NEW YORK, Nov. 2 /PRNewswire-FirstCall/ -- New Plan Excel Realty
Trust, Inc. (NYSE:NXL) today announced financial results for the
three and nine months ended September 30, 2006. Total rental
revenues for the third quarter of 2006 were $113.0 million as
compared with $111.5 million in the third quarter of 2005. Net
income available to common stockholders was $27.9 million, or $0.25
per diluted share, in the third quarter of 2006 compared with
$194.9 million, or $1.82 per diluted share, in the third quarter of
2005. Funds from operations (FFO) for the third quarter of 2006 was
$47.8 million, or $0.44 per diluted share, compared with $30.7
million, or $0.29 per diluted share, in the third quarter of 2005.
A reconciliation of net income to FFO is presented in the attached
table. Net income available to common stockholders for the third
quarter of 2005 includes a gain on sale of real estate of $1.75 per
diluted share related to the Company's sale of 69 community and
neighborhood shopping centers to a joint venture for approximately
$968 million (together with a series of related transactions that
occurred simultaneously with the closing of the property transfer,
the "Galileo Transactions") during the third quarter of 2005. In
addition, net income available to common stockholders and FFO for
the third quarter of 2005 include charges of $0.17 per diluted
share related to the Galileo Transactions and the redemption of all
$250.0 million of the Company's previously outstanding 5.875
percent senior unsecured notes that were due June 15, 2007.
Financial results for the nine months ended September 30, 2005
include the gain on sale of real estate of $1.75 per diluted share
and charges of $0.17 per diluted share as described above. Total
rental revenues for the nine months ended September 30, 2006 were
$338.1 million as compared with $366.4 million in the first nine
months of 2005. Net income available to common stockholders was
$90.5 million, or $0.83 per diluted share, in the first nine months
of 2006, compared with $263.9 million, or $2.48 per diluted share,
in the first nine months of 2005. FFO for the first nine months of
2006 was $152.5 million, or $1.40 per diluted share, compared with
$143.1 million, or $1.34 per diluted share, in the first nine
months of 2005. Portfolio Review At the end of the third 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
93.3 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 90.9
percent leased as of September 30, 2006. During the third quarter,
158 new leases, aggregating approximately 667,000 square feet, were
signed at an average annual base rent (ABR) of $12.13 per square
foot and 247 renewal leases, aggregating approximately 1.2 million
square feet, were signed at an average ABR of $9.38 per square
foot. The average increase in ABR on a cash-basis was 14.5 percent
for new leases signed on comparable space and 7.9 percent for
renewal leases. On a GAAP- basis, the average increase in ABR was
23.4 percent for new leases signed on comparable space and 12.8
percent for renewal leases. During the first nine months of 2006,
the Company executed a total of 1,230 new and renewal leases
aggregating approximately 6.5 million square feet, including 450
new leases, aggregating approximately 2.3 million square feet,
which were signed at an average ABR of $11.02 per square foot and
780 renewal leases, aggregating approximately 4.2 million square
feet, which were signed at an average ABR of $9.61 per square foot.
The average increase in ABR on a cash-basis was 14.4 percent for
new leases signed on comparable space and 8.5 percent for renewal
leases. During the third quarter, the Company completed five
redevelopment projects (including two Company outparcel development
projects and one joint venture redevelopment project) and added
seven projects to its redevelopment pipeline (including three
Company outparcel development projects and two joint venture
redevelopment projects). At September 30, 2006, the redevelopment
pipeline was comprised of 46 redevelopment projects (including six
Company outparcel development projects and an aggregate of nine
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 $320.5
million. Acquisitions and Dispositions During the third quarter of
2006, the Company acquired two shopping centers and a land parcel
totaling approximately 316,000 square feet of GLA and 40 acres for
an aggregate purchase price of approximately $64.4 million. During
the first nine months of 2006, the Company acquired, including
through co-investments with its joint venture partners, an
aggregate of 13 shopping centers; three buildings adjacent to
shopping centers owned by the Company or a joint venture; and two
land parcels for an aggregate of approximately $280.6 million. The
acquisitions totaled approximately 2.8 million square feet of GLA
and approximately 58 acres. Acquisitions completed during the third
quarter are summarized below: -- On September 21, 2006, the Company
acquired Shoppes at Hickory Hollow, a 144,469 square foot shopping
center located in Antioch, Tennessee (a suburb of Nashville) and
anchored by Kroger, for approximately $15.5 million, including
approximately $10.8 million of assumed mortgage indebtedness. -- On
September 22, 2006, the Company acquired The Quentin Collection, a
171,179 square foot shopping center located in Kildeer, Illinois
and anchored by Best Buy, Fresh Market, PetSmart and Stein Mart,
for approximately $38.2 million. -- On September 29, 2006, the
Company acquired a 40-acre land parcel (the Shoppes at Cinnaminson)
located in Cinnaminson, New Jersey for approximately $10.7 million.
