SUPPLEMENTAL FINANCIAL INFORMATION PERIOD ENDED DECEMBER 31, 2021

 

 

 


 

 

CEDAR REALTY TRUST, INC.

Supplemental Financial Information

December 31, 2021

(unaudited)

TABLE OF CONTENTS

 

Earnings Press Release

 

4 — 7

 

 

 

Financial Information

 

 

Condensed Consolidated Balance Sheets  

 

8

Condensed Consolidated Statements of Operations

 

9

Supporting Schedules to Consolidated Statements

 

10

Funds From Operations and Additional Disclosures

 

11

EBITDA for Real Estate and Additional Disclosures

 

12

Summary of Outstanding Debt and Maturities

 

13

 

 

 

Portfolio Information

 

 

Real Estate Summary

 

14 — 16

Tenant Categories

 

17

Tenant Concentration

 

18

Lease Expirations

 

19

Leasing Activity

 

20

Same-Property Net Operating Income

 

21

Summary of Dispositions and Real Estate Held for Sale

 

22

 

 

 

Non-GAAP Financial Disclosures

 

23

 

 

 

2

 


 

 

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, certain statements made or incorporated by reference herein are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Cedar Realty Trust, Inc. (the “Company”) 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 that could cause actual results, performance or achievements to differ materially from current expectations include, but are not limited to: (i) the economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic, including: (a) the effectiveness or lack of effectiveness of governmental relief in providing assistance to large and small businesses, particularly including our retail tenants and other retailers, that have suffered significant declines in revenues as a result of mandatory business shut-downs, “shelter-in-place” or “stay-at-home” orders and social distancing practices, as well as individuals adversely impacted by the COVID-19 pandemic, (b) the duration of any such orders or other formal recommendations for social distancing and the speed and extent to which revenues of our retail tenants recover following the lifting of any such orders or recommendations, (c) the potential impact of any such events on the obligations of the Company’s tenants to make rent and other payments or honor other commitments under existing leases, (d) the potential adverse impact on returns from redevelopment projects, (e) to the extent we were seeking to sell properties in the near term, significantly greater uncertainty regarding our ability to do so at attractive prices, and (f) the broader impact of the severe economic contraction and increase in unemployment that has occurred in the short term and negative consequences that will occur if these trends are not quickly reversed; (ii) the ability and willingness of the Company’s tenants and other third parties to satisfy their obligations under their respective contractual arrangements with the Company; (iii) the loss or bankruptcy of the Company’s tenants, particularly in light of the adverse impact to the financial health of many retailers that has occurred and continues to occur as a result of the COVID-19 pandemic; (iv) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration, the Company’s ability to re-lease its properties on the same or better terms in the event of nonrenewal or in the event the Company exercises its right to replace an existing tenant, and obligations the Company may incur in connection with the replacement of an existing tenant, particularly, in light of the adverse impact to the financial health of many retailers that has occurred and continues to occur as a result of the COVID-19 pandemic, and the significant uncertainty as to when and the conditions under which potential tenants will be able to operate physical retail locations in future; (v) macroeconomic conditions, such as a disruption of or lack of access to capital markets and the adverse impact of the recent significant decline in the Company’s share price from prices prior to the spread of the COVID-19 pandemic; (vi) financing risks, such as the Company’s inability to obtain new financing or refinancing on favorable terms as the result of market volatility or instability; (vii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors, including the potential phasing out of LIBOR after 2021; (viii) the impact of the Company’s leverage on operating performance; (ix) risks related to the market for retail space generally, including reductions in consumer spending, variability in retailer demand for leased space, adverse impact of e-commerce, ongoing consolidation in the retail sector and changes in economic conditions and consumer confidence; (x) risks endemic to real estate and the real estate industry generally(xi) competitive risks; (xii) risks related to the geographic concentration of the Company’s properties in the Washington, D.C. to Boston corridor; (xiii) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (xiv) the inability of the Company to realize anticipated returns from its redevelopment activities; (xv) uninsured losses; (xvi) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; and (xvii) information technology security breaches. For further discussion of factors that could materially affect the outcome of forward-looking statements, see “Risk Factors” in Part I, Item 1A, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and other documents that the Company files with the Securities and Exchange Commission from time to time.

