Edgar Filing: WEINGARTEN REALTY INVESTORS /TX/

PROSPECTUS SUPPLEMENT
----------------------
(TO PROSPECTUS DATED OCTOBER 30, 2001)

198,098 SHARES

WEINGARTEN REALTY INVESTORS

COMMON SHARES
______________________

Weingarten Realty Investors is offering and selling 198,098 common shares
of beneficial interest to Cohen & Steers Quality Income Realty Fund, Inc. Our
common shares are listed on the New York Stock Exchange under the symbol "WRI."
The last reported sale price for the common shares on February 25, 2002 was
$50.48 per share.

To preserve our status as a real estate investment trust for federal income
tax purposes, we impose certain restrictions on ownership of our common shares.
See "Description of Capital Shares-Restrictions on Ownership" in the
accompanying prospectus.

Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if this
prospectus supplement or the accompanying prospectus is truthful or complete.
Any representation to the contrary is a criminal offense.
______________________

The Fund will purchase our common shares at a price of $50.48 per share
resulting in $9,999,987 of aggregate proceeds to us before deducting estimated
fees and expenses of this offering.

The shares will be ready for delivery on or about February 28, 2002.

______________________

The date of this prospectus supplement is February 25, 2002.

YOU SHOULD RELY ONLY ON THE INFORMATION CONTAINED OR INCORPORATED BY
REFERENCE IN THIS PROSPECTUS SUPPLEMENT AND THE ACCOMPANYING PROSPECTUS. WE
HAVE NOT AUTHORIZED ANY OTHER PERSON TO PROVIDE YOU WITH DIFFERENT OR ADDITIONAL
INFORMATION. IF ANYONE PROVIDES YOU WITH DIFFERENT OR ADDITIONAL INFORMATION,
YOU SHOULD NOT RELY ON IT. WE ARE NOT MAKING AN OFFER TO SELL THESE SECURITIES
IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED. YOU SHOULD ASSUME
THAT THE INFORMATION APPEARING IN THIS PROSPECTUS SUPPLEMENT, THE ACCOMPANYING
PROSPECTUS AND THE DOCUMENTS INCORPORATED BY REFERENCE IS ACCURATE ONLY AS OF
THEIR RESPECTIVE DATES. OUR BUSINESS, FINANCIAL CONDITION, RESULTS OF
OPERATIONS AND PROSPECTS MAY HAVE CHANGED SINCE THOSE DATES.

______________________

TABLE OF CONTENTS

PROSPECTUS SUPPLEMENT

PAGE
----
The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-3
Use of Proceeds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-3
Plan of Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . S-3
Legal Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-4

PROSPECTUS

Cautionary Statement Concerning Forward-Looking Statements . . . . . . . 1
About This Prospectus. . . . . . . . . . . . . . . . . . . . . . . . . . . 1
The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Use of Proceeds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Ratios of Earnings to Combined Fixed Charges and Preferred Share Dividends . 2
Description of Debt Securities and Convertible Debt Securities. . . . 2
Description of Capital Shares . . . . . . . . . . . . . . . . . . . . . . 9
Description of Securities Warrants. . . . . . . . . . . . . . . . . . . . 18
Description of Other Classes of Outstanding Shares . . . . . . . . . . 19
Federal Income Tax Consequences . . . . . . . . . . . . . . . . . . . . . 20
Plan of Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Legal Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Experts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Where You Can Find More Information . . . . . . . . . . . . . . . . . . 32
Incorporation of Documents By Reference. . . . . . . . . . . . . . . . . 33

S-2

THE COMPANY

We are a real estate investment trust based in Houston, Texas. We develop,
acquire and own anchored neighborhood and community shopping centers. To a
lesser degree, we develop, acquire and own industrial real estate. We have
engaged in these activities since 1948.

As of December 31, 2001, we owned or had an equity interest in 287
operating properties consisting of 35.7 million square feet of building area.
These properties consist of 228 shopping centers generally in the 100,000 to
400,000 square foot range, 57 industrial projects, one multi-family apartment
complex and one office building. Our properties are located in Texas (179
properties) and the following states: California (19), Louisiana (15), Arizona
(13), Nevada (10), Florida (9), Tennessee (8), Arkansas (6), New Mexico (6),
Colorado (6), Kansas (5), Oklahoma (4), Missouri (2), Mississippi (1), North
Carolina (1), Georgia (1), Maine (1) and Illinois (1). Our shopping centers are
anchored primarily by supermarkets, drugstores and other retailers that sell
basic necessity-type items. We currently lease to approximately 4,100 different
tenants under 5,200 separate leases. As of December 31, 2001, our properties
were 92% occupied.

Our executive offices are located at 2600 Citadel Plaza Drive, Suite 300,
Houston, Texas 77008, and our telephone number is (713) 866-6000. Our website
is www.weingarten.com.

USE OF PROCEEDS

We estimate that the net proceeds from the sale of the shares we are
offering in this prospectus supplement will be approximately $9,442,487 million.
"Net proceeds" is what we expect to receive after paying certain fees and
expenses of this offering, which we estimate will be approximately $557,500. We
will use the net proceeds received from this offering to repay $9,442,487
million of the outstanding indebtedness under our credit facility.
Pending these uses of the net proceeds, we may invest in short-term income
producing investments such as investments in commercial paper, government
securities or money market funds that invest in government securities.

PLAN OF DISTRIBUTION

Subject to the terms and conditions of a purchase agreement dated February
25, 2002, the Fund has agreed to purchase, and we have agreed to sell to the
Fund, the number of common shares set forth on the cover of this prospectus
supplement. The purchase agreement provides that the obligations of the Fund to
purchase the common shares included in this offering are subject to the approval
of certain legal matters by counsel and to certain other conditions.

Merrill Lynch, Pierce, Fenner & Smith Incorporated is acting as our
placement agent, on a best efforts basis, in connection with the sale of our
common shares to the Fund, for which Merrill Lynch will receive a placement
agent fee of approximately $512,500. Merrill Lynch is also acting as an
underwriter in the initial public offering of the common shares of the Fund, for
which services Merrill Lynch will receive customary fees. We have agreed to
indemnify the placement agent against certain liabilities, including certain
liabilities under the Securities Act of 1933, as amended, or to contribute to
payments the placement agent may be required to make because of any of those
liabilities.

The expenses of the offering, including the placement agent fee, are
estimated at $557,500 and are payable by us.

S-3

Merrill Lynch has from time to time provided, and in the future may
provide, certain investment banking services to us and our affiliates, for which
they have received, and in the future would receive, customary fees.

LEGAL MATTERS

The validity of the common shares will be passed upon for the company by
Locke Liddell & Sapp LLP, Dallas, Texas. Sidley Austin Brown & Wood LLP, New
York, New York, will pass upon certain matters relating to this offering for the
placement agent and may rely as to matters of Texas law upon the opinion of
Locke Liddell & Sapp LLP.

S-4

PROSPECTUS

WEINGARTEN REALTY INVESTORS
$500,000,000
COMMON SHARES, PREFERRED SHARES, DEPOSITARY SHARES, CONVERTIBLE DEBT SECURITIES,
DEBT SECURITIES AND SECURITIES WARRANTS
__________

Weingarten Realty Investors, a real estate investment trust formed under
the Texas Real Estate Investment Trust Act, may offer, from time to time, in one
or more series or classes and in amounts, at prices and on terms that it will
determine at the time of offering, with an aggregate public offering price of up
to $500,000,000:

- unsecured debt securities that may be either senior debt securities or
subordinated debt securities;
- convertible debt securities;
- whole or fractional preferred shares;
- preferred shares represented by depositary shares;
- common shares; or
- warrants to purchase debt securities, convertible debt securities,
preferred shares or common shares, all as shall be designated by
Weingarten at the time of the offering.

We will provide the specific terms of these securities in supplements to
this prospectus. You should read this prospectus and the supplements carefully
before you invest in any of these securities.

We may offer the securities directly, through agents designated from
time to time, or to or through underwriters or dealers. If any agents or
underwriters are involved in the sale of any of the securities, their names, and
any applicable purchase price, fee, commission or discount arrangement between
or among them, will be set forth, or will be calculable from the information set
forth, in the applicable prospectus supplement. For more information on this
topic, please see "Plan of Distribution" on page 31. No securities may be sold
without the delivery of the applicable prospectus supplement describing the
method and terms of the offering of such securities.

Our common shares trade on the New York Stock Exchange under the symbol
"WRI."

____________

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THE SECURITIES DISCUSSED IN THE
PROSPECTUS, NOR HAVE THEY DETERMINED WHETHER THIS PROSPECTUS IS ACCURATE OR
ADEQUATE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

The date of this prospectus is October 30, 2001

WE HAVE NOT AUTHORIZED ANY DEALER, SALESMAN OR OTHER PERSON TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATION OTHER THAN THOSE CONTAINED OR
INCORPORATED BY REFERENCE IN THIS PROSPECTUS OR ANY APPLICABLE SUPPLEMENT TO
THIS PROSPECTUS. YOU MUST NOT RELY UPON ANY INFORMATION OR REPRESENTATION NOT
CONTAINED OR INCORPORATED BY REFERENCE IN THIS PROSPECTUS OR ANY APPLICABLE
SUPPLEMENT TO THIS PROSPECTUS AS IF WE HAD AUTHORIZED IT. THIS PROSPECTUS AND
ANY APPLICABLE PROSPECTUS SUPPLEMENT DO NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OTHER THAN THE REGISTERED
SECURITIES TO WHICH THEY RELATE, NOR DOES THIS PROSPECTUS AND ANY ACCOMPANYING
PROSPECTUS SUPPLEMENT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN
OFFER TO BUY SECURITIES IN ANY JURISDICTION TO ANY PERSON TO WHOM IT IS UNLAWFUL
TO MAKE SUCH OFFER OR SOLICITATION IN SUCH JURISDICTION. YOU SHOULD NOT ASSUME
THAT THE INFORMATION CONTAINED IN THIS PROSPECTUS OR ANY APPLICABLE PROSPECTUS
SUPPLEMENT IS CORRECT ON ANY DATE AFTER THEIR RESPECTIVE DATES, EVEN THOUGH THIS
PROSPECTUS IS DELIVERED OR SECURITIES ARE SOLD ON A LATER DATE.

TABLE OF CONTENTS

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This prospectus and the applicable prospectus supplement include and
incorporate by reference forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act. We intend those forward-looking statements to be covered by the safe
harbor provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are
generally identifiable by use of the words "believe" "expect" "intend"
"anticipate" "plan" "estimate" "project" or similar expressions. Our ability to
predict results or the actual effect of future plans or strategies is inherently
uncertain. Actual results could differ materially from those in forward-looking
statements. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

ABOUT THIS PROSPECTUS

This prospectus is part of a "shelf" registration statement that we filed
with the SEC. By using a shelf-registration statement, we may sell, from time to
time, in one or more offerings, any combination of the securities described in
this prospectus. Warrants that will become exercisable within one year or less
from the date of issuance and the securities underlying any warrants that may be
sold hereunder are being registered herein. The total dollar amount of the
securities we sell through these offerings will not exceed $500,000,000. This
prospectus provides you with a description of the material terms of the
securities we may offer, which are known at this time. Each time we sell
securities, we will provide you with a prospectus supplement that contains
specific information about the terms of the securities being offered. The
prospectus supplement will supplement information contained in this prospectus.
You should read both this prospectus and any prospectus supplement together with
the additional information described under the heading "Where You Can Find More
Information" on page 32.

THE COMPANY

We are a real estate investment trust based in Houston, Texas. We develop,
acquire and own anchored neighborhood community shopping centers. To a lesser
degree, we develop, acquire and own industrial real estate. We have engaged in
these activities since 1948.

As of September 30, 2001, we owned or had an equity interest in 282
operating properties consisting of 33.9 million square feet of building area.
These properties consist of 227 shopping centers generally in the 100,000 to
400,000 square foot range, 53 industrial projects, one multi-family apartment
complex and one office building. Our properties are located in Texas (182
properties) and the following states: California (19), Louisiana (14), Arizona
(13), Nevada (9), Tennessee (7), Arkansas (6), New Mexico (6), Florida (6),
Oklahoma (4), Kansas (5), Colorado (5), Missouri (2), Mississippi (1), North
Carolina (1), Maine (1) and Illinois (1). Our shopping centers are anchored
primarily by supermarkets, drugstores and other retailers that sell basic
necessity-type items. We currently lease to approximately 4,000 different
tenants under 5,200 separate leases. As of September 30, 2001, our properties
were 92.4% occupied.

Our executive offices are located at 2600 Citadel Plaza Drive, Suite 300,
Houston, Texas 77008, and our telephone number (713) 866-6000.

USE OF PROCEEDS

Unless otherwise described in the applicable prospectus supplement, we
intend to use the net proceeds from the sale of the securities for general
corporate purposes, working capital, acquisitions (which may include
acquisitions of real property, interests therein or real estate-related
securities), development, repayment or refinancing of debt, or capital
expenditures. Pending the use thereof, Weingarten intends to invest any net
proceeds in short-term interest-bearing securities.

RATIOS OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED SHARE DIVIDENDS

The following table sets forth the ratio of earnings to combined fixed
charges and preferred share dividends and of funds from operations before
interest expense to combined fixed charges and preferred share dividends for the
periods shown:

YEARS ENDED DECEMBER 31,
---------------------------------
1996 1997 1998 1999 2000
----- ----- ----- ----- -----

Ratio of earnings to combined fixed charges
and preferred share dividends . . . . . . . . . . . . . . 3.20x 2.72x 2.27x 2.29x 1.80x

Ratio of funds from operations to combined
fixed charges and preferred share dividends . . . . . . . 4.37x 3.80x 3.28x 2.79x 2.60x

The ratios of earnings to combined fixed charges and preferred share
dividends were computed by dividing earnings by the sum of fixed charges and
preferred share dividends. The ratios of funds from operations before interest
expense to combined fixed charges and preferred share dividends were computed by
dividing funds from operations before interest expense by the sum of fixed
charges and preferred share dividends.

For these purposes, earnings consist of income before extraordinary items
plus fixed charges (excluding interest costs capitalized) and preferred share
dividends. Funds from operations before interest expense consists of net income
plus depreciation and amortization of real estate assets, interest on
indebtedness and extraordinary charges, less gains and losses on sales of
properties and securities.

