For Immediate Release
Contact: James R. Moore, CFO or Willing L. Biddle, COO
Urstadt Biddle Properties Inc.
(203) 863-8200
Urstadt Biddle Properties Inc. Reports
Operating Results For Second Quarter And First Half of Fiscal 2006
GREENWICH, CONNECTICUT, June 8, 2006 - Urstadt Biddle Properties Inc. (NYSE:UBA and UBP), a real estate investment trust, today announced its second quarter and six months financial results for the period ended April 30, 2006.
Diluted funds from operations (“FFO”) for the quarter ended April 30, 2006 decreased to $7,104,000 or $0.26 per Common share and $0.29 per Class A Common share compared to $7,996,000 or $0.29 per Common share and $0.32 per Class A Common share in the second quarter of fiscal 2005. Net income applicable to Common and Class A Common stockholders for the quarter was $3,759,000 or $0.14 per diluted Common share and $0.15 per diluted Class A Common share compared to $4,826,000, or $0.18 per diluted Common share and $0.19 per diluted Class A Common share in last year’s second quarter.
For the first six months of fiscal 2006, diluted FFO amounted to $14,445,000 or $0.52 per Common share and $0.58 per Class A Common share compared to $15,771,000 or $0.57 per Common share and $0.62 per Class A Common share in fiscal 2005. Net income applicable to Common and Class A Common stockholders for the first six months of fiscal 2006 was $7,893,000 or $0.29 per diluted Common share and $0.32 per diluted Class A Common share compared to $15,112,000 or $0.55 per diluted Common share and $0.61 per diluted Class A Common share, for the same period last year. Net income in the six-month period ended April 30, 2005 included a gain on sale of property of $5,626,000.
Mr. Biddle commented that “This quarter’s operating results reflect a slightly lower occupancy level compared to a year ago and a flattening of rental revenue growth in 2006 in the core portfolio. At April 30, 2006, our core portfolio was 96.6% leased, a decrease of about 1% from year end caused by a slight increase in tenant vacancies during the first half of the year.” Mr. Biddle stated “We are encouraged though because we are either in discussions or negotiations to lease the majority of our currently vacant space.” Mr. Biddle also noted that lease renewals and new leases during this quarter were at higher rental rates than the current or expired rental rates. Mr. Biddle said that the quarter’s results also reflected the dilutive effect on earnings from lower yielding returns on the remaining proceeds from last year’s preferred stock sale. However, by the end of the current quarter all remaining proceeds had been invested in higher yielding real estate properties. Mr. Biddle continued “A significant portion of our growth is through property acquisitions. However, the acquisitions environment is very competitive and it is increasingly difficult to find acquisitions that meet our financial return objectives. During the quarter we acquired three properties totaling 47,300 square feet of space. We will continue to seek acquisitions that are accretive to our earnings.”
At their regular quarterly meeting, the Directors of Urstadt Biddle Properties Inc. declared regular quarterly dividends on the Company’s Class A Common Stock (UBA) and Common Stock (UBP). The dividends were declared in the amount of 22.5¢ for each share of Class A Common Stock and 20.25¢ for each share of Common Stock. The dividends were declared at the same rate as the previous quarter and are the 146th consecutive quarterly dividends declared since the Company began operating in 1969.
UBP is a self-administered equity real estate trust providing investors with a means of participating in ownership of income-producing properties with investment liquidity. UBP owns thirty-seven (37) properties containing 3.7 million square feet of space.
Non-GAAP Financial Measure
Funds 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, 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.
