New Plan Excel Realty Trust Reports Fourth Quarter and Year-End
2003 Results - FFO Per Diluted Share In-Line With Expectations
Before New Accounting Adjustments - NEW YORK, Feb. 26
/PRNewswire-FirstCall/ -- New Plan Excel Realty Trust, Inc. today
announced financial results for the three and twelve months ended
December 31, 2003. Funds from operations (FFO) for the twelve
months ended December 31, 2003, excluding the adjustments required
by the new FFO methodology discussed below, was $1.96 per diluted
share, at the high-end of the Company's previously announced range
of FFO guidance of $1.90 to $1.96 per diluted share. Total rental
revenues for the fourth quarter of 2003 increased to $120.0 million
from $104.0 million in the fourth quarter of 2002. Net income
available to common stockholders was $24.7 million, or $0.24 per
diluted share, in the fourth quarter of 2003 compared with $34.9
million, or $0.35 per diluted share, in the fourth quarter of 2002.
FFO for the fourth quarter of 2003was $44.6 million, or $0.44 on a
diluted per share basis (which included a downward adjustment of
$0.03 per diluted share to reflect the newly required FFO
methodology, as described below), compared with $(44.7) million, or
$(0.45) on a diluted per share basis, in the fourth quarter of 2002
(as restated downward by $0.92 per diluted share to reflect the
newly required FFO methodology). A reconciliation of net income to
FFO is presented in the attached table. Total rental revenues for
the year endedDecember 31, 2003 were $479.9 million as compared
with $388.1 million for the year ended December 31, 2002. Net
income available to common stockholders was $108.8 million, or
$1.08 per diluted share, in 2003 (which included a reduction to net
income available to common stockholders of approximately $630,000,
or $0.01 per diluted share, attributable to the premium on the
Company's redemption of its Series B Preferred Stock) compared with
$108.7 million, or $1.13 per diluted share, in 2002 (which included
an addition to net income available to common stockholders of
approximately $7.0 million, or $0.07 per diluted share,
attributable to the discount on the Company's redemption of its
Series A Preferred Stock). FFO for 2003 was $185.7 million, or
$1.85 on a diluted per share basis (which included a downward
adjustment of $0.11 per diluted share to reflect the newly required
FFO methodology), compared with $82.8 million, or $0.85 on a
diluted per share basis, for 2002 (as restated downward by $1.03
per diluted share to reflect the newly required FFO methodology).
On October 1, 2003, the National Association of Real Estate
Investment Trusts (NAREIT), based on discussions with the SEC,
provided revised guidance regarding the calculation of FFO. This
revised guidance provides that impairments should not be added back
to net income in calculating FFO and that original issuance costs
associated with preferred stock that has been redeemed should be
factored into the calculation of FFO. The Company historically has
added back impairments in calculating FFO, in accordance with prior
NAREIT guidance, and has not factored in original issuance costs of
preferred stock that has been redeemed in the calculation of FFO.
The Company has restated its historical calculation of FFO in
accordance with NAREIT's revised guidance and its application to
the Company's financial performance is as stated above. Property
Portfolio At the end of the fourth quarter, the gross leasable area
(GLA) for the Company's stabilized community and neighborhood
shopping centers, including stabilized joint venture projects, was
approximately 92 percent leased. The GLA for the Company's total
stabilized portfolio, excluding joint venture projects, was
approximately 91 percent leased at December 31, 2003, and when
including properties under redevelopment, the GLA for the Company's
total portfolio, excluding joint venture projects (Company Total
Portfolio), was approximately 90 percent leased at December 31,
2003. The average annual base rent (ABR) at December 31, 2003 for
the Company's Total Portfolio was $7.87 per leased square foot.
During the quarter, 154 new leases, aggregating approximately
967,000 square feet, were signed at an average ABR of $8.01 per
square foot. Also during the quarter, 181 renewal leases,
aggregating approximately 838,000 square feet, were signed at an
average ABR of $9.93 per square foot, an increase of approximately
8.2 percent over the expiring leases. In total, 613 new leases,
aggregating approximately 3.3 million square feet, were signed
during 2003 at an average ABR of $8.20 per square foot and 844
renewal leases, aggregating approximately 3.5 million square feet,
were signed at an average ABR of $9.29 per square foot, an
increaseof approximately 7.0 percent over the expiring leases.
