Attached files
| file | filename |
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| 8-K - FORM 8-K - WEINGARTEN REALTY INVESTORS /TX/ | d8k.htm |
| EX-99.2 - SUPPLEMENT FINANCIAL INFORMATION - WEINGARTEN REALTY INVESTORS /TX/ | dex992.htm |
Exhibit 99.1
2600 Citadel Plaza Drive
P.O. Box 924133
Houston, Texas 77292-4133
NEWS RELEASE
Information: Kristin Horn, Director of Investor Relations, Phone: (713) 866-6050
WEINGARTEN REALTY ANNOUNCES
SECOND QUARTER 2011 RESULTS
Houston, August 2, 2011 — Weingarten Realty (NYSE: WRI) announced today the results of its operations for the quarter ended June 30, 2011. The supplemental financial package with additional information can be found on the Company’s website under the Investor Relations tab.
Second Quarter Operating and Financial Highlights
| • | Recurring Funds from Operations (“FFO”) for the quarter increased 4.8% on a per share basis from a year ago to $0.44 per diluted share. Reported FFO was $0.30 per diluted share for the quarter; |
| • | Retail Same Property Net Operating Income (“NOI”) increased for the fifth consecutive quarter by 0.2%; |
| • | Occupancy for retail spaces less than 10,000 square feet (referred to as “small shop space”) increased 1.2% to 86.3% from 85.1% which helped boost retail occupancy to 92.4% for the second quarter; and |
| • | Industrial occupancy also increased 1.0% to 88.0% from 87.0% improving the Company’s total occupancy to 91.2% up from 90.8% for the same period in 2010. |
Financial Results
The Company reported a net loss attributable to common shareholders of $7.2 million or $0.06 per diluted share for the second quarter of 2011, as compared to net loss of $5.6 million or $0.05 per diluted share for the same period in 2010. This quarter’s net loss was due to a non-cash impairment charge of $0.18 per share which included the $0.15 per share from the remarketing of tax increment financing bonds related to our Sheridan, CO development project that was discussed on the first quarter conference call.
Recurring FFO for the quarter ended June 30, 2011 was $0.44 per diluted share or $52.5 million. For the same quarter last year, Recurring FFO was $0.42 per diluted share or $50.6 million. The increase in Recurring FFO from the prior year was primarily due to increases in NOI from acquisitions and new development completions. Reported FFO was $36.4 million or $0.30 per diluted share for the second quarter of 2011 compared to $34.5 million or $0.29 per diluted share for 2010.
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In addition to the Sheridan impairment previously discussed, the Company recorded an additional $0.03 per share of non-cash impairment related to dispositions in Rockwall, TX, Kansas City, KS, and a tract of land under contract for sale in North Carolina. The total impairment charge for the second quarter was $0.18 per diluted share.
A reconciliation between net income attributable to common shareholders to Reported FFO and Recurring FFO is listed on page 5 of the supplemental package.
Operating Results
Same Property Net Operating Income (“SPNOI”) for retail properties was 0.2% for the quarter. This is the fifth consecutive quarter of positive SPNOI growth. Industrial SPNOI was down 5.0%, resulting in the Company’s total SPNOI decreasing 0.4% for the second quarter.
The Company produced strong leasing results during the second quarter in its retail and industrial portfolios with 481 new leases and renewals, totaling 1.6 million square feet. The 481 transactions were comprised of 212 new leases and 269 renewals, which represent annualized revenues of $9.1 million and $11.0 million, respectively.
“We’re very pleased our shop space occupancy improved from 85.1% to 86.3%, quarter over quarter. Record shop leasing production and significantly reduced shop fallout contributed to the gain,” said Johnny Hendrix, Executive Vice President and Chief Operating Officer.
Acquisitions
During the second quarter, the Company purchased Cherry Creek Retail Center located in Glendale, CO, a suburb of Denver. This 79,000 square foot project has a population density of 191,000 within a three mile radius of the center and is currently 100% leased.
Also during the quarter, the Company acquired its partner’s 50% interest in Palm Coast Landing, a property Weingarten developed in Palm Coast, FL. The 167,000 square foot center is anchored by Super Target, TJ Maxx, Ross Dress for Less, Michael’s and PetSmart and is currently 99.3% leased.
As a result of this acquisition, the Company recorded a $4.6 million gain which essentially represents the realization of the preferred return on equity in the development which the Company was required to recognize upon consolidation of this entity.
The acquisitions completed year-to-date represents a pro rata investment of $68.5 million.
“Weingarten has acquired some high quality, high barrier to entry retail properties in 2011, even with a very challenging market. We continue to focus on acquisitions that will enhance the overall quality of our portfolio requiring patience in our approach to
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ensure we create shareholder value in the process,” said Drew Alexander, President and Chief Executive Officer.
Dispositions
The Company closed on the sale of two retail properties and four outparcels which totaled $42.1 million dollars on a pro rata basis during the second quarter of 2011. The sales of the two retail properties commenced the disposition of the Secondary portfolio outlined at the Company’s Analyst Day in New York on April 14, 2011.
