As I started looking at the fourth-quarter and full-year 2005 results from New Plan Excel Realty Trust
For the year, New Plan Excel turned in funds from operations (FFO) of $1.76 per share, which is a decline from last year's $2.04 performance. However, there are a number of moving parts in that calculation and the company has sold a number of properties and is reinvesting the proceeds. On an adjusted funds from operations (AFFO) basis, I estimate the company turned in $1.47 per diluted share, which more than covers the company's current dividend of $1.25. In looking at the dividend, it should be noted that the company cut its dividend from $0.4125 per share to $0.3125 per share, beginning with the third quarter of 2005.
Over the past few years, the company has entered into a number of joint ventures, including two with Income Investor selection JPMorgan Chase
The company's total debt-to-total market capitalization is a reasonable 37% and has been trending down from the 40% level it was at for most of last year. The company has 14% of its debt as variable, which is a bit higher than I like, but not unmanageable and its interest coverage is also healthy. Considering the overall diversity and stability of its larger tenants such as Kroger
As a small side note, there were a couple of items in the company's earnings release that I don't like to see. The first was the company highlighting that it beat First Call Consensus FFO estimates. While that's nice to know, I'm generally not a fan of companies that are so involved with the estimates game that they feel the need to shout about beating a quarterly estimate by a penny. The company deserves a little slack, because it's still smarting from the punishment its stock took when it cut its dividend last July to invest more heavily in joint ventures. But here's hoping for fewer pats on the back going forward.
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