Exhibit 99.1
 
Equity One, Inc.
1600 NE Miami Gardens Drive
North Miami Beach, FL 33179
305-947-1664
For additional information:
Mark Langer, EVP and
Chief Financial Officer
FOR IMMEDIATE RELEASE:

Equity One Reports Second Quarter 2014 Operating Results

North Miami Beach, FL, July 30, 2014 - Equity One, Inc. (NYSE:EQY), an owner, developer, and operator of shopping centers, announced today its financial results for the three and six months ended June 30, 2014.

Highlights of the quarter and recent activity include:

Generated Recurring Funds From Operations of $0.32 per diluted share for the quarter, a 3% increase as compared to the second quarter of 2013, and $0.67 per diluted share for the six months ended June 30, 2014, a 6% increase as compared to the same period of 2013
Generated Funds From Operations of $0.32 per diluted share for the quarter, a 14% increase as compared to the second quarter of 2013, and $0.67 per diluted share for the six months ended June 30, 2014, a 12% increase as compared to the same period of 2013
Increased same property net operating income (NOI) by 2.6% as compared to the second quarter of 2013, and by 2.5% as compared to the six months ended June 30, 2013
Consolidated shopping center occupancy increased to 94.2%, up 30 basis points as compared to March 31, 2014, and up 270 basis points as compared to June 30, 2013
Same property occupancy increased 10 basis points to 94.2% as compared to March 31, 2014, and increased 40 basis points to 94.1% as compared to June 30, 2013
Executed 125 new leases, renewals, and options during the quarter totaling 610,770 square feet at an average rent spread of 5.0% on a same space basis
Increased average base rents to $16.68 per square foot at June 30, 2014, up 1.9% as compared to March 31, 2014, and up 8.7% as compared to June 30, 2013
Year-to-date through this release, sold thirteen non-core assets for $106.9 million, including four assets for $32.3 million during the second quarter and five assets for $48.3 million subsequent to June 30, 2014, and have eight additional non-core assets under contract for $35.3 million
Updated 2014 Recurring FFO guidance to a new range of $1.25 to $1.28 per diluted share, which compares to previous guidance of $1.23 to $1.28 per diluted share

“I am pleased we were able to deliver solid results during my first quarter as chief executive officer, including stronger than expected FFO growth, improved operating fundamentals, an accelerated pace of non-core dispositions and an increase in earnings guidance,” said David Lukes, CEO. “I am truly excited about our leadership team, the quality and redevelopment potential of our properties and our strategy for long term growth.”

Financial Highlights

Recurring FFO was $41.4 million, or $0.32 per diluted share, for the second quarter of 2014, as compared to $39.7 million, or $0.31 per diluted share, for the second quarter of 2013, representing a 3% increase on a per share basis. Recurring FFO was $86.8 million, or $0.67 per diluted share for the six months ended June 30, 2014, as compared to $80.6 million, or $0.63 per diluted share for the same period of 2013, representing a 6% increase on a per share basis. Recurring FFO for the six months ended June 30, 2014 included a $4.2 million net termination benefit related to the Loehmann’s lease at 101 7th Avenue and a $1.1 million reversal of bad debt expense associated with the settlement of historical real estate taxes with two tenants. In the second quarter of 2014, the company generated FFO of $41.4 million, or $0.32 per diluted share, as compared to $36.8 million, or $0.28 per diluted share for the second quarter of 2013, representing a 14% increase on a per share basis. FFO was $86.2 million, or $0.67 per diluted share for the six months ended June 30, 2014, as compared to $76.7 million, or $0.60 per diluted share for the same period of 2013, representing a 12% increase on a per share basis.