Except for ongoing obligations to disclose material information as required by the federal securities laws, the Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. All of the above factors are difficult to predict, contain uncertainties that may materially affect the Company’s actual results and may be beyond the Company’s control.  New factors emerge from time to time, and it is not possible for the Company’s management to predict all such factors or to assess the effects of each factor on the Company’s business. Accordingly, there can be no assurance that the Company’s current expectations will be realized.

 


 

 

3

 


 

CEDAR REALTY TRUST REPORTS

FOURTH QUARTER 2021 RESULTS

 

 

Massapequa, New York – March 10, 2022 – Cedar Realty Trust, Inc. (NYSE: CDR – the “Company”) today reported results for the fourth quarter and full year 2021. Net loss attributable to common shareholders was $(1.47) per diluted share and $(4.24) per diluted share for the fourth quarter and year ended 2021, respectively.  Other highlights include:

 

Operating Highlights

 

NAREIT-defined Funds from operations (FFO) of $0.57 per diluted share for the quarter and $2.40 per diluted share for the year

Operating FFO of $0.57 per diluted share for the quarter and $2.43 per diluted share for the year

Collected 96.7% of base rents and monthly charges for the quarter and 96.5% for the year

Same-property net operating income (NOI) increased 2.8% for the quarter and 3.4% for the year

Signed 50 comparable leases for 308,300 square feet in the quarter and 142 comparable leases for 902,000 square feet for the year

 

o

Signed 35 renewal leases for 195,200 square feet at an increase of 2.3% in the quarter and 98 renewal leases for 580,400 square feet at an increase of 1.8% for the year

 

o

Signed 15 new leases for 113,100 square feet at a decrease of 15.9% in the quarter and 44 new leases for 321,600 square feet at an increase of 3.7% for the year

 

Balance Sheet Highlights

 

During the fourth quarter of 2021, the Company classified Riverview Plaza, East River Park and Senator Square as “real estate held for sale”

 

Subsequent Events

 

On January 27, 2022, the Company signed an LOI to sell Northeast Heights for $39.0 million

On January 27, 2022, the Company signed an LOI to sell the investment in unconsolidated JV for $7.5 million

On February 8, 2022, the Company signed a contract to sell Riverview Plaza for $34.0 million

On March 2, 2022, the Company signed a contract to sell the 33-property grocery-anchored portfolio for $840.0 million

On March 2, 2022, the Company signed a contract to sell the Company and its remaining assets for $291.3 million

 

Financial Results

 

Net loss attributable to common shareholders for the fourth quarter of 2021 was $(19.4) million or $(1.47) per diluted share, compared to net income of $3.3 million or $0.25 per diluted share for the same period in 2020. Net loss attributable to common shareholders for the full year 2021 was $(55.9) million or $(4.24) per diluted share, compared to net loss of $(11.8) million or $(0.92) per dilutive share for the same period of 2020. The principal differences in the comparative three-month and full year results were gain on sales of properties in 2021, and impairment (reversal) charges on properties held for sale in 2021 and 2020, a lease termination fee from a property held for sale in 2020, and the acceleration of depreciation relating to the demolition of certain existing buildings at redevelopment properties in 2020.

 

NAREIT-defined FFO and Operating FFO for the fourth quarter of 2021 was $7.9 million or $0.57 per diluted share, compared to $9.8 million or $0.71 per diluted share for the same period in 2020. The difference between Operating FFO and NAREIT-defined FFO in 2020 was redevelopment costs and financing costs.

 

NAREIT-defined FFO for the full year 2021 was $33.3 million or $2.40 per diluted share, compared to $39.8 million or $2.88 per dilutive share for the same period in 2020. Operating FFO for the full year 2021 was $33.8 million or $2.43 per diluted share, as compared to $40.3 million or $2.91 per dilutive share for the same period in 2020. The principal differences between the comparative full year NAREIT-defined FFO and Operating FFO results were the effects of COVID-19 and lease termination income in 2020.

