Urstadt Biddle Properties Inc. Annual Report 2007

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FY2007 Annual Report · Urstadt Biddle Properties Inc.

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2007 ANNUAL REPORT

STOCK PRICES ARE ONLY OPINIONS — BUT DIVIDENDS ARE FACTS

38 Consecutive Years of Uninterrupted Dividends
14 Consecutive Years of Increased Dividends

(In Millions) Except Dividends

Revenues

Funds From Operations

Dividends Per Share

$90

$80

$70

$60

$50

$40

$30

$20

$10

’98

’99

’00

’01

’02

’03

’04

’05

’06

’07

Ridgeway Shopping Center, Stamford, CT

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

Urstadt Biddle Properties Inc. is a self-administered publicly

held real estate investment trust providing investors with a

means of participating in the ownership of income-producing

properties. Our core properties consist of neighborhood and

community shopping centers in the suburban areas of the

northeastern United States with a primary concentration

in Fairfield County, Connecticut, Westchester and Putnam

Counties, New York and Bergen County, New Jersey.

Non-core assets consist of two industrial properties.

Class A Common Shares, Common Shares, Series C Preferred

Shares and Series D Preferred Shares of the Company trade
on the New York Stock Exchange under the symbols “UBA,”
“UBP,” “UBPPRC” and “UBPPRD.”

2007 ANNUAL REPORT CONTENTS

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

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

Map of Core Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Investment Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Directors and Officers . . . . . . . . . . . . . . .Back Cover

SELECTED FINANCIAL DATA
(In thousands, except per share data)

Year Ended October 31,

2007

2006

2005

2004

2003

Balance Sheet Data:
Total Assets
Mortgage Notes Payable
Redeemable Preferred Stock

Operating Data:
Total Revenues
Total Expenses and Minority Interest
Income from Continuing Operations
before Discontinued Operations

Per Share Data:
Net Income from Continuing

Operations—Basic:

Class A Common Stock
Common Stock

Net Income from Continuing

Operations—Diluted:

Class A Common Stock
Common Stock
Cash Dividends on:

Class A Common Stock
Common Stock

Total Dividends

Other Data:
Net Cash Flow Provided by (Used in):

Operating Activities
Investing Activities
Financing Activities

Funds from Operations (Note)
Cash Dividends (as a percentage
of Funds from Operations)

$471,770
$ 96,282
$ 52,747

$451,350
$104,341
$ 52,747

$464,439
$ 111,786
$ 52,747

$394,917
$107,443
$ 52,747

$392,639
$104,588
$ 52,747

$ 81,880
$ 49,630

$ 72,302
$ 48,708

$ 68,371
$ 46,134

$ 60,650
$ 39,729

$ 55,060
$ 37,357

$ 32,751

$ 24,544

$ 22,968

$ 21,408

$ 18,226

$ .95
$ .86

$ .93
$ .83

$ .92
$ .83
$1.75

$ .63
$ .56

$ .61
$ .55

$ .90
$ .81
$1.71

$ .66
$ .60

$ .64
$ .58

$ .88
$ .80
$1.68

$ .69
$ .63

$ .68
$ .62

$ .86
$ .78
$1.64

$ .63
$ .57

$ .84
$ .76
$1.60

$ 49,307
$ (19,457)
$ (28,432)

$ 35,429
$ (20,129)
$ (38,994)

$ 35,505
$ (61,348)
$ 26,397

$ 30,744
$ (2,416)
$ (24,837)

$ 31,176
$ (69,818)
$ 14,749

$ 37,062

$ 28,848

$ 29,355

$ 29,813

$ 27,964

64%

80%

76%

72%

74%

Note: The Company has adopted the definition of Funds from Operations (FFO) suggested by the National Association of Real Estate Investment Trusts (NAREIT) and defines FFO as net
income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from sales of properties plus real estate related depreciation and amortization and
after adjustments for unconsolidated joint ventures. For a reconciliation of net income and FFO, see Management’s Discussion and Analysis on page 27. FFO does not represent cash flows
from operating activities in accordance with generally accepted accounting principles and should not be considered an alternative to net income as an indicator of the Company’s operating
performance. The Company considers FFO a meaningful, additional measure of operating performance because it primarily excludes the assumption that the value of its real estate assets
diminishes predictably over time and industry analysts have accepted it as a performance measure. FFO is presented to assist investors in analyzing the performance of the Company. It is
helpful as it excludes various items included in net income that are not indicative of the Company’s operating performance. However, comparison of the Company’s presentation of FFO,
using the NAREIT definition, to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by
such REITs. For a further discussion of FFO, see Management’s Discussion and Analysis on page 27.

Total Revenues
(In thousands)

Funds From Operations
(In thousands)

*
0
8
8
,
1
8
$

2
0
3
,
2
7
$

1
7
3
,
8
6
$

0
5
6
,
0
6
$

0
6
0
,
5
5
$

*
2
6
0
,
7
3
$

3
1
8
,
9
2
$

5
5
3
,
9
2
$

8
4
8
,
8
2
$

4
6
9
,
7
2
$

Combined Dividends
Paid on Common and
Class A Common Shares
(Per share)

0
6
.
1
$

4
6
.
1
$

8
6
.
1
$

1
7
.
1
$

5
7
.
1
$

’03

’04

’05

’06

’07

’03

’04

’05

’06

’07

’03

’04

’05

’06

’07

*Includes $6 million settlement of lease guarantee obligation.

LETTER TO OUR STOCKHOLDERS

In last year’s annual report, we stated that we were

optimistic that 2006 would “provide a springboard for

a stronger performance in 2007.” Well, we are proud to
report that 2007 was a solid year for the Company. All of
our financial and operations performance measurements
rose. Funds from Operations (before a lease guarantee
settlement payment of $6 million) increased nearly 8% on
a per share basis. Our total revenues increased by nearly
5% to an all-time high of $75.9 million (excluding the
payment of $6 million) from $72.3 million last year. We
were able to keep our overhead expenses flat compared
to the prior year and control the extraordinary costs
placed on small companies necessary to comply with the
Sarbanes-Oxley law. We are exploring several financing
alternatives and are working with two major commercial
banks to arrange a $50 million unsecured credit facility
that will provide the Company with adequate financing
to carry out its strategic goals for 2008.

have been driven to extraordinary levels over
the past few years but we are beginning to sense that
sellers are becoming more realistic in their valuation.

We acquired two shopping centers this year. Emerson
Plaza is a 92,000 square foot shopping center located in
Emerson, New Jersey, a suburban community in affluent
Bergen County, anchored by a very successful 50,000
square foot ShopRite Supermarket. We are planning a
renovation of this property and are working with the
supermarket to facilitate an expansion and renovation
of its store. We believe a renovation of the property will
enable us to increase rents at the property over the long
term as the majority of the in-line tenants have limited
remaining terms on their leases. The second property,
Starbucks Plaza, is a 10,100 square foot convenience
shopping center, anchored by a Starbucks retail store,
situated on a busy street in Monroe, a suburban

We leased or renewed 553,000
square feet of space (17% of our
core portfolio of properties). We
completed a number of new anchor
tenant leases that will further
strengthen our excellent portfolio
of quality shopping centers and, in
spite of a very challenging property
acquisitions market, we were able
to advance our strategic goal to
acquire properties in our target area.
We also continued our strategic plan
to sell our remaining non-core
properties over the next several
years. This year we sold our Tempe,
Arizona property for a gain of
$11.4 million.

Property Acquisitions

The sub-prime credit issues facing
many financial institutions and, to a
lesser extent, some commercial real
estate markets have not had much
effect on our property performance.
While the tightening of credit
standards has removed a few of the
buyers who compete with us to buy
properties, the demand for quality
shopping centers in our market
remains very high. Property prices

Emerson Plaza in Emerson, Bergen County, New Jersey

Starbucks Plaza in Monroe, a suburban community in Fairfield County, Connecticut

community in Fairfield County,
Connecticut. We also purchased the
limited partner interests we did not
already own in The Shoppes at
Eastchester in Eastchester, New York
and now own 100% of the property.
We also acquired a 20% economic
interest in a partnership that owns a
retail/office property in Bronxville,
New York, an affluent community in
Westchester County, New York.

We are working on a number of

acquisitions and are optimistic
about our momentum going into
2008. Shortly after year end, we
acquired a single tenant property
net leased to Rite Aid, a national
chain of pharmacy stores. We plan
to renovate and reconfigure this
property. We are also in contract to
purchase two vacant former Chase
Manhattan bank branches in high
income areas of Westchester County.

We will continue to remain

disciplined in our property
acquisitions and expect to buy
properties that over the long term
will contribute positively to the
cash flow and net asset value of
the Company.

Newly completed BJ’s Wholesale Club at The Dock Shopping Center in Stratford, Connecticut

Rite Aid Center, Waldwick, New Jersey

Leasing and Operations

This year, our rental revenues (before the lease guarantee

settlement payment) increased 5% over last year. The
increase reflects favorable leasing results, increased rental
rates on new leases and renewals and the effect of recent
property acquisitions. In 2007, we achieved an average
increase of nearly 11% on new leases signed over the
previous rental rates and a 13% average increase in rental
rates on renewal leases. Throughout the year, the leased
portion of our core portfolio remained at a stable rate at
96%; however, we increased the occupancy percentage of
the core portfolio by two percentage points to a nearly
full 95%, as tenants took occupancy of previously vacant
spaces. Entering 2007, our single largest vacancy was at
The Dock Shopping Center in Stratford, Connecticut
where 107,000 square feet leased to the former Bradlees’
department store remained vacant. During the year, we

reached agreement with Bradlees’ former parent company
to terminate its guarantee on the Bradlees’ lease in
exchange for a $6 million payment. Simultaneously, we
executed a new lease with BJ’s Wholesale Club for the
construction of a new 107,000 square foot store. We are
pleased to announced that BJ’s opened its new facility at
The Dock in January, 2008. Early indications are the store
will be a great success, and this new anchor tenant will
help us in leasing the remaining vacancies and complete
the redevelopment of the center.

During the year, we refinanced the $53 million
mortgage loan on our Ridgeway Shopping Center in
Stamford, Connecticut at a favorable rate of 5.52% fixed
for ten years. We expect annual interest savings from this
refinancing of nearly $1 million commencing this year.

LL Bean, a regional chain of

retail stores specializing in outdoor
products, had a very successful
opening of its 13,000 square foot
outlet store at our Orange Meadows
shopping center in October 2007.
We are optimistic that this high
quality tenant will create greater
opportunities to lease remaining
vacant space in the property to other
high quality retailers. Our location is
one of only three LL Bean store
locations in the State of Connecticut.
ShopRite Supermarket completed
its expansion and renovation of its
store at our Carmel ShopRite Center
in Carmel, New York this year. We
expect the increased draw from this
new store will assist us in leasing
remaining vacancies at this property.
Retailers and their businesses are
not immune to the effect of changes in
economic conditions that may cause
them to suffer financial problems.
With more than 500 tenants, we are
vulnerable to changing economic
conditions as well. However, our
tenant roster is diverse and we believe that we are not
exposed to any one tenant that may adversely affect our
business in the long term. In 2007, several of our tenants,
including Bombay furniture and Hancock Fabrics, filed for
bankruptcy protection and closed their respective stores at
our properties. Fortunately, these tenants impacted only
one location each. KB Toys filed for bankruptcy several
years ago, continues to struggle, and expects to close two
stores in our portfolio this coming year.

New second floor addition, under construction at Westchester Pavilion in White Plains, New York

LL Bean, opened at our Orange Meadows shopping center

At the Arcadian Shopping Center in Ossining, New
York, our anchor tenant, Stop & Shop, is in the process
of constructing at their expense a new 65,000 square foot
supermarket which they expect to occupy in the Fall of
2008. Last year, we renegotiated Stop & Shop’s lease at
higher rental rates during the new 20-year term on
greater leasable area. Also, we are close to signing a lease
for and commencing construction of an approved
restaurant building at the property.

At the Westchester Pavilion in White Plains, we
signed a lease with the Westchester County Board of
Realtors (WCBR) and are in the process of constructing
a new 16,000 square foot second level on the property
for WCBR’s new facility. We expect to generate
significant cash flow from the lease of this previously
vacant portion of the property when the tenant takes
occupancy. Occupancy is expected this summer.

Newly renovated and expanded Carmel ShopRite Supermarket in Carmel, New York

Outlook

In December 2007, your Board of Directors increased
the annualized dividend rate on both the Common Stock
and the Class A Common Stock by 3 cents per share. Last
year the annual dividend increases were 2 cents per share
for each class of stock. The 2008 increases in the dividend
rates represent the 14th consecutive year that your Board
of Directors has approved increases in the dividend rates.
We are also proud of an unbroken string of 38 consecutive
years of dividends paid since our founding and listing on
the New York Stock Exchange in 1969. The Board’s
decision to increase the dividend rates this year reflects
their optimism for the future prospects of the Company
and the results of our financial performance in 2007.

We are very proud of our highly capable staff and our
supportive Board of Directors. We thank them and you
our shareholders for continued support.

Sincerely yours,

Willing L. Biddle
President and
Chief Operating Officer

Charles J. Urstadt
Chairman and
Chief Executive Officer

January 15, 2008

The Board of Directors of Urstadt Biddle Properties Inc.

Top row left to right:
Willing L. Biddle
George J. Vojta
Robert J. Mueller
Charles D. Urstadt

Bottom row left to right:
George H.C. Lawrence
E. Virgil Conway
Charles J. Urstadt
Robert R. Douglass
Peter Herrick

Staples Plaza
Yorktown Heights, New York

Towne Centre Shopping Center
Somers, New York

Carmel ShopRite Center
Carmel, New York

Arcadian Shopping Center
Ossining, New York

Chilmark Shopping Center
Briarcliff Manor, New York

4 “Street Retail” Properties
Rye, New York

Selected Core Properties

N E W

Y O R K

Emerson Shopping Plaza
Emerson, New Jersey

N E W
J E R S E Y

L O N G

Valley Ridge Shopping Center
Wayne, New Jersey

Shoppes at Eastchester
Eastchester, New York

72nd & Main Street Shops
Queens, New York

Westchester Pavilion
White Plains, New York

Danbury Square
Danbury, Connecticut

Five Town Plaza
Springfield, Massachusetts

Starbucks Center
Monroe, Connecticut

MA S S A C H U S E T T S

CO N N E C T I C U T

S L A N D

Townline Square
Meriden, Connecticut

Orange Meadows Shopping Center
Orange, Connecticut

The Dock
Stratford, Connecticut

Airport Plaza
Danbury, Connecticut

Greens Farms Plaza
Westport, Connecticut

Urstadt Biddle Properties Corporate Headquarters
Greenwich, Connecticut

Ridgeway Shopping Center
Stamford, Connecticut

Ridgefield Center
Ridgefield, Connecticut

INVESTMENT PORTFOLIO
(As of January 15, 2008)

URSTADT BIDDLE PROPERTIES INC.