Net loss attributable to Equity One was $2.4 million, or $0.02 per diluted share, for the quarter ended June 30, 2014, as compared to net income attributable to Equity One of $33.6 million, or $0.28 per diluted share, for the second quarter of 2013. Net income attributable to Equity One was $23.9 million, or $0.20 per diluted share, for the six months ended June 30, 2014, as compared to $58.2 million, or $0.49 per diluted share, for the same period of 2013. The results for the three and six months ended June 30, 2014 included $13.9 million of impairment losses, net of tax, as compared to $2.7 million of impairment losses, net of tax, for the three and six months ended June 30, 2013. Net income attributable to Equity One for the six months ended June 30, 2014 included $5.8 million related to the company’s pro rata share of the gain on the sale of a joint venture property and the recognition of a $2.2 million gain due to the remeasurement of its existing equity investment in Talega Village Center upon the purchase of its joint venture partners’ interests. The results for the three and six months ended June 30, 2013 included $24.9 million and $36.1 million, respectively, of gains on the sale of income producing non-core properties and land, net of tax. A reconciliation of net (loss) income attributable to Equity One to FFO and the reconciling components of FFO to Recurring FFO are provided in the tables accompanying this press release.

Operating Highlights

Same property NOI increased 2.6% for the second quarter of 2014 as compared to the second quarter of 2013. Same property NOI increased 2.5% for the six months ended June 30, 2014, as compared to the same period of 2013. A reconciliation of same property NOI to (loss) income from continuing operations before tax and discontinued operations is provided in the tables accompanying this press release. As of June 30, 2014, occupancy for the company’s consolidated shopping center portfolio was 94.2%, up 30 basis points as compared to March 31, 2014, and up 270 basis points as compared to June 30, 2013. On a same property basis, occupancy increased 10 basis points to 94.2% as compared to March 31, 2014, and increased 40 basis points to 94.1% as compared to June 30, 2013. Same- property occupancy for shop space increased 80 basis points to 84.8% as compared to March 31, 2014, and increased 180 basis points to 84.5% as compared to June 30, 2013.

During the second quarter of 2014, the company executed 125 new leases, renewals, and options totaling 610,770 square feet, including 108 same space leases totaling 488,682 square feet. On a same space cash basis, average rents for these leases increased by 5.0%. On a same space basis, 23 new leases were executed in the second quarter of 2014 comprising 53,142 square feet at an average rental rate of $20.09 per square foot, representing a 10.8% increase from prior cash rents. Additionally, the company renewed 85 leases on a same space basis, totaling 435,540 square feet at an average rental rate of $14.22 per square foot, representing a 4.1% increase from prior cash rents. For the six months ended June 30, 2014, the company executed 248 new leases, renewals, and options totaling 1.3 million square feet, including 213 same space leases totaling 1.1 million square feet at an average rental rate of $16.44 per square foot, representing a 2.7% increase from prior cash rents. Excluding the new anchor lease executed during the first quarter of 2014 at Park Promenade, same space cash leasing spreads for the six months ended June 30, 2014 averaged 5.3% for all new leases, renewals and options, and 9.9% for new leases.
Development and Redevelopment Activities

As of June 30, 2014, the company had approximately $139.4 million of active development and redevelopment projects underway of which $69.4 million remained to be funded.

At Serramonte, the new 83,000 square foot Dick’s Sporting Goods store had a successful grand opening in April 2014 becoming the mall’s fourth anchor. At 101 7th Avenue, the former Loehmann’s space is being prepared for a new Barneys flagship store at an expected cost of $12.5 million. The company expects to deliver the space to Barneys by the first quarter of 2015 so that Barneys may commence its build-out. The company commenced demolition work at Alafaya Commons in Orlando, Florida, where the former grocery space is being redeveloped to accommodate a 63,000 square foot Academy Sports store at an estimated cost of $7.5 million.  Academy Sports is expected to open for business in the first quarter of 2015.

Construction activity at Broadway Plaza, a development site in the Bronx, New York, is progressing as planned. The initial phase of the project, consisting of 115,000 square feet, is expected to open during the fourth quarter of 2014, and the second phase of the project, consisting of an additional 33,000 square feet, is expected to open in the second quarter of 2015. The four anchors for the initial phase of the project have all signed leases, including The Sports Authority, TJ Maxx, Aldi’s, and Party City, representing 72% of the space in the initial phase, including the entire second retail level. The total budgeted cost of the entire project is approximately $66.5 million of which $22.6 million remained to be funded as of June 30, 2014, $12.3 million of which related to the 115,000 square foot initial phase, and $10.3 million of which related to the 33,000 square foot second phase.






