UBA Urstadt Biddle Properties

Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real estate investment trust, today announced its second quarter and six months financial results for the period ended April 30, 2011.

Diluted Funds from Operations (FFO) for the quarter ended April 30, 2011 was $7,600,000 or $0.27 per Class A Common share and $0.25 per Common share, compared to $6,784,000 or $0.27 per Class A Common share and $0.25 per Common share in last year’s second quarter. For the first six months of fiscal 2011, diluted FFO amounted to $18,411,000 or $0.66 per Class A Common share and $0.60 per Common share compared to $13,478,000 or $0.54 per Class A Common share and $0.49 per Common share in the corresponding period of fiscal 2010.

Net income applicable to Class A Common and Common stockholders was $3,639,000 or $0.13 per diluted Class A Common share and $0.12 per diluted Common share in the second quarter of fiscal 2011 compared to $2,886,000 or $0.12 per diluted Class A Common share and $0.10 per diluted Common share in the same quarter last year. Net income applicable to Common and Class A Common stockholders for the first six months of fiscal 2011 was $10,515,000 or $0.38 per diluted Class A Common share and $0.34 per diluted Common share compared to $6,026,000 or $0.24 per diluted Class A Common share and $0.22 per diluted Common share for the same period last year. The per share amounts for both FFO and net income in fiscal 2011 includes the effect of the Company issuing 2.5 million Class A Common shares in a follow on public offering in September of 2010.

FFO and net income applicable to Class A Common and Common stockholders for the six months ended April 30, 2011 included lease termination income in the amount of $2.99 million 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 fourth quarter of fiscal 2011 when the tenant opens for business. In addition, net income and FFO for the six month periods ended April 30, 2011 and 2010 were reduced by acquisition costs of $53,000 and $156,000, respectively, for property acquisitions in those periods. Prior to fiscal 2010 these costs were not expensed under generally accepted accounting principles.

Rental revenues and net operating income (exclusive of the $2.99 million lease termination income) from properties owned in the three and six month periods ended April 30, 2011, when compared to the same periods of fiscal 2010 were relatively unchanged. This primarily resulted from four vacancies at three properties during the first six months of fiscal 2011 when compared with the same period in fiscal 2010, offset by new leasing the Company completed in the second half of fiscal 2010 and the first half of fiscal 2011 at previously vacant space-predominantly at four properties (seven spaces). For the six months ended April 30, 2011 rental revenues and net operating income from properties acquired in the second half of fiscal 2010 increased by $1,726,000 and $1,168,000, respectively when compared with the corresponding period of fiscal 2010. At April 30, 2011 the percentage of the gross leasable area of the Company’s core properties that was leased amounted to 92.6%, a decrease of 1.16% from April 30, 2010. The Company has three equity investments in unconsolidated joint ventures (447,000 square feet); at April 30, 2011 those properties were 98.5% leased.

Commenting on the quarter’s operating results, Willing L. Biddle, President and Chief Operating Officer of UBP, said, “We are continuing to see a slow improvement, in the leasing and property acquisition environment and are looking forward to seeing the momentum that we have generated over the last few quarters continue into the remainder of fiscal 2011. During the last three quarters of fiscal 2010 and first half of fiscal 2011 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), Birchtree Learning Center (14,000 sf), and West Marine (13,000 sf). Those leasing gains were offset by certain vacancies in the first half of fiscal 2011-Daffy’s (27,000 sf), Old Navy (25,000 sf), ShopRite (55,000 sf). At April 30, 2011 our core portfolio was 92.6% leased. In the second quarter of fiscal 2011 we purchased the Fairfield Plaza shopping center in New Milford, CT., a 72,000 square foot property anchored by TJ Maxx and Staples and last year we purchased four grocery anchored properties in our core market. We have a good pipeline of acquisitions and hope to continue to add to our asset base over the balance of the year.”

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.

