Equity One, Inc. Chaim Katzman, CEO
1696 NE Miami Gardens Drive Howard Sipzner, CFO
North Miami Beach, FL 33179 Michele Guard, Investor Relations
305-947-1664 (NYSE:EQY)
FOR IMMEDIATE RELEASE:
February 20, 2002
EQUITY ONE, INC. REPORTS FOURTH QUARTER AND YEAR-END 2001 RESULTS
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o REVENUES TOTALED $24.7 MILLION AND $83.0 MILLION FOR THE
QUARTER AND TWELVE MONTHS ENDED DECEMBER 31, 2001, RESPECTIVELY
o NET INCOME BEFORE AN EXTRAORDINARY ITEM TOTALED $6.6 MILLION AND $20.3
MILLION FOR THE QUARTER AND TWELVE MONTHS ENDED DECEMBER 31, 2001,
EQUATING TO $0.23 AND $0.90 PER DILUTED SHARE, RESPECTIVELY
o FUNDS FROM OPERATIONS TOTALED $10.2 MILLION AND $30.9 MILLION
FOR THE QUARTER AND TWELVE MONTHS ENDED DECEMBER 31, 2001, EQUATING TO
$0.35 AND $1.34 PER DILUTED SHARE, RESPECTIVELY
NORTH MIAMI BEACH, FL, FEBRUARY 20, 2002- Equity One, Inc. (NYSE: EQY) today
reported its operating results for the quarter and twelve months ended December
31, 2001.
For the quarter ended December 31, 2001, Total Revenues, Net Income before an
Extraordinary Item, Net Income before an Extraordinary Item per diluted share,
Funds from Operations (FFO) and FFO per diluted share were $24.7 million, $6.6
million, $0.23 per diluted share, $10.2 million and $0.35 per diluted share,
increasing 20.0%, 60.4%, 9.5%, 49.2% and 0.0%, respectively, from $20.6 million,
$4.1 million, $0.21 per diluted share, $6.8 million and $0.35 per diluted share
for the quarter ended December 31, 2000.
For the twelve months ended December 31, 2001, Total Revenues, Net Income before
an Extraordinary Item, Net Income before an Extraordinary Item per diluted
share, Funds from Operations and FFO per diluted share were $83.0 million, $20.3
million, $0.90 per diluted share, $30.9 million and $1.34 per diluted share,
increasing 67.2%, 61.4%, 3.4%, 62.4% and 2.3%, respectively, from $49.6 million,
$12.6 million, $0.87 per diluted share, $19.0 million and $1.31 per diluted
share for the twelve months ended December 31, 2000.
For both the quarter and twelve months ended December 31, 2001, the
Extraordinary Item relates to a $1.5 million prepayment penalty arising from the
early extinguishment of a fixed rate mortgage loan in December 2001.
"2001 was a year of tremendous achievement for Equity One," stated Chaim
Katzman, Chairman and Chief Executive Officer of Equity One. "We have
successfully integrated the operations of CEFUS and UIRT, and are running
seamlessly as one company with 85 properties, almost 1,900 tenants, five
management offices in Florida and two in Texas. Our focus on neighborhood,
supermarket-anchored shopping centers continues to find favor in both the local
and financial
marketplaces. Florida and Texas, our primary markets, are performing well in the
face of a weaker economy, and are among the fastest growing states. We are
making good progress on leasing up significant portions of the vacant space we
acquired in the two transactions. Lastly, we are pleased to have completed our
shelf registration earlier this month permitting us to offer and sell up to $250
million of new securities, which will facilitate our future growth."
The results for the quarter and twelve months ended December 31, 2001 reflect
the acquisitions of United Investors Realty Trust ("UIRT") and Centrefund Realty
(U.S.) Corporation ("CEFUS"). All periods since August 18, 2000 have been
restated or adjusted to account for the acquisition on that date of 68.07% of
the stock of First Capital Realty (TSE:FCR), the parent of CEFUS, by Gazit-Globe
(1982) Ltd. (TLV:GLOB), Equity One's majority shareholder. The restatement
consolidates the operations of Equity One and CEFUS between August 18, 2000 and
September 19, 2001, subject to a 31.93% minority interest in CEFUS (the "CEFUS
Accounting Treatment"). On September 20, 2001, Equity One acquired 100% of CEFUS
from First Capital Realty, thereby acquiring the remaining 31.93% minority
interest.
We define FFO consistent with the NAREIT definition as net income before gains
(losses) on the sale of real estate, extraordinary items and minority interest,
plus real estate depreciation and amortization of capitalized leasing costs,
adjusted to add back any deferred income tax expense or subtract any deferred
income tax credit attributable to the CEFUS Accounting Treatment. We believe
that FFO should be considered along with, but not as an alternative to, net
income as defined by accounting principles generally accepted in the United
States of America ("GAAP") as a measure of our operating performance. FFO does
not represent cash generated from operating activities in accordance with GAAP
and is not necessarily indicative of funds available to fund our cash needs. Our
calculation of FFO may not be comparable to similarly titled measures reported
by other companies.
