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CEDAR REALTY TRUST, INC.

Supplemental Financial Information

March 31, 2016

(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
2016 Acquisitions and Dispositions			21
Non-GAAP Financial Disclosures			22

 

2

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Forward-Looking Statements

The information contained in this Supplemental Financial Information is unaudited and does not purport to disclose all items required by accounting principles generally accepted in the United States (“GAAP”). In addition, certain statements made or incorporated by reference herein are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, 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 most recent Annual Report on Form 10-K, 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

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CEDAR REALTY TRUST REPORTS

FIRST QUARTER 2016 RESULTS

Port Washington, New York – May 5, 2016 – 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.

 

4

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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.

 

5

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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.

Contact Information:

Cedar Realty Trust, Inc.

Philip R. Mays

Chief Financial Officer

(516) 944-4572

 

6

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CEDAR REALTY TRUST, INC.

Condensed Consolidated Balance Sheets

 

		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

 

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CEDAR REALTY TRUST, INC.

Condensed Consolidated Statements of Operations

 

		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.

Supporting Schedules to Consolidated Statements

 

		March 31,				December 31,
Balance Sheets		2016				2015
Construction in process (included in buildings and improvements)		$	6,833,000			$	6,146,000
Receivables
Rents and other tenant receivables, net		$	4,243,000			$	2,439,000
Straight-line rents			15,121,000				15,473,000
		$	19,364,000			$	17,912,000
Other assets and deferred charges, net
Lease origination costs		$	18,467,000			$	18,394,000
Revolving credit facility issuance costs			2,077,000				2,288,000
Prepaid expenses			6,295,000				6,104,000
Other			2,300,000				2,410,000
		$	29,139,000			$	29,196,000

 

Statements of Operations		Three months ended March 31,
		2016				2015
Rents
Base rents		$	28,685,000			$	27,792,000
Percentage rent			77,000				144,000
Straight-line rents			(317,000	)			196,000
Amortization of intangible lease liabilities, net			685,000				830,000
		$	29,130,000			$	28,962,000

 

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CEDAR REALTY TRUST, INC.

Funds From Operations and Additional Disclosures

 

		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 (a)			2,597,000				499,000
Financing costs (b)			89,000				57,000
Redevelopment costs (c)			393,000				—
Management transition costs (d)			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
Additional Disclosures (Pro-Rata Share):
Straight-line rents		$	(314,000	)		$	198,000
Amortization of intangible lease liabilities			659,000				804,000
Non-real estate amortization			436,000				502,000
Share-based compensation, net			510,000				804,000
Maintenance capital expenditures (e)			401,000				312,000
Lease related expenditures (f)			668,000				508,000
Development and redevelopment capital expenditures			1,488,000				1,159,000
Capitalized interest and financing costs			171,000				163,000

 

(a)	Represents costs directly associated with acquiring a property that are expensed pursuant to GAAP such as transfer taxes, brokerage fees and legal expenses.

(b)	Represents extinguishment of debt costs.

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

(d)	Costs associated with hiring a new Chief Operating Officer and estimated expenses related to termination of prior Chief Operating Officer.

(e)	Consists of payments for building and site improvements.

(f)	Consists of payments for tenant improvements and leasing commissions.

 

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CEDAR REALTY TRUST, INC.

Earnings Before Interest, Taxes, Depreciation and Amortization

 

