CEDAR SHOPPING CENTERS, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
SEPTEMBER 30, 2004
(UNAUDITED)
CEDAR SHOPPING CENTERS, INC.
44 SOUTH BAYLES AVENUE
PORT WASHINGTON, NY 11050
TEL: (516) 767-6492 FAX: (516) 767-6497
WWW.CEDARSHOPPINGCENTERS.COM
CEDAR SHOPPING CENTERS, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
SEPTEMBER 30, 2004
(UNAUDITED)
TABLE OF CONTENTS
-----------------
Disclosures.............................................................. 3
Summary Financial Data................................................... 5
Consolidated Balance Sheets Information (wholly-owned and joint
venture properties)................................................ 7
Consolidated Statements of Operations Information (wholly-owned
and joint venture properties)...................................... 8
Reconciliation of Net Income (Loss) to Funds From Operations ("FFO")
and Adjusted Funds From Operation ("AFFO")......................... 10
Property Summary ........................................................ 11
Debt Summary ............................................................ 14
Consolidated Joint Ventures Information.................................. 16
Tenant Concentration Schedule............................................ 17
Lease Expiration Schedule................................................ 18
2
CEDAR SHOPPING CENTERS, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
SEPTEMBER 30, 2004
(UNAUDITED)
DISCLOSURES
- -----------
FORWARD LOOKING STATEMENTS
- --------------------------
Statements made or incorporated by reference in the Supplemental
Financial Information include certain "forward-looking statements".
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 belief, expectations, or
intentions regarding future performance or future events or trends. While
forward-looking statements reflect good faith beliefs, 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 a
difference 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 eastern United States in particular; the financial
viability of our tenants; the continuing availability of shopping center
acquisitions, and development and redevelopment opportunities, on favorable
terms; the availability of equity and debt capital in the public and private
markets; the fact that returns from development, redevelopment and acquisition
activities may not be at expected levels; the Company's potential inability to
realize the level of proceeds from property sales as initially expected;
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, 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 refinance debt obligations when due.
BASIS OF PRESENTATION
- ---------------------
The information contained in the Supplemental Financial Information is
unaudited and does not purport to disclose all items required by GAAP. The
information contained herein should be read in conjunction with the Company's
Form 10-K for the year ended December 31, 2003 and Form 10-Q for the quarter
ended September 30, 2004.
Cedar Shopping Centers Partnership, L.P. (the "OP") is the entity
through which the Company conducts substantially all of its business and owns
(either directly or through subsidiaries) substantially all of its assets. As of
September 30, 2004 and December 31, 2003, respectively, the Company owned
approximately a 97.3% and a 97.4% economic interest in, and was the sole general
partner of, the OP. The limited partners' interest in the OP is evidenced by
Operating Partnership Units ("OP Units"), which are economically equivalent to,
and convertible into, shares of the Company's common stock on a one-for-one
basis. With respect to its joint ventures, the Company has general partnership
interests ranging from 20% to 50% and, as the Company is the sole general
partner and exercises substantial operating control over these entities, such
partnerships are consolidated in the Company's financial statements.
3
USE OF FUNDS FROM OPERATIONS ("FFO") AS A NON-GAAP FINANCIAL MEASURE
- --------------------------------------------------------------------
The Company considers FFO to be a relevant and meaningful supplemental
measure of the performance of the Company because it is predicated on a cash
flow analysis, contrasted with net income, a measure predicated on GAAP, which
gives effect to non-cash items such as depreciation and amortization. The
Company computes FFO in accordance with the "White Paper" on FFO published by
the National Association of Real Estate Investment Trusts ("NAREIT"), as income
before allocation to minority interests (computed in accordance with GAAP),
excluding gains or losses from debt restructurings and sales of property, plus
depreciation and amortization, and after preferred stock distribution
requirements and adjustments for any unconsolidated partnerships and joint
ventures. Adjustments for unconsolidated partnerships and joint ventures would
be computed to reflect FFO on the same basis. In computing FFO, the Company does
not add back to net income the amortization of costs incurred in connection with
its financing or hedging activities or depreciation of non-real estate assets,
but would add back to net income those items that are defined as "extraordinary"
under GAAP. FFO does not represent cash generated from operating activities in
accordance with GAAP and should not be considered as an alternative to cash flow
as a measure of liquidity. Since the NAREIT White Paper only provides guidelines
for computing FFO, the computation of FFO may vary from one company to another.
FFO is not necessarily indicative of cash available to fund ongoing cash needs.
4
CEDAR SHOPPING CENTERS, INC.
