Cedar Realty Trust, Inc. Reports Second Quarter 2013 Results
PORT WASHINGTON, N.Y., Aug. 6, 2013 /PRNewswire/ -- Cedar Realty Trust, Inc. (NYSE: CDR) today reported its financial results for the quarter ended June 30, 2013.
Second Quarter 2013 Highlights
- Operating FFO of $0.12 per diluted share.
- Same-property NOI increased 2.4% for the quarter including redevelopment and expansion properties, and 1.4% excluding redevelopment and expansion properties. These figures exclude the timing impact of replacing a dark anchor.
- Signed new and renewal leases for a total of 350,000 square feet.
- Positive leasing spreads of 10.3% on a cash basis (new leases increased 17.8% and renewals increased 9.7%).
- Total portfolio 92.7% leased and same-property portfolio 93.9% leased.
- Closed on a new unsecured $310 million credit facility on August 1, 2013.
Bruce Schanzer, President and CEO of Cedar, stated, "Our results represent consistent operating performance, highlighted by positive leasing spreads and momentum. We continue to focus on our core competencies of leasing and operations, while committing additional resources toward repositioning our portfolio through acquisitions, non-core dispositions and redevelopment activities. Together, these efforts should result in the creation of additional growth and long-term shareholder value."
Financial Results
Operating FFO for second quarter 2013 was $9.0 million or $0.12 per diluted share, compared to $11.2 million or $0.16 per diluted share for the same period in 2012. Operating FFO for six months ended June 30, 2013 was $17.7 million or $0.24 per diluted share, compared to $19.2 million or $0.27 per diluted share for the same period in 2012. Operating FFO for second quarter and six months ended June 30, 2012 included $3.4 million, or $0.05 per diluted share, of termination related income in connection with replacing a dark anchor at the Company's Oakland Commons shopping center in Bristol, Connecticut.
Net income attributable to common shareholders for second quarter 2013 was $1.0 million or $0.01 per diluted share, compared to $1.2 million or $0.01 per diluted share for the same period in 2012. Net income attributable to common shareholders for six months ended June 30, 2013 was $65,000 or $0.00 per diluted share, compared to a net loss of $(8.1) million or $(0.13) per diluted share for the same period in 2012.
Portfolio Results
For second quarter 2013, same-property NOI increased 2.4% including redevelopment and expansion properties, and 1.4% excluding redevelopment and expansion properties, compared to the same period in 2012. These figures exclude the timing impact associated with replacing the dark anchor at Oakland Commons with a Walmart Neighborhood Market.
The Company signed 37 leases for approximately 350,000 square feet in second quarter of 2013. On a comparable space basis, the Company leased 344,000 square feet at a positive lease spread of 10.3% on a cash basis (new leases increased 17.8% and renewals increased 9.7%).
The Company's total portfolio, excluding properties held for sale, was 92.7% leased and 92.0% occupied at June 30, 2013. The Company's same-property portfolio was 93.9% leased and 93.4% occupied at June 30, 2013. Other than a 50 basis points increase in total portfolio occupancy, these percentages are generally consistent with the prior quarter.
Balance Sheet Activity
The Company previously announced its plan to divest certain non-core assets in order to improve its geographic and asset type focus and reduce its debt to EBITDA ratio from in excess of 9.0 times to less than 8.0 times. As of June 30, 2013, the Company reported net debt to EBITDA ratio of 8.0 times and had realized $107 million of its targeted $150 million of net proceeds from dispositions.
New Credit Facility
On August 1, 2013, the Company closed on a new $310 million unsecured credit facility. The new facility is comprised of a three-year $260 million revolving credit facility, expiring in August 2016 (subject to two one-year extension options), and a five-year $50 million term loan, expiring in August 2018. Borrowings under the new facility are initially priced at LIBOR plus 195 bps (a weighted average rate of 2.2% per annum) and, at the closing, the Company had approximately $117 million available for additional borrowings.
2013 Guidance
The Company raised the low end of its 2013 Operating FFO guidance to an updated range of $0.47 to $0.49 per diluted share from $0.46 to $0.49 per diluted share.
