- Financial results reflect previously announced $968 million
transaction and balance sheet recapitalization - NEW YORK, Oct. 27
/PRNewswire-FirstCall/ -- New Plan Excel Realty Trust, Inc.
(NYSE:NXL) today announced financial results for the three and nine
months ended September 30, 2005. Total rental revenues for the
third quarter of 2005 were $112.8 million as compared with $119.3
million in the third quarter of 2004. Net income available to
common stockholders was $194.9 million, or $1.82 per diluted share,
in the third quarter of 2005 compared with $24.2 million, or $0.23
per diluted share, in the third quarter of 2004. Net income
available to common stockholders for the third quarter of 2005
includes a gain on sale of real estate of $1.75 per diluted share
related to the Galileo Transactions (as defined below) and charges
of $0.17 per diluted share related to the Galileo Transactions and
the redemption of all $250.0 million of the Company's previously
outstanding 5.875 percent senior unsecured notes that were due June
15, 2007 (as described below). Funds from operations (FFO) for the
third quarter of 2005 was $30.7 million, or $0.29 on a diluted per
share basis, compared with $51.4 million, or $0.50 on a diluted per
share basis, in the third quarter of 2004. FFO for the third
quarter of 2005 includes charges of $0.17 per diluted share related
to the Galileo Transactions and the redemption of all $250.0
million of the Company's previously outstanding 5.875 percent
senior unsecured notes that were due June 15, 2007. A
reconciliation of net income to FFO is presented in the attached
table. Financial results for the nine months ended September 30,
2005 include the gain on sale of real estate of $1.75 per diluted
share and charges of $0.17 per diluted share as described above.
Total rental revenues for the nine months ended September 30, 2005
were $370.1 million as compared with $358.7 million in the first
nine months of 2004. Net income available to common stockholders
was $263.9 million, or $2.48 per diluted share, in the first nine
months of 2005 compared with $84.5 million, or $0.82 per diluted
share, in the first nine months of 2004. FFO for the first nine
months of 2005 was $143.1 million, or $1.34 on a diluted per share
basis, compared with $158.7 million, or $1.55 on a diluted per
share basis, in the first nine months of 2004. Portfolio Review At
the end of the third 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 92.7 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 91.1 percent leased at September 30,
2005. During the third quarter, 169 new leases, aggregating
approximately 1.1 million square feet, were signed at an average
annual base rent (ABR) of $10.02 per square foot. Also during the
quarter, 156 renewal leases, aggregating approximately 707,000
square feet, were signed at an average ABR of $10.51 per square
foot, an increase of approximately 6.1 percent over the expiring
leases. During the first nine months of 2005, the Company executed
a total of 995 new and renewal leases aggregating approximately 5.3
million square feet, including 459 new leases, totaling
approximately 2.9 million square feet, which were signed at an
average ABR of $9.38 per square foot and 536 renewal leases,
totaling approximately 2.4 million square feet, which were signed
at an average ABR of $9.84 per square foot, an increase of
approximately 6.4 percent over the expiring leases. During the
third quarter, the Company completed the redevelopment of eight
shopping centers (including two joint venture properties) and added
13 projects to its redevelopment pipeline, increasing the pipeline
to 45 redevelopment projects (including joint venture redevelopment
projects and outparcel development), the aggregate cost of which
(including costs incurred in prior years on these projects) is
expected to be approximately $253.4 million. Acquisitions and
Dispositions During the third quarter of 2005, the Company
acquired, including through co-investments with its joint venture
partners, four shopping centers and six land parcels for an
aggregate purchase price of approximately $82.0 million. The
shopping centers totaled approximately 590,225 square feet of gross
leasable area and the land parcels totaled approximately 51 acres.
