New Plan Excel Realty Trust Reports First Quarter 2004 Results NEW
YORK, May 6 /PRNewswire-FirstCall/ -- New Plan Excel Realty Trust,
Inc. today announced financial results for the three months ended
March 31, 2004. Total rental revenues for the first quarter of 2004
increased to $123.9 million from $118.6 million in the first
quarter of 2003. Net income available to common stockholders was
$32.4 million, or $0.32 per diluted share, in the first quarter of
2004 compared with $30.7 million, or $0.31 per diluted share, in
the first quarter of 2003. Funds from operations (FFO) for the
first quarter of 2004 was $52.3 million, or $0.51 on a diluted per
share basis, compared with $49.1 million, or $0.49 on a diluted per
share basis, in the first quarter of 2003 (as restated downward by
$0.04 per diluted share to reflect the revised FFO methodology
described below). A reconciliation of net income to FFO is
presented in the attached table. 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. Prior
to this pronouncement, the Company had added back impairments in
calculating FFO, in accordance with prior NAREIT guidance, and had
not factored in original issuance costs of preferred stock that had
been redeemed in the calculation of FFO. The Company has restated
its historical calculations of FFO made prior to this pronouncement
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 first quarter, the gross leasable area
(GLA) for New Plan's total stabilized community and neighborhood
shopping centers, including its pro rata share of joint venture
projects, was approximately 92 percent leased. The GLA for New
Plan's total portfolio, including its pro rata share of joint
venture projects (Total Portfolio), was approximately 91 percent
leased at March 31, 2004. The average annual base rent (ABR) at
March 31, 2004 for the Total Portfolio was $8.02 per leased square
foot. During the quarter, 164 new leases, aggregating approximately
964,000 square feet, were signed at an average ABR of $8.23 per
square foot. Also during the quarter, 173 renewal leases,
aggregating approximately 575,000 square feet, were signed at an
average ABR of $10.73 per square foot, an increase of approximately
5.4 percent over the expiring leases. During the first quarter, the
Company completed the redevelopment of four shopping centers and
added seven projects to its redevelopment pipeline, increasing the
pipeline to 35 projects (including joint venture redevelopment
projects) with an aggregate expected cost of $137.0 million
(including costs incurred in prior years on these projects).
Acquisitions and Dispositions During the first quarter of 2004, the
Company acquired, including through co-investments with its joint
venture partners, five shopping centers and the remaining 50
percent interest in a shopping center in which the Company owned
the other 50 percent interest. The shopping centers totaled
approximately 1.3 million square feet and were acquired for an
aggregate of approximately $167.0 million. Acquisitions completed
during the quarter are summarized below: * On January 9, 2004, the
Company acquired New Britain Village Square, a 143,716 square foot
shopping center located in Chalfont, Pennsylvania (Bucks County)
and anchored by Genuardi's Family Market (a Safeway Company), for
approximately $23.4 million, consisting of the issuance of $11.2
million in units in a partnership controlled by the Company and the
assumption of a $12.2 million mortgage loan previously made by the
Company to facilitate the seller's prior acquisition of the
property. * 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 $30.0 million. Clearwater Mall,
located in Clearwater, Florida, is a community shopping center
encompassing a 72-acre site with 292,402 square feet of leased
space, as well as non-owned Costco, Lowe's and SuperTarget anchors.
