NORTHBROOK, Ill., Feb. 18 /PRNewswire/ -- Bradley Real Estate, Inc.
(NYSE: BTR) today reported funds from operations (FFO) for the year of
$30.3 million, or $1.72 per share, compared with $15.2 million, or $1.55 per
share, in the prior year. This represents an increase in per share FFO of
11 percent over 1995.
Net income increased to $27.2 million, or $1.54 per share, from
$8.4 million, or 85 cents per share, for the prior year. Net income for 1996
includes a gain of $9.4 million on the sale of the company's ground lease in
Minneapolis during the first quarter of 1996. Absent that gain, 1996 net
income would have been $17.8 million, or $1.01 per share.
Weighted average shares outstanding were 17,619,546 for 1996 compared with
9,863,767 for the prior year. The increase in weighted average shares
occurred primarily as a result of the issuance of 7.4 million shares upon the
acquisition of Tucker Properties Corporation, which was completed in March
1996, and a 2.875-million-share offering of the company's stock, which was
completed in early November 1996. Total assets at December 31, 1996, amounted
to $502.3 million compared with $180.5 million at the end of the prior year.
Fourth-Quarter Results
Fourth-quarter FFO was $9.6 million, or 47 cents per share, compared with
$4.4 million, or 39 cents per share, in the prior year's comparable quarter.
The results represent a 21 percent increase in FFO per share over the prior
period.
Net income for the period totaled $6.1 million, or 30 cents per share,
compared with $2.6 million, or 23 cents per share, for the comparable period
last year. Weighted average shares outstanding increased to 20,567,723 from
11,226,727 in the year-ago period.
Commenting on the results for the quarter, Thomas D'Arcy, president and
chief executive officer, stated, "We had a very productive 1996 and an active
fourth quarter as we continued to aggressively implement our plan to establish
Bradley as a dominant owner of grocery-focused retail centers operating in the
Midwest. A key component of this plan is an aggressive acquisition program
that targets for purchase approximately $150 million of Midwest
grocery-anchored retail properties during 1997. As we reported last month, we
are off to a positive start toward this goal with our recent purchase of four
grocery-anchored centers for $25 million, at an initial cash yield of
10.9 percent. We remain encouraged by the number and quality of acquisition
opportunities we continue to identify throughout our Midwest target markets."
D'Arcy continued, "In support of this program, during the fourth quarter
we strengthened our capital position by raising $45 million in new equity,
which will help fund our acquisition program while maintaining a strong and
flexible capital structure. Although the increase in shares outstanding due
to this offering will initially serve to slightly reduce our per share FFO, we
expect that for the year the continued execution of our acquisition program
will positively affect company operating results."
Operational Review
For the fourth quarter, property occupancy was 90 percent compared with
89 percent for the previous quarter. During the quarter the company signed
20 new leases totaling 91,000 square feet at an average rate of $7.68 per
square foot. In addition, the company renewed 18 leases totaling
52,000 square feet at an average rate of $12.34 per square foot, a 7.7 percent
increase over the prior period average rental rate. Subsequent to year-end,
the company entered into a new lease with J.C. Penney to occupy 55,000 square
feet at the company's Chicago Ridge, Illinois center. The property which was
75 percent leased when acquired last March as part of the Tucker transaction,
is now 95 percent leased, according to the company.
Commenting on operations, D'Arcy said, "Although the retail leasing
markets remain competitive, the 1 percent increase in occupancy is a healthy
sign that our leasing efforts are resulting in completed transactions. We
remain intensely focused on improving the performance of the existing
portfolio and remain optimistic regarding the direction of occupancy levels,
base rents and rental margins. We believe the composition of our portfolio
will allow us to continue to enhance the cash flow from our existing asset
base."
