EXHIBIT 99.1
For 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 2005 OPERATING RESULTS
ANNOUNCES 12TH CONSECUTIVE ANNUAL DIVIDEND INCREASE
GREENWICH, CONNECTICUT, December 15, 2005 ...Urstadt Biddle Properties Inc. (UBA
and UBP) today announced its fourth quarter and full year financial results for
the fiscal year ended October 31, 2005.
Net income applicable to Common and Class A Common shareholders was $24.0
million or $0.96 per diluted Class A Common share and $0.87 per diluted Common
share in 2005 compared to $18.6 million or $0.76 per diluted Class A Common
share and $0.69 per diluted Common share a year ago. Income from continuing
operations was $23.5 million in fiscal 2005 compared to $22.0 million a year
earlier. The Company reported gains on sales of properties totaling $7.0 million
in fiscal 2005 from the sales of two properties earlier in the year. There were
no sales of properties in the fourth quarter of fiscal 2005 or the prior year.
For the three months ended October 31, 2005, net income applicable to Class A
Common and Common shareholders was $3.8 million or $0.15 per diluted Class A
Common share and $0.14 per diluted Common share compared to $4.6 million or
$0.19 per diluted Class A Common share and $0.17 per diluted Common share in
fiscal 2004. Fourth quarter results in fiscal 2005 include administrative costs
of $425,000 incurred in connection with the Company's internal controls
assessment required by Section 404 of Sarbanes-Oxley Act (SOX).
Diluted funds from operations (FFO), the primary indicator of operating
performance, amounted to $29.7 million this year compared to $30.2 million in
fiscal 2004. On a diluted per share basis, FFO was $1.18 per Class A Common
share and $1.07 per Common share in fiscal 2005 compared to $1.21 per Class A
Common share and $1.09 per Common share last year. For the quarter ended October
31, 2005, diluted FFO decreased to $7.0 million or $.28 diluted per Class A
Common share and $.25 per diluted Common share compared to $7.7 million or $.30
per diluted Class A Common share and $.28 per diluted Common share in last
year's fourth quarter. FFO was affected in both periods by the compliance costs
of SOX and the lower yielding returns on the temporary investment of the
proceeds remaining from the sales of the Company's Series D preferred stock
earlier this year.
Commenting on 2005's operating results, Willing Biddle, President and COO said,
"2005 was a good year for our fundamental business of owning, and managing
shopping centers in our primary target markets of Fairfield County, Connecticut
and Westchester and Putnam Counties, New York. In a very difficult acquisition
environment, we were able to purchase two quality shopping centers in our target
market totaling 469,000 square feet at an aggregate cost of approximately $80
million. Competition for quality shopping centers is very high in our target
market and we will continue our disciplined search for properties within that
market. Our administrative costs increased significantly from the costs of
complying with the Sarbanes- Oxley Act of 2002. We remain hopeful that we can
reduce these costs in future years." We were able to keep our properties leased
at an average leased rate of 98% during the year. Rental income from properties
in fiscal 2005 increased 13.6% to $68.7 million from $60.5 million last year.
The increase in revenues was the result of recent property acquisitions. Rental
revenues from properties owned in both years increased by 3%.
DIVIDEND INCREASE
The Directors of the Company approved increases in the dividend rates on shares
of UBP's Class A Common Stock and Common Stock for the twelfth consecutive year.
The quarterly dividend rates were increased to 22.5(cent) for each share of
Class A Common Stock and 20.25(cent) for each share of Common Stock. The
dividends are payable January 20, 2006 to stockholders of record on January 6,
2006.
ACQUISITIONS AND SALES
Despite increased competition by buyers of retail properties in its target
areas, the Company acquired two retail properties during the year totaling
469,000 square feet of leasable space at an aggregate cost of $80 million. The
Company also sold two properties for total net proceeds of $17.8 million and
realized gains on such sales totaling $7.0 million.
