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Section 1: 8-K (8-K)

Document


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): April 29, 2019

WEINGARTEN REALTY INVESTORS
(Exact name of registrant as specified in its charter)
Texas
1-9876
74-1464203
(State or other jurisdiction of
incorporation)
(Commission File Number)
(I.R.S. Employer
Identification No.)
2600 Citadel Plaza Drive, Suite 125, Houston, Texas 77008
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 866-6000
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
 





Item 2.02.    Results of Operations and Financial Condition.

On April 29, 2019, we issued a press release describing our results of operations for the quarter ended March 31, 2019, as well as providing supplemental financial information pertaining to our operations. The press release and supplemental financial information are attached as Exhibit 99.1 to this report.

The information, including exhibits hereto, in this Current Report on Form 8-K is being furnished and shall not be deemed "filed" with the Securities and Exchange Commission and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

Item 9.01.    Financial Statements and Exhibits.

99.1
Supplemental Financial Information at March 31, 2019 (including press release dated April 29, 2019).

2



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 30, 2019

 
WEINGARTEN REALTY INVESTORS
 
 
 
 
 
 
 
 
 
By:
/s/ Joe D. Shafer
 
 
 
Joe D. Shafer
 
 
 
Senior Vice President/
Chief Accounting Officer
 


3



INDEX TO EXHIBITS

99.1
Supplemental Financial Information at March 31, 2019 (including press release dated April 29, 2019).

4
(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


Exhibit 99.1
397732857_supplementalcover2019q1.jpg






397732857_wrisupplementallogo122018a02.jpg
 
 
 
Table of Contents
Page
Quarterly Earnings Press Release
i - xi
Company Information
1
 
 
 
Financial Summary
 
 
Condensed Consolidated Statements of Income
3
 
Condensed Consolidated Balance Sheets
4
 
Funds From Operations Attributable to Common Shareholders
5
 
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate and Net Debt to Core EBITDAre
6
 
Supplemental Income Statement Detail
7
 
Supplemental Balance Sheet Detail
8
 
Capitalization and Debt Coverage Ratios
9
 
Guidance
10
 
 
 
Investment Activity
 
 
Capital Expenditures
12
 
Development and Redevelopment Projects
13
 
Land Held for Development
14
 
Acquisition and Disposition Summary
15
 
 
 
Summary of Debt
 
 
Debt Information
17
 
Debt Information Additional Disclosure
18
 
Schedule of Maturities
19
 
Schedule of Maturities Additional Disclosure
20
 
 
 
Joint Ventures
 
 
Unconsolidated Joint Venture Financial Information at 100%
22
 
Unconsolidated Joint Venture Financial Information at Pro rata Share
23
 
Investments in Unconsolidated Real Estate Joint Ventures & Partnerships at 100%
24
 
Unconsolidated Joint Venture Mortgage Debt Information at 100%
25
 
Unconsolidated Joint Venture Mortgage Debt Information Additional Disclosure
26
 
 
 
Portfolio Summary
 
 
Tenant Diversification by Percent of Base Minimum Rent
28
 
Portfolio Operating Information
29 - 30
 
Top 40 Core-Based Statistical Area (CBSA) Ranked by Population
31
 
 
 
Property Listing
 
 
Summary Property Listing
33
 
Property Listing
34 - 42
 
 
 
Other Topics of Interest
 
 
New Lease Guidance Implementation
44
 
 
 
Corporate Profile
 
 
 
 
Weingarten Realty Investors is a real estate investment trust organized under the Texas Business Organizations Code that, through its predecessor entity, began the ownership and development of shopping centers and other commercial real estate in 1948. As of March 31, 2019, we owned or operated under long-term leases, interests in 177 properties which are located in 17 states that span the United States from coast to coast. These properties represent approximately 34.6 million square feet of which our interests in these properties aggregated approximately 22.6 million square feet of leasable area. Our properties were 94.3% leased as of March 31, 2019, and historically our portfolio occupancy rate has never been below 90%.
 
 
 
 
 
www.weingarten.com
 



397732857_wriedgarpressrelease.jpg
2600 Citadel Plaza Drive
P.O. Box 924133
Houston, Texas 77292-4133

NEWS RELEASE

Information: Michelle Wiggs, Phone: (713) 866-6050

WEINGARTEN REALTY
REPORTS STRONG SAME PROPERTY NET OPERATING INCOME

HOUSTON, April 29, 2019 (BUSINESS WIRE) -- Weingarten Realty (NYSE: WRI) announced today the results of its operations for the quarter ended March 31, 2019. The supplemental financial package with additional information can be found on the Company's website under the Investor Relations tab.

First Quarter Operating and Financial Highlights

Net income attributable to common shareholders (“Net Income”) for the quarter was $0.39 per diluted share (hereinafter “per share”) compared to $1.13 per share in the same quarter of 2018;

Core Funds From Operations Attributable to Common Shareholders ("Core FFO") for the quarter was $0.52 per share compared to $0.57 per share a year ago;

Same Property Net Operating Income (“SPNOI”) including redevelopments increased 3.2% over the same quarter of the prior year;

Investments in acquisitions of $20.3 million; and

Dispositions for the quarter totaled $67 million.

Financial Results

The Company reported Net Income of $49.7 million or $0.39 per share for the first quarter of 2019, as compared to $146.8 million or $1.13 per share for the same period in 2018. This decrease was due primarily to lower gains on sales of properties due to reduced disposition activity during 2019.

Effective this quarter, the Company adopted the new standard issued by the Financial Accounting Standards Board, ASU 2016-02, “Leases.” Among the changes required under this new ASU are the following:

Indirect, internally-generated leasing and legal costs are no longer capitalized which resulted in an increase in general and administrative expenses of approximately $2.3 million for the quarter;
Real estate taxes paid directly by tenants are no longer included in revenues and expenses in the Company’s consolidated financial statements. Real estate taxes paid directly by tenants totaled $1.2 million during the first quarter of 2018;
Ground leases where the Company is the lessee were recorded on the balance sheet and were amortized accordingly to rent expense; and,
New guidelines for assessing the collectability of accounts receivable and the related presentation were implemented.

Page i





This standard was adopted on a modified retrospective approach; therefore, prior year amounts were not restated. Further details of these issues are included on page 44 of our Supplemental.

Funds From Operations attributable to common shareholders in accordance with the newly revised National Association of Real Estate Investment Trusts definition (“NAREIT FFO”) was $67.3 million or $0.52 per share for the first quarter of 2019 compared to $78.3 million or $0.60 per share for 2018.

Core FFO for the quarter ended March 31, 2019 was the same as NAREIT FFO at $67.3 million or $0.52 per share compared to $74.7 million or $0.57 per share for the same quarter of last year. Key factors that effected this change of $0.05 per share from this year to last year are:

Disposition activity of $0.03 per share;
Increase of $0.02 per share for indirect leasing and legal costs expensed in accordance with the new leasing standard;
Non-cash expense increase of $0.02 per share of compensation expense due to lower valuations of our restricted shares for incentive compensation purposes offset by other reductions in overhead; and,
Increased SPNOI and other factors.

