Equity One Reports Third Quarter 2009 Operating Results; Board Approves New Dividend Policy

http://www.businesswire.com/news/home/20091104006540/en

NORTH MIAMI BEACH, Fla.--(Business Wire)--
Equity One, Inc. (NYSE:EQY), an owner, developer, and operator of shopping
centers, announced today its financial results for the three and nine months
ended September 30, 2009.

Highlights

* Reported third quarter FFO of $0.36 per share as compared to a loss of $0.13
per share last year
* Same property NOI decreased by 4.5%
* Occupancy was 90.1%, down 60 basis points as compared to June 30, 2009
* Acquired Westbury Plaza for $103.7 million
* Increased and narrowed 2009 FFO guidance to $1.65 to $1.70 per share
* Board adopted a new reduced dividend policy effective in the fourth quarter
2009

"In a challenging environment, we`re pleased with how we have performed,
delivering results that met our expectations," said Jeff Olson, Chief Executive
Officer of Equity One. "We`re seeing signs of increased demand in the leasing
market, and it appears that the financial markets are improving."

"I am also extremely pleased that we are executing on an exciting investment in
the New York City metropolitan area - Westbury Plaza. This site is in one of the
premiere retail corridors in the country with opportunities to create additional
value."

Financial Highlights

In the third quarter 2009, Equity One generated Funds From Operations (FFO) of
$31.3 million, or $0.36 per diluted share, as compared to FFO for the same
period in 2008 in which a loss of $9.9 million, or $0.13 per diluted share, was
recorded. The third quarter 2009 FFO results include gains of $6.3 million, or
$0.07 per diluted share, from the sale of our investment in equity securities
and $2.3 million, or $0.03 per diluted share, of gains from the sale of two
outparcels. The third quarter 2008 results included a non-cash impairment charge
related to the Company`s investment in DIM Vastgoed, N.V. ("DIM") amounting to
$32.7 million, or $0.45 per diluted share.

For the nine months ended September 30, 2009, Equity One reported FFO of $118.4
million, or $1.43 per diluted share, which includes $0.40 per diluted share of
one-time items pertaining to the bargain purchase gain from our acquisition of a
controlling stake of DIM in the first quarter and the gain from our investment
in equity securities recorded in the third quarter. FFO for the same nine-month
period in 2008 was $46.0 million, or $0.63 per diluted share, including the DIM
non-cash impairment charge amounting to $0.44 per diluted share.

Net income attributable to Equity One was $15.3 million and earnings per diluted
share was $0.17 for the quarter ended September 30, 2009 as compared to a net
loss of $21.4 million, or $0.29 per diluted share, for third quarter 2008. For
the nine months ended September 30, 2009, net income attributable to Equity One
was $74.5 million, or $0.89 per diluted share. This compares to net income
attributable to Equity One of $28.9 million, or $0.39 per diluted share, for the
nine months ended September 30, 2008. The 2008 results for the nine months
included $18.5 million of gains from the sale of seven properties to our joint
venture with Global Retail Investors, LLC and the DIM non-cash impairment charge
of $32.7 million.

Operating Highlights

As of September 30, 2009, occupancy for the company`s core portfolio was 90.1%,
down 60 basis points on a same property basis as compared to June 30, 2009 and
down 200 basis points as compared to September 30, 2008.

For the third quarter of 2009, same-property net operating income declined 4.5%
compared to the same period in 2008, primarily due to higher bad debt and an
accrual adjustment booked in the third quarter of 2008 that had the effect of
reducing our prior year expense. Excluding these two factors, our same property
NOI would have decreased by 1.8%.

During the third quarter of 2009, the company executed 43 new leases in its core
portfolio totaling 198,732 square feet at an average rental rate of $13.18 per
square foot, representing a 24.4% increase from prior rents on a same-space cash
basis. Also during the third quarter, the company renewed 81 leases in its core
portfolio for 224,348 square feet for an average rental rate decline of 3.2% to
$12.82 per square foot on a cash basis. In addition, the company renewed seven
leases in its core portfolio for 141,142 square feet subject to tenant renewal
options for an average rental rate increase of 2.2% to $4.75 per square foot on
a cash basis.

Acquisition Activity

On October 29, 2009, Equity One closed on the acquisition of Westbury Plaza for
approximately $103.7 million. Westbury Plaza is a 400,000 square foot shopping
center situated in the center of Nassau County, Long Island. It is anchored by
Walmart and Costco. The purchase price reflects a capitalization rate of
approximately 8%.

"The acquisition of Westbury Plaza clearly was a very important event for Equity
One," said Tom Caputo, President of Equity One. "We are delighted we had the
opportunity to purchase such a high quality asset as we enter the New York
market. The property is extremely well located in arguably one of the best
retail markets in the Northeast. The productivity of the tenants at Westbury
Plaza is higher than any center I have seen in over 25 years in the acquisition
business."

