-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UJxImMLe8ucD97YFXXwlxrF87JIxe0Uj775Aq98Kp4Ra+aN3C9M4VT3GkPJ0Wh8v 7G3LPkK2sECwfQyBWwCtpQ== 0000950116-04-003418.txt : 20041115 0000950116-04-003418.hdr.sgml : 20041115 20041115130117 ACCESSION NUMBER: 0000950116-04-003418 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20041111 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041115 DATE AS OF CHANGE: 20041115 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CEDAR SHOPPING CENTERS INC CENTRAL INDEX KEY: 0000761648 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 421241468 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31817 FILM NUMBER: 041143369 BUSINESS ADDRESS: STREET 1: 44 SOUTH BAYLES AVENUE CITY: PORT WASHINGTON STATE: NY ZIP: 11050 BUSINESS PHONE: 5167676492 MAIL ADDRESS: STREET 1: 44 SOUTH BAYLES AVENUE CITY: PORT WASHINGTON STATE: NY ZIP: 11050 FORMER COMPANY: FORMER CONFORMED NAME: CEDAR INCOME FUND LTD /MD/ DATE OF NAME CHANGE: 20001128 FORMER COMPANY: FORMER CONFORMED NAME: UNI INVEST USA LTD DATE OF NAME CHANGE: 20000407 FORMER COMPANY: FORMER CONFORMED NAME: CEDAR INCOME FUND LTD DATE OF NAME CHANGE: 19920703 8-K 1 eight-k.htm 8-K Prepared and filed by St Ives Burrups

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 15, 2004

Cedar Shopping Centers, Inc.
(Exact name of registrant as specified in its charter)


Maryland         0-14510         42-1241468  
(State or other jurisdiction
of incorporation)		         (Commission File No.)         (IRS Employer
Identification No.)		  
                 
44 South Bayles Avenue
Port Washington, NY		                 11050  
(Address of principal
executive offices)		                 (Zip Code)  

(516) 767-6492
(Registrant’s telephone number,
including area code)

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))

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

     The information in this Current Report on Form 8-K is furnished under Item 2.02 – “Results of Operations and Financial Condition”, and under Item 7.01 — “Regulation FD”. 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.  The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

     On November 15, 2004, Cedar Shopping Centers, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter of 2004.  The press release also referred to certain supplemental financial information that is available on the Company’s website.  The text of the press release and supplemental financial information are attached hereto as Exhibits 99.1 and 99.2, respectively.

Item 9.01.              Financial Statements and Exhibits.


(c) Exhibits.    
       
99.1    Press release dated November 15, 2004.  
       
99.2   Cedar Shopping Centers, Inc. Supplemental Financial Information for the quarter ended September 30, 2004.  

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 SHOPPING CENTERS, INC.

/s/ THOMAS J. O’KEEFFE
Thomas J. O’Keeffe
Chief Financial Officer
(Principal financial officer)

Dated: November 15, 2004

 

