Exhibit
99.1
FOR IMMEDIATE RELEASE
Contact Information:
Cedar Shopping Centers, Inc.
Leo S. Ullman, Chairman, CEO and President
(516) 944-4525
lsu@cedarshoppingcenters.com
CEDAR SHOPPING CENTERS INC. ANNOUNCES SECOND QUARTER 2007 RESULTS
Port Washington, New York — August 6, 2007 — Cedar Shopping Centers, Inc. (NYSE: CDR) today
reported its financial results for the quarter ended June 30, 2007.
Second Quarter Highlights
| • |
|
Net income applicable to common shareholders after deduction
of a one-time charge, as previously disclosed, of $0.03 per share relating primarily to retirement compensation paid to the Company’s former CFO, increased 37% to
$2.9 million or $0.07 per share. |
| • |
|
Funds from Operations (“FFO”) were $0.28 per
share/OP unit, which is after the one-time charge of $0.03 per
share/OP unit. |
| • |
|
Net cash flows provided by operating activities increased 43% to $24.9 million for the six months ended June 30, 2007. |
| • |
|
Total debt as a percentage of total market capitalization was approximately 47% at a weighted average interest rate of
5.8%. |
| • |
|
Total assets increased 10% to $1.38 billion from $1.25 billion as of December 31, 2006. |
| • |
|
Occupancy for the Company’s stabilized portfolio was approximately 96%; total portfolio occupancy including development
and redevelopment properties was 93%. |
| • |
|
Availability under the Company’s secured revolving credit facility was $140 million as of June 30, 2007. |
Leo Ullman, CEO, stated, “Our second quarter and year-to-date 2007 results reflect our Company’s
commitment to the execution of our operating plans. Our portfolio of excellent properties in areas
of modest competition with substantial barriers to entry and our development/redevelopment pipeline
continues to build long-term value for our shareholders. We continue to be disciplined in our
approach to development activities and acquisitions in the current market environment.”
Mr. Ullman concluded, “Our results do not yet reflect the benefits of substantial embedded growth
and income enhancement opportunities of our development/redevelopment properties. Over the next 18
to 24 months, we expect to unlock that value using our proven capabilities.”
Financial and Operating Results
Cedar’s total revenues for the second quarter ended June 30, 2007 increased 22% to $36.6 million
from $30.0 million for the second quarter ended June 30, 2006. Net income applicable to common
shareholders increased 37% to $2.9 million, or $0.07 per share, as compared to $2.1 million, or
$0.07 per share, for the quarter ended June 30, 2006. FFO increased 28% to $12.8 million, or $0.28
per share/OP unit, as compared to $10.0 million, or $0.31 per share/OP unit for the quarter ended
June 30, 2006. Net income and FFO include a one-time charge of approximately $1.5 million, or
$0.03 per share, representing deferred payments over a period of years and non-cash charges
relating to the retirement of the former Chief Financial Officer of the Company. A reconciliation
of net income applicable to common shareholders to FFO is contained in the table accompanying this
release. The Company’s prior periods’ results have been re-cast to reflect Stadium Plaza Shopping
Center in East Lansing, Michigan (presently held for sale) as a “discontinued operation”.
Cedar’s total revenues for the six months ended June 30, 2007 increased 22% to $72.4 million from
$59.6 million for the six months ended June 30, 2006. Net income applicable to common shareholders
increased 110% to $6.6 million, or $0.15 per share, as compared to $3.1 million, or $0.10 per
share, for the six months ended June 30, 2006. FFO increased 36% to $26.5 million, or $0.57 per
share/OP unit, as compared to $19.5 million, or $0.61 per share/OP unit, for the six months ended
June 30, 2006. As mentioned above, the net income and FFO include the one-time charge.
Net cash flows provided by operating activities increased to $24.9 million for the six months ended
June 30, 2007 as compared to $17.4 million for the corresponding period of 2006.