EARNINGS GUIDANCE
We remain comfortable with our previously disclosed guidance of between $1.43
and $1.47 of FFO per diluted share for 2002. We expect the growth in our FFO to
be driven by a combination of internal growth related to increases in rents and
the lease-up of vacant space, as well as selective property acquisitions. This
guidance is provided for information purposes and is subject to change.
VIDEO WEB-CAST
We will hold a live, video web-cast on Thursday, February 21, 2002 at 1:00 p.m.
EST with Chaim Katzman, Doron Valero and Howard Sipzner to discuss the Company's
performance for the quarter and year ending December 31, 2001. The session may
be accessed at WWW.EQUITYONE.NET using the icons on the bottom of the home page.
FOR ADDITIONAL INFORMATION
For a copy of our fourth quarter supplemental information package, please access
the "Financial Reports" section in our web site at WWW.EQUITYONE.NET. To be
included in our e-mail
distributions for future press releases and other notices, please send your
e-mail address to Michele Guard at MGUARD@EQUITYONE.NET.
ABOUT EQUITY ONE, INC.
Equity One, Inc. (NYSE:EQY) is a self-administered, self-managed real estate
investment trust that principally acquires, renovates, develops and manages
community and neighborhood shopping centers anchored by national and regional
supermarket chains. The Company's portfolio currently consists of 85 properties
primarily located in metropolitan areas of Florida and Texas, encompassing 55
supermarket-anchored shopping centers, 6 drug store-anchored shopping centers,
18 other retail-anchored shopping centers, 4 commercial properties, 1
supermarket-anchored development and 1 drug store-anchored development, as well
as interests in 3 joint ventures. For more information, please visit Equity
One's website at WWW.EQUITYONE.NET.
FORWARD LOOKING STATEMENTS
Certain matters discussed in this press release constitute forward-looking
statements within the meaning of the federal securities laws. Although Equity
One believes that the expectations reflected in such forward-looking statements
are based upon reasonable assumptions, it can give no assurance that these
expectations will be achieved. Factors that could cause actual results to differ
materially from current expectations include changes in macro-economic
conditions and the demand for retail space in Florida and Texas; the continuing
financial success of Equity One's current and prospective tenants; Equity One's
ability to realize economies of scale in connection with its recent CEFUS and
UIRT transactions; continuing supply constraints in Equity One's current
markets; and other risks, which are described in Equity One's filings with the
Securities and Exchange Commission.
EQUITY ONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
For the three For the three
months ended months ended %
December 31, 2001 December 31, 2000 Increase
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Total Revenue $ 24,680 $ 20,570 20.0%
Net Income before Extraordinary Item $ 6,642 $ 4,142 60.4%
per share (basic) $ 0.23 $ 0.21 9.5%
per share (diluted) $ 0.23 $ 0.21 9.5%
Extraordinary Item - Prepayment Penalty $ 1,546 $ --
Net Income after Extraordinary Item $ 5,096 $ 4,142 23.0%
per share (basic) $ 0.18 $ 0.21 (14.3)%
per share (diluted) $ 0.18 $ 0.21 (14.3)%
Funds from Operations $ 10,194 $ 6,834 49.2%
per share (diluted) $ 0.35 $ 0.35 0.0%
Weighted average common shares
Basic 28,560 19,291
Diluted 29,248 19,576
For the twelve For the twelve
months ended months ended %
December 31, 2001 December 31, 2000 Increase
------------------------- ---------------------- -----------
Total Revenue $ 82,987 $ 49,621 67.2%
Net Income before Extraordinary Item $ 20,267 $ 12,555 61.4%
per share (basic) $ 0.90 $ 0.88 2.3%
per share (diluted) $ 0.90 $ 0.87 3.4%
Extraordinary Item - Prepayment Penalty $ 1,546 $ --
Net Income after Extraordinary Item $ 18,721 $ 12,555 49.1%
per share (basic) $ 0.83 $ 0.88 (5.7)%
per share (diluted) $ 0.83 $ 0.87 (4.6)%
Funds from Operations $ 30,931 $ 19,044 62.4%
per share (diluted) $ 1.34 $ 1.31 2.3%
Weighted average common shares
Basic 22,414 14,285
Diluted 23,037 14,504
EQUITY ONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
December 31, 2001 December 31, 2000
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Investments in Real Estate
(before accumulated depreciation) $ 656,005 $ 501,528
Total Assets $ 668,536 $ 542,817
Mortgage Notes Payable $ 345,047 $ 280,396
Credit Agreement(s) $ 27,409 $ 4,243
Total Liabilities $ 390,269 $ 321,267
Minority Interest $ -- $ 33,887
Stockholders' Equity $ 278,267 $ 187,663
Total Liabilities, Minority Interest and
Stockholders' Equity $ 668,536 $ 542,817