Maryland | 04-2458042 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
321 Railroad Avenue,GreenwichCT | 06830 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $.01 per share | UBP | New York Stock Exchange | ||
Class A Common Stock, par value $.01 per share | UBA | New York Stock Exchange | ||
6.25% Series H Cumulative Preferred Stock | UBPPRH | New York Stock Exchange | ||
5.875% Series K Cumulative Preferred Stock | UBPPRK | New York Stock Exchange | ||
Common Stock Rights to Purchase Preferred Shares | N/A | New York Stock Exchange | ||
Class A Common Stock Rights to Purchase Preferred Shares | N/A | New York Stock Exchange |
Large accelerated filer ☐ | Accelerated filer☒ |
Non-accelerated filer ☐ | Smaller reporting company ☐ |
Emerging growth company ☐ | |
April 30, 2020 | October 31, 2019 | April 30, 2021 | October 31, 2020 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Assets | ||||||||||||||||
Real Estate Investments: | ||||||||||||||||
Real Estate– at cost | $ | 1,149,653 | $ | 1,141,770 | $ | 1,150,941 | $ | 1,149,182 | ||||||||
Less: Accumulated depreciation | (251,983 | ) | (241,154 | ) | (270,057 | ) | (261,325 | ) | ||||||||
897,670 | 900,616 | 880,884 | 887,857 | |||||||||||||
Investments in and advances to unconsolidated joint ventures | 28,254 | 29,374 | 29,247 | 28,679 | ||||||||||||
925,924 | 929,990 | 910,131 | 916,536 | |||||||||||||
Cash and cash equivalents | 33,868 | 94,079 | 38,446 | 40,795 | ||||||||||||
Marketable Securities | 7,092 | - | ||||||||||||||
Tenant receivables | 24,300 | 22,854 | ||||||||||||||
Tenant receivables-net | 23,137 | 25,954 | ||||||||||||||
Prepaid expenses and other assets | 18,433 | 15,513 | 21,171 | 18,263 | ||||||||||||
Deferred charges, net of accumulated amortization | 9,280 | 9,868 | 8,848 | 8,631 | ||||||||||||
Total Assets | $ | 1,018,897 | $ | 1,072,304 | $ | 1,001,733 | $ | 1,010,179 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Liabilities: | ||||||||||||||||
Revolving credit line | $ | 35,000 | $ | - | $ | 35,000 | $ | 35,000 | ||||||||
Mortgage notes payable and other loans | 303,253 | 306,606 | 295,773 | 299,434 | ||||||||||||
Preferred stock called for redemption | - | 75,000 | ||||||||||||||
Accounts payable and accrued expenses | 22,003 | 11,416 | 14,247 | 18,033 | ||||||||||||
Deferred compensation – officers | 25 | 53 | 41 | 20 | ||||||||||||
Other liabilities | 21,570 | 21,629 | 22,564 | 24,550 | ||||||||||||
Total Liabilities | 381,851 | 414,704 | 367,625 | 377,037 | ||||||||||||
Redeemable Noncontrolling Interests | 66,257 | 77,876 | 66,081 | 62,071 | ||||||||||||
Commitments and Contingencies | 0 | 0 | ||||||||||||||
Stockholders’ Equity: | ||||||||||||||||
6.25% Series H Cumulative Preferred Stock (liquidation preference of $25 per share); 4,600,000 shares issued and outstanding | 115,000 | 115,000 | 115,000 | 115,000 | ||||||||||||
5.875% Series K Cumulative Preferred Stock (liquidation preference of $25 per share); 4,400,000 shares issued and outstanding | 110,000 | 110,000 | 110,000 | 110,000 | ||||||||||||
Excess Stock, par value $0.01 per share; 20,000,000 shares authorized; none issued and outstanding | - | - | ||||||||||||||
Common Stock, par value $0.01 per share; 30,000,000 shares authorized; 10,071,981 and 9,963,751 shares issued and outstanding | 102 | 101 | ||||||||||||||
Class A Common Stock, par value $0.01 per share; 100,000,000 shares authorized; 29,994,064 and 29,893,241 shares issued and outstanding | 300 | 299 | ||||||||||||||
Excess Stock, par value $0.01 per share; 20,000,000 shares authorized; NaN issued and outstanding | 0 | 0 | ||||||||||||||
Common Stock, par value $0.01 per share; 30,000,000 shares authorized; 10,181,005 and 10,073,652 shares issued and outstanding | 103 | 102 | ||||||||||||||
Class A Common Stock, par value $0.01 per share; 100,000,000 shares authorized; 30,100,790 and 29,996,305 shares issued and outstanding | 301 | 300 | ||||||||||||||
Additional paid in capital | 524,050 | 520,988 | 527,695 | 526,027 | ||||||||||||
Cumulative distributions in excess of net income | (161,165 | ) | (158,213 | ) | (175,099 | ) | (164,651 | ) | ||||||||
Accumulated other comprehensive loss | (17,498 | ) | (8,451 | ) | (9,973 | ) | (15,707 | ) | ||||||||
Total Stockholders' Equity | 570,789 | 579,724 | 568,027 | 571,071 | ||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,018,897 | $ | 1,072,304 | $ | 1,001,733 | $ | 1,010,179 |
Six Months Ended April 30, | Three Months Ended April 30, | Six Months Ended April 30, | Three Months Ended April 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Lease income | $ | 63,148 | $ | 66,610 | $ | 30,203 | $ | 33,349 | $ | 64,278 | $ | 63,148 | $ | 31,795 | $ | 30,203 | ||||||||||||||||
Lease termination | 348 | 17 | 139 | - | 705 | 348 | 0 | 139 | ||||||||||||||||||||||||
Other | 2,132 | 1,745 | 938 | 756 | 2,220 | 2,132 | 1,131 | 938 | ||||||||||||||||||||||||
Total Revenues | 65,628 | 68,372 | 31,280 | 34,105 | 67,203 | 65,628 | 32,926 | 31,280 | ||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||
Property operating | 10,730 | 11,835 | 4,801 | 5,905 | 12,449 | 10,730 | 6,135 | 4,801 | ||||||||||||||||||||||||
Property taxes | 11,718 | 11,718 | 5,908 | 5,805 | 11,776 | 11,718 | 5,915 | 5,908 | ||||||||||||||||||||||||
Depreciation and amortization | 14,283 | 13,925 | 7,148 | 6,985 | 14,710 | 14,283 | 7,192 | 7,148 | ||||||||||||||||||||||||
General and administrative | 6,384 | 4,919 | 3,607 | 2,265 | 4,737 | 6,384 | 2,093 | 3,607 | ||||||||||||||||||||||||
Directors' fees and expenses | 193 | 192 | 88 | 84 | 198 | 193 | 89 | 88 | ||||||||||||||||||||||||
Total Operating Expenses | 43,308 | 42,589 | 21,552 | 21,044 | 43,870 | 43,308 | 21,424 | 21,552 | ||||||||||||||||||||||||
Operating Income | 22,320 | 25,783 | 9,728 | 13,061 | 23,333 | 22,320 | 11,502 | 9,728 | ||||||||||||||||||||||||
Non-Operating Income (Expense): | ||||||||||||||||||||||||||||||||
Interest expense | (6,648 | ) | (7,110 | ) | (3,309 | ) | (3,532 | ) | (6,733 | ) | (6,648 | ) | (3,341 | ) | (3,309 | ) | ||||||||||||||||
Equity in net income from unconsolidated joint ventures | 976 | 718 | 463 | 376 | 660 | 976 | 310 | 463 | ||||||||||||||||||||||||
Unrealized holding gains arising during the periods | 109 | - | 109 | - | 0 | 109 | 0 | 109 | ||||||||||||||||||||||||
Gain on sale of marketable securities | - | 403 | - | - | ||||||||||||||||||||||||||||
Gain (loss) on sale of property | (328 | ) | - | 11 | - | 406 | (328 | ) | 434 | 11 | ||||||||||||||||||||||
Interest, dividends and other investment income | 332 | 184 | 238 | 55 | 96 | 332 | 53 | 238 | ||||||||||||||||||||||||
Net Income | 16,761 | 19,978 | 7,240 | 9,960 | 17,762 | 16,761 | 8,958 | 7,240 | ||||||||||||||||||||||||
Noncontrolling interests: | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (2,066 | ) | (2,201 | ) | (1,028 | ) | (1,100 | ) | (1,837 | ) | (2,066 | ) | (925 | ) | (1,028 | ) | ||||||||||||||||
Net income attributable to Urstadt Biddle Properties Inc. | 14,695 | 17,777 | 6,212 | 8,860 | 15,925 | 14,695 | 8,033 | 6,212 | ||||||||||||||||||||||||
Preferred stock dividends | (6,825 | ) | (6,125 | ) | (3,413 | ) | (3,062 | ) | (6,825 | ) | (6,825 | ) | (3,412 | ) | (3,413 | ) | ||||||||||||||||
Net Income Applicable to Common and Class A Common Stockholders | $ | 7,870 | $ | 11,652 | $ | 2,799 | $ | 5,798 | $ | 9,100 | $ | 7,870 | $ | 4,621 | $ | 2,799 | ||||||||||||||||
Basic Earnings Per Share: | ||||||||||||||||||||||||||||||||
Per Common Share: | $ | 0.19 | $ | 0.28 | $ | 0.07 | $ | 0.14 | $ | 0.21 | $ | 0.19 | $ | 0.11 | $ | 0.07 | ||||||||||||||||
Per Class A Common Share: | $ | 0.21 | $ | 0.31 | $ | 0.07 | $ | 0.16 | $ | 0.24 | $ | 0.21 | $ | 0.12 | $ | 0.07 | ||||||||||||||||
Diluted Earnings Per Share: | ||||||||||||||||||||||||||||||||
Per Common Share: | $ | 0.18 | $ | 0.27 | $ | 0.07 | $ | 0.14 | $ | 0.21 | $ | 0.18 | $ | 0.11 | $ | 0.07 | ||||||||||||||||
Per Class A Common Share: | $ | 0.21 | $ | 0.31 | $ | 0.07 | $ | 0.15 | $ | 0.24 | $ | 0.21 | $ | 0.12 | $ | 0.07 | ||||||||||||||||
Dividends Per Share: | ||||||||||||||||||||||||||||||||
Common | $ | 0.50 | $ | 0.49 | $ | 0.25 | $ | 0.245 | $ | 0.25 | $ | 0.50 | $ | 0.125 | $ | 0.25 | ||||||||||||||||
Class A Common | $ | 0.56 | $ | 0.55 | $ | 0.28 | $ | 0.275 | $ | 0.28 | $ | 0.56 | $ | 0.14 | $ | 0.28 |
Six Months Ended April 30, | Three Months Ended April 30, | Six Months Ended April 30, | Three Months Ended April 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Net Income | $ | 16,761 | $ | 19,978 | $ | 7,240 | $ | 9,960 | $ | 17,762 | $ | 16,761 | $ | 8,958 | $ | 7,240 | ||||||||||||||||
Other comprehensive loss: | ||||||||||||||||||||||||||||||||
Change in unrealized losses on interest rate swaps | (8,101 | ) | (6,308 | ) | (7,172 | ) | (1,588 | ) | 5,006 | (8,101 | ) | 3,507 | (7,172 | ) | ||||||||||||||||||
Change in unrealized losses on interest rate swaps-equity investees | (946 | ) | (790 | ) | (864 | ) | (174 | ) | 728 | (946 | ) | 470 | (864 | ) | ||||||||||||||||||
Total comprehensive income (loss) | 7,714 | 12,880 | (796 | ) | 8,198 | 23,496 | 7,714 | 12,935 | (796 | ) | ||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | (2,066 | ) | (2,201 | ) | (1,028 | ) | (1,100 | ) | ||||||||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interests | (1,837 | ) | (2,066 | ) | (925 | ) | (1,028 | ) | ||||||||||||||||||||||||
Total comprehensive income (loss) attributable to Urstadt Biddle Properties Inc. | 5,648 | 10,679 | (1,824 | ) | 7,098 | 21,659 | 5,648 | 12,010 | (1,824 | ) | ||||||||||||||||||||||
Preferred stock dividends | (6,825 | ) | (6,125 | ) | (3,413 | ) | (3,062 | ) | (6,825 | ) | (6,825 | ) | (3,412 | ) | (3,413 | ) | ||||||||||||||||
Total comprehensive income (loss) applicable to Common and Class A Common Stockholders | $ | (1,177 | ) | $ | 4,554 | $ | (5,237 | ) | $ | 4,036 | $ | 14,834 | $ | (1,177 | ) | $ | 8,598 | $ | (5,237 | ) |
