8-K
CEDAR REALTY TRUST, INC. (CDR-PC)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 10, 2020
CEDAR REALTY TRUST, INC.
(Exact Name of Registrant as Specified in its Charter)
Maryland
(State or Other Jurisdiction of Incorporation)
| 001-31817 | 42-1241468 |
|---|---|
| (Commission<br><br><br>File Number) | (IRS Employer<br><br><br>Identification No.) |
44 South Bayles Avenue
Port Washington, New York 11050
(Address of Principal Executive Offices) (Zip Code)
(516) 767-6492
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
| 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 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter) Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Items 2.02 and 7.01.Results of Operations and Financial Condition, and Regulation FD.
On August 10, 2020, Cedar Realty Trust, Inc. issued a press release announcing its comparative financial results as well as certain supplemental financial information for the three months ended June 30, 2020. The press release and the supplemental financial information are furnished as Exhibit 99.1 and are incorporated herein by reference.
The information in this Current Report on Form 8-K is furnished under Item 2.02 – “Results of Operations and Financial Condition” and Item 7.01 – “Regulation FD Disclosure”. This information, including the exhibits attached hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act except as expressly set forth by specific reference in any such filing.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | Cedar Realty Trust, Inc. Supplemental Financial Information at June 30, 2020 (including press release dated August 10, 2020). |
|---|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
CEDAR REALTY TRUST, INC.
/s/ PHILIP R. MAYS
Philip R. Mays
Executive Vice President, Chief Financial Officer and Treasurer
(Principal financial officer)
Dated: August 10, 2020
cdr-ex991_6.htm
CEDAR REALTY TRUST, INC.
Supplemental Financial Information
June 30, 2020
(unaudited)
TABLE OF CONTENTS
| Earnings Press Release | 4 - 7 |
|---|---|
| Financial Information | |
| Condensed Consolidated Balance Sheets | 8 |
| Condensed Consolidated Statements of Operations | 9 |
| Supporting Schedules to Consolidated Statements | 10 |
| Funds From Operations and Additional Disclosures | 11 |
| EBITDA for Real Estate and Additional Disclosures | 12 |
| Summary of Outstanding Debt and Maturities | 13 |
| Portfolio Information | |
| Real Estate Summary | 14 - 16 |
| Tenant Categories | 17 |
| Tenant Concentration | 18 |
| Lease Expirations | 19 |
| Leasing Activity | 20 |
| Same-Property Net Operating Income | 21 |
| Summary of Real Estate Held for Sale | 22 |
| Non-GAAP Financial Disclosures | 23 |
Forward-Looking Statements
The information contained in this Supplemental Financial Information is unaudited and does not purport to disclose all items required by accounting principles generally accepted in the United States (“GAAP”). In addition, certain statements made or incorporated by reference herein 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 REPORTS
SECOND QUARTER 2020 RESULTS AND COVID-19 UPDATE
Port Washington, New York – August 10, 2020 – Cedar Realty Trust, Inc. (NYSE:CDR – the “Company”) today reported results for the second quarter 2020. Net loss attributable to common shareholders was $(0.10) per diluted share compared to net income of $0.03 per diluted share for the comparable 2019 period. Other highlights include:
Quarter Highlights
| • | NAREIT-defined funds from operations (FFO) and Operating funds from operations (Operating FFO) of $0.06 per diluted share |
|---|---|
| • | Same-property net operating income (NOI) decreased 14.6% compared to the same period in 2019 |
| --- | --- |
| • | Collected 77%, signed deferral agreements for 6%, and in active deferral negotiations for an additional 4% of base rents and monthly charges |
| --- | --- |
| • | Recorded $4.6 million of uncollectible revenue/bad debt expense and wrote-off $1.2 million of straight line rent receivables |
| --- | --- |
| • | Signed 21 new and renewal leases for 182,300 square feet in the quarter |
| --- | --- |
| • | Same-property portfolio 91.5% leased at quarter-end |
| --- | --- |
Subsequent Events
| • | Collected 88% of July base rents and monthly charges |
|---|---|
| • | On July 9, 2020, sold Metro Square for $4.3 million |
| --- | --- |
| • | On July 23, 2020, entered into lease with the Government of the District of Columbia for approximately 240,000 square feet of office space in a new 6-story building to be constructed at Senator Square |
| --- | --- |
| • | On August 7, 2020, repaid $70 million of borrowings under revolving credit facility |
| --- | --- |
COVID-19 Update
The Company took various actions as a result of COVID-19, which were fully detailed in the Company’s First Quarter 2020 Earnings Press Release on May 14, 2020. Deferred and waived base rents and monthly charges are as follows (dollars in millions):
| Range | |||||
|---|---|---|---|---|---|
| Quarter ended<br><br><br>June 30, 2020 | Total | Deferred / Waived Months | Payback<br><br><br>Months | Payback<br><br><br>Begins | |
| Deferred Rent | $ 2.0 | $ 2.5 | 1 to 10 | 3 to 18 | July 2020 to March 2021 |
| (Wtd Avg 4.6) | (Wtd Avg 9.9) | (Wtd Avg Dec 2020) | |||
| Waived Rent | $ 0.4 | $ 0.5 | 1 to 9 | N/A | N/A |
| (Wtd Avg 3.2) |
Additionally, the following tenants recently filed for bankruptcy: 24 Hour Fitness, GNC (6 locations), Pier I, Gordmans (2 locations), a Pizza Hut franchisee, and Tuesday Morning. These tenants had aggregate base rent and monthly charges of approximately $0.6 million for the quarter ended June 30, 2020.
“We continue to be pleased with the strength of our grocer-anchored shopping center portfolio with 77% collections for the quarter and 88% collections for July,” commented Bruce Schanzer, President and CEO. “In addition to managing our portfolio through the challenges presented by COVID, we are excited about the recent signing of a lease agreement with the Government of the District of Columbia for the construction of a new 240,000 square feet office building at Senator Square.”
Financial Results
Net loss attributable to common shareholders for the second quarter of 2020 was $(8.8) million or $(0.10) per diluted share, compared to net income of $2.7 million or $0.03 per diluted share for the same period in 2019. The principal difference in the comparative three-month results were the effects of COVID-19 in 2020, and a gain on a property sold in 2019. Net loss attributable to common shareholders for the six-month period ending June 30, 2020 was $(13.7) million or $(0.16) per dilutive share, compared to net income of $2.9 million or $0.03 per dilutive share for the same period of 2019. The principal differences in the comparative six-month results were lease termination income, an impairment charge on a property held for sale, the acceleration of depreciation relating to the demolition of certain existing buildings at redevelopment properties, and the effects of COVID-19 in 2020, and a gain on properties sold in 2019.
NAREIT-defined FFO and Operating FFO for the second quarter of 2020 was $5.7 million or $0.06 per diluted share, compared to $10.2 million or $0.11 per diluted share for the same period in 2019. NAREIT-defined FFO for the six-month period ended June 30, 2020 was $22.0 million or $0.24 per dilutive share, compared to $20.4 million or $0.22 per diluted share for the same period of 2019. Operating FFO for the six-month period ended June 30, 2020 was $22.5 million or $0.25 per diluted share, compared to $20.4 million or $0.22 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 the effect of COVID-19. The principal differences between the comparative six-month Operating FFO results were the effects of COVID-19 and lease termination income in 2020.
Portfolio Update
During the second quarter of 2020, the Company signed 21 leases for 182,300 square feet. On a comparable space basis, the Company leased 182,300 square feet at a negative lease spread of (3.9)% on a cash basis (new leases decreased 30.4% and renewals increased 2.6%). During the six-month period ended June 30, 2020, the Company signed 51 leases for 491,800 square feet. On a comparable space basis, the Company leased 490,200 square feet at a negative lease spread of (0.4)% on a cash basis (new leases decreased 15.5% and renewals increased 1.4%).
Same-property NOI decreased 14.6% excluding redevelopment properties and decreased 19.3% including redevelopment properties compared to the same period in 2019. Same-property NOI was negatively impacted by COVID-19.
