WRI Weingarten Realty Investors

Michelle Wiggs Vice President-Investor Relations
Drew Alexander Chairman, President & Chief Executive Officer
Johnny Hendrix Executive Vice President & Chief Operating Officer
Steve Richter Executive Vice President & Chief Financial Officer
Katy McConnell Citi
Craig Schmidt Bank of America
Greg McGinniss Scotiabank
Ki Bin Kim SunTrust Robinson Humphrey
Chris Lucas Capital One Securities
Hong Zhang JPMorgan
Floris van Dijkum Compass Point
Linda Tsai Jefferies
Call transcript
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Good morning, and welcome to the Weingarten Realty Inc.

Third Quarter 2019 Earnings Call. My name is Brandon, and I’ll be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. this being note, Please Instructions] conference recorded. is [Operator

it Michelle Wiggs. I will you to turn now And Michelle, over may begin.

Michelle Wiggs

welcome Good call. and to quarter third morning, XXXX our conference

Joe Alexander, Joining is Johnny Shafer. Hendrix; me Drew Steve today Richter;

subject a based call forward-looking Private on expectations this Securities management’s As course Reform Act. in of are such the are to certain about current changes projected materially during circumstances. from statements statements the variety reminder, These results of meaning Litigation a within the Actual made these contained in statements and information differ statements uncertainty the filings. could forward-looking of company’s and in is More to due SEC those factors. factors are

funds management make both tab non-GAAP our conference FFO, to website. to supplemental information Weingarten’s we this core is Relations and call, located during financial our NAREIT, the Reconciliation results. in Also, understand help these to may better operations, non-GAAP Investor investors of from measures under analysts which operating and or such reference as believe certain financial package measures available

Drew turn to call over I will now the Alexander.

Drew Alexander

you, and Thank of am pleased to you to Michelle, announce all quarter. great us. joining a for thanks I

resiliency assets and has show we've proven beneficial. and stronger of community results with our and portfolio grocers in made the Our Further, the centers assets weaker merchants adding and shopping goods basic improvements selling neighborhood services. quality by selling

about planned our and the nice bullish for Coupling this new a dispositions online sheet, to transformed revenue portfolio beginning come balance a we're XXXX, of significantly with of volume developments potential a future. pipeline best-in-class reduced extremely acquisitions, from

to able center competitive, Bouwinvest, partnership The very highly a part this in in talk we asset Subsequent million. in Houston, a share of acquisitions acquisition in bringing to were end, Whole market Hilshire $XX minute. While during in XXXX fine the will anchored more acquisitions to remains with quarter of QX. quarter company's about affluent Atlanta. date purchased Village in $XXX a million was Foods' purchase Johnny the to we

other acquisition prompted quality see XXXX. We our opportunities continue to increase us for which to guidance

dispositions, Apple As the third $XXX in was largest Jess marketplace Valley of in the to property the California. we sale of Ranch quarter, sold of which million

last sale center power discussed in $XX quarter, the tertiary our significant for this was of that a event As the further derisking million portfolio. market a company strengthens

and Given million our will guidance. current disposition at we finish upper our the likely year-to-date of end of dispositions pipeline, the year our $XXX

$XXX dispositions to see As normalized I don't said for last which portfolio we plan being we million. above more to return for XXXX, quarter, management

development Moving Whole in Centro this At on our Arlington, At Harris market week. earlier Whittaker Teeter mixed-use opened last to new D.C. activities. in the West Foods project Washington, our the month. Seattle opened

units forma. also our complete residential pro occupied are We here XX% XXX about rents residential above leasing running have and some units with

to Virginia Amazon At these from and move-ins we West begin to Both close a -- XXXX. HQX, to Harris also at of to in near anchor to construction. strong market Alex, are West proximity expect around vibrant new in D.C., supermarket Virginia about begin Teeter Alex barriers open projects and residential The plans supermarket good North benefit Northern the leasing year-end.

residential is Oaks at units of Construction and River Driscoll nicely. should we in currently ahead progressing plan The is have mid-XXXX. available

with quarter. great capital will work and those excellent we great We A provide focus. redevelopment continue in to returns the pipeline have other on that many the projects invested

the Steve, financials?

