# EDGAR Filing Document

**Accession Number:** 0001029800
**File Stem:** 0001029800-23-000025
**Filing Date:** 2023-2
**Character Count:** 82480
**Document Hash:** 44f55fd740f15cfff2ff0d6b69bd4899
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001029800-23-000025.hdr.sgml**: 20230207

**ACCESSION NUMBER**: 0001029800-23-000025

**CONFORMED SUBMISSION TYPE**: ARS

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20221031

**FILED AS OF DATE**: 20230207

**DATE AS OF CHANGE**: 20230207

**EFFECTIVENESS DATE**: 20230207

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** URSTADT BIDDLE PROPERTIES INC
- **CENTRAL INDEX KEY:** 0001029800
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **IRS NUMBER:** 042458042
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** ARS
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-12803
- **FILM NUMBER:** 23592936

**BUSINESS ADDRESS:**
- **STREET 1:** C/O URSTADT BIDDLE PROPERTIES INC.
- **STREET 2:** 321 RAILROAD AVENUE
- **CITY:** GREENWICH
- **STATE:** CT
- **ZIP:** 06830
- **BUSINESS PHONE:** 2038638200

**MAIL ADDRESS:**
- **STREET 1:** 321 RAILROAD AVENUE
- **CITY:** GREENWICH
- **STATE:** CT
- **ZIP:** 06830

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HRE PROPERTIES INC
- **DATE OF NAME CHANGE:** 19961230

### Attached PDF Documents

**Attachment 1:** `urstadtbiddlefiscal2022_ars.pdf`

UBP
URSTADT BIDDLE PROPERTIES INC.

# 2022 Annual Report

![img-0.jpeg](img-0.jpeg)

![img-1.jpeg](img-1.jpeg)

![img-2.jpeg](img-2.jpeg)

![img-3.jpeg](img-3.jpeg)

53 consecutive years of uninterrupted dividends.

UBP
URSTADT BIDDLE PROPERTIES INC.

# URSTADT BIDDLE PROPERTIES INC.

Urstadt Biddle Properties Inc. is a self-administered publicly held real estate investment trust providing investors with a means of participating in the ownership of income-producing properties.

Our investment properties consist primarily of neighborhood and community shopping centers in the metropolitan New York tri-state area outside of the City of New York.

Class A Common Shares, Common Shares, Series H Preferred Shares and Series K Preferred Shares of the Company trade on the New York Stock Exchange under the symbols “UBA,” “UBP,” “UBPPRH” and “UBPPRK.”

# CONTENTS

| Selected Financial Data | 1 |
| --- | --- |
| Letter to Our Stockholders | 2 |
| Map of Investment Properties | 8 |
| Investment Portfolio | 12 |
| Financials | 13 |
| Management’s Discussion and Analysis of Financial Condition and Results of Operations | 42 |
| Directors and Officers | 68 |

## SELECTED FINANCIAL DATA

(Amounts in thousands, except share data)

| Year Ended October 31, | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- |
| Balance Sheet Data: |  |  |  |  |  |
| Total Assets | $997,326 | $973,852 | $1,010,179 | $1,072,304 | $1,008,233 |
| Revolving Credit Lines and Unsecured Term Loan | $30,500 | $ - | $35,000 | $ - | $28,595 |
| Mortgage Notes Payable and Other Loans | $302,316 | $296,449 | $299,434 | $306,606 | $293,801 |
| Preferred Stock Called for Redemption | $ - | $ - | $ - | $75,000 | $ - |
| Operating Data: |  |  |  |  |  |
| Total Revenues | $143,103 | $135,581 | $126,745 | $136,882 | $135,352 |
| Total Expenses and Payments to Noncontrolling Interests | $105,802 | $101,716 | $100,604 | $101,630 | $100,320 |
| Income from Continuing Operations | $43,274 | $50,928 | $26,070 | $41,613 | $42,183 |
| Per Share Data: |  |  |  |  |  |
| Net Income Applicable to Common and Class A Common Stockholders - |  |  |  |  |  |
| Basic: |  |  |  |  |  |
| Class A Common Stock | $ .69 | $ .89 | $ .23 | $ .59 | $ .68 |
| Common Stock | $ .62 | $ .80 | $ .20 | $ .53 | $ .61 |
| Net Income Applicable to Common and Class A Common Stockholders - |  |  |  |  |  |
| Diluted: |  |  |  |  |  |
| Class A Common Stock | $ .68 | $ .88 | $ .22 | $ .58 | $ .67 |
| Common Stock | $ .61 | $ .79 | $ .20 | $ .52 | $ .60 |
| Cash Dividends Per Share on: |  |  |  |  |  |
| Class A Common Stock | $ .95 | $ .74 | $ .77 | $1.10 | $1.08 |
| Common Stock | $ .858 | $ .664 | $ .688 | $ .98 | $ .96 |
| Other Data: |  |  |  |  |  |
| Net Cash Flow Provided by (Used in): |  |  |  |  |  |
| Operating Activities | $77,751 | $73,669 | $61,883 | $72,317 | $71,584 |
| Investing Activities | $(44,232) | $(445) | $(18,820) | $(14,739) | $(20,540) |
| Financing Activities | $(42,610) | $(89,962) | $(96,347) | $26,216 | $(49,433) |
| Funds from Operations (Note) | $56,545 | $52,251 | $45,172 | $51,955 | $55,171 |

### TOTAL REVENUES

(In thousands)

![img-4.jpeg](img-4.jpeg)

### FUNDS FROM OPERATIONS

(In thousands)

![img-5.jpeg](img-5.jpeg)

### COMBINED DIVIDENDS PAID

### ON COMMON AND CLASS A COMMON SHARES (In thousands)

![img-6.jpeg](img-6.jpeg)

Note: The Company has adopted the definition of Funds from Operations (FFO) suggested by the National Association of Real Estate Investment Trusts (NAREIT) and defines FFO as net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from sales of properties plus real estate related depreciation and amortization and after adjustments for unconsolidated joint ventures. For a reconciliation of net income and FFO, see Management's Discussion and Analysis of Financial Condition and Results of Operations on page 42 and 'Non-GAAP Financial Measures Reconciliations' at the end of this report. FFO does not represent cash flows from operating activities in accordance with generally accepted accounting principles and should not be considered an alternative to net income as an indicator of the Company's operating performance.

1

## LETTER TO OUR STOCKHOLDERS

*These are challenging times for investors*, but Urstadt Biddle Properties Inc. is well-positioned to continue to succeed. We are not immune from the effects of high inflation, rapidly-rising interest rates, labor shortages and a slowing economy, and we understand that the average American citizen is worried about making ends meet. However, despite these challenges, we believe that our company is a smart long-term investment. Our strategy is sound, our results are strong, and our future is bright.

- For over 30 years, we have carefully acquired and redeveloped a unique, irreplaceable portfolio of well-located and primarily grocery-anchored shopping centers in the wealthy suburban markets surrounding New York City. 87% of the gross leasable area in our portfolio is comprised of properties anchored by a grocery store, drug store or wholesale club.
- Securing a location to profitably build a new grocery store in our market is extremely difficult, given the lack of land available for development, challenging approval processes and increased labor and material costs. Thus, we believe that barriers to new competition exist in our markets that make our portfolio increasingly valuable.
- In fiscal 2022, our year-over-year gross revenues rose 5% to $143 million, our highest ever.
- In fiscal 2022, our year-over-year Funds From Operations (FFO)1 rose 8% to $56.5 million or $1.47 per diluted Class A Common share, our highest ever.
- In fiscal 2022, the percentage of our portfolio leased rose 1.1% to 93%, inching closer to our twenty-year historical average of 95%.
- In December 2022, we announced an approximately 5% increase in the dividends on our Common and Class A Common shares.
- Our leverage ratio (debt: total assets) is 33%, one of the lowest of any comparable retail REIT, we benefit from low, fixed-rate debt, and we have no mortgages maturing until 2024.

![img-7.jpeg](img-7.jpeg)

**JOHN T. HAYES**
Senior Vice President, Chief Financial Officer and Treasurer

![img-8.jpeg](img-8.jpeg)

**CHRISTOPHER PEREZ**
Vice President and Controller

1 A reconciliation of GAAP net income to FFO is provided in the "Non-GAAP Financial Measures Reconciliations" at the end of this Annual Report.

2

![img-9.jpeg](img-9.jpeg)

DeCICCO'S PLAZA, EASTCHESTER, NEW YORK

- The pandemic and social issues have accelerated a migration of people from NYC to the surrounding suburbs where our properties are located, and a large portion of NYC office workers are now permitted to work remotely at least part of the time. The resulting increase in daytime population means that people are spending more money at our properties.
- We have a seasoned team of professionals managing our business and a highly-experienced Board of Directors. We know our markets and business better than anyone, and we are wholly-focused on our portfolio and growing shareholder value.

![img-10.jpeg](img-10.jpeg)

**MIYUN SUNG**
Senior Vice President, Chief
Legal Officer and Secretary

## E-COMMERCE

The debate over the relevance and viability of brick-and-mortar retail has largely been settled. Physical stores are a required component of the successful omni-channel business model that many retailers now follow, and physical stores are obviously a key component of the business model for restaurant, medical,

3

![img-11.jpeg](img-11.jpeg)

**POMPTON LAKES TOWN SQUARE, POMPTON LAKES, NEW JERSEY**

service and entertainment uses. Notably, Amazon recently terminated leases for millions of square feet of warehouse space and laid off thousands of employees, while allowing many newly-built Amazon Fresh grocery stores to sit empty as the company apparently reassesses its foray into the highly-competitive brick-and-mortar grocery store business.

