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Form 8-K CEDAR REALTY TRUST, INC. For: Nov 05

November 5, 2015 4:30 PM

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): November 5, 2015

 

 

Cedar Realty Trust, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Maryland   001-31817   42-1241468

(State or other jurisdiction

of incorporation)

 

(Commission

File No.)

 

(IRS Employer

Identification No.)

 

44 South Bayles Avenue

Port Washington, NY

  11050-3765
(Address of principal executive offices)   (Zip Code)

(516) 767-6492

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Items 2.02 and 7.01. Results of Operations and Financial Condition, and Regulation FD.

On November 5, 2015, Cedar Realty Trust, Inc. issued a press release announcing its comparative financial results as well as certain supplemental financial information for the three and nine months ended September 30, 2015. The press release and the supplemental financial information are furnished as Exhibit 99.1 and are incorporated herein by reference.

The information in this Current Report on Form 8-K is furnished under Item 2.02 – “Results of Operations and Financial Condition” and Item 7.01 – “Regulation FD Disclosure”. This information, including the exhibits attached hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act except as expressly set forth by specific reference in any such filing.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

 

  99.1 Cedar Realty Trust, Inc. Supplemental Financial Information at September 30, 2015 (including press release dated November 5, 2015).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

CEDAR REALTY TRUST, INC.

/s/ PHILIP R. MAYS

Philip R. Mays
Chief Financial Officer
(Principal financial officer)
Dated: November 5, 2015

Exhibit 99.1 

 

LOGO

SUPPLEMENTAL FINANCIAL INFORMATION

SEPTEMBER 30, 2015

 

Cedar Realty Trust, Inc.

44 South Bayles Avenue

Port Washington, NY 11050-3765

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

www.cedarrealtytrust.com

 

 



CEDAR REALTY TRUST, INC.

Supplemental Financial Information

September 30, 2015

(unaudited)

TABLE OF CONTENTS

 

Earnings Press Release 

     4-6   

Financial Information

  

Condensed Consolidated Balance Sheets

     7   

Condensed Consolidated Statements of Operations

     8   

Supporting Schedules to Consolidated Statements

     9   

Funds From Operations and Additional Disclosures

     10   

Earnings Before Interest, Taxes, Depreciation and Amortization

     11   

Summary of Outstanding Debt

     12   

Summary of Debt Maturities

     13   

Portfolio Information

  

Real Estate Summary

     14-16   

Leasing Activity

     17   

Tenant Concentration

     18   

Lease Expirations

     19   

Same-Property Net Operating Income

     20   

2015 Acquisitions and Dispositions

     21   

Summary of 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 and Section 21E of the Securities Exchange Act of 1934 and, as such, involve known and unknown risks, uncertainties and other factors which may cause actual results, performance and outcomes to differ materially from those expressed or implied in forward-looking statements. Factors which could cause actual results to differ materially from current expectations include, among others: adverse general economic conditions in the United States and uncertainty in the credit and retail markets; financing risks, such as the inability to obtain new financing or refinancing on favorable terms as the result of market volatility or instability; risks related to the market for retail space generally, including reductions in consumer spending, variability in retailer demand for leased space, tenant bankruptcies, adverse impact of internet sales demand, ongoing consolidation in the retail sector and changes in economic conditions and consumer confidence; risks endemic to real estate and the real estate industry generally; the impact of the Company’s level of indebtedness on operating performance; inability of tenants to meet their rent and other lease obligations; adverse impact of new technology and e-commerce developments on the Company’s tenants; competitive risk; risks related to the geographic concentration of the Company’s properties in the Washington D.C. to Boston corridor; the effects of natural and other disasters; and the inability of the Company to realize anticipated returns from its redevelopment activities. Please refer to the documents filed by Cedar Realty Trust, Inc. with the SEC, specifically the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as it may be updated or supplemented in the Company’s Quarterly Reports on Form 10-Q and the Company’s other filings with the SEC, which identify additional risk factors that could cause actual results to differ from those contained in forward-looking statements.

 

3


CEDAR REALTY TRUST REPORTS

THIRD QUARTER 2015 RESULTS

Port Washington, New York – November 5, 2015 – Cedar Realty Trust, Inc. (the Company) (NYSE: CDR) today reported financial and operating results for the third quarter ended September 30, 2015.

Operating Highlights

 

    Operating funds from operations (Operating FFO) of $0.14 per diluted share

 

    Same-property net operating income (NOI) increased 3.1% including redevelopments and 2.2% excluding redevelopments

 

    Signed 27 new and renewal leases for 154,100 square feet

 

    Comparable cash-basis lease spreads of 8.2%

 

    Total portfolio 93.3% leased and same-property portfolio 93.5% leased at quarter-end

 

    Raised low end of 2015 Operating FFO guidance to a new range of $0.53 to $0.54 per diluted share

“We are pleased to again report solid and consistent quarterly results which have permitted us to increase our Operating FFO guidance,” commented Bruce Schanzer, President and CEO.

Financial Results

Operating FFO for the third quarter of 2015 was $12.0 million or $0.14 per diluted share, compared to $10.8 million or $0.14 per diluted share for the same period in 2014. Operating FFO for the nine months ended September 30, 2015 was $34.1 million or $0.40 per diluted share, compared to $32.2 million or $0.41 per diluted share for the same period in 2014. NAREIT-defined FFO (FFO) for the third quarter of 2015 was $11.9 million or $0.14 per diluted share, compared to $10.8 million or $0.14 per diluted share for the same period in 2014. FFO for the nine months ended September 30, 2015 was $33.5 million or $0.39 per diluted share, compared to $30.6 million or $0.39 per diluted share for the same period in 2014. The principal differences between Operating FFO and FFO are acquisition costs and debt extinguishment amounts.

Net income attributable to common shareholders for the third quarter of 2015 was $2.6 million or $0.03 per diluted share, compared to $2.2 million or $0.03 per diluted share for the same period in 2014. Net income attributable to common shareholders for the nine months ended September 30, 2015 was $4.4 million or $0.05 per diluted share, compared to $13.8 million or $0.18 per diluted share for the same period in 2014. The principal differences in the comparative nine-month results are gain on sales of properties and impairment charges during the nine months ended September 30, 2014.

Portfolio Results

Same-property NOI for the third quarter of 2015 increased 3.1% including redevelopments and 2.2% excluding redevelopments, compared to the same period in 2014.