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-four (34) properties
containing 3.7 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 2005 RESULTS
(in thousands, except per share data)
Fiscal Year Ended Three Months Ended
October 31 October 31
---------- ----------------
2005 2004 2005 2004
---- ---- ---- ----
Revenues
Base Rents $52,149 $46,824 $13,493 $11,834
Recoveries from tenants 16,506 13,654 4,114 3,340
Lease termination income 253 577 69 35
Interest and other 1,056 825 399 243
----- --- --- ---
69,964 61,880 18,075 15,452
------ ------ ------ ------
Operating Expenses
Property operating 10,915 9,242 2,666 2,028
Property taxes 9,245 8,025 2,482 2,081
Interest 8,502 8,113 2,100 2,049
Depreciation and amortization 12,054 10,541 3,147 2,749
General and administrative expenses 5,155 3,416 1,465 814
Directors' fees and expenses 258 207 53 52
--- --- -- --
46,129 39,544 11,913 9,773
------ ------ ------ -----
Operating Income 23,835 22,336 6,162 5,679
Minority Interests (339) (367) (48) (92)
----- ----- ---- ----
Income from Continuing Operations 23,496 21,969 6,114 5,587
Discontinued Operations:
Income from Discontinued Operations 469 1,346 - 250
Gain on sales of properties 7,020 - - -
----- ------ ------ ------
Income from Discontinued Operations 7,489 1,346 - 250
----- ----- ------ ---
Net Income 30,985 23,315 6,114 5,837
Preferred Stock Dividends (7,009) (4,749) (2,336) (1,188)
------- ------- ------- -------
Net Income Applicable to Common and Class A Common Stockholders
$23,976 $18,566 $3,778 $4,649
======= ======= ====== ======
Basic Earnings Per Share:
Per Common Share:
Income from continuing operations $ .62 $ .65 $ .14 $ .16
Income from discontinued operations $ .28 $ .05 $ - $ .01
------ ------ ---- -----
Net Income Applicable to Common Stockholders $ .90 $ .70 $ .14 $ .17
====== ====== ===== =====
Per Class A Common Share:
Income from continuing operations $ .68 $ .71 $ .16 $ .18
Discontinued operations $ .31 $ .06 $ - $ .01
------ ----- ----- -----
Net Income Applicable to Class A Common Stockholders $ .99 $ .77 $ .16 $ .19
====== ====== ===== =====
Diluted Earnings Per Share:
Per Common Share:
Income from continuing operations $ .60 $ .64 $ .14 $ .16
Income from discontinued operations $ .27 $ .05 $ - $ .01
------ ------ ---- -----
Net Income Applicable to Common Stockholders $ .87 $ .69 $ .14 $ .17
====== ====== ===== =====
Per Class A Common Share:
Income from continuing operations $ .66 $ .71 $ .15 $ .18
Discontinued operations $ .30 $ .05 $ - $ .01
------ ----- ----- -----
Net Income Applicable to Class A Common Stockholders $ .96 $ .76 $ .15 $ .19
====== ===== ===== =====
Dividends per share: $ .80 $ .78 $ .20 $.195
====== ===== ===== =====
Common $ .88 $ .86 $ .22 $.215
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Class A Common
URSTADT BIDDLE PROPERTIES INC. (NYSE: UBA AND UBP)
FISCAL YEAR AND FOURTH QUARTER 2005 RESULTS
(in thousands, except per share data)
Fiscal Year Ended Three Months Ended
October 31 October 31
---------- -------------------
2005 2004 2005 2004
---- ---- ---- ----
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 $23,976 $18,566 $3,778 $4,649
Plus: Real property depreciation 9,164 8,076 2,411 2,006
Amortization of tenant improvements and allowances 2,325 1,968 608 603
Amortization of deferred leasing costs 565 497 128 140
Depreciation and amortization on discontinued operations 345 706 - 176
Minority Interest 339 367 48 92
Less: Gain on sales of properties (7,020) - - -
------- ------- ------- -------
Funds from Operations Applicable to Common and Class A
Common Stockholders (Diluted) $29,694 $30,180 $6,973 $7,666
======= ======= ====== ======
Funds from Operations (Diluted) Per Share:
Common $1.07 $1.09 $.25 $.28
===== ===== ==== ====
Class A Common $1.18 $1.21 $.28 $.30
===== ===== ==== ====
Weighted Average Shares Outstanding - Diluted
Common equivalent shares 7,067 6,820 7,124 6,930
===== ===== ===== =====
Class A Common equivalent shares 18,840 18,836 18,662 18,864
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