..0For Immediate Release
Contact: James R. Moore, CFO or Willing L. Biddle, President
Urstadt Biddle Properties Inc.
(203) 863-8200
URSTADT BIDDLE PROPERTIES INC. REPORTS FOURTH QUARTER
AND FISCAL 2004 OPERATING RESULTS
ANNOUNCES 11TH CONSECUTIVE ANNUAL DIVIDEND INCREASE
GREENWICH, CONNECTICUT, December 15, 2004 ...Urstadt Biddle Properties Inc. (UBA
and UBP) today announced its fourth quarter and full year financial results for
the fiscal year ended October 31, 2004.
Net income applicable to Common and Class A Common Stockholders was $18.6
million or $0.76 per diluted Class A Common share and $0.69 per diluted Common
share in 2004 compared to $17.6 million or $0.73 per diluted Class A Common
share and $0.66 per diluted Common share a year ago. Income from continuing
operations was $22.9 million in fiscal 2004 compared to $19.8 million a year
earlier. For the three months ended October 31, 2004, net income applicable to
Class A Common and Common shareholders was $4,649,000 or $0.19 per diluted Class
A Common share and $0.17 per diluted Common share compared to $4,656,000 or
$0.19 per diluted Class A Common share and $0.17 per Common share in fiscal
2003.
Diluted funds from operations (FFO), the primary indicator of operating
performance, increased to $30.2 million this year from $28.3 million in fiscal
2003. On a diluted per share basis, FFO increased to $1.21 per Class A Common
share and $1.09 per Common share in fiscal 2004 compared to $1.15 per Class A
Common share and $1.04 per Common share last year. For the quarter ended October
31, 2004, FFO increased to $7,666,000 or $.30 per Class A Common share and $.28
per Common share compared to $7,537,000 or $.30 per Class A Common share and
$.28 per Common share in last year's fourth quarter.
Rental income from properties in fiscal 2004 increased 9.4% to $63.5 million
from $58.0 million last year. The increase in revenues was the result of recent
property acquisitions, increased leasing at the Company's core properties and
higher recoveries of operating expenses.
Commenting on 2004's operating results, Willing Biddle, President and COO said,
"Our core properties performed well this year and given the strong fundamentals
of our core markets, together with our conservative balance sheet, we are
well-positioned to continue generating solid growth in 2005. Capitalizing on the
strong demand for space at our properties, we continued to increase rental rates
and overall property operating income in 2004." "In terms of property
acquisitions, Mr. Biddle noted that, "Competition for quality grocery-anchored
properties remains high; however, we continue to seek properties that we expect
to enhance our operating results. We are currently in discussions with several
owners to acquire property in fiscal 2005."
LEASING
At the end of the year, the Company's core properties were 99% leased, an
increase of nearly 2% over last year. During the year, the Company completed new
and renewal leases for 284,000 square feet of retail space.
DIVIDEND INCREASE
The Directors of the Company approved increases for the eleventh consecutive
year in the dividend rates on shares of UBP's Class A Common Stock and Common
Stock. The quarterly dividend rates were increased to 22(cents)for each share of
Class A Common Stock and 20(cents)for each share of Common Stock. The dividends
are payable January 17, 2005 to stockholders of record on January 5, 2005.
ACQUISITIONS AND SALES
Despite increased competition by buyers of retail properties in its target
areas, the Company acquired a portfolio of four retail properties totaling
38,000 square feet of leasable space at a cost of $11 million, including the
assumption of approximately $4.7 million in mortgage debt.
Shortly after the close of the Company's fiscal year, the Company announced that
it sold its Farmingdale, New York property for $9.75 million and will report a
gain of approximately $5.7 million from the sale in the first fiscal quarter of
2005.
NON-GAAP FINANCIAL MEASURE
FUNDS FROM OPERATIONS ("FFO")
The Company considers FFO to be an additional financial measure of operating
performance of an equity REIT. The Company reports FFO in addition to net income
applicable to common shareholders and net cash provided by operating activities.
