MASSAPEQUA, N.Y., Nov. 4, 2021 /PRNewswire/ -- Cedar Realty
Trust, Inc. (NYSE: CDR – the "Company") today reported results for
the third quarter of 2021. Net loss attributable to common
shareholders was $(6.28) per diluted
share. Other highlights include:
Operating Highlights
- NAREIT-defined Funds from operations (FFO) of $0.62 per diluted share for the quarter
- Operating FFO of $0.63 per
diluted share for the quarter
- Collected 96.8% of base rents and monthly charges for the
quarter
- Same-property net operating income (NOI) increased 10.5% for
the quarter
- Signed 29 comparable leases for 216,800 square feet
-
- Signed 19 renewal leases for 87,900 square feet at an increase
of 2.5%
- Signed 10 new leases for 128,900 square feet at an increase of
52.7%
Balance Sheet Highlights
- On August 30, 2021, the Company
amended its existing $300 million
unsecured credit facility and $50
million term loan with a new $185
million unsecured revolving credit facility with an
expiration in August 2024
- On September 9, 2021, the Company
announced that it is exploring a potential sale or merger involving
the entire Company, and alternatively the potential sale of its
core grocery-anchored shopping center portfolio and its mixed-use
redevelopment projects
Financial Results
Net loss attributable to common shareholders for the third
quarter of 2021 was $(83.2) million
or $(6.28) per diluted share,
compared to net loss of $(1.4)
million or $(0.11) per diluted
share for the same period in 2020. Net loss attributable to common
shareholders for the nine-month period ended September 30, 2021 was $(36.4) million or $(2.77) per diluted share, compared to net loss
of $(15.1) million or $(1.17) per dilutive share for the same period of
2020. The principal differences in the comparative three and nine
month results were gain on sales of properties in 2021, and
impairment (reversal) charges on a properties held for sale in 2021
and 2020, a lease termination fee from a property held for sale in
2020, and the acceleration of depreciation relating to the
demolition of certain existing buildings at redevelopment
properties in 2020.
NAREIT-defined FFO for the third quarter of 2021 was
$8.6 million or $0.62 per diluted share, compared to $8.0 million or $0.58 per diluted share for the same period in
2020. Operating FFO for the third quarter of 2021 was
$8.8 million or $0.63 per diluted share, compared to $8.0 million or $0.58 per diluted share for the same period in
2020. The difference between Operating FFO and NAREIT-defined FFO
in 2020 was redevelopment costs and financing costs. The
principal difference in the comparative three-month NAREIT-defined
FFO and Operating FFO was the second quarter of 2020 was
significantly impacted by the effects of COVID-19.
NAREIT-defined FFO for the nine months ended September 30, 2021 was $25.4 million or $1.84 per diluted share, compared to $30.0 million or $2.17 per dilutive share for the same period in
2020. Operating FFO for the nine months ended September 30, 2021 was $25.8 million or $1.87 per diluted share, as compared to
$30.5 million or $2.20 per dilutive share for the same period in
2020. The principal differences between the comparative nine-month
NAREIT-defined FFO and Operating FFO results were the effects
of COVID-19 and lease termination income in 2020.
Portfolio Update
During the third quarter of 2021, the Company signed 33 leases
for 230,200 square feet. On a comparable space basis, the Company
signed 19 renewal leases for 87,900 square feet at an increase of
2.5% and 10 new leases for 128,900 square feet at an increase of
52.7%. During the nine-month period ended September 30, 2021, the Company signed 104 leases
for 707,500 square feet. On a comparable space basis, the Company
signed 63 renewal leases for 385,200 square feet at an increase of
1.6% and 29 new leases for 208,500 square feet at an increase of
16.0%.
Excluding redevelopments, same-property NOI increased 10.5% for
the third quarter of 2021 and increased 3.8% for the nine months
ended September 30, 2021, as compared
to the same periods of 2020. Including redevelopments same-property
NOI increased 9.5% for the third quarter of 2021 and 2.5% for the
nine months ended September 30, 2021,
as compared to the same periods of 2020. The third quarter of 2020
was significantly impacted by the effects of COVID-19.
The Company's same-property portfolio was 91.4% leased at
September 30, 2021, compared to 90.9%
at June 30, 2021 and 92.0% at
September 30, 2020. The Company's
total portfolio, excluding properties held for sale, was 89.8%
leased at September 30, 2021,
compared to 88.7% at June 30, 2021
and 89.8% at September 30, 2020.
During the third quarter of 2021, the Company executed four
anchor leases for 115,819 square feet. Hobby Lobby and Grocery
Outlet will be our new anchors at Valley Plaza, back filling a
former Kmart box. Additionally, Porter and Chester Institute will
join the lineup at the ShopRite-anchored New London Mall and
PetSmart will join the lineup at Colonial Commons.
