PORT WASHINGTON, N.Y.,
March 30, 2020 /PRNewswire/ -- Cedar
Realty Trust, Inc. (NYSE:CDR – "Cedar" or the "Company") today
issued the following statement regarding COVID-19.
During the COVID-19 Pandemic, Cedar remains committed to our
employees, tenants and the communities in which we operate as well
as safeguarding long-term value for our shareholders. Accordingly,
the Company has taken the following steps:
- Increased liquidity by $75
million. Out of an abundance of caution, the Company has
drawn $75 million on its revolving
credit facility to preserve financial flexibility. After giving
effect to this borrowing, the Company has approximately
$20 million in remaining borrowing
capacity under this facility. The Company's bank group continues to
be highly supportive and the Company has no debt maturities until
February 2021.
- Reduction of regular quarterly common dividend to
$0.01 per share. Beginning with
Q2 2020, the Company's Board of Directors plans on reducing the
quarterly common dividend to $0.01
per share, which will preserve $3.6
million of cash per quarter. The Board of Directors will
monitor the Company's financial performance and adjust the regular
quarterly common dividend at a future time when it is determined to
be prudent.
- Reducing capital expenditures. The Company has begun
taking action to dramatically reduce near-term redevelopment and
other non-essential capital expenditures. In addition, construction
has been halted in Philadelphia at
the direction of the local government. Accordingly, the Company
currently expects that its estimated capital spend in 2020 for its
three ongoing mixed-use urban redevelopment projects will be
approximately $15 million.
- Withdrawing 2020 Earnings Guidance. Given the
uncertainty of the economic impact of the pandemic to businesses,
the Company is withdrawing its previously issued 2020 earnings
guidance.
"The Company will carefully monitor this situation and continue
to take thoughtful and appropriate steps as it evolves," said
Bruce Schanzer, President and Chief
Executive Officer.
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 8.3 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: risks related to the impact of COVID-19 on our
business and the business of our tenants and the economy generally,
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, 2019, 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.
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SOURCE Cedar Realty Trust, Inc.