Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At ~~October 29, 2021,~~August 2, 2022, there were ~~13,660,585~~13,555,307 shares of Common Stock, $0.06 par value, outstanding.

Certain statements made in this Current Report on Form 10-Q 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, may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Cedar Realty Trust, Inc. (the “Company”) to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words “may”, “will”, “should”, “estimates”, “projects”, “anticipates”, “believes”, “expects”, “intends”, “future”, and words of similar import, or the negative thereof. Factors that could cause actual results, performance or achievements to differ materially from current expectations include, but are not limited to: (i) the ~~economic, political and social impact~~possibility that any or all of ~~and uncertainty relating~~the various conditions to the ~~COVID-19 pandemic, including: (a)~~consummation of the ~~effectiveness~~Merger (as defined herein) may not be satisfied or ~~lack~~waived; (ii) the ability of ~~effectiveness of governmental relief~~the parties to the Merger to obtain required financing in ~~providing assistance to large and small businesses, particularly including our retail tenants and other retailers,~~connection with the proposed Merger; (iii) the possibility that ~~have suffered significant declines in revenues as a result of mandatory business shut-downs, “shelter-in-place”~~competing offers or ~~“stay-at-home” orders and social distancing practices, as well as individuals adversely impacted by~~acquisition proposals for the ~~COVID-19 pandemic, (b)~~Company and/or its assets will be made; (iv) the ~~duration~~occurrence of any ~~such orders~~event, change or other ~~formal recommendations for social distancing and~~circumstance that could give rise to the ~~speed and extent to which revenues of our retail tenants recover following the lifting of any such orders or recommendations, (c) the potential impact of any such events on the obligations~~termination of the ~~Company’s tenants~~Merger Agreement (as defined herein), including in circumstances which would require the Company to ~~make rent~~pay a termination fee or other expenses; (v) the risk that shareholder litigation in connection with the Transactions (as defined herein) may result in significant costs of defense, indemnification and other payments or honor other commitments under existing leases, (d) the potential adverse impact on returns from redevelopment projects, (e) to the extent we were seeking to sell properties in the near term, significantly greater uncertainty regarding our ability to do so at attractive prices, and (f) the broader impact of the severe economic contraction and increase in unemployment that has occurred in the short term and negative consequences that will occur if these trends are not quickly reversed; (ii)liability; (vi) the ability and willingness of the ~~Company’s~~Company's tenants and other third parties to satisfy their obligations under their respective contractual arrangements with the Company; ~~(iii)~~(vii) the loss or bankruptcy of the ~~Company’s~~Company's tenants, particularly in light of the adverse impact to the financial health of many retailers that has occurred and continues to occur as a result of the COVID-19 pandemic; ~~(iv)~~(viii) the ability and willingness of the ~~Company’s~~Company's tenants to renew their leases with the Company upon expiration, the ~~Company’s~~Company's ability to re-lease its properties on the same or better terms in the event of nonrenewal or in the event the Company exercises its right to replace an existing tenant, and obligations the Company may incur in connection with the replacement of an existing tenant, particularly, in light of the adverse impact to the financial health of many retailers that has occurred and continues to occur as a result of the COVID-19 pandemic, and the significant uncertainty as to when and the conditions under which potential tenants will be able to operate physical retail locations in future; (v) macroeconomic conditions, such as a disruption of or lack of access to capital markets and the adverse impact of the recent significant decline in the Company’s share price from prices prior to the spread of the COVID-19 pandemic; (vi) financing risks, such as the Company’s inability to obtain new financing or refinancing on favorable terms as the result of market volatility or instability; (vii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors, including the potential phasing out of LIBOR after 2021; (viii) the impact of the Company’s leverage on operating performance;tenant; (ix) risks related to the market for retail space generally, including reductions in consumer spending, variability in retailer demand for leased space, adverse impact of e-commerce, ongoing consolidation in the retail sector and changes in economic conditions and consumer confidence; (x) risks endemic to real estate and the real estate industry generally; (xi) ~~competitive risks; (xii) risks related to the geographic concentration of the Company’s properties in the Washington, D.C. to Boston corridor; (xiii)~~ damage to the ~~Company’s~~Company's properties from catastrophic weather and other natural events, and the physical effects of climate change; ~~(xiv) the inability of the Company to realize anticipated returns from its redevelopment activities; (xv)~~(xii) uninsured losses; ~~(xvi)~~(xiii) the ~~Company’s~~Company's ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; and ~~(xvii)~~(xiv) information technology security breaches. For further discussion of factors that could materially affect the outcome of forward-looking statements, see “Risk Factors” in Part I, Item 1A, of the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 and other documents that the Company files with the Securities and Exchange Commission from time to time.

Except for ongoing obligations to disclose material information as required by the federal securities laws, the Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. All of the above factors are difficult to predict, contain uncertainties that may materially affect the Company’s actual results and may be beyond the Company’s control. New factors emerge from time to time, and it is not possible for the Company’s management to predict all such factors or to assess the effects of each factor on the Company’s business. Accordingly, there can be no assurance that the Company’s current expectations will be realized.

	September 30,			December 31,			June 30,			December 31,
	2021			2020			2022			2021
ASSETS
Real estate:
Land	$	280,238,000		$	284,694,000		$	68,865,000		$	68,865,000
Buildings and improvements		1,117,950,000			1,242,784,000			301,263,000			300,962,000
		1,398,188,000			1,527,478,000			370,128,000			369,827,000
Less accumulated depreciation		(432,488,000	)		(428,569,000	)		(159,992,000	)		(155,250,000	)
Real estate, net		965,700,000			1,098,909,000			210,136,000			214,577,000

Real estate held for sale		1,876,000			9,498,000			719,312,000			757,037,000
Investment in unconsolidated joint venture		3,193,000			-			4,809,000			4,654,000
Cash and cash equivalents		4,731,000			1,637,000			1,042,000			3,039,000
Restricted cash		230,000			-			230,000			230,000
Receivables		22,290,000			21,952,000			13,098,000			13,580,000
Other assets and deferred charges, net		38,751,000			45,255,000			21,522,000			23,777,000
TOTAL ASSETS	$	1,036,771,000		$	1,177,251,000		$	970,149,000		$	1,016,894,000

LIABILITIES AND EQUITY
Mortgage loan payable	$	157,040,000		$	45,385,000
Finance lease obligation		5,324,000			5,340,000
Mortgage loan payable - held for sale							$	156,356,000		$	156,821,000
Finance lease obligation - held for sale								5,300,000			5,314,000
Unsecured revolving credit facility		66,000,000			175,000,000			41,000,000			66,000,000
Unsecured term loans		298,809,000			398,549,000			299,092,000			298,903,000
Accounts payable and accrued liabilities		45,173,000			56,580,000			61,301,000			42,099,000
Unamortized intangible lease liabilities		8,066,000			8,939,000			5,040,000			5,367,000
Unamortized intangible lease liabilities - held for sale								2,238,000			2,422,000
Total liabilities		580,412,000			689,793,000			570,327,000			576,926,000

Commitments and contingencies		-			-			-			-

Equity:
Cedar Realty Trust, Inc. shareholders' equity:
Preferred stock		159,541,000			159,541,000			159,541,000			159,541,000
Common stock ($0.06 par value, 150,000,000 shares authorized, 13,669,000 and 13,530,000 shares, issued and outstanding, respectively)		820,000			812,000
Treasury stock (415,000 and 447,000 shares, respectively, at cost)		(13,862,000	)		(15,133,000	)
Common stock ($0.06 par value, 150,000,000 shares authorized, 13,558,000 and 13,658,000 shares, issued and outstanding, respectively)								814,000			820,000
Treasury stock (332,000 and 387,000 shares, respectively, at cost)								(10,760,000	)		(13,266,000	)
Additional paid-in capital		879,900,000			879,790,000			877,981,000			881,009,000
Cumulative distributions in excess of net income		(562,124,000	)		(522,696,000	)		(632,383,000	)		(582,464,000	)
Accumulated other comprehensive (loss)		(12,050,000	)		(18,816,000	)
Accumulated other comprehensive income (loss)								3,135,000			(8,258,000	)
Total Cedar Realty Trust, Inc. shareholders' equity		452,225,000			483,498,000			398,328,000			437,382,000
Noncontrolling interests:
Minority interests in consolidated joint ventures		1,450,000			1,053,000
Limited partners' OP Units		2,684,000			2,907,000			1,494,000			2,586,000
Total noncontrolling interests		4,134,000			3,960,000			1,494,000			2,586,000
Total equity		456,359,000			487,458,000			399,822,000			439,968,000
TOTAL LIABILITIES AND EQUITY	$	1,036,771,000		$	1,177,251,000		$	970,149,000		$	1,016,894,000

	Three months ended September 30,						Nine months ended September 30,						Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020			2022			2021			2022			2021
REVENUES
Rental revenues	$	30,395,000		$	30,890,000		$	95,611,000		$	94,466,000		$	8,367,000		$	10,603,000		$	16,443,000		$	21,445,000
Other		167,000			285,000			722,000			7,814,000			136,000			241,000			338,000			334,000
Total revenues		30,562,000			31,175,000			96,333,000			102,280,000			8,503,000			10,844,000			16,781,000			21,779,000
EXPENSES
Operating, maintenance and management		5,570,000			5,579,000			19,646,000			18,808,000			2,019,000			1,842,000			3,816,000			4,160,000
Real estate and other property-related taxes		4,797,000			5,253,000			14,968,000			15,353,000			1,526,000			1,822,000			2,768,000			3,680,000
General and administrative		4,229,000			3,925,000			13,630,000			12,833,000			2,861,000			5,096,000			5,773,000			9,500,000
Depreciation and amortization		9,510,000			10,035,000			30,978,000			38,208,000			2,850,000			2,976,000			5,351,000			6,437,000
Total expenses		24,106,000			24,792,000			79,222,000			85,202,000			9,256,000			11,736,000			17,708,000			23,777,000

OTHER
Gain on sales		-			679,000			49,904,000			679,000			-			48,857,000			-			48,857,000
Impairment charges		(82,736,000	)		-			(80,887,000	)		(7,607,000	)
Transaction costs														(30,457,000	)		-			(34,192,000	)		-
Impairment (charges) reversal														(2,000	)		1,849,000			(199,000	)		1,849,000
Total other		(82,736,000	)		679,000			(30,983,000	)		(6,928,000	)		(30,459,000	)		50,706,000			(34,391,000	)		50,706,000

OPERATING (LOSS) INCOME		(76,280,000	)		7,062,000			(13,872,000	)		10,150,000			(31,212,000	)		49,814,000			(35,318,000	)		48,708,000

NON-OPERATING INCOME AND EXPENSES
Interest expense		(4,603,000	)		(5,658,000	)		(14,294,000	)		(16,853,000	)		(3,130,000	)		(3,803,000	)		(5,837,000	)		(7,982,000	)
Total non-operating income and expenses		(4,603,000	)		(5,658,000	)		(14,294,000	)		(16,853,000	)		(3,130,000	)		(3,803,000	)		(5,837,000	)		(7,982,000	)

NET (LOSS) INCOME FROM CONTINUING OPERATIONS														(34,342,000	)		46,011,000			(41,155,000	)		40,726,000

DISCONTINUED OPERATIONS
Income from operations														7,698,000			5,453,000			13,946,000			10,944,000
Impairment charges														(16,119,000	)		-			(16,630,000	)		-
Gain on sales														-			-			-			1,047,000
Total (loss) income from discontinued operations														(8,421,000	)		5,453,000			(2,684,000	)		11,991,000

