WRI Weingarten Realty Investors

Weingarten Realty Investors Announces First Quarter 2004 FFO Up 18.9% HOUSTON, April 26 /PRNewswire-FirstCall/ -- Weingarten Realty Investors announced today the results of its first quarter ended March 31, 2004. All per share amounts are adjusted for WRI's 3 for 2 share split completed on March 30, 2004: -- Net income available to common shareholders increased to $27.1 million, as compared to $25.0 million in the first quarter 2003, an increase of 8.4%. -- Funds from Operations (FFO), considered the most meaningful performance measurement within the REIT industry, increased to $52.2 million for the first quarter of 2004 from $43.9 million for the same period in 2003, an 18.9% increase. On a diluted per share basis, FFO increased to $.62 per share as compared to $.56 per share for the same quarter of the previous year, a 10.7% increase. -- Rental revenues for the first quarter of 2004 were $116.0 million, up from $96.4 million for the first quarter of 2003, a 20.3% increase. -- Weingarten invested $240.9 million in acquisitions and new development projects. -- The Company raised $121.1 million through the sale of 3.6 million common shares at $33.64 per share, and issued $200 million of medium-term notes with 10-year maturities and an effective weighted average interest rate of 5.2%. -- Weingarten called for the redemption of its 7.0% Cumulative Redeemable Preferred C Shares totaling $112.6 million, effective April 1, 2004. -- Occupancy of the overall portfolio was reported at 93.5% for the first quarter of 2004, up from 91.8% for the first quarter of 2003. Occupancy for the retail properties was 93.5% at March 31, 2004 as compared to 92.6% at March 31, 2003, and the industrial portfolio's occupancy increased to 93.2% from 89.0% for the first quarter of 2003. -- The Company completed a 3 for 2 share split on March 30, 2004 to shareholders of record on March 16, 2004. -- The Board of Trust Managers declared a dividend of $.415 per common share for the first quarter of 2004, up from $.39 per common share in 2003, both on a post-split basis. On an annualized basis, this represents a dividend of $1.66 per share as compared to $1.56 per share for the prior year, a 6.4% increase. The dividend is payable on June 15, 2004 to shareholders of record on June 4, 2004. This represents a common dividend payout ratio of 68.1% of Funds from Operations. 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 coming on- line, as well as to increased rental revenues from the existing portfolio. Alexander commented, "Weingarten had an extremely successful quarter with respect to acquisitions, purchasing seven shopping centers totaling 1.5 million square feet with a total investment of $230.4 million and a projected return of slightly over 8%. We currently have a number of potential acquisitions in various stages of due diligence, and, combined with these first quarter acquisitions, we are very comfortable that we will achieve our 2004 acquisition plan of $400 million." Alexander also reported that the Company currently has 13 retail development properties in various stages of construction. During the first quarter of 2004, Weingarten invested $10.5 million in these properties, which are currently 86% leased. Upon completion, these developments will represent an investment of approximately $129 million and will add 937,000 square feet to the portfolio. All 13 retail developments are anchored either by a market- dominant supermarket or a national discount department store such as Target or Wal-Mart, and will come on-line during the remainder of 2004 and into 2005. With respect to the existing portfolio, Alexander noted that the Company completed 264 new leases or renewals totaling 973,000 square feet during the first quarter 2004, with an average rental rate increase of 8.5% on a same- space basis from first quarter 2003. Net of capital costs associated with improvements to the leased spaces, rental rates increased 6.4%. Alexander further commented with regard to financing activities, "During the first quarter we issued 3.6 million common shares at $33.64. The net proceeds of $118 million were primarily used to redeem our 7.0% Cumulative Redeemable Series C Preferred Shares totaling $112.6 million, which were called on March 2, 2004 and redeemed on April 1, 2004. We also continued our practice of refinancing short-term, variable-rate debt under our revolving line of credit with longer-term, fixed-rate debt. During the quarter ended March 31, 2004, we issued a total of $200 million of 10-year medium-term notes through three separate transactions with an effective weighted average interest rate of 5.2%. Although these transactions have a negative impact on our interest expense, we believe it is prudent to reduce Weingarten's exposure to future interest rate increases." Alexander stated, "We are extremely optimistic about the balance of 2004 as we work to maximize the potential