New Plan Excel (NYSE:NXL)
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New Plan Excel Realty Trust Reports Fourth Quarter and Year-End
2004 Results
NEW YORK, Feb. 24 /PRNewswire-FirstCall/ -- New Plan Excel Realty Trust, Inc.
(NYSE:NXL) today announced financial results for the three and twelve months
ended December 31, 2004.
Total rental revenues for the fourth quarter of 2004 increased to $127.7
million from $117.9 million in the fourth quarter of 2003. Net income
available to common stockholders was $28.8 million, or $0.27 per diluted share,
in the fourth quarter of 2004 compared with $24.7 million, or $0.24 per diluted
share, in the fourth quarter of 2003. Funds from operations (FFO) for the
fourth quarter of 2004 was $51.6 million, or $0.49 on a diluted per share
basis, compared with $44.3 million, or $0.44 on a diluted per share basis, in
the fourth quarter of 2003 (which included $0.02 per diluted share related to
impairment of real estate). A reconciliation of net income to FFO is presented
in the attached table.
Total rental revenues for the year ended December 31, 2004 were $495.5 million
as compared with $470.7 million for the year ended December 31, 2003. Net
income available to common stockholders was $113.3 million, or $1.10 per
diluted share, in 2004 compared with $108.8 million, or $1.08 per diluted
share, in 2003. FFO for 2004 was $210.3 million, or $2.04 on a diluted per
share basis, compared with $185.7 million, or $1.85 on a diluted per share
basis, in 2003 (which included $0.11 per diluted share related to impairment of
real estate and original issuance costs associated with the redemption of
preferred stock).
Property Portfolio
At the end of the fourth quarter, the gross leasable area (GLA) for the
Company's total stabilized community and neighborhood shopping centers,
including its pro rata share of joint venture projects, was approximately 93.4
percent leased. The GLA for the Company's total portfolio, including its pro
rata share of joint venture projects (Total Portfolio), was approximately 91.7
percent leased at December 31, 2004. The average annual base rent (ABR) at
December 31, 2004 for the total portfolio was $8.25 per leased square foot.
During the fourth quarter, 172 new leases, aggregating approximately 947,000
square feet, were signed at an average ABR of $9.94 per square foot. Also
during the quarter, 229 renewal leases, aggregating approximately 1.1 million
square feet, were signed at an average ABR of $8.89 per square foot, an
increase of approximately 9.2 percent over the expiring leases. During 2004,
the Company executed a total of 1,449 new and renewal leases aggregating
approximately 7.3 million square feet, including 653 new leases, totaling
approximately 3.9 million square feet, which were signed at an average ABR of
$9.33 per square foot and 796 renewal leases, totaling approximately 3.4
million square feet, which were signed at an average ABR of $9.68 per square
foot, an increase of approximately 7.4 percent over the expiring leases.
During the fourth quarter, the Company completed the redevelopment of 12
shopping centers and added eight projects to its redevelopment pipeline,
increasing the pipeline to 38 redevelopment projects (including outparcel
development and joint venture redevelopment projects), the aggregate cost of
which (including costs incurred in prior years on these projects) is expected
to be approximately $144.5 million. In total for 2004, the Company completed
30 redevelopment projects at an aggregate cost of $87.4 million (including
costs incurred in prior years on these projects).
Acquisitions and Dispositions
During the fourth quarter of 2004, the Company acquired, including through
co-investments with its joint venture partners, four shopping centers. The
shopping centers totaled approximately 587,000 square feet of GLA and were
acquired for an aggregate purchase price of approximately $89.7 million. During
2004, the Company acquired, including through co-investments with its joint
venture partners, an aggregate of 18 shopping centers, the remaining 50 percent
interests in two shopping centers in which the Company owned the other 50
percent interests, and two land parcels for an aggregate purchase price of
approximately $434.5 million. The shopping centers totaled approximately 3.5
million square feet of gross leasable area and the land parcels totaled
approximately 24 acres. Acquisitions completed during the fourth quarter are
summarized below:
* On October 8, 2004, NP/I&G Institutional Retail Company, LLC, the
Company's joint venture with JPMorgan Fleming Asset Management, acquired
Riverplace Shopping Center, a 257,912 square foot shopping center
located in Jacksonville, Florida and anchored by Bealls, Sears,
Stein Mart and T.J. Maxx, for $34.3 million.
