Urstadt Biddle Properties Inc. Annual Report 2001

FY2001 Annual Report · Urstadt Biddle Properties Inc.

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URSTADT BIDDLE
PR O P E R T I E S I N C .

2001 ANNUAL REPORT

Through the last eight years, we achieved an average
annual growth of 8% in Funds From Operations
and average annual dividend increases of nearly 5%.
We have paid 128 consecutive quarters of
uninterrupted dividends.

(cid:2) Revenues

(cid:2) Funds From
Operations

(cid:2) Dividends

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1994

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1995

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1996

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1997

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1998

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1999

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2000

2001

We are the Right Company
In the Right Business
In the Right Place
At the Right Time

IN
MILLIONS

— $40

— $30

— $20

— $10

— $0

URSTADT BIDDLE PROPERTIES INC.

Urstadt Biddle Properties Inc. (UBP) is a self-administered

publicly held equity real estate investment trust providing

investors with a means of participating in the ownership of

income-producing properties. UBP’s core properties con-

sist of neighborhood and community shopping centers in

the suburban areas of the northeastern United States with

a primary concentration in Fairfield County, Connecticut

and Westchester and Putnam Counties, New York. Other

assets include office and retail buildings, industrial prop-

erties and mortgages.

Class A Common Shares and Common Shares of the Com-

pany trade on the New York Stock Exchange under the

symbols “UBP.A” and “UBP.”

2001 ANNUAL REPORT CONTENTS

Selected Financial Data ..................1

Letter to Stockholders ....................2

Portfolio Review..............................5

Investment Portfolio .......................9

Core Properties..............................10

Financial Statements.....................12

Management’s Discussion ...........29

Tax Status .......................................32

Directors and Officers ..................33

SELECTED FINANCIAL DATA

(In thousands, except per share data)

Year Ended October 31, 2001

2000

1999

1998

1997

1996

1995

1994

Balance Sheet Data:

Total Assets

$218,352

$180,792

$183,774

$165,039

$137,430

$132,160

$149,099

$142,559

Mortgage Notes Payable

$ 47,115

$ 51,903

$ 51,263

$ 32,900

$ 43,687

$ 39,798

$ 57,212

$ 46,386

Preferred Stock

$ 33,462

$ 33,462 $ 33,462

$ 33,462

—

Operating Data:

Total Revenues

$ 36,093

$ 31,009

$ 29,430

$ 25,385

$ 24,719

$ 24,432

$ 22,853

$ 18,969

Total Operating Expenses

$ 26,154

$ 23,281 $ 21,596

$ 17,252

$ 16,238

$ 20,502

$ 26,556

$ 17,707

Net Income Applicable to
Common and Class A
Common Stockholders

Other Data:

$ 10,540

$ 5,442

6,043

$ 5,615

$ 8,589

$ 10,271

$ 3,864

$1,344

Funds from Operations (Note 1) $ 14,611

$ 11,914

$ 11,878

$ 11,782

$ 10,189

$ 9,525

$ 8,510

$7,653

Per Share Data: (Note 2)

Cash Dividends on:

Class A Common Stock
Common Stock

Cash Dividends on Common
and Class A Common
Stock as a Percentage of
Funds from Operations

$ .80
$ .72

$1.52

$ .78
$ .70

$1.48

$ .76
$ .68

$1.44

$ .19
$1.13

$1.32

—
$1.26

$1.26

—
$1.22

$1.22

—
$1.14

$1.14

—
$1.10

$1.10

60%

65%

63%

58%

63%

69%

72%

76%

Note (1): The Company considers Funds from Operations (FFO) to be a supplemental measure of operating performance. FFO is
calculated as net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from
sales of properties, plus depreciation and amortization, and after adjustments for unconsolidated joint ventures.

Note (2): Prior to August 1998, the Company had one class of common stock. In August 1998, the Company declared a one-for-one
stock split effected in the form of a new issue of Class A Common Stock.

For a further discussion of FFO, see Management’s Discussion and Analysis on page 29.

TO OUR STOCKHOLDERS

Prominently located in our offices in

Greenwich is a bronze ship’s bell. We ring it to

signify important events such as the signing of

leases, acquisitions, mortgages, etc. and we

proudly refer to such events as “bell ringers”.

Well — the year 2001 was a “bell ringer” for

Urstadt Biddle Properties.

In last year’s letter to our stockholders,

we described our Company as “Undervalued

and Overlooked”. But this year, Wall Street

realized that it had overlooked a well-run com-

pany that delivers consistent growth in opera-

tions and dividends. Despite the events of
September 11th and the stagnant condition of

both the U.S. economy and the national stock

markets, 2001 was a successful year for us. In

In calendar year
2001, total returns
to our stockholders
were a remarkable
63.9% for our
Common Stock
and 56.9% for
our Class A
Common Stock .

Charles J. Urstadt
Chairman

expenses and ultimately our profitability and

levels of dividends, but, we have little influence

over the external factors which establish the price

of our stock. 2001 marked a turning point in which

perception came close to the reality of perfor-

mance. For that we thank our old stockholders, as

well as our new stockholders, who invested we

think wisely, in the 5.5 million shares of Class A

Common Stock which we sold this year.

During our stock offering “road show” we

closed our presentations by saying “We are the

right company, in the right business, in the right

place, at the right time”.

Our company is the RIGHT COMPANY

because we have demonstrated that well located,

conservatively financed and well managed

calendar year 2001, total returns to our stockholders

(dividends plus stock price growth) were a remarkable

63.9% for our Common Stock and 56.9% for our Class A

Common Stock largely as a result of very attractive divi-

dend yields, good real estate fundamentals and an

investor’s desire for safety. Quite an achievement in the

down market of 2001.

The following chart compares the total returns of

UBP and UBP.A to the major stock market and industry

indices for the calendar year 2001:

63.9%

56.9%

UBP

UBP.A

NAREIT
Shopping
Center Sector

NAREIT
Equity Index

S&P

-11.5%

DJIA

-5.4%

29.9%

13.9%

–20%

20%

40%

60%

80%

100%

properties will produce steady growth and increasing

dividends.

Our enterprise is in the RIGHT BUSINESS because

grocery anchored shopping centers will always be in

demand by our tenants, as well as the customers who

visit our sites. Our tenant base provides basic necessities

and not luxury items, and so we feel we have a steady

marketplace in our properties.

Our targeted region is the RIGHT PLACE,

Westchester, Fairfield, Putnam, Nassau Counties and

Northern New Jersey. The income per capita here is

among the highest in the country. It is also densely popu-

lated with high barriers to entry for construction of new

shopping centers. We feel there will always be new resi-

dents and employment migrating from New York City to

enjoy the benefits of these affluent suburban areas.

Finally, we are in this business at the RIGHT TIME.

With the present slowdown in the economy as well as

the reluctance of consumers to travel, we believe our

properties will not be adversely affected by the economic

We have long felt and often stated that the manage-

slowdown and there will be increased acquisition

ment of your Company is responsible for revenues and

opportunities.

NEW STOCK ISSUE

This year the Company returned to the

public capital markets for the first time in 18

years. In October, we sold 4.8 million shares of the

Company’s Class A Common Stock at $9.30 per

share in a highly successful secondary public

stock offering and in November, the underwriters

exercised an option to purchase an additional

699,222 shares. Net proceeds from these offerings

to us were more than $47 million.

With the proceeds from the stock offering

and historically low interest rates on borrowings,

we are adequately financed to buy additional

properties in our target area. Our challenge is to

put these proceeds to work quickly and profitably.

FUNDS FROM OPERATIONS

By year end,
the percentage
of space in our
properties that
was leased rose
to 98%.

Willing L. Biddle
President

DIVIDENDS

Since its inception more than 32 years

ago, the Company has paid uninterrupted

dividends on its Common Shares and Class A

Common Shares. We are proud to state that

the next quarterly payment will be the
Company’s 129th consecutive quarterly
dividend.

We are also pleased to report that for the

eighth consecutive year the Board of Directors

in December 2001 approved an increase in

the quarterly dividend rates. Funds from

Operations have increased over this same

period by more than the rate of increase in the

dividend and thus the Company’s cash flow coverage of

the dividend has also increased. For 2001, our dividend

payout rate was approximately 65% of our recurring

funds from operations.

For the eighth consecutive year, the Company has

reported an increase in its Funds From Operations (FFO),

OPERATIONS

The Company has
no significant
mortgage repay-
ment obligations
until 2006 and all
of our mortgages
have fixed rates
of interest at
favorable rates.

a supplemental measure of operat-

ing performance used by REITs.

In 2001, FFO increased to $14.6

million from $11.9 million last

year. This year’s FFO includes $1.1

million in lease termination income.

Other than the lease termination

income, our FFO increased as a

result of higher occupancies, new

leasing completed this year, and

the effects of property acquisitions.

Since 1994, FFO has grown at a

better than average annual rate

of 8%.

James R. Moore
Executive Vice President

Our success is due to our capable hardworking

acquisition, management and leasing staff.

We made significant progress in leasing vacant

space this year and also raised the leased rates of our

properties to their highest lev-

els in recent years. By year end,

the percentage of space in our

100%

properties that was leased rose

to 98%. We completed the re-

tenanting of our Meriden, CT

property and made significant

improvements to many others.

We also made progress towards

our stated goal of concentrating

our assets close to our head-

quarters by acquiring two

80%

60%

40%

20%

Percentage of Portfolio
Leased at Year-End

%
5
9

%
6
9

%
7
9

%
8
9

1997

1998

1999

2000

2001

TO OUR STOCKHOLDERS

properties in our target area and selling three non-core

purchase was at a substantial discount to the preferred

properties. Soft economies tend to increase property avail-

stock’s redemption price. The Company will report an

ability and we anticipate 2002 to be an active acquisitions

increase in net income applicable to Common and Class A

year. We have increased the staffing of our acquisitions and

Common stockholders from this transaction in the first

leasing departments to help accomplish this goal.

quarter of fiscal 2002.

CAPITAL

OUTLOOK

The Company’s capital base is stronger than ever.

This Company has experienced and survived two

A portion of the net proceeds from the sale of Class A

real estate recessions and we are in the midst of the third.

