Feldman Mall Properties, Inc. Reports First Quarter Financial Results.GREAT NECK, N.Y. -- Feldman Mall Properties, Inc. Conference Call to Discuss Results Will Be Held at 2:00 PM EST EST electroshock therapy. EST abbr. electroshock therapy , Thursday, May 12, 2005, Dial in: (800) 946-0783 or go to www.feldmanmall.com RELEASE HIGHLIGHTS --Reports first quarter FFO FFO See: Funds from operations of $0.18 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share --Entered into an agreement to acquire the Northgate Mall Northgate Mall may refer to:
Cincinnati is a city in the U.S. state of Ohio and the county seat of Hamilton County. for $110.0 million --Entered into an agreement to acquire the Tallahassee Mall located in Tallahassee, Florida For other uses, see Tallahassee (disambiguation). Tallahassee is the capital of the State of Florida and the county seat of Leon County. Tallahassee became the capital of Florida in 1824. As of 2006, the population recorded by the U.S. for $61.5 million --Acquired Colonie Center Colonie Center is a shopping mall located in Colonie, New York at the intersection of Central Avenue, Wolf Road, and Interstate 87. Opening in 1966, it was the first enclosed shopping mall in New York State's Capital Region. Mall located in Albany, New York For other uses, see Albany. Albany is the capital of the State of New York and the county seat of Albany County. Albany lies 136 miles (219 km) north of New York City, and slightly to the south of the juncture of the Mohawk and Hudson Rivers. for $82.2 million in February 2005 --Obtained a $75.0 million, 3-year mortgage on Stratford Square Mall  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. bearing interest at an all-in fixed rate of 5.0% per annum Per annum Yearly. --Executed a letter of intent with Century Theaters for a state of the art stadium seating multiplex See multiplexing. at Stratford Square Mall FINANCIAL RESULTS Feldman Mall Properties, Inc. (NYSE NYSE See: New York Stock Exchange :FMP FMP FileMaker Pro FMP Forest Management Plan FMP Full Metal Panic (anime) FMP Fixed Maturity Plan FMP Federación de Mujeres Progresistas (Spanish: Federation of Progressive Women) ) today reported Funds From Operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. ("FFO") totaling $2.4 million, or $0.18 per diluted share, for the first quarter ended March 31, 2005. The Company's net income, before minority interest, for the three months ended March 31, 2005 was $418,000 or $0.03 per diluted share. The Company had 13.8 million weighted average common shares and operating partnership units outstanding during the quarter. OPERATING RESULTS Foothills Mall Foothills Mall refers to multiple shopping centers in the United States of America:
Shop occupancy, excluding temporary tenants and anchor tenants, increased from 69.3% at March 31, 2004 to 83.4% at March 31, 2005. Including temporary tenants, shop occupancy as of March 31, 2004 was 86.4% versus 97.2% as of March 31, 2005. Average same store shop sales for the trailing twelve-month period ended March 31, 2005 increased to $296 per square foot as compared to $288 per square foot for the twelve month period ended March 31, 2004. Average same store shop sales increased 4.0% for the first quarter 2005 as compared to 2004. Total shop sales increased 18% for the first quarter 2005 as compared to the first quarter of 2004. Average shop rents per square foot, excluding temporary tenants, increased from $18.38 at March 31, 2004 to $18.76 at March 31, 2005. Harrisburg Mall - Harrisburg, Pennsylvania This article is about the capital city of the Commonwealth of Pennsylvania. For other places named Harrisburg, see Harrisburg (disambiguation). Harrisburg is the capital of the Commonwealth of Pennsylvania, a state of the United States of America. (Joint Venture Investment) Shop occupancy, excluding temporary tenants and anchor tenants, decreased from 71.4% at March 31, 2004 to 69.8% at March 31, 2005. Including temporary tenants, shop occupancy as of March 31, 2004 was 79.7% versus 76.6% as of March 31, 2005. As a result of anchor tenant leasing, the mall's overall occupancy increased to 91.8% at March 31, 2005 from 49.3% at March 31, 2004. Average same store shop sales period for the trailing twelve-month period ended March 31, 2005 decreased to $234 per square foot as compared to $241 per square foot for the trailing twelve month period ended March 31, 2004. Average same store shop sales increased 31.4% for the first quarter 2005 as compared to 2004. Total shop sales increased 18.9% for the first quarter 2005 as compared to the first quarter of 2004. Average shop rents, excluding temporary tenants, increased to $18.81 per square foot at March 31, 2005 from $18.04 per square foot at March 31, 2004. Colonie Center Mall - Albany, New York Shop occupancy, excluding temporary tenants and anchor tenants, was 65.6% at March 31, 2005. Including temporary tenants, shop occupancy as of March 31, 2005 was 79.1%. Average shop sales were $274 per square foot for the trailing twelve month period ended March 31, 2005. Average shop rents, excluding temporary tenants, were $23.68 per square foot at March 31, 2005. Stratford Square Mall - Bloomingdale, Illinois Bloomingdale is a village in DuPage County, Illinois, United States, approximately 