Urban Edge Properties Reports First Quarter 2021 Results | Financial Buzz

Urban Edge Properties Reports First Quarter 2021 Results

Urban Edge Properties (NYSE: UE) (the “Company”) today announced its results for the quarter ended March 31, 2021.

“We are encouraged by the momentum of the retail recovery as we continue to execute on our leasing, development and redevelopment strategies. Our leasing pipeline reflects strong demand from grocers, discounters and a variety of restaurants,” said Jeff Olson, Chairman and CEO. “Our rent collection rate has now reached 95%, and we expect further improvement as state and local operating restrictions are lifted in the New York metropolitan area.”

Financial Results(1)(2)

  • Generated net income attributable to common shareholders of $20.7 million, or $0.17 per diluted share, for the first quarter of 2021 compared to $51.3 million, or $0.40 per diluted share, for the first quarter of 2020.
  • Generated Funds from Operations applicable to diluted common shareholders (“FFO”) of $31.8 million, or $0.26 per share, for the quarter compared to $34.8 million, or $0.27 per share, for the first quarter of 2020.
  • Generated FFO as Adjusted of $32.3 million, or $0.26 per share, for the quarter compared to $34.9 million, or $0.28 per share, for the first quarter of 2020.

Operating Results(1)(3)

  • Reported a decline of 5.8% in same-property Net Operating Income (“NOI”), including properties in redevelopment, compared to the first quarter of 2020.
  • Reported a decline of 5.2% in same-property NOI, excluding properties in redevelopment, compared to the first quarter of 2020.
  • Reported a decline in same-property occupancy to 91.3%, down 50 basis points compared to December 31, 2020 and down 190 basis points compared to March 31, 2020.
  • Reported a decline in consolidated occupancy to 88.9%, down 50 basis points compared to December 31, 2020 and down 390 basis points compared to March 31, 2020.
  • Executed 44 new leases, renewals and options totaling 357,000 square feet (“sf”) during the quarter. Generated average rent spreads of 7.1% on a GAAP basis and 2.9% on a cash basis on same-space leases totaling 355,000 sf.

Balance Sheet and Liquidity(1)(4)

The Company continues to maintain one of the strongest and most liquid balance sheets in the sector.

Balance sheet highlights as of March 31, 2021 include:

  • Total liquidity of approximately $1 billion, comprised of $377 million of cash on hand and $600 million available under our revolving credit agreement.
  • Weighted average term to maturity of 5.2 years.
  • Total market capitalization of approximately $3.6 billion, comprised of 122.4 million fully-diluted common shares valued at $2.0 billion and $1.6 billion of debt.
  • Net debt to total market capitalization of 34%.
  • Net debt to Adjusted Earnings before interest, tax, depreciation and amortization for real estate (“EBITDAre”) of 6.4x.

Leasing, Development and Redevelopment

During the quarter, the Company completed two anchor redevelopment projects with total costs of $14.3 million and an estimated blended unleveraged yield of 10%:

  • Bed Bath & Beyond and buybuy Baby opened at the Plaza at Woodbridge in Woodbridge, NJ
  • Emmis Communications opened an 11,000 sf office at Huntington Commons in Huntington, NY

The Company also commenced a $3 million redevelopment project in connection with executing leases with Five Below and Skechers at Tonnelle Commons in North Bergen, NJ. We expect the tenants will open by the second quarter of 2022.

Active redevelopment projects consist of $121.1 million of estimated gross costs, of which $81.7 million remains to be funded. These projects are expected to generate an approximate 8% unleveraged yield. As of May 5, 2021, these projects were 80% leased(5).

The Company has signed leases that have not yet rent commenced aggregating $10 million of gross revenue, representing approximately 5% of NOI.

Disposition Activity

During the quarter, the Company sold two small properties aggregating 70,000 sf for approximately $24 million and recognized a gain on sale of real estate of $11.7 million.

Subsequent to the quarter, the Company entered into a contract to sell a ground lease in Wheaton, MD for $9.4 million.

The weighted average cap rate on properties sold during the quarter and under contract is approximately 7%.

