Investor Presentation Fourth Quarter Images from The Palms at Town & Country, Miami, FL

Size: px

Start display at page:

Download "Investor Presentation Fourth Quarter Images from The Palms at Town & Country, Miami, FL"

Mervin Sanders
6 years ago
Views:

1 Investor Presentation Fourth Quarter 2017 Images from The Palms at Town & Country, Miami, FL

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

2 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 Laredo, TX Forward Looking 2

3 Company Overview 2200 Westlake Seattle, WA 3

4 Company Overview As of 12/31/17 Transformed portfolio delivering sector leading results 75% Supermarket Anchored averaging $633 PSF Strong Balance Sheet with well laddered debt maturities 15.00% 10.00% Common Equity $4.3 Billion 67% Total Market Capitalization (based on December 31, 2017 closing stock price of $32.87) Total Return % 12.60% $6.4 Billion 10.21% Debt $2.1 Billion 33% ~ 6% Dividend Yield $1.58 annually (as of 2/21/18) 5.00% 0.00% Since IPO WRI NAREIT Equity REIT Index Company Overview 4

5 Why Weingarten? This is not the Weingarten of the past Over the 7 years ( ), 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 3.1% Occupancy increased to 95% Average Base Rent increased 10% Strong Balance Sheet Metrics positioned for growth opportunities Net Debt to EBITDA of 5.3x vs 7.8x in 2011 Debt to Market Cap of 32.8% vs 53.1% in 2011 Well laddered maturity schedule Company Overview 5

Proven Management Team Drew Alexander President and CEO

years in industry Stanford Alexander Chairman of the

COO - 35 years in industry West / Mountain Central

industry Gerald Crump 16 years in industry Lee Brody 25

6 Proven Management Team Drew Alexander President and CEO - 37 years in industry Steve Richter Exec VP / CFO - 35 years in industry Stanford Alexander Chairman of the Board - 60 years in industry Johnny Hendrix Exec VP / COO - 35 years in industry West / Mountain Central Mid-Atlantic Southeast Miles Sanchez 21 years in industry Gerald Crump 16 years in industry Lee Brody 25 years in industry Steven Weingarten 35 years in industry Company Overview 6

Focused Target Markets >90% of ABR is in Target Markets Regional Office Target

Solid job growth Pro business environment/low tax states Highly educated

the US Immigration to the US and strong international trade Locations with

7 Focused Target Markets >90% of ABR is in Target Markets Regional Office Target Market Target Market Selection Criteria Markets with Strong Demographic Profiles Solid job growth Pro business environment/low tax states Highly educated population High density / low GLA per capita Benefiting from migration within the US Immigration to the US and strong international trade Locations with Strong Barriers Geographic / Physical Regulatory / Zoning Density / Economic Company Overview 7

8 High Quality Portfolio Falls Pointe Shopping Center Raleigh, NC 8

Top 12 Centers Comprise 20% of Total Portfolio As of 2-21-18 1.

Westminster Center Los Angeles, CA ABR: $23.

Nordstrom Rack, Dick s, Marshalls, CVS, Total Wines 4.

