Financial Highlights (dollars in 000's, except per share data)
Three Months Ended % Six Months Ended %
June 30, Change June 30, Change
2000 1999 2000 1999
Revenue $39,859 $37,558 6.1% $81,690 $76,911 6.2%
Provision for
merger related
expenses ($1,606) - -100% ($1,806) - -100%
EBITDA $25,866 $24,941 3.7% $53,452 $49,690 7.6%
Funds from
Operations $13,803 $14,544 -5.1% $29,381 $29,045 1.2%
FFO Per Share-
Basic $0.59 $0.57 3.5% $1.24 $1.14 8.8%
FFO Per Share-
Diluted $0.58 $0.56 3.6% $1.21 $1.13 7.1%
Net Income
attributable to
common
shareowners $6,721 $7,831 -14.2% $15,433 $15,642 -1.3%
Net Income Per
Share - Basic $0.30 $0.33 -9.1% $0.69 $0.65 6.2%
Net Income Per
Share - Diluted $0.30 $0.33 -9.1% $0.69 $0.65 6.2%
At June 30, 2000 1999 % Change
Total Market Capitalization $1,103,134 $1,080,765 2.1%
Portfolio Occupancy 93% 94% -1.0%
Total Square Feet 15,220 15,313 -0.6%
No. of Properties 96 95 1.0%
NORTHBROOK, Ill., Aug. 3 /PRNewswire/ -- Bradley Real Estate, Inc.
(NYSE: BTR) today reported second quarter funds from operations per share of
$0.58 per share, or $13.8 million, from $0.56 per share, or $14.5 million a
year earlier. For the six months ended June 30, 2000, funds from operations
per share increased to $1.21 per share, or $29.4 million, compared to $1.13
per share, or $29.0 million, in the prior year. The results for both the
three and six-month periods were negatively impacted by a provision for merger
related expenses of $1.6 million and $1.8 million, respectively, and were
positively impacted by a one-time bankruptcy settlement from HomePlace, a
former tenant at Har Mar Mall, in the amount of $734,000. Excluding the
provision for merger related expenses and the bankruptcy settlement, funds
from operations per share increased 8.9%, to $0.61 per share for the second
quarter of 2000 from the second quarter of 1999, and increased 10.6%, to $1.25
per share for the six months ended June 30, 2000 from the same period in 1999.
All per share amounts are reported on a diluted basis.
Net income attributable to common shareowners for the quarter totaled
$6.7 million, or $0.30 per share, compared with $7.8 million, or $0.33 per
share, for the prior-year quarter. For the six months ended June 30, 2000,
net income attributable to common shareowners totaled $15.4 million, or $0.69
per share, compared to $15.6 million, or $0.65 per share, in the prior year.
Excluding the provision for merger related expenses, and its effect on
minority interest, diluted net income per share increased 12.1%, to $0.37 per
share for the second quarter of 2000 from the second quarter of 1999, and
increased 16.9%, to $0.76 per share for the six months ended June 30, 2000
from the same period in 1999.
At June 30, 2000, total assets were $986.6 million, compared with
$964.7 million a year earlier. The Company's debt to total market
capitalization was 41.2 percent and its debt service coverage ratio for the
quarter was 2.9 times. Total debt outstanding was $454.1 million at a
weighted average interest rate of 7.67 percent and a weighted average maturity
of 4.77 years. At June 30, 2000 the Company had $86.0 million outstanding
under its $250 million unsecured line of credit.
Leasing Activity Review
Portfolio occupancy at quarter-end was 93 percent. Leasing activity
during the quarter included 51 new leases totaling 365,000 square feet at an
average base rent for comparable space of $5.52 per square foot, a 7.4 percent
increase over the prior average base rent. In addition, during the quarter
the Company renewed 51 leases totaling 207,000 square feet at an average base
rent of $8.52 per square foot, a 4.7 percent increase over the prior average
base rent.
Year-to-date, the Company signed 92 new leases, totaling 572,000 square
feet, at an average base rent for comparable space of $7.61 per square foot,
an 8.7 percent increase over the prior average base rent. In addition, the
Company renewed 129 leases, totaling 448,000 square feet, at an average base
rent of $10.03 per square foot, a 6.3 percent increase over the prior average
base rent.
Merger with Heritage
The Company announced on May 15, 2000, that it had executed a definitive
merger agreement pursuant to which Bradley will merge into Heritage Property
Investment Trust, Inc., a private real estate investment trust headquartered
in Boston, Massachusetts.
