Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real
estate investment trust, today reported its operating results for
the quarter ended July 31, 2022 and provided information regarding
financial and operational activities.
FINANCIAL HIGHLIGHTS
FOR THIRD QUARTER FISCAL 2022
- We repurchased in the third quarter 310,473 shares of our Class
A Common stock at an average price per share of $17.43 and 3,071
shares of our Common stock at an average price per share of $18.17
in open market transactions. Included in the above were 45,525
shares of Class A Common and 1,198 shares of Common Stock that
settled in August 2022.
- $6.6 million net income attributable to common stockholders
($0.17 per diluted Class A Common share).
- $14.6 million of Funds from Operations (“FFO”) ($0.38 per
diluted Class A Common share).(1)
- 92.1% of our consolidated portfolio Gross Leasable Area (“GLA”)
was leased at July 31, 2022, an increase of 0.2% from the end of
fiscal 2021.
- 7.1% average increase in base rental rates on 209,000 square
feet of lease renewals signed in our third quarter of fiscal
2022.
- 17.3% average decrease in base rental rates on 45,000 square
feet of new leases signed in our third quarter of fiscal 2022. The
decrease was predominantly related to a new lease with a national
furniture company in 20,000 square feet of second floor space at
our Ridgeway Shopping Center located in Stamford, CT. This lease
replaced Modell’s Sporting Goods, which filed for bankruptcy and
vacated the property in 2020, and the base rent on this lease is
27% below Modell’s last prior rent. With this lease removed, the
decrease is 8.9%.
- On July 15, 2022, we paid a $0.2375 per share quarterly cash
dividend on our Class A Common Stock and a $0.2145 per share
quarterly cash dividend on our Common Stock.
- We have $12.2 million of cash and cash equivalents currently on
our balance sheet.
- We have $114 million currently available on our unsecured
revolving credit facility.
- We have no material mortgage debt maturing until 2024.
(1) A reconciliation of GAAP net income to FFO is provided at
the end of this press release.
Dividend
Declarations
- On September 7, 2022, the company’s Board of Directors declared
a quarterly dividend of $0.2375 per Class A Common share and
$0.2145 per Common share, which will be paid on October 14, 2022 to
holders of record on September 30, 2022. As a REIT, the company is
required to distribute at least 90% of its taxable income to its
stockholders. Based on the company’s estimates, these levels of
common stock dividends, when combined with the company’s preferred
stock dividends, will satisfy that requirement (excluding any gains
on sales of property). The Board will continue to consider the
residual impact of COVID-19 on the company, and will make future
dividend decisions based on this and other information available to
it.
- In addition, in September 2022, the Board declared the regular
contractual quarterly dividend with respect to each of the
company’s Series H and Series K cumulative redeemable preferred
stock, which will be paid on October 28, 2022 to shareholders of
record on October 14, 2022.
Commenting on the operating results, Willing L. Biddle,
President and CEO of Urstadt Biddle Properties Inc., said “As the
Covid-19 pandemic’s disruption to the shopping center business gets
further in the rear view mirror, we are encouraged to see a
continued rebound in our tenants’ businesses and robust demand for
vacant space at our properties. This quarter, we renewed 209,000
square feet of existing tenant leases and signed 45,000 square feet
of new leases in our portfolio, but the absorption of two larger
vacancies caused our percentage of our consolidated portfolio
leased to remain at 92.1% as of July 31, 2022. Renewal rents
increased by 7.1%, our fifth consecutive quarterly increase. The
average of rental rates on new leases decreased this quarter by
17.3%, due in significant part to two new leases at our Ridgeway
Shopping Center in Stamford, CT. We entered into a new lease for a
20,000 square foot second floor retail space to Ashley Furniture as
well as a new lease for a 3,000 square foot restaurant for space
where the prior long-term tenant had been paying an above-market
rent. Notwithstanding the impact of these two leases, we believe
the increasing demand for space coupled with decreasing supply will
have a positive effect on our occupancy and rents going forward.
Our leasing and management teams are very busy working to deliver
space for our new tenants, and we have a strong pipeline of new
leases that include 127,000 square feet in the lease negotiation
phase and another 109,000 square feet that is subject to letters of
intent. We are grateful for the tremendous efforts and perseverance
of our team as well as that of our tenants, who have worked
together to get through the last two plus years.”
