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Cedar Realty Trust, Inc. Reports Second Quarter 2013 Results

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PORT WASHINGTON, N.Y., Aug. 6, 2013 /PRNewswire/ -- Cedar Realty Trust, Inc. (NYSE: CDR) today reported its financial results for the quarter ended June 30, 2013.

Second Quarter 2013 Highlights

  • Operating FFO of $0.12 per diluted share.
  • Same-property NOI increased 2.4% for the quarter including redevelopment and expansion properties, and 1.4% excluding redevelopment and expansion properties. These figures exclude the timing impact of replacing a dark anchor.
  • Signed new and renewal leases for a total of 350,000 square feet.
  • Positive leasing spreads of 10.3% on a cash basis (new leases increased 17.8% and renewals increased 9.7%).
  • Total portfolio 92.7% leased and same-property portfolio 93.9% leased.
  • Closed on a new unsecured $310 million credit facility on August 1, 2013.

Bruce Schanzer, President and CEO of Cedar, stated, "Our results represent consistent operating performance, highlighted by positive leasing spreads and momentum.  We continue to focus on our core competencies of leasing and operations, while committing additional resources toward repositioning our portfolio through acquisitions, non-core dispositions and redevelopment activities. Together, these efforts should result in the creation of additional growth and long-term shareholder value."   

Financial Results

Operating FFO for second quarter 2013 was $9.0 million or $0.12 per diluted share, compared to $11.2 million or $0.16 per diluted share for the same period in 2012. Operating FFO for six months ended June 30, 2013 was $17.7 million or $0.24 per diluted share, compared to $19.2 million or $0.27 per diluted share for the same period in 2012. Operating FFO for second quarter and six months ended June 30, 2012 included $3.4 million, or $0.05 per diluted share, of termination related income in connection with replacing a dark anchor at the Company's Oakland Commons shopping center in Bristol, Connecticut.

Net income attributable to common shareholders for second quarter 2013 was $1.0 million or $0.01 per diluted share, compared to $1.2 million or $0.01 per diluted share for the same period in 2012. Net income attributable to common shareholders for six months ended June 30, 2013 was $65,000 or $0.00 per diluted share, compared to a net loss of $(8.1) million or $(0.13) per diluted share for the same period in 2012.

Portfolio Results

For second quarter 2013, same-property NOI increased 2.4% including redevelopment and expansion properties, and 1.4% excluding redevelopment and expansion properties, compared to the same period in 2012. These figures exclude the timing impact associated with replacing the dark anchor at Oakland Commons with a Walmart Neighborhood Market.

The Company signed 37 leases for approximately 350,000 square feet in second quarter of 2013. On a comparable space basis, the Company leased 344,000 square feet at a positive lease spread of 10.3% on a cash basis (new leases increased 17.8% and renewals increased 9.7%).

The Company's total portfolio, excluding properties held for sale, was 92.7% leased and 92.0% occupied at June 30, 2013. The Company's same-property portfolio was 93.9% leased and 93.4% occupied at June 30, 2013. Other than a 50 basis points increase in total portfolio occupancy, these percentages are generally consistent with the prior quarter.

Balance Sheet Activity

The Company previously announced its plan to divest certain non-core assets in order to improve its geographic and asset type focus and reduce its debt to EBITDA ratio from in excess of 9.0 times to less than 8.0 times.  As of June 30, 2013, the Company reported net debt to EBITDA ratio of 8.0 times and had realized $107 million of its targeted $150 million of net proceeds from dispositions.

New Credit Facility

On August 1, 2013, the Company closed on a new $310 million unsecured credit facility. The new facility is comprised of a three-year $260 million revolving credit facility, expiring in August 2016 (subject to two one-year extension options), and a five-year $50 million term loan, expiring in August 2018. Borrowings under the new facility are initially priced at LIBOR plus 195 bps (a weighted average rate of 2.2% per annum) and, at the closing, the Company had approximately $117 million available for additional borrowings.

2013 Guidance

The Company raised the low end of its 2013 Operating FFO guidance to an updated range of $0.47 to $0.49 per diluted share from $0.46 to $0.49 per diluted share.

Quarterly Dividends

As previously announced, the Company will pay a cash dividend of $0.05 per share on the Company's common stock and $0.453125 per share on the Company's 7.25% Series B Cumulative Redeemable Preferred Stock on August 20, 2013 to shareholders of record as of the close of business on August 9, 2013.

Funds From Operations Reconciliation

The Company reports FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO is a widely-recognized non-GAAP financial measure for REITs that the Company believes, when considered with financial statements prepared in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. The Company's computation of FFO, as detailed in the attached schedule, is in accordance with NAREIT's pronouncements. The Company also presents "Operating FFO", which excludes certain items that are not indicative of the results provided by the Company's consolidated portfolio and that affect the comparability of the Company's period-over-period performance, as also detailed in the attached schedule.

