Cedar Realty Trust Reports First Quarter 2014 Results - wave3.com-Louisville News, Weather & Sports

Cedar Realty Trust Reports First Quarter 2014 Results

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SOURCE Cedar Realty Trust, Inc.

PORT WASHINGTON, N.Y., May 6, 2014 /PRNewswire/ -- Cedar Realty Trust, Inc. (NYSE: CDR) today reported results for the first quarter ended March 31, 2014.

Highlights

  • Operating funds from operations (FFO) of $0.13 per diluted share
  • Same-property net operating income (NOI) increased 2.7%
  • Signed 40 new and renewal leases for 328,000 square feet
  • Comparable cash-basis lease spreads of 9.2%
  • Total portfolio 93.5% leased and same-property portfolio 94.1% leased at quarter-end
  • Acquired Quartermaster Plaza in Philadelphia for $92.3 million

"During the first quarter we continued making progress on all facets of our long term strategic plan.  From leasing, to value-added investing and capital recycling, we are consistently building long term shareholder value," commented Bruce Schanzer, President and CEO. 

Financial Results

Operating FFO for first quarter 2014 was $10.3 million or $0.13 per diluted share, compared to $8.7 million or $0.12 per diluted share for the same period in 2013.

Net loss attributable to common shareholders for first quarter 2014 was $(1.8) million or $(0.03) per diluted share, compared to net loss of $(0.9) million or $(0.02) per diluted share for the same period in 2013.  

Portfolio Results

Same-property NOI increased 2.7% for first quarter 2014 compared to the same period in 2013. This figure includes the favorable impact of re-leasing the dark anchor at Oakland Commons with a Walmart Neighborhood Market. Same-property NOI growth, excluding this favorable re-leasing impact was 1.6%.

During first quarter 2014, the Company signed 40 leases for 328,000 square feet. On a comparable space basis, the Company leased 319,000 square feet at a positive lease spread of 9.2% on a cash basis (new leases increased 18.5% and renewals increased 8.6%).

The Company's total portfolio, excluding properties held for sale, was 93.5% leased at March 31, 2014, compared to 93.6% at December 31, 2013 and 92.8% at March 31, 2013. The Company's same-property portfolio was 94.1% leased at March 31, 2014, compared to 94.3% at December 31, 2013 and 93.9% at March 31, 2013.

Acquisition and Disposition Activity

On February 25, 2014, the Company sold Harbor Square (f/k/a Shore Mall) for $25.0 million.

On March 21, 2014, the Company acquired Quartermaster Plaza in Philadelphia, Pennsylvania, a 456,000 square foot grocery-anchored shopping center. The shopping center is 98% occupied and anchored by a BJ's Wholesale Club. The asset was acquired for $92.3 million including the assumption of $53.4 million of fixed rate debt.

Balance Sheet

On January 13, 2014, the Company issued 6.9 million common shares for net proceeds of $41.3 million.

On February 11, 2014, the Company closed on $150.0 million of unsecured term loans effectively prefunding all of its 2014 mortgage debt maturities. The unsecured term loans consist of a five-year $75 million term loan for which the proceeds were borrowed at closing and a seven-year $75 million term loan that allows for delayed draws of the proceeds through July 1, 2014. The Company also entered into forward LIBOR swap agreements that result in a an effective fixed interest rate of 3.37% for the five-year term loan and 4.27% for the seven-year term loan.

As of March 31, 2014, the Company has $133.2 million available under its revolving credit facility and reported net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) of 7.9 times. The net debt to EBITDA ratio increased as a result of the recent $92.3 million acquisition of Quartermaster Plaza. This acquisition was initially funded with the assumption of property related debt and the Company's revolving credit facility. The Company intends to ultimately fund this acquisition and reduce net debt to EBITDA through asset sales related to its ongoing capital recycling efforts.

2014 Guidance

The Company reaffirms its previously announced 2014 Operating FFO guidance 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 May 20, 2014 to shareholders of record as of the close of business on May 9, 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 March 31, 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, May 6, 2014, 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 6, 2014, until midnight (ET) on May 20, 2014. The replay dial-in numbers are (877) 870-5176 or (1) (858) 384-5517 for international callers. Please use passcode 13578269 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 62 properties, with approximately 9.5 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










March 31,


December 31




2014


2013




(unaudited)




ASSETS






Real estate






Land


$                      320,025,000


$                      280,355,000


Buildings and improvements


1,174,462,000


1,119,106,000




1,494,487,000


1,399,461,000


Less accumulated depreciation


(249,907,000)


(241,598,000)


