EX-99.1 2 ex99_1.htm EXHIBIT 99.1 TO 2Q2005 FORM 8-K Exhibit 99.1 to 2Q2005 Form 8-K

 WRI Logo 2
2600 Citadel Plaza Drive
 Exhibit 99.1
P.O. Box 924133
  
Houston, Texas 77292-4133
  
   

NEWS RELEASE
Information: Brook Wootton
  
 
(713) 866-6050
  
 

Weingarten Realty Investors Announces Solid Second Quarter 2005 Results Including Record Gains from Property Sales
 
HOUSTON, July 27 /PRNewswire-FirstCall/ -- Weingarten Realty Investors (NYSE: WRI) announced today the strong results of its second quarter ended June 30, 2005.
 
·  
Net income available to common shareholders on a diluted basis increased to $69.0 million, compared to $36.8 million in the second quarter 2004, an increase of 87.5%;
 
·  
Funds from Operations (FFO) on a diluted basis, considered the most meaningful performance measurement within the REIT industry, increased to $64.6 million for the second quarter of 2005 from $51.6 million for the same period in 2004, a 25.2% increase. On a diluted per share basis, FFO increased to $0.69 per share compared to $0.58 per share for the same quarter of the previous year, a 19.0% increase. FFO for 2005 benefited from unusual lease cancellation payments of about $1.8 million while FFO for 2004 included non-cash charges totaling $6.3 million relating to the original issuance costs associated with the redemption of the Company’s Series C Preferred Shares and the impairment of a tract of unimproved land. Excluding these unusual items in both years, FFO for the second quarter of 2005 totaled $62.8 million, or $.67 per common share, as compared to $57.9 million, or $.65 per common share;
 
·  
Rental revenues for the second quarter of 2005 were $133.6 million, up from $119.6 million for the second quarter of 2004, an 11.7% increase;
 
·  
Same property Net Operating Income (NOI) growth for the total portfolio was 4.8%, the highest such increase in at least the last five years;
 
·  
Occupancy of the overall portfolio was reported at 94.2% for the second quarter of 2005;
 
·  
Acquisitions and new developments, year-to-date, added 1.6 million square feet to the portfolio, representing a total investment of $243 million;
 
·  
Dispositions, year-to-date, totaled 1.1 million square feet providing proceeds of $141.4 million, and generating gains of $62.5 million;
 
·  
The Board of Trust Managers declared a dividend of $0.44 per common share for the second quarter of 2005, up from $0.415 per common share in 2004. On an annualized basis, this represents a dividend of $1.76 per common share as compared to $1.66 per common share for the prior year, a 6.0% increase. The dividend is payable on September 15, 2005 to shareholders of record on September 5, 2005; and
 
·  
The Board of Trust Managers also declared dividends on the Company's preferred shares. Dividends related to the 6.75% Series D Cumulative Redeemable Preferred Shares (NYSE: WRIPrD) are $0.421875 per share for the quarter. Dividends on the 6.95% Series E Cumulative Redeemable Preferred Shares (NYSE: WRIPrE) are $0.434375 per share for the same period. Both preferred share dividends are payable on September 15, 2005 to shareholders of record on September 5, 2005.
 
In announcing the results for the second quarter, Drew Alexander, President and Chief Executive Officer, indicated the strong performance of its existing portfolio, coupled with the continued strength of the Company’s acquisition and development efforts, has allowed the Company to produce solid year over year results while at the same time completing record levels of dispositions of certain non-core assets.
 
"Leasing activity remains solid with rental rates up over 8% and same store NOI for the quarter increasing a very strong 4.8%," Alexander stated. "Additionally, our acquisitions team continues to be successful in identifying attractive acquisition opportunities and efficiently moving these prospects to closing. During the second quarter, we purchased eight shopping centers totaling 1.1 million square feet with a combined investment of $167 million and a projected return of approximately 7 1/2%. In addition, we have another $100 million of potential acquisitions under contract, in various stages of due diligence. Naturally, the future market environment for attractive acquisitions will continue to determine the pace that we can execute our on-going program. As always, we take a very disciplined approach to investing our shareholders' money and will only undertake acquisition projects that can deliver long-term returns over our blended cost of capital," Alexander added.
 