* On November 22, 2004, NP/I&G Institutional Retail Company, LLC acquired
Skytop Pavilion, a 133,631 square foot shopping center located in
Cincinnati, Ohio and anchored by bigg's (a subsidiary of SUPERVALU), for
approximately $20.3 million.
* On November 23, 2004, the Company acquired Silver Pointe Shopping
Center, an 86,141 square foot shopping center located in Fenton,
Michigan and anchored by Sears, for approximately $10.2 million,
including approximately $7.2 million of assumed mortgage indebtedness.
The property is adjacent to Silver Lake, a neighborhood shopping center
also owned by the Company.
* On December 10, 2004, the Company acquired The Shoppes at Southside, a
109,113 square foot shopping center located in Jacksonville, Florida and
anchored by Best Buy, David's Bridal and Sports Authority, for
approximately $25.0 million.
During the fourth quarter of 2004, the Company generated an aggregate of
approximately $9.7 million of proceeds through the sale of three properties.
Properties sold during the quarter include Glengary Shopping Center, a 105,601
square foot shopping center located in Westerville, Ohio; Old Egypt, a 14,490
square foot single tenant building located in Magnolia, Texas; and a 3,800
square foot single tenant Hardee's located in Hanover, Pennsylvania. During
2004, the Company generated an aggregate of approximately $62.2 million of
proceeds through the culling of non-core and non-strategic properties, the
disposition of certain properties held through joint ventures and the transfer
of one property to a joint venture.
Balance Sheet Position
The Company completed the 2004 fiscal year with total book assets of
approximately $3.8 billion and a total debt / undepreciated book value ratio of
46.9 percent. The Company's debt for the three months ended December 31, 2004
had an overall weighted average current interest rate of 5.6 percent and a
weighted average maturity of 6.5 years. Approximately 78 percent of the
Company's total debt is fixed rate debt, including the impact of the Company's
interest rate swaps.
On January 13, 2005, the Company completed a public offering of $100 million
aggregate principal amount of unsecured, 10-year fixed rate notes with a coupon
of 5.30 percent. The notes are due on January 15, 2015 and were priced at
99.930 percent of par value to yield 5.309 percent. Net proceeds from the
offering were used to repay a portion of the borrowings under the Company's
$350 million revolving credit facility.
Management Changes
As previously announced, Scott MacDonald is resigning in April as President and
Chief Operating Officer of New Plan in order to relocate to the West Coast with
his family. As a result, the Company has put into effect a series of
management changes designed to assume the primary responsibilities of Mr.
MacDonald. Effective March 1, 2005, the Company is promoting Michael A.
Carroll to Executive Vice President, Real Estate Operations. In this role, he
will be responsible for all property operations and will serve as the primary
liaison between the Company's regional asset managers and its corporate office,
while also continuing as one of the senior relationship managers for the
Company's national and regional tenants. Mr. Carroll joined the Company in
1992 and most recently held the position of Senior Vice President, Director of
Redevelopment. Greg Levine is transitioning to the position of Vice President,
Director of Redevelopment from his previous post of Vice President, Leasing -
Northeast Region. In addition, Dean R. Bernstein is being promoted to the
position of Executive Vice President, Acquisitions / Dispositions from Senior
Vice President, Acquisitions / Dispositions.
Dividend
For the first quarter of 2005, the Company's Board of Directors declared a cash
dividend of $0.4125 per common share (CUSIP #648053106). On an annualized
basis, this is the equivalent of $1.65 per share. The dividend is payable on
April 15, 2005 to common stockholders of record on April 1, 2005. New Plan
Excel Realty Trust, Inc. shares go ex-dividend on March 30, 2005. The Board of
Directors also declared a dividend of $0.975 per depositary share on its 7.8
percent Series D Cumulative Voting Step-Up Premium Rate Preferred Stock (CUSIP
#648053700) to stockholders of record on April 1, 2005, payable on April 15,
2005. In addition, the Board of Directors declared a dividend of $0.47656 per
depositary share on its 7.625 percent Series E Cumulative Redeemable Preferred
Stock (CUSIP #6480538090) to stockholders of record on April 1, 2005, payable
on April 15, 2005.