During the third quarter of 2015, the Company signed 27 leases for 154,100 square feet. On a comparable space basis, the Company leased 150,600 square feet at a positive lease spread of 8.2% on a cash basis (new leases increased 5.6% and renewals increased 9.0%). During the nine months ended September 30, 2015, the Company signed 104 leases for 649,100 square feet. On a comparable space basis, the Company leased 576,500 square feet at a positive lease spread of 8.0% on a cash basis (new leases increased 9.4% and renewals increased 7.7%).

 

4


The Company’s total portfolio, excluding properties held for sale, was 93.3% leased at September 30, 2015, compared to 93.2% at June 30, 2015 and 93.1% at September 30, 2014. The Company’s same-property portfolio was 93.5% leased at September 30, 2015, compared to 93.3% at June 30, 2015 and 93.9% at September 30, 2014.

2015 Guidance

The Company raised the low end and revised its 2015 guidance as follows:

 

     Revised Guidance      Previous Guidance  

Operating FFO per diluted common share

   $ 0.53 - $0.54       $ 0.52 - $0.54   

NAREIT-defined FFO per diluted common share

   $ 0.52 - $0.53       $ 0.51 - $0.53   

Quarterly Dividends

The Company will pay a cash dividend of $0.05 per share on the Company’s common stock and $0.453125 per share on the Company’s 7.25% Series B Cumulative Redeemable Preferred Stock on November 20, 2015 to shareholders of record as of the close of business on November 10, 2015.

Non-GAAP Financial Measures

NAREIT-defined FFO (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 in understanding financial performance and provides a relevant basis for comparison among REITs. The Company also presents Operating Funds From Operations (Operating FFO), which excludes certain items that are not indicative of the operating results provided by the Company’s core portfolio and that affect the comparability of the Company’s period-over-period performance. FFO and Operating FFO should not be considered as alternatives to net income attributable to common shareholders, the most directly comparable GAAP financial measure. A reconciliation of net income attributable to common shareholders to FFO and Operating FFO for the three and nine months ended September 30, 2015 and 2014 is detailed in the attached schedule.

Supplemental Financial Information Package

The Company has issued Supplemental Financial Information for the period ended September 30, 2015. 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/Webcast

The Company will host a conference call today, November 5, 2015, 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.

 

5


A replay of the call will be available from 8:00 PM (ET) on November 5, 2015 until midnight (ET) on November 19, 2015. The replay dial-in numbers are (877) 870-5176 or (1) (858) 384-5517 for international callers. Please use passcode 13620084 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. At September 30, 2015, the Company’s portfolio (excluding properties treated as “held for sale”) was comprised of 59 properties, with approximately 9.3 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

Statements made in this press release that are not strictly historical are “forward-looking” statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance and outcomes to differ materially from those expressed or implied in forward-looking statements. Factors which could cause actual results to differ materially from current expectations include, among others: adverse general economic conditions in the United States and uncertainty in the credit and retail markets; financing risks, such as the inability to obtain new financing or refinancing on favorable terms as the result of market volatility or instability; risks related to the market for retail space generally, including reductions in consumer spending, variability in retailer demand for leased space, tenant bankruptcies, adverse impact of internet sales demand, ongoing consolidation in the retail sector and changes in economic conditions and consumer confidence; risks endemic to real estate and the real estate industry generally; the impact of the Company’s level of indebtedness on operating performance; inability of tenants to meet their rent and other lease obligations; adverse impact of new technology and e-commerce developments on the Company’s tenants; competitive risk; risks related to the geographic concentration of the Company’s properties in the Washington D.C. to Boston corridor; the effects of natural and other disasters; and the inability of the Company to realize anticipated returns from its redevelopment activities. Please refer to the documents filed by Cedar Realty Trust, Inc. with the SEC, specifically the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as it may be updated or supplemented in the Company’s Quarterly Reports on Form 10-Q and the Company’s other filings with the SEC, which identify additional risk factors that could cause actual results to differ from those contained in forward-looking statements.

Contact Information:

Cedar Realty Trust, Inc.

Philip R. Mays

Chief Financial Officer

(516) 944-4572

 

6


CEDAR REALTY TRUST, INC.

Condensed Consolidated Balance Sheets

 

     September 30,
2015
    December 31,
2014
 

ASSETS

    

Real estate, at cost

   $ 1,504,400,000      $ 1,476,173,000   

Less accumulated depreciation

     (291,991,000     (267,211,000
  

 

 

   

 

 

 

Real estate, net

     1,212,409,000        1,208,962,000   

Real estate held for sale

     13,084,000        16,508,000   

Cash and cash equivalents

     2,217,000        3,499,000   

Restricted cash

     4,981,000        7,859,000   

Receivables

     19,881,000        18,405,000   

Other assets and deferred charges, net

     35,032,000        31,546,000   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 1,287,604,000      $ 1,286,779,000   
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Liabilities:

    

Mortgage loans payable

   $ 279,802,000      $ 393,388,000   

Unsecured revolving credit facility

     64,000,000        72,000,000   

Unsecured term loans

     300,000,000        200,000,000   

Accounts payable and accrued liabilities

     27,170,000        22,364,000   

Unamortized intangible lease liabilities

     22,019,000        23,776,000   
  

 

 

   

 

 

 

Total liabilities

     692,991,000        711,528,000   
  

 

 

   

 

 

 

Noncontrolling interest - limited partners’ mezzanine OP Units

     —          396,000   
  

 

 

   

 

 

 

Equity:

    

Preferred stock

     190,661,000        190,661,000   

Common stock and other shareholders’ equity

     402,340,000        378,891,000   

Noncontrolling interests

     1,612,000        5,303,000   
  

 

 

   

 

 

 

Total equity

     594,613,000        574,855,000   
  

 

 

   

 

 

 

TOTAL LIABILITIES AND EQUITY

   $ 1,287,604,000      $ 1,286,779,000   
  

 

 

   

 

 

 

 

7


CEDAR REALTY TRUST, INC.

