Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact Information:
Cedar Shopping Centers, Inc.
Leo S. Ullman, Chairman, CEO and President
(516) 944-4525
lsu@cedarshoppingcenters.com
CEDAR SHOPPING CENTERS ANNOUNCES THIRD QUARTER RESULTS
- - Stabilized Property Occupancy Remains 96% -
- - Company Reiterates Full-Year Guidance -
Port Washington, New York — October 29, 2008 — Cedar Shopping Centers, Inc. (NYSE: CDR) today
reported its financial results for the quarter ended September 30, 2008.
Highlights
| • |
|
Revenues for the quarter ended September 30, 2008 increased 14.5% to $43.3 million from
$37.8 million for the comparable quarter of 2007. Revenues for the nine months ended September
30, 2008 were $129.9 million as compared to $111.0 million for the nine months ended September
30, 2007, an increase of 17.0%. |
| |
| • |
|
Funds from Operations (“FFO”) for the quarter were $14.4 million, or $0.31 per share/OP
Unit as compared to $14.2 million, or $0.31 per share/OP Unit for the comparable quarter of
2007. FFO for the nine months ended September 30, 2008 was $42.6 million, or $0.92 per
share/OP Unit as compared to $40.6 million, or $0.88 per share/OP Unit for the nine months
ended September 30, 2007. |
| |
| • |
|
Net income applicable to common shareholders was $3.3 million ($0.07 per share) for the
quarter ended September 30, 2008 as compared to $3.9 million ($0.09 per share) for the
comparable quarter of 2007. |
| |
| • |
|
Net cash provided by operating activities was $39.2 million for the nine months ended
September 30, 2008 as compared to $36.8 for the comparable period in 2007. |
| |
| • |
|
Occupancy for the Company’s stabilized portfolio as of September 30, 2008 was approximately
96% while total portfolio occupancy, including development and redevelopment properties, was
approximately 92%. |
Leo Ullman, Cedar’s CEO, stated, “Our third quarter 2008 results again confirm the strength of our
operations and continued execution of our business plan in this uncertain financial and economic
environment. We have been able to maintain 96% occupancy levels in our portfolio due to the high
percentage of strong performing supermarket anchor tenants with long-term leases. We believe our
solid balance sheet and prudent approach to our operations, developments and finances, along with
the continued financial strength of our tenants, place the Company in a strong position in the
current economic environment. We remain careful and risk averse in all aspects of our operations
and we will continue to be vigilant, as always, as we seek enhancement of shareholder value”.
Financial and Operating Results
Total revenues for the quarter ended September 30, 2008 increased 14.5% to $43.3 million from $37.8
million for the third quarter ended September 30, 2007. Total revenues for the nine months ended
September 30, 2008 were $129.9 million as compared to $111.0 million for the nine months ended
September 30, 2007, an increase of 17.0%.
Net income applicable to common shareholders was $3.3 million, or $0.07 per share, for the quarter
ended September 30, 2008, as compared to $3.9 million, or $0.09 per share, for the quarter ended
September 30, 2007. Net income for the quarter ended September 30, 2008 includes an expense of
$0.3 million, or $0.01 per share, for a mark-to-market adjustment on the Company’s deferred
compensation restricted stock liability, as compared to a mark-to-market positive adjustment of
$0.1 million for the quarter ended September 30, 2007. Net income applicable to common shareholders
was $7.6 million, or $0.17 per share, for the nine months ended September 30, 2008 as compared to
$10.5 million, or $0.24 per share, for the nine months ended September 30, 2007.
FFO was $14.4 million, or $0.31 per share/OP Unit for the quarter ended September 30, 2008, as
compared to $14.2 million, or $0.31 per share/OP Unit for the quarter ended September 30, 2007. FFO
for the third quarter of this year when compared to the third quarter
of 2007 reflects a negative difference of $0.4 million
for the mark-to-market adjustment on the Company’s deferred compensation restricted stock
liability. FFO for the third quarter of this year also reflects a reduction of approximately $0.02
per share/OP Unit from the contribution by the Company of nine properties to a joint venture with
Homburg Invest Inc. that closed late in the fourth quarter 2007 (this transaction had a minor
effect on net income). Such reductions in FFO were partially offset by the acquisition in March
2008 of joint venture interests of approximately 75% in four Pennsylvania supermarket-anchored
properties from affiliates of Kimco Realty Corporation.
