Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real
estate investment trust, today reported financial and operating
results for the three and six months ended April 30, 2020, and
provided information regarding financial and operational activities
in light of the ongoing COVID-19 pandemic.
The following are statistics about our portfolio that are useful
in assessing the impact of Covid-19 on our business:
COVID-19 UPDATE (as of
May 22, 2020)
- Of our 81 properties, 74 are shopping centers and/or
free-standing, net-leased retail bank or restaurant properties. The
remaining properties are small two-story suburban office buildings
in Greenwich, CT and Bronxville, NY and a childcare center in
Chester, NJ.
- 72 of our shopping centers and/or free-standing, net-leased
retail bank or restaurant properties are open and operating (two
restaurant properties are closed).
- 68.7% of our tenants, based on gross leasable area (“GLA”), are
designated “essential businesses” or are otherwise permitted to
operate through curbside pick-up and other modified operating
procedures in accordance with state guidelines.
- 87.5% of our tenants designated as “essential businesses” or
otherwise permitted to operate are open and operating (based on
GLA).
- 62.7% of our total tenants are open and operating (based on
GLA).
- We have received 339 rent relief requests from our tenants, out
of approximately 900 tenants in our consolidated portfolio. Our
plan is to work with our tenants, and on a case-by-case basis,
reach agreement on lease modification terms that reflect the
long-term interests of the company, as well as our tenants,
recognizing that our tenants’ return to profitability on the back
side of the pandemic is an important part of our mutual long-term
goals. Not all requests for rent relief will result in lease
modification. We have completed 50 rent relief agreements with
tenants.
RENTAL COLLECTIONS
UPDATE (as of June 1, 2020)
- 68.7% of total April 2020 base rent, common area maintenance
charges (CAM) and real estate taxes have been paid.
- 60.3% of total May 2020 base rent, CAM and real estate taxes
have been paid.
The following are statistics about our company and balance sheet
as of April 30, 2020 that are useful in assessing the impact of
Covid-19 on our business:
- We increased our provision for uncollectable tenant accounts
receivable by $1.5 million in the quarter ended April 30, 2020
($0.04 per Class A Common share), primarily as a result of the
uncertainty regarding the on-going COVID-19 pandemic.
- We have $33.9 million of cash & cash equivalents currently
on our balance sheet.
- We converted $7.1 million in liquid marketable securities to
cash on May 22, 2020.
- We have $64 million available on our unsecured revolving credit
facility.
- We have no material debt maturing for approximately the next 21
months.
- We have reduced expectations for our Acquisitions Department
and have temporarily redirected their efforts to tenant
negotiations.
- The health and safety of the company’s employees and their
families is a top priority. Since mid-March, we seamlessly
transitioned 100% of our workforce to working on a remote basis. In
accordance with Connecticut state regulations, our office opened at
less than 50% capacity on May 20, 2020, with employees encouraged
to continue working from home when feasible.
SECOND QUARTER
2020
- $2.8 million of net income attributable to common stockholders
($0.07 per diluted Class A Common share).
- $10.3 million of Funds From Operations (FFO)(1) ($0.27 per
diluted Class A Common share).
- FFO was reduced by a $1.4 million ($0.04 per Class A Common
share) one-time increase in compensation expense as a result of the
acceleration of amortization of restricted stock grants upon the
passing of our former Chairman Emeritus, Charles J. Urstadt in
March 2020.
- FFO was reduced by an additional $1.5 million ($0.04 per Class
A share) due to the above-noted increase in the company’s provision
for uncollectable tenant accounts receivable, primarily as a result
of the COVID-19 pandemic.
- 91.9% of our consolidated portfolio was leased at April 30,
2020.
- 7.1% average increase in base rental rates on new leases over
the last four quarters.
- 2.7% average increase in base rental rates on lease renewals
over the last four quarters.
- On April 17, 2020, we paid a $0.28 per share quarterly cash
dividend on our Class A Common Stock and $0.25 per share quarterly
cash dividend paid on our Common Stock.
(1) A reconciliation of GAAP net income to FFO is provided at
the end of this press release.
