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 ANNOUNCES THIRD QUARTER 2007 RESULTS
Port Washington, New York — November 5, 2007 — Cedar Shopping Centers, Inc. (NYSE: CDR) today
reported its financial results for the quarter ended September 30, 2007.
Highlights
| • |
|
Net income applicable to common shareholders for the quarter ended September 30, 2007
increased 120% to $3.9 million ($0.09 per share) from $1.8 million ($0.05 per share) for the
third quarter of 2006. |
| • |
|
Net income applicable to common shareholders for the nine months ended September 30, 2007
increased 113% to $10.5 million ($0.24 per share) from $4.9 million ($0.16 per share) for the
comparable period of 2006. |
| • |
|
Funds From Operations (“FFO”) increased 32% to $14.2 million ($0.31 per share/OP unit) for
the quarter ended September 30, 2007 compared to $10.7 million ($0.30 per share/OP unit) for
the comparable period in 2006. FFO increased 34% to $40.6 million ($0.88 per share/OP unit, after the previously-announced
one-time charge of $0.03 per share/OP unit)
for the nine months ended September 30, 2007 compared to $30.2 million ($0.91 per share/OP
unit) for the comparable period in 2006. |
| • |
|
Net cash flows provided by operating activities increased 38% to $36.8 million for the nine
months ended September 30, 2007 compared to $26.6 million for the comparable period of 2006. |
| • |
|
Total assets increased 20% to $1.50 billion as of September 30, 2007 from $1.25 billion as
of December 31, 2006. |
| • |
|
Occupancy for the Company’s stabilized portfolio at September 30, 2007 remained
approximately 96% while total portfolio occupancy including development and redevelopment
properties remained approximately 93%. |
Leo Ullman, Cedar’s CEO, stated, “Our third quarter and year-to-date 2007 results show that we are
effectively executing our business plan. We continue to assemble on an accretive basis a fine
portfolio of stable, primarily supermarket-anchored community centers in attractive New England and
Mid-Atlantic locations while building a substantial development and redevelopment
pipeline for delivery in the coming years. We expect this strategy to provide meaningful long-term
value for our shareholders. In the current market environment, we remain focused on a disciplined
and profitable approach to both our development activities and our acquisitions, while carefully
preserving our equity and our access to capital.”
Financial and Operating Results
Total revenues for the third quarter ended September 30, 2007 increased 19% to $37.5 million from
$31.6 million for the third quarter ended September 30, 2006. Net income applicable to common
shareholders increased 120% to $3.9 million, or $0.09 per share, as compared to $1.8 million, or
$0.05 per share, for the quarter ended September 30, 2006.
FFO increased 32% to $14.2 million, or $0.31 per share/OP unit, as compared to $10.7 million, or
$0.30 per share/OP unit for the quarter ended September 30, 2006. Net income and FFO for the third
quarter of this year reflect minimal impact from the acquisitions that the Company made late in the
quarter. A reconciliation of net income applicable to common shareholders to FFO is contained in
the table accompanying this release.
Net cash flows provided by operating activities increased 38% to $36.8 million for the nine months
ended September 30, 2007 as compared to $26.6 million for the corresponding period of 2006.
Total revenues for the nine months ended September 30, 2007 increased 21% to $109.9 million from
$91.2 million for the nine months ended September 30, 2006. Net income applicable to common
shareholders increased 113% to $10.5 million, or $0.24 per share, as compared to $4.9 million, or
$0.16 per share, for the nine months ended September 30, 2006. FFO increased 34% to $40.6 million,
or $0.88 per share/OP unit, as compared to $30.2 million, or $0.91 per share/OP unit, for the nine
months ended September 30, 2006. As previously disclosed, net income and FFO for the nine-month
period in 2007 include a one-time charge of approximately $1.5 million or $0.03 per common share/OP
unit for the retirement of the Company’s former Chief Financial Officer and for the hiring of a new
CFO.
Same Property Results
The Company held 85 properties during both the third quarters of 2007 and 2006, excluding the one
property (in Michigan) held for sale. Same property net operating income increased 3.5% to $22.6
million in the third quarter of 2007 as compared to $21.8 million in the comparable period of the
prior year. The improvement in same property results reflects increased base and percentage rents,
increased expense recoveries and reduced expense for doubtful accounts. These operating
improvements were partially offset by non-cash revenue recognized in the third quarter of 2006
resulting from prematurely terminated leases.
