Weingarten Realty (NYSE: WRI) Reports Strong Fourth Quarter Operations And Issues 2020 Guidance
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Fourth Quarter Financial Highlights
- Net income attributable to common shareholders (“Net Income”) was $0.58 per diluted share (hereinafter “per share”) for the quarter and $2.44 per share for the year compared to $0.46 and $2.55 per share for each respective period in 2018;
- Core Funds From Operations Attributable to Common Shareholders (“Core FFO”) was $0.53 per share for the quarter and $2.10 per share for the year compared to $0.55 and $2.28 per share for each respective period in 2018;
- Same Property Net Operating Income (“SPNOI”) including redevelopments increased by 2.5% over the fourth quarter of 2018 and by 3.3% over the full year 2018;
- Rental rates on new leases and renewals completed during the quarter were up 16.3% and 10.2%, respectively;
- Signed occupancy at year-end was 95.2%, an increase of 0.8% from 94.4% at the end of 2018;
- Acquisitions totaled $165 million in the quarter and $246 million for the full year;
- Dispositions totaled $90 million in the quarter and $452 million for the full year;
- Balance sheet leverage remained among the lowest in the sector with Net Debt to Adjusted EBITDAre of 5.17 times; and
- Common dividends per share of $0.395 per quarter were declared or $1.58 per share on an annualized basis.
During the quarter, the Company acquired three shopping centers for $165 million.
- Stevens Creek Central – San Jose, CA
- The Shops at Hilshire Village – Houston, TX
- Covington Esplanade – Seattle Metro Area, WA
Acquisitions for the full year totaled $246 million, including five grocery-anchored centers in urban, infill locations with strong demographics.
In addition, the Company sold three properties during the quarter for $90 million including a power center in Las Vegas, a center in Houston and the Company’s last property in Arkansas.
For all of 2019, WRI sold $452 million of assets with the disposition of 15 shopping centers and other real estate.
The Company invested $173 million in new developments and redevelopments in 2019.
“We continue to upgrade the quality of our portfolio by successfully disposing of assets that are in the bottom portion of our portfolio and reinvesting these proceeds in quality acquisitions as well as our new development and redevelopment projects.,” said Drew Alexander, President, and Chief Executive Officer.
“We continue to maintain one of the strongest balance sheets in our sector which not only provides significant security for our shareholders in the event of unexpected market events, but also positions us to pursue additional growth opportunities,” said Steve Richter, Executive Vice President, and Chief Financial Officer.
- Net Debt to Core EBITDA is was a strong 5.17 times
- Debt to Total Market Capitalization was 29.9%
Fourth Quarter Resources