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): October 29, 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 October 29, 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 September 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 September 30, 2020 (including press release dated October 29, 2020). |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
| --- | --- |
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: October 29, 2020
cdr-ex991_6.htm
CEDAR REALTY TRUST, INC.
Supplemental Financial Information
September 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 Dispositions and 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
THIRD QUARTER 2020 RESULTS AND COVID-19 UPDATE
Port Washington, New York – October 29, 2020 – Cedar Realty Trust, Inc. (NYSE:CDR – the “Company”) today reported results for the third quarter 2020. Net loss attributable to common shareholders was $(0.02) per diluted share compared to net loss of $(0.00) per diluted share for the comparable 2019 period. Other highlights include:
Third Quarter 2020 Highlights
| • | NAREIT-defined FFO and Operating FFO of $0.09 per diluted share compared to $0.06 for the prior quarter |
|---|---|
| • | Same-property net operating income (NOI) decreased 9.1% compared to a 14.6% decrease in the prior quarter |
| --- | --- |
| • | Collected 91% of base rents and monthly charges compared to 77% in the prior quarter |
| --- | --- |
| • | Recorded $2.2 million of uncollectible revenue/bad debt expense compared to $4.6 million in the prior quarter |
| --- | --- |
| • | Wrote-off $0.3 million of straight line rent receivables compared to $1.2 million in the prior quarter |
| --- | --- |
| • | Signed 33 new and renewal leases for 249,200 square feet in the quarter |
| --- | --- |
| • | Same-property portfolio 91.7% leased at quarter-end |
| --- | --- |
| • | On July 9, 2020, sold Metro Square for $4.3 million and on September 17, 2020, sold an outparcel building at Oakland Mills for $1.1 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 building to be constructed at Senator Square |
| --- | --- |
Subsequent Events
| • | On October 8, 2020, sold Glen Allen for $8.5 million |
|---|---|
| • | On October 27, 2020, the Board of Directors approved a plan for a 6.6 for 1 reverse common stock split, which will be completed prior to December 31, 2020 |
| --- | --- |
| • | On October 27, 2020, utilized our revolving credit facility to repay the $75.0 million term loan which was set to mature in February 2021, as we advance the long-term refinancing of the loan which we anticipate closing in early 2021. The revolving credit facility matures in September 2021, and may be extended, at the Company’s option, for an additional one-year period, subject to customary conditions |
| --- | --- |
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 | |||||
|---|---|---|---|---|---|
| Nine months ended<br><br><br>September 30, 2020 | Total | Deferred / Waived Months | Payback<br><br><br>Months | Payback<br><br><br>Period | |
| Deferred Rent | $ 2.7 | $ 3.0 | 1 to 10 | 1 to 24 | July 2020 to March 2021 |
| (Wtd Avg 4.1) | (Wtd Avg 10.3) | (Wtd Avg Dec 2020) | |||
| Waived Rent | $ 0.9 | $ 1.0 | 1 to 11 | N/A | N/A |
| (Wtd Avg 4.2) |
For the quarter ended September 30, 2020, base rent and monthly charges were reduced by $0.4 million related to tenant bankruptcies.
Financial Results
Net loss attributable to common shareholders for the third quarter of 2020 was $(1.4) million or $(0.02) per diluted share, compared to net income of $0.1 million or $(0.00) 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 2020. Net loss attributable to common shareholders for the nine-month period ending September 30, 2020 was $(15.1) million or $(0.18) per dilutive share, compared to net income of $3.0 million or $0.03 per dilutive share for the same period of 2019. The principal differences in the comparative nine-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 2020 and 2019.
NAREIT-defined FFO and Operating FFO for the third quarter of 2020 was $8.0 million or $0.09 per diluted share, compared to $10.6 million or $0.12 per diluted share for the same period in 2019. NAREIT-defined FFO for the nine-month period ended September 30, 2020 was $30.0 million or $0.33 per dilutive share, compared to $31.0 million or $0.34 per diluted share for the same period of 2019. Operating FFO for the nine-month period ended September 30, 2020 was $30.5 million or $0.33 per diluted share, compared to $31.0 million or $0.34 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 nine-month Operating FFO results were the effects of COVID-19 and lease termination income in 2020.
Portfolio Update
During the third quarter of 2020, the Company signed 33 leases for 249,200 square feet. On a comparable space basis, the Company leased 240,100 square feet at a positive lease spread of 1.9% on a cash basis (new leases increased 21.5% and renewals decreased 3.1%). During the nine-month period ended September 30, 2020, the Company signed 84 leases for 741,000 square feet. On a comparable space basis, the Company leased 730,300 square feet at a negative lease spread of (0.5)% on a cash basis (new leases decreased 3.6% and renewals increased 0.2%).
Same-property NOI decreased 9.1% excluding redevelopment properties and decreased 11.0% 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 91.7% leased at September 30, 2020, compared to 93.0% at December 31, 2019 and 92.9% at September 30, 2019. The Company’s total portfolio, excluding properties held for sale, was 89.8% leased at September 30, 2020, compared to 93.2% at December 31, 2019 and 92.3% at September 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 5, 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.
On October 27, 2020, the Company utilized its revolving credit facility to repay the $75.0 million term loan which was set to mature in February 2021. The revolving credit facility matures in September 2021, and may be extended, at the Company’s option, for an additional one-year period, subject to customary conditions.
As of September 30, 2020, Carll’s Corner, located in Bridgeton, New Jersey, Glen Allen Shopping Center, located in Glen Allen, Virginia, Suffolk Plaza, located in Suffolk, Virginia, and The Commons, located in Dubois Pennsylvania, have been classified as “real estate held for sale” on the accompanying consolidated balance sheet. On October 8, 2020, the Company sold Glen Allen Shopping Center for $8.5 million.
