Urstadt Biddle Properties Inc. Reports Operating Results (10-Q)
Urstadt Biddl-a has a market cap of $520.1 million; its shares were traded at around $18.96 with a P/E ratio of 15.4 and P/S ratio of 5.7. The dividend yield of Urstadt Biddl-a stocks is 5.7%. Urstadt Biddl-a had an annual average earning growth of 0.1% over the past 5 years.
Highlight of Business Operations:Primarily as a result of property acquisitions in fiscal 2011 and 2012, the Company s financial data shows increases in total revenues (excluding the lease termination income in fiscal 2011) and expenses for the six month period ended April 30, 2012 when compared to the corresponding period of the prior year.
Revenues from operating leases include revenues from core properties and non-core properties. Rental income is generally recognized based on the terms of leases entered into with tenants. In those instances in which the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. When the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. Minimum rental income from leases with scheduled rent increases is recognized on a straight-line basis over the lease term. Percentage rent is recognized when a specific tenant s sales breakpoint is achieved. Property operating expense recoveries from tenants of common area maintenance, real estate taxes and other recoverable costs are recognized in the period the related expenses are incurred. Lease incentives are amortized as a reduction of rental revenue over the respective tenant lease terms. Lease termination amounts are recognized in operating revenues when there is a signed termination agreement, all of the conditions of the agreement have been met, the tenant is no longer occupying the property and the termination consideration is probable of collection. Lease termination amounts are paid by tenants who want to terminate their lease obligations before the end of the contractual term of the lease by agreement with the Company. There is no way of predicting or forecasting the timing or amounts of future lease termination fees. Interest income is recognized as it is earned. Gains or losses on disposition of properties are recorded when the criteria for recognizing such gains or losses under U.S. GAAP have been met.
At April 30, 2012, the Company had unrestricted cash and cash equivalents of $4.1 million compared to $4.5 million at October 31, 2011. The Company's sources of liquidity and capital resources include its cash and cash equivalents, proceeds from bank borrowings and long-term mortgage debt, capital financings and sales of real estate investments. Payments of expenses related to real estate operations, debt service, management and professional fees, and dividend requirements place demands on the Company's short-term liquidity.
In the last three quarters of fiscal 2011 and first two quarters of fiscal 2012, the Company purchased three properties and formed a joint venture that it consolidates totaling approximately 231,500 square feet of GLA. These properties accounted for all of the revenue and expense changes attributable to property acquisitions during the six month period ended April 30, 2012.
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