The Company’s same-property portfolio was 91.5% leased at June 30, 2020, compared to 93.0% at December 31, 2019 and 91.6% at June 30, 2019. The Company’s total portfolio, excluding properties held for sale, was 90.0% leased at June 30, 2020, compared to 93.2% at December 31, 2019 and 91.5% at June 30, 2019. The sequential decrease in total leased portfolio percentage was driven by 24 Hour Fitness at Carman’s Plaza and A.C. Moore at The Point and New London vacating in the second quarter of 2020.
Balance Sheet
On August 4, 2020 the Company amended its unsecured revolving credit facility and term loans. The primary changes resulting from the amendments are the financial ratios and borrowing base are now computed using the trailing four quarters as opposed to the current quarter annualized and interest rate swaps that are a hedge of existing debt are now excluded from the definition of debt. As of today, the Company has $4.5 million of cash and $74.5 million available under its revolving credit facility and is in compliance with all financial covenants.
As of June 30, 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”. On July 9, 2020, the Company sold Metro Square.
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 six months ended June 30, 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 June 30, 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, August 10, 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 August 10, 2020, until midnight (ET) on August 24, 2020. The replay dial-in numbers are (844) 512-2921 or (1) (412) 317-6671 for international callers. Please use passcode 13706825 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.
Contact Information:
Cedar Realty Trust, Inc.
Philip R. Mays
Executive Vice President, Chief Financial Officer and Treasurer
(516) 944-4572
CEDAR REALTY TRUST, INC.
Condensed Consolidated Balance Sheets
| June 30, | December 31, | |||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| ASSETS | ||||||
| Real estate, at cost | $ | 1,518,008,000 | $ | 1,515,206,000 | ||
| Less accumulated depreciation | (411,041,000 | ) | (389,861,000 | ) | ||
| Real estate, net | 1,106,967,000 | 1,125,345,000 | ||||
| Real estate held for sale | 16,980,000 | 13,230,000 | ||||
| Cash and cash equivalents | 68,233,000 | 2,747,000 | ||||
| Receivables | 22,990,000 | 22,164,000 | ||||
| Other assets and deferred charges, net | 38,928,000 | 42,139,000 | ||||
| TOTAL ASSETS | $ | 1,254,098,000 | $ | 1,205,625,000 | ||
| LIABILITIES AND EQUITY | ||||||
| Liabilities: | ||||||
| Mortgage loan payable | $ | 45,882,000 | $ | 46,370,000 | ||
| Finance lease obligation | 5,353,000 | 5,364,000 | ||||
| Unsecured revolving credit facility | 176,900,000 | 106,000,000 | ||||
| Unsecured term loans | 473,195,000 | 472,841,000 | ||||
| Accounts payable and accrued liabilities | 61,664,000 | 50,502,000 | ||||
| Unamortized intangible lease liabilities | 9,602,000 | 10,473,000 | ||||
| Total liabilities | 772,596,000 | 691,550,000 | ||||
| Equity: | ||||||
| Preferred stock | 159,541,000 | 159,541,000 | ||||
| Common stock and other shareholders' equity | 318,339,000 | 351,020,000 | ||||
| Noncontrolling interests | 3,622,000 | 3,514,000 | ||||
| Total equity | 481,502,000 | 514,075,000 | ||||
| TOTAL LIABILITIES AND EQUITY | $ | 1,254,098,000 | $ | 1,205,625,000 |
CEDAR REALTY TRUST, INC.
Condensed Consolidated Statements of Operations
| Three months ended June 30, | Six months ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||||||
| PROPERTY REVENUES | ||||||||||||
| Rental revenues | $ | 28,461,000 | $ | 35,309,000 | $ | 63,576,000 | $ | 71,901,000 | ||||
| Other | 159,000 | 351,000 | 7,529,000 | 642,000 | ||||||||
| Total property revenues | 28,620,000 | 35,660,000 | 71,105,000 | 72,543,000 | ||||||||
| PROPERTY OPERATING EXPENSES | ||||||||||||
| Operating, maintenance and management | 5,508,000 | 6,162,000 | 13,229,000 | 14,129,000 | ||||||||
| Real estate and other property-related taxes | 4,978,000 | 5,087,000 | 10,100,000 | 10,297,000 | ||||||||
| Total property operating expenses | 10,486,000 | 11,249,000 | 23,329,000 | 24,426,000 | ||||||||
| PROPERTY OPERATING INCOME | 18,134,000 | 24,411,000 | 47,776,000 | 48,117,000 | ||||||||
| OTHER EXPENSES AND INCOME | ||||||||||||
| General and administrative | 3,906,000 | 5,418,000 | 8,908,000 | 10,216,000 | ||||||||
| Depreciation and amortization | 14,426,000 | 10,346,000 | 28,173,000 | 20,475,000 | ||||||||
| Gain on sales | - | (2,841,000 | ) | - | (2,942,000 | ) | ||||||
| Impairment charges | 133,000 | - | 7,607,000 | - | ||||||||
| Total other expenses and income | 18,465,000 | 12,923,000 | 44,688,000 | 27,749,000 | ||||||||
| OPERATING INCOME | (331,000 | ) | 11,488,000 | 3,088,000 | 20,368,000 | |||||||
| NON-OPERATING INCOME AND EXPENSES | ||||||||||||
| Interest expense | (5,678,000 | ) | (5,944,000 | ) | (11,195,000 | ) | (11,835,000 | ) | ||||
| Total non-operating income and expense | (5,678,000 | ) | (5,944,000 | ) | (11,195,000 | ) | (11,835,000 | ) | ||||
| NET (LOSS) INCOME | (6,009,000 | ) | 5,544,000 | (8,107,000 | ) | 8,533,000 | ||||||
| Attributable to noncontrolling interests | (88,000 | ) | (161,000 | ) | (236,000 | ) | (268,000 | ) | ||||
| NET (LOSS) INCOME ATTRIBUTABLE TO CEDAR REALTY TRUST, INC. | (6,097,000 | ) | 5,383,000 | (8,343,000 | ) | 8,265,000 | ||||||
| Preferred stock dividends | (2,688,000 | ) | (2,688,000 | ) | (5,376,000 | ) | (5,376,000 | ) | ||||
| NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | (8,785,000 | ) | $ | 2,695,000 | $ | (13,719,000 | ) | $ | 2,889,000 | ||
| NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND DILUTED): | $ | (0.10 | ) | $ | 0.03 | $ | (0.16 | ) | $ | 0.03 | ||
| Weighted average number of common shares - basic and diluted | 86,509,000 | 86,260,000 | 86,439,000 | 86,420,000 |
CEDAR REALTY TRUST, INC.
Supporting Schedules to Consolidated Statements
| Balance Sheets | June 30, | December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||||||
| Construction in process (included in real estate, at cost) | $ | 35,044,000 | $ | 26,624,000 | ||||||
| Receivables | ||||||||||
| Rents and other tenant receivables, net (a) | $ | 7,216,000 | $ | 5,061,000 | ||||||
| Mortgage note receivable | 3,500,000 | 3,500,000 | ||||||||
| Straight-line rents | 12,274,000 | 13,603,000 | ||||||||
| $ | 22,990,000 | $ | 22,164,000 | |||||||
| Other assets and deferred charges, net | ||||||||||
| Lease origination costs | $ | 17,958,000 | $ | 19,947,000 | ||||||
| Right-of-use assets | 14,033,000 | 13,638,000 | ||||||||
| Prepaid expenses | 4,158,000 | 6,048,000 | ||||||||
| Revolving credit facility issuance costs | 715,000 | 1,021,000 | ||||||||
| Other | 2,064,000 | 1,485,000 | ||||||||
| $ | 38,928,000 | $ | 42,139,000 | |||||||
| Accounts payable and accrued liabilities | ||||||||||
| Accounts payable and accrued liabilities | $ | 24,784,000 | $ | 29,544,000 | ||||||
| Right-of-use liabilities | 14,228,000 | 13,778,000 | ||||||||
| Interest rate swap liabilities | 22,652,000 | 7,180,000 | ||||||||
| $ | 61,664,000 | $ | 50,502,000 | |||||||
| Statements of Operations | Three months ended June 30, | Six months ended June 30, | ||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||
| Rental revenues | ||||||||||
| Base rents | $ | 22,781,000 | $ | 26,352,000 | $ | 48,543,000 | $ | 52,753,000 | ||
| Expense recoveries | 6,328,000 | 7,950,000 | 14,883,000 | 17,144,000 | ||||||
| Percentage rent | 33,000 | 265,000 | 329,000 | 447,000 | ||||||
| Straight-line rents | (988,000 | ) | 111,000 | (945,000 | ) | 335,000 | ||||
| Amortization of intangible lease liabilities, net | 307,000 | 631,000 | 766,000 | 1,222,000 | ||||||
| $ | 28,461,000 | $ | 35,309,000 | $ | 63,576,000 | $ | 71,901,000 | |||
| (a) | Includes $1.8 million of net receivables related to deferred rent as a result of COVID-19. | |||||||||
| --- | --- |
CEDAR REALTY TRUST, INC.