Condensed Consolidated Statements of Operations

 

     Three months ended September 30,     Nine months ended September 30,  
     2015     2014     2015     2014  

PROPERTY REVENUES

        

Rents

   $ 29,209,000      $ 29,356,000      $ 87,367,000      $ 87,702,000   

Expense recoveries

     6,852,000        7,128,000        23,887,000        23,566,000   

Other

     39,000        15,000        223,000        251,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total property revenues

     36,100,000        36,499,000        111,477,000        111,519,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

PROPERTY OPERATING EXPENSES

        

Operating, maintenance and management

     5,071,000        5,811,000        19,072,000        20,282,000   

Real estate and other property-related taxes

     4,717,000        4,503,000        14,369,000        13,697,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total property operating expenses

     9,788,000        10,314,000        33,441,000        33,979,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

PROPERTY OPERATING INCOME

     26,312,000        26,185,000        78,036,000        77,540,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

OTHER EXPENSES AND INCOME

        

General and administrative

     3,696,000        3,316,000        11,267,000        10,620,000   

Acquisition costs

     —          —          499,000        2,870,000   

Depreciation and amortization

     9,642,000        9,665,000        28,871,000        28,806,000   

Gain on sales

     —          (2,332,000     —          (6,142,000

Impairment (reversals) / charges

     (127,000     1,250,000        1,106,000        3,063,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expenses and income

     13,211,000        11,899,000        41,743,000        39,217,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     13,101,000        14,286,000        36,293,000        38,323,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

NON-OPERATING INCOME AND EXPENSES

        

Interest expense

     (6,927,000     (8,216,000     (21,412,000     (24,411,000

Early extinguishment of debt costs

     (48,000     —          (105,000     (150,000
  

 

 

   

 

 

   

 

 

   

 

 

 

Total non-operating income and expense

     (6,975,000     (8,216,000     (21,517,000     (24,561,000
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME FROM CONTINUING OPERATIONS

     6,126,000        6,070,000        14,776,000        13,762,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

DISCONTINUED OPERATIONS

        

Income from operations

     —          80,000        12,000        1,579,000   

Impairment (charges) / reversals

     —          (441,000     153,000        (316,000

Gain on extinguishment of debt obligations

     —          —          —          1,423,000   

Gain on sales

     —          —          —          7,963,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total (loss) income from discontinued operations

     —          (361,000     165,000        10,649,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

     6,126,000        5,709,000        14,941,000        24,411,000   

Attributable to noncontrolling interests

     66,000        76,000        247,000        221,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.

     6,192,000        5,785,000        15,188,000        24,632,000   

Preferred stock dividends

     (3,602,000     (3,602,000     (10,806,000     (10,806,000
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

   $ 2,590,000      $ 2,183,000      $ 4,382,000      $ 13,826,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Continuing operations

   $ 0.03      $ 0.03      $ 0.05      $ 0.04   

Discontinued operations

     0.00        (0.00     0.00        0.14   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 0.03      $ 0.03      $ 0.05      $ 0.18   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares - basic and diluted

     81,598,000        75,547,000        81,268,000        75,233,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

8


CEDAR REALTY TRUST, INC.

Supporting Schedules to Consolidated Statements

 

Balance Sheets

   September 30,
2015
     December 31,
2014
 

Construction in process (included in buildings and improvements)

   $ 6,944,000       $ 11,032,000   
  

 

 

    

 

 

 

Receivables

     

Rents and other tenant receivables, net

   $ 4,533,000       $ 3,479,000   

Straight-line rents

     15,348,000         14,926,000   
  

 

 

    

 

 

 
   $ 19,881,000       $ 18,405,000   
  

 

 

    

 

 

 

Other assets and deferred charges, net

     

Lease origination costs

   $ 17,781,000       $ 18,180,000   

Financing costs

     5,604,000         4,256,000   

Prepaid expenses

     9,268,000         6,689,000   

Other

     2,379,000         2,421,000   
  

 

 

    

 

 

 
   $ 35,032,000       $ 31,546,000   
  

 

 

    

 

 

 

 

     Three months ended September 30,      Nine months ended September 30,  

Statements of Operations

   2015      2014      2015      2014  

Rents

           

Base rents

   $ 28,178,000       $ 27,840,000       $ 84,032,000       $ 83,205,000   

Percentage rent

     215,000         196,000         569,000         451,000   

Straight-line rents

     90,000         219,000         379,000         697,000   

Amortization of intangible lease liabilities, net

     726,000         1,101,000         2,387,000         3,349,000   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $  29,209,000       $  29,356,000       $  87,367,000       $  87,702,000   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

9


CEDAR REALTY TRUST, INC.

Funds From Operations and Additional Disclosures

 

     Three months ended September 30,     Nine months ended September 30,  
     2015     2014     2015     2014  

Net income attributable to common shareholders

   $ 2,590,000      $ 2,183,000      $ 4,382,000      $ 13,826,000   

Real estate depreciation and amortization

     9,592,000        9,583,000        28,676,000        28,553,000   

Limited partners’ interest

     11,000        8,000        19,000        76,000   

Impairment (reversals) / charges, net

     (127,000     1,691,000        953,000        3,379,000   

Gain on sales

     —          (2,332,000     —          (14,105,000

Consolidated minority interests:

        

Share of loss

     (77,000     (84,000     (266,000     (297,000

Share of FFO

     (70,000     (274,000     (238,000     (807,000
  

 

 

   

 

 

   

 

 

   

 

 

 

Funds From Operations (“FFO”) applicable to diluted common shares

     11,919,000        10,775,000        33,526,000        30,625,000   

Adjustments for items affecting comparability:

        

Early extinguishment of debt costs

     48,000        —          105,000        150,000   

Acquisition costs

     —          —          499,000        2,870,000   

Gain on extinguishment of debt obligations

     —          —          —          (1,423,000
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 11,967,000      $ 10,775,000      $ 34,130,000      $ 32,222,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

FFO per diluted common share:

   $ 0.14      $ 0.14      $ 0.39      $ 0.39   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating FFO per diluted common share:

   $ 0.14      $ 0.14      $ 0.40      $ 0.41   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of diluted common shares:

        

Common shares

     85,026,000        79,214,000        84,783,000        78,908,000   

OP Units

     375,000        395,000        387,000        447,000   
  

 

 

   

 

 

   

 

 

   

 

 

 
     85,401,000        79,609,000        85,170,000        79,355,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Additional Disclosures (Pro-Rata Share):

        

Straight-line rents

   $ 91,000      $ 222,000      $ 381,000      $ 716,000   

Amortization of intangible lease liabilities

     700,000        1,043,000        2,308,000        3,172,000   

Non-real estate amortization

     453,000        526,000        1,421,000        1,931,000   

Share-based compensation, net

     727,000        818,000        2,432,000        2,429,000   

Maintenance capital expenditures (a)

     435,000        1,483,000        1,219,000        2,345,000   

Lease related expenditures (b)

     1,741,000        586,000        2,915,000        1,988,000   

Development and redevelopment capital expenditures

     1,506,000        2,924,000        4,456,000        7,279,000   

Capitalized interest and financing costs

     92,000        195,000        336,000        597,000   

 

(a) Consists of payments for building and site improvements.
(b) Consists of payments for tenant improvements and leasing commissions.

