EX-99.2 4 q2072402.txt 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 -------------------- -------------------- Investments in Real Estate $ 696,414 $ 652,169 Accumulated Depreciation (34,121) (28,031) Property Held for Sale 10,131 3,549 ---------------- ---------------- Rental Property, Net 672,424 627,687 Other Assets 44,107 40,849 ---------------- ---------------- Total Assets $ 716,531 $ 668,536 ================ ================ Mortgage Notes Payable $ 312,918 $ 345,047 Revolving Credit Facilities 35,893 27,409 Other Liabilities 20,711 17,813 ---------------- ---------------- Total Liabilities 369,522 390,269 Stockholders' Equity 347,009 278,267 ---------------- ---------------- Total Liabilities and Stockholders' Equity $ 716,531 $ 668,536 ================ ================