New Plan Excel Realty Trust Reports First Quarter 2005 Results NEW
YORK, May 5 /PRNewswire-FirstCall/ -- New Plan Excel Realty Trust,
Inc. (NYSE:NXL) today announced financial results for the three
months ended March 31, 2005. Total rental revenues for the first
quarter of 2005 increased to $130.5 million from $124.4 million in
the first quarter of 2004. Net income available to common
stockholders was $33.5 million, or $0.32 per diluted share, in the
first quarter of 2005 compared with $32.4 million, or $0.32 per
diluted share, in the first quarter of 2004. Funds from operations
(FFO) for the first quarter of 2005 was $56.0 million, or $0.53 on
a diluted per share basis, compared with $52.3 million, or $0.51 on
a diluted per share basis, in the first quarter of 2004. A
reconciliation of net income to FFO is presented in the attached
table. Property Portfolio At the end of the first quarter, the
gross leasable area (GLA) for the Company's stabilized community
and neighborhood shopping centers, including its pro rata share of
unconsolidated joint venture properties, was approximately 93.2
percent leased. The GLA for the Company's total community and
neighborhood shopping center portfolio, which includes
redevelopment properties and the Company's pro rata share of
unconsolidated joint venture properties, was approximately 92.1
percent leased at March 31, 2005. During the first quarter, 146 new
leases, aggregating approximately 831,000 square feet, were signed
at an average annual base rent (ABR) of $10.27 per square foot.
Also during the quarter, 179 renewal leases, aggregating
approximately 649,000 square feet, were signed at an average ABR of
$10.72 per square foot, an increase of approximately 8.6 percent
over the expiring leases. During the first quarter, the Company
completed the redevelopment of seven shopping centers (including
one joint venture property) and added nine projects to its
redevelopment pipeline, increasing the pipeline to 39 redevelopment
projects (including joint venture redevelopment activities and
outparcel development), the aggregate cost of which (including
costs incurred in prior years on these projects) is expected to be
approximately $193.1 million. Acquisitions and Dispositions During
the first quarter of 2005, the Company acquired, including through
co-investments with its joint venture partners, five shopping
centers and a vacant building and land parcel. The properties
totaled approximately 884,000 square feet of GLA and were acquired
for an aggregate purchase price of approximately $136.8 million.
Acquisitions completed during the first quarter are summarized
below: * On January 13, 2005, the Company acquired a 20,338 square
foot vacant building and 2.5 acres of land located in Elyria, Ohio
immediately adjacent to Midway Crossing, a community shopping
center owned by the Company and currently under redevelopment. The
building and land were acquired for approximately $1.1 million. *
On January 21, 2005, the Company acquired Brunswick Town Center, a
122,989 square foot shopping center located in Brunswick, Ohio and
anchored by Giant Eagle and Home Depot (non-owned), for
approximately $16.4 million. * On February 16, 2005, the Company
acquired Hillcrest Shopping Center, a 312,449 square foot shopping
center located in Spartanburg, South Carolina and anchored by
Publix, Marshalls and Stein Mart, for approximately $35.5 million,
including the issuance of $14.5 million of limited partner units
and approximately $16.8 million of assumed mortgage indebtedness.
The property is currently under redevelopment with a former Kmart
being remerchandised to an Office Depot, a Panera Bread, a PETCO
and a Ross Dress for Less. * On February 25, 2005, Westgate Mall,
LLC, the Company's joint venture with Transwestern Investment
Company and The Richard E. Jacobs Group, acquired Westgate Mall, an
enclosed regional mall located on 55 acres of land in Fairview
Park, Ohio (a suburb of Cleveland), for approximately $25.5
million. The joint venture plans to redevelop the mall into a large
community shopping center with multiple anchors, including an
existing Kohl's. * On March 10, 2005, NP/I&G Institutional
Retail Company, LLC, the Company's joint venture with JPMorgan
Fleming Asset Management, acquired New London Mall, a 260,396
square foot shopping center located in New London, Connecticut and
anchored by Homegoods, Marshalls, OfficeMax and ShopRite, for
approximately $41.6 million. * On March 17, 2005, the Company
acquired West Ridge Shopping Center, a 167,559 square foot shopping
center located in Westland, Michigan (a suburb of Detroit) and
anchored by Mervyn's (non-owned), Target (non-owned), TEC
Furniture, Tile Shop and T.J. Maxx, for approximately $16.6
million, including $11.0 million of assumed mortgage indebtedness.
