Q3 2019 Earnings Call
Good morning, and welcome to the Weingarten Realty Inc. third quarter 2018 earnings call my name spread and I'll be your operator for today.
This time all participants are in listen only mode. Later, we will conduct a question answer session. During the question answer session. If he has a question. Please press star one your telephone keypad.
Please note this conference is being recorded.
I'll turn it over to Michelle Wiggs Michel you may begin.
Good morning, and welcome to our third quarter 2019 conference call. Joining me today, It's drew Alexander Johnny Hendrix Deep Richter, Jeff Shaffer as a reminder, certain statements made during the course of this call are forward looking statements within the meaning of the private Securities Litigation Reform Act. These statements are based on management's current expectations.
And are subject to win certainly and changes in circumstances actual results could differ materially from those projected in such forward looking statements due to a variety of factors more information about these factors is contained in the company's FCC filing.
Also during this conference call management May make reference a certain non-GAAP financial measures such as funds from operations are at that though but coronary which we believe help analysts and investors to better understand Weingarten operating result reconciliation to these non-GAAP financial measures is available in our supplemental information package located under the Investor Relations tab.
Website, I will now turn the call ever to drew Alexander Thank you Michelle and thanks to all of you for joining us I'm pleased to announce a great quarter.
Our results show the resiliency of neighborhood and community shopping centers with grocers and merchants selling basic goods and services further the quality improvements we've made in our portfolio by selling weaker assets and adding stronger assets has proven beneficial.
Coupling this transform portfolio with a significantly reduced volume of dispositions plan for 2020, a nice pipeline of potential acquisitions revenue from our new developments beginning to come online and a best in class balance sheet, we're extremely bullish about the future.
Well the acquisition market remains highly competitive during the quarter, we were able to purchase in partnership with Bouwinvest, a whole foods anchored center in a very fluid part of Atlanta. The company share of acquisitions was 28 million in Q3.
Subsequent to quarter end, we purchased Hillshire village in Houston, bringing acquisitions to date in 2019 to 113 million Johnny will talk more about this fine asset in a minute. We continue to see other quality opportunities, which prompted us to increase our acquisition guidance for 2019.
Asset dispositions, we sold 162 million a property in the third quarter, the largest of which was the sale of just French marketplace, and Apple Valley, California as discussed last quarter. The sale of this 89 million dollar power center tertiary market, what's the significant de risking event for the company that further step.
Since our portfolio.
Given our year to date dispositions of 362 million and our current pipeline, we will likely finished the year at the upper end of our disposition guidance.
As I said last quarter, we plan for dispositions to return to more normalized portfolio management for 2020, which we don't see being above 150 million.
Moving on to our new development activities at the Winterkorn West Seattle, Washington whole Foods opened earlier this month at Central Arlington are mixed use project in the DC market Harris Teeter opened last week. We also have some residential units occupied here and are about 30% complete leasing or 306.
86 residential units with rents running above pro forma.
At West Alex also near DC.
We are about to begin residential leasing and expect move ins to begin around here.
Harris Teeter supermarket plans to open at West Alex and 2021 [laughter] noted these projects benefit from a good supermarket anchored close proximity to Amazon HQ too.
Vibrant North, Virginia, Northern Virginia market and strong barriers to new construction.
Driscoll at River Oaks is progressing nicely construction is currently at a plan and we should have residential units available in mid 2020, we have many other redevelopment projects in the pipeline that will provide excellent returns on invested capital and we continue to work those with great focus a great quarter, Steve the financials.
Thanks drew our balance sheet remains amongst the strongest in our sector at quarter end net debt to EBITDA was a strong 4.97 times and debt to total market capitalization was 331.4% supported by well Laddered maturity schedule that has no significant maturities until 2022.
Yes.
Our current leverage position allows us to fund, our new developments Redevelopments and acquisition programs, while still maintaining capacity to pursue future growth, even with our reduced disposal disposition activity going forward.