CORE PROPERTIES

UBP owns or has interests in thirty-two retail properties and five office buildings which total 3,265,000 square feet.

Location

Square Feet

Principal Tenants

Property Type

Stamford, Connecticut
Springfield, Massachusetts
Meriden, Connecticut
Stratford, Connecticut
Yorktown, New York
Danbury, Connecticut
White Plains, New York
Ossining, New York
Somers, New York
Carmel, New York
Wayne, New Jersey
Newington, New Hampshire
Darien, Connecticut
Emerson, New Jersey
Somers, New York
Orange, Connecticut
Eastchester, New York
Ridgefield, Connecticut
Rye, New York
Westport, Connecticut
Briarcliff Manor, New York
Danbury, Connecticut
Ossining, New York
Pelham Manor, New York
Queens, New York
Waldwick, New Jersey(1)
Somers, New York
Monroe, Connecticut
Greenwich, Connecticut

(1)Acquired November 2007

369,000
326,000
316,000
269,000
200,000
194,000
185,000
137,000
135,000
129,000
102,000
102,000
95,000
92,000
78,000
78,000
70,000
51,000
40,000
39,000
38,000
33,000
29,000
26,000
24,000
20,000
19,000
10,000
59,000

Stop & Shop, Bed Bath & Beyond
Big Y, Burlington Coat, Best Fitness
ShopRite, Old Navy, Linens ‘n Things
BJ’s Wholesale Club, Stop & Shop, Staples
Staples, Bed Bath & Beyond
Barnes & Noble, Christmas Tree Shops
Toys “ ” Us, The Sports Authority
Stop & Shop, Mandees
Home Goods, New York Sports Club
ShopRite, Rite Aid
A&P, PNC Bank
Linens ‘n Things, Outback Restaurant
Shaw’s Supermarket
ShopRite
CVS, US Post Office
Trader Joe’s, LL Bean
Food Emporium
Chico’s
Cosi
Pier One Imports
Dress Barn, Radio Shack
Fortunoff, Sleepy’s
Westchester Community College
Gristede’s Supermarket
Zaravshan, Huntington Dental
Rite Aid
Putnam County Savings Bank
Starbucks
Tutor Time,
Urstadt Biddle Properties
(Executive Offices)

Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Street retail
Street retail (4 buildings)
Shopping center
Shopping center
Shopping center
Shopping center
Shopping center
Street retail (2 buildings)
Retail—Single tenant
Shopping center
Shopping center
5 Office buildings

NON-CORE PROPERTIES
UBP owns two industrial properties with a total of 447,000 square feet.

Location

Square Feet

Principal Tenant

Property Type

Dallas, Texas
St. Louis, Missouri

255,000
192,000

DaimlerChrysler
DaimlerChrysler

Parts distribution facility
Parts distribution facility

URSTADT BIDDLE PROPERTIES INC.

FINANCIALS

CONTENTS

Consolidated Balance Sheets at October 31, 2007 and 2006 . . . . . . . . . . . . . . . 10

Consolidated Statements of Income for each of the

three years in the period ended October 31, 2007 . . . . . . . . . . . . . . . . . . . . . . . . 11

Consolidated Statements of Cash Flows for each of the

three years in the period ended October 31, 2007 . . . . . . . . . . . . . . . . . . . . . . . . 12

Consolidated Statements of Stockholders’ Equity

for each of the three years in the period
ended October 31, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . . 25

Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . . 26

Management’s Discussion and Analysis of Financial

Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Management’s Report on Internal Control

over Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . . 38

Tax Status and Market Price Ranges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Performance Graph and Certifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

ASSETS

Real Estate Investments:

Core properties—at cost
Non-core properties—at cost

Less: Accumulated depreciation

Mortgage note receivable

Cash and cash equivalents
Restricted cash
Marketable securities
Tenant receivables
Prepaid expenses and other assets
Deferred charges, net of accumulated amortization

Total Assets

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:

Secured revolving credit line
Mortgage notes payable
Accounts payable and accrued expenses
Deferred compensation—officers
Other liabilities

Total Liabilities

Minority interests

Redeemable Preferred Stock, par value $.01 per share;

8.99% Series B Senior Cumulative Preferred Stock, (liquidation preference

of $100 per share); 150,000 shares issued and outstanding

8.50% Series C Senior Cumulative Preferred Stock, (liquidation preference

of $100 per share); 400,000 shares issued and outstanding

Total Preferred Stock

Commitments and Contingencies

Stockholders’ Equity:

7.5% Series D Senior Cumulative Preferred Stock (liquidation preference

of $25 per share); 2,450,000 shares issued and outstanding

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;

7,773,618 and 7,635,441 shares issued and outstanding

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

18,836,778 and 18,804,781 shares issued and outstanding

Additional paid in capital
Cumulative distributions in excess of net income
Accumulated other comprehensive income
Officer note receivable

Total Stockholders’ Equity

Total Liabilities and Stockholders’ Equity

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

October 31,

2007

2006

$521,476
1,383
522,859
(85,555)
437,304
1,305
438,609

4,218
589
1,740
16,588
5,445
4,581
$471,770

$ 12,200
96,282
3,970
1,191
7,438
121,081

$489,160
6,383
495,543
(77,258)
418,285
1,361
419,646

2,800
589
2,011
17,176
4,484
4,644
$451,350

$
—
104,341
1,785
1,200
5,503
112,829

3,739

5,318

14,341

38,406
52,747

14,341

38,406
52,747

61,250

—

188
264,585
(31,077)
480
(1,300)
294,203
$471,770

—

188
262,024
(42,400)
618
(1,300)
280,456
$451,350

CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)

Revenues

Base rents
Recoveries from tenants
Settlement of lease guarantee obligation
Lease termination income
Mortgage interest and other

Total Revenues

Operating Expenses
Property operating
Property taxes
Depreciation and amortization
General and administrative
Directors’ fees and expenses
Total Operating Expenses

Operating Income
Non-Operating Income (Expense):

Interest expense
Interest, dividends and other investment income

Minority interests
Income from Continuing Operations before Discontinued Operations
Discontinued Operations:

Income from discontinued operations
Gains on sales of properties

Income from Discontinued Operations

Net Income

Preferred stock dividends

URSTADT BIDDLE PROPERTIES INC.

Year Ended October 31,
2006

2007

2005

$57,260
17,660
6,000
115
845
81,880

12,109
10,926
13,442
4,979
240
41,696

40,184

(7,773)
501
(161)
32,751

252
11,385
11,637

44,388
(9,342)

$54,862
16,957
—
75
408
72,302

11,666
10,262
13,073
4,981
250
40,232

32,070

(8,287)
950
(189)
24,544

488
—
488

25,032
(9,342)

$51,383
16,444
—
253
291
68,371

10,785
9,211
11,884
5,155
258
37,293

31,078

(8,502)
731
(339)
22,968

997
7,020
8,017

30,985
(7,009)

Net Income Applicable to Common and Class A Common Stockholders

$35,046

$15,690

$23,976

Basic Earnings Per Share:
Per Common Share:

Income from continuing operations
Income from discontinued operations
Net Income Applicable to Common Stockholders

Per Class A Common Share:

Income from continuing operations
Income from discontinued operations
Net Income Applicable to Class A Common Stockholders

Diluted Earnings Per Share:
Per Common Share:

Income from continuing operations
Income from discontinued operations
Net Income Applicable to Common Stockholders

Per Class A Common Share:

Income from continuing operations
Income from discontinued operations
Net Income Applicable to Class A Common Stockholders

Dividends Per Share:

Common
Class A Common

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

$ .86
$ .43
$1.29

$ .95
$ .47
$1.42

$ .83
$ .42
$1.25

$ .93
$ .46
$1.39

$ .83
$ .92

$.56
$.02
$.58

$.63
$.02
$.65

$.55
$.02
$.57

$.61
$.02
$.63

$.81
$.90

$.60
$.30
$.90

$.66
$.33
$.99

$.58
$.29
$.87

$.64
$.32
$.96

$.80
$.88

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

Cash Flows from Operating Activities:
Net income
Adjustments to reconcile net income to net cash provided

by operating activities:

Depreciation and amortization from continuing operations
Depreciation and amortization from discontinued operations
Straight-line rent adjustments
Restricted stock compensation expense
Change in value of deferred compensation arrangement
Gains on sale of properties
Gain on repayment of mortgage note receivable
Minority interests
Increase (decrease) in tenant receivables
Decrease in accounts payable and accrued expenses
(Increase) decrease in other assets and other liabilities, net
Increase in restricted cash

Net Cash Flow Provided by Operating Activities

Cash Flows from Investing Activities:
Redemption of marketable securities
Acquisitions of real estate investments
Acquisition of limited partner interests in consolidated joint ventures
Deposit on acquisition of real estate investment
Improvements to properties and deferred charges
Net proceeds from sales of properties
Distributions to limited partners of consolidated joint ventures
Payments received on mortgage notes receivable
Refund of escrow funds

Net Cash Flow (Used in) Investing Activities

Cash Flows from Financing Activities:

Proceeds from revolving credit line borrowings
Repayments on revolving credit line borrowings
Net proceeds from issuance of Series D Preferred stock
Sales of additional shares of Common and Class A Common Stock
Principal repayments on mortgage notes payable
Dividends paid—Common and Class A Common Stock
Dividends paid—Preferred Stock
Repurchases of shares of Class A Common Stock

Net Cash Flow (Used in) Provided by Financing Activities

Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year

Year Ended October 31,
2006

2007

2005

$ 44,388

$ 25,032

$ 30,985

13,442
40
(889)
2,071
(9)
(11,385)
—
161
1,435
(1,170)
1,223
—
49,307

133
(21,314)
(2,849)
(424)
(8,098)
13,200
(161)
56
—
(19,457)

14,200
(2,000)
—
809
(8,059)
(23,723)
(9,342)
(317)
(28,432)

1,418
2,800

13,073
170
(1,227)
2,007
71
—
(102)
189
(1,507)
(2,391)
116
(2)
35,429

561
(16,628)
—
—
(5,251)
—
(189)
765
613
(20,129)

3,000
(3,000)
—
876
(7,445)
(23,083)
(9,342)
—
(38,994)

(23,694)
26,494

11,884
516
(1,313)
1,617
305
(7,020)
—
339
(1,605)
(151)
(36)
(16)
35,505

255
(71,710)
(2,078)
—
(5,319)
17,758
(339)
85
—
(61,348)

19,500
(19,500)
59,380
1,287
(4,173)
(22,402)
(7,009)
(686)
26,397

554
25,940

Cash and Cash Equivalents at End of Year

$ 4,218

$ 2,800

$ 26,494

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)

7.5% Series D
Preferred Stock
Issued Amount

Common Stock
Issued Amount

— $ — 7,189,991

Class A
Common Stock

Issued Amount
$186

$72 18,649,008

URSTADT BIDDLE PROPERTIES INC.

Unamortized
Restricted
Stock
Accumulated Compensation
and Officer

Cumulative
Additional Distributions

Paid In
Capital Net Income
$(36,581)
$264,680

Other
In Excess of Comprehensive
Income
$472

Total
Stock–
Note holders’
Receivable Equity
$(7,055) $221,774

Balances—October 31, 2004
Comprehensive Income:

Net income applicable to Common

and Class A common stockholders

Change in unrealized gains in
marketable securities
Total comprehensive income
Cash dividends paid:

Common stock ($0.80 per share)
Class A common stock ($0.88 per share)

Issuance of shares under

dividend reinvestment plan

Shares issued under restricted stock plan
Amortization of restricted stock

compensation and other adjustment

Exercise of stock options
Repurchases of Common

and Class A common stock
Issuance of Series D Preferred Stock
Balances—October 31, 2005
Reversal of unamortized stock

compensation upon adoption

of SFAS No. 123R
Comprehensive Income:

Net income applicable to Common

and Class A common stockholders

Change in unrealized gains
in marketable securities

Total comprehensive income
Cash dividends paid :

Common stock ($0.81 per share)
Class A common stock ($0.90 per share)

Issuance of shares under dividend

reinvestment plan
Exercise of stock options
Shares issued under restricted stock plan
Restricted stock compensation
Balances—October 31, 2006
Comprehensive Income:

Net income applicable to Common

and Class A common stockholders

Change in unrealized gains
in marketable securities

Total comprehensive income
Cash dividends paid :

Common stock ($0.83 per share)
Class A common stock ($0.92 per share)

Issuance of shares under dividend

reinvestment plan
Exercise of stock options
Shares issued under restricted stock plan
Restricted stock compensation
Repurchase of Class A common stock
Forfeiture of restricted stock
Balances—October 31, 2007

—

—
—

—

—
—

—

—
—

59,390
—
— 175,800

—
—

—
7,750

—

—
—

—
2

—
—

—

—
—

15,767
75,675

—
6,750

—
2,450,000
2,450,000

(3,600)
—
61,250
—
61,250 7,429,331

(41,400)
—
—
—
74 18,705,800

—

—
—

—

—
—

—

—
—

—

—
—

—

—
—

—
—
—
—
2,450,000

30,810
—
—
9,500
— 165,800
—
—
61,250 7,635,441

15,431
—
4,500
—
79,050
2
—
—
76 18,804,781

—

—
—

—

—
—

—

—
—

—

—
—

—

—
—

—

—
—

—
1

—
—

—
—
187

—

—
—

—
—
1
—
188

—

—
—

—

—
—

1,186
4,080

(125)
100

(686)
(1,870)
267,365

23,976

—

(5,918)
(16,484)

—
—

—
—
(35,007)

(8,221)

—

—
—

769
107
(3)
2,007
262,024

—

—
—

15,690

—

(6,168)
(16,915)

—
—
—
—
(42,400)

35,046

—

(6,435)
(17,288)

—
—
—
—
—
—
$(31,077)

—

—
—

—
—
499

—

119

—
—

—
—
—
—
618

—

(138)

—
—

—
—
—
—
—
—
$480

— 23,976

—

27
24,003

— (5,918)
— (16,484)

— 1,186
—

(4,083)

1,617
—

1,492
100

(686)
—
— 59,380
(9,521) 284,847

8,221

—

— 15,690

—

119
15,809

— (6,168)
— (16,915)

769
—
107
—
—
—
— 2,007
(1,300) 280,456

— 35,046

—

(138)
34,908

— (6,435)
— (17,288)

790
—
17
—
—
1
— 2,071
(317)
—
—
—
$(1,300) $294,203

—
—
—
—
—
—
2,450,000

32,377
—
—
—
— 105,800
—
—
—
—
—
—
$61,250 7,773,618

12,444
—
1,953
—
70,300
1
—
—
(21,200)
—
(31,500)
—
$77 18,836,778

—
—
—
—
—
—
$188

790
17
—
2,071
(317)
—
$264,585

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) ORGANIZATION, BASIS OF PRESENTATION

AND 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. The Company’s
major tenants include supermarket chains and other retailers
who sell basic necessities. At October 31, 2007, the Company
owned or had interests in thirty-nine properties containing a
total of 3.7 million square feet of leasable area.