NET (LOSS) INCOME		(80,883,000	)		1,404,000			(28,166,000	)		(6,703,000	)		(42,763,000	)		51,464,000			(43,839,000	)		52,717,000

Net loss (income) attributable to noncontrolling interests:
Minority interests in consolidated joint ventures		(125,000	)		(144,000	)		(397,000	)		(460,000	)		-			(122,000	)		-			(272,000	)
Limited partners' interest in Operating Partnership		492,000			7,000			214,000			87,000			176,000			(287,000	)		196,000			(278,000	)
Total net loss (income) attributable to noncontrolling interests		367,000			(137,000	)		(183,000	)		(373,000	)		176,000			(409,000	)		196,000			(550,000	)

NET (LOSS) INCOME ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.		(80,516,000	)		1,267,000			(28,349,000	)		(7,076,000	)		(42,587,000	)		51,055,000			(43,643,000	)		52,167,000

Preferred stock dividends		(2,688,000	)		(2,688,000	)		(8,064,000	)		(8,064,000	)		(2,688,000	)		(2,688,000	)		(5,376,000	)		(5,376,000	)

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(83,204,000	)	$	(1,421,000	)	$	(36,413,000	)	$	(15,140,000	)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS													$	(45,275,000	)	$	48,367,000		$	(49,019,000	)	$	46,791,000

NET LOSS PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND DILUTED):	$	(6.28	)	$	(0.11	)	$	(2.77	)	$	(1.17	)
NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND DILUTED):
Continuing operations													$	(2.78	)	$	3.11		$	(3.49	)	$	2.51
Discontinued operations														(0.63	)		0.41			(0.20	)		0.90
													$	(3.41	)	$	3.52		$	(3.69	)	$	3.41

Weighted average number of common shares - basic and diluted		13,252,000			13,110,000			13,191,000			13,101,000			13,288,000			13,197,000			13,287,000			13,171,000

	Three months ended September 30,						Nine months ended September 30,						Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020			2022			2021			2022			2021

Net (loss) income	$	(80,883,000	)	$	1,404,000		$	(28,166,000	)	$	(6,703,000	)	$	(42,763,000	)	$	51,464,000		$	(43,839,000	)	$	52,717,000

Unrealized gain (loss) on change in fair value of cash flow hedges		1,595,000			1,480,000			6,811,000			(14,122,000	)
Unrealized gain on change in fair value of cash flow hedges														3,114,000			1,019,000			11,452,000			5,216,000

Comprehensive (loss) income		(79,288,000	)		2,884,000			(21,355,000	)		(20,825,000	)		(39,649,000	)		52,483,000			(32,387,000	)		57,933,000

Comprehensive loss (income) attributable to noncontrolling interests		358,000			(146,000	)		(228,000	)		(289,000	)		166,000			(419,000	)		137,000			(586,000	)

Comprehensive (loss) income attributable to Cedar Realty Trust, Inc.	$	(78,930,000	)	$	2,738,000		$	(21,583,000	)	$	(21,114,000	)	$	(39,483,000	)	$	52,064,000		$	(32,250,000	)	$	57,347,000

	Cedar Realty Trust, Inc. Shareholders																								Cedar Realty Trust, Inc. Shareholders
																Cumulative			Accumulated																							Cumulative			Accumulated
										Treasury			Additional			distributions			other																	Treasury			Additional			distributions			other
	Preferred stock				Common stock					stock,			paid-in			in excess of			comprehensive						Preferred stock				Common stock							stock,			paid-in			in excess of			comprehensive
	Shares		Amount		Shares			Amount		at cost			capital			net income			loss			Total			Shares		Amount		Shares			Amount				at cost			capital			net income			(income) loss			Total
Balance, December 31, 2020		6,450,000	$	159,541,000		13,530,000		$	812,000	$	(15,133,000	)	$	879,790,000		$	(522,696,000	)	$	(18,816,000	)	$	483,498,000
Net income (loss)		—		—		—			—		—			—			1,112,000			—			1,112,000
Balance, December 31, 2021																										6,450,000	$	159,541,000		13,658,000		$	820,000			$	(13,266,000	)	$	881,009,000		$	(582,464,000	)	$	(8,258,000	)	$	437,382,000
Net (loss)																										—		—		—			—				—			—			(1,056,000	)		—			(1,056,000	)
Unrealized gain on change in fair value of cash flow hedges		—		—		—			—		—			—			—			4,171,000			4,171,000			—		—		—			—				—			—			—			8,289,000			8,289,000
Share-based compensation, net		—		—		99,000			6,000		1,172,000			(397,000	)		—			—			781,000			—		—		(21,000	)		(1,000	)			2,459,000			(2,498,000	)		—			—			(40,000	)
Common stock sales, net of issuance expenses		—		—		—			—		—			1,000			—			—			1,000			—		—		—			—				—			1,000			—			—			1,000
Preferred stock dividends		—		—		—			—		—			—			(2,688,000	)		—			(2,688,000	)		—		—		—			—				—			—			(2,688,000	)		—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		—		—			—		—			—			(899,000	)		—			(899,000	)		—		—		—			—		��		—			—			(900,000	)		—			(900,000	)
Reallocation adjustment of limited partners' interest		—		—		—			—		—			19,000			—			—			19,000			—		—		—			—				—			(4,000	)		—			—			(4,000	)
Balance, March 31, 2021		6,450,000		159,541,000		13,629,000			818,000		(13,961,000	)		879,413,000			(525,171,000	)		(14,645,000	)		485,995,000
Net income		—		—		—			—		—			—			51,055,000			—			51,055,000
Unrealized (loss) on change in fair value of cash flow hedges		—		—		—			—		—			—			—			1,009,000			1,009,000
Share-based compensation, net		—		—		(1,000	)		—		50,000			1,039,000			—			—			1,089,000
Common stock sales, net of issuance expenses		—		—		—			—		—			1,000			—			—			1,000
Preferred stock dividends		—		—		—			—		—			—			(2,688,000	)		—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		—		—			—		—			—			(1,188,000	)		—			(1,188,000	)
Redemption of OP units		—		—		—			—		—			—			—			—			—
Reallocation adjustment of limited partners' interest		—		—		—			—		—			38,000			—			—			38,000
Balance, June 30, 2021		6,450,000		159,541,000		13,628,000			818,000		(13,911,000	)		880,491,000			(477,992,000	)		(13,636,000	)		535,311,000
Net (loss) income		—		—		—			—		—			—			(80,516,000	)		—			(80,516,000	)
Balance, March 31, 2022																										6,450,000		159,541,000		13,637,000			819,000				(10,807,000	)		878,508,000			(587,108,000	)		31,000			440,984,000
Net (loss)																										—		—		—			—				—			—			(42,587,000	)		—			(42,587,000	)
Unrealized gain on change in fair value of cash flow hedges		—		—		—			—		—			—			—			1,586,000			1,586,000			—		—		—			—				—			—			—			3,104,000			3,104,000
Share-based compensation, net		—		—		41,000			2,000		49,000			(567,000	)		—			—			(516,000	)		—		—		(79,000	)		(5,000	)			47,000			245,000			—			—			287,000
Common stock sales, net of issuance expenses		—		—		—			—		—			2,000			—			—			2,000
Purchase of OP Units																										—		—		—			—				—			—			—			—			—
Preferred stock dividends		—		—		—			—		—			—			(2,688,000	)		—			(2,688,000	)		—		—		—			—				—			—			(2,688,000	)		—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		—		—			—		—			—			(928,000	)		—			(928,000	)
Acquisition of minority interests																										—		—		—			—				—			(1,000,000	)		—			—			(1,000,000	)
Reallocation adjustment of limited partners' interest		—		—		—			—		—			(26,000	)		—			—			(26,000	)		—		—		—			—				—			228,000			—			—			228,000
Balance, September 30, 2021		6,450,000	$	159,541,000		13,669,000		$	820,000	$	(13,862,000	)	$	879,900,000		$	(562,124,000	)	$	(12,050,000	)	$	452,225,000
Balance, June 30, 2022																										6,450,000	$	159,541,000		13,558,000		$	814,000			$	(10,760,000	)	$	877,981,000		$	(632,383,000	)	$	3,135,000		$	398,328,000

	Noncontrolling Interests											Noncontrolling Interests
	Minority		Limited									Minority		Limited
	interest in		partners'									interest in		partners'
	consolidated		interest in									consolidated		interest in
	joint		Operating						Total			joint		Operating						Total
	ventures		Partnership			Total			Equity			ventures		Partnership			Total			Equity
Balance, December 31, 2020	$	1,053,000	$	2,907,000		$	3,960,000		$	487,458,000
Net income (loss)		150,000		(9,000	)		141,000			1,253,000
Balance, December 31, 2021												$	-	$	2,586,000		$	2,586,000		$	439,968,000
Net (loss)													-		(20,000	)		(20,000	)		(1,076,000	)
Unrealized gain on change in fair value of cash flow hedges		—		26,000			26,000			4,197,000			-		49,000			49,000			8,338,000
Share-based compensation, net		—		—			—			781,000			-		—			—			(40,000	)
Common stock sales, net of issuance expenses		—		—			—			1,000			-		—			—			1,000
Preferred stock dividends		—		—			—			(2,688,000	)		-		—			—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		(5,000	)		(5,000	)		(904,000	)		-		(5,000	)		(5,000	)		(905,000	)
Reallocation adjustment of limited partners' interest		—		(19,000	)		(19,000	)		—			-		4,000			4,000			—
Balance, March 31, 2021		1,203,000		2,900,000			4,103,000			490,098,000
Net (loss) income		122,000		287,000			409,000			51,464,000
Unrealized (loss) on change in fair value of cash flow hedges		—		10,000			10,000			1,019,000
Share-based compensation, net		—		—			—			1,089,000
Common stock sales, net of issuance expenses		—		—			—			1,000
Preferred stock dividends		—		—			—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		(5,000	)		(5,000	)		(1,193,000	)
Redemption of OP units		—		(8,000	)		(8,000	)		(8,000	)
Reallocation adjustment of limited partners' interest		—		(38,000	)		(38,000	)		—
Balance, June 30, 2021		1,325,000		3,146,000			4,471,000			539,782,000
Net (loss) income		125,000		(492,000	)		(367,000	)		(80,883,000	)
Balance, March 31, 2022													-		2,614,000			2,614,000			443,598,000
Net (loss)													-		(176,000	)		(176,000	)		(42,763,000	)
Unrealized gain on change in fair value of cash flow hedges		—		9,000			9,000			1,595,000			-		10,000			10,000			3,114,000
Share-based compensation, net		—		—			—			(516,000	)		-		-			-			287,000
Common stock sales, net of issuance expenses		—		—			—			2,000
Purchase of OP Units													-		(726,000	)		(726,000	)		(726,000	)
Preferred stock dividends		—		—			—			(2,688,000	)		-		-			-			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		(5,000	)		(5,000	)		(933,000	)
Acquisition of minority interests													-		-			-			(1,000,000	)
Reallocation adjustment of limited partners' interest		—		26,000			26,000			—			-		(228,000	)		(228,000	)		—
Balance, September 30, 2021	$	1,450,000	$	2,684,000		$	4,134,000		$	456,359,000
Balance, June 30, 2022												$	-	$	1,494,000		$	1,494,000		$	399,822,000