Acquisitions and Dispositions On October 10, 2003, CA New Plan
Venture Fund, the Company's joint venture with a major U.S. pension
fund, acquired Shoppes of Victoria Square. The 95,253 square foot
grocery-anchored neighborhood shopping center, located in Port St.
Lucie, Florida, was purchased for $8.3 million, with 75 percent
financing. On October 31, 2003, CA New Plan Venture Fund also
acquired Clinton Crossing, a 26,200 square foot neighborhood
shopping center (net of space subsequently demolished), for $6.0
million. The property, located in Clinton, Mississippi, is
currently under redevelopment with the construction of space for a
new anchor tenant and will total 101,073 square feet when complete.
On November 24, 2003, the Company formed a strategic joint venture
with JPMorgan Fleming Asset Management to acquire high-quality
institutional grade community and neighborhood shopping centers on
a nationwide basis. The joint venture, which is called NP/I&G
Institutional Retail Company, LLC, has an equity commitment of $150
million based on a 20 percent / 80 percent contribution split
between the Company and a fund advised by JPMorgan Fleming Asset
Management, respectively. As the managing member, the Company will
be responsible for initiating acquisitions, as well as providing
management and leasing services. On November 25, 2003, the joint
venture acquired Lake Grove Plaza, a 251,236 square foot
grocery-anchored community shopping center located in Lake Grove,
New York, for $44.0 million. During 2003, the Company acquired,
including through co-investments with its joint venture partners,
15 shopping centers, totaling approximately 2.0 million square
feet, for an aggregate of approximately $185.1 million (includes
one shopping center, Paradise Pavilion, for which the purchase
amount was included in the Equity Investment Group portfolio
acquisition on December 12, 2002). On January 30, 2004, the Company
purchased the remaining 50 percent interest in Clearwater Mall,
increasing New Plan's ownership interest to 100 percent. The
purchase price for the acquisition was approximately $30 million.
Clearwater Mall, located in Clearwater, Florida, is a community
shopping center encompassing a 72-acre site with 284,184 square
feet of leased space, as well as non-owned Costco, Lowe's and
SuperTarget anchors. During the fourth quarter of 2003, the Company
sold six properties, one land parcel and one outparcel for an
aggregate of approximately $15.2 million. Properties sold during
the quarter include Village Mart, a 89,528 square foot shopping
center located in Aurora, Illinois; Lamar Plaza, a 154,855 square
foot shopping center located in Rosenberg, Texas; Meadowbrook, a
40,308 square foot shopping center located in Ft. Worth, Texas; a
5,671 square foot single tenant Northern Automotive located in
Grand Island, Nebraska; a 29,300 square foot single tenant building
located in Hobart, Indiana; a 43,848 square foot single tenant
Winn-Dixie located in Chattanooga, Tennessee; 2.2 acres of land at
Highland Commons in Glasgow, Kentucky; and a 1.2 acre outparcel at
Vail Ranch Center in Temecula, California. In 2003, the Company
generated an aggregate of approximately $121.7 million of proceeds
through the culling of non-core and non-strategic properties, the
sale of 70 percent of its interest in Arapahoe Crossings, and the
disposition of certain properties held through joint ventures.
Balance Sheet Position The Company completed the 2003 fiscal year
with total book assets of approximately $3.6 billion and a total
debt / undepreciated book value ratio of 45.4 percent. The
Company's debt for the three months ended December 31, 2003 had an
overall average current interest rate of6.2 percent and a weighted
average maturity of 6.1 years. Approximately 83 percent of the
Company's total debt is fixed rate debt. On November 20, 2003, the
Company issued $50 million aggregate principal amount of unsecured,
10-year fixed rate notes with a coupon of 5.50 percent. The notes
are due on November 20, 2013. The notes were priced at 99.499
percent of par value to yield 5.566 percent. Net proceeds from the
offering were used to repay $49 million of 7.33 percent notes
scheduled to matureon November 20, 2003. On May 8, 2003, the
Company entered into a 10-year forward starting interest rate swap
in anticipation of this offering, locking the LIBOR swap rate at
4.1135 percent. This swap settled upon the completion of this
transaction. As a result, the effective interest rate on the $50
million of unsecured, fixed rate notes is approximately 5.0
percent. On February 6, 2004, the Company issued $150 million
aggregate principal amount of unsecured, 7-year fixed rate notes
with a couponof 4.50 percent. The notes are due on February 1,
2011. The notes were priced at 99.409 percent of par value to yield
4.60 percent. Net proceeds from the offering were used to repay a
portion of the borrowings outstanding under the Company's $350
million revolving credit facility. Concurrent with the pricing of
the offering, the Company entered into interest rate swaps that
effectively converted the interest rate on $100 million of the
notes from a fixed rate to a blended floating rate of 39
basispoints over the 6-month LIBOR rate. Dividend For the first
quarter of 2004, the Company's Board of Directors declared a cash
dividend of $0.4125 per common share. On an annualized basis, this
is the equivalent of $1.65 per share. The dividend is payable on
April 15, 2004 to common stockholders of record on April 1, 2004.
