[GRAPHIC OMITTED]
WEINGARTEN REALTY INVESTORS 2600 Citadel Plaza Drive
Houston, Texas 77008
P.O. Box 924133
Houston, Texas 77292-4133
(713) 866-6000 (713) 866-6049 Fax
NEWS RELEASE
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Information: Tracy Pursell
(713) 866-6050
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WEINGARTEN REALTY INVESTORS ANNOUNCES
SECOND QUARTER EARNINGS . . .
FUNDS FROM OPERATIONS INCREASES 15.1%
Houston, Texas, July 29, 2002: Weingarten Realty Investors (NYSE:WRI) announced
today the results of its second quarter, ended June 30, 2002. All per share
amounts are adjusted for WRI's 3 for 2 share split, effective April 15, 2002.
- Funds from Operations (FFO) increased to $42.6 million for the second
quarter 2002 from $37.0 million for the same period in 2001, a 15.1%
increase. On a diluted per share basis, FFO increased to $.81 per
share as compared to $.77 per share for the same quarter of the
previous year, a 5.2% increase.
- Net income available to common shareholders increased 25.7% to $26.4
million, as compared to $21.0 million in the second quarter 2001. This
represents $.51 per diluted share for the second quarter 2002, as
compared to $.43 per diluted share in 2001.
- Rental revenues for the second quarter of 2002 were $90.3 million, up
from $76.5 million for the second quarter of 2001, for an 18.0%
increase.
- Occupancy of the overall portfolio was reported at 91.3% for the
second quarter of 2002, down slightly from 92.7% for the same quarter
in 2001. Occupancy for the retail properties (which represents 89% of
our revenues) was down slightly at 91.9% at the end of the second
quarter as compared to 92.8% for the same quarter of the prior year.
This is due totally to the anticipated effect of the vacancies caused
by the Kmart and Service Merchandise bankruptcies, which were
previously reported.
- The Board of Trust Managers declared a dividend of $.555 per common
share for the second quarter of 2002, up from $.526 per common share
in 2001, both on a post-split basis. On an annualized basis, this
represents a dividend of $2.22 per share as compared to $2.11 per
share for the prior year, a 5.4 % increase. The dividend is payable on
September 13, 2002 to shareholders of record on August 13, 2002.
In announcing the results for the second quarter and the first six months, Drew
Alexander, President and Chief Executive Officer, attributed the overall
increases in operating performance to acquisitions made so far in 2002, as well
as to the ongoing new development program and increased rental rates on new
leases and renewals within the existing portfolio. He indicated that in the
first six months of 2002, the Company completed 584 new leases or renewals
totaling 2.3 million square feet with an average increase of 9.9% in the rental
rates on a same-store basis. Net of capital costs, rental rates increased 8.1%.
This compares very favorably to 422 new leases or renewals totaling 1.7 million
square feet for the same period in 2001.
Alexander reported that 11 acquisitions were added to the portfolio during the
first six months of 2002, including seven Raleigh-Durham, North Carolina,
properties that were purchased from Bob Hughes and Associates and related
partnerships. The 11 properties, all supermarket-anchored shopping centers,
aggregate 1.7 million square feet, represent an investment of $161.3 million and
have an average projected return of 9.8%.
"Our activity during the first six months of this year has provided us with
exceptional operating results", stated Alexander. "We have completed a
considerable number of acquisitions thus far, and have others under review that
we hope to close prior to year-end. Our new development program also remains
extremely active with 17 projects in various stages of development." Alexander
noted that the new developments, all anchored by supermarkets and/or major
discount stores, are being built in several key markets including Dallas, Las
Vegas, Phoenix and several cities in Louisiana.
With respect to the slight decrease in overall occupancy rates, Alexander stated
that the decrease is due to three Kmart and two Service Merchandise stores that
were vacated during the second quarter, representing approximately 370,000
square feet of the retail portfolio. Alexander commented, "As we have
previously disclosed, these vacancies were anticipated by management, and the
calculated effect was included in the Company's earnings guidance for the year."
Alexander added that if it were not for these five spaces, occupancy would have
actually improved overall. Due to the strong leasing activity discussed above,
Alexander indicated that management is comfortable that these vacancies will be
re-leased in the coming months.
Alexander also reported that subsequent to quarter-end, the Company issued $62
million in medium term notes in order to take advantage of the favorable
long-term interest rate environment. The notes were issued at a weighted
average fixed rate of 5.7% and weighted average term of 8.4 years. He
commented, "We were pleased that, due to our high debt ratings (A/A3 with
Standard and Poors and Moody's, respectively), we were able to fix the rates on
longer-term debt and pay down our $350 million revolving credit facility." He
noted that this practice not only reduces the Company's exposure to future
interest rate increases but also continues Weingarten's practice of carefully
staggering their future debt maturities.
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 September 30, 2002 to shareholders of
record on September 16, 2002. The 7.125% Series B Cumulative Redeemable
Preferred Shares dividend of $.4453 per share is payable on September 16, 2002
to shareholders of record on September 2, 2002, and the 7.00% Series C
Cumulative Redeemable Preferred Shares (NYSE:WRIPrC) dividend of $.875 per share
is payable on September 16, 2002 to shareholders of record on September 2, 2002.