Common Stock was used to repay all of the Company’s

We do not share the view held by some that “all will be

outstanding bank credit line debt before year end.

back to normal” before the end of 2002. However, we do

Currently, we have $40 million in available bank revolving

feel that our long term strategy of low debt with fixed

credit lines. Our total mortgage debt level is modest. At

interest rates and long maturities has placed us in an excel-

year end, mortgages comprised less than 25% of the

lent defensive position. We also feel that this economic cli-

Company’s total capitalization which is low compared to

mate will increase the opportunities for us to capitalize on

the REIT Industry average. Most importantly, as the chart

our financial strength and add additional outstanding

below illustrates, the Company has no mortgages due

properties to our present holdings.

until 2006 and all of our mortgages have fixed rates of

It is with great sadness that we inform you of the

interest at favorable rates.

untimely passing of our former director Paul D. Paganucci.

Scheduled Maturities of Mortgage Debt
In thousands (with average interest rates for debt maturing each year)

He provided us with wise counsel and a warmth of per-

sonality which never will be forgotten. We extend our

deepest sympathies to his wife, Marilyn, and his family.

In closing, we extend our gratitude to our outstand-

ing Board of Directors and staff who have made this “bell

ringer” year such a great success and to both our old and

new shareholders for your past and future support of the

7.78%

7.25%

team’s efforts!

7.09%

7.84%

8.13%

$18,000

$16,000

$14,000

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Sincerely yours,

Year

Charles J. Urstadt

Willing L. Biddle

REPURCHASE OF $20 MILLION
OF PREFERRED STOCK....... .....

Shortly after year-end, we repurchased $20 million of

the Company’s outstanding Series B Preferred Stock in a

Chairman

President

negotiated transaction with a preferred stockholder. The

January 15, 2002

PORTFOLIO REVIEW

Old Navy, Townline Square, Meriden, Connecticut

Our strategy is to concentrate our

portfolio of properties in a geo-

graphic area close to our head-

quarters in Fairfield County,

Connecticut, and primarily in one

property type — grocery-anchored

shopping centers. Our focus is on

well-located neighborhood shop-

ping centers leased to retailers

who deliver basic services and

products to consumers. We are

also receptive to acquiring well-

located high yield office properties

near our executive offices in

Greenwich, Connecticut.

LEASING

In 2001, we continued our success in

leasing vacant space and positioning

our properties for future growth.

Overall, we signed new leases and

negotiated lease renewals totaling

352,000 square feet of space, about

14% of the Company’s total leasable

area. Our leased portfolio rose from

97% at the end of 2000 to 98% this

year. At Townline Square we com-

pleted one of the Company’s largest

re-tenanting projects in several years.

We signed new leases for 115,000

square feet of space to replace tenants

who were paying rent but vacated the

center several years ago. Old Navy, Linens ‘N Things, Toy

Works and Bath & Body Works opened for business this

year and have revitalized the property. We also signed

Townline Square, Meriden, Connecticut

PORTFOLIO REVIEW

Danbury Square, Danbury, Connecticut

leases with

Burlington Coat

Factory, Michaels

Crafts and Chuck E

Cheese and expect

these national ten-

ants to open at

Townline in Spring

2002. At Danbury

Square, Christmas

Tree Shops, a highly

successful regional

home furnishings

retailer opened a

magnificent new

47,000 square foot

store this summer. David’s Bridal, a division of the May

and added a regional home furnishings chain to our

Company opened in December 2001 bringing occupancy

tenant roster. In Tempe, Arizona we leased 31,000

at the center to 100%. At Newington Park, Linens ‘N

square feet to 99¢ Stores. The property is now 100%

Things opened a new 27,000 square foot store this

occupied.

summer and Outback Steak House

will open for business in 2003, raising

occupancy at that property to 100%.

At the Goodwives Shopping Center,

the former anchor tenant, Grand

Union Supermarket filed for bank-

ruptcy early in the year and its lease

was sold to Shaw’s Supermarket, a

high quality New England grocery

operator. We are exploring opportuni-

ties with Shaw’s to expand its store

in our center. At the Eastchester

Mall, we received the necessary

approvals to begin a facade upgrade

Goodwives Shopping Center, Darien, Connecticut

PORTFOLIO REVIEW

Chilmark Shopping Center, Briarcliff Manor, New York

With the recent downturn in the U.S. economy, we

Briarcliff Manor, New York and not far from our

believe our properties which are well located and leased

Arcadian Shopping Center in Westchester County. We

to basic necessity-type goods retailers, are insulated from

plan to renovate the center and expand the leased area

a less favorable economic climate. We continue to attract

of the anchor tenant. We also purchased a small medical

quality tenants to lease vacancies when they arise.

office building located in Greenwich, Connecticut. We

PORTFOLIO CHANGES

We purchased the 38,000 square foot Chilmark

Shopping Center located in the affluent town of

disposed of three non-core properties by selling our

Albany, Georgia warehouse property, undeveloped

land in Denver, Colorado and the Countryside Square

Shopping Center in Clearwater, Florida, that was owned

in partnership.

Westchester Community College, Briarcliff Manor, New York

7 Riversville Road, Greenwich, Connecticut

PORTFOLIO REVIEW

John Merritt (left), Vice President Acquisitions and
James Aries, Vice President, Acquisitions and Leasing

Shortly after year end we

strengthened our acquisitions

and leasing departments with

the hiring of Jim Aries as

Vice President, Acquisitions

and Leasing. Jim brings to

our company a solid retail

real estate background, with

more than ten years of “big

box” anchor tenant leasing

and property acquisitions

experience. As we look ahead,

we believe there will be

attractive investment oppor-

tunities available to us. We

have the financial resources

to benefit from these opportu-

nities and expect to add to

our portfolio in the coming

year.

Urstadt Biddle Properties
Corporate Headquarters, Greenwich, CT

INVESTMENT PORTFOLIO

URSTADT BIDDLE PROPERTIES INC.

Core Properties

UBP owns or has interests in twelve shopping centers, three mixed-use commercial properties and five office buildings
which total 1,816,000 square feet.

Location

Square Feet

Principal Tenants

Property Type

Springfield, Massachusetts

Meriden, Connecticut

Danbury, Connecticut

Briarcliff Manor, New York

Carmel, New York

Wayne, New Jersey

Darien, Connecticut

Somers, New York

Farmingdale, New York

Eastchester, New York

Briarcliff Manor, New York

Somers, New York

314,000

312,000

194,000

160,000

126,000

102,000

95,000

78,000

70,000

68,000

38,000

19,000

A&P, Toy Works, Fashion Bug

Shopping center

ShopRite, Old Navy, Linens ‘N Things Shopping center

Barnes & Noble, Christmas Tree Shops Shopping center

Stop & Shop, Toy Works

ShopRite, Eckerd Drugs

A&P, PNC Bank

Shaw’s Supermarket

Gristede’s, US Post Office

King Kullen, Eckerd Drugs

Food Emporium (A&P)

Dress Barn, Radio Shack

Shopping center*

Shopping center

Shopping center*

Shopping center

Putnam County Savings Bank

Shopping center

Newington, New Hampshire

102,000

Linens ‘N Things

Ridgefield, Connecticut

Briarcliff Manor, New York

Greenwich, Connecticut

48,000

29,000

61,000

Chico’s

Westchester Community College

Greenwich Hospital,
Urstadt Biddle Properties
(Executive Offices)

Mixed-use

5 Office buildings

Non-Core Properties

UBP owns one office building containing 202,000 square feet, one retail property containing 126,000 square feet and
two industrial properties with a total of 423,000 square feet. The Company also holds long-term mortgages totalling
$3.5 million.

Location

Square Feet

Principal Tenant

Property Type

Southfield, Michigan

Tempe, Arizona

Dallas, Texas
St. Louis, Missouri

* General partner interest.

202,000

126,000

253,000
170,000

Giffels Associates

Mervyn’s

Office building*

Shopping center

DaimlerChrysler Corporation
DaimlerChrysler Corporation

Parts distribution facility
Parts distribution facility

URSTADT BIDDLE PROPERTIES INC.

CORE PROPERTIES

Towne Centre Shopping Center
Somers, New York

Carmel ShopRite Center
Carmel, New York

Arcadian Shopping Center
Briarcliff Manor, New York

Heritage 202 Center
Somers, New York

Chilmark Shopping Center
Briarcliff Manor, New York

25 Valley Drive
Greenwich, Connecticut

7 Riversville Road
Greenwich, Connecticut

530 Old Post Road
Greenwich, Connecticut

Eastchester Mall
Eastchester, New York

URSTADT BIDDLE
PROPERTIES
Greenwich,
Connecticut

Valley Ridge Shopping Center
Wayne, New Jersey

Five Town Plaza
Springfield, Massachusetts

Danbury Square
Danbury, Connecticut

Newington Park
Newington, New Hampshire

Ridgefield Center
Ridgefield, Connecticut

Townline Square
Meriden, Connecticut

Goodwives Shopping Center
Darien, Connecticut

Bi-County Shopping Center
Farmingdale, New York

FINANCIAL STATEMENTS

URSTADT BIDDLE PROPERTIES INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

ASSETS

Real Estate Investments:

Properties owned — at cost, net of accumulated depreciation
Properties available for sale — at cost, net of accumulated depreciation

and recoveries

Investment in unconsolidated joint venture
Mortgage notes receivable

Cash and cash equivalents
Interest and rent receivable
Deferred charges, net of accumulated amortization
Prepaid expenses and other assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities:

Mortgage notes payable
Accounts payable and accrued expenses
Deferred officers’ compensation
Other liabilities

Minority Interests

Preferred Stock, par value $.01 per share; 20,000,000 shares authorized;

8.99% Series B Senior Cumulative Preferred stock (liquidation preference of
$100 per share); 350,000 shares issued and outstanding in 2001 and 2000

October 31,

2001

2000

$160,152

$146,851

11,039

—

3,507

12,158

8,859
2,379

174,698

170,247

34,080
3,826
3,477
2,271

1,952
3,853
2,824
1,916

$218,352

$180,792

$47,115
2,670
230
4,142

54,157

$51,903
1,222
102
2,090

55,317

4,365

4,832

33,462

Stockholders’ Equity:

Excess stock, par value $.01 per share; 10,000,000 shares authorized;

none issued and outstanding

Common stock, par value $.01 per share; 30,000,000 shares authorized; 6,242,139
and 5,557,387 issued and outstanding shares in 2001 and 2000, respectively

Class A Common stock, par value $.01 per share; 40,000,000 shares authorized;

9,600,019 and 5,356,249 issued and outstanding shares in 2001 and
2000 respectively

—

Additional paid in capital

Cumulative distributions in excess of net income

Unamortized restricted stock compensation and notes receivable

from officers/stockholders

162,763

(31,654)

122,448

(33,397)

(4,899)

(1,979)

126,368

87,181

$218,352

$180,792

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

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

Revenues

Operating leases
Lease termination income
Interest and other

Operating Expenses
Property expenses
Interest
Depreciation and amortization
General and administrative expenses
Directors’ fees and expenses

Operating Income

Equity in Earnings of Unconsolidated Joint Venture

Minority Interests in Results of Consolidated Joint Ventures

Gains on Sales of Real Estate Investments

Net Income

Preferred Stock Dividends

Net Income Applicable to Common and

Class A Common Stockholders

Basic Earnings per Share:
Common

Class A Common

Weighted Average Number of Shares Outstanding:
Common

Class A Common

Diluted Earnings Per Share:
Common

Class A Common

Weighted Average Number of Shares Outstanding:
Common and Common Equivalent

Class A Common and Class A Common Equivalent

URSTADT BIDDLE PROPERTIES INC.

Year Ended October 31,

2001

2000

1999

$34,209
1,137
747
36,093

11,502
4,456
7,568
2,484
144

26,154

9,939

3,864

(432)

316

13,687

(3,147)

$30,242
—
767
31,009

10,413
4,245
6,307
2,152
164

23,281

7,728

245

(451)

1,067

8,589

$28,666
—
764
29,430

9,460
3,913
5,896
2,150
177

21,596

7,834

384

(392)

1,364

9,190

(3,147)

$10,540

$5,442

$6,043

$.91

$1.01

5,881

5,182

$.88

$.97

6,038

5,606

$.50

$.55

5,351

5,059

$.49

$.55

5,433

5,532

$.55

$.62

5,236

5,101

$.54

$.61

5,317

5,545

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

FINANCIAL STATEMENTS

URSTADT BIDDLE PROPERTIES INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Operating Activities:

Net income
Adjustments to reconcile net income to net cash provided

by operating activities:

Depreciation and amortization
Restricted stock compensation
Recovery of investment in properties owned

subject to financing leases

Equity in income of unconsolidated joint venture
Gains on sales of real estate investments
Decrease (increase) in interest and rent receivable
Increase (decrease) in accounts payable and accrued expenses
Decrease (increase) in other assets and other liabilities, net

Year Ended October 31,

2001

2000

1999

$13,687

$8,589

$9,190

7,568
769

191
(3,864)
(316)
98
1,448
1,469

6,307
630

1,214
(245)
(1,067)
(481)
(684)
(371)

5,896
488

1,249
(384)
(1,364)
(925)
780
(507)

Net Cash Provided by Operating Activities

21,050

13,892

14,423

Investing Activities:

Acquisitions of properties
Acquisition of minority interest
Improvements to properties and deferred charges
Investment in unconsolidated joint venture
Net proceeds from sale of properties
Distributions received from unconsolidated joint venture
Payments received on mortgage notes receivable
Miscellaneous

Net Cash (Used in) Investing Activities

Financing Activities:

Sales of Common and Class A Common shares
Proceeds from mortgage notes payable and bank loans
Payments on mortgage notes payable and bank loans
Dividends paid – Common and Class A Common shares
Dividends paid – Preferred Stock
Purchases of Common and Class A Common shares

Net Cash Provided by (Used in) Financing Activities

Net Increase (Decrease) In Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Year

Cash and Cash Equivalents at End of Year

(5,606)
(1,013)
(11,695)
(480)
1,216
6,544
72
—

(10,962)

42,959
26,250
(35,190)
(8,797)
(3,147)
(35)

22,040

32,128

1,952

$34,080

(1,627)
—
(6,642)
(535)
3,921
1,500
121
—

(3,262)

2,713
6,500
(7,861)
(7,712)
(3,147)
(1,929)

(11,436)

(806)

2,758

$1,952

(9,717)
—
(3,985)
(635)
2,765
600
107
309

(10,556)

2,232
19,000
(15,039)
(7,471)
(3,147)
(584)

(5,009)

(1,142)

3,900

$2,758

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

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except shares and per share data)

URSTADT BIDDLE PROPERTIES INC.

Common Stock

Class A Common Stock

Outstanding
Number of
Shares

Par
Value

Outstanding
Number of
Shares

Par
Value

Unamortized
Restricted
Stock
(Cumulative
Additional Distributions Compensation
and Notes
In Excess of
Receivable
Net Income)

Paid In
Capital

Total

Balances — October 31, 1998

5,221,602

$52

5,193,650

$52

$118,558

$(29,699)

$(1,634)

$87,329

Net income applicable to Common and

Class A Common stockholders

Cash dividends paid:

Common stock ($.68 per share)
Class A Common stock
($.76 per share)

Deemed repurchase of Class A Common

stock and reissuance of Common stock

Sale of additional shares
Sale of additional shares under dividend

reinvestment plan

Shares issued under restricted stock plan
Amortization of restricted stock

compensation
Purchases of shares

—

272,727
32,000

17,816
46,500

—

3
—

—
1

—
(58,800)

—
(1)

—

(272,727)
212,000

18,616
46,500

—
(14,000)

Balances — October 31, 1999

5,531,845

55 5,184,039

Net income applicable to Common and

Class A Common stockholders

Cash dividends paid:

Common stock ($.70 per share)
Class A Common stock ($.78 per share)

Sale of additional shares
Sale of additional shares under dividend

reinvestment plan

Shares issued under restricted stock plan
Amortization of restricted stock

compensation
Purchases of shares

—

—
—
64,400

21,367
48,375

—
(108,600)

—

—
—
—

—
1

—
(1)

—

—
—
256,400

22,035
48,375

—
(154,600)

Balances — October 31, 2000

5,557,387

55 5,356,249

Net income applicable to Common and

Class A Common stockholders

Cash dividends paid:

Common stock ($.72 per share)
Class A Common stock ($.80 per share)

Sale of additional shares
Sale of additional shares under dividend

reinvestment plan

Shares issued under restricted stock plan
Amortization of restricted stock

compensation
Purchases of shares
Exercise of stock options
Note from officer upon exercise of

stock options

Deemed repurchase of Class A Common

stock

—

—
—
200,000

18,652
48,000

—
(900)
419,000

—

—
—
2

—
—

—
—
5

—

—
—
4,805,000

23,257
48,000

—
(2,800)
24,859

—

(3)
2

—
1

—
—

—

—
—
3

—
1

—
(2)

—

—
—
48

—
—

—
—
—

—

—
1,943

287
759

—
(583)

6,043

(3,511)

(3,960)

—
—

—

—
—

—
(761)

488
—

6,043

(3,511)

(3,960)

—
1,945

287
—

488
(584)

120,964

(31,127)

(1,907)

88,037

—

—
—
2,406

304
700

—
(1,926)

5,442

(3,748)
(3,964)
—

—
—

—

—
—
—

—
(702)

630
—

5,442

(3,748)
(3,964)
2,409

304
—

630
(1,929)

122,448

(33,397)

(1,979)

87,181

—

10,540

—
—
42,521

343
686

—
(35)
3,043

——

(4,487)
(4,310)
—

—
—

—
—
—

—

—
—
—

—
(686)

769
—
—

10,540

(4,487)
(4,310)
42,571

343
—

769
(35)
3,048

(3,003)

—

(6,249)

(654,546)

(6)

(6,243)

Balances — October 31, 2001

6,242,139

$62 9,600,019

$96

$162,763

$(31,654)

$(4,899)

$126,368

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business
Urstadt Biddle Properties Inc. (Company), a real estate investment trust (REIT), is 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. Other assets include office and retail buildings and indus-
trial properties. The Company’s major tenants include supermarket chains and other retailers who sell basic
necessities. At October 31, 2001, the Company owned or had interests in 24 properties.

Principles of Consolidation
The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and
joint ventures in which the Company has the ability to control the affairs of the venture. Prior to September
2001, the Company had an investment in an unconsolidated joint venture which was accounted for by the equi-
ty method of accounting. Under the equity method, only the Company’s net investment and proportionate
share of income or loss of the unconsolidated joint venture is reflected in the financial statements. All significant
intercompany transactions and balances have been eliminated in consolidation.

Reclassifications
Certain 2000 amounts have been reclassified to conform to the 2001 presentation.

Accounting for Leases
The Company accounts for its leases of real property in accordance with the provisions of Financial Accounting
Standards Statement No. 13, “Accounting for Leases,” as amended. This Statement sets forth specific criteria for
determining whether a lease should be accounted for as an operating lease or a direct financing lease. In gener-
al, the financing lease method applies where property is under long-term lease to a creditworthy tenant and the
present value of the minimum required lease payments at the inception of a lease is at least 90% of the market
value of the property leased. Other leases are accounted for as operating leases.

Direct financing leases are carried at the aggregate minimum lease payments to be received over the terms of
the leases, plus an estimated residual value, less unearned income. The income component of rental payments
received, which is based upon the interest rate implicit in the lease, is reflected as financing lease revenues and
the remaining portion of the rent is reflected as a recovery of the financing lease asset.

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 (IRC). Under those sections, a REIT, that among other things, distributes at least 95% (90% for tax
years beginning after December 31, 2000) of real estate trust taxable income will not be taxed on that portion of
its taxable income which is distributed. The Company believes it qualifies as a REIT and has
distributed all of its taxable income for the fiscal years through 2001 in accordance with the provisions of Section
858 of the IRC. Accordingly, no provision has been made for Federal income taxes in the accompanying consoli-
dated financial statements.

