Financial Highlights
(dollars in 000's, except per share data)
Three Months Ended Twelve Months Ended
December 31, Percent December 31, Percent
1999 1998 Change 1999 1998 Change
Revenue $39,507 $36,702 7.6% $154,833 $131,037 18.2%
EBITDA $26,421 $24,184 9.2% $101,059 $83,812 20.6%
Funds from
Operations $15,239 $14,016 8.7% $58,737 $52,316 12.3%
FFO per share -
Basic $0.60 $0.55 9.1% $2.31 $2.09 10.5%
FFO per share -
Diluted $0.59 $0.55 7.3% $2.28 $2.08 9.6%
Income before
gain, minority
interest and
preferred share
distributions $12,349 $9,442 30.8% $45,099 $33,157 36.0%
Net income to
common share
owners $8,395 $7,191 16.7% $31,502 $56,598 (44.3%)
Net income to
common share
owners per
share - Basic $0.35 $0.30 16.7% $1.31 $2.39 (45.2%)
Net income to
common share
owners per
share - Diluted $0.35 $0.30 16.7% $1.31 $2.37 (44.7%)
NORTHBROOK, Ill., Feb. 8 /PRNewswire/ -- Bradley Real Estate, Inc.
(NYSE: BTR) today reported funds from operations for the quarter of
$15.2 million, or $0.59 per share, compared to $14.0 million, or $0.55 per
share, for the prior-year quarter, a per share increase of 7.3 percent. Funds
from operations for the year increased to $58.7 million, or $2.28 per share,
compared to $52.3 million, or $2.08 per share, in the prior year, a per share
increase of 9.6 percent. All per-share amounts are reported on a diluted
basis.
Commenting on the quarter and year-end results, Thomas P. D'Arcy, chairman
and chief executive officer, stated, "The company had a strong quarter and a
very productive year. 1999 marked the fourth consecutive year in which we
have grown our FFO per share by 9.5 percent or greater. In addition, while we
recognize that Bradley, as well as the overall REIT sector, performed poorly
from a total return perspective in 1999, for the four-year period ended
December 1999, Bradley provided its share owners the highest annualized total
return of all retail REITs in the mall, strip and outlet sectors."
For the quarter, net income attributable to common share owners totaled
$8.4 million, or $0.35 per share, compared to $7.2 million, or $0.30 per
share, for the prior-year quarter. Net income attributable to common share
owners for 1999 totaled $31.5 million, or $1.31 per share, compared to
$56.6 million, or $2.37 per share, for the prior year. Net income for 1998
included a net gain of $29.7 million on the sale of real estate investments.
The company's financial position remained strong with total assets of
$996 million and a ratio of debt-to-total market capitalization of
43.9 percent. The company's debt-service coverage ratio remained healthy at
3.3 times while its fixed charge coverage ratio was 2.3 times. At
December 31, 1999, the company had $105.5 million available under its
$250 million unsecured line of credit. Also, the company was holding for sale
certain non-core real estate assets with a book value of approximately
$30 million that are projected to close during the first quarter of 2000.
Portfolio Occupancy and Leasing Activity
Portfolio occupancy at year-end, excluding properties under redevelopment,
was 94 percent compared to 93 percent a year ago. Leasing activity continued
to show strength with 31 new leases signed during the quarter, totaling
117,000 square feet at an average base rent for comparable space of $8.32 per
square foot, a 10 percent increase over the prior average base rent. In
addition, during the quarter the company renewed 78 leases totaling 266,000
square feet, at an average base rent of $10.25 per square foot, a 5 percent
increase over the prior average base rent.
For the year, the company signed 146 new leases, totaling 686,000 square
feet, at an average base rent for comparable space of $10.33 per square foot,
a 10 percent increase over the prior average base rent. In addition for the
year the company renewed 292 leases, totaling 1.2 million square feet, at an
average base rent of $9.58 per square foot, a 6 percent increase over the
prior average base rent.
