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Investor Presentation November 2013

MOVING FORWARD. 8000 Sunset Strip Shopping Center Los Angeles, CA


Safe Harbor Management’s intentions, hopes, beliefs, expectations or predictions for 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 which may impact the Company’s performance.

8000 Sunset Strip Shopping Center Los Angeles, CA

1


Platform People Processes Technology Institutional Knowledge Equals

COMPETITIVE ADVANTAGE.

2

River Oaks Shopping Center Houston, TX


An Experienced Management Team With a Long-Term Perspective About Weingarten Realty • Founded in 1948 • IPO in 1985

Andrew M. Alexander

Johnny Hendrix

Stephen C. Richter

President and Chief Executive Officer

Executive Vice President/ Chief Operating Officer

Executive Vice President/ Chief Financial Officer

• Quality portfolio that is geographically diversified • Shopping centers located in high barrier-to-entry trade areas and high growth markets

Average Tenure of Senior Management is Over 25 Years

• Experienced management team • Supermarket and necessity-based retail anchored • Consistently adhered to the same core principles throughout its 60+ year history • Completed disposition of Industrial Portfolio in 2012 3

Average Tenure of Finance > 20 yr Average Tenure of Operations > 15 yr Average Tenure of Development > 13 yr


Decentralized Operating Platform Built On Local Expertise Note: GLA in thousands of square feet, with year of entry into state

WEST

MOUNTAIN

18% 4,300

% of ABR GLA

MID-ATLANTIC % of ABR 16% GLA 5,000

20% 5,900

% of ABR GLA

‘06 ‘06

Boots on the Ground ‘01

‘95

‘03

Sacramento

‘96

‘07 ‘04

Las Vegas

‘93

• Real time contact with tenants

‘96

Denver

Los Angeles

• In-depth local knowledge

‘12

‘87

‘85

‘89

‘85

• Quick and nimble decisions

Raleigh

‘01

‘06

‘01

• Decisions made in the parking lot; not in the boardroom

Atlanta Phoenix

Dallas

‘85 Houston

Regional Office

‘03 ‘99

Orlando Fort Lauderdale

CENTRAL

% of ABR GLA 4

31% 10,400

SOUTHEAST % of ABR 15% GLA 4,600


Leader in Small Shop Leasing

Medical

Health 26 Leases

49 Leases

Full Service Restaurant

9%

50 Leases

10%

Apparel

10%

51 Leases

carter’s

13%

Quick Serve 67 Leases

L X

IC

I

L

M

E

IPOTL E

C

®

H

AN GR

Note: Number of leases for the 12 months ended 9/30/13 5

Service

5%

165 Leases

32%

21% Other

109 Leases

• Global Meetings • Business Consulting • Long Standing Tenant Relationships • Short Form Lease


Small Shop Occupancy Has Outpaced Peers 91.0%

REG - 88.8%

89.0%

WRI - 88.7% DDR - 87.5%

87.0% 85.0%

KIM - 84.7%

83.0%

EQY - 81.5%

81.0% 79.0% 77.0% 75.0%

6

Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13

Source: Company Disclosure Note: Comparable data not available for FRT or RPAI.


Unrivaled Tenant Diversity Top 10 Tenants Comparison

WRI Top 10 Tenants % of Total Revenue

2.4%

% of Total Revenue*

25% 24.2%

22.4%

2.3% 2.0%

20%

21.2% 20.5%

19.1%

1.5% 1.5% 1.3% 1.2% 1.1% 1.1%

18.3%

15.4%

15%

10% WEINGARTEN REALTY

owns 30 properties anchored by Target where our retailers benefit from the great consumer draw of this upscale discounter.

5%

1.0%

TOTAL 15.4%

RPAI

EQY

REG DDR

* Company reports as of September 30

7

KIM

FRT WRI


Strong Grocer Lineup Grocers Avg. $518 PSF

75% of Our NOI is in Shopping Centers with a Grocer Component

National $496 Sales/SF 41% of Total NOI

Weingarten Store #9 Houston, TX

Regional $588 Sales/SF 21% of Total NOI

Specialty $470 Sales/SF 8% of Total NOI

Other $327 Sales/SF 5% of Total NOI 8

Strong Grocery Ties Your Neighborhood Food Market

Having started as a grocery store in 1901, Weingarten Realty has always emphasized the stability of grocery anchored centers to our continued success.


