Weingarten Realty Increases Same Property NOI by 5.0% and Increases FFO Guidance

  Weingarten Realty Increases Same Property NOI by 5.0% and Increases FFO
  Guidance

Business Wire

HOUSTON -- July 31, 2013

Weingarten Realty (NYSE: WRI) announced today the results of its operations
for the quarter ended June 30, 2013. The supplemental financial package with
additional information can be found on the Company's website under the
Investor Relations tab.

Second Quarter Operating and Financial Highlights

  *Recurring Funds from Operations ("FFO") for the quarter increased to $0.49
    per diluted share from $0.47 per diluted share a year ago;
  *Same Property Net Operating Income increased 5.0% over the same quarter of
    the prior year;
  *Occupancy increased 0.5% over the prior quarter to 94.2% and 0.4% over the
    prior quarter to 88.6% for spaces less than 10,000 square feet (referred
    to as “small shop space”);
  *Acquisitions totaling $71 million and dispositions totaling $108 million
    were completed since the end of the first quarter; and,
  *6.50% Series F Cumulative Redeemable Preferred Shares totaling $200
    million were redeemed.

Financial Results and Preferred Redemption

The Company reported net income attributable to common shareholders of $45.4
million or $0.37 per diluted share (hereinafter “per share”) for the second
quarter of 2013, as compared to $22.6 million or $0.19 per share for the same
period in 2012. Included in these operating results for 2013 was a non-cash
write-off of preferred redemption costs of $0.13 per share related to the
redemption of a portion of the Company’s Series F preferred shares. Included
in 2012 were non-cash impairment charges of $0.21 per share. Net income for
the six months ended June 30, 2013 was $79.1 million or $0.65 per share
compared to $34.9 million or $0.29 per share for 2012.

Reported FFO was $46.1 million or $0.37 per share for the second quarter of
2013, compared to $55.1 million or $0.45 per share for 2012. Included in the
2013 amount was the write-off of preferred redemption costs of $0.13 per share
and excluded from 2012 amount are impairments of $0.20 per share, as they
relate to operating properties. Year-to-date, Reported FFO was $112.1 million
or $0.90 per share for 2013 compared to $111.4 million or $0.90 per share for
2012.

Recurring FFO for the quarter ended June 30, 2013 was $0.49 per share or $61.4
million. For the same quarter last year, Recurring FFO was $0.47 per share or
$57.4 million. The increase in Recurring FFO over the prior year was primarily
due to increases in net operating income from our existing portfolio, reduced
interest expense from favorable debt refinancings and reduced preferred share
dividends due to redemptions. These increases were partially offset by the
impact of the Company’s disposition program. For the six months, Recurring FFO
was $120.3 million or $0.97 per share for 2013 compared to $114.2 million or
$0.93 per share for 2012.

A reconciliation between net income attributable to common shareholders to
Reported FFO and Recurring FFO is listed on page 5 of the Company’s
supplemental package.

On June 5, 2013, the Company completed the redemption of $200 million of its
6.50% Series F Cumulative Redeemable Preferred Shares, leaving $150 million of
these Series F shares outstanding. As a result of the transaction, preferred
redemption costs totaling $15.9 million were expensed.

Operating Results

Same Property Net Operating Income ("SPNOI") increased by a strong 5.0% for
the quarter primarily due to increased occupancy and a reduction in merchant
fallouts. Year-to-date, SPNOI increased 4.4%.

Occupancy increased to 94.2% in the second quarter from 93.7% in the prior
quarter and by 0.8% from 93.4% in the second quarter of 2012. Occupancy of
small shop space increased by 0.4% from the prior quarter and 0.8% from the
same quarter of the prior year to 88.6%.

The Company produced strong leasing results during the second quarter with 377
new leases and renewals, totaling 1.4 million square feet. These transactions
were comprised of 156 new leases and 221 renewals, which represent annualized
revenues of $9.3 million and $11.3 million, respectively. The average rental
rate increase on new leases signed during the quarter was an exceptional
19.3%.

“This was a truly outstanding quarter for operations. Both the 5.0% increase
in Same Property NOI and the jump in occupancy up to 94.2% are clear
reflections of our high quality portfolio and the benefits of a best-in-class
operating platform manned by a great team of associates,” said Johnny Hendrix,
Executive Vice President and Chief Operating Officer.

Capital Recycling

During the quarter, the Company sold eleven non-core properties, five of which
were owned in various joint ventures, and three land parcels for $108.2
million. As communicated previously, the Company is focused on selling assets
which do not meet its current investment requirements and redeploying that
capital into higher quality assets in its target markets. Year-to-date, the
Company has sold $123.9 million in assets.

