Exhibit 99.1
FOR IMMEDIATE RELEASE 7/28/10
Contact Information:
Cedar Shopping Centers, Inc.
Leo S. Ullman, Chairman, CEO and President
(516) 944-4525
lsu@cedarshoppingcenters.com
CEDAR SHOPPING CENTERS REPORTS SECOND QUARTER 2010 RESULTS
Port Washington, New York July 28, 2010 Cedar Shopping Centers, Inc. (NYSE: CDR) today
reported its financial results for the second quarter ended June 30, 2010.
Highlights
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258,000 square feet of leases were renewed during the quarter at an average increase of
7.3%. |
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Revenues (including all managed properties but excluding non-cash items) at $42.2 million
grew by 6.1% over the comparable quarter of 2009. |
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Net operating income (NOI) (including all managed properties but excluding non-cash
items) was $27.4 million compared to $27.1 million for the comparable quarter of 2009, an
increase of 1.2%. |
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Operating funds from operations (FFO), excluding non-cash items, was $0.14 per share/OP
Unit. |
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Occupancy for all properties, including redevelopment properties, remained 90%. |
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Debt-to-total-market capitalization was reduced to 60.7% as of June 30, 2010 from 78.3% at
June 30, 2009. |
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The Company reiterates full year 2010 FFO guidance of $0.60 to $0.70 per share/OP Unit. |
Leo Ullman, Cedars CEO, stated The Companys second quarter, consistent with prior quarters,
again featured strong renewals and new leasing results compared to comparable periods last year.
The Company continues to focus on carrying out our business plan. This includes: maintaining high
occupancy, focusing on improving leasing results, deleveraging our balance sheet, proceeding on
completing entitlements for development properties, and accessing opportunistic acquisitions. With
our improved financial flexibility, the Company is well-positioned to continue executing on its
business strategy, including the pursuit of accretive acquisitions, in the second half of this year
and beyond.
This release refers to certain non-GAAP amounts. Reconciliations of non-GAAP to GAAP
amounts are presented in the Companys Supplemental Financial Information for the period ended
June 30, 2010 (page 9) filed contemporaneously with this release as an Exhibit to Form 8-K and
are also available on the Companys website at www.cedarshoppingcenters.com.
1
Operating Activities
Leasing
In the second quarter of 2010, the Company signed 51 renewal leases, substantially all at
stabilized properties, totaling approximately 258,000 square feet of GLA with an average increase
in base rents of 7.3%. The Company signed 19 new leases totaling approximately 58,000 square feet
at an average base rent of $18.19 per square foot, while the Company had 19 terminated leases,
totaling approximately 49,000 square feet, at an average base rent of $15.32 per square foot.
The Company has also substantially completed all renewal leases for 2010 and nearly 50% of renewals
for 2011.
Development
The Company continued to make progress on entitlements for its ground-up development project in
Kutztown, Pennsylvania and for its redevelopment property in Trexlertown, Pennsylvania. Lease-up
at the Companys Crossroads II and Upland Square ground-up joint venture development properties
continues; occupancy levels for each of the two properties as of June 30, 2010 were approximately
79.0%.
Occupancy
Occupancy on an overall basis, including development properties, remained at approximately 90%. Of
that amount, the Companys core properties not undergoing major development or re-tenanting
activities was at approximately 93% occupancy. The overall results reflect the lease termination
of a single big box club store tenant at The Brickyard (Berlin, Connecticut) property and a lease
termination at the Oakhurst property in connection with the completed Blue Mountain Commons
ground-up development.
Same-Property Results
The Companys same-property operating results include 101 properties for the second quarters of
both 2010 and 2009. Same-property net operating income, excluding straight-line rents and
amortization of intangible lease liabilities, was $21.8 million for the second quarter of 2010 as
compared to $22.9 million for the comparable period of 2009. These results reflect, as previously
reported, vacancies created in connection with redevelopment and re-tenanting of the Companys
Oakhurst Plaza (where Giant Stores vacated its store in favor of a large new prototype at the
Companys new ground-up development at Blue Mountain Commons a quarter mile away) and The Brickyard
property (where the Company expects to replace a departed Sams Club with a new large tenant).