Dividend
Declarations:
- The company’s Board of Directors declared the regular
contractual quarterly dividend with respect to each of the
company’s Series H and Series K cumulative redeemable preferred
stock. All dividends on the preferred stock will be paid on July
31, 2020, to shareholders of record on July 17, 2020.
- As a result of COVID-19 and the economic uncertainties
resulting from the COVID-19 pandemic, the company’s Board of
Directors reduced the dividend on its Common and Class A Common
stock to $0.07 per Class A Common share and $0.0625 per Common
share, respectively, a reduction of approximately 75% from second
quarter dividends of $0.25 per Common share and $0.28 per Class A
Common share, which will preserve $8.2 million of cash in the third
quarter. Dividends on the Common shares and Class A Common shares
will be paid on July 17, 2020 to holders of record on July 3, 2020.
The company’s Board of Directors will continue to monitor the
company’s financial performance and economic outlook and intends,
at a later date, to adjust the Class A Common and Common stock
dividends during fiscal 2020 to at least the amount required to
maintain compliance with its REIT taxable income distribution
requirements.
“Our thoughts and prayers go out to all of those impacted by the
COVID-19 pandemic, along with great appreciation and respect for
those operating every day on the front lines,” said Willing L.
Biddle, President and Chief Executive Officer. Mr. Biddle
continued….“Our company entered this pandemic in a very strong
position both from an operating and balance sheet perspective, and
we fully expect to emerge in good shape given our superior real
estate, low leverage, high percentage of grocery and pharmacy
anchored properties, financial liquidity, flexibility and dedicated
employees. The New York City suburbs, where our properties are
primarily located, was one of the hardest hit areas of the country.
We have been focused on protecting the health and well-being of our
employees, supporting our tenants and working with the communities
to which we and our properties belong. Thankfully, our long-term
strategy has resulted in 84% of our properties, measured by square
feet, being anchored by grocery stores, wholesale clubs or
pharmacies, and these businesses have remained open during this
crisis, proving how critical they are to the communities that they
serve. Commercial landlords like us are facing difficult times with
many stores forced to temporarily close, many of our tenants
struggling and limited assistance available to commercial property
owners from government sources or lenders. However, our tenant mix
and low leverage gives us the ability to work with our tenants so
that they can survive this crisis and operate in a profitable
manner when this is over.”
Net income applicable to Class A Common and Common stockholders
for the second quarter of fiscal 2020 was $2,799,000 or $0.07 per
diluted Class A Common share and $0.07 per diluted Common share,
compared to $5,798,000 or $0.15 per diluted Class A Common share
and $0.14 per diluted Common share in last year’s second quarter.
Net income attributable to Class A Common and Common stockholders
for the first six months of fiscal 2020 was $7,870,000 or $0.21 per
diluted Class A Common share and $0.18 per diluted Common share,
compared to $11,652,000 or $0.31 per diluted Class A Common share
and $0.27 per diluted Common share in the first six months of
fiscal 2019.
FFO for the second quarter of fiscal 2020 was $10,287,000 or
$0.27 per diluted Class A Common share and $0.24 per diluted Common
share, compared with $13,202,000 or $0.35 per diluted Class A
Common share and $0.31 per diluted Common share in last year’s
second quarter. For the first six months of fiscal 2020, FFO
amounted to $23,184,000 or $0.61 per diluted Class A Common share
and $0.54 per diluted Common share, compared to $26,739,000 or
$0.71 per diluted Class A Common share and $0.63 per diluted Common
share in the corresponding period of fiscal 2019.
Both net income applicable to Class A Common and Common
stockholders and FFO for the six and three months ended April 30,
2020 were reduced by $1.4 million (or $0.04 per share) relating to
the acceleration of amortization of the grant value of restricted
stock upon the death of our former Chairman Emeritus, Charles J.
Urstadt, in March of 2020. In addition, both net income applicable
to Class A Common and Common stockholders and FFO for the six and
three months ended April 30, 2020 were reduced by an uncollectable
amount of lease income in the amount of $1.8 million and $1.5
million, respectively. These amounts represented a $1.3 million
increase ($0.03 per share) in the provision for the six months and
three months ended April 30, 2020 when compared to the
corresponding prior periods, primarily as a result of additional
tenant credit losses caused by the COVID-19 pandemic.
