CEDAR REALTY TRUST, INC.

Supplemental Financial Information

June 30, 2022

(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 – 15

Tenant Concentration

 

16

Lease Expirations

 

17

Leasing Activity

 

18

Same-Property Net Operating Income

 

19

Summary of Real Estate Held for Sale

 

        20

 

 

 

Non-GAAP Financial Disclosures

 

        21

 

 

 

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 possibility that any or all of the various conditions to the consummation of the Merger (as defined herein) may not be satisfied or waived; (ii) the ability of the parties to the Merger to obtain required financing in connection with the proposed Merger; (iii) the possibility that competing offers or acquisition proposals for the Company and/or its assets will be made; (iv) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement (as defined herein), including in circumstances which would require the Company to pay a termination fee or other expenses; (v) the risk that shareholder litigation in connection with the Transactions (as defined herein) may result in significant costs of defense, indemnification and liability; (vi) 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; (vii) 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; (viii) 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; (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) damage to the Company's properties from catastrophic weather and other natural events, and the physical effects of climate change; (xii) uninsured losses; (xiii) the Company's ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; and (xiv) 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, 2021 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

SECOND QUARTER 2022 RESULTS

 

 

Massapequa, New York – August 4, 2022 – Cedar Realty Trust, Inc. (NYSE:CDR – the “Company”) today reported results for the second quarter 2022. Net loss attributable to common shareholders was $(3.41) per diluted share.  Other highlights include:

 

Operating Highlights

 

NAREIT-defined Funds From Operations (FFO) of a negative $(1.64) per diluted share for the quarter

Operating FFO of $0.58 per diluted share for the quarter

Same-property net operating income (NOI) decreased 3.5% for the quarter

Signed 32 new and renewal leases for 178,600 square feet in the quarter

Comparable cash-basis lease spreads of 0.9% for the quarter

 

Balance Sheet Highlights

 

On May 16, 2022, the Company sold Riverview Plaza for $34 million

On May 27, 2022, the Company’s common stockholders at a special meeting of stockholders approved the previously announced transactions

On June 28, 2022, the Company acquired the minority ownership in the Crossroads joint venture for $1.0 million

Subsequent Events

On July 7, 2022, the Company completed the 33 Grocery-Anchored Portfolio Sale and the sale of East River and Senator Square for $879 million

On July 11, 2022, the Company paid-off its unsecured term notes and unsecured credit facility

On July 11, 2022, in connection with the pay-off of the unsecured term notes, the Company terminated all its interest rate swap agreements for a net benefit of $3.4 million

Transaction Agreements

On March 2, 2022, the Company announced that following its previously announced review of strategic alternatives, it had entered into definitive agreements for the sale of the Company and its assets in a series of related all-cash transactions.  Specifically, on March 2, 2022, the Company and certain of its subsidiaries, DRA Fund X-B LLC and KPR Centers LLC (together with their respective designees, the “Grocery-Anchored Purchasers”) entered into an asset purchase and sale agreement to purchase a portfolio of 33 grocery-anchored shopping centers from the Company for a cash purchase price of $840.0 million (the “Grocery-Anchored Portfolio Sale”). This agreement provides that to the extent specified redevelopment assets of the Company are not sold by the Company to third parties prior to the closing, these assets will be acquired for an additional cash purchase price of up to $80.5 million. In addition, on March 2, 2022, the Company entered into an agreement and plan of merger with Wheeler Real Estate Investment Trust, Inc. (“Wheeler”) and certain of its affiliates pursuant to which Wheeler will acquire the balance of the Company’s shopping center assets by way of an all-cash merger transaction that values the remaining portfolio at $291.3 million (the “Merger”).  Following completion of the transactions contemplated by the merger agreement, the Company will survive as a wholly-owned subsidiary of Wheeler. The Company’s currently outstanding 7.25% Series B Preferred Stock and 6.50% Series C Preferred Stock will remain outstanding as shares of preferred stock in the surviving company following the transactions and are expected to remain listed on the New York Stock Exchange.

The two transactions discussed above were unanimously approved by the Company’s Board of Directors and were approved by the Company’s common stockholders at a special meeting of stockholders held on May 27, 2022, and are estimated to generate total net proceeds, after all transaction expenses, of approximately $29.00 per share in cash, which will be distributed to shareholders upon completion of the Merger. The Merger is expected to close in August 2022, subject to satisfaction of customary closing conditions.