Mr. Biddle continued…. “Our earnings and FFO have returned to
pre-pandemic levels and there is still room to grow the income of
our existing portfolio as we fill our vacancies with new tenants.
Our collection rate on rents billed has returned to pre-pandemic
levels and most of our tenants are able to pay their rent without
assistance. Our strong balance sheet and liquidity are the
underpinnings of our company’s success and well-located,
grocery-anchored community and neighborhood shopping centers have
proven to be solid investments in good times and bad. Due to our
long-term strategy, 87% of our properties, measured by square
footage, are anchored by grocery stores, wholesale clubs or
pharmacies, and these businesses have remained solid throughout the
pandemic. During our third quarter, we capitalized on a significant
dislocation between the current value of grocery-anchored shopping
centers in the private market versus the price of our company’s
stock. We repurchased 310,473 shares of our Class A Common stock at
an average price per share of $17.43 and 3,071 shares of our Common
stock at an average price per share of $18.17, which we believe was
a good use of our cash and a way to add value to our
stockholders.”
Net income applicable to Class A Common and Common stockholders
for the third quarter of fiscal 2022 was $6,630,000 or $0.17 per
diluted Class A Common share and $0.15 per diluted Common share,
compared to net income of $18,375,000 or $0.48 per diluted Class A
Common share and $0.43 per diluted Common share in last year’s
third quarter. Net income attributable to Class A Common and Common
stockholders for the first nine months of fiscal 2022 was
$19,136,000 or $0.50 per diluted Class A Common share and $0.45 per
diluted Common share, compared to $27,475,000 or $0.72 per diluted
Class A Common share and $0.64 per diluted Common share in the
first nine months of fiscal 2021. Net income applicable to Class A
Common and Common stockholders for the nine months and three months
ended July 31, 2021, includes a gain on property sales of $12.2
million, or $0.32 per Class A Common share and $11.8 million, or
$0.31 per Class A Common share, respectively.
FFO for the third quarter of fiscal 2022 was $14,642,000 or
$0.38 per diluted Class A Common share and $0.34 per diluted Common
share, compared with $14,004,000 or $0.36 per diluted Class A
Common share and $0.33 per diluted Common share in last year’s
third quarter. For the first nine months of fiscal 2022, FFO
amounted to $41,807,000 or $1.08 per diluted Class A Common share
and $0.98 per diluted Common share, compared to $38,107,000 or
$1.00 per diluted Class A Common share and $0.89 per diluted Common
share in the corresponding period of fiscal 2021.
Urstadt Biddle Properties Inc. is a self-administered equity
real estate investment trust which owns or has equity interests in
77 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 210 consecutive quarters
of uninterrupted dividends to its shareholders since its
inception.
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)
nine and Three Months Ended
July 31, 2022 and 2021 Results (Unaudited)
(in thousands, except per share
data)
Nine Months Ended
Three Months Ended
July 31,
July 31,
2022
2021
2022
2021
Revenues
Lease income
$102,636
$97,329
$33,893
$33,051
Lease termination income
691
801
631
96
Other income
3,712
3,403
960
1,183
Total Revenues
107,039
101,533
35,484
34,330
Operating Expenses
Property operating
18,915
17,733
5,514
5,284
Property taxes
17,787
17,785
5,976
6,009
Depreciation and amortization
22,360
21,773
7,644
7,063
General and administrative
7,673
6,876
2,485
2,139
Directors' fees and expenses
283
277
82
79
Total Operating Expenses
67,018
64,444
21,701
20,574
Operating Income
40,021
37,089
13,783
13,756
Non-Operating Income (Expense):
Interest expense
(9,750)
(10,062)
(3,186)
(3,329)
Equity in net income from unconsolidated
joint ventures
814
1,025
224
365
Gain (loss) on sale of properties
768
12,214
-
11,808
Interest, dividends and other investment
income
216
171
103
75
Net Income
32,069
40,437
10,924
22,675
Noncontrolling interests:
Net income attributable to noncontrolling
interests
(2,695)
(2,724)
(881)
(887)
Net income attributable to Urstadt Biddle
Properties Inc.