Principles of Consolidation and Use of Estimates

The accompanying consolidated financial statements
include the accounts of the Company, its wholly owned
subsidiaries, and joint ventures in which the Company
meets certain criteria of a sole general partner in
accordance with Emerging Issues Task Force (“EITF”)
Issue 04-5, “Determining Whether a General Partner, or the
General Partners as a Group, Controls a Limited
Partnership or Similar Entity When the Limited Partners
Have Certain Rights.” The Company has determined that
such joint ventures should be consolidated into the
consolidated financial statements of the Company. All
significant intercompany transactions and balances have
been eliminated in consolidation.

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

Reclassifications

Certain prior period amounts have been reclassified

to conform to the current year presentation.

Federal Income Taxes

The Company has elected to be treated as a REIT under

Sections 856-860 of the Internal Revenue Code (Code).
Under those sections, a REIT that among other things,
distributes at least 90% of real estate trust taxable income
and meets certain other qualifications prescribed by the
Code will not be taxed on that portion of its taxable

income that is distributed. The Company believes it
qualifies as a REIT and has distributed all of its taxable
income for the fiscal years through 2007 in accordance
with the provisions of the Code. Accordingly, no
provision has been made for Federal income taxes in
the accompanying consolidated financial statements.

Real Estate Investments

All capitalizable costs related to the improvement
or replacement of real estate properties are capitalized.
Additions, renovations and improvements that enhance
and/or extend the useful life of a property are also
capitalized. 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.

Upon the acquisition of real estate properties, the fair

value of the real estate purchased is allocated to the
acquired tangible assets (consisting of land, buildings and
building improvements), and identified intangible assets
and liabilities (consisting of above-market and below-
market leases and in-place leases), in accordance with
SFAS No. 141, “Business Combinations.” The Company
utilizes methods similar to those used by independent
appraisers in estimating the fair value of acquired assets
and liabilities. The fair value of the tangible assets of an
acquired property considers the value of the property
“as-if-vacant.” The fair value reflects the depreciated
replacement cost of the asset. In allocating purchase price
to identified intangible assets and liabilities of an acquired
property, the value of above-market and below-market
leases are estimated based on the differences between
(i) contractual rentals and the estimated market rents over
the applicable lease term discounted back to the date of
acquisition utilizing a discount rate adjusted for the credit
risk associated with the respective tenants and (ii) the
estimated cost of acquiring such leases giving effect to the
Company’s history of providing tenant improvements and
paying leasing commissions, offset by a vacancy period
during which such space would be leased. The aggregate
value of in-place leases is measured by the excess of (i) the
purchase price paid for a property after adjusting existing
in-place leases to market rental rates over (ii) the estimated
fair value of the property “as-if-vacant,” determined as set
forth above.

Above and below market leases acquired are recorded at
their fair value. The capitalized above-market lease values
are amortized as a reduction of rental revenue over the
remaining term of the respective leases and the capitalized
below-market lease values are amortized as an increase to
rental revenue over the remaining term of the respective
leases. The value of in-place leases is based on the
Company’s evaluation of the specific characteristics of
each tenant’s lease. Factors considered include estimates
of carrying costs during expected lease-up periods, current
market conditions, and costs to execute similar leases.

The value of in-place leases is amortized over the remaining
term of the respective leases. If a tenant vacates its space prior
to its contractual expiration date, any unamortized balance
of their related intangible asset is expensed.

Depreciation and Amortization

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

Property Held for Sale

The Company has adopted the provisions of Statement
of Financial Accounting Standards No. 144, “Accounting
for the Impairment or Disposal of Long-Lived Assets”
(“SFAS No. 144”). SFAS No. 144 requires, among other
things, that the assets and liabilities and the results of
operations of the Company’s properties that have been
sold or otherwise qualify as held for sale be classified as
discontinued operations and presented separately in the
Company’s consolidated financial statements. The
Company classifies properties as held for sale that are
under contract for sale and are expected to be sold within
the next twelve months.

Deferred Charges

Deferred charges consist principally of leasing
commissions (which are amortized ratably over the
life of the tenant leases) and financing fees (which are
amortized over the terms of the respective agreements).
Deferred charges in the accompanying consolidated
balance sheets are shown at cost, net of accumulated
amortization of $2,708,000 and $2,595,000 as of
October 31, 2007 and 2006, respectively.

Asset 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
aggregate future net cash flows (undiscounted and without
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 amounts of the assets exceed the fair value.

URSTADT BIDDLE PROPERTIES INC.

Revenue Recognition

Revenues from operating leases include revenues from
core properties and non-core properties. Rental income is
generally recognized based on the terms of leases entered
into with tenants. In those instances in which the Company
funds tenant improvements and the improvements are
deemed to be owned by the Company, revenue recognition
will commence when the improvements are substantially
completed and possession or control of the space is turned
over to the tenant. When the Company determines that the
tenant allowances are lease incentives, the Company
commences revenue recognition when possession or
control of the space is turned over to the tenant for tenant
work to begin. Minimum rental income from leases with
scheduled rent increases is recognized on a straight-line
basis over the lease term. At October 31, 2007 and 2006,
approximately $10,078,000 and $9,278,000 has been
recognized as straight-line rents receivable (representing
the current net cumulative rents recognized prior to when
billed and collectible as provided by the terms of the
leases), all of which is included in tenant receivables
in the accompanying consolidated financial statements.
Percentage rent is recognized when a specific tenant’s sales
breakpoint is achieved. Property operating expense
recoveries from tenants of common area maintenance, real
estate taxes and other recoverable costs are recognized in
the period the related expenses are incurred. Lease
incentives are amortized as a reduction of rental revenue
over the respective tenant lease terms. Lease termination
amounts received by the Company from its tenants are
recognized as income in the period received. Interest
income is recognized as it is earned. Gains or losses on
disposition of properties are recorded when the criteria for
recognizing such gains or losses under generally accepted
accounting principles have been met.

The Company provides an allowance for doubtful

accounts against the portion of tenant receivables
(including an allowance for future tenant credit losses
of approximately 10% of the deferred straight-line rents
receivable) which is estimated to be uncollectible. Such
allowances are reviewed periodically. At October 31, 2007
and 2006, tenant receivables in the accompanying
consolidated balance sheets are shown net of allowances
for doubtful accounts of $1,946,000 and $1,561,000,
respectively. During the years ended October 31, 2007,
2006 and 2005, the Company provided $539,000, $200,000
and $90,000, respectively, for uncollectible amounts,
which is recorded in the accompanying consolidated
statement of income as a reduction of rental revenue.

Cash Equivalents

Cash and cash equivalents consist of cash in banks and

short-term investments with original maturities of less
than three months.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Restricted Cash

Restricted cash consists of those tenant security deposits
and replacement and other reserves required by agreement
with certain of the Company’s mortgage lenders for
property level capital requirements that are required to
be held in separate bank accounts.

Although management is not aware of any factors
that would significantly affect the estimated fair value
amounts, such amounts have not been comprehensively
revalued for purposes of these financial statements since
that date and current estimates of fair value may differ
significantly from the amounts presented herein.

Marketable Securities

Concentration of Credit Risk

Financial instruments that potentially subject the

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

Earnings Per Share

The Company calculates basic and diluted earnings per

share in accordance with SFAS No. 128, “Earnings Per
Share.” Basic earnings per share (“EPS”) excludes the
impact of dilutive shares and is computed by dividing
net income applicable to Common and Class A Common
stockholders by the weighted average number of Common
shares and Class A Common shares outstanding for the
period. Diluted EPS reflects the potential dilution that
could occur if securities or other contracts to issue Common
shares or Class A Common shares were exercised or
converted into Common shares or Class A Common
shares and then shared in the earnings of the Company.
Since the cash dividends declared on the Company’s
Class A Common stock are higher than the dividends
declared on the Common Stock, basic and diluted EPS
have been calculated using the “two-class” method. The
two-class method is an earnings allocation formula that
determines earnings per share for each class of common
stock according to the weighted average of the dividends
declared, outstanding shares per class and participation
rights in undistributed earnings.

Marketable securities consist of short-term investments
and marketable equity securities. Short-term investments
(consisting of investments with original maturities of greater
than three months when purchased) and marketable equity
securities are carried at fair value. The Company has
classified marketable securities as available for sale.
Unrealized gains and losses on available for sale
securities are recorded as other comprehensive income
in Stockholders’ Equity. For the years ended October 31,
2006 and 2005, gains on sales of marketable securities,
determined based on specific identification amounted
to $122,000 and $70,000, respectively (none in fiscal 2007).

Comprehensive Income

Comprehensive income is comprised of net income and
other comprehensive income (loss). Other comprehensive
income (loss) includes items that are otherwise recorded
directly in stockholders’ equity, such as unrealized gains
or losses on marketable securities. At October 31, 2007
and 2006, other comprehensive income consists of net
unrealized gains on marketable securities of $480,000 and
$618,000, respectively. Unrealized gains included in other
comprehensive income will be reclassified into earnings as
gains are realized.

Fair Value of Financial Instruments

The carrying values of cash and cash equivalents,

restricted cash, tenant receivables, prepaid expenses and
other assets, accounts payable, accrued expenses and other
liabilities are reasonable estimates of their fair values
because of the short term nature of these instruments.

The estimated fair value of mortgage notes receivable
collateralized by real property is based on discounting the
future cash flows at a year-end risk adjusted lending rate
that the Company would utilize for loans of similar risk
and duration. At October 31, 2007 and 2006, the estimated
aggregate fair value of the mortgage notes receivable was
$959,000 and $1,093,000, respectively.

The estimated fair value of mortgage notes payable was
$94,780,000 and $105,600,000 at October 31, 2007 and 2006,
respectively. The estimated fair value of mortgage notes
payable is based on discounting the future cash flows at a
year-end risk adjusted borrowing rate currently available
to the Company for issuance of debt with similar terms
and remaining maturities.

The following table sets forth the reconciliation between

Segment Reporting

URSTADT BIDDLE PROPERTIES INC.

basic and diluted EPS (in thousands):

Year Ended October 31,
2007

2006

2005

Numerator
Net income applicable to

common stockholders—basic

$ 8,800 $ 3,871 $ 5,902

Effect of dilutive securities:

Stock awards and operating

partnership units
Net income applicable to

324

220

281

common stockholders—diluted

$ 9,124

$ 4,091 $ 6,183

Denominator
Denominator for basic EPS—

weighted average common shares

6,845

6,662

6,566

Effect of dilutive securities:

Stock awards and operating

partnership units

Operating partnership units
Denominator for diluted EPS—
weighted average common
equivalent shares

Numerator
Net income applicable to Class A
common stockholders—basic

Effect of dilutive securities:

Stock awards and operating

448
—

482
55

446
55

7,293

7,199

7,067

$26,246

$11,819 $18,074

partnership units

(324)

—

Net income applicable to Class A
common stockholders—diluted

$25,922

$11,819 $18,132

Denominator
Denominator for basic EPS—
weighted average Class A
common shares

Effect of dilutive securities:

Stock awards
Operating partnership units
Denominator for diluted EPS—

weighted average Class A
common equivalent shares

Stock-Based Compensation

18,419

18,312

18,280

275
—

306
55

314
246

18,694

18,673

18,840

Prior to fiscal 2005, the Company accounted for its
stock-based compensation plans under the Accounting
Principles Board Opinion No. 25, “Accounting for Stock
Issued to Employees” (“APB No. 25”) , and related
Interpretations. Effective November 1, 2005, the Company
adopted the fair value recognition provisions of FASB
Statement No. 123R, “Share-Based Payment” (“SFAS
No. 123R”), using the modified-prospective-transition
method. Under that transition method, compensation
expense is recognized for all share-based payments
granted subsequent to November 1, 2005, based on the
fair value of the stock awards less estimated forfeitures.
The fair value of stock awards is equal to the fair value
of the Company’s stock on the grant date.

The Company operates in one industry segment,

ownership of commercial real estate properties which are
located principally in the northeastern United States. The
Company does not distinguish its property operations for
purposes of measuring performance. Accordingly, the
Company believes it has a single reportable segment for
disclosure purposes.

Recently Issued Accounting Pronouncements

In December 2007, the FASB issued SFAS No. 160,
“Noncontrolling Interests in Consolidated Financial
Statements,” which, among other things, provides guidance
and establishes amended accounting and reporting
standards for a parent company’s noncontrolling interest
in a subsidiary. The Company is currently evaluating the
impact of adopting the statement, which is effective for
fiscal years beginning on or after December 15, 2008.
In December 2007, the FASB issued SFAS No. 141R,

“Business Combinations,” (“SFAS No. 141R”) which replaces
SFAS No. 141, “Business Combinations.” SFAS No. 141R,
among other things, establishes principles and requirements
for how an acquirer entity recognizes and measures in its
financial statements the identifiable assets acquired, the
liabilities assumed (including intangibles) and any
noncontrolling interests in the acquired entity. The Company
is currently evaluating the impact of adopting the statement,
which is effective for fiscal years beginning on or after
December 15, 2008.