Balance Sheet and Capital Position
Total
assets increased 10.2% to $1.380 million at June 30, 2007 from December 31, 2006. The Company
had total debt outstanding of $701 million at June 30, 2007 as compared to $590 million at March
31, 2007 and had $140 million available under its $300 million revolving line of credit at June 30,
2007. The Company has a development portfolio of between $300 and $400 million that it expects to
begin to put into service over the next 18 to 24 months. It expects to fund these activities with
borrowings under the existing revolving line of credit, borrowings under construction financing
arrangements, refinancing of certain fixed rate loans as they come due, sales proceeds and/or funds
from joint venture arrangements related to stabilized properties. The Company has not committed to
all of the development activities nor entered into these financing commitments and there can be no
assurance that it will do so.
Larry Kreider, Cedar’s Chief Financial Officer, noted, “Our financial position remains strong. We
do not expect to access the equity markets this year and we presently believe our access to our credit
facility, coupled with the conclusion of joint venture arrangements, construction financing
arrangements, the potential sale of select assets and refinancing of existing debt as it comes due,
will be sufficient to execute the balance of our contemplated acquisitions and our development
pipeline.”
Leasing Activity
As of this date, annual base rents, excluding tenant reimbursements, for leases that have been
signed and for which tenants have not yet occupied the respective premises, represented
approximately 153,000 sq. ft., net, and amounted to approximately $2.8 million.
Acquisitions
At the beginning of the quarter, Cedar completed the purchase of five supermarket-anchored
properties located in Harrisburg and the eastern two-thirds of Pennsylvania for an aggregate
purchase price of approximately $91.9 million, including closing costs. Four of the five
properties were encumbered by approximately $42.8 million of first mortgage financing and the
Company placed $14.3 million of new financing on the fifth.
The Company also purchased an approximate 41,000 sq. ft. shopping center anchored by Discount Drug
Mart in Grove City, Ohio, for approximately $4.4 million. The purchase was funded entirely from
the Company’s secured revolving credit facility.
In June, the Company entered into agreements and completed due diligence with respect to the
purchase of a six property portfolio located in Massapequa (Long Island) New York; New Bedford,
Massachusetts; West Bridgewater, Massachusetts; Groton, Connecticut; Shamokin Dam, Pennsylvania and
Cockeysville, Maryland, aggregating approximately 870,000 sq. ft. of gross leaseable area (GLA),
for an aggregate purchase price of approximately $117 million, subject to existing financing of
approximately $86 million, with a weighted average interest rate of less than 6%. The total cash
required, representing approximately $31 million, will be funded from the Company’s secured
revolving credit facility. All of the properties are anchored, three by supermarkets.
Joint Venture Activity
In April, Cedar entered into a joint-venture agreement with a wholly-owned subsidiary of Homburg
Invest Inc., a public Canadian real estate corporation listed on the Toronto Stock Exchange (TSX:
HII.A and HII.B) and Euronext Amsterdam Stock Exchange (AEX: HII). Cedar will sell an 80% interest
in the five Pennsylvania properties acquired in April, at the price for which the Company purchased
such properties, and in four other properties previously purchased or developed by Cedar.
The Company, in addition to retaining a 20% ownership interest, also will retain property
management of the properties, as well as leasing, construction management, financing/refinancing
and sale fee arrangements for the properties. The Company’s interest in the joint venture will be
increased to 40% upon a sale or other capital transaction based on a “look-back leveraged internal
rate of return” of 9.25% as defined in the documents and increased to 50% at a 10.5% return.
Also in April 2007, the Company entered into a joint venture agreement for the construction and
development of an approximate 700,000 sq. ft. shopping center on 108 acres in Pottsgrove,
Pennsylvania. While site improvements are expected to commence in the fourth quarter of this year,
completion and delivery is expected by the end of 2009. Total project costs are estimated at $105
million. Cedar is obligated to fund up to $17.5 million as invested capital with a preferred
return at 9.25%. Cedar will have a 60% interest in the venture and an option to
purchase the joint venture partners’ interest at an agreed determinable price three years after
stabilization. Giant Foods has executed a ground lease for a 76,000 sq. ft. store at this
property.