	Cedar Realty Trust, Inc. Shareholders																								Cedar Realty Trust, Inc. Shareholders
																Cumulative			Accumulated																					Cumulative			Accumulated
										Treasury			Additional			distributions			other															Treasury			Additional			distributions			other
	Preferred stock				Common stock					stock,			paid-in			in excess of			comprehensive						Preferred stock				Common stock					stock,			paid-in			in excess of			comprehensive
	Shares		Amount		Shares			Amount		at cost			capital			net income			loss			Total			Shares		Amount		Shares			Amount		at cost			capital			net income			income			Total
Balance, December 31, 2019		6,450,000	$	159,541,000		13,488,000		$	809,000	$	(16,311,000	)	$	877,256,000		$	(503,725,000	)	$	(7,009,000	)	$	510,561,000
Net (loss) income		—		—		—			—		—			—			(2,246,000	)		—			(2,246,000	)
Balance, December 31, 2020																										6,450,000	$	159,541,000		13,530,000		$	812,000	$	(15,133,000	)	$	879,790,000		$	(522,696,000	)	$	(18,816,000	)	$	483,498,000
Net income (loss)																										—		—		—			—		—			—			1,112,000			—			1,112,000
Unrealized gain on change in fair value of cash flow hedges																										—		—		—			—		—			—			—			4,171,000			4,171,000
Share-based compensation, net																										—		—		99,000			6,000		1,172,000			(397,000	)		—			—			781,000
Common stock sales, net of issuance expenses																										—		—		—			—		—			1,000			—			—			1,000
Preferred stock dividends																										—		—		—			—		—			—			(2,688,000	)		—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests																										—		—		—			—		—			—			(899,000	)		—			(899,000	)
Reallocation adjustment of limited partners' interest																										—		—		—			—		—			19,000			—			—			19,000
Balance, March 31, 2021																										6,450,000		159,541,000		13,629,000			818,000		(13,961,000	)		879,413,000			(525,171,000	)		(14,645,000	)		485,995,000
Net income																										—		—		—			—		—			—			51,055,000			—			51,055,000
Unrealized (loss) on change in fair value of cash flow hedges		—		—		—			—		—			—			—			(14,924,000	)		(14,924,000	)		—		—		—			—		—			—			—			1,009,000			1,009,000
Share-based compensation, net		—		—		46,000			3,000		1,006,000			(143,000	)		—			—			866,000			—		—		(1,000	)		—		50,000			1,039,000			—			—			1,089,000
Common stock sales, net of issuance expenses		—		—		—			—		—			5,000			—			—			5,000			—		—		—			—		—			1,000			—			—			1,000
Preferred stock dividends		—		—		—			—		—			—			(2,688,000	)		—			(2,688,000	)		—		—		—			—		—			—			(2,688,000	)		—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		—		—			—		—			—			(4,468,000	)		—			(4,468,000	)		—		—		—			—		—			—			(1,188,000	)		—			(1,188,000	)
Redemption of OP units																										—		—		—			—		—			—			—			—			—
Reallocation adjustment of limited partners' interest		—		—		—			—		—			5,000			—			—			5,000			—		—		—			—		—			38,000			—			—			38,000
Balance, March 31, 2020		6,450,000		159,541,000		13,534,000			812,000		(15,305,000	)		877,123,000			(513,127,000	)		(21,933,000	)		487,111,000
Net (loss) income		—		—		—			—		—			—			(6,097,000	)		—			(6,097,000	)
Unrealized (loss) on change in fair value of cash flow hedges		—		—		—			—		—			—			—			(585,000	)		(585,000	)
Share-based compensation, net		—		—		—			—		57,000			973,000			—			—			1,030,000
Common stock sales, net of issuance expenses		—		—		—			—		—			4,000			—			—			4,000
Common stock repurchases		—		—		—			—		—			—			—			—			—
Preferred stock dividends		—		—		—			—		—			—			(2,688,000	)		—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		—		—			—		—			—			(893,000	)		—			(893,000	)
Reallocation adjustment of limited partners' interest		—		—		—			—		—			(2,000	)		—			—			(2,000	)
Balance, June 30, 2020		6,450,000		159,541,000		13,534,000			812,000		(15,248,000	)		878,098,000			(522,805,000	)		(22,518,000	)		477,880,000
Net income		—		—		—			—		—			—			1,267,000			—			1,267,000
Unrealized gain on change in fair value of cash flow hedges		—		—		—			—		—			—			—			1,471,000			1,471,000
Share-based compensation, net		—		—		(3,000	)		—		57,000			751,000			—			—			808,000
Common stock sales, net of issuance expenses		—		—		1,000			—		—			2,000			—			—			2,000
Common stock repurchases		—		—		—			—		—			—			—			—			—
Preferred stock dividends		—		—		—			—		—			—			(2,688,000	)		—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		—		—			—		—			—			(893,000	)		—			(893,000	)
Redemption of OP Units		—		—		—			—		—			—			—			—			—
Reallocation adjustment of limited partners' interest		—		—		—			—		—			(5,000	)		—			—			(5,000	)
Balance, September 30, 2020		6,450,000	$	159,541,000		13,532,000		$	812,000	$	(15,191,000	)	$	878,846,000		$	(525,119,000	)	$	(21,047,000	)	$	477,842,000
Balance, June 30, 2021																										6,450,000	$	159,541,000		13,628,000		$	818,000	$	(13,911,000	)	$	880,491,000		$	(477,992,000	)	$	(13,636,000	)	$	535,311,000

	Noncontrolling Interests											Noncontrolling Interests
	Minority		Limited									Minority		Limited
	interest in		partners'									interest in		partners'
	consolidated		interest in									consolidated		interest in
	joint		Operating						Total			joint		Operating						Total
	ventures		Partnership			Total			Equity			ventures		Partnership			Total			Equity
Balance, December 31, 2019	$	435,000	$	3,079,000		$	3,514,000		$	514,075,000
Net loss		176,000		(28,000	)		148,000			(2,098,000	)
Balance, December 31, 2020												$	1,053,000	$	2,907,000		$	3,960,000		$	487,458,000
Net income (loss)													150,000		(9,000	)		141,000			1,253,000
Unrealized gain on change in fair value of cash flow hedges													—		26,000			26,000			4,197,000
Share-based compensation, net													—		—			—			781,000
Common stock sales, net of issuance expenses													—		—			—			1,000
Preferred stock dividends													—		—			—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests													—		(5,000	)		(5,000	)		(904,000	)
Reallocation adjustment of limited partners' interest													—		(19,000	)		(19,000	)		—
Balance, March 31, 2021													1,203,000		2,900,000			4,103,000			490,098,000
Net (loss) income													122,000		287,000			409,000			51,464,000
Unrealized (loss) on change in fair value of cash flow hedges		—		(90,000	)		(90,000	)		(15,014,000	)		—		10,000			10,000			1,019,000
Share-based compensation, net		—		—			—			866,000			—		—			—			1,089,000
Common stock sales, net of issuance expenses		—		—			—			5,000			—		—			—			1,000
Preferred stock dividends		—		—			—			(2,688,000	)		—		—			—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		(27,000	)		(27,000	)		(4,495,000	)		—		(5,000	)		(5,000	)		(1,193,000	)
Redemption of OP units													—		(8,000	)		(8,000	)		(8,000	)
Reallocation adjustment of limited partners' interest		—		(5,000	)		(5,000	)		—			—		(38,000	)		(38,000	)		—
Balance, March 31, 2020		611,000		2,929,000			3,540,000			490,651,000
Net income		140,000		(52,000	)		88,000			(6,009,000	)
Unrealized (loss) on change in fair value of cash flow hedges		—		(3,000	)		(3,000	)		(588,000	)
Share-based compensation, net		—		—			—			1,030,000
Common stock sales, net of issuance expenses		—		—			—			4,000
Common stock repurchases		—		—			—			—
Preferred stock dividends		—		—			—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		(5,000	)		(5,000	)		(898,000	)
Reallocation adjustment of limited partners' interest		—		2,000			2,000			—
Balance, June 30, 2020		751,000		2,871,000			3,622,000			481,502,000
Net income		144,000		(7,000	)		137,000			1,404,000
Unrealized gain on change in fair value of cash flow hedges		—		9,000			9,000			1,480,000
Share-based compensation, net		—		—			—			808,000
Common stock sales, net of issuance expenses		—		—			—			2,000
Common stock repurchases		—		—			—			—
Preferred stock dividends		—		—			—			(2,688,000	)
Distributions to common shareholders/noncontrolling interests		—		(5,000	)		(5,000	)		(898,000	)
Redemption of OP Units		—		—			—			—
Reallocation adjustment of limited partners' interest		—		5,000			5,000			—
Balance, September 30, 2020	$	895,000	$	2,873,000		$	3,768,000		$	481,610,000
Balance, June 30, 2021												$	1,325,000	$	3,146,000		$	4,471,000		$	539,782,000

	Nine months ended September 30,						Six months ended June 30,
		2021			2020			2022			2021
OPERATING ACTIVITIES
Net loss	$	(28,166,000	)	$	(6,703,000	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Net (loss) income							$	(43,839,000	)	$	52,717,000
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Gain on sales		(49,904,000	)		(679,000	)		—			(49,904,000	)
Impairment charges		80,887,000			7,607,000
Impairment charges (reversal)								16,829,000			(1,849,000	)
Straight-line rents and expenses, net		(285,000	)		1,304,000			(4,000	)		(305,000	)
Provision for doubtful accounts		606,000			1,010,000			840,000			502,000
Depreciation and amortization		30,978,000			38,208,000			15,066,000			21,468,000
Amortization of intangible lease liabilities, net		(807,000	)		(1,065,000	)		(506,000	)		(539,000	)
Expense relating to share-based compensation, net		2,509,000			2,753,000			823,000			1,926,000
Amortization of deferred financing costs		1,203,000			969,000			440,000			748,000
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Rents and other receivables		(862,000	)		(3,381,000	)		(1,006,000	)		(591,000	)
Prepaid expenses and other		(4,771,000	)		(12,280,000	)		3,659,000			1,276,000
Accounts payable and accrued liabilities		931,000			(1,574,000	)		23,780,000			(645,000	)
Net cash provided by operating activities		32,319,000			26,169,000			16,082,000			24,804,000

INVESTING ACTIVITIES
Expenditures for real estate improvements		(19,612,000	)		(29,815,000	)		(16,932,000	)		(13,762,000	)
Net proceeds from sales of real estate		104,497,000			5,013,000			31,866,000			104,497,000
Contributions to unconsolidated joint venture		(3,193,000	)		—			(155,000	)		(2,481,000	)
Net cash provided by (used in) investing activities		81,692,000			(24,802,000	)
Net cash provided by investing activities								14,779,000			88,254,000

FINANCING ACTIVITIES
Repayments under revolving credit facility		(188,000,000	)		(83,100,000	)		(29,000,000	)		(183,000,000	)
Advances under revolving credit facility		79,000,000			98,000,000			4,000,000			20,000,000
Repayment of term note		(100,000,000	)		—			—			(50,000,000	)
Termination payment related to interest rate swap		(503,000	)		—			—			(503,000	)
Mortgage proceeds		114,000,000			—			—			114,000,000
Mortgage repayments		(825,000	)		(797,000	)		(571,000	)		(548,000	)
Payments of debt financing costs		(3,261,000	)		(305,000	)		(6,000	)		(1,620,000	)
Noncontrolling interests:
Distributions to limited partners		(15,000	)		(37,000	)		(5,000	)		(10,000	)
Acquisition of joint venture minority interest share								(1,000,000	)		—
Redemption of OP units		(8,000	)		—			—			(8,000	)
Common stock sales less issuance expenses, net		4,000			11,000			—			2,000
Preferred stock dividends		(8,064,000	)		(8,064,000	)		(5,376,000	)		(5,376,000	)
Distributions to common shareholders		(3,015,000	)		(6,254,000	)		(900,000	)		(1,799,000	)
Net cash used in financing activities		(110,687,000	)		(546,000	)		(32,858,000	)		(108,862,000	)

Net increase in cash, cash equivalents and restricted cash		3,324,000			821,000
Net (decrease) increase in cash, cash equivalents and restricted cash								(1,997,000	)		4,196,000
Cash, cash equivalents and restricted cash at beginning of period		1,637,000			2,747,000			3,269,000			1,637,000
Cash, cash equivalents and restricted cash at end of period	$	4,961,000		$	3,568,000		$	1,272,000		$	5,833,000

Reconciliation to consolidated balance sheets:
Cash and cash equivalents	$	4,731,000		$	3,568,000		$	1,042,000		$	5,603,000
Restricted cash		230,000			—			230,000			230,000
Cash, cash equivalents and restricted cash	$	4,961,000		$	3,568,000		$	1,272,000		$	5,833,000

Cedar Realty Trust, Inc. (the “Company”) is a real estate investment trust (“REIT”) that focuses primarily on ownership, operation and redevelopment of grocery-anchored shopping centers in high-density urban markets from Washington, D.C. to Boston. At ~~September~~June 30, ~~2021,~~2022, the Company owned and managed a portfolio of 5317 operating properties (excluding properties “held for sale”).

