Maryland
|
04-2458042
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
321 Railroad
Avenue, Greenwich, CT
|
06830
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer ☐
|
Accelerated filer ☒
|
Non-accelerated filer ☐
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
|
Urstadt Biddle Properties Inc.
|
||
Part I.
Financial Information
|
||
Item 1.
|
Financial Statements (Unaudited)
|
|
1 | ||
2 | ||
3 | ||
4 | ||
5 | ||
6 | ||
Item 2.
|
17 | |
Item 3.
|
23 | |
Item 4.
|
23 | |
Part II.
Other Information
|
||
Item 1.
|
24 |
|
Item 2.
|
24 | |
Item 6.
|
25 | |
January 31, 2019
|
October 31, 2018
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Real Estate Investments:
|
||||||||
Real Estate– at cost
|
$
|
1,134,678
|
$
|
1,118,075
|
||||
Less: Accumulated depreciation
|
(224,160
|
)
|
(218,653
|
)
|
||||
910,518
|
899,422
|
|||||||
Investments in and advances to unconsolidated joint ventures
|
36,194
|
37,434
|
||||||
946,712
|
936,856
|
|||||||
Cash and cash equivalents
|
13,142
|
10,285
|
||||||
Marketable securities
|
-
|
5,567
|
||||||
Tenant receivables
|
23,787
|
22,607
|
||||||
Prepaid expenses and other assets
|
24,011
|
22,467
|
||||||
Deferred charges, net of accumulated amortization
|
10,806
|
10,451
|
||||||
Total Assets
|
$
|
1,018,458
|
$
|
1,008,233
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities:
|
||||||||
Revolving credit line
|
$
|
44,595
|
$
|
28,595
|
||||
Mortgage notes payable and other loans
|
292,129
|
293,801
|
||||||
Accounts payable and accrued expenses
|
8,632
|
3,900
|
||||||
Deferred compensation – officers
|
36
|
72
|
||||||
Other liabilities
|
21,963
|
21,466
|
||||||
Total Liabilities
|
367,355
|
347,834
|
||||||
Redeemable Noncontrolling Interests
|
78,405
|
78,258
|
||||||
Commitments and Contingencies
|
||||||||
Stockholders’ Equity:
|
||||||||
6.75% Series G Cumulative Preferred Stock (liquidation preference of $25
per share); 3,000,000 shares issued and outstanding
|
75,000
|
75,000
|
||||||
6.25% Series H Cumulative Preferred Stock (liquidation preference of $25
per share); 4,600,000 shares issued and outstanding
|
115,000
|
115,000
|
||||||
Excess Stock, par value $0.01 per share; 20,000,000 shares authorized;
none issued and outstanding
|
-
|
-
|
||||||
Common Stock, par value $0.01 per share; 30,000,000 shares authorized;
9,960,445 and 9,822,006 shares issued and outstanding
|
100
|
99
|
||||||
Class A Common Stock, par value $0.01 per share; 100,000,000 shares
authorized; 29,913,560 and 29,814,814 shares issued and outstanding
|
299
|
298
|
||||||
Additional paid in capital
|
518,985
|
518,136
|
||||||
Cumulative distributions in excess of net income
|
(138,248
|
)
|
(133,858
|
)
|
||||
Accumulated other comprehensive income
|
1,562
|
7,466
|
||||||
Total Stockholders' Equity
|
572,698
|
582,141
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
1,018,458
|
$
|
1,008,233
|
Three Months Ended
January 31,
|
||||||||
2019
|
2018
|
|||||||
Revenues
|
||||||||
Base rents
|
$
|
24,778
|
$
|
23,584
|
||||
Recoveries from tenants
|
8,452
|
8,207
|
||||||
Other
|
1,225
|
1,204
|
||||||
Total Revenues
|
34,455
|
32,995
|
||||||
Expenses
|
||||||||
Property operating
|
5,864
|
6,306
|
||||||
Property taxes
|
5,913
|
5,147
|
||||||
Depreciation and amortization
|
6,940
|
6,949
|
||||||
General and administrative
|
2,654
|
2,419
|
||||||
Provision for tenant credit losses
|
254
|
210
|
||||||
Directors' fees and expenses
|
108
|
102
|
||||||
Total Operating Expenses
|
21,733
|
21,133
|
||||||
Operating Income
|
12,722
|
11,862
|
||||||
Non-Operating Income (Expense):
|
||||||||
Interest expense
|
(3,578
|
)
|
(3,423
|
)
|
||||
Equity in net income from unconsolidated joint ventures
|
342
|
560
|
||||||
Gain on sale of marketable securities
|
403
|
-
|
||||||
Interest, dividends and other investment income
|
129
|
80
|
||||||
Net Income
|
10,018
|
9,079
|
||||||
Noncontrolling interests:
|
||||||||
Net income attributable to noncontrolling interests
|
(1,101
|
)
|
(1,095
|
)
|
||||
Net income attributable to Urstadt Biddle Properties Inc.
