Exhibit 99.2
Supplemental Financial Information
September 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
September 30, 2012
(unaudited)
TABLE OF CONTENTS
| Financial Information |
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| 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 | |||
| Summary of Debt Maturities |
11 | |||
| Overview of Exit from Cedar/RioCan Joint Venture |
12 | |||
| Preferred Stock Activity |
13 | |||
| Portfolio Information |
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| Real Estate Summary |
14-16 | |||
| Leasing Activity |
17 | |||
| Tenant Concentration |
18 | |||
| Lease Expirations |
19 | |||
| Property Net Operating Income |
20 | |||
| Dispositions |
21 | |||
| Properties Held for Sale/Conveyance |
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| Real Estate Summary |
23 | |||
| Summary of Outstanding Debt |
24 | |||
| Non-GAAP Financial Disclosures |
25 | |||
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 September 30, 2012.
2
CEDAR REALTY TRUST, INC.
Consolidated Balance Sheets
| September 30, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Assets: |
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| Real estate |
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| Land |
$ | 268,913,000 | $ | 268,982,000 | ||||
| Buildings and improvements |
1,115,957,000 | 1,099,456,000 | ||||||
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| 1,384,870,000 | 1,368,438,000 | |||||||
| Less accumulated depreciation |
(229,830,000 | ) | (197,578,000 | ) | ||||
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| Real estate, net |
1,155,040,000 | 1,170,860,000 | ||||||
| Real estate held for sale/conveyance |
194,174,000 | 207,553,000 | ||||||
| Investment in Cedar/RioCan joint venture |
41,923,000 | 44,743,000 | ||||||
| Cash and cash equivalents |
7,416,000 | 12,070,000 | ||||||
| Restricted cash |
13,088,000 | 14,707,000 | ||||||
| Receivables |
25,414,000 | 26,127,000 | ||||||
| Other assets and deferred charges, net |
33,367,000 | 33,804,000 | ||||||
| Assets relating to real estate held for sale/conveyance |
— | 2,299,000 | ||||||
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|
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| Total assets |
$ | 1,470,422,000 | $ | 1,512,163,000 | ||||
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| Liabilities and equity: |
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| Mortgage loans payable |
$ | 560,033,000 | $ | 588,516,000 | ||||
| Mortgage loans payable—real estate held for sale/conveyance |
94,171,000 | 123,115,000 | ||||||
| Secured credit facilities |
93,000,000 | 166,317,000 | ||||||
| Accounts payable and accrued liabilities |
32,227,000 | 32,404,000 | ||||||
| Unamortized intangible lease liabilities |
31,113,000 | 35,017,000 | ||||||
| Liabilities relating to real estate held for sale/conveyance |
6,339,000 | 6,406,000 | ||||||
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| Total liabilities |
816,883,000 | 951,775,000 | ||||||
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| Noncontrolling interest—limited partners’ mezzanine OP Units |
801,000 | 4,616,000 | ||||||
| Commitments and contingencies |
— | — | ||||||
| Equity: |
||||||||
| Cedar Realty Trust, Inc. shareholders’ equity: |
||||||||
| Preferred stock |
275,294,000 | 158,575,000 | ||||||
| Common stock and other shareholders’ equity |
318,745,000 | 335,268,000 | ||||||
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| Total Cedar Realty Trust, Inc. shareholders’ equity |
594,039,000 | 493,843,000 | ||||||
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| Noncontrolling interests: |
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| Minority interests in consolidated joint ventures |
57,175,000 | 56,511,000 | ||||||
| Limited partners’ OP Units |
1,524,000 | 5,418,000 | ||||||
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| Total noncontrolling interests |
58,699,000 | 61,929,000 | ||||||
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| Total equity |
652,738,000 | 555,772,000 | ||||||
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| Total liabilities and equity |
$ | 1,470,422,000 | $ | 1,512,163,000 | ||||
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3
CEDAR REALTY TRUST, INC.
Consolidated Statements of Operations
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenues: |
||||||||||||||||
| Rents |
$ | 26,679,000 | $ | 26,465,000 | $ | 80,362,000 | $ | 78,039,000 | ||||||||
| Expense recoveries |
5,992,000 | 6,268,000 | 19,315,000 | 20,316,000 | ||||||||||||
| Other |
908,000 | 685,000 | 5,369,000 | 2,138,000 | ||||||||||||
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| Total revenues |
33,579,000 | 33,418,000 | 105,046,000 | 100,493,000 | ||||||||||||
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| Property operating expenses: |
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| Operating, maintenance and management |
5,304,000 | 6,410,000 | 17,190,000 | 20,687,000 | ||||||||||||
| Real estate and other property-related taxes |
4,402,000 | 4,147,000 | 13,057,000 | 12,307,000 | ||||||||||||
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| Total property operating expenses |
9,706,000 | 10,557,000 | 30,247,000 | 32,994,000 | ||||||||||||
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|
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| Property operating income |
23,873,000 | 22,861,000 | 74,799,000 | 67,499,000 | ||||||||||||
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| Other expenses: |
||||||||||||||||
| General and administrative |
3,637,000 | 2,899,000 | 10,999,000 | 7,770,000 | ||||||||||||
| Management transition charges and employee termination costs |
1,131,000 | — | 1,131,000 | 6,875,000 | ||||||||||||
| Impairment charges |
— | 7,419,000 | — | 7,419,000 | ||||||||||||
| Acquisition transaction costs and terminated projects |
— | — | — | 1,169,000 | ||||||||||||
| Depreciation and amortization |
9,282,000 | 9,794,000 | 34,804,000 | 27,824,000 | ||||||||||||
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| Total other expenses |
14,050,000 | 20,112,000 | 46,934,000 | 51,057,000 | ||||||||||||
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| Operating income |
9,823,000 | 2,749,000 | 27,865,000 | 16,442,000 | ||||||||||||
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| Non-operating income and expense: |
||||||||||||||||
| Interest expense |
(9,626,000 | ) | (10,468,000 | ) | (29,549,000 | ) | (31,136,000 | ) | ||||||||
| Accelerated write-off of deferred financing costs |
— | — | (2,607,000 | ) | — | |||||||||||
| Interest income |
63,000 | 41,000 | 187,000 | 216,000 | ||||||||||||
| Unconsolidated joint ventures: |
||||||||||||||||
| Equity in income |
411,000 | 327,000 | 1,432,000 | 1,152,000 | ||||||||||||
| Write-off of investment |
— | — | — | (7,961,000 | ) | |||||||||||
| Gain on sales |
402,000 | 130,000 | 481,000 | 130,000 | ||||||||||||
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|
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| Total non-operating income and expense |
(8,750,000 | ) | (9,970,000 | ) | (30,056,000 | ) | (37,599,000 | ) | ||||||||
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| Income (loss) from continuing operations |
1,073,000 | (7,221,000 | ) | (2,191,000 | ) | (21,157,000 | ) | |||||||||
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| Discontinued operations: |
||||||||||||||||
| Income from operations |
1,225,000 | 627,000 | 3,628,000 | 2,855,000 | ||||||||||||
| Impairment (charges)/reversals, net |
— | (64,671,000 | ) | 1,138,000 | (87,287,000 | ) | ||||||||||
| Gain on sales |
— | — | 750,000 | 502,000 | ||||||||||||
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| Total discontinued operations |
1,225,000 | (64,044,000 | ) | 5,516,000 | (83,930,000 | ) | ||||||||||
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| Net income (loss) |
2,298,000 | (71,265,000 | ) | 3,325,000 | (105,087,000 | ) | ||||||||||
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| Less, net (income) loss attributable to noncontrolling interests: |
||||||||||||||||
| Minority interests in consolidated joint ventures |
(2,564,000 | ) | 3,285,000 | (4,272,000 | ) | 3,332,000 | ||||||||||
| Limited partners’ interest in Operating Partnership |
17,000 | 1,455,000 | 114,000 | 2,294,000 | ||||||||||||
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| Total net (income) loss attributable to noncontrolling interests |
(2,547,000 | ) | 4,740,000 | (4,158,000 | ) | 5,626,000 | ||||||||||
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| Net (loss) attributable to Cedar Realty Trust, Inc. |
(249,000 | ) | (66,525,000 | ) | (833,000 | ) | (99,461,000 | ) | ||||||||
| Preferred stock dividends |
(3,877,000 | ) | (3,580,000 | ) | (11,015,000 | ) | (10,621,000 | ) | ||||||||
| Preferred stock redemption costs |
(173,000 | ) | — | (555,000 | ) | — | ||||||||||
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| Net (loss) attributable to common shareholders |
$ | (4,299,000 | ) | $ | (70,105,000 | ) | $ | (12,403,000 | ) | $ | (110,082,000 | ) | ||||
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| Per common share attributable to common shareholders (basic and diluted): |
||||||||||||||||
| Continuing operations |
$ | (0.05 | ) | $ | (0.16 | ) | $ | (0.20 | ) | $ | (0.48 | ) | ||||
| Discontinued operations |
(0.02 | ) | (0.89 | ) | 0.01 | (1.19 | ) | |||||||||
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| $ | (0.07 | ) | $ | (1.05 | ) | $ | (0.19 | ) | $ | (1.67 | ) | |||||
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| Weighted average number of common shares—basic and diluted |
68,232,000 | 66,800,000 | 67,932,000 | 66,253,000 | ||||||||||||
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4
CEDAR REALTY TRUST, INC.