In February 2007, the FASB issued SFAS No. 159, “The

Fair Value Option for Financial Assets and Financial
Liabilities,” which provides companies with an option to
report selected financial assets and liabilities at fair value.
SFAS No. 159 also establishes presentation and disclosure
requirements designed to facilitate comparisons between
companies that choose different measurement attributes
from similar types of assets and liabilities. The Statement
does not eliminate the disclosure requirements of other
accounting standards, including requirements for
disclosures about fair value measurements in SFAS No. 107,
“Disclosure About Fair Value of Financial Instruments,”
and SFAS No. 157. The Company is currently evaluating
the impact of adopting the statement, which becomes
effective for fiscal years beginning after November 15, 2007.
In September 2006, the FASB issued SFAS No. 157, “Fair

Value Measurements.” This Statement defines fair value,
establishes a framework for measuring fair value in
generally accepted accounting principles (“GAAP”), and
expands disclosures about fair value measurements. The
Statement applies to accounting pronouncements that
require or permit fair value measurements, except for
share-based payments transactions under SFAS No. 123
and is effective for financial statements issued for fiscal
years beginning after November 15, 2007. The Company
does not believe adoption of SFAS No. 157 will have a
material effect on its financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In June 2006, the FASB issued Interpretation No. 48,

“Accounting for Uncertainty in Income Taxes—an
interpretation of SFAS No. 109” (“FIN No. 48”), that defines
a recognition threshold and measurement attribute for the
financial statement recognition and measurement of a tax
position taken or expected to be taken in a tax return.
FIN No. 48 also provides guidance on derecognition,
classification, interest and penalties, accounting in interim
periods, disclosure, and transition. FIN No. 48 is effective
for fiscal years beginning after December 15, 2006. The
adoption of FIN No. 48 is not expected to have an effect
on the Company’s consolidated financial statements.

(2) REAL ESTATE INVESTMENTS

The Company’s investments in real estate, net of

depreciation, were composed of the following at October 31,
2007 and 2006 (in thousands):

Mortgage
Notes
Properties Properties Receivable

Core Non-Core

Retail
Office
Industrial
Undeveloped

Land

$429,177
7,401
—

—
$436,578

$ —
—
726

—
$726

2007
2006
Totals
Totals
$1,305 $430,482 $411,047
7,401
7,391
726
904

—
—

—

304
$1,305 $438,609 $419,646

—

The Company’s investments at October 31, 2007

consisted of equity interests in 39 properties, which are
located in various regions throughout the United States
and one mortgage note receivable. The Company’s
primary investment focus is neighborhood and
community shopping centers located in the northeastern
United States. These properties are considered core
properties of the Company. The remaining properties are
located outside of the northeastern United States and are
considered non-core properties. Since a significant
concentration of the Company’s properties are in the
northeast, market changes in this region could have an
effect on the Company’s leasing efforts and ultimately its
overall results of operations. The following is a summary
of the geographic locations of the Company’s investments
at October 31, 2007 and 2006 (in thousands):

Northeast
Midwest
Southwest

2007
$436,578
726
1,305
$438,609

2006
$415,664
602
3,380
$419,646

(3) CORE PROPERTIES

The components of core properties were as follows

(in thousands):

Land
Buildings and improvements

Accumulated depreciation

2007
$ 94,930
426,546
521,476
(84,898)
$436,578

2006
$ 90,532
398,628
489,160
(73,496)
$415,664

Space at the Company’s core properties 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 totaling $333,862,000 become due as follows: 2008—
$52,859,000; 2009—$48,388,000; 2010—$43,424,000; 2011—
$38,812,000; 2012—$32,309,000 and thereafter—$118,070,000.

Certain of the Company’s leases provide for the

payment of additional rent based on a percentage of the
tenant’s revenues. Such additional percentage rents are
included in operating lease income and were less than 1%
of consolidated revenues in each of the three years ended
October 31, 2007.

Owned Properties

In January 2007, the Company acquired a 10,100 square

foot shopping center located in Monroe, Connecticut
(“Monroe”) for $3.8 million, including closing costs.
In April 2007, the Company acquired the Emerson

Shopping Plaza (“Emerson”), a 92,000 square foot
shopping center located in Emerson, New Jersey for a
purchase price of approximately $17.5 million, including
closing costs.

In January 2007, the Company entered into a lease with

a wholesale club to lease approximately 107,000 square
feet of space at The Dock Shopping Center, Stratford,
Connecticut, subject to certain conditions. In connection
with the new lease, the Company agreed to provide up to
$6.75 million toward the costs of redeveloping the space
that previously had been occupied by a tenant who, in a
prior year, filed a petition in bankruptcy and vacated the
space. As of October 31, 2007, the Company has approved
payments totaling $6.1 million (of which $2.9 million is
included in Accounts payable and accrued expenses in the
accompanying consolidated balance sheet at October 31,
2007) toward the costs of redeveloping the space. The former
tenant’s lease obligations were guaranteed through 2016 by
a corporate guarantor. The guarantor was released from its
obligations in exchange for a payment of $6 million. The
payment and release of guarantee were subject to certain
conditions contained in the agreement. The conditions were
satisfied on April 15, 2007 and the Company recorded the
guarantee payment as income in fiscal 2007.

In May 2007, the Company acquired by contribution,
a 20% economic interest in a general partnership that owns
a retail/office property in Westchester County, New York.
Simultaneously, the Company contributed one of its wholly-
owned retail properties into a newly formed limited liability
company (“LLC”). As a result of the contributions, the
Company owns approximately 76% of the LLC, the accounts
of which are included in the accompanying consolidated
financial statements at October 31, 2007. The Company has
recorded the non-controlling member’s share of the net
assets of the LLC of $546,000 in Minority Interests, in the
accompanying October 31, 2007 consolidated balance
sheet. The amount recorded for minority interest
represents a non-cash investing activity and is therefore,
not included in the accompanying 2007 consolidated
statement of cash flows. The Company has among other
things, guaranteed a preferential return to the other
member of the LLC of $36,000 per annum.

In March 2006, the Company acquired three retail

properties totaling 50,000 square feet of gross leasable space
(“GLA”) located in Pelham, New York and Queens, New
York (“Pelham Properties”). The three properties were
acquired for an aggregate purchase price of $16.6 million.

In fiscal 2005, the Company acquired The Dock Shopping
Center (“The Dock”) (269,000 square feet of GLA), for $51.1
million and Staples Plaza (“Staples Plaza”) (200,000 square
feet of GLA) for a purchase price of $28.5 million, including
the assumption of a first mortgage loan at its estimated fair
value of $8.5 million. The assumption of the mortgage loan
represents a non-cash financing activity and is therefore not
included in the accompanying 2005 consolidated statement
of cash flows.

Upon the acquisition of real estate properties, the fair

value of the real estate purchased is allocated to the
acquired tangible assets, (consisting of land, buildings and
building improvements) and identified intangible assets
and liabilities (consisting of above-market and below-
market leases and in-place leases), in accordance with
SFAS No. 141, “Business Combinations.” The Company
utilizes methods similar to those used by independent
appraisers in estimating the fair value of acquired assets
and liabilities. The fair value of the tangible assets of an
acquired property considers the value of the property
“as-if-vacant.” The fair value reflects the depreciated
replacement cost of the asset. In allocating purchase price
to identified intangible assets and liabilities of an acquired
property, the value of above-market and below-market
leases are estimated based on the differences between (i)
contractual rentals and the estimated market rents over
the applicable lease term discounted back to the date of
acquisition utilizing a discount rate adjusted for the credit
risk associated with the respective tenants and (ii) the

URSTADT BIDDLE PROPERTIES INC.

estimated cost of acquiring such leases giving effect to the
Company’s history of providing tenant improvements and
paying leasing commissions, offset by a vacancy period
during which such space would be leased. The aggregate
value of in-place leases is measured by the excess of (i) the
purchase price paid for a property after adjusting existing
in-place leases to market rental rates over (ii) the estimated
fair value of the property “as-if-vacant,” determined as set
forth above. The above-market and below-market lease
intangibles are amortized to rental income over the
remaining non-cancelable terms of the respective leases. If
a lease were to be terminated prior to its stated expiration,
all unamortized amounts relating to the lease would be
immediately recognized in operations.

During fiscal 2007, the Company completed its

evaluation of the acquired leases at Monroe and Emerson.
As a result of its evaluations, the Company has allocated
a total of $676,000 to a liability associated with the net fair
value assigned to the acquired leases at the properties,
which amount represents a non-cash investing activity
and is therefore not included in the accompanying 2007
consolidated statement of cash flows.

For the years ended October 31, 2007, 2006 and 2005, the
net amortization of above-market and below-market leases
amounted to $241,000, $211,000 and $449,000, respectively,
which amounts are included in base rents in the
accompanying consolidated statements of income.

In fiscal 2007, the Company incurred costs of approximately

$8.1 million related to capital improvements to its properties
and leasing costs.

Consolidated Joint Ventures

The Company is the general partner in a consolidated
limited partnership which owns a shopping center. The
limited partnership has a defined termination date of
December 31, 2097. The partners are entitled to receive an
annual cash preference payable from available cash of the
partnership. Any unpaid preferences accumulate and are
paid from future cash, if any. The limited partners’ cash
preferences are paid after the general partner’s preferences
are satisfied. The balance of available cash, if any, is
distributed in accordance with the respective partner’s
interests. Upon liquidation of the partnership, proceeds
from the sale of partnership assets are to be distributed in
accordance with the respective partnership interests. The
partners are not obligated to make any additional capital
contributions to the partnership. The Company had
retained an affiliate of one of the limited partners to provide
management and leasing services to the property at an
annual fee of $125,000 through June 2007. The limited
partner interest is reflected in the accompanying
consolidated financial statements as Minority Interests.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In August 2007, the Company purchased all of the

limited partner interests in a consolidated partnership, in
which the Company was the sole general partner for $2.8
million. As a result of the purchase, the partnership was
terminated and the property is now directly owned by
the Company.

In May 2003, the FASB issued SFAS No. 150, “Accounting

for Certain Financial Instruments with Characteristics of
both Liabilities and Equity” (“SFAS No. 150”). SFAS No. 150
establishes standards for classifying and measuring as
liabilities certain financial instruments that embody
obligations of the issuer and have characteristics of both
liabilities and equity. The FASB deferred the classification
and measurement provisions of SFAS No. 150 that apply
to certain mandatory redeemable non-controlling
interests. This deferral is expected to remain in effect
while these provisions are further evaluated by the FASB.
The Company has one finite life joint venture which
contains a mandatory redeemable non-controlling
interest. At October 31, 2007, the estimated fair value of
the minority interest was approximately $3.5 million. The
joint venture has a termination date of December 31, 2097.

(4) NON-CORE PROPERTIES

At October 31, 2007, the non-core properties consist of
two industrial properties located outside of the Northeast
region of the United States. The Board of Directors has
authorized management, subject to its approval of any
contract for sale, to sell the non-core properties of the
Company over a period of several years in furtherance of
the Company’s objectives to focus on northeast properties.
The components of non-core properties were as follows

(in thousands):

Land
Buildings and improvements

Accumulated depreciation

2007
$ 450
933
1,383
(657)
$ 726

2006
943
5,440
6,383
(3,762)
$ 2,621

Minimum rental payments on non-cancelable operating
leases of the non-core properties totaling $7,413,000 become
due as follows: 2008—$1,840,000; 2009—$1,840,000; 2010—
$1,840,000; 2011—$1,266,000; 2012—$627,000.

(5) DISCONTINUED OPERATIONS

The Company has adopted the provisions of Statement
of Financial Accounting Standards No. 144, “Accounting
for the Impairment or Disposal of Long-Lived Assets”
(SFAS No. 144). SFAS No. 144 requires, among other
things, that the results of operations of properties sold
or that otherwise qualify as held for sale be classified as
discontinued operations and presented separately in the
Company’s consolidated financial statements.

In fiscal 2007, the Company sold a non-core retail
property, in Tempe, Arizona, for a sale price of $13.2
million, resulting in a gain on sale of the property of
approximately $11.4 million. In fiscal 2005, the Company
sold two properties for a total sales price of $18.95 million
and recorded combined gains on the sales of $7.0 million
in fiscal 2005.

The operating results for the sold properties have been
classified as discontinued operations in the accompanying
consolidated financial statements. Revenues from
discontinued operations were approximately $320,000,
$747,000 and $2,500,000 for the years ended October 31,
2007, 2006 and 2005, respectively.

(6) MORTGAGE NOTE RECEIVABLE

At October 31, 2007, mortgage note receivable consisted
of one fixed rate mortgage with a contractual interest rate
of 9%. The mortgage note matures in 2013 and is secured
by a retail property. Interest is recognized on the effective
yield method. The mortgage note is recorded at a
discounted amount which reflects the market interest rate
at the time of acceptance of the note. At October 31, 2007,
the remaining unamortized discount was $141,000.

At October 31, 2007, principal payments on the mortgage

note receivable become due as follows: 2008—$90,000;
2009—$98,000; 2010—$108,000; 2011—$118,000; 2012—
$129,000 and thereafter—$903,000.

(7) MORTGAGE NOTES PAYABLE AND BANK

LINES OF CREDIT

At October 31, 2007, mortgage notes payable are due in
installments over various periods to fiscal 2017 at effective
rates of interest ranging from 5.52% to 7.78% and are
collateralized by real estate investments having a net
carrying value of $169,426,000.

Combined aggregate principal maturities of mortgage
notes payable during the next five years and thereafter are
as follows (in thousands):

Scheduled

Principal
Amortization Repayments
$11,291
17,107
5,155
3,946
3,791
43,384
$84,674

$ 1,775
1,435
1,134
1,137
1,005
5,122
$11,608

Total
$13,066
18,542
6,289
5,083
4,796
48,506
$96,282

2008
2009
2010
2011
2012
Thereafter

At October 31, 2007, the Company had a secured
revolving credit facility with a commercial bank (the
“Secured Credit Facility”) which provides for borrowings
of up to $30 million. The Secured Credit Facility expires in
April 2008 and is collateralized by first mortgage liens on
two of the Company’s properties. Interest on outstanding
borrowings is at prime + 1/2% or LIBOR + 1.5%.