Balance Sheet
On August 30, 2021, the Company
amended its existing $300 million
unsecured credit facility and $50
million term loan. After the amendment, the new unsecured
revolving credit facility is $185
million with an expiration in August
2024. The new unsecured revolving credit facility may be
extended, at the Company's option for two additional one-year
periods, subject to customary conditions. Interest on the
borrowings under the new unsecured revolving credit facility
component can range from LIBOR plus 135 bps to 195 bps (150 bps at
September 30, 2021), based on the
Company's leverage ratio. Interest on borrowings under the
unsecured credit facility is based on the Company's leverage ratio.
The Company extended its $50 million
term note four years with an expiration in August 2026. As of September 30, 2021, the Company had $66.0 million outstanding and $117.9 million available for additional
borrowings under its revolving credit facility and was in
compliance with all financial covenants.
On September 9, 2021, the Company
announced that it is exploring, among other alternatives, a
potential sale or merger involving the entire Company, and
alternatively the potential sale of its core grocery-anchored
shopping center portfolio and its mixed-use redevelopment projects.
As part of this dual-track strategic alternatives process, the
Company has determined that certain of the Company's operating
properties would be sold significantly prior to the end of their
previously estimated hold periods. Therefore, the Company recorded
$82.7 million in impairment
charges.
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 and nine months ended September 30, 2021 and 2020 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 management
transition, 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 September 30, 2021.
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.
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 53 properties, with approximately 7.6 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
Certain statements made in this press release that are not
strictly historical 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, may involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of Cedar Realty Trust, Inc. (the "Company") to be
materially different from future results, performance or
achievements expressed or implied by such forward-looking
statements. Forward-looking statements, which are based on certain
assumptions and describe the Company's future plans, strategies and
expectations, are generally identifiable by use of the words "may",
"will", "should", "estimates", "projects", "anticipates",
"believes", "expects", "intends", "future", and words of similar
import, or the negative thereof. Factors that could cause actual
results, performance or achievements to differ materially from
current expectations include, but are not limited to: (i) the
economic, political and social impact of, and uncertainty relating
to, the COVID-19 pandemic, including: (a) the effectiveness or lack
of effectiveness of governmental relief in providing assistance to
large and small businesses, particularly including our retail
tenants and other retailers, that have suffered significant
declines in revenues as a result of mandatory business shut-downs,
"shelter-in-place" or "stay-at-home" orders and social distancing
practices, as well as individuals adversely impacted by the
COVID-19 pandemic, (b) the duration of any such orders or other
formal recommendations for social distancing and the speed and
extent to which revenues of our retail tenants recover following
the lifting of any such orders or recommendations, (c) the
potential impact of any such events on the obligations of the
Company's tenants to make rent and other payments or honor other
commitments under existing leases, (d) the potential adverse impact
on returns from redevelopment projects, (e) to the extent we were
seeking to sell properties in the near term, significantly greater
uncertainty regarding our ability to do so at attractive prices,
and (f) the broader impact of the severe economic contraction and
increase in unemployment that has occurred in the short term and
negative consequences that will occur if these trends are not
quickly reversed; (ii) the ability and willingness of the Company's
tenants and other third parties to satisfy their obligations under
their respective contractual arrangements with the Company; (iii)
the loss or bankruptcy of the Company's tenants, particularly in
light of the adverse impact to the financial health of many
retailers that has occurred and continues to occur as a result of
the COVID-19 pandemic; (iv) the ability and willingness of the
Company's tenants to renew their leases with the Company upon
expiration, the Company's ability to re-lease its properties on the
same or better terms in the event of nonrenewal or in the event the
Company exercises its right to replace an existing tenant, and
obligations the Company may incur in connection with the
replacement of an existing tenant, particularly, in light of the
adverse impact to the financial health of many retailers that has
occurred and continues to occur as a result of the COVID-19
pandemic, and the significant uncertainty as to when and the
conditions under which potential tenants will be able to operate
physical retail locations in future; (v) macroeconomic conditions,
such as a disruption of or lack of access to capital markets and
the adverse impact of the recent significant decline in the
Company's share price from prices prior to the spread of the
COVID-19 pandemic; (vi) financing risks, such as the Company's
inability to obtain new financing or refinancing on favorable terms
as the result of market volatility or instability; (vii) increases
in the Company's borrowing costs as a result of changes in interest
rates and other factors, including the potential phasing out of
LIBOR after 2021; (viii) the impact of the Company's leverage on
operating performance; (ix) risks related to the market for retail
space generally, including reductions in consumer spending,
variability in retailer demand for leased space, adverse impact of
e-commerce, ongoing consolidation in the retail sector and changes
in economic conditions and consumer confidence; (x) risks endemic
to real estate and the real estate industry generally; (xi)
competitive risks; (xii) risks related to the geographic
concentration of the Company's properties in the Washington, D.C.