Non-GAAP Financial Measures
NAREIT-defined FFO is a widely recognized supplemental non-GAAP measure utilized to evaluate the financial performance of a REIT. The Company considers NAREIT-defined FFO to be an appropriate measure of its financial performance because it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than other depreciable assets. The Company also considers Operating FFO to be an additional meaningful financial measure of financial performance because it excludes items the Company does not believe are indicative of its core operating performance, such as acquisition pursuit costs, amounts relating to early extinguishment of debt and preferred stock redemption costs, management transition costs and certain redevelopment costs. The Company believes Operating FFO further assists in comparing the Company’s performance across reporting periods on a consistent basis by excluding such items. NAREIT-defined FFO and Operating FFO should be reviewed with GAAP net income attributable to common shareholders, the most directly comparable GAAP financial measure, when trying to understand the Company’s operating performance. A reconciliation of net income (loss) attributable to common shareholders to NAREIT-defined FFO and Operating FFO for the three and nine months ended September 30, 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 September 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, October 29, 2020, at 5:00 PM (ET) to discuss the quarterly results. The conference call can be accessed by dialing (855) 327-6837 or (1) (631) 891-4304 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 October 29, 2020, until midnight (ET) on November 11, 2020. The replay dial-in numbers are (844) 512-2921 or (1) (412) 317-6671 for international callers. Please use passcode 10011515 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 54 properties, with approximately 8.2 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
| September 30, | December 31, | |||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| ASSETS | ||||||
| Real estate, at cost | $ | 1,520,828,000 | $ | 1,515,206,000 | ||
| Less accumulated depreciation | (419,363,000 | ) | (389,861,000 | ) | ||
| Real estate, net | 1,101,465,000 | 1,125,345,000 | ||||
| Real estate held for sale | 20,137,000 | 13,230,000 | ||||
| Cash and cash equivalents | 3,568,000 | 2,747,000 | ||||
| Receivables | 23,052,000 | 22,164,000 | ||||
| Other assets and deferred charges, net | 50,118,000 | 42,139,000 | ||||
| TOTAL ASSETS | $ | 1,198,340,000 | $ | 1,205,625,000 | ||
| LIABILITIES AND EQUITY | ||||||
| Liabilities: | ||||||
| Mortgage loan payable | $ | 45,635,000 | $ | 46,370,000 | ||
| Finance lease obligation | 5,346,000 | 5,364,000 | ||||
| Unsecured revolving credit facility | 120,900,000 | 106,000,000 | ||||
| Unsecured term loans | 473,372,000 | 472,841,000 | ||||
| Accounts payable and accrued liabilities | 62,207,000 | 50,502,000 | ||||
| Unamortized intangible lease liabilities | 9,270,000 | 10,473,000 | ||||
| Total liabilities | 716,730,000 | 691,550,000 | ||||
| Equity: | ||||||
| Preferred stock | 159,541,000 | 159,541,000 | ||||
| Common stock and other shareholders' equity | 318,301,000 | 351,020,000 | ||||
| Noncontrolling interests | 3,768,000 | 3,514,000 | ||||
| Total equity | 481,610,000 | 514,075,000 | ||||
| TOTAL LIABILITIES AND EQUITY | $ | 1,198,340,000 | $ | 1,205,625,000 |
CEDAR REALTY TRUST, INC.
Condensed Consolidated Statements of Operations
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||||||
| PROPERTY REVENUES | ||||||||||||
| Rental revenues | $ | 30,890,000 | $ | 35,490,000 | $ | 94,466,000 | $ | 107,391,000 | ||||
| Other | 285,000 | 422,000 | 7,814,000 | 1,064,000 | ||||||||
| Total property revenues | 31,175,000 | 35,912,000 | 102,280,000 | 108,455,000 | ||||||||
| PROPERTY OPERATING EXPENSES | ||||||||||||
| Operating, maintenance and management | 5,579,000 | 6,321,000 | 18,808,000 | 20,450,000 | ||||||||
| Real estate and other property-related taxes | 5,253,000 | 5,178,000 | 15,353,000 | 15,475,000 | ||||||||
| Total property operating expenses | 10,832,000 | 11,499,000 | 34,161,000 | 35,925,000 | ||||||||
| PROPERTY OPERATING INCOME | 20,343,000 | 24,413,000 | 68,119,000 | 72,530,000 | ||||||||
| OTHER EXPENSES AND INCOME | ||||||||||||
| General and administrative | 3,925,000 | 4,886,000 | 12,833,000 | 15,102,000 | ||||||||
| Depreciation and amortization | 10,035,000 | 10,547,000 | 38,208,000 | 31,022,000 | ||||||||
| Gain on sales | (679,000 | ) | - | (679,000 | ) | (2,942,000 | ) | |||||
| Impairment charges | - | - | 7,607,000 | - | ||||||||
| Total other expenses and income | 13,281,000 | 15,433,000 | 57,969,000 | 43,182,000 | ||||||||
| OPERATING INCOME | 7,062,000 | 8,980,000 | 10,150,000 | 29,348,000 | ||||||||
| NON-OPERATING INCOME AND EXPENSES | ||||||||||||
| Interest expense | (5,658,000 | ) | (6,033,000 | ) | (16,853,000 | ) | (17,868,000 | ) | ||||
| Total non-operating income and expense | (5,658,000 | ) | (6,033,000 | ) | (16,853,000 | ) | (17,868,000 | ) | ||||
| NET INCOME (LOSS) | 1,404,000 | 2,947,000 | (6,703,000 | ) | 11,480,000 | |||||||
| Attributable to noncontrolling interests | (137,000 | ) | (167,000 | ) | (373,000 | ) | (435,000 | ) | ||||
| NET INCOME (LOSS) ATTRIBUTABLE TO CEDAR REALTY TRUST, INC. | 1,267,000 | 2,780,000 | (7,076,000 | ) | 11,045,000 | |||||||
| Preferred stock dividends | (2,688,000 | ) | (2,688,000 | ) | (8,064,000 | ) | (8,064,000 | ) | ||||
| NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | (1,421,000 | ) | $ | 92,000 | $ | (15,140,000 | ) | $ | 2,981,000 | ||
| NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND DILUTED): | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.18 | ) | $ | 0.03 | |
| Weighted average number of common shares - basic and diluted | 86,526,000 | 86,262,000 | 86,469,000 | 86,367,000 |
CEDAR REALTY TRUST, INC.
