EX-99.1 2 exhibit99_1.htm 2Q 2014 PRESS RELEASE
EXHIBIT 99.1

For Immediate Release


Contact:
Willing L. Biddle, CEO or
 
John T. Hayes, CFO
 
Urstadt Biddle Properties Inc.
 
(203)863-8200


Urstadt Biddle Properties Inc. Reports Operating Results for the Second Quarter and First Half of Fiscal 2014

Greenwich, Connecticut, June 9, 2014 -- Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real estate investment trust, today reported its operating results for the three and six month periods ended April 30, 2014.
 
Diluted Funds from Operations (FFO) for the quarter ended April 30, 2014 was $8,037,000 or $0.26 per Class A Common share and $0.23 per Common share, compared to $7,654,000 or $0.25 per Class A Common share and $0.22 per Common share in last year's second quarter.   For the first six months of fiscal 2014, diluted FFO amounted to $16,009,000 or $0.52 per Class A Common share and $0.46 per Common share compared to $11,353,000 or $0.37 per Class A Common share and $0.33 per Common share in the corresponding period of fiscal 2013.  The above FFO amounts for fiscal 2013 include several significant one-time items.  In an effort to assist investors in analyzing changes to FFO, we have included a second FFO reconciliation table at the end of this report which explains the effect of these one-time items on the company's FFO per share.

Net income from continuing operations applicable to Class A Common and Common stockholders for the second quarter of fiscal 2014 was $2,881,000 or $0.09 per diluted Class A Common share and $0.08 per diluted Common share compared to $2,704,000, or $0.09 per diluted Class A Common share and $0.08 per diluted Common share and in last year's second quarter.  Net income from continuing operations applicable to Class A Common and Common stockholders for the first six months of fiscal 2014 was $5,893,000 or $0.19 per diluted Class A Common share and $0.17 per diluted Common share compared to $1,615,000, or $0.05 per diluted Class A Common share and $0.05 per diluted Common share and in last year's first six months.

The per share amounts for both FFO and net income in the first half of fiscal 2013 include the dilutive effect of the issuance of 2.5 million Class A Common shares in a follow-on public offering and 5.175 million shares of a new Series F preferred stock, both in October 2012.  The common stock offering raised net proceeds of $48 million and the preferred stock offering raised an additional $125 million, which funds were not fully invested until May 2013.  With respect to those funds, $100 million of the preferred stock offering proceeds was used to redeem the Series E preferred stock in November 2013 and the Series C preferred stock, which was fully redeemed by May 2013.  As a result of these redemptions, the company incurred charges to expense the original issue costs of the preferred stock of $406,000 in the second quarter of fiscal 2013 and $3.8 million in the first quarter of fiscal 2013.  The first two quarters of fiscal 2013 also included payment of $476,000 in preferred stock dividends related to the Series C preferred stock, while the first two quarters of fiscal 2014 did not include dividends on this preferred stock as all such shares were redeemed by May of fiscal 2013.  In addition, the per share amounts for FFO and net income for the six months ended April 30, 2014 and 2013 include one-time property acquisition costs of $413,000 and $278,000, respectively.

At April 30, 2014, the Company's consolidated core properties were 90.6% leased, an increase of 0.46% from the end of fiscal 2013.  Overall consolidated core property occupancy increased to 87.4% at April 30, 2014 from 86.9% at the end of fiscal 2013.  The Company has equity interests in seven unconsolidated joint ventures (730,000 square feet).  At April 30, 2014, these joint ventures were approximately 98% leased.

Commenting on the quarter's operating results, Willing L. Biddle, President and CEO of UBP, said "We were pleased to add two more properties to our portfolio in the second quarter of 2014.  These additions, and another retail property now under contract, have helped us continue the momentum created in fiscal 2013 and the first quarter of fiscal 2014.  Both new properties are located in Riverhead, NY at the eastern terminus of the Long Island Expressway.  One of these properties is a 195,000 square foot shopping center anchored by a new 168,000 square foot Wal-Mart and includes 27,000 square feet of newly built in-line retail space, of which 23,000 square feet already has been leased.  The second property, located adjacent to the Wal-Mart center, includes a free standing Applebee's Restaurant, with development rights for an additional 7,200 square feet of retail space.  The Wal-Mart center shares a traffic light with the Tanger Outlet Center located directly across the street.  The property that we placed under contract, which acquisition we expect to conclude in the third quarter of fiscal 2014, is primarily a retail property located in our core marketplace."