## LEASING AND DEVELOPMENT

Our portfolio continues to recover well from the pandemic, which caused overall occupancy to fall approximately 3% in 2020. Although some of our tenants are still struggling, the vast majority are paying full rent and have figured out how to conduct business in a post-pandemic world. The difficulties of the past few years weeded out many weaker retailers, and those that survived are in better financial condition. In 2022, we signed 172 renewal leases for 752,000 square feet (16.4% of our consolidated portfolio) at an average rent increase of 1.8%, and we signed

![img-12.jpeg](img-12.jpeg)

**LINDA LACEY**
Senior Vice President
Director of Leasing

![img-13.jpeg](img-13.jpeg)

**JOSEPH ALLEGRETTI**
Vice President
Leasing

4

![img-14.jpeg](img-14.jpeg)

**NICHOLAS CAPUANO**
Vice President
Real Estate Counsel

![img-15.jpeg](img-15.jpeg)

**SUZANNE MOORE**
Vice President and Director of
Accounts Receivable

![img-16.jpeg](img-16.jpeg)

**ANDREW ALBRECHT**
Vice President
Director of
Management and Construction

![img-17.jpeg](img-17.jpeg)

**JAMES M. ARIES**
Senior Vice President
Director of Acquisitions

80 new leases for 190,000 square feet, thus increasing total occupancy to 93%.
We have a robust leasing pipeline, and we are hopeful of returning this year to our
twenty-year historical average occupancy rate of 95%.

This past year we focused on the work needed to deliver vacant spaces to our new
tenants. We also completed a number of façade renovations, and we imminently
expect to complete the development of a wholly-owned 75,000 square foot
self-storage facility at our Pompton Lakes, NJ property, which will be managed
by Extra Space Storage.

## ACQUISITIONS AND INVESTMENT

We purchased two properties in 2022, Shelton Square Shopping Center and an
adjacent gas station parcel, both in Shelton, CT (Fairfield County). Shelton Square
is a 187,000 square foot center anchored by a 67,000 square foot Stop & Shop.
An interesting aspect of this acquisition is that, in addition to its store, Stop &
Shop leased a 70,000 square foot space under an old, below-market lease that it
assumed years ago from Bradlees, a now-defunct department store chain. As 24,000
square feet within the former Bradlees space remained vacant and Stop & Shop had
insufficient remaining lease term to secure a new subtenant, we concluded a deal
with Stop & Shop in December 2022 to take back the entire former Bradlees space.
We simultaneously entered into a new lease with HomeGoods for the vacancy. This
transaction will result in an improved return on our investment in Shelton Square
while improving the tenant mix, and we expect HomeGoods to open in summer 2023.

The acquisitions environment in our market for grocery-anchored shopping
centers is currently very difficult, largely as a result of uncertainty with respect
to inflation and the interest rate environment. Many sellers of grocery-anchored
shopping centers seem to believe that rising rates are temporary and will soon revert
back to historic lows, leading them to value their properties at 5%+ cap rates.
With the 10-year Treasury yielding close to 4%, however, it is difficult to justify
buying properties at those prices. As a result of this bid-ask disconnect, transaction
opportunities have been few, and we deem it prudent to remain disciplined and
focused on our existing portfolio.

5

![img-18.jpeg](img-18.jpeg)

Given our knowledge of the value of our portfolio, we determined in the fourth quarter of fiscal 2022 that the stock market was not reflective of the value of our underlying assets. Therefore, we took the opportunity to repurchase approximately 3% of our combined outstanding Common and Class A Common shares. The average cost we paid was more than 10% below our fiscal year-end share prices.

## ENVIRONMENTAL SUSTAINABILITY

We continue to install solar projects on rooftops at our properties, add electric vehicle charging stations in our parking lots and convert parking lot and building lighting to LED. As of fiscal year-end, we had solar projects at 18 properties and EV charging stations at 20 properties, with additional solar projects and EV charging stations currently under development. In total, our existing solar projects produced approximately 24 million kilowatt-hours (kWh) of electricity from our first installation in 2010 through June 2022. We also foresee future opportunities to add battery storage facilities for electricity at our properties and are in the process of obtaining municipal approvals to do this where the right specifications exist.

![img-19.jpeg](img-19.jpeg)

**STEPHAN A. RAPAGLIA**
Senior Vice President, Chief Operating Officer, Real Estate Counsel and Assistant Secretary

6

![img-20.jpeg](img-20.jpeg)

## OUTLOOK

We feel we are in a good place with the wind at our backs. The fundamentals of our business are good. Demand for space in our shopping centers is rising and absorption of space is positive. Supply is constrained as it is very difficult to build new properties that will compete with our existing properties, and we currently own over 500 acres of land improved with retail properties. In some instances, our land, over time, may have more value for multi-family development opportunities than for retail uses, and we are exploring greater use flexibility with certain forward-thinking municipalities. We have a solid team of long-term dedicated employees and a board of directors which understands our business, and we are confident in the strength of our portfolio and optimistic about the prospects of grocery-anchored retail real estate.

WILLING L. BIDDLE
President and Chief Executive Officer

CHARLES D. URSTADT
Chairman

January 2023

![img-21.jpeg](img-21.jpeg)

WILLING L. BIDDLE

![img-22.jpeg](img-22.jpeg)

CHARLES D. URSTADT

7

UBP
URSTADT BIDDLE PROPERTIES INC.

![img-23.jpeg](img-23.jpeg)

1
Corporate Headquarters, Greenwich

![img-24.jpeg](img-24.jpeg)

2
Greenwich Commons, Greenwich

![img-25.jpeg](img-25.jpeg)

2
Cos Cob Plaza, Greenwich

![img-26.jpeg](img-26.jpeg)

2
Kings Shopping Center, Greenwich

![img-27.jpeg](img-27.jpeg)

2
Cos Cob Commons, Greenwich

![img-28.jpeg](img-28.jpeg)

3
Ridgeway Shopping Center, Stamford

![img-29.jpeg](img-29.jpeg)

3
Newfield Green, Stamford

![img-30.jpeg](img-30.jpeg)

3
970 High Ridge Road, Stamford

![img-31.jpeg](img-31.jpeg)

3
High Ridge Shopping Center, Stamford

![img-32.jpeg](img-32.jpeg)

8

## NEW HAMPSHIRE

![img-0.jpeg](img-0.jpeg)

4
Goodwives Shopping Center, Darien

![img-1.jpeg](img-1.jpeg)

5
Fairfield Centre, Fairfield

![img-2.jpeg](img-2.jpeg)

6
Ridgefield Center, Ridgefield

![img-3.jpeg](img-3.jpeg)

6
470 Main Street, Ridgefield

![img-4.jpeg](img-4.jpeg)

7
Airport Plaza, Danbury

![img-5.jpeg](img-5.jpeg)

7
Danbury Square, Danbury

![img-6.jpeg](img-6.jpeg)

8
Veterans Plaza, New Milford

![img-7.jpeg](img-7.jpeg)

8
New Milford Plaza, New Milford

![img-8.jpeg](img-8.jpeg)

8
Fairfield Plaza, New Milford

![img-9.jpeg](img-9.jpeg)

9
The Hub Center, Bethel

![img-10.jpeg](img-10.jpeg)

10
The Dock, Stratford

![img-11.jpeg](img-11.jpeg)

11
Shelton Square, Shelton

![img-12.jpeg](img-12.jpeg)

12
Orange Meadows Shopping Center, Orange

![img-13.jpeg](img-13.jpeg)

13
Aldi Square, Derby

![img-14.jpeg](img-14.jpeg)

14
Carmel ShopRite Center, Carmel

9

![img-15.jpeg](img-15.jpeg)

Putnam Plaza, Carmel

![img-16.jpeg](img-16.jpeg)

Lakeview Shopping Center, Brewster

![img-17.jpeg](img-17.jpeg)

Towne Centre Shopping Center, Somers

![img-18.jpeg](img-18.jpeg)

Somers Commons, Somers

![img-19.jpeg](img-19.jpeg)

Heritage 202 Center, Somers

![img-20.jpeg](img-20.jpeg)

Village Commons, Katonah

![img-21.jpeg](img-21.jpeg)

Staples Plaza, Yorktown Heights

![img-22.jpeg](img-22.jpeg)

Arcadian Shopping Center, Ossining

![img-23.jpeg](img-23.jpeg)

Chilmark Shopping Center, Briarcliff Manor

![img-24.jpeg](img-24.jpeg)

76 N Main Street, New City

![img-25.jpeg](img-25.jpeg)

Orangetown Shopping Center, Orangeburg

![img-26.jpeg](img-26.jpeg)

Harrison Market Square, Harrison

![img-27.jpeg](img-27.jpeg)

Pelham Manor Plaza, Pelham

![img-28.jpeg](img-28.jpeg)

DeCicco's Plaza, Eastchester

![img-29.jpeg](img-29.jpeg)

Eastchester Plaza, Eastchester

![img-30.jpeg](img-30.jpeg)

M&T Bank, Bronxville

![img-31.jpeg](img-31.jpeg)

