Equity One Reports Fourth Quarter and Year-End 2009 Operating Results.pdf

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diluted share Equity operator million income Net Fourth Quarter twelve months End
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diluted share Equity operator million income Net Fourth Quarter twelve months End
 
 
 
 
Equity One Reports Fourth Quarter and Year-
End 2009 Operating Results 
March 04, 2010 04:18 PM Eastern Time   
NORTH MIAMI BEACH, Fla.--(EON: Enhanced Online News)--Equity One, Inc. (NYSE:EQY), an owner, 
developer, and operator of shopping centers, announced today its financial results for the three and twelve months 
ended December 31, 2009.  
Quarterly Highlights 
l Fourth quarter FFO was $0.28 per diluted share compared to $0.19 per diluted share last year  
l Same property NOI decreased by 2.0%  
l Occupancy was 90.3%, unchanged from September 30, 2009 on a same-property basis  
l Closed on $250 million of five-year, 6.25% senior notes  
l Appointed as receiver of The Piers in New Port Richey, Florida  
l Executed a solar energy agreement at four shopping centers in the Northeast  
“Overall, we are pleased with our fourth quarter and full year performance during 2009 and believe our relative 
stability reflects our focus on operating fundamentals,” said Jeff Olson, Chief Executive Officer of Equity One. 
“During the year, we were able to take advantage of value enhancing transactions both in our investing activities and 
on the acquisition front. We were able to close strategically important acquisitions like Westbury Plaza and the 
adjacent land parcel at a time when many real estate companies were challenged by the economy.”  
Subsequent to December 31, 2009, the company:  
l Built an acquisition pipeline of approximately $68 million, including Copps Hill Plaza, a grocery-anchored 
shopping center in Ridgefield, Connecticut, and a Publix anchored shopping center in Broward County, 
Florida  
l Acquired 766,573 additional shares of DIM Vastgoed, N.V. (“DIM”)  
l Expanded the total commitments under Equity One’s existing line of credit by $45 million, increasing the line 
capacity to $272 million  
l Was appointed as receiver for The Shoppes at Lake Bryan in Hillsboro County, Florida  
Financial Highlights 
In the fourth quarter 2009, Equity One generated Funds From Operations (FFO) of $24.6 million, or $0.28 per 
diluted share, as compared to FFO for the same period in 2008 of $14.4 million, or $0.19 per diluted share. The 
fourth quarter 2009 FFO results include the following items:  
l $1.7 million, or $0.02 per diluted share, of gain on sale of two outparcels;  
l $1.6 million, or $0.02 per diluted share, of income tax benefit related to a non-cash valuation adjustment to a 
deferred tax asset; and  
l $0.8 million, or $0.01 per diluted share, from general and administrative expenses incurred by DIM related to 
its exploration of a rights offering  
For the twelve months ended December 31, 2009, Equity One reported FFO of $143.0 million, or $1.71 per 
diluted share, which includes one-time items of $0.33 per diluted share pertaining to the bargain purchase gain from 
our acquisition of a controlling stake of DIM in the first quarter and $0.08 of gains from our investment in equity 
securities recorded in the third quarter. FFO for the calendar year ended 2008 was $60.4 million, or $0.81 per 
diluted share, including $32.8 million, or $0.44 per diluted share, of non-cash impairment losses related to our 
investment in DIM and $4.3 million, or $0.06 per diluted share, in non-cash impairment losses primarily related to 
pre-development costs and goodwill impairment.  
Net income attributable to Equity One was $9.3 million and earnings per diluted share was $0.10 for the quarter 
ended December 31, 2009 as compared to net income of $6.1 million, or $0.08 per diluted share, for fourth quarter
2008. For the twelve months ended December 31, 2009, net income attributable to Equity One was $83.8 million, 
or $0.99 per diluted share. This compares to net income attributable to Equity One of $35.0 million, or $0.47 per 
diluted share, for the twelve months ended December 31, 2008. The 2008 results for the twelve months included 
$21.5 million of gains from the sale of nine properties to our joint venture with Global Retail Investors, LLC and the 
DIM non-cash impairment charge of $32.8 million. The full year 2009 results include $27.5 million of a bargain 
purchase gain related to our acquisition of a controlling stake in DIM.  