At April 30, 2020, the company’s consolidated properties were
91.9% leased (versus 92.9% at the end of fiscal 2019) and 90.3%
occupied (versus 91.4% at the end of fiscal 2019). The company
currently has 367,000 square feet of vacancy in its consolidated
portfolio, 33,500 square feet of which is in the lease negotiation
stage. In addition, the company is negotiating letters of intent
with potential tenants on another 114,000 square feet of vacant
space. Also, as previously discussed, at April 30, 2020, the leased
percentage treats as leased, and the April 30, 2020 occupancy
percentage treats as unoccupied, 65,700 square feet of retail space
(1.4% of our consolidated square footage) formerly ground leased by
Toys R’ Us and Babies R’ Us at the company’s Danbury Square
shopping center in Danbury, CT. Toys R’ Us and Babies R’ Us went
bankrupt in fiscal 2017, and this ground lease was purchased from
Toys R’ Us and Babies R’ Us and assumed by a real estate investor
in August 2018. The lease rate for the 65,700 square foot space was
and remains at $0 for the duration of the lease, and the company
did not have any other leases with Toys R’ Us or Babies R’ Us, so
the company’s cash flow was not impacted by the bankruptcy of Toys
R’ Us and Babies R’ Us. As of the date of this press release, the
company has not been informed if the new owner of the lease has a
tenant for the space.
Both the percentage of property leased and the percentage of
property occupied referenced in the preceding paragraph exclude the
company’s unconsolidated joint ventures. At April 30, 2020, the
company had equity interests in six unconsolidated joint ventures
(719,000 square feet), which were 94.4% leased (96.1% at October
31, 2019).
Urstadt Biddle Properties Inc. is a self-administered equity
real estate investment trust which owns or has equity interests in
81 properties containing approximately 5.3 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 201 consecutive quarters
of uninterrupted dividends to its shareholders since its
inception.
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)
Six Months and Three Months
Ended April 30, 2020 and 2019 results (Unaudited)
(in thousands, except per share
data)
Six Months Ended
Three Months Ended
April 30,
April 30,
2020
2019
2020
2019
Revenues
Lease income
$63,148
$66,610
$30,203
$33,349
Lease termination income
348
17
139
-
Other income
2,132
1,745
938
756
Total Revenues
65,628
68,372
31,280
34,105
Operating Expenses
Property operating
10,730
11,835
4,801
5,905
Property taxes
11,718
11,718
5,908
5,805
Depreciation and amortization
14,283
13,925
7,148
6,985
General and administrative
6,384
4,919
3,607
2,265
Directors' fees and expenses
193
192
88
84
Total Operating Expenses
43,308
42,589
21,552
21,044
Operating Income
22,320
25,783
9,728
13,061
Non-Operating Income (Expense):
Interest expense
(6,648)
(7,110)
(3,309)
(3,532)
Equity in net income from unconsolidated
joint ventures
976
718
463
376
Unrealized holding gains arising during
the period
109
-
109
-
Gain on sale of marketable securities
-
403
-
-
Gain (loss) on sale of properties
(328)
-
11
-
Interest, dividends and other investment
income
332
184
238
55
Net Income
16,761
19,978
7,240
9,960
Noncontrolling interests:
Net income attributable to noncontrolling
interests
(2,066)
(2,201)
(1,028)
(1,100)
Net income attributable to Urstadt Biddle
Properties Inc.