* Also on January 30, 2004, the Company acquired Elk Grove Town
Center, a 131,849 square foot shopping center located in Elk Grove
Village, Illinois and anchored by Dominick's Foods (a Safeway
Company), for $21.0 million, including $14.5 million of assumed
mortgage indebtedness. * On February 19, 2004, the Company acquired
Villa Monaco, a 122,763 square foot shopping center located in
Denver, Colorado and anchored by King Soopers (a Kroger banner),
for $12.0 million. * On March 17, 2004, the Company acquired
Florence Square, a 360,608 square foot shopping center located in
Florence, Kentucky and anchored by HomeGoods, Kroger, National
Amusement, Staples and TJ Maxx, for approximately $39.5 million,
including $15.8 million of assumed mortgage indebtedness. * On
March 22, 2004, NP/I&G Institutional Retail Company, LLC, the
Company's joint venture with JPMorgan Fleming Asset Management,
acquired Conyers Crossroads, a 246,666 square foot shopping center
located in Conyers, Georgia and anchored by Carmike Cinemas,
Circuit City and Old Navy, as well as an 86,584 square foot ground
lease to Kohl's, for approximately $41.1 million. In addition,
NP/I&G Institutional Retail Company, LLC is under contract to
purchase Phase II of Conyers Crossroads for approximately $13
million upon its completion in Spring 2005. Phase II is expected to
include over 126,000 square feet of GLA anchored by Belk's. During
the first quarter of 2004, the Company generated an aggregate of
approximately $13.2 million of proceeds through the sale of two
properties and one land parcel, as well as the sale of one property
held through a joint venture. Properties sold during the quarter
include Edgebrook Plaza, a 100,170 square foot shopping center
located in Houston, Texas; a 41,293 square foot single tenant
Brookshire's (lease assigned from Safeway) located in West Monroe,
Louisiana; 11.8 acres of land at Westgate in Dublin, Georgia; and
Fruitland Plaza, a 104,095 square foot shopping center located in
Fruitland, Maryland and owned by Benbrooke Ventures, a joint
venture in which the Company has a 50 percent interest. Balance
Sheet Position The Company completed the first quarter with total
book assets of approximately $3.7 billion and a total debt /
undepreciated book value ratio of 46.3 percent. The Company's debt
for the three months ended March 31, 2004 had an overall weighted
average current interest rate of 6.1 percent and a weighted average
maturity of 7.1 years. Approximately 79 percent of the Company's
total debt is fixed rate debt, including the impact of the
Company's interest rate swap agreements that effectively convert
$150 million of outstanding notes from a fixed rate to a blended
floating rate. On February 6, 2004, the Company issued $150 million
aggregate principal amount of unsecured, 7-year fixed rate notes
with a coupon of 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, 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 basis points over the 6-month LIBOR
rate. Dividend For the second 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 July 15, 2004 to common stockholders of
record on July 1, 2004. New Plan Excel Realty Trust, Inc. shares go
ex-dividend on June 29, 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 July 1, 2004, payable on July 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 July 1,
2004, payable on July 15, 2004. Management Comment "Results this
quarter demonstrate the value of our national platform. We
increased occupancy throughout our portfolio, initiated and
advanced redevelopment projects in numerous communities, acquired
assets in five different regions and enhanced our tenant relations.
Our challenge is to stay abreast of the ever changing retail
environment and leverage our national infrastructure to accommodate
the many retailer opportunities that continue to emerge," commented
Glenn J. Rufrano, Chief Executive Officer. Conference Call The
Company will be hosting a teleconference on Thursday, May 6, 2004
at 2:00 PM ET. The teleconference can be accessed by dialing
1-800-901-5231 (International: 1-617-786-2961) or via the web at
http://www.newplan.com/ under Investor Information; Audio Archives.