		Three months ended March 31,
		2016				2015
EBITDA Calculation
Income from continuing operations		$	1,576,000			$	3,234,000
Add (deduct):
Interest expense (including early extinguishment of debt costs)			7,094,000				7,335,000
Depreciation and amortization			9,661,000				9,508,000
Minority interests share of consolidated joint venture EBITDA			(324,000	)			(442,000	)
Discontinued operations			—				12,000
EBITDA			18,007,000				19,647,000
Adjustments for items affecting comparability:
Acquisition costs			2,597,000				499,000
Redevelopment costs (a)			393,000				—
Management transition costs			1,427,000				—
Gain on sales			(59,000	)			—
Impairment charges			—				1,109,000
Adjusted EBITDA		$	22,365,000			$	21,255,000
Pro-rata share of net debt (b)
Pro-rata share of debt		$	664,778,000			$	638,819,000
Pro-rata share of debt issuance costs			3,803,000			$	4,128,000
Pro-rata share of unrestricted cash and cash equivalents			(1,682,000	)			(3,685,000	)
		$	666,899,000			$	639,262,000
Pro-rata fixed charges (b)
Interest expense (c)		$	6,507,000			$	6,689,000
Preferred stock dividends			3,602,000				3,602,000
Scheduled mortgage repayments			1,335,000				1,541,000
		$	11,444,000			$	11,832,000
Debt and Coverage Ratios
Net debt to Adjusted EBITDA (d)			7.4	x			7.4	x
Interest coverage ratio (based on Adjusted EBITDA)			3.4	x			3.2	x
Fixed charge coverage ratio (based on Adjusted EBITDA)			2.0	x			1.8	x

 

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

(b)	Includes properties “held for sale”.

(c)	Excludes early extinguishment of debt costs.

(d)	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.

 

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CEDAR REALTY TRUST, INC.

Summary of Outstanding Debt

As of March 31, 2016

 

		Maturity				Interest
Property		Date				Rate				Amounts
Fixed-rate mortgages:
Franklin Village Plaza			Aug 2016				4.1	%		$	40,251,000	(a)
West Bridgewater Plaza			Sep 2016				6.2	%			10,066,000	(a)
Carman’s Plaza			Oct 2016				6.2	%			33,500,000	(a)
Hamburg Square			Oct 2016				6.1	%			4,598,000	(a)
Meadows Marketplace			Nov 2016				5.6	%			9,162,000	(a)
San Souci Plaza (b)			Dec 2016				6.2	%			27,200,000	(a)
Camp Hill			Jan 2017				5.5	%			61,240,000	(a)
Golden Triangle			Feb 2018				6.0	%			18,817,000
Swede Square			Nov 2020				5.5	%			9,785,000
Colonial Commons			Feb 2021				5.5	%			25,579,000
Shoppes at Arts District			Apr 2022				5.2	%			8,487,000
East River Park			Sep 2022				3.9	%			20,311,000
The Point			Nov 2022				4.5	%			28,355,000
Metro Square			Nov 2029				7.5	%			7,641,000
Total fixed-rate mortgages			weighted average				5.3	%			304,992,000
Unsecured debt:
Variable-rate (c):
Revolving credit facility (d)			Feb 2019				1.8	%			79,000,000
Term loan			Feb 2020				1.8	%			50,000,000
Fixed-rate (e):
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				2.8	%			379,000,000
			Unamortized premium								909,000
Unamortized mortgage and term loan issuance costs											(3,844,000	)
Total debt			weighted average				3.9	%		$	681,057,000
Pro-rata share of total debt reconciliation:
Total debt										$	681,057,000
Less pro-rata share attributable to joint venture minority interest											(16,279,000	)
Pro-rata share of total debt										$	664,778,000
Fixed to variable rate debt ratio:
Fixed-rate debt							80.7	%		$	536,370,000
Variable-rate debt							19.3	%			128,408,000
							100.0	%		$	664,778,000

(a)	These mortgages will primarily be refinanced with (i) a $50 million, ten year mortgage, which closed on May 3, 2016, and (ii) a $100 million seven year unsecured term loan, which closed on April 26, 2016. Proceeds from the term loan can be drawn at anytime prior to October 26, 2016.

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

(c)	For variable-rate debt, rate in effect as of March 31, 2016.

(d)	Subject to a one-year extension at the Company’s option.

(e)	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.

 

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CEDAR REALTY TRUST, INC.