to Boston corridor; (xiii) damage to the Company's properties from
catastrophic weather and other natural events, and the physical
effects of climate change; (xiv) the inability of the Company to
realize anticipated returns from its redevelopment activities; (xv)
uninsured losses; (xvi) the Company's ability and willingness to
maintain its qualification as a REIT in light of economic, market,
legal, tax and other considerations; and (xvii) information
technology security breaches. For further discussion of factors
that could materially affect the outcome of forward-looking
statements, see "Risk Factors" in Part I, Item 1A, of the Company's
Annual Report on Form 10-K for the years ended December 31, 2020
and December 31, 2019, when available, and other documents that the
Company files with the Securities and Exchange Commission from time
to time.
Except for ongoing obligations to disclose material information
as required by the federal securities laws, the Company undertakes
no obligation to release publicly any revisions to any
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events. All of the above factors are difficult to predict, contain
uncertainties that may materially affect the Company's actual
results and may be beyond the Company's control. New factors
emerge from time to time, and it is not possible for the Company's
management to predict all such factors or to assess the effects of
each factor on the Company's business. Accordingly, there can be no
assurance that the Company's current expectations will be
realized.
CEDAR REALTY
TRUST, INC.
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
September
30,
|
|
December
31,
|
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
|
Real estate, at
cost
|
|
$
1,398,188,000
|
|
$
1,527,478,000
|
Less accumulated
depreciation
|
|
(432,488,000)
|
|
(428,569,000)
|
Real estate,
net
|
|
965,700,000
|
|
1,098,909,000
|
Real estate held for
sale
|
|
1,876,000
|
|
9,498,000
|
Investment in
unconsolidated joint venture
|
|
3,193,000
|
|
-
|
Cash and cash
equivalents
|
|
4,731,000
|
|
1,637,000
|
Restricted
cash
|
|
230,000
|
|
-
|
Receivables
|
|
22,290,000
|
|
21,952,000
|
Other assets and
deferred charges, net
|
|
38,751,000
|
|
45,255,000
|
TOTAL
ASSETS
|
|
$
1,036,771,000
|
|
$
1,177,251,000
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Mortgage loan
payable, net
|
|
$
157,040,000
|
|
$
45,385,000
|
Finance lease
obligation
|
|
5,324,000
|
|
5,340,000
|
Unsecured revolving
credit facility
|
|
66,000,000
|
|
175,000,000
|
Unsecured term loans,
net
|
|
298,809,000
|
|
398,549,000
|
Accounts payable and
accrued liabilities
|
|
45,173,000
|
|
56,580,000
|
Unamortized
intangible lease liabilities
|
|
8,066,000
|
|
8,939,000
|
Total
liabilities
|
|
580,412,000
|
|
689,793,000
|
|
|
|
|
|
Equity:
|
|
|
|
|
Preferred
stock
|
|
159,541,000
|
|
159,541,000
|
Common stock and
other shareholders' equity
|
|
292,684,000
|
|
323,957,000
|
Noncontrolling
interests
|
|
4,134,000
|
|
3,960,000
|
Total
equity
|
|
456,359,000
|
|
487,458,000
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
1,036,771,000
|
|
$
1,177,251,000
|
|
|
|
|
|
CEDAR REALTY
TRUST, INC.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
PROPERTY
REVENUES
|
|
|
|
|
|
|
|
|
Rental
revenues
|
|
$
30,395,000
|
|
$
30,890,000
|
|
$
95,611,000
|
|
$
94,466,000
|
Other
|
|
167,000
|
|
285,000
|
|
722,000
|
|
7,814,000
|
Total property
revenues
|
|
30,562,000
|
|
31,175,000
|
|
96,333,000
|
|
102,280,000
|
PROPERTY OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Operating,
maintenance and management
|
|
5,570,000
|
|
5,579,000
|
|
19,646,000
|
|
18,808,000
|
Real estate and other
property-related taxes
|
|
4,797,000
|
|
5,253,000
|
|
14,968,000
|
|
15,353,000
|
Total property
operating expenses
|
|
10,367,000
|
|
10,832,000
|
|
34,614,000
|
|
34,161,000
|
|
|
|
|
|
|
|
|
|
PROPERTY OPERATING
INCOME
|
|
20,195,000
|
|
20,343,000
|
|
61,719,000
|
|
68,119,000
|
|
|
|
|
|
|
|
|
|
OTHER EXPENSES AND
INCOME
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
4,229,000
|
|
3,925,000
|
|
13,630,000
|
|
12,833,000
|
Depreciation and
amortization
|
|
9,510,000
|
|
10,035,000
|
|
30,978,000
|
|
38,208,000
|
Gain on
sales
|
|
-
|
|
(679,000)
|
|
(49,904,000)
|
|
(679,000)
|
Impairment
charges
|
|
82,736,000
|
|
-
|
|
80,887,000
|
|
7,607,000
|
Total other expenses
and income
|
|
96,475,000
|
|
13,281,000
|
|
75,591,000
|
|
57,969,000
|
|
|
|
|
|
|
|
|
|
OPERATING (LOSS)
INCOME
|
|
(76,280,000)
|
|
7,062,000
|
|
(13,872,000)
|
|
10,150,000
|
|
|
|
|
|
|
|
|
|
NON-OPERATING
INCOME AND EXPENSES
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(4,603,000)
|
|
(5,658,000)
|
|
(14,294,000)
|
|
(16,853,000)
|
Total non-operating
income and expense
|
|
(4,603,000)
|
|
(5,658,000)
|
|
(14,294,000)
|
|
(16,853,000)
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
|
(80,883,000)
|
|
1,404,000
|
|
(28,166,000)
|
|
(6,703,000)
|
|
|
|
|
|
|
|
|
|
Attributable to
noncontrolling interests
|
|
367,000
|
|
(137,000)
|
|
(183,000)
|
|
(373,000)
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.
