PORT WASHINGTON, N.Y.,
May 3, 2018 /PRNewswire/
-- Cedar Realty Trust, Inc. (NYSE: CDR – the "Company") today
reported results for the first quarter ended March 31, 2018. Net loss attributable to common
shareholders was ($0.26) per diluted
share compared to net income of $0.10
per diluted share for the comparable 2017 period. Other
highlights include:
Highlights
- NAREIT-defined funds from operations (FFO) of $0.09 per diluted share
- Operating funds from operations (Operating FFO) of $0.13 per diluted share
- Same-property net operating income (NOI) was flat compared to
the same period in 2017
- Signed 48 new and renewal leases for 578,700 square feet in the
quarter
- Total portfolio 92.6% leased and same-property portfolio 93.7%
leased at quarter-end
- Redeemed 2,000,000 shares of 7 ¼% Series B Preferred Stock on
January 12, 2018
"This quarter we renewed a record amount of square footage as we
proactively extended the lease terms for five strong anchor
tenants," commented Bruce Schanzer,
CEO. "Further, we are advancing our urban mixed-use redevelopments
and are excited about the value creation opportunities they
represent as we continue to transform Cedar."
Financial Results
Net loss attributable to common shareholders for the first
quarter of 2018 was ($23.0) million
or ($0.26) per diluted share,
compared to net income of $8.2
million or $0.10 per diluted
share for the same period in 2017. The principal difference in the
comparative three-month results are impairment charges related to
properties held for sale along with preferred stock redemption
costs in 2018 and gain on sale in 2017.
NAREIT-defined FFO for the first quarter of 2018 was
$8.4 million or $0.09 per diluted share, compared to $11.5 million or $0.13 per diluted share for the same period in
2017. Operating FFO for the first quarter of 2018 was $11.9 million or $0.13 per diluted share, compared to $11.7 million or $0.14 per diluted share for the same period in
2017. The principal difference between Operating FFO and
NAREIT-defined FFO is preferred stock redemption costs.
Portfolio Update
During the first quarter of 2018, the Company signed 48 leases
for 578,700 square feet, all of which are comparable, at a negative
lease spread of 7.2% on a cash basis. During the quarter, the
Company proactively renewed and extended the rental terms for five
anchor tenants totaling 303,000 square feet at reduced or flat base
rental rates. These anchor tenants have good credit and generate
high foot traffic at their respective properties. Excluding these
five anchor renewal leases, on a comparable space basis, the
Company's comparable lease spread would have been a positive 2.8%.
Same-property NOI for the first quarter of 2018 was flat as
compared to the same period in 2017.
The Company's total portfolio, excluding properties held for
sale, was 92.6% leased at March 31,
2018, compared to 92.9% at December
31, 2017 and 91.2% at March 31,
2017. The Company's same-property portfolio was 93.7% leased
at March 31, 2018, compared to 93.8%
at December 31, 2017 and 93.2% at
March 31, 2017.
In April 2018, the Company
accepted a payment of $4.3 million in
consideration for permitting a dark anchor tenant to terminate its
lease prior to the contractual expiration, which will be reflected
in the quarter ended June 30, 2018.
This anchor tenant was located at a property held for sale, and
while paying its contractual rent prior to lease termination, it
had closed and ceased retail operations at the property. This
termination will increase NAREIT-defined FFO and Operating FFO for
2018 by approximately $4.7 million or
$0.05 per diluted share, after GAAP
adjustments for amortization of intangible lease liabilities and
straight-line rents, offset by foregone rental payments for the
remainder of 2018.
As of March 31, 2018, Carll's
Corner, located in Bridgeton, New
Jersey, and West Bridgewater Plaza, located in West Bridgewater, Massachusetts, have been
classified as "real estate held for sale". The Company recorded
impairment charges of $21.4 million
in connection with these properties during 2018.
Balance Sheet
As of March 31, 2018, the Company
had $98.7 million available under its
revolving credit facility and reported net debt to earnings before
interest, taxes, depreciations, and amortization for real estate
(EBITDAre) of 7.9 times. Further, the Company has no debt
maturities until early 2021.
2018 Guidance
The Company updates its previously-announced 2018 guidance as
follows:
Net (loss)
attributable to common shareholders per diluted share
|
($0.15) to
($0.13)
|
NAREIT-defined FFO
per diluted share
|
$0.53 to
$0.55
|
Operating FFO per
diluted share
|
$0.58 to
$0.60
|
This updated guidance reflects the approximately $0.24 per diluted share of impairment charges
related to properties held for sale in the first quarter (excluded
from NAREIT-defined FFO and Operating FFO) and the approximately
$0.05 per diluted share of lease
termination income in April 2018. The
principal difference between NAREIT-defined FFO and Operating FFO
is preferred stock redemption costs.
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, 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.
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, 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, May 3, 2018, 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 3, 2018, until midnight (ET) on
May 17, 2018. The replay dial-in
numbers are (844) 512-2921 or (1) (412) 317-6671 for
international callers. Please use passcode 13677839 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 59 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.
CEDAR REALTY
TRUST, INC.
