PORT WASHINGTON, N.Y.,
May 14, 2020 /PRNewswire/
-- Cedar Realty Trust, Inc. (NYSE:CDR – the "Company") today
reported results for the first quarter 2020. Net loss attributable
to common shareholders was $(0.06)
per diluted share compared to net income of $0.00 per diluted share for the comparable 2019
period. Other highlights include:
First Quarter 2020 Highlights
- NAREIT-defined funds from operations (FFO) and Operating funds
from operations (Operating FFO) of $0.18 per diluted share (includes $0.08 per share of lease termination income)
- Same-property net operating income (NOI) increased 0.8%
compared to the same period in 2019
- Signed 30 new and renewal leases for 309,500 square feet in the
quarter
- Same-property portfolio 93.2% leased at quarter-end
COVID-19 Update (as of May 12,
2020)
- All shopping centers remain operational
- Tenants representing approximately 60% of the Company's
annualized base rent are open and operating, including those
operating on a limited basis
- Collected 70% of April and 65% of May base rents and monthly
charges
- In Q1 2020, the Company, out of an abundance of caution,
borrowed $75 million on its revolving
credit facility to preserve financial flexibility and now has
approximately $72 million of cash and
no debt maturities until February
2021
- The Company's Board of Directors reduced the regular quarterly
common dividend beginning in Q2 2020 to $0.01 per share and will monitor the Company's
financial performance and adjust it at a future time when it is
determined to be prudent
- The Company has taken action to reduce near-term redevelopment
capital and currently expects full year 2020 capital spend for its
mixed-use urban redevelopments and value add renovations combined
to be approximately $20 million
(excluding approximately $7.5 million
of capitalized overhead, interest and real estate taxes under GAAP)
and the Company is continuing to evaluate ways to further reduce
this spend
- The Company withdrew its full-year earnings 2020 guidance given
the uncertain economic impact resulting from COVID-19
"First and foremost, our thoughts and prayers go out to all of
those impacted by COVID-19 along with great appreciation for those
operating on the front lines," said Bruce
Schanzer, President and Chief Executive Officer. "From a
company perspective, we are gratified that our primarily
grocery-anchored shopping center portfolio has performed relatively
well during this unprecedented time. I am proud to say,
however, that the relative outperformance we have seen is not just
a function of our assets, but is very much a credit to Team
Cedar. I could not be prouder of my colleagues and the way
they have helped us navigate through this economic storm."
Financial Results
Net loss attributable to common shareholders for the first
quarter of 2020 was $(4.9) million or
$(0.06) per diluted share, compared
to net income of $0.2 million or
$0.00 per diluted share for the same
period in 2019. The principal differences in the comparative
three-month results were lease termination income, an impairment
charge on a property held for sale, and the acceleration of
depreciation relating to the demolition of certain existing
buildings at redevelopment properties in 2020.
NAREIT-defined FFO for the first quarter of 2020 was
$16.3 million or $0.18 per diluted share, compared to $10.2 million or $0.11 per diluted share for the same period in
2019. Operating FFO for the first quarter of 2020 was $16.7 million or $0.18 per diluted share, compared to $10.2 million or $0.11 per diluted share for the same period in
2019. The difference between Operating FFO and NAREIT-defined FFO
in 2020 was redevelopment costs. The principal difference between
the comparative three-month Operating FFO results was lease
termination income in 2020.
Portfolio Update
During the first quarter of 2020, the Company signed 30 leases
for 309,500 square feet. On a comparable space basis, the Company
leased 307,900 square feet at a negative lease spread of (0.4)% on
a cash basis (new leases decreased 7.5% and renewals increased
0.9%).
Same-property NOI increased 0.8% excluding redevelopment
properties compared to the same period in 2019.
The Company's same-property portfolio was 93.2% leased at
March 31, 2020, compared to 93.0% at
December 31, 2019 and 91.9% at
March 31, 2019. The Company's total
portfolio, excluding properties held for sale, was 91.8% leased at
March 31, 2020, compared to 93.2% at
December 31, 2019 and 90.5% at
March 31, 2019. The sequential
decrease in total leased portfolio percentage was driven by
proactively recapturing the K-Mart space at Valley Plaza in early
2020 to facilitate a future value-add renovation.
Balance Sheet
The Company reported net debt to earnings before interest,
taxes, depreciations, and amortization for real estate (EBITDAre)
of 8.8 times for the quarter ended March 31,
2020 and was in compliance with all financial covenants.
As of March 31, 2020, The Commons,
located in Dubois, Pennsylvania,
Carll's Corner, located in Bridgeton, New Jersey, Suffolk Plaza,
located in Suffolk, Virginia, and
Metro Square, located in Owings Mills,
Maryland, have been classified as "real estate held for
sale".
