The company, which has spent the last few years building its portfolio largely through acquisition, has approximately $153 million in ground-up and redevelopment projects in the pipeline, and plans a consistent stream of new developments in coming years.
"This is where we see our growth in the coming years," said Chaim Katzman, chairman and CEO. "It's going to be a combination [of development and acquisition], but clearly we will see more development as a result of our quest to buy more land."
Equity One will close on at least two more land parcels in the next 90 days, and has added staff to focus on site selection and development.
"Our goal is to get to a steady state of delivering between $75 million and $100 million [in developments] a year," said Howard Sipzner, executive VP and CFO. "We won't get to that until 2008."The company also plans up to $100 million in acquisitions, bringing it to $240 million for the year.
For the second quarter, Equity One reported FFO of $30.8 million, down 5% from the same period in 2005. Net income totaled $111.3 million, up from $25.1 million last year.
During the quarter, the company sold 29 Texas centers to EQYInvest Texas LLC for $387.2 million. It will continue to manage the properties. The REIT also acquired three centers and a land parcel for $31 million. Its portfolio consists of 198 properties compassing 128 supermarket-anchored shopping centers, four drug store-anchored shopping centers, 46 centers anchored by other retailers, 13 development parcels and seven non-retail properties.
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