The company has six additional properties under active redevelopment at an expected cost of $52.9 million, of which $28.6 million remained to be funded as of June 30, 2014. These projects include design improvements, expansions and new anchor re-tenanting with retailers such as L.A. Fitness, Walgreens, Ulta Beauty, UFC Gym, Publix, CVS Pharmacy, The Fresh Market, and Ross. The company is actively working on future redevelopment opportunities that include projects to consolidate shop space, to upgrade the tenant mix of certain centers by replacing underperforming anchor tenants and to expand certain centers by adding new outparcels.

Disposition Activity

During the second quarter of 2014, the company closed on the sale of four non-core assets totaling approximately 337,000 square feet of gross leasable area (GLA) for $32.3 million. Since June 30, 2014 and through the date of this release, the company has closed on the sale of five additional non-core assets totaling approximately 494,000 square feet of GLA for $48.3 million, and has contracts to sell eight additional non-core assets totaling approximately 559,000 square feet of GLA for $35.3 million.

Year-to-date through this release, the total value of non-core assets sold and under contract is $142.3 million, representing a weighted average capitalization rate (excluding a property sold via short-sale for $5.4 million) of approximately 7.7%. The company continues to explore opportunities to dispose of additional non-core assets located in secondary markets as part of its capital recycling initiatives.

Balance Sheet Highlights

At June 30, 2014, the company’s total market capitalization (including debt and equity) was $4.6 billion, comprising 129.9 million shares of common stock outstanding (on a fully diluted basis) valued at approximately $3.1 billion and approximately $1.5 billion of debt (excluding any debt premium/discount). The company’s ratio of net debt (net of cash) to total market capitalization was 31.8%. At June 30, 2014, the company had approximately $62.9 million of cash and cash equivalents on hand (including cash in escrow and restricted cash) and $133.0 million drawn on its revolving credit facilities. Subsequent to June 30, 2014, cash released from escrow and proceeds from non-core asset dispositions were applied to the company’s revolving credit facilities and as of the date of this release $55.0 million remained drawn thereunder.

FFO and Earnings Guidance

The company updated its 2014 Recurring FFO guidance to a new range of $1.25 to $1.28 per diluted share, which compares to previous guidance of $1.23 to $1.28 per diluted share. Recurring FFO excludes one-time costs pertaining to the company’s reorganization, debt extinguishment gains/losses, impairment charges, severance costs, transaction costs, gains/losses on disposal of assets, and certain other income or charges. The 2014 guidance is based on the following key assumptions:

Increase in same property NOI of 2.5% to 3.25%
Increase in same property occupancy of approximately 100 basis points
Core acquisitions of zero to $100 million in the second half of 2014
Joint venture acquisitions of zero to $100 million in the second half of 2014
Non-core dispositions of $150 million to $175 million, including the 2014 sales activity announced in this release






The following table provides a reconciliation of the range of estimated net income attributable to Equity One per diluted share to estimated FFO and Recurring FFO per diluted share for the full year 2014:

 
 
For the year ended
December 31, 2014 (1)
 
 
Low
 
High
Estimated net income attributable to Equity One
 
$
0.37

 
$
0.38

Adjustments:
 
 
 
 
Net adjustment for rounding and shares issuable to Liberty International Holdings, Ltd. (LIH)
 
(0.03
)
 
(0.03
)
Rental property depreciation and amortization including pro rata share of joint ventures
 
0.79

 
0.80

Gains on disposal of depreciable assets including pro rata share of joint ventures
 
(0.09
)
 
(0.09
)
Impairments of depreciable real estate
 
0.11

 
0.11

Earnings allocated to a noncontrolling interest (2)
 
0.08

 
0.08

 
 
 
 
 
Estimated FFO
 
1.23

 
1.25

 
 
 
 
 
Transaction costs, gain on debt extinguishment and other
 
0.02

 
0.03

Estimated Recurring FFO
 
$
1.25

 
$
1.28

 
 
 
 
 
(1) 
Does not include possible future gains or losses or the impact on operating results from other unplanned future property acquisitions or unplanned dispositions, other possible capital markets activity or possible future impairment or severance charges.
(2) 
Includes effect of distributions paid with respect to unissued shares held by a noncontrolling interest which are already included for purposes of calculating net income attributable to Equity One per diluted share.