Steve Richter

Thanks, Drew.

maturities and has strong X.XX no in the EBITDA times was quarter remains debt Our debt XX.X%, our net market schedule balance sheet end capitalization amongst was XXXX. until maturity total to a that a sector. significant well-laddered supported At to by strongest

great reduced redevelopments shareholders pursue flexibility our liquidity disposition fund and even opportunities. capacity maintaining to forward. strong still growth the to us and allows position acquisition our pursue metrics our This to for provide future while significant stability leverage long-term current our new with and Our developments, activity credit programs going

was our quarter compared decrease the base under same-property and disposition A by redevelopments. These new partially $X.XX per income last the new to the reconciliation of share, minimum per in and income increases not net activity share in primarily which rents for driven press share, $X.XX to due were by core is FFO we leasing compared of cost $X.XX in year. release. XXXX, and leasing to increased our in costs the is per primarily expensed standard Core XXXX. to but prior NOI, $X.XX decreases incremental The per offset same from share quarter of indirect us the FFO included for developments when year,

guidance, to our to All the supplemental. guidance details to our $X.XX million range of Johnny? increasing share page we our range guidance $XXX $X.XX core to million. and to FFO a our we a of on are acquisition As are $XXX of included XX are guidance per increasing of

Johnny Hendrix

properties basis NOI with our associates quarter. last with X%, base almost quarter We're below Leasing growth grew results, with are from strong. Shop expected. redevelopment points XX.X%. and X.X%. the rose pleased Steve. occupancy during to solid XX Great, we remained the minimum well Bankruptcies rent at produced levels Same-property

New rent was growth XX%. lease

fallout has that reasonable, our returns acquired peer Our and Weingarten deliver of group, to continue have FFO. diversified in retailer. lineup redevelopment any quality grow limited exposure years. Overall, portfolio with and in couple our program, the the last about remained tenant most enhance our levels our same of tenant some properties to portfolio will we've risk-adjusted the one strong great for

I do have a couple of bankruptcy updates.

able all and closed They their representing only have had We minimum four, several Avenue quarter, now be stores. our all quickly base $XXX,XXX filed them over of annual rent. to quarters. the We their should after again liquidation. Just call rejected generating for these spaces rent next quickly and leases lease last get

They've Palms actually percentage & cost. Country one the years. occupancy paid high have rent It's has in at store. a store XX Florida. produces Town significant over We modest Forever at last several and volume The

affirmed. be will lease this expect We

service quarter. for come restaurants, to renewals XX and in production executed from leases XXX both million several the new quick good categories, a continues We minimum Leasing for discount of supermarkets; clothing; space total during rent. $XX.X a base the annual slightly service; was and last Demand over from Occupancy the ago with XX.X%. ended That's year than XX.X% below quarter has higher gyms. year. We quarter. and services; remained and medical of full the occupancy last little stable a

quarter feel, commenced to the in a improve of continue grow to achieved to quarters. the feet excited this can robust years. is square and between to at That metric XXX XXX,XXX represents basis we highest The space. we've in We're grew shop least XX.X%. This occupancy at We leased XX future level end. spread points

fuel commence base to our next $X minimum about expect over million six This space, of the We representing year. that is NOI half great in months. rent same-property for annual next

year. very to Same-property range at the X.X% guidance for with of our remains NOI redevelopment X.X%, for good with X.X% quarter comfortable the we're and

Our redevelopment program to risk-adjusted continues returns. generate strong

have under We properties construction. XX

You'll completed a two Winter Roswell and multi-tenant see at that, we properties, Park building our Corners. Sprouts-anchored Corners

added new at spend XX properties Flamingo a budgeted $XX our to on around building a -- of multi-tenant We Pines. and on XX%. million investment return investment We've also expect on the

