Urstadt Biddle Properties Inc. (NYSE:UBA and UBP), a real estate
investment trust, today reported its operating results for the
first quarter ended January 31, 2014.
Diluted funds from operations (“FFO”) for the first quarter of
fiscal 2014 were $7,972,000 or $0.23 per Common share and $0.26 per
Class A Common share compared with $3,701,000 or $0.11 per Common
share and $0.12 per Class A Common share in last year’s first
quarter. The FFO amounts above include several significant
one-time items in fiscal 2014 and 2013. In an effort to
assist investors in analyzing changes to FFO, we have included a
second FFO reconciliation table at the end of this report which
explains the effect of these one-time items on the company’s FFO
per share.
Net income (loss) from continuing operations applicable to
Common and Class A Common stockholders for the first quarter of
fiscal 2014 was $3,012,000 or $0.09 per diluted Common share and
$0.10 per diluted Class A Common share compared to ($1,089,000), or
($0.03) per diluted Common share and ($0.03) per diluted Class A
Common share in last year’s first quarter. Net income in the
three-month period ended January 31, 2014 included a gain on sale
of properties of $12,612,000.
The per share amounts for both FFO and net income in the first
quarter of fiscal 2013 include the dilutive effect of the issuance
of 2.5 million Class A Common shares in a follow-on public offering
and 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 raised an additional $125
million, which funds were not fully invested until May 2013. $100
million of the preferred stock offering proceeds was used to redeem
the Series E preferred stock in November 2013 and the Series C
preferred stock, which was fully redeemed by May 2013. As a result
of these redemptions, the company incurred charges to expense the
original issue costs of the preferred stock of $3.8 million in the
first quarter of fiscal 2013. The first quarter of fiscal 2013 also
included payment of $476,000 in preferred stock dividends related
to the Series C and Series E preferred stock, while the first
quarter of fiscal 2014 did not include dividends on this preferred
stock as all such shares were redeemed by May of fiscal 2013. In
addition, the per share amounts for FFO and net income for the
three months ended January 31, 2014 and 2013 include one-time
property acquisition costs of $371,000 and $153,000,
respectively.
At January 31, 2014, the Company’s consolidated core properties
were approximately 90.2% leased, an increase of 0.12% from the end
of fiscal 2013 and an increase of 1.06% from the end of fiscal
2012. Overall core property occupancy decreased to 86.8% at January
31, 2014 from 86.9% at the end of fiscal 2013. The Company has
equity interests in five unconsolidated joint ventures (537,000
square feet). At January 31, 2014, these joint ventures were
approximately 97% leased.
Commenting on the quarter’s operating results, Willing L.
Biddle, President and CEO of UBP, said “We are extremely pleased to
have continued our acquisition momentum started in fiscal 2013 by
adding five more properties so far in fiscal 2014. We purchased two
properties in New Jersey, including the Boonton A&P shopping
center in Boonton, a 63,000 square foot center anchored by an
A&P grocery store and located in a high income region of New
Jersey. We also acquired the Bloomfield A&P shopping center
located in Bloomfield, a 56,000 square foot center anchored by an
A&P grocery store and a Walgreens pharmacy. The third property
is The Hub shopping center in Bethel, CT. The Hub is a 31,000
square foot center anchored by a Rite-Aid Pharmacy and a large
local wine retailer. Lastly, we closed on 50% tenant-in-common
interests in two properties subsequent to quarter end. Both are
located in Riverhead, NY at the eastern terminus of the Long Island
Expressway. The first of those two properties is a 194,000 square
foot shopping center anchored by a new 167,000 square foot Wal-Mart
and includes 27,000 square feet of newly built in-line retail space
for which the company is in the process of negotiating leases with
prospective tenants. The second property is a free standing
Applebee’s Restaurant, with development rights for an additional
7,200 square feet of retail space. The Wal-Mart center shares a
traffic light with the Tanger Outlet Center located directly across
the street.”
Continuing, Mr. Biddle said, “Our focus continues to be leasing
the remaining vacant space in our portfolio and it is one of the
company’s paramount goals for 2014. We have recently completed the
re-tenanting of nearly all of the previously vacant space in our
Meriden, CT shopping center and are working diligently to complete
the re-development of the Westchester Pavilion center in White
Plains, NY, where we are seeking a zoning change that will increase
the allowed buildable area to 860,000 from the current 190,000
square feet. At our Chilmark center in Briarcliff Manor, NY we are
well into re-development, including the construction of a new CVS
scheduled for opening in the summer of this year. A significant
milestone was reached this quarter when we completed the sale of
our two remaining industrial properties in St. Louis, MO and
Dallas, TX for $14.75 million. Structuring the transaction as a
tax-deferred exchange allowed the capital to remain in the company
and permitted us to deploy the proceeds of that sale to acquire the
Bethel, CT shopping center and a portion of the Long Island
properties described above. Although these two sales were slightly
dilutive in the short term and reduced FFO in the first quarter,
they improved the company’s balance sheet, removed the last
industrial properties from the portfolio and redeployed the capital
into our core retail property type to which we can more easily add
value.”
