Cedar Realty Trust Reports First Quarter 2016 Results
PORT WASHINGTON, N.Y., May 5, 2016 /PRNewswire/ -- Cedar Realty Trust, Inc. (NYSE: CDR) today reported results for the first quarter ended March 31, 2016.
Highlights
- Operating funds from operations (Operating FFO) of $0.14 per diluted share
- Same-property net operating income (NOI) increased 1.3%
- Signed 64 new and renewal leases for 345,900 square feet
- Comparable cash-basis lease spreads of 8.7%
- Total portfolio 91.6% leased and same-property portfolio 92.0% leased at quarter-end
- On February 11, 2016, the Company sold Liberty Marketplace located in Dubois, Pennsylvania for $15.0 million
- On February 25, 2016, the Company acquired Shoppes at Arts District located in Hyattsville, Maryland for $20.5 million
Previously-Announced and Subsequent Events
- On March 17, 2016, Steven G. Rogers was appointed to the Board of Directors as an independent director
- On March 31, 2016, Robin McBride Zeigler joined the Company as Chief Operating Officer
- On April 26, 2016, the Company closed on a $100.0 million seven-year unsecured term loan with proceeds to be drawn by October 26, 2016
- On May 3, 2016, the Company refinanced its existing $40.3 million mortgage loan payable secured by Franklin Village Plaza with a new $50.0 million mortgage loan payable maturing on June 1, 2026
- On May 4, 2016, the Company acquired Glenwood Village located in Bloomfield, New Jersey for $19.5 million
Bruce Schanzer commented, "The first quarter of 2016 was a period of progress on the leasing, redevelopment and capital migration fronts. We continue to systematically make advancements within our core portfolio while enhancing its composition. Additionally, we are making progress with the anchor vacancies that occurred in the fourth quarter of 2015. We remain optimistic these spaces will be re-leased within the coming 12 months with positive spreads on average, while also seeing relatively strong leasing and operating results outside of those situations." Mr. Schanzer continued, "The first quarter of 2016 also marked the arrival of Robin Zeigler as our new COO. We look forward to benefitting from her experience and expertise for many years to come."
Financial Results
Operating FFO for the first quarter of 2016 was $12.0 million or $0.14 per diluted share, compared to $10.6 million or $0.13 per diluted share for the same period in 2015. NAREIT-defined FFO (FFO) for the first quarter of 2016 was $7.5 million or $0.09 per diluted share, compared to $10.1 million or $0.12 per diluted share for the same period in 2015. The principal differences between Operating FFO and FFO are acquisition costs and management transition costs.
Net loss attributable to common shareholders for the first quarter of 2016 was $(1.9) million or $(0.03) per diluted share, compared to $(123,000) or $(0.00) per diluted share for the same period in 2015.
Portfolio Results
Same-property NOI for the first quarter of 2016 increased 1.3%, both including and excluding redevelopments, compared to the same period in 2015.
During the first quarter of 2016, the Company signed 64 leases for 345,900 square feet. On a comparable space basis, the Company leased 319,400 square feet at a positive lease spread of 8.7% on a cash basis (renewals increased 9.5% and new leases decreased 1.1%).
The Company's total portfolio, excluding properties held for sale, was 91.6% leased at March 31, 2016, compared to 91.5% at December 31, 2015 and 93.7% at March 31, 2015. The Company's same-property portfolio was 92.0% leased at March 31, 2016, compared to 92.2% at December 31, 2015 and 93.5% at March 31, 2015. The decrease in leased percentages from March 31, 2015, are the result of four anchor vacancies that occurred in the fourth quarter of 2015.
Balance Sheet
As of March 31, 2016, the Company had $181.0 million available under its revolving credit facility and reported net debt to earnings before interest, taxes, depreciations, and amortization (EBITDA) of 7.4 times.
On April 26, 2016, the Company closed on a $100.0 million seven-year unsecured term loan. The loan provides for delayed draws of the proceeds through October 26, 2016 (with no proceeds drawn at closing). The term loan is priced at LIBOR plus a spread based on the Company's leverage ratio. The Company also entered into a forward LIBOR swap agreement that results in an effective fixed interest rate of 3.2% beginning November 1, 2016, based on the Company's leverage ratio at closing.