Midway Shopping Center, Scarsdale

![img-32.jpeg](img-32.jpeg)

Tanglewood Shopping Center, Yonkers

10

![img-33.jpeg](img-33.jpeg)

McLean Plaza, Yonkers

![img-34.jpeg](img-34.jpeg)

H-Mart Plaza, Fort Lee

![img-35.jpeg](img-35.jpeg)

Washington Commons, Dumont

![img-36.jpeg](img-36.jpeg)

Van Houten Plaza, Passaic

![img-37.jpeg](img-37.jpeg)

Emerson Shopping Plaza, Emerson

![img-38.jpeg](img-38.jpeg)

Waldwick Plaza, Waldwick

![img-39.jpeg](img-39.jpeg)

Rite Aid, Waldwick

![img-40.jpeg](img-40.jpeg)

Chestnut Ridge Shopping Center, Montvale

![img-41.jpeg](img-41.jpeg)

Cedar Hill Shopping Center, Wyckoff

![img-42.jpeg](img-42.jpeg)

Midland Park Shopping Center, Midland Park

![img-43.jpeg](img-43.jpeg)

Meadtown Shopping Center, Kinnelon

![img-44.jpeg](img-44.jpeg)

Pompton Lakes Town Square, Pompton Lakes

![img-45.jpeg](img-45.jpeg)

Boonton Acme Shopping Center, Boonton

![img-46.jpeg](img-46.jpeg)

Valley Ridge Shopping Center, Wayne

![img-47.jpeg](img-47.jpeg)

Bloomfield Crossing, Bloomfield

![img-48.jpeg](img-48.jpeg)

Ferry Plaza, Newark

![img-49.jpeg](img-49.jpeg)

Village Shopping Center, New Providence

![img-50.jpeg](img-50.jpeg)

Gateway Plaza, Riverhead

11

![img-51.jpeg](img-51.jpeg)

## INVESTMENT PORTFOLIO (as of January 11, 2023)

UBP owns or has equity interests in 77 properties which total 5,307,000 square feet.

| MAP | LOCATION | SQUARE FEET | PRINCIPAL TENANT | PROPERTY TYPE |
| --- | --- | --- | --- | --- |
| CONNECTICUT |  |  |  |  |
| Fairfield County, CT |  |  |  |  |
| 3 | Stamford | 374,000 | Stop & Shop Supermarket | Shopping center |
| 10 | Stratford | 281,000 | Stop & Shop Supermarket/ BJ'S Wholesale Club | Shopping center |
| 7 | Danbury | 194,000 | Christmas Tree Shops | Shopping center |
| 11 | Shelton | 189,000 | Stop & Shop Supermarket | Shopping center |
| 4 | Darien | 96,000 | Stop & Shop Supermarket | Shopping center |
| 3 | Stamford | 87,000 | Trader Joe's Supermarket | Shopping center |
| 5 | Stamford | 74,000 | Grade A Market | Shopping center |
| 6 | Ridgefield | 62,000 | Keller Williams | Street retail |
| 5 | Fairfield | 62,000 | Marshalls | Shopping center |
| 1 | Greenwich | 58,000 | UBP | 5 Office buildings |
| 2 | Cos Cob | 48,000 | CVS | Retail/Office |
|  | Westport | 40,000 | BeMax | Shopping center |
| 2 | Old Greenwich | 39,000 | Kings Supermarket | Retail/Office |
| 7 | Danbury | 33,000 | Buffalo Wild Wings | Shopping center |
| 9 | Bethel | 31,000 | Rite Aid/ La Placita Supermarket | Shopping center |
| 3 | Stamford | 27,000 | FedEx | Shopping center |
| 6 | Ridgefield | 23,000 | William Pitt | Retail/Office |
| 2 | Cos Cob | 15,000 | Veterinary Emergency | Retail/Office |
| 2 | Greenwich | 10,000 | Wells Fargo Bank | Shopping center |
|  | Old Greenwich | 8,000 | CVS | Retail |
|  | Stamford | 4,000 | Chase Bank | Bank |
|  |  | 1,755,000 |  |  |
| Litchfield County, CT |  |  |  |  |
| 8 | New Milford | 235,000 | Walmart/Stop & Shop Supermarket | Shopping center |
| 6 | New Milford | 81,000 | Big Y Supermarket | Shopping center |
| 8 | New Milford | 72,000 | Staples | Shopping center |
|  |  | 388,000 |  |  |
| New Haven County, CT |  |  |  |  |
| 12 | Orange | 77,000 | Trader Joe's Supermarket/ TJ Maxx | Shopping center |
| 13 | Derby | 38,000 | Aldi Supermarket | Shopping center |
|  |  | 115,000 |  |  |
| NEW YORK |  |  |  |  |
| Westchester County, NY |  |  |  |  |
| 20 | Scarsdale | 244,000 | ShopRite Supermarket | Shopping center |
| 16 | Ossining | 137,000 | Stop & Shop Supermarket | Shopping center |
| 16 | Somers | 135,000 | Goodwill | Shopping center |
| 16 | Yorktown | 123,000 | Staples | Shopping center |
| 16 | Somers | 80,000 | CVS | Shopping center |
| 26 | Eastchester | 70,000 | DeCicco's Supermarket | Shopping center |
| 27 | Yonkers | 58,000 | Acme Supermarket | Shopping center |
| 20 | Briarcliff Manor | 47,000 | CVS | Shopping center |
|  | Rye | 39,000 | A&S Deli | Street retail (4 buildings) |
|  | Ossining | 29,000 | Westchester Community College | Shopping center |
| 17 | Katonah | 28,000 | Squires Family Clothing and Footwear | Retail/Office |
| 24 | Yonkers | 27,000 | AutoZone | Shopping center |

| MAP | LOCATION | SQUARE FEET | PRINCIPAL TENANT | PROPERTY TYPE |
| --- | --- | --- | --- | --- |
| 23 | Harrison | 26,000 | Harrison Market | Shopping center |
| 24 | Pelham | 25,000 | Manor Market | Shopping center |
| 25 | Eastchester | 24,000 | CVS | Shopping center |
| 25 | Bronxville/ Yonkers | 19,000 | M&T Bank/ JP Morgan Chase | Retail (4 buildings) |
| 16 | Somers | 19,000 | Putnam County Savings Bank | Shopping center |
|  |  | 1,130,000 |  |  |
| Putnam County, NY |  |  |  |  |
| 14 | Carmel | 189,000 | Tops Supermarket | Shopping center |
| 15 | Brewster | 174,000 | Acme Supermarket | Shopping center |
| 14 | Carmel | 145,000 | ShopRite Supermarket | Shopping center |
|  |  | 508,000 |  |  |
| Suffolk County, NY |  |  |  |  |
| 42 | Riverhead | 211,000 | Walmart/Applebee's | Shopping center |
| Rockland County, NY |  |  |  |  |
| 22 | Orangeburg | 74,000 | CVS | Shopping center |
| 21 | New City | 3,000 | Putnam County Savings Bank | Retail (1 building) |
|  |  | 77,000 |  |  |
| Ulster County, NY |  |  |  |  |
|  | Kingston | 3,000 | Marine's Taste of Italy | Net leased property |
| NEW JERSEY |  |  |  |  |
| Bergen County, NJ |  |  |  |  |
| 14 | Midland Park | 130,000 | Kings Supermarket | Shopping center |
| 11 | Emerson | 93,000 | ShopRite Supermarket | Shopping center |
| 13 | Montvale | 76,000 | The Fresh Market Supermarket | Shopping center |
| 20 | Dumont | 74,000 | Stop & Shop Supermarket | Shopping center |
| 14 | Wyckoff | 43,000 | Walgreens | Shopping center |
| 12 | Waldwick | 27,000 | United States Post Office | Shopping center |
| 12 | Waldwick | 20,000 | Rite Aid | Retail-Single tenant |
| 28 | Fort Lee | 7,000 | H-Mart Supermarket | Retail supermarket- Single tenant |
|  |  | 470,000 |  |  |
| Passaic County, NJ |  |  |  |  |
| 38 | Wayne | 103,000 | Whole Foods Market | Shopping center |
| 36 | Pompton Lakes | 94,000 | Planet Fitness | Shopping center |
| 30 | Passaic | 37,000 | Dollar Tree/Family Dollar | Shopping center |
|  |  | 234,000 |  |  |
| Essex County, NJ |  |  |  |  |
| 40 | Newark | 108,000 | Seabra Supermarket | Shopping center |
| 39 | Bloomfield | 59,000 | Walgreens/Food World Supermarket | Shopping center |
|  |  | 167,000 |  |  |
| Morris County, NJ |  |  |  |  |
| 35 | Kinnelon | 77,000 | Marshalls | Shopping center |
| 37 | Boonton | 63,000 | Acme Supermarket | Shopping center |
|  |  | 140,000 |  |  |
| Union County, NJ |  |  |  |  |
| 41 | New Providence | 109,000 | Acme Supermarket | Shopping center |

12

URSTADT BIDDLE PROPERTIES INC.