A are redevelopments good feet, adding shopping square between outparcel center. these risk. really of XX,XXX much at we're not so Most building XX,XXX X,XXX Wellington square-foot example and is a buildings

a leased of We building most clear our understanding the start we'll before will have have of costs. and we construction

be adding and have to guarantee properties year, buy. million There's growing contract. close of we we to found are we've improving we Year-to-date, these portfolio quality $XXX some properties mentioned, these but invested great $XXX Drew by excited all pushed under and we transactions next FFO assets. might As these and get some million no into great our our

the located of a of Villages very center, at The the Kroger edge Shops After a we affluent This anchored Village. Memorial It's the neighborhood a in Hilshire by end supermarket. high-volume purchased here quarter, Houston. at is

years. XXX,XXX by demographics own able three-mile an and $XXX,XXX. are this for of the We've prior to to The staying regular income property owner, strong to the acquire going asset market. we several with with average household in were people And to contact wanted

come. We increase in the expect to upgrade and to years tenancy rents


Drew Alexander

at XXXX. four is growth increased We've at grocery-anchored XX-year good. acquired Thanks, shop high. Johnny. pleased projects centers great our NOI occupancy, and accomplishments Great continue move rent occupancy with new our and Same-property a X.X% We're small very with development forward. to successfully quite in

shareholders highly transformed a successful demographics highly and sheet. diversified the forward program our disposition with owning stronger merchant improved with much nears our look to can a the end, As portfolio, company benefits a balance a greatly lineup, sector-leading of

shareholders future and our platform interest to and This provide great Great and Weingarten. FFO properties for results. people, stability operating all a call in great for continued will great joining greater will allow you to thank the I equals financial us continue great and post today your metrics growth.

questions. Operator, be happy take we'd to now


go question-and-answer the Instructions] Christy begin Citi now Thanks, from Please Drew, and have McElroy. we'll [Operator And session. we ahead.

Katy McConnell

dispersion QX? Katy is same-store with you growth walk on acceleration through same-store implied McConnell implied talk redevs drivers in Christy. the about Good maybe expectations key without for for the what's us wider then, Could in This your redevelopments versus And steeper morning. of the year-to-date guidance? and driving ex in

Johnny Hendrix

A all some online tough in were of come online. tenants same-property without the closed pretty against kind Sure, and we of had the those Like debt some a lot Katy. redev new difference And said, redev has it. that out. the really coming driving it's are those in of number. bad we've actually We we comping

of does need the of think, to any debt we In immediate have year, $XXX,XXX of lot guidance but a bad pieces seem don't maintain in terms prudent the rest it. like about I it. moving it for the there's to number We and still that, the see for always in

for have that already count moving Michaels terminated terminated Raleigh space a where we're had NOI. properties. improving in tenants And that, same-property tenants but under a Aid Lakeside in towards we've out. our where construction early of Atlanta with at and as nice the of leased we couple always that, a Rite termination We've and we're part And We Ulta. re-merchandising we and some doesn't

And able I some NOI we recoveries the some think, end have difficult then, At number to is we same-property debt three annualized that's for an to pretty this be get what number. of on the hard predict numbers comp year. kind pretty and good day, of bad also a might

Katy McConnell

And Okay, more. maybe one great. then Thanks.

forward acquisitions provide transaction And avenue reinvestment net of portfolio? growth just in your how on any going outlook color for could you versus the about an activity If you're in thinking as XXXX?

