NEW YORK, May 4 /PRNewswire-FirstCall/ -- New Plan Excel Realty
Trust, Inc. (NYSE:NXL) today announced financial results for the
three months ended March 31, 2006. Total rental revenues for the
first quarter of 2006 were $114.3 million as compared with $126.2
million in the first quarter of 2005. Net income available to
common stockholders was $33.2 million, or $0.31 per diluted share,
in the first quarter of 2006 compared with $33.5 million, or $0.32
per diluted share, in the first quarter of 2005. Funds from
operations (FFO) for the first quarter of 2006 was $53.9 million,
or $0.50 on a diluted per share basis, compared with $56.0 million,
or $0.53 on a diluted per share basis, in the first quarter of
2005. Net income available to common stockholders and FFO for the
first quarter of 2006 include approximately $0.05 per diluted share
of lease termination fees related primarily to three redevelopment
projects, as well as a re-tenanting effort. A reconciliation of net
income to FFO is presented in the attached table. Portfolio Review
At the end of the first quarter, the gross leasable area (GLA) for
the Company's stabilized community and neighborhood shopping
centers, including its pro rata share of unconsolidated joint
venture properties, was approximately 92.9 percent leased. The GLA
for the Company's total community and neighborhood shopping center
portfolio, which includes redevelopment properties and the
Company's pro rata share of unconsolidated joint venture
properties, was approximately 90.8 percent leased as of March 31,
2006. During the first quarter, 156 new leases, aggregating
approximately 699,000 square feet, were signed at an average annual
base rent (ABR) of $11.25 per square foot and 302 renewal leases,
aggregating approximately 1.5 million square feet, were signed at
an average ABR of $10.72 per square foot. The average increase in
ABR on a cash-basis was 14.5 percent for new leases signed on
comparable space and 8.7 percent for renewal leases. During the
first quarter, the Company completed eight redevelopment projects
(including two joint venture outparcel development projects) and
added six projects to its redevelopment pipeline. At March 31,
2006, the redevelopment pipeline was comprised of 44 redevelopment
projects (including seven Company outparcel development projects
and an aggregate of seven joint venture redevelopment and outparcel
development projects), the aggregate cost of which (including costs
incurred in prior years on these projects) is expected to be
approximately $301.8 million. Acquisitions and Dispositions On
February 2, 2006, the Company formed a second strategic joint
venture with a fund advised by JPMorgan Investment Management Inc.
to acquire high- quality institutional grade community and
neighborhood shopping centers on a nationwide basis. The joint
venture, which is called NP/I&G Institutional Retail Company
II, LLC, has an equity commitment of $150.0 million based on a 20
percent / 80 percent contribution split between the Company and a
fund advised by JPMorgan Investment Management Inc., respectively.
As the managing member, the Company will be responsible for
initiating acquisitions, as well as providing property management
and leasing services. During the first quarter of 2006, the Company
acquired, including through co-investments with its joint venture
partners, four shopping centers; three buildings adjacent to
shopping centers owned by the Company; and one land parcel. The
acquisitions totaled approximately 1.0 million square feet of GLA
and approximately 18 acres and were acquired for an aggregate
purchase price of approximately $78.5 million. Acquisitions
completed during the first quarter are summarized below: Company
Portfolio (aggregate purchase price of approximately $7.1 million)
- On January 27, 2006, the Company acquired a 6,580 square foot
building located in Tarpon Springs, Florida immediately adjacent to
Tarpon Mall, a shopping center owned by the Company, for
approximately $2.3 million. - On February 21, 2006, the Company
acquired a 94,977 square foot building located in Hendersonville,
Tennessee immediately adjacent to Hazel Path, a shopping center
owned by the Company, for approximately $4.8 million. CA New Plan
Acquisition Fund, LLC (aggregate purchase price of approximately
$32.9 million) - On February 9, 2006, CA New Plan Acquisition Fund,
LLC, a joint venture in which the Company holds a 10 percent
interest, acquired a portfolio of three shopping centers for an
aggregate of approximately $32.9 million. The portfolio includes:
Augusta West Plaza, a 207,823 square foot shopping center located
in Augusta, Georgia and anchored by Burlington Coat Factory, Dollar
Tree and Regal Cinemas; Banks Station, a 176,451 square foot
shopping center located in Fayetteville, Georgia and anchored by
Cinemark USA, Food Depot, and Staples; and Shelby Square, a 155,969
square foot shopping center located in Memphis, Tennessee and
anchored by Fred's and Wal-Mart Neighborhood Market. Galileo
America LLC (aggregate purchase price of approximately $27.7
million) - On January 10, 2006, Galileo America LLC, a joint
venture in which the Company holds a 5 percent interest, acquired
Coastal Landing, an 18-acre land parcel located in Brooksville,
Florida, immediately adjacent to Coastal Way, a community shopping
center owned by Galileo America LLC, for approximately $3.8
million. - On February 2, 2006, Galileo America LLC acquired
Marketplace at Matteson, a 309,864 square foot shopping center
located in Matteson, Illinois and anchored by Advance Auto, A.J.