During the first quarter of 2005, the Company generated an
aggregate of approximately $16.9 million of proceeds through the
sale of two properties, one land parcel and one property held
through a joint venture. Properties sold during the quarter include
Jasper Manor, a 194,120 square foot shopping center located in
Jasper, Indiana; Cavitt Office Building, a 13,200 square foot
miscellaneous property located in Bryan, Texas; a one-acre land
parcel at Shops of Riverdale located in Riverdale, Georgia; and
Rodney Village, a 211,568 square foot shopping center located in
Dover, Delaware and owned by Benbrooke Ventures, a joint venture in
which the Company previously held a 50 percent interest. Balance
Sheet Position The Company completed the first quarter with total
book assets of approximately $3.9 billion and a total debt /
undepreciated book value ratio of 47.3 percent. The Company's debt
for the three months ended March 31, 2005 had an overall weighted
average current interest rate of 5.9 percent and a weighted average
maturity of 6.5 years. Approximately 76 percent of the Company's
total debt is fixed rate debt, including the impact of the
Company's interest rate swaps. On January 13, 2005, the Company
completed a public offering of $100 million aggregate principal
amount of unsecured, 10-year fixed rate notes with a coupon of 5.30
percent. The notes are due on January 15, 2015 and were priced at
99.930 percent of par value to yield 5.309 percent. Net proceeds
from the offering were used to repay a portion of the amount
outstanding under the Company's $350 million revolving credit
facility. On April 5, 2005, the Company entered into a $150 million
senior unsecured term loan. The unsecured term loan matures on
October 5, 2005 and currently bears interest at LIBOR plus 85 basis
points. Net proceeds from the unsecured term loan were used to
repay $100 million of the Company's 7.75 percent medium-term notes
that were scheduled to mature on April 6, 2005, as well as to repay
a portion of the amount outstanding under the Company's $350
million revolving credit facility. Dividend For the second quarter
of 2005, the Company's Board of Directors declared a cash dividend
of $0.4125 per common share (CUSIP #648053106). On an annualized
basis, this is the equivalent of $1.65 per share. The dividend is
payable on July 15, 2005 to common stockholders of record on July
1, 2005. The Company's shares go ex-dividend on June 29, 2005. The
Board of Directors also declared a dividend of $0.975 per
depositary share on its 7.8 percent Series D Cumulative Voting
Step-Up Premium Rate Preferred Stock (CUSIP #648053700) to
stockholders of record on July 1, 2005, payable on July 15, 2005.
In addition, the Board of Directors declared a dividend of $0.47656
per depositary share on its 7.625 percent Series E Cumulative
Redeemable Preferred Stock (CUSIP #6480538090) to stockholders of
record on July 1, 2005, payable on July 15, 2005. Management
Comment "We kicked-off 2005 with a solid first quarter, achieving
our occupancy targets and higher than expected rent spreads, while
advancing our redevelopment efforts. The $137 million of
acquisitions completed during the quarter demonstrate our diverse
sourcing capabilities. The shopping centers acquired are located
across three of our regions and span the spectrum of institutional
quality assets to value-added opportunities," commented Glenn J.
Rufrano, Chief Executive Officer. Conference Call The Company will
be hosting a teleconference on Thursday, May 5, 2005 at 2:00 PM ET.
The teleconference can be accessed by dialing 1-800-599-9795
(International: 1-617-786-2905) or via the web at
http://www.newplan.com/ under Investor Information; Audio Archives.
Please refer to passcode #45375891. A replay of the teleconference
will be available through midnight ET May 12, 2005 by dialing
1-888-286-8010 (International: 1-617-801-6888) or via the web at
http://www.newplan.com/ under Investor Information; Audio Archives.