Six Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income | $ | 16,761 | $ | 19,978 | $ | 17,762 | $ | 16,761 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 14,283 | 13,925 | 14,710 | 14,283 | ||||||||||||
Straight-line rent adjustment | (550 | ) | (600 | ) | 2,331 | (550 | ) | |||||||||
Provision for tenant credit losses | 1,845 | 496 | 3,271 | 1,845 | ||||||||||||
Unrealized holding gain arising during the periods | (109 | ) | - | |||||||||||||
(Gain) on sale of marketable securities | - | (403 | ) | |||||||||||||
Loss on sale of property | 328 | - | ||||||||||||||
Unrealized holding gains arising during the periods | 0 | (109 | ) | |||||||||||||
(Gain)/loss on sale of property | (406 | ) | 328 | |||||||||||||
Restricted stock compensation expense and other adjustments | 3,515 | 2,111 | 1,932 | 3,515 | ||||||||||||
Deferred compensation arrangement | (27 | ) | (32 | ) | 21 | (27 | ) | |||||||||
Equity in net (income) of unconsolidated joint ventures | (976 | ) | (718 | ) | (660 | ) | (976 | ) | ||||||||
Distributions of operating income from unconsolidated joint ventures | 976 | 718 | 660 | 976 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Tenant receivables | (2,753 | ) | (334 | ) | (2,786 | ) | (2,753 | ) | ||||||||
Accounts payable and accrued expenses | 1,909 | (975 | ) | 1,221 | 1,909 | |||||||||||
Other assets and other liabilities, net | (4,500 | ) | (918 | ) | (3,439 | ) | (4,500 | ) | ||||||||
Net Cash Flow Provided by Operating Activities | 30,702 | 33,248 | 34,617 | 30,702 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Acquisitions of real estate investments | - | (11,755 | ) | |||||||||||||
Investments in and advances to unconsolidated joint ventures | - | (578 | ) | |||||||||||||
Deposits on acquisition of real estate investment | (1,030 | ) | - | 0 | (1,030 | ) | ||||||||||
Return of deposits on acquisition of real estate investment | 530 | - | 0 | 530 | ||||||||||||
Purchase of available for sale securities | (6,983 | ) | - | 0 | (6,983 | ) | ||||||||||
Proceeds from the sale of available for sale securities | - | 5,970 | ||||||||||||||
Proceeds from sale of property | 3,732 | - | 4,035 | 3,732 | ||||||||||||
Improvements to properties and deferred charges | (11,728 | ) | (9,629 | ) | (11,621 | ) | (11,728 | ) | ||||||||
Investment in note receivable | (1,621 | ) | 0 | |||||||||||||
Return of capital from unconsolidated joint ventures | 202 | 5,984 | 104 | 202 | ||||||||||||
Net Cash Flow (Used in) Investing Activities | (15,277 | ) | (10,008 | ) | (9,103 | ) | (15,277 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Dividends paid -- Common and Class A Common Stock | (21,831 | ) | (21,303 | ) | (10,973 | ) | (21,831 | ) | ||||||||
Dividends paid -- Preferred Stock | (7,364 | ) | (6,125 | ) | (6,825 | ) | (7,364 | ) | ||||||||
Principal amortization repayments on mortgage notes payable | (3,315 | ) | (3,137 | ) | (3,400 | ) | (3,315 | ) | ||||||||
Proceeds from mortgage note payable and other loans | - | 35,000 | ||||||||||||||
Repayment of mortgage note payable and other loans | - | (23,925 | ) | |||||||||||||
Repayment of revolving credit line borrowings | - | (23,750 | ) | |||||||||||||
Proceeds from revolving credit line borrowings | 35,000 | 21,500 | 0 | 35,000 | ||||||||||||
Acquisitions of noncontrolling interests | (609 | ) | (630 | ) | (4,566 | ) | (609 | ) | ||||||||
Distributions to noncontrolling interests | (2,066 | ) | (2,201 | ) | (1,837 | ) | (2,066 | ) | ||||||||
Payment of taxes on shares withheld for employee taxes | (573 | ) | (270 | ) | (320 | ) | (573 | ) | ||||||||
Redemption of preferred stock | (75,000 | ) | - | 0 | (75,000 | ) | ||||||||||
Net proceeds from the issuance of Common and Class A Common Stock | 122 | 98 | 58 | 122 | ||||||||||||
Net Cash Flow (Used in) Financing Activities | (75,636 | ) | (24,743 | ) | (27,863 | ) | (75,636 | ) | ||||||||
Net Increase/(Decrease) In Cash and Cash Equivalents | (60,211 | ) | (1,503 | ) | (2,349 | ) | (60,211 | ) | ||||||||
Cash and Cash Equivalents at Beginning of Period | 94,079 | 10,285 | 40,795 | 94,079 | ||||||||||||
Cash and Cash Equivalents at End of Period | $ | 33,868 | $ | 8,782 | $ | 38,446 | $ | 33,868 | ||||||||
Supplemental Cash Flow Disclosures: | ||||||||||||||||
Interest Paid | $ | 6,567 | $ | 6,958 | $ | 6,669 | $ | 6,567 |
Series H Preferred Stock Issued | Series H Preferred Stock Amount | Series K Preferred Stock Issued | Series K Preferred Stock Amount | Common Stock Issued | Common Stock Amount | Class A Common Stock Issued | Class A Common Stock Amount | Additional Paid In Capital | Cumulative Distributions In Excess of Net Income | Accumulated Other Comprehensive Income (loss) | Total Stockholders’ Equity | Series H Preferred Stock Issued | Series H Preferred Stock Amount | Series K Preferred Stock Issued | Series K Preferred Stock Amount | Common Stock Issued | Common Stock Amount | Class A Common Stock Issued | Class A Common Stock Amount | Additional Paid In Capital | Cumulative Distributions In Excess of Net Income | Accumulated Other Comprehensive Income (loss) | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances - October 31, 2019 | 4,600,000 | $ | 115,000 | 4,400,000 | $ | 110,000 | 9,963,751 | $ | 101 | 29,893,241 | $ | 299 | $ | 520,988 | $ | (158,213 | ) | $ | (8,451 | ) | $ | 579,724 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances - October 31, 2020 | 4,600,000 | $ | 115,000 | 4,400,000 | $ | 110,000 | 10,073,652 | $ | 102 | 29,996,305 | $ | 300 | $ | 526,027 | $ | (164,651 | ) | $ | (15,707 | ) | $ | 571,071 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income applicable to Common and Class A common stockholders | - | - | - | - | - | - | - | - | - | 7,870 | - | 7,870 | - | - | - | - | - | - | - | - | - | 9,100 | - | 9,100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized income on interest rate swap | - | - | - | - | - | - | - | - | - | - | (9,047 | ) | (9,047 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized losses on interest rate swap | - | - | - | - | - | - | - | - | - | - | 5,734 | 5,734 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid : | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock ($0.50 per share) | - | - | - | - | - | - | - | - | - | (5,035 | ) | - | (5,035 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A common stock ($0.56 per share) | - | - | - | - | - | - | - | - | - | (16,796 | ) | - | (16,796 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock ($0.25 per share) | - | - | - | - | - | - | - | - | - | (2,545 | ) | - | (2,545 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A common stock ($0.28 per share) | - | - | - | - | - | - | - | - | - | (8,428 | ) | - | (8,428 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares under dividend reinvestment plan | - | - | - | - | 2,780 | - | 3,896 | - | 105 | - | - | 105 | - | - | - | - | 1,503 | 0 | 2,334 | 0 | 58 | - | - | 58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under restricted stock plan | - | - | - | - | 105,450 | 1 | 120,800 | 1 | (2 | ) | - | - | - | - | - | - | - | 105,850 | 1 | 125,800 | 1 | (2 | ) | - | - | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | - | - | - | - | - | - | (23,873 | ) | - | (573 | ) | - | - | (573 | ) | - | - | - | - | - | - | (23,249 | ) | 0 | (319 | ) | - | - | (319 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (400 | ) | 0 | - | - | - | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock compensation and other adjustments | - | - | - | - | - | - | - | - | 3,532 | - | - | 3,532 | - | - | - | - | - | - | - | - | 1,931 | - | - | 1,931 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to redeemable noncontrolling interests | - | - | - | - | - | - | - | - | - | 11,009 | - | 11,009 | - | - | - | - | - | - | - | - | - | (8,575 | ) | - | (8,575 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances - April 30, 2020 | 4,600,000 | $ | 115,000 | 4,400,000 | $ | 110,000 | 10,071,981 | $ | 102 | 29,994,064 | $ | 300 | $ | 524,050 | $ | (161,165 | ) | $ | (17,498 | ) | $ | 570,789 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances - April 30, 2021 | 4,600,000 | $ | 115,000 | 4,400,000 | $ | 110,000 | 10,181,005 | $ | 103 | 30,100,790 | $ | 301 | $ | 527,695 | $ | (175,099 | ) | $ | (9,973 | ) | $ | 568,027 |
Series H Preferred Stock Issued | Series H Preferred Stock Amount | Series K Preferred Stock Issued | Series K Preferred Stock Amount | Common Stock Issued | Common Stock Amount | Class A Common Stock Issued | Class A Common Stock Amount | Additional Paid In Capital | Cumulative Distributions In Excess of Net Income | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||
Balances - October 31, 2019 | 4,600,000 | $ | 115,000 | 4,400,000 | $ | 110,000 | 9,963,751 | $ | 101 | 29,893,241 | $ | 299 | $ | 520,988 | $ | (158,213 | ) | $ | (8,451 | ) | $ | 579,724 | ||||||||||||||||||||||||||
Net income applicable to Common and Class A common stockholders | - | - | - | - | - | - | - | - | - | 7,870 | - | 7,870 | ||||||||||||||||||||||||||||||||||||
Change in unrealized losses on interest rate swap | - | - | - | - | - | - | - | - | - | - | (9,047 | ) | (9,047 | ) | ||||||||||||||||||||||||||||||||||
Cash dividends paid : | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock ($0.50 per share) | - | - | - | - | - | - | - | - | - | (5,035 | ) | - | (5,035 | ) | ||||||||||||||||||||||||||||||||||
Class A common stock ($0.560 per share) | - | - | - | - | - | - | - | - | - | (16,796 | ) | - | (16,796 | ) | ||||||||||||||||||||||||||||||||||
Issuance of shares under dividend reinvestment plan | - | - | - | - | 2,780 | 0 | 3,896 | 0 | 105 | - | - | 105 | ||||||||||||||||||||||||||||||||||||
Shares issued under restricted stock plan | - | - | - | - | 105,450 | 1 | 120,800 | 1 | (2 | ) | - | - | 0 | |||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | - | - | - | - | - | - | (23,873 | ) | 0 | (573 | ) | - | - | (573 | ) | |||||||||||||||||||||||||||||||||
