NEW YORK--(BUSINESS WIRE)--
Urban Edge Properties (NYSE:UE) (the "Company") today announced its
results for the three and six months ended June 30, 2017.
Financial Results(1)(2)
-
Generated net income of $14.9 million, or $0.13 per diluted share, for
the quarter and $69.7 million, or $0.63 per diluted share, for the six
months ended June 30, 2017.
-
Generated Funds from Operations applicable to diluted common
shareholders ("FFO") of $38.7 million, or $0.34 per share, for the
quarter and $112.1 million, or $1.01 per share, for the six months
ended June 30, 2017.
-
Generated FFO as Adjusted of $0.33 per share for the quarter and $0.66
per share for the six months ended June 30, 2017, an increase of 6.5%
per share compared to both the second quarter of 2016 and the six
months ended June 30, 2016.
Operating Results(1)
-
Increased same-property cash Net Operating Income (“NOI”) by 5.0%
compared to the second quarter of 2016 and by 5.3% compared to the six
months ended June 30, 2016, primarily due to rent commencements at
Garfield Commons, Kearny Commons and Bergen Town Center and higher
recoveries.
-
Increased same-property cash NOI including properties in redevelopment
by 5.6% compared to the second quarter of 2016 and by 6.1% compared to
the six months ended June 30, 2016. Rent commencements at East Hanover
warehouses, Walnut Creek and Montehiedra contributed to this growth.
-
Reported a decline in consolidated retail portfolio occupancy of 30
basis points to 95.9% compared to June 30, 2016 and 130 basis points
compared to March 31, 2017, primarily as a result of acquiring centers
with lower occupancy than our existing portfolio.
-
Increased same-property retail portfolio occupancy by 90 basis points
to 98.2% compared to June 30, 2016 and reported a decrease of 10 basis
points compared to March 31, 2017.
-
Executed 31 new leases, renewals and options totaling 373,000 square
feet (sf) during the quarter. Same-space leases totaled 338,000 sf and
generated average rent spreads of 1.7% on a GAAP basis and (2.7)% on a
cash basis.
Acquisition and Disposition Activity
-
Acquired seven retail assets, predominantly in the New York metro
area, totaling $325 million during the quarter. Funding for these
acquisitions was comprised of approximately $122 million in UE
operating partnership units valued at $27.02 per unit (4.5 million
units), approximately $33 million of assumed debt, the issuance of
approximately $126 million in non-recourse, mortgage loans and
approximately $44 million in cash.
-
During the six months ended June 30, 2017, the Company acquired a
total of nine retail assets as follows:
|
| |
| |
| |
| |
| |
| Date Acquired | | Property | | Location | | GLA SF | | Occupancy | | Purchase Price |
| | | | | | | | | |
|
| 1/17/2017 | |
Shops at Bruckner
| | Bronx, NY | |
114,000
| |
100%
| |
$
|
32,000
|
| 2/2/2017 | | Hudson Mall | | Jersey City, NJ | |
383,000
| |
97%
| |
43,700
|
| 5/24/2017 | | Yonkers Gateway Center
(2 transactions)(3) | | Yonkers, NY | |
437,000
| |
88%
| |
152,388
|
| 5/24/2017 | | The Plaza at Cherry Hill | | Cherry Hill, NJ | |
413,000
| |
74%
| |
51,348
|
| 5/24/2017 | | Manchester Plaza | | Manchester, MO | |
131,000
| |
89%
| |
19,794
|
| 5/24/2017 | | Millburn Gateway Center | | Millburn, NJ | |
102,000
| |
97%
| |
43,748
|
| 5/24/2017 | | 21 E Broad St/One Lincoln Plaza | | Westfield, NJ | |
22,000
| |
100%
| |
9,670
|
| 5/25/2017 | | The Plaza at Woodbridge | | Woodbridge, NJ | |
411,000
| |
81%
| |
99,752
|
| | | | Total | |
2,013,000
| |
87%
| |
$
|
452,400
|
| | | | | | | | | | |
|
-
Completed the sale of a 32,000 sf vacant building located in
Eatontown, NJ for $5.0 million on June 30, 2017.
Development, Redevelopment and Anchor Repositioning Activity
-
Advanced thirteen active projects. Estimated gross cost for active and
completed projects totals $203.4 million, a $10.3 million increase
over the first quarter of 2017. Increased project costs are primarily
offset by increased revenue from new tenant leases. These projects are
expected to generate a 10% return. Of the $203.4 million, $96.8
million remains to be funded.