 

On July 7, 2022, the Company and certain of its subsidiaries completed the Grocery-Anchored Portfolio Sale and East River Park and Senator Square sales for total gross proceeds of approximately $879 million, including the assumed debt. There were no material relationships among the Company, the Grocery-Anchored Purchasers, or any of their respective affiliates.

 

Common Stock Dividends

 

In connection with the two transactions discussed above, the Company and its Board announced a suspension of its previously announced 2022 common stock dividend policy and that the Company will not pay a dividend on the common stock for the second quarter ending June 30, 2022. The Board will assess future quarterly common dividend declarations going forward.

 

 

4

 


 

 

 

 

Financial Results

 

Net loss attributable to common shareholders for the second quarter of 2022 was $(45.3) million or $(3.41) per diluted share, compared to net income of $48.4 million or $3.52 per diluted share for the same period in 2021. Net loss attributable to common shareholders for the six-month period ending June 30, 2022 was $(49.0) million or $(3.69) per diluted share, compared to net income of $46.8 million or $3.41 per diluted share for the same period in 2021. The principal differences in the comparative three and six-month results were gain on sales of properties in 2021, impairment charges on properties held for sale in 2022, transaction costs in 2022, and the acceleration of depreciation relating to the demolition of certain existing buildings at redevelopment properties in 2021.

 

NAREIT-defined FFO for the second quarter of 2022 was a negative $(22.5) million or $(1.64) per diluted share, compared to $8.2 million or $0.59 per diluted share for the same period in 2021. The decrease is attributable to transaction costs incurred in 2022 relating to the two transactions discussed above. Operating FFO for the second quarter of 2022 was $7.9 million or $0.58 per diluted share, compared to $8.5 million or $0.61 per diluted share for the same period in 2021.

 

NAREIT-defined FFO for the six months ended June 30, 2022 was a negative $(17.3) million or $(1.25) per diluted share, compared to $16.8 million or $1.21 per diluted share for the same period in 2021. The decrease is attributable to transaction costs incurred in 2022 relating to the two transactions discussed above. Operating FFO for the six months ended June 30, 2022 was $16.9 million or $1.22 per diluted share, compared to $17.1 million or $1.23 per diluted share for the same period in 2021.

 

Portfolio Update

 

During the second quarter of 2022, the Company signed 32 leases, for 178,600 square feet. On a comparable space basis, the Company signed 29 leases for 128,700 square feet at a positive lease spread of 0.9% on a cash basis (new leases increased 2.8% and renewals increased 0.6%). During the six-month period ended June 30, 2022, the Company signed 68 leases, for 339,800 square feet. On a comparable space basis, the Company signed 63 leases for 346,500 square feet at a positive lease spread of 14.2% on a cash basis (new leases increased 46.2% and renewals increased 3.4%).

 

Same-property NOI decreased 3.5% for the second quarter of 2022 and increased 0.1% for the six months ended June 30, 2022, as compared to the same periods in 2021.  

 

The Company’s total portfolio, excluding properties held for sale, was 86.3% leased at June 30, 2022. The Company’s same-property portfolio was 86.3% leased at June 30, 2022, compared to 86.9% at June 30, 2021.

 

As of June 30, 2022, Carll’s Corner, located in Bridgeton, New Jersey, the 33 grocery-anchored shopping centers and two redevelopment properties have been classified as “real estate held for sale” on the accompanying consolidated balance sheet.

 

Balance Sheet

 

On August 30, 2021, the Company amended its existing $300 million unsecured credit facility and $50 million term loan. After the amendment, the new unsecured revolving credit facility is $185 million with an expiration in August 2024. The new unsecured revolving credit facility may be extended, at the Company’s option for two additional one-year periods, subject to customary conditions. Interest on the borrowings under the new unsecured revolving credit facility component can range from LIBOR plus 135 bps to 195 bps (150 bps at June 30, 2022), based on the Company’s leverage ratio. Interest on borrowings under the unsecured credit facility is based on the Company’s leverage ratio. The Company extended its $50 million term note four years with an expiration in August 2026. As of June 30, 2022, the Company had $41.0 million outstanding under its revolving credit facility. On July 11, 2022, in connection with the transactions noted above paid-off its unsecured credit facility and its unsecured term notes.