Guidance
The Company expects FFO for 2007 to be in the range of $1.22 to $1.27 per share/OP unit. This
reflects the Company’s previously announced guidance adjusted for the one-time charge of $0.03 per
share/OP unit as described above.
Supplemental Information Package
The Company has issued “Supplemental Financial Information” for the period ended June 30, 2007, and
has filed such information today as an exhibit to Form 8-K, which will also be available on the
Company’s website at http://www.cedarshoppingcenters.com.
Reference to Form 10-Q
Interested parties are urged to review the Form 10-Q filed with the Securities and Exchange
Commission for the quarter ended June 30, 2007 for further details.
Investor Conference Call
The Company will host a conference call on Tuesday, August 7, at 11:00 AM (EDT) to discuss the
second quarter results. The U.S. dial-in number to call for this teleconference is (800) 817-4887.
The international dial-in number is (913) 981-4913. A replay of the conference call will be
available from 2:00 PM on August 7 through midnight (EDT) on August 21, 2007 by using U.S. dial-in
number (888) 203-1112 and entering the passcode 4217255 (international callers may use dial-in
number (719) 457-0820 and use the same passcode indicated for U.S. callers). The webcast of the
conference call will be available on the Company’s Web site at www.cedarshoppingcenters.com and
will remain on the Web site for a limited time.
About Cedar Shopping Centers
Cedar Shopping Centers, Inc. is a fully-integrated real estate investment trust which focuses
primarily on ownership, operation, development and redevelopment of supermarket-anchored shopping
centers and drug store-anchored convenience centers. The Company has realized significant growth
in assets since its public offering in October 2003 and presently owns and operates 107 of such
primarily supermarket- and drug store-anchored centers with an aggregate of approximately 10.7
million square feet of gross leasable area, located in nine states, predominantly in the Northeast
and mid-Atlantic regions. The Company also owns 9 development parcels aggregating approximately
192 acres.
Forward-Looking Statements
Statements made or incorporated by reference in this press release include certain “forward-looking
statements”. Such forward-looking statements include, without limitation, statements containing the
words “anticipates”, “believes”, “expects”, “intends”, “future”, and words of similar import which
express Company’s beliefs, expectations or intentions regarding future performance or future events
or trends. While forward-looking statements reflect good faith beliefs, expectations or intentions,
they are not guarantees of future performance and involve known and unknown risks, uncertainties
and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or
achievements expressed or implied by such forward-looking statements as a result of factors outside
of the Company’s control. Certain factors that might cause such differences include, but are not
limited to, the following: real estate investment considerations, such as the effect of economic
and other conditions in general and in the Company’s market areas in particular; the financial
viability of the Company’s tenants; the continuing availability of suitable acquisitions, and
development and redevelopment opportunities, on favorable terms; the availability of equity and
debt capital in the public and private markets; changes in interest rates; the fact that returns
from development, redevelopment and acquisition activities may not be at expected levels or at
expected times; inherent risks in ongoing development and redevelopment projects including, but not
limited to, cost overruns resulting from weather delays, changes in the nature and scope of
development and redevelopment efforts, changes in governmental regulations related thereto, and
market factors involved in the pricing of material and labor; the need to renew leases or re-let
space upon the expiration of current leases; and the financial flexibility to repay or refinance
debt obligations when due.
Non-GAAP Financial Measures — FFO
Funds From Operations (“FFO”) is a widely-recognized non-GAAP financial measure for REITs that the
Company believes, when considered with financial statements determined in accordance with GAAP, is
useful to investors in understanding financial performance and providing a relevant basis for
comparison among REITs. In addition, FFO is useful to investors as 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 do other depreciable assets. Investors
should review FFO, along with GAAP net income, when trying to understand an equity REIT’s operating
performance. The Company presents FFO because the Company considers it an important supplemental
measure of its operating performance and believes that it is frequently used by securities
analysts, investors and other interested parties in the evaluation of REITs. Among other things,
the Company uses FFO or an FFO-based measure (1) as one of several criteria to determine
performance-based bonuses for members of senior management, (2) in performance comparisons with
other shopping center REITs, and (3) to measure compliance with certain financial covenants under
the terms of the Loan Agreement relating to the Company’s secured revolving credit facility.