 GRAPHIC 2 emptybox.gif GRAPHIC begin 644 emptybox.gif M1TE&.#EA#``,`/?^``````$!`0("`@,#`P0$!`4%!08&!@<'!P@("`D)"0H* M"@L+"PP,#`T-#0X.#@\/#Q`0$!$1$1(2$A,3$Q04%!45%186%A<7%Q@8&!D9 M&1H:&AL;&QP<'!T='1X>'A\?'R`@("$A(2(B(B,C(R0D)"4E)28F)B7IZ>GM[>WQ\?'U]?7Y^?G]_?X"`@(&!@8*" M@H.#@X2$A(6%A8:&AH>'AXB(B(F)B8J*BHN+BXR,C(V-C8Z.CH^/CY"0D)&1 MD9*2DI.3DY24E)65E9:6EI>7EYB8F)F9F9J:FIN;FYRGI^?GZ"@ MH*&AH:*BHJ.CHZ2DI*6EI::FIJ>GIZBHJ*FIJ:JJJJNKJZRLK*VMK:ZNKJ^O MK["PL+&QL;*RLK.SL[2TM+6UM;:VMK>WM[BXN+FYN;JZNKN[N[R\O+V]O;Z^ MOK^_O\#`P,'!P<+"PL/#P\3$Q,7%Q<;&QL?'Q\C(R,G)RWM_?W^#@X.'AX>+BXN/CX^3DY.7EY>;FYN?GY^CHZ.GIZ>KJZNOK MZ^SL[.WM[>[N[N_O[_#P\/'Q\?+R\O/S\_3T]/7U]?;V]O?W]_CX^/GY^?KZ M^OO[^_S\_/W]_?[^_O___R'Y!`$``/X`+``````,``P`!P@Z`/\)'$APX)L? M"!,J_/<#F;B'$!\:8"BNX,`#%"T*Q/BCHD:.'BV"U/AOY,>,)SN2Y&C@@,N7 &+@$$!``[ ` end EX-99 3 ex99-1.txt EXHIBIT 99.1 CEDAR SHOPPING CENTERS, INC. 44 SOUTH BAYLES AVENUE PORT WASHINGTON, NEW YORK 11050 CONTACT: LEO S. ULLMAN PRESIDENT (516) 767-6492 FOR IMMEDIATE RELEASE: - ---------------------- CEDAR SHOPPING CENTERS, INC. - ANNOUNCES THIRD QUARTER RESULTS -------------------------------------------------------------- Port Washington, New York - November 15, 2004 - Cedar Shopping Centers, Inc., (NYSE: "CDR") (the "Company"), today reported net income for the quarter ended September 30, 2004 of $1,208,000, or $0.07 per share, compared to a net loss of $(228,000), or $(0.96) per share, for the same period last year. Net income for the nine months ended September 30, 2004 was $4,454,000, or $0.27 per share, compared to a net loss of $(467,000), or $ (1.78) per share for the same period last year. The increases in net income and other results for 2004 over the 2003 amounts reflect, among other things, the Company's October 2003 common share offering and related transactions, acquisitions completed through September 30, 2004, and the preferred share offering completed in July 2004. The Company had outstanding 16,910,000 shares of common stock and Operating Partnership Units at September 30, 2004 as compared to 806,000 shares and OP Units at September 30, 2003. Per share figures for the 2003 periods have been retroactively adjusted to reflect the stock dividend and the subsequent reverse stock split effectuated in 2003. Highlights - ---------- o Funds from operations ("FFO") for the third quarter of 2004 increased to $3,691,000 ($0.22 per share/unit), from a loss of ($194,000) ($0.24 per share/unit) for the corresponding quarter of 2003. FFO for the nine months ended September 30, 2004 increased to $11,313,000 ($0.67 per share/unit) from a loss of ($11,000) or ($0.01 per share/unit) for the corresponding period of 2003. o Total revenues for the third quarter of 2004 at $12,464,000 was nearly double the $6,671,000 in revenues for the third quarter of 2003. Revenues for the nine months ended September 30, 2004 at $36,406,000 was more than double the $18,094,000 in total revenues for the corresponding period of 2003. o Net cash flows provided by operating activities increased to $11,136,000 for the nine months ended September 30, 2004 compared with $1,104,000 for the corresponding period of 2003. o The Company is presently involved in seven redevelopment projects and has purchased a tract of land for a ground-up development of a Giant supermarket-anchored center in Hanover Township, near Hershey, Pennsylvania. These projects, the largest of which is the redevelopment of the +/-500,000 sq. ft. Camp Hill Mall in Camp Hill, Pennsylvania, are expected to come "on stream" and contribute meaningfully to FFO in 2005 and thereafter. o Occupancy for the portfolio as of September 30, 2004, including the various redevelopment properties, was approximately 85%; excluding the redevelopment properties, the occupancy level was approximately 95%. o The Company has approximately 287,000 sq. ft. of signed new leases for tenants who are not yet in occupancy at properties owned at September 30, 2004, representing approximately $4.2 million in annualized base rents commencing at various dates throughout the next two years. o The Company is currently paying dividends at the annual rate of $0.90 per share of common stock which amounts are expected to be fully covered by FFO. o The Company's total assets as of September 30, 2004 were $423 million compared to $350 million as of December 31, 2003. Fixed-rate mortgages as of September 30, 2004 were $124.8 million, variable-rate mortgages, including draw downs under the Company's secured credit facility of $29.0 million, were $52.7 million, and total debt was $177.5 million, or 42.0% of the Company's assets. The Company's pro-rata share of total debt was 32.1% of its total market capitalization. o The Company has issued "Supplemental Financial Information" for the period ended September 30, 2004, and has filed such information today as an exhibit to its Form 8-K, which will also be available on the Company's website at http://www.cedarshoppingcenters.com. Preferred Stock Issue and Amended Line of Credit Facility - --------------------------------------------------------- On July 28, 2004, the Company completed a public offering of 2,350,000 shares of $25 Series A Cumulative Redeemable Preferred Stock, at a dividend rate of 8-7/8%, resulting in gross proceeds of $58,750,000. The shares have no stated maturity and are redeemable, at the Company's option, after July 28, 2009. The net proceeds to the Company, after underwriting fees and offering costs, were approximately $56.7 million, substantially all of which were used to reduce the Company's secured revolving credit facility. On November 2, 2004, the Company concluded certain amendments to its secured revolving credit facility in the original amount of $100 million. The amendments included (1) a reduction in the interest rate margin to a range of 150 to 205 basis points above LIBOR from a range of 225 to 275 basis points above LIBOR, depending on the Company's leverage ratio, (2) a reduction in the unused line fee from 0.25% per annum to either 0.15% or 0.20% per annum, (3) an increase, subject to certain conditions, of the maximum amount of the line to $200 million, and (4) certain revisions to other financial covenants under the line. Acquisitions Subsequent to September 30, 2004 - --------------------------------------------- On October 14, 2004, the Company acquired approximately 16 acres of land in Hanover Township, near Hershey, Pennsylvania, for the development of a +/-95,000 sq. ft. shopping center to be anchored by a 65,300 sq. ft. Giant Foods supermarket. The total development cost for the project, including the purchase price of approximately $1.9 million for the land, is estimated at $10 million, with completion scheduled in the third quarter of 2005. On November 1, 2004, the Company acquired Franklin Village Plaza in Franklin, Massachusetts, a community shopping center containing approximately 253,000 sq. ft. of gross leasable area, with an adjacent office building of approximately 36,000 sq. ft. Tenants include a 55,000 sq. ft. Stop & Shop, Marshalls, Radio Shack, Payless, Bath & Body Works and Applebees. Construction has commenced on an expansion of the Stop & Shop store, which will increase its size to 75,000 sq. ft. The purchase price for the property was approximately $72.5 million, including closing costs. The acquisition was funded by a $43.5 million, seven-year, 4.81% interest-only first mortgage, with the balance provided from the Company's revolving credit facility. Portfolio - --------- The Company, as of this date, has a portfolio of 29 shopping center properties, mostly supermarket-anchored community centers, located in five states, with approximately 4.5 million square feet of GLA. The Company expects to conclude additional acquisitions during the balance of the year. Overview by Management - ---------------------- Leo Ullman, CEO, in a statement said "We are pleased to report on our continued progress. We believe that our acquisition, development and redevelopment programs remain strong and we fully expect that these programs will add meaningfully to shareholder values commencing toward the end of this year and continuing for the next couple of years. During the past quarter, our Company has also implemented a new reporting and property accounting system as well as an internal control monitoring system which we believe will be very effective in helping us meet Sarbanes-Oxley requirements." Tom O'Keeffe, CFO, noted "Our offering of preferred stock this past quarter and the subsequent renegotiation of our credit facility will permit us to continue to execute our business plan. We also expect to meet our guidance for the year, although, we will come in at the low end of the range. This is the result of temporarily using the proceeds from the Preferred Stock Offering to pay down the lower cost revolving credit facility." New Leases - ---------- Annual base rents, excluding tenant reimbursements, for leases that have been signed