-
Sixteen additional pipeline projects are expected to earn 9% on the
projected investment of $69-86 million.
Financing Activity
-
On May 10, 2017, issued 7.7 million common shares through an
underwritten public offering generating cash proceeds of $193.5
million. The Company intends to use the net proceeds of this offering
for development and redevelopment projects and for general corporate
purposes including potential acquisitions that may be identified in
the future.
Balance Sheet Highlights at June 30, 2017(1)(4)
-
Total market capitalization of approximately $4.3 billion comprising
120.4 million, fully diluted common shares valued at $2.9 billion and
$1.4 billion of debt.
-
Net debt to total market capitalization of 27%.
-
Net debt to Adjusted Earnings before interest, tax, depreciation and
amortization ("EBITDA") of 5.6x.
- $248 million of cash and cash equivalents and no amounts drawn on the
$600 million revolving credit facility.
|
| |
| (1) | |
Refer to "Non-GAAP Financial Measures" and "Operating Metrics" for
definitions and additional detail.
|
| (2) | |
Refer to page 8 for a reconciliation of FFO to FFO as Adjusted for
the three and six months ended June 30, 2017.
|
| (3) | |
The acquisition of Yonkers Gateway Center closed in two
transactions. On January 4, 2017, the Company acquired fee and
leasehold interests for $51.7 million. On May 24, 2017, the Company
acquired the remaining fee and leasehold interests not previously
acquired for $100.7 million.
|
| (4) | |
The tables accompanying this press release provide the calculation
of fully diluted common shares and a reconciliation of net income to
EBITDA and Adjusted EBITDA.
|
| |
|
Non-GAAP Financial Measures
The Company uses certain non-GAAP performance measures, in addition to
the primary GAAP presentations, as we believe these measures improve the
understanding of the Company's operational results. We continually
evaluate the usefulness, relevance, limitations, and calculation of our
reported non-GAAP performance measures to determine how best to provide
relevant information to the investing public, and thus such reported
measures are subject to change. The Company's non-GAAP performance
measures have limitations as they do not include all items of income and
expense that affect operations, and accordingly, should always be
considered as supplemental financial results. The following non-GAAP
measures are commonly used by the Company and investing public to
understand and evaluate our operating results and performance:
-
FFO: The Company believes FFO 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. FFO, as defined by
the National Association of Real Estate Investment Trusts ("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 believes that financial
analysts, investors and stockholders are better served by the
presentation of comparable period operating results generated from FFO
primarily because it excludes the assumption that the value of real
estate assets diminish predictably. FFO does 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.
-
FFO as Adjusted: The Company provides disclosure of FFO as Adjusted
because it believes it is a useful supplemental measure of its core
operating performance that facilitates comparability of historical
financial periods. FFO as Adjusted is calculated by making certain
adjustments to FFO to account for items the Company does not believe
are representative of ongoing core operating results including
transaction costs associated with acquisition and disposition activity
and non-comparable revenues and expenses. The Company's method of
calculating FFO as Adjusted may be different from methods used by
other REITs and, accordingly, may not be comparable to such other
REITs.
-
Cash NOI: The Company uses cash NOI 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. The
Company calculates 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.
-
Same-property Cash NOI: The Company provides disclosure of 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 76 properties for the three and six months
ended June 30, 2017 and 2016. Information provided on a same-property
basis excludes properties under development, redevelopment or that
involve anchor repositioning where a substantial portion of the gross
leasable area ("GLA") is taken out of service and also excludes
properties acquired, sold, under contract to be sold, or that are in
the foreclosure process during the periods being compared. As such,
same-property 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. While there is
judgment surrounding changes in designations, a property is removed
from the same-property pool when it is designated as a redevelopment
property because it is undergoing significant renovation or
retenanting pursuant to a formal plan that is expected to have a
significant impact on its operating income. A development or
redevelopment property is moved back to the same-property pool once a
substantial portion of the NOI growth expected from the development or
redevelopment is reflected in both the current and comparable prior
year period, generally one year after at least 80% of the expected NOI
from the project is realized on a cash basis for a full quarter.
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 disclosure of cash NOI on a same-property
basis adjusted to include redevelopment properties.
