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Section 1: 8-K (8-K)

cdr-8k_20190207.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

Current Report

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 7, 2019

 

CEDAR REALTY TRUST, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Maryland

(State or Other Jurisdiction of Incorporation)

 

001-31817

 

42-1241468

(Commission

File Number)

 

(IRS Employer

Identification No.)

44 South Bayles Avenue

Port Washington, New York 11050

(Address of Principal Executive Offices) (Zip Code)

(516) 767-6492

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.    Emerging Growth Company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

 


 

Items 2.02 and 7.01.Results of Operations and Financial Condition, and Regulation FD.

 

 On February 7, 2019, Cedar Realty Trust, Inc. issued a press release announcing its comparative financial results as well as certain supplemental financial information for the three months ended December 31, 2018. The press release and the supplemental financial information are furnished as Exhibit 99.1 and are incorporated herein by reference.

 

The information in this Current Report on Form 8-K is furnished under Item 2.02 – “Results of Operations and Financial Condition” and Item 7.01 – “Regulation FD Disclosure”. This information, including the exhibits attached hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).  The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act except as expressly set forth by specific reference in any such filing.

 

 Item 9.01.Financial Statements and Exhibits.

 

(d) Exhibits.

 

 

99.1

Cedar Realty Trust, Inc. Supplemental Financial Information at December 31, 2018 (including press release dated February 7, 2019).

 


 


 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

CEDAR REALTY TRUST, INC.

 

 

/s/ PHILIP R. MAYS

Philip R. Mays

Executive Vice President, Chief Financial Officer and Treasurer

(Principal financial officer)

 

Dated: February 7, 2019

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

cdr-ex991_6.htm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

CEDAR REALTY TRUST, INC.

Supplemental Financial Information

December 31, 2018

(unaudited)

TABLE OF CONTENTS

 

Earnings Press Release

 

4 - 6

 

 

 

Financial Information

 

 

Condensed Consolidated Balance Sheets  

 

7

Condensed Consolidated Statements of Operations

 

8

Supporting Schedules to Consolidated Statements

 

9

Funds From Operations and Additional Disclosures

 

10

EBITDA for Real Estate and Additional Disclosures

 

11

Summary of Outstanding Debt and Maturities

 

12

 

 

 

Portfolio Information

 

 

Real Estate Summary

 

13 - 15

Leasing Activity

 

16

Tenant Concentration

 

17

Lease Expirations

 

18

Same-Property Net Operating Income

 

19

Summary of Acquisitions, Dispositions and Real Estate Held for Sale

 

        20

 

 

 

Non-GAAP Financial Disclosures

 

        21

 

 

 

2

 


 

Forward-Looking Statements

The information contained in this Supplemental Financial Information is unaudited and does not purport to disclose all items required by accounting principles generally accepted in the United States (“GAAP”). In addition, certain statements made or incorporated by reference herein are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, 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. Factors which could cause actual results to differ materially from current expectations include, among others: adverse general economic conditions in the United States and uncertainty in the credit and retail markets; financing risks, such as the inability to obtain new financing or refinancing on favorable terms as the result of market volatility or instability; risks related to the market for retail space generally, including reductions in consumer spending, variability in retailer demand for leased space, tenant bankruptcies, adverse impact of internet sales demand, ongoing consolidation in the retail sector and changes in economic conditions and consumer confidence; risks endemic to real estate and the real estate industry generally; the impact of the Company’s level of indebtedness on operating performance; inability of tenants to meet their rent and other lease obligations; adverse impact of new technology and e-commerce developments on the Company’s tenants; competitive risk; risks related to the geographic concentration of the Company’s properties in the Washington D.C. to Boston corridor; the effects of natural and other disasters; and the inability of the Company to realize anticipated returns from its redevelopment activities. Please refer to the documents filed by Cedar Realty Trust, Inc. with the SEC, specifically the Company’s most recent Annual Report on Form 10-K, as it may be updated or supplemented in the Company’s Quarterly Reports on Form 10-Q and the Company’s other filings with the SEC, which identify additional risk factors that could cause actual results to differ from those contained in forward-looking statements.