Effective this quarter, the Company adopted the updated definition of NAREIT FFO and will exclude gains or losses on the sale of land parcels and securities which were previously not adjusted in NAREIT FFO. Prior period NAREIT FFO amounts have not been restated.

Reconciliations of Net Income to NAREIT FFO and Core FFO are included herein.

Operating Results

For the period ending March 31, 2019, the Company’s operating highlights were as follows:

 
Q1 2019
Occupancy (Signed Basis):
 
Occupancy - Total
94.3%
Occupancy - Small Shop Spaces
90.3%
Occupancy - Same Property Portfolio
94.5%
 
 
Same Property Net Operating Income, with redevelopments
3.2%
 
 
Rental Rate Growth - Total:
3.7%
New Leases
11.5%
Renewals
2.0%
 
 
Leasing Transactions:
 
Number of New Leases
65
New Leases - Annualized Revenue (in millions)
$4.6
Number of Renewals
145
Renewals - Annualized Revenue (in millions)
$13.4

A reconciliation of Net Income to SPNOI is included herein.


Page ii




“Operationally, we had a solid quarter with strong Same Store results of 3.2%. However, rent growth for the quarter was below the recent norms. Our new leases produced strong increases of 11.5%; however, our renewals averaged only 2%. While shop renewals were a healthy 7%, a few box renewals where the tenant had significant negotiating leverage led to a decrease of 3% for boxes. Looking ahead to the rest of 2019, we expect to produce rent growth in the mid-to-high single digits for the rest of 2019,” said Johnny Hendrix, Executive Vice President and Chief Operating Officer.

Portfolio Activity

During the quarter, the Company purchased Madison Village in Central Phoenix, Arizona at Seventh and Glendale for $20.3 million. The center is anchored by a Safeway that produces extremely strong sales and is located in a densely populated area of Phoenix with 140,000 people within a three-mile radius. With 40,000 square feet of shop space, focused leasing efforts to improve the tenancy should produce strong growth over the next couple of years.

The Company closed $67 million of dispositions with the sale of three shopping centers including Reynolds Crossing and Brookwood Marketplace, both in suburban Atlanta, Georgia and Waterford Village in Leland, North Carolina. The Company also sold one land parcel.

In addition, the Company invested $44 million in new developments and redevelopments during the first quarter. The majority of the investment is in its two projects in the Washington D.C. area and its 30-story residential tower at its River Oaks Shopping Center in Houston.

“We are pleased to begin 2019 with the acquisition of a solid grocery anchored center with outstanding sales and great upside. Our two mixed-use developments in D.C. area are progressing nicely and will be successful, valuable real estate projects and our significantly transformed existing portfolio produced outstanding same property NOI of 3.2%. All of these factors should contribute to solid gains for our shareholders,” said Drew Alexander, Chairman, President and Chief Executive Officer.

Balance Sheet

The Company continues to maintain one of the strongest balance sheets in its sector and proceeds from the Company’s recent dispositions were used to further strengthen its financial position. Net Debt to Core EBITDAre was a strong 5.3 times and Debt to Total Market Capitalization was 31.9% at quarter end.

“Both Moody’s and S&P completed full credit analyses and confirmed our ratings of Baa1/BBB during the first quarter. With the strongest credit metrics we have had in many years, we are poised to take advantage of whatever opportunities may arise. Low leverage provides the flexibility to react quickly as market conditions change,” said Steve Richter, Executive Vice President and Chief Financial Officer.

2019 Guidance

As to earnings guidance, the Company affirms NAREIT FFO and Core FFO per share of a range from $2.09 to $2.17. All of the details of our guidance are included on page 10 of our Supplemental.

Dividends

The Board of Trust Managers declared a quarterly cash dividend of $0.395 per common share payable on June 14, 2019 to shareholders of record on June 7, 2019.


Page iii




Conference Call Information

The Company also announced that it will host a live webcast of its quarterly conference call on April 30, 2019 at 10:00 a.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 (888) 771-4371 (conference ID # 47857841). A replay will be available through the Company’s website starting approximately two hours following the live call.

About Weingarten Realty Investors

Weingarten Realty Investors (NYSE: WRI) is a shopping center owner, manager and developer.  At March 31, 2019, 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 177 properties which are located in 17 states spanning the country from coast to coast. These properties represent approximately 34.6 million square feet of which our interests in these properties aggregated approximately 22.6 million square feet of leasable area. 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.

Projections involve numerous assumptions such as rental income (including assumptions on percentage rent), interest rates, tenant defaults, occupancy rates, volume and pricing of properties held for disposition, volume and pricing of acquisitions, expenses (including salaries and employee costs), insurance costs and numerous other factors. Not all of these factors are determinable at this time and actual results may vary from the projected results, and may be above or below the ranges indicated. The above ranges represent management’s estimate of results based upon these assumptions as of the date of this press release. Accordingly, there is no assurance that our projections will be realized.









Page iv




Weingarten Realty Investors
(in thousands, except per share amounts)
Financial Statements
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
March 31,
 
 
 
 
2019
 
 2018 (1)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Revenues:
 
 
 
Rentals, net
$
119,826

 
$
129,148

Other
3,312

 
3,304


Total Revenues
123,138

 
132,452

Operating Expenses:
 
 
 
Depreciation and amortization
33,972

 
38,095

Operating
24,248

 
23,270

Real estate taxes, net
16,131

 
17,639

Impairment loss
74

 

General and administrative
9,581

 
5,595


Total Operating Expenses
84,006

 
84,599

Other Income (Expense):
 
 
 
Interest expense, net
(15,289
)
 
(14,672
)
Interest and other income (expense)
4,384

 
1,533

Gain on sale of property
17,787

 
109,045

Total Other Income
6,882

 
95,906

Income Before Income Taxes and Equity in Earnings of Real Estate Joint Ventures and Partnerships
46,014

 
143,759

Provision for Income Taxes
(177
)
 
(783
)
Equity in Earnings of Real Estate Joint Ventures and Partnerships, net
5,417

 
5,993

Net Income
51,254

 
148,969

Less:
Net Income Attributable to Noncontrolling Interests
(1,588
)
 
(2,145
)
Net Income Attributable to Common Shareholders -- Basic
$
49,666

 
$
146,824

Net Income Attributable to Common Shareholders -- Diluted
$
49,666

 
$
147,352

Earnings Per Common Share -- Basic
$
.39

 
$
1.15

Earnings Per Common Share -- Diluted
$
.39

 
$
1.13

______________
(1) Reclassification of prior year's amounts were made to conform to current year presentation.



Page v




Weingarten Realty Investors
(in thousands)
Financial Statements
 
 
 
 
 
 
 
 
 
 
 
March 31,
2019
 
December 31,
2018
 
 
 
 
(Unaudited)
 
(Audited)
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
ASSETS
 
 
 
Property
$
4,104,795

 
$
4,105,068

Accumulated Depreciation
(1,118,217
)
 
(1,108,188
)
Investment in Real Estate Joint Ventures and Partnerships, net
364,165