|
8,917
|
7,984
|
||||||
Preferred stock dividends
|
(3,063
|
)
|
(3,063
|
)
|
||||
Net Income Applicable to Common and Class A Common Stockholders
|
$
|
5,854
|
$
|
4,921
|
||||
Basic Earnings Per Share:
|
||||||||
Per Common Share:
|
$
|
0.14
|
$
|
0.12
|
||||
Per Class A Common Share:
|
$
|
0.16
|
$
|
0.13
|
||||
Diluted Earnings Per Share:
|
||||||||
Per Common Share:
|
$
|
0.14
|
$
|
0.12
|
||||
Per Class A Common Share:
|
$
|
0.16
|
$
|
0.13
|
||||
Dividends Per Share:
|
||||||||
Common
|
$
|
$ 0.245
|
$
|
$ 0.24
|
||||
Class A Common
|
$
|
$ 0.275
|
$
|
$ 0.27
|
Three Months Ended
January 31,
|
||||||||
2019
|
2018
|
|||||||
Net Income
|
$
|
10,018
|
$
|
9,079
|
||||
Other comprehensive income:
|
||||||||
Change in unrealized income on interest rate swaps
|
(4,720
|
)
|
2,410
|
|||||
Change in unrealized losses on interest rate swaps-equity investees
|
(615
|
)
|
-
|
|||||
Total comprehensive income
|
4,683
|
11,489
|
||||||
Comprehensive income attributable to noncontrolling interests
|
(1,101
|
)
|
(1,095
|
)
|
||||
Total Comprehensive income attributable to Urstadt Biddle Properties Inc.
|
3,582
|
10,394
|
||||||
Preferred stock dividends
|
(3,063
|
)
|
(3,063
|
)
|
||||
Total comprehensive income applicable to Common and Class A Common Stockholders
|
$
|
519
|
$
|
7,331
|
Three Months Ended
January 31,
|
||||||||
2019
|
2018
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net income
|
$
|
10,018
|
$
|
9,079
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
6,940
|
6,949
|
||||||
Straight-line rent adjustment
|
(436
|
)
|
(217
|
)
|
||||
Provision for tenant credit losses
|
254
|
210
|
||||||
(Gain) on sale of marketable securities
|
(403
|
)
|
-
|
|||||
Restricted stock compensation expense and other adjustments
|
1,066
|
666
|
||||||
Deferred compensation arrangement
|
(36
|
)
|
(33
|
)
|
||||
Equity in net (income) of unconsolidated joint ventures
|
(342
|
)
|
(560
|
)
|
||||
Distributions of operating income from unconsolidated joint ventures
|
342
|
560
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Tenant receivables
|
(998
|
)
|
(1,012
|
)
|
||||
Accounts payable and accrued expenses
|
2,979
|
2,819
|
||||||
Other assets and other liabilities, net
|
(5,712
|
)
|
(5,882
|
)
|
||||
Net Cash Flow Provided by Operating Activities
|
13,672
|
12,579
|
||||||
Cash Flows from Investing Activities:
|
||||||||
Acquisitions of real estate investments
|
(13,836
|
)
|
(121
|
)
|
||||
Investments in and advances to unconsolidated joint ventures
|
(369
|
)
|
-
|
|||||
Deposits on acquisition of real estate investment
|
-
|
(10
|
)
|
|||||
Proceeds from the sale of available for sale securities
|
5,970
|
-
|
||||||
Improvements to properties and deferred charges
|
(2,915
|
)
|
(2,389
|
)
|
||||
Distributions to noncontrolling interests
|
(1,101
|
)
|
(1,095
|
)
|
||||
Return of capital from unconsolidated joint ventures
|
989
|
136
|
||||||
Net Cash Flow (Used in) Investing Activities
|
(11,262
|
)
|
(3,479
|
)
|
||||
Cash Flows from Financing Activities:
|
||||||||
Dividends paid -- Common and Class A Common Stock
|
(10,666
|
)
|
(10,408
|
)
|
||||
Dividends paid -- Preferred Stock
|
(3,063
|
)
|
(3,063
|
)
|
||||
Principal repayments on mortgage notes payable
|
(1,609
|
)
|
(1,604
|
)
|
||||
