Toggle SGML Header (+)


Section 1: 8-K (8-K)

cdr-8k_20190502.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): May 2, 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)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Name of each exchange on which registered

Trading Symbol(s)

Common Stock, $0.06 par value

New York Stock Exchange

CDR

7-1/4% Series B Cumulative Redeemable Preferred Stock, $25.00 Liquidation Value

New York Stock Exchange

CDRpB

6-1/2% Series C Cumulative Redeemable Preferred Stock, $25.00 Liquidation Value

New York Stock Exchange

CDRpC

 

 

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 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)  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 May 2, 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 March 31, 2019. 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 March 31, 2019 (including press release dated May 2, 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: May 2, 2019

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

cdr-ex991_6.htm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

CEDAR REALTY TRUST, INC.

Supplemental Financial Information

March 31, 2019

(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 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 FIRST

QUARTER 2019 RESULTS

 

Port Washington, New York – May 2, 2019 – Cedar Realty Trust, Inc. (NYSE:CDR – the “Company”) today reported results for the first quarter ended March 31, 2019. Net income attributable to common shareholders was $0.00 per diluted share compared to net loss of ($0.26) per diluted share for the comparable 2018 period.  Other highlights include:

 

Highlights

 

Funds from operations (FFO) of $0.11 per diluted share

Same-property net operating income (NOI) decreased 1.2% compared to the same period in 2018

Signed 42 new and renewal leases for 413,200 square feet in the quarter

Total portfolio 90.5% leased and same-property portfolio 91.1% leased at quarter-end

Repurchased 2,050,000 common shares for $6.8 million at an average price of $3.34 per share

Sold Maxatawny Marketplace, located in Maxatawny, Pennsylvania

 

“We are pleased with our volume of complete leasing this quarter and even more so about the level of interest and LOI’s received on our urban mixed-use redevelopments,” commented Bruce Schanzer, President and Chief Executive Officer.

 

Financial Results

 

Net income attributable to common shareholders for the first quarter of 2019 was $0.2 million or $0.00 per diluted share, compared to net loss of ($23.0) million or ($0.26) per diluted share for the same period in 2018. The principal differences in the comparative three-month results are impairment charges related to properties held for sale along with preferred stock redemption costs in 2018.

 

NAREIT-defined FFO for the first quarter of 2019 was $10.2 million or $0.11 per diluted share, compared to $8.4 million or $0.09 per diluted share for the same period in 2018. Operating FFO for the first quarter of 2019 was $10.2 million or $0.11 per diluted share, compared to $11.9 million or $0.13 per diluted share for the same period in 2018. The principal difference between Operating FFO and NAREIT-defined FFO is preferred stock redemption costs in 2018.

 

Portfolio Update

 

During the first quarter of 2019, the Company signed 42 leases for 413,200 square feet. On a comparable space basis, the Company leased 405,900 square feet at a positive lease spread of 2.3% on a cash basis (new leases increased 5.4% and renewals increased 1.6%).

 

Same-property NOI for the first quarter of 2019 decreased 1.2% as compared to the same period in 2018. The quarter results were impacted by two Fallas stores vacating in the fourth quarter of 2018 along with a Weiss Markets vacating in the fourth quarter at Oakland Mills and the replacement grocer not commencing cash rent until the end of the first quarter of 2019.

 

The Company’s total portfolio, excluding properties held for sale, was 90.5% leased at March 31, 2019, compared to 91.0% at December 31, 2018 and 92.6% at March 31, 2018. The Company’s same-property portfolio was 91.1% leased at March 31, 2019, compared to 91.2% at December 31, 2018 and 92.9% at March 31, 2018.

 

As of March 31, 2019, Carll’s Corner, located in Bridgeton, New Jersey, Fort Washington Center, located in Fort Washington, Pennsylvania, and Suffolk Plaza, located in Suffolk, Virginia, have been classified as “real estate held for sale”.

 

Balance Sheet

 

Debt

 

As of March 31, 2019, the Company had $105.2 million available under its revolving credit facility and reported net debt to earnings before interest, taxes, depreciations, and amortization for real estate (EBITDAre) of 8.4 times. Further, the Company has no debt maturities until early 2021.

 

 


 

 

4

 


 

Equity

 

On December 18, 2018, the Company’s Board of Directors approved a stock repurchase program, which authorized the purchase of 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, through December 18, 2019. During the three months ended March 31, 2019, the Company repurchased 2,050,000 shares at a weighted average price per share of $3.34. Since approval of the plan on December 18, 2018, the Company has repurchased a total of 2,823,000 shares at a weighted average price per share of $3.25.