Cedar Realty Trust Partnership, L.P. (the “Operating Partnership”) 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. At ~~September~~June 30, ~~2021,~~2022, the Company owned a ~~99.4%~~99.6% general and limited partnership interest in, and was the sole general partner of, the Operating Partnership. The limited partners’ interest in the Operating Partnership ~~(0.6%~~(0.4% at ~~September~~June 30, ~~2021)~~2022) is represented by partnership units in the Operating Partnership (“OP Units”). The carrying amount of such interest is adjusted at the end of each reporting period to an amount equal to the limited partners’ ownership percentage of the Operating Partnership’s net equity. The ~~81,000~~49,000 OP Units outstanding at ~~September~~June 30, ~~2021~~2022 are economically equivalent to shares of the Company’s common stock. The holders of OP Units have the right to exchange their OP Units for the same number of shares of the Company’s common stock or, at the Company’s option, for cash. Unless specifically noted otherwise, all references to OP Units exclude limited partnership units held by the Company.

As used herein, the “Company” refers to Cedar Realty Trust, Inc. and its subsidiaries on a consolidated basis, including the Operating Partnership or, where the context so requires, Cedar Realty Trust, Inc. only.

On March 2, 2022, the Company announced that following its previously announced review of strategic alternatives, it had entered into definitive agreements for the sale of the Company and its assets in a series of related all-cash transactions. Specifically, on March 2, 2022, the Company and certain of its subsidiaries, DRA Fund X-B LLC and KPR Centers LLC (together with their respective designees, the “Grocery-Anchored Purchasers”) entered into an asset purchase and sale agreement (the “Asset Purchase Agreement”), pursuant to which the Grocery-Anchored Purchasers will acquire a portfolio of 33 grocery-anchored shopping centers from the Company for a cash purchase price of $840.0 million (the “Grocery-Anchored Portfolio Sale”). The Asset Purchase Agreement provides that to the extent specified redevelopment assets (Riverview Plaza, East River Park and Senator Square, which have been classified as “real estate held for sale” as of March 31, 2022) of the Company are not sold by the Company to third parties prior to the closing of the Grocery-Anchored Portfolio Sale, these assets will be acquired by the Grocery-Anchored Purchasers for an additional cash purchase price of up to $80.5 million. In addition, on March 2, 2022, the Company entered into an agreement and plan of merger (the “Merger Agreement”) with Wheeler Real Estate Investment Trust, Inc. (“Wheeler”) and certain of its affiliates pursuant to which, following closing of the Grocery-Anchored Portfolio Sale, Wheeler will acquire the balance of the Company’s shopping center assets by way of an all-cash merger transaction that values the remaining portfolio at $291.3 million. Following completion of the transactions contemplated by the Merger Agreement, the Company will survive as a wholly-owned subsidiary of Wheeler. The Company’s currently outstanding 7.25% Series B Preferred Stock and 6.50% Series C Preferred Stock will remain outstanding as shares of preferred stock in the surviving company following the transactions and are expected to remain listed on the New York Stock Exchange.

The transactions contemplated by the Asset Purchase Agreement and the Merger Agreement are collectively referred to as the “Transactions”. The Transactions were unanimously approved by the Company’s Board of Directors (the “Board”) and were approved by the Company’s common stockholders at a special meeting of stockholders held on May 27, 2022, and are estimated to generate total net proceeds, after all transaction expenses, of approximately $29.00 per share in cash, which will be distributed to shareholders upon completion of the Merger. The Merger is expected to close in August 2022, subject to satisfaction of customary closing conditions.

On July 7, 2022, the Company and certain of its subsidiaries completed the Grocery-Anchored Portfolio Sale and East River Park and Senator Square sales for total gross proceeds of approximately $879 million, including the assumed debt. There were no material relationships among the Company, the Grocery-Anchored Purchasers, or any of their respective affiliates. In connection with the transactions discussed above, the Company incurred transaction costs of $34.2 million for the six months ended June 30, 2022, included in the accompanying consolidated statement of operations, of which $23.6 million relates to future employee severance payments.

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by U.S. Generally Accepted Accounting Principles (“GAAP”) for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, all adjustments necessary for fair presentation (including normal recurring accruals) have been included. The financial statements are prepared on the accrual basis in accordance with GAAP, which requires management to make estimates and assumptions that affect the disclosure of contingent assets and liabilities, the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the periods covered by the financial statements. Actual results could differ from these estimates. The unaudited consolidated financial statements in this Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

The unaudited consolidated financial statements include the accounts and operations of the Company, the Operating Partnership, its subsidiaries, and certain joint venture partnerships in which it participates. The Company consolidates all variable interest entities for which it is the primary beneficiary. Certain prior year amounts in the consolidated financial statements and notes thereto have been reclassified to conform to current year presentation.

	Nine months ended September 30,					Six months ended June 30,
	2021			2020		2022		2021
Supplemental disclosure of cash activities:
Cash paid for interest	$	15,467,000		$	17,621,000	$	9,419,000	$	10,547,000
Supplemental disclosure of non-cash activities:
Capitalization of interest and financing costs		2,449,000			1,865,000		1,035,000		1,555,000
Buildings and improvements included in accounts payable and accrued liabilities		(654,000	)		—		3,764,000		1,224,000
Recognition of right-of-use assets and related lease liabilities		—			703,000

In April 2020, the FASB issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of a novel strain of coronavirus (“COVID-19”). Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated with the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under ASC 842. Instead, an entity that elects not to evaluate whether a concession directly related to COVID-19 is a modification can then elect whether to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract). Both lessees and lessors may make this election. The Company is evaluating its election on a disaggregated basis, with such election applied consistently to leases with similar characteristics and similar circumstances.

During the three and ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, the Company provided lease concessions to certain tenants in response to the impact of COVID-19, in the form of rent deferrals. The Company has made an election to account for such lease concessions consistent with how those concessions would be accounted for under ASC 842 if enforceable rights and obligations for those concessions had already existed in the leases. This election is available for concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in ~~the Company’s~~our rights as lessor, including concessions that result in the total payments required by the modified lease being substantially the same as or less than total payments required by the original lease.

Substantially all of the Company’s concessions to date provide for a deferral of payments with no substantive changes to the consideration in the original lease. These deferrals affect the timing, but not the amount, of the lease payments. The Company is accounting for these deferrals as if no changes to the lease were made. Under this accounting, the Company increases its receivables

as tenant payments accrue and continues to recognize rental income. Through ~~September~~June 30, ~~2021,~~2022, the Company has entered into lease modifications that deferred approximately ~~$3.5~~$3.5 million, of which ~~$2.4~~$2.4 million relates to deferrals that the Company continued to recognize rental income. In addition, through ~~September~~June 30, ~~2021,~~2022, the Company has entered into agreements that waived approximately $2.4 million of rent. As of June 30, 2022, less than $0.1 million of the $3.5 million deferred lease modifications remain outstanding.

On September 9, 2021, the Company announced that it is exploring, among other alternatives, a potential sale or merger involving the entire Company, and alternatively the potential sale of its core grocery-anchored shopping center portfolio and its mixed-use redevelopment projects. As part of this dual-track strategic alternatives process, the Company has determined that certain of the Company’s operating properties would be sold significantly prior to the end of their previously estimated hold periods. Therefore, the Company recorded $82.7 million in impairment charges.

On May 5, 2021, the Company formed a joint venture with Goldman Sachs Urban Investment Group and Asland Capital Partners (the “Joint Venture”) for the construction of an approximately 258,000 square foot six-story commercial building in Washington, D.C. consisting of approximately 240,000 square feet of office space which is 100% leased to the Washington, D.C., Department of General Services (“DGS”) for its headquarters and approximately 18,000 square feet of street-level retail. The term of the lease with DGS is for 20 years and 10 months, to commence upon substantial completion and delivery to the DGS. This building is planned as the first phase of Northeast Heights, a redevelopment of 2 existing shopping centers, East River Park and Senator Square, into a mixed-use residential, office and retail property. Further, the Joint Venture has secured construction financing from JP Morgan not to exceed $105 million. The construction loan initially bears interest at LIBOR plus 200 basis points and has an initial term of three years with two, one-year extension options subject to customary conditions. The Company has a 10% interest in the joint venture and is a co-general partner along with Asland Capital Partners. The Company has contributed approximately ~~$3.2~~$4.8 million of capital to the Joint Venture as of ~~September~~June 30, ~~2021.~~2022. The Company ~~has~~ sold approximately $8.0 million of development costs to the Joint Venture as part of ~~September 30,~~its formation on May 5, 2021.

approximately $13.5 million. The lease provides for a free rent period of 10 months immediately following rent commencement. The Lease also provides DGS with a tenant credit of approximately $6.8 million to be applied, at DGS’s election, against either annual rent or any other tenant payment obligations including tenant improvement costs, in excess of the tenant improvement allowance. Pursuant to the lease, the Joint Venture will contribute up to $155 per rentable square foot toward the cost of tenant improvements, to be amortized over 240 months. In addition, the lease provides that the Joint Venture will contribute $9.38 per rentable square foot in additional tenant improvement allowance between the 10th and 12th lease years, upon DGS’s timely election. The obligations of DGS under the Lease are subject to annual budget appropriation.

On June 28, 2022, the Company acquired the 40% minority ownership percentage in the Crossroads joint venture for $1.0 million. Crossroads was included in the Grocery-Anchored Portfolio Sale that occurred on July 7, 2022.

The following table shows the property ~~dispositions~~disposition during the ~~nine~~six months ended ~~September~~June 30, ~~2021:~~2022:

The ~~gain on sales and the reversal of impairments are~~impairment is included in operating (loss) income in the accompanying consolidated statement of operations.