On May 3, 2016, the Company refinanced its existing $40.3 million mortgage loan secured by Franklin Village Plaza, originally scheduled to mature on August 1, 2016, with a new $50.0 million mortgage loan that bears interest at 3.9% and matures on June 1, 2026.
2016 Guidance
The Company raised the low end of its previously-announced 2016 Operating FFO guidance to a range of $0.54 to $0.56 per diluted share and updated its NAREIT-defined FFO to a range of $0.48 to $0.50 per diluted share. The principal difference in 2016 guidance between Operating FFO and NAREIT-defined FFO is acquisition costs and management transition costs.
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 May 20, 2016 to shareholders of record as of the close of business on May 10, 2016.
Non-GAAP Financial Measures
NAREIT-defined 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. A reconciliation of net loss attributable to common shareholders to FFO and Operating FFO for the three months ended March 31, 2016 and 2015 is detailed in the attached schedule.
Supplemental Financial Information Package
The Company has issued "Supplemental Financial Information" for the period ended March 31, 2016. 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, May 5, 2016, at 5:00 PM (ET) to discuss the first 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 May 5, 2016, until midnight (ET) on May 19, 2016. The replay dial-in numbers are (877) 870-5176 or (1) (858) 384-5517 for international callers. Please use passcode 13632568 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 D.C. to Boston corridor. The Company's portfolio (excluding properties treated as "held for sale") comprises 62 properties, with approximately 9.6 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
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, 2015, 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.
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CEDAR REALTY TRUST, INC. | |||||
|
Condensed Consolidated Balance Sheets | |||||
|
(unaudited) | |||||
|
March 31, |
December 31, | ||||
|
2016 |
2015 | ||||
|
ASSETS |
|||||
|
Real estate, at cost |
$ 1,573,363,000 |
$ 1,550,027,000 | |||
|
Less accumulated depreciation |
(309,692,000) |
(300,832,000) | |||
|
Real estate, net |
1,263,671,000 |
1,249,195,000 | |||
|
Real estate held for sale |
- |
14,402,000 | |||
|
Cash and cash equivalents |
1,757,000 |
2,083,000 | |||
|
Restricted cash |
5,956,000 |
5,592,000 | |||
|
Receivables |
19,364,000 |
17,912,000 | |||
|
Other assets and deferred charges, net |
29,139,000 |
29,196,000 | |||
|
TOTAL ASSETS |
$ 1,319,887,000 |
$ 1,318,380,000 | |||
|
LIABILITIES AND EQUITY |
|||||
|
Liabilities: |
|||||
|
Mortgage loans payable |
$ 304,190,000 |
$ 298,089,000 | |||
|
Unsecured revolving credit facility |
79,000,000 |
78,000,000 | |||
|
Unsecured term loans |
297,867,000 |
297,731,000 | |||
|
Accounts payable and accrued liabilities |
30,076,000 |
23,831,000 | |||
|
Unamortized intangible lease liabilities |
22,533,000 |
23,187,000 | |||
|
Total liabilities |
733,666,000 |
720,838,000 | |||
|
Equity: |
|||||
|
Preferred stock |
190,661,000 |
190,661,000 | |||
|
Common stock and other shareholders' equity |
394,196,000 |
405,389,000 | |||
|
Noncontrolling interests |
1,364,000 |
1,492,000 | |||
|
Total equity |
586,221,000 |
597,542,000 | |||
|
TOTAL LIABILITIES AND EQUITY |
$ 1,319,887,000 |
$ 1,318,380,000 | |||
|
CEDAR REALTY TRUST, INC. | |||||
|
Condensed Consolidated Statements of Operations | |||||
|
(unaudited) | |||||
|
Three months ended March 31, |
|||||
|
2016 |
