Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real
estate investment trust, today announced its fourth quarter and
full year financial results for the fiscal year ended October 31,
2014. The company also announced an increase in the quarterly
dividend rate on its Class A Common stock.
Diluted funds from operations (“FFO”) for the quarter ended
October 31, 2014, amounted to $8,049,000 or $0.23 per Common share
and $0.26 per Class A Common share compared with $9,101,000 or
$0.26 per Common share and $0.29 per Class A Common share in last
year’s fourth quarter. For the year ended October 31, 2014, diluted
FFO amounted to $33,032,000 or $0.95 per Common Share and $1.06 per
Class A Common share compared with $29,506,000 or $0.86 per Common
Share and $0.95 per Class A Common share in fiscal 2013. The FFO
amounts above include several significant one-time items in fiscal
2014 and fiscal 2013. In an effort to assist investors in
analyzing changes to FFO, we have included a second FFO
reconciliation table which explains the effect of these one-time
items on the company’s FFO per share.
Net income applicable to Common and Class A Common stockholders
for the quarter ended October 31, 2014, amounted to $27,019,000 or
$0.77 per diluted Common share and $0.87 per diluted Class A Common
share compared with $3,992,000 or $0.12 per diluted Common share
and $0.13 per diluted Class A Common share in last year’s fourth
quarter. For the year ended October 31, 2014, net income applicable
to Common and Class A Common stockholders was $49,469,000 or $1.42
per diluted Common share and $1.59 per diluted Class A Common share
compared to $10,613,000 or $0.31 per diluted Common share and $0.34
per diluted Class A Common share in fiscal 2013. Net income
applicable to Class A Common and Common stockholders for the fiscal
year ended October 31, 2014, includes a $36.9 million gain on sale
of properties and a preferred stock redemption charge of $1.87
million related to the announced redemption of the Company’s Series
D Cumulative Preferred Stock.
The per share amounts for both FFO and net income in the fiscal
year ended 2013 include the dilutive effect of the issuance of 2.5
million Class A Common shares in a follow-on public offering and
5.175 million shares of a new Series F preferred stock, both in
October 2012. The common stock offering raised net proceeds of
$47.9 million and the preferred stock offering raised an additional
$124.8 million, which funds were not fully invested until May 2013.
With respect to those funds, $100 million of proceeds from the
preferred stock offering was used to redeem the Series E preferred
stock in November 2013 and the remaining Series C preferred stock
outstanding, which was fully redeemed by May 2013. As a result of
these redemptions, the company incurred charges to expense the
original issue costs of the preferred stock of $3.8 million in the
first quarter of fiscal 2013, $406,000 in the second quarter of
fiscal 2013 and $68,000 in the third quarter of fiscal 2013. The
first two quarters of fiscal 2013 each included payment of $476,000
in preferred stock dividends related to the Series C preferred
stock and the third quarter of fiscal 2013 included payment of
$153,000 in preferred stock dividends related to the Series C
preferred stock. The first three quarters of fiscal 2014 did not
include any dividends on the Series C preferred stock as all such
shares were redeemed by May of fiscal 2013. In addition, the per
share amounts for FFO and net income for the years ended October
31, 2014 and 2013, include one-time property acquisition costs of
$666,000 and $857,000, respectively.
At October 31, 2014, the company’s consolidated core properties
were 94.8% leased (versus 93.3% at the end of fiscal 2013) and
94.2% occupied. The above percentages exclude the company’s
unconsolidated joint ventures and the company’s White Plains
property. In November, 2014, the company obtained a zoning change
from the City of White Plains to convert this property to a higher
and better use. On this basis, the company is maintaining vacancies
to make potential redevelopment possible. At October 31, 2014, the
company had equity interests in seven unconsolidated joint ventures
(738,000 square feet). At October 31, 2014, these joint ventures
were approximately 97.7% leased.
Commenting on the quarter’s operating results, Willing L.