29,374
37,713
10,043
21,788
Preferred stock dividends
(10,238)
(10,238)
(3,413)
(3,413)
Net Income Applicable to Common and
Class A Common Stockholders
$19,136
$27,475
$6,630
$18,375
Diluted Earnings Per Share:
Per Common Share:
$0.45
$0.64
$0.15
$0.43
Per Class A Common Share:
$0.50
$0.72
$0.17
$0.48
Weighted Average Number of Shares
Outstanding (Diluted):
Common and Common Equivalent
9,766
9,564
9,794
9,697
Class A Common and Class A Common
Equivalent
29,800
29,722
29,801
29,828
Results of Operations
The following information summarizes our results of operations
for the nine months and three months ended July 31, 2022 and 2021
(amounts in thousands):
Nine Months Ended
Change Attributable to
July 31,
Increase
Property
Properties Held In
Revenues
2022
2021
(Decrease)
% Change
Acquisitions/Sales
Both Periods (Note 1)
Base rents
$77,056
$74,802
$2,254
3.0%
$842
$1,412
Recoveries from tenants
25,768
27,043
(1,275)
(4.7)%
165
(1,440)
Uncollectable amounts in lease income
(172)
(1,379)
1,207
(87.5)%
-
1,207
ASC Topic 842 cash basis lease income
reversal (including straight-line rent)
(16)
(3,137)
3,121
(99.5)%
-
3,121
Total lease income
102,636
97,329
Lease termination
691
801
(110)
(13.7)%
-
(110)
Other income
3,712
3,403
309
9.1%
6
303
Operating Expenses
Property operating
18,915
17,733
1,182
6.7%
32
1,150
Property taxes
17,787
17,785
2
-
92
(90)
Depreciation and amortization
22,360
21,773
587
2.7%
487
100
General and administrative
7,673
6,876
797
11.6%
n/a
n/a
Non-Operating Income/Expense
Interest expense
9,750
10,062
(312)
(3.1)%
-
(312)
Interest, dividends, and other investment
income
216
171
45
26.3%
n/a
n/a
Three Months Ended
Change Attributable to
July 31,
Increase
Property
Properties Held In
Revenues
2022
2021
(Decrease)
% Change
Acquisitions/Sales
Both Periods (Note 1)
Base rents
$25,860
$24,790
$1,070
4.3%
$682
$388
Recoveries from tenants
8,111
8,251
(140)
(1.7)%
118
(258)
Uncollectable amounts in lease income
(21)
-
(21)
(100.0)%
-
(21)
ASC Topic 842 cash basis lease income
reversal (including straight-line rent)
(57)
10
(67)
(670.0)%
-
(67)
Total lease income
33,893
33,051
Lease termination
631
96
535
557.3%
-
535
Other income
960
1,183
(223)
(18.9)%
2
(225)
Operating Expenses
Property operating
5,514
5,284
230
4.4%
57
173
Property taxes
5,976
6,009
(33)
(0.5)%
41
(74)
Depreciation and amortization
7,644
7,063
581
8.2%
256
325
General and administrative
2,485
2,139
346
16.2%
n/a
n/a
Non-Operating Income/Expense
Interest expense
3,186
3,329
(143)
(4.3)%
-
(143)
Interest, dividends, and other investment
income
103
75
28
37.3%
n/a
n/a
Note 1 – Properties held in both periods includes only
properties owned for the entire periods of 2022 and 2021 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 3.0% to $77.1 million for the nine
months ended July 31, 2022, as compared with $74.8 million in the
corresponding period of 2021. Base rents increased by 4.3% to $25.9
million for the three months ended July 31, 2022, as compared with
$24.8 million in the corresponding period of 2021. 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 the first nine months of fiscal 2022, we acquired one
property totaling 188,000 square feet and sold three properties
totaling 14,300 square feet. In fiscal 2021, we sold two properties
totaling 105,000 square feet. These properties accounted for all of
the revenue and expense changes attributable to property
acquisitions and sales in the nine and three month periods ended
July 31, 2022, when compared with the corresponding periods in
fiscal 2021.
Properties Held in Both
Periods:
Revenues
Base Rent
For properties held in both periods, base rent for the nine and
three month periods ended July 31, 2022 increased by $1.4 million
and $388,000, respectively, when compared with the corresponding
prior period. This positive variance in the nine and three month
periods ended July 31, 2022 when compared with the corresponding
prior periods was primarily a result of new leasing completed after
the first and second quarters of fiscal 2021.
In the first nine months of fiscal 2022, we leased or renewed
approximately 762,000 square feet (or approximately 16.6% of total
GLA). At July 31, 2022, our consolidated properties were 92.1%
leased (91.9% leased at October 31, 2021).