ACCOUNTING AND OTHER DISCLOSURES

The company believes FFO (combined with the primary GAAP presentations) is a useful, supplemental measure of its 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 (loss) income (computed in accordance with GAAP), excluding gains (or losses) from sales of, or impairment charges related to, depreciable operating properties, 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.” The company makes certain adjustments to FFO, which it refers to as Recurring FFO, to account for items it does not believe are representative of ongoing operating results, including transaction costs associated with acquisition and disposition activity, severance costs and gains (or losses) on the extinguishment of debt. The company also believes that Recurring FFO is a useful, supplemental measure of its core operating performance that facilitates comparability of historical financial periods. The company believes that financial analysts, investors and stockholders are better served by the presentation of comparable period operating results generated from its FFO and Recurring FFO measures. The company’s method of calculating FFO and Recurring FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
The company uses NOI, which is a non-GAAP financial measure, internally as a performance measure and believes NOI provides useful information to investors regarding the company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis. In this release, the company has provided NOI information on a same-property basis. Information provided on a same-property basis includes the results of properties that the company consolidated, owned and operated for the entirety of both periods being compared except for properties for which significant development, redevelopment or expansion occurred during either of the periods being compared.





FFO, Recurring FFO and same-property NOI are presented to assist investors in analyzing the company’s operating performance. Neither FFO, Recurring FFO nor same-property NOI (i) represents cash flow from operations as defined by GAAP, (ii) is indicative of cash available to fund all cash flow needs, including the ability to make distributions, (iii) is an alternative to cash flow as a measure of liquidity, or (iv) should be considered as an alternative to net (loss) income (which is determined in accordance with GAAP) for purposes of evaluating the company’s operating performance. The company believes net (loss) income attributable to Equity One is the most directly comparable GAAP financial measure to FFO and Recurring FFO while (loss) income from continuing operations before tax and discontinued operations is the most directly comparable GAAP financial measure to NOI. Reconciliations of these measures to their respective comparable GAAP measures have been provided in the tables accompanying this press release.
On April 10, 2014, the Financial Accounting Standards Board (“FASB”) issued an update (ASU 2014-08) regarding the criteria for reporting discontinued operations which is effective prospectively beginning in 2015. As permitted, the company has elected to early adopt the updated standard. Therefore, beginning January 1, 2014, prospective activity related to individual properties sold or held for sale will no longer be included as discontinued operations on the consolidated statements of operations. The adoption and implementation of this ASU resulted in the operations of certain current period dispositions being classified within continuing operations in our condensed consolidated statements of operations, but did not have an impact on our financial position or cash flows.

CONFERENCE CALL/WEB CAST INFORMATION

Equity One will host a conference call on Thursday, July 31, 2014 at 9:00 a.m. Eastern Time to review its 2014 second quarter earnings and operating results. Stockholders, analysts and other interested parties can access the earnings call by dialing (888) 317-6003 (U.S.), (866) 284-3684 (Canada) or (412) 317-6061 (international) using pass code 3734983. 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.

A replay of the conference call will be available on Equity One’s web site for future review. Interested parties may also access the telephone replay by dialing (877) 344-7529 (U.S.), (855) 669-9658 (Canada) or (412) 317-0088 (international) using pass code 10047826 through August 22, 2014.


FOR ADDITIONAL INFORMATION

For a copy of the company’s second quarter supplemental information package, please access the “Investors” section of Equity One’s web site at www.equityone.net under “About Us”. To be included in the company’s e-mail distributions for press releases and other company notices, please send e-mail addresses to Investor Relations at investorrelations@equityone.net.

ABOUT EQUITY ONE, INC.

As of June 30, 2014, our consolidated shopping center portfolio comprised 135 properties, including 113 retail properties and six non-retail properties totaling approximately 14.6 million square feet of gross leasable area, or GLA, 11 development or redevelopment properties with approximately 1.8 million square feet of GLA upon completion, and five land parcels. As of June 30, 2014, our consolidated shopping center occupancy was 94.2% and included national, regional and local tenants. Additionally, we had joint venture interests in 18 retail properties and two office buildings totaling approximately 3.2 million square feet of GLA.