 

10


CEDAR REALTY TRUST, INC.

Earnings Before Interest, Taxes, Depreciation and Amortization

 

     Three months ended September 30,     Nine months ended September 30,  
     2015     2014     2015     2014  

EBITDA Calculation

        

Income from continuing operations

   $ 6,126,000      $ 6,070,000      $ 14,776,000      $ 13,762,000   

Add (deduct):

        

Interest expense (including early extinguishment of debt costs)

     6,975,000        8,216,000        21,517,000        24,561,000   

Depreciation and amortization

     9,642,000        9,665,000        28,871,000        28,806,000   

Minority interests share of consolidated joint venture EBITDA

     (332,000     (793,000     (1,075,000     (2,347,000

Discontinued operations:

        

Income from operations

     —          80,000        12,000        1,579,000   

Interest expense

     —          —          —          631,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     22,411,000        23,238,000        64,101,000        66,992,000   

Adjustments for items affecting comparability:

        

Impairment (reversals) / charges, net

     (127,000     1,250,000        1,106,000        3,063,000   

Gain on sales

     —          (2,332,000     —          (6,142,000

Acquisition costs

     —          —          499,000        2,870,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 22,284,000      $ 22,156,000      $ 65,706,000      $ 66,783,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Pro-rata share of net debt (a)

        

Pro-rata share of debt

   $ 627,482,000      $ 653,543,000      $ 627,482,000      $ 653,543,000   

Pro-rata share of unrestricted cash and cash equivalents

     (2,062,000     (3,785,000     (2,062,000     (3,785,000
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 625,420,000      $ 649,758,000      $ 625,420,000      $ 649,758,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Pro-rata fixed charges (a)

        

Interest expense (b)

   $ 6,346,000      $ 7,420,000      $ 19,652,000      $ 22,353,000   

Preferred stock dividends

     3,602,000        3,602,000        10,806,000        10,806,000   

Scheduled mortgage repayments

     1,171,000        1,516,000        4,185,000        5,642,000   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 11,119,000      $ 12,538,000      $ 34,643,000      $ 38,801,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Debt and Coverage Ratios

        

Net debt to Adjusted EBITDA (c)

     7.0     7.4     7.1     7.6

Interest coverage ratio (based on Adjusted EBITDA)

     3.5     3.0     3.3     3.0

Fixed charge coverage ratio (based on Adjusted EBITDA)

     2.0     1.8     1.9     1.7

 

(a) Includes properties “held for sale”.
(b) Excludes early extinguishment of debt costs.
(c) For the purposes of this computation, this ratio has been adjusted to include the annualized results of properties acquired, and to exclude, where applicable, (i) the results and debt related to properties sold, and (ii) lease termination income.

 

11


CEDAR REALTY TRUST, INC.

Summary of Outstanding Debt

As of September 30, 2015

 

Property    Maturity
Date
     Interest
Rate
    Amounts  

Fixed-rate mortgages:

       

Franklin Village Plaza

     Aug 2016         4.1   $ 40,695,000   

West Bridgewater Plaza

     Sep 2016         6.2     10,153,000   

Carman’s Plaza

     Oct 2016         6.2     33,500,000   

Hamburg Square

     Oct 2016         6.1     4,653,000   

Meadows Marketplace

     Nov 2016         5.6     9,274,000   

San Souci Plaza (a)

     Dec 2016         6.2     27,200,000   

Camp Hill

     Jan 2017         5.5     61,744,000   

Golden Triangle

     Feb 2018         6.0     19,023,000   

Gold Star Plaza

     May 2019         7.3     1,085,000   

Swede Square

     Nov 2020         5.5     9,873,000   

Colonial Commons

     Feb 2021         5.5     25,861,000   

The Point

     Nov 2022         4.5     28,618,000   

Metro Square

     Nov 2029         7.5     7,791,000   
       

 

 

 

Total fixed-rate mortgages

     weighted average         5.5     279,470,000   

Net unamortized premium

          332,000   
       

 

 

 

Total mortgage debt, net

          279,802,000   
       

 

 

 

Unsecured debt:

       

Variable-rate (b):

       

Revolving credit facility (c)

     Feb 2019         1.5     64,000,000   

Term loan

     Feb 2020         1.6     50,000,000   

Fixed-rate (d):

       

Term loan

     Feb 2019         2.9     75,000,000   

Term loan

     Feb 2020         2.8     50,000,000   

Term loan

     Feb 2021         4.0     75,000,000   

Term loan

     Feb 2022         3.3     50,000,000   
       

 

 

 

Total unsecured debt

     weighted average         2.7     364,000,000   
       

 

 

 

Total debt

     weighted average         3.9   $ 643,802,000   
       

 

 

 

Pro-rata share of total debt reconciliation:

       

Total debt

        $ 643,802,000   

Less pro-rata share attributable to joint venture minority interest

          (16,320,000
       

 

 

 

Pro-rata share of total debt

        $ 627,482,000   
       

 

 

 

Fixed to variable rate debt ratio:

       

Fixed-rate debt

        81.8   $ 513,482,000   

Variable-rate debt

        18.2     114,000,000   
     

 

 

   

 

 

 
        100.0   $ 627,482,000   
     

 

 

   

 

 

 

 

(a) The Company has a 40% ownership interest in this joint venture.
(b) For variable-rate debt, rate in effect as of September 30, 2015.
(c) Subject to a one-year extension at the Company’s option.
(d) The interest rates on these term loans consist of LIBOR plus a credit spread based on the Company’s leverage ratio, for which the Company has interest rate swaps which convert the LIBOR rates to fixed rates. Accordingly, these term loans are presented as fixed-rate debt.

 

12


CEDAR REALTY TRUST, INC.