Balance Sheet and Capital Position
Total assets increased 20% to $1.50 billion at September 30, 2007 from $1.25 billion at December
31, 2006. The Company had total debt outstanding of $824 million at September 30, 2007 as compared
to $701 million at June 30, 2007 and had $108 million available under its $300 million secured
revolving credit facility after giving effect to September 30, 2007 covenant
2
and collateral measurements and additional collateral pledged in October 2007. The Company expects
a further increase in availability under the credit facility in the fourth quarter as a result of
receiving approximately $50 million in proceeds from the previously-announced joint venture with
Homburg Invest Inc.
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, excess proceeds from refinancing of certain fixed-rate loans as they come due, and
sales proceeds and/or funds from joint venture arrangements.
Larry Kreider, Cedar’s Chief Financial Officer, noted, “Our financial position remains strong. We
believe that access to our credit facility, coupled with the conclusion of joint venture
arrangements, construction financing arrangements, the potential sale of select assets, and excess
proceeds from refinancing of existing debt as it comes due, will be sufficient to execute the
balance of our contemplated acquisitions and our current development pipeline.”
Leasing Activity
In the third quarter of 2007, the Company signed 21 renewal leases aggregating approximately 55,000
sq. ft. with an average increase in base rents of 7.8%, and signed 11 new leases aggregating
approximately 31,000 sq. ft. with an average base rent of $17.04 per sq. ft. For the nine months
ended September 30, 2007, the Company signed 109 renewal leases aggregating approximately 399,000
sq. ft. with an average increase in base rents of 7.5%, and signed 43 new leases aggregating
approximately 150,000 sq. ft. with an average base rent of $16.99 per sq. ft. These figures do not
include licenses, assignments or temporary leases.
Acquisitions
In the third quarter and early October 2007, the Company completed 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 866,000 sq. ft. of gross leasable area (“GLA”), for an
aggregate purchase price of approximately $118.2 million, subject to existing financing of
approximately $86.0 million bearing a weighted average interest rate of approximately 6%. The
total cash required of approximately $32.2 million was funded from the Company’s secured revolving
credit facility. All of the properties feature sizable anchor tenants; three of the centers are
anchored by supermarkets.
In September 2007, the Company acquired the 41,000 sq. ft. Hilliard Discount Drug Mart Plaza in
Hilliard, Ohio for $5.4 million, funded from the Company’s secured revolving credit facility.
In October, the Company entered into an agreement to purchase for approximately $18 million a
102,000 sq. ft. supermarket-anchored shopping center in Webster, Massachusetts. This will be the
Company’s fourteenth New England shopping center. The Company expects to place new fixed-rate first
mortgage financing on the property in an amount estimated at 65% of the purchase price; the
remainder will be funded from the Company’s secured revolving credit facility
3
Guidance
The Company continues to expect FFO for the full year 2007 to be on the lower end of the range of
$1.22 to $1.27 per share/OP unit after the previously-announced one-time charge of $0.03 per
share/OP unit taken last quarter.
Supplemental Information Package
The Company has issued “Supplemental Financial Information” for the period ended September 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 to be filed with the Securities and Exchange
Commission for the quarter ended September 30, 2007 for further details.
Investor Conference Call
The Company will host a conference call on Tuesday, November 6, 2007, at 11:00 AM (EST) to discuss
the third quarter results. The U.S. dial-in number to call for this teleconference is (888)
609-5693. The international dial-in number is (913) 312-1229. A replay of the conference call will
be available from 2:00 PM on November 6 through midnight (EST) on November 20, 2007 by using U.S.
dial-in number (888) 203-1112 and entering the passcode 2630453 (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 website at www.cedarshoppingcenters.com and
will remain on the website 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 in nine mid-Atlantic and New England states. The Company has realized significant growth in
assets and has completed a number of developments and redevelopments of retail properties since its
public offering in October 2003. The Company presently owns and operates 113 properties aggregating
approximately 11.5 million square feet of GLA. The Company also owns a substantial and growing
pipeline of development properties as well as approximately 210 acres of primarily unimproved
development parcels.
