Cedar Realty Trust, Inc 10-Q for FY2022 Q1

Cedar Realty Trust, Inc. (CDR-PB)

10-Q 2022-05-05 For: 2022-03-31

Added on April 06, 2026

About this 10-Q

Cedar Realty Trust, Inc filed this 10-Q on May 5, 2022, covering the quarter ended March 31, 2022 (FY2022 Q1).

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $30.46M; down 9.2% from $33.55M a year earlier
Net loss: $1.06M; compared with net income of $1.11M a year earlier

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Title of each class	Name of each exchange on which registered	Trading Symbol(s)
Common Stock, $0.06 par value	New York Stock Exchange	CDR
7-1/4% Series B Cumulative Redeemable Preferred Stock, $25.00 Liquidation Value	New York Stock Exchange	CDRpB
6-1/2% Series C Cumulative Redeemable Preferred Stock, $25.00 Liquidation Value	New York Stock Exchange	CDRpC

Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☐

Emerging growth company	☐

Forward-Looking Statements		3

Part I. Financial Information

Item 1.	Financial Statements (unaudited)

	Consolidated Balance Sheets – March 31, 2022 and December 31, 2021	4

	Consolidated Statements of Operations – Three months ended March 31, 2022 and 2021	5

	Consolidated Statements of Comprehensive Income – Three months ended March 31, 2022 and 2021	6
	Consolidated Statements of Equity – Three months ended March 31, 2022 and 2021	7-8

	Consolidated Statements of Cash Flows – Three months ended March 31, 2022 and 2021	9

	Notes to Consolidated Financial Statements – March 31, 2022	10-19

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20-27

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27-28

Item 4.	Controls and Procedures	28

Part II. Other Information

Item 1.	Legal Proceedings	29

Item 1A.	Risk Factors	29

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29

Item 3.	Defaults Upon Senior Securities	29

Item 4.	Mine Safety Disclosures	29

Item 5.	Other Information	30

Item 6.	Exhibits	30

Signatures		31

	March 31,			December 31,
	2022			2021
ASSETS
Real estate:
Land	$	259,968,000		$	259,968,000
Buildings and improvements		1,038,708,000			1,028,556,000
		1,298,676,000			1,288,524,000
Less accumulated depreciation		(417,298,000	)		(409,742,000	)
Real estate, net		881,378,000			878,782,000

Real estate held for sale		73,702,000			73,251,000
Investment in unconsolidated joint venture		4,809,000			4,654,000
Cash and cash equivalents		2,093,000			3,039,000
Restricted cash		230,000			230,000
Receivables		22,467,000			21,868,000
Other assets and deferred charges, net		37,412,000			35,070,000
TOTAL ASSETS	$	1,022,091,000		$	1,016,894,000

LIABILITIES AND EQUITY
Mortgage loan payable	$	156,599,000		$	156,821,000
Finance lease obligation		5,307,000			5,314,000
Unsecured revolving credit facility		70,000,000			66,000,000
Unsecured term loans		298,998,000			298,903,000
Accounts payable and accrued liabilities		40,072,000			42,099,000
Unamortized intangible lease liabilities		7,518,000			7,789,000
Total liabilities		578,494,000			576,926,000

Commitments and contingencies		-			-

Equity:
Cedar Realty Trust, Inc. shareholders' equity:
Preferred stock		159,541,000			159,541,000
Common stock ($0.06 par value, 150,000,000 shares authorized, 13,637,000 and 13,658,000 shares, issued and outstanding, respectively)		819,000			820,000
Treasury stock (333,000 and 387,000 shares, respectively, at cost)		(10,807,000	)		(13,266,000	)
Additional paid-in capital		878,508,000			881,009,000
Cumulative distributions in excess of net income		(587,109,000	)		(582,464,000	)
Accumulated other comprehensive (loss)		31,000			(8,258,000	)
Total Cedar Realty Trust, Inc. shareholders' equity		440,983,000			437,382,000
Noncontrolling interests:
Limited partners' OP Units		2,614,000			2,586,000
Total noncontrolling interests		2,614,000			2,586,000
Total equity		443,597,000			439,968,000
TOTAL LIABILITIES AND EQUITY	$	1,022,091,000		$	1,016,894,000