Summary of Debt Maturities

As of September 30, 2015

 

     Secured Debt      Unsecured Debt         

Year

   Scheduled
Amortization
     Balloon
Payments
     Revolving
Credit Facility
    Term
Loans
     Total  

2015

   $ 1,153,000       $ —         $ —        $ —         $ 1,153,000   

2016

     4,220,000         124,216,000         —          —           128,436,000   

2017

     2,439,000         60,478,000         —          —           62,917,000   

2018

     2,148,000         18,007,000         —          —           20,155,000   

2019

     2,036,000         —           64,000,000  (a)      75,000,000         141,036,000   

2020

     1,981,000         8,849,000         —          100,000,000         110,830,000   

2021

     1,244,000         22,367,000         —          75,000,000         98,611,000   

2022

     1,039,000         24,323,000         —          50,000,000         75,362,000   

Thereafter

     4,498,000         472,000         —          —           4,970,000   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 
   $ 20,758,000       $ 258,712,000       $ 64,000,000      $ 300,000,000         643,470,000   
  

 

 

    

 

 

    

 

 

   

 

 

    
        

 

Net unamortized premium

  

     332,000   
             

 

 

 
              $ 643,802,000   
             

 

 

 

 

(a) The revolving credit facility is subject to a one-year extension at the Company’s option.

 

13


CEDAR REALTY TRUST, INC.

Real Estate Summary

As of September 30, 2015

 

                       Average              
     Year           Percent     base rent per      Major Tenants (a)  

Property Description

   acquired    GLA      occupied     leased sq. ft.      Name    GLA  

Connecticut

                

Big Y Shopping Center

   2013      101,105         100.0   $ 22.84       Big Y      63,817   

Brickyard Plaza

   2004      227,193         85.4     8.69       Home Depot      103,003   
              Kohl’s      58,966   
              Michaels      21,429   

Groton Shopping Center

   2007      117,186         82.5     11.83       TJ Maxx      30,000   
              Goodwill      21,306   

Jordan Lane

   2005      177,504         87.7     11.27       Stop & Shop      60,632   
              Fallas      39,280   

New London Mall

   2009      259,566         94.4     15.17       Shop Rite      64,017   
              Marshalls      30,627   
              Home Goods      25,432   
              Petsmart      23,500   
              A.C. Moore      20,932   

Oakland Commons

   2007      90,100         100.0     6.37       Walmart      54,911   
              Bristol Ten Pin      35,189   

Southington Center

   2003      155,842         98.5     7.28       Walmart      95,482   
              NAMCO      20,000   
     

 

 

    

 

 

   

 

 

       

Total Connecticut

        1,128,496         91.8     11.87         
     

 

 

    

 

 

   

 

 

       

Maryland

                

Metro Square

   2008      71,896         100.0     19.48       Shoppers Food Warehouse      58,668   

Oakland Mills

   2005      58,224         100.0     14.05       Food Lion      43,470   

San Souci Plaza (b)

   2009      264,134         78.7     10.58       Shoppers Food Warehouse      61,466   
              Marshalls      27,000   
              Maximum Health and Fitness      15,612   

Valley Plaza

   2003      190,939         100.0     5.21       K-Mart      95,810   
              Ollie’s Bargain Outlet      41,888   
              Tractor Supply      32,095   

Yorktowne Plaza

   2007      158,982         86.2     13.75       Food Lion      37,692   
     

 

 

    

 

 

   

 

 

       

Total Maryland

        744,175         89.5     10.96         
     

 

 

    

 

 

   

 

 

       

Massachusetts

                

Fieldstone Marketplace

   2005/2012      193,970         94.0     10.66       Shaw’s      68,000   
              Flagship Cinema      41,975   
              New Bedford Wine and Spirits      15,180   

Franklin Village Plaza

   2004/2012      303,096         88.7     20.87       Stop & Shop      75,000   
              Marshalls      26,890   
              Team Fitness      15,807   

Kings Plaza

   2007      168,243         95.2     6.51       Work Out World      42,997   
              Fallas      28,504   
              Ocean State Job Lot      20,300   
              Savers      19,339   

Norwood Shopping Center

   2006      102,459         100.0     9.75       Hannaford Brothers      42,598   
              Planet Fitness      18,830   
              Dollar Tree      16,798   

The Shops at Suffolk Downs

   2005      121,320         98.8     13.66       Stop & Shop      74,977   

Timpany Plaza

   2007      183,775         98.9     7.49       Stop & Shop      59,947   
              Big Lots      28,027   
              Gardner Theater      27,576   

Webster Plaza

   2007      101,824         100.0     10.25       Price Chopper      58,545   

West Bridgewater Plaza

   2007      133,039         78.1     9.82       Shaw’s      57,315   
              Planet Fitness      15,000   
     

 

 

    

 

 

   

 

 

       

Total Massachusetts

        1,307,726         93.4     12.00         
     

 

 

    

 

 

   

 

 

       

 

14


CEDAR REALTY TRUST, INC.

Real Estate Summary (Continued)

As of September 30, 2015

 

                       Average              
     Year           Percent     base rent per      Major Tenants (a)  

Property Description

   acquired    GLA      occupied     leased sq. ft.      Name    GLA  

New Jersey

                

Carll’s Corner

   2007      129,582         84.7     8.85       Acme Markets      55,000   
              Peebles      18,858   

Pine Grove Plaza

   2003      86,089         95.1     11.21       Peebles      24,963   

Washington Center Shoppes

   2001      157,394         90.9     9.30       Acme Markets      66,046   
              Planet Fitness      20,742   
     

 

 

    

 

 

   

 

 

       

Total New Jersey

        373,065         89.7     9.62         
     

 

 

    

 

 

   

 

 

       

New York

                

Carman’s Plaza

   2007      194,082         75.6     19.56       Pathmark      52,211   
     

 

 

    

 

 

   

 

 

       
              Home Goods      25,806   
              Department of Motor Vehicle      19,310   

Pennsylvania

                

Academy Plaza

   2001      137,415         89.9     14.56       Acme Markets      50,918   

Camp Hill

   2002      464,765         98.3     14.35       Boscov’s      159,040   
              Giant Foods      92,939   
              LA Fitness      45,000   
              Orthopedic Inst of PA      40,904   
              Barnes & Noble      24,908   
              Staples      20,000   