-
EBITDA and Adjusted EBITDA: EBITDA and Adjusted EBITDA are
supplemental, non-GAAP measures utilized by us 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 they
approximate key performance measures 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 meaningful performance measures related 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 it believes is useful to investors
as a supplemental measure in evaluating the Company's balance sheet
leverage.
The Company believes net income is the most directly comparable GAAP
financial measure to the non-GAAP performance measures outlined above.
Reconciliations of these measures to net income have been provided in
the tables accompanying this press release.
Operating 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 are 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 76 properties
for the three and six months ended June 30, 2017 and 2016. 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, under contract to be 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 90 properties totaling 16.6 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 pursue, finance and complete acquisition opportunities, 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 and acquisitions. 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,
2016 and the other documents filed by the Company with the Securities
and Exchange Commission.
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 |
| (In thousands, except share and per share amounts) |
|
| |
| |
| | June 30, | | December 31, |
| | 2017 | | 2016 |
| ASSETS | | | | |
|
Real estate, at cost:
| | | | |
|
Land
| |
$
|
522,098
| | |
$
|
384,217
| |
|
Buildings and improvements
| |
1,992,386
| | |
1,650,054
| |
|
Construction in progress
| |
123,009
| | |
99,236
| |
|
Furniture, fixtures and equipment
| |
5,591
|
| |
4,993
|
|
|
Total
| |
2,643,084
| | |
2,138,500
| |
|
Accumulated depreciation and amortization
| |
(568,980
|
)
| |
(541,077
|
)
|
|
Real estate, net
| |
2,074,104
| | |
1,597,423
| |
|
Cash and cash equivalents
| |
248,407
| | |
131,654
| |
|
Restricted cash
| |
14,422
| | |
8,532
| |
|
Tenant and other receivables, net of allowance for doubtful accounts
of $2,947 and $2,332, respectively
| |
13,299
| | |
9,340
| |
|
Receivable arising from the straight-lining of rents, net of
allowance for doubtful accounts of $324 and $261, respectively
| |
85,737
| | |
87,695
| |
|
Identified intangible assets, net of accumulated amortization of
$26,140 and $22,361, respectively
| |
94,964
| | |
30,875
| |
|
Deferred leasing costs, net of accumulated amortization of $14,910
and $13,909, respectively
| |
19,771
| | |
19,241
| |
|
Deferred financing costs, net of accumulated amortization of $1,228
and $726, respectively
| |
3,755
| | |
1,936
| |
|
Prepaid expenses and other assets
| |
9,245
|
| |
17,442
|
|
|
Total assets
| |
$
|
2,563,704
|
| |
$
|
1,904,138
|
|
| | | |
|
| LIABILITIES AND EQUITY | | | | |
|
Liabilities:
| | | | |
|
Mortgages payable, net
| |
$
|
1,412,397
| | |
$
|
1,197,513
| |
|
Identified intangible liabilities, net of accumulated amortization
of $60,937 and $72,528, respectively
| |
187,223
| | |
146,991
| |
|
Accounts payable and accrued expenses
| |
63,388
| | |
48,842
| |
|
Other liabilities
| |
16,627
|
| |
14,675
|
|
|
Total liabilities
| |
1,679,635
|
| |
1,408,021
|
|
|
Commitments and contingencies
| | | | |
|
Shareholders’ equity:
| | | | |
|
Common shares: $0.01 par value; 500,000,000 shares authorized and
107,564,687 and 99,754,900 shares issued and outstanding,