4
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 (including the availability of
property-specific construction financing) 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
5
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 nine months
ended September 30, 2007 and 2006:
6
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
| |
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2007 |
|
2006 |
|
2007 |
|
2006 |
| |
|
|
|
|
Net income applicable to common
shareholders |
|
$ |
3,925,000 |
|
|
$ |
1,785,000 |
|
|
$ |
10,501,000 |
|
|
$ |
4,919,000 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Real estate depreciation and amortization |
|
|
10,078,000 |
|
|
|
8,963,000 |
|
|
|
29,745,000 |
|
|
|
25,563,000 |
|
Limited partners’ interest |
|
|
179,000 |
|
|
|
95,000 |
|
|
|
474,000 |
|
|
|
262,000 |
|
Minority interests in consolidated joint ventures |
|
|
333,000 |
|
|
|
324,000 |
|
|
|
1,028,000 |
|
|
|
943,000 |
|
Minority interests’ share of FFO applicable to
consolidated joint ventures |
|
|
(448,000 |
) |
|
|
(438,000 |
) |
|
|
(1,365,000 |
) |
|
|
(1,350,000 |
) |
Equity in (income) loss of unconsolidated
joint ventures |
|
|
(150,000 |
) |
|
|
— |
|
|
|
(463,000 |
) |
|
|
40,000 |
|
Gain on sale of interest in unconsolidated joint venture |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(141,000 |
) |
FFO from unconsolidated joint ventures |
|
|
233,000 |
|
|
|
— |
|
|
|
701,000 |
|
|
|
(5,000 |
) |
| |
|
|
|
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Funds from operations |
|
$ |
14,150,000 |
|
|
$ |
10,729,000 |
|
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$ |
40,621,000 |
|
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$ |
30,231,000 |
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FFO per common share (assuming conversion
of OP Units): |
|
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Basic |
|
$ |
0.31 |
|
|
$ |
0.30 |
|
|
$ |
0.88 |
|
|
$ |
0.91 |
|
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|
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|
Diluted |
|
$ |
0.31 |
|
|
$ |
0.30 |
|
|
$ |
0.88 |
|
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$ |
0.90 |
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Weighted average number of common shares: |
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Shares used in determination of basic earnings
per share |
|
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44,231,000 |
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|
34,484,000 |
|
|
|
44,179,000 |
|
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|
31,660,000 |
|
Additional shares assuming conversion
of OP Units (basic) |
|
|
1,982,000 |
|
|
|
1,837,000 |
|
|
|
1,984,000 |
|
|
|
1,675,000 |
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|
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Shares used in determination of basic FFO per share |
|
|
46,213,000 |
|
|
|
36,321,000 |
|
|
|
46,163,000 |
|
|
|
33,335,000 |
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Shares used in determination of diluted earnings
per share |
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44,234,000 |
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|
34,488,000 |
|
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|
44,183,000 |
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|
31,831,000 |
|
Additional shares assuming conversion
of OP Units (diluted) |
|
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1,981,000 |
|
|
|
1,846,000 |
|
|
|
1,993,000 |
|
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|
1,683,000 |
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Shares used in determination of diluted FFO per share |
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46,215,000 |
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36,334,000 |
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46,176,000 |
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33,514,000 |
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CEDAR SHOPPING CENTERS, INC.
Consolidated Balance Sheets
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September 30, |
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December 31, |
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2007 |
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2006 |
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(unaudited) |
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Assets |
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Real estate: |
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Land |
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$ |
296,372,000 |
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$ |
248,108,000 |
|
Buildings and improvements |