Drew Alexander

morning. Drew. Good all at We It's opportunities. look

large progressing We've our mixed-use digest our we plate. adding We talked developments about are are on that three to until that the sheet along nicely. more not have balance the

As you XXXX or heard see residential on mixed-use are along spending significant in new my prepared don't projects. nicely. certainly us coming But I remarks money those in

an his densification see XXXX, team of -- have the small, and and a huge XXXX a Johnny have risk-adjusted there at pipeline and profitable to get XXXX. Wellington but you very worked not very of extended redevelopments do so lot I like when pipeline over as active diligently on in spending And those much period on We could time. simple, us we well. an money

When an pleased able to to It it every see some acquisitions, able be always comes happens to we deals. do good center to a that. about. some fortune We're we're transaction work, always and I on very had be we've look, shop excited we in we deal so source that to off-market frequently

So on acquisitions, opportunistic. but it's keep we'll working always

centers. lot. far And of in mentioned through remarks, a weak lot as then sold as I a We've we've my capital as allocation gone prepared

that expect looking acquisitions well. any to redevelopments plan would And I be looking but that. being match basically done. growth and better see think shareholders, developments dispositions both we the And $XXX it XXXX would very we those new opportunities we're at or if along don't good at would find as we million less came to we funds than much think benefited we

Katy McConnell

Okay, for great. color. Thanks the


Please And have Craig from Bank America of we Schmidt. go ahead.

Craig Schmidt

wonder, are in I and mean, pretty now I guys you both buying active Yes. selling.

demand give an depth cap could on us centers? open-air you update and rates If for

Johnny Hendrix

Good three varies. morning. tell consistent seems I It over really fairly remained the Yes. you to quarters would or that Craig. Hi, pricing last have so.

specific the country the be looking seems of settled property is points around X% kind If XX tenancy. centers at in X.XX% you parts be more. around a Debt on great supermarket-anchored probably that you'd basis seem have somewhere XX really a maybe probably range basis to coast, have a the of somewhere bit available. -- other X.X% little to wanted -- on certainly more to points Power to depending

we've so of dispositions acquisitions well. And what the in with done pleased are as in very, we the terms very

Craig Schmidt

just the pre-leasing maybe give then recent Thank you. update That helpful. was And the you us could if on Alexander Alexandria for multifamily projects? both most -- your of

Drew Alexander

Sure, Craig. It's Drew.

Centro at are mentioned nicely. As things progressing

trending pre-leased with. of Very, which ahead Rents remarks said about very XX% I are with we're my As very in pleased pleased our prepared pro forma. that.

strong -- people a corporate of terms in applying pretty of also deals looking relo a that nice we're We couple on. evaluating that in have of inquiries book

Harris opened the I As Teeter mentioned few weeks. in last

pleased how gate very very, just coming we're we're with Centro. So the out of at

The of Alex West basics timing the little just is behind construction that. it situation a

organizational the running. units trying So of of to website we should in year. started those the And more holidays that as our haven't a at and realtors, their end is buying also weeks. few part really over around bagels turning with precisely next tours about be se. hosting make up the sure we'll what But and We're lot leasing office that over the of coffee mentioned I timing know per

other. each So close two are projects very to

West of close provide have Amazon years. the Alex. tailwind that So as ahead employees many renew we're leases Centro we the good doesn't next which few ground are the today, close, very pro but on us wonderful makes a at about HQX, the will projects two over to And forma fact feel

as with project say in very mentioned next I here start and pleased some Houston. projects. on wise here And the beds the heads they having So, ahead those of Houston middle schedule should as at in the year Driscoll of construction

takes So, them we've a and so of a progress revenue very with talking It's online next coming projects that XXXX. been pleased and the that'll the about kind these, time year develop in on made. very to we've of, about excited be calls long lot

Craig Schmidt

the Great. update. Thank you for


McGinniss. Please ahead. From Scotiabank we Greg have go

Greg McGinniss

more heard identified fairly you this mentioned interesting from Or Johnny, would the Is of assets considering away owners intensive are maybe cap increasingly good that Hey we've shying some for business. have in have been the of classify smaller conversations private entering assets so rates those as market acquisitions? are stable? morning. capital you how deals, you type guys indicative

see are many should at? acquisitions? we you'll be deals how vague I kind need on currently to you expect Also what, understand here, looking And but to rates cap of, these

