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

Transcription

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

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 Richmond Square Houston, TX 3

4 Company Overview As of 3/31/17 Transformed portfolio delivering sector leading results 75% Supermarket Anchored averaging $630 PSF Strong Balance Sheet with well laddered debt maturities 15.00% 10.00% Common Equity $4.3 Billion 65% Total Market Capitalization (based on March 31, 2017 closing stock price of $33.39) Total Return % 12.59% $6.7 Billion 10.32% Debt $2.3 Billion 35% ~ 4% Dividend Yield $1.54 annually (as of 3/31/17) 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 3.4% Occupancy increased to 95% Average Base Rent increased 10% Strong Balance Sheet Metrics positioned for growth opportunities Net Debt to EBITDA of 5.9x vs 7.8x in 2011 Debt to Market Cap of 34.9% vs 53.1% in 2011 Well laddered maturity schedule Company Overview 5

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

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

9 Top 12 Centers Comprise 20% of Total Portfolio 1. The Palms at Town & Country Miami, FL 2. River Oaks SC Houston, TX 3. Market at Town Center Houston, TX ABR: $22.84 PSF 3 Mile Population: 171,702 Major Tenants: Publix, Kohl s, Nordstrom Rack, Dick s, Marshalls, CVS, Total Wines ABR: $38.16 PSF AHHI: $144,908 Major Tenants: Kroger, Barnes & Noble, Gap, Americas, Sur La Table, Talbots ABR: $21.24 PSF AHHI: $139,542 Major Tenants: Nordstrom Rack, Saks Off 5th, HomeGoods, Marshalls, Ross Dress For Less 4. Westminster Center Los Angeles, CA 5. Colonial Plaza Orlando, FL Sunset Strip Los Angeles, CA ABR: $19.27 PSF 3 Mile Population: 210,655 Major Tenants: Home Depot, Albertsons, Ross Dress For Less, Petco, Rite Aid ABR: $14.97 PSF % College Grads: 51% Major Tenants: Ross Dress For Less, Marshalls, Old Navy, Floor & Décor, Hobby Lobby, Staples, Stein Mart, Barnes & Noble, Petco ABR: $42.03 PSF AHHI: $114,832 Major Tenants: Trader Joe s, CVS, Crunch Fitness, CB2, Sundance Cinemas High Quality Portfolio 9

10 Top 12 Centers Comprise 20% of Total Portfolio 7. Village Plaza at Bunker Hill Houston, TX 8. Centre at Post Oak Houston, TX 9. Best In The West Las Vegas, NV ABR: $24.63 PSF AHHI: $127,045 Major Tenants: HEB, Academy, Toys R Us, Sam Moon, PetSmart, Nordstrom Rack 10. Chino Hills Los Angeles, CA ABR: $36.42 PSF AHHI: $134,918 Major Tenants: Marshalls, Nordstrom Rack, Old Navy, Arhaus, Grand Lux Café, Morton s 11. Largo Mall Largo, FL ABR: $17.03 PSF 3 Mile Population: 195,050 Major Tenants: TJ Maxx, Best Buy, Bed Bath & Beyond, PetSmart, DSW, Stein Mart, Old Navy, Babies R Us 12. Mueller Regional Retail Ctr Austin, TX ABR: $22.00 PSF AHHI: $102,750 Major Tenants: Smart & Final, Rite Aid, Dollar Tree, 24 Hour Fitness ABR: $17.29 PSF 3 Mile Population: 112,842 Major Tenants: Target, PetSmart, Bealls, Marshalls, Bed Bath & Beyond, Michaels, Regal Theater ABR: $16.59 PSF % College Grads: 49% Major Tenants: Marshalls, Home Depot, Best Buy, PetSmart, Old Navy, Bed Bath & Beyond 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% 0.2% 0.4% 2.7% 2.8% 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% 93.7% -5.0% $20.00 $18.00 $16.00 $14.00 $ % Q1 17 ABR PSF $16.92 $16.24 $15.66 $15.14 $14.51 $13.16 $13.31 $13.60 $17.93 $ Q % 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% Q % 2.0% Rent Growth 4.2% 6.3% 10.1% 12.5% 13.1% 9.5% -0.4% -2.5% Q1'17 WRI Peer Average Note: Q1 17 peer information to be reported at a later date. *SPNOI excludes redevelopment High Quality Portfolio 11