The Board of Governors of the National Association of Real Estate
Investment Trusts defines funds from operations as net income (loss) computed in
accordance with generally accepted accounting principles, excluding gains or
losses from sales of property, plus real estate related depreciation and
amortization, and after adjustments for unconsolidated partnerships and joint
ventures. In addition, NAREIT recommends that extraordinary items not be
considered in arriving at FFO. We calculate FFO in a manner consistent with the
NAREIT definition. Most industry analysts and equity REITS, including
Weingarten, believe FFO is an alternative measure of performance relative to
other REITs. There can be no assurance that FFO presented by Weingarten is
comparable to similarly titled measures of other REITs. FFO should not be
considered as an alternative to net income or other measurements under GAAP as
an indicator of our operating performance or to cash flows from operating,
investing, or financing activities as a measure of liquidity. FFO does not
reflect working capital changes, cash expenditures for capital improvements, or
principal payments on indebtedness.

DESCRIPTION OF DEBT SECURITIES AND CONVERTIBLE DEBT SECURITIES

The senior debt securities will be issued under a senior indenture dated as
of May 1, 1995 between us and Chase Bank of Texas, National Association, as
trustee, and the subordinated debt securities will be issued under a
subordinated indenture dated as of May 1, 1995 between us and Chase Bank of
Texas, National Association, as trustee. The term "trustee" as used in this
prospectus refers to any bank that we may appoint as trustee under the terms of
the applicable indenture, in its capacity as trustee for the senior securities
or the subordinated securities.

We have summarized the material terms and provisions of the
indentures. The summary is not complete. If we refer to particular provisions of
the indentures, the provisions, including definitions of terms, are incorporated
by reference as a part of the summary. We have included references to articles
or section numbers of the applicable indenture so that you can easily locate
these provisions in the indentures. The indentures have been incorporated by
reference as exhibits to the registration statement of which this prospectus is
a part. We urge you to read the indentures because they, and not this
description, define the rights of holders of debt securities. The indentures
are subject to the Trust Indenture Act of 1939, as amended. To obtain copies of
the indentures, see "Where You Can Find More Information" on page 33.

GENERAL

The debt securities will be direct, unsecured general obligations of
Weingarten. The senior debt securities will rank equally with all of our other
unsecured and unsubordinated indebtedness. The subordinated debt securities will
be subordinated in right of payment to the prior payment in full of our senior
debt securities. See "-Subordinated Debt Securities" on page 4.

The indentures do not limit the amount of debt securities that we can
offer. Each indenture allows us to issue debt securities up to the principal
amount that may be authorized by us. We may issue additional debt securities
without your consent. We may issue debt securities in one or more series. All
debt securities of one series need not be issued at the same time and, unless
otherwise provided, a series may be reopened, without the consent of the holders
of the debt securities of such series, for issuances of additional debt
securities of such series. (Section 301)

A prospectus supplement and any supplemental indentures relating to any
series of debt securities being offered will include specific terms relating to
the offering. These terms will include some or all of the following:

- the title, type and amount of the debt securities;

- the total principal amount and priority of the debt securities;

- the percentage of the principal amount at which the debt securities
will be issued and any payments due if the maturity of the debt
securities is accelerated;

- the dates on which the principal of the debt securities will be
payable;

- the interest rates (which may be fixed or variable) which the
debt securities will bear, or the method for determining rates;

- the dates from which the interest on the debt securities will accrue
and be payable, or the method of determining those dates, and any
record dates for the payments due;

- any provisions for redemption, conversion or exchange of the debt
securities, at our option or otherwise, including the periods, prices
and terms of redemption or conversion;

- any sinking fund or similar provisions, which would obligate us
to repurchase or otherwise redeem the debt securities, along with
the periods, prices and terms of redemption, purchase or repayment;

- the amount or percentage payable if we accelerate the maturity of
the debt securities, if other than the principal amount;

- any additional events of default or covenants set forth in the
indentures;

- the terms of subordination, if any;

- any special tax implications of the debt securities, including
provisions for original issue discount securities; and

- any other terms consistent with the indenture.

The debt securities may be issued in registered, bearer, coupon or global
form. We may authorize and determine the terms of a series of debt securities by
resolution of our board of trust managers or the pricing committee of our board
of trust managers or through a supplemental indenture. Unless otherwise
described in the applicable prospectus supplement, we will issue debt securities
only in denominations of $1,000 and integral multiples of that amount. (Section
301)

SENIOR DEBT SECURITIES

Any additional senior debt securities we issue will rank equally in right
of payment with the senior debt securities offered by this prospectus and the
applicable prospectus supplement. Further, the senior indenture does not
prohibit us from issuing additional debt securities that may rank equally in
right of payment to the senior debt securities. Any senior debt securities
offered pursuant to the senior indenture will be senior in right of payment to
all subordinated debt securities issued under the subordinated indenture.

SUBORDINATED DEBT SECURITIES

The subordinated debt securities will have a junior position to all of our
senior debt. Under the subordinated indenture, payment of the principal,
interest and any premium on the subordinated debt securities will generally be
subordinated and junior in right of payment to the prior payment in full of all
senior debt. The subordinated indenture provides that no payment of principal,
interest and any premium on the subordinated debt securities may be made in the
event:

- of any insolvency, bankruptcy or similar proceeding involving
us or our properties; or

- we fail to pay the principal, interest, any premium or any
other amounts on any senior debt when due.

The subordinated indenture will not limit the amount of senior debt that we
may incur. All series of subordinated debt securities as well as other
subordinated debt issued under the subordinated indenture will rank equally with
each other in right of payment.

The subordinated indenture prohibits us from making a payment of principal,
premium, interest or sinking fund payments for the subordinated debt securities
during the continuance of any default on senior debt or any default under any
agreement pursuant to which the senior debt was issued beyond the grace period,
unless and until the default on the senior debt is cured or waived.
(Subordinated Indenture Article Sixteen)

Upon any distribution of our assets in connection with any dissolution,
winding up, liquidation, reorganization, bankruptcy or other similar proceeding,
the holders of all senior debt securities will first be entitled to receive
payment in full of the principal, any premium and interest due on the senior
debt before the holders of the subordinated debt securities are entitled to
receive any payment. (Subordinated Indenture Article Sixteen) Because of this
subordination, if we become insolvent, our creditors who are not holders of
senior debt or of the subordinated debt securities may recover less, ratably,
than holders of senior debt but may recover more, ratably, than holders of the
subordinated debt securities.

GLOBAL CERTIFICATES

Unless the prospectus supplement otherwise provides, we will issue debt
securities as one or more global certificates that will be deposited with The
Depositary Trust Company. Unless otherwise specified in the applicable
prospectus supplement, debt securities issued in the form of a global
certificate to be deposited with DTC will be represented by a global certificate
registered in the name of DTC or its nominee. This means that we will not issue
certificates to each holder. Generally, we will issue global securities in the
total principal amount of the debt securities in a series. Debt securities in
the form of a global certificate may not be transferred except as a whole among
DTC, its nominee or a successor to DTC and any nominee of that successor.

We may determine not to use global certificates for any series. In that
event, we will issue debt securities in certificate form.

The laws of some jurisdictions require that certain purchasers of
securities take physical delivery of securities in certificate form. Those laws
and some conditions on transfer of global securities may impair the ability to
transfer interests in global securities.

OWNERSHIP OF GLOBAL SECURITIES

So long as DTC or its nominee is the registered owner of a global security,
that entity will be the sole holder of the debt securities represented by that
instrument. Both we and the trustee are only required to treat DTC or its
nominee as the legal owner of those securities for all purposes under the
indentures.

Unless otherwise specified in this prospectus or the prospectus supplement,
no actual purchaser of debt securities represented by a global security will be
entitled to receive physical delivery of certificated securities or will be
considered the holder of those securities for any purpose under the indentures.
In addition, no actual purchaser will be able to transfer or exchange global
securities unless otherwise specified in this prospectus or the prospectus
supplement. As a result, each actual purchaser must rely on the procedures of
DTC to exercise any rights of a holder under the applicable indenture. Also, if
an actual purchaser is not a DTC participant, the actual purchaser must rely on
the procedures of the participant through which it owns its interest in a global
security.

THE DEPOSITARY TRUST COMPANY

The following is based on information furnished by DTC and applies to the
extent that it is the depositary, unless otherwise provided in the prospectus
supplement.

Registered Owner. The debt securities will be issued as fully registered
securities in the name of Cede & Co. (which is DTC's partnership nominee). The
trustee will deposit the global security with the depositary. The deposit with
the depositary and its registration in the name of Cede & Co. will not change
the nature of the actual purchaser's ownership interest in the debt securities.

DTC's Organization. DTC is a limited purpose trust company organized under
the New York Banking Law, a "banking organization" within the meaning of that
law, a member of the Federal Reserve System, a "clearing corporation" within the
meaning of the New York Uniform Commercial Code and a "clearing agency"
registered under the provisions of Section 17A of the Securities Exchange Act of
1934, as amended.

DTC is owned by a number of its direct participants, the New York Stock
Exchange, Inc. and NasdaqAmex. Direct participants include securities brokers
and dealers, banks, trust companies, clearing corporations and certain other
organizations who directly participate in DTC. Other entities may access DTC's
system by clearing transactions through or maintaining a custodial relationship
with direct participants. The rules applicable to DTC and its participants are
on file with the SEC.

DTC's Activities. DTC holds securities that its participants deposit with
it. DTC also facilitates the settlement among participants of securities
transactions, such as transfers and pledges, in deposited securities through
electronic computerized book-entry changes in participants' accounts. Doing so
eliminates the need for physical movement of securities certificates.

Participants' Records. Except as otherwise provided in this prospectus or a
prospectus supplement, purchases of debt securities must be made by or through a
direct participant, which will receive a credit for the securities on DTC's
records. The purchaser's interest is in turn to be recorded on the participants'
records. Actual purchasers will not receive written confirmations from DTC of
their purchase, but they generally receive confirmations along with periodic
statements of their holdings from the participants through which they entered
into the transaction.

Transfers of interests in the global securities will be made on the books
of the participants on behalf of the actual purchasers. Certificates
representing the interest of the actual purchasers in the securities will not be
issued unless the use of global securities is suspended. DTC has no knowledge of
the actual purchasers of global securities. DTC's records only reflect the
identity of the direct participants who are responsible for keeping account of
their holdings on behalf of their customers.

Notices Among the depositary, Participants and Actual Owners. Notices and
other communications by DTC, its participants and the actual purchasers will be
governed by arrangements among them, subject to any legal requirements in
effect.

Voting Procedures. Neither DTC nor Cede & Co. will give consents for or
vote the global securities. DTC generally mails an omnibus proxy to us just
after the applicable record date. That proxy assigns Cede & Co.'s voting rights
to the direct participants to whose accounts the securities are credited at that
time.

Payments. Principal and interest payments made by us will be delivered to
DTC. DTC's practice is to credit direct participants' accounts on the applicable
payment date unless it has reason to believe that it will not receive payment on
that date. Payments by participants to actual purchasers will be governed by
standing instructions and customary practices, as is the case with securities
held for customers in bearer form or registered in "street name." Those
payments will be the responsibility of that participant, not DTC, the trustee or
us, subject to any legal requirements in effect at that time.

We are responsible for payment of principal, interest and premium, if any,
to the trustee, who is responsible to pay it to DTC. DTC is responsible for
disbursing those payments to direct participants. The participants are
responsible for disbursing payment to the actual purchasers.

TRANSFER OR EXCHANGE OF DEBT SECURITIES

You may transfer or exchange debt securities (other than global securities)
without a service charge at the corporate trust office of the trustee. You may
also surrender debt securities (other than global securities) for conversion or
registration of transfer without a service charge at the corporate trust office
of the trustee. You must execute a proper form of transfer and pay any taxes or
other governmental charges resulting from that action.

TRANSFER AGENT

If we designate a transfer agent (in addition to the trustee) in a
prospectus supplement, we may at any time rescind this designation or approve a
change in the location through which any such transfer agent acts. We will,
however, be required to maintain a transfer agent in each place of payment for a
series of debt securities. We may at any time designate additional transfer
agents for a series of debt securities.

COVENANTS

Under the indentures, we are required to:

- pay the principal, interest and any premium on the debt
securities when due;

- maintain a place of payment;

- deliver a report to the trustee at the end of each fiscal year
reviewing our obligations under the indentures;

- deposit sufficient funds with any paying agent on or before the
due date for any principal, interest or any premium; and

- maintain an unencumbered total asset value (as defined in the
indentures) in an amount of not less than 100% of the aggregate
principal amount of all our outstanding debt.

Under the indentures, we may not:

- incur or permit a subsidiary to incur any debt (as defined in
the indentures) which causes the aggregate principal amount of all
our outstanding debt to become greater than 60% of the sum of (1)
our total assets (as defined in the indentures) at the end of the
calendar quarter covered in our then most recent 10-K or 10-Q
and (2) the purchase price of any real estate assets or
mortgages receivable acquired and any securities offering proceeds
received since the end of such calendar quarter to the extent
such proceeds were not used by us to acquire real estate assets
or mortgages receivable or used to reduce debt;

- incur or permit a subsidiary to incur any debt if our
ratio of consolidated income available for debt service (as defined
in the indentures) to the annual service charge (as defined
in the indentures) shall have been less than 2.5 for the four
quarters then most recently ended; and

- incur any debt or permit a subsidiary to incur any debt secured
by any mortgage lien, charge, pledge, encumbrance or security
interest in which the aggregate principal amount of all our
outstanding secured debt in greater than 40% of our total assets.

EVENTS OF DEFAULT, NOTICE AND WAIVER

Events of default under the indentures for any series of debt securities
include:

- failure for 30 days to pay interest on any debt securities of that
series;

- failure to pay principal or premium, if any, of any debt
securities of that series;

- failure to pay any sinking fund payment when due;

- failure to perform any other covenants contained in the indentures
(other than a covenant added to the indentures solely for the
benefit of a particular series of debt securities), which
continues for 60 days after written notice as provided in
the indenture;

- default under any of our other debt instruments with
an aggregate principal amount outstanding of at least
$10,000,000; or

- events of bankruptcy, insolvency or reorganization, or
court appointment of a receiver, liquidator or trustee.

