Cedar Realty Trust Reports Fourth Quarter And Full Year 2015 Results
PORT WASHINGTON, N.Y., Feb. 18, 2016 /PRNewswire/ -- Cedar Realty Trust, Inc. (the Company) (NYSE: CDR) today reported financial and operating results for the fourth quarter and year ended December 31, 2015.
Operating Highlights
- Operating funds from operations (Operating FFO) of $0.14 per diluted share for the quarter and $0.54 for the year
- Same-property net operating income (NOI) for the quarter increased 2.5% including redevelopments and 2.4% excluding redevelopments. Same property NOI for the year increased 2.8% including redevelopments and 1.9% excluding redevelopments
- Signed 36 new and renewal leases for 415,100 square feet in the quarter and 140 new and renewal leases for 1.1 million square feet for the year
- Comparable cash-basis lease spreads of 12.0% for the quarter and 9.5% for the year
- Total portfolio 91.5% leased and same-property portfolio 92.8% leased at year-end
- Completed $91.5 million of acquisitions during the year
- Provided initial 2016 Operating FFO guidance of $0.53 to $0.56 per diluted share
"We are pleased with our 2015 financial and operating results," commented Bruce Schanzer, President and CEO. "Further, we are excited about the continued progress of our capital migration activities that provide a foundation to create and grow long-term shareholder value."
Financial Results
Operating FFO for the fourth quarter of 2015 was $12.3 million or $0.14 per diluted share, compared to $10.3 million or $0.13 per diluted share for the same period in 2014. Operating FFO for the full year 2015 was $46.4 million or $0.54 per diluted share, compared to $42.5 million or $0.54 per diluted share for the same period in 2014. NAREIT-defined FFO (FFO) for the fourth quarter of 2015 was $11.6 million or $0.14 per diluted share, compared to $9.6 million or $0.12 per diluted share for the same period in 2014. FFO for the full year 2015 was $45.1 million or $0.53 per diluted share, compared to $40.3 million or $0.51 per diluted share for the same period in 2014. The principal differences between Operating FFO and FFO are acquisition costs and debt extinguishment amounts.
Net income attributable to common shareholders for the fourth quarter of 2015 was $3.4 million or $0.04 per diluted share, compared to $0.7 million or $0.01 per diluted share for the same period in 2014. Net income attributable to common shareholders for the full year 2015 was $7.7 million or $0.09 per diluted share, compared to $14.6 million or $0.18 per diluted share for the same period in 2014.
Portfolio Results
Same-property NOI for the quarter increased 2.5% including redevelopments and 2.4% excluding redevelopments. Same property NOI for the year increased 2.8% including redevelopments and 1.9% excluding redevelopments.
During the fourth quarter of 2015, the Company signed 36 leases for 415,100 square feet. On a comparable space basis, the Company leased 387,000 square feet at a positive lease spread of 12.0% on a cash basis (new leases increased 7.1% and renewals increased 13.0%). During the full year 2015, the Company signed 140 leases for 1.1 million square feet. On a comparable space basis, the Company leased 963,500 square feet at a positive lease spread of 9.5% on a cash basis (new leases increased 8.7% and renewals increased 9.7%).
The Company's total portfolio, excluding properties held for sale, was 91.5% leased at December 31, 2015, compared to 93.3% at September 30, 2015 and 93.3% at December 31, 2014. The Company's same-property portfolio was 92.8% leased at December 31, 2015, compared to 93.3% at September 30, 2015 and 93.8% at December 31, 2014. The decrease in leased percentages during the fourth quarter of 2015 are the result of four recently vacated anchor spaces
Acquisitions and Dispositions
During the fourth quarter, the Company acquired East River Park for $39.0 million. For the full year, the Company also acquired Lawndale Plaza for $25.2 million, acquired the remaining 60% interest in New London Mall for $27.3 million and sold three lower quartile properties for aggregate proceeds of $6.3 million. Subsequent to December 31, 2015, the Company sold Liberty Marketplace on February 11, 2016 for $15.0 million.
Balance Sheet
As of December 31, 2015, the Company had $182.0 million available under its revolving credit facility and reported net debt to earnings before interest, taxes, depreciations, and amortization (EBITDA) of 7.2 times. Additionally, during 2015, the Company repaid approximately $110 million of secured mortgage debt, primarily with proceeds from $100 million of unsecured term loans which closed in February 2015.