Funds From Operations and Additional Disclosures
| Three months ended June 30, | Six months ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Net (loss) income attributable to common shareholders | $ | (8,785,000 | ) | $ | 2,695,000 | $ | (13,719,000 | ) | $ | 2,889,000 | ||
| Real estate depreciation and amortization | 14,400,000 | 10,300,000 | 28,105,000 | 20,383,000 | ||||||||
| Limited partners' interest | (52,000 | ) | 17,000 | (80,000 | ) | 19,000 | ||||||
| Gain on sales | - | (2,841,000 | ) | - | (2,942,000 | ) | ||||||
| Impairment charges | 133,000 | - | 7,607,000 | - | ||||||||
| Consolidated minority interests: | ||||||||||||
| Share of income | 140,000 | 144,000 | 316,000 | 249,000 | ||||||||
| Share of FFO | (118,000 | ) | (107,000 | ) | (261,000 | ) | (186,000 | ) | ||||
| Funds From Operations ("FFO") applicable to diluted common shares | 5,718,000 | 10,208,000 | 21,968,000 | 20,412,000 | ||||||||
| Adjustments for items affecting comparability: | ||||||||||||
| Redevelopment costs (a) | - | - | 483,000 | - | ||||||||
| Operating Funds From Operations ("Operating FFO") applicable to diluted common shares | $ | 5,718,000 | $ | 10,208,000 | $ | 22,451,000 | $ | 20,412,000 | ||||
| FFO per diluted common share: | $ | 0.06 | $ | 0.11 | $ | 0.24 | $ | 0.22 | ||||
| Operating FFO per diluted common share: | $ | 0.06 | $ | 0.11 | $ | 0.25 | $ | 0.22 | ||||
| Weighted average number of diluted common shares: | ||||||||||||
| Common shares and equivalents | 90,829,000 | 90,526,000 | 90,798,000 | 90,694,000 | ||||||||
| OP Units | 537,000 | 553,000 | 537,000 | 553,000 | ||||||||
| 91,366,000 | 91,079,000 | 91,335,000 | 91,247,000 | |||||||||
| Additional Disclosures (b): | ||||||||||||
| Straight-line rents | $ | (988,000 | ) | $ | 111,000 | $ | (945,000 | ) | $ | 335,000 | ||
| Amortization of intangible lease liabilities | 307,000 | 631,000 | 766,000 | 1,222,000 | ||||||||
| Non-real estate amortization | 334,000 | 367,000 | 686,000 | 744,000 | ||||||||
| Share-based compensation, net | 972,000 | 1,028,000 | 1,986,000 | 2,043,000 | ||||||||
| Maintenance capital expenditures (c) | 1,820,000 | 2,739,000 | 3,528,000 | 5,565,000 | ||||||||
| Lease related expenditures (d) | 2,242,000 | 922,000 | 4,550,000 | 3,225,000 | ||||||||
| Development and redevelopment capital expenditures | 5,359,000 | 5,459,000 | 11,125,000 | 9,530,000 | ||||||||
| Capitalized interest and financing costs | 631,000 | 444,000 | 1,224,000 | 702,000 | ||||||||
| (a) | Includes redevelopment project costs expensed pursuant to GAAP such as certain demolition and lease termination costs. | |||||||||||
| --- | --- | |||||||||||
| (b) | These additional disclosures are presented to assist with understanding the Company’s real estate operations and capital requirements. These amounts should not be considered independently or as a substitute for the Company’s consolidated financial statements reported under GAAP. | |||||||||||
| --- | --- | |||||||||||
| (c) | Consists of payments for building and site improvements. | |||||||||||
| --- | --- | |||||||||||
| (d) | Consists of payments for tenant improvements and leasing commissions. | |||||||||||
| --- | --- |
CEDAR REALTY TRUST, INC.
EBITDA for Real Estate (“EBITDAre”) and Additional Disclosures
| Three months ended June 30, | Six months ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Net (loss) income | $ | (6,009,000 | ) | $ | 5,544,000 | $ | (8,107,000 | ) | $ | 8,533,000 | ||
| Interest expense | 5,678,000 | 5,944,000 | 11,195,000 | 11,835,000 | ||||||||
| Depreciation and amortization | 14,426,000 | 10,346,000 | 28,173,000 | 20,475,000 | ||||||||
| Gain on sales | - | (2,841,000 | ) | - | (2,942,000 | ) | ||||||
| Impairment charges | 133,000 | - | 7,607,000 | - | ||||||||
| EBITDAre | 14,228,000 | 18,993,000 | 38,868,000 | 37,901,000 | ||||||||
| Adjustments for items affecting comparability: | ||||||||||||
| Redevelopment costs (a) | - | - | 483,000 | - | ||||||||
| Adjusted EBITDAre | $ | 14,228,000 | $ | 18,993,000 | $ | 39,351,000 | $ | 37,901,000 | ||||
| Net debt | ||||||||||||
| Debt, excluding issuance costs | $ | 698,067,000 | $ | 621,181,000 | $ | 698,067,000 | $ | 621,181,000 | ||||
| Finance lease obligation | 5,649,000 | 5,681,000 | 5,649,000 | 5,681,000 | ||||||||
| Unrestricted cash and cash equivalents | (68,233,000 | ) | (2,081,000 | ) | (68,233,000 | ) | (2,081,000 | ) | ||||
| $ | 635,483,000 | $ | 624,781,000 | $ | 635,483,000 | $ | 624,781,000 | |||||
| Fixed charges (b) | ||||||||||||
| Interest expense | $ | 5,966,000 | $ | 6,054,000 | $ | 11,731,000 | $ | 11,858,000 | ||||
| Preferred stock dividends | 2,688,000 | 2,688,000 | 5,376,000 | 5,376,000 | ||||||||
| Scheduled mortgage repayments | 265,000 | 255,000 | 528,000 | 508,000 | ||||||||
| $ | 8,919,000 | $ | 8,997,000 | $ | 17,635,000 | $ | 17,742,000 | |||||
| Debt and Coverage Ratios (c) | ||||||||||||
| Net debt to Adjusted EBITDAre | 10.8 | x | 8.3 | x | 9.7 | x | 8.3 | x | ||||
| Interest coverage ratio (based on Adjusted EBITDAre) | 2.5 | x | 3.1 | x | 2.8 | x | 3.2 | x | ||||
| Fixed charge coverage ratio (based on Adjusted EBITDAre) | 1.7 | x | 2.1 | x | 1.9 | x | 2.1 | x | ||||
| (a) | Includes redevelopment project costs expensed pursuant to GAAP such as certain demolition and lease termination costs. | |||||||||||
| --- | --- | |||||||||||
| (b) | Includes properties "held for sale". | |||||||||||
| --- | --- | |||||||||||
| (c) | For the purposes of these computations, these ratios have been adjusted to include the annualized results of properties acquired, and to exclude, where applicable, (i) the results related to properties sold, and (ii) lease termination income. | |||||||||||
| --- | --- |
CEDAR REALTY TRUST, INC.
