Cedar Shopping Centers Secures $33 Million Fixed-Rate Financing on Three Shopping Center Properties

PORT WASHINGTON, N.Y., July 6 /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE: CDR) ("Cedar") today announced that it placed a fixed-rate, par (no fee) first mortgage loan in the amount of $33 million on three supermarket-anchored properties owned by a joint venture of Cedar Shopping Centers (20%) and RioCan Real Estate Investment Trust of Toronto, Canada (80%).  The loan, provided by New York Life Insurance Company, has a term of five years, with interest at 5%, a loan-to-value ratio of approximately 50-55% and amortization on a 30-year schedule.  The loan is cross-collateralized by mortgages on the three properties.

Of the aggregate $33 million loan, $17.75 million has been allocated to the Blue Mountain Commons shopping center in Harrisburg, Pennsylvania, a 121,000 square foot shopping center anchored by a Giant Food Stores (of Carlisle, Pennsylvania) supermarket of approximately 98,000 square feet.  This property was contributed to the Cedar/RioCan joint venture in December 2009 upon substantial completion of construction.  

An amount of $11 million has been allocated to the Town Square Shopping Center in Temple, Pennsylvania, a 128,000 square foot shopping center anchored by a Giant Food Stores supermarket of approximately 73,000 square feet, a 22,000 square foot AC Moore store and a 20,000 foot PetSmart store.  The property is shadow-anchored by a 127,000 square foot Target store.  This property was purchased in January 2010 by the Cedar/RioCan joint venture.  

The remaining $4.25 million has been allocated to the Sunset Crossing shopping center in Dickson City, Pennsylvania, a 74,000 square foot shopping center anchored by a Giant Food Stores supermarket of approximately 54,000 square feet.  This property was contributed to the Cedar/RioCan joint venture in December 2009.  

Net proceeds to Cedar, estimated at approximately $7 million, will be used to further reduce the outstanding balance under the Company's $285 million floating rate credit facility for stabilized properties to approximately $75 million.

About Cedar Shopping Centers, Inc.

Cedar Shopping Centers, Inc. is a fully-integrated real estate investment trust which focuses primarily on 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 and operates (both wholly-owned and in joint venture) 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.

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

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $8.4 billion as at March 31, 2010. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 265 retail properties, including 12 under development, containing an aggregate of over 60 million square feet. RioCan owns an 80% interest in eight grocery anchored shopping centres in the United States through its joint venture arrangement with Cedar Shopping Centers, Inc.  In addition, RioCan owns a 14% equity interest in Cedar. For further information, please refer to RioCan's website at www.riocan.com.

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.

SOURCE Cedar Shopping Centers, Inc.