|
|
(80,516,000)
|
|
1,267,000
|
|
(28,349,000)
|
|
(7,076,000)
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
|
(2,688,000)
|
|
(2,688,000)
|
|
(8,064,000)
|
|
(8,064,000)
|
|
|
|
|
|
|
|
|
|
NET LOSS
ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
|
$
(83,204,000)
|
|
$
(1,421,000)
|
|
$
(36,413,000)
|
|
$
(15,140,000)
|
|
|
|
|
|
|
|
|
|
NET LOSS PER
COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND
DILUTED):
|
|
$
(6.28)
|
|
$
(0.11)
|
|
$
(2.77)
|
|
$
(1.17)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares - basic and diluted
|
|
13,252,000
|
|
13,110,000
|
|
13,191,000
|
|
13,101,000
|
|
|
|
|
|
|
|
|
|
CEDAR REALTY
TRUST, INC.
|
Reconciliation of
Net Loss Attributable to Common Shareholders to Funds From
Operations
|
and Operating
Funds From Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net loss
attributable to common shareholders
|
|
$
(83,204,000)
|
|
$
(1,421,000)
|
|
$
(36,413,000)
|
|
$
(15,140,000)
|
Real estate
depreciation and amortization
|
|
9,497,000
|
|
10,010,000
|
|
30,917,000
|
|
38,115,000
|
Limited partners'
interest
|
|
(492,000)
|
|
(7,000)
|
|
(214,000)
|
|
(87,000)
|
Gain on
sales
|
|
-
|
|
(679,000)
|
|
(49,904,000)
|
|
(679,000)
|
Impairment
charges
|
|
82,736,000
|
|
-
|
|
80,887,000
|
|
7,607,000
|
Consolidated minority
interests:
|
|
|
|
|
|
|
|
|
Share of
income
|
|
125,000
|
|
144,000
|
|
397,000
|
|
460,000
|
Share of
FFO
|
|
(78,000)
|
|
(15,000)
|
|
(279,000)
|
|
(276,000)
|
Funds From
Operations ("FFO") applicable to diluted common
shares
|
|
8,584,000
|
|
8,032,000
|
|
25,391,000
|
|
30,000,000
|
Adjustments for items
affecting comparability:
|
|
-
|
|
-
|
|
|
|
|
Redevelopment costs
(a)
|
|
-
|
|
-
|
|
230,000
|
|
483,000
|
Financing costs
(b)
|
|
171,000
|
|
-
|
|
215,000
|
|
-
|
Operating Funds
From Operations ("Operating FFO") applicable to diluted common
shares
|
|
$
8,755,000
|
|
$
8,032,000
|
|
$
25,836,000
|
|
$
30,483,000
|
|
|
|
|
|
|
|
|
|
FFO per diluted
common share:
|
|
$
0.62
|
|
$
0.58
|
|
$
1.84
|
|
$
2.17
|
|
|
|
|
|
|
|
|
|
Operating FFO per
diluted common share:
|
|
$
0.63
|
|
$
0.58
|
|
$
1.87
|
|
$
2.20
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted common shares:
|
|
|
|
|
|
|
|
|
Common shares and
equivalents
|
|
13,790,000
|
|
13,760,000
|
|
13,751,000
|
|
13,758,000
|
OP Units
|
|
81,000
|
|
81,000
|
|
81,000
|
|
81,000
|
|
|
13,871,000
|
|
13,841,000
|
|
13,832,000
|
|
13,839,000
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/cedar-realty-trust-reports-third-quarter-2021-results-301416989.html
SOURCE Cedar Realty Trust, Inc.