 
 
"We were also very successful in accelerating the pace of our dispositions program during the second quarter. During the quarter, we sold four shopping centers, an 80% interest in two additional shopping centers and one industrial building. Subsequent to quarter-end, we sold an additional shopping center. Year-to-date dispositions produced proceeds of $141 million representing 1.1 million square feet," Alexander commented.
 
Alexander also reported that the Company currently has seven retail development properties in various stages of development. Anchored by market-dominant supermarkets or national discount department stores, these developments will represent an investment of approximately $50 million and will add over 400,000 square feet to the portfolio when completed. The properties are slated to open during the remainder of 2005 and early 2006.
 
In addition to these projects, the company is seeing a significant increase in the development pipeline. At the present time the company has 15 sites under contract, which will add 2.2 million square feet with an investment value of approximately $225 million when fully developed over the next two to three years.
 
With respect to the existing portfolio, Alexander noted that the Company completed 336 new leases and renewals totaling 1.7 million square feet during the second quarter 2005, with an average rental rate increase of 8.1% on a same-space basis. Net of capital costs associated with improvements to the leased spaces, rental rates increased 5.1%.
 
Alexander stated, "Looking ahead, we are very excited about the opportunities to profitably grow the Company during the remainder of 2005. We are focused on maximizing the value of our existing portfolio, completing acquisition and development opportunities, and continuing the accelerated pace of our disposition program. We believe that the recycling of certain assets is an important part of our ongoing strategy."
 
Conference Call Information
 
The Company also announced that it will host a live webcast of its quarterly conference call on Thursday, July 28, 2005 at 10:00 a.m. Central Time. The webcast can be accessed via the Company's Web site at http://www.weingarten.com. A replay is also available through the Company's Web site starting approximately two hours following the live call or can be heard by calling 877-519-4471, identification number 6215460 for the following 24 hours.
 
About Weingarten Realty Investors
 
Weingarten Realty Investors is a Houston, Texas based real estate investment trust with 353 income producing and new development properties in 20 states that span from coast to coast in the southern half of the United States. Included in the portfolio are 294 neighborhood and community shopping centers and 59 industrial properties aggregating 47.0 million square feet. Weingarten has one of the most diversified tenant bases of any major REIT in its sector, with the top 10 tenants comprising less than 15% of its rental revenues. Listed on the New York Stock Exchange, the Company's common shares are traded under the symbol "WRI". Additionally, the Company produces and posts on a quarterly basis supplemental financial information on its Web site. For further information on the Company, please visit http://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.
 
 
 

Financial Statements
Weingarten Realty Investors
(in thousands, except per share amounts)
                   
                   
                   
   
Three Months Ended
  
Six Months Ended
  
   
June 30,
  
June 30,
  
STATEMENTS OF CONSOLIDATED INCOME AND
 
2005
  
2004
  
2005
  
2004
  
FUNDS FROM OPERATIONS
  
(Unaudited)
  
(Unaudited)
  
Rental Income
  
$
133,598
  
$
119,622
  
$
264,318
  
$
232,435
  
Other Income
    
3,134
   
1,483
   
4,283
   
3,310
 
Total Revenues
    
136,732
   
121,105
   
268,601
   
235,745
 
Depreciation and Amortization
    
31,476
   
28,608
   
61,858
   
54,584
 
Operating Expense
    
19,298
   
18,437
   
38,503
   
35,181
 
Ad Valorem Taxes
    
15,929
   
14,321
   
31,759
   
28,375
 
General and Administrative Expense
    
4,522
   
3,936
   
8,769
   
7,962
 
Impairment Loss
          
2,700
         
2,700
 
Total Expenses
    
71,225
   
68,002
   
140,889
   
128,802
 
Operating Income
   
65,507
   
53,103
   
127,712
   
106,943
 
Interest Expense
    
(31,887
)
  
(28,140
)
  
(62,490
)
  
(55,873
)
Loss on Early Redemption of Preferred Shares
          
(3,566
)
        
(3,566
)
Equity in Earnings of Joint Ventures
    
1,619
   
1,587
   
2,893
   
2,816
 
Income Allocated to Minority Interests
    
(1,745
)
  
(975
)
  
(3,145
)
  
