Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real
estate investment trust, today reported its operating results for
the three and six months ended April 30, 2017.
Net income applicable to Class A Common and Common stockholders
for the second quarter of fiscal 2017 was $24,101,000 or $0.64 per
diluted Class A Common share and $0.57 per diluted Common share,
compared to $4,769,000 or $0.14 per diluted Class A Common share
and $0.12 per diluted Common share in last year’s second quarter.
Net income attributable to Class A Common and Common stockholders
for the first six months of fiscal 2017 was $27,513,000 or $0.74
per diluted Class A Common share and $0.65 per diluted Common
share, compared to $7,646,000 or $0.22 per diluted Class A Common
share and $0.20 per diluted Common share in the first six months of
fiscal 2016. Net income in the three and six months ended April 30,
2017 includes a gain on sale of property in the amount of $19.5
million.
Funds from operations (“FFO”) for the second quarter of fiscal
2017 was $11,204,000 or $0.30 per diluted Class A Common share and
$0.26 per diluted Common share, compared with $10,752,000 or $0.31
per diluted Class A Common share and $0.28 per diluted Common share
in last year’s second quarter. For the first six months of fiscal
2017, FFO amounted to $21,569,000 or $0.58 per diluted Class A
Common share and $0.51 per diluted Common share, compared to
$19,428,000 or $0.57 per diluted Class A Common share and $0.51 per
diluted Common share in the corresponding period of fiscal
2016.
At April 30, 2017, the company’s consolidated properties were
93.1% leased (versus 93.3% at the end of fiscal 2016) and 92.6%
occupied (versus 92.8% at the end of fiscal 2016). The decline in
the company’s leased rate in the first half of the year when
compared with the end of fiscal 2016 was predominantly related to
the company absorbing a 6,500 square foot vacancy at its Ridgeway
Shopping center in Stamford, CT when its lease with EMS was
rejected in bankruptcy.
Both the percentage of property leased and the percentage of
property occupied referenced in the preceding paragraph exclude the
company’s unconsolidated joint ventures. At April 30, 2017, the
company had equity interests in seven unconsolidated joint ventures
(751,000 square feet), which were 98.5% leased (versus 98.4% at the
end of fiscal 2016).
Commenting on the quarter’s operating results, Willing L.
Biddle, President and CEO of Urstadt Biddle Properties Inc., said
“We had another strong quarter with an FFO increase for the second
quarter of 4.2% on a dollar value basis over fiscal 2016’s second
quarter, even with the Pavilion vacant for most of the quarter
until it was sold on March 1, 2017. We purchased the Pavilion in
2002 and operated it for over 10 years as a successful power center
mall. In 2013, with the expiration of certain large leases pending,
we realized the property had great potential to be redeveloped into
a much larger retail/residential mixed-use project. This project
could not have become a reality without the cooperation and support
of Mayor Thomas Roach and the White Plains Common Council who
understood our plan and ultimately supported a re-development of
the property to include two high-rise buildings containing over 700
apartments above 75,000 square feet of lower floor retail. The
sales price of $56.6 million we received from the purchaser, Lennar
Corporation, was a substantial premium over the price that we paid
for the property in 2002 and allowed us to realize a gain on the
sale of the property this quarter of $19.5 million. With the
Pavilion sold we can better focus our efforts on new acquisition
opportunities to re-deploy the Pavilion sales proceeds into new
commercial properties that better fit our investing strategy.”
Mr. Biddle continued……“In March we were able to immediately
deploy a portion of the Pavilion proceeds when we purchased the
36,500 square foot Van Houten Farms Shopping Center located in
Passaic, NJ for $7.1 million. Van Houten Farms tenants include a
30,600 square foot Gala Fresh Supermarket, Valley National Bank, a
local Italian restaurant and a stationery store. The purchase was
funded with cash from the sale of the Pavilion and the assumption
of a first mortgage secured by the property in the amount of $3.5
million, which bears interest at the rate of 4.64%. The Van Houten
Farms Shopping Center occupies roughly an entire block front on Van
Houten Avenue, with two points of ingress/egress on each side of
the center. There is an old, but well occupied, industrial area
behind the property that adds foot traffic to the shopping center.