 

 

3

 


 

CEDAR REALTY TRUST REPORTS FOURTH QUARTER

AND FULL YEAR 2018 RESULTS

 

Port Washington, New York – February 7, 2019 – Cedar Realty Trust, Inc. (NYSE:CDR – the “Company”) today reported results for the fourth quarter and full year 2018. Net income attributable to common shareholders was $0.02 per diluted share for the fourth quarter and net loss attributable to common shareholders was $(0.13) per diluted share for the full year 2018.  Other highlights include:

 

Highlights

 

NAREIT-defined funds from operations (FFO) of $0.13 per diluted share for the quarter and $0.49 for the year

Operating funds from operations (Operating FFO) of $0.13 per diluted share for the quarter and $0.58 for the year

Signed 44 new and renewal leases for 331,300 square feet in the quarter and 169 new and renewal leases for 1,370,400 square feet for the year

Comparable cash-basis lease spreads of 6.1% for the quarter and negative (1.4%) for the year

Total portfolio 91.0% leased and same-property portfolio 91.8% leased at year-end

Repurchased 2,774,000 shares of common stock for $9.0 million or $3.25 per share (2,002,000 common shares for $6.7 million or $3.33 per share subsequent to year-end)

 

“We continue to advance our ambitious redevelopment plans while agilely exploiting the public-private market disconnect by selling lower quality centers and using the proceeds to repurchase our shares. We expect the combination of executing our long-term capital allocation strategy with the opportunistic implementation of our share buy-back will lead to long-term value creation for our shareholders,” commented Bruce Schanzer, President and Chief Executive Officer.

 

Financial Results

Net income attributable to common shareholders for the fourth quarter of 2018 was $1.9 million or $0.02 per diluted share, compared to net income of $2.6 million or $0.03 per diluted share for the same period in 2017. Net loss attributable to common shareholders for the full year 2018 was $(10.5) million or $(0.13) per diluted share, compared to net loss of $(2.4) million or $(0.04) per diluted share for the same period in 2017. The principal differences in the comparative three-month results are impairment reversals and early extinguishment of debt costs in 2017. The principal differences in the comparative full year results are lease termination income, gain on sales, impairment charges, preferred stock redemption and early extinguishment of debt costs.

NAREIT-defined FFO for the fourth quarter of 2018 was $11.7 million or $0.13 per diluted share, compared to $12.2 million or $0.13 per diluted share for the same period in 2017. NAREIT-defined FFO for the full year 2018 was $45.2 million or $0.49 per diluted share, compared to $40.0 million or $0.45 per diluted share for the same period in 2017. Operating FFO for the fourth quarter of 2018 was $11.7 million or $0.13 per diluted share, compared to $12.4 million or $0.14 per diluted share for the same period in 2017. Operating FFO for the full year 2018 was $53.6 million or $0.58 per diluted share, compared to $48.3 million or $0.55 per diluted share for the same period in 2017. The principal differences between Operating FFO and FFO are preferred stock redemption and early extinguishment of debt costs.

Portfolio Update

During the fourth quarter of 2018, the Company signed 44 leases for 331,300 square feet. On a comparable space basis, the Company leased 290,800 square feet at a positive lease spread of 6.1% on a cash basis (new leases increased 21.4% and renewals increased 1.0%). During the full year 2018, the Company signed 169 leases for 1,370,400 square feet. On a comparable space basis, the Company leased 1,304,800 square feet at a negative lease spread of (1.4)% on a cash basis (renewals decreased (1.7)% and new leases remained unchanged).

Excluding six strategic leases signed in early 2018, comparable lease spread for the full year 2018 would have been 4.9% (renewals increased 4.7% and new leases increased 5.4%). These six strategic leases consisted of (a) five anchor renewals in the first quarter of 2018 totaling 303,000 square feet at reduced or flat base rental rates that the Company proactively renewed with extended rental terms, and (b) a new lease in the second quarter of 2018 for 29,000 square feet of unconventional retail space in the rear of a shopping center at a significantly reduced rental rate. These anchor tenants have good credit and generate high foot traffic at their respective properties.

 

Same-property net operating income (NOI) decreased (0.3)% for the full year 2018 and decreased (3.0)% for the fourth quarter of 2018. Both the full year and quarter results were impacted by two Bon-Tons vacating and the Company proactively renewing and extending five anchors at reduced or flat base rental rates. Additionally, the quarter was impacted by Weiss vacating at the beginning of the quarter at Oakland Mills and the new grocer not commencing cash rent until late in the first quarter of 2019, along with Fallas vacating.

