| Glimcher Reports Third Quarter 2009 Results
-- Core mall store occupancy at September 30, 2009 of 92%, an improvement
of 160 bps from June 30, 2009
-- Company raised approximately $110 million in net proceeds from secondary
equity offering
-- Company has addressed all 2009 mortgage debt maturities
COLUMBUS, Ohio, Oct. 29 /PRNewswire-FirstCall/ -- Glimcher Realty Trust
(NYSE: GRT) today announced financial results for the third quarter ended
September 30, 2009. A description and reconciliation of non-GAAP financial
measures to GAAP financial measures is contained in a later section of this
press release. References to per share amounts are based on diluted common
shares.
Net loss to common shareholders during the third quarter of 2009 was
$2.4 million, or $0.06 per share, as compared to net loss of $3.4 million,
or $0.09 per share, in the third quarter of 2008. Funds From Operations
("FFO") during the third quarter of 2009 was $17.5 million compared to
$18.8 million in the third quarter of 2008. On a per share basis, FFO
during the third quarter of 2009 was $0.40 per share compared to $0.46 per
share for the third quarter of 2008.
"We are pleased with both the stability of our core mall portfolio and
the significant progress made during the third quarter to enhance our
liquidity and balance sheet position," stated Michael P. Glimcher, Chairman
of the Board and CEO. "In September, we successfully completed a secondary
equity offering raising approximately $110 million of net proceeds and have
now addressed all of our 2009 mortgage debt maturities," added Mr.
Glimcher.
Summary of Financial Results
(unaudited, dollars in thousands except per share amounts)
For Quarter Ended For Nine Months Ended
September 30, September 30,
-------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Revenues $74,568 $81,419 $228,539 $237,180
Net loss to common
shareholders $(2,435) $(3,444) $(7,318) $(2,391)
Loss per diluted
common share $(0.06) $(0.09) $(0.19) $(0.06)
FFO $17,462 $18,762 $54,322 $59,195
FFO per diluted
common share $0.40 $0.46 $1.29 $1.45
----- ----- ----- -----
Third Quarter Earnings Highlights
-- Total revenues were $74.6 million in the third quarter of 2009 compared
to total revenues of $81.4 million for the third quarter of 2008. The
$6.8 million decrease in total revenue was due to a $5.0 million
reduction in revenue from the sale of outparcels and a $1.8 million
reduction in base rents primarily resulting from tenant bankruptcies,
store closures and rent concessions made in the last twelve months.
-- Net loss to common shareholders for the third quarter of 2009 was $2.4
million compared to net loss of $3.4 million for the third quarter of
2008. The $1.0 million decrease in net loss was due to a $0.8 million
reduction in operating losses from properties held for sale and lower
interest costs.
-- Net operating income for comparable wholly-owned mall properties ("Core
Malls") decreased 4.2% in the third quarter of 2009 from the third
quarter of 2008. Core Malls exclude the Company's malls held in joint
ventures.
-- Store average rents for the Core Malls were $27.21 per square foot
("psf") at September 30, 2009, an increase from $27.13 psf at September
30, 2008. Re-leasing spreads for the leases signed during the third
quarter of 2009 were up 7% with base rents averaging $31.68 psf.
Re-leasing spreads represent the percentage change in base rent for
leases signed, both new leases and renewals, to the base rent for
comparative tenants for those leases where the space was occupied in the
previous twenty-four months.
-- Occupancy for stores in the Core Malls at September 30, 2009 was 91.9%
compared to 93.1% at September 30, 2008.
-- Average store sales in the Core Malls decreased 5.4% to $349 psf for the
twelve months ending September 30, 2009 compared to $369 psf for the
twelve months ending September 30, 2008, but increased sequentially
compared to the sales for the twelve months ending June 30, 2009 of $348
psf. Comparable mall store sales for the Company's Core Malls decreased
6.8% for the twelve months ending September 30, 2009 compared to the
same period in 2008. Average store sales represent retail sales for
mall stores of 10,000 square feet or less that reported sales in the
most recent twelve month period. Comparable sales compare only those
stores with sales in both respective twelve month periods ending
September 30, 2009 and September 30, 2008.
Update on liquidity and capital resources
-- Debt-to-total-market capitalization at September 30, 2009 (including the
Company's pro-rata share of joint venture debt) was 78.1% based on the
common share closing price of $3.67 as compared to 84.2% at December 31,
2008 based on the common share closing price of $2.81. Debt with fixed
rates represented approximately 83.9% of the Company's total outstanding
borrowings at September 30, 2009 as compared to 86.6% as of December 31,
2008. The Company's total consolidated debt decreased by $73.8 million
during the first nine months of 2009.
-- The Company issued 30,666,667 shares of common stock in September 2009,
raising net proceeds of approximately $110 million.