 

Portfolio Update

 

During the fourth quarter of 2021, the Company signed 54 leases for 316,800 square feet. On a comparable space basis, the Company signed 35 renewal leases for 195,200 square feet at an increase of 2.3% and 15 new leases for 113,100 square feet at a decrease of 15.9%. During the full year 2021, the Company signed 158 leases for 1,024,300 square feet. On a comparable space basis, the Company signed 98 renewal leases for 580,400 square feet at an increase of 1.8% and 44 new leases for 321,600 square feet at an increase of 3.7%.

 

 

 

4

 


 

 

Excluding redevelopments, same-property NOI increased 2.8% for the fourth quarter of 2021 and increased 3.4% for the full year 2021, as compared to the same periods of 2020. Including redevelopments same-property NOI decreased 0.6% for the fourth quarter of 2021 and increased 1.8% for the full year 2021, as compared to the same periods of 2020. The year ended December 31, 2020 was significantly impacted by the effects of COVID-19.

 

The Company’s same-property portfolio was 91.8% leased at December 31, 2021, compared to 91.4% at September 30, 2021 and 92.0% at December 31, 2020. The Company’s total portfolio, excluding properties held for sale, was 91.0% leased at December 31, 2021, compared to 89.8% at September 30, 2021 and 89.1% at December 31, 2020.

 

Balance Sheet

 

During the fourth quarter of 2021, the Company classified Riverview Plaza, located in Philadelphia, Pennsylvania, and East River Park and Senator Square, both located in Washington, D.C., as “real estate held for sale” in the accompanying consolidated balance sheet.

 

On March 2, 2022, the Company announced that following its previously announced dual-track review of strategic alternatives, the Company has entered into definitive agreements that will result in the sale of the Company and its assets in a series of related all-cash transactions. The Company (1) entered into an agreement to sell a portfolio of 33 grocery-anchored shopping centers for $840.0 million, (2) entered into an agreement to sell the Revelry redevelopment project for $34.0 million, (3) is negotiating a contract for the sale of the Northeast Heights redevelopment project for $46.5 million and (4) entered into an agreement to sell the Company and its remaining assets for $291.3 million. The acquirer of the portfolio of 33 grocery-anchored shopping centers has agreed to backstop the two redevelopment transactions at the aggregate price of $80.5 million if they do not close before the closing of the shopping center portfolio transaction. The contracts to sell the 33 grocery-anchored shopping centers and to sell the Company and its remaining assets require shareholder approval.

 

As part of the dual-track strategic alternatives process, the Company has determined that certain of the Company’s operating properties would be sold significantly prior to the end of their previously estimated hold periods. The Company recorded $101.7 million in impairment charges.

 

 

Non-GAAP Financial Measures

 

NAREIT-defined FFO is a widely recognized supplemental non-GAAP measure utilized to evaluate the financial performance of a REIT. The Company considers NAREIT-defined FFO to be an appropriate measure of its financial performance because 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 other depreciable assets. The Company also considers Operating FFO to be an additional meaningful financial measure of financial performance because it excludes items the Company does not believe are indicative of its core operating performance, such as acquisition pursuit costs, amounts relating to early extinguishment of debt and preferred stock redemption costs, management transition costs and certain redevelopment costs. The Company believes Operating FFO further assists in comparing the Company’s performance across reporting periods on a consistent basis by excluding such items. NAREIT-defined FFO and Operating FFO should be reviewed with GAAP net income attributable to common shareholders, the most directly comparable GAAP financial measure, when trying to understand the Company’s operating performance. A reconciliation of net income (loss) attributable to common shareholders to NAREIT-defined FFO and Operating FFO for the three and twelve months ended December 31, 2021 and 2020 is detailed in the attached schedule.

