NORTH MIAMI BEACH-Equity One Inc. closed the first quarter with increases in all financial measures. FFO rose 9.8%, and income from continuing operations increased 10.7% to $21.7 million, up from $19.6 million for the opening quarter of 2005.
The average rent rate on 109 lease renewals aggregating 406,938 sf was up 5.2%. The average rate for these leases is $11.23 per sf. The average rate among 85 new leases aggregating 264,789 sf reached $11.71 per sf, which represents a 5.8%-spread for new leases versus lost leases during this year's opening quarter. Occupancy in the locally based shopping center owner's core portfolio stood at 94.4% on March 31.
During a conference call, Chaim Katzman, chairman and CEO, alluded to one potential merger or buy-out and denied rumors about another. Of the company's continuing interest in Netherlands-based Dim Vastgoed, he said, Equity One's stake now represents 46.4% of total outstanding shares. This, plus a new director on Dim Vastgoed board and the termination of its current management contracts, "puts us in a much more favorable position."
Acknowledging another comment as "unusual," he said, "it's come to our attention that there are rumors of discussions with Heritage Properties." Calling the Towson, MD-based firm "a fine company with fine management," he said, "the rumors are just that. We're not in any discussions."
Equity One currently is under contract to buy $100 million in assets, Katzman said. These will join the $113 million in acquisitions to date this year.
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