Internet Resistance

% of WRI Rent

77% 13% 10%

Internet Resistant: - Supermarkets - Quick Service and Full Service Restaurants - Personal Care Services - Medical - Pet Stores and Services - Discount Apparel

Potential Risk:

- Some Women’s Apparel - Beauty Supplies - Sporting Goods

Internet Vulnerable: - Office - Electronics - Books 9


A Leader In Environmental Sustainability We are committed as a strong community citizen to implement well-managed, environmentally-friendly policies and practices that further enhance property performance and value for the benefit of our tenants, our investors, and our world. Energy Efficiency • Energy management systems Water Conservation • Smart irrigation controllers • Remove and replace grass with Xeriscape • Drought-tolerant and native plant material • Mulching and ground covers to slow evaporation from soils Recycling • National recycling program • Recycling of non-traditional materials from capital projects • Recycle clothing bins and books Construction/ Building • Utilize white “cool proof” roofing systems • In-place reclamation / recycling of asphalt 10


Portfolio • Quality Retail Properties • Necessity-Based Goods and Services • High Income, High Job Growth Markets • High Barrier-to-Entry Trade Areas • Constant Improvement through Capital Recycling

11


Focused Growth Strategy % of ABR with entry year into state WA‘06 1%

OR‘06

<1%

MD

<1%‘12 Sacramento

NV‘95 7%

CA ‘01

16%

UT

<1%

CO‘96

NC

6%‘01

2%

OK NM

1%

TX‘85

Regional Office

Dallas

Atlanta

GA‘03

2%

Orlando

FL‘99 15%

17%

Total Growth States

<1%

5%

LA

Houston

Houston 17% California 16% Florida 15% Texas - non Houston 11% Nevada 7% Arizona 7% North Carolina 6%

Raleigh

SC

AR

<1%

11%

12

2%

TN

1%

Phoenix

<1%‘07

KY

<1%

AZ‘93

7%

VA/D.C.

MO

3%

Las Vegas

Los Angeles

Denver

Georgia 5% Colorado 3% Maryland <1% Washington <1% Oregon <1% Virginia <1%

90%

Fort Lauderdale

Industrial Portfolio Weingarten exited the industrial business in 2012. It is now a pure play retail REIT.


Clear Transformational Results Village Plaza at Bunker Hill | Houston, TX

Acquisitions - High barrier-to-entry trade areas within strong growth markets - Primarily supermarket anchored - Larger properties to gain efficiencies

Decision Making Model • Growth Potential • Demographics • Tenant Characteristics • Local Expertise • Property Layout

Dispositions

13

Non-core markets and property types Smaller centers Limited growth prospects Independent supermarkets -

Boulevard Market Place | Midwest City, OK


Capital Recycling Transforms the Portfolio

1/1/08

Acquisitions

Dispositions

9/30/2013

327

28

84

271

GLA SF

37.8 M

4.3 M

12.0 M

30.1 M

Average Base Rent PSF

$12.57

$18.37

$10.97

$15.52

Average HH Income*

$71,000

$95,000

$66,000

$81,000

Households*

39,000

53,000

34,000

43,000

Population*

102,000

123,000

88,000

107,000

1,385

1,900

1,200

1,500

# of Properties

Avg HH Density* * Weighted by ABR

Over the last six years, we have acquired $0.7 billion of assets and sold $2.1 billion of assets

Note: at prorata share 14

â&#x20AC;&#x153;We continue to improve the quality of the portfolio through recycling of capital by selling non-core properties and acquiring or developing assets in high barriers-toentry trade areas within strong growth markets.â&#x20AC;? Johnny Hendrix Executive Vice President / Chief Operating Officer


Recycling and Internal Growth Drives Continual Improvement in Quality Increase 1/1/08 Through 9/30/13 Average Base Rent

Average Household Income*

West

20%

9%

Mountain

20%

7%

Central

28%

20%

Mid-Atlantic

25%

14%

Southeast

10%

9%

14% 24%

12% 14%

Total * Weighted by ABR 15


Leading Job Growth By owned GLA 6% 5%

4.40%

4% 3%

2.79%

3.22%

3.46%

4.78%

5.44% Strong Markets • A disproportionate share of new job growth

3.72%

• Immigration • Better business environment / low tax states • Migration within the United States (Baby Boomers)