During the first nine months of 2005, the Company acquired,
including through co- investments with its joint venture partners,
an aggregate of ten shopping centers, a vacant building and
adjacent land parcel, a shopping center currently being de-malled,
the remaining 90 percent interests in two shopping centers in which
the Company owned the other 10 percent interests and six land
parcels for an aggregate of approximately $322.0 million. The
shopping centers and the vacant building totaled approximately 2.2
million square feet of gross leaseable area and the shopping center
being de-malled and the land parcels totaled approximately 108.5
acres. Acquisitions completed during the third quarter are
summarized below: * On July 13, 2005, the Company acquired Market
Plaza, a 161,453 square foot shopping center located in Plano,
Texas and anchored by H.E.B. Central Market, for approximately
$39.6 million. * On August 17, 2005, NP/I&G Institutional
Retail Company, LLC, the Company's joint venture with JPMorgan
Fleming Asset Management, acquired Meridian Towne Centre, an 86,891
square foot shopping center located in Okemos, Michigan (a suburb
of Lansing) and anchored by Kroger (non-owned), Marshalls and
Target (non-owned), for approximately $14.3 million. * On August
26, 2005, the Company acquired Surrey Square Mall, a 192,388 square
foot shopping center located in Norwood, Ohio and anchored by
Kroger, for approximately $10.5 million. The property will be
redeveloped with a new 76,000 square foot Kroger. * On September 7,
2005, the Company acquired five land parcels located adjacent to
four existing and one to-be-built Home Depot stores for an
aggregate of approximately $9.3 million. The land parcels aggregate
approximately 40 acres and are located in Orlando and Pensacola,
Florida; Baton Rouge, Louisiana; and Columbus and Akron, Ohio. The
Company expects to develop approximately 223,240 square feet of
retail space on four of the land parcels and, over time, expects to
sell the land parcel in Akron, Ohio. * On September 14, 2005, the
Company acquired Fashion Place Shopping Center, a 149,493 square
foot shopping center located in Columbia, South Carolina and
anchored by Dollar Tree, Staples, Superpetz and T.J. Maxx, for
approximately $6.8 million. * On September 30, 2005, the Company
acquired Brandt Pike Place, an 11-acre land parcel located in
Dayton, Ohio, adjacent to a Kroger store, for approximately $1.6
million. The Company expects to develop approximately 40,500 square
feet of retail space on the land parcel. On October 7, 2005, the
Company closed under a joint venture with Kmart Corporation
pursuant to which the joint venture will redevelop three Kmart
Supercenter properties formerly owned by Kmart and located in the
Memphis, Tennessee market. The Company has a 20 percent interest in
the joint venture and will be responsible for redevelopment,
management and leasing of the properties. During the third quarter
of 2005, the Company generated an aggregate of approximately $982.3
million of proceeds through the sale of a portfolio of 69 shopping
centers to a joint venture and the sale of three properties and one
land parcel, as well as the sale of one property and one land
parcel held through joint ventures. During the first nine months of
2005, the Company generated an aggregate of approximately $1.0
billion of proceeds through the sale of a portfolio of 69 shopping
centers to a joint venture, the culling of non-core and
non-strategic properties and the disposition of certain properties
and land parcels held through joint ventures. Transfers and
dispositions completed during the third quarter are summarized
below: * On August 10, 2005, the Company sold an aggregate of 69
community and neighborhood shopping centers (the "Properties") to
Galileo America LLC for approximately $968.0 million, comprised of
approximately $928.2 million in cash and approximately $39.8
million of equity in Galileo America LLC (the "Property Transfer").
The Company has the right to receive up to an additional $12.0
million in cash based upon the performance of the Properties during
the 18-month period following the closing of the Property Transfer.
-- A series of related transactions occurred simultaneously with
the closing of the Property Transfer, resulting in the Company
owning an approximate 5.0 percent equity interest in Galileo
America LLC, which included (i) the redemption by Galileo America
LLC of an existing interest in Galileo America LLC held by CBL
& Associates Properties, Inc. ("CBL") for two properties
previously owned by Galileo America LLC, (ii) the purchase by the
Company of an asset management fee stream from Galileo America LLC
for $18.5 million and (iii) the acquisition by the Company of the
property management rights of CBL with respect to Galileo America
LLC for $22.0 million (plus an agreement to purchase additional
property management rights in 2008 for $7.0 million) (such
transactions are referred to collectively with the Property
Transfer as the "Galileo Transactions"). * The remaining properties
sold during the quarter include Desiard Plaza, a 65,439 square foot
shopping center located in Monroe, Louisiana; Harbor Plaza, a
51,794 square foot shopping center located in Ashtabula, Ohio;
Fondren, a 45,873 square foot shopping center located in Houston,
Texas; 0.46 acres of land at North Leg Plaza in Augusta, Georgia;
Conway Plaza, a 32,875 square foot shopping center located in
Conway, South Carolina and owned by Galileo America LLC, a joint
venture in which the Company holds a 5.0 percent interest; and 9.3
acres of land at BPR West, L.P. in Frisco, Texas, owned by a joint
venture in which the Company previously held a 50.0 percent
interest. On October 11, 2005, the Company completed the sale of
Valley Fair Mall, a 607,075 square foot enclosed regional mall
located in West Valley City, Utah, for approximately $35.0 million.