2016 Guidance
The Company's initial 2016 financial, operating and transactional guidance is as follows:
|
Operating FFO per diluted share |
$0.53 to $0.56 |
|
NAREIT-defined FFO per diluted share |
$0.50 to $0.53 |
|
Same-property NOI growth |
1% to 2% |
|
Same-property NOI growth excluding the recently vacated anchor spaces |
2% to 3% |
|
Reduction in NOI from recently vacated anchor spaces |
$2 million |
|
Acquisitions |
$40 million |
|
Dispositions |
$110 million |
The principal difference between initial 2016 Operating FFO and NAREIT-defined FFO guidance is acquisition costs.
Non-GAAP Financial Measures
NAREIT-defined FFO (FFO) is a widely-recognized non-GAAP financial measure for REITs that the Company believes, when considered with financial statements prepared in accordance with GAAP, is useful in understanding financial performance and provides a relevant basis for comparison among REITs. The Company also presents Operating Funds From Operations (Operating FFO), which excludes certain items that are not indicative of the operating results provided by the Company's core portfolio and that affect the comparability of the Company's period-over-period performance. FFO and Operating FFO should not be considered as alternatives to net income attributable to common shareholders, the most directly comparable GAAP financial measure. A reconciliation of net income attributable to common shareholders to FFO and Operating FFO for the three months and full year ended December 31, 2015 and 2014 is detailed in the attached schedule.
Supplemental Financial Information Package
The Company has issued Supplemental Financial Information for the period ended December 31, 2015. 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/Webcast
The Company will host a conference call today, February 18, 2016, at 5:00 PM (ET) to discuss the fourth quarter and full year 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 February 18, 2016 until midnight (ET) on March 3, 2016. The replay dial-in numbers are (877) 870-5176 or (1) (858) 384-5517 for international callers. Please use passcode 13627975 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 and operation of primarily grocery-anchored shopping centers straddling the Washington D.C. to Boston corridor. At December 31, 2015, the Company's portfolio (excluding properties treated as "held for sale") comprised 60 properties, with approximately 9.5 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
Statements made in this press release that are not strictly historical are "forward-looking" statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance and outcomes to differ materially from those expressed or implied in forward-looking statements. Factors which could cause actual results to differ materially from current expectations include, among others: adverse general economic conditions in the United States and uncertainty in the credit and retail markets; financing risks, such as the inability to obtain new financing or refinancing on favorable terms as the result of market volatility or instability; risks related to the market for retail space generally, including reductions in consumer spending, variability in retailer demand for leased space, tenant bankruptcies, adverse impact of internet sales demand, ongoing consolidation in the retail sector and changes in economic conditions and consumer confidence; risks endemic to real estate and the real estate industry generally; the impact of the Company's level of indebtedness on operating performance; inability of tenants to meet their rent and other lease obligations; adverse impact of new technology and e-commerce developments on the Company's tenants; competitive risk; risks related to the geographic concentration of the Company's properties in the Washington D.C. to Boston corridor; the effects of natural and other disasters; and the inability of the Company to realize anticipated returns from its redevelopment activities. Please refer to the documents filed by Cedar Realty Trust, Inc. with the SEC, specifically the Company's most recent Annual Report on Form 10-K, which identify additional risk factors that could cause actual results to differ from those contained in forward-looking statements.