Supporting Schedules to Consolidated Statements
| Balance Sheets | September 30, | December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||||||
| Construction in process (included in real estate, at cost) | $ | 37,909,000 | $ | 26,624,000 | ||||||
| Receivables | ||||||||||
| Rents and other tenant receivables, net (a) | $ | 7,580,000 | $ | 5,061,000 | ||||||
| Mortgage note receivable | 3,500,000 | 3,500,000 | ||||||||
| Straight-line rents | 11,972,000 | 13,603,000 | ||||||||
| $ | 23,052,000 | $ | 22,164,000 | |||||||
| Other assets and deferred charges, net | ||||||||||
| Lease origination costs | $ | 22,503,000 | $ | 19,947,000 | ||||||
| Right-of-use assets | 13,932,000 | 13,638,000 | ||||||||
| Prepaid expenses | 11,299,000 | 6,048,000 | ||||||||
| Revolving credit facility issuance costs | 824,000 | 1,021,000 | ||||||||
| Other | 1,560,000 | 1,485,000 | ||||||||
| $ | 50,118,000 | $ | 42,139,000 | |||||||
| Accounts payable and accrued liabilities | ||||||||||
| Accounts payable and accrued liabilities | $ | 26,882,000 | $ | 29,544,000 | ||||||
| Right-of-use liabilities | 14,153,000 | 13,778,000 | ||||||||
| Interest rate swap liabilities | 21,172,000 | 7,180,000 | ||||||||
| $ | 62,207,000 | $ | 50,502,000 | |||||||
| Statements of Operations | Three months ended September 30, | Nine months ended September 30, | ||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||
| Rental revenues | ||||||||||
| Base rents | $ | 23,233,000 | $ | 26,237,000 | $ | 71,776,000 | $ | 78,990,000 | ||
| Expense recoveries | 6,812,000 | 7,935,000 | 21,695,000 | 25,079,000 | ||||||
| Percentage rent | 823,000 | 252,000 | 1,152,000 | 699,000 | ||||||
| Straight-line rents | (277,000 | ) | 76,000 | (1,222,000 | ) | 411,000 | ||||
| Amortization of intangible lease liabilities, net | 299,000 | 990,000 | 1,065,000 | 2,212,000 | ||||||
| $ | 30,890,000 | $ | 35,490,000 | $ | 94,466,000 | $ | 107,391,000 | |||
| (a) | As of September 30, 2020 and June 30, 2020, includes $2.5 million and $1.8 million, respectively, 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 September 30, | Nine months ended September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Net (loss) income attributable to common shareholders | $ | (1,421,000 | ) | $ | 92,000 | $ | (15,140,000 | ) | $ | 2,981,000 | ||
| Real estate depreciation and amortization | 10,010,000 | 10,501,000 | 38,115,000 | 30,884,000 | ||||||||
| Limited partners' interest | (7,000 | ) | 1,000 | (87,000 | ) | 20,000 | ||||||
| Gain on sales | (679,000 | ) | - | (679,000 | ) | (2,942,000 | ) | |||||
| Impairment charges | - | - | 7,607,000 | - | ||||||||
| Consolidated minority interests: | ||||||||||||
| Share of income | 144,000 | 166,000 | 460,000 | 415,000 | ||||||||
| Share of FFO | (15,000 | ) | (130,000 | ) | (276,000 | ) | (316,000 | ) | ||||
| Funds From Operations ("FFO") applicable to diluted common shares | 8,032,000 | 10,630,000 | 30,000,000 | 31,042,000 | ||||||||
| Adjustments for items affecting comparability: | ||||||||||||
| Redevelopment costs (a) | - | - | 483,000 | - | ||||||||
| Operating Funds From Operations ("Operating FFO") applicable to diluted common shares | $ | 8,032,000 | $ | 10,630,000 | $ | 30,483,000 | $ | 31,042,000 | ||||
| FFO per diluted common share: | $ | 0.09 | $ | 0.12 | $ | 0.33 | $ | 0.34 | ||||
| Operating FFO per diluted common share: | $ | 0.09 | $ | 0.12 | $ | 0.33 | $ | 0.34 | ||||
| Weighted average number of diluted common shares: | ||||||||||||
| Common shares and equivalents | 90,819,000 | 90,521,000 | 90,805,000 | 90,636,000 | ||||||||
| OP Units | 537,000 | 544,000 | 537,000 | 550,000 | ||||||||
| 91,356,000 | 91,065,000 | 91,342,000 | 91,186,000 | |||||||||
| Additional Disclosures (b): | ||||||||||||
| Straight-line rents | $ | (277,000 | ) | $ | 76,000 | $ | (1,222,000 | ) | $ | 411,000 | ||
| Amortization of intangible lease liabilities | 299,000 | 990,000 | 1,065,000 | 2,212,000 | ||||||||
| Non-real estate amortization | 377,000 | 362,000 | 1,063,000 | 1,106,000 | ||||||||
| Share-based compensation, net | 767,000 | 1,035,000 | 2,753,000 | 3,078,000 | ||||||||
| Maintenance capital expenditures (c) | 2,610,000 | 1,857,000 | 6,138,000 | 7,422,000 | ||||||||
| Lease related expenditures (d) | 1,629,000 | 3,318,000 | 6,179,000 | 6,543,000 | ||||||||
| Development and redevelopment capital expenditures | 12,293,000 | 4,433,000 | 23,418,000 | 13,963,000 | ||||||||
| Capitalized interest and financing costs | 641,000 | 485,000 | 1,865,000 | 1,187,000 | ||||||||