Redevelopment & Development
During 1999, the company commenced the redevelopment of four shopping
centers representing an aggregate cost upon completion of approximately
$51 million. These projects involve new tenancies, relocations and
common-area upgrades. The projects are proceeding as planned and are expected
to be completed in 2000. In addition, the company continues to pursue
additional redevelopment and development opportunities in its Midwest markets.
Dick Heuer, executive vice president of development, commented, "We continue
working with our Midwest grocery clients in order to meet their expansion
needs. In 2000, we anticipate commencing several new projects which we expect
will generate solid returns upon stabilization and we continue to add to our
growing pipeline of potential projects."
Share Repurchase Program
On November 23, 1999, the Board of Directors authorized the repurchase of
up to 2 million shares of the company's outstanding common shares. The
program is in effect until December 31, 2000, or until the authorized limit
has been reached. To date, the company has repurchased approximately
1.4 million shares at an average price of $16.95 per share.
Outlook for 2000
Commenting on the company's outlook for 2000, Mr. D'Arcy continued,
"During 2000, we will continue to focus on enhancing our areas of strategic
advantage. We believe that our Midwest geographic focus provides the company
with operating synergies and cost efficiencies and that our concentration in
grocery-anchored necessity-based retail provides our investors superior
risk-adjusted returns. During the year we will selectively commit capital to
development and redevelopment activities with high-value-added potential and
continue to implement our share repurchase program. As always, we remain
committed to maintaining our strong, conservative financial position and, in
this regard, we expect to fund our activity with a combination of retained
cash, asset dispositions and potential strategic partnerships."
Bradley Real Estate is the nation's oldest real estate investment trust
and a leading owner and operator of neighborhood and community shopping
centers located in the Midwest region of the United States. The company owns
98 shopping centers located in 15 states aggregating 15.6 million square feet
of rentable space. The company has paid 154 consecutive quarterly dividends
to its share owners.
The preceding information contains forward-looking statements of the
company's plans, objectives and expectations, which are dependent upon a
number of factors including a stable retailing climate in the Midwestern
United States, the financial viability of the company's tenants, the
continuing availability of retail center acquisitions and development
opportunities in the Midwest on favorable terms, the company's ability to
effectively add value through redevelopment and the trading value of the
company's equity. Reference is made to the discussions under the captions
"Risk Factors" in the company's 1998 Form 10-K report which includes a
discussion of certain other factors that could cause actual results to differ
materially from those in forward-looking statements.
In addition to the regular quarterly earnings releases and quarterly
reports, the company also makes available on a quarterly basis supplemental
information which includes property- and corporate-level detail. This
information, as well as additional company information, is available upon
request from the company or from the company's website at
http://www.bradleyrealestate.com .
To receive additional information on Bradley Real Estate free of charge
via fax, dial 1-800-PRO-INFO and enter "BTR."