Restricted stock compensation and other adjustments | - | - | - | - | - | - | - | - | 3,532 | - | - | 3,532 | ||||||||||||||||||||||||||||||||||||
Adjustments to redeemable noncontrolling interests | - | - | - | - | - | - | - | - | - | 11,009 | - | 11,009 | ||||||||||||||||||||||||||||||||||||
Balances - April 30, 2020 | 4,600,000 | $ | 115,000 | 4,400,000 | $ | 110,000 | 10,071,981 | $ | 102 | 29,994,064 | $ | 300 | $ | 524,050 | $ | (161,165 | ) | $ | (17,498 | ) | $ | 570,789 |
Series G Preferred Stock Issued | Series G Preferred Stock Amount | Series H Preferred Stock Issued | Series H Preferred Stock Amount | Common Stock Issued | Common Stock Amount | Class A Common Stock Issued | Class A Common Stock Amount | Additional Paid In Capital | Cumulative Distributions In Excess of Net Income | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||
Balances - October 31, 2018 | 3,000,000 | $ | 75,000 | 4,600,000 | $ | 115,000 | 9,822,006 | $ | 99 | 29,814,814 | $ | 298 | $ | 518,136 | $ | (133,858 | ) | $ | 7,466 | $ | 582,141 | |||||||||||||||||||||||||||
November 1, 2018 adoption of new accounting standard - See Note 1 | - | - | - | - | - | - | - | - | - | 569 | (569 | ) | - | |||||||||||||||||||||||||||||||||||
Net income applicable to Common and Class A common stockholders | - | - | - | - | - | - | - | - | - | 11,652 | - | 11,652 | ||||||||||||||||||||||||||||||||||||
Change in unrealized income on interest rate swap | - | - | - | - | - | - | - | - | - | - | (7,098 | ) | (7,098 | ) | ||||||||||||||||||||||||||||||||||
Cash dividends paid : | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock ($0.49 per share) | - | - | - | - | - | - | - | - | - | (4,880 | ) | - | (4,880 | ) | ||||||||||||||||||||||||||||||||||
Class A common stock ($0.55 per share) | - | - | - | - | - | - | - | - | - | (16,422 | ) | - | (16,422 | ) | ||||||||||||||||||||||||||||||||||
Issuance of shares under dividend reinvestment plan | - | - | - | - | 2,403 | - | 2,872 | - | 98 | - | - | 98 | ||||||||||||||||||||||||||||||||||||
Shares issued under restricted stock plan | - | - | - | - | 137,200 | 1 | 111,450 | 1 | (2 | ) | - | - | - | |||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | - | - | - | - | - | - | (14,290 | ) | - | (269 | ) | - | - | (269 | ) | |||||||||||||||||||||||||||||||||
Forfeiture of restricted stock | - | - | - | - | - | - | (13,700 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Restricted stock compensation and other adjustments | - | - | - | - | - | - | - | - | 2,111 | - | - | 2,111 | ||||||||||||||||||||||||||||||||||||
Adjustments to redeemable noncontrolling interests | - | - | - | - | - | - | - | - | - | (1,380 | ) | - | (1,380 | ) | ||||||||||||||||||||||||||||||||||
Balances - April 30, 2019 | 3,000,000 | $ | 75,000 | 4,600,000 | $ | 115,000 | 9,961,609 | $ | 100 | 29,901,146 | $ | 299 | $ | 520,074 | $ | (144,319 | ) | $ | (201 | ) | $ | 565,953 |
Series H Preferred Stock Issued | Series H Preferred Stock Amount | Series K Preferred Stock Issued | Series K Preferred Stock Amount | Common Stock Issued | Common Stock Amount | Class A Common Stock Issued | Class A Common Stock Amount | Additional Paid In Capital | Cumulative Distributions In Excess of Net Income | Accumulated Other Comprehensive Income (loss) | Total Stockholders’ Equity | Series H Preferred Stock Issued | Series H Preferred Stock Amount | Series K Preferred Stock Issued | Series K Preferred Stock Amount | Common Stock Issued | Common Stock Amount | Class A Common Stock Issued | Class A Common Stock Amount | Additional Paid In Capital | Cumulative Distributions In Excess of Net Income | Accumulated Other Comprehensive Income (loss) | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances - January 31, 2020 | 4,600,000 | $ | 115,000 | 4,400,000 | $ | 110,000 | 10,070,238 | $ | 102 | 29,991,496 | $ | 300 | $ | 521,516 | $ | (163,511 | ) | $ | (9,463 | ) | $ | 573,944 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances - January 31, 2021 | 4,600,000 | $ | 115,000 | 4,400,000 | $ | 110,000 | 10,180,308 | $ | 103 | 30,100,161 | $ | 301 | $ | 526,721 | $ | (170,543 | ) | $ | (13,950 | ) | $ | 567,632 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income applicable to Common and Class A common stockholders | - | - | - | - | - | - | - | - | - | 2,799 | - | 2,799 | - | - | - | - | - | - | - | - | - | 4,621 | - | 4,621 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized income on interest rate swap | - | - | - | - | - | - | - | - | - | - | (8,035 | ) | (8,035 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized losses on interest rate swap | - | - | - | - | - | - | - | - | - | - | 3,977 | 3,977 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid : | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock ($0.25 per share) | - | - | - | - | - | - | - | - | - | (2,518 | ) | - | (2,518 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A common stock ($0.28 per share) | - | - | - | - | - | - | - | - | - | (8,398 | ) | - | (8,398 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock ($0.125 per share) | - | - | - | - | - | - | - | - | - | (1,273 | ) | - | (1,273 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A common stock ($0.14 per share) | - | - | - | - | - | - | - | - | - | (4,214 | ) | - | (4,214 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares under dividend reinvestment plan | - | - | - | - | 1,743 | - | 2,568 | - | 53 | - | - | 53 | - | - | - | - | 697 | 0 | 1,029 | 0 | 29 | - | - | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (400 | ) | 0 | - | - | - | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock compensation and other adjustments | - | - | - | - | - | - | - | - | 2,481 | - | - | 2,481 | - | - | - | - | - | - | - | - | 945 | - | - | 945 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to redeemable noncontrolling interests | - | - | - | - | - | - | - | - | - | 10,463 | - | 10,463 | - | - | - | - | - | - | - | - | - | (3,690 | ) | - | (3,690 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances - April 30, 2020 | 4,600,000 | $ | 115,000 | 4,400,000 | $ | 110,000 | 10,071,981 | $ | 102 | 29,994,064 | $ | 300 | $ | 524,050 | $ | (161,165 | ) | $ | (17,498 | ) | $ | 570,789 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances - April 30, 2021 | 4,600,000 | $ | 115,000 | 4,400,000 | $ | 110,000 | 10,181,005 | $ | 103 | 30,100,790 | $ | 301 | $ | 527,695 | $ | (175,099 | ) | $ | (9,973 | ) | $ | 568,027 |
Series G Preferred Stock Issued | Series G Preferred Stock Amount | Series H Preferred Stock Issued | Series H Preferred Stock Amount | Common Stock Issued | Common Stock Amount | Class A Common Stock Issued | Class A Common Stock Amount | Additional Paid In Capital | Cumulative Distributions In Excess of Net Income | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||
Balances - January 31, 2020 | 4,600,000 | $ | 115,000 | 4,400,000 | $ | 110,000 | 10,070,238 | $ | 102 | 29,991,496 | $ | 300 | $ | 521,516 | $ | (163,511 | ) | $ | (9,463 | ) | $ | 573,944 | ||||||||||||||||||||||||||
Net income applicable to Common and Class A common stockholders | - | - | - | - | - | - | - | - | - | 2,799 | - | 2,799 | ||||||||||||||||||||||||||||||||||||
Change in unrealized losses on interest rate swap | - | - | - | - | - | - | - | - | - | - | (8,035 | ) | (8,035 | ) | ||||||||||||||||||||||||||||||||||
Cash dividends paid : | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock ($0.25 per share) | - | - | - | - | - | - | - | - | - | (2,518 | ) | - | (2,518 | ) | ||||||||||||||||||||||||||||||||||
Class A common stock ($0.28 per share) | - | - | - | - | - | - | - | - | - | (8,398 | ) | - | (8,398 | ) | ||||||||||||||||||||||||||||||||||
Issuance of shares under dividend reinvestment plan | - | - | - | - | 1,743 | 0 | 2,568 | 0 | 53 | - | - | 53 | ||||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | - | - | - | - | - | - | 0 | - | 0 | - | - | 0 | ||||||||||||||||||||||||||||||||||||
Restricted stock compensation and other adjustments | - | - | - | - | - | - | - | - | 2,481 | - | - | 2,481 | ||||||||||||||||||||||||||||||||||||
Repurchase of Class A Common Stock | - | - | - | - | - | - | 0 | 0 | 0 | - | - | 0 | ||||||||||||||||||||||||||||||||||||
Adjustments to redeemable noncontrolling interests | - | - | - | - | - | - | - | - | - | 10,463 | - | 10,463 | ||||||||||||||||||||||||||||||||||||
Balances - April 30, 2020 | 4,600,000 | $ | 115,000 | 4,400,000 | $ | 110,000 | 10,071,981 | $ | 102 | 29,994,064 | $ | 300 | $ | 524,050 | $ | (161,165 | ) | $ | (17,498 | ) | $ | 570,789 |
Series G Preferred Stock Issued | Series G Preferred Stock Amount | Series H Preferred Stock Issued | Series H Preferred Stock Amount | Common Stock Issued | Common Stock Amount | Class A Common Stock Issued | Class A Common Stock Amount | Additional Paid In Capital | Cumulative Distributions In Excess of Net Income | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||
Balances - January 31, 2019 | 3,000,000 | $ | 75,000 | 4,600,000 | $ | 115,000 | 9,960,445 | $ | 100 | 29,913,560 | $ | 299 | $ | 518,985 | $ | (138,248 | ) | $ | 1,562 | $ | 572,698 | |||||||||||||||||||||||||||
Net income applicable to Common and Class A common stockholders | - | - | - | - | - | - | - | - | - | 5,798 | - | 5,798 | ||||||||||||||||||||||||||||||||||||
Change in unrealized income on interest rate swap | - | - | - | - | - | - | - | - | - | - | (1,763 | ) | (1,763 | ) | ||||||||||||||||||||||||||||||||||
Cash dividends paid : | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock ($0.245 per share) | - | - | - | - | - | - | - | - | - | (2,440 | ) | - | (2,440 | ) | ||||||||||||||||||||||||||||||||||
Class A common stock ($0.275per share) | - | - | - | - | - | - | - | - | - | (8,196 | ) | - | (8,196 | ) | ||||||||||||||||||||||||||||||||||
