10-Q 1 form10q3q2022.htm FORM 10Q 3Q 2022

United States
Securities And Exchange Commission
Washington, DC 20549

Form 10-Q

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2022

OR

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from _____to_____

Commission File Number 1-12803

graphic

URSTADT BIDDLE PROPERTIES INC.
(Exact Name of Registrant as Specified in its Charter)

Maryland
04-2458042
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification Number)
   
321 Railroad Avenue, Greenwich CT
06830
(Address of principal executive offices)
(Zip Code)

Registrant's telephone number, including area code:  (203) 863-8200

N/A
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

Securities registered pursuant to Section 12(b) of the Act:

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes     No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes     No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
Accelerated filer 
   
Non-accelerated filer
Smaller reporting company
   
Emerging growth company
 
   

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes    No

As of September 5, 2022 (latest date practicable), the number of shares of the Registrant's classes of Common Stock and Class A Common Stock outstanding was: 10,262,829 Common Shares, par value $.01 per share, and 29,853,839 Class A Common Shares, par value $.01 per share.






Index
 
Urstadt Biddle Properties Inc.
   
   
   
Part I. Financial Information
 
   
Item 1.
Financial Statements (Unaudited)
 
     
 
1
     
 
2
     
 
3
     
 
4
     
 
5
     
 
9
     
Item 2.
23
     
Item 3.
33
     
Item 4.
34
     
     
Part II. Other Information
 
     
Item 1.
35
     
Item 2.
36
     
Item 6.
37
     
38


URSTADT BIDDLE PROPERTIES INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

 
July 31, 2022
   
October 31, 2021
 
   
(Unaudited)
       
Assets
           
Real Estate Investments:
           
Real Estate– at cost
 
$
1,185,415
   
$
1,148,382
 
Less: Accumulated depreciation
   
(296,979
)
   
(278,605
)
     
888,436
     
869,777
 
Investments in and advances to unconsolidated joint ventures
   
28,252
     
29,027
 
     
916,688
     
898,804
 
                 
Cash and cash equivalents
   
12,170
     
24,057
 
Tenant receivables-net
   
23,916
     
23,806
 
Prepaid expenses and other assets
   
28,740
     
19,175
 
Deferred charges, net of accumulated amortization
   
8,810
     
8,010
 
Total Assets
 
$
990,324
   
$
973,852
 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
                 
Liabilities:
               
Revolving credit line
 
$
10,000
   
$
-
 
Mortgage notes payable and other loans
   
304,315
     
296,449
 
Accounts payable and accrued expenses
   
9,870
     
11,443
 
Deferred compensation – officers
   
53
     
62
 
Other liabilities
   
23,711
     
22,599
 
Total Liabilities
   
347,949
     
330,553
 
                 
Redeemable Noncontrolling Interests
   
63,243
     
67,395
 
                 
Commitments and Contingencies
   
     
 
                 
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
 
5.875% Series K Cumulative Preferred Stock (liquidation preference of $25 per share); 4,400,000 shares issued and outstanding
   
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; 10,264,027 and 10,153,689 shares issued and outstanding
   
104
     
103
 
Class A Common Stock, par value $0.01 per share; 100,000,000 shares authorized; 29,899,364 and 30,073,807 shares issued and outstanding
   
300
     
301
 
Additional paid in capital
   
525,873
     
528,713
 
Cumulative distributions in excess of net income
   
(177,103
)
   
(170,493
)
Accumulated other comprehensive income (loss)
   
4,958
     
(7,720
)
Total Stockholders' Equity
   
579,132
     
575,904
 
Total Liabilities and Stockholders' Equity
 
$
990,324
   
$
973,852
 

The accompanying notes to consolidated financial statements are an integral part of these statements.