Summary of Debt Maturities

As of March 31, 2016

 

		Secured Debt								Unsecured Debt
		Scheduled				Balloon				Revolving				Term
Year		Amortization				Payments				Credit Facility				Loans				Total
2016		$	3,415,000			$	124,216,000	(a)		$	—			$	—			$	127,631,000
2017			2,938,000				60,478,000	(a)			—				—				63,416,000
2018			2,659,000				18,007,000				—				—				20,666,000
2019			2,759,000				—				79,000,000	(b)			75,000,000				156,759,000
2020			2,876,000				8,849,000				—				100,000,000				111,725,000
2021			2,179,000				22,367,000				—				75,000,000				99,546,000
2022			1,683,000				47,597,000				—				50,000,000				99,280,000
Thereafter			4,497,000				472,000				—				—				4,969,000
		$	23,006,000			$	281,986,000			$	79,000,000			$	300,000,000				683,992,000
Unamortized premium																			909,000
Unamortized mortgage and term loan issuance costs																			(3,844,000	)
																		$	681,057,000

 

(a)	These mortgages will primarily be refinanced with (i) a $50 million, ten year mortgage, which closed on May 3, 2016, and (ii) a $100 million seven year unsecured term loan, which closed on April 26, 2016. Proceeds from the term loan can be drawn at anytime prior to October 26, 2016.

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

 

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CEDAR REALTY TRUST, INC.

Real Estate Summary

As of March 31, 2016

 

												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	%		$	22.87			Big Y			63,817
Brickyard Plaza		2004			227,568				85.2	%			8.69			Home Depot			103,003
																Kohl’s			58,966
																Michaels			21,429
Groton Shopping Center		2007			117,186				79.7	%			12.25			TJ Maxx			30,000
																Goodwill			21,306
Jordan Lane		2005			177,504				99.2	%			11.36			Stop & Shop			60,632
																Fallas			39,280
																Cardio Fitness			20,283
New London Mall		2009			259,566				94.4	%			15.36			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	%			7.38			Walmart			95,482
																NAMCO			20,000
Total Connecticut					1,128,871				93.3	%			11.98
Maryland / Washington DC
East River Park		2015			150,107				93.2	%			21.02			Safeway			40,000
																District of Columbia			34,400
Metro Square		2008			71,896				100.0	%			19.96			Shoppers Food Warehouse			58,668
Oakland Mills		2005			58,224				100.0	%			14.21			Food Lion			43,470
San Souci Plaza (b)		2009			264,134				81.2	%			10.86			Shoppers Food Warehouse			61,466
																Marshalls			27,000
																Maximum Health and Fitness			15,612
Shoppes at Arts District		2016			35,676				100.0	%			34.24			Busboys and Poets			9,889
																Yes! Organic Market			7,169
Valley Plaza		2003			190,939				100.0	%			5.27			K-Mart			95,810
																Ollie’s Bargain Outlet			41,888
																Tractor Supply			32,095
Yorktowne Plaza		2007			158,982				88.9	%			13.46			Food Lion			37,692
Total Maryland / Washington DC					929,958				91.7	%			13.68
Massachusetts
Fieldstone Marketplace		2005/2012			193,970				94.0	%			8.90			Shaw’s			68,000
																Flagship Cinema			41,975
																New Bedford Wine and Spirits			15,180
Franklin Village Plaza		2004/2012			303,096				89.6	%			21.08			Stop & Shop			75,000
																Marshalls			26,890
																Team Fitness			15,807
Kings Plaza		2007			168,243				95.2	%			6.78			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	%			9.78			Hannaford Brothers			42,598
																Planet Fitness			18,830
																Dollar Tree			16,798
The Shops at Suffolk Downs		2005			121,320				100.0	%			14.14			Stop & Shop			74,977
Timpany Plaza		2007			183,775				92.7	%			7.45			Stop & Shop			59,947
																Big Lots			28,027
																Gardner Theater			27,576
Webster Plaza		2007			101,824				42.5	%			14.42			Aubuchon Hardware			11,825
West Bridgewater Plaza		2007			133,039				100.0	%			8.75			Shaw’s			57,315
																Pump N Jump			25,000
																Planet Fitness			15,000
Total Massachusetts					1,307,726				90.6	%			11.99

 

14

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CEDAR REALTY TRUST, INC.

