Cedar Realty Trust Reports Third Quarter 2015 Results

Nov 05, 2015, 16:01 ET from Cedar Realty Trust, Inc.

PORT WASHINGTON, N.Y., Nov. 5, 2015 /PRNewswire/ -- Cedar Realty Trust, Inc. (the Company) (NYSE: CDR) today reported financial and operating results for the third quarter ended September 30, 2015.

Operating Highlights

  • Operating funds from operations (Operating FFO) of $0.14 per diluted share
  • Same-property net operating income (NOI) increased 3.1% including redevelopments and 2.2% excluding redevelopments
  • Signed 27 new and renewal leases for 154,100 square feet
  • Comparable cash-basis lease spreads of 8.2%
  • Total portfolio 93.3% leased and same-property portfolio 93.5% leased at quarter-end
  • Raised low end of 2015 Operating FFO guidance to a new range of $0.53 to $0.54 per diluted share

"We are pleased to again report solid and consistent quarterly results which have permitted us to increase our Operating FFO guidance," commented Bruce Schanzer, President and CEO.

Financial Results

Operating FFO for the third quarter of 2015 was $12.0 million or $0.14 per diluted share, compared to $10.8 million or $0.14 per diluted share for the same period in 2014. Operating FFO for the nine months ended September 30, 2015 was $34.1 million or $0.40 per diluted share, compared to $32.2 million or $0.41 per diluted share for the same period in 2014. NAREIT-defined FFO (FFO) for the third quarter of 2015 was $11.9 million or $0.14 per diluted share, compared to $10.8 million or $0.14 per diluted share for the same period in 2014. FFO for the nine months ended September 30, 2015 was $33.5 million or $0.39 per diluted share, compared to $30.6 million or $0.39 per diluted share for the same period in 2014. The principal differences between Operating FFO and FFO are acquisition costs and debt extinguishment amounts.

Net income attributable to common shareholders for the third quarter of 2015 was $2.6 million or $0.03 per diluted share, compared to $2.2 million or $0.03 per diluted share for the same period in 2014. Net income attributable to common shareholders for the nine months ended September 30, 2015 was $4.4 million or $0.05 per diluted share, compared to $13.8 million or $0.18 per diluted share for the same period in 2014. The principal differences in the comparative nine-month results are gain on sales of properties and impairment charges during the nine months ended September 30, 2014.

Portfolio Results

Same-property NOI for the third quarter of 2015 increased 3.1% including redevelopments and 2.2% excluding redevelopments, compared to the same period in 2014.

During the third quarter of 2015, the Company signed 27 leases for 154,100 square feet. On a comparable space basis, the Company leased 150,600 square feet at a positive lease spread of 8.2% on a cash basis (new leases increased 5.6% and renewals increased 9.0%). During the nine months ended September 30, 2015, the Company signed 104 leases for 649,100 square feet. On a comparable space basis, the Company leased 576,500 square feet at a positive lease spread of 8.0% on a cash basis (new leases increased 9.4% and renewals increased 7.7%).

The Company's total portfolio, excluding properties held for sale, was 93.3% leased at September 30, 2015, compared to 93.2% at June 30, 2015 and 93.1% at September 30, 2014. The Company's same-property portfolio was 93.5% leased at September 30, 2015, compared to 93.3% at June 30, 2015 and 93.9% at September 30, 2014.

2015 Guidance

The Company raised the low end and revised its 2015 guidance as follows:

Revised Guidance

Previous Guidance

Operating FFO per diluted common share

$0.53  -  $0.54

$0.52  -  $0.54

NAREIT-defined FFO per diluted common share

$0.52  -  $0.53

$0.51  -  $0.53

 

Quarterly Dividends

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 November 20, 2015 to shareholders of record as of the close of business on November 10, 2015.

Non-GAAP Financial Measures

NAREIT-defined FFO (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 in understanding financial performance and provides a relevant basis for comparison among REITs. The Company also presents Operating Funds From Operations (Operating FFO), which excludes certain items that are not indicative of the operating results provided by the Company's core portfolio and that affect the comparability of the Company's period-over-period performance. FFO and Operating FFO should not be considered as alternatives to net income attributable to common shareholders, the most directly comparable GAAP financial measure. A reconciliation of net income attributable to common shareholders to FFO and Operating FFO for the three and nine months ended September 30, 2015 and 2014 is detailed in the attached schedule.

