Westwood Financial Announces First Quarter 2022 Results

Westwood Financial Announces First Quarter 2022 Results

LOS ANGELES, CA – Westwood Financial, a leading retail real estate investment firm, announced updates today on its financial and operational results for the three months ended March 31, 2022, which included:

  • Same-Store 2022 vs 2021 GAAP Revenue and NOI was up +4.4% and +5.9%, respectively
  • Executed 27 new leases totaling 85,000 square feet and 42 renewals totaling 302,000 square feet
  • Achieved total leased percent of 95.5% vs 93.3% same quarter end 2021 (+220 bps)
  • Achieved inline shop leased percent of 91.7% vs 87.9% same quarter end 2021 (+380 bps)
  • Achieved total occupancy percent of 93.4% vs 91.5% same quarter end 2021 (+190 bps)
  • Closed a 13 asset, $19.6M loan through a single tenant net lease JV, Hilgard STNL Fund, at 3.95% fixed for 10-years
  • Swapped existing 5-year $40M term loan from floating to fixed at 3.45%

Mark Bratt, Chief Executive Officer, commented, “We began 2022 with another excellent quarter, achieving strong leasing and financing results, growing our NOI 5.9%. Our leasing team had another superb quarter as leasing demand remains robust. We closed a $19.6M loan through our Hilgard Single Tenant Net Lease Fund. The financing is critical for Hilgard’s future success as we continue to expand this new fund.” While rising interest rates caused concern for the real estate industry, Mr. Bratt stated that “Westwood is well insulated in this environment given that the vast majority of the Company’s debt remains fixed at 4% over the next 4 years. Furthermore, we strategically swapped our $40M term loan from floating to fixed in early March which provided protection against rising rates.”

Westwood stayed active on transactions, closing two centers for $38M in the first quarter (one Publix anchored center in Macon, and one Lidl anchored center in Atlanta). Additionally, the Company closed two single tenant net lease properties for Hilgard (Tractor Supply, O’Reilly) and put another three properties under contract.

Village at Peachtree Corners in Atlanta

Mr. Bratt continued, “Despite macro-economic pressures, Westwood’s grocery-anchored portfolio remains resilient. It is notable that e-commerce penetration rate on all retail sales peaked at 16.4% in 2Q20 and has since declined to 14.3% in 1Q22 as brick-and-mortar sales growth has surprisingly exceeded online sales growth for the past four quarters.”

About Westwood Financial
Westwood Financial owns / manages and operates over 119 high-quality shopping centers located in top U.S. metropolitan markets including Atlanta, Charlotte, Dallas, Denver, Jacksonville, Los Angeles, Orlando, Phoenix, and Raleigh. The centers are primarily anchored by top-tier grocers as well as leading service and experiential-based operators. Established in 1970, Westwood Financial is headquartered in Los Angeles, with regional offices in Dallas, Atlanta, and Scottsdale.