For Immediate Release
Exhibit 99.1
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 THIRD QUARTER OF FISCAL 2005
GREENWICH, CONNECTICUT, September 12, 2005 - Urstadt Biddle Properties
Inc. (NYSE:UBA and UBP), a real estate investment trust, today announced its
financial results for the three months and nine months ended July 31, 2005.
Diluted funds from operations ("FFO") for the quarter ended July 31, 2005
amounted to $6,952,000 or $0.25 per Common share and $0.27 per Class A Common
share compared to $7,074,000 or $0.26 per Common share and $.28 per Class A
Common share in the third quarter of fiscal 2004. Net income applicable to
Common and Class A Common stockholders for the quarter was $5,086,000 or $0.19
per diluted Common share and $0.20 per diluted Class A Common share compared to
$4,154,000, or $0.15 per diluted Common share and $0.17 per diluted Class A
Common share in the corresponding three month period last year. Net income in
the three-month period ended July 31, 2005 included a gain on sale of property
of $1,397,000.
For the first nine months of fiscal 2005, diluted FFO increased to $22,723,000
or $0.82 per Common share and $0.90 per Class A Common share compared to
$22,514,000 or $0.82 per Common share and $0.90 per Class A Common share in
fiscal 2004. Net income applicable to Common and Class A Common stockholders for
the first nine months of fiscal 2005 was $20,198,000 or $0.74 per diluted Common
share and $0.81 per diluted Class A Common share compared to $13,917,000 or
$0.52 per diluted Common share and $0.57 per diluted Class A Common share, for
the same period last year. Net income in the nine-month period ended July 31,
2005 includes gains on sale of properties of $7,031,000.
Commenting on the Company's operating results, Willing L. Biddle, President and
Chief Operating Officer of UBP said, "Leasing at our core property portfolio
this quarter slipped slightly to 97% -a decrease of 1% from year end. Recent
lease renewals and new leases generally were at higher rents than the expiring
rates and leasing at our core properties in the surrounding counties of
Fairfield, Connecticut and Westchester County, New York remain strong. We have
several significant capital projects under way which will result in increased
cash flow to us when the tenants take occupancy later in the year. " Mr. Biddle
continued, "We are focused on investing in high quality shopping centers in our
target region of Westchester and Putnam Counties in New York and Fairfield
County in Connecticut. In the third quarter, we completed the acquisition of the
200,000 sf Staples Plaza in Yorktown Heights, New York for $28.4 million and
made progress in disposing of the remaining non-core properties in our
portfolio. In June 2005, we reported the sale of the Southfield, Michigan office
building for $9.175 million and recorded a gain on the sale of approximately
$1.4 million this quarter. Third quarter results also were impacted by the
Company's recent sales of 7.5% Series D Preferred Stock." Mr. Biddle continued,
"Earlier this year, we sold 2,450,000 shares of a new issue of 7.5% Series D
Perpetual Preferred Stock for net proceeds of $59.4 million (after underwriting
fees and expenses). Proceeds from the stock sales were temporarily invested in
lower yielding short-term investments during the quarter pending reinvestment in
higher yielding property investments. We used a portion of the proceeds to repay
$19.5 million of bank revolving credit debt and $20 million to fund the cash
portion of the Staples Plaza acquisition. We expect to use the balance of the
stock proceeds for additional property acquisitions and/or capital improvements
to our core property portfolio."
Non-GAAP Financial Measure
Funds from Operations ("FFO")
A reconciliation of FFO to net income applicable to Common and Class A Common
stockholders (the GAAP measure the Company believes to be the most directly
comparable) is in the financial tables accompanying this press release.
The Company believes that FFO is an additional measure of operating performance
of an equity REIT. 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 the
real estate assets diminish predictably over time and industry analysts have
accepted it as a performance measure. 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, 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 trust providing investors with a
means of participating in ownership of income-producing properties with
investment liquidity. UBP has paid 142 quarters of uninterrupted dividends since
its inception in 1969.