and for which the tenants have not yet occupied their premises at properties owned at September 30, 2004, presently amount to approximately $4.2 million. Rent payments, from these leases, are expected to commence on the following schedule: ANNUALIZED QUARTER ENDING BASE RENT --------------------- ---------- December 31, 2004 $ 928,000 March 31, 2005 85,000 June 30, 2005 984,000 September 30, 2005 2,160,000 June 30, 2006 65,000 ---------- $4,222,000 ========== After giving effect to such new leases, the occupancy rate for the portfolio of properties held as of September 30, 2004 would have increased from 85% to approximately 93%. The Company has in hand, executed leases for approximately 407,000 square feet at the +/-500,000 sq. ft., +/- $52 million (including acquisition cost) Camp Hill Mall redevelopment project. New tenancies will include Giant Foods' larger, new prototype store (91,000 sq. ft., plus mezzanine), Orthopedic Institute (a 40,000 sq. ft. new building), Staples (20,000 sq. ft.), Pier 1 (12,000 sq. ft.), and a Hallmark card sytore (4,600 sq. ft.). Letters of intent have been signed for an additional 60,000 square feet. The redevelopment is expected to be completed in 2006. Guidance - -------- The Company expects FFO for 2004 to be at the low end of the previously-announced range of $0.90-$1.00 per share, and expects FFO for 2005 to be in the range of $1.10-$1.20 per share. FFO for 2004 is expected to be impacted by the temporary use of the proceeds from the preferred stock offering to pay down the lower-cost secured revolving credit facility. These forward looking projections are of course subject to uncertainties with respect to acquisitions, development and redevelopment activities, leasing activities, and short-term interest rates. The Company also expects to continue to pay quarterly dividends on its common stock at the rate of $0.225 per share ($0.90 per share on an annualized basis) for the remainder of 2004 and 2005. Interested parties are urged to review the Form 10-Q filed with the Securities and Exchange Commission for the quarter ended September 30, 2004 for further details. Investor Conference Call - ------------------------ The Company will host a conference call on Tuesday, November 16, 2004, at 11:00 AM (EDT) to discuss third quarter results. The U.S. dial-in number to call for this teleconference is (800) 299-9630. The international dial-in number is (617) 786-2904; all callers should use participant passcode 45881723. A replay of the conference call will be available from November 16 at 1:00 PM through November 22 at 5:00 PM by using U.S. dial-in number (888) 286-8010 and entering the passcode 75662559 (international callers may use dial-in number (617) 801-6888 and use the same passcode indicated for U.S. callers). About Cedar Shopping Centers, Inc. - ---------------------------------- Cedar Shopping Centers, Inc., with headquarters in Port Washington, New York, is a fully-integrated, self-administered and self-managed real estate investment trust ("REIT") listed on the New York Stock Exchange. Its investments, which total approximately 4.5 million sq. ft. of GLA, are focused primarily in multi-tenant supermarket-anchored shopping centers in eastern Pennsylvania (24), Massachusetts (1), southern New Jersey (2), Maryland (1), and Connecticut (1). Forward-Looking Statements - -------------------------- Certain statements contained in this press release constitute forward-looking statements within the meaning of the securities laws. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general and specific economic and business conditions, which may, among other things, affect demand for rental space, the availability and creditworthiness of prospective tenants, lease rents and the availability of financing; adverse changes in the Company's real estate markets, including, among other things, competition with other companies; risks of real estate development and acquisition; risks of adverse operating results and creditworthiness of current tenants; governmental actions and initiatives; and environmental/safety requirements. Such forward-looking statements speak only as of the date hereof. The Company does not intend, and disclaims any duty or obligation, to update or revise any forward-looking statements set forth in this release to reflect any change in expectations, change in information, new information, future events or circumstances on which such information was based. Non-GAAP Financial Measures - FFO - --------------------------------- The Company considers FFO to be a relevant and meaningful supplemental measure of the performance of the Company because it is predicated on a cash flow analysis, contrasted with net income, a measure predicated on generally accepted accounting principals ("GAAP"), which gives effect to non-cash items such as depreciation and amortization. The Company computes FFO in accordance with the "White Paper" on FFO published by the National Association of Real Estate Investment Trusts ("NAREIT"), as income before allocation to minority interests (computed in accordance with GAAP), excluding gains or losses from debt restructurings and sales of property, plus depreciation and amortization, and after preferred stock distribution requirements and adjustments for partially-owned partnerships and joint ventures. In computing FFO, the Company does not add back to net income the amortization of costs incurred in connection with its financing activities or depreciation of non-real estate assets, but would add back to net income those items that are defined as "extraordinary" under GAAP. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to cash flow as a measure of liquidity. Since the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another. FFO is not necessarily indicative of cash available to fund ongoing cash needs. The following table sets forth the Company's calculations of FFO:
Three months ended Sept 30, Nine months ended Sept 30, -------------------------------------------------------------- 2004 2003 2004 2003 -------------------------------------------------------------- Net income (loss) $ 1,208,000 $ (228,000) $ 4,454,000 $ (467,000) Add (deduct): Depreciation and amortization 2,671,000 914,000 7,369,000 2,434,000 Limited partners' interest 58,000 (490,000) 147,000 (939,000) Limited partners' share of preferred distribution requirements (25,000) (43,000) (25,000) (91,000) Minority interests 274,000 367,000 858,000 790,000 Minority interests' share of FFO (495,000) (714,000) (1,490,000) (1,738,000) -------------------------------------------------------------- Funds from operations $ 3,691,000 $ (194,000) $11,313,000 $ (11,000) ============================================================== FFO per common share/unit outstanding $ 0.22 $ (0.24) $ 0.67 $ (0.01) ============================================================== Average common shares/units outstanding (1) 16,910,000 806,000 16,905,000 831,000 ==============================================================
(1) Assumes conversion of OP Units CEDAR SHOPPING CENTERS, INC. CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2004 DECEMBER 31, (UNAUDITED) 2003 ------------ ------------ Assets Real estate: Land $ 75,272,000 $ 61,774,000 Buildings and improvements 329,369,000 269,031,000 ------------ ------------ 404,641,000 330,805,000 Less accumulated depreciation (13,060,000) (6,274,000) ------------ ------------ Real estate, net 391,581,000 324,531,000 Cash and cash equivalents 7,093,000 6,154,000 Cash at joint ventures and restricted cash 6,243,000 6,208,000 Rents and other receivables, net 3,762,000 3,269,000 Other assets 5,639,000 3,000,000 Deferred charges, net 8,599,000 6,485,000 ------------ ------------ Total assets $422,917,000 $349,647,000 ============ ============ Liabilities and shareholders' equity Mortgage loans payable $148,602,000 $144,983,000 Secured revolving credit facility 28,950,000 17,000,000 Accounts payable, accrued expenses, and other 6,843,000 5,616,000 Deferred liabilities 19,857,000 14,430,000 ------------ ------------ Total liabilities 204,252,000 182,029,000 ------------ ------------ Minority interests 12,201,000 12,435,000 Limited partners' interest in consolidated Operating Partnership 4,095,000 4,035,000 Shareholders' equity: Preferred stock ($.01 par value, $25.00 per share liquidation value, 5,000,000 shares authorized, 2,350,000 shares issued and outstanding) 58,750,000 - Common stock ($.06 par value, 50,000,000 shares authorized, 16,456,000 shares issued and outstanding) 987,000 987,000 Treasury stock (319,000 shares, at cost) (3,669,000) (3,669,000) Accumulated other comprehensive income 127,000 47,000 Additional paid-in capital 146,174,000 153,783,000 ------------ ------------ Total shareholders' equity 202,369,000 151,148,000 ------------ ------------ Total liabilities and shareholders' equity $422,917,000 $349,647,000 ============ ============