During the quarter, the Company completed the acquisition of two outstanding
shopping centers. Queen Anne Marketplace in Seattle, Washington is a 66,000
square foot shopping center anchored by Metropolitan Market, an upscale
neighborhood grocer operating in a densely populated, high barrier-to-entry
urban infill location. The three-mile trade area enjoys a population of over
200,000 people with over 68% holding college degrees. This was the first
property purchased in a joint venture between the Company and Bouwinvest in
which Weingarten will hold a 51% interest. The Company also acquired
Independence Plaza, a 324,000 square foot center in Laredo, Texas. This
shopping center features a top performing H-E-B, T.J. Maxx, Ross, Hobby Lobby,
Petco and Ulta Beauty. Independence Plaza is 97% leased and generates
approximately 80% of its income from these national retailers. The Laredo MSA
has the largest job growth forecast in the nation over the next 10 years and
is influenced by the Eagle Ford Shale and an incredible pent up demand from
millions of people in Northern Mexico who have very limited shopping
opportunities. Year-to-date, the Company has invested $89.3 million in quality
shopping centers in great markets.

“I am extremely pleased with the results of our capital recycling program this
quarter. Our very active disposition program generated more than sufficient
capital to complete these high quality investments, which are great additions
to our already strong portfolio,” said Drew Alexander, President and Chief
Executive Officer.

2013 Guidance

The Company is increasing Recurring FFO guidance and revising certain other
guidance metrics as follows:

                                Original Guidance     Revised Guidance
Recurring FFO Per Diluted          $1.84 - $1.90           $1.89 - $1.93
Share
Same Property NOI                  +2% to +3%              +3% to +3.5%
Acquisitions                       $175-$225 million       $100-$150 million
New Development                    $25-$75 million         $15-$50 million
Dispositions                       $200 - $300 million     $250 - $350 million
                                                           

Dividends

The Board of Trust Managers declared a quarterly cash dividend of $0.305 per
common share payable on September 13, 2013 to shareholders of record on
September 5, 2013.

The Board of Trust Managers also declared dividends on the Company’s 6.50%
Series F Cumulative Redeemable Preferred Shares (NYSE:WRIPrF) of $0.40625 per
share for the quarter payable on September 13, 2013 to shareholders of record
on September 5, 2013.

Conference Call Information

The Company also announced that it will host a live webcast of its quarterly
conference call on August 1, 2013 at 10:00 a.m. Central Time. The live webcast
can be accessed via the Company’s website at www.weingarten.com.
Alternatively, if you are not able to access the call on the web, you can
listen live by phone by calling (888) 771-4371 (conference ID # 32913549). A
replay will be available through the Company’s website starting approximately
two hours following the live call.

About Weingarten Realty Investors

Weingarten Realty Investors (NYSE: WRI) is a shopping center owner, manager
and developer. At June 30, 2013, the Company owned or operated under long-term
leases, either directly or through its interest in real estate joint ventures
or partnerships, a total of 281 properties which are located in 21 states
spanning the country from coast to coast. These properties represent
approximately 51.5 million square feet of which our interests in these
properties aggregated approximately 30.8 million square feet of leasable area.
To learn more about the Company’s operations and growth strategies, please
visit www.weingarten.com.

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.

Weingarten Realty Investors
(in thousands, except per share amounts)
Financial Statements
                                                           
                       Three Months Ended              Six Months Ended
                       June 30,                        June 30,
                       2013            2012            2013            2012
CONDENSED
CONSOLIDATED           (Unaudited)                     (Unaudited)
STATEMENTS OF
INCOME
Rentals, net           $ 127,828       $ 116,013       $ 251,890       $ 227,951
Other Income            3,749         2,584         6,389         5,262   
  Total Revenues        131,577       118,597       258,279       233,213 
Depreciation and         38,190          32,465          76,895          64,731
Amortization
Operating                25,003          22,906          49,452          44,520
Expense
Real Estate              15,444          13,976          30,104          27,268
Taxes, net
Impairment Loss          165             2,536           221             9,388
General and
Administrative          6,194         6,378         12,861        14,685  
Expense
  Total Expenses        84,996        78,261        169,533       160,592 
Operating Income         46,581          40,336          88,746          72,621
Interest                 (28,772 )       (28,628 )       (46,175 )       (59,359 )
Expense, net
Interest and
Other Income,            2,098           582             3,924           2,968
net
Gain on Sale of
Real Estate
Joint Venture            83              -               11,592          5,562
and Partnership
Interests
Equity in
Earnings
(Losses) of Real
Estate Joint             4,729           (15,695 )       9,342           (11,620 )
Ventures and
Partnerships,
net
(Provision)
Benefit for             (197    )      279           (33     )      313     
Income Taxes
  Income (Loss)
  from                  24,522        (3,126  )      67,396        10,485  
  Continuing
  Operations
Operating Income
from                     1,379           4,539           3,180           9,492
Discontinued
Operations
Gain on Sale of
Property from           78,012        31,264        78,012        34,898  
Discontinued
Operations
  Income from
  Discontinued           79,391          35,803          81,192          44,390
  Operations
Gain on Sale of         265           84            407           524     
Property
Net Income               104,178         32,761          148,995         55,399
Less: Net Income
Attributable to         (37,742 )      (1,342  )      (39,209 )      (2,783  )
Noncontrolling
Interests
Net Income
Adjusted for             66,436          31,419          109,786         52,616
Noncontrolling
Interests
Less: Preferred          (5,313  )       (8,869  )       (12,753 )       (17,738 )
Share Dividends
Less: Redemption
Costs of                (15,702 )      -             (17,944 )      -       
Preferred Shares
Net Income
Attributable to
Common                 $ 45,421       $ 22,550       $ 79,089       $ 34,878  
Shareholders --
Basic
                                                                       
