Although Weingarten is best known for its retail holdings, its portfolio also includes 64 industrial properties. These include primarily warehouse and "B"-quality flex space, and they generate about 10 percent of the company's total revenue.

"There's so much money chasing the 'A'-quality space these days that Weingarten simply decided it could get a better price if it went after the 'B' space instead," Donnelly explains. "In reality, there aren't that many companies that really need the high ceilings you get in 'A' space, so Weingarten does fine with its industrial portfolio."

Although other analysts have criticized the company for holding onto its industrial properties, saying it dilutes the company's business interests, those negative comments don't faze Alexander.

"We've been in the industrial sector since the late 1960s when we had supermarket warehouses," he says. "We know the business and it makes sense for us."

In fact, in 2005 Weingarten added seven industrial properties to its portfolio and sold three. In 2006, Alexander expects the company to complete several joint ventures in the industrial division. Industrial occupancy improved in 2005 by 50 basis points over the previous year to 93.1 percent, and Alexander anticipates performance in this sector will continue to improve in 2006.