 

The Company's total portfolio, excluding properties held for sale, was 91.0% leased at December 31, 2018, compared to 91.6% at September 30, 2018 and 92.9% at December 31, 2017. The Company's same-property portfolio was 91.8% leased at December 31, 2018, compared to 92.3% at September 30, 2018 and 93.3% at December 31, 2017. The decreases in lease percentages are primarily the result of two Bon-Ton spaces (117,000 square feet) vacating in the second quarter of 2018 and two Fallas spaces (68,000 square feet) vacating in the fourth quarter of 2018.


 

 

4

 


 

Balance Sheet

Debt

As of December 31, 2018, the Company had $132.2 million available under its revolving credit facility and reported net debt to earnings before interest, taxes, depreciations, and amortization for real estate (EBITDAre) of 7.8 times. 

Equity

On December 18, 2018, the Company’s Board of Directors approved a stock repurchase program, which authorizes the Company to purchase up to $30.0 million of the Company’s common stock in the open market or through private transactions, subject to market conditions, from time to time, over the next 12 months. The Company has repurchased 2,774,000 shares of common stock for $9.0 million or $3.25 per share (2,002,000 common shares for $6.7 million or $3.33 per share subsequent to year-end).

 

2019 Guidance

The Company’s initial 2019 guidance is as follows:

 

 

Guidance

Net income attributable to common shareholders per diluted share

 

$0.02 - $0.04

NAREIT-defined FFO per diluted  share

 

$0.43 - $0.45

Operating FFO per diluted share

 

$0.44 - $0.46

 

The guidance is based, in part, on the following:

Lease costs required to be expensed beginning in 2019 of $2.5 to $3.0 million under new accounting standard

Same-property NOI growth including redevelopment properties of 1% and excluding redevelopments relatively flat

Development marketing and community outreach costs at urban properties of $750,000 reflected in redevelopment NOI

Increase in general and administrative costs of $1.5 million from additional personnel related to urban properties and legal expense  in connection with the termination of former Chief Operating Officer

Decrease in amortization income from intangible lease liabilities of $2.0 million (inclusive of $1.5 million related to terminating a dark anchor in 2018)

Dispositions of approximately $40 million

The principal difference between NAREIT-defined FFO and Operating FFO in the above for 2019 is demolition costs related to redevelopments.

Non-GAAP Financial Measures

NAREIT-defined FFO is a widely recognized supplemental non-GAAP measure utilized to evaluate the financial performance of a REIT. The Company considers NAREIT-defined FFO to be an appropriate measure of its financial performance because 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 other depreciable assets. The Company also considers Operating FFO to be an additional meaningful financial measure of financial performance because it excludes items the Company does not believe are indicative of its core operating performance, such as acquisition pursuit costs, amounts relating to early extinguishment of debt and preferred stock redemption costs, management transition costs and certain redevelopment costs. The Company believes Operating FFO further assists in comparing the Company's performance across reporting periods on a consistent basis by excluding such items. NAREIT-defined FFO and Operating FFO should be reviewed with GAAP net income attributable to common shareholders, the most directly comparable GAAP financial measure, when trying to understand the Company's operating performance. A reconciliation of net income (loss) attributable to common shareholders to NAREIT-defined FFO and Operating FFO for the three months ended and full year ended December 31, 2018 and 2017 is detailed in the attached schedule.

EBITDAre is a recognized supplemental non-GAAP financial measure. The Company presents EBITDAre in accordance with the definition adopted by NAREIT, which generally defines EBITDAre as net income plus interest expense, income tax expense, depreciation, amortization, and impairment write-downs of depreciated property, plus or minus losses and gains on the disposition of depreciated property, and adjustments to reflect the Company's share of EBITDAre of unconsolidated affiliates. The Company believes EBITDAre provides additional information with respect to the Company's performance and ability to meet its future debt service requirements. The Company also considers Adjusted EBITDAre to be an additional meaningful financial measure of financial performance because it excludes items the Company does not believe are indicative of its core operating performance, such as acquisition pursuit and redevelopment costs. The Company believes Adjusted EBITDAre further assists in comparing the Company's performance across reporting periods on a consistent basis by excluding such items. EBITDAre and Adjusted EBITDAre should be reviewed with GAAP net income, the most directly comparable GAAP financial measure, when trying to understand the Company's operating performance. EBITDAre and Adjusted EBITDAre do not represent cash generated from operating activities and should not be considered as an alternative to income from continuing operations or to cash flow from operating activities. The Company's computation of Adjusted EBITDAre may differ from the computations utilized by other companies and, accordingly, may not be comparable to such companies.