An event of default for a particular series of debt securities does not
necessarily constitute an event of default for any other series of debt
securities issued under an indenture. The trustee may withhold notice to the
holders of debt securities of any default (except in the payment of principal or
interest) if it considers such withholding of notice to be in the best interests
of the holders.

If an event of default for any series of debt securities occurs and
continues, the trustee or the holders of at least 25% of the total principal
amount of the debt securities of the series may declare the entire principal of
that series due and payable immediately. (Section 502) The trustee will not be
charged with knowledge of any event of default other than our failure to make
principal, interest or sinking fund payments unless written notice is received
by the trustee or the trustee has actual notice of the event of default.
(Section 603) If this happens, the holders of a majority of the aggregate
principal amount of the debt securities of that series can generally void the
declaration. (Section 502)

The indentures limit the right to institute legal proceedings. No holder of
any debt securities will have the right to bring a claim under an indenture
unless:

- the holder has given written notice of default to the trustee;

- the holders of not less than 25% of the aggregate principal amount
of debt securities of that series shall have made a written request
to the trustee to bring the claim and furnished the trustee
reasonable indemnification as it may require;

- the trustee has not commenced an action within 60 days of receipt
of the notice; and

- no direction inconsistent with a request has been given to the
trustee by the holders of not less than a majority of the aggregate
principal amount of the debt securities. The holders of debt
securities may enforce payment of the principal of or premium, if
any, or interest on their debt securities. No holder of debt
securities of a particular series has the right to prejudice the
rights or obtain priority or preference over the rights of any
other holder of debt securities of that series. (Section 507)

The holders of a majority in aggregate principal amount of any series of
debt securities may direct the time, method and place of conducting any
proceeding for any remedy available to the trustee or exercising any power
conferred on the trustee with respect to the securities of any series; provided,
however, that

- the direction does not conflict with any rule of law or an
indenture,

- the trustee may take any action it deems proper and which
is consistent with the direction of the holders; and

- the trustee is not required to take any action that would unduly
prejudice the holders of the debt securities not taking part in the
action or would impose personal liability on the trustee.
(Section 512)

Each indenture provides that, if an event of default has occurred, the
trustee is to use the degree of care a prudent person would use in the conduct
of his own affairs. (Section 602) Subject to those provisions, the trustee is
under no obligation to exercise any of its rights or powers under an indenture
at the request of any of the holders of the debt securities of a series unless
they have furnished to the trustee reasonable security or indemnity. (Section
603)

We will be required to furnish to the trustee in an annual statement a
notice as to our fulfillment of all of our obligations under the relevant
indenture. (Section 1010)

MODIFICATION OF THE INDENTURES

In order to change or modify an indenture, we must obtain the consent of
holders of at least a majority in principal amount of all outstanding debt
securities affected by that change. The consent of holders of at least a
majority in principal amount of each series of outstanding debt securities is
required to waive compliance by us with specific covenants in an indenture. We
must obtain the consent of each holder affected by a change:

- to extend the maturity, or to reduce the principal, redemption
premium or interest rate;

- change the place of payment, or the coin or currency, for
payment; limit the right to sue for payment;

- reduce the level of consents needed to approve a change to an
indenture; or modify any of the foregoing provisions or any
of the provisions relating to the waiver of certain past defaults
or certain covenants, except to increase the required level of
consents needed to approve a change to an indenture. (Article
Nine)

DEFEASANCE

We may defease the debt securities of a series, which means that we would
satisfy our duties under that series before maturity. We may do so by depositing
with the trustee, in trust for the benefit of the holders, sufficient funds to
pay the entire indebtedness on that series, including principal, premium, if
any, and interest. We must also comply with other conditions before we defease
the debt securities. We must deliver an opinion of counsel to the effect that
the holders of that series will have no federal income tax consequences as a
result of the defeasance. (Article Fourteen)

CONVERSION

Debt securities may be convertible into or exchangeable for common shares
or preferred shares. The prospectus supplement will describe the terms of any
conversion rights. To protect our status as a REIT, debt securities are not
convertible if, as a result of that conversion, any person would then be deemed
to own, directly or indirectly, more than 9.8% of our capital shares. See
"Description of Capital Shares-Restrictions On Ownership" on page 15.

MERGER, CONSOLIDATION AND SALE OF ASSETS

Each indenture generally permits us to consolidate or merge with another
entity. The indentures also permit us to sell all or substantially all of our
property and assets. If this happens, the remaining or acquiring entity shall
assume all of our responsibilities and liabilities under the indentures
including the payment of all amounts due on the debt securities and performance
of the covenants in the indentures. However, we will only consolidate or merge
with or into any other entity or sell all or substantially all of our assets
according to the terms and conditions of the indentures. The remaining or
acquiring entity will be substituted for us in the indentures with the same
effect as if it had been an original party to the indentures. Thereafter, the
successor entity may exercise our rights and powers under any indenture, in our
name or in its own name. Any act or proceeding required or permitted to be done
by our board of trust managers or any of our officers may be done by the board
or officers of the successor entity. (Article Eight)

DESCRIPTION OF CAPITAL SHARES

Our declaration of trust provides that we may issue up to 160,000,000
shares of beneficial interest, consisting of 150,000,000 common shares, par
value $0.03 per share, and 10,000,000 preferred shares, par value $.03 per
share. At September 30, 2001, 32, 490,804 common shares, 3,000,000 7.44% Series
A Cumulative Redeemable Preferred Shares, 3,528,221 7.125% Series B Cumulative
Redeemable Preferred Shares and 2,256,253 7.0% Series C Cumulative Redeemable
Preferred Shares were issued and outstanding. In addition, we have 1,637,000
common shares available for issuance upon the exercise of options under our
employee and trust manager share option plans, which includes 1,000,000 common
shares under the 2001 Long Term Incentive Plan that is subject to shareholder
approval. Our common shares are listed on the New York Stock Exchange under the
symbol "WRI." Mellon Investor Service, LLC is the transfer agent and registrar
of our common shares and preferred shares.

COMMON SHARES

The following description of our common shares sets forth certain of their
material terms and provisions. The following description of our common shares
is in all respects subject to and qualified by reference to the applicable
provisions of our declaration of trust and our bylaws.

Our common shares possess ordinary voting rights for the election of trust
managers and in respect of other trust matters, each share entitling the holder
thereof to one vote. Holders of common shares do not have cumulative voting
rights in the election of trust managers. The board of trust managers may
declare dividends on common shares in its discretion if funds are legally
available for those purposes. On liquidation, common shareholders are entitled
to receive pro rata any of our remaining assets, after we satisfy or provide for
the satisfaction of all liabilities and obligations on our preferred shares, if
any. Common shareholders do not have conversion, redemption or preemptive rights
to subscribe for or purchase any of our capital shares or any of our other
securities.

PREFERRED SHARES

General. Under our declaration of trust, our board of trust managers is
authorized to determine for each series of preferred shares, and the prospectus
supplement shall set forth with respect to each series that may be issued and
sold pursuant hereto:

- the designation of such shares and the number of shares that
constitute such series;

- the dividend rate (or the method of calculation thereof), if
any, on the shares of such series and the priority as to the
payment of dividends with respect to other classes or series
of Weingarten capital shares;

- the dividend periods (or the method of calculation thereof);

- the voting rights of the shares;

- the liquidation preference and the priority as to payment
of such liquidation preference with respect to other classes or
series of capital shares of Weingarten and any other rights of
the shares of such series upon liquidation or winding-up
of Weingarten;

- whether or not and on what terms the shares of such series will
be subject to redemption or repurchase at the option of
Weingarten;

- whether and on what terms the shares of such series will be
convertible into or exchangeable for other debt or equity
securities of Weingarten which have been registered under
the registration statement of which this prospectus
constitutes a part thereof;

- whether the shares of such series of preferred shares will
be listed on a securities exchange;

- any special United States federal income tax considerations
applicable to such series; and

- the other rights and privileges and any qualifications,
limitations or restrictions of such rights or privileges of such
series not inconsistent with our declaration of trust, our bylaws
and the Texas Real Estate Investment Trust Act.

Convertibility. No series of preferred shares that may be issued
and sold pursuant hereto will be convertible into or exchangeable for other
securities or property, except as set forth in the applicable prospectus
supplement which will set forth the terms and conditions upon which such
conversion or exchange may be effected, including the initial conversion or
exchange rate and any adjustments thereto, the conversion or exchange period and
any other conversion or exchange provisions.

Dividends. Holders of preferred shares shall be entitled to receive, when
and as declared by our board of trust managers, out of funds legally available
therefor, an annual cash dividend payable at such dates and such rates, if any,
per share per annum as set forth in the applicable prospectus supplement.

Unless otherwise set forth in the applicable prospectus supplement, each
series of preferred shares that may be issued and sold pursuant hereto, will
rank junior as to dividends to any preferred shares that may be issued in the
future that is expressly senior as to dividends to the preferred shares. If at
any time Weingarten has failed to pay accrued dividends on any such senior
shares at the time such dividends are payable, Weingarten may not pay any
dividend on the preferred shares or redeem or otherwise repurchase preferred
shares until such accumulated but unpaid dividends on such senior shares have
been paid or set aside for payment in full by Weingarten.

Unless otherwise set forth herein or in the applicable prospectus
supplement relating to any class or series of preferred shares that may be
issued and sold pursuant hereto, no dividends shall be declared or set aside for
payment nor shall any other distribution be declared or made upon the common

shares, or any other capital shares of Weingarten ranking junior to or on a
parity with the preferred shares with such series as to dividends, nor shall any
common shares or any other capital shares of Weingarten ranking junior to or on
a parity with the preferred shares with such series as to dividends or upon
liquidation be redeemed, purchased or otherwise acquired for any consideration
(or any monies be paid to or made available for a sinking fund for the
redemption of any shares by Weingarten (except by conversion into or exchange
for other capital shares of Weingarten ranking junior to the preferred shares of
such series as to dividends and upon liquidation)) unless

- if such series of preferred shares has a cumulative dividend,
full cumulative dividends on the preferred shares of such series have
been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof set apart for all past dividend
periods and the then current dividend period; and

- if such series of preferred shares does not have a cumulative
dividend, full dividends on the preferred shares of such series have
been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof set apart for payment for the then
current dividend period;

provided, however, that any monies theretofore deposited in any sinking fund
with respect to any preferred shares in compliance with the provisions of such
sinking fund may thereafter be applied to the purchase or redemption of such
preferred shares in accordance with the terms of such sinking fund, regardless
of whether at the time of such application full cumulative dividends upon
preferred shares outstanding on the last dividend payment date shall have been
paid or declared and set apart for payment; and provided, further, that any such
junior or parity preferred shares or common shares may be converted into or
exchanged for shares of Weingarten ranking junior to the preferred shares as to
dividends.

The amount of dividends payable for the initial dividend period or any
period shorter than a full dividend period shall be computed on the basis of a
360-day year or twelve 30-day months. Accrued but unpaid dividends will not
bear interest.

Redemption and Sinking Fund. No series of preferred shares that may be
issued and sold pursuant hereto will be redeemable or be entitled to receive the
benefit of a sinking fund, except as set forth in the applicable prospectus
supplement, which will set forth the terms and conditions thereof, including the
dates and redemption price of any such redemption, any conditions thereto, and
any other redemption or sinking fund provisions.

Liquidation Rights. In the event of our voluntary liquidation, dissolution
or winding-up, the holders of any series of any class of preferred shares shall
be entitled to receive in full out of our assets, including our capital, before
any amount shall be paid or distributed among the holders of the common shares
or any other shares ranking junior to such series, the amounts fixed by our
board of trust managers with respect to such series and set forth in the
applicable prospectus supplement. In addition, each holder will receive an
amount equal to all dividends accrued and unpaid on that series of preferred
shares to the date of payment of the amount due pursuant to our liquidation,
dissolution or winding-up. However, holders of noncumulative preferred shares
will only receive dividends for the current dividend period. After holders of
the preferred shares are paid the full preferential amounts to which they are
entitled, they will have no right or claim to any of our remaining assets. If
liquidating distributions are made in full to all holders of preferred shares,
our remaining assets will be distributed among the holders of any other classes
or series of capital shares ranking junior to the preferred shares upon
liquidation, dissolution or winding-up. The distributions will be made according
to the holders' respective rights and preferences and, in each case, according
to their respective numbers of shares. Our merger or consolidation into or with
any other corporation, or the sale, lease or conveyance of all or substantially
all of our assets, shall not constitute a dissolution, liquidation or winding-
up.

Voting Rights. Holders of preferred shares will not have any voting rights,
except as follows and as from time to time required by law. If and when we are
in default in the payment of (or, with respect to noncumulative shares, have not
paid or declared and set aside a sum sufficient for the payment of) dividends on
any series of any class of outstanding preferred shares, for consecutive
dividend payment periods which in the aggregate contain at least 540 days, all
holders of shares of such class, voting separately as a class, together and
combined with all other preferred shares upon which like voting rights have been
conferred and are exercisable, will be entitled to elect a number of trust
managers set forth in the applicable prospectus supplement. This voting right
shall be vested and any additional trust managers shall serve until all accrued
and unpaid dividends (except, with respect to noncumulative shares, only
dividends for the then current dividend period) on such outstanding preferred
shares have been paid or declared and a sufficient sum set aside for payment
thereof.

The affirmative vote of the holders of at least 66 2/3% of a class of
outstanding preferred shares, voting separately as a class, shall be necessary
to effect either of the following:

- the authorization, creation or increase in the authorized number of
any shares, or any security convertible into shares, senior to such
class of preferred shares; or

- any amendment, alteration or repeal, whether by merger, consolidation
or otherwise, of any of the provisions of our declaration of trust
which adversely and materially affects the preferences or voting or
other rights of the holders of such class of preferred shares which
are set forth in the our declaration of trust. However, the amendment
of the declaration of trust to authorize, create or change the
authorized or outstanding number of a class of preferred shares or of
any shares ranking on a parity with or junior to such class of
preferred shares does not adversely and materially affect preferences
or voting or other rights of the holders of such class of preferred
shares. In addition, amending the declaration of trust to change the
number or classification of our trust managers does not adversely or
materially affect preferences or voting rights or other rights.
Voting shall be done in person at a meeting called for one of
the above purposes or in writing by proxy.