In addition, the sale of Shawnee Village in Kansas City, KS marks Weingarten’s exit from this non-core market.
Dividends
The Board of Trust Managers declared a common dividend of $0.275 per share during the second quarter of 2011. The dividend is payable in cash on September 15, 2011 to shareholders of record on September 2, 2011.
The Board of Trust Managers also declared dividends on the Company’s preferred shares. Dividends related to the 6.75% Series D Cumulative Redeemable Preferred Shares (NYSE:WRIPrD) are $0.421875 per share for the quarter. Dividends on the 6.95% Series E Cumulative Redeemable Preferred Shares (NYSE:WRIPrE) are $0.434375 per share for the same period. Dividends on the 6.50% Series F Cumulative Redeemable Preferred Shares (NYSE:WRIPrF) are $0.40625 per share for the quarter. All preferred dividends are also payable on September 15, 2011 to shareholders of record on September 2, 2011.
Conference Call Information
The Company also announced that it will host a live webcast of its quarterly conference call at its revised time on August 3, 2011 at 1:00 p.m. Central Time. The live webcast can be accessed via the Company’s website at www.weingarten.com. Alternatively, if you are not able to access the call on the web, you can listen live by phone by calling (877) 763-1324 (conference ID # 73117810). A replay and Podcast will be available through the Company’s web site starting approximately two hours following the live call.
About Weingarten Realty Investors
Weingarten Realty Investors (NYSE: WRI) is a commercial real estate owner, manager and developer. At June 30, 2011, the Company owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 386 developed income-producing properties and 11 properties under various stages of construction and development. The total number of properties includes 317 neighborhood and community shopping centers located in 22 states spanning the country from coast to coast. The Company also owns 77 industrial projects located in California,
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Florida, Georgia, Tennessee, Texas and Virginia and three other operating properties located in Arizona and Texas. At June 30, 2011, the Company operated a portfolio of properties representing approximately 73.4 million square feet. To learn more about the Company’s operations and growth strategies, please visit www.weingarten.com.
Forward-Looking Statements
Statements included herein that state the Company’s or Management’s intentions, hopes, beliefs, expectations or predictions of the future are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 which by their nature, involve known and unknown risks and uncertainties. The Company’s actual results, performance or achievements could differ materially from those expressed or implied by such statements. Reference is made to the Company’s regulatory filings with the Securities and Exchange Commission for information or factors that may impact the Company’s performance.
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Financial Statements
Weingarten Realty Investors
(in thousands, except per share amounts)
| Three Months Ended June 30, |
Six Months Ended June 30, |
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| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | 2011 | 2010 | 2011 | 2010 | ||||||||||||
| AND FUNDS FROM OPERATIONS | (Unaudited) | (Unaudited) | ||||||||||||||
| Rentals, net |
$ | 135,521 | $ | 134,320 | $ | 266,894 | $ | 267,399 | ||||||||
| Other Income |
5,704 | 3,471 | 8,426 | 6,484 | ||||||||||||
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| Total Revenues |
141,225 | 137,791 | 275,320 | 273,883 | ||||||||||||
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| Depreciation and Amortization |
39,609 | 37,685 | 78,040 | 73,542 | ||||||||||||
| Operating Expense |
26,839 | 25,581 | 51,122 | 51,373 | ||||||||||||
| Real Estate Taxes, net |
16,327 | 16,218 | 33,072 | 32,973 | ||||||||||||
| Impairment Loss |
18,892 | 15,825 | 19,662 | 16,061 | ||||||||||||
| General and Administrative Expense |
6,612 | 6,069 | 13,168 | 12,660 | ||||||||||||
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| Total Expenses |
108,279 | 101,378 | 195,064 | 186,609 | ||||||||||||
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| Operating Income |
32,946 | 36,413 | 80,256 | 87,274 | ||||||||||||
| Interest Expense, net |
(37,324 | ) | (37,280 | ) | (74,170 | ) | (74,719 | ) | ||||||||
| Interest and Other Income, net |
1,423 | 972 | 3,478 | 3,835 | ||||||||||||
| Equity in Earnings of Real Estate Joint Ventures and Partnerships, net |
3,579 | 2,630 | 6,976 | 5,866 | ||||||||||||
| Loss on Redemption of Convertible Senior Unsecured Notes |
(135 | ) | (135 | ) | ||||||||||||
| Gain on Acquisition |
4,559 | 4,559 | ||||||||||||||
| Gain on Land and Merchant Development Sales |
1 | 963 | ||||||||||||||
| (Provision) Benefit for Income Taxes |
(119 | ) | 320 | 197 | (156 | ) | ||||||||||
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| Income from Continuing Operations |
5,065 | 2,920 | 22,259 | 21,965 | ||||||||||||
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| Operating (Loss) Income from Discontinued Operations |