 

EBITDAre is a recognized supplemental non-GAAP financial measure. The Company presents EBITDAre in accordance with the definition adopted by NAREIT, which generally defines EBITDAre as net income plus interest expense, income tax expense, depreciation, amortization, and impairment write-downs of depreciated property, plus or minus losses and gains on the disposition of depreciated property, and adjustments to reflect the Company’s share of EBITDAre of unconsolidated affiliates. The Company believes EBITDAre provides additional information with respect to the Company’s performance and ability to meet its future debt service requirements. The Company also considers Adjusted EBITDAre to be an additional meaningful financial measure of financial performance because it excludes items the Company does not believe are indicative of its core operating performance, such as management transition, acquisition pursuit and redevelopment costs. The Company believes Adjusted EBITDAre further assists in comparing the Company’s performance across reporting periods on a consistent basis by excluding such items. EBITDAre and Adjusted EBITDAre should be reviewed with GAAP net income, the most directly comparable GAAP financial measure, when trying to understand the Company’s operating performance. EBITDAre and Adjusted EBITDAre do not represent cash generated from operating activities and should not be considered as an alternative to income from continuing operations or to cash flow from operating activities. The Company’s computation of Adjusted EBITDAre may differ from the computations utilized by other companies and, accordingly, may not be comparable to such companies.

 

Same-property NOI is a widely recognized supplemental non-GAAP financial measure for REITs.  Properties are included in same-property NOI if they are owned and operated for the entirety of both periods being compared, except for properties undergoing significant redevelopment and expansion until such properties have stabilized, and properties classified as held for sale. Consistent with the capital treatment of such costs under GAAP, tenant improvements, leasing commissions and other direct leasing costs are excluded from same-property NOI. The Company

 

 

5

 


 

considers same-property NOI useful to investors as it provides an indication of the recurring cash generated by the Company’s properties by excluding certain non-cash revenues and expenses, as well as other infrequent items such as lease termination income which tends to fluctuate more than rents from year to year. Same-property NOI should be reviewed with consolidated operating income, the most directly comparable GAAP financial measure.

 

Supplemental Financial Information Package

 

The Company has issued “Supplemental Financial Information” for the period ended December 31, 2021. Such information has been filed today as an exhibit to Form 8-K and will also be available on the Company’s website at www.cedarrealtytrust.com.

 

About Cedar Realty Trust

 

Cedar Realty Trust, Inc. is a fully-integrated real estate investment trust which focuses on the ownership, operation and redevelopment of grocery-anchored shopping centers in high-density urban markets from Washington, D.C. to Boston. The Company’s portfolio (excluding properties treated as “held for sale”) comprises 50 properties, with approximately 7.3 million square feet of gross leasable area.

 

For additional financial and descriptive information on the Company, its operations and its portfolio, please refer to the Company’s website at www.cedarrealtytrust.com.

 

Forward-Looking Statements

 

