Weingarten Realty (NYSE: WRI) declares its quarterly dividend
and provides an update on property operations impacted by COVID-19.
To view the Company’s updated investor presentation, please visit
the BofA 2020 Global RE Conference on our Webcasts &
Presentations page at www.weingarten.com.
“As the severity of the pandemic trends downward, we are seeing
some improvements in the economy, as well as our own operating
metrics. While this unprecedented crisis is far from over, we are
cautiously optimistic that this upward trend in the economy will
continue. As always, we want to wish the best to all the first line
responders, including the many associates at our retailers. Our
sympathies continue to go out to those affected by this crisis. We
remain focused on the safety and well-being of our associates,
tenants, stakeholders and the broader community. Our transformed
portfolio, primarily grocery-anchored centers providing basic goods
and services, continues to perform well even in these challenging
times,” said Drew Alexander, Chairman, President and Chief
Executive Officer.
Dividends
Today WRI announced that its Board of Trust Managers declared a
quarterly cash dividend of $0.18 per common share, payable on
October 13, 2020 to shareholders of record on October 8, 2020. As
communicated last quarter, the Company is paying its quarterly cash
dividend of $0.18 per share earlier due to an election made last
year to shift dividend payments from 2019 to 2020.
Year-to-date, the Company has completed dispositions of $152
million including $64 million subsequent to June 30, 2020. As such,
it is likely the Company will need to pay a special dividend near
year-end to cover additional 2020 taxable income due to gains on
these sales; however, the amount of any special dividend is
uncertain at this time. The Company will continue to monitor tenant
collections, evaluate its operations and financial position and
will adjust future dividends as appropriate.
Improving Portfolio Results
The Company’s transformed portfolio, which is 80% supermarket
anchored, is very strong and diversified with 165 shopping centers
located in 16 states primarily in the south and western United
States at June 30, 2020. Additionally, over 75% of the average base
rent of the portfolio comes from national and regional tenants.
Cash collections to-date for July rent have now reached 88% as
compared to 82% as reported in our second quarter press release.
Further, the Company negotiated deferral agreements for 6% of July
rent. Currently, August cash collections total 88% of rents. In
addition, to date, there are 2% of August rent deferrals. Payments
of previously deferred balances received during July and August
totaled $0.5 million, which was 86% of deferrals due during those
months. The Company’s collection rates continue to be among the
highest in the shopping center sector.
“As we wait to see how Labor Day weekend and the return to
school will impact the various measurements relating to the
pandemic, we are hopeful that the economy will continue the
improvement we have experienced thus far in the third quarter. Our
cash collections have continued to improve and we are beginning to
see some positive leasing activity while we continue to work
closely with our existing tenants as they rebuild their business to
pre-COVID levels,” said Johnny Hendrix, Executive Vice President
and Chief Operating Officer.
Liquidity
The Company’s balance sheet was further strengthened since
quarter-end with proceeds from its disposition program. With low
leverage and no material maturities until the fourth quarter of
2022, the Company has adequate liquidity to restore its properties
to their full operating potential in addition to funding the
dividend payments described herein.
“With $34 million of excess cash balances, full availability
under our $500 million revolver, cash collections trending at
higher levels than originally projected, and access to numerous
other sources of capital, we remain comfortable with our ability to
meet all liquidity needs going forward, including completion of our
development projects and any additional dividends required by our
disposition activity,” said Steve Richter, Executive Vice President
and Chief Financial Officer.
About Weingarten Realty Investors
Weingarten Realty Investors (NYSE: WRI) is a shopping center
owner, manager and developer. At June 30, 2020, 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
165 properties which are located in 16 states spanning the country
from coast to coast. These properties represent approximately 31.4
million square feet of which our interests in these properties
aggregated approximately 21.3 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. These risks and uncertainties include
those related to the COVID-19 pandemic, about which there are still
many unknowns, including the duration of the pandemic and the
extent of its impact, as well as those discussed in the Company’s
regulatory filings with the Securities and Exchange Commission,
which include other 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 represents 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.
Weingarten Realty
Investors
COVID-19 Impact - Tenant
Status
Updated as of September 10,
2020
(at pro rata share)
Tenant Type
Percent of Annualized Base
Rent (1)
Q2 Rent Payments Received
(2)
July Rent Payments Received
(2)
August Rent Payments Received
(2)
Essential & Restaurants
Supermarkets
14%
100%
100%
100%
Full Service Restaurants
10%
67%
78%
78%
Quick Service Restaurants
9%
81%
84%
83%
Medical
6%
81%
97%
96%
Auto and Other Essentials
5%
90%
89%
88%
Pet Stores and Services
4%
97%
99%
100%
Bank / Financial Service
4%
100%
100%
100%
General Merchandise (Dollar Stores)
2%
91%
100%
100%
Home Improvement
2%
98%
100%
99%
Sporting Goods
2%
58%
80%
100%
Drugstores
2%
90%
98%
97%
Liquor and Wine
1%
98%
98%
99%
Electronics
1%
100%
100%
100%
Office
1%
96%
95%
100%
Total Essential & Restaurants
63%
87%
92%
92%
Non-essential
Services
10%
76%
88%
86%
Discount Apparel
8%
76%
73%
92%
Home Furnishings
4%
76%
90%
96%
Health Club
3%
38%
72%
33%
Some Apparel
4%
50%
71%
66%
Craft
2%
85%
98%
99%
Beauty Supplies
1%
81%
99%
98%
Recreation/Entertainment
1%
71%
94%
86%
Movie Theaters
1%
51%
35%
39%
Footwear
1%
66%
96%
94%
Books
1%
26%
100%
100%
Party Supplies
1%
39%
48%
96%
Other
0%
95%
91%
79%
Total Non - Essential
37%
68%
82%
82%
Cash Collected
100%
80%
88%
88%
Signed Deferrals
13%
6%
2%
Abatements
1%
0%
1%
Cash Collected + Deferrals and
Abatements
94%
94%
91%
Tenant Size
Percent of Annualized Base
Rent (1)
Q2 Rent Payments Received
(2)
July Rent Payments Received
(2)
August Rent Payments Received
(2)
Anchors (> 10K SF)
45%
82%
90%
93%
Mid Tier (5K - 10K SF)
13%
68%
84%
82%
National / Regional Small Shops (<5K
SF)
23%
81%
92%
91%
Local Small Shops (<5K SF)
19%
79%
82%
80%
100%
80%
88%
88%
Business Type (3)
Percent of Annualized Base
Rent (1)
Q2 Rent Payments Received
(2)
July Rent Payments Received
(2)
August Rent Payments Received
(2)
Essential & Restaurants
63%
88%
93%
93%
Non-essential
37%
68%
82%
82%
100%
80%
88%
88%
(1) Commenced occupancy as of June 30,
2020.
(2) Based upon information as of September
10, 2020.
(3) Definitions can vary by location. This
represents the definition of a majority of the municipalities in
which centers are located.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200914005151/en/
Information: Michelle Wiggs, Phone: (713) 866-6050
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