NEW YORK--(BUSINESS WIRE)--
Urban Edge Properties (NYSE:UE) (the "Company") announced today its
financial results for the three and six months ended June 30, 2016.
Highlights of the Quarter include:
-
Net income was $36.1 million, or $0.34 per diluted share, for the
quarter and $55.9 million, or $0.53 per diluted share, for the six
months ended June 30, 2016
-
Generated Funds from Operations applicable to diluted common
shareholders ("FFO") of $33.8 million, or $0.32 per share, for the
quarter and $67.4 million, or $0.64 per share, for the six months
ended June 30, 2016
-
Generated FFO as Adjusted (previously referred to as Recurring FFO) of
$32.9 million, or $0.31 per share, for the quarter and $65.4 million,
or $0.62 per share, for the six months ended June 30, 2016. FFO as
Adjusted for the three and six months ended June 30, 2016 excludes
tenant bankruptcy settlement income and a benefit related to income
taxes
-
Same-property cash Net Operating Income (“NOI”) increased by 4.2% as
compared to the second quarter of 2015 and 3.3% for the six months
ended June 30, 2016 as compared to the same period in 2015 due to new
rent commencements, higher occupancy and higher recoveries
-
Same-property cash NOI including properties in redevelopment increased
by 2.6% for the second quarter of 2016 as compared to the second
quarter in 2015 and 2.3% for the six months ended June 30, 2016 as
compared to the same period in 2015. The expected vacancy of former
anchor tenants at Walnut Creek and Bruckner negatively impacted this
result by approximately 100 basis points. New anchor tenants at Walnut
Creek and Bruckner are expected to open in the fourth quarter of this
year and the first quarter of 2018, respectively
-
Consolidated retail portfolio occupancy increased by 20 basis points
to 96.2% as compared to June 30, 2015 and by 20 basis points as
compared to March 31, 2016
-
Same-property retail portfolio occupancy increased by 50 basis points
to 97.4% as compared to June 30, 2015 and by 20 basis points as
compared to March 31, 2016
-
Executed new leases and renewals and exercised options totaling 63,000
square feet ("sf") in 19 transactions. Same-space leases totaled
40,300 sf at an average rental rate of $31.68 per sf on a GAAP basis
and $30.00 per sf on a cash basis generating an average rent spread of
13.3% on a GAAP basis and 4.4% on a cash basis
Refer to "Non-GAAP Financial Measures" and "Operational Metrics" for
definitions and further discussions of the measures and metrics
highlighted above.
Development, Redevelopment and Anchor Repositioning:
As of June 30, 2016, the Company had approximately $131.4 million of
active development, redevelopment and anchor repositioning projects
underway of which $81.2 million remains to be funded. The Company
expects to generate a 12% return on invested capital based on the
expected incremental cash NOI relative to the total investment.
The Company continues to focus on its development and redevelopment
pipeline which includes $177.0-$203.0 million of planned expansions and
renovations expected to be completed over the next several years. The
Company added a project at our property in Mt. Kisco, NY to the
redevelopment pipeline with an estimated cost of approximately $2.5
million. The Company projects a return on invested capital of
approximately 8% on these projects.
Balance Sheet Highlights:
At June 30, 2016:
-
Total market capitalization (including debt and equity) was
approximately $4.4 billion comprised of 105.8 million common shares
outstanding (on a fully diluted basis) valued at $3.2 billion and $1.2
billion of debt. The calculation of fully diluted common shares
outstanding is provided in the tables accompanying this press release
-
The ratio of net debt (net of cash) to total market capitalization was
24.2%
-
Net debt to annualized Adjusted Earnings before interest, tax,
depreciation and amortization ("EBITDA") was 5.7x. A reconciliation of
net income to EBITDA and Adjusted EBITDA are provided in the tables
accompanying this press release
-
The Company had approximately $156.7 million of cash and cash
equivalents and no amounts drawn on its $500.0 million revolving
credit facility
Asset Disposition:
On June 9, 2016, the Company completed the sale of a shopping center
located in Waterbury, CT for $21.6 million resulting in a gain of $15.6
million. The sale completes a reverse Section 1031 exchange initiated
with the acquisition of Cross Bay Commons in Queens, NY in December 2015.
