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, 2013.
Diluted Funds from Operations (FFO) for the quarter ended July
31, 2013 was $9,052,000 or $0.29 per Class A Common share and $0.26
per Common share, compared to $8,535,000 or $0.30 per Class A
Common share and $0.27 per Common share in last year’s third
quarter. For the first nine months of fiscal 2013, diluted FFO
amounted to $20,405,000 or $0.66 per Class A Common share and $0.59
per Common share compared to $24,681,000 or $0.88 per Class A
Common share and $0.80 per Common share in the corresponding period
of fiscal 2012.
Net income applicable to Class A Common and Common stockholders
was $4,241,000 or $0.14 per diluted Class A Common share and $0.12
per diluted Common share in the third quarter of fiscal 2013
compared to $4,221,000 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 2013 was $6,621,000 or $0.21 per
diluted Class A Common share and $0.19 per diluted Common share
compared to $11,385,000 or $0.40 per diluted Class A Common share
and $0.37 per diluted Common share for the same period last
year.
The per share amounts for both FFO and net income in the nine
month period ended July 31, 2013 include the dilutive effect of the
company issuing 2.5 million Class A Common shares in a follow-on
public offering and issuing 5.175 million shares of a new Series F
Preferred Stock, both in October 2012. The common stock offering
raised net proceeds of $48 million and the preferred stock offering
an additional $125 million, which funds were not fully invested
until May 2013. The primary purpose of the preferred stock offering
was to fund the future redemption of the Series E and Series C
preferred stock. Although the company incurred an additional
$153,000 and $1.1 million in preferred stock dividends in the three
and nine month periods ended July 31, 2013 as a result of the
October 2012 preferred offering, the lower coupon rate of that
offering will save the company $1.375 million in annual preferred
dividends in perpetuity. The company redeemed the Series E
preferred stock in November 2012 at a make whole price $25.77 per
share, which included a $0.77 per share make whole premium of $1.8
million over the $25 per share liquidation preference. In addition,
the company also re-purchased approximately 44% of the Series C
preferred stock outstanding at a slight premium, but for less than
the cost of scheduled dividends to the stated call date. The
company redeemed the remaining Series C preferred stock at $25 per
share (par value) on May 29, 2013, which was the earliest date
permissible. As a result of the redemption of the Series E
preferred stock and the Series C preferred stock, the company
incurred charges to expense the original issue costs of these
preferred shares. The costs expensed, together with the Series E
premium, amounted to $4.2 million, of which $3.8 million was
chargeable in the quarter ended January 31, 2013, $405,000 was
chargeable in the quarter ended April 30, 2013 and $68,000 was
chargeable in the quarter ended July 31, 2013. In addition, the per
share amounts for both FFO and net income in the three and nine
months ended July 31, 2013 include a $1.46 million gain on the sale
of marketable securities. A majority of the securities sold had
been purchased in November 2012 with proceeds from the Company’s
stock offerings completed in October 2012. The per share amounts
for both the FFO and net income also include property acquisition
costs for the three and nine months ended July 31, 2013 of $537,000
and $815,000, respectively. In an effort to assist investors in
analyzing changes to FFO, we have included a second FFO
reconciliation table located at the end of this press release that
explains the effect of these one-time charges on the company’s FFO
and FFO per share in the third quarter and first nine months of
fiscal 2013.
Base rental income (exclusive of a provision for tenant credit
losses and straight line rent) from properties owned in the nine
and three month periods ended July 31, 2013 and 2012 increased by
$275,000 and $118,000, respectively as a result of normal base
rental increases in the portfolio and new leasing in excess of new
vacancies. Net operating income from properties owned in the nine
month and three month periods ended July 31, 2013 and 2012
decreased by $329,000 and $17,000, respectively, mostly as a result
of higher CAM costs at some of these properties, not all of which
is recoverable through billings to the tenants.