03 PSF AHHI: $156,306 Major Tenants: Kroger, Barnes & Noble, Gap,

8000 Sunset Strip Los Angeles, CA ABR: $19.

65 PSF % College Grads: 52% Major Tenants: Ross Dress For Less,

9 Top 12 Centers Comprise 20% of Total Portfolio As of The Palms at Town & Country Miami, FL 2. River Oaks SC Houston, TX 3. Westminster Center Los Angeles, CA ABR: $23.04 PSF 3 Mile Population: 170,440 Major Tenants: Publix, Kohl s, Nordstrom Rack, Dick s, Marshalls, CVS, Total Wines 4. Colonial Plaza Orlando, FL ABR: $39.03 PSF AHHI: $156,306 Major Tenants: Kroger, Barnes & Noble, Gap, Americas, Sur La Table, Talbots Sunset Strip Los Angeles, CA ABR: $19.69 PSF 3 Mile Population: 210,046 Major Tenants: Home Depot, Albertsons, Ross Dress For Less, Petco, Rite Aid 6. Village Plaza at Bunker Hill Houston, TX ABR: $15.65 PSF % College Grads: 52% Major Tenants: Ross Dress For Less, Marshalls, Old Navy, Floor & Décor, Hobby Lobby, Staples, Stein Mart, Barnes & Noble, Petco ABR: $43.61 PSF AHHI: $118,667 Major Tenants: Trader Joe s, CVS, Crunch Fitness, CB2, Sundance Cinemas ABR: $24.72 PSF AHHI: $134,794 Major Tenants: HEB, Academy, Toys R Us, Sam Moon, PetSmart, Nordstrom Rack High Quality Portfolio 9

Top 12 Centers Comprise 20% of Total Portfolio As of 2-21-18 7.

Arhaus, Grand Lux Café, Morton s ABR: $17.

Marshalls, Bed Bath & Beyond, Michaels, Regal Theater ABR: $22.

Hour Fitness 10. Mueller Regional Retail Center Austin, TX 11.

Overton Park Plaza Fort Worth, TX ABR: $17.

10 Top 12 Centers Comprise 20% of Total Portfolio As of Centre at Post Oak Houston, TX 8. Largo Mall Largo, FL 9. Chino Hills Los Angeles, CA ABR: $36.54 PSF AHHI: $143,718 Major Tenants: Marshalls, Nordstrom Rack, Old Navy, Arhaus, Grand Lux Café, Morton s ABR: $17.61 PSF 3 Mile Population: 113,873 Major Tenants: Target, PetSmart, Bealls, Marshalls, Bed Bath & Beyond, Michaels, Regal Theater ABR: $22.08 PSF AHHI: $101,772 Major Tenants: Smart & Final, Rite Aid, Dollar Tree, 24 Hour Fitness 10. Mueller Regional Retail Center Austin, TX 11. Hilltop Village Center Alexandria, VA 12. Overton Park Plaza Fort Worth, TX ABR: $17.06 PSF % College Grads: 50% Major Tenants: Marshalls, Home Depot, Best Buy, PetSmart, Old Navy, Bed Bath & Beyond ABR: $33.93 PSF % College Grads: 58% Major Tenants: Wegmans, L.A. Fitness ABR: $16.40 PSF 3 Mile Population: 112,607 Major Tenants: Sprouts, PetsSmart, T.J. Maxx, Goody Goody Wines, buybuy Baby High Quality Portfolio 10

11 Proven Operating Results The Company s transformed shopping center portfolio has produced sector leading results 5.0% 2.5% 0.0% -2.5% -0.6% Same Property NOI* 4.2% 4.2% 3.4% 3.3% 2.7% 0.2% 0.4% 2.2% 96.0% 94.0% 92.0% 93.0% 91.8% Leased Occupancy 95.4% 95.1% 94.8% 93.7% 93.0% 93.0% 94.3% 94.8% -5.0% $20.00 $18.00 $16.00 $14.00 $ % ABR PSF $16.92 $16.24 $15.66 $15.14 $14.51 $13.16 $13.31 $13.60 $18.69 $ % 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% % 2.0% Rent Growth 4.2% 6.3% 10.1% 12.5% 13.1% 11.6% -0.4% -2.5% WRI Peer Average Note: Q4 17 peer information includes DDR, KIM, BRX, RPAI, and REG *SPNOI excludes redevelopment High Quality Portfolio 11

12 Small Shop Leasing Other 93 Leases 29% Apparel 18 Leases 6% Service 42 Leases 13% 12% Beauty 39 Leases 6% 16% 18% Health 59 Leases Full Service Restaurant 21 Leases Quick Serve 50 Leases Note: Number of leases for the 12 months ended 12/31/2017. High Quality Portfolio 12