SUMMARY FINANCIAL DATA
(UNAUDITED)
SEPTEMBER 30, DECEMBER 31,
2004 2003
------------ ------------
Equity market capitalization (end of period):
Common shares outstanding 16,456,011 16,456,011
OP Units outstanding 454,469 439,421
Closing market price $ 13.95 $ 12.42
8-7/8 Series A Cumulative Redeemable
Preferred Stock shares outstanding 2,350,000 -
Closing market price $ 26.20 $ -
Equity market capitalization $297,471,000 $209,841,000
Pro rata share of outstanding debt 140,947,000 125,287,000
------------ ------------
Total capitalization $438,418,000 $335,128,000
============ ============
Ratio of pro rata share of outstanding debt
to total capitalization 32.1% 37.4%
============ ============
THREE MONTHS ENDED SEPTEMBER 30,
--------------------------------
2004 2003
------------- ------------
Total revenues $ 12,464,000 $ 6,671,000
Net income (loss) $ 1,208,000 $ (228,000)
Per common share $ 0.07 $ (0.96)
Dividends to common shareholders $ 3,703,000 $ -
Per common share $ 0.225 $ -
Average number of common shares outstanding 16,456,000 238,000
FFO $ 3,691,000 $ (194,000)
Per common share/OP unit $ 0.22 $ (0.24)
AFFO $ 3,221,000 $ (406,000)
Per common share/OP unit $ 0.19 $ (0.50)
Avg. no. of common shares/OP units outstanding 16,910,000 806,000
NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------
2004 2003
------------- ------------
Total revenues $ 36,406,000 $ 18,094,000
Net income (loss) $ 4,454,000 $ (467,000)
Per common share $ 0.27 $ (1.78)
Dividends to common shareholders $ 10,038,000 $ -
Per common share $ 0.610 $ -
Average number of common shares outstanding 16,456,000 263,000
FFO $ 11,313,000 $ (11,000)
Per common share/OP unit $ 0.67 $ (0.01)
AFFO $ 9,649,000 $ (570,000)
Per common share/OP unit $ 0.57 $ (0.69)
Avg. no. of common shares/OP units outstanding 16,905,000 831,000
5
CEDAR SHOPPING CENTERS, INC.
SUMMARY FINANCIAL DATA
(UNAUDITED)
(CONTINUED)
SEPTEMBER 30, DECEMBER 31,
2004 2003
------------ ------------
Real estate, net 391,581,000 324,531,000
Other assets 31,336,000 25,116,000
------------ ------------
Total assets $422,917,000 $349,647,000
============ ============
Total debt $177,552,000 $161,983,000
Other liabilities 26,700,000 20,046,000
Minority interests 12,201,000 12,435,000
Limited partners' interest in OP 4,095,000 4,035,000
Shareholders' equity 202,369,000 151,148,000
------------ ------------
Total liabilities and equity $422,917,000 $349,647,000
============ ============
Fixed-rate mortgages $124,821,000 $116,062,000
Variable-rate mortgages 23,781,000 28,921,000
------------ ------------
Total mortgages 148,602,000 144,983,000
Secured revolving credit facility 28,950,000 17,000,000
------------ ------------
Total debt $177,552,000 $161,983,000
============ ============
Pro rata share of total debt $140,946,700 $125,287,000
============ ============
Weighted average interest rates:
Fixed-rate mortgages 7.2% 7.2%
Variable-rate mortgages 4.5% 4.7%
Total mortgages 6.8% 6.7%
Secured revolving credit facility 4.0% 3.4%
Total debt 6.3% 6.4%
6
CEDAR SHOPPING CENTERS, INC.
CONSOLIDATED BALANCE SHEETS INFORMATION
(UNAUDITED)
SEPTEMBER 30, 2004 DECEMBER 31, 2003
--------------------------------------------- -------------------------------------------
JOINT VENTURE WHOLLY-OWNED JOINT VENTURE WHOLLY-OWNED
TOTAL PROPERTIES PROPERTIES TOTAL PROPERTIES PROPERTIES
--------------------------------------------- -------------------------------------------
Assets:
Real estate:
Land $ 75,272,000 $14,408,000 $ 60,864,000 $ 61,774,000 $14,408,000 $ 47,366,000
Buildings and improvements 329,369,000 53,254,000 276,115,000 269,031,000 52,756,000 216,275,000
--------------------------------------------- -------------------------------------------
404,641,000 67,662,000 336,979,000 330,805,000 67,164,000 263,641,000
Less accumulated depreciation (13,060,000) (2,683,000) (10,377,000) (6,274,000) (1,663,000) (4,611,000)
--------------------------------------------- -------------------------------------------
Real estate, net 391,581,000 64,979,000 326,602,000 324,531,000 65,501,000 259,030,000
Cash and cash equivalents 7,093,000 - 7,093,000 6,154,000 - 6,154,000
Cash at joint ventures 929,000 929,000 - 1,003,000 1,003,000 -
Construction / improvement and other
escrows 5,314,000 743,000 4,571,000 5,205,000 790,000 4,415,000
Receivables:
Rents and other, net 1,686,000 245,000 1,441,000 2,098,000 (46,000) 2,144,000
Straight-line rents 2,076,000 638,000 1,438,000 1,171,000 442,000 729,000
Real estate tax and other deposits 2,325,000 391,000 1,934,000 1,935,000 470,000 1,465,000
Prepaid expenses 3,314,000 537,000 2,777,000 1,065,000 192,000 873,000
Deferred charges, net:
Leasing costs 4,939,000 159,000 4,780,000 3,206,000 30,000 3,176,000
Financing costs 2,663,000 707,000 1,956,000 1,874,000 786,000 1,088,000
Interest rate swaps/caps 743,000 - 743,000 1,339,000 - 1,339,000
Other 254,000 - 254,000 66,000 - 66,000
--------------------------------------------- -------------------------------------------
Total assets $422,917,000 $69,328,000 $353,589,000 $349,647,000 $69,168,000 $280,479,000
============================================= ===========================================
Liabilities and shareholders' equity:
Mortgage loans payable $148,602,000 $50,391,000 $ 98,211,000 $144,983,000 $50,379,000 $ 94,604,000
Secured revolving credit facility 28,950,000 - 28,950,000 17,000,000 - 17,000,000
Accounts payable and accrued expenses 4,282,000 306,000 3,976,000 3,931,000 444,000 3,487,000
Tenant advance payments and security
deposits 2,561,000 396,000 2,165,000 1,685,000 403,000 1,282,000
Deferred liabilities:
Intangible lease liabilities 18,846,000 1,224,000 17,622,000 13,552,000 1,345,000 12,207,000
Discounted mortgage values 716,000 - 716,000 500,000 - 500,000
Unrealized losses on derivative
financial instruments 295,000 238,000 57,000 378,000 247,000 131,000
--------------------------------------------- -------------------------------------------
Total liabilities 204,252,000 52,555,000 151,697,000 182,029,000 52,818,000 129,211,000
--------------------------------------------- -------------------------------------------
Minority interests 12,201,000 12,201,000 - 12,435,000 12,435,000 -
Limited partners' interest in
consolidated OP 4,095,000 123,000 3,972,000 4,035,000 102,000 3,933,000
Equity (a) 202,369,000 4,449,000 197,920,000 151,148,000 3,813,000 147,335,000
--------------------------------------------- -------------------------------------------
Total liabilities and equity $422,917,000 $69,328,000 $353,589,000 $349,647,000 $69,168,000 $280,479,000
============================================= ===========================================
(a) Equity includes net receivable/payable balances, on open account, between
joint venture and wholly-owned properties.