Non-GAAP Financial Measures
The Company believes FFO (combined with the primary GAAP presentations)
is a useful, supplemental measure of its operating performance that is a
recognized metric used extensively by the real estate industry and, in
particular REITs. The National Association of Real Estate Investment
Trusts ("NAREIT") stated in its April 2002 White Paper on FFO,
"Historical cost accounting for real estate assets implicitly assumes
that the value of real estate assets diminishes predictably over time.
Since real estate values instead have historically risen or fallen with
market conditions, many industry investors have considered presentations
of operating results for real estate companies that use historical cost
accounting to be insufficient by themselves." The Company also believes
that FFO as Adjusted is a useful supplemental measure of its core
operating performance that facilitates comparability of historical
financial periods. FFO, as defined by NAREIT and the Company, is net
income (computed in accordance with GAAP), excluding gains (or losses)
from sales of depreciated real estate assets, real estate impairment
losses, rental property depreciation and amortization expense. The
Company makes certain adjustments to FFO, which it refers to as FFO as
Adjusted, to account for items it does not believe are representative of
ongoing operating results. The Company believes that financial analysts,
investors and stockholders are better served by the presentation of
comparable period operating results generated from its FFO and FFO as
Adjusted measures primarily because it excludes the assumption that the
value of real estate assets diminish predictably. The Company's method
of calculating FFO and FFO as Adjusted may be different from methods
used by other REITs and, accordingly, may not be comparable to such
other REITs.
The Company uses cash NOI, which is a non-GAAP financial measure,
internally to make investment and capital allocation decisions and to
compare the unlevered performance of our properties to our peers. The
Company believes cash NOI is useful to investors as a performance
measure because, when compared across periods, cash NOI reflects the
impact on operations from trends in occupancy rates, rental rates,
operating costs and acquisition and disposition activity on an
unleveraged basis, providing perspective not immediately apparent from
operating income or net income. As such, cash NOI assists in eliminating
disparities in net income due to the development, redevelopment,
acquisition or disposition of properties during the periods presented,
and thus provides a more consistent performance measure for the
comparison of the operating performance of the Company's properties.
In this release, the Company has provided cash NOI on a same-property
basis, which includes the results of properties that were owned and
operated for the entirety of the reporting periods being compared
totaling 77 properties for the three and six months ended June 30, 2016
and 2015. Information on a same-property basis excludes properties under
development, redevelopment or that involve anchor repositioning where a
substantial portion of the gross leasable area is taken out of service
and also excludes properties acquired, sold, or that are in the
foreclosure process during the periods being compared. While there is
judgment surrounding changes in designations, a property is removed from
the same-property pool when a property is considered to be a
redevelopment property because it is undergoing significant renovation
or retenanting pursuant to a formal plan and is expected to have a
significant impact on property operating income based on the retenanting
that is occurring. A development or redevelopment property is moved back
to the same-property pool once a substantial portion of the growth
expected from the development or redevelopment is reflected in both the
current and comparable prior year period, generally the earlier of one
year after construction is substantially complete or when the GLA
related to the redevelopment is 90% leased. Acquisitions are moved into
the same-property pool once we have owned the property for the entirety
of the comparable periods and the property is not under significant
development or redevelopment. The Company has also provided cash NOI on
a same-property basis adjusted to include redevelopment properties. The
Company calculates same-property cash NOI using net income as defined by
GAAP reflecting only those income and expense items that are incurred at
the property level, adjusted for the following items: lease termination
fees, bankruptcy settlement income, non-cash rental income and ground
rent expense and income or expenses that we do not believe are
representative of ongoing operating results, if any.
