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 SECOND QUARTER RESULTS
- - Stabilized Property Occupancy Remains 96% -
- - Company Reiterates Full-Year Guidance -
Port Washington, New York – July 30, 2008 – Cedar Shopping Centers, Inc. (NYSE: CDR) today reported
its financial results for the quarter ended June 30, 2008.
Highlights of Second Quarter 2008 Compared to Second Quarter 2007
| • |
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Net income applicable to common shareholders was $1.2 million ($0.03 per share) as compared
to $2.9 million ($0.07 per share). Net income for each period includes certain one-time
charges. |
| |
| • |
|
Funds from Operations (“FFO”) were $14.4 million ($0.31 per share/OP unit), an increase of
12.3 %. |
| |
| • |
|
Revenues were $42.9 million, an increase of 16.1 %. |
| |
| • |
|
Occupancy for the Company’s stabilized portfolio remained approximately 96% while total
portfolio occupancy, including development and redevelopment properties, remained
approximately 92%. |
Leo Ullman, Cedar’s CEO, stated, “Our second quarter 2008 results indicate the strength of our
operations and effective execution of our business plan in this uncertain financial and economic
environment. We continue to have undiminished occupancy levels featuring strong performing
supermarket tenants with long-term leases. Our portfolio also has minimal exposure to fashion,
luxury, home furnishings and similar potentially challenged tenancies. We remain risk averse in
our approach and we will continue to be vigilant, as always, as we seek enhancement of shareholder
value.”
Financial and Operating Results
Net income applicable to common shareholders was $1.2 million, or $0.03 per share, for the quarter
ended June 30, 2008, as compared to $2.9 million, or $0.07 per share, for the quarter ended June
30, 2007. Net income in the second quarter of 2008 includes, among other things, a one-time
depreciation charge of $1.9 million, or $0.04 per share, taken for the demolition of a building on
the Company’s property in Wyoming, Michigan, as part of the Company’s redevelopment plans for the
property. Net income in the second quarter of 2007 included a one-time charge of approximately
$1.5 million ($0.03 per share) related primarily to the retirement of the Company’s former CFO.
Total revenues for the quarter ended June 30, 2008 increased 16.1% to $42.9 million from $37.0
million for the second quarter ended June 30, 2007.
FFO was $14.4 million, or $0.31 per share/OP unit for the quarter ended June 30, 2008, as compared
to $12.8 million, or $0.28 per share/OP unit for the quarter ended June 30, 2007. FFO for the
second quarter of this year as compared to the second quarter of last year reflects a reduction of
approximately $0.01 per share from the contribution of the nine properties to a joint venture with
Homburg Invest, Inc. that the Company closed late in the fourth quarter 2007 (the joint venture had
a minor effect on net income), substantially offset by the acquisition on March 18, 2008 of the
remaining approximate 75% joint venture interest in four Pennsylvania supermarket-anchored
properties from affiliates of Kimco Realty Corporation. Net income and FFO in the second quarter of 2008 both
reflect an approximate $0.01 per share benefit from lower interest rates applicable to our variable
rate debt. A reconciliation of net income applicable to common shareholders to FFO is contained in
the table accompanying this release.
Cedar’s total revenues for the six months ended June 30, 2008 were $86.6 million as compared to
$73.1 million for the six months ended June 30, 2007. Net income applicable to common shareholders
was $4.3 million, or $0.10 per share, as compared to $6.6 million, or $0.15 per share, for the six
months ended June 30, 2007. FFO was $28.1 million, or $0.61 per share/OP unit, as compared to
$26.5 million, or $0.57 per share/OP unit, for the six months ended June 30, 2007.
Net cash flows provided by operating activities were $28.4 million for the six months ended June
30, 2008 as compared to $24.9 million for the corresponding period of 2007.
Same Property Results
The Company owned 99 properties throughout both the second quarters of 2008 and 2007. Same
property net operating income was $25.5 million in the second quarter of 2008 as compared to $26.3
million in the second quarter of 2007. The overall decrease reflects principally a reduction in
revenue and an increase in expenses in conjunction with the commencement of re-development
activities at certain properties, a reduction in revenue in conjunction with the termination of a
lease in the fourth quarter of 2007 which the Company expects to replace on more favorable terms, a
reduction in percentage rent, and an increase in the provision for doubtful accounts for one
tenant, partially offset by scheduled increases in base rent.