7
CEDAR SHOPPING CENTERS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION (A)
(UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30,
--------------------------------------------------------------------------------
2004 2003
--------------------------------------- --------------------------------------
JOINT VENTURE WHOLLY-OWNED JOINT VENTURE WHOLLY-OWNED
TOTAL PROPERTIES PROPERTIES TOTAL PROPERTIES PROPERTIES
--------------------------------------- --------------------------------------
Revenues:
Rents:
Base rents $ 9,178,000 $ 1,770,000 $ 7,408,000 $4,730,000 $2,677,000 $2,053,000
Percentage rents 70,000 1,000 69,000 (8,000) 2,000 (10,000)
Straight-line rents 260,000 63,000 197,000 200,000 130,000 70,000
Amortization of intangible lease liabilities 579,000 32,000 547,000 277,000 45,000 232,000
-------------------------------------- --------------------------------------
10,087,000 1,866,000 8,221,000 5,199,000 2,854,000 2,345,000
Expense recoveries 2,253,000 331,000 1,922,000 1,452,000 632,000 820,000
Interest and other 124,000 - 124,000 20,000 12,000 8,000
-------------------------------------- --------------------------------------
Total revenues 12,464,000 2,197,000 10,267,000 6,671,000 3,498,000 3,173,000
Expenses:
Operating, maintenance and management 2,349,000 305,000 2,044,000 1,594,000 562,000 1,032,000
Real estate and other property-related taxes 1,363,000 220,000 1,143,000 662,000 354,000 308,000
General and administrative 706,000 - 706,000 355,000 - 355,000
Depreciation and amortization 3,158,000 378,000 2,780,000 1,150,000 646,000 504,000
Interest 2,462,000 946,000 1,516,000 3,243,000 1,501,000 1,742,000
-------------------------------------- --------------------------------------
Total expenses 10,038,000 1,849,000 8,189,000 7,004,000 3,063,000 3,941,000
Income (loss) before the following: 2,426,000 348,000 2,078,000 (333,000) 435,000 (768,000)
Minority interests (274,000) (274,000) - (367,000) (367,000) -
Limited partners' interest (58,000) (2,000) (56,000) 490,000 (48,000) 538,000
Preferred distribution requirements (886,000) - (886,000) (18,000) - (18,000)
-------------------------------------- --------------------------------------
Net income (loss) $ 1,208,000 $ 72,000 $ 1,136,000 ($228,000) $ 20,000 ($248,000)
====================================== ======================================
Net income (loss) per common share $0.07 $0.00 $0.07 ($0.96) $0.08 ($1.04)
====================================== ======================================
Average number of common shares
outstanding 16,456,000 16,456,000 16,456,000 238,000 238,000 238,000
====================================== ======================================
8
CEDAR SHOPPING CENTERS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION (A)
(UNAUDITED)
(CONTINUED)
NINE MONTHS ENDED SEPTEMBER 30,
-----------------------------------------------------------------------------------
2004 2003
------------------------------------------ ----------------------------------------
JOINT VENTURE WHOLLY-OWNED JOINT VENTURE WHOLLY-OWNED
TOTAL PROPERTIES PROPERTIES TOTAL PROPERTIES PROPERTIES
----------------------------------------- ---------------------------------------
Revenues:
Rents:
Base rents $26,001,000 $ 5,256,000 $20,745,000 $12,841,000 $7,110,000 $ 5,731,000
Percentage rents 374,000 20,000 354,000 171,000 48,000 123,000
Straight-line rents 905,000 204,000 701,000 520,000 350,000 170,000
Amortization of intangible lease liabilities 1,555,000 114,000 1,441,000 590,000 108,000 482,000
----------------------------------------- ----------- -------------------------
28,835,000 5,594,000 23,241,000 14,122,000 7,616,000 6,506,000
Expense recoveries 7,188,000 1,257,000 5,931,000 3,912,000 1,630,000 2,282,000
Interest and other 383,000 11,000 372,000 60,000 18,000 42,000
----------------------------------------- ----------- -------------------------
Total revenues 36,406,000 6,862,000 29,544,000 18,094,000 9,264,000 8,830,000
Expenses:
Operating, maintenance and management 7,746,000 1,056,000 6,690,000 4,784,000 1,578,000 3,206,000
Real estate and other property-related taxes 3,707,000 655,000 3,052,000 1,895,000 997,000 898,000
General and administrative 2,333,000 - 2,333,000 1,542,000 - 1,542,000
Depreciation and amortization 8,714,000 1,123,000 7,591,000 2,917,000 1,694,000 1,223,000
Interest 7,561,000 2,949,000 4,612,000 7,533,000 4,049,000 3,484,000
----------------------------------------- ----------- -------------------------
Total expenses 30,061,000 5,783,000 24,278,000 18,671,000 8,318,000 10,353,000
Income (loss) before the following: 6,345,000 1,079,000 5,266,000 (577,000) 946,000 (1,523,000)
