NORTH MIAMI BEACH-Locally based shopping center REIT Equity One Inc. reported net income of $14.1 million for the third quarter, a drop from last year's third quarter figure of $28 million, company officials reported during a conference call Wednesday.
Much of the conference call was devoted to discussion of personnel changes at the company. During 3Q, the company experienced several major changes with respect to its management personnel. Two key executives, president and COO Doron Valero and executive vice president and CFO Howard Sipzner left the company. At the same time, incoming president and CEO Jeff Olson and incoming CFO Greg Andrews joined the firm, as GlobeSt.com previously reported.
"This quarter, more than ever, reflects the changes we've been going through," says chairman and CEO Chaim Katzman said during the conference call. "As far as our financial results, we have produced another strong quarter."
During the call, Olson said he has devised a plan for his first 100 days on the job. "This is my 58th day on the job, so I have 42 more days to execute my plan," Olson said. He listed five goals: to listen and learn, enhance the management team, define the company's challenges and opportunities, design a strategic plan for growth and execute the plan.
During Q3, the company renewed 114 leases totaling 380,667 sf and increased the average rental rate 6.1% to $11.52 per sf. Equity also signed 82 new leases totaling 414,193 sf at an average rental rate of $11.53 per sf, which reflects a 22% increase over prior rents on a same-store basis. At the end of the quarter, the company's portfolio was 95.1% occupied with an average base rent of $10.84 per leased sf.
During the quarter, the company acquired $60.4 million in properties including Milestone Plaza, Shoppes at Quail Roost and Coral Reef Shopping Center, as well as outparcels at the Pointe Royale and Westport shopping centers. During the quarter, the company sold $389.5 million in properties, including the sale of an 80% interest in 29 Texas properties.
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