Johnny Hendrix

supermarkets Greg. morning assets you tell what lot good generally the are will and they're a that on I have fully room I priced. of some and would strong are have say Hey, focused grow we to rent, that

smaller those. and or folks We buying of haven't lot a selling mom seen pops either those or

So some some our we're us with the institutions. of in others competing pretty well like of peers

over so that seeing deals, of contract under way relatively resolved lend the seeing today, a where we're person lot have -- So a moving change that I capital. -- things a the we time. $XXX assets we've be them themselves is would pieces, not without significant been million the which kind actually local in we're anything over say, And really don't some a lot different to high of they have price of is but by some

And other what had? I'm sorry, the question was you

Greg McGinniss

acquisitions? expect you what cap just rates It’s and Yeah. from

Johnny Hendrix


think I buying we're price. competitive at a

X.XX%, investment So in rate. going return in three we're move to years or X.X%, going product to to that we're about going is so. this cap be on X.X% over X.X% going that We buying to be time think

Greg McGinniss

I'm by be few -- guidance looking preface for but a appreciated. same-store details And guidance thanks. this next would question not saying, Great, I'll XXXX

one, wants and take So the next Steve growth remind remind little then can a you are? same-store our from items now there. be what one-time we tenant make first can expectations color you on or into the could whoever we could of us, conclusions If your to that we have see there's -- Johnny year? so list, state And then any right steady-state to going us own watch NOI this try

Drew Alexander

then and start and in. chime I'll can Johnny maybe Steve Greg,

time, period is same-property a I a world think over NOI X.X% think number. in an I So good extended of growth where we are

to moves that comp always have always we around. and mentioned bad debt against Johnny As

ourselves redevelopment we'll that. We X% for pretty We that's pain redevelopments number take have the of guidance with the accretive the an short-term those we active at to and around think feel that some we order middle pipeline that position about talked in shareholders. Johnny very we look redev our where good do to year. same-property and be this And are

a if next hope we're and better than X.X% better do So year. is to little we normal, normal

super watch them. tenants tenants all that's as list, the far that go you all not and scary. those knowledge happen imminent and in As over the touch There's that nothing weak have There's through period But disclose guys out no top with some page off of is jumps that's of time, the the to with going we're to we some there. at-risk tenants. something we to

and is what we stores, know. don't quarter exactly that So which

We good That's of have centers. sold lot we've where a things.

keep XX they that rent one percentage Forever So it. pays

thing. So mix good a having a really tenant well-diversified is

Johnny, Steve anything else? So

Johnny Hendrix

what repeat square is have I signed and we that XXX,XXX said Yes. that I not had feet commenced. would earlier about

$X the of the of year to expect think and that NOI of million next it a over little we online XXXX that driver six We be then bit things I on about balance have. property to into going the bigger the throughout months come and that's

Steve Richter

The our is we add finished XXXX budgets that our not have business plan I for Greg only thing would yet.

position in and obviously And number we're so as there's Drew mentioned, And into a not ultimately. still that that. provide will moving that dial through pieces working guidance a Johnny lot to but of

Greg McGinniss

appreciate thank color all I Well, there. you. the


Ki Kim. have From go SunTrust, Please ahead. we Bin

Ki Bin Kim


guess that down that massive program. you're pretty I winding the message disposition So clear is

investors much of are the is Or that thinking not what expressing or want sell? think is behind fatigue it you really to that? the it you that fact kind curious Just underlying some of Is the more that dilution? with frustration there's

Drew Alexander

Bin, it's Drew. Ki

night, saw has pleased questions all that that. messaging had people So, get the in the yes, of our totally I first that through. I that come I'm reports about last have

logical understand try -- question. and outside up less. And of to those last totally in directly call, the questions understand our I be much different conferences, that's where do the XXXX earnings came are to could earnings up the do came call, think questions that we best totally questions we think address I that that will those questions

I look is As at if we position we the our team just value a don't say, all shareholder Have these have much little you that think map it some better. function if Johnny some that we compelling. harness things assets we would to give time to of more see of left have we can why, that really a some that things and