Continuing, Mr. Biddle said, "One of the company's most important priorities is leasing the remaining vacant space in our portfolio.  We have recently completed the re-tenanting of nearly all of the previously vacant space in our Meriden, CT shopping center and are working diligently to complete the re-development of the Westchester Pavilion center in White Plains, NY, where we are seeking a zoning change that will increase the permitted buildable area to 860,000 square feet from the current 187,000 square feet.   Re-development of our Chilmark center in Briarcliff Manor, NY, which includes new construction of a nearly 14,000 square foot CVS store scheduled for delivery to the tenant in August 2014 and 3,000 square feet of other new retail space, is progressing on schedule.  The sale in the first quarter of the company's two industrial properties in St. Louis, MO and Dallas, TX provided capital for the acquisition in that quarter of a shopping center in Bethel, CT as well as the Riverhead, NY properties described above."

Urstadt Biddle Properties Inc. is a self-administered equity real estate investment trust which owns or has equity interests in 67 properties containing approximately 5.0 million square feet of space.  Listed on the New York Stock Exchange since 1970, it provides investors with a means of participating in ownership of income-producing properties. It has paid 178 consecutive quarters of uninterrupted dividends to its shareholders since its inception and has raised total dividends to its shareholders for the last 20 consecutive years.
 
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)
Six Months and Three Months Ended April 30, 2014 and 2013
 (in thousands, except per share data)

 
  
Six Months Ended
    
Three Months Ended
  
 
  
April 30,
    
April 30,
  
 
  
2014
    
2013
    
2014
    
2013
  
 
  
   
   
   
 
Revenues
  
   
   
   
 
Base rents
  
$
36,993
    
$
34,036
    
$
18,780
    
$
17,095
  
Recoveries from tenants
    
13,133
      
11,887
      
6,751
      
5,564
  
Lease termination income
    
52
      
24
      
-
      
24
  
Other income
    
968
      
1,100
      
421
      
375
  
Total Revenues
    
51,146
      
47,047
      
25,952
      
23,058
  
 
                                
Expenses
                                
Property operating
    
10,876
      
9,695
      
5,950
      
4,437
  
Property taxes
    
8,567
      
7,537
      
4,235
      
3,729
  
Depreciation and amortization
    
9,435
      
8,348
      
4,859
      
4,210
  
General and administrative
    
4,087
      
4,146
      
1,983
      
1,994
  
Provision for tenant credit losses
    
359
      
476
      
232
      
223
  
Acquisition costs
    
413
      
278
      
42
      
125
  
Directors' fees and expenses
    
172
      
180
      
82
      
72
  
Total Operating Expenses
    
33,909
      
30,660
      
17,383
      
14,790
  
 
                                
Operating Income
    
17,237
      
16,387
      
8,569
      
8,268
  
 
                                
Non-Operating Income (Expense):
                                
Interest expense
    
(5,009
)
    
(4,243
)
    
(2,605
)
    
(2,023
)
Equity in net income from unconsolidated joint ventures
    
805
      
601
      
499
      
419
  
Interest, dividends and other investment income
    
70
      
1,242
      
19
      
510
  
Income From Continuing Operations Before Discontinued Operations
    
13,103
      
13,987
      
6,482
      
7,174
  
Discontinued operations:
                                
Income from discontinued operations
    
141
      
765
      
-
      
382
  
Gain on sale of properties
    
12,612
      
-
      
-
      
-
  
Income from discontinued operations
    
12,753
      
765
      
-
      
382
  
 
                                
Net Income
    
25,856
      
14,752
      
6,482
      
7,556
  
 
                                
Noncontrolling interests:
                                
Net income attributable to noncontrolling interests
    
(304
)
    
(317
)
    
(148
)
    
(135
)
Net income attributable to Urstadt Biddle Properties Inc.
    