Summary of Outstanding Debt and Maturities
As of June 30, 2020
| Maturity | Interest | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dates | Rates | Amounts | |||||||||
| Secured fixed-rate debt: | |||||||||||
| Franklin Village Plaza mortgage | Jun 2026 | 3.9% | $ | 46,167,000 | |||||||
| Senator Square finance lease obligation (a) | Sep 2050 | 5.3% | 5,649,000 | ||||||||
| Unsecured debt (b): | |||||||||||
| Variable-rate (c): | |||||||||||
| Revolving credit facility (d) | Sep 2021 | 2.4% | 176,900,000 | ||||||||
| Term loan | Sep 2022 | 2.6% | 50,000,000 | ||||||||
| Fixed-rate (e): | |||||||||||
| Term loan | Feb 2021 | 3.7% | 75,000,000 | ||||||||
| Term loan | Feb 2022 | 3.1% | 50,000,000 | ||||||||
| Term loan | Sep 2022 | 3.3% | 50,000,000 | ||||||||
| Term loan | Apr 2023 | 3.3% | 100,000,000 | ||||||||
| Term loan | Sep 2024 | 3.8% | 75,000,000 | ||||||||
| Term loan | Jul 2025 | 4.7% | 75,000,000 | ||||||||
| Total unsecured debt | weighted average | 3.3% | 651,900,000 | ||||||||
| Total debt | weighted average | 3.3% | 703,716,000 | ||||||||
| Unamortized mortgage, finance lease and term loan issuance costs | (2,386,000 | ) | |||||||||
| Total debt | $ | 701,330,000 | |||||||||
| Fixed to variable rate debt ratio: | |||||||||||
| Fixed-rate debt | 67.8% | $ | 476,816,000 | ||||||||
| Variable-rate debt | 32.2% | 226,900,000 | |||||||||
| 100.0% | $ | 703,716,000 | |||||||||
| Mortgage Loan | Finance Lease | Revolving | Term | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Year | Payable | Obligation | Credit Facility | Loans | Amounts | ||||||
| 2020 | $ | 522,000 | $ | 17,000 | $ | - | $ | - | $ | 539,000 | |
| 2021 | 1,074,000 | 35,000 | 176,900,000 | (d) | 75,000,000 | 253,009,000 | |||||
| 2022 | 1,116,000 | 37,000 | - | 150,000,000 | 151,153,000 | ||||||
| 2023 | 1,160,000 | 39,000 | - | 100,000,000 | 101,199,000 | ||||||
| 2024 | 1,206,000 | 41,000 | - | 75,000,000 | 76,247,000 | ||||||
| 2025 | 1,253,000 | 44,000 | - | 75,000,000 | 76,297,000 | ||||||
| 2026 | 39,836,000 | 48,000 | - | - | 39,884,000 | ||||||
| Thereafter | - | 5,388,000 | - | - | 5,388,000 | ||||||
| $ | 46,167,000 | $ | 5,649,000 | $ | 176,900,000 | $ | 475,000,000 | $ | 703,716,000 | ||
| (a) | Maturity date reflects the first date the Company has the right to acquire the underlying land on the finance lease obligation. | ||||||||||
| --- | --- | ||||||||||
| (b) | During the third quarter of 2020, the weighted average interest rate for the Company’s unsecured credit facilities will increase 15 bps as a result of an increase in the Company’s leverage ratio. | ||||||||||
| --- | --- | ||||||||||
| (c) | For variable-rate debt, rate in effect as of June 30, 2020. | ||||||||||
| --- | --- | ||||||||||
| (d) | Subject to a one-year extension at the Company's option. | ||||||||||
| --- | --- | ||||||||||
| (e) | The interest rates on these term loans consist of LIBOR plus a credit spread based on the Company's leverage ratio, for which the Company has interest rate swaps which convert the LIBOR rates to fixed rates. Accordingly, these term loans are presented as fixed-rate debt. | ||||||||||
| --- | --- |
CEDAR REALTY TRUST, INC.
Real Estate Summary
As of June 30, 2020
| Average | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Percent | base rent per | Selected | ||||||||
| Property Description | acquired | GLA | occupied | leased sq. ft. | Grocer Anchor | Other Anchors | |||||
| Connecticut | |||||||||||
| Bethel Shopping Center | 2013 | 101,105 | 95.1 | % | $ | 23.41 | Big Y | Dollar Tree | |||
| Brickyard Plaza | 2004 | 227,598 | 99.2 | % | 8.77 | Home Depot | |||||
| Kohl's | |||||||||||
| Michaels | |||||||||||
| PetSmart | |||||||||||
| Groton Shopping Center | 2007 | 130,264 | 100.0 | % | 12.45 | Aldi | TJ Maxx | ||||
| Goodwill | |||||||||||
| Planet Fitness | |||||||||||
| Dollar Tree | |||||||||||
| Pet Supplies Plus | |||||||||||
| Jordan Lane | 2005 | 177,504 | 73.1 | % | 11.96 | Stop & Shop | Crunch Fitness | ||||
| Dollar Tree | |||||||||||
| New London Mall | 2009 | 259,566 | 88.0 | % | 12.99 | Shop Rite | Marshalls | ||||
| Home Goods | |||||||||||
| PetSmart | |||||||||||
| Oakland Commons | 2007 | 90,100 | 100.0 | % | 6.37 | Walmart | Bristol Ten Pin | ||||
| Southington Center | 2003 | 155,842 | 98.5 | % | 7.85 | Walmart | NAMCO | ||||
| Southington Wine & Spirit | |||||||||||
| Total Connecticut | 1,141,979 | 92.3 | % | 11.53 | |||||||
| Delaware | |||||||||||
| Christina Crossing | 2017 | 119,446 | 90.7 | % | 19.56 | Shop Rite | |||||
| Maryland / Washington, D.C. | |||||||||||
| East River Park | 2015 | 150,038 | 97.4 | % | 20.16 | Safeway | District of Columbia | ||||
| CVS | |||||||||||
| Oakland Mills | 2005 | 59,308 | 100.0 | % | 12.46 | LA Mart | |||||
| Patuxent Crossing (f/k/a San Souci Plaza) (a) | 2009 | 264,134 | 82.3 | % | 11.77 | McKay's Market and Café | Marshalls | ||||
| Home Goods | |||||||||||
| World Gym | |||||||||||
| JOANN Fabrics | |||||||||||
| Dollar Tree | |||||||||||
| Senator Square | 2018 | 61,691 | 100.0 | % | 21.46 | Unity Health Care | |||||
| Dollar Tree | |||||||||||
| Shoppes at Arts District | 2016 | 35,676 | 100.0 | % | 37.04 | Yes! Organic Market | Busboys and Poets | ||||
| Valley Plaza | 2003 | 190,939 | 49.8 | % | 9.79 | Ollie's Bargain Outlet | |||||
| Tractor Supply | |||||||||||
| Yorktowne Plaza | 2007 | 136,197 | 70.5 | % | 12.46 | Food Lion | Dollar Tree | ||||
| Total Maryland / Washington, D.C. | 897,983 | 79.2 | % | 15.49 | |||||||
| Massachusetts | |||||||||||
| Fieldstone Marketplace | 2005/2012 | 150,123 | 84.6 | % | 12.15 | Shaw's | Work Out World | ||||
| Dollar Tree | |||||||||||
| Family Dollar | |||||||||||
| Franklin Village Plaza | 2004/2012 | 303,524 | 89.1 | % | 20.95 | Stop & Shop | Marshalls | ||||
| NRG Labs | |||||||||||
| Kings Plaza | 2007 | 168,243 | 82.2 | % | 8.65 | Fun Z Trampoline Park | |||||
| Ocean State Job Lot | |||||||||||
| Savers | |||||||||||
| Dollar General | |||||||||||
| Norwood Shopping Center | 2006 | 97,756 | 94.7 | % | 10.12 | Big Y | Planet Fitness | ||||
| Dollar Tree | |||||||||||
| The Shops at Suffolk Downs | 2005 | 121,187 | 100.0 | % | 14.15 | Stop & Shop | Dollar Tree |
CEDAR REALTY TRUST, INC.