The Company computes FFO in accordance with the “White Paper” on FFO published by the National
Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net income applicable
to common shareholders (determined in accordance with GAAP), excluding gains or losses from debt
restructurings and sales of properties, plus real estate-related depreciation and amortization, and
after adjustments for partnerships and joint ventures (which are computed to reflect FFO on the
same basis).
FFO does not represent cash generated from operating activities and should not be considered as an
alternative to net income applicable to common shareholders or to cash flow from operating
activities. FFO is not indicative of cash available to fund ongoing cash needs, including the
ability to make cash distributions. Although FFO is a measure used for comparability in assessing
the performance of REITs, as the NAREIT White Paper only provides guidelines for computing FFO, the
computation of FFO may vary from one company to another.
The following table sets forth the Company’s calculations of FFO for the three and six months ended
June 30, 2007 and 2006:
| |
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|
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| |
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Three months ended June 30, |
|
Six months ended June 30, |
| |
|
2007 |
|
2006 |
|
2007 |
|
2006 |
| |
|
|
|
|
Net income applicable to common
shareholders |
|
$ |
2,921,000 |
|
|
$ |
2,134,000 |
|
|
$ |
6,576,000 |
|
|
$ |
3,134,000 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization |
|
|
9,837,000 |
|
|
|
8,029,000 |
|
|
|
19,667,000 |
|
|
|
16,600,000 |
|
Limited partners’ interest |
|
|
132,000 |
|
|
|
114,000 |
|
|
|
295,000 |
|
|
|
167,000 |
|
Minority interests in consolidated joint ventures |
|
|
300,000 |
|
|
|
309,000 |
|
|
|
695,000 |
|
|
|
619,000 |
|
Minority interests’ share of FFO applicable to
consolidated joint ventures |
|
|
(426,000 |
) |
|
|
(446,000 |
) |
|
|
(917,000 |
) |
|
|
(912,000 |
) |
Equity in (income) loss of unconsolidated
joint ventures |
|
|
(157,000 |
) |
|
|
15,000 |
|
|
|
(313,000 |
) |
|
|
40,000 |
|
Gain on sale of interest in unconsolidated joint
venture |
|
|
— |
|
|
|
(141,000 |
) |
|
|
— |
|
|
|
(141,000 |
) |
FFO from unconsolidated joint ventures |
|
|
234,000 |
|
|
|
(2,000 |
) |
|
|
468,000 |
|
|
|
(5,000 |
) |
| |
|
|
|
|
Funds from operations |
|
$ |
12,841,000 |
|
|
$ |
10,012,000 |
|
|
$ |
26,471,000 |
|
|
$ |
19,502,000 |
|
| |
|
|
|
|
|
|
|
|
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|
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|
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FFO per common share (assuming conversion
of OP Units): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.28 |
|
|
$ |
0.31 |
|
|
$ |
0.57 |
|
|
$ |
0.61 |
|
| |
|
|
|
|
Diluted |
|
$ |
0.28 |
|
|
$ |
0.31 |
|
|
$ |
0.57 |
|
|
$ |
0.61 |
|
| |
|
|
|
|
|
|
|
|
|
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|
|
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|
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|
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Weighted average number of common shares: |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
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Shares used in determination of basic earnings
per share |
|
|
44,194,000 |
|
|
|
30,618,000 |
|
|
|
44,153,000 |
|
|
|
30,248,000 |
|
Additional shares assuming conversion
of OP Units (basic) |
|
|
1,984,000 |
|
|
|
1,632,000 |
|
|
|
1,985,000 |
|
|
|
1,594,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in determination of basic FFO per share |
|
|
46,178,000 |
|
|
|
32,250,000 |
|
|
|
46,138,000 |
|
|
|
31,842,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in determination of diluted earnings
per share |
|
|
44,198,000 |
|
|
|
30,863,000 |
|
|
|
44,158,000 |
|
|
|
30,504,000 |
|
Additional shares assuming conversion
of OP Units (diluted) |
|
|
1,997,000 |
|
|
|
1,638,000 |
|
|
|
1,998,000 |
|
|
|
1,601,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in determination of diluted FFO per share |
|
|
46,195,000 |
|
|
|
32,501,000 |
|
|
|
46,156,000 |
|
|
|
32,105,000 |
|
| |
|
|
|
|
CEDAR SHOPPING CENTERS, INC.