Biddle, President and CEO of UBP, said “During our fourth quarter
we had continued success with one of the company’s most important
priorities which has been, and will continue to be, leasing the
remaining vacant space in our portfolio. The percentage of our
portfolio leased in the fourth quarter increased to 94.8%, which is
the highest percentage it has been in quite some time. The main
reason for the increased percentage, when compared to the beginning
of fiscal 2014, is that prior to the fourth quarter we completed
the re-tenanting of nearly all of the previously vacant space in
our Meriden, CT shopping center and we have completed the
re-development of our Chilmark center in Briarcliff Manor, NY,
which included delivering a new 14,000 square foot store to CVS on
August 1. The rents generated by this new leasing allowed the
company to reach over $100 million in annual revenues for the first
time in the company’s history. We also reached a milestone
regarding the re-development of the Westchester Pavilion center in
White Plains, NY, when the City of White Plains approved a zoning
change that will permit the 187,000 square foot property to be
redeveloped with a significantly denser mixed use development of up
to 860,000 square feet. We are working on preliminary site plan
approval for that re-development. Also in fiscal 2014, we completed
the long standing goal of improving our already best-in-class
investment property portfolio by selling our two Chrysler warehouse
properties and our Springfield, Massachusetts property as those
properties no longer met our investment objectives. Net proceeds
from those sales were reinvested into retail properties located in
our core market-place. These transactions have helped to fortify
our already strong balance sheet.”
Continuing, Mr. Biddle said, “Although the competition for
retail properties in our primary marketplace remains extremely
competitive, we have a number of grocery anchored retail properties
in the pipeline which meet our investment objectives. At the end of
the year, we acquired a 51% partnership interest in an entity that
owns the McLean Plaza Shopping Center in Yonkers, N.Y. McLean Plaza
is anchored by a 35,000 square foot A&P Supermarket. In
addition, after year-end, as announced in our press release dated
December 11, 2014, we acquired four shopping centers in Northern
New Jersey for an aggregate purchase price of $124.55 million. The
combined square footage of these properties is 375,000 square feet.
Two of the properties are anchored by grocery stores and two of the
properties are anchored by nationally recognized pharmacy tenants.
These four properties, coupled with our investment in McLean Plaza
and potential acquisitions in our pipeline, will help us maintain
the acquisition momentum into 2015 and beyond. We financed a
portion of these acquisitions with a follow-on Class A Common stock
offering that we completed in November 2014 at a price per share
close to the stock’s all-time high. The offering was well received
by investors and we are very pleased that the investment community
continues to be enthusiastic about the direction of the company. In
addition, in late October we completed a $75 million offering of a
new series of 6.75% preferred stock. This new series of preferred
stock was priced with the lowest preferred stock coupon in the
company’s history. We used $61.3 million of the proceeds to retire
our higher yielding 7.5% Series D preferred stock which will save
the company over $450,000 per annum in preferred stock
dividends.”
UBP Announces an Increase in Dividends to its Shareholders
for the Twenty-first Consecutive Year
At their regular December meeting, the company’s Directors
approved an increase in the quarterly dividend rate on shares of
the company’s Class A Common stock. The quarterly dividend rate
declared for Class A Common stock was increased to $0.255 per
share, which represents an annualized increase of $0.01 per share
for the Class A Common shares. The Board of Directors declared a
quarterly dividend for the Common shares of $0.225 per share,
unchanged from the prior quarter. The $0.01 increase on the Class A
Common Stock dividend represents the twenty-first consecutive year
that the company has increased total dividends to its shareholders.
The Class A Common and Common dividends are payable January 16,
2015 to stockholders of record on January 5, 2015.
Urstadt Biddle Properties Inc. is a self-administered equity
real estate investment trust which owns or has equity interests in
74 properties containing approximately 5.1 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 179 consecutive quarters
of uninterrupted dividends to its shareholders since its inception
and has raised total dividends to its shareholders for the last 21
consecutive years.
