First-Quarter Highlights:
Comparison to prior-year period
* 12% increase in diluted FFO per share
* 18% increase in Funds from Operations
* 36% increase in EBITDA
* 37% growth in total assets
* 18% increase in total market capitalization
* Portfolio occupancy at 93%
Financial Highlights
(in 000's, except per share data)
Three Months Ended %
March 31, 1999 March 31, 1998 Change
Revenues $39,353 $29,355 34%
EBITDA $24,749 $18,138 36%
Funds from Operations $14,501 $12,339 18%
FFO Per Share-Basic $0.57 $0.50 14%
FFO Per Share-Diluted $0.56 $0.50 12%
Net Income to Common Share Owners $7,811 $6,351 23%
Net Income per Share-Basic $0.33 $0.27 22%
Net Income per Share-Diluted $0.33 $0.27 22%
Total Market Capitalization $1,004,926 $853,170 18%
Portfolio Occupancy 93% 92% 1%
Total Square Feet 15.8 million 10.7 million 48%
No. of Properties 98 58 69%
NORTHBROOK, Ill., May 4 /PRNewswire/ -- Bradley Real Estate, Inc.
(NYSE: BTR) reported a 12 percent increase in diluted funds from operations
per share to $0.56 per share compared with $0.50 per share in the year-earlier
period. Basic funds from operations per share were $0.57 per share compared
with $0.50 per share in the year-earlier period. Funds from operations
increased 18 percent to $14.5 million compared with $12.3 million in the 1998
first quarter.
Net income for the quarter totaled $7.8 million, or $0.33 per share,
compared with $6.4 million, or $0.27 per share, for the prior-year quarter.
The computation of diluted net income per share had no effect on basic net
income per share. Total revenues increased 34 percent to $39.4 million from
$29.4 million in the year-ago period.
Commenting on Bradley's first-quarter results, Thomas P. D'Arcy, chairman
and chief executive officer, stated, "The company had a very solid first
quarter reflecting the continued strong performance from property operations
and the effects of our investment activity during 1998. With our strong
capital position, we continue to advance our redevelopment and development
initiatives as we work to build a pipeline of attractive investment
opportunities."
Leasing Activity Remains Strong
Portfolio occupancy at March 31 was 93 percent, a one-percentage point
increase over a year ago. Leasing activity remained strong during the quarter
with 22 new leases signed totaling 162,000 square feet at an average base rent
for comparable space of $10.59 per square foot, representing an increase of
six percent over prior average base rent. In addition, during the quarter the
company renewed 72 leases totaling 343,000 square feet at an average base rent
of $9.27 per square foot, also a six percent increase over the prior average
base rent.
Redevelopment of Chicago Ridge
During the first quarter, the company completed the necessary lease
transactions in its planned redevelopment of its Chicago Ridge center located
in metropolitan Chicago. The redeveloped center will be anchored by a new
111,000-square-foot Home Depot. The project, which is expected to be
completed over the next 18 months, will represent an investment of
approximately $9.5 million and involve the demolition of some existing
space and the relocation of various tenants.
Commenting on the project, Chief Executive Officer Thomas D'Arcy stated,
"Chicago Ridge represents the type of redevelopment investment opportunity
upon which Bradley is focusing. We are projecting a high return on invested
capital while adding substantial long-term value to an existing center. We
believe there are several such opportunities within our existing portfolio.
We also continue to work to establish a pipeline of development opportunities
and potential acquisitions of shopping centers where our redevelopment
expertise can create enhanced returns."
Issuance of Perpetual Preferred Operating Partnership Units
In February, the company, through its affiliated operating partnership,
Bradley Operating Limited Partnership (BOLP), completed a $50 million private
placement of 2 million 8.875 percent Series B Cumulative Redeemable Perpetual
Preferred Units to two institutional investors, applying the proceeds to
outstanding borrowings under its $250 million line of credit facility.
Remaining capacity under the line of credit at March 31 stood at $130.5
million. Irving Lingo, chief financial officer, stated, "This offering
enabled us to strengthen our capital structure, replacing floating rate
debt with permanent capital thus adding liquidity and flexibility to fund our
investment activities."
Balance Sheet Review
At March 31, 1999, total assets were $966.6 million, up from $704.9
million a year earlier. Total debt outstanding was $421.7 million at a
weighted average interest rate of 7.02 percent and a weighted average maturity
of 5.45 years. Total debt outstanding includes fixed-rate debt of $302.2
million at a weighted average interest rate of 7.44 percent and a weighted
average maturity of 6.91 years. The floating rate portion of Bradley's total
debt consists of $119.5 million outstanding under the company's $250 million
unsecured line of credit facility, which matures in December 2000.
Bradley Real Estate, Inc. 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 16 states, aggregating 15.8 million square feet
of rentable space. The company has paid 151 consecutive quarterly
distributions to its shareholders, the longest record of distributions among
publicly traded REITs.
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 is available upon request from the company.
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 and the
continuing availability of retail center acquisitions and development
opportunities in the Midwest on favorable terms. 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.