Without limiting the provisions described above, under the Texas REIT Act,
unless otherwise such authority is granted to the trust managers under our
declaration of trust, holders of each class of preferred shares will be entitled
to vote as a class on any amendment to the declaration of trust, whether or not
they are entitled to vote thereon by the declaration of trust, if the amendment
would

(1) increase or decrease the aggregate number of authorized shares of such
class or series;

(2) increase or decrease the par value of the shares of such class,
including changing shares having a par value into shares without par value, or
shares without par value into shares with par value;

(3) effect an exchange, reclassification, or cancellation of all or part of
the shares of such class or series;

(4) effect an exchange or create a right of exchange of all or any part of
the shares of another class into the shares of such class or series;

(5) change the designations, preferences, limitations, or relative rights
of the shares of such class or series;

(6) change the shares of such class or series, whether with or without par
value, into the same or a different number of shares, either with or without par
value, of the same class or series or another class or series;

(7) create a new class or series of shares having rights and preferences
equal, prior, or superior to the shares of the class or series, or increase the
rights and preferences of any class or series having rights and preferences
equal, prior, or superior to the shares of the class or series, or increase the
rights and preferences of any class or series having rights or preferences later
or inferior to the shares of the class or series in such a manner as to become
equal, prior, or superior to the shares of the class or series;

(8) divide the shares of the class into series and fix and determine the
designation of the series and the variations in the relative rights and
preferences between the shares of the series;

(9) limit or deny the existing preemptive rights of the shares of the class
or series, if the rights have previously been granted pursuant to the Texas REIT
Act; or

(10) cancel or otherwise affect dividends on the shares of the class or
series that had accrued but had not been declared.

DEPOSITARY SHARES

We may issue receipts for depositary shares, each of which will represent a
fractional interest of a particular series of a class of preferred shares, as

specified in the applicable prospectus supplement. The preferred shares of each
series represented by depositary shares will be deposited under a separate
deposit agreement among us, the depositary named in the deposit agreement and
the holders of the depositary receipts. Immediately following our issuance and
delivery of the preferred shares to the depositary, we will cause the depositary
to issue, on our behalf, the depositary receipts. Subject to the terms of the
applicable depositary agreement, each owner of a depositary receipt will be
entitled, in proportion to the fractional interest of a share of a particular
series of a preferred shares represented by the depositary shares evidenced by
the depositary receipts, to all the rights and preferences of the preferred
shares represented by the depositary shares (including dividend, voting,
conversion, redemption and liquidation rights ) as designated by our board of
trust managers.

The summary of our depositary shares set forth below is not complete. You
should refer to the applicable prospectus supplement, provisions of the deposit
agreement and the depositary receipts that will be filed with the SEC as part of
the offering of any depositary shares. To obtain copies of these documents, see
"Where You Can Find More Information" on page 32.

Dividends and Other Distributions. The depositary will distribute all cash
dividends or other cash distributions received on behalf of the preferred shares
proportionately to the record holders of the related depositary receipts owned
by such holder. Such distributions are subject to certain obligations of holders
to file proofs, certificates and other information and to pay certain charges
and expenses to the depositary.

In the event of a non-cash distribution, the depositary will distribute
property it receives to the record holders of depositary receipts entitled to
the property unless the depositary determines that it is not feasible to make
such distribution, in which case the depositary may, with our approval, sell
such property and distribute the net proceeds of such sale to holders. Such
distributions by the depositary are subject to certain obligations of holders to
file proofs, certificates and other information and to pay certain changes and
expenses to the depositary.

Withdrawal of Shares. Unless the related depositary shares have previously
been called for redemption, upon surrender of the depositary receipts at the
corporate trust office of the depositary, the holders thereof will be entitled
to delivery at such office, to or upon such holder's order, of the number of
whole or fractional preferred shares and any money or other property represented
by the depositary shares evidenced by such depositary receipts. Holders of
depositary receipts will be entitled to receive whole or fractional shares of
the related preferred shares on the basis of the proportion of preferred shares
represented by each depositary share as specified in the applicable prospectus
supplement, but holders of such preferred shares will not thereafter be entitled
to receive depositary shares therefor. If the depositary receipts delivered by
the holder evidence a number of depositary shares in excess of the number of
depositary shares representing the preferred shares to be withdrawn, the
depositary will deliver to such holder at the same time a new depositary receipt
evidencing such excess number of depositary shares.

Redemption. Whenever we redeem preferred shares held by the depositary,
the depositary will redeem as of the same redemption date the number of
depositary shares representing the preferred shares so redeemed, provided we
have paid in full to the depositary the redemption price of the preferred shares
to be redeemed plus an amount equal to any accrued and unpaid dividends thereon
to the date fixed for redemption. With respect to noncumulative preferred
shares, dividends will be paid for the current dividend period only. The
redemption price per depositary share will be equal to the redemption price and
any other amounts per share payable with respect to the preferred shares. If
less than all the depositary shares are to be redeemed, the depositary shares to
be redeemed will be selected by the depositary by lot.

After the date fixed for redemption, the depositary shares called for
redemption will no longer be deemed to be outstanding and all rights of the
holders of the depositary receipts evidencing the depositary shares called for
redemption will cease. However, the holders will have the right to receive any
moneys payable upon redemption and any money or other property that the holders
of such depositary receipts were entitled to at the time of redemption when they
surrender their depositary receipts to the depositary.

Voting Rights. Upon receipt of notice of any meeting at which the holders
of the preferred shares are entitled to vote, the depositary will mail the
information contained in such notice to the record holders of the depositary
receipts related to such preferred shares. Each record holder of depositary
receipts on the record date will be entitled to instruct the depositary as to
the exercise of the voting rights of the preferred shares related to such
holder's depositary receipts. The record date for depositary receipts will be
the same date as the record date for preferred shares. The depositary will vote
the preferred shares related to such depositary receipts in accordance with such
instructions, and we will agree to take all reasonable action that the
depositary deems necessary to enable it to vote the preferred shares. The

depositary will abstain from voting preferred shares represented by such
depositary shares to the extent it does not receive specific instructions from
the holders of depositary receipts.

Liquidation Preference. In the event of our liquidation, dissolution or
winding-up, whether voluntary or involuntary, each holder of a depositary
receipt will be entitled to the fraction of the liquidation preference accorded
each preferred share represented by the depositary share evidenced by such
depositary receipt, as set forth in the applicable prospectus supplement.

Conversion of Preferred Shares. The depositary shares, as such, are not
convertible into common shares or any of our other securities or property.
Nevertheless, if so specified in the applicable prospectus supplement relating
to an offering of depositary shares, the depositary receipts may be surrendered
by holders thereof to the depositary with written instructions to the depositary
to instruct us to cause conversion of the preferred shares represented by the
depositary shares into whole common shares, other preferred shares or other
shares of capital shares. We have agreed that upon receipt of such instructions
and any amounts payable in respect thereof, we will cause the conversion thereof
utilizing the same procedures as those provided for delivery of preferred shares
to effect such conversion. If the depositary shares evidenced by a depositary
receipt are to be converted in part only, one or more new depositary receipts
will be issued for any depositary shares not to be converted. No fractional
common shares will be issued upon conversion. If conversion will result in a
fractional share being issued, we will pay in cash an amount equal to the value
of the fractional interest based upon the closing price of the common shares on
the last business day prior to the conversion.

Amendment and Termination of the Deposit Agreement. The form of depositary
receipt evidencing the depositary shares which represent the preferred shares
and any provision of the deposit agreement may at any time be amended by
agreement between the depositary and us. However, any amendment that materially
and adversely alters the rights of the holders of depositary receipts will not
be effective unless it has been approved by the existing holders of at least a
majority of the depositary shares evidenced by outstanding depositary receipts.

We may terminate the deposit agreement upon not less than 30 days' prior
written notice to the depositary if (1) such termination is to preserve our
status as a REIT or (2) a majority of each class of preferred shares affected by
such termination consents to such termination. Upon termination of the deposit
agreement, the depositary shall deliver or make available to each holder of
depositary receipts, upon surrender of the depositary receipts held by such
holder, such number of whole or fractional preferred shares as are represented
by the depositary shares evidenced by such depositary receipts. In addition, the
deposit agreement will automatically terminate if:

- all outstanding depositary shares have been redeemed;

- there has been a final distribution in respect of the related
preferred shares in connection with any liquidation, dissolution or
winding-up and such distribution has been distributed to the holders
of depositary receipts evidencing the depositary shares representing
such preferred shares; or

- each related preferred share shall have been converted into capital
shares that are not represented by depositary shares.

Fees of depositary. We will pay all transfer and other taxes and
governmental charges arising solely from the existence of the deposit agreement.
In addition, we will pay the fees and expenses of the depositary in connection
with the performance of its duties under the deposit agreement. However, holders
of depositary receipts will pay the depositary's fees and expenses for any
duties that holders request to be performed which are outside those expressly
provided for in the deposit agreement.

Resignation and Removal of depositary. The depositary may resign at any
time by delivering to us notice of its resignation, and we may remove the
depositary at any time. Any such resignation or removal will take effect upon
the appointment of a successor depositary. A successor depositary must be
appointed within 60 days after delivery of the notice of resignation or removal.
A successor depositary must be a bank or trust company having its principal
office in the United States and having a combined capital and surplus of at
least $50,000,000.

Miscellaneous. The depositary will forward to holders of depositary

receipts any reports and communications from us which it receives with respect
to the related preferred shares. Neither us nor the depositary will be liable
if it is prevented from or delayed in, by law or any circumstances beyond its
control, performing its obligations under the deposit agreement. The obligations
of us and the depositary under the deposit agreement will be limited to
performing their duties thereunder in good faith and without negligence, gross
negligence or willful misconduct. Weingarten and the depositary will not be
obligated to prosecute or defend any legal proceeding in respect of any
depositary receipts, depositary shares or preferred shares represented thereby
unless satisfactory indemnity is furnished. Weingarten and the depositary may
rely on written advice of counsel or accountants, or information provided by
persons presenting preferred shares represented thereby for deposit, holders of
depositary receipts or other persons believed to be competent to give such
information, and on documents believed to be genuine and signed by a proper
party.

If the depositary shall receive conflicting claims, requests or
instructions from any holders of depositary receipts, on the one hand, and us,
on the other hand, the depositary shall be entitled to act on such claims,
requests or instructions received from us.

RESTRICTIONS ON OWNERSHIP

In order for us to qualify as a REIT under the Internal Revenue Code, not
more than 50% in value of our outstanding capital shares may be owned, directly
or indirectly, by five or fewer individuals during the last half of a taxable
year. In addition, our capital shares must be beneficially owned by 100 or more
persons during at least 335 days of a taxable year of 12 months, or during a
proportionate part of a shorter taxable year. For purposes of restrictions on
ownership, "capital shares" means our common shares and any securities
convertible into common shares.

Because the board believes it is essential for us to continue to qualify as
a REIT, our declaration of trust generally provides that no holder may own, or
be deemed to own by virtue of the attribution provisions of the Internal Revenue
Code, more than 9.8% of our total outstanding capital shares. Any transfer of
shares will not be valid if it would:

- create a direct or indirect ownership of shares in excess of 9.8%
of our total outstanding capital shares;

- result in shares being owned by fewer than 100 persons;

- result in our being "closely held" within the meaning of Section
856(h) of the Internal Revenue Code; or

- result in our disqualification as a REIT.

Shares in excess of 9.8% of our total outstanding capital shares will
automatically be deemed to be transferred to us as trustee of a trust for the
exclusive benefit of the transferees to whom those shares may ultimately be
transferred without violating the 9.8% ownership limit. While in trust, these
shares will not be entitled to vote (except as required by law), and will not be
entitled to participate in dividends or other distributions. These shares would
be treated as if offered to us for sale at a price equal to the lesser of the
price paid for the shares and the market price of the shares on the date we
accept the offer to purchase the shares. We have the right to purchase the
shares for 90 days after the transfer of shares which resulted in a shareholder
owning in excess of 9.8% of our total outstanding shares or the date our trust
managers determine that a transfer resulting in a shareholder owning in excess
of 9.8% of our outstanding shares has occurred. All certificates representing
capital shares will bear a legend referring to the restrictions described above.

These restrictions on ownership may have the effect of precluding the
acquisition of control unless our board of trust managers and shareholders
determine that maintenance of REIT status is no longer in our best interests.

BUSINESS COMBINATIONS

Our declaration of trust requires that except in certain circumstances, a
business combination between us and a related person must be approved by the

affirmative vote of the holders of not less than 80% of our outstanding common
shares, including the affirmative vote of the holders of not less than 50% of
the outstanding common shares not owned by the related person. However, the 50%
voting requirement is not applicable if the business combination is approved by
the affirmative vote of the holders of not less than 90% of our outstanding
common shares. Our declaration of trust provides that a "business combination"
is:

(1) any merger or consolidation, if and to the extent permitted by law, of
us or our subsidiary, with or into a related person;

(2) any sale, lease, exchange, mortgage, pledge, transfer or other
disposition of more than 35% of the book value of the total assets of us and our
subsidiaries (taken as a whole) as of the end of the fiscal year ending prior to
the time the determination is being made, to or with a related person;

(3) the issuance or transfer by us or our subsidiary (other than by way of
a pro rata distribution to all shareholders) of any securities by us or our
subsidiary to a related person;

(4) any reclassification of securities (including any reverse share split)
or recapitalization by us, the effect of which would be to increase the voting
power of the related person;

(5) the adoption of any plan or proposal for the liquidation or dissolution
of us proposed by or on behalf of a related person which involves any transfer
of assets, or any other transaction, in which the related person has any direct
or indirect interest (except proportionally as a shareholder);

(6) any series or combination of transactions having, directly or
indirectly, the same or substantially the same effect as any of the foregoing;
and

(7) any agreement, contract or other arrangement providing, directly or
indirectly, for any of the foregoing.

A "related person" generally is defined in the declaration of trust to
include any individual, corporation, partnership or other person and the
affiliates and associates of any such individual, corporation, partnership or
other person which individually or together is the beneficial owner in the
aggregate of more than 50% of our outstanding common shares.