FFO was $42.6 million, or $0.92 per share/OP Unit, for the nine months ended September 30, 2008, as
compared to $40.6 million, or $0.88 per share/OP Unit, for the nine months ended September 30,
2007. A reconciliation of net income applicable to common shareholders to FFO is contained in the
table accompanying this release.
Net cash flows provided by operating activities were $39.2 million for the nine months ended
September 30, 2008 as compared to $36.8 million for the corresponding period of 2007.
Same Property Results
The
Company owned 105 properties throughout both the third quarters of 2008 and 2007. Same
property net operating income was $27.5 million in the third
quarter of 2008 as compared to $27.9
million in the third quarter of 2007. The overall $384,000 (or 1.4%) decrease reflects principally
the reduction of expense recoveries and increase in bad debt expense (an expense which is
non-recoverable from tenants) from the very favorable levels achieved in the third quarter of 2007
where the Company obtained the first substantial benefits of electronic billing system upgrades
installed in 2006 and 2007. In the third quarter of 2007, the Company recovered 77% of billable
expenses as compared to 74% in the third quarter of 2008; in the third quarter of 2007, the
Company’s bad debt expense was 0.2% of total revenues as
compared to 0.9% of total revenues in the
third quarter of 2008.
2
Balance Sheet and Capital Position
Total assets were $1.67 billion at September 30, 2008 and $1.60 billion at December 31, 2007. The
Company had total debt outstanding of $957.6 million at September 30, 2008 as compared to $851.5
million at December 31, 2007. It had $71.1 million available under its secured and unsecured
revolving credit facilities and $6.0 million in available cash at September 30, 2008. The Company
implemented a new cash management system in the second quarter
pursuant to which the Company was able to
reduce its cash balance by approximately $13 million and pay down its stabilized property credit
facility by a corresponding amount. At September 30, 2008, the Company’s fixed-rate debt was
approximately 67% of its total indebtedness, with a weighted average remaining term of 6.3 years
and a weighted average interest rate of 5.7%.
The Company has an announced development pipeline of approximately $276 million that it expects to
begin to put into service over the next 18 to 24 months. As of September 30, 2008, the Company had
spent approximately $141 million of the estimated total project costs of the announced pipeline.
It expects to fund the remaining estimated balance of construction development costs with
borrowings under its stabilized property credit facility, its recently-completed development
property credit facility 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 venture arrangements.
In June 2008, the Company entered into a $150 million development property credit facility that the
Company expects to use to fund a significant amount of its development activities in 2008 and
subsequent years. In September 2008, the Company entered into a $77.7 million property-specific
construction facility for its joint venture development project in Pottsgrove, Pennsylvania.
Through September 30, 2008 the Company had borrowed $61.3 million under these facilities to fund
ongoing construction activities.
Leasing Activity
In the third quarter of 2008, the Company signed 27 renewal leases aggregating approximately 84,000
sq. ft. with an average increase in base rents of 7.4%, and 22 new leases aggregating approximately
94,000 sq. ft. with average base rent of $16.39 per sq. ft. At different properties, the Company
had 16 terminated leases aggregating approximately 49,000 sq. ft. with average base rent of $14.41
per sq. ft.
Acquisitions Subsequent to the Third Quarter
On October 7 and 9, 2008, respectively, the Company purchased Metro Square in Owings Mills,
Maryland and the remaining portion of the Smithfield Plaza Shopping Center in Smithfield, Virginia
for an aggregate purchase price of approximately $25.1 million, at an average unleveraged cash cap rate of 8.0%.
Metro Square is a 72,000 sq. ft. community shopping center anchored by an approximate 59,000 sq.
ft. Shoppers Food and Pharmacy, a member of the SuperValu supermarket group, with a lease extending
to 2030. The purchase price for this property was $15.6 million financed primarily by assumption
of an existing first mortgage loan of approximately $9.4 million. The center is shadow-anchored by
an approximate 135,000 sq. ft. Target store.