Supporting Schedules to Consolidated Statements
Balance Sheets Detail
| September 30, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Construction in process (included in buildings and improvements) |
$ | 7,601,000 | $ | 24,475,000 | ||||
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| Receivables |
||||||||
| Rents and other tenant receivables, net |
$ | 5,827,000 | $ | 6,882,000 | ||||
| Straight-line rents |
14,467,000 | 13,435,000 | ||||||
| Other |
5,120,000 | 5,810,000 | ||||||
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| $ | 25,414,000 | $ | 26,127,000 | |||||
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| Other assets and deferred charges, net |
||||||||
| Lease origination costs |
$ | 14,100,000 | $ | 14,266,000 | ||||
| Financing costs |
5,815,000 | 6,249,000 | ||||||
| Prepaid expenses |
9,384,000 | 5,857,000 | ||||||
| Investments related to deferred compensation liabilities |
434,000 | 3,562,000 | ||||||
| Property and other deposits |
65,000 | 1,430,000 | ||||||
| Leasehold improvements, furniture and fixtures |
1,223,000 | 1,035,000 | ||||||
| Other |
2,346,000 | 1,405,000 | ||||||
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| $ | 33,367,000 | $ | 33,804,000 | |||||
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| Minority interests in consolidated joint ventures |
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| Operating joint venture properties: |
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| New London Mall and San Souci Plaza |
5,772,000 | 6,805,000 | ||||||
| Upland Square |
1,048,000 | 1,048,000 | ||||||
| Homburg (two properties) (a) |
13,730,000 | 13,909,000 | ||||||
| Held-for-sale joint venture properties: |
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| Homburg (seven properties) (b) |
36,706,000 | 34,774,000 | ||||||
| CVS at Naugatuck |
— | 56,000 | ||||||
| Heritage Crossing |
(81,000 | ) | (81,000 | ) | ||||
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| $ | 57,175,000 | $ | 56,511,000 | |||||
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| (a) | Remaining 80% ownership interests acquired on October 12, 2012 |
| (b) | Properties sold on October 12, 2012. |
5
CEDAR REALTY TRUST, INC.
Supporting Schedules to Consolidated Statements
Statements of Operations Detail
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Rents |
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| Base rents |
$ | 24,975,000 | $ | 24,086,000 | $ | 74,642,000 | $ | 72,097,000 | ||||||||
| Percentage rent |
314,000 | 302,000 | 778,000 | 687,000 | ||||||||||||
| Straight-line rents |
216,000 | 187,000 | 778,000 | 932,000 | ||||||||||||
| Amortization of intangible lease liabilities |
1,174,000 | 1,890,000 | 4,164,000 | 4,323,000 | ||||||||||||
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| $ | 26,679,000 | $ | 26,465,000 | $ | 80,362,000 | $ | 78,039,000 | |||||||||
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| Other revenues |
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| Lease termination fees |
$ | — | $ | — | $ | 3,029,000 | $ | — | ||||||||
| RioCan management fees (a) |
859,000 | 583,000 | 2,136,000 | 1,569,000 | ||||||||||||
| Miscellaneous |
49,000 | 102,000 | 204,000 | 569,000 | ||||||||||||
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| $ | 908,000 | $ | 685,000 | $ | 5,369,000 | $ | 2,138,000 | |||||||||
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| Equity in income of unconsolidated joint ventures: |
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| Cedar/RioCan (a) |
$ | 411,000 | $ | 327,000 | $ | 1,432,000 | $ | 829,000 | ||||||||
| Philadelphia redevelopment project |
— | — | — | 323,000 | ||||||||||||
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| $ | 411,000 | $ | 327,000 | $ | 1,432,000 | $ | 1,152,000 | |||||||||
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| Net (income) loss attributable to noncontrolling interests—minority interests in consolidated joint ventures |
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| Operating joint venture properties: |
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| New London Mall and San Souci Plaza |
$ | 97,000 | $ | 127,000 | $ | 518,000 | $ | 451,000 | ||||||||
| Homburg (two properties) (b) |
22,000 | (82,000 | ) | (216,000 | ) | (306,000 | ) | |||||||||
| Held-for-sale joint venture properties: |
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| Homburg (seven properties) (c) |
(2,683,000 | ) | 1,643,000 | (4,250,000 | ) | 1,169,000 | ||||||||||
| CVS at Naugatuck |
— | (5,000 | ) | (324,000 | ) | (15,000 | ) | |||||||||
| Columbia Mall |
— | 1,602,000 | — | 2,033,000 | ||||||||||||
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| $ | (2,564,000 | ) | $ | 3,285,000 | $ | (4,272,000 | ) | $ | 3,332,000 | |||||||
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| (a) | See page 12 for information relating to the Company’s exit from the Cedar/RioCan joint venture. |
| (b) | Remaining 80% ownership interests acquired on October 12, 2012. |
| (c) | Properties sold on October 12, 2012. |
6
CEDAR REALTY TRUST, INC.
