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NEW YORK CITY-Winn-Dixie leases, redevelopments and stock performance were key topics during locally based shopping center REIT New Plan Excel's fourth quarter and year-end results conference call. This call was the last one for president and COO Scott MacDonald, who is leaving in April to relocate to the West Coast with his family.
The company is making a few management changes due to MacDonald's impending departure. Starting March 1, Michael A. Carroll will be promoted to the role of to EVP, real estate operations where he will be responsible for all property operations and will serve as the primary liaison between the company's regional asset managers and its corporate office. Carroll, who joined the company in 1992, most recently held the position of SVP, director of redevelopment. Greg Levine is transitioning to the position of VP, director of redevelopment from his previous post of VP, leasing-northeast region and Dean R. Bernstein is being promoted to the position of EVP, acquisitions/dispositions from SVP, acquisitions.
The company's revenues are up. Total rental revenues for the fourth quarter of 2004 increased to $127.7 million from $117.9 million in the fourth quarter of 2003 and total rental revenues for the year ended December 31, 2004 were $495.5 million as compared with $470.7 million for previous year. During the call, officials said they were "disappointed in the company's stock performance" when compared to its peer groups. They cited it as being a problem in the perception of the company being considered a yield-oriented vs. growth-oriented stock.
Due to what company officials called "an unprecedented demand for retail properties," the company sold a number of non-core assets over the year. In total, the company generated approximately $62.2 million of proceeds through the culling of non-core and non-strategic properties, the disposition of certain properties held through joint ventures and the transfer of one property to a joint venture.
The Winn-Dixie chain's recent bankruptcy filing currently affects two leases with the company. The store locations represented by these two leases are not physically occupied and aggregate 91,162 s of gross leasable area and approximately $655,529 of annual base rent. According to Carroll, New Plan is already in active negotiations for replacement tenants at both locations. New Plan also has 20 Winn-Dixie Stores leases in its portfolio, including four leases at properties held in a joint venture. New Plan has not been informed of Winn-Dixie's plans for the other leases.
During the fourth quarter, the company completed the redevelopment of 12 shopping centers and added eight projects to its redevelopment pipeline, increasing to 38 redevelopment projects. The cost for all these projects is expected to be approximately $144.5 million. In 2004, the REIT completed 30 redevelopment projects at an aggregate cost of $87.4 million.
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