Please refer to passcode #84322879. A replay of the teleconference
will be available through midnight ET May 13, 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 #63736567. 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 Excel Realty 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 403 properties, including 21 properties
held through joint ventures, and total assets of approximately $3.7
billion. Its properties are strategically located across 35 states
and include 377 community and neighborhood shopping centers,
primarily grocery or name-brand discount chain anchored, with
approximately 54.1 million square feet of gross leasable area, and
26 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 statements involve 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; possible future downgrades in our credit ratings; 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 or
on 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 March 31,
March 31, 2004 2003 Rental Revenues: Rental income $ 95,473 $
91,510 Percentage rents 2,645 1,640 Expense reimbursements 25,812
25,498 TOTAL RENTAL REVENUES 123,930 118,648 Rental Operating
Expenses: Operating costs 23,553 22,282 Real estate and other taxes
14,936 15,422 Provision for doubtful accounts 1,730 1,499 TOTAL
RENTAL OPERATING EXPENSES 40,219 39,203 NET OPERATING INCOME 83,711
79,445 Other Income: Interest, dividend and other income 2,535
3,351 Equity in income of unconsolidated ventures 230 473 TOTAL
OTHER INCOME 2,765 3,824 Other Expenses: Interest expense 26,401
25,770 Depreciation and amortization 21,010 18,540 General and
administrative 4,991 4,230 TOTAL OTHER EXPENSES 52,402 48,540
Income before real estate sales, impairment of real estate and
minority interest 34,074 34,729 Gain on sale of real estate (1)
1,217 -- Minority interest in income of consolidated partnership
(260) (401) INCOME FROM CONTINUING OPERATIONS 35,031 34,328
Discontinued Operations: Results of discontinued operations 952 832
Gain on sale of discontinued operations 1,414 3,483 Impairment of
real estate held for sale -- (3,454) INCOME FROM DISCONTINUED
OPERATIONS 2,366 861 NET INCOME $ 37,397 $ 35,189 Preferred
dividends (5,275) (4,859) NET INCOME AVAILABLE TO COMMON
STOCKHOLDERS -- BASIC 32,122 30,330 Minority interest in income of
consolidated partnership 260 401 NET INCOME AVAILABLE TO COMMON
STOCKHOLDERS -- DILUTED $ 32,382 $ 30,731 Net income per common
share -- basic $ 0.32 $ 0.31 Net income per common share -- diluted
0.32 0.31 Funds from operations: (2) Net income available to common
stockholders -- diluted $ 32,382 $ 30,731 Deduct: Minority interest
in income of consolidated partnership (260) (401) Net income
available to common stockholders -- basic 32,122 30,330 Add:
Depreciation and amortization: Continuing operations real estate
assets 21,010 18,540 Discontinued operations real estate assets 254
578 Pro rata share of joint venture real estate assets 373 254
Deduct: Gain on sale of real estate (1) (3) (1,217) -- Gain on sale
of discontinued operations (3) (946) (1,000) Pro rata share of
joint venture loss on sale of real estate (3) 425 -- FUNDS FROM
OPERATIONS -- Basic 52,021 48,702 Add: Minority interest in income
of consolidated partnership 260 401 FUNDS FROM OPERATIONS --
DILUTED $ 52,281 $ 49,103 Funds from operations per share -- basic
$ 0.52 $ 0.50 Funds from operations per share -- diluted 0.51 0.49
NEW PLAN EXCEL REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF INCOME (In thousands, except per share amounts) Three
Months Ended March 31, March 31, 2004 2003 Funds from operations --
diluted $ 52,281 $ 49,103 Add: Impairment of real estate -- --
Impairment of real estate held for sale -- 3,454 Premium on
redemption of preferred stock -- -- FUNDS FROM OPERATIONS --
DILUTED (prior calculation) $ 52,281 $ 52,557 Funds from operations
per share -- diluted (prior calculation) $ 0.51 $ 0.53 Weighted
average common shares outstanding -- basic 99,419 96,937 ERP
partnership units 1,363 2,178 Options 1,226 487 Weighted average
common shares outstanding -- diluted 102,008 99,602 (1) For the
three months ended March 31, 2004, balance includes $1.2 million of
previously deferred gain incurred in connection with the Company's
sale of 70 percent of its interest in Arapahoe Crossings, LP in
2003. (2) Funds from Operations ("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. Prior
to this pronouncement, the Company had added back impairments in
calculating FFO, in accordance with prior NAREIT guidance, and had
not factored in original issuance costs of preferred stock that had
been redeemed in the calculation of FFO. The Company has revised
its calculations of FFO made prior to this pronouncement in
accordance with NAREIT's revised guidance. To assist investors in
understanding the impact of these changes, 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. (3)
Excludes gain / loss on sale of land. The above does not purport to
disclose all items required under GAAP. The Company's Form 10-Q for
the quarter ended March 31, 2004 should be read in conjunction with
the above information. DATASOURCE: New Plan Excel Realty Trust,
Inc. CONTACT: Stacy Lipschitz, Senior Vice President - Corporate
Communications, of New Plan Excel Realty Trust, Inc.,
+1-212-869-3000 ext. 3359 Web site: http://www.newplanexcel.com/
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