Taxable income of the Company prior to the dividends paid deduction for the years ended October 31, 2001,
2000 and 1999 was approximately $11,394,000, $11,936,000 and $8,600,000 respectively. The difference between
net income for financial reporting purposes and taxable income results from, among other things, differences
in adjusted bases for capital gains and losses and different methods of accounting for leases, depreciable lives
related to the properties owned and investments in joint ventures.

Depreciation and Amortization
The Company uses the straight-line method for depreciation and amortization. Properties owned and properties
available for sale are depreciated over the estimated useful lives of the properties, which range from 30 to 40
years. Tenant improvements and deferred leasing costs are amortized over the life of the related leases. All other
deferred charges are amortized over the terms of the agreements to which they relate.

Properties Available for Sale
A property is classified as available for sale upon determination by the Board of Directors that the property is to
be marketed for sale in the normal course of business over the next several years.

URSTADT BIDDLE PROPERTIES INC.

Real Estate Investment Impairment
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is
measured by a comparison of the carrying amount of the asset to future net cash flows, undiscounted and with-
out interest, expected to be generated by the asset. If such assets are considered impaired, the impairment to be
recognized is measured by the amount by which the carrying amount of the assets exceed the fair value of the
assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. It
is the Company’s policy to reclassify properties available for sale as assets to be disposed of upon determination
that such properties will be sold within one year.

Capitalization
Acquisition of real estate investments, including brokerage, legal and other external costs incurred in acquiring
new properties are capitalized as incurred. Additions, renovations and improvements that enhance and/or
extend the useful life of a property are also capitalized. Direct leasing commissions, legal and other leasing
related costs expended in connection with the Company’s successful leasing activities are capitalized as
incurred. Expenditures for ordinary maintenance, repairs and improvements that do not materially prolong
the normal useful life of an asset are charged to operations as incurred.

Income Recognition
Revenues from operating and finance leases include revenues from properties owned and properties available
for sale. Rental income is generally recognized based on the terms of leases entered into with tenants. Rental
income from leases with scheduled rent increases is recognized on a straight-line basis over the lease term.
Percentage rent is recognized when a specific tenant’s sales breakpoint is achieved. Property operating cost
recoveries from tenants of common area maintenance, real estate taxes, and other recoverable costs are
recognized in the period the related expenses are incurred. Interest income is recognized as it is earned. Gains
and losses on sales of properties are recorded when the criteria for recognizing such gains or losses under gener-
ally accepted accounting principles have been met.

Statements of Cash Flows
The Company considers short-term investments with original maturities of 90 days or less to be cash
equivalents.

Use of Estimates
The preparation of financial statements requires management to make use of estimates and assumptions that
affect amounts reported in the financial statements as well as certain disclosures. Actual results could differ
from those estimates.

Fair Value of Financial Instruments
The carrying values of cash and cash equivalents, rent and interest receivable, accounts payable, accrued
expenses and other assets and liabilities are reasonable estimates of their fair values because of the short maturi-
ties of these instruments. Mortgage notes receivable and payable have aggregate carrying values that approxi-
mate their estimated fair values based upon the remaining maturities and interest rates for loans with similar
terms and remaining maturities. The fair value of these financial instruments were not materially different from
their carrying values.

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 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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

Numerator
Net income applicable to common stockholders – basic
Effect of dilutive securities:

Operating partnership units

Net income applicable to common stockholders — diluted

Denominator
Denominator for basic EPS-weighted average common shares
Effect of dilutive securities:
Stock options and awards

Denominator for diluted EPS – weighted average common
equivalent shares

Numerator
Net income applicable to Class A common stockholders-basic
Effect of dilutive securities

Operating partnership units

Net income applicable to Class A common stockholders – diluted

Denominator
Denominator for basic EPS – weighted average Class A common shares
Effect of dilutive securities:
Stock options and awards
Operating partnership units

Denominator for diluted EPS – weighted average Class A common

equivalent shares

2001

2000

1999

$5,326

$2,650

$2,893

(32)
$5,294

28
$2,678

—
$2,893

5,881

5,351

5,236

157

6,038

5,433

5,317

$5,214

$2,792

$3,150

246
$5,460

246
$3,038

218
$3,368

5,182

5,059

5,101

135
289

90
383

104
340

5,606

5,532

5,545

The weighted average Common equivalent shares and Class A common equivalent shares for the years ended
October 31, 2001, 2000 and 1999 each exclude 54,553 shares. These shares were not included in the calculation
of diluted EPS because the effect would be anti-dilutive.

Derivative Instrument and Hedging Activities
The Company adopted the provisions of Financial Accounting Standards Board Statement No. 133 “Accounting
for Derivative Instruments and Hedging Activities” in fiscal 2001. The statement generally requires that all
derivative instruments be reflected in the financial statements at their estimated fair value. The Company does
not generally enter into derivative contracts for either investment or hedging purposes and accordingly there
was no effect on the Company’s financial position or results of operations as a result of the adoption of this
statement.

New Accounting Pronouncement
In 2001, the Financial Accounting Standards Board issued Statement No. 144 “Accounting for the Impairment
or Disposal of Long Lived Assets” which updates and clarifies the accounting and reporting for impairment
of assets held in use and to be disposed of. The Statement, among other things, will require the Company to
classify the operations and cash flow of properties to be disposed of as discontinued operations. The Company
expects to adopt the provisions of the Statement in Fiscal 2003, and does not expect the Statement to have a
material impact on the Company’s financial position or results of operations.

URSTADT BIDDLE PROPERTIES INC.

(2) REAL ESTATE INVESTMENTS
The Company’s investments in real estate were composed of the following at October 31, 2001 and 2000
(in thousands):

Retail
Office/Mixed Use
Industrial
Undeveloped Land

Properties
Owned

$139,772
20,076
—
304
$160,152

Properties
Available
for Sale

Mortgage
Notes
Receivable

$ 2,010
6,995
2,034
—-
$11,039

$3,507
—
—
—-
$3,507

2001
Totals

$145,289
27,071
2,034
304
$174,698

2000
Totals

$143,367
23,233
2,543
1,104
$170,247

The Company’s investments at October 31, 2001, consisted of equity interests in 24 properties, which are
located in various regions throughout the United States and mortgage notes. As a significant concentration of
the Company’s properties are in the Northeast, market changes in this region could effect the Company’s
leasing efforts and ultimately on its overall results of operations. The following is a summary of the geographic
locations of the Company’s investments at October 31, 2001 and 2000 (in thousands):

Northeast
Southeast
Midwest
Southwest

(3) PROPERTIES OWNED
The components of properties owned were as follows (in thousands):

Land
Buildings and improvements

Accumulated depreciation

2001

$160,897
1,200
8,064
4,537
$174,698

2001

$ 32,524
159,650
192,174
(32,022)
$160,152

2000

$147,620
9,060
8,782
4,785
$170,247

2000

$ 29,592
144,644
174,236
(27,385)
$146,851

Space at properties owned by the Company is generally leased to various individual tenants under short
and intermediate term leases which are accounted for as operating leases.

Minimum rental payments on non-cancelable operating leases become due as follows: 2002 – $22,605,000;
2003 – $21,117,000; 2004 – $19,333,000; 2005 – $17,564,000; 2006 – $15,738,000 and thereafter – $78,098,000.

Certain of the Company’s leases provide for the payment of additional rent based on a percentage of the ten-
ant’s revenues. Such additional percentage rents are included in operating lease income and aggregated approx-
imately $70,000, $148,000, and $165,000, in 2001, 2000 and 1999 respectively.

In fiscal 2001, the Company received net proceeds of $1,137,000 in satisfaction of all claims against a former ten-
ant arising from the tenant’s filing of a petition in bankruptcy and the tenant’s rejection of its lease at one of the
Company’s properties. The settlement amount has been reflected in revenues in the accompanying consolidated
statement of income as lease termination income in the year ended October 31, 2001.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(3) PROPERTIES OWNED (continued)

The Company is the general partner in a consolidated joint venture which owns the Eastchester Mall in
Eastchester, New York. The limited partner is entitled to preferential distributions of cash flow from the proper-
ty and may put its interest in the joint venture to the Company for a fixed number of shares of Common stock
and Class A Common stock of the Company. The Company, at its option, may redeem the limited partner’s
interest for cash. The Company also has an option to purchase the limited partner’s interest after a certain peri-
od. The partnership agreement, among other things, restricts the sale or refinancing of the property without the
limited partner’s consent.

The Company is also the general partner in a consolidated joint venture that owns the Arcadian Shopping
Center in Briarcliff Manor, New York. In fiscal 1999, the limited partners contributed the property, subject to a
$6.3 million first mortgage to the joint venture in exchange for operating partnership units (OPU’s) of the joint
venture. The OPU’s are exchangeable into an equivalent number of shares of the Company’s Class A Common
stock. The limited partners are entitled to preferential distributions of cash flow from the property and may put
their partnership interests to the Company at the general partner’s option, for cash or Class A Common stock of
the Company at a unit price as defined in the partnership agreement. The Company has the option to purchase
the limited partners interest for cash after a certain period. In fiscal 2001, the Company redeemed, at net book
value, 127,548 OPU’s for cash of $1.0 million. The partnership agreement, among other things, places certain
restrictions on the sale or refinancing of the property without the limited partners’ consent for a specified peri-
od; thereafter the partnership agreement imposes no such restrictions. The acquisition of the shopping center
and the assumption of the first mortgage by the joint venture represent noncash investing and financing activi-
ties and therefore are not included in the accompanying 1999 consolidated statement of cash flows.

The limited partners interests in both partnerships are reflected in the accompanying consolidated financial
statements as Minority Interests.

