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| 8-K - 8-K INVESTOR PRESENTATION JUNE 2021 - URSTADT BIDDLE PROPERTIES INC | 8kinvestpresjune2021.htm |
EXHIBIT 99.1
Investor Presentation June 2021
Forward-looking Statements and Non-GAAP Financial Measures Some of the statements in this presentation
constitute forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such statements can generally be identified by such words as “anticipate”, “believe”, “can”, “continue”,
“could”, “estimate”, “expect”, “intend”, “may”, “plan”, “seek”, “should”, “will” or variations of such words or other similar expressions and the negatives of such words. All statements included in this report that address activities, events
or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), business strategies, expansion
and growth of our operations and other such matters, are forward-looking statements. These statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current
conditions, expected future developments and other factors we believe are appropriate. Such statements are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might
not even be anticipated. Future events and actual results, performance or achievements, financial and otherwise, may differ materially from the results, performance or achievements expressed or implied by the forward-looking statements.
Risks, uncertainties and other factors that might cause such differences, some of which could be material, include, but are not limited to: negative impacts from the continued spread of COVID-19, including on the U.S. or global economy or on
our business, financial position or results of operations; economic and other market conditions, including real estate and market conditions, that could impact us, our properties or the financial stability of our tenants; consumer spending
and confidence trends, as well as our ability to anticipate changes in consumer buying practices and the space needs of tenants; our relationships with our tenants and their financial condition and liquidity; any difficulties in renewing
leases, filling vacancies or negotiating improved lease terms; the inability of our properties to generate increased, or even sufficient, revenues to offset expenses, including amounts we are required to pay to municipalities for real estate
taxes, payments for common area maintenance expenses at our properties and salaries for our management team and other employees; the market value of our assets and the supply of, and demand for, retail real estate in which we invest; risks of
real estate acquisitions and dispositions, including our ability to identify and acquire retail real estate that meet our investment standards in our markets, as well as the potential failure of transactions to close; risks of operating
properties through joint ventures that we do not fully control; financing risks, such as the inability to obtain debt or equity financing on favorable terms or the inability to comply with various financial covenants included in our Unsecured
Revolving Credit Facility (the "Facility") or other debt instruments we currently have or may subsequently obtain, as well as the level and volatility of interest rates, which could impact the market price of our common stock and the cost of
our borrowings; environmental risk and regulatory requirements; risks related to our status as a real estate investment trust, including the application of complex federal income tax regulations that are subject to change; legislative and
regulatory changes generally that may impact us or our tenants; as well as other risks identified in our Annual Report on Form 10-K for the fiscal year ended October 31, 2020 under Item 1A. Risk Factors and in the other reports filed by the
Company with the Securities and Exchange Commission (the “SEC”).This presentation may include references to certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP
measures can be found in the Company’s earnings press releases and SEC reports, which are available on our website at www.ubproperties.com.
Today’s Presenters John T. HayesSenior V.P. and Chief Financial Officer Willing L. BiddlePresident
and Chief Executive Officer
Company Overview ~84% of GLA anchored by grocery / pharmacy / wholesale club Strong balance sheet and
liquidity profile Attractive dividend yield (4.9% as of June 1, 2021) 80 properties with a total of 5.2 million Gross Leasable Area (GLA) Concentration on quality suburban markets outside New York City Valley Ridge Shopping Center, Wayne
