2600 Citadel Plaza Drive
P.O. Box 924133
Houston, Texas 77292-4133
(713) 866-6000
(713) 866-6049 FAX
2600 Citadel Plaza Drive
P.O. Box 924133
Houston, Texas 77292-4133
(713) 866-6000
(713) 866-6049 FAX
[GRAPHIC OMITED]
NEWS RELEASE
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Information: Kelly
(713) 866-6050
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WEINGARTEN REALTY INVESTORS ANNOUNCES
FIRST QUARTER EARNINGS .FUNDS FROM
OPERATIONS SHOW 15.3% INCREASE
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Houston, Texas, April 19, 2001: Weingarten Realty Investors (NYSE:WRI)
announced today the results of its first quarter, ended March 31, 2001.
* Funds from Operations (FFO) increased to $31.8 million from $27.5 million
for the first quarter in 2000, a 15.3% increase. On a diluted per share
basis, FFO increased to $1.05 per share as compared to $1.03 per share the
previous year. The Company reported that the dilutive effect on funds from
operations per share from its common equity offering was exaggerated due to
the two-month time lapse between the offering on January 29, 2001 and the
closing of the California portfolio on April 2, 2001. Excluding the
dilutive effect of the common equity offering, funds from operations would
have been $1.11 per share, an increase of 7.8% over the same quarter in
2000. The Company said it remains committed to the 8-10% FFO per share
annual growth objective and expects to meet the street's FFO expectations
for the year 2001.
* Rental revenues for the first quarter of 2001 were $72.7 million, up from
$62.2 million for the first quarter of 2000 for a 17% increase.
* Net income increased to $25.4 million or $.68 per diluted share as
compared to $19.5 million or $.54 per diluted share in 2000. Included in
net income for 2001 is the gain on the sale of a shopping center of $4.3
million. No comparable transaction occurred in the first quarter of 2000.
* Occupancy of the overall portfolio was reported at 92.3% for the first
quarter of 2001, up from 92.1% for the same quarter in 2000. Occupancy for
the retail properties stood at 92.5% at the end of the first quarter as
compared to 91.5% for the same quarter of the prior year. For the
industrial properties, occupancy was reported at 91.6%, as compared to
94.1% reported for the first quarter of 2000.
* The Board of Trust Managers declared a dividend of $.79 per common share
for the first quarter of 2001, up from $.75 per common share in 2000. On an
annualized basis, this represents a dividend of $3.16 per share as compared
to $3.00 per share for the prior year, a 5.3 % increase. The dividend is
payable on June 15, 2001 to shareholders of record on May 18, 2001.
In announcing the results for the first quarter, Drew Alexander, President and
Chief Executive Officer attributed the strong results to acquisitions and new
development brought on-line and to increased rental revenues from the existing
portfolio. He noted that the Company completed 205 new leases or renewals
totaling 1.0 million square feet with an average increase of 8.1% in the rental
rates on a same-space basis. Net of capital costs, rental rates increased 6.8%.
Alexander also noted that three major accomplishments were complete during the
first quarter.
* The Company completed a successful common equity offering in January
raising $188 million. This was the Company's first common equity offering
since 1993.
* The Company acquired (actual closing on April 2, 2001) 19
supermarket-anchored shopping centers in California. The properties were
purchased from Burnham Pacific Properties, Inc. for $277.5 million
including the assumption of $132 million of debt. Located in the
Sacramento/San Francisco Bay area (13) and the Los Angeles area (6), the
properties added approximately 2.5 million square feet to the portfolio.
* In February, the Company completed its largest single asset purchase by
acquiring the 488,000 square foot Colonial Plaza in Orlando, Florida. The
$54 million investment features a multitude of nationally, well-known
retailers including Barnes and Noble, Old Navy, Stein Mart, Linens 'N
Things, Marshall's, Babies 'R' Us, Staples, Ross Dress For Less, Rhodes,
Circuit City and Just for Feet. Colonial was the third acquisition for the
Company in the state of Florida.
Alexander also reported that the Company currently has fourteen new developments
under way including three with its Denver, Colorado joint venture partner.
Other locations, according to Alexander, are located in the Dallas, Texas area,
Las Vegas, Nevada, Phoenix, Arizona and several cities in the state of
Louisiana. Alexander further noted that the Company also completed the purchase
of land in Chandler, Arizona (a suburb of Phoenix) for another new development
that will be adjacent to a Target store. He noted that, including the Chandler
development, the new developments would represent an investment of approximately
$152 million, of which approximately $75 million will be invested in 2001.
Alexander reported that these new developments are expected to come on-line
beginning in early 2001 through mid 2002.
"The first quarter, has, without question, been the most exciting in our 53 year
history," stated Alexander. "And, we are very optimistic about the remainder of
the year as we continue to discover quality acquisitions, create anchored
development opportunities and work to maximize the potential of our existing
portfolio. At the same time, we are making great progress on integrating the
California properties into our operations", he concluded.
The Board of Trust Managers also declared dividends on the Company's preferred
shares. The 7.44% Series A Cumulative Redeemable Preferred Shares (NYSE:WRIPrA)
dividend of $.465 per share is payable on July 2, 2001 to shareholders of record
on June 15, 2001. The 7.125% Series B Cumulative Redeemable Preferred Shares
dividend of $.4453 per share is payable on June 15, 2001 to shareholders of
record on June 1, 2001 and the 7.00 Series C Cumulative Redeemable Preferred
Shares (NYSE:WRIPrC) dividend of $.875 per share is payable on June 15, 2001 to
shareholders of record on June 1, 2001.
The Company also announced that it will host a live web cast of its quarterly
conference call on Monday, April 23, 2001 at 9:00 AM, Central Time. The web
cast can be accessed via the Company's web site at www.weingarten.com. A Post
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View is also available at the site starting approximately two hours following
the live call or can be heard by calling 800-257-4607, identification number
18187520 for the following 24 hours.
Weingarten Realty Investors is a Houston, Texas based real estate investment
trust with 274 income-producing properties in 15 states that span from coast to
coast in the southern half of the United States. Included in the portfolio are
217 neighborhood and community shopping centers, 55 industrial properties, one
multi-family complex and one office building aggregating close to 33 million
square feet. Listed on the New York Stock Exchange, the Company's common shares
are traded under the symbol, "WRI".
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STATEMENTS INCLUDED HEREIN THAT STATE THE COMPANY'S OR MANAGEMENT'S INTENTIONS,
HOPES, BELIEFS, EXPECTATIONS OR PREDICATIONS 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 AS IMPLIED BY SUCH STATEMENTS. REFERENCE IS
MADE TO THE COMPANY'S REGULATORY FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION FOR INFORMATION OR FACTORS, WHICH MAY IMPACT THE COMPANY'S
PERFORMANCE.
For more news on the Company, please visit our web site at www.weingarten.com.
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