2
Balance Sheet and Capital Position
Total assets were $1.65 billion at June 30, 2008 and $1.60 billion at December 31, 2007. The
Company had total debt outstanding of $934.6 million at June 30, 2008 as compared to $851.5 million
at December 31, 2007 and had $49.9 million available under its secured and unsecured revolving
credit facilities and $7.2 million in available cash at June 30, 2008. The Company implemented a
new cash management system in the second quarter pursuant to which the Company reduced its cash
balance by approximately $13 million and reduced its secured revolving credit facility by a
corresponding amount. At June 30, 2008, the Company’s fixed rate debt was approximately 72% of its
total indebtedness.
The Company has a development pipeline of between $350 and $400 million that it expects to begin to
put into service over the next 8 to 17 months. It expects to fund these activities with borrowings
under its existing revolving credit facility, its newly-completed secured revolving line of credit
for construction/development projects (see below), borrowings under property-specific construction
financing arrangements, excess proceeds from certain financings and refinancings, property sales
proceeds and/or funds from joint ventures.
In June 2008, the Company entered into a $150 million master revolving construction facility that
the Company expects to use to fund a significant amount of its development activities in 2008 and
subsequent years. The Company has also received a conditional commitment from another bank to
provide construction financing for a large single asset development project in Pottsgrove,
Pennsylvania. The Company has secured commitments from substantially all banks involved in the
syndication of this commitment and expects to close that financing during the third quarter of
2008.
Larry Kreider, Cedar’s Chief Financial Officer, noted, “The new construction financing commitments
which we have arranged, coupled with the refinancing activity we have completed to date, as well as
other existing resources we have on hand, provide us with the capital to execute our announced
development and redevelopment plans. We believe our solid balance sheet and prudent approach, along
with the financial strength of our tenants, place the Company in a strong position in the current
economic environment. “
Leasing Activity
In the second quarter of 2008, the Company signed 29 renewal leases aggregating approximately
78,000 sq. ft. with an average increase in base rents of 7.1%, and five new leases aggregating
approximately 16,000 sq. ft. with an average base rent of $19.43 per sq. ft. At different
properties, the Company had 15 terminated leases aggregating approximately 75,000 sq. ft. with
average base rent of $10.66 per sq. ft.
Second Quarter and Subsequent Acquisitions
On April 10, 2008, the Company acquired Stop & Shop Plaza in Bridgeport, Connecticut, an
approximate 55,000 sq. ft. property, for a purchase price of approximately $10.9 million, including
closing costs, financed by (1) the assumption of an existing $7.0 million second
3
mortgage bearing interest at 6.17% per annum and maturing in 2017, and (2) approximately $3.9
million from the Company’s secured revolving credit facility.
Joint Venture Activities
On April 23, 2008 the Company entered into a joint venture for the construction and development of
an estimated 137,000 sq. ft shopping center in Hamilton Township (Stroudsburg), Pennsylvania. Total
project costs, including the purchase of land parcels, are estimated at $37 million. The Company
is committed to paying a development fee of $500,000 and providing up to $9.5 million of equity
capital for a 60% interest in the joint venture, with a cumulative preferred rate of return of
9.25% per annum on its invested funds. The Company’s initial $5.6 million contribution to the joint
venture was funded from its existing secured revolving credit facility. The venture had previously
acquired the land parcels for this project at an aggregate cost of approximately $15.4 million,
incurring mortgage indebtedness of approximately $10.8 million. Approximately $19.0 million remains
available for the project under an existing second mortgage construction/development loan in the
initial amount of $27.8 million.
