Weingarten Realty Increases Same Property NOI by 5.1% and Increases Dividend by 5.2%

Thu Feb 14, 2013 4:10pm EST

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HOUSTON--(Business Wire)--
Weingarten Realty (NYSE: WRI) announced today the results of its operations for
the fourth quarter and full year ended December 31, 2012. 

Fourth Quarter Operating and Financial Highlights

* Recurring Funds from Operations ("FFO") was $0.47 per diluted share;

* Same Property Net Operating Income ("NOI") for retail properties increased by
5.1% over the fourth quarter of the prior year which is the highest reported
increase since the fourth quarter of 2005; 
* Retail occupancy improved to 93.7% during the fourth quarter, up from 93.0% in
the fourth quarter of last year; and 
* The Board of Trust Managers increased the common dividend per share 5.2% to
$0.305 per quarter or $1.22 on an annualized basis.

Financial Results

The Company reported net income attributable to common shareholders of $42.9
million or $0.35 per diluted share (hereinafter "per share") for the fourth
quarter of 2012, as compared to $22.2 million or $0.18 per share for the same
period in 2011. For the full year 2012, the Company reported net income of
$109.2 million or $0.90 per share compared to a net loss of $19.9 million or
($0.17) per share for the full year 2011. Included in net income for both 2012
and 2011 were gains on the sale of properties and partnership interests of $0.69
and $0.10 per share, respectively. Included in 2012 and 2011 were non-cash
impairments of $0.29 and $0.65, respectively. 

For the current quarter, Reported FFO was $57.0 million or $0.46 per share
compared to $58.1 million or $0.48 per share for 2011. Reported FFO for 2011
excludes impairments of operating properties of $0.02 per share. Recurring FFO
for the fourth quarter of 2012 was $0.47 per share or $58.6 million. For the
same quarter last year, Recurring FFO was $0.48 per share or $58.5 million. This
decrease in Recurring FFO per share over the prior year was primarily due to the
sale of $706.7 million of non-core assets during the year, offset by the
Company`s acquisition and new development programs, increased operating income
from the existing portfolio and reduced interest expense due to favorable
refinancing transactions. 

For the full year ended December 31, 2012, Reported FFO was $222.1 million or
$1.83 per share compared to $173.3 million or $1.44 per share for 2011. Reported
FFO excludes impairments of operating properties of $0.29 per share in both 2012
and 2011. Recurring FFO for 2012 was $227.7 million or $1.87 per share compared
to $217.7 million or $1.81 per share for 2011. Recurring FFO excludes additional
impairments of non-operating assets of $0.36 per share in 2011. The increase in
Recurring FFO, consistent with the quarter, was primarily due to the Company`s
acquisition, disposition and new development programs, improvements in the
existing portfolio and reduced interest expense. 

A reconciliation of net income to both Reported and Recurring FFO is shown on
the attached financial statement page and is also shown on page 5 of the
supplemental package. The Company has also introduced enhanced disclosure in the
supplemental package of Net Debt to Adjusted EBITDA on page 8 and portfolio
information found on pages 24-41. 

Operating Results

Same Property NOI during the fourth quarter increased by 5.1% versus a year ago.
These results are primarily driven by leases that were previously signed but
commenced during the quarter. Retail occupancy increased to 93.7% in the fourth
quarter from 93.0% in the same quarter of 2011. This increase was slightly muted
by the early stabilization of nine new development properties during the
quarter. Excluding those nine assets, retail occupancy would have been 93.9%. 

The Company produced solid leasing results again during the fourth quarter with
350 new leases and renewals totaling 1.1 million square feet and representing
$17 million of annual revenue. The 350 transactions were comprised of 148 new
leases and 202 renewals, representing annual revenues of $6.2 million and $10.8
million, respectively. The average rental rate increase on new leases and
renewals signed during the quarter was a solid 7.1%. 

"We are proud of the results our team achieved not only this quarter but
throughout the year. The 5.1% increase in Same Property NOI for the quarter was
truly outstanding and is a testament to the strength of our quality portfolio
and the exceptional efforts of our associates," said Johnny Hendrix, Executive
Vice President and Chief Operating Officer. 

Capital Recycling

During the quarter, the Company sold seven retail shopping centers, two
industrial properties, its interest in an industrial partnership and a land
parcel for a total of $141.6 million. For the year, dispositions totaled $706.7
million, which included the sale of the Company`s industrial portfolio as well
as the exit from seven non-strategic markets in the retail portfolio. Over the
year, the Company redeployed this capital into outstanding new investments.
Acquisitions for the year totaled $235.3 million and spending on existing new
development projects was an additional $30.2 million for the year. 