2% 1%

RPAI

KIM

FRT

REG

EQY

DDR

WRI

Represents job growth in WRI’s top 10 markets as compared to job growth in each of our peers top 10 markets

16

Note: Results reflect January 2010 - June 30, 2012


Median Household Income Exceeds Our Peers $80,000

Unadjusted for Cost of Living

$75,000 $70,000

$74,027 $69,924

Peer Average: $62,681

$65,000 $60,000 $55,000

$53,339

$55,659

$56,743

$57,053

DDR

EQY

KIM

$50,000 $45,000 $40,000

WRI

$60,000

$52,500 $50,000 $47,500

Peer Average: $50,944

$47,844

$48,132

KIM

EQY

$51,743

$52,628

FRT

$57,623

Adjusted for Cost of Living*

$57,500 $55,000

REG

$54,371

$45,000 $42,500 $40,000

17

* Weighted by NOI Source: SNL Financial, STI Popstats

FRT

REG

DDR

WRI

“New York, like San Francisco, is home to many of the richest Americans and bestpaying jobs. The average paycheck clocks in at $69,029, fourth-highest in the country, but high costs, particularly for housing, eat up much of the local’s pay: adjusted for cost of living, the average salary is worth $44,605.” Forbes.com The Cities Where a Paycheck Stretches the Furthest, 7/9/12


Growth Strategy

GOAL - Selective acquisitions and developments with growth potential • Quality, supermarket anchored and necessity-based shopping centers • High barrier-to-entry trade areas within strong growth markets • Larger centers which promote operational efficiency

Village Plaza at Bunker Hill Houston, TX 18


Recent Acquisitions Mueller Regional Retail Center Austin, TX

INTERSTATE

35

EAST 51ST STREET

OWNED BY OTHERS

BARBARA JORDAN BOULEVARD

PHI

LOM

ENA

STR

EET

NORTH

OWNED BY OTHERS OWNED BY OTHERS

• The Center is the regional retail component of the larger 700 acre, Mixed-Use Mueller Airport redevelopment project • With its location convenient to UT & downtown Austin, it is quickly becoming a major destination within the MSA with complementary components including the Dell Children’s Hospital, UT Research Campus, Austin Film Studios, 5,700 new homes and two planned hotels all sharing cross access, parking, and entrance points.

LANCASTER DRIVE

Population: 1 Mi: 15,595 3 Mi: 153,893 5 Mi: 324,449

Average Household Income: 1 Mi: $63,998 3 Mi: $60,249 5 Mi: $69,828

Property Size: 351,099 SF 19


Recent Acquisitions

Sea Ranch Centre Sea Ranch Lakes, FL

• Located near Fort Lauderdale, FL on a barrier island • Anchored by high volume Publix grocery • High barrier to entry location with the only Publix east of the inter-coastal waterway • Property serves the middle to upper income areas of Sea Ranch Lakes, Lauderdale by the Sea and Pompano Beach

Percentage College Graduates: 1 Mi: 51.5% 3 Mi: 49.5% 5 Mi: 44.5%

Average Household Income: 1 Mi: $98,000 3 Mi: $90,000 5 Mi: $81,000

Property Size: 100,000 SF 20


Recent Acquisitions Independence Plaza Laredo, TX

• High volume HEB anchored shopping center complemented by TJ Maxx and Ross Dress for Less • Located in the largest population growth area of all metro areas in Texas influenced by the influx of Mexican nationals and jobs created by Eagle Ford

BOB B

ULLO

NORTH

FUEL

OA D NR RS O HE MC P

Offering Memorandum

OP 20

)

Property Size: 366,028 SF

MONARCH DRIVE

21

CK (LO

Population: 1 Mi: 10,801 3 Mi: 45,689 5 Mi: 84,407

Average Household Income: 1 Mi: $78,922 3 Mi: $80,613 5 Mi: $73,096


Recent Acquisitions Queen Anne Marketplace Seattle, WA

ROY STREET

NORTH

Yummy Teriyaki

NORTH

1ST. AVENUE N.

Population: 1 Mi: 35,045 3 Mi: 201,396 5 Mi: 399,578

WARREN AVENUE N.