Valley Fair Apartments, comprised of 16 units and located adjacent
to Valley Fair Mall, was included in the sale. Balance Sheet
Position The Company completed the third quarter with total book
assets of approximately $3.3 billion and a total debt /
undepreciated book value ratio of 43.8 percent. The Company's debt
for the three months ended September 30, 2005 had an overall
weighted average current interest rate of 6.0 percent and a
weighted average maturity of 8.2 years. Approximately 83 percent of
the Company's total debt is fixed rate debt, including the impact
of the Company's interest rate swaps. On July 19, 2005, in
connection with Galileo Transactions, the Company entered into
amendments to its (i) revolving credit facility, (ii) secured term
loan facility and (iii) senior unsecured term loan facility. As
part of the amendments, the Company amended certain covenants
contained in such facilities relating to (i) asset sales by the
Company, (ii) permitted dividends by the Company, (iii) the
Company's minimum tangible net worth, (iv) the maximum ratio of the
Company's total unsecured debt to unencumbered asset value and (v)
the capitalization rate used to calculate the value of the
Company's assets for purposes of certain ratio tests. During the
third quarter, the Company repaid certain outstanding indebtedness
with a portion of the proceeds generated from the Galileo
Transactions, including $100.6 million of secured mortgage
indebtedness and $200.0 million outstanding under its senior
unsecured term loan facility. In addition, a portion of the
proceeds was used to repay the balance outstanding under the
Company's revolving credit facility. On September 27, 2005, the
Company paid a special distribution of $3.00 per common share,
aggregating approximately $310.4 million, with the remaining
proceeds generated from the Galileo Transactions. On September 19,
2005, the Company completed a public offering of $125.0 million
aggregate principal amount of senior unsecured, 7-year fixed rate
notes with a coupon of 5.125 percent due September 15, 2012 and
$125.0 million aggregate principal amount of senior unsecured,
10-year fixed rate notes with a coupon of 5.25 percent due
September 15, 2015. The 5.125 percent notes and the 5.25 percent
notes were priced at 99.919 percent of par value to yield 5.139
percent and at 99.372 percent of par value to yield 5.332 percent,
respectively. Net proceeds from the offering were used to redeem
all $250.0 million of the Company's outstanding 5.875 percent
senior unsecured notes that were due June 15, 2007 (CUSIP
#648053AA4) and were called for redemption on August 4, 2005 at a
redemption price of 100 percent of their principal amount plus any
interest accrued up to, but excluding, the redemption date, and the
applicable "make-whole" premium relating to such notes. Earnings
Guidance 2005 Guidance Based upon actual results differing from
various assumptions made by the Company regarding the Galileo
Transactions and the redemption of all $250.0 million of the
Company's previously outstanding 5.875 percent senior unsecured
notes that were due June 15, 2007, and taking into account the
Company's third quarter 2005 results of operations, the Company is
revising upwards its 2005 FFO expectations. The Company has revised
its 2005 net income available to common stockholders per share
("EPS") and FFO per share estimates, both on a diluted basis, to
$2.66 to $2.68 and $1.73 to $1.75, respectively, from $2.66 to
$2.70 and $1.69 to $1.73, respectively. The Company's guidance for
2005 EPS and FFO is reconciled below: 2005 EPS - Diluted $2.66 -
$2.68 Add: Depreciation and amortization 0.90 Deduct: Gain on sale
of real estate (1.75) Gain on sale of discontinued operations
(0.08) FFO per Share - Diluted $1.73 - $1.75 2006 Guidance Given
the current economic outlook and management's expectations with
respect to its portfolio performance and capital recycling program,
the Company anticipates 2006 EPS and FFO per share, both on a
diluted basis, to be in the range of $1.01 to $1.07 and $1.80 to
$1.86, respectively. The Company's guidance for 2006 EPS and FFO is
reconciled below: 2006 EPS - Diluted $1.01 - $1.07 Add:
Depreciation and amortization 0.79 FFO per Share - Diluted $1.80 -
$1.86 See footnote 6 in the attached table for an explanation of
the usefulness of FFO. Due to the uncertain nature of property