Development and Redevelopment Activities

At September 30, 2009, Equity One had approximately $35.6 million of active
development projects and approximately $8.8 million of redevelopment projects
underway. The estimated remaining cost to complete these projects is
approximately $3.1 million.

Balance Sheet Highlights

At September 30, 2009, Equity One`s total market capitalization equaled $2.4
billion, comprising 86.7 million shares of common stock (on a fully diluted
basis) valued at $1.3 billion and $1.1 billion of net debt (excluding any debt
premium/discount and net of cash), and our ratio of net debt to total market
capitalization was 43.8%.

As of September 30, 2009, Equity One had $20.0 million outstanding under its
$227 million unsecured line of credit.

FFO and Earnings Guidance

Based on its activities and the results recognized through the third quarter,
Equity One is revising its 2009 guidance of FFO from the previous range of $1.55
to $1.63, to a new range of $1.65 to $1.70 per diluted share. Previous guidance
for net income per diluted share of $0.92 to $0.98 is being revised to $0.98 to
$1.01. These estimates take into account the impact of the company`s April 2009
equity offering, gains on the extinguishment of debt, gains on the sale of
equity securities, and land sale gains recognized during the nine months ended
September 30, 2009. In addition, this guidance assumes additional gains on
outparcels of approximately $0.02 per diluted share during the fourth quarter of
2009 and includes the projected impact of the acquisition of Westbury.
Management expects that annual same-property NOI growth will be between -3% to
-4% for 2009.

The following table provides the reconciliation of the range of estimated net
income per diluted share to estimated FFO per diluted share for the full year
2009:

Low High
Estimated net income attributable to Equity One $0.98 $1.01
Adjustments:
Rental property depreciation and amortization including pro rata share of joint ventures 0.65 0.67
Loss on sale of income-producing properties 0.02 0.02
Estimated Funds from Operations (FFO) attributable to Equity One $1.65 $1.70

Board Adopts New Dividend Policy Effective Fourth Quarter 2009

The board of directors of Equity One voted today to revise the company`s
dividend policy and declared a cash dividend of $0.22 per share of its common
stock for the quarter ending December 31, 2009, payable on that date to
stockholders of record on December 15, 2009. The $0.22 per share dividend
represents an annualized rate of $0.88 per share compared to the previous annual
dividend of $1.20 per share.

"We believe our new dividend policy better aligns our capital allocation with
our strategic growth objectives while still maintaining an attractive dividend
yield," said Mr. Olson.

ACCOUNTING AND OTHER DISCLOSURES

We believe Funds from Operations ("FFO") (combined with the primary GAAP
presentations) is a useful, supplemental measure of our operating performance
that is a recognized metric used extensively by the real estate industry,
particularly REITs. The National Association of Real Estate Investment Trusts
("NAREIT") stated in its April 2002 White Paper on Funds from Operations,
"Historical cost accounting for real estate assets implicitly assumes that the
value of real estate assets diminishes predictably over time. Since real estate
values instead have historically risen or fallen with market conditions, many
industry investors have considered presentations of operating results for real
estate companies that use historical cost accounting to be insufficient by
themselves."

FFO, as defined by NAREIT, is "net income (computed in accordance with GAAP),
excluding gains (or losses) from sales of depreciable property, plus
depreciation and amortization, and after adjustments for unconsolidated
partnerships and joint ventures." NAREIT states further that "adjustments for
unconsolidated partnerships and joint ventures will be calculated to reflect
funds from operations on the same basis." We believe that financial analysts,
investors and stockholders are better served by the presentation of comparable
period operating results generated from our FFO measure. Our method of
calculating FFO may be different from methods used by other REITs and,
accordingly, may not be comparable to such other REITs.

FFO is presented to assist investors in analyzing our operating performance. FFO
(i) does not represent cash flow from operations as defined by GAAP, (ii) is not
indicative of cash available to fund all cash flow needs, including the ability
to make distributions, (iii) is not an alternative to cash flow as a measure of
liquidity, and (iv) should not be considered as an alternative to net income
(which is determined in accordance with GAAP) for purposes of evaluating our
operating performance. We believe net income is the most directly comparable
GAAP measure to FFO.

CONFERENCE CALL/WEB CAST INFORMATION

We will host a conference call on Thursday, November 5, 2009 at 9:00 a.m. EST to
review the 2009 third quarter earnings and operating results. Stockholders,
analysts and other interested parties can access the earnings call by dialing
(866) 700-7101 (U.S./Canada) or (617) 213-8837 (international) using pass code
14189553. The call will also be web cast and can be accessed in a listen-only
mode on Equity One`s web site at www.equityone.net.