Real Estate Summary (Continued)

As of March 31, 2016

 

												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				88.7	%			8.90			Acme Markets			55,000
																Peebles			18,858
Pine Grove Plaza		2003			86,089				89.5	%			11.12			Peebles			24,963
Washington Center Shoppes		2001			157,394				93.1	%			9.69			Acme Markets			66,046
																Planet Fitness			20,742
Total New Jersey					373,065				90.7	%			9.75
New York
Carman’s Plaza		2007			193,736				55.0	%			20.15			Home Goods			25,806
																Department of Motor Vehicle			19,310
Pennsylvania
Academy Plaza		2001			137,415				87.9	%			14.65			Acme Markets			50,918
Camp Hill		2002			464,765				98.2	%			14.81			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				96.8	%			14.30			Giant Foods			67,815
																Dick’s Sporting Goods			56,000
																LA Fitness			41,325
																Home Goods			31,436
																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	%			20.18			Giant Foods			78,815
Fairview Commons		2007			52,964				68.1	%			11.38			Grocery Outlet			16,650
Fort Washington Center		2002			41,000				100.0	%			21.83			LA Fitness			41,000
Gold Star Plaza		2006			71,720				97.8	%			9.07			Redner’s			48,920
Golden Triangle		2003			202,943				94.6	%			13.39			LA Fitness			44,796
																Marshalls			30,000
																Staples			24,060
																Just Cabinets			18,665
																Aldi			15,242
Halifax Plaza		2003			51,510				100.0	%			12.80			Giant Foods			32,000
Hamburg Square		2004			99,580				86.9	%			6.43			Redner’s			56,780
																Peebles			19,683
Lawndale Plaza		2015			93,040				97.7	%			18.24			Shop Rite			63,342
Maxatawny Marketplace		2011			59,939				100.0	%			12.35			Giant Foods			53,914
Meadows Marketplace		2004/2012			91,518				96.5	%			15.52			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	%			10.11			Redner’s			53,019
Palmyra Shopping Center		2005			111,051				89.9	%			7.11			Weis Markets			46,912
																Goodwill			18,104
Port Richmond Village		2001			154,908				82.8	%			14.41			Thriftway			40,000
																Pep Boys			20,615
Quartermaster Plaza		2014			456,602				92.4	%			14.35			Home Depot			150,000
																BJ’s Wholesale Club			117,718
																Planet Fitness			23,146
																Staples			20,388
																Petsmart			19,089

 

15

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CEDAR REALTY TRUST, INC.

Real Estate Summary (Continued)

As of March 31, 2016

 

												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				88.5	%			19.99			United Artists			77,700
																Avalon Carpet			25,000
																Pep Boys			22,000
																Staples			18,000
South Philadelphia		2003			283,415				74.9	%			14.72			Shop Rite			54,388
																Ross Dress For Less			31,349
																LA Fitness			31,000
																Modell’s			20,000
Swede Square		2003			100,816				95.5	%			17.91			LA Fitness			37,200
The Commons		2004			203,426				66.1	%			11.01			Bon-Ton			54,500
																TJ Maxx			24,404
The Point		2000			268,037				99.0	%			12.76			Burlington Coat Factory			76,665
																Giant Foods			76,627
																A.C. Moore			24,890
																Staples			24,000
Trexler Mall		2005			337,297				96.4	%			9.82			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				73.0	%			13.55			Giant Foods			78,335
																Hobby Lobby			57,512
																Big Lots			33,824
																Tractor Supply			19,097
Upland Square		2007			399,948				93.9	%			17.95			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					5,008,965				90.7	%			14.31
Virginia
Coliseum Marketplace		2005			106,648				100.0	%			16.80			Farm Fresh			57,662
																Michaels			23,981
Elmhurst Square		2006			66,250				87.1	%			9.71			Food Lion			38,272
Fredericksburg Way		2005			63,000				100.0	%			19.58			Ukrop’s Supermarket			63,000
General Booth Plaza		2005			71,639				98.3	%			14.18			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	%			11.09			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				96.7	%			12.84
Total (91.6% leased at March 31, 2016)					9,498,614				90.7	%		$	13.44

 

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

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CEDAR REALTY TRUST, INC.