-- The Company conveyed its interest in Eastland Mall in Charlotte, North
Carolina to the lender during September 2009.
-- As of September 30, 2009, the Company is in compliance with the
financial covenants under its credit facility.
-- During the third quarter, the Company received non-binding commitments
from all of the participating banks eligible to provide a commitment to
extend the credit facility's maturity date through December 2011 and
modify its terms. As of September 30, 2009, one of the commitments has
expired and one additional bank, previously ineligible to provide a
commitment due to a default of its funding obligations, has cured its
default and is now eligible to provide a commitment, but has yet to do
so. The Company continues to work with all of the participating banks
in its credit facility for an extension and modification of the credit
facility and expects to execute the extension and modification late in
the fourth quarter of 2009.
-- The current maturity date of the Company's Credit Facility is December
of 2009 and the Credit Facility provides for a one year extension
option. On October 2, 2009, the Company notified the Credit Facility's
administrative agent of its intention to exercise the option to extend
the maturity date to December 2010, providing ample time to execute the
further extension and modification.
-- The Company continues its effort in the marketing of interests in three
of its properties with a goal of raising net proceeds of approximately
$50 million. Excess proceeds from the sale of all, or a portion of, the
Company's interests in these assets will be used to reduce the
outstanding borrowings on the credit facility in support of our efforts
to reduce the Company's leverage and enhance its liquidity. The three
properties are: Lloyd Center in Portland, Oregon; Polaris Towne Center
in Columbus, Ohio; and WestShore Plaza in Tampa, Florida.
2009 Outlook
The Company has revised guidance to reflect the additional shares
issued in connection with its recent secondary offering. The Company
estimates diluted net loss per share to be in the range of $(0.15) to
$(0.08) for the year ending December 31, 2009 and expects diluted FFO per
share to be in the range of $1.53 to $1.60 for the year ending December 31,
2009.
A reconciliation of the range of estimated diluted net loss per share
to FFO per share for 2009 follows:
Low End High End
------- --------
Estimated diluted net loss per share $(0.15) $(0.08)
Add: Real estate depreciation and amortization* 1.70 1.70
Less: Gain on sales of properties (0.02) (0.02)
------ ------
Estimated FFO per share $ 1.53 $1.60
====== ======
* wholly owned properties and pro rata share of joint ventures
For the fourth quarter of 2009, the Company estimates diluted net
income per share to be in the range of $0.01 to $0.08 and FFO per share to
be in the range of $0.28 to $0.35. A reconciliation of the range of
estimated diluted net income per share to estimated FFO per share for the
fourth quarter of 2009 follows:
Low End High End
------- --------
Estimated diluted net income per share $0.01 $0.08
Add: Real estate depreciation and amortization* 0.27 0.27
------ ------
Estimated FFO per share $ 0.28 $ 0.35
====== ======
* wholly owned properties and pro rata share of joint ventures
The Company's guidance assumes closing on the modification of its
credit facility late in the fourth quarter of 2009, but does not include
any impact from potential sales of interests in assets to a joint venture
or outright sales of assets.
Funds From Operations and Net Operating Income
This press release contains certain non-Generally Accepted Accounting
Principles (GAAP) financial measures and other terms. The Company's
definition and calculation of these non-GAAP financial measures and other
terms may differ from the definitions and methodologies used by other REITs
and, accordingly, may not be comparable. The non-GAAP financial measures
referred to above should not be considered as alternatives to net income or
other GAAP measures as indicators of the Company's performance.
Funds From Operations is used by industry analysts and investors as a
supplemental operating performance measure of an equity real estate
investment trust ("REIT"). The Company uses FFO in addition to net income
to report operating results. FFO is an industry standard for evaluating
operating performance defined as net income (computed in accordance with
GAAP) excluding gains or losses from sales of depreciable property, plus
real estate depreciation and amortization after adjustments for
unconsolidated partnerships and joint ventures. FFO does include impairment
losses for properties held for use and held for sale. Reconciliations of
non-GAAP financial measures to earnings used in this press release are
included in the above Outlook sections of the press release.
Net Operating Income (NOI) is used by industry analysts, investors and
Company management to measure operating performance of the Company's
properties. NOI represents total property revenues less property operating
and maintenance expenses. Accordingly, NOI excludes certain expenses
included in the determination of net income such as property management and
other indirect operating expenses, interest expense and depreciation and
amortization expense. These items are excluded from NOI in order to provide
results that are more closely related to a property's results of
operations. In addition the Company's computation of same mall NOI excludes
property bad debt expense, straight-line adjustments of minimum rents,
amortization of above-below market intangibles, termination income, and
income from outparcel sales. We also adjust for other miscellaneous items
in order to enhance the comparability of results from one period to
another. Certain items, such as interest expense, while included in FFO and
net income, do not affect the operating performance of a real estate asset
and are often incurred at the corporate level as opposed to the property
level. As a result, management uses only those income and expense items
that are incurred at the property level to evaluate a property's
performance. Real estate asset related depreciation and amortization is
excluded from NOI for the same reasons that it is excluded from FFO
pursuant to the National Association of Real Estate Investment Trust's
definition.