So don't sell have to them. be in rush to any

it's much of And about. job done have So fabulous worried just that we're left mostly repositioning. that and I think don't we've we surmised, as a you derisking

Ki Bin Kim

Okay. you not planning in is there's you're have pipeline most companies on new hurdle something there that maybe XXXX And but depending maybe a in rates mentioned the any do looking or XXXX, that projects development the you're -- But XXXX as a change threshold you situation. at? do the

stock I'm you is pipeline you trading low the at changed things all rates X.X% where versus will for about looking I development today hurdle has or threshold around contemplate? in a have questions projects kind implicitly at your the mean yield. of around some that yield

Drew Alexander

think I question. excellent that's an

try important to pretty briefly. a this do So subject. It's let me

pipeline in go folks that we'll we multibillion-dollar can -- at over things roadshow identified projects our that one one at. with So add the it's that is have look a and of NAREIT to and

lots to are of entitled. not do. These There's work

lots money won't say in be that I XXXX So feel where investing that's we forward. will going I be of lots but we spending comfortable and

over additional excellent towers there we that period going first before clear could the to four one and where first of long time. it's or Houston tower example a obviously, add five the the an Oaks River Center very one Our building we're next. But in is digest we're see

a looking looking the you're for in you're set a rates projects, when rates, hurdle you're at residential these residential the low largely looking exit as far like market different at cap Xs. D.C. in at returns, of As

develop resi a about apple high that's And So if can year. a other actually is, get another nice the Xs you to a mid do profit. you the something pretty good at to bite after thing

projects longer. So the take mixed-use do

risk/reward I think the there. is

what we'll a future not be and redevelopments. also period, we very but investing the digest exposure more be multiyear of more But we limiting them, we'll near of term our a some have. over robust in in we densification very think doing about pipeline additional have till do and judicious I

Ki Bin Kim

but Okay. year-to-date can you Thanks better if you or missed from -- I'm Drew. was Maybe XXXX in. the next to debt? it And one or Steve, normalize what I you've not did get more expect impact not bankruptcies squeeze did sure but if that I year? bad or said I'm sure impact it,

Steve Richter

morning. Good

-- the quarters we did back recoveries. The think had some I the bad debt we you had where look if over couple issue prior we've of have is not comping last we actually the really Quite years, frankly debt. realized but of expense bad recoveries. had off

kind So debt. the think in of third quarter we I normal amount of was a bad realized that what

fairly we state between about As for still plan of from Johnny comfortable mentioned a but in things now and are, the tenancy there's obviously of We is built-in some lot see that's where movement don't end current year. what our the QX. the the feel and

Ki Bin Kim

Thank Okay. guys. you


One go From Chris have Lucas. Securities, we Please ahead. Capital

Chris Lucas

Good morning everybody.

million Just of to just stores the to follow related $X detailed in kind on as well? on write-offs that was there other are or there of Avenue mostly things question intangible that lease up Steve,

Steve Richter

that it between -- $XXX,XXX Charming we then Good the restaurant. lease was morning like I two down the got would at Charlie's plus them There there Avenue. was tell leases, bigger for That of a and was was -- was back was two of on majority Chris. it million. vast not the Palms, one you, one $X

huge, those couple time to but ones not So there this was we have do time. big They're quarter. of from a

Chris Lucas

that? dressbarn, this exposure follow-up thinking for then outcome just guys you the of And to and on the sort what's what's a tact, just

Johnny Hendrix

Hey Chris. morning. Good Johnny. It's

We one Largo the last have remaining We three dressbarns. had close at during did quarter.

pursue or money X. we'll we'll us they owe paying over that through and work so and next year that the dressbarn with anything them to agreed not have We the X

Chris Lucas

of done normal XX% is then And WhyHotel or does units the all on sort include Centro, that any pre-leasing Okay. pre-leasing? at far so there -- Great. that is

Drew Alexander

before that's No units. WhyHotel the

Chris Lucas

kick And in? then does when deal their Okay.