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, 2020 and 2019 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 March 31, 2020. 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 14, 2020, 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 14, 2020, until midnight (ET) on
May 28, 2020. The replay dial-in
numbers are (844) 512-2921 or (1) (412) 317-6671 for
international callers. Please use passcode 13702201 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 55 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
Certain statements made in this 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 year ended December 31, 2019 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)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
|
ASSETS
|
|
|
|
|
|
Real estate, at
cost
|
|
$
1,508,784,000
|
|
$
1,515,206,000
|
|
Less accumulated
depreciation
|
|
(398,367,000)
|
|
(389,861,000)
|
|
Real estate,
net
|
|
1,110,417,000
|
|
1,125,345,000
|
|
Real estate held for
sale
|
|
17,073,000
|
|
13,230,000
|
|
Cash and cash
equivalents
|
|
74,882,000
|
|
2,747,000
|
|
Receivables
|
|
22,850,000
|
|
22,164,000
|
|
Other assets and
deferred charges, net
|
|
43,552,000
|
|
42,139,000
|
|
TOTAL
ASSETS
|
|
$
1,268,774,000
|
|
$
1,205,625,000
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Mortgage loan
payable
|
|
$
46,127,000
|
|
$
46,370,000
|
|
Finance lease
obligation
|
|
5,358,000
|
|
5,364,000
|
|
Unsecured revolving
credit facility
|
|
182,000,000
|
|
106,000,000
|
|
Unsecured term
loans
|
|
473,018,000
|
|
472,841,000
|
|
Accounts payable and
accrued liabilities
|
|
61,654,000
|
|
50,502,000
|
|
Unamortized
intangible lease liabilities
|
|
9,966,000
|
|
10,473,000
|
|
Total
liabilities
|
|
778,123,000
|
|
691,550,000
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Preferred
stock
|
|
159,541,000
|
|
159,541,000
|
|
Common stock and
other shareholders' equity
|
|
327,570,000
|
|
351,020,000
|
|
Noncontrolling
interests
|
|
3,540,000
|
|
3,514,000
|
|
Total
equity
|
|
490,651,000
|
|
514,075,000
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
1,268,774,000
|
|
$
1,205,625,000
|
CEDAR REALTY
TRUST, INC.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2020
|
|
2019
|
PROPERTY
REVENUES
|
|
|
|
|
Rental
revenues
|
|
$
35,115,000
|
|
$
36,592,000
|
Other
|
|
7,370,000
|
|
291,000
|
Total property
revenues
|
|
42,485,000
|
|
36,883,000
|
PROPERTY OPERATING
EXPENSES
|
|
|
|
|
Operating,
maintenance and management
|
|
7,721,000
|
|
7,967,000
|
Real estate and other
property-related taxes
|
|
5,122,000
|
|
5,210,000
|
Total property
operating expenses
|
|
12,843,000
|
|
13,177,000
|
|
|
|
|
|
PROPERTY OPERATING
INCOME
|
|
29,642,000
|
|
23,706,000
|
|
|
|
|
|
OTHER EXPENSES AND
INCOME
|
|
|
|
|
General and
administrative
|
|
5,002,000
|
|
4,798,000
|
Depreciation and
amortization
|
|
13,747,000
|
|
10,129,000
|
Gain on
sales
|
|
-
|
|
(101,000)
|
Impairment
charges
|
|
7,474,000
|
|
-
|
Total other expenses
and income
|
|
26,223,000
|
|
14,826,000
|
|
|
|
|
|
OPERATING
INCOME
|
|
3,419,000
|
|
8,880,000
|
|
|
|
|
|
NON-OPERATING
INCOME AND EXPENSES
|
|
|
|
|
Interest
expense
|
|
(5,517,000)
|
|
(5,891,000)
|
Total non-operating
income and expense
|
|
(5,517,000)
|
|
(5,891,000)
|
|
|
|
|
|
NET (LOSS)
INCOME
|
|
(2,098,000)
|
|
2,989,000
|
|
|
|
|
|
Attributable to
noncontrolling interests
|
|
(148,000)
|
|
(107,000)
|
|
|
|
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.
|
|
(2,246,000)
|
|
2,882,000
|
|
|
|
|
|
Preferred stock
dividends
|
|
(2,688,000)
|
|
(2,688,000)
|
|
|
|
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
|
$
(4,934,000)
|
|
$
194,000
|
|
|
|
|
|
NET (LOSS) INCOME
PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND
DILUTED):
|
|
$
(0.06)
|
|
$
0.00
|
|
|
|
|
|
Weighted average
number of common shares - basic and diluted
|
|
86,370,000
|
|
86,580,000
|
|
|
|
|
|
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,
|
|
|
2020
|
|
2019
|
Net (loss) income
attributable to common shareholders
|
|
$
(4,934,000)
|
|
$
194,000
|
Real estate
depreciation and amortization
|
|
13,705,000
|
|
10,083,000
|
Limited partners'
interest
|
|
(28,000)
|
|
2,000
|
Gain on
sales
|
|
-
|
|
(101,000)
|
Impairment
charges
|
|
7,474,000
|
|
-
|
Consolidated minority
interests:
|
|
|
|
|
Share of
income
|
|
176,000
|
|
105,000
|
Share of
FFO
|
|
(143,000)
|
|
(79,000)
|
Funds From
Operations ("FFO") applicable to diluted common
shares
|
|
16,250,000
|
|
10,204,000
|
Adjustments for items
affecting comparability:
|
|
|
|
|
Redevelopment
costs
|
|
483,000
|
|
-
|
Operating Funds
From Operations ("Operating FFO") applicable to diluted
common shares
|
|
$
16,733,000
|
|
$
10,204,000
|
|
|
|
|
|
FFO per diluted
common share:
|
|
$
0.18
|
|
$
0.11
|
|
|
|
|
|
Operating FFO per
diluted common share:
|
|
$
0.18
|
|
$
0.11
|
|
|
|
|
|
Weighted average
number of diluted common shares:
|
|
|
|
|
Common shares and
equivalents
|
|
90,767,000
|
|
90,862,000
|
OP Units
|
|
537,000
|
|
553,000
|
|
|
91,304,000
|
|
91,415,000
|
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SOURCE Cedar Realty Trust, Inc.