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Urstadt Biddle Properties (UBA) came out with quarterly funds from operations (FFO) of $0.35 per share, missing the Zacks Consensus Estimate of $0.38 per share. This compares to FFO of $0.37 per share a year ago.
My grandmother often told me about her life as a child and the adversity that her parents faced growing up on a small family farm in rural South Carolina. My great grandparents witnessed the crippling of the banking system as panicky depositors withdrew cash, and of course, unemployment soared. I can only imagine what life would have been like during the Great Depression, a period in which real estate values were in a tailspin.
Regency Centers is a strong REIT which focuses on grocery-anchored properties. The company is doing just fine on an operational basis, and announced the purchase of Urstadt Biddle in a deal set to grow the portfolio by about 10%.
The merger looks good to me. REG is closer to fair value than the deeply discounted UBA which makes a stock for stock deal immediately accretive.
I cover some of the details of the stock-for-stock acquisition of Urstadt Biddle Properties by Regency Centers. The combined REIT will continue to be a blue-chip retail real estate operator with high-quality assets and a strong balance sheet.
Regency Centers Corp. REG, +3.09% said Thursday it has agreed to acquire Urstadt Biddle Properties Inc. UBA, +2.42% UBP, +2.25% in an all-stock deal valued at $1.4 billion. Under the terms of the deal, Regency, a REIT that develops shopping centers, will pay 0.347 of a newly issued share for each UBA or UBP share owned, equal to about $20.40 a share based on Regency's closing price on May 17.
Urstadt Biddle is often overlooked due to its small size and lack of communication. Its portfolio is well located in low-supply submarkets.
Urstadt Biddle (UBA) delivered FFO and revenue surprises of 16.67% and 3.79%, respectively, for the quarter ended January 2023. Do the numbers hold clues to what lies ahead for the stock?
UBA boasts a defensive, necessity-based shopping center portfolio in the affluent suburbs around New York City. The REIT has two common share classes.
Preferred stocks offer safer and higher dividend income. Today, quite a few of them are undervalued.