 

 

5

 


 

Same-property NOI is a widely recognized supplemental non-GAAP financial measure for REITs.  Properties are included in same-property NOI if they are owned and operated for the entirety of both periods being compared, except for properties undergoing significant redevelopment and expansion until such properties have stabilized, and properties classified as held for sale. Consistent with the capital treatment of such costs under GAAP, tenant improvements, leasing commissions and other direct leasing costs are excluded from same-property NOI. The Company considers same-property NOI useful to investors as it provides an indication of the recurring cash generated by the Company's properties by excluding certain non-cash revenues and expenses, as well as other infrequent items such as lease termination income which tends to fluctuate more than rents from year to year. Same property NOI should be reviewed with consolidated operating income, the most directly comparable GAAP financial measure.

Supplemental Financial Information Package

The Company has issued "Supplemental Financial Information" for the period ended December 31, 2018. 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, February 7, 2019, at 5:00 PM (ET) to discuss the quarterly and yearly 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 February 7, 2019, until midnight (ET) on February 21, 2019. The replay dial-in numbers are (844) 512-2921 or (1) (412) 317-6671 for international callers. Please use passcode 13686371 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, operation and redevelopment of grocery-anchored shopping centers in high-density urban markets from Washington, D.C. to Boston. The Company's portfolio (excluding properties treated as "held for sale") comprises 58 properties, with approximately 8.7 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. Factors which could cause actual results to differ materially from current expectations include, among others:  adverse general economic conditions in the United States and uncertainty in the credit and retail markets; financing risks, such as the inability to obtain new financing or refinancing on favorable terms as the result of market volatility or instability; risks related to the market for retail space generally, including reductions in consumer spending, variability in retailer demand for leased space, tenant bankruptcies, adverse impact of internet sales demand, ongoing consolidation in the retail sector and changes in economic conditions and consumer confidence; risks endemic to real estate and the real estate industry generally; the impact of the Company's level of indebtedness on operating performance; inability of tenants to meet their rent and other lease obligations; adverse impact of new technology and e-commerce developments on the Company's tenants; competitive risk; risks related to the geographic concentration of the Company's properties in the Washington D.C. to Boston corridor; the effects of natural and other disasters; and the inability of the Company to realize anticipated returns from its redevelopment activities. 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, 2017, as it may be updated or supplemented in the Company's Quarterly Reports on Form 10-Q and the Company's other filings with the SEC, which identify additional risk factors that could cause actual results to differ from those contained in forward-looking statements.

Contact Information:

Cedar Realty Trust, Inc.

Philip R. Mays

Executive Vice President, Chief Financial Officer and Treasurer

(516) 944-4572

 

 

6

 


 

CEDAR REALTY TRUST, INC.

Condensed Consolidated Balance Sheets

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

ASSETS

 

 

 

 

 

 

 

 

Real estate, at cost

 

$

1,508,682,000

 

 

$

1,534,599,000

 

Less accumulated depreciation

 

 

(361,969,000

)

 

 

(341,943,000

)

Real estate, net

 

 

1,146,713,000

 

 

 

1,192,656,000

 

Real estate held for sale

 

 

11,592,000

 

 

 

-

 

Cash and cash equivalents

 

 

1,977,000

 

 

 

3,702,000

 

Restricted cash

 

 

-

 

 

 

3,517,000

 

Receivables

 

 

21,977,000

 

 

 

17,193,000

 

Other assets and deferred charges, net

 

 

40,642,000

 

 

 

35,350,000

 

TOTAL ASSETS

 

$

1,222,901,000

 

 

$

1,252,418,000

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage loans payable

 

$

47,315,000

 

 

