Urstadt Biddle Properties reported its operating results for the second quarter and six month periods ended April 30, 2016. Q2 Diluted Funds from Operations (FFO) was $10,752,000 or $0.31 per Class A Common share and $0.28 per Common share.
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This compares to $9,549,000 or $0.28 per Class A Common share and $0.25 per Common share in last year’s second quarter.
For the first six months of fiscal 2016, diluted FFO amounted to $19,428,000 or $0.57 per Class A Common share and $0.51 per Common share, compared to $17,629,000 or $0.52 per Class A Common share and $0.46 per Common share in the corresponding period of fiscal 2015. The FFO amounts above include significant non-recurring items in fiscal 2015.
After removing non-recurring items from both the three and six-month periods of fiscal 2016 and 2015, the company’s adjusted Diluted FFO for the three month period ended April 30, 2016 was $10,801,000 or $0.32 per diluted Class A Common share and $0.28 per diluted Common share, compared to $9,727,000 or $0.29 per diluted Class A Common share and $0.25 per diluted Common share in last year’s second quarter.
Adjusted FFO for the six month period ended April 30, 2016 was $19,557,000 or $0.57 per diluted Class A Common share and $0.51 per diluted Common share, compared to $19,843,000 or $0.58 per diluted Class A Common share and $0.52 per diluted Common share in the first six months of fiscal 2015.
Net income attributable to Class A Common and Common stockholders for the second quarter of fiscal 2016 was $4,769,000 or $0.14 per diluted Class A Common share and $0.12 per diluted Common share, compared to $3,677,000 or $0.11 per diluted Class A Common share and $0.10 per diluted Common share in last year’s second quarter.
Net income attributable to Class A Common and Common stockholders for the first six months of fiscal 2016 was $7,646,000 or $0.22 per diluted Class A Common share and $0.20 per diluted Common share, compared to $5,794,000 or $0.17 per diluted Class A Common share and $0.15 per diluted Common share in the first six months of fiscal 2015.
The per share amounts for both FFO and net income for the six months ended April 30, 2016 and 2015 include one-time property acquisition costs of $129,000 and $1.9 million, respectively.
The first quarter fiscal 2015 acquisition costs of $1.8 million were incurred when the company purchased four retail properties in New Jersey in December 2014 (fiscal 2015) for $124.6 million.
In addition, the per share amounts for both FFO and net income in fiscal 2015 were reduced by $268,000 in preferred stock dividends as a result of issuing the Series G preferred stock a month before the redemption of the company’s Series D preferred stock could take place.
At April 30, 2016, the company’s consolidated properties were 94.43% leased (versus 95.79% at the end of fiscal 2015) and 93.74% occupied (versus 94.97% at the end of fiscal 2015).
The drop in the company’s leased rate in the first half of fiscal 2016 when compared to the end of fiscal 2015 was predominantly related to the A&P bankruptcy.
During the first quarter of fiscal 2016, three of nine spaces that A&P previously occupied became vacant. Those spaces totaled 130,000 square feet, or about 3.3% of the square footage of the company’s consolidated properties.
Six of the company’s nine former A&P leases have been assumed by new operators. Of the three A&P spaces the company received back, two have since been re-leased. The company leased the former A&P spaces in Bloomfield and Wayne, NJ to local grocery store operators subsequent to January 31, 2016.
The space in Wayne was leased for 20 years at an initial base rental rate $2 per square foot higher than the base rent under the former A&P lease and the Bloomfield location was leased for 20 years at an initial base rental rate $8.50 per square foot higher than the base rent under the former A&P lease.
Both leases are net leases, and the new tenants pay additional rent for their share of CAM and real estate taxes. The company is marketing the remaining Pompton Lakes location for lease.
Both the percentage of property leased and the percentage of property occupied exclude the company’s unconsolidated joint ventures and the company’s White Plains property. In November, 2014, the company obtained a zoning change from the City of White Plains to convert this property to a higher and better use. The property is in contract to be sold and the Company plans on completing the sale later in fiscal 2016.
At April 30, 2016, the company had equity interests in seven unconsolidated joint ventures (749,000 square feet), which were 98.3% leased (98.1% at October 31, 2015). ■