The Company expects to develop an approximately 330,000 square foot
community shopping center on the land, which was formerly the site
of Cinnaminson Mall, a functionally obsolete enclosed mall. During
the third quarter of 2006, the Company generated an aggregate of
approximately $22.2 million of proceeds through the sale of six
shopping centers. Properties sold during the quarter include:
Friendswood Square, a 77,587 square foot shopping center located in
Friendswood, Texas; Southgate Plaza, a 59,816 square foot shopping
center located in Albany, Georgia; North Leg Plaza, a 118,580
square foot shopping center located in Augusta, Georgia; Southgate
Plaza, a 39,262 square foot shopping center located in Cordele,
Georgia; Westgate, a 16,307 square foot shopping center located in
Tifton, Georgia; and South Park, a 55,583 square foot shopping
center located in Aiken, South Carolina. During the first nine
months of 2006, the Company generated an aggregate of approximately
$51.1 million of proceeds through the culling of non-core and
non-strategic properties and the disposition of one property and
one land parcel held through joint ventures. Balance Sheet Position
On August 25, 2006, the Company amended and restated its existing
$350 million unsecured revolving credit facility (the Amended
Revolver) and added an accordion feature to the Amended Revolver
that allows the Company, subject to certain conditions, to increase
the amount that can be borrowed under the Amended Revolver to $500
million. The Amended Revolver bears interest at LIBOR plus 55 basis
points (based on the Company's current credit ratings) and incurs
an annual facility fee of 15 basis points, resulting in an
aggregate 15 basis point reduction in the effective interest rate
of the Amended Revolver. The Amended Revolver is scheduled to
mature on August 25, 2010, with a one- year extension option. On
August 25, 2006, the Company also amended and restated its existing
$150 million secured term loan (the Amended Term Loan). The Amended
Term Loan bears interest at LIBOR plus 55 basis points (based on
the Company's current credit ratings), which represents a 30 basis
point reduction in the effective interest rate of the Amended Term
Loan, and is scheduled to mature on August 25, 2010. On September
19, 2006, the Company completed an offering of $200 million
aggregate principal amount of 3.70 percent convertible senior notes
due 2026. At certain dates and upon the occurrence of certain
events, the notes are convertible into cash up to their principal
amount and, with respect to the remainder, if any, of the
conversion value in excess of such principal amount, cash or shares
of the Company's common stock. The initial conversion rate will be
30.5506 shares per $1,000 principal amount of notes (which is
equivalent to an initial conversion price of $32.73 per share). On
or after September, 20, 2011, the Company may redeem all or a
portion of the notes at a redemption price equal to the principal
amount of the notes plus any accrued interest. In addition, on
September 20, 2011, September 15, 2016, and September 15, 2021, or
upon the occurrence of certain change in control transactions prior
to September 20, 2011, note holders may require the Company to
repurchase all or a portion of the notes at a purchase price equal
to the principal amount plus any accrued and unpaid interest on the
notes. Net proceeds from the offering were used to repurchase
approximately $50 million of the Company's common stock at a price
of $26.83 per share and for general corporate purposes, including
the repayment of outstanding borrowings under the Amended Revolver.