12 Small Shop Leasing Apparel 15 Leases Service 35 Leases Other 87 Leases 27% 4% 11% 15% Beauty 49 Leases Full Service Restaurant 42 Leases 13% 12% Quick Serve 40 Leases 18% Health 58 Leases Note: Number of leases for the 12 months ended 3/31/2017. High Quality Portfolio 12

13 Strong Tenant Base WRI Top Ten Tenants (% of Total Base Minimum Rent) 80% 2.7% 70% 2.6% 2.0% 1.6% 1.5% 1.4% 1.4% 1.2% 1.2% 60% 50% 40% 30% 20% 10% 66% 76% Transformation means stronger credit quality 34% 24% TOTAL 1.1% 16.7% 0% National/Regional Local High Quality Portfolio 13

14 Highly Productive Grocers Grocers Sales Average $630 PSF 75% of Our ABR is in Shopping Centers with a Grocer Component Portfolio Segmentation 75% Grocer Types % of ABR Sales PSF Grocery Anchored 35% Power and Specialty 25% Grocery with Another Anchor 40% $622 PSF $644 PSF National 43% $599 Regional 23% $687 Specialty 8% $686 Independent 1% $313 Total 75% $630 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 14

15 Internet Resistant Internet Resistant 80% Potential Risk 15% -Quick Service and Full Service Restaurants 18% -Services 16% -Supermarkets 12% -Recreation/Entertainment 9% -General Merchandise and Other Misc. Retail 7% -Discount Apparel 6% -Home Furnishings 5% -Medical 4% 80% 5% 15% -Some Apparel 5% -Beauty Supplies 2% -Sporting Goods 2% -Footwear 2% -Drugstores 1% -Liquor/Tobacco 1% -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 15

16 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 16

17 High Quality Houston Portfolio Centre at Post Oak Houston, TX 17

18 WRI in Houston - Transformed Portfolio As of 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) $117,000 WRI Key Centers have higher AHHI and % college grads than the Houston CBSA Houston Centers primarily service Superzips Population (a) 142,000 Note: Demographics for 3 mile trade area (a) Weighted by ABR LEGEND Super Zip WRI Center Sold in whole or part 18

19 Houston Summary The Houston economy has slowed, but will not significantly impact WRI WRI s transformation efforts in Houston have created a fortress portfolio resistant to market changes WRI s properties are located in dense, high income areas of the city primarily servicing superzips Houston accounts for only 16% of WRI s total ABR with average HHI of $117,000 Lack of retail completions in the last five years combined with population growth has created pent up demand for high quality, infill properties WRI s same property occupancy in Houston is over 95% and rent growth for first quarter 2017 is 13.3% Houston s economy is very diversified with healthcare, exports and energy being the largest employee sectors The Medical Center is the largest healthcare complex in the world employing 106,000 The Port of Houston has led the nation in exports the last three years and is expanding in anticipation of increased tonnage with the opening of the Panama Canal Energy employment accounts for 38% of local GDP vs 75% in the 1980s Houston Gulf Area active investment in chemical plant expansions of ~$50 billion (1) (1) Dr. Gilmer, UH Institute for Regional Forecasting How Do Oil Prices Impact WRI? 19

20 Top 6 Houston Centers Comprise 50% of Houston Portfolio 1. River Oaks SC Houston, TX 2. Market at Town Center Houston, TX 3. Village Plaza at Bunker Hill Houston, TX Population: 170,725 AHHI: $144,908 Major Tenants: Kroger, Barnes & Noble, Gap, Americas, Sur La Table, Talbots 4. Centre at Post Oak Houston, TX Population: 87,817 AHHI: $139,542 Major Tenants: Nordstrom Rack, Saks Off 5th, HomeGoods, Marshalls, Ross Dress For Less 5. Westchase Center Houston, TX Population: 135,651 AHHI: $127,045 Major Tenants: HEB, Academy, Toys R Us, PetSmart, Nordstrom Rack 6. Richmond Square Houston, TX Population: 188,788 AHHI: $134,918 Major Tenants: Marshalls, Nordstrom Rack, Old Navy, Arhaus, Grand Lux Café, Morton s Population: 197,408 % College Grads: 45% Major Tenants: Whole Foods, Target, Ross Dress For Less, Palais Royal, Petco Population: 206,784 AHHI: $133,751 Major Tenants: Best Buy, Cost Plus How Do Oil Prices Impact WRI? 20