Under the terms of the agreement, the shareowners of Bradley Common Stock
will receive $22.00 per share cash for all outstanding shares of Bradley. The
holders of Bradley 8.4% Series A Convertible Preferred Stock will receive
approximately $22.458 per share cash for all outstanding shares in accordance
with their terms, based on the conversion ratio into Common Stock of
approximately 1.0208. Each of the limited partners of Bradley Operating
Limited Partnership will be offered the opportunity to remain as limited
partners or receive the same cash consideration as the common stockholders, or
$22.00 per unit, in exchange for their limited partnership interest.
Prudential Real Estate Investors (PREI) and Prudential Mortgage Capital
Company (PMCC) have committed to provide equity and debt financing to Heritage
for the transaction, subject to certain conditions.
On July 14, 2000, the Company mailed the definitive proxy statement with
respect to the merger to all common and preferred stockholders of record as of
July 7, 2000. The Special Meeting of Stockholders at which stockholders will
vote on the merger is scheduled for August 31, 2000.
Thomas P. D'Arcy, Chairman and Chief Executive Officer, stated, "We have
mailed proxy materials relating to our merger with Heritage and we have set
the Special Meeting of Stockholders for August 31, 2000. We currently
anticipate, assuming all other conditions to close are satisfied, that the
transaction will close by the end of the third quarter."
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 15.2 million square feet
of rentable space. The Company has paid 156 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 possibility that market or
other factors could adversely affect Heritage's ability to obtain the
financing necessary to complete the merger or otherwise delay closing of the
merger. 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. The Company undertakes no duty or
obligation to update any forward-looking statement in this press release.
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)
June 30, December 31,
ASSETS 2000 1999 % Change
Real estate investments-at cost $ 1,046,042 $ 1,014,158 3.1%
Accumulated depreciation and
amortization (91,767) (81,302) 12.9%
Net real estate investments 954,275 932,856 2.3%
Real estate investments held
for sale - 29,890 -100.0%
Other assets:
Cash and cash equivalents - 4,434 -100.0%
Rents and other receivables,
net of allowance for
doubtful accounts of $4,156
for 2000 and $4,545 for 1999 14,233 12,273 16.0%
Deferred charges, net and
other assets 18,063 16,714 8.1%
Total assets $ 986,571 $ 996,167 -1.0%
LIABILITIES AND SHARE OWNERS' EQUITY
Mortgage loans $ 93,436 $ 100,718 -7.2%
Unsecured notes payable 274,616 199,604 37.6%
Line of credit 86,000 144,500 -40.5%
Accounts payable, accrued expenses
and other liabilities 32,712 32,787 -0.2%
Total liabilities 486,764 477,609 1.9%
Exchangeable limited partnership
units 18,159 19,306 -5.9%
Series B preferred units 49,100 49,100 0.0%
Series C preferred units 24,344 24,344 0.0%
Total minority interest 91,603 92,750 -1.2%
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
June 30, 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
22,136,119 and 23,079,357
shares at June 30, 2000 and
December 31, 1999,
respectively 317,743 333,907 -4.8%
Shares of excess stock, par
value $.01 per share:
Authorized 50,000,000 shares;
0 shares issued and
outstanding - - -
Retained earnings 3,659 5,099 -28.2%
Total share owners' equity 408,204 425,808 -4.1%
Total liabilities and share owners'
equity $ 986,571 $ 996,167 -1.0%
BRADLEY REAL ESTATE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(UNAUDITED)
Three months ended June 30, Six months ended June 30,
2000 1999 % Change 2000 1999 % Change
Income:
Rental income
and recoveries
from tenants $39,370 $36,872 6.8% $80,148 $75,582 6.0%
Other income 489 686 -28.7% 1,542 1,329 16.0%
39,859 37,558 6.1% 81,690 76,911 6.2%
Expenses:
Operations,
maintenance and
management 4,741 5,405 -12.3% 10,834 12,083 -10.3%
Real estate taxes 5,831 5,556 4.9% 11,902 11,671 2.0%
Mortgage and
other interest 8,254 7,182 14.9% 16,489 14,869 10.9%
General and
administrative 1,815 1,866 -2.7% 3,696 4,067 -9.1%
Provision for
merger related
expenses 1,606 - 100.0% 1,806 - 100.0%
Depreciation and
amortization 7,021 6,484 8.3% 13,885 12,941 7.3%
29,268 26,493 10.5% 58,612 55,631 5.4%