EBITDA and Adjusted EBITDA are supplemental, non-GAAP measures utilized
in various financial ratios. EBITDA and Adjusted EBITDA are presented to
assist investors in the evaluation of REITs, as a measure of the
Company's operational performance as they exclude various items that do
not relate to or are not indicative of our operating performance and
because it approximates a key performance measure in our debt covenants.
Accordingly, the Company believes that the use of EBITDA and Adjusted
EBITDA as opposed to income before income taxes in various ratios,
provides a meaningful performance measure as it relates to the Company's
ability to meet various coverage tests for the stated periods. The
Company also presents the ratio of net debt (net of cash) to annualized
Adjusted EBITDA, which is useful to investors as a supplemental measure
in evaluating the Company's balance sheet leverage.
FFO, FFO as Adjusted, cash NOI, same-property cash NOI, EBITDA and
Adjusted EBITDA are presented to assist investors in analyzing the
Company’s operating performance. FFO and FFO as Adjusted do not
represent cash flows from operating activities in accordance with GAAP,
should not be considered an alternative to net income as an indication
of our performance, and is not indicative of cash flow as a measure of
liquidity or our ability to make cash distributions. The Company
believes net income is the most directly comparable GAAP financial
measure to FFO, FFO as Adjusted, cash NOI, same-property cash NOI,
EBITDA and Adjusted EBITDA. Reconciliations of these measures to their
comparable GAAP measures have been provided in the tables accompanying
this press release.
Operational Metrics
The Company presents certain operating metrics related to our properties
including occupancy, leasing activity and rental rates. Operating
metrics are used by the Company and useful to investors in facilitating
an understanding of the operational performance for our properties.
Occupancy metrics represent the percentage of occupied gross leasable
area based on executed leases (including properties in development and
redevelopment) and includes leases signed, but for which rent has not
yet commenced. Same-property retail portfolio occupancy includes
shopping centers and malls that have been owned and operated for the
entirety of the reporting periods being compared totaling 77 properties
for the three and six months ended June 30, 2016 and 2015. Occupancy
metrics presented for the Company's same-property retail portfolio
excludes properties under development, redevelopment or that involve
anchor repositioning where a substantial portion of the gross leasable
area is taken out of service and also excludes properties acquired
within the past 12 months, properties sold, or that are in the
foreclosure process during the periods being compared.
Executed new leases, renewals and exercised options are presented on a
same-space basis. Same-space leases represent those leases signed on
spaces for which there was a previous lease with comparable gross
leasable area.
ADDITIONAL INFORMATION
For a copy of the Company’s supplemental disclosure package, please
access the "Investors" section of UE’s website at www.uedge.com.
Our website also includes other financial information, including our
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K, and amendments to those reports.
ABOUT URBAN EDGE
Urban Edge Properties is a NYSE listed real estate investment trust
focused on managing, acquiring, developing, and redeveloping retail real
estate in urban communities, primarily in the New York metropolitan
region. Urban Edge owns 83 properties totaling 14.7 million square feet
of gross leasable area.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this Press Release constitute
forward-looking statements as such term is defined in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements are not
guarantees of future performance. They represent our intentions, plans,
expectations and beliefs and are subject to numerous assumptions, risks
and uncertainties. Our future results, financial condition and business
may differ materially from those expressed in these forward-looking
statements. You can find many of these statements by looking for words
such as “approximates,” “believes,” “expects,” “anticipates,”
“estimates,” “intends,” “plans,” “would,” “may” or other similar
expressions in this Press Release. Many of the factors that will
determine the outcome of these and our other forward-looking statements
are beyond our ability to control or predict; these factors include,
among others, the Company's ability to complete its active development,
redevelopment and anchor repositioning projects, the Company's ability
to engage in the projects in its planned expansion and redevelopment
pipeline and the Company's ability to achieve the estimated unleveraged
returns for such projects. For further discussion of factors that could
materially affect the outcome of our forward-looking statements, see
“Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for
the year ended December 31, 2015.