Leasing Activity (a)

 

		Leases Signed				Square Feet				New Rent Per. Sq. Ft (a)				Prior Rent Per. Sq. Ft (b)				Cash Basis % Change				Tenant Improvements Per. Sq. Ft (c)				Average Lease Term (Yrs)
Total Comparable Leases
1st Quarter 2016			60				319,400			$	13.52			$	12.44				8.7	%		$	1.43				4.1
4th Quarter 2015			31				385,300			$	11.99			$	10.69				12.1	%		$	3.63				4.4
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
Total			158				995,700			$	13.82			$	12.62				9.6	%		$	2.98				4.4
New Leases - Comparable
1st Quarter 2016			7				20,500			$	14.24			$	14.40				-1.1	%		$	22.28				6.0
4th Quarter 2015			6				46,300			$	14.38			$	13.41				7.3	%		$	30.24				4.6
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
Total			31				127,800			$	14.68			$	13.84				6.1	%		$	23.20				6.3
Renewals - Comparable
1st Quarter 2016			53				298,900			$	13.47			$	12.30				9.5	%		$	0.00				4.0
4th Quarter 2015			25				339,000			$	11.66			$	10.32				13.0	%		$	0.00				4.4
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
Total			127				867,900			$	13.69			$	12.44				10.1	%		$	0.00				4.2
Total Comparable and Non-Comparable
1st Quarter 2016			64				345,900			$	13.56				N/A				N/A			$	1.62				4.5
4th Quarter 2015			33				410,600			$	12.06				N/A				N/A			$	5.08				5.3
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
Total			168				1,092,700			$	13.68				N/A				N/A			$	4.53				5.0

 

(a)	Leases on this schedule represent retail activity only.

(b)	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.

(c)	Includes tenant allowance and landlord work. Excludes first generation space.

(d)	For spaces vacant less than 12 months, the results for the trailing four quarters are as follows:

 

		Leases Signed				Square Feet				Cash Basis % Change
Total Comparable Leases			142				929,700				11.0	%
New Leases - Comparable			15				61,800				23.0	%

 

17

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CEDAR REALTY TRUST, INC.

Tenant Concentration (Based on Annualized Base Rent)

As of March 31, 2016

 

		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				8.3	%		$	11,862,000			$	15.11				10.2	%
LA Fitness			7				282,000				3.0	%			4,859,000				17.23				4.2	%
Shop Rite			3				182,000				1.9	%			2,945,000				16.18				2.5	%
Stop & Shop			4				271,000				2.9	%			2,913,000				10.75				2.5	%
Dollar Tree			21				213,000				2.2	%			2,278,000				10.69				2.0	%
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				1.8	%
Staples			6				125,000				1.3	%			2,040,000				16.32				1.8	%
BJ’s Wholesale Club			1				118,000				1.2	%			1,683,000				14.26				1.5	%
Marshalls			6				170,000				1.8	%			1,465,000				8.62				1.3	%
United Artists			1				78,000				0.8	%			1,454,000				18.64				1.3	%
Shaw’s			2				125,000				1.3	%			1,431,000				11.45				1.2	%
Big Y			1				64,000				0.7	%			1,404,000				21.94				1.2	%
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				2.0	%			1,193,000				6.21				1.0	%
Redners			3				159,000				1.7	%			1,155,000				7.26				1.0	%
Food Lion			4				152,000				1.6	%			1,118,000				7.36				1.0	%
Kohl’s			2				147,000				1.5	%			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			86				3,740,000				39.4	%			46,812,000				12.52				40.4	%
Remaining tenants			804				4,878,000				51.4	%			69,029,000				14.15				59.6	%
Sub-total all tenants (b)			890				8,618,000				90.7	%		$	115,841,000			$	13.44				100.0	%
Vacant space			N/A				881,000				9.3	%
Total			890				9,499,000				100.0	%