respectively
| |
1,075
| | |
997
| |
|
Additional paid-in capital
| |
683,889
| | |
488,375
| |
|
Accumulated deficit
| |
(10,479
|
)
| |
(29,066
|
)
|
|
Noncontrolling interests:
| | | | |
|
Redeemable noncontrolling interests
| |
209,202
| | |
35,451
| |
|
Noncontrolling interest in consolidated subsidiaries
| |
382
|
| |
360
|
|
|
Total equity
| |
884,069
|
| |
496,117
|
|
|
Total liabilities and equity
| |
$
|
2,563,704
|
| |
$
|
1,904,138
|
|
| | | | | | | |
|
|
|
| URBAN EDGE PROPERTIES |
| CONSOLIDATED STATEMENTS OF INCOME |
| (In thousands, except share and per share amounts) |
|
|
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| | 2017 |
| 2016 | | 2017 |
| 2016 |
| REVENUE | | | | | | | | |
|
Property rentals
| |
$
|
64,708
| | |
$
|
58,683
| | |
$
|
127,206
| | |
$
|
117,612
| |
|
Tenant expense reimbursements
| |
23,881
| | |
19,879
| | |
47,652
| | |
42,386
| |
|
Income from acquired leasehold interest
| |
—
| | |
—
| | |
39,215
| | |
—
| |
|
Management and development fees
| |
351
| | |
526
| | |
830
| | |
981
| |
|
Other income
| |
561
|
| |
369
|
| |
662
|
| |
1,546
|
|
|
Total revenue
| |
89,501
|
| |
79,457
|
| |
215,565
|
| |
162,525
|
|
| EXPENSES | | | | | | | | |
|
Depreciation and amortization
| |
23,701
| | |
13,558
| | |
39,529
| | |
27,473
| |
|
Real estate taxes
| |
14,711
| | |
12,723
| | |
28,103
| | |
25,972
| |
|
Property operating
| |
11,088
| | |
9,840
| | |
24,456
| | |
22,699
| |
|
General and administrative
| |
7,709
| | |
7,535
| | |
15,790
| | |
14,255
| |
|
Real estate impairment loss
| |
303
| | |
—
| | |
3,467
| | |
—
| |
|
Ground rent
| |
2,436
| | |
2,483
| | |
5,106
| | |
5,021
| |
|
Transaction costs
| |
132
| | |
34
| | |
183
| | |
84
| |
|
Provision for doubtful accounts
| |
906
|
| |
494
|
| |
1,099
|
| |
845
|
|
|
Total expenses
| |
60,986
|
| |
46,667
|
| |
117,733
|
| |
96,349
|
|
|
Operating income
| |
28,515
| | |
32,790
| | |
97,832
| | |
66,176
| |
|
Gain on sale of real estate
| |
—
| | |
15,618
| | |
—
| | |
15,618
| |
|
Interest income
| |
336
| | |
177
| | |
463
| | |
344
| |
|
Interest and debt expense
| |
(13,627
|
)
| |
(12,820
|
)
| |
(26,742
|
)
| |
(26,249
|
)
|
|
Loss on extinguishment of debt
| |
—
|
| |
—
|
| |
(1,274
|
)
| |
—
|
|
|
Income before income taxes
| |
15,224
| | |
35,765
| | |
70,279
| | |
55,889
| |
|
Income tax benefit (expense)
| |
(304
|
)
| |
306
|
| |
(624
|
)
| |
(30
|
)
|
|
Net income
| |
14,920
| | |
36,071
| | |
69,655
| | |
55,859
| |
|
Less (net income) loss attributable to noncontrolling interests in:
| | | | | | | | |
|
Operating partnership
| |
(1,326
|
)
| |
(2,201
|
)
| |
(5,464
|
)
| |
(3,355
|
)
|
|
Consolidated subsidiaries
| |
(11
|
)
| |
(2
|
)
| |
(22
|
)
| |
2
|
|
|
Net income attributable to common shareholders
| |
$
|
13,583
|
| |
$
|
33,868
|
| |
$
|
64,169
|
| |
$
|
52,506
|
|
| | | | | | | |
|
|
Earnings per common share - Basic:
| |
$
|
0.13
|
| |
$
|
0.34
|
| |
$
|
0.63
|
| |
$
|
0.53
|
|
|
Earnings per common share - Diluted:
| |
$
|
0.13
|
| |
$
|
0.34
|
| |
$
|
0.63
|
| |
$
|
0.53
|
|
|
Weighted average shares outstanding - Basic
| |
104,063
|
| |
99,274
|
| |
101,863
|
| |
99,270
|
|
|
Weighted average shares outstanding - Diluted
| |
104,260
|
| |
99,668
|
| |
111,224
|
| |
99,592
|
|
| | | | | | | | | | | |
|
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, 2017. Net
income is considered the most directly comparable GAAP measure. Refer to
"Non-GAAP Financial Measures" on page 3 for a description of FFO and FFO
as Adjusted.
