Cedar Realty Trust (CDR)

Risks

• The geographic concentration of our properties in the Washington, D.C. to Boston corridor exposes us to greater economic risks than if the distribution of our properties encompassed a broader region.
• Anchor tenants are crucial to the success of our retail properties and vacated anchor space directly and indirectly affects our rental revenues.
• Our performance and value are subject to risks associated with real estate assets and with the real estate industry.
• As substantially all of our revenue is derived from rental income, failure of tenants to pay rent or delays in arranging leases and occupancy at our properties could seriously harm our operating results and financial condition.
• We face potential material adverse effects from tenant bankruptcies.
• Our development and redevelopment activities may not yield anticipated returns, which would harm our operating results and reduce funds available for distributions to stockholders.
• “New Technology” developments may negatively impact our tenants and our business.
• Competition may impede our ability to renew leases or re‑let spaces as leases expire, as well as impede our further growth, which could harm our business and operating results.
• Mortgage debt obligations could expose us to the possibility of foreclosure, which could result in the loss of our investment in a property or group of properties subject to mortgage debt.
• Our properties may be subject to impairment charges.
• Our capital migration strategy entails various risks.
• Commercial real estate investments are relatively illiquid.
• Our business could be negatively affected by stockholder activism, which could impact the trading price and volatility of our common stock.
• The level of our indebtedness and any constraints on credit may impede our operating performance, and put us at a competitive disadvantage.
• We may be exposed to additional risks through our hedging activities, including the risks that a counterparty will not perform and that the hedge will not yield the economic benefits we anticipate.
• The financial covenants in our loan agreements may restrict our operating or acquisition activities, which may harm our financial condition and operating results.
• Our strategic alternatives process may not result in a successful corporate transaction or liquidity event.
• As a relatively small public REIT, our general and administrative expenses constitute a larger percentage of our total revenues than those of many of our peers.
• Natural disasters and severe weather conditions could have an adverse impact on our cash flow and operating results.
• Potential losses may not be covered by insurance.
• Future terrorist attacks and shooting incidents could harm the demand for, and the value of, our properties.
• We could incur significant costs related to government regulation and litigation over environmental matters and various other federal, state and local regulatory requirements.
• The Americans with Disabilities Act of 1990 (the “ADA”) could require us to take remedial steps with respect to our properties.
• If we fail to continue to qualify as a REIT, our distributions will not be deductible, and our income will be subject to taxation, thereby reducing earnings available for distribution.
• Complying with REIT requirements may cause us to forego otherwise attractive opportunities and limit our growth opportunities.
• If our Operating Partnership is treated as a corporation for U.S. federal income tax purposes, we will cease to qualify as a REIT.
• Our property taxes could increase due to property tax rate changes or reassessment, which could impact our cash flow.
• Frequent asset sales could trigger adverse tax consequences.
• The partnership audit rules may alter who bears the liability in the event any subsidiary partnership (such as our Operating Partnership) is audited and an adjustment is assessed.
• Failure to qualify as a domestically-controlled REIT could subject our non-U.S. stockholders to adverse U.S. federal income tax consequences.
• We may choose to make distributions in our own stock, in which case you may be required to pay income taxes without receiving any cash dividends.
• Dividends paid by REITs generally do not qualify for reduced tax rates.
• Our charter and Maryland law contain provisions that may delay, defer or prevent a change of control transaction and depress our stock price.
• Our ability to pay dividends is limited by the requirements of Maryland law.
• Our Board of Directors may change our strategy without stockholder approval.
• The rights of stockholders to take action against our directors and officers are limited.
• We face risks relating to cybersecurity attacks, loss of confidential information and other business disruptions.
• Our success depends on key personnel whose continued service is not guaranteed.
• We could be subject to litigation that may negatively impact our cash flows, financial condition and results of operations.