21 Q Retail Completions (000 s SF) Population (000s) Geographically Diversified Portfolio % of ABR in Houston Healthy Houston Growth 80% 70% 60% 50% 40% 30% 20% 10% 0% 71% Exposure to Houston is a small part of our overall portfolio 16.2% 1985 Q1 17 ABR $7.30 PSF ABR $19.50 PSF 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Added over 800,000 people since ,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 Net Retail Completions (000's SF) Population (000s) Total WRI Occupancy Never Below 90% 96% 94% 92% 90% 88% The per capita space in the trade area around our centers has declined over the past 5 years 86% 84% *2016 Census estimate population How Do Oil Prices Impact WRI? 21

22 Strategic Growth Hilltop Village Center Alexandria, VA 22

23 Strategic Growth (SF in thousands) Acquisitions Developments Large Re-Developments 2200 Westlake Seattle, WA 87 SF (retail) 100% Leased $103,785 AHHI / 226,220 pop. The Parks at Walter Reed Washington, DC 250 SF $112,087 AHHI / 277,889 pop. Return on Investment ~7-8% Decatur 215 Las Vegas, NV 346 SF 100% Leased $79,039 AHHI / 137,244 pop. The Whittaker Seattle, WA 63 SF (retail) 83% Leased $98,131 AHHI / 85,170 pop. Return on Investment ~7% Columbia Pike Arlington, VA 65 SF (retail) $121,121 AHHI / 300,919 pop Return on Investment ~6% Gateway Alexandria Alexandria, VA 100 SF (retail) $109,746 AHHI / 288,679 pop Return on Investment ~5% Deerfield Deerfield Beach, FL 405 SF 91% Leased $69,595 AHHI / 126,620 pop. Scottsdale Waterfront Scottsdale, AZ 93 SF 78% Leased $91,253 AHHI / 91,926 pop. River Oaks Houston, TX 30 story mixed-use tower with 10 SF (retail) $144,908 AHHI / 170,725 pop Sunset Point 19 Clearwater, FL 277 SF 82% Leased $61,682 AHHI / 104,145 pop. The Palms at Town & Country Miami, FL 658 SF 94% Leased $75,440 AHHI / 171,702 pop. Strategic Growth 23

24 Acquisition Spotlight The Palms at Town & Country Miami, FL Purchase Price: $285M Purchase Date: 7/27/16 The Palms at Town & Country features best-in-class operators including Publix, Kohl s, Nordstrom Rack, Dick s Sporting Goods, Marshalls, CVS, and Total Wines. National and regional retailers comprise 87% of the revenue of the center. The shopping center serves the dense and affluent communities of Kendall and West Kendall with 171,000 people and 59,000 households in a 3-mile trade area. Population: 3 Mi: 171,702 5 Mi: 479,778 Average Household Income: 3 Mi: $75,440 5 Mi: $76,868 Property Size: 657,661 SF Strategic Growth 24

25 Acquisition Spotlight Scottsdale Waterfront Scottsdale, AZ Purchase Price: $52M Purchase Date: 8/17/16 Scottsdale Waterfront is one of Arizona s most unique and well-located mixeduse developments including retail, luxury condominiums, and Class A office space. The development is adjacent to Fashion Square Mall and in the same retail node with Old Town Scottsdale encompassing over 3.5 million SF. Macerich recently announced the renovation of the luxury wing and addition of residences, class A office space and a new hotel. Located at one of the most significant, heavily trafficked retail intersections in the state of Arizona, the retail component offers a strong mix of fast casual and full service restaurants catering to the affluent consumer base, surrounding neighborhoods, excellent daytime population and area attractions have nearly 8.9-million visitors a year. Population: 3 Mi: 91,926 5 Mi: 195,940 Average Household Income: 3 Mi: $91,253 5 Mi: $87,584 Property Size: 93,334 SF Strategic Growth 25