# FINANCIALS

## CONTENTS

| Consolidated Balance Sheets at October 31, 2022 and 2021 | 14 |
| --- | --- |
| Consolidated Statements of Income for each of the three years in the period ended October 31, 2022 | 15 |
| Consolidated Statements of Comprehensive Income for each of the three years in the period ended October 31, 2022 | 16 |
| Consolidated Statements of Cash Flows for each of the three years in the period ended October 31, 2022 | 17 |
| Consolidated Statements of Stockholders' Equity for each of the three years in the period ended October 31, 2022 | 18 |
| Notes to Consolidated Financial Statements | 20 |
| Report of Independent Registered Public Accounting Firm | 40 |
| Management's Discussion and Analysis of Financial Condition and Results of Operations | 42 |
| Management's Report on Internal Control over Financial Reporting | 62 |
| Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting | 63 |
| Quantitative and Qualitative Disclosures about Market Risk | 64 |
| Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 65 |
| Performance Graph | 65 |
| Non-GAAP Financial Measures Reconciliations | 66 |

13

# FINANCIAL STATEMENTS

## CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

|  | October 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| ASSETS |  |  |
| Real Estate Investments: | $1,190,356 | $1,148,382 |
| Real Estate-at cost | (303,488) | (278,605) |
| Less: Accumulated depreciation | 886,868 | 869,777 |
| Investments in and advances to unconsolidated joint ventures | 29,586 | 29,027 |
|  | 916,454 | 898,804 |
| Cash and cash equivalents | 14,966 | 24,057 |
| Tenant receivables | 22,889 | 23,806 |
| Prepaid expenses and other assets | 34,559 | 19,175 |
| Deferred charges, net of accumulated amortization | 8,458 | 8,010 |
| Total Assets | $997,326 | $973,852 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |
| Liabilities: |  |  |
| Revolving credit lines | $30,500 | $ - |
| Mortgage notes payable and other loans | 302,316 | 296,449 |
| Accounts payable and accrued expenses | 5,399 | 11,443 |
| Deferred compensation-officers | 54 | 62 |
| Other liabilities | 23,205 | 22,599 |
| Total Liabilities | 361,474 | 330,553 |
| Redeemable Noncontrolling Interests | 61,550 | 67,395 |
| Commitments and Contingencies |  |  |
| Stockholders' Equity: |  |  |
| 6.25% Series H Cumulative Preferred Stock (liquidation preference of $25 per share); 4,600,000 shares issued and outstanding | 115,000 | 115,000 |
| 5.875% Series K Cumulative Preferred Stock (liquidation preference of $25 per share); 4,400,000 shares issued and outstanding | 110,000 | 110,000 |
| Excess Stock, par value $0.01 per share; 20,000,000 shares authorized; none issued and outstanding | - | - |
| Common Stock, par value $0.01 per share; 30,000,000 shares authorized; 10,247,072 and 10,153,689 shares issued and outstanding | 104 | 103 |
| Class A Common Stock, par value $0.01 per share; 100,000,000 shares authorized; 28,963,433 and 30,073,807 shares issued and outstanding | 290 | 301 |
| Additional paid in capital | 511,471 | 528,713 |
| Cumulative distributions in excess of net income | (179,754) | (170,493) |
| Accumulated other comprehensive income (loss) | 17,191 | (7,720) |
| Total Stockholders' Equity | 574,302 | 575,904 |
| Total Liabilities and Stockholders' Equity | $997,326 | $973,852 |

*The accompanying notes to consolidated financial statements are an integral part of these statements.*

14

URSTADT BIDDLE PROPERTIES INC.

# CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

|  | Year Ended October 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Revenues |  |  |  |
| Lease income | $137,660 | $130,364 | $120,941 |
| Lease termination | 721 | 967 | 705 |
| Other | 4,722 | 4,250 | 5,099 |
| Total Revenues | 143,103 | 135,581 | 126,745 |
| Expenses |  |  |  |
| Property operating | 25,124 | 22,938 | 19,542 |
| Property taxes | 23,700 | 23,674 | 23,464 |
| Depreciation and amortization | 29,799 | 29,032 | 29,187 |
| General and administrative | 9,934 | 8,985 | 10,643 |
| Directors' fees and expenses | 500 | 355 | 373 |
| Total Operating Expenses | 89,057 | 84,984 | 83,209 |
| Operating Income | 54,046 | 50,597 | 43,536 |
| Non-Operating Income (Expense): |  |  |  |
| Interest expense | (13,175) | (13,087) | (13,508) |
| Equity in net income from unconsolidated joint ventures | 1,397 | 1,323 | 1,433 |
| Gain on sale of marketable securities | - | - | 258 |
| Interest, dividends and other investment income | 239 | 231 | 398 |
| Gain (loss) on sale of properties | 767 | 11,864 | (6,047) |
| Net Income | 43,274 | 50,928 | 26,070 |
| Noncontrolling interests: |  |  |  |
| Net income attributable to noncontrolling interests | (3,570) | (3,645) | (3,887) |
| Net income attributable to Urstadt Biddle Properties Inc. | 39,704 | 47,283 | 22,183 |
| Preferred stock dividends | (13,650) | (13,650) | (13,650) |
| Net Income Applicable to Common and Class A Common Stockholders | $26,054 | $33,633 | $8,533 |
| Basic Earnings Per Share: |  |  |  |
| Per Common Share | $0.62 | $0.80 | $0.20 |
| Per Class A Common Share | $0.69 | $0.89 | $0.23 |
| Diluted Earnings Per Share: |  |  |  |
| Per Common Share | $0.61 | $0.79 | $0.20 |
| Per Class A Common Share | $0.68 | $0.88 | $0.22 |

*The accompanying notes to consolidated financial statements are an integral part of these statements.*

15

# FINANCIAL STATEMENTS

## CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

|  | Year Ended October 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Net Income | $43,274 | $50,928 | $26,070 |
| Other comprehensive income: |  |  |  |
| Change in unrealized gain (loss) on interest rate swaps | 22,077 | 7,080 | (6,546) |
| Change in unrealized gain (loss) on interest rate swaps-equity investees | 2,834 | 906 | (710) |
| Total comprehensive income | 68,185 | 58,914 | 18,814 |
| Comprehensive income attributable to noncontrolling interests | (3,570) | (3,645) | (3,887) |
| Total comprehensive income attributable to Urstadt Biddle Properties Inc. | 64,615 | 55,269 | 14,927 |
| Preferred stock dividends | (13,650) | (13,650) | (13,650) |
| Total comprehensive income applicable to Common and Class A Stockholders | $50,965 | $41,619 | $1,277 |

*The accompanying notes to consolidated financial statements are an integral part of these statements.*

16

URSTADT BIDDLE PROPERTIES INC.

# CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

|  | Year Ended October 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Cash Flows from Operating Activities: |  |  |  |
| Net income | $43,274 | $50,928 | $26,070 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| Depreciation and amortization | 29,799 | 29,032 | 29,187 |
| Straight-line rent adjustment | (241) | 2,396 | (2,641) |
| Provisions for tenant credit losses | 23 | 3,540 | 6,244 |
| (Gain) on sale of marketable securities | - | - | (258) |
| Restricted stock compensation expense and other adjustments | 3,677 | 3,909 | 5,448 |
| Deferred compensation arrangement | (7) | 41 | (33) |
| (Gain) loss on sale of properties | (767) | (11,864) | 6,047 |
| Equity in net (income) of unconsolidated joint ventures | (1,397) | (1,323) | (1,433) |
| Distributions of operating income from unconsolidated joint ventures | 1,397 | 1,323 | 1,433 |
| Changes in operating assets and liabilities: |  |  |  |
| Tenant receivables | 1,135 | (3,796) | (6,715) |
| Accounts payable and accrued expenses | 691 | 1,006 | 609 |
| Other assets and other liabilities, net | 167 | (1,523) | (2,075) |
| Net Cash Flow Provided by Operating Activities | 77,751 | 73,669 | 61,883 |
| Cash Flows from Investing Activities: |  |  |  |
| Acquisitions of real estate investments | (35,671) | - | - |
| Deposits on acquisition of real estate investments | - | (10) | (1,030) |
| Return of deposits on real estate investments | - | 500 | 530 |
| Improvements to properties and deferred charges | (15,572) | (15,463) | (22,336) |
| Net proceeds from sale of properties | 4,399 | 16,707 | 3,732 |
| Purchases of securities available for sale | - | (955) | (6,983) |
| Proceeds from the sale of available for sale securities | - | - | 7,240 |
| Investment in note receivable | 409 | (1,738) | - |
| Return of capital from unconsolidated joint ventures | 2,203 | 514 | 27 |
| Net Cash Flow (Used in) Investing Activities | (44,232) | (445) | (18,820) |
| Cash Flows from Financing Activities: |  |  |  |
| Dividends paid-Common and Class A Common Stock | (37,263) | (29,025) | (30,018) |
| Dividends paid-Preferred Stock | (13,650) | (13,650) | (14,188) |
| Amortization payments on mortgage notes payable | (7,389) | (6,888) | (7,089) |
| Proceeds from mortgage note payable and other loans | 46,000 | 39,238 | - |
| Repayment of mortgage notes payable and other loans | (32,412) | (34,645) | - |
| Proceeds from revolving credit line borrowings | 40,500 | - | 35,000 |
| Sales of additional shares of Common and Class A Common Stock | 197 | 148 | 149 |
| Repayments on revolving credit line borrowings | (10,000) | (35,000) | - |
| Acquisitions of noncontrolling interests | (3,897) | (5,126) | (758) |
| Distributions to noncontrolling interests | (3,570) | (3,645) | (3,887) |
| Repurchase of shares of Class A Common Stock | (20,536) | (1,049) | - |
| Payment of taxes on shares withheld for employee taxes | (590) | (320) | (573) |
| Net proceeds from issuance of Preferred Stock | - | - | 17 |
| Redemption of preferred stock | - | - | (75,000) |
| Net Cash Flow (Used in) Financing Activities | (42,610) | (89,962) | (96,347) |
| Net Increase/(Decrease) In Cash and Cash Equivalents | (9,091) | (16,738) | (53,284) |
| Cash and Cash Equivalents at Beginning of Year | 24,057 | 40,795 | 94,079 |
| Cash and Cash Equivalents at End of Year | $14,966 | $24,057 | $40,795 |

The accompanying notes to consolidated financial statements are an integral part of these statements.