Non-GAAP Financial MeasureFunds 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 accounting principles generally accepted in the
United States of America (“U.S. GAAP”), 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 U.S. 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. This quarter, the company also has presented an
alternative table of reconciliation between Net Income Available to
Common and Class A Common Stockholders to FFO, removing the effects
of preferred stock redemption costs, excess preferred stock
dividends, property acquisition costs and gains on the sale of
marketable equity securities from both fiscal 2013 and fiscal 2014
operating results.
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)FISCAL YEAR AND FOURTH QUARTER 2014 RESULTS(in
thousands, except per share data)
Fiscal Year Ended Three Months
Ended October 31, October 31,
2014 2013
2014 2013 (Unaudited)
(Unaudited) (Unaudited)
Revenues Base rents
$75,099 $70,052
$19,391 $18,105 Recoveries from
tenants
24,947 22,594
6,169 5,527 Lease termination
income
183 214
- 66 Other income
2,099 2,343
666 623 Total Revenues
102,328 95,203
26,226 24,321
Expenses Property operating
18,926 17,471
4,213 3,859 Property taxes
16,997 15,524
4,225
3,976 Depreciation and amortization
19,249 17,769
5,053 4,865 General and administrative
8,016 8,211
1,942 1,966 Provision for tenant credit losses
917
958
323 260 Acquisition costs
666 857
190 42
Directors' fees and expenses
314
337 71 87 Total
Operating Expenses
65,085 61,127
16,017 15,055 Operating
Income 37,243 34,076
10,209 9,266
Non-Operating Income (Expense): Interest expense
(10,235) (9,094)
(2,624) (2,320) Gain on sale of
marketable securities
- 1,460
- - Gain on sale of
properties
24,345 -
24,345 - Equity in net income
(loss) from unconsolidated joint ventures
1,604 1,318
508 368 Interest, dividends and other investment income
134 1,345 56
(36) Income from Continuing Operations Before
Discontinued Operations 53,091 29,105
32,494
7,278
Discontinued Operations (Note 1): Income from
discontinued operations
141 1,308
- 318
Gain on
sale of properties 12,526 -
- - Income from discontinued
operations 12,667 1,308
- 318 Net Income
65,758 30,413
32,494 7,596
Noncontrolling
interests: Net income attributable to noncontrolling interests
(607) (618)
(152) (151) Net income
attributable to Urstadt Biddle Properties Inc. 65,151
29,795
32,342 7,445 Preferred stock dividends
(13,812) (14,949)
(3,453) (3,453) Redemption of
preferred stock
(1,870) (4,233)
(1,870) - Net Income Applicable
to Common and Class A Common Stockholders
$49,469 $10,613
$27,019 $3,992 Diluted
Earnings Per Share: Per Common Share: Income from continuing
operations
$1.06 $0.27
$0.77 $0.11 Income from
discontinued operations
$0.36
$0.04 $- $0.01 Net
Income Applicable to Common Stockholders
$1.42 $0.31
$0.77 $0.12 Per Class A
Common Share: Income from continuing operations
$1.19 $0.30
$0.87 $0.12 Income from discontinued operations
$0.40 $0.04 $-
$0.01 Net Income Applicable to Class A Common
Stockholders $1.59 $0.34
$0.87 $0.13 Weighted
Average Number of Diluted Shares Outstanding: Common and Common
Equivalent
8,536 8,383
8,650 8,444 Class A Common and
Class A Common Equivalent
23,427
23,357 23,472 23,389
URSTADT BIDDLE PROPERTIES INC. (NYSE: UBA
AND UBP)FISCAL YEAR AND FOURTH QUARTER ENDED 2014
RESULTS(in thousands, except per share data)
Reconciliation of Net Income Available
to Common and Class A Common Stockholders To Funds From
Operations:
Fiscal Year Ended
October 31,
Three Months Ended