"With dispositions for the year exceeding $700 million, we generated a
significant amount of capital to recycle into higher quality investments in our
target markets, and to also materially deleverage our balance sheet," said Drew
Alexander, President and Chief Executive Officer. 

Balance Sheet

In October, the Company closed on the sale of $300 million of 3.375% ten-year
notes. The notes were sold at a discount to par to yield interest at 3.42%. The
proceeds from the transaction were used to pay down all amounts outstanding
under the Company`s $500 million revolving credit facility and to redeem $54.1
million of its 3.95% Convertible Notes and $72.5 million of its 6.95% Series E
Preferred Shares. 

"The $300 million notes offering was exceptionally well received by the market
as the transaction was more than six times over-subscribed with $1.2 billion of
demand. The sale of these notes allowed us to lock in very favorable long-term
rates for ten years and pay off our revolving credit facility to provide
liquidity for future debt maturities and growth opportunities," said Steve
Richter, Executive Vice President and Chief Financial Officer. 

Dividend

On February 14, 2013, the Board of Trust Managers declared an increase in the
common dividend to $0.305 per share for the first quarter of 2013. This
represents a 5.2% increase resulting in an annualized dividend of $1.22 per
share. The dividend is payable in cash on March 15, 2013 to shareholders of
record on March 7, 2013. 

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
6.50% Series F Cumulative Redeemable Preferred Shares (NYSE:WRIPrF) are $0.40625
per share for the quarter. All preferred dividends are also payable on March 15,
2013 to shareholders of record on March 7, 2013. 

Recurring FFO Guidance

The Company`s full year Recurring FFO guidance remains in the range of $1.84 to
$1.90 per share. This guidance assumes the following estimates:

     Dispositions                                $200 million to $300 million  
     Acquisitions                                $175 million to $225 million  
     Incremental new development investment      $25 million to $75 million    
     Same Property NOI                           +2% to +3%                    


Please refer to the full list of guidance information found on page 9 of the
supplemental package. 

Conference Call Information

The Company also announced that it will host a live webcast of its quarterly
conference call on February 15, 2013 at 10:00 a.m. Central Time. The live
webcast can be accessed via the Company`s website at www.weingarten.com.
Alternatively, if you are not able to access the call on the web, you can listen
live by phone by calling (888)-771-4371 (conference ID # 32913536). A replay and
will be available through the Company`s web site starting approximately two
hours following the live call. 

About Weingarten Realty Investors

Weingarten Realty Investors (NYSE: WRI) is a commercial real estate owner,
manager and developer. At December 31, 2012, the Company owned or operated under
long-term leases, either directly or through its interest in real estate joint
ventures or partnerships, a total of 292 developed income-producing properties
and 2 properties under various stages of construction and development. The total
number of properties includes 288 neighborhood and community shopping centers
and 6 other operating properties located in 21 states spanning the country from
coast to coast representing approximately 53.7 million square feet. To learn
more about the Company`s operations and growth strategies, please visit
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.