New Plan Excel Realty Trust, Inc. shares go ex-dividend on March
30, 2004. The Board of Directors also declared a dividend of $0.975
per depositary share on its 7.8 percent Series D Cumulative Voting
Step-Up Premium Rate Preferred Stock to stockholders of record on
April 1, 2004, payable on April 15, 2004. In addition, the Board of
Directors declared a dividend of $0.47656 per depositary share on
its 7.625 percent Series E Cumulative Redeemable Preferred Stock to
stockholders of record on April 1, 2004, payable on April 15, 2004.
Management Comment "Following two years of extensive repositioning,
we are pleased to conclude 2003 by meeting or exceeding our
financial and operating goals and expectations. FFO was at the
high-end of our range of guidance, leasing exceeded our targets and
capital markets activity reduced balance sheet costs, while
increasing our return on investment. We look forward to 2004,"
commented Glenn J. Rufrano, Chief Executive Officer. Conference
Call The Company will be hosting a teleconference on Thursday,
February 26, 2004 at 2:00 PM ET. The teleconference can be accessed
by dialing 1-800-884-5695 (International: 1-617-786-2960) or via
the web at http://www.newplan.com/ under Investor Information;
Audio Archives. Please refer to passcode #13203315. A replay of the
teleconference will be available through midnight ET March 4, 2004
by dialing 1-888-286-8010 (International: 1-617-801-6888) or via
the web at http://www.newplan.com/ under Investor Information;
Audio Archives. Please refer to passcode #22819551. The Company's
Supplemental Disclosure package will be furnished today on a
Current Report on Form 8-K and will also be available on the
Company's website at http://www.newplan.com/ under Investor
Information; Financial Reports. These materials are also available
in e-mail or hard copy formats by contacting New Plan Corporate
Communications at or 1-800-468-7526. New Plan ExcelRealty Trust,
Inc. is one of the nation's largest real estate companies, focusing
on the ownership and management of community and neighborhood
shopping centers. The Company operates as a self-administered and
self-managed REIT, with a national portfolio of 401 properties,
including 22 properties held through joint ventures, and total
assets of approximately $3.6 billion. Its properties are
strategically located across 35 states and include 374 community
and neighborhood shopping centers, primarilygrocery or name-brand
discount chain anchored, with approximately 53.5 million square
feet of gross leasable area, and 27 related retail real estate
assets, with approximately 2.2 million square feet of gross
leasable area. For additional information,please visit
http://www.newplan.com/. Certain statements in this release that
are not historical fact may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statementsinvolve known and unknown
risks, uncertainties and other factors which may cause the actual
results of the Company to differ materially from historical results
or from any results expressed or implied by such forward-looking
statements, including without limitation: national and local
economic, business, real estate and other market conditions; the
competitive environment in which the Company operates; financing
risks; property management risks; the level and volatility of
interest rates; financial stability of tenants; the Company's
ability to maintain its status as a REIT for federal income tax
purposes; acquisition, disposition, development and joint venture
risks, including risks that developments and redevelopments are not
completed on time oron budget and strategies, actions and
performance of affiliates that the Company may not control;
potential environmental and other liabilities; and other factors
affecting the real estate industry generally. The Company refers
you to the documents filed by the Company from time to time with
the Securities and Exchange Commission, specifically the section
titled "Business- Risk Factors" in the Company's Annual Report on
Form 10-K for the year ended December 31, 2003, which discuss these
and other factors that could adversely affect the Company's
