Exhibit 99.2

 

LOGO

Supplemental Financial Information

June 30, 2012

(unaudited)

Cedar Realty Trust, Inc.

44 South Bayles Avenue

Port Washington, NY 11050-3765

Tel: (516) 767-6492 Fax: (516) 767-6497

www.cedarrealtytrust.com


CEDAR REALTY TRUST, INC.

Supplemental Financial Information

June 30, 2012

(unaudited)

TABLE OF CONTENTS

 

Consolidated Financial Information

  

Consolidated Balance Sheets

     3   

Consolidated Statements of Operations

     4   

Supporting Schedules to Consolidated Statements

     5-6   

Funds From Operations and Additional Disclosures

     7   

Earnings Before Interest, Taxes, Depreciation and Amortization

     8   

Summary of Outstanding Debt

     9-10   

Summaries of Debt Maturities

     11   

Consolidated Operating Portfolio Information

  

Real Estate Summary

     12-14   

Leasing Activity

     15   

Tenant Concentration

     16   

Lease Expirations

     17   

Property Net Operating Income

     18   

Dispositions

     19   

Unconsolidated Cedar/RioCan Joint Venture

  

Balance Sheets

     21   

Statements of Income

     22   

Real Estate Summary

     23-24   

Summary of Outstanding Debt

     25   

Summary of Debt Maturities

     26   

Properties Held for Sale/Conveyance

  

Real Estate Summary

     28   

Summary of Outstanding Debt

     29   

Summary of Debt Maturities

     30   

Portfolio Map Excluding Assets Held For Sale

     31   

Non-GAAP Financial Disclosures

     32   

Forward-Looking Statements

The information contained in this Supplemental Financial Information is unaudited and does not purport to disclose all items required by accounting principles generally accepted in the United States (“GAAP”). In addition, statements made or incorporated by reference herein may include certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and, as such, may involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words “may”, “will”, “should”, “estimates”, “projects”, “anticipates”, “believes”, “expects”, “intends”, “future”, and words of similar import, or the negative thereof. Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to, those set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K. Accordingly, the information contained herein should be read in conjunction with the Company’s Form 10-K for the year ended December 31, 2011 and Form 10-Q for the quarter ended June 30, 2012.

 

2


CEDAR REALTY TRUST, INC.

Consolidated Balance Sheets

 

     June 30,     December 31,  
     2012     2011  

Assets:

    

Real estate

    

Land

   $ 268,934,000      $ 268,982,000   

Buildings and improvements

     1,109,130,000        1,099,456,000   
  

 

 

   

 

 

 
     1,378,064,000        1,368,438,000   

Less accumulated depreciation

     (221,443,000     (197,578,000
  

 

 

   

 

 

 

Real estate, net

     1,156,621,000        1,170,860,000   

Real estate held for sale/conveyance

     191,538,000        207,553,000   

Investment in Cedar/RioCan joint venture

     43,173,000        44,743,000   

Cash and cash equivalents

     7,594,000        12,070,000   

Restricted cash

     15,657,000        14,707,000   

Receivables

     24,557,000        26,127,000   

Other assets and deferred charges, net

     26,190,000        33,804,000   

Assets relating to real estate held for sale/conveyance

     —          2,299,000   
  

 

 

   

 

 

 

Total assets

   $ 1,465,330,000      $ 1,512,163,000   
  

 

 

   

 

 

 

Liabilities and equity:

    

Mortgage loans payable

   $ 562,248,000      $ 588,516,000   

Mortgage loans payable — real estate held for sale/conveyance

     113,384,000        123,115,000   

Secured credit facilities

     179,500,000        166,317,000   

Accounts payable and accrued liabilities

     25,989,000        32,404,000   

Unamortized intangible lease liabilities

     32,318,000        35,017,000   

Liabilities relating to real estate held for sale/conveyance

     6,339,000        6,406,000   
  

 

 

   

 

 

 

Total liabilities

     919,778,000        951,775,000   
  

 

 

   

 

 

 

Noncontrolling interest — limited partners’ mezzanine OP Units

     658,000        4,616,000   

Commitments and contingencies

     —          —     

Equity:

    

Cedar Realty Trust, Inc. shareholders’ equity:

    

Preferred stock

     159,564,000        158,575,000   

Common stock and other shareholders’ equity

     329,422,000        335,268,000   
  

 

 

   

 

 

 

Total Cedar Realty Trust, Inc. shareholders’ equity

     488,986,000        493,843,000   
  

 

 

   

 

 

 

Noncontrolling interests:

    

Minority interests in consolidated joint ventures

     54,653,000        56,511,000   

Limited partners’ OP Units

     1,255,000        5,418,000   
  

 

 

   

 

 

 

Total noncontrolling interests

     55,908,000        61,929,000   
  

 

 

   

 

 

 

Total equity

     544,894,000        555,772,000   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 1,465,330,000      $ 1,512,163,000   
  

 

 

   

 

 

 

 

3


CEDAR REALTY TRUST, INC.

Consolidated Statements of Operations

 

     Three months ended June 30,     Six months ended June 30,  
     2012     2011     2012     2011  

Revenues:

        

Rents

   $ 26,988,000      $ 25,914,000      $ 53,683,000      $ 51,587,000   

Expense recoveries

     6,360,000        5,894,000        13,323,000        14,047,000   

Other

     3,642,000        770,000        4,461,000        1,454,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     36,990,000        32,578,000        71,467,000        67,088,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Property operating expenses:

        

Operating, maintenance and management

     5,510,000        5,858,000        11,886,000        14,284,000   

Real estate and other property-related taxes

     4,262,000        4,043,000        8,655,000        8,198,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total property operating expenses

     9,772,000        9,901,000        20,541,000        22,482,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Property operating income

     27,218,000        22,677,000        50,926,000        44,606,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other expenses:

        

General and administrative

     3,737,000        2,691,000        7,362,000        5,205,000   

Management transition charges

     —          6,350,000        —          6,530,000   

Acquisition transaction costs and terminated projects

     —          73,000        —          1,242,000   

Depreciation and amortization

     9,796,000        9,311,000        25,522,000        18,030,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expenses

     13,533,000        18,425,000        32,884,000        31,007,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     13,685,000        4,252,000        18,042,000        13,599,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-operating income and expense:

        

Interest expense, including amortization of deferred financing costs

     (9,744,000     (10,177,000     (19,923,000     (20,667,000

Accelerated write-off of deferred financing costs

     —          —          (2,607,000     —     

Interest income

     62,000        129,000        124,000        177,000   

Unconsolidated joint ventures:

        

Equity in income

     576,000        34,000        1,021,000        825,000   

Write-off of investment

     —          (7,961,000     —          (7,961,000

Gain on sales

     79,000        —          79,000        28,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total non-operating income and expense

     (9,027,000     (17,975,000     (21,306,000     (27,598,000
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     4,658,000        (13,723,000     (3,264,000     (13,999,000
  

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operations:

        

Income from operations

     944,000        778,000        2,403,000        2,247,000   

Impairment (charges)/reversals

     —          (12,258,000     1,138,000        (22,544,000

Gain on sales

     293,000        474,000        750,000        474,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total discontinued operations

     1,237,000        (11,006,000     4,291,000        (19,823,000
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     5,895,000        (24,729,000     1,027,000        (33,822,000
  

 

 

   

 

 

   

 

 

   

 

 

 

Less, net (income) loss attributable to noncontrolling interests:

        

Minority interests in consolidated joint ventures

     (662,000     22,000        (1,708,000     47,000   

Limited partners’ interest in Operating Partnership

     (8,000     579,000        97,000        839,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net (income) loss attributable to noncontrolling interests

     (670,000     601,000        (1,611,000     886,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Cedar Realty Trust, Inc.

     5,225,000        (24,128,000     (584,000     (32,936,000

Preferred stock dividends

     (3,607,000     (3,540,000     (7,138,000     (7,041,000

Preferred stock redemption costs

     (382,000     —          (382,000     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common shareholders

   $ 1,236,000      $ (27,668,000   $ (8,104,000   $ (39,977,000
  

 

 

   

 

 

   

 

 

   

 

 

 

Per common share attributable to common shareholders (basic and diluted):

        

Continuing operations

   $ 0.01      $ (0.25   $ (0.16   $ (0.30

Discontinued operations

     0.00        (0.16     0.03        (0.29
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 0.01      $ (0.41   $ (0.13   $ (0.59
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares—basic and diluted

     68,038,000        68,099,000        67,787,000        67,664,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

4


CEDAR REALTY TRUST, INC.