 

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

 

 

5

 


 

reconciliation of net income (loss) attributable to common shareholders to NAREIT-defined FFO and Operating FFO for the three and six months ended June 30, 2022 and 2021 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 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 June 30, 2022. 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 17 properties, with approximately 2.6 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 possibility that any or all of the various conditions to the consummation of the Merger (as defined herein) may not be satisfied or waived; (ii) the ability of the parties to the Merger to obtain required financing in connection with the proposed Merger; (iii) the possibility that competing offers or acquisition proposals for the Company and/or its assets will be made; (iv) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement (as defined herein), including in circumstances which would require the Company to pay a termination fee or other expenses; (v) the risk that shareholder litigation in connection with the Transactions (as defined herein) may result in significant costs of defense, indemnification and liability; (vi) 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; (vii) 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; (viii) 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; (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-

 

 

6

 


 

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) damage to the Company's properties from catastrophic weather and other natural events, and the physical effects of climate change; (xii) uninsured losses; (xiii) the Company's ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; and (xiv) 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, 2021 and December 31, 2020, when available, 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.

 

 

 

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

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

 

Real estate, at cost

 

$

370,128,000

 

 

$

369,827,000

 

Less accumulated depreciation

 

 

(159,992,000

)

 

 

(155,250,000

)

Real estate, net

 

 

210,136,000

 

 

 

214,577,000

 

Real estate held for sale

 

 

719,312,000

 

 

 

757,037,000

 

Investment in unconsolidated joint venture

 

 

4,809,000

 

 

 

4,654,000

 

Cash and cash equivalents

 

 

1,042,000

 

 

 

3,039,000

 

Restricted cash

 

 

230,000

 

 

 

230,000

 

Receivables

 

 

13,098,000

 

 

 

13,580,000

 

Other assets and deferred charges, net

 

 

21,522,000

 

 

 

23,777,000

 

TOTAL ASSETS

 

$

970,149,000

 

 

$

1,016,894,000

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage loan payable, net - held for sale

 

$

156,356,000

 

 

$

156,821,000

 

Finance lease obligation - held for sale

 

 

5,300,000

 

 

 

5,314,000

 

Unsecured revolving credit facility

 

 

41,000,000

 

 

 

66,000,000

 

Unsecured term loans, net

 

 

299,092,000

 

 

 

298,903,000

 

Accounts payable and accrued liabilities

 

 

61,301,000

 

 

 

42,099,000

 

Unamortized intangible lease liabilities

 

 

5,040,000

 

 

 

5,367,000

 

Unamortized intangible lease liabilities - held for sale

 

 

2,238,000

 

 

 

2,422,000

 

Total liabilities

 

 

570,327,000

 

 

 

576,926,000

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Preferred stock

 

 

159,541,000

 

 

 

159,541,000

 

Common stock and other shareholders' equity

 

 

238,787,000

 

 

 

277,841,000

 

Noncontrolling interests

 

 

1,494,000

 

 

 

2,586,000

 

Total equity

 

 

399,822,000

 

 

 

439,968,000

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

970,149,000

 

 

$

1,016,894,000

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 


 

 

CEDAR REALTY TRUST, INC.

Condensed Consolidated Statements of Operations

 

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

PROPERTY REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenues

 

$

8,367,000

 

 

$

10,603,000

 

 

$

16,443,000

 

 

$

21,445,000

 

Other

 

 

136,000

 

 

 

241,000

 

 

 

338,000

 

 

 

334,000

 

Total property revenues

 

 

8,503,000

 

 

 

10,844,000

 

 

 

16,781,000

 

 

 

21,779,000

 

PROPERTY OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating, maintenance and management

 

 

2,019,000

 

 

 

1,842,000

 

 

 

3,816,000

 

 

 

4,160,000

 

Real estate and other property-related taxes

 

 

1,526,000

 

 

 

1,822,000

 

 

 

2,768,000

 

 

 

3,680,000

 

Total property operating expenses

 

 

3,545,000

 

 

 

3,664,000

 

 

 

6,584,000

 

 

 

7,840,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY OPERATING INCOME

 

 

4,958,000

 

 

 

7,180,000

 

 

 

10,197,000

 

 

 

13,939,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER EXPENSES AND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

2,861,000

 

 

 

5,096,000

 

 

 

5,773,000

 

 

 

9,500,000

 

Depreciation and amortization

 

 

2,850,000

 

 

 

2,976,000

 

 

 

5,351,000

 

 

 

6,437,000

 

Gain on sales

 

 

-

 

 

 

(48,857,000

)

 

 

-

 

 

 

(48,857,000

)

Transaction costs

 

 

30,457,000

 

 

 

-

 

 

 

34,192,000

 

 

 

-

 

Impairment charges (reversal)

 

 

2,000

 

 

 

(1,849,000

)

 

 