$

127,969,000

 

Capital lease obligation

 

 

5,387,000

 

 

 

-

 

Unsecured revolving credit facility

 

 

100,000,000

 

 

 

55,000,000

 

Unsecured term loans

 

 

472,132,000

 

 

 

397,156,000

 

Accounts payable and accrued liabilities

 

 

26,142,000

 

 

 

24,519,000

 

Unamortized intangible lease liabilities

 

 

13,209,000

 

 

 

17,663,000

 

Total liabilities

 

 

664,185,000

 

 

 

622,307,000

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Preferred stock

 

 

159,541,000

 

 

 

207,508,000

 

Common stock and other shareholders' equity

 

 

395,884,000

 

 

 

420,828,000

 

Noncontrolling interests

 

 

3,291,000

 

 

 

1,775,000

 

Total equity

 

 

558,716,000

 

 

 

630,111,000

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

1,222,901,000

 

 

$

1,252,418,000

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 


 

CEDAR REALTY TRUST, INC.

Condensed Consolidated Statements of Operations

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

PROPERTY REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rents

 

$

28,126,000

 

 

$

28,486,000

 

 

$

113,858,000

 

 

$

113,276,000

 

Expense recoveries

 

 

8,578,000

 

 

 

8,424,000

 

 

 

33,378,000

 

 

 

31,220,000

 

Other

 

 

228,000

 

 

 

227,000

 

 

 

4,784,000

 

 

 

1,512,000

 

Total property revenues

 

 

36,932,000

 

 

 

37,137,000

 

 

 

152,020,000

 

 

 

146,008,000

 

PROPERTY OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating, maintenance and management

 

 

7,589,000

 

 

 

6,668,000

 

 

 

27,771,000

 

 

 

24,752,000

 

Real estate and other property-related taxes

 

 

4,951,000

 

 

 

4,980,000

 

 

 

20,123,000

 

 

 

19,577,000

 

Total property operating expenses

 

 

12,540,000

 

 

 

11,648,000

 

 

 

47,894,000

 

 

 

44,329,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY OPERATING INCOME

 

 

24,392,000

 

 

 

25,489,000

 

 

 

104,126,000

 

 

 

101,679,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER EXPENSES AND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

4,170,000

 

 

 

4,413,000

 

 

 

16,915,000

 

 

 

16,907,000

 

Acquisition pursuit costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

156,000

 

Depreciation and amortization

 

 

9,808,000

 

 

 

9,937,000

 

 

 

40,053,000

 

 

 

40,115,000

 

Gain on sale

 

 

-

 

 

 

-

 

 

 

(4,864,000

)

 

 

(7,099,000

)

Impairment (reversals)/charges

 

 

-

 

 

 

(312,000

)

 

 

20,689,000

 

 

 

9,538,000

 

Total other expenses and income

 

 

13,978,000

 

 

 

14,038,000

 

 

 

72,793,000

 

 

 

59,617,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

10,414,000

 

 

 

11,451,000

 

 

 

31,333,000

 

 

 

42,062,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING INCOME AND EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(5,678,000

)

 

 

(5,561,000

)

 

 

(22,146,000

)

 

 

(22,199,000

)

Early extinguishment of debt costs

 

 

-

 

 

 

(210,000

)

 

 

(4,829,000

)

 

 

(210,000

)

Total non-operating income and expense

 

 

(5,678,000

)

 

 

(5,771,000

)

 

 

(26,975,000

)

 

 

(22,409,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

4,736,000

 

 

 

5,680,000

 

 

 

4,358,000

 

 

 

19,653,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to noncontrolling interests

 

 

(116,000

)

 

 

(139,000

)

 

 

(469,000

)

 

 

(510,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.

 

 

4,620,000

 

 

 

5,541,000

 

 

 

3,889,000

 

 

 

19,143,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends

 

 

(2,688,000

)

 

 

(2,913,000

)

 

 

(10,863,000

)

 

 

(13,652,000

)

Preferred stock redemption costs

 

 

-

 

 

 

-

 

 

 

(3,507,000

)

 

 

(7,890,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

 

$

1,932,000

 

 

$

2,628,000

 

 

$

(10,481,000

)

 

$

(2,399,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND DILUTED)

 

$

0.02

 

 

$

0.03

 

 

$

(0.13

)

 

$

(0.04

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - basic and diluted

 

 

88,998,000

 

 

 

87,526,000

 

 

 

88,420,000

 

 

 

84,168,000

 

 

 

 

8

 


 

CEDAR REALTY TRUST, INC.

