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 First Quarter Operating Results For
Fiscal 2019
Greenwich, Connecticut, March 8, 2019 -- Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real estate investment trust, today reported its operating results for the first quarter ended January 31, 2019.
Net income applicable to Class A Common and Common stockholders for its first quarter of fiscal 2019 was $5,854,000 or
$0.16 per diluted Class A Common share and $0.14 per diluted Common share compared to $4,921,000 or $0.13 per diluted Class A Common share and $0.12 per diluted Common share in last year’s first quarter.
Funds from operations (“FFO”) for the first quarter of fiscal 2019 was $13,537,000 or $0.36 per diluted Class A Common
share and $0.32 per diluted Common share compared with $12,250,000 or $0.33 per diluted Class A Common share and $0.29 per diluted Common share in last year’s first quarter.
At January 31, 2019, the company’s consolidated properties were 92.3% leased (versus 93.2% at the end of fiscal 2018) and
90.7% occupied (versus 91.7% at the end of fiscal 2018). The drop in the company’s leased rate in the first quarter predominantly resulted from the company’s purchase of the Lakeview Plaza Shopping Center in December 2018. Lakeview was purchased at
a very good price from a lender which had foreclosed on the property. Lakeview has 49,000 square feet vacant, which once leased, will provide the company a significant additional return on its investment. The company currently has 352,000 square
feet of vacancy in its consolidated portfolio, 65,000 square feet of which is in the lease negotiation stage. In addition, the company is negotiating letters of intent with potential tenants on another 121,000 square feet of vacant space. Also at
January 31, 2019 the leased percentage treats as leased, and the January 31, 2019 occupancy percentage treats as unoccupied, 65,700 square feet of retail space (1.4% of our consolidated square footage) formerly ground leased by Toys R’ Us and Babies
R’ Us at the company’s Danbury Square shopping center in Danbury, CT. Toys R’ Us and Babies R’ Us went bankrupt in fiscal 2017, and this ground lease was purchased from Toys R’ Us and Babies R’ Us and assumed by a real estate investor in August
2018. The lease rate for the 65,700 square foot space was and remains at $0 for the duration of the lease, and the company did not have any other leases with Toys R’ Us or Babies R’ Us, so the company’s cash flow was not impacted by the bankruptcy
of Toys R’ Us and Babies R’ Us. As of the date of this press release, the company has not been informed by the new owner of the lease which operator will occupy the space.
Both the percentage of property leased and the percentage of property occupied
referenced in the preceding paragraph exclude the company’s unconsolidated joint ventures. At January 31, 2019, the company had equity interests in seven unconsolidated joint ventures (751,000 square feet), which were 96.6% leased (96.3% at
October 31, 2018).
Commenting on the quarter’s operating results, Willing L. Biddle, President and CEO of the company, said “We are pleased
to report that we had a very good operating quarter. Our FFO increased by 10.5% on a dollar value basis and 9.9% on a Class A Common share basis when compared with our operating results in last year’s first quarter. This increase was the result of
net operating income generated from property acquisitions in fiscal 2018 and the first quarter of fiscal 2019, as well as organic net operating income growth in our existing portfolio of investment properties. In addition, this increase was
bolstered by the sale of our small marketable securities portfolio in this first quarter of fiscal 2019, which resulted in a gain of $403,000. We are very pleased that our FFO payout ratio improved again this quarter, dipping below 80%, as we know
our investors greatly value the safety and consistent growth of our dividend through all types of economic cycles.”
Mr. Biddle continued……. “In the first quarter, we closed on the acquisition of Lakeview Plaza Shopping Center located in
Brewster, NY. Lakeview Plaza is a 177,000 square feet shopping center that is anchored by a 45,000 square foot Acme Supermarket. The property consists of five buildings on a 23-acre site. The property is currently 73% leased to a diverse group of
local, regional, and national tenants. Notable tenants at the property include Acme Market, Rite-Aid, Supercuts, M&T Bank, KeyBank and Burger King. We were able to acquire the property at a significant discount to replacement cost from a lender
which had obtained the property via foreclosure. We anticipate having to invest approximately $6 to $8 million over our initial purchase price to complete the rebuilding of a retaining wall that runs the length of the back of the property and also
to lease the vacancies in the property. Our purchase price, plus the additional capital we will need to invest for improvements and re-tenanting, represents an approximate 8% yield on the existing cash flow of the shopping center. If we are able
to lease the vacant 49,000 square feet, we could add another $1-1.3 million to the cash flow, which would improve our investment return to above 13%. We continue to actively look to acquire investment properties meeting our geographic and financial
parameters.”
