Equity One Inc. (EQY, Financial) filed Quarterly Report for the period ended 2009-03-31.
Equity One Inc. is a self-administered self-managed real estate investment trust that principally acquires renovates develops and manages community and neighborhood shopping centers anchored by national and regional supermarket chains. Equity One Inc. has a market cap of $1.11 billion; its shares were traded at around $14.27 with a P/E ratio of 11.8 and P/S ratio of 4.6. The dividend yield of Equity One Inc. stocks is 8.4%.
General and administrative expenses increased by $5.4 million, or 78%, to $12.3 million in 2009 compared to $6.9 million in 2008. The increase is attributable to $3.3 million associated with severance and severance related costs related to the termination of employment of two senior executives initiated as part of our management streamlining and cost management program. We also incurred an increase in leasing personnel cost and higher audit fee expense associated with finalizing the 2008 audit which were not present in the same 2008 three month period. In addition, we had the following direct and indirect costs associated with DIM; approximately $450,000 in administrative costs associated with DIM s ongoing operations, which comprises legal, accounting services and other costs, and approximately $800,000 in transaction costs, such as legal accounting and other professional services associated with our acquisition of the controlling interest in DIM.
Investment income decreased by $4.1 million, or 67%, to $2.1 million in 2009 compared to $6.2 million 2008. The decrease is primarily attributable to a $5.4 million reduction in dividend income due to the absence of $5.9 million in DIM dividends in the current period, partially offset by $500,000 of dividend income recognized on our current equity investments. We also recognized in the 2009 period $1.3 million of interest income from our investment in debt securities that were not present in the comparable 2008 period.
Interest expense increased by $3.6 million, or 22.4%, to $19.6 million in the 2009 period as compared to $16.0 million in the 2008 period. The increase is primarily attributable to the following:
In the first quarter of 2009, we repurchased and canceled approximately $30.5 million principal amount of our senior notes and recognized a net gain on early extinguishment of debt of approximately $8.7 million. In the 2008 period, we repurchased and canceled approximately $27.9 million of our senior debt and recognized a net gain on early extinguishment of debt of approximately $2.4 million.
In the first quarter of 2009, we recognized $639,000 in net tax benefits mainly attributable to the consolidation of DIM , which accounts for $750,000 in tax benefits in the current period, net of $110,000 in tax provisions from our core portfolio. In the same 2008 three month period, we recognized a tax provision of $83,000.
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Equity One Inc. is a self-administered self-managed real estate investment trust that principally acquires renovates develops and manages community and neighborhood shopping centers anchored by national and regional supermarket chains. Equity One Inc. has a market cap of $1.11 billion; its shares were traded at around $14.27 with a P/E ratio of 11.8 and P/S ratio of 4.6. The dividend yield of Equity One Inc. stocks is 8.4%.
Highlight of Business Operations:
On January 1, 2009, the Company adopted the provisions of FAS 160. The provisions of FAS 160 establish accounting and reporting standards for the noncontrolling interest in a consolidated subsidiary. FAS 160 is being applied prospectively, except for the provisions related to the presentation of noncontrolling interests in the statement of shareholders equity. As of March 31, 2009 and December 31, 2008, noncontrolling interests of $989,000 and $989,000, respectively, have been classified as a component of equity in the consolidated balance sheet. For the three months ended March 31, 2009 and 2008, net loss attributable to noncontrolling interests of $476,000 and $0, respectively, is included in net income. Earnings per share has not been affected as a result of the adoption of the provisions of FAS 160.General and administrative expenses increased by $5.4 million, or 78%, to $12.3 million in 2009 compared to $6.9 million in 2008. The increase is attributable to $3.3 million associated with severance and severance related costs related to the termination of employment of two senior executives initiated as part of our management streamlining and cost management program. We also incurred an increase in leasing personnel cost and higher audit fee expense associated with finalizing the 2008 audit which were not present in the same 2008 three month period. In addition, we had the following direct and indirect costs associated with DIM; approximately $450,000 in administrative costs associated with DIM s ongoing operations, which comprises legal, accounting services and other costs, and approximately $800,000 in transaction costs, such as legal accounting and other professional services associated with our acquisition of the controlling interest in DIM.
Investment income decreased by $4.1 million, or 67%, to $2.1 million in 2009 compared to $6.2 million 2008. The decrease is primarily attributable to a $5.4 million reduction in dividend income due to the absence of $5.9 million in DIM dividends in the current period, partially offset by $500,000 of dividend income recognized on our current equity investments. We also recognized in the 2009 period $1.3 million of interest income from our investment in debt securities that were not present in the comparable 2008 period.
Interest expense increased by $3.6 million, or 22.4%, to $19.6 million in the 2009 period as compared to $16.0 million in the 2008 period. The increase is primarily attributable to the following:
In the first quarter of 2009, we repurchased and canceled approximately $30.5 million principal amount of our senior notes and recognized a net gain on early extinguishment of debt of approximately $8.7 million. In the 2008 period, we repurchased and canceled approximately $27.9 million of our senior debt and recognized a net gain on early extinguishment of debt of approximately $2.4 million.
In the first quarter of 2009, we recognized $639,000 in net tax benefits mainly attributable to the consolidation of DIM , which accounts for $750,000 in tax benefits in the current period, net of $110,000 in tax provisions from our core portfolio. In the same 2008 three month period, we recognized a tax provision of $83,000.
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