 

2019 Guidance

 

The Company reaffirms its previously-announced 2019 guidance, 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 addition 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 $2.0 million (inclusive of $1.5 million related to terminating a dark anchor in 2018)

Dispositions of approximately $40 million

The principal differences between NAREIT-defined FFO and Operating FFO in the above for 2019 is 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 March 31, 2019 and 2018 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 March 31, 2019. 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 2, 2019, at 5:00 PM (ET) to discuss the quarterly 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 2, 2019, until midnight (ET) on May 16, 2019. The replay dial-in numbers are (844) 512-2921 or (1) (412) 317-6671 for international callers. Please use passcode 13689398 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 56 properties, with approximately 8.6 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, 2018, 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

 

 

 

March 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

Real estate, at cost

 

$

1,501,608,000

 

 

$

1,508,682,000

 

Less accumulated depreciation

 

 

(366,470,000

)

 

 

(361,969,000

)

Real estate, net

 

 

1,135,138,000

 

 

 

1,146,713,000

 

Real estate held for sale

 

 

13,151,000

 

 

 

11,592,000

 

Cash and cash equivalents

 

 

25,000

 

 

 

1,977,000

 

Receivables

 

 

23,322,000

 

 

 

21,977,000

 

Other assets and deferred charges, net

 

 

50,743,000

 

 

 

40,642,000

 

TOTAL ASSETS

 

$

1,222,379,000

 

 

$

1,222,901,000

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage loan payable

 

$

47,083,000

 

 

$

47,315,000

 

Capital lease obligation

 

 

5,381,000

 

 

 

5,387,000

 

Unsecured revolving credit facility

 

 

102,000,000

 

 

 

100,000,000

 

Unsecured term loans

 

 

472,309,000

 

 

 

472,132,000

 

Accounts payable and accrued liabilities

 

 

40,551,000

 

 

 

26,142,000

 

Unamortized intangible lease liabilities

 

 

12,564,000

 

 

 

13,209,000

 

Total liabilities

 

 

679,888,000

 

 

 

664,185,000

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Preferred stock

 

 

159,541,000

 

 

 

159,541,000

 

Common stock and other shareholders' equity

 

 

379,601,000

 

 

 

395,884,000

 

Noncontrolling interests

 

 

3,349,000

 

 

 

3,291,000

 

Total equity

 

 

542,491,000

 

 

 

558,716,000

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

1,222,379,000

 

 

$

1,222,901,000

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 


 

CEDAR REALTY TRUST, INC.

Condensed Consolidated Statements of Operations

 

 

 

 

Three months ended March 31,

 

 

 

2019

 

 

2018

 

PROPERTY REVENUES

 

 

 

 

 

 

 

 

Rental revenues

 

$

36,592,000

 

 

$

37,447,000

 

Other

 

 

291,000

 

 

 

121,000

 

Total property revenues

 

 

36,883,000

 

 

 

37,568,000

 

PROPERTY OPERATING EXPENSES

 

 

 

 

 

 

 

 

Operating, maintenance and management

 

 

7,967,000

 

 

 

7,794,000

 

Real estate and other property-related taxes

 

 

5,210,000

 

 

 

5,079,000

 

Total property operating expenses

 

 

13,177,000

 

 

 

12,873,000

 

 

 

 

 

 

 

 

 

 

PROPERTY OPERATING INCOME

 

 

23,706,000

 

 

 

24,695,000

 

 

 

 

 

 

 

 

 

 

OTHER EXPENSES AND INCOME

 

 

 

 

 

 

 

 

General and administrative

 

 

4,798,000

 

 

 

4,494,000

 

Depreciation and amortization

 

 

10,129,000

 

 

 

10,054,000

 

Gain on sale

 

 

(101,000

)

 

 

-

 

Impairment charges

 

 

-

 

 

 

21,396,000

 

Total other expenses and income

 

 

14,826,000

 

 

 

35,944,000

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

8,880,000

 

 

 

(11,249,000

)

 

 

 

 

 

 

 

 

 

NON-OPERATING INCOME AND EXPENSES

 

 

 

 

 

 

 

 

Interest expense

 

 

(5,891,000

)

 

 

(5,371,000

)

Total non-operating income and expense

 

 

(5,891,000

)

 

 

(5,371,000

)

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

 

2,989,000

 

 

 

(16,620,000

)

 

 

 

 

 

 

 

 

 

Attributable to noncontrolling interests

 

 

(107,000

)

 

 

(48,000

)

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.