Urstadt Biddle Properties Inc. is a self-administered equity real estate investment trust which owns
or has equity interests in 85 properties containing approximately 5.3 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 196 consecutive quarters of uninterrupted dividends to its shareholders since its inception and has raised total dividends to its shareholders for the last 25 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)
First quarter 2019 results (Unaudited)
(in thousands, except per share data)
| |
|
Three Months Ended
|
|
| |
|
January 31,
|
|
| |
|
2019
|
|
|
2018
|
|
| |
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Base rents
|
|
$
|
24,778
|
|
|
$
|
23,584
|
|
|
Recoveries from tenants
|
|
|
8,452
|
|
|
|
8,207
|
|
|
Other income
|
|
|
1,225
|
|
|
|
1,204
|
|
|
Total Revenues
|
|
|
34,455
|
|
|
|
32,995
|
|
| |
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
Property operating
|
|
|
5,864
|
|
|
|
6,306
|
|
|
Property taxes
|
|
|
5,913
|
|
|
|
5,147
|
|
|
Depreciation and amortization
|
|
|
6,940
|
|
|
|
6,949
|
|
|
General and administrative
|
|
|
2,654
|
|
|
|
2,419
|
|
|
Provision for tenant credit losses
|
|
|
254
|
|
|
|
210
|
|
|
Directors' fees and expenses
|
|
|
108
|
|
|
|
102
|
|
|
Total Operating Expenses
|
|
|
21,733
|
|
|
|
21,133
|
|
| |
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
12,722
|
|
|
|
11,862
|
|
| |
|
|
|
|
|
|
|
|
|
Non-Operating Income (Expense):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(3,578
|
)
|
|
|
(3,423
|
)
|
|
Equity in net income from unconsolidated joint ventures
|
|
|
342
|
|
|
|
560
|
|
|
Gain on sale of marketable securities
|
|
|
403
|
|
|
|
-
|
|
|
Interest, dividends and other investment income
|
|
|
129
|
|
|
|
80
|
|
| |
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
10,018
|
|
|
|
9,079
|
|
| |
|
|
|
|
|
|
|
|
|
Noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
(1,101
|
)
|
|
|
(1,095
|
)
|
|
Net income attributable to Urstadt Biddle Properties Inc.
|
|
|
8,917
|
|
|
|
7,984
|
|
|
Preferred stock dividends
|
|
|
(3,063
|
)
|
|
|
(3,063
|
)
|
| |
|
|
|
|
|
|
|
|
|
Net Income Applicable to Common and Class A Common Stockholders
|
|
$
|
5,854
|
|
|
$
|
4,921
|
|
| |
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share:
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Per Class A Common Share:
|
|
$
|
0.16
|
|
|
$
|
0.13
|
|
|
Per Common Share:
|
|
$
|
0.14
|
|
|
$
|
0.12
|
|
| |
|
|
|
|
|
|
|
|
|
Weighted Average Number of Shares Outstanding (Diluted):
|
|
|
|
|
|
|
|
|
|
Class A Common and Class A Common Equivalent
|
|
|
29,547
|
|
|
|
29,492
|
|
|
Common and Common Equivalent
|
|
|
9,199
|
|
|
|
9,058
|
|
Results of Operations
The following information summarizes our results of operations for the three months ended January 31, 2019 and 2018 (amounts
in thousands):
| |
|
Three Months Ended
|
|
|
|
|
|
|
|
| |
|
January 31,
|
|
|
|
|
|
|
|
|
Change Attributable to
|
|
|
Revenues
|
|
2019
|
|
|
2018
|
|
|
Increase (Decrease)
|
|
|
% Change
|
|
|
Property Acquisitions/Sales
|
|
|
Properties Held In Both Periods (Note
1)
|
|
|
Base rents
|
|
$
|
24,778
|
|
|
$
|
23,584
|
|
|
$
|
1,194
|
|
|
|
5.1
|
%
|
|
$
|
831
|
|
|
$
|
363
|
|
|
Recoveries from tenants
|
|
|
8,452
|
|
|
|
8,207
|
|
|
|
245
|
|
|
|
3.0
|
%
|
|
|
396
|
|
|
|
(151
|
)
|
|
Other income
|
|
|
1,208
|
|
|
|
1,204
|
|
|
|
4
|
|
|
|
0.3
|
%
|
|
|
37
|
|
|
|
(33
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating
|
|
|
5,864
|
|
|
|
6,306
|
|
|
|
(442
|
)
|
|
|
(7.0
|
)%
|
|
|
342
|
|
|
|
(784
|
)
|
|
Property taxes
|
|
|
5,913
|
|
|
|
5,147
|
|
|
|
766
|
|
|
|
14.9
|
%
|
|
|
197
|
|
|
|
569
|
|
|
Depreciation and amortization
|
|
|
6,940
|
|
|
|
6,949
|
|
|
|
(9
|
)
|
|
|
(0.1
|
)%
|
|
|
139
|
|
|
|
(148
|
)
|
|
General and administrative
|
|
|
2,654
|
|
|
|
2,419
|
|
|
|
235
|
|
|
|
9.7
|
%
|
|
|
n/a
|
|
|
|
n/a