dispositions and impairments, the Company has assumed no additional
impairment of real estate for 2005 and has assumed no impairments
of real estate for 2006 in its guidance. Any impairment of real
estate will negatively impact both net income and FFO, which may be
material. Dividend For the fourth quarter of 2005, the Company's
Board of Directors declared a cash dividend of $0.3125 per common
share (CUSIP #648053106). On an annualized basis, this is the
equivalent of $1.25 per share. The dividend is payable on January
17, 2006 to common stockholders of record on January 3, 2006. The
Company's shares go ex-dividend on December 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
January 3, 2006, payable on January 17, 2006. 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 January 3,
2006, payable on January 17, 2006. Management Comment "The
productive pace of activity that defined the first half of our year
increased in the third quarter as we completed a variety of
significant operating and financial transactions and positioned
ourselves for 2006 and beyond. In addition to closing the Galileo
Transactions and assimilating the management and leasing of the 120
properties, we continued our program of leveraging tenant
relationships with Kroger, Home Depot and Kmart into new
development and redevelopment opportunities," commented Glenn J.
Rufrano, Chief Executive Officer. Conference Call / Portfolio
Assessment The Company will be hosting a teleconference on
Thursday, October 27, 2005 at 2:00 PM ET. The teleconference can be
accessed by dialing 1-866-202-4367 (International: 1-617-213-8845)
or via the web at http://www.newplan.com/ under Investor
Information; Audio Archives. Please refer to passcode #47832679. A
replay of the teleconference will be available through midnight ET
on November 3, 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
#59521390. 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. In addition, the
Company's 2005 Portfolio Assessment will be available on the
Company's website at http://www.newplan.com/ under Investor
Information; Presentations. These materials are also available in
e-mail or hard copy formats by contacting New Plan Corporate
Communications at or 1-800-468-7526. 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 466 properties,
including 150 properties held through joint ventures, and total
assets of approximately $3.3 billion. The properties are
strategically located across 39 states and include 446 community
and neighborhood shopping centers, primarily grocery or name-brand
discount chain anchored, with approximately 63.5 million square
feet of gross leasable area, and 20 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 Nine
Months Ended September 30, September 30, 2005 2004 2005 2004 Rental
Revenues: Rental income $ 89,398 $ 95,581 $288,438 $282,384
Percentage rents 893 1,202 4,940 4,914 Expense reimbursements
22,466 22,555 76,678 71,383 TOTAL RENTAL REVENUES 112,757 119,338
370,056 358,681 Rental Operating Expenses: Operating costs 17,737
18,628 60,170 59,712 Real estate taxes 15,192 15,868 49,748 45,311
Provision for doubtful accounts 4,520 2,408 9,247 6,584 TOTAL
RENTAL OPERATING EXPENSES 37,449 36,904 119,165 111,607 NET
OPERATING INCOME (1) 75,308 82,434 250,891 247,074 Other Income:
Fee income 3,228 1,406 6,153 3,965 Interest, dividend and other
income 1,837 769 3,574 2,593 Equity in income of unconsolidated
ventures 755 314 1,885 1,103 TOTAL OTHER INCOME 5,820 2,489 11,612
7,661 Other Expenses: Interest expense 39,554 26,150 95,062 79,087
Depreciation and amortization 21,875 22,589 71,071 64,290 General
and administrative 10,166 4,483 20,141 14,647 TOTAL OTHER EXPENSES
71,595 53,222 186,274 158,024 Income before real estate sales,
impairment of real estate and minority interest 9,533 31,701 76,229
96,711 Gain on sale of real estate (2) 186,942 - 186,942 1,217
Impairment of real estate (859) - (859) (43) Minority interest in
income of consolidated partnership and joint ventures (4,359) (203)
(5,775) (939) INCOME FROM CONTINUING OPERATIONS 191,257 31,498
256,537 96,946 Discontinued Operations: Results of discontinued
operations 1,809 1,124 14,677 (2,648) Gain (loss) on sale of
discontinued operations (3)(4)(5) 2,979 (3,093) 4,215 5,546
Impairment of real estate held for sale - (88) - (88) INCOME FROM
DISCONTINUED OPERATIONS 4,788 (2,057) 18,892 2,810 NET INCOME