25,552
      
14,435
      
6,334
      
7,421
  
Preferred stock dividends
    
(6,906
)
    
(7,890
)
    
(3,453
)
    
(3,929
)
Redemption of preferred stock
    
-
      
(4,165
)
    
-
      
(406
)
 
                                
Net Income Applicable to Common and Class A Common Stockholders
  
$
18,646
    
$
2,380
    
$
2,881
    
$
3,086
  
 
                                
Diluted Earnings Per Share:
                                
Per Common Share:
                                
    Income from continuing operations
  
$
0.17
    
$
0.05
    
$
0.08
    
$
0.08
  
    Income from discontinued operations
  
$
0.37
    
$
0.02
    
$
-
    
$
0.01
  
    Net Income Applicable to Common Stockholders
  
$
0.54
    
$
0.07
    
$
0.08
    
$
0.09
  
 
                                
Per Class A Common Share:
                                
    Income from continuing operations
  
$
0.19
    
$
0.05
    
$
0.09
    
$
0.09
  
    Income from discontinued operations
  
$
0.41
    
$
0.03
    
$
-
    
$
0.01
  
    Net Income Applicable to Class A Common Stockholders
  
$
0.60
    
$
0.08
    
$
0.09
    
$
0.10
  
 
                                
Weighted Average Shares Outstanding (Diluted):
                                
Common
    
8,443
      
8,317
      
8,542
      
8,411
  
Class A Common
    
23,392
      
23,328
      
23,427
      
23,367
  
The following information summarizes the Company's results of operations for the six month and three month periods ended April 30, 2014 and 2013 (in thousands, except percentage amounts):
 
  
Six Months Ended
    
   
 
 
  
April 30,
    
   
Change Attributable to:
  
Revenues
  
2014
    
2013
    
Increase (decrease)
    
%
Change
    
Property Acquisitions
    
Properties Held
In Both Periods (Note 1)
  
Base rents
  
$
36,993
    
$
34,036
    
$
2,957
      
8.7
%
  
$
2,757
    
$
200
  
Recoveries from tenants
    
13,133
      
11,887
      
1,246
      
10.5
%
    
1,234
      
12
  
Other income
    
968
      
1,100
      
(132
)
    
(12.0
%)
    
33
      
(165
)
 
                                                
Operating Expenses
                                                
Property operating expenses
    
10,876
      
9,695
      
1,181
      
12.2
%
    
749
      
432
  
Property taxes
    
8,567
      
7,537
      
1,030
      
13.7
%
    
662
      
368
  
Depreciation and amortization
    
9,435
      
8,348
      
1,087
      
13.0
%
    
905
      
182
  
General and administrative expenses
    
4,087
      
4,146
      
(59
)
    
(1.4
%)
    
n/
a
    
n/
a
 
                                                
Other Income/Expenses
                                                
Interest expense
    
5,009
      
4,243
      
766
      
18.1
%
    
819
      
(53
)
Interest, dividends and other investment income
    
70
      
1,242
      
(1,172
)
    
(94.4
%)
    
n/
a
    
n/
a

Note 1 – Properties held in both periods includes only properties owned for the entire periods of 2014 and 2013, all other properties are included in the property acquisition column.  There are no properties excluded from the analysis.


 
  
Three Months Ended
    
   
 
 
  
April 30,
    
   
Change Attributable to:
  
Revenues
  
2014
    
2013
    
Increase (decrease)
    
%
Change
    
Property Acquisitions
    
Properties Held
In Both Periods (Note 2)
  
Base rents
  
$
18,780
    
$
17,095
    
$
1,685
      
9.9
%
  
$
1,510
    
$
175
  
Recoveries from tenants
    
6,751
      
5,564
      
1,187
      
21.3
%
    
803
      
384
  
Other income
    
421
      
375
      
46
      
12.3
%
    
32
      
14
  
 
                                                
Operating Expenses
                                                
Property operating expenses
    
5,950
      
4,437
      
1,513
      
34.1
%
    
468
      
1,045
  
Property taxes
    
4,235
      
3,729
      
506
      
13.6
%
    
372
      
134
  
Depreciation and amortization
    
4,859
      
4,210
      
649
      
15.4
%
    
496
      
153
  
General and administrative expenses
    
1,983
      
1,994
      
(11
)
    
(0.6
%)
    
n/
a
    
n/
a
 
                                                
Other Income/Expenses
                                                
Interest expense
    
2,605
      
2,023
      
582
      
28.8
%
    
497
      
85
  
Interest, dividends and other investment income
    
19
      
510
      
(491
)
    
(96.3
%)
    
n/
a
    
n/
a

Note 2 – Properties held in both periods includes only properties owned for the entire periods of 2014 and 2013, all other properties are included in the property acquisition column.  There are no properties excluded from the analysis.