14,695
17,777
6,212
8,860
Preferred stock dividends
(6,825)
(6,125)
(3,413)
(3,062)
Net Income Applicable to Common and
Class A Common Stockholders
$7,870
$11,652
$2,799
$5,798
Diluted Earnings Per Share:
Per Common Share:
$0.18
$0.27
$0.07
$0.14
Per Class A Common Share:
$0.21
$0.31
$0.07
$0.15
Weighted Average Number of Shares
Outstanding (Diluted):
Common and Common Equivalent
9,534
9,271
9,447
9,342
Class A Common and Class A Common
Equivalent
29,643
29,604
29,631
29,649
Results of Operations
The following information summarizes our results of operations
for the six months and three months ended April 30, 2020 and 2019
(amounts in thousands):
Six months ended
April 30,
Change Attributable to
Revenues
2020
2019
Increase (Decrease)
% Change
Property Acquisitions/Sales
Properties Held In Both Periods
(Note 1)
Base rents
$50,883
$50,281
$602
1.2%
$(102)
$704
Recoveries from tenants
14,110
16,825
(2,715)
-16.1%
(37)
(2,678)
Uncollectible amounts in lease income
(1,845)
(496)
(1,349)
272.0%
n/a
n/a
Lease termination
348
17
331
1,947.1%
-
331
Other income
2,132
1,745
387
22.2%
(6)
393
Operating Expenses
Property operating
10,730
11,835
(1,105)
-9.3%
(85)
(1,020)
Property taxes
11,718
11,718
-
0.0%
(5)
5
Depreciation and amortization
14,283
13,925
358
2.6%
(46)
404
General and administrative
6,384
4,919
1,465
29.8%
n/a
n/a
Non-Operating Income/Expense
Interest expense
6,648
7,110
(462)
-6.5%
232
(694)
Interest, dividends, and other investment
income
332
184
148
80.4%
n/a
n/a
Three Months Ended
April 30,
Change Attributable to
Revenues
2020
2019
Increase (Decrease)
% Change
Property Acquisitions/Sales
Properties Held In Both Periods
(Note 1)
Base rents
$25,591
$25,218
$373
1.5%
$(158)
$531
Recoveries from tenants
6,115
8,373
(2,258)
-27.0%
(76)
(2,182)
Uncollectible amounts in lease income
(1,503)
(242)
(1,261)
521.1%
n/a
n/a
Lease termination
139
-
139
100.0%
-
139
Other income
938
756
182
24.1%
(7)
189
Operating Expenses
Property operating
4,801
5,905
(1,104)
-18.7%
(123)
(981)
Property taxes
5,908
5,805
103
1.8%
(39)
142
Depreciation and amortization
7,148
6,985
163
2.3%
(51)
214
General and administrative
3,607
2,265
1,342
59.2%
n/a
n/a
Non-Operating Income/Expense
Interest expense
3,309
3,532
(223)
-6.3%
112
(335)
Interest, dividends, and other investment
income
238
55
183
332.7%
n/a
n/a
Note 1 – Properties held in both periods includes only
properties owned for the entire periods of 2020 and 2019 and for
interest expense the amount also includes parent company interest
expense. All other properties are included in the property
acquisition/sales column. There are no properties excluded from the
analysis.
Base rents increased by 1.2% to $50.9 million for the six month
period ended April 30, 2020 as compared with $50.3 million in the
comparable period of 2019. Base rents increased by 1.5% to $25.6
million for the three month period ended April 30, 2020 as compared
with $25.2 million in the comparable period of 2019. The change in
base rent and the changes in other income statement line items
analyzed in the table above were attributable to:
Property Acquisitions and Properties
Sold:
In the first six months of fiscal 2019, we purchased one
property totaling 177,000 square feet, and sold one property
totaling 10,100 square feet. In the first six months of fiscal
2020, we sold two properties totaling 18,100 square feet. These
properties accounted for all of the revenue and expense changes
attributable to property acquisitions and sales in the six months
ended April 30, 2020 when compared with fiscal 2019.
Properties Held in Both
Periods:
Revenues
Base Rent
The net increase in base rents for the six month and three month
periods ended April 30, 2020, when compared to the corresponding
prior periods, was predominantly caused by an increase in base
rents at most properties related to normal base rent increases
provided for in our leases, new leasing at some properties and base
rent revenue related to two new grocery store leases for which
rental recognition began in the first six months of fiscal 2020.
The new grocer tenants are Whole Foods at our Valley Ridge shopping
center in Wayne, NJ and DeCicco's at our Eastchester, NY property.
This increase was offset by a decrease in base rent revenue at six
properties related to tenant vacancies. The most significant of
these vacancies were the vacating of TJ Maxx at our New Milford, CT
property and a tenant at our Danbury, CT property after the first
half of fiscal 2019.
In the first six months of fiscal 2019, we leased or renewed
approximately 257,000 square feet (or approximately 5.6% of total
consolidated property leasable area). At April 30, 2020, the
Company’s consolidated properties were 91.9% leased (92.9% leased
at October 31, 2019).