Issuance of shares under dividend reinvestment plan | - | - | - | - | 1,164 | - | 1,390 | - | 48 | - | - | 48 | ||||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | - | - | - | - | - | - | (204 | ) | - | (4 | ) | - | - | (4 | ) | |||||||||||||||||||||||||||||||||
Forfeiture of restricted stock | - | - | - | - | - | - | (13,600 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Restricted stock compensation and other adjustments | - | - | - | - | - | - | - | - | 1,045 | - | - | 1,045 | ||||||||||||||||||||||||||||||||||||
Repurchase of Class A Common Stock | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Adjustments to redeemable noncontrolling interests | - | - | - | - | - | - | - | - | - | (1,233 | ) | - | (1,233 | ) | ||||||||||||||||||||||||||||||||||
Balances - April 30, 2019 | 3,000,000 | $ | 75,000 | 4,600,000 | $ | 115,000 | 9,961,609 | $ | 100 | 29,901,146 | $ | 299 | $ | 520,074 | $ | (144,319 | ) | $ | (201 | ) | $ | 565,953 |
Fair Market Value | Cost Basis | Unrealized Gain/(Loss) | Gross Unrealized Gains | Gross Unrealized (Loss) | ||||||||||||||||
April 30, 2020 | ||||||||||||||||||||
REIT Securities | $ | 7,092 | $ | 6,983 | $ | 109 | $ | 109 | $ | - |
Buildings | 30-40 years |
Property Improvements | 10-20 years |
Furniture/Fixtures | 3-10 years |
Tenant Improvements | Shorter of lease term or their useful life |
Six Months Ended April 30, | Three Months Ended April 30, | Six Months Ended April 30, | Three Months Ended April 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Revenues | $ | 16 | $ | 162 | $ | - | $ | 87 | $ | 777 | $ | 962 | $ | 294 | $ | 462 | ||||||||||||||||
Property operating expense | (27 | ) | (108 | ) | (4 | ) | (62 | ) | (244 | ) | (307 | ) | (134 | ) | (135 | ) | ||||||||||||||||
Depreciation and amortization | (9 | ) | (68 | ) | - | (34 | ) | (36 | ) | (95 | ) | (16 | ) | (42 | ) | |||||||||||||||||
Net Income | $ | (20 | ) | $ | (14 | ) | $ | (4 | ) | $ | (9 | ) | ||||||||||||||||||||
Net Income (Loss) | $ | 497 | $ | 560 | $ | 144 | $ | 285 |
Six Months Ended April 30, | Three Months Ended April 30, | Six Months Ended April 30, | Three Months Ended April 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||||
Net income applicable to common stockholders – basic | $ | 1,705 | $ | 2,453 | $ | 607 | $ | 1,221 | $ | 1,986 | $ | 1,705 | $ | 1,009 | $ | 607 | ||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Restricted stock awards | 51 | 88 | 13 | 49 | 37 | 51 | 25 | 13 | ||||||||||||||||||||||||
Net income applicable to common stockholders – diluted | $ | 1,756 | $ | 2,541 | $ | 620 | $ | 1,270 | $ | 2,023 | $ | 1,756 | $ | 1,034 | $ | 620 | ||||||||||||||||
Denominator | ||||||||||||||||||||||||||||||||
Denominator for basic EPS – weighted average common shares | 9,143 | 8,810 | 9,144 | 8,811 | 9,250 | 9,143 | 9,250 | 9,144 | ||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Restricted stock awards | 391 | 461 | 303 | 531 | 248 | 391 | 353 | 303 | ||||||||||||||||||||||||
Denominator for diluted EPS – weighted average common equivalent shares | 9,534 | 9,271 | 9,447 | 9,342 | 9,498 | 9,534 | 9,603 | 9,447 | ||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||||
Net income applicable to Class A common stockholders-basic | $ | 6,165 | $ | 9,198 | $ | 2,192 | $ | 4,577 | $ | 7,114 | $ | 6,165 | $ | 3,612 | $ | 2,192 | ||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Restricted stock awards | (51 | ) | (88 | ) | (13 | ) | (49 | ) | (37 | ) | (51 | ) | (25 | ) | (13 | ) | ||||||||||||||||
Net income applicable to Class A common stockholders – diluted | $ | 6,114 | $ | 9,110 | $ | 2,179 | $ | 4,528 | $ | 7,077 | $ | 6,114 | $ | 3,587 | $ | 2,179 | ||||||||||||||||
Denominator | ||||||||||||||||||||||||||||||||
Denominator for basic EPS – weighted average Class A common shares | 29,508 | 29,432 | 29,500 | 29,424 | 29,583 | 29,508 | 29,576 | 29,500 | ||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Restricted stock awards | 135 | 172 | 131 | 225 | 84 | 135 | 188 | 131 | ||||||||||||||||||||||||
Denominator for diluted EPS – weighted average Class A common equivalent shares | 29,643 | 29,604 | 29,631 | 29,649 | 29,667 | 29,643 | 29,764 | 29,631 |
Six Months Ended April 30, | Three Months Ended April 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Ridgeway Revenues | 10.4 | % | 11.3 | % | 10.7 | % | 11.4 | % | ||||||||
All Other Property Revenues | 89.6 | % | 88.7 | % | 89.3 | % | 88.6 | % | ||||||||
Consolidated Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
April 30, 2021 | October 31, 2020 | |||||||
Ridgeway Assets | 6.3 | % | 6.4 | % | ||||
All Other Property Assets | 93.7 | % | 93.6 | % | ||||
Consolidated Assets (Note 1) | 100.0 | % | 100.0 | % |
Six Months Ended April 30, | Three Months Ended April 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Ridgeway Revenues | 11.3 | % | 10.8 | % | 11.4 | % | 10.7 | % | ||||||||
All Other Property Revenues | 88.7 | % | 89.2 | % | 88.6 | % | 89.3 | % | ||||||||
Consolidated Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
April 30, 2020 | October 31, 2019 | |||||||
Ridgeway Assets | 6.4 | % | 6.0 | % | ||||
All Other Property Assets | 93.6 | % | 94.0 | % | ||||
Consolidated Assets (Note 1) | 100.0 | % | 100.0 | % |
April 30, 2020 | October 31, 2019 | |||||||
Ridgeway Percent Leased | 98 | % | 97 | % |
April 30, 2021 | October 31, 2020 | |||||||
Ridgeway Percent Leased | 92 | % | 92 | % |
Six Months Ended April 30, | Three Months Ended April 30, | Six Months Ended April 30, | Three Months Ended April 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
The Stop & Shop Supermarket Company | 20 | % | 20 | % | 19 | % | 20 | % | 21 | % | 20 | % | 21 | % | 19 | % | ||||||||||||||||
Bed, Bath & Beyond | 14 | % | 14 | % | 14 | % | 14 | % | 15 | % | 14 | % | 15 | % | 14 | % | ||||||||||||||||
Marshall’s Inc. | 10 | % | 10 | % | 10 | % | 10 | % | 11 | % | 10 | % | 11 | % | 10 | % | ||||||||||||||||
All Other Tenants at Ridgeway (Note 2) | 56 | % | 56 | % | 57 | % | 56 | % | 53 | % | 56 | % | 53 | % | 57 | % | ||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Income Statements (In Thousands): | Six Months Ended April 30, 2021 | Three Months Ended April 30, 2021 | ||||||||||||||||||||||
Ridgeway | All Other Operating Segments | Total Consolidated | Ridgeway | All Other Operating Segments | Total Consolidated | |||||||||||||||||||
Revenues | $ | 6,989 | $ | 60,214 | $ | 67,203 | $ | 3,528 | $ | 29,398 | $ | 32,926 | ||||||||||||
Property Operating Expenses | $ | 2,301 | $ | 21,924 | $ | 24,225 | $ | 1,147 | $ | 10,903 | $ | 12,050 | ||||||||||||
Interest Expense | $ | 819 | $ | 5,914 | $ | 6,733 | $ | 391 | $ | 2,950 | $ | 3,341 | ||||||||||||
Depreciation and Amortization | $ | 1,172 | $ | 13,538 | $ | 14,710 | $ | 592 | $ | 6,600 | $ | 7,192 | ||||||||||||
Net Income | $ | 2,697 | $ | 15,065 | $ | 17,762 | $ | 1,398 | $ | 7,560 | $ | 8,958 |
Income Statements (In Thousands): | Six Months Ended April 30, 2020 | Three Months Ended April 30, 2020 | ||||||||||||||||||||||
Ridgeway | All Other Operating Segments | Total Consolidated | Ridgeway | All Other Operating Segments | Total Consolidated | |||||||||||||||||||
Revenues | $ | 7,385 | $ | 58,243 | $ | 65,628 | $ | 3,562 | $ | 27,718 | $ | 31,280 | ||||||||||||
Property Operating Expenses | $ | 2,218 | $ | 20,230 | $ | 22,448 | $ | 1,088 | $ | 9,621 | $ | 10,709 | ||||||||||||
Interest Expense | $ | 841 | $ | 5,807 | $ | 6,648 | $ | 413 | $ | 2,896 | $ | 3,309 | ||||||||||||
Depreciation and Amortization | $ | 1,197 | $ | 13,086 | $ | 14,283 | $ | 610 | $ | 6,538 | $ | 7,148 | ||||||||||||
Net Income | $ | 3,129 | $ | 13,632 | $ | 16,761 | $ | 1,451 | $ | 5,789 | $ | 7,240 |
Income Statements (In Thousands): | Six Months Ended April 30, 2020 | Three Months Ended April 30, 2020 | ||||||||||||||||||||||
Ridgeway | All Other Operating Segments | Total Consolidated | Ridgeway | All Other Operating Segments | Total Consolidated | |||||||||||||||||||
Revenues | $ | 7,385 | $ | 58,243 | $ | 65,628 | $ | 3,562 | $ | 27,718 | $ | 31,280 | ||||||||||||
Property Operating Expenses | $ | 2,218 | $ | 20,230 | $ | 22,448 | $ | 1,088 | $ | 9,621 | $ | 10,709 | ||||||||||||
Interest Expense | $ | 841 | $ | 5,807 | $ | 6,648 | $ | 413 | $ | 2,896 | $ | 3,309 | ||||||||||||
Depreciation and Amortization | $ | 1,197 | $ | 13,086 | $ | 14,283 | $ | 610 | $ | 6,538 | $ | 7,148 | ||||||||||||
Net Income | $ | 3,129 | $ | 13,632 | $ | 16,761 | $ | 1,451 | $ | 5,789 | $ | 7,240 |
Income Statements (In Thousands): | Six Months Ended April 30, 2019 | Three Months Ended April 30, 2019 | ||||||||||||||||||||||
Ridgeway | All Other Operating Segments | Total Consolidated | Ridgeway | All Other Operating Segments | Total Consolidated | |||||||||||||||||||
Revenues | $ | 7,402 | $ | 60,970 | $ | 68,372 | $ | 3,638 | $ | 30,467 | $ | 34,105 | ||||||||||||
Property Operating Expenses | $ | 2,200 | $ | 21,353 | $ | 23,553 | $ | 1,125 | $ | 10,585 | $ | 11,710 | ||||||||||||
Interest Expense | $ | 854 | $ | 6,256 | $ | 7,110 | $ | 417 | $ | 3,115 | $ | 3,532 | ||||||||||||
Depreciation and Amortization | $ | 1,186 | $ | 12,739 | $ | 13,925 | $ | 585 | $ | 6,400 | $ | 6,985 | ||||||||||||
Net Income | $ | 3,162 | $ | 16,816 | $ | 19,978 | $ | 1,511 | $ | 8,449 | $ | 9,960 |
April 30, 2020 | October 31, 2019 | April 30, 2021 | October 31, 2020 | |||||||||||||
Beginning Balance | $ | 77,876 | $ | 78,258 | $ | 62,071 | $ | 77,876 | ||||||||
Change in Redemption Value | (11,009 | ) | 4,452 | 8,575 | (15,047 | ) | ||||||||||
Partial Redemption of UB High Ridge Noncontrolling Interest | (560 | ) | (1,413 | ) | ||||||||||||
Partial Redemption of Dumont Noncontrolling Interest | - | (630 | ) | |||||||||||||
Partial Redemption of High Ridge Noncontrolling Interest | (4,565 | ) | (560 | ) | ||||||||||||
Partial Redemption of New City Noncontrolling Interest | (50 | ) | (91 | ) | 0 | (198 | ) | |||||||||
Redemption of Ironbound Noncontrolling Interest | - | (2,700 | ) | |||||||||||||
Ending Balance | $ | 66,257 | $ | 77,876 | $ | 66,081 | $ | 62,071 |