COVID-19 Business Update

As of April 29, 2021, the Company collected 95% of gross rent for the first quarter of 2021. The Company continues to make progress on 2020 receivables. The table below summarizes the status of the Company’s gross rent collections for the past three quarters:

 

% Collected

 

4Q 2020

 

3Q 2020

 

2Q 2020

As of April 29, 2021

95%

 

90%

 

82%

As of February 12, 2021

93%

 

89%

 

81%

As of November 3, 2020

N/A

 

83%

 

77%

As of August 4, 2020

N/A

 

N/A

 

72%

As of April 29, 2021, the Company has executed or approved $9.8 million of deferral agreements (3.4% of gross rents) from the second, third and fourth quarters of 2020 with a weighted average payback period of 17 months. The Company has deferred less than 1% of gross rents from the first quarter of 2021.

Additional information related to the COVID-19 pandemic is included in the quarterly supplemental disclosure package which can be found on the Company’s website (www.uedge.com).

(1)

 

Refer to “Non-GAAP Financial Measures” and “Operating Metrics” for definitions and additional detail.

(2)

 

Refer to page 5 for a reconciliation of net income to FFO and FFO as Adjusted for the quarter ended March 31, 2021.

(3)

 

Refer to page 6 for a reconciliation of net income to NOI and Same-Property NOI for the quarter ended March 31, 2021.

(4)

 

Net debt as of March 31, 2021 is calculated as total consolidated debt of $1.6 billion less total cash and cash equivalents, including restricted cash, of $377 million.

(5)

 

Excluding self storage occupancy.

Non-GAAP Financial Measures

The Company uses certain non-GAAP performance measures, in addition to the primary GAAP presentations, as we believe these measures improve the understanding of the Company’s operational results. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the investing public, and thus such reported measures are subject to change. The Company’s non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results. Additionally, the Company’s computation of non-GAAP metrics may not be comparable to similarly titled non-GAAP metrics reported by other REITs or real estate companies that define these metrics differently and, as a result, it is important to understand the manner in which the Company defines and calculates each of its non-GAAP metrics. The following non-GAAP measures are commonly used by the Company and investing public to understand and evaluate our operating results and performance:

  • FFO: The Company believes FFO is a useful, supplemental measure of its operating performance that is a recognized metric used extensively by the real estate industry and, in particular real estate investment trusts (“REITs”). FFO, as defined by the National Association of Real Estate Investment Trusts (“Nareit”) and the Company, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable real estate and land when connected to the main business of a REIT, impairments on depreciable real estate or land related to a REIT’s main business and rental property depreciation and amortization expense. The Company believes that financial analysts, investors and shareholders are better served by the presentation of comparable period operating results generated from FFO primarily because it excludes the assumption that the value of real estate assets diminishes predictably. FFO does not represent cash flows from operating activities in accordance with GAAP, should not be considered an alternative to net income as an indication of our performance, and is not indicative of cash flow as a measure of liquidity or our ability to make cash distributions.
  • FFO as Adjusted: The Company provides disclosure of FFO as Adjusted because it believes it is a useful supplemental measure of its core operating performance that facilitates comparability of historical financial periods. FFO as Adjusted is calculated by making certain adjustments to FFO to account for items the Company does not believe are representative of ongoing core operating results, including non-comparable revenues and expenses. The Company’s method of calculating FFO as Adjusted may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
  • NOI: The Company uses NOI internally to make investment and capital allocation decisions and to compare the unlevered performance of our properties to our peers. The Company believes NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis, providing perspective not immediately apparent from net income. The Company calculates NOI using net income as defined by GAAP reflecting only those income and expense items that are incurred at the property level, adjusted for non-cash rental income and expense, and income or expenses that we do not believe are representative of ongoing operating results, if any. In addition, the Company uses NOI margin, calculated as NOI divided by total revenue, which the Company believes is useful to investors for similar reasons. The Company has historically defined this metric as “Cash NOI.” There have been no changes to the calculation of this metric. However, the Company has decided to refer to this metric as “NOI” instead of “Cash NOI” to further clarify that, consistent with the definition of this metric, the revenue and expenses reflected in this metric include some accrued amounts and are not limited to amounts for which the Company actually received or made cash payment during the applicable period.
  • Same-property NOI: The Company provides disclosure of NOI on a same-property basis, which includes the results of properties that were owned and operated for the entirety of the reporting periods being compared, which total 71 properties for the three months ended March 31, 2021 and 2020. Information provided on a same-property basis excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area (“GLA”) is taken out of service and also excludes properties acquired or sold during the periods being compared. As such, same-property NOI assists in eliminating disparities in net income due to the development, redevelopment, acquisition or disposition of properties during the periods presented, and thus provides a more consistent performance measure for the comparison of the operating performance of the Company’s properties. While there is judgment surrounding changes in designations, a property is removed from the same-property pool when it is designated as a redevelopment property because it is undergoing significant renovation or retenanting pursuant to a formal plan that is expected to have a significant impact on its operating income. A development or redevelopment property is moved back to the same-property pool once a substantial portion of the NOI growth expected from the development or redevelopment is reflected in both the current and comparable prior year period, generally one year after at least 80% of the expected NOI from the project is realized on a cash basis. Acquisitions are moved into the same-property pool once we have owned the property for the entirety of the comparable periods and the property is not under significant development or redevelopment. The Company has also provided disclosure of NOI on a same-property basis adjusted to include redevelopment properties. Same-property NOI may include other adjustments as detailed in the Reconciliation of Net Income to NOI and same-property NOI included in the tables accompanying this press release. The Company has historically defined this metric as “same-property Cash NOI.” There have been no changes to the calculation of this metric. The Company has decided to refer to this metric as “same-property NOI” for the same reasons discussed above under “NOI,” which we had historically defined as “Cash NOI.”
  • EBITDAre and Adjusted EBITDAre: EBITDAre and Adjusted EBITDAre are supplemental, non-GAAP measures utilized by us in various financial ratios. The White Paper on EBITDAre, approved by Nareit’s Board of Governors in September 2017, defines EBITDAre as net income (computed in accordance with GAAP), adjusted for interest expense, income tax expense, depreciation and amortization, losses and gains on the disposition of depreciated property, impairment write-downs of depreciated property and investments in unconsolidated joint ventures, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated joint ventures. EBITDAre and Adjusted EBITDAre are presented to assist investors in the evaluation of REITs, as a measure of the Company’s operational performance as they exclude various items that do not relate to or are not indicative of our operating performance and because they approximate key performance measures in our debt covenants. Accordingly, the Company believes that the use of EBITDAre and Adjusted EBITDAre, as opposed to income before income taxes, in various ratios provides meaningful performance measures related to the Company’s ability to meet various coverage tests for the stated periods. Adjusted EBITDAre may include other adjustments not indicative of operating results as detailed in the Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre included in the tables accompanying this press release. The Company also presents the ratio of net debt (net of cash) to annualized Adjusted EBITDAre as of March 31, 2021, and net debt (net of cash) to total market capitalization, which it believes is useful to investors as a supplemental measure in evaluating the Company’s balance sheet leverage. The presentation of EBITDAre and Adjusted EBITDAre is consistent with EBITDA and Adjusted EBITDA as presented in prior periods.

The Company believes net income is the most directly comparable GAAP financial measure to the non-GAAP performance measures outlined above. Reconciliations of these measures to net income have been provided in the tables accompanying this press release.

Operating Metrics

The Company presents certain operating metrics related to our properties, including occupancy, leasing activity and rental rates. Operating metrics are used by the Company and are useful to investors in facilitating an understanding of the operational performance for our properties.

Occupancy metrics represent the percentage of occupied gross leasable area based on executed leases (including properties in development and redevelopment) and include leases signed, but for which rent has not yet commenced. Same-property portfolio occupancy includes properties that have been owned and operated for the entirety of the reporting periods being compared, which total 71 properties for the three months ended March 31, 2021 and 2020. Occupancy metrics presented for the Company’s same-property portfolio excludes properties under development, redevelopment or that involve anchor repositioning where a substantial portion of the gross leasable area is taken out of service and also excludes properties acquired within the past 12 months or properties sold during the periods being compared.

