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Cedar Realty Trust Reports Second Quarter 2014 Results

PORT WASHINGTON, N.Y., Aug. 6, 2014 /PRNewswire/ -- Cedar Realty Trust, Inc. (NYSE: CDR) today reported results for the second quarter ended June 30, 2014.

Highlights

  • Operating funds from operations (FFO) of $0.14 per diluted share
  • Same-property net operating income (NOI) increased 2.0%
  • Signed 61 new and renewal leases for 380,000 square feet
  • Comparable cash-basis lease spreads of 8.9%
  • Total portfolio 93.3% leased and same-property portfolio 93.8% leased at quarter-end
  • Raised low end of 2014 Operating FFO guidance to a new range of $0.52 to $0.54 per diluted share

"In addition to our consistent operating results, we are pleased with the improving quality of our shopping center portfolio," commented Bruce Schanzer, President and CEO. "As a result of our capital recycling efforts, we have disposed of four properties for $65.3 million with an average three-mile population density of 22,000 and acquired a property for $92.3 million with a three-mile population density of 325,000. These ongoing portfolio improvements will enable us to drive increases in shareholder value."

Financial Results

Operating FFO for second quarter 2014 was $11.2 million or $0.14 per diluted share, compared to $9.0 million or $0.12 per diluted share for the same period in 2013. Operating FFO for six months ended June 30, 2014 was $21.4 million or $0.27 per diluted share, compared to $17.7 million or $0.24 per diluted share for the same period in 2013.

Net income attributable to common shareholders for second quarter 2014 was $13.5 million or $0.17 per diluted share, compared to net income of $977,000 or $0.01 per diluted share for the same period in 2013. Net income attributable to common shareholders for six months ended June 30, 2014 was $11.6 million or $0.15 per diluted share, compared to net income of $65,000 or $0.00 per diluted share for the same period in 2013.

Portfolio Results

Same-property NOI increased 2.0% for second quarter 2014 compared to the same period in 2013. This figure includes the impact of re-leasing the dark anchor at Oakland Commons with a Walmart Neighborhood Market. Same-property NOI growth, excluding the re-leasing impact was 1.0%.

During second quarter 2014, the Company signed 61 leases for 380,000 square feet. On a comparable space basis, the Company leased 355,000 square feet at a positive lease spread of 8.9% on a cash basis (new leases increased 8.0% and renewals increased 9.0%).

The Company continues to make progress in its capital recycling efforts, directed towards upgrading the quality of its shopping center portfolio. On March 21, 2014, the Company completed the $92.3 million acquisition of Quartermaster Plaza, with 456,000 leasable square feet, a present average base rent of $13.90 per square foot, and a population density of approximately 325,000 people within a three-mile radius. Further, commencing in the second quarter of 2014 through the recent sale of Carbondale Plaza on July 18, 2014, the Company has sold four properties for an aggregate of $65.3 million, having an average of 138,000 leasable square feet per property, an average base rent of $9.85 per square foot, and an average population density of approximately 22,000 people within a three-mile radius.

The Company's total portfolio, excluding properties held for sale, was 93.3% leased at June 30, 2014, compared to 93.6% at December 31, 2013 and 92.7% at June 30, 2013. The Company's same-property portfolio was 93.8% leased at June 30, 2014, compared to 94.3% at December 31, 2013 and 93.8% at June 30, 2013.

Balance Sheet

As of June 30, 2014, the Company has $165.8 million available under its revolving credit facility and reported net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) of 7.7 times. Additionally, thus far in 2014, the Company has repaid approximately $135 million of secured mortgage debt with proceeds from the Company's previously-announced $150 million in unsecured term loans, thereby improving balance sheet flexibility.

2014 Guidance

The Company raised the low end of its 2014 Operating FFO guidance to a new range of $0.52 to $0.54 per diluted share from the previous range of $0.51 to $0.54 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, 2014 to shareholders of record as of the close of business on August 8, 2014.

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, 2014. 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, 2014, 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, 2014, until midnight (ET) on August 20, 2014. The replay dial-in numbers are (877) 870-5176 or (1) (858) 384-5517 for international callers. Please use passcode 13583882 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 60 properties, with approximately 9.4 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. 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, 2013, 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



2014


2013



(unaudited)



ASSETS





Real estate





Land


$                      313,774,000


$                      276,747,000

Buildings and improvements


1,160,294,000


1,101,084,000



1,474,068,000


1,377,831,000

Less accumulated depreciation


(253,558,000)


(236,784,000)

Real estate, net


1,220,510,000


1,141,047,000

Real estate held for sale/conveyance 


51,607,000


129,945,000

Cash and cash equivalents


4,037,000


3,973,000

Restricted cash


10,297,000


11,063,000

Receivables


19,581,000


18,100,000

Other assets and deferred charges, net


28,488,000


27,798,000

TOTAL ASSETS


$                   1,334,520,000


$                   1,331,926,000






LIABILITIES AND EQUITY





Mortgage loans payable


$                      425,245,000


$                      509,308,000

Mortgage loans payable - real estate held for sale/conveyance 


6,618,000


29,832,000

Unsecured revolving credit facility


76,500,000


153,500,000

Unsecured term loans


200,000,000


50,000,000

Accounts payable and accrued liabilities


19,277,000


22,666,000

Unamortized intangible lease liabilities


25,911,000


25,509,000

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


1,092,000


5,463,000

Total liabilities


754,643,000


796,278,000






Noncontrolling interest - limited partners' mezzanine OP Units


409,000


414,000






Commitments and contingencies


-


-






Equity:





Cedar Realty Trust, Inc. shareholders' equity:





Preferred stock 


190,661,000


190,661,000

Common stock and other shareholders' equity


382,525,000


337,016,000

Total Cedar Realty Trust, Inc. shareholders' equity


573,186,000


527,677,000

Noncontrolling interests:





Minority interests in consolidated joint ventures


3,329,000


4,202,000

Limited partners' OP Units


2,953,000


3,355,000

Total noncontrolling interests


6,282,000


7,557,000

Total equity


579,468,000


535,234,000

TOTAL LIABILITIES AND EQUITY


$                   1,334,520,000


$                   1,331,926,000











 

CEDAR REALTY TRUST, INC.

