Weingarten Realty Eyes Cutting Dividend 52 Percent

HOUSTON (AP) — Weingarten Realty Investors on Thursday said its management intends to recommend that its board cut its dividend by 52 percent.

The real estate investment trust said if plans to issue 25.5 million shares of common stock go through, management will advise the board to reduce the dividend to 25 cents per share, from the 52.5 cents per share paid in the first quarter.

"While Weingarten is committed to continually increasing shareholder value, we feel that in these uncertain economic times the best value we can provide our shareholder's is by preserving liquidity," said President and Chief Executive Drew Alexander in a statement. "This dividend strategy will allow Weingarten to retain approximately $73 million of cash on our balance sheet for the remainder of 2009."

Weingarten currently has about 87.4 million shares outstanding, according to regulatory filings.

Weingarten shares closed Thursday trading up 50 cents, or 3.3 percent, at $15.68. After the stock offering was announced, shares fell 78 cents, or 5 percent, to $14.90 in aftermarket electronic trading.