Real Estate Summary (Continued)
As of June 30, 2020
| Average | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Percent | base rent per | Selected | ||||||||
| Property Description | acquired | GLA | occupied | leased sq. ft. | Grocer Anchor | Other Anchors | |||||
| Massachusetts (continued) | |||||||||||
| Timpany Plaza | 2007 | 182,799 | 67.4 | % | 10.15 | Big Lots | |||||
| Gardner Theater | |||||||||||
| Tractor Supply | |||||||||||
| Dollar Tree | |||||||||||
| Webster Commons | 2007 | 98,984 | 96.7 | % | 11.84 | Big Lots | |||||
| Planet Fitness | |||||||||||
| CVS | |||||||||||
| Aubuchon Hardware | |||||||||||
| Total Massachusetts | 1,122,616 | 86.3 | % | 13.88 | |||||||
| New Jersey | |||||||||||
| Pine Grove Plaza | 2003 | 86,089 | 80.9 | % | 11.40 | Gordmans | |||||
| Dollar Tree | |||||||||||
| The Shops at Bloomfield Station | 2016 | 63,844 | 84.1 | % | 19.21 | Super Foodtown | |||||
| Washington Center Shoppes | 2001 | 157,300 | 93.4 | % | 11.34 | Acme Markets | Planet Fitness | ||||
| Total New Jersey | 307,233 | 88.0 | % | 12.92 | |||||||
| New York | |||||||||||
| Carman's Plaza | 2007 | 195,485 | 58.9 | % | 21.72 | Key Foods | Department of Motor Vehicle | ||||
| Popcorn Beauty | |||||||||||
| Dollar Tree | |||||||||||
| Pennsylvania | |||||||||||
| Academy Plaza | 2001 | 137,415 | 91.9 | % | 15.48 | Acme Markets | Rite Aid | ||||
| Camp Hill | 2002 | 430,198 | 99.7 | % | 15.29 | Giant Foods | Boscov's | ||||
| LA Fitness | |||||||||||
| Barnes & Noble | |||||||||||
| Staples | |||||||||||
| Colonial Commons | 2011 | 410,432 | 97.2 | % | 13.06 | Giant Foods (b) | Dick's Sporting Goods | ||||
| Home Goods | |||||||||||
| Ross Dress For Less | |||||||||||
| Marshalls | |||||||||||
| JoAnn Fabrics | |||||||||||
| David's Furniture | |||||||||||
| Old Navy | |||||||||||
| Dollar Tree | |||||||||||
| Crossroads II (a) | 2008 | 133,717 | 97.2 | % | 20.58 | Giant Foods | Dollar Tree | ||||
| Fairview Commons | 2007 | 52,964 | 77.5 | % | 9.53 | Grocery Outlet | Dollar Tree | ||||
| Fishtown Crossing | 2001 | 120,375 | 91.8 | % | 14.89 | IGA Supermarket | Pep Boys | ||||
| Dollar Tree | |||||||||||
| Dollar General | |||||||||||
| Girard Plaza | 2019 | 35,688 | 100.0 | % | 15.77 | Save A Lot | Dollar General | ||||
| Gold Star Plaza | 2006 | 71,720 | 95.5 | % | 8.94 | Redner's | Dollar Tree | ||||
| Golden Triangle | 2003 | 202,790 | 89.2 | % | 13.24 | LA Fitness | |||||
| Marshalls | |||||||||||
| Staples | |||||||||||
| Immunotek | |||||||||||
| Walgreens | |||||||||||
| Dollar Tree | |||||||||||
| Halifax Plaza | 2003 | 51,510 | 100.0 | % | 13.57 | Giant Foods | Rite Aid | ||||
| Hamburg Square | 2004 | 102,058 | 96.7 | % | 6.50 | Redner's | Chesaco RV | ||||
| Lawndale Plaza | 2015 | 92,773 | 100.0 | % | 18.69 | Shop Rite | |||||
| Meadows Marketplace | 2004/2012 | 91,518 | 95.5 | % | 15.89 | Giant Foods | |||||
| Newport Plaza | 2003 | 64,489 | 100.0 | % | 12.82 | Giant Foods | Rite Aid | ||||
| Northside Commons | 2008 | 69,136 | 100.0 | % | 10.41 | Redner's | Dollar Tree | ||||
| Palmyra Shopping Center | 2005 | 111,051 | 91.1 | % | 7.55 | Weis Markets | Goodwill |
CEDAR REALTY TRUST, INC.
Real Estate Summary (Continued)
As of June 30, 2020
| Average | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Percent | base rent per | Selected | ||||||||
| Property Description | acquired | GLA | occupied | leased sq. ft. | Grocer Anchor | Other Anchors | |||||
| Pennsylvania (continued) | |||||||||||
| Quartermaster Plaza | 2014 | 456,602 | 92.0 | % | 14.35 | BJ's Wholesale Club | Home Depot | ||||
| Planet Fitness | |||||||||||
| Staples | |||||||||||
| PetSmart | |||||||||||
| Walgreens | |||||||||||
| Riverview Plaza | 2003 | 196,032 | 86.6 | % | 20.87 | United Artists | |||||
| Pep Boys | |||||||||||
| Staples | |||||||||||
| South Philadelphia | 2003 | 193,085 | 76.3 | % | 11.13 | Shop Rite | Ross Dress For Less | ||||
| LA Fitness | |||||||||||
| Kid City | |||||||||||
| Swede Square | 2003 | 100,816 | 75.5 | % | 18.56 | LA Fitness | |||||
| The Point | 2000 | 262,620 | 87.0 | % | 14.62 | Giant Foods | Burlington | ||||
| Grossman's Bargain Outlet | |||||||||||
| Staples | |||||||||||
| Dollar Tree | |||||||||||
| Trexler Mall | 2005 | 337,297 | 79.8 | % | 10.82 | Kohl's | |||||
| Lehigh Wellness Partners | |||||||||||
| Maxx Fitness | |||||||||||
| Marshalls | |||||||||||
| Home Goods | |||||||||||
| Dollar Tree | |||||||||||
| Trexlertown Plaza | 2006 | 325,171 | 94.5 | % | 14.19 | Giant Foods | Hobby Lobby | ||||
| Burlington | |||||||||||
| Big Lots | |||||||||||
| Tractor Supply | |||||||||||
| Total Pennsylvania | 4,049,457 | 91.5 | % | 14.04 | |||||||
| Virginia | |||||||||||
| Coliseum Marketplace | 2005 | 106,648 | 100.0 | % | 17.19 | Kroger | Michaels | ||||
| Elmhurst Square | 2006 | 66,254 | 89.3 | % | 10.25 | Food Lion | |||||
| General Booth Plaza | 2005 | 71,639 | 100.0 | % | 15.25 | Food Lion | |||||
| Glen Allen Shopping Center | 2005 | 63,328 | 100.0 | % | 7.71 | Publix | |||||
| Kempsville Crossing | 2005 | 79,512 | 93.1 | % | 12.08 | Walmart | The Iron Asylum | ||||
| Oak Ridge Shopping Center | 2006 | 38,700 | 100.0 | % | 11.03 | Food Lion | |||||
| Total Virginia | 426,081 | 97.0 | % | 12.92 | |||||||
| Total (90.0% leased at June 30, 2020) | 8,260,280 | 88.9 | % | $ | 13.90 | ||||||
| (a) | Although the ownership percentage for these joint ventures are 40% and 60%, respectively, the Company has included 100% of these joint ventures’ results of operations in its calculations, based on partnership promotes, additional equity interests, and/or other terms of the related joint venture agreements. | ||||||||||
| --- | --- | ||||||||||
| (b) | Giant Foods retains the leasehold obligation as Hobby Lobby is a subtenant and currently occupying the space. | ||||||||||
| --- | --- |
CEDAR REALTY TRUST, INC.