(2,261 | ) | 138 | (2,365 | ) | 367 | ||||||||||
| Gain on Sale of Property from Discontinued Operations |
618 | 618 | ||||||||||||||
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| (Loss) Income from Discontinued Operations |
(2,261 | ) | 756 | (2,365 | ) | 985 | ||||||||||
| Gain (Loss) on Sale of Property |
135 | (6 | ) | 233 | 842 | |||||||||||
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| Net Income |
2,939 | 3,670 | 20,127 | 23,792 | ||||||||||||
| Less: Net Income Attributable to Noncontrolling Interests |
(1,236 | ) | (367 | ) | (2,328 | ) | (1,381 | ) | ||||||||
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| Net Income Adjusted for Noncontrolling Interests |
1,703 | 3,303 | 17,799 | 22,411 | ||||||||||||
| Less: Preferred Share Dividends |
(8,869 | ) | (8,869 | ) | (17,738 | ) | (17,738 | ) | ||||||||
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| Net (Loss) Income Attributable to Common Shareholders—Basic |
($ | 7,166 | ) | ($ | 5,566 | ) | $ | 61 | $ | 4,673 | ||||||
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| Earnings Per Common Share—Basic |
($ | 0.06 | ) | ($ | 0.05 | ) | $ | 0.00 | $ | 0.04 | ||||||
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| Net (Loss) Income Attributable to Common Shareholders—Diluted |
($ | 7,166 | ) | ($ | 5,566 | ) | $ | 61 | $ | 4,673 | ||||||
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| Earnings Per Common Share—Diluted |
($ | 0.06 | ) | ($ | 0.05 | ) | $ | 0.00 | $ | 0.04 | ||||||
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| Funds from Operations: |
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| Net (Loss) Income Attributable to Common Shareholders |
($ | 7,166 | ) | ($ | 5,566 | ) | $ | 61 | $ | 4,673 | ||||||
| Depreciation and Amortization |
37,999 | 35,734 | 74,927 | 70,188 | ||||||||||||
| Depreciation and Amortization of Unconsolidated Joint Ventures |
5,629 | 4,922 | 11,593 | 9,945 | ||||||||||||
| Gain on Sale of Property |
(89 | ) | (618 | ) | (187 | ) | (1,461 | ) | ||||||||
| (Gain) Loss on Sale of Property of Unconsolidated Joint Ventures |
(1 | ) | 10 | 1 | ||||||||||||
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| Funds from Operations—Basic |
$ | 36,373 | $ | 34,471 | $ | 86,404 | $ | 83,346 | ||||||||
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| Funds from Operations Per Common Share—Basic |
$ | 0.30 | $ | 0.29 | $ | 0.72 | $ | 0.70 | ||||||||
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| Funds from Operations—Diluted |
$ | 36,373 | $ | 34,471 | $ | 86,404 | $ | 83,346 | ||||||||
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| Funds from Operations Per Common Share—Diluted |
$ | 0.30 | $ | 0.29 | $ | 0.71 | $ | 0.69 | ||||||||
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| Weighted Average Shares Outstanding—Basic |
120,345 | 119,936 | 120,244 | 119,858 | ||||||||||||
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| Weighted Average Shares Outstanding—Diluted |
120,345 | 119,936 | 121,211 | 120,655 | ||||||||||||
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| CONDENSED CONSOLIDATED BALANCE SHEETS | June
30, 2011 (Unaudited) |
December 31, 2010 (Audited) |
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| Property |
$ | 4,827,374 | $ | 4,777,794 | ||||
| Accumulated Depreciation |
(1,025,170 | ) | (971,249 | ) | ||||
| Investment in Real Estate Joint Ventures and Partnerships, net |
345,404 | 347,526 | ||||||
| Notes Receivable from Real Estate Joint Ventures and Partnerships |
159,760 | 184,788 | ||||||
| Unamortized Debt and Lease Costs, net |
120,625 | 116,437 | ||||||
| Accrued Rent and Accounts Receivable, net |
78,145 | 95,859 | ||||||
| Cash and Cash Equivalents |
24,374 | 23,859 | ||||||
| Restricted Deposits and Mortgage Escrows |
32,003 | 10,208 | ||||||
| Other, net |
193,263 | 222,633 | ||||||
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| Total Assets |
$ | 4,755,778 | $ | 4,807,855 | ||||
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| Debt, net |
$ | 2,615,976 | $ | 2,589,448 | ||||
| Accounts Payable and Accrued Expenses |
108,929 | 126,767 | ||||||
| Other, net |
109,287 | 111,383 | ||||||
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| Total Liabilities |
2,834,192 | 2,827,598 | ||||||
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| Commitments and Contingencies |
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| Preferred Shares of Beneficial Interest |
8 | 8 | ||||||
| Common Shares of Beneficial Interest |
3,640 | 3,630 | ||||||
| Accumulated Additional Paid-In Capital |
1,980,285 | 1,969,905 | ||||||
| Net Income Less Than Accumulated Dividends |
(218,126 | ) | (151,780 | ) | ||||
| Accumulated Other Comprehensive Loss |
(20,826 | ) | (21,774 | ) | ||||
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| Shareholders’ Equity |
1,744,981 | 1,799,989 | ||||||
| Noncontrolling Interests |
176,605 | 180,268 | ||||||
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| Total Liabilities, Shareholders’ Equity and Noncontrolling Interests |
$ | 4,755,778 | $ | 4,807,855 | ||||
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