Certain statements made in this press release that are not strictly historical are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Cedar Realty Trust, Inc. (the “Company”) 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 that could cause actual results, performance or achievements to differ materially from current expectations include, but are not limited to: (i) the economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic, including: (a) the effectiveness or lack of effectiveness of governmental relief in providing assistance to large and small businesses, particularly including our retail tenants and other retailers, that have suffered significant declines in revenues as a result of mandatory business shut-downs, “shelter-in-place” or “stay-at-home” orders and social distancing practices, as well as individuals adversely impacted by the COVID-19 pandemic, (b) the duration of any such orders or other formal recommendations for social distancing and the speed and extent to which revenues of our retail tenants recover following the lifting of any such orders or recommendations, (c) the potential impact of any such events on the obligations of the Company’s tenants to make rent and other payments or honor other commitments under existing leases, (d) the potential adverse impact on returns from redevelopment projects, (e) to the extent we were seeking to sell properties in the near term, significantly greater uncertainty regarding our ability to do so at attractive prices, and (f) the broader impact of the severe economic contraction and increase in unemployment that has occurred in the short term and negative consequences that will occur if these trends are not quickly reversed; (ii) the ability and willingness of the Company’s tenants and other third parties to satisfy their obligations under their respective contractual arrangements with the Company; (iii) the loss or bankruptcy of the Company’s tenants, particularly in light of the adverse impact to the financial health of many retailers that has occurred and continues to occur as a result of the COVID-19 pandemic; (iv) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration, the Company’s ability to re-lease its properties on the same or better terms in the event of nonrenewal or in the event the Company exercises its right to replace an existing tenant, and obligations the Company may incur in connection with the replacement of an existing tenant, particularly, in light of the adverse impact to the financial health of many retailers that has occurred and continues to occur as a result of the COVID-19 pandemic, and the significant uncertainty as to when and the conditions under which potential tenants will be able to operate physical retail locations in future; (v) macroeconomic conditions, such as a disruption of or lack of access to capital markets and the adverse impact of the recent significant decline in the Company’s share price from prices prior to the spread of the COVID-19 pandemic; (vi) financing risks, such as the Company’s inability to obtain new financing or refinancing on favorable terms as the result of market volatility or instability; (vii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors, including the potential phasing out of LIBOR after 2021; (viii) the impact of the Company’s leverage on operating performance; (ix) risks related to the market for retail space generally, including reductions in consumer spending, variability in retailer demand for leased space, adverse impact of e-commerce, ongoing consolidation in the retail sector and changes in economic conditions and consumer confidence; (x) risks endemic to real estate and the real estate industry generally; (xi) competitive risks; (xii) risks related to the geographic concentration of the Company’s properties in the Washington, D.C. to Boston corridor; (xiii) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (xiv) the inability of the Company to realize anticipated returns from its redevelopment activities; (xv) uninsured losses; (xvi) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; and (xvii) information technology security breaches. For further discussion of factors that could materially affect the outcome of forward-looking statements, see “Risk Factors” in Part I, Item 1A, of the Company’s Annual Report on Form 10-K for the years ended December 31, 2020 and December 31, 2019, when available, and other documents that the Company files with the Securities and Exchange Commission from time to time.

 

 

 

6

 


 

 

Except for ongoing obligations to disclose material information as required by the federal securities laws, the Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. All of the above factors are difficult to predict, contain uncertainties that may materially affect the Company’s actual results and may be beyond the Company’s control.  New factors emerge from time to time, and it is not possible for the Company’s management to predict all such factors or to assess the effects of each factor on the Company’s business. Accordingly, there can be no assurance that the Company’s current expectations will be realized.

 

 

 

 

Contact Information:

Cedar Realty Trust, Inc.

Jennifer Bitterman

Executive Vice President, Chief Financial Officer and Treasurer

(516) 944-4561

 


 

 

7

 


 

 

CEDAR REALTY TRUST, INC.

Condensed Consolidated Balance Sheets

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

Real estate, at cost

 

$

1,288,524,000

 

 

$

1,527,478,000

 

Less accumulated depreciation

 

 

(409,742,000

)

 

 

(428,569,000

)

Real estate, net

 

 

878,782,000

 

 

 

1,098,909,000

 

Real estate held for sale

 

 

73,251,000

 

 

 

9,498,000

 

Investment in unconsolidated joint venture

 

 

4,654,000

 

 

 

-

 

Cash and cash equivalents

 

 

3,039,000

 

 

 

1,637,000

 

Restricted cash

 

 

230,000

 

 

 

-

 

Receivables

 

 

21,868,000

 

 

 

21,952,000

 

Other assets and deferred charges, net

 

 

35,070,000

 

 

 

45,255,000

 

TOTAL ASSETS

 

$

1,016,894,000

 

 

$

1,177,251,000

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage loan payable, net

 

$

156,821,000

 

 

$

45,385,000

 

Finance lease obligation

 

 

5,314,000

 

 

 

5,340,000

 

Unsecured revolving credit facility

 

 

66,000,000

 

 

 

175,000,000

 

Unsecured term loans, net

 

 

298,903,000

 

 

 

398,549,000

 

Accounts payable and accrued liabilities

 

 

42,099,000

 

 

 

56,580,000

 

Unamortized intangible lease liabilities

 

 

7,789,000

 

 

 

8,939,000

 

Total liabilities

 

 

576,926,000

 

 

 

689,793,000

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Preferred stock

 

 

159,541,000

 

 

 

159,541,000

 

Common stock and other shareholders' equity

 

 

277,841,000

 

 

 

323,957,000

 

Noncontrolling interests

 

 

2,586,000

 

 

 

3,960,000

 

Total equity

 

 

439,968,000

 

 

 

487,458,000

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

1,016,894,000

 

 

$

1,177,251,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 


 

 

CEDAR REALTY TRUST, INC.