Operating Highlights 
As of December 31, 2009, occupancy for the company’s consolidated portfolio remained unchanged from 
September 30, 2009 at 90.3% and was down 180 basis points as compared to December 31, 2008.  
Same-property net operating income declined 2.0% for the fourth quarter of 2009 and 3.0% for the full year 
compared to the same periods in 2008. The declines were primarily due to lower occupancy, the impact of rent 
reductions granted to tenants and higher bad debt and tenant legal expenses.  
During the fourth quarter of 2009, the company executed 41 new leases in its core portfolio totaling 137,140 square 
feet at an average rental rate of $13.76 per square foot, representing a 7.9% decrease from prior rents on a same-
space cash basis. Also during the fourth quarter, the company renewed 92 leases in its core portfolio for 288,317 
square feet for an average rental rate decline of 5.4% to $12.12 per square foot on a cash basis. In addition, the 
company renewed five leases in its core portfolio for 70,021 square feet subject to tenant renewal options for an 
average rental rate increase of 7.8% to $6.38 per square foot on a cash basis.  
Acquisition Activity 
During the fourth quarter, the company acquired Westbury Plaza, a 398,602 square foot shopping center located in 
Westbury, New York, anchored by Costco, Wal-Mart and Sports Authority for approximately $103.7 million. In 
addition, the company acquired a 22 acre land parcel for $24.5 million adjacent to Westbury Plaza for the 
development of a proposed shopping center.  
Development and Redevelopment Activities 
At December 31, 2009, Equity One had approximately $43.9 million of active development projects and 
approximately $7 million of redevelopment projects underway. The estimated remaining cost to complete these 
projects is approximately $17.2 million. Costs to develop the Westbury site are not included in these amounts as 
such costs have not yet been determined given the preliminary stages of the design plan.  
Balance Sheet Highlights 
At December 31, 2009, Equity One’s total market capitalization (including debt and equity) equaled $2.6 billion, 
comprising 86.9 million shares of common stock outstanding (on a fully diluted basis) valued at $1.4 billion and $1.2 
billion of net debt (excluding any debt premium/discount and net of cash). The company’s ratio of net debt to total 
market capitalization was 46.0%. In addition, the company had approximately $48.0 million of cash on hand at 
December 31, 2009 with no amounts drawn on any of its revolving credit facilities.  
FFO and Earnings Guidance 
During 2010, the company will continue to focus on managing the quality of its balance sheet while seeking 
acquisition opportunities in selected markets. Equity One is providing 2010 FFO initial guidance of $1.02 to $1.10 
per diluted share. The following key assumptions and expectations are included as part of this FFO guidance:  
l Same property NOI of 0 to -3% for the year;  
l Occupancy will be flat to down 100 basis points;  
l Core acquisitions of $150 to $200 million financed by a combination of debt and equity;  
l Gains on the sales of outparcels of approximately $3.0 million  
The following table provides the reconciliation of the range of estimated net income per diluted share to estimated 
FFO per diluted share for the full year 2010:  
First Quarter 2010 Dividend Declared 
On March 2, 2010, the Company’s Board of Directors declared a cash dividend of $0.22 per share of its common 
stock for the quarter ending March 31, 2010, payable on March 31, 2010 to stockholders of record on March 15, 
2010. The $0.22 per share dividend represents an annualized rate of $0.88 per share.  
ACCOUNTING AND OTHER DISCLOSURES 
We believe FFO (combined with the primary GAAP presentations) is a useful, supplemental measure of our 
operating performance that is a recognized metric used extensively by the real estate industry, particularly REITs. 
The National Association of Real Estate Investment Trusts (“NAREIT”) stated in its April 2002 White Paper on 
Funds from Operations, “Historical cost accounting for real estate assets implicitly assumes that the value of real 
estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with 
market conditions, many industry investors have considered presentations of operating results for real estate 
companies that use historical cost accounting to be insufficient by themselves.”  