Quarterly Dividends
As previously announced, the Company will pay a cash dividend of $0.05 per share on the Company's common stock and $0.453125 per share on the Company's 7.25% Series B Cumulative Redeemable Preferred Stock on August 20, 2013 to shareholders of record as of the close of business on August 9, 2013.
Funds From Operations Reconciliation
The Company reports FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO is a widely-recognized non-GAAP financial measure for REITs that the Company believes, when considered with financial statements prepared in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. The Company's computation of FFO, as detailed in the attached schedule, is in accordance with NAREIT's pronouncements. The Company also presents "Operating FFO", which excludes certain items that are not indicative of the results provided by the Company's consolidated portfolio and that affect the comparability of the Company's period-over-period performance, as also detailed in the attached schedule.
Supplemental Financial Information Package
The Company has issued "Supplemental Financial Information" for the period ended June 30, 2013. Such information has been filed today as an exhibit to Form 8-K and will also be available on the Company's website at www.cedarrealtytrust.com.
Investor Conference Call
The Company will host a conference call today, August 6, 2013, at 5:00 PM (ET) to discuss the second 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 August 6, 2013, until midnight (ET) on August 20, 2013. The replay dial-in numbers are (877) 870-5176 or (1) (858) 384-5517 for international callers. Please use passcode 417096 for the telephonic replay. A replay of the Company's webcast will be available on the Company's website for a limited time.
About Cedar Realty Trust
Cedar Realty Trust, Inc. is a fully-integrated real estate investment trust which focuses on the ownership and operation of primarily grocery-anchored shopping centers straddling the Washington DC to Boston corridor. The Company's portfolio (excluding properties treated as "held for sale") is comprised of 67 properties, with approximately 10 million square feet of GLA.
For additional financial and descriptive information on the Company, its operations and its portfolio, please refer to the Company's website at www.cedarrealtytrust.com.
Forward-Looking Statements
Statements made in this press release that are not strictly historical are "forward-looking" statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance and outcomes to differ materially from those expressed or implied in forward-looking statements. Please refer to the documents filed by Cedar Realty Trust, Inc. with the SEC, specifically the Company's Annual Report on Form 10-K for the year ended December 31, 2012, which identifies important risk factors that could cause actual results to differ from those contained in forward-looking statements.
| CEDAR REALTY TRUST, INC. |
||||
| Condensed Consolidated Balance Sheets |
||||
| June 30, |
December 31, |
|||
| 2013 |
2012 |
|||
| (unaudited) |
||||
| Assets: |
||||
| Real estate |
||||
| Land |
$ 282,714,000 |
$ 282,318,000 |
||
| Buildings and improvements |
1,182,461,000 |
1,178,111,000 |
||
| 1,465,175,000 |
1,460,429,000 |
|||
| Less accumulated depreciation |
(255,656,000) |
(237,751,000) |
||
| Real estate, net |
1,209,519,000 |
1,222,678,000 |
||
| Real estate held for sale/conveyance |
65,026,000 |
77,858,000 |
||
| Cash and cash equivalents |
4,995,000 |
7,522,000 |
||
| Restricted cash |
12,098,000 |
13,752,000 |
||
| Receivables |
19,299,000 |
18,289,000 |
||
| Other assets and deferred charges, net |
24,767,000 |
29,804,000 |