For these statements, we claim the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. You are cautioned not to place undue
reliance on our forward-looking statements, which speak only as of the
date of this Press Release. All subsequent written and oral
forward-looking statements attributable to us or any person acting on
our behalf are expressly qualified in their entirety by the cautionary
statements contained or referred to in this section. We do not undertake
any obligation to release publicly any revisions to our forward-looking
statements to reflect events or circumstances occurring after the date
of this Press Release.
|
|
|
|
URBAN EDGE PROPERTIES CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share amounts) |
|
|
|
| |
|
| |
| | | | June 30, | | | December 31, |
| | | | 2016 | | | 2015 |
| ASSETS | | | | | | | |
|
Real estate, at cost:
| | | | | | | |
|
Land
| | | |
$
|
378,997
| | | |
$
|
389,080
| |
|
Buildings and improvements
| | | |
1,587,158
| | | |
1,630,539
| |
|
Construction in progress
| | | |
124,098
| | | |
61,147
| |
|
Furniture, fixtures and equipment
| | | |
3,970
|
| | |
3,876
|
|
|
Total
| | | |
2,094,223
| | | |
2,084,642
| |
|
Accumulated depreciation and amortization
| | | |
(518,215
|
)
| | |
(509,112
|
)
|
|
Real estate, net
| | | |
1,576,008
| | | |
1,575,530
| |
|
Cash and cash equivalents
| | | |
156,672
| | | |
168,983
| |
|
Cash held in escrow and restricted cash
| | | |
8,995
| | | |
9,042
| |
|
Tenant and other receivables, net of allowance for doubtful accounts
of $2,270 and $1,926, respectively
| | | |
8,317
| | | |
10,364
| |
|
Receivable arising from the straight-lining of rents, net of
allowance for doubtful accounts of $370 and $148, respectively
| | | |
87,925
| | | |
88,778
| |
|
Identified intangible assets, net of accumulated amortization of
$21,459 and $22,090, respectively
| | | |
32,586
| | | |
33,953
| |
|
Deferred leasing costs, net of accumulated amortization of $13,438
and $12,987, respectively
| | | |
18,108
| | | |
18,455
| |
|
Deferred financing costs, net of accumulated amortization of $242
and $709, respectively
| | | |
2,419
| | | |
2,838
| |
|
Prepaid expenses and other assets
| | | |
8,360
|
| | |
10,988
|
|
|
Total assets
| | | |
$
|
1,899,390
|
| | |
$
|
1,918,931
|
|
| | | | | | |
|
| LIABILITIES AND EQUITY | | | | | | | |
|
Liabilities:
| | | | | | | |
|
Mortgages payable, net
| | | |
$
|
1,205,278
| | | |
$
|
1,233,983
| |
|
Identified intangible liabilities, net of accumulated amortization
of $69,013 and $65,220, respectively
| | | |
151,061
| | | |
154,855
| |
|
Accounts payable and accrued expenses
| | | |
39,889
| | | |
45,331
| |
|
Other liabilities
| | | |
14,898
|
| | |
13,308
|
|
|
Total liabilities
| | | |
1,411,126
|
| | |
1,447,477
|
|
|
Commitments and contingencies
| | | | | | | |
|
Shareholders’ equity:
| | | | | | | |
|
Common shares: $0.01 par value; 500,000,000 shares authorized and
99,425,137 and 99,290,952 shares issued and outstanding, respectively
| | | |
994
| | | |
993
| |
|
Additional paid-in capital
| | | |
477,673
| | | |
475,369
| |
|
Accumulated deficit
| | | |
(25,616
|
)
| | |
(38,442
|
)
|
|
Noncontrolling interests:
| | | | | | | |
|
Redeemable noncontrolling interests
| | | |
34,858
| | | |
