COLUMBUS, Ohio, July 22 /PRNewswire-FirstCall/ -- Glimcher Realty
Trust (NYSE:GRT) today announced financial results for the second
quarter ended June 30, 2009. A description and reconciliation of
non-GAAP financial measures to GAAP financial measures is contained
in a later section of this press release. References to per share
amounts are based on diluted common shares. Net loss to common
shareholders during the second quarter of 2009 was $1.3 million, or
$0.03 per share, as compared to net income of $1.3 million, or
$0.03 per share, in the second quarter of 2008. Funds From
Operations ("FFO") during the second quarter of 2009 was $18.1
million compared to $20.5 million in the second quarter of 2008. On
a per share basis, FFO during the second quarter of 2009 was $0.44
per share compared to $0.50 per share for the second quarter of
2008. "We continue to navigate through this difficult economic
environment with an experienced team and a sharp focus on execution
of our business plan," stated Michael P. Glimcher, Chairman of the
Board and CEO. "We have been encouraged by the relative stability
of our core mall portfolio and believe it is well positioned for
growth as the economy recovers." Summary of Financial Results
(unaudited, dollars in thousands except per share amounts) For
Quarter Ended For Six Months Ended June 30, June 30, 2009 2008 2009
2008 Revenues $75,648 $77,642 $153,971 $155,761 Net (loss) income
available to common shareholders $(1,328) $1,314 $(4,883) $1,053
(Loss) income per diluted common share $(0.03) $0.03 $(0.13) $0.03
FFO $18,146 $20,537 $36,860 $40,433 FFO per diluted common share
$0.44 $0.50 $0.90 $0.99 Highlights -- Total revenues were $75.6
million in the second quarter of 2009 compared to total revenues of
$77.6 million for the second quarter of 2008. The $2.0 million
decrease in total revenue was due to a $2.1 million reduction in
base rents primarily resulting from tenant bankruptcies in the
second half of 2008 and a $1.0 million reduction in lease
termination income. Partially offsetting these decreases was a $1.4
million increase in revenue from the sale of outparcels. -- Net
loss to common shareholders for the second quarter of 2009 was $1.3
million compared to net income of $1.3 million for the second
quarter of 2008. The $2.6 million decrease in net income was due to
a $2.1 million reduction in base rents primarily resulting from
tenant bankruptcies in the second half of 2008 and a $1.0 million
reduction in lease termination income. This was partially offset by
lower interest costs of $1.0 million. -- Net operating income for
comparable wholly-owned mall properties, ("Core Malls"), decreased
3.3% in the second quarter of 2009 from the second quarter of 2008.
Core Malls exclude the Company's malls held in joint ventures and
held-for-sale malls. -- Store average rents for the Core Malls were
$27.34 per square foot at June 30, 2009, an increase of 1% from
$27.13 per square foot at June 30, 2008. Re-leasing spreads for the
leases signed during the second quarter of 2009 were up 2% with
base rents averaging $27.03 per square foot. Re-leasing spreads
represent the percentage change in base rent for leases signed,
both new leases and renewals, to the base rent for comparative
tenants for those leases where the space was occupied in the
previous twenty-four months. -- Occupancy for stores in the Core
Malls at June 30, 2009 was 90.3% compared to 92.3% at June 30,
2008. -- Average store sales in the Core Malls decreased 5.7% to
$348 per square foot for the twelve months ending June 30, 2009
compared to $369 per square foot for the twelve months ending June
30, 2008, but were down less than 2% compared to the sales for the
twelve months ending March 31, 2009. Comparable mall store sales
for the Company's Core Malls decreased 5.8% for the twelve months
ending June 30, 2009 compared to the same period in 2008. Average
store sales represent retail sales for mall stores of 10,000 square
feet or less that reported sales in the most recent twelve month
period. Comparable sales compare only those stores with sales in
both respective twelve month periods ending June 30, 2009 and June
30, 2008. -- Debt-to-total-market capitalization at June 30, 2009
(including the Company's pro-rata share of joint venture debt) was
84.0% based on the common share closing price of $2.90 as compared
to 84.2% at December 31, 2008 based on the common share closing
price of $2.81. Debt with fixed rates represented approximately 83%
of the Company's total outstanding borrowings at June 30, 2009 as
compared to 87% as of December 31, 2008. The Company's total debt
decreased by $22.2 million during the first six months of 2009. --
As of June 30, 2009, the Company is in compliance with the
financial covenants under its credit facility. -- The Company has
commenced discussions with the participating banks in its credit
facility for an extension and modification of the credit facility.