NJ DeCicco’s Plaza, Eastchester NY The premier grocery anchored shopping center REIT in the suburban NY Metro Area
One of the strongest demographic profiles among public shopping center REITsThe median household income
within a 3-mile radius of UBA’s properties is ~69% higher than the national average median household income. This metric is one of the highest of all retail REITsHigh barrier to entry and high cost marketsLimited supply in the Company’s dense
and developed core markets Focused Portfolio In Suburban Tri-State Area County % of UBA GLA # Households Avg. household income Fairfield 33% 344,687 $154,055
Westchester 21% 356,232 159,264 Putnam 10% 35,031 145,821 Bergen 9% 344,059 153,494 Litchfield 6% 73,775 106,322 U.S. median $96,765 Percentage of Portfolio in Super Zips(a) Note: Demographics represent a 3-mile
radius of UBA properties. U.S. zip codes in the 95th percentile based on education and income based on property sq. ft.Source: SNL, Company data (21%) (4%) (10%) (33%) (<1%) (2%) (9%) (3%) (5%) (3%) (6%) (2%) (% of GLA)
Attractive Sub-Market Demographics Assets are located in affluent communities with high barriers to
entry and compelling demographics Note: Mean state household income represents 2021. UBA data as of April 30, 2021. Source: Company filings, SNL
Concentration In Strongest Leasing Markets Note: UBA data as of April 30, 2021. Peer data as of March
31, 2021. Source: Company filings Average Base Rent per Square Foot
October 12, 2020 October 19, 2020 Westchester County, NY, Median Home Sales Price January
14, 2021 Suburban Revival Due To COVID-19 Benefitting Our Communities Fairfield County, CT, Median Home Sales Price COVID-19 driving influx of affluent families and shoppers to our communities Source: The Wall Street Journal, Bloomberg,
Douglas Elliman Research Q1’21 YoY increase: +24% Q1’21 YoY increase: +11%
Strong Tenant Base – Focus on Grocery Anchored & Internet Resistant The portfolio currently
consists of ~84% supermarket / pharmacy / wholesale club anchored centers76% of ABR leased to internet resistant tenants Top Tenants Number of leases % of Total Annual Base Minimum
Rents 8 8.2% 10 4.7% 6 3.4% . 3 2.8% 4 2.6% 3 2.0% 3 1.6% 3 1.4% 2 1.2% 4 1.1% Total 46 29.0% Note: Top Tenants and Lease Expiration data as of April 30, 2021. Internet Resistance as of April 30,
2021. Leases include a lease with Bed Bath & Beyond, as well as separate leases with Christmas Tree Shops and Harmon Cosmetics.2021 figure represents lease expirations from November 1, 2020 to October 31, 2021 and month-to-month leases.
35% of leased square feet expiring in 2022 represent 4 grocery store leases with renewal options that we expect the tenants to exercise (52% of the 35% have been renewed), as well as the lease with Christmas Tree Shop that has been renewed.
49% of leased square feet expiring in 2023 represent 3 grocery store leases and one wholesale club with renewal options that we expect the tenants to exercise, as well as the lease with Bed Bath & Beyond that also has renewal
options. Lease Expiration Schedule(b,c) % of UBA Annual Base Rent (a)
Dividend Performance 205 uninterrupted quarterly dividend payments Sustainable payout ratio – 88%
average FFO payout ratio over last 10 years 51 consecutive years of uninterrupted dividends Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Change from Q1 2020 Current
yield UBP $0.25 $0.06 $0.13 $0.13 $0.13 $0.21(b) (18%) 5.4% UBA $0.28 $0.07 $0.14 $0.14 $0.14 $0.23(b) (18%) 4.9% WSR $0.29 $0.11 $0.11 $0.11 $0.11 $0.11 (62%) 5.2% BRX $0.29 Suspended
-- $0.22 $0.22 $0.22 (25%) 3.7% FRT $1.05 $1.05 $1.06 $1.06 $1.06 $1.06 1% 3.6% REG $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 0% 3.6% KRG $0.32 $0.05 $0.08 $0.15 $0.17 $0.18
(43%) 3.3% SITC $0.20 Suspended -- $0.05 $0.11 $0.12 (40%) 3.1% KIM $0.28 Suspended $0.10 $0.16 $0.17 $0.17 (39%) 3.1% UE $0.22 Suspended -- -- $0.15 $0.15 (32%) 3.0% AKR $0.29 Suspended
-- -- $0.15 $0.15 (48%) 2.7% ROIC $0.20 Suspended -- -- $0.11 $0.11 (45%) 2.4% RPT $0.22 Suspended -- -- $0.08 $0.08 (66%) 2.3% RPAI $0.17 Suspended $0.05 $0.06 $0.07 $0.07
(59%) 2.3% Recent Sector Dividend Summary(a) Strong Annual Dividend Growth (pre-COVID-19) The Company’s fiscal year is November 1st through October 31st. All other REITs presented in the table have calendar-based fiscal years.
