Cedar Realty Trust, Inc. Reports First Quarter 2013 Results
PORT WASHINGTON, N.Y., May 9, 2013 /PRNewswire/ -- Cedar Realty Trust, Inc. (NYSE: CDR) today reported its financial results for the first quarter ended March 31, 2013.
First Quarter 2013 Highlights
- Operating FFO of $0.12 per diluted share.
- Same-property NOI increased 1.2% for the quarter, excluding the timing impact of replacing a dark anchor at Oakland Commons.
- Signed new and renewal leases for a total of 225,000 square feet.
- Positive leasing spreads of 8.2% on a cash basis (new leases increased 12.3% and renewals increased 7.3%).
- Total portfolio 92.8% leased and same-property portfolio 94.0% leased.
"We are pleased with our results for the first quarter. We continue to execute on our repositioning strategy which has resulted in continued divestitures and de-levering. Furthermore, our keen focus on operations has resulted in solid earnings and strong leasing results," commented Bruce Schanzer, President and CEO of Cedar.
Financial Results
Operating FFO for first quarter 2013 was $8.7 million or $0.12 per diluted share, compared to $7.9 million or $0.11 per diluted share for the same period in 2012.
Net loss attributable to common shareholders for first quarter 2013 was $(0.9) million or $(0.02) per diluted share, compared to a net loss of $(9.3) million or $(0.14) per diluted share for the same period in 2012. The net loss for first quarter 2012 included accelerated depreciation at a redevelopment property of $6.2 million, and an accelerated write-off of deferred financing costs of $2.6 million.
Portfolio Results
Same-property NOI increased by 1.2% for first quarter of 2013 compared to the same period in 2012, excluding the timing impact associated with replacing the dark anchor at Oakland Commons with a Wal-Mart Neighborhood Market. Results for 2013 include a significant amount of snow removal costs. If snow removal costs for 2013 and 2012 were comparable, same-property NOI for first quarter 2013 would have increased by 1.8%.
In first quarter 2013, the Company signed 40 leases for approximately 225,000 square feet. On a comparable space basis, the Company leased 163,000 square feet at a positive lease spread of 8.2% on a cash basis (new leases increased 12.3% and renewals increased 7.3%).
The Company's total portfolio, excluding properties held for sale, was 92.8% leased at March 31, 2013, compared to 92.7% at December 31, 2012 and 91.3% at March 31, 2012. The Company's same-property portfolio was 94.0% leased at March 31, 2013, compared to 93.6% at December 31, 2012 and 93.4% at March 31, 2012.
Balance Sheet Activity
In February 2013, the Company issued an additional 2.3 million shares of its 7.25% Series B Cumulative Redeemable Preferred Stock for gross proceeds of $56.5 million. In addition, during first quarter 2013, the Company sold approximately 221,000 shares of its 7.25% Series B Cumulative Redeemable Preferred Stock under the at-the-market equity program at a weighted average price of $24.52 per share, and realized net proceeds of approximately $5.2 million. The aggregate net proceeds from these transactions were used to redeem the remaining 1.4 million shares of its 8.875% Series A Cumulative Redeemable Preferred Stock for a total cash outlay of $35.4 million, and to reduce amounts outstanding under the Company's corporate credit facility.
As of March 31, 2013, the Company had $73.4 million of borrowing availability under its secured revolving line of credit. If the Company added its recently unencumbered properties to the line of credit borrowing base, the borrowing availability would increase to approximately $130 million.
