For Immediate Release
Contact: Willing L. Biddle, President or
John T. Hayes, CFO
Urstadt Biddle Properties Inc.
(203) 863-8200
Urstadt Biddle Properties Inc. Reports First Quarter of 2009 Results
Greenwich, Connecticut, March 6, 2009 -- Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real estate investment trust, today reported its results for the first quarter ended January 31, 2009.
Diluted Funds from Operations (FFO) for the first quarter of fiscal 2009 was $7,901,000 or $0.32 per Class A Common share and $0.29 per Common share, compared to $7,975,000 or $0.32 per Class A Common share and $0.29 per Common share in last year’s first quarter.
Net income applicable to Class A Common and Common stockholders was $3,606,000 or $0.15 per diluted Class A Common share and $0.13 per diluted Common share in the first quarter of fiscal 2009 compared to $4,492,000 or $0.18 per diluted Class A Common share and $0.16 per diluted Common share in the same quarter last year.
Rental revenues from same properties were higher this quarter as a result of increased real estate tax expense recoveries compared to a year ago. Base rents increased slightly this quarter from higher rental rates on recent lease renewals and increases on in place leases offset by a decrease in the occupancy percentage in the first quarter of fiscal 2009. Recent property acquisitions also increased revenues this quarter by $890,000. At January 31, 2009 the percentage of the core properties gross leasable area that was leased amounted to 90.8%, a decrease of 3.70% from the fiscal year ending October 31, 2008.
Commenting on the quarter’s operating results, Willing L. Biddle, President and Chief Operating Officer of UBP, said, “We were disappointed to see the percentage of space leased at our properties decrease this quarter due primarily to the vacancy of two stores by Linens ‘n Things and one store by Borders Books. We remain encouraged by the level of interest expressed by retailers in our portfolio and are working hard to fill our vacancies. During the first quarter we leased or renewed 191,000 square feet of space at average base rent increases of 4%. We can not say when this recession will end; however, the company is in a strong position to get through this severe economic downturn. Although the shopping center industry is grappling with an extreme curtailment of credit availability and a drastic reduction in consumer spending, our Company’s historically conservative approach to financing provides us with a strong balance sheet and ample liquidity to meet our short and long term financing needs and to be in a position to capitalize on buying opportunities when they arise. We have no unfunded development projects and we believe that the two property level mortgages coming due this year can be refinanced or re-paid with available cash or draws from our existing revolving lines of credit. The Company has approximately $55 million available on its unsecured and secured lines of credit with The Bank of New York Mellon and Wells Fargo Bank N.A. which do not expire until 2011. Of the Company’s 43 properties, currently 33 are free and clear with no mortgage debt. We believe we will have opportunities to purchase properties in our target area from other property owners or their current lenders in accordance with our strategic plan.”
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.
(Table Follows)
Urstadt Biddle Properties Inc. (NYSE: UBA and UBP)
First Quarter 2009 results
(in thousands, except per share data)
| | | Three Months Ended | |
| | | January 31, | |
| | | 2009 | | | 2008 | |
| Revenues | | | | | | |
Base rents | | $ | 15,543 | | | $ | 14,742 | |
Recoveries from tenants | | | 5,489 | | | | 4,465 | |
Lease termination income | | | - | | | | 58 | |
Mortgage interest and other | | | 338 | | | | 166 | |
Total Revenues | | | 21,370 | | | | 19,431 | |
| | | | | | | | | |
| Operating Expenses | | | | | | | | |
Property operating | | | 3,421 | | | | 3,063 | |
Property taxes | | | 3,389 | | | | 2,825 | |
Depreciation and amortization | | | 4,355 | | | | 3,493 | |
General and administrative | | | 1,618 | | | | 1,484 | |
Directors' fees and expenses | | | 88 | | | | 75 | |
Total Operating Expenses | | | 12,871 | | | | 10,940 | |
| | | | | | | | | |
| Operating Income | | | 8,499 | | | | 8,491 | |
| Non-Operating Income (Expense): | | | | | | | | |
Interest expense | | | (1,542 | ) | | | (1,749 | ) |
Interest, dividends and other investment income | | | 37 | | | | 95 | |
| Minority interests | | | (115 | ) | | | (9 | ) |
| Net Income | | | 6,879 | | | | 6,828 | |
Preferred stock dividends | | | (3,273 | ) | | | (2,336 | ) |
| | | | | | | | | |
| Net Income Applicable to Common and Class A Common Stockholders | | $ | 3,606 | | | $ | 4,492 | |
| | | | | | | | | |
| Diluted Earnings Per Share: | | | | | | | | |
| Common: | | $ | .13 | | | $ | .16 | |
| Class A Common | | $ | .15 | | | $ | .18 | |
| | | | | | | | | |
| Dividends Per Share: | | | | | | | | |
Common | | $ | .2175 | | | $ | .2150 | |
Class A Common | | $ | .2400 | | | $ | .2375 | |
| | | | | | | | | |
| Weighted Average Number of Shares Outstanding (Diluted): | | | | | | | | |
| Common and Common Equivalent | | | 7,279 | | | | 7,227 | |
| Class A Common and Class A Common Equivalent | | | 17,995 | | | | 18,585 | |
Urstadt Biddle Properties Inc. (NYSE: UBA and UBP)
First Quarter 2009 results
(in thousands, except per share data)
| | | Three Months Ended | |
| | | January 31, | |
| | | 2009 | | | 2008 | |
| Reconciliation of Net Income Available to Common and Class A Common Stockholders To Funds From Operations: | | | | | | |
| | | | | | | |
| Net Income Applicable to Common and Class A Common Stockholders | | $ | 3,606 | | | $ | 4,492 | |
| | | | | | | | | |
| Plus: Real property depreciation | | | 2,830 | | | | 2,677 | |
| Amortization of tenant improvements and allowances | | | 1,163 | | | | 655 | |
| Amortization of deferred leasing costs | | | 302 | | | | 142 | |
| Minority interest | | | - | | | | 9 | |
| | | | | | | | | |
| Funds from Operations Applicable to Common and Class A Common Stockholders | | $ | 7,901 | | | $ | 7,975 | |
| | | | | | | | | |
| Funds from Operations (Diluted) Per Share: | | | | | | | | |
| Class A Common | | $ | .32 | | | $ | .32 | |
| Common | | $ | .29 | | | $ | .29 | |
| Balance Sheet Highlights | | | | | | |
| (in thousands) | | | | | | |
| | | January 31, | | | October 31, | |
| | | 2009 | | | 2008 | |
| | | (Unaudited) | | | | |
| Assets | | | | | | |
| Real Estate investments before accumulated depreciation | | $ | 565,806 | | | $ | 568,272 | |
| | | | | | | | | |
| Total Assets | | $ | 504,693 | | | $ | 506,117 | |
| | | | | | | | | |
| Liabilities | | | | | | | | |
| Revolving credit lines and mortgage notes payable | | $ | 109,578 | | | $ | 110,054 | |
| | | | | | | | | |
| Total liabilities | | $ | 120,928 | | | $ | 120,247 | |
| | | | | | | | | |
| Redeemable Preferred Stock | | $ | 96,203 | | | $ | 96,203 | |
| | | | | | | | | |
| Minority Interest | | $ | 9,370 | | | $ | 9,370 | |
| | | | | | | | | |
| Total Stockholders’ Equity | | $ | 278,192 | | | $ | 280,297 | |