Minority interests (858,000) (858,000) - (790,000) (790,000) -
Limited partners' interest (147,000) (6,000) (141,000) 939,000 (107,000) 1,046,000
Preferred distribution requirements (886,000) - (886,000) (39,000) - (39,000)
----------------------------------------- ---------------------------------------
Net income (loss) $ 4,454,000 $ 215,000 $ 4,239,000 ($467,000) $ 49,000 ($516,000)
========================================= =======================================
Net income (loss) per common share $0.27 $0.01 $0.26 ($1.78) $0.18 ($1.96)
========================================= =======================================
Average number of common shares
outstanding 16,456,000 16,456,000 16,456,000 263,000 263,000 263,000
========================================= =======================================
(a) In connection with the public offering concluded during the fourth quarter
of 2003, the Company acquired a 100 % interest in several of the properties that
were previously owned in joint venture, as well as the limited partner's
approximately 70% interest in the OP. The results of operations of the
properties which remain jointly-owned througout both years are summarized as
follows (for comparability, the limited partners' interest for all periods
reflect the 2004 position):
Three months ended Nine months ended
September 30, September 30,
---------------------------- -----------------------------
2004 2003 2004 2003
---------------------------- -----------------------------
Revenues $2,197,000 $2,015,000 $6,862,000 $5,834,000
Expenses 1,849,000 1,758,000 5,783,000 5,153,000
---------------------------- -----------------------------
Operating income 348,000 257,000 1,079,000 681,000
Minority interests (274,000) (216,000) (858,000) (590,000)
Limited partners' interest (2,000) (1,000) (6,000) (2,000)
---------------------------- -----------------------------
Net income $ 72,000 $ 40,000 $ 215,000 $ 89,000
============================ =============================
9
CEDAR SHOPPING CENTERS, INC.
RECONCILIATION OF NET INCOME (LOSS) TO
FUNDS FROM OPERATIONS ("FFO") AND
ADJUSTED FUNDS FROM OPERATIONS ("AFFO")
(UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
----------------------------- ------------------------------
2004 2003 2004 2003
------------ ------------- ------------ -------------
Net income (loss) (1) $ 1,208,000 $ (228,000) $ 4,454,000 $ (467,000)
Add (deduct):
Depreciation and amortization 2,671,000 914,000 7,369,000 2,434,000
Limited partners' interest 58,000 (490,000) 147,000 (939,000)
Limited partners' share of preferred distribution
requirements (25,000) (43,000) (25,000) (91,000)
Minority interests 274,000 367,000 858,000 790,000
Minority interests' share of FFO (495,000) (714,000) (1,490,000) (1,738,000)
------------ ------------ ------------ ------------
FFO 3,691,000 (194,000) 11,313,000 (11,000)
Add (deduct):
Straight-line rents (260,000) (200,000) (905,000) (520,000)
Minority interests' share of straight-line rents 53,000 109,000 171,000 282,000
Provision for tenant improvements and capital
expenditures (2) (440,000) (240,000) (1,259,000) (638,000)
Minority interests' share of provision for tenant
improvements and capital expenditures (2) 76,000 119,000 228,000 317,000
Pre-occupancy rents received in connection with
the Camp Hill redevelopment project 101,000 -- 101,000 --
------------ ------------ ------------ ------------
AFFO $ 3,221,000 $ (406,000) $ 9,649,000 $ (570,000)
============ ============ ============ ============
FFO per common share/unit outstanding $ 0.22 $ (0.24) $ 0.67 $ (0.01)
AFFO per common share/unit outstanding $ 0.19 $ (0.50) $ 0.57 $ (0.69)
============ ============ ============ ============
Average common shares/OP units outstanding (3) 16,910,000 806,000 16,905,000 831,000
============ ============ ============ ============
(1) Net income (loss) includes amortization of intangible lease liabilities of
$579,999, $277,000, $1,555,000 and $590,000, respectively. The minority
interests' share of such amortization was $36,000, $40,000, $111,000 and
$103,000, respectively. Net income (loss) also includes a charge for the
ineffective portion of the change in the fair value of the Company's derivative
financial instruments of $236,000, $0, $596,000, and $0, respectively. Minority
interests did not share in such charge.
(2) The provision for tenant improvements and capital expenditures is calculated
at the rate of $0.55 per sq. ft. per annum on the respective properties,
excluding development/redevelopment properties.
(3) Assumes conversion of OP Units.
10
CEDAR SHOPPING CENTERS, INC.
