Shopping center owner Equity One reports jump in 4th-qtr profit, issues 2010 profit guidance

Equity One reports jump in profit during 4Q

NORTH MIAMI BEACH, Fla. — Shopping center owner Equity One Inc. said Thursday it posted a 71 percent increase in fourth-quarter funds from operations, reporting higher revenue and an income tax benefit.

The company also released full-year results and provided guidance for the year.

Equity One reported funds from operations, or FFO, of $24.6 million, or 28 cents per share, compared with $14.4 million, or 19 cents per share, in the fourth quarter of 2008.

Total fourth-quarter revenue was $68.3 million, up 18 percent from $57.7 million

FFO, a widely used gauge of real estate operating performance, adds depreciation and amortization expenses, as well as other items, to net income.

Analysts polled by Thomson Reuters expected FFO of 26 cents per share.

FFO for the quarter includes a gain of $1.7 million on the sale of two outparcels and a $1.6 million income tax benefit.

Net income for the quarter was $9.3 million, or 10 cents per share, compared with $6.1 million, or 8 cents per share, in the year-ago period.

Shares rose 3 cents to $18.62.

For the full year, FFO was $143 million, or $1.71 per share, compared with $60.4 million, 81 cents per share, in 2008. Total revenue was $271.4 million.

Net income for the year was $83.8 million, or 99 cents per share, up from $35 million, or 47 per share, in 2008.

The company also provided guidance for the year. It expects FFO of $1.02 per share to $1.10 per share in 2010, while analysts predict FFO of $1.10 per share.

Equity One also announced a quarterly cash dividend of 22 cents per share, payable on March 31 to stockholders of record on March 15. The quarterly dividend represents an annual rate of 88 cents per share.