If you are unable to participate during the call, a replay will be available on
Equity One`s web site for future review. You may also access the telephone
replay by dialing (888) 286-8010 (U.S./Canada) or (617) 801-6888 (international)
using pass code 82523080 through November 12, 2009.

FOR ADDITIONAL INFORMATION

For a copy of our third quarter supplemental information package, please access
the "Investors" section of our web site at www.equityone.net. To be included in
our e-mail distributions for press releases and other company notices, please
send your e-mail address to Michele Villano at mvillano@equityone.net.

ABOUT EQUITY ONE, INC.

As of September 30, 2009, Equity One owned or had interests in 180 properties,
consisting of 166 shopping centers comprising approximately 18.9 million square
feet, four projects in development/redevelopment, six non-retail properties, and
four parcels of land. Additionally, Equity One had joint venture interests in
twelve shopping centers and one office building totaling approximately 1.9
million square feet.

FORWARD LOOKING STATEMENTS

Certain matters discussed by Equity One in this press release constitute
forward-looking statements within the meaning of the federal securities
laws.Although Equity One believes that the expectations reflected in such
forward-looking statements is based upon reasonable assumptions, it can give no
assurance that these expectations will be achieved. Factors that could cause
actual results to differ materially from current expectations include changes in
macro-economic conditions and the demand for retail space in the states in which
Equity One owns properties; the continuing financial success of Equity One`s
current and prospective tenants; continuing supply constraints in its geographic
markets; the availability of properties for acquisition; the success of its
efforts to lease up vacant space; the effects of natural and other disasters;
the ability of Equity One successfully to integrate the operations and systems
of acquired companies and properties; and other risks, which are described in
Equity One`s filings with the Securities and Exchange Commission.

EQUITY ONE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets

September 30, 2009 (Unaudited) and December 31, 2008

(In thousands)

September 30, December 31,
2009 2008
ASSETS
Properties:
Income producing $ 2,299,867 $ 1,900,513
Less: accumulated depreciation (228,600 ) (196,151 )
Income producing property, net 2,071,267 1,704,362
Construction in progress and land held for development 66,501 74,371
Properties, net 2,137,768 1,778,733

Cash and cash equivalents 14,632 5,355
Cash held in escrow 7,211 -
Accounts and other receivables, net 10,635 12,209
Investment and advances in real estate joint ventures 11,666 11,745
Marketable securities 698 160,585
Goodwill 11,845 11,845
Other assets 104,044 55,791
TOTAL ASSETS $ 2,298,499 $ 2,036,263

LIABILITIES AND STOCKHOLDERS` EQUITY
Liabilities:
Notes Payable
Mortgage notes payable $ 621,552 $ 371,077
Unsecured revolving credit facilities 19,998 35,500
Unsecured senior notes payable 441,136 657,913
1,082,686 1,064,490
Unamortized/unaccreted (discount) premium on notes payable (24,257 ) 5,225
Total notes payable 1,058,429 1,069,715

Other liabilities
Accounts payable and accrued expenses 38,520 27,778
Tenant security deposits 9,408 8,908
Deferred tax liabilities, net 53,341 1,409
Other liabilities 41,353 17,966
Total liabilities 1,201,051 1,125,776

Redeemable noncontrolling interest 989 989

Commitments and contingencies - -
Equity:
Stockholders` equity of Equity One, Inc.:
Preferred stock, $0.01 par value - 10,000 shares authorized but unissued - -
Common stock, $0.01 par value - 100,000 shares authorized 86,005 and 76,198 shares issued and outstanding as of September 30, 2009 and December 31, 2008, respectively 860 762
Additional paid-in capital 1,108,703 967,514
Distributions in excess of retained earnings (37,089 ) (36,617 )
Contingent consideration 323 -
Accumulated other comprehensive loss (405 ) (22,161 )
Total stockholders` equity of Equity One, Inc. 1,072,392 909,498

Noncontrolling interest 24,067 -
Total stockholders equity 1,096,459 909,498

TOTAL LIABILITIES AND STOCKHOLDERS` EQUITY $ 2,298,499 $ 2,036,263

EQUITY ONE, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

For the three and nine months ended September 30, 2009 and 2008

(In thousands, except per share data)

(Unaudited)

Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
REVENUE:
Minimum rent $ 51,849 $ 44,102 $ 157,176 $ 138,400
Expense recoveries 14,527 11,838 43,428 38,554
Percentage rent 126 190 1,516 1,803
Management and leasing services 322 326 1,316 1,323
Total revenue 66,824 56,456 203,436 180,080
COSTS AND EXPENSES:
Property operating 19,518 14,852 58,188 46,894
Rental property depreciation and amortization 15,438 11,259 45,611 34,671
General and administrative 7,772 7,837 29,021 22,343
Total costs and expenses 42,728 33,948 132,820 103,908
INCOME BEFORE OTHER INCOME AND EXPENSE, TAX AND DISCONTINUED OPERATIONS 24,096 22,508 70,616 76,172