 
353,828

Unamortized Lease Costs, net
139,533

 
142,014

Accrued Rent, Accrued Contract Receivables and Accounts Receivable, net
76,900

 
97,924

Cash and Cash Equivalents
60,570

 
65,865

Restricted Deposits and Mortgage Escrows
11,134

 
10,272

Other, net
198,783

 
160,178

 
             Total Assets
$
3,837,663

 
$
3,826,961

 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Debt, net
$
1,788,551

 
$
1,794,684

Accounts Payable and Accrued Expenses
79,459

 
113,175

Other, net
209,219

 
168,403

 
Total Liabilities
2,077,229

 
2,076,262

 
 
 
 
 
 
 
Commitments and Contingencies

 

 
 
 
 
EQUITY
 
 
 
Common Shares of Beneficial Interest
3,903

 
3,893

Additional Paid-In Capital
1,777,089

 
1,766,993

Net Income Less Than Accumulated Dividends
(187,581
)
 
(186,431
)
Accumulated Other Comprehensive Loss
(10,480
)
 
(10,549
)
 
Shareholders' Equity
1,582,931

 
1,573,906

Noncontrolling Interests
177,503

 
176,793

 
             Total Liabilities and Equity
$
3,837,663

 
$
3,826,961


Page vi




Non-GAAP Financial Measures

Certain aspects of our key performance indicators are considered non-GAAP financial measures. Management uses these measures along with our Generally Accepted Accounting Principles ("GAAP") financial statements in order to evaluate our operating results. Management believes these additional measures provide users of our financial information additional comparable indicators of our industry, as well as, our performance.

Funds from Operations Attributable to Common Shareholders
Effective January 1, 2019, the National Association of Real Estate Investment Trusts ("NAREIT") defines NAREIT FFO as net income (loss) attributable to common shareholders computed in accordance with GAAP, excluding gains or losses from sales of certain real estate assets (including: depreciable real estate with land, land, development property and securities), change in control, and interests in real estate equity investments and their applicable taxes, plus depreciation and amortization related to real estate and impairment of certain real estate assets and in substance real estate equity investments, including our share of unconsolidated real estate joint ventures and partnerships. The Company calculates NAREIT FFO in a manner consistent with the NAREIT definition.

Management believes NAREIT FFO is a widely recognized measure of REIT operating performance which provides our shareholders with a relevant basis for comparison among other REITs. Management uses NAREIT FFO as a supplemental internal measure to conduct and evaluate our business because there are certain limitations associated with using GAAP net income by itself as the primary measure of our operating performance. Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, management believes that the presentation of operating results for real estate companies that uses historical cost accounting is insufficient by itself. There can be no assurance that NAREIT FFO presented by the Company is comparable to similarly titled measures of other REITs.

The Company also presents Core FFO as an additional supplemental measure as it is more reflective of the core operating performance of our portfolio of properties. Core FFO is defined as NAREIT FFO excluding charges and gains related to non-cash, non-operating assets and other transactions or events that hinder the comparability of operating results. Specific examples of items excluded from Core FFO include, but are not limited to, gains or losses associated with the extinguishment of debt or other liabilities and transactional costs associated with development activities. NAREIT FFO and Core FFO should not be considered as alternatives to net income or other measurements under GAAP as indicators of operating performance or to cash flows from operating, investing or financing activities as measures of liquidity. NAREIT FFO and Core FFO do not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness.


Page vii




NAREIT FFO and Core FFO is calculated as follows (in thousands):
 
Three Months Ended
March 31,
 
2019
 
2018
 
(Unaudited)
Net income attributable to common shareholders
$
49,666

 
$
146,824

Depreciation and amortization of real estate
33,743

 
37,765

Depreciation and amortization of real estate of unconsolidated real estate joint ventures and partnerships
2,952

 
3,184

Impairment of properties and real estate equity investments
74

 

(Gain) on sale of property, investment securities and interests in real estate equity investments
(18,949
)
 
(109,038
)
(Gain) on dispositions of unconsolidated real estate joint ventures and partnerships
(274
)
 
(2,363
)
Provision for income taxes (1)

 
161

Noncontrolling interests and other (2)
(489
)
 
1,210

NAREIT FFO – basic (3)
66,723

 
77,743

Income attributable to operating partnership units
528

 
528

NAREIT FFO – diluted (3)
67,251

 
78,271

Adjustments to Core FFO:
 
 
 
(Gain) on extinguishment of debt including related swap activity

 
(3,557
)
Core FFO – diluted
$
67,251

 
$
74,714

 
 
 
 
FFO weighted average shares outstanding – basic
127,756

 
127,926

Effect of dilutive securities:
 
 
 
Share options and awards
834

 
781

Operating partnership units
1,432

 
1,432

FFO weighted average shares outstanding – diluted
130,022

 
130,139

 
 
 
 
NAREIT FFO per common share – basic
$
.52

 
$
.61

 
 
 
 
NAREIT FFO per common share – diluted
$
.52

 
$
.60

 
 
 
 
Core FFO per common share – diluted
$
.52

 
$
.57

________________________________________________________________________________________________________________________________

(1) The applicable taxes related to gains and impairments of properties.
(2) Related to gains, impairments and depreciation on operating properties and unconsolidated real estate joint ventures, where applicable.
(3) 2019 Nareit FFO is presented in accordance with 2018 Restatement of "Nareit's Funds from Operations White Paper."


Page viii




Same Property Net Operating Income
Management considers SPNOI an important additional financial measure because it reflects only those income and expense items that are incurred at the property level and when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates and operating costs. The Company calculates this most useful measurement by determining our proportional share of SPNOI from all owned properties, including the Company’s share of SPNOI from unconsolidated joint ventures and partnerships, which cannot be readily determined under GAAP measurements and presentation. Although SPNOI (see page 1 of the supplemental disclosure regarding this presentation and limitations thereof) is a widely used measure among REITs, there can be no assurance that SPNOI presented by the Company is comparable to similarly titled measures of other REITs. Additionally, the Company does not control these unconsolidated joint ventures and partnerships, and the assets, liabilities, revenues or expenses of these joint ventures and partnerships, as presented, do not represent its legal claim to such items.
Properties are included in the SPNOI calculation if they are owned and operated for the entirety of the most recent two fiscal year periods, except for properties for which significant redevelopment or expansion occurred during either of the periods presented, and properties that have been sold. While there is judgment surrounding changes in designations, management moves new development and redevelopment properties once they have stabilized, which is typically upon attainment of 90% occupancy. A rollforward of the properties included in the Company’s same property designation is as follows:

 
Three Months Ended
March 31, 2019
Beginning of the period
171

Properties added:
 
New Developments
1

Properties removed:
 
Dispositions
(4
)
End of the period
168



Page ix




We calculate SPNOI using net income attributable to common shareholders excluding net income attributable to noncontrolling interests, other income (expense), income taxes and equity in earnings of real estate joint ventures and partnerships. Additionally to reconcile to SPNOI, we exclude the effects of property management fees, certain non-cash revenues and expenses such as straight-line rental revenue and the related reversal of such amounts upon early lease termination, depreciation and amortization, impairment losses, general and administrative expenses and other items such as lease cancellation income, environmental abatement costs, demolition expenses and lease termination fees. Consistent with the capital treatment of such costs under GAAP, tenant improvements, leasing commissions and other direct leasing costs are excluded from SPNOI. A reconciliation of net income attributable to common shareholders to SPNOI is as follows (in thousands):
 