Revenues:
Base rents increased by 8.7% to $37.0 million for the six month period ended April 30, 2014 as compared with $34.0 million in the comparable period of 2013. Base rents increased 9.9% to $18.8 million for the three months ended April 30, 2014 as compared with $17.1 million in the comparable period of 2013. The change in base rentals and the changes in other income statement line items were attributable to:

Property Acquisitions:

In fiscal 2013 and the first half of fiscal 2014, the Company purchased equity interests in fourteen properties totaling approximately 327,000 square feet of GLA.  These properties accounted for all of the revenue and expense changes attributable to property acquisitions during the six month and three month periods ended April 30, 2014.  In addition, the Company purchased an equity interest in two properties in the first six months of fiscal 2014 that are accounted for by the equity method of accounting and are not consolidated into the financial statements of the Company and as such are not included in any of the variance analysis presented below.

Properties Held in Both Periods:

Revenues
Base rents increased during the six month and three month periods ended April 30, 2014 by $200,000 and $175,000, respectively when compared with the corresponding prior periods as the percentage of the portfolio that was leased was increased slightly.  In the first half of fiscal 2014, the Company leased or renewed approximately 271,700 square feet (or approximately 6.3% of total consolidated core property leasable area).  At April 30, 2014, the Company's consolidated core properties were approximately 90.6% leased, an increase of 0.46% from the end of fiscal 2013.  Overall core property occupancy increased to 87.4% at April 30, 2014 from 86.9% at the end of fiscal 2013.

In the six month and three month periods ended April 30, 2014, recoveries from tenants for properties owned in both periods (which represents reimbursements from tenants for operating expenses and property taxes) increased by $12,000 and $384,000, respectively. This net increase was a result of higher operating expenses at its properties held in both periods due predominantly to an increase in expenses relating to parking lots, building roofs, building repairs and snow removal.

Interest, dividends and other investment income decreased in the six month and three month periods ended April 30, 2014 when compared to the corresponding prior periods by $1.2 million and $491,000, respectively predominantly as a result of the Company investing approximately $28 million of the proceeds from its two equity offerings completed in October 2012 in income producing securities in the first half of fiscal 2013.  These securities were sold in the third quarter of fiscal 2013.

Expenses
Property operating expenses for properties held in both periods increased in the six month and three month periods ended April 30, 2014 when compared with the corresponding prior periods by $432,000 and $1.0 million, respectively, as a result of an increase in expenses relating to parking lots, building roofs, building repairs and snow removal cost.

Real estate taxes for properties held in both periods increased in the six month and three month periods ended April 30, 2014 when compared with the corresponding prior periods as a result of normal tax assessment increases.

Interest expense for properties owned in the six month and three month periods ended April 30, 2014 was relatively unchanged as a result of normal amortization of secured mortgages causing a reduction in interest expense offset by an increase in unsecured borrowing in the first six months of fiscal 2014 when compared to the first six months of fiscal 2013 which caused an increase in interest expense.

Depreciation and amortization expense from properties held in both periods was relatively unchanged.

General and administrative was relatively unchanged.

Non-GAAP Financial Measure
Funds from Operations ("FFO")

The Company considers FFO to be a meaningful additional measure of operating performance primarily because it excludes the assumption that the value of its real estate assets diminishes predictably over time and industry analysts have accepted it as a performance measure.  FFO is presented to assist investors in analyzing the performance of the Company.  The Company reports FFO in addition to net income applicable to common shareholders and net cash provided by operating activities.  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 and depreciation and amortization.  The Company has adopted the definition suggested by the National Association of Real Estate Investment Trusts ("NAREIT").  The Company defines FFO as net income computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of property plus real estate related depreciation and amortization, and after adjustments for unconsolidated joint ventures.  FFO does not represent cash flows 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.

