Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real
estate investment trust, today announced its third quarter and nine
months financial results for the period ended July 31, 2011.
Diluted Funds from Operations (FFO) for the quarter ended July
31, 2011 was $8,196,000 or $0.29 per Class A Common share and $0.27
per Common share, compared to $8,496,000 or $0.34 per Class A
Common share and $0.31 per Common share in last year’s third
quarter. For the first nine months of fiscal 2011, diluted FFO
amounted to $26,607,000 or $0.95 per Class A Common share and $0.87
per Common share compared to $21,974,000 or $0.88 per Class A
Common share and $0.80 per Common share in the corresponding period
of fiscal 2010.
Net income applicable to Class A Common and Common stockholders
was $4,249,000 or $0.15 per diluted Class A Common share and $0.14
per diluted Common share in the third quarter of fiscal 2011
compared to $4,519,000 or $0.18 per diluted Class A Common share
and $0.16 per diluted Common share in the same quarter last year.
Net income applicable to Common and Class A Common stockholders for
the first nine months of fiscal 2011 was $14,764,000 or $0.53 per
diluted Class A Common share and $0.48 per diluted Common share
compared to $10,545,000 or $0.42 per diluted Class A Common share
and $0.38 per diluted Common share for the same period last year.
The per share amounts for both FFO and net income in fiscal 2011
include the effect of the Company issuing 2.5 million Class A
Common shares in a follow on public offering in September of
2010.
FFO and net income applicable to Class A Common and Common
stockholders for the nine months ended July 31, 2011 included lease
termination income in the amount of $2.99 million relating to a
lease termination settlement with a grocery store tenant that
vacated its space in the Company’s Meriden property prior to
expiration of its lease. Another grocery store tenant has leased
the space and is now open. The Company will begin accruing rent
related to the new lease in the fourth quarter of fiscal 2011. FFO
and net income for the nine month and three month periods ended
July 31, 2010 included $586,000 in lease termination income related
to a settlement with Bed Bath and Beyond, which vacated space at
the Company’s Staples Plaza property ($516,000) and the settlement
of a lease guarantee obligation with another tenant that vacated
the Company’s Rockledge property ($70,000) in a prior period, which
space has been re-leased.
Rental revenues and net operating income (exclusive of the $2.99
million lease termination income, bad debt expense and straight
line rent) from properties owned in the three and nine month
periods ended July 31, 2011, when compared to the same periods of
fiscal 2010, were relatively unchanged. This primarily resulted
from a loss of rental revenue as a result of four vacancies at
three properties during the first nine months of fiscal 2011 when
compared with the same period in fiscal 2010, offset by new leasing
the Company completed in the second half of fiscal 2010 and the
first half of fiscal 2011 at previously vacant space at six
properties (nine spaces). For the nine months ended July 31, 2011
rental revenues and net operating income from properties acquired
in the third quarter of fiscal 2010 and the first half of fiscal
2011 increased by $2,232,000 and $1,871,000, respectively, when
compared with the corresponding period of fiscal 2010. At July 31,
2011 the percentage of the gross leasable area of the Company’s
core properties that was leased amounted to 91.7%, a decrease of
1.4% from July 31, 2010. The Company has three equity investments
in unconsolidated joint ventures (447,000 square feet); at July 31,
2011 those properties were approximately 98% leased.
Commenting on the quarter’s operating results, Willing L.
Biddle, President and Chief Operating Officer of UBP, said, “While
we are disappointed that the economic environment in the country
remains challenged, we are encouraged to see a slow improvement in
the leasing and property acquisition environment and we are looking
forward to seeing the momentum created with the acquisition of four
grocery anchored properties in fiscal 2010 and one retail property
acquisition thus far in fiscal 2011 continue into the remainder of
the year and beyond. Our operating results, same store rental
revenue, and same store net operating income was relatively
unchanged year over year since the improvement realized by new
leases entered into in fiscal 2010 and fiscal 2011, most notably
West Marine (13,000 sf), Buffalo Wild Wings (8,000 sf) and Savers
(27,000 sf), was largely offset by new vacancies in the first half
of fiscal 2011, including Daffy’s (27,000 sf), Old Navy (25,000
sf), ShopRite (55,000 sf) and Bed Bath & Beyond (21,000 sf).
Looking ahead, the recently opened Big Y World Class Market (55,000
sf) in our Meriden CT shopping center will begin to accrue rent in
the fourth quarter which should help improve our operating results.
At July 31, 2011, our core portfolio was 91.7% leased, but we have
considerable new leasing activity across the portfolio. We have a
good pipeline of acquisitions and expect to increase our asset base
over the balance of the year and into fiscal 2012. Our properties
were spared significant damage from the passing of Hurricane Irene,
only suffering some power outages for a few days and some minor
property damage that did not disrupt our operations in any
significant way”.