Financial Results
For the second quarter of 2010, excluding impairment charges and non-cash revenues from straight
line rents and amortization of intangible lease liabilities and certain other non-cash and/or
non-recurring items, the Company had stable year-over-year operating results while continuing to
greatly improve its balance sheet strength and financial flexibility .
Revenues
Revenues from all owned and managed properties, excluding non-cash items, for the quarter ended
June 30, 2010 increased 6.1% to $42.2 million as compared to $39.8 million for the comparable
quarter of 2009. Revenues from all owned and managed properties, excluding non-cash items, for the
2
six months ended June 30, 2010 increased 6.7% to $86.6 million as compared to $81.2 million for the
comparable period of 2009.
The Companys revenues, as reported, were $40.7 million and $43.6 million, respectively, for the
three months ended June 30, 2010 and 2009, and $85.2 million and $89.0 million, respectively, for
the six months ended June 30, 2010 and 2009, reflecting the inclusion of non-cash revenues
mentioned above and the exclusion of revenues resulting from the contribution of seven properties
to the Cedar/RioCan joint venture.
Net Operating Income (NOI)
NOI attributable to all owned and managed properties, excluding non-cash revenues and
mark-to-market adjustments relating to stock-based compensation, increased 1.2% to $27.4 million
for the second quarter of 2010 as compared to $27.1 million for the comparable quarter of 2009.
The second quarter of 2010 included income from ground-up development projects delivered in 2009
and acquisitions made in the first quarter of 2009, partially offset by reduced income at
properties undergoing re-development/re-tenanting, primarily at the Shore Mall, The Brickyard and
Oakhurst Plaza. The Companys NOI attributable to all properties, excluding non-cash revenues and
mark-to-market adjustments relating to stock-based compensation, increased 2.7% to $55.3 million
for the six months ended June 30, 2010 as compared to $53.8 million for the comparable period of
2009.
NOI, as reported, was $27.7 million for the second quarter of 2010 as compared to $30.7 million for
the comparable quarter of 2009, reflecting the inclusion of non-cash revenues and mark-to-market
adjustments relating to stock-based compensation mentioned above and the exclusion of NOI resulting
from the contribution of seven properties to the Cedar/RioCan joint venture, the Companys share of
which is included in equity in income of unconsolidated joint ventures. The Companys NOI, as
reported, was $56.2 million for the six months ended June 30, 2010 as compared to $62.0 million for
the comparable period of 2009.
Net Income Attributable to Common Shareholders
As a result primarily of reduced income attributable to the contribution of seven properties to the
Cedar/RioCan joint venture, the Company had a net loss, before impairments and mark-to-market
adjustments relating to stock-based compensation, of ($1.6) million for the second quarter of 2010
as compared to net income of $2.7 million for the comparable quarter of 2009. The 2010 quarters
results also reflect (a) lower non-cash revenues, (b) higher interest expense, including
amortization of financing costs, resulting from the closing of the stabilized property line of
credit, refinancing certain variable-rate loans and completing development projects, partially
offset by lower interest expense from the repayment of debt with proceeds from the sales of common
stock, (c) higher NOI from the completion of ground-up development projects, and (d) on a per-share
basis, issuances of common stock as described below. The Company had a net loss, before impairments
and mark-to-market adjustments relating to stock-based compensation, of ($1.5) million for the six
months ended June 30, 2010 as compared to net income of $5.8 million for the comparable period of
2009.
Net (loss) income, as reported, was ($4.3) million for the second quarter of 2010 as compared to
($0.4) million for the second quarter of 2009 additionally reflecting higher impairment charges
principally in connection with the property held for sale as well as a terminated development
project, partially offset by lower non-cash stock-based compensation expense. Net (loss), as
reported, was ($7.7) million for the six months ended June 30, 2010 as compared to net income of
$3.6 million for the comparable period of 2009.