Supporting Schedules to Consolidated Statements

 

 

Balance Sheets

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction in process (included in real estate, at cost)

 

$

15,151,000

 

 

$

12,396,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rents and other tenant receivables, net

 

$

4,443,000

 

 

$

3,118,000

 

 

 

 

 

 

 

 

 

Mortgage note receivable

 

 

3,500,000

 

 

 

-

 

 

 

 

 

 

 

 

 

Straight-line rents

 

 

14,034,000

 

 

 

14,075,000

 

 

 

 

 

 

 

 

 

 

 

$

21,977,000

 

 

$

17,193,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets and deferred charges, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease origination costs

 

$

21,623,000

 

 

$

19,343,000

 

 

 

 

 

 

 

 

 

Interest rate swap assets

 

 

8,871,000

 

 

 

6,394,000

 

 

 

 

 

 

 

 

 

Prepaid expenses

 

 

5,790,000

 

 

 

5,377,000

 

 

 

 

 

 

 

 

 

Revolving credit facility issuance costs

 

 

1,627,000

 

 

 

2,207,000

 

 

 

 

 

 

 

 

 

Other

 

 

2,731,000

 

 

 

2,029,000

 

 

 

 

 

 

 

 

 

 

 

$

40,642,000

 

 

$

35,350,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statements of Operations

 

Three months ended December 31,

 

 

Years ended December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Rents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Base rents

 

$

26,729,000

 

 

$

27,600,000

 

 

$

107,630,000

 

 

$

108,998,000

 

Percentage rent

 

 

328,000

 

 

 

191,000

 

 

 

725,000

 

 

 

896,000

 

Straight-line rents

 

 

318,000

 

 

 

77,000

 

 

 

1,142,000

 

 

 

864,000

 

Amortization of intangible lease liabilities, net

 

 

751,000

 

 

 

618,000

 

 

 

4,361,000

 

 

 

2,518,000

 

 

 

$

28,126,000

 

 

$

28,486,000

 

 

$

113,858,000

 

 

$

113,276,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 


 

CEDAR REALTY TRUST, INC.

Funds From Operations and Additional Disclosures

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net income (loss) attributable to common shareholders

 

$

1,932,000

 

 

$

2,628,000

 

 

$

(10,481,000

)

 

$

(2,399,000

)

Real estate depreciation and amortization

 

 

9,763,000

 

 

 

9,886,000

 

 

 

39,858,000

 

 

 

39,922,000

 

Limited partners' interest

 

 

13,000

 

 

 

9,000

 

 

 

(28,000

)

 

 

(13,000

)

Gain on sales

 

 

-

 

 

 

-

 

 

 

(4,864,000

)

 

 

(7,099,000

)

Impairment (reversals)/charges

 

 

-

 

 

 

(312,000

)

 

 

20,689,000

 

 

 

9,538,000

 

Consolidated minority interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of income

 

 

103,000

 

 

 

130,000

 

 

 

497,000

 

 

 

523,000

 

Share of FFO

 

 

(87,000

)

 

 

(118,000

)

 

 

(430,000

)

 

 

(440,000

)

Funds From Operations ("FFO") applicable to diluted common shares

 

 

11,724,000

 

 

 

12,223,000

 

 

 

45,241,000

 

 

 

40,032,000

 

Adjustments for items affecting comparability:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock redemption costs

 

 

-

 

 

 

-

 

 

 

3,507,000

 

 

 

7,890,000

 

Financing costs (a)

 

 

-

 

 

 

210,000

 

 

 

4,829,000

 

 

 

210,000

 

Acquisition pursuit costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

156,000

 

Redevelopment costs (b)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

37,000

 

Operating Funds From Operations ("Operating FFO") applicable  to diluted common shares

 

$

11,724,000

 

 

$

12,433,000

 

 

$

53,577,000

 

 

$

48,325,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per diluted common share:

 

$

0.13

 

 

$

0.13

 