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Operating Income/Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
3,578
|
|
|
|
3,423
|
|
|
|
155
|
|
|
|
4.5
|
%
|
|
|
40
|
|
|
|
115
|
|
|
Interest, dividends, and other investment income
|
|
|
129
|
|
|
|
80
|
|
|
|
49
|
|
|
|
61.3
|
%
|
|
|
n/a
|
|
|
|
n/a
|
|
Note 1 – Properties held in both periods includes only properties owned for the
entire periods of 2019 and 2018 and for interest expense the amount also includes parent company interest expense. All other properties are included in the property acquisition/sales column. There are no properties excluded from the analysis.
Base rents increased by 5.1% to $24.8 million for the three month period ended
January 31, 2019 as compared with $23.6 million in the comparable period of 2018. The change in base rent and the changes in other income statement line items analyzed in the table above were attributable to:
Property Acquisitions and Properties Sold:
In fiscal 2018, we purchased three properties totaling 53,700 square feet of GLA. In the first three months of fiscal
2019, we purchased one property totaling 177,000 square feet. These properties accounted for all of the revenue and expense changes attributable to property acquisitions and sales in the three months ended January 31, 2019 when compared with fiscal
2018.
Properties Held in Both Periods:
Revenues
Base Rent
The increase in base rents for the three month period ended January 31, 2019, when compared to the corresponding prior
period, was predominantly caused by new leasing activity at several properties held in both periods and a lease renewal with a grocery-store tenant at a significantly higher rent then the expiring period rent, both of which created a positive
variance in base rent.
In the first three months of fiscal 2019, we leased or renewed approximately 170,000 square feet (or approximately 3.7%
of total consolidated property leasable area). At January 31, 2019, the Company’s consolidated properties were 92.3% leased (93.2% leased at October 31, 2018).
Tenant Recoveries
In the three month period ended January 31, 2019, recoveries from tenants (which represent reimbursements from tenants
for operating expenses and property taxes) decreased by $151,000 when compared with the corresponding prior period. This decrease was a result of a decrease in property operating expenses predominantly related to a decrease in snow removal costs at
our properties owned in both periods partially offset by an increase in property tax expense as a result of an increase in property tax assessments.
Expenses
Property
Operating
In the three month period ended January 31, 2019, property operating expenses
decreased by $784,000 when compared with the corresponding prior period, predominantly as a result of a decrease in snow removal costs at our properties owned in both periods.
Property
Taxes
In the three month period ended January 31, 2019, property taxes increased by
$569,000 when compared with the corresponding prior period, as a result of an increase in property tax assessments for a number of our properties owned in both periods.
Interest
In the three month period ended January 31, 2019, interest expense increased by
$115,000, when compared with the corresponding prior period as a result of the Company having a larger balance drawn on its Facility in the first three months of fiscal 2019 when compared with the corresponding prior period.
Depreciation
and Amortization
Depreciation and amortization was relatively unchanged in the three month period ended January 31, 2019, when compared
with the corresponding prior period.
General and Administrative Expenses
General and administrative expense increased by $235,000 in the three month period
ended January 31, 2019 when compared with the corresponding prior period predominantly as a result of normal salary increases and bonuses for our employees being larger than the prior period.