results. NEW PLAN EXCEL REALTY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share
amounts) Three Months Ended Twelve Months Ended December 31,
December 31, December 31, December 31, 2003 2002 2003 2002 Rental
Revenues: Rental income $ 92,232 $ 79,178 $ 371,320 $ 299,223
Percentage rents 2,262 1,626 7,340 6,688 Expense reimbursements
25,478 23,201 101,222 82,141 TOTAL RENTAL REVENUES 119,972 104,005
479,882 388,052 Rental Operating Expenses: Operating costs 23,981
19,868 91,644 67,464 Real estate and other taxes 15,234 12,990
60,132 46,463 Provision for doubtful accounts 2,648 2,146 8,309
8,955 TOTAL RENTAL OPERATING EXPENSES 41,863 35,004 160,085 122,882
NET OPERATING INCOME 78,109 69,001 319,797 265,170 Other Income:
Interest, dividend and other income 2,016 2,074 9,419 11,014 Equity
in income of unconsolidated ventures 1,006 1,511 3,439 5,244
Foreign currency loss - - - (13) TOTAL OTHER INCOME 3,022 3,585
12,858 16,245 Other Expenses: Interest expense 25,015 24,889
101,632 93,260 Depreciation and amortization 19,874 17,164 77,372
64,948 General and administrative 5,088 4,567 19,815 17,879 TOTAL
OTHER EXPENSES 49,977 46,620 198,819 176,087 Income before real
estate sales, impairment of real estate and minority interest
31,154 25,966 133,836 105,328 Gain on sale of real estate - - - 202
Impairment of real estate - (90,253) (4,376) (94,046) Minority
interest in income of consolidated partnership (385) (224) (1,555)
(642) INCOME FROM CONTINUING OPERATIONS 30,769 (64,511) 127,905
10,842 Discontinued Operations: Results of discontinued operations
620 5,450 3,210 23,899 Gain on sale of discontinued operations 615
99,330 4,018 100,837 Impairment of real estate held for sale
(2,411) (747) (6,112) (13,516) INCOME FROM DISCONTINUED OPERATIONS
(1,176) 104,033 1,116 111,220 NET INCOME $ 29,593 $ 39,522 $
129,021 $122,062 Preferred dividends (5,279) (4,859) (21,170)
(21,023) (Premium) discount on redemption of preferred stock - -
(630) 6,997 NET INCOME AVAILABLE TO COMMON STOCKHOLDERS - BASIC
24,314 34,663 107,221 108,036 Minority interest in income of
consolidated partnership 385 224 1,555 642 NET INCOME AVAILABLE TO
COMMON STOCKHOLDERS - DILUTED $ 24,699 $34,887 $ 108,776 $ 108,678
Net income per common share - basic $ 0.25 $ 0.36 $ 1.10 $ 1.14 Net
income per common share - diluted 0.24 0.35 1.08 1.13 Funds from
operations: (1) Net income available to common stockholders -
diluted $ 24,699 $ 34,887 $ 108,776 $ 108,678 Deduct: Minority
interest in income of consolidated partnership (385) (224) (1,555)
(642) Net income available to common stockholders - basic 24,314
34,663 107,221 108,036 Add: Depreciation and amortization:
Continuing operations real estate assets 19,874 17,164 77,372
64,948 Discontinued operations real estate assets 89 324 740 5,275
Pro rata share of joint venture real estateassets 300 428 1,016
1,405 Deduct: Gain on sale of real estate (2) - - - (202) Gain on
sale of discontinued operations (2) (405) (97,538) (1,534) (98,876)
Pro rata share of joint venture gain on sale of real estate (2) - -
(643) - FUNDS FROM OPERATIONS - Basic 44,172 (44,959) 184,172
80,586 Add: Preferred A dividends (3) - - - 1,587 NEW PLAN EXCEL
REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
INCOME (In thousands, except per share amounts) Three Months Ended
Twelve Months Ended December 31, December 31, December 31, December
31, 2003 2002 2003 2002 Minority interest in income of consolidated
partnership 385 224 1,555 642 FUNDS FROM OPERATIONS - DILUTED $
44,557 $(44,735) $185,727 $82,815 Funds from operations per share -
basic$ 0.45 $ (0.46) $ 1.89 $ 0.85 Funds from operations per share
- diluted 0.44 (0.45) 1.85 0.85 Funds from operations - diluted $
44,557 $ (44,735) $ 185,727 $ 82,815 Add: Impairment of real estate
- 90,253 4,376 94,046 Impairment of real estate held for sale 2,411
747 6,112 13,516 Premium (discount) on redemption of preferred
stock - - 630 (6,997) FUNDS FROM OPERATIONS - DILUTED (prior
calculation) $ 46,968 $ 46,265 $ 196,845 $ 183,380 Funds from
operations per share - diluted (prior calculation) $ 0.47 $ 0.47 $