The 80% and 50% voting requirements outlined above will not apply, however,
if:

(1) the trust managers by a vote of not less than 80% of the trust managers
then holding office (a) have expressly approved in advance the acquisition
of our common shares that caused the related person to become a related
person or (b) have expressly approved the business combination prior to the
date on which the related person involved in the business combination shall
have become a related person; or

(2) the business combination is solely between us and another corporation,
100% of the voting stock of which is owned directly or indirectly by us; or

(3) the business combination is proposed to be consummated within one year
of the consummation of a fair tender offer (as defined in the declaration
of trust) by the related person in which the business combination, the cash
or fair market value of the property, securities or other consideration to
be received per share by all remaining holders of our common shares in the
business combination is not less than the price offered in the fair tender
offer;

(4) all of the following conditions shall have been met:

(a) the business combination is a merger or consolidation, the
consummation of which is proposed to take place within one year of the date
of the transaction pursuant to which such person became a related person
and the cash or fair market value of the property, securities or other
consideration to be received per share by all remaining holders of common
shares in the business combination is not less than the highest per-share
price, with appropriate adjustments for recapitalizations and for share
splits and share dividends, paid by the related person in acquiring any of
its holdings of our common shares, which shall constitute a "fair price;"

(b) the consideration to be received by such holders is either
cash or, if the related person shall have acquired the majority of its
holdings of our common shares for a form of consideration other than cash,
in the same form of consideration with which the related person acquired
such majority;

- there shall have been no reduction in the annual rate
of dividends, if any, paid per share on our common shares
(adjusted as appropriate for recapitalizations and for
share splits, reverse share splits and share dividends),
except any reduction in such rate that is made
proportionately with any decline in our net income for the
period for which such dividends are declared and except
as approved by a majority of the trust managers continuing
in office; and

- such related person shall not have received the benefit,
directly or indirectly (except proportionately as a
shareholder), of any loans, advances, guarantees, pledges
or other financial assistance or any tax credits or other
tax advantages provided by us prior to the consummation of
such business combination (other than in connection with
financing a fair tender offer); and

(d) proxy statement that conforms in all respects with the
provisions of the Securities Exchange Act of 1934, as amended, and the
rules and regulations thereunder shall be mailed to holders of our common
shares at least 30 days prior to the consummation of the business
combination for the purpose of soliciting shareholder approval of the
business combination; or

(5) the "rights" (as defined below) shall have become exercisable.

If a person has become a related person and within one year after the date
of the transaction pursuant to which the related person became a related person,
which shall be considered as the "acquisition date,"

(1) a business combination meeting all of the requirements of paragraphs
(4)(a)(b)(c) and (d) above regarding the applicability of the 80% voting
requirement shall not have been consummated;

(2) a fair tender offer shall not have been consummated; and

(3) we have not been dissolved and liquidated,

then, in such event the beneficial owner of each common share (not including
shares beneficially owned by the related person) shall have the right (each a
"right" and collectively the "rights") which may be exercised subject to certain
conditions, commencing at the opening of business on the one-year anniversary
date of the acquisition date and continuing for a period of 90 days thereafter,
subject to certain extensions, to sell to us on the terms set forth herein one
share upon exercise of such right. At 5:00 P.M., Houston, Texas time, on the
last day of the exercise period, each right not exercised shall become void, all
rights in respect thereof shall cease as of such time and the certificates shall
no longer represent rights.

DESCRIPTION OF SECURITIES WARRANTS

We may issue securities warrants for the purchase of debt securities,
preferred shares or common shares. We may issue securities warrants
independently or together with debt securities, preferred shares or common
shares or attached to or separate from the offered securities. We will issue
each series of securities warrants under a separate warrant agreement between us
and a bank or trust company as warrant agent, as specified in the applicable
prospectus supplement.

The warrant agent will act solely as our agent in connection with the
securities warrants and will not act for or on behalf of securities warrant
holders. The following sets forth certain general terms and provisions of the
securities warrants that may be offered under this registration statement.
Further terms of the securities warrants and the applicable warrant agreements
will be set forth in the applicable prospectus supplement.

The applicable prospectus supplement will describe the terms of the
securities warrants in respect of which this prospectus being delivered,
including, where applicable, the following:

- the title of such securities warrants;

- the aggregate number of such securities warrants;

- the price or prices at which such securities warrants will be issued;

- the type and number of securities purchasable upon exercise of such
securities warrants;

- the designation and terms of the other offered securities, if any,
with which such securities warrants are issued and the number of such
securities warrants issued with each such offered security;

- the date, if any, on and after which such securities warrants and
the related securities will be separately transferable;

- the price at which each security purchasable upon exercise of such
securities warrants may be purchased;

- the date on which the right to exercise such securities warrants
shall commence and the date on which such right shall expire;

- the minimum or maximum amount of such securities warrants that
may be exercised at any one time;

- information with respect to book-entry procedures, if any;

- a discussion of certain federal income tax considerations; and

- any other terms of such securities warrants, including terms,
procedures and limitations relating to the exercise and exchange
of such securities warrants.

Warrant certificates will be exchangeable for new warrant certificates of
different denominations and warrants may be exercised at the corporate trust
office of the warrant agent or any other office indicated in the applicable
prospectus supplement. Prior to the exercise of their warrants, holders of
warrants will not have any of the rights of holders of the securities
purchasable upon such exercise and will not be entitled to payment of principal
of (or premium, if any) or interest, if any, on the debt securities of
Weingarten purchasable upon such exercise or to any dividend payments or voting
rights as to which holders of the preferred shares or common shares purchasable
upon such exercise may be entitled.

Each warrant will entitle the holder to purchase for cash such principal
amount of debt securities of Weingarten, or such number of preferred shares or
common shares, at such exercise price as shall, in each case, be set forth in,

or be determinable as set forth in, the applicable prospectus supplement
relating to the warrants offered thereby. Unless otherwise specified in the
applicable prospectus supplement, warrants may be exercised at any time up to
5:00 p.m. New York City time on the expiration date set forth in applicable
prospectus supplement. After 5:00 p.m. time on the expiration date, unexercised
warrants will become void.

Warrants may be exercised as set forth in the applicable prospectus
supplement relating to the warrants. Upon receipt of payment and the warrant
certificate properly completed and duly executed at the corporate trust office
of the warrant agent or any other office indicated in the applicable prospectus
supplement, Weingarten will, as soon as practicable, forward the securities
purchasable upon such exercise. If less than all of the warrants are presented
by such warrant certificate of exercise, a new warrant certificate will be
issued for the remaining amount of warrants.

DESCRIPTION OF OTHER CLASSES OF OUTSTANDING SHARES

7.44% SERIES A CUMULATIVE REDEEMABLE PREFERRED SHARES

On February 19, 1998, we issued 3,000,000 shares of 7.44% Series A
Cumulative Redeemable Preferred Shares for $75.0 million. The Series A
Preferred has a liquidation preference of $25.00 pre share and the holders are
entitled to cumulative dividends from the date of original issuance of $1.86 per
share per year. We may not redeem the shares before March 31, 2003 and
thereafter, the shares may be redeemed solely from the proceeds of an offering
of our capital shares. The redemption price per share is $25.00, plus any
accrued and unpaid dividends through the date of such redemption. The shares
have no maturity date and will remain outstanding indefinitely unless redeemed.
The shares are not convertible into any of our other securities. The Series A
Preferred shareholders generally have no voting rights, except if we fail to pay
dividends for six quarters. In that event, the holders of the Series A
Preferred, Series B Preferred and Series C Preferred, voting together as a
single class, have the right to elect two trust managers who shall serve until
all dividend arrearages have been paid.

The Series A Preferred is listed for trading on the New York Stock
Exchange.

7.125% SERIES B CUMULATIVE REDEEMABLE PREFERRED SHARES

On October 20, 1998, we issued 3,600,000 of 7.125% Series B Cumulative
Redeemable Preferred Shares for $90.0 million. Except with respect to the
description of the dividend rate and the redemption rights upon the death of a
holder of Series B Preferred, the terms of the Series B Preferred are
substantially identical to the terms of the Series A Preferred. The Series B
Preferred ranks on parity with the Series A Preferred with respect to the
payment of dividends and payments upon liquidation. The holders of the Series B
Preferred are entitled to cumulative dividends from the date of original
issuance of $1.78 per share per year. We may not redeem the shares before
October 20, 2003.

Commencing December 15, 1998, on March 15, June 15, September 15 and
December 15 of each year, we will, upon the death of any registered holder of
the Series B Preferred, redeem such shares held by the registered owner upon
presentation of appropriate documentation by such registered owner's personal
representative or surviving joint tenant. Our obligation to redeem the shares
is subject to the following limitations:

- We will only redeem 1,000 shares per owner per year.

- During the first 10 years, in any one year, we will only redeem
up to108,000 shares.

- During years 11 through 20, in any one year, we will only redeem
up to 72,000 shares.

- After year 20, we will only redeem up to 36,000 shares each year.

- The yearly redemption limitations listed above are cumulative. The
difference, if any, between that year's redemption limitation and
the amount actually redeemed in such year will be available for
redemption in later years, subject to an overall redemption
limitation of 108,000 shares per year.

- We will redeem shares only four times each year subject to the
following cumulative limitations:

March 15 - up to 27,000 shares;
June 15 - up to 54,000 shares;
September 15 - up to 81,000 shares; and
December 15 - up to 108,000 shares.

The Series B Preferred is not listed for trading on any exchange.

7.00% SERIES C CUMULATIVE REDEEMABLE PREFERRED SHARES

On January 14, 1999, we issued 2,300,000 shares of 7.00% Series C
Cumulative Redeemable Preferred Shares for $115.0 million. Except with respect
to the description of the liquidation preference, dividend rate and the
redemption date of the Series C Preferred, the terms of the Series C Preferred
are substantially identical to the terms of the Series A Preferred and Series B
Preferred. The Series C Preferred ranks on parity with the Series A Preferred
and Series B Preferred with respect to the payment of dividends and payments
upon liquidation. The Series C Preferred has a liquidation preference of $50.00
per share and the holders are entitled to cumulative dividends from the date of
original issuance of $3.50 per share per year. We may not redeem the shares
before March 15, 2004. The redemption price per share is $50.00, plus any
accrued and unpaid dividends through the date of such redemption. Commencing
March 15, 1999, upon the death of any registered owner of this Series C
Preferred, we will redeem such shares held by such registered owner upon
presentation of appropriate documentation by the registered owner's personal
representative or surviving joint tenant. Our obligation to redeem the shares
is subject to the following limitations:

- We will only redeem 500 shares per owner per year.

- During the first 10 years, in any one year, we will only redeem
upon to 69,000 shares.

- During years 11 through 20, in any one year, we will only redeem
up to 46,000 shares.

- After year 20, we will only redeem up to 23,000 shares per year.

- The above yearly redemption limitations are cumulative. The
difference, if any, between that year's redemption limitation and
and the amount actually redeemed in such year will be available for
redemption in later years, subject to an overall redemption
limitation of 69,000 shares per year.

- We will redeem shares only four times each year subject to the
following cumulative limitations:

March 15 - up to 17,500 shares;
June 15 - up to 34,500 shares;
September 15 - up to 51,750 shares; and
December 15 - up 69,000 shares.

The Series C Preferred is listed for trading on the New York Stock
Exchange.

FEDERAL INCOME TAX CONSEQUENCES

GENERAL

The following summary of material federal income tax consequences that may
be relevant to a holder of our securities is based on current law, is for
general information only and is not intended as tax advice. The following
discussion, which is not exhaustive of all possible tax consequences, does not
include a detailed discussion of any state, local or foreign tax consequences.
Nor does it discuss all of the aspects of federal income taxation that may be
relevant to a prospective holder of our securities in light of his or her
particular circumstances or to certain types of holders (including insurance
companies, tax-exempt entities, financial institutions or broker-dealers,
foreign corporations and persons who are not citizens or residents of the United
States and persons holding securities as part of a conversion transaction, a

hedging transaction or as a position in a straddle for tax purposes) who are
subject to special treatment under the federal income tax laws.

The statements in this discussion are based on current provisions of the
Internal Revenue Code existing, temporary and currently proposed Treasury
Regulations under the Internal Revenue Code, the legislative history of the
Internal Revenue Code, existing administrative rulings and practices of the IRS
and judicial decisions. No assurance can be given that legislative, judicial or
administrative changes will not affect the accuracy of any statements in this
discussion with respect to transactions entered into or contemplated prior to
the effective date of such changes. Any such change could apply retroactively to
transactions preceding the date of the change. We do not plan to request any
rulings from the IRS concerning our tax treatment and the statements in this
discussion are not binding on the IRS or any court. Thus, we can provide no
assurance that these statements will not be challenged by the IRS or that such
challenge will not be sustained by a court.

THIS DISCUSSION IS NOT INTENDED AS A SUBSTITUTE FOR CAREFUL TAX PLANNING.
EACH PROSPECTIVE PURCHASER OF SECURITIES IS ADVISED TO CONSULT WITH HIS OR HER
OWN TAX ADVISOR REGARDING THE SPECIFIC TAX CONSEQUENCES TO HIM OR HER OF THE
PURCHASE, OWNERSHIP AND DISPOSITION OF SECURITIES IN AN ENTITY ELECTING TO BE
TAXED AS A REIT, INCLUDING THE FEDERAL, STATE, LOCAL, FOREIGN AND OTHER TAX
CONSEQUENCES OF SUCH PURCHASE, OWNERSHIP, DISPOSITION AND ELECTION, AND OF
POTENTIAL CHANGES IN APPLICABLE TAX LAWS.

We have elected to be treated as a REIT under Sections 856 through 860 of
the Internal Revenue Code for federal income tax purposes commencing with our
taxable year ended December 31, 1985. We believe that we have been organized and
have operated in a manner that qualifies for taxation as a REIT under the
Internal Revenue Code. We also believe that we will continue to operate in a
manner that will preserve our status as a REIT. We cannot however, assure you
that such requirements will be met in the future.