1

URSTADT BIDDLE PROPERTIES INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data)
 
Nine Months Ended
July 31,
   
Three Months Ended
July 31,
 
   
2022
   
2021
   
2022
   
2021
 
                         
Revenues
                       
Lease income
 
$
102,636
   
$
97,329
   
$
33,893
   
$
33,051
 
Lease termination
   
691
     
801
     
631
     
96
 
Other
   
3,712
     
3,403
     
960
     
1,183
 
Total Revenues
   
107,039
     
101,533
     
35,484
     
34,330
 
                                 
Expenses
                               
Property operating
   
18,915
     
17,733
     
5,514
     
5,284
 
Property taxes
   
17,787
     
17,785
     
5,976
     
6,009
 
Depreciation and amortization
   
22,360
     
21,773
     
7,644
     
7,063
 
General and administrative
   
7,673
     
6,876
     
2,485
     
2,139
 
Directors' fees and expenses
   
283
     
277
     
82
     
79
 
Total Operating Expenses
   
67,018
     
64,444
     
21,701
     
20,574
 
                                 
Operating Income
   
40,021
     
37,089
     
13,783
     
13,756
 
                                 
Non-Operating Income (Expense):
                               
Interest expense
   
(9,750
)
   
(10,062
)
   
(3,186
)
   
(3,329
)
Equity in net income from unconsolidated joint ventures
   
814
     
1,025
     
224
     
365
 
Gain (loss) on sale of property
   
768
     
12,214
     
-
     
11,808
 
Interest, dividends and other investment income
   
216
     
171
     
103
     
75
 
Net Income
   
32,069
     
40,437
     
10,924
     
22,675
 
                                 
Noncontrolling interests:
                               
Net income attributable to noncontrolling interests
   
(2,695
)
   
(2,724
)
   
(881
)
   
(887
)
Net income attributable to Urstadt Biddle Properties Inc.
   
29,374
     
37,713
     
10,043
     
21,788
 
Preferred stock dividends
   
(10,238
)
   
(10,238
)
   
(3,413
)
   
(3,413
)
                                 
Net Income Applicable to Common and Class A Common Stockholders
 
$
19,136
   
$
27,475
   
$
6,630
   
$
18,375
 
                                 
Basic Earnings Per Share:
                               
Per Common Share:
 
$
0.45
   
$
0.65
   
$
0.16
   
$
0.44
 
Per Class A Common Share:
 
$
0.50
   
$
0.73
   
$
0.17
   
$
0.48
 
                                 
Diluted Earnings Per Share:
                               
Per Common Share:
 
$
0.45
   
$
0.64
   
$
0.15
   
$
0.43
 
Per Class A Common Share:
 
$
0.50
   
$
0.72
   
$
0.17
   
$
0.48
 
                                 
Dividends Per Share:
                               
 Common
 
$
0.6435
   
$
0.457
   
$
0.2145
   
$
0.207
 
  Class A Common
 
$
0.7125
   
$
0.51
   
$
0.2375
   
$
0.23
 

The accompanying notes to consolidated financial statements are an integral part of these statements.

2

URSTADT BIDDLE PROPERTIES INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(In thousands)

 
Nine Months Ended
July 31,
   
Three Months Ended
July 31,
 
   
2022
   
2021
   
2022
   
2021
 
                         
Net Income
 
$
32,069
   
$
40,437
   
$
10,924
   
$
22,675
 
                                 
Other comprehensive income (loss):
                               
Change in unrealized gains (losses) on interest rate swaps
   
11,522
     
3,588
     
(2,169
)
   
(1,418
)
Change in unrealized gains (losses) on interest rate swaps-equity investees
   
1,156
     
530
     
(347
)
   
(197
)
                                 
Total comprehensive income
   
44,747
     
44,555
     
8,408
     
21,060
 
Comprehensive income attributable to noncontrolling interests
   
(2,695
)
   
(2,724
)
   
(881
)
   
(887
)
                                 
Total comprehensive income attributable to Urstadt Biddle Properties Inc.
   
42,052
     
41,831
     
7,527
     
20,173
 
Preferred stock dividends
   
(10,238
)
   
(10,238
)
   
(3,413
)
   
(3,413
)
Total comprehensive income applicable to Common and Class A Common Stockholders
 
$
31,814
   
$
31,593
   
$
4,114
   
$
16,760
 

The accompanying notes to consolidated financial statements are an integral part of these statements.