13 Leasing High Quality National Brands Three or more signed leases in the period 7 signed leases 6 signed leases 3 signed leases 5 signed leases 4 signed leases 3 signed leases 3 signed leases 3 signed leases 3 signed leases 3 signed leases 3 signed leases 3 signed leases Note: Based on signed leases for the 18 months ended 12/31/17. High Quality Portfolio 13

14 Leasing High Quality Anchor Tenants Signed leases last 18 months Note: Based on signed leases for the 18 months ended 12/31/17. High Quality Portfolio 14

15 Strong Tenant Base WRI Top Ten Tenants (% of Total Base Minimum Rent) 80% 2.5% 70% 2.3% 1.9% 1.6% 1.6% 1.6% 1.2% 1.2% 1.2% 60% 50% 40% 30% 20% 10% 66% 75% Transformation means stronger credit quality 34% 25% TOTAL 1.1% 16.2% 0% National/Regional Local High Quality Portfolio 15

16 2017 Manageable Store Closures Impact to WRI Expected manageable impact to cost around $0.01 in 2017 FFO and <1.5% of ABR Closure Tenants since 3/31 LIMITED EXPOSURE WRI Store Count 9/30 WRI Store Count 12/31 12/31 % ABR % % % % % % Total % NO EXPOSURE 16

Highly Productive Grocers Grocers Sales Average $633 PSF 75% of Our ABR is in Shopping Centers with a Grocer Component Portfolio Segmentation 75% Grocer Types % of ABR Sales PSF Grocery Anchored 33%

17 Highly Productive Grocers Grocers Sales Average $633 PSF 75% of Our ABR is in Shopping Centers with a Grocer Component Portfolio Segmentation 75% Grocer Types % of ABR Sales PSF Grocery Anchored 33% Power and Specialty 25% Grocery with Another Anchor 42% $631 PSF $639 PSF National 43% $596 Regional 23% $695 Specialty 8% $673 Independent 1% $351 Total 75% $633 Strong Grocery Ties: Relating to a grocery store started in 1901, Weingarten Realty has always emphasized the stability of grocery anchored centers to our continued success. High Quality Portfolio 17

Internet Resistant As of 12/31/17 Internet Resistant 80% -Quick Service and Full Service Restaurants 18% -Services 16% -Supermarkets 12% -General Merchandise and Other Misc.

18 Internet Resistant As of 12/31/17 Internet Resistant 80% -Quick Service and Full Service Restaurants 18% -Services 16% -Supermarkets 12% -General Merchandise and Other Misc. Retail 9% 80% Potential Risk 15% -Some Apparel 5% -Sporting Goods 2% -Beauty Supplies 2% -Drugstores 2% -Footwear 1% -Recreation/Entertainment 7% -Liquor/Tobacco 1% -Discount Apparel 6% -Home Furnishings 5% -Medical 4% 5% 15% -Optical 1% -Party Supplies 1% High Risk 5% -Pet Stores and Services 3% % of WRI ABR -Office 2% -Electronics 2% -Books 1% High Quality Portfolio 18

Corporate Responsibility Weingarten Realty s principals in

honor and respect people, communities and the environment.

the category of Best Sustainability Program.

Named a Green Lease Leader at the U.S. Dep.

Increased GRESB score each year of submission.

CA) has been recognized as an IREM Certified Sustainable Property

families, we believe we are building a strong and healthy workforce.