We have received an opinion from Locke Liddell & Sapp LLP, our legal
counsel, to the effect that we qualified as a REIT under the Internal Revenue
Code for our taxable year ended December 31, 1985 and all years thereafter
through our taxable year ended December 31, 2000 and that our proposed manner of
operation and diversity of equity ownership should enable us to continue to
satisfy the requirements for qualification as a REIT in calendar year 2001 if we
operate in accordance with the methods of operations described herein including
our representations concerning our intended method of operation. However, you
should be aware that opinions of counsel are not binding on the IRS or on the
courts, and, if the IRS were to challenge these conclusions, no assurance can be
given that these conclusions would be sustained in court. The opinion of Locke
Liddell & Sapp LLP is based on various assumptions as well as on certain
representations made by us as to factual matters, including a factual
representation letter provided by us. The rules governing REITs are highly
technical and require ongoing compliance with a variety of tests that depend,
among other things, on future operating results, asset diversification,
distribution levels and diversity of stock ownership. Locke Liddell & Sapp LLP
will not monitor our compliance with these requirements. While we expect to
satisfy these tests, and will use our best efforts to do so, no assurance can be
given that we will qualify as a REIT for any particular year, or that the
applicable law will not change and adversely affect us and our shareholders. See
"-Failure to Qualify as a REIT." The following is a summary of the material
federal income tax considerations affecting us as a REIT and the holders of our
securities. This summary is qualified in its entirety by the applicable Internal
Revenue Code provisions, relevant rules and regulations promulgated under the
Internal Revenue Code, and administrative and judicial interpretations of the
Internal Revenue Code and these rules and regulations.

REIT QUALIFICATION

We must be organized as an entity that would, if we do not maintain our
REIT status, be taxable as a regular corporation. We cannot be a financial
institution or an insurance company. We must be managed by one or more trust
managers. Our taxable year must be the calendar year. Our beneficial ownership
must be evidenced by transferable shares. Our capital shares must be held by at
least 100 persons during at least 335 days of a taxable year of 12 months or
during a proportionate part of a taxable year of less than 12 months. Not more
than 50% of the value of the shares of our capital shares may be held, directly
or indirectly, applying the applicable constructive ownership rules of the
Internal Revenue Code, by five or fewer individuals at any time during the last
half of each of our taxable years. We must also meet certain other tests,
described below, regarding the nature of our income and assets and the amount of
our distributions.

Our outstanding common shares are owned by a sufficient number of investors
and in appropriate proportions to permit us to satisfy these share ownership
requirements. To protect against violations of these share ownership
requirements, our declaration of trust provides that no person is permitted to
own, applying constructive ownership tests set forth in the Internal Revenue
Code, more than 9.8% of our outstanding common shares, unless the trust managers
(including a majority of the independent trust managers) are provided evidence
satisfactory to them in their sole discretion that our qualification as a REIT
will not be jeopardized. In addition, our declaration of trust contains
restrictions on transfers of capital shares, as well as provisions that
automatically convert common shares into excess securities to the extent that
the ownership otherwise might jeopardize our REIT status. These restrictions,
however may not ensure that we will, in all cases, be able to satisfy the share
ownership requirements. If we fail to satisfy these share ownership
requirements, except as provided in the next sentence, our status as a REIT will
terminate. However, if we comply with the rules contained in applicable Treasury
Regulations that require us to ascertain the actual ownership of our shares and
we do not know, or would not have known through the exercise of reasonable
diligence, that we failed to meet the 50% requirement described above, we will
be treated as having met this requirement. See the section below entitled
"-Failure to Qualify as a REIT."

To monitor our compliance with the share ownership requirements, we are
required to and we do maintain records disclosing the actual ownership of our
common shares. To do so, we will demand written statements each year from the
record holders of certain percentages of shares in which the record holders are
to disclose the actual owners of the shares (i.e., the persons required to
include in gross income the REIT dividends). A list of those persons failing or
refusing to comply with this demand will be maintained as part of our records.
Shareholders who fail or refuse to comply with the demand must submit a
statement with their tax returns disclosing the actual ownership of the shares
and certain other information.

We currently satisfy, and expect to continue to satisfy, each of these
requirements discussed above. We also currently satisfy, and expect to continue
to satisfy, the requirements that are separately described below concerning the
nature and amounts of our income and assets and the levels of required annual
distributions.

Sources of Gross Income. In order to qualify as a REIT for a particular
year, we also must meet two tests governing the sources of our income - a 75%
gross income test and a 95% gross income test. These tests are designed to
ensure that a REIT derives its income principally from passive real estate
investments. The Internal Revenue Code allows a REIT to own and operate a number
of its properties through wholly-owned subsidiaries which are "qualified REIT
subsidiaries." The Internal Revenue Code provides that a qualified REIT
subsidiary is not treated as a separate corporation, and all of its assets,
liabilities and items of income, deduction and credit are treated as assets,
liabilities and items of income of the REIT.

In the case of a REIT which is a partner in a partnership or any other
entity such as a limited liability company that is treated as a partnership for
federal income tax purposes, Treasury Regulations provide that the REIT will be
deemed to own its proportionate share of the assets of the partnership. Also,
the REIT will be deemed to be entitled to its proportionate share of the income
of the partnership. The character of the assets and gross income of the
partnership retains the same character in the hands of the REIT for purposes of
Section 856 of the Internal Revenue Code, including satisfying the gross income
tests and the asset tests. Thus, our proportionate share of the assets and items
of income of any partnership in which we own an interest are treated as our
assets and items of income for purposes of applying the requirements described
in this discussion, including the income and asset tests described below.

75% Gross Income Test. At least 75% of a REIT's gross income for each
taxable year must be derived from specified classes of income that principally
are real estate related. The permitted categories of principal importance to us
are:

- rents from real property;

- interest on loans secured by real property;

- gains from the sale of real property or loans secured by real
property (excluding gain from the sale of property held primarily for
sale to customers in the ordinary course of our business, referred to
below as "dealer property");

- income from the operation and gain from the sale of property acquired
in connection with the foreclosure of a mortgage securing that
property ("foreclosure property");

- distributions on, or gain from the sale of, shares of other
qualifying REITs;

- abatements and refunds of real property taxes;

- amounts received as consideration for entering into agreements to
make loans secured by real property or to purchase or lease real
property; and

- "qualified temporary investment income" (described below).

In evaluating our compliance with the 75% gross income test, as well as the
95% gross income test described below, gross income does not include gross
income from "prohibited transactions." In general, a prohibited transaction is
one involving a sale of dealer property, not including foreclosure property and
not including certain dealer property we have held for at least four years.

We expect that substantially all of our operating gross income will be
considered rent from real property and interest income. Rent from real property
is qualifying income for purposes of the gross income tests only if certain
conditions are satisfied. Rent from real property includes charges for services
customarily rendered to tenants, and rent attributable to personal property
leased together with the real property so long as the personal property rent is
not more than 15% of the total rent received or accrued under the lease for the
taxable year. We do not expect to earn material amounts in these categories.

Rent from real property generally does not include rent based on the income
or profits derived from the property. However, rent based on a percentage of
gross receipts or sales is permitted as rent from real property and we will have
leases where rent is based on a percentage of gross receipts or sales. We
generally do not intend to lease property and receive rentals based on the
tenant's income or profit. Also excluded from "rents from real property" is rent
received from a person or corporation in which we (or any of our 10% or greater
owners) directly or indirectly through the constructive ownership rules
contained in Section 318 and Section 856(d)(5) of the Internal Revenue Code, own
a 10% or greater interest.

A third exclusion from qualifying rent income covers amounts received with
respect to real property if we furnish services to the tenants or manage or
operate the property, other than through an "independent contractor" from whom
we do not derive any income or through a "taxable REIT subsidiary." A taxable
REIT subsidiary is a corporation in which a REIT owns stock, directly or
indirectly, and with respect to which the corporation and the REIT have made a
joint election to treat the corporation as a taxable REIT subsidiary. The
obligation to operate through an independent contractor or a taxable REIT
subsidiary generally does not apply, however, if the services we provide are
"usually or customarily rendered" in connection with the rental of space for
occupancy only and are not considered rendered primarily for the convenience of
the tenant (applying standards that govern in evaluating whether rent from real
property would be unrelated business taxable income when received by a
tax-exempt owner of the property). Further, if the gross income from
non-customary services with respect to property is at least 150% of our direct
cost of performing such services and is less than 1% of the total gross income
derived from the property, then the provision of such non-customary services
shall not prohibit the rental income (except the non-customary service income)
from qualifying as "rents from real property."

We believe that the only material services generally to be provided to
tenants will be those usually or customarily rendered in connection with the
rental of space for occupancy only. We do not intend to provide services that
might be considered rendered primarily for the convenience of the tenants, such
as hotel, health care or extensive recreational or social services.
Consequently, we believe that substantially all of our rental income will be
qualifying income under the gross income tests, and that our provision of
services will not cause the rental income to fail to be included under that
test.

Upon the ultimate sale of our properties, any gains realized also are
expected to constitute qualifying income, as gain from the sale of real property
(not involving a prohibited transaction).

95% Gross Income Test. In addition to earning 75% of our gross income from
the sources listed above, 95% of our gross income for each taxable year must
come either from those sources, or from dividends, interest or gains from the
sale or other disposition of stock or other securities that do not constitute
dealer property. This test permits a REIT to earn a significant portion of its
income from traditional "passive" investment sources that are not necessarily
real estate related. The term "interest" (under both the 75% and 95% tests) does
not include amounts that are based on the income or profits of any person,
unless the computation is based only on a fixed percentage of receipts or sales.

Failing the 75% or 95% Tests; Reasonable Cause. As a result of the 75% and
95% tests, REITs generally are not permitted to earn more than 5% of their gross
income from active sources, including brokerage commissions or other fees for
services rendered. We may receive certain types of that income. This type of
income will not qualify for the 75% test or 95% test but is not expected to be
significant and that income, together with other nonqualifying income, is
expected to be at all times less than 5% of our annual gross income. While we do
not anticipate that we will earn substantial amounts of nonqualifying income, if
nonqualifying income exceeds 5% of our gross income, we could lose our status as
a REIT. We may establish taxable REIT subsidiaries to hold assets generating
non-qualifying income. The gross income generated by these subsidiaries would
not be included in our gross income. However, dividends we receive from these
subsidiaries would be included in our gross income and qualify for the 95%
income test.

If we fail to meet either the 75% or 95% income tests during a taxable
year, we may still qualify as a REIT for that year if (1) we report the source
and nature of each item of our gross income in our federal income tax return for
that year, (2) the inclusion of any incorrect information in our return is not
due to fraud with intent to evade tax, and (3) the failure to meet the tests is
due to reasonable cause and not to willful neglect. It is not possible, however,
to state whether in all circumstances we would be entitled to the benefit of
this relief provision. For example, if we fail to satisfy the gross income tests
because nonqualifying income that we intentionally accrue or receive causes us
to exceed the limits on nonqualifying income, the IRS could conclude that our
failure to satisfy the tests was not due to reasonable cause. If these relief
provisions do not apply to a particular set of circumstances, we will not
qualify as a REIT. As discussed below, even if these relief provisions apply,
and we retain our status as a REIT, a tax would be imposed with respect to our
non-qualifying income. We would be subject to a 100% tax based on the greater of
the amount by which we fail either the 75% or 95% income tests for that year.
See "- Taxation as a REIT" on page 26.

Prohibited Transaction Income. Any gain that we realize on the sale of any
property held as inventory or other property held primarily for sale to
customers in the ordinary course of business (including our share of any such
gain realized by any subsidiary partnerships), will be treated as income from a
prohibited transaction that is subject to a 100% penalty tax. This prohibited
transaction income may also adversely affect our ability to satisfy the income
tests for qualification as a REIT. Under existing law, whether property is held
as inventory or primarily for sale to customers in the ordinary course of a
trade or business depends on all the facts and circumstances surrounding the
particular transaction. We intend to hold our and our subsidiary partnerships
intend to hold their properties for investment with a view to long-term
appreciation, to engage in the business of acquiring, developing and owning
properties, and to make occasional sales of the properties as are consistent
with their investment objectives. The IRS may contend, however, that one or more
of these sales is subject to the 100% penalty tax.

Character of Assets Owned. At the close of each calendar quarter of our
taxable year, we also must meet three tests concerning the nature of our
investments. First, at least 75% of the value of our total assets generally must
consist of real estate assets, cash, cash items (including receivables) and
government securities. For this purpose, "real estate assets" include interests
in real property, interests in loans secured by mortgages on real property or by
certain interests in real property, shares in other REITs and certain options,
but excluding mineral, oil or gas royalty interests. The temporary investment of
new capital in debt instruments also qualifies under this 75% asset test, but
only for the one-year period beginning on the date we receive the new capital.
Second, although the balance of our assets generally may be invested without
restriction, other than certain debt securities, we will not be permitted to own
(1) securities of any one non-governmental issuer that represent more than 5% of
the value of our total assets, (2) securities possessing more than 10% of the
voting power of the outstanding securities of any single issuer or (3)
securities having a value of more than 10% of the total value of the outstanding
securities of any one issuer. A REIT, however, may own 100% of the stock of a
qualified REIT subsidiary, in which case the assets, liabilities and items of
income, deduction and credit of the subsidiary are treated as those of the REIT.
A REIT may also own more than 10% of the voting power or value of a taxable REIT
subsidiary. Third, not more than 20% of the value of a REIT's total assets may
be represented by securities of one or more taxable REIT subsidiaries. In

evaluating a REIT's assets, if the REIT invests in a partnership, it is deemed
to own its proportionate share of the assets of the partnership.

After initially meeting the asset tests at the close of any quarter, we
will not lose our status as a REIT for failure to satisfy the asset tests at the
end of a later quarter solely by reason of changes in asset values. If we fail
to satisfy the asset tests because we acquire securities or other property
during a quarter, we can cure this failure by disposing of sufficient
nonqualifying assets within 30 days after the close of that quarter. We intend
to take such action within the 30 days after the close of any quarter as may be
required to cure any noncompliance. If we fail to cure noncompliance with the
asset tests within this time period, we would cease to qualify as a REIT.