CEDAR SHOPPING CENTERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, -------------------------------- ------------------------------- 2004 2003 2004 2003 ----------- ---------- ----------- ----------- Revenues: Rents $10,087,000 $5,199,000 $28,835,000 $14,122,000 Expense recoveries 2,253,000 1,452,000 7,188,000 3,912,000 Interest and other 124,000 20,000 383,000 60,000 ----------- ---------- ----------- ----------- Total revenues 12,464,000 6,671,000 36,406,000 18,094,000 Expenses: Operating, maintenance and management 2,349,000 1,594,000 7,746,000 4,784,000 Real estate and other property-related taxes 1,363,000 662,000 3,707,000 1,895,000 General and administrative 706,000 355,000 2,333,000 1,542,000 Depreciation and amortization 3,158,000 1,150,000 8,714,000 2,917,000 Interest 2,462,000 3,243,000 7,561,000 7,533,000 ----------- ---------- ----------- ----------- Total expenses 10,038,000 7,004,000 30,061,000 18,671,000 Income (loss) before the following: 2,426,000 (333,000) 6,345,000 (577,000) Minority interests (274,000) (367,000) (858,000) (790,000) Limited partners' interest (58,000) 490,000 (147,000) 939,000 Preferred distribution requirements (net of limited partners' share of $25,000, $43,000, $25,000 and $91,000, respectively) (886,000) (18,000) (886,000) (39,000) ----------- ---------- ----------- ----------- Net income (loss) $ 1,208,000 $ (228,000) $ 4,454,000 $ (467,000) =========== ========== =========== =========== Net income (loss) per share $ 0.07 $ (0.96) $ 0.27 $ (1.78) =========== ========== =========== =========== Dividends to common shareholders $ 3,703,000 $ - $10,038,000 $ - =========== ========== =========== =========== Dividends to common shareholders per share $ 0.225 $ - $ 0.610 $ - =========== ========== =========== =========== Average number of common shares outstanding 16,456,000 238,000 16,456,000 263,000 =========== ========== =========== ===========
CEDAR SHOPPING CENTERS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) NINE MONTHS ENDED SEPTEMBER 30, ------------------------------- 2004 2003 ------------ ------------ Cash flow from operating activities: Net income (loss) $ 4,454,000 $ (467,000) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Non-cash provisions: Minority interests 385,000 234,000 Straight-line rents (905,000) (520,000) Limited partners' interest 147,000 (939,000) Depreciation and amortization 8,714,000 2,917,000 Amortization of intangible lease liabilities (1,555,000) (590,000) Limited partners' share of preferred distribution requirements (25,000) - Other (141,000) - Changes in operating assets and liabilities: Decrease (increase) in joint venture cash 74,000 (101,000) Decrease in rents and other receivables 412,000 98,000 (Increase) in other assets (1,651,000) (1,267,000) Increase in accounts payable and accrued expenses 1,227,000 1,739,000 ------------ ------------ Net cash provided by operating activities 11,136,000 1,104,000 ------------ ------------ Cash flow from investing activities: Expenditures for real estate and improvements (59,128,000) (60,721,000) (Increase) decrease in construction/improvement escrows (109,000) 400,000 ------------ ------------ Net cash (used in) investing activities (59,237,000) (60,321,000) ------------ ------------ Cash flow from financing activities: Proceeds from mortgage financings 723,000 46,927,000 Mortgage repayments (7,097,000) (1,053,000) Line of credit and other interim financings, net 11,950,000 6,091,000 Net proceeds from preferred stock offering 56,725,000 - Contributions from minority interest partners - 9,665,000 Distributions to minority interest partners (619,000) (548,000) Distributions to common shareholders (10,038,000) - Distributions to limited partners (275,000) - Preferred distributions - (130,000) Deferred financing, leasing and other costs, net (2,329,000) (2,822,000) ------------ ------------ Net cash provided by financing activities 49,040,000 58,130,000 ------------ ------------ Net increase (decrease) in cash and cash equivalents 939,000 (1,087,000) Cash and cash equivalents at beginning of period 6,154,000 3,827,000 ------------ ------------ Cash and cash equivalents at end of period $ 7,093,000 $ 2,740,000 ============ ============ Supplemental disclosure of cash activities: Interest paid $ 8,536,000 $ 6,119,000 ============ ============ Supplemental disclosure of non-cash financing activities: Assumption of mortgage loan payable $ 9,993,000 $ - ============ ============
EX-99 4 ex99-2.txt EXHIBIT 99.2 CEDAR SHOPPING CENTERS, INC. SUPPLEMENTAL FINANCIAL INFORMATION SEPTEMBER 30, 2004 (UNAUDITED) CEDAR SHOPPING CENTERS, INC. 44 SOUTH BAYLES AVENUE PORT WASHINGTON, NY 11050 TEL: (516) 767-6492 FAX: (516) 767-6497 WWW.CEDARSHOPPINGCENTERS.COM CEDAR SHOPPING CENTERS, INC. SUPPLEMENTAL FINANCIAL INFORMATION SEPTEMBER 30, 2004 (UNAUDITED) TABLE OF CONTENTS ----------------- Disclosures.............................................................. 3 Summary Financial Data................................................... 5 Consolidated Balance Sheets Information (wholly-owned and joint venture properties)................................................ 7 Consolidated Statements of Operations Information (wholly-owned and joint venture properties)...................................... 8 Reconciliation of Net Income (Loss) to Funds From Operations ("FFO") and Adjusted Funds From Operation ("AFFO")......................... 10 Property Summary ........................................................ 11 Debt Summary ............................................................ 14 Consolidated Joint Ventures Information.................................. 16 Tenant Concentration Schedule............................................ 17 Lease Expiration Schedule................................................ 18 2 CEDAR SHOPPING CENTERS, INC. SUPPLEMENTAL FINANCIAL INFORMATION SEPTEMBER 30, 2004 (UNAUDITED) DISCLOSURES - ----------- FORWARD LOOKING STATEMENTS - -------------------------- Statements made or incorporated by reference in the Supplemental Financial Information include certain "forward-looking statements". Forward-looking statements include, without limitation, statements containing the words "anticipates", "believes", "expects", "intends", "future", and words of similar import, which express the Company's belief, expectations, or intentions regarding future performance or future events or trends. While forward-looking statements reflect good faith beliefs, they are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements as a result of factors outside of the Company's control. Certain factors that might cause such a difference include, but are not limited to, the following: real estate investment considerations, such as the effect of economic and other conditions in general and in the eastern United States in particular; the financial viability of our tenants; the continuing availability of shopping center acquisitions, and development and redevelopment opportunities, on favorable terms; the availability of equity and debt capital in the public and private markets; the fact that returns from development, redevelopment and acquisition activities may not be at expected levels; the Company's potential inability to realize the level of proceeds from property sales as initially expected; inherent risks in ongoing development and redevelopment projects including, but not limited to, cost overruns resulting from weather delays, changes in the nature and scope of development and redevelopment efforts, and market factors involved in the pricing of material and labor; the need to renew leases or re-let space upon the expiration of current leases; and the financial flexibility to refinance debt obligations when due. BASIS OF PRESENTATION - --------------------- The information contained in the Supplemental Financial Information is unaudited and does not purport to disclose all items required by GAAP. The information contained herein should be read in conjunction with the Company's Form 10-K for the year ended December 31, 2003 and Form 10-Q for the quarter ended September 30, 2004. Cedar Shopping Centers Partnership, L.P. (the "OP") is the entity through which the Company conducts substantially all of its business and owns (either directly or through subsidiaries) substantially all of its assets. As of September 30, 2004 and December 31, 2003, respectively, the Company owned approximately a 97.3% and a 97.4% economic interest in, and was the sole general partner of, the OP. The limited partners' interest in the OP is evidenced by Operating Partnership Units ("OP Units"), which are economically equivalent to, and convertible into, shares of the Company's common stock on a one-for-one basis. With respect to its joint ventures, the Company has general partnership interests ranging from 20% to 50% and, as the Company is the sole general partner and exercises substantial operating control over these entities, such partnerships are consolidated in the Company's financial statements. 