A non-binding term sheet has been negotiated and executed with the
two lead banks on the credit facility. The Company expects to
execute the extension and modification in the third quarter. -- The
Company has formally commenced the marketing of interests in three
of its properties. Excess proceeds from the sale of all, or a
portion of, our interests in these assets will be used to reduce
the outstanding borrowings on the credit facility in support of our
efforts to reduce the Company's leverage and enhance its liquidity.
The three properties are: Lloyd Center in Portland, Oregon; Polaris
Towne Center in Columbus, Ohio; and WestShore Plaza in Tampa,
Florida. 2009 Outlook The Company estimates diluted net loss per
share to be in the range of $(0.19) to $(0.09) for the year ending
December 31, 2009 and expects diluted FFO per share to be in the
range of $1.85 to $1.95 for the year ending December 31, 2009. A
reconciliation of the range of estimated diluted net loss per share
to FFO per share for 2009 follows: Low End High End Estimated
diluted net loss per share $(0.19) $(0.09) Add: Real estate
depreciation and amortization* 2.08 2.08 Less: Gain on sales of
properties (0.04) (0.04) Estimated FFO per share $ 1.85 $ 1.95 *
wholly owned properties and pro rata share of joint ventures For
the third quarter of 2009, the Company estimates diluted net loss
per share to be in the range of $(0.11) to $(0.07) and FFO per
share to be in the range of $0.39 to $0.43. A reconciliation of the
range of estimated diluted net loss per share to estimated FFO per
share for the third quarter of 2009 follows: Low End High End
Estimated diluted net loss per share $(0.11) $(0.07) Add: Real
estate depreciation and amortization* 0.50 0.50 Estimated FFO per
share $ 0.39 $ 0.43 * wholly owned properties and pro rata share of
joint ventures The Company's guidance does not include the
potential impact from any asset sales or modifications of its
credit facility. Funds From Operations and Net Operating Income
This press release contains certain non-Generally Accepted
Accounting Principles (GAAP) financial measures and other terms.
The Company's definition and calculation of these non-GAAP
financial measures and other terms may differ from the definitions
and methodologies used by other REITs and, accordingly, may not be
comparable. The non-GAAP financial measures referred to above
should not be considered as alternatives to net income or other
GAAP measures as indicators of the Company's performance. Funds
From Operations is used by industry analysts and investors as a
supplemental operating performance measure of an equity real estate
investment trust ("REIT"). The Company uses FFO in addition to net
income to report operating results. FFO is an industry standard for
evaluating operating performance defined as net income (computed in
accordance with GAAP) excluding gains or losses from sales of
depreciable property, plus real estate depreciation and
amortization after adjustments for unconsolidated partnerships and
joint ventures. FFO does include impairment losses for properties
held for use and held for sale. Reconciliations of non-GAAP
financial measures to earnings used in this press release are
included in the above Outlook sections of the press release. Net
Operating Income (NOI) is used by industry analysts, investors and
Company management to measure operating performance of the
Company's properties. NOI represents total property revenues less
property operating and maintenance expenses. Accordingly, NOI
excludes certain expenses included in the determination of net
income such as property management and other indirect operating
expenses, interest expense and depreciation and amortization
expense. These items are excluded from NOI in order to provide
results that are more closely related to a property's results of
operations. In addition the Company's computation of same mall NOI
excludes property bad debt expense, straight-line adjustments of
minimum rents, amortization of above-below market intangibles,
termination income, and income from outparcel sales. We also adjust
for other miscellaneous items in order to enhance the comparability
of results from one period to another. Certain items, such as
interest expense, while included in FFO and net income, do not
affect the operating performance of a real estate asset and are
often incurred at the corporate level as opposed to the property
level. As a result, management uses only those income and expense
items that are incurred at the property level to evaluate a
property's performance. Real estate asset related depreciation and
amortization is excluded from NOI for the same reasons that it is
excluded from FFO pursuant to the National Association of Real
Estate Investment Trust's definition. Second Quarter Conference
Call Glimcher's second quarter investor conference call is
scheduled for 11 a.m. ET on Thursday, July 23, 2009. Those wishing
to join this call may do so by calling (866) 356.3095 Passcode:
72514987. This call also will be simulcast and available over the
Internet via the web site http://www.glimcher.com/ on July 23, 2009
and continue through August 6, 2009. Supplemental information about
the second quarter operating results is available on the Company's
website or at http://www.sec.gov/ or by calling (614) 887-5608.