Financial Guidance
The Company reiterated that for the full year 2008 it expects to report FFO of $1.22 to $1.26 per
share/OP Unit. The Company’s guidance excludes any impact on FFO from new or future development /
redevelopment activities, new acquisitions or dispositions or new joint venture arrangements of
existing properties. Should LIBOR continue at its current rate, the Company’s FFO could benefit by
up to $0.02 per share/OP Unit over the remainder of the year. Conversely, based on the expected
contribution of properties to a second joint venture with Homburg Invest Inc. in the fourth quarter
of 2008, the Company could incur a net reduction in FFO of approximately $0.01 to $0.02 per
share/OP Unit in 2008.
Supplemental Information Package
The Company has issued “Supplemental Financial Information” for the period ended June 30, 2008 and
has filed such information today as an exhibit to Form 8-K, which will also be available on the
Company’s website at 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 June 30, 2008, when available, for further details.
Investor Conference Call
The Company will host a conference call on Thursday, July 31, 2008, at 10:00 AM (EDT) to discuss
the second quarter results. The U.S. dial-in number to call for this teleconference is (888)
218-8172. The international dial-in number is (913) 981-5580. A replay of the conference call will
be available from 2:30 PM (EDT) on August 1 through midnight (EDT) on August 15, 2008 by using U.S.
dial-in number (888) 203-1112 and entering the passcode 3380624 (international
4
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 119 properties
aggregating 12 million square feet of gross leasable area. The Company also owns a substantial
pipeline of development properties as well as approximately 382 acres of generally unimproved land
held primarily for ground-up development projects.
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 the 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 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.
5
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 adjusted FFO-based measure (1) as a criterion 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, 2008 and 2007:
6
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Three months ended June 30, |
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Six months ended June 30, |
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2008 |
|
2007 |
|
2008 |
|
2007 |
| |
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|
|
|
|
|
|
|
|
|
|
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|
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Net income applicable to common shareholders |
|
$ |
1,224,000 |
|
|
$ |
2,921,000 |
|
|
$ |
4,336,000 |
|
|
$ |
6,576,000 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Real estate depreciation and amortization |
|
|
13,939,000 |
|
|
|
9,837,000 |
|
|
|
25,400,000 |
|
|
|
19,667,000 |
|
Limited partners’ interest |
|
|
56,000 |
|
|
|
132,000 |
|
|
|
199,000 |
|
|
|
295,000 |
|
Minority interests in consolidated joint ventures |
|
|
482,000 |
|
|
|
300,000 |
|
|
|
1,188,000 |
|
|
|
695,000 |
|
Minority interests’ share of FFO applicable to
consolidated joint ventures |
|
|
(1,417,000 |
) |
|
|
(426,000 |
) |
|
|
(3,198,000 |
) |
|
|
(917,000 |
) |
Equity in income of unconsolidated joint venture |
|
|
(222,000 |
) |
|
|
(157,000 |
) |
|
|
(372,000 |
) |
|
|
(313,000 |
) |
FFO from unconsolidated joint venture |
|
|
355,000 |
|
|
|
234,000 |
|
|
|
581,000 |
|
|
|
468,000 |
|
| |
|
|
|
|
Funds From Operations |
|
$ |
14,417,000 |
|
|
$ |
12,841,000 |
|
|
$ |
28,134,000 |
|
|
$ |
26,471,000 |
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FFO per common share (assuming conversion of OP Units): |
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|
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Basic |
|
$ |
0.31 |
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|
$ |
0.28 |
|
|
$ |
0.61 |
|
|
$ |
0.57 |
|
| |
|
|
|
|
Diluted |
|
$ |
0.31 |
|
|
$ |
0.28 |
|
|
$ |
0.61 |
|
|
$ |
0.57 |
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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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44,464,000 |
|
|
|
44,194,000 |
|
|
|
44,461,000 |
|
|
|
44,153,000 |
|
Additional shares assuming conversion of OP Units (basic) |
|
|
2,029,000 |
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|
1,984,000 |
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|
|
2,030,000 |
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|
1,985,000 |
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|
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Shares used in determination of basic FFO per share |
|
|
46,493,000 |
|
|
|
46,178,000 |
|
|
|
46,491,000 |
|
|
|
46,138,000 |
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|
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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Shares used in determination of diluted earnings per share |
|
|
44,466,000 |
|
|
|
44,198,000 |
|
|
|
44,462,000 |
|
|
|
44,158,000 |
|
Additional shares assuming conversion of OP Units (diluted) |
|
|
2,029,000 |
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|
|
1,997,000 |
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|
2,030,000 |
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|
1,998,000 |
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Shares used in determination of diluted FFO per share |
|
|
46,495,000 |
|
|
|
46,195,000 |
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|
46,492,000 |
|
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|
46,156,000 |
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CEDAR SHOPPING CENTERS, INC.