As of September 30, 2006, the Company had total book assets of
approximately $3.5 billion and a total debt / undepreciated book
value ratio of 45.8 percent. The Company's debt for the three
months ended September 30, 2006 had an overall weighted average
current interest rate of 5.9 percent and a weighted average
maturity of 6.4 years. Approximately 87 percent of the Company's
total debt is fixed rate debt, including the impact of the
Company's interest rate swaps. 2007 Earnings Guidance Given the
current economic outlook and management's expectations with respect
to its portfolio performance and capital recycling program, the
Company anticipates 2007 EPS and FFO per share, both on a diluted
basis, to be in the range of $1.05 to $1.12 and $1.93 to $2.00,
respectively. The Company's guidance for 2007 EPS and FFO is
reconciled below: 2007 EPS - Diluted $1.05 - $1.12 Add:
Depreciation and amortization 0.88 FFO per Share - Diluted $1.93 -
$2.00 See footnote 6 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
impairments of real estate for 2007 in its guidance. Any impairment
of real estate will negatively impact both net income and FFO,
which impact may be material. Dividend For the fourth 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 January 16, 2007 to common stockholders of record on
January 5, 2007. The Company's shares go ex-dividend on January 3,
2007. 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 January 5, 2007, payable on January 16,
2007. 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 January 5, 2007, payable on January 16,
2007. Management Comment "Throughout 2006, we have focused on
improving our balance sheet; refining our infrastructure, including
best-in-class leasing, property management, construction,
redevelopment and development teams; executing strong operating
metrics; and creating value at both the portfolio and asset level.
In 2007, these same fundamentals will guide us," commented Glenn J.
Rufrano, Chief Executive Officer. Conference Call The Company will
be hosting a teleconference on Thursday, November 2, 2006 at 2:00
PM ET. The teleconference can be accessed by dialing 1-866-362-4831
(International: 1-617-597-5347) or via the web at
http://www.newplan.com/ under Investor Information; Audio Archives.
Please refer to passcode #86926600. A replay of the teleconference
will be available through midnight ET on November 9, 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 #22055650. 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. 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 175 properties held through joint ventures, and total
assets of approximately $3.5 billion. The properties are
strategically located across 39 states and include 461 community
and neighborhood shopping centers, primarily grocery or name-brand
discount chain anchored, with approximately 68.1 million square
feet of gross leasable area, and 16 related retail real estate
assets, with approximately 694,000 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 or 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; governmental
approvals, actions and initiatives; 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 Nine Months Ended September September September September 30,
2006 30, 2005 30, 2006 30, 2005 Rental Revenues: Rental income
$83,149 $88,422 $256,184 $285,609 Percentage rents 1,119 890 4,500
4,936 Expense reimbursements 28,688 22,228 77,412 75,835 TOTAL
RENTAL REVENUES 112,956 111,540 338,096 366,380 Rental Operating
Expenses: Operating costs 19,124 17,474 56,131 59,306 Real estate
taxes 16,223 15,022 44,760 49,242 Provision for doubtful accounts
1,685 4,466 6,137 9,133 TOTAL RENTAL OPERATING EXPENSES 37,032
36,962 107,028 117,681 NET OPERATING INCOME (1) 75,924 74,578
231,068 248,699 Other Income: Fee income (2) 4,036 3,228 11,485
6,153 Interest, dividend and other income 889 1,836 2,567 3,571
Equity in income of unconsolidated ventures (2) 1,103 755 3,769
1,885 TOTAL OTHER INCOME 6,028 5,819 17,821 11,609 Other Expenses:
Interest expense 23,480 39,554 69,155 95,063 Depreciation and
amortization 22,707 22,025 67,966 71,523 General and administrative
6,713 9,779 21,051 18,970 TOTAL OTHER EXPENSES 52,900 71,358
158,172 185,556 Income before real estate sales, impairment of real
estate and minority interest 29,052 9,039 90,717 74,752 Gain on
sale of real estate (3) - 186,942 - 186,942 Impairment of real