Supporting Schedules to Consolidated Statements

Balance Sheets Detail

 

     June 30,     December 31,  
     2012     2011  

Construction in process (included in buildings and improvements)

   $  12,369,000      $  24,475,000   
  

 

 

   

 

 

 

Receivables

    

Rents and other tenant receivables, net

   $ 5,650,000      $ 6,882,000   

Straight-line rents

     13,993,000        13,435,000   

Other

     4,914,000        5,810,000   
  

 

 

   

 

 

 
   $ 24,557,000      $ 26,127,000   
  

 

 

   

 

 

 

Other assets and deferred charges, net

    

Lease origination costs

   $ 14,204,000      $ 14,266,000   

Financing costs

     6,162,000        6,249,000   

Prepaid expenses

     2,328,000        5,857,000   

Investments related to deferred compensation liabilities

     416,000        3,562,000   

Property and other deposits

     748,000        1,430,000   

Leasehold improvements, furniture and fixtures

     1,224,000        1,035,000   

Other

     1,108,000        1,405,000   
  

 

 

   

 

 

 
   $ 26,190,000      $ 33,804,000   
  

 

 

   

 

 

 

Minority interests in consolidated joint ventures

    

Operating joint venture properties:

    

New London Mall and San Souci Plaza

     5,871,000        6,805,000   

Upland Square

     1,048,000        1,048,000   

Homburg (two properties)

     13,771,000        13,909,000   

Held-for-sale joint venture properties:

    

Homburg (seven properties)

     34,044,000        34,774,000   

CVS at Naugatuck

     —          56,000   

Heritage Crossing

     (81,000     (81,000
  

 

 

   

 

 

 
   $ 54,653,000      $ 56,511,000   
  

 

 

   

 

 

 

 

5


CEDAR REALTY TRUST, INC.

Supporting Schedules to Consolidated Statements

Statements of Operations Detail

 

     Three months ended June 30,     Six months ended June 30,  
     2012     2011     2012     2011  

Rents

        

Base rents

   $ 24,835,000      $ 24,060,000      $ 49,667,000      $ 48,022,000   

Percentage rent

     174,000        220,000        464,000        384,000   

Straight-line rents

     247,000        365,000        562,000        746,000   

Amortization of intangible lease liabilities

     1,732,000        1,269,000        2,990,000        2,435,000   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 26,988,000      $ 25,914,000      $ 53,683,000      $ 51,587,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other revenues

        

Lease termination fees

   $ 3,029,000      $ —        $ 3,029,000      $ —     

RioCan management fees

     631,000        452,000        1,277,000        986,000   

Miscellaneous

     (18,000     318,000        155,000        468,000   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 3,642,000      $ 770,000      $ 4,461,000      $ 1,454,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Equity in income of unconsolidated joint ventures:

        

Cedar/RioCan

   $ 576,000      $ 195,000      $ 1,021,000      $ 523,000   

Philadelphia redevelopment project

     —          (161,000     —          302,000   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 576,000      $ 34,000      $ 1,021,000      $ 825,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (income) loss attributable to noncontrolling interests—minority interests in consolidated joint ventures

        

Operating joint venture properties:

        

New London Mall and San Souci Plaza

   $ 218,000      $ 128,000      $ 420,000      $ 324,000   

Homburg (two properties)

     (89,000     (91,000     (237,000     (224,000

Held-for-sale joint venture properties:

        

Homburg (seven properties)

     (791,000     (247,000     (1,567,000     (473,000

CVS at Naugatuck

     —          (8,000     (324,000     (9,000

Columbia Mall

     —          240,000        —          429,000   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ (662,000   $ 22,000      $ (1,708,000   $ 47,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

6


CEDAR REALTY TRUST, INC.

Funds From Operations and Additional Disclosures

 

     Three months ended June 30,     Six months ended June 30,  
     2012     2011     2012     2011  

Net income (loss) attributable to Company’s common shareholders

   $ 1,236,000      $ (27,668,000   $ (8,104,000   $ (39,977,000

Real estate depreciation and amortization

     9,712,000        10,939,000        25,392,000        21,349,000   

Limited partners’ interest

     8,000        (579,000     (97,000     (839,000

Impairment charges/(reversals)

     —          20,247,000        (1,138,000     30,533,000   

Gain on sales

     (372,000     (474,000     (829,000     (502,000

Consolidated minority interest:

        

Share of income (loss)

     662,000        (22,000     1,708,000        (47,000

Share of FFO

     (1,377,000     (1,476,000     (2,791,000     (2,980,000

Unconsolidated joint ventures:

        

Share of income

     (576,000     (34,000     (1,021,000     (825,000

Share of FFO

     1,587,000        1,182,000        3,056,000        3,064,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Funds From Operations (“FFO”)

     10,880,000        2,115,000        16,176,000        9,776,000   

Adjustments for items affecting comparability:

        

Management transition charges and employee termination costs

     —          6,350,000        —          6,875,000   

Accelerated write-off of deferred financing costs

     —          —          2,607,000        —     

Share-based compensation mark-to-market adjustments

     (20,000     (551,000     10,000        (701,000

Preferred stock redemption costs

     382,000        —          382,000        —     

Acquisition transaction costs and terminated projects, including Company share from the Cedar/RioCan joint venture

     —          234,000        —          1,487,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Funds From Operations (“Operating FFO”)

   $ 11,242,000      $ 8,148,000      $ 19,175,000      $ 17,437,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

FFO per diluted share:

   $ 0.15      $ 0.03      $ 0.23      $ 0.14   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating FFO per diluted share:

   $ 0.16      $ 0.12      $ 0.27      $ 0.25   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of diluted common shares:

        

Common shares

     71,136,000        68,099,000        70,850,000        67,664,000   

OP Units

     462,000        1,415,000        637,000        1,415,000   
  

 

 

   

 

 

   

 

 

   

 

 

 
     71,598,000        69,514,000        71,487,000        69,079,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Additional Disclosures (Pro-Rata Share):

        

Straight-line rents

   $ 288,000      $ 452,000      $ 685,000      $ 927,000   

Amortization of intangible lease liabilities

     1,879,000        1,463,000        3,205,000        2,834,000   

Lease termination income

     3,029,000        —          3,029,000        —     

Non-real estate amortization

     642,000        1,162,000        1,357,000        2,242,000   

Share-based compensation other than mark-to-market adjustments

     845,000        787,000        1,736,000        1,766,000   

Maintenance capital expenditures

     1,295,000        644,000        2,135,000        1,053,000   

Development and redevelopment capital expenditures

     5,233,000        8,567,000        8,015,000        12,550,000   

Capitalized interest and financing costs

     450,000        818,000        745,000        1,142,000   

 

7


CEDAR REALTY TRUST, INC.

Earnings Before Interest, Taxes, Depreciation and Amortization

 

     Three months ended June 30,     Six months ended June 30,  
     2012     2011     2012     2011  

EBITDA Calculation

        

Income (loss) from continuing operations

   $ 4,658,000      $ (13,723,000   $ (3,264,000   $ (13,999,000

Add (deduct):

        

Interest expense and amortization of financing costs, net

     9,744,000        10,177,000        19,923,000        20,667,000   

Accelerated write-off of deferred financing costs

     —          —          2,607,000        —     

Depreciation and amortization

     9,796,000        9,311,000        25,522,000        18,030,000   

Minority interests share of consolidated joint venture EBITDA

     (3,023,000     (3,174,000     (6,113,000     (6,360,000

Discontinued operations:

        

Income from operations

     944,000        778,000        2,403,000        2,247,000   

Interest expense and amortization of financing costs, net

     1,891,000        2,146,000        3,847,000        4,416,000   

Depreciation and amortization

     —          1,768,000        21,000        3,604,000   

Pro-rata share attributable to Cedar/RioCan joint venture:

        

Depreciation and amortization

     1,011,000        1,035,000        2,034,000        2,028,000   

Interest expense

     844,000        937,000        1,731,000        1,816,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     25,865,000        9,255,000        48,711,000        32,449,000   

Adjustments for items affecting comparability:

        

Share-based compensation mark-to-market adjustments

     (20,000     (551,000     10,000        (701,000

Management transition charges and employee termination costs

       6,350,000        —          6,875,000   

Write-off of investment in unconsolidated joint venture

     —          7,961,000        —          7,961,000   

Acquisition transaction costs and terminated projects, including Company share from the Cedar/RioCan joint venture

     —          234,000        —          1,487,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 25,845,000      $ 23,249,000      $ 48,721,000      $ 48,071,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Pro-rata share of outstanding debt (a)

   $ 805,471,000      $ 843,108,000      $ 805,471,000      $ 843,108,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges (a)

        

Interest expense

   $ 11,476,000      $ 11,234,000      $ 23,228,000      $ 23,082,000   

Interest expense — consolidated minority interests share

     (1,629,000     (1,661,000     (3,289,000     (3,308,000

Interest expense — Cedar/RioCan joint venture

     844,000        937,000        1,731,000        1,816,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest Expense

     10,691,000        10,510,000        21,670,000        21,590,000   

Preferred stock dividends

     3,607,000        3,540,000        7,138,000        7,041,000   

Pro-rata share of scheduled mortgage repayments

     2,576,000        2,246,000        5,216,000        4,483,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges

   $ 16,874,000      $ 16,296,000      $ 34,024,000      $ 33,114,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Debt and Coverage Ratios (b)

        

Debt to Adjusted EBITDA (c)

     8.7  x      9.1  x      8.7  x      8.9  x 

Interest coverage ratio (Based on Adjusted EBITDA)

     2.1  x      2.2  x      2.1  x      2.2  x 

Fixed charge coverage ratio (Based on Adjusted EBITDA)

     1.4  x      1.4  x      1.3  x      1.5  x 

 

(a) Includes properties “held for sale/conveyance”.
(b) Ratios exclude lease termination income.
(c) The amounts used in the calculation of debt to Adjusted EBITDA ratio have been adjusted to exclude (i) the results of properties sold during each of the respective periods as the related debt is no longer outstanding at the end of such period and (ii) for the 2012 periods, the results and debt related to the four properties in the process of being conveyed to their respective lenders.

