Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - WEINGARTEN REALTY INVESTORS /TX/ | d361367d8k.htm |
Exhibit 99.1
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Basis of Presentation
On May 24, 2012, Weingarten Realty Investors and certain of its subsidiaries completed the sale of 52 industrial properties for a total sales price of $382.4 million (inclusive of assumed debt of $4.8 million as of the date of sale) to DRA Fund VII LLC, an affiliate of DRA Advisors LLC (the “Sale”). The following unaudited pro forma condensed consolidated financial statements have been prepared to reflect the effect of the Sale as described in Item 2.01 of the Current Report on Form 8-K with which this Exhibit 99.1 is filed.
The unaudited pro forma condensed consolidated balance sheet as of March 31, 2012 is presented to reflect the effect of the Sale as if it had occurred on March 31, 2012. The unaudited pro forma condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2012 and the years ended December 31, 2011, 2010 and 2009, are based on our historical consolidated statements of operations and comprehensive income, and gives effect to the Sale as if it had occurred on January 1, 2009.
The unaudited pro forma condensed consolidated financial statements presented are based on the assumptions and adjustments set forth in the notes thereto. The unaudited pro forma adjustments made in the compilation of the unaudited pro forma condensed consolidated financial statements were: directly attributable to the Sale, based upon available information and assumptions, which we consider to be reasonable, and made solely for purposes of developing such unaudited pro forma financial information for illustrative purposes in compliance with the disclosure requirements of the Securities and Exchange Commission (“SEC”). The unaudited pro forma condensed consolidated financial information is presented for informational purposes only and should not be considered indicative of actual results that would have been achieved had the Sale actually been consummated on the dates indicated and does not purport to be indicative of the financial condition as of any future date or results of operations for any future period.
The unaudited pro forma condensed consolidated financial information should be read in conjunction with the our audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on February 29, 2012, and the unaudited consolidated financial statements and notes thereto included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2012, filed with the SEC on May 10, 2012.
1
Weingarten Realty Investors
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of March 31, 2012
| As Reported (a) |
Pro Forma Adjustments (b) |
Pro Forma | ||||||||||
| ASSETS | ||||||||||||
| Property |
$ | 4,263,222 | $ | 4,263,222 | ||||||||
| Accumulated Depreciation |
(981,443) | (981,443) | ||||||||||
| Property Held for Sale, net |
414,413 | $ | (342,811) | 71,602 | ||||||||
|
|
|
|
|
|
|
|||||||
| Property, net |
3,696,192 | (342,811) | 3,353,381 | |||||||||
| Investment in Real Estate Joint Ventures and Partnerships, net |
338,332 | 338,332 | ||||||||||
|
|
|
|
|
|
|
|||||||
| Total |
4,034,524 | (342,811) | 3,691,713 | |||||||||
| Notes Receivable from Real Estate Joint Ventures and Partnerships |
92,216 | 92,216 | ||||||||||
| Unamortized Debt and Lease Costs, net |
117,346 | (9,100) | 108,246 | |||||||||
| Accrued Rent and Accounts Receivable, net |
69,702 | (4,524) | 65,178 | |||||||||
| Cash and Cash Equivalents |
