X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-Balance sheet strengthening and lease improvements marked Weingarten Realty’s Q2. As a result, executives were cautiously optimistic about the direction of both its balance sheet and the economy.

“We remain cautiously optimistic that our operations levels have reached the point where the worst is behind us,” remarked Weingarten president and CEO Drew Alexander. However, Alexander acknowledged that the remainder of 2009 and 2010 will “remain challenging.”

Net income, on a diluted, per-share basis did drop from $.35 per share from $.76 per share last year; however, this was due to a decrease in the gains of sale of properties from $41 million in 2008 to $11 million so far this year. The company’s common equity offering also impacted net income.

But the leasing was looking up; retail occupancy increased to 92.1% during Q2 2009 versus 91.7% at the end of Q1 2009. Fallouts in the industrial division, however, pushed total occupancy downward to 90.9% from 91.5% from the previous quarter.

More positive news, noted Steve Richter, executive vice president and CFO, was Weingarten’s ability to obtain secured loans from life companies, to help retire existing debt. Right before the quarter ended, the company closed a $71 million secured loan with a major life insurance company, and will also close an additional $48 million with another company before the end of Q3. The company is also working on two secured loans with banks, he added.

As a result, though the REIT still is interested in selling a chunk of its assets to strengthen liquidity–the goal is to realize $300 million in sales by year end–”we don’t have the same pressure to sell that we did,” Richter commented.

Alexander declined to predict when, specifically, things might begin to look up. We’ve been in a recession since 2007, he said, then things got worse. Though the majority of pundits are pointing to 2012-2013 for any kind of uptick, “I’d hope things would end up betting better a lot sooner,” Alexander said. “We’re making fantastic progress on liquidity needs, and am hopeful we’re getting closer to better times, for everyone.”

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

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 © 2021 ALM Media Properties, LLC. All Rights Reserved.