2013 Guidance
The Company reaffirms its previously-announced 2013 Operating FFO guidance range of $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 May 20, 2013 to shareholders of record as of the close of business on May 10, 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 March 31, 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, May 9, 2013, at 5:00 PM (ET) to discuss the first 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 May 9, 2013, until midnight (ET) on May 23, 2013. The replay dial-in numbers are (877) 870-5176 or (1) (858) 384-5517 for international callers. Please use passcode 412376 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 |
|||||
| March 31, |
December 31, |
||||
| 2013 |
2012 |
||||
| (unaudited) |
|||||
| Assets: |
|||||
| Real estate |
|||||
| Land |
$ 282,714,000 |
$ 282,318,000 |
|||
| Buildings and improvements |
1,179,887,000 |
1,178,111,000 |
|||
| 1,462,601,000 |
1,460,429,000 |
||||
| Less accumulated depreciation |
(246,730,000) |
(237,751,000) |
|||
| Real estate, net |
1,215,871,000 |
1,222,678,000 |
|||
| Real estate held for sale/conveyance |
76,828,000 |
77,858,000 |
|||
| Cash and cash equivalents |
4,888,000 |
7,522,000 |
|||
| Restricted cash |
12,371,000 |
13,752,000 |
|||
| Receivables |
19,801,000 |
18,289,000 |
|||
| Other assets and deferred charges, net |
27,971,000 |
29,804,000 |
|||
| Total assets |
$ 1,357,730,000 |
$ 1,369,903,000 |
|||
| Liabilities and equity: |
|||||
| Mortgage loans payable |
$ 566,248,000 |
$ 605,216,000 |
|||
| Mortgage loans payable - real estate held for sale/conveyance |
21,552,000 |
23,258,000 |
|||
| Secured credit facilities |
165,200,000 |
156,000,000 |
|||
| Accounts payable and accrued liabilities |
26,617,000 |
28,179,000 |
|||
| Unamortized intangible lease liabilities |
29,202,000 |
30,508,000 |
|||
| Unamortized intangible lease liabilities - real estate held for sale/conveyance |
4,992,000 |
4,992,000 |
|||
| Total liabilities |
813,811,000 |
848,153,000 |
|||
| Noncontrolling interest - limited partners' mezzanine OP Units |
645,000 |
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 |
345,097,000 |
349,987,000 |
|||
| Total Cedar Realty Trust, Inc. shareholders' equity |
535,758,000 |
513,656,000 |
|||
| Noncontrolling interests: |
|||||
| Minority interests in consolidated joint ventures |
6,075,000 |
6,081,000 |
|||
| Limited partners' OP Units |
1,441,000 |
1,390,000 |
|||
| Total noncontrolling interests |
7,516,000 |
7,471,000 |
|||
| Total equity |
543,274,000 |
521,127,000 |
|||
| Total liabilities and equity |
$ 1,357,730,000 |
$ 1,369,903,000 |
|||
| CEDAR REALTY TRUST, INC. |
|||||
| Condensed Consolidated Statements of Operations |
|||||
| (unaudited) |
|||||
| Three months ended March 31, |
|||||
| 2013 |
2012 |
||||
| Revenues: |
|||||
| Rents |
$ 28,445,000 |
$ 26,624,000 |
|||
| Expense recoveries |
8,295,000 |
6,941,000 |
|||
| Other |
223,000 |
819,000 |
|||
| Total revenues |
36,963,000 |
34,384,000 |
|||
| Property operating expenses: |
|||||
| Operating, maintenance and management |
7,066,000 |
6,370,000 |
|||
| Real estate and other property-related taxes |
4,597,000 |
4,380,000 |
|||
| Total property operating expenses |
11,663,000 |
10,750,000 |
|||
| Property operating income |
25,300,000 |
23,634,000 |
|||
| Other expenses: |
|||||
| General and administrative |
3,270,000 |
3,625,000 |
|||
| Employee termination costs |
106,000 |
- |
|||
| Impairment reversal |
(1,100,000) |
- |
|||
| Depreciation and amortization |
9,822,000 |
15,698,000 |
|||