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. Forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “might,” “would,” “expect,” “anticipate,” “estimate,” “could,” “should,” “believe,” “intend,” “project,” “forecast,” “target,” “plan,” or “continue” or the negative of these words or other variations or comparable terminology. Although Equity One believes that the expectations reflected in such forward-looking statements are 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 volatility in the capital markets and changes in borrowing rates; 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; the risks that Equity One may not be able to proceed with or obtain necessary approvals for development or redevelopment projects or that it may take more time to complete such projects or incur costs greater than anticipated; the availability of properties for





acquisition; the timing, extent and ultimate proceeds realized from asset dispositions; the extent to which continuing supply constraints occur in geographic markets where Equity One owns properties; the success of its efforts to lease up vacant space; changes in key personnel; the effects of natural and other disasters; the ability of Equity One to successfully integrate the operations and systems of acquired companies and properties; changes in Equity One’s credit ratings; and other risks, which are described in Equity One’s filings with the Securities and Exchange Commission






EQUITY ONE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
June 30, 2014 and December 31, 2013
(Unaudited)
(In thousands, except share par value amounts)
 
June 30,
2014
 
December 31,
2013
ASSETS
 
 
 
Properties:
 
 
 
Income producing
$
3,097,700

 
$
3,153,131

Less: accumulated depreciation
(359,658
)
 
(354,166
)
Income producing properties, net
2,738,042

 
2,798,965

Construction in progress and land held for development
169,916

 
104,464

Properties held for sale
53,162

 
13,404

Properties, net
2,961,120

 
2,916,833

Cash and cash equivalents
29,316

 
25,583

Cash held in escrow and restricted cash
33,616

 
10,912

Accounts and other receivables, net
13,709

 
12,872

Investments in and advances to unconsolidated joint ventures
82,310

 
91,772

Loans receivable, net

 
60,711

Goodwill
6,180

 
6,377

Other assets
227,314

 
229,599

TOTAL ASSETS
$
3,353,565

 
$
3,354,659

 
 
 
 
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
 
 
 
Liabilities:
 
 
 
Notes payable:
 
 
 
Mortgage notes payable
$
408,554

 
$
430,155

Unsecured senior notes payable
731,136

 
731,136

Term loan
250,000

 
250,000

Unsecured revolving credit facilities
133,000

 
91,000

 
1,522,690

 
1,502,291

Unamortized premium on notes payable, net
4,607

 
6,118

Total notes payable
1,527,297

 
1,508,409

Other liabilities:
 
 
 
Accounts payable and accrued expenses
51,107

 
44,227

Tenant security deposits
8,602

 
8,928

Deferred tax liability
12,382

 
11,764

Other liabilities
175,144

 
177,383

Liabilities associated with properties held for sale
281

 
33

Total liabilities
1,774,813

 
1,750,744

Redeemable noncontrolling interests
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 – 150,000 shares authorized, 117,997 and 117,647 shares issued
   and outstanding at June 30, 2014 and December 31, 2013, respectively
1,180

 
1,176

Additional paid-in capital
1,700,834

 
1,693,873

Distributions in excess of earnings
(330,834
)
 
(302,410
)
Accumulated other comprehensive (loss) income
(672
)
 
2,544

Total stockholders’ equity of Equity One, Inc.
1,370,508

 
1,395,183

Noncontrolling interests
207,255

 
207,743

Total equity
1,577,763

 
1,602,926

TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
$
3,353,565

 
$
3,354,659







EQUITY ONE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the three and six months ended June 30, 2014 and 2013
(Unaudited)
(In thousands, except per share data)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2014
 
2013
 
2014
 
2013
 
REVENUE:
 
 
 
 
 
 
 
 
Minimum rent
$
66,295

 
$
60,949

 
$
136,546

 
$
121,336

 
Expense recoveries
19,631

 
19,675

 
39,391

 
38,266

 
Percentage rent
933

 
628

 
3,114

 
2,665

 
Management and leasing services
584

 
484

 
1,213

 
898

 
Total revenue
87,443

 
81,736

 
180,264

 
163,165

 
COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
Property operating
22,613