Management Comment
"We have once again met or exceeded our operating and financial expectations
for the year, validating our strategy of owning and operating a national,
diversified portfolio of community and neighborhood shopping centers supported
by talented staff, an established infrastructure and advanced technology,"
commented Glenn J. Rufrano, Chief Executive Officer. "The management changes
announced this morning as a result of Scott MacDonald's departure demonstrate
the deepening strength of our management bench and our commitment to grow from
within. I am confident that we have the right team in place to move forward,"
he concluded.
Conference Call
The Company will be hosting a teleconference on Thursday, February 24, 2005 at
2:00 PM ET. The teleconference can be accessed by dialing 1-888-396-2369
(International: 1-617-847-8710) or via the web at http://www.newplan.com/ under
Investor Information; Audio Archives. Please refer to passcode #93882554. A
replay of the teleconference will be available through midnight ET March 3,
2005 by dialing 1-888-286-8010 (International: 1-617-801-6888) or via the web
at http://www.newplan.com/ under Investor Information; Audio Archives. Please
refer to passcode #18687094.
The Company's Supplemental Disclosure package will be furnished today on a
Current Report on Form 8-K and will also be available on the Company's website
at http://www.newplan.com/ under Investor Information; Financial Reports. These
materials are also available in e-mail or hard copy formats by contacting New
Plan Corporate Communications at or 1-800-468-7526.
Annual Meeting of Shareholders
The Company's Board of Directors has scheduled the Annual Meeting of
Shareholders for Wednesday, May 11, 2005 at 9:00 AM ET. The meeting will be
held at The Cornell Club of New York, The Ivy Room, 6 East 44th Street, New
York, NY 10017. The record date for determination of shareholders entitled to
vote is March 1, 2005.
New Plan Excel Realty Trust, Inc. is one of the nation's largest real estate
companies, focusing on the ownership and management of community and
neighborhood shopping centers. The Company operates as a self-administered and
self-managed REIT, with a national portfolio of 404 properties, including 26
properties held through joint ventures, and total assets of approximately $3.8
billion. Its properties are strategically located across 35 states and include
384 community and neighborhood shopping centers, primarily grocery or
name-brand discount chain anchored, with approximately 56.0 million square feet
of gross leasable area, and 20 related retail real estate assets, with
approximately 1.8 million square feet of gross leasable area. For additional
information, please visit http://www.newplan.com/.
Certain statements in this release that are not historical fact may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause the actual
results of the Company to differ materially from historical results or from any
results expressed or implied by such forward-looking statements, including
without limitation: national and local economic, business, real estate and
other market conditions; the competitive environment in which the Company
operates; financing risks; possible future downgrades in our credit ratings;
property ownership / management risks; the level and volatility of interest
rates and changes in capitalization rates with respect to the acquisition and
disposition of properties; financial stability of tenants; the Company's
ability to maintain its status as a REIT for federal income tax purposes;
acquisition, disposition, development and joint venture risks, including risks
that developments and redevelopments are not completed on time or on budget and
strategies, actions and performance of affiliates that the Company may not
control; potential environmental and other liabilities; and other factors
affecting the real estate industry generally. The Company refers you to the
documents filed by the Company from time to time with the Securities and
Exchange Commission, specifically the section titled "Business-Risk Factors" in
the Company's Annual Report on Form 10-K for the year ended December 31, 2004,
which discuss these and other factors that could adversely affect the Company's
results.