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CEDAR REALTY TRUST, INC. |
|||||
|
Condensed Consolidated Balance Sheets |
|||||
|
(unaudited) |
|||||
|
December 31, |
|||||
|
2015 |
2014 |
||||
|
ASSETS |
|||||
|
Real estate, at cost |
$ 1,550,027,000 |
$ 1,476,173,000 |
|||
|
Less accumulated depreciation |
(300,832,000) |
(267,211,000) |
|||
|
Real estate, net |
1,249,195,000 |
1,208,962,000 |
|||
|
Real estate held for sale |
14,402,000 |
16,508,000 |
|||
|
Cash and cash equivalents |
2,083,000 |
3,499,000 |
|||
|
Restricted cash |
5,592,000 |
7,859,000 |
|||
|
Receivables |
17,912,000 |
18,405,000 |
|||
|
Other assets and deferred charges, net |
32,398,000 |
31,546,000 |
|||
|
TOTAL ASSETS |
$ 1,321,582,000 |
$ 1,286,779,000 |
|||
|
LIABILITIES AND EQUITY |
|||||
|
Liabilities: |
|||||
|
Mortgage loans payable |
$ 299,022,000 |
$ 393,388,000 |
|||
|
Unsecured revolving credit facility |
78,000,000 |
72,000,000 |
|||
|
Unsecured term loans |
300,000,000 |
200,000,000 |
|||
|
Accounts payable and accrued liabilities |
23,831,000 |
22,364,000 |
|||
|
Unamortized intangible lease liabilities |
23,187,000 |
23,776,000 |
|||
|
Total liabilities |
724,040,000 |
711,528,000 |
|||
|
Noncontrolling interest - limited partners' mezzanine OP Units |
- |
396,000 |
|||
|
Equity: |
|||||
|
Preferred stock |
190,661,000 |
190,661,000 |
|||
|
Common stock and other shareholders' equity |
405,389,000 |
378,891,000 |
|||
|
Noncontrolling interests |
1,492,000 |
5,303,000 |
|||
|
Total equity |
597,542,000 |
574,855,000 |
|||
|
TOTAL LIABILITIES AND EQUITY |
$ 1,321,582,000 |
$ 1,286,779,000 |
|||
|
CEDAR REALTY TRUST, INC. |
|||||||||
|
Condensed Consolidated Statements of Operations |
|||||||||
|
(unaudited) |
|||||||||
|
Three months ended December 31, |
Years ended December 31, |
||||||||
|
2015 |
2014 |
2015 |
2014 |
||||||
|
PROPERTY REVENUES |
|||||||||
|
Rents |
$ 29,372,000 |
$ 28,803,000 |
$ 116,739,000 |
$ 116,505,000 |
|||||
|
Expense recoveries |
7,947,000 |
7,826,000 |
31,834,000 |
31,392,000 |
|||||
|
Other |
411,000 |
36,000 |
634,000 |
287,000 |
|||||
|
Total property revenues |
37,730,000 |
36,665,000 |
149,207,000 |
148,184,000 |
|||||
|
PROPERTY OPERATING EXPENSES |
|||||||||
|
Operating, maintenance and management |
6,329,000 |
6,321,000 |
25,401,000 |
26,604,000 |
|||||
|
Real estate and other property-related taxes |
4,820,000 |
4,485,000 |
19,189,000 |
18,182,000 |
|||||
|
Total property operating expenses |
11,149,000 |
10,806,000 |
44,590,000 |
44,786,000 |
|||||
|
PROPERTY OPERATING INCOME |
26,581,000 |
25,859,000 |
104,617,000 |
103,398,000 |
|||||
|
OTHER EXPENSES AND INCOME |
|||||||||
|
General and administrative |
3,737,000 |
3,736,000 |
15,004,000 |
14,356,000 |
|||||
|
Acquisition costs |
739,000 |
- |
1,238,000 |
2,870,000 |
|||||
|
Depreciation and amortization |
9,723,000 |
9,894,000 |
38,594,000 |
38,700,000 |
|||||
|
Gain on sales |
- |
(271,000) |
- |
(6,413,000) |
|||||
|
Impairment (reversals) / charges |
(1,318,000) |
85,000 |
(212,000) |
3,148,000 |
|||||
|
Total other expenses and income |
12,881,000 |
13,444,000 |
54,624,000 |
52,661,000 |
|||||
|
OPERATING INCOME |
13,700,000 |
12,415,000 |
49,993,000 |
50,737,000 |
|||||
|
NON-OPERATING INCOME AND EXPENSES |
|||||||||
|
Interest expense |
(6,860,000) |
(7,890,000) |
(28,272,000) |
(32,301,000) |
|||||
|
Early extinguishment of debt costs |
- |
(675,000) |
(105,000) |
(825,000) |
|||||
|
Total non-operating income and expense |
(6,860,000) |
(8,565,000) |