Colonial Commons

   2011      461,914         90.0     14.02       Giant Foods      67,815   
              Dick’s Sporting Goods      56,000   
              LA Fitness      41,325   
              Ross Dress For Less      30,000   
              Marshalls      27,000   
              JoAnn Fabrics      25,500   
              David’s Furniture      24,970   
              Office Max      23,500   
              Old Navy      15,500   

Crossroads II (c)

   2008      133,717         93.9     20.11       Giant Foods      78,815   

Fairview Commons

   2007      52,964         70.4     10.79       Grocery Outlet      16,650   

Fort Washington Center

   2002      41,000         100.0     21.83       LA Fitness      41,000   

Gold Star Plaza

   2006      71,720         93.3     8.73       Redner’s      48,920   

Golden Triangle

   2003      202,943         94.6     12.84       LA Fitness      44,796   
              Marshalls      30,000   
              Staples      24,060   
              Just Cabinets      18,665   
              Aldi      15,242   

Halifax Plaza

   2003      51,510         100.0     12.69       Giant Foods      32,000   

Hamburg Square

   2004      99,580         95.2     6.47       Redner’s      56,780   
              Peebles      19,683   

Lawndale Plaza

   2015      93,040         97.7     18.23       Shop Rite      63,342   

Maxatawny Marketplace

   2011      58,339         100.0     12.21       Giant Foods      53,914   

Meadows Marketplace

   2004/2012      91,518         100.0     15.72       Giant Foods      67,907   

Mechanicsburg Center

   2005      51,500         100.0     22.57       Giant Foods      51,500   

Newport Plaza

   2003      64,489         100.0     11.81       Giant Foods      43,400   

Northside Commons

   2008      69,136         100.0     10.10       Redner’s      53,019   

Palmyra Shopping Center

   2005      111,051         89.9     7.00       Weis Markets      46,912   
              Goodwill      18,104   

Port Richmond Village

   2001      154,908         87.0     13.98       Thriftway      40,000   
              Pep Boys      20,615   

Quartermaster Plaza

   2014      456,602         93.4     14.55       Home Depot      150,000   
              BJ’s Wholesale Club      117,718   
              Planet Fitness      23,146   
              Staples      20,388   
              Petsmart      19,089   

 

15


CEDAR REALTY TRUST, INC.

Real Estate Summary (Continued)

As of September 30, 2015

 

                         Average              
     Year             Percent     base rent per     

Major Tenants (a)

 

Property Description

   acquired      GLA      occupied     leased sq. ft.     

Name

   GLA  

Pennsylvania (continued)

                

River View Plaza

     2003         226,786         90.2     19.84       United Artists      77,700   
              Avalon Carpet      25,000   
              Pep Boys      22,000   
              Staples      18,000   

South Philadelphia

     2003         283,415         74.9     14.71       Shop Rite      54,388   
              Ross Dress For Less      31,349   
              LA Fitness      31,000   
              Modell’s      20,000   

Swede Square

     2003         100,816         97.0     17.49       LA Fitness      37,200   

The Commons

     2004         203,426         88.9     8.30       Bon-Ton      54,500   
              Shop ‘n Save      52,654   
              TJ Maxx      24,404   

The Point

     2000         268,037         99.0     12.62       Burlington Coat Factory      76,665   
              Giant Foods      76,627   
              A.C. Moore      24,890   
              Staples      24,000   

Trexler Mall

     2005         337,297         95.6     9.67       Kohl’s      88,248   
              Bon-Ton      62,000   
              Lehigh Wellness Partners      33,227   
              Oxyfit Gym      28,870   
              Marshalls      28,488   
              Home Goods      28,181   

Trexlertown Plaza

     2006         319,529         88.0     12.54       Giant Foods      78,335   
              Hobby Lobby      57,512   
              Redner’s      47,900   
              Big Lots      33,824   
              Tractor Supply      19,097   

Upland Square

     2007         394,598         92.6     17.86       Giant Foods      78,900   
              Carmike Cinema      45,276   
              LA Fitness      42,000   
              Best Buy      30,000   
              TJ Maxx      25,000   
              Bed, Bath & Beyond      24,721   
              A.C. Moore      21,600   
              Staples      18,336   
     

 

 

    

 

 

   

 

 

       

Total Pennsylvania

        5,002,015         92.4     13.94         
     

 

 

    

 

 

   

 

 

       

Virginia

                

Coliseum Marketplace

     2005         106,648         100.0     16.67       Farm Fresh      57,662   
              Michaels      23,981   

Elmhurst Square

     2006         66,250         89.0     9.86       Food Lion      38,272   

Fredericksburg Way

     2005         63,000         100.0     19.58       Ukrop’s Supermarket      63,000   

General Booth Plaza

     2005         71,639         95.0     13.89       Farm Fresh      53,758   

Glen Allen Shopping Center

     2005         63,328         100.0     7.14       Giant Foods      63,328   

Kempsville Crossing

     2005         79,512         92.7     11.08       Walmart      41,975   
              Farm Fresh      16,938   

Oak Ridge Shopping Center

     2006         38,700         92.2     10.79       Food Lion      33,000   

Suffolk Plaza

     2005         67,216         100.0     9.90       Farm Fresh      67,216   
     

 

 

    

 

 

   

 

 

       

Total Virginia

        556,293         96.5     12.78         
     

 

 

    

 

 

   

 

 

       

Total (93.3% leased at September 30, 2015)

        9,305,852         92.0   $ 13.04         
     

 

 

    

 

 

   

 

 

       

 

(a)    Major tenants are determined as tenants with 15,000 or more sq.ft of GLA, tenants at single-tenant properties, or the largest tenant at a property, based on GLA.

(b)    The Company has a 40% ownership interest in this joint venture.

(c)    Although the ownership percentage for this joint venture is 60%, the Company has included 100% of this joint venture’s debt and results of operations in its pro-rata calculations, based on partnership earnings promotes, loan guaranties, and/or other terms of the related joint venture agreement.

        

       

         

 

16


CEDAR REALTY TRUST, INC.