PROPERTY SUMMARY
AS OF SEPTEMBER 30, 2004
GROSS
LEASABLE YEAR BUILT/ NUMBER
YEAR PERCENT AREA YEAR LAST OF PERCENT
PROPERTY ACQUIRED OWNED "GLA" RENOVATED TENANTS OCCUPIED
- --------------------------------------------------------------------------------------------------------
STABILIZED PROPERTIES:
The Point Shopping Center 2000 100% 255,447 1972/2001 19 93%
Harrisburg, PA
Port Richmond Village 2001 100% 154,908 1988 31 100%
Philadelphia, PA
Academy Plaza 2001 100% 152,878 1965/1998 34 100%
Philadelphia, PA
Washington Center Shoppes 2001 100% 154,240 1979/1995 28 98%
Washington Township, NJ
Red Lion Shopping Center 2002 20% 224,269 1970/2000 17 87%
Philadelphia, PA
Loyal Plaza 2002 25% 293,931 1969/2000 24 92%
Williamsport, PA
LA Fitness Facility 2002 50% 41,000 2003 1 100%
Fort Washington, PA
Fairview Plaza 2003 30% 69,579 1992 5 97%
New Cumberland, PA
Halifax Plaza 2003 30% 54,150 1994 9 100%
Halifax, PA
Newport Plaza 2003 30% 66,789 1996 9 100%
Newport, PA
Pine Grove Plaza Shopping Center 2003 100% 79,306 2001/2002 15 97%
Pemberton Township, NJ
[RESTUBBED}
AVERAGE MAJOR TENANTS [>=20,000 SF OF GLA]
BASE RENT PER ----------------------------------------------------------
PROPERTY LEASED SF NAME SF LEASE EXPIRATION
- -------------------------------------------------------------------------------------------------------------
STABILIZED PROPERTIES:
The Point Shopping Center $10.41 Giant Foods 55,000 07/31/2021
Harrisburg, PA Burlington Coat Factory 76,665 01/31/2011
Staples 24,000 08/31/2013
A.C. Moore 20,000 07/31/2008
Port Richmond Village 12.07 Thriftway 40,000 10/31/2008
Philadelphia, PA Pep Boys 20,615 01/31/2009
Thrift Fair Stores 15,200 02/28/2008
Academy Plaza 11.21 Acme Markets 50,918 09/31/2018
Philadelphia, PA Raising Horizons Charter School 20,092 08/31/2005
Washington Center Shoppes 7.29 Acme Markets 66,046 12/02/2020
Washington Township, NJ Powerhouse Gym 20,742 12/31/2012
Red Lion Shopping Center 12.22 Best Buy Stores 46,000 01/31/2014
Philadelphia, PA Sports Authority 43,825 08/15/2005
Staples 23,942 07/31/2015
Loyal Plaza 7.13 K-Mart 102,558 08/31/2006
Williamsport, PA Giant Foods 66,935 10/31/2019
LA Fitness Facility 18.09 LA Fitness 41,000 12/31/2018
Fort Washington, PA
Fairview Plaza 11.40 Giant Foods 59,237 02/28/2017
New Cumberland, PA
Halifax Plaza 10.27 Giant Foods 32,000 10/11/2019
Halifax, PA
Newport Plaza 10.08 Giant Foods 43,400 05/31/2021
Newport, PA
Pine Grove Plaza Shopping Center 10.47 Peebles 24,963 01/31/2022
Pemberton Township, NJ
11
CEDAR SHOPPING CENTERS, INC.
PROPERTY SUMMARY
AS OF SEPTEMBER 30, 2004
(CONTINUED)
GROSS
LEASABLE YEAR BUILT/ NUMBER
YEAR PERCENT AREA YEAR LAST OF PERCENT
PROPERTY ACQUIRED OWNED "GLA" RENOVATED TENANTS OCCUPIED
- ---------------------------------------------------------------------------------------------------------------
Swede Square Shopping Center 2003 100% 98,792 1980/2004 16 88%
East Norriton, PA
Valley Plaza Shopping Center 2003 100% 191,189 1975/1994 7 100%
Hagerstown, MD
Wal-Mart Shopping Center 2003 100% 155,842 1972/2000 8 95%
Southington, CT
South Philadelphia Shopping Plaza 2003 100% 283,486 1950/2003 25 87%
Philadelphia, PA
River View Plaza I, II and III 2003 100% 244,225 1991/1998 22 97%
Philadelphia, PA
Columbus Crossing Shopping Center 2003 100% 142,166 2001 9 100%
Philadelphia, PA
Sunset Crossings Shopping Center 2003 100% 74,142 2002 6 96%
Dickson City, PA
The Commons 2004 100% 175,121 2000 - 2003 21 98%
DuBois, PA
Townfair Center 2004 100% 203,531 1995 - 2002 11 97%
White Township, PA
Lake Raystown Plaza 2004 100% 84,292 1995 9 100%
Huntingdon, PA
----------- -----------------
3,199,283 326 95%
----------- -----------------
[RESTUBBED}
AVERAGE MAJOR TENANTS [>=20,000 SF OF GLA]
BASE RENT PER ----------------------------------------------------
PROPERTY LEASED SF NAME SF LEASE EXPIRATION
- ----------------------------------------------------------------------------------------------------------
Swede Square Shopping Center 13.11 LA Fitness 37,200 06/30/2016
East Norriton, PA
Valley Plaza Shopping Center 4.33 K-Mart 95,810 09/30/2009
Hagerstown, MD Ollie's 41,888 03/31/2011
Tractor Supply 32,095 05/31/2010
Wal-Mart Shopping Center 5.32 Wal-Mart 95,482 01/31/2020
Southington, CT Namco 20,000 01/31/2011
South Philadelphia Shopping Plaza 12.92 Shop Rite 54,388 09/30/2018
Philadelphia, PA Bally's Total Fitness 31,000 05/31/2017
Ross Stores 31,349 01/31/2013
Modell's 20,000 01/31/2018
Strauss Discount Auto 20,000 11/30/2013
River View Plaza I, II and III 18.26 United Artists 77,700 12/31/2018
Philadelphia, PA Pep Boys 22,000 09/30/2014
DA Lease Co. 25,000 01/31/2005
Columbus Crossing Shopping Center 15.22 Super Fresh Supermarket 61,506 09/30/2020
Philadelphia, PA Old Navy 25,000 09/30/2008
A.C. Moore 22,000 09/30/2011
Sunset Crossings Shopping Center 14.42 Giant Foods 54,332 06/30/2022
Dickson City, PA
The Commons 10.03 Elder-Beerman Stores 54,500 01/31/2017
DuBois, PA Shop 'n Save 52,654 10/07/2015
Townfair Center 7.68 Lowe's Home Centers 95,173 12/31/2015
White Township, PA Shop 'n Save 50,000 02/08/2012
Lake Raystown Plaza 8.54 Giant Foods 39,244 07/31/2015
Huntingdon, PA
--------
10.65
--------
12
CEDAR SHOPPING CENTERS, INC.
