CEDAR REALTY TRUST 
By 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
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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)
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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
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Total net loss attributable to noncontrolling interests 77,000 9,000
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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
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Weighted average number of diluted common shares:
Common shares 78,289,000 71,944,000
OP Units 480,000 281,000
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78,769,000 72,225,000
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SOURCE Cedar Realty Trust, Inc.