April 30, 2020 | October 31, 2019 | April 30, 2021 | October 31, 2020 | |||||||||||||
Chestnut Ridge Shopping Center (50%) | $ | 12,082 | $ | 12,048 | $ | 12,389 | $ | 12,252 | ||||||||
Gateway Plaza (50%) | 6,905 | 6,847 | 6,784 | 6,929 | ||||||||||||
Putnam Plaza Shopping Center (66.67%) | 2,401 | 3,446 | 3,189 | 2,599 | ||||||||||||
Midway Shopping Center, L.P. (11.79%) | 4,250 | 4,384 | 4,166 | 4,233 | ||||||||||||
Applebee's at Riverhead (50%) | 1,893 | 1,926 | 1,996 | 1,943 | ||||||||||||
81 Pondfield Road Company (20%) | 723 | 723 | 723 | 723 | ||||||||||||
Total | $ | 28,254 | $ | 29,374 | $ | 29,247 | $ | 28,679 |
Six Months Ended April 30, | Three Months Ended April 30, | Six Months Ended April 30, | Three Months Ended April 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Operating lease income: | ||||||||||||||||||||||||||||||||
Fixed lease income (Base Rent) | $ | 50,533 | $ | 49,990 | $ | 25,418 | $ | 25,062 | $ | 48,468 | $ | 50,533 | $ | 24,404 | $ | 25,418 | ||||||||||||||||
Variable lease income (Recoverable Costs) | 14,110 | 16,825 | 6,115 | 8,373 | 18,792 | 14,110 | 8,814 | 6,115 | ||||||||||||||||||||||||
Other lease related income, net: | ||||||||||||||||||||||||||||||||
Above/below market rent amortization | 350 | 291 | 173 | 156 | 289 | 350 | 194 | 173 | ||||||||||||||||||||||||
Uncollectible amounts in lease income | (1,845 | ) | (496 | ) | (1,503 | ) | (242 | ) | (1,379 | ) | (1,845 | ) | (724 | ) | (1,503 | ) | ||||||||||||||||
ASC Topic 842 cash basis lease income reversal | (1,892 | ) | 0 | (893 | ) | 0 | ||||||||||||||||||||||||||
Total lease income | $ | 63,148 | $ | 66,610 | $ | 30,203 | $ | 33,349 | $ | 64,278 | $ | 63,148 | $ | 31,795 | $ | 30,203 |
Fiscal Year Ending | ||||||||
2020 (a) | $ | 48,200 | ||||||
2021 | 80,100 | |||||||
2021 (a) | $ | 47,709 | ||||||
2022 | 64,200 | 85,447 | ||||||
2023 | 53,800 | 69,814 | ||||||
2024 | 42,600 | 59,360 | ||||||
2025 | 48,775 | |||||||
Thereafter | 189,100 | 207,961 | ||||||
Total | $ | 478,000 | $ | 519,066 |
Common Shares | Class A Common Shares | Common Shares | Class A Common Shares | |||||||||||||||||||||||||||||
Non-vested Shares | Shares | Weighted-Average Grant-Date Fair Value | Shares | Weighted-Average Grant-Date Fair Value | Shares | Weighted-Average Grant-Date Fair Value | Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||||||||||||||
Non-vested at October 31, 2019 | 1,146,100 | $ | 17.52 | 463,225 | $ | 21.07 | ||||||||||||||||||||||||||
Non-vested at October 31, 2020 | 924,550 | $ | 17.69 | 490,950 | $ | 21.56 | ||||||||||||||||||||||||||
Granted | 105,450 | $ | 19.59 | 120,800 | $ | 23.96 | 105,850 | $ | 11.68 | 125,800 | $ | 13.75 | ||||||||||||||||||||
Vested | (327,000 | ) | $ | 17.71 | (92,375 | ) | $ | 22.20 | (102,600 | ) | $ | 17.06 | (91,800 | ) | $ | 19.14 | ||||||||||||||||
Forfeited | - | $ | - | - | $ | - | 0 | $ | 0 | (400 | ) | $ | 18.85 | |||||||||||||||||||
Non-vested at April 30, 2020 | 924,550 | $ | 17.69 | 491,650 | $ | 21.57 | ||||||||||||||||||||||||||
Non-vested at April 30, 2021 | 927,800 | $ | 17.08 | 524,550 | $ | 20.12 |
Level 1- Quoted prices for identical instruments in active markets | ||
Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
April 30, 2020 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Marketable Equity Securities | $ | 7,092 | $ | 7,092 | $ | - | $ | - | ||||||||||||||||||||||||
April 30, 2021 | ||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Interest Rate Swap Agreement | $ | 14,855 | $ | - | $ | 14,855 | $ | - | $ | 8,294 | $ | 0 | $ | 8,294 | $ | 0 | ||||||||||||||||
Redeemable noncontrolling interests | $ | 66,257 | $ | 13,958 | $ | 51,753 | $ | 546 | $ | 66,081 | $ | 18,409 | $ | 47,126 | $ | 546 | ||||||||||||||||
October 31, 2019 | ||||||||||||||||||||||||||||||||
October 31, 2020 | ||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Interest Rate Swap Agreement | $ | 6,754 | $ | - | $ | 6,754 | $ | - | $ | 13,300 | $ | 0 | $ | 13,300 | $ | 0 | ||||||||||||||||
Redeemable noncontrolling interests | $ | 77,876 | $ | 24,968 | $ | 52,362 | $ | 546 | $ | 62,071 | $ | 9,921 | $ | 51,604 | $ | 546 |
negative impacts from the continued spread of COVID-19 or from the emergence of a new strain of novel corona virus, including on the U.S. or global economy or on our business, financial position or results of operations; economic and other market conditions, including real estate and market conditions, that could impact us, our properties or the financial stability of our tenants; | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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as well as our ability to anticipate changes in consumer buying practices and the space needs of tenants; our relationships with our tenants and their financial condition and liquidity; any difficulties in renewing leases, filling vacancies or negotiating improved lease terms; the inability of our properties to generate increased, or even sufficient, revenues to offset expenses, including amounts we are required to pay to municipalities for real estate taxes, payments for common area maintenance expenses at our properties and salaries for our management team and other employees; the market value of our assets and the supply of, and demand for, retail real estate in which we invest; risks of real estate acquisitions and dispositions, including our ability to identify and acquire retail real estate that meet our investment standards in our markets, as well as the potential failure of transactions to close; risks of operating properties through joint ventures that we do not fully control; financing risks, such as the inability to obtain debt or equity financing on favorable terms or the inability to comply with various financial covenants included in our Unsecured Revolving Credit Facility (the "Facility") or other debt instruments we currently have or may subsequently obtain, as well as the level and volatility of interest rates, which could impact the market price of our common stock and the cost of our borrowings; environmental risk and regulatory requirements; risks related to our status as a real estate investment trust, including the application of complex federal income tax regulations that are subject to change; legislative and regulatory changes generally that may impact us or our tenants; and
Executive Summary Overview We are a fully integrated, self-administered real estate company that has elected to be a Real Estate Investment Trust ("REIT") for federal income tax purposes, engaged in the acquisition, ownership and management of commercial real estate, primarily neighborhood and community shopping centers, anchored by supermarkets, pharmacy/drug-stores and wholesale clubs, with a concentration in the metropolitan tri-state area outside of the City of New York. Other real estate assets include office properties, one self-storage facility, single tenant retail or restaurant properties and office/retail mixed-use properties. Our major tenants include supermarket chains and other retailers who sell basic necessities. At April 30, In addition to our business of owning and managing real estate, we are also involved in the beer, wine and spirits retail business, through our ownership of We have paid quarterly dividends to our stockholders continuously since our founding in 1969. Impact of COVID-19 The following discussion is intended to provide stockholders with certain information regarding the impacts of the COVID-19 pandemic on our business and management’s efforts to respond to those impacts. Unless otherwise specified, the statistical and other information regarding our property portfolio and tenants are estimates based on information available to us as of The spread of COVID-19 is having a significant impact on the global economy, the U.S. economy, the economies of the local markets throughout the northeast region in which Moreover, not all tenants have been impacted in the same way or to the same degree by the pandemic and the measures adopted to control the spread of COVID-19. For example, grocery stores, As of April 30, 2021, all of our 73 retail shopping centers, stand-alone restaurants and stand-alone bank branches are open and operating, with approximately 99.6% of our tenants (based on Annualized Base Rent ("ABR")) open and fully or partially operating and approximately 0.4% of our tenants currently closed. As of April 30, 2021, all of our shopping centers include necessity-based tenants, with approximately 71.1% of our tenants (based on ABR) designated as “essential businesses” during the early stay-at-home period of the pandemic in the tri-state area or otherwise permitted to operate through curbside pick-up and other modified operating procedures in accordance with state guidelines. These essential businesses are 99.6% open. As of April 30, 2021, approximately 84% of our GLA is located in properties anchored by grocery stores, pharmacies or wholesale clubs, 6% of our GLA is located in outdoor retail shopping centers adjacent to regional malls and 8% of our GLA is located in outdoor neighborhood convenience retail, with the remaining 2% of our GLA consisting of six suburban office buildings located in Greenwich, Connecticut and Bronxville, New York, three retail bank branches and one childcare center. All six suburban office buildings are open with some restrictions based on state mandates and all of the retail bank branches are open. As of June 1, 2021, we have received payment of approximately 91.2%, 92.4% and 85.7% of lease income, consisting of contractual base rent (leases in place without consideration of any deferral or abatement agreements), common area maintenance reimbursement and real estate tax reimbursement billed for April 2020 through April 2021, the second quarter (February-April) of fiscal 2021 and the month of May 2021, respectively, not including the application of any security deposits. Similar to other retail landlords across the United States, we received a number of requests for rent relief from tenants, with most requests received during the early days of the pandemic when stay-at-home orders were in place and many businesses were required to close. We continued to receive a smaller number of new requests even after businesses began to re-open, and in some cases, follow-on requests from tenants to whom we had already provided rent relief, but these requests are beginning to taper off and no new requests from tenants who had not previously requested rent relief were received during the quarter ended April 30, 2021. We have been