| Total other expenses |
12,098,000 |
19,323,000 |
|||
| Operating income |
13,202,000 |
4,311,000 |
|||
| Non-operating income and expense: |
|||||
| Interest expense |
(9,102,000) |
(10,156,000) |
|||
| Early extinguishment of debt costs |
(85,000) |
(2,607,000) |
|||
| Interest income |
- |
62,000 |
|||
| Equity in income of unconsolidated joint venture |
- |
445,000 |
|||
| Gain on sale |
346,000 |
- |
|||
| Total non-operating income and expense |
(8,841,000) |
(12,256,000) |
|||
| Income (loss) from continuing operations |
4,361,000 |
(7,945,000) |
|||
| Discontinued operations: |
|||||
| (Loss) income from operations |
(509,000) |
1,482,000 |
|||
| Impairment reversals, net |
- |
1,138,000 |
|||
| Gain on sales |
- |
457,000 |
|||
| Total discontinued operations |
(509,000) |
3,077,000 |
|||
| Net income (loss) |
3,852,000 |
(4,868,000) |
|||
| Less, net loss (income) loss attributable to noncontrolling interests: |
|||||
| Minority interests in consolidated joint ventures |
6,000 |
(1,046,000) |
|||
| Limited partners' interest in Operating Partnership |
3,000 |
105,000 |
|||
| Total net loss (income) loss attributable to noncontrolling interests |
9,000 |
(941,000) |
|||
| Net income (loss) attributable to Cedar Realty Trust, Inc. |
3,861,000 |
(5,809,000) |
|||
| Preferred stock dividends |
(3,607,000) |
(3,531,000) |
|||
| Preferred stock redemption costs |
(1,166,000) |
- |
|||
| Net loss attributable to common shareholders |
$ (912,000) |
$ (9,340,000) |
|||
| Per common share attributable to common shareholders (basic |
|||||
| and diluted): |
|||||
| Continuing operations |
$ (0.01) |
$ (0.17) |
|||
| Discontinued operations |
(0.01) |
0.03 |
|||
| $ (0.02) |
$ (0.14) |
||||
| Weighted average number of common shares - basic and diluted |
68,339,000 |
67,535,000 |
|||
| CEDAR REALTY TRUST, INC. |
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| Reconciliation of Net Loss Attributable to Common Shareholders to Funds From Operations |
||||
| and Operating Funds From Operations |
||||
| Three months ended March 31, |
||||
| 2013 |
2012 |
|||
| Net loss attributable to common shareholders |
$ (912,000) |
$ (9,340,000) |
||
| Real estate depreciation and amortization |
9,729,000 |
15,680,000 |
||
| Limited partners' interest |
(3,000) |
(105,000) |
||
| Impairment reversals, net |
(1,100,000) |
(1,138,000) |
||
| Gain on sales |
(346,000) |
(457,000) |
||
| Consolidated minority interests: |
||||
| Share of (loss) income |
(6,000) |
1,046,000 |
||
| Share of FFO |
(417,000) |
(1,414,000) |
||
| Unconsolidated joint venture: |
||||
| Share of income |
- |
(445,000) |
||
| Share of FFO |
- |
1,469,000 |
||
| Funds From Operations ("FFO") |
6,945,000 |
5,296,000 |
||
| Adjustments for items affecting comparability: |
||||
| Management transition charges and employee termination costs |
106,000 |
- |
||
| Preferred stock redemption costs |
1,166,000 |
- |
||
| Early extinguishment of debt costs |
522,000 |
2,607,000 |
||
| Share-based compensation mark-to-market adjustments |
- |
30,000 |
||
| Operating Funds From Operations ("Operating FFO") |
$ 8,739,000 |
$ 7,933,000 |
||
| FFO per diluted share: |
$ 0.10 |
$ 0.07 |
||
| Operating FFO per diluted share: |
$ 0.12 |
$ 0.11 |
||
| Weighted average number of diluted common shares: |
||||
| Common shares |
71,944,000 |
70,565,000 |
||
| OP Units |
281,000 |
810,000 |
||
| 72,225,000 |
71,375,000 |
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SOURCE Cedar Realty Trust, Inc.
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