Westwood Financial Announces Fourth Quarter and Full Year 2022 Results

Westwood Financial Announces Fourth Quarter and Full Year 2022 Results

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

Fourth Quarter 2022 Highlights

  • Executed 19 new leases totaling 45,000 square feet and 40 renewals totaling 91,000 square feet
  • Achieved total leased percent of 96.8% vs. 94.9% same quarter end 2021 (+190 bps)
  • Achieved an inline shop leased percent of 93.8% vs. 90.5% same quarter end 2021 (+330 bps)
  • Achieved a total occupancy percent of 94.3% vs. 93.1% same quarter end 2021 (+120 bps)
  • Comparable new rent spreads were 2.7%; renewal rent spreads were 12.0%
  • Acquired a 225,000-square-foot community center in Westminster, Colorado

Full-Year 2022 Highlights

  • Same Store NOI and EBITDA increased by 5.6% and 6.0%, respectively
  • Comparable new rent spreads were +6.4%; renewal rent spreads were +8.7%
  • Executed 92 new leases totaling 246,000 square feet, and 177 renewals totaling 743,000 square feet for a total execution of 269 deals comprising 989,000 square feet
  • Acquired three investment properties: Tobesofkee Crossing, Village at Peachtree Corners, and The Shops at Walnut Creek, for a total of $92 million
  • Raised $100 million in financing commitments, increasing the Company’s total credit facility commitments to $255 million
  • Successfully navigated a challenging interest rate environment by swapping $115 million of variable-rate debt for fixed-rate debt at a weighted average rate of 4.6%

“The fourth quarter was very active for Westwood from a transactional and leasing perspective, both strongly accretive to the overall portfolio. Highlighted by the acquisition of The Shops at Walnut Creek, which is the dominant retail center along the Denver-Boulder turnpike, and the lease-up of our first successful investment property launch on the CrowdStreet platform named Village at Peachtree Corners, Westwood continues to provide investors with further portfolio diversification while driving strong returns,” stated Mark Bratt, Chief Executive Officer. “As the real estate landscape continues to evolve from both a capital raising and deployment standpoint, we must continue to allocate funds for each of Westwood’s investments that are synergistic with our overall strategies but also continue to be opportunistic, lucrative, and consistent with investor expectations,” said Mr. Bratt.

Despite challenging market conditions, Westwood has continued acquiring new properties and securing long-term leases, strengthening the portfolio’s occupancy and leasing percentage growth. “The equity raise for the acquisition of Village at Peachtree Corners was a creative way for Westwood to access capital. From acquisition to year-end 2022, the Village at Peachtree Corners property grew from just over 70% occupied to 94.8% occupied (and 100% leased). From an overall portfolio perspective, 2022 was one of the strongest years in the company’s history,” commented Bratt. Total NOI and EBITA hit record highs of $94.2 million and $81.2 million, respectively. In addition, the overall portfolio was a record high 96.8% leased, showing the strength, quality, and resiliency of Westwood’s investment properties despite tumultuous market conditions.

Upon quarter-end completion, Westwood also provided a tender offer to investors in its closed-end fund, the second of its kind since its inception in 2016. “The tender not only provided investors with an exit, asset liquidity, and a total return of 28%+ but was a strategic allocation of company funds used to drive shareholder value further,” said Mr. Bratt.

About Westwood Financial
Westwood Financial owns, manages, and operates 127 high-quality shopping centers in top U.S. metropolitan markets, including Atlanta, Charlotte, Dallas, Denver, Los Angeles, Orlando, Phoenix, and Raleigh. The centers are primarily anchored by top-tier grocers and leading service and experiential-based operators. Established in 1970, Westwood Financial is headquartered in Los Angeles, with regional offices in Atlanta, Dallas, and Phoenix.