Images from The Palms at Town & Country, Miami, FL Investor Presentation Third Quarter 2017
Forward Looking Statements Statements included herein that state the Company’s or Management’s intentions, hopes, beliefs, expectations or predictions of 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 that may impact the Company’s performance. North Creek Plaza Forward Laredo, TX 2 Looking
Company Overview Richmond Square Houston, TX 3
Company Overview As of 9/30/17 Total Market Capitalization Transformed portfolio (based on September 30, 2017 closing stock price of $31.74) delivering sector leading Debt results Common $2.2 Billion Equity $6.3 35% Billion $4.1 Billion 75% Supermarket 65% Anchored averaging $632 PSF Total Return % Strong Balance Sheet with 15.00% 12.55% well laddered debt 10.24% maturities 10.00% 5.00% ~ 5% Dividend Yield $1.54 annually 0.00% (as of 9/30/17) Since IPO WRI NAREIT Equity REIT Index Company Overview 4
Why Weingarten? This is not the Weingarten of the past Over the 7 years (2010 – 2016), we have TRANSFORMED the portfolio through: Purchasing $1.3 Billion in target markets • Disposing of $1.9 Billion of non-core properties • Resulting In: Properties that produce sustained growth in NOI • • Recession and internet resistant cash flow Quality properties that demand higher NAV per dollar of NOI • Peer Leading Operating Results over the last 3 years Same Property NOI averaged 3.2% • • Occupancy increased to 95% • Average Base Rent increased 10% Strong Balance Sheet Metrics positioned for growth opportunities • Net Debt to EBITDA of 5.6x vs 7.8x in 2011 Debt to Market Cap of 34.9% vs 53.1% in 2011 • • Well laddered maturity schedule Company Overview 5
Proven Management Team Drew Alexander Stanford Alexander President and CEO - 37 years in industry Chairman of the Board - 60 years in industry Steve Richter Johnny Hendrix Exec VP / CFO - 35 years in industry Exec VP / COO - 35 years in industry West / Mountain Central Mid-Atlantic Southeast Miles Sanchez Gerald Crump Lee Brody Steven Weingarten 21 years in industry 16 years in industry 25 years in industry 35 years in industry Company Overview 6
Focused Target Markets >90% of ABR is in Target Markets Regional Office Target Market Target Market Selection Criteria Markets with Strong Demographic Profiles Locations with Strong Barriers • Solid job growth • High density / low GLA per capita • Geographic / Physical • Pro business environment/low • Benefiting from migration within • Regulatory / Zoning tax states the US • Density / Economic • Highly educated population • Immigration to the US and strong international trade Company Overview 7
High Quality Portfolio Falls Pointe Shopping Center Raleigh, NC 8
Top 12 Centers Comprise 20% of Total Portfolio 2. River Oaks SC – Houston, TX 1. The Palms at Town & Country – Miami, FL 3. Market at Town Center – Houston, TX ABR: $21.72 PSF AHHI: $139,542 ABR: $22.69 PSF 3 Mile Population: 171,702 ABR: $38.93 PSF AHHI : $144,908 Major Tenants: Nordstrom Rack, Saks Off 5th, Major Tenants: Publix, Kohl’s, Nordstrom Rack, Major Tenants: Kroger, Barnes & Noble, Gap, HomeGoods, Marshalls, Ross Dress For Less Dick’s, Marshalls, CVS, Total Wines Americas, Sur La Table, Talbots 6. 8000 Sunset Strip – Los Angeles, CA 5. Colonial Plaza – Orlando, FL 4. Westminster Center – Los Angeles, CA ABR: $15.73 PSF % College Grads: 51% ABR: $19.49 PSF 3 Mile Population: 210,655 ABR: $42.70 PSF AHHI: $114,832 Major Tenants: Ross Dress For Less, Marshalls, Major Tenants: Home Depot, Albertsons, Ross Major Tenants: Trader Joe’s, CVS, Crunch Old Navy, Floor & Décor, Hobby Lobby, Staples, Dress For Less, Petco, Rite Aid Fitness, CB2, Sundance Cinemas Stein Mart, Barnes & Noble, Petco High Quality Portfolio 9