Our long-term plan is to enhance the appearance of the center by
adding a drive-thru for Valley National Bank and purchasing a small
two-story building on the corner of the property to erect a retail
pad. The grocer is nearing completion of an interior renovation and
is considering a façade renovation in conjunction with our
renovation plan. Also in March 2017, we purchased for $3.1 million
a 12,900 square foot free standing retail property located in
Fairfield, CT that is leased to Walgreen’s that is no longer
occupying the space but paying rent. We are negotiating with
Walgreen’s for them to buy out the present value of the remaining
term of their lease and we have several prospects to re-lease the
space. Also in March, we acquired an 8.8% interest in a joint
venture, which owns three properties located in Stamford and
Greenwich, CT. The properties consist of the High Ridge Shopping
Center, an 87,300 square foot shopping center located on High Ridge
Road, which is anchored by Trader Joe’s supermarket and DSW shoe
store, with 23 additional tenants, including Starbucks, AT&T,
Rye Ridge Deli and Pet Valu; a free-standing 4,200 square foot
building leased to Chase Bank with a drive thru located on High
Ridge Road, just south of High Ridge Shopping Center; and a free
standing 8,000 square foot building leased to CVS located on Sound
Beach Avenue in Old Greenwich. The transaction was structured as a
“DownREIT partnership” whereby the seller received a combination of
cash and operating partnership units in a new entity formed to
purchase the portfolio, other than the Fairfield property, which
was purchased in a simultaneous all cash transaction. Urstadt
Biddle Properties is the Managing Member of the newly formed entity
and will manage and lease the portfolio. The seller of the three
properties is a local multi-generational family group that
originally developed the properties. The jewel of the portfolio is
the High Ridge Shopping Center located on High Ridge Road, the main
access way to Stamford from the Merritt Parkway. The property has
an average daily traffic count of over 30,000 cars. Approximately
55,000 people live within 3 miles of the property with an average
household income of over $185,000. Stamford has emerged as an
important economic hub of Fairfield County and is a 24/7 city,
highlighted by impressive apartment growth totaling upwards of
3,600 units built since 2010, with an additional 5,000 units
planned. We are extremely pleased that we were able to acquire
another property in Stamford, and one that includes Trader Joe’s,
the leading specialty grocer in our marketplace. We have several
additional acquisitions in the pipeline that will hopefully allow
us to invest the remaining proceeds from the Pavilion sale by the
end of fiscal 2017.”
Urstadt Biddle Properties Inc. is a self-administered equity
real estate investment trust which owns or has equity interests in
80 properties containing approximately 5.0 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 189 consecutive quarters
of uninterrupted dividends to its shareholders since its inception
and has raised total dividends to its shareholders for the last 23
consecutive years.
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)
SIX MONTHS AND THREE MONTHS ENDED APRIL
30, 2017 AND 2016 RESULTS (UNAUDITED)
(in thousands, except per share data)
Six Months
Ended
Three Months
Ended
April 30,
April 30,
2017
2016
2017
2016
Revenues Base rents
$42,789 $41,570
$21,677 $21,498 Recoveries from tenants
14,226 12,865
7,153 6,493 Lease termination income
283 332
259 290 Other income
1,661
1,850 903 885 Total
Revenues
58,959 56,617
29,992 29,166 Operating
Expenses Property operating
10,646 9,740
5,498
4,973 Property taxes
9,585 9,148
4,737 4,525
Depreciation and amortization
12,764 11,347
6,183
5,659 General and administrative
4,667 4,753
2,212
2,291 Provision for tenant credit losses
360 608
282
369 Acquisition costs
- 129
- 49 Directors' fees and
expenses
166 165
83 82 Total Operating Expenses
38,188 35,890
18,995 17,948 Operating
Income 20,771 20,727
10,997 11,218
Non-Operating Income (Expense):
Interest expense
(6,516)
(6,520)
(3,259)
(3,249)
Equity in net income from unconsolidated joint ventures
1,039 920
525 537 Interest, dividends and other
investment income
369 101
196 50 Income Before Gain on
Sale of Properties 15,663 15,228
8,459 8,556 Gain
on sale of properties
19,460 -
19,460 - Net Income
35,123 15,228
27,919 8,556
Noncontrolling
interests: Net income attributable to noncontrolling interests
(469) (442)
(247) (217) Net income
attributable to Urstadt Biddle Properties Inc.