Non-GAAP Financial Measure
Funds from Operations (“FFO”)
We consider Funds from Operations (“FFO”) to be an additional measure of our operating performance. We report FFO in
addition to net income applicable to common stockholders and net cash provided by operating activities. Management has adopted the definition suggested by The National Association of Real Estate Investment Trusts (“NAREIT”) and defines FFO to mean
net income (computed in accordance with GAAP) excluding gains or losses from sales of property, plus real estate-related depreciation and amortization and after adjustments for unconsolidated joint ventures.
Management considers FFO a meaningful, additional measure of operating performance because it primarily excludes the
assumption that the value of the Company’s 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. It is
helpful as it excludes various items included in net income that are not indicative of our operating performance, such as gains (or losses) from sales of property and depreciation and amortization. However, FFO:
|
●
|
does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally
reflects all cash effects of transactions and other events in the determination of net income); and
|
|
●
|
should not be considered an alternative to net income as an indication of our performance.
|
FFO as defined by us may not be comparable to similarly titled items reported by other real estate investment trusts due
to possible differences in the application of the NAREIT definition used by such REITs. The table below provides a reconciliation of net income applicable to Common and Class A Common Stockholders in accordance with GAAP to FFO for the three month
periods ended January 31, 2019 and 2018 (amounts in thousands):
(Table Follows)
Urstadt Biddle Properties Inc. (NYSE: UBA and UBP)
First quarter Ended 2019 Results
(in thousands, except per share data)
|
Reconciliation of Net Income Available to Common and Class A Common Stockholders To Funds From
Operations:
|
|
Three Months Ended
|
|
| |
|
January 31,
|
|
| |
|
2019
|
|
|
2018
|
|
|
Net Income Applicable to Common and Class A Common Stockholders
|
|
$
|
5,854
|
|
|
$
|
4,921
|
|
| |
|
|
|
|
|
|
|
|
|
Real property depreciation
|
|
|
5,664
|
|
|
|
5,458
|
|
|
Amortization of tenant improvements and allowances
|
|
|
883
|
|
|
|
1,042
|
|
|
Amortization of deferred leasing costs
|
|
|
393
|
|
|
|
426
|
|
|
Depreciation and amortization on unconsolidated joint ventures
|
|
|
380
|
|
|
|
403
|
|
|
Loss on sale of property in unconsolidated joint venture
|
|
|
363
|
|
|
|
-
|
|
| |
|
|
|
|
|
|
|
|
|
Funds from Operations Applicable to Common and Class A Common Stockholders
|
|
$
|
13,537
|
|
|
$
|
12,250
|
|
| |
|
|
|
|
|
|
|
|
|
Urstadt Biddle Properties Inc.
|
|
|
Balance Sheet Highlights
|
|
|
(in thousands)
|
|
| |
|
|
|
|
|
|
| |
|
January 31,
|
|
|
October 31,
|
|
| |
|
2019
|
|
|
2018
|
|
| |
|
(Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
$
|
13,142
|
|
|
$
|
10,285
|
|
| |
|
|
|
|
|
|
|
|
|
Real Estate investments before accumulated depreciation
|
|
$
|
1,134,678
|
|
|
$
|
1,118,075
|
|
| |
|
|
|
|
|
|
|
|
|
Investments in and advances to unconsolidated joint ventures
|
|
$
|
36,194
|
|
|
$
|
37,434
|
|
| |
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
1,018,458
|
|
|
$
|
1,008,233
|
|
| |
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Revolving credit line
|
|
$
|
44,595
|
|
|
$
|
28,595
|
|
| |
|
|
|
|
|
|
|
|
|
Mortgage notes payable and other loans
|
|
$
|
292,129
|
|
|
$
|
293,801
|
|
| |
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
$
|
367,355
|
|
|
$
|
347,834
|
|
| |
|
|
|
|
|
|
|
|
|
Redeemable Noncontrolling Interests
|
|
$
|
78,405
|
|
|
$
|
78,258
|
|
| |
|
|
|
|
|
|
|
|
|
Preferred Stock
|
|
$
|
190,000
|
|
|
$
|
190,000
|
|
| |
|
|
|
|
|
|
|
|
|
Total Stockholders’ Equity
|
|
$
|
572,698
|
|
|
$
|
582,141
|
|