Condensed Consolidated Statements of Operations

 

 

 

Three months ended

December 31,

 

 

Years ended

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

PROPERTY REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenues

 

$

30,840,000

 

 

$

32,705,000

 

 

$

126,451,000

 

 

$

127,171,000

 

Other

 

 

377,000

 

 

 

553,000

 

 

 

1,099,000

 

 

 

8,367,000

 

Total property revenues

 

 

31,217,000

 

 

 

33,258,000

 

 

 

127,550,000

 

 

 

135,538,000

 

PROPERTY OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating, maintenance and management

 

 

7,171,000

 

 

 

6,737,000

 

 

 

26,817,000

 

 

 

25,545,000

 

Real estate and other property-related taxes

 

 

4,661,000

 

 

 

4,698,000

 

 

 

19,629,000

 

 

 

20,051,000

 

Total property operating expenses

 

 

11,832,000

 

 

 

11,435,000

 

 

 

46,446,000

 

 

 

45,596,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY OPERATING INCOME

 

 

19,385,000

 

 

 

21,823,000

 

 

 

81,104,000

 

 

 

89,942,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER EXPENSES AND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

4,403,000

 

 

 

4,032,000

 

 

 

18,033,000

 

 

 

16,865,000

 

Depreciation and amortization

 

 

8,476,000

 

 

 

10,204,000

 

 

 

39,454,000

 

 

 

48,412,000

 

Gain on sales

 

 

-

 

 

 

(3,717,000

)

 

 

(49,904,000

)

 

 

(4,396,000

)

Impairment charges

 

 

19,001,000

 

 

 

-

 

 

 

99,888,000

 

 

 

7,607,000

 

Total other expenses and income

 

 

31,880,000

 

 

 

10,519,000

 

 

 

107,471,000

 

 

 

68,488,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

(12,495,000

)

 

 

11,304,000

 

 

 

(26,367,000

)

 

 

21,454,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING INCOME AND EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(4,342,000

)

 

 

(5,121,000

)

 

 

(18,636,000

)

 

 

(21,974,000

)

Total non-operating income and expense

 

 

(4,342,000

)

 

 

(5,121,000

)

 

 

(18,636,000

)

 

 

(21,974,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

 

(16,837,000

)

 

 

6,183,000

 

 

 

(45,003,000

)

 

 

(520,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to noncontrolling interests

 

 

87,000

 

 

 

(179,000

)

 

 

(96,000

)

 

 

(552,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.

 

 

(16,750,000

)

 

 

6,004,000

 

 

 

(45,099,000

)

 

 

(1,072,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends

 

 

(2,688,000

)

 

 

(2,688,000

)

 

 

(10,752,000

)

 

 

(10,752,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

 

$

(19,438,000

)

 

$

3,316,000

 

 

$

(55,851,000

)

 

$

(11,824,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND DILUTED):

 

$

(1.47

)

 

$

0.25

 

 

$

(4.24

)

 

$

(0.92

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - basic and diluted

 

 

13,276,000

 

 

 

13,112,000

 

 

 

13,213,000

 

 

 

13,104,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 


 

 

CEDAR REALTY TRUST, INC.

Supporting Schedules to Consolidated Statements

 

 

Balance Sheets

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction in process (included in real estate, at cost)

 

$

20,293,000

 

 

$

41,699,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rents and other tenant receivables, net (a)

 

$

7,242,000

 

 

$

6,541,000

 

 

 

 

 

 

 

 

 

Mortgage note and other receivable

 

 

3,500,000

 

 

 

3,500,000

 

 

 

 

 

 

 

 

 

Straight-line rents

 

 

11,126,000

 

 

 

11,911,000

 

 

 

 

 

 

 

 

 

 

 

$

21,868,000

 

 

$

21,952,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets and deferred charges, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease origination costs

 