In fiscal 2001, the Company entered into separate purchase agreements to acquire an office property and a shop-
ping center (the “Properties”) for purchase prices totaling $9.5 million. The Properties are owned by unrelated
title insurance companies (the LLC’s) to position the Company to effect a tax-free exchange of properties under
Section 1031 of the IRC. Pursuant to certain Exchange Agreements between the Company and the LLCs (the
“Exchange Agreements”), the Company loaned the net purchase prices of the respective Properties to the LLCs
to complete the purchase of the Properties. The LLCs have net leased the Properties to the Company for month-
ly lease payments equal to the debt service on the mortgage loans. The Exchange Agreements provide that on
the earlier of the closing of the sale of a property or six months from the date of the assignment of the Purchase
Agreements, the LLCs will convey the Properties directly to the Company in satisfaction of the loans. In
December 2001, the office property was conveyed to the Company in satisfaction of the corresponding loan.

Since the Company effectively has all the risks and rewards of ownership, the net leases and mortgage loans
with the LLCs referred to above have been given no accounting recognition and the transactions have been
recorded as purchases of the properties. The properties are reflected at their respective purchase costs in
“Properties Owned” in the accompanying consolidated balance sheet at October 31, 2001.

In connection with the acquisition of the shopping center, the Company assumed a first mortgage of $4.2 mil-
lion. The assumption of the first mortgage represents a non-cash financing activity and is therefore not included
in the accompanying 2001 consolidated statement of cash flows.

In fiscal 2000, the Company purchased one office property for $1.65 million.

In fiscal 1999, the Company acquired interests in three properties for total consideration of $23 million,
including the assumption of a first mortgage loan of $4.1 million. The assumption of the first mortgage
represents a noncash financing activity and is therefore not included in the accompanying 1999 consolidated
statement of cash flows.

URSTADT BIDDLE PROPERTIES INC.

(4) PROPERTIES AVAILABLE FOR SALE

The Board of Directors authorized a plan to sell all of the non-core properties of the Company over a period of
several years. At October 31, 2001, the non-core properties, which have been classified as Properties Available
for Sale, consist of two distribution and service properties, one office building and one retail property located
outside of the Northeast region of the United States.

At October 31, 2001 and 2000, properties available for sale consisted of the following (in thousands):

Properties available for sale subject to:
Operating leases
Direct financing leases

2001

2000

$11,039
—
$11,039

$ 9,615
2,543
$12,158

Operating Leases
The components of properties available for sale subject to operating leases were as follows (in thousands):

Land
Buildings and improvements

Accumulated depreciation

2001

$ 1,493
17,970
19,463
(8,424)
$11,039

2000

$ 2,292
15,706
17,998
(8,383)
$ 9,615

Minimum rental payments on non-cancelable operating leases become due as follows: 2002 – $5,667,000;
2003 – $4,956,000; 2004 – $4,304,000; 2005 – $4,304,000; 2006 – $4,416,000 and thereafter $7,441,000.

Sales of Properties
In fiscal 2001, the Company sold a non-core property to the property’s sole tenant for $100,000. There was no
gain or loss on the sale. The Company also sold undeveloped land for a net gain on the sale of the property
of $316,000.

In fiscal 2000, the Company sold two of its non-core properties for net gains on the sales of the properties
of $1,067,000.

In fiscal 1999, the Company sold one of its non-core properties for a net gain on the sale of the property
of $1,364,000.

The net operating income of the properties sold in each of the years ended October 31, 2001, 2000 and 1999
was $73,000, $226,000 and $754,000.

In fiscal 2001, the Company had a contract to sell one of its non-core properties which was classified as a prop-
erty held for sale. During the Company’s fourth quarter of fiscal 2001 the contract for sale was terminated and
the property was reclassified as available for sale.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(5) INVESTMENT IN UNCONSOLIDATED JOINT VENTURE

The Company is the sole general partner in Countryside Square Limited Partnership (the “Partnership”), which
owned the Countryside Square Shopping Center in Clearwater, Florida. Upon the formation of the Partnership,
the Company contributed the property and the limited partners contributed 600,000 Common shares of the
Company. In 1998, the Partnership received 600,000 Class A Common shares pursuant to a stock dividend and,
in 1999, exchanged the 600,000 Common shares with an affiliate for an equivalent number of Class A Common
shares. After the exchange, the Partnership owned 1,200,000 shares of Class A Common stock of the Company.
The Company accounted for its proportionate interest in the Class A Common shares owned by the Partnership
as a deemed repurchase of 545,454 Class A Common shares and reduced its investment in the unconsolidated
joint venture and stockholders’ equity in an amount equal to the fair value of the shares repurchased.

In September 2001, the property was sold by the Partnership. Prior to the sale of the property, the Company
accounted for its interest in the Partnership under the equity method. Accordingly, through the date of sale in
fiscal 2001, the Company recorded $3,864,000 as its proportionate share of the income of the joint venture
including earnings from the sale of the property. The Company’s equity in earnings of the Partnership was
reflected after eliminating its proportionate share of dividend income in the Class A Common shares of the
Company recorded by the Partnership.

Upon the Partnership’s sale of the property, the Company effectively gained control of the Partnership and as a
result, the Partnership’s accounts, which included $1.2 million in notes issued by the purchaser of the property
and 1,200,000 shares of the Company’s Class A Common stock held by the Partnership, were thereafter consoli-
dated with the Company. Upon consolidation, the remaining 654,546 shares of Class A Common stock held by
the Partnership were deemed to be retired for accounting purposes. In December 2001, the Partnership was
liquidated.

Upon the consolidation of the Partnership, the 654,546 shares of Class A Common stock deemed retired
and the $1.2 million in notes issued by the purchaser and received by the Company represented noncash
activities and therefore are not included in the accompanying 2001 consolidated statement of cash flows.

(6) MORTGAGE NOTES RECEIVABLE

Mortgage notes receivable consist of fixed rate mortgages with contractual interest rates of 9% and 12%. The
components of the mortgage notes receivable at October 31, 2001 and 2000 were as follows (in thousands):

Remaining principal balance
Unamortized discounts to reflect market interest rates at time of acceptance of notes

2001

$ 3,986
(479)
$ 3,507

2000

$ 2,897
(518)
$ 2,379

At October 31, 2001, principal payments on mortgage notes receivable become due as follows: 2002 – $104,000;
2003 – $164,000; 2004 – $1,261,000; 2005 – $130,000; 2006 – $142,000 and thereafter – $2,185,000.

(7) MORTGAGE NOTES PAYABLE AND LINES OF CREDIT

At October 31, 2001, the Company has eight nonrecourse mortgage notes payable totaling $47,115,000
($40,034,000 at October 31, 2000) due in installments over various terms extending to the year 2011 and which
bear fixed rates of interest ranging from 6.24% to 8.13%. The mortgage notes payable are collateralized by real
estate investments having a net carrying value of approximately $73.0 million as of October 31, 2001.

Scheduled principal payments during the next five years and thereafter are as follows: 2002 – $860,000;
2003 – $928,000; 2004 – $1,000,000; 2005 – $1,078,000; 2006 – $6,110,000 and thereafter – $37,139,000.

URSTADT BIDDLE PROPERTIES INC.

The Company has a $20 million secured revolving credit loan agreement (the “Agreement”) with a bank. The
agreement which expires in October 2005 is secured by first mortgage liens on two properties. Interest on out-
standing borrowings is at a variable rate of prime +1/2% or LIBOR + 1.5%. The Company can elect a fixed rate
option at any time prior to the last year of the agreement. The agreement requires the Company to maintain
certain debt service coverage ratios during its term and provides for a permanent reduction in the revolving
credit loan amount of $625,000 annually. At October 31, 2001, the Company had no outstanding borrowings
under this revolving credit agreement ($11,869,000 at October 31, 2000).

The Company also has a $20 million unsecured line of credit arrangement with the same bank. The line of
credit expires in fiscal 2003 and, is available to acquire real estate, refinance indebtedness and for working
capital needs. Extensions of credit under the arrangement are at the bank’s discretion and subject to the bank’s
satisfaction of certain conditions. Outstanding borrowings bear interest at the prime rate plus +1/2% or LIBOR
+2 1/2%. The Company pays an annual fee of 1/4% on unused amounts. There were no borrowings outstand-
ing under this line of credit at October 31, 2001 and 2000.

Interest paid for the years ended October 31, 2001, 2000, and 1999 was $4,456,000 $4,245,000 and $4,038,000,
respectively.

(8) PREFERRED STOCK

In fiscal 1998 the Company sold 350,000 shares of 8.99% Series B Senior Cumulative Preferred Stock, par value
$.01 per share, with a liquidation preference of $100 per share (“Series B Preferred Stock”). Holders of the Series
B Preferred Stock are entitled to receive cumulative preferential cash dividends equal to 8.99% per annum,
payable quarterly in arrears and subject to adjustment under certain circumstances.

The Series B Preferred Stock has no stated maturity, will not be subject to any sinking fund or mandatory
redemption and will not be convertible into other securities or property of the Company. On or after January
8, 2008, the Series B Preferred Stock may be redeemed by the Company at its option, in whole or in part, at a
redemption price of $100 per share, plus all accrued dividends. Upon a Change in Control of the Company (as
defined), (i) each holder of Series B Preferred Stock shall have the right, at such holder’s option, to require the
Company to repurchase all or any part of such holder’s Series B Preferred Stock for cash at a repurchase price
of $100 per share, plus all accrued and unpaid dividends, and (ii) the Company shall have the right, at the
Company’s option, to redeem all or any part of the Series B Preferred Stock at (a) prior to January 8, 2008, the
Make-Whole Price (as defined) and (b) on or subsequent to January 8, 2008, the redemption price of $100 per
share, plus all accrued and unpaid dividends.

The Series B Preferred Stock contains covenants which require the Company to maintain certain financial cover-
ages relating to fixed charge and capitalization ratios. Shares of the Series B Preferred Stock are non-voting;
however, under certain circumstances (relating to non-payment of dividends or failure to comply with the finan-
cial covenants) the preferred stockholders will be entitled to elect two directors. The Company was in compli-
ance with such covenants at October 31, 2001 and 2000.