Urstadt Biddle Properties Inc. is a self-administered equity
real estate investment trust which owns or has equity interests in
65 properties containing approximately 4.8 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 177 consecutive quarters
of uninterrupted dividends to its shareholders since its inception
and has raised total dividends to its shareholders for the last 21
consecutive years.
Non-GAAP Financial Measure
Funds from Operations (“FFO”)
The company considers FFO to be a meaningful additional measure
of operating performance because it 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. This quarter, the company also has
presented an alternative table of reconciliation between Net Income
Available to Common and Class A Common Stockholders and FFO,
removing the effects of preferred stock redemption costs, excess
preferred stock dividends and property acquisition costs from both
fiscal 2013 and fiscal 2014 operating results.
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)FIRST QUARTER 2014 RESULTS(in thousands,
except per share data)
Three Months Ended
January
31,
2014
2013
Revenues Base rents $18,214 $16,942 Recoveries from tenants
6,382 6,323 Lease termination income 67 - Other income
532 725 Total Revenues
25,195 23,990 Operating
Expenses Property operating 4,926 5,258 Property taxes 4,332
3,808 Depreciation and amortization 4,576 4,139 General and
administrative 2,104 2,152 Provision for tenant credit losses 127
253 Acquisition costs 371 153 Directors' fees and expenses
90 108 Total Operating Expenses
16,526 15,871 Operating Income
8,669 8,119
Non-Operating Income (Expense): Interest
expense (2,404) (2,220) Equity in net income from unconsolidated
joint ventures 306 182 Interest, dividends and other investment
income
50 732 Income from
continuing operations before discontinued operations
6,621 6,813 Discontinued
operations: Income from discontinued operations 141 383 Gain on
sale of properties
12,612 - Income
from Discontinued Operations 12,753
383 Net Income 19,374 7,196
Noncontrolling
interests Net income attributable to noncontrolling interest
(156) (182) Net income attributable to
Urstadt Biddle Properties Inc. 19,218 7,014 Preferred stock
dividends (3,453) (3,961) Redemption of preferred stock
- (3,759) Net Income (Loss)
Applicable to Common and Class A Common Stockholders
$15,765 ($706) Diluted Earnings
(Loss) Per Share: Per Common Share: Income from continuing
operations $0.09 ($0.03) Income from discontinued operations
$0.37 $0.01 Net Income Applicable to
Common Stockholders $0.46 ($0.02)
Per Class A Common Share: Income from continuing operations
$0.10 ($0.03) Income from discontinued operations
$0.41 $0.01 Net Income Applicable to
Class A Common Stockholders $0.51
($0.02) Weighted Average Number of Shares
Outstanding (Diluted): Common and Common Equivalent
8,344 7,543 Class A Common and Class A
Common Equivalent
23,350 23,120
The following information summarizes the Company’s results of
operations for the three month ended January 31, 2014 and 2013 (in
thousands, except percentage amounts):
Three Months Ended
January
31,
Change Attributable
to:
Revenues
2014
2013
Increase(decrease)
%Change
PropertyAcquisitions
Properties HeldIn
Both Periods
Base rents $18,214 $16,942 $1,272 7.5% $1,247 $25 Recoveries from
tenants 6,382 6,323 59 0.9% 432
(373)
Other income 532 725 (193) (26.6%) - (193)
Operating
Expenses Property operating expenses 4,926 5,258 (332) (6.3%)
281 (613) Property taxes 4,332 3,808 524 13.8% 290 234 Depreciation
and amortization 4,576 4,138 438 10.6% 409 29 General and
administrative expenses 2,104 2,152 (48) (2.2%) n/a n/a
Other Income/Expenses Interest expense 2,404 2,220 184 8.3%
322 (138) Interest, dividends and other investment income 50 732
(682) (93.2%) n/a n/a
Revenues:
Base rents increased by 7.5% to $18.2 million for the three
month period ended January 31, 2014 as compared with $16.9 million
in the comparable period of 2013. The change in base rentals and
the changes in other income statement line items were attributable
to:
Property Acquisitions:
In fiscal 2013 and the first quarter of fiscal 2014, the company
purchased equity interests in 14 properties totaling approximately
327,000 square feet of GLA. These properties accounted for all of
the revenue and expense changes attributable to property
acquisitions during the three month period ended January 31, 2014.
In addition, the company purchased an equity interest in two
properties in fiscal 2013 that are accounted for by the equity
method of accounting and are not consolidated into the financial
statements of the company and as such are not included in any of
the variance analysis presented below.
Properties Held in Both
Periods:
Base rents were relatively unchanged in the first quarter of
fiscal 2014 when compared with the corresponding prior period as
the percentage of the portfolio that was leased was relatively
unchanged in the first quarter of fiscal 2014 when compared to the
corresponding prior period. In the quarter ended January 31, 2014,
the company leased or renewed approximately 137,200 square feet (or
approximately 3.2% of total consolidated core property leasable
area). At January 31, 2014, the company’s consolidated core
properties were approximately 90.2% leased, an increase of 0.12%
from the end of fiscal 2013 and an increase of 1.06% from the end
of fiscal 2012. Overall core property occupancy decreased to 86.8%
at January 31, 2014 from 86.9% at the end of fiscal 2013.