| (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 September 30, | Nine months ended September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Net income (loss) | $ | 1,404,000 | $ | 2,947,000 | $ | (6,703,000 | ) | $ | 11,480,000 | |||
| Interest expense | 5,658,000 | 6,033,000 | 16,853,000 | 17,868,000 | ||||||||
| Depreciation and amortization | 10,035,000 | 10,547,000 | 38,208,000 | 31,022,000 | ||||||||
| Gain on sales | (679,000 | ) | - | (679,000 | ) | (2,942,000 | ) | |||||
| Impairment charges | - | - | 7,607,000 | - | ||||||||
| EBITDAre | 16,418,000 | 19,527,000 | 55,286,000 | 57,428,000 | ||||||||
| Adjustments for items affecting comparability: | ||||||||||||
| Redevelopment costs (a) | - | - | 483,000 | - | ||||||||
| Adjusted EBITDAre | $ | 16,418,000 | $ | 19,527,000 | $ | 55,769,000 | $ | 57,428,000 | ||||
| Net debt | ||||||||||||
| Debt, excluding issuance costs | $ | 641,807,000 | $ | 628,931,000 | $ | 641,807,000 | $ | 628,931,000 | ||||
| Finance lease obligation | 5,640,000 | 5,673,000 | 5,640,000 | 5,673,000 | ||||||||
| Unrestricted cash and cash equivalents | (3,568,000 | ) | (1,983,000 | ) | (3,568,000 | ) | (1,983,000 | ) | ||||
| $ | 643,879,000 | $ | 632,621,000 | $ | 643,879,000 | $ | 632,621,000 | |||||
| Fixed charges (b) | ||||||||||||
| Interest expense | $ | 5,916,000 | $ | 6,185,000 | $ | 17,647,000 | $ | 18,043,000 | ||||
| Preferred stock dividends | 2,688,000 | 2,688,000 | 8,064,000 | 8,064,000 | ||||||||
| Scheduled mortgage repayments | 269,000 | 258,000 | 797,000 | 766,000 | ||||||||
| $ | 8,873,000 | $ | 9,131,000 | $ | 26,508,000 | $ | 26,873,000 | |||||
| Debt and Coverage Ratios (c) | ||||||||||||
| Net debt to Adjusted EBITDAre | 9.8 | x | 8.1 | x | 9.9 | x | 8.3 | x | ||||
| Interest coverage ratio (based on Adjusted EBITDAre) | 2.8 | x | 3.2 | x | 2.8 | x | 3.2 | x | ||||
| Fixed charge coverage ratio (based on Adjusted EBITDAre) | 1.8 | x | 2.1 | x | 1.8 | 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 September 30, 2020
| Maturity | Interest | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dates | Rates | Amounts | |||||||||
| Secured fixed-rate debt: | |||||||||||
| Franklin Village Plaza mortgage | Jun 2026 | 3.9% | $ | 45,907,000 | |||||||
| Senator Square finance lease obligation (a) | Sep 2050 | 5.3% | 5,640,000 | ||||||||
| Unsecured debt: | |||||||||||
| Variable-rate (b): | |||||||||||
| Revolving credit facility (c) | Sep 2021 | 2.3% | 120,900,000 | ||||||||
| Term loan | Sep 2022 | 1.9% | 50,000,000 | ||||||||
| Fixed-rate (d): | |||||||||||
| Term loan (e) | Feb 2021 | 3.9% | 75,000,000 | ||||||||
| Term loan | Feb 2022 | 3.3% | 50,000,000 | ||||||||
| Term loan | Sep 2022 | 3.5% | 50,000,000 | ||||||||
| Term loan | Apr 2023 | 3.5% | 100,000,000 | ||||||||
| Term loan | Sep 2024 | 3.9% | 75,000,000 | ||||||||
| Term loan | Jul 2025 | 4.8% | 75,000,000 | ||||||||
| Total unsecured debt | weighted average | 3.4% | 595,900,000 | ||||||||
| Total debt | weighted average | 3.4% | 647,447,000 | ||||||||
| Unamortized mortgage, finance lease and term loan issuance costs | (2,194,000 | ) | |||||||||
| Total debt | $ | 645,253,000 | |||||||||
| Fixed to variable rate debt ratio: | |||||||||||
| Fixed-rate debt | 73.6% | $ | 476,547,000 | ||||||||
| Variable-rate debt | 26.4% | 170,900,000 | |||||||||
| 100.0% | $ | 647,447,000 | |||||||||
| Mortgage Loan | Finance Lease | Revolving | Term | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Year | Payable | Obligation | Credit Facility | Loans | Amounts | ||||||
| 2020 | $ | 262,000 | $ | 8,000 | $ | - | $ | - | $ | 270,000 | |
| 2021 | 1,074,000 | 35,000 | 195,900,000 | (c,f) | - | 197,009,000 | |||||
| 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 | ||||||
| $ | 45,907,000 | $ | 5,640,000 | $ | 195,900,000 | $ | 400,000,000 | $ | 647,447,000 | ||
| (a) | Maturity date reflects the first date the Company has the right to acquire the underlying land on the finance lease obligation. | ||||||||||
| --- | --- | ||||||||||
| (b) | For variable-rate debt, rate in effect as of September 30, 2020. | ||||||||||
| --- | --- | ||||||||||
| (c) | Subject to a one-year extension at the Company's option. | ||||||||||
| --- | --- | ||||||||||
| (d) | 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. | ||||||||||
| --- | --- | ||||||||||
| (e) | On October 27, 2020, the Company utilized its revolving credit facility to repay this term loan. | ||||||||||
| --- | --- | ||||||||||
| (f) | Reflects the $75.0 million term loan repayment utilizing the revolving credit facility on October 27, 2020. | ||||||||||
| --- | --- |
CEDAR REALTY TRUST, INC.
