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Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real estate investment trust, today announced its fourth quarter and full year financial results for the fiscal year ended October 31, 2013. The company also announced an increase in the quarterly dividend rate on its Class A Common stock.
Diluted funds from operations (“FFO”) for the quarter ended October 31, 2013 amounted to $9,101,000 or $0.26 per Common share and $0.29 per Class A Common share compared with $5,945,000 or $0.19 per Common share and $0.20 per Class A Common share in last year’s fourth quarter. For the year ended October 31, 2013, diluted FFO amounted to $29,506,000 or $0.86 per Common Share and $0.95 per Class A Common share compared with $30,627,000 or $0.98 per Common Share and $1.08 per Class A Common share in fiscal 2012.
The FFO amounts above include several significant one-time items in fiscal 2013 and fiscal 2012.In an effort to assist investors in analyzing changes to FFO, we have included a second FFO reconciliation table which explains the effect of these one-time items on the company’s FFO per share.
Net income applicable to Common and Class A Common stockholders for the quarter ended October 31, 2013 amounted to $3,992,000 or $0.12 per diluted Common share and $0.13 per diluted Class A Common share compared with $1,579,000 or $0.05 per diluted Common share and $0.05 per diluted Class A Common share in last year’s fourth quarter. For the year ended October 31, 2013, net income applicable to Common and Class A Common stockholders was $10,613,000 or $0.31 per diluted Common share and $0.34 per diluted Class A Common share compared to $12,966,000 or $0.41 per diluted Common share and $0.46 per diluted Class A Common share in fiscal 2012.
The per share amounts for both FFO and net income in fiscal 2013 include the dilutive effect of the issuance of 2.5 million Class A Common shares in a follow-on public offering and 5.175 million shares of a new Series F preferred stock, both in October 2012. The common stock offering raised net proceeds of $48 million and the preferred stock offering raised an additional $125 million, which funds were not fully invested until May 2013. The primary purpose of the preferred stock offering was to fund the future redemption of the Series E and Series C preferred stock. Although the company incurred an additional $1.1 million in preferred stock dividends for the year ended October 31, 2013 as a result of the October 2012 preferred offering, the lower coupon rate of that offering will save the company $1.375 million in annual preferred dividends in perpetuity. The company redeemed the Series E preferred stock in November 2012 at a make-whole price of $25.77 per share, which included a $0.77 per share make-whole premium of $1.8 million over the $25 per share liquidation preference. In addition, the company re-purchased 44% of the Series C preferred stock outstanding at a slight premium, but for less than the cost of scheduled dividends to the stated call date. The company redeemed the remaining Series C preferred stock at $25 per share (par value) on May 29, 2013, which was the earliest date permissible. As a result of the redemption of the Series E preferred stock and the Series C preferred stock, the company incurred charges to expense the original issue costs of these preferred shares. The costs expensed, together with the Series E premium, amounted to $4.2 million, all of which was chargeable in the first three quarters of fiscal 2013. In addition, the per share amounts for both FFO and net income for the fiscal year ended October 31, 2013 include a $1.46 million gain on the sale of marketable securities. A majority of the securities sold had been purchased in November 2012 with proceeds from the company’s stock offerings completed in October 2012. The per share amounts for both FFO and net income also include property acquisition costs for the three and twelve months ended October 31, 2013 of $42,000 and $857,000, respectively.