Three Months Ended
March 31,
 
2019
 
2018
 
(Unaudited)
Net income attributable to common shareholders
$
49,666

 
$
146,824

Add:
 
 
 
Net income attributable to noncontrolling interests
1,588

 
2,145

Provision for income taxes
177

 
783

Interest expense, net
15,289

 
14,672

Property management fees
873

 
867

Depreciation and amortization
33,972

 
38,095

Impairment loss
74

 

General and administrative
9,581

 
5,595

Other (1)
444

 
89

Less:
 
 
 
Gain on sale of property
(17,787
)
 
(109,045
)
Equity in earnings of real estate joint ventures and partnership interests, net
(5,417
)
 
(5,993
)
Interest and other income/expense
(4,384
)
 
(1,533
)
Revenue adjustments (2)
(3,219
)
 
(3,932
)
Adjusted income
80,857

 
88,567

Less: Adjusted income related to consolidated entities not defined as same property and noncontrolling interests
44

 
(10,511
)
Add: Pro rata share of unconsolidated entities defined as same property
8,308

 
8,374

Same Property Net Operating Income
89,209

 
86,430

Less: Redevelopment Net Operating Income
(7,793
)
 
(7,084
)
Same Property Net Operating Income excluding Redevelopments
$
81,416

 
$
79,346

___________________
(1)
Other includes items such as environmental abatement costs, demolition expenses and lease termination fees.
(2)
Revenue adjustments consist primarily of straight-line rentals, lease cancellation income and fee income primarily from real estate joint ventures and partnerships.

Page x




Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate
NAREIT defines EBITDAre as net income computed in accordance with GAAP, plus interest expense, income tax expense (benefit), depreciation and amortization and impairment of depreciable real estate and in substance real estate equity investments; plus or minus gains or losses from sales of certain real estate assets and interests in real estate equity investments; and adjustments to reflect our share of unconsolidated real estate joint ventures and partnerships for these items. The Company calculates EBITDAre in a manner consistent with the NAREIT definition.
As mentioned above, NAREIT FFO is a widely recognized measure of REIT operating performance which provides our shareholders with a relevant basis for comparing earnings performance among other REITs based upon the unique capital structure of each REIT. However as a basis of comparability that is independent of a company's capital structure, management believes that since EBITDA is a widely known and understood measure of performance, EBITDAre will represent an additional supplemental non-GAAP performance measure that will provide investors with a relevant basis for comparing REITs. There can be no assurance that EBITDAre as presented by the Company is comparable to similarly titled measures of other REITs.
The Company also presents Core EBITDAre as an additional supplemental measure as it is more reflective of the core operating performance of our portfolio of properties. Core EBITDAre is defined as NAREIT EBITDAre excluding charges and gains related to non-cash and non-operating transactions and other events that hinder the comparability of operating results. Specific examples of items excluded from Core EBITDAre include, but are not limited to, gains or losses associated with the extinguishment of debt or other liabilities, and transactional costs associated with development activities. EBITDAre and Core EBITDAre should not be considered as alternatives to net income or other measurements under GAAP as indicators of operating performance or to cash flows from operating, investing or financing activities as measures of liquidity. EBITDAre and Core EBITDAre do not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness.
EBITDAre and Core EBITDAre is calculated as follows (in thousands):
 
Three Months Ended
March 31,
 
2019
 
2018
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre):
 
 
 
Net income
$
51,254

 
$
148,969

Interest expense, net (1)
15,289

 
14,672

Provision for income taxes
177

 
783

Depreciation and amortization of real estate
33,972

 
38,095

Impairment loss on operating properties and real estate equity investments
74

 

Gain on sale of property and investment securities (2)
(18,970
)
 
(109,045
)
EBITDAre adjustments of unconsolidated real estate joint ventures and partnerships, net (3)
3,624

 
2,488

Total EBITDAre
85,420

 
95,962

Total Core EBITDAre
$
85,420

 
$
95,962

(1) Includes a $3.8 million gain on extinguishment of debt including related swap activity for the three months ended March 31, 2018.
(2) Includes a $.2 million gain on sale of non-operating assets for the three months ended March 31, 2019.
(3) Includes a $.3 million gain on sale of non-operating assets for the three months ended March 31, 2019 and a $.2 million loss on extinguishment of debt for the three months ended March 31, 2018.

Page xi



Weingarten Realty Investors
Company Information



Corporate Office
 
 
 
2600 Citadel Plaza Drive
 
P. O. Box 924133
 
Houston, TX 77292-4133
 
713-866-6000
 
www.weingarten.com
 
 
 
Stock Listings
 
 
 
New York Stock Exchange:
 
Common Shares
WRI
 
 

Forward-Looking Statements
This supplement, together with other statements and information publicly disseminated by us, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. These forward-looking statements relate to the company’s intentions, beliefs, expectations or projections of the future. It is important to note that the company’s actual results could differ materially from those projected in such forward-looking statements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: (i) disruptions in financial markets, (ii) general economic and local real estate conditions, (iii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or general downturn in their business, (iv) financing risks, such as the inability to obtain equity, debt, or other sources of financing on favorable terms and changes in LIBOR availability, (v) changes in governmental laws and regulations, (vi) the level and volatility of interest rates, (vii) the availability of suitable acquisition opportunities, (viii) the ability to dispose of properties, (ix) changes in expected development activity, (x) increases in operating costs, (xi) tax matters, including the effect of changes in the tax laws and the failure to qualify as a real estate investment trust, and (xii) investments through real estate joint ventures and partnerships, which involve risks not present in investments in which we are the sole investor. Accordingly, there is no assurance that our expectations will be realized.

Pro rata Financial Information
Included herein is certain financial information presented on a pro rata share basis as we believe this information assists users of our financial information in understanding our proportionate economic interest in the operating results of our portfolio of properties. Such amounts include WRI’s proportional share of each financial line item or operational metric for both our consolidated and unconsolidated joint ventures and partnerships. Multiplying a financial statement line item or operational metric of an investee and adding it to WRI’s totals may not accurately depict the legal and economic implications of holding a non-controlling interest in the investee, nor does WRI control any of the investees presented under the equity method of accounting. Pro rata financial information is not, and is not intended to be, a presentation in accordance with generally accepted accounting principles.