18,024 | 18,024 | ||||||||||
| Restricted Deposits and Mortgage Escrows |
9,834 | 94,798 | 104,632 | |||||||||
| Other, net |
170,895 | (1,084) | 169,811 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Assets |
$ | 4,512,541 | $ | (262,721) | $ | 4,249,820 | ||||||
|
|
|
|
|
|
|
|||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Debt, net |
$ | 2,497,561 | $ | (279,907) | $ | 2,217,654 | ||||||
| Accounts Payable and Accrued Expenses |
95,436 | (1,421) | 94,015 | |||||||||
| Other, net |
115,285 | (1,302) | 113,983 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Liabilities |
2,708,282 | (282,630) | 2,425,652 | |||||||||
|
|
|
|
|
|
|
|||||||
| Commitments and Contingencies |
||||||||||||
| Equity: |
||||||||||||
| Shareholders’ Equity: |
||||||||||||
| Preferred Shares of Beneficial Interest – par value, $.03 per share; shares authorized: 10,000 |
||||||||||||
| 6.75% Series D cumulative redeemable preferred shares of beneficial interest; 100 shares issued and outstanding; liquidation preference $75,000 |
3 | 3 | ||||||||||
| 6.95% Series E cumulative redeemable preferred shares of beneficial interest, 29 shares issued and outstanding; liquidation preference $72,500 |
1 | 1 | ||||||||||
| 6.5% Series F cumulative redeemable preferred shares of beneficial interest; 140 shares issued and outstanding; liquidation preference $350,000 |
4 | 4 | ||||||||||
| Common Shares of Beneficial Interest – par value, $.03 per share; shares authorized: 275,000; shares issued and outstanding: 121,113 |
3,649 | 3,649 | ||||||||||
| Additional Paid-In Capital |
1,989,198 | 1,989,198 | ||||||||||
| Net Income Less Than Accumulated Dividends |
(327,296) | 19,909 | (307,387) | |||||||||
| Accumulated Other Comprehensive Loss |
(27,068) | (27,068) | ||||||||||
|
|
|
|
|
|
|
|||||||
| Total Shareholders’ Equity |
1,638,491 | 19,909 | 1,658,400 | |||||||||
| Noncontrolling Interests |
165,768 | 165,768 | ||||||||||
|
|
|
|
|
|
|
|||||||
| Total Equity |
1,804,259 | 19,909 | 1,824,168 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Liabilities and Equity |
$ | 4,512,541 | $ | (262,721) | $ | 4,249,820 | ||||||
|
|
|
|
|
|
|
|||||||
See Accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.
2
Weingarten Realty Investors
Unaudited Pro Forma Condensed Consolidated Statement of Operations and Comprehensive Income
For the Three Months Ended March 31, 2012
(in thousands, except per share data)
| As Reported (c) |
Pro
Forma Adjustments (d) |
Pro Forma | ||||||||||
| Revenues: |
||||||||||||
| Rentals, net |
$ | 119,747 | $ | 119,747 | ||||||||
| Other |
2,724 | 2,724 | ||||||||||
|
|
|
|
|
|
|
|||||||
| Total |
122,471 | 122,471 | ||||||||||
|
|
|
|
|
|
|
|||||||
| Expenses: |
||||||||||||
| Depreciation and amortization |
34,377 | 34,377 | ||||||||||
| Operating |
23,014 | $ | (221) | 22,793 | ||||||||
| Real estate taxes, net |
14,164 | 14,164 | ||||||||||
| Impairment loss |
6,852 | 6,852 | ||||||||||
| General and administrative |
8,307 | (112) | 8,195 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total |
86,714 | (333) | 86,381 | |||||||||
|
|
|
|
|
|
|
|||||||
| Operating Income |
35,757 | 333 | 36,090 | |||||||||
| Interest Expense, net |
(31,429) | 1,348 | (30,081) | |||||||||
| Interest and Other Income, net |
2,386 | 2,386 | ||||||||||
| Gain on Sale of Real Estate Joint Venture and Partnership Interests |
5,562 | 5,562 | ||||||||||
| Equity in Earnings of Real Estate Joint Ventures and Partnerships, net |
4,075 | 4,075 | ||||||||||
| Benefit for Income Taxes |
22 | 22 | ||||||||||