 

8


CEDAR REALTY TRUST, INC.

Summary of Outstanding Debt

As of June 30, 2012

 

     Percent     Maturity      Interest     Stated  

Property

   Owned     Date      rate (a)     contract amounts  

Fixed-rate mortgages:

         

Consolidated Properties:

         

Washington Center Shoppes

     100     Dec 2012         5.9   $ 8,253,000   

Fort Washington

     100     Jan 2013         5.4     5,466,000   

Fairview Plaza

     100     Feb 2013         5.7     5,193,000   

Academy Plaza

     100     Mar 2013         7.3     8,766,000   

General Booth Plaza

     100     Aug 2013         6.1     5,020,000   

Kempsville Crossing

     100     Aug 2013         6.1     5,664,000   

Port Richmond Village

     100     Aug 2013         6.5     14,015,000   

Smithfield Plaza

     100     Aug 2013         6.1     3,234,000   

Suffolk Plaza

     100     Aug 2013         6.1     4,246,000   

Virginia Little Creek

     100     Aug 2013         6.1     4,541,000   

Timpany Plaza

     100     Jan 2014         6.1     7,835,000   

Trexler Mall

     100     May 2014         5.5     20,347,000   

Coliseum Marketplace

     100     Jul 2014         6.1     11,382,000   

Fieldstone Marketplace

     20     Jul 2014         6.0     17,516,000   

King’s Plaza

     100     Jul 2014         6.0     7,465,000   

Liberty Marketplace

     100     Jul 2014         6.1     8,563,000   

Yorktowne Plaza

     100     Jul 2014         6.0     19,528,000   

Mechanicsburg Giant

     100     Nov 2014         5.5     8,857,000   

Elmhurst Square Shopping Center

     100     Dec 2014         5.4     3,852,000   

New London Mall

     40     Apr 2015         4.9     27,365,000   

Carbondale Plaza

     100     May 2015         6.4     4,818,000   

Oak Ridge Shopping Center

     100     May 2015         5.5     3,323,000   

Pine Grove Plaza

     100     Sep 2015         5.0     5,516,000   

Groton Shopping Center

     100     Oct 2015         5.3     11,570,000   

Southington Shopping Center

     100     Nov 2015         5.1     5,521,000   

Jordan Lane

     100     Dec 2015         5.5     12,508,000   

Oakland Mills

     100     Jan 2016         5.5     4,703,000   

Smithfield Plaza

     100     May 2016         6.2     6,845,000   

West Bridgewater

     100     Sep 2016         6.2     10,651,000   

Carman’s Plaza

     100     Oct 2016         6.2     33,500,000   

Hamburg Commons

     100     Oct 2016         6.1     4,973,000   

Meadows Marketplace

     20     Nov 2016         5.6     9,914,000   

San Souci Plaza

     40     Dec 2016         6.2     27,200,000   

Camp Hill Shopping Center

     100     Jan 2017         5.5     64,661,000   

Golden Triangle

     100     Feb 2018         6.0     20,222,000   

East Chestnut

     100     Apr 2018         7.4     1,582,000   

Townfair Center

     100     Jul 2021         5.2     16,213,000   

Gold Star Plaza

     100     May 2019         7.3     1,833,000   

Newport Plaza

     100     Jan 2020         5.9     5,411,000   

Halifax Plaza

     100     Apr 2020         6.3     4,135,000   

Swede Square

     100     Nov 2020         5.5     10,383,000   

Colonial Commons

     100     Feb 2021         5.5     27,504,000   

Virginia Little Creek

     100     Sep 2021         8.0     334,000   

Metro Square

     100     Nov 2029         7.5     8,637,000   
         

 

 

 

Total Fixed-Rate Mortgages

       4.0 years         5.8   $ 499,065,000   
         

 

 

 
       weighted average     

 

9


CEDAR REALTY TRUST, INC.

Summary of Outstanding Debt (Continued)

As of June 30, 2012

 

Property

   Percent
Owned
    Maturity
Date
     Interest
rate (a)
    Stated
contract amounts
 

Variable-rate mortgage:

         

Upland Square

     100 %(b)      Oct 2013         3.0     63,326,000   
         

 

 

 

Total mortgages at stated contract amounts

       3.7 years         5.5     562,391,000   
       weighted average     

Unamortized discount/premium

            (143,000
         

 

 

 

Total mortgage debt (including unamortized discount/premium)

            562,248,000   
         

 

 

 

Corporate Credit Facility:

         

Revolving facility

       Jan 2015         3.0     104,500,000   

Term loan

       Jan 2016         3.0     75,000,000   
         

 

 

 
       3.0 years         3.0     179,500,000   
         

 

 

 
       weighted average     

Total Consolidated Debt (Excluding Held for Sale/Conveyance Mortgage Debt)

       3.6 years         4.9   $ 741,748,000   
         

 

 

 
       weighted average     

Pro-rata share of total debt reconciliation:

         

Total consolidated debt (excluding held for sale/conveyance mortgage debt)

          $ 741,748,000   

Less pro-rata share attributable to consolidated joint venture minority interests

            (54,334,000

Plus pro-rata share attributable to the unconsolidated Cedar/RioCan joint venture (c)

            62,979,000   

Plus pro-rata share attributable to properties held for sale/conveyance (d)

            55,078,000   
         

 

 

 

Pro-rata share of total debt

          $ 805,471,000   
         

 

 

 

Pro-rata share of fixed debt

          $ 543,745,000   

Pro-rata share of variable debt

            261,726,000   
         

 

 

 

Pro-rata share of total debt

          $ 805,471,000   
         

 

 

 

Percentage of pro-rata fixed debt

            67.5

Percentage of pro-rata variable debt

            32.5
         

 

 

 
            100.0
         

 

 

 

 

(a) For variable rate debt, rate in effect as of June 30, 2012.
(b) Although the ownership percentages for this joint venture is 60%, the Company has included 100% of this joint venture's debt and results of operations in its pro-rata calculations, based on partnership earnings promotes, a loan guaranty, and/or other terms of the related joint venture agreement.
(c) See “Summary of Outstanding Joint Venture Debt.”
(d) See “Summary of Outstanding Debt—Held for Sale Properties.”

 

10


CEDAR REALTY TRUST, INC.

Summaries of Debt Maturities

As of June 30, 2012

 

Consolidated Properties Including Properties Held for Sale

 
Maturity   Cedar pro-rata share of:     JV Partners pro-rata share of:        
schedule   Scheduled     Balloon     Credit           Scheduled     Balloon              

by year

  Amortization     Payments     Facility     Total     Amortization     Payments     Total     Total  

2012

  $ 4,512,000      $ 38,200,000 (a)    $ —        $ 42,712,000      $ 661,000      $ —        $ 661,000      $ 43,373,000   

2013

    8,225,000        117,107,000 (b)      —          125,332,000        1,410,000        —          1,410,000        126,742,000   

2014

    5,943,000        89,421,000        —          95,364,000        1,279,000        22,571,000        23,850,000        119,214,000   

2015

    4,628,000        61,476,000        104,500,000        170,604,000        916,000        36,783,000        37,699,000        208,303,000   

2016

    4,575,000        80,657,000 (a)      75,000,000        160,232,000        449,000        31,275,000        31,724,000        191,956,000   

2017

    2,659,000        67,073,000 (a)      —          69,732,000        112,000        17,184,000        17,296,000        87,028,000   

2018

    1,964,000        32,905,000        —          34,869,000        —          —          —          34,869,000   

2019

    1,592,000        —          —          1,592,000        —          —          —          1,592,000   

2020

    1,419,000        12,169,000        —          13,588,000        —          —          —          13,588,000   

2021

    604,000        22,383,000        —          22,987,000        —          —          —          22,987,000   

Thereafter

    5,008,000        472,000        —          5,480,000        —          —          —          5,480,000   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 41,129,000      $ 521,863,000      $ 179,500,000      $ 742,492,000      $ 4,827,000      $ 107,813,000      $ 112,640,000      $ 855,132,000   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated Properties Excluding Properties Held for Sale

 
Maturity   Cedar pro-rata share of:     JV Partners pro-rata share of:        
schedule   Scheduled     Balloon     Credit           Scheduled     Balloon              

by year

  Amortization     Payments     Facility     Total     Amortization     Payments     Total     Total  

2012

  $ 4,363,000      $ 8,195,000      $ —        $ 12,558,000      $ 140,000      $ —        $ 140,000      $ 12,698,000   