Repayment of revolving credit line borrowings
|
(3,000
|
)
|
(4,000
|
)
|
||||
Proceeds from revolving credit line borrowings
|
19,000
|
6,000
|
||||||
Payment of taxes on shares withheld for employee taxes
|
(265
|
)
|
(240
|
)
|
||||
Net proceeds from the issuance of Common and Class A Common Stock
|
50
|
49
|
||||||
Net Cash Flow Provided by/(Used in) Financing
Activities
|
447
|
(13,266
|
)
|
|||||
Net Increase/(Decrease) In Cash and Cash Equivalents
|
2,857
|
(4,166
|
)
|
|||||
Cash and Cash Equivalents at Beginning of Period
|
10,285
|
8,674
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
13,142
|
$
|
4,508
|
||||
Supplemental Cash Flow Disclosures:
|
||||||||
Interest Paid
|
$
|
3,572
|
$
|
3,252
|
6.75%
Series G
Preferred
Stock
Issued
|
6.75%
Series G
Preferred
Stock A
Amount
|
6.25%
Series H
Preferred
Stock
Issued
|
6.25%
Series H
Preferred
Stock
Amount
|
Common
Stock
Issued
|
Common
Stock
Amount
|
Class A
Common
Stock
Issued
|
Class A
Common
Stock
Amount
|
Additional
Paid In
Capital
|
Cumulative
Distributions
In Excess of
Net Income
|
Accumulated
Other
Comprehensive
Income
|
Total
Stockholders’
Equity
|
|||||||||||||||||||||||||||||||||||||
Balances - October 31, 2018
|
3,000,000
|
$
|
75,000
|
4,600,000
|
$
|
115,000
|
9,822,006
|
$
|
99
|
29,814,814
|
$
|
298
|
$
|
518,136
|
$
|
(133,858
|
)
|
$
|
7,466
|
$
|
582,141
|
|||||||||||||||||||||||||||
November 1, 2018 adoption of new accounting standard - See Note 1
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
569
|
(569
|
)
|
-
|
|||||||||||||||||||||||||||||||||||
Net income applicable to Common and Class A common stockholders
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
5,854
|
-
|
5,854
|
||||||||||||||||||||||||||||||||||||
Change in unrealized income on interest rate swaps
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(5,335
|
)
|
(5,335
|
)
|
||||||||||||||||||||||||||||||||||
Cash dividends paid :
|
||||||||||||||||||||||||||||||||||||||||||||||||
Common stock ($0.245 per share)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,440
|
)
|
-
|
(2,440
|
)
|
||||||||||||||||||||||||||||||||||
Class A common stock ($0.275 per share)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(8,226
|
)
|
-
|
(8,226
|
)
|
||||||||||||||||||||||||||||||||||
Issuance of shares under dividend reinvestment plan
|
-
|
-
|
-
|
-
|
1,239
|
-
|
1,482
|
-
|
50
|
-
|
-
|
50
|
||||||||||||||||||||||||||||||||||||
Shares issued under restricted stock plan
|
-
|
-
|
-
|
-
|
137,200
|
1
|
111,450
|
1
|
(2
|
)
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes
|
-
|
-
|
-
|
-
|
-
|
-
|
(14,086
|
)
|
-
|
(265
|
)
|
-
|
-
|
(265
|
)
|
|||||||||||||||||||||||||||||||||
Forfeiture of restricted stock
|
-
|
-
|
-
|
-
|
-
|
-
|
(100
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||||
Restricted stock compensation and other adjustments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,066
|
-
|
-
|
1,066
|
||||||||||||||||||||||||||||||||||||
Adjustments to redeemable noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(147
|
)
|
-
|
(147
|
)
|
||||||||||||||||||||||||||||||||||
Balances - January 31, 2019
|
3,000,000
|
$
|
75,000
|
4,600,000
|
$
|
115,000
|
9,960,445
|
$
|
100
|
29,913,560
|
$
|
299
|
$
|
518,985
|
$
|
(138,248
|
)
|
$
|
1,562
|
$
|
572,698