NEW PLAN EXCEL REALTY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2004 2003 2004 2003
Rental Revenues:
Rental income $100,844 $ 90,851 $389,510 $364,659
Percentage rents 1,210 2,151 6,613 6,943
Expense reimbursements 25,683 24,933 99,414 99,066
TOTAL RENTAL REVENUES 127,737 117,935 495,537 470,668
Rental Operating Expenses:
Operating costs 23,831 23,295 86,257 89,041
Real estate and
other taxes 15,710 14,876 61,842 58,833
Provision for
doubtful accounts 2,961 2,600 10,104 7,629
TOTAL RENTAL
OPERATING EXPENSES 42,502 40,771 158,203 155,503
NET OPERATING INCOME 85,235 77,164 337,334 315,165
Other Income:
Interest, dividend
and other income 1,767 2,016 8,329 9,419
Equity in income of
unconsolidated ventures 410 1,005 1,513 3,438
TOTAL OTHER INCOME 2,177 3,021 9,842 12,857
Other Expenses:
Interest expense 26,967 25,015 106,054 101,629
Depreciation and
amortization 23,696 19,580 89,394 76,113
General and
administrative 4,744 5,089 19,394 19,816
TOTAL OTHER EXPENSES 55,407 49,684 214,842 197,558
Income before real
estate sales,
impairment of real
estate and
minority interest 32,005 30,501 132,334 130,464
Gain on sale of
real estate (1) - - 1,217 -
Impairment of
real estate - (2,412) (43) (3,536)
Minority interest
in income of
consolidated
partnership and
joint ventures 86 (385) (853) (1,555)
INCOME FROM
CONTINUING OPERATIONS 32,091 27,704 132,655 125,373
Discontinued Operations:
Results of
discontinued operations 586 1,274 2,512 6,583
Gain (loss) on sale
of discontinued
operations (2) 1,509 615 (1,139) 4,018
Impairment of real
estate held for sale - - (88) (6,953)
INCOME FROM
DISCONTINUED
OPERATIONS 2,095 1,889 1,285 3,648
NET INCOME $ 34,186 $ 29,593 $133,940 $129,021
Preferred dividends (5,462) (5,279) (21,470) (21,170)
Premium on redemption
of preferred stock - - - (630)
NET INCOME AVAILABLE
TO COMMON STOCKHOLDERS
- BASIC 28,724 24,314 112,470 107,221
Minority interest in
income of consolidated
partnership 44 385 796 1,555
NET INCOME AVAILABLE
TO COMMON STOCKHOLDERS
- DILUTED $ 28,768 $ 24,699 $113,266 $108,776
Net income per
common share - basic $ 0.28 $ 0.25 $ 1.11 $ 1.10
Net income per
common share - diluted 0.27 0.24 1.10 1.08
Funds from operations:(3)
Net income available
to common stockholders
- diluted $ 28,768 $ 24,699 $113,266 $108,776
Deduct:
Minority interest
in income of
consolidated
partnership (44) (385) (796) (1,555)
Net income available
to common stockholders
- basic 28,724 24,314 112,470 107,221
Add:
Depreciation and
amortization:
Continuing operations
real estate assets 23,696 19,580 89,394 76,113
Discontinued
operations real
estate assets 165 382 1,184 2,000
Pro rata share of
joint venture
real estate assets 493 300 1,629 1,016
NEW PLAN EXCEL REALTY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2004 2003 2004 2003
Deduct:
Gain on sale of
real estate (1)(4) - - (1,217) -
(Gain) loss on sale
of discontinued
operations (4) (1,509) (615) 5,622 (1,534)
Pro rata share of
joint venture
loss (gain) on sale
of real estate (4) - - 433 (643)
FUNDS FROM OPERATIONS
- Basic 51,569 43,961 209,515 184,173
Add:
Minority interest
in income of
consolidated
partnership 44 385 796 1,555
FUNDS FROM OPERATIONS
- DILUTED $ 51,613 $ 44,346 $210,311 $185,728
Funds from operations
per share - basic $ 0.50 $ 0.45 $ 2.08 $ 1.89
Funds from operations
per share - diluted 0.49 0.44 2.04 1.85
Funds from
operations - diluted $ 51,613 $ 44,346 $210,311 $185,728
Add:
Impairment of real estate - 2,412 43 3,536
Impairment of real
estate held for sale - - 88 6,953
Premium on redemption
of preferred stock - - - 630
FUNDS FROM OPERATIONS
- DILUTED
(prior calculation) $ 51,613 $ 46,758 $210,442 $196,847
Funds from operations
per share - diluted
(prior calculation) $ 0.49 $ 0.46 $ 2.04 $ 1.96
Weighted average
common shares
outstanding
- basic 102,684 97,758 100,894 97,318
ERP partnership units 1,651 2,178 1,394 2,178
Options 1,117 1,044 1,057 773
Weighted average
common shares
outstanding
- diluted 105,452 100,980 103,345 100,269
(1) For the twelve months ended December 31, 2004, balance includes
approximately $1.217 million of previously deferred gain incurred in
connection with the Company's sale of 70 percent of its interest in
Arapahoe Crossings, LP in 2003.