FFO, as defined by NAREIT, is “net income (computed in accordance with GAAP), excluding gains (or losses) 
from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated 
partnerships and joint ventures.” NAREIT states further that “adjustments for unconsolidated partnerships and joint 
ventures will be calculated to reflect funds from operations on the same basis.” We believe that financial analysts, 
investors and stockholders are better served by the presentation of comparable period operating results generated 
from our FFO measure. Our method of calculating FFO may be different from methods used by other REITs and, 
accordingly, may not be comparable to such other REITs.  
FFO is presented to assist investors in analyzing our operating performance. FFO (i) does not represent cash flow 
from operations as defined by GAAP, (ii) is not indicative of cash available to fund all cash flow needs, including the 
ability to make distributions, (iii) is not an alternative to cash flow as a measure of liquidity, and (iv) should not be 
considered as an alternative to net income (which is determined in accordance with GAAP) for purposes of 
evaluating our operating performance. We believe net income is the most directly comparable GAAP measure to 
FFO.  
CONFERENCE CALL/WEB CAST INFORMATION 
We will host a conference call on Friday, March 5, 2010 at 9:00 a.m. EDT to review the 2009 fourth quarter and 
full year earnings and operating results. Stockholders, analysts and other interested parties can access the earnings 
call by dialing (800) 510-9661 (U.S./Canada) or (617) 614-3452 (international) using pass code 47507225. The 
call will also be web cast and can be accessed in a listen-only mode on Equity One’s web site at 
www.equityone.net.  
If you are unable to participate during the call, a replay will be available on Equity One’s web site for future review. 
You may also access the telephone replay by dialing (888) 286-8010 (U.S./Canada) or (617) 801-6888 
(international) using pass code 67593455 through March 12, 2010.  
FOR ADDITIONAL INFORMATION 
Low High 
Estimated net income attributable to Equity One 
$0.33 $ 0.41
Adjustments: 
Rental property depreciation and amortization including pro rata share of joint ventures and DIM 0.69 0.69
Estimated FFO attributable to Equity One 
$1.02 $ 1.10
For a copy of our fourth quarter supplemental information package, please access the “Investors” section of our web
site at www.equityone.net. To be included in our e-mail distributions for press releases and other company notices, 
please send your e-mail address to Michele Villano at mvillano@equityone.net.  
ABOUT EQUITY ONE, INC. 
As of December 31, 2009, Equity One owned or had interests in 182 properties, consisting of 168 shopping centers
comprising approximately 19.0 million square feet, three projects in development/redevelopment, six non-retail 
properties, and five parcels of land. Additionally, Equity One had joint venture interests in twelve shopping centers 
and one office building totaling approximately 1.9 million square feet.  
FORWARD LOOKING STATEMENTS 
Certain matters discussed by Equity One in this press release constitute forward-looking statements within 
the meaning of the federal securities laws.Although Equity One believes that the expectations reflected in 
such forward-looking statements is based upon reasonable assumptions, it can give no assurance that these 
expectations will be achieved. Factors that could cause actual results to differ materially from current 
expectations include changes in macro-economic conditions and the demand for retail space in the states in 
which Equity One owns properties; the continuing financial success of Equity One’s current and prospective 
tenants; continuing supply constraints in its geographic markets; the availability of properties for 
acquisition; the success of its efforts to lease up vacant space; the effects of natural and other disasters; the 
ability of Equity One successfully to integrate the operations and systems of acquired companies and 
properties; and other risks, which are described in Equity One’s filings with the Securities and Exchange 
Commission. 
