Cedar Shopping Centers Reports Fourth Quarter and Full Year 2009 Results
- Revenues and Net Operating Income Increased -
- Operating Funds From Operations Reached $1.14 per Share -
- Occupancy Stable at 95% -
- Substantially De-leveraged Balance Sheet -
PORT WASHINGTON, N.Y., March 3 /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE: CDR) today reported its financial results for the fourth quarter and year ended December 31, 2009.
Highlights
- Revenues in the fourth quarter increased 7.1% to $46.8 million compared to $43.7 million for the comparable quarter of 2008, and increased 6.5% to $181.7 million for the full year 2009, compared to $170.7 million for 2008.
- Pro rata share of net operating income ("NOI") for the fourth quarter 2009, excluding certain non-cash items, increased 8.2% to $25.5 million as compared to $23.6 million for the comparable quarter of 2008, and increased 3.1% to $97.9 million for the full year 2009 as compared to $94.9 million for 2008.
- Operating funds from operations ("FFO") for 2009 was $1.14 per share, excluding impairments and certain non-cash items, as compared to $1.21 for 2008. Shares/OP Units outstanding were 54.1 million at December 31, 2009 as compared to 46.5 million at December 31, 2008.
- A joint venture with, and a stock sale to, RioCan Real Estate Investment Trust (TSX: REI.UN) ("RioCan") will provide approximately $105 million in cash and reduce debt by approximately $94 million.
- Common stock sales in the fourth quarter of 2009 and first quarter of 2010 generated approximately $67 million.
- The stabilized property line of credit was extended for two years to January 2012 plus a one-year extension option, with $285 million in commitments. Completion of the above and other announced transactions will result in a balance of approximately $99 million.
Leo Ullman, Cedar's CEO, stated, "Our financial results for the fourth quarter again reflect the continued strength of our Company's "bread and butter"®, primarily dominant supermarket-anchored shopping centers in stable areas of the Northeast and coastal mid-Atlantic states. In accordance with our business plan, we have been able to maintain solid occupancy and strong operating results. We have most effectively weathered an extremely difficult period for retail, real estate and our economy with virtually no diminution of our operating metrics. Indeed, we have been able to show great strength and stability throughout this period.
"Furthermore, we continue to execute successfully on our multi-pronged strategy for improving our financial flexibility through joint ventures, judicious equity placements, property-specific financings and asset sales. We fully expect that our enhanced balance sheet strength and our internal growth prospects, coupled with our joint venture commitment for future acquisitions with RioCan, will permit the Company to pursue attractive opportunities and to add meaningfully to shareholder value during this and following years."
Financial and Operating Results
Results of Operations
During the fourth quarter of 2009, the Company entered into several capital and financing transactions, including (a) joint venture and equity placement transactions with RioCan, which will generate approximately $105 million in cash and reduce debt by approximately $94 million, (b) disposition of six drugstore/convenience properties which will generate approximately $5 million in cash and eliminate approximately $15 million in debt, and (c) extension of the Company's stabilized property line of credit through January 2012 plus a one-year extension option with $285 million of commitments.
Revenues
Revenues for the quarter increased 7.1% to $46.8 million as compared to $43.7 million for the comparable quarter of 2008. Revenues for the year 2009 increased 6.5% to $181.7 million as compared to $170.7 million for 2008.
Net Operating Income (NOI)
The Company's pro rata share of net operating income, before certain non-cash items, was $25.5 million for the fourth quarter of 2009 as compared to $23.6 million for the comparable quarter of 2008. The fourth quarter of 2009 included additional lease termination income and additional income from delivery of ground-up development projects, partially offset by lower percentage rents and higher bad debt expense.
Including such non-cash items, the Company's pro rata share of net operating income for the fourth quarter of 2009 was $28.9 million as compared to $28.3 million for the comparable quarter of 2008. The Company's share of pro rata net operating income, before such non-cash items, for the full year was $97.9 million as compared to $94.9 million for 2008. Including the non-cash items, the Company's pro rata share of net operating income for 2009 was $113.1 million as compared to $110.9 million for 2008.