At July 31, 2013, the percentage of the gross leasable area of
the Company’s consolidated core properties that was leased amounted
to 89.94%, an increase of 0.77% from the end of fiscal 2012 and
down 0.84% from last quarter. The Company has 5 equity investments
in unconsolidated joint ventures (537,000 square feet); at July 31,
2013, those properties were 95.29% leased.
Commenting on the quarter’s operating results, Willing L.
Biddle, Chief Executive Officer of UBP, said “In the third quarter,
we completed investing capital realized from stock offerings
completed in October 2012 by acquiring equity interests in three
properties. In May, we closed on a $35 million 110,000 sf grocery
anchored shopping center located in our core marketplace in New
Providence, New Jersey; the center is anchored by a 46,000 sf
A&P Fresh supermarket. In the same month, we closed on an $18
million purchase of two retail properties located on U.S. Route 1
in Greenwich, CT. One property contains 10,000 sf of GLA and
includes Cosi and JP Morgan Chase Bank and is shadow anchored by a
Stop & Shop grocery store, while the other property contains
15,000 sf of retail including Jos A. Bank and other retailers that
provide basic community necessities. In addition, after quarter end
we entered into a contract to purchase two additional grocery
anchored shopping centers in our core marketplace, each being
located in northern New Jersey. One property, an $11.0 million,
56,000 sf shopping center, anchored by a 31,000 sf A&P Fresh
supermarket, is subject to the assumption of a mortgage in the
amount of $7.8 million. The other property, an $18.4 million,
63,000 sf shopping center, anchored by a 43,000 sf A&P Fresh
supermarket, is subject to the assumption of a mortgage in the
amount of $8 million. In addition, after quarter end we entered
into a contract to sell our two warehouse properties. The decline
in our Funds from Operations for the first nine months of the year
was expected due to the payment of additional preferred stock
dividends during the period when both the newly issued Series F
preferred shares and the recently redeemed, and more costly, Series
C and E preferred shares were outstanding, and from charges related
to the redemption of the Series C and E shares. The Company made
the strategic decision to accept the higher short term expense in
order to lower its fixed charges significantly in perpetuity.”
Continuing, Mr. Biddle said, “the Company’s primary focus always
has been leasing the vacant space in our portfolio. While we feel
positive about the direction of our leasing, there are four
properties in the portfolio where the leasing environment has been
especially challenging. For each of these properties, we believe we
have initiated specific steps to improve the property’s operating
results. For our property located in Meriden, CT, we recently
signed two substantial leases, one with Fitness Edge, a regional
quality health club, for 33,300 sf and another with PetSmart, for
13,000 sf. We are expecting to begin accruing rent under both
leases in early fiscal 2014. At the company’s property in White
Plains, NY, we are currently exploring a zoning change which, if
granted, may significantly improve our ability to re-develop that
center. At the third property located in Yorktown, NY we have
commenced construction of a self-storage facility in 89,000 sf of
warehouse space, which should enable us to generate higher income
than the former warehouse use. For the last property, located in
Briarcliff Manor, NY, we have begun construction on a
re-development of the center that will include a new CVS
Pharmacy.”
Urstadt Biddle Properties Inc. is a self-administered equity
real estate investment trust which owns or has equity interests in
66 properties containing approximately 5.1 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 175 consecutive quarters
of uninterrupted dividends to its shareholders since its inception
and raised its dividend to its shareholders for the last 19
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 (“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 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.
(Table Follows)
URSTADT BIDDLE PROPERTIES INC.
