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, 2012.
Diluted Funds from Operations (FFO) for the quarter ended July
31, 2012 was $8,535,000 or $0.30 per Class A Common share and $0.27
per Common share, compared to $8,196,000 or $0.29 per Class A
Common share and $0.27 per Common share in last year’s third
quarter. For the first nine months of fiscal 2012, diluted FFO
amounted to $24,681,000 or $0.88 per Class A Common share and $0.80
per Common share compared to $26,607,000 or $0.95 per Class A
Common share and $0.87 per Common share in the corresponding period
of fiscal 2011.
Net income applicable to Class A Common and Common stockholders
was $4,221,000 or $0.15 per diluted Class A Common share and $0.14
per diluted Common share in the third quarter of fiscal 2012
compared to $4,249,000 or $0.15 per diluted Class A Common share
and $0.14 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 2012 was $11,385,000 or $0.40 per
diluted Class A Common share and $0.37 per diluted Common share
compared to $14,764,000 or $0.53 per diluted Class A Common share
and $0.48 per diluted Common share for the same period last
year.
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, CT property prior to
expiration of its lease. The Company re-leased the space to another
grocery store tenant that began paying rent related to the new
lease in August of fiscal 2011. In addition, net income and FFO for
the nine month periods ended July 31, 2012 and 2011 were reduced by
acquisition costs of $296,000 and $66,000, respectively, for
property acquisitions in those periods. Prior to fiscal 2010 these
costs were not expensed under generally accepted accounting
principles.
Base rental revenue and net operating income (exclusive of the
$2.99 million lease termination income in fiscal 2011) from
properties owned in the nine month period ended July 31, 2012, when
compared to the same period of fiscal 2011, increased by $301,000
and $353,000, respectively. For the nine months ended July 31,
2012, rental revenues and net operating income from properties
acquired in the last quarter of fiscal 2011 and first nine months
of fiscal 2012 increased by $2,818,000 and $2,011,000,
respectively. At July 31, 2012, the percentage of the gross
leasable area of the Company’s core properties that was leased
amounted to 91.0%, a decrease of 0.6% from the end of fiscal 2011
and relatively unchanged from last quarter. The Company has three
equity investments in unconsolidated joint ventures (447,000 square
feet); at July 31, 2012, those properties were 96.8% leased.
Commenting on the quarter’s operating results, Willing L.
Biddle, President and Chief Operating Officer of UBP, said, “As we
move closer to the end of our fiscal year, our primary goal of
leasing the vacant space in our portfolio has not changed. Overall,
we feel good about the direction of the leasing at most of our
properties, although we do have three or four properties where the
leasing environment coming out of the recession has been more
challenging. For these three or four properties we believe we have
a good strategy in place to improve each property’s position in its
local marketplace and as a result we expect to be successful in
leasing the vacant space at those properties. So far in 2012, we
have closed two property acquisitions in our core marketplace and
as always, we are in the market to purchase more grocery anchored
shopping centers. We are encouraged to see an uptick in our FFO and
our overall operating results this quarter as some of the leasing
we completed in late 2011 and 2012 began to come on line without
being offset by additional vacancies. In addition, our results were
bolstered by the earnings from the two completed 2012 acquisitions.
After adjusting for the $3 million lease termination income from
fiscal 2011, our operating results, same store base rental revenue,
and same store net operating income are up moderately for the nine
months of 2012 when compared with the corresponding period last
year. We look forward to building on that positive momentum.
Looking ahead, we will continue to focus on improving and
re-developing our existing portfolio to strengthen it for the long
term. At July 31, 2012, our core portfolio was 91% leased, up
modestly from the end of fiscal 2011 but still below our historical
norm of 96%. We view this as an opportunity to grow our earnings by
leasing these vacancies.”
At their regular meeting, the Directors of the Company approved
a quarterly dividend on shares of the company’s Class A Common
Stock and Common Stock. The quarterly dividend rates approved were
$0.2475 for each share of Class A Common Stock and $0.225 for each
share of Common Stock. The dividends are payable October 19, 2012
to stockholders of record on October 5, 2012.