2015 |
||||
|
PROPERTY REVENUES |
|||||
|
Rents |
$ 29,130,000 |
$ 28,962,000 |
|||
|
Expense recoveries |
8,958,000 |
9,621,000 |
|||
|
Other |
163,000 |
52,000 |
|||
|
Total property revenues |
38,251,000 |
38,635,000 |
|||
|
PROPERTY OPERATING EXPENSES |
|||||
|
Operating, maintenance and management |
7,155,000 |
8,344,000 |
|||
|
Real estate and other property-related taxes |
4,880,000 |
4,687,000 |
|||
|
Total property operating expenses |
12,035,000 |
13,031,000 |
|||
|
PROPERTY OPERATING INCOME |
26,216,000 |
25,604,000 |
|||
|
OTHER EXPENSES AND INCOME |
|||||
|
General and administrative |
5,347,000 |
3,919,000 |
|||
|
Acquisition costs |
2,597,000 |
499,000 |
|||
|
Depreciation and amortization |
9,661,000 |
9,508,000 |
|||
|
Gain on sale |
(59,000) |
- |
|||
|
Impairment charges |
- |
1,109,000 |
|||
|
Total other expenses and income |
17,546,000 |
15,035,000 |
|||
|
OPERATING INCOME |
8,670,000 |
10,569,000 |
|||
|
NON-OPERATING INCOME AND EXPENSES |
|||||
|
Interest expense |
(7,005,000) |
(7,278,000) |
|||
|
Early extinguishment of debt costs |
(89,000) |
(57,000) |
|||
|
Total non-operating income and expense |
(7,094,000) |
(7,335,000) |
|||
|
INCOME FROM CONTINUING OPERATIONS |
1,576,000 |
3,234,000 |
|||
|
Discontinued operations |
- |
165,000 |
|||
|
NET INCOME |
1,576,000 |
3,399,000 |
|||
|
Attributable to noncontrolling interests |
87,000 |
80,000 |
|||
|
NET INCOME ATTRIBUTABLE TO CEDAR REALTY TRUST, INC. |
1,663,000 |
3,479,000 |
|||
|
Preferred stock dividends |
(3,602,000) |
(3,602,000) |
|||
|
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ (1,939,000) |
$ (123,000) |
|||
|
NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND DILUTED) |
|||||
|
Continuing operations |
$ (0.03) |
$ (0.01) |
|||
|
Discontinued operations |
0.00 |
0.01 |
|||
|
$ (0.03) |
$ (0.00) |
||||
|
Weighted average number of common shares - basic and diluted |
81,656,000 |
80,719,000 |
|||
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CEDAR REALTY TRUST, INC. | |||||
|
Reconciliation of Net Loss Attributable to Common Shareholders to Funds From Operations | |||||
|
and Operarting Funds From Operations | |||||
|
(unaudited) | |||||
|
Three months ended March 31, |
|||||
|
2016 |
2015 |
||||
|
Net loss attributable to common shareholders |
$ (1,939,000) |
$ (123,000) |
|||
|
Real estate depreciation and amortization |
9,618,000 |
9,427,000 |
|||
|
Limited partners' interest |
(7,000) |
(2,000) |
|||
|
Impairment charges |
- |
956,000 |
|||
|
Gain on sales |
(59,000) |
- |
|||
|
Consolidated minority interests: |
|||||
|
Share of loss |
(80,000) |
(78,000) |
|||
|
Share of FFO |
(65,000) |
(126,000) |
|||
|
Funds From Operations ("FFO") applicable to diluted common shares |
7,468,000 |
10,054,000 |
|||
|
Adjustments for items affecting comparability: |
|||||
|
Acquisition costs |
2,597,000 |
499,000 |
|||
|
Financing costs |
89,000 |
57,000 |
|||
|
Redevelopment costs |
393,000 |
- |
|||
|
Management transition costs |
1,427,000 |
- |
|||
|
Operating Funds From Operations ("Operating FFO") applicable |
|||||
|
to diluted common shares |
$ 11,974,000 |
$ 10,610,000 |
|||
|
FFO per diluted common share: |
$ 0.09 |
$ 0.12 |
|||
|
Operating FFO per diluted common share: |
$ 0.14 |
$ 0.13 |
|||
|
Weighted average number of diluted common shares: |
|||||
|
Common shares |
85,214,000 |
84,302,000 |
|||
|
OP Units |
352,000 |
393,000 |
|||
|
85,566,000 |
84,695,000 |
||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cedar-realty-trust-reports-first-quarter-2016-results-300263800.html
SOURCE Cedar Realty Trust, Inc.