Tenant Categories (Based on Annualized Base Rent)
As of June 30, 2020
| Percentage | Percentage | Q2-2020 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| of occupied | Annualized | of annualized | percent | |||||||||||
| Tenant Categories | Examples/Description | GLA | GLA | base rent | base rents | collected | ||||||||
| Grocer Anchor | Giant Foods, Shop Rite, Stop & Shop, Big Y, BJ's Wholesale Club, Food Lion, Walmart Neighborhood Market | 2,379,000 | 32.4 | % | $ | 29,119,000 | 28.5 | % | 99.7 | % | ||||
| Limited/Fast Service Restaurants | Panera Bread, Subway, Dunkin, McDonalds, Chipotle | 269,000 | 3.7 | % | 7,137,000 | 7.0 | % | 76.5 | % | |||||
| Full Service Restaurants | Chili's, Red Lobster, Busboys and Poets | 244,000 | 3.3 | % | 5,384,000 | 5.3 | % | 52.3 | % | |||||
| Fitness | LA Fitness, Planet Fitness | 450,000 | 6.1 | % | 5,362,000 | 5.3 | % | 12.3 | % | |||||
| Dollar/Variety | Dollar Tree, Big Lots, Five Below | 524,000 | 7.1 | % | 5,112,000 | 5.0 | % | 89.3 | % | |||||
| Medical, Dental and Optical | Medical Centers, Urgent Care, Physical Therapy, Dentists, Optical | 217,000 | 3.0 | % | 4,614,000 | 4.5 | % | 75.4 | % | |||||
| Discount Department Stores | Marshalls, Kohl's, Burlington, Ross Dress For Less, TJ Maxx | 677,000 | 9.2 | % | 4,515,000 | 4.4 | % | 80.5 | % | |||||
| Personal Care | Nail Salons, Hair Salons, Spas, GNC | 148,000 | 2.0 | % | 3,558,000 | 3.5 | % | 59.6 | % | |||||
| Banking | Santander Bank, Wells Fargo, Bank of America, Middlesex Savings Bank | 87,000 | 1.2 | % | 2,727,000 | 2.7 | % | 99.8 | % | |||||
| Home Improvement/ Hardware | Home Depot, Tractor Supply | 339,000 | 4.6 | % | 2,674,000 | 2.6 | % | 99.8 | % | |||||
| Wireless and Gaming | AT&T Mobility, T-Mobile, Verizon Wireless, GameStop | 97,000 | 1.3 | % | 2,401,000 | 2.4 | % | 81.0 | % | |||||
| Pharmacy/Drug Store | Rite Aid, Walgreens, CVS | 92,000 | 1.3 | % | 2,233,000 | 2.2 | % | 96.2 | % | |||||
| Beer, Wine and Liquor | Beer, Wine and Liquor Stores | 117,000 | 1.6 | % | 2,149,000 | 2.1 | % | 98.4 | % | |||||
| Office Supply | Staples, The UPS Store | 120,000 | 1.6 | % | 2,066,000 | 2.0 | % | 94.1 | % | |||||
| Governmental Office | District of Columbia, Department of Motor Vehicle, USPS | 213,000 | 2.9 | % | 2,034,000 | 2.0 | % | 98.7 | % | |||||
| Clothing | Old Navy, Men's Wearhouse, Carter's, Madrag | 74,000 | 1.0 | % | 1,885,000 | 1.8 | % | 18.4 | % | |||||
| Home Furnishing | Homegoods, Mattress Firm | 170,000 | 2.3 | % | 1,847,000 | 1.8 | % | 70.2 | % | |||||
| Movie Theatre | United Artists, Gardner Theater | 111,000 | 1.5 | % | 1,828,000 | 1.8 | % | 4.2 | % | |||||
| Shoes | Famous Footwear, Shoe City | 105,000 | 1.4 | % | 1,735,000 | 1.7 | % | 36.2 | % | |||||
| Pet | PetSmart, Pet Valu, Pet Supplies Plus | 128,000 | 1.7 | % | 1,630,000 | 1.6 | % | 89.1 | % | |||||
| Non-Retail | Various office tenants | 106,000 | 1.4 | % | 1,552,000 | 1.5 | % | 89.6 | % | |||||
| Hobby Stores | Michaels, Hobby Lobby, A.C. Moore, JoAnn Fabrics | 155,000 | 2.1 | % | 1,544,000 | 1.5 | % | 77.1 | % | |||||
| Automotive Parts and Service | Pep Boys, Advance Auto Parts, AutoZone, Mavis | 72,000 | 1.0 | % | 1,493,000 | 1.5 | % | 97.6 | % | |||||
| Sporting and Outdoor Stores | Dicks, NAMCO Pools | 81,000 | 1.1 | % | 1,430,000 | 1.4 | % | 38.8 | % | |||||
| Beauty Supplies | Sally Beauty, Popcorn Beauty, Ulta | 106,000 | 1.4 | % | 1,280,000 | 1.3 | % | 70.3 | % | |||||
| Other | Professional Services, Thrift Stores, Cleaners, Education, Books and Other | 264,000 | 3.6 | % | 4,777,000 | 4.7 | % | 66.6 | % | |||||
| 7,345,000 | 100.0 | % | $ | 102,086,000 | 100.0 | % | 77.4 | % |
CEDAR REALTY TRUST, INC.
Tenant Concentration (Based on Annualized Base Rent)
As of June 30, 2020
| Number | Annualized | Percentage | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| of | Percentage | Annualized | base rent | annualized | ||||||||||
| Tenant | stores | GLA | of GLA | base rent | per sq. ft. | base rents | ||||||||
| Top twenty-five tenants (a): | ||||||||||||||
| Giant Foods | 8 | 538,000 | 6.5 | % | $ | 9,007,000 | $ | 16.74 | 8.8 | % | ||||
| Shop Rite | 4 | 252,000 | 3.1 | % | 4,092,000 | 16.24 | 4.0 | % | ||||||
| Stop & Shop | 3 | 211,000 | 2.6 | % | 2,786,000 | 13.20 | 2.7 | % | ||||||
| Dollar Tree | 21 | 224,000 | 2.7 | % | 2,414,000 | 10.78 | 2.4 | % | ||||||
| LA Fitness | 4 | 158,000 | 1.9 | % | 2,110,000 | 13.35 | 2.1 | % | ||||||
| Big Y | 2 | 106,000 | 1.3 | % | 2,006,000 | 18.92 | 2.0 | % | ||||||
| Home Depot | 2 | 253,000 | 3.1 | % | 1,977,000 | 7.81 | 1.9 | % | ||||||
| Staples | 5 | 106,000 | 1.3 | % | 1,773,000 | 16.73 | 1.7 | % | ||||||
| BJ's Wholesale Club | 1 | 118,000 | 1.4 | % | 1,760,000 | 14.92 | 1.7 | % | ||||||
| Marshalls | 6 | 170,000 | 2.1 | % | 1,558,000 | 9.16 | 1.5 | % | ||||||
| United Artists | 1 | 78,000 | 0.9 | % | 1,538,000 | 19.72 | 1.5 | % | ||||||
| Food Lion | 4 | 163,000 | 2.0 | % | 1,530,000 | 9.39 | 1.5 | % | ||||||
| Planet Fitness | 5 | 99,000 | 1.2 | % | 1,283,000 | 12.96 | 1.3 | % | ||||||
| Walmart | 3 | 192,000 | 2.3 | % | 1,193,000 | 6.21 | 1.2 | % | ||||||
| Redner's | 3 | 159,000 | 1.9 | % | 1,160,000 | 7.30 | 1.1 | % | ||||||
| Kohl's | 2 | 147,000 | 1.8 | % | 1,031,000 | 7.01 | 1.0 | % | ||||||
| Shaw's | 1 | 68,000 | 0.8 | % | 925,000 | 13.60 | 0.9 | % | ||||||
| District of Columbia | 1 | 34,000 | 0.4 | % | 905,000 | 26.62 | 0.9 | % | ||||||
| Home Goods | 4 | 105,000 | 1.3 | % | 885,000 | 8.43 | 0.9 | % | ||||||
| Walgreens | 2 | 29,000 | 0.4 | % | 875,000 | 30.17 | 0.9 | % | ||||||
| Kroger | 1 | 58,000 | 0.7 | % | 863,000 | 14.88 | 0.8 | % | ||||||
| PetSmart | 3 | 63,000 | 0.8 | % | 857,000 | 13.60 | 0.8 | % | ||||||
| Dick's Sporting Goods | 1 | 56,000 | 0.7 | % | 784,000 | 14.00 | 0.8 | % | ||||||
| Burlington Coat Factory | 2 | 84,000 | 1.0 | % | 760,000 | 9.05 | 0.7 | % | ||||||
| Boscov's | 1 | 159,000 | 1.9 | % | 742,000 | 4.67 | 0.7 | % | ||||||
| Sub-total top twenty-five tenants | 90 | 3,630,000 | 43.9 | % | 44,814,000 | 12.35 | 43.9 | % | ||||||
| Remaining tenants | 714 | 3,715,000 | 45.0 | % | 57,272,000 | 15.42 | 56.1 | % | ||||||
| Sub-total all tenants (b) | 804 | 7,345,000 | 88.9 | % | $ | 102,086,000 | $ | 13.90 | 100.0 | % | ||||
| Vacant space | N/A | 915,000 | 11.1 | % | ||||||||||
| Total | 804 | 8,260,000 | 100.0 | % | ||||||||||
| (a) | Several of the tenants listed above share common ownership with other tenants: | |||||||||||||
| --- | --- |
(1) Giant Foods, Stop & Shop and Food Lion, and (2) Marshalls, Home Goods, and TJ Maxx (GLA of 30,000; annualized base rent of $315,000).