(Table Follows)

Urstadt Biddle Properties Inc. (NYSE: UBA and UBP)
Funds from Operations
Six Months and Three Months Ended April 30, 2014 and 2013
 (in thousands, except per share data)



 
  
Six Months Ended
April 30,
    
Three Months Ended
April 30, 
 
  
2014
    
2013
    
2014
    
2013
  
Net Income Applicable to Common and Class A Common Stockholders
  
$
18,646
    
$
2,380
    
$
2,881
    
$
3,086
  
 
                                
Real property depreciation
    
7,697
      
6,507
      
3,921
      
3,282
  
Amortization of tenant improvements and allowances
    
1,450
      
1,597
      
781
      
803
  
Amortization of deferred leasing costs
    
252
      
211
      
140
      
108
  
Depreciation and amortization on discontinued operations
    
-
      
33
      
-
      
17
  
Depreciation and amortization on unconsolidated joint ventures
    
576
      
450
      
314
      
262
  
(Gain)/loss on sale of asset
    
(12,612
)
    
175
      
-
      
96
  
Funds from Operations Applicable to Common and Class A Common Stockholders
  
$
16,009
    
$
11,353
    
$
8,037
    
$
7,654
  
 
                                
Funds from Operations (Diluted) Per Share:
                                
Common
  
$
.46
    
$
.33
    
$
.23
    
$
.22
  
Class A Common
  
$
.52
    
$
.37
    
$
.26
    
$
.25
  


The following table reconciles the company's net income available to Common and Class A Common Stockholders to Funds From Operations after removing the preferred stock redemption charges, excess preferred stock dividends and acquisition costs for the six months and three months ended April 30, 2014 (Note 1).

Reconciliation of Net Income Available to Common and Class A Common Stockholders To Recurring Funds From Operations:
  
Six Months Ended
April 30,
    
Three Months Ended
April 30,
  
 
  
2014
    
2013
    
2014
    
2013
  
Net Income Applicable to Common and Class A Common Stockholders
  
$
18,646
    
$
2,380
    
$
2,881
    
$
3,086
  
Add: Redemption of preferred stock charges
    
-
      
4,165
      
-
      
406
  
Add: Acquisition costs
    
413
      
278
      
42
      
125
  
Add: Excess preferred stock dividends (Note 1)
    
-
      
952
      
-
      
476
  
Net Income Applicable to Common and Class A Common Stockholders
    
19,059
      
7,775
      
2,923
      
4,093
  
 
                                
Real property depreciation
    
7,697
      
6,507
      
3,921
      
3,282
  
Amortization of tenant improvements and allowances
    
1,450
      
1,597
      
781
      
803
  
Amortization of deferred leasing costs
    
252
      
211
      
140
      
108
  
Depreciation and amortization on discontinued operations
    
-
      
33
      
-
      
17
  
Depreciation and amortization on unconsolidated joint ventures
    
576
      
450
      
314
      
262
  
(Gain)/loss on sale of asset
    
(12,612
)
    
175
      
-
      
96
  
Funds from Operations Applicable to Common and Class A Common Stockholders
  
$
16,422
    
$
16,748
    
$
8,079
    
$
8,661
  
 
                                
Funds from Operations (Diluted) Per Share:
                                
Common
  
$
.47
    
$
.49
    
$
.23
    
$
.25
  
Class A Common
  
$
.53
    
$
.54
    
$
.26
    
$
.28
  

Note 1 – The Company sold preferred stock in October of 2012 for the main purpose of redeeming its Series E and Series C preferred stock.  The company redeemed the Series E on November 21, 2012 and redeemed the Series C preferred stock in various stages through May of 2013.  The company incurred excess preferred stock dividends of approximately $476,000 in each of the first and second quarters of fiscal 2013 as a result of having the new series of preferred stock outstanding prior to being able to redeem the series C preferred stock.

Urstadt Biddle Properties Inc. (NYSE: UBA and UBP)
April 30, 2014
 (in thousands)
Balance Sheet Highlights
  
   
 
(in thousands)
  
   
 
 
  
April 30,
2014
    
October 31,
2013
  
 
  
(Unaudited)
    
 
 
  
   
 
Assets
  
   
 
Cash and Cash Equivalents
  
$
8,586
    
$
2,945
  
 
                
Real Estate investments before accumulated depreciation
  
$
773,475
    
$
732,159
  
 
                
Investments in and advances to unconsolidated joint ventures
  
$
39,028
    
$
31,432
  
 
                
Total Assets
  
$
696,460
    
$
650,026
  
 
                
Liabilities
                
Revolving credit lines
  
$
36,300
    
$
9,250
  
 
                
Mortgage notes payable and other loans
  
$
180,040
    
$
166,246
  
 
                
Total liabilities
  
$
233,964
    
$
192,269
  
 
                
Redeemable Noncontrolling Interests
  
$
12,097
    
$
11,843
  
 
                
Total Stockholders' Equity
  
$
450,399
    
$
445,914