challenges, nutrition consultation, financial seminars and much

benefitting United Way raises over $150,000 for the communities we

Weingarten Realty also supports causes that are important to our

Organizations backed include: Environment Weingarten Realty

and an opportunity to benefit our patrons, tenants, investors and

19 Corporate Responsibility Weingarten Realty s principals in Corporate Responsibility embrace achieving success in ways that honor and respect people, communities and the environment. Awards and Acknowledgements: 2016 REME Award Finalist Finalist in the category of Best Sustainability Program. WRI was one of only 5 finalists in this category Green Lease Leader Named a Green Lease Leader at the U.S. Dep. of Energy s (DOE) Better Buildings Summit GRESB Survey Participant Increased GRESB score each year of submission. IREM Certified Sustainable Property Centerwood Plaza (Bellflower, CA) has been recognized as an IREM Certified Sustainable Property People By promoting healthy lifestyles for associates and their families, we believe we are building a strong and healthy workforce. Weingarten s Award Winning Wellness Program includes exercise challenges, nutrition consultation, financial seminars and much more. Communities Weingarten s annual philanthropy campaign benefitting United Way raises over $150,000 for the communities we serve. Weingarten Realty also supports causes that are important to our associates, often matching what they raise individually. Organizations backed include: Environment Weingarten Realty recognizes that environmental responsibility is both an obligation and an opportunity to benefit our patrons, tenants, investors and the property as a whole. Areas of focus include Recycling, Energy Management, Water Management and Alternative Transportation. View our first annual Corporate Sustainability Report at High Quality Portfolio 19

20 Strategic Growth Hilltop Village Center Alexandria, VA 20

Strategic Growth (SF in thousands) Developments Large Re-Developments The Whittaker

Return on Investment ~7% West Alex (formerly Gateway Alexandria) Alexandria, VA 100 SF

(formerly Columbia Pike) Arlington, VA 65 SF (retail) $129,093 AHHI / 303,001 pop

21 Strategic Growth (SF in thousands) Developments Large Re-Developments The Whittaker Seattle, WA 63 SF (retail) 93% Leased $104,212 AHHI / 87,061 pop. Return on Investment ~7% West Alex (formerly Gateway Alexandria) Alexandria, VA 100 SF (retail) $115,533 AHHI / 291,160 pop Return on Investment ~5% Centro Arlington (formerly Columbia Pike) Arlington, VA 65 SF (retail) $129,093 AHHI / 303,001 pop Return on Investment ~6% Winter Park Corners Winter Park, FL 83 SF 100% Leased $89,141 AHHI / 105,519 pop. River Oaks Houston, TX 30 story mixed-use tower with 10 SF (retail) $156,306 AHHI / 175,580 pop Sunset Point 19 Clearwater, FL 256 SF 87% Leased $63,733 AHHI / 104,001 pop. Strategic Growth 21

Creating Value through New / Re Development In thousands As of 12/31/17 Properties Currently Under Development Cost Incurred - YTD 2017 Cost Incurred - To - Date Estimated Final The Whittaker 26,460

22 Creating Value through New / Re Development In thousands As of 12/31/17 Properties Currently Under Development Cost Incurred - YTD 2017 Cost Incurred - To - Date Estimated Final The Whittaker 26,460 26,698 31,273 West Alex (formerly Gateway Alexandria) 30,393 76, ,024 Centro Arlington (formerly Columbia Pike) 36,267 37, ,772 Est Final ROI% Total New Development $93,120 $140,436 $363, % Strategic Growth 22

23 Creating Value through New / Re Development In thousands Cost Incurred: YTD 2017 Redevelopments Total Activity Cost Incurred: Inception-to-Date Estimated Final Est Final ROI% Total $30,436 $89,236 $284, % Redevelopment Spotlight: The Driscoll at River Oaks Shopping Center, a 30- story residential high-rise with 300 luxury living spaces and 10,000 SF of ground floor retail. See page 27 for more information. $500 $400 $300 $200 $100 Projected Investment ($MM) New / Re Developments $ Future Total 500 New Dev $42 $27 $68 $93 $103 Redevelopment $19 $23 $32 $30 $41 + Strategic Growth 23

New Development The Whittaker - Seattle, WA

3M Avg HH Income 3 Mi: $104,212 NOI: $2.