2013

    7,906,000        117,107,000 (b)      —          125,013,000        302,000        —          302,000        125,315,000   

2014

    5,616,000        87,154,000        —          92,770,000        151,000        13,502,000        13,653,000        106,423,000   

2015

    4,392,000        56,385,000        104,500,000        165,277,000        125,000        16,419,000        16,544,000        181,821,000   

2016

    3,707,000        71,520,000        75,000,000        150,227,000        150,000        23,545,000        23,695,000        173,922,000   

2017

    2,600,000        60,478,000        —          63,078,000        —          —          —          63,078,000   

2018

    1,964,000        32,905,000        —          34,869,000        —          —          —          34,869,000   

2019

    1,592,000        —          —          1,592,000        —          —          —          1,592,000   

2020

    1,419,000        12,169,000        —          13,588,000        —          —          —          13,588,000   

2021

    604,000        22,383,000        —          22,987,000        —          —          —          22,987,000   

Thereafter

    4,983,000        472,000        —          5,455,000        —          —          —          5,455,000   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 39,146,000      $ 468,768,000      $ 179,500,000      $ 687,414,000      $ 868,000      $ 53,466,000      $ 54,334,000      $ 741,748,000   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Includes amounts relating to properties in the process of being conveyed to their respective lenders (2012- $11.1 million, 2016- $7.9 million and 2017- $2.5 million).
(b) Includes $62.2 million of property-specific construction financing, due in October 2013, subject to a one-year extension option.

 

11


CEDAR REALTY TRUST, INC.

Real Estate Summary

As of June 30, 2012

 

                                    Average              
          Percent     Year             %     base rent per      Major Tenants (a)  

Property Description

   State    owned     acquired      GLA      occupied     leased sq. ft.      Name    GLA  

Connecticut

                     

Groton Shopping Center

   CT      100     2007         117,986         89.4   $ 11.06       TJ Maxx      30,000   

Jordan Lane

   CT      100     2005         181,730         96.8     10.87       Stop & Shop      60,632   
                   CW Price      39,280   
                   Retro Fitness      20,283   

New London Mall

   CT      40     2009         259,293         91.8     14.08       Shoprite      64,017   
                   Marshalls      30,354   
                   Homegoods      25,432   
                   Petsmart      23,500   
                   AC Moore      20,932   

Oakland Commons

   CT      100     2007         90,100         39.1     0.17       Bristol Ten Pin      35,189   

Southington Shopping Center

   CT      100     2003         155,842         100.0     6.86       Wal-Mart      95,482   
                   NAMCO      20,000   

The Brickyard

   CT      100     2004         249,200         44.6     7.89       Home Depot      103,003   
          

 

 

            

Total Connecticut

             1,054,151         77.9     10.20         
          

 

 

            

Maryland

                     

Kenley Village

   MD      100     2005         51,894         73.7     8.77       Food Lion      29,000   

Metro Square

   MD      100     2008         71,896         100.0     18.79       Shoppers Food Warehouse      58,668   

Oakland Mills

   MD      100     2005         58,224         100.0     13.61       Food Lion      43,470   

San Souci Plaza

   MD      40     2009         264,134         86.4     9.65       Shoppers Food Warehouse      61,466   
                   Marshalls      27,000   
                   Maximum Health and Fitness      15,612   

St. James Square

   MD      100     2005         39,903         100.0     11.40       Food Lion      33,000   

Valley Plaza

   MD      100     2003         190,939         100.0     4.98       K-Mart      95,810   
                   Ollie’s Bargain Outlet      41,888   
                   Tractor Supply      32,095   

Yorktowne Plaza

   MD      100     2007         158,982         96.3     13.80       Food Lion      37,692   
          

 

 

            

Total Maryland

             835,972         93.4     10.51         
          

 

 

            

Massachusetts

                     

Fieldstone Marketplace

   MA      20     2005         193,970         95.8     11.32       Shaw’s      68,000   
                   Flagship Cinema      41,975   
                   New Bedford Wine and Spirits      15,180   

Kings Plaza

   MA      100     2007         168,243         97.2     6.09       Work Out World      42,997   
                   CW Price      28,504   
                   Ocean State Job Lot      20,300   
                   Savers      19,339   

Norwood Shopping Center

   MA      100     2006         102,459         98.2     7.74       Hannaford Brothers      42,598   
                   Rocky’s Ace Hardware      18,830   
                   Dollar Tree      16,798   

Price Chopper Plaza

   MA      100     2007         101,824         91.1     10.95       Price Chopper      58,545   

The Shops at Suffolk Downs

   MA      100     2005         121,251         86.8     12.70       Stop & Shop      74,977   

Timpany Plaza

   MA      100     2007         183,775         93.1     6.72       Stop & Shop      59,947   
                   Big Lots      28,027   
                   Gardner Theater      27,576   

West Bridgewater Plaza

   MA      100     2007         133,039         96.9     9.04       Shaw’s      57,315   
                   Big Lots      25,000   
                   Planet Fitness      15,000   
          

 

 

            

Total Massachusetts

             1,004,561         94.4     9.01         
          

 

 

            

New Jersey

                     

Carll’s Corner

   NJ      100     2007         129,582         85.4     8.83       Acme Markets      55,000   
                   Peebles      18,858   

Pine Grove Plaza

   NJ      100     2003         86,089         84.7     10.79       Peebles      24,963   

Washington Center Shoppes

   NJ      100     2001         157,394         94.3     8.79       Acme Markets      66,046   
                   Planet Fitness      20,742   
          

 

 

            

Total New Jersey

             373,065         89.0     9.24         
          

 

 

            

 

12


CEDAR REALTY TRUST, INC.

Real Estate Summary (Continued)

As of June 30, 2012

 

                                Average         
        Percent     Year           %     base rent per     

Major Tenants (a)

 

Property Description

  State   owned     acquired     GLA     occupied     leased sq. ft.     

Name

   GLA  

New York

                 

Carman’s Plaza

  NY     100     2007        194,512        91.6     16.93       Pathmark      52,211   
       

 

 

           
               Extreme Fitness      27,598   
               Home Goods      25,806   
               Department of Motor Vehicle      19,310   

Pennsylvania

                 

Academy Plaza

  PA     100     2001        151,977        82.1     13.46       Acme Markets      50,918   

Camp Hill

  PA     100     2002        470,117        99.3     13.50       Boscov’s      167,597   
               Giant Foods      92,939   
               LA Fitness      45,000   
               Orthopedic Inst of PA      40,904   
               Barnes & Noble      24,908   
               Staples      20,000   

Carbondale Plaza

  PA     100     2004        121,135        90.0     6.78       Weis Markets      52,720   
               Peebles      18,000   

Circle Plaza

  PA     100     2007        92,171        100.0     2.74       K-Mart      92,171   

Colonial Commons

  PA     100     2011        474,765        84.1     12.75       Giant Foods      67,815   
               Dick’s Sporting Goods      56,000   
               L.A. Fitness      41,325   
               Ross Dress For Less      30,000   
               Marshalls      27,000   
               JoAnn Fabrics      25,500   
               David’s Furniture      24,970   
               Office Max      23,500   

Crossroads II

  PA     100 % (b)      2008        133,188        90.5     20.00       Giant Foods      78,815   

East Chestnut

  PA     100     2005        21,180        100.0     13.39       Rite Aid      11,180   

Fairview Commons

  PA     100     2007        42,314        56.2     9.45       Family Dollar      10,789   

Fairview Plaza

  PA     100     2003        71,979        100.0     11.94       Giant Foods      61,637   

Fort Washington

  PA     100     2002        41,000        100.0     19.90       LA Fitness      41,000   

Gold Star Plaza

  PA     100     2006        71,720        82.2     8.91       Redner’s      48,920   

Golden Triangle

  PA     100     2003        202,943        98.2     12.47       LA Fitness      44,796   
               Marshalls      30,000   
               Staples      24,060   
               Just Cabinets      18,665   
               Aldi      15,242   

Halifax Plaza

  PA     100     2003        51,510        100.0     11.81       Giant Foods      32,000   

Hamburg Commons

  PA     100     2004        99,580        97.3     6.59       Redner’s      56,780   
               Peebles      19,683   

Huntingdon Plaza

  PA     100     2004        142,845        71.9     5.32       Sears      26,150   
               Peebles      22,060   

Lake Raystown Plaza

  PA     100     2004        142,559        95.7     12.31       Giant Foods      63,835   
               Tractor Supply      32,711   

Liberty Marketplace

  PA     100     2005        68,200        91.2     17.47       Giant Foods      55,000   

Meadows Marketplace

  PA     20     2004        91,518        100.0     15.42       Giant Foods      67,907   

Mechanicsburg Giant

  PA     100     2005        51,500        100.0     21.78       Giant Foods      51,500   

Newport Plaza

  PA     100     2003        64,489        100.0     11.52       Giant Foods      43,400   

Northside Commons

  PA     100     2008        64,710        96.1     9.89       Redner's Market      48,519   

Palmyra Shopping Center

  PA     100     2005        111,051        72.9     6.28       Weis Markets      46,912   
               Rite Aid      18,104   

Port Richmond Village

  PA     100     2001        154,908        96.8     12.51       Thriftway      40,000   
               Pep Boys      20,615   
               City Stores, Inc.      15,200   

River View Plaza I, II and III

  PA     100     2003        244,034        84.1     18.59       United Artists      77,700   
               Avalon Carpet      25,000   
               Pep Boys      22,000   
               Staples      18,000   

South Philadelphia

  PA     100     2003        283,415        82.3     14.22       Shop Rite      54,388   
               Ross Dress For Less      31,349   
               Bally’s Total Fitness      31,000   
               Modell’s      20,000   

 

13


CEDAR REALTY TRUST, INC.