3 USE OF FUNDS FROM OPERATIONS ("FFO") AS A NON-GAAP FINANCIAL MEASURE - -------------------------------------------------------------------- The Company considers FFO to be a relevant and meaningful supplemental measure of the performance of the Company because it is predicated on a cash flow analysis, contrasted with net income, a measure predicated on GAAP, which gives effect to non-cash items such as depreciation and amortization. The Company computes FFO in accordance with the "White Paper" on FFO published by the National Association of Real Estate Investment Trusts ("NAREIT"), as income before allocation to minority interests (computed in accordance with GAAP), excluding gains or losses from debt restructurings and sales of property, plus depreciation and amortization, and after preferred stock distribution requirements and adjustments for any unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures would be computed to reflect FFO on the same basis. In computing FFO, the Company does not add back to net income the amortization of costs incurred in connection with its financing or hedging activities or depreciation of non-real estate assets, but would add back to net income those items that are defined as "extraordinary" under GAAP. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to cash flow as a measure of liquidity. Since the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another. FFO is not necessarily indicative of cash available to fund ongoing cash needs. 4 CEDAR SHOPPING CENTERS, INC. SUMMARY FINANCIAL DATA (UNAUDITED)
SEPTEMBER 30, DECEMBER 31, 2004 2003 ------------ ------------ Equity market capitalization (end of period): Common shares outstanding 16,456,011 16,456,011 OP Units outstanding 454,469 439,421 Closing market price $ 13.95 $ 12.42 8-7/8 Series A Cumulative Redeemable Preferred Stock shares outstanding 2,350,000 - Closing market price $ 26.20 $ - Equity market capitalization $297,471,000 $209,841,000 Pro rata share of outstanding debt 140,947,000 125,287,000 ------------ ------------ Total capitalization $438,418,000 $335,128,000 ============ ============ Ratio of pro rata share of outstanding debt to total capitalization 32.1% 37.4% ============ ============
THREE MONTHS ENDED SEPTEMBER 30, -------------------------------- 2004 2003 ------------- ------------ Total revenues $ 12,464,000 $ 6,671,000 Net income (loss) $ 1,208,000 $ (228,000) Per common share $ 0.07 $ (0.96) Dividends to common shareholders $ 3,703,000 $ - Per common share $ 0.225 $ - Average number of common shares outstanding 16,456,000 238,000 FFO $ 3,691,000 $ (194,000) Per common share/OP unit $ 0.22 $ (0.24) AFFO $ 3,221,000 $ (406,000) Per common share/OP unit $ 0.19 $ (0.50) Avg. no. of common shares/OP units outstanding 16,910,000 806,000
NINE MONTHS ENDED SEPTEMBER 30, ------------------------------- 2004 2003 ------------- ------------ Total revenues $ 36,406,000 $ 18,094,000 Net income (loss) $ 4,454,000 $ (467,000) Per common share $ 0.27 $ (1.78) Dividends to common shareholders $ 10,038,000 $ - Per common share $ 0.610 $ - Average number of common shares outstanding 16,456,000 263,000 FFO $ 11,313,000 $ (11,000) Per common share/OP unit $ 0.67 $ (0.01) AFFO $ 9,649,000 $ (570,000) Per common share/OP unit $ 0.57 $ (0.69) Avg. no. of common shares/OP units outstanding 16,905,000 831,000
5 CEDAR SHOPPING CENTERS, INC. SUMMARY FINANCIAL DATA (UNAUDITED) (CONTINUED) SEPTEMBER 30, DECEMBER 31, 2004 2003 ------------ ------------ Real estate, net 391,581,000 324,531,000 Other assets 31,336,000 25,116,000 ------------ ------------ Total assets $422,917,000 $349,647,000 ============ ============ Total debt $177,552,000 $161,983,000 Other liabilities 26,700,000 20,046,000 Minority interests 12,201,000 12,435,000 Limited partners' interest in OP 4,095,000 4,035,000 Shareholders' equity 202,369,000 151,148,000 ------------ ------------ Total liabilities and equity $422,917,000 $349,647,000 ============ ============ Fixed-rate mortgages $124,821,000 $116,062,000 Variable-rate mortgages 23,781,000 28,921,000 ------------ ------------ Total mortgages 148,602,000 144,983,000 Secured revolving credit facility 28,950,000 17,000,000 ------------ ------------ Total debt $177,552,000 $161,983,000 ============ ============ Pro rata share of total debt $140,946,700 $125,287,000 ============ ============ Weighted average interest rates: Fixed-rate mortgages 7.2% 7.2% Variable-rate mortgages 4.5% 4.7% Total mortgages 6.8% 6.7% Secured revolving credit facility 4.0% 3.4% Total debt 6.3% 6.4% 6 CEDAR SHOPPING CENTERS, INC. CONSOLIDATED BALANCE SHEETS INFORMATION (UNAUDITED)
SEPTEMBER 30, 2004 DECEMBER 31, 2003 --------------------------------------------- ------------------------------------------- JOINT VENTURE WHOLLY-OWNED JOINT VENTURE WHOLLY-OWNED TOTAL PROPERTIES PROPERTIES TOTAL PROPERTIES PROPERTIES --------------------------------------------- ------------------------------------------- Assets: Real estate: Land $ 75,272,000 $14,408,000 $ 60,864,000 $ 61,774,000 $14,408,000 $ 47,366,000 Buildings and improvements 329,369,000 53,254,000 276,115,000 269,031,000 52,756,000 216,275,000 --------------------------------------------- ------------------------------------------- 404,641,000 67,662,000 336,979,000 330,805,000 67,164,000 263,641,000 Less accumulated depreciation (13,060,000) (2,683,000) (10,377,000) (6,274,000) (1,663,000) (4,611,000) --------------------------------------------- ------------------------------------------- Real estate, net 391,581,000 64,979,000 326,602,000 324,531,000 65,501,000 259,030,000 Cash and cash equivalents 7,093,000 - 7,093,000 6,154,000 - 6,154,000 Cash at joint ventures 929,000 929,000 - 1,003,000 1,003,000 - Construction / improvement and other escrows 5,314,000 743,000 4,571,000 5,205,000 790,000 4,415,000 Receivables: Rents and other, net 1,686,000 245,000 1,441,000 2,098,000 (46,000) 2,144,000 Straight-line rents 2,076,000 638,000 1,438,000 1,171,000 442,000 729,000 Real estate tax and other deposits 2,325,000 391,000 1,934,000 1,935,000 470,000 1,465,000 Prepaid expenses 3,314,000 537,000 2,777,000 1,065,000 192,000 873,000 Deferred charges, net: Leasing costs 4,939,000 159,000 4,780,000 3,206,000 30,000 3,176,000 Financing costs 2,663,000 707,000 1,956,000 1,874,000 786,000 1,088,000 Interest rate swaps/caps 743,000 - 743,000 1,339,000 - 1,339,000 Other 254,000 - 254,000 66,000 - 66,000 --------------------------------------------- ------------------------------------------- Total assets $422,917,000 $69,328,000 $353,589,000 $349,647,000 $69,168,000 $280,479,000 ============================================= =========================================== Liabilities and shareholders' equity: Mortgage loans payable $148,602,000 $50,391,000 $ 98,211,000 $144,983,000 $50,379,000 $ 94,604,000 Secured revolving credit facility 28,950,000 - 28,950,000 17,000,000 - 17,000,000 Accounts payable and accrued expenses 4,282,000 306,000 3,976,000 3,931,000 444,000 3,487,000 Tenant advance payments and security deposits 2,561,000 396,000 2,165,000 1,685,000 403,000 1,282,000 Deferred liabilities: Intangible lease liabilities 18,846,000 1,224,000 17,622,000 13,552,000 1,345,000 12,207,000 Discounted mortgage values 716,000 - 716,000 500,000 - 500,000 Unrealized losses on derivative financial instruments 295,000 238,000 57,000 378,000 247,000 131,000 --------------------------------------------- ------------------------------------------- Total liabilities 204,252,000 52,555,000 151,697,000 182,029,000 52,818,000 129,211,000 --------------------------------------------- ------------------------------------------- Minority interests 12,201,000 12,201,000 - 12,435,000 12,435,000 - Limited partners' interest in consolidated OP 4,095,000 123,000 3,972,000 4,035,000 102,000 3,933,000 Equity (a) 202,369,000 4,449,000 197,920,000 151,148,000 3,813,000 147,335,000 --------------------------------------------- ------------------------------------------- Total liabilities and equity $422,917,000 $69,328,000 $353,589,000 $349,647,000 $69,168,000 $280,479,000 ============================================= ===========================================