Drew Alexander

The WhyHotel?

Chris Lucas


Drew Alexander

it's pretty soon. but think I not sure I'm XXX% Chris,

Chris Lucas

Alex to then to Centro question And for the in you're you, Okay. when of relates taking terms that you one in and it as for West approach that capitalizing have expense? more settled accounting stop just guys just you're on Steve, going

Steve Richter


think in line we've peers conclusion our think a I the we there's space. bit concluded research resi And from the there. market I multifamily trying as of as is, well not frankly a understand some quite bottom standard of quite to done the out some

But we're stop CO number a looking -- of at date, using thereafter days a plus interest to the the capitalization. as benchmark interest the short accrual

Chris Lucas

then X. I relates guess the Okay. that have there of owners the just to as heard funds it acquisition are next And you're and large acquisitions, sort is in can both more maturing year? institutional what your X some sourcing at you as you what I sort into some that guess already you under Is looking the of a contract we've us that what have year of for sort next sense or as -- are of to opportunities look give

Johnny Hendrix

the and are that decisions the in on always boots We've our boardroom. idea the the ground the lot, Chris. made not Sure parking highlighted

reflects really team acquisition Our that.

They're is dedicated a resources through leasing regional think I opportunities relationships acquisitions. in good property and have We and even with Hilshire tenants are with for with redevelopment, people owners like really development brokers example their with then working of. offices new sourcing that

at. great able to find some this understand to off approach We try as some really teamwork really are continue and be we're and to looking – seeing pretty we complicated situations properties that paying

Chris Lucas

announced the you date? been week in in is shopping really to to been and deals space, in for relates transactions. this space could within suggests I that then there last M&A, the industrial the guess to And more public-to-public M&A large you. center point specific there two there that hasn't the anything the where why data me have question center Thank Okay. space

Drew Alexander

Chris, take talked Drew. to that a I place. we've conferences public always is for one something you been would I go really CEO be think been their is of have XX every It going around long to time and wants don't and that It's those time. things that I for seems privately. I've years. there's there predicted it consolidation. And and somebody I've there know.

situation happen would for always do than agree will is but So, remains it with thing it the I what as to uncertain very different we fact and but industrial shareholders, right to that. look perplexing

Chris Lucas

I you. Thank this it. That's Great. Appreciate have all morning.


have Hong Zhang. JPMorgan ahead. go From we Please

Hong Zhang

Hi. Yeah.

a quick the question Just as about redevelopment development pipeline.

– Just square and feet and --- looking Alex any QX that to have XQ for rolled in reason office Was had to comparing be allocation that in sub why the combined? you seems QX particular West of XX,XXX an up retail. to like been at got there looks into

Drew Alexander

was just We morning. it felt is Drew. This Good simpler.

If think a office. we is a that spaces of a then seen school conceived retail We top the at floor. before were and I would boutique play shopping XXX% layout, had school floor you some how when got ground of it involved were to be never more look of see the above centers. good commonly sure, would out school sort a couple montessori Well, pretty use would and project that we the it was originally in we approached you by take a as

maybe with or the you'd felt more something likely office us see to stockbroker middle it like talking we more insurance a that. feet. businesses that is to leased square So be to service call going or about floor, But like XX,XXX office more was just office confusing left which you're

So folks. thought simplified it we

explanation hopefully, So it with going does forward. this

Hong Zhang

Thank it. you. Got


Please van Point, Dijkum. we have Floris Compass ahead. go From

Floris van Dijkum

or harvesting units yourself some of of existing capital think taking proving question already. apartments you your Thanks of not question, do little and I the bit you've projects going you on? investments know on until you're a thousand starting you think about cost moving several current your Drew mixed-use, and – about additional little it But owning Would further my you your pipeline. concept as Great. for along before Or about do guys. in talked you see talked forward? a consider A