Real Estate Summary (Continued)

As of June 30, 2012

 

                                  Average        
          Percent     Year           %     base rent per    

Major Tenants (a)

 

Property Description

  State     owned     acquired     GLA     occupied     leased sq. ft.    

Name

  GLA  

Pennsylvania (continued)

               

Swede Square

    PA        100     2003        100,816        95.0     15.99      LA Fitness     37,200   

The Commons

    PA        100     2004        203,426        87.5     9.32      Bon-Ton     54,500   
              Shop’n Save     52,654   
              TJ Maxx     24,404   

The Point

    PA        100     2000        268,037        99.0     12.41      Burlington Coat Factory     76,665   
              Giant Foods     76,627   
              AC Moore     24,890   
              Staples     24,000   

Townfair Center

    PA        100     2004        218,662        97.2     8.67      Lowe’s Home Centers     95,173   
              Giant Eagle     83,821   
              Michael’s Store     17,592   

Trexler Mall

    PA        100     2005        339,363        90.2     9.58      Kohl’s     88,248   
              Bon-Ton     62,000   
              Lehigh Wellness Partners     30,594   
              Trexlertown Fitness Club     28,870   
              Marshall’s     28,591   

Trexlertown Plaza

    PA        100     2006        316,143        78.1     13.19      Giant Foods     78,335   
              Redner’s     47,900   
              Big Lots     33,824   
              Sears     22,500   
              Tractor Supply     19,097   

Upland Square

    PA        100 % (b)      2007        391,578        91.8     16.79      Giant Foods     78,900   
              Carmike Cinema     45,276   
              LA Fitness     42,000   
              Best Buy     30,000   
              TJ Maxx     25,000   
              Bed, Bath & Beyond     24,721   
              A.C. Moore     21,600   
              Staples     18,336   
       

 

 

         

Total Pennsylvania

          5,302,833        90.2     12.59       
       

 

 

         

Virginia

               

Annie Land Plaza

    VA        100     2006        42,500        97.2     9.38      Food Lion     29,000   

Coliseum Marketplace

    VA        100     2005        105,998        100.0     15.82      Farm Fresh     57,662   
              Michael’s     23,981   

Elmhurst Square

    VA        100     2006        66,250        89.1     9.30      Food Lion     38,272   

General Booth Plaza

    VA        100     2005        71,639        100.0     13.03      Farm Fresh     53,758   

Kempsville Crossing

    VA        100     2005        94,477        97.3     11.16      Farm Fresh     73,878   

Martin's at Glen Allen

    VA        100     2005        63,328        100.0     6.61      Martin’s     63,328   

Oak Ridge Shopping Center

    VA        100     2006        38,700        100.0     10.62      Food Lion     33,000   

Smithfield Plaza

    VA        100     2005/2008        134,664        95.3     9.30      Farm Fresh     45,544   
              Maxway     21,600   
              Peebles     21,600   

Suffolk Plaza

    VA        100     2005        67,216        100.0     9.40      Farm Fresh     67,216   

Ukrop's at Fredericksburg

    VA        100     2005        63,000        100.0     17.42      Ukrop’s Supermarket     63,000   

Virginia Little Creek

    VA        100     2005        69,620        100.0     11.12      Farm Fresh     66,120   
       

 

 

         

Total Virginia

          817,392        97.9     11.37       
       

 

 

         

Total Consolidated Properties, Excluding Held for Sale/Conveyance Properties — “Operating Portfolio”

          9,582,486        90.2     11.63       

Total Cedar/RioCan Unconsolidated Joint Venture (c)

      20       3,711,274        96.4     13.41       
       

 

 

         

Total “Managed Portfolio”

          13,293,760        91.9   $ 12.15       
       

 

 

         

 

(a) Major tenants are determined as tenants with 15,000 or more sq.ft of GLA, tenants at single-tenant properties, or the largest tenant at a property.
(b) Although the ownership percentages for these joint ventures is 60%, the Company has included 100% of these joint ventures debt and results of operations in its pro-rata calculations, based on partnership earnings promotes, loan guaranties, and/or other terms of the related joint venture agreements.
(c) See “Joint Venture Real Estate Summary”, for details of the Cedar/RioCan portfolio.

 

14


CEDAR REALTY TRUST, INC.

Leasing Activity

 

     Three months ended     Year to date  
     June 30, 2012     June 30, 2012  

Renewals (a)

    

Leases signed

     31        58   

Square feet

     74,000        203,000   

New rent per sq.ft (b)

   $ 13.13      $ 12.45   

Prior rent per sq. ft (b)

   $ 12.10      $ 11.62   

Cash basis % change

     8.6     7.1

Tenant improvements per sq. ft.

   $ 0.00      $ 0.00   

Average lease term (years)

     2.5        3.9   

New Leases

    

Leases signed

     13        24   

Square feet

     62,000        138,000   

New rent per sq.ft (b)

   $ 13.08      $ 12.89   

Tenant improvements per sq. ft. (c)

   $ 11.76      $ 6.70   

Average lease term (years)

     6.7        10.3   

Renewals and New Leases

    

Leases signed

     44        82   

Square feet

     136,000        341,000   

New rent per sq.ft (b)

   $ 13.11      $ 12.63   

Tenant improvements per sq. ft. (c)

   $ 5.36      $ 2.70   

Average lease term (years)

     4.5        6.5   

 

(a) Includes leases that renewed with no increase pursuant to their terms. The renewal results, excluding such leases with no contractual increase, would have been as follows:

 

     Three months ended     Year to date  
     June 30, 2012     June 30, 2012  

Leases signed

     24        45   

Square feet

     45,000        157,000   

Cash basis % change

     11.6     8.7

 

(b) New rent per sq. ft. represents the minimum cash rent under the new lease for the first 12 months of the term. Prior rent per sq. ft. represents the minimum cash rent under the prior lease for the last 12 months of the previous term.
(c) Includes tenant allowance and landlord work. Excludes first generation space.

 

15


CEDAR REALTY TRUST, INC.

Tenant Concentration (Based on Annualized Base Rent)

As of June 30, 2012

 

     Number                          Annualized      Percentage  
     of                   Annualized      base rent      annualized  

Tenant

   stores      GLA      % of GLA     base rent      per sq. ft.      base rents  

Top twenty tenants (a):

                

Giant Foods

     14         912,000         9.5   $ 13,759,000       $ 15.09         13.7

LA Fitness

     7         282,000         2.9     4,447,000         15.77         4.4

Farm Fresh

     6         364,000         3.8     3,909,000         10.74         3.9

Dollar Tree

     19         194,000         2.0     1,928,000         9.94         1.9

Food Lion

     7         243,000         2.5     1,925,000         7.92         1.9

Stop & Shop

     3         196,000         2.0     1,802,000         9.19         1.8

Shop Rite

     2         118,000         1.2     1,695,000         14.36         1.7

Staples

     5         104,000         1.1     1,692,000         18.80         1.7

Redner’s

     4         202,000         2.1     1,514,000         7.50         1.5

United Artists

     1         78,000         0.8     1,411,000         18.09         1.4

Shaw’s

     2         125,000         1.3     1,389,000         11.11         1.4

Shoppers Food Warehouse

     2         120,000         1.3     1,237,000         10.31         1.2

Ukrop’s

     1         63,000         0.7     1,098,000         17.43         1.1

Marshalls

     5         143,000         1.5     1,097,000         7.67         1.1

Carmike Cinema

     1         45,000         0.5     1,034,000         22.98         1.0

Rite Aid

     6         65,000         0.7     943,000         14.51         0.9

Giant Eagle

     1         84,000         0.9     922,000         10.98         0.9

Dick’s Sporting Goods

     1         56,000         0.6     812,000         14.50         0.8

Home Depot

     1         103,000         1.1     773,000         7.50         0.8

Acme Markets

     3         172,000         1.8     756,000         4.40         0.8
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Sub-total top twenty tenants

     91         3,669,000         38.3     44,143,000         12.03         43.9

Remaining tenants

     768         4,973,000         51.9     56,355,000         11.33         56.1
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Sub-total all tenants (b)

     859         8,642,000         90.2   $ 100,498,000       $ 11.63         100.0
          

 

 

    

 

 

    

 

 

 

Vacant space

     N/A         940,000         9.8        
  

 

 

    

 

 

    

 

 

         

Total

     859         9,582,000         100.0        
  

 

 

    

 

 

    

 

 

         

 

(a) Several of the tenants listed above share common ownership with other tenants:

(1) Giant Foods, Stop & Shop, and Martin’s at Glen Allen (GLA of 63,000; annualized base rent of $418,000), and (2) Farm Fresh, Shaw’s, Shop’n Save (GLA of 53,000; annualized base rent of $532,000) , Shoppers Food Warehouse, and Acme Markets.