Supplemental Financial Information Package

The Company has issued Supplemental Financial Information for the period ended September 30, 2015. 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/Webcast

The Company will host a conference call today, November 5, 2015, at 5:00 PM (ET) to discuss the third 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 November 5, 2015 until midnight (ET) on November 19, 2015. The replay dial-in numbers are (877) 870-5176 or (1) (858) 384-5517 for international callers. Please use passcode 13620084 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. At September 30, 2015, the Company's portfolio (excluding properties treated as "held for sale") was comprised of 59 properties, with approximately 9.3 million square feet of gross leasable area.

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. Factors which could cause actual results to differ materially from current expectations include, among others:  adverse general economic conditions in the United States and uncertainty in the credit and retail markets; financing risks, such as the inability to obtain new financing or refinancing on favorable terms as the result of market volatility or instability; risks related to the market for retail space generally, including reductions in consumer spending, variability in retailer demand for leased space, tenant bankruptcies, adverse impact of internet sales demand, ongoing consolidation in the retail sector and changes in economic conditions and consumer confidence; risks endemic to real estate and the real estate industry generally; the impact of the Company's level of indebtedness on operating performance; inability of tenants to meet their rent and other lease obligations; adverse impact of new technology and e-commerce developments on the Company's tenants; competitive risk; risks related to the geographic concentration of the Company's properties in the Washington D.C. to Boston corridor; the effects of natural and other disasters; and the inability of the Company to realize anticipated returns from its redevelopment activities. 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, 2014, as it may be updated or supplemented in the Company's Quarterly Reports on Form 10-Q and the Company's other filings with the SEC, which identify additional risk factors that could cause actual results to differ from those contained in forward-looking statements.

 

CEDAR REALTY TRUST, INC.

Condensed Consolidated Balance Sheets

(unaudited)

September 30,

December 31,

2015

2014

ASSETS

Real estate, at cost

$ 1,504,400,000

$ 1,476,173,000

Less accumulated depreciation

(291,991,000)

(267,211,000)

Real estate, net

1,212,409,000

1,208,962,000

Real estate held for sale

13,084,000

16,508,000

Cash and cash equivalents

2,217,000

3,499,000

Restricted cash

4,981,000

7,859,000

Receivables

19,881,000

18,405,000

Other assets and deferred charges, net

35,032,000

31,546,000

TOTAL ASSETS

$ 1,287,604,000

$ 1,286,779,000

LIABILITIES AND EQUITY

Liabilities:

Mortgage loans payable

$    279,802,000

$    393,388,000

Unsecured revolving credit facility

64,000,000

72,000,000

Unsecured term loans

300,000,000

200,000,000

Accounts payable and accrued liabilities

27,170,000

22,364,000

Unamortized intangible lease liabilities

22,019,000

23,776,000

Total liabilities

692,991,000

711,528,000

Noncontrolling interest - limited partners' mezzanine OP Units

-

396,000

Equity:

Preferred stock 

190,661,000

190,661,000

Common stock and other shareholders' equity

402,340,000

378,891,000

Noncontrolling interests

1,612,000

5,303,000

Total equity

594,613,000

574,855,000

TOTAL LIABILITIES AND EQUITY

$ 1,287,604,000

$ 1,286,779,000

 

 

CEDAR REALTY TRUST, INC.

Condensed Consolidated Statements of Operations

(unaudited)

Three months ended September 30,

Nine months ended September 30,

2015

2014

2015

2014

PROPERTY REVENUES

Rents  

$       29,209,000

$       29,356,000

$       87,367,000

$       87,702,000

Expense recoveries

6,852,000

7,128,000

23,887,000

23,566,000

Other

39,000

15,000

223,000

251,000

Total property revenues

36,100,000

36,499,000

111,477,000

111,519,000

PROPERTY OPERATING EXPENSES

Operating, maintenance and management

5,071,000

5,811,000

19,072,000

20,282,000

Real estate and other property-related taxes

4,717,000

4,503,000

14,369,000

13,697,000

Total property operating expenses

9,788,000

10,314,000

33,441,000

33,979,000

PROPERTY OPERATING INCOME

26,312,000

26,185,000

78,036,000

77,540,000

OTHER EXPENSES AND INCOME

General and administrative

3,696,000

3,316,000

11,267,000

10,620,000

Acquisition costs 

-

-

499,000

2,870,000

Depreciation and amortization

9,642,000

9,665,000

28,871,000

28,806,000

Gain on sales

-

(2,332,000)