 
22,241

 
44,399

 
43,897

 
Depreciation and amortization
27,666

 
22,797

 
53,933

 
44,530

 
General and administrative
8,872

 
9,673

 
19,786

 
18,567

 
Total costs and expenses
59,151

 
54,711

 
118,118

 
106,994

 
INCOME BEFORE OTHER INCOME AND EXPENSE, TAX AND
   DISCONTINUED OPERATIONS
28,292

 
27,025

 
62,146

 
56,171

 
OTHER INCOME AND EXPENSE:
 
 
 
 
 
 
 
 
Investment income
28

 
2,209

 
199

 
4,413

 
Equity in income of unconsolidated joint ventures
1,268

 
615

 
9,529

 
1,050

 
Other income
5

 
162

 
2,846

 
162

 
Interest expense
(16,086
)
 
(16,701
)
 
(32,986
)
 
(33,937
)
 
Amortization of deferred financing fees
(601
)
 
(603
)
 
(1,200
)
 
(1,209
)
 
Gain on extinguishment of debt

 
107

 
1,074

 
107

 
Impairment loss
(13,892
)
 
(2,662
)
 
(13,892
)
 
(2,662
)
 
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE TAX AND
   DISCONTINUED OPERATIONS
(986
)
 
10,152

 
27,716

 
24,095

 
Income tax provision of taxable REIT subsidiaries
(79
)
 
(7
)
 
(612
)
 
(21
)
 
(LOSS) INCOME FROM CONTINUING OPERATIONS
(1,065
)
 
10,145

 
27,104

 
24,074

 
DISCONTINUED OPERATIONS:
 
 
 
 
 
 
 
 
Operations of income producing properties
167

 
1,276

 
(65
)
 
3,523

 
(Loss) gain on disposal of income producing properties
(144
)
 
25,663

 
3,152

 
36,859

 
Impairment loss

 
(128
)
 

 
(128
)
 
Income tax provision of taxable REIT subsidiaries

 
(779
)
 

 
(860
)
 
INCOME FROM DISCONTINUED OPERATIONS
23

 
26,032

 
3,087

 
39,394

 
Gain on sale of operating properties
1,141

 

 
883

 

 
NET INCOME
99

 
36,177

 
31,074

 
63,468

 
Net income attributable to noncontrolling interests - continuing operations
(2,511
)
 
(2,511
)
 
(7,212
)
 
(5,204
)
 
Net loss (income) attributable to noncontrolling interests - discontinued operations
1

 
(28
)
 
3

 
(33
)
 
NET (LOSS) INCOME ATTRIBUTABLE TO EQUITY ONE, INC.
$
(2,411
)
 
$
33,638

 
$
23,865

 
$
58,231

 
 
 
 
 
 
 
 
 
 
(LOSS) EARNINGS PER COMMON SHARE - BASIC:
 
 
 
 
 
 
 
 
Continuing operations
$
(0.02
)
 
$
0.06

 
$
0.17

 
$
0.16

 
Discontinued operations

 
0.22

 
0.03

 
0.33

 
 
$
(0.02
)

$
0.28

 
$
0.20


$
0.49

 
Number of Shares Used in Computing Basic (Loss) Earnings per Share
117,813

 
117,385

 
117,744

 
117,209

 
(LOSS) EARNINGS PER COMMON SHARE - DILUTED:
 
 
 
 
 
 
 
 
Continuing operations
$
(0.02
)
 
$
0.06

 
$
0.17

 
$
0.16

 
Discontinued operations

 
0.22

 
0.03

 
0.33

 
 
$
(0.02
)

$
0.28

 
$
0.20


$
0.49

 
Number of Shares Used in Computing Diluted (Loss) Earnings per Share
117,813

 
117,749

 
117,981

 
117,535

 
CASH DIVIDENDS DECLARED PER COMMON SHARE
$
0.22

 
$
0.22

 
$
0.44

 
$
0.44

 






EQUITY ONE, INC. AND SUBSIDIARIES
Reconciliation of Net (Loss) Income Attributable to Equity One to FFO and to Recurring FFO
The following table reflects the reconciliation of FFO and Recurring FFO to net (loss) income attributable to Equity One, Inc. the most directly comparable GAAP measure, for the periods presented.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
Net (loss) income attributable to Equity One, Inc.
$
(2,411
)
 