(a) Equity includes net receivable/payable balances, on open account, between joint venture and wholly-owned properties. 7 CEDAR SHOPPING CENTERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION (A) (UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, -------------------------------------------------------------------------------- 2004 2003 --------------------------------------- -------------------------------------- JOINT VENTURE WHOLLY-OWNED JOINT VENTURE WHOLLY-OWNED TOTAL PROPERTIES PROPERTIES TOTAL PROPERTIES PROPERTIES --------------------------------------- -------------------------------------- Revenues: Rents: Base rents $ 9,178,000 $ 1,770,000 $ 7,408,000 $4,730,000 $2,677,000 $2,053,000 Percentage rents 70,000 1,000 69,000 (8,000) 2,000 (10,000) Straight-line rents 260,000 63,000 197,000 200,000 130,000 70,000 Amortization of intangible lease liabilities 579,000 32,000 547,000 277,000 45,000 232,000 -------------------------------------- -------------------------------------- 10,087,000 1,866,000 8,221,000 5,199,000 2,854,000 2,345,000 Expense recoveries 2,253,000 331,000 1,922,000 1,452,000 632,000 820,000 Interest and other 124,000 - 124,000 20,000 12,000 8,000 -------------------------------------- -------------------------------------- Total revenues 12,464,000 2,197,000 10,267,000 6,671,000 3,498,000 3,173,000 Expenses: Operating, maintenance and management 2,349,000 305,000 2,044,000 1,594,000 562,000 1,032,000 Real estate and other property-related taxes 1,363,000 220,000 1,143,000 662,000 354,000 308,000 General and administrative 706,000 - 706,000 355,000 - 355,000 Depreciation and amortization 3,158,000 378,000 2,780,000 1,150,000 646,000 504,000 Interest 2,462,000 946,000 1,516,000 3,243,000 1,501,000 1,742,000 -------------------------------------- -------------------------------------- Total expenses 10,038,000 1,849,000 8,189,000 7,004,000 3,063,000 3,941,000 Income (loss) before the following: 2,426,000 348,000 2,078,000 (333,000) 435,000 (768,000) Minority interests (274,000) (274,000) - (367,000) (367,000) - Limited partners' interest (58,000) (2,000) (56,000) 490,000 (48,000) 538,000 Preferred distribution requirements (886,000) - (886,000) (18,000) - (18,000) -------------------------------------- -------------------------------------- Net income (loss) $ 1,208,000 $ 72,000 $ 1,136,000 ($228,000) $ 20,000 ($248,000) ====================================== ====================================== Net income (loss) per common share $0.07 $0.00 $0.07 ($0.96) $0.08 ($1.04) ====================================== ====================================== Average number of common shares outstanding 16,456,000 16,456,000 16,456,000 238,000 238,000 238,000 ====================================== ======================================
8 CEDAR SHOPPING CENTERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION (A) (UNAUDITED) (CONTINUED)
NINE MONTHS ENDED SEPTEMBER 30, ----------------------------------------------------------------------------------- 2004 2003 ------------------------------------------ ---------------------------------------- JOINT VENTURE WHOLLY-OWNED JOINT VENTURE WHOLLY-OWNED TOTAL PROPERTIES PROPERTIES TOTAL PROPERTIES PROPERTIES ----------------------------------------- --------------------------------------- Revenues: Rents: Base rents $26,001,000 $ 5,256,000 $20,745,000 $12,841,000 $7,110,000 $ 5,731,000 Percentage rents 374,000 20,000 354,000 171,000 48,000 123,000 Straight-line rents 905,000 204,000 701,000 520,000 350,000 170,000 Amortization of intangible lease liabilities 1,555,000 114,000 1,441,000 590,000 108,000 482,000 ----------------------------------------- ----------- ------------------------- 28,835,000 5,594,000 23,241,000 14,122,000 7,616,000 6,506,000 Expense recoveries 7,188,000 1,257,000 5,931,000 3,912,000 1,630,000 2,282,000 Interest and other 383,000 11,000 372,000 60,000 18,000 42,000 ----------------------------------------- ----------- ------------------------- Total revenues 36,406,000 6,862,000 29,544,000 18,094,000 9,264,000 8,830,000 Expenses: Operating, maintenance and management 7,746,000 1,056,000 6,690,000 4,784,000 1,578,000 3,206,000 Real estate and other property-related taxes 3,707,000 655,000 3,052,000 1,895,000 997,000 898,000 General and administrative 2,333,000 - 2,333,000 1,542,000 - 1,542,000 Depreciation and amortization 8,714,000 1,123,000 7,591,000 2,917,000 1,694,000 1,223,000 Interest 7,561,000 2,949,000 4,612,000 7,533,000 4,049,000 3,484,000 ----------------------------------------- ----------- ------------------------- Total expenses 30,061,000 5,783,000 24,278,000 18,671,000 8,318,000 10,353,000 Income (loss) before the following: 6,345,000 1,079,000 5,266,000 (577,000) 946,000 (1,523,000) Minority interests (858,000) (858,000) - (790,000) (790,000) - Limited partners' interest (147,000) (6,000) (141,000) 939,000 (107,000) 1,046,000 Preferred distribution requirements (886,000) - (886,000) (39,000) - (39,000) ----------------------------------------- --------------------------------------- Net income (loss) $ 4,454,000 $ 215,000 $ 4,239,000 ($467,000) $ 49,000 ($516,000) ========================================= ======================================= Net income (loss) per common share $0.27 $0.01 $0.26 ($1.78) $0.18 ($1.96) ========================================= ======================================= Average number of common shares outstanding 16,456,000 16,456,000 16,456,000 263,000 263,000 263,000 ========================================= =======================================
(a) In connection with the public offering concluded during the fourth quarter of 2003, the Company acquired a 100 % interest in several of the properties that were previously owned in joint venture, as well as the limited partner's approximately 70% interest in the OP. The results of operations of the properties which remain jointly-owned througout both years are summarized as follows (for comparability, the limited partners' interest for all periods reflect the 2004 position):
Three months ended Nine months ended September 30, September 30, ---------------------------- ----------------------------- 2004 2003 2004 2003 ---------------------------- ----------------------------- Revenues $2,197,000 $2,015,000 $6,862,000 $5,834,000 Expenses 1,849,000 1,758,000 5,783,000 5,153,000 ---------------------------- ----------------------------- Operating income 348,000 257,000 1,079,000 681,000 Minority interests (274,000) (216,000) (858,000) (590,000) Limited partners' interest (2,000) (1,000) (6,000) (2,000) ---------------------------- ----------------------------- Net income $ 72,000 $ 40,000 $ 215,000 $ 89,000 ============================ =============================
9 CEDAR SHOPPING CENTERS, INC. RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FUNDS FROM OPERATIONS ("AFFO") (UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, ----------------------------- ------------------------------ 2004 2003 2004 2003 ------------ ------------- ------------ ------------- Net income (loss) (1) $ 1,208,000 $ (228,000) $ 4,454,000 $ (467,000) Add (deduct): Depreciation and amortization 2,671,000 914,000 7,369,000 2,434,000 Limited partners' interest 58,000 (490,000) 147,000 (939,000) Limited partners' share of preferred distribution requirements (25,000) (43,000) (25,000) (91,000) Minority interests 274,000 367,000 858,000 790,000 Minority interests' share of FFO (495,000) (714,000) (1,490,000) (1,738,000) ------------ ------------ ------------ ------------ FFO 3,691,000 (194,000) 11,313,000 (11,000) Add (deduct): Straight-line rents (260,000) (200,000) (905,000) (520,000) Minority interests' share of straight-line rents 53,000 109,000 171,000 282,000 Provision for tenant improvements and capital expenditures (2) (440,000) (240,000) (1,259,000) (638,000) Minority interests' share of provision for tenant improvements and capital expenditures (2) 76,000 119,000 228,000 317,000 Pre-occupancy rents received in connection with the Camp Hill redevelopment project 101,000 -- 101,000 -- ------------ ------------ ------------ ------------ AFFO $ 3,221,000 $ (406,000) $ 9,649,000 $ (570,000) ============ ============ ============ ============ FFO per common share/unit outstanding $ 0.22 $ (0.24) $ 0.67 $ (0.01) AFFO per common share/unit outstanding $ 0.19 $ (0.50) $ 0.57 $ (0.69) ============ ============ ============ ============ Average common shares/OP units outstanding (3) 16,910,000 806,000 16,905,000 831,000 ============ ============ ============ ============
(1) Net income (loss) includes amortization of intangible lease liabilities of $579,999, $277,000, $1,555,000 and $590,000, respectively. The minority interests' share of such amortization was $36,000, $40,000, $111,000 and $103,000, respectively. Net income (loss) also includes a charge for the ineffective portion of the change in the fair value of the Company's derivative financial instruments of $236,000, $0, $596,000, and $0, respectively. Minority interests did not share in such charge. (2) The provision for tenant improvements and capital expenditures is calculated at the rate of $0.55 per sq. ft. per annum on the respective properties, excluding development/redevelopment properties. (3) Assumes conversion of OP Units. 10 CEDAR SHOPPING CENTERS, INC. PROPERTY SUMMARY AS OF SEPTEMBER 30, 2004