PROPERTY SUMMARY
AS OF SEPTEMBER 30, 2004
(CONTINUED)
GROSS
LEASABLE YEAR BUILT/ NUMBER
YEAR PERCENT AREA YEAR LAST OF PERCENT
PROPERTY ACQUIRED OWNED "GLA" RENOVATED TENANTS OCCUPIED
- -----------------------------------------------------------------------------------------------------------
DEVELOPMENT/REDEVELOPMENT PROPERTIES:
Camp Hill Mall 2002 100% 485,882 1958/2004 22 58%
Camp Hill, PA
Golden Triangle Shopping Center 2003 100% 191,581 1960/2004 15 63%
Lancaster, PA
Carbondale Plaza 2004 100% 129,915 1972 8 61%
Carbondale, PA
Huntingdon Plaza 2004 100% 151,277 1972 - 2003 13 50%
Huntingdon, PA
Hamburg Shopping Center 2004 100% 97,633 1988 - 1993 6 14%
Hamburg, PA
--------- -------------------
1,056,288 64 54%
--------- -------------------
TOTAL PORTFOLIO 4,255,571 390 85%
========= ==================
AVERAGE MAJOR TENANTS [>=20,000 SF OF GLA]
BASE RENT PER ---------------------------------------------
PROPERTY LEASED SF NAME SF LEASE EXPIRATION
- --------------------------------------------------------------------------------------------------------
DEVELOPMENT/REDEVELOPMENT PROPERTIES:
Camp Hill Mall 7.64 Boscov's 167,597 09/30/2010
Camp Hill, PA Giant Foods 42,070 01/31/2011
Barnes & Noble 24,908 01/31/2011
Golden Triangle Shopping Center 8.96 Marshalls 30,000 05/31/2010
Lancaster, PA Staples 24,060 05/31/2012
B&G Inc. 22,000 04/30/2009
Carbondale Plaza 5.24 Weis Markets 52,720 02/29/2016
Carbondale, PA
Huntingdon Plaza 6.47 Peebles 22,060 01/31/2018
Huntingdon, PA
Hamburg Shopping Center 10.55
Hamburg, PA
---------
7.50
---------
TOTAL PORTFOLIO $10.15
=========
13
CEDAR SHOPPING CENTERS, INC.
DEBT SUMMARY
AS OF SEPTEMBER 30, 2004
(UNAUDITED)
INT. RATE BALANCE BALANCE
PERCENT MATURITY SEP 30, SEP 30, DEC 31,
PROPERTY OWNED DATE 2004 2004 2003
- ----------------------------------------------------------------------------------------------------------
FIXED-RATE MORTGAGES:
- -----------------------------
The Point 100.0% Sep 2012 7.625% $19,344,110 $19,575,315
Academy Plaza 100.0% Mar 2013 7.275% 10,316,418 10,422,358
Port Richmond Village 100.0% Apr 2008 7.174% 11,176,696 11,291,886
Washington Center Shoppes 100.0% Nov 2007 7.530% 5,769,806 5,826,179
Red Lion 20.0% Feb 2010 8.860% 16,494,642 16,590,396
Loyal Plaza 25.0% Jun 2011 7.180% 13,570,474 13,676,519
Camp Hill 100.0% Nov 2004 4.740% 7,000,000 7,000,000
Fairview Plaza 30.0% Feb 2013 5.710% 5,960,971 6,017,539
Halifax Plaza 30.0% Jan 2010 6.830% 4,122,500 4,190,000
Newport Plaza 30.0% Feb 2010 6.830% 3,811,500 3,870,000
Newport Plaza 30.0% Feb 2010 6.830% 1,452,384 1,475,784
Pine Grove Plaza 100.0% Apr 2010 6.240% 5,775,000 5,887,500
Pine Grove Plaza 100.0% Mar 2006 8.500% 440,345 413,242
Golden Triangle 100.0% Apr 2008 7.390% 9,664,589 9,825,318
Townfair Center 100.0% Mar 2008 6.960% 9,922,292 -
----------------------------------------------------------------
TOTAL FIXED-RATE DEBT 5.4 years 7.220% 124,821,727 116,062,036
---------------------------------
[wtd-avg maturity][wtd-avg rate]
VARIABLE-RATE MORTGAGES:
- -----------------------------
LA Fitness Facility 50.0% Dec 2007 5.750% 4,978,234 4,558,803
Camp Hill 100.0% Nov 2004 3.790% 7,000,000 7,000,000
Swede Square 100.0% May 2005 N/A - 5,560,000
Valley Plaza 100.0% Jun 2005 4.340% 6,361,583 6,361,583
Wal-Mart 100.0% Aug 2005 4.340% 5,440,991 5,440,988
---------------------------------
23,780,808 28,921,374
Secured revolving credit
facility 100.0% Jan 2007 4.032% 28,950,000 17,000,000
----------------------------------------------------------------
TOTAL VARIABLE-RATE DEBT 1.8 years 4.230% 52,730,808 45,921,374
[wtd-avg maturity][wtd-avg rate]
----------------------------------------------------------------
TOTAL DEBT 4.3 years 6.330% $177,552,535 $161,983,410
- ----------------------------- =================================
[wtd-avg maturity][wtd-avg rate]
[RESTUBBED}
PRO RATA SHARE
--------------------------------
SEP 30, DEC 31,
PROPERTY 2004 2003
- ------------------------------- ----------------------------------
FIXED-RATE MORTGAGES:
- -----------------------------
The Point $19,344,110 $19,575,315
Academy Plaza 10,316,418 10,422,358
Port Richmond Village 11,176,696 11,291,886
Washington Center Shoppes 5,769,806 5,826,179
Red Lion 3,298,928 3,318,079
Loyal Plaza 3,392,619 3,419,130
Camp Hill 7,000,000 7,000,000
