Skip to main content

Market Overview

Weingarten Realty Earnings Pose 3 Questions For UBS Analysts

Share:
Weingarten Realty Earnings Pose 3 Questions For UBS Analysts

Weingarten Realty Investors (NYSE: WRI) reported a beat and raise quarter that led UBS to maintain its Buy rating and $45 target price on the stock.

The REIT reported second-quarter core funds from operations (FFO) of $0.57 a share, topping consensus view of $0.56, and raised full-year FFO outlook to a range of $2.28–2.32 per share from $2.27–$2.31.

3 Questions Arise From Q2

UBS analyst Jeremy Metz weighed on the results in the form of three questions:

1. What Do Results Mean For The Stock?

"Overall, we think it was a good quarter and continue to view WRI as an attractive way to play the shopping center sector with a defensive cash flow stream driven by necessity oriented consumer spending."

Related Link: Jefferies Mostly Neutral On REIT Sector

2. What Were The Most Noteworthy Areas In The Report?

  • SSNOI including redevelopments was up +3.3 percent.
  • Redevelopments contributed 70bps.
  • Cash releasing spreads were strong at +18.2 percent.
  • New leases up 29.4 percent.
  • Renewals growing 14.4 percent.

However, leased occupancy of 94.9 percent dropped 60bps y/y, with a rejected TSA leased a noted drag. Box occupancy fell 100bps to 97.7 percent, while shop occupancy slipped 10bps to 90.2 percent.

3. What Is The Company's Outlook/Guidance; Did It Change?

Weingarten's revised core FFO guidance of $2.28–$2.32 compares to UBS estimate of $2.30 and consensus estimate of $2.29.

"Better than expected operations and acquisitions activity is being partially offset by capital markets activity and a $0.02 headwind from TSA (not prev in guidance)," Metz wrote in a note.

"Some shifts in redevelopment rent timing was another drag, taking down SSNOI 50bps to 3–4 percent, though core SSNOI was unchanged at 2.5–3.5 percent," Metz added.

At the time of writing, shares of Weingarten had risen 2.17 percent on the day to $43.60.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for WRI

DateFirmActionFromTo
Apr 2021BTIGDowngradesBuyNeutral
Apr 2021ScotiabankDowngradesSector OutperformSector Perform
Jan 2021ScotiabankUpgradesSector PerformSector Outperform

View More Analyst Ratings for WRI
View the Latest Analyst Ratings

 

Related Articles (WRI)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings Long Ideas News REIT Guidance Price Target Reiteration Best of Benzinga

Latest Ratings

StockFirmActionPT
GOTUCitigroupDowngrades12.0
ATERRoth CapitalMaintains25.0
FMTXSVB LeerinkMaintains54.0
TALCitigroupDowngrades
PLXSLoop CapitalMaintains105.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com