|
6.75%
Series G
Preferred
Stock
Issued
|
6.75%
Series G
Preferred
Stock A
Amount
|
6.25%
Series H
Preferred
Stock
Issued
|
6.25%
Series H
Preferred
Stock
Amount
|
Common
Stock
Issued
|
Common
Stock
Amount
|
Class A
Common
Stock
Issued
|
Class A
Common
Stock
Amount
|
Additional
Paid In
Capital
|
Cumulative
Distributions
In Excess of
Net Income
|
Accumulated
Other
Comprehensive
Income
|
Total
Stockholders’
Equity
|
|||||||||||||||||||||||||||||||||||||
Balances - October 31, 2017
|
3,000,000
|
$
|
75,000
|
4,600,000
|
$
|
115,000
|
9,664,778
|
$
|
97
|
29,728,744
|
$
|
297
|
$
|
514,217
|
$
|
(120,123
|
)
|
$
|
2,742
|
$
|
587,230
|
|||||||||||||||||||||||||||
Net income applicable to Common and Class A common stockholders
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4,921
|
-
|
4,921
|
||||||||||||||||||||||||||||||||||||
Change in unrealized income on interest rate swaps
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,410
|
2,410
|
||||||||||||||||||||||||||||||||||||
Cash dividends paid :
|
||||||||||||||||||||||||||||||||||||||||||||||||
Common stock ($0.24 per share)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,356
|
)
|
-
|
(2,356
|
)
|
||||||||||||||||||||||||||||||||||
Class A common stock ($0.27 per share)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(8,052
|
)
|
-
|
(8,052
|
)
|
||||||||||||||||||||||||||||||||||
Issuance of shares under dividend reinvestment plan
|
-
|
-
|
-
|
-
|
1,120
|
-
|
1,469
|
-
|
49
|
-
|
-
|
49
|
||||||||||||||||||||||||||||||||||||
Shares issued under restricted stock plan
|
-
|
-
|
-
|
-
|
152,700
|
2
|
102,800
|
1
|
(3
|
)
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes
|
-
|
-
|
-
|
-
|
-
|
-
|
(10,886
|
)
|
-
|
(240
|
)
|
-
|
-
|
(240
|
)
|
|||||||||||||||||||||||||||||||||
Forfeiture of restricted stock
|
-
|
-
|
-
|
-
|
-
|
-
|
(3,250
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||||
Restricted stock compensation and other adjustments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
667
|
-
|
-
|
667
|
||||||||||||||||||||||||||||||||||||
Adjustments to redeemable noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,362
|
-
|
1,362
|
||||||||||||||||||||||||||||||||||||
Balances - January 31, 2018
|
3,000,000
|
$
|
75,000
|
4,600,000
|
$
|
115,000
|
9,818,598
|
$
|
99
|
29,818,877
|
$
|
298
|
$
|
514,690
|
$
|
(124,248
|
)
|
$
|
5,152
|
$
|
585,991
|
Fair Market
Value
|
Cost Basis
|
Unrealized
Gain/(Loss)
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Loss)
|
||||||||||||||||
October 31, 2018
|
||||||||||||||||||||
REIT Securities
|
$
|
5,567
|
$
|
4,998
|
$
|
569
|
$
|
569
|
$
|
-
|
Buildings
|
30-40 years
|
Property Improvements
|
10-20 years
|
Furniture/Fixtures
|
3-10 years
|
Tenant Improvements
|
Shorter of lease term or their useful life
|
Three Months Ended
January 31,
|
||||||||
2019
|
2018
|
|||||||
Numerator
|
||||||||
Net income applicable to common stockholders – basic
|
$
|
1,233
|
$
|
1,012
|
||||
Effect of dilutive securities:
|
||||||||
Restricted stock awards
|
38
|
43
|
||||||
Net income applicable to common stockholders – diluted
|
$
|
1,271
|
$
|
1,055
|
||||
Denominator
|
||||||||
Denominator for basic EPS – weighted average common shares
|
8,810
|
8,558
|
||||||
Effect of dilutive securities:
|
||||||||