Urstadt Biddle Properties Inc. is a self-administered equity
real estate investment trust which owns or has equity interests in
54 properties containing approximately 4.9 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 171 consecutive quarters
of uninterrupted dividends to its shareholders since its inception
and raised its dividend to its shareholders for the last 18
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 generally accepted accounting principles, 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 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 2012
RESULTS
(in thousands, except per share data)
Nine Months
Ended
Three Months
Ended
July
31,
July
31,
2012
2011
2012
2011
Revenues Base rents
$ 50,984 $ 48,100
$
17,127 $ 15,986 Recoveries from tenants
15,359 16,042
5,229 5,278 Lease termination income
87 3,131
- 143 Other income
1,805
1,567 727
554 Total Revenues
68,235 68,840
23,083 21,961
Expenses Property operating
10,797
10,982
3,642 3,319 Property taxes
11,229 10,853
3,775 3,628 Depreciation and amortization
12,508
11,386
4,125 3,793 General and administrative
5,655
5,579
1,847 1,848 Acquisition costs
296 66
3
13 Directors' fees and expenses
201
204 61
52 Total Operating Expenses
40,686 39,070
13,453
12,653 Operating Income
27,549 29,770
9,630 9,308
Non-Operating Income
(Expense): Interest expense
(6,637 ) (5,858 )
(2,317 ) (2,051 ) Equity in net income from
unconsolidated joint ventures
(43 ) 266
123
125 Interest, dividends and other investment income
672 635
223 216
Net Income 21,541 24,813
7,659
7,598
Noncontrolling interests: Net income
attributable to noncontrolling interests
(336 )
(229 ) (165
) (76 ) Net
income attributable to Urstadt Biddle Properties Inc.
21,205
24,584
7,494 7,522 Preferred stock dividends
(9,820 )
(9,820 )
(3,273 )
(3,273 ) Net Income Applicable
to Common and Class A Common Stockholders $
11,385 $
14,764 $
4,221 $ 4,249
Diluted Earnings Per Share: Common
$
.37 $ .48
$ .14 $ 0.14 Class A Common
$
.40 $ .53
$ .15 $ 0.15
Dividends Per
Share: Common
$ .6750
$ .6675
$ .2250
$ .2225 Class A Common
$ .7425
$ .7350 $
.2475 $ .2450
Weighted Average Number of Shares Outstanding
Common and Common Equivalent
8,165
7,938
8,268 8,053
Class A Common and Class A Common Equivalent
20,765 20,693
20,801 20,722
URSTADT BIDDLE PROPERTIES INC. (NYSE:
UBA AND UBP)
NINE MONTHS AND THREE MONTHS ENDED JULY
31, 2012 AND 2011
(in thousands, except per share data)
Nine Months
Ended
Three Months
Ended
July
31,
July
31,
2012
2011
2012
2011
Net Income Applicable to Common and Class A Common Stockholders
$ 11,385 $ 14,764
$ 4,221 $ 4,249
Real property depreciation
9,841 9,153
3,332
3,092 Amortization of tenant improvements and allowances
2,261 1,811
666 570 Amortization of deferred leasing
costs
363 391
112 120 Loss on sale of property
88 -
88 - Depreciation and amortization on
unconsolidated joint ventures
743
488 116
165 Funds from Operations Applicable to Common and
Class A Common Stockholders
$
24,681 $ 26,607
$ 8,535 $
8,196 Funds from Operations (Diluted) Per
Share: Common
$ .80
$ .87 $
.27 $ .27 Class A
Common
$ .88 $
.95 $ .30
$ .29 Balance Sheet
Highlights (in thousands)
July 31,
October 31,
2012
2011
(Unaudited)
Assets Real Estate investments before
accumulated depreciation $
659,211 $ 631,167
Investments in and advances to unconsolidated joint
ventures $ 26,647
$ 26,384 Total Assets
$ 592,881 $
576,264 Liabilities Revolving credit
lines $ 21,900
$ 41,850 Mortgage notes payable
and other loans $
151,228 $ 118,135
Total liabilities $
189,888 $ 175,019
Redeemable Preferred Stock $
96,203 $ 96,203
Redeemable Noncontrolling Interests
$ 11,778 $
2,824 Total Stockholders’ Equity
$ 295,012 $
302,218
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