26 Acquisition Spotlight Deerfield Deerfield Beach, FL Purchase Price: $92.8M Purchase Date: 5/5/16 Deerfield is a community power center anchored by Publix, T.J. Maxx, and Marshalls. Located at a dominant retail intersection between IH-95 and the Florida turnpike, the property serves dense and affluent communities in northern Broward County and southern Palm Beach County, including Deerfield Beach, Boca Raton, and Coconut Creek. N Population: 3 Mi: 126,620 5 Mi: 326,221 Average Household Income: 3 Mi: $69,595 5 Mi: $76,438 Property Size: 404,944 SF Strategic Growth 26

27 Acquisition Spotlight 2200 Westlake Seattle, WA WRI Purchase Price: $43.5M Purchase Date: 2/29/ Westlake is a mixed-use, vertically-integrated property anchored by a Whole Foods Market. The complex also contains an income-producing parking garage, an 11-story 153-room five-star Pan Pacific hotel, and residential condos. The property is located in the high-growth neighborhood of South Lake Union in Seattle and will benefit from both geographic and demographic barriers to entry. The area is home to Amazon and its existing 4 million square feet of office space and one block away from the multi-million square foot headquarters campus now under construction. Population: 3 Mi: 226,220 5 Mi: 440,499 Average Household Income: 3 Mi: $103,785 5 Mi: $106,247 Property Size: 87,014 SF Strategic Growth 27

28 Creating Value through New / Re Development In thousands Properties Currently Under Development Cost Incurred - YTD 2017 Cost Incurred - To - Date Estimated Final The Whittaker 24,594 24,833 30,784 Gateway Alexandria 5,566 51, ,193 Columbia Pike 196 1, ,380 Est Final ROI% Total New Development $30,356 $77,674 $347, % Pipeline Schedule Walter Reed Washington, DC Strategic Growth 28

29 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% Active $5,924 $33,835 $224, % Completed $647 $31,536 $31, % Total $6,571 $65,371 $256, % 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 35 for more information. $500 $400 $300 $200 $100 Projected Investment ($MM) New / Re Developments $ Future Total New Dev $13 $42 $27 $68 Redevelopment $16 $19 $23 $32 Strategic Growth 29

30 New Development The Whittaker - Seattle, WA Population 3 Mi: 85,170 Investment: $30.8M Avg HH Income 3 Mi: $98,131 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 30

31 New Development Spotlight Gateway Alexandria Alexandria, VA Est. Investment: $181M Total Project WRI will be the lead developer of this mixed-used development in Alexandria, VA. This project will have approximately 282 residential units, 100,000 SF of retail anchored by an upscale Harris Teeter grocery store, and office pad. The property is served by local and regional bus lines and a new rapid transit bus line will open with the project. Population: 3 Mi: 288,679 5 Mi: 551,853 Average Household Income: 3 Mi: $109,746 5 Mi: $126,858 Property Size: 100,000 SF (retail) Strategic Growth 31

32 New Development Spotlight (continued) Gateway Alexandria Alexandria, VA Over 62% of the 3-mile population has a college degree. Gateway Alexandria provides easy access to Alexandria/Arlington as well as the Washington DC area to the north and Springfield/Fort Belvoir areas to the south. Strategic Growth 32

33 New Development Spotlight Columbia Pike - Arlington, VA Population 3 Mi: 300,919 Avg HH Income 3 Mi: $121,121 Investment: $135M Return on Investment: ~6% Property Size: 65,000 SF (retail) WRI executed a partnership agreement with a prominent residential developer for the development of Columbia Pike, a premier, mixed- use project in Arlington, Virginia. Project includes 365 multi-family units and 72,000 square feet of retail anchored by a 50,000 square foot Harris Teeter grocery store. Harris Teeter projected store opening late Expect to commence development in the Second Quarter of 2017 Strategic Growth 33