Investment: ~7% $130 million total project 63,000

levels of parking 6 story mixed-use development

24 New Development The Whittaker - Seattle, WA Population 3 Mi: 87,061 Investment: $31.3M Avg HH Income 3 Mi: $104,212 NOI: $2.1M Property Size: 63,043 SF (retail) Return on Investment: ~7% $130 million total project 63,000 SF of retail and 375 residential units with 2 levels of parking 6 story mixed-use development Lennar will construct and sell WRI the retail and 1 level of parking Strategic Growth 24

25 Demographics 3-Mile Radius 5-Mile Radius Population 291, ,683 Households 132, ,448 Avg HHI $115,533 $134,158 Median HHI $90,539 $104,245 % College Graduates 62.55% 67.82% Median Housing Value $560,640 $631,271 WEST ALEX FACT SHEET (Formerly Gateway Alexandria) WRI Net Investment Summary Retail ~$49M 100K SF Office ~$21M 23K SF Multifamily ~$127M 278 residences Est. Total Investment ~$197M Anchored by an upscale 62,000 SF Harris Teeter grocery store. Total Number of Employees - 134,000 workers within 3 miles and 381,000 workers within a 5- mile radius. WRI plans to sell the office pad and residential component after completion. 25

26 Demographics 3-Mile Radius CENTRO ARLINGTON FACT SHEET 5-Mile Radius Population 303, ,997 Households 143, ,285 Avg HHI $129,093 $141,103 Median HHI $101,096 $106,313 % College Graduates 68.44% 71.07% Median Housing Value $618,034 $666,436 (Formerly Columbia Pike Village Center) WRI Net Investment Summary Retail ~$28M 65K SF Multifamily ~$107M 366 residences Est. Total Investment ~$135M Anchored by an upscale 52,000 square foot Harris Teeter grocery store. Total Number of Employees - 207,000 workers within 3 miles and 670,000 workers within a 5- mile radius. WRI plans to sell the residential component after completion. 26

Potential New / Re Development Spotlight River Oaks Shopping Center

Investment: $150M Total Project WRI is partnering with Hanover Company for

estimated 10,000 SF of ground floor retail.

27 Potential New / Re Development Spotlight River Oaks Shopping Center Houston, TX Est. Investment: $150M Total Project WRI is partnering with Hanover Company for the development of a 30- story residential luxury high rise within River Oaks Shopping Center. The residential component will feature over 300 luxury living spaces and estimated 10,000 SF of ground floor retail. Ground breaking is scheduled for 2018 with an estimated delivery date in Population: 3 Mi: 175,580 5 Mi: 459,966 Average Household Income: 3 Mi: $156,306 5 Mi: $133,005 Property Size: 10,000 SF (retail) Strategic Growth 27

Winter Park Corners caters to savvy consumers in the upscale, high-density Winter Park community in Northeast Orlando.

28 Creating Value Through Redevelopment Winter Park Corners Winter Park, FL Incremental Investment: $12.1M ROI: ~ 10% The redevelopment consists of adding a 30,000 square foot Sprouts and adding around 14,500 square feet of shop space buildings. Winter Park Corners caters to savvy consumers in the upscale, high-density Winter Park community in Northeast Orlando. This center offers an attractive location on the highly-traveled Aloma Avenue retail corridor and includes several restaurant options such as Outback Steakhouse and Jersey Mike's. Strategic Growth 28

29 Transformed Portfolio City Center Englewood Denver, CO 29

Transformed Portfolio = Goodbye Kansas Hello Hollywood!! Over the 7 years (2010 2016), sold $1.9 Billion and acquired $1.

efficiencies + 8000 Sunset Strip Shopping Center, Hollywood, CA= Properties that produce sustained growth in NOI Recession and internet resistant cash flow Dispositions: -

30 Transformed Portfolio = Goodbye Kansas Hello Hollywood!! Over the 7 years ( ), sold $1.9 Billion and acquired $1.3 Billion of property Acquisitions: + High barrier-to-entry trade areas + Located in strong growth markets + Primarily supermarket anchored + Larger properties to drive efficiencies Sunset Strip Shopping Center, Hollywood, CA= Properties that produce sustained growth in NOI Recession and internet resistant cash flow Dispositions: - Non-core markets and properties - Smaller centers - Limited growth prospects - Independent supermarkets Shawnee Village Shopping Center, Shawnee, KS Transformed Portfolio Quality Properties that demand higher NAV per dollar of NOI 30