Consolidated Balance Sheets
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June 30, |
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December 31, |
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2008 |
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2007 |
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(unaudited) |
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Assets |
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Real estate: |
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|
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Land |
|
$ |
369,813,000 |
|
|
$ |
315,599,000 |
|
Buildings and improvements |
|
|
1,320,355,000 |
|
|
|
1,282,180,000 |
|
|
|
|
|
|
|
|
|
|
|
1,690,168,000 |
|
|
|
1,597,779,000 |
|
Less accumulated depreciation |
|
|
(125,023,000 |
) |
|
|
(103,621,000 |
) |
|
|
|
|
|
|
|
Real estate, net |
|
|
1,565,145,000 |
|
|
|
1,494,158,000 |
|
|
|
|
|
|
|
|
|
|
Investment in unconsolidated joint venture |
|
|
4,791,000 |
|
|
|
3,757,000 |
|
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Cash and cash equivalents |
|
|
7,203,000 |
|
|
|
20,307,000 |
|
Restricted cash |
|
|
19,508,000 |
|
|
|
17,839,000 |
|
Rents and other receivables, net |
|
|
6,920,000 |
|
|
|
7,640,000 |
|
Straight-line rents receivable |
|
|
12,927,000 |
|
|
|
11,446,000 |
|
Other assets |
|
|
6,472,000 |
|
|
|
9,778,000 |
|
Deferred charges, net |
|
|
31,653,000 |
|
|
|
30,059,000 |
|
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|
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|
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Total assets |
|
$ |
1,654,619,000 |
|
|
$ |
1,594,984,000 |
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Liabilities and shareholders’ equity |
|
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|
|
|
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Mortgage loans payable |
|
$ |
680,258,000 |
|
|
$ |
661,074,000 |
|
Secured revolving credit facility |
|
|
254,390,000 |
|
|
|
190,440,000 |
|
Accounts payable and accrued expenses |
|
|
23,412,000 |
|
|
|
26,068,000 |
|
Unamortized intangible lease liabilities |
|
|
68,722,000 |
|
|
|
71,157,000 |
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Total liabilities |
|
|
1,026,782,000 |
|
|
|
948,739,000 |
|
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|
|
|
|
|
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|
|
|
|
|
|
|
|
Minority interests in consolidated joint ventures |
|
|
58,688,000 |
|
|
|
62,402,000 |
|
Limited partners’ interest in Operating Partnership |
|
|
24,414,000 |
|
|
|
25,689,000 |
|
|
|
|
|
|
|
|
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|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock ($.01 par value, $25.00 per share
liquidation value, 12,500,000 shares authorized, 3,550,000
shares issued and outstanding) |
|
|
88,750,000 |
|
|
|
88,750,000 |
|
Common stock ($.06 par value, 150,000,000 shares authorized
44,488,000 and 44,238,000 shares, respectively, issued and
outstanding) |
|
|
2,669,000 |
|
|
|
2,654,000 |
|
Treasury stock (719,000 and 616,000 shares, respectively, at cost) |
|
|
(9,240,000 |
) |
|
|
(8,192,000 |
) |
Additional paid-in capital |
|
|
575,136,000 |
|
|
|
572,392,000 |
|
Cumulative distributions in excess of net income |
|
|
(113,185,000 |
) |
|
|
(97,514,000 |
) |
Accumulated other comprehensive income |
|
|
605,000 |