FFO
3
As a result primarily of reduced income attributable to the contribution of seven properties to the
Cedar/RioCan joint venture and issuances of additional shares of common stock, operating FFO for
the quarter, before the above-mentioned impairments and non-recurring items, was $9.2 million
($0.14 per share/OP Unit), as compared to $13.9 million ($0.30 per share/OP Unit) for the
comparable quarter of 2009. After the impairments and non-recurring items, FFO was $6.5 million
($0.10 per share/OP Unit) as compared to $10.8 million ($0.23 per share/OP Unit) for the comparable
quarter of 2009.
Operating FFO for the six months ended June 30, 2010, before the above-mentioned impairments and
non-recurring items, was $19.5 million ($0.31 per share/OP Unit), as compared to $28.5 million
($0.61 per share/OP Unit) for the comparable period of 2009. After the impairments and
non-recurring items, FFO was $13.0 million ($0.21 per share/OP Unit) as compared to $26.2 million
($0.56 per share/OP Unit) for the comparable period of 2009.
A reconciliation of net income attributable to common shareholders to FFO is contained in the table
accompanying this release.
Balance Sheet
The Company has continued to improve its balance sheet strength during 2010. This has been
accomplished through the sale of 9.6 million common shares that raised approximately $61 million,
the receipt of $10 million in April 2010 as a result of the exercise by RioCan of a warrant to
purchase approximately 1.4 million common shares of Cedar stock at $7.00 per share, the ongoing
sales of shares under the SEPA program that raised approximately $5.0 million, the contribution
of five properties to the Cedar/RioCan joint venture, which generated, in 2010, approximately $31
million in net cash proceeds and further reduced the Companys debt by $94 million. Additionally,
the sale of four properties in the Companys drugstore/convenience center group generated $2
million in net cash proceeds and further reduced the Companys debt by approximately $8 million.
The Company continues to look to opportunistically raise additional capital to further strengthen
its balance sheet as market conditions and other business activities warrant, consistent with the
Companys long-term objectives.
The principal cumulative effect of these transactions has been to reduce the Companys
debt-to-total-market capitalization to 60.7% as of June 30, 2010, from 67.1% at the end of 2009 and
from 78.3% at June 30, 2009.
Total assets were $1.64 billion at June 30, 2010. The Company had total debt outstanding of $856.1
million at June 30, 2010 as compared to $946.0 million at December 31, 2009 excluding mortgage debt
related to properties to be transferred to the Cedar/RioCan joint venture or held for sale. The
average interest rate on the Companys total debt was 5.2% per annum.
At June 30, 2010, the Companys fixed-rate debt, excluding mortgage debt related to properties held
for sale, was approximately 71% of total indebtedness, with a weighted average remaining term of
5.4 years and a weighted average interest rate of 5.8% per annum.
As of June 30, 2010, the Company had 65.1 million shares of common stock outstanding compared to
45.1 million shares at June 30, 2009.
4
Credit Facilities
The outstanding balance at June 30, 2010 under the Companys $285 million credit facility for
stabilized properties (due 2012 with a one-year extension option) was $81.8 million with an
availability of approximately $94.1 million. As of this date, the amount outstanding under the
facility is approximately $59 million with an availability of approximately $108 million. This
compares to the amount outstanding at June 30, 2009 of $249 million.
The outstanding balance as of June 30, 2010 under the Companys $150 million credit facility for
development properties was approximately $86 million.
The Cedar/RioCan Joint Venture
In the second quarter, the Company completed the transfer of an 80% interest in all seven
properties identified under the joint venture arrangement with RioCan. In the aggregate, the
transfers of properties generated net cash proceeds of approximately $64 million and reduced debt
by $94 million.