|
| |
| |
| | Three Months Ended
June 30, 2017 | | Six Months Ended
June 30, 2017 |
| |
(in thousands)
|
|
(per share)
| |
(in thousands)
|
|
(per share)
|
|
Net income
| |
$
|
14,920
| | |
$
|
0.13
| | |
$
|
69,655
| | |
$
|
0.63
| |
|
Less (net income) attributable to noncontrolling interests in:
| | | | | | | | |
|
Operating partnership
| |
(1,326
|
)
| |
(0.01
|
)
| |
(5,464
|
)
| |
(0.05
|
)
|
|
Consolidated subsidiaries
| |
(11
|
)
| |
—
|
| |
(22
|
)
| |
—
|
|
|
Net income attributable to common shareholders
| |
13,583
| | |
0.12
| | |
64,169
| | |
0.58
| |
|
Adjustments:
| | | | | | | | |
|
Rental property depreciation and amortization
| |
23,452
| | |
0.21
| | |
39,031
| | |
0.35
| |
|
Real estate impairment loss
| |
303
| | |
—
| | |
3,467
| | |
0.03
| |
|
Limited partnership interests in operating partnership
| |
1,326
|
| |
0.01
|
| |
5,464
|
| |
0.05
|
|
|
FFO applicable to diluted common shareholders(1) | |
38,664
| | |
0.34
| | |
112,131
| | |
1.01
| |
| | | | | | | |
|
|
Transaction costs
| |
132
| | |
—
| | |
183
| | |
—
| |
|
Loss on extinguishment of debt
| |
—
| | |
—
| | |
1,274
| | |
0.01
| |
|
Tenant bankruptcy settlement income
| |
(486
|
)
| |
(0.01
|
)
| |
(513
|
)
| |
(0.01
|
)
|
|
Income from acquired leasehold interest(2) | |
—
|
| |
—
|
| |
(39,215
|
)
| |
(0.35
|
)
|
|
FFO as Adjusted applicable to diluted common shareholders(1) | |
$
|
38,310
|
| |
$
|
0.33
|
| |
$
|
73,860
|
| |
$
|
0.66
|
|
| | | | | | | |
|
|
Weighted average diluted common shares - FFO(1) | |
114,433
| | | | |
111,224
| | | |
| | | | | | | | | |
|
| (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.
|
| (2) | |
Income from acquired leasehold interest at the Shops at Bruckner
includes the write-off of unamortized intangible liability related
to the below-market ground lease acquired and existing straight-line
receivable balance.
|
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, 2017 | | Six Months Ended
June 30, 2017 |
|
Weighted average diluted shares used to calculate EPS
| |
104,260
| |
111,224
|
|
Assumed conversion of OP and LTIP Units to common stock(1) | |
10,173
| |
—
|
Weighted average diluted common shares used to calculate
FFO
per share
| |
114,433
| |
111,224
|
| |
| | | |
| (1) |
|
Operating Partnership ("OP") and Long-Term Incentive Plan ("LTIP")
Units are excluded from the calculation of earnings per diluted
share for the three months ended June 30, 2017, because their
inclusion is anti-dilutive and included for the six months ended
June 30, 2017, because their inclusion is 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,
2017 and 2016. Net income is considered the most directly comparable
GAAP measure. Refer to "Non-GAAP Financial Measures" on page 3 for a
description of cash NOI and same-property cash NOI.
|
| |
| |
| | Three Months Ended
June 30, 2017 | | Six Months Ended
June 30, 2017 |
| (Amounts in thousands) | | 2017 |
| 2016 | | 2017 |
| 2016 |
|
Net income
| |
$
|
14,920
| | |
$
|
36,071
| | |
$
|
69,655
| | |
$
|
55,859
| |
|
Add: income tax expense (benefit)
| |
304
|
| |
(306
|
)
| |
624
|
| |
30
|
|
|
Income before income taxes
| |
15,224
| | |
35,765
| | |
70,279
| | |
55,889
| |
|
Interest income
| |
(336
|
)
| |
(177
|
)
| |
(463
|
)
| |
(344
|
)
|
|
Gain on sale of real estate
| |
—
| | |
(15,618
|
)
| |
—
| | |
(15,618
|
)
|
|
Interest and debt expense
| |
13,627
| | |
12,820
| | |
26,742
| | |
26,249
| |
|
Loss on extinguishment of debt
| |
—
|
| |
—
|
| |
1,274
|
| |
—
|
|
|