Property Size: 81,119 SF YETIYOGURT FROZEN CREATIONS

ROY STREET

• Dynamic, infill location near downtown Seattle

metropolitanmarket

MERCER STREET

22

LEVEL TWO

WARREN AVENUE N.

• Anchored by Metropolitan Market, upscale neighborhood market consistently ranked as the favorite grocer in Seattle by consumers

MERCER STREET 1ST. AVENUE N.

• Over 200,000 people within a 3 mile radius with over 68% holding college degrees

GROUND LEVEL

Average Household Income: 1 Mi: $90,187 3 Mi: $86,982 5 Mi: $91,345


Recent Acquisitions 8000 Sunset Strip Shopping Center Los Angeles, CA

NORTH

• Located along the famed Sunset Strip in West Hollywood • Extremely dense infill location with retail and office components • Surrounded by exceptionally affluent residential communities, including Beverly Hills and Hollywood Hills • Excellent visibility, with over 90,000 vehicles passing daily LEVEL TWO

NORTH

Population: 1 Mi: 42,136 3 Mi: 242,053 5 Mi: 777,832 Average Household Income: 3 Mi: $104,000 LEVEL THREE 23

Property Size: 173,000 SF

• Anchored by popular Trader Joes, CB2 (Crate & Barrel), Sundance Cinema, Crunch Fitness • 900 space income producing parking garage


New Development Hilltop Village Center | Alexandria, VA • Anchored by Wegman’s, the premier grocer in the Northeast • Dynamic mixed-use project with 250,000 sf retail and 100,000 sf office space upon completion • Located north of Ft. Belvoir, the largest employer of Fairfax Co. and an important Military Intelligence facility Population: 1 Mi: 7,458 3 Mi: 80,658 5 Mi: 253,717 CLE

TRA

FFI

CL

MAL IN

IGH

T

E BO

ULE

Average Household Income: 3 Mi: $104,192

Property Size: 272,000 SF

VAR D

BEULAH STRE OLD

CL

TREE

ON S

IGH

GAILS

T

FUTURE OFFICE BUILDING +/-10,000sf

FUTURE PARKING GARAGE

T

OOP SKA L

FFI

ET STRE

HENE

TRA

AH

BEUL

• 2 properties with $97 million investment upon completion

HILLTOP VILLAGE CENTER DRIVE

HEN E

SKA

LOO P

ET

Development Pipeline

• 2013 completions will contribute $2 - $3 million annually in NOI

OOP SKA L

HENE

TRA

FFI

TRA

FFI

24

CL

IGH

T

Second Floor

TELEGRAPH ROAD

CL

IGH

T


Performance Great People Great Properties Great Platform Equals

Great Performance.

Oak Forest Shopping Center Houston, TX

25


Improving Operating Results

YE

YE

2007 2011

YE 2012 Q1 13 Q2 13 Q3 13

9/13 YTD

Occupancy

Spaces > 10K SF

96.8%

97.1%

97.1% 97.7%

97.9%

97.9%

Spaces < 10K SF

86.7%

88.2%

88.2% 88.6%

88.7%

88.7%

Total Occupancy

95.1% 93.0%

93.7%

93.7% 94.3%

94.4%

94.4%

Number of Fallouts

491

476

380

116

102

95

313

Rental Growth

11.3% -0.4%

4.5%

3.9%

8.0%

6.5%

6.0%

New

13.3% -6.7%

2.2%

3.9%

19.3%

9.4%

12.6%

Renewal

10.5%

5.2%

3.9%

3.2%

6.0%

4.3%

1.9%

In over 60 years, occupancy has never dipped below 90%

The Village Arcade

Same Property NOI Growth

26

Houston, TX

2.3%

0.4%

4.2%

3.9%

5.0%

4.7%

4.5%


Strong Balance Sheet Positions for Growth 7.50x

Net Debt to EBITDA 7.16x

6.10x

6.00x

2007

Q3 2013

2.50x

2.36x 2.25x

27

40%

37.8%

35%

Fixed Charge Coverage

1.75x

49.3%

45%

6.50x

2.00x

55% 50%

7.00x

5.50x

Debt to Market Capitalization

2007

Q3 2013

Investment Grade Ratings S&P = BBB (Stable Outlook) Moody’s = Baa2 (Stable Outlook)

1.84x 2007

30%

Q3 2013

“We intend to keep leverage below 40% which positions us to take advantage of future investments.” Stephen C. Richter