Financial Guidance
The Company reported FFO of $0.14 per share/OP Unit excluding impairment charges and mark-to-market
adjustments of stock-based compensation. The Company reiterates full year 2010 FFO guidance of
$0.60 to $0.70 per share/OP Unit which excludes, as previously disclosed, the following:
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Acquisitions of properties, whether by the company itself or in joint ventures,
including acquisition fees and/or other fees attributable thereto; |
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Sales or other dispositions of properties, including any related gains or impairment
charges; |
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Mark-to-market adjustments relating to stock-based compensation; and |
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Other non-recurring transactions |
Supplemental Financial Information Package
The Company has issued Supplemental Financial Information for the period ended June 30, 2010 and
has filed such information today as an exhibit to Form 8-K, which will also be available on the
Companys 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 period ended June 30, 2010, when available, for further details. The Form 10-Q
can also be linked through the Investor Relations section of the Companys website.
5
Investor Conference Call
The Company will host a conference call on Thursday, July 29, 2010, at 9:00 AM EDT to
discuss the second quarter results. The conference call can be accessed by dialing (800) 310-6649
or (719) 457-1517 for international participants. A live webcast of the conference call will be
available online on the Companys website at www.cedarshoppingcenters.com. A replay of the
call will be available from noon Eastern time on July 29, 2010, until midnight EDT on
August 12, 2010. The replay dial-in numbers are (888) 203-1112 or (719) 457-0820 for international
callers. Please use passcode 7597341 for the telephonic replay. A replay of the Companys webcast
will be available on the Companys 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 the ownership, operation, development and redevelopment of bread and
butter® supermarket-anchored shopping centers in coastal mid-Atlantic and New
England states. The Company presently owns (both wholly-owned and in joint venture) and manages
approximately 13 million square feet of GLA at 118 shopping center properties, of which more than
75% are anchored by supermarkets and/or drugstores with average remaining lease terms of
approximately 11 years. The Companys properties have an occupancy rate of approximately 90%.
For additional financial and descriptive information on the Company, its operations and its
portfolio, please refer to the Companys website at www.cedarshoppingcenters.com.
Forward-Looking Statements
Statements made or incorporated by reference in this press release 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 Companys 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 Companys 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 Companys market areas in particular; the financial viability of the Companys tenants
(including an inability to pay rent, filing for bankruptcy protection, closing stores and/or
vacating the premises); the continuing availability of acquisition, 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; the availability of
suitable joint venture partners and potential purchasers of the Companys properties if offered for
sale; the ability of the Companys joint venture partners to fund their respective shares of
property acquisitions, tenant improvements and capital expenditures; changes in interest rates; the
fact that returns from acquisition, development and redevelopment activities may not be at expected
levels or at expected times; risks inherent 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 relating
thereto, and market factors involved in the pricing of material and labor; the need to renew leases
or re-let space upon the expiration or termination of current leases and incur applicable required
replacement costs;
6
and the financial flexibility of the Company and its joint venture partners to repay or refinance
debt obligations when due and to fund tenant improvements and capital expenditures.
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 REITs 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 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 Companys secured revolving credit facilities.
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 Companys calculations of FFO for the three and six months ended
June 30, 2010 and 2009:
7
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Three months ended June 30, |
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Six months ended June 30, |
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2010 |
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2009 |
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2010 |
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2009 |
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Net (loss) income attributable to common shareholders |
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$ |