This great liquidity and our strong credit metrics provide significant long term stability for our shareholders and the flexibility to pursue opportunities.
Core Epo for the quarter was 53 cents per share compared to 58 cents per share for the same quarter of the prior year.
The decrease is primarily due to disposition activity, which cost us a three cents per share when compared to last year and the two cents per share of indirect leasing costs, we expensed under the new leasing standard in 2019, but not in 2018.
These decreases were partially offset by increases in same property you know why primarily driven by increased base minimum rent an incremental income from our new developments and Redevelopments. A reconciliation of net income to core FFO is included in our press release.
As to guidance, we're increasing our core FFO guidance to a range of 2007 to $2, an 11 cents per share and we're increasing our acquisition guidance to the <unk> to a range of 175 to 275 million.
All the details of our of our guidance are included on page 10 of our supplemental Johnny.
Great Steve.
We're pleased with a solid results our properties and associates produced during the quarter leasing remains strong.
Bankruptcies are well below levels, we expected shop occupancy rose 30 basis points from last quarter to 90.7% same property NOI with redevelopment grew almost 3% with base minimum rent growth at 3.1%.
New lease rent growth was 15% our redevelopment program continues to deliver strong risk adjusted returns and we've acquired some great properties that will enhance our portfolio quality and grow our EFO.
Overall levels of tenant fallout in our portfolio have remained reasonable about the same for the last couple of years.
Weingarten has the most diversified tenant line up in our peer group with limited exposure to any one retailer.
I do have a couple of bankruptcy updates.
Just after our call last quarter Avenue filed for liquidation they quickly rejected older leases and now closed older stores.
We had four representing only $350000 of annual base minimum rent.
We should be able to lease the space is quickly and get them generating rent again over the next several quarters.
We have one forever 21 store is it palms at town and country in Florida.
The store produces high volume and has a modest occupancy costs, they've actually paid significant percentage rent over the last several years.
We expect this lease will be affirmed.
Leasing production was good during the quarter, we executed 78, new leases at 108 renewals for a total of $13.7 million in annual base minimum rent.
Demand for space continues to come from several categories supermarkets discount clothing restaurants, but quick service and full service medical services and yes.
Occupancy has remained stable over the last year, we ended the quarter with occupancy of 94.7%, that's slightly higher than a year ago and a little below the 94.8% from last quarter.
We're excited to grow the shop occupancy to 90.7%. This is the highest level we achieved in at least 10 years. We feel we can continue to improve this metric in future quarters.
The spread between leased and commenced grew to a robust 230 basis points at quarter end.
That represents 500000 square feet of space, we expect to commence about half that space, representing $6 million, an annual base minimum rent over the next six months.
This is great fuel for our same property NOI next year.
Same property NOI remains very good at 2.9% with redevelopment for the quarter and we're comfortable with our guidance range of 2.5% to 3.5% for the year.
Our redevelopment program continues to generate strong risk adjusted returns we have 10 properties under construction, you'll see that we completed two properties are sprouts anchored winter Park corners, and a multitenant building at Roswell corners. We also added a multitenant building flamingo pipes.
We budgeted to spend $71 million on the 10 properties and expect a return on investment on our new investment around 10%.
Most of these redevelopments are outparcel buildings between five and 10000 square feet, so really not much risk.
The Good example is at 12000 square foot building, we're adding at Wellington shopping center.
We will at least most of the building before we start construction and it will have a clear understanding of our costs.
As Jerry mentioned, we found some great properties to by year to date, we've invested $113 million and we have $170 million under contract.
There's no guarantee we close all these properties and some of these transactions might get pushed into next year, but we're excited to be improving our portfolio quality and growing our epo by adding these great assets.
After the ended the quarter, we purchased the shops. The Hillshire village. This is a neighborhood center anchored by a high volume Kroger supermarket, it's located at the edge of a very fluid memorial villages here in Houston.
The three mile demographics are strong with 135000 people at an average household income of $117000.