Wright, Burlington Coat Factory and Cub Foods, for approximately
$23.9 million. NP/I&G Institutional Retail Company, LLC
(aggregate purchase price of approximately $10.8 million) - On
March 1, 2006, NP/I&G Institutional Retail Company, LLC, a
joint venture with JPMorgan Investment Management in which the
Company holds a 20 percent interest, acquired a 58,473 square foot
building occupied by Ukrops Supermarket and located in Glenn Allen,
Virginia immediately adjacent to Westpark Shopping Center, a
shopping center owned by the joint venture, for approximately $10.8
million. During the first quarter of 2006, the Company generated an
aggregate of approximately $19.5 million of proceeds through the
sale of four shopping centers and two land parcels. Properties sold
during the quarter include: Cross Pointe Marketplace, a 73,788
square foot shopping center located in Richmond, Virginia; South
Plaza, a 143,620 square foot shopping center located in Norwich,
New York; Westgate Manor, a 75,813 square foot shopping center
located in Rome, New York; Westmoreland Heights, a 108,033 square
foot shopping center located in Dallas, Texas; 1.6 acres of land at
Nine Mile Square in Pensacola, Florida; and 3.0 acres of land in
Frisco, Texas sold by BPR Land Partnership, L.P., a joint venture
in which the Company holds a 50 percent interest. Balance Sheet
Position As of March 31, 2006, the Company had total book assets of
approximately $3.4 billion and a total debt / undepreciated book
value ratio of 43.9 percent. The Company's debt for the three
months ended March 31, 2006 had an overall weighted average current
interest rate of 6.1 percent and a weighted average maturity of 7.5
years. Approximately 81 percent of the Company's total debt is
fixed rate debt, including the impact of the Company's interest
rate swaps. 2006 Earnings Guidance Based upon the Company's first
quarter 2006 results of operations, the Company is revising upwards
its 2006 expectations. The Company has revised its 2006 net income
available to common stockholders per share ("EPS") and FFO per
share estimates, both on a diluted basis, to $1.04 to $1.08 and
$1.83 to $1.87, respectively, from $1.01 to $1.07 and $1.80 to
$1.86, respectively. The Company's revised guidance for 2006 EPS
and FFO is reconciled below: 2006 EPS - Diluted $1.04 - $1.08 Add:
Depreciation and amortization 0.84 Deduct: Gain on sale of
discontinued operations (0.05) FFO per Share - Diluted $1.83 -
$1.87 See footnote 3 in the attached table for an explanation of
the usefulness of FFO. Due to the uncertain nature of property
dispositions and impairments, the Company has assumed no additional
impairment of real estate for 2006 in its revised guidance. Any
impairment of real estate will negatively impact both net income
and FFO, which impact may be material. Dividend For the second
quarter of 2006, the Company's Board of Directors declared a cash
dividend of $0.3125 per common share (CUSIP #648053106). On an
annualized basis, this is the equivalent of $1.25 per share. The
dividend is payable on July 17, 2006 to common stockholders of
record on July 3, 2006. The Company's shares go ex-dividend on June
29, 2006. 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 July 3, 2006, payable on July 17, 2006.
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 July 3, 2006, payable on July 17, 2006. Management
Comment "The strategic repositioning we executed in 2005 continues
to provide favorable operating metrics. Redevelopment is a larger
percentage of our net operating income, leasing productivity has
improved over last year and our balance sheet remains strong and
flexible," commented Glenn J. Rufrano, Chief Executive Officer.
Conference Call The Company will be hosting a teleconference on
Thursday, May 4, 2006 at 2:00 PM ET. The teleconference can be
accessed by dialing 1-800-322-2803 (International: 1-617-614-4925)
or via the web at http://www.newplan.com/ under Investor
Information; Audio Archives. Please refer to passcode #31839493. A
replay of the teleconference will be available through midnight ET
on May 11, 2006 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
#62579585. 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
2006 Annual Meeting of Shareholders for Tuesday, May 16, 2006 at
9:00 AM ET. The meeting will be held at the Harvard Club of New
York City, 35 West 44th Street, New York, NY 10036. The record date
for determination of shareholders entitled to vote was March 6,
2006. New Plan is one of the nation's largest real estate
companies, focusing on the ownership, management and development of
community and neighborhood shopping centers. The Company operates
as a self-administered and self- managed REIT, with a national
portfolio of 477 properties, including 170 properties held through
joint ventures, and total assets of approximately $3.4 billion. The
properties are strategically located across 39 states and include
458 community and neighborhood shopping centers, primarily grocery
or name-brand discount chain anchored, with approximately 66.7
million square feet of gross leasable area, and 19 related retail
real estate assets, with approximately 1.1 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 "Risk Factors" in the Company's Annual Report on
Form 10-K for the year ended December 31, 2005, 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 and footnotes) Three Months Ended March 31, March 31, 2006
2005 Rental Revenues: Rental income $ 89,951 $ 98,619 Percentage
rents 2,376 2,507 Expense reimbursements 21,978 25,114 TOTAL RENTAL
REVENUES 114,305 126,240 Rental Operating Expenses: Operating costs
18,816 21,441 Real estate taxes 14,345 16,055 Provision for
doubtful accounts 2,196 2,710 TOTAL RENTAL OPERATING EXPENSES
35,357 40,206 NET OPERATING INCOME (1) 78,948 86,034 Other Income:
Fee income 4,283 1,579 Interest, dividend and other income 835 955
Equity in income of unconsolidated ventures 1,180 689 TOTAL OTHER
INCOME 6,298 3,223 Other Expenses: Interest expense 22,781 27,331
Depreciation and amortization 23,235 25,213 General and
administrative 7,011 4,585 TOTAL OTHER EXPENSES 53,027 57,129
Income before real estate sales, impairment of real estate and
minority interest 32,219 32,128 Gain on sale of real estate - -
Impairment of real estate - - Minority interest in income of
consolidated partnership and joint ventures (150) (282) INCOME FROM
CONTINUING OPERATIONS 32,069 31,846 Discontinued Operations:
Results of discontinued operations 818 1,837 Gain on sale of
discontinued operations (2) 5,720 5,004 Impairment of real estate
held for sale (98) - INCOME FROM DISCONTINUED OPERATIONS 6,440
6,841 NET INCOME $ 38,509 $ 38,687 Preferred dividends (5,484)
(5,467) NET INCOME AVAILABLE TO COMMON STOCKHOLDERS - BASIC 33,025
33,220 Minority interest in income of consolidated partnership 150
282 NET INCOME AVAILABLE TO COMMON STOCKHOLDERS - DILUTED $ 33,175
$ 33,502 Net income per common share - basic $ 0.32 $ 0.32 Net
income per common share - diluted 0.31 0.32 Funds from operations:
(3) Net income available to common stockholders - diluted $ 33,175
$ 33,502 Deduct: Minority interest in income of consolidated
partnership, excluding gain allocation (150) (282) Net income
available to common stockholders - basic 33,025 33,220 Add:
Depreciation and amortization: Continuing operations real estate
assets 22,342 24,805 Discontinued operations real estate assets 40
883 Pro rata share of joint venture real estate assets 3,847 565
Deduct: Gain on sale of real estate (4) - - Gain on sale of
discontinued operations (2) (4) (5,532) (3,732) Pro rata share of
joint venture gain on sale of real estate (4) - - FUNDS FROM
OPERATIONS - BASIC 53,722 55,741 Add: Minority interest in income
of consolidated partnership, excluding gain allocation 150 282
FUNDS FROM OPERATIONS - DILUTED $ 53,872 $ 56,023 Funds from
operations per share - basic $ 0.52 $ 0.54 Funds from operations
per share - diluted 0.50 0.53 NEW PLAN EXCEL REALTY TRUST, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands,
except per share amounts and footnotes) Three Months Ended March
31, March 31, 2006 2005 Funds from operations - diluted $ 53,872 $
56,023 Add: Impairment of real estate - - Impairment of real estate
held for sale 98 - FUNDS FROM OPERATIONS - DILUTED (prior
calculation) $ 53,970 $ 56,023 Funds from operations per share -
diluted (prior calculation) $ 0.50 $ 0.53 Weighted average common
shares outstanding - basic 104,257 102,820 ERP partnership units
2,924 1,964 Options and contingently issuable shares 1,350 1,042
Convertible debt - 165 Restricted stock 71 144 Weighted average
common shares outstanding - diluted 108,602 106,135 (1) Net
operating income ("NOI") is provided here as a supplemental measure
of operating performance. NOI is defined as property revenues less
property operating expenses, excluding depreciation and
amortization and interest expense, and excludes NOI from properties
classified as discontinued operations under Statement of Financial
Accounting Standards No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets. The Company believes that this
presentation of NOI is helpful to investors as a measure of 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 depreciation and amortization and
interest expense, which can make periodic and peer analyses of
operating performance more difficult to compare. NOI should not,
however, be considered as an alternative to net income (calculated
in accordance with generally accepted accounting principles
("GAAP")) as an indicator of the Company's financial performance.
(2) For the three months ended March 31, 2005, balance includes
approximately $3.314 million, which represents the Company's pro
rata share of the gain on the sale of Rodney Village, a property
previously owned by Benbrooke Ventures, a joint venture in which
the Company previously held a 50 percent interest. (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 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
historic operational performance and because it excludes other
times 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-Q for the quarter ended March 31, 2006 should
be read in conjunction with the above information. DATASOURCE: New
Plan Excel Realty Trust, Inc. CONTACT: Stacy Slater, Senior Vice
President - Corporate Communications, New Plan Excel Realty Trust,
Inc., +1-212-869-3000, Web site: http://www.newplanexcel.com/
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