Each reporting period, we must make estimates as to the collectability of our tenants’ accounts receivable related to base rent, straight-line rent, expense reimbursements and other revenues. Management analyzes accounts receivable by considering tenant creditworthiness, current economic trends, including the impact of the COVID-19 pandemic on tenants’ businesses, and changes in tenants’ payment patterns when evaluating the adequacy of the allowance for doubtful accounts. As a result of this analysis, we have increased our allowance for doubtful accounts by $1.4 million and $725,000 in the six and three months ended April 30, 2021, respectively, which on an annualized basis represents approximately 2.9% of ABR. Management has every intention of collecting our billed rents, to the extent feasible, regardless of the requirement under Generally Accepted Accounting Principles ("GAAP") to reserve for uncollectable accounts. In addition, the GAAP accounting standard governing leases requires, among other things, that if a specific tenant’s future lease payments as contracted are not probable of collection, revenue recognition for that tenant must be converted to cash-basis accounting and be limited to the lesser of the amount billed or collected from that tenant, and any straight-line rental receivables would need to be reversed in the period that the collectability assessment is changed to not probable. As a result of the continuing analysis of our entire tenant base, we have determined as of April 30, 2021 that 89 tenants future lease payments were no longer probable of collection (10.3% of our approximate 863 tenants), which included 9 tenants converted to cash-basis accounting in the three months ended April 30, 2021 in accordance with ASC Topic 842. As a result of this assessment, in the six and three months ended April 30, 2021, we reversed lease income in the amount of $1.9 million and $893,000, respectively, which represented a reversal of prior billed but unpaid rents related to the tenants converted to cash-basis accounting in the current quarter and billed but unpaid rents related to all 89 tenants converted to cash basis accounting through April 30, 2021. The reduction to lease income was approximately 3.9% of ABR. In addition, as a result of this assessment, we reversed $1.3 million and $814,000 in the six and three months ended April 30, 2021, respectively, of accrued straight-line rent receivables related to tenants converted to cash basis accounting in the two respective periods. All of these charges result in a direct reduction of lease income on our consolidated income statement. Each reporting period, management assesses whether there are any indicators that the value of its real estate investments may be impaired and has concluded that none of its investment properties are impaired at April 30, 2021. The COVID-19 pandemic has, however, significantly impacted many of the sectors in which our tenants operate, and if the effects of the pandemic are prolonged, it could have a significant adverse impact on their underlying industries. We will continue to monitor the economic, financial, and social conditions resulting from the COVID-19 pandemic and will assess our real estate asset portfolio for any impairment indicators as required under GAAP. If we determine that any of our real estate assets are impaired, we would be required to take impairment charges and such amounts could be material. See Footnote 1 to the Notes to the Company’s Consolidated Financial Statements for additional discussion regarding impairment charges. Actions Taken in Response to COVID-19 Moreover, we have taken a number of proactive measures to maintain the strength of our business and manage the impact of COVID-19 on our operations and liquidity, including the following: Along with our tenants and the communities we together serve, the health and safety of our employees is our top priority. We have adapted our operations to protect employees, including by implementing a work-from-home policy in March 2020, which worked seamlessly, with no disruption in our service to tenants and other business partners. On May 20, 2020, in response to a change in the State of Connecticut's mandates, we re-opened our office at less than 50% capacity, with employees encouraged to continue working from home when feasible consistent with business needs. Thereafter, we have been gradually increasing our office capacity in accordance with applicable state guidance. We continue to closely monitor recommendations and mandates of federal, state and local governments and health authorities to ensure the safety of our own employees as well as our properties. We are in regular communication with our tenants, providing assistance in identifying local, state and federal resources that may be available to support their businesses and employees during the pandemic, including stimulus funds that may be available under the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the "CARES Act”). We compiled a robust set of tenant materials explaining these and other programs, which were posted when relevant to the tenant portal on our website, disseminated by e-mail to all of our tenants and communicated directly by telephone through our leasing agents. Each of our tenants was also assigned a leasing agent to whom the tenant could turn with questions and concerns during these uncertain times. In addition, we launched a program designating dedicated parking spots for curbside pick-up at our shopping centers for use by all tenants and their customers, assisted restaurant tenants in securing municipal approvals for outdoor seating, and are assisting tenants in many other ways to improve their business prospects. To enhance our liquidity position and maintain financial flexibility, we borrowed $35 million under our Facility during March and April 2020. At April 30, 2021, we had approximately $38.4 million in cash and cash equivalents on our consolidated balance sheet, and an additional $89 million available under our Facility (excluding the $50 million accordion feature). The only unsecured debt we have outstanding are draws on our Facility. In March 2021, we refinanced our Facility, which increased the capacity to $125 million and extended the maturity three years. The new maturity date is March 29, 2024, with an additional one-year company extension option. Additionally, we do not have any secured debt maturing until January 2022. All maturing secured debt in fiscal 2022 is generally below a 45% loan-to-value ratio, and we believe we will be able to refinance that debt. We have taken proactive measures to manage costs, including reducing, where possible, our common area maintenance spending. We have an ongoing construction project at one of our properties, with approximately $300,000 remaining to complete the project. Otherwise, only minimal construction is underway. Further, we expect that the only material capital expenditures at our properties in the near-term will be tenant improvements and/or other leasing costs associated with existing and new leases.
On June 4, 2021, the company’s Board of Directors declared a quarterly dividend of $0.207 per Common share and $0.23 per Class A Common share that will be paid on July 16, 2021 to holders of record on July 2, 2021. The Board determined that the increased level is appropriate, after taking into account the improved liquidity position of the Company, the significant progress made in vaccinating the U.S. public, the resulting decline in COVID-19 cases, and the early signs of business improvement as operating restrictions are relaxed and individuals begin returning to pre-pandemic activities. Also, as a REIT, we are required
Strategy, Challenges & Outlook We have a conservative capital structure, which includes permanent equity sources of Common Stock, Class A Common Stock and two series of perpetual preferred stock, which are only redeemable at our option. Key elements of our growth maintain our focus on community and neighborhood shopping centers, anchored principally by regional supermarkets, pharmacy chains or wholesale clubs, which we believe can provide a more stable revenue flow even during difficult economic times because of the focus on food and other types of staple goods; acquire quality neighborhood and community shopping centers in the northeastern part of the United States with a concentration on properties in the metropolitan tri-state area outside of the City of New York, and unlock further value in these properties with selective enhancements to both the property and tenant mix, as well as improvements to management and leasing fundamentals, with hopes to grow our assets through acquisitions subject to the availability of acquisitions that meet our investment parameters; selectively dispose of underperforming properties and re-deploy the proceeds into potentially higher performing properties that meet our acquisition criteria; invest in our properties for the long-term through regular maintenance, periodic renovations and capital improvements, enhancing their attractiveness to tenants and customers (e.g. curbside pick-up), as well as increasing their value; leverage opportunities to increase GLA at