(NYSE: UBA AND UBP) NINE AND THREE MONTHS ENDED 2013 RESULTS
(UNAUDITED)
(in thousands, except per share data)
Nine Months
Ended
Three Months
Ended
July
31,
July
31,
2013
2012
2013
2012
Revenues
Base rents
$
51,249
$ 49,818
$ 17,689 $ 16,736 Recoveries from tenants
17,067 15,359
5,180 5,229 Lease termination income
148 87
124 - Other income
1,720 1,805
620 727
Total Revenues
70,184
67,069 23,613
22,692 Expenses
Property operating
13,612 10,794
3,917 3,642 Property
taxes
11,548 11,229
4,011 3,775 Depreciation and
amortization
12,904 12,440
4,556 4,106 General and
administrative
6,245 5,655
2,099 1,847 Acquisition
costs
815 296
537 3 Directors' fees and expenses
250 201
70 61
Total Operating Expenses
45,374
40,615
15,190 13,434
Operating Income 24,810 26,454
8,423
9,258
Non-Operating Income (Expense): Interest expense
(6,774 ) (6,637 )
(2,531 ) (2,317 )
Gain on sale of marketable securities
1,460 -
1,460 -
Equity in net income (loss) from unconsolidated joint ventures
950 (43 )
349 123 Interest, dividends and other
investment income
1,381
672 139
223 Income From Continuing
Operations Before Discontinued Operations 21,827 20,446
7,840 7,287
Discontinued operations (See Note 1):
Income from discontinued operations
990
1,095
225 372
Net Income 22,817 21,541
8,065 7,659
Noncontrolling interests: Net income attributable to
noncontrolling interests
(467
) (336 )
(150 )
(165 ) Net income attributable to Urstadt
Biddle Properties Inc.
22,350 21,205
7,915 7,494
Preferred stock dividends
(11,496 ) (9,820 )
(3,606 ) (3,273 ) Redemption of preferred stock
(4,233 )
- (68
) - Net
Income Applicable to Common and Class A Common Stockholders
$ 6,621
$ 11,385 $
4,241 $ 4,221
Basic Earnings Per Share: Per Common Share:
Income from continuing operations
$ 0.17 $ 0.34
$ 0.12 $ 0.13
Income from discontinued operations
0.03 0.04
0.01 0.01
Net Income Applicable to
Common Stockholders $
0.20
$
0.38
$
0.13
$
0.14
Per Class A Common Share: Income from continuing
operations
$ 0.19 $ 0.38
$ 0.13 $ 0.14
Income from discontinued operations
0.03 0.04
0.01 0.01
Net Income Applicable to Class
A Common Stockholders $
0.22
$
0.42
$
0.14
$
0.15
Diluted Earnings Per Share: Per Common Share:
Income from continuing operations
$ 0.16 $ 0.33
$ 0.11 $ 0.13 Income from discontinued operations
$ 0.03
$ 0.04 $
0.01 $ 0.01
Net Income Applicable to Common Stockholders
$ 0.19
$ 0.37 $
0.12 $ 0.14
Per Class A Common Share: Income from continuing
operations
$ 0.18 $ 0.36
$ 0.13 $ 0.14
Income from discontinued operations
$ 0.03
$ 0.04 $
0.01 $ 0.01
Net Income Applicable to Class A Common Stockholders
$ 0.21
$ 0.40 $
0.14 $ 0.15
Dividends Per Share: Common
$ 0.6750
$ 0.6750 $
0.2250 $
0.2250 Class A $
0.7500 $
0.7425 $
0.2500 $
0.2475 Weighted Average Number of
Shares Outstanding Common and Common Equivalent
8,363 8,165
8,454 8,268
Class A Common and Class A Common Equivalent
23,347 20,766
23,383 20,801
NOTE 1As of July 31, 2013,
the company’s two warehouse properties are accounted for as held
for sale and as such, the operating results of the two warehouse
properties in the above consolidated statements of income are shown
as discontinued operations for all periods presented.
URSTADT BIDDLE PROPERTIES INC.