3
The Smithfield Plaza Shopping Center is an 89,000 sq. ft. addition to the 45,000 sq. ft. Farm Fresh
supermarket already owned by the Company in that center. The purchase price for this property was
$9.5 million, financed primarily by assumption of an existing first mortgage loan of approximately
$7.1 million. In addition to the supermarket, the center is anchored by a Peebles department store
and a Maxway wholesale variety store.
The total cash consideration of approximately $8.6 million for the two properties was funded from
the Company’s stabilized property credit facility.
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, and any further mark-to-market gains or losses on its deferred
compensation restricted stock liability (which have generated an expense of approximately
$387,000 in the nine months ended September 30, 2008). Depending on the timing of the contribution
of properties to a second joint venture with Homburg Invest Inc., if successfully completed, the
Company could incur a net reduction in FFO from the date of contribution of approximately $0.05 per
share on an annualized basis. The closing is presently expected to take place late in the fourth
quarter of 2008.
Supplemental Information Package
The Company has issued “Supplemental Financial Information” for the period ended September 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 September 30, 2008, when available, for further details.
Investor Conference Call
The Company will host a conference call on Thursday, October 30, 2008, at 10:00 AM Eastern time to
discuss the third quarter results. The conference call can be accessed by dialing (866) 409-1561 or
(913) 312-0396 for international participants. A live webcast of the conference call will be
available online on the Company’s website at www.cedarshoppingcenters.com. A replay of the
call will be available from 1:00 PM Eastern Time on October 30, 2008, until midnight Eastern time
on November 13, 2008. The replay dial-in numbers are (888) 203-1112 or (719) 457-0820 for
international callers. Please use passcode 2045191 for the telephonic replay. A replay of the
Company’s webcast will be available on the Company’s website for a limited time.
4
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 approximately 12.1 million
square feet of gross leasable area at 121 shopping center properties, of which approximately 75%
are anchored by supermarkets and drug stores with average remaining
lease terms of approximately 11
years. The Company also owns a substantial pipeline of development properties as well as
approximately 406 acres in primarily unimproved development parcels.
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 one of several criteria to determine
performance-based bonuses for members of senior management, (2) in performance comparisons with
other shopping center REITs, and (3) to measure compliance with certain financial covenants under
the terms of the Loan Agreements relating to the Company’s 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 Company’s calculations of FFO for the three and nine months
ended September 30, 2008 and 2007:
6
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Three months ended September 30, |
|
Nine months ended September 30, |
| |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
| |
|
|
|
|
Net income applicable to common shareholders |
|
$ |
3,277,000 |
|
|
$ |
3,925,000 |
|
|
$ |
7,613,000 |
|
|
$ |
10,501,000 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization |
|
|
11,921,000 |
|
|
|
10,080,000 |
|
|
|
37,321,000 |
|
|
|
29,747,000 |
|
Limited partners’ interest |
|
|
148,000 |
|
|
|
177,000 |
|
|
|
347,000 |
|
|
|
472,000 |
|
Minority interests in consolidated joint ventures |
|
|
412,000 |
|
|
|
333,000 |
|
|
|
1,600,000 |
|
|
|
1,028,000 |
|
Minority interests’ share of FFO applicable to
consolidated joint ventures |
|
|
(1,368,000 |
) |
|
|
(448,000 |
) |
|
|
(4,566,000 |
) |
|
|
(1,365,000 |
) |
Equity in income of unconsolidated joint venture |
|
|
(310,000 |
) |
|
|
(150,000 |
) |
|
|
(682,000 |
) |
|
|
(463,000 |
) |
FFO from unconsolidated joint venture |
|
|
360,000 |
|
|
|
233,000 |
|
|
|
941,000 |
|
|
|
701,000 |
|
| |
|
|
|
|
Funds From Operations |
|
$ |
14,440,000 |
|
|
$ |
14,150,000 |
|
|
$ |
42,574,000 |
|
|
$ |
40,621,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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FFO per common share (assuming conversion of OP Units): |
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.92 |
|
|
$ |
0.88 |
|
| |
|
|
|
|
Diluted |
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.92 |
|
|
$ |
0.88 |
|
| |
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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Weighted average number of common shares: |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in determination of basic earnings per share |
|
|
44,488,000 |
|
|
|
44,231,000 |
|
|
|
44,470,000 |
|
|
|
44,179,000 |
|
Additional shares assuming conversion of OP Units (basic) |
|
|
2,019,000 |
|
|
|
1,982,000 |
|
|
|
2,026,000 |
|
|
|
1,984,000 |
|
| |
|
|
|
|
Shares used in determination of basic FFO per share |
|
|
46,507,000 |
|
|
|
46,213,000 |
|
|
|
46,496,000 |
|
|
|
46,163,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in determination of diluted earnings per share |
|
|
44,490,000 |
|
|
|
44,234,000 |
|
|
|
44,472,000 |
|
|
|
44,183,000 |
|
Additional shares assuming conversion of OP Units (diluted) |
|
|
2,020,000 |
|
|
|
1,981,000 |
|
|
|
2,026,000 |
|
|
|
1,993,000 |
|
| |
|
|
|
|
Shares used in determination of diluted FFO per share |
|
|
46,510,000 |
|
|
|
46,215,000 |
|
|
|
46,498,000 |
|
|
|
46,176,000 |
|
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|
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|
CEDAR SHOPPING CENTERS, INC.