 

(b) Comprised of large tenants (greater than 15,000 sq. ft.) and small tenants as follows:

 

 

                  Annualized     

Annualized

base rent

    

Percentage

annualized

 
     GLA      % of GLA     base rent      per sq. ft.      base rents  

Large tenants

     6,091,000         70.5   $ 60,767,000       $ 9.98         60.5

Small tenants

     2,551,000         29.5     39,731,000         15.57         39.5
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

     8,642,000         100.0   $ 100,498,000       $ 11.63         100.0
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

16


CEDAR REALTY TRUST, INC.

Lease Expirations

As of June 30, 2012

 

Year of lease

expiration

   Number
of leases
expiring
     GLA
expiring
     Percentage
of GLA
expiring
    Annualized
expiring
base rents
     Annualized
expiring  base
rents per sq. ft.
     Percentage
of  annualized
expiring
base rents
 

Month-To-Month

     22         55,000         0.6   $ 795,000       $ 14.45         0.8

2012

     54         163,000         1.9     1,873,000         11.49         1.9

2013

     120         546,000         6.3     7,363,000         13.49         7.3

2014

     131         1,185,000         13.7     10,664,000         9.00         10.6

2015

     143         1,278,000         14.8     13,561,000         10.61         13.5

2016

     105         878,000         10.2     9,367,000         10.67         9.3

2017

     93         883,000         10.2     10,914,000         12.36         10.9

2018

     40         489,000         5.7     6,597,000         13.49         6.6

2019

     25         335,000         3.9     3,856,000         11.51         3.8

2020

     31         882,000         10.2     8,093,000         9.18         8.1

2021

     30         401,000         4.6     5,821,000         14.52         5.8

2022

     19         131,000         1.5     1,666,000         12.72         1.7

Thereafter

     46         1,416,000         16.4     19,928,000         14.07         19.8
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

All tenants

     859         8,642,000         100.0   $ 100,498,000       $ 11.63         100.0
          

 

 

    

 

 

    

 

 

 

Vacant space

     N/A         940,000         N/A           
  

 

 

    

 

 

    

 

 

         

Total portfolio

     859         9,582,000         N/A           
  

 

 

    

 

 

    

 

 

         

 

17


CEDAR REALTY TRUST, INC.

Property Net Operating Income (“NOI”)

Same-Property (a)

 

     Three months ended June 30,     Percent  
     2012     2011     Change  

Rental revenues and expense recoveries (b)

   $ 24,827,000      $ 24,488,000        1.4

Operating expenses (c)

     7,111,000        6,969,000        2.0
  

 

 

   

 

 

   
   $ 17,716,000      $ 17,519,000        1.1
  

 

 

   

 

 

   

Occupancy

     92.4     92.5  

No. of properties

     60        60     
     Six months ended June 30,     Percent  
     2012     2011     Change  

Rental revenues and expense recoveries (b)

   $ 50,330,000      $ 50,997,000        -1.3

Operating expenses (c)

     14,580,000        16,127,000        -9.6
  

 

 

   

 

 

   
   $ 35,750,000      $ 34,870,000        2.5
  

 

 

   

 

 

   

Occupancy

     92.4     92.5  

No. of properties

     60        60     

 

(a) Same properties include only those consolidated properties that were owned and operated for the entirety of both comparative periods, and exclude ground-up developments and redevelopment properties, and properties treated as “held for sale/conveyance”.
(b) Rental revenues and expense recoveries exclude the effects of straight-line rent adjustments, amortization of intangible lease liabilities, and lease termination income.
(c) Operating expenses include intercompany management fee expense.

 

18


CEDAR REALTY TRUST, INC.

Dispositions

 

     Percent                 Date      Sales  

Property

   owned     Location    GLA      Sold      Price  

Hilliard Discount Drug Mart Plaza

     100   Hilliard, OH      40,988         2/7/2012       $ 1,434,000   

First Merit Bank at Akron

     100   Akron, OH      3,200         2/23/2012         633,000   

Grove City Discount Drug Mart Plaza

     100   Grove City, OH      40,848         3/12/2012         1,925,000   

CVS at Naugatuck

     50   Naugatuck, CT      13,225         3/20/2012         3,350,000   

CVS at Bradford

     100   Bradford, PA      10,722         3/30/2012         967,000   

CVS at Celina

     100   Celina, OH      10,195         3/30/2012         1,449,000   

CVS at Erie

     100   Erie, PA      10,125         3/30/2012         1,278,000   

CVS at Portage Trail

     100   Akron, OH      10,722         3/30/2012         1,061,000   

Rite Aid at Massillon

     100   Massillon, OH      10,125         3/30/2012         1,492,000   

Kingston Plaza

     100   Kingston, NY      5,324         4/12/2012         1,182,000   

Stadium Plaza

     100   East Lansing, MI      77,688         5/3/2012         5,400,000   

Blue Mountain Commons (land parcel)

     100   Harrisburg, PA      N/A         6/19/2012         102,000   

Oregon Pike (land parcel)

     100   Lancaster, PA      N/A         6/28/2012         1,100,000   
             

 

 

 

Total

              $ 21,373,000   
             

 

 

 

 

19


 

LOGO

Cedar/RioCan Unconsolidated 20%-Owned Joint Venture

 

20


CEDAR REALTY TRUST, INC.

Cedar/RioCan Joint Venture

Balance Sheets

 

     June 30,      December 31,  
     2012      2011  

Assets:

     

Real estate, net

   $ 523,159,000       $ 532,071,000   

Cash and cash equivalents

     11,581,000         12,797,000   

Restricted cash

     3,195,000         3,689,000   

Rents and other receivables

     1,650,000         2,419,000   

Straight-line rents

     3,523,000         2,743,000   

Deferred charges, net

     11,856,000         12,682,000   

Other assets

     4,144,000         5,549,000   
  

 

 

    

 

 

 

Total assets

   $ 559,108,000       $ 571,950,000   
  

 

 

    

 

 

 

Liabilities and partners’ capital:

     

Mortgage loans payable

   $ 314,895,000       $ 317,293,000   

Due to the Company

     527,000         1,203,000   

Unamortized intangible lease liabilities

     20,451,000         22,182,000   

Other liabilities

     7,282,000         8,248,000   
  

 

 

    

 

 

 

Total liabilities

     343,155,000         348,926,000   

Preferred stock

     97,000         97,000   

Partners’ capital

     215,856,000         222,927,000   
  

 

 

    

 

 

 

Total liabilities and partners’ capital

   $ 559,108,000       $ 571,950,000   
  

 

 

    

 

 

 

The Company’s share of partners’ capital

   $ 43,173,000       $ 44,743,000   
  

 

 

    

 

 

 

 

21


CEDAR REALTY TRUST, INC.

Cedar/RioCan Joint Venture

Statements of Income

 

     Three months ended June 30,  
     2012     2011  

Revenues

   $ 16,012,000      $ 15,296,000   

Property operating and other expenses

     (1,403,000     (1,307,000

Management fees

     (463,000     (483,000

Real estate taxes

     (1,937,000     (1,819,000

Acquisition transaction costs

     —          (790,000

General and administrative

     (67,000     (61,000

Depreciation and amortization

     (5,056,000     (5,177,000

Interest and other non-operating expenses, net

     (4,219,000     (4,684,000
  

 

 

   

 

 

 

Net income

   $ 2,867,000      $ 975,000   
  

 

 

   

 

 

 

The Company’s share of net income

   $ 576,000      $ 195,000   
  

 

 

   

 

 

 
     Six months ended June 30,  
     2012     2011  

Revenues

   $ 31,944,000      $ 31,289,000   

Property operating and other expenses

     (2,968,000     (3,966,000

Management fees

     (1,052,000     (950,000

Real estate taxes

     (3,862,000     (3,551,000

Acquisition transaction costs

     —          (858,000

General and administrative

     (135,000     (132,000

Depreciation and amortization

     (10,170,000     (10,140,000

Interest and other non-operating expenses, net

     (8,654,000     (9,079,000
  

 

 

   

 

 

 

Net income

   $ 5,103,000      $ 2,613,000   
  

 

 

   

 

 

 

The Company’s share of net income

   $ 1,021,000      $ 523,000   
  

 

 

   

 

 

 

 

22


CEDAR REALTY TRUST, INC.