25 miles west of Chicago. The population was 21,675 at the 2000 census. Points of Interest Shop occupancy, excluding temporary tenants and anchor tenants, was 67.7% at March 31, 2005. Including temporary tenants, the occupancy as of March 31, 2005 was 84.2%. Average shop sales were $266 per square foot for the trailing twelve month period ended March 31, 2005. Average shop rents, excluding temporary tenants, were $22.04 per square foot at March 31, 2005. REAL ESTATE ACTIVITY Tallahassee Mall - Tallahassee, Florida On May 5, 2005 the Company announced the signing of a purchase contract to acquire Tallahassee Mall, a 963,000 square foot enclosed en·close also in·close tr.v. en·closed, en·clos·ing, en·clos·es 1. To surround on all sides; close in. 2. To fence in so as to prevent common use: enclosed the pasture. regional mall located in Tallahassee, the state capital of Florida Noun 1. capital of Florida - capital of the state of Florida; located in northern Florida Tallahassee Everglade State, FL, Florida, Sunshine State - a state in southeastern United States between the Atlantic and the Gulf of Mexico; one of the Confederate . The purchase contract is subject to the completion of customary real estate contractual requirements. In addition, the purchase contract is subject to the approval of the assumption of the existing mortgage loan by the Company. The purchase price of $61.5 million includes the assumption of the existing mortgage loan of approximately $45.3 million plus cash in the amount of approximately $16.2 million. The property is subject to a long term ground lease that expires in the year 2063 (assuming the exercise of an extension option). The Company is acquiring all of the anchors and shops. The Mall's four major anchor tenants are AMC (Advanced Mezzanine Card) See AdvancedTCA. Theaters, the only 20-screen stadium seating theater in the Tallahassee market, Dillard's, Parisian and Burlington Coat Factory Burlington Coat Factory Warehouse Corporation is a national department store retailer focusing on clothing and shoes, with over 360 stores in 42 states (as of 2006). In early 2007, the first location to be opened in Canada will be at the Vaughan Mills mall in Toronto. . In addition, the Mall contains a remarkably strong roster of seven "big box" junior anchor tenants: Old Navy, Sports Authority Sports Authority is the USA's largest full line sporting goods retailer. The company is headquartered in Englewood, Colorado. It operates over 400 stores in 45 U.S. states under the Sports Authority name. Total sales for the fiscal year ending January 29 2005 were $2.44 billion. , Goody's, Ross Dress for Less, Shoe Carnival Shoe Carnival is a retailer of family footwear in the United States. The company operates over 250 stores throughout the midwest, south, and southeast regions. It was founded by David Russell in 1978 and is headquartered in Evansville, Indiana. , Barnes & Noble and Guitar Center. Excluding anchor tenants and temporary tenants, the shop occupancy at Tallahassee Mall is 68.4%. Including temporary tenants, the shop occupancy is 84.8%. The sales trends at Tallahassee Mall are positive with shop sales growing around 6% per annum and averaging about $325 per square foot. Northgate Mall - Cincinnati, Ohio On May 2, 2005, the Company announced the signing of a purchase contract to acquire Northgate Mall, a 1.1 million square foot enclosed regional mall located in the northwest suburbs of Cincinnati, Ohio. The purchase contract is subject to the completion of customary real estate contractual requirements and is also subject to the lender's consent of the Company's assumption of an existing mortgage loan. The purchase price of $110.0 million includes the assumption of the existing mortgage loan in the approximate amount of $79.6 million plus cash in the amount of approximately $30.4 million dollars. Northgate Mall, located in Colerain Township Colerain Township may refer to:
Colonie Center Mall - Albany, New York On February 2, 2005, the Company announced the purchase of the Colonie Center Mall, located in Albany, New York, for $82.2 million dollars. The 1.2 million square foot, two-level shopping mall is situated in the heart of New York's Capital region and minutes from the Albany International Airport "KALB" redirects here. For the television station in Alexandria, Louisiana, see KALB-TV. For the Arabic word, see kalb (term). Albany International Airport (IATA: ALB, ICAO: KALB) is an airport of entry [1] serving Albany, New York. and major hotel chains. Anchor tenants include Macy's and Sears (un-owned anchor spaces 1. (Billiards) In the balk-line game, any of eight spaces, 7 inches by 3½, lying along a cushion and bisected transversely by a balk line. Object balls in an anchor space are treated as in balk. ), Boscov's and Christmas Tree Shops Christmas Tree Shops are a chain of stores that started in Yarmouthport, Massachusetts on Cape Cod in 1970 as a complex of three small stores; the Front Shop, the Back Shop, and the Barn Shop. (a subsidiary of Bed, Bath and Beyond). In addition, junior anchor tenants include F.Y.E and Steve & Barry's. FINANCING ACTIVITY Mortgage Financing In January 2005, the Company completed a $75.0 million, three-year first mortgage financing collateralized by the