BRADLEY REAL ESTATE, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
(UNAUDITED)
December 31,
ASSETS 1999 1998 % Change
Real estate investments-at cost $1,014,158 $936,465 8.3%
Accumulated depreciation and
amortization (81,302) (59,196) 37.3%
Net real estate investments 932,856 877,269 6.3%
Real estate investments held for sale 29,890 46,492 -35.7%
Other assets:
Cash and cash equivalents 4,434 1,262 251.3%
Rents and other receivables, net of
allowance for doubtful accounts of
$4,545 for 1999 and $4,078 for 1998 12,273 12,165 0.9%
Investment in partnership -- 13,249 -100.0%
Deferred charges, net and other assets 16,714 16,676 0.2%
Total assets $996,167 $967,113 3.0%
LIABILITIES AND SHARE OWNERS' EQUITY
Mortgage loans $100,718 $103,333 -2.5%
Unsecured notes payable 199,604 199,542 0.0%
Line of credit 144,500 169,500 -14.7%
Accounts payable, accrued expenses
and other liabilities 32,787 27,848 17.7%
Total liabilities 477,609 500,223 -4.5%
Exchangeable limited partnership units 19,306 21,573 -10.5%
Series B preferred units 49,100 -- 100.0%
Series C preferred units 24,344 -- 100.0%
Total minority interest 92,750 21,573 329.9%
Share Owners' equity:
Shares of preferred stock and paid-in
capital, par value $.01 per share;
liquidation preference $25.00 per share:
Authorized 20,000,000 shares;
3,478,219 and 3,478,493 shares of
Series A Convertible Preferred Stock
issued and outstanding at
December 31, 1999 and 1998,
respectively 86,802 86,809 0.0%
Shares of common stock and paid-in
capital, par value $.01 per share:
Authorized 80,000,000 shares; issued
and outstanding 24,003,077 and
23,958,662 shares at December 31,
1999 and 1998, respectively 333,907 349,254 -4.4%
Shares of excess stock, par value
$.01 per share:
Authorized 50,000,000 shares;
0 shares issued and outstanding -- -- --
Retained earnings 5,099 9,254 -44.9%
Total share owners' equity 425,808 445,317 -4.4%
Total liabilities and share owners'
equity $996,167 $967,113 3.0%
BRADLEY REAL ESTATE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(UNAUDITED)
Three months ended Twelve months ended
December 31, December 31,
1999 1998 % Change 1999 1998 % Change
Income:
Rental income $38,535 $35,802 7.6% $151,950 $128,444 18.3%
Other income 972 900 8.0% 2,883 2,593 11.2%
39,507 36,702 7.6% 154,833 131,037 18.2%
Expenses:
Operations,
maintenance
and management 5,173 5,629 -8.1% 22,971 18,915 21.4%
Real estate
taxes 5,621 5,272 6.6% 22,859 21,713 5.3%
Mortgage and
other interest 7,406 8,114 -8.7% 29,404 27,681 6.2%
General and
administrative 2,292 1,956 17.2% 8,544 7,183 18.9%
Depreciation and
amortization 6,666 6,628 0.6% 26,456 22,974 15.2%
27,158 27,599 -1.6% 110,234 98,466 12.0%
Income before
equity in earnings
of partnership and
net gain on sale
of properties 12,349 9,103 35.7% 44,599 32,571 36.9%
Equity in earnings
of partnership -- 339 -100.0% 500 586 -14.7%
Net gain on sale
of properties -- -- -- -- 29,680 -100.0%
Income before
allocation to
minority
interest 12,349 9,442 30.8% 45,099 62,837 -28.2%
Income allocated
to exchangeable
limited
partnership units (463) (425) 8.9% (1,806) (3,317) -45.6%
Income allocated
to Series B and C
preferred units (1,665) -- -100.0% (4,487) -- -100.0%
Net income 10,221 9,017 13.4% 38,806 59,520 -34.8%
Preferred share
distributions (1,826) (1,826) 0.0% (7,304) (2,922) 150.0%
Net income
attributable to
common share
owners $8,395 $7,191 16.7% $31,502 56,598 -44.3%
Basic net income
per share $0.35 $0.30 16.7% $1.31 $2.39 -45.2%
Diluted net income
per share $0.35 $0.30 16.7% $1.31 $2.37 -44.7%
CALCULATION OF FUNDS FROM OPERATIONS
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 % Change 1999 1998 % Change
Income before
allocation to
minority