About the Company Glimcher Realty Trust, a real estate investment
trust, is a recognized leader in the ownership, management,
acquisition and development of malls, which includes enclosed
regional malls and open-air lifestyle centers, as well as community
centers. At June 30, 2009, the Company's mall portfolio, including
assets held through the Company's strategic joint ventures,
consisted of 23 properties located in 14 states with gross leasable
area totaling approximately 20.1 million square feet. The community
center portfolio is comprised of four properties representing
approximately 800,000 square feet. Glimcher Realty Trust's common
shares are listed on the New York Stock Exchange under the symbol
"GRT." Glimcher Realty Trust's Series F and Series G preferred
shares are listed on the New York Stock Exchange under the symbols
"GRT-F" and "GRT-G," respectively. Glimcher Realty Trust is a
component of both the Russell 2000 Index, representing small cap
stocks, and the Russell 3000 Index, representing the broader
market. Forward Looking Statements This news release contains
certain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). Such statements are based on assumptions and expectations
which may not be realized and are inherently subject to risks and
uncertainties, many of which cannot be predicted with accuracy and
some of which might not even be anticipated. Future events and
actual results, financial and otherwise, may differ from the
results discussed in the forward-looking statements. Risks and
other factors that might cause differences, some of which could be
material, include, but are not limited to, changes in political,
economic or market conditions generally and the real estate and
capital markets specifically; impact of increased competition;
availability of capital and financing; tenant or joint venture
partner(s) bankruptcies; failure to increase mall store occupancy
and same-mall operating income; rejection of leases by tenants in
bankruptcy; financing and development risks; construction and
lease-up delay; cost overruns; the level and volatility of interest
rate; the rate of revenue increases as compared to expense
increases; the financial stability of tenants within the retail
industry; the failure of the Company to make additional investments
in regional mall properties and to redevelop properties; failure of
the Company to comply or remain in compliance with the covenants in
our debt instruments, including, but not limited to, the covenants
under our corporate credit facility; defaults by the Company under
its debt instruments; failure to complete proposed or anticipated
acquisitions; the failure to sell properties as anticipated and to
obtain estimated sale prices; the failure to upgrade the Company's
tenant mix; restrictions in current financing arrangements; the
failure to fully recover tenant obligations for common area
maintenance or insurance, taxes and other property expense; the
impact of changes to tax legislation and, generally, the Company's
tax position; the failure of the Company to qualify as a real
estate investment trust; the failure to refinance debt at favorable
terms and conditions; impairment charges with respect to properties
as well as additional impairment charges with respect to properties
for which there has been a prior impairment charge; loss of key
personnel; material changes in the Company's dividend rates on its
securities or the ability to pay its dividend on its common shares
or other securities; possible restrictions on the Company's ability
to operate or dispose of any partially-owned properties; failure to
achieve earnings/funds from operations targets or estimates;
conflicts of interest with existing joint venture partners; changes
in generally accepted accounting principles or interpretations
thereof; terrorist activities and international hostilities, which
may adversely affect the general economy, domestic and global
financial and capital markets, specific industries and us; the
unfavorable resolution of legal proceedings; the impact of future
acquisitions and divestitures; significant costs related to
environmental issues; the insolvency and failure to perform of
certain lending institutions participating in the Company's
construction loans and corporate credit facility; as well as other
risks listed from time to time in the Company's Form 10-K and in
the Company's other reports and statements filed with the
Securities and Exchange Commission. Visit Glimcher at:
http://www.glimcher.com/ GLIMCHER REALTY TRUST Operating Results
(in thousands, except per share amounts) (unaudited) Three Months
ended June 30, Statement of Operations 2009 2008 Total revenues
$75,648 $77,642 Total expenses (52,620) (52,811) Operating income
23,028 24,831 Interest expense, net (19,302) (20,318) Equity in
loss of unconsolidated real estate entities, net (726) (48) Income
from continuing operations 3,000 4,465 Discontinued operations:
Gain on sale of properties, net - 1,252 Loss from operations (76)