Funds From Operations and Additional Disclosures
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Net (loss) attributable to common shareholders |
$ | (4,299,000 | ) | $ | (70,105,000 | ) | $ | (12,403,000 | ) | $ | (110,082,000 | ) | ||||
| Real estate depreciation and amortization |
9,185,000 | 11,380,000 | 34,577,000 | 32,729,000 | ||||||||||||
| Limited partners’ interest |
(17,000 | ) | (1,455,000 | ) | (114,000 | ) | (2,294,000 | ) | ||||||||
| Impairment charges/ (reversals) |
— | 72,114,000 | (1,138,000 | ) | 102,647,000 | |||||||||||
| Gain on sales |
(402,000 | ) | — | (1,231,000 | ) | (502,000 | ) | |||||||||
| Consolidated minority interest: |
||||||||||||||||
| Share of income (loss) |
2,564,000 | (3,285,000 | ) | 4,272,000 | (3,332,000 | ) | ||||||||||
| Share of FFO |
(1,287,000 | ) | (1,462,000 | ) | (4,078,000 | ) | (4,442,000 | ) | ||||||||
| Unconsolidated joint ventures: |
||||||||||||||||
| Share of income |
(411,000 | ) | (327,000 | ) | (1,432,000 | ) | (1,152,000 | ) | ||||||||
| Share of FFO |
1,433,000 | 1,374,000 | 4,488,000 | 4,438,000 | ||||||||||||
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| Funds From Operations (“FFO”) |
6,766,000 | 8,234,000 | 22,941,000 | 18,010,000 | ||||||||||||
| Adjustments for items affecting comparability: |
||||||||||||||||
| Management transition charges and employee termination costs |
1,131,000 | — | 1,131,000 | 6,875,000 | ||||||||||||
| Accelerated write-off of deferred financing costs |
— | — | 2,607,000 | — | ||||||||||||
| Share-based compensation mark-to-market adjustments |
— | (39,000 | ) | 10,000 | (740,000 | ) | ||||||||||
| Preferred stock redemption costs |
173,000 | — | 555,000 | — | ||||||||||||
| Acquisition transaction costs and terminated projects, including Company share from the Cedar/RioCan joint venture |
193,000 | 11,000 | 193,000 | 1,498,000 | ||||||||||||
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| Operating Funds From Operations (“Operating FFO”) |
$ | 8,263,000 | $ | 8,206,000 | $ | 27,437,000 | $ | 25,643,000 | ||||||||
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| FFO per diluted share: |
$ | 0.09 | $ | 0.12 | $ | 0.32 | $ | 0.26 | ||||||||
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| Operating FFO per diluted share: |
$ | 0.11 | $ | 0.12 | $ | 0.38 | $ | 0.37 | ||||||||
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| Weighted average number of diluted common shares: |
||||||||||||||||
| Common shares |
71,793,000 | 69,759,000 | 71,161,000 | 68,368,000 | ||||||||||||
| OP Units |
281,000 | 1,415,000 | 518,000 | 1,415,000 | ||||||||||||
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|||||||||
| 72,074,000 | 71,174,000 | 71,679,000 | 69,783,000 | |||||||||||||
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| Additional Disclosures (Pro-Rata Share): |
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| Straight-line rents |
$ | 381,000 | $ | 313,000 | $ | 1,066,000 | $ | 1,282,000 | ||||||||
| Amortization of intangible lease liabilities |
1,251,000 | 2,097,000 | 4,456,000 | 5,007,000 | ||||||||||||
| Lease termination income |
— | — | 3,029,000 | — | ||||||||||||
| Non-real estate amortization |
569,000 | 1,172,000 | 1,926,000 | 3,414,000 | ||||||||||||
| Share-based compensation other than mark-to-market adjustments |
1,149,000 | 978,000 | 2,885,000 | 4,789,000 | ||||||||||||
| Maintenance capital expenditures |
1,028,000 | 1,123,000 | 3,163,000 | 2,176,000 | ||||||||||||
| Development and redevelopment capital expenditures |
6,285,000 | 12,911,000 | 14,300,000 | 25,461,000 | ||||||||||||
| Capitalized interest and financing costs |
255,000 | 895,000 | 1,000,000 | 2,036,000 | ||||||||||||
7
CEDAR REALTY TRUST, INC.
Earnings Before Interest, Taxes, Depreciation and Amortization
| Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| EBITDA Calculation |
||||||||||||||||
| Income (loss) from continuing operations |
$ | 1,073,000 | $ | (7,221,000 | ) | $ | (2,191,000 | ) | $ | (21,157,000 | ) | |||||
| Add (deduct): |
||||||||||||||||
| Interest expense |
9,626,000 | 10,468,000 | 29,549,000 | 31,136,000 | ||||||||||||
| Accelerated write-off of deferred financing costs |
— | — | 2,607,000 | — | ||||||||||||
| Depreciation and amortization |
9,282,000 | 9,794,000 | 34,804,000 | 27,824,000 | ||||||||||||
| Minority interests share of consolidated joint venture EBITDA |
(2,973,000 | ) | (3,204,000 | ) | (9,086,000 | ) | (9,560,000 | ) | ||||||||
| Discontinued operations: |
||||||||||||||||
| Income from operations |
1,225,000 | 627,000 | 3,628,000 | 2,855,000 | ||||||||||||
| Interest expense and amortization of financing costs, net |
1,776,000 | 2,476,000 | 5,622,000 | 6,885,000 | ||||||||||||
| Depreciation and amortization |
— | 1,652,000 | 21,000 | 5,256,000 | ||||||||||||
| Pro-rata share attributable to Cedar/RioCan joint venture: |
||||||||||||||||
| Depreciation and amortization |
1,021,000 | 1,068,000 | 3,055,000 | 3,096,000 | ||||||||||||
| Interest expense |
801,000 | 968,000 | 2,532,000 | 2,786,000 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
21,831,000 | 16,628,000 | 70,541,000 | 49,121,000 | ||||||||||||
| Adjustments for items affecting comparability: |
||||||||||||||||
| Share-based compensation mark-to-market adjustments |
— | (39,000 | ) | 10,000 | (740,000 | ) | ||||||||||
| Management transition charges and employee termination costs |
1,131,000 | — | 1,131,000 | 6,875,000 | ||||||||||||
| Impairment charges and write-off of investment in unconsolidated joint venture |
— | 7,419,000 | — | 15,380,000 | ||||||||||||
| Acquisition transaction costs and terminated projects, including Company share from the Cedar/RioCan joint venture |
193,000 | 11,000 | 193,000 | 1,498,000 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA |
$ | 23,155,000 | $ | 24,019,000 | $ | 71,875,000 | $ | 72,134,000 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Pro-rata share of outstanding debt (a) |
$ | 697,597,000 | $ | 854,337,000 | $ | 697,597,000 | $ | 854,337,000 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Fixed charges (a) |
||||||||||||||||
| Interest expense |
$ | 11,178,000 | $ | 12,671,000 | $ | 34,406,000 | $ | 36,642,000 | ||||||||
| Interest expense—consolidated minority interests share |
(1,643,000 | ) | (1,675,000 | ) | (4,931,000 | ) | (4,983,000 | ) | ||||||||
| Interest expense—Cedar/RioCan joint venture |
801,000 | 968,000 | 2,532,000 | 2,786,000 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Interest Expense |
10,336,000 | 11,964,000 | 32,007,000 | 34,445,000 | ||||||||||||
| Preferred stock dividends |
3,877,000 | 3,580,000 | 11,015,000 | 10,621,000 | ||||||||||||
| Pro-rata share of scheduled mortgage repayments |
2,471,000 | 2,237,000 | 7,687,000 | 6,554,000 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Fixed charges |
$ | 16,684,000 | $ | 17,781,000 | $ | 50,709,000 | $ | 51,620,000 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Debt and Coverage Ratios (b) |
||||||||||||||||
| Debt to Adjusted EBITDA (c) |
8.5 | x | 8.7 | x | 8.7 | x | 8.9 | x | ||||||||
| Interest coverage ratio (Based on Adjusted EBITDA) |
2.2 | x | 2.0 | x | 2.2 | x | 2.1 | x | ||||||||
