Equity One Reports 56% Rise in Q1 FFO

NORTH MIAMI BEACH, FL-Equity One Inc., a locally based shopping center REIT, experienced a 56% hike in funds from operations in the quarter ended March 31, compared with the same period last year.Funds from operations were $26.9 million this year and $17.2 million in the 2003 quarter. Funds from operations per diluted share rose 5.6% to 38 cents in the most recent quarter from 36 cents in last year’s quarter. First-quarter 2004 net income was up 64% to $20.2 million from $12.3 million in the 2003 first quarter. Net income per diluted share also rose to 29 cents in the first quarter, an 11.5% increase from 26 cents in the same period last year.Total rental revenue rose 47.1% to $55.3 million in the first quarter, compared with $37.6 million that quarter the year before. This year’s first quarter results include a $2-million gain on the sale of real estate, and the comparable 2003 quarter results include a $623,000 expense relating to debt extinguishment and a $503,000 gain on real estate sales. Last year’s quarter also includes former IRT Property Co. activity starting Feb. 12, 2003, when its merger with Equity One was completed.In other highlights that quarter, Equity One saw a 3.3% increase in same property net operating income and an overall 73.9% net operating income margin; acquired six properties totaling more than 831,000 sf of gross leasable area for a combined $107.8 million; completed 109 new leases totaling 538,262 sf at an average $9.87 per-sf rental rate; raised the rental rate on 82 lease renewals totaling 245,395 sf by 4.5% to $12.61 per sf; and finished and leased $28.2 million in development projects with an incremental yield of more than 10%.”The combination of robust leasing, targeted acquisitions, dispositions of non-core property, completed developments, effective property management and decisive capital markets activity has resulted in an excellent quarter and sets the stage for continued growth in 2004,” Chaim Katzman, chairman and CEO of Equity One, says in a statement.