Cedar/RioCan Joint Venture

Real Estate Summary–As of June 30, 2012

 

     Percent                         Average              
     owned                  %      base rent per      Major Tenants (a)  

Property Description

   by Cedar      State    GLA      occupied      leased sq. ft.      Name    GLA  

Connecticut

                    

Montville Commons

     20%       CT      117,916         97.5%       $ 16.02       Stop & Shop      63,000   

Stop & Shop Plaza

     20%       CT      54,510         100.0%         16.69       Stop & Shop      54,510   
        

 

 

             

Total Connecticut

           172,426         98.3%         16.24         
        

 

 

             

Maryland

                    

Marlboro Crossroads

     20%       MD      67,975         100.0%         15.07       Giant Foods      60,951   
        

 

 

             

Massachusetts

                    

Franklin Village Plaza

     20%       MA      304,347         92.9%         20.20       Stop & Shop      75,000   
                  Marshalls      26,890   
                  Team Fitness      15,807   

Northwoods Crossing

     20%       MA      159,562         100.0%         11.72       BJ’s Wholesale Club      115,367   
                  Tractor Supply      19,097   

Raynham Commons

     20%       MA      176,609         97.7%         11.89       Shaw’s      60,748   
                  Marshall’s      25,752   
                  JoAnn Fabrics      15,775   
        

 

 

             

Total Massachusetts

           640,518         96.0%         15.67         
        

 

 

             

New Jersey

                    

Cross Keys Place

     20%       NJ      148,173         99.1%         16.19       Sports Authority      42,000   
                  Bed Bath & Beyond      35,005   
                  AC Moore      21,305   
                  Old Navy      19,234   
                  Petco      16,500   

Sunrise Plaza

     20%       NJ      261,060         97.6%         8.04       Home Depot      130,601   
                  Kohl’s Department Store      96,171   
                  Staples      20,388   
        

 

 

             

Total New Jersey

           409,233         98.1%         11.02         
        

 

 

             

Pennsylvania

                    

Blue Mountain Commons

     20%       PA      123,353         95.5%         25.32       Giant Foods      100,107   

Columbus Crossing

     20%       PA      142,166         100.0%         17.42       Super Fresh      61,506   
                  Old Navy      25,000   
                  AC Moore      22,000   

Creekview Plaza

     20%       PA      136,423         81.7%         16.53       Giant Foods      48,966   
                  L.A. Fitness      38,000   
                  Bed Bath & Beyond      25,000   

Exeter Commons

     20%       PA      361,321         97.9%         12.84       Lowe’s      171,069   
                  Giant Foods      84,115   
                  Staples      18,008   

Gettysburg Marketplace

     20%       PA      82,784         93.9%         20.25       Giant Foods      66,674   

Loyal Plaza

     20%       PA      293,825         98.6%         8.17       K-Mart      102,558   
                  Giant Foods      66,935   
                  Staples      20,555   

Monroe Marketplace

     20%       PA      340,930         96.2%         10.52       Giant Foods      79,500   
                  Kohl’s Department Store      68,430   
                  Dick’s Sporting Goods      51,119   
                  Best Buy      22,504   
                  Michael’s      20,649   
                  Pet Smart      18,156   

Northland Center

     20%       PA      111,496         99.1%         10.26       Giant Foods      68,311   

Pitney Road Plaza

     20%       PA      45,915         100.0%         19.75       Best Buy      45,915   

 

23


CEDAR REALTY TRUST, INC.

Cedar/RioCan Joint Venture (continued)

Real Estate Summary—As of June 30, 2012

 

     

Percent

owned

                 %      Average
base rent per
     Major Tenants (a)  

Property Description

   by Cedar      State    GLA      occupied      leased sq. ft.      Name    GLA  

Pennsylvania (continued)

                    

Sunset Crossing

     20%       PA      74,142         91.9%         14.45       Giant Foods      54,332   

Town Square Plaza

     20%       PA      127,678         100.0%         13.02       Giant Foods      75,727   
                  A.C. Moore      21,600   
                  Pet Smart      18,343   

York Marketplace

     20%       PA      305,410         96.5%         8.66       Lowe's      125,353   
                  Giant Foods      74,600   
                  Office Max      23,500   
                  Super Shoes      20,000   
        

 

 

             

Total Pennsylvania

           2,145,443         96.4%         12.81         
        

 

 

             

Virginia

                    

New River Valley

     20%       VA      164,663         96.1%         13.78       Best Buy      30,041   
                  Ross Stores      30,037   
                  Bed Bath & Beyond      24,152   
                  Staples      20,443   
                  Petsmart      17,878   
                  Old Navy      15,413   

Towne Crossing

     20%       VA      111,016         88.3%         15.07       Bed Bath & Beyond      40,000   
                  Michael's      20,000   
        

 

 

             

Total Virginia

           275,679         93.0%         14.27         
        

 

 

             

Total Cedar/RioCan Joint Venture

  

        3,711,274         96.4%       $ 13.41         
        

 

 

             

 

(a) Major tenants are determined as tenants with 15,000 or more sq.ft of GLA.

 

24


CEDAR REALTY TRUST, INC.

Cedar/RioCan Joint Venture

Summary of Outstanding Debt

As of June 30, 2012

 

Property

   Maturity
Date
     Interest
rate
    Stated
contract  amounts
 

Raynham Commons

     Mar 2014         5.6   $ 14,200,000   

Blue Mountain Commons

     Jul 2015         5.0     17,240,000   

Sunset Crossing

     Jul 2015         5.0     4,134,000   

Town Square Plaza

     Jul 2015         5.0     10,671,000   

Creekview Plaza

     Oct 2015         4.8     14,072,000   

Monroe Marketplace

     Oct 2015         4.8     22,520,000   

New River Valley

     Oct 2015         4.8     14,785,000   

Pitney Road Valley

     Oct 2015         4.8     5,931,000   

Sunrise Plaza

     Oct 2015         4.8     13,386,000   

Northwoods Crossing

     Feb 2016         6.4     13,991,000   

Franklin Village

     Aug 2016         4.1     43,370,000   

Columbus Crossing

     Mar 2017         4.5     16,154,000   

Stop & Shop Plaza

     Apr 2017         6.2     6,828,000   

Exeter Commons

     Aug 2020         5.3     29,214,000   

Cross Keys Place

     Dec 2020         5.1     14,298,000   

Gettysburg Marketplace

     Dec 2020         5.0     10,686,000   

Marlboro Crossroads

     Dec 2020         5.1     6,732,000   

Northland Center

     Dec 2020         5.0     6,164,000   

Towne Crossings

     Dec 2020         5.0     10,229,000   

York Marketplace

     Dec 2020         5.0     15,720,000   

Montville Commons

     Jan 2021         5.8     10,317,000   

Loyal Plaza

     Jul 2021         5.0     14,613,000   
       

 

 

 

Total mortgages at stated contract amounts

     5.3 years         5.0     315,255,000   
     [weighted average]     

Unamortized discount

          (360,000
       

 

 

 

Total mortgage debt (including unamortized discount)

        $ 314,895,000   
       

 

 

 

Cedar’s pro-rata share of total debt

        $ 62,979,000   
       

 

 

 

 

25


CEDAR REALTY TRUST, INC.

Cedar/RioCan Joint Venture

Summary of Debt Maturities

As of June 30, 2012

 

Maturity    Cedar pro-rata share of:      RioCan pro-rata share of:         

schedule

by year

   Scheduled
Amortization
     Balloon
Payments
     Total      Scheduled
Amortization
     Balloon
Payments
     Total      Cedar/RioCan
Total
 

2012

   $ 495,000       $ —         $ 495,000       $ 1,981,000       $ —         $ 1,981,000       $ 2,476,000   

2013

     1,026,000         —           1,026,000         4,105,000         —           4,105,000         5,131,000   

2014

     1,086,000         2,840,000         3,926,000         4,345,000         11,360,000         15,705,000         19,631,000   

2015

     1,017,000         19,411,000         20,428,000         4,067,000         77,642,000         81,709,000         102,137,000   

2016

     627,000         10,495,000         11,122,000         2,509,000         41,979,000         44,488,000         55,610,000   

2017

     491,000         4,135,000         4,626,000         1,963,000         16,540,000         18,503,000         23,129,000   

2018

     465,000         —           465,000         1,861,000         —           1,861,000         2,326,000   

2019

     503,000         —           503,000         2,014,000         —           2,014,000         2,517,000   

2020

     386,000         15,758,000         16,144,000         1,542,000         63,034,000         64,576,000         80,720,000   

2021

     —           4,244,000         4,244,000         —           16,974,000         16,974,000         21,218,000   

Thereafter

     —           —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 6,096,000       $ 56,883,000       $ 62,979,000       $ 24,387,000       $ 227,529,000       $ 251,916,000       $ 314,895,000   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

26


 

LOGO

Properties Held For Sale/Conveyance

 

27


CEDAR REALTY TRUST, INC.

Summary of Real Estate Held for Sale/Conveyance

As of June 30, 2012

 

                            Average              
          Percent           %     base rent per     

Major Tenants (a)

 

Property Description

   State    owned     GLA     occupied     leased sq. ft.     