33,177
| |
|
Noncontrolling interest in consolidated subsidiaries
| | | |
355
|
| | |
357
|
|
|
Total equity
| | | |
488,264
|
| | |
471,454
|
|
|
Total liabilities and equity
| | | |
$
|
1,899,390
|
| | |
$
|
1,918,931
|
|
|
|
|
|
URBAN EDGE PROPERTIES CONSOLIDATED AND COMBINED STATEMENTS OF INCOME (Unaudited) (In thousands, except share and per share amounts) |
|
|
| |
|
| |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, |
| | | 2016 |
| 2015 | | | 2016 |
| 2015 |
| REVENUE | | | | | | | | | | |
|
Property rentals
| | |
$
|
58,683
| | |
$
|
57,380
| | | |
$
|
117,612
| | |
$
|
114,966
| |
|
Tenant expense reimbursements
| | |
19,879
| | |
20,451
| | | |
42,386
| | |
44,754
| |
|
Management and development fees
| | |
526
| | |
693
| | | |
981
| | |
1,228
| |
|
Other income
| | |
369
|
| |
191
|
| | |
1,546
|
| |
1,550
|
|
|
Total revenue
| | |
79,457
|
| |
78,715
|
| | |
162,525
|
| |
162,498
|
|
| EXPENSES | | | | | | | | | | |
|
Depreciation and amortization
| | |
13,558
| | |
14,233
| | | |
27,473
| | |
27,965
| |
|
Real estate taxes
| | |
12,723
| | |
12,517
| | | |
25,972
| | |
25,341
| |
|
Property operating
| | |
9,840
| | |
10,985
| | | |
22,699
| | |
27,508
| |
|
General and administrative
| | |
7,535
| | |
6,792
| | | |
14,255
| | |
19,118
| |
|
Ground rent
| | |
2,483
| | |
2,565
| | | |
5,021
| | |
5,079
| |
|
Transaction costs
| | |
34
| | |
427
| | | |
84
| | |
22,286
| |
|
Provision for doubtful accounts
| | |
494
|
| |
389
|
| | |
845
|
| |
712
|
|
|
Total expenses
| | |
46,667
|
| |
47,908
|
| | |
96,349
|
| |
128,009
|
|
|
Operating income
| | |
32,790
| | |
30,807
| | | |
66,176
| | |
34,489
| |
|
Gain on sale of real estate
| | |
15,618
| | |
—
| | | |
15,618
| | |
—
| |
|
Interest income
| | |
177
| | |
51
| | | |
344
| | |
62
| |
|
Interest and debt expense
| | |
(12,820
|
)
| |
(13,241
|
)
| | |
(26,249
|
)
| |
(28,410
|
)
|
|
Income before income taxes
| | |
35,765
| | |
17,617
| | | |
55,889
| | |
6,141
| |
|
Income tax benefit (expense)
| | |
306
|
| |
(464
|
)
| | |
(30
|
)
| |
(1,005
|
)
|
|
Net income
| | |
36,071
| | |
17,153
| | | |
55,859
| | |
5,136
| |
|
Less (net income) loss attributable to noncontrolling interests in:
| | | | | | | | | | |
|
Operating partnership
| | |
(2,201
|
)
| |
(986
|
)
| | |
(3,355
|
)
| |
(426
|
)
|
|
Consolidated subsidiaries
| | |
(2
|
)
| |
(5
|
)
| | |
2
|
| |
(11
|
)
|
|
Net income attributable to common shareholders
| | |
$
|
33,868
|
| |
$
|
16,162
|
| | |
$
|
52,506
|
| |
$
|
4,699
|
|
| | | | | | | | | |
|
|
Earnings per common share - Basic:
| | |
$
|
0.34
|
| |
$
|
0.16
|
| | |
$
|
0.53
|
| |
$
|
0.05
|
|
|
Earnings per common share - Diluted:
| | |
$
|
0.34
|
| |
$
|
0.16
|
| | |
$
|
0.53
|
| |
$
|
0.05
|
|
|
Weighted average shares outstanding - Basic
| | |
99,274
|
| |
99,250
|
| | |
99,270
|
| |
99,249
|
|
|
Weighted average shares outstanding - Diluted
| | |
99,668
|
| |
99,274
|
| | |
99,592
|
| |
99,265
|
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
Reconciliation of Net Income to FFO and FFO as Adjusted
The following table reflects the reconciliation of net income to FFO and
FFO as Adjusted for the three and six months ended June 30, 2016. Net
income is considered the most directly comparable GAAP measure.