Tenant Recoveries
In the six month and three month periods ended April 30, 2020,
recoveries from tenants (which represent reimbursements from
tenants for operating expenses and property taxes) decreased by a
net $2.7 million and $2.3 million, respectively, when compared with
the corresponding prior periods. This decrease was predominantly
the result of a negative variance relating to reconciliation of the
accruals for real estate tax recoveries billed to tenants in the
first half of fiscal 2019 and 2020. The decrease was further
attributable to accruing a lower percentage of recovery at most of
our properties as a result of our assessment that many of our
smaller local tenants will have difficulty paying the full amounts
required under their leases as a result of the COVID 19 pandemic.
This assessment was based on the fact that many smaller tenants'
businesses were deemed non-essential by the states where they
operate and were forced to close. In addition, this decrease was
accentuated by a large real estate tax reduction at one of our
properties pursuant to a successful tax reduction proceeding, which
reduces the amount to be billed back to tenants at that property.
These net decreases were offset by increased tax assessments at our
other properties held in both periods, which increases the amount
of tax due and the amount billed back to tenants for those
billings.
Uncollectable Amounts in Lease
Income
In the six month and three month periods ended April 30, 2020,
uncollectable amounts in lease income increased by $1.3 million.
This increase was the result of an increase in our assessment of
the collectability of existing non-credit small shop tenants'
receivables given the on-going COVID-19 pandemic. Many non-credit
small shop tenants' businesses were deemed non-essential by the
states where they operate and were forced to close. Our assessment
was based on the premise that as we emerge from the COVID-19
pandemic, our non-credit small shop tenants will need to use most
of their resources to re-establish their business footing and any
existing accounts receivable attributable to these tenants would
most likely be uncollectable.
Expenses
Property Operating
In the six month and three month periods ended April 30, 2020,
property operating expenses decreased by $1.0 million and $981,000,
respectively as a result of a large decrease in snow removal costs
and parking lot repairs in the first half of fiscal 2020 when
compared with the first half of fiscal 2019.
Property Taxes
In the six month and three month periods ended April 30, 2020,
property tax expense was relatively unchanged when compared with
the corresponding prior periods. In the first half of fiscal 2020,
one of our properties received a large real estate tax expense
reduction as a result of a successful tax reduction proceeding.
This decrease was offset by increased tax assessments at our other
properties held in both periods, which increases the amount of tax
due.
Interest
In the six month and three month periods ended April 30, 2020,
interest expense decreased by $694,000 and $335,000, respectively,
when compared with the corresponding prior periods, as a result of
a reduction in interest expense related to our unsecured revolving
credit facility. In October 2019, we used a portion of the proceeds
from a new series of preferred stock to repay all amounts
outstanding on our Facility.
Depreciation and Amortization
In the six month and three month periods ended April 30, 2020,
depreciation and amortization increased by $404,000 and $214,000,
respectively, when compared with the prior periods primarily, as a
result of a write off of tenant improvements related to a tenant
that vacated our Danbury, CT property in the first quarter of
fiscal 2020.
General and Administrative
Expenses
In the six month and three month periods ended April 30, 2020,
general and administrative expenses increased by $1.5 million and
$1.3 million, respectively, when compared with the corresponding
prior periods, as a result of an increase of $1.4 million in
restricted stock compensation expense in the second quarter of
fiscal 2020 for the accelerated vesting of the grant value of
restricted stock for our former Chairman Emeritus when he passed
away in the second quarter of fiscal 2020. The increase in the six
month period ended April 30, 2020 was further accentuated by an
increase of $353,000 in compensation and benefits expense
predominantly related to an increase in cash bonuses paid in the
first quarter of fiscal 2020 and an increase in employee medical
insurance costs when compared with the corresponding prior
periods.
Non-GAAP Financial Measure
Funds from Operations (“FFO”)
We consider FFO to be an additional measure of our operating
performance. We report FFO in addition to net income applicable to
common stockholders and net cash provided by operating activities.
Management has adopted the definition suggested by The National
Association of Real Estate Investment Trusts (“NAREIT”) and defines
FFO to mean net income (computed in accordance with GAAP) excluding
gains or losses from sales of property, plus real estate-related
depreciation and amortization and after adjustments for
unconsolidated joint ventures.