Therefore, the dividend data presented for the Company reflects the fiscal quarter just completed, but paid or to be paid in the following quarter. For all other REITs, the dividend data presented reflects the fiscal quarter in which the
dividend was declared. Market data as of June 1, 2021.For the Company, the dividend data reflects common quarterly dividends only and is based on dividends announced on June 7, 2021 and to be paid in July 2021. For all other REITs presented,
dividend data is based on dividends declared in their second quarter. Source: Company filings, SNL
Company Update – Successful Navigation through COVID-19 Company has remained resilient through the
pandemic and has positioned itself to capitalize on the recoveryStrong leasing, collections and liquidity allow the Company to comfortably cover fixed costs, preferred dividends, and increased common dividends of consolidated portfolio
leased 90% of tenants open and operating 99.6% of ABR designated as an essential business 71% of total Q2 ‘21 base rent collected 92% of ABR granted abatement relief ~4% Key Statistics as of April 30, 2021 Steps Taken and
Strategy Seamlessly transitioned employees to remote working from March – May 2020Provided tenants ample resources and guidance through online portal to aid in accessing governmental financial support Launched program dedicating parking
spots for curbside pick-up for use by tenants and their customersEvaluate relief requests on case-by-case basis to arrive at optimal outcome for tenant and landlord “…our top priority is to work with all of our tenants to make sure their
businesses survive and thrive coming out the other side of this pandemic” – Willing Biddle
Portfolio CompositionABR Exposure by Category Portfolio Composition(% of ABR) Exposure by Category(%
of ABR) Note: As of April 30, 2021. Internet Resistant Potential Risk Higher Risk Internet Resistance
Operational UpdateTenant Operating Status Tenant Operations(% of ABR) Tenants Open by Category(% of
ABR) Note: As of April 30, 2021.
Operational UpdateTenant Composition and Collections Note: As of April 30, 2021. Base rent collections
as of June 1, 2021. Tenant Composition (% of ABR) Base Rent Collections (% of ABR)
Operational UpdateApril Base Rent Collections April Base Rent Collection April 2021 Base Rent
Collections by Category Note: As of April 30, 2021.
Operational UpdateConsolidated Portfolio Relief Agreements 78% Deferral Repayments by Year Relief
Request Progress (out of ~870 tenants) Note: As of April 30, 2021. Requests subsequently withdrawn Requests completed Deferral & Abatement Summary Average Deferral Term (months) 9.1 Total Deferred Rent ($mm) $3.8 Total Abated
Rent ($mm) $3.7 Deferrals: 3.9% of ABR Abatements:3.8% of ABR 9 274 Deferral repayments have been robust as tenants begin to recover85% collected from deferred rents due in the 12 months ended October 202094% collected from deferred
rents due in the 6 months ended April 2021
Key Elements of Urstadt’s Financial Strategy Maintain a conservative balance sheet with low leverage
and ample liquidityTotal debt to total assets of 33%(a)Fixed charge coverage ratio of 2.9x(b)Small mortgage rollover risk 2021: None2022: $50.9 million2023: NoneMatch long-term assets with long-term fixed rate debt or equity fundingMaintain
access to diverse sources of capital including:Short-term bank credit line increased to $125 million in capacity in fiscal 2021 ($175 million with accordion)Long-term non-recourse fixed rate mortgagesCommon and preferred equityMaintain stable
dividend with sustainable FFO payout ratio Total capitalization(c) Note: Market data as of June 1, 2021.Based on the current capitalization as of April 30, 2021.Based on results for the 6 months ended April 30, 2021. Pro forma for a $15
million partial repayment of the revolving credit line balance on May 17, 2021.
Long-Term Debt Maturity Schedule ($ in millions) Note: As of April 30, 2021. Includes unconsolidated
debt obligations.
Commitment to Corporate Responsibility At Urstadt Biddle Properties Inc., we are committed to
creating long-term value for our stockholders, while serving our communities, investing in our people and positively impacting the environment. Some of the activities undertaken by the Company include: Providing department-specific training,
access to online training seminars and opportunities to participate in industry conferences and UrstadtversityCommitment to the full inclusion of all qualified employees and applicantsFocusing on creating a workplace that values employee
health and safetyIntroducing the next generation of real estate leadersProviding annual reviews and regular feedback to assist in employee development Looking for opportunities to sponsor community-building events and contribute to the
vitality of the neighborhoods the Company servesRollout of curbside pickup at its shopping centers to enhance the safety of customers during the COVID-19 pandemicRegular inspections of shopping centers by its property managers to address any
potential safety issuesContributing to the local economy by partnering with local contractors on local projects when possible Maintaining and adhering to Corporate Governance GuidelinesRequiring vendors to complete a vendor questionnaire and
make key governance and operational representationsFocusing on cybersecurity, with oversight by the Board and circulation of quarterly updates on best practices to employeesAligning the interests of its executives and shareholders by
emphasizing long-term stock ownership and incentives in executive compensationMaintaining and adhering to the Company’s Code of Business Conduct and Ethics Striving to reduce the impact on climate change by reducing its carbon footprint
through the generation and use of solar powerMaintaining wetlands in accordance with regulatory guidanceHelping customers reduce their impact on climate change by making electric vehicle charging stations available at its
propertiesIncorporating best practices in water managementUsing native plants and pollinators at its properties Our People Our Communities Environmental Stewardship Ethics and Governance