|
|
|
|
|
|
|
|||||||
| Income from Continuing Operations |
16,373 | 1,681 | 18,054 | |||||||||
|
|
|
|
|
|
|
|||||||
| Operating Income (Loss) from Discontinued Operations |
2,191 | (3,106) | (915) | |||||||||
| Gain on Sale of Property from Discontinued Operations |
3,634 | 3,634 | ||||||||||
|
|
|
|
|
|
|
|||||||
| Income from Discontinued Operations |
5,825 | (3,106) | 2,719 | |||||||||
| Gain on Sale of Property |
440 | 440 | ||||||||||
|
|
|
|
|
|
|
|||||||
| Net Income |
22,638 | (1,425) | 21,213 | |||||||||
| Less: Net Income Attributable to Noncontrolling Interests |
(1,441) | (1,441) | ||||||||||
|
|
|
|
|
|
|
|||||||
| Net Income Adjusted for Noncontrolling Interests |
21,197 | (1,425) | 19,772 | |||||||||
| Dividends on Preferred Shares |
(8,869) | (8,869) | ||||||||||
|
|
|
|
|
|
|
|||||||
| Net Income Attributable to Common Shareholders |
$ | 12,328 | $ | (1,425) | $ | 10,903 | ||||||
|
|
|
|
|
|
|
|||||||
| Earnings Per Common Share – Basic: |
||||||||||||
| Income from continuing operations attributable to common shareholders |
$ | 0.05 | $ | 0.02 | $ | 0.07 | ||||||
| Income from discontinued operations |
0.05 | (0.03) | 0.02 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net income attributable to common shareholders |
$ | 0.10 | $ | (0.01) | $ | 0.09 | ||||||
|
|
|
|
|
|
|
|||||||
| Earnings Per Common Share – Diluted: |
||||||||||||
| Income from continuing operations attributable to common shareholders |
$ | 0.05 | $ | 0.02 | $ | 0.07 | ||||||
| Income from discontinued operations |
0.05 | (0.03) | 0.02 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net income attributable to common shareholders |
$ | 0.10 | $ | (0.01) | $ | 0.09 | ||||||
|
|
|
|
|
|
|
|||||||
| Comprehensive Income: |
||||||||||||
| Net income |
$ | 22,638 | $ | (1,425) | $ | 21,213 | ||||||
| Net unrealized gain on derivatives |
16 | 16 | ||||||||||
| Amortization of loss on derivatives |
659 | 659 | ||||||||||
|
|
|
|
|
|
|
|||||||
| Comprehensive Income |
23,313 | (1,425) | 21,888 | |||||||||
| Comprehensive Income Attributable to Noncontrolling Interests |
(1,441) | (1,441) | ||||||||||
|
|
|
|
|
|
|
|||||||
| Comprehensive Income Adjusted for Noncontrolling Interests |
$ | 21,872 | $ | (1,425) | $ | 20,447 | ||||||
|
|
|
|
|
|
|
|||||||
See Accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.
3
Weingarten Realty Investors
Unaudited Pro Forma Condensed Consolidated Statement of Operations and Comprehensive Income
For the Year Ended December 31, 2011
(in thousands, except per share data)
| As Reported (e) |
Amounts Transferred to Discontinued Operations (f) |
As Adjusted | Pro Forma Adjustments (d) |
Pro Forma | ||||||||||||||||
| Revenues: |
||||||||||||||||||||
| Rentals, net |
$ | 526,533 | $ | (49,032) | $ | 477,501 | $ | 477,501 | ||||||||||||
| Other |
15,028 | (860) | 14,168 | 14,168 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
541,561 | (49,892) | 491,669 | 491,669 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Expenses: |
||||||||||||||||||||
| Depreciation and amortization |
152,983 | (18,051) | 134,932 | 134,932 | ||||||||||||||||
| Operating |
101,657 | (9,063) | 92,594 | $ | (820) | 91,774 | ||||||||||||||
| Real estate taxes, net |
64,243 | (7,438) | 56,805 | 56,805 | ||||||||||||||||
| Impairment loss |
58,734 | (2,328) | 56,406 | 56,406 | ||||||||||||||||
| General and administrative |
25,528 | (50) | 25,478 | (404) | 25,074 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
403,145 | (36,930) | 366,215 | (1,224) | 364,991 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Income |