We've wanted to own this asset for several years and sustaining regular contact with the owner we were able to acquire the property prior to going to market.
We expect to upgraded tenancy and increased rents in years to count drip. Thanks Johnny.
We're very pleased with our accomplishments in 2019, we've acquired for great grocery anchored centers and our new development projects continue to move successfully forward.
Same property NOI at 2.9% is quite good.
Great rent growth and increased occupancy with small shop occupancy at a 10 year high.
As our highly successful disposition program nears the end our shareholders can look forward to the benefits of owning a company with a highly transform portfolio with a much stronger diversified merchant lineup greatly improve demographics and a sector leading balance sheet.
This will allow us to continue to post great operating metrics and will provide our shareholders greater financial stability and future FFO growth great people, great properties and a great platform equals great results I. Thank you all for joining the call today and for your continued interest in Weingarten, operator, we'd now be happy to take questions.
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And from city, we have Christine Mcelroy. Please go ahead.
Good morning, this is Keith.
Steve.
Can you talk about what's driving that why did dispersion in same store with and without redevelopment here today year to date fresh expectations implied in guidance and then maybe walk us through the key drivers of the steeper acceleration implied for same store growth X Ray. Thank you.
Sure Katie.
Lot of the.
A reduction has come on line.
Like we said we have actually.
Close some of those out and it's all those new tenants coming online at are really driving to the different Senate, we had some bad debt in the.
In the same property without read of and we were kind of comping against a pretty pretty tough number.
In terms of the guidance for.
The rest of the year, you know I think like always there's a lot of moving pieces to it we still have about $400000 in bad debt in the number and we don't see any immediate need for that but it does seem prudent to to maintain it we're always remerchandising and improving our properties at a part of that we have some.
Tenants moving out we terminated a couple of tenants at like side in Atlanta, where we're under construction with Michaels and Ulta, we terminated a rite aid early in Raleigh, where we've already lease the space and we had a nice termination for that but that doesn't count towards same property NOI.
And then we're also have some some some pretty difficult comp numbers out some bad debt recoveries and thats kind of hard to predict what we might be able to get this year.
At the end of the day I think three.
For an annualized same property NOI numbers is a pretty good number.
Okay, great. Thanks, and then maybe one more she could just provide any color on your outlook for net transaction activity in 2020, and how you're thinking about acquisition does an avenue of growth going forward versus reinvestment in the portfolio.
Hey, good morning, it's drew.
We look at all opportunities we have the large developments that are progressing along nicely.
We've talked about not adding.
Mixed use to our balance sheet until we digest the three.
That are on our plate as you heard in my prepared remarks, those are coming along nicely but.
I, certainly don't see us spending significant money and 20 on new.
Excuse or residential projects, we do have a huge densification pipeline over an extended period of time and when you get to 21 and 22 I could see us spending a lot of money there, but not so much and 20, Johnny and his team worked very diligently on the small simple.
Very profitable risk adjusted Redevelopments like you talked about at Wellington and we have an active pipeline on those.
As well when it comes to acquisitions, we always work, we always look we see every deal and we've had some good fortune on some deals were able to source and off market transaction that we're very excited about happens to be center I shop in frequently so.
Leased to be able to do that.
So we'll keep working on acquisitions, but it's always opportunistic.
And then as far as capital allocation as I mentioned in my prepared remarks, we've gone through a lot. We sold a lot of weak centers I think we very much benefited shareholders, but we're basically done and we don't see the 2020 dispositions being 150 million when it could be less than that.
And we would expect to match funds are better.
That we would plan to find good growth opportunities looking at or both.
Positions redevelopment.
And if any new developments came along looking at those as well.
Okay, great. Thanks.
From Bank of America with Craig Smith. Please go ahead.
Yes, I Wonder I mean, you guys are pretty active in both buying and selling if you could give us an update on cap rates and demand.
Open air centers.
Hey, Greg Good morning, yes it.
It really varies.
I would tell you that pricing seems to have remained fairly consistent over the last.