 

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

(1) Giant Foods and Stop & Shop, (2) Farm Fresh and Shoppers Food Warehouse, (3) Dollar Tree and Family Dollar (GLA of 47,000; annualized base rent of $482,000), (4) Marshalls, Home Goods and TJ Maxx (GLA of 79,000; annualized base rent of $764,000), (5) Shaw’s and Acme Markets (GLA of 172,000; annualized base rent of $794,000), 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:

 

						Percentage								Annualized				Percentage
		Occupied				of occupied				Annualized				base rent				annualized
		GLA				GLA				base rent				per sq. ft.				base rents
Large tenants			5,963,000				69.2	%		$	65,575,000			$	11.00				56.6	%
Small tenants			2,655,000				30.8	%			50,266,000				18.94				43.4	%
Total			8,618,000				100.0	%		$	115,841,000			$	13.44				100.0	%

 

18

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CEDAR REALTY TRUST, INC.

Lease Expirations

As of March 31, 2016

 

																						Percentage
		Number								Percentage				Annualized				Annualized				of annualized
Year of lease expiration		of leases expiring				GLA expiring				of GLA expiring				expiring base rents				expiring base rents per sq. ft.				expiring base rents
Month-To-Month			57				189,000				2.2	%		$	2,808,000			$	14.86				2.4	%
2016			75				304,000				3.5	%			4,920,000				16.18				4.2	%
2017			136				1,003,000				11.6	%			13,476,000				13.44				11.6	%
2018			121				968,000				11.2	%			13,980,000				14.44				12.1	%
2019			118				895,000				10.4	%			11,352,000				12.68				9.8	%
2020			127				1,621,000				18.8	%			19,860,000				12.25				17.1	%
2021			91				953,000				11.1	%			12,864,000				13.50				11.1	%
2022			35				200,000				2.3	%			3,096,000				15.48				2.7	%
2023			20				159,000				1.8	%			1,608,000				10.11				1.4	%
2024			28				551,000				6.4	%			7,392,000				13.42				6.4	%
2025			29				515,000				6.0	%			7,404,000				14.38				6.4	%
2026			22				199,000				2.3	%			3,036,000				15.26				2.6	%
Thereafter			31				1,061,000				12.3	%			14,045,000				13.25				12.1	%
All tenants			890				8,618,000				100.0	%		$	115,841,000			$	13.44				100.0	%
Vacant space			N/A				881,000				N/A
Total portfolio			890				9,499,000				N/A

 

19

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CEDAR REALTY TRUST, INC.

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

Same-Property NOI (a)

 

		Three months ended March 31,
		2016				2015
Base Rents		$	25,859,000			$	25,794,000
Expense Recoveries			8,236,000				8,956,000
Total Revenues			34,095,000				34,750,000
Operating expenses			10,702,000				11,654,000
NOI		$	23,393,000			$	23,096,000
Occupied			91.5	%			92.7	%
Leased			92.0	%			93.5	%
Average base rent		$	13.29			$	13.04
Number of same properties			55				55
NOI growth			1.3%

 

(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

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CEDAR REALTY TRUST, INC.

2016 Acquisitions and Dispositions

 

Acquisitions

Location

GLA

Date Acquired

Purchase Price

Shoppes at Arts District

Hyattsville, MD

35,676

2/25/2016

$

20,500,000

Glenwood Village

Bloomfield, NJ

63,844

5/4/2016

19,526,000

$

40,026,000

Disposition

Location

GLA

Date Sold

Sales Price

Liberty Marketplace

Dubois, PA

68,200

2/11/2016

$

15,000,000

 

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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, management transition costs and certain redevelopment costs. The Company believes Operating FFO further assists in comparing the Company’s performance across reporting periods on a consistent basis by excluding such items.

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, gain on sales, impairment provisions and management transition charges. 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.

 

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