| (b) | Comprised of tenants as follows: | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Percentage | Annualized | Percentage | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Occupied | of occupied | Annualized | base rent | annualized | ||||||||
| GLA | GLA | base rent | per sq. ft. | base rents | ||||||||
| Spaces ≥ 10,000 GLA | 5,419,000 | 73.8 | % | $ | 60,920,000 | $ | 11.24 | 59.7 | % | |||
| Spaces < 10,000 GLA | 1,926,000 | 26.2 | % | 41,166,000 | 21.37 | 40.3 | % | |||||
| Total | 7,345,000 | 100.0 | % | $ | 102,086,000 | $ | 13.90 | 100.0 | % |
CEDAR REALTY TRUST, INC.
Lease Expirations
As of June 30, 2020
| Total Portfolio | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Annualized | Percentage | |||||||||||
| Number | Percentage | expiring | of annualized | |||||||||
| Year of lease | of leases | GLA | of GLA | base rents | expiring | |||||||
| expiration | expiring | expiring | expiring | per sq. ft. | base rents | |||||||
| Month-To-Month | 57 | 256,000 | 3.5 | % | $ | 17.97 | 4.5 | % | ||||
| 2020 | 36 | 197,000 | 2.7 | % | 18.53 | 3.6 | % | |||||
| 2021 | 134 | 771,000 | 10.5 | % | 15.51 | 11.7 | % | |||||
| 2022 | 101 | 545,000 | 7.4 | % | 16.86 | 9.0 | % | |||||
| 2023 | 83 | 614,000 | 8.4 | % | 14.06 | 8.5 | % | |||||
| 2024 | 89 | 781,000 | 10.6 | % | 14.61 | 11.2 | % | |||||
| 2025 | 95 | 1,242,000 | 16.9 | % | 12.70 | 15.4 | % | |||||
| 2026 | 37 | 309,000 | 4.2 | % | 16.00 | 4.8 | % | |||||
| 2027 | 39 | 310,000 | 4.2 | % | 14.02 | 4.3 | % | |||||
| 2028 | 35 | 363,000 | 4.9 | % | 11.57 | 4.1 | % | |||||
| 2029 | 42 | 710,000 | 9.7 | % | 12.80 | 8.9 | % | |||||
| Thereafter | 56 | 1,247,000 | 17.0 | % | 11.47 | 14.0 | % | |||||
| All tenants | 804 | 7,345,000 | 100.0 | % | $ | 13.90 | 100.0 | % | ||||
| Spaces ≥ 10,000 GLA | ||||||||||||
| Annualized | Percentage | |||||||||||
| Number | Percentage | expiring | of annualized | |||||||||
| Year of lease | of leases | GLA | of GLA | base rents | expiring | |||||||
| expiration | expiring | expiring | expiring | per sq. ft. | base rents | |||||||
| Month-To-Month | 3 | 108,000 | 2.0 | % | $ | 15.67 | 2.8 | % | ||||
| 2020 | 5 | 100,000 | 1.8 | % | 15.34 | 2.5 | % | |||||
| 2021 | 14 | 458,000 | 8.5 | % | 10.89 | 8.2 | % | |||||
| 2022 | 13 | 283,000 | 5.2 | % | 13.55 | 6.3 | % | |||||
| 2023 | 14 | 441,000 | 8.1 | % | 10.61 | 7.7 | % | |||||
| 2024 | 19 | 598,000 | 11.0 | % | 11.68 | 11.5 | % | |||||
| 2025 | 26 | 978,000 | 18.0 | % | 10.66 | 17.1 | % | |||||
| 2026 | 9 | 223,000 | 4.1 | % | 12.91 | 4.7 | % | |||||
| 2027 | 10 | 204,000 | 3.8 | % | 11.53 | 3.9 | % | |||||
| 2028 | 10 | 280,000 | 5.2 | % | 9.23 | 4.2 | % | |||||
| 2029 | 16 | 618,000 | 11.4 | % | 11.83 | 12.0 | % | |||||
| Thereafter | 20 | 1,128,000 | 20.8 | % | 10.29 | 19.1 | % | |||||
| All tenants | 159 | 5,419,000 | 100.0 | % | $ | 11.24 | 100.0 | % | ||||
| Spaces < 10,000 GLA | ||||||||||||
| Annualized | Percentage | |||||||||||
| Number | Percentage | expiring | of annualized | |||||||||
| Year of lease | of leases | GLA | of GLA | base rents | expiring | |||||||
| expiration | expiring | expiring | expiring | per sq. ft. | base rents | |||||||
| Month-To-Month | 54 | 148,000 | 7.7 | % | $ | 19.66 | 7.1 | % | ||||
| 2020 | 31 | 97,000 | 5.0 | % | 21.82 | 5.1 | % | |||||
| 2021 | 120 | 313,000 | 16.3 | % | 22.26 | 16.9 | % | |||||
| 2022 | 88 | 262,000 | 13.6 | % | 20.42 | 13.0 | % | |||||
| 2023 | 69 | 173,000 | 9.0 | % | 22.87 | 9.6 | % | |||||
| 2024 | 70 | 183,000 | 9.5 | % | 24.17 | 10.7 | % | |||||
| 2025 | 69 | 264,000 | 13.7 | % | 20.23 | 13.0 | % | |||||
| 2026 | 28 | 86,000 | 4.5 | % | 24.01 | 5.0 | % | |||||
| 2027 | 29 | 106,000 | 5.5 | % | 18.80 | 4.8 | % | |||||
| 2028 | 25 | 83,000 | 4.3 | % | 19.47 | 3.9 | % | |||||
| 2029 | 26 | 92,000 | 4.8 | % | 19.29 | 4.3 | % | |||||
| Thereafter | 36 | 119,000 | 6.2 | % | 22.61 | 6.5 | % | |||||
| All tenants | 645 | 1,926,000 | 100.0 | % | $ | 21.37 | 100.0 | % |
CEDAR REALTY TRUST, INC.