Net Income Attributable to Common Shareholders
On an aggregate basis, excluding certain non-cash and non-recurring items, net income attributable to common shareholders was $2.1 million for the fourth quarters of both 2009 and 2008 ($0.04 per share, respectively). The 2009 quarter's results reflect (a) lower revenues from straight-line rents and amortization of intangible lease liabilities and (b) higher interest expense, partially offset by higher lease termination income. Impairments, including those related to certain of the RioCan joint venture properties, and certain non-cash and/or non-recurring items, aggregated a negative ($31.8) million (($0.63) per share) for the fourth quarter of 2009 and $0.8 million ($0.02 per share) for the comparable quarter of 2008. Including impairments and non-cash and/or non-recurring items, the net loss attributable to common shareholders was ($29.7) million (($0.59) per share) for the fourth quarter 2009 as compared to net income attributable to common shareholders of $2.9 million ($0.06 per share) for the comparable quarter of 2008. Net income attributable to common shareholders for the full year 2009, before impairments and non-cash and/or non-recurring items, was $10.3 million ($0.22 per share) as compared to $11.9 million ($0.27 per share) for 2008. Including impairments and non-cash and/or non-recurring items, net loss attributable to common shareholders was ($24.5) million (($0.53) per share) for 2009 as compared to net income attributable to common shareholders of $10.5 million ($0.24 per share) for 2008.
Funds From Operations (FFO)
FFO for the quarter, before impairments and non-recurring items, was $12.3 million ($0.24 per share/OP unit) as compared to $13.5 million ($0.29 per share/OP unit) for the comparable quarter of 2008. After impairments and non-recurring items, FFO was a negative ($14.6) million (($0.28) per share/OP unit) as compared to $14.3 million ($0.31 per share/OP unit) for the comparable quarter of 2008. FFO for the year, before impairment and non-recurring items, was $54.9 million ($1.14 per share/OP unit) as compared to $56.4 million ($1.21 per share/OP unit) for the comparable period of 2008. After such items, FFO was $24.6 million ($0.51 per share/OP unit) as compared to $56.9 million ($1.22 per share/OP unit) for the comparable period of 2008.
A reconciliation of net income attributable to common shareholders to FFO is contained in the table accompanying this release. In addition, please refer to the Company's Supplemental Financial Information for a reconciliation of other metrics.
Occupancy
Occupancy for the Company's stabilized properties remained 95% and, including development properties, declined by 40 basis points on an overall basis to 91% from 92% during the fourth quarter of 2009, principally reflecting a Giant Food Stores supermarket lease termination in connection with the completion by the Company of a new Giant Food Stores supermarket at a nearby ground-up development property.
Same-Property Results
The Company's same-property operating results, comprising 104 properties for the fourth quarters of both 2009 and 2008, generated revenues, before certain non-cash items, of $35.6 million for the fourth quarter of 2009 as compared to $34.3 million for the comparable quarter of 2008. Same-property net operating income, before such non-cash items, was $24.9 million for the fourth quarter of 2009 as compared to $24.0 million for the comparable period of 2008. Same-property revenues, before such non-cash items, for the full years 2009 and 2008, comprising 102 properties, were $137.8 million for 2009 as compared to $136.1 million for 2008. Same-property net operating income, before such non-cash items, was $95.9 million for 2009 compared to $97.1 million for 2008.
Leasing and Development Activity
Leasing
During the fourth quarter of 2009, the Company signed 40 renewal leases, primarily at stabilized properties, totaling approximately 254,000 square feet of GLA with an average increase in base rents of 4.8%. The Company signed 15 new leases totaling approximately 188,000 square feet at an average base rent of $16.66 per square foot. During the same quarter, 21 leases were terminated, totaling approximately 150,000 square feet, at an average base rent of $11.44 per square foot.
Development
During the latter part of 2009, the Company completed four ground-up development projects, three of which are anchored by supermarkets, and one by a Walgreens drugstore. During the fourth quarter, the Company also commenced major re-tenanting projects at two additional properties. The Company's remaining pipeline consists primarily of future redevelopments of the Shore Mall (Egg Harbor Township, New Jersey), Trexlertown Plaza (Trexlertown, Pennsylvania) and a ground-up supermarket-anchored property in Kutztown, Pennsylvania. For 2010, the Company projects that it will spend approximately $35 million on its development/redevelopment activities, to be funded from its credit facilities.
Balance Sheet
Total assets were $1.78 billion at December 31, 2009 and $1.73 billion at December 31, 2008. Total debt outstanding was $950.7 million at December 31, 2009 and $918.2 million at December 31, 2008.
At December 31, 2009, the Company's fixed-rate debt was approximately 64% of total indebtedness, with a weighted average remaining term of 5.8 years and a weighted average interest rate of 5.8% per annum.
