Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-Despite continuing turbulence in the economy and its impact on retail, Weingarten Realty’s executive team said the second quarter was solid. The REIT’s continual progress includes a working pipeline of $390 million of projects and year-to-date sales totaling $106 million of non-core assets.

During its Q2 earnings call, Weingarten executives anticipated the solid performance will continue throughout the year although they acknowledged the market remains uncertain. Robert Smith, senior vice president of new development, said 35 properties are in the pipeline, adding 13 should be stabilized by the end of 2009. In addition, the REIT completed two grocery-anchored centers: the 140,000-sf Raintree Ranch Center at Loop 101 and Ray Road in Phoenix and the 489,000-sf Sharyland Towne Crossing at Shary Road and US Hwy. 83 in Mission, TX.

“To offset any future impact of the economic slowdown, we’re expanding to work with local developers,” Smith told analysts and shareholders. “This is a good way to leverage our expertise and increase shareholder value.” Although he wasn’t specific, he said the company is continuing to see opportunities with local developers.

Weingarten took in $87 million during the quarter in the sale of five properties totaling 750,000 sf. Company president and CEO Andrew M. Alexander said there are a number of merchant-build and non-core disposition assets planned for the remainder of the year.”We’re optimistic we can come in around the lower end of the merchant build and one-off guidance,” Alexander said. “But we want to do the right thing long term.” He said the REIT will do a deal if the offer seems reasonable and if not, it will continue its hold. “We want to avoid any sort of distressed sale situation,” he added.

Although retailers continue to be hurting from decreased consumer spending, Weingarten’s executive team said occupancy is holding fairly steady. The portfolio’s overall occupancy, which includes industrial, is 93.6% in comparison to 93.7% at the end of the first quarter. Retail occupancy stood at 94.2% when Q2 ended, down 0.6% in the past quarter.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.