Weingarten Realty (NYSE: WRI) Reports Strong Fourth Quarter Operations And Issues 2019 Guidance
If you were unable to listen to the earnings conference call, we have you covered. Below is the link to the transcript to read or you can watch the highlight video.
Would you like to read the transcript?
Fourth Quarter and Full Year Operating and Financial Highlights
- Net income attributable to common shareholders (“Net Income”) was $0.46 per diluted share (hereinafter “per share”) for the quarter and $2.55 per share for the year compared to $1.30 and $2.60 per share for each respective period in 2017;
- Core Funds From Operations Attributable to Common Shareholders (“Core FFO”) was $0.55 per share for the quarter and $2.28 per share for the year compared to $0.61 and $2.45 per share for each respective period in 2017;
- Same Property Net Operating Income (“SPNOI”) including redevelopments increased by 3.4% over the fourth quarter of 2017 and by 2.5% over the full year 2017;
- Rental rates on new leases completed during the quarter were up 37.4% and 18.7% for the full year;
- Signed occupancy was unchanged from the third quarter of 2018 at 94.4%;
- Dispositions totaled $241 million in the fourth quarter and $635 million for the full year;
- Balance sheet leverage was reduced with Net Debt to Adjusted EBITDA declining to 5.00 times; and,
- A special dividend of $1.40 per share was paid to shareholders in December of 2018.
During the quarter, the Company closed $241 million of dispositions with the sale of the following shopping centers and two land parcels:
- Stoneridge Towne Centre in Moreno Valley, CA (Partial sale to complete disposition of the property)
- South Fulton Crossing (Land) in Union City, GA
- Regency Centre in Lexington, KY
- Surf City Crossing in Wilmington, NC
- Cullen Plaza in Houston, TX
During the quarter, the Company invested $139 million in new developments and redevelopments, and expects to spend around $200 million in 2019.
Balance Sheet improvements include:
- Net Debt to Core EBITDA was a strong 5.00 times, and
- Debt to Total Market Capitalization was 35.8% at year-end.
The Company’s guidance for 2019 is as follows:
|Net Income (per share)||$1.77 – $1.89|
|NAREIT FFO (per share)||$2.09 – $2.17|
|Core FFO (per share)||$2.09 – $2.17|
|Acquisitions||$50 – $150 million|
|Re / New Development||$175 – $225 million|
|Dispositions||$250 – $350 million|
|Same Property NOI with redevelopments||2.00% – 3.00%|
Fourth Quarter Resources