Tenant Recoveries In the nine and
three month periods ended July 31, 2022, recoveries from tenants
(which represent reimbursements from tenants for operating expenses
and property taxes) decreased by a net $1.4 million and $258,000,
respectively, when compared with the corresponding prior periods.
The decrease in tenant recoveries was the result of an
under-accrual adjustment in the first quarter of fiscal 2021. We
completed the 2020 annual reconciliations for both common area
maintenance and real estate taxes in the first quarter of fiscal
2021, and those reconciliations resulted in us billing our tenants
more than we had anticipated and accrued for in the prior period.
This increased tenant reimbursement income in the first quarter of
fiscal 2021, and caused a negative variance in the first quarter of
fiscal 2022. This net decrease was offset by an increase in
property operating expenses in the nine and three month periods
ended July 31, 2022, when compared to the corresponding prior
periods, predominantly related to insurance, environmental costs
and roof repairs.
Uncollectable Amounts in Lease
Income In the nine months ended July 31, 2022, uncollectable
amounts in lease income decreased by $1.2 million. In the second
quarter of fiscal 2020, we significantly increased our
uncollectable amounts in lease income based on our assessment of
the collectability of existing non-credit small shop tenants'
receivables given the on-set of the COVID-19 pandemic in March
2020. A number of non-credit small shop tenants' businesses were
deemed non-essential by the states in which they operate and forced
to close for a portion of the second and third quarters of fiscal
2020. This placed stress on our small shop tenants and made it
difficult for many of them to pay their rents when due. This stress
continued through the first half of fiscal 2021. Our assessment was
that any billed but unpaid rents would likely be uncollectable.
During the nine months ended July 31, 2022, many of our tenants
experienced business improvement as regulatory restrictions
continued to ease and individuals continued to return to
pre-pandemic activities. As a result, the uncollectable amounts in
lease income declined during such period, when compared with the
corresponding period of the prior year. There was no significant
change in uncollectable amounts in lease income for the three
months ended July 31, 2022 when compared with the corresponding
prior period of fiscal 2021.
ASC Topic 842 Cash Basis Lease Income
Reversals We adopted ASC Topic 842 "Leases" at the beginning
of fiscal 2020. ASC Topic 842 requires, among other things, that if
the collectability of a specific tenant’s future lease payments as
contracted are not probable of collection, revenue recognition for
that tenant must be converted to cash-basis accounting and be
limited to the lesser of the amount billed or collected from that
tenant. In addition, any straight-line rental receivables would
need to be reversed in the period that the collectability
assessment changed to not probable. As a result of continuing to
analyze our entire tenant base, we determined that as a result of
the COVID-19 pandemic, 89 tenants' future lease payments were no
longer probable of collection. All such tenants were converted to
cash basis after our second quarter of fiscal 2020 and prior to our
third quarter of fiscal 2021. As of July 31, 2022, 33 of these 89
tenants are no longer tenants in the Company's properties. As a
result of converting these tenants to cash-basis accounting in
fiscal 2021, we reversed straight-line rent receivables in the
amount of $1.3 million and reversed billed but unpaid rents related
to cash-basis tenants of $1.9 million in the nine month periods
ended July 31, 2021. There were no significant charges related to
cash-basis tenants in the three months ended July 31, 2022 and
2021.
As of July 31, 2022, 35 tenants continue to be accounted for on
a cash basis, or approximately 3.8% of our tenants. Many of our
cash-basis tenants are now paying a larger portion of their billed
rents, which results in an increase in revenue recognition for
those tenants accounted for on a cash basis when compared with the
corresponding period of the prior year.
Expenses
Property Operating In the nine and
three month periods ended July 31, 2022, property operating
expenses increased by $1.2 million and $173,000, respectively, when
compared with the corresponding prior periods. This was primarily a
result of having higher common area maintenance expenses in the
nine and three month periods ended July 31, 2022, when compared
with the corresponding prior periods, related to insurance,
environmental costs and roof repairs.
Property Taxes In the nine and
three month periods ended July 31, 2022, property tax expenses were
relatively unchanged, when compared with the corresponding prior
periods.
Interest In the nine and three
month periods ended July 31, 2022, interest expense was relatively
unchanged, when compared with the corresponding prior periods.
Depreciation and Amortization In
the nine and three month periods ended July 31, 2022, depreciation
and amortization was relatively unchanged, when compared with the
corresponding prior periods.