Consolidated Balance Sheets
| |
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June 30 |
|
|
December 31, |
|
| |
|
2007 |
|
|
2006 |
|
| |
|
(unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Real estate: |
|
|
|
|
|
|
|
|
Land |
|
$ |
271,915,000 |
|
|
$ |
248,108,000 |
|
Buildings and improvements |
|
|
1,098,290,000 |
|
|
|
982,294,000 |
|
|
|
|
|
|
|
|
|
|
|
1,370,205,000 |
|
|
|
1,230,402,000 |
|
Less accumulated depreciation |
|
|
(82,495,000 |
) |
|
|
(64,458,000 |
) |
|
|
|
|
|
|
|
Real estate, net |
|
|
1,287,710,000 |
|
|
|
1,165,944,000 |
|
|
|
|
|
|
|
|
|
|
Property and related assets held for sale, net of
accumulated depreciation |
|
|
11,838,000 |
|
|
|
11,493,000 |
|
Investment in unconsolidated joint venture |
|
|
3,700,000 |
|
|
|
3,644,000 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
18,258,000 |
|
|
|
17,885,000 |
|
Restricted cash |
|
|
12,268,000 |
|
|
|
11,507,000 |
|
Rents and other receivables, net |
|
|
4,640,000 |
|
|
|
4,187,000 |
|
Straight-line rents receivable |
|
|
9,632,000 |
|
|
|
7,870,000 |
|
Other assets |
|
|
5,878,000 |
|
|
|
6,921,000 |
|
Deferred charges, net |
|
|
25,811,000 |
|
|
|
22,268,000 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,379,735,000 |
|
|
$ |
1,251,719,000 |
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|
Mortgage loans payable |
|
$ |
561,762,000 |
|
|
$ |
499,603,000 |
|
Secured revolving credit facility |
|
|
138,990,000 |
|
|
|
68,470,000 |
|
Accounts payable, accrued expenses, and other |
|
|
17,333,000 |
|
|
|
17,435,000 |
|
Unamortized intangible lease liabilities |
|
|
55,789,000 |
|
|
|
53,160,000 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
773,874,000 |
|
|
|
638,668,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interests in consolidated joint ventures |
|
|
10,363,000 |
|
|
|
9,132,000 |
|
Limited partners’ interest in Operating Partnership |
|
|
25,606,000 |
|
|
|
25,969,000 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock ($.01 par value, $25.00 per share
liquidation value, 5,000,000 shares authorized, 3,550,000
shares issued and outstanding) |
|
|
88,750,000 |
|
|
|
88,750,000 |
|
Common stock ($.06 par value, 50,000,000 shares
authorized, 44,231,000 and 43,773,000 shares, respectively,
issued and outstanding) |
|
|
2,654,000 |
|
|
|
2,626,000 |
|
Treasury stock (616,000 and 502,000 shares, respectively, at
cost) |
|
|
(8,189,000 |
) |
|
|
(6,378,000 |
) |
Additional paid-in capital |
|
|
571,649,000 |
|
|
|
564,637,000 |
|
Cumulative distributions in excess of net income |
|
|
(85,126,000 |
) |
|
|
(71,831,000 |
) |
Accumulated other comprehensive income |
|
|
154,000 |
|
|
|
146,000 |
|
|
|
|
|
|
|
|
Total shareholders’ equity |
|
|
569,892,000 |
|
|
|
577,950,000 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
1,379,735,000 |
|
|
$ |
1,251,719,000 |
|
|
|
|
|
|
|
|
CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Income
(unaudited)
| |
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| |
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Three months ended June 30, |
|
|
Six months ended June 30, |
|
| |
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rents |
|
$ |
29,725,000 |
|
|
$ |
24,078,000 |
|
|
$ |
57,999,000 |
|
|
$ |
47,961,000 |
|
Expense recoveries |
|
|
