EQUITY ONE, INC. FOR ADDITIONAL INFORMATION AT THE COMPANY:
1696 NE Miami Gardens Drive Howard Sipzner, Chief Financial Officer
North Miami Beach, FL 33179 Michele Guard, Investor Relations
305-947-1664 MEDIA CONTACT:
Abbe Solomon 305-446-2700
FOR IMMEDIATE RELEASE:
- ----------------------
July 24, 2002
EQUITY ONE REPORTS 31.6% INCREASE IN NET INCOME PER SHARE AND
6.5% INCREASE IN FFO PER SHARE FOR SECOND QUARTER
NORTH MIAMI BEACH, FL, JULY 24, 2002 - Equity One, Inc. (NYSE: EQY) today
reported Total Revenues of $24.0 million, Net Income of $8.4 million, $0.25 Net
Income per diluted share, Funds from Operations (FFO) of $11.1 million and $0.33
FFO per diluted share for the quarter ended June 30, 2002, representing
increases of 31.8%, 123.5%, 31.6%, 73.2% and 6.5%, respectively, from $18.2
million, $3.8 million, $0.19, $6.4 million and $0.31, respectively, for the
quarter ended June 30, 2001.
Equity One, Inc. also reported Total Revenues of $49.9 million, Net Income of
$21.7 million, $0.68 Net Income per diluted share, Funds from Operations (FFO)
of $21.9 million and $0.68 FFO per diluted share for the six months ended June
30, 2002, representing increases of 34.8%, 178.3%, 74.4%, 64.0% and 4.6%,
respectively, from $37.1 million, $7.8 million, $0.39, $13.3 million and $0.65,
respectively, for the six months ended June 30, 2001.
"We are pleased with our second quarter results, which incorporate the September
2001 acquisitions of Centrefund Realty (U.S.) Corporation and United Investors
Realty Trust," stated Chaim Katzman, Chairman and CEO. "In the second quarter
and including our July acquisition, we invested over $50 million to purchase
five supermarket-anchored centers at an aggregate yield of 10%, as well as one
retail development site. As a result of these acquisitions, we increased our
supermarket-anchored category to 70% of total square footage, lengthened the
average term on our supermarket leases to 11.8 years and increased the
supermarket anchor component of total annual minimum rent to 17%. In the second
quarter, we renewed 85 leases and increased the associated average rental rate
per square foot by 4.5% to $12.06 from $11.54. Overall, we retained 77.5% of the
271,000 square feet up for renewal this quarter, had net positive absorption of
over 77,000 square feet, and improved our occupancy on June 30, 2002 to 87.6%
from 86.8% at March 31, 2002. On the financial front, we closed the quarter with
a 41% debt to total market capitalization, a 3.0 EBITDA coverage ratio and only
17% of our debt subject to variable interest rates." ACQUISITIONS
During the second quarter of 2002, we acquired 4 supermarket-anchored shopping
centers and one retail development site for total consideration of $40.7
million. During the first six months of 2002, we acquired a total of nine
properties for approximately $50 million.
We acquired an additional supermarket-anchored shopping center in July 2002 for
$9.25 million.
ASSET SALES/DISCONTINUED OPERATIONS
During the second quarter of 2002, we sold one non-core asset for $2.4 million,
and realized a gain on the sale of approximately $1.0 million. Our second
quarter 2002 income from discontinued operations, including the gain on sale,
was approximately $1.3 million.
For the six months ended June 30, 2002 we sold four non-core assets for a total
of $13.0 million, and realized total gains on these sales of approximately $7.1
million. For the six months ended June 30, 2002, our income from discontinued
operations, including the gains on sale, was approximately $8.0 million.
We also sold one unanchored retail center in July 2002 for $5.2 million,
realizing a total gain of approximately $100,000.
EARNINGS GUIDANCE
Based on current plans and assumptions, and subject to the risks and
uncertainties more fully described in Equity One's reports filed with the
Securities and Exchange Commission, we are maintaining our estimate of full year
2002 FFO per diluted share to range between $1.36 and $1.40. We expect to grow
our FFO by a combination of internal growth related to increases in rents and
the lease-up of vacant space, along with incremental income from property
acquisitions. This guidance is provided for information purposes and is subject
to change.