	Three months ended March 31,
	2022			2021
REVENUES
Rental revenues	$	30,207,000		$	33,336,000
Other		257,000			215,000
Total revenues		30,464,000			33,551,000
EXPENSES
Operating, maintenance and management		7,129,000			7,780,000
Real estate and other property-related taxes		4,498,000			5,120,000
General and administrative		2,972,000			4,528,000
Depreciation and amortization		8,263,000			11,211,000
Total expenses		22,862,000			28,639,000

OTHER
Gain on sales		-			1,047,000
Transaction costs		(3,735,000	)		-
Impairment charges		(707,000	)		-
Total other		(4,442,000	)		1,047,000

OPERATING INCOME		3,160,000			5,959,000

NON-OPERATING INCOME AND EXPENSES
Interest expense		(4,237,000	)		(4,706,000	)
Total non-operating income and expenses		(4,237,000	)		(4,706,000	)

NET (LOSS) INCOME		(1,077,000	)		1,253,000

Net loss (income) attributable to noncontrolling interests:
Minority interests in consolidated joint ventures		-			(150,000	)
Limited partners' interest in Operating Partnership		20,000			9,000
Total net loss (income) attributable to noncontrolling interests		20,000			(141,000	)

NET (LOSS) INCOME ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.		(1,057,000	)		1,112,000

Preferred stock dividends		(2,688,000	)		(2,688,000	)

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(3,745,000	)	$	(1,576,000	)

NET LOSS PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND DILUTED):	$	(0.28	)	$	(0.12	)

Weighted average number of common shares - basic and diluted		13,285,000			13,144,000

	Cedar Realty Trust, Inc. Shareholders
																	Cumulative			Accumulated
											Treasury			Additional			distributions			other
	Preferred stock				Common stock						stock,			paid-in			in excess of			comprehensive
	Shares		Amount		Shares			Amount			at cost			capital			net income			(income) loss			Total
Balance, December 31, 2021		6,450,000	$	159,541,000		13,658,000		$	820,000		$	(13,266,000	)	$	881,009,000		$	(582,464,000	)	$	(8,258,000	)	$	437,382,000
Net (loss)		—		—		—			—			—			—			(1,057,000	)		—			(1,057,000	)
Unrealized gain on change in fair value of cash flow hedges		—		—		—			—			—			—			—			8,289,000			8,289,000
Share-based compensation, net		—		—		(21,000	)		(1,000	)		2,459,000			(2,498,000	)		—			—			(40,000	)
Common stock sales, net of issuance expenses		—		—		—			—			—			1,000			—			—			1,000
Preferred stock dividends		—		—		—			—			—			—			(2,688,000	)		—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		—		—			—			—			—			(900,000	)		—			(900,000	)
Reallocation adjustment of limited partners' interest		—		—		—			—			—			(4,000	)		—			—			(4,000	)
Balance, March 31, 2022		6,450,000	$	159,541,000		13,637,000		$	819,000		$	(10,807,000	)	$	878,508,000		$	(587,109,000	)	$	31,000		$	440,983,000

	Noncontrolling Interests
	Minority		Limited
	interest in		partners'
	consolidated		interest in
	joint		Operating						Total
	ventures		Partnership			Total			Equity
Balance, December 31, 2021	$	-	$	2,586,000		$	2,586,000		$	439,968,000
Net (loss)		—		(20,000	)		(20,000	)		(1,077,000	)
Unrealized gain on change in fair value of cash flow hedges		—		49,000			49,000			8,338,000
Share-based compensation, net		—		—			—			(40,000	)
Common stock sales, net of issuance expenses		—		—			—			1,000
Preferred stock dividends		—		—			—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		(5,000	)		(5,000	)		(905,000	)
Reallocation adjustment of limited partners' interest		—		4,000			4,000			—
Balance, March 31, 2022	$	-	$	2,614,000		$	2,614,000		$	443,597,000