Executed new leases, renewals and exercised options are presented on a same-space basis. Same-space leases represent those leases signed on spaces for which there was a previous lease.

ADDITIONAL INFORMATION

For a copy of the Company’s supplemental disclosure package, please access the “Investors” section of our website at www.uedge.com. Our website also includes other financial information, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports.

ABOUT URBAN EDGE

Urban Edge Properties is a NYSE listed real estate investment trust focused on managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the New York metropolitan region. Urban Edge owns 77 properties totaling 16.2 million square feet of gross leasable area.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this Press Release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our actual future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,” “may” or other similar expressions in this Press Release. Many of the factors that will determine the outcome of forward-looking statements are beyond our ability to control or predict and include, among others: (i) the economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic, including (a) the effectiveness or lack of effectiveness of governmental relief in providing assistance individuals adversely impacted by the COVID-19 pandemic, and to large and small businesses, particularly our retail tenants, that have suffered significant declines in revenues as a result of mandatory business shut-downs, “shelter-in-place” or “stay-at-home” orders and social distancing practices, (b) the duration of any such orders or other formal recommendations for social distancing, and the speed and extent to which revenues of our retail tenants recover following the lifting of any such orders or recommendations, (c) the potential impact of any such events on the obligations of the Company’s tenants to make rent and other payments or honor other commitments under existing leases, (d) the potential adverse impact on returns from redevelopment projects, and (e) the broader impact of the severe economic contraction and increase in unemployment that has occurred in the short term, and negative consequences that will occur if these trends are not quickly reversed; (ii) the loss or bankruptcy of major tenants, particularly in light of the adverse impact to the financial health of many retailers that has occurred and continues to occur as a result of the COVID-19 pandemic; (iii) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration, the Company’s ability to re-lease its properties on the same or better terms, or at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant, particularly, in light of the adverse impact to the financial health of many retailers that has occurred and continues to occur as a result of the COVID-19 pandemic and the significant uncertainty as to when and under which conditions potential tenants will be able to operate physical retail locations in the future; (iv) the impact of e-commerce on our tenants’ business; (v) macroeconomic conditions, such as a disruption of, or lack of access to the capital markets, as well as the recent significant decline in the Company’s share price from prices prior to the spread of the COVID-19 pandemic; (vi) the Company’s success in implementing its business strategy and its ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions and investments; (vii) changes in general economic conditions or economic conditions in the markets in which the Company competes, and their effect on the Company’s revenues, earnings and funding sources, and on those of its tenants; (viii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors, including the potential phasing out of LIBOR after 2021; (ix) the Company’s ability to pay down, refinance, restructure or extend its indebtedness as it becomes due and potential limitations on the Company’s ability to borrow funds under its existing credit facility as a result of covenants relating to the Company’s financial results; (x) potentially higher costs associated with the Company’s development, redevelopment and anchor repositioning projects, and the Company’s ability to lease the properties at projected rates; (xi) the Company’s liability for environmental matters; (xii) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (xiii) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; (xiv) information technology security breaches; and (xv) the loss of key executives. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Risk Factors” in Part I, Item 1A, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and the other documents filed by the Company with the Securities and Exchange Commission.

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Press Release. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this Press Release.

URBAN EDGE PROPERTIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

 

March 31,

 

December 31,

 

2021

 

2020

ASSETS

 

 

 

Real estate, at cost:

 

 

 

Land

$

563,346

 

 

$

568,662

 

Buildings and improvements

2,331,880

 

 

2,326,450

 

Construction in progress

40,629

 

 

44,689

 

Furniture, fixtures and equipment

7,118

 

 

7,016

 

Total

2,942,973

 

 

2,946,817

 

Accumulated depreciation and amortization

(741,874

)

 

(730,366

)

Real estate, net

2,201,099

 

 

2,216,451

 

Right-of-use assets

79,185

 

 

80,997

 

Cash and cash equivalents

324,508

 

 

384,572

 

Restricted cash

52,412

 

 

34,681

 

Tenant and other receivables

16,549

 