 

 

2,882,000

 

 

 

(16,668,000

)

 

 

 

 

 

 

 

 

 

Preferred stock dividends

 

 

(2,688,000

)

 

 

(2,799,000

)

Preferred stock redemption costs

 

 

-

 

 

 

(3,507,000

)

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

 

$

194,000

 

 

$

(22,974,000

)

 

 

 

 

 

 

 

 

 

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

 

$

0.00

 

 

$

(0.26

)

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - basic and diluted

 

 

86,580,000

 

 

 

87,623,000

 

 

 

 

8

 


 

CEDAR REALTY TRUST, INC.

Supporting Schedules to Consolidated Statements

 

 

Balance Sheets

 

March 31,

 

 

December 31,

 

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

16,345,000

 

 

$

15,151,000

 

 

 

 

 

 

 

 

 

 

 

 

Receivables

 

 

 

 

 

 

 

 

 

Rents and other tenant receivables, net

 

$

5,631,000

 

 

$

4,443,000

 

 

Mortgage note receivable

 

 

3,500,000

 

 

 

3,500,000

 

 

Straight-line rents

 

 

14,191,000

 

 

 

14,034,000

 

 

 

 

$

23,322,000

 

 

$

21,977,000

 

 

 

 

 

 

 

 

 

 

 

 

Other assets and deferred charges, net

 

 

 

 

 

 

 

 

 

Lease origination costs

 

$

21,151,000

 

 

$

21,623,000

 

 

Right-of-use assets (a)

 

 

14,358,000

 

 

 

-

 

 

Interest rate swap assets

 

 

4,688,000

 

 

 

8,871,000

 

 

Prepaid expenses

 

 

6,546,000

 

 

 

5,790,000

 

 

Revolving credit facility issuance costs

 

 

1,475,000

 

 

 

1,627,000

 

 

Other

 

 

2,525,000

 

 

 

2,731,000

 

 

 

 

$

50,743,000

 

 

$

40,642,000

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

23,281,000

 

 

$

24,566,000

 

 

Right-of-use liabilities (a)

 

 

14,417,000

 

 

 

-

 

 

Interest rate swap liabilities

 

 

2,853,000

 

 

 

1,576,000

 

 

 

 

$

40,551,000

 

 

$

26,142,000

 

 

 

 

 

 

 

 

 

 

 

 

Statements of Operations

 

Three months ended March 31,

 

 

 

 

2019

 

 

2018

 

 

Rental revenues

 

 

 

 

 

 

 

 

 

Base rents

 

$

26,401,000

 

 

$

27,159,000

 

 

Expense recoveries

 

 

9,194,000

 

 

 

9,286,000

 

 

Percentage rent

 

 

182,000

 

 

 

88,000

 

 

Straight-line rents

 

 

224,000

 

 

 

245,000

 

 

Amortization of intangible lease liabilities, net

 

 

591,000

 

 

 

669,000

 

 

 

 

$

36,592,000

 

 

$

37,447,000

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

In connection with the adoption of the new lease accounting standard in accordance with GAAP, effective January 1, 2019, the Company recorded right to use assets and liabilities based on its future obligations under its ground lease and executive office lease agreements for which the Company is the lessee.

 

 

9

 


 

CEDAR REALTY TRUST, INC.

Funds From Operations and Additional Disclosures

 

 

 

 

Three months ended March 31,

 

 

 

 

2019

 

 

2018

 

 

Net income (loss) attributable to common shareholders

 

$

194,000

 

 

$

(22,974,000

)

 

Real estate depreciation and amortization

 

 

10,083,000

 

 

 

10,004,000

 

 

Limited partners' interest

 

 

2,000

 

 

 

(87,000

)

 

Gain on sale

 

 

(101,000

)

 

 

-

 

 

Impairment charges

 

 

-

 

 

 

21,396,000

 

 

Consolidated minority interests:

 

 

 

 

 

 

 

 

 

Share of income

 

 

105,000

 

 

 

135,000

 

 

Share of FFO

 

 

(79,000

)

 

 

(124,000

)

 

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

 

 

10,204,000

 

 

 

8,350,000

 

 

Adjustments for items affecting comparability:

 

 

 

 

 

 

 

 

 

Preferred stock redemption costs

 

 

-

 

 

 

3,507,000

 

 

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

 

$

10,204,000

 

 

$

11,857,000

 

 

 

 

 

 

 

 

 

 

 

 

FFO per diluted common share:

 

$

0.11

 

 

$

0.09

 

 

 

 

 

 

 

 

 

 

 