(4,251,000 |
) |
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$ |
(367,000 |
) |
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$ |
(7,741,000 |
) |
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$ |
3,582,000 |
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Add (deduct): |
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Real estate depreciation and amortization |
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12,327,000 |
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12,646,000 |
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23,655,000 |
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25,092,000 |
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Noncontrolling interests: |
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Limited partners interest |
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(178,000 |
) |
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(15,000 |
) |
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(292,000 |
) |
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160,000 |
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Minority interests in consolidated joint ventures |
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(87,000 |
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309,000 |
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388,000 |
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(45,000 |
) |
Minority interests share of FFO applicable to
consolidated joint ventures |
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(1,686,000 |
) |
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(1,638,000 |
) |
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(3,377,000 |
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(2,470,000 |
) |
Equity in income of unconsolidated joint ventures |
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(479,000 |
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(283,000 |
) |
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(835,000 |
) |
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(542,000 |
) |
FFO from unconsolidated joint ventures |
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834,000 |
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377,000 |
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1,420,000 |
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736,000 |
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Gain on sale of discontinued operations |
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5,000 |
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(277,000 |
) |
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(170,000 |
) |
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(277,000 |
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Funds From Operations |
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$ |
6,485,000 |
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$ |
10,752,000 |
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$ |
13,048,000 |
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$ |
26,236,000 |
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FFO per common share (assuming conversion of OP Units) |
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Basic and diluted |
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$ |
0.10 |
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$ |
0.23 |
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$ |
0.21 |
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$ |
0.56 |
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Weighted average number of common shares (basic): |
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Shares used in determination of basic earnings per share |
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64,434,000 |
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45,062,000 |
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61,581,000 |
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44,971,000 |
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Additional shares assuming conversion of OP Units |
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1,945,000 |
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2,018,000 |
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1,965,000 |
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2,018,000 |
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Shares used in determination of basic FFO per share |
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66,379,000 |
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47,080,000 |
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63,546,000 |
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46,989,000 |
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Weighted average number of common shares (dilutive): |
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Shares used in determination of diluted earnings per share |
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64,486,000 |
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45,062,000 |