Page 1













Financial Summary




Weingarten Realty Investors
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)

 
Three Months Ended
March 31,
 
Twelve Months Ended December 31,
 
2019
 
2018(1)
 
2018(1)
 
2017(1)
 
2016(1)
 
2015(1)
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Rentals, net
$
119,826

 
$
129,148

 
$
517,836

 
$
563,183

 
$
540,141

 
$
504,724

Other
3,312

 
3,304

 
13,311

 
9,980

 
9,414

 
8,120

Total Revenues
123,138

 
132,452

 
531,147

 
573,163

 
549,555

 
512,844

Operating Expenses:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
33,972

 
38,095

 
161,838

 
167,101

 
162,535

 
145,940

Operating
24,248

 
23,270

 
90,554

 
109,310

 
98,855

 
94,244

Real estate taxes, net
16,131

 
17,639

 
69,268

 
75,636

 
66,358

 
60,289

Impairment loss
74

 

 
10,120

 
15,257

 
98

 
153

General and administrative
9,581

 
5,595

 
25,040

 
28,052

 
26,607

 
27,367

Total Operating Expenses
84,006

 
84,599

 
356,820

 
395,356

 
354,453

 
327,993

Other Income (Expense):


 


 


 


 


 


Interest expense, net
(15,289
)
 
(14,672
)
 
(63,348
)
 
(80,326
)
 
(83,003
)
 
(87,783
)
Interest and other income (expense)
4,384

 
1,533

 
2,807

 
7,532

 
1,910

 
4,406

Gain on sale of property
17,787

 
109,045

 
207,865

 
218,611

 
100,714

 
59,621

Gain on sale and acquisition of real estate joint venture and partnership interests

 

 

 

 
48,322

 
879

Total Other Income (Expense)
6,882

 
95,906

 
147,324

 
145,817

 
67,943

 
(22,877
)
Income Before Income Taxes and Equity in Earnings of Real Estate Joint Ventures and Partnerships
46,014

 
143,759

 
321,651

 
323,624

 
263,045

 
161,974

(Provision) Benefit for Income Taxes
(177
)
 
(783
)
 
(1,378
)
 
17

 
(6,856
)
 
(52
)
Equity in Earnings of Real Estate Joint Ventures and Partnerships, net (2)
5,417

 
5,993

 
25,070

 
27,074

 
20,642

 
19,300

Net Income
51,254

 
148,969

 
345,343

 
350,715

 
276,831

 
181,222

Less: Net Income Attributable to Noncontrolling Interests
(1,588
)
 
(2,145
)
 
(17,742
)
 
(15,441
)
 
(37,898
)
 
(6,870
)
Net Income Adjusted for Noncontrolling Interests
49,666

 
146,824

 
327,601

 
335,274

 
238,933

 
174,352

Dividends on Preferred Shares

 

 

 

 

 
(3,830
)
Redemption Costs of Preferred Shares

 

 

 

 

 
(9,687
)
Net Income Attributable to Common Shareholders
$
49,666

 
$
146,824

 
$
327,601

 
$
335,274

 
$
238,933

 
$
160,835

Earnings Per Common Share - Basic
$
0.39

 
$
1.15

 
$
2.57

 
$
2.62

 
$
1.90

 
$
1.31

Earnings Per Common Share - Diluted
$
0.39

 
$
1.13

 
$
2.55

 
$
2.60

 
$
1.87

 
$
1.29

(1)
Reclassification of prior year's amounts were made to conform to the current year presentation.
(2)
See page 23 for the Company’s pro rata share of the operating results of its unconsolidated real estate joint ventures and partnerships.

Page 3



Weingarten Realty Investors
Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)

 
March 31,
2019
 
December 31,
2018
 
 
 
 
ASSETS
 
 
 
Property
$
4,104,795

 
$
4,105,068

Accumulated Depreciation
(1,118,217
)
 
(1,108,188
)
Property, net
2,986,578

 
2,996,880

 
 
 
 
Investment in Real Estate Joint Ventures and Partnerships, net (1)
364,165

 
353,828

Total
3,350,743

 
3,350,708

 
 
 
 
Unamortized Lease Costs, net
139,533

 
142,014

Accrued Rent, Accrued Contract Receivables and Accounts Receivable (net of
  allowance for doubtful accounts of $6,855 in 2018)
76,900

 
97,924

Cash and Cash Equivalents
60,570

 
65,865

Restricted Deposits and Mortgage Escrows
11,134

 
10,272

Other, net
198,783

 
160,178

Total Assets
$
3,837,663

 
$
3,826,961

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Debt, net
$
1,788,551

 
$
1,794,684

Accounts Payable and Accrued Expenses
79,459

 
113,175

Other, net
209,219

 
168,403

Total Liabilities
2,077,229

 
2,076,262

 
 
 
 
Commitments and Contingencies

 

 
 
 
 
Equity:
 
 
 
Shareholders' Equity:
 
 
 
Common Shares of Beneficial Interest - par value, $.03 per share;
 shares authorized: 275,000; shares issued and outstanding:
 128,647 in 2019 and 128,333 in 2018
3,903

 
3,893

Additional Paid-In Capital
1,777,089

 
1,766,993

Net Income Less Than Accumulated Dividends
(187,581
)
 
(186,431
)
Accumulated Other Comprehensive Loss
(10,480
)
 
(10,549
)
Total Shareholders' Equity
1,582,931

 
1,573,906

Noncontrolling Interests
177,503

 
176,793

Total Equity
1,760,434

 
1,750,699

Total Liabilities and Equity
$
3,837,663

 
$
3,826,961

(1)
This represents the Company’s investment of its unconsolidated real estate joint ventures and partnerships. See page 23 for additional information.


Page 4



Weingarten Realty Investors
Funds From Operations Attributable to Common Shareholders
(in thousands, except per share amounts)
 
Three Months Ended
March 31,
 
2019
 
2018
Funds From Operations Attributable to Common Shareholders (FFO)
 
 
 
Numerator:
 
 
 
Net income attributable to common shareholders
$
49,666

 
$
146,824

Depreciation and amortization of real estate
33,743

 
37,765

Depreciation and amortization of real estate of unconsolidated real estate joint ventures and partnerships
2,952

 
3,184

Impairment of properties and real estate equity investments
74

 

(Gain) on sale of property, investment securities and interests in real estate equity investments
(18,949
)
 
(109,038
)
(Gain) on dispositions of unconsolidated real estate joint ventures and partnerships
(274
)
 
(2,363
)
Provision for income taxes (1)

 
161

Noncontrolling interests and other (2)
(489
)
 
1,210

NAREIT FFO - Basic (3)
66,723

 
77,743

Income attributable to operating partnership units
528

 
528

NAREIT FFO - Diluted (3)
67,251

 
78,271

Adjustments for Core FFO:
 
 
 
(Gain) on extinguishment of debt including related swap activity

 
(3,557
)
Core FFO - Diluted
$
67,251

 
$
74,714

 
 
 
 
Denominator:
 
 
 
FFO weighted average number of common shares outstanding - Basic
127,756

 
127,926

Effect of dilutive securities:
 
 
 
Share options and awards
834

 
781

Operating partnership units
1,432

 
1,432

FFO weighted average number of common shares outstanding - Diluted
130,022

 
130,139

 
 
 
 
NAREIT FFO Per Common Share - Basic
$
0.52

 
$
0.61

 
 
 
 
NAREIT FFO Per Common Share - Diluted
$
0.52

 
$
0.60

Adjustments for Core FFO per common share:
 
 
 
(Gain) on extinguishment of debt including related swap activity

 
(0.03
)
Core FFO Per Common Share - Diluted
$
0.52

 
$
0.57

 
 
 
 

(1)
The applicable taxes related to gains and impairments of properties.
(2)
Related to gains, impairments and depreciation on operating properties and unconsolidated real estate joint ventures, where applicable.
(3)
2019 Nareit FFO is presented in accordance with 2018 Restatement of "Nareit's Funds from Operations White Paper."