Restricted stock awards
|
389
|
500
|
||||||
Denominator for diluted EPS – weighted average common equivalent shares
|
9,199
|
9,058
|
||||||
Numerator
|
||||||||
Net income applicable to Class A common stockholders-basic
|
$
|
4,621
|
$
|
3,909
|
||||
Effect of dilutive securities:
|
||||||||
Restricted stock awards
|
(38
|
)
|
(43
|
)
|
||||
Net income applicable to Class A common stockholders – diluted
|
$
|
4,583
|
$
|
3,866
|
||||
Denominator
|
||||||||
Denominator for basic EPS – weighted average Class A common shares
|
29,427
|
29,372
|
||||||
Effect of dilutive securities:
|
||||||||
Restricted stock awards
|
120
|
120
|
||||||
Denominator for diluted EPS – weighted average Class A common equivalent
shares
|
29,547
|
29,492
|
Three Months Ended
January 31,
|
||||||||
2019
|
2018
|
|||||||
Ridgeway Revenues
|
10.9
|
%
|
10.5
|
%
|
||||
All Other Property Revenues
|
89.1
|
%
|
89.5
|
%
|
||||
Consolidated Revenue
|
100.0
|
%
|
100.0
|
%
|
January 31,
2019
|
October 31,
2018
|
|||||||
Ridgeway Assets
|
6.7
|
%
|
7.0
|
%
|
||||
All Other Property Assets
|
93.3
|
%
|
93.0
|
%
|
||||
Consolidated Assets (Note 1)
|
100.0
|
%
|
100.0
|
%
|
January 31,
2019
|
October 31,
2018
|
|||||||
Ridgeway Percent Leased
|
96
|
%
|
96
|
%
|
Ridgeway Significant Tenants by Annual Base Rents
|
Three Months Ended
January 31,
|
|||||||
2019
|
2018
|
|||||||
The Stop & Shop Supermarket Company
|
20
|
%
|
20
|
%
|
||||
Bed, Bath & Beyond
|
14
|
%
|
14
|
%
|
||||
Marshall’s Inc., a division of the TJX Companies
|
10
|
%
|
10
|
%
|
||||
All Other Tenants at Ridgeway (Note 2)
|
56
|
%
|
56
|
%
|
||||
Total
|
100
|
%
|
100
|
%
|
Income Statement (In Thousands):
|
Three Months Ended
January 31, 2019
|
|||||||||||
Ridgeway
|
All Other
Operating Segments
|
Total Consolidated
|
||||||||||
Revenues
|
$
|
3,764
|
$
|
30,691
|
$
|
34,455
|
||||||
Operating Expenses
|
$
|
1,075
|
$
|
10,702
|
$
|
11,777
|
||||||
Interest Expense
|
$
|
437
|
$
|
3,141
|
$
|
3,578
|
||||||
Depreciation and Amortization
|
$
|
601
|
$
|
6,339
|
$
|
6,940
|
||||||
Net Income
|
$
|
1,651
|
$
|
8,367
|
$
|
10,018
|
Income Statement (In Thousands):
|
Three Months Ended
January 31, 2018
|
|||||||||||
Ridgeway
|
All Other
Operating Segments
|
Total Consolidated
|
||||||||||
Revenues
|
$
|
3,453
|
$
|
29,542
|
$
|
32,995
|
||||||
Operating Expenses
|
$
|
976
|
$
|
10,477
|
$
|
11,453
|
||||||
Interest Expense
|
$
|
577
|
$
|
2,846
|
$
|
3,423
|
||||||
Depreciation and Amortization
|
$
|
681
|
$
|
6,268
|
$
|
6,949
|
||||||
Net Income
|
$
|
1,219
|
$
|
7,860
|
$
|
9,079
|
Lakeview
|
||||
Assets:
|
||||
Land
|
$
|
2,025
|
||
Building and improvements
|
$
|
10,620
|
||
In-place leases
|
$
|
772
|
||
Above market leases
|
$
|
459
|
||
Liabilities:
|
||||
In-place leases
|
$
|
-
|
||
Below Market Leases
|
$
|
1,123
|
January 31, 2019
|
October 31, 2018
|
|||||||
Beginning Balance
|
$
|
78,258
|
$
|
81,361
|
||||
Change in Redemption Value
|
147
|
(2,674
|
)
|
|||||
Redemption of UB High Ridge Noncontrolling Interest
|
-
|
(1,220
|
)
|
|||||
Initial New City Noncontrolling Interest
|
-
|
791
|
||||||
Ending Balance
|
$
|
78,405
|
$
|
78,258
|
January 31, 2019
|
October 31, 2018
|
|||||||
Chestnut Ridge and Plaza 59 Shopping Centers (50%)
|
$
|
17,320
|
$
|
17,702
|
||||
Gateway Plaza (50%)