Management considers FFO a meaningful, additional measure of
operating performance because it primarily excludes the assumption
that the value of the company’s 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. It is helpful as it
excludes various items included in net income that are not
indicative of our operating performance, such as gains (or losses)
from sales of property and depreciation and amortization. However,
FFO:
- does not represent cash flows from operating activities in
accordance with GAAP (which, unlike FFO, generally reflects all
cash effects of transactions and other events in the determination
of net income); and
- should not be considered an alternative to net income as an
indication of our performance.
FFO as defined by us may not be comparable to similarly titled
items reported by other real estate investment trusts due to
possible differences in the application of the NAREIT definition
used by such REITs. The table below provides a reconciliation of
net income applicable to Common and Class A Common stockholders in
accordance with GAAP to FFO for the six month and three month
periods ended April 30, 2020 and 2019 (amounts in thousands):
(Table Follows)
Urstadt Biddle Properties Inc.
(NYSE: UBA and UBP)
Six Months and Three Months
Ended April 30, 2020 and 2019
(in thousands, except per share
data)
Reconciliation of Net Income
Available to Common and Class A Common Stockholders To Funds From
Operations:
Six Months Ended
Three Months Ended
April 30,
April 30,
2020
2019
2020
2019
Net Income Applicable to Common and Class
A Common Stockholders
$7,870
$11,652
$2,799
$5,798
Real property depreciation
11,336
11,333
5,665
5,669
Amortization of tenant improvements and
allowances
2,075
1,732
1,039
849
Amortization of deferred leasing costs
828
812
421
419
Depreciation and amortization on
unconsolidated joint ventures
747
753
374
373
Loss on sale of property
328
-
(11)
-
Loss on sale of property in unconsolidated
joint venture
-
457
-
94
Funds from Operations Applicable to Common
and Class A Common Stockholders
$23,184
$26,739
$10,287
$13,202
Funds from Operations (Diluted) Per
Share:
Common
$0.54
$0.63
$0.24
$0.31
Class A Common
$0.61
$0.71
$0.27
$0.35
Weighted Average Number of Shares
Outstanding (Diluted):
Common and Common Equivalent
9,534
9,271
9,447
9,342
Class A Common and Class A Common
Equivalent
29,643
29,604
29,631
29,649
Non-GAAP Financial Measure
Same Property Net Operating Income
We present Same Property Net Operating Income ("Same Property
NOI"), which is a non-GAAP financial measure. Same Property NOI
excludes from Net Operating Income (“NOI”) properties that have not
been owned for the full periods presented. The most directly
comparable GAAP financial measure to NOI is operating income. To
calculate NOI, operating income is adjusted to add back
depreciation and amortization, general and administrative expense,
interest expense, amortization of above and below-market lease
intangibles and to exclude straight-line rent adjustments,
interest, dividends and other investment income, equity in net
income of unconsolidated joint ventures, and gain/loss on sale of
operating properties.
We use Same Property NOI internally as a performance measure and
believe Same Property NOI provides useful information to investors
regarding our financial condition and results of operations because
it reflects only those income and expense items that are incurred
at the property level. Our management also uses Same Property NOI
to evaluate property level performance and to make decisions about
resource allocations. Further, we believe Same Property NOI is
useful to investors as a performance measure because, when compared
across periods, Same Property NOI reflects the impact on operations
from trends in occupancy rates, rental rates and operating costs on
an unleveraged basis, providing perspective not immediately
apparent from income from continuing operations. Same Property NOI
excludes certain components from net income attributable to Urstadt
Biddle Properties Inc. in order to provide results that are more
closely related to a property’s results of operations. For example,
interest expense is not necessarily linked to the operating
performance of a real estate asset and is often incurred at the
corporate level as opposed to the property level. In addition,
depreciation and amortization, because of historical cost
accounting and useful life estimates, may distort operating
performance at the property level. Same Property NOI presented by
us may not be comparable to Same Property NOI reported by other
REITs that define Same Property NOI differently.
Table Follows:
Urstadt Biddle Properties Inc.
