Weingarten Realty Investors (WRI)
A real estate investment trust. The Company's business include leasing space to tenants in the shopping and industrial centers and also manage centers for joint ventures.
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Downgraded to Sell by UBS.
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Offering dilutive shares thanks to the unsavory sponsorship of Wells/Wachovia, whose analyst changed his rating the day before Wells credit acct benefited from the stock issuance.
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13 % dividend yield is solid; a good, conservative REIT oriented around neighborhood shooping centers with grocery store anchors.
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well run company
however, retail will get ugly and not priced into this stock yet
also have a little more leverage than you'd like
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Well run, solid company. Real estate and the economy will start to bounce back over the next 18 mos. WRI will do well again as retail sales start to rise.
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This stock violates my large cap rule. It's a growing small cap that pays a great and consistent dividend in a economically resilient part of the nation.
I have not done a formal valuation for these stocks. They are picked only on the feeling that "surely we can't go anywhere but up from here". They are all trading near their 52 week lows and are large market capitalization stocks that pay consistent dividends. I'm testing my guts with these.
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Weingarten was just downgraded by UBS from neutral to sell. It makes sense given the current economic climate. Go to any mall and you will find more and more businesses closing shop, leaving empty mall space. This trend in the mall sector will likely continue for awhile, so I would expect to see WRI's financials erode over the next year or so. However, in the long-term it is a good solid investment and I will likely revisit this stock in the future and re-rate it as an outperform.
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The company has a dividend yield of over 6% and just announced earnings for 2007 - FFO grew 8% and they expect FFO to grow between 5% - 7% in 2008. In addition they increased their dividend by 6.1% to $2.10/share (23 straight years of dividend increases) and are buying back shares. The payout ratio is less than 1 and they have good interest coverage. Until the mortgage business gets straightened out they probably won't go anywhere, but when they're paying such a good dividend I'm willing to wait.
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Long term yes. Beaten up and battered but long term money is safe buying at $31 and a 52 week low. As recession proof as a retail REIT can get with major holdings in grocery anchored neighborhood and community strip centers and power centers.
Not sexy properties but solid performers and a conservative approach to outlast the downturns. PE of 22 and solid increasing dividends year over year. Safe for a long term holder and at this discounted rate will outperform the market over 5+ years.
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commercial real estate
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Weingarten Realty is a solid performer and one of the Bluest of Blue REITs on the REIT discussion board. They have increased their dividend for 22 consecutive years, starting with the companies inception in 1985. In 2006 FFO increased from $2.72 to $2.83 while the dividend increased to $1.86 from $1.76 per share. In quarter one of 2007 they increased the dividend again by 6.5% to $1.98 per share. They have positioned themselves for continued growth in the future. This a solid REIT.
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There is a WRI property in my town. There are a lot of top name retailers in this shopping center and it has never had an empty storefront in the 8 years I've lived here. Residential real estate may be getting hammered right now, but commercial real estate is still going strong.
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The best real estate strip center managers. They know when to buy in and when to get out of retail markets.

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