Please refer to passcode #70852124. The Company's Supplemental
Disclosure package will be furnished today on a Current Report on
Form 8-K and will also be available on the Company's website at
http://www.newplan.com/ under Investor Information; Financial
Reports. These materials are also available in e-mail or hard copy
formats by contacting New Plan Corporate Communications at or
1-800-468-7526. Annual Meeting of Shareholders The Company's Board
of Directors has scheduled the Annual Meeting of Shareholders for
Wednesday, May 11, 2005 at 9:00 AM ET. The meeting will be held at
The Cornell Club of New York, The Ivy Room, 6 East 44th Street, New
York, NY 10017. The record date for determination of shareholders
entitled to vote was March 1, 2005. New Plan Excel Realty Trust,
Inc. is one of the nation's largest real estate companies, focusing
on the ownership and management of community and neighborhood
shopping centers. The Company operates as a self-administered and
self-managed REIT, with a national portfolio of 408 properties,
including 28 properties held through joint ventures, and total
assets of approximately $3.9 billion. The properties are
strategically located across 36 states and include 389 community
and neighborhood shopping centers, primarily grocery or name-brand
discount chain anchored, with approximately 56.6 million square
feet of gross leasable area, and 19 related retail real estate
assets, with approximately 1.8 million square feet of gross
leasable area. For additional information, please visit
http://www.newplan.com/. Certain statements in this release that
are not historical fact may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results of the Company to differ materially from historical results
or from any results expressed or implied by such forward-looking
statements, including without limitation: national and local
economic, business, real estate and other market conditions; the
competitive environment in which the Company operates; financing
risks; possible future downgrades in our credit ratings; property
ownership / management risks; the level and volatility of interest
rates and changes in capitalization rates with respect to the
acquisition and disposition of properties; financial stability of
tenants; the Company's ability to maintain its status as a REIT for
federal income tax purposes; acquisition, disposition, development
and joint venture risks, including risks that developments and
redevelopments are not completed on time or on budget and
strategies, actions and performance of affiliates that the Company
may not control; potential environmental and other liabilities; and
other factors affecting the real estate industry generally. The
Company refers you to the documents filed by the Company from time
to time with the Securities and Exchange Commission, specifically
the section titled "Business-Risk Factors" in the Company's Annual
Report on Form 10-K for the year ended December 31, 2004, which
discuss these and other factors that could adversely affect the
Company's results. NEW PLAN EXCEL REALTY TRUST, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands,
except per share amounts and footnotes) Three Months Ended March
31, 2005 March 31, 2004 Rental Revenues: Rental income $101,637
$95,737 Percentage rents 2,647 2,643 Expense reimbursements 26,198
26,034 TOTAL RENTAL REVENUES 130,482 124,414 Rental Operating
Expenses: Operating costs 22,709 23,679 Real estate and other taxes
16,539 15,077 Provision for doubtful accounts 2,745 1,872 TOTAL
RENTAL OPERATING EXPENSES 41,993 40,628 NET OPERATING INCOME (1)
88,489 83,786 Other Income: Interest, dividend and other income
2,535 2,538 Equity in income of unconsolidated ventures 689 230
TOTAL OTHER INCOME 3,224 2,768 Other Expenses: Interest expense
27,331 26,401 Depreciation and amortization 25,678 20,966 General
and administrative 4,995 4,993 TOTAL OTHER EXPENSES 58,004 52,360
Income before real estate sales, impairment of real estate and
minority interest 33,709 34,194 Gain on sale of real estate (2) -
1,217 Impairment of real estate - - Minority interest in income of
consolidated partnership and joint ventures (282) (260) INCOME FROM
CONTINUING OPERATIONS 33,427 35,151 Discontinued Operations:
Results of discontinued operations 256 831 Gain on sale of
discontinued operations (3) 5,004 1,415 INCOME FROM DISCONTINUED
OPERATIONS 5,260 2,246 NET INCOME $ 38,687 $ 37,397 Preferred
dividends (5,467) (5,275) NET INCOME AVAILABLE TO COMMON
STOCKHOLDERS - BASIC 33,220 32,122 Minority interest in income of
consolidated partnership 282 260 NET INCOME AVAILABLE TO COMMON
STOCKHOLDERS - DILUTED $ 33,502 $ 32,382 Net income per common
share - basic $ 0.32 $ 0.32 Net income per common share - diluted
0.32 0.32 Funds from operations: (4) Net income available to common
stockholders - diluted $ 33,502 $ 32,382 Deduct: Minority interest
in income of consolidated partnership (282) (260) Net income
available to common stockholders - basic 33,220 32,122 Add:
Depreciation and amortization: Continuing operations real estate
assets 25,678 20,966 Discontinued operations real estate assets 10
298 Pro rata share of joint venture real estate assets 565 373
Deduct: Gain on sale of real estate (2) (5) - (1,217) Gain on sale
of discontinued operations (5) (3,732) (947) Pro rata share of
joint venture loss on sale of real estate (5) - 425 FUNDS FROM
OPERATIONS - BASIC 55,741 52,020 Add: Minority interest in income
of consolidated partnership 282 260 FUNDS FROM OPERATIONS - DILUTED
$ 56,023 $ 52,280 Funds from operations per share - basic $ 0.54 $
0.52 Funds from operations per share - diluted 0.53 0.51 NEW PLAN
EXCEL REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS
OF INCOME (In thousands, except per share amounts and footnotes)
Three Months Ended March 31, 2005 March 31, 2004 Weighted average
common shares outstanding - basic 102,820 99,419 ERP partnership
units 1,964 1,363 Options 1,042 1,226 Convertible debt 165 -
Restricted stock 144 - Weighted average common shares outstanding -
diluted 106,135 102,008 (1) Net operating income ("NOI") is
provided here as a supplemental measure of operating performance.
