WRI  Weingarten Realty Investors

Exchange

NYSE

Sector

Consumer Services

Industry

Real Estate Investment Trusts

Market Cap.

4.66B

Vuru Grade

32.50/100

Current Price

$36.39
-0.10 (-0.27%)

Growth Price

$7.78
Overvalued by 78.62%

Company Metrics

  • P/E 19.01
  • P/S 8.30
  • P/B 3.05
  • EPS 1.91
  • Cash ROIC 0.42%
  • Cash Ratio -
  • Dividend 1.46 / 4.03 %
  • Avg. Vol. 624,866.00
  • Shares 128.06M
  • Market Cap. 4.66B

Company Description

Weingarten Realty Investors operates as a real estate investment trust (REIT). The company engages in the management, acquisition, and development of real estate. It operates in two segments, Shopping Center and Industrial. The Shopping Center segment engages in the acquisition, development, and management of real estate, primarily anchored neighborhood and community shopping centers located in Te... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

UPDATE: Weingarten Realty Investors (WRI) Tops Q4 EPS by 12c
StreetInsider.com - Feb 21, 2017
Weingarten Realty Investors (NYSE: WRI) reported Q4 FFO of $0.34, $0.12 better than the analyst estimate of $0.22. Revenue for the quarter came in at $0 versus the consensus estimate of $138.37 million.
Weingarten Realty Investors Q4 Earnings Advance 12% - Nasdaq
Weingarten Realty Investors (WRI) Moves Higher on Volume Spike for February 22 - Equities.com
BRIEF-Weingarten Realty Investors Q4 earnings per share $0.34
Reuters - Feb 21, 2017
LONDON, Feb 22 The gap between short-dated German and U.S. government bond yields stood at its widest in nearly 17 years on Wednesday as the former fell to record lows and the latter nudged up in anticipation of rate increase signals.
Weingarten Realty Investors
MarketWatch - Dec 22, 2009
Weingarten Realty Investors. NYSE: WRI. GO. Set Alerts · Find a Broker · Join TD Ameritrade · Market Index · Overview Profile News Charts Financials Historical Quotes Analyst Estimates Options SEC Filings Insiders.
Weingarten Realty Investors is a Family Affair
reit.com - Nov 11, 2016
"Shut the computer down, don't look at stock screens," says the president and CEO of Houston-based Weingarten Realty Investors (NYSE: WRI). "Especially today, in this crazy digital world, it's important to block out some amount of time where you just ...
TIAA sells Palms at Town & Country in Kendall to Weingarten: $285M
The Real Deal Magazine - Aug 1, 2016
In one of South Florida's largest investment deals so far this year, Weingarten Realty Investors just closed its $285 million purchase of the Palms at Town & Country open-air shopping center in Kendall.
Public company acquires South Florida mall for $285M - South Florida Business Journal (blog)
Sale of The Palms at Town & Country in Miami Closed by HFF - Business Wire (press release)
Weingarten buys Deerfield Beach Mall for $93M
The Real Deal Magazine - May 6, 2016
Houston, Texas-based Weingarten Realty Investors paid $92.75 million for a nearly 180-acre retail center in Deerfield Beach.
Jamestown, Weingarten Realty score $170M loan for six shopping centers
The Real Deal Magazine - Apr 1, 2016
Jamestown owns 80 percent of the Northridge Shopping Center, while Weingarten Realty Investors, a publicly traded company, has the remaining 20 percent stake in the 18.5-acre retail property at 1003 East Commercial Boulevard.
Don't Mess With Texas: Weingarten Is Ripe For Rewards
Seeking Alpha (registration) - Feb 23, 2015
Last week Weingarten Realty Investors (NYSE:WRI) announced that its Board of Trust Managers increased the company's common dividend per share 6.2% to $0.345 per quarter or $1.38 on an annualized basis.
REIT Focus: Weingarten Realty Investors
Seeking Alpha - Apr 17, 2014
This REIT Focus from our commercial real estate newsletter, View of the Market, is on Weingarten Realty Investors (NYSE:WRI), a publicly-traded REIT engaged in the ownership, management and development of primarily food/drug anchored shopping ...
Weingarten Realty Investors Hit With Sex Discrimination Suit
Law360 (subscription) - Nov 5, 2012
Law360, New York (November 5, 2012, 4:54 PM EST) -- Real estate investment trust Weingarten Realty Investors was hit with a sex discrimination suit Monday in Texas federal court by a former executive who accused the company's top brass of maintaining ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for WRI to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate WRI's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$36.39 Current Price

$7.78 Growth Price (DCF)