138,416 | (12,962) | 125,454 | 1,224 | 126,678 | |||||||||||||||
| Interest Expense, net |
(141,757) | 685 | (141,072) | 3,466 | (137,606) | |||||||||||||||
| Interest and Other Income, net |
5,062 | 5,062 | 5,062 | |||||||||||||||||
| Equity in Earnings of Real Estate Joint Ventures and Partnerships, net |
7,834 | 7,834 | 7,834 | |||||||||||||||||
| Provision for Income Taxes |
(395) | 215 | (180) | (180) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (Loss) from Continuing Operations |
9,160 | (12,062) | (2,902) | 4,690 | 1,788 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating (Loss) Income from Discontinued Operations |
(4,373) | 12,062 | 7,689 | (13,717) | (6,028) | |||||||||||||||
| Gain on Sale of Property from Discontinued Operations |
10,215 | (3) | 10,212 | 10,212 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income from Discontinued Operations |
5,842 | 12,059 | 17,901 | (13,717) | 4,184 | |||||||||||||||
| Gain on Sale of Property |
1,737 | 3 | 1,740 | 1,740 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Income |
16,739 | - | 16,739 | (9,027) | 7,712 | |||||||||||||||
| Less: Net Income Attributable to Noncontrolling Interests |
(1,118) | (1,118) | (1,118) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Income Adjusted for Noncontrolling Interests |
15,621 | - | 15,621 | (9,027) | 6,594 | |||||||||||||||
| Dividends on Preferred Shares |
(35,476) | (35,476) | (35,476) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Loss Attributable to Common Shareholders |
$ | (19,855) | $ | - | $ | (19,855) | $ | (9,027) | $ | (28,882) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Earnings Per Common Share – Basic: |
||||||||||||||||||||
| Loss from continuing operations attributable to common shareholders |
$ | (0.21) | $ | (0.10) | $ | (0.31) | $ | 0.04 | $ | (0.27) | ||||||||||
| Income from discontinued operations |
0.04 | 0.10 | 0.14 | (0.11) | 0.03 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net loss attributable to common shareholders |
$ | (0.17) | $ | - | $ | (0.17) | $ | (0.07) | $ | (0.24) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Earnings Per Common Share – Diluted: |
||||||||||||||||||||
| Loss from continuing operations attributable to common shareholders |
$ | (0.21) | $ | (0.10) | $ | (0.31) | $ | 0.04 | $ | (0.27) | ||||||||||
| Income from discontinued operations |
0.04 | 0.10 | 0.14 | (0.11) | 0.03 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net loss attributable to common shareholders |
$ | (0.17) | $ | - | $ | (0.17) | $ | (0.07) | $ | (0.24) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Comprehensive Income: |
||||||||||||||||||||
| Net income |
$ | 16,739 | $ | - | $ | 16,739 | $ | (9,027) | $ | 7,712 | ||||||||||
| Net unrealized loss on derivatives |
(854) | (854) | (854) | |||||||||||||||||
| Amortization of loss on derivatives |
2,551 | 2,551 | 2,551 | |||||||||||||||||
| Retirement liability adjustment |
(7,666) | (7,666) | (7,666) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Comprehensive Income |
10,770 | - | 10,770 | (9,027) | 1,743 | |||||||||||||||
| Comprehensive Income Attributable to Noncontrolling Interests |
(1,118) | (1,118) | (1,118) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Comprehensive Income Adjusted for Noncontrolling Interests |
$ | 9,652 | $ | - | $ | 9,652 | $ | (9,027) | $ | 625 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
See Accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.