Leasing Activity

 

     Leases
Signed
     Square
Feet
     New Rent
Per. Sq. Ft (a)
     Prior Rent
Per. Sq. Ft (a)
     Cash Basis
% Change
    Tenant
Improvements
Per. Sq. Ft (b)
     Average
Lease
Term (Yrs)
 

Total Comparable Leases

                   

3rd Quarter 2015

     26         150,600       $ 14.12       $ 13.04         8.2   $ 4.06         5.5   

2nd Quarter 2015

     41         140,400       $ 19.21       $ 17.85         7.7   $ 3.54         4.1   

1st Quarter 2015

     30         285,500       $ 9.65       $ 8.91         8.3   $ 4.67         5.4   

4th Quarter 2014

     30         224,600       $ 16.26       $ 14.74         10.3   $ 3.11         5.3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total

     127         801,100       $ 14.02       $ 12.89         8.8   $ 3.92         5.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

New Leases - Comparable

                   

3rd Quarter 2015

     6         35,100       $ 12.93       $ 12.24         5.6   $ 17.42         8.8   

2nd Quarter 2015

     12         25,900       $ 17.93       $ 16.33         9.8   $ 19.17         6.3   

1st Quarter 2015

     8         53,800       $ 11.43       $ 10.20         12.1   $ 24.80         7.8   

4th Quarter 2014

     3         20,600       $ 17.27       $ 15.29         12.9   $ 33.94         7.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total

     29         135,400       $ 13.95       $ 12.67         10.1   $ 23.19         7.7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Renewals - Comparable

                   

3rd Quarter 2015

     20         115,500       $ 14.48       $ 13.29         9.0   $ 0.00         4.5   

2nd Quarter 2015

     29         114,500       $ 19.50       $ 18.19         7.2   $ 0.00         3.6   

1st Quarter 2015

     22         231,700       $ 9.24       $ 8.61         7.3   $ 0.00         4.8   

4th Quarter 2014

     27         204,000       $ 16.16       $ 14.68         10.0   $ 0.00         5.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total

     98         665,700       $ 14.03       $ 12.93         8.5   $ 0.00         4.7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total Comparable and Non-Comparable

                   

3rd Quarter 2015

     27         154,100       $ 14.54         N/A         N/A      $ 3.97         5.6   

2nd Quarter 2015

     44         182,100       $ 16.85         N/A         N/A      $ 9.28         5.1   

1st Quarter 2015

     33         312,900       $ 10.03         N/A         N/A      $ 4.26         5.9   

4th Quarter 2014

     31         232,800       $ 16.38         N/A         N/A      $ 3.00         5.5   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total

     135         881,900       $ 13.90         N/A         N/A      $ 4.91         5.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

 

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

 

17


CEDAR REALTY TRUST, INC.

Tenant Concentration (Based on Annualized Base Rent)

As of September 30, 2015

 

     Number                          Annualized      Percentage  
     of                   Annualized      base rent      annualized  

Tenant

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

Top twenty tenants (a):

                

Giant Foods

     12         785,000         8.4   $ 11,736,000       $ 14.95         10.5

LA Fitness

     7         282,000         3.0     4,732,000         16.78         4.2

Shop Rite

     3         182,000         2.0     2,945,000         16.18         2.6

Stop & Shop

     4         271,000         2.9     2,815,000         10.39         2.5

Farm Fresh

     4         196,000         2.1     2,264,000         11.55         2.0

Home Depot

     2         253,000         2.7     2,101,000         8.30         1.9

Staples

     6         125,000         1.3     2,040,000         16.32         1.8

Dollar Tree

     19         190,000         2.0     2,019,000         10.63         1.8

BJ’s Wholesale Club

     1         118,000         1.3     1,683,000         14.26         1.5

Redner’s

     4         207,000         2.2     1,538,000         7.43         1.4

United Artists

     1         78,000         0.8     1,454,000         18.64         1.3

Marshalls

     6         170,000         1.8     1,437,000         8.45         1.3

Shaw’s

     2         125,000         1.3     1,431,000         11.45         1.3

Big Y

     1         64,000         0.7     1,404,000         21.94         1.3

Shoppers Food Warehouse

     2         120,000         1.3     1,267,000         10.56         1.1

Ukrop’s Supermarket

     1         63,000         0.7     1,233,000         19.57         1.1

Walmart

     3         192,000         2.1     1,193,000         6.21         1.1

Food Lion

     4         152,000         1.6     1,118,000         7.36         1.0

Kohl’s

     2         147,000         1.6     1,113,000         7.57         1.0

Carmike Cinema

     1         45,000         0.5     1,034,000         22.98         0.9
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Sub-total top twenty tenants

     85         3,765,000         40.5     46,557,000         12.37         41.7

Remaining tenants

     772         4,798,000         51.6     65,095,000         13.57         58.3
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Sub-total all tenants (b)

     857         8,563,000         92.0   $ 111,652,000       $ 13.04         100.0
          

 

 

    

 

 

    

 

 

 

Vacant space

     N/A         743,000         8.0        
  

 

 

    

 

 

    

 

 

         

Total

     857         9,306,000         100.0        
  

 

 

    

 

 

    

 

 

         

 

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

(1) Giant Foods and Stop & Shop, (2) Farm Fresh, Shoppers Food Warehouse, and Shop ‘n Save (GLA of 53,000; annualized base rent of $120,000), (3) Dollar Tree and Family Dollar (GLA of 56,000; annualized base rent of $525,000), (4) Marshalls, TJ Maxx (GLA of 79,000; annualized base rent of $764,000) and Home Goods (GLA of 79,000; annualized base rent of $834,000), (5) Shaw’s and Acme Markets (GLA of 172,000; annualized base rent of $781,000), and (6) Food Lion and Hannaford Brothers (GLA of 43,000; annualized base rent of $522,000).

(b) Comprised of large tenants (15,000 or more GLA) and small tenants as follows:

 

     Occupied
GLA
     %
of GLA
    Annualized
base rent
     Annualized
base rent

per sq. ft.
     Percentage
annualized

base rents
 

Large tenants

     6,023,000         70.3   $ 65,349,000       $ 10.85         58.5

Small tenants

     2,540,000         29.7     46,303,000         18.23         41.5
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

     8,563,000         100.0   $ 111,652,000       $ 13.04         100.0
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

18


CEDAR REALTY TRUST, INC.

