-- Core mall store occupancy at September 30, 2009 of 92%, an
improvement of 160 bps from June 30, 2009 -- Company raised
approximately $110 million in net proceeds from secondary equity
offering -- Company has addressed all 2009 mortgage debt maturities
COLUMBUS, Ohio, Oct. 29 /PRNewswire-FirstCall/ -- Glimcher Realty
Trust (NYSE:GRT) today announced financial results for the third
quarter ended September 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 third quarter of 2009 was $2.4
million, or $0.06 per share, as compared to net loss of $3.4
million, or $0.09 per share, in the third quarter of 2008. Funds
From Operations ("FFO") during the third quarter of 2009 was $17.5
million compared to $18.8 million in the third quarter of 2008. On
a per share basis, FFO during the third quarter of 2009 was $0.40
per share compared to $0.46 per share for the third quarter of
2008. "We are pleased with both the stability of our core mall
portfolio and the significant progress made during the third
quarter to enhance our liquidity and balance sheet position,"
stated Michael P. Glimcher, Chairman of the Board and CEO. "In
September, we successfully completed a secondary equity offering
raising approximately $110 million of net proceeds and have now
addressed all of our 2009 mortgage debt maturities," added Mr.
Glimcher. Summary of Financial Results (unaudited, dollars in
thousands except per share amounts) For Quarter Ended For Nine
Months Ended September 30, September 30, --------------
------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenues
$74,568 $81,419 $228,539 $237,180 Net loss to common shareholders
$(2,435) $(3,444) $(7,318) $(2,391) Loss per diluted common share
$(0.06) $(0.09) $(0.19) $(0.06) FFO $17,462 $18,762 $54,322 $59,195
FFO per diluted common share $0.40 $0.46 $1.29 $1.45 ----- -----
----- ----- Third Quarter Earnings Highlights -- Total revenues
were $74.6 million in the third quarter of 2009 compared to total
revenues of $81.4 million for the third quarter of 2008. The $6.8
million decrease in total revenue was due to a $5.0 million
reduction in revenue from the sale of outparcels and a $1.8 million
reduction in base rents primarily resulting from tenant
bankruptcies, store closures and rent concessions made in the last
twelve months. -- Net loss to common shareholders for the third
quarter of 2009 was $2.4 million compared to net loss of $3.4
million for the third quarter of 2008. The $1.0 million decrease in
net loss was due to a $0.8 million reduction in operating losses
from properties held for sale and lower interest costs. -- Net
operating income for comparable wholly-owned mall properties ("Core
Malls") decreased 4.2% in the third quarter of 2009 from the third
quarter of 2008. Core Malls exclude the Company's malls held in
joint ventures. -- Store average rents for the Core Malls were
$27.21 per square foot ("psf") at September 30, 2009, an increase
from $27.13 psf at September 30, 2008. Re-leasing spreads for the
leases signed during the third quarter of 2009 were up 7% with base
rents averaging $31.68 psf. 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 September 30,
2009 was 91.9% compared to 93.1% at September 30, 2008. -- Average
store sales in the Core Malls decreased 5.4% to $349 psf for the
twelve months ending September 30, 2009 compared to $369 psf for
the twelve months ending September 30, 2008, but increased
sequentially compared to the sales for the twelve months ending
June 30, 2009 of $348 psf. Comparable mall store sales for the
Company's Core Malls decreased 6.8% for the twelve months ending
September 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 September 30, 2009 and
September 30, 2008. Update on liquidity and capital resources --
Debt-to-total-market capitalization at September 30, 2009
(including the Company's pro-rata share of joint venture debt) was
78.1% based on the common share closing price of $3.67 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
83.9% of the Company's total outstanding borrowings at September
30, 2009 as compared to 86.6% as of December 31, 2008. The
Company's total consolidated debt decreased by $73.8 million during
the first nine months of 2009. -- The Company issued 30,666,667
shares of common stock in September 2009, raising net proceeds of
approximately $110 million. -- The Company conveyed its interest in
Eastland Mall in Charlotte, North Carolina to the lender during
September 2009. -- As of September 30, 2009, the Company is in
compliance with the financial covenants under its credit facility.