General and Administrative Expenses
In the nine and three month periods ended July 31, 2022, general
and administrative expenses increased by $797,000 and $346,000,
respectively, when compared with the corresponding prior periods.
This was primarily a result of an increase in employee
compensation, state tax expense related to a capital gain for a
property we sold that was located in New Hampshire and professional
fees.
Non-GAAP Financial Measure Funds from Operations
(“FFO”)
We consider 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 to be 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 FFO 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 nine month and three month
periods ended July 31, 2022 and 2021. (Amounts in thousands)
(Table Follows)
Urstadt Biddle Properties Inc.
(NYSE: UBA and UBP)
Nine Months and Three Months
Ended July 31, 2022 and 2021
(in thousands, except per share
data)
Reconciliation of Net Income Available to
Common and Class A Common Stockholders To Funds From
Operations:
Nine Months Ended
Three Months Ended
July 31,
July 31,
2022
2021
2022
2021
Net Income Applicable to Common and Class
A Common Stockholders
$19,136
$27,475
$6,630
$18,375
Real property depreciation
17,501
17,198
5,879
5,737
Amortization of tenant improvements and
allowances
3,154
3,312
1,031
960
Amortization of deferred leasing costs
1,652
1,209
716
363
Depreciation and amortization on
unconsolidated joint ventures
1,132
1,126
386
376
(Gain)/loss on sale of property
(768)
(12,213)
-
(11,807)
Funds from Operations Applicable to Common
and Class A Common Stockholders
$41,807
$38,107
$14,642
$14,004
Funds from Operations (Diluted) Per
Share:
Class A Common
$1.08
$1.00
$0.38
$0.36
Common
$0.98
$0.89
$0.34
$0.33
FFO amounted to $41.8 million in the nine months ended July 31,
2022, compared to $38.1 million in the corresponding period of
fiscal 2021. The net increase in FFO is attributable, among other
things to:
Increases:
- An increase in base rent for new leasing in the portfolio after
the first quarter of fiscal 2021.
- A decrease in uncollectable amounts in lease income of $1.3
million in the nine months ended July 31, 2022 , when compared with
the corresponding prior period. We significantly increased our
uncollectable amounts in lease income based on our assessment of
the collectability of existing non-credit small shop tenants'
receivables given the onset of the COVID-19 pandemic in March 2020.
A number of non-credit small shop tenants' businesses were deemed
non-essential by the states in which they operate and forced to
close for a portion of the second and third quarters of fiscal
2020. This placed stress on our small shop tenants and made it
difficult for many of them to pay their rents when due. This stress
continued through our first quarter of fiscal 2021. Our assessment
was that any billed but unpaid rents would likely be uncollectable.
During the nine months ended July 31, 2022 , many of our tenants
continued to see signs of business improvement as regulatory
restrictions continued to ease and individuals continued to return
to pre-pandemic activities. As a result, the uncollectable amounts
in lease income declined during such period, when compared with the
corresponding period of the prior year.
- We adopted ASC Topic 842 "Leases" at the beginning of fiscal
2020. ASC Topic 842 requires, among other things, that if the
collectability of a specific tenant’s future lease payments as
contracted are not probable of collection, revenue recognition for
that tenant must be converted to cash-basis accounting and be
limited to the lesser of the amount billed or collected from that
tenant. In addition, any straight-line rental receivables would
need to be reversed in the period that the collectability
assessment changed to not probable. As a result of continuing to
analyze our entire tenant base, we determined that as a result of
the COVID-19 pandemic, 89 tenants' future lease payments were no
longer probable of collection. All such tenants were converted to
cash basis after our second quarter of fiscal 2020 and prior to our
third quarter of fiscal 2021. As of July 31, 2022, 33 of these 89
tenants are no longer tenants in the Company's properties. As a
result of converting these tenants to cash-basis accounting we
reversed straight-line rent receivables in the amount of $1.2
million and reversed billed but uncollected rents in the amount of
$1.9 million in the nine month period ended July 31, 2021. There
were no significant charges related to cash-basis tenants in the
nine months ended July 31, 2022 .
As of July 31, 2022, 35 tenants continue to be accounted for on
a cash basis, or approximately 3.8% of our tenants. Many of our
cash-basis tenants are now paying a larger portion of their billed
rents, which results in an increase in revenue recognition for
those tenants accounted for on a cash basis when compared with the
corresponding period of the prior year.