Annual Distributions to Shareholders. To maintain our REIT status, we
generally must distribute as a dividend to our shareholders in each taxable year
at least 90% of our net ordinary income. Capital gain is not required to be
distributed. More precisely, we must distribute an amount equal to (1) 90% of
the sum of (a) our "REIT Taxable Income" before deduction of dividends paid and
excluding any net capital gain and (b) any net income from foreclosure property
less the tax on such income, minus (2) certain limited categories of "excess
noncash income," including, income attributable to leveled stepped rents,
cancellation of indebtedness and original issue discount income. REIT Taxable
Income is defined to be the taxable income of the REIT, computed as if it were
an ordinary corporation, with certain modifications. For example, the deduction
for dividends paid is allowed, but neither net income from foreclosure property,
nor net income from prohibited transactions, is included. In addition, the REIT
may carry over, but not carry back, a net operating loss for 20 years following
the year in which it was incurred.

A REIT may satisfy the 90% distribution test with dividends paid during the
taxable year and with certain dividends paid after the end of the taxable year.
Dividends paid in January that were declared during the last calendar quarter of
the prior year and were payable to shareholders of record on a date during the
last calendar quarter of that prior year are treated as paid on December 31 of
the prior year. Other dividends declared before the due date of our tax return
for the taxable year, including extensions, also will be treated as paid in the
prior year if they are paid (1) within 12 months of the end of that taxable year
and (2) no later than our next regular distribution payment. Dividends that are
paid after the close of a taxable year that do not qualify under the rule
governing payments made in January (described above) will be taxable to the
shareholders in the year paid, even though we may take them into account for a
prior year. A nondeductible excise tax equal to 4% will be imposed for each
calendar year to the extent that dividends declared and distributed or deemed
distributed on or before December 31 are less than the sum of (a) 85% of our
"ordinary income" plus (b) 95% of our capital gain net income plus (c) any
undistributed income from prior periods.

To be entitled to a dividends paid deduction, the amount distributed by a
REIT must not be preferential. For example, every shareholder of the class of
shares to which a distribution is made must be treated the same as every other
shareholder of that class, and no class of shares may be treated otherwise than
in accordance with its dividend rights as a class.

We will be taxed at regular corporate rates to the extent that we retain
any portion of our taxable income. For example, if we distribute only the
required 90% of our taxable income, we would be taxed on the retained 10%. Under
certain circumstances we may not have sufficient cash or other liquid assets to
meet the distribution requirement. This could arise because of competing demands
for our funds, or due to timing differences between tax reporting and cash
receipts and disbursements (i.e., income may have to be reported before cash is
received, or expenses may have to be paid before a deduction is allowed).
Although we do not anticipate any difficulty in meeting this requirement, no
assurance can be given that necessary funds will be available. In the event
these circumstances do occur, then in order to meet the 90% distribution
requirement, we may cause our operating partnership to arrange for short-term,
or possibly long-term, borrowings to permit the payment of required dividends.

If we fail to meet the 90% distribution requirement because of an
adjustment to our taxable income by the IRS, we may be able to cure the failure
retroactively by paying a "deficiency dividend," as well as applicable interest
and penalties, within a specified period.

TAXATION AS A REIT

As a REIT, we generally will not be subject to corporate income tax to the
extent we currently distribute our REIT taxable income to our shareholders. This
treatment effectively eliminates the "double taxation" imposed on investments in
most corporations. Double taxation refers to taxation that occurs once at the
corporate level when income is earned and once again at the shareholder level
when such income is distributed. We generally will be taxed only on the portion
of our taxable income that we retain, which will include any undistributed net
capital gain, because we will be entitled to a deduction for dividends paid to
shareholders during the taxable year. A dividends paid deduction is not
available for dividends that are considered preferential within any given class
of shares or as between classes except to the extent that class is entitled to a
preference. We do not anticipate that we will pay any of those preferential
dividends. Because excess shares will represent a separate class of outstanding
shares, the fact that those shares will not be entitled to dividends should not
adversely affect our ability to deduct our dividend payments.

Even as a REIT, we will be subject to tax in certain circumstances as
follows:

- we would be subject to tax on any income or gain from foreclosure
property at the highest corporate rate (currently 35%). Foreclosure
property is generally defined as property acquired through
foreclosure or after a default on a loan secured by the property or a
lease of the property;

- a confiscatory tax of 100% applies to any net income from prohibited
transactions which are, in general, certain sales or other
dispositions of property held primarily for sale to customers in the
ordinary course of business;

- if we fail to meet either the 75% or 95% source of income tests
described above, but still qualify for REIT status under the
reasonable cause exception to those tests, a 100% tax would be
imposed equal to the amount obtained by multiplying (a) the greater
of the amount, if any, by which it failed either the 75% income test
or the 95% income test, times (b) a fraction intended to reflect our
profitability;

- we will be subject to the alternative minimum tax on items
of tax preference, excluding items specifically allocable to our
shareholders;

- if we should fail to distribute with respect to each calendar year at
least the sum of (a) 85% of our REIT ordinary income for that year,
(b) 95% of our REIT capital gain net income for that year, and (c)
any undistributed taxable income from prior years, we would be
subject to a 4% excise tax on the excess of the required
distribution over the amounts actually distributed;

- we also may be taxed at the highest regular corporate tax rate on
any built-in gain attributable to assets that we acquire in certain
tax-free corporate transactions, to the extent the gain is recognized
during the first ten years after we acquire those assets. Built-in
gain is the excess of (a) the fair market value of the asset over (b)
our adjusted basis in the asset, in each case determined as of the
beginning of the ten-year recognition period. The results described
in this paragraph with respect to the recognition of built-in gain
assume that we will make an election that we are permitted to
make; and

- we will be taxed at regular corporate rates on any undistributed
REIT taxable income, including undistributed net capital gains.

As a result of recent legislation, a tax is imposed on a REIT equal to 100%
of redetermined rents, redetermined deductions and excess interest.
Redetermined rents are generally rents from real property which would otherwise
be reduced on distribution, apportionment or allocation to clearly reflect
income as a result of services furnished or rendered by a taxable REIT
subsidiary to tenants of the REIT. There are a number of exceptions with regard
to redetermined rents, which are summarized below.

- Redetermined rents do not include amounts received directly or
indirectly by a REIT for customary services.

- Redetermined rents do not include de minimis payments received by the
REIT with respect to non-customary services rendered to the tenants
of a property owned by the REIT that do not exceed 1% of all amounts
received by the REIT with respect to the property.

- The redetermined rent provisions do not apply with respect to any
services rendered by a taxable REIT subsidiary to the tenants of the
REIT, as long as the taxable REIT subsidiary renders a significant
amount of similar services to persons other than the REIT and to
tenants who are unrelated to the REIT or the taxable REIT subsidiary
or the REIT tenants, and the charge for these services is
substantially comparable to the charge for similar services rendered
to such unrelated persons.

- The redetermined rent provisions do not apply to any services
rendered by a taxable REIT subsidiary to a tenant of a REIT if the
rents paid by tenants leasing at least 25% of the net leasable space
in the REIT's property who are not receiving such services are
substantially comparable to the rents paid by tenants leasing
comparable space who are receiving the services and the charge for
the services is separately stated.

- The redetermined rent provisions do not apply to any services
rendered by a taxable REIT subsidiary to tenants of a REIT if the
gross income of the taxable REIT subsidiary from these services is at
least 150% of the taxable REIT subsidiary's direct cost of rendering
the service.

- The Secretary of the Treasury has the power to waive the tax that
would otherwise be imposed on redetermined rents if the REIT
establishes to the satisfaction of the Secretary that rents charged
to tenants were established on an arm's length basis even though a
taxable REIT subsidiary provided services to the tenants.

Redetermined deductions are deductions, other than redetermined rents, of a
taxable REIT subsidiary if the amount of these deductions would be decreased on
distribution, apportionment or allocation to clearly reflect income between the
taxable REIT subsidiary and the REIT. Excess interest means any deductions for
interest payments made by a taxable REIT subsidiary to the REIT to the extent
that the interest payments exceed a commercially reasonable rate of interest.

FAILURE TO QUALIFY AS A REIT

For any taxable year in which we fail to qualify as a REIT and certain
relief provisions do not apply, we would be taxed at regular corporate rates,
including alternative minimum tax rates on all of our taxable income.
Distributions to our shareholders would not be deductible in computing that
taxable income, and distributions would no longer be required to be made. Any
corporate level taxes generally would reduce the amount of cash available for
distribution to our shareholders and, because the shareholders would continue to
be taxed on the distributions they receive, the net after tax yield to the
shareholders from their investment likely would be reduced substantially. As a
result, failure to qualify as a REIT during any taxable year could have a
material adverse effect on an investment in our common shares. If we lose our
REIT status, unless certain relief provisions apply, we would not be eligible to
elect REIT status again until the fifth taxable year which begins after the
taxable year during which our election was terminated. It is not possible to
state whether in all circumstances we would be entitled to this statutory
relief.

TAXATION OF TAXABLE U.S. SHAREHOLDERS

Except as discussed below, distributions generally will be taxable to
taxable U.S. shareholders as ordinary income to the extent of our current or
accumulated earnings and profits. We may generate cash in excess of our net
earnings. If we distribute cash to shareholders in excess of our current and
accumulated capital earnings and profits (other than as a capital gain
dividend), the excess cash will be deemed to be a return of capital to each
shareholder to the extent of the adjusted tax basis of the shareholder's shares.
Distributions in excess of the adjusted tax basis will be treated as gain from
the sale or exchange of the shares. A shareholder who has received a
distribution in excess of current and our accumulated earnings and profits may,
upon the sale of the shares, realize a higher taxable gain or a smaller loss
because the basis of the shares as reduced will be used for purposes of
computing the amount of the gain or loss. Distributions we make, whether
characterized as ordinary income or as capital gains, are not eligible for the
dividends received deduction for corporations. For purposes of determining
whether distributions to holders of common shares are out of current or

accumulated earnings and profits, our earnings and profits will be allocated
first to the outstanding preferred shares, if any, and then to the common
shares.

Dividends we declare in October, November, or December of any year and
payable to a shareholder of record on a specified date in any of these months
shall be treated as both paid by us and received by the shareholder on December
31 of that year, provided we actually pay the dividend on or before January 31
of the following calendar year. Shareholders may not include in their own income
tax returns any of our net operating losses or capital losses.

Distributions that we properly designate as capital gain dividends will be
taxable to taxable U.S. shareholders as gains from the sale or disposition of a
capital asset to the extent that they do not exceed our actual net capital gain
for the taxable year. Depending on the period of time the tax characteristics of
the assets which produced these gains, and on certain designations, if any,
which we may make, these gains may be taxable to non-corporate U.S. shareholders
at a 20% or 25% rate. U.S. shareholders that are corporations may, however, be
required to treat up to 20% of certain capital gain dividends as ordinary
income.

We may elect to retain, rather than distribute as a capital gain dividend,
our net long-term capital gains. If we make this election, we would pay tax on
our retained net long-term capital gains. In addition, to the extent we
designate, a U.S. shareholder generally would:

- include its proportionate share of our undistributed long-term
capital gains in computing its long-term capital gains in its return
for its taxable year in which the last day of our taxable year falls;

- be deemed to have paid the capital gains tax imposed on us on
the designated amounts included in the U.S. shareholder's long-term
capital gains;

- receive a credit or refund for the amount of tax deemed paid by it;

- increase the adjusted basis of its common stock by the difference
between the amount of includable gains and the tax deemed to have
been paid by it; and

- in the case of a U.S. shareholder that is a corporation,
appropriately adjust its earnings and profits for the retained
capital gains in accordance with Treasury Regulations to be
prescribed by the IRS.

Distributions we make and gain arising from the sale or exchange by a U.S.
shareholder of our shares will not be treated as income from a passive activity,
within the meaning of Section 469 of the Internal Revenue Code, since income
from a passive activity generally does not include dividends and gain
attributable to the disposition of property that produces dividends. As a
result, U.S. shareholders subject to the passive activity rules will generally
be unable to apply any "passive losses" against this income or gain.
Distributions we make, to the extent they do not constitute a return of capital,
generally will be treated as investment income for purposes of computing the
investment interest limitation. Gain arising from the sale or other disposition
of our shares, however, will be treated as investment income if a shareholder so
elects, in which case the capital gain is taxed at ordinary income rates.

Generally, gain or loss realized by a shareholder upon the sale of shares
will be reportable as capital gain or loss. If a shareholder receives a
long-term capital gain dividend from us and has held the shares for six months
or less, any loss incurred on the sale or exchange of the shares is treated as a
long-term capital loss to the extent of the corresponding long-term capital gain
dividend received.

In any year in which we fail to qualify as a REIT, the shareholders
generally will continue to be treated in the same fashion described above,
except that none of our dividends will be eligible for treatment as capital
gains dividends, corporate shareholders will qualify for the dividends received
deduction and the shareholders will not be required to report any share of our
tax preference items.

BACKUP WITHHOLDING

We will report to our shareholders and the IRS the amount of dividends paid
during each calendar year and the amount of tax withheld, if any. If a
shareholder is subject to backup withholding, we will be required to deduct and
withhold from any dividends payable to that shareholder a backup withholding
tax. These rules may apply (1) when a shareholder fails to supply a correct
taxpayer identification number, (2) when the IRS notifies us that the
shareholder is subject to the rules or has furnished an incorrect taxpayer
identification number, or (3) in the case of corporations or others within
certain exempt categories, when they fail to demonstrate that fact when
required. A shareholder that does not provide a correct taxpayer identification
number may also be subject to penalties imposed by the IRS. Any amount withheld
as backup withholding may be credited against the shareholder's federal income
tax liability. We also may be required to withhold a portion of capital gain
distributions made to shareholders who fail to certify their non-foreign status.

The United States Treasury has recently issued final regulations regarding
the withholding and information reporting rules discussed above. In general, the
final regulations do not alter the substantive withholding and information
reporting requirements but unify current certification procedures and clarify
reliance standards. The final regulations are generally effective for payments
made on or after January 1, 2001, subject to certain transition rules.
Prospective investors should consult their own tax advisors concerning the
adoption of the final regulations and the potential effect on their ownership of
common shares.

