Westwood Financial Announces Fourth Quarter and Full Year 2023 Results

Westwood Financial Announces Fourth Quarter and Full Year 2023 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, 2023, which included:

Fourth Quarter 2023 Highlights

  • Executed 17 new leases totaling 26,000 square feet and 43 renewals totaling 91,000 square feet
  • Achieved total leased percent of 96.9% vs. 96.8% same quarter end 2022 (+10 bps)
  • Achieved an inline shop leased percent of 94.8% vs. 93.8% same quarter end 2022 (+100 bps)
  • Achieved a total occupancy percent of 93.3% vs. 94.3% same quarter end 2022 (-100 bps)
  • Comparable new rent spreads were 6.9%; renewal rent spreads were 13.1%
  • Sold one property in Houston, TX for $7.7 million
  • Paid off two maturing CMBS loans totaling $15.9 million using unsecured credit facility proceeds

Full-Year 2023 Highlights

  • Increased Same-Store NOI year-over-year by 4.0%
  • Comparable new rent spreads were +4.0%; renewal rent spreads were +9.0%
  • Executed 75 new leases totaling 240,000 square feet, and 175 renewals totaling 700,000 square feet for a total execution of 250 deals comprising 940,000 square feet
  • Acquired one investment property and sold four properties:
    • Acquired Northview Plaza in Dallas, TX for $22.4 million
    • Sold Ahwatukee Mercado in Ahwatukee, AZ, Yosemite Crossing in Greenwood Village, CO, Sycamore Plaza in Albuquerque, NM, and Lakeside Town Center in Houston, TX for a total of $40.6 million
  • Paid off ten maturing CMBS loans totaling $77.4 million using credit facility proceeds

“Westwood rounded off the end of 2023 with another strong quarter of operating results. The Company continues to advantageously transact on new deals and sell properties no longer strategic to the overall portfolio, while delivering consistent cash flow generation to the bottom line. This quarter was highlighted by the sale of a shadow-anchored neighborhood strip center in Houston, Texas and the expansion of our robust pipeline. Westwood continues to be very active in capital markets and transact on deals that ensure profitability, consistency and security to our investors for the long term,” stated Mark Bratt, Chief Executive Officer. “The Company heads into 2024 with a cautious, yet optimistic approach as the real estate landscape continues to evolve and provide unique opportunities to both deploy and recoup capital, synergistic to the Company’s overall strategic objectives. Our efforts must remain diligent and focused on ensuring each placement of capital fits the investment profile of each of our offerings,” said Mr. Bratt. Overall, the Company transacted on five properties in 2023 comprising of one acquisition and four dispositions, including the aforementioned deal.

The Company also continued its success from both an operational and financial perspective for the full-year, 2023. Total Portfolio Leased and Total NOI metrics achieved all-time highs at 96.9% and $102.8 Million, respectively, emphasizing the quality and efficiency of the portfolio. “I am very pleased to see the Company navigate through challenging market conditions and set new levels of success relating to core operational and financial metrics. In addition, as the Company continues to grow, we must continue emphasizing the importance of fortifying existing and fostering new tenant relationships,” commented Mr. Bratt.

From an internal operations perspective and coinciding with the previous announcement of Westwood’s all-new investor portal, the Company has also made deeper improvements in security for investors in delivering highly sensitive personal information and distribution payments. The implementation of enhanced data encryption as well as multi-factor authenticators have enhanced our investor experience in safely and securely acquiring and disseminating information. “Apart from the performance of Westwood as an investment, it is our responsibility to continue operating the Company at the highest standards of digital safety and security in order to ensure our investors’ personal information remains secure and uncompromised,” concluded Mr. Bratt. Westwood aims to continue implementing periodic improvements to its security and processes for both the benefit of the company and its investor base.

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. More information is available at westfin.com.