Non-GAAP Financial Measure
Funds from Operations (“FFO”)
The Company considers FFO to be a meaningful additional measure
of operating performance because it primarily excludes the
assumption that the value of its real estate assets diminishes
predictably over time and industry analysts have accepted it as a
performance measure. FFO is presented to assist investors in
analyzing the performance of the Company. The Company reports FFO
in addition to net income applicable to common shareholders and net
cash provided by operating activities. FFO is helpful as it
excludes various items included in net income that are not
indicative of the Company’s operating performance, such as gains
(or losses) from sales of property and depreciation and
amortization. The Company has adopted the definition suggested by
the National Association of Real Estate Investment Trusts
(“NAREIT”). The Company defines FFO as net income computed in
accordance with 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.
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.
URSTADT BIDDLE PROPERTIES INC. (NYSE:
UBA AND UBP)
THREE AND NINE MONTHS ENDED 2011
RESULTS
(in thousands, except per share data)
Nine Months
Ended
Three Months
Ended
July
31,
July
31,
2011
2010
2011
2010
Revenues Base rents
$48,100 $47,327
$15,986
$16,136 Recoveries from tenants
16,042 14,967
5,278
5,003 Lease termination income
3,131 633
143 586
Other income
1,567 604
554 88 Total Revenues
68,840 63,531
21,961 21,813
Expenses Property operating
10,982 10,372
3,319 3,054 Property taxes
10,853 10,070
3,628
3,423 Depreciation and amortization
11,386 11,022
3,793 3,845 General and administrative
5,579 5,249
1,848 1,722 Acquisition costs
66 249
13 93
Directors' fees and expenses
204
244 52 70 Total
Operating Expenses
39,070 37,206
12,653 12,207 Operating
Income 29,770 26,325
9,308 9,606
Non-Operating Income (Expense): Interest expense
(5,853) (5,607)
(2,049) (1,985) Equity in net income
from unconsolidated joint ventures
266 75
125 46
Other expense
(5) (395)
(2) 54 Interest, dividends
and other investment income
635
197 216 147
Net Income 24,813 20,595
7,598 7,868
Noncontrolling interests: Net income attributable to
noncontrolling interests
(229)
(230) (76) (76)
Net income attributable to Urstadt Biddle Properties Inc.
24,584 20,365
7,522 7,792 Preferred stock dividends
(9,820) (9,820)
(3,273) (3,273) Net
Income Applicable to Common and Class A Common Stockholders
$14,764 $10,545
$4,249 $4,519 Diluted
Earnings Per Share: Common
$0.48 $0.38
$0.14
$0.16 Class A Common
$0.53 $0.42
$0.15 $0.18
Weighted Average Number of Shares Outstanding: Common
and Common Equivalent
7,938 7,642
8,053 7,746 Class A Common and
Class A Common Equivalent
20,693
18,096 20,722 18,140
URSTADT BIDDLE PROPERTIES INC. (NYSE:
UBA AND UBP)
NINE MONTHS AND THREE MONTHS ENDED JULY
31, 2011 AND 2010
(in thousands, except per share data)
Reconciliation of Net Income Available
to Common andClass A Common Stockholders To Funds From
Operations:
Nine Months Ended
July 31,
Three Months Ended
July 31,
2011
2010
2011
2010
Net Income Applicable to Common and Class
A CommonStockholders
$14,764 $10,545
$4,249 $4,519 Real property
depreciation
9,153 8,667
3,092 2,990 Amortization of
tenant improvements and allowances
1,811 1,939
570
695 Amortization of deferred leasing costs
391 381
120 150 Depreciation and amortization on unconsolidated
joint ventures
488 142
165 142 Loss on assets held
for sale
-
300
-
-
Funds from Operations Applicable to Common
and Class ACommon Stockholders
$26,607 $21,974
$8,196 $8,496 Funds from
Operations (Diluted) Per Share: Common
$0.87 $0.80
$0.27 $0.31 Class A Common
$0.95 $0.88
$0.29 $0.34 Balance Sheet
Highlights
(in thousands) July 31, October 31,
2011
2010
(Unaudited)
Assets Real Estate investments before
accumulated depreciation $613,480
$601,222 Investments in and advances
to unconsolidated joint ventures $25,535
$24,850 Total Assets
$559,299 $557,053
Liabilities Revolving credit lines
$16,100 $11,600
Mortgage notes payable and other loans
$122,789 $118,202
Total Liabilities $154,488
$142,069 Redeemable Preferred
Stock $96,203 $96,203
Redeemable Noncontrolling Interests
$4,035 $11,330
Total Stockholders’ Equity $304,573
$307,451
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