Welcome!

Microsoft Cloud Authors: Janakiram MSV, Yeshim Deniz, David H Deans, Andreas Grabner, Stackify Blog

News Feed Item

Cedar Realty Trust, Inc. Reports Third Quarter 2012 Results

PORT WASHINGTON, N.Y., Nov. 8, 2012 /PRNewswire/ -- Cedar Realty Trust, Inc. (NYSE: CDR) today reported its financial results for the third quarter ended September 30, 2012.

Highlights

  • Third quarter operating FFO of $0.11 per diluted share
  • Increased low end of 2012 Operating FFO guidance to an updated range of $0.48 to $0.50 per diluted share
  • Reduced cost of capital with additional issuance of 7.25% Series B Preferred Stock and redemption of 8.875% Series A Preferred Stock
  • Exited from joint ventures with RioCan and Homburg

Bruce Schanzer, President and CEO of Cedar, commented, "On this, the first anniversary of the introduction of the new Cedar Realty Trust, we are gratified by the progress we have made in executing our near-term strategic objectives.  We have meaningfully lowered our cost of capital and leverage.  We have only two improved assets and three small land parcels remaining to be placed under contract from the original 50 assets we identified for divestiture.  We have exited from both our RioCan and Homburg joint ventures, retaining three attractive wholly-owned shopping centers with significant upside.  Lastly, we have reduced our overhead, thereby positioning ourselves to operate more efficiently in the coming years.  We have achieved all this while maintaining our earnings and improving operations.  We look to the future with great confidence, as we continue executing on value-creation opportunities within our high-quality primarily grocer-anchored Washington, DC to Boston shopping center portfolio and underwriting select capital recycling opportunities that improve our average asset quality."

Financial Results

Operating FFO for third quarter 2012 was $8.3 million or $0.11 per diluted share, compared to $8.2 million or $0.12 per diluted share for the same period in 2011. Operating FFO for nine months ended September 30, 2012 was $27.4 million or $0.38 per diluted share, compared to $25.6 million or $0.37 per diluted share for the same period in 2011. Operating FFO for the nine months ended September 30, 2012 included $3.4 million of income ($3.0 million termination fee and $0.4 million accelerated amortization of an intangible lease liability) in connection with replacing the dark anchor at the Company's Oakland Commons center in Bristol, Connecticut.

Net loss attributable to common shareholders for third quarter 2012 was $(4.3) million or $(0.07) per diluted share, compared to a net loss of $(70.1) million or $(1.05) per diluted share in 2011. Net loss attributable to common shareholders for nine months ended September 30, 2012 was $(12.4) million or $(0.19) per diluted share, compared to a net loss of $(110.1) million or $(1.67) per diluted share in 2011. Net loss for third quarter and nine months ended September 30, 2012 included $1.1 million of management transition charges and employee termination costs. Further, net loss for nine months ended September 30, 2012 included a $2.6 million accelerated write-off of deferred financing costs in connection with the Company obtaining a new credit facility, and was reduced by $3.4 million of income related to replacing the dark anchor at Oakland Commons. Net loss for third quarter and nine months ended September 30, 2011 included impairment charges, management transition charges and employee termination costs, and the write-off of a joint venture interest, aggregating $68.6 million and $105.6 million, respectively.

Portfolio Results

Leasing

In the third quarter 2012, the Company signed 27 renewal leases for approximately 153,000 square feet with an average increase in base rents of 8.5% on a cash basis. The Company also signed 10 new leases for approximately 31,000 square feet at an average base rent of $16.45 per square foot. The average base rent on new leases was $4.81 per square foot above the $11.64 average rent per square foot in the Company's consolidated portfolio.

Occupancy

At September 30, 2012, the Company's consolidated portfolio was 92.1% leased and 90.9% occupied. This compares to occupancy of 90.2% at June 30, 2012 and 91.2% at September 30, 2011. Occupancy for the Company's same-center portfolio was 92.5% at September 30, 2012 compared to 92.5% at June 30, 2012 and 93.1% at September 30, 2011. The decreases in occupancy from September 30, 2011 reflect the termination of the dark anchor at Oakland Commons to prepare for the opening of a Walmart Neighborhood Market.

Same-Property Results

Same-property cash NOI for the third quarter 2012 compared to the third quarter 2011 increased 1.2% excluding the timing impact of replacing the dark anchor at Oakland Commons.  Including the down time impact prior to Walmart Neighborhood Market taking possession of this dark anchor space, cash NOI increased 0.1%.  

Preferred Stock

In September 2012, the Company completed a public offering of an additional 4.8 million shares of its 7.25% Series B Cumulative Redeemable Preferred Stock (including 0.6 million shares related to the exercise of the underwriters' overallotment option). The issue was priced at $23.9366 per share resulting in gross proceeds of approximately $115.6 million.

In addition, in October 2012, the Company redeemed an additional 4.5 million shares of its 8.875% Series A Cumulative Redeemable Preferred Stock at the stated $25.00 redemption price for a total cash outlay of approximately $114.1 million.