Three quarters or so.
You know if you wanted to have a really great supermarket anchored property on on the coast you'd probably be looking at.
Somewhere around a four in a quarter to to five.
In other parts of the of the country, you know, probably 56, 50 75 basis points more.
Power centers seem to be kind of seem to have settled somewhere around that seven and a half range, maybe a little bit more depending on the specific tenancy.
You know debt is is certainly available in.
So we're very very pleased with what we've done in terms of the.
Dispositions in the acquisitions as well.
Thank you said it was helpful.
And then just maybe if you could give us.
Your most recent pre leasing update on the multifamily for both of the Alexander Alexandria projects.
Sure Craig It's drew good morning as mentioned at Centro.
Things are progressing nicely as I said in my prepared remarks for about 30% pre lease, which we're very pleased with rents are.
Trending ahead of our port pro forma.
A very very pleased with that we also have a knife book of of.
Pretty strong inquiries in terms of people that valuating applying in a couple of corporate relo deals that were looking on.
I mentioned Harris Teeter opened in the last few weeks.
So we're just very very pleased with how we're coming out of the gate at central.
The construction timing situation, just as the basics of it.
West Alex is a little behind that so we havent really started leasing per se we're in that.
Organizational part hosting a lot of tours of Realtors bind bagels and coffee at their office.
Web site up and running and as I mentioned should be that turning those units over around the ended the year, but.
Also trying to make sure with the holidays precisely what our timing is.
We'll know more about that over the next few weeks so.
Two projects are very close to each other so the fact that were ahead of pro forma at Centro makes us feel good about west Alex and the two projects are close very close to Amazon HQ too, which doesn't have many employees on the ground.
Today, but but we'll provide a wonderful tailwind as we renew leases over the next few years. So very pleased with those projects and as I mentioned to ahead of schedule construction wise on the Driscoll here in Houston.
Should start having some a heads in beds as they say.
The middle of next year here at the project in Houston, So very pleased.
With the progress that we've made it.
Takes a long time to develop these kind of projects that we've been talking about them on a lot of calls and very excited about the revenue that will be coming online next year end at 21.
Great. Thank you for the uptake.
From Scotia Bank, we have great Nicholas Please go ahead.
Hey, good morning.
Johnny So we've heard in some conversations that more interesting assets maybe are entering the market as smaller private owners are shying away from increasingly cabinet capital intensive business is this indicative of the type of assets you guys have identified for acquisitions or how would you classify those deals considering you mentioned cap rates have been fairly stable.
Also I understand that need to be vague here, but how many deals you currently looking at and what kind of cap rate should we expect to see on those acquisitions.
Hey, good morning, Greg.
You know I would say a lot of what we're focused on our assets that have strong supermarkets and have some room to grow the rent.
And I will tell you that they're generally fully priced.
We havent seen a lot of of mom and pops or smaller folks either selling those or buying those so we're pretty well competing with some of our peers and in some of the.
Others like Us institution so.
You know where I would say, we've we're seeing some things that actually where the prices relatively high today not anything we have under contract but.
Over $100 million deals, which is kind of a have a change in the way that that.
Assets, we've been seeing overtime.
And a lot of them have a lot of different moving pieces. So they really don't lend themselves.
To be.
Resolved by a local person without significant capital.
And Im sorry, what was the other question you had.
Yes, just what you expect from from cap rates and acquisitions.
Yep.
I think we're buying it at a competitive price so we're going to be volume product product that.
Is going to be four and a half 5.5% going in cap rate, we think that we're going to move these return on investment to about five and a quarter five and a half.
Over time in three years or so.
Great. Thanks, and next question I'll preface this by saying I'm not looking for 2020 guidance as same store guidance, but.
Details would be appreciated.
So first could you remind us Steve or Johnny whoever wants to take this one could you remind us what years steady state same store NOI growth expectations are that there's going to be any onetime items that we have.
See right now into next year, and then a little color on the stated the tenant watch list than we can try and make our our own conclusions from there.