 

Operating FFO per diluted common share:

 

$

0.11

 

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of diluted common shares:

 

 

 

 

 

 

 

 

 

Common shares and equivalents

 

 

90,862,000

 

 

 

91,647,000

 

 

OP Units

 

 

553,000

 

 

 

347,000

 

 

 

 

 

91,415,000

 

 

 

91,994,000

 

 

 

 

 

 

 

 

 

 

 

 

Additional Disclosures (a):

 

 

 

 

 

 

 

 

 

Straight-line rents

 

$

224,000

 

 

$

245,000

 

 

Amortization of intangible lease liabilities

 

 

591,000

 

 

 

669,000

 

 

Non-real estate amortization

 

 

377,000

 

 

 

343,000

 

 

Share-based compensation, net

 

 

1,015,000

 

 

 

974,000

 

 

Maintenance capital expenditures (b)

 

 

2,826,000

 

 

 

1,009,000

 

 

Lease related expenditures (c)

 

 

2,303,000

 

 

 

2,482,000

 

 

Development and redevelopment capital expenditures

 

 

4,071,000

 

 

 

5,912,000

 

 

Capitalized interest and financing costs

 

 

258,000

 

 

 

358,000

 

 

 

(a)

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.

(b)

Consists of payments for building and site improvements.

(c)

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 March 31,

 

 

 

 

2019

 

 

2018

 

 

Net income (loss)

 

$

2,989,000

 

 

$

(16,620,000

)

 

Interest expense

 

 

5,891,000

 

 

 

5,371,000

 

 

Depreciation and amortization

 

 

10,129,000

 

 

 

10,054,000

 

 

Gain on sale

 

 

(101,000

)

 

 

-

 

 

Impairment charges

 

 

-

 

 

 

21,396,000

 

 

EBITDAre

 

 

18,908,000

 

 

 

20,201,000

 

 

 

 

 

 

 

 

 

 

 

 

Net debt (a)

 

 

 

 

 

 

 

 

 

Debt, excluding issuance costs

 

$

624,429,000

 

 

$

634,016,000

 

 

Capital lease obligation

 

 

5,688,000

 

 

 

3,230,000

 

 

Unrestricted cash and cash equivalents

 

 

(25,000

)

 

 

(3,004,000

)

 

 

 

$

630,092,000

 

 

$

634,242,000

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges (a)

 

 

 

 

 

 

 

 

 

Interest expense

 

$

5,805,000

 

 

$

5,404,000

 

 

Preferred stock dividends

 

 

2,688,000

 

 

 

2,799,000

 

 

Scheduled mortgage repayments

 

 

253,000

 

 

 

752,000

 

 

 

 

$

8,746,000

 

 

$

8,955,000

 

 

 

 

 

 

 

 

 

 

 

 

Debt and Coverage Ratios (b)

 

 

 

 

 

 

 

 

 

Net debt to EBITDAre

 

 

8.4

x

 

 

7.9

x

 

Interest coverage ratio (based on EBITDAre)

 

 

3.2

x

 

 

3.7

x

 

Fixed charge coverage ratio (based on EBITDAre)

 

 

2.2

x

 

 

2.3

x

 

 

 

(a)

Includes properties "held for sale".

(b)

For the purposes of these computations, these ratios have been adjusted to include the annualized results of properties acquired, and to exclude, where applicable, (i) the results related to properties sold, and (ii) lease termination income.

 

 

 

11

 


 

CEDAR REALTY TRUST, INC.

Summary of Outstanding Debt and Maturities

As of March 31, 2019

 

 

 

Maturity

 

Interest

 

 

 

 

 

 

 

Dates

 

Rates

 

 

Amounts

 

Secured fixed-rate debt:

 

 

 

 

 

 

 

 

 

 

Franklin Village Plaza mortgage

 

Jun 2026

 

3.9%

 

 

 

47,429,000

 

Senator Square capital lease obligation (a)

 

Sep 2050

 

5.3%

 

 

 

5,688,000

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured debt (b):

 

 

 

 

 

 

 

 

 

 

Variable-rate (c):

 

 

 

 

 

 

 

 

 

 

Revolving credit facility (d)

 

Sep 2021

 

3.8%

 

 

 

102,000,000

 

Term loan

 

Sep 2022

 

4.0%

 

 

 

50,000,000

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate (e):

 

 

 

 

 

 

 

 

 

 

Term loan

 

Feb 2021

 

3.6%

 

 

 

75,000,000

 

Term loan

 

Feb 2022

 

3.0%

 

 

 