As of ~~September~~June 30, ~~2021,~~2022, Carll’s Corner, located in Bridgeton, New Jersey, ~~has~~the 33 grocery-anchored shopping centers and 2 redevelopment properties have been classified as “real estate held for sale” on the accompanying consolidated balance sheet.

On July 7, 2022, the Company and certain of its subsidiaries completed the Grocery-Anchored Portfolio Sale and East River Park and Senator Square sales for total gross proceeds of approximately $879 million, including the assumed debt. The Grocery-Anchored Portfolio Sale represents a strategic shift and will have a material effect on the Company’s operations and financial results, and, therefore, the Company ~~when applicable, conducts~~has determined that it is deemed a ~~continuing review~~discontinued operation. Accordingly, the portfolio of 33 grocery-anchored shopping centers have been classified as held for sale and the ~~values~~results of their operations have been classified as discontinued operations for all ~~properties “held~~periods presented herein. With the reclass to held for ~~sale” based on final sales prices~~sale, there were additional impairments of $16.1 million recorded during the second quarter of 2022. The following is a summary of income from discontinued operations:

	Three months ended June 30,						Six months ended June 30,
	2022			2021			2022			2021
REVENUES
Rental revenues	$	21,546,000		$	21,277,000		$	43,677,000		$	43,771,000
Other		102,000			99,000			157,000			221,000
Total revenues		21,648,000			21,376,000			43,834,000			43,992,000
EXPENSES
Operating, maintenance and management		5,108,000			4,454,000			10,441,000			9,916,000
Real estate and other property-related taxes		3,278,000			3,229,000			6,534,000			6,491,000
General and administrative		91,000			(223,000	)		151,000			(99,000	)
Depreciation and amortization		3,964,000			7,281,000			9,726,000			15,031,000
Total expenses		12,441,000			14,741,000			26,852,000			31,339,000


OPERATING INCOME		9,207,000			6,635,000			16,982,000			12,653,000

NON-OPERATING INCOME AND EXPENSES
Interest expense		(1,509,000	)		(1,182,000	)		(3,036,000	)		(1,709,000	)
Total non-operating income and expenses		(1,509,000	)		(1,182,000	)		(3,036,000	)		(1,709,000	)

INCOME FROM DISCONTINUED OPERATIONS		7,698,000			5,453,000			13,946,000			10,944,000

Impairment charges		(16,119,000	)		-			(16,630,000	)		-
Gain on sales		-			-			-			1,047,000

TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS	$	(8,421,000	)	$	5,453,000		$	(2,684,000	)	$	11,991,000

Net cash provided by operations from discontinued operations was $25.4 million and ~~sales contracts entered into. Impairment charges/reversals, if applicable, are based on a comparison of~~$25.3 million for the ~~carrying values of~~six months ended June 30, 2022 and 2021, respectively. Net cash used in investing activities from discontinued operations was $16.0 million and $9.7 million for the properties with either (1) actual sales prices less costs to sell for properties sold, or contract amounts for properties in the process of being sold, (2) estimated sales prices, less costs to sell, based on discounted cash flow or income capitalization analyses, if no contract amounts are being negotiated (see Note 4 - “Fair Value Measurements”), or (3) with respect to land parcels, estimated sales prices, less costs to sell, based on comparable sales completed in the selected market areas. Prior to the Company’s determination to dispose of properties, which are subsequently reclassified to “held for sale”, the Company performed recoverability analyses based on the estimated undiscounted cash flows that were expected to result from the real estate investments’ usesix months ended June 30, 2022 and eventual disposal. The projected undiscounted cash flows of each property reflects that the carrying value of each real estate investment would be recovered. However, as a result of the properties’ meeting the “held for sale” criteria, such properties were written down to the lower of their carrying value and estimated fair value less costs to sell, if applicable.2021, respectively.

The carrying amounts of cash and cash equivalents, restricted cash, rents and other receivables, certain other assets, accounts payable and accrued liabilities, and variable-rate debt approximate their fair value due to their terms and/or short-term nature. The fair value of the Company’s investments and liabilities related to ~~share-based~~deferred compensation were determined to be Level 1 within the valuation hierarchy, and were based on independent values provided by financial institutions.

The fair value of the Company’s fixed rate mortgage loan was estimated using available market information and discounted cash flow analyses based on borrowing rates the Company believes it could obtain with a similar term and ~~maturity.~~maturities. As of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, the fair value of the Company’s fixed rate mortgage ~~loans~~loan payable, which ~~were~~was determined to be Level 3 within the valuation hierarchy, was ~~$162.5~~$146.4 million and ~~$47.0~~$159.0 million, respectively; the carrying value of such loan was ~~$157.0~~$156.4 million and ~~$45.4~~$156.8 million, respectively. As of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, the aggregate fair values of the Company’s unsecured revolving credit facility and term loans approximated the carrying values. In addition, the fair values of the Company’s

~~the Company’s unsecured revolving credit facility and term loans approximated their carrying values. In addition, the fair value of the Company’s~~ mortgage note receivable and finance lease obligation, which were determined to be Level 3 within the valuation hierarchy, approximated their carrying values as of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

The valuations of the ~~assets and~~ liabilities for the Company’s interest rate swaps, which are measured on a recurring basis, were determined to be Level 2 within the valuation hierarchy, and were based on independent values provided by financial institutions. Such valuations were determined using widely accepted valuation techniques, including discounted cash flow analyses, on the expected cash flows of each derivative. The analyses reflect the contractual terms of the swaps, including the period to maturity, and ~~observable~~user-observable market-based inputs, including interest rate curves (“significant other observable inputs”). The fair value calculation also includes an amount for risk of non-performance using “significant unobservable inputs” such as estimates of current credit spreads to evaluate the likelihood of default. The Company has concluded that, as of ~~September~~June 30, ~~2021,~~2022, the fair value associated with the “significant unobservable inputs” relating to the Company’s risk of non-performance was insignificant to the overall fair value of the interest rate swap agreements and, as a result, that the relevant inputs for purposes of calculating the fair value of the interest rate swap agreements, in their entirety, were based upon “significant other observable inputs”.

Nonfinancial assets and liabilities measured at fair value in the consolidated financial statements consist of ~~real estate held for use and~~ real estate held for sale, which, if applicable, are measured on a nonrecurring basis, and have been determined to be (1) Level 2 within the valuation hierarchy, where applicable, based on the respective contracts of sale, adjusted for closing costs and expenses, or (2) Level 3 within the valuation hierarchy, where applicable, based on estimated sales prices, adjusted for closing costs and expenses, determined by discounted cash flow analyses, income capitalization analyses or a sales comparison approach if no contracts had been concluded. The discounted cash flow and income capitalization analyses include all estimated cash inflows and outflows over a specific holding ~~period.~~period and, where applicable, any estimated debt premiums. These cash flows were composed of unobservable inputs which included forecasted rental revenues and expenses based upon existing in-place leases, market conditions and expectations for growth. Capitalization rates and discount rates utilized in these analyses were based upon observable rates that the Company believed to be within a reasonable range of current market rates for the respective properties. The sales comparison approach is utilized for certain land values and includes comparable sales that were completed in the selected market areas. The comparable sales utilized in these analyses were based upon observable per acre rates that the Company believes to be within a reasonable range of current market rates for the respective properties.

The following tables show the hierarchy for those assets ~~and liabilities~~ measured at fair value on a recurring basis as of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively:

		September 30, 2021									June 30, 2022
Description		Level 1		Level 2		Level 3		Total			Level 1		Level 2		Level 3		Total
Investments related to deferred
compensation liabilities (a)		$	906,000	$	—	$	—	$	906,000		$	698,000	$	—	$	—	$	698,000
Interest rate swaps assets (a)											$	—	$	3,176,000	$	—	$	3,176,000
Deferred compensation liabilities (b)		$	924,000	$	—	$	—	$	924,000		$	713,000	$	—	$	—	$	713,000
Interest rate swaps liability (b)		$	—	$	11,830,000	$	—	$	11,830,000		$	—	$	20,000	$	—	$	20,000


		December 31, 2020									December 31, 2021
Description		Level 1		Level 2		Level 3		Total			Level 1		Level 2		Level 3		Total
Investments related to deferred
compensation liabilities (a)		$	948,000	$	—	$	—	$	948,000		$	955,000	$	—	$	—	$	955,000
Deferred compensation liabilities (b)		$	952,000	$	—	$	—	$	952,000		$	982,000	$	—	$	—	$	982,000
Interest rate swaps liability (b)		$	—	$	18,927,000	$	—	$	18,927,000		$	—	$	8,232,000	$	—	$	8,232,000

(a) Included in other assets and deferred charges, net, in the accompanying consolidated balance sheets.	(a) Included in other assets and deferred charges, net, in the accompanying consolidated balance sheets.									(a) Included in other assets and deferred charges, net, in the accompanying consolidated balance sheets.
(b) Included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets.	(b) Included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets.									(b) Included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets.

In connection with the dual-track strategic alternatives process being pursued by the Company, it was determined that certain of the Company’s operating properties would be sold significantly prior to the end of their previously estimated hold periods. As of ~~September~~June 30, ~~2021, the Company tested the recoverability of~~2022, real estate held for ~~use and, as a result~~sale on the consolidated balance sheet consisted of NaN retail properties, totaling $719.3 million, which were determined to be Level 2 assets under the hierarchy, for which the carrying ~~amount of the assets not being deemed recoverable and exceeding their~~value was below its fair ~~value as measured on an asset by asset basis, recorded $82.3 million in~~value.

impairment charges. These charges are included in Impairment charges in the consolidated statement of operations. Such assets have an aggregate fair value of $247.4 million as of September 30, 2021. The fair value of the assets was determined to be Level 3 under the hierarchy and was measured at fair value on a nonrecurring basis using a direct capitalization approach, consisting of capitalization rates ranging from 6.0% to 8.8%, with a weighted average of 6.9%.

As of September 30, 2021, real estate held for sale in the consolidated balance sheet consisted of 1 retail property, totaling $1.9 million, which was determined to be Level 3 assets under the hierarchy, and was measured at fair value less cost to sell on a nonrecurring basis using a direct capitalization approach, consisting of a capitalization rate of 9.1%. As of September 30, 2021, the Company recorded an impairment of $0.4 million, which is included in Impairment charges in the consolidated statement of operations.