-- During the third quarter, the Company received non-binding
commitments from all of the participating banks eligible to provide
a commitment to extend the credit facility's maturity date through
December 2011 and modify its terms. As of September 30, 2009, one
of the commitments has expired and one additional bank, previously
ineligible to provide a commitment due to a default of its funding
obligations, has cured its default and is now eligible to provide a
commitment, but has yet to do so. The Company continues to work
with all of the participating banks in its credit facility for an
extension and modification of the credit facility and expects to
execute the extension and modification late in the fourth quarter
of 2009. -- The current maturity date of the Company's Credit
Facility is December of 2009 and the Credit Facility provides for a
one year extension option. On October 2, 2009, the Company notified
the Credit Facility's administrative agent of its intention to
exercise the option to extend the maturity date to December 2010,
providing ample time to execute the further extension and
modification. -- The Company continues its effort in the marketing
of interests in three of its properties with a goal of raising net
proceeds of approximately $50 million. Excess proceeds from the
sale of all, or a portion of, the Company's 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 has
revised guidance to reflect the additional shares issued in
connection with its recent secondary offering. The Company
estimates diluted net loss per share to be in the range of $(0.15)
to $(0.08) for the year ending December 31, 2009 and expects
diluted FFO per share to be in the range of $1.53 to $1.60 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 $(0.15) $(0.08) Add: Real estate depreciation and
amortization* 1.70 1.70 Less: Gain on sales of properties (0.02)
(0.02) ------ ------ Estimated FFO per share $ 1.53 $1.60 ======
====== * wholly owned properties and pro rata share of joint
ventures For the fourth quarter of 2009, the Company estimates
diluted net income per share to be in the range of $0.01 to $0.08
and FFO per share to be in the range of $0.28 to $0.35. A
reconciliation of the range of estimated diluted net income per
share to estimated FFO per share for the fourth quarter of 2009
follows: Low End High End ------- -------- Estimated diluted net
income per share $0.01 $0.08 Add: Real estate depreciation and
amortization* 0.27 0.27 ------ ------ Estimated FFO per share $
0.28 $ 0.35 ====== ====== * wholly owned properties and pro rata
share of joint ventures The Company's guidance assumes closing on
the modification of its credit facility late in the fourth quarter
of 2009, but does not include any impact from potential sales of
interests in assets to a joint venture or outright sales of assets.
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. Third
Quarter Conference Call Glimcher's third quarter investor
conference call is scheduled for 10 a.m. ET on Friday, October 30,
2009. Those wishing to join this call may do so by calling (866)
783.2146, passcode 45198197. This call also will be simulcast and
available over the Internet via the web site
http://www.glimcher.com/ on October 30, 2009 and continue through
November 13, 2009. Supplemental information about the third quarter
operating results is available on the Company's website or at
http://www.sec.gov/ or by calling (614) 887-5605. 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
September 30, 2009, the Company's mall portfolio, including assets
held through the Company's strategic joint ventures, consisted of
22 mall properties located in 13 states with gross leasable area
totaling approximately 19.1 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. Such statements
are based on assumptions and expectations that may not be realized
and are inherently subject to risks and uncertainties, many of
which cannot be predicted with accuracy. 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, economic and market
conditions, tenant bankruptcies, bankruptcies of JV partners,
rejection of leases by tenants in bankruptcy, financing and
development risks, construction and lease-up delays, cost overruns,
the level and volatility of interest rates, the rate of revenue
increases versus 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
redevelopment of properties, the failure to acquire properties as
and when anticipated, the failure to fully recover tenant
obligations for CAM, taxes and other property expenses, the failure
of the Company to complete the amendment to its corporate credit
facility, failure to comply or remain in compliance with covenants
in our debt instruments, failure of the Company to qualify as real
estate investment trust, termination of existing JV arrangements,
conflicts of interest with our existing JV partners, the failure to
sell mall and community centers and the failure to sell such
properties when anticipated, the failure to achieve estimated sales
prices and proceeds from the sale of malls, increases in impairment
charges, additional impairment charges, as well as other risks
listed from time to time in the Company's reports filed with the
Securities and Exchange Commission or otherwise publicly
disseminated by the Company. Visit Glimcher at:
http://www.glimcher.com/ GLIMCHER REALTY TRUST Operating Results
(in thousands, except per share amounts) (unaudited) Three Months
ended September 30, ------------------ Statement of Operations 2009
2008 ----------------------- ---- ---- Total revenues $74,568
$81,419 Total expenses (51,846) (58,848) ------- ------- Operating
income 22,722 22,571 Interest expense, net (19,874) (20,461) Equity