Overvalued by 78.62%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


WRI's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$23.47 Book Price

Overvalued by 35.49%


Poor Cash Return on Invested Capital over the past 5 years

WRI has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

WRI has only created $0.42 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 70.74M -66.58M 51.24M 96.26M -61.07M
divided by
Invested Capital 4.59B 4.18B 4.22B 3.81B 3.90B
Cash ROIC 1.54% -1.59% 1.21% 2.52% -1.56%

Inconsistent Return on Equity over the past 5 years

WRI has generated adequate returns with capital that shareholders have invested. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

WRI has generated $12.71 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 15.00M 152.42M 265.16M 307.58M 181.22M
divided by
Stockholders' Equity 1.66B 1.58B 1.38B 1.49B 1.39B
Return on Equity 0.91% 9.66% 19.24% 20.71% 13.04%

Mediocre Business Performance over the past 10 years

WRI isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

WRI has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow -637.88M -188.77M -74.74M 135.40M 71.65M 70.74M -66.58M 51.24M 96.26M -61.07M

Weak Balance Sheet

WRI's financial position is not ideal. The key is to check whether WRI is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 4.38B 4.99B 5.11B 4.89B 4.81B 4.59B 4.18B 4.22B 3.81B 3.90B
Current Liabilities - - - - - - - - - -
Total Liabilities 3.25B 3.52B 3.69B 2.99B 3.01B 2.93B 2.61B 2.85B 2.33B 2.51B
Stockholder' Equity 1.13B 1.47B 1.43B 1.90B 1.80B 1.66B 1.58B 1.38B 1.49B 1.39B
Current Ratio - - - - - - - - - -
TL-to-TA 0.74 0.71 0.72 0.61 0.63 0.64 0.62 0.67 0.61 0.64

Consistent Reinvestment of Profits over the past 10 years

WRI has consistently retained profits. This may put WRI in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, WRI can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings -786,000.00 42.74M -20.12M -37.35M -151.78M -304.50M -335.98M -300.54M -212.96M -222.88M
Retained Earnings Growth - 5,537.53% -147.07% -85.67% -306.37% -100.62% -10.34% 10.55% 29.14% -4.66%

Varying Competitive Advantage over the past 10 years

WRI likely has a competitive advantage which prevents other companies from entering or competing in their industry. However, there is a substantial variation in their Net Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$33.52 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 305.01M 238.02M 151.68M 150.01M 48.76M 15.00M 152.42M 265.16M 307.58M 181.22M
divided by
Revenue 561.38M 599.05M 614.97M 572.11M 554.67M 541.56M 503.54M 497.73M 514.41M 512.84M
Net Profit Margin 54.33% 39.73% 24.66% 26.22% 8.79% 2.77% 30.27% 53.27% 59.79% 35.34%

Weak Pricing Power over the past 10 years

WRI is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that WRI has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit - - - - - - - - - -
divided by
Revenue 561.38M 599.05M 614.97M 572.11M 554.67M 541.56M 503.54M 497.73M 514.41M 512.84M
Gross Margin - - - - - - - - - -

High Capital Intensity over the past 10 years

WRI spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

245.91% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 880.47M 412.08M 294.89M 108.91M 142.97M 143.99M 293.91M 182.76M 144.51M 305.48M
divided by
Net Income 305.01M 238.02M 151.68M 150.01M 48.76M 15.00M 152.42M 265.16M 307.58M 181.22M
Capital Expenditure Ratio 288.67% 173.13% 194.41% 72.60% 293.23% 959.79% 192.83% 68.92% 46.98% 168.57%

Very Strong Dividend History over the past 10 years

WRI has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests WRI is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 173.01M 194.49M 213.57M 168.58M 158.01M 189.28M 183.85M 186.05M 220.40M 180.11M
divided by
Shares Outstanding 90.19M 88.89M 84.92M 110.18M 120.78M 120.33M 121.71M 122.46M 124.37M 124.33M
Dividend Paid Per Share 1.92 2.19 2.52 1.53 1.31 1.57 1.51 1.52 1.77 1.45
Price at Year End 33.29 24.19 16.29 18.31 22.88 21.82 26.55 27.86 35.53 34.89
Dividend Yield 5.76% 9.04% 15.44% 8.36% 5.72% 7.21% 5.69% 5.45% 4.99% 4.15%

History of Stock Buybacks over the past 10 years

WRI has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 90.19M 88.89M 84.92M 110.18M 120.78M 120.33M 121.71M 122.46M 124.37M 124.33M
Stock Bought Back - 1.45% 4.68% -22.93% -8.78% 0.37% -1.13% -0.62% -1.54% 0.03%
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