|
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1,194,368,000 |
|
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|
982,294,000 |
|
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|
|
|
|
|
|
|
|
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1,490,740,000 |
|
|
|
1,230,402,000 |
|
Less accumulated depreciation |
|
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(91,781,000 |
) |
|
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(64,458,000 |
) |
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Real estate, net |
|
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1,398,959,000 |
|
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1,165,944,000 |
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Property and related assets held for sale, net of
accumulated depreciation |
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11,805,000 |
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11,493,000 |
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Investment in unconsolidated joint venture |
|
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3,718,000 |
|
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|
3,644,000 |
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Cash and cash equivalents |
|
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21,148,000 |
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|
17,885,000 |
|
Restricted cash |
|
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12,806,000 |
|
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|
11,507,000 |
|
Rents and other receivables, net |
|
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5,086,000 |
|
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|
4,187,000 |
|
Straight-line rents receivable |
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10,492,000 |
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7,870,000 |
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Other assets |
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10,749,000 |
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6,921,000 |
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Deferred charges, net |
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27,874,000 |
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|
22,268,000 |
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Total assets |
|
$ |
1,502,637,000 |
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|
$ |
1,251,719,000 |
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Liabilities and shareholders’ equity |
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Mortgage loans payable |
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$ |
637,045,000 |
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$ |
499,603,000 |
|
Secured revolving credit facility |
|
|
186,890,000 |
|
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|
68,470,000 |
|
Accounts payable, accrued expenses, and other |
|
|
22,755,000 |
|
|
|
17,435,000 |
|
Unamortized intangible lease liabilities |
|
|
56,052,000 |
|
|
|
53,160,000 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
902,742,000 |
|
|
|
638,668,000 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Minority interests in consolidated joint ventures |
|
|
10,321,000 |
|
|
|
9,132,000 |
|
Limited partners’ interest in Operating Partnership |
|
|
25,352,000 |
|
|
|
25,969,000 |
|
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|
|
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Shareholders’ equity: |
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|
|
|
Preferred stock ($.01 par value, $25.00 per share
liquidation value, 12,500,000 and 5,000,000 shares, respectively,
authorized, 3,550,000 shares issued and outstanding) |
|
|
88,750,000 |
|
|
|
88,750,000 |
|
Common stock ($.06 par value, 150,000,000 and 50,000,000 shares,
respectively, authorized, 44,231,000 and 43,773,000 shares,
respectively, issued and outstanding) |
|
|
2,654,000 |
|
|
|
2,626,000 |
|
Treasury stock (613,000 and 502,000 shares, respectively, at cost) |
|
|
(8,156,000 |
) |
|
|
(6,378,000 |
) |
Additional paid-in capital |
|
|
572,017,000 |
|
|
|
564,637,000 |
|
Cumulative distributions in excess of net income |
|
|
(91,153,000 |
) |
|
|
(71,831,000 |
) |
Accumulated other comprehensive income |
|
|
110,000 |
|
|
|
146,000 |
|
|
|
|
|
|
|
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Total shareholders’ equity |
|
|
564,222,000 |
|
|
|
577,950,000 |
|
|
|
|
|
|
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Total liabilities and shareholders’ equity |
|
$ |
1,502,637,000 |
|
|
$ |
1,251,719,000 |
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CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Income