The Company completed substantial capital and financing transactions in 2009 and early-2010, the cumulative effect of which has been to reduce the Company's debt-to-total-market capitalization from approximately 69.5% to 59.5%.
The RioCan Arrangements
On October 30, 2009, as previously announced, the Company sold to RioCan approximately 6.7 million shares of common stock at $6.00 per share, realizing approximately $40 million before transactions costs. The Company also issued to RioCan a warrant exercisable over a two-year period to purchase an additional approximate 1.4 million common shares at $7.00 per share. In connection with such stock purchase arrangements, RioCan entered into a three-year "standstill" agreement.
RioCan and the Company further agreed to an 80% (RioCan) and 20% (Cedar) joint venture arrangement involving seven supermarket-anchored properties in New England and Pennsylvania, previously owned by the Company, that will generate approximately $65 million of proceeds to the Company. Further, the parties anticipate acquiring additional properties over a two-year period in the same joint venture format. In the first quarter of 2010, the RioCan/Cedar joint venture acquired its first new property, the 128,000 square foot Town Square Plaza shopping center, anchored by a 73,000 square foot Giant Food Stores supermarket, in Temple, Pennsylvania, for approximately $19 million, excluding closing costs.
Sales of Common Stock
In February 2010, the Company closed on a public offering of 7,500,000 newly-issued common shares at $6.60 per share; an additional 1,250,000 shares of common stock was issued to RioCan, generating aggregate net proceeds of approximately $55.3 million to the Company after offering expenses. The exercise of the over-allotment option by the underwriters and an additional purchase by RioCan will generate additional net proceeds of approximately $5.0 million.
Commencing in the fourth quarter of 2009, the Company entered into a Standby Equity Placement Agreement pursuant to which the Company was able to realize cash proceeds of $7.5 million in connection with the sales of stock "at the market" over a period extending through February 2010 at average stock sales prices of approximately $6.81.
Credit Facility
In the fourth quarter of 2009, the Company entered into an amended secured revolving credit facility for stabilized properties in the amount of $285 million, expiring on January 31, 2012, subject to a one-year extension option. The outstanding balance under the facility, after completion of the above-described joint venture arrangements and stock offerings, will be approximately $99 million with availability of approximately $106 million.
Financial Guidance
The Company expects to report FFO for 2010 in a range of $0.60 to $0.70 per share/OP Unit, reflecting a non-cash $0.12 per share/OP Unit reduction for scheduled decreases in amortization of intangible lease liabilities and straight-line rents, but excluding the items noted below, which, individually and collectively, provide particular uncertainty and lack of clear predictability. They include, without limitation, the following:
- Acquisitions of properties, whether by the Company itself or in joint ventures, including acquisition fees and/or other fees attributable thereto;
- Sales or other dispositions of properties, including any related gains or impairment charges;
- Mark-to-market adjustments relating to stock-based compensation; and
- Other non-recurring transactions.
Supplemental Financial Information
The Company has issued "Supplemental Financial Information" for the period ended December 31, 2009 and has filed such information today as an exhibit to Form 8-K, which will also be available on the Company's website at http:///www.cedarshoppingcenters.com.
Reference to Form 10-K
Interested parties are urged to review the Form 10-K to be filed with the Securities and Exchange Commission for the year ended December 31, 2009, when available, for further details. The Form 10-K can also be linked through the "Investor Relations" section of the Company's website.
Investor Conference Call
The Company will host a conference call on Thursday, March 4, 2010, at 10:00 AM Eastern Standard Time to discuss the fourth quarter results. The conference call can be accessed by dialing (888) 471-3840 or (719) 457-2603 for international participants. A live webcast of the conference call will be available online on the Company's website at www.cedarshoppingcenters.com. A replay of the call will be available from 1:00 PM Eastern Standard Time on March 4, 2010, until midnight Eastern Daylight Time on March 18, 2010. The replay dial-in numbers are (888) 203-1112 or (719) 457-0820 for international callers. Please use passcode 2269314 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 Shopping Centers
Cedar Shopping Centers, Inc. is a fully-integrated real estate investment trust which focuses primarily on the ownership, operation, development and redevelopment of "bread and butter"® supermarket-anchored shopping centers in coastal mid-Atlantic and New England states. The Company presently owns (both wholly-owned and in joint venture) and manages approximately 13 million square feet of GLA at 119 shopping center properties, of which more than 75% are anchored by supermarkets and/or drugstores with average remaining lease terms of approximately 11 years. The Company's stabilized properties have an occupancy rate of approximately 95%.