In addition to the regular quarterly earnings releases, Bradley Real
Estate also makes available on a quarterly basis supplemental information that
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 no further weakness in the Midwestern United
States retailing climate and the continuing availability of retail center
acquisitions. Reference is made to the discussions under the captions "Risk
Factors" in the company's October 29, 1996, Prospectus Supplement relating to
its recent Common Stock Offering and in the company's 1995 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. is the nation's oldest continuously qualified
real estate investment trust (REIT) and has made 142 consecutive quarterly
dividend payments. The company is a leading owner and operator of
neighborhood and community shopping centers located in the Midwest. The
company currently owns 35 properties aggregating 8 million square feet of
rentable space.
BRADLEY REAL ESTATE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(UNAUDITED)
Three months ended Year Ended
December 31, December 31,
1996 1995 1996 1995
Income:
Rental income $22,869 $9,708 $77,512 $36,405
Other income 331 26 1,327 167
Total 23,200 9,734 78,839 36,572
Expenses:
Operations, maintenance
and management 3,672 1,623 12,949 5,858
Real estate taxes 4,724 2,346 16,787 8,726
Mortgage and other interest 3,744 879 13,404 4,705
Administrative and general 1,145 381 3,532 1,535
Corporate office relocation -- -- 409 --
Write-off of deferred
financing and acquisition
costs -- -- 344 --
Depreciation and
amortization 3,713 1,904 13,286 7,317
Total 16,998 7,133 60,711 28,141
Income before gain on sale
of property 6,202 2,601 18,128 8,431
Gain on sale of property -- -- 9,379 --
Income before allocation to
minority interest 6,202 2,601 27,507 8,431
Income allocated to minority
interest (92) -- (285) --
Net income $6,110 $2,601 $27,222 $8,431
Weighted average shares
outstanding 20,567,723 11,226,727 17,619,546 9,863,767
Net income per share $0.30 $0.23 $1.54 $0.85
Funds From Operations:
Net income $6,110 $2,601 $27,222 $8,431
Net gain on sale of property -- -- (9,379) --
Depreciation and amortization
of real estate assets,
tenant improvements and leasing
commissions 3,506 1,787 12,502 6,818
Funds From Operations $9,616 $4,388 $30,345 $15,249
Write off of deferred
financing costs -- -- 251 --
Amortization of financing &
non real estate related costs 207 117 784 499
Funds From Operations,
old definition $9,823 $4,505 $31,380 $15,748
Per share data:
Funds From Operations $0.47 $0.39 $1.72 $1.55
Funds From Operations,
old definition $0.48 $0.40 $1.78 $1.60
BRADLEY REAL ESTATE, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
(UNAUDITED)
December 31, December 31,
1996 1995
Assets
Real estate investments, at cost $490,133 $189,405
Accumulated depreciation and amortization (30,670) (27,591)
Net real estate investments 459,463 161,814
Real estate investments held for sale 10,285 --
Cash and cash equivalents 7,462 697
Rents and other receivables,
net of allowance for doubtful
accounts of $1,636 and $711, respectively 9,543 8,671
Unamortized buyout of contract, net 3,180 4,372
Deferred charges, net and other assets 12,351 4,991
Total $502,284 $180,545
Liabilities and Stockholders' Equity
Mortgage loans $125,394 $24,794
Line of credit 63,500 14,600
Accounts payable, accrued expenses
and other liabilities 19,505 6,053
Total liabilities 208,399 45,447
Minority interest 4,160 --
Stockholders' equity:
Shares of common stock, par value $.01
per share; authorized 80,000,000 shares;
issued and outstanding, 21,658,790 at
December 31, 1996 and 11,230,313 at
December 31, 1995 217 112
Additional paid-in capital 298,875 148,407
Distributions in excess of
accumulated earnings (9,367) (13,421)
Total stockholders' equity 289,725 135,098
Total $502,284 $180,545
SOURCE Bradley Real Estate, Inc.
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CONTACT:
Thomas P. D'Arcy, President and CEO, of
Bradley Real Estate, Inc., 847-272-9800; or Jenifer Estabrook of
the Financial Relations Board, 312-640-6787
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