Urstadt Biddle Properties inc. (NYSE: UBA and UBP)
Six Months and Three Months Ended April 30, 2006 and 2005
(In thousands, except per share data)
(UNAUDITED)
| | | Six Months Ended | | Three Months Ended | |
| | | April 30, | | April 30, | |
| | | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
Revenues: | | | | | | | | | | | | | |
Base rents | | $ | 27,711 | | $ | 25,450 | | $ | 13,770 | | $ | 13,209 | |
| Recoveries from tenants | | | 9,104 | | | 8,710 | | | 4,564 | | | 4,607 | |
| Interest and other | | | 819 | | | 382 | | | 362 | | | 170 | |
| | | | 37,634 | | | 34,542 | | | 18,696 | | | 17,986 | |
Operating Expenses: | | | | | | | | | | | | | |
| Property operating | | | 6,606 | | | 5,869 | | | 3,382 | | | 3,303 | |
| Property taxes | | | 4,992 | | | 4,459 | | | 2,520 | | | 2,314 | |
| Interest | | | 4,244 | | | 4,322 | | | 2,115 | | | 2,269 | |
| Depreciation and amortization | | | 6,502 | | | 5,837 | | | 3,319 | | | 2,945 | |
| General and administrative expenses | | | 2,488 | | | 2,109 | | | 1,167 | | | 992 | |
| Directors’ fees and expenses | | | 144 | | | 127 | | | 52 | | | 59 | |
| | | | 24,976 | | | 22,723 | | | 12,555 | | | 11,882 | |
| | | | | | | | | | | | | | |
Operating Income before Minority Interests and Discontinued Operations | | | 12,658 | | | 11,819 | | | 6,141 | | | 6,104 | |
Minority Interests | | | (94 | ) | | (184 | ) | | (47 | ) | | (92 | ) |
Income from Continuing Operations | | | 12,564 | | | 11,635 | | | 6,094 | | | 6,012 | |
Discontinued Operations: | | | | | | | | | | | | | |
| Income from discontinued operations | | | - | | | 324 | | | - | | | 100 | |
| Gain on sale of property | | | - | | | 5,626 | | | - | | | - | |
Income from Discontinued Operations | | | - | | | 5,950 | | | - | | | 100 | |
Net Income | | | 12,564 | | | 17,585 | | | 6,094 | | | 6,112 | |
| Preferred Stock Dividends | | | (4,671 | ) | | (2,473 | ) | | (2,335 | ) | | (1,286 | ) |
| | | | | | | | | | | | | | |
Net Income Applicable to Common and Class A Common Stockholders | | $ | 7,893 | | $ | 15,112 | | $ | 3,759 | | $ | 4,826 | |
| | | | | | | | | | | | | | |
Diluted Earnings Per Share: | | | | | | | | | | | | | |
Per Common Share: | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 0.29 | | $ | 0.34 | | $ | 0.14 | | $ | 0.18 | |
| Income from discontinued operations | | | - | | $ | 0.21 | | | - | | | - | |
Net Income Applicable to Common Stockholders | | $ | 0.29 | | $ | 0.55 | | $ | 0.14 | | $ | 0.18 | |
| | | | | | | | | | | | | | |
Per Class A Common Share: | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 0.32 | | $ | 0.37 | | $ | 0.15 | | $ | 0.19 | |
| Income from discontinued operations | | | - | | $ | 0.24 | | | - | | | - | |
Net Income Applicable to Class A Common Stockholders | | $ | 0.32 | | $ | 0.61 | | $ | 0.15 | | $ | 0.19 | |
| | | | | | | | | | | | | | |
Dividends per share: | | | | | | | | | | | | | |
| Common | | $ | 0.405 | | $ | 0.40 | | $ | 0.2025 | | $ | 0.20 | |
| Class A Common | | $ | 0.450 | | $ | 0.44 | | $ | 0.2250 | | $ | 0.22 | |
| | | | | | | | | | | | | | |
Weighted Average Number of Shares Outstanding: | | | | | | | | | | | | | |
| Common and Common Equivalent | | | 7,168 | | | 7,020 | | | 7,187 | | | 7,039 | |
| Class A Common | | | 18,656 | | | 18,888 | | | 18,669 | | | 18,890 | |
Urstadt Biddle Properties inc. (NYSE: UBA and UBP)
Six Months and Three Months Ended April 30, 2006 and 2005
(In thousands, except per share data)
Reconciliation of Net Income Available to Common Stockholders
to Funds from Operations
| | | Six Months Ended | | Three Months Ended | |
| | | April 30, | | April 30, | |
| | | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
Net Income Applicable to Common and | | | | | | | | | | | | | |
Class A Common Stockholders | | $ | 7,893 | | $ | 15,112 | | $ | 3,759 | | $ | 4,826 | |
| | | | | | | | | | | | | | |
Plus: Real property depreciation | | | 5,010 | | | 4,338 | | | 2,535 | | | 2,235 | |
Amortization of tenant improvements and allowances | | | 1,149 | | | 1,202 | | | 637 | | | 593 | |
Amortization of deferred leasing costs | | | 299 | | | 297 | | | 126 | | | 117 | |
Minority interests | | | 94 | | | 184 | | | 47 | | | 92 | |
Depreciation and amortization on discontinued operations | | | - | | | 264 | | | - | | | 133 | |
Less: Gain on Sale of Property | | | - | | | (5,626 | ) | | - | | | - | |
| | | | | | | | | | | | | | |
Funds from Operations (Diluted) | | $ | 14,445 | | $ | 15,771 | | $ | 7,104 | | $ | 7,996 | |
| | | | | | | | | | | | | | |
Per Share: | | | | | | | | | | | | | |
Funds from Operations (Diluted): | | | | | | | | | | | | | |
Common | | $ | 0.52 | | $ | 0.57 | | $ | 0.26 | | $ | 0.29 | |
Class A Common | | $ | 0.58 | | $ | 0.62 | | $ | 0.29 | | $ | 0.32 | |