Stratford Square Mall. The mortgage bears interest at a rate of LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 125 basis points and has two one-year extensions. The initial loan to cost is approximately 80%, however once the intended capital improvements of approximately $20 million are complete, the total leverage is expected to decrease to approximately 65% of total anticipated cost. Forward Swap Forward Swap A swap agreement created through the synthesis of two swaps differing in duration for the purpose of fulfilling the specific time-frame needs of an investor. Also referred to as a "forward start swap," "delayed start swap," and a "deferred start swap. Contract In connection with the Stratford Square Mall financing, during January 2005, the Company entered into a $75.0 million swap commencing February 2005 with an all-in-rate of 5.0% and a final maturity in January 2008. The effect of the swap is to fix the interest rate on the Stratford Square Mall mortgage at 5.0% through January 2008. Common Stock Issuance On January 11, 2005, the Company completed the sale of 1.6 million shares of common stock at $13.00 per share pursuant to the full exercise of the underwriter's over allotment A portion, share, or division. The proportionate distribution of shares of stock in a corporation. The partition and distribution of land. ALLOTMENT. Distribution by lot; partition. Merl. Rep. h.t. option in connection with the Company's initial public offering. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). received by the Company from the over allotment totaled $19.3 million, resulting in net proceeds of $144.1 million from the initial public offering. Earnings Guidance The Company's first quarter FFO results of $0.18 per diluted share exceeded the high end of the Company's previous guidance by $0.01. Based upon the assumption that the Northgate Mall and the Tallahassee Mall (the "New Acquisitions") will be acquired after the second quarter, the Company is guiding to a range of $0.19 to $0.21 per diluted share for the second quarter of 2005. Earnings for the third and fourth quarters of 2005 may be affected by the ultimate timing of the closing of the New Acquisitions. Conference Call The Company's executive management team, led by Larry Feldman, Chief Executive Officer, will host a conference call and audio web cast on Thursday, May 12, 2005 at 2:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. to discuss the financial results. The conference call may be accessed by dialing (800) 946-0783. No pass code is required. The live conference will be simultaneously broadcast in a listen-only mode on the Company's website at www.feldmanmall.com. A replay of the call will be available through May 18, 2005 by dialing (888) 203-1112 using pass code 9912541, or you may access the replay via the Company's web site. Non-GAAP Financial Measures Feldman Mall Properties, Inc., consistent with real estate industry and investment community preferences, uses Funds From Operations, or FFO, as a supplemental measure of operating performance. The National Association of Real Estate Investment Trusts (NAREIT NAREIT National Association of Real Estate Investment Trusts ) defines FFO as net income (loss) (computed in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), excluding gains (or losses) from cumulative effects of accounting changes, extraordinary items and sales of depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. properties, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. The Company considers FFO a supplemental measure for equity REITs Equity REIT A Real Estate Investment Trust that assumes ownership status in the property it invests in enabling investors of the REIT to earn dividends on rental income from the property and appreciation in property resale. Antithesis of a Mortgage REIT. and a complement to GAAP measures because it facilitates an understanding of the operating performance of the Company's properties. FFO does not give effect to real estate depreciation and amortization since these amounts are computed to allocate To reserve a resource such as memory or disk. See memory allocation. the cost of a property over its useful life. Since values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, the Company believes that FFO provides investors with a clearer view of the Company's operating performance. In order to provide a better understanding of the relationship with FFO and GAAP net income, a reconciliation of FFO to GAAP net income has been provided. FFO does not represent cash flow from operating activities in accordance with GAAP, should not be considered as an alternative to GAAP net income and is not necessarily indicative of cash available to fund cash needs. During the May 12, 2005 conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measure and the comparable GAAP financial measure (net income) can be found on page 7 of this release. Feldman Mall Properties, Inc. acquires, renovates and repositions enclosed retail shopping malls. Feldman Mall Properties Inc.'s investment strategy is to opportunistically acquire underperforming malls and transform them into physically attractive and profitable Class A or near Class A malls through comprehensive renovation and re-tenanting efforts aimed at