|
|
| Three Months Ended June 30, 2016 |
|
| Six Months Ended June 30, 2016 |
| | |
(in thousands)
|
|
(per share)
| | |
(in thousands)
|
|
(per share)
|
|
Net income
| | |
$
|
36,071
| | |
$
|
0.34
| | | |
$
|
55,859
| | |
$
|
0.53
| |
|
Less (net income) attributable to noncontrolling interests in:
| | | | | | | | | | |
|
Operating partnership
| | |
(2,201
|
)
| |
(0.02
|
)
| | |
(3,355
|
)
| |
(0.03
|
)
|
|
Consolidated subsidiaries
| | |
(2
|
)
| |
—
|
| | |
2
|
| |
—
|
|
|
Net income attributable to common shareholders
| | |
33,868
| | |
0.32
| | | |
52,506
| | |
0.50
| |
|
Adjustments:
| | | | | | | | | | |
|
Gain on sale of real estate
| | |
(15,618
|
)
| |
(0.15
|
)
| | |
(15,618
|
)
| |
(0.15
|
)
|
|
Rental property depreciation and amortization
| | |
13,395
| | |
0.13
| | | |
27,150
| | |
0.26
| |
|
Limited partnership interests in operating partnership
| | |
2,201
|
| |
0.02
|
| | |
3,355
|
| |
0.03
|
|
|
FFO Applicable to diluted common shareholders(1) | | |
33,846
| | |
0.32
| | | |
67,393
| | |
0.64
| |
| | | | | | | | | |
|
|
Tenant bankruptcy settlement income
| | |
(340
|
)
| |
—
| | | |
(1,490
|
)
| |
(0.01
|
)
|
|
Benefit related to income taxes
| | |
(625
|
)
| |
(0.01
|
)
| | |
(625
|
)
| |
(0.01
|
)
|
|
Transaction costs
| | |
34
|
| |
—
|
| | |
84
|
| |
—
|
|
|
FFO as Adjusted applicable to diluted common shareholders(1) | | |
$
|
32,915
|
| |
$
|
0.31
|
| | |
$
|
65,362
|
| |
$
|
0.62
|
|
| | | | | | | | | |
|
|
Weighted average diluted common shares - FFO(1) | | |
106,041
| | | | | |
105,866
| | | |
| (1) |
|
Refer to the table below for reconciliation of weighted average
diluted shares used in EPS calculations and weighted average diluted
common shares used in FFO per share calculations.
| |
| | |
|
FFO and FFO as Adjusted are non-GAAP financial measures. The Company
believes FFO, as defined by NAREIT, is a widely used and appropriate
supplemental measure of operating performance for REITs, and that it
provides a relevant basis for comparison among REITs. The Company
believes FFO as Adjusted provides additional comparability between
historical financial periods. Refer to “Non-GAAP Financial Measures”
above.