4
Weingarten Realty Investors
Unaudited Pro Forma Condensed Consolidated Statement of Operations and Comprehensive Income
For the Year Ended December 31, 2010
(in thousands, except per share data)
| As Reported (e) |
Amounts Transferred to Discontinued Operations (f) |
As Adjusted | Pro Forma Adjustments (d) |
Pro Forma | ||||||||||||||||
| Revenues: |
||||||||||||||||||||
| Rentals, net |
$ | 521,376 | $ | (49,003) | $ | 472,373 | $ | 472,373 | ||||||||||||
| Other |
13,708 | (930) | 12,778 | 12,778 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
535,084 | (49,933) | 485,151 | 485,151 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Expenses: |
||||||||||||||||||||
| Depreciation and amortization |
145,893 | (17,445) | 128,448 | 128,448 | ||||||||||||||||
| Operating |
102,138 | (8,723) | 93,415 | $ | (795) | 92,620 | ||||||||||||||
| Real estate taxes, net |
61,537 | (7,107) | 54,430 | 54,430 | ||||||||||||||||
| Impairment loss |
33,317 | 33,317 | 33,317 | |||||||||||||||||
| General and administrative |
24,993 | (49) | 24,944 | (392) | 24,552 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
367,878 | (33,324) | 334,554 | (1,187) | 333,367 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Income |
167,206 | (16,609) | 150,597 | 1,187 | 151,784 | |||||||||||||||
| Interest Expense, net |
(148,152) | 709 | (147,443) | 216 | (147,227) | |||||||||||||||
| Interest and Other Income, net |
9,825 | 9,825 | 9,825 | |||||||||||||||||
| Loss on Redemption of Convertible Senior Unsecured Notes |
(135) | (135) | (135) | |||||||||||||||||
| Equity in Earnings of Real Estate Joint Ventures and Partnerships, net |
12,889 | 12,889 | 12,889 | |||||||||||||||||
| (Provision) Benefit for Income Taxes |
(180) | 228 | 48 | 48 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income from Continuing Operations |
41,453 | (15,672) | 25,781 | 1,403 | 27,184 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Income from Discontinued Operations |
6,687 | 15,672 | 22,359 | (15,036) | 7,323 | |||||||||||||||
| Gain on Sale of Property from Discontinued Operations |
1,093 | 1,093 | 1,093 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income from Discontinued Operations |
7,780 | 15,672 | 23,452 | (15,036) | 8,416 | |||||||||||||||
| Gain on Sale of Property |
2,005 | 2,005 | 2,005 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Income |
51,238 | - | 51,238 | (13,633) | 37,605 | |||||||||||||||
| Less: Net Income Attributable to Noncontrolling Interests |
(5,032) | (5,032) | (5,032) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Income Adjusted for Noncontrolling Interests |
46,206 | - | 46,206 | (13,633) | 32,573 | |||||||||||||||
| Dividends on Preferred Shares |
(35,476) | (35,476) | (35,476) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Income (Loss) Attributable to Common Shareholders |
$ | 10,730 | $ | - | $ | 10,730 | $ | (13,633) | $ | (2,903) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Earnings Per Common Share – Basic: |
||||||||||||||||||||
| Income (loss) from continuing operations attributable to common shareholders |
$ | 0.02 | $ | (0.13) | $ | (0.11) | $ | 0.02 | $ | (0.09) | ||||||||||
| Income from discontinued operations |
0.07 | 0.13 | 0.20 | (0.13) | 0.07 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) attributable to common shareholders |
$ | 0.09 | $ | - | $ | 0.09 | $ | (0.11) | $ | (0.02) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Earnings Per Common Share – Diluted: |
||||||||||||||||||||
| Income (loss) from continuing operations attributable to common shareholders |
$ | 0.02 | $ | (0.13) | $ | (0.11) | $ | 0.02 | $ | (0.09) | ||||||||||
| Income from discontinued operations |
0.07 | 0.13 | 0.20 | (0.13) | 0.07 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) attributable to common shareholders |
$ | 0.09 | $ | - | $ | 0.09 | $ | (0.11) | $ | (0.02) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Comprehensive Income: |
||||||||||||||||||||
| Net income |
$ | 51,238 | $ | - | $ | 51,238 | $ | (13,633) | $ | 37,605 | ||||||||||
| Net unrealized gain on derivatives |
123 | 123 | 123 | |||||||||||||||||
| Amortization of loss on derivatives |
2,566 | 2,566 | 2,566 | |||||||||||||||||
| Retirement liability adjustment |
(505) | (505) | (505) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Comprehensive Income |
53,422 | - | 53,422 | (13,633) | 39,789 | |||||||||||||||
| Comprehensive Income Attributable to Noncontrolling Interests |
(5,032) | (5,032) | (5,032) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Comprehensive Income Adjusted for Noncontrolling Interests |
$ | 48,390 | $ | - | $ | 48,390 | $ | (13,633) | $ | 34,757 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
See Accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.
