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Press release from PR Newswire

Cedar Realty Trust, Inc. Reports First Quarter 2013 Results

Thursday, May 09, 2013

Cedar Realty Trust, Inc. Reports First Quarter 2013 Results

16:01 EDT Thursday, May 09, 2013

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.

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

 

SOURCE Cedar Realty Trust, Inc.

For further information: Cedar Realty Trust, Inc., Investor Relations, Brad Cohen, (203) 682-8211

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