The following table reflects the reconciliation of weighted average
diluted shares used in EPS calculations and weighted average diluted
common shares used in FFO per share calculations.
| (in thousands) |
|
|
| Three Months Ended June 30, 2016 |
|
| Six Months Ended June 30, 2016 | |
|
Weighted average diluted shares used to calculate EPS
| | | |
99,668
| | |
99,592
| |
|
Assumed conversion of OP and LTIP Units to common stock(1) | | | |
6,373
| | |
6,274
| |
|
Weighted average diluted common shares used to calculate
FFO per share
| | | |
106,041
| | |
105,866
| |
| (1) OP and vested LTIP Units are excluded from the
calculation of earnings per diluted share for the three and six
months ended June 30, 2016 because their inclusion is anti-dilutive.
FFO includes earnings allocated to unitholders as the inclusion of
these units is dilutive to FFO per share.
|
|
|
Reconciliation of Net Income to Cash NOI and Same-Property Cash NOI
The following table reflects the reconciliation of net income to cash
NOI, same-property cash NOI and same-property cash NOI including
properties in redevelopment for the three and six months ended June 30,
2016 and 2015. Net income is considered the most directly comparable
GAAP measure.
|
|
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| (Amounts in thousands) | | | 2016 |
| 2015 | | | 2016 |
| 2015 |
|
Net income
| | |
$
|
36,071
| | |
$
|
17,153
| | | |
$
|
55,859
| | |
$
|
5,136
| |
|
Add: Income tax (benefit) expense
| | |
(306
|
)
| |
464
|
| | |
30
|
| |
1,005
|
|
|
Income before income taxes
| | |
35,765
| | |
17,617
| | | |
55,889
| | |
6,141
| |
|
Gain on sale of real estate
| | |
(15,618
|
)
| |
—
| | | |
(15,618
|
)
| |
—
| |
|
Interest income
| | |
(177
|
)
| |
(51
|
)
| | |
(344
|
)
| |
(62
|
)
|
|
Interest and debt expense
| | |
12,820
|
| |
13,241
|
| | |
26,249
|
| |
28,410
|
|
|
Operating income
| | |
32,790
| | |
30,807
| | | |
66,176
| | |
34,489
| |
|
Depreciation and amortization
| | |
13,558
| | |
14,233
| | | |
27,473
| | |
27,965
| |
|
General and administrative expense
| | |
7,535
| | |
6,792
| | | |
14,255
| | |
19,118
| |
|
Transaction costs
| | |
34
|
| |
427
|
| | |
84
|
| |
22,286
|
|
|
NOI
| | |
53,917
| | |
52,259
| | | |
107,988
| | |
103,858
| |
|
Less: non-cash revenue and expenses
| | |
(1,454
|
)
| |
(1,401
|
)
| | |
(3,265
|
)
| |
(3,101
|
)
|
|
Cash NOI(1) | | |
52,463
|
| |
50,858
|
| | |
104,723
|
| |
100,757
|
|
|
Adjustments:
| | | | | | | | | | |
|
Cash NOI related to properties being redeveloped(1) | | |
(4,233
|
)
| |
(4,795
|
)
| | |
(8,207
|
)
| |
(8,934
|
)
|
|
Tenant bankruptcy settlement income
| | |
(340
|
)
| |
—
| | | |
(1,490
|
)
| |
(1,260
|
)
|
|
Management and development fee income from non-owned properties
| | |
(526
|
)
| |
(693
|
)
| | |
(981
|
)
| |
(1,228
|
)
|
|
Cash NOI related to properties acquired, disposed, or in foreclosure(1) | | |
(676
|
)
| |
(450
|
)
| | |
(1,378
|
)
| |
(884
|
)
|
|
Environmental remediation costs
| | |
—
| | |
—
| | | |
—
| | |
1,379
| |
|
Other(2) | | |
37
|
| |
(60
|
)
| | |
89
|
| |
(50
|
)
|
|
Subtotal adjustments
| | |
(5,738
|
)
| |
(5,998
|
)
| | |
(11,967
|
)
| |
(10,977
|
)
|
|
Same-property cash NOI
| | |
$
|
46,725
|
| |
$
|
44,860
|
| | |
$
|
92,756
|
| |
$
|
89,780
|
|
|
Adjustments:
| | | | | | | | | | |
|
Cash NOI related to properties being redeveloped
| | |
4,233
|
| |
4,795
|
| | |
8,207
|
| |
8,934
|
|
|
Same-property cash NOI including properties in redevelopment
| | |
$
|
50,958
|
| |
$
|
49,655
|
| | |
$
|
100,963
|
| |
$
|
98,714
|
|
| (1) |
|
Cash NOI is calculated as total property revenues less property
operating expenses, excluding the net effects of non-cash rental
income and non-cash ground rent expense.