17

# FINANCIAL STATEMENTS

## CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

|  | 6.25% Series H Preferred Stock |  | 5.875% Series K Preferred Stock |  |
| --- | --- | --- | --- | --- |
|  | Issued | Amount | Issued | Amount |
| Balances-October 31, 2019 | 4,600,000 | $115,000 | 4,400,000 | $110,000 |
| Net income applicable to Common and Class A common stockholders | - | - | - | - |
| Change in unrealized (loss) on interest rate swap | - | - | - | - |
| Cash dividends paid: |  |  |  |  |
| Common stock ($0.6875 per share) | - | - | - | - |
| Class A common stock ($0.77 per share) | - | - | - | - |
| Issuance of shares under dividend reinvestment plan | - | - | - | - |
| Shares issued under restricted stock plan | - | - | - | - |
| Shares withheld for employee taxes | - | - | - | - |
| Forfeiture of restricted stock | - | - | - | - |
| Restricted stock compensation and other adjustment | - | - | - | - |
| Adjustments to redeemable noncontrolling interests | - | - | - | - |
| Balances-October 31, 2020 | 4,600,000 | 115,000 | 4,400,000 | 110,000 |
| Net income applicable to Common and Class A common stockholders | - | - | - | - |
| Change in unrealized gain (loss) on interest rate swap | - | - | - | - |
| Cash dividends paid: |  |  |  |  |
| Common stock ($0.664 per share) | - | - | - | - |
| Class A common stock ($0.74 per share) | - | - | - | - |
| Issuance of shares under dividend reinvestment plan | - | - | - | - |
| Shares issued under restricted stock plan | - | - | - | - |
| Shares withheld for employee taxes | - | - | - | - |
| Forfeiture of restricted stock | - | - | - | - |
| Repurchase of Common and Class A Common stock | - | - | - | - |
| Restricted stock compensation and other adjustment | - | - | - | - |
| Adjustments to redeemable noncontrolling interests | - | - | - | - |
| Balances-October 31, 2021 | 4,600,000 | 115,000 | 4,400,000 | 110,000 |
| Net income applicable to Common and Class A common stockholders | - | - | - | - |
| Change in unrealized gains on interest rate swap | - | - | - | - |
| Cash dividends paid: |  |  |  |  |
| Common stock ($0.858 per share) | - | - | - | - |
| Class A common stock ($0.95 per share) | - | - | - | - |
| Issuance of shares under dividend reinvestment plan | - | - | - | - |
| Shares issued under restricted stock plan | - | - | - | - |
| Shares withheld for employee taxes | - | - | - | - |
| Forfeiture of restricted stock | - | - | - | - |
| Repurchase of Common and Class A Common stock | - | - | - | - |
| Restricted stock compensation and other adjustments | - | - | - | - |
| Adjustments to redeemable noncontrolling interests | - | - | - | - |
| Balances-October 31, 2022 | 4,600,000 | $115,000 | 4,400,000 | $110,000 |

*The accompanying notes to consolidated financial statements are an integral part of these statements.*

18

# URSTADT BIDDLE PROPERTIES INC.

| Common Stock |  | Class A Common Stock |  | Additional Paid In Capital | Cumulative Distributions In Excess of Net Income | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Issued | Amount | Issued | Amount |  |  |  |  |
| 9,963,751 | $101 | 29,893,241 | $299 | $520,988 | $(158,213) | $(8,451) | $579,724 |
| - | - | - | - | - | 8,533 | - | 8,533 |
| - | - | - | - | - | - | (7,256) | (7,256) |
| - | - | - | - | - | (6,923) | - | (6,923) |
| - | - | - | - | - | (23,095) | - | (23,095) |
| 4,451 | - | 6,837 | - | 149 | - | - | 149 |
| 105,450 | 1 | 120,800 | 1 | (2) | - | - | - |
| - | - | (23,873) | - | (573) | - | - | (573) |
| - | - | (700) | - | - | - | - | - |
| - | - | - | - | 5,465 | - | - | 5,465 |
| - | - | - | - | - | 15,047 | - | 15,047 |
| 10,073,652 | 102 | 29,996,305 | 300 | 526,027 | (164,651) | (15,707) | 571,071 |
| - | - | - | - | - | 33,633 | - | 33,633 |
| - | - | - | - | - | - | 7,987 | 7,987 |
| - | - | - | - | - | (6,756) | - | (6,756) |
| - | - | - | - | - | (22,269) | - | (22,269) |
| 3,341 | - | 5,355 | - | 148 | - | - | 148 |
| 105,850 | 1 | 125,800 | 1 | (2) | - | - | - |
| - | - | (23,249) | - | (319) | - | - | (319) |
| - | - | (1,250) | - | - | - | - | - |
| (29,154) | - | (29,154) | - | (1,049) | - | - | (1,049) |
| - | - | - | - | 3,908 | - | - | 3,908 |
| - | - | - | - | - | (10,450) | - | (10,450) |
| 10,153,689 | 103 | 30,073,807 | 301 | 528,713 | (170,493) | (7,720) | 575,904 |
| - | - | - | - | - | 26,054 | - | 26,054 |
| - | - | - | - | - | - | 24,911 | 24,911 |
| - | - | - | - | - | (8,805) | - | (8,805) |
| - | - | - | - | - | (28,458) | - | (28,458) |
| 3,600 | - | 7,538 | - | 197 | - | - | 197 |
| 109,500 | 1 | 149,000 | 1 | (2) | - | - | - |
| - | - | (27,680) | - | (590) | - | - | (590) |
| - | - | (36,300) | - | - | - | - | - |
| (19,717) | - | (1,202,932) | (12) | (20,524) | - | - | (20,536) |
| - | - | - | - | 3,677 | - | - | 3,677 |
| - | - | - | - | - | 1,948 | - | 1,948 |
| 10,247,072 | $104 | 28,963,433 | $290 | $511,471 | $(179,754) | $17,191 | $574,302 |

19

# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

## (1) ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

### Business

Urstadt Biddle Properties Inc. (“Company”), a Maryland Corporation, is a real estate investment trust (REIT), engaged in the acquisition, ownership and management of commercial real estate, primarily neighborhood and community shopping centers in the northeastern part of the United States with a concentration in the metropolitan New York tri-state area outside of the City of New York. The Company’s major tenants include supermarket chains and other retailers who sell basic necessities. At October 31, 2022, the Company owned or had equity interests in 77 properties containing a total of 5.3 million square feet of gross leasable area (“GLA”).

### COVID-19 Pandemic

On March 11, 2020, the novel coronavirus disease (“COVID-19”) was declared a pandemic (“COVID-19 pandemic”) by the World Health Organization as the disease spread throughout the world. During March 2020, measures to prevent the spread of COVID-19 were initiated, with federal, state and local government agencies issuing regulatory orders enforcing social distancing and limiting certain business operations and group gatherings in order to further prevent the spread of COVID-19. While these regulatory orders vary by state and have changed over time, as of October 31, 2022 most of our tenants’ businesses are operating normally. We have seen foot traffic, retail activity and general business conditions for most of our tenants essentially return to pre-pandemic levels. The pandemic is still ongoing, however, with existing and new variants making the situation difficult to predict.

### Principles of Consolidation and Use of Estimates

The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and joint ventures in which the Company meets certain criteria of a sole general partner in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation.” The Company has determined that such joint ventures should be consolidated into the consolidated financial statements of the Company. In accordance with ASC Topic 970-323, “Real Estate-General-Equity Method and Joint Ventures,” joint ventures that the Company does not control but otherwise exercises significant influence in, are accounted

for under the equity method of accounting. See Note 6 for further discussion of the unconsolidated joint ventures. All significant intercompany transactions and balances have been eliminated in consolidation.

The accompanying financial statements are prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the disclosure of contingent assets and liabilities, the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the periods covered by the financial statements. The most significant assumptions and estimates relate to the valuation of real estate, depreciable lives, revenue recognition, fair value measurements and the collectability of tenant receivables. Actual results could differ from these estimates.

### Federal Income Taxes

The Company has elected to be treated as a real estate investment trust under Sections 856-860 of the Internal Revenue Code (“Code”). Under those sections, a REIT that, among other things, distributes at least 90% of real estate trust taxable income and meets certain other qualifications prescribed by the Code will not be taxed on that portion of its taxable income that is distributed. The Company believes it qualifies as a REIT and intends to distribute all of its taxable income for fiscal 2022 in accordance with the provisions of the Code. Accordingly, no provision has been made for Federal income taxes in the accompanying consolidated financial statements.