The Secured Credit Facility requires the Company to
maintain certain debt service coverage ratios during its
term. The Company pays an annual fee of 0.25% on the
unused portion of the Secured Credit Facility. The Secured
Credit Facility is available to fund acquisitions, capital
expenditures, mortgage repayments, working capital
and other general corporate purposes.

The Company had outstanding borrowings under the

secured credit line of $12.2 million at October 31, 2007
(there were no outstanding borrowings on October 31, 2006).
On October 24, 2007, the Company signed a commitment
letter with a major commercial bank to act as administrative
agent and sole lead arranger of a $50 million senior
unsecured revolving credit facility (the “Facility”). The
Facility is to be used for working capital, general corporate
and other purposes. The entering into and closing of the
facility is subject to certain terms, conditions and covenants
customary for facilities of this type including negotiation of
a definitive credit agreement with the bank.

Interest paid in the years ended October 31, 2007, 2006
and 2005 was approximately $7.8 million, $8.5 million and
$8.5 million, respectively.

(8) REDEEMABLE PREFERRED STOCK

The 8.99% Series B Senior Cumulative Preferred Stock

(“Series B Preferred Stock”) and 8.50% Series C Senior
Cumulative Preferred Stock (“Series C Preferred Stock”)
have no stated maturity, are not subject to any sinking fund
or mandatory redemption and are not convertible into
other securities or property of the Company. Commencing
January 2008 (Series B Preferred Stock) and May 2010
(Series C Preferred Stock), the Company, at its option, may
redeem the preferred stock issues, 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), each holder of Series B Preferred Stock and Series C
Preferred Stock has the right, at such holder’s option, to
require the Company to repurchase all or any part of such
holder’s stock for cash at a repurchase price of $100 per
share, plus all accrued and unpaid dividends.

As the holders of the Series B Preferred Stock and Series C

Preferred Stock only have a contingent right to require the
Company to repurchase all or part of such holders’ shares
upon a change of control of the Company (as defined), the
Series B Preferred Stock and Series C Preferred Stock are
classified as redeemable equity instruments since a change
in control is not certain to occur.

URSTADT BIDDLE PROPERTIES INC.

The Series B Preferred Stock and Series C Preferred
Stock contain covenants that require the Company to
maintain certain financial coverages relating to fixed
charge and capitalization ratios. Shares of both Preferred
Stock series are non-voting; however, under certain
circumstances (relating to non-payment of dividends
or failure to comply with the financial covenants) the
preferred stockholders will be entitled to elect two
directors. The Company was in compliance with such
covenants at October 31, 2007 and 2006.

The Company is authorized to issue up to 20,000,000

shares of Preferred Stock. At October 31, 2007 and 2006, the
Company had issued and outstanding 150,000 shares of
Series B Preferred Stock, 400,000 shares of Series C Preferred
Stock and 2,450,000 shares of Series D Senior Cumulative
Preferred Stock (Series D Preferred Stock) (see Note 9).

(9) STOCKHOLDERS’ EQUITY

The Series D Preferred Stock has no maturity and is not

convertible into any other security of the Company. The
Series D Preferred Stock is redeemable at the Company’s
option on or after April 12, 2010 at a price of $25.00 per
share plus accrued and unpaid dividends. Underwriting
commissions and costs incurred in connection with the
sale of the Series D Preferred Stock are reflected as a
reduction of additional paid in capital.

The Class A Common Stock entitles the holder to 1/20 of
one vote per share. The Common Stock entitles the holder
to one vote per share. Each share of Common Stock and
Class A Common Stock have identical rights with respect
to dividends 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 Dividend Reinvestment and Share

Purchase Plan as amended (the “DRIP”), that permits
stockholders to acquire additional shares of Common Stock
and Class A Common Stock by automatically reinvesting
dividends. During fiscal 2007, the Company issued 32,377
shares of Common Stock and 12,444 shares of Class A
Common Stock (30,810 shares of Common Stock and 15,431
shares of Class A Common Stock in fiscal 2006) through the
DRIP. As of October 31, 2007, there remained 177,330 shares
of common stock and 481,586 shares of Class A Common
Stock available for issuance under the DRIP.

The Company has a stockholder rights agreement that
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-
hundredth 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 exercisable,
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 aggregate value
of all outstanding stock, except, among other reasons, as
approved by the Board of Directors, such shares in excess
of this limit automatically shall be exchanged for an equal
number of shares of Excess Stock. Excess Stock has limited
rights, may not be voted and is not entitled to any dividends.

In fiscal 2005, the Board of Directors of the Company
approved a stock repurchase program for the repurchase
of up to 500,000 shares of Common Stock and Class A
Common Stock in the aggregate. During fiscal 2007, the
Company repurchased 21,200 shares of Class A Common
Stock at an aggregate cost of $317,500. As of October 31,
2007, the Company had repurchased 3,600 shares of
Common Stock and 62,600 shares of Class A Common
Stock under the stock repurchase program.

(10) STOCK COMPENSATION AND OTHER

BENEFIT PLANS

Restricted Stock Plan

The Company has a restricted stock plan (the “Plan”) for
key employees and directors of the Company. The Plan, as
amended, permits the grant of up to 2,000,000 shares of the
Company’s common equity consisting of 350,000 Common
shares, 350,000 Class A Common shares and 1,300,000
shares, which at the discretion of the Company’s
compensation committee, may be awarded in any
combination of Class A Common shares or Common shares.
Prior to November 1, 2005, the grant date fair value of
nonvested restricted stock awards was expensed over the
explicit stock award vesting periods. Such awards
provided for continued vesting after retirement. Upon
adoption of SFAS No. 123R, the Company changed its
policy for recognizing compensation expense for restricted
stock awards to the earlier of the explicit vesting period or
the date a participant first becomes eligible for retirement.
For nonvested restricted stock awards granted prior to the
adoption of SFAS No.123R, the Company continues to
recognize compensation expense over the explicit vesting
periods and accelerates any remaining unrecognized
compensation cost when a participant actually retires.

Had compensation expense for nonvested restricted

stock awards issued prior to November 1, 2005 been
determined based on the date a participant first becomes
eligible for retirement, the Company’s income from
continuing operations in the three year period ended
October 31, 2007 would have been as follows (amounts
in thousands, except per share):

Year Ended October 31,
2007

2006

2005

Income from continuing
operations, as reported
Adjustment to compensation
expense had SFAS No. 123R
been adopted prior to
November 1, 2005
Pro forma income from
continuing operations

Pro forma earnings per share
from continuing operations:

Basic:

Common share
Class A Common share

Diluted:

Common share
Class A Common share

$23,409

$15,202 $15,959

428

551

(732)

$23,837

$15,753 $15,227

$.87
$.97

$.85
$.94

$.58
$.65

$.57
$.64

$.57
$.63

$.56
$.62

Consistent with the provisions of APB No. 25, the

Company recorded the fair value of nonvested restricted
stock grants and an offsetting unamortized restricted stock
compensation amount within stockholders’ equity. Under
SFAS No. 123R, an equity instrument is not considered to
be issued until the instrument vests. Accordingly, the
Company reversed $8,221,000 of unamortized restricted
stock compensation and additional paid in capital included
in stockholders’ equity as of November 1, 2005 representing
the nonvested portions of restricted stock grants awarded
prior to the effective date of SFAS No. 123R resulting in no
net impact on the balance of total stockholders’ equity.

In January 2007, the Company awarded 105,800 shares of
Common Stock and 70,300 shares of Class A Common Stock
to participants in the Plan. The grant date fair value of
restricted stock grants awarded to participants was $3.2
million. As of October 31, 2007, there remained a total of
$10.7 million of unrecognized restricted stock compensation
related to outstanding nonvested restricted stock grants
awarded under the Plan at that date. Restricted stock
compensation is expected to be expensed over a remaining
weighted average period of eight years. For the years
ended October 31, 2007, 2006 and 2005, amounts charged
to compensation expense totaled $2,071,000, $2,007,000 and
$1,617,000, respectively.

URSTADT BIDDLE PROPERTIES INC.

A summary of the status of the Company’s nonvested restricted stock awards as of October 31, 2007, and changes during

the year ended October 31, 2007 are presented below:

Nonvested at November 1, 2006

Granted
Vested
Forfeited

Nonvested at October 31, 2007

Common Shares

Class A Common Shares

Weighted-Average
Grant Date
Fair Value
$13.10
$17.55
$ 9.42
$ —
$14.16

Shares
939,975
105,800
(148,375)
—
897,400

Weighted-Average
Grant Date
Fair Value
$12.46
$19.09
$ 8.51
$15.94
$13.90

Shares
465,975
70,300
(81,425)
(31,500)
423,350

Stock Option Plan

Prior to December 2006, the Company had a stock option

plan whereby shares of Common Stock and Class A
Common Stock were reserved for issuance to key
employees and Directors of the Company. In December
2006, the Board of Directors approved the termination of
the stock option plan. There were no grants of stock
options in each of the three years ended October 31, 2007.
At October 31, 2007, there were outstanding stock options
to purchase 5,932 shares of Common Stock and 5,906
shares of Class A Common Stock.

In connection with the exercise of stock options in a prior

year, an officer of the Company executed a full recourse
promissory note equal to the purchase price of the shares.
At October 31, 2007 and 2006, the outstanding balance of
the officer’s note receivable totaled $1,300,000. The
outstanding note matures in 2012 and bears interest at
6.78%. The shares are pledged as additional collateral for
the note. Interest is payable quarterly. The note was fully
repaid in December 2007.

Profit Sharing and Savings Plan
The Company has a profit sharing and savings plan (the
“401K Plan”), which permits all eligible employees to
defer a portion of their compensation in accordance with

the Internal Revenue Code. Under the 401K Plan, the
Company may make discretionary contributions on behalf
of eligible employees. For the years ended October 31, 2007,
2006 and 2005, the Company made contributions to the
401K Plan of $140,000, $149,000 and $135,000, respectively.
The Company also has an Excess Benefits and Deferred
Compensation Plan that allows eligible employees to
defer benefits in excess of amounts provided under the
Company’s 401K Plan and a portion of the employee’s
current compensation.

(11) COMMITMENTS AND CONTINGENCIES

In the normal course of business, from time to time,
the Company is involved in legal actions relating to the
ownership and operations of its properties. In management’s
opinion, the liabilities, if any, that ultimately may result from
such legal actions are not expected to have a material adverse
effect on the consolidated financial position, results of
operations or liquidity of the Company.

At October 31, 2007, the Company had commitments
of approximately $765,000 for tenant related obligations.
The Company has an outstanding letter of credit of

$144,658 that expired in December 2007.

URSTADT BIDDLE PROPERTIES INC.

(12) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The unaudited quarterly results of operations for the years ended October 31, 2007 and 2006 are as follows (in

thousands, except per share data):

Year Ended October 31, 2007
Quarter Ended
Apr 30

July 31

Jan 31

Oct 31

Year Ended October 31, 2006
Quarter Ended

Jan 31

Apr 30

July 31

Oct 31

Revenues (1)

$19,310

$25,163

$19,138

$18,269

$18,275

$18,290

$17,795

$17,942

Income from Continuing Operations

$ 7,149

$12,624

$ 6,519

$ 6,459

$ 6,353

$ 5,970

$ 5,758

$ 6,463

Net Income

$ 7,149

$24,168

$ 6,519

$ 6,552

$ 6,470

$ 6,094

$ 5,882

$ 6,586

Preferred Stock Dividends

(2,336)

(2,335)

(2,336)

(2,335)

(2,336)

(2,335)

(2,336)

(2,335)

Net Income Applicable to Common

and Class A Common Stockholders (2)

$ 4,813

$21,833

$ 4,183

$ 4,217

$ 4,134

$ 3,759

$ 3,546

$ 4,251

Per Share Data:
Net Income from Continuing

Operations—Basic:

Class A Common Stock
Common Stock

Net Income from Continuing

Operations—Diluted:

Class A Common Stock
Common Stock

$.20
$.18

$.19
$.17

$.42
$.38

$.41
$.37

$.17
$.15

$.16
$.15

$.16
$.14

$.17
$.15

$.16
$.15

$.15
$.13

$.14
$.13

$.14
$.12

$.17
$.15

$.16
$.15

(1) Includes settlement of lease guarantee obligation of $6 million in quarter ended April 30, 2007.
(2) Includes gains on sales of properties of $11.4 million in quarter ended April 30, 2007.

(13) SUBSEQUENT EVENTS

On December 12, 2007, the Board of Directors of the Company declared cash dividends of $0.2150 for each share of
Common Stock and $0.2375 for each share of Class A Common Stock. The dividends are payable on January 18, 2008 to
stockholders of record on January 4, 2008. The Board of Directors also ratified the actions of the Company’s compensation
committee authorizing the awards of 170,000 shares of Common Stock and 54,500 shares of Class A Common Stock to
certain key officers and directors of the Company on January 2, 2008 pursuant to the Company’s restricted stock plan. The
fair value of the shares awarded totaling $3.3 million will be charged to expense over the respective vesting periods.

In November 2007, the Company acquired a retail property containing approximately 20,000 square feet of GLA for a

cash purchase price of $6.3 million.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders of Urstadt Biddle Properties Inc.

We have audited the accompanying consolidated balance sheets of Urstadt Biddle Properties Inc. (the “Company”) as
of October 31, 2007 and 2006 and the related consolidated statements of income, stockholders’ equity, and cash flows for each
of the two years in the period ended October 31, 2007. 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 the standards of the Public Company Accounting Oversight Board (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 consolidated financial
position of Urstadt Biddle Properties Inc. at October 31, 2007 and 2006, and the consolidated results of its operations and its
cash flows for each of the two years in the period ended October 31, 2007, in conformity with accounting principles generally
accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United

States), the Company’s internal control over financial reporting as of October 31, 2007 based on criteria established in
Internal Control–Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
and our report dated January 10, 2008 expressed an unqualified opinion thereon.

New York, New York
January 10, 2008

PKF
Certified Public Accountants
A Professional Corporation

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders of Urstadt Biddle Properties Inc.

We have audited the accompanying consolidated statements of income, stockholders’ equity, and cash flows of

Urstadt Biddle Properties Inc. (the “Company”) for the year ended October 31, 2005. 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 audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (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 audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated results

of Urstadt Biddle Properties Inc.’s operations and its cash flows for the year ended October 31, 2005, in conformity with
U.S. generally accepted accounting principles.