GROSS LEASABLE YEAR BUILT/ NUMBER YEAR PERCENT AREA YEAR LAST OF PERCENT PROPERTY ACQUIRED OWNED "GLA" RENOVATED TENANTS OCCUPIED - -------------------------------------------------------------------------------------------------------- STABILIZED PROPERTIES: The Point Shopping Center 2000 100% 255,447 1972/2001 19 93% Harrisburg, PA Port Richmond Village 2001 100% 154,908 1988 31 100% Philadelphia, PA Academy Plaza 2001 100% 152,878 1965/1998 34 100% Philadelphia, PA Washington Center Shoppes 2001 100% 154,240 1979/1995 28 98% Washington Township, NJ Red Lion Shopping Center 2002 20% 224,269 1970/2000 17 87% Philadelphia, PA Loyal Plaza 2002 25% 293,931 1969/2000 24 92% Williamsport, PA LA Fitness Facility 2002 50% 41,000 2003 1 100% Fort Washington, PA Fairview Plaza 2003 30% 69,579 1992 5 97% New Cumberland, PA Halifax Plaza 2003 30% 54,150 1994 9 100% Halifax, PA Newport Plaza 2003 30% 66,789 1996 9 100% Newport, PA Pine Grove Plaza Shopping Center 2003 100% 79,306 2001/2002 15 97% Pemberton Township, NJ
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AVERAGE MAJOR TENANTS [>=20,000 SF OF GLA] BASE RENT PER ---------------------------------------------------------- PROPERTY LEASED SF NAME SF LEASE EXPIRATION - ------------------------------------------------------------------------------------------------------------- STABILIZED PROPERTIES: The Point Shopping Center $10.41 Giant Foods 55,000 07/31/2021 Harrisburg, PA Burlington Coat Factory 76,665 01/31/2011 Staples 24,000 08/31/2013 A.C. Moore 20,000 07/31/2008 Port Richmond Village 12.07 Thriftway 40,000 10/31/2008 Philadelphia, PA Pep Boys 20,615 01/31/2009 Thrift Fair Stores 15,200 02/28/2008 Academy Plaza 11.21 Acme Markets 50,918 09/31/2018 Philadelphia, PA Raising Horizons Charter School 20,092 08/31/2005 Washington Center Shoppes 7.29 Acme Markets 66,046 12/02/2020 Washington Township, NJ Powerhouse Gym 20,742 12/31/2012 Red Lion Shopping Center 12.22 Best Buy Stores 46,000 01/31/2014 Philadelphia, PA Sports Authority 43,825 08/15/2005 Staples 23,942 07/31/2015 Loyal Plaza 7.13 K-Mart 102,558 08/31/2006 Williamsport, PA Giant Foods 66,935 10/31/2019 LA Fitness Facility 18.09 LA Fitness 41,000 12/31/2018 Fort Washington, PA Fairview Plaza 11.40 Giant Foods 59,237 02/28/2017 New Cumberland, PA Halifax Plaza 10.27 Giant Foods 32,000 10/11/2019 Halifax, PA Newport Plaza 10.08 Giant Foods 43,400 05/31/2021 Newport, PA Pine Grove Plaza Shopping Center 10.47 Peebles 24,963 01/31/2022 Pemberton Township, NJ
11 CEDAR SHOPPING CENTERS, INC. PROPERTY SUMMARY AS OF SEPTEMBER 30, 2004 (CONTINUED)
GROSS LEASABLE YEAR BUILT/ NUMBER YEAR PERCENT AREA YEAR LAST OF PERCENT PROPERTY ACQUIRED OWNED "GLA" RENOVATED TENANTS OCCUPIED - --------------------------------------------------------------------------------------------------------------- Swede Square Shopping Center 2003 100% 98,792 1980/2004 16 88% East Norriton, PA Valley Plaza Shopping Center 2003 100% 191,189 1975/1994 7 100% Hagerstown, MD Wal-Mart Shopping Center 2003 100% 155,842 1972/2000 8 95% Southington, CT South Philadelphia Shopping Plaza 2003 100% 283,486 1950/2003 25 87% Philadelphia, PA River View Plaza I, II and III 2003 100% 244,225 1991/1998 22 97% Philadelphia, PA Columbus Crossing Shopping Center 2003 100% 142,166 2001 9 100% Philadelphia, PA Sunset Crossings Shopping Center 2003 100% 74,142 2002 6 96% Dickson City, PA The Commons 2004 100% 175,121 2000 - 2003 21 98% DuBois, PA Townfair Center 2004 100% 203,531 1995 - 2002 11 97% White Township, PA Lake Raystown Plaza 2004 100% 84,292 1995 9 100% Huntingdon, PA ----------- ----------------- 3,199,283 326 95% ----------- -----------------
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AVERAGE MAJOR TENANTS [>=20,000 SF OF GLA] BASE RENT PER ---------------------------------------------------- PROPERTY LEASED SF NAME SF LEASE EXPIRATION - ---------------------------------------------------------------------------------------------------------- Swede Square Shopping Center 13.11 LA Fitness 37,200 06/30/2016 East Norriton, PA Valley Plaza Shopping Center 4.33 K-Mart 95,810 09/30/2009 Hagerstown, MD Ollie's 41,888 03/31/2011 Tractor Supply 32,095 05/31/2010 Wal-Mart Shopping Center 5.32 Wal-Mart 95,482 01/31/2020 Southington, CT Namco 20,000 01/31/2011 South Philadelphia Shopping Plaza 12.92 Shop Rite 54,388 09/30/2018 Philadelphia, PA Bally's Total Fitness 31,000 05/31/2017 Ross Stores 31,349 01/31/2013 Modell's 20,000 01/31/2018 Strauss Discount Auto 20,000 11/30/2013 River View Plaza I, II and III 18.26 United Artists 77,700 12/31/2018 Philadelphia, PA Pep Boys 22,000 09/30/2014 DA Lease Co. 25,000 01/31/2005 Columbus Crossing Shopping Center 15.22 Super Fresh Supermarket 61,506 09/30/2020 Philadelphia, PA Old Navy 25,000 09/30/2008 A.C. Moore 22,000 09/30/2011 Sunset Crossings Shopping Center 14.42 Giant Foods 54,332 06/30/2022 Dickson City, PA The Commons 10.03 Elder-Beerman Stores 54,500 01/31/2017 DuBois, PA Shop 'n Save 52,654 10/07/2015 Townfair Center 7.68 Lowe's Home Centers 95,173 12/31/2015 White Township, PA Shop 'n Save 50,000 02/08/2012 Lake Raystown Plaza 8.54 Giant Foods 39,244 07/31/2015 Huntingdon, PA -------- 10.65 --------
12 CEDAR SHOPPING CENTERS, INC. PROPERTY SUMMARY AS OF SEPTEMBER 30, 2004 (CONTINUED)
GROSS LEASABLE YEAR BUILT/ NUMBER YEAR PERCENT AREA YEAR LAST OF PERCENT PROPERTY ACQUIRED OWNED "GLA" RENOVATED TENANTS OCCUPIED - ----------------------------------------------------------------------------------------------------------- DEVELOPMENT/REDEVELOPMENT PROPERTIES: Camp Hill Mall 2002 100% 485,882 1958/2004 22 58% Camp Hill, PA Golden Triangle Shopping Center 2003 100% 191,581 1960/2004 15 63% Lancaster, PA Carbondale Plaza 2004 100% 129,915 1972 8 61% Carbondale, PA Huntingdon Plaza 2004 100% 151,277 1972 - 2003 13 50% Huntingdon, PA Hamburg Shopping Center 2004 100% 97,633 1988 - 1993 6 14% Hamburg, PA --------- ------------------- 1,056,288 64 54% --------- ------------------- TOTAL PORTFOLIO 4,255,571 390 85% ========= ==================
AVERAGE MAJOR TENANTS [>=20,000 SF OF GLA] BASE RENT PER --------------------------------------------- PROPERTY LEASED SF NAME SF LEASE EXPIRATION - -------------------------------------------------------------------------------------------------------- DEVELOPMENT/REDEVELOPMENT PROPERTIES: Camp Hill Mall 7.64 Boscov's 167,597 09/30/2010 Camp Hill, PA Giant Foods 42,070 01/31/2011 Barnes & Noble 24,908 01/31/2011 Golden Triangle Shopping Center 8.96 Marshalls 30,000 05/31/2010 Lancaster, PA Staples 24,060 05/31/2012 B&G Inc. 22,000 04/30/2009 Carbondale Plaza 5.24 Weis Markets 52,720 02/29/2016 Carbondale, PA Huntingdon Plaza 6.47 Peebles 22,060 01/31/2018 Huntingdon, PA Hamburg Shopping Center 10.55 Hamburg, PA --------- 7.50 --------- TOTAL PORTFOLIO $10.15 =========
13 CEDAR SHOPPING CENTERS, INC. DEBT SUMMARY AS OF SEPTEMBER 30, 2004 (UNAUDITED)
INT. RATE BALANCE BALANCE PERCENT MATURITY SEP 30, SEP 30, DEC 31, PROPERTY OWNED DATE 2004 2004 2003 - ---------------------------------------------------------------------------------------------------------- FIXED-RATE MORTGAGES: - ----------------------------- The Point 100.0% Sep 2012 7.625% $19,344,110 $19,575,315 Academy Plaza 100.0% Mar 2013 7.275% 10,316,418 10,422,358 Port Richmond Village 100.0% Apr 2008 7.174% 11,176,696 11,291,886 Washington Center Shoppes 100.0% Nov 2007 7.530% 5,769,806 5,826,179 Red Lion 20.0% Feb 2010 8.860% 16,494,642 16,590,396 Loyal Plaza 25.0% Jun 2011 7.180% 13,570,474 13,676,519 Camp Hill 100.0% Nov 2004 4.740% 7,000,000 7,000,000 Fairview Plaza 30.0% Feb 2013 5.710% 5,960,971 6,017,539 Halifax Plaza 30.0% Jan 2010 6.830% 4,122,500 4,190,000 Newport Plaza 30.0% Feb 2010 6.830% 3,811,500 3,870,000 Newport Plaza 30.0% Feb 2010 6.830% 1,452,384 1,475,784 Pine Grove Plaza 100.0% Apr 2010 6.240% 5,775,000 5,887,500 Pine Grove Plaza 100.0% Mar 2006 8.500% 440,345 413,242 Golden Triangle 100.0% Apr 2008 7.390% 9,664,589 9,825,318 Townfair Center 100.0% Mar 2008 6.960% 9,922,292 - ---------------------------------------------------------------- TOTAL FIXED-RATE DEBT 5.4 years 7.220% 124,821,727 116,062,036 --------------------------------- [wtd-avg maturity][wtd-avg rate] VARIABLE-RATE MORTGAGES: - ----------------------------- LA Fitness Facility 50.0% Dec 2007 5.750% 4,978,234 4,558,803 Camp Hill 100.0% Nov 2004 3.790% 7,000,000 7,000,000 Swede Square 100.0% May 2005 N/A - 5,560,000 Valley Plaza 100.0% Jun 2005 4.340% 6,361,583 6,361,583 Wal-Mart 100.0% Aug 2005 4.340% 5,440,991 5,440,988 --------------------------------- 23,780,808 28,921,374 Secured revolving credit facility 100.0% Jan 2007 4.032% 28,950,000 17,000,000 ---------------------------------------------------------------- TOTAL VARIABLE-RATE DEBT 1.8 years 4.230% 52,730,808 45,921,374 [wtd-avg maturity][wtd-avg rate] ---------------------------------------------------------------- TOTAL DEBT 4.3 years 6.330% $177,552,535 $161,983,410 - ----------------------------- ================================= [wtd-avg maturity][wtd-avg rate]
