Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real
estate investment trust, today reported its operating results for
the quarter ended January 31, 2011.
Diluted Funds from Operations (FFO) for the first quarter of
fiscal 2011 was $10,811,000 or $0.39 per Class A Common share and
$0.35 per Common share, compared to $6,694,000 or $0.27 per Class A
Common share and $0.24 per Common share in last year’s first
quarter.
Net income applicable to Class A Common and Common stockholders
was $6,876,000 or $0.25 per diluted Class A Common share and $0.23
per diluted Common share in the first quarter of fiscal 2011
compared to $3,140,000 or $0.13 per diluted Class A Common share
and $0.11 per diluted Common share in the same quarter last
year.
FFO and net income applicable to Class A Common and Common
stockholders for the quarter ended January 31, 2011 included lease
termination income in the amount of $2,988,000 relating to a lease
termination settlement with a grocery store tenant that vacated its
space in the Company’s Meriden property prior to expiration of its
lease. The Company has re-leased the space to another grocery store
tenant and should begin accruing rent related to the new lease in
the third or fourth quarter of fiscal 2011 when the tenant opens
for business.
Rental revenues and net operating income (exclusive of the $2.9
million lease termination income) from properties owned in the
three months ended January 31, 2011, when compared to the same
period of fiscal 2010, increased by approximately $300,000 and
$460,000, respectively, as a result of the increased leased
percentage, as well as increases in base rents in the existing
lease portfolio. In addition, new leasing in the last three
quarters of fiscal 2010 caused an increase in the amount the
Company was able to accrue for common area maintenance and real
estate tax rental revenue at some of the Company’s core properties.
At January 31, 2011 the percentage of the gross leasable area of
the core properties that was leased amounted to 93.40%, an increase
of 1.39% from the beginning of fiscal 2010. The Company has three
equity investments in unconsolidated joint ventures (447,000 square
feet); at January 31, 2011 those properties were 91.4% leased.
Commenting on the quarter’s operating results, Willing L.
Biddle, President and Chief Operating Officer of UBP, said, “As
discussed in the last few quarters we are continuing to see an
improvement, albeit slow, in the leasing and property acquisition
environment and are looking forward to seeing the momentum that we
have created over the last few quarters continue into the remainder
of fiscal 2011. During the last three quarters of fiscal 2010 we
were able to lease previously vacant space to Buffalo Wild Wings
(8,000 sf), Chuck E Cheese (15,000 sf), Marshall’s Shoes (11,000
sf), AutoZone (7,000 sf), Okinawa Japanese Steak House (6,000 sf)
and Birchtree Learning Center (14,000 sf) at an average base rent
of $20.15 per square foot per annum, which has helped bolster our
results in the first quarter of fiscal 2011 when compared with the
corresponding period last year. At January 31, 2011 our core
portfolio was 93.4% leased. Last year we purchased four grocery
anchored properties in our core market. We purchased a 231,000 sf
Stop & Shop and Wal-Mart anchored center in New Milford, CT, a
28,000 sf mixed use property anchored by Mrs. Green’s Natural
Market in Katonah, NY, and a 66.7% equity interest in a 193,000 sf
shopping center in Carmel, NY anchored by a Hannaford Brothers
Supermarket. We also acquired an equity interest in a 247,000 sf
Shop Rite anchored shopping center on Central Avenue in Scarsdale,
NY. These are all quality properties located within our target
market that were acquired in off-market transactions. So far in
fiscal 2011 we have entered into a contract to purchase a 72,000
square foot shopping center in New Milford, CT for $10.8 million.
In addition, Company entities purchased, at an attractive return
for our shareholders, the remaining 10% limited partnership
interests in the limited partnership which owns the Ridgeway
Shopping Center in downtown Stamford, CT for $7.4 million. We are
fortunate to have the resources and balance sheet strength to buy
the quality properties that we seek during dips in the real estate
cycle. Our disciplined acquisition program continues to serve us
well.”