The Company also announced that it will host a live webcast of its quarterly
conference call on Monday, July 29, 2002 at 9:00 a.m. Central Time. The webcast
can be accessed via the Company's website at www.weingarten.com. A replay of
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the call will be available by calling 800-633-8625, identification number
20736771, for the following 24 hours, and will also be archived at the website
for up to 90 days.
Weingarten Realty Investors is a Houston, Texas based real estate investment
trust with 297 income-producing properties in 18 states that spans the southern
half of the United States from coast to coast. Included in the portfolio are
239 anchored neighborhood and community shopping centers, 57 industrial
properties and one office building aggregating 37.3 million square feet. The
Company's common shares are listed on the New York Stock Exchange, trading under
the symbol, "WRI".
#
NOTE: The Company has issued a supplemental package in conjunction with this
press release. To view or download, please visit Weingarten's website at
www.weingarten.com, click on Investor Relations, Reports and then on Second
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Quarter Supplemental Financial Information.
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 that are reported on a post-share split basis)
Three Months Ended Six Months Ended
June 30, June 30,
STATEMENTS OF CONSOLIDATED INCOME AND 2002 2001 2002 2001
FUNDS FROM OPERATIONS (Unaudited) (Unaudited)
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Rental Income $ 90,338 $ 76,493 $174,597 $142,392
Interest Income 231 349 431 649
Other Income 1,257 1,539 2,018 2,347
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Total Revenues 91,826 78,381 177,046 145,388
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Depreciation and Amortization 19,291 16,541 37,186 31,976
Interest Expense 16,532 14,522 31,528 25,395
Operating Expense 13,623 10,749 25,980 20,526
Ad Valorem Taxes 10,860 9,596 21,141 18,021
General and Administrative Expense 3,398 2,729 6,074 5,104
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Total Expenses 63,704 54,137 121,909 101,022
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Income Before Equity in Earnings of Joint Ventures, Minority
Interest in Income of Partnerships, Gain on Sale of Properties
and Discontinued Operations 28,122 24,244 55,137 44,366
Equity in Earnings of Joint Ventures 965 1,042 2,039 2,047
Minority Interest in Income of Partnerships (943) (115) (1,059) (182)
Gain on Sale of Properties 674 4,984
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Income Before Discontinued Operations 28,144 25,845 56,117 51,215
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Operating Income From Discontinued Operations 71 136 294 168
Gain on Sale of Properties 3,119 4,340
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Income from Discontinued Operations 3,190 136 4,634 168
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Net Income 31,334 25,981 60,751 51,383
Less: Preferred Dividends 4,939 5,010 9,878 10,020
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Net Income Available to Common Shareholders $ 26,395 $ 20,971 $ 50,873 $ 41,363
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Net Income Per Common Share--Basic $ 0.51 $ 0.44 $ 0.98 $ 0.89
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Net Income Per Common Share--Diluted $ 0.51 $ 0.43 $ 0.98 $ 0.88
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Funds from Operations:
Net Income Available to Common Shareholders $ 26,395 $ 20,971 $ 50,873 $ 41,363
Depreciation and Amortization 18,754 16,235 36,230 31,446
Depreciation and Amortization of Unconsolidated Joint Ventures 543 479 1,018 941
Gain on Sale of Properties (3,119) (674) (4,340) (4,984)
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Funds from Operations $ 42,573 $ 37,011 $ 83,781 $ 68,766
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Funds from Operations Per Common Share--Basic $ 0.82 $ 0.77 $ 1.62 $ 1.47
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Funds from Operations Per Common Share--Diluted $ 0.81 $ 0.77 $ 1.61 $ 1.47
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Weighted Average Shares Outstanding--Basic 51,926 48,135 51,806 46,658
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Weighted Average Shares Outstanding--Diluted 53,754 48,382 52,909 46,877
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June 30, December 31,
2002 2001
CONSOLIDATED BALANCE SHEETS (Unaudited) (Audited)
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Property $ 2,555,925 $2,352,393
Accumulated Depreciation (432,619) (402,958)
Investment in Real Estate Joint Ventures 30,732 25,742
Notes Receivable 6,351 6,068
Unamortized Debt and Lease Costs 46,775 42,755
Other Assets 92,017 71,747
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Total Assets $ 2,299,181 $2,095,747
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Debt $ 1,220,391 $1,070,835
Accounts Payable and Accrued Expenses 74,305 80,412
Other 22,588 19,542
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Total Liabilities 1,317,284 1,170,789
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Minority Interest 54,718 3,886
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Preferred Shares of Beneficial Interest 263 263
Common Shares of Beneficial Interest 1,556 1,548
Capital Surplus 1,079,015 1,066,757
Accumulated Dividends in Excess of Net Income (151,361) (144,560)
Accumulated Other Comprehensive Loss (2,294) (2,936)
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Total Shareholders' Equity 927,179 921,072
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Total Liabilities and Shareholders' Equity $ 2,299,181 $2,095,747
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