6,755,000 |
|
|
|
5,595,000 |
|
|
|
13,947,000 |
|
|
|
11,124,000 |
|
Other |
|
|
101,000 |
|
|
|
287,000 |
|
|
|
453,000 |
|
|
|
493,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
36,581,000 |
|
|
|
29,960,000 |
|
|
|
72,399,000 |
|
|
|
59,578,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating, maintenance and management |
|
|
5,658,000 |
|
|
|
5,305,000 |
|
|
|
12,657,000 |
|
|
|
11,435,000 |
|
Real estate and other property-related taxes |
|
|
3,552,000 |
|
|
|
3,076,000 |
|
|
|
7,059,000 |
|
|
|
5,954,000 |
|
General and administrative |
|
|
3,220,000 |
|
|
|
1,410,000 |
|
|
|
5,218,000 |
|
|
|
2,789,000 |
|
Depreciation and amortization |
|
|
9,821,000 |
|
|
|
7,981,000 |
|
|
|
19,631,000 |
|
|
|
16,505,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
22,251,000 |
|
|
|
17,772,000 |
|
|
|
44,565,000 |
|
|
|
36,683,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
14,330,000 |
|
|
|
12,188,000 |
|
|
|
27,834,000 |
|
|
|
22,895,000 |
|
Non-operating income and expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(9,185,000 |
) |
|
|
(7,742,000 |
) |
|
|
(16,753,000 |
) |
|
|
(15,099,000 |
) |
Amortization of deferred financing costs |
|
|
(377,000 |
) |
|
|
(333,000 |
) |
|
|
(729,000 |
) |
|
|
(662,000 |
) |
Interest income |
|
|
223,000 |
|
|
|
121,000 |
|
|
|
498,000 |
|
|
|
237,000 |
|
Equity in income (loss) of unconsolidated joint ventures |
|
|
157,000 |
|
|
|
(15,000 |
) |
|
|
313,000 |
|
|
|
(40,000 |
) |
Gain on sale of interest in unconsolidated joint venture |
|
|
— |
|
|
|
141,000 |
|
|
|
— |
|
|
|
141,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-operating income and expense |
|
|
(9,182,000 |
) |
|
|
(7,828,000 |
) |
|
|
(16,671,000 |
) |
|
|
(15,423,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before minority and limited partners’ interests
and discontinued operations |
|
|
5,148,000 |
|
|
|
4,360,000 |
|
|
|
11,163,000 |
|
|
|
7,472,000 |
|
Minority interests in consolidated joint ventures |
|
|
(300,000 |
) |
|
|
(309,000 |
) |
|
|
(695,000 |
) |
|
|
(619,000 |
) |
Limited partners’ interest in Operating Partnership |
|
|
(125,000 |
) |
|
|
(105,000 |
) |
|
|
(281,000 |
) |
|
|
(148,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
4,723,000 |
|
|
|
3,946,000 |
|
|
|
10,187,000 |
|
|
|
6,705,000 |
|
Discontinued operations, net of limited partners’ interest |
|
|
182,000 |
|
|
|
172,000 |
|
|
|
327,000 |
|
|
|
367,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
4,905,000 |
|
|
|
4,118,000 |
|
|
|
10,514,000 |
|
|
|
7,072,000 |
|
Preferred distribution requirements |
|
|
(1,984,000 |
) |
|
|
(1,984,000 |
) |
|
|
(3,938,000 |
) |
|
|
(3,938,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to common shareholders |
|
$ |
2,921,000 |
|
|
$ |
2,134,000 |
|
|
$ |
6,576,000 |
|
|
$ |
3,134,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share (basic): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of preferred
distribution requirements |
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.14 |
|
|
$ |
0.09 |
|
Discontinued operations, net of limited partners’ interest |
|
|
— |
|
|
|
— |
|
|
$ |
0.01 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to common shareholders |