Real estate, net


1,244,580,000


1,157,863,000


Real estate held for sale/conveyance 


84,200,000


112,837,000


Cash and cash equivalents


5,079,000


3,973,000


Restricted cash


12,729,000


11,063,000


Receivables


20,473,000


18,170,000


Other assets and deferred charges, net


32,686,000


28,020,000


TOTAL ASSETS


$                   1,399,747,000


$                   1,331,926,000








LIABILITIES AND EQUITY






Mortgage loans payable


$                      509,679,000


$                      515,968,000


Mortgage loans payable - real estate held for sale/conveyance 


22,549,000


23,172,000


Unsecured revolving credit facility


119,000,000


153,500,000


Unsecured term loans


125,000,000


50,000,000


Accounts payable and accrued liabilities


21,622,000


22,666,000


Unamortized intangible lease liabilities


28,346,000


25,509,000


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


1,253,000


5,463,000


Total liabilities


827,449,000


796,278,000








Noncontrolling interest - limited partners' mezzanine OP Units


404,000


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


374,187,000


337,016,000


Total Cedar Realty Trust, Inc. shareholders' equity


564,848,000


527,677,000


Noncontrolling interests:






Minority interests in consolidated joint ventures


4,136,000


4,202,000


Limited partners' OP Units


2,910,000


3,355,000


Total noncontrolling interests


7,046,000


7,557,000


Total equity


571,894,000


535,234,000


TOTAL LIABILITIES AND EQUITY


$                   1,399,747,000


$                   1,331,926,000







 


CEDAR REALTY TRUST, INC.


Condensed Consolidated Statements of Operations


(unaudited)











Three months ended March 31,





2014


2013










REVENUES







Rents  


$                  28,372,000


$                  27,329,000



Expense recoveries


8,920,000


8,007,000



Other


55,000


223,000



Total revenues


37,347,000


35,559,000



PROPERTY OPERATING EXPENSES







Operating, maintenance and management


8,026,000


6,795,000



Real estate and other property-related taxes


4,507,000


4,465,000



Total property operating expenses


12,533,000


11,260,000










PROPERTY OPERATING INCOME


24,814,000


24,299,000










OTHER EXPENSES







General and administrative


3,524,000


3,270,000



Employee termination costs


-


106,000



Impairment charges/(reversal)


82,000


(1,100,000)



Acquisition costs 


2,870,000


-



Depreciation and amortization


9,448,000


9,501,000



Total other expenses


15,924,000


11,777,000










OPERATING INCOME


8,890,000


12,522,000










NON-OPERATING INCOME AND EXPENSES







Interest expense


(8,058,000)


(8,887,000)



Early extinguishment of debt costs


(101,000)


(85,000)



Gain on sales


-


346,000



Total non-operating income and expense


(8,159,000)


(8,626,000)










INCOME FROM CONTINUING OPERATIONS


731,000


3,896,000










DISCONTINUED OPERATIONS







Income (loss) from operations


1,043,000


(44,000)



Impairment charges


(64,000)


-



Total income (loss) from discontinued operations


979,000


(44,000)










NET INCOME


1,710,000


3,852,000










Less, net loss attributable to noncontrolling interests:







Minority interests in consolidated joint ventures


66,000


6,000



Limited partners' interest in Operating Partnership


11,000


3,000



Total net loss attributable to noncontrolling interests


77,000


9,000










NET INCOME ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.


1,787,000


3,861,000










Preferred stock dividends


(3,602,000)


(3,607,000)



Preferred stock redemption costs


-


(1,166,000)










NET (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS


$                   (1,815,000)


$                      (912,000)

















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







Continuing operations


$                            (0.04)


$                            (0.02)



Discontinued operations


0.01


(0.00)





$                            (0.03)


$                            (0.02)










Weighted average number of common shares - basic and diluted


74,620,000


68,339,000









 

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,




2014


2013








Net (loss) attributable to common shareholders


$       (1,815,000)


$          (912,000)


Real estate depreciation and amortization


9,361,000


9,729,000


Limited partners' interest


(11,000)


(3,000)


Impairment charges/(reversal)


146,000


(1,100,000)


Gain on sales 


-


(346,000)


Consolidated minority interests:






Share of (loss) 


(66,000)


(6,000)


Share of FFO


(307,000)


(417,000)


Funds From Operations ("FFO")


7,308,000


6,945,000


Adjustments for items affecting comparability:






Acquisition costs 


2,870,000


-


Early extinguishment of debt costs, net


88,000


522,000


Employee termination costs


-


106,000


Preferred stock redemption costs


-


1,166,000


Operating Funds From Operations ("Operating FFO")


$      10,266,000


$         8,739,000








FFO per diluted share:


$                   0.09


$                   0.10








Operating FFO per diluted share:


$                   0.13


$                   0.12














Weighted average number of diluted common shares:






Common shares


78,289,000


71,944,000


OP Units


480,000


281,000




78,769,000


72,225,000








 


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