Although FFO is a non-GAAP financial measure, the Company believes it provides
useful information to shareholders, potential investors and management because
it primarily excludes the assumption that the value of real estate assets
diminishes predictably over time and industry analysts have accepted it as a
performance measure. 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. The Company computes FFO in accordance
with standards established by the National Association of Real Estate investment
Trusts ("NAREIT"). FFO is defined by NAREIT as net income or loss, excluding
gains (or losses) from debt restructuring and sales of properties plus
depreciation and amortization, and after adjustments for unconsolidated joint
ventures. FFO does not represent cash generated 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.
UBP is a self-administered equity real estate investment trust providing
investors with a means of participating in ownership of income-producing
properties with investment liquidity. UBP owns thirty-three (33) properties
containing 3.4 million square feet of space.
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)
FISCAL YEAR AND FOURTH QUARTER 2004 RESULTS
(in thousands, except per share data)
Fiscal Year Ended Three Months Ended
October 31 October 31
---------- ----------
2004 2003 2004 2003
---- ---- ---- ----
Revenues
Operating Leases $63,514 $58,039 $15,943 $15,669
Lease termination income 577 80 35 80
Interest and other 825 1,034 243 201
------ ------ ------ ------
64,916 59,153 16,221 15,950
------ ------ ------ ------
Operating Expenses
Property Expenses 18,765 17,324 4,469 4,655
Interest 8,113 8,094 2,049 2,011
Depreciation and amortization 11,094 10,231 2,886 2,751
General and administrative expenses 3,623 3,339 866 739
------ ------ ------ ------
41,595 38,988 10,270 10,156
------ ------ ------ ------
Operating Income 23,321 20,165 5,951 5,794
Minority Interests (367) (365) (92) (91)
------ ------ ----- -----
Income from Continuing Operations 22,954 19,800 5,859 5,703
Income (loss) from Discontinued Operations 361 570 (22) 141
------ ------ ------ -----
Net Income 23,315 20,370 5,837 5,844
Preferred Stock Dividends (4,749) (2,794) (1,188) (1,188)
------- ------- ------- ------
Net Income Applicable to Common and Class A
Common Stockholders $18,566 $17,576 $4,649 $4,656
======= ======= ====== ======
Diluted Earnings Per Share:
Per Common Share:
Income from continuing operations $ .68 $ .64 $ .17 $ .17
Discontinued operations $ .01 $ .02 $ - $ -
------ ------ ---- -----
Net Income Applicable to Common Stockholders $ .69 $ .66 $ .17 $ .17
====== ======= ===== =====
Per Class A Common Share:
Income from continuing operations $ .75 $ .71 $. 19 $ .18
Discontinued operations $ .01 $ .02 $ - $ .01
------ ------ ----- -----
Net Income Applicable to Class A Common Stockholders $ .76 $ .73 $ .19 $ .19
====== ====== ===== =====
Dividends Per Share:
Common $ .78 $ .76 $ .195 $ .19
===== ===== ====== =====
Class A Common $ .86 $ .84 $ .215 $ .21
===== ===== ====== =====
Weighted Average No. of Shares Outstanding:
Common and Common Equivalent 6,820 6,566 6,930 6,613
====== ====== ====== ======
Class A Common & Class A Common Equivalent 18,836 18,720 18,864 18,758
====== ====== ====== ======
URSTADT BIDDLE PROPERTIES INC. (NYSE: UBA AND UBP)
FISCAL YEAR AND FOURTH QUARTER 2004 RESULTS
(in thousands, except per share data)
Fiscal Year Ended Three Months Ended
October 31 October 31
---------- ----------
2004 2003 2004 2003
---- ---- ---- ----
Reconciliation of Net Income Applicable to Common and
Class A Common Stockholders to Funds from Operations
Net Income Applicable to Common and Class A Common Stockholders $18,566 $17,576 $4,649 $4,656
Plus: Real property depreciation 8,547 7,831 2,175 2,098
Amortization of tenant improvements and allowances 2,175 2,088 603 575
Amortization of deferred leasing costs 525 469 147 117
Minority Interest 367 365 92 91
------- ------- ------ ------
Funds from Operations Applicable to Common and Class A
Common Stockholders (Diluted) $30,180 $28,329 $7,666 $7,537
======= ======= ====== ======
Funds from Operations (Diluted) Per Share:
Common $1.09 $1.04 $.28 $.28
===== ===== ==== ====
Class A Common $1.21 $1.15 $.30 $.30
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