EQUITY ONE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets 
December 31, 2009 and 2008 
(In thousands, except per share amounts) 
December 
31,
December 
31,
2009
2008
ASSETS
Properties: 
Income producing 
$ 2,433,431 $ 1,900,513 
Less: accumulated depreciation 
(240,172 )
(196,151 )
Income producing property, net 
2,193,259 
1,704,362 
Construction in progress and land held for development 
68,866 
74,371 
Properties, net 
2,262,125 
1,778,733 
Cash and cash equivalents 
47,970 
5,355 
Accounts and other receivables, net 
9,806 
12,209 
Investments in and advances to unconsolidated joint ventures 
11,524 
11,745 
Securities 
820 
160,585 
Goodwill 
11,477 
11,845 
Other assets 
108,598 
55,791 
TOTAL ASSETS
$ 2,452,320 $ 2,036,263 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities: 
Notes Payable 
Mortgage notes payable 
$ 551,647 
$ 371,077 
Unsecured revolving credit facilities 
- 
35,500 
Unsecured senior notes payable 
691,136 
657,913 
1,242,783 
1,064,490 
Unamortized/unaccreted (discount) premium on notes payable 
(25,892 
)
5,225 
Total notes payable 
1,216,891 
1,069,715 
Other liabilities 
Accounts payable and accrued expenses 
33,251 
27,778 
Tenant security deposits 
9,180 
8,908 
Deferred tax liabilities, net 
50,059 
1,409 
Other liabilities 
54,237 
17,966 
Total liabilities 
1,363,618 
1,125,776 
Redeemable noncontrolling interest 
989 
989 
Commitments and contingencies 
- 
- 
Stockholders’ equity: 
Preferred stock, $0.01 par value – 10,000 shares authorized but unissued 
- 
- 
Common stock, $0.01 par value – 100,000 shares authorized 86,131 and 76,198 
shares issued and outstanding for 2009 and 2008, respectively  
861 
762 
Additional paid-in capital 
1,110,427 
967,514 
Distributions in excess of earnings 
(46,810 
)
(36,617 
)
Contingent consideration 
323 
- 
Accumulated other comprehensive loss 
(266 
)
(22,161 
)
Total stockholders’ equity of Equity One, Inc. 
1,064,535 
909,498 
Noncontrolling interest 
23,178 
- 
Total stockholders equity 
1,087,713 
909,498 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$ 2,452,320 $ 2,036,263 
EQUITY ONE, INC. AND SUBSIDIARIES 
Consolidated Statements of Operations 
For the three and twelve months ended December 31, 2009 and 2008 
(In thousands, except per share data) 
Three months ended
Twelve months 
ended
December 31
December 31,
2009
2008
2009
2008
REVENUE: 
Minimum rent 
$ 53,120 $ 43,898 $ 210,068 $181,998
Expense recoveries 
14,617 
13,252 
57,968 
51,761 
Percentage rent 
163 
98 
1,679 
1,901 
Management and leasing services 
359 
467 
1,675 
1,789 
Total revenue 
68,259 
57,715 
271,390
237,449
COSTS AND EXPENSES: 
Property operating 
19,969 
17,353 
78,078 
64,198 
Rental property depreciation and amortization 
16,549 
10,802 
62,131 
45,438 
General and administrative 
9,815 
9,614 
38,835 
31,957 
Total costs and expenses 
46,333 
37,769 
179,044
141,593
INCOME BEFORE OTHER INCOME AND EXPENSE, TAX 
AND DISCONTINUED OPERATIONS  
21,926 
19,946 
92,346 
95,856 
OTHER INCOME AND EXPENSE: 
Investment income 
120 
2,169 
10,155 
10,220 
Equity in (loss) income in unconsolidated joint ventures 
(51 
)
(137 
)
(88 
) 108 
Other income 
93 
251 
1,503 
967 
Interest expense 
(18,026)
(14,273)
(73,450 )
(60,851 )
Amortization of deferred financing fees 
(385 
)
(361 
)
(1,520 )
(1,629 )
Gain on acquisition of controlling interest in subsidiary 
635 
- 
27,501 
- 
EQUITY ONE, INC. AND SUBSIDIARIES 
Reconciliation of Net Income Attributable to Equity One to Funds from Operations 
The following table reflects the reconciliation of FFO to net income attributable to Equity One, the most directly 
comparable GAAP measure, for the periods presented:  
Funds from Operations is a non-GAAP financial measure. We believe that FFO, as defined by NAREIT, is a widely
used and appropriate supplemental measure of operating performance for REITs, and that it provides a relevant 
basis for comparison among REITs.  