So Greg maybe I'll start and then Stephen Johnny can chime in so.
I think we're we're in a world where over an extended period of time, I think two and a half a percent same property NOI growth.
As a good number.
You know as Johnny mentioned, we always have to comp against.
Bad debt and that.
Always moves around.
We have an active redevelopment pipeline and we take some.
Short term pain to position ourselves in order to do those redevelopments that we think are very accretive for shareholders.
That's where we look at the.
Same property with Redev number in Johnny talked about that we feel pretty good that will be around the 3% middle of our guidance this year.
So with two and a half its normal and were better than normal we hope to do a little better next year as far as the watch list. We go through the disclose with you guys. All the top tenants and all the weak tenants and we're in touch with them Theres nothing that.
Jumps off the page Thats.
Super Scary Theres no imminent knowledge that we have that that's not out there, but over some period of time something's going to happen to some of those that risk sentence.
Exactly what quarter that is in which stores we don't know.
We did centers Thats, where we sold a lot of things. So yes, one forever 21 that pays percentage rent they keep it so having a well diversified tenant.
Next is a really good thing so.
John I, Steve anything else to yeah, I Wouldnt you know.
Repeat what I had said earlier that we have about 500000 square feet.
That is signed and not commenced we expect.
About $6 million of.
Well I'd come online on that property over the next six months.
The balance of it throughout the year, and then a little bit into into 21, and I think thats going to be the the bigger driver of things that.
That we have.
The only thing I would add.
Greg is that we have not been asked our business plan, our budgets for 2020, yet and so obviously not it positions and provide guidance, but we're still working through that and as John Andrew mentioned Theres, a lot of moving pieces that will dial into that.
Number ultimately.
All right well thank I appreciate the color there.
From Suntrust, we have Ki bin Kim. Please go ahead.
Thanks.
So I guess the method, it's pretty clear that you're winding down the math of disposition program.
Just curious what is.
The kind of underlying thinking behind that is it that investors are expressing some frustration of a t. with the dilution or is it more of the fact that you think there's not much that you will that you really want to them.
Good morning, he'd been it's drew so.
Yes first of all I.
In the reports that I saw last night.
Pleased that our messaging.
Has come through I totally get.
The questions that people have had about that I think thats questions are totally logical and I understand questions that came up.
Our last earnings call questions that came up outside of the earnings call different concepts.
Conferences totally understand the question and that square.
Tried to do the best we could.
To address those questions.
Directly that we do think.
2020 will be much less as to why I would say it is really a function of we just don't have that much left.
We see all that compelling.
I have some things if you look at our map.
Have some things that we think we can harness more shareholder value, if we give johnny and the team little time to position some of these assets better.
So don't have to be in any rush to sell so I think we've done a fabulous job of de risking and repositioning and it's mostly as you.
Surmise, we just don't have that much less that we're worried about.
Okay, and you mentioned that you're not planning any new development projects in 2020, but maybe there's something.
You do have a pipeline like.
Most companies do that maybe 2020 122, depending on the situation.
But is there a change in.
The threshold or the hurdle rate, how you're looking at I'm looking at the development projects and the pipeline today.
Five and 10% yield.
I mean.
Some questions around kind of low yield versus where your stock's trading implicitly has a threshold or hurdle rate changed at all for things that you will I think contemplate.
I think thats an excellent question so.
Let me try to do this briefly even though it's pretty important subject. So we have a multibillion dollar pipeline and it's one of the things that will go over with folks in.
Ne rate and add to our road show that is.
Identified projects that one can look at these are not entitled there's lots of work to do so thats, where I say, yes feel comfortable that we won't be spending lots and lots of money in 20, but we will be investing going forward.
Roque Center in Houston is an excellent example, where were building the first tower and it's very clear that one could see four or five additional towers there over a long period of time, but obviously, we're going to digest. The first one before we had the next as far as the hurdle rates.
When you're looking at these largely residential.
Projects, you're looking at a.