5
Weingarten Realty Investors
Unaudited Pro Forma Condensed Consolidated Statement of Operations and Comprehensive Income
For the Year Ended December 31, 2009
(in thousands, except per share data)
| As Reported (e) |
Amounts Transferred to Discontinued Operations (f) |
As Adjusted | Pro Forma Adjustments (d) |
Pro Forma | ||||||||||||||||
| Revenues: |
||||||||||||||||||||
| Rentals, net |
$ | 534,374 | $ | (50,007) | $ | 484,367 | $ | 484,367 | ||||||||||||
| Other |
17,852 | (1,413) | 16,439 | 16,439 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
552,226 | (51,420) | 500,806 | 500,806 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Expenses: |
||||||||||||||||||||
| Depreciation and amortization |
142,549 | (16,470) | 126,079 | 126,079 | ||||||||||||||||
| Operating |
99,540 | (8,843) | 90,697 | $ | (771) | 89,926 | ||||||||||||||
| Real estate taxes, net |
67,346 | (7,457) | 59,889 | 59,889 | ||||||||||||||||
| Impairment loss |
34,983 | 34,983 | 34,983 | |||||||||||||||||
| General and administrative |
25,921 | (56) | 25,865 | (380) | 25,485 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
370,339 | (32,826) | 337,513 | (1,151) | 336,362 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Income |
181,887 | (18,594) | 163,293 | 1,151 | 164,444 | |||||||||||||||
| Interest Expense, net |
(152,041) | 754 | (151,287) | 1,685 | (149,602) | |||||||||||||||
| Interest and Other Income, net |
11,425 | 11,425 | 11,425 | |||||||||||||||||
| Gain on Redemption of Convertible Senior Unsecured Notes |
25,311 | 25,311 | 25,311 | |||||||||||||||||
| Equity in Earnings of Real Estate Joint Ventures and Partnerships, net |
5,548 | 5,548 | 5,548 | |||||||||||||||||
| Gain on Land and Merchant Development Sales |
18,688 | (732) | 17,956 | 17,956 | ||||||||||||||||
| Provision for Income Taxes |
(6,269) | 251 | (6,018) | (6,018) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income from Continuing Operations |
84,549 | (18,321) | 66,228 | 2,836 | 69,064 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating Income from Discontinued Operations |
9,696 | 18,321 | 28,017 | (17,750) | 10,267 | |||||||||||||||
| Gain on Sale of Property from Discontinued Operations |
55,765 | (3) | 55,762 | 55,762 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income from Discontinued Operations |
65,461 | 18,318 | 83,779 | (17,750) | 66,029 | |||||||||||||||
| Gain on Sale of Property |
25,266 | 3 | 25,269 | 25,269 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Income |
175,276 | - | 175,276 | (14,914) | 160,362 | |||||||||||||||
| Less: Net Income Attributable to Noncontrolling Interests |
(4,174) | (4,174) | (4,174) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Income Adjusted for Noncontrolling Interests |
171,102 | - | 171,102 | (14,914) | 156,188 | |||||||||||||||
| Dividends on Preferred Shares |
(35,476) | (35,476) | (35,476) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Income Attributable to Common Shareholders |
$ | 135,626 | $ | - | $ | 135,626 | $ | (14,914) | $ | 120,712 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Earnings Per Common Share – Basic: |
||||||||||||||||||||
| Income from continuing operations attributable to common shareholders |
$ | 0.64 | $ | (0.17) | $ | 0.47 | $ | 0.03 | $ | 0.50 | ||||||||||
| Income from discontinued operations |
0.60 | 0.17 | 0.77 | (0.17) | 0.60 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income attributable to common shareholders |
$ | 1.24 | $ | - | $ | 1.24 | $ | (0.14) | $ | 1.10 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Earnings Per Common Share – Diluted: |
||||||||||||||||||||
| Income from continuing operations attributable to common shareholders |
$ | 0.64 | $ | (0.17) | $ | 0.47 | $ | 0.03 | $ | 0.50 | ||||||||||
| Income from discontinued operations |
0.59 | 0.17 | 0.76 | (0.16) | 0.60 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income attributable to common shareholders |
$ | 1.23 | $ | - | $ | 1.23 | $ | (0.13) | $ | 1.10 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Comprehensive Income: |
||||||||||||||||||||
| Net income |
$ | 175,276 | $ | - | $ | 175,276 | $ | (14,914) | $ | 160,362 | ||||||||||
| Amortization of loss on derivatives |
2,481 | 2,481 | 2,481 | |||||||||||||||||
| Retirement liability adjustment |
3,237 | 3,237 | 3,237 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Comprehensive Income |
180,994 | - | 180,994 | (14,914) | 166,080 | |||||||||||||||
| Comprehensive Income Attributable to Noncontrolling Interests |
(4,174) | (4,174) | (4,174) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Comprehensive Income Adjusted for Noncontrolling Interests |
$ | 176,820 | $ | - | $ | 176,820 | $ | (14,914) | $ | 161,906 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
See Accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.