 

$

0.49

 

 

$

0.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating FFO per diluted common share:

 

$

0.13

 

 

$

0.14

 

 

$

0.58

 

 

$

0.55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of diluted common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares and equivalents

 

 

92,907,000

 

 

 

91,317,000

 

 

 

92,361,000

 

 

 

87,948,000

 

OP Units

 

 

553,000

 

 

 

348,000

 

 

 

429,000

 

 

 

350,000

 

 

 

 

93,460,000

 

 

 

91,665,000

 

 

 

92,790,000

 

 

 

88,298,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional Disclosures (c):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line rents

 

$

318,000

 

 

$

77,000

 

 

$

1,142,000

 

 

$

864,000

 

Amortization of intangible lease liabilities

 

 

751,000

 

 

 

618,000

 

 

 

4,361,000

 

 

 

2,518,000

 

Non-real estate amortization

 

 

356,000

 

 

 

546,000

 

 

 

1,547,000

 

 

 

1,730,000

 

Share-based compensation, net

 

 

962,000

 

 

 

859,000

 

 

 

3,763,000

 

 

 

3,552,000

 

Maintenance capital expenditures (d)

 

 

2,299,000

 

 

 

2,173,000

 

 

 

6,396,000

 

 

 

5,385,000

 

Lease related expenditures (e)

 

 

1,044,000

 

 

 

1,182,000

 

 

 

8,211,000

 

 

 

5,628,000

 

Development and redevelopment capital expenditures

 

 

4,847,000

 

 

 

3,221,000

 

 

 

20,104,000

 

 

 

22,484,000

 

Capitalized interest and financing costs

 

 

403,000

 

 

 

200,000

 

 

 

1,528,000

 

 

 

683,000

 

 

(a)

Represents early extinguishment of debt costs.

(b)

Includes redevelopment project costs expensed pursuant to GAAP such as certain demolition and lease termination costs.

(c)

These additional disclosures are presented to assist with understanding the Company’s real estate operations and capital requirements.  These amounts should not be considered independently or as a substitute for the Company’s consolidated financial statements reported under GAAP.

(d)

Consists of payments for building and site improvements.

(e)

Consists of payments for tenant improvements and leasing commissions.

 

 

 

 

10

 


 

CEDAR REALTY TRUST, INC.

EBITDA for Real Estate (“EBITDAre”) and Additional Disclosures

 

 

 

 

Three months ended December 31,

 

 

Years ended December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net income

 

$

4,736,000

 

 

$

5,680,000

 

 

$

4,358,000

 

 

$

19,653,000

 

Interest expense

 

 

5,678,000

 

 

 

5,561,000

 

 

 

22,146,000

 

 

 

22,199,000

 

Depreciation and amortization

 

 

9,808,000

 

 

 

9,937,000

 

 

 

40,053,000

 

 

 

40,115,000

 

Gain on sales

 

 

-

 

 

 

-

 

 

 

(4,864,000

)

 

 

(7,099,000

)

Impairment (reversals)/charges

 

 

-

 

 

 

(312,000

)

 

 

20,689,000

 

 

 

9,538,000

 

EBITDAre

 

 

20,222,000

 

 

 

20,866,000

 

 

 

82,382,000

 

 

 

84,406,000

 

Adjustments for items affecting comparability:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition pursuit costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

156,000

 

Financing costs (a)

 

 

-

 

 

 

210,000

 

 

 

4,829,000

 

 

 

210,000

 

Redevelopment costs (b)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

37,000

 

Adjusted EBITDAre

 

$

20,222,000

 

 

$

21,076,000

 

 

$

87,211,000

 

 

$

84,809,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net debt (c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt, excluding issuance costs

 

$

622,674,000

 

 

$

580,125,000

 

 

$

622,674,000

 

 

$

580,125,000

 

Capital lease obligation

 

 

5,696,000

 

 

 

-

 

 

 

5,696,000

 

 

 

-

 

Unrestricted cash and cash equivalents

 

 

(1,977,000

)

 

 

(3,702,000

)

 

 

(1,977,000

)

 

 

(3,702,000

)

 

 

$

626,393,000

 

 

$

576,423,000

 

 

$

626,393,000

 

 

$

576,423,000