 Weingarten Realty Investors                                                                                                                                                                                                                               
 (in thousands, except per share amounts)                                                                                                                                                                                                                  
 Financial Statements                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                           
                                                                                                                                          Three Months Ended                                                  Twelve Months Ended                          
                                                                                                                                          December 31,                                                        December 31,                                 
                                                                                                                                                     2012                                  2011                    2012                     2011           
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME                                                                                              (Unaudited)                                                         (Unaudited)                                  
 Rentals, net                                                                                                                             $          128,191                       $       116,752            $    491,369             $    464,234        
 Other Income                                                                                                                                        3,727                                 2,977                   12,169                   14,123         
                       Total Revenues                                                                                                                131,918                               119,729                 503,538                  478,357        
 Depreciation and Amortization                                                                                                                       37,851                                32,844                  140,983                  131,350        
 Operating Expense                                                                                                                                   25,440                                23,436                  98,426                   89,998         
 Real Estate Taxes, net                                                                                                                              14,363                                13,353                  58,077                   55,522         
 Impairment Loss                                                                                                                                     -                                     3,101                   9,982                    55,574         
 General and Administrative Expense                                                                                                                  7,448                                 6,579                   28,554                   25,477         
                       Total Expenses                                                                                                                85,102                                79,313                  336,022                  357,921        
 Operating Income                                                                                                                                    46,816                                40,416                  167,516                  120,436        
 Interest Expense, net                                                                                                                               (27,224    )                          (31,449  )              (115,812  )              (139,717  )    
 Interest and Other Income, net                                                                                                                      1,262                                 2,078                   6,048                    5,062          
 Gain on Sale of Real Estate Joint Venture and Partnership Interests                                                                                 8,641                                 -                       14,203                   -              
 Equity in Earnings (Losses) of Real Estate Joint Ventures and Partnerships, net                                                                     5,157                                 3,892                   (1,558    )              7,834          
 Gain on Acquisition                                                                                                                                 -                                     -                       1,869                    -              
 Benefit (Provision) for Income Taxes                                                                                                                393                                   (202     )              (79       )              (146      )    
                       Income (Loss) from Continuing Operations                                                                                      35,045                                14,735                  72,187                   (6,531    )    
 Operating Income from Discontinued Operations                                                                                                       890                                   8,057                   10,611                   11,318         
 Gain on Sale of Property from Discontinued Operations                                                                                               18,865                                9,687                   68,589                   10,273         
                       Income from Discontinued Operations                                                                                           19,755                                17,744                  79,200                   21,591         
 Gain on Sale of Property                                                                                                                            175                                   91                      1,034                    1,679          
 Net Income                                                                                                                                          54,975                                32,570                  152,421                  16,739         
 Less:                 Net Income Attributable to Noncontrolling Interests                                                                           (1,224     )                          (1,528   )              (5,781    )              (1,118    )    
 Net Income Adjusted for Noncontrolling Interests                                                                                                    53,751                                31,042                  146,640                  15,621         
 Less:                 Preferred Share Dividends                                                                                                     (8,323     )                          (8,869   )              (34,930   )              (35,476   )    
 Less:                 Redemption Costs of Preferred Shares                                                                                          (2,500     )                          -                       (2,500    )              -              
 Net Income (Loss) Attributable to Common Shareholders -- Basic                                                                           $          42,928                        $       22,173             $    109,210             $    (19,855   )    
                                                                                                                                                                                                                                                           
 Net Income (Loss) Attributable to Common Shareholders -- Diluted                                                                         $          43,355                        $       22,173             $    109,210             $    (19,855   )    
                                                                                                                                                                                                                                                           
 FUNDS FROM OPERATIONS                                                                                                                                                                                                                                     
 Numerator:                                                                                                                                                                                                                                                
                       Net Income (Loss) Attributable to Common Shareholders                                                              $          42,928                        $       22,173             $    109,210             $    (19,855   )    
                       Depreciation and Amortization                                                                                                 37,232                                37,271                  143,783                  150,668        
                       Depreciation and Amortization of Unconsolidated Real Estate                                                                                                                                                                         
                                                  Joint Ventures and Partnerships                                                                    4,694                                 5,605                   20,955                   22,887         
                       Impairment of Operating Properties and Real Estate Equity Investments                                                         26                                    2,780                   15,033                   28,995         
                       Impairment of Operating Properties of Unconsolidated Real Estate                                                                                                                                                                    
                                                  Joint Ventures and Partnerships                                                                    -                                     -                       19,946                   7,025          
                       Gain on Acquisition                                                                                                           -                                     -                       (1,869    )              (4,559    )    
                       Gain on Sale of Property and Interests in Real Estate Equity Investments                                                      (27,636    )                          (9,717   )              (83,683   )              (11,846   )    
                       (Gain) Loss on Sale of Property of Unconsolidated Real Estate                                                                                                                                                                       
                                                  Joint Ventures and Partnerships                                                                    (689       )                          -                       (1,247    )              10             
                       Funds from Operations -- Basic                                                                                                56,555                                58,112                  222,128                  173,325        
                       Funds from Operations Attributable to Operating Partnership Units                                                             427                                   -                       -                        -              
                       Funds from Operations -- Diluted                                                                                              56,982                                58,112                  222,128                  173,325        
                       Adjustments for Recurring FFO:                                                                                                                                                                                                      
                                                  Other Impairment Loss, net of tax                                                                  -                                     355                     403                      42,417         
                                                  Severance Costs                                                                                    702                                   -                       2,825                    -              
                                                  Litigation Settlement, net of tax                                                                  -                                     -                       -                        (1,040    )    
                                                  Redemption Costs of Preferred Shares                                                               2,500                                 -                       2,500                    -              
                                                  Extinguishment of Debt Costs, net of tax                                                           (1,650     )                          -                       (1,650    )              2,679          
                                                  Acquisition Costs                                                                                  21                                    19                      1,494                    295            
                       Recurring Funds from Operations -- Diluted                                                                         $          58,555                        $       58,486             $    227,700             $    217,676        
                                                                                                                                                                                                                                                           