	March 31, 2022
Description	Level 1		Level 2		Level 3		Total
Investments related to deferred
compensation liabilities (a)	$	838,000	$	—	$	—	$	838,000
Interest rate swaps assets (a)	$	—	$	1,161,000	$	—	$	1,161,000
Deferred compensation liabilities (b)	$	861,000	$	—	$	—	$	861,000
Interest rate swaps liability (b)	$	—	$	1,128,000	$	—	$	1,128,000


	December 31, 2021
Description	Level 1		Level 2		Level 3		Total
Investments related to deferred
compensation liabilities (a)	$	955,000	$	—	$	—	$	955,000
Deferred compensation liabilities (b)	$	982,000	$	—	$	—	$	982,000
Interest rate swaps liability (b)	$	—	$	8,232,000	$	—	$	8,232,000

(a) Included in other assets and deferred charges, net, in the accompanying consolidated balance sheets.
(b) Included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets.

		March 31, 2022
					Contractual
	Maturity	Balance			interest rates
Description	dates	outstanding			weighted-average
Fixed-rate mortgage
Franklin Village	Jun 2026	$	44,296,000		3.9%
Shops at Suffolk Downs (a)	Jun 2031		15,600,000		3.5%
Trexlertown Plaza (a)	Jun 2031		36,100,000		3.5%
The Point (a)	Jun 2031		29,700,000		3.5%
Christina Crossing (a)	Jun 2031		17,000,000		3.5%
Lawndale Plaza (a)	Jun 2031		15,600,000		3.5%
Senator Square finance lease obligation	Sep 2050		5,587,000		5.3%
			163,883,000		3.6%
Unsecured credit facilities:
Variable-rate:
Revolving credit facility (b)	Aug 2024		70,000,000		2.0%
Fixed-rate (c):
Term loan	Apr 2023		100,000,000		3.3%
Term loan	Sep 2024		75,000,000		3.8%
Term loan	Jul 2025		75,000,000		4.7%
Term loan	Aug 2026		50,000,000		3.3%
			533,883,000		3.5%
Unamortized issuance costs			(2,979,000	)
		$	530,904,000

		Gain recognized in other
		comprehensive (loss) income
		(effective portion)
Designation/		Three months ended March 31,
Cash flow	Derivative	2022			2021
Qualifying	Interest rate swaps	$	6,976,000		$	2,394,000

		(Loss) recognized in other
		comprehensive (loss) income
		reclassified into earnings (effective portion)
		Three months ended March 31,
	Classification	2022			2021
	Continuing Operations	$	(1,362,000	)	$	(1,803,000	)

	Series B		Series C
	Preferred Stock		Preferred Stock
Par value	$	0.01	$	0.01
Liquidation value	$	25.00	$	25.00

	March 31, 2022				December 31, 2021
	Series B		Series C		Series B		Series C
	Preferred Stock		Preferred Stock		Preferred Stock		Preferred Stock
Shares authorized		1,450,000		6,450,000		1,450,000		6,450,000
Shares issued and outstanding		1,450,000		5,000,000		1,450,000		5,000,000
Balance	$	34,767,000	$	124,774,000	$	34,767,000	$	124,774,000