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61,620,000 |
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44,971,000 |
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Additional shares assuming conversion of OP Units |
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1,945,000 |
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2,018,000 |
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1,965,000 |
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2,018,000 |
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Shares used in determination of diluted FFO per share |
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66,431,000 |
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47,080,000 |
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63,585,000 |
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46,989,000 |
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8
CEDAR SHOPPING CENTERS, INC.
Consolidated Balance Sheets
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June 30, |
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December 31, |
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2010 |
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2009 |
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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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$ |
349,710,000 |
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$ |
356,366,000 |
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Buildings and improvements |
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1,336,366,000 |
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1,316,315,000 |
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1,686,076,000 |
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1,672,681,000 |
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Less accumulated depreciation |
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(184,939,000 |
) |
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(163,879,000 |
) |
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Real estate, net |
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1,501,137,000 |
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1,508,802,000 |
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Real estate to be transferred to a joint venture |
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139,743,000 |
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Real estate held for sale discontinued operations |
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8,325,000 |
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21,380,000 |
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Investment in unconsolidated joint ventures |
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27,066,000 |
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14,113,000 |
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Cash and cash equivalents |
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13,794,000 |
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17,164,000 |
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Restricted cash |
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12,828,000 |
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14,075,000 |
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Receivables: |
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Rents and other tenant receivables, net |
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8,814,000 |
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7,423,000 |
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Straight-line rents |
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15,807,000 |
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14,545,000 |
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Joint venture settlements |
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6,146,000 |
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2,322,000 |
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Other assets |
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7,271,000 |
|
|
|
9,315,000 |
|
Deferred charges, net |
|
|
34,564,000 |
|
|
|
36,236,000 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,635,752,000 |
|
|
$ |
1,785,118,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
Mortgage loans payable |
|
$ |
688,265,000 |
|
|
$ |
688,289,000 |
|
Mortgage loans payable real estate to be transferred to a joint venture |
|
|
|
|
|
|
94,018,000 |
|
Mortgage loans payable real estate held for sale discontinued operations |
|
|
4,647,000 |
|
|
|
12,455,000 |
|
Secured revolving credit facilities |
|
|
167,841,000 |
|
|
|
257,685,000 |
|
Accounts payable and accrued liabilities |
|
|
29,429,000 |
|
|
|
46,902,000 |
|
Unamortized intangible lease liabilities |
|
|
51,605,000 |
|
|
|
53,733,000 |
|
Liabilities real estate held for sale and, at December 31, 2009, real
estate to be transferred to a joint venture |
|
|
1,275,000 |
|
|
|
5,634,000 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
943,062,000 |
|
|
|
1,158,716,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partners interest in Operating Partnership |