Drew Alexander

fully lot really one Floris, is then not that sort that think at we've could those conferences and announcement investors and and stabilized that on with I specifically we We've analysts that the when answer and possibly talked point think they're you the do HQX question a understood. the because are you Virginia appreciating jobs about that today, I get exit totally done Amazon that it's can the projects before different would directly And online to years that's a be great table. of when I of want everything to that. all options come

I something So look we'd is alternatives. it think all that at

South at San a possibly lease our on about Florida developments things we're balance looking sheet with it in sense maybe ways looking at We're meeting of or Cambrian looking Jose, sell – units off. componentized off. venture joint some mixed-use it on the a are basically componentizing At just We at doing or project a it property. where where a project at Board Palms both in talked ground it makes we'd yesterday

would look that, see And say specific. we we lots much something lots it's very all conditions market I broader different financial and things. at in But So, is projects. of it

get going recognize other We it expertise forward. option and have means to a in great this some talent as But we'll do more we see that. growth

Floris van Dijkum

portfolio your question us I but the regarding, you on an update today? guess your give where you is is maybe in Great, if mark-to-market your then, and think second can --

Drew Alexander

In to terms of or, debt? opposed leases as,

Floris van Dijkum


you mark they could what would where you're your you to at So delta today? in terms portfolio rents, would what of looking to of market, kind if getting whole -- be relative

Drew Alexander

in into. it. trouble for leases those that one to have with we've a you're going But not Floris. of that it, comfortable really things accessing also gotten lot it's cheaper a the that's Because We're of older, number cases

office the very with comfortable We're exposure the guys. to

gotten but And folks other that of over leases some few expiring the years, on really we've number. next the the into never weak

Floris van Dijkum

for me. that's Okay, guys. it Thanks

Drew Alexander

you. Thank


ahead. Tsai. [Operator Jefferies, go Linda Please we from have And Instructions]

Linda Tsai

Hi. questions. has that's guess the performed overall the your was of portfolio. specialty about taking power for Thanks portfolio? segment wondering, just how I and XX% to relative my I

Drew Alexander

well. very performed It's

One information there's of the to portfolio. the things in that have stress really, that that good things a show know we road really we the try And this is are good -- morning and our deck to of one centers on centers. we try you that, that of in stress lot

tremendous Center, the location. infill UT main by Mueller So our north in Austin, just Medical campus of center Dell

right center Richmond of Our just south shopping Post Westheimer Simon's at and the Oak Galleria. across from Galleria center our

really, that don't themselves have a that The classifications lot a broad supermarket that's And of good. have to the we sometimes they where centers industry that are don't really uses. lend

So really pleased with them. we're

Linda Tsai

centers? exposure want goal of to a that have you power you Do longer-term

Drew Alexander

And have in power that's -- we to exposure very many, sense big shop word center little large boxes, of and Yeah. the don't center, with traditional the where many space. much very a

centers like that We very Oak love have Westheimer. store and a Hill power we good and HEB have some areas, Bunker some in centers populated Post with densely we then like unique fabulous "supermarket-anchored" a

boxes we've few what in power that very multiple, space. But traditional got -- with centers shop multiple of those

we supermarkets. are right with So Love mix very the of comfortable tenants.

would and And center. basic other have before, But a saw the lot non-supermarket-anchored that and buying mentioned of as folks, lot services sold a right goods love places we the consider certainly risk. of

So pretty comfortable XXXX. and dispositions we'll in have less

have to front on a either. sell So that don't lot

Linda Tsai

Thanks a lot.


Thank Drew, I'll it closing you. And back now for remarks. to turn

Drew Alexander

Brandon. you, thank Well,

the If questions. all there interest more the happy Weingarten in those. entertain are questions, appreciate We'll I afternoon. around and to this be I'm So

We'll also I weeks. NAREIT, go say, of ASTRO. a many got And couple at you of to in see

everybody have a So, day. great


Thank today's you you. Thank Ladies and this concludes joining. conference. gentlemen, for

You disconnect. may now