6
Weingarten Realty Investors
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
Pro Forma Adjustments
The following pro forma adjustments are included in the unaudited pro forma condensed consolidated balance sheet and/or the unaudited pro forma condensed consolidated statements of operations and comprehensive income:
| a) | Reflects our consolidated balance sheet as of March 31, 2012, as contained in the historical financial statements and notes thereto presented in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2012. |
| b) | The pro forma adjustments represent: |
| • | The elimination of the assets and liabilities of the 52 industrial properties sold as if the Sale had occurred on March 31, 2012. |
| • | The receipt of proceeds of approximately $271.4 million, net of adjustments and selling costs of approximately $8.0 million, mortgages assumed by the buyer of approximately $4.8 million, mortgages satisfied of $3.7 million and escrows of $94.5 million as of the date of Sale. |
| • | The application of the net cash proceeds received in connection with the Sale. For purposes of the pro forma adjustment, it is assumed that net cash proceeds are used to repay amounts outstanding under our unsecured revolving credit facilities and a $200 million term loan. Proceeds of $94.5 million related to five industrial properties are assumed to be placed in escrow held by a qualified intermediary in anticipation of the acquisition of replacement properties in tax-free exchanges under Section 1031 of the Internal Revenue Code. |
| • | A Texas franchise tax accrual of $.2 million and other expense accruals of $3.4 million representing nonrecurring costs, primarily costs directly related to the closing of the Sale including estimated severance payments, which will be included in our statements of operations within the 12 months following the closing. |
| c) | Reflects our unaudited condensed consolidated statement of operations and comprehensive income as of March 31, 2012, as contained in the historical financial statements and notes thereto presented in the Quarterly Report on Form 10-Q for the three months ended March 31, 2012, which presented the results of operations of the 52 industrial properties sold in the Sale as discontinued operations. |
| d) | The pro forma adjustments represent: |
| • | The estimated reduction in interest expense had our unsecured $200 million term loan and unsecured revolving credit facilities been repaid with the proceeds from the Sale. The interest savings in each year varies based upon the amounts outstanding under the revolving credit facilities and term loan in each respective year, and the consolidated statement of operations and comprehensive income does not assume any interest income on the estimated net cash proceeds from the Sale. |
| • | An estimated reduction in management overhead and general and administrative expenses related primarily to a reduction in salary expense as a result of the Sale. |
| • | The elimination of the income ands expense associated with the 52 industrial properties sold as if the Sale had occurred on January 1, 2009. |
| e) | Reflects our consolidated statement of operations and comprehensive income as of December 31, 2011, 2010 and 2009, as contained in the historical financial statements and notes thereto presented in our Annual Report on Form 10-K for the year ended December 31, 2011. |
| f) | Reflects income and expense items related to 58 properties, including the 52 properties included in the Sale that were reported in discontinued operations during the three months ended March 31, 2012 and will be reflected as discontinued operations in future historical financial statements. |
7