1.96 $ 1.88 Weighted average common shares outstanding - basic
97,758 96,900 97,318 95,119 ERP partnership units 2,178 1,081 2,178
897 Options 1,044 442 773 536 Weighted average common shares
outstanding - diluted (Net income calculation) 100,980 98,423
100,269 96,552 Dilutive effect of convertible Preferred A (3) - - -
937 Weighted average common shares outstanding - diluted (FFO
calculation) 100,980 98,423 100,269 97,489 (1) Funds fromOperations
("FFO") is a widely used performance measure for real estate
companies and is provided here as a supplemental measure of
operating performance. The Company calculates FFO in accordance
with the best practices described in the April 2002 National Policy
Bulletin of the National Association of Real Estate Investment
Trusts (the "White Paper"). The White Paper defines FFO as net
income (computed in accordance with generally accepted accounting
principles ("GAAP")), excluding gains (or losses) from sales of
property, plus depreciation and amortization, and after adjustments
for unconsolidated partnerships and joint ventures. On October 1,
2003, NAREIT, based on discussions with the SEC, provided revised
guidance regarding the calculation of FFO. This revised guidance
provides that impairments should not be added back to net income in
calculating FFO and that original issuance costs associated with
preferred stock that has been redeemed should be factored into the
calculation of FFO. The Company historically has added back
impairments in calculating FFO, in accordance with prior NAREIT
guidance, and has not factored in original issuance costs of
preferred stock that has been redeemed in the calculation of FFO.
The Company has revised its calculation of FFO in accordance with
NAREIT's revised guidance. To assist investors in understanding the
impact of thesechanges, the Company also is presenting FFO in
accordance with the methodology historically used by the Company
("prior calculation"). Given the nature of the Company's business
as a real estate owner and operator, the Company believes that FFO
is helpful to investors as a starting point in measuring its
operational performance because it excludes various items included
in net income that do not relate to or are not indicative of its
operating performance such as gains (or losses) from sales of
property and depreciation and amortization, which can make periodic
and peer analyses of operating performance more difficult to
compare. The Company also believes that the presentation of FFO
consistent with the guidance that was in effect until October 1,
2003 is further helpful to investors because it assists investors
in evaluating the Company's historical operational performance and
because it excludes other items included in the revised calculation
of FFO such as impairments which also do not relate to and are not
indicative of the Company's operating performance. FFO should not,
however, be considered as an alternative to net income (determined
in accordance with GAAP) as an indicator of the Company's financial
performance, is not an alternative to cash flow from operating
activities (determined in accordance with GAAP) as a measure of the
Company's liquidity, and is not indicative of funds available to
fund the Company's cash needs, including its ability to make
distributions. In addition, the Company's computation of FFO may
differ in certain respects from the methodology utilized by other
REITs to calculate FFO. (2) Excludes gain / loss on sale of land.
(3) On July 15, 2002, the Company redeemed all Preferred A shares
outstanding, resulting in the issuance of approximately 1.9 million
shares of common stock at an equivalent price of $20.10 per share.
The above does not purport to disclose all items required under
GAAP. The Company's Form 10-K for the year ended December 31, 2003
should be read in conjunction with the above information.
DATASOURCE: New Plan Excel Realty Trust, Inc. CONTACT: Stacy
Lipschitz, Vice President - Corporate Communications, New Plan
Excel Realty Trust, Inc., +1-212-869-3000, ext. 3359 Web site:
http://www.newplan.com/
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