Weingarten Realty Investors (WRI) Declares $0.18 Quarterly Dividend; Provides Update

Weingarten Realty Investors (NYSE: WRI) declared a quarterly dividend of $0.18 per share, or $0.72 annualized.

The dividend will be payable on October 13, 2020, to stockholders of record on October 8, 2020, with an ex-dividend date of October 7, 2020.

The annual yield on the dividend is 4.2 percent.

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Weingarten Realty (NYSE: WRI) declares its quarterly dividend and provides an update on property operations impacted by COVID-19. To view the Company’s updated investor presentation, please visit the BofA 2020 Global RE Conference on our Webcasts & Presentations page at www.weingarten.com.

“As the severity of the pandemic trends downward, we are seeing some improvements in the economy, as well as our own operating metrics. While this unprecedented crisis is far from over, we are cautiously optimistic that this upward trend in the economy will continue. As always, we want to wish the best to all the first line responders, including the many associates at our retailers. Our sympathies continue to go out to those affected by this crisis. We remain focused on the safety and well-being of our associates, tenants, stakeholders and the broader community. Our transformed portfolio, primarily grocery-anchored centers providing basic goods and services, continues to perform well even in these challenging times,” said Drew Alexander, Chairman, President and Chief Executive Officer.

Dividends

Today WRI announced that its Board of Trust Managers declared a quarterly cash dividend of $0.18 per common share, payable on October 13, 2020 to shareholders of record on October 8, 2020. As communicated last quarter, the Company is paying its quarterly cash dividend of $0.18 per share earlier due to an election made last year to shift dividend payments from 2019 to 2020.

Year-to-date, the Company has completed dispositions of $152 million including $64 million subsequent to June 30, 2020. As such, it is likely the Company will need to pay a special dividend near year-end to cover additional 2020 taxable income due to gains on these sales; however, the amount of any special dividend is uncertain at this time. The Company will continue to monitor tenant collections, evaluate its operations and financial position and will adjust future dividends as appropriate.

Improving Portfolio Results

The Company’s transformed portfolio, which is 80% supermarket anchored, is very strong and diversified with 165 shopping centers located in 16 states primarily in the south and western United States at June 30, 2020. Additionally, over 75% of the average base rent of the portfolio comes from national and regional tenants.

Cash collections to-date for July rent have now reached 88% as compared to 82% as reported in our second quarter press release. Further, the Company negotiated deferral agreements for 6% of July rent. Currently, August cash collections total 88% of rents. In addition, to date, there are 2% of August rent deferrals. Payments of previously deferred balances received during July and August totaled $0.5 million, which was 86% of deferrals due during those months. The Company’s collection rates continue to be among the highest in the shopping center sector.

“As we wait to see how Labor Day weekend and the return to school will impact the various measurements relating to the pandemic, we are hopeful that the economy will continue the improvement we have experienced thus far in the third quarter. Our cash collections have continued to improve and we are beginning to see some positive leasing activity while we continue to work closely with our existing tenants as they rebuild their business to pre-COVID levels,” said Johnny Hendrix, Executive Vice President and Chief Operating Officer.

Liquidity

The Company’s balance sheet was further strengthened since quarter-end with proceeds from its disposition program. With low leverage and no material maturities until the fourth quarter of 2022, the Company has adequate liquidity to restore its properties to their full operating potential in addition to funding the dividend payments described herein.

“With $34 million of excess cash balances, full availability under our $500 million revolver, cash collections trending at higher levels than originally projected, and access to numerous other sources of capital, we remain comfortable with our ability to meet all liquidity needs going forward, including completion of our development projects and any additional dividends required by our disposition activity,” said Steve Richter, Executive Vice President and Chief Financial Officer.

For a dividend history and other dividend-related data on Weingarten Realty Investors (WRI) click here.

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