existing properties, through development of pad sites and reconfiguring of existing square footage, to meet the needs of existing or new tenants; proactively manage our leasing strategy by aggressively marketing available GLA, renewing existing leases with strong tenants, anticipating tenant weakness when necessary by pre-leasing their spaces and replacing below-market-rent leases with increased market rents, with an eye towards securing leases that include regular or fixed contractual increases to minimum rents; improve and refine the quality of our tenant mix at our shopping centers; maintain strong working relationships with our tenants, particularly our anchor tenants; maintain a conservative capital structure with low debt levels; and control property operating and administrative costs. We believe our strategy of focusing on community and neighborhood shopping centers, anchored principally by regional supermarkets, pharmacy chains or wholesale clubs, is being validated during the COVID-19 pandemic. We believe the nature of our properties makes them less susceptible to economic downturns than other retail properties whose anchor tenants do not supply basic necessities. During normal conditions, we believe that consumers generally prefer to purchase food and other staple goods and services in person, and even during the COVID-19 pandemic our supermarkets, pharmacies and wholesale clubs have been posting strong in-person sales. Moreover, most of our grocery stores have also implemented or expanded curbside pick-up or partnered with delivery services to cater to the needs of their customers during We recognize, however, that the pandemic may have accelerated a movement towards e-commerce that may be challenging for weaker tenants that lack an omni-channel sales or micro-fulfillment strategy. We launched a program designating dedicated parking spots for curbside Moreover, due to the current disruptions in the economy and our marketplace as a result of the COVID-19 pandemic and resulting changes to the short-term and possibly even long-term landscape for brick-and-mortar retail, we anticipate that it will be more difficult to actively pursue and achieve certain elements of our growth strategy. For example, it We continue to have active discussions with existing and potential new tenants for new and renewed leases. As a REIT, we are susceptible to changes in interest rates, the lending environment, the availability of capital markets and the general economy. The Transaction Highlights of Fiscal Set forth below are highlights of our recent property acquisitions, potential acquisitions under contract, other investments, property dispositions and financings: In December 2020, we redeemed 17,995 units of UB High Ridge, LLC from a noncontrolling member. The total cash price paid for the redemption was $364,000. As a result of the redemption, our ownership percentage of High Ridge increased to 17.0% from 16.3%. In March 2021, we sold one free standing restaurant retail property located in Hillsdale, NJ, as that property no longer met our investment objectives. The property was sold for $1.3 million and we recorded a gain on sale of property the six month and three month periods ended April 30, 2021 in the amount of $435,000. In March 2021, we entered into a purchase and sale agreement to sell our property located in Newington, NH, to an unrelated third party for a sale price of $13.4 million, as that property no longer met our investment objectives. We anticipate the sale will close sometime later in fiscal 2021. When and if the sale closes, we anticipate that we will record a gain on sale of the property in the approximate amount of $11.9 million. In March 2021, we refinanced our Facility, increasing the borrowing capacity to $125 million and extending the maturity date to March 29, 2024 with a one-year extension at our option. Please see note 2 in our financial statements included in Item 1 for more information. In April 2021, we redeemed 178,804 units of UB High Ridge, LLC from a noncontrolling member. The total cash price paid for the redemption was $4.2 million. As a result of the redemption, our ownership percentage of High Ridge increased to 23.7% from 17.0%. Leasing For the six months ended April 30, Tenant improvements and leasing commissions averaged The rental increases/decreases associated with new and renewal leases generally include all leases signed in arms-length transactions reflecting market leverage between landlords and tenants during the period. The comparison between average rent for expiring leases and new leases is determined by including minimum rent paid on the expiring lease and minimum rent to be paid on the new lease in the first year. In some instances, management exercises judgment as to how to most effectively reflect the comparability of spaces reported in this calculation. The change in rental income on comparable space leases is impacted by numerous factors including current market rates, location, individual tenant creditworthiness, use of space, market conditions when the expiring lease was signed, the age of the expiring lease, capital investment made in the space and the specific lease structure. Tenant improvements include the total dollars committed for the improvement (fit-out) of a space as it relates to a specific lease but may also include base building costs (i.e. expansion, escalators or new entrances) that are required to make the space leasable. Incentives (if applicable) include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements. The leases signed in Significant Leasing Events In 2017, Toys R’ Us and Babies R’ Us (“Toys”) filed a voluntary petition under chapter 11 of title 11 of the United States Bankruptcy Impact of Inflation on Leasing Our long-term leases contain provisions to mitigate the adverse impact of inflation on our operating results. Such provisions include clauses entitling us to receive (a) scheduled base rent increases and (b) percentage rents based upon tenants’ gross sales, which could increase as prices rise. In addition, many of our non-anchor leases are for terms of less than ten years, which permits us to seek increases in rents upon renewal at then current market rates if rents provided in the expiring leases are below then existing market rates. Most of our leases require tenants to pay a share of operating expenses, including common area maintenance, real estate taxes, insurance and utilities, thereby reducing our exposure to increases in costs and operating expenses resulting from inflation. Critical Accounting Critical accounting Valuation of investment properties Revenue recognition Determining the amount of our allowance for doubtful accounts Valuation of investment properties At each reporting period management must assess whether the value of any of its investment properties are impaired. The judgement of impairment is subjective and requires management to make assumptions about future cash flows of an investment property and to consider other factors. The estimation of these factors has a direct effect on valuation of investment properties and consequently net income. As of April 30, 2021, management does not believe that any of our investment properties are impaired based on information available to us at April 30, 2021. In the future, almost any level of impairment would be material to our net income. Revenue Recognition Our main source of revenue is lease income from our tenants to whom we lease space at our 80 shopping centers. The COVID-19 pandemic has caused distress for many of our tenants as some of those tenant businesses were forced to close early in the pandemic, and although most have been allowed to re-open and operate, many tenants like restaurants and fitness/gyms are operating at reduced capacity or operational efficiency. As a result we have many tenants who have had difficulty paying all of their contractually obligated rents and we have reached agreements with many of them to defer or abate portions of the contractual rents due under their leases with the Company. In accordance with ASC Topic 842, where appropriate, we will continue to accrue rental revenue during the deferral period, except for tenants for which revenue recognition was converted to cash basis accounting in accordance with ASC Topic 842. However, we anticipate that some tenants eventually will be unable to pay amounts due, and we will incur losses against our rent receivables, which would reduce lease income. The extent and timing of the recognition of such losses will depend on future developments, which are highly uncertain and cannot be predicted and these future losses could be material. Allowance for doubtful accounts GAAP requires us to bill our tenants based on the terms in their leases and to record lease income on a straight-line basis. When a tenant does not pay a billed amount due under their lease, it becomes a tenant account receivable, or an asset of the Company. GAAP requires that receivables, like most assets, be recorded at their realizable value. Each reporting period we analyze our tenant accounts receivable, and based on the information available to management at the time, and record an allowance for doubtful account for any unpaid tenant receivable that we believe is uncollectable. This analysis is subjective and the conclusions reached have a direct impact on net income. As of April 30, 2021, the portion of our billed but unpaid tenant receivables, excluding straight-line rent receivables that we believe are collectable, amounts to $2.2 million. For a further discussion Liquidity and Capital Resources Overview At April 30, Our short-term liquidity requirements consist primarily of normal recurring operating expenses and capital expenditures, debt service, management and professional fees, cash distributions to certain limited partners and non-managing members of our consolidated joint