||
| Total assets |
$ 1,335,704,000 |
$ 1,369,903,000 |
||
| Liabilities and equity: |
||||
| Mortgage loans payable |
$ 559,223,000 |
$ 605,216,000 |
||
| Mortgage loans payable - real estate held for sale/conveyance |
18,401,000 |
23,258,000 |
||
| Credit facility |
158,000,000 |
156,000,000 |
||
| Accounts payable and accrued liabilities |
25,161,000 |
28,179,000 |
||
| Unamortized intangible lease liabilities |
28,121,000 |
30,508,000 |
||
| Unamortized intangible lease liabilities - real estate held for sale/conveyance |
4,115,000 |
4,992,000 |
||
| Total liabilities |
793,021,000 |
848,153,000 |
||
| Noncontrolling interest - limited partners' mezzanine OP Units |
644,000 |
623,000 |
||
| Commitments and contingencies |
- |
- |
||
| Equity: |
||||
| Cedar Realty Trust, Inc. shareholders' equity: |
||||
| Preferred stock |
190,661,000 |
163,669,000 |
||
| Common stock and other shareholders' equity |
343,894,000 |
349,987,000 |
||
| Total Cedar Realty Trust, Inc. shareholders' equity |
534,555,000 |
513,656,000 |
||
| Noncontrolling interests: |
||||
| Minority interests in consolidated joint ventures |
6,059,000 |
6,081,000 |
||
| Limited partners' OP Units |
1,425,000 |
1,390,000 |
||
| Total noncontrolling interests |
7,484,000 |
7,471,000 |
||
| Total equity |
542,039,000 |
521,127,000 |
||
| Total liabilities and equity |
$ 1,335,704,000 |
$ 1,369,903,000 |
||
| CEDAR REALTY TRUST, INC. |
||||||||
| Condensed Consolidated Statements of Operations |
||||||||
| (unaudited) |
||||||||
| Three months ended June 30, |
Six months ended June 30, |
|||||||
| 2013 |
2012 |
2013 |
2012 |
|||||
| Revenues: |
||||||||
| Rents |
$ 28,532,000 |
$ 26,913,000 |
$ 56,977,000 |
$ 53,537,000 |
||||
| Expense recoveries |
6,674,000 |
6,343,000 |
14,969,000 |
13,284,000 |
||||
| Other |
165,000 |
3,642,000 |
388,000 |
4,461,000 |
||||
| Total revenues |
35,371,000 |
36,898,000 |
72,334,000 |
71,282,000 |
||||
| Property operating expenses: |
||||||||
| Operating, maintenance and management |
5,557,000 |
5,496,000 |
12,623,000 |
11,866,000 |
||||
| Real estate and other property-related taxes |
4,526,000 |
4,249,000 |
9,123,000 |
8,629,000 |
||||
| Total property operating expenses |
10,083,000 |
9,745,000 |
21,746,000 |
20,495,000 |
||||
| Property operating income |
25,288,000 |
27,153,000 |
50,588,000 |
50,787,000 |
||||
| Other expenses: |
||||||||
| General and administrative |
3,456,000 |
3,737,000 |
6,726,000 |
7,362,000 |
||||
| Employee termination costs |
- |
- |
106,000 |
- |
||||
| Impairment reversal |
- |
- |
(1,100,000) |
- |
||||
| Depreciation and amortization |
9,763,000 |
9,768,000 |
19,585,000 |
25,467,000 |
||||
| Total other expenses |
13,219,000 |
13,505,000 |
25,317,000 |
32,829,000 |
||||
| Operating income |
12,069,000 |
13,648,000 |
25,271,000 |
17,958,000 |
||||
| Non-operating income and expense: |
||||||||
| Interest expense |
(9,143,000) |
(9,721,000) |
(18,245,000) |
(19,876,000) |
||||
| Early extinguishment of debt costs |
(21,000) |
- |
(106,000) |
(2,607,000) |
||||
| Interest income |
2,000 |
62,000 |
2,000 |
124,000 |
||||
| Equity in income of unconsolidated joint venture |
- |
576,000 |
- |
1,021,000 |
||||
| Gain on sale |
- |
79,000 |
346,000 |
79,000 |
||||
| Total non-operating income and expense |
(9,162,000) |
(9,004,000) |
(18,003,000) |
(21,259,000) |
||||
| Income (loss) from continuing operations |
2,907,000 |
4,644,000 |
7,268,000 |
(3,301,000) |
||||
| Discontinued operations: |
||||||||
| Income (loss) from operations |
281,000 |
958,000 |
(228,000) |
2,440,000 |
||||
| Impairment reversals, net |
- |
- |
- |
1,138,000 |
||||
| Gain on extinguishment of debt |
1,298,000 |
- |
1,298,000 |
- |