The Company follows the provisions of ASC Topic 740, “Income Taxes,” that, among other things, defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Based on its evaluation, the Company determined that it has no uncertain tax positions and no unrecognized tax benefits as of October 31, 2022. As of October 31, 2022, the fiscal tax years 2018 through and including 2021 remain open to examination by the Internal Revenue Service. There are currently no federal tax examinations in progress.

20

URSTADT BIDDLE PROPERTIES INC.

# Acquisitions of Real Estate Investments and Capitalization Policy

# Acquisition of Real Estate Investments:

The Company evaluates each acquisition of real estate or in-substance real estate (including equity interests in entities that predominantly hold real estate assets) to determine if the integrated set of assets and activities acquired meet the definition of a business and need to be accounted as a business combination. If either of the following criteria is met, the integrated set of assets and activities acquired would not qualify as a business:

- Substantially all of the fair value of the gross assets acquired is concentrated in either a single identifiable asset or a group of similar identifiable assets; or
- The integrated set of assets and activities is lacking, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs (i.e. revenue generated before and after the transaction).

An acquired process is considered substantive if:

- The process includes an organized workforce (or includes an acquired contract that provides access to an organized workforce), that is skilled, knowledgeable, and experienced in performing the process;
- The process cannot be replaced without significant cost, effort, or delay; or
- The process is considered unique or scarce.

Generally, the Company expects that acquisitions of real estate or in-substance real estate will not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related intangible assets) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay.

Acquisitions of real estate and in-substance real estate which do not meet the definition of a business are accounted for as asset acquisitions. The accounting model for asset acquisitions is similar to the accounting model for business combinations except that the acquisition consideration (including acquisition costs) is allocated to the individual assets acquired and liabilities assumed on a relative fair value basis. As a result, asset acquisitions do not result in the recognition of goodwill or a bargain

purchase gain. The relative fair values used to allocate the cost of an asset acquisition are determined using the same methodologies and assumptions as the Company utilizes to determine fair value in a business combination.

The value of tangible assets acquired is based upon our estimation of value on an “as if vacant” basis. The value of acquired in-place leases includes the estimated costs during the hypothetical lease-up period and other costs that would have been incurred in the execution of similar leases under the market conditions at the acquisition date of the acquired in-place lease. We assess the fair value of tangible and intangible assets based on numerous factors, including estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors, including the historical operating results, known trends, and market/economic conditions that may affect the property.

The values of acquired above and below-market leases, which are included in prepaid expenses and other assets and other liabilities, respectively, are amortized over the terms of the related leases and recognized as either an increase (for below-market leases) or a decrease (for above-market leases) to rental revenue. The values of acquired in-place leases are classified in other assets in the accompanying consolidated balance sheets and amortized over the remaining terms of the related leases.

# Capitalization Policy:

Land, buildings, property improvements, furniture/fixtures and tenant improvements are recorded at cost. Expenditures for maintenance and repairs are charged to operations as incurred. Renovations and/or replacements, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.

# Depreciation and Amortization

The Company uses the straight-line method for depreciation and amortization. Real estate investment properties are depreciated over the estimated useful lives of the properties, which range from 30 to 40 years. Property improvements are depreciated over the estimated useful lives that range from 10 to 20 years. Furniture and fixtures are depreciated over the estimated useful lives that range from 3 to 10 years. Tenant improvements are amortized over the shorter of the life of the related leases or their useful life.

21

# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

## Sale of Investment Property and Property Held for Sale

The Company reports properties that are either disposed of or are classified as held for sale in continuing operations in the consolidated statement of income if the removal, or anticipated removal, of the asset(s) from the reporting entity does not represent a strategic shift that has or will have a major effect on an entity's operations and financial results when disposed of.

In March 2022, the Company sold its free-standing restaurant property located in Unionville, CT (the 'Unionville Property') to an unrelated third party for a sale price of $950,000, as that property no longer met the Company's investment objectives. In accordance with ASC Topic 606, 'Contracts with Customers,' and ASC Topic 610-20 'Gains and Losses from the Derecognition of Nonfinancial Assets,' the Company recorded a gain on sale in the amount of $204,000, which gain is included in continuing operations in its consolidated income statements for the year ended October 31, 2022, when the Company's performance obligation was met, the transfer of the property's title to the buyer and when consideration was received from the buyer for that performance obligation.

In February 2022, the Company sold its free-standing restaurant property located in Bloomfield, NJ (the 'Bloomfield Property') to an unrelated third party for a sale price of $1.8 million, as that property no longer met the Company's investment objectives. In accordance with ASC Topic 606, 'Contracts with Customers,' and ASC Topic 610-20 'Gains and Losses from the Derecognition of Nonfinancial Assets,' the Company recorded a gain on sale in the amount of $544,000, which gain is included in continuing operations in its consolidated income statements for the year ended October 31, 2022, when the Company's performance obligation was met, the transfer of the property's title to the buyer and when consideration was received from the buyer for that performance obligation.

In September 2021, the Company entered into a purchase and sale agreement to sell its property located in Chester, NJ (the 'Chester Property'), to an unrelated third party for a sale price of $1.96 million as that property no longer met its investment objectives. In accordance with ASC Topic 360-10-45, the property met all the criteria to be classified as held for sale in the fourth quarter of fiscal 2021, and accordingly the Company

recorded a loss on property held for sale of $342,000, which loss was included in continuing operations in the consolidated statement of income for the year ended October 31, 2021. The amount of the loss represented the net carrying amount of the property over the fair value of the asset less estimated cost to sell. The net book value of the Chester Property was insignificant to financial statement presentation and as a result the Company did not include the asset as held for sale on its consolidated balance sheet at October 31, 2021. In December 2021, the Chester Property sale was completed and the Company realized an additional loss on sale of property of $7,000, which loss will be included in continuing operations in the consolidated statement of income for the year ended October 31, 2022.

In June 2021, the Company sold its property located in Newington, NH (the 'Newington Property') to an unrelated third party for a sale price of $13.4 million as that property no longer met the Company's investment objectives. In accordance with ASC Topic 606, 'Contracts with Customers,' and ASC Topic 610-20 'Gains and Losses from the Derecognition of Nonfinancial Assets,' the Company recorded a gain on sale in the amount of $11.8 million, which gain is included in continuing operations in its consolidated income statements for the year ended October 31, 2021, when the Company's performance obligation was met, the transfer of the property's title to the buyer and when consideration was received from the buyer for that performance obligation.

In March 2021, the Company sold its property located in Hillsdale, NJ (the 'Hillsdale Property') to an unrelated third party for a sale price of $1.3 million, as that property no longer met the Company's investment objectives. In accordance with ASC Topic 606, 'Contracts with Customers,' and ASC Topic 610-20 'Gains and Losses from the Derecognition of Nonfinancial Assets,' the Company recorded a gain on sale in the amount of $435,000, which gain is included in continuing operations in its consolidated income statements for the year ended October 31, 2021, when the Company's performance obligation was met, the transfer of the property's title to the buyer and when consideration was received from the buyer for that performance obligation.

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URSTADT BIDDLE PROPERTIES INC.

In January 2020, the Company entered into a purchase and sale agreement, subject to certain conditions, to sell a 29,000 square foot portion of its property located in Pompton Lakes, NJ (the “Pompton Lakes Property”) to an unrelated third party for a sale price of $2.8 million. In accordance with ASC Topic 360-10-45, that portion of the property met all the criteria to be classified as held for sale in September of fiscal 2020, and accordingly the Company recorded a loss on property held for sale of $5.7 million, which loss was included in continuing operations in the consolidated statement of income for the year ended October 31, 2020. The amount of the loss represented the net carrying amount of that portion of the property over the fair value of that portion of the asset less estimated cost to sell. In December 2020, the sale of that portion of the property was completed.

In January 2020, the Company sold for $1.3 million its retail property located in Carmel, NY (the “Carmel Property”), as that property no longer met the Company’s investment objectives. In conjunction with the sale, the Company realized a loss on sale of the Carmel property in the amount of $242,000, which loss is included in continuing operations in the consolidated statement of income for the year ended October 31, 2020.

The combined operating results of the Unionville Property, the Bloomfield Property, the Chester Property, the Newington Property, the Hillsdale Property, the Carmel Property and the sold portion of the Pompton Lakes property, which are included in continuing operations, were as follows (amounts in thousands):

|  | Year Ended October 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Revenues | $54 | $1,125 | $2,024 |
| Property operating expense | (26) | (456) | (573) |
| Depreciation and amortization | (14) | (132) | (528) |
| Net Income | $14 | $537 | $923 |

### Deferred Charges

Deferred charges consist principally of leasing commissions (which are amortized ratably over the life of the tenant leases). Deferred charges in the accompanying consolidated balance sheets are shown at cost, net of accumulated amortization of $5,316,000 and $4,994,000 as of October 31, 2022 and 2021, respectively.

### Asset Impairment

On a periodic basis, management assesses whether there are any indicators that the value of its real estate investments may be impaired. A property value is considered impaired when management’s estimate of current and projected operating cash flows (undiscounted and without interest) of the property over its remaining useful life is less than the net carrying value of the property. Such cash flow projections consider factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors. To the extent impairment has occurred, the loss is measured as the excess of the net carrying amount of the property over the fair value of the asset. Changes in estimated future cash flows due to changes in the Company’s plans or market and economic conditions could result in recognition of impairment losses which could be substantial. As of October 31, 2022, management does not believe that the value of any of its real estate investments is impaired.