31 Strategic Portfolio Transformation Complete - As of 12/31/16 Transformation results in dramatically improved portfolio quality Acquisitions Dispositions Change Number of Properties GLA SF 6.1 M 10.6 M Avg Base Rent PSF $20.88 $ % Average HH Income(a) $94,000 $80,000 18% Households(a) 57,000 39,000 46% Population(a) 136,000 95,000 43% College Graduates(a) 58.4% 36.6% 60% Grocer Sales PSF(b) $700 $417 68% Volume $1.3 Billion $1.8 Billion While selling lower quality properties in tertiary markets results in: Superior quality portfolio of national and regional tenants Sector leading operating results Platform positioned for sustainable growth Acquisitions to improve the quality of the portfolio: High quality acquisitions with superior demographics in major metropolitan markets Strong supermarkets (Whole Foods, H.E.B., Kroger, Wegmans, Publix) to drive traffic to retailers Embedded growth Total Portfolio Transformation 12/31/10 12/31/2016 Change Number of Properties GLA SF 32.8 M 28.3 M Avg Base Rent PSF $13.60 $ % Average HH Income(a) $80,000 $86,000 8% Households(a) 39,000 46,000 18% Population(a) 103, ,000 12% College Graduates(a) 37.0% 44.4% 20% Grocer Sales PSF $460 $630 37% (a) Weighted by ABR (b) Grocer Sales PSF As of 12/31/14 Transformed Portfolio 31

WRI in Houston - Transformed Portfolio As of 12-31-17 Nearly 70% of NOI is within 5 miles of The Galleria The per capita space in the trade area around our centers has declined over the past 5 years

32 WRI in Houston - Transformed Portfolio As of Nearly 70% of NOI is within 5 miles of The Galleria The per capita space in the trade area around our centers has declined over the past 5 years Total Houston Portfolio Today Average HH Income (a) $115,000 WRI Key Centers have higher AHHI and % college grads than the Houston CBSA Houston Centers primarily service Superzips Population (a) 155,000 Note: Demographics for 3 mile trade area (a) Weighted by ABR LEGEND Super Zip WRI Center Sold in whole or part 32

33 Strong Financial Position 8000 Sunset Strip Shopping Center Los Angeles, CA 33

34 Transformed Financial Position 7.0x 6.5x 6.0x 5.5x 5.0x Net Debt to EBITDA Debt Debt + Preferreds 48.0% 43.0% 38.0% 33.0% 28.0% Debt to Market Capitalization 44.4% 37.2% 42.0% 39.4% 32.5% 30.2% 32.8% 33.7% 32.8% Debt Debt + Preferred * Fixed Charge Coverage Secured Debt to Total Assets 4.0x 3.7x 3.4x 3.1x 2.8x 2.5x 2.2x 1.9x % 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 18.5% 14.3% 12.8% 9.6% 8.3% 8.1% *Remaining Series F Preferreds were redeemed May 2015 Strong Financial Position 34

$83 - $1 - $10 10 - Mortgage Debt Med-Term Notes/Bonds * Year 2020 includes the Term Loan ($200 million) which is at a floating rate of

35 Laddered Debt Maturities In Millions, at pro-rata As of 12/31/17 Weighted Average Interest Rate = 3.78% $350 $300 $250 $293 $309 $307 $257 $304 $278 $200 $ $100 $50 $0 $ $ $ $ $83 - $1 - $ Mortgage Debt Med-Term Notes/Bonds * Year 2020 includes the Term Loan ($200 million) which is at a floating rate of LIBOR bps that has been swapped to a fixed rate of 2.47%. The weighted average rate reflects the fixed rate. S&P: BBB, Stable Moody s: Baa1, Stable Strong Financial Position 35