Page 5



Weingarten Realty Investors
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate and Net Debt to Core EBITDAre
(in thousands)
 
Three Months Ended
March 31,
 
Three Months Ended
December 31,
 
2019
 
2018
 
2018
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre):
 
 
 
 
 
Net income
$
51,254

 
$
148,969

 
$
63,229

Interest expense, net (1)
15,289

 
14,672

 
15,663

Provision for income taxes
177

 
783

 
10

Depreciation and amortization of real estate
33,972

 
38,095

 
35,280

Impairment loss on operating properties and real estate equity investments
74

 

 
7,722

Gain on sale of property and investment securities (2)
(18,970
)
 
(109,045
)
 
(34,788
)
EBITDAre adjustments of unconsolidated real estate joint ventures and partnerships, net (3)
3,624

 
2,488

 
3,874

Total EBITDAre
85,420

 
95,962

 
90,990

Adjustments for Core EBITDAre:
 
 
 
 
 
Other

 

 
(50
)
Total Core EBITDAre
$
85,420

 
$
95,962

 
$
90,940

 
 
 
 
 
 
Net Debt to Core EBITDAre:
 
 
 
 
 
Debt
$
1,788,551

 
$
1,928,570

 
$
1,794,684

Less: Cash and cash equivalents
(60,570
)
 
(88,238
)
 
(65,865
)
Add: Proportional share of net debt of unconsolidated real estate joint ventures and partnerships
88,456

 
100,224

 
89,199

Total Net Debt
$
1,816,437

 
$
1,940,556

 
$
1,818,018

 
 
 
 
 
 
Annualized Core EBITDAre
$
341,680

 
$
383,848

 
$
363,760

 
 
 
 
 
 
Net Debt to Core EBITDAre
5.32

 
5.06

 
5.00

 
 
 
 
 
 

(1)
Includes a $3.8 million gain on extinguishment of debt including related swap activity for the three months ended March 31, 2018.
(2)
Includes a $.2 million gain on sale of non-operating assets for the three months ended March 31, 2019. Also includes a $.1 million gain on sale of non-operating assets for the three months ended December 31, 2018.
(3)
Includes a $.3 million gain on sale of non-operating assets for the three months ended March 31, 2019 and a $.2 million loss on extinguishment of debt for the three months ended March 31, 2018.


Page 6



Weingarten Realty Investors
Supplemental Income Statement Detail
(in thousands)
 
Three Months Ended
March 31,
 
2019
 
2018
Rentals, net
 
 
 
Fixed Payments:
 
 
 
Base minimum rent, net
$
89,353

 
$
97,265

Straight line rent
972

 
1,320

Over/Under-market rentals, net
660

 
766

Variable Payments:
 
 
 
Percentage rent
702

 
725

Tenant reimbursements
27,817

 
28,653

Other rental revenues
295

 
287

Lease cancellation revenue
27

 
132

Total
$
119,826

 
$
129,148

 
 
 
 
Other Revenues
 
 
 
Customer contract revenue
$
2,579

 
$
2,552

Miscellaneous revenue
733

 
752

Total
$
3,312

 
$
3,304

 
 
 
 
Interest Expense, net
 
 
 
Interest paid or accrued
$
17,390

 
$
19,089

Gain on extinguishment of debt including related swap activity

 
(3,758
)
Amortization of debt deferred costs
902

 
936

Over/Under-market mortgage adjustment of acquired properties, net
(82
)
 
(155
)
Gross interest expense
18,210

 
16,112

Capitalized interest
(2,921
)
 
(1,440
)
Total
$
15,289

 
$
14,672

 
 
 
 
Deferred Compensation Net Income Impact (1)
 
 
 
Interest and other income (expense)
$
2,976

 
$
1,093

Operating expense
(1,984
)
 
(729
)
General and administrative expense
(992
)
 
(364
)
Impact on Net Income
$

 
$

 
 
 
 
Supplemental Analyst Information
 
 
 
Equity in Earnings of Real Estate Joint Ventures and Partnerships, net
 
 
 
Net income from unconsolidated real estate joint ventures and partnerships
$
4,589

 
$
6,236

Intercompany fee income reclass
686

 
689

Other adjustments
142

 
(932
)
Equity in earnings of real estate joint ventures and partnerships, net
$
5,417

 
$
5,993

 
 
 
 
Dividends
 
 
 
Common Dividends per Share
$
0.395

 
$
0.395

 
 
 
 
Common Dividends Paid as a % of Reported Funds from Operations - Basic
76.2
%
 
65.4
%
 
 
 
 
Common Dividends Paid as a % of Core Funds from Operations - Basic
76.2
%
 
68.5
%
 
 
 
 
General and Administrative Expenses
 
 
 
General and Administrative Expenses/Total Revenue
7.8
%
 
4.2
%
 
 
 
 
General and Administrative Expenses/Total Assets before Depreciation
0.19
%
 
0.11
%
 
 
 
 
Additional Disclosures for Revenues and Operating Expenses
 
 
 
 
 
 
 
Minority Interests Share of Revenues and Operating Expenses and Other Adjustments
$
(1,086
)
 
$
(1,242
)
 
 
 
 
Pro rata Share of Unconsolidated Joint Ventures
 
 
 
Revenues
12,319

 
13,227

Operating expense
(2,286
)
 
(2,416
)
Real estate taxes
(1,795
)
 
(2,010
)
 
 
 
 
Revenues and Operating Expenses from Sold Properties
749

 
9,896

(1)
Eligible associates of the Company may contribute a portion of their earnings to a Deferred Compensation plan for income tax deferral purposes.  The Company does not match or contribute funds to the plan, as it is all the associates earnings.  The asset and corresponding liability along with the related earnings are recorded in the Company financial statements on behalf of the participants.
Note: Pro rata financial information is not, and is not intended to be, a presentation in accordance with generally accepted accounting principles. See page 1 for information regarding this presentation and the limitations thereof.