BRADLEY REAL ESTATE, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
(UNAUDITED)
March 31, December 31,
ASSETS 1999 1998 % Change
Real estate investments-at cost $939,398 $936,465 0.3%
Accumulated depreciation and
amortization (64,548) (59,196) 9.0%
Net real estate investments 874,850 877,269 -0.3%
Real estate investments
held for sale 46,492 46,492 0.0%
Other assets:
Cash and cash equivalents 109 - 100.0%
Rents and other receivables, net
of allowance for doubtful accounts
of $4,305 for 1999 and $4,078
for 1998 15,235 14,994 1.6%
Investment in partnership 13,196 13,249 -0.4%
Deferred charges, net and
other assets 16,678 16,676 0.0%
Total assets $966,560 $968,680 -0.2%
LIABILITIES AND SHARE OWNERS' EQUITY
Mortgage loans $102,655 $103,333 -0.7%
Unsecured notes payable 199,557 199,542 0.0%
Line of credit 119,500 169,500 -29.5%
Accounts payable, accrued
expenses and other liabilities 29,199 29,415 -0.7%
Total liabilities 450,911 501,790 -10.1%
Exchangeable limited partnership
units 20,824 21,573 -3.5%
Series B preferred units 49,100 - 100.0%
Total minority interest 69,924 21,573 224.1%
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;
issued and outstanding 3,478,471
and 3,478,493 shares of Series A
Convertible Preferred Stock at
March 31, 1999 and December 31,
1998, respectively 86,809 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 24,055,952
and 23,958,662 shares at March 31,
1999 and December 31, 1998,
respectively 350,751 349,254 0.4%
Shares of excess stock, par value
$.01 per share:
Authorized 50,000,000 shares;
0 shares issued and outstanding - - -
Retained earnings (distributions
in excess of accumulated earnings)8,165 9,254 -11.8%
Total share owners' equity 445,725 445,317 0.1%
Total liabilities and share
owners' equity $966,560 $968,680 -0.2%
BRADLEY REAL ESTATE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(UNAUDITED)
Three Months Ended March 31,
1999 1998 % Change
Income:
Rental income $38,710 $28,736 34.7%
Other income 643 619 3.9%
39,353 29,355 34.1%
Expenses:
Operations, maintenance and
management 6,678 4,333 54.1%
Real estate taxes 6,115 5,481 11.6%
Mortgage and other interest 7,687 5,558 38.3%
General and administrative 2,201 1,403 56.9%
Depreciation and amortization 6,457 4,963 30.1%
Total 29,138 21,738 34.0%
Income before equity in earnings of
partnership and provision for loss
on real estate investment 10,215 7,617 34.1%
Equity in earnings of partnership 347 - 100.0%
Provision for loss on real estate
investment - (875) 100.0%
Income before allocation to minority
interest 10,562 6,742 56.7%
Income allocated to exchangeable
limited partnership units (469) (391) 19.9%
Income allocated to Series B
preferred units (456) - -100.0%
Net income 9,637 6,351 51.7%
Preferred share distributions (1,826) - -100.0%
Net income attributable to common
share owners $ 7,811 $ 6,351 23.0%
Basic net income per share $0.33 $0.27 22.2%
Diluted net income per share $0.33 $0.27 22.2%
CALCULATION OF FUNDS FROM OPERATIONS
Three Months Ended March 31,
1999 1998 % Change
Income before allocation to minority
interest $10,562 $6,742 56.7%
-Preferred share distributions (1,826) - -100.0%
-Income allocated to Series B preferred
units (456) - -100.0%
+ Depreciation of real estate assets
& amortization of tenant improvements 5,449 3,931 38.6%
+Amortization of deferred leasing
commissions 431 493 -12.6%
+Other amortization including
deferred finance & non-real
estate related costs 577 539 7.1%
-Amortization of deferred finance
& non-real estate related costs (279) (241) 15.8%
+Depreciation and amortization
included in equity in earnings
of partnership 43 - 100.0%
-Net (gain) provision for loss
on real estate investments - 875 -100.0%
Funds from Operations $14,501 $12,339 17.5%
Funds from Operations
per share - basic $0.57 $0.50 14.0%
Funds from Operations
per share - diluted $0.56 $0.50 12.0%
RECONCILIATION OF BASIC EARNINGS AND FUNDS FROM OPERATIONS PER SHARE TO
DILUTED EARNINGS AND FUNDS FROM OPERATIONS PER SHARE
Three Months Ended March 31,
1999 1998
Net Income
NUMERATOR
Basic:
Net income attributable to
common share owners $7,811,000 $6,351,000
Diluted:
Net income attributable to
common share owners $7,811,000 $6,351,000
Income allocated to exchangeable
limited partnership units 469,000 391,000
Diluted net income $8,280,000 $6,742,000
DENOMINATOR
Basic:
Weighted average common
shares outstanding 23,996,976 23,301,629
Diluted:
Weighted average common
shares outstanding 23,996,976 23,301,629
Effect of dilutive securities:
Stock options 31,294 54,379
Exchangeable limited partnership
units 1,440,998 1,435,311
Weighted average shares and
assumed conversions 25,469,268 24,791,319
Basic net income per share $0.33 $0.27
Diluted net income per share $0.33 $0.27
Funds From Operations
NUMERATOR
Basic:
Funds from operations $14,501,000 $12,339,000
Diluted:
Funds from operations $14,501,000 $12,339,000
Convertible preferred
stock distributions 1,826,000 -
Diluted funds from
operations $16,327,000 $12,339,000
DENOMINATOR
Basic:
Weighted average common
shares and partnership
units outstanding 25,437,974 24,736,940
Diluted:
Weighted average common
shares and partnership
units outstanding 25,437,974 24,736,940
Effect of dilutive securities:
Stock options 31,294 54,379
Convertible preferred stock 3,550,913 -
Weighted average shares and
assumed conversions 29,020,181 24,791,319
Basic Funds from Operations
per share $0.57 $0.50
Diluted Funds from Operations
per share $0.56 $0.50
SOURCE Bradley Real Estate, Inc.
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CONTACT:
Thomas P. D'Arcy, Chairman and CEO of Bradley
Real Estate, Inc. 847-272-9800, or Ellen McGinnis of The
Financial Relations Board, 312-266-7800 ext. 233
NOTE TO EDITORS: To receive additional information on Bradley
Real Estate free of charge via fax, dial 1-800-PRO-INFO and enter
"BTR."
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