199,000

 

 

 

(1,849,000

)

Total other expenses and income

 

 

36,170,000

 

 

 

(42,634,000

)

 

 

45,515,000

 

 

 

(34,769,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

(31,212,000

)

 

 

49,814,000

 

 

 

(35,318,000

)

 

 

48,708,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING INCOME AND EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(3,130,000

)

 

 

(3,803,000

)

 

 

(5,837,000

)

 

 

(7,982,000

)

Total non-operating income and expense

 

 

(3,130,000

)

 

 

(3,803,000

)

 

 

(5,837,000

)

 

 

(7,982,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME FROM CONTINUING OPERATIONS

 

 

(34,342,000

)

 

 

46,011,000

 

 

 

(41,155,000

)

 

 

40,726,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DISCONTINUED OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

7,698,000

 

 

 

5,453,000

 

 

 

13,946,000

 

 

 

10,944,000

 

Impairment charges

 

 

(16,119,000

)

 

 

-

 

 

 

(16,630,000

)

 

 

-

 

Gain on sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,047,000

 

Total (loss) income from discontinued operations

 

 

(8,421,000

)

 

 

5,453,000

 

 

 

(2,684,000

)

 

 

11,991,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME

 

 

(42,763,000

)

 

 

51,464,000

 

 

 

(43,839,000

)

 

 

52,717,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to noncontrolling interests

 

 

176,000

 

 

 

(409,000

)

 

 

196,000

 

 

 

(550,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(42,587,000

)

 

 

51,055,000

 

 

 

(43,643,000

)

 

 

52,167,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends

 

 

(2,688,000

)

 

 

(2,688,000

)

 

 

(5,376,000

)

 

 

(5,376,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

 

$

(45,275,000

)

 

$

48,367,000

 

 

$

(49,019,000

)

 

$

46,791,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(2.78

)

 

$

3.11

 

 

$

(3.49

)

 

$

2.51

 

Discontinued operations

 

 

(0.63

)

 

 

0.41

 

 

 

(0.20

)

 

 

0.90

 

 

 

$

(3.41

)

 

$

3.52

 

 

$

(3.69

)

 

$

3.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - basic and diluted

 

 

13,288,000

 

 

 

13,197,000

 

 

 

13,287,000

 

 

 

13,171,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 


 

 

CEDAR REALTY TRUST, INC.

Supporting Schedules to Consolidated Statements

 

 

Balance Sheets

 

June 30,

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1,742,000

 

 

$

3,972,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rents and other tenant receivables, net

 

$

6,833,000

 

 

$

7,242,000

 

 

 

 

 

 

 

 

 

Mortgage note and other receivable

 

 

3,500,000

 

 

 

3,500,000

 

 

 

 

 

 

 

 

 

Straight-line rents

 

 

2,765,000

 

 

 

2,838,000

 

 

 

 

 

 

 

 

 

 

 

$

13,098,000

 

 

$

13,580,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets and deferred charges, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease origination costs

 

$

4,368,000

 

 

$

4,711,000

 

 

 

 

 

 

 

 

 

Right-of-use assets

 

 

9,258,000

 

 

 

9,861,000

 

 

 

 

 

 

 

 

 

Prepaid expenses

 

 

3,258,000

 

 

 

7,255,000

 

 

 

 

 

 

 

 

 

Revolving credit facility issuance costs

 

 

927,000

 

 

 

1,134,000

 

 

 

 

 

 

 

 

 

Interest rate swap assets

 

 

3,176,000

 

 

 

-

 

 

 

 

 

 

 

 

 

Other

 

 

535,000

 

 

 

816,000

 

 

 

 

 

 

 

 

 

 

 

$

21,522,000

 

 

$

23,777,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

51,611,000

 

 

$

23,648,000

 

 

 

 

 

 

 

 

 

Right-of-use liabilities

 

 

9,670,000

 

 

 

10,219,000

 

 

 

 

 

 

 

 

 

Interest rate swap liabilities

 

 

20,000

 

 

 

8,232,000

 

 

 

 

 

 

 

 

 

 

 

$

61,301,000

 

 

$

42,099,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statements of Operations

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Rental revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Base rents

 

$

5,878,000

 

 

$

7,686,000

 

 

$

11,796,000

 

 

$

15,493,000

 

Expense recoveries

 

 

2,201,000

 

 

 

2,476,000

 

 

 

4,143,000

 

 

 

5,094,000

 

Percentage rent

 

 

146,000

 

 

 

122,000

 

 

 

269,000

 

 

 

363,000

 

Straight-line rents

 

 

(19,000

)

 

 

159,000

 

 

 

(87,000

)

 

 

171,000

 

Amortization of intangible lease liabilities, net

 

 

161,000

 

 

 

160,000

 

 

 

322,000

 

 

 

324,000

 

 

 

$

8,367,000

 

 

$

10,603,000

 

 

$

16,443,000

 

 

$

21,445,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 


 

 

CEDAR REALTY TRUST, INC.