| Fixed charge coverage ratio (Based on Adjusted EBITDA) |
1.4 | x | 1.4 | x | 1.4 | x | 1.4 | 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, (ii) for the 2012 periods, the approximate $114.1 million interim reduction in the outstanding balance under the Company’s Credit Facility arising from the sale in September 2012 of Series B Preferred Stock, the proceeds of which were used for redemptions of Series A Preferred Stock in October 2012, and (iii) 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 September 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 | % | $ | 8,218,000 | |||||||||
| Fort Washington |
100 | % | Jan 2013 | 5.4 | % | 5,431,000 | ||||||||||
| Fairview Plaza |
100 | % | Feb 2013 | 5.7 | % | 5,163,000 | ||||||||||
| Academy Plaza |
100 | % | Mar 2013 | 7.3 | % | 8,701,000 | ||||||||||
| General Booth Plaza |
100 | % | Aug 2013 | 6.1 | % | 4,995,000 | ||||||||||
| Kempsville Crossing |
100 | % | Aug 2013 | 6.1 | % | 5,634,000 | ||||||||||
| Port Richmond Village |
100 | % | Aug 2013 | 6.5 | % | 13,943,000 | ||||||||||
| Smithfield Plaza |
100 | % | Aug 2013 | 6.1 | % | 3,220,000 | ||||||||||
| Suffolk Plaza |
100 | % | Aug 2013 | 6.1 | % | 4,220,000 | ||||||||||
| Virginia Little Creek |
100 | % | Aug 2013 | 6.1 | % | 4,517,000 | ||||||||||
| Timpany Plaza |
100 | % | Jan 2014 | 6.1 | % | 7,795,000 | ||||||||||
| Trexler Mall |
100 | % | May 2014 | 5.5 | % | 20,236,000 | ||||||||||
| Coliseum Marketplace |
100 | % | Jul 2014 | 6.1 | % | 11,338,000 | ||||||||||
| Fieldstone Marketplace |
20 | %(b) | Jul 2014 | 6.0 | % | 17,442,000 | ||||||||||
| King’s Plaza |
100 | % | Jul 2014 | 6.0 | % | 7,428,000 | ||||||||||
| Liberty Marketplace |
100 | % | Jul 2014 | 6.1 | % | 8,511,000 | ||||||||||
| Yorktowne Plaza |
100 | % | Jul 2014 | 6.0 | % | 19,431,000 | ||||||||||
| Mechanicsburg Giant |
100 | % | Nov 2014 | 5.5 | % | 8,785,000 | ||||||||||
| Elmhurst Square Shopping Center |
100 | % | Dec 2014 | 5.4 | % | 3,831,000 | ||||||||||
| New London Mall |
40 | % | Apr 2015 | 4.9 | % | 27,365,000 | ||||||||||
| Carbondale Plaza |
100 | % | May 2015 | 6.4 | % | 4,794,000 | ||||||||||
| Oak Ridge Shopping Center |
100 | % | May 2015 | 5.5 | % | 3,308,000 | ||||||||||
| Pine Grove Plaza |
100 | % | Sep 2015 | 5.0 | % | 5,486,000 | ||||||||||
| Groton Shopping Center |
100 | % | Oct 2015 | 5.3 | % | 11,524,000 | ||||||||||
| Southington Shopping Center |
100 | % | Nov 2015 | 5.1 | % | 5,492,000 | ||||||||||
| Jordan Lane |
100 | % | Dec 2015 | 5.5 | % | 12,448,000 | ||||||||||
| Oakland Mills |
100 | % | Jan 2016 | 5.5 | % | 4,680,000 | ||||||||||
| Smithfield Plaza |
100 | % | May 2016 | 6.2 | % | 6,823,000 | ||||||||||
| West Bridgewater |
100 | % | Sep 2016 | 6.2 | % | 10,617,000 | ||||||||||
| Carman’s Plaza |
100 | % | Oct 2016 | 6.2 | % | 33,500,000 | ||||||||||
| Hamburg Commons |
100 | % | Oct 2016 | 6.1 | % | 4,950,000 | ||||||||||
| Meadows Marketplace |
20 | %(b) | Nov 2016 | 5.6 | % | 9,870,000 | ||||||||||
| San Souci Plaza |
40 | % | Dec 2016 | 6.2 | % | 27,200,000 | ||||||||||
| Camp Hill Shopping Center |
100 | % | Jan 2017 | 5.5 | % | 64,462,000 | ||||||||||
| Golden Triangle |
100 | % | Feb 2018 | 6.0 | % | 20,138,000 | ||||||||||
| East Chestnut |
100 | % | Apr 2018 | 7.4 | % | 1,561,000 | ||||||||||
| Gold Star Plaza |
100 | % | May 2019 | 7.3 | % | 1,781,000 | ||||||||||
| Newport Plaza |
100 | % | Jan 2020 | 5.9 | % | 5,382,000 | ||||||||||
| Halifax Plaza |
100 | % | Apr 2020 | 6.3 | % | 4,115,000 | ||||||||||
| Swede Square |
100 | % | Nov 2020 | 5.5 | % | 10,348,000 | ||||||||||
| Colonial Commons |
100 | % | Feb 2021 | 5.5 | % | 27,391,000 | ||||||||||
| Townfair Center |
100 | % | Jul 2021 | 5.2 | % | 16,131,000 | ||||||||||
| Virginia Little Creek |
100 | % | Sep 2021 | 8.0 | % | 328,000 | ||||||||||
| Metro Square |
100 | % | Nov 2029 | 7.5 | % | 8,579,000 | ||||||||||
|
|
|
|||||||||||||||
| Total Fixed-Rate Mortgages |
3.8 years | 5.8 | % | $ | 497,112,000 | |||||||||||
|
|
|
|||||||||||||||
| weighted average | ||||||||||||||||
9
CEDAR REALTY TRUST, INC.
Summary of Outstanding Debt (Continued)
As of September 30, 2012
| Property |
Percent Owned |
Maturity Date |
Interest rate (a) |
Stated contract amounts |
||||||||||||
| Variable-rate mortgage: |
||||||||||||||||
| Upland Square |
100 | %(c) | Oct 2013 | 3.0 | % | 63,106,000 | ||||||||||
|
|
|
|||||||||||||||
| Total mortgages at stated contract amounts |
3.5 years | 5.5 | % | 560,218,000 | ||||||||||||
| weighted average | ||||||||||||||||
| Unamortized discount/premium |
(185,000 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| Total mortgage debt (including unamortized discount/premium) |
560,033,000 | |||||||||||||||
|
|
|
|||||||||||||||
| Corporate Credit Facility: |
||||||||||||||||
| Revolving facility (d) |
Jan 2015 | 3.0 | % | 18,000,000 | ||||||||||||
| Term loan |
Jan 2016 | 3.0 | % | 75,000,000 | ||||||||||||
|
|
|
|||||||||||||||
| 3.1 years | 3.0 | % | 93,000,000 | |||||||||||||
|
|
|
|||||||||||||||
| weighted average | ||||||||||||||||
| Total Consolidated Debt (Excluding Held for Sale/Conveyance Mortgage Debt) |
3.4 years | 5.1 | % | $ | 653,033,000 | |||||||||||
|
|
|
|||||||||||||||
| weighted average | ||||||||||||||||
| Pro-rata share of total debt reconciliation: |
||||||||||||||||
| Total consolidated debt (excluding held for sale/conveyance mortgage debt) |
$ | 653,033,000 | ||||||||||||||
| Less pro-rata share attributable to consolidated joint venture minority interests |
(54,270,000 | ) | ||||||||||||||
| Plus pro-rata share attributable to the unconsolidated Cedar/RioCan joint venture (e) |
62,718,000 | |||||||||||||||
| Plus pro-rata share attributable to properties held for sale/conveyance (f) |
36,116,000 | |||||||||||||||
|
|
|
|||||||||||||||
| Pro-rata share of total debt |
$ | 697,597,000 | ||||||||||||||
|
|
|
|||||||||||||||
| Pro-rata share of fixed debt |
$ | 541,491,000 | ||||||||||||||
| Pro-rata share of variable debt |
156,106,000 | |||||||||||||||
|
|
|
|||||||||||||||
| Pro-rata share of total debt |
$ | 697,597,000 | ||||||||||||||
|
|
|
|||||||||||||||
| Percentage of pro-rata fixed debt |
77.6 | % | ||||||||||||||
| Percentage of pro-rata variable debt |
22.4 | % | ||||||||||||||
|
|
|
|||||||||||||||
| 100.0 | % | |||||||||||||||
|
|
|
|||||||||||||||
| (a) | For variable rate debt, rate in effect as of September 30, 2012. |
| (b) | Remaining 80% ownership interests acquired on October 12, 2012. |
| (c) | Although the ownership percentage 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. |
| (d) | In October 2012, the Company redeemed 4.5 million shares of its Series A Preferred Stock for a total cash outlay of $114.1 million which was drawn on the Company’s Credit Facility. |
| (e) | See page 12 for information relating to the Company’s exit from the Cedar/RioCan joint venture. In that connection, the Company acquired a 100% ownership interest in Franklin Village Plaza which, as of September 30, 2012, had a property specific mortgage with a balance of $43.1 million, bearing interest at a fixed rate of 4.1% per annum, and maturing in August 2016. |
| (f) | See “Summary of Outstanding Debt—Held for Sale Properties.” |
10
CEDAR REALTY TRUST, INC.