Top 12 Centers Comprise 20% of Total Portfolio 7. Village Plaza at Bunker Hill – Houston, TX 8. Largo Mall – Largo, FL 9. Best In The West – Las Vegas, NV ABR: $16.72 PSF 3 Mile Population: 195,050 ABR: $17.61 PSF 3 Mile Population: 112,842 ABR: $24.61 PSF AHHI: $127,045 Major Tenants: TJ Maxx, Best Buy, Bed Bath & Major Tenants: HEB, Academy, Toys R Us, Major Tenants: Target, PetSmart, Bealls, Marshalls, Beyond, PetSmart, DSW, Stein Mart, Old Navy, Sam Moon, PetSmart, Nordstrom Rack Bed Bath & Beyond, Michaels, Regal Theater Babies R Us 10. Chino Hills – Los Angeles, CA 11. Centre at Post Oak – Houston, TX 12. Hilltop Village Center – Alexandria, VA ABR: $22.18 PSF AHHI: $102,750 ABR: $35.38 PSF AHHI: $134,918 ABR: $33.88 PSF % College Grads: 58% Major Tenants: Smart & Final, Rite Aid, Dollar Major Tenants: Marshalls, Nordstrom Rack, Old Major Tenants: Wegmans, L.A. Fitness Tree, 24 Hour Fitness Navy, Arhaus, Grand Lux Café, Morton’s High Quality Portfolio 10
Proven Operating Results The Company’s transformed shopping center portfolio has produced sector leading results Leased Occupancy Same Property NOI* 5.0% 4.2% 4.2% 96.0% 95.4% 95.1% 3.4% 3.3% 94.8% 94.8% 2.7% 2.5% 94.3% 2.5% 93.7% 94.0% 0.4% 0.2% 93.0% 93.0% 93.0% 0.0% 91.8% -0.6% 92.0% -2.5% -3.8% -5.0% 90.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 17 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 17 ABR PSF Rent Growth $20.00 20.0% 16.6% $18.58 $17.93 12.5% 13.1% 15.0% $18.00 11.0% $16.92 10.1% $16.24 10.0% $15.14 $15.66 6.3% $16.00 4.2% $14.51 5.0% 2.0% $13.16 $13.31 $13.60 $14.00 0.0% -0.4% $12.00 -2.5% -5.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 17 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 17 Note: Q3 17 peer information includes DDR, KIM, BRX, RPAI, and REG High Quality Peer Average WRI *SPNOI excludes redevelopment Portfolio 11
Small Shop Leasing Apparel 19 Leases Service 48 Leases 5% 13% Other Beauty 25% 94 Leases 51 Leases 14% 6% 19% Full Service Restaurant 18% Health 24 Leases 72 Leases Quick Serve 67 Leases Note: Number of leases for the 12 months ended 9/30/2017. High Quality Portfolio 12
Leasing High Quality National Brands Three or more signed leases in the period 9 signed leases 4 signed leases 3 signed leases 5 signed leases 3 signed leases 3 signed leases 3 signed leases 3 signed leases 3 signed leases 3 signed leases 3 signed leases 3 signed leases High Quality Note: Based on signed leases for the 18 months ended 9/30/17. Portfolio 13
Leasing High Quality Anchor Tenants Signed leases last 18 months High Quality Note: Based on signed leases for the 18 months ended 9/30/17. Portfolio 14
Strong Tenant Base WRI Top Ten Tenants (% of Total Base Minimum Rent) 80% 2.6% 70% 2.5% 60% 75% 2.0% Transformation 50% means stronger 66% 1.6% credit quality 1.6% 2008 40% 2017 1.6% 30% 34% 1.3% 20% 1.2% 25% 1.2% 10% 1.1% 0% National/Regional Local 16.7% TOTAL High Quality Portfolio 15
2017 Manageable Store Closures Impact to WRI Expected manageable impact to cost around $0.01 in 2017 FFO and <1.5% of ABR LIMITED EXPOSURE NO EXPOSURE Closure Tenants WRI Store WRI Store 9/30 since 3/31 Count Count % ABR 6/30 9/30 25 23 0.56% 21 14 0.22% 5 5 0.44% 6 5 0.09% 3 3 0.00% 3 1 0.00% 3 0 0.00% Total 61 51 1.31% 16
Highly Productive Grocers 75% of Our ABR is in Shopping Grocers Sales Average $632 PSF Centers with a Grocer Component Grocer Types Portfolio Segmentation % of Sales ABR PSF 75% National 43% $606 Grocery Grocery with Anchored Another 34% Regional 23% $685 Anchor Strong 41% Grocery Ties: $627 PSF $638 PSF Relating to a grocery Specialty 8% $670 store started in 1901, Weingarten Realty Power and has always Independent 1% $302 Specialty emphasized the 25% stability of grocery Total 75% $632 anchored centers to our continued success. High Quality Portfolio 17
Internet Resistant As of 9/30/17 Internet Resistant 80% Potential Risk 15% -Quick Service and -Some Apparel 5% 19% Full Service Restaurants -Sporting Goods 2% -Services 15% 80% -Footwear 2% -Supermarkets 12% -Beauty Supplies 2% -General Merchandise and 8% Other Misc. Retail -Drugstores 1% -Recreation/Entertainment 7% -Liquor/Tobacco 1% 15% -Optical 1% -Discount Apparel 7% -Party Supplies 1% -Home Furnishings 5% 5% High Risk 5% -Medical 4% -Pet Stores and Services 3% -Office 2% % of WRI ABR -Electronics 2% -Books 1% High Quality Portfolio 18
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