Real Estate Summary
As of September 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 | % | $ | 23.45 | Big Y | Dollar Tree | |||
| Brickyard Plaza | 2004 | 227,598 | 99.2 | % | 8.78 | Home Depot | |||||
| Kohl's | |||||||||||
| Michaels | |||||||||||
| PetSmart | |||||||||||
| Groton Shopping Center | 2007 | 130,264 | 100.0 | % | 12.29 | Aldi | TJ Maxx | ||||
| Goodwill | |||||||||||
| Planet Fitness | |||||||||||
| Dollar Tree | |||||||||||
| Pet Supplies Plus | |||||||||||
| Jordan Lane | 2005 | 177,504 | 72.2 | % | 11.82 | Stop & Shop | Crunch Fitness | ||||
| Dollar Tree | |||||||||||
| New London Mall | 2009 | 259,566 | 88.0 | % | 13.01 | 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 | % | 7.88 | Walmart | NAMCO | ||||
| Southington Wine & Spirit | |||||||||||
| Total Connecticut | 1,141,979 | 92.2 | % | 11.50 | |||||||
| Delaware | |||||||||||
| Christina Crossing | 2017 | 119,446 | 90.7 | % | 19.57 | Shop Rite | |||||
| Maryland / Washington, D.C. | |||||||||||
| East River Park | 2015 | 150,038 | 97.4 | % | 20.56 | Safeway | District of Columbia | ||||
| CVS | |||||||||||
| Oakland Mills | 2005 | 57,008 | 100.0 | % | 12.02 | LA Mart | |||||
| Patuxent Crossing (f/k/a San Souci Plaza) (a) | 2009 | 264,134 | 82.3 | % | 11.79 | McKay's Market and Café | Marshalls | ||||
| Home Goods | |||||||||||
| World Gym | |||||||||||
| JOANN Fabrics | |||||||||||
| Dollar Tree | |||||||||||
| Senator Square | 2018 | 61,691 | 100.0 | % | 21.78 | Unity Health Care | |||||
| Dollar Tree | |||||||||||
| Shoppes at Arts District | 2016 | 35,676 | 100.0 | % | 37.45 | 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 | % | 12.72 | Food Lion | Dollar Tree | ||||
| Total Maryland / Washington, D.C. | 895,683 | 79.2 | % | 15.64 | |||||||
| 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 | 87.9 | % | 21.30 | 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 | 87,406 | 93.2 | % | 10.84 | Big Y | Planet Fitness | ||||
| Dollar Tree | |||||||||||
| The Shops at Suffolk Downs | 2005 | 121,187 | 98.8 | % | 14.18 | Stop & Shop | Dollar Tree |
CEDAR REALTY TRUST, INC.
Real Estate Summary (Continued)
As of September 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 | % | 10.19 | 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 | 1,112,266 | 85.6 | % | 14.06 | |||||||
| New Jersey | |||||||||||
| Pine Grove Plaza | 2003 | 86,089 | 51.9 | % | 15.34 | Dollar Tree | |||||
| The Shops at Bloomfield Station | 2016 | 63,844 | 84.1 | % | 19.23 | Super Foodtown | |||||
| Washington Center Shoppes | 2001 | 157,300 | 93.4 | % | 11.38 | Acme Markets | Planet Fitness | ||||
| Total New Jersey | 307,233 | 79.8 | % | 13.82 | |||||||
| New York | |||||||||||
| Carman's Plaza | 2007 | 195,485 | 58.9 | % | 21.97 | Key Foods | Department of Motor Vehicle | ||||
| Popcorn Beauty | |||||||||||
| Dollar Tree | |||||||||||
| Pennsylvania | |||||||||||
| Academy Plaza | 2001 | 137,415 | 91.9 | % | 15.61 | Acme Markets | Rite Aid | ||||
| Camp Hill | 2002 | 430,198 | 96.9 | % | 14.74 | Giant Foods | Boscov's | ||||
| LA Fitness | |||||||||||
| Barnes & Noble | |||||||||||
| Staples | |||||||||||
| Colonial Commons | 2011 | 410,432 | 93.9 | % | 13.56 | 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 | 127,265 | 89.6 | % | 17.63 | 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 | % | 13.22 | LA Fitness | |||||
| Marshalls | |||||||||||
| Staples | |||||||||||
| Immunotek | |||||||||||
| Walgreens | |||||||||||
| Dollar Tree | |||||||||||
| Halifax Plaza | 2003 | 51,510 | 100.0 | % | 13.60 | Giant Foods | Rite Aid | ||||
| Hamburg Square | 2004 | 102,058 | 96.7 | % | 6.50 | Redner's | Chesaco RV | ||||
| Lawndale Plaza | 2015 | 92,773 | 100.0 | % | 18.68 | Shop Rite | |||||
| Meadows Marketplace | 2004/2012 | 91,518 | 91.3 | % | 15.55 | Giant Foods | |||||
| Newport Plaza | 2003 | 64,489 | 100.0 | % | 12.85 | Giant Foods | Rite Aid | ||||
| Northside Commons | 2008 | 69,136 | 100.0 | % | 10.41 | Redner's | Dollar Tree | ||||
| Palmyra Shopping Center | 2005 | 111,051 | 90.6 | % | 7.76 | Weis Markets | Goodwill |
CEDAR REALTY TRUST, INC.