$

15,233,000

 

 

$

22,331,000

 

 

 

 

 

 

 

 

 

Right-of-use assets

 

 

9,861,000

 

 

 

13,828,000

 

 

 

 

 

 

 

 

 

Prepaid expenses

 

 

7,255,000

 

 

 

6,906,000

 

 

 

 

 

 

 

 

 

Revolving credit facility issuance costs

 

 

1,134,000

 

 

 

623,000

 

 

 

 

 

 

 

 

 

Other

 

 

1,587,000

 

 

 

1,567,000

 

 

 

 

 

 

 

 

 

 

 

$

35,070,000

 

 

$

45,255,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

23,648,000

 

 

$

23,576,000

 

 

 

 

 

 

 

 

 

Right-of-use liabilities

 

 

10,219,000

 

 

 

14,077,000

 

 

 

 

 

 

 

 

 

Interest rate swap liabilities

 

 

8,232,000

 

 

 

18,927,000

 

 

 

 

 

 

 

 

 

 

 

$

42,099,000

 

 

$

56,580,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statements of Operations

 

Three months ended

December 31,

 

 

Years ended

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Rental revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Base rents

 

$

22,491,000

 

 

$

24,212,000

 

 

$

92,738,000

 

 

$

95,987,000

 

Expense recoveries

 

 

7,837,000

 

 

 

7,546,000

 

 

 

31,022,000

 

 

 

29,241,000

 

Percentage rent

 

 

342,000

 

 

 

626,000

 

 

 

1,347,000

 

 

 

1,778,000

 

Straight-line rents

 

 

(96,000

)

 

 

14,000

 

 

 

270,000

 

 

 

(1,208,000

)

Amortization of intangible lease liabilities, net

 

 

266,000

 

 

 

307,000

 

 

 

1,074,000

 

 

 

1,373,000

 

 

 

$

30,840,000

 

 

$

32,705,000

 

 

$

126,451,000

 

 

$

127,171,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Includes $0.3 million of net receivables related to deferred rent as a result of COVID-19 as of December 31, 2021.

 

 

10

 


 

CEDAR REALTY TRUST, INC.

Funds From Operations and Additional Disclosures

 

 

 

 

Three months ended

December 31,

 

 

Years ended

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net (loss) income attributable to common shareholders

 

$

(19,438,000

)

 

$

3,316,000

 

 

$

(55,851,000

)

 

$

(11,824,000

)

Real estate depreciation and amortization

 

 

8,463,000

 

 

 

10,182,000

 

 

 

39,380,000

 

 

 

48,297,000

 

Limited partners' interest

 

 

(115,000

)

 

 

21,000

 

 

 

(329,000

)

 

 

(66,000

)

Gain on sales

 

 

-

 

 

 

(3,717,000

)

 

 

(49,904,000

)

 

 

(4,396,000

)

Impairment charges

 

 

19,001,000

 

 

 

-

 

 

 

99,888,000

 

 

 

7,607,000

 

Consolidated minority interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of income

 

 

28,000

 

 

 

158,000

 

 

 

425,000

 

 

 

618,000

 

Share of FFO

 

 

(24,000

)

 

 

(112,000

)

 

 

(303,000

)

 

 

(388,000

)

Funds From Operations ("FFO") applicable to diluted common shares

 

 

7,915,000

 

 

 

9,848,000

 

 

 

33,306,000

 

 

 

39,848,000

 

Adjustments for items affecting comparability:

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment costs (a)

 

 

-

 

 

 

-

 

 

 

230,000

 

 

 

483,000

 

Financing costs (b)

 

 

-

 

 

 

-

 

 

 

215,000

 

 

 

-

 

Operating Funds From Operations ("Operating FFO") applicable to diluted common shares

 

$

7,915,000

 

 

$

9,848,000

 

 

$

33,751,000

 

 

$

40,331,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per diluted common share:

 

$

0.57

 

 

$

0.71

 

 

$

2.40

 

 

$

2.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating FFO per diluted common share:

 

$

0.57

 

 

$

0.71

 

 

$

2.43

 

 

