EXHIBIT 99.1
WEINGARTEN REALTY INVESTORS ANNOUNCES
STRONG FIRST QUARTER EARNINGS
Houston, Texas, April 28, 2003: Weingarten Realty Investors (NYSE:WRI)
announced today the results of its first quarter ended March 31, 2003:
- Net income available to common shareholders increased to $25.0
million, as compared to $24.5 million in the first quarter 2002. This
represents $.48 per diluted share for the first quarter 2003, as
compared to $.47 per diluted share in 2002. The Company noted that net
income available to common shareholders for the first quarter of 2002
benefited from gains of $1.2 million on the sale of properties as
compared to $.9 million for the same period in 2003.
- Funds from Operations (FFO), which is considered the most meaningful
performance measurement within the REIT industry, increased to $43.9
million for the first quarter 2003 from $41.2 million for the same
period in 2002, a 6.6% increase. On a diluted per share basis, FFO
increased to $.84 per share as compared to $.79 per share the same
quarter of the previous year, a 6.3% increase.
- Rental revenues for the first quarter of 2003 were $96.9 million, up
from $83.4 million for the first quarter of 2002, a 16.2% increase.
- The Company invested $60.6 million in acquisitions and new development
projects.
- The Company issued $136 million of medium-term notes with an average
maturity of 11.4 years and weighted average interest rate of 5.4%. The
proceeds were employed to reduce Weingarten's floating-rate debt.
- Occupancy of the overall portfolio was reported at 91.8% for the first
quarter of 2003, up from 91.7% for both the first quarter 2002 as well
as the recent fourth quarter 2002. Occupancy for the retail properties
was 92.6% at March 31, 2003 as compared to 92.8% at March 31, 2002 and
92.5% at December 31, 2002. The industrial portfolio's occupancy
increased to 89.0% from 88.2% for the first quarter of 2002 and 88.7%
for fourth quarter 2002. It was reported that approximately 90% of
first quarter 2003 rental revenues are attributable to the Company's
retail properties, with the balance coming from its industrial
portfolio.
- The Board of Trust Managers declared a dividend of $.585 per common
share for the first quarter of 2003, up from $.555 per common share in
2002. On an annualized basis, this represents a dividend of $2.34 per
share as compared to $2.22 per share for the prior year, a 5.4%
increase. The dividend is payable on June 16, 2003 to shareholders of
record on June 2, 2003.
In announcing the results for the first quarter, Drew Alexander, President and
Chief Executive Officer, attributed the Company's increase in all measures of
performance to its acquisitions and new development projects brought on-line, as
well as to increased rental revenues from the existing portfolio.
Alexander commented, "Weingarten was able to successfully acquire three
desirable properties during the first quarter of 2003 for a total investment of
$41.8 million; Rancho San Marcos Village, a 121,000 square foot shopping center
anchored by Von's (Safeway) and 24-Hour Fitness in San Marcos, California (near
San Diego), and two industrial properties in Atlanta, Georgia totaling 905,000
square feet." He noted that the Company currently has a number of other
potential acquisitions in various stages of due diligence.
Alexander also reported that the Company completed five new development projects
during the first quarter 2003 totaling 393,000 square feet, representing an
investment of $55.7 million. These properties are 96.4% leased and have a
projected return of 10%. Weingarten currently has 18 new development properties
in various stages of construction, comprised of 17 shopping centers and one
industrial property. Upon completion, these developments will represent an
investment of approximately $216 million and will add 1.6 million square feet to
the portfolio. All 17 retail developments are anchored either by a supermarket
or a national discount department store. The industrial project is a 300,000
square foot state-of-the-art distribution warehouse, in which Weingarten will
have a 20% joint venture interest, which has been pre-leased to Houston-based
Shell Oil Products US. The new development projects will come on-line during
the remainder of 2003 and into 2004.
With respect to the existing portfolio, Alexander noted that the Company
completed 238 new leases or renewals totaling 1.5 million square feet during the
first quarter 2003, with an average rental rate increase of 6.8% on a same-space
basis from first quarter 2002. Net of capital costs associated with
improvements to the leased spaces, rental rates increased 4.1%.