50,000,000

 

Term loan

 

Sep 2022

 

2.8%

 

 

 

50,000,000

 

Term loan

 

Apr 2023

 

3.2%

 

 

 

100,000,000

 

Term loan

 

Sep 2024

 

3.7%

 

 

 

75,000,000

 

Term loan

 

Jul 2025

 

4.6%

 

 

 

75,000,000

 

Total unsecured debt

 

weighted average

 

3.6%

 

 

 

577,000,000

 

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

weighted average

 

3.6%

 

 

 

630,117,000

 

 

 

 

 

 

 

 

 

 

 

 

Unamortized mortgage, capital lease and term loan issuance costs

 

 

 

(3,344,000

)

 

 

 

 

 

 

Total debt

 

 

$

626,773,000

 

 

 

 

 

 

 

Fixed to variable rate debt ratio:

 

 

 

 

 

 

 

 

 

 

Fixed-rate debt

 

 

 

75.9%

 

 

$

478,117,000

 

Variable-rate debt

 

 

 

24.1%

 

 

 

152,000,000

 

 

 

 

 

100.0%

 

 

$

630,117,000

 

 

 

 

 

Mortgage Loan

 

 

Capital Lease

 

 

Revolving

 

 

Term

 

 

 

 

 

Year

 

Payable

 

 

Obligation

 

 

Credit Facility

 

 

Loans

 

 

Amounts

 

2019

 

$

750,000

 

 

$

24,000

 

 

$

-

 

 

$

-

 

 

$

774,000

 

2020

 

 

1,034,000

 

 

 

33,000

 

 

 

-

 

 

 

-

 

 

 

1,067,000

 

2021

 

 

1,074,000

 

 

 

35,000

 

 

 

102,000,000

 

(c)

 

75,000,000

 

 

 

178,109,000

 

2022

 

 

1,116,000

 

 

 

37,000

 

 

 

-

 

 

 

150,000,000

 

 

 

151,153,000

 

2023

 

 

1,160,000

 

 

 

39,000

 

 

 

-

 

 

 

100,000,000

 

 

 

101,199,000

 

2024

 

 

1,206,000

 

 

 

41,000

 

 

 

-

 

 

 

75,000,000

 

 

 

76,247,000

 

2025

 

 

1,253,000

 

 

 

44,000

 

 

 

-

 

 

 

75,000,000

 

 

 

76,297,000

 

2026

 

 

39,836,000

 

 

 

48,000

 

 

 

-

 

 

 

-

 

 

 

39,884,000

 

Thereafter

 

 

-

 

 

 

5,387,000

 

 

 

-

 

 

 

-

 

 

 

5,387,000

 

 

 

$

47,429,000

 

 

$

5,688,000

 

 

$

102,000,000

 

 

$

475,000,000

 

 

$

630,117,000

 

 

 

(a)

Maturity date reflects the first date the Company has the right to acquire the underlying land on the capital lease obligation.

(b)

Effective April 1, 2019, the weighted average interest rate for the Company’s unsecured credit facilities will increase 14 bps (ranging from an increase of 10 bps to 15 bps for each individual borrowing) as a result of a slight increase in the Company’s leverage ratio.

(c)

For variable-rate debt, rate in effect as of March 31, 2019.

(d)

Subject to a one-year extension at the Company's option.

(e)

The interest rates on these term loans consist of LIBOR plus a credit spread based on the Company's leverage ratio, for which the Company has interest rate swaps which convert the LIBOR rates to fixed rates. Accordingly, these term loans are presented as fixed-rate debt.

 

 

12

 


 

CEDAR REALTY TRUST, INC.

Real Estate Summary

As of March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

Year

 

 

 

 

 

 

Percent

 

 

base rent per

 

 

Major Tenants (a)

 

Property Description

 

acquired

 

 

GLA

 

 

occupied

 

 

leased sq. ft.

 

 

Name

 

GLA

 

Connecticut

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bethel Shopping Center

 

 

2013

 

 

 

101,105

 

 

 

95.1

%

 

$

23.31

 

 

Big Y

 

 

63,817

 

Brickyard Plaza

 

 

2004

 

 

 

227,598

 

 

 

97.0

%

 

 

8.50

 

 

Home Depot

 

 

103,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kohl's

 

 

58,966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Michaels

 

 

21,429

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Petsmart

 

 

20,405

 

Groton Shopping Center

 

 

2007

 

 

 

130,264

 

 

 

100.0

%

 

 

12.31

 

 

TJ Maxx

 

 

30,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

21,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aldi

 

&nb