(NYSE: UBA AND UBP) NINE MONTHS AND THREE MONTHS ENDED JULY
31, 2013 AND 2012 (UNAUDITED)
(in thousands, except per share data)
Reconciliation of Net Income Available to
Common Nine Months Ended Three Months Ended
and Class A Common Stockholders To Funds
July
31,
July
31,
From Operations (in thousands):
2013
2012
2013
2012
Net Income Applicable to Common and Class A Common Stockholders
$ 6,621 $ 11,385
$ 4,241 $ 4,221
Real property depreciation
10,435 9,841
3,928 3,332
Amortization of tenant improvements and allowances
2,065
2,237
469 658 Amortization of deferred leasing costs
351 319
140 101 Depreciation and amortization on
discontinued operations
47 68
13 19 Depreciation and
amortization on unconsolidated joint ventures
711 88
261 88 Loss on sale of property
175 743
- 116 Funds from Operations
Applicable to Common and Class A Common Stockholders
$ 20,405 $
24,681 $ 9,052
$ 8,535 Funds from Operations
(Diluted) Per Share: Common
$
.59 $ .80
$ .26 $
.27 Class A Common
$
.66 $ .88
$ .29 $
.30
The following table reconciles the company’s net income
(loss) available to Common and Class A Common Stockholders to Funds
From Operations for the nine month and three months periods ended
July 31, 2013 after removing the preferred stock redemption
charges, excess preferred stock dividends, property acquisitions
costs and gain on marketable securities. (See Note 1).
Reconciliation of Net Income Available to Common and
Nine Months Ended
Three Months Ended
Class A Common Stockholders To
Recurring Funds From
July
31,
July
31,
Operations (in thousands):
2013
2012
2013
2012
Net Income (loss) Applicable to Common and Class A Common
Stockholders
$ 6,621 $ 11,385
$ 4,241 $
4,221 Add: Redemption of preferred stock charges
4,233 -
68 - Add: Excess preferred stock dividends (Note 1)
1,106 -
153 - Add: Property Acquisition Costs
815 296
537 3 Less: Gain on marketable equity
securities
(1,460 )
- (1,460
) - Net Income Applicable
to Common and Class A Common Stockholders
11,315 11,681
3,539 4,224 Real property depreciation
10,435
9,841
3,928 3,332 Amortization of tenant improvements and
allowances
2,065 2,237
469 658 Amortization of
deferred leasing costs
351 319
140 101 Depreciation
and amortization on discontinued operations
47 68
13
19 Depreciation and amortization on unconsolidated joint ventures
711 88
261 88 Loss on sale of property
175 743
- 116 Funds from
Operations Applicable to Common and Class A Common Stockholders
$ 25,099
$ 24,977 $
8,350 $ 8,538
Funds from Operations (Diluted) Per Share: Common
$ .73 $
.80 $ .24
$ .27 Class A Common
$ .81 $
.88 $ .27
$ .30
Note 1 – The Company sold preferred stock in October of 2012 for
the main purpose of redeeming its Series E and Series C preferred
stock. The company redeemed the Series E on November 21, 2012 and
redeemed the Series C on May 29, 2013. Until this redemption was
able to take place the Company incurred excess preferred stock
dividends in the first and second quarters of fiscal 2013 of
approximately $476,000 per quarter and $154,000 in the third
quarter.
Balance Sheet Highlights (in
thousands)
July 31,
October 31,
2013
2012
(Unaudited)
Assets Real Estate investments before
accumulated depreciation $
728,907 $ 660,375
Investments in and advances to unconsolidated joint
ventures $ 31,435
$ 26,708 Total Assets
$ 651,398 $
724,243 Liabilities Revolving credit
lines $ 4,000
$ 11,600 Mortgage notes payable
and other loans $
167,288 $ 143,236
Total liabilities $
190,736 $ 228,304
Redeemable Preferred Stock $
- $ 21,510
Redeemable Noncontrolling Interests $
12,494 $ 11,421
Total Stockholders’ Equity $
448,168 $ 463,008
Urstadt Biddle Properties Inc.Willing L. Biddle, CEOorJohn T.
Hayes, CFO203-863-8200
Urstadt Biddle Properties (NYSE:UBA)
Historical Stock Chart
From Sep 2024 to Oct 2024
Urstadt Biddle Properties (NYSE:UBA)
Historical Stock Chart
From Oct 2023 to Oct 2024