in loss of unconsolidated real estate entities, net (759) (299)
---- ---- Income from continuing operations 2,089 1,811
Discontinued operations: Loss on disposition of property (288) -
Loss from operations (67) (895) --- ---- Net income 1,734 916
Allocation to noncontrolling interest 191 - Less: Preferred stock
dividends (4,360) (4,360) ------ ------ Net loss to common
shareholders $(2,435) $(3,444) ======= ======= Reconciliation of
Net Loss to Common --------------------- Per Diluted Per Diluted
Shareholders to Funds From Common Common Operations Share Share
-------------------------- ------- ------ Net loss to common
shareholders $(2,435) $(3,444) Allocation to noncontrolling
interest (191) - ---- ----- (2,626) $(0.06) (3,444) $(0.09) Real
estate depreciation and amortization 18,515 0.42 20,677 0.51 Equity
in loss of unconsolidated real estate entities, net 759 0.02 299
0.01 Pro-rata share of joint venture funds from operations 526 0.01
1,230 0.03 Loss on disposition of property 288 0.01 - - -------
----- ------- ----- Funds From Operations $17,462 $0.40 $18,762
$0.46 ======= ===== ======= ===== Weighted average common shares
outstanding - basic 41,038 37,795 Weighted average common shares
outstanding - diluted (1) 44,024 37,795 Earnings per Share
------------------ Net loss to common shareholders before
discontinued operations per common share $(0.05) $(0.07)
Discontinued operations per common share $(0.01) $(0.02) Loss per
common share $(0.06) $(0.09) Net loss to common shareholders before
discontinued operations per diluted common share $(0.05) $(0.07)
Discontinued operations per diluted common share $(0.01) $(0.02)
Loss per diluted common share $(0.06) $(0.09) Funds from operations
per diluted common share $0.40 $0.46 (1) FFO per share in 2009 and
2008 has been calculated using 44,053 and 40,783 common shares
respectively, which includes common stock equivalents. GLIMCHER
REALTY TRUST Operating Results (in thousands, except per share
amounts) (unaudited) Nine Months ended September 30,
------------------------------- Statement of Operations 2009 2008
----------------------- ---- ---- Total revenues (1) $228,539
$237,180 Total expenses (162,208) (164,521) -------- --------
Operating income 66,331 72,659 Interest expense, net (58,059)
(61,186) Equity in loss of unconsolidated real estate entities, net
(1,842) (144) ------ ---- Income from continuing operations 6,430
11,329 Discontinued operations: Impairment loss, net (183) - (Loss)
gain on disposition of properties, net (288) 1,252 Loss from
operations (778) (1,894) ---- ------ Net income 5,181 10,687
Allocation to noncontrolling interest 579 - Less: Preferred stock
dividends (13,078) (13,078) ------- ------- Net loss to common
shareholders $(7,318) $(2,391) ======= ======= Reconciliation of
Net Loss to Common Shareholders ----------------------------- Per
Diluted Per Diluted Common Common to Funds From Operations Share
Share ------------------------ -------- ------- Net loss to common
shareholders $(7,318) $(2,391) Allocation to noncontrolling
interest (579) - ---- ----- (7,897) $(0.19) (2,391) $(0.06) Real
estate depreciation and amortization 59,301 1.41 59,129 1.45 Equity
in loss of unconsolidated real estate entities, net 1,842 0.04 144
0.00 Pro-rata share of joint venture funds from operations 2,270
0.05 3,565 0.09 Gain on disposition of properties, net (1,194)
(0.02) (1,252) (0.03) ------ ----- ------ ----- Funds From
Operations $54,322 $1.29 $59,195 $1.45 ======= ===== ======= =====
Weighted average common shares outstanding - basic 38,986 37,765
Weighted average common shares outstanding - diluted (2) 41,972
37,765 Earnings per Share ------------------ Net loss to common
shareholders before discontinued operations per common share
$(0.16) $(0.05) Discontinued operations per common share $(0.03)
$(0.02) Loss per common share $(0.19) $(0.06) Net loss to common
shareholders before discontinued operations per diluted common
share $(0.16) $(0.05) Discontinued operations per diluted common
share $(0.03) $(0.02) Loss per diluted common share $(0.19) $(0.06)
Funds from operations per diluted common share $1.29 $1.45 (1)
Includes a $1.482 million gain on sale of depreciable real estate
for the nine months ended September 30, 2009. (2) FFO per share in
2009 and 2008 has been calculated using 41,989 and 40,757 common
shares respectively, which includes common stock equivalents.
GLIMCHER REALTY TRUST Selected Balance Sheet Information (in
thousands, except percentages and base rents) September 30,
December 31, 2009 2008 ---- ---- Investment in real estate, net
$1,678,785 $1,761,033 Total assets $1,881,137 $1,876,313 Mortgage
notes and other notes payable $1,586,166 $1,659,953 Debt / Market
capitalization 77.0% 83.6% Debt / Market capitalization including
pro-rata share of joint ventures 78.1% 84.2% September 30,
September 30, 2009 2008 ---- ---- Occupancy: ------------ Core
Malls (1): --------------- Mall Anchors 93.1% 98.6% Mall Stores
91.9% 93.1% Total Consolidated Mall Portfolio 92.6% 96.6% Malls
including Joint Ventures (2): -----------------------------------
Mall Anchors 93.7% 98.2% Mall Stores 91.5% 92.6% Total Mall
Portfolio 92.9% 96.2% Average Base Rents: ---------------------
Core Malls (1): --------------- Mall Anchors $6.02 $6.05 Mall
Stores $27.21 $27.13 Malls including Joint Ventures (2):
----------------------------------- Mall Anchors $6.36 $6.38 Mall
Stores $26.86 $26.85 (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, , or Lisa A. Indest,
V.P., Finance and Accounting, +1-614-887-5844, , both of Glimcher
Realty Trust Web Site: http://www.glimcher.com/
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