|
6,902
|
6,680
|
||||||
Putnam Plaza Shopping Center (66.67%)
|
4,771
|
5,978
|
||||||
Midway Shopping Center, L.P. (11.642%)
|
4,550
|
4,509
|
||||||
Applebee's at Riverhead (50%)
|
1,928
|
1,842
|
||||||
81 Pondfield Road Company (20%)
|
723
|
723
|
||||||
Total
|
$
|
36,194
|
$
|
37,434
|
Common Shares
|
Class A Common Shares
|
|||||||||||||||
Non-vested Shares
|
Shares
|
Weighted-Average
Grant-Date
Fair Value
|
Shares
|
Weighted-Average
Grant-Date
Fair Value
|
||||||||||||
Non-vested at October 31, 2018
|
1,255,900
|
$
|
17.22
|
452,925
|
$
|
21.13
|
||||||||||
Granted
|
137,200
|
$
|
15.33
|
111,450
|
$
|
18.84
|
||||||||||
Vested
|
(247,000
|
)
|
$
|
14.78
|
(70,800
|
)
|
$
|
17.92
|
||||||||
Forfeited
|
-
|
$
|
-
|
(100
|
)
|
$
|
22.10
|
|||||||||
Non-vested at January 31, 2019
|
1,146,100
|
$
|
17.52
|
493,475
|
$
|
21.07
|
• |
Level 1- Quoted prices for identical instruments in active markets
|
• |
Level 2- Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and
model-derived valuations in which significant value drivers are observable
|
• |
Level 3- Valuations derived from valuation techniques in which significant value drivers are unobservable
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
Total
|
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3)
|
|||||||||||||
January 31, 2019
|
||||||||||||||||
Assets:
|
||||||||||||||||
Interest Rate Swap Agreement
|
$
|
4,043
|
$
|
-
|
$
|
4,043
|
$
|
-
|
||||||||
Liabilities:
|
||||||||||||||||
Interest Rate Swap Agreement
|
$
|
1,867
|
$
|
-
|
$
|
1,867
|
$
|
-
|
||||||||
Redeemable noncontrolling interests
|
$
|
78,405
|
$
|
22,513
|
$
|
53,359
|
$
|
2,533
|
||||||||
October 31, 2018
|
||||||||||||||||
Assets:
|
||||||||||||||||
Interest Rate Swap Agreement
|
$
|
7,011
|
$
|
-
|
$
|
7,011
|
$
|
-
|
||||||||
Available for Sale Securities
|
$
|
5,567
|
$
|
5,567
|
$
|
-
|
$
|
-
|
||||||||
Liabilities:
|
||||||||||||||||
Interest Rate Swap Agreement
|
$
|
114
|
$
|
-
|
$
|
114
|
$
|
-
|
||||||||
Redeemable noncontrolling interests
|
$
|
78,258
|
$
|
22,131
|
$
|
53,359
|
$
|
2,768
|
•
|
economic and other market conditions, including local real estate and market conditions, that could impact
us, our properties or the financial stability of our tenants;
|
•
|
financing risks, such as the inability to obtain debt or equity financing on favorable terms, as well as the
level and volatility of interest rates;
|
•
|
any difficulties in renewing leases, filling vacancies or negotiating improved lease terms;
|
•
|
the inability of the Company’s properties to generate revenue increases to offset expense increases;
|
•
|
environmental risk and regulatory requirements;
|
•
|
risks of real estate acquisitions and dispositions (including the failure of transactions to close);
|
•
|
risks of operating properties through joint ventures that we do not fully control;
|
•
|
risks related to our status as a real estate investment trust, including the application of complex federal
income tax regulations that are subject to change;
|
•
|
as well as other risks identified in our Annual Report on Form 10-K for the fiscal year ended October 31,
2018 under Item 1A. Risk Factors and in the other reports filed by the Company with the Securities and Exchange Commission (the “SEC”).
