Three Months Ended
March 31,
2000 1999 Percent
(Dollars in thousands, except per share data) Change
Revenues $41,831 $39,353 6.3%
EBITDA $27,586 $24,749 11.5%
Funds from Operations $15,578 $14,501 7.4%
FFO Per Share Basic $0.65 $0.57 14.0%
FFO Per Share Diluted $0.63 $0.56 12.5%
Net Income to Common Shareowners $8,712 $7,811 11.5%
Net Income Per Share Basic $0.39 $0.33 18.2%
Net Income Per Share Diluted $0.38 $0.33 15.2%
NORTHBROOK, Ill., May 4 /PRNewswire/ -- Bradley Real Estate, Inc.
(NYSE: BTR) today reported funds from operations for the quarter of
$15.6 million, or $0.63 per share, compared to $14.5 million, or $0.56 per
share for the prior-year quarter, representing an increase of 12.5 percent.
Net income attributable to common shareowners for the quarter totaled
$8.7 million, or $0.38 per share, compared with $7.8 million, or $0.33 per
share, for the prior-year quarter, representing a per share increase of
15.2 percent. The quarterly results were positively impacted by a one-time
settlement of $487,500 from a former tenant and guarantor of a space
previously leased to HomePlace at Har Mar Mall. All per-share amounts are
reported on a diluted basis.
Commenting on the quarterly results, Thomas P. D'Arcy, chairman and chief
executive officer, stated, "The Company experienced another solid quarter
driven by strong same store growth in net operating income and continued
improvement in operating margins. We also strengthened our capital structure
through our $75 million unsecured note offering and the sale of three non-core
assets. Proceeds from both of these transactions were used to reduce floating
rate debt outstanding under our line of credit."
At March 31, 2000 total assets were $986 million, up from $967 million in
the prior-year period. The Company's debt to gross book asset value was
43.5 percent and its debt service coverage was 3.1 times. During March, the
Company completed a $75 million offering of 8.875 percent unsecured Notes
maturing in 2006. Proceeds from the offering were used to reduce the
outstanding balance under the Company's unsecured line of credit. At March
31, 2000, the Company had $167 million available under its $250 million
unsecured line of credit.
Portfolio Occupancy and Leasing Activity
Portfolio occupancy at quarter-end was 93 percent. Leasing activity
continued to show strength with 41 new leases signed during the quarter,
totaling 207,000 square feet at an average base rent for comparable space of
$10.38 per square foot, a 9.8 percent increase over the prior average base
rent. In addition, during the quarter the Company renewed 78 leases totaling
241,000 square feet, at an average base rent of $11.32 per square foot, a
7.2 percent increase over the prior average base rent.
Acquisitions & Dispositions
In February, the Company acquired West Loop Shopping Center, a
199,000-square-foot center anchored by Dillons Market, located in Manhattan,
Kansas for $12.5 million. Also in February, the Company acquired Hub Center,
a 161,000-square-foot center anchored by Price Chopper, located in
Independence, Missouri for $6.6 million.
On March 31, 2000, the Company completed the sale of three properties
which were acquired through its acquisition of Mid-America Realty Investments
in August 1998. The three centers, Delta Plaza located in Escanaba, Michigan,
Lakewood Mall located in Aberdeen, South Dakota and Thunderbird Mall located
in Virginia, Minnesota, were all enclosed malls located in smaller markets
which were non-core to the Company's grocery-anchor community shopping center
focus. The centers were sold for an aggregate sales price of approximately
$31 million. Proceeds from the sale were used to reduce the outstanding
balance under the Company's unsecured line of credit.
Redevelopment & Development Update
The Company currently has four redevelopment projects representing an
aggregate cost upon completion of approximately $51 million. During April, a
new 62,000-square-foot Hen House grocer opened at the Company's Prospect Plaza
redevelopment and occupancy for this project now stands at 87 percent. The
Company's remaining redevelopment projects, The Commons of Chicago Ridge,
30th Street Plaza and Cherry Hill Marketplace, are all proceeding as planned
with completion of each project expected later this year.
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. As of March 31, 2000, the Company had repurchased approximately
1.9 million shares at an average purchase price of approximately $16.97 per
share.
Outlook
Commenting on the Company's outlook, Mr. D'Arcy continued, "We are off to
a strong start in 2000. Our properties continue to perform well, our leasing
efforts are on plan and our development and redevelopment pipeline is
continuing to build momentum. We are presently working on the renewal of our
line of credit that expires in December, and anticipate completing the renewal
before the end of the second quarter. We continue to acknowledge the
difficult state of the real estate capital markets, the high cost of equity
capital and constrained debt availability, and we continue to calibrate our
investment activities accordingly. As always, maintaining a flexible,
conservative capital structure continues to be a primary objective."
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
96 shopping centers located in 15 states aggregating 15 million square feet of
rentable space. The Company has paid 155 consecutive quarterly dividends to
its shareowners.
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 1999 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.
To receive additional information on Bradley Real Estate free of charge
via fax, dial 1-800-PRO-INFO and enter "BTR" or visit the company's website at
http://www.bradleyrealestate.com .