Debt and finance lease obligations are composed of the following at ~~September~~June 30, ~~2021:~~2022:

		September 30, 2021					June 30, 2022
					Contractual					Contractual
	Maturity	Balance			interest rates	Maturity	Balance			interest rates
Description	dates	outstanding			weighted-average	dates	outstanding			weighted-average
Fixed-rate mortgage
Fixed-rate mortgage and finance lease obligation- held for sale
Franklin Village	Jun 2026	$	44,843,000		3.9%	Jun 2026	$	44,018,000		3.9%
Shops at Suffolk Downs (a)	Jun 2031		15,600,000		3.5%	Jun 2031		15,600,000		3.5%
Trexlertown Plaza (a)	Jun 2031		36,100,000		3.5%	Jun 2031		36,100,000		3.5%
The Point (a)	Jun 2031		29,700,000		3.5%	Jun 2031		29,700,000		3.5%
Christina Crossing (a)	Jun 2031		17,000,000		3.5%	Jun 2031		17,000,000		3.5%
Lawndale Plaza (a)	Jun 2031		15,600,000		3.5%	Jun 2031		15,600,000		3.5%
Senator Square finance lease obligation	Sep 2050		5,608,000		5.3%	Sep 2050		5,578,000		5.3%
			164,451,000		3.6%			163,596,000		3.6%
Unsecured credit facilities:
Variable-rate:
Revolving credit facility (b)	Aug 2024		66,000,000		1.6%	Aug 2024		41,000,000		3.1%
Fixed-rate (c):
Term loan	Apr 2023		100,000,000		3.3%	Apr 2023		100,000,000		3.3%
Term loan	Sep 2024		75,000,000		3.8%	Sep 2024		75,000,000		3.8%
Term loan	Jul 2025		75,000,000		4.7%	Jul 2025		75,000,000		4.7%
Term loan	Aug 2026		50,000,000		3.3%	Aug 2026		50,000,000		3.3%
			530,451,000		3.5%			504,596,000		3.7%
Unamortized issuance costs			(3,278,000	)				(2,848,000	)
		$	527,173,000				$	501,748,000

On August 30, 2021, the Company amended its existing $300 million unsecured credit facility and $50 million term loan. After the amendment, the new unsecured revolving credit facility is $185 million with an expiration in August 2024. The new unsecured revolving credit facility may be extended, at the Company’s option for 2 additional one-year periods, subject to customary conditions. Interest on the borrowings under the new unsecured revolving credit facility component can range from LIBOR plus 135 bps to 195 bps (150 bps at ~~September~~June 30, ~~2021)~~2022), based on the Company’s leverage ratio. The Company extended its $50 million term loan four years with an expiration in August 2026.

On August 4, 2020, the Company amended its then existing $300 million unsecured credit facility and term loans. After such amendments, the Company’s financial ratios and borrowing base are all computed using the trailing four quarters as opposed to the current quarter annualized and interest rate swaps that are a hedge of existing debt are now excluded from the definition of debt.

The Company’s unsecured credit facility and term loans contain financial covenants including, but not limited to, maximum debt leverage, maximum secured debt, minimum fixed charge coverage, and minimum net worth. In addition, the facility contains restrictions including, but not limited to, limits on indebtedness, certain investments and distributions. The Company’s failure to comply with the covenants or the occurrence of an event of default under the facilities could result in the acceleration of the related debt and exercise of other lender remedies. Although the credit facility is unsecured, borrowing availability is based on unencumbered property adjusted net operating income for the trailing twelve months, as defined in the agreements. As of ~~September~~June 30, ~~2021,~~2022, the Company had ~~$66.0~~$41.0 million outstanding ~~and $117.9 million available for additional borrowings~~ under its revolving credit facility. The unsecured credit facility and ~~was~~term notes were paid off on July 11, 2022, in ~~compliance~~connection with ~~all financial covenants.~~the Grocery-Anchored Portfolio Sale.

On May 5, 2021, the Company closed a non-recourse mortgage for $114.0 million. The mortgage matures June 1, 2031, bears interest at a fixed-rate of 3.49% and requires payment of interest only for the first five years followed by payments of principal and interest based on thirty-year amortization for the remainder of the term. The loan is secured by five shopping centers consisting of Lawndale Plaza, The Shops at Suffolk Downs, Christina Crossing, Trexlertown Plaza, and The Point. These properties had no pre-existing debt and the proceeds from this new loan were used to reduce amounts outstanding under the Company’s revolving credit facility. The mortgage loans payable were assumed by the Grocery-Anchored Purchasers.

The fair values of the interest rate swaps applicable to the unsecured term loans discussed above are included in accounts payable and accrued liabilities on the consolidated balance sheet at ~~September~~June 30, ~~2021.~~2022. Charges and/or credits relating to the changes in the fair value of the interest rate swaps are made to accumulated other comprehensive income (loss), limited partners’ interest, or operations (included in interest expense), as applicable. Over time, the unrealized gains and losses recorded in accumulated other comprehensive ~~income (loss)~~loss will be reclassified into earnings as an increase or reduction to interest expense in the same periods in which the hedged interest payments affect earnings. ~~The Company estimates that approximately $6.1 million of accumulated other comprehensive income (loss) will be reclassified as a decrease to earnings within the next twelve months.~~

The following is a summary of the derivative financial instruments held by the Company at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020, respectively:~~2021:

September 30, 2021

June 30, 2022

Designation/

Fair

Maturity

Balance sheet

Cash flow

Derivative

Count

value

dates

location

Qualifying

Interest rate swaps

3,176,000

2023-2025

Other assets and deferred charges, net

Qualifying

Interest rate swaps

20,000

2023-2025

Accounts payable and accrued liabilities

December 31, 2021

Designation/

Fair

Maturity

Balance sheet

Fair

Maturity

Balance sheet

Cash flow

Derivative

Count

value

dates

location

Derivative

Count

value

dates

location

Qualifying

Interest rate swaps

11,830,000

2022-2025

Accounts payable and accrued liabilities

Interest rate swaps

8,232,000

2023-2025

Accounts payable and accrued liabilities

December 31, 2020

Designation/

Fair

Maturity

Balance sheet

Cash flow

Derivative

Count

value

dates

location

Qualifying

Interest rate swaps

18,927,000

2021-2025

Accounts payable and accrued liabilities

The notional values of the interest rate swaps held by the Company at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 were $300.0 million ~~and $425.0~~in each period. The interest rate swaps were terminated as part of the Grocery-Anchored Portfolio Sale for a $3.4 million ~~respectively.~~

The following presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations and the consolidated statements of equity for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively:

		Gain (loss) recognized in other													Gain (loss) recognized in other
		comprehensive (loss) income													comprehensive (loss) income
		(effective portion)													(effective portion)
Designation/		Three months ended September 30,						Nine months ended September 30,							Three months ended June 30,						Six months ended June 30,
Cash flow	Derivative	2021			2020			2021			2020			Derivative	2022			2021			2022			2021
Qualifying	Interest rate swaps	$	113,000		$	(552,000	)	$	1,869,000		$	(18,141,000	)	Interest rate swaps	$	2,156,000		$	(637,000	)	$	9,132,000		$	1,756,000

		(Loss) gain recognized in other													(Loss) recognized in other
		comprehensive (loss) income													comprehensive (loss) income
		reclassified into earnings (effective portion)													reclassified into earnings (effective portion)
		Three months ended September 30,						Nine months ended September 30,							Three months ended June 30,						Six months ended June 30,
	Classification	2021			2020			2021			2020			Classification	2022			2021			2022			2021
	Continuing Operations	$	(1,482,000	)	$	(2,032,000	)	$	(4,942,000	)	$	(4,019,000	)	Continuing Operations	$	(958,000	)	$	(1,656,000	)	$	(2,320,000	)	$	(3,460,000	)

As of ~~September~~June 30, ~~2021,~~2022 the Company believes it has no significant risk associated with non-performance of the financial institutions which are the counterparties to its derivative contracts.

The Company is a party to certain legal actions arising in the normal course of business. Management does not expect there to be adverse consequences from these actions that would be material to the Company’s consolidated financial statements.

The Company is the lessee under several ground ~~leases~~lease and its executive office lease agreement. As of ~~September~~June 30, ~~2021,~~2022, the Company’s weighted average remaining lease term is approximately ~~29.4~~49.3 years and the weighted average discount rate used to calculate the Company’s lease liability is approximately ~~5.7%~~8.6%. Rent expense under the Company’s ground lease and executive office lease agreements was approximately $0.1 million and $0.3 million for the three months ended June 30, 2022 and 2021, respectively. Rent expense under the Company’s ground lease and executive office lease agreements was approximately $0.2 million and ~~$0.4~~$0.7 million for the ~~three~~six months ended ~~September~~June 30, 2022 and 2021, ~~and 2020,~~ respectively. Rent expense under the Company’s ground lease and executive office lease agreements was approximately $0.9 million and $1.3 million for the nine months ended September 30, 2021 and 2020, respectively.

~~During the first quarter of 2020, COVID-19 began spreading globally, with the outbreak being classified as a pandemic by the World Health Organization on March 11, 2020~~. The Company currently faces significant risks and uncertainties related to the adverse effect of the COVID-19 pandemic, which has created significant economic uncertainty and volatility. Certain tenants have announced temporary closures of their stores and have requested rent deferrals or forgiveness during this pandemic. COVID-19 could have a material and adverse effect on the Company’s financial condition, results of operations and cash flow which could result in (1) the Company’s tenants being unable to fully meet their obligations and to seek modification of their obligations, resulting in increases in uncollectible rents and a reduction in rental income, (2) difficulties in the Company’s future compliance with financial covenants in regards to its unsecured credit facilities, and (3) the recognition of impairments charges of the Company’s real estate.

As a result of COVID-19, the Company has received numerous rent relief requests, most often in the form of rent deferrals. The Company has evaluated, and continues to evaluate, each tenant rent relief request on an individual basis, considering a number of factors. ~~During the quarters ended September 30, 2021 and~~Through June 30, ~~2021, the Company collected 97% of~~ ~~contractual base rents and monthly tenant reimbursements, respectively. Through September 30, 2021,~~2022, the Company deferred approximately $3.5 million and waived approximately $2.4 million of rental income, respectively. ~~As of September 30, 2021,~~To date, the weighted average payback period for the remaining deferred rent receivable is approximately 10 months, beginning at various times from July 2020 through June 2021.

As described in Note 1, on March 2, 2022, the Company entered into definitive agreements for the Transactions, which contemplate sale of the Company and all of its assets in a series of related all-cash transactions. On April 5, 2022, a purported stockholder of the Company filed a complaint against the Company and the Board in the United States District Court for the Eastern District of New York, entitled Stein v. Cedar Realty Trust, Inc. et. al., Civil Action No. 22-cv-1944. On April 6, 2022, another purported stockholder of the Company filed a complaint against the Company and the Board in the United States District Court for the Eastern District of New York, entitled Wang v. Cedar Realty Trust, Inc. et. al., Civil Action No. 22-cv-1975. On April 18, 2022, another purported stockholder of the Company filed a complaint against the Company and the Board in the United States District Court for the Eastern District of New York, entitled Whitfield v. Cedar Realty Trust, Inc. et. al., Civil Action No. 22-cv-02204. Also on April 18, 2022, a purported stockholder filed a complaint against the Company and the Board in the United States District Court for the Eastern District of Pennsylvania, entitled Waterman v. Cedar Realty Trust, Inc. et. al., Civil Action No. 22-cv-01489. On April 22, 2022, a purported stockholder filed a complaint against the Company and the Board in the United States District Court for the Eastern District of Pennsylvania, entitled Thornburgh v. Cedar Realty Trust, Inc. et. al., Civil Action No. 22-cv-02304. In each action, the complaint alleges violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) in connection with the proposed Transactions. The complaints generally allege that the preliminary proxy statement on Schedule 14A filed by the Company with the SEC on April 5, 2022 omits material information regarding financial projections, the financial analysis conducted by JLL Securities in connection with its fairness opinion, conflicts of interest on behalf of JLL Securities and BofA Securities, and the terms of BofA Securities’ engagement. The complaints seek, among other things, an injunction preventing the consummation of the Transactions, or, in the event the Transactions are consummated, to recover damages resulting from defendants’ alleged violations of the Exchange Act.