Reconciliation of Earnings per Diluted Share to Funds from Operations per Diluted Share 
The following table reflects the reconciliation of FFO per diluted share, to earnings per diluted share, the most 
Gain on sale of real estate 
- 
3,030 
- 
21,542 
(Loss) Gain on extinguishment of debt 
(50 
) 1,145 
12,345 
6,473 
Impairment loss 
(369 
)
(4,855 )
(369 
)
(37,497 )
INCOME FROM CONTINUING OPERATIONS BEFORE 
TAX AND DISCONTINUED OPERATIONS: 
3,893 
6,915 
68,423 
35,189 
Income tax benefit (provision) of taxable REIT subsidiaries 
2,755 
(1,088 ) 5,017 
(1,015 )
INCOME FROM CONTINUING OPERATIONS 
$ 6,648 
$ 5,827 
$ 73,440 $34,174 
DISCONTINUED OPERATIONS: 
Operations of income producing properties sold or held for sale 
15 
310 
808 
1,391 
Gain (loss) on disposal of income producing properties 
1,754 
(6 
) 7,127 
(557 
)
INCOME FROM DISCONTINUED OPERATIONS 
1,769 
304 
7,935 
834 
NET INCOME 
$ 8,417 
$ 6,131 
$ 81,375 $35,008 
Net loss attributable to non controlling interest 
889 
- 
2,442 
- 
NET INCOME ATTRIBUTABLE TO EQUITY ONE 
$ 9,306 
$ 6,131 
$ 83,817 $35,008 
EARNINGS PER COMMON SHARE - BASIC: 
Continuing operations 
$ 0.09 
$ 0.08 
$ 0.91 
$0.46 
Discontinued operations 
0.02 
0.00 
0.09 
0.01 
$ 0.11 
$ 0.08 
$ 1.00 
$0.47 
Number of Shares Used in Computing Basic Earnings per Share 
86,006 
76,070 
83,290 
74,075 
EARNINGS PER COMMON SHARE – DILUTED: 
Continuing operations 
$ 0.08 
$ 0.08 
$ 0.89 
$0.46 
Discontinued operations 
0.02 
0.00 
0.09 
0.01 
$ 0.10 
$ 0.08 
$ 0.99 
$0.47 
Number of Shares Used in Computing Diluted Earnings per Share 
86,616 
76,074 
83,857 
74,098 
Note: Diluted EPS for the year ended December 31, 2009 does not foot due to the mathematical rounding of the 
individual calculations. 
Three Months 
Ended
Twelve Months 
Ended
December 31,
December 31,
2009
2008
2009
2008
(In thousands) 
(In thousands) 
Net income attributable to Equity One 
$ 9,306 
$ 6,131 
$ 83,817 $ 35,008 
Adjustments: 
Rental property depreciation and amortization, including 
discontinued operations, net of non controlling interest  
14,975
10,825 
56,057 
45,586 
(Gain) loss on disposal of depreciable real estate 
(85 
)
(3,024 )
1,673 
(21,027 )
Pro rata share of real estate depreciation from unconsolidated joint 
ventures  
377 
419 
1,436 
810 
Funds from operations
$ 24,573 $ 14,351 $ 142,983 $ 60,377
directly comparable GAAP measure, for the periods presented:  
Contacts  
Equity One, Inc. 
Mark Langer, EVP and Chief Financial Officer, 305-947-1664  
Permalink: http://eon.businesswire.com/news/eon/20100304006582/en 
Three Months 
Ended
Twelve Months 
Ended
December 31,
December 31,
2009
2008
2009
2008
Earnings per diluted share attributable to Equity One 
$ 0.10 $ 0.08 
$ 0.99 $ 0.47 
Adjustments: 
Rental property depreciation and amortization, including discontinued 
operations, net of non controlling interest  
0.17 
0.14 
0.67 
0.62 
(Gain) loss on disposal of depreciable real estate 
- 
(0.04 )
0.02 
(0.28 )
Pro rata share of real estate depreciation from unconsolidated joint 
ventures  
- 
- 
0.02 
0.01 
Net adjustment for unvested shares and non controlling interest (1)
0.01 
0.01 
0.01 
(0.01 )
Funds from operations per diluted share
$ 0.28 $ 0.19
$ 1.71 $ 0.81
(1)
Includes net effect of (a) an adjustment for unvested awards of share-based payments with rights to receive 
dividends or dividend equivalents and (b) an adjustment related to the possible share issuance in the fourth 
quarter of 2010 pursuant to the DIM stock exchange agreement.