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.15 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share (diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of preferred
distribution requirements |
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.14 |
|
|
$ |
0.09 |
|
Discontinued operations, net of limited partners’ interest |
|
|
— |
|
|
|
— |
|
|
$ |
0.01 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to common shareholders |
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.15 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to common shareholders |
|
$ |
9,942,000 |
|
|
$ |
6,867,000 |
|
|
$ |
19,871,000 |
|
|
$ |
13,568,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share |
|
$ |
0.225 |
|
|
$ |
0.225 |
|
|
$ |
0.450 |
|
|
$ |
0.450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,194,000 |
|
|
|
30,618,000 |
|
|
|
44,153,000 |
|
|
|
30,248,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
44,198,000 |
|
|
|
30,863,000 |
|
|
|
44,158,000 |
|
|
|
30,504,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CEDAR SHOPPING CENTERS, INC.
Consolidated Statement of Shareholders’ Equity
Six months ended June 30, 2007
(unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Preferred stock |
|
Common stock |
|
|
|
|
|
|
|
|
|
Cumulative |
|
Accumulated |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
$25.00 |
|
|
|
|
|
|
|
|
|
Treasury |
|
Additional |
|
distributions |
|
other |
|
Total |
| |
|
|
|
|
|
Liquidation |
|
|
|
|
|
$ 0.06 |
|
stock, |
|
paid-in |
|
in excess of |
|
comprehensive |
|
shareholders' |
| |
|
Shares |
|
value |
|
Shares |
|
Par value |
|
at cost |
|
capital |
|
net income |
|
income |
|
equity |
Balance, December 31, 2006 |
|
|
3,550,000 |
|
|
$ |
88,750,000 |
|
|
|
43,773,000 |
|
|
$ |
2,626,000 |
|
|
$ |
(6,378,000 |
) |
|
$ |
564,637,000 |
|
|
$ |
(71,831,000 |
) |
|
$ |
146,000 |
|
|
$ |
577,950,000 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,514,000 |
|
|
|
|
|
|
|
10,514,000 |
|
Unrealized gain (loss) on change in fair value
of cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,000 |
|
|
|
8,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,522,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred compensation activity, net |
|
|
|
|
|
|
|
|
|
|
179,000 |
|
|
|
11,000 |
|
|
|
(1,811,000 |
) |
|
|
3,111,000 |
|
|
|
|
|
|
|
|
|
|
|
1,311,000 |
|
Net proceeds from common stock sales |
|
|
|
|
|
|
|
|
|
|
275,000 |
|
|
|
17,000 |
|
|
|
|
|
|
|
4,115,000 |
|
|
|
|
|
|
|
|
|
|
|
4,132,000 |
|
Conversion of OP Units into common stock |
|
|
|
|
|
|
|
|
|
|
4,000 |
|
|
|
— |
|
|
|
|
|
|
|
45,000 |
|
|
|
|
|
|
|
|
|
|
|
45,000 |
|
Preferred distribution requirements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,938,000 |
) |
|
|
|
|
|
|
(3,938,000 |
) |
Dividends to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19,871,000 |
) |
|
|
|
|
|
|
(19,871,000 |
) |
Reallocation adjustment of limited partners’
interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(259,000 |
) |
|
|
|
|
|
|
|
|
|
|
(259,000 |
) |
| |
|
|
Balance, June 30, 2007 |
|
|
3,550,000 |
|
|
$ |
88,750,000 |
|
|
|
44,231,000 |
|
|
$ |
2,654,000 |
|
|
$ |
(8,189,000 |
) |
|
$ |
571,649,000 |
|
|
$ |
(85,126,000 |
) |
|
$ |
154,000 |
|
|
$ |
569,892,000 |
|
| |
|
|
CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Cash Flows