Third Quarter Conference Call
Glimcher's third quarter investor conference call is scheduled for 10
a.m. ET on Friday, October 30, 2009. Those wishing to join this call may do
so by calling (866) 783.2146, passcode 45198197. This call also will be
simulcast and available over the Internet via the web site http://www.glimcher.com
on October 30, 2009 and continue through November 13, 2009. Supplemental
information about the third quarter operating results is available on the
Company's website or at http://www.sec.gov or by calling (614) 887-5605.
About the Company
Glimcher Realty Trust, a real estate investment trust, is a recognized
leader in the ownership, management, acquisition and development of malls,
which includes enclosed regional malls and open-air lifestyle centers, as
well as community centers. At September 30, 2009, the Company's mall
portfolio, including assets held through the Company's strategic joint
ventures, consisted of 22 mall properties located in 13 states with gross
leasable area totaling approximately 19.1 million square feet. The
community center portfolio is comprised of four properties representing
approximately 800,000 square feet. Glimcher Realty Trust's common shares
are listed on the New York Stock Exchange under the symbol "GRT." Glimcher
Realty Trust's Series F and Series G preferred shares are listed on the New
York Stock Exchange under the symbols "GRT-F" and "GRT-G," respectively.
Glimcher Realty Trust is a component of both the Russell 2000(®) Index,
representing small cap stocks, and the Russell 3000(®) Index, representing
the broader market.
Forward Looking Statements
This news release contains certain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Such
statements are based on assumptions and expectations that may not be
realized and are inherently subject to risks and uncertainties, many of
which cannot be predicted with accuracy. Future events and actual results,
financial and otherwise, may differ from the results discussed in the
forward-looking statements. Risks and other factors that might cause
differences, some of which could be material, include, but are not limited
to, economic and market conditions, tenant bankruptcies, bankruptcies of JV
partners, rejection of leases by tenants in bankruptcy, financing and
development risks, construction and lease-up delays, cost overruns, the
level and volatility of interest rates, the rate of revenue increases
versus expense increases, the financial stability of tenants within the
retail industry, the failure of the Company to make additional investments
in regional mall properties and redevelopment of properties, the failure to
acquire properties as and when anticipated, the failure to fully recover
tenant obligations for CAM, taxes and other property expenses, the failure
of the Company to complete the amendment to its corporate credit facility,
failure to comply or remain in compliance with covenants in our debt
instruments, failure of the Company to qualify as real estate investment
trust, termination of existing JV arrangements, conflicts of interest with
our existing JV partners, the failure to sell mall and community centers
and the failure to sell such properties when anticipated, the failure to
achieve estimated sales prices and proceeds from the sale of malls,
increases in impairment charges, additional impairment charges, as well as
other risks listed from time to time in the Company's reports filed with
the Securities and Exchange Commission or otherwise publicly disseminated
by the Company.
Visit Glimcher at: http://www.glimcher.com
GLIMCHER REALTY TRUST
Operating Results
(in thousands, except per share amounts)
(unaudited)
Three Months ended
September 30,
------------------
Statement of Operations 2009 2008
----------------------- ---- ----
Total revenues $74,568 $81,419
Total expenses (51,846) (58,848)
------- -------
Operating income 22,722 22,571
Interest expense, net (19,874) (20,461)
Equity in loss of unconsolidated
real estate entities, net (759) (299)
---- ----
Income from continuing operations 2,089 1,811
Discontinued operations:
Loss on disposition of
property (288) -
Loss from operations (67) (895)
--- ----
Net income 1,734 916
Allocation to noncontrolling
interest 191 -
Less: Preferred stock dividends (4,360) (4,360)
------ ------
Net loss to common shareholders $(2,435) $(3,444)
======= =======
Reconciliation of Net
Loss to Common
--------------------- Per Diluted Per Diluted
Shareholders to Funds From Common Common
Operations Share Share
-------------------------- ------- ------
Net loss to common
shareholders $(2,435) $(3,444)
Allocation to
noncontrolling interest (191) -
---- -----
(2,626) $(0.06) (3,444) $(0.09)
Real estate depreciation
and amortization 18,515 0.42 20,677 0.51
Equity in loss of
unconsolidated real
estate entities, net 759 0.02 299 0.01
Pro-rata share of joint
venture funds from operations 526 0.01 1,230 0.03
Loss on disposition of property 288 0.01 - -
------- ----- ------- -----
Funds From Operations $17,462 $0.40 $18,762 $0.46
======= ===== ======= =====
Weighted average common
shares outstanding - basic 41,038 37,795
Weighted average common
shares outstanding -
diluted (1) 44,024 37,795
Earnings per Share
------------------
Net loss to common
shareholders before
discontinued operations per
common share $(0.05) $(0.07)
Discontinued operations per
common share $(0.01) $(0.02)
Loss per common share $(0.06) $(0.09)
Net loss to common
shareholders before
discontinued operations per
diluted common share $(0.05) $(0.07)
Discontinued operations per
diluted common share $(0.01) $(0.02)
Loss per diluted common share $(0.06) $(0.09)
Funds from operations per
diluted common share $0.40 $0.46
(1) FFO per share in 2009 and 2008 has been calculated using 44,053 and
40,783 common shares respectively, which includes common stock
equivalents.