BRADLEY REAL ESTATE, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
(UNAUDITED)
March 31, December 31,
ASSETS 2000 1999 % Change
Real estate investments-at
cost $1,038,006 $1,014,158 2.4%
Accumulated depreciation
and amortization (85,852) (81,302) 5.6%
Net real estate investments 952,154 932,856 2.1%
Real estate investments held
for sale - 29,890 -100.0%
Other assets:
Cash and cash equivalents 260 4,434 -94.1%
Rents and other receivables,
net of allowance for doubtful
accounts of $4,036 for 2000
and $4,545 for 1999 15,678 12,273 27.7%
Deferred charges, net and
other assets 17,718 16,714 6.0%
Total assets $985,810 $996,167 -1.0%
LIABILITIES AND SHARE OWNERS' EQUITY
Mortgage loans $94,085 $100,718 -6.6%
Unsecured notes payable 274,600 199,604 37.6%
Line of credit 83,000 144,500 -42.6%
Accounts payable, accrued
expenses and other liabilities 32,085 32,787 -2.1%
Total liabilities 483,770 477,609 1.3%
Exchangeable limited partnership
units 18,251 19,306 -5.5%
Series B preferred units 49,100 49,100 0.0%
Series C preferred units 24,344 24,344 0.0%
Total minority interest 91,695 92,750 -1.1%
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; 3,478,219
shares of Series A Convertible
Preferred Stock issued and
outstanding at March 31,
2000 and December 31, 1999 86,802 86,802 0.0%
Shares of common stock and
paid-in capital, par value
$.01 per share: Authorized
80,000,000 shares; issued and
outstanding 22,171,886 and
23,079,357 shares at
March 31, 2000 and
December 31, 1999,
respectively 318,194 333,907 -4.7%
Shares of excess stock, par
value $.01 per share:
Authorized 50,000,000 shares;
0 shares issued and outstanding - - -
Retained earnings 5,349 5,099 4.9%
Total share owners' equity 410,345 425,808 -3.6%
Total liabilities and share
owners' equity $985,810 $996,167 -1.0%
BRADLEY REAL ESTATE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(UNAUDITED)
Three Months Ended March 31,
2000 1999 % Change
Income:
Rental income and recoveries
from tenants $40,778 $38,710 5.3%
Other income 1,053 643 63.8%
41,831 39,353 6.3%
Expenses:
Operations, maintenance and
management 6,093 6,678 -8.8%
Real estate taxes 6,071 6,115 -0.7%
Mortgage and other interest 8,235 7,687 7.1%
General and administrative 2,081 2,201 -5.5%
Depreciation and amortization 6,864 6,457 6.3%
29,344 29,138 0.7%
Income before equity in
earnings of partnership
and net gain on sale of
properties 12,487 10,215 22.2%
Equity in earnings of
partnership - 347 -100.0%
Net gain on sale of properties 205 - 100.0%
Income before allocation to
minority interest 12,692 10,562 20.2%
Income allocated to
exchangeable limited
partnership units (490) (469) 4.5%
Income allocated to Series B
and C preferred units (1,664) (456) 264.9%
Net income 10,538 9,637 9.3%
Preferred share distributions (1,826) (1,826) 0.0%
Net income attributable to
common share owners $8,712 $7,811 11.5%
Basic earnings per share $0.39 $0.33 18.2%
Diluted earnings per share $0.38 $0.33 15.2%
CALCULATION OF FUNDS FROM OPERATIONS
Three Months Ended March 31,
2000 1999 % Change
Income before allocation to
minority interest $12,692 $10,562 20.2%
-Preferred share distributions (1,826) (1,826) 0.0%
-Income allocated to Series B
and C preferred units (1,664) (456) 264.9%
+Depreciation of real estate
assets & amortization of
tenant improvements 6,128 5,449 12.5%
+Amortization of deferred
leasing commissions 453 431 5.1%
+Other amortization including
deferred finance & non real
estate related costs 283 577 -51.0%
-Amortization of deferred finance
& non real estate related costs (283) (279) 1.4%
+Depreciation and amortization
included in equity in earnings
of partnership - 43 -100.0%
-Net gain on sale of real estate
investments (205) - -100.0%
Funds from Operations $15,578 $14,501 7.4%
Funds from Operations
per share - basic $0.65 $0.57 14.0%
Funds from Operations
per share - diluted $0.63 $0.56 12.5%
RECONCILIATION OF BASIC EARNINGS AND FUNDS FROM OPERATIONS PER SHARE
TO DILUTED EARNINGS AND FUNDS FROM OPERATIONS PER SHARE
Three Months Ended March 31,
2000 1999
Net Income
NUMERATOR
Basic:
Net income attributable to common share
owners $8,712,000 $7,811,000
Diluted:
Net income attributable to common share
owners $8,712,000 $7,811,000
Income allocated to exchangeable limited
partnership units 490,000 469,000
Adjusted net income $9,202,000 $8,280,000
DENOMINATOR
Basic:
Weighted average common shares outstanding 22,617,082 23,996,976
Diluted:
Weighted average common shares outstanding 22,617,082 23,996,976
Effect of dilutive securities:
Stock options 16,463 31,294
Exchangeable limited partnership units 1,271,819 1,440,998
Weighted average shares and assumed
conversions 23,905,364 25,469,268
Basic earnings per share $0.39 $0.33
Diluted earnings per share $0.38 $0.33
Funds From Operations
NUMERATOR
Basic:
Funds from Operations $15,578,000 $14,501,000
Diluted:
Funds from Operations $15,578,000 $14,501,000
Convertible preferred stock distributions 1,826,000 1,826,000
Diluted Funds from Operations $17,404,000 $16,327,000
DENOMINATOR
Basic:
Weighted average common shares and
partnership units outstanding 23,888,901 25,437,974
Diluted:
Weighted average common shares and
partnership units outstanding 23,888,901 25,437,974
Effect of dilutive securities:
Stock options 16,463 31,294
Convertible preferred stock 3,550,652 3,550,913
Weighted average shares and assumed
conversions 27,456,016 29,020,181
Basic Funds from Operations per share $0.65 $0.57
Diluted Funds from Operations per share $0.63 $0.56
SOURCE Bradley Real Estate
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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, Diane Rohlin of The Financial
Relations Board, 312-640-6748
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