(unaudited)
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Three months ended |
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Nine months ended |
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|
September 30, |
|
September 30, |
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2007 |
|
2006 |
|
2007 |
|
2006 |
| |
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Revenues: |
|
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|
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|
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Rents |
|
$ |
30,487,000 |
|
|
$ |
25,899,000 |
|
|
$ |
88,486,000 |
|
|
$ |
73,860,000 |
|
Expense recoveries |
|
|
6,875,000 |
|
|
|
5,446,000 |
|
|
|
20,822,000 |
|
|
|
16,570,000 |
|
Other |
|
|
115,000 |
|
|
|
246,000 |
|
|
|
568,000 |
|
|
|
739,000 |
|
| |
|
|
|
|
Total revenues |
|
|
37,477,000 |
|
|
|
31,591,000 |
|
|
|
109,876,000 |
|
|
|
91,169,000 |
|
| |
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating, maintenance and management |
|
|
5,660,000 |
|
|
|
5,231,000 |
|
|
|
18,317,000 |
|
|
|
16,666,000 |
|
Real estate and other property-related taxes |
|
|
3,869,000 |
|
|
|
3,265,000 |
|
|
|
10,928,000 |
|
|
|
9,219,000 |
|
General and administrative |
|
|
1,847,000 |
|
|
|
1,431,000 |
|
|
|
7,065,000 |
|
|
|
4,220,000 |
|
Depreciation and amortization |
|
|
10,065,000 |
|
|
|
8,923,000 |
|
|
|
29,696,000 |
|
|
|
25,428,000 |
|
| |
|
|
|
|
Total expenses |
|
|
21,441,000 |
|
|
|
18,850,000 |
|
|
|
66,006,000 |
|
|
|
55,533,000 |
|
| |
|
|
|
|
Operating income |
|
|
16,036,000 |
|
|
|
12,741,000 |
|
|
|
43,870,000 |
|
|
|
35,636,000 |
|
Non-operating income and expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(9,618,000 |
) |
|
|
(8,556,000 |
) |
|
|
(26,371,000 |
) |
|
|
(23,655,000 |
) |
Amortization of deferred financing costs |
|
|
(423,000 |
) |
|
|
(341,000 |
) |
|
|
(1,152,000 |
) |
|
|
(1,003,000 |
) |
Interest income |
|
|
82,000 |
|
|
|
155,000 |
|
|
|
580,000 |
|
|
|
392,000 |
|
Equity in income (loss) of unconsolidated joint ventures |
|
|
150,000 |
|
|
|
— |
|
|
|
463,000 |
|
|
|
(40,000 |
) |
Gain on sale of interest in unconsolidated joint venture |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
141,000 |
|
| |
|
|
|
|
Total non-operating income and expense |
|
|
(9,809,000 |
) |
|
|
(8,742,000 |
) |
|
|
(26,480,000 |
) |
|
|
(24,165,000 |
) |
| |
|
|
|
|
Income before minority and limited partners’ interests
and discontinued operations |
|
|
6,227,000 |
|
|
|
3,999,000 |
|
|
|
17,390,000 |
|
|
|
11,471,000 |
|
Minority interests in consolidated joint ventures |
|
|
(333,000 |
) |
|
|
(324,000 |
) |
|
|
(1,028,000 |
) |
|
|
(943,000 |
) |
Limited partners’ interest in Operating Partnership |
|
|
(169,000 |
) |
|
|
(86,000 |
) |
|
|
(450,000 |
) |
|
|
(234,000 |
) |
| |
|
|
|
|
Income from continuing operations |
|
|
5,725,000 |
|
|
|
3,589,000 |
|
|
|
15,912,000 |
|
|
|
10,294,000 |
|
Discontinued operations, net of limited partners’ interest |
|
|
169,000 |
|
|
|
165,000 |
|
|
|
496,000 |
|
|
|
532,000 |
|
| |
|
|
|
|
Net income |
|
|
5,894,000 |
|
|
|
3,754,000 |
|
|
|
16,408,000 |
|
|
|
10,826,000 |
|
Preferred distribution requirements |
|
|
(1,969,000 |
) |
|
|
(1,969,000 |
) |
|
|
(5,907,000 |
) |
|
|
(5,907,000 |
) |
| |
|
|
|
|
Net income applicable to common shareholders |
|
$ |
3,925,000 |
|
|
$ |
1,785,000 |
|
|
$ |
10,501,000 |
|
|
$ |
4,919,000 |
|
| |
|
|
|
|
Per common share (basic): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of preferred
distribution requirements |
|
$ |
0.09 |
|
|
$ |
0.05 |
|
|
$ |
0.23 |
|
|
$ |
0.14 |
|
Discontinued operations, net of limited partners’ interest |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.02 |
|
| |
|
|
|
|
Net income applicable to common shareholders |
|
$ |
0.09 |
|
|
$ |
0.05 |
|
|
$ |
0.24 |
|
|
$ |
0.16 |
|
| |
|
|
|
|
Per common
share (diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of preferred
distribution requirements |
|
$ |
0.09 |
|
|
$ |
0.05 |
|
|
$ |
0.23 |
|
|
$ |
0.14 |
|
Discontinued operations, net of limited partners’ interest |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
| |
|
|
|
|
Net income applicable to common shareholders |
|
$ |
0.09 |
|
|
$ |
0.05 |
|
|
$ |
0.24 |
|
|
$ |
0.15 |
|
| |
|
|
|
|
Dividends to common shareholders |
|
$ |
9,952,000 |
|
|
$ |
7,752,000 |
|
|
$ |
29,823,000 |
|
|
$ |
21,320,000 |
|
| |
|
|
|
|
Per common share |
|
$ |
0.225 |
|
|
$ |
0.225 |
|
|
$ |
0.675 |
|
|
$ |
0.675 |
|
| |
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,231,000 |
|
|
|
34,484,000 |
|
|
|
44,179,000 |
|
|
|
31,660,000 |
|
| |
|
|
|
|
Diluted |
|
|
44,234,000 |
|
|
|
34,488,000 |
|
|
|
44,183,000 |
|
|
|
31,831,000 |
|
| |
|
|
|
|
CEDAR SHOPPING CENTERS, INC.