A different.
Set of returns you're looking at exit cap rates in a more market like DC for residential in the low fours. So if you can develop something to mid to high fives.
That's actually a pretty good profit.
And the other light nice thing about resi as you do get to another bite at the Apple after a year so.
The mixed use projects do take longer I think the risk reward is there I think over a multiyear period, we'll be investing more in them, but will also be very judicious about limiting our exposure and not doing more.
In the near term till we digest some of what we have but we do have a very robust pipeline of future densification and additional redevelopment.
Okay. Thanks drew.
Squeeze one more and Steve I'm not sure if I missed it but what was the year to date impact or 29 to impact from bankruptcies or bad debt and did you I'm not sure. If you said it but did you expect that to normalize or get better next year.
Good morning Keybanc.
Excuse me.
I think the we did realize some bad debt that they issue is really that a comping off of prior quarters, where we had.
Recoveries quite frankly, if you look back over the last couple of years, we have not had bad debt expense, but we've actually had recovery. So I think that what we realized in the third quarter was kind of a normal amount of bad debt as Johnny mentioned, there. There's obviously some still built in the and.
Planned for Q4, we feel fairly comfortable about our tenancy and where things are but.
We don't we don't see a lot of of movement from from what the current state is between now and the end of the year.
Okay. Thank you guys.
Thanks.
From capital one securities we as Chris Lucas. Please go ahead.
Good morning, everybody just to kind of follow up on that detailed question, Steve just on the million dollars of lease intangible write offs was that mostly related to two avenue stores or are there other things in there as well.
Good morning, Chris No I would say it was not Avenue and there was the vast majority was on two leases one down that palms. The charming Charlie's lease that that we got backing and then there was one for a bigger restaurant that was between the two of them. It was like 800, plus thousand dollars of $1 million. So we do have those.
From time to time, they're not huge but there was a couple of big wins this quarter.
And then just just a follow up in this time thinking.
Dressbarn, what's the exposure and what sort of the I'll come to you guys.
For that.
Hi, Chris Good morning, Johnny.
We have three remaining dressbarns.
We did have one close at Largo during the last quarter.
We have not agreed to anything would dress barn, and so we'll pursue.
Then pain the money that they show us and we'll work through that over the next year or two.
Okay, Great and then on the 30% pre leasing so for Don Centro. It does that include any why hotel units or is there is that all sort of normal pre leasing no thats before the why hotel units.
Okay and then.
When does their deal kick in.
The why hotel yes.
I'm not 100% sure, Chris, but I think it's pretty.
Okay, and then Steve just.
One more question for you just as it relates to the accounting approach that you are taking four for west Alex and Central have you guys settled on that terms when youre going to stop capitalizing and expense.
I think.
We've done a quite a bit of research trying to understand the resi market quite frankly from some of our peers as well as some in the multifamily space.
And the Bottomline conclusion as his outputs I think we concluded there is not a standard out there, but we're looking at using the CEO day, plus a short number of days thereafter, as as a benchmark to stop the interest accrual are the interest capitalization that.
Okay, and then I guess just as it relates to the acquisitions I guess, what we've heard more is that there are some large institutional owners that have some funds that are sort of maturing in the next year or two is can you give us a sense as to sort of the sourcing of your.
Acquisition opportunities both for what you already have sort of under contract and what you're looking at as you look into next year.
Sure, Chris we've always highlighted the boots on the ground and the idea that our decisions are made in the parking lot not the board room.
Acquisition team really reflects that we have dedicated resources.
In regional offices that are working with leasing people for redevelopment at new development in in an acquisitions.
Their sourcing opportunities through their their relationships with brokers with tenants and even with property owners like I think hillshire ours is a really good example of.
We are seeing this this.
Teamwork approach really paying off as we continue to be able to define some great properties in.
And try to in really understand some pretty complicated situations that.
That we are looking at.
Okay. Thank you and then the the last question for me.