Leasing Activity (a)
| Tenant | Average | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Leases | Square | New Rent | Prior Rent | Cash Basis | Improvements | Lease | |||||||
| Signed | Feet | Per. Sq. Ft (a) | Per. Sq. Ft (a) | % Change | Per. Sq. Ft (b) | Term (Yrs) | |||||||
| Total Comparable Leases | |||||||||||||
| 2nd Quarter 2020 | 21 | 182,300 | $ | 10.63 | $ | 11.06 | -3.9% | $ | 2.07 | 4.6 | |||
| 1st Quarter 2020 | 29 | 307,900 | $ | 16.15 | $ | 16.21 | -0.4% | $ | 6.46 | 6.8 | |||
| 4th Quarter 2019 | 40 | 286,200 | $ | 14.64 | $ | 14.40 | 1.7% | $ | 11.28 | 5.3 | |||
| 3rd Quarter 2019 | 40 | 576,200 | $ | 9.44 | $ | 8.70 | 8.5% | $ | 16.74 | 8.4 | |||
| Total | 130 | 1,352,600 | $ | 12.23 | $ | 11.93 | 2.5% | $ | 11.27 | 6.9 | |||
| New Leases - Comparable | |||||||||||||
| 2nd Quarter 2020 | 4 | 12,300 | $ | 22.60 | $ | 32.46 | -30.4% | $ | 30.69 | 6.0 | |||
| 1st Quarter 2020 | 12 | 37,600 | $ | 18.11 | $ | 19.57 | -7.5% | $ | 34.91 | 7.4 | |||
| 4th Quarter 2019 | 12 | 75,600 | $ | 11.29 | $ | 12.83 | -12.0% | $ | 42.72 | 9.3 | |||
| 3rd Quarter 2019 | 14 | 165,500 | $ | 10.84 | $ | 8.44 | 28.4% | $ | 58.28 | 10.2 | |||
| Total | 42 | 291,000 | $ | 12.39 | $ | 12.04 | 3.0% | $ | 50.05 | 9.4 | |||
| Renewals - Comparable | |||||||||||||
| 2nd Quarter 2020 | 17 | 170,000 | $ | 9.77 | $ | 9.52 | 2.6% | $ | 0.00 | 4.5 | |||
| 1st Quarter 2020 | 17 | 270,300 | $ | 15.88 | $ | 15.74 | 0.9% | $ | 2.50 | 6.7 | |||
| 4th Quarter 2019 | 28 | 210,600 | $ | 15.84 | $ | 14.96 | 5.9% | $ | 0.00 | 3.9 | |||
| 3rd Quarter 2019 | 26 | 410,700 | $ | 8.88 | $ | 8.81 | 0.9% | $ | 0.00 | 7.7 | |||
| Total | 88 | 1,061,600 | $ | 12.19 | $ | 11.91 | 2.3% | $ | 0.64 | 6.2 | |||
| Total Comparable and Non-Comparable | |||||||||||||
| 2nd Quarter 2020 | 21 | 182,300 | $ | 10.63 | N/A | N/A | $ | 2.07 | 4.6 | ||||
| 1st Quarter 2020 | 30 | 309,500 | $ | 16.18 | N/A | N/A | $ | 6.43 | 6.8 | ||||
| 4th Quarter 2019 | 41 | 297,100 | $ | 15.08 | N/A | N/A | $ | 13.24 | 5.5 | ||||
| 3rd Quarter 2019 | 42 | 579,400 | $ | 9.49 | N/A | N/A | $ | 16.82 | 8.4 | ||||
| Total | 134 | 1,368,300 | $ | 12.37 | N/A | N/A | $ | 11.73 | 6.9 | ||||
| (a) | Leases on this schedule represent retail activity only; office leases are not included. New rent per sq. ft. represents the minimum cash rent under the new lease for the first 12 months of the term. Prior rent per sq. ft. represents the minimum cash rent under the prior lease for the last 12 months of the previous term. | ||||||||||||
| --- | --- | ||||||||||||
| (b) | Includes costs of tenant specific landlord work and tenant allowances provided to tenants. Excludes first generation space. | ||||||||||||
| --- | --- |
CEDAR REALTY TRUST, INC.
Same-Property Net Operating Income ("Same-property NOI")
| Same-Property NOI (a) | Three months ended June 30, | Six months ended June 30, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Base Rents | $ | 18,192,000 | $ | 20,329,000 | $ | 38,358,000 | $ | 40,490,000 | ||||
| Expense Recoveries | 5,237,000 | 6,120,000 | 11,910,000 | 12,926,000 | ||||||||
| Total Revenues | 23,429,000 | 26,449,000 | 50,268,000 | 53,416,000 | ||||||||
| Operating expenses | 7,709,000 | 8,033,000 | 16,599,000 | 17,191,000 | ||||||||
| Same-Property NOI | $ | 15,720,000 | $ | 18,416,000 | $ | 33,669,000 | $ | 36,225,000 | ||||
| Occupied | 90.2% | 91.4% | 90.2% | 91.4% | ||||||||
| Leased | 91.5% | 91.6% | 91.5% | 91.6% | ||||||||
| Average base rent | $ | 13.57 | $ | 13.56 | $ | 13.57 | $ | 13.56 | ||||
| Number of same properties | 46 | 46 | 46 | 46 | ||||||||
| Same-Property NOI growth | -14.6% | -7.1% | ||||||||||
| Same-Property NOI Reconciliation (a) | Three months ended June 30, | Six months ended June 30, | ||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Operating income | $ | (331,000 | ) | $ | 11,488,000 | $ | 3,088,000 | $ | 20,368,000 | |||
| Add (deduct): | ||||||||||||
| General and administrative | 3,906,000 | 5,418,000 | 8,908,000 | 10,216,000 | ||||||||
| Gain on sales | - | (2,841,000 | ) | - | (2,942,000 | ) | ||||||
| Impairment charges | 133,000 | - | 7,607,000 | - | ||||||||
| Depreciation and amortization | 14,426,000 | 10,346,000 | 28,173,000 | 20,475,000 | ||||||||
| Straight-line rents | 988,000 | (111,000 | ) | 945,000 | (335,000 | ) | ||||||
| Amortization of intangible lease liabilities | (307,000 | ) | (631,000 | ) | (766,000 | ) | (1,222,000 | ) | ||||
| Other adjustments | (54,000 | ) | (108,000 | ) | 1,000 | (123,000 | ) | |||||
| NOI related to properties not defined as same-property | (3,041,000 | ) | (5,145,000 | ) | (14,287,000 | ) | (10,212,000 | ) | ||||
| Same-Property NOI | $ | 15,720,000 | $ | 18,416,000 | $ | 33,669,000 | $ | 36,225,000 | ||||
| (a) | Same-Property NOI includes properties that were 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 excluding properties classified as "held for sale". Same-Property NOI (i) excludes non-cash revenues such as straight-line rent adjustments and amortization of intangible lease liabilities, (ii) reflects internal management fees charged to properties, and (iii) excludes infrequent items, such as lease termination fee income. | |||||||||||
| --- | --- |
CEDAR REALTY TRUST, INC.
Summary of Real Estate Held For Sale
As of June 30, 2020
| Average | ||||||||
|---|---|---|---|---|---|---|---|---|
| Percent | base rent per | |||||||
| Real Estate Held for Sale | Location | GLA | occupied | leased sq. ft. | ||||
| Carll's Corner | Bridgeton, NJ | 129,582 | 42.0 | % | $ | 8.62 | ||
| Metro Square (a) | Owings Mills, MD | 71,896 | 18.4 | % | $ | 28.26 | ||
| Suffolk Plaza | Suffolk, VA | 67,216 | 100.0 | % | $ | 10.90 | ||
| The Commons | Dubois, PA | 203,309 | 59.2 | % | $ | 7.10 | ||
| 472,003 | 54.1 | % | $ | 9.52 | ||||
| (a) | Property was sold on July 9, 2020. | |||||||
| --- | --- |
CEDAR REALTY TRUST, INC.
Non-GAAP Financial Disclosures
Funds From Operations (“FFO”) and Operating Funds From Operations (“Operating FFO”)
FFO is a widely recognized supplemental non-GAAP measure utilized to evaluate the financial performance of a REIT. The Company presents FFO in accordance with the definition adopted by the National Association of Real Estate Investments Trusts (“NAREIT”). NAREIT generally defines FFO as net income attributable to common shareholders (determined in accordance with GAAP), excluding gains (losses) from sales of real estate properties, impairment provisions on real estate properties, plus real estate related depreciation and amortization, and adjustments for partnerships and joint ventures to reflect FFO on the same basis. The Company considers 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.
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. FFO and Operating FFO do not represent cash generated from operating activities and should not be considered as an alternative to net income attributable to common shareholders or to cash flow from operating activities. The Company’s computations of FFO and Operating FFO may differ from the computations utilized by other REITs and, accordingly, may not be comparable to such REITs.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) and Adjusted EBITDAre
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, management transition, 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 Net Operating Income (“Same-Property NOI”)
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. Same-property NOI should not be considered as an alternative to consolidated operating income prepared in accordance with GAAP or as a measure of liquidity. The Company’s computations of same-property NOI may differ from the computations utilized by other REITs and, accordingly, may not be comparable to such REITs.
| 23 |
|---|