Analyst Summary:
Urstadt Biddle Properties, a real estate investment trust, reported its Q1 FY2023 operating results, indicating growth in leased space and increased rental rates driven by higher demand for vacant space at their properties. The company renewed leases for 84,400 square feet and signed new leases for 73,800 square feet, with leased rates rising to 94%. The CEO, Willing L. Biddle, indicated that there is still room for income growth in their existing portfolio as vacancies are filled with new tenants. They reported a collection rate on rents billed that has returned to pre-pandemic levels while most tenants can pay rent without assistance. The portfolio includes grocery-anchored community and neighborhood shopping centers that have proven to be solid investments. Urstadt Biddle Properties paid 212 consecutive quarters of uninterrupted dividends to shareholders since inception. The company is negotiating a lease with a national retailer for a portion of the Bed Bath and Beyond space at their Ridgeway Shopping Center. The earnings and FFO have returned to pre-pandemic levels with a strong pipeline of new leases.
Forward-looking statements indicate that the increasing demand for space and decreasing supply will have a positive effect on the occupancy and rents in the future, and the company has a strong leasing and management team to deliver space for new tenants. However, competitive factors and rising interest rates may affect their financial results.