Las Vegas shopping mall owner posts gains

Jennifer Robison

Monday, July 29, 2002 | 11:06 a.m.

Weingarten Realty Investors -- A Houston real estate investment trust with 1.8 million square feet of retail space in Las Vegas -- said this morning its profit rose in the second quarter as it acquired and developed new properties around the country.

The REIT's profit, or funds from operations, was $42.6 million, or 81 cents a share, in the second quarter. That compares to $37 million, or 77 cents per share, for the same quarter a year ago.

Weingarten's net income increased to $26.4 million, or 51 cents a share, a 26 percent increase over the same quarter in 2001, when net income was $21 million, or 43 cents a share.

Drew Alexander, the company's chief executive, said in a statement that the company's results were improved due to nationwide acquisitions and new development.

Tracy Pursell, a spokeswoman for Weingarten, also attributed the company's improved performance to higher rents the REIT has achieved on lease renewals.

Weingarten's nine local retail properties include Rainbow Plaza Shopping Center, a 410,000-square-foot property at West Charleston and Rainbow boulevards with Home Depot, JCPenney and Ultimate Electronics as anchors.

Weingarten also is continuing work on Westland Fair, the shopping center it is redeveloping at West Charleston and Decatur boulevards. The 465,000-square-foot center has a new Wal-Mart supercenter, and Lowe's Home Improvement Warehouse joined the tenant lineup when Home Depot pulled out of the location earlier this spring.

"We're very excited about that redevelopment," Pursell said. "It's going very well, and we expect (additional tenants) to open between the end of this year and throughout 2003."

Pursell said the company plans to maintain its commitment to the Las Vegas market.

"We're definitely looking to acquire and develop new properties," she said. "Las Vegas is growing so immensely right now, so we're very interested in pursuing new opportunities. But we're not going to grow for the sake of growth -- we want investments with good returns."