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, 2012.
Diluted Funds from Operations (FFO) for the quarter ended April
30, 2012 was $7,915,000 or $0.28 per Class A Common share and $0.25
per Common share, compared to $7,600,000 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 2012, diluted FFO
amounted to $16,146,000 or $0.57 per Class A Common share and $0.52
per Common share compared to $18,411,000 or $0.66 per Class A
Common share and $0.60 per Common share in the corresponding period
of fiscal 2011.
Net income applicable to Class A Common and Common stockholders
was $3,400,000 or $0.12 per diluted Class A Common share and $0.11
per diluted Common share in the second quarter of fiscal 2012
compared to $3,639,000 or $0.13 per diluted Class A Common share
and $0.12 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 2012 was $7,164,000 or $0.25 per
diluted Class A Common share and $0.23 per diluted Common share
compared to $10,515,000 or $0.38 per diluted Class A Common share
and $0.34 per diluted Common share for the same period last
year.
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, CT property prior to
expiration of its lease. The Company re-leased the space to another
grocery store tenant that began paying rent related to the new
lease in August of fiscal 2011. In addition, net income and FFO for
the six month periods ended April 30, 2012 and 2011 were reduced by
acquisition costs of $310,000 and $53,000, respectively, for
property acquisitions in those periods. Prior to fiscal 2010 these
costs were not expensed under generally accepted accounting
principles.
Base rental revenue and net operating income (exclusive of the
$2.99 million lease termination income in fiscal 2011) from
properties owned in the three and six month periods ended April 30,
2012, when compared to the same periods of fiscal 2011, were
relatively unchanged. For the six months ended April 30, 2012
rental revenues and net operating income from properties acquired
in the second half of fiscal 2011 and first half of fiscal 2012
increased by $1,734,000 and $1,196,000, respectively when compared
with the corresponding periods a year earlier. At April 30, 2012,
the percentage of the gross leasable area of the Company’s core
properties that was leased amounted to 91.0%, a decrease of 0.5%
from the end of fiscal 2011 and equal to last quarter. The Company
has three equity investments in unconsolidated joint ventures
(447,000 square feet); at April 30, 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, “It was
a pretty quiet quarter for UBP. Leasing the vacant space in our
portfolio remains our most important focus. We are encouraged by
meetings with potential retailers at the just concluded convention
in Las Vegas of the International Council of Shopping Centers
(“ICSC”) and hope these meetings will lead to the leasing of some
of the current vacancies in our portfolio. We currently have
370,800 square feet of vacant leasable space in our properties, but
we have letters of intent or leases in negotiation for over 30,000
square feet, and have interest from additional retailers on many of
our other vacancies. If these leasing transactions are completed,
it could lead to improved operating results in the latter part of
2012 and beyond. So far in 2012, we have been successful in
identifying and closing two property acquisitions in our core
marketplace. The first was 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. Eastchester NY. is one of the more affluent areas in
Westchester County with a dense population, strong demographics and
high barriers to further development. The second property was
acquired through a “DownREIT” transaction by purchasing an
approximate 2% interest in a newly formed limited liability company
(“LLC”) that will own and operate the Orangetown Shopping Center
(“Orangetown”) in Orangeburg, NY. UBP is the sole managing member
of the newly formed LLC. The property was contributed to the LLC by
the existing owners of Orangetown. UBP will be the manager and
leasing agent for the property and will receive all the available
cash flow of the property over and above a fixed distribution that
is required to be made to the property’s contributing member.
Orangetown is a 74,000 square foot shopping center anchored by a
12,400 square foot CVS. The shopping center, which is 96% occupied,
is leased to CVS and other regional tenants including Orange Farm
Market, Allstate, Dunkin Donuts, Palisades Federal Savings Bank,
Subway, Planet Wings and Twins India Palace. These two property
acquisitions were at reasonable prices and valuations and confirm
the Company’s ability to continue to source and close accretive
acquisitions in our core markets.
Our operating results, same store base rental revenue, and same
store net operating income continue to be flat when compared with
the corresponding period last year since the improvement realized
by new leases entered into in fiscal 2011 and 2012 was largely
offset by new vacancies during the same period. 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. However, we
are confident that we will be able to identify and acquire
additional shopping centers in our core marketplace using 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. At April 30, 2012, our core
portfolio was 91% leased, up modestly from the end of fiscal 2011
but still below our historical norm of 96%. We view this as an
opportunity to grow our earnings by leasing these vacancies.”