34,654 14,786
27,672 8,339 Preferred stock dividends
(7,141) (7,140)
(3,571) (3,570) Net
Income Applicable to Common and Class A Common Stockholders
$27,513 $7,646
$24,101 $4,769 Diluted
Earnings Per Share: Per Common Share:
$.65
$.20 $.57 $0.12 Per
Class A Common Share:
$.74 $.22
$.64 $0.14 Weighted
Average Number of Shares Outstanding (Diluted): Common and
Common Equivalent
8,966 8,821
9,019 8,906 Class A Common and
Class A Common Equivalent
29,473
26,224 29,507 26,274
Results of Operations
The following information summarizes the company's results of
operations for the six month and three month periods ended April
30, 2017 and 2016 (amounts in thousands):
Six Months Ended
April
30,
Change Attributable
to:
Properties Held Increase
% Property In Both Periods
Revenues
2017
2016
(decrease)
Change
Acquisitions/Sales
(Note 1)
Base rents
$42,789 $41,570 $1,219 2.9% $1,092 $127
Recoveries from tenants
14,226 12,865 1,361 10.6% 747 614
Other income
1,661 1,850 (189) -10.2% 92 (281)
Operating Expenses Property operating expenses
10,646
9,740 906 9.3% 277 629 Property taxes
9,585 9,148 437 4.8%
223 214 Depreciation and amortization
12,764 11,347 1,417
12.5% 413 1,004 General and administrative expenses
4,667
4,753 (86) -1.8% n/a n/a
Other Income/Expenses
Interest expense
6,516 6,520 (4) -0.1% 483 (487) Interest,
dividends and other investment income
369 101 268 265.3% n/a
n/a
Note 1 – Properties held in both periods includes only
properties owned for the entire periods of 2017 and 2016. All other
properties are included in the property acquisition/sales column.
There are no properties excluded from the analysis.
Three Months Ended
April
30,
Change Attributable
to:
Properties Held Increase
% Property In Both Periods
Revenues
2017
2016
(decrease)
Change
Acquisitions/Sales
(Note 2)
Base rents
$21,677 $21,498 $179 0.8% $143 $36 Recoveries
from tenants
7,153 6,493 660 10.2% 557 103 Other income
903 885 18 2.0% 86 (68)
Operating Expenses
Property operating expenses
5,498 4,973 525 10.6% 114 411
Property taxes
4,737 4,525 212 4.7% 63 149 Depreciation and
amortization
6,183 5,659 524 9.3% 96 428 General and
administrative expenses
2,212 2,291 (79) -3.4% n/a n/a
Other Income/Expenses Interest expense
3,259
3,249 10 0.3% 264 (254) Interest, dividends and other investment
income
196 50 146 292.0% n/a n/a
Note 2 – Properties held in both periods include only properties
owned for the entire periods of 2016 and 2017. All other properties
are included in the property acquisition/sales column. There are no
properties excluded from the analysis.
Revenues:
Base rents increased by 2.9% to $42.8 million for the six month
period ended April 30, 2017 as compared with $41.6 million in the
comparable period of 2016. Base rents increased by 0.8% to $21.7
million for the three month period ended April 30, 2017 as compared
with $21.5 million in the comparable period of 2016. The change in
base rent and the changes in other income statement line items
analyzed in the chart above were attributable to:
Property Acquisitions/Sales:
In the first half of fiscal 2017, the Company purchased three
properties totaling 88,200 square feet of GLA, invested in a joint
venture that owns three properties totaling 99,400 square feet,
whose operations we consolidate, and sold one property totaling
191,000 square feet. In fiscal 2016, the Company purchased two
properties totaling 99,000 square feet. These properties accounted
for all of the revenue and expense changes attributable to property
acquisitions and sales in the three and six month periods ended
April 30, 2017 when compared with the corresponding periods in
fiscal 2016.
Properties Held in Both
Periods:
Revenues
Base rents were relatively unchanged during the six month and
three month periods ended April 30, 2017 when compared with the
corresponding prior periods.
At April 30, 2017, the Company’s consolidated properties were
approximately 93.1% leased, a decrease of 0.2% from the end of
fiscal 2016. Overall property occupancy decreased to 92.6% at April
30, 2017 from 92.8% at the end of fiscal 2016.
