Equity One Reports Strong Financials for Quarter and First Half

For the quarter, the REIT posted total revenue of $24 million, up 31.8%; net income of $8.4 million, up 123.5%; 25 cents net income per diluted share, up 31.6%; funds from operations of $11.1 million, up 73.2%; and 33 cents FFO per diluted share, up 6.5% over the same 2001 period.

For the half, Equity One booked revenue of $49.9 million, up 34.8%; net income of $21.7 million, up 178.3%; 68 cents net income per diluted share, up 74.4%; funds from operations of $21.9 million, up 64%; and 68 cents FFO per diluted share, up 4.6% from the first six months of last year.

The REIT spent $50 million to buy five supermarket-anchored centers at an aggregate yield of 10% and also purchased one retail development site. Equity One also bought Centrefund Realty (U.S.) Corp. and United Investors Realty Trust in the second quarter.

The acquisitions "increased Equity One's supermarket-anchored category to 70% of total square footage; lengthened the average term on our supermarket leases to 11.8 years; and increased the supermarket anchor component of total annual minimum rent to 17%," company chairman/CEO Chaim Katzman says in a prepared statement.

In the second quarter, Equity One renewed 85 leases and increased the associated average rental rate per sf by 4.5% to $12.06 from $11.54.

"Overall, we retained 77.5% of the 271,000 sf up for renewal this quarter; had net positive absorption of over 77,000 sf; and improved our occupancy on June 30 to 87.6% from 86.8% on March 31," Katzman says.

On the financial front, the company closed the quarter with a 41% debt-to-total market capitalization and a 3.0 EBITDA coverage ratio. "Only 17% of our debt wass subject to variable interest rates," Katzman says.