CONFERENCE CALL INFORMATION AND VIDEO WEB-CAST
We will host a conference call on Thursday, July 25, 2002 at 1:30 p.m. EST to
discuss our performance for the three and six months ended June 30, 2002. You
may access the video web-cast at WWW.EQUITYONE.NET using the icons on the bottom
of the home page. Investors may also join the call by dialing 800-360-9865. A
replay of the call can be accessed by dialing locally 973-709-2089 or toll free
800-428-6051 and entering pass Code 252878.
FOR ADDITIONAL INFORMATION
For a copy of our second 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.
ACCOUNTING AND OTHER DISCLOSURES
All prior reporting periods which fall between August 18, 2000 and September 19,
2001 have been restated or adjusted to account for the acquisition on August 18,
2000 of 68.07% of the stock of First Capital Realty (TSE:FCR), the parent of
Centrefund Realty (U.S.) Corporation, or 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. 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 most recent 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/subtract any deferred income tax
expense/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 U.S. generally accepted accounting principles, or 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.
ABOUT EQUITY ONE, INC.
Equity One is a real estate investment trust that acquires, renovates, develops
and manages neighborhood shopping centers anchored by national and regional
supermarket chains and other necessity-oriented retailers such as drug stores or
discount retail stores. Our 8.8 million square foot portfolio consists of 90
properties primarily located in metropolitan areas of Florida and Texas,
encompassing 57 supermarket-anchored shopping centers, 8 drug store-anchored
shopping centers, 19 other retail-anchored shopping centers, 3 commercial
properties and 3 retail developments, as well as non-controlling interests in 3
unconsolidated joint ventures. For additional information, please visit our web
site 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 WE
BELIEVE THAT THE EXPECTATIONS REFLECTED IN SUCH FORWARD-LOOKING STATEMENTS ARE
BASED UPON REASONABLE ASSUMPTIONS, WE 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 OUR CURRENT AND PROSPECTIVE TENANTS; CONTINUING SUPPLY
CONSTRAINTS IN OUR GEOGRAPHIC MARKETS; THE AVAILABILITY OF PROPERTIES FOR
ACQUISITION; THE SUCCESS OF OUR EFFORTS TO LEASE UP VACANT PROPERTIES; THE
EFFECTS OF NATURAL AND OTHER DISASTERS; AND OTHER RISKS, WHICH ARE DESCRIBED IN
OUR 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 %
JUNE 30, 2002 JUNE 30, 2001 INCREASE
--------------------------- ---------------------------- ---------------
Total Revenues $ 24,001 $ 18,207 31.8%
Income from Continuing Operations $ 7,106 $ 3,430 107.2%
per share (basic) $ 0.21 $ 0.17 23.5%
per share (diluted) $ 0.21 $ 0.17 23.5%
Net Income $ 8,438 $ 3,775 123.5%
per share (basic) $ 0.25 $ 0.19 31.6%
per share (diluted) $ 0.25 $ 0.19 31.6%
Funds from Operations $ 11,131 $ 6,428 73.2%
per share (diluted) $ 0.33 $ 0.31 6.5%
Weighted average common shares
basic 33,255 19,854
diluted 33,967 20,596
FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED %
JUNE 30, 2002 JUNE 30, 2001 INCREASE
--------------------------- ---------------------------- ---------------
Total Revenues $ 49,945 $ 37,054 34.8%
Income from Continuing Operations $ 13,744 $ 7,208 90.7%
per share (basic) $ 0.44 $ 0.36 22.2%
per share (diluted) $ 0.43 $ 0.36 19.4%
Net Income $ 21,705 $ 7,799 178.3%
per share (basic) $ 0.69 $ 0.39 76.9%
per share (diluted) $ 0.68 $ 0.39 74.4%
Funds from Operations $ 21,869 $ 13,335 64.0%
per share (diluted) $ 0.68 $ 0.65 4.6%
Weighted average common shares
basic 31,316 19,854
diluted 31,999 20,472
EQUITY ONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
JUNE 30, 2002 DECEMBER 31, 2001
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Investments in Real Estate $ 696,414 $ 652,169
Accumulated Depreciation (34,121) (28,031)
Property Held for Sale 10,131 3,549
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Rental Property, Net 672,424 627,687
Other Assets
44,107 40,849
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Total Assets $ 716,531 $ 668,536
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Mortgage Notes Payable $ 312,918 $ 345,047
Revolving Credit Facilities 35,893 27,409
Other Liabilities 20,711 17,813
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Total Liabilities 369,522 390,269
Stockholders' Equity 347,009 278,267
---------------- ----------------
Total Liabilities and Stockholders' Equity $ 716,531 $ 668,536
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