36 Vision and Guidance The Whittaker Seattle, WA 36

37 Future Vision FFO Growth FFO Growth Range Assumptions Same Property NOI % Assumes 2.75% % SPNOI growth Redevelopment % $15 - $30 million at a 12% return Acquisitions % $200 - $300 million at 0 to 25 bps spread* Dispositions (0.75) (1.00%) $125 - $175 million at 100 bps spread* New Development % $75 - $125 million of completions at 250 bps spread* Annual FFO Growth Range % * All spreads are to our Weighted Average Cost of Capital which is assumed to be 60% equity and 40% debt Vision and Guidance 37

Same Property NOI Growth Contractual Rent Steps Average annual rent steps of 1-3% Rent Growth 15% of the portfolio GLA turns in a typical year Rent growth of 10-15% results in SPNOI impact of 1.

38 Same Property NOI Growth Contractual Rent Steps Average annual rent steps of 1-3% Rent Growth 15% of the portfolio GLA turns in a typical year Rent growth of 10-15% results in SPNOI impact of 1.35% % 1.00% % 1.35% % Misc Other items including percentage rent and ancillary income account for ~ 0.4% - 0.5% to SPNOI annually 0.40% % Stabilized SPNOI Growth 2.75% % Vision and Guidance 38

39 Guidance As of 12/31/ Guidance Net income attributable to common shareholders $ $2.34 Depreciation and amortization (Gain) on sale of property and interests in RE equity investments (1.19) (1.25) NAREIT FFO - Basic Income attributable to operating partnership units NAREIT FFO Per Common Share - Diluted $ $2.33 (Gain) on extinguishment of debt (0.01) (0.01) Other Core FFO Per Common Share - Diluted $ $2.33 Portfolio Activity Acquisitions $50 - $150 M Re / New Development $125 - $175 M Dispositions $250 - $450 M Operating Information Same Property Net Operating Income with redevelopments +2.5% to +3.5% Same Property Net Operating Income without redevelopments +2.0% to +3.0% Vision and Guidance 39

40 Guidance As of 12/31/ Annual Guidance Rollforward Low High Notes 2017 Core FFO Per Common Share - Diluted $2.45 $2.45 Same Property NOI Growth with redevelopment Guidance 2.5% - 3.5% Investment Activity 2017 Dispositions (0.17) (0.17) 2018 Dispositions (0.15) (0.18) Guidance of $250M - $450M 2018 Acquisitions Guidance of $50M - $150M Incremental New Development NOI Net Investment Activity (0.30) (0.32) Net G&A Expense (0.01) 0.00 Guidance of $25M - $26M Net Interest Expense Guidance of $70M - $71M 2017 Deferred Tax Adj All Other (0.01) Core FFO Per Common Share - Diluted $2.27 $2.33 Vision and Guidance 40

41 Relative Peer Multiples Stock Multiple Core FFO* Stock Price (as of 2/21/18) FRT ROIC REG RPAI WRI KIM BRX DDR $6.16 $1.18 $3.78 $1.00 $2.30 $1.44 $2.00 $1.14** $ $17.72 $56.74 $11.94 $27.15 $14.67 $15.29 $7.38 *Midpoint of 2018 Guidance **Previously stated Guidance Vision and Guidance 41

WRI Key Points Transformed Portfolio of High Quality, Grocery Anchored Shopping Centers Strong Balance Sheet with Great Laddering of Debt Maturities Enhanced Growth in Cash Flow,

42 WRI Key Points Transformed Portfolio of High Quality, Grocery Anchored Shopping Centers Strong Balance Sheet with Great Laddering of Debt Maturities Enhanced Growth in Cash Flow, FFO and NAV Improved Valuation and Expansion of Multiple Experienced Team of Real Estate Professionals with a Best in Class Operating Platform Hilltop Village Center Alexandria, VA 42

INVESTOR PRESENTATION FIRST QUARTER 2018

INVESTOR PRESENTATION FIRST QUARTER 2018 8000 Sunset Strip Shopping Center Los Angeles, CA FORWARD LOOKING STATEMENTS Statements included herein that state the Company s or Management s intentions, hopes,