Alexander further commented with regard to financing activities, "We have been
very pleased at the opportunity to take advantage of the ongoing favorable
interest rate environment whereby we have refinanced short-term, variable-rate
debt under our revolving line of credit with longer-term, fixed-rate debt. Over
the last 12 months, we have issued $292 million of medium-term notes through
several transactions with a weighted average interest rate of 5.5% and a
weighted average maturity of 10.3 years. This reduced our percentage of
variable-rate debt from 26% of total debt at March 31, 2002 to 16% of total debt
at March 31, 2003, one of the lowest such ratios in the REIT industry."
Alexander noted that the effect of these transactions was an increase in
interest expense over the past four quarters of over $2.8 million when compared
to what it would have been had Weingarten not refinanced this floating-rate
debt. These transactions served not only to reduce Weingarten's exposure to
interest rate increases, but also continued the Company's practice of carefully
staggering its future debt maturities. This will also allow the Company the
increased capacity to borrow further low-cost, floating-rate bank debt going
forward.
Subsequent to quarter-end, Weingarten called for redemption its 7.44% Series A
Cumulative Redeemable Preferred Shares. The redemption of these shares will be
financed through the issuance of $75 million of depositary shares of 6.75%
Series D Cumulative Redeemable Preferred Shares. Weingarten has filed an
application to list the new Series D shares on the NYSE, and anticipates trading
to begin in May 2003. According to Alexander, "The net effect of these two
preferred transactions will save Weingarten and our shareholders over $500,000
annually."
Alexander stated, "We continually work to maximize the potential of our existing
portfolio, and we are optimistic about the rest of 2003 as we pursue and assess
acquisition and development opportunities and evaluate alternative financing
opportunities that will benefit Weingarten over the long-term."
The Board of Trust Managers also declared dividends on the Company's preferred
shares. The 7.125% Series B Cumulative Redeemable Preferred Shares dividend of
$.4453 per share and the 7.00% Series C Cumulative Redeemable Preferred Shares
(NYSE:WRIPrC) dividend of $.875 per share are both payable on June 16, 2003 to
shareholders of record on June 2, 2003.
The Company also announced that it will host a live webcast of its quarterly
conference call on Monday, April 28, 2003 at 10:00 a.m. Central Time. The
webcast can be accessed via the Company's web site at www.weingarten.com. A
------------------
replay is also available at the site starting approximately two hours following
the live call or can be heard by calling 877-519-4471, identification number
3848242 for the following 24 hours.
Weingarten Realty Investors is a Houston, Texas based real estate investment
trust with 306 income-producing properties in 18 states that span from coast to
coast in the southern half of the United States. Included in the portfolio are
247 neighborhood and community shopping centers, 58 industrial properties and
one office building aggregating 39.0 million square feet. Listed on the New
York Stock Exchange, the Company's common shares are traded under the symbol
"WRI". For further information on the Company, please visit www.weingarten.com.
------------------
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 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.
FINANCIAL STATEMENTS
WEINGARTEN REALTY INVESTORS
(in thousands, except per share amounts)
Three Months Ended
March 31,
STATEMENTS OF CONSOLIDATED INCOME AND 2003 2002
FUNDS FROM OPERATIONS (Unaudited)
------------------------
Rental Income. . . . . . . . . . . . . . . . . . . . . . . . . $ 96,917 $ 83,421
Interest Income. . . . . . . . . . . . . . . . . . . . . . . . 246 200
Other Income . . . . . . . . . . . . . . . . . . . . . . . . . 1,022 760
----------- -----------
Total Revenues . . . . . . . . . . . . . . . . . . . . . . . 98,185 84,381
----------- -----------
Depreciation and Amortization. . . . . . . . . . . . . . . . . 21,199 17,761
Interest Expense . . . . . . . . . . . . . . . . . . . . . . . 19,439 14,996