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 July 20, 2012 to
stockholders of record on July 6, 2012.
Urstadt Biddle Properties Inc. is a self-administered equity
real estate investment trust which owns or has equity interests in
54 properties containing approximately 4.9 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 170 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.
(Table Follows)
URSTADT BIDDLE PROPERTIES INC. (NYSE:
UBA AND UBP)
THREE AND SIX MONTHS ENDED 2012
RESULTS
(in thousands, except per share data)
Six Months Ended Three Months
Ended April 30, April
30, 2012
2011 2012
2011 Revenues Base rents
$33,857 $32,114
$17,143 $15,971 Recoveries from tenants
10,130 10,764
4,828 5,684 Lease termination income
87 2,988
- - Other income
1,095
1,013 514 698
Total Revenues
45,169 46,879
22,485 22,353
Expenses Property operating
7,155 7,663
3,436
4,427 Property taxes
7,454 7,225
3,702 3,580
Depreciation and amortization
8,383 7,593
4,171 3,806
General and administrative
3,808 3,731
1,861 1,830
Acquisition Costs
310 53
225 53 Directors' fees and
expenses
140 152
69 67 Total Operating Expenses
27,250 26,417
13,464 13,763 Operating
Income 17,919 20,462
9,021 8,590
Non-Operating
Income (Expense): Interest expense
(4,320) (3,807)
(2,285) (1,903) Equity in net income from unconsolidated
joint ventures
(166) 141
(192) 79 Interest, dividends
and other investment income
449
419 224 224
Net Income 13,882 17,215
6,768 6,990
Noncontrolling interests: Net income attributable to
noncontrolling interests
(171)
(153) (94) (77) Net
income attributable to Urstadt Biddle Properties Inc.
13,711
17,062
6,674 6,913 Preferred stock dividends
(6,547) (6,547)
(3,274) (3,274) Net
Income Applicable to Common and Class A Common Stockholders
$7,164 $10,515
$3,400 $3,639 Diluted
Earnings Per Share: Common
$.23 $.34
$.11 $.12
Class A Common
$.25 $.38
$.12 $.13
Dividends Per Share: Common
$.4500
$.4450 $.2250 $.2225
Class A Common
$.4950 $.4900
$.2475 $.2450 Weighted
Average Number of Shares Outstanding Common and Common
Equivalent
8,113 7,881
8,237 7,964 Class A Common and
Class A Common Equivalent
20,748
20,679 20,786 20,709
URSTADT BIDDLE PROPERTIES INC. (NYSE:
UBA AND UBP)
SIX MONTHS AND THREE MONTHS ENDED APRIL
30, 2012 AND 2011
(in thousands, except per share data)
Six Months Ended
April 30,
Three Months Ended
April 30,
2012 2011
2012 2011
Net Income Applicable to Common and Class
A Common
Stockholders
$7,164 $10,515
$3,400 $3,639 Real property
depreciation
6,509 6,061
3,282 3,047 Amortization of
tenant improvements and allowances
1,595 1,241
748
623 Amortization of deferred leasing costs
251 271
128 125 Depreciation and amortization on unconsolidated
joint ventures
627 323
357 166
Funds from Operations Applicable to Common
and Class A
Common Stockholders
$16,146 $18,411
$7,915 $7,600 Funds from
Operations (Diluted) Per Share: Common
$0.52 $0.60
$0.25 $0.25 Class A Common
$0.57 $0.66
$0.28 $0.27
Balance Sheet Highlights (in thousands)
April
30,
October
31,
2012 2011 (Unaudited)
Assets Real Estate investments before accumulated
depreciation $657,101 $631,167
Investments in and advances to unconsolidated joint
ventures $26,694 $26,384
Total Assets $594,792
$576,264 Liabilities Revolving credit
lines $21,900 $41,850
Mortgage notes payable and other loans
$152,139 $118,135 Total
liabilities $189,929 $175,019
Redeemable Preferred Stock
$96,203 $96,203
Redeemable Noncontrolling Interests
$11,608 $2,824 Total
Stockholders’ Equity $297,052
$302,218
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