### Lease Income, Revenue Recognition and Tenant Receivables

#### Lease Income:

The Company accounts for lease income in accordance with ASC Topic 842, “Leases.”

The Company’s existing leases are generally classified as operating leases. However, certain longer-term leases (both lessee and lessor leases) may be classified as direct financing or sales type leases, which may result in selling profit and an accelerated pattern of earnings recognition.

The Company leases space to tenants under agreements with varying terms that generally provide for fixed payments of base rent, with designated increases over the term of the lease. Some of the lease agreements contain provisions that provide for additional rents based on tenants’ sales volume (“percentage rent”). Percentage rents are recognized when the tenants achieve the specified targets as defined in their lease agreements. Additionally, most all lease agreements contain provisions for reimbursement of the tenants’ share of actual real estate taxes, insurance and Common Area Maintenance (“CAM”) costs (collectively, “Recoverable Costs”) incurred.

Lease terms generally range from 1 to 5 years for tenant spaces under 10,000 square feet (“Shop Space”) and in excess of 5 years for spaces greater than 10,000 square feet (“Anchor Spaces”). Many leases also provide the option for the tenants to extend their lease beyond the initial term of the lease. If the tenants do not exercise renewal options

23

# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

and the leases mature, the tenants must relinquish their space so it can be leased to a new tenant, which generally involves some level of cost to prepare the space for re-leasing. These costs are capitalized and depreciated over the shorter of the life of the subsequent lease or the life of the improvement.

CAM is a non-lease component of the lease contract under ASC Topic 842, and therefore would be accounted for under ASC Topic 606, 'Revenue from Contracts with Customers,' and presented separate from lease income in the accompanying consolidated statements of income, based on an allocation of the overall contract price, which is not necessarily the amount that would be billable to the tenants for CAM reimbursements per the terms of the lease contract. As the timing and pattern of providing the CAM service to the tenant is the same as the timing and pattern of the tenants' use of the underlying lease asset, the Company, in accordance with ASC Topic 842, combines CAM with the remaining lease components, along with tenants' reimbursement of real estate taxes and insurance, and recognize them together as lease income in the accompanying consolidated statements of income.

Lease income for operating leases with fixed payment terms is recognized on a straight-line basis over the expected term of the lease for all leases for which collectability is considered probable at the commencement date. At lease commencement, the Company expects that collectability is probable for all of its leases due to the Company's credit checks on tenants and other creditworthiness analysis undertaken before entering into a new lease; therefore, income from all operating leases is initially recognized on a straight-line basis. Lease income each period is reduced by amounts considered uncollectable on a lease-by-lease basis, with any changes in collectability assessments recognized as a current period adjustment to lease income. For operating leases in which collectability of lease income is not considered probable, lease income is recognized on a cash basis and all previously recognized uncollected lease income, including straight-line rental income, is reversed in the period in which the lease income is determined not to be probable of collection.

The Company, as a lessor, may only defer as initial direct costs the incremental costs of a tenant operating lease that would not have been incurred if the lease had not been obtained. These costs generally include third-party broker payments, which are capitalized to deferred costs in the accompanying consolidated balance sheets and amortized over the expected term of the lease to depreciation and amortization expense in the accompanying consolidated statements of income.

## *COVID-19 Pandemic*

From the onset of COVID-19 through October 31, 2022, the Company has completed 290 lease modifications, consisting of base rent deferrals totaling $4.0 million and rent abatements totaling $4.7 million. Through October 31, 2022, the Company has received repayment of approximately $3.7 million of the base rent deferrals.

In April 2020, in response to the COVID-19 pandemic, the FASB staff issued guidance that it would be acceptable for entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how those concessions would be accounted for under Topic 842, as if enforceable rights and obligations for those concessions existed (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the lease contract). Consequently, for concessions related to the effects of the COVID-19 pandemic, an entity will not have to analyze each lease contract to determine whether enforceable rights and obligations for concessions exist in the lease contract and may elect to apply or not apply the lease modification guidance in Topic 842 to those contracts.

This election is available for concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. For example, this election is available for concessions that result in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. The FASB staff expects that reasonable judgment will be exercised in making those determinations.

Most concessions will provide a deferral of payments with no substantive changes to the consideration in the original lease contract. A deferral affects the timing, but the amount of the consideration is substantially the same as that required by the original lease contract. The FASB staff expects that there will be multiple ways to account for those deferrals, none of which the staff believes are preferable over others. The Company has made the election not to analyze each lease contract, and believes that, based on FASB guidance, the appropriate way to account for the concessions as described above is to account for such concessions as if no changes to the lease contracts were made. Under that accounting, a lessor would increase its lease receivable (straight-line rents receivable) and would continue to recognize income during the deferral period, assuming that the collectability of the future rents under the lease contract are considered collectable. If it is determined that the future rents of any lease contract are not collectable, the Company would treat that lease contract on a cash basis as defined in ASC Topic 842.

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URSTADT BIDDLE PROPERTIES INC.

When collection of substantially all lease payments during the lease term is not considered probable, total lease revenue is limited to the lesser of revenue recognized under accrual accounting or cash received. Determining the probability of collection of substantially all lease payments during a lease term requires significant judgment. This determination is impacted by numerous factors, including our assessment of the tenant’s credit worthiness, economic conditions, tenant sales productivity in that location, historical experience with the tenant and tenants operating in the same industry, future prospects for the tenant and the industry in which it operates, and the length of the lease term. If leases currently classified as probable are subsequently reclassified as not probable, any outstanding lease receivables (including straight-line rent receivables) would be written-off with a corresponding decrease in lease income.

#### **Revenue Recognition**

In those instances in which the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition on operating leases will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. When the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin.

Lease termination amounts are recognized in operating revenues when there is a signed termination agreement, all of the conditions of the agreement have been met, the tenant is no longer occupying the property and the termination consideration is probable of collection. Lease termination amounts are paid by tenants who want to terminate their lease obligations before the end of the contractual term of the lease by agreement with the Company. There is no way of predicting or forecasting the timing or amounts of future lease termination fees. Interest income is recognized as it is earned. Gains or losses on disposition of properties are recorded when the criteria for recognizing such gains or losses under U.S. GAAP have been met.

Percentage rent is recognized when a specific tenant’s sales breakpoint is achieved.

#### **Tenant Receivables**

During the early days of the pandemic, the actions taken by federal, state and local governments to mitigate the spread of COVID-19, initially by ordering closures of non-essential businesses and ordering residents to generally stay at home, and subsequent phased re-openings resulted in many of our tenants temporarily or even permanently closing their businesses, and for some, it has impacted their ability to pay rent.

As a result, in accordance with ASC Topic 842, we revised our collectability assumptions for many of our tenants that were most significantly impacted by COVID-19. This amount includes changes in our collectability assessments for certain tenants in our portfolio from probable to not probable, which requires that revenue recognition for those tenants be converted to cash-basis accounting, with previously uncollected billed rents reversed in the current period. From the beginning of the COVID-19 pandemic through the end of our second quarter of fiscal 2021, we converted 89 tenants to cash-basis accounting in accordance with ASC Topic 842.

We did not convert any additional tenants to cash-basis accounting in the second half of fiscal 2021 or the fiscal year ended October 31, 2022. As of October 31, 2022, 34 of the 89 tenants that were previously converted to cash-basis are no longer tenants in the Company’s properties. In addition, when one of the Company’s tenants is converted to cash-basis accounting in accordance with ASC Topic 842, all previously recorded straight-line rent receivables need to be reversed in the period that the tenant is converted to cash-basis revenue recognition. In the fiscal year ended October 31, 2021, the Company reversed straight-line rent revenue in the amount of $1.3 million related to tenants converted to cash-basis revenue recognition. The Company did not reverse any straight-line rent revenue in the fiscal year ended October 31, 2022, as no tenants were converted to cash-basis revenue recognition in that period.

During the fiscal years ended October 31, 2022 and 2021, we restored 10 and 13 of the original 89 tenants, respectively, to accrual-basis revenue recognition as those tenants paid all of their billed rents for six consecutive months and have no significant unpaid billings at the time of restoration to accrual basis accounting. When a tenant is restored to accrual-basis revenue recognition, the Company records revenue on the straight-line basis. As such, the Company restored straight-line rent revenue in the fiscal years ended October 31, 2022 and 2021 in the amounts of $57,000 and $582,000, respectively, for these tenants.

25

# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of October 31, 2022, the Company is recording lease income on a cash basis for approximately 3.7% of our tenants in accordance with ASC Topic 842.

During the fiscal year ended October 31, 2021, we recognized collectability adjustments totaling $4.2 million. The Company did not have any significant collectability adjustments in the fiscal year ended October 31, 2022.

At October 31, 2022 and October 31, 2021, $19,895,000 and $19,670,000, respectively, have been recognized as straight-line rents receivable (representing the current cumulative rents recognized prior to when billed and collectible as provided by the terms of the leases), all of which is included in tenant receivables in the accompanying consolidated financial statements.

The Company provides an allowance for doubtful accounts against the portion of tenant receivables that is estimated to be uncollectable. Such allowances are reviewed periodically. At October 31, 2022 and October 31, 2021, tenant receivables in the accompanying consolidated balance sheets are shown net of allowances for doubtful accounts of $6,213,600 and $7,469,000, respectively. Included in the aforementioned allowance for doubtful accounts is an amount for future tenant credit losses of approximately 10% of the deferred straight-line rents receivable which is estimated to be uncollectable.