Operating Expense. . . . . . . . . . . . . . . . . . . . . . . 14,146 12,250
Ad Valorem Taxes . . . . . . . . . . . . . . . . . . . . . . . 11,491 10,171
General and Administrative Expense . . . . . . . . . . . . . . 3,057 2,676
----------- -----------
Total Expenses . . . . . . . . . . . . . . . . . . . . . . . 69,332 57,854
----------- -----------
Income Before Equity in Earnings of Joint Ventures, Minority
Interest in Income of Partnerships, Gain on Sale of
Properties and Discontinued Operations . . . . . . . . . . . 28,853 26,527
Equity in Earnings of Joint Ventures . . . . . . . . . . . . . 1,038 1,074
Minority Interest in Income of Partnerships. . . . . . . . . . (895) (116)
Gain on Sale of Properties . . . . . . . . . . . . . . . . . . 9
----------- -----------
Income Before Discontinued Operations. . . . . . . . . . . . 29,005 27,485
----------- -----------
Operating Income From Discontinued Operations. . . . . . . . . 15 711
Gain on Sale of Properties . . . . . . . . . . . . . . . . . . 871 1,221
----------- -----------
Income from Discontinued Operations. . . . . . . . . . . . . 886 1,932
----------- -----------
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . 29,891 29,417
Less: Preferred Dividends . . . . . . . . . . . . . . . . . . 4,922 4,939
----------- -----------
Net Income Available to Common Shareholders. . . . . . . . . . $ 24,969 $ 24,478
=========== ===========
Net Income Per Common Share--Basic . . . . . . . . . . . . . . $ 0.48 $ 0.47
=========== ===========
Net Income Per Common Share--Diluted . . . . . . . . . . . . . $ 0.48 $ 0.47
=========== ===========
Funds from Operations:
Net Income Available to Common Shareholders. . . . . . . . . . $ 24,969 $ 24,478
Depreciation and Amortization. . . . . . . . . . . . . . . . . 19,392 17,476
Depreciation and Amortization of Unconsolidated Joint Ventures 434 475
Gain on Sale of Properties . . . . . . . . . . . . . . . . . . (880) (1,221)
----------- -----------
Funds from Operations. . . . . . . . . . . . . . . . . . . . $ 43,915 $ 41,208
=========== ===========
Funds from Operations Per Common Share--Basic. . . . . . . . . $ 0.84 $ 0.80
=========== ===========
Funds from Operations Per Common Share--Diluted. . . . . . . . $ 0.84 $ 0.79
=========== ===========
Weighted Average Shares Outstanding--Basic . . . . . . . . . . 52,091 51,686
=========== ===========
Weighted Average Shares Outstanding--Diluted . . . . . . . . . 54,017 52,061
=========== ===========
March 31, December 31,
2003 2002
CONSOLIDATED BALANCE SHEETS (Unaudited) (Audited)
------------ ------------
Property . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,762,271 $ 2,695,286
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . (475,034) (460,832)
Investment in Real Estate Joint Ventures . . . . . . . . . . . 28,574 28,738
Notes Receivable . . . . . . . . . . . . . . . . . . . . . . . 18,304 14,747
Unamortized Debt and Lease Costs . . . . . . . . . . . . . . . 50,614 48,377
Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . 94,322 97,573
------------ ------------
Total Assets . . . . . . . . . . . . . . . . . . . $ 2,479,051 $ 2,423,889
============ ============
Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,423,143 $ 1,330,369
Accounts Payable and Accrued Expenses. . . . . . . . . . . . . 48,025 81,488
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,074 23,636
------------ ------------
Total Liabilities. . . . . . . . . . . . . . . . . . . . . . 1,492,242 1,435,493
------------ ------------
Minority Interest. . . . . . . . . . . . . . . . . . . . . . . 57,238 54,983
------------ ------------
Preferred Shares of Beneficial Interest. . . . . . . . . . . . 263 263
Common Shares of Beneficial Interest . . . . . . . . . . . . . 1,560 1,559
Capital Surplus. . . . . . . . . . . . . . . . . . . . . . . . 1,083,227 1,082,046
Accumulated Dividends in Excess of Net Income. . . . . . . . . (153,366) (147,853)
Accumulated Other Comprehensive Loss . . . . . . . . . . . . . (2,113) (2,602)
------------ ------------
Total Shareholders' Equity . . . . . . . . . . . . . . . . . 929,571 933,413
------------ ------------
Total Liabilities and Shareholders' Equity . . . . $ 2,479,051 $ 2,423,889
============ ============