TAXATION OF TAX-EXEMPT ENTITIES

In general, a tax-exempt entity that is a shareholder will not be subject
to tax on distributions or gain realized on the sale of shares. A tax-exempt
entity may be subject to unrelated business taxable income, however, to the
extent that it has financed the acquisition of its shares with "acquisition
indebtedness" within the meaning of the Internal Revenue Code. In determining
the number of shareholders a REIT has for purposes of the "50% test" described
above under "-REIT Qualification," generally, any shares held by tax-exempt
employees' pension and profit sharing trusts which qualify under Section 401(a)
of the Internal Revenue Code and are exempt from tax under Section 501(a) of the
Internal Revenue Code ("qualified trusts") will be treated as held directly by
its beneficiaries in proportion to their interests in the trust and will not be
treated as held by the trust.

A qualified trust owning more than 10% of a REIT may be required to treat a
percentage of dividends from the REIT as UBTI. The percentage is determined by
dividing the REIT's gross income (less direct expenses related thereto) derived
from an unrelated trade or business for the year (determined as if the REIT were
a qualified trust) by the gross income of the REIT for the year in which the
dividends are paid. However, if this percentage is less than 5%, dividends are
not treated as UBTI. These UBTI rules apply only if the REIT qualifies as a REIT
because of the "look-thru" rule with respect to the 50% test discussed above and
if the trust is "predominantly held" by qualified trusts. A REIT is
predominantly held by qualified trusts if at least one pension trust owns more
than 25% of the value of the REIT or a group of pension trusts each owning more
than 10% of the value of the REIT collectively own more than 50% of the value of
the REIT. We do not currently meet either of these requirements.

For social clubs, voluntary employee benefit associations, supplemental
unemployment benefit trusts and qualified group legal services plans exempt from
federal income taxation under Sections 501(c)(7), (c)(9), (c)(17) and (c)(20) of
the Internal Revenue Code, respectively, income from an investment in our
capital stock will constitute UBTI unless the organization is able to deduct an
amount properly set aside or placed in reserve for certain purposes so as to
offset the UBTI generated by the investment in our capital stock. These
prospective investors should consult their own tax advisors concerning the "set
aside" and reserve requirements.

TAXATION OF FOREIGN INVESTORS

The rules governing federal income taxation of nonresident alien
individuals, foreign corporations, foreign partnerships and other foreign
shareholders are complex and no attempt will be made herein to provide more than
a summary of such rules. Prospective non-U.S. shareholders should consult with
their own tax advisors to determine the impact of federal, state and local
income tax laws with regard to an investment in common shares, including any
reporting requirements, as well as the tax treatment of such an investment under
the laws of their home country.

Dividends that are not attributable to gain from any sales or exchanges we
make of United States real property interests and which we do not designate as
capital gain dividends will be treated as dividends of ordinary income to the
extent that they are made out of our current or accumulated earnings and
profits. Those dividends ordinarily will be subject to a withholding tax equal
to 30% of the gross amount of the dividend unless an applicable tax treaty
reduces or eliminates that tax. However, if income from the investment in the
common shares is treated as effectively connected with the non-U.S.
shareholder's conduct of a United States trade or business, the non-U.S.
shareholder generally will be subject to a tax at graduated rates, in the same
manner as U.S. shareholders are taxed with respect to those dividends, and may
also be subject to the 30% branch profits tax in the case of a shareholder that
is a foreign corporation. For withholding tax purposes, we are currently
required to treat all distributions as if made out of our current and
accumulated earnings and profits and thus we intend to withhold at the rate of
30%, or a reduced treaty rate if applicable, on the amount of any distribution
(other than distributions designated as capital gain dividends) made to a
non-U.S. shareholder unless (1) the non-U.S. shareholder files on IRS Form
W-8BEN claiming that a lower treaty rate applies or (2) the non-U.S. shareholder
files an IRS Form W-8ECI claiming that the dividend is effectively connected
income.

Under the final regulations, generally effective for distributions on or
after January 1, 2001, we would not be required to withhold at the 30% rate on
distributions we reasonably estimate to be in excess of our current and
accumulated earnings and profits. Dividends in excess of our current and
accumulated earnings and profits will not be taxable to a shareholder to the
extent that they do not exceed the adjusted basis of the shareholder's shares,
but rather will reduce the adjusted basis of those shares. To the extent that
those dividends exceed the adjusted basis of a non-U.S. shareholder's shares,
they will give rise to tax liability if the non-U.S. shareholder would otherwise
be subject to tax on any gain from the sale or disposition of his shares, as
described below. If it cannot be determined at the time a dividend is paid
whether or not a dividend will be in excess of current and accumulated earnings
and profits, the dividend will be subject to such withholding. We do not intend
to make quarterly estimates of that portion of dividends that are in excess of
earnings and profits, and, as a result, all dividends will be subject to such
withholding. However, the non-U.S. shareholder may seek a refund of those
amounts from the IRS.

For any year in which we qualify as a REIT, distributions that are
attributable to gain from our sales or exchanges of United States real property
interests will be taxed to a non-U.S. shareholder under the provisions of the
Foreign Investment in Real Property Tax Act of 1980, commonly known as "FIRPTA."
Under FIRPTA, those dividends are taxed to a non-U.S. shareholder as if the gain
were effectively connected with a United States business. Non-U.S. shareholders
would thus be taxed at the normal capital gain rates applicable to U.S.
shareholders subject to applicable alternative minimum tax and a special
alternative minimum tax in the case of nonresident alien individuals. Also,
dividends subject to FIRPTA may be subject to a 30% branch profits tax in the
hands of a corporate non-U.S. shareholder not entitled to treaty exemption. We
are required by the Code and applicable Treasury Regulations to withhold 35% of
any dividend that could be designated as a capital gain dividend. This amount is
creditable against the non-U.S. shareholder's FIRPTA tax liability.

Gain recognized by a non-U.S. shareholder upon a sale of shares generally
will not be taxed under FIRPTA if we are a "domestically controlled REIT,"
defined generally as a REIT in which at all times during a specified testing
period less than 50% in value of the shares was held directly or indirectly by
foreign persons. It is currently anticipated that we will be a "domestically
controlled REIT," and therefore the sale of shares will not be subject to
taxation under FIRPTA. Because the common shares will be publicly traded,
however, no assurance can be given that we will remain a "domestically
controlled REIT." However, gain not subject to FIRPTA will be taxable to a
non-U.S. shareholder if (1) investment in the common shares is effectively
connected with the non-U.S. shareholder's United States trade or business, in
which case the non-U.S. shareholder will be subject to the same treatment as
U.S. shareholders with respect to that gain, and may also be subject to the 30%
branch profits tax in the case of a corporate non-U.S. shareholder, or (2) the
non-U.S. shareholder is a nonresident alien individual who was present in the
United States for 183 days or more during the taxable year and has a "tax home"
in the United States, in which case the nonresident alien individual will be
subject to a 30% withholding tax on the individual's capital gains. If we were
not a domestically controlled REIT, whether or not a non-U.S. shareholder's sale
of shares would be subject to tax under FIRPTA would depend on whether or not
the common shares were regularly traded on an established securities market
(such as the NYSE) and on the size of selling non-U.S. shareholder's interest in
our capital shares. If the gain on the sale of shares were to be subject to
taxation under FIRPTA, the non-U.S. shareholder will be subject to the same
treatment as U.S. shareholders with respect to that gain (subject to applicable
alternative minimum tax and a special alternative minimum tax in the case of
nonresident alien individuals and the possible application of the 30% branch

profits tax in the case of foreign corporations) and the purchaser of our common
shares may be required to withhold 10% of the gross purchase price.

STATE AND LOCAL TAXES

We, and our shareholders, may be subject to state or local taxation in
various state or local jurisdictions, including those in which it or they
transact business or reside. Consequently, prospective shareholders should
consult their own tax advisors regarding the effect of state and local tax laws
on an investment in our capital shares.

PLAN OF DISTRIBUTION

We may offer securities directly or through underwriters, dealers or
agents. The prospectus supplement will identify those underwriters, dealers or
agents and will describe the plan of distribution, including commissions to be
paid. If we do not name a firm in the prospectus supplement, the firm may not
directly or indirectly participate in any underwriting of those securities,
although it may participate in the distribution of securities under
circumstances entitling it to a dealer's allowance or agent's commission. Any
underwriting agreement will entitle the underwriters to indemnification against
designated civil liabilities under the federal securities laws and other laws.
The underwriters' obligations to purchase securities will be subject to
compliance with specific conditions and generally will require them to purchase
all of the securities if any are purchased.

Unless otherwise noted in the prospectus supplement, the securities will be
offered by the underwriters, if any, when, as and if issued by us, delivered to
and accepted by the underwriters and subject to their right to reject orders in
whole or in part.

We may sell securities to dealers, as principals. Those dealers then may
resell the securities to the public at varying prices set by those dealers from
time to time. We may also offer securities through agents. Agents generally act
on a "best efforts" basis during their appointment, meaning that they are not
obligated to purchase securities. Dealers and agents may be entitled to
indemnification as underwriters by us against designated liabilities under the
federal securities laws and other laws.

An underwriter may engage in over-allotment, stabilizing transactions,
short covering transactions and penalty bids in accordance with securities laws.
Over-allotment involves sales in excess of the offering size, which creates a
short position. Stabilizing transactions permit bidders to purchase the
underlying security so long as the stabilizing bids do not exceed a specified
maximum. Short covering transactions involve purchases of the securities in the
open market after the distribution is completed to cover short positions.
Penalty bids permit the underwriters to reclaim a selling concession from a
dealer when the securities originally sold by the dealer are purchased in a
covering transaction to cover short positions. Those activities may cause the
price of the securities to be higher than it would otherwise be. The
underwriters may engage in these activities on any exchange or other market in
which the securities may be traded. If commenced, the underwriters may
discontinue these activities at any time.

Certain of the underwriters and their affiliates may be customers of,
engage in transactions with, and perform services for, us and our subsidiaries
in the ordinary course of business.

The prospectus supplement or pricing supplement, as applicable, will set
forth the anticipated delivery date of the securities being sold at that time.

LEGAL MATTERS

Unless otherwise noted in a prospectus supplement, Locke Liddell & Sapp
LLP, Dallas, Texas, will pass on the legality of the securities offered through
this prospectus and certain tax matters. Counsel for any underwriters or agents
will be noted in the applicable prospectus supplement.

EXPERTS

The financial statements and the related financial statement schedules
incorporated in this prospectus by reference from the Company's Annual Report on
Form 10-K/A have been audited by Deloitte & Touche LLP, independent auditors, as
stated in their report, which is incorporated herein by reference, and have been

so incorporated in reliance upon the report of such firm given upon their
authority as experts in accounting and auditing.

WHERE YOU CAN FIND MORE INFORMATION

We are subject to the reporting requirements of the Securities and Exchange
Act of 1934, as amended, and file annual, quarterly and special reports, proxy
statements and other information with the SEC. You may read and copy any
document we file at the SEC's public reference room at 450 Fifth Street, N.W.,
Washington, D.C. 20549. You can request copies of these documents by writing to
the SEC and paying a fee for the copying cost. Please call the SEC at
1-800-SEC-0330 for more information about the operation of the public reference
room. Our SEC filings are also available to the public at the SEC's web site at
http://www.sec.gov. In addition, you may read and copy our SEC filings at the
offices of the New York Stock Exchange, 20 Broad Street, New York, New York
10005. Our website address is http://www.weingarten.com.

This prospectus is only part of a registration statement we filed with the
SEC under the Securities Act of 1933, as amended, and therefore omits certain
information contained in the registration statement. We have also filed exhibits
and schedules to the registration statement that we have excluded from this
prospectus, and you should refer to the applicable exhibit or schedule for a
complete description of any statement referring to any contract or document. You
may inspect or obtain a copy of the registration statement, including exhibits
and schedules, as described in the previous paragraph.

INCORPORATION OF DOCUMENTS BY REFERENCE

The SEC allows us to "incorporate by reference" the information we file
with it. This means that we can disclose important information to you by
referring you to those documents. The information incorporated by reference is
considered to be part of this prospectus and the information we file later with
the SEC will automatically update and supersede this information.

We incorporate by reference the documents listed below and any future
filings we make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the
Securities Exchange Act of 1934 until this offering is completed:

- Annual Report on Form 10-K/A for the year ended December 31, 2000
(File No. 001-09876).

- Quarterly Report on Form 10-Q/A-2 for the quarter ended March 31,
2001 (File No. 001-09876).

- Quarterly Report on Form 10-Q/A for the quarter ended June 30, 2001
(File No. 001-09876).

- The description of our common shares of beneficial interest
contained in our registration statement on Form 8-B filed March 17,
1988 (File No. 001-09876).

- The description of our 7.44% Series A Cumulative Redeemable
Preferred Shares contained in our registration statement on Form 8-A
filed February 23, 1998 (File No. 001-09876).

- The description of our 7.00% Series C Cumulative Redeemable
Preferred Shares contained in our registration statement on Form 8-A
filed January 19, 1999 (File No. 001-09876).

- Current Report on Form 8-K filed January 22, 2001 (File No.
001-09876).

- Current Report on Form 8-K filed March 22, 2001 (File No.
001-09876).

- Current Report on Form 8-K filed April 16, 2001 (File No.
001-09876).

- Current Report on Form 8-K filed April 26, 2001 (File No.
001-09876).

- Current Report on Form 8-K/A filed April 30, 2001 (File No.
001-09876).

- Current Report on Form 8-K filed May 4, 2001 (File No.
001-09876).

- Current Report on Form 8-K/A filed June 18, 2001 (File No.
001-09876).

- Current Report on Form 8-K/A filed June 21, 2001 (File No.
001-09876).

- Current Report on Form 8-K filed August 13, 2001 (File No.
001-09876).

- Current Report on Form 8-K filed October 29, 2001 (File No.
001-09876).

- Current Report on Form 8-K/A filed October 29, 2001 (File No.
001-09876).

You may request copies of these filings at no cost by writing or
telephoning our Investor Relations Department at the following address and
telephone number:

Weingarten Realty Investors
2600 Citadel Plaza Drive
Suite 300
Houston, Texas 77008
(713) 866-6000

[Intentionally Left Blank]

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198,098 SHARES

WEINGARTEN REALTY INVESTORS

COMMON SHARES

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PROSPECTUS SUPPLEMENT

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FEBRUARY 25, 2002

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