|
|
10,888,000 |
|
|
|
12,638,000 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Cedar Shopping Centers, Inc. 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
65,104,000 and 52,139,000 shares, respectively, issued and
outstanding) |
|
|
3,906,000 |
|
|
|
3,128,000 |
|
Treasury stock (1,127,000 and 981,000 shares, respectively, at cost) |
|
|
(10,521,000 |
) |
|
|
(9,688,000 |
) |
Additional paid-in capital |
|
|
705,314,000 |
|
|
|
621,299,000 |
|
Cumulative distributions in excess of net income |
|
|
(175,628,000 |
) |
|
|
(162,041,000 |
) |
Accumulated other comprehensive loss |
|
|
(4,082,000 |
) |
|
|
(2,992,000 |
) |
|
|
|
|
|
|
|
Total Cedar Shopping Centers, Inc. shareholders equity |
|
|
607,739,000 |
|
|
|
538,456,000 |
|
|
|
|
|
|
|
|
Noncontrolling interests: |
|
|
|
|
|
|
|
|
Minority interests in consolidated joint ventures |
|
|
66,957,000 |
|
|
|
67,229,000 |
|
Limited partners interest in Operating Partnership |
|
|
7,106,000 |
|
|
|
8,079,000 |
|
|
|
|
|
|
|
|
Total noncontrolling interests |
|
|
74,063,000 |
|
|
|
75,308,000 |
|
|
|
|
|
|
|
|
Total equity |
|
|
681,802,000 |
|
|
|
613,764,000 |
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
1,635,752,000 |
|
|
$ |
1,785,118,000 |
|
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
2010 |
|
|
2009 |
|
|
2010 |
|
|
2009 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rents |
|
$ |
33,089,000 |
|
|
$ |
35,538,000 |
|
|
$ |
67,497,000 |
|
|
$ |
70,579,000 |
|
Expense recoveries |
|
|
7,312,000 |
|
|
|
7,972,000 |
|
|
|
17,322,000 |
|
|
|
18,133,000 |
|
Other |
|
|
302,000 |
|
|
|
40,000 |
|
|
|
428,000 |
|
|
|
298,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
40,703,000 |
|
|
|
43,550,000 |
|
|
|
85,247,000 |
|
|
|
89,010,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating, maintenance and management |
|
|
7,671,000 |
|
|
|
7,583,000 |
|
|
|
18,245,000 |
|
|
|
16,644,000 |
|
Real estate and other property-related taxes |
|
|
5,353,000 |
|
|
|
5,233,000 |
|
|
|
10,756,000 |
|
|
|
10,362,000 |
|
General and administrative |
|
|
2,106,000 |
|
|
|
2,853,000 |
|
|
|
4,317,000 |
|
|
|
4,292,000 |
|
Impairments |
|
|
562,000 |
|
|
|
|
|
|
|
2,117,000 |
|
|
|
|
|
Terminated projects and acquisition transaction costs, net |
|
|
2,000 |
|
|
|
2,423,000 |
|
|
|
1,322,000 |
|
|
|
3,948,000 |
|
Depreciation and amortization |
|
|
12,326,000 |
|
|
|
12,356,000 |
|
|
|
23,631,000 |
|
|
|
24,447,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
28,020,000 |
|
|
|
30,448,000 |
|
|
|
60,388,000 |
|
|
|
59,693,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
12,683,000 |
|
|
|
13,102,000 |
|
|
|
24,859,000 |
|
|
|
29,317,000 |
|
Non-operating income and expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, including amortization of
deferred financing costs |
|
|
(12,784,000 |
) |
|
|
(11,795,000 |
) |
|
|
(26,557,000 |
) |
|
|
(23,066,000 |
) |
Interest income |
|
|
5,000 |
|
|
|
4,000 |
|
|
|
19,000 |
|
|
|
18,000 |
|
Equity in income of unconsolidated joint ventures |
|
|
479,000 |
|
|
|
283,000 |
|
|
|
835,000 |
|
|
|
542,000 |
|
Gain on sale of land parcel |
|
|
|
|
|
|
(3,000 |
) |
|
|
|
|
|
|
236,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-operating income and expense |
|
|
(12,300,000 |
) |
|
|
(11,511,000 |
) |
|
|
(25,703,000 |
) |
|
|
(22,270,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before discontinued operations |
|
|
383,000 |
|
|
|
1,591,000 |
|
|
|
(844,000 |
) |
|
|
7,047,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from discontinued operations |
|
|
(2,925,000 |
) |
|
|
43,000 |
|
|
|
(3,033,000 |
) |
|
|
311,000 |
|
Gain on sale of discontinued operations |
|
|
(5,000 |
) |
|
|
277,000 |
|
|
|
170,000 |
|
|
|
277,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total discontinued operations |
|
|
(2,930,000 |
) |
|
|
320,000 |
|
|
|
(2,863,000 |
) |
|
|
588,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
(2,547,000 |
) |
|
|
1,911,000 |
|
|
|
(3,707,000 |
) |
|
|
7,635,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less, net loss (income) attributable to noncontrolling interests: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interests in consolidated joint ventures |
|
|
87,000 |
|
|
|
(309,000 |
) |
|
|
(388,000 |
) |
|
|
45,000 |
|
Limited partners interest in Operating Partnership |
|
|
178,000 |
|
|
|
15,000 |
|
|
|
292,000 |
|
|
|
(160,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net loss (income) attributable to noncontrolling interests |
|
|
265,000 |
|
|
|
(294,000 |
) |
|
|
(96,000 |
) |
|
|
(115,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to Cedar Shopping Centers, Inc. |
|
|
(2,282,000 |
) |
|
|
1,617,000 |
|
|
|
(3,803,000 |
) |
|
|
7,520,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred distribution requirements |
|
|
(1,969,000 |
) |
|
|
(1,984,000 |
) |
|
|
(3,938,000 |
) |
|
|
(3,938,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to common shareholders |
|
$ |
(4,251,000 |
) |
|
$ |
(367,000 |
) |
|
$ |
(7,741,000 |
) |
|
$ |
3,582,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share attributable to common sharehoders (basic