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)
NINE MONTHS AND THREE MONTHS ENDED JULY 31, 2005
(In thousands, except per share data)
Nine months Ended Three Months Ended
July 31, July 31,
-------- -------
2005 2004 2005 2004
---- ---- ---- ----
Revenues:
Base rents $38,656 $34,990 $13,206 $11,758
Recoveries from tenants 12,392 10,314 3,682 3,015
Lease termination income 184 542 184 -
Interest and other 657 582 275 165
--- --- --- ---
51,889 46,428 17,347 14,938
------ ------ ------ ------
Operating Expenses:
Property operating 8,249 7,214 2,380 2,399
Property taxes 6,763 5,944 2,304 2,020
Interest 6,402 6,064 2,080 2,065
Depreciation and amortization 8,918 7,792 3,081 2,652
General and administrative 3,690 2,602 1,581 723
Directors' fees and expenses 205 155 78 50
--- --- --- ---
4,227 29,771 11,504 9,909
----- ------ ------ -----
Operating Income 17,662 16,657 5,843 5,029
Minority Interests (291) (275) (107) (92)
--------- --- ----- -- ----- --- ----
Income from Continuing Operations 17,371 16,382 5,736 4,937
Discontinued Operations:
Income from discontinued operations 469 1,096 153 404
Gain on sales of properties 7,031 - 1,397 -
----- ----- - ----- ------ -
Income from Discontinued Operations 7,500 1,096 1,550 404
---- ----- ----- ---
Net Income 24,871 17,478 7,286 5,341
Preferred Stock Dividends (4,673) (3,561) (2,200) (1,187)
------- ------- ------- -------
Net Income Applicable to Common and Class A Common Stockholders $20,198 $13,917 $5,086 $4,154
======= ======= ====== ======
Basic Earnings per Share:
Per Common Share:
Income from continuing operations $.48 $.49 $.13 $.14
Income from discontinued operations $.28 $.04 $.06 $.02
---- ---- ---- ----
Net Income Applicable to Common Stockholders $.76 $.53 $.19 $.16
==== ==== ==== ====
Per Class A Common Share:
Income from continuing operations $.52 $.53 $.15 $.15
Income from discontinued operations $.31 $.05 $.06 $.02
---- ---- ---- ----
Net Income Applicable Class A Common Stockholders $.83 $.58 $.21 $.17
==== ==== ==== ====
Diluted Earnings Per Share:
Per Common Share:
Income from continuing operations $.47 $.47 $.13 $.13
Income from discontinued operations $.27 $.05 $.06 $.02
---- ---- ---- ----
Net Income Applicable-Common Stockholders $.74 $.52 $.19 $.15
==== ==== ==== ====
Per Class A Common Share:
Income from continuing operations $.51 $.52 $.14 $.15
Income from discontinued operations $.30 $.05 $.06 $.02
--- ---- ---- ----
Net Income Applicable to Class A Common Stockholders $.81 $.57 $.20 $.17
==== ==== ==== ====
Dividends per share:
Common $.60 $.585 $.20 $.195
==== ===== ==== =====
Class A Common $.66 $.645 $.22 $.215
==== ===== ==== =====
URSTADT BIDDLE PROPERTIES INC. (NYSE: UBA AND UBP)
NINE MONTHS AND THREE MONTHS ENDED JULY 31, 2005
(In thousands, except per share data)
Nine months Ended Three Months Ended
July 31, July 31,
Reconciliation of Net Income Available to Common and Class A
Common Stockholders to Funds From Operations 2005 2004 2005 2004
- -------------------------------------------- ---- ---- ---- ----
Net Income Applicable to Common and
Class A Common Stockholders $20,198 $13,917 $5,086 $4,154
Plus: Real property depreciation 7,092 6,372 2,482 2,170
Amortization of tenant improvements and allowances 1,717 1,572 515 509
Amortization of deferred leasing costs 456 378 159 149
Minority interests 291 275 107 92
Less: Gain on sale of real estate investments (7,031) - (1,397) -
Funds from Operations (Diluted) $22,723 $22,514 $6,952 $7,074
======= ======= ====== ======
Per Share:
Funds from Operations (Diluted):
Common $0.82 $0.82 $0.25 $0.26
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Class A Common $0.90 $0.90 $0.27 $0.28
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