Fairview Plaza 1,788,291 1,805,262
Halifax Plaza 1,236,750 1,257,000
Newport Plaza 1,143,450 1,161,000
Newport Plaza 435,715 442,735
Pine Grove Plaza 5,775,000 5,887,500
Pine Grove Plaza 440,345 413,242
Golden Triangle 9,664,589 9,825,318
Townfair Center 9,922,292 -
---------------------------------
TOTAL FIXED-RATE DEBT 90,705,009 81,645,004
---------------------------------
VARIABLE-RATE MORTGAGES:
- -----------------------------
LA Fitness Facility 2,489,117 2,279,402
Camp Hill 7,000,000 7,000,000
Swede Square - 5,560,000
Valley Plaza 6,361,583 6,361,583
Wal-Mart 5,440,991 5,440,988
---------------------------------
21,291,691 26,641,973
Secured revolving credit
facility 28,950,000 17,000,000
---------------------------------
TOTAL VARIABLE-RATE DEBT 50,241,691 43,641,973
---------------------------------
TOTAL DEBT $140,946,700 $125,286,976
- ----------------------------- =================================
14
CEDAR SHOPPING CENTERS, INC.
DEBT SUMMARY
AS OF SEPTEMBER 30, 2004
(UNAUDITED)
(CONTINUED)
MORTGAGE DEBT
------------------------------- SECURED
SCHEDULED BALLOON REVOLVING
MATURITY SCHEDULE BY YEAR AMORTIZATION PAYMENTS CREDIT FACILITY TOTAL
- ----------------------------------------------------------------------------------------------------------
2004 $458,648 $14,000,000 $14,458,648
2005 1,882,804 11,802,574 13,685,378
2006 2,010,777 431,119 2,441,896
2007 2,089,102 10,487,717 $28,950,000 41,526,819
2008 1,599,797 28,644,387 30,244,184
2009 1,542,018 - 1,542,018
2010 1,117,717 28,832,891 29,950,608
2011 992,470 12,285,642 13,278,112
2012 759,348 15,900,641 16,659,989
2013 53,733 13,711,150 13,764,883
-------------------------------------------------------------------
$12,506,414 $136,096,121 $28,950,000 $177,552,535
===================================================================
Mortgage loans maturing during the period ending December 31, 2004 include a $14
million mortgage loan secured by the Camp Hill Mall. The Company expects to
arrange new financing which would provide for (1) the repayment of the existing
mortgage, and (2) the completion of the redevelopment program at the property.
If such financing is not in place by the due date of the existing mortgage, the
Company expects that the $14 million loan will be temporarily refinanced from
its secured revolving credit facility.
15
CEDAR SHOPPING CENTERS, INC
CONSOLIDATED JOINT VENTURES INFORMATION
(UNAUDITED)
AS OF SEPTEMBER 30, 2004
---------------------------------------------------------------------------------------------
MORTGAGE OTHER ASSETS EQUITY (A)
PARTNERS' REAL ESTATE, LOANS LIABILITIES, --------------------------------------------
PROPERTY PERCENT NET PAYABLE NET PARTNERS CEDAR (B) TOTAL
- --------------------------------------------------------------------------------------------------------------------------------
Loyal Plaza 75% $ 19,123,418 $ 13,570,474 $ 741,493 $ 4,504,164 $ 1,790,273 $ 6,294,437
Red Lion 80% 19,193,302 16,494,642 1,646,439 2,947,780 1,397,319 4,345,099
Fairview Plaza (c) 70% 8,775,678 5,960,971 (327,026) 1,605,677 882,004 2,487,681
Halifax Plaza (c) 70% 5,518,814 4,122,500 (123,984) 1,189,379 82,951 1,272,330
Newport Plaza (c) 70% 6,413,358 5,263,884 46,043 1,082,249 113,268 1,195,517
LA Fitness Facility 50% 5,955,291 4,978,234 201,414 871,584 306,887 1,178,471
-------------------------------------------------------------------------------------------
$ 64,979,861 $ 50,390,705 $ 2,184,379 $ 12,200,833 $ 4,572,702 $ 16,773,535
===========================================================================================
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004
-----------------------------------------------------------------------------
SHARE OF PROPERTY NET INCOME
----------------------------------
PROPERTY-LEVEL OPERATIONS PARTNERS
PARTNERS' ------------------------------------- ----------------------------------
PROPERTY PERCENT REVENUES EXPENSES NET INCOME REGULAR PREFERENCE CEDAR (B)
- ---------------------------- ------------------------------------- ----------------------------------
Loyal Plaza 75% $ 2,031,332 $ 1,617,582 $ 413,750 $ 310,313 $ 103,437 $ -
Red Lion 80% 2,360,061 2,353,029 7,032 5,626 - 1,406
Fairview Plaza (c) 70% 706,437 512,778 193,659--|
|
Halifax Plaza (c) 70% 535,935 444,741 91,194 |-> 294,699 25,260 70,501