## Cash Equivalents

Cash and cash equivalents consist of cash in banks and short-term investments with original maturities of less than three months.

## Marketable Securities

Marketable equity securities are carried at fair value based upon quoted market prices in active markets.

In March 2020, the Company purchased REIT securities in the amount of $7.0 million. In May 2020, the Company sold all of its REIT securities for $7.3 million and realized a gain on sale of $258,000, which is included in the consolidated statement of income for the year ended October 31, 2020.

## Derivative Financial Instruments

The Company occasionally utilizes derivative financial instruments, such as interest rate swaps, to manage its exposure to fluctuations in interest rates. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instruments. Derivative financial instruments must be effective in reducing the Company's interest rate risk exposure in order to qualify for hedge accounting. When the terms of an underlying transaction are modified, or when the underlying hedged item ceases to exist, all changes in the fair value of the instrument are marked-to-market with changes in value included in net income for each period until the derivative instrument matures or is settled. Any derivative instrument used for risk management that does not meet the hedging criteria is marked-to-market with the changes in value included in net income. The Company has not entered into, and does not plan to enter into, derivative financial instruments for trading or speculative purposes. Additionally, the Company has a policy of entering into derivative contracts only with major financial institutions.

As of October 31, 2022, the Company believes it has no significant risk associated with non-performance of the financial institutions that are the counterparty to its derivative contracts. At October 31, 2022, the Company had approximately $155.7 million in secured mortgage financings subject to interest rate swaps. Such interest rate swaps converted the LIBOR or Secured Overnight Financing Rate ('SOFR')-based variable rates on the mortgage financings to a fixed annual rate of 3.74% per annum. As of October 31, 2022 and 2021, the Company had a deferred liability of $0 and $6.7 million, respectively, (included in accounts payable and accrued expenses on the consolidated balance sheets) relating to the fair value of the Company's interest rate swaps applicable to secured mortgages. As of October 31, 2022 and 2021, the Company had a deferred assets of $15.9 million and $515,000, respectively, (included in other assets on the consolidated balance sheets) relating to the fair value of the Company's interest rate swaps applicable to secured mortgages.

Charges and/or credits relating to the changes in fair values of such interest rate swap are made to other comprehensive (loss) as the swap is deemed effective and is classified as a cash flow hedge.

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URSTADT BIDDLE PROPERTIES INC.

### Comprehensive Income

Comprehensive income is comprised of net income applicable to Common and Class A Common stockholders and other comprehensive income (loss). Other comprehensive income (loss) includes items that are otherwise recorded directly in stockholders' equity, such as unrealized gains and losses on interest rate swaps designated as cash flow hedges, including the Company's share from entities accounted for under the equity method of accounting. At October 31, 2022, accumulated other comprehensive income consisted of net unrealized gains on interest rate swap agreements of $17.2 million, inclusive of the Company's share of accumulated comprehensive income from joint ventures accounted for by the equity method of accounting. At October 31, 2021, accumulated other comprehensive loss consisted of net unrealized losses on interest rate swap agreements of $7.7 million inclusive of the Company's share of accumulated comprehensive income/(loss) from joint ventures accounted for by the equity method of accounting. Unrealized gains and losses included in other comprehensive income/(loss) will be reclassified into earnings when gains and losses are realized.

### Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, and tenant receivables. The Company places its cash and cash equivalents in excess of insured amounts with high quality financial institutions. The Company performs ongoing credit evaluations of its tenants and may require certain tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the terminal value of a tenant's lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space. There is no dependence upon any single tenant.

### Earnings Per Share

The Company calculates basic and diluted earnings per share in accordance with the provisions of ASC Topic 260, 'Earnings Per Share.' Basic earnings per share ('EPS') excludes the impact of dilutive shares and is computed by dividing net income applicable to Common and Class A Common stockholders by the weighted average number of Common shares and Class A Common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other

contracts to issue Common shares or Class A Common shares were exercised or converted into Common shares or Class A Common shares and then shared in the earnings of the Company. Since the cash dividends declared on the Company's Class A Common stock are higher than the dividends declared on the Common Stock, basic and diluted EPS have been calculated using the 'two-class' method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to the weighted average of the dividends declared, outstanding shares per class and participation rights in undistributed earnings.

The following table sets forth the reconciliation between basic and diluted EPS (in thousands):

|  | Year Ended October 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Numerator |  |  |  |
| Net income applicable to common stockholders-basic | $5,790 | $7,366 | $1,849 |
| Effect of dilutive securities: |  |  |  |
| Restricted stock awards | 187 | 190 | 34 |
| Net income applicable to common stockholders-diluted | $5,977 | $7,556 | $1,883 |
| Denominator |  |  |  |
| Denominator for basic EPS-weighted average common shares | 9,326 | 9,244 | 9,144 |
| Effect of dilutive securities: |  |  |  |
| Restricted stock awards | 455 | 364 | 241 |
| Denominator for diluted EPS-weighted average common equivalent shares | 9,781 | 9,608 | 9,385 |
| Numerator |  |  |  |
| Net income applicable to Class A common stockholders-basic | $20,264 | $26,267 | $6,684 |
| Effect of dilutive securities: |  |  |  |
| Restricted stock awards | (187) | (190) | (34) |
| Net income applicable to Class A common stockholders-diluted | $20,077 | $26,077 | $6,650 |
| Denominator |  |  |  |
| Denominator for basic EPS-weighted average Class A common shares | 29,481 | 29,576 | 29,506 |
| Effect of dilutive securities: |  |  |  |
| Restricted stock awards | 196 | 177 | 70 |
| Denominator for diluted EPS-weighted average Class A common equivalent shares | 29,677 | 29,753 | 29,576 |

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# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

## Stock-Based Compensation

The Company accounts for its stock-based compensation plans under the provisions of ASC Topic 718, 'Stock Compensation,' which requires that compensation expense be recognized, based on the fair value of the stock awards less estimated forfeitures. The fair value of stock awards is equal to the fair value of the Company's stock on the grant date. The Company recognizes compensation expense for its stock awards by amortizing the fair value of stock awards over the requisite service periods of such awards. In certain cases as defined in the participant agreements, the vesting of stock awards can be accelerated, which will result in the Company charging to compensation expense the remaining unamortized restricted stock compensation related to those stock awards.

## Segment Reporting

The Company's primary business is the ownership, management, and redevelopment of retail properties. The Company reviews operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. The Company evaluates financial performance using property operating income, which consists of base rental income and tenant reimbursement income, less rental expenses and real estate taxes. Only one of the Company's properties, located in Stamford, CT ('Ridgeway'), is considered significant as its revenue is in excess of 10% of the Company's consolidated total revenues and accordingly is a reportable segment. The Company has aggregated the remainder of our properties as they share similar long-term economic characteristics and have other similarities including the fact that they are operated using consistent business strategies, are typically located in the same major metropolitan area, and have similar tenant mixes.

Ridgeway is located in Stamford, Connecticut and was developed in the 1950's and redeveloped in the mid 1990's. The property contains approximately 374,000 square feet of GLA. It is the dominant grocery-anchored center and the largest non-mall shopping center located in the City of Stamford, Fairfield County, Connecticut.

Segment information about Ridgeway as required by ASC Topic 280 is included below:

|  | Year Ended October 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Ridgeway Revenues | 10.1% | 10.4% | 11.2% |
| All Other Property Revenues | 89.9% | 89.6% | 88.8% |
| Consolidated Revenue | 100.0% | 100.0% | 100.0% |

|  | Year Ended October 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| Ridgeway Assets | 6.5% | 6.3% |
| All Other Property Assets | 93.5% | 93.7% |
| Consolidated Assets (Note 1) | 100.0% | 100.0% |

Note 1-Ridgeway did not have any significant expenditures for additions to long-lived assets in any of the fiscal years ended October 31, 2022, 2021 and 2020.

|  | Year Ended October 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| Ridgeway Percent Leased | 98% | 92% | 92% |

Ridgeway Significant Tenants (by base rent):

|  | Year Ended October 31, |  |  |
| --- | --- | --- | --- |
|  | 2022 | 2021 | 2020 |
| The Stop & Shop Supermarket Company | 21% | 21% | 20% |
| Bed, Bath & Beyond | 15% | 15% | 14% |
| Marshall's Inc., a division of the TJX Companies | 11% | 11% | 10% |
| All Other Tenants at Ridgeway (Note 2) | 53% | 53% | 56% |
| Total | 100% | 100% | 100% |

Note 2-No other tenant accounts for more than 10% of Ridgeway's annual base rents in any of the three years presented. Percentages are calculated as a ratio of the tenants' base rent divided by total base rent of Ridgeway.

Income Statement (In thousands):

|  | Year Ended October 31, 2022 |  |  |
| --- | --- | --- | --- |
|  | Ridgeway | All Other Operating Segments | Total Consolidated |
| Revenues | $14,448 | $128,655 | $143,103 |
| Operating Expenses | $4,553 | $44,271 | $48,824 |
| Interest Expense | $1,603 | $11,572 | $13,175 |
| Depreciation and Amortization | $2,200 | $27,599 | $29,799 |
| Income from Continuing Operations | $6,092 | $37,182 | $43,274 |

28