OTHER INCOME AND EXPENSE:
Investment income 6,772 1,245 10,035 8,051
Equity in income (loss) in real estate joint ventures (9 ) 74 (37 ) 244
Other income 325 626 1,409 714
Interest expense (17,733 ) (15,182 ) (55,425 ) (46,578 )
Amortization of deferred financing fees (369 ) (420 ) (1,135 ) (1,268 )
Gain on acquisition of controlling interest in subsidiary - - 26,866 -
Gain on sale of real estate - 57 - 18,513
Other-than-temporary impairment loss on available for sale securities - (32,688 ) - (32,688 )
Gain on extinguishment of debt 160 2,298 12,395 5,374

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAX AND DISCONTINUED OPERATIONS: 13,242 (21,482 ) 64,724 28,534

Income tax benefit (provision) of taxable REIT subsidiaries 774 (78 ) 2,263 73
INCOME (LOSS) FROM CONTINUING OPERATIONS $ 14,016 $ (21,560 ) $ 66,987 $ 28,607

DISCONTINUED OPERATIONS:
Operations of income producing properties sold or held for sale 152 234 598 821
Gain (loss) on disposal of income producing properties 580 (69 ) 5,373 (552 )
INCOME FROM DISCONTINUED OPERATIONS 732 165 5,971 269

NET INCOME (LOSS) $ 14,748 $ (21,395 ) $ 72,958 $ 28,876

Net loss attributable to non controlling interest 570 - 1,553 -
NET INCOME (LOSS) ATTRIBUTABLE TO EQUITY ONE $ 15,318 $ (21,395 ) $ 74,511 $ 28,876

EARNINGS (LOSS) PER COMMON SHARE - BASIC:
Continuing operations $ 0.17 $ (0.29 ) $ 0.83 $ 0.39
Discontinued operations 0.01 - 0.07 -
$ 0.18 $ (0.29 ) $ 0.90 $ 0.39
Number of Shares Used in Computing Basic Earnings per Share 85,959 73,452 82,374 73,405

EARNINGS (LOSS) PER COMMON SHARE - DILUTED:
Continuing operations $ 0.17 $ (0.29 ) $ 0.82 $ 0.39
Discontinued operations 0.01 - 0.07 -
$ 0.17 $ (0.29 ) $ 0.89 $ 0.39
Number of Shares Used in Computing Diluted Earnings per Share 86,648 73,452 83,018 73,510

Note: Diluted EPS for the 3 months ended 2009 does not foot due to the mathematical rounding of the individual calculations.

EQUITY ONE, INC. AND SUBSIDIARIES

Reconciliation of Net Income Attributable to Equity One to Funds from Operations

The following table reflects the reconciliation of FFO to net income
attributable to Equity One, the most directly comparable GAAP measure, for the
periods presented:

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
(In thousands) (In thousands)

Net income attributable to Equity One $ 15,318 $ (21,395 ) $ 74,511 $ 28,876
Adjustments:
Rental property depreciation and amortization, including discontinued operations, net of controlling interest 13,903 11,268 41,078 34,761
Loss (gain) on disposal of income producing properties 1,758 12 1,758 (18,003 )
Pro rata share of real estate depreciation from unconsolidated joint ventures 359 253 1,059 391
Funds from operations $ 31,338 $ (9,862 ) $ 118,406 $ 46,025

Funds from Operations is a non-GAAP financial measure. We believe that FFO, as
defined by NAREIT, is a widely used and appropriate supplemental measure of
operating performance for REITs, and that it provides a relevant basis for
comparison among REITs.

Reconciliation of Earnings per Diluted Share to Funds from Operations per
Diluted Share

The following table reflects the reconciliation of FFO per diluted share, to
earnings per diluted share, the most directly comparable GAAP measure, for the
periods presented:

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008

Earnings per diluted share attributable to Equity One $ 0.17 $ (0.29 ) $ 0.89 $ 0.39
Adjustments:
Rental property depreciation and amortization, including discontinued operations, net of controlling interest 0.16 0.15 0.49 0.47
Loss (gain) on disposal of income producing properties 0.02 - 0.02 (0.24 )
Pro rata share of real estate depreciation from unconsolidated joint ventures - - 0.01 0.01
Net adjustment for unvested shares and non-controlling interest (1) 0.01 0.01 0.02 -
Funds from operations per diluted share $ 0.36 $ (0.13 ) $ 1.43 $ 0.63

(1) Includes net effect of (a) an adjustment for unvested awards of share-based
payments with rights to receive dividends or dividend equivalents and (b) an
adjustment related to the possible share issuance in the fourth quarter of 2010
pursuant to the DIM stock exchange agreement.

Equity One, Inc.
Mark Langer, EVP and Chief Financial Officer, 305-947-1664

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