interest $12,349 $9,442 30.8% $45,099 $62,837 -28.2%
-Preferred
share
distributions (1,826) (1,826) 0.0% (7,304) (2,922) 150.0%
-Income
allocated to
Series B and
C preferred
units (1,665) -- -100.0% (4,487) -- -100.0%
+Depreciation
of real estate
assets &
amortization
of tenant
improvements 5,947 5,450 9.1% 22,632 18,635 21.4%
+Amortization
of deferred
leasing
commissions 434 610 -28.9% 1,902 2,184 -12.9%
+Other
amortization
including
deferred finance
& non real estate
related costs 285 568 -49.8% 1,922 2,155 -10.8%
-Amortization of
deferred finance
& non real estate
related costs (285) (270) 5.6% (1,127) (962) 17.2%
+Depreciation and
amortization
included in equity
in earnings of
partnership -- 42 -100.0% 100 69 44.9%
-Net gain on sale
of real estate
investments -- -- -- -- (29,680) 100.0%
Funds from
Operations $15,239 $14,016 8.7% $58,737 $52,316 12.3%
Funds from
Operations per
share - basic $0.60 $0.55 9.1% $2.31 $2.09 10.5%
Funds from
Operations per
share - diluted $0.59 $0.55 7.3% $2.28 $2.08 9.6%
RECONCILIATION OF BASIC EARNINGS AND FUNDS FROM OPERATIONS PER SHARE
TO DILUTED EARNINGS AND FUNDS FROM OPERATIONS PER SHARE
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
Net Income
NUMERATOR
Basic:
Net income
attributable to
common share
owners $8,395,000 $7,191,000 $31,502,000 $56,598,000
Diluted:
Net income
attributable to
common share
owners $8,395,000 $7,191,000 $31,502,000 $56,598,000
Income allocated
to exchangeable
limited
partnership units 463,000 425,000 1,806,000 3,317,000
Convertible
preferred stock
distributions* -- -- -- 2,922,000
Diluted net income $8,858,000 $7,616,000 $33,308,000 $62,837,000
DENOMINATOR
Basic:
Weighted average
common shares
outstanding 23,896,953 23,848,450 24,003,077 23,660,542
Diluted:
Weighted average
common shares
outstanding 23,896,953 23,848,450 24,003,077 23,660,542
Effect of dilutive
securities:
Stock options 17,369 44,467 29,513 47,452
Convertible
preferred stock* -- -- -- 1,440,286
Exchangeable
limited
partnership units 1,319,185 1,409,103 1,376,883 1,401,464
Weighted average
shares and assumed
conversions 25,233,507 25,302,020 25,409,473 26,549,744
Basic earnings per share $0.35 $0.30 $1.31 $2.39
Diluted earnings per
share $0.35 $0.30 $1.31 $2.37
* Amounts are not included for the three and twelve month periods ended
December 31, 1999, and the three month period ended December 31, 1998,
as the effects are anti-dilutive.
Funds From Operations
NUMERATOR
Basic:
Funds from
Operations $15,239,000 $14,016,000 $58,737,000 $52,316,000
Diluted:
Funds from
Operations $15,239,000 $14,016,000 $58,737,000 $52,316,000
Convertible
preferred stock
distributions 1,826,000 1,826,000 7,304,000 2,922,000
Diluted Funds from
Operations $17,065,000 $15,842,000 $66,041,000 $55,238,000
DENOMINATOR
Basic:
Weighted average
common shares and
partnership units
outstanding 25,216,138 25,257,553 25,379,960 25,062,006
Diluted:
Weighted average
common shares and
partnership units
outstanding 25,216,138 25,257,553 25,379,960 25,062,006
Effect of dilutive
securities:
Stock options 17,369 44,467 29,513 47,452
Convertible
preferred stock 3,550,652 3,551,672 3,550,833 1,440,286
Weighted average
shares and assumed
conversions 28,784,159 28,853,692 28,960,306 26,549,744
Basic Funds from
Operations per share $0.60 $0.55 $2.31 $2.09
Diluted Funds from
Operations per share $0.59 $0.55 $2.28 $2.08
SOURCE Bradley Real Estate, Inc.
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Related links:
http://www.bradleyrealestate.com
CONTACT:
Thomas P. D'Arcy, Chairman and CEO of Bradley
Real Estate, Inc., 847-272-9800, or Diane Rohlin of The Financial
Relations Board, 312-640-6748
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