ventures, and regular dividends paid to our Common and Class A Common stockholders. Cash dividends paid on Common and Class A Common stock for the six months endedApril 30, During the first two quarters of fiscal 2021, the Board of Directors declared and We are Our long-term liquidity requirements consist primarily of obligations under our long-term debt, dividends paid to our preferred stockholders, capital expenditures and capital required for acquisitions. In addition, the limited partners and non-managing members of our five consolidated joint venture entities, McLean Plaza Associates, LLC, UB Orangeburg, LLC, UB High Ridge, LLC, UB Dumont I, LLC and UB New City I, LLC, have the right to require us to repurchase all or a portion of their limited partner or non-managing member interests at prices and on terms as set forth in the governing agreements. See Note 3 to the consolidated financial statements included in Item 1 of this Report on Form 10-Q. Historically, we have financed the foregoing requirements through operating cash flow, borrowings under our Facility, debt refinancings, new debt, equity offerings and other capital market transactions, and/or the disposition of under-performing assets, with a focus on keeping our debt level low. We expect to continue doing so in the future. We cannot assure you, however, that these sources will always be available to us when needed, or on the terms we desire. Capital Expenditures We invest in our existing properties and regularly make capital expenditures in the ordinary course of business to maintain our properties. We believe that such expenditures enhance the competitiveness of our properties. For the six months ended April 30, We are currently in the process of developing 3.4 acres of recently-acquired land adjacent to a shopping center we own in Stratford, CT. We are building two Financing Strategy, Unsecured Revolving Credit Facility and other Financing Transactions Our strategy is to maintain a conservative capital structure with low leverage levels by commercial real estate standards. Mortgage notes payable and other loans of Included in the mortgage notes discussed above, we have We currently maintain a ratio of total debt to total assets below On March 30, 2021, we refinanced our existing Facility with the same syndicate of three banks led by The Bank of New York Mellon, as administrative agent, increasing the capacity to $125 million from $100 million, with the ability under certain conditions to additionally increase the capacity to At April 30, Net Cash Flows from: Operating Activities Net cash flows provided by operating activities amounted to Investing Activities Net cash flows used in investing activities amounted to We regularly make capital investments in our properties for improvements, and pursuant to our obligations for tenant improvements and leasing commissions. Financing Activities The 2021. Results of Operations The following information summarizes our results of operations for the six months and three months ended April 30,
Note 1 – Properties held in both periods includes only properties owned for the entire periods of Base rents Property Acquisitions and Properties Sold: Properties Held in Both Periods: Revenues Base Rent The net In the first six months of fiscal Tenant Recoveries In the six month and three month periods ended April 30, The increase in tenant recoveries was Uncollectable Amounts in Lease Income In the six month and three month periods endedApril 30, ASC Topic 842 Cash Basis Lease Income Reversals The Company adopted ASC Topic 842 "Leases" at the beginning of fiscal 2020. ASC Topic 842 requires amongst other things, that if the collectability of a specific tenant’s future lease payments as contracted are not probable of collection, revenue recognition for that tenant must be converted to cash-basis accounting and be limited to the lesser of the amount billed or collected from that tenant, and in addition, any straight-line rental receivables would need to be reversed in the period that the collectability assessment changed to not probable. As a result of continuing to analyze our entire tenant base, we have determined that as Expenses Property Operating In the six month and three month periods ended April 30, Property Taxes In the six month and three month periods ended April 30, Interest In the six month and three month periods ended April 30, Depreciation and Amortization In the six month General and Administrative Expenses In the six month and three month periods endedApril 30, Funds from Operations We consider Funds from Operations (“FFO”) to be an additional measure of our operating performance. We report FFO in addition to net income applicable to common stockholders and net cash provided by operating activities. Management has adopted the definition suggested by The National Association of Real Estate Investment Trusts (“NAREIT”) and defines FFO to mean net income (computed in accordance with GAAP) excluding gains or losses from sales of property, plus real estate-related depreciation and amortization and after adjustments for unconsolidated joint ventures. Management considers FFO to be a meaningful, additional measure of operating performance because it primarily excludes the assumption that the value of our real estate assets diminishes predictably over time and industry analysts have accepted it as a performance measure. FFO is presented to assist investors in analyzing our performance. It is helpful as it excludes various items included in net income that are not indicative of our operating performance, such as gains (or losses) from sales of property and depreciation and amortization. However, FFO: does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); and should not be considered an alternative to net income as an indication of our performance. FFO as defined by us may not be comparable to similarly titled items reported by other real estate investment trusts due to possible differences in the application of the NAREIT definition used by such REITs. The table below provides a reconciliation of net income applicable to Common and Class A Common stockholders in accordance with GAAP to FFO for the six months and three months ended April 30,
FFO amounted to An increase A
Decreases: A decrease in lease income related to additional vacancies in the
FFO amounted to An increase
A decrease of $103,000 in net Decreases: A decrease in lease income related to additional vacancies in the portfolio in the three months ended April 30, 2021 when compared to the corresponding prior period, predominantly at 8 properties. In addition, the vacancy rate increased at our
Off-Balance Sheet Arrangements We have six off-balance sheet investments in real property through unconsolidated joint ventures: a 66.67% equity interest in the Putnam Plaza Shopping Center, an 11.792% equity interest in Midway Shopping Center, L.P., a 50% equity interest in the Chestnut Ridge Shopping Center, a 50% equity interest in the Gateway Plaza shopping center and the Riverhead Applebee’s Plaza, and a 20% interest in a suburban office building with ground level retail. These unconsolidated joint ventures are accounted for under the equity method of accounting, as we have the ability to exercise significant influence over, but not control of, the operating and financial decisions of these investments. Our off-balance sheet arrangements are more fully discussed in Note 4, “Investments in and Advances to Unconsolidated Joint Ventures” in our financial statements in Item 1 of this Quarterly Report on Form 10-Q. Although we have not guaranteed the debt of these joint ventures, we have agreed to customary environmental indemnifications and nonrecourse carve-outs (e.g. guarantees against fraud, misrepresentation and bankruptcy) on certain loans of the joint ventures. The below table details information about the outstanding non-recourse mortgage financings on our unconsolidated joint ventures (amounts in thousands):
Environmental Matters Based We are exposed to interest rate risk primarily through our borrowing activities, which predominantly include fixed-rate mortgage debt and, in limited circumstances, variable rate debt. As of April 30, For our fixed-rate debt, there is inherent rollover risk for borrowings as they mature and are renewed at current market rates. The extent of this risk is not quantifiable or predictable because of the variability of future interest rates and our future financing requirements. To reduce our exposure to interest rate risk on variable-rate debt, we use interest rate swap agreements, for example, to convert some of our variable-rate debt to fixed-rate debt. As of April 30, At April 30, Evaluation of Disclosure Controls and Procedures The Company's Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company's disclosure controls and procedures are effective. Changes in Internal Controls During the quarter ended April 30, PART II – OTHER INFORMATION In the ordinary course of business, the Company is involved in legal proceedings. There are no material legal proceedings presently pending against the Company. 30 In December 2013, our Board of Directors approved a share repurchase program (“Current Repurchase Program”) for the repurchase of up to 2,000,000 shares, in the aggregate, of Common stock and Class A Common stock in open market transactions. We have repurchased 195,413 shares of Class A Common Stock under the Current Repurchase Program. From the inception of all repurchase programs, we have repurchased 4,600 shares of Common Stock and 919,991 shares of Class A Common Stock. For the three months ended April 30, From time to time, we could be deemed to have repurchased shares as a result of shares withheld for tax purposes upon a stock compensation related vesting event.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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