On April 8, 2022, several purported holders of the Company’s outstanding preferred stock filed a putative class action complaint against the Company, the Board, and Wheeler in Montgomery County Circuit Court, Maryland entitled Sydney, et al. v. Cedar Realty Trust, Inc., et al., (Case No. C-15-CV-22-00152). The complaint alleges on behalf of a putative class of holders of the Company’s preferred stock, among other things, against the Company and the Board, claims for breach of contract with respect to the articles supplementary governing the terms of the Company’s preferred stock, breach of fiduciary duty, and tortious interference and aiding and abetting breach of fiduciary duty against Wheeler. The complaint seeks, among other things, a declaration that holders of the Company’s preferred stock are entitled to a liquidation preference as set forth in the articles supplementary governing the terms of the Company’s preferred stock, compensatory damages, and an injunction enjoining the merger with Wheeler, and an injunction enjoining the distribution to the Company’s common shareholders of the proceeds of any of the Transactions pending a determination of the merits of plaintiffs’ claims.

of contract with respect to the articles supplementary governing the terms of the Company’s preferred stock and breach of fiduciary duty, and, against Wheeler, tortious interference and aiding and abetting breach of fiduciary duty. The Sydney amended complaint seeks, among other things, (i) a declaration that holders of the Company’s preferred stock are entitled to exercise either their liquidation rights or conversion rights as set forth in the articles supplementary, (ii) compensatory damages, (iii) an injunction enjoining the distribution to the Company’s common shareholders of the proceeds of the Grocery-Anchored Portfolio Sale, and (iv) an injunction enjoining the Merger. On May 6, 2022, the plaintiffs in Sydney filed a motion for a preliminary injunction to temporarily enjoin, until the final resolution of the litigation (i) the distribution of the gross proceeds from the Grocery-Anchored Portfolio Sale to the common stockholders, (ii) the closing of the Merger, and (iii) the imposition of a constructive trust over the gross proceeds from both the Grocery Anchored Portfolio Sale and the Merger. Also on May, 6, 2022, a purported holder of the Company’s outstanding preferred stock filed a putative class action complaint against the Company and the Board in the United States District Court for the District of Maryland, entitled Kim v. Cedar Realty Trust, Inc., et al., Civil Action No. 22-cv-01103. The complaint alleges on behalf of a putative class of holders of the Company’s preferred stock, among other things, claims for declaratory and injunctive relief with respect to the articles supplementary governing the terms of the Company’s preferred stock and breach of fiduciary duty. On May 11, 2022, the Company, the Board of Directors of the Company and Wheeler removed the Sydney action to the United States District Court for the District of Maryland, Case No. 8:22-cv-01142-GLR. On May 16, 2022, the court ordered that a hearing on the Sydney plaintiffs’ motion for preliminary injunction will be held on June 22, 2022. On June 2, 2022, the plaintiffs in Kim filed a motion for a preliminary injunction (i) to require that the Company provide preferred shareholders with a vote to approve the Grocery-Anchored Portfolio Sale and the Merger, and (ii) requiring Cedar disclose to preferred shareholders that the Grocery-Anchored Portfolio Sale and Merger entitled the preferred stockholders to exercise their change of control conversion right. The court agreed to consolidate the Kim plaintiffs’ motion for preliminary injunction with the Sydney plaintiffs’ motion for preliminary injunction, and to hear arguments on both motions at the hearing on June 22, 2022.

On June 23, 2022, following a hearing on both the Sydney and Kim motions for preliminary injunction, the court issued an order denying both motions for preliminary injunction, holding that the plaintiffs in both cases were unlikely to succeed on the merits of any of their contractual or fiduciary duty claims, and that plaintiffs had not established that they would suffer irreparable harm if the injunction was denied. By order dated July 11, 2022, the Court consolidated this case with another class action brought by a preferred stockholder and set August 24, 2022 for the plaintiffs in both cases to file a consolidated amended complaint.

The Company is authorized to issue up to 12,500,000 shares of preferred stock. The following tables summarize details about the Company’s preferred stock:

~~On November 25, 2020, the Company effected a~~ ~~1-for-6.6~~ reverse stock split of the issued and outstanding shares of common stock. Each 6.6 shares of the Company’s issued and outstanding common stock were combined into one share of the Company’s common stock. The number of authorized shares and the par value of the common stock were not changed. In addition, the Company amended the Limited Partnership Agreement of its Operating Partnership to effect a corresponding reverse split of the partnership interests of the Operating Partnership. In accordance with GAAP, all shares of common stock, restricted stock units, OP Units and per share/unit information that are presented in this Form 10-Q were adjusted to reflect the reverse split on a retroactive basis for all periods presented.

The following table provides a summary of dividends declared and paid per share:

	Three months ended September 30,				Nine months ended September 30,				Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020		2022		2021		2022		2021
Common stock	$	0.066	$	0.066	$	0.198	$	0.462	$	-	$	0.066	$	0.066	$	0.132
7.25% Series B Preferred Stock	$	0.453	$	0.453	$	1.359	$	1.359	$	0.453	$	0.453	$	0.906	$	0.906
6.50% Series C Preferred Stock	$	0.406	$	0.406	$	1.219	$	1.219	$	0.406	$	0.406	$	0.813	$	0.813

On ~~October 12, 2021,~~July 19, 2022, the Company’s Board of Directors ~~declared a dividend of $0.066 per share with respect to its common stock. At the same time, the Board~~ declared dividends of $0.453125 and $0.406250 per share with respect to the Company’s Series B Preferred Stock and Series C Preferred Stock, respectively. The distributions are payable on ~~November~~August 22, ~~2021~~2022 to shareholders of record on ~~November~~August 12, ~~2021.~~2022.

Rental revenues for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively, comprise the following:

	Three months ended September 30,					Nine months ended September 30,					Three months ended June 30,					Six months ended June 30,
	2021		2020			2021		2020			2022			2021		2022			2021
Base rents	$	22,657,000	$	23,233,000		$	70,249,000	$	71,776,000		$	5,878,000		$	7,686,000	$	11,796,000		$	15,493,000
Expense recoveries		7,385,000		6,812,000			23,185,000		21,695,000			2,201,000			2,476,000		4,143,000			5,094,000
Percentage rent		78,000		823,000			1,004,000		1,152,000			146,000			122,000		269,000			363,000
Straight-line rents		7,000		(277,000	)		366,000		(1,222,000	)		(19,000	)		159,000		(87,000	)		171,000
Amortization of intangible lease liabilities, net		268,000		299,000			807,000		1,065,000			161,000			160,000		322,000			324,000
Total rents	$	30,395,000	$	30,890,000		$	95,611,000	$	94,466,000		$	8,367,000		$	10,603,000	$	16,443,000		$	21,445,000

The Company reviews the collectability of charges under its tenant operating leases on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in

which the tenant operates and economic conditions in the area where the property is located. During ~~2021~~2022 and ~~2020,~~2021, the Company’s assessment has specifically included the impact of the COVID-19 pandemic, which represents a material risk to collectability. In the event that collectability with respect to any tenant changes the Company recognizes an adjustment to rental income. The Company’s review of collectability of charges under its operating leases includes any accrued rental revenues related to the straight-line method of reporting rental revenue. ~~During 2021 and 2020, the~~The Company identified various tenants where collection was no longer considered ~~probable,~~probable. The determination to record revenue on a cash basis and ~~therefore,~~write off any outstanding straight-line receivable from these various tenants reduced net income $0.0 million and $0.0 million for the three and six months ended June 30, 2022, respectively. In addition, during the three and ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, respectively, $~~0.3~~$0.4 million and ~~$1.3~~$0.8 million of billed charges, consisting of rent and tenant reimbursements, were ~~unpaid. Based~~unpaid, and based on the Company’s determination to record revenue on a cash basis for these tenants, these amounts were not recorded as ~~revenue.~~revenue for the three and six months ended June 30, 2022.

The following tables set forth certain share-based compensation information for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively:

	Three months ended September 30,						Nine months ended September 30,						Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020			2022			2021			2022			2021
Expense relating to share/unit grants	$	629,000		$	822,000		$	2,650,000		$	2,930,000		$	293,000		$	1,092,000		$	877,000		$	2,021,000
Amounts capitalized		(46,000	)		(55,000	)		(141,000	)		(177,000	)		(12,000	)		(46,000	)		(54,000	)		(95,000	)
Total charged to operations	$	583,000		$	767,000		$	2,509,000		$	2,753,000		$	281,000		$	1,046,000		$	823,000		$	1,926,000

				Weighted average												Weighted average
	Shares			grant date value									Shares			grant date value
Unvested shares/units, December 31, 2020		642,000		$	25.86
Unvested shares/units, December 31, 2021														492,000		$	23.47
Restricted share grants		144,000			11.68									7,000			26.31
Vested during period		(239,000	)		22.71									(33,000	)		24.34
Forfeitures/cancellations		(40,000	)		17.20									(82,000	)		28.29
Unvested shares/units, March 31, 2021		507,000		$	24.00
Unvested shares/units, June 30, 2022														384,000		$	22.42

During the six months ended June 30, 2022 there were 7,000 restricted shares issued, with a weighted average grant date fair value of $26.31 per share.

On June 15, 2018, the Company’s President and CEO was granted a market performance-based equity award of 227,272 restricted stock units (“RSUs”) and 227,272 dividend equivalent rights (“DERs”) of the Company. Each RSU represents a contingent right to receive one common share if certain market performance criteria are achieved. Each DER accrues and will be deemed to be reinvested into the Company’s common stock for which payment will only be made for the portion of the market performance-based equity award that are earned and vest. During the three years ending June 15, 2021 (the “Interim Performance Period”), a maximum of 113,636 shares were earned. Any portion of the market performance-based equity award that was not earned as of the end of the Interim Performance Period will be carried forward for calculation for the five years ending June 15, 2023 (the “Full Performance Period”). The percentage of the market performance-based equity award to be earned will be determined based on the Company’s annual return on an investment in the Company’s common stock (“TSR”) over the Interim Performance Period and/or over the Full Performance Period as follows: if average annual TSR (1) is below 4%, the percentage of grant earned would be 0%, (2) equals 4%, the percentage of grant earned would be 33.3%, (3) equals 6.5%, the percentage of grant earned would be 66.7%, and (4) equals 10% or above, the percentage of grant earned would be 100%. Linear interpolation shall be applied to determine the percentage of the market performance-based equity award that is earned where the average annual TSR over the performance period falls between the percentages set forth above. Based on market performance for the Interim Performance Period, it was determined the Company’s President and CEO earned 113,636 shares. Accordingly, on July 20, 2021, the Company issued 113,636 common shares to the CEO and paid him $0.3 million for the related DERs.

The DERs will accrue and will be deemed to be reinvested into the Company’s common stock and payment with respect to the dividend equivalent rights will be deferred until the end of the Interim Performance Period, or the Full Performance Period, as the case may be, to coincide with the vesting, if any, of the market performance-based equity award. Payment will only be made for the portion of the market performance-based equity award that is earned and vests.