New York, New York
January 12, 2006, except for Note 5,
as to which the date is January 10, 2008

Ernst & Young LLP

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

investments provide for relatively stable revenue flows
even during difficult economic times. Primarily as a result
of recent property acquisitions, the Company’s financial
data shows increases in total revenues and expenses from
period to period.

The Company focuses on increasing cash flow, and

consequently the value of its properties, and seeks
continued growth through strategic re-leasing, renovations
and expansion of its existing properties and selective
acquisition of income producing properties, primarily
neighborhood and community shopping centers in the
northeastern part of the United States.

Key elements of the Company’s growth strategies and

operating policies are to:

•Acquire neighborhood and community shopping

centers in the northeastern part of the United States
with a concentration in Fairfield County, Connecticut,
Westchester and Putnam Counties, New York and
Bergen County, New Jersey

•Hold core properties for long-term investment and
enhance their value through regular maintenance,
periodic renovation and capital improvement

•Selectively dispose of non-core and underperforming
properties and re-deploy the proceeds into properties
located in the northeast region

•Increase property values by aggressively marketing

available GLA and renewing existing leases

•Renovate, reconfigure or expand existing properties

to meet the needs of existing or new tenants

•Negotiate and sign leases which provide for regular

or fixed contractual increases to minimum rents

•Control property operating and administrative costs

CRITICAL ACCOUNTING POLICIES

Critical accounting policies are those that are both

important to the presentation of the Company’s
financial condition and results of operations and require
management’s most difficult, complex or subjective
judgments. Set forth below is a summary of the accounting
policies that management believes are critical to the
preparation of the consolidated financial statements. This
summary should be read in conjunction with the more
complete discussion of the Company’s accounting policies
included in Note 1 to the consolidated financial statements
of the Company.

The following discussion should be read in conjunction
with the consolidated financial statements of the Company
and the notes thereto included elsewhere in this report.

FORWARD-LOOKING STATEMENTS

This report includes certain statements that may be
deemed to be “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended. All statements, other than statements of
historical facts, included in this report that address activities,
events or developments that the Company expects, believes
or anticipates will or may occur in the future, including
such matters as future capital expenditures, dividends
and acquisitions (including the amount and nature
thereof), business strategies, expansion and growth of the
Company’s operations and other such matters are forward-
looking statements. These statements are based on certain
assumptions and analyses made by the Company in light of
its experience and its perception of historical trends, current
conditions, expected future developments and other factors
it believes are appropriate. Such statements are subject
to a number of assumptions, risks and uncertainties,
general economic and business conditions, the business
opportunities that may be presented to and pursued by the
Company, changes in laws or regulations and other factors,
many of which are beyond the control of the Company. Any
such statements are not guarantees of future performance
and actual results or developments may differ materially
from those anticipated in the forward-looking statements.

EXECUTIVE SUMMARY

The Company, a REIT, is a fully integrated, self-administered

real estate company, 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 real estate assets
include office and industrial properties. The Company’s major
tenants include supermarket chains and other retailers who
sell basic necessities. At October 31, 2007, the Company
owned or had interests in thirty-nine properties containing a
total of 3.7 million square feet of GLA of which approximately
96% was leased.

The Company derives substantially all of its revenues

from rents and operating expense reimbursements
received pursuant to long-term leases and focuses its
investment activities on community and neighborhood
shopping centers, anchored principally by regional
supermarket chains. The Company believes, because of
the need of consumers to purchase food and other staple
goods and services generally available at supermarket-
anchored shopping centers, that the nature of its

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

Revenue Recognition

The Company records base rents on a straight-line basis
over the term of each lease. The excess of rents recognized
over amounts contractually due pursuant to the underlying
leases is included in tenant receivables on the accompanying
balance sheets. Most leases contain provisions that require
tenants to reimburse a pro-rata share of real estate taxes and
certain common area expenses. Adjustments are also made
throughout the year to tenant receivables and the related
cost recovery income based upon the Company’s best
estimate of the final amounts to be billed and collected.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is established based

on a quarterly analysis of the risk of loss on specific
accounts. The analysis places particular emphasis on past-
due accounts and considers information such as the nature
and age of the receivables, the payment history of the
tenants or other debtors, the financial condition of the
tenants and any guarantors and management’s assessment
of their ability to meet their lease obligations, the basis for
any disputes and the status of related negotiations, among
other things. Management’s estimate of the required
allowance is subject to revision as these factors change and
is sensitive to the effects of economic and market conditions
on tenants, particularly those at retail properties. Estimates
are used to establish reimbursements from tenants for
common area maintenance, real estate tax and insurance
costs. The Company analyzes the balance of its estimated
accounts receivable for real estate taxes, common area
maintenance and insurance for each of its properties by
comparing actual recoveries versus actual expenses and any
actual write-offs. Based on its analysis, the Company may
record an additional amount in its allowance for doubtful
accounts related to these items. It is also the Company’s
policy to maintain an allowance of approximately 10% of
the deferred straight-line rents receivable balance for future
tenant credit losses.

Real Estate

Land, buildings, property improvements, furniture/fixtures

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

The amounts to be capitalized as a result of an acquisition

and the periods over which the assets are depreciated or
amortized are determined based on estimates as to fair
value and the allocation of various costs to the individual
assets. The Company allocates the cost of an acquisition

based upon the estimated fair value of the net assets
acquired. The Company also estimates the fair value of
intangibles related to its acquisitions. The valuation of the
fair value of intangibles involves estimates related to
market conditions, probability of lease renewals and the
current market value of in-place leases. This market value
is determined by considering factors such as the tenant’s
industry, location within the property and competition in
the specific region in which the property operates.
Differences in the amount attributed to the intangible assets
can be significant based upon the assumptions made in
calculating these estimates.

The Company is required to make subjective assessments as

to the useful life of its properties for purposes of determining
the amount of depreciation. These assessments have a direct
impact on the Company’s net income.

Properties are depreciated using the straight-line method
over the estimated useful lives of the assets. The estimated
useful lives are as follows:

Buildings
Property Improvements
Furniture/Fixtures
Tenant Improvements

30-40 years
10-20 years
3-10 years
Shorter of lease term
or useful life

Asset Impairment

On a periodic basis, management assesses whether
there are any indicators that the value of the real estate
properties may be impaired. A property value is
considered impaired when management’s estimate of
current and projected operating cash flows (undiscounted
and without interest) of the property over its remaining
useful life is less than the net carrying value of the
property. Such cash flow projections consider factors such
as expected future operating income, trends and
prospects, as well as the effects of demand, competition
and other factors. To the extent impairment has occurred,
the loss is measured as the excess of the net carrying
amount of the property over the fair value of the asset.
Changes in estimated future cash flows due to changes in
the Company’s plans or market and economic conditions
could result in recognition of impairment losses which
could be substantial. Management does not believe that
the value of any of its rental properties is impaired at
October 31, 2007.

LIQUIDITY AND CAPITAL RESOURCES

At October 31, 2007, the Company had unrestricted cash

and cash equivalents of $4.2 million compared to $2.8
million at October 31, 2006. The Company’s sources of
liquidity and capital resources include its cash and cash
equivalents, proceeds from bank borrowings and long-
term mortgage debt, capital financings and sales of real
estate investments. 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.

Cash Flows

The Company expects to meet its short-term liquidity
requirements primarily by generating net cash from the
operations of its properties. The Company believes that its
net cash provided by operations will be sufficient to fund
its short-term liquidity requirements for fiscal 2008 and to
meet its dividend requirements necessary to maintain its
REIT status. In fiscal 2007, 2006 and 2005, net cash flow
provided by operations amounted to $49.3 million, $35.4
million and $35.5 million, respectively. Cash dividends
paid on common and preferred shares increased to $33.1
million in fiscal 2007 compared to $32.4 million in fiscal
2006 and $29.4 million in fiscal 2005.

The Company expects to continue paying regular

dividends to its stockholders. These dividends will be paid
from operating cash flows which are expected to increase
due to property acquisitions and growth in operating
income in the existing portfolio and from other sources. The
Company derives substantially all of its revenues from base
rents under existing leases at its properties. The Company’s
operating cash flow therefore depends on the rents that it is
able to charge to its tenants, and the ability of its tenants to
make rental payments. The Company believes that the
nature of the properties in which it typically invests—
primarily grocery-anchored neighborhood and community
shopping centers—provides a more stable revenue flow in
uncertain economic times, in that consumers still need to
purchase basic staples and convenience items. However,
even in the geographic areas in which the Company owns
properties, general economic downturns may adversely
impact the ability of the Company’s tenants to make lease
payments and the Company’s ability to re-lease space as
leases expire. In either of these cases, the Company’s cash
flow could be adversely affected.

URSTADT BIDDLE PROPERTIES INC.

Net Cash Flows From:

Operating Activities

Net cash flows provided by operating activities amounted

to $49.3 million in fiscal 2007, compared to $35.4 million in
fiscal 2006 and $35.5 million in fiscal 2005. The changes in
operating cash flows were primarily due to increases in the
net operating results generated from the Company’s
properties and operating cash flows from new properties
acquired during those periods and in 2007, the receipt of
a $6 million settlement of a lease guarantee obligation.

Investing Activities

Net cash flows used in investing activities were $19.5
million in fiscal 2007, $20.1 million in fiscal 2006 and $61.3
million in fiscal 2005. The net cash flows in each of these
years were principally due to the acquisition of properties
consistent with the Company’s strategic plan to acquire
properties in the northeast and the acquisition of limited
partner interests in consolidated joint ventures. The
Company acquired two properties in fiscal 2007, three
retail properties in fiscal 2006 and two shopping centers in
fiscal 2005. In fiscal 2007, the Company also acquired the
remaining limited partnership interest in its Eastchester
property for $2.8 million. In fiscal 2007, the Company sold
one property for $13.2 million and two properties in fiscal
2005 for $17.8 million. Sale proceeds were used to
purchase additional properties in the northeast. The
Company also invests in its properties and regularly pays
for capital expenditures for property improvements,
tenant costs and leasing commissions.

Financing Activities

Net cash flows used in financing activities were $28.4
million in fiscal 2007 and $39.0 million in fiscal 2006. Net
cash flows provided by financing activities in fiscal 2005
were $26.4 million and reflect net proceeds of $59.4 million
from the sale of a new issue of Series D preferred stock in
that year. Net cash flows used in financing activities in
each of the fiscal years 2007, 2006 and 2005 reflect
distributions to its shareholders each year of $33.1 million
in fiscal 2007, $32.4 million in fiscal 2006 and $29.4 million
in fiscal 2005. The Company also borrowed funds under its
revolving credit line facility in each of the three years
ended October 31, 2007 primarily to finance the purchase
of property or for working capital during the periods.

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

Capital Resources

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 properties and/or the
issuance of equity securities. The Company believes that
these sources of capital will continue to be available to it in
the future to fund its long-term capital needs; however,
there are certain factors that may have a material adverse
effect on its access to capital sources. The Company’s
ability to incur additional debt is dependent upon its
existing leverage, the value of its unencumbered assets and
borrowing limitations imposed by existing lenders. The
Company’s ability to raise funds through sales of equity
securities is dependent on, among other things, general
market conditions for REITs, market perceptions about the
Company and its stock price in the market. The Company’s
ability to sell properties in the future to raise cash will be
dependent upon market conditions at the time of sale.

Financings and Debt

The Company is exposed to interest rate risk primarily
through its borrowing activities. There is inherent rollover
risk for borrowings as they mature and are renewed at
current market rates. The extent of this risk is not
quantifiable or predictable because of the variability of
future interest rates and the Company’s future financing
requirements. Mortgage notes payable of $96.3 million
consist of fixed rate mortgage loan indebtedness with a
weighted average interest rate of 6.1% at October 31, 2007.
The mortgage loans are secured by fifteen properties with a
net book value of $169 million and have fixed rates of
interest ranging from 5.52% to 7.78%. The Company made
principal payments of $8.1 million (including the repayment
of $5.6 million in mortgages that matured) in fiscal 2007
compared to $7.4 million (including the repayment of $4.975
million in mortgages that matured) in fiscal 2006 and $4.2
million in fiscal 2005. The Company may refinance its
mortgage loans, at or prior to scheduled maturity, through
replacement mortgage loans. The ability to do so, however,
is dependent upon various factors, including the income
level of the properties, interest rates and credit conditions
within the commercial real estate market. Accordingly, there
can be no assurance that such refinancings can be achieved.

In fiscal 2007, the Company entered into an agreement

with a bank to extend the non-recourse mortgage note
payable on the Ridgeway Shopping Center in Stamford,
Connecticut with an outstanding principal balance of
approximately $52.5 million for a 10-year term and reset
the fixed interest rate from 7.54% to 5.52% commencing
October 1, 2007.

At October 31, 2007, the Company had a secured revolving

credit facility with a commercial bank (the “Secured Credit
Facility”) which provides for borrowings of up to $30
million. The Secured Credit Facility expires in April 2008
and is collateralized by first mortgage liens on two of the
Company’s properties. Interest on outstanding borrowings
is at prime + 1/2% or LIBOR + 1.5%. The Secured Credit
Facility requires the Company to maintain certain debt
service coverage ratios during its term. The Company pays
an annual fee of 0.25% on the unused portion of the Secured
Credit Facility. The Secured Credit Facility is available to fund
acquisitions, capital expenditures, mortgage repayments,
working capital and other general corporate purposes.
During fiscal 2007, the Company borrowed $14.2 million
and repaid $2.0 million and had outstanding variable rate
borrowings of $12.2 million at October 31, 2007 at interest
rates ranging from 6.39% to 6.68%. There were no variable
rate borrowings outstanding at October 31, 2006. During
fiscal 2006, the Company borrowed and repaid $3 million
under the secured credit line. Prior to June 2006, the
Company also had a $30 million unsecured line of credit
(“Unsecured Credit Line”) arrangement with the same bank.
During 2006, the Company terminated the Unsecured Credit
Line. There were no borrowings outstanding on this credit
line at the date of termination.