Consolidated Balance Sheets
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|
September 30, |
|
|
December 31, |
|
| |
|
2008 |
|
|
2007 |
|
| |
|
(unaudited) |
|
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|
|
|
Assets |
|
|
|
|
|
|
|
|
Real estate: |
|
|
|
|
|
|
|
|
Land |
|
$ |
369,473,000 |
|
|
$ |
315,599,000 |
|
Buildings and improvements |
|
|
1,339,489,000 |
|
|
|
1,282,180,000 |
|
|
|
|
|
|
|
|
|
|
|
1,708,962,000 |
|
|
|
1,597,779,000 |
|
Less accumulated depreciation |
|
|
(135,825,000 |
) |
|
|
(103,621,000 |
) |
|
|
|
|
|
|
|
Real estate, net |
|
|
1,573,137,000 |
|
|
|
1,494,158,000 |
|
|
|
|
|
|
|
|
|
|
Investment in unconsolidated joint venture |
|
|
4,902,000 |
|
|
|
3,757,000 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
5,989,000 |
|
|
|
20,307,000 |
|
Restricted cash |
|
|
17,976,000 |
|
|
|
17,839,000 |
|
Rents and other receivables, net |
|
|
7,861,000 |
|
|
|
7,640,000 |
|
Straight-line rents receivable |
|
|
13,582,000 |
|
|
|
11,446,000 |
|
Other assets |
|
|
12,850,000 |
|
|
|
9,778,000 |
|
Deferred charges, net |
|
|
33,840,000 |
|
|
|
30,059,000 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,670,137,000 |
|
|
$ |
1,594,984,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|
Mortgage loans payable |
|
$ |
682,861,000 |
|
|
$ |
661,074,000 |
|
Secured
revolving credit facilities |
|
|
274,690,000 |
|
|
|
190,440,000 |
|
Accounts payable and accrued expenses |
|
|
26,645,000 |
|
|
|
26,068,000 |
|
Unamortized intangible lease liabilities |
|
|
65,249,000 |
|
|
|
71,157,000 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,049,445,000 |
|
|
|
948,739,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interests in consolidated joint ventures |
|
|
58,792,000 |
|
|
|
62,402,000 |
|
Limited partners’ interest in Operating Partnership |
|
|
24,162,000 |
|
|
|
25,689,000 |
|
|
|
|
|
|
|
|
|
|
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
44,489,000 and 44,238,000 shares, respectively, issued and
outstanding) |
|
|
2,669,000 |
|
|
|
2,654,000 |
|
Treasury stock (718,000 and 616,000 shares, respectively, at cost) |
|
|
(9,207,000 |
) |
|
|
(8,192,000 |
) |
Additional paid-in capital |
|
|
575,608,000 |
|
|
|
572,392,000 |
|
Cumulative distributions in excess of net income |
|
|
(119,918,000 |
) |
|
|
(97,514,000 |
) |
Accumulated other comprehensive (loss) income |
|
|
(164,000 |
) |
|
|
64,000 |
|
|
|
|
|
|
|
|
Total shareholders’ equity |
|
|
537,738,000 |
|
|
|
558,154,000 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
1,670,137,000 |
|
|
$ |
1,594,984,000 |
|
|
|
|
|
|
|
|
CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Income
(unaudited)
| |
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|
|
|
|
| |
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
| |
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
| |
|
|
|
|
Revenues: |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rents |
|
$ |
35,011,000 |
|
|
$ |
30,784,000 |
|
|
$ |
104,043,000 |
|
|
$ |
89,363,000 |
|
Expense recoveries |
|
|
7,800,000 |
|
|
|
6,946,000 |
|
|
|
24,936,000 |
|
|
|
21,055,000 |
|
Other |