3

URSTADT BIDDLE PROPERTIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
 
Nine Months Ended
July 31,
 
   
2022
   
2021
 
Cash Flows from Operating Activities:
           
Net income
 
$
32,069
   
$
40,437
 
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
   
22,360
     
21,773
 
Straight-line rent adjustment
   
48
     
2,702
 
Provision for tenant credit losses
   
238
     
3,261
 
(Gain)/loss on sale of property
   
(768
)
   
(12,214
)
Restricted stock compensation expense and other adjustments
   
2,652
     
2,932
 
Deferred compensation arrangement
   
(9
)
   
28
 
Equity in net (income) of unconsolidated joint ventures
   
(814
)
   
(1,025
)
Distributions of operating income from unconsolidated joint ventures
   
814
     
1,025
 
Changes in operating assets and liabilities:
               
Tenant receivables
   
(395
)
   
(3,328
)
Accounts payable and accrued expenses
   
4,021
     
3,930
 
Other assets and other liabilities, net
   
(2,911
)
   
(5,057
)
Net Cash Flow Provided by Operating Activities
   
57,305
     
54,464
 
                 
Cash Flows from Investing Activities:
               
Acquisitions of real estate investments
   
(35,671
)
   
-
 
Proceeds from sale of property
   
4,400
     
16,707
 
Purchase of available for sale securities
   
-
     
(645
)
Improvements to properties and deferred charges
   
(10,023
)
   
(13,503
)
Investment in note receivable
   
409
     
(1,546
)
Return of capital from unconsolidated affiliates
   
1,740
     
362
 
Net Cash Flow Provided by/(Used in) Investing Activities
   
(39,145
)
   
1,375
 
                 
Cash Flows from Financing Activities:
               
Dividends paid -- Common and Class A Common Stock
   
(28,038
)
   
(20,003
)
Dividends paid -- Preferred Stock
   
(10,238
)
   
(10,238
)
Principal amortization repayments on mortgage notes payable
   
(5,312
)
   
(5,179
)
Repayment of mortgage note payable
   
(32,412
)
   
-
 
Proceeds from mortgage note payable
   
46,000
     
-
 
Proceeds from revolving credit facility
   
20,000
     
-
 
Repayment of revolving credit facility
   
(10,000
)
   
(30,000
)
Acquisitions of noncontrolling interests
   
(1,860
)
   
(4,566
)
Distributions to noncontrolling interests
   
(2,695
)
   
(2,724
)
Payment of taxes on shares withheld for employee taxes
   
(590
)
   
(320
)
Repurchase of Common and Class A Common stock
   
(5,049
)
   
(717
)
Net proceeds from the issuance of Common and Class A Common Stock
   
147
     
104
 
Net Cash Flow (Used in) Financing Activities
   
(30,047
)
   
(73,643
)
                 
Net Increase/(Decrease) In Cash and Cash Equivalents
   
(11,887
)
   
(17,804
)
Cash and Cash Equivalents at Beginning of Period
   
24,057
     
40,795
 
                 
Cash and Cash Equivalents at End of Period
 
$
12,170
   
$
22,991
 
                 
Supplemental Cash Flow Disclosures:
               
Interest Paid
 
$
9,282
   
$
9,944
 

The accompanying notes to consolidated financial statements are an integral part of these statements.

4

URSTADT BIDDLE PROPERTIES INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED)
Nine Months Ended July 31, 2022 and 2021
(In thousands, except share and per share data)

 
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, 2021
   
4,600,000
   
$
115,000
     
4,400,000
   
$
110,000
     
10,153,689
   
$
103
     
30,073,807
   
$
301
   
$
528,713
   
$
(170,493
)
 
$
(7,720
)
 
$
575,904
 
Net income applicable to Common and Class A common stockholders
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
19,136
     
-
     
19,136
 
Change in unrealized gains on interest rate swap
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
12,678
     
12,678
 
Cash dividends paid :
                                                                                               
Common stock ($0.6435 per share)
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(6,605
)
   
-
     
(6,605
)
Class A common stock ($0.7125 per share)
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(21,433
)
   
-
     
(21,433
)
Issuance of shares under dividend reinvestment plan
   
-
     
-
     
-
     
-
     
2,711
     
-
     
5,485
     
-
     
147
     
-
     
-
     
147
 
Shares issued under restricted stock plan
   
-
     
-
     
-
     
-
     
109,500
     
1
     
149,000
     
1
     
(2
)
   
-
     
-
     
-
 
Shares withheld for employee taxes
   
-
     
-
     
-
     
-
     
-
     
-
     
(27,680
)
   
-
     
(590
)
   
-
     
-
     
(590
)
Forfeiture of restricted stock
   
-
     
-
     
-
     
-
     
-
     
-
     
(36,300
)
   
-
     
-
     
-
     
-
     
-
 
Repurchase of Common and Class A Common stock
   
-
     
-
     
-
     
-
     
(1,873
)
   