Forward-Looking Statements
Statements made or incorporated by reference in this press release include certain "forward-looking statements". Forward-looking statements include, without limitation, statements containing the words "anticipates", "believes", "expects", "intends", "future", and words of similar import which express the Company's beliefs, expectations or intentions regarding future performance or future events or trends. While forward-looking statements reflect good faith beliefs, expectations, or intentions, they are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements as a result of factors outside of the Company's control. Certain factors that might cause such differences include, but are not limited to, the following: real estate investment considerations, such as the effect of economic and other conditions in general and in the Company's market areas in particular; the financial viability of the Company's tenants (including an inability to pay rent, filing for bankruptcy protection, closing stores and vacating the premises); the continuing availability of acquisition, development and redevelopment opportunities, on favorable terms; the availability of equity and debt capital (including the availability of construction financing) in the public and private markets; the availability of suitable joint venture partners and potential purchasers of the Company's properties if offered for sale; the ability of the Company's joint venture partner to fund its share of future property acquisitions; changes in interest rates; the fact that returns from acquisition, development and redevelopment activities may not be at expected levels or at expected times; risks inherent in ongoing development and redevelopment projects including, but not limited to, cost overruns resulting from weather delays, changes in the nature and scope of development and redevelopment efforts, changes in governmental regulations relating thereto, and market factors involved in the pricing of material and labor; the need to renew leases or re-let space upon the expiration or termination of current leases and incur applicable required replacement costs; and the financial flexibility of the Company and its joint venture partners to repay or refinance debt obligations when due and to fund tenant improvements and capital expenditures.
Non-GAAP Financial Measures – FFO
Funds From Operations ("FFO") is a widely-recognized non-GAAP financial measure for REITs that the Company believes, when considered with financial statements determined in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. In addition, FFO is useful to investors as it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciable assets. Investors should review FFO, along with GAAP net income, when trying to understand an equity REIT's operating performance. The Company presents FFO because the Company considers it an important supplemental measure of its operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. Among other things, the Company uses FFO or an adjusted FFO-based measure (1) as one of several criteria to determine performance-based bonuses for members of senior management, (2) in performance comparisons with other shopping center REITs, and (3) to measure compliance with certain financial covenants under the terms of the Company's secured revolving credit facilities.
The Company computes FFO in accordance with the "White Paper" on FFO published by the National Association of Real Estate Investment Trusts ("NAREIT"), which defines FFO as net income applicable to common shareholders (determined in accordance with GAAP), excluding gains or losses from debt restructurings and sales of properties, plus real estate-related depreciation and amortization, and after adjustments for partnerships and joint ventures (which are computed to reflect FFO on the same basis).
FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income applicable to common shareholders or to cash flow from operating activities. FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Although FFO is a measure used for comparability in assessing the performance of REITs, as the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another.
The following table sets forth the Company's calculations of FFO for the three and twelve months ended December 31, 2009 and 2008:
Three months ended Dec 31, Year ended Dec 31,
------------------------- -------------------------
2009 2008 2009 2008
------------ ---------- ------------ -----------
Net (loss) income
attributable to
common
shareholders $(29,673,000) $2,885,000 $(24,543,000) $10,498,000
Add (deduct):
Real estate
depreciation and
amortization 17,524,000 12,200,000 55,179,000 49,521,000
Noncontrolling
interests:
Limited partners'
interest (1,136,000) 130,000 (903,000) 477,000
Minority
interests in
consolidated
joint ventures 484,000 557,000 771,000 2,157,000
Minority
interests'
share of FFO
applicable to
consolidated
joint ventures (1,656,000) (1,568,000) (5,787,000) (6,134,000)
Equity in income
of
unconsolidated
joint ventures (296,000) (274,000) (1,098,000) (956,000)
FFO from
unconsolidated
joint ventures 406,000 355,000 1,519,000 1,296,000
Gain on sale of
discontinued
operations (280,000) - (557,000) -
------------ ----------- ----------- -----------
Funds (Used In)
From Operations $(14,627,000) $14,285,000 $24,581,000 $56,859,000
============ =========== =========== ===========
FFO per common
share (assuming
conversion of OP
Units):
Basic $(0.28) $0.31 $0.51 $1.22
====== ===== ===== =====
Diluted $(0.28) $0.31 $0.51 $1.22
====== ===== ===== =====
Weighted average
number of common
shares:
Shares used in
determination of
basic earnings
per share 49,930,000 44,489,000 46,234,000 44,475,000
Additional shares
assuming
conversion of OP
Units (basic) 2,006,000 2,018,000 2,014,000 2,024,000
--------- --------- --------- ---------
Shares used in
determination of
basic FFO per
share 51,936,000 46,507,000 48,248,000 46,499,000
========== ========== ========== ==========
Shares used in
determination of
diluted earnings
per share 49,930,000 44,489,000 46,234,000 44,475,000
Additional shares
assuming
conversion of OP
Units (diluted) 2,006,000 2,018,000 2,014,000 2,024,000
--------- --------- --------- ---------
Shares used in
determination of
diluted FFO per share 51,936,000 46,507,000 48,248,000 46,499,000
========== ========== ========== ==========
CEDAR SHOPPING CENTERS, INC.