In the three month period ended January 31, 2014, recoveries
from tenants for properties owned in both periods (which represents
reimbursements from tenants for operating expenses and property
taxes) decreased by a net $373,000. This net decrease was a result
of lower operating expenses at company properties held in both
periods of $613,000 due predominantly to an a decrease in parking
lot repairs partially offset by an increase in snow removal
costs.
Interest, dividends and other investment income decreased by
$682,000 in the three month period ended January 31, 2014, when
compared with the corresponding period from the prior year,
predominantly as a result of the company investing approximately
$27 million of the proceeds from its two equity offerings completed
in October 2012 in income producing securities in the first quarter
of fiscal 2013, which securities were sold in the third quarter of
fiscal 2013.
Property operating expenses for properties held in both periods
decreased by $613,000 in the three month period ended January 31,
2014 when compared with the corresponding period from the prior
year due predominantly to a decrease in parking lot repairs
partially offset by an increase in snow removal costs.
Real estate taxes for properties held in both periods were up
$234,000 as a result of normal tax assessment increases.
Interest expense for properties held in both periods decreased
by $138,000 in the three month period ended January 31, 2014 when
compared with the corresponding period from the prior year as a
result of normal principal amortization.
Depreciation and amortization expense from properties held in
both periods was relatively unchanged.
General and administrative expenses decreased by a net $48,000
in the three month period ended January 31, 2014, when compared to
the corresponding period in fiscal 2013, primarily due to a
decrease in professional and stock exchange fees offset by an
increase in compensation and benefits.
URSTADT BIDDLE PROPERTIES INC. (NYSE:
UBA AND UBP)FIRST QUARTER 2014 RESULTS(in thousands,
except per share data)
Reconciliation of Net Income (Loss) Available to
Three Months Ended
Common and Class A Common Stockholders
To Funds From Operations:
January
31,
2014
2013
Net Income (loss) Applicable to Common and Class A Common
Stockholders
$15,765 ($706) Real property
depreciation
3,765 3,228 Amortization of tenant improvements
and allowances
678 800 Amortization of deferred leasing
costs
114 112 Depreciation and amortization on
unconsolidated joint ventures
262 188 (Gain)/Loss on sale of
property
(12,612) 79 Funds from
Operations Applicable to Common and Class A Common Stockholders
$7,972 $3,701 Funds from
Operations (Diluted) Per Share: Common
$.23
$.11 Class A Common
$.26
$.12
The following table reconciles the company’s net income
(loss) available to Common and Class A Common Stockholder to Funds
From Operations after removing the preferred stock redemption
charges, property acquisition costs and excess preferred stock
dividends:
Reconciliation of Net Income (Loss)
Available to
Three Months Ended
Common and Class A Common Stockholders
To Recurring Funds From Operations:
January
31,
2014
2013
Net Income (loss) Applicable to Common and Class A Common
Stockholders
$15,765 ($706) Add: Redemption of preferred
stock charges
- 3,759 Add: Property acquisition costs
371 153 Add: Excess preferred stock dividends (Note 1)
- 476 Net Income Applicable to
Common and Class A Common Stockholders
16,136 3,682
Real property depreciation
3,765 3,228 Amortization of
tenant improvements and allowances
678 800 Amortization of
deferred leasing costs
114 112 Depreciation and amortization
on unconsolidated joint ventures
262 188 (Gain)/Loss on sale
of property
(12,612) 79 Funds from
Operations Applicable to Common and Class A Common Stockholders
$8,343 $8,089 Funds from
Operations (Diluted) Per Share: Common
$.24
$.24 Class A Common
$.27
$.26
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 preferred stock in various stages through May
of 2013. The company incurred excess preferred stock dividends of
approximately $476,000 in the first quarter of fiscal 2013 as a
result of having the new series of preferred stock outstanding
prior to being able to redeem the series C and E preferred
stock.
URSTADT BIDDLE PROPERTIES INC. (NYSE:
UBA AND UBP)FIRST QUARTER 2014 RESULTS(in thousands)
Balance Sheet Highlights
(in thousands) January 31, October 31,
2014
2013
(Unaudited)
Assets
Cash and Cash Equivalents $7,073
$2,945 Real Estate investments before
accumulated depreciation $769,294
$732,159 Investments in and advances to
unconsolidated joint ventures $30,939
$31,432 Total Assets
$693,150 $650,026
Liabilities
Revolving credit lines $25,600
$9,250 Mortgage notes payable and other
loans $181,046 $166,246
Total liabilities
$226,556 $192,269
Redeemable Noncontrolling Interests
$11,374 $11,843 Total
Stockholders’ Equity $455,220
$445,914
Urstadt Biddle Properties Inc.Willing L. Biddle,
203-863-8200CEOorJohn T. Hayes, 203-863-8200CFO
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