Exit From Joint Venture With RioCan

On October 10, 2012, the Company exited from its 22 property joint venture with RioCan Real Estate Investment Trust ("RioCan"). Pursuant to the terms of the transaction, the Company exchanged its 20% interest in the joint venture for a 100% ownership interest in Franklin Village, located in Franklin, Massachusetts, and approximately $40.0 million in cash. The Company will continue to manage the properties acquired by RioCan until January 31, 2013.

After initially reducing the outstanding balance under its Credit facility, the Company plans to use the approximate $40.0 million of proceeds to prepay, during the latter part of 2012 through February 1, 2013, certain property-specific mortgage loans. Such property-specific loans have a weighted-average interest rate of 6.5% per annum and can be prepaid without penalty.

In advance of the termination of the management of the RioCan-owned properties, the Company has proactively begun implementing certain cost reduction measures. Such measures include employee headcount reductions of approximately $1.5 million per year, which will be effective beginning in the fourth quarter of 2012. Additionally, the Company has identified approximately $0.5 million to $1.0 million per year of other overhead reductions, which will become effective over the first half of 2013.

Other Subsequent Events

On October 12, 2012, the Company concluded the previously-disclosed buy/sell arrangements applicable to its joint venture with Homburg Invest Inc. ("HII") that owned nine retail properties. Pursuant to the terms of the transaction, the Company acquired HII's 80% ownerships in Meadows Marketplace, located in Hershey, Pennsylvania, and Fieldstone Marketplace, located in New Bedford, Massachusetts, and sold to HII its 20% ownership interests in the remaining seven joint venture properties. The Company's property management agreements for the sold properties terminated upon closing.

On October 19, 2012, the Company placed a first mortgage on The Point Shopping Center and realized net proceeds of approximately $30 million, which was utilized to reduce the outstanding balance under its Credit Facility. The loan is due in November 2022, bears interest at 4.5% per annum, and has principal payments based on a 30-year amortization schedule.

After applying the net proceeds from RioCan and the mortgage financing at The Point Shopping Center, less the funding of the Series A Preferred Stock redemptions, the Company had availability under its Credit Facility of approximately $100 million.

2012 Guidance

The Company has increased the low end of its 2012 Operating FFO guidance to an updated range of $0.48 to $0.50 per diluted share.

Funds From Operations Reconciliation

The Company reports FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO is a widely-recognized non-GAAP financial measure for REITs that the Company believes, when considered with financial statements prepared in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. The Company's computation of FFO, as detailed in the attached schedule, is in accordance with NAREIT's pronouncements. The Company also presents "Operating FFO", which excludes certain items that are not indicative of the results provided by the Company's consolidated portfolio and that affect the comparability of the Company's period-over-period performance, as also detailed in the attached schedule.

Supplemental Financial Information Package

The Company has issued "Supplemental Financial Information" for the period ended September 30, 2012. 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.  

Investor Conference Call

The Company will host a conference call today, November 8, 2012, at 5:00 PM (ET) to discuss the third quarter results. The conference call can be accessed by dialing (877) 705-6003 or (1) (201) 493-6725 for international participants. A live webcast of the conference call will be available online on the Company's website at www.cedarrealtytrust.com.

A replay of the call will be available from 8:00 PM (ET) on November 8, 2012, until midnight (ET) on November 22, 2012. The replay dial-in numbers are (877) 870-5176 or (1) (858) 384-5517 for international callers. Please use passcode 403187 for the telephonic replay. A replay of the Company's webcast will be available on the Company's website for a limited time.

About Cedar Realty Trust

Cedar Realty Trust, Inc. is a fully-integrated real estate investment trust which focuses on the ownership and operation of primarily grocery-anchored shopping centers straddling the Washington DC to Boston corridor. The Company's portfolio (excluding properties treated as "held for sale") is comprised of 68 properties, with approximately 10 million square feet of GLA.

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.

Reference to Form 10-Q

For further details, interested parties are urged to review the Form 10-Q for the quarter ended September 30, 2012 filed today with the Securities and Exchange Commission. The Form 10-Q will also be available on the Company's website at www.cedarrealtytrust.com.  

Forward-Looking Statements

Statements made or incorporated by reference in this press release may include certain "forward-looking statements", which are based on certain assumptions and describe the Company's future plans, strategies and expectations 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. 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 for the year ended December 31, 2011. Accordingly, the information contained herein should be read in conjunction with that report.

The following is a reconciliation of net (loss) attributable to common shareholders to FFO and Operating FFO for the three and nine months ended September 30, 2012 and 2011:

CEDAR REALTY TRUST, INC.

Reconciliation of Net (Loss) Attributable to Common Shareholders to Funds From Operations

and Operating Funds From Operations










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

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

Operating Funds From Operations ("Operating FFO")

$    8,263,000


$    8,206,000


$   27,437,000


$    25,643,000









FFO per diluted share:

$             0.09


$             0.12


$              0.32


$               0.26









Operating FFO per diluted share:

$             0.11


$             0.12


$              0.38


$               0.37









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


72,074,000


71,174,000


71,679,000


69,783,000









 

SOURCE Cedar Realty Trust, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics gr...