							Change
	2022			2021			Dollars			Percent
Revenues	$	30,464,000		$	33,551,000		$	(3,087,000	)	-9.2%
Property operating expenses		(11,627,000	)		(12,900,000	)		1,273,000		-9.9%
Property operating income		18,837,000			20,651,000			(1,814,000	)
General and administrative		(2,972,000	)		(4,528,000	)		1,556,000		-34.4%
Depreciation and amortization		(8,263,000	)		(11,211,000	)		2,948,000		-26.3%
Gain on sales		—			1,047,000			(1,047,000	)	n/a
Impairment charges		(707,000	)		—			(707,000	)	n/a
Transaction costs		(3,735,000	)		—			(3,735,000	)	n/a
Interest expense		(4,237,000	)		(4,706,000	)		469,000		-10.0%
Net (loss) income		(1,077,000	)		1,253,000			(2,330,000	)
Net loss (income) attributable to noncontrolling interests		20,000			(141,000	)		161,000
Net (loss) income attributable to Cedar Realty Trust, Inc.	$	(1,057,000	)	$	1,112,000		$	(2,169,000	)


												Tenant
	Leases				New rent		Prior rent		Cash basis			improvements
	signed		GLA		per sq.ft.		per sq.ft.		% change			per sq.ft.
Renewals		24		142,200		14.49		13.68		5.9	%		0.29
New Leases - Comparable		10		75,600		21.34		13.74		55.3	%		99.38	(a)
New Leases - Non-Comparable (b)		2		3,400		34.60	n/a		n/a				212.87	(a)
Total (c)		36		221,200		17.13	n/a		n/a				37.38

	Mortgage Loan		Finance Lease		Revolving			Term
Year	Payable		Obligation		Credit Facility			Loans		Total
2022	$	841,000	$	28,000	$	-		$	-	$	869,000
2023		1,160,000		39,000		-			100,000,000		101,199,000
2024		1,206,000		41,000		70,000,000	(a)		75,000,000		146,247,000
2025		1,253,000		44,000		-			75,000,000		76,297,000
2026		40,922,000		48,000		-			50,000,000		90,970,000
Thereafter		112,914,000		5,387,000		-			-		118,301,000
	$	158,296,000	$	5,587,000	$	70,000,000		$	300,000,000	$	533,883,000

By:	/s/ BRUCE J. SCHANZER	By:	/s/ JENNIFER BITTERMAN
	Bruce J. Schanzer		Jennifer Bitterman
	President and Chief Executive Officer (Principal Executive Officer)		Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)


	May 5, 2022

	Three months ended March 31,
	2022		2021
Base rents	$	22,116,000	$	24,015,000
Expense recoveries		7,546,000		8,348,000
Percentage rent		175,000		565,000
Straight-line rents		101,000		131,000
Amortization of intangible lease liabilities, net		269,000		277,000
Total rents	$	30,207,000	$	33,336,000

	Three months ended March 31,
	2022			2021
Expense relating to share/unit grants	$	584,000		$	929,000
Amounts capitalized		(42,000	)		(49,000	)
Total charged to operations	$	542,000		$	880,000

				Weighted average
	Shares			grant date value
Unvested shares/units, December 31, 2021		492,000		$	23.47
Restricted share grants		4,000			25.11
Vested during period		(33,000	)		24.34
Unvested shares/units, March 31, 2022		463,000		$	23.42

	Three months ended March 31,
	2022			2021
Operating income	$	3,160,000		$	5,959,000
Add (deduct):
General and administrative		2,972,000			4,528,000
Gain on sales		—			(1,047,000	)
Transaction costs		3,735,000			—
Impairment charges		707,000			—
Depreciation and amortization		8,263,000			11,211,000
Straight-line rents		(101,000	)		(131,000	)
Amortization of intangible lease liabilities		(269,000	)		(277,000	)
Other adjustments		224,000			(22,000	)
NOI related to properties not defined as same-property		(1,799,000	)		(3,604,000	)
Same-property NOI	$	16,892,000		$	16,617,000

Number of same properties		45			45
Same-property occupancy, end of period		91.5	%		89.4	%
Same-property leased, end of period		92.7	%		90.1	%
Same-property average base rent, end of period	$	13.58		$	13.53

	Three months ended March 31,
	2022			2021
Cash flows provided by (used in):
Operating activities	$	8,705,000		$	9,542,000
Investing activities	$	(9,768,000	)	$	(5,701,000	)
Financing activities	$	117,000		$	(2,340,000	)