Summary of Debt Maturities
As of September 30, 2012
| Consolidated, Excluding Mortgages on Properties Held for Sale |
||||||||||||||||||||||||||||||||
| Maturity | Cedar pro-rata share of: | JV Partners pro-rata share of: | ||||||||||||||||||||||||||||||
| schedule by year |
Scheduled Amortization |
Balloon Payments |
Credit Facility |
Total | Scheduled Amortization |
Balloon Payments |
Total | Total | ||||||||||||||||||||||||
| 2012 |
$ | 2,221,000 | $ | 10,695,000 | $ | — | $ | 12,916,000 | $ | 76,000 | $ | — | $ | 76,000 | $ | 12,992,000 | ||||||||||||||||
| 2013 |
7,906,000 | 114,607,000 | (a) | — | 122,513,000 | 302,000 | — | 302,000 | 122,815,000 | |||||||||||||||||||||||
| 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 | 18,000,000 | (b) (c) | 78,777,000 | 125,000 | 16,419,000 | 16,544,000 | 95,321,000 | |||||||||||||||||||||||
| 2016 |
3,707,000 | 71,520,000 | 75,000,000 | (b) | 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 |
4,974,000 | 472,000 | — | 5,446,000 | — | — | — | 5,446,000 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 36,995,000 | $ | 468,768,000 | $ | 93,000,000 | $ | 598,763,000 | $ | 804,000 | $ | 53,466,000 | $ | 54,270,000 | $ | 653,033,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (a) | Includes $59.7 million of property-specific construction financing, due in October 2013, subject to a one-year extension option. |
| (b) | Each of the amounts due in 2015 and 2016 are subject to one-year extension options. |
| (c) | In October 2012, the Company redeemed 4.5 million shares of its Series A Preferred Stock for a total cash outlay of $114.1 million which was drawn on the Company’s Credit Facility. |
11
CEDAR REALTY TRUST, INC.
Overview of Exit from Cedar/RioCan Joint Venture
On October 10, 2012, the Company exited the 20% Cedar / 80% RioCan joint venture that owned 22 retail shopping-center properties. Pursuant to the underlying agreements, the Company exchanged its 20% interest in the joint venture for (a) a 100% ownership interest in Franklin Village Plaza and (b) approximately $40.0 million in cash. The annualized impact of the transaction is summarized below.
| Cash Earnings Increase / (Decrease) |
||||
| Cash Property Operating Income (“POI”) |
||||
| Acquisition of Franklin Village Plaza (80% share) |
$ | 4,000,000 | ||
| Disposition of 21 assets (20% share) |
(7,700,000 | ) | ||
|
|
|
|||
| Cash POI decrease, net |
(3,700,000 | ) | ||
|
|
|
|||
| Net Interest Savings / Net Debt Reductions | Stated Interest Rate |
Net Debt Reductions |
||||||||||
| Franklin Village Plaza (80% share) |
(1,400,000 | ) | 4.1 | % | $ | 34,500,000 | ||||||
| Disposition of 21 assets (20% share) |
2,800,000 | 5.2 | % | (54,200,000 | ) | |||||||
| Interest savings on mortgage prepayments (a) |
2,600,000 | 6.5 | % | (40,000,000 | ) | |||||||
|
|
|
|
|
|||||||||
| Total net interest savings / net debt reductions |
4,000,000 | $ | (59,700,000 | ) | ||||||||
|
|
|
|
|
|||||||||
| Reduction in joint venture management fees (b) |
(2,500,000 | ) | ||||||||||
| Cost reduction measures ($2.0-$2.5 million) (c) |
2,250,000 | |||||||||||
|
|
|
|||||||||||
| Net impact of exiting Cedar/RioCan joint venture |
$ | 50,000 | ||||||||||
|
|
|
|||||||||||
| (a) | Includes prepayment, without penalty, of mortgages at Academy Plaza, General Booth Plaza, Kempsville Crossing, Port Richmond Village, Smithfield Plaza and Virginia Little Creek, planned for the latter part of 2012 through February 1, 2013. |
| (b) | The Company will continue to manage the properties acquired by RioCan subject to a management agreement which will terminate effective January 31, 2013. |
| (c) | Cost reduction measures being implemented over the next twelve months. |
12
CEDAR REALTY TRUST, INC.
Preferred Stock Activity
| Series A 8.875% | Series B 7.25% (a) | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Balance, December 31, 2011 |
6,400,000 | $ | 158,575,000 | — | — | |||||||||||
| Initial Series B Offering and Series A Redemption |
(360,000 | ) | (8,920,000 | ) | 400,000 | 9,200,000 | ||||||||||
| “At-The-Market” Series B Sales and Open Market Series A Purchases |
(127,000 | ) | (3,148,000 | ) | 199,000 | 4,581,000 | ||||||||||
| Follow-on Series B Offering |
— | — | 4,830,000 | 115,006,000 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Balance, September 30, 2012 |
5,913,000 | 146,507,000 | 5,429,000 | 128,787,000 | ||||||||||||
| Series A Redemptions (b) |
(4,505,000 | ) | (111,622,000 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Balance, October 15, 2012 |
1,408,000 | $ | 34,885,000 | 5,429,000 | 128,787,000 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (a) | Series B issued in 2012 at a discount for a weighted average yield of 7.64%. |
| (b) | Series A redemptions occurred on October 11 and October 15, 2012. |
13
CEDAR REALTY TRUST, INC.