Page 7



Weingarten Realty Investors
Supplemental Balance Sheet Detail
(in thousands)
 
March 31,
2019
 
December 31,
2018
 
 
 
 
Property
Land
$
908,682

 
$
919,237

Land held for development
42,795

 
45,673

Land under development
56,750

 
55,793

Buildings and improvements
2,914,394

 
2,927,954

Construction in-progress
182,174

 
156,411

Total
$
4,104,795

 
$
4,105,068

 
 
 
 
Straight Line Rent Receivable
 
$
60,630

 
$
61,487

 
 
 
 
Other Assets, net
Notes receivable and mortgage bonds, net
$
24,921

 
$
24,995

Debt service guaranty asset
60,900

 
60,900

Non-qualified benefit plan assets
34,224

 
30,999

Out-of-market leases, net
17,877

 
18,564

Investments
2,000

 
9,635

Deferred income tax asset
8,117

 
6,495

Unamortized debt costs, net
1,101

 
1,307

Right of use assets, net
43,876

 

Other
5,767

 
7,283

Total
$
198,783

 
$
160,178

 
 
 
 
Other Liabilities, net
Deferred revenue
$
8,352

 
$
13,568

Non-qualified benefit plan liabilities
71,493

 
68,387

Deferred income tax payable
6,133

 
6,488

Out-of-market leases, net
56,802

 
57,997

Operating lease liabilities, net
42,425

 

Other
24,014

 
21,963

Total
$
209,219

 
$
168,403

 
 
 
 
Identified Intangible Assets and Liabilities
Identified Intangible Assets:
 
 
 
Above-market leases (included in Other Assets, net)
$
38,254

 
$
38,181

Above-market leases - Accumulated Amortization
(20,377
)
 
(19,617
)
In place leases (included in Unamortized Lease Costs, net)
182,627

 
193,658

In place leases - Accumulated Amortization
(88,852
)
 
(99,352
)
Total
$
111,652

 
$
112,870

 
 
 
 
Identified Intangible Liabilities:
 
 
 
Below-market leases (included in Other Liabilities, net)
$
85,853

 
$
85,742

Below-market leases - Accumulated Amortization
(29,051
)
 
(27,745
)
Above-market assumed mortgages (included in Debt, net)
3,446

 
3,446

Above-market assumed mortgages - Accumulated Amortization
(1,741
)
 
(1,660
)
Total
$
58,507

 
$
59,783


Page 8



Weingarten Realty Investors
Capitalization and Debt Coverage Ratios
(in thousands, except common share data and percentages)

 
March 31,
 
December 31,
 
2019
 
2018
 
 
 
 
Common Share Data
Closing Market Price
$
29.37

 
$
24.81

 
 
 
 
Capitalization
Debt
$
1,788,551

 
$
1,794,684

Common Shares at Market
3,778,362

 
3,183,942

Operating Partnership Units at Market
42,058

 
35,528

Total Market Capitalization (As reported)
$
5,608,971

 
$
5,014,154

Debt to Total Market Capitalization (As reported)
31.9
%
 
35.8
%
Debt to Total Market Capitalization (As reported at a constant share price of $32.87)
35.7
%
 
35.8
%
Debt to Total Market Capitalization (Pro rata)
32.5
%
 
36.4
%
 
 
 
 
Capital Availability
Revolving Credit Facility
$
500,000

 
$
500,000

Less:
 
 
 
Balance Outstanding Under Revolving Credit Facility

 
5,000

Outstanding Letters of Credit Under Revolving Facility
2,054

 
2,054

Unused Portion of Credit Facility
$
497,946

 
$
492,946

Significant Covenant Ratios
 
 
Restrictions
 
 
 
 
Debt to Asset Ratio (Public)
 
Less than 60.0%
 
37.7
%
 
38.1
%
Secured Debt to Asset Ratio (Public)
 
Less than 40.0%
 
7.0
%
 
7.1
%
Unencumbered Asset Test (Public)
 
Greater than 150%
 
287.8
%
 
284.0
%
Fixed Charge Coverage (Revolver) (Pro rata EBITDA/
(interest expense + scheduled principal payments))
 
Greater than 1.5x
 
4.2x

 
4.3x

Credit Ratings
 
 
 
 
S&P
 
Moody's
Senior Debt
BBB
 
Baa1
Outlook
Stable
 
Stable

Note:
Pro rata financial information is not, and is not intended to be, a presentation in accordance with generally accepted accounting principles. See page 1 for information regarding this presentation and the limitations thereof.


Page 9



Weingarten Realty Investors
Guidance

2019 Guidance
 
 
 
 
 
 
Net income attributable to common shareholders
 
$1.77 - $1.89
Depreciation and amortization
 
1.23 - 1.25
(Gain) on sale of property and interests in RE equity investments
 
(0.93) - (0.99)
NAREIT FFO - Basic
 
2.07 - 2.15
Income attributable to operating partnership units
 
0.02 - 0.02
NAREIT FFO Per Common Share - Diluted
 
$2.09 - $2.17
Core FFO Per Common Share - Diluted
 
$2.09 - $2.17
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Activity ($ in millions)
 
 
Acquisitions
 
$50 - $150
 
 
 
Re / New Development
 
$175 - $225
 
 
 
Dispositions
 
$250 - $350
 
 
 
 
 
 
Operating Information
 
 
Same Property Net Operating Income with redevelopments
 
+2.0% to +3.0%
 
 
 
Same Property Net Operating Income without redevelopments
 
+1.5% to +2.5%
 
 
 
 
 
 
 


Page 10














Investment Activity






Weingarten Realty Investors
Capital Expenditures
(at pro rata share)
(in thousands)


 
 
 
 
 
 
 
 
Three Months Ended
March 31, 2019
 
Twelve Months Ended
December 31, 2018
 
Acquisitions
 
$
20,300

 
$
1,250

 
New Development
 
29,149

 
84,546

 
Redevelopment
 
14,703

 
54,769

 
Building and Site Improvements
 
2,407

 
20,859

 
Tenant Finish
 
9,023

 
32,626

 
External Leasing Commissions
 
1,063

 
3,939

 
Capital Expenditures
 
$
76,645

 
$
197,989

 
 
 
 
 
 
 

Note:
Pro rata financial information is not, and is not intended to be, a presentation in accordance with generally accepted accounting principles. See page 1 for information regarding this presentation and the limitations thereof.



Page 12



Weingarten Realty Investors
Development and Redevelopment Projects
As of March 31, 2019
(at pro rata share, except multi-family units)
(in thousands, except percentages and multi-family units)
 
 
 
 
 
 
 
Estimated Final
 
 
 
 
 
 
WRI
 
Percentage
Costs
Total at
Estimated
Occupancy
 
 
Property
Market
Own %
SF
Leased
Incurred to Date
Completion
ROI
Stabilized
Key Tenants / Description
 
 
 
 
 
 
 
 
 
 
 
 
Developments and Large Redevelopments Under Construction (1,2)
 
 
 
 
 
 
 
West Alex
Alexandria, VA
100%
Retail = 102 SF
16.8%
$
136,118

$
200,000

 
2H 22
Harris Teeter
 
 
 
 
 
Office = 25 SF
 
 
 
 
 
 
 
 
 
 
 
Multifamily = 278 units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Centro Arlington* (3)
Arlington, VA
90%
Retail = 65 SF
14.2%
89,456

135,000

 
2H 20
Harris Teeter
 
 
 
 
 
Multifamily = 366 units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Driscoll at River Oaks
Houston, TX
100%
Retail = 11 SF
0.0%
29,309

150,000

 
1H 22
30-Story Residential High-Rise and
 
 
 
 
 
Multifamily = 318 units
 
 
 
 
11,000 SF Retail
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.3%
$
254,883