In the six month and three month periods ended April 30, 2017,
recoveries from tenants for properties owned in both periods (which
represent reimbursements from tenants for operating expenses and
property taxes) increased by $614,000 and $103,000, respectively.
This increase was a result of an increase in both property
operating expenses and property tax expense in the consolidated
portfolio for properties owned in both the three months and six
months of fiscal 2017. The property operating expense increase in
both the three month and six month periods ended April 20, 2017
when compared with the same periods of fiscal 2016 was
predominantly related to an increase in snow removal costs at our
properties and the increase for property tax expense was related to
an increase in property tax assessments for properties owned in
both periods.
Expenses
In the six month and three month periods ended April 30, 2017,
property operating expenses increased by $629,000 and $411,000,
respectively, when compared with the corresponding prior periods,
predominantly as a result of an increase in snow removal costs at
our properties.
In the six month and three month periods ended April 30, 2017,
property taxes increased by $214,000 and $149,000, respectively,
when compared with the corresponding prior periods, as a result of
an increase in property tax assessments for properties owned in
both periods.
In the six month and three month periods ended April 30, 2017,
interest expense decreased by $487,000 and $254,000, respectively,
when compared with the corresponding prior periods as a result of
the repayment of the mortgage at our Bloomfield, NJ property after
the second quarter of fiscal 2016 and the reduction of mortgage
principal from normal amortization.
In the six month and three month periods ended April 30, 2017,
depreciation and amortization expense increased by $1.0 million and
$428,000, respectively, when compared with the corresponding prior
period, as a result of increased depreciation for tenant
improvements for new tenants occupying space and additional capital
improvements at several properties in the latter part of fiscal
2016 and first half of fiscal 2017.
Other Income and Expenses:
General and administrative expense was relatively unchanged in
the six month and three month periods ended April 30, 2017 when
compared to the corresponding prior periods, predominantly as a
result of a small reduction in restricted stock amortization
expense and professional fees offset by normal salary increases for
employees of the Company.
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 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.
URSTADT BIDDLE PROPERTIES INC. (NYSE:
UBA AND UBP)
SIX MONTHS AND THREE MONTHS ENDED APRIL
30, 2017 AND 2016
(in thousands, except per share data)
Reconciliation of Net Income Available
to Common and Class A Common Stockholders To Funds From
Operations:
Six Months EndedApril 30,
Three Months EndedApril 30,
2017
2016
2017
2016
Net Income Applicable to Common and Class A Common Stockholders
$27,513
$7,646
$24,101 $4,769 Real property depreciation
9,867 9,605
4,903 4,836 Amortization of tenant
improvements and allowances
2,244 1,453
918
676 Amortization of deferred leasing costs
605 250
338 130 Depreciation and amortization on
unconsolidated joint ventures
800
834
404 361 (Gain)/Loss on sale of asset
(19,460) (360)
(19,460) (20) Funds from
Operations Applicable to Common and Class A Common Stockholders
$21,569
$19,428
$11,204 $10,752
Funds from Operations (Diluted) Per Share: Common
$.51 $.51 $.26
$.28 Class A Common
$.58
$.57 $.30 $.31
Urstadt Biddle Properties Inc. (NYSE: UBA AND UBP)
Balance Sheet Highlights (in thousands)
April 30, October 31,
2017
2016
(Unaudited)
Assets Cash and Cash Equivalents
$15,484 $7,271 Real
Estate investments before accumulated depreciation
$1,058,042 $1,016,838
Investments in and advances to unconsolidated joint ventures
$38,289 $38,469 Mortgage
note receivable $13,500
$13,500 Total Assets
$992,670 $931,324
Liabilities Revolving credit line
$- $8,000 Mortgage notes
payable and other loans $284,329
$273,016 Total Liabilities
$307,352 $314,038
Redeemable Noncontrolling Interests
$71,199 $18,253
Preferred Stock $204,375
$204,375 Total Stockholders’ Equity
$614,119 $599,033
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version on businesswire.com: http://www.businesswire.com/news/home/20170608006057/en/
Urstadt Biddle Properties Inc.Willing L. Biddle, CEO orJohn T.
Hayes, CFO203-863-8200
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