$

2.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of diluted common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares and equivalents

 

 

13,778,000

 

 

 

13,759,000

 

 

 

13,814,000

 

 

 

13,758,000

 

OP Units

 

 

81,000

 

 

 

81,000

 

 

 

81,000

 

 

 

81,000

 

 

 

 

13,859,000

 

 

 

13,840,000

 

 

 

13,895,000

 

 

 

13,839,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional Disclosures (c):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line rents

 

$

(96,000

)

 

$

14,000

 

 

$

270,000

 

 

$

(1,208,000

)

Amortization of intangible lease liabilities

 

 

266,000

 

 

 

307,000

 

 

 

1,074,000

 

 

 

1,373,000

 

Non-real estate amortization

 

 

169,000

 

 

 

384,000

 

 

 

1,433,000

 

 

 

1,447,000

 

Share-based compensation, net

 

 

534,000

 

 

 

970,000

 

 

 

3,043,000

 

 

 

3,723,000

 

Maintenance capital expenditures (d)

 

 

835,000

 

 

 

1,084,000

 

 

 

3,565,000

 

 

 

7,222,000

 

Lease related expenditures (e)

 

 

1,695,000

 

 

 

3,594,000

 

 

 

8,231,000

 

 

 

9,773,000

 

Development and redevelopment capital expenditures

 

 

8,431,000

 

 

 

4,480,000

 

 

 

19,790,000

 

 

 

27,898,000

 

Capitalized interest and financing costs

 

 

950,000

 

 

 

809,000

 

 

 

3,400,000

 

 

 

2,674,000

 

 

(a)

Includes redevelopment project costs expensed pursuant to GAAP such as certain demolition and lease termination costs.

(b)

Represents acceleration of amortization of financing costs related to the term note paid-off prior to maturity.

(c)

These additional disclosures are presented to assist with understanding the Company’s real estate operations and capital requirements.  These amounts should not be considered independently or as a substitute for the Company’s consolidated financial statements reported under GAAP.

(d)

Consists of payments for building and site improvements.

(e)

Consists of payments for tenant improvements and leasing commissions.

 

 

 

 

11

 


 

 

CEDAR REALTY TRUST, INC.

EBITDA for Real Estate (“EBITDAre”) and Additional Disclosures

 

 

 

Three months ended

December 31,

 

 

Years ended

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net income (loss)

 

$

(16,837,000

)

 

$

6,183,000

 

 

$

(45,003,000

)

 

$

(520,000

)

Interest expense

 

 

4,342,000

 

 

 

5,121,000

 

 

 

18,636,000

 

 

 

21,974,000

 

Depreciation and amortization

 

 

8,476,000

 

 

 

10,204,000

 

 

 

39,454,000

 

 

 

48,412,000

 

Gain on sales

 

 

-

 

 

 

(3,717,000

)

 

 

(49,904,000

)

 

 

(4,396,000

)

Impairment charges

 

 

19,001,000

 

 

 

-

 

 

 

99,888,000

 

 

 

7,607,000

 

EBITDAre

 

 

14,982,000

 

 

 

17,791,000

 

 

 

63,071,000

 

 

 

73,077,000

 

Adjustments for items affecting comparability:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment costs (a)

 

 

-

 

 

 

-

 

 

 

230,000

 

 

 

483,000

 

Financing costs (b)

 

 

-

 

 

 

-

 

 

 

215,000

 

 

 

-

 

Adjusted EBITDAre

 

$

14,982,000

 

 

$

17,791,000

 

 

$

63,516,000

 

 

$

73,560,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt, excluding issuance costs

 

$

524,571,000

 

 

$

620,645,000

 

 

$

524,571,000

 

 

$

620,645,000

 

Finance lease obligation

 

 

5,596,000

 

 

 

5,631,000

 

 

 

5,596,000

 

 

 

5,631,000

 

Unrestricted cash and cash equivalents

 

 

(3,039,000

)

 

 

(1,637,000

)

 

 

(3,039,000

)

 

 

(1,637,000

)

 

 

$

527,128,000

 

 

$

624,639,000

 

 

$

527,128,000