(9) STOCKHOLDERS’ EQUITY

On October 31, 2001 the Company completed a secondary offering of 4,800,000 shares of its Class A Common
stock in an underwritten public offering. The aggregate net proceeds to the Company (after deducting under-
writing fees and expenses) were $41,136,000. The Company also granted the underwriters an option, exercisable
for 30 days, to purchase up to 720,000 additional shares of Class A Common stock to cover over-allotments. On
November 26, 2001 the underwriters exercised an option for 699,222 shares that resulted in net proceeds to the
Company of $6,112,000.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(9) STOCKHOLDERS' EQUITY (continued)

In fiscal 2001, the Company also sold 200,000 shares of Common stock and 5,000 shares of Class A Common
stock for proceeds of $1,435,000 in a private placement offering with two entities controlled by an officer of the
Company.

In fiscal 1998, the Board of Directors declared and paid a special stock dividend on the Company’s Common
stock consisting of one share of a newly created class of Class A Common stock, par value $.01 per share for
each share of the Company’s Common stock. The Class A Common stock entitles the holder to 1/20 of one vote
per share. Each share of Common stock and Class A Common stock has identical rights with respect to divi-
dends except that each share of Class A Common stock will receive not less than 110% of the regular quarterly
dividends paid on each share of Common stock.

The Company has a Stockholders rights plan, which expires on November 12, 2008. The rights are not currently
exercisable. When they are exercisable, the holder will be entitled to purchase from the Company one one-hun-
dredth of a share of a newly-established Series A Participating Preferred Stock at a price of $65 per one one-
hundredth of a preferred share, subject to certain adjustments. The distribution date for the rights will occur 10
days after a person or group either acquires or obtains the right to acquire 10% (“Acquiring Person”) or more
of the combined voting power of the Company’s Common shares, or announces an offer the consummation
of which would result in such person or group owning 30% or more of the then outstanding Common Shares.
Thereafter, shareholders other than the Acquiring Person will be entitled to purchase original common shares of
the Company having a value equal to two times the exercise price of the right.

If the Company is involved in a merger or other business combination at any time after the rights become exer-
cisable, and the Company is not the surviving corporation or 50% or more of the Company assets are sold or
transferred, the rights agreement provides that the holder other than the Acquiring Person will be entitled to
purchase a number of shares of common stock of the acquiring company having a value equal to two times the
exercise price of each right.

The Company’s articles of incorporation provide that if any person acquires more than 7.5% of the outstanding
shares of any class of stock, except, among other reasons, as approved by the Board of Directors, such shares in
excess of this limit shall automatically be exchanged for an equal number of shares of Excess stock. Excess stock
have limited rights, may not be voted and are not entitled to any dividends.

The Company has a restricted stock plan which provides for the grant of restricted stock awards to key employ-
ees and directors of the Company. The plan allows for restricted stock awards of up to 350,000 shares each of
Common stock and Class A Common stock. As of October 31, 2001, the Company has awarded 239,625 shares of
Common stock and 142,875 shares of Class A Common stock to participants as an incentive for future services.
None of the shares awarded were vested at October 31, 2001. The shares vest after five years. Dividends on vest-
ed and non-vested shares are paid as declared. The market value of shares awarded has been recorded as
unamortized restricted stock compensation and is shown as a separate component of stockholders’ equity.
Unamortized restricted stock compensation is being amortized to expense over the five year vesting period. For
the years ended October 31, 2001, 2000 and 1999 amounts charged to expense totaled $769,000, $630,000 and
$488,000 respectively.

In 1996, the Company’s Board of Directors authorized a program to purchase up to 500,000 shares each of the
Company’s Common stock and Class A Common stock. As of October 31, 2001, the Company purchased and
retired a total of 224,500 Common shares and 214,100 Class A Common shares under this program.

(10) STOCK OPTION PLAN

The Company has a stock option plan, as amended, whereby 824,093 Common shares and 743,003 Class A
Common shares are reserved for issuance to key employees and non-employee Directors of the Company.
Options are granted at fair market value on the date of the grant, have a duration of ten years from the date of
grant and are generally exercisable in installments over a maximum period of four years from the date of grant.

URSTADT BIDDLE PROPERTIES INC.

A summary of stock option transactions during the periods covered by these financial statements is as follows:

Year ended October 31

2001

2000

1999

Common stock:

Balance at beginning

of period

Granted
Exercised
Canceled
Balance at end of period
Exercisable

Class A Common stock:

Balance at beginning

of period

Granted
Exercised
Canceled
Balance at end of period
Exercisable

Weighted average fair
value of options
granted during the year
– Common stock
– Class A Common stock

Weighted
Average
Exercise
Prices

$6.91
—
$6.83
$7.54
$7.00

$7.48
—
$7.38
$7.13
$7.50

Number
of Shares

739,958
—
(419,000)
(5,898)
315,060
222,060

739,464
—
(24,859)
(400,000)
314,605
221,605

Number
of Shares

736,843
593,000
—-
(589,885)
739,958
146,958

732,482
593,000
—-
(586,018)
739,464
146,464

—
—

$0.18
$0.12

Weighted
Average
Exercise
Prices

Number
of Shares

$7.04
$6.81
—-
$6.91
$6.91

$7.10
$7.13
—-
$6.96
$7.48

$7.09
$7.69
—-
$12.70
$7.04

$7.09
$8.18
—-
$12.79
$7.10

734,843
6,000
—-
(4,000)
736,843
698,597

730,482
6,000
—-
(4,000)
732,482
694,405

$0.55
$0.59

At October 31, 2001, exercise prices of Common shares and Class A Common shares under option ranged from
$6.29 to $9.03 for the Common shares and $6.33 to $9.09 for the Class A Common shares. Option expiration
dates range for both classes of stock from April 2002 through July 2010 and the weighted average remaining
contractual life of these options is 7.0 years.

As of October 31, 2001, options to acquire approximately 261,000 shares each of Common stock and Class A
Common stock held by certain officers and directors of the Company permit the optionee to elect to receive either
shares of Common stock or Class A Common stock or a combination of both. Upon an election to exercise shares
of a class of common stock by the optionee, a comparable number of shares of the class of common stock not elect-
ed by such optionee is deemed cancelled and no longer available for future grants.

The fair value of the Company’s stock options were estimated as of the date of grant using a Black-Scholes
option pricing model with the following weighted average assumptions for the years ended October 31, 2000
and 1999 (there were no grants in 2001):

Year ended October 31,

Risk-free interest rate
Expected dividend yields
Expected volatility
Weighted average option life

2000

6.17%
9.8%-10.9%
15.1%
10 Years

1999

5.65%
9.1%
23.6%
10 Years

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(10) STOCK OPTION PLAN (continued)

The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options
which have no vesting restrictions and are fully transferable. In addition, option valuation models require the
input of highly subjective assumptions, including the expected stock volatility. Because the Company’s stock
option plan has characteristics significantly different from those of traded options, and because changes in the
subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing
models do not necessarily provide a reliable single measure of the fair value of the above stock option plan.

The Company has adopted the disclosure-only provisions of Statement of Financial Accounting Standards No.
123, “Accounting for Stock Based Compensation” (“SFAS 123”). Accordingly, no compensation expense has been
recognized for the options described above. Had compensation cost for these options been determined based on
the fair value on the grant date consistent with the provisions of SFAS 123, the effect on the Company’s net
income and earnings per share in each of the three years ended October 31, 2001, 2000 and 1999 would have
been immaterial.

Certain officers of the Company have exercised stock options to purchase Common shares and Class A
Common shares of the Company and signed full recourse promissory notes which, at October 31, 2001, total
$3,270,000 ($267,000 at October 31, 2000). The notes are secured by the shares issued. The notes are for 10 year
terms and bear fixed interest at 2% over an applicable U.S. treasury note rate. Interest is payable quarterly. The
exercise of the stock options and the notes receivable from officers represent non-cash financing activities and
are therefore not included in the accompanying consolidated statements of cash flows. The notes are shown as a
reduction in stockholders equity as “Notes receivable from officers/stockholders”.

(11) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The unaudited quarterly results of operations for the years ended October 31, 2001 and 2000 are as follows (in
thousands, except per share data):

Year Ended October 31, 2001

Year Ended October 31, 2000

Quarter Ended

Jan 31 Apr 30

July 31 Oct 31

Jan 31 Apr 30

July 31 Oct 31

Revenues

$8,281

$8,702

$9,983

$9,127

$7,783

$7,682

$7,595

$7,949

Net Income (1)

$1,932

$2,276

$3,211

$6,268

$1,787

$3,067

$1,811

$1,924

Preferred Stock Dividends

786

787

786

787

Net Income Applicable to
Common and Class A
Common stockholders

Basic Earnings per Share:
Common
Class A Common

Diluted Earnings per Share:
Common
Class A Common

$1,146

$1,489

$2,424

$5,481

$1,001

$2,280

$1,024

$1,137

$.10
$.11

$.13
$.14

$.12
$.14

$.21
$.24

$.47
$.52

$.21
$.23

$.45
$.49

$.09
$.10

$.21
$.23

$.20
$.23

$.09
$.10

$.11
$.12

(1) Quarters ended October 31, 2001 and April 30, 2000 include gains on sales of real estate investments of $316,000 and $1,067,000 respec-
tively. In addition, the quarter ended October 31, 2001 includes $3,884,000 representing the Company’s proportionate share of the earn-
ings of its unconsolidated joint venture, a component of which is the earnings from the sale of its retail property on September 17, 2001.

URSTADT BIDDLE PROPERTIES INC.

(12) SEGMENT REPORTING

For financial reporting purposes, the Company has grouped its real estate investments into two segments:
equity investments and mortgage loans. Equity investments are managed separately from mortgage loans as
they require a different operating strategy and management approach. The Company assesses and measures
operating results for each of its segments, based on net operating income. For equity investments, net operating
income is calculated as rental revenues of the property less its rental expenses (such as common area expenses,
property taxes, insurance, etc.) and, for mortgage loans, net operating income consists of interest income less
direct expenses, if any.

