Westwood Announces Second Quarter 2020 Results

Westwood Announces Second Quarter 2020 Results

LOS ANGELES, CA – Westwood Financial, a leading retail real estate investment firm, announced updates today on its results for the second quarter of 2020, which included:

  • Executed 61 renewals totaling 137,000 square feet at a renewal spread of +8.5%
  • Collected 87% of billed rents during the second quarter, compared to an industry average of approximately 73% during the comparable period
  • Maintained available liquidity of approximately $54 million, including available cash and line of credit availability, and the Company remained in compliance with all corporate debt covenants as of July 31, 2020
  • Produced free cash flow after operating expenses of $8.4 million, which represents a 17% decrease from the second quarter 2019; the decrease is driven by a decrease in rental revenue as a result of the pandemic, partially offset by a 3% decrease in general and administrative expenses, a 5% decrease in interest expense, and a 50% decrease in capital expenditures
  • While the first quarter distribution, payable in May 15, 2020 was suspended, the Board of Directors has approved a distribution of $0.0525 per unit, which equates to 50% of the fourth quarter 2019 distribution; as a result of the ongoing COVID-19 impact to Westwood’s tenancy, future distributions will be subject to Board approval as the situation is monitored

Mark Bratt, Chief Executive Officer, commented, “As we approach the seventh month of the COVID-19 pandemic, I am pleased to report that Westwood produced an industry-leading cash-collection rate, spearheaded a number of initiatives to assist our tenants with the ongoing crisis, and reinstated a significant quarterly distribution that reinforces Westwood’s commitment generating attractive total shareholder returns, despite the uncertain environment.”