|
|
|
64,000 |
|
|
|
|
|
|
|
|
Total shareholders’ equity |
|
|
544,735,000 |
|
|
|
558,154,000 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
1,654,619,000 |
|
|
$ |
1,594,984,000 |
|
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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, |
| |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
| |
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rents |
|
$ |
34,652,000 |
|
|
$ |
30,015,000 |
|
|
$ |
69,032,000 |
|
|
$ |
58,579,000 |
|
Expense recoveries |
|
|
8,088,000 |
|
|
|
6,834,000 |
|
|
|
17,136,000 |
|
|
|
14,109,000 |
|
Other |
|
|
175,000 |
|
|
|
101,000 |
|
|
|
382,000 |
|
|
|
453,000 |
|
| |
|
|
|
|
Total revenues |
|
|
42,915,000 |
|
|
|
36,950,000 |
|
|
|
86,550,000 |
|
|
|
73,141,000 |
|
| |
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating, maintenance and management |
|
|
7,114,000 |
|
|
|
5,690,000 |
|
|
|
15,324,000 |
|
|
|
12,767,000 |
|
Real estate and other property-related taxes |
|
|
4,758,000 |
|
|
|
3,623,000 |
|
|
|
9,459,000 |
|
|
|
7,200,000 |
|
General and administrative |
|
|
2,323,000 |
|
|
|
3,220,000 |
|
|
|
4,514,000 |
|
|
|
5,218,000 |
|
Depreciation and amortization |
|
|
14,007,000 |
|
|
|
9,898,000 |
|
|
|
25,536,000 |
|
|
|
19,781,000 |
|
| |
|
|
|
|
Total expenses |
|
|
28,202,000 |
|
|
|
22,431,000 |
|
|
|
54,833,000 |
|
|
|
44,966,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
14,713,000 |
|
|
|
14,519,000 |
|
|
|
31,717,000 |
|
|
|
28,175,000 |
|
Non-operating income and expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, including amortization of
deferred financing costs |
|
|
(11,279,000 |
) |
|
|
(9,562,000 |
) |
|
|
(22,663,000 |
) |
|
|
(17,482,000 |
) |
Interest income |
|
|
77,000 |
|
|
|
223,000 |
|
|
|
235,000 |
|
|
|
498,000 |
|
Equity in income of unconsolidated joint venture |
|
|
222,000 |
|
|
|
157,000 |
|
|
|
372,000 |
|
|
|
313,000 |
|
| |
|
|
|
|
Total non-operating income and expense |
|
|
(10,980,000 |
) |
|
|
(9,182,000 |
) |
|
|
(22,056,000 |
) |
|
|
(16,671,000 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before minority and limited partners’ interests |
|
|
3,733,000 |
|
|
|
5,337,000 |
|
|
|
9,661,000 |
|
|
|
11,504,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interests in consolidated joint ventures |
|
|
(482,000 |
) |
|
|
(300,000 |
) |
|
|
(1,188,000 |
) |
|
|
(695,000 |
) |
Limited partners’ interest in Operating Partnership |
|
|
(56,000 |
) |
|
|
(132,000 |
) |
|
|
(199,000 |
) |
|
|
(295,000 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
3,195,000 |
|
|
|
4,905,000 |
|
|
|
8,274,000 |
|
|
|
10,514,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred distribution requirements |
|
|
(1,971,000 |
) |
|
|
(1,984,000 |
) |
|
|
(3,938,000 |
) |
|
|
(3,938,000 |
) |
| |
|
|
|
|
Net income applicable to common shareholders |
|
$ |
1,224,000 |
|
|
$ |
2,921,000 |
|
|
$ |
4,336,000 |
|
|
$ |
6,576,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.03 |
|
|
$ |
0.07 |
|
|
$ |
0.10 |
|
|
$ |
0.15 |
|
| |
|
|
|
|
Diluted |
|
$ |
0.03 |
|
|
$ |
0.07 |
|
|
$ |
0.10 |
|
|
$ |
0.15 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to common shareholders |
|
$ |
10,003,000 |
|
|
$ |
9,942,000 |
|
|
$ |
20,007,000 |
|
|
$ |
19,871,000 |
|
Per common share |
|
$ |
0.225 |
|
|
$ |
0.225 |
|
|
$ |
0.450 |
|
|
$ |
0.450 |
|
| |
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,464,000 |