Net Income
Attributable to
Common                 $ 45,421       $ 22,550       $ 79,089       $ 34,878  
Shareholders --
Diluted
                                                                       
FUNDS FROM
OPERATIONS
Numerator:
  Net Income
  Attributable         $ 45,421        $ 22,550        $ 79,089        $ 34,878
  to Common
  Shareholders
  Depreciation
  and                    37,511          33,321          76,182          70,940
  Amortization
  Depreciation
  and
  Amortization
  of
  Unconsolidated
  Real Estate
    Joint
    Ventures and         4,434           5,363           8,927           11,007
    Partnerships
  Impairment of
  Operating
  Properties and         165             5,051           457             14,830
  Real Estate
  Equity
  Investments
  Impairment of
  Operating
  Properties of
  Unconsolidated
  Real Estate
    Joint
    Ventures and         3               19,889          366             19,889
    Partnerships
  Gain on Sale
  of Property
  and Interests          (41,906 )       (31,334 )       (53,553 )       (40,907 )
  in Real Estate
  Equity
  Investments
  Gain on Sale
  of Property of
  Unconsolidated
  Real Estate
    Joint
    Ventures and        -             (123    )      (243    )      (123    )
    Partnerships
  Funds from
  Operations --          45,628          54,717          111,225         110,514
  Basic
  Adjustments
  for Recurring
  FFO:
    Income
    Attributable
    to Operating         446             432             891             863
    Partnership
    Units
    Other
    Impairment           -               -               -               244
    Loss, net of
    tax
    Redemption
    Costs of             15,889          -               18,131          -
    Preferred
    Shares
    Write-off of
    Debt Costs,          -               -               (9,667  )       -
    net of tax
    Acquisition          125             156             410             492
    Costs
    Other, net          (673    )      2,123         (673    )      2,123   
    of tax
  Recurring
  Funds from           $ 61,415       $ 57,428       $ 120,317      $ 114,236 
  Operations --
  Diluted
                                                                       
Denominator:
  Weighted
  Average Shares        121,286       120,661       121,172       120,571 
  Outstanding --
  Basic
                                                                       
  Weighted
  Average Shares        122,574       120,661       122,395       120,571 
  Outstanding --
  Diluted
                                                                       
  Weighted
  Average Shares        124,129       123,277       123,951       123,145 
  Outstanding --
  Diluted (FFO)
                                                                       
PER SHARE DATA
Earnings Per
Common Share --        $ 0.37         $ 0.19         $ 0.65         $ 0.29    
Basic
                                                                       
Earnings Per
Common Share --        $ 0.37         $ 0.19         $ 0.65         $ 0.29    
Diluted
                                                                       
FFO -- Per             $ 0.37         $ 0.45         $ 0.90         $ 0.90    
Diluted Share
                                                                       
Recurring FFO --
Per Diluted            $ 0.49         $ 0.47         $ 0.97         $ 0.93    
Share
                                                                       

Weingarten Realty Investors
(in thousands)
Financial Statements
                                                         
                                                                
                                             June 30,           December 31,
                                             2013               2012
CONDENSED CONSOLIDATED BALANCE SHEETS        (Unaudited)        (Audited)
ASSETS
                                                                
Property                                     $ 4,373,891        $ 4,399,850
Accumulated Depreciation                       (1,052,585 )       (1,040,839 )
Property Held for Sale, net                    8,698              -
Investment in Real Estate Joint                285,666            289,049
Ventures and Partnerships, net
Notes Receivable from Real Estate              85,004             89,776
Joint Ventures and Partnerships
Unamortized Debt and Lease Costs, net          140,938            135,783
Accrued Rent and Accounts Receivable,          70,572             79,540
net
Cash and Cash Equivalents                      23,374             19,604
Restricted Deposits and Mortgage               9,490              44,096
Escrows
Other, net                                    174,266          167,925    
          Total Assets                       $ 4,119,314       $ 4,184,784  
                                                                
LIABILITIES AND EQUITY
                                                                
Debt, net                                    $ 2,350,762        $ 2,204,030
Accounts Payable and Accrued Expenses          107,173            119,699
Other, net                                    110,029          120,900    
          Total Liabilities                   2,567,964        2,444,629  
                                                                
Commitments and Contingencies
                                                                
EQUITY
                                                                
Preferred Shares of Beneficial                 2                  7
Interest
Common Shares of Beneficial Interest           3,683              3,663
Additional Paid-In Capital                     1,689,278          1,934,183
Net Income Less Than Accumulated               (331,208   )       (335,980   )
Dividends
Accumulated Other Comprehensive Loss          (15,664    )      (24,743    )
          Shareholders' Equity                1,346,091        1,577,130  
Noncontrolling Interests                      205,259          163,025    
          Total Liabilities and Equity       $ 4,119,314       $ 4,184,784  

Contact:

Weingarten Realty
Michelle Wiggs, 713-866-6050