Lease Expirations

As of September 30, 2015

 

Year of lease

expiration

   Number
of leases
expiring
     GLA
expiring
     Percentage
of GLA
expiring
    Annualized
expiring base

rents
     Annualized
expiring base
rents per sq. ft.
     Percentage
of annualized
expiring

base rents
 

Month-To-Month

     55         287,000         3.4   $ 3,468,000       $ 12.08         3.1

2015

     26         267,000         3.1     2,316,000         8.67         2.1

2016

     130         701,000         8.2     9,528,000         13.59         8.5

2017

     118         843,000         9.8     11,784,000         13.98         10.6

2018

     109         896,000         10.5     13,464,000         15.03         12.1

2019

     113         935,000         10.9     11,436,000         12.23         10.2

2020

     119         1,482,000         17.3     16,968,000         11.45         15.2

2021

     53         647,000         7.6     8,580,000         13.26         7.7

2022

     27         197,000         2.3     2,964,000         15.05         2.7

2023

     19         154,000         1.8     1,788,000         11.61         1.6

2024

     27         520,000         6.1     7,152,000         13.75         6.4

2025

     22         470,000         5.5     6,576,000         13.99         5.9

Thereafter

     39         1,164,000         13.6     15,628,000         13.41         14.0
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

All tenants

     857         8,563,000         100.0   $ 111,652,000       $ 13.04         100.0
          

 

 

    

 

 

    

 

 

 

Vacant space

     N/A         743,000         N/A           
  

 

 

    

 

 

    

 

 

         

Total portfolio

     857         9,306,000         N/A           
  

 

 

    

 

 

    

 

 

         

 

19


CEDAR REALTY TRUST, INC.

Same-Property Net Operating Income (“Same-property NOI”)

Same-Property NOI (a)

 

     Three months ended September 30,  
     2015     2014  

Base Rents

   $ 24,347,000      $ 23,925,000   

Expense Recoveries

     5,995,000        6,265,000   
  

 

 

   

 

 

 

Total Revenues

     30,342,000        30,190,000   

Operating expenses

     8,357,000        8,677,000   
  

 

 

   

 

 

 

NOI

   $ 21,985,000      $ 21,513,000   
  

 

 

   

 

 

 

Occupied

     92.5     93.7

Leased

     93.5     93.9

Average base rent

   $ 13.19      $ 12.96   

Number of same properties

     53        53   

NOI growth

     2.2%   
     Nine months ended September 30,  
     2015     2014  

Base Rents

   $ 67,917,000      $ 67,180,000   

Expense Recoveries

     19,831,000        19,737,000   
  

 

 

   

 

 

 

Total Revenues

     87,748,000        86,917,000   

Operating expenses

     26,624,000        27,026,000   
  

 

 

   

 

 

 

NOI

   $ 61,124,000      $ 59,891,000   
  

 

 

   

 

 

 

Occupied

     92.4     93.5

Leased

     93.9     93.7

Average base rent

   $ 13.11      $ 12.80   

Number of same properties

     52        52   

NOI growth

     2.1%   

 

(a) Same-property NOI includes properties that were 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”. Same-property NOI (i) excludes non-cash revenues such as straight-line rent adjustments and amortization of intangible lease liabilities, (ii) reflects internal management fees charged to properties, and (iii) excludes infrequent items, such as lease termination fee income.

 

20


CEDAR REALTY TRUST, INC.

2015 Acquisitions and Dispositions

 

Acquisitions

   Location    GLA      Date
Acquired
     Purchase
Price
 

New London Mall (a)

   New London, CT      259,566         1/23/2015       $ 27,314,000   

Lawndale Plaza

   Philadelphia, PA      93,040         2/27/2015         25,189,000   
           

 

 

 
            $ 52,503,000   
           

 

 

 

Dispositions

   Location    GLA      Date
Sold
     Sales
Price
 

Huntingdon Plaza

   Huntingdon, PA      142,845         2/2/2015       $ 2,200,000   

Kenley Village

   Hagerstown, MD      51,894         5/28/2015         2,275,000   

Circle Plaza

   Shamokin Dam, PA      92,171         7/22/2015         1,800,000   
           

 

 

 
            $ 6,275,000   
           

 

 

 

 

(a) Represents the acquisition of the remaining 60% ownership interest, giving the Company a 100% ownership interest in this property.

 

21


CEDAR REALTY TRUST, INC.

Summary of Real Estate Held for Sale

As of September 30, 2015

 

Property Description

   State      Percent
owned
    Real estate
at book
value
     GLA      Percent
occupied
    Average
base rent per
leased sq. ft.
 

Included in results from Continuing Operations

               

Liberty Marketplace

     PA         100   $ 13,084,000         68,200         98.2   $ 18.05   

 

22


CEDAR REALTY TRUST, INC.

Non-GAAP Financial Disclosures

Funds From Operations (“FFO”) and Operating Funds From Operations (“Operating FFO”)

FFO is a widely recognized supplemental non-GAAP measure utilized to evaluate the financial performance of a REIT. The Company presents FFO in accordance with the definition adopted by the National Association of Real Estate Investments Trusts (“NAREIT”). NAREIT generally defines FFO as net income attributable to common shareholders (determined in accordance with GAAP), excluding gains (losses) from sales of real estate properties, impairment provisions on real estate properties, plus real estate related depreciation and amortization, and adjustments for partnerships and joint ventures to reflect FFO on the same basis. The Company considers 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 costs, amounts relating to early extinguishment of debt and preferred stock redemption 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.

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. FFO and Operating FFO do not represent cash generated from operating activities and should not be considered as an alternative to net income attributable to common shareholders or to cash flow from operating activities. The Company’s computations of FFO and Operating FFO may differ from the computations utilized by other REITs and, accordingly, may not be comparable to such REITs.

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

EBITDA is a widely recognized supplemental non-GAAP financial measure. The Company computes EBITDA as net income from continuing operations, plus interest expense (including early extinguishment of debt costs), depreciation and amortization, minority interests share of consolidated joint venture EBITDA and discontinued operations. The Company believes EBITDA provides additional information with respect to the Company’s performance and ability to meet its future debt service requirements.

The Company also considers Adjusted EBITDA 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 costs and impairment provisions. The Company believes Adjusted EBITDA further assists in comparing the Company’s performance across reporting periods on a consistent basis by excluding such items.

EIBITDA and Adjusted EBITDA should be reviewed with GAAP net income from continuing operations, the most directly comparable GAAP financial measure, when trying to understand the Company’s operating performance. EBITDA and Adjusted EBITDA 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 computations of EBITDA and Adjusted EBITDA may differ from the computations utilized by other companies and, accordingly, may not be comparable to such companies.

 

23

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