-

(6,142,000)

Impairment (reversals) / charges

(127,000)

1,250,000

1,106,000

3,063,000

Total other expenses and income

13,211,000

11,899,000

41,743,000

39,217,000

OPERATING INCOME

13,101,000

14,286,000

36,293,000

38,323,000

NON-OPERATING INCOME AND EXPENSES

Interest expense

(6,927,000)

(8,216,000)

(21,412,000)

(24,411,000)

Early extinguishment of debt costs

(48,000)

-

(105,000)

(150,000)

Total non-operating income and expense

(6,975,000)

(8,216,000)

(21,517,000)

(24,561,000)

INCOME FROM CONTINUING OPERATIONS

6,126,000

6,070,000

14,776,000

13,762,000

DISCONTINUED OPERATIONS

Income from operations

-

80,000

12,000

1,579,000

Impairment (charges) / reversals

-

(441,000)

153,000

(316,000)

Gain on extinguishment of debt obligations

-

-

-

1,423,000

Gain on sales

-

-

-

7,963,000

Total (loss) income from discontinued operations

-

(361,000)

165,000

10,649,000

NET INCOME

6,126,000

5,709,000

14,941,000

24,411,000

Attributable to noncontrolling interests

66,000

76,000

247,000

221,000

NET INCOME ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.

6,192,000

5,785,000

15,188,000

24,632,000

Preferred stock dividends

(3,602,000)

(3,602,000)

(10,806,000)

(10,806,000)

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

$         2,590,000

$         2,183,000

$         4,382,000

$       13,826,000

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND DILUTED)

Continuing operations

$                  0.03

$                  0.03

$                  0.05

$                  0.04

Discontinued operations

0.00

(0.00)

0.00

0.14

$                  0.03

$                  0.03

$                  0.05

$                  0.18

Weighted average number of common shares - basic and diluted

81,598,000

75,547,000

81,268,000

75,233,000

 

 

CEDAR REALTY TRUST, INC.

Reconciliation of Net Income Attributable to Common Shareholders to Funds From Operations

and Operating Funds From Operations

(unaudited)

Three months ended September 30,

Nine months ended September 30,

2015

2014

2015

2014

Net income attributable to common shareholders

$   2,590,000

$   2,183,000

$   4,382,000

$ 13,826,000

Real estate depreciation and amortization

9,592,000

9,583,000

28,676,000

28,553,000

Limited partners' interest

11,000

8,000

19,000

76,000

Impairment (reversals) / charges, net

(127,000)

1,691,000

953,000

3,379,000

Gain on sales 

-

(2,332,000)

-

(14,105,000)

Consolidated minority interests:

Share of loss 

(77,000)

(84,000)

(266,000)

(297,000)

Share of FFO

(70,000)

(274,000)

(238,000)

(807,000)

Funds From Operations (FFO) applicable to diluted common shares

11,919,000

10,775,000

33,526,000

30,625,000

Adjustments for items affecting comparability:

Early extinguishment of debt costs

48,000

-

105,000

150,000

Acquisition costs 

-

-

499,000

2,870,000

Gain on extinguishment of debt obligations

-

-

-

(1,423,000)

Operating Funds From Operations (Operating FFO) applicable 

to diluted common shares

$  11,967,000

$  10,775,000

$  34,130,000

$  32,222,000

FFO per diluted common share:

$              0.14

$              0.14

$              0.39

$              0.39

Operating FFO per diluted common share:

$              0.14

$              0.14

$              0.40

$              0.41

Weighted average number of diluted common shares:

Common shares

85,026,000

79,214,000

84,783,000

78,908,000

OP Units

375,000

395,000

387,000

447,000

85,401,000

79,609,000

85,170,000

79,355,000

 

SOURCE Cedar Realty Trust, Inc.



RELATED LINKS

http://www.cedarrealtytrust.com