(unaudited)
| |
|
|
|
|
|
|
|
|
| |
|
Six months ended June 30, |
|
| |
|
2007 |
|
|
2006 |
|
Cash flow from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
10,514,000 |
|
|
$ |
7,072,000 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Non-cash provisions: |
|
|
|
|
|
|
|
|
Earnings in excess of distributions of consolidated joint venture
minority interests |
|
|
163,000 |
|
|
|
59,000 |
|
Equity in (income) loss of unconsolidated joint ventures |
|
|
(313,000 |
) |
|
|
40,000 |
|
Distributions from unconsolidated joint venture |
|
|
265,000 |
|
|
|
— |
|
Gain on sale of interest in unconsolidated joint venture |
|
|
— |
|
|
|
(141,000 |
) |
Limited partners’ interest in Operating Partnership |
|
|
295,000 |
|
|
|
167,000 |
|
Straight-line rents receivable |
|
|
(1,806,000 |
) |
|
|
(1,751,000 |
) |
Depreciation and amortization |
|
|
19,781,000 |
|
|
|
16,657,000 |
|
Amortization of intangible lease liabilities |
|
|
(5,098,000 |
) |
|
|
(4,671,000 |
) |
Amortization relating to stock-based compensation |
|
|
1,154,000 |
|
|
|
271,000 |
|
Amortization of deferred financing costs |
|
|
729,000 |
|
|
|
662,000 |
|
Increases/decreases in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Cash at consolidated joint ventures |
|
|
87,000 |
|
|
|
671,000 |
|
Rents and other receivables, net |
|
|
(453,000 |
) |
|
|
(290,000 |
) |
Other assets |
|
|
(23,000 |
) |
|
|
(610,000 |
) |
Accounts payable, accrued expenses and other |
|
|
(395,000 |
) |
|
|
(727,000 |
) |
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
24,900,000 |
|
|
|
17,409,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
|
|
Expenditures for real estate and improvements |
|
|
(92,646,000 |
) |
|
|
(43,696,000 |
) |
Investment in unconsolidated joint ventures |
|
|
(8,000 |
) |
|
|
— |
|
Proceeds from sale of interest in unconsolidated joint venture |
|
|
— |
|
|
|
1,466,000 |
|
Construction escrows and other |
|
|
(474,000 |
) |
|
|
(2,759,000 |
) |
|
|
|
|
|
|
|
Net cash (used in) investing activities |
|
|
(93,128,000 |
) |
|
|
(44,989,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
|
Net advances (repayments) from line of credit |
|
|
70,520,000 |
|
|
|
(23,000,000 |
) |
Proceeds from sales of common stock |
|
|
3,910,000 |
|
|
|
61,560,000 |
|
Proceeds from mortgage financings |
|
|
23,000,000 |
|
|
|
14,588,000 |
|
Mortgage repayments |
|
|
(4,125,000 |
) |
|
|
(3,552,000 |
) |
Contribution from minority interest partner |
|
|
1,048,000 |
|
|
|
— |
|
Distributions in excess of earnings from consolidated joint venture
minority interests |
|
|
— |
|
|
|
(176,000 |
) |
Distributions to limited partners |
|
|
(890,000 |
) |
|
|
(698,000 |
) |
Preferred distribution requirements |
|
|
(3,938,000 |
) |
|
|
(3,938,000 |
) |
Distributions to common shareholders |
|
|
(19,871,000 |
) |
|
|
(13,568,000 |
) |
Payment of deferred financing costs |
|
|
(1,053,000 |
) |
|
|
(482,000 |
) |
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
68,601,000 |
|
|
|
30,734,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
373,000 |
|
|
|
3,154,000 |
|
Cash and cash equivalents at beginning of period |
|
|
17,885,000 |
|
|
|
8,601,000 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
18,258,000 |
|
|
$ |
11,755,000 |
|
|
|
|
|
|
|
|
10