Real Estate Summary
As of September 30, 2012
| Percent | Year | % | Average 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 | 117,186 | 84.3 | % | $ | 11.66 | 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 | 94.2 | % | 14.18 | 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 | 99.3 | % | 6.77 | Wal-Mart | 95,482 | ||||||||||||||||||||
| NAMCO | 20,000 | |||||||||||||||||||||||||||||
| The Brickyard |
CT | 100 | % | 2004 | 249,200 | 68.2 | % | 7.58 | Home Depot | 103,003 | ||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
| Total Connecticut |
1,053,351 | 83.4 | % | 10.09 | ||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
| 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 | % | 18.87 | Shoppers Food Warehouse | 58,668 | ||||||||||||||||||||
| Oakland Mills |
MD | 100 | % | 2005 | 58,224 | 100.0 | % | 13.60 | Food Lion | 43,470 | ||||||||||||||||||||
| San Souci Plaza |
MD | 40 | % | 2009 | 264,134 | 81.9 | % | 9.42 | Shoppers Food Warehouse | 61,466 | ||||||||||||||||||||
| Marshalls | 27,000 | |||||||||||||||||||||||||||||
| Maximum Health and Fitness | 15,612 | |||||||||||||||||||||||||||||
| St. James Square |
MD | 100 | % | 2005 | 39,903 | 100.0 | % | 11.42 | 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 | 92.1 | % | 13.31 | Food Lion | 37,692 | ||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
| Total Maryland |
835,972 | 91.1 | % | 10.34 | ||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
| Massachusetts |
||||||||||||||||||||||||||||||
| Fieldstone Marketplace |
MA | 20 | % (b) | 2005 | 193,970 | 95.8 | % | 11.23 | Shaw’s | 68,000 | ||||||||||||||||||||
| Flagship Cinema | 41,975 | |||||||||||||||||||||||||||||
| New Bedford Wine and Spirits | 15,180 | |||||||||||||||||||||||||||||
| Kings Plaza |
MA | 100 | % | 2007 | 168,243 | 92.7 | % | 6.15 | 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 | % | 12.78 | Stop & Shop | 74,977 | ||||||||||||||||||||
| Timpany Plaza |
MA | 100 | % | 2007 | 183,775 | 97.0 | % | 6.83 | 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 | 94.3 | % | 9.04 | ||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
| New Jersey |
||||||||||||||||||||||||||||||
| Carll’s Corner |
NJ | 100 | % | 2007 | 129,582 | 85.4 | % | 8.84 | Acme Markets | 55,000 | ||||||||||||||||||||
| Peebles | 18,858 | |||||||||||||||||||||||||||||
| Pine Grove Plaza |
NJ | 100 | % | 2003 | 86,089 | 84.7 | % | 10.86 | Peebles | 24,963 | ||||||||||||||||||||
| Washington Center Shoppes |
NJ | 100 | % | 2001 | 157,394 | 94.3 | % | 8.88 | Acme Markets | 66,046 | ||||||||||||||||||||
| Planet Fitness | 20,742 | |||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
| Total New Jersey |
373,065 | 89.0 | % | 9.30 | ||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
14
CEDAR REALTY TRUST, INC.
Real Estate Summary (Continued)
As of September 30, 2012
| Percent | Year | % | Average 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 | 194,082 | 91.8 | % | 17.09 | 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 | 82.2 | % | 13.66 | Acme Markets | 50,918 | ||||||||||||||||||||
| Camp Hill |
PA | 100 | % | 2002 | 470,117 | 99.3 | % | 13.56 | 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 | 120,689 | 92.2 | % | 6.65 | 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 | 466,233 | 85.6 | % | 12.74 | 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 | %(c) | 2008 | 133,717 | 90.1 | % | 20.01 | 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 | % | 12.36 | 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 | 96.4 | % | 6.50 | Redner’s | 56,780 | ||||||||||||||||||||
| Peebles | 19,683 | |||||||||||||||||||||||||||||
| Huntingdon Plaza |
PA | 100 | % | 2004 | 142,845 | 71.9 | % | 5.44 | 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 | 89.4 | % | 17.56 | Giant Foods | 55,000 | ||||||||||||||||||||
| Meadows Marketplace |
PA | 20 | %(b) | 2004 | 91,518 | 100.0 | % | 15.43 | 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 | % | 11.55 | 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 | % | 6.29 | 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 | 88.6 | % | 18.24 | United Artists | 77,700 | ||||||||||||||||||||
| Avalon Carpet | 25,000 | |||||||||||||||||||||||||||||
| Pep Boys | 22,000 | |||||||||||||||||||||||||||||
| Staples | 18,000 | |||||||||||||||||||||||||||||
| South Philadelphia |
PA | 100 | % | 2003 | 283,415 | 79.3 | % | 14.35 | Shop Rite | 54,388 | ||||||||||||||||||||
| Ross Dress For Less | 31,349 | |||||||||||||||||||||||||||||
| Bally’s Total Fitness | 31,000 | |||||||||||||||||||||||||||||
| Modell’s | 20,000 | |||||||||||||||||||||||||||||
15
CEDAR REALTY TRUST, INC.
Real Estate Summary (Continued)
As of September 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 | 97.0 | % | 16.02 | LA Fitness | 37,200 | ||||||||||||||||||||
| The Commons |
PA | 100 | % | 2004 | 203,426 | 87.5 | % | 9.50 | 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 | % | 8.63 | Lowe’s Home Centers | 95,173 | ||||||||||||||||||||
| Giant Eagle | 83,821 | |||||||||||||||||||||||||||||
| Michael’s Store | 17,592 | |||||||||||||||||||||||||||||
| Trexler Mall |
PA | 100 | % | 2005 | 339,363 | 90.2 | % | 9.98 | 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 | 78.9 | % | 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 | % (c) | 2007 | 391,578 | 91.8 | % | 16.91 | 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 |
5,294,384 | 90.4 | % | 12.64 | ||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
| 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 | % | 15.97 | Farm Fresh | 57,662 | ||||||||||||||||||||
| Michael’s | 23,981 | |||||||||||||||||||||||||||||
| Elmhurst Square |
VA | 100 | % | 2006 | 66,250 | 89.1 | % | 9.42 | Food Lion | 38,272 | ||||||||||||||||||||
| General Booth Plaza |
VA | 100 | % | 2005 | 71,639 | 100.0 | % | 12.11 | Farm Fresh | 53,758 | ||||||||||||||||||||
| Kempsville Crossing |
VA | 100 | % | 2005 | 94,477 | 97.3 | % | 11.21 | 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 | % | 10.56 | Food Lion | 33,000 | ||||||||||||||||||||
| Smithfield Plaza |
VA | 100 | % | 2005/2008 | 134,664 | 96.4 | % | 9.38 | 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 | % | 18.47 | 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 | 98.1 | % | 11.41 | ||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
| Total Consolidated Properties, Excluding Held for Sale/Conveyance Properties—“Operating Portfolio” |
|
9,572,807 | 90.8 | % | 11.64 | |||||||||||||||||||||||||
| Franklin Village Plaza (acquired 100% ownership interest on October 10, 2012) |
MA | 20 | %(d) | 2004 | 304,347 | 93.8 | % | 19.99 | Stop & Shop | 75,000 | ||||||||||||||||||||
| Marshalls | 26,890 | |||||||||||||||||||||||||||||
| Team Fitness | 15,807 | |||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
| 9,877,154 | 90.9 | % | $ | 11.91 | ||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
| (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) | Remaining 80% ownership interest acquired on October 12, 2012. |
| (c) | 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. |
| (d) | See page 12 for information relating to the Company’s purchase of the remaining 80% ownership interest in Franklin Village Plaza. |
16
CEDAR REALTY TRUST, INC.