(Table Follows)

           

URSTADT BIDDLE PROPERTIES INC. (NYSE: UBA AND UBP)

THREE AND SIX MONTHS ENDED 2011 RESULTS

(in thousands, except per share data)

 

Six Months Ended

Three Months Ended

April 30,

April 30,

2011

     

2010

2011

     

2010

Revenues Base rents $ 32,114 $ 31,191 $ 15,971 $ 15,691 Recoveries from tenants 10,764 9,964 5,684 5,140 Lease termination income 2,988 47 - 47 Other income

1,013

516

698

262

Total Revenues

46,879

41,718

22,353

21,140

  Expenses Property operating 7,663 7,318 4,427 3,821 Property taxes 7,225 6,647 3,580 3,319 Depreciation and amortization 7,593 7,177 3,806 3,608 General and administrative 3,731 3,527 1,830 1,801 Acquisition costs 53 156 53 156 Directors' fees and expenses

152

174

67

84

Total Operating Expenses

26,417

24,999

13,763

12,789

  Operating Income 20,462 16,719 8,590 8,351 Non-Operating Income (Expense): Interest expense (3,804 ) (3,622 ) (1,903 ) (1,784 ) Equity in net income from unconsolidated joint ventures 141 29 79 29 Other expense (3 ) (449 ) - (389 ) Interest, dividends and other investment income

419

50

224

29

  Net Income 17,215 12,727 6,990 6,236   Noncontrolling interests: Net income attributable to noncontrolling interests

(153

)

(154

)

(77

)

(76

)

Net income attributable to Urstadt Biddle Properties Inc. 17,062 12,573 6,913 6,160 Preferred stock dividends (6,547 ) (6,547 ) (3,274 ) (3,274 )   Net Income Applicable to Common and Class A Common Stockholders $ 10,515   $ 6,026   $ 3,639   $ 2,886     Diluted Earnings Per Share: Common $ .34 $ .22 $ .12 $ .10 Class A Common $ .38 $ .24 $ .13 $ .12   Dividends Per Share: Common $ .4450   $ .4400   $ .2225   $ .2200   Class A Common $ .4900   $ .4850   $ .2450   $ .2425     Weighted Average Number of Shares Outstanding: Common and Common Equivalent   7,881     7,530     7,964     7,685   Class A Common and Class A Common Equivalent   20,679     18,051     20,709     18,115                       URSTADT BIDDLE PROPERTIES INC. (NYSE: UBA AND UBP) SIX MONTHS AND THREE MONTHS ENDED APRIL 30, 2011 AND 2010

(in thousands, except per share data)

 

Six Months Ended

April 30,

Three Months Ended

April 30,

2011

     

2010

2011

     

2010

Net Income Applicable to Common and Class A Common Stockholders $ 10,515 $ 6,026 $ 3,639 $ 2,886   Real property depreciation 6,061 5,677 3,047 2,847 Amortization of tenant improvements and allowances 1,241 1,244 623 633 Amortization of deferred leasing costs 271 231 125 118 Depreciation and amortization on unconsolidated joint ventures

323

300

166

300

Funds from Operations Applicable to Common and Class A Common Stockholders $ 18,411 $ 13,478 $ 7,600 $ 6,784   Funds from Operations (Diluted) Per Share: Common $ 0.60 $ 0.49 $ 0.25 $ 0.25 Class A Common $ 0.66 $ 0.54 $ 0.27 $ 0.27   Balance Sheet Highlights             (in thousands) April

30,

October31,

2011

2010

(Unaudited) Assets Real Estate investments before accumulated depreciation

$611,198

$601,222

  Investments in and advances to unconsolidated joint ventures

$25,348

$24,850

  Total Assets $557,970 $557,053   Liabilities Revolving credit lines

$14,600

$11,600

  Mortgage notes payable and other loans

$122,676

$118,202

  Total liabilities

$151,347

$142,069

  Redeemable Preferred Stock

$96,203

$96,203

  Redeemable Noncontrolling Interests

$4,067

$11,330

  Total Stockholders’ Equity $306,353 $307,451