Consolidated Balance Sheets
December 31,
-----------------------------
2009 2008
------------- -------------
Assets
Real estate:
Land $358,168,000 $328,425,000
Buildings and improvements 1,317,154,000 1,210,788,000
------------- -------------
1,675,322,000 1,539,213,000
Less accumulated depreciation (164,615,000) (124,387,000)
------------ ------------
Real estate, net 1,510,707,000 1,414,826,000
Real estate to be transferred to a
joint venture 139,743,000 194,952,000
Real estate held for sale -
discontinued operations 11,599,000 32,063,000
Investment in unconsolidated joint
ventures 14,113,000 4,976,000
Cash and cash equivalents 17,164,000 8,231,000
Restricted cash 14,075,000 14,004,000
Rents and other receivables, net 9,745,000 5,818,000
Straight-line rents receivable 14,602,000 12,327,000
Other assets 8,809,000 9,403,000
Deferred charges, net 36,873,000 30,528,000
---------- ----------
Total assets $1,777,430,000 $1,727,128,000
============== ==============
Liabilities and equity
Mortgage loans payable $692,979,000 $613,712,000
Mortgage loans payable - real estate
to be
transferred to a joint venture 94,018,000 77,307,000
Mortgage loans payable -
discontinued operations 7,765,000 17,964,000
Secured revolving credit facilities 257,685,000 304,490,000
Accounts payable and accrued
liabilities 46,902,000 46,548,000
Unamortized intangible lease
liabilities 46,643,000 56,122,000
Liabilities - real estate held for
sale and real estate to be
transferred to a joint venture 4,295,000 5,262,000
--------- ---------
Total liabilities 1,150,287,000 1,121,405,000
------------- -------------
Limited partners' interest in
Operating Partnership 12,656,000 14,271,000
Commitments and contingencies - -
Equity:
Cedar Shopping Centers, Inc.
shareholders' equity:
Preferred stock ($.01 par
value, $25.00 per share
liquidation value, 12,500,000
shares authorized, 3,550,000
shares issued and outstanding) 88,750,000 88,750,000
Common stock ($.06 par value,
150,000,000 shares authorized
52,139,000 and 44,468,000 shares,
respectively, issued and
outstanding) 3,128,000 2,668,000
Treasury stock (981,000 and 713,000
shares, respectively, at cost) (9,688,000) (9,175,000)
Additional paid-in capital 621,299,000 576,083,000
Cumulative distributions in
excess of net income (161,328,000) (127,043,000)
Accumulated other comprehensive loss (2,992,000) (7,256,000)
---------- ----------
Total Cedar Shopping Centers,
Inc. shareholders' equity 539,169,000 524,027,000
----------- -----------
Noncontrolling interests:
Minority interests in
consolidated joint ventures 67,229,000 58,150,000
Limited partners' interest in
Operating Partnership 8,089,000 9,275,000
--------- ---------
Total noncontrolling interests 75,318,000 67,425,000
---------- ----------
Total equity 614,487,000 591,452,000
----------- -----------
Total liabilities and equity $1,777,430,000 $1,727,128,000
============== ==============
CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Operations
(unaudited)
Three months ended Year ended
December 31, December 31,
------------------------ --------------------------
2009 2008 2009 2008