Name

   GLA  

Ohio Discount Drug Mart Portfolio

                 

Gahanna Discount Drug Mart Plaza

   OH      100     48,667        82.3     13.90       Discount Drug Mart      24,592   

Westlake Discount Drug Mart Plaza

   OH      100     55,775        88.0     5.83       BG Storage      24,600   
               Discount Drug Mart      24,480   
       

 

 

           

Total Ohio Discount Drug Mart Portfolio

       104,442        85.3     9.46         
       

 

 

           

Single-Tenant/Triple-Net-Lease Properties

                 

McCormick Place

   OH      100     46,000        100.0     4.50       Sam Levin Furniture      46,000   
       

 

 

           

Malls

                 

Columbia Mall

   PA      100     348,358        87.2     3.77       Sears      64,264   
               Dunham Sports      61,178   
               Bon-Ton      45,000   
               J.C. Penny      34,076   

Shore Mall

   NJ      100     459,058        96.5     7.50       Boscov’s      172,200   
               Burlington Coat Factory      85,000   

The Point at Carlisle

   PA      100     182,859        87.7     6.69       Bon-Ton      59,925   
               Office Max      22,645   
               Dunham Sports      21,300   
               Dollar Tree      16,300   
       

 

 

           

Total Malls

          990,275        91.6     6.11         
       

 

 

           

Other Non-Core Assets

                 

Dunmore Shopping Center

   PA      100     101,000        88.6     2.87       Enyon Furniture Outlet      40,000   
               Big Lots      26,902   

Heritage Crossing

   PA      100 % (b)      28,098        100.0     23.59       Walgreens      14,748   

Oakhurst Plaza

   PA      100     111,869        59.0     13.84       Gold’s Gym      28,499   

Roosevelt II

   PA      100     180,088        0.0     —         Vacant      N/A   
       

 

 

           

Total Other Non-Core Assets

          421,055        43.6     9.99         
       

 

 

           

Homburg Joint Venture:

                 

Aston Center

   PA      20     55,000        100.0     25.45       Giant Foods      55,000   

Ayr Town Center

   PA      20     58,000        94.5     15.36       Giant Foods      52,400   

Parkway Plaza

   PA      20     111,028        94.6     14.41       Giant Foods      71,335   

Pennsboro Commons

   PA      20     109,784        84.6     14.21       Giant Foods      66,224   

Scott Town Center

   PA      20     67,933        100.0     17.14       Giant Foods      54,333   

Spring Meadow Shopping Center

   PA      20     70,350        100.0     20.23       Giant Foods      67,400   

Stonehedge Square

   PA      20     88,677        97.1     12.21       Nell’s Market      51,687   
       

 

 

           

Total Homburg Joint Venture

          560,772        94.9     16.38         
       

 

 

           

Total Properties Held for Sale

          2,122,544        82.8   $ 9.75         
       

 

 

           

Land Parcels Previously Acquired for Development

                 

Seven land parcels in Pennsylvania

   PA      100     82  acres           

Shore Mall

   NJ      100     50  acres           

Trindle Springs

   NY      100     2  acres           

Wyoming

   MI      100     12  acres           
       

 

 

           

Total Land Parcels Previously Acquired for Development

   

    146  acres           
       

 

 

           

 

(a) Major tenants are determined as tenants with 15,000 or more sq.ft. of GLA, tenants at single-tenant properties, or the largest tenant at a property.
(b) Although the ownership percentage for this joint venture is stated at 60%, the Company has included 100% of this joint venture’s result of operations in its-pro-rata calculations, based on the terms of the related joint venture agreement.

 

28


CEDAR REALTY TRUST, INC.

Properties Held for Sale/Conveyance—Summary of Outstanding Debt

As of June 30, 2012

 

Property

   Percent
Owned
    Maturity
Date
     Interest
rate (a)
    Stated
contract
amounts
 

Fixed-rate mortgages:

         

Roosevelt II

     100     Mar 2012         6.5 % (b)    $ 11,105,000   

Spring Meadow Shopping Center

     20     Nov 2014         5.9     11,936,000   

Ayr Town Center

     20     Jun 2015         5.6     6,859,000   

Scott Town Center

     20     Aug 2015         4.9     8,430,000   

Aston Center

     20     Nov 2015         5.9     12,040,000   

Pennsboro Commons

     20     Mar 2016         5.5     10,479,000   

Gahanna DDM

     100     Nov 2016         5.8 % (b)      4,839,000   

Westlake DDM

     100     Dec 2016         5.6 % (b)      3,109,000   

Parkway Plaza

     20     May 2017         5.5     14,287,000   

Stonehedge Square

     20     Jul 2017         6.2     8,700,000   

McCormick Place

     100     Aug 2017         6.1 % (b)      2,547,000   
         

 

 

 

Total fixed-rate mortgages

       3.9 years         5.8 %      94,331,000   
       [weighted average]     

Variable-rate mortgage:

         

Shore Mall

     100     Sept 2012         5.9     18,900,000   
         

 

 

 

Total mortgages at stated contract amounts

       3.2 years         5.8     113,231,000   
       [weighted average]     

Unamortized premium

            153,000   
         

 

 

 

Total mortgage debt (including unamortized premium)

          $ 113,384,000   
         

 

 

 

Cedar’s pro-rata share of total debt

          $ 55,078,000   
         

 

 

 

 

(a) For variable rate debt, rate in effect as of June 30, 2012.
(b) These properties are in the process of being conveyed to their respective lenders; until such conveyances are completed, interest is being recorded (but not paid) at approximately 500 basis points higher than the stated rates.

 

29


CEDAR REALTY TRUST, INC.

Properties Held for Sale/Conveyance—Summary of Debt Maturities

As of June 30, 2012

 

Maturity    Cedar pro-rata share of:      JV Partners pro-rata share of:         

schedule

by year

   Scheduled
Amortization
     Balloon
Payments
    Total      Scheduled
Amortization
     Balloon
Payments
     Total      Total  

2012

   $ 149,000       $ 30,005,000 (a)    $ 30,154,000       $ 521,000       $ —         $ 521,000       $ 30,675,000   

2013

     319,000         —          319,000         1,108,000         —           1,108,000         1,427,000   

2014

     327,000         2,267,000        2,594,000         1,128,000         9,069,000         10,197,000         12,791,000   

2015

     245,000         5,091,000        5,336,000         791,000         20,364,000         21,155,000         26,491,000   

2016

     868,000         9,137,000 (a)      10,005,000         299,000         7,730,000         8,029,000         18,034,000   

2017

     75,000         6,595,000 (a)      6,670,000         112,000         17,184,000         17,296,000         23,966,000   

2018

     —           —          —           —           —           —           —     

2019

     —           —          —           —           —           —           —     

2020

     —           —          —           —           —           —           —     

2021

     —           —          —           —           —           —           —     

Thereafter

     —           —          —           —           —           —           —     
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 1,983,000       $ 53,095,000      $ 55,078,000       $ 3,959,000       $ 54,347,000       $ 58,306,000       $ 113,384,000   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) Includes amounts relating to properties in the process of being conveyed to their respective lenders (2012- $11.1 million, 2016- $7.9 million and 2017- $2.5 million).

 

30


CEDAR REALTY TRUST, INC.

Portfolio Map Excluding Assets Held For Sale

As of June 30, 2012

 

LOGO

 

31


CEDAR REALTY TRUST, INC.

Non-GAAP Financial Disclosures

Use of Funds From Operations (“FFO”)

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 a REIT’s operating performance. The Company considers FFO 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.

The Company computes FFO in accordance with the “White Paper” 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 impairment charges, 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 Company also presents “Operating FFO”, which excludes certain items that are not indicative of the results provided by the Company’s operating portfolio and that affect the comparability of the Company’s period-over-period performance, such as management transition charges and employee termination costs, the accelerated write-off of deferred financing costs, mark-to-market adjustments related to share-based compensation, preferred stock redemption costs, acquisition transaction costs, and costs related to terminated projects.

Use of Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)

EBITDA is another widely-recognized non-GAAP financial measure that the Company believes, when considered with financial statements determined in accordance with GAAP, is useful to investors and lenders in understanding financial performance and providing a relevant basis for comparison among other companies, including REITs. While EBITDA should not be considered as a substitute for net income attributable to the Company’s common shareholders, net operating income, cash flow from operating activities, or other income or cash flow data prepared in accordance with GAAP, the Company believes that EBITDA may provide additional information with respect to the Company’s performance or ability to meet its future debt service requirements, capital expenditures and working capital requirements. The Company computes EBITDA by excluding interest expense and amortization of deferred financing costs, and depreciation and amortization, from income from continuing operations.

The Company also presents “Adjusted EBITDA”, which excludes certain items that are not indicative of the results provided by the Company’s operating portfolio and that affect the comparability of the Company’s period-over-period performance, such as mark-to-market adjustments relating to share-based compensation, management transition charges and employee termination costs, write-off of an investment in an unconsolidated joint venture, acquisition transaction costs, and costs related to terminated projects. The ratios of debt to Adjusted EBITDA, Adjusted EBITDA to interest expense, and Adjusted EBITDA to fixed charges are additional related measures of financial performance. Because EBITDA from one company to another excludes some, but not all, items that affect net income, the computations of EBITDA may vary from one company to another.

 

32