(44) Net income 2,924 5,673 Allocation to noncontrolling interest
107 - Less: Preferred stock dividends (4,359) (4,359) Net (loss)
income available to common shareholders $(1,328) $1,314
Reconciliation of Net (Loss) Income Per Per Available to Common
Shareholders Diluted Diluted to Funds From Operations Common Common
Share Share Net (loss) income available to common shareholders
$(1,328) $1,314 Allocation to noncontrolling interest (107) -
(1,435) $(0.03) 1,314 $0.03 Real estate depreciation and
amortization 18,260 0.44 19,364 0.47 Equity in loss of
unconsolidated real estate entities, net 726 0.02 48 0.00 Pro-rata
share of joint venture funds from operations 595 0.01 1,063 0.03
Gain on sale of properties, net - - (1,252) (0.03) Funds From
Operations $18,146 $0.44 $20,537 $0.50 Weighted average common
shares outstanding - basic 38,023 37,788 Weighted average common
shares outstanding - diluted (1) 41,009 40,790 Earnings per Share
Net loss to common shareholders before discontinued operations per
common share $(0.03) $- Discontinued operations per common share $-
$0.03 (Loss) income per common share $(0.03) $0.03 Net loss to
common shareholders before discontinued operations per diluted
common share $(0.03) $- Discontinued operations per diluted common
share $- $0.03 (Loss) income per diluted common share $(0.03) $0.03
Funds from operations per diluted common share $0.44 $0.50 (1) FFO
per share in 2009 has been calculated using 41,145 common shares,
which includes the common stock equivalents. GLIMCHER REALTY TRUST
Operating Results (in thousands, except per share amounts)
(unaudited) Six Months ended June 30, Statement of Operations 2009
2008 Total revenues (1) $153,971 $155,761 Total expenses (110,296)
(105,667) Operating income 43,675 50,094 Interest expense, net
(38,185) (41,244) Equity in (loss) income of unconsolidated real
estate entities, net (1,083) 155 Income from continuing operations
4,407 9,005 Discontinued operations: Impairment loss, net (183) -
Gain on sale of properties, net - 1,252 Loss from operations (777)
(486) Net income 3,447 9,771 Allocation to noncontrolling interest
388 - Less: Preferred stock dividends (8,718) (8,718) Net (loss)
income available to common shareholders $(4,883) $1,053
Reconciliation of Net (Loss) Income Per Per Available to Common
Shareholders Diluted Diluted to Funds From Operations Common Common
Share Share Net (loss) income available to common shareholders
$(4,883) $1,053 Allocation to noncontrolling interest (388) -
(5,271) $(0.13) 1,053 $0.03 Real estate depreciation and
amortization 40,786 $1.00 38,452 $0.93 Equity in loss (income) of
unconsolidated entities, net 1,083 $0.03 (155) $(0.00) Pro-rata
share of joint venture funds from operations 1,744 $0.04 2,335
$0.06 Gain on sale of properties (1,482) $(0.04) (1,252) $(0.03)
Funds From Operations $36,860 $0.90 $40,433 $0.99 Weighted average
common shares outstanding - basic 37,944 37,749 Weighted average
common shares outstanding - diluted (2) 40,930 40,746 Earnings per
Share Net (loss) income available to common shareholders before
discontinued operations per common share $(0.11) $0.01 Discontinued
operations per common share $(0.02) $0.02 (Loss) income per common
share $(0.13) $0.03 Net (loss) income available to common
shareholders before discontinued operations per diluted common
share $(0.11) $0.01 Discontinued operations per diluted common
share $(0.02) $0.02 (Loss) income per diluted common share $(0.13)
$0.03 Funds from operations per diluted common share $0.90 $0.99
(1) Includes a $1.482 million gain on sale of depreciable real
estate for the six months ended June 30, 2009. (2) FFO per share in
2009 has been calculated using 40,997 common shares, which includes
the common stock equivalents. GLIMCHER REALTY TRUST Selected
Balance Sheet Information (in thousands, except percentages and
base rents) June 30, December 31, 2009 2008 Investment in real
estate, net $1,723,949 $1,761,033 Total assets $1,829,684
$1,876,313 Mortgage notes and other notes payable $1,637,762
$1,659,953 Debt / Market capitalization 83.3% 83.6% Debt / Market
capitalization including pro- rata share of joint ventures 84.0%
84.2% June 30, June 30, 2009 2008 Occupancy: Core Malls (1): Mall
Anchors 93.1% 97.3% Mall Stores 90.3% 92.3% Total Consolidated Mall
Portfolio 92.1% 95.5% Malls including Joint Ventures (2): Mall
Anchors 93.7% 97.4% Mall Stores 90.3% 91.9% Total Mall Portfolio
92.4% 95.4% Average Base Rents: Core Malls (1): Mall Anchors $6.17
$6.27 Mall Stores $27.34 $27.13 Malls including Joint Ventures (2):
Mall Anchors $6.52 $6.66 Mall Stores $26.96 $26.87 (1) Excludes
mall properties held for sale and the company's joint venture
malls. (2) Excludes mall properties held for sale. DATASOURCE:
Glimcher Realty Trust CONTACT: Mark E. Yale, Executive V.P., CFO,
+1-614-887-5610, , Lisa A. Indest, V.P., Finance and Accounting,
+1-614-887-5844, Web Site: http://www.glimcher.com/
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