|
Newport Plaza (c) 70% 669,400 533,254 136,146--|
LA Fitness Facility 50% 557,860 320,585 237,275 118,637 - 118,638
------------------------------------- ----------------------------------
$ 6,861,025 $ 5,781,969 $ 1,079,056 $ 729,275 $ 128,697 $ 190,545
===================================== ==================================
[RESTUBBED]
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004
--------------------------------------------
SHARE OF FFO
PARTNERS' ---------------------------------
PROPERTY PERCENT PARTNERS CEDAR (B) TOTAL
- ---------------------------- ---------------------------------
Loyal Plaza 75% $ 536,812 $ 180,777 $ 717,589
Red Lion 80% 264,535 66,134 330,669
Fairview Plaza (c) 70%--|
|
Halifax Plaza (c) 70% |-> 532,132 213,128 745,260
|
Newport Plaza (c) 70%--|
LA Fitness Facility 50% 156,847 156,847 313,694
---------------------------------
$1,490,326 $ 616,886 $2,107,212
=================================
(a) The Partners/Cedar shares of equity, as presented, differ from amounts
calculated using the stated ownership percentages because of (1)
non-proportionate initial investments (per the respective joint venture
agreements), and (2) the cumulative effect of preference returns to joint
venture partners.
(b) Includes limited partners' share.
(c) As each of these three properties is under an umbrella partnership, any
shortfall in required preference payments by any one of the properties will
be offset by excess cash flow from any of the other properties.
16
CEDAR SHOPPING CENTERS, INC.
TENANT CONCENTRATION SCHEDULE
AS OF SEPTEMBER 30, 2004
(UNAUDITED)
% OF TOTAL AVERAGE
NUMBER % OF TOTAL ANNUALIZED ANNUALIZED ANNUALIZED
TENANT OF STORES SF SF BASE RENT BASE RENT BASE RENT
- ------------------------------------------------------------------------------------------------------------------------------
Top ten tenants:
Giant Foods 8 392,218 9.2% $4,040,130 11.0% $10.30
United Artists Theatre Group 1 77,700 1.8% 1,328,950 3.6% 17.10
Staples 4 90,002 2.1% 1,254,704 3.4% 13.94
LA Fitness 2 78,200 1.8% 1,115,928 3.0% 14.27
Shop 'n Save 2 102,654 2.4% 854,151 2.3% 8.32
Boscov's 1 167,597 3.9% 742,071 2.0% 4.43
Super Fresh 1 61,506 1.4% 650,000 1.8% 10.57
Best Buy 1 46,000 1.1% 619,083 1.7% 13.46
Shop Rite 1 54,388 1.3% 595,005 1.6% 10.94
Lowe's Home Center 1 95,173 2.2% 585,314 1.6% 6.15
----------------------------------------------------------------------------------------
SUB-TOTAL TOP TEN TENANTS 22 1,165,438 27.4% 11,785,337 32.1% 10.11
Remaining tenants 368 2,451,205 57.6% 24,929,819 67.9% 10.17
----------------------------------------------------------------------------------------
SUB-TOTAL ALL TENANTS 390 3,616,643 85.0% 36,715,156 100.0% 10.15
Vacant N/A 638,928 15.0% N/A N/A N/A
----------------------------------------------------------------------------------------
TOTAL (INCLUDING VACANT) 390 4,255,571 100.0% $36,715,156 100.0% $8.63
========================================================================================
17
CEDAR SHOPPING CENTERS, INC.
LEASE EXPIRATION SCHEDULE
AS OF SEPTEMBER 30, 2004
(UNAUDITED)
% OF TOTAL AVERAGE
YEAR OF NUMBER % OF TOTAL ANNUALIZED ANNUALIZED ANNUALIZED BASE
EXPIRATION OF TENANTS SF SF BASE RENT BASE RENT RENT PER SF
- -------------------------------------------------------------------------------------------------------------------------------
M-T-M 9 23,611 0.6% $ 311,528 0.8% $13.19
2004 9 18,512 0.4% 282,368 0.8% 15.25
2005 43 207,700 4.9% 2,766,047 7.5% 13.32
2006 57 293,597 6.9% 3,164,258 8.6% 10.78
2007 60 235,392 5.5% 3,058,655 8.3% 12.99
2008 50 281,236 6.6% 3,723,425 10.1% 13.24
2009 52 296,747 7.0% 2,647,772 7.2% 8.92
2010 13 281,763 6.6% 1,650,930 4.5% 5.86
2011 16 288,761 6.8% 2,394,495 6.5% 8.29
2012 21 203,698 4.8% 2,101,248 5.7% 10.32
2013 13 112,334 2.6% 1,272,427 3.5% 11.33
Thereafter 47 1,373,292 32.3% 13,342,004 36.3% 9.72
-----------------------------------------------------------------------------------------------
390 3,616,643 85.0% 36,715,156 100.0% 10.15
Vacant N/A 638,928 15.0% N/A N/A N/A
-----------------------------------------------------------------------------------------------
TOTAL (INCLUDING VACANT) 390 4,255,571 100.0% $36,715,156 100.0% $8.63
===============================================================================================
18