Urstadt Biddle Reports FFO Increase for Fiscal Year 2000

GREENWICH, CT-The fiscal report from Urstadt Biddle Properties Inc. was a mixed bag–a slight increase in funds from operations revenue while a decrease in net income. Company officials blamed this in part on the recent fiscal woes of some of its tenants.

The retail REIT’s report was for its fourth quarter and full year financial results for the fiscal year ended October 31, 2000. Funds from Operations increased to $11,914,000 or $1.05 per diluted common share and $1.17 per diluted class A common share from $11,878,000 or $1.04 per diluted common share and $1.16 per diluted class A common share in fiscal 1999.

On the downside, the company noted that net income applicable to common and class A common stockholders for the year 2000 was $5,442,000 or $0.49 per diluted common share and $0.55 per diluted class A common share compared to $6,043,000 or $0.54 per diluted common share and $0.61 per diluted class A common share in 1999. Fiscal year 2000 and 1999 results include capital gains on the sales of properties of $1,067,000 and $1,364,000, respectively.

For the three months ended October 31, 2000, net income applicable to common and class A common shareholders was $1,136,000 or $0.10 per diluted common share and $0.11 per diluted class A common share from $2,811,000 or $0.26 per diluted common share and $0.27 per class A common share for the comparable period in fiscal 1999. Last year’s quarter included capital gains of $1,364,000 on sales of properties. Fourth quarter 2000 earnings reflected the loss of rental revenues from several tenants who filed for bankruptcy protection earlier in the year and vacated the premises. The company recently signed leases with new tenants to replace them.

Charles J. Urstadt, chairman and chief executive officer of Urstadt commented, “Our focus has been on re-tenanting and renewing retail space at our core retail properties. As a result, we were able to lease or renew nearly 353,000 sf of space, or 20% of the company’s core operating properties total leasable area.”

He adds that recent leasing activity will favorably impact the company’s fiscal 2001 performance. As of Oct. 31, 2000, the firm’s core properties were 97% occupied, up two percentage points from the same period a year ago. Urstadt Biddle Properties owns 25 retail properties consisting of more than 3.3 million sf of space.

Company officials noted that it is in negotiations to acquire several properties in the Westchester-Fairfield County area. No details were provided on these discussions.