 Denominator:                                                                                                                                                                                                                                              
                       Weighted Average Shares Outstanding -- Basic                                                                                  120,871                               120,422                 120,696                  120,331        
                                                                                                                                                                                                                                                           
                       Weighted Average Shares Outstanding -- Diluted                                                                                123,471                               121,237                 121,705                  120,331        
                                                                                                                                                                                                                                                           
 PER SHARE DATA                                                                                                                                                                                                                                            
 Earnings Per Common Share -- Basic                                                                                                       $          0.36                          $       0.18               $    0.90                $    (0.17     )    
                                                                                                                                                                                                                                                           
 Earnings Per Common Share -- Diluted                                                                                                     $          0.35                          $       0.18               $    0.90                $    (0.17     )    
                                                                                                                                                                                                                                                           
 FFO -- Per Diluted Share                                                                                                                                                                                                                                  
                       Net Income (Loss) Attributable to Common Shareholders per Share                                                    $          0.35                          $       0.18               $    0.90                $    (0.17     )    
                                                  Adjustments for Reported FFO:                                                                                                                                                                            
                                                                             Impairment of Operating Properties                                      0.00                                  0.02                    0.29                     0.30           
                                                                             Depreciation, Amortization and Other Adjustments                        0.11                                  0.28                    0.64                     1.31           
                       Reported Funds from Operations -- Diluted per Share                                                                $          0.46                          $       0.48               $    1.83                $    1.44           
                                                  Adjustments for Recurring FFO:                                                                                                                                                                           
                                                                             Other Impairment Loss, net of tax                                       0.00                                  0.00                    0.00                     0.36           
                                                                             All Other Adjustments                                                   0.01                                  0.00                    0.04                     0.01           
                       Recurring Funds from Operations -- Diluted per Share                                                               $          0.47                          $       0.48               $    1.87                $    1.81           
                                                                                                                                                                                                                                                           


 Weingarten Realty Investors                                                                                                   
 (in thousands)                                                                                                                
 Financial Statements                                                                                                          
                                                                                                                               
                                                                                                                               
                                                                         December 31,                December 31,              
                                                                                2012                        2011               
 CONDENSED CONSOLIDATED BALANCE SHEETS                                   (Unaudited)                 (Audited)                 
 ASSETS                                                                                                                        
                                                                                                                               
 Property                                                                $      4,399,850            $      4,688,526          
 Accumulated Depreciation                                                       (1,040,839  )               (1,059,531  )      
 Property Held for Sale, net                                                    -                           73,241             
 Investment in Real Estate Joint Ventures and Partnerships, net                 289,049                     341,608            
 Notes Receivable from Real Estate Joint Ventures and Partnerships              89,776                      149,204            
 Unamortized Debt and Lease Costs, net                                          135,783                     115,191            
 Accrued Rent and Accounts Receivable, net                                      79,540                      86,530             
 Cash and Cash Equivalents                                                      19,604                      13,642             
 Restricted Deposits and Mortgage Escrows                                       44,096                      11,144             
 Other, net                                                                     167,925                     168,671            
                                    Total Assets                         $      4,184,784            $      4,588,226          
                                                                                                                               
 LIABILITIES AND EQUITY                                                                                                        
                                                                                                                               
 Debt, net                                                               $      2,204,030            $      2,531,837          
 Accounts Payable and Accrued Expenses                                          119,699                     124,888            
 Other, net                                                                     120,900                     107,919            
                                    Total Liabilities                           2,444,629                   2,764,644          
                                                                                                                               
 Commitments and Contingencies                                                                                                 
                                                                                                                               
 EQUITY                                                                                                                        
                                                                                                                               
 Preferred Shares of Beneficial Interest                                        7                           8                  
 Common Shares of Beneficial Interest                                           3,663                       3,641              
 Additional Paid-In Capital                                                     1,934,183                   1,983,978          
 Net Income Less Than Accumulated Dividends                                     (335,980    )               (304,504    )      
 Accumulated Other Comprehensive Loss                                           (24,743     )               (27,743     )      
                                    Shareholders' Equity                        1,577,130                   1,655,380          
 Noncontrolling Interests                                                       163,025                     168,202            
                                    Total Liabilities and Equity         $      4,184,784            $      4,588,226          


Weingarten Realty
Michelle Wiggs, 713-866-6050 



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