increasing shopper traffic and tenant sales. For more information on Feldman Mall Properties Inc., visit the Company's website at www.feldmanmall.com. Upon completion of the acquisition of the Tallahassee Mall and the Northgate Mall, the Company's portfolio, including non-owned anchor tenants, will consist of six regional malls aggregating approximately 6.2 million square feet. To receive the Company's latest news release and other corporate documents, please contact the Company at (516) 684-1239. All releases and supplemental data can also be downloaded directly from the Feldman Mall Properties website at: www.FeldmanMall.com. Forward-looking Information This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties regarding various matters, including without limitation the success of our business strategy, including our acquisition, renovation and repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. plans; our ability to close pending acquisitions and the timing of those acquisitions; our ability to obtain required financing; our understanding of our competition; market trends; our ability to implement our repositioning plans on time and within our budgets; projected capital and renovation expenditures; demand for shop space and the success of our lease-up plans; availability and creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. of current and prospective tenants; and lease rates and terms. The forward-looking statements are based on our assumptions and current expectations of future performance. These assumptions and expectations may be inaccurate or may change as a result of many possible events or factors, not all of which are known to us. If there is any inaccuracy in·ac·cu·ra·cy n. pl. in·ac·cu·ra·cies 1. The quality or condition of being inaccurate. 2. An instance of being inaccurate; an error. or change, actual results may vary materially from our forward-looking statements.
FELDMAN MALL PROPERTIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
-----------------------
March 31, December 31,
(Amounts In Thousands) 2005 2004
-----------------------
(unaudited)
Assets:
Investments in real estate, net $223,487 $143,653
Investment in unconsolidated real estate
partnership 5,106 5,150
Cash and cash equivalents 19,015 15,607
Restricted cash 5,788 4,555
Rents, deferred rents and other receivables,
net 3,604 1,921
Acquired lease rights, net 7,509 4,167
Acquired in-place lease value, net 13,656 11,504
Deferred charges, net 1,569 675
Other assets 3,234 1,551
-----------------------
Total Assets $282,968 $188,783
=======================
Liabilities and Stockholders' Equity:
Mortgages and other loans payable $129,750 $54,750
Due to affiliates 8,996 12,941
Accounts payable, accrued expenses and other
liabilities 7,679 7,862
Dividends and distributions payable 3,778 --
Acquired lease obligation, net 7,467 4,737
-----------------------
Total liabilities 157,670 80,290
Minority interest 13,585 13,962
Stockholders' Equity
Common stock 124 108
Additional paid-in capital 114,952 95,672
Retained deficit (4,232) (1,249)
Accumulated other comprehensive income 869 --
-----------------------
Total stockholders' equity 111,713 94,531
-----------------------
Total Liabilities and Stockholders' Equity $282,968 $188,783
=======================
FELDMAN MALL PROPERTIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except Per Share Data)
(Unaudited)
March 31,
-------------------------
2005 2004
-------------------------
(The (The
Company) Predecessor)
Revenue:
Rental $5,950 $1,784
Tenant reimbursements 3,188 1,226
Management, leasing and development
services 151 233
Interest and other income 283 182
-------------------------
Total Revenue 9,572 3,425
-------------------------
Expenses:
Rental property operating and maintenance 3,049 913
Real estate taxes 1,165 340
Interest 1,649 1,083
Depreciation and amortization 1,878 399
General and administrative 1,369 419
-------------------------
Total Expenses 9,110 3,154
-------------------------
Equity in (loss)/earnings of unconsolidated
real estate partnership (44) 82
-------------------------
Income before minority interest 418 353
Minority interest 48 184
-------------------------
Net Income $370 $169
=========================
Basic and diluted income per share $0.03
============
Basic weighted average common shares
outstanding 12,216
============
Diluted weighted average common shares and
common share equivalents outstanding 13,809
============
Funds From Operations (FFO) Calculation:
----------------------------------------
Net income $370
Add:
----
Minority interest 48
Depreciation and amortization 1,878
Joint venture FFO adjustment 164
Less:
-----
Depreciation of non-real estate assets (34)
------------
FFO, before minority interest $2,426
============
FFO per share (diluted) $0.18
============
Ownership interests:
--------------------
Weighted average REIT common shares for basic
net income per share 12,216
Weighted average partnership units held by
minority interests 1,593
------------
Weighted average shares and units outstanding 13,809
------------
(A) - The 2004 results represents the operations of Feldman Equities
of Arizona, LLC, the predecessor entity prior to the Company's
December 2004 initial public offering.
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