- Generated earnings per diluted share of
$0.78 for the quarter compared to$1.10 in first quarter 2016 which included a$0.37 gain on change in control of interests. - Generated FFO per diluted share of
$1.45 for the quarter compared to$1.38 in first quarter 2016, representing growth of 5.1%. - Generated same center property operating income growth of 4.3% for the first quarter.
- Signed leases for 523,869 sf of comparable space (591,765 sf total) in the first quarter at an average rent of
$34.91 psf and achieved cash basis rollover growth on those comparable spaces of 11%. - Acquired Riverpoint Center, 211,000 sf shopping center on 17 acres of land in
Chicago, Illinois for$107 million . - Increased our 2017 FFO per diluted share guidance range to
$5.85 - $5.93 .
"We're very pleased to deliver another quarter of record bottom line results to our shareholders," said
Financial Results
Net income available for common shareholders was
In the first quarter 2017,
FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income is attached to this press release.
Portfolio Results
In first quarter 2017, same-center property operating income increased 4.3% when including properties that are being redeveloped and 1.0% when excluding those properties. Our proactive anchor releasing efforts to reposition our properties for the future continued to negatively impact our same-store quarterly results.
The overall portfolio was 94.6% leased as of
During first quarter 2017,
Regular Quarterly Dividends
Summary of Other Quarterly Activities and Recent Developments
March 31, 2017 –Federal Realty acquired Riverpoint Center, a 211,000 square foot grocery anchored community shopping center with surface parking on 17 acres of land inChicago, Illinois . The property is located in affluentLincoln Park and is 3.5 miles northwest of downtownChicago . The Trust sourced the acquisition off-market for$107 million cash.March 28, 2017 –Federal Realty announced its exclusive partnership withFreight Farms , aBoston -based company that retrofits shipping containers with vertical farming technology capable of growing acres' worth of produce in a fraction of the space of traditional farms. The partnership empowers anyone to use this technology while repurposingFederal Realty's unused parking spaces as a place to locally and sustainably produce food that benefits the shopping centers' tenants, customers and community.
Guidance
Conference Call Information
About
Safe Harbor Language
Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although
- risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire;
- risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopments or renovation projects that we do pursue may cost more, take more time to complete, or fail to perform as expected;
- risks that we are investing a significant amount in ground-up development projects that may not perform as planned, may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;
- risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;
- risks that our growth will be limited if we cannot obtain additional capital;
- risks associated with general economic conditions, including local economic conditions in our geographic markets;
- risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense; and
- risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT.
Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise. You should carefully review the risks and risk factors included in our Annual Report on Form 10-K filed with the
Investor Inquires: |
Media Inquiries: |
|
Leah Andress |
Andrea Simpson |
|
Investor Relations Associate |
Vice President, Marketing |
|
301.998.8265 |
617.684.1511 |
|
Federal Realty Investment Trust |
|||||||
Consolidated Balance Sheets |
|||||||
March 31, 2017 |
|||||||
March 31, |
December 31, |
||||||
2017 |
2016 |
||||||
(in thousands, except share and per share data) |
|||||||
(unaudited) |
|||||||
ASSETS |
|||||||
Real estate, at cost |
|||||||
Operating (including $1,235,147 and $1,226,918 of consolidated variable interest entities, respectively) |
$ |
6,294,142 |
$ |
6,125,957 |
|||
Construction-in-progress |
687,356 |
599,260 |
|||||
Asset held for sale |
33,856 |
33,856 |
|||||
7,015,354 |
6,759,073 |
||||||
Less accumulated depreciation and amortization (including $217,449 and $209,239 of consolidated variable interest entities, respectively) |
(1,766,239) |
(1,729,234) |
|||||
Net real estate |
5,249,115 |
5,029,839 |
|||||
Cash and cash equivalents |
20,112 |
23,368 |
|||||
Accounts and notes receivable, net |
115,775 |
116,749 |
|||||
Mortgage notes receivable, net |
29,904 |
29,904 |
|||||
Investment in real estate partnerships |
14,540 |
14,864 |
|||||
Prepaid expenses and other assets |
226,754 |
208,555 |
|||||
TOTAL ASSETS |
$ |
5,656,200 |
$ |
5,423,279 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Liabilities |
|||||||
Mortgages payable (including $436,494 and $439,120 of consolidated variable interest entities, respectively) |
$ |
468,284 |
$ |
471,117 |
|||
Capital lease obligations |
71,582 |
71,590 |
|||||
Notes payable |
496,311 |
279,151 |
|||||
Senior notes and debentures |
1,977,192 |
1,976,594 |
|||||
Accounts payable and accrued expenses |
191,901 |
201,756 |
|||||
Dividends payable |
71,647 |
71,440 |
|||||