The revenues, net operating income and assets for each of the reportable segments are summarized in the
following tables for the years ended October 31, 2001, 2000 and 1999. Non-segment assets include cash and
cash equivalents, interest receivable, and other assets. The non-segment revenues consist principally of interest
income on temporary investments. The accounting policies of the segments are the same as those described in
Note 1. (In thousands)

Year Ended October 31,

2001

Total Revenues
Net Operating Income
Total Assets

2000

Total Revenues
Net Operating Income
Total Assets

1999

Total Revenues
Net Operating Income
Total Assets

Equity
Investments

Mortgage

Loans

Non
Segment

$35,346
$23,412
$183,474

$ 30,242
$ 19,378
$176,461

$ 28,666
$ 18,814
$179,370

$302
$302
$3,507

$ 376
$ 376
$2,379

$ 302
$ 302
$2,500

$445
$445
$31,371

$ 391
$ 391
$1,952

$ 462
$ 462
$1,904

Total

$36,093
$24,159
$218,352

$ 31,009
$ 20,145
$180,792

$ 29,430
$ 19,578
$183,774

The reconciliation to net income for the combined reportable segments and for the Company is as follows:

Year Ended October 31,

2001

2000

1999

Net Operating Income from Reportable Segments

$24,159

$20,145

$19,578

Additions:

Equity in earnings of unconsolidated joint venture
Gains on sales of real estate investments

Total Additions

Deductions:

Interest expense
Depreciation and amortization
General, administrative and other expenses

Total Deductions

Net Income

Preferred stock dividends

Net Income Applicable to

3,864
316
4,180

4,456
7,568
2,628
14,652

13,687
(3,147)

245
1,067
1,312

4,245
6,307
2,316
12,868

8,589
(3,147)

384
1,364
1,748

3,913
5,896
2,327
12,136

9,190
(3,147)

Common and Class A Common Stockholders

$10,540

$5,442

$ 6,043

(13) SUBSEQUENT EVENTS AND COMMITMENT

During fiscal 2001, the Company obtained a mortgage loan from a commercial bank for $6 million secured by
five office properties in Greenwich, Connecticut. The bank made an initial disbursement of $4.8 million with
$1.2 million to be advanced. The $1.2 million, when advanced, will have a seven year term and bear interest at
a fixed rate of 2% over the U.S. treasury rate determined at the date of close.

In November 2001, the Company repurchased 200,000 shares of its outstanding 8.99 % Series B Cumulative
Preferred Stock for a purchase price of $16,050,000 in a negotiated transaction with the preferred stockholder.
The repurchased shares have a net carrying value of $19,121,000 at October 31, 2001.

In December 2001, the Company contracted to purchase a shopping center for $7,100,000.

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Stockholders of Urstadt Biddle Properties Inc.:

We have audited the accompanying consolidated balance sheets of Urstadt Biddle Properties Inc. and sub-
sidiaries (the “Company”), as of October 31, 2001 and 2000, and the related consolidated statements of
income, cash flows and stockholders’ equity for each of the three years in the period ended October 31, 2001.
These financial statements are the responsibility of the Company’s management. Our responsibility is to
express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Urstadt Biddle Properties Inc. and subsidiaries as of October 31, 2001 and 2000, and the results of
their operations and their cash flows for each of the three years in the period ended October 31, 2001 in con-
formity with accounting principles generally accepted in the United States.

ARTHUR ANDERSEN LLP

New York, New York
December 12, 2001

MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW
The following discussion should be read in conjunction
with the financial statements appearing elsewhere here-
in. The results of operations, liquidity and capital
resources and cash flows of the Company include the
historical results of operations of the Company during
the years ended October 31, 2001, 2000 and 1999. This
Annual Report contains forward-looking statements for
purposes of the Securities Act of 1933 and the Securities
Exchange Act of 1934 and as such may involve known
and unknown risks, uncertainties and other factors that
may cause the actual results, performance or achieve-
ments of the Company to be materially different from
future results, performance or achievements expressed
or implied by such forward-looking statements.
Although the Company believes that the expectations
reflected in such forward-looking statements are based
upon reasonable assumptions, there can be no assurance
that these expectations will be realized.

LIQUIDITY AND CAPITAL
RESOURCES
The Company’s liquidity and capital resources include
its cash and cash equivalents, proceeds from bank bor-
rowings and long-term mortgage debt, capital financ-
ings and sales of real estate investments. The Company
expects to meet its short-term liquidity requirements pri-
marily by generating net cash from the operations of its
properties. Payments of expenses related to real estate
operations, debt service, management and professional
fees, and dividend requirements place demands on the
Company’s short-term liquidity. The Company believes
that its net cash provided by operations is sufficient to
fund its short-term liquidity requirements for fiscal 2002.
The Company expects to fund its long-term liquidity
requirements such as property acquisitions, repayment
of indebtedness and capital expenditures through other
long-term indebtedness (including indebtedness
assumed in acquisitions), proceeds from sales of non-
core properties and/or the issuance of equity securities.
At October 31, 2001, the Company had cash and
cash equivalents of $34.1 million compared to $1.9 mil-
lion in 2000. The Company also has a $20 million
secured revolving credit facility with a bank which
expires in fiscal 2005 and a conditional $20 million unse-
cured revolving line of credit with the same bank which
expires in fiscal 2003. The revolving credit lines are
available to finance the acquisition, management and/or

development of commercial real estate, refinance indebt-
edness and for working capital purposes. Extensions of
credit under the unsecured credit line are at the bank’s
discretion and subject to the bank’s satisfaction of cer-
tain conditions. In fiscal 2001, the Company utilized bor-
rowings totaling $16.5 million from the revolving credit
lines to repay mortgage indebtedness, finance property
acquisitions and to fund tenant lease obligations.

At October 31, 2001, long-term debt consists of
mortgage notes payable totaling $47.1 million. In fiscal
2001, the Company repaid $6 million in mortgage
indebtedness which matured and obtained $11.0 million
in new mortgage loans (of which $9.8 million has been
advanced). The new loans have seven and ten year
terms with interest at fixed rates ranging from 6.24% to
7.25%. Proceeds from the mortgage loans were used to
repay a portion of the outstanding revolving credit line
indebtedness.

In fiscal 2001, the Company completed a secondary
offering of 4,800,000 shares of its Class A Common stock
in an underwritten public offering. The aggregate net
proceeds to the Company (after deducting underwriting
fees and expenses) were $41.1 million. The Company
also granted the underwriters an option, exercisable for
30 days, to purchase up to 720,000 additional shares of
Class A Common Stock to cover over-allotments. On
November 26, 2001 the underwriters exercised an option
for 699,222 shares which resulted in net proceeds to the
Company of $6.1 million. The Company intends to use
the proceeds of this offering for acquisitions of proper-
ties, capital improvements (including tenant improve-
ments) and debt repayment.

The Company also sold 200,000 shares of Common

stock and 5,000 shares of Class A Common stock in a
private placement offering for proceeds of $1,435,000.
In 1996, the Company’s Board of Directors autho-

rized the purchase of 500,000 shares each of the
Company’s Common stock and Class A Common stock.
The Company may postpone or discontinue repurchases
of its shares for any reason including prevailing market
conditions, availability of cash resources or alternative
investment opportunities. To date, the Company has
repurchased 224,500 Common shares and 214,100 Class
A Common shares under this program. The Company
expects to fund the cost of future share purchases, if any,
from available cash.

In November 2001, the Company repurchased

200,000 shares of its outstanding 8.99% Series B
Cumulative Preferred Stock for a purchase price of

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

$16,050,000. The repurchase was effected in a negotiated
transaction with the preferred stockholder. A portion of
the proceeds received from the sale of Class A Common
Stock was utilized to repurchase these shares.

The Company expects to make real estate invest-
ments periodically. In fiscal 2001, the Company acquired
two properties for $9.8 million. One property was
acquired subject to a first mortgage loan of $4.2 million.
The loan has a remaining term of six years and fixed
interest of 7.83%. The purchases were financed from
available cash and borrowings under the Company’s
revolving credit lines. After year end, the Company
signed a contract to acquire a shopping center for $7.1
million subject to a first mortgage loan of $2.3 million.
The Company also invests in its existing properties and
in fiscal 2001, spent approximately $11.7 million for capi-
tal expenditures including $8.3 million related to tenant
improvements and allowances in connection with the
Company’s leasing activities. The Company expects to
spend an additional $3.2 million to complete its known
capital improvement and leasing costs over the next
year.

In a prior year, the Company’s Board of Directors

expanded and refined the strategic objectives of the
Company to refocus its real estate portfolio into one of
self-managed retail properties located in the Northeast
and authorized a plan to sell the non-core properties of
the Company in the normal course of business over a
period of several years. In fiscal 2001, the Company sold
two non-core properties for aggregate proceeds of $1.2
million realizing net gains on the sales of $316,000. An
unconsolidated joint venture in which the Company is
the general partner sold a shopping center that it
owned. Upon the sale of the property, the Company
effectively gained control of the Partnership and, as a
result, the Partnership’s accounts which included $1.2
million in notes and 1.2 million shares of the Company’s
Class A Common stock held by the joint venture were
thereafter consolidated with the Company. Upon consol-
idation, the shares were retired by the Company. The
Company intends to sell the remaining non-core proper-
ties as opportunities become available and expects such
property sales to result in net gains to the Company. At
October 31, 2001, the non-core properties consist of two
distribution and service facilities, one office building
and one retail property (all of which are located outside
of the Northeast region of the United States).

FUNDS FROM OPERATIONS
The Company considers Funds from Operations
(“FFO”) to be one supplemental financial measure of an
equity REIT’s operating performance. FFO is calculated
as net income (computed in accordance with generally
accepted accounting principles (GAAP), plus deprecia-
tion and amortization, excluding gains (or losses) from
sales of property, and after adjustments for unconsoli-
dated joint ventures. The Company considers recoveries
of investments in properties subject to finance leases to
be analogous to amortization for purposes of calculating
FFO. FFO does not represent cash flows from operations
as defined by GAAP and should not be considered an
alternative to net income as an indication of the
Company’s operating performance or for cash flows as a
measure of liquidity or its dividend paying capacity.
Furthermore, FFO as disclosed by other REITs may not
be comparable to the Company’s calculation of FFO.
The table below provides a reconciliation of net income
in accordance with GAAP to FFO for each of the years
ended October 31, 2001, 2000 and 1999 (amounts in
thousands).