(28,377,000) |
(33,126,000) |
|||||
|
INCOME FROM CONTINUING OPERATIONS |
6,840,000 |
3,850,000 |
21,616,000 |
17,611,000 |
|||||
|
DISCONTINUED OPERATIONS |
|||||||||
|
Income from operations |
- |
68,000 |
12,000 |
1,647,000 |
|||||
|
Impairment reversals |
- |
363,000 |
153,000 |
47,000 |
|||||
|
Gain on extinguishment of debt obligations |
- |
- |
- |
1,423,000 |
|||||
|
Gain on sales |
- |
- |
- |
7,963,000 |
|||||
|
Total income from discontinued operations |
- |
431,000 |
165,000 |
11,080,000 |
|||||
|
NET INCOME |
6,840,000 |
4,281,000 |
21,781,000 |
28,691,000 |
|||||
|
Attributable to noncontrolling interests |
118,000 |
69,000 |
365,000 |
290,000 |
|||||
|
NET INCOME ATTRIBUTABLE TO CEDAR REALTY TRUST, INC. |
6,958,000 |
4,350,000 |
22,146,000 |
28,981,000 |
|||||
|
Preferred stock dividends |
(3,602,000) |
(3,602,000) |
(14,408,000) |
(14,408,000) |
|||||
|
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ 3,356,000 |
$ 748,000 |
$ 7,738,000 |
$ 14,573,000 |
|||||
|
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND DILUTED) |
|||||||||
|
Continuing operations |
$ 0.04 |
$ 0.00 |
$ 0.09 |
$ 0.04 |
|||||
|
Discontinued operations |
0.00 |
0.01 |
0.00 |
0.14 |
|||||
|
$ 0.04 |
$ 0.01 |
$ 0.09 |
$ 0.18 |
||||||
|
Weighted average number of common shares - basic and diluted |
81,620,000 |
75,547,000 |
81,356,000 |
75,311,000 |
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|
CEDAR REALTY TRUST, INC. |
||||||||
|
Reconciliation of Net Income Attributable to Common Shareholders to Funds From Operations |
||||||||
|
and Operating Funds From Operations |
||||||||
|
(unaudited) |
||||||||
|
Three months ended December 31, |
Years ended December 31, |
|||||||
|
2015 |
2014 |
2015 |
2014 |
|||||
|
Net income attributable to common shareholders |
$ 3,356,000 |
$ 748,000 |
$ 7,738,000 |
$ 14,573,000 |
||||
|
Real estate depreciation and amortization |
9,678,000 |
9,812,000 |
38,354,000 |
38,365,000 |
||||
|
Limited partners' interest |
9,000 |
4,000 |
28,000 |
80,000 |
||||
|
Impairment (reversals) / charges |
(1,318,000) |
(278,000) |
(365,000) |
3,101,000 |
||||
|
Gain on sales |
- |
(271,000) |
- |
(14,376,000) |
||||
|
Consolidated minority interests: |
||||||||
|
Share of loss |
(127,000) |
(73,000) |
(393,000) |
(370,000) |
||||
|
Share of FFO |
(20,000) |
(293,000) |
(258,000) |
(1,100,000) |
||||
|
Funds From Operations ("FFO") applicable to |
11,578,000 |
9,649,000 |
45,104,000 |
40,273,000 |
||||
|
Adjustments for items affecting comparability: |
||||||||
|
Acquisition costs |
739,000 |
- |
1,238,000 |
2,870,000 |
||||
|
Early extinguishment of debt costs |
- |
675,000 |
105,000 |
825,000 |
||||
|
Gain on extinguishment of debt obligations |
- |
- |
- |
(1,423,000) |
||||
|
Operating Funds From Operations ("Operating FFO") applicable |
||||||||
|
to diluted common shares |
$ 12,317,000 |
$ 10,324,000 |
$ 46,447,000 |
$ 42,545,000 |
||||
|
FFO per diluted common share: |
$ 0.14 |
$ 0.12 |
$ 0.53 |
$ 0.51 |
||||
|
Operating FFO per diluted common share: |
$ 0.14 |
$ 0.13 |
$ 0.54 |
$ 0.54 |
||||
|
Weighted average number of diluted common shares: |
||||||||
|
Common shares |
85,049,000 |
79,213,000 |
84,850,000 |
78,985,000 |
||||
|
OP Units |
352,000 |
393,000 |
378,000 |
433,000 |
||||
|
85,401,000 |
79,606,000 |
85,228,000 |
79,418,000 |
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cedar-realty-trust-reports-fourth-quarter-and-full-year-2015-results-300222427.html
SOURCE Cedar Realty Trust, Inc.
Released February 18, 2016