Same Property Net Operating
Income
(In thousands, except for number of
properties and percentages)
Six Months Ended April 30,
Three Months Ended April 30,
2020
2019
% Change
2020
2019
% Change
Same Property Operating Results:
Number of Properties (Note 3)
74
74
Revenue (Note 2)
Base Rent
$48,495
$47,863
1.3%
$24,205
$24,024
0.8%
Recoveries from tenants
13,621
16,291
-16.4%
5,903
8,078
-26.9%
Other property income
193
349
-44.7%
74
186
-60.2%
62,309
64,503
-3.4%
30,182
32,288
-6.5%
Expenses
Property operating
5,962
7,116
-16.2%
2,843
3,739
-24.0%
Property taxes
11,301
11,377
-0.7%
5,705
5,565
2.5%
Other non-recoverable operating
expenses
806
862
-6.5%
396
414
-4.3%
18,069
19,355
-6.6%
8,944
9,718
-8.0%
Same Property Net Operating Income
$44,240
$45,148
-2.0%
$21,238
$22,570
-5.9%
Reconciliation of Same Property NOI to
Most Directly Comparable GAAP Measure:
Other reconciling
items:
Other non same-property net operating
income
869
910
425
495
Other Interest income
248
177
106
100
Other Dividend Income
182
97
182
-
Consolidated lease termination income
348
16
139
-
Consolidated amortization of above and
below market leases
350
291
172
156
Consolidated straight line rent income
550
600
488
164
Equity in net income of unconsolidated
joint ventures
-
-
(513)
(342)
Taxable REIT subsidiary income/(loss)
326
125
195
(47)
Solar income/(loss)
(191)
(175)
(79)
(58)
Storage income/(loss)
474
452
238
233
Unrealized holding gains arising during
the periods
109
-
109
-
Gain on sale of marketable securities
-
403
-
-
Interest expense
(6,648)
(7,110)
(3,309)
(3,532)
General and administrative expenses
(6,384)
(4,919)
(3,607)
(2,265)
Uncollectable amounts in lease income
(1,845)
(496)
(1,502)
(242)
Directors fees and expenses
(193)
(192)
(88)
(84)
Depreciation and amortization
(14,283)
(13,925)
(7,148)
(6,985)
Adjustment for intercompany expenses and
other
(1,063)
(1,424)
183
(203)
Total other -net
(27,151)
(25,170)
(14,009)
(12,610)
Income from continuing operations
17,089
19,978
-14.5%
7,229
9,960
-27.4%
Gain (loss) on sale of real estate
(328)
-
11
-
Net income
16,761
19,978
-16.1%
7,240
9,960
-27.3%
Net income attributable to noncontrolling
interests
(2,066)
(2,201)
(1,028)
(1,100)
Net income attributable to Urstadt Biddle
Properties Inc.
$14,695
$17,777
-17.3%
$6,212
$8,860
-29.9%
Same Property Operating Expense Ratio
(Note 1)
78.9%
88.1%
-9.2%
69.1%
86.8%
-17.7%
Note 1 - Represents the percentage of property operating expense
and real estate tax
Note 2 - Excludes straight line rent, above/below market lease
rent, lease termination income, and bad debt expense.
Note 3 - Includes only properties owned for the entire period of
both periods presented
Urstadt Biddle Properties
Inc.
Balance Sheet
Highlights
(in thousands)
April 30,
October 31,
2020
2019
(Unaudited)
Assets
Cash and Cash Equivalents
$33,868
$94,079
Marketable Securities
$7,092
$-
Real Estate investments before
accumulated depreciation
$1,149,653
$1,141,770
Investments in and advances to
unconsolidated joint ventures
$28,254
$29,374
Total Assets
$1,018,897
$1,072,304
Liabilities
Revolving credit line
$35,000
$-
Mortgage notes payable and other
loans
$303,253
$306,606
Total Liabilities
$381,851
$414,704
Redeemable Noncontrolling
Interests
$66,257
$77,876
Preferred Stock
$225,000
$225,000
Total Stockholders’ Equity
$570,789
$579,724
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200608005685/en/
Willing L. Biddle, CEO or John T. Hayes, CFO Urstadt Biddle
Properties Inc. (203) 863-8200
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