Equity One Inc. (EQY) Wednesday reported an increased second-quarter FFO, including certain unusual gains. Based on the results, the company reaffirmed its fiscal 2009 outlook.
The company reported funds from operations of $29.1 million or $0.34 per share for the second quarter, compared to $23.2 million or $0.32 per share in the prior year quarter. The quarterly results included gains of $3.5 million, or $0.04 per diluted share, from the early extinguishment of debt, and $3.6 million, or $0.04 per diluted share, of gains on the sale of outparcels.
On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.31 per share for the second quarter. Analysts' estimates typically exclude special items.
Net income attributable to Equity One fell to $15.4 million or $0.18 per share from $29.4 million or $0.40 per share in the year-ago quarter.
Second quarter total revenues increased to $67.7 million from $60.7 million in the same quarter of last year. Four analysts had a consensus revenue estimate of $67.49 million for the second quarter.
For the second quarter of 2009, same-property net operating income declined 3.2% over a year ago, mainly due to lower occupancy and higher bad debt expense.
As of June 30, 2009, occupancy for the company's core portfolio was 90.7%, down 190 basis points on a same property basis as compared to June 30, 2008.
DIM Vastgoed's occupancy was 91.9%, down 320 basis points as compared to June 30, 2008.
Total costs and expenses for the second quarter increased to $43.6 million from $35.3 million in the prior year quarter.
During the quarter, Equity One completed a public offering and a concurrent private placement of common stock, raising net cash proceeds of $126.2 million which were primarily used to repay indebtedness.
Equity One also repurchased $12.9 million of its unsecured senior notes with varying maturities, generating a gain on the early extinguishment of debt of $3.5 million.
For the first half of 2009, Equity One reported FFO of $87.1 million or $1.07 per share, compared to $55.9 million or $0.76 per share in the previous year period.
Net income attributable to Equity One grew to $59.2 million or $0.72 per share from $50.3 million or $0.68 per share in the prior year period.
Total revenue for the year-to-date period increased to $136.9 million from $124.0 million in the year-ago period.
For 2009, Equity One continues to expect FFO of $1.55 to $1.63 per share, and net income of $0.92 to $0.98 per share. Street expects the company to report FFO of $1.58 per share for the year.
Among others in the industry, Kimco Realty Corp. (KIM) is slated to release second quarter financial results on July 30. Street expects the company to report $0.32 per share for the quarter on revenue of $189.26 million.
Regency Centers Corp. (REG) will report second quarter results on August 5. Analysts project earnings of $0.34 per share for the quarter on revenue of $109.13 million. The company has lowered its FFO outlook for the second quarter, and fiscal 2009.
Equity One closed Wednesday's regular trading session at $14.64, up 3 cents.
For comments and feedback: editorial@rttnews.com