Decreases:
- A decrease in variable lease income (cost recovery income)
related to an under-accrual adjustment in recoveries from tenants
for real estate taxes and common area maintenance in the first
quarter of fiscal 2021, which increased revenue in the first
quarter of fiscal 2021 and caused a negative variance in the first
nine months of fiscal 2022.
- A $797,000 increase in general and administrative expenses
predominantly related to an increase employee compensation, state
tax expense related to a capital gain for a property we sold that
was located in New Hampshire and professional fees in the first
nine months of fiscal 2022, when compared to the corresponding
prior period.
FFO amounted to $14.6 million in the three months ended July 31,
2022, compared to $14.0 million in the corresponding period of
fiscal 2021. The net increase in FFO is attributable, among other
things to:
Increases:
- A net increase in base rent for new leasing in the portfolio
after the first quarter of fiscal 2021.
- An increase in lease termination income in three months ended
July 31, 2022 when compared with the corresponding prior period as
a result of one national tenant exercising a termination right in
their lease for which they paid a termination penalty.
Decreases:
- A $346,000 increase in general and administrative expenses
predominantly related to an increase in state tax expense related
to a capital gain for a property we sold that was located in New
Hampshire and professional fees in the three months ended July 31,
2022 , when compared to the corresponding prior period.
Non-GAAP Financial Measure Same Property Net Operating
Income
We present Same Property Net Operating Income ("Same Property
NOI"), which is a non-GAAP financial measure. Same Property NOI
excludes from Net Operating Income (“NOI”) properties that have not
been owned for the full periods presented. The most directly
comparable GAAP financial measure to NOI is operating income. To
calculate NOI, operating income is adjusted to add back
depreciation and amortization, general and administrative expense,
interest expense, amortization of above and below-market lease
intangibles and to exclude straight-line rent adjustments,
interest, dividends and other investment income, equity in net
income of unconsolidated joint ventures, and gain/loss on sale of
operating properties.
We use Same Property NOI internally as a performance measure,
and we believe Same Property NOI provides useful information to
investors regarding our financial condition and results of
operations because it reflects only those income and expense items
that are incurred at the property level. Our management also uses
Same Property NOI to evaluate property level performance and to
make decisions about resource allocations. Further, we believe Same
Property NOI is useful to investors as a performance measure
because, when compared across periods, Same Property NOI reflects
the impact on operations from trends in occupancy rates, rental
rates and operating costs on an unleveraged basis, providing
perspective not immediately apparent from income from continuing
operations. Same Property NOI excludes certain components from net
income attributable to Urstadt Biddle Properties Inc. in order to
provide results that are more closely related to a property’s
results of operations. For example, interest expense is not
necessarily linked to the operating performance of a real estate
asset and is often incurred at the corporate level as opposed to
the property level. In addition, depreciation and amortization,
because of historical cost accounting and useful life estimates,
may distort operating performance at the property level. Same
Property NOI presented by us may not be comparable to Same Property
NOI reported by other REITs that define Same Property NOI
differently.
Table Follows:
Urstadt Biddle Properties Inc.