Condensed Consolidated Statements of Operations

(unaudited)












Three months ended June 30,


Six months ended June 30,



2014


2013


2014


2013










REVENUES









Rents  


$                  29,633,000


$                  27,295,000


$                  58,005,000


$                  54,624,000

Expense recoveries


7,255,000


6,463,000


16,175,000


14,470,000

Other


181,000


163,000


236,000


386,000

Total revenues


37,069,000


33,921,000


74,416,000


69,480,000

PROPERTY OPERATING EXPENSES









Operating, maintenance and management


6,221,000


5,354,000


14,247,000


12,147,000

Real estate and other property-related taxes


4,602,000


4,394,000


9,109,000


8,860,000

Total property operating expenses


10,823,000


9,748,000


23,356,000


21,007,000










PROPERTY OPERATING INCOME


26,246,000


24,173,000


51,060,000


48,473,000










OTHER EXPENSES









General and administrative


3,780,000


3,456,000


7,304,000


6,726,000

Employee termination costs


-


-


-


106,000

Acquisition costs 


-


-


2,870,000


-

Impairment charges/(reversal)


1,725,000


-


1,807,000


(1,100,000)

Depreciation and amortization


9,693,000


9,452,000


19,141,000


18,953,000

Total other expenses


15,198,000


12,908,000


31,122,000


24,685,000










OPERATING INCOME


11,048,000


11,265,000


19,938,000


23,788,000










NON-OPERATING INCOME AND EXPENSES









Interest expense


(8,124,000)


(8,925,000)


(16,182,000)


(17,812,000)

Early extinguishment of debt costs


(62,000)


(21,000)


(163,000)


(106,000)

Gain on sales


3,810,000


-


3,810,000


346,000

Total non-operating income and expense


(4,376,000)


(8,946,000)


(12,535,000)


(17,572,000)










INCOME FROM CONTINUING OPERATIONS


6,672,000


2,319,000


7,403,000


6,216,000










DISCONTINUED OPERATIONS









Income from operations


751,000


869,000


1,794,000


824,000

Impairment reversals, net


183,000


-


119,000


-

Gain on extinguishment of debt obligations


1,423,000


1,298,000


1,423,000


1,298,000

Gain on sales 


7,963,000


-


7,963,000


-

Total income from discontinued operations


10,320,000


2,167,000


11,299,000


2,122,000










NET INCOME


16,992,000


4,486,000


18,702,000


8,338,000










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









Minority interests in consolidated joint ventures


147,000


97,000


213,000


103,000

Limited partners' interest in Operating Partnership


(79,000)


(4,000)


(68,000)


(1,000)

Total net loss (income) attributable to noncontrolling interests


68,000


93,000


145,000


102,000










NET INCOME ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.


17,060,000


4,579,000


18,847,000


8,440,000










Preferred stock dividends


(3,602,000)


(3,602,000)


(7,204,000)


(7,209,000)

Preferred stock redemption costs


-


-


-


(1,166,000)










NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS


$                  13,458,000


$                       977,000


$                  11,643,000


$                         65,000



















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









Continuing operations


$                             0.03


$                            (0.02)


$                            (0.00)


$                            (0.03)

Discontinued operations


0.14


0.03


0.15


0.03



$                             0.17


$                             0.01


$                             0.15


$                            (0.00)










Weighted average number of common shares - basic and diluted


75,531,000


68,345,000


75,076,000


68,342,000



















 

CEDAR REALTY TRUST, INC.

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

and Operating Funds From Operations












Three months ended June 30,


Six months ended June 30,



2014


2013


2014


2013










Net income attributable to common shareholders


$        13,458,000


$              977,000


$        11,643,000


$                65,000

Real estate depreciation and amortization


9,609,000


9,657,000


18,970,000


19,386,000

Limited partners' interest


79,000


4,000


68,000


1,000

Impairment charges/(reversal)


1,542,000


-


1,688,000


(1,100,000)

Gain on sales 


(11,773,000)


-


(11,773,000)


(346,000)

Consolidated minority interests:









Share of (loss) 


(147,000)


(97,000)


(213,000)


(103,000)

Share of FFO


(226,000)


(278,000)


(533,000)


(695,000)

Funds From Operations ("FFO")


12,542,000


10,263,000


19,850,000


17,208,000

Adjustments for items affecting comparability:









Acquisition costs 


-


-


2,870,000


-

Early extinguishment of debt costs, net


62,000


21,000


150,000


543,000

Gain on extinguishment of debt obligations


(1,423,000)


(1,298,000)


(1,423,000)


(1,298,000)

Employee termination costs


-


-


-


106,000

Preferred stock redemption costs


-


-


-


1,166,000

Operating Funds From Operations ("Operating FFO")


$        11,181,000


$          8,986,000


$          21,447,000


$         17,725,000










FFO per diluted share:


$                   0.16


$                    0.14


$                     0.25


$                    0.24










Operating FFO per diluted share:


$                   0.14


$                    0.12


$                     0.27


$                    0.24










Weighted average number of diluted common shares:









Common shares


79,223,000


72,301,000


78,756,000


72,122,000

OP Units


465,000


281,000


472,000


281,000



79,688,000


72,582,000


79,228,000


72,403,000

 

SOURCE Cedar Realty Trust, Inc.

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