Executive Vice President / Chief Financial Officer


Manageable Debt Maturities As of 9/30/13 Millions of Dollars (at prorata)

$450

$421

$400 $350 $300

$278

$315

$200

$90

$164

$150

$50

Since October of 2012, completed $600 million of 10 yr notes, $300 million at a rate of 3.42% and $300 million at a rate of 3.556%

$241 $75

$250

$100

$306 $300

$157

$25

$60 $6

$151 $106

$300

• Called for redemption of $200 million of 6.5% Series F Preferred Shares

$100

$203

$66

$300

• Paid down $500 million revolving credit facility

$139

$59

$25 $10 $15

$57

$59

$49 $10 $10

$6

$32 $17

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Thereafter

Mortgage Debt

Unsecured Debt / Bonds

Average Interest Rate of Total Debt 5.21% 28

• Redeemed $72.5 million of 6.95% preferred shares and $75 million of 6.75% preferred shares


Laddered Debt Maturities - Proforma As of 9/30/13 Millions of Dollars (at prorata)

Proforma with effect of $250 million bond transaction in October

$500 $450 $400 $350 $300

$278 $241

$250 $200 $150

$171

$253

$75

$90

$164

$157

$25

$65

$106

2014

$151

2015

$139

2016

$300

2017

$59

$25

$253

$44

$10 $15

$57

$59

$10 $10

$6

$3

2018

2019

2020

2021

2022

2023

Mortgage Debt

29

$300

$100

$203

$100 $50

$306 $303

Med-Term Notes/Bonds

$32 $12

2024 Thereafter


Stock Price Performance - As of October 31, 2013 Closing Stock Price As of 10/31/13

YTD

$31.73

WRI

$16.95

DDR

$24.11

EQY

$103.60

FRT

$21.48

KIM

$51.66

REG

$14.31

RPAI

18.5% 8.2% 14.8% -0.4% 11.2% 9.6% 19.6%

Peer Avg

10.5%

FNSHO

8.8% 4%

30

8%

12%

16%

20%


Valuation Shows - It’s a Good Time to Buy WRI Stock Multiple 25.0

23.4X 20.0X 19.8X

20.0

16.4X 16.3X 15.4X

15.0

14.1X

10.0 5.0

Often finding an undervalued REIT with “best in class” brand identity can be difficult; however, Weingarten Realty Investors (WRI) is considered a highquality REIT that has an exceptional track record of delivering on its promises for investors, tenants and customers. Forbes.com

Undervalued Pure Play Retail REIT Delivers, 11/2/12

31

FRT

REG

EQY

WRI

KIM

DDR

RPAI

Recurring FFO (Midpoint of 2013 guidance)

$4.61

$2.58

$1.23

$1.94

$1.33

$1.11

$1.01

Stock Price (as of 11/4/13)

$108.01

$51.68

$24.36

$31.91

$21.66

$17.06

$14.27

Note: Earnings sourced from company supplements, stock price from Yahoo finance


Guidance Recurring FFO Per Share

$1.93 - $1.95

Signed Occupancy

94% - 95%

Same Property NOI

+3.5% to 4%

Retail Rental Growth

+3% to +6%

Acquisitions (millions)

$175 - $200

Development Investment (millions) Dispositions (millions)

32

Revised 2013 Prelim 2014

$15 - $50 $250 - $350

$1.95 - $2.01


Summary - Weingarten Executing Our Strategy • Further improving operations and leasing our portfolio back to 95 plus percent occupancy - Through 9/30/13, occupancy is 94.4%, up 80 basis points from a year ago and same property NOI for the quarter was 4.7%

• Transforming the portfolio through recycling of capital by selling non-core properties and acquiring or developing assets in high barrier-to-entry trade areas within strong growth markets - Over the last six years, average base rents increased 24% and average household income increased 14% - Acquired $0.7 billion of assets and sold $2.1 billion of assets including the sale of our Industrial Portfolio

• Deleveraged our balance sheet to improve our financial position - Debt to market cap has decreased to 37.8% and net debt to EBITDA to 6.10x

Great People + Great Properties + Great Platform = Great Progress

MOVING FORWARD. 33


Notes


Notes


Notes


Investor Presentation

MOVING FORWARD.


2013 Investor Presentation