Funds From Operations and Additional Disclosures

 

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net (loss) income attributable to common shareholders

 

$

(45,275,000

)

 

$

48,367,000

 

 

$

(49,019,000

)

 

$

46,791,000

 

Real estate depreciation and amortization

 

 

6,809,000

 

 

 

10,227,000

 

 

 

15,066,000

 

 

 

21,420,000

 

Limited partners' interest

 

 

(176,000

)

 

 

287,000

 

 

 

(196,000

)

 

 

278,000

 

Gain on sales

 

 

-

 

 

 

(48,857,000

)

 

 

-

 

 

 

(49,904,000

)

Impairment charges

 

 

16,121,000

 

 

 

(1,849,000

)

 

 

16,829,000

 

 

 

(1,849,000

)

Consolidated minority interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of income

 

 

-

 

 

 

122,000

 

 

 

-

 

 

 

272,000

 

Share of FFO

 

 

-

 

 

 

(88,000

)

 

 

-

 

 

 

(201,000

)

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

 

 

(22,521,000

)

 

 

8,209,000

 

 

 

(17,320,000

)

 

 

16,807,000

 

Adjustments for items affecting comparability:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction costs (a)

 

 

30,457,000

 

 

 

-

 

 

 

34,192,000

 

 

 

-

 

Redevelopment costs (b)

 

 

-

 

 

 

230,000

 

 

 

-

 

 

 

230,000

 

Financing costs (c)

 

 

-

 

 

 

44,000

 

 

 

-

 

 

 

44,000

 

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

 

$

7,936,000

 

 

$

8,483,000

 

 

$

16,872,000

 

 

$

17,081,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per diluted common share:

 

$

(1.64

)

 

$

0.59

 

 

$

(1.25

)

 

$

1.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating FFO per diluted common share:

 

$

0.58

 

 

$

0.61

 

 

$

1.22

 

 

$

1.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of diluted common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares and equivalents

 

 

13,703,000

 

 

 

13,855,000

 

 

 

13,728,000

 

 

 

13,845,000

 

OP Units

 

 

65,000

 

 

 

81,000

 

 

 

73,000

 

 

 

81,000

 

 

 

 

13,768,000

 

 

 

13,936,000

 

 

 

13,801,000

 

 

 

13,926,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional Disclosures (d):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line rents

 

$

(19,000

)

 

$

159,000

 

 

$

(87,000

)

 

$

171,000

 

Amortization of intangible lease liabilities

 

 

161,000

 

 

 

160,000

 

 

 

322,000

 

 

 

324,000

 

Non-real estate amortization

 

 

207,000

 

 

 

395,000

 

 

 

377,000

 

 

 

739,000

 

Share-based compensation, net

 

 

281,000

 

 

 

880,000

 

 

 

823,000

 

 

 

1,760,000

 

Maintenance capital expenditures (e) - includes held for sale properties

 

 

548,000

 

 

 

770,000

 

 

 

928,000

 

 

 

1,627,000

 

Lease related expenditures (f) - includes held for sale properties

 

 

3,511,000

 

 

 

2,866,000

 

 

 

6,244,000

 

 

 

5,169,000

 

Development and redevelopment capital expenditures - includes held for sale properties

 

 

7,144,000

 

 

 

3,184,000

 

 

 

15,583,000

 

 

 

7,020,000

 

Capitalized interest and financing costs

 

 

320,000

 

 

 

756,000

 

 

 

1,035,000

 

 

 

1,555,000

 

 

(a)

Includes costs in connection with the previously announced dual-track strategic alternatives process.

(b)

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

(c)

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

(d)

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.

(e)

Consists of payments for building and site improvements.

(f)

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 June 30,

 

 

Six months ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net (loss) income

 

$

(42,763,000

)

 

$

51,464,000

 

 

$

(43,839,000

)

 

$

52,717,000

 

Interest expense (d)

 

 

4,639,000

 

 

 

4,985,000

 

 

 

8,875,000

 

 

 

9,691,000