|
•
|
acquire quality neighborhood and community shopping centers in the northeastern part of the United States with
a concentration on properties in the metropolitan New York tri-state area outside of the City of New York, and unlock further value in these properties with selective enhancements to both the property and tenant mix, as well as
improvements to management and leasing fundamentals. Our hope is to grow our assets through acquisitions by 5% to 10% per year on a dollar value basis subject to the availability of acquisitions that meet our investment parameters;
|
•
|
selectively dispose of underperforming properties and re-deploy the proceeds into potentially higher
performing properties that meet our acquisition criteria;
|
•
|
invest in our properties for the long-term through regular maintenance, periodic renovations and capital
improvements, enhancing their attractiveness to tenants and customers, as well as increasing their value;
|
•
|
leverage opportunities to increase GLA at existing properties, through development of pad sites and
reconfiguring of existing square footage, to meet the needs of existing or new tenants;
|
•
|
proactively manage our leasing strategy by aggressively marketing available GLA, renewing existing leases with
strong tenants, and replacing weak ones when necessary, with an eye towards securing leases that include regular or fixed contractual increases to minimum rents, replacing below-market-rent leases with increased market rents when possible
and further improving the quality of our tenant mix at our shopping centers;
|
•
|
maintain strong working relationships with our tenants, particularly our anchor tenants;
|
•
|
maintain a conservative capital structure with low debt levels; and
|
•
|
control property operating and administrative costs.
|
•
|
In December 2018, we purchased the Lakeview Plaza Shopping Center (“Lakeview”) for $12 million, exclusive of
closing costs. Lakeview is a 177,000 square foot grocery-anchored shopping center located in Brewster, NY. When we purchased the property we anticipated having to invest an additional $6 to $8 million for capital improvements and for
re-tenanting at the property. We purchased the property with available cash and a borrowing on our Unsecured Revolving Credit Facility (“Facility”). As of the date of this report we have expended approximately $3.2 million of the $6 to
$8 million anticipated additional investment. The property and the additional investment was funded with available cash and borrowings on our Facility.
|
•
|
In October 2018, we entered into a commitment to refinance our existing $15 million mortgage secured by our
Darien, CT shopping center on March 18, 2019, the first day the Darien mortgage can be repaid without penalty. The new mortgage will be in the amount of $25 million, have a term of ten years and will require payments of principal and
interest at the rate of LIBOR plus 1.65%. Concurrent with the commitment, we also entered into an interest rate swap with the new lender, which will convert the variable interest rate (based on LIBOR) to a fixed rate of 4.815% per
annum. The fixed interest rate on the existing mortgage is currently 6.55%.
|
•
|
In October 2018, we entered into a commitment to refinance our existing $9.1 million mortgage secured by our
Newark, NJ shopping center. We plan on completing the refinancing in March 2019, the first month the current mortgage can be repaid without penalty. The new mortgage is for $10 million and has a term of ten years and requires payments
of principal and interest at the fixed rate of 4.63%, which is a reduction from the fixed interest rate of 6.15% on the previous mortgage.
|
•
|
In the first quarter of fiscal 2019, we entered into a contract to sell our Plaza 59 property located in
Spring Valley, NY for $10 million. Plaza 59 is a property that we own a 50% undivided tenancy-in-common interest in, and account for under the equity method of accounting. As of January 31, 2019, that property was considered to be held
for sale as defined by Generally Accepted Accounting Principles (“GAAP”) and the properties net book value was reduced to the sale price less costs to sell. This reduction resulted in the amount of equity in net income we record on this
unconsolidated joint venture being reduced by $363,000 in the three months ended January 31, 2019. This loss has been added back to our Funds from Operations (“FFO”) as discussed below in this Item 2.