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PRO RATA SHARE -------------------------------- SEP 30, DEC 31, PROPERTY 2004 2003 - ------------------------------- ---------------------------------- FIXED-RATE MORTGAGES: - ----------------------------- The Point $19,344,110 $19,575,315 Academy Plaza 10,316,418 10,422,358 Port Richmond Village 11,176,696 11,291,886 Washington Center Shoppes 5,769,806 5,826,179 Red Lion 3,298,928 3,318,079 Loyal Plaza 3,392,619 3,419,130 Camp Hill 7,000,000 7,000,000 Fairview Plaza 1,788,291 1,805,262 Halifax Plaza 1,236,750 1,257,000 Newport Plaza 1,143,450 1,161,000 Newport Plaza 435,715 442,735 Pine Grove Plaza 5,775,000 5,887,500 Pine Grove Plaza 440,345 413,242 Golden Triangle 9,664,589 9,825,318 Townfair Center 9,922,292 - --------------------------------- TOTAL FIXED-RATE DEBT 90,705,009 81,645,004 --------------------------------- VARIABLE-RATE MORTGAGES: - ----------------------------- LA Fitness Facility 2,489,117 2,279,402 Camp Hill 7,000,000 7,000,000 Swede Square - 5,560,000 Valley Plaza 6,361,583 6,361,583 Wal-Mart 5,440,991 5,440,988 --------------------------------- 21,291,691 26,641,973 Secured revolving credit facility 28,950,000 17,000,000 --------------------------------- TOTAL VARIABLE-RATE DEBT 50,241,691 43,641,973 --------------------------------- TOTAL DEBT $140,946,700 $125,286,976 - ----------------------------- =================================
14 CEDAR SHOPPING CENTERS, INC. DEBT SUMMARY AS OF SEPTEMBER 30, 2004 (UNAUDITED) (CONTINUED)
MORTGAGE DEBT ------------------------------- SECURED SCHEDULED BALLOON REVOLVING MATURITY SCHEDULE BY YEAR AMORTIZATION PAYMENTS CREDIT FACILITY TOTAL - ---------------------------------------------------------------------------------------------------------- 2004 $458,648 $14,000,000 $14,458,648 2005 1,882,804 11,802,574 13,685,378 2006 2,010,777 431,119 2,441,896 2007 2,089,102 10,487,717 $28,950,000 41,526,819 2008 1,599,797 28,644,387 30,244,184 2009 1,542,018 - 1,542,018 2010 1,117,717 28,832,891 29,950,608 2011 992,470 12,285,642 13,278,112 2012 759,348 15,900,641 16,659,989 2013 53,733 13,711,150 13,764,883 ------------------------------------------------------------------- $12,506,414 $136,096,121 $28,950,000 $177,552,535 ===================================================================
Mortgage loans maturing during the period ending December 31, 2004 include a $14 million mortgage loan secured by the Camp Hill Mall. The Company expects to arrange new financing which would provide for (1) the repayment of the existing mortgage, and (2) the completion of the redevelopment program at the property. If such financing is not in place by the due date of the existing mortgage, the Company expects that the $14 million loan will be temporarily refinanced from its secured revolving credit facility. 15 CEDAR SHOPPING CENTERS, INC CONSOLIDATED JOINT VENTURES INFORMATION (UNAUDITED)
AS OF SEPTEMBER 30, 2004 --------------------------------------------------------------------------------------------- MORTGAGE OTHER ASSETS EQUITY (A) PARTNERS' REAL ESTATE, LOANS LIABILITIES, -------------------------------------------- PROPERTY PERCENT NET PAYABLE NET PARTNERS CEDAR (B) TOTAL - -------------------------------------------------------------------------------------------------------------------------------- Loyal Plaza 75% $ 19,123,418 $ 13,570,474 $ 741,493 $ 4,504,164 $ 1,790,273 $ 6,294,437 Red Lion 80% 19,193,302 16,494,642 1,646,439 2,947,780 1,397,319 4,345,099 Fairview Plaza (c) 70% 8,775,678 5,960,971 (327,026) 1,605,677 882,004 2,487,681 Halifax Plaza (c) 70% 5,518,814 4,122,500 (123,984) 1,189,379 82,951 1,272,330 Newport Plaza (c) 70% 6,413,358 5,263,884 46,043 1,082,249 113,268 1,195,517 LA Fitness Facility 50% 5,955,291 4,978,234 201,414 871,584 306,887 1,178,471 ------------------------------------------------------------------------------------------- $ 64,979,861 $ 50,390,705 $ 2,184,379 $ 12,200,833 $ 4,572,702 $ 16,773,535 ===========================================================================================
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 ----------------------------------------------------------------------------- SHARE OF PROPERTY NET INCOME ---------------------------------- PROPERTY-LEVEL OPERATIONS PARTNERS PARTNERS' ------------------------------------- ---------------------------------- PROPERTY PERCENT REVENUES EXPENSES NET INCOME REGULAR PREFERENCE CEDAR (B) - ---------------------------- ------------------------------------- ---------------------------------- Loyal Plaza 75% $ 2,031,332 $ 1,617,582 $ 413,750 $ 310,313 $ 103,437 $ - Red Lion 80% 2,360,061 2,353,029 7,032 5,626 - 1,406 Fairview Plaza (c) 70% 706,437 512,778 193,659--| | Halifax Plaza (c) 70% 535,935 444,741 91,194 |-> 294,699 25,260 70,501 | Newport Plaza (c) 70% 669,400 533,254 136,146--| LA Fitness Facility 50% 557,860 320,585 237,275 118,637 - 118,638 ------------------------------------- ---------------------------------- $ 6,861,025 $ 5,781,969 $ 1,079,056 $ 729,275 $ 128,697 $ 190,545 ===================================== ==================================
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FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 -------------------------------------------- SHARE OF FFO PARTNERS' --------------------------------- PROPERTY PERCENT PARTNERS CEDAR (B) TOTAL - ---------------------------- --------------------------------- Loyal Plaza 75% $ 536,812 $ 180,777 $ 717,589 Red Lion 80% 264,535 66,134 330,669 Fairview Plaza (c) 70%--| | Halifax Plaza (c) 70% |-> 532,132 213,128 745,260 | Newport Plaza (c) 70%--| LA Fitness Facility 50% 156,847 156,847 313,694 --------------------------------- $1,490,326 $ 616,886 $2,107,212 =================================
(a) The Partners/Cedar shares of equity, as presented, differ from amounts calculated using the stated ownership percentages because of (1) non-proportionate initial investments (per the respective joint venture agreements), and (2) the cumulative effect of preference returns to joint venture partners. (b) Includes limited partners' share. (c) As each of these three properties is under an umbrella partnership, any shortfall in required preference payments by any one of the properties will be offset by excess cash flow from any of the other properties. 16 CEDAR SHOPPING CENTERS, INC. TENANT CONCENTRATION SCHEDULE AS OF SEPTEMBER 30, 2004 (UNAUDITED)
% OF TOTAL AVERAGE NUMBER % OF TOTAL ANNUALIZED ANNUALIZED ANNUALIZED TENANT OF STORES SF SF BASE RENT BASE RENT BASE RENT - ------------------------------------------------------------------------------------------------------------------------------ Top ten tenants: Giant Foods 8 392,218 9.2% $4,040,130 11.0% $10.30 United Artists Theatre Group 1 77,700 1.8% 1,328,950 3.6% 17.10 Staples 4 90,002 2.1% 1,254,704 3.4% 13.94 LA Fitness 2 78,200 1.8% 1,115,928 3.0% 14.27 Shop 'n Save 2 102,654 2.4% 854,151 2.3% 8.32 Boscov's 1 167,597 3.9% 742,071 2.0% 4.43 Super Fresh 1 61,506 1.4% 650,000 1.8% 10.57 Best Buy 1 46,000 1.1% 619,083 1.7% 13.46 Shop Rite 1 54,388 1.3% 595,005 1.6% 10.94 Lowe's Home Center 1 95,173 2.2% 585,314 1.6% 6.15 ---------------------------------------------------------------------------------------- SUB-TOTAL TOP TEN TENANTS 22 1,165,438 27.4% 11,785,337 32.1% 10.11 Remaining tenants 368 2,451,205 57.6% 24,929,819 67.9% 10.17 ---------------------------------------------------------------------------------------- SUB-TOTAL ALL TENANTS 390 3,616,643 85.0% 36,715,156 100.0% 10.15 Vacant N/A 638,928 15.0% N/A N/A N/A ---------------------------------------------------------------------------------------- TOTAL (INCLUDING VACANT) 390 4,255,571 100.0% $36,715,156 100.0% $8.63 ========================================================================================
17 CEDAR SHOPPING CENTERS, INC. LEASE EXPIRATION SCHEDULE AS OF SEPTEMBER 30, 2004 (UNAUDITED)
% OF TOTAL AVERAGE YEAR OF NUMBER % OF TOTAL ANNUALIZED ANNUALIZED ANNUALIZED BASE EXPIRATION OF TENANTS SF SF BASE RENT BASE RENT RENT PER SF - ------------------------------------------------------------------------------------------------------------------------------- M-T-M 9 23,611 0.6% $ 311,528 0.8% $13.19 2004 9 18,512 0.4% 282,368 0.8% 15.25 2005 43 207,700 4.9% 2,766,047 7.5% 13.32 2006 57 293,597 6.9% 3,164,258 8.6% 10.78 2007 60 235,392 5.5% 3,058,655 8.3% 12.99 2008 50 281,236 6.6% 3,723,425 10.1% 13.24 2009 52 296,747 7.0% 2,647,772 7.2% 8.92 2010 13 281,763 6.6% 1,650,930 4.5% 5.86 2011 16 288,761 6.8% 2,394,495 6.5% 8.29 2012 21 203,698 4.8% 2,101,248 5.7% 10.32 2013 13 112,334 2.6% 1,272,427 3.5% 11.33 Thereafter 47 1,373,292 32.3% 13,342,004 36.3% 9.72 ----------------------------------------------------------------------------------------------- 390 3,616,643 85.0% 36,715,156 100.0% 10.15 Vacant N/A 638,928 15.0% N/A N/A N/A ----------------------------------------------------------------------------------------------- TOTAL (INCLUDING VACANT) 390 4,255,571 100.0% $36,715,156 100.0% $8.63 ===============================================================================================
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