Operating income
| |
28,515
| | |
32,790
| | |
97,832
| | |
66,176
| |
|
Depreciation and amortization
| |
23,701
| | |
13,558
| | |
39,529
| | |
27,473
| |
|
Real estate impairment loss
| |
303
| | |
—
| | |
3,467
| | |
—
| |
|
General and administrative expense
| |
7,709
| | |
7,535
| | |
15,790
| | |
14,255
| |
|
Transaction costs
| |
132
|
| |
34
|
| |
183
|
| |
84
|
|
|
NOI
| |
60,360
| | |
53,917
| | |
156,801
| | |
107,988
| |
|
Less: non-cash revenue and expenses
| |
(1,452
|
)
| |
(1,454
|
)
| |
(42,253
|
)
| |
(3,265
|
)
|
|
Cash NOI(1) | |
58,908
|
| |
52,463
|
| |
114,548
|
| |
104,723
|
|
|
Adjustments:
| | | | | | | | |
|
Cash NOI related to properties being redeveloped(1) | |
(5,414
|
)
| |
(4,851
|
)
| |
(10,868
|
)
| |
(9,525
|
)
|
|
Cash NOI related to properties acquired, disposed, or in foreclosure(1) | |
(4,050
|
)
| |
(477
|
)
| |
(5,628
|
)
| |
(970
|
)
|
|
Management and development fee income from non-owned properties
| |
(351
|
)
| |
(526
|
)
| |
(830
|
)
| |
(981
|
)
|
|
Tenant bankruptcy settlement income
| |
(486
|
)
| |
(340
|
)
| |
(513
|
)
| |
(1,490
|
)
|
|
Other(2) | |
20
|
| |
36
|
| |
12
|
| |
84
|
|
|
Subtotal adjustments
| |
(10,281
|
)
| |
(6,158
|
)
| |
(17,827
|
)
| |
(12,882
|
)
|
|
Same-property cash NOI
| |
$
|
48,627
|
| |
$
|
46,305
|
| |
$
|
96,721
|
| |
$
|
91,841
|
|
|
Adjustments:
| | | | | | | | |
|
Cash NOI related to properties being redeveloped
| |
5,414
|
| |
4,851
|
| |
10,868
|
| |
9,525
|
|
|
Same-property cash NOI including properties in redevelopment
| |
$
|
54,041
|
| |
$
|
51,156
|
| |
$
|
107,589
|
| |
$
|
101,366
|
|
| | | | | | | | | | | | | | | |
|
| (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.
|
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, 2017 and
2016. Net income is considered the most directly comparable GAAP
measure. Refer to "Non-GAAP Financial Measures" on page 3 for a
description of EBITDA and Adjusted EBITDA.
|
| |
| |
| | Three Months Ended June 30,
2017 | | Six Months Ended June 30,
2017 |
| (Amounts in thousands) | | 2017 |
| 2016 | | 2017 |
| 2016 |
|
Net income
| |
$
|
14,920
| | |
$
|
36,071
| | |
$
|
69,655
| | |
$
|
55,859
| |
|
Depreciation and amortization
| |
23,701
| | |
13,558
| | |
39,529
| | |
27,473
| |
|
Interest and debt expense
| |
13,627
| | |
12,820
| | |
26,742
| | |
26,249
| |
|
Income tax expense (benefit)
| |
304
|
| |
(306
|
)
| |
624
|
| |
30
|
|
|
EBITDA
| |
52,552
|
| |
62,143
|
| |
136,550
|
| |
109,611
|
|
|
Adjustments for Adjusted EBITDA:
| | | | | | | | |
|
Real estate impairment loss
| |
303
| | |
—
| | |
3,467
| | |
—
| |
|
Transaction costs
| |
132
| | |
34
| | |
183
| | |
84
| |
|
Loss on extinguishment of debt
| |
—
| | |
—
| | |
1,274
| | |
—
| |
|
Tenant bankruptcy settlement income
| |
(486
|
)
| |
(340
|
)
| |
(513
|
)
| |
(1,490
|
)
|
|
Gain on sale of real estate
| |
—
| | |
(15,618
|
)
| |
—
| | |
(15,618
|
)
|
|
Income from acquired leasehold interest
| |
—
|
| |
—
|
| |
(39,215
|
)
| |
—
|
|
|
Adjusted EBITDA
| |
$
|
52,501
|
| |
$
|
46,219
|
| |
$
|
101,746
|
| |
$
|
92,587
|
|
| | | | | | | | | | | | | | | |
|
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, 2017 |
|
Common shares outstanding
| |
107,564,687
|
|
OP and LTIP units (dilutive)
| |
12,830,232
|
|
Fully diluted common shares
| |
120,394,919
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170802006257/en/
Urban Edge Properties
Mark Langer, 212-956-2556
EVP and
Chief Financial Officer
Source: Urban Edge Properties