Leasing Activity
| Three months ended | Year to date | |||||||
| Renewals (a) |
September 30, 2012 | September 30, 2012 | ||||||
| Leases signed |
27 | 85 | ||||||
| Square feet |
153,000 | 357,000 | ||||||
| New rent per sq.ft (b) |
$ | 12.03 | $ | 12.27 | ||||
| Prior rent per sq. ft (b) |
$ | 11.09 | $ | 11.39 | ||||
| Cash basis % change |
8.5 | % | 7.7 | % | ||||
| Tenant improvements per sq. ft. |
$ | 0.00 | $ | 0.00 | ||||
| Average lease term (years) |
5.1 | 4.5 | ||||||
| New Leases |
||||||||
| Leases signed |
10 | 34 | ||||||
| Square feet |
31,000 | 169,000 | ||||||
| New rent per sq.ft (b) |
$ | 16.45 | $ | 13.55 | ||||
| Tenant improvements per sq. ft. (c) |
$ | 23.88 | $ | 9.89 | ||||
| Average lease term (years) |
9.0 | 10.0 | ||||||
| Renewals and New Leases |
||||||||
| Leases signed |
37 | 119 | ||||||
| Square feet |
184,000 | 526,000 | ||||||
| New rent per sq.ft (b) |
$ | 12.81 | $ | 12.68 | ||||
| Tenant improvements per sq. ft. (c) |
$ | 4.06 | $ | 3.18 | ||||
| Average lease term (years) |
5.8 | 6.3 | ||||||
| (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 | |||||||
| September 30, 2012 | September 30, 2012 | |||||||
| Leases signed |
25 | 70 | ||||||
| Square feet |
117,000 | 273,000 | ||||||
| Cash basis % change |
9.7 | % | 9.1 | % | ||||
| (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. |
17
CEDAR REALTY TRUST, INC.
Tenant Concentration (Based on Annualized Base Rent)
As of September 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 | % | $ | 13,789,000 | $ | 15.12 | 13.6 | % | ||||||||||||||
| 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 (b) |
3 | 196,000 | 2.0 | % | 1,802,000 | 9.19 | 1.8 | % | ||||||||||||||||
| Staples |
5 | 104,000 | 1.1 | % | 1,701,000 | 16.36 | 1.7 | % | ||||||||||||||||
| Shop Rite |
2 | 118,000 | 1.2 | % | 1,695,000 | 14.36 | 1.7 | % | ||||||||||||||||
| Redner’s |
4 | 202,000 | 2.1 | % | 1,514,000 | 7.50 | 1.5 | % | ||||||||||||||||
| United Artist |
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 | % | 1,163,000 | 18.46 | 1.1 | % | ||||||||||||||||
| Kohl’s Department Store |
2 | 149,000 | 1.6 | % | 1,113,000 | 7.47 | 1.1 | % | ||||||||||||||||
| Marshall’s |
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 | % | 967,000 | 14.88 | 1.0 | % | ||||||||||||||||
| 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 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Sub-total top twenty tenants |
90 | 3,646,000 | 38.1 | % | 44,628,000 | 12.24 | 44.1 | % | ||||||||||||||||
| Remaining tenants |
764 | 5,043,000 | 52.7 | % | 56,505,000 | 11.20 | 55.9 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Sub-total all tenants (c) |
854 | 8,689,000 | 90.8 | % | $ | 101,133,000 | $ | 11.64 | 100.0 | % | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Vacant space |
N/A | 884,000 | 9.2 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Total |
854 | 9,573,000 | 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 $412,000), Shoppers Food Warehouse, and Acme Markets (GLA of 172,000; annualized base rent of $756,000). |
| (b) | Does not include Stop & Shop at Franklin Village Plaza (100% ownership interest acquired on October 10, 2012), with GLA of 75,000, annualized base rent of $1,003,000, and a lease expiration date of April 2026. |
| (c) | Comprised of large tenants (greater than 15,000 sq. ft.) and small tenants as follows: |
| Annualized | Percentage | |||||||||||||||||||
| Annualized | base rent | annualized | ||||||||||||||||||
| GLA | % of GLA | base rent | per sq. ft. | base rents | ||||||||||||||||
| Large tenants |
6,150,000 | 70.8 | % | $ | 61,300,000 | $ | 9.97 | 60.6 | % | |||||||||||
| Small tenants |
2,539,000 | 29.2 | % | 39,833,000 | 15.69 | 39.4 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
8,689,000 | 100.0 | % | $ | 101,133,000 | $ | 11.64 | 100.0 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
18
CEDAR REALTY TRUST, INC.
As of September 30, 2012
| Percentage | ||||||||||||||||||||||||
| Number | Percentage | Annualized | Annualized | of annualized | ||||||||||||||||||||
| Year of lease | of leases | GLA | of GLA | expiring | expiring base | expiring | ||||||||||||||||||
| expiration |
expiring | expiring | expiring | base rents | rents per sq. ft. | base rents | ||||||||||||||||||
| Month-To-Month |
29 | 88,000 | 1.0 | % | $ | 1,080,000 | $ | 12.27 | 1.1 | % | ||||||||||||||
| 2012 |
31 | 79,000 | 0.9 | % | 1,010,000 | 12.78 | 1.0 | % | ||||||||||||||||
| 2013 |
112 | 476,000 | 5.5 | % | 6,658,000 | 13.99 | 6.6 | % | ||||||||||||||||
| 2014 |
130 | 1,185,000 | 13.6 | % | 10,832,000 | 9.14 | 10.7 | % | ||||||||||||||||
| 2015 |
140 | 1,261,000 | 14.5 | % | 13,326,000 | 10.57 | 13.2 | % | ||||||||||||||||
| 2016 |
104 | 881,000 | 10.1 | % | 9,396,000 | 10.67 | 9.3 | % | ||||||||||||||||
| 2017 |
101 | 904,000 | 10.4 | % | 11,363,000 | 12.57 | 11.2 | % | ||||||||||||||||
| 2018 |
49 | 578,000 | 6.7 | % | 7,410,000 | 12.82 | 7.3 | % | ||||||||||||||||
| 2019 |
27 | 337,000 | 3.9 | % | 3,891,000 | 11.55 | 3.8 | % | ||||||||||||||||
| 2020 |
31 | 874,000 | 10.1 | % | 8,086,000 | 9.25 | 8.0 | % | ||||||||||||||||
| 2021 |
32 | 404,000 | 4.6 | % | 5,893,000 | 14.59 | 5.8 | % | ||||||||||||||||
| 2022 |
19 | 131,000 | 1.5 | % | 1,616,000 | 12.34 | 1.6 | % | ||||||||||||||||
| Thereafter |
49 | 1,491,000 | 17.2 | % | 20,572,000 | 13.80 | 20.3 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| All tenants |
854 | 8,689,000 | 100.0 | % | $ | 101,133,000 | $ | 11.64 | 100.0 | % | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Vacant space |
N/A | 884,000 | N/A | |||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Total portfolio |
854 | 9,573,000 | N/A | |||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
19
CEDAR REALTY TRUST, INC.
Property Net Operating Income (“NOI”)
Same-Property (a)
| Three months ended September 30, | Percent | |||||||||||
| 2012 | 2011 | Change | ||||||||||
| Base Rents (b) |
$ | 20,088,000 | $ | 19,986,000 | 0.5 | % | ||||||
| Expenses Recoveries |
4,718,000 | 4,926,000 | -4.2 | % | ||||||||
|
|
|
|
|
|||||||||
| Total Revenues |
24,806,000 | 24,912,000 | -0.4 | % | ||||||||
| Operating Expenses (c) |
6,958,000 | 7,077,000 | -1.7 | % | ||||||||
|
|
|
|
|
|||||||||
| NOI |
$ | 17,848,000 | $ | 17,835,000 | 0.1 | % | ||||||
|
|
|
|
|
|||||||||
| Occupancy |
92.5 | % | 93.1 | % | ||||||||
| No. of properties |
61 | 61 | ||||||||||
NOI growth, excluding dark anchor impact (d) 1.2%
| Nine months ended September 30, | Percent | |||||||||||
| 2012 | 2011 | Change | ||||||||||
| Base Rents (b) |
$ | 59,583,000 | $ | 59,194,000 | 0.7 | % | ||||||
| Expenses Recoveries |
15,305,000 | 16,565,000 | -7.6 | % | ||||||||
|
|
|
|
|
|||||||||
| Total Revenues |
74,888,000 | 75,759,000 | -1.1 | % | ||||||||
| Operating Expenses (c) |
21,483,000 | 23,145,000 | -7.2 | % | ||||||||
|
|
|
|
|
|||||||||
| NOI |
$ | 53,405,000 | $ | 52,614,000 | 1.5 | % | ||||||
|
|
|
|
|
|||||||||
| Occupancy |
92.4 | % | 93.1 | % | ||||||||
| No. of properties |
60 | 60 | ||||||||||
NOI growth, excluding dark anchor impact (d) 2.1%
| (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) | Base rents 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. |
| (d) | Excludes the down time impact prior to Walmart Neighborhood Market taking possession of the space at Oakland Commons, located in Bristol, CT. |
20
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 | ||||||||||||
| Trindle Springs (land parcel) |
100 | % | Mechanicsburg, PA | N/A | 7/20/2012 | 800,000 | ||||||||||||
| Aston (land parcel) |
100 | % | Aston, PA | N/A | 7/27/2012 | 1,365,000 | ||||||||||||
|
|
|
|||||||||||||||||
| Total |
$ | 23,538,000 | ||||||||||||||||
|
|
|
|||||||||||||||||
21
Properties Held For Sale/Conveyance
22
CEDAR REALTY TRUST, INC.