Real Estate Summary (Continued)
As of September 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 | 89.3 | % | 14.79 | BJ's Wholesale Club | Home Depot | ||||
| Planet Fitness | |||||||||||
| Staples | |||||||||||
| PetSmart | |||||||||||
| Walgreens | |||||||||||
| Riverview Plaza | 2003 | 191,622 | 85.5 | % | 20.65 | United Artists | |||||
| Pep Boys | |||||||||||
| Staples | |||||||||||
| South Philadelphia | 2003 | 193,085 | 76.3 | % | 11.78 | Shop Rite | Ross Dress For Less | ||||
| LA Fitness | |||||||||||
| Kid City | |||||||||||
| Swede Square | 2003 | 100,809 | 97.0 | % | 16.50 | LA Fitness | |||||
| The Point | 2000 | 262,072 | 87.0 | % | 14.71 | Giant Foods | Burlington | ||||
| Barton's Home Outlet | |||||||||||
| Staples | |||||||||||
| Dollar Tree | |||||||||||
| Trexler Mall | 2005 | 336,687 | 98.2 | % | 10.72 | Kohl's | |||||
| Lehigh Wellness Partners | |||||||||||
| Maxx Fitness | |||||||||||
| Marshalls | |||||||||||
| Home Goods | |||||||||||
| Dollar Tree | |||||||||||
| Trexlertown Plaza | 2006 | 325,171 | 94.5 | % | 14.25 | Giant Foods | Hobby Lobby | ||||
| Burlington | |||||||||||
| Big Lots | |||||||||||
| Tractor Supply | |||||||||||
| Total Pennsylvania | 4,050,772 | 92.4 | % | 14.09 | |||||||
| Virginia | |||||||||||
| Coliseum Marketplace | 2005 | 106,648 | 100.0 | % | 17.20 | Kroger | Michaels | ||||
| Elmhurst Square | 2006 | 66,254 | 85.7 | % | 9.56 | Food Lion | |||||
| General Booth Plaza | 2005 | 71,639 | 100.0 | % | 15.30 | Food Lion | |||||
| Kempsville Crossing | 2005 | 79,512 | 93.1 | % | 12.08 | Walmart | The Iron Asylum | ||||
| Oak Ridge Shopping Center | 2006 | 38,700 | 100.0 | % | 11.05 | Food Lion | |||||
| Total Virginia | 362,753 | 95.9 | % | 13.79 | |||||||
| Total (89.8% leased at September 30, 2020) | 8,185,617 | 88.8 | % | $ | 14.05 | ||||||
| (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 September 30, 2020
| Percentage | Percentage | Q3-2020 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 2,337,000 | 32.1 | % | $ | 28,831,000 | 28.2 | % | 99.9 | % | ||||
| Limited/Fast Service Restaurants | Panera Bread, Subway, Dunkin, McDonalds, Chipotle | 276,000 | 3.8 | % | 7,417,000 | 7.3 | % | 91.9 | % | |||||
| Fitness | LA Fitness, Planet Fitness | 450,000 | 6.2 | % | 5,502,000 | 5.4 | % | 72.0 | % | |||||
| Full Service Restaurants | Chili's, Red Lobster, Busboys and Poets | 228,000 | 3.1 | % | 5,114,000 | 5.0 | % | 62.6 | % | |||||
| Dollar/Variety | Dollar Tree, Big Lots, Five Below | 484,000 | 6.7 | % | 4,759,000 | 4.7 | % | 97.5 | % | |||||
| Medical, Dental and Optical | Medical Centers, Urgent Care, Physical Therapy, Dentists, Optical | 215,000 | 3.0 | % | 4,587,000 | 4.5 | % | 92.2 | % | |||||
| Discount Department Stores | Marshalls, Kohl's, Burlington, Ross Dress For Less, TJ Maxx | 652,000 | 9.0 | % | 4,485,000 | 4.4 | % | 89.0 | % | |||||
| Personal Care | Nail Salons, Hair Salons, Spas | 148,000 | 2.0 | % | 3,581,000 | 3.5 | % | 87.2 | % | |||||
| Home Improvement/ Hardware | Home Depot, Tractor Supply | 366,000 | 5.0 | % | 2,886,000 | 2.8 | % | 100.0 | % | |||||
| Banking | Santander Bank, Wells Fargo, Bank of America, Middlesex Savings Bank | 84,000 | 1.2 | % | 2,654,000 | 2.6 | % | 99.0 | % | |||||
| Wireless and Gaming | AT&T Mobility, T-Mobile, Verizon Wireless, GameStop | 95,000 | 1.3 | % | 2,485,000 | 2.4 | % | 94.6 | % | |||||
| Pharmacy/Drug Store | Rite Aid, Walgreens, CVS | 92,000 | 1.3 | % | 2,286,000 | 2.2 | % | 98.1 | % | |||||
| Office Supply | Staples, The UPS Store | 120,000 | 1.7 | % | 2,115,000 | 2.1 | % | 95.3 | % | |||||
| Beer, Wine and Liquor | Beer, Wine and Liquor Stores | 116,000 | 1.6 | % | 2,088,000 | 2.0 | % | 92.8 | % | |||||
| Governmental Office | District of Columbia, Department of Motor Vehicle, USPS | 74,000 | 1.0 | % | 1,898,000 | 1.9 | % | 99.9 | % | |||||
| Clothing | Old Navy, Carter's, Madrag | 112,000 | 1.5 | % | 1,819,000 | 1.8 | % | 74.5 | % | |||||
| Movie Theatre | United Artists, Gardner Theater | 105,000 | 1.4 | % | 1,735,000 | 1.7 | % | 4.2 | % | |||||
| Home Furnishing | Homegoods, Mattress Firm | 158,000 | 2.2 | % | 1,669,000 | 1.6 | % | 92.8 | % | |||||
| Automotive Parts and Service | Pep Boys, Advance Auto Parts, AutoZone, Mavis | 128,000 | 1.8 | % | 1,630,000 | 1.6 | % | 99.0 | % | |||||
| Pet | PetSmart, Pet Valu, Pet Supplies Plus | 106,000 | 1.5 | % | 1,554,000 | 1.5 | % | 96.9 | % | |||||
| Hobby Stores | Michaels, Hobby Lobby, JoAnn Fabrics | 155,000 | 2.1 | % | 1,544,000 | 1.5 | % | 96.2 | % | |||||
| Shoes | Famous Footwear, Shoe City | 72,000 | 1.0 | % | 1,469,000 | 1.4 | % | 96.9 | % | |||||
| Non-Retail | Various office tenants | 81,000 | 1.1 | % | 1,435,000 | 1.4 | % | 94.1 | % | |||||
| Sporting and Outdoor Stores | Dicks, NAMCO Pools | 95,000 | 1.3 | % | 1,343,000 | 1.3 | % | 95.7 | % | |||||
| Beauty Supplies | Sally Beauty, Popcorn Beauty, Ulta | 52,000 | 0.7 | % | 1,290,000 | 1.3 | % | 99.4 | % | |||||
| Other | Professional Services, Thrift Stores, Cleaners, Education, Books and Other | 471,000 | 6.5 | % | 5,978,000 | 5.9 | % | 87.3 | % | |||||
| 7,272,000 | 100.0 | % | $ | 102,154,000 | 100.0 | % | 91.0 | % |
CEDAR REALTY TRUST, INC.