$
33,638

 
$
23,865

 
$
58,231

Adjustments:
 
 
 
 
 
 
 
Rental property depreciation and amortization, net of noncontrolling
     interest (1)
27,385

 
23,768

 
53,320

 
46,756

Pro rata share of real estate depreciation and amortization from
     unconsolidated joint ventures
1,070

 
1,076

 
2,121

 
2,161

Gain on disposal of depreciable assets, net of tax (1)
(997
)
 
(24,430
)
 
(4,005
)
 
(35,626
)
Pro rata share of gains on disposal of depreciable assets from
    unconsolidated joint ventures, net of noncontrolling interest (2)

 

 
(8,007
)
 

Impairments of depreciable real estate, net of tax (1)
13,892

 
215

 
13,892

 
215

Funds From Operations
38,939

 
34,267

 
81,186

 
71,737

   Earnings allocated to noncontrolling interest (3)
2,499

 
2,499

 
4,998

 
4,998

Funds From Operations Available to Diluted Common
   Shareholders
41,438

 
36,766

 
86,184

 
76,735

   Transaction costs associated with acquisition and disposition
       activity, net of tax (1)
215

 
960

 
1,655

 
1,264

   Impairment of land held for development 

 
2,520

 

 
2,520

   Reorganization adjustments (4)
(247
)
 

 
(247
)
 

   (Gain) loss on debt extinguishment, net of tax (1)

 
(107
)
 
(742
)
 
575

   Gain on land and outparcel sales, net of controlling interests (1)

 
(461
)
 
(30
)
 
(461
)
Recurring Funds From Operations Available to Diluted Common
     Shareholders
$
41,406

 
$
39,678

 
$
86,820

 
$
80,633

_______________________
(1) Includes amounts classified as discontinued operations.
(2) Includes the remeasurement of the fair value of our equity interest in Talega Village Center JV, LLC, the owner of Talega Village Center, of $2.2 million, net of the related noncontrolling interest, for the six months ended June 30, 2014.
(3) Represents earnings allocated to unissued shares held by LIH, which have been excluded for purposes of calculating earnings per diluted share for all periods presented. FFO and Recurring FFO calculations include earnings allocated to LIH and the respective weighted average share totals include the LIH shares outstanding as their inclusion is dilutive.
(4) Includes the effect of severance, signing bonus payments and other costs associated with the reorganization announcement made on June 30, 2014, net of the reversal of non-cash stock-based compensation expense recognized in prior periods associated with stock awards previously granted to our former CEO.
Funds from Operations and Recurring FFO are non-GAAP financial measures. 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. We believe that Recurring FFO provides additional comparability between historical financial periods. See “Accounting and Other Disclosures” above.





Reconciliation of Net Income Attributable to Equity One to Funds from Operations per Diluted Share
The following table reflects the reconciliation of FFO per diluted share and Recurring FFO per diluted share to earnings per diluted share attributable to Equity One, Inc. the most directly comparable GAAP measure, for the periods presented.
 
Three months ended
 
Six months ended
 
June 30, 2014
 
June 30, 2013
 
June 30, 2014
 
June 30, 2013
(Loss) earnings per diluted share attributable to Equity One, Inc.
$
(0.02
)
 
$
0.28

 
$
0.20

 
$
0.49

Adjustments:
 
 
 
 
 
 
 
Rental property depreciation and amortization, net of noncontrolling
    interest
0.21

 
0.18

 
0.41

 
0.36

Earnings allocated to noncontrolling interest (1)
0.02

 
0.02

 
0.04

 
0.04

Net adjustment for rounding and earnings attributable to unvested
     shares (2)

 
(0.02
)
 
(0.02
)
 
(0.03
)
Pro rata share of real estate depreciation and amortization from
     unconsolidated joint ventures
0.01

 
0.01

 
0.02

 
0.02

Gain on disposal of depreciable assets, net of tax
(0.01
)
 
(0.19
)
 
(0.03
)
 
(0.28
)
Pro rata share of gains on disposal of depreciable assets from
     unconsolidated joint ventures, net of noncontrolling interest