October 31,
2014 2013
2014 2013 Net Income
Applicable to Common and Class A Common Stockholders
$49,469
$10,613
$27,019 $3,992 Real property depreciation
15,020 14,147
3,950 3,712 Amortization of tenant
improvements and allowances
3,298 2,957
968 892
Amortization of deferred leasing costs
520 593
118
242 Depreciation and amortization of discontinued operations
341 47
- - Depreciation and amortization on
unconsolidated joint ventures
1,255 974
340 263
(Gain) Loss on sale of property
(36,871)
175 (24,346) - Funds
from Operations Applicable to Common and Class A Common
Stockholders
$33,032 $29,506
$8,049 $9,101 Funds from
Operations (Diluted) Per Share: Common
$0.95 $0.86
$0.23 $0.26 Class A Common
$1.06 $0.95
$0.26 $0.29
The following table reconciles
the company’s net income available to Common and Class A Common
Stockholders to Funds From Operations for the three months and
fiscal year ended October 31, 2014 after removing the preferred
stock redemption charges and acquisition costs in the 2014 columns
and the preferred stock redemption charges, excess preferred stock
dividends, property acquisition costs and gain on marketable
securities in the 2013 columns. (See Note 1).
Reconciliation of Net Income Available
to Common and Class A Common Stockholders To
Recurring Funds From Operations:
Fiscal Year Ended
October 31,
Three Months Ended
October 31,
2014 2013
2014 2013 Net Income
Applicable to Common and Class A Common Stockholders
$49,469
$10,613
$27,019 $3,992 Add: Redemption of preferred stock
charges
1,870 4,233
1,870 - Add: Excess preferred
stock dividends (Note 1)
- 1,105
- - Add: Property
Acquisition Costs
666 857
190 42 Less: (Gain) on sale
of marketable equity securities
-
(1,460) - - Net
Income Applicable to Common and Class A Common Stockholders
52,005 15,348
29,079 4,034 Real property
depreciation
15,020 14,147
3,950 3,712 Amortization
of tenant improvements and allowances
3,298 2,957
968
892 Amortization of deferred leasing costs
520 593
118 242 Depreciation and amortization of discontinued
operations
341 47
- - Depreciation and amortization
on unconsolidated joint ventures
1,255 974
340 263
Loss on sale of property
(36,871)
175 (24,346) - Funds
from Operations Applicable to Common and Class A Common
Stockholders
$35,568 $34,241
$10,109 $9,143 Funds
from Operations (Diluted) Per Share: Common
$1.02 $1.00
$.29 $0.27 Class A Common
$1.15 $1.11
$.32 $0.30
Note 1 – The Company sold preferred
stock in October 2012 for the main purpose of redeeming its Series
E and Series C preferred stock. The company redeemed the Series E
on November 21, 2012 and redeemed the Series C on May 29, 2013.
Until this redemption was completed, the Company incurred excess
preferred stock dividends in fiscal 2013 as stated in the chart
above.
Urstadt Biddle Properties Inc.Balance
Sheet Highlights(in thousands)
October 31, October 31,
2014 2013 (Unaudited)
Assets Cash and Cash Equivalents
$73,029 $2,945 Real
Estate investments before accumulated depreciation
$830,304 $732,159
Investments in and advances to unconsolidated joint ventures
$39,213 $31,432 Total
Assets $819,005 $650,026
Liabilities Revolving credit lines
$15,550 $9,250 Unsecured
term loan $25,000 $-
Mortgage notes payable and other loans
$205,147 $166,246 Total
Liabilities $325,098 $192,268
Redeemable Noncontrolling Interests
$18,864 $11,843 Total
Stockholders’ Equity $475,043
$445,915
Urstadt Biddle Properties Inc.Willing L. Biddle,
203-863-8200CEOorJohn T. Hayes, 203-863-8200CFO
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