 

15,673

 

Receivable arising from the straight-lining of rents

60,980

 

 

62,106

 

Identified intangible assets, net of accumulated amortization of $33,980 and $37,009, respectively

53,714

 

 

56,184

 

Deferred leasing costs, net of accumulated amortization of $16,494 and $16,419, respectively

18,237

 

 

18,585

 

Prepaid expenses and other assets

70,198

 

 

70,311

 

Total assets

$

2,876,882

 

 

$

2,939,560

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Liabilities:

 

 

 

Mortgages payable, net

$

1,584,978

 

 

$

1,587,532

 

Lease liabilities

73,327

 

 

74,972

 

Accounts payable, accrued expenses and other liabilities

71,745

 

 

132,980

 

Identified intangible liabilities, net of accumulated amortization of $73,898 and $71,375, respectively

145,462

 

 

148,183

 

Total liabilities

1,875,512

 

 

1,943,667

 

Commitments and contingencies

 

 

 

Shareholders’ equity:

 

 

 

Common shares: $0.01 par value; 500,000,000 shares authorized and 117,026,289 and 117,014,317 shares issued and outstanding, respectively

1,170

 

 

1,169

 

Additional paid-in capital

987,518

 

 

989,863

 

Accumulated deficit

(37,145

)

 

(39,467

)

Noncontrolling interests:

 

 

 

Operating partnership

43,523

 

 

38,456

 

Consolidated subsidiaries

6,304

 

 

5,872

 

Total equity

1,001,370

 

 

995,893

 

Total liabilities and equity

$

2,876,882

 

 

$

2,939,560

 

URBAN EDGE PROPERTIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share amounts)

 

Quarter Ended March 31,

 

2021

 

2020

REVENUE

 

 

 

Rental revenue

$

94,619

 

 

$

93,000

 

Management and development fees

365

 

 

314

 

Other income

677

 

 

46

 

Total revenue

95,661

 

 

93,360

 

EXPENSES

 

 

 

Depreciation and amortization

22,875

 

 

23,471

 

Real estate taxes

16,601

 

 

14,966

 

Property operating

20,291

 

 

14,537

 

General and administrative

8,668

 

 

9,847

 

Lease expense

3,306

 

 

3,434

 

Total expenses

71,741

 

 

66,255

 

Gain on sale of real estate

11,722

 

 

39,775

 

Interest income

136

 

 

1,683

 

Interest and debt expense

(14,827

)

 

(17,175

)

Income before income taxes

20,951

 

 

51,388

 

Income tax expense

(235

)

 

(100

)

Net income

20,716

 

 

51,288

 

Less net (income) loss attributable to noncontrolling interests in:

 

 

 

Operating partnership

(875

)

 

(2,308

)

Consolidated subsidiaries

79

 

 

 

Net income attributable to common shareholders

$

19,920

 

 

$

48,980

 

 

 

 

 

Earnings per common share – Basic:

$

0.17

 

 

$

0.40

 

Earnings per common share – Diluted:

$

0.17

 

 

$

0.40

 

Weighted average shares outstanding – Basic

116,956

 

 

120,966

 

Weighted average shares outstanding – Diluted

117,024

 

 

121,051

 

Reconciliation of Net Income to FFO and FFO as Adjusted

The following table reflects the reconciliation of net income to FFO and FFO as Adjusted for the quarters ended March 31, 2021 and 2020, respectively. Net income is considered the most directly comparable GAAP measure. Refer to “Non-GAAP Financial Measures” on page 3 for a description of FFO and FFO as Adjusted.