Tenant Concentration (Based on Annualized Base Rent)
As of September 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 | 6.6 | % | $ | 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 | % | 2,430,000 | 10.85 | 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 | % | 1,812,000 | 17.09 | 1.8 | % | ||||||
| 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 | 1.0 | % | 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 | % | ||||||
| Home Goods | 4 | 105,000 | 1.3 | % | 962,000 | 9.16 | 0.9 | % | ||||||
| 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 | % | ||||||
| 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 | % | ||||||
| CVS | 2 | 20,000 | 0.2 | % | 783,000 | 39.15 | 0.8 | % | ||||||
| Burlington Coat Factory | 2 | 84,000 | 1.0 | % | 760,000 | 9.05 | 0.7 | % | ||||||
| Sub-total top twenty-five tenants | 91 | 3,491,000 | 42.7 | % | 44,987,000 | 12.89 | 44.0 | % | ||||||
| Remaining tenants | 705 | 3,781,000 | 46.2 | % | 57,167,000 | 15.12 | 56.0 | % | ||||||
| Sub-total all tenants (b) | 796 | 7,272,000 | 88.8 | % | $ | 102,154,000 | $ | 14.05 | 100.0 | % | ||||
| Vacant space | N/A | 913,000 | 11.2 | % | ||||||||||
| Total | 796 | 8,185,000 | 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 | 5,366,000 | 73.8 | % | $ | 60,986,000 | $ | 11.37 | 59.7 | % | |||
| Spaces < 10,000 GLA | 1,906,000 | 26.2 | % | 41,168,000 | 21.58 | 40.3 | % | |||||
| Total | 7,272,000 | 100.0 | % | $ | 102,154,000 | $ | 14.05 | 100.0 | % |
CEDAR REALTY TRUST, INC.
Lease Expirations
As of September 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 | 55 | 244,000 | 3.4 | % | $ | 18.19 | 4.3 | % | ||||
| 2020 | 16 | 99,000 | 1.4 | % | 23.49 | 2.3 | % | |||||
| 2021 | 121 | 665,000 | 9.1 | % | 16.19 | 10.5 | % | |||||
| 2022 | 103 | 543,000 | 7.5 | % | 16.93 | 9.0 | % | |||||
| 2023 | 83 | 595,000 | 8.2 | % | 14.60 | 8.5 | % | |||||
| 2024 | 95 | 783,000 | 10.8 | % | 14.79 | 11.3 | % | |||||
| 2025 | 100 | 1,203,000 | 16.5 | % | 13.41 | 15.8 | % | |||||
| 2026 | 43 | 398,000 | 5.5 | % | 14.78 | 5.8 | % | |||||
| 2027 | 39 | 322,000 | 4.4 | % | 14.20 | 4.5 | % | |||||
| 2028 | 34 | 358,000 | 4.9 | % | 11.47 | 4.0 | % | |||||
| 2029 | 38 | 670,000 | 9.2 | % | 13.05 | 8.6 | % | |||||
| Thereafter | 69 | 1,392,000 | 19.1 | % | 11.29 | 15.4 | % | |||||
| All tenants | 796 | 7,272,000 | 100.0 | % | $ | 14.05 | 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 | 111,000 | 2.1 | % | $ | 15.91 | 2.9 | % | ||||
| 2020 | 2 | 53,000 | 1.0 | % | 22.92 | 2.0 | % | |||||
| 2021 | 11 | 375,000 | 7.0 | % | 11.43 | 7.0 | % | |||||
| 2022 | 12 | 267,000 | 5.0 | % | 13.59 | 5.9 | % | |||||
| 2023 | 13 | 417,000 | 7.8 | % | 11.20 | 7.7 | % | |||||
| 2024 | 19 | 587,000 | 10.9 | % | 11.65 | 11.2 | % | |||||
| 2025 | 26 | 926,000 | 17.3 | % | 11.30 | 17.2 | % | |||||
| 2026 | 11 | 296,000 | 5.5 | % | 11.55 | 5.6 | % | |||||
| 2027 | 11 | 219,000 | 4.1 | % | 11.86 | 4.3 | % | |||||
| 2028 | 10 | 280,000 | 5.2 | % | 9.27 | 4.3 | % | |||||
| 2029 | 14 | 583,000 | 10.9 | % | 12.11 | 11.6 | % | |||||
| Thereafter | 24 | 1,252,000 | 23.3 | % | 9.93 | 20.4 | % | |||||
| All tenants | 156 | 5,366,000 | 100.0 | % | $ | 11.37 | 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 | 52 | 133,000 | 7.0 | % | $ | 20.09 | 6.5 | % | ||||
| 2020 | 14 | 46,000 | 2.4 | % | 24.15 | 2.7 | % | |||||
| 2021 | 110 | 290,000 | 15.2 | % | 22.34 | 15.7 | % | |||||
| 2022 | 91 | 276,000 | 14.5 | % | 20.17 | 13.5 | % | |||||
| 2023 | 70 | 178,000 | 9.3 | % | 22.55 | 9.8 | % | |||||
| 2024 | 76 | 196,000 | 10.3 | % | 24.18 | 11.5 | % | |||||
| 2025 | 74 | 277,000 | 14.5 | % | 20.47 | 13.8 | % | |||||
| 2026 | 32 | 102,000 | 5.4 | % | 24.16 | 6.0 | % | |||||
| 2027 | 28 | 103,000 | 5.4 | % | 19.19 | 4.8 | % | |||||
| 2028 | 24 | 78,000 | 4.1 | % | 19.40 | 3.7 | % | |||||
| 2029 | 24 | 87,000 | 4.6 | % | 19.34 | 4.1 | % | |||||
| Thereafter | 45 | 140,000 | 7.3 | % | 23.41 | 8.0 | % | |||||
| All tenants | 640 | 1,906,000 | 100.0 | % | $ | 21.58 | 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 | |||||||||||||