Income before equity
in earnings of
partnership and net
gain on sale of
properties 10,591 11,065 -4.3% 23,078 21,280 8.4%
Equity in earnings
of partnership - 153 -100.0% - 500 -100.0%
Net gain on sale
of properties - - 0.0% 205 - 100.0%
Income before
allocation to
minority interest 10,591 11,218 -5.6% 23,283 21,780 6.9%
Income allocated to
exchangeable
limited partnership
units (380) (452) -15.9% (870) (921) -5.5%
Income allocated to
Series B and C
preferred units (1,664) (1,109) 50.0% (3,328) (1,565) 112.7%
Net income 8,547 9,657 -11.5% 19,085 19,294 -1.1%
Preferred share
distributions (1,826) (1,826) 0.0% (3,652) (3,652) 0.0%
Net income
attributable to
common share
owners $6,721 $7,831 -14.2% $15,433 $15,642 -1.3%
Basic net income
per share $0.30 $0.33 -9.1% $0.69 $0.65 6.2%
Diluted net income
per share $0.30 $0.33 -9.1% $0.69 $0.65 6.2%
CALCULATION OF FUNDS FROM OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 % Change 2000 1999 % Change
Income before
allocation
to minority
interest $10,591 $11,218 -5.6% $23,283 $21,780 6.9%
-Preferred share
distributions (1,826) (1,826) 0.0% (3,652) (3,652) 0.0%
-Income allocated
to Series B and
C preferred units (1,664) (1,109) 50.0% (3,328) (1,565) 112.7%
+Depreciation of
real estate assets
& amortization of
tenant
improvements 6,244 5,553 12.4% 12,372 11,002 12.5%
+Amortization of
deferred leasing
commissions 458 353 29.7% 911 784 16.2%
+Other amortization
including deferred
finance & non-real
estate related
costs 319 578 -44.8% 602 1,155 -47.9%
-Amortization of
deferred finance &
non-real estate
related costs (319) (280) 13.9% (602) (559) 7.7%
+Depreciation and
amortization included
in equity in earnings
of partnership - 57 -100.0% - 100 -100.0%
-Net gain on sale of
real estate
investments - - 0.0% (205) - -100.0%
Funds from
Operations $13,803 $14,544 -5.1% $29,381 $29,045 1.2%
Funds from Operations
per share - basic $0.59 $0.57 3.5% $1.24 $1.14 8.8%
Funds from Operations
per share - diluted $0.58 $0.56 3.6% $1.21 $1.13 7.1%
RECONCILIATION OF BASIC EARNINGS AND FUNDS FROM OPERATIONS PER SHARE
TO DILUTED EARNINGS AND FUNDS FROM OPERATIONS PER SHARE
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Net Income
NUMERATOR
Basic:
Net income
attributable to
common share
owners $6,721,000 $7,831,000 $15,433,000 $15,642,000
Diluted:
Net income
attributable to
common share
owners $6,721,000 $7,831,000 $15,433,000 $15,642,000
Income allocated
to exchangeable
limited partnership
units 380,000 452,000 870,000 921,000
Convertible
preferred stock
distributions* - - - -
Diluted net
income $7,101,000 $8,283,000 $16,303,000 $16,563,000
DENOMINATOR
Basic:
Weighted average
common shares
outstanding 22,137,092 24,056,671 22,376,565 24,026,988
Diluted:
Weighted average
common shares
outstanding 22,137,092 24,056,671 22,376,565 24,026,988
Effect of dilutive
securities:
Stock options 100,706 40,101 51,628 34,823
Convertible
preferred stock* - - - -
Exchangeable
limited
partnership
units 1,250,682 1,387,823 1,261,250 1,414,264
Weighted average
shares and
assumed
conversions 23,488,480 25,484,595 23,689,443 25,476,075
Basic earnings per
share $0.30 $0.33 $0.69 $0.65
Diluted earnings per
share $0.30 $0.33 $0.69 $0.65
*Amounts are not
included, as the
effects are
anti-dilutive
Funds From Operations
NUMERATOR
Basic:
Funds from
Operations $13,803,000 $14,544,000 $29,381,000 $29,045,000
Diluted:
Funds from
Operations $13,803,000 $14,544,000 $29,381,000 $29,045,000
Convertible
preferred
stock
distributions 1,826,000 1,826,000 3,652,000 3,652,000
Diluted Funds
from Operations $15,629,000 $16,370,000 $33,033,000 $32,697,000
DENOMINATOR
Basic:
Weighted average
common shares and
partnership
units
outstanding 23,387,774 25,444,494 23,637,815 25,441,252
Diluted:
Weighted average
common shares
and partnership
units
outstanding 23,387,774 25,444,494 23,637,815 25,441,252
Effect of
dilutive
securities:
Stock options 100,706 40,101 51,628 34,823
Convertibles
preferred stock 3,550,652 3,550,910 3,550,652 3,550,912
Weighted average
shares and
assumed
conversions 27,039,132 29,035,505 27,240,095 29,026,987
Basic Funds from
Operations per
share $0.59 $0.57 $1.24 $1.14
Diluted Funds from
Operations per share $0.58 $0.56 $1.21 $1.13
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, 847-272-9800; or Diane Rohlin of The Financial
Relations Board, 312-640-6748
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