The cash is being used to pay down outstanding debts and possibly to buy back Weingarten's conversion and regular bonds. Meanwhile, Weingarten's executive vice president of asset management Johnny L. Hendrix said he saw hopeful signs that the retail environment could be stabilizing. "Sales to the retailers who occupy our kinds of shopping centers were up for the quarter, versus first quarter of 2008," he said at the REIT's Q1 2009 earnings conference call. "I'm encouraged by the retailers' performances."
Hendrix added that some retailers, such as Hobby Lobby and TJ Maxx, were coming back to the market and are looking for space. Though he acknowledged concern that bankruptcies were still likely to occur, "they're not as prevalent so far as anticipated," he commented.
 Richter |
For tenants such as Blockbuster, things are different. "It's obvious they're struggling," Richter said. He acknowledged that Weingarten's leasing staff is trying to work with the entertainment company, but said there would be some Blockbuster leases that likely wouldn't be renewed. Still, he added, the space wouldn't be difficult to backfill.
To fill the current vacancies, the leasing staff is talking to traditional retailers. They're also working with somewhat non-traditional potential. tenants including a charter school and medical school. The cold calls, e-mails, direct mail and broker relationships are paying off as "we're continuing to lease space, even in these challenging times," Hendrix commented.
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