Consolidated Statement of Shareholders’ Equity
Nine months ended September 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,408,000 |
|
|
|
|
|
|
|
16,408,000 |
|
Unrealized gain (loss) on change in fair value
of cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(36,000 |
) |
|
|
(36,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,372,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred compensation activity, net |
|
|
|
|
|
|
|
|
|
|
179,000 |
|
|
|
11,000 |
|
|
|
(1,778,000 |
) |
|
|
3,496,000 |
|
|
|
|
|
|
|
|
|
|
|
1,729,000 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,907,000 |
) |
|
|
|
|
|
|
(5,907,000 |
) |
Dividends to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(29,823,000 |
) |
|
|
|
|
|
|
(29,823,000 |
) |
Reallocation adjustment of limited partners’
interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(276,000 |
) |
|
|
|
|
|
|
|
|
|
|
(276,000 |
) |
| |
|
|
Balance, September 30, 2007 |
|
|
3,550,000 |
|
|
$ |
88,750,000 |
|
|
|
44,231,000 |
|
|
$ |
2,654,000 |
|
|
$ |
(8,156,000 |
) |
|
$ |
572,017,000 |
|
|
$ |
(91,153,000 |
) |
|
$ |
110,000 |
|
|
$ |
564,222,000 |
|
| |
|
|
CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Cash Flows
(unaudited)
| |
|
|
|
|
|
|
|
|
| |
|
Nine months ended September 30, |
|
| |
|
2007 |
|
|
2006 |
|
Cash flow from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
16,408,000 |
|
|
$ |
10,826,000 |
|
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 |
|
|
231,000 |
|
|
|
118,000 |
|
Equity in (income) loss of unconsolidated joint ventures |
|
|
(463,000 |
) |
|
|
40,000 |
|
Distributions from unconsolidated joint venture |
|
|
397,000 |
|
|
|
— |
|
Gain on sale of interest in unconsolidated joint venture |
|
|
— |
|
|
|
(141,000 |
) |
Limited partners’ interest in Operating Partnership |
|
|
472,000 |
|
|
|
262,000 |
|
Straight-line rents receivable |
|
|
(2,686,000 |
) |
|
|
(2,452,000 |
) |
Depreciation and amortization |
|
|
29,921,000 |
|
|
|
25,659,000 |
|
Amortization of intangible lease liabilities |
|
|
(7,624,000 |
) |
|
|
(7,713,000 |
) |
Amortization relating to stock-based compensation |
|
|
1,456,000 |
|
|
|
447,000 |
|
Amortization of deferred financing costs |
|
|
1,152,000 |
|
|
|
1,003,000 |
|
Increases/decreases in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Cash at consolidated joint ventures |
|
|
40,000 |
|
|
|
652,000 |
|
Rents and other receivables, net |
|
|
(899,000 |
) |
|
|
(1,087,000 |
) |
Other assets |
|
|
(5,343,000 |
) |
|
|
(4,270,000 |
) |
Accounts payable, accrued expenses and other |
|
|
3,769,000 |
|
|
|
3,263,000 |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
36,831,000 |
|
|
|
26,607,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
|
|
Expenditures for real estate and improvements |
|
|
(134,014,000 |
) |
|
|
(150,468,000 |
) |
Investment in unconsolidated joint ventures |
|
|
(8,000 |
) |
|
|
— |
|
Proceeds from sale of interest in unconsolidated joint venture |
|
|
— |
|
|
|
1,466,000 |
|
Construction escrows and other |
|
|
(1,033,000 |
) |
|
|
(3,621,000 |
) |
|
|
|
|
|
|
|
Net cash (used in) investing activities |
|
|
(135,055,000 |
) |
|
|
(152,623,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
|
Net advances (repayments) from line of credit |
|
|
118,420,000 |
|
|
|
67,650,000 |
|
Proceeds from sales of common stock |
|
|
3,910,000 |
|
|
|
74,053,000 |
|
Proceeds from mortgage financings |
|
|
25,693,000 |
|
|
|
26,333,000 |
|
Mortgage repayments |
|
|
(8,468,000 |
) |
|
|
(5,263,000 |
) |
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 |
|
|
(1,336,000 |
) |
|
|
(1,111,000 |
) |
Preferred distribution requirements |
|
|
(5,907,000 |
) |
|
|
(5,907,000 |
) |
Distributions to common shareholders |
|
|
(29,823,000 |
) |
|
|
(21,320,000 |
) |
Payment of deferred financing costs |
|
|
(2,050,000 |
) |
|
|
(926,000 |
) |
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
101,487,000 |
|
|
|
133,333,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
3,263,000 |
|
|
|
7,317,000 |
|
Cash and cash equivalents at beginning of period |
|
|
17,885,000 |
|
|
|
8,601,000 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
21,148,000 |
|
|
$ |
15,918,000 |
|
|
|
|
|
|
|
|