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
|
Real estate, at
cost
|
|
$
1,507,644,000
|
|
$
1,534,599,000
|
Less accumulated
depreciation
|
|
(341,101,000)
|
|
(341,943,000)
|
Real estate,
net
|
|
1,166,543,000
|
|
1,192,656,000
|
Real estate held for
sale
|
|
4,120,000
|
|
-
|
Cash and cash
equivalents
|
|
3,004,000
|
|
3,702,000
|
Restricted
cash
|
|
3,914,000
|
|
3,517,000
|
Receivables
|
|
18,903,000
|
|
17,193,000
|
Other assets and
deferred charges, net
|
|
42,028,000
|
|
35,350,000
|
TOTAL
ASSETS
|
|
$
1,238,512,000
|
|
$
1,252,418,000
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Mortgage loans
payable
|
|
$
127,207,000
|
|
$
127,969,000
|
Unsecured revolving
credit facility
|
|
109,500,000
|
|
55,000,000
|
Unsecured term
loans
|
|
397,309,000
|
|
397,156,000
|
Accounts payable and
accrued liabilities
|
|
25,338,000
|
|
24,519,000
|
Unamortized
intangible lease liabilities
|
|
16,952,000
|
|
17,663,000
|
Total
liabilities
|
|
676,306,000
|
|
622,307,000
|
|
|
|
|
|
Equity:
|
|
|
|
|
Preferred
stock
|
|
159,541,000
|
|
207,508,000
|
Common stock and
other shareholders' equity
|
|
401,021,000
|
|
420,828,000
|
Noncontrolling
interests
|
|
1,644,000
|
|
1,775,000
|
Total
equity
|
|
562,206,000
|
|
630,111,000
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
1,238,512,000
|
|
$
1,252,418,000
|
CEDAR REALTY
TRUST, INC.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2018
|
|
2017
|
PROPERTY
REVENUES
|
|
|
|
|
Rents
|
|
$
28,161,000
|
|
$
28,223,000
|
Expense
recoveries
|
|
9,286,000
|
|
8,348,000
|
Other
|
|
121,000
|
|
203,000
|
Total property
revenues
|
|
37,568,000
|
|
36,774,000
|
PROPERTY OPERATING
EXPENSES
|
|
|
|
|
Operating,
maintenance and management
|
|
7,794,000
|
|
7,044,000
|
Real estate and other
property-related taxes
|
|
5,079,000
|
|
4,745,000
|
Total property
operating expenses
|
|
12,873,000
|
|
11,789,000
|
|
|
|
|
|
PROPERTY OPERATING
INCOME
|
|
24,695,000
|
|
24,985,000
|
|
|
|
|
|
OTHER EXPENSES AND
INCOME
|
|
|
|
|
General and
administrative
|
|
4,494,000
|
|
4,136,000
|
Acquisition pursuit
costs
|
|
-
|
|
156,000
|
Depreciation and
amortization
|
|
10,054,000
|
|
10,418,000
|
Gain on
sale
|
|
-
|
|
(7,099,000)
|
Impairment
charges
|
|
21,396,000
|
|
-
|
Total other expenses
and income
|
|
35,944,000
|
|
7,611,000
|
|
|
|
|
|
OPERATING (LOSS)
INCOME
|
|
(11,249,000)
|
|
17,374,000
|
|
|
|
|
|
NON-OPERATING
INCOME AND EXPENSES
|
|
|
|
|
Interest
expense
|
|
(5,371,000)
|
|
(5,429,000)
|
Total non-operating
income and expense
|
|
(5,371,000)
|
|
(5,429,000)
|
|
|
|
|
|
NET (LOSS)
INCOME
|
|
(16,620,000)
|
|
11,945,000
|
|
|
|
|
|
Attributable to
noncontrolling interests
|
|
(48,000)
|
|
(169,000)
|
|
|
|
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.
|
|
(16,668,000)
|
|
11,776,000
|
|
|
|
|
|
Preferred stock
dividends
|
|
(2,799,000)
|
|
(3,602,000)
|
Preferred stock
redemption costs
|
|
(3,507,000)
|
|
-
|
|
|
|
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
|
$
(22,974,000)
|
|
$
8,174,000
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
PER COMMON SHARE ATTRIBUTABLE TO COMMON
SHAREHOLDERS (BASIC AND DILUTED)
|
|
$
(0.26)
|
|
$
0.10
|
|
|
|
|
|
Weighted average
number of common shares - basic and diluted
|
|
87,623,000
|
|
81,734,000
|
CEDAR REALTY
TRUST, INC.
|
Reconciliation of
Net (Loss) Income Attributable to Common Shareholders
to
|
Funds From
Operations and Operating Funds From Operations
|
(unaudited)
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2018
|
|
2017
|
Net (loss) income
attributable to common shareholders
|
|
$
(22,974,000)
|
|
$
8,174,000
|
Real estate
depreciation and amortization
|
|
10,004,000
|
|
10,375,000
|
Limited partners'
interest
|
|
(87,000)
|
|
32,000
|
Gain on
sales
|
|
-
|
|
(7,099,000)
|
Impairment
charges
|
|
21,396,000
|
|
-
|
Consolidated minority
interests:
|
|
|
|
|
Share of
income
|
|
135,000
|
|
137,000
|
Share of
FFO
|
|
(124,000)
|
|
(105,000)
|
Funds From
Operations ("FFO") applicable to diluted common
shares
|
|
8,350,000
|
|
11,514,000
|
Adjustments for items
affecting comparability:
|
|
|
|
|
Preferred stock
redemption costs
|
|
3,507,000
|
|
-
|
Acquisition pursuit
costs
|
|
-
|
|
156,000
|
Operating Funds
From Operations ("Operating FFO") applicable to diluted common
shares
|
|
$
11,857,000
|
|
$
11,670,000
|
|
|
|
|
|
FFO per diluted
common share:
|
|
$
0.09
|
|
$
0.13
|
|
|
|
|
|
Operating FFO per
diluted common share:
|
|
$
0.13
|
|
$
0.14
|
|
|
|
|
|
Weighted average
number of diluted common shares:
|
|
|
|
|
Common
shares
|
|
91,647,000
|
|
85,472,000
|
OP Units
|
|
347,000
|
|
351,000
|
|
|
91,994,000
|
|
85,823,000
|
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SOURCE Cedar Realty Trust, Inc.