|
|
511,000 |
|
|
|
115,000 |
|
|
|
893,000 |
|
|
|
568,000 |
|
| |
|
|
|
|
Total revenues |
|
|
43,322,000 |
|
|
|
37,845,000 |
|
|
|
129,872,000 |
|
|
|
110,986,000 |
|
| |
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating, maintenance and management |
|
|
6,974,000 |
|
|
|
5,692,000 |
|
|
|
22,298,000 |
|
|
|
18,459,000 |
|
Real estate and other property-related taxes |
|
|
4,994,000 |
|
|
|
3,953,000 |
|
|
|
14,453,000 |
|
|
|
11,153,000 |
|
General and administrative |
|
|
2,654,000 |
|
|
|
1,847,000 |
|
|
|
7,168,000 |
|
|
|
7,065,000 |
|
Depreciation and amortization |
|
|
11,996,000 |
|
|
|
10,140,000 |
|
|
|
37,532,000 |
|
|
|
29,921,000 |
|
| |
|
|
|
|
Total expenses |
|
|
26,618,000 |
|
|
|
21,632,000 |
|
|
|
81,451,000 |
|
|
|
66,598,000 |
|
| |
|
|
|
|
| |
Operating income |
|
|
16,704,000 |
|
|
|
16,213,000 |
|
|
|
48,421,000 |
|
|
|
44,388,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income and expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, including amortization of
deferred financing costs |
|
|
(11,243,000 |
) |
|
|
(10,041,000 |
) |
|
|
(33,906,000 |
) |
|
|
(27,523,000 |
) |
Interest income |
|
|
35,000 |
|
|
|
82,000 |
|
|
|
270,000 |
|
|
|
580,000 |
|
Equity in income of unconsolidated joint venture |
|
|
310,000 |
|
|
|
150,000 |
|
|
|
682,000 |
|
|
|
463,000 |
|
| |
|
|
|
|
Total non-operating income and expense |
|
|
(10,898,000 |
) |
|
|
(9,809,000 |
) |
|
|
(32,954,000 |
) |
|
|
(26,480,000 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before minority and limited partners’ interests |
|
|
5,806,000 |
|
|
|
6,404,000 |
|
|
|
15,467,000 |
|
|
|
17,908,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interests in consolidated joint ventures |
|
|
(412,000 |
) |
|
|
(333,000 |
) |
|
|
(1,600,000 |
) |
|
|
(1,028,000 |
) |
Limited partners’ interest in Operating Partnership |
|
|
(148,000 |
) |
|
|
(177,000 |
) |
|
|
(347,000 |
) |
|
|
(472,000 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
5,246,000 |
|
|
|
5,894,000 |
|
|
|
13,520,000 |
|
|
|
16,408,000 |
|
| |
Preferred distribution requirements |
|
|
(1,969,000 |
) |
|
|
(1,969,000 |
) |
|
|
(5,907,000 |
) |
|
|
(5,907,000 |
) |
| |
|
|
|
|
Net income applicable to common shareholders |
|
$ |
3,277,000 |
|
|
$ |
3,925,000 |
|
|
$ |
7,613,000 |
|
|
$ |
10,501,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.07 |
|
|
$ |
0.09 |
|
|
$ |
0.17 |
|
|
$ |
0.24 |
|
| |
|
|
|
|
Diluted |
|
$ |
0.07 |
|
|
$ |
0.09 |
|
|
$ |
0.17 |
|
|
$ |
0.24 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to common shareholders |
|
$ |
10,010,000 |
|
|
$ |
9,952,000 |
|
|
$ |
30,017,000 |
|
|
$ |
29,823,000 |
|
| |
|
|
|
|
Per common share |
|
$ |
0.225 |
|
|
$ |
0.225 |
|
|
$ |
0.675 |
|
|
$ |
0.675 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,488,000 |
|
|
|
44,231,000 |
|
|
|
44,470,000 |
|
|
|
44,179,000 |
|
| |
|
|
|
|
Diluted |
|
|
44,490,000 |
|
|
|
44,234,000 |
|
|
|
44,472,000 |
|
|
|
44,183,000 |
|
| |
|
|
|
|
CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Cash Flows
(unaudited)
| |
|
|
|
|
|
|
|
|
| |
|
Nine months ended September 30, |