$
485,000

5.5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redevelopments Under Construction (2)
 
 
 
 
 
 
 
 
Sunset Point 19
Clearwater, FL
100%
142

 
$
21,410

$
23,090

 
2H 19
Sprouts, Bed Bath & Beyond, DSW
 
River Point at Sheridan
Denver, CO
100%
53

 
3,668

12,541

 
2H 20
Burlington, New Shop Space Building, and Pads
 
Winter Park Corners
Orlando, FL
100%
43

 
9,037

12,082

 
1H 19
Sprouts and Two New Shop Space Buildings
 
The Shoppes at Wilderness Oaks
San Antonio, TX
100%
20

 
8,329

7,295

 
2H 20
20,000 SF Multi-Tenant Building, and Pads
 
Fiesta Trails
San Antonio, TX
100%
20

36%
139

5,869

 
2H 20
Two New Shop Space Buildings
 
Rock Prairie Mrktpl
College Station, TX
100%
28

 
4,461

6,056

 
1H 20
Valero, Multi-Tenant Building, and Pads
 
Tomball Marketplace
Houston, TX
100%
27


4,142

5,367

 
1H 19
Three New Shop Space Buildings
 
All other redevelopments < $5 million (3 properties)
25

19%
8,264

9,929

 
various
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
59,450

$
82,229

8.0 - 12.0%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Completed Redevelopments (6 properties)
 
 
 
$
13,352

10.0 - 12.0%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Developments and Large Redevelopments Under Construction Completions
 
 
 
 
 
 
 
 
 
 QTD Completed
 YTD Completed
 2Q'19E
 3Q'19E
 4Q'19E
 1Q'20E
 2Q'20E
 Remaining Balance
 
Completions ($)
 
$28,800 - $33,800
$38,200 - $43,200
$43,800 - $48,800
$315,600 - $320,600
 
Weighted Return (%)
 
5.7% - 6.2%
5.3% - 5.8%
5.2% - 5.7%
5.3% - 5.9%
 
Net Revenues and Operating Expenses (Annualized)
$1,630 - $2,080
$2,020 - $2,500
$2,300 - $2,775
$16,600 - $18,785
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash NOI Developments and Large Redevelopments Under Construction (Current Quarter):
$

 
 
 
 
Cash NOI Redevelopments Under Construction (Current Quarter) (4):
 
 
$
1,223

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
Large redevelopment is defined where total incremental investment over $50 million.
(2
)
Redevelopment is defined where GLA is added either through new construction or expansion of an existing space.
(3
)
WRI will participate in the development of this mixed-use property. WRI will have a 90% equity interest in the property and is committed to fund an additional $48 million in imputed debt.
(4
)
Cash NOI for Completed Redevelopments is not included in this total.
*

Unconsolidated Joint Venture
 
Pro rata financial information is not, and is not intended to be, a presentation in accordance with generally accepted accounting principles. See page 1 for information regarding this presentation and the limitations thereof.

Page 13



Weingarten Realty Investors
Land Held for Development
As of March 31, 2019
(in thousands, except acres and percentages)

 
 
Ownership
 Interest
 
Gross
 Acres
 
Investment (1)
Location
 
 
 
100%
 
Pro Rata
 
 
 
 
 
 
 
 
 
New Development Phased Projects
 
 
 
 
 
 
 
 
Highway 17 and Highway 210, Surf City, NC
 
100.0
%
 
44.7

 
 
 
 
US 77 & FM 802, Brownsville, TX
 
100.0
%
 
21.0

 
 
 
 
US Hwy. 1 and Caveness Farms Rd., Wake Forest, NC
 
100.0
%
 
20.9

 
 
 
 
Belle Terre Pkwy. & State Rd. 100, Palm Coast, FL
 
100.0
%
 
6.7

 
 
 
 
Hwy. 85 & Hwy. 285, Sheridan, CO
 
100.0
%
 
5.6

 
 
 
 
SR 207 & Rolling Hills Drive, St. Augustine, FL
 
70.0
%
 
5.2

 
 
 
 
29th St. at Nolana Loop, McAllen, TX
 
50.0
%
 
3.8

 
 
 
 
FM 2920 and Future 249, Tomball - Houston, TX
 
100.0
%
 
2.2

 
 
 
 
Total New Development Phased Projects
 
 
 
110.1

 
$
16,244

 
$
14,792

Other Raw Land
 
 
 
 
 
 
 
 
FM 1957 (Potranco Rd.) and FM 211, San Antonio, TX
 
50.0
%
 
120.4

 
 
 
 
South Fulton Parkway and SH 92, Union City - Atlanta, GA
 
100.0
%
 
24.1

 
 
 
 
Lon Adams Rd. at Tangerine Farms Rd. - Marana, AZ
 
100.0
%
 
9.7

 
 
 
 
SH 281 & Wilderness Oaks, San Antonio, TX
 
100.0
%
 
9.1

 
 
 
 
SH 151 & Ingram Rd., San Antonio, TX
 
66.7
%
 
5.8

 
 
 
 
Rock Prairie Rd. at Hwy. 6, College Station, TX
 
100.0
%
 
5.3

 
 
 
 
Shary Road and US Hwy. 83, Mission, TX
 
50.0
%
 
4.0

 
 
 
 
Other
 
100.0
%
 
22.6

 
 
 
 
Total Raw Land
 
 
 
201.0

 
$
32,338

 
$
20,210

 
 
 
 
 
 
 
 
 
Total Land Held For Development Properties
 
 
 
311.1

 
$
48,582

 
$
35,002



(1) Net of impairment and valuation adjustments.

Notes:
Land costs account for $40.1 million of total investment at 100%, $27.1 million at pro rata share.
Categorization based upon proximity to development property and does not indicate future development pipeline.

Pro rata financial information is not, and is not intended to be, a presentation in accordance with generally accepted accounting principles. See page 1 for information regarding this presentation and the limitations thereof.


Page 14



Weingarten Realty Investors
Acquisition and Disposition Summary
For the Period Ended March 31, 2019
(at pro rata share)
(in thousands, except percentages)

Center
 
City/State
 
Sq. Ft.
 at 100%
 
Date Acquired
 
Purchase Price
 
Yield (1)
 
 
 
 
 
 
 
 
 
 
 
Acquisitions
 
 
 
 
 
 
 
 
 
 
 
Madison Village
 
Phoenix, AZ
 
90

 
03/28/19
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Acquisitions
 
 
 
 
 
 
$
20,300

 
5.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Date
 Sold
 
Sales
 Price (2)
 
Weighted
 Sales
 Cap (3)
Dispositions
 
 
 
 
 
 
 
 
 
 
 
1st Quarter
 
 
 
 
 
 
 
 
 
 
 
Waterford Village
 
Leland, NC
 
108

 
02/14/19
 
 
 
 
 
Waterford Village Land
 
Leland, NC
 
N/A

 
02/14/19
 
 
 
 
 
Reynolds Crossing
 
Duluth, GA
 
46

 
03/12/19
 
 
 
 
 
Brookwood Marketplace
 
Suwanee, GA
 
200