 

Quarter Ended March 31,

 

2021

 

2020

Net income

$

20,716

 

 

$

51,288

 

Less net (income) loss attributable to noncontrolling interests in:

 

 

 

Operating partnership

 

(875

)

 

 

(2,308

)

Consolidated subsidiaries

 

79

 

 

 

 

Net income attributable to common shareholders

 

19,920

 

 

 

48,980

 

Adjustments:

 

 

 

Rental property depreciation and amortization

 

22,686

 

 

 

23,281

 

Gain on sale of real estate

 

(11,722

)

 

 

(39,775

)

Limited partnership interests in operating partnership

 

875

 

 

 

2,308

 

FFO Applicable to diluted common shareholders

 

31,759

 

 

 

34,794

 

FFO per diluted common share(1)

 

0.26

 

 

 

0.27

 

Adjustments to FFO:

 

 

 

Write-off of receivables arising from the straight-lining of rents

 

873

 

 

 

 

Transaction, severance and other expenses (income)

 

(377

)

 

 

126

 

FFO as Adjusted applicable to diluted common shareholders

$

32,255

 

 

$

34,920

 

FFO as Adjusted per diluted common share(1)

$

0.26

 

 

$

0.28

 

 

 

 

 

Weighted Average diluted common shares(1)

 

122,166

 

 

 

126,756

 

(1)

 

Weighted average diluted shares used to calculate FFO per share and FFO as Adjusted per share for the quarter ended March 31, 2021 and March 31, 2020, respectively are higher than the GAAP weighted average diluted shares as a result of the dilutive impact of LTIP and OP units which may be redeemed for our common shares.

Reconciliation of Net Income to NOI and Same-Property NOI

The following table reflects the reconciliation of net income to NOI, same-property NOI and same-property NOI including properties in redevelopment for the quarters ended March 31, 2021 and 2020, respectively. Net income is considered the most directly comparable GAAP measure. Refer to “Non-GAAP Financial Measures” on page 3 for a description of NOI and same-property NOI.

 

Quarter Ended March 31,

(Amounts in thousands)

2021

 

2020

Net income

$

20,716

 

 

$

51,288

 

Management and development fee income from non-owned properties

 

(365

)

 

 

(314

)

Other (income) expense

 

(246

)

 

 

255

 

Depreciation and amortization

 

22,875

 

 

 

23,471

 

General and administrative expense

 

8,668

 

 

 

9,847

 

Gain on sale of real estate

 

(11,722

)

 

 

(39,775

)

Interest income

 

(136

)

 

 

(1,683

)

Interest and debt expense

 

14,827

 

 

 

17,175

 

Income tax expense

 

235

 

 

 

100

 

Non-cash revenue and expenses

 

(1,273

)

 

 

(2,695

)

NOI(1)

 

53,579

 

 

 

57,669

 

Adjustments:

 

 

 

Non-same property NOI(2)

 

(1,801

)

 

 

(3,540

)

Tenant bankruptcy settlement income and lease termination income

 

(475

)

 

 

(3

)

Same-property NOI

$

51,303

 

 

$

54,126

 

NOI related to properties being redeveloped

 

869

 

 

 

1,278

 

Same-property NOI including properties in redevelopment

$

52,172

 

 

$

55,404

 

(1)

 

The Company has historically defined this metric as “Cash NOI.” There have been no changes to the calculation.

(2)

 

Non-same property NOI includes NOI related to properties being redeveloped and properties acquired or disposed in the period.

Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre

The following table reflects the reconciliation of net income to EBITDAre and Adjusted EBITDAre for the quarters ended March 31, 2021 and 2020, respectively. Net income is considered the most directly comparable GAAP measure. Refer to “Non-GAAP Financial Measures” on page 3 for a description of EBITDAre and Adjusted EBITDAre.

 

Quarter Ended March 31,

(Amounts in thousands)

2021

 

2020

Net income

$

20,716

 

 

$

51,288

 

Depreciation and amortization

 

22,875

 

 

 

23,471

 

Interest and debt expense

 

14,827

 

 

 

17,175

 

Income tax expense

 

235

 

 

 

100

 

Gain on sale of real estate

 

(11,722

)

 

 

(39,775

)

EBITDAre

 

46,931

 

 

 

52,259

 

Adjustments for Adjusted EBITDAre:

 

 

 

Write-off of receivable arising from the straight-lining of rents

 

873

 

 

 

 

Transaction, severance and other expenses (income)

 

(377

)

 

 

126

 

Adjusted EBITDAre

$

47,427

 

 

$

52,385

 

 

Contacts

Mark Langer, EVP and Chief Financial Officer

(212) 956-0082