----------- ----------- ------------ ------------
Revenues:
Rents $37,071,000 $35,632,000 $145,439,000 $137,524,000
Expense recoveries 8,735,000 7,741,000 34,837,000 31,934,000
Other 985,000 314,000 1,435,000 1,207,000
------- ------- --------- ---------
Total revenues 46,791,000 43,687,000 181,711,000 170,665,000
---------- ---------- ----------- -----------
Expenses:
Operating,
maintenance and
management 9,229,000 7,485,000 34,478,000 29,477,000
Real estate and
other property-
related taxes 5,358,000 5,050,000 20,977,000 18,991,000
General and
administrative 3,353,000 1,425,000 10,166,000 8,586,000
Impairments 23,636,000 - 23,636,000 -
Terminated
projects and
acquisition
transaction costs
419,000 848,000 4,367,000 855,000
Depreciation and
amortization 17,185,000 12,001,000 54,257,000 48,741,000
---------- ---------- ---------- ----------
Total expenses 59,180,000 26,809,000 147,881,000 106,650,000
---------- ---------- ----------- -----------
Operating (loss)
income (12,389,000) 16,878,000 33,830,000 64,015,000
Non-operating income
and expense:
Interest expense,
including
amortization of
deferred
financing costs (14,068,000) (11,793,000) (49,785,000) (44,934,000)
Interest income 35,000 14,000 63,000 284,000
Equity in income
of unconsolidated
joint ventures 296,000 274,000 1,098,000 956,000
Gain on sales of
land parcels 285,000 - 521,000 -
----------- ----------- ----------- -----------
Total non-operating
income and expense (13,452,000) (11,505,000) (48,103,000) (43,694,000)
----------- ----------- ----------- -----------
(Loss) income
before discontinued
operations (25,841,000) 5,373,000 (14,273,000) 20,321,000
(Loss) income from
discontinued
operations (2,795,000) 169,000 (3,083,000) 688,000
Gain on sales of
discontinued
operations 280,000 - 557,000 -
------- - ------- -
Total discontinued
operations (2,515,000) 169,000 (2,526,000) 688,000
---------- ------- ---------- -------
Net (loss) income (28,356,000) 5,542,000 (16,799,000) 21,009,000
Less, net (income)
loss attributable
to noncontrolling
interests:
Minority
interests in
consolidated
joint ventures (484,000) (557,000) (771,000) (2,157,000)
Limited partners'
interest in
Operating
Partnership 1,136,000 (130,000) 903,000 (477,000)
--------- -------- ------- --------
Total net
(income) loss
attributable to
noncontrolling
interests 652,000 (687,000) 132,000 (2,634,000)
------- -------- ------- ----------
Net (loss) income
attributable to
Cedar Shopping
Centers, Inc. (27,704,000) 4,855,000 (16,667,000) 18,375,000
Preferred
distribution
requirements (1,969,000) (1,970,000) (7,876,000) (7,877,000)
------------ ---------- ------------ -----------
Net (loss) income
attributable to
common
shareholders $(29,673,000) $2,885,000 $(24,543,000) $10,498,000
============ ========== ============ ===========
Per common share
(basic and diluted)
attributable to common
shareholders:
Continuing
operations $(0.54) $0.06 $(0.48) $0.23
Discontinued
operations (0.05) - (0.05) 0.01
----- - ----- ----
$(0.59) $0.06 $(0.53) $0.24
====== ===== ====== =====
Amounts attributable
to Cedar Shopping
Centers, Inc.