Basic earnings per share (“EPS”) is calculated by dividing net income (loss) attributable to the Company’s common shareholders by the weighted average number of common shares outstanding for the period including participating securities (restricted shares that have non-forfeitable rights to receive dividends issued pursuant to the Company’s share-based compensation program are considered participating securities). Unvested restricted shares that are participating securities are not allocated net losses and/or any excess of dividends declared over net income, as such amounts are allocated entirely to the common shareholders. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2021 and 2020,~~2022, the Company had ~~0.4~~0.3 million of weighted average unvested restricted shares outstanding that were participating securities. For the three and six months ended June 30, 2021, the Company had 0.5 million ~~respectively,~~ of weighted average unvested restricted shares outstanding that were participating securities. The following table provides a reconciliation of the numerator and denominator of the EPS calculations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020, respectively:~~2021:

	Three months ended September 30,						Nine months ended September 30,						Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020			2022			2021			2022			2021
Numerator
Net (loss) income	$	(80,883,000	)	$	1,404,000		$	(28,166,000	)	$	(6,703,000	)
Net (loss) income from continuing operations													$	(34,342,000	)	$	46,011,000		$	(41,155,000	)	$	40,726,000
Preferred stock dividends		(2,688,000	)		(2,688,000	)		(8,064,000	)		(8,064,000	)		(2,688,000	)		(2,688,000	)		(5,376,000	)		(5,376,000	)
Net loss (income) attributable to noncontrolling interests		367,000			(137,000	)		(183,000	)		(373,000	)		143,000			(377,000	)		185,000			(480,000	)
Net earnings allocated to unvested shares		(29,000	)		(28,000	)		(92,000	)		(210,000	)		(18,000	)		(1,878,000	)		(41,000	)		(1,850,000	)
Net loss attributable to vested common shares	$	(83,233,000	)	$	(1,449,000	)	$	(36,505,000	)	$	(15,350,000	)
(Loss) income from continuing operations, net of noncontrolling interest, attributable to vested common shares														(36,905,000	)		41,068,000			(46,387,000	)		33,020,000
Income from discontinued operations, net of noncontrolling interests, attributable to vested common shares														(8,388,000	)		5,421,000			(2,673,000	)		11,921,000
Net (loss) income attributable to vested common shares													$	(45,293,000	)	$	46,489,000		$	(49,060,000	)	$	44,941,000
Denominator
Weighted average number of vested common shares outstanding, basic and diluted		13,252,000			13,110,000			13,191,000			13,101,000			13,288,000			13,197,000			13,287,000			13,171,000
Net (loss) income per common share attributable to common shareholders (basic and diluted):
Continuing operations													$	(2.78	)	$	3.11		$	(3.49	)	$	2.51
Discontinued operations														(0.63	)		0.41			(0.20	)		0.90
													$	(3.41	)	$	3.52		$	(3.69	)	$	3.41
Net loss per common share attributable to common shareholders, basic and diluted	$	(6.28	)	$	(0.11	)	$	(2.77	)	$	(1.17	)

Fully-diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into shares of common stock. For the three and ~~nine~~six months ended ~~September 30, 2021 and~~ June 30, ~~2020,~~2022 and 2021, 0 ~~RSUs~~restricted stock units (“RSU’s”) would have been issuable under the Company’s President and CEO market performance-based equity award had the measurement period ended on ~~September~~June 30, 2022, and 2021, ~~and September 30, 2020,~~respectively, and therefore this market performance-based equity award had no impact in ~~the~~ calculation of diluted EPS. Net loss (income) attributable to noncontrolling interests of the Operating Partnership has been excluded from the numerator and the related OP Units have been excluded from the denominator for the purpose of calculating diluted EPS as there would have been no dilutive effect had such amounts been included. The weighted average number of OP Units outstanding were 65,000 and 73,000 for the three and six months ended June 30, 2022, respectively, and 81,000 for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021 and September 30, 2020.~~2021.

In determining subsequent events, management reviewed all activity from ~~October~~July 1, ~~2021~~2022 through the date of filing this Quarterly Report on Form 10-Q. Other than those events disclosed in this report, there were no other events or transactions that occurred that would require adjustment to, or disclosure in, the Company’s consolidated financial statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the Company’s consolidated financial statements and related notes thereto included elsewhere in this report.

The Company is a fully-integrated real estate investment trust that focuses primarily on ownership, operation and redevelopment of grocery-anchored shopping centers in high-density urban markets from Washington, D.C. to Boston. At ~~September~~June 30, ~~2021,~~2022, the Company owned and managed a portfolio of 5317 operating properties (excluding properties “held for sale”) totaling ~~7.6~~2.6 million square feet of gross leasable area (“GLA”). The portfolio was ~~89.8%~~86.1% leased and ~~87.7%~~86.3% occupied at ~~September~~June 30, ~~2021.~~2022.

The Company derives substantially all of its revenues from rents and operating expense reimbursements received pursuant to leases. The Company’s operating results therefore depend on the ability of its tenants to make the payments required by the terms of their leases. The Company focuses its investment activities on grocery-anchored shopping centers. The Company believes that, because of the need of consumers to purchase food and other staple goods and services generally available at such centers, its type of “necessities-based” properties should provide relatively stable revenue flows even during difficult economic times.

On March 2, 2022, the Company announced that following its previously announced review of strategic alternatives, it had entered into definitive agreements for the sale of the Company and its assets in a series of related all-cash transactions. Specifically, on March 2, 2022, the Company and certain of its subsidiaries, DRA Fund X-B LLC and KPR Centers LLC (together with their respective designees, the “Grocery-Anchored Purchasers”) entered into an asset purchase and sale agreement (the “Asset Purchase Agreement”), pursuant to which the Grocery-Anchored Purchasers will acquire a portfolio of 33 grocery-anchored shopping centers from the Company for a cash purchase price of $840.0 million (the “Grocery-Anchored Portfolio Sale”). The Asset Purchase Agreement provides that to the extent specified redevelopment assets (Riverview Plaza, East River Park and Senator Square, which have been classified as “real estate held for sale” as of March 31, 2022) of the Company are not sold by the Company to third parties prior to the closing of the Grocery-Anchored Portfolio Sale, these assets will be acquired by the Grocery-Anchored Purchasers for an additional cash purchase price of up to $80.5 million. In addition, on March 2, 2022, the Company entered into an agreement and plan of merger (the “Merger Agreement”) with Wheeler Real Estate Investment Trust, Inc. (“Wheeler”) and certain of its affiliates pursuant to which, following closing of the Grocery-Anchored Portfolio Sale, Wheeler will acquire the balance of the Company’s shopping center assets by way of an all-cash merger transaction that values the remaining portfolio at $291.3 million (the “Merger”). Following completion of the transactions contemplated by the Merger Agreement, the Company will survive as a wholly-owned subsidiary of Wheeler. The Company’s currently outstanding 7.25% Series B Preferred Stock and 6.50% Series C Preferred Stock will remain outstanding as shares of preferred stock in the surviving company following the transactions and are expected to remain listed on the New York Stock Exchange.

On July 7, 2022, the Company and certain of its subsidiaries completed the Grocery-Anchored Portfolio Sale and East River Park and Senator Square sales for total gross proceeds of approximately $879 million, including the assumed debt. There were no material relationships among the Company, the Grocery-Anchored Purchasers, or any of their respective affiliates. In connection with the transactions discussed above, the Company incurred transaction costs of $34.2 million for the six months ended June 30, 2022, included in the accompanying consolidated statement of operations, of which $23.6 million relates to future employee severance payments.

As a result of COVID-19, the Company has received numerous rent relief requests, most often in the form of rent deferrals. The Company has entered into lease modifications that deferred approximately $3.5 million and waived approximately $2.4 million of

rental income through ~~September~~June 30, ~~2021,~~2022, respectively. ~~As of September 30, 2021,~~To date, the weighted average payback period ~~for remaining~~of deferred rent ~~receivable~~ is approximately 10 months, beginning at various times from July 2020 through June 2021. ~~The Company~~ ~~has collected approximately 97% and 97% of~~ ~~contractual base rents and monthly tenant reimbursements for the quarters ended September 30, 2021 and June 30, 2021, respectively.~~

On ~~September 9,~~October 14, 2021, the Company ~~announced that it is exploring, among other alternatives, a potential sale or merger involving~~acquired the ~~entire~~60% minority ownership percentage in the San Souci Plaza joint venture. On June 28, 2022, the Company ~~and alternatively~~acquired the ~~potential sale~~40% minority ownership percentage in the Crossroads joint venture.

As of ~~its core~~June 30, 2022, Carll’s Corner, located in Bridgeton, New Jersey, the 33 grocery-anchored shopping ~~center portfolio~~centers and ~~its mixed-use~~two redevelopment ~~projects. As part of this dual-track strategic alternatives process, the Company has measured its~~properties have been classified as “real estate held for ~~use properties at quarter-end, at~~sale” on the lower of fair value or carrying value and determined that certain of the Company’s operating properties would be sold significantly prior to the end of their previously estimated hold periods. Therefore, the Company recorded $82.7 millionaccompanying consolidated balance sheet.

On May 5, 2021, the Company formed a joint venture with Goldman Sachs Urban Investment Group and Asland Capital Partners (the “Joint Venture”) for the construction of an approximately 258,000 square foot six-story commercial building in Washington, D.C. consisting of approximately 240,000 square feet of office space which is 100% leased to the Washington, D.C., Department of General Services (“DGS”) for its headquarters and approximately 18,000 square feet of street-level retail. The term of the lease with DGS is for 20 years and 10 months, to commence upon substantial completion and delivery to the DGS. This building is planned as the first phase of Northeast Heights, a redevelopment of two existing shopping centers, East River Park and Senator Square, into a mixed-use residential, office and retail property. Further, the Joint Venture has secured construction financing from JP Morgan not to exceed $105 million. The construction loan initially bears interest at LIBOR plus 200 basis points and has an initial term of three years with two, one-year extension options subject to customary conditions. The Company has a 10% interest in the joint venture and is a co-general partner along with Asland Capital Partners. The Company has contributed approximately ~~$3.2~~$4.8 million of capital to the Joint Venture as of ~~September~~June 30, ~~2021.~~2022. The Company has sold approximately $8.0 million of development costs to the Joint Venture as part of ~~September 30,~~its formation on May 5, 2021.

The Joint Venture currently estimates that the space will be delivered during the end of the fourth quarter 2022. Upon completion of the building, DGS will be obligated to pay initial annual net rent of approximately $5.4 million per year, subject to a 2.5% annual escalator on each anniversary of rent commencement, plus certain operating costs, property taxes and amortization of tenant improvements together totaling approximately an additional $8.1 million per year, for an aggregate total annual rent of approximately $13.5 million. The lease provides for a free rent period of 10 months immediately following rent commencement. The lease also provides DGS with a tenant credit of approximately $6.8 million to be applied, at DGS’s election, against either annual rent or any other tenant payment obligations including tenant improvement costs, in excess of the tenant improvement allowance. Pursuant

to the lease, the Joint Venture will contribute up to $155 per rentable square foot toward the cost of tenant improvements, to be amortized over 240 months. In addition, the lease provides that the Joint Venture will contribute $9.38 per rentable square foot in additional tenant improvement allowance between the 10th and 12th lease years, upon DGS’s timely election. The obligations of DGS under the lease are subject to annual budget appropriation.

~~As of September 30, 2021, Carll’s Corner, located in Bridgeton, New Jersey, has been classified as “real estate held for sale” on the accompanying consolidated balance sheet.~~

~~The following table shows the property dispositions during the nine months ended September 30, 2021:~~

~~The gain on sales and the reversal of impairments are included in operating income in the accompanying consolidated statement of operations.~~

On August 30, 2021, the Company amended its existing $300 million unsecured credit facility and $50 million term loan. After the amendment, the new unsecured revolving credit facility is $185 million with an expiration in August 2024. The new unsecured revolving credit facility may be extended, at the Company’s option for two additional one-year periods, subject to customary conditions. Interest on the borrowings under the new unsecured revolving credit facility component can range from LIBOR plus 135 bps to 195 bps (150 bps at ~~September~~June 30, ~~2021)~~2022), based on the Company’s leverage ratio. The Company extended its $50 million term loan four years with an expiration in August 2026.

~~On August 4, 2020, the