Relates to M&A, where there have been to really large deals in the industrial and then the data center space announced this week public to public public transactions I guess within the shopping Center Center space was there anything specific that you could point to the suggests why there hasn't been.
No more M&A in the space today.
Yes, Chris drew it's one of those things I think you and I've talked privately I really don't know it is something we've been.
Around and go into conference for a long time I've been CEO for 18 years, I've always predicted that there would be consolidation and it seems that.
Every time there is there some body that.
Wants to go public and take their place so very different facts situation than industrial and yes, we would always look to do the right thing for shareholders, but.
It remains uncertain as to what will happen, but it is perplexing I agree with that.
Great. Thank you appreciate it.
Thats all I have this morning.
From JP Morgan with Hong Zhang Please go ahead.
Yes, hi.
Quick question about the development redevelopment pipeline just looking at comparing the twoq into Threeq, so looks like it and QQ you had an allocation 25000 square feet and west Alex for office and that seems to be who have been rolled up into retail was there any particular reason why.
Combined.
We just felt it was simpler this is drew good morning.
If you if you look at the layout, we had some ground floor retail and then a couple of spaces above that that when the project was originally and see a can see before we got involved with scene is sort of it would be good boutique office, we were never 100% sure how it would play out and we were approached by Hey.
Thank you talking about 12000 square feet. So so we thought it simplified folks so hopefully with this explanation it does going forward.
We're looking at Componentize mixed use developments, where it makes sense.
In terms of leases or as opposed to better in terms of rents where they would if you could mark.
Portfolio aftermarket.
What kind of Delta would you be looking at relative to what you're getting today, we're comfortable with it for us, but thats not really a number that we've gotten into because it's also one of those things that in a lot of cases for the older cheaper leases.
You are going to have trouble accessing it we're very comfortable with the exposure to the.
Office guys in some of the other week folks on the.
Leases expiring over the next few years, but we've never really gotten into that number.
Okay. That's it for me thanks, guys.
Thank you.
And once you get the feed you have a question. Please tell star one on your telephone keypad and from Jefferies. We as Linda Tsai. Please go ahead.
Hi, Thanks for taking my question I was just wondering how has the power and specialty segment of your portfolio, Yes, that's about 20% performed relative to the overall portfolio.
It's performed very well one of the things that we try to stress and good morning, one of the things that we try to stress is that the sensors that we have in that portfolio Theres a lot of information on this in a roadshow deck.
Really really good centers, so our Mueller center in Austin.
Just north of UTI main campus by the Dell Medical center tremendous infill location.
Our post oak and West timer shopping center right across from Simon's Galleria are our.
Center at Richmond, just south of the Galleria you know the centers that we have that don't have a supermarket are really really good.
And Thats, where they don't lend themselves to a lot of.
Odd classifications.
Industry, sometimes uses so we're really pleased with them.
You have a longer term goal of exposure that you want to power centers.
And that's where in the sense of the traditional word power center, we don't have very much exposure to two large center with many many big boxes and very little shop space.
We have some quotes supermarket anchored power centers that we look like bunker Hill with a fabulous HCB store.
In a very densely populated areas and then we have some unique centers.
Like post oak in West time, or but we've got very few of what traditional power centers with multiple multiple boxes.
You know that and no shop space. So we're.
You know very comfortable with the right mix of tenants love supermarkets, but let a lot of the other basic goods and services folks in but certainly consider buying the right non supermarket anchored center and as mentioned before.
Have sold a lot of this places that we saw risk so pretty comfortable and we'll have less dispositions in 2020.
So you don't have a lot to sell on that front either.
Thanks, a lot.
Thank you and we'll now turn it back should you for closing remarks.
Well. Thank you Brandon so appreciate the interest in Weingarten and all the questions will be around this afternoon. If there are more questions and happy to entertain those we'll also see many of you at the ne right in a couple of weeks and I got to say go Astra So everybody have a great day.
Thank you ladies and gentlemen. This concludes today's conference. Thank you for joining you may now disconnect.