Supplemental Financial Information Package

The Company has issued "Supplemental Financial Information" for the period ended June 30, 2013. Such information has been filed today as an exhibit to Form 8-K and will also be available on the Company's website at www.cedarrealtytrust.com.

Investor Conference Call

The Company will host a conference call today, August 6, 2013, at 5:00 PM (ET) to discuss the second quarter results. The conference call can be accessed by dialing (877) 705-6003 or (1) (201) 493-6725 for international participants. A live webcast of the conference call will be available online on the Company's website at www.cedarrealtytrust.com.

A replay of the call will be available from 8:00 PM (ET) on August 6, 2013, until midnight (ET) on August 20, 2013. The replay dial-in numbers are (877) 870-5176 or (1) (858) 384-5517 for international callers. Please use passcode 417096 for the telephonic replay. A replay of the Company's webcast will be available on the Company's website for a limited time.

About Cedar Realty Trust

Cedar Realty Trust, Inc. is a fully-integrated real estate investment trust which focuses on the ownership and operation of primarily grocery-anchored shopping centers straddling the Washington DC to Boston corridor. The Company's portfolio (excluding properties treated as "held for sale") is comprised of 67 properties, with approximately 10 million square feet of GLA.

For additional financial and descriptive information on the Company, its operations and its portfolio, please refer to the Company's website at www.cedarrealtytrust.com.

Forward-Looking Statements

Statements made in this press release that are not strictly historical are "forward-looking" statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance and outcomes to differ materially from those expressed or implied in forward-looking statements. Please refer to the documents filed by Cedar Realty Trust, Inc. with the SEC, specifically the Company's Annual Report on Form 10-K for the year ended December 31, 2012, which identifies important risk factors that could cause actual results to differ from those contained in forward-looking statements.






CEDAR REALTY TRUST, INC.

Condensed Consolidated Balance Sheets








June 30,


December 31,



2013


2012



(unaudited)



Assets:





 Real estate





    Land


$                      282,714,000


$                      282,318,000

    Buildings and improvements


1,182,461,000


1,178,111,000



1,465,175,000


1,460,429,000

    Less accumulated depreciation


(255,656,000)


(237,751,000)

 Real estate, net


1,209,519,000


1,222,678,000

 Real estate held for sale/conveyance 


65,026,000


77,858,000

 Cash and cash equivalents


4,995,000


7,522,000

 Restricted cash


12,098,000


13,752,000

 Receivables


19,299,000


18,289,000

 Other assets and deferred charges, net


24,767,000


29,804,000

Total assets


$                   1,335,704,000


$                   1,369,903,000






Liabilities and equity:





 Mortgage loans payable


$                      559,223,000


$                      605,216,000

 Mortgage loans payable - real estate held for sale/conveyance 


18,401,000


23,258,000

 Credit facility


158,000,000


156,000,000

 Accounts payable and accrued liabilities


25,161,000


28,179,000

 Unamortized intangible lease liabilities


28,121,000


30,508,000

 Unamortized intangible lease liabilities - real estate held for sale/conveyance


4,115,000


4,992,000

Total liabilities


793,021,000


848,153,000






Noncontrolling interest - limited partners' mezzanine OP Units


644,000


623,000






Commitments and contingencies


-


-






Equity:





 Cedar Realty Trust, Inc. shareholders' equity:





    Preferred stock 


190,661,000


163,669,000

    Common stock and other shareholders' equity


343,894,000


349,987,000

        Total Cedar Realty Trust, Inc. shareholders' equity


534,555,000


513,656,000

 Noncontrolling interests:





    Minority interests in consolidated joint ventures


6,059,000


6,081,000

    Limited partners' OP Units


1,425,000


1,390,000

        Total noncontrolling interests


7,484,000


7,471,000

Total equity


542,039,000


521,127,000

Total liabilities and equity


$                   1,335,704,000


$                   1,369,903,000






 

CEDAR REALTY TRUST, INC.

Condensed Consolidated Statements of Operations

(unaudited)












Three months ended June 30,


Six months ended June 30,



2013


2012


2013


2012










Revenues:









 Rents


$ 28,532,000


$ 26,913,000


$ 56,977,000


$ 53,537,000

 Expense recoveries


6,674,000


6,343,000


14,969,000


13,284,000

 Other


165,000


3,642,000


388,000


4,461,000

Total revenues


35,371,000


36,898,000


72,334,000


71,282,000

Property operating expenses:









 Operating, maintenance and management


5,557,000


5,496,000


12,623,000


11,866,000

 Real estate and other property-related taxes


4,526,000


4,249,000


9,123,000


8,629,000

Total property operating expenses


10,083,000


9,745,000


21,746,000


20,495,000










Property operating income


25,288,000


27,153,000


50,588,000


50,787,000










Other expenses:









 General and administrative


3,456,000


3,737,000


6,726,000


7,362,000

 Employee termination costs


-


-


106,000


-

 Impairment reversal


-


-


(1,100,000)


-

 Depreciation and amortization


9,763,000


9,768,000


19,585,000


25,467,000

Total other expenses


13,219,000


13,505,000


25,317,000


32,829,000










Operating income


12,069,000


13,648,000


25,271,000


17,958,000










Non-operating income and expense:









 Interest expense


(9,143,000)


(9,721,000)


(18,245,000)


(19,876,000)

 Early extinguishment of debt costs


(21,000)


-


(106,000)


(2,607,000)

 Interest income


2,000


62,000


2,000


124,000

 Equity in income of unconsolidated joint venture


-


576,000


-


1,021,000

 Gain on sale


-


79,000


346,000


79,000

Total non-operating income and expense


(9,162,000)


(9,004,000)


(18,003,000)


(21,259,000)










Income (loss) from continuing operations


2,907,000


4,644,000


7,268,000


(3,301,000)










Discontinued operations:









 Income (loss) from operations


281,000


958,000


(228,000)


2,440,000

 Impairment reversals, net


-


-


-


1,138,000

 Gain on extinguishment of debt


1,298,000


-


1,298,000


-

 Gain on sales


-


293,000


-


750,000

Total discontinued operations


1,579,000


1,251,000


1,070,000


4,328,000










Net income


4,486,000


5,895,000


8,338,000


1,027,000










Less, net loss (income) loss attributable to noncontrolling interests:









 Minority interests in consolidated joint ventures


97,000


(662,000)


103,000


(1,708,000)

 Limited partners' interest in Operating Partnership


(4,000)


(8,000)


(1,000)


97,000

 Total net loss (income) loss attributable to noncontrolling interests


93,000


(670,000)


102,000


(1,611,000)










Net income (loss) attributable to Cedar Realty Trust, Inc.


4,579,000


5,225,000


8,440,000


(584,000)










Preferred stock dividends


(3,602,000)


(3,607,000)


(7,209,000)


(7,138,000)

Preferred stock redemption costs


-


(382,000)


(1,166,000)


(382,000)










Net income (loss) attributable to common shareholders


$ 977,000


$ 1,236,000


$ 65,000


$ (8,104,000)










Per common share attributable to common shareholders (basic









 and diluted):









 Continuing operations


$ (0.01)


$ 0.01


$ (0.02)


$ (0.16)

 Discontinued operations


0.02


0.00


0.02


0.03



$ 0.01


$ 0.01


$ 0.00


$ (0.13)










Weighted average number of common shares - basic and diluted


68,345,000


68,038,000


68,342,000


67,787,000










 

CEDAR REALTY TRUST, INC.

Reconciliation of Net Income (Loss) Attributable to Common Shareholders to Funds From Operations

and Operating Funds From Operations












Three months ended June 30,


Six months ended June 30,



2013


2012


2013


2012










Net income (loss) income attributable to common shareholders


$            977,000


$         1,236,000


$              65,000


$       (8,104,000)

 Real estate depreciation and amortization


9,657,000


9,712,000


19,386,000


25,392,000

 Limited partners' interest


4,000


8,000


1,000


(97,000)

 Impairment reversals, net


-


-


(1,100,000)


(1,138,000)

 Gain on sales 


-


(372,000)


(346,000)


(829,000)

 Consolidated minority interests:









    Share of (loss) income


(97,000)


662,000


(103,000)


1,708,000

    Share of FFO


(278,000)


(1,377,000)


(695,000)


(2,791,000)

 Unconsolidated joint venture:









    Share of income


-


(576,000)


-


(1,021,000)

    Share of FFO


-


1,587,000


-


3,056,000

Funds From Operations ("FFO")


10,263,000


10,880,000


17,208,000


16,176,000

 Adjustments for items affecting comparability:









    Employee termination costs


-


-


106,000


-

    Preferred stock redemption costs


-


382,000


1,166,000


382,000

    Gain on extinguishment of debt


(1,298,000)


-


(1,298,000)


-

    Early extinguishment of debt costs


21,000


-


543,000


2,607,000

    Share-based compensation mark-to-market adjustments


-


(20,000)


-


10,000

Operating Funds From Operations ("Operating FFO")


$          8,986,000


$        11,242,000


$        17,725,000


$        19,175,000

FFO per diluted share:


$                   0.14


$                   0.15


$                   0.24


$                   0.23

Operating FFO per diluted share:


$                   0.12


$                   0.16


$                   0.24


$                   0.27










Weighted average number of diluted common shares:









 Common shares


72,301,000


71,136,000


72,122,000


70,850,000

 OP Units


281,000


462,000


281,000


637,000



72,582,000


71,598,000


72,403,000


71,487,000










 

SOURCE Cedar Realty Trust, Inc.



RELATED LINKS
http://www.cedarrealtytrust.com

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