(2) For the twelve months ended December 31, 2004, balance includes
approximately $3.876 million of previously deferred gain incurred in
connection with the Company's sale of 21.5 acres of land at The Mall
at 163rd Street in 2003.
(3) Funds from Operations ("FFO") is a widely used performance measure for
real estate companies and is provided here as a supplemental measure
of operating performance. The Company calculates FFO in accordance
with the best practices described in the April 2002 National Policy
Bulletin of the National Association of Real Estate Investment Trusts
(the "White Paper"). The White Paper defines FFO as net income
(computed in accordance with generally accepted accounting principles
("GAAP")), excluding gains (or losses) from sales of property, plus
depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures.
On October 1, 2003, the National Association of Real Estate Investment
Trusts ("NAREIT"), based on discussions with the Securities and
Exchange Commission ("SEC"), provided revised guidance regarding the
calculation of FFO. This revised guidance provides that impairments
should not be added back to net income in calculating FFO and that
original issuance costs associated with preferred stock that has been
redeemed should be factored into the calculation of FFO. Prior to
this pronouncement, the Company had added back impairments in
calculating FFO, in accordance with prior NAREIT guidance, and had not
factored in original issuance costs of preferred stock that had been
redeemed in the calculation of FFO. The Company presents FFO in
accordance with NAREIT's revised guidance. To assist investors in
understanding the impact of these changes, the Company also is
presenting FFO in accordance with the methodology historically used by
the Company ("prior calculation").
Given the nature of the Company's business as a real estate owner and
operator, the Company believes that FFO is helpful to investors as a
starting point in measuring its operational performance because it
excludes various items included in net income that do not relate to or
are not indicative of its operating performance such as gains (or
losses) from sales of property and depreciation and amortization,
which can make periodic and peer analyses of operating performance
more difficult to compare. The Company also believes that the
presentation of FFO consistent with the guidance that was in effect
until October 1, 2003 is further helpful to investors because it
assists investors in evaluating the Company's historical operational
performance and because it excludes other items included in the
revised calculation of FFO such as impairments which also do not
relate to and are not indicative of the Company's operating
performance. FFO should not, however, be considered as an alternative
to net income (determined in accordance with GAAP) as an indicator of
the Company's financial performance, is not an alternative to cash
flow from operating activities (determined in accordance with GAAP) as
a measure of the Company's liquidity, and is not indicative of funds
available to fund the Company's cash needs, including its ability to
make distributions. In addition, the Company's computation of FFO may
differ in certain respects from the methodology utilized by other
REITs to calculate FFO and, therefore, may not be comparable to such
other REITs.
(4) Excludes gain / loss on sale of land.
The above does not purport to disclose all items required under GAAP.
The Company's Form 10-K for the year ended December 31, 2004 should be read in
conjunction with the above information.
DATASOURCE: New Plan Excel Realty Trust, Inc.
CONTACT: Stacy Lipschitz-Slater, Senior Vice President - Corporate
Communications of New Plan Excel Realty Trust, Inc., +1-212-869-3000 ext. 3359
or
Web site: http://www.newplanexcel.com/