common shareholders,
net of limited partners'
interest:
(Loss) income
from continuing
operations $(27,251,000) $2,723,000 $(22,107,000) $9,840,000
(Loss) income
from discontinued
operations (2,692,000) 162,000 (2,973,000) 658,000
Gain on sales of
discontinued
operations 270,000 - 537,000 -
------- - ------- -
Net (loss) income $(29,673,000) $2,885,000 $(24,543,000) $10,498,000
============ ========== ============ ===========
Dividends to common
shareholders $4,696,000 $10,010,000 $9,742,000 $40,027,000
========== =========== ========== ===========
Per common share $0.0900 $0.2250 $0.2025 $0.9000
======= ======= ======= =======
Weighted average
number of common
shares outstanding 49,930,000 44,489,000 46,234,000 44,475,000
========== ========== ========== ==========
CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Cash Flows
(unaudited)
Three months ended Year ended
December 31, December 31,
------------------------ --------------------------
2009 2008 2009 2008
----------- ---------- ------------ -----------
Cash flow from
operating
activities:
Net (loss)
income $(28,356,000) $5,542,000 $(16,799,000) $21,009,000
Adjustments to
reconcile net
(loss) income
to net cash
provided by
operating
activities:
Non-cash provisions:
Equity in
income of
unconsolidated
joint venture (297,000) (274,000) (1,098,000) (956,000)
Distributions
from
unconsolidated
joint venture 206,000 200,000 921,000 834,000
Impairments 23,636,000 - 23,636,000 -
Terminated
projects and
acquisition
transaction
costs 419,000 450,000 3,094,000 463,000
Impairments -
discontinued
operations 2,837,000 - 3,559,000 -
Gain on sales
of real estate (565,000) - (1,078,000) -
Straight-line
rents
receivable (826,000) (740,000) (2,874,000) (2,876,000)
Depreciation
and
amortization 17,384,000 12,270,000 55,179,000 49,802,000
Amortization
of intangible
lease
liabilities (2,902,000) (4,032,000) (13,522,000) (14,409,000)
Amortization/
market price
adjustments
relating to
stock-based
compensation 720,000 (1,139,000) 2,433,000 1,099,000
Amortization
of deferred
financing
costs 1,238,000 563,000 3,648,000 1,790,000
Increases/decreases
in operating
assets and
liabilities:
Rents and other
receivables,
net (1,517,000) 2,043,000 (3,855,000) 1,822,000
Prepaid
expenses and
other (450,000) 3,188,000 (5,168,000) 153,000
Accounts
payable and
accrued
expenses 4,664,000 2,288,000 2,566,000 2,084,000
--------- --------- --------- ---------
Net cash provided by
operating activities 16,191,000 20,359,000 50,642,000 60,815,000
---------- ---------- ---------- ----------
Cash flow from
investing activities:
Expenditures for
real
estate and
improvements (21,994,000) (60,860,000) (108,300,000) (131,874,000)
Proceeds from
transfers to
unconsolidated
joint venture 33,389,000 - 33,389,000 -
Net proceeds from
sales
of real estate 3,270,000 - 6,752,000 -
Purchase of
consolidated joint
venture minority
interests - - - (17,454,000)
Investment in
unconsolidated
joint
venture - - (350,000) (1,097,000)
Construction
escrows and other 684,000 (210,000) (217,000) (965,000)
------- -------- -------- --------
Net cash provided by
(used in)
investing activities 15,349,000 (61,070,000) (68,726,000) (151,390,000)
---------- ----------- ----------- ------------
Cash flow from
financing activities:
Net (repayments)/
advances (to)/from
revolving credit
facilities (65,794,000) 29,800,000 (46,805,000) 114,050,000
Proceeds from
mortgage
financings 9,362,000 25,791,000 60,950,000 106,738,000
Mortgage repayments (2,449,000) (2,477,000) (18,202,000) (93,317,000)
Payments of debt
financing costs (7,150,000) (650,000) (9,973,000) (5,062,000)
Noncontrolling
interests:
Contributions
from
consolidated
joint
venture minority
interests, net - 2,123,000 12,212,000 6,383,000
Distributions to
consolidated
joint
venture minority
interests (1,793,000) (3,161,000) (3,906,000) (3,427,000)
Redemption of
Operating
Partnership
Units - (454,000) - (122,000)
Distributions to
limited partners - - (227,000) (1,822,000)
Proceeds from the
sales
of common stock 40,890,000 - 40,890,000 -
Proceeds from
standby equity
advance not
settled 5,000,000 - 5,000,000 -
Preferred stock
distributions (1,969,000) (1,970,000) (7,876,000) (7,877,000)
Distributions to
common
shareholders - (10,010,000) (5,046,000) (40,027,000)
--- ----------- ---------- -----------
Net cash (used in)
provided by
financing activities (23,903,000) 38,992,000 27,017,000 75,517,000
----------- ---------- ---------- ----------
Net increase
(decrease) in cash
and cash equivalents 7,637,000 (1,719,000) 8,933,000 (15,058,000)
Cash and cash
equivalents at
beginning of period 9,527,000 9,950,000 8,231,000 23,289,000
--------- --------- --------- ----------
Cash and cash
equivalents
at end of period $17,164,000 $8,231,000 $17,164,000 $8,231,000
=========== ========== =========== ==========
SOURCE Cedar Shopping Centers, Inc.
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