and diluted): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.02 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.08 |
) |
|
$ |
0.07 |
|
Discontinued operations |
|
|
(0.05 |
) |
|
|
|
|
|
|
(0.05 |
) |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.07 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.13 |
) |
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Cedar Shopping Centers, Inc.
common shareholders, net of limited partners interest: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations |
|
$ |
(1,406,000 |
) |
|
$ |
(646,000 |
) |
|
$ |
(4,967,000 |
) |
|
$ |
3,019,000 |
|
(Loss) income from discontinued operations |
|
|
(2,840,000 |
) |
|
|
14,000 |
|
|
|
(2,939,000 |
) |
|
|
298,000 |
|
Gain on sale of discontinued operations |
|
|
(5,000 |
) |
|
|
265,000 |
|
|
|
165,000 |
|
|
|
265,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(4,251,000 |
) |
|
$ |
(367,000 |
) |
|
$ |
(7,741,000 |
) |
|
$ |
3,582,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to common shareholders |
|
$ |
5,846,000 |
|
|
$ |
|
|
|
$ |
5,846,000 |
|
|
$ |
5,046,000 |
|
Per common share |
|
$ |
0.0900 |
|
|
$ |
|
|
|
$ |
0.0900 |
|
|
$ |
0.1125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding |
|
|
64,434,000 |
|
|
|
45,062,000 |
|
|
|
61,581,000 |
|
|
|
44,971,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Cash Flows
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
2010 |
|
|
2009 |
|
Cash flow from operating activities: |
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(3,707,000 |
) |
|
$ |
7,635,000 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Non-cash provisions: |
|
|
|
|
|
|
|
|
Equity in income of unconsolidated joint ventures |
|
|
(835,000 |
) |
|
|
(542,000 |
) |
Distributions from unconsolidated joint ventures |
|
|
548,000 |
|
|
|
516,000 |
|
Impairments |
|
|
2,117,000 |
|
|
|
|
|
Terminated projects |
|
|
1,273,000 |
|
|
|
2,675,000 |
|
Impairment discontinued operations |
|
|
3,238,000 |
|
|
|
170,000 |
|
Gain on sales of real estate |
|
|
(170,000 |
) |
|
|
(513,000 |
) |
Straight-line rents |
|
|
(1,424,000 |
) |
|
|
(1,176,000 |
) |
Provision for doubtful accounts |
|
|
1,518,000 |
|
|
|
1,538,000 |
|
Depreciation and amortization |
|
|
23,753,000 |
|
|
|
25,159,000 |
|
Amortization of intangible lease liabilities |
|
|
(5,427,000 |
) |
|
|
(6,670,000 |
) |
Amortization/market price adjustments relating to stock-based compensation |
|
|
1,236,000 |
|
|
|
346,000 |
|
Amortization of deferred financing costs |
|
|
2,493,000 |
|
|
|
1,464,000 |
|
Increases/decreases in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Rents and other receivables, net |
|
|
(2,875,000 |
) |
|
|
(2,896,000 |
) |
Joint venture settlements |
|
|
(2,426,000 |
) |
|
|
|
|
Prepaid expenses and other |
|
|
1,340,000 |
|
|
|
1,509,000 |
|
Accounts payable and accrued expenses |
|
|
(3,894,000 |
) |
|
|
(3,946,000 |
) |
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
16,758,000 |
|
|
|
25,269,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
|
|
Expenditures for real estate and improvements |
|
|
(15,512,000 |
) |
|
|
(63,593,000 |
) |
Net proceeds from sales of real estate |
|
|
2,056,000 |
|
|
|
1,480,000 |
|
Net proceeds from transfers to unconsolidated joint venture, less
cash at dates of transfer |
|
|
31,513,000 |
|
|
|
|
|
Investment in unconsolidated joint ventures |
|
|
(4,302,000 |
) |
|
|
(350,000 |
) |
Distribution of capital from unconsolidated joint venture |
|
|
1,559,000 |
|
|
|
|
|
Construction escrows and other |
|
|
1,156,000 |
|
|
|
(984,000 |
) |
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities |
|
|
16,470,000 |
|
|
|
(63,447,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
|
Net (repayments)/advances (to)/from revolving credit facilities |
|
|
(89,844,000 |
) |
|
|
16,435,000 |
|
Proceeds from mortgage financings |
|
|
16,242,000 |
|
|
|
44,231,000 |
|
Mortgage repayments |
|
|
(16,457,000 |
) |
|
|
(13,519,000 |
) |
Payments of debt financing costs |
|
|
(998,000 |
) |
|
|
(2,429,000 |
) |
Termination payments related to interest rate swaps |
|
|
(5,476,000 |
) |
|
|
|
|
Noncontrolling interests: |
|
|
|
|
|
|
|
|
Contributions from consolidated joint venture minority interests, net |
|
|
|
|
|
|
12,212,000 |
|
Distributions to consolidated joint venture minority interest |
|
|
(660,000 |
) |
|
|
(2,061,000 |
) |
Redemption of Operating Partnership Units |
|
|
(485,000 |
) |
|
|
|
|
Distributions to limited partners |
|
|
(353,000 |
) |
|
|
(227,000 |
) |
Net proceeds from the sales of common stock |
|
|
65,913,000 |
|
|
|
|
|
Exercise of warrant |
|
|
10,000,000 |
|
|
|
|
|
Preferred stock distributions |
|
|
(3,938,000 |
) |
|
|
(3,938,000 |
) |
Distributions to common shareholders |
|
|
(10,542,000 |
) |
|
|
(5,046,000 |
) |
|
|
|
|
|
|
|
Net cash (used in) provided by financing activities |
|
|
(36,598,000 |
) |
|
|
45,658,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
(3,370,000 |
) |
|
|
7,480,000 |
|
Cash and cash equivalents at beginning of period |
|
|
17,164,000 |
|
|
|
8,231,000 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
13,794,000 |
|
|
$ |
15,711,000 |
|
|
|
|
|
|
|
|
11