-
     
(264,948
)
   
(2
)
   
(5,047
)
   
-
     
-
     
(5,049
)
Restricted stock compensation and other adjustments
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
2,652
     
-
     
-
     
2,652
 
Adjustments to redeemable noncontrolling interests
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
2,292
     
-
     
2,292
 
Balances - July 31, 2022
   
4,600,000
   
$
115,000
     
4,400,000
   
$
110,000
     
10,264,027
   
$
104
     
29,899,364
   
$
300
   
$
525,873
   
$
(177,103
)
 
$
4,958
   
$
579,132
 
5



 
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, 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
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
27,475
     
-
     
27,475
 
Change in unrealized losses on interest rate swap
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
4,118
     
4,118
 
Cash dividends paid :
                                                                                               
Common stock ($0.457per share)
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(4,652
)
   
-
     
(4,652
)
Class A common stock ($0.51 per share)
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(15,351
)
   
-
     
(15,351
)
Issuance of shares under dividend reinvestment plan
   
-
     
-
     
-
     
-
     
2,506
     
-
     
3,874
     
-
     
104
     
-
     
-
     
104
 
Shares issued under restricted stock plan
   
-
     
-
     
-
     
-
     
105,850
     
1
     
125,800
     
1
     
(2
)
   
-
     
-
     
-
 
Shares withheld for employee taxes
   
-
     
-
     
-
     
-
     
-
     
-
     
(23,249
)
   
-
     
(319
)
   
-
     
-
     
(319
)
Forfeiture of restricted stock
   
-
     
-
     
-
     
-
     
-
     
-
     
(400
)
   
-
     
-
     
-
             
-
 
Repurchase of Common and Class A Common stock
   
-
     
-
     
-
     
-
     
(20,294
)
   
-
     
(20,294
)
   
-
     
(717
)
   
-
     
-
     
(717
)
Restricted stock compensation and other adjustments
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
2,931
     
-
     
-
     
2,931
 
Adjustments to redeemable noncontrolling interests
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(9,891
)
   
-
     
(9,891
)
Balances - July 31, 2021
   
4,600,000
   
$
115,000
     
4,400,000
   
$
110,000
     
10,161,714
   
$
103
     
30,082,036
   
$
301
   
$
528,024
   
$
(167,070
)
 
$
(11,589
)
 
$
574,769
 

The accompanying notes to consolidated financial statements are an integral part of these statements
6


URSTADT BIDDLE PROPERTIES INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED)
Three Months Ended July 31, 2022 and 2021
(In thousands, except share and per share data)

 
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 - April 30, 2022
   
4,600,000
   
$
115,000
     
4,400,000
   
$
110,000
     
10,264,968
   
$
104
     
30,162,196
   
$
302
   
$
529,845
   
$
(175,031
)
 
$
7,474
   
$
587,694
 
Net income applicable to Common and Class A common stockholders
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
6,630
     
-
     
6,630
 
Change in unrealized gains on interest rate swap
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(2,516
)
   
(2,516
)
Cash dividends paid :
                                                                                               
Common stock ($0.2145 per share)
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(2,202
)
   
-
     
(2,202
)
Class A common stock ($0.2375 per share)
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(7,164
)
   
-
     
(7,164
)
Issuance of shares under dividend reinvestment plan
   
-
     
-
     
-
     
-
     
932
     
-
     
2,116
     
-
     
50
     
-
     
-
     
50
 
Forfeiture of restricted stock
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
 
Repurchase of Common and Class A Common stock
                                   
(1,873
)
   
-
     
(264,948
)
   
(2
)
   
(5,047
)
                   
(5,049
)
Restricted stock compensation and other adjustments
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
1,025
     
-
     
-
     
1,025
 
Adjustments to redeemable noncontrolling interests
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
664
     
-
     
664
 
Balances - July 31, 2022
   
4,600,000
   
$
115,000
     
4,400,000
   
$
110,000
     
10,264,027
   
$
104
     
29,899,364
   
$
300
   
$
525,873
   
$
(177,103
)
 
$
4,958
   
$
579,132
 

7


 
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 - 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
 
Net income applicable to Common and Class A common stockholders
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
18,375
     
-
     
18,375
 
Change in unrealized losses on interest rate swap
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(1,616
)
   
(1,616
)
Cash dividends paid :
                                                                                               
Common stock ($0.207 per share)
   
-