Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real
estate investment trust, today reported its operating results for
the quarter ended January 31, 2012.
Diluted Funds from Operations (FFO) for the first quarter of
fiscal 2012 was $8,231,000 or $0.29 per Class A Common share and
$0.27 per Common share, compared to $10,811,000 or $0.39 per Class
A Common share and $0.35 per Common share in last year’s first
quarter.
Net income applicable to Class A Common and Common stockholders
was $3,764,000 or $0.13 per diluted Class A Common share and $0.12
per diluted Common share in the first quarter of fiscal 2012
compared to $6,876,000 or $0.25 per diluted Class A Common share
and $0.23 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 leased the space to another grocery store
tenant that began paying rent in August 2011.
Rental revenues and net operating income (exclusive of the $2.99
million lease termination income in fiscal 2011) from properties
owned in both of the three month periods ended January 31, 2012 and
2011 were relatively unchanged as increases in rental rates for
in-place leases in the portfolio and cash flows relating to new
leases were more than offset by additional vacancies in our
portfolio. At January 31, 2012 the percentage of the gross leasable
area of the core properties that was leased amounted to 91%, an
increase of 0.52% from the end of fiscal 2011 but a decrease of
2.63% from the beginning of fiscal 2011. The Company has three
equity investments in unconsolidated joint ventures totaling
447,000 square feet; at January 31, 2012 those properties were
97.1% leased.
Commenting on the quarter’s operating results, Willing L.
Biddle, President and Chief Operating Officer of UBP, said, “While
we are encouraged that we see signs of improvement in the economy
in our marketplace, we still face many substantial challenges in
2012, but we are optimistic that we will meet these challenges.
Leasing the vacant space in our portfolio remains our most
important focus. We currently have 364,000 square feet of vacant
leasable space in our properties, but interest from prospective
tenants has resulted in letters of intent or signed lease deals on
portions of this space covering approximately 57,000 square feet.
If these leasing transactions can be completed, it will mean
improved operating results in the latter part of 2012 and beyond.
In 2011, we were successful in identifying and closing two property
acquisitions in our core marketplace and in the first quarter of
fiscal 2012 we completed the acquisition of the Eastchester Plaza
Shopping Center in the Town of Eastchester, Westchester County, NY.
This property contains 24,000 square feet of leasable space and is
anchored by a CVS Pharmacy. These three acquisitions were at
reasonable prices that will continue to allow the Company to grow.
Eastchester Plaza is located in one of the most affluent towns in
Westchester County with very strong demographics and high barriers
to further development.
Our operating results, same store rental revenue, and same store
net operating income continue to be flat when compared with the
corresponding period of last year since the improvement realized by
new leases entered in fiscal 2011 was largely offset by new
vacancies in fiscal 2011. Looking ahead, another major challenge
the Company faces is increased competition for shopping centers in
our marketplace. This competition continues to push prices for
those centers to very high levels. We are confident that we will
still be able to identify and acquire grocery anchored shopping
centers in our core marketplace using our proven strategies at
prices that will be accretive to our FFO. We will also continue to
focus on improving our existing portfolio to strengthen it for the
long term. In February 2012, we completed a $28 million mortgage
financing on a previously unencumbered property. The mortgage has a
term of ten years and requires monthly payments of principal and
interest at a fixed rate of interest of 4.85%. Proceeds from the
financing were used to re-pay our unsecured revolving credit
facility. At January 31, 2012, our core portfolio was 91% leased,
up modestly from the end of fiscal 2011 but still below our
historical norm of 96%, so we still have a ways to go to get back
to that level.”
At their regular meeting, the Directors of the Company approved
a quarterly dividend on shares of the company’s Class A Common
Stock and Common Stock. The quarterly dividend rates approved were
$0.2475 for each share of Class A Common Stock and $0.225 for each
share of Common Stock. The dividends are payable April 20, 2012 to
stockholders of record on April 5, 2012.
Urstadt Biddle Properties Inc. is a self-administered equity
real estate investment trust which owns or has equity interests in
53 properties containing approximately 4.8 million square feet of
space. Listed on the New York Stock Exchange since 1970, it
provides investors with a means of participating in ownership of
income-producing properties. It has paid 169 consecutive quarters
of uninterrupted dividends to its shareholders since its inception
and raised its dividend to its shareholders for the last 18
consecutive years.
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 2012 RESULTS
(in thousands, except per share data)
Three Months Ended January 31,
2012 2011
Revenues Base rents $16,714 $16,143 Recoveries from tenants
5,302 5,080 Lease termination income 87 2,988 Other income
581 315 Total Revenues
22,684 24,526 Operating
Expenses Property operating 3,719 3,236 Property taxes 3,752
3,645 Depreciation and amortization 4,212 3,787 General and
administrative 1,947 1,901 Acquisition costs 85 - Directors' fees
and expenses
71 85 Total Operating
Expenses
13,786 12,654
Operating Income 8,898 11,872
Non-Operating Income
(Expense): Interest expense (2,035) (1,904) Equity in net
income from unconsolidated joint ventures 26 62 Interest, dividends
and other investment income
225 195
Net Income 7,114 10,225
Noncontrolling
interests Net income attributable to noncontrolling interest
(77) (76) Net income attributable to
Urstadt Biddle Properties Inc. 7,037 10,149 Preferred stock
dividends
(3,273) (3,273) Net
Income Applicable to Common and Class A Common Stockholders
$3,764 $6,876 Diluted Earnings
Per Share: Common:
$.12 $.23 Class A
Common
$.13 $.25 Dividends Per
Share: Common
$.2250 $.2225 Class A
Common
$.2475 $.2450 Weighted
Average Number of Shares Outstanding (Diluted): Common and
Common Equivalent
7,990 7,798 Class A
Common and Class A Common Equivalent
20,710
20,650 URSTADT BIDDLE PROPERTIES INC.
(NYSE: UBA AND UBP) FIRST QUARTER 2012 RESULTS
(in thousands, except per share data)
Three Months Ended January 31,
2012 2011
Reconciliation of Net Income Available to Common and Class A
Common Stockholders To Funds From Operations: Net Income
Applicable to Common and Class A Common Stockholders $3,764 $6,876
Plus: Real property depreciation 3,227 3,014 Amortization of
tenant improvements and allowances 847 618 Amortization of deferred
leasing costs 123 146 Depreciation and amortization on
unconsolidated joint ventures
270 157
Funds from Operations Applicable to Common and Class A
Common Stockholders $8,231 $10,811
Funds from Operations (Diluted) Per Share: Class A
Common
$.29 $.39 Common
$.27
$.35 Balance Sheet Highlights
(in thousands) January 31, October 31,
2012 2011 (Unaudited)
Assets
Real Estate investments before accumulated depreciation
$641,823 $631,167
Investments in and advances to unconsolidated joint ventures
$26,207 $26,384
Total Assets $584,120
$576,264
Liabilities
Revolving credit lines $46,850
$41,850 Mortgage notes payable and
other loans $121,055
$118,135 Total liabilities
$185,249 $175,019
Redeemable Preferred Stock $96,203
$96,203 Redeemable Noncontrolling
Interests $2,868 $2,824
Total Stockholders’ Equity
$299,800 $302,218
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