| |
| (2) | |
Other adjustments include revenue and expense items attributable to
non-same properties and corporate activities.
| |
| | |
|
Cash NOI and same-property cash NOI are non-GAAP financial measures. The
Company believes that same-property cash NOI is a widely used and
appropriate supplemental measure of operating performance for comparison
among REITs. Refer to “Non-GAAP Financial Measures” above.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
The following table reflects the reconciliation of net income to EBITDA
and Adjusted EBITDA for the three and six months ended June 30, 2016 and
2015. Net income is considered the most directly comparable GAAP measure.
|
|
|
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| (Amounts in thousands) | | | | 2016 |
| 2015 | | | 2016 |
| 2015 |
|
Net income
| | | |
$
|
36,071
| | |
$
|
17,153
| | | |
$
|
55,859
| | |
$
|
5,136
| |
|
Depreciation and amortization
| | | |
13,558
| | |
14,233
| | | |
27,473
| | |
27,965
| |
|
Interest and debt expense
| | | |
12,820
| | |
13,241
| | | |
26,249
| | |
28,410
| |
|
Income tax (benefit) expense
| | | |
(306
|
)
| |
464
|
| | |
30
|
| |
1,005
|
|
|
EBITDA
| | | |
62,143
|
| |
45,091
|
| | |
109,611
|
| |
62,516
|
|
|
Adjustments for Adjusted EBITDA:
| | | | | | | | | | | |
|
Gain on sale of real estate
| | | |
(15,618
|
)
| |
—
| | | |
(15,618
|
)
| |
—
| |
|
Tenant bankruptcy settlement income
| | | |
(340
|
)
| |
—
| | | |
(1,490
|
)
| |
(1,260
|
)
|
|
Transaction costs
| | | |
34
| | |
427
| | | |
84
| | |
22,286
| |
|
Equity awards issued in connection with the spin-off
| | | |
—
| | |
—
| | | |
—
| | |
7,143
| |
|
Environmental remediation costs
| | | |
—
|
| |
—
|
| | |
—
|
| |
1,379
|
|
|
Adjusted EBITDA
| | | |
$
|
46,219
|
| |
$
|
45,518
|
| | |
$
|
92,587
|
| |
$
|
92,064
|
|
| | | | | | | | | | | | | | | | | | |
|
EBITDA and Adjusted EBITDA are non-GAAP financial measures. Refer to
“Non-GAAP Financial Measures” above.
The following table reflects the Company's fully diluted common shares
outstanding which is the total number of shares that would be
outstanding assuming all possible conversions. Fully diluted common
shares outstanding are utilized to calculate our equity market
capitalization to allow investors the ability to assess our market
value. The sum of the total equity market capitalization and total debt,
as calculated in accordance with GAAP, represents the Company's total
market capitalization.
|
|
|
|
|
|
| June 30, 2016 |
|
Common shares outstanding
| | | | | | |
99,294,491
|
|
Diluted common shares:
| | | | | | | |
|
OP and LTIP units
| | | | | | |
6,150,224
|
|
Unvested restricted common shares and OPP units
| | | | | | |
358,782
|
|
Fully diluted common shares
| | | | | | |
105,803,497
|
| | | | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160803006654/en/
Urban Edge Properties
Mark Langer, 212-956-2556
EVP and Chief
Financial Officer
Source: Urban Edge Properties