| 3rd Quarter 2020 | 32 | 240,100 | $ | 11.27 | $ | 11.06 | 1.9% | $ | 4.24 | 6.9 | |||
| 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 | |||
| Total | 122 | 1,016,500 | $ | 13.58 | $ | 13.56 | 0.2% | $ | 6.51 | 6.0 | |||
| New Leases - Comparable | |||||||||||||
| 3rd Quarter 2020 | 8 | 72,800 | $ | 9.07 | $ | 7.46 | 21.5% | $ | 13.99 | 9.1 | |||
| 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 | |||
| Total | 36 | 198,300 | $ | 12.47 | $ | 13.36 | -6.6% | $ | 29.94 | 8.7 | |||
| Renewals - Comparable | |||||||||||||
| 3rd Quarter 2020 | 24 | 167,300 | $ | 12.23 | $ | 12.63 | -3.1% | $ | 0.00 | 5.9 | |||
| 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 | |||
| Total | 86 | 818,200 | $ | 13.85 | $ | 13.61 | 1.8% | $ | 0.83 | 5.4 | |||
| Total Comparable and Non-Comparable | |||||||||||||
| 3rd Quarter 2020 | 33 | 249,200 | $ | 11.32 | N/A | N/A | $ | 5.33 | 6.8 | ||||
| 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 | ||||
| Total | 125 | 1,038,100 | $ | 13.73 | N/A | N/A | $ | 7.35 | 6.0 | ||||
| (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 September 30, | Nine months ended September 30, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Base Rents | $ | 19,054,000 | $ | 20,365,000 | $ | 56,795,000 | $ | 60,509,000 | ||||
| Expense Recoveries | 5,816,000 | 6,150,000 | 17,437,000 | 19,105,000 | ||||||||
| Total Revenues | 24,870,000 | 26,515,000 | 74,232,000 | 79,614,000 | ||||||||
| Operating expenses | 8,225,000 | 8,205,000 | 24,791,000 | 25,636,000 | ||||||||
| Same-Property NOI | $ | 16,645,000 | $ | 18,310,000 | $ | 49,441,000 | $ | 53,978,000 | ||||
| Occupied | 90.5% | 91.1% | 90.4% | 91.0% | ||||||||
| Leased | 91.7% | 92.9% | 91.6% | 92.9% | ||||||||
| Average base rent | $ | 13.66 | $ | 13.71 | $ | 13.64 | $ | 13.71 | ||||
| Number of same properties | 46 | 46 | 45 | 45 | ||||||||
| Same-Property NOI growth | -9.1% | -8.4% | ||||||||||
| Same-Property NOI Reconciliation (a) | Three months ended September 30, | Nine months ended September 30, | ||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Operating income | $ | 7,062,000 | $ | 8,980,000 | $ | 10,150,000 | $ | 29,348,000 | ||||
| Add (deduct): | ||||||||||||
| General and administrative | 3,925,000 | 4,886,000 | 12,833,000 | 15,102,000 | ||||||||
| Gain on sales | (679,000 | ) | - | (679,000 | ) | (2,942,000 | ) | |||||
| Impairment charges | - | - | 7,607,000 | - | ||||||||
| Depreciation and amortization | 10,035,000 | 10,547,000 | 38,208,000 | 31,022,000 | ||||||||
| Straight-line rents | 277,000 | (76,000 | ) | 1,222,000 | (411,000 | ) | ||||||
| Amortization of intangible lease liabilities | (299,000 | ) | (990,000 | ) | (1,065,000 | ) | (2,212,000 | ) | ||||
| Other adjustments | 165,000 | (61,000 | ) | (341,000 | ) | (434,000 | ) | |||||
| NOI related to properties not defined as same-property | (3,841,000 | ) | (4,976,000 | ) | (18,494,000 | ) | (15,495,000 | ) | ||||
| Same-Property NOI | $ | 16,645,000 | $ | 18,310,000 | $ | 49,441,000 | $ | 53,978,000 | ||||
| (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 Dispositions and Real Estate Held For Sale
As of September 30, 2020
| Date | Sales | ||||||
|---|---|---|---|---|---|---|---|
| Dispositions | GLA | Sold | Price | ||||
| Metro Square | 71,896 | 7/9/2020 | $ | 4,288,000 | |||
| Oakland Mills outparcel building | 2,300 | 9/17/2020 | $ | 1,050,000 | |||
| 74,196 | $ | 5,338,000 | |||||
| Average | |||||||
| Percent | base rent per | ||||||
| Real Estate Held for Sale | GLA | occupied | leased sq. ft. | ||||
| Carll's Corner | 129,582 | 27.5 | % | $ | 12.72 | ||
| Glen Allen Shopping Center (a) | 63,328 | 100.0 | % | $ | 7.71 | ||
| Suffolk Plaza | 67,216 | 100.0 | % | $ | 10.90 | ||
| The Commons | 203,309 | 59.2 | % | $ | 7.04 | ||
| 463,435 | 61.8 | % | $ | 8.80 | |||
| (a) Property sold for 8.5 million on October 8, 2020. |
All values are in US Dollars.
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.
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