 

 
(0.06
)
 

Impairments of depreciable real estate, net of tax
0.11

 

 
0.11

 

Funds From Operations per Diluted Share
$
0.32

 
$
0.28

 
$
0.67

 
$
0.60

 
 
 
 
 
 
 
 
Funds From Operations per Diluted Share
$
0.32

 
$
0.28

 
$
0.67

 
$
0.60

Transaction costs associated with acquisition and disposition
     activity, net of tax

 
0.01

 
0.01

 
0.01

Impairment of land held for development

 
0.02

 

 
0.02

Gain on debt extinguishment, net of tax

 

 
(0.01
)
 

Recurring Funds From Operations per Diluted Share
$
0.32

 
$
0.31

 
$
0.67

 
$
0.63

Weighted average diluted shares (in thousands) (3)
129,441

 
129,107

 
129,338

 
128,893

______________________
(1) Represents earnings allocated to unissued shares held by LIH, which have been excluded for purposes of calculating earnings per diluted share for all periods presented. FFO and Recurring FFO calculations include earnings allocated to LIH and the respective weighted average share totals include the LIH shares outstanding as their inclusion is dilutive.
(2) Represents an adjustment to compensate for earnings allocated to unvested shares and shares issuable to LIH and for the rounding of the individual calculations.
(3) Weighted average diluted shares used to calculate FFO per share and Recurring FFO per share for all the periods presented are higher than the GAAP diluted weighted average shares as a result of the dilutive impact of the 11.4 million joint venture units held by LIH which are convertible into our common stock, and also as a result of employee stock options. These convertible units are not included in the diluted weighted average share count for GAAP purposes because their inclusion is anti-dilutive.






EQUITY ONE, INC. AND SUBSIDIARIES
Reconciliation of Same-Property NOI to (Loss) Income from Continuing Operations Before Tax and Discontinued Operations
The following table reflects the reconciliation of same-property NOI to (loss) income from continuing operations before tax and discontinued operations, the most directly comparable GAAP measure, for the periods presented.
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2014
 
2013
 
2014
 
2013
Same-property net operating income
$
47,219

 
$
46,012

 
$
95,263

 
$
92,951

Adjustments (1)
202

 
423

 
1,659

 
(20
)
Same-property net operating income before adjustments
47,421

 
46,435

 
96,922

 
92,931

Non same-property net operating income
9,320

 
6,559

 
18,822

 
13,118

Net operating income
56,741

 
52,994

 
115,744

 
106,049

Add:
 
 
 
 
 
 
 
Straight line rent adjustment
1,076

 
211

 
1,738

 
722

Accretion of below market lease intangibles, net
3,675

 
3,211

 
11,656

 
6,411

Management and leasing services
584

 
484

 
1,213

 
898

Elimination of intersegment expenses
2,754

 
2,595

 
5,514

 
5,188

Investment income
28

 
2,209

 
199

 
4,413

Equity in income of unconsolidated joint ventures
1,268

 
615

 
9,529

 
1,050

Gain on extinguishment of debt

 
107

 
1,074

 
107

Other income
5

 
162

 
2,846

 
162

Less:
 
 
 
 
 
 
 
Depreciation and amortization
27,666

 
22,797

 
53,933

 
44,530

General and administrative
8,872

 
9,673

 
19,786

 
18,567

Interest expense
16,086

 
16,701

 
32,986

 
33,937

Amortization of deferred financing fees
601

 
603

 
1,200

 
1,209

Impairment loss
13,892

 
2,662

 
13,892

 
2,662

(Loss) income from continuing operations before tax and discontinued operations
$
(986
)
 
$
10,152

 
$
27,716

 
$
24,095

_______________
(1) Includes adjustments for items that affect the comparability of the same-property results. Such adjustments include: common area maintenance costs and real estate taxes related to a prior period, revenue and expenses associated with outparcels sold, settlement of tenant disputes, lease termination costs, or other similar matters that affect comparability.
Same-property NOI is a non-GAAP financial measure. We believe that same-property NOI, is a widely used and appropriate supplemental measure of operating performance for REITs, and that it provides a relevant basis for comparison among REITs. See “Accounting and Other Disclosures” above.