 | 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 | |||