$196,045 $ 29,441 $275,425 $ 99,756 Preferred dividends (5,475)
(5,458) (16,413) (16,008) NET INCOME AVAILABLE TO COMMON
STOCKHOLDERS - BASIC 190,570 23,983 259,016 83,748 Minority
interest in income of consolidated partnership 4,359 206 4,892 751
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS - DILUTED $194,929 $
24,189 $263,908 $ 84,499 Net income per common share - basic $ 1.84
$ 0.24 $ 2.51 $ 0.84 Net income per common share - diluted 1.82
0.23 2.48 0.82 Funds from operations:(6) Net income available to
common stockholders - diluted $194,929 $ 24,189 $263,908 $ 84,499
Deduct: Minority interest in income of consolidated partnership,
excluding gain allocation (3) (206) (536) (751) Net income
available to common stockholders - basic 194,926 23,983 263,372
83,748 Add: Depreciation and amortization: Continuing operations
real estate assets 21,875 22,589 71,071 64,290 Discontinued
operations real estate assets 397 971 1,755 2,427 Pro rata share of
joint venture real estate assets 947 495 2,139 1,136 Deduct: Gain
on sale of real estate (2)(7) (186,942) - (186,942) (1,217) (Gain)
loss on sale of discontinued operations (4)(7) (451) 3,169 (8,794)
7,131 Pro rata share of joint venture (gain) loss on sale of real
estate(7) (40) 12 (40) 433 FUNDS FROM OPERATIONS - BASIC 30,712
51,219 142,561 157,948 Add: Minority interest in income of
consolidated partnership, excluding gain allocation 3 206 536 751
FUNDS FROM OPERATIONS - DILUTED $ 30,715 $ 51,425 $143,097 $158,699
Funds from operations per share - basic $ 0.30 $ 0.51 $ 1.38 $ 1.58
Funds from operations per share - diluted 0.29 0.50 1.34 1.55 NEW
PLAN EXCEL REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF INCOME (In thousands, except per share amounts and
footnotes) Three Months Ended Nine Months Ended September 30,
September 30, 2005 2004 2005 2004 Funds from operations - diluted $
30,715 $ 51,425 $143,097 $158,699 Add: Impairment of real estate
859 - 859 43 Impairment of real estate held for sale - 88 - 88
FUNDS FROM OPERATIONS - DILUTED (prior calculation) $ 31,574 $
51,513 $143,956 $158,830 Funds from operations per share - diluted
(prior calculation) $ 0.30 $ 0.50 $ 1.35 $ 1.55 Weighted average
common shares outstanding - basic 103,460 101,255 103,157 100,281
ERP partnership units 2,369 1,405 2,258 1,311 Options and
contingently issuable shares 865 998 981 1,034 Convertible debt 89
- 162 - Restricted stock 52 - 65 - Weighted average common shares
outstanding - diluted 106,835 103,658 106,623 102,626 (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 nine months ended September 30, 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, L.P. in 2003. (3)
For the nine months ended September 30, 2004, balance includes
approximately $3.876 million of previously deferred gain incurred
in connection with the Company's sale of 21.5 acres of land at The
Mall at 163rd Street in 2003. (4) For the nine months ended
September 30, 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. Balance also includes approximately $140,000 of
final distributions from Benbrooke Ventures. (5) For the three and
nine months ended September 30, 2005, balance includes
approximately $2.295 million, which represents the Company's gain
on the sale of its ownership interest in BPR West, L.P., a joint
venture in which the Company previously held a 50 percent interest.
(6) 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. To assist investors in understanding the impact of these
changes, the Company also is presenting FFO in accordance with the
methodology historically used by the Company ("prior calculation").
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. The Company also
believes that the presentation of FFO consistent with the guidance
that was in effect until October 1, 2003 is further helpful to
investors because it assists investors in evaluating the Company's
historic operational performance and because it excludes other
times included in the revised calculation of FFO such as
impairments, which also do not relate to and are not indicative of
the Company's operating performance. 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. (7) 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 September 30, 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, Web site:
http://www.newplanexcel.com/
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