(1,854
)
Gain on Sale of Properties
    
22,006
   
102
   
21,979
   
419
 
Income From Continuing Operations
    
55,500
   
22,111
   
86,949
   
48,885
 
Operating Income From Discontinued Operations
   
878
   
1,641
   
1,876
   
3,276
 
Gain on Sale of Properties From Discontinued Operations
    
13,827
   
13,430
   
17,942
   
13,430
 
Income from Discontinued Operations
    
14,705
   
15,071
   
19,818
   
16,706
 
Net Income
    
70,205
   
37,182
   
106,767
   
65,591
 
Less: Preferred Dividends
    
2,526
   
1,265
   
5,051
   
2,531
 
Net Income Available to Common Shareholders--Basic
  
$
67,679
  
$
35,917
  
$
101,716
  
$
63,060
  
Net Income Per Common Share--Basic
  
$
0.76
  
$
0.42
  
$
1.14
  
$
0.75
  
Net Income Available to Common Shareholders--Diluted
  
$
69,018
  
$
36,783
  
$
104,289
  
$
64,751
  
Net Income Per Common Share--Diluted
  
$
0.74
  
$
0.42
  
$
1.12
  
$
0.74
  
                           
                           
Funds from Operations:
                          
Net Income Available to Common Shareholders
  
$
67,679
  
$
35,917
  
$
101,716
  
$
63,060
  
Depreciation and Amortization
    
29,447
   
27,027
   
57,759
   
51,781
 
Depreciation and Amortization of Unconsolidated Joint Ventures
    
939
   
701
   
1,843
   
1,358
 
Gain on Sale of Properties
    
(35,622
)
  
(13,508
)
  
(39,713
)
  
(13,825
)
Loss on Sale of Properties of Unconsolidated Joint Ventures
    
2
         
3
       
Funds from Operations--Basic
  
$
62,445
  
$
50,137
  
$
121,608
  
$
102,374
  
Funds from Operations Per Common Share--Basic
  
$
0.70
  
$
0.59
  
$
1.36
  
$
1.21
  
Funds from Operations--Diluted
  
$
64,606
  
$
51,645
  
$
125,842
  
$
105,212
  
Funds from Operations Per Common Share--Diluted
  
$
0.69
  
$
0.58
  
$
1.35
  
$
1.20
  
Weighted Average Shares Outstanding--Basic
    
89,178
   
85,598
   
89,150
   
84,371
 
Weighted Average Shares Outstanding--Diluted
    
93,170
   
88,627
   
93,118
   
87,451
 
 
 

   
June 30,
 
December 31,
 
   
2005
  
2004
  
CONSOLIDATED BALANCE SHEETS
  
(Unaudited)
  
(Audited)
  
Property
  
$
3,938,800
  
$
3,751,607
  
Accumulated Depreciation
    
(645,883
)
  
(609,772
)
Investment in Real Estate Joint Ventures
    
62,149
   
48,382
 
Notes Receivable
    
23,840
   
16,593
 
Unamortized Debt and Lease Costs
    
96,875
   
91,155
 
Accrued Rent and Accounts Receivable, net
    
47,113
   
57,964
 
Cash and Cash Equivalents
    
48,603
   
45,415
 
Other Assets
    
57,475
   
68,974
 
Total Assets
  
$
3,628,972
  
$
3,470,318
  
               
Debt
  
$
2,221,554
  
$
2,105,948
  
Accounts Payable and Accrued Expenses
    
93,447
   
99,680
 
Other
    
104,538
   
94,800
 
Total Liabilities
    
2,419,539
   
2,300,428
 
               
Minority Interest
   
86,370
   
73,930
 
               
Preferred Shares of Beneficial Interest
    
4
   
4
 
Common Shares of Beneficial Interest
    
2,677
   
2,672
 
Additional Paid in Capital
   
1,286,950
   
1,283,270
 
Accumulated Dividends in Excess of Net Income
    
(161,994
)
  
(185,243
)
Accumulated Other Comprehensive Loss
    
(4,574
)
  
(4,743
)
Total Shareholders' Equity
    
1,123,063
   
1,095,960
 
Total Liabilities and Shareholders' Equity
  
$
3,628,972
  
$
3,470,318