|
| |
|
2008 |
|
|
2007 |
|
Cash flow from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
13,520,000 |
|
|
$ |
16,408,000 |
|
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 |
|
|
1,361,000 |
|
|
|
231,000 |
|
Equity in income of unconsolidated joint venture |
|
|
(682,000 |
) |
|
|
(463,000 |
) |
Distributions from unconsolidated joint venture |
|
|
634,000 |
|
|
|
397,000 |
|
Limited partners’ interest in Operating Partnership |
|
|
347,000 |
|
|
|
472,000 |
|
Straight-line rents receivable |
|
|
(2,136,000 |
) |
|
|
(2,686,000 |
) |
Depreciation and amortization |
|
|
37,532,000 |
|
|
|
29,921,000 |
|
Amortization of intangible lease liabilities |
|
|
(10,377,000 |
) |
|
|
(7,624,000 |
) |
Amortization relating to stock-based compensation |
|
|
2,238,000 |
|
|
|
1,456,000 |
|
Amortization of deferred financing costs |
|
|
1,227,000 |
|
|
|
1,152,000 |
|
Increases/decreases in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Cash at consolidated joint ventures |
|
|
(979,000 |
) |
|
|
40,000 |
|
Rents and other receivables, net |
|
|
(221,000 |
) |
|
|
(899,000 |
) |
Other |
|
|
(4,769,000 |
) |
|
|
(5,343,000 |
) |
Accounts payable and accrued expenses |
|
|
1,530,000 |
|
|
|
3,769,000 |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
39,225,000 |
|
|
|
36,831,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
|
|
Expenditures for real estate and improvements |
|
|
(71,001,000 |
) |
|
|
(134,014,000 |
) |
Purchase of consolidated joint venture minority interests |
|
|
(17,454,000 |
) |
|
|
— |
|
Investment in unconsolidated joint venture |
|
|
(1,097,000 |
) |
|
|
(8,000 |
) |
Construction escrows and other |
|
|
(755,000 |
) |
|
|
(1,033,000 |
) |
|
|
|
|
|
|
|
Net cash (used in) investing activities |
|
|
(90,307,000 |
) |
|
|
(135,055,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
|
Net advances from revolving lines of credit |
|
|
84,250,000 |
|
|
|
118,420,000 |
|
Proceeds from sales of common stock |
|
|
— |
|
|
|
3,910,000 |
|
Redemption of Operating Partnership Units |
|
|
(122,000 |
) |
|
|
— |
|
Proceeds from mortgage financings |
|
|
80,947,000 |
|
|
|
25,693,000 |
|
Mortgage repayments |
|
|
(90,840,000 |
) |
|
|
(8,468,000 |
) |
Contributions from minority interest partners, net |
|
|
4,260,000 |
|
|
|
1,048,000 |
|
Distributions in excess of earnings from consolidated joint venture
minority interests |
|
|
(27,000 |
) |
|
|
— |
|
Distributions to limited partners |
|
|
(1,368,000 |
) |
|
|
(1,336,000 |
) |
Preferred distribution requirements |
|
|
(5,907,000 |
) |
|
|
(5,907,000 |
) |
Distributions to common shareholders |
|
|
(30,017,000 |
) |
|
|
(29,823,000 |
) |
Payments of deferred financing costs, net |
|
|
(4,412,000 |
) |
|
|
(2,050,000 |
) |
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
36,764,000 |
|
|
|
101,487,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
(14,318,000 |
) |
|
|
3,263,000 |
|
Cash and cash equivalents at beginning of period |
|
|
20,307,000 |
|
|
|
17,885,000 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
5,989,000 |
|
|
$ |
21,148,000 |
|
|
|
|
|
|
|
|