On October 24, 2007, the Company signed a commitment
letter with a major commercial bank to act as administrative
agent and sole lead arranger of a $50 million senior
unsecured revolving credit facility (the “Facility”). The
Facility is to be used for working capital, general corporate
and other purposes. The Facility will contain certain terms,
conditions and covenants customary for facilities of this
type. The entering into and closing of the Facility is subject
to certain conditions including negotiation of a definitive
credit agreement with the bank.

Contractual Obligations

The Company’s contractual payment obligations as of
October 31, 2007 were as follows (amounts in thousands):

Payments Due by Period

Total

2008

2009

2010

2011

2012

There-
after

Mortgage
notes
payable

Tenant
obligations*

Total
Contractual
Obligations

$96,282 $13,066 $18,542 $6,289 $5,083 $4,796 $48,506

765

—

$97,047 $13,831 $18,542 $6,289 $5,083 $4,796 $48,506

*Committed tenant-related obligations based on executed leases as of
October 31, 2007.

The Company has various standing or renewable service
contracts with vendors related to its property management.
In addition, the Company also has certain other utility
contracts entered into in the ordinary course of business
which may extend beyond one year, which vary based on
usage. These contracts include terms that provide for
cancellation with insignificant or no cancellation penalties.
Contract terms are generally one year or less.

Off-Balance Sheet Arrangements

During the years ended October 31, 2007 and 2006,

the Company did not have any material off-balance
sheet arrangements.

Capital Expenditures

The Company invests in its existing properties and

regularly incurs capital expenditures in the ordinary course
of business to maintain its properties. The Company believes
that such expenditures enhance the competitiveness of its
properties. In fiscal 2007, the Company paid approximately
$8.1 million for property improvements, (including $3.2
million for the redevelopment of a tenant space at The Dock
Shopping Center in Stratford, Connecticut (see below))
tenant improvement and leasing commission costs. The
amounts of these expenditures can vary significantly
depending on tenant negotiations, market conditions and
rental rates. The Company expects to incur approximately
$7.2 million for anticipated capital improvements and
leasing costs in fiscal 2008. These expenditures are expected
to be funded from operating cash flows or bank borrowings.

URSTADT BIDDLE PROPERTIES INC.

Acquisitions and Significant Property Transactions

The Company seeks to acquire properties which are
primarily shopping centers located in the northeastern
part of the United States with a concentration in Fairfield
County, Connecticut, Westchester and Putnam Counties,
New York and Bergen County, New Jersey.

In January 2007, the Company acquired a 10,100 square

foot shopping center located in Monroe, Connecticut
(“Monroe”) for $3.8 million including closing costs.
In April 2007, the Company acquired the Emerson

Shopping Plaza (“Emerson”), a 92,000 square foot shopping
center located in Emerson, New Jersey for a purchase price
of approximately $17.5 million, including closing costs.

In August 2007, the Company purchased all of the limited
partner operating partnership units (OPU’s) in a consolidated
partnership that owned The Shoppes at Eastchester, in
Eastchester, New York for $2.8 million. Prior to the purchase
the Company was the sole general partner in the partnership.
As a result of the purchase, the partnership terminated and
the property is now directly owned by the Company.

In January 2007, the Company entered into a lease with a
wholesale club to lease approximately 107,000 square feet of
space at The Dock Shopping Center, Stratford, Connecticut,
subject to certain conditions. In connection with the new
lease, the Company agreed to provide up to $6.75 million
toward the costs of redeveloping the space that previously
had been occupied by a tenant who, in a prior year, filed a
petition in bankruptcy and vacated the space. The former
tenant’s lease obligation was guaranteed through 2016 by a
corporate guarantor previously affiliated with the former
tenant. In February 2007, the Company executed a settlement
agreement with the guarantor whereby the guarantor was
released from its obligations in exchange for a payment to
the Company of $6 million that was received this year.

In May 2007, the Company formed a limited liability

company (“LLC”) to acquire by contribution, a 20%
economic interest in a general partnership which owns a
retail/office property in Westchester County, New York.
Simultaneously, the Company contributed one of its wholly-
owned retail properties in Westchester County, New York
into the LLC. As a result of the contributions, the Company
owns approximately 76% of the LLC, the accounts of which
are included in the accompanying consolidated financial
statements at October 31, 2007. The Company has recorded
the non controlling member’s share of the net assets of the
LLC of $546,000 in minority interests, in the accompanying
October 31, 2007 consolidated balance sheet. The Company
has, among other things, guaranteed a preferential return to
the other member of the LLC of $36,000 per annum.

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

In fiscal 2006, the Company acquired three retail
properties totaling 50,000 square feet of GLA at an
aggregate purchase price of $16.6 million.

In fiscal 2005, the Company purchased Staples Plaza, a

200,000 square foot shopping center in Yorktown, New
York for $28.5 million, including the assumption of a first
mortgage loan at its estimated fair value of $8.5 million.
The Company also purchased The Dock, a 269,000 square
feet of GLA shopping center located in Stratford,
Connecticut for $51.1 million.

Sales of Properties

In fiscal 2007, the Company sold its Tempe, Arizona
property for a sale price of $13.2 million. The proceeds
were used to complete the acquisition of the Emerson,
New Jersey property. The Company recorded a gain on
sale of approximately $11.4 million.

In fiscal 2005, the Company sold its Farmingdale, New
York property for a sale price of $9.75 million. The proceeds
were used to complete the acquisition of The Dock. The
Company recorded a gain on the sale of approximately
$5.6 million. The Company also sold in fiscal 2005 an office
building in Southfield, Michigan for a sale price of $9.2
million and recorded a gain on the sale of $1.4 million.

NON-CORE PROPERTIES

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 the sale of the Company’s non-core properties
in the normal course of business over a period of several
years. The non-core properties consist of two distribution
service facilities (both of which are located outside of the
northeast region of the United States).

The Company intends to sell its remaining non-core

properties as opportunities become available. The
Company’s ability to generate cash from asset sales is
dependent upon market conditions and will be limited if
market conditions make such sales unattractive. In fiscal
2007, the Company sold a non-core property for $13.2
million and recorded a gain on sale of the property of $11.4
million. There were no sales of non-core properties in fiscal
2006. At October 31, 2007, the two remaining non-core
properties have a net book value of approximately $726,000.

FUNDS FROM OPERATIONS

The Company considers Funds from Operations (“FFO”)

to be an additional measure of an equity REIT’s operating
performance. The Company reports FFO in addition to its
net income applicable to common stockholders and net
cash provided by operating activities. Management has
adopted the definition suggested by The National
Association of Real Estate Investment Trusts (“NAREIT”)
and defines FFO to mean net income (computed in

accordance with generally accepted accounting principles
(“GAAP”) excluding gains or losses from sales of property,
plus real estate related depreciation and amortization and
after adjustments for unconsolidated joint ventures.

Management considers FFO a meaningful, additional
measure of operating performance because it primarily
excludes the assumption that the value of its real estate
assets diminishes predictably over time and industry
analysts have accepted it as a performance measure.
FFO is presented to assist investors in analyzing the
performance of the Company. It is helpful as it excludes
various items included in net income that are not
indicative of the Company’s operating performance,
such as gains (or losses) from sales of property and
depreciation and amortization.

However, FFO:

• does not represent cash flows from operating

activities in accordance with GAAP (which, unlike
FFO, generally reflects all cash effects of transactions
and other events in the determination of net income);
and

• should not be considered an alternative to net income

as an indication of the Company’s performance.

FFO as defined by us may not be comparable to similarly

titled items reported by other real estate investment trusts
due to possible differences in the application of the NAREIT
definition used by such REITs. The table below provides a
reconciliation of net income applicable to Common and
Class A Common Stockholders in accordance with GAAP
to FFO for each of the three years in the period ended
October 31, 2007 (amounts in thousands).

Year Ended October 31,
2007
2006

2005

Net Income Applicable to Common

and Class A Common Stockholders

$ 35,046

$ 15,690

$ 23,976

Plus: Real property depreciation

10,530

9,981

9,003

Amortization of tenant improvements

and allowances

Amortization of deferred leasing costs
Depreciation and amortization on

2,267
564

2,450
557

2,325
555

discontinued operations

Less: Gains on sales of properties

40
(11,385)

170
—

516
(7,020)

Funds from Operations Applicable

to Common and Class A Common
Stockholders

Net Cash Provided by (Used in):

Operating Activities
Investing Activities
Financing Activities

$ 37,062

$ 28,848

$ 29,355

$ 49,307
$ 35,505
$ 35,429
$(19,457) $(20,129) $(61,348)
$ 28,432
$(38,994) $ 26,397

URSTADT BIDDLE PROPERTIES INC.

FFO amounted to $37.1 million in fiscal 2007 compared

to $28.8 million in fiscal 2006 compared to $29.4 million
in fiscal 2005. The increase in FFO in fiscal 2007 reflects
an increase in operating income from properties owned
during the period and recent property acquisitions and
the receipt of $6 million from the settlement of a lease
guarantee on a tenant space in The Dock shopping center
in Stratford, Connecticut. The decrease in FFO in fiscal

2006 reflects an increase in operating income from
properties owned during the period and recent property
acquisitions offset by an increase in preferred stock
dividends paid on a new Series D Preferred Stock issue
and the temporary investment of the remaining proceeds
of the Series D Preferred stock sale into lower yielding
short-term investments. See discussion which follows.

RESULTS OF OPERATIONS

Fiscal 2007 vs. Fiscal 2006

The following information summarizes the Company’s results of operations for the year ended October 31, 2007 and

2006 (amounts in thousands):

Year Ended October 31,

Change Attributable to:

2007

2006

Increase
(Decrease)

Property
Change Acquisitions

Properties Held
In Both Periods

Revenues
Base rents
Recoveries from tenants
Mortgage interest and other

Operating Expenses
Property operating
Property taxes
Depreciation and amortization
General and administrative

Non-Operating Income/Expense
Interest expense
Interest, dividends, and other

investment income

$57,260
17,660
845

$54,862
16,957
408

$2,398
703
437

4.4%
4.1%
107.1%

$1,216
483
11

12,109
10,926
13,442
4,979

7,773

501

11,666
10,262
13,073
4,981

8,287

950

443
664
369
(2)

(514)

(449)

3.8%
6.5%
2.8%
—

(6.2)%

(47.3)%

175
270
407
n/a

—

n/a

$1,182
220
426

268
394
(38)
n/a

(514)

n/a

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

Revenues

Base rents increased by 4.4% to $57.3 million in fiscal
2007 as compared with $54.9 million in the comparable
period of 2006. The increase in base rentals was
attributable to the property acquisitions and properties
held in both periods as discussed below.

Property Acquisitions:

In fiscal 2007, the Company acquired two properties

totaling 102,100 square feet of GLA. These properties
accounted for all of the revenue, operating expense, property
tax, and depreciation and amortization changes attributable
to property acquisitions during the fiscal year ended 2007.

Properties Held in Both Periods:

Revenues

The increase in base rents for properties held during the
fiscal period ended October 31, 2007 reflects an increase in
rental rates for in place leases over the period. In fiscal 2007,
the Company leased or renewed approximately 553,000
square feet (or approximately 15% of total property leasable
area). At October 31, 2007, the Company’s core properties
were approximately 96% leased. Overall core property
occupancy rates increased from 93.3% at October 31, 2006
to 95.4% at October 31, 2007.

For the fiscal year ended 2007, recoveries from tenants
for properties owned in both periods (which represents
reimbursements from tenants for operating expenses and
property taxes) increased by $220,000 compared to the
same period in fiscal 2006. This increase was a result of
an increase in real estate tax recoveries caused by an
approximate 4.0% increase in property tax expense in
properties held in both periods and higher property tax
recovery rates at certain properties. Recoveries from
tenants for common area maintenance was unchanged
in fiscal 2007 when compared with fiscal 2006.

During fiscal 2007, the Company executed a settlement
agreement with the corporate guarantor of a former tenant’s
lease obligations whereby the guarantor was released from
its obligations to the Company in exchange for a payment of
$6 million. The payment and release of guarantee were
subject to certain conditions contained in the agreement. The
conditions were satisfied on April 15, 2007 and the payment
was recorded as income from a settlement of lease guarantee
obligation in the fiscal year ended October 31, 2007.

The Company’s single largest real estate investment is

the Ridgeway Shopping Center located in Stamford,
Connecticut (which is owned by a consolidated joint
venture in which the Company has a 90% controlling
interest). Ridgeway’s revenues represented approximately
$11.0 million or 14% of total revenues in fiscal 2007
compared to $10.3 million or 14% in fiscal 2006. At
October 31, 2007, the property was 95% leased. No other
property in the Company’s portfolio comprised more
than 10% of the Company’s consolidated revenues in
fiscal 2007.

Operating Expenses

Operating expenses increases were a result of property

acquisitions as discussed above and properties held in
both periods as more fully discussed below:

Property operating expenses for properties held in both

periods increased $268,000 in the fiscal year ended October 31,
2007 primarily as a result of increased utility costs and repairs
to utility systems, landscaping at some of the Company’s
properties, and parking area maintenance expenses.

Property taxes for properties held in both periods increased

by $394,000 or 4% in fiscal 2007 from higher real estate tax
assessment rates at the Company’s properties.

There was relatively no change in depreciation and
amortization for properties held in both periods for the
fiscal period ended October 31, 2007 when compared to
fiscal 2006.

General and administrative expenses were unchanged

for the fiscal period ended October 31, 2007.

Non-Operating Income/Expense

Interest, dividends and other investment income

decreased by $449,000 in the fiscal period ended October
31, 2007. The decrease in this component of income reflects
the use of available cash in 2006 that was invested in
highly liquid securities for the purchase of properties
during fiscal 2006 and 2007.

Interest expense decreased by $514,000 in fiscal 2007
from scheduled principal payments on mortgage notes,
the repayments of mortgage notes of $5,600,000 and
$4,975,000 during fiscal 2007 and 2006, respectively, and a
decrease in credit line facility fees after the termination of
the Company’s unsecured revolving bank credit line in
June 2006.

URSTADT BIDDLE PROPERTIES INC.