|
|
|
44,194,000 |
|
|
|
44,461,000 |
|
|
|
44,153,000 |
|
| |
|
|
|
|
Diluted |
|
|
44,466,000 |
|
|
|
44,198,000 |
|
|
|
44,462,000 |
|
|
|
44,158,000 |
|
| |
|
|
|
|
CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Cash Flows
(unaudited)
| |
|
|
|
|
|
|
|
|
| |
|
Six months ended June 30, |
|
| |
|
2008 |
|
|
2007 |
|
Cash flow from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
8,274,000 |
|
|
$ |
10,514,000 |
|
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 |
|
|
949,000 |
|
|
|
163,000 |
|
Equity in income of unconsolidated joint venture |
|
|
(372,000 |
) |
|
|
(313,000 |
) |
Distributions from unconsolidated joint venture |
|
|
434,000 |
|
|
|
265,000 |
|
Limited partners’ interest in Operating Partnership |
|
|
199,000 |
|
|
|
295,000 |
|
Straight-line rents receivable |
|
|
(1,481,000 |
) |
|
|
(1,806,000 |
) |
Depreciation and amortization |
|
|
25,536,000 |
|
|
|
19,781,000 |
|
Amortization of intangible lease liabilities |
|
|
(6,904,000 |
) |
|
|
(5,098,000 |
) |
Amortization relating to stock-based compensation |
|
|
1,341,000 |
|
|
|
1,154,000 |
|
Amortization of deferred financing costs |
|
|
799,000 |
|
|
|
729,000 |
|
Increases/decreases in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Cash at consolidated joint ventures |
|
|
(266,000 |
) |
|
|
87,000 |
|
Rents and other receivables, net |
|
|
720,000 |
|
|
|
(453,000 |
) |
Other |
|
|
267,000 |
|
|
|
(23,000 |
) |
Accounts payable and accrued expenses |
|
|
(1,142,000 |
) |
|
|
(395,000 |
) |
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
28,354,000 |
|
|
|
24,900,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
|
|
Expenditures for real estate and improvements |
|
|
(50,439,000 |
) |
|
|
(92,646,000 |
) |
Purchase of consolidated joint venture minority interests |
|
|
(17,454,000 |
) |
|
|
— |
|
Investment in unconsolidated joint venture |
|
|
(1,094,000 |
) |
|
|
(8,000 |
) |
Construction escrows and other |
|
|
(1,299,000 |
) |
|
|
(474,000 |
) |
|
|
|
|
|
|
|
Net cash (used in) investing activities |
|
|
(70,286,000 |
) |
|
|
(93,128,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
|
Net advances from line of credit |
|
|
63,950,000 |
|
|
|
70,520,000 |
|
Proceeds from sales of common stock |
|
|
— |
|
|
|
3,910,000 |
|
Redemption of Operating Partnership Units |
|
|
(122,000 |
) |
|
|
— |
|
Proceeds from mortgage financings |
|
|
27,562,000 |
|
|
|
23,000,000 |
|
Mortgage repayments |
|
|
(40,058,000 |
) |
|
|
(4,125,000 |
) |
Contribution from minority interest partners, net |
|
|
4,269,000 |
|
|
|
1,048,000 |
|
Distributions in excess of earnings from consolidated joint venture
minority interests |
|
|
(27,000 |
) |
|
|
— |
|
Distributions to limited partners |
|
|
(913,000 |
) |
|
|
(890,000 |
) |
Preferred distribution requirements |
|
|
(3,938,000 |
) |
|
|
(3,938,000 |
) |
Distributions to common shareholders |
|
|
(20,007,000 |
) |
|
|
(19,871,000 |
) |
Payments of deferred financing costs, net |
|
|
(1,888,000 |
) |
|
|
(1,053,000 |
) |
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
28,828,000 |
|
|
|
68,601,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
(13,104,000 |
) |
|
|
373,000 |
|
Cash and cash equivalents at beginning of period |
|
|
20,307,000 |
|
|
|
17,885,000 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
7,203,000 |
|
|
$ |
18,258,000 |
|
|
|
|
|
|
|
|