GLIMCHER REALTY TRUST
Operating Results
(in thousands, except per share amounts)
(unaudited)
Nine Months ended September 30,
-------------------------------
Statement of Operations 2009 2008
----------------------- ---- ----
Total revenues (1) $228,539 $237,180
Total expenses (162,208) (164,521)
-------- --------
Operating income 66,331 72,659
Interest expense, net (58,059) (61,186)
Equity in loss of unconsolidated
real estate entities, net (1,842) (144)
------ ----
Income from continuing operations 6,430 11,329
Discontinued operations:
Impairment loss, net (183) -
(Loss) gain on disposition
of properties, net (288) 1,252
Loss from operations (778) (1,894)
---- ------
Net income 5,181 10,687
Allocation to noncontrolling
interest 579 -
Less: Preferred stock dividends (13,078) (13,078)
------- -------
Net loss to common shareholders $(7,318) $(2,391)
======= =======
Reconciliation of Net Loss to
Common Shareholders
----------------------------- Per Diluted Per Diluted
Common Common
to Funds From Operations Share Share
------------------------ -------- -------
Net loss to common shareholders $(7,318) $(2,391)
Allocation to noncontrolling
interest (579) -
---- -----
(7,897) $(0.19) (2,391) $(0.06)
Real estate depreciation
and amortization 59,301 1.41 59,129 1.45
Equity in loss of unconsolidated
real estate entities, net 1,842 0.04 144 0.00
Pro-rata share of joint venture
funds from operations 2,270 0.05 3,565 0.09
Gain on disposition of
properties, net (1,194) (0.02) (1,252) (0.03)
------ ----- ------ -----
Funds From Operations $54,322 $1.29 $59,195 $1.45
======= ===== ======= =====
Weighted average common shares
outstanding - basic 38,986 37,765
Weighted average common shares
outstanding - diluted (2) 41,972 37,765
Earnings per Share
------------------
Net loss to common
shareholders before
discontinued operations
per common share $(0.16) $(0.05)
Discontinued operations
per common share $(0.03) $(0.02)
Loss per common share $(0.19) $(0.06)
Net loss to common
shareholders before
discontinued operations per
diluted common share $(0.16) $(0.05)
Discontinued operations per
diluted common share $(0.03) $(0.02)
Loss per diluted common share $(0.19) $(0.06)
Funds from operations per
diluted common share $1.29 $1.45
(1) Includes a $1.482 million gain on sale of depreciable real estate for
the nine months ended September 30, 2009.
(2) FFO per share in 2009 and 2008 has been calculated using 41,989 and
40,757 common shares respectively, which includes common stock
equivalents.
GLIMCHER REALTY TRUST
Selected Balance Sheet Information
(in thousands, except percentages and base rents)
September 30, December 31,
2009 2008
---- ----
Investment in real estate, net $1,678,785 $1,761,033
Total assets $1,881,137 $1,876,313
Mortgage notes and other notes
payable $1,586,166 $1,659,953
Debt / Market capitalization 77.0% 83.6%
Debt / Market capitalization
including pro-rata share of
joint ventures 78.1% 84.2%
September 30, September 30,
2009 2008
---- ----
Occupancy:
------------
Core Malls (1):
---------------
Mall Anchors 93.1% 98.6%
Mall Stores 91.9% 93.1%
Total Consolidated Mall Portfolio 92.6% 96.6%
Malls including Joint Ventures (2):
-----------------------------------
Mall Anchors 93.7% 98.2%
Mall Stores 91.5% 92.6%
Total Mall Portfolio 92.9% 96.2%
Average Base Rents:
---------------------
Core Malls (1):
---------------
Mall Anchors $6.02 $6.05
Mall Stores $27.21 $27.13
Malls including Joint Ventures (2):
-----------------------------------
Mall Anchors $6.36 $6.38
Mall Stores $26.86 $26.85
(1) Excludes mall properties held for sale and the company's joint
venture malls.
(2) Excludes mall properties held for sale.
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