Same Property Net Operating
Income
(In thousands, except for number of
properties and percentages)
Nine Months Ended July 31,
Three Months Ended July 31,
2022
2021
% Change
2022
2021
% Change
Same Property Operating Results:
Number of Properties (Note 1)
72
72
Revenue (Note 2)
Base Rent (Note 3)
$74,063
$74,566
(0.7)%
$24,462
$24,641
(0.7)%
Uncollectable amounts in lease income-same
property
(172)
(1,371)
(87.5)%
(20)
9
(322.2)%
ASC Topic 842 cash-basis
lease income reversal-same property
(66)
(1,882)
(96.5)%
(56)
(27)
107.4%
Recoveries from tenants
25,363
26,803
(5.4)%
7,935
8,191
(3.1)%
Other property income
1,262
359
251.5%
132
132
-
100,450
98,475
2.0%
32,453
32,946
(1.5)%
Expenses
Property operating
10,982
10,996
(0.1)%
3,180
3,276
(2.9)%
Property taxes
17,554
17,655
(0.6)%
5,876
5,957
(1.4)%
Other non-recoverable operating
expenses
1,624
1,480
9.7%
662
464
42.7%
30,160
30,131
0.1%
9,718
9,697
0.2%
Same Property Net Operating Income
$70,290
$68,344
2.8%
$22,735
$23,249
(2.2)%
Reconciliation of Same Property NOI to
Most Directly Comparable GAAP Measure:
Other reconciling
items:
Other non same-property net operating
income
1,445
882
695
132
Other Interest income
470
349
184
118
Other Dividend Income
60
36
60
36
Consolidated lease termination income
691
801
631
96
Consolidated amortization of above and
below market leases
698
455
301
165
Consolidated straight line rent income
(48)
(2,702)
7
(371)
Equity in net income of unconsolidated
joint ventures
814
1,025
224
365
Taxable REIT subsidiary income/(loss)
(180)
419
(45)
165
Solar income/(loss)
(233)
(159)
59
88
Storage income/(loss)
1,572
805
571
360
Unrealized holding gains arising during
the periods
-
-
-
-
Gain on marketable securities
-
-
-
-
Interest expense
(9,750)
(10,062)
(3,186)
(3,329)
General and administrative expenses
(7,673)
(6,876)
(2,485)
(2,139)
Uncollectable amounts in lease income
(172)
(1,380)
(20)
-
Uncollectable amounts in lease income-same
property
172
1,371
20
(9)
ASC Topic 842 cash-basis lease income
reversal
(66)
(1,882)
(56)
10
ASC Topic 842 cash-basis lease income
reversal-same property
66
1,882
56
27
Directors fees and expenses
(283)
(277)
(82)
(79)
Depreciation and amortization
(22,360)
(21,773)
(7,644)
(7,063)
Adjustment for intercompany expenses and
other
(4,212)
(3,035)
(1,101)
(954)
Total other -net
(38,989)
(40,121)
(11,811)
(12,382)
Income from continuing operations
31,301
28,223
10.9%
10,924
10,867
0.5%
Gain (loss) on sale of real estate
768
12,214
-
11,808
Net income
32,069
40,437
(20.7)%
10,924
22,675
(51.8)%
Net income attributable to noncontrolling
interests
(2,695)
(2,724)
(881)
(887)
Net income attributable to Urstadt Biddle
Properties Inc.
$29,374
$37,713
(22.1)%
$10,043
$21,788
(53.9)%
Same Property Operating Expense Ratio
(Note 4)
88.9%
93.5%
(4.7)%
87.6%
88.7%
(1.1)%
Note 1 - Includes only properties owned for the entire period of
both periods presented.
Note 2 - Excludes straight line rent, above/below market lease
rent, lease termination income.
Note 3 - Base rents for the three and nine month periods ended
July 31, 2022 are reduced by approximately $0 and $87,000,
respectively, in rents that were deferred and approximately $3,000
and $160,000, in rents that were abated because of COVID-19. Base
rents for the three and nine month periods ended July 31, 2022, are
increased by approximately $83,000 and $465,000, respectively, in
COVID-19 deferred rents that were billed and collected in the
fiscal 2022 periods.
Base rents for the three and nine month periods ended July 31,
2021 are reduced by approximately $99,000 and $525,700,
respectively, in rents that were deferred and approximately
$414,000 and $2.7 million, in rents that were abated because of
COVID-19. Base rents for the three and nine month periods ended
July 31, 2021, are increased by approximately $791,000 and $2.6
million, respectively, in COVID-19 deferred rents that were billed
and collected in the fiscal 2021 periods.
Note 4 -Represents the percentage of property operating expense
and real estate tax.
Urstadt Biddle Properties
Inc.
Balance Sheet
Highlights
(in thousands)
July 31,
October 31,
2022
2021
(Unaudited)
Assets
Cash and Cash Equivalents
$12,170
$24,057
Real Estate investments before
accumulated depreciation
$1,185,415
$1,148,382
Investments in and advances to
unconsolidated joint ventures
$28,252
$29,027
Total Assets
$990,324
$973,852
Liabilities
Revolving credit line
$10,000
$0
Mortgage notes payable and other
loans
$304,315
$296,449
Total Liabilities
$347,949
$330,553
Redeemable Noncontrolling
Interests
$63,243
$67,395
Preferred Stock
$225,000
$225,000
Total Stockholders’ Equity
$579,132
$575,904
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version on businesswire.com: https://www.businesswire.com/news/home/20220908006072/en/
Willing L. Biddle, CEO or John T. Hayes, CFO Urstadt Biddle
Properties Inc. (203) 863-8200
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