Fiscal 2006 vs. Fiscal 2005

Revenues
Base rents
Recoveries from tenants
Mortgage interest and other

Operating Expenses
Property operating
Property taxes
Depreciation and amortization
General and administrative

Non-Operating Income/Expense
Interest expense
Interest, dividends, and other

investment income

Year Ended October 31,

Change Attributable to:

2006

2005

Increase
(Decrease)

Property
Change Acquisitions

Properties Held
In Both Periods

$54,862
16,957
408

$51,383
16,444
291

$3,479
513
117

11,666
10,262
13,073
4,981

8,287

950

10,785
9,211
11,884
5,155

8,502

731

881
1,051
1,189
(174)

(215)

219

6.8%
3.1%
40.2%

8.2%
11.4%
10.0%
(3.4)%

(2.5)%

30.0%

$3,215
706
(82)

570
740
774
n/a

322

n/a

$ 264
(193)
199

311
311
415
n/a

(537)

n/a

Operating Expenses

Property operating expenses for properties held in both
periods increased by $311,000 in fiscal 2006 when compared
with fiscal 2005 from an increase in certain property expense
categories, particularly repairs, maintenance and utility
expenses, that increased this component of expenses by
approximately $800,000 in fiscal 2006. The increase in
expenses in fiscal 2006 was partially offset by a decrease
of approximately $300,000 in insurance and snow removal
costs in that year.

Property taxes for properties held in both periods

increased by $311,000 or 3% in fiscal 2006 when compared
with fiscal 2005 from higher real estate tax assessment
rates at the Company’s properties.

Depreciation and amortization expense from properties
held in both periods increased $415,000 in fiscal 2006 when
compared with fiscal 2005, principally from the write off of
unamortized tenant improvement costs of $319,000 related to
several tenants that vacated the properties during the year.

General and administrative expenses (“G&A”) decreased

by $174,000 in fiscal 2006 when compared with fiscal 2005
primarily from lower professional fees related to the
Company’s internal controls assessment required by
Section 404 of Sarbanes-Oxley Act which decreased G&A
by $443,000 in fiscal 2006. The decrease in G&A was offset
by higher employee compensation costs which increased
this component of expense by $415,000 in fiscal 2006.

Revenues

Base rents increased by 6.8% to $54.9 million in fiscal 2006

as compared with $51.4 million in fiscal 2005. The increase
in base rentals was attributable to the property acquisitions
and properties held in both periods as discussed below.

Property Acquisitions:

In fiscal 2006, the Company acquired three properties
totaling 50,000 square feet of GLA and two retail properties
totaling 469,000 square feet of GLA during fiscal 2005.
These properties accounted for all of the revenue, operating
expense, property tax, interest expense, and depreciation
and amortization changes attributable to property acquisitions
during fiscal 2006.

Properties Held in Both Periods:

Revenues

Base rents from properties held in both periods increased
$264,000 in fiscal 2006 compared to fiscal 2005. The increase
in base rents from new leases and lease renewals completed
during fiscal 2006 was impacted by unexpected tenant
vacancies during the same period that lowered revenues by
approximately $500,000. At October 31, 2006, the overall
leased percentage of the Company’s core properties was 97%,
a decline of 1% from the prior year. The Company executed
new leases or renewed leases comprising 297,000 square feet
of GLA during fiscal 2006.

Recoveries from tenants from properties held in both
periods (which represent reimbursements from tenants for
operating expenses and property taxes) decreased $193,000
in fiscal 2006 compared to the prior year due to slightly
lower occupancy levels during fiscal 2006 when compared
with fiscal 2005.

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

Non-Operating Income/Expense

Interest, dividends and other investment income increased
by $219,000 in fiscal 2006 from higher rates of return earned
on marketable securities and short-term investments during
the period. Other investment income also includes gains on
sales of marketable securities of $122,000 in fiscal 2006
compared to $70,000 in fiscal 2005.

Mortgage interest and other income in fiscal 2006 includes

a gain of $102,000 from the repayment of a mortgage note
receivable during the year.

Interest expense for properties held in both periods
decreased $537,000 in fiscal 2006 when compared with
fiscal 2005 principally from the repayment of mortgage
notes payable and bank credit line borrowings in fiscal
2005 that were repaid later in the year. In connection with
one acquisition in fiscal 2005, the Company assumed an
$8.5 million first mortgage loan that increased interest
expense in fiscal 2006 by $322,000.

DISCONTINUED OPERATIONS

In fiscal 2007, the Company sold its Tempe, Arizona
property for a sale price of $13.2 million. Accordingly, the
operating results for this property were classified as
discontinued operations in the accompanying consolidated
statements of income for the year ended October 31, 2007.
In connection with the sale of the property, the Company
recorded a gain on sale of approximately $11.4 million.

During fiscal 2005, the Company sold a shopping center

in Farmingdale, New York for $9.75 million and an office
building in Southfield, Michigan for $9.175 million.
Accordingly, the operating results for these properties were
classified as discontinued operations in the accompanying
consolidated statements of income for the year ended
October 31, 2005. In connection with the sales of the
properties, the Company recorded gains on sales of
properties of $7.0 million in fiscal 2005.

Revenues from discontinued operations were $320,000,
$747,000 and $2.5 million for the years ended October 31,
2007, 2006 and 2005, respectively.

INFLATION

The Company’s long-term leases contain provisions to
mitigate the adverse impact of inflation on its operating
results. Such provisions include clauses entitling the
Company to receive (a) scheduled base rent increases and
(b) percentage rents based upon tenants’ gross sales, which
generally increase as prices rise. In addition, many of the
Company’s non-anchor leases are for terms of less than ten
years, which permits the Company to seek increases in
rents upon renewal at then current market rates if rents
provided in the expiring leases are below then existing
market rates. Most of the Company’s leases require tenants
to pay a share of operating expenses, including common
area maintenance, real estate taxes, insurance and utilities,
thereby reducing the Company’s exposure to increases in
costs and operating expenses resulting from inflation.

ENVIRONMENTAL MATTERS

Based upon management’s ongoing review of its

properties, management is not aware of any environmental
condition with respect to any of the Company’s properties
that would be reasonably likely to have a material adverse
effect on the Company. There can be no assurance, however,
that (a) the discovery of environmental conditions, which
were previously unknown, (b) changes in law, (c) the
conduct of tenants or (d) activities relating to properties in
the vicinity of the Company’s properties, will not expose the
Company to material liability in the future. Changes in laws
increasing the potential liability for environmental
conditions existing on properties or increasing the
restrictions on discharges or other conditions may result in
significant unanticipated expenditures or may otherwise
adversely affect the operations of the Company’s tenants,
which would adversely affect the Company’s financial
condition and results of operations.

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management of the Company is responsible for establishing and maintaining adequate internal control over financial

reporting as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. The
Company’s internal control over financial reporting is a process designed by, or under the supervision of, the Company’s
Chief Executive Officer and Chief Financial Officer and effected by the Company’s Board of Directors, management and
other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements in accordance with generally accepted accounting principles.

The Company’s internal control over financial reporting include policies and procedures that: relate to the maintenance

of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the
Company; provide reasonable assurance of the recording of all transactions necessary to permit the preparation of the
Company’s consolidated financial statements in accordance with generally accepted accounting principles and the proper
authorization of receipts and expenditures in accordance with authorization of the Company’s management and directors;
and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or
disposition of the Company’s assets that could have a material effect on the Company’s consolidated financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,

projection of any evaluation of effectiveness to future periods is subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

Management assessed the effectiveness of the Company’s internal control over financial reporting as of October 31,

2007. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of
the Treadway Commission (“COSO”) in Internal Control–Integrated Framework. Based on its assessment, management
determined that the Company’s internal control over financial reporting was effective as of October 31, 2007.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders of Urstadt Biddle Properties Inc.

We have audited Urstadt Biddle Properties Inc.’s internal control over financial reporting as of October 31, 2007, based on
criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (the “COSO criteria”). Urstadt Biddle Properties Inc.’s management is responsible for maintaining
effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial
reporting, included in the accompanying management’s report on Internal Control Over Financial Reporting. Our responsibility
is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective
internal control over financial reporting was maintained in all material respects. Our audit included obtaining an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk and performing such
other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis
for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles; (3) that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (4) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use,
or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,

projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Urstadt Biddle Properties Inc. maintained, in all material respects, effective internal control over financial

reporting as of October 31, 2007 based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States), the consolidated balance sheets of Urstadt Biddle Properties Inc. as of October 31, 2007 and 2006, and the related
consolidated statements of income, stockholders’ equity, and cash flows for each of the two years then ended and our
report dated January 10, 2008 expressed an unqualified opinion thereon.

New York, New York
January 10, 2008

PKF
Certified Public Accountants
A Professional Corporation

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 90% of such taxable income is distributed. The Company has distributed all of its taxable
income for fiscal 2007 and, accordingly, no provision has been made for federal income taxes.

INCOME TAX INFORMATION

The tax status for federal income tax purposes of the dividends paid by the Company during fiscal 2007 is

as follows:

Common and Class A Common Shares:

Dividend
Payment Date
January 19, 2007
April 20, 2007
July 20, 2007
October 19, 2007

Total

Preferred Shares:*

Dividend
Payment Date
January 31, 2007
April 30, 2007
July 31, 2007
October 31, 2007

Total

Common Share
Gross
Dividend

Paid Ordinary
Income
$.2075
$.2075
$.2075
$.2075
$.83

Per Share
$.2075
$.2075
$.2075
$.2075
$.83

Class A Common Share

Gross
Dividend

Paid Ordinary
Income
$.23
$.23
$.23
$.23
$.92

Per Share
$.23
$.23
$.23
$.23
$.92

Series B
Preferred Share
$2.2475
$2.2475
$2.2475
$2.2475
$8.99

Series C
Preferred Share
$2.1250
$2.1250
$2.1250
$2.1250
$8.50

Series D
Preferred Share
$ .46875
$ .46875
$ .46875
$ .46875
$1.875

*All dividends paid during 2007 on shares of Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock were ordinary
income for federal income tax purposes.

MARKET PRICE RANGES

The following sets forth, for the fiscal years ended October 31, 2007 and 2006, the low and high closing sales

price per Common Share and Class A Common Share as quoted on The New York Stock Exchange.

Common Shares and Class A Common Shares trade on the New York Stock Exchange under the Symbols:

“UBP” and “UBA.”

Common Shares:
First Quarter
Second Quarter
Third Quarter
Fourth Quarter

Class A Common Shares:
First Quarter
Second Quarter
Third Quarter
Fourth Quarter

Fiscal 2007
Low

High

$16.70 – $18.25
$17.02 – $18.46
$16.35 – $18.45
$16.15 – $18.31

$17.82 – $19.43
$17.81 – $19.62
$15.10 – $18.81
$14.97 – $17.91

Fiscal 2006

Low

High

$15.70 – $17.73
$16.22 – $17.40
$15.54 – $16.76
$15.50 – $18.60

$15.60 – $17.83
$16.25 – $18.40
$15.58 – $17.10
$16.04 – $19.44

PERFORMANCE GRAPH

The following graph compares, for the five-year period beginning October 31, 2002 and ended October 31, 2007,
the Company’s cumulative total return to holders of the Company’s Class A Common Shares and Common Shares
with the returns for the NAREIT All—REIT Total Return Index (a peer group index) published by the National
Association of Real Estate Investment Trusts (NAREIT) and for the S&P 500 Index for the same period.

Urstadt Biddle Properties Inc.—Class A (UBA)
Urstadt Biddle Properties Inc.—Common (UBP)
S&P 500 Index
NAREIT All—REIT Index

10/02
100.00
100.00
100.00
100.00

10/03
132.58
123.40
120.80
135.42

10/04
166.61
151.96
132.18
174.04

10/05
181.18
181.70
143.71
198.58

10/06
220.27
199.33
167.19
269.19

10/07
201.60
198.70
191.54
261.32

The stock price performance shown on the graph is not necessarily indicative of future price performance.

CERTIFICATIONS

Following the March 2007 annual meeting of shareholders, the annual certification of the Chief Executive Officer

regarding compliance by the Company with the corporate governance listing standards of the New York Stock
Exchange (“NYSE”) was submitted without qualification to the NYSE. In addition, as required by the Sarbanes-Oxley
Act of 2002, the Company filed with the Securities and Exchange Commission the CEO and CFO certifications
regarding the quality of the Company’s public disclosure as Exhibits 31.1 and 31.2 to its Annual Report on Form 10-K
for the year ended October 31, 2007.

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
ROBERT J. MUELLER
Retired Senior Executive Vice President
The Bank of New York
CHARLES D. URSTADT
Executive Director of Sales
Halstead Property LLC
GEORGE J. VOJTA
Retired Vice Chairman
Bankers Trust Company

DIRECTORS EMERITI

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, Co-Counsel and Assistant Secretary
THOMAS D. MYERS
Senior Vice President, Co-Counsel and Secretary
LINDA L. LACEY
Senior Vice President, Leasing
JAMES M. ARIES
Senior Vice President, Acquisitions and Leasing
WAYNE W. WIRTH
Senior Vice President, Management
JOHN T. HAYES
Vice President, Controller
HEIDI R. BRAMANTE
Assistant Vice President and Assistant Controller
LUISA CAYCEDO-KIMURA
Assistant Vice President and Assistant Secretary
ANDREW ALBRECHT
Assistant Vice President, Management

SUZANNE MOORE
Assistant Vice President

Securities Traded
New York Stock Exchange
Symbols: UBA, UBP, UBPPRC and UBPPRD
Stockholders of Record as of December 31, 2007:
Common Stock: 1,118 and Class A Common Stock: 1,121

Annual Meeting
The annual meeting of stockholders will be held
at 2:00 P.M. on March 6, 2008 at the Stamford Marriott,
Two Stamford Forum, Stamford, Connecticut

Form 10-K
A copy of the Company’s 2007 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 made by writing to our Transfer
Agent, The Bank of New York Mellon, Investor Services
Department, P.O. Box 11258, New York, NY 10286-1258 or
by calling toll-free at 1-800-524-4458. The Company has a
dividend reinvestment plan which provides stockholders
with a convenient 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 Athena Bludé, Investor Relations, telephone
(203) 863-8200. Investors are also encouraged to visit our
website at: www.ubproperties.com

Independent Registered Public Accounting Firm
PKF, Certified Public Accountants, A Professional Corporation

General Counsel
Baker & McKenzie LLP

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

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

321 RAILROAD AVENUE
GREENWICH, CONNECTICUT 06830

Before Renovations

The Dock Shopping Center, Stratford, Connecticut

After Renovations