of our existing portfolio, assess acquisition and development opportunities and evaluate alternative financing opportunities that will benefit Weingarten over the long-term. Subsequent to March 31, 2004, we acquired 50% joint venture interests in three shopping centers in McAllen, Texas totaling 467,900 square feet. In April, we issued an additional $50 million 10-year medium-term note with an effective interest rate of 4.8%, further fixing favorable longer-term debt in order to pay down our revolver, which resulted in lowering our variable-rate debt to only 18% of total debt. Leasing activity remains strong, and we expect occupancy to continue to increase." The Board of Trust Managers also declared dividends on the Company's 6.75% Series D Cumulative Redeemable Preferred Shares (NYSE:WRIPrD) of $.421875 per share, payable on June 15, 2004 to shareholders of record on June 4, 2004. The Company also announced that it will host a live webcast of its quarterly conference call on Monday, April 26, 2004 at 10:00 a.m. Central Time. The webcast can be accessed via the Company's website at http://www.weingarten.com/ . A replay is also available at the website starting approximately two hours following the live call or can be heard by calling 877-519-4471, identification number 4672658 for the following 24 hours. Weingarten Realty Investors is a Houston, Texas based real estate investment trust with 337 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 276 neighborhood and community shopping centers and 61 industrial properties aggregating 44.8 million square feet. Weingarten has one of the most diversified tenant bases of any major REIT in its sector, with the largest of its 4,900 tenants comprising less than 3% of its rental revenues. 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 http://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 that are reported on a post-split basis) Three Months Ended March 31, STATEMENTS OF CONSOLIDATED INCOME AND 2004 2003 FUNDS FROM OPERATIONS (Unaudited) Rental Income $116,001 $96,383 Interest Income 276 246 Other Income 1,571 1,018 Total Revenues 117,848 97,647 Depreciation and Amortization 26,663 21,057 Interest Expense 27,733 19,439 Operating Expense 17,214 14,047 Ad Valorem Taxes 14,527 11,419 General and Administrative Expense 4,026 3,057 Total Expenses 90,163 69,019 Operating Income 27,685 28,628 Equity in Earnings of Joint Ventures 1,286 1,038 Income Allocated to Minority Interests (879) (895) Gain on Sale of Properties 317 9 Income Before Discontinued Operations 28,409 28,780 Operating Income From Discontinued Operations 240 Gain on Sale of Properties 871 Income from Discontinued Operations 1,111 Net Income 28,409 29,891 Less: Preferred Dividends 1,266 4,922 Net Income Available to Common Shareholders--Basic $27,143 $24,969 Net Income Per Common Share--Basic $0.33 $0.32 Net Income Available to Common Shareholders--Diluted $27,969 $25,801 Net Income Per Common Share--Diluted $0.32 $0.32 Funds from Operations: Net Income Available to Common Shareholders $27,143 $24,969 Depreciation and Amortization 24,754 19,392 Depreciation and Amortization of Unconsolidated Joint Ventures 657 434 Gain on Sale of Properties (317) (880) Funds from Operations--Basic $52,237 $43,915 Funds from Operations Per Common Share--Basic $0.63 $0.56 Funds from Operations--Diluted $53,567 $45,178 Funds from Operations Per Common Share--Diluted $0.62 $0.56 Weighted Average Shares Outstanding-- Basic 83,143 78,136 Weighted Average Shares Outstanding-- Diluted 86,281 81,026 March 31, December 31, 2004 2003 CONSOLIDATED BALANCE SHEETS (Unaudited) (Audited) Property $3,447,492 $3,200,091 Accumulated Depreciation (549,714) (527,375) Investment in Real Estate Joint Ventures 35,671 35,085 Notes Receivable 41,705 36,825 Unamortized Debt and Lease Costs 78,170 70,895 Accrued Rent and Accounts Receivable, net 29,244 40,325 Cash and Cash Equivalents 34,455 20,255 Other Assets 52,152 46,993 Total Assets $3,169,175 $2,923,094 Debt $1,947,070 $1,810,706 Preferred Shares Subject to Mandatory Redemption, net 109,378 109,364 Accounts Payable and Accrued Expenses 52,466 78,986 Other 77,558 52,671 Total Liabilities 2,186,472 2,051,727 Minority Interest 56,033 49,804 Preferred Shares of Beneficial Interest 90 90 Common Shares of Beneficial Interest 2,562 2,488 Capital Surplus 1,112,768 993,570 Accumulated Dividends in Excess of Net Income (182,670) (174,234) Accumulated Other Comprehensive Loss (6,080) (351) Total Shareholders' Equity 926,670 821,563 Total Liabilities and Shareholders' Equity $3,169,175 $2,923,094 Note: Certain reclassifications of prior years' amounts have been made to conform with the current year presentation. http://www.newscom.com/cgi-bin/prnh/19991216/WRILOGO DATASOURCE: Weingarten Realty Investors CONTACT: Tracy Pursell of Weingarten Realty Investors, +1-713-866-6050 Web site: http://www.weingarten.com/

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