||||
| Gain on sales |
- |
293,000 |
- |
750,000 |
||||
| Total discontinued operations |
1,579,000 |
1,251,000 |
1,070,000 |
4,328,000 |
||||
| Net income |
4,486,000 |
5,895,000 |
8,338,000 |
1,027,000 |
||||
| Less, net loss (income) loss attributable to noncontrolling interests: |
||||||||
| Minority interests in consolidated joint ventures |
97,000 |
(662,000) |
103,000 |
(1,708,000) |
||||
| Limited partners' interest in Operating Partnership |
(4,000) |
(8,000) |
(1,000) |
97,000 |
||||
| Total net loss (income) loss attributable to noncontrolling interests |
93,000 |
(670,000) |
102,000 |
(1,611,000) |
||||
| Net income (loss) attributable to Cedar Realty Trust, Inc. |
4,579,000 |
5,225,000 |
8,440,000 |
(584,000) |
||||
| Preferred stock dividends |
(3,602,000) |
(3,607,000) |
(7,209,000) |
(7,138,000) |
||||
| Preferred stock redemption costs |
- |
(382,000) |
(1,166,000) |
(382,000) |
||||
| Net income (loss) attributable to common shareholders |
$ 977,000 |
$ 1,236,000 |
$ 65,000 |
$ (8,104,000) |
||||
| Per common share attributable to common shareholders (basic |
||||||||
| and diluted): |
||||||||
| Continuing operations |
$ (0.01) |
$ 0.01 |
$ (0.02) |
$ (0.16) |
||||
| Discontinued operations |
0.02 |
0.00 |
0.02 |
0.03 |
||||
| $ 0.01 |
$ 0.01 |
$ 0.00 |
$ (0.13) |
|||||
| Weighted average number of common shares - basic and diluted |
68,345,000 |
68,038,000 |
68,342,000 |
67,787,000 |
||||
| CEDAR REALTY TRUST, INC. |
||||||||
| Reconciliation of Net Income (Loss) Attributable to Common Shareholders to Funds From Operations |
||||||||
| and Operating Funds From Operations |
||||||||
| Three months ended June 30, |
Six months ended June 30, |
|||||||
| 2013 |
2012 |
2013 |
2012 |
|||||
| Net income (loss) income attributable to common shareholders |
$ 977,000 |
$ 1,236,000 |
$ 65,000 |
$ (8,104,000) |
||||
| Real estate depreciation and amortization |
9,657,000 |
9,712,000 |
19,386,000 |
25,392,000 |
||||
| Limited partners' interest |
4,000 |
8,000 |
1,000 |
(97,000) |
||||
| Impairment reversals, net |
- |
- |
(1,100,000) |
(1,138,000) |
||||
| Gain on sales |
- |
(372,000) |
(346,000) |
(829,000) |
||||
| Consolidated minority interests: |
||||||||
| Share of (loss) income |
(97,000) |
662,000 |
(103,000) |
1,708,000 |
||||
| Share of FFO |
(278,000) |
(1,377,000) |
(695,000) |
(2,791,000) |
||||
| Unconsolidated joint venture: |
||||||||
| Share of income |
- |
(576,000) |
- |
(1,021,000) |
||||
| Share of FFO |
- |
1,587,000 |
- |
3,056,000 |
||||
| Funds From Operations ("FFO") |
10,263,000 |
10,880,000 |
17,208,000 |
16,176,000 |
||||
| Adjustments for items affecting comparability: |
||||||||
| Employee termination costs |
- |
- |
106,000 |
- |
||||
| Preferred stock redemption costs |
- |
382,000 |
1,166,000 |
382,000 |
||||
| Gain on extinguishment of debt |
(1,298,000) |
- |
(1,298,000) |
- |
||||
| Early extinguishment of debt costs |
21,000 |
- |
543,000 |
2,607,000 |
||||
| Share-based compensation mark-to-market adjustments |
- |
(20,000) |
- |
10,000 |
||||
| Operating Funds From Operations ("Operating FFO") |
$ 8,986,000 |
$ 11,242,000 |
$ 17,725,000 |
$ 19,175,000 |
||||
| FFO per diluted share: |
$ 0.14 |
$ 0.15 |
$ 0.24 |
$ 0.23 |
||||
| Operating FFO per diluted share: |
$ 0.12 |
$ 0.16 |
$ 0.24 |
$ 0.27 |
||||
| Weighted average number of diluted common shares: |
||||||||
| Common shares |
72,301,000 |
71,136,000 |
72,122,000 |
70,850,000 |
||||
| OP Units |
281,000 |
462,000 |
281,000 |
637,000 |
||||
| 72,582,000 |
71,598,000 |
72,403,000 |
71,487,000 |
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SOURCE Cedar Realty Trust, Inc.
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