|
Three Months Ended
|
||||||||||||||||||||||||
January 31,
|
Change Attributable to
|
|||||||||||||||||||||||
Revenues
|
2019
|
2018
|
Increase (Decrease)
|
% Change
|
Property Acquisitions/Sales
|
Properties Held In Both Periods (Note 1)
|
||||||||||||||||||
Base rents
|
$
|
24,778
|
$
|
23,584
|
$
|
1,194
|
5.1
|
%
|
$
|
831
|
$
|
363
|
||||||||||||
Recoveries from tenants
|
8,452
|
8,207
|
245
|
3.0
|
%
|
396
|
(151
|
)
|
||||||||||||||||
Other income
|
1,208
|
1,204
|
4
|
0.3
|
%
|
37
|
(33
|
)
|
||||||||||||||||
Operating Expenses
|
||||||||||||||||||||||||
Property operating
|
5,864
|
6,306
|
(442
|
)
|
(7.0
|
)%
|
342
|
(784
|
)
|
|||||||||||||||
Property taxes
|
5,913
|
5,147
|
766
|
14.9
|
%
|
197
|
569
|
|||||||||||||||||
Depreciation and amortization
|
6,940
|
6,949
|
(9
|
)
|
(0.1
|
)%
|
139
|
(148
|
)
|
|||||||||||||||
General and administrative
|
2,654
|
2,419
|
235
|
9.7
|
%
|
n/a
|
n/a
|
|||||||||||||||||
Non-Operating Income/Expense
|
||||||||||||||||||||||||
Interest expense
|
3,578
|
3,423
|
155
|
4.5
|
%
|
40
|
115
|
|||||||||||||||||
Interest, dividends, and other investment income
|
129
|
80
|
49
|
61.3
|
%
|
n/a
|
n/a
|
•
|
does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally
reflects all cash effects of transactions and other events in the determination of net income); and
|
•
|
should not be considered an alternative to net income as an indication of our performance.
|
Reconciliation of Net Income Available to Common and Class A Common Stockholders To Funds From
Operations:
|
Three Months Ended
|
|||||||
January 31,
|
||||||||
2019
|
2018
|
|||||||
Net Income Applicable to Common and Class A Common Stockholders
|
$
|
5,854
|
$
|
4,921
|
||||
Real property depreciation
|
5,664
|
5,458
|
||||||
Amortization of tenant improvements and allowances
|
883
|
1,042
|
||||||
Amortization of deferred leasing costs
|
393
|
426
|
||||||
Depreciation and amortization on unconsolidated joint ventures
|
380
|
403
|
||||||
Loss on sale of property in unconsolidated joint venture
|
363
|
-
|
||||||
Funds from Operations Applicable to Common and Class A Common Stockholders
|
$
|
13,537
|
$
|
12,250
|
||||
•
|
a 66.67% equity interest in the Putnam Plaza Shopping Center,
|
•
|
an 11.642% equity interest in the Midway Shopping Center L.P.,
|
•
|
a 50% equity interest in the Chestnut Ridge Shopping Center and Plaza 59 Shopping Centers,
|
•
|
a 50% equity interest in the Gateway Plaza shopping center and the Riverhead Applebee’s Plaza, and
|
•
|
a 20% interest in a suburban office building with ground level retail.
|
|
Principal Balance
|
|||||||||||||
Joint Venture Description
|
Location
|
Original Balance
|
At January 31, 2019
|
Fixed Interest Rate Per Annum
|
Maturity Date
|
|||||||||
Midway Shopping Center
|
Scarsdale, NY
|
$
|
32,000
|
$
|
27,318
|
4.80
|
%
|
Dec-2027
|
||||||
Putnam Plaza Shopping Center
|
Carmel, NY
|
$
|
18,900
|
$
|
18,853
|
4.81
|
%
|
Oct-2028
|
||||||
Gateway Plaza
|
Riverhead, NY
|
$
|
14,000
|
$
|
12,276
|
4.18
|
%
|
Feb-2024
|
||||||
Applebee's Plaza
|
Riverhead, NY
|
$
|
2,300
|
$
|
1,934
|
3.38
|
%
|
Aug-2026
|
URSTADT BIDDLE PROPERTIES INC.
|
|
(Registrant)
|
|
By: /s/ Willing L. Biddle
|
|
Willing L. Biddle
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
By: /s/ John T. Hayes
|
|
John T. Hayes
|
|
Senior Vice President &
|
|
Chief Financial Officer
|
|
(Principal Financial Officer
|
|
Dated: March 8, 2019
|
and Principal Accounting Officer
|