Security deposits payable |
16,499 |
16,285 |
|||||
Other liabilities and deferred credits |
144,979 |
115,817 |
|||||
Total liabilities |
3,438,395 |
3,203,750 |
|||||
Commitments and contingencies |
|||||||
Redeemable noncontrolling interests |
141,003 |
143,694 |
|||||
Shareholders' equity |
|||||||
Preferred shares, authorized 15,000,000 shares, $.01 par: 5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation preference $25 per share), 399,896 shares issued and outstanding |
9,997 |
9,997 |
|||||
Common shares of beneficial interest, $.01 par, 100,000,000 shares authorized, 72,236,981 and 71,995,897 shares issued and outstanding, respectively |
725 |
722 |
|||||
Additional paid-in capital |
2,736,921 |
2,718,325 |
|||||
Accumulated dividends in excess of net income |
(764,458) |
(749,734) |
|||||
Accumulated other comprehensive loss |
(1,493) |
(2,577) |
|||||
Total shareholders' equity of the Trust |
1,981,692 |
1,976,733 |
|||||
Noncontrolling interests |
95,110 |
99,102 |
|||||
Total shareholders' equity |
2,076,802 |
2,075,835 |
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
5,656,200 |
$ |
5,423,279 |
Federal Realty Investment Trust |
|||||||
Consolidated Income Statements |
|||||||
March 31, 2017 |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
2017 |
2016 |
||||||
(in thousands, except per share data) |
|||||||
(unaudited) |
|||||||
REVENUE |
|||||||
Rental income |
$ |
204,447 |
$ |
195,308 |
|||
Other property income |
2,190 |
2,312 |
|||||
Mortgage interest income |
752 |
724 |
|||||
Total revenue |
207,389 |
198,344 |
|||||
EXPENSES |
|||||||
Rental expenses |
41,109 |
42,819 |
|||||
Real estate taxes |
25,090 |
22,794 |
|||||
General and administrative |
8,267 |
8,010 |
|||||
Depreciation and amortization |
51,379 |
47,799 |
|||||
Total operating expenses |
125,845 |
121,422 |
|||||
OPERATING INCOME |
81,544 |
76,922 |
|||||
Other interest income |
106 |
103 |
|||||
Interest expense |
(23,758) |
(23,729) |
|||||
Income from real estate partnerships |
— |
41 |
|||||
INCOME FROM CONTINUING OPERATIONS |
57,892 |
53,337 |
|||||
Gain on sale of real estate and change in control of interests |
178 |
25,726 |
|||||
NET INCOME |
58,070 |
79,063 |
|||||
Net income attributable to noncontrolling interests |
(1,880) |
(2,108) |
|||||
NET INCOME ATTRIBUTABLE TO THE TRUST |
56,190 |
76,955 |
|||||
Dividends on preferred shares |
(135) |
(135) |
|||||
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS |
$ |
56,055 |
$ |
76,820 |
|||
EARNINGS PER COMMON SHARE, BASIC |
|||||||
Continuing operations |
$ |
0.78 |
$ |
0.73 |
|||
Gain on sale of real estate and change in control of interests, net |
— |
0.37 |
|||||
$ |
0.78 |
$ |
1.10 |
||||
Weighted average number of common shares, basic |
71,862 |
69,771 |
|||||
EARNINGS PER COMMON SHARE, DILUTED |
|||||||
Continuing operations |
$ |
0.78 |
$ |
0.73 |
|||
Gain on sale of real estate and change in control of interests, net |
— |
0.37 |
|||||
$ |
0.78 |
$ |
1.10 |
||||
Weighted average number of common shares, diluted |
72,005 |
69,957 |
Federal Realty Investment Trust |
||||||||
Funds From Operations |
||||||||
March 31, 2017 |
||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2017 |
2016 |
|||||||
(in thousands, except per share data) |
||||||||
Funds from Operations available for common shareholders (FFO) |
||||||||
Net income |
$ |
58,070 |
$ |
79,063 |
||||
Net income attributable to noncontrolling interests |
(1,880) |
(2,108) |
||||||
Gain on sale of real estate and change in control of interests, net |
(70) |
(25,726) |
||||||
Depreciation and amortization of real estate assets |
44,682 |
41,728 |
||||||
Amortization of initial direct costs of leases |
4,684 |
4,204 |
||||||
Funds from operations |
105,486 |
97,161 |
||||||
Dividends on preferred shares |
(135) |
(135) |
||||||
Income attributable to operating partnership units |
784 |
855 |
||||||
Income attributable to unvested shares |
(340) |
(292) |
||||||
FFO |
$ |
105,795 |
$ |
97,589 |
||||
Weighted average number of common shares, diluted |
72,805 |
70,867 |
||||||
FFO per diluted share |
$ |
1.45 |
$ |
1.38 |
||||
Federal Realty Investment Trust |
|||||||
Reconciliation of FFO Guidance |
|||||||
March 31, 2017 |
|||||||
The following table provides a reconciliation of the range of estimated earnings per diluted share to estimated FFO per diluted share for the full year 2017. Estimates do not include the impact from potential acquisitions, potential dispositions, or land sale gains which have not closed as of May 3, 2017. |
|||||||
Full Year 2017 Guidance Range |
|||||||
Low |
High |
||||||
Estimated net income available to common shareholders, per diluted share |
$ |
3.35 |
$ |
3.43 |
|||
Adjustments: |
|||||||
Estimated gain on sale of real estate, net |
(0.25) |
(0.25) |
|||||
Estimated depreciation and amortization of real estate |
2.50 |
2.50 |
|||||
Estimated amortization of initial direct costs of leases |
0.24 |
0.24 |
|||||
Estimated FFO per diluted share |
$ |
5.85 |
$ |
5.93 |
|||
Note: |
|||||||
Individual items may not add up to total due to rounding. |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/federal-realty-investment-trust-announces-first-quarter-2017-operating-results-300450874.html
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