Summary of Real Estate Held for Sale/Conveyance
As of September 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 | % | 352,544 | 84.4 | % | 3.96 | Sears | 64,264 | |||||||||||||||
| Dunham Sports | 61,178 | |||||||||||||||||||||||
| Bon-Ton | 45,000 | |||||||||||||||||||||||
| J.C. Penny | 34,076 | |||||||||||||||||||||||
| Shore Mall |
NJ | 100 | % | 459,058 | 94.9 | % | 7.72 | Boscov’s | 172,200 | |||||||||||||||
| Burlington Coat Factory | 85,000 | |||||||||||||||||||||||
| The Point at Carlisle |
PA | 100 | %(b) | 182,859 | 87.7 | % | 6.69 | Bon-Ton | 59,925 | |||||||||||||||
| Office Max | 22,645 | |||||||||||||||||||||||
| Dunham Sports | 21,300 | |||||||||||||||||||||||
| Dollar Tree | 16,300 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Total Malls |
994,461 | 89.9 | % | 6.28 | ||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Other Non-Core Assets |
||||||||||||||||||||||||
| Dunmore Shopping Center |
PA | 100 | % | 101,080 | 89.2 | % | 2.87 | Enyon Furniture Outlet | 40,000 | |||||||||||||||
| Big Lots | 26,902 | |||||||||||||||||||||||
| Heritage Crossing |
PA | 100 | %(c) | 28,098 | 100.0 | % | 23.59 | Walgreens | 14,748 | |||||||||||||||
| Oakhurst Plaza |
PA | 100 | % | 111,869 | 59.0 | % | 13.86 | Gold’s Gym | 28,499 | |||||||||||||||
| Roosevelt II |
PA | 100 | % | 180,088 | 0.0 | % | — | Vacant | N/A | |||||||||||||||
|
|
|
|||||||||||||||||||||||
| Total Other Non-Core Assets |
421,135 | 43.8 | % | 9.97 | ||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Homburg Joint Venture : |
||||||||||||||||||||||||
| Aston Center |
PA | 20 | %(d) | 55,000 | 100.0 | % | 25.45 | Giant Foods | 55,000 | |||||||||||||||
| Ayr Town Center |
PA | 20 | %(d) | 58,000 | 94.5 | % | 15.36 | Giant Foods | 52,400 | |||||||||||||||
| Parkway Plaza |
PA | 20 | %(d) | 111,028 | 94.6 | % | 14.42 | Giant Foods | 71,335 | |||||||||||||||
| Pennsboro Commons |
PA | 20 | %(d) | 109,724 | 84.7 | % | 14.22 | Giant Foods | 66,224 | |||||||||||||||
| Scott Town Center |
PA | 20 | %(d) | 67,933 | 100.0 | % | 17.96 | Giant Foods | 54,333 | |||||||||||||||
| Spring Meadow Shopping Center |
PA | 20 | %(d) | 70,350 | 100.0 | % | 20.23 | Giant Foods | 67,400 | |||||||||||||||
| Stonehedge Square |
PA | 20 | %(d) | 88,677 | 97.1 | % | 12.22 | Nell’s Market | 51,687 | |||||||||||||||
|
|
|
|||||||||||||||||||||||
| Total Homburg Joint Venture |
560,712 | 94.9 | % | 16.49 | ||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Total Properties Held for Sale |
2,126,750 | 82.1 | % | $ | 9.90 | |||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Land Parcels Previously Acquired for Development |
||||||||||||||||||||||||
| Six land parcels in Pennsylvania |
PA | 100 | % | 80 | acres | |||||||||||||||||||
| Shore Mall |
NJ | 100 | % | 50 | acres | |||||||||||||||||||
| Wyoming |
MI | 100 | % | 12 | acres | |||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Total Land Parcels Previously Acquired for Development |
142 | 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) | Property sold on October 23, 2012. |
| (c) | Although the ownership percentage for this joint venture is stated at 60%, the Company has included 100% of this joint venture’s results of operations in its-pro-rata calculations, based on the terms of the related joint venture agreement. |
| (d) | Properties sold on October 12, 2012. |
23
CEDAR REALTY TRUST, INC.
Properties Held for Sale/Conveyance—Summary of Outstanding Debt
As of September 30, 2012
| Stated | ||||||||||||||||
| Percent | Maturity | Interest | contract | |||||||||||||
| Property |
Owned | Date | rate | amounts | ||||||||||||
| Fixed-rate mortgages: |
||||||||||||||||
| Homburg Joint Venture (a): |
||||||||||||||||
| Spring Meadow Shopping Center |
20 | % | Nov 2014 | 5.9 | % | $ | 11,877,000 | |||||||||
| Ayr Town Center |
20 | % | Jun 2015 | 5.6 | % | 6,825,000 | ||||||||||
| Scott Town Center |
20 | % | Aug 2015 | 4.9 | % | 8,384,000 | ||||||||||
| Aston Center |
20 | % | Nov 2015 | 5.9 | % | 11,985,000 | ||||||||||
| Pennsboro Commons |
20 | % | Mar 2016 | 5.5 | % | 10,430,000 | ||||||||||
| Parkway Plaza |
20 | % | May 2017 | 5.5 | % | 14,244,000 | ||||||||||
| Stonehedge Square |
20 | % | Jul 2017 | 6.2 | % | 8,686,000 | ||||||||||
| Other (b): |
||||||||||||||||
| Roosevelt II |
100 | % | Mar 2012 | 6.5 | % | 11,105,000 | ||||||||||
| Gahanna DDM |
100 | % | Nov 2016 | 5.8 | % | 4,839,000 | ||||||||||
| Westlake DDM |
100 | % | Dec 2016 | 5.6 | % | 3,109,000 | ||||||||||
| McCormick Place |
100 | % | Aug 2017 | 6.1 | % | 2,547,000 | ||||||||||
|
|
|
|||||||||||||||
| Total fixed-rate mortgages |
3.3 years | 5.8 | % | 94,031,000 | ||||||||||||
| [weighted average] | ||||||||||||||||
| Unamortized premium |
140,000 | |||||||||||||||
|
|
|
|||||||||||||||
| Total mortgage debt (including unamortized premium) |
|
$ | 94,171,000 | |||||||||||||
|
|
|
|||||||||||||||
| Cedar’s pro-rata share of total debt |
$ | 36,116,000 | ||||||||||||||
|
|
|
|||||||||||||||
| (a) | Properties sold on October 12, 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. |
24
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), 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 “Recurring 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.
25