Non-GAAP Financial Measure
Funds from Operations (“FFO”)
The Company considers FFO to be a meaningful additional measure
of operating performance because it primarily excludes the
assumption that the value of its real estate assets diminishes
predictably over time and industry analysts have accepted it as a
performance measure. FFO is presented to assist investors in
analyzing the performance of the Company. The Company reports FFO
in addition to net income applicable to common shareholders and net
cash provided by operating activities. FFO is helpful as it
excludes various items included in net income that are not
indicative of the Company’s operating performance, such as gains
(or losses) from sales of property and depreciation and
amortization. The Company has adopted the definition suggested by
the National Association of Real Estate Investment Trusts
(“NAREIT”). The Company defines FFO as net income 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 joint ventures. FFO does not represent cash flows
from operating activities in accordance with GAAP and is not
indicative of cash available to fund cash needs. FFO should not be
considered as an alternative to net income as an indicator of the
Company’s operating performance or as an alternative to cash flow
as a measure of liquidity. Since all companies do not calculate FFO
in a similar fashion, the Company’s calculation of FFO presented
herein may not be comparable to similarly titled measures as
reported by other companies.
Certain statements contained herein 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, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among other
things, risks associated with the timing of and costs associated
with property improvements, financing commitments and general
competitive factors.
URSTADT BIDDLE PROPERTIES INC. (NYSE:
UBA AND UBP)
FIRST QUARTER 2011 RESULTS
(in thousands, except per share
data)
Three Months Ended
January 31, 2011
2010 Revenues Base rents $ 16,143 $
15,500 Recoveries from tenants 5,080 4,824 Lease termination income
2,988 - Mortgage interest and other
315
254 Total Revenues
24,526 20,578
Operating Expenses Property operating 3,236 3,497 Property
taxes 3,645 3,328 Depreciation and amortization 3,787 3,569 General
and administrative 1,901 1,726 Directors' fees and expenses
85 90 Total
Operating Expenses
12,654
12,210 Operating Income 11,872
8,368
Non-Operating Income (Expense): Interest expense
(1,901 ) (1,838 ) Equity in net income from unconsolidated joint
ventures 62 - Other expense (3 ) (60 ) Interest, dividends and
other investment income
195
21 Net Income 10,225 6,491
Noncontrolling interests Net income attributable to
noncontrolling interest
(76 )
(78 ) Net income attributable
to Urstadt Biddle Properties Inc. 10,149 6,413 Preferred stock
dividends
(3,273 )
(3,273 ) Net Income Applicable
to Common and Class A Common Stockholders $
6,876 $ 3,140
Diluted Earnings Per Share: Common: $ .23 $ .11 Class
A Common $ .25 $ .13
Dividends Per Share: Common
$ .2225 $
.2200 Class A Common
$
.2450 $ .2425
Weighted Average Number of Shares Outstanding
(Diluted): Common and Common Equivalent
7,798 7,493 Class A
Common and Class A Common Equivalent
20,650
18,032
URSTADT BIDDLE PROPERTIES INC. (NYSE:
UBA AND UBP)
FIRST QUARTER 2011 RESULTS
(in thousands, except per share data)
Three Months Ended January 31,
2011 2010
Reconciliation of Net Income Available
to Common and Class A CommonStockholders To Funds From
Operations:
Net Income Applicable to Common and Class A Common
Stockholders $ 6,876 $ 3,140 Plus: Real property
depreciation 3,014 2,830 Amortization of tenant improvements and
allowances 618 611 Amortization of deferred leasing costs 146 113
Depreciation and amortization on
unconsolidated joint ventures
157 - Funds from
Operations Applicable to Common and Class A Common Stockholders
$ 10,811 $
6,694 Funds from Operations (Diluted) Per
Share: Class A Common
$ .39
$ .27 Common
$
.35 $ .24
Balance Sheet Highlights
(in thousands)
January 31,
October 31,
2011 2010 (Unaudited)
Assets Real Estate investments before accumulated
depreciation $ 600,237
$ 601,222
Investments in and advances to unconsolidated joint ventures
$ 25,342
$ 24,850 Total
Assets $ 554,161
$ 557,053
Liabilities Revolving credit lines
$ 11,600
$ 11,600 Mortgage
notes payable and other loans $
118,326 $
118,202 Total liabilities
$ 145,344
$ 142,069
Redeemable Preferred Stock $
96,203 $
96,203 Redeemable Noncontrolling
Interests $ 4,069
$ 11,330 Total
Stockholders’ Equity $
308,545 $
307,451
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