NOI is defined as property revenues less property operating
expenses, excluding depreciation and amortization and interest
expense, and excludes NOI from properties classified as
discontinued operations under Statement of Financial Accounting
Standards No. 144, Accounting for the Impairment or Disposal of
Long-Lived Assets. The Company believes that this presentation of
NOI is helpful to investors as a measure of its operational
performance because it excludes various items included in net
income that do not relate to or are not indicative of its operating
performance, such as depreciation and amortization and interest
expense, which can make periodic and peer analyses of operating
performance more difficult to compare. NOI should not, however, be
considered as an alternative to net income (calculated in
accordance with GAAP) as an indicator of the Company's financial
performance. (2) For the three months ended March 31, 2004, balance
includes approximately $1.217 million of previously deferred gain
incurred in connection with the Company's sale of 70 percent of its
interest in Arapahoe Crossings, LP in 2003. (3) For the three
months ended March 31, 2005, balance includes approximately $3.314
million, which represents the Company's pro rata share of the gain
on the sale of Rodney Village, a property previously owned by
Benbrooke Ventures, a joint venture in which the Company previously
held a 50 percent interest. (4) Funds from Operations ("FFO") is a
widely used performance measure for real estate companies and is
provided here as a supplemental measure of operating performance.
The Company calculates FFO in accordance with the best practices
described in the April 2002 National Policy Bulletin of the
National Association of Real Estate Investment Trusts (the "White
Paper"). The White Paper defines FFO as net income (computed in
accordance with generally accepted accounting principles ("GAAP")),
excluding gains (or losses) from sales of property, plus
depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures. On October 1, 2003,
the National Association of Real Estate Investment Trusts
("NAREIT"), based on discussions with the Securities and Exchange
Commission ("SEC"), provided revised guidance regarding the
calculation of FFO. This revised guidance provides that impairments
should not be added back to net income in calculating FFO and that
original issuance costs associated with preferred stock that has
been redeemed should be factored into the calculation of FFO. Prior
to this pronouncement, the Company had added back impairments in
calculating FFO, in accordance with prior NAREIT guidance, and had
not factored in original issuance costs of preferred stock that had
been redeemed in the calculation of FFO. The Company presents FFO
in accordance with NAREIT's revised guidance. Given the nature of
the Company's business as a real estate owner and operator, the
Company believes that FFO is helpful to investors as a starting
point in measuring its operational performance because it excludes
various items included in net income that do not relate to or are
not indicative of its operating performance such as gains (or
losses) from sales of property and depreciation and amortization,
which can make periodic and peer analyses of operating performance
more difficult to compare. FFO should not, however, be considered
as an alternative to net income (determined in accordance with
GAAP) as an indicator of the Company's financial performance, is
not an alternative to cash flow from operating activities
(determined in accordance with GAAP) as a measure of the Company's
liquidity, and is not indicative of funds available to fund the
Company's cash needs, including its ability to make distributions.
In addition, the Company's computation of FFO may differ in certain
respects from the methodology utilized by other REITs to calculate
FFO and, therefore, may not be comparable to such other REITs. (5)
Excludes gain / loss on sale of land. The above does not purport to
disclose all items required under GAAP. The Company's Form 10-Q for
the quarter ended March 31, 2005 should be read in conjunction with
the above information. DATASOURCE: New Plan Excel Realty Trust,
Inc. CONTACT: Stacy Slater, Senior Vice President - Corporate
Communications, New Plan Excel Realty Trust, Inc., +1-212-869-3000,
or Web site: http://www.newplan.com/
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