2001

2000

1999

Net Income Applicable to
Common and Class A
Common Stockholders

Plus: Real property

depreciation

$10,540

$5,442

$6,043

4,463

4,571

4,114

Amortization of
tenant improvements
and allowances

Amortization of
deferred leasing costs

Recoveries of
investments in
properties subject
to finance leases

Adjustments for
unconsolidated
joint venture

Less: Gains on sales of
real estate
investments

2,234

1,067

851

545

956

585

822

890

(3,252)

534

654

(316)

(1,067) (1,364)

Funds from Operations

$14,611

$11,914

$11,878

RESULTS OF OPERATIONS

Fiscal 2001 vs. Fiscal 2000

Revenues

Revenues from operating leases increased 13.1% to $34.2
million in fiscal 2001 compared to $30.2 million in fiscal
2000. Overall, property occupancy levels increased to
98% from 97% last year. The increase in operating lease
revenues results from leasing of vacant space, higher
tenant base rent renewal rates at certain of the
Company’s properties and higher recoveries of property
operating, real estate tax and other recoverable costs.
Three of the Company’s properties were accounted for
as direct finance leases in accordance with generally
accepted accounting principles. In fiscal 2001, one of the
properties accounted for as a direct finance lease was
sold and the leases of the remaining two properties
expired and were relet. The re-negotiated leases were
classified as operating leases and resulted in an increase
of operating rents of $682,000.

The lease termination income of $1.137 million, net

of expenses, represents a settlement in satisfaction of the
Company’s claims against a former tenant arising from
the tenant’s bankruptcy and rejection of its lease at one
of the Company’s properties.

Prior to September 2001, the Company had an
investment in an unconsolidated joint venture that
owned a shopping center in Clearwater, Florida which
was accounted for under the equity method. In
September 2001, the property was sold for $16 million.
Through the date of sale, the Company recorded
$3,864,000 as its proportionate share of the earnings
from the sale of the property and income of the joint
venture. Upon the sale of the property, the Company
effectively gained control of the joint venture and, as a
result, the joint venture’s accounts which included $1.2
million in mortgage notes and 1.2 million shares of the
Company’s Class A Common shares that the joint ven-
ture owned were thereafter consolidated. Upon consoli-
dation, the Class A Common shares were deemed
retired by the Company. (See Note 5 to financial state-
ments)

In 2001, the Company sold two non-core properties

for net gains of $316,000.

Expenses

Total expenses amounted to $26.2 million in fiscal 2001
compared to $23.3 million last year. Property expenses
increased principally from higher snow removal costs
and property taxes during the year. Snow removal costs
and property taxes increased $686,000 in fiscal 2001 due
to higher amounts of snowfall during the period and

increased real estate tax assessments at certain of the
Company’s core properties.

Interest expense increased from additional borrow-
ings of $16.5 million on the Company’s revolving credit
lines in fiscal 2001. The increase in interest expense was
partially offset by higher interest rate mortgage loans
that were repaid during the year.

Depreciation and amortization expense increased to

$7.6 million from $6.3 million from the expenditure of
$11.7 million for property improvements, tenant
allowances and deferred leasing costs in fiscal 2001. The
Company also wrote off $287,000 for unamortized ten-
ant allowances related to tenants who vacated space
during the year.

FISCAL 2000 VS. FISCAL 1999

Revenues

Revenues from operating leases increased 5.2% to $30.2
million in fiscal 2000 compared to $28.7 million in fiscal
1999. The increase in revenues include $1.8 million of
additional income from recent properties acquired. The
increase in operating lease revenues was partially offset
from the absence of approximately $700,000 in rents
from tenants who filed for bankruptcy and whose leases
were rejected. The Company subsequently re-let the
vacant spaces.

The Company sold two non-core properties for net

gains on the sales of $1,067,000.

Expenses

Total expenses amounted to $23.3 million in fiscal 2000
compared to $21.6 million in fiscal 1999. The largest
expense category is property expenses of the real estate
operating properties. The increases in property expens-
es in fiscal 2000 result principally from the additional
property expenses for properties acquired during fiscal
1999, which increased property expenses by $669,000.

Property expenses for all other properties increased

by 3.3% from higher repair and maintenance expenses
and real estate taxes at certain of the Company’s core
properties. Repairs and maintenance expenses increased
$70,000 from paving repairs at certain of the Company’s
shopping center parking lots, increased painting expens-
es and exterior facade and building work.

Interest expense increased as a result of a full year’s
interest expense on incremental borrowings of $18.3 mil-
lion in fiscal 1999.

Depreciation and amortization expense increased

principally from the write off of unamortized tenant
improvement costs and other allowances for tenants that
vacated during the year. These costs amounted to
$280,000 in fiscal 2000.

TAX STATUS

The Company has elected to be treated as a real estate investment trust under the Internal Revenue Code.
Thus, generally it will be subject to Federal income taxes only on that part of its taxable income not distributed
as dividends so long as 95% of such taxable income is distributed (90% for tax years beginning after December
31, 2000). The Company intends to distribute all of its taxable income for fiscal 2001 and, accordingly, no pro-
vision has been made for Federal income taxes.

INCOME TAX INFORMATION

Dividends paid by the Company during fiscal 2001 were all considered ordinary income for Federal income tax
purposes and were paid as follows:

Dividend
Payment Date

January 21, 2001
April 21, 2001
July 21, 2001
October 19, 2001

Total

Dividends Paid Per

Common Share

Class A
Common Share

$ .18
$ .18
$ .18
$ .18

$ .72

$ .20
$ .20
$ .20
$ .20

$ .80

MARKET PRICE RANGES

The following sets forth, for the fiscal years ended October 31, 2001 and 2000, the low and high closing
sales price per Common Share and Class A Common Share as quoted on The New York Stock Exchange.

Shares trade on the New York Stock Exchange under the Symbols: UBP and UBP.A.

Fiscal 2001

Low High

$6.354 – $7.274
$6.987 – $7.848
$7.638 – $8.660
$8.020 – $8.930

$6.385 – $7.641
$7.354 – $8.543
$8.123 – $9.277
$8.550 – $9.750

Fiscal 2000

Low High

$6.75 – $7.438
$6.75 – $7.375
$6.75 – $7.313
$6.75 – $7.188

$7.125 – $7.688
$7.250 – $7.688
$6.750 – $7.563
$7.125 – $7.563

Common Shares

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

Class A Common Shares

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

URSTADT BIDDLE PROPERTIES INC.

DIRECTORS
CHARLES J. URSTADT
Chairman, Urstadt Biddle Properties Inc.

ROBERT R. DOUGLASS
Vice Chairman, Urstadt Biddle Properties Inc.
Of Counsel, Milbank, Tweed, Hadley and McCloy

WILLING L. BIDDLE
President, Urstadt Biddle Properties Inc.

E. VIRGIL CONWAY
Retired Chairman, New York State Metropolitan
Transportation Authority

PETER HERRICK
Retired Vice Chairman, The Bank of New York

GEORGE H.C. LAWRENCE
Chairman and Chief Executive Officer
Lawrence Properties

CHARLES D. URSTADT
President, Urstadt Property Co, Inc.

GEORGE J. VOJTA
Retired Vice Chairman
Bankers Trust Company

Directors Emeriti
GEORGE T. CONKLIN, JR.
GEORGE M. HUBBARD, JR.
JAMES O. YORK

Officers
CHARLES J. URSTADT
Chairman and Chief Executive Officer

WILLING L. BIDDLE
President and Chief Operating Officer

JAMES R. MOORE
Executive Vice President, Chief Financial Officer
and Treasurer

RAYMOND P. ARGILA
Senior Vice President, Legal and Assistant Secretary

THOMAS D. MYERS
Vice President and Secretary

JOHN C. MERRITT
Vice President, Acquisitions

LINDA L. LACEY
Vice President, Leasing

JAMES M. ARIES
Vice President, Acquisitions and Leasing

JOSEPH V. LoPARRINO
Vice President, Controller

WAYNE W. WIRTH
Vice President, Construction

HEIDI R. BRAMANTE
Assistant Vice President and Assistant Controller

Securities Traded
New York Stock Exchange
Symbols: UBP.A and UBP
Stockholders of Record as of January 7, 2002:
Common Stock: 1,541 and Class A Common Stock: 1,564

Annual Meeting
The annual meeting of stockholders will be held
at 11:00 A.M. March 13, 2002 at The Hyatt Regency
Greenwich, Old Greenwich, Connecticut.

Form 10-K
A copy of the Company’s 2001 Annual Report on
Form 10-K filed with the Securities and Exchange
Commission may be obtained by stockholders
without charge by writing to the Secretary of the
Company at its executive office.

Shareholder Information and Dividend
Reinvestment Plan
Inquiries regarding stock ownership, dividends or
the transfer of shares can be addressed to our Transfer
Agent, The Bank of New York, Shareholder Relations
Department–11E, P.O. Box 11258, Church Street
Station, New York, NY 10286-1258 or call toll-free at
1-800-524-4458. The Company has a dividend reinvest-
ment plan which provides stockholders with a con-
venient means of increasing their holdings without
incurring commissions or fees. For information about
the plan, stockholders should contact the Transfer
Agent. Other shareholder inquiries should be directed
to Thomas D. Myers, Secretary, telephone
(203)-863-8200.

Investor Relations
Investors desiring information about the Company
can contact James R. Moore, Executive Vice President,
telephone (203) 863-8200. Investors are also encouraged
to visit our web site at: www.ubproperties.com

Auditors
Arthur Andersen LLP

General Counsel
Coudert Brothers

Executive Office of the Company
321 Railroad Avenue
Greenwich, CT 06830
Tel: (203) 863-8200
Fax: (203) 861-6755
Website: www.ubproperties.com

Memberships
National Association of Real Estate Investment Trusts, Inc.
(NAREIT)
International Council of Shopping Centers (ICSC)

Danbury Square
Danbury, Connecticut

Goodwives Shopping Center,
Darien, Connecticut

Towne Centre Shopping Center
Somers, New York

Townline Square,
Meriden, Connecticut

URSTADT BIDDLE
PR O P E R T I E S I N C .

321 RAILROAD AVENUE
GREENWICH, CONNECTICUT 06830