34 Potential New Development The Parks at Walter Reed- Washington, DC Population 3 Mi: 277,889 Avg HH Income 3 Mi: $112,087 Property Size: 250,000 SF Investment: $80-$100M Return on Investment: ~7-8% WRI chosen by the District of Columbia as part of a team to redevelop the former Walter Reed Army Medical Center At completion, the project will consist of three million square feet comprised of 2,000 residential units, 250,000 SF of retail, 190,000 SF of office, 150,000 SF of hospitality and 122,000 SF of arts Strategic Growth 34

35 Potential 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: 170,725 5 Mi: 452,275 Average Household Income: 3 Mi: $144,908 5 Mi: $123,814 Property Size: 10,000 SF (retail) Strategic Growth 35

36 Creating Value Through Redevelopment Sunset Point 19 - Clearwater, FL Incremental Investment: $16.7M ROI: ~ 12% The redevelopment consists of re-tenanting a vacant grocer with Bed Bath & Beyond and adding Five Below, Cost Plus, Kirkland s, Carters and 20,000 square feet of shop space in outparcel buildings. Located at the SWC of Sunset Point Rd and US 19, one of Clearwater's busiest intersections, Sunset Point 19 is the shopping destination for an expansive retail trade area. Consumers are attracted by the center s exciting mix of big box retailers including Bed Bath & Beyond, Old Navy, Barnes & Noble, and Staples. Strategic Growth 36

37 Transformed Portfolio City Center Englewood Denver, CO 37

38 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 Quality Properties that demand higher NAV per dollar of NOI Transformed Portfolio 38

39 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 39

40 Strong Financial Position 8000 Sunset Strip Shopping Center Los Angeles, CA 40

41 Transformed Financial Position 7.5x 7.0x 6.5x 6.0x 5.5x 5.0x Net Debt to EBITDA Q1 17 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% 34.9% Q1 17 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 Q % 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 18.5% 14.3% 12.8% 9.6% 8.3% 8.0% Q1 17 *Remaining Series F Preferreds were redeemed May 2015 Strong Financial Position 41

42 Laddered Debt Maturities In Millions, at pro-rata As of 3/31/17 Weighted Average Interest Rate = 3.98% $350 $300 $250 $293 $309 $307 $257 $304 $278 $200 $ $100 $50 $0 $ $ $ $ $14 9 $83 - $ 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 42

43 Vision and Guidance The Whittaker Seattle, WA 43

44 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 44

45 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 45

46 Guidance As of 3/31/ Guidance Original Revised Net income attributable to common shareholders $ $1.22 $ $1.00 Depreciation and amortization Impairment of operating properties and real estate equity investments (Gain) on sale of property and interests in real estate equity investments (0.08) (0.10) (Benefit) provision for income taxes (0.01) (0.03) NAREIT FFO - Basic Income attributable to operating partnership units NAREIT FFO Per Common Share - Diluted $ $2.42 $ $2.39 Other impairment loss (Benefit) provision for income taxes (0.01) (0.01) Other Core FFO Per Common Share - Diluted $ $2.43 $ $2.43 Portfolio Activity Acquisitions $125 - $225 M $125 - $225 M Re / New Development $135 - $235 M $135 - $235 M Dispositions $125 - $225 M $125 - $225 M Operating Information Same Property Net Operating Income with redevelopments +2.5% to +3.5% +2.5% to +3.5% Same Property Net Operating Income without redevelopments +2.0% to +3.0% +2.0% to +3.0% Denotes change to guidance Vision and Guidance 46

47 Relative Peer Multiples Stock Multiple FRT REG ROIC KIM WRI RPAI DDR BRX Core FFO* Stock Price (as of 4/19/17) $5.88 $3.47 $1.12 $1.52 $2.40 $1.03 $1.14 $2.09 $ $68.49 $21.87 $22.69 $35.27 $14.67 $12.85 $21.84 *Midpoint of 2017 Guidance Vision and Guidance

48 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 48

49 Images from The Palms at Town & Country, Miami, FL