estate - (859) - (859) Minority interest in income of consolidated
partnership and joint ventures (210) (4,359) (561) (5,775) INCOME
FROM CONTINUING OPERATIONS 28,842 190,763 90,156 255,060
Discontinued Operations: Results of discontinued operations 106
2,303 2,136 5,693 Gain on sale of discontinued operations (4) (5)
4,234 2,979 14,373 14,676 Impairment of real estate held for sale -
- (305) - INCOME FROM DISCONTINUED OPERATIONS 4,340 5,282 16,204
20,369 NET INCOME $33,182 $196,045 $106,360 $275,429 Preferred
dividends (5,494) (5,475) (16,467) (16,413) NET INCOME AVAILABLE TO
COMMON STOCKHOLDERS - BASIC 27,688 190,570 89,893 259,016 Minority
interest in income of consolidated partnership 210 4,359 561 4,892
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS - DILUTED $27,898
$194,929 $90,454 $263,908 Net income per common share - basic $0.26
$1.84 $0.86 $2.51 Net income per common share - diluted 0.25 1.82
0.83 2.48 Funds from operations: (6) Net income available to common
stockholders - diluted $27,898 $194,929 $90,454 $263,908 Deduct:
Minority interest in income of consolidated partnership, excluding
gain allocation (210) (3) (561) (536) Net income available to
common stockholders - basic 27,688 194,926 89,893 263,372 Add:
Depreciation and amortization: Continuing operations real estate
assets 21,851 21,638 65,396 70,351 Discontinued operations real
estate assets 3 634 290 2,475 Pro rata share of joint venture real
estate assets 2,263 947 8,159 2,139 Deduct: Gain on sale of real
estate (7) - (186,942) - (186,942) Gain on sale of discontinued
operations (4) (7) (4,234) (451) (11,689) (8,794) Pro rata share of
joint venture gain on sale of real estate (7) - (40) (78) (40)
FUNDS FROM OPERATIONS - BASIC 47,571 30,712 151,971 142,561 Add:
Minority interest in income of consolidated partnership, excluding
gain allocation 210 3 561 536 FUNDS FROM OPERATIONS - DILUTED
$47,781 30,715 $152,532 $143,097 Funds from operations per share -
basic $0.46 $0.30 $1.46 $1.38 Funds from operations per share -
diluted 0.44 0.29 1.40 1.34 Funds from operations - diluted $47,781
$30,715 $152,532 $143,097 Add: Impairment of real estate - 859 -
859 Impairment of real estate held for sale - - 305 - FUNDS FROM
OPERATIONS - DILUTED (prior calculation) $47,781 $31,574 $152,837
$143,956 Funds from operations per share - diluted (prior
calculation) $0.44 $0.30 $1.40 $1.35 NEW PLAN EXCEL REALTY TRUST,
INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In
thousands, except per share amounts and footnotes) Three Months
Ended Nine Months Ended September September September September 30,
2006 30, 2005 30, 2006 30, 2005 Weighted average common shares
outstanding - basic 104,506 103,460 104,419 103,157 ERP partnership
units 2,907 2,369 2,918 2,258 Options and contingently issuable
shares 1,779 865 1,520 981 Convertible debt 237 89 16 162
Restricted stock 19 52 26 65 Weighted average common shares
outstanding - diluted 109,448 106,835 108,899 106,623 (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 and nine months ended September 30, 2006, the
Company's ownership interest in Fee income has been reclassified to
Equity in income of unconsolidated ventures. (3) For the three and
nine months ended September 30, 2005, represents the gain on sale
of 69 community and neighborhood shopping centers in conjunction
with the Galileo Transactions. (4) For the nine months ended
September 30, 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 had a 50
percent interest, and approximately $140,000 of final distributions
from Benbrooke Ventures. (5) For the three and nine months ended
September 30, 2005, balance includes approximately $2.295 million,
which represents the Company's gain on the sale of its ownership
interest in BPR West, L.P., a joint venture in which the Company
previously held a 50 percent interest. (6) 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
on real estate assets, 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 on real
estate assets, 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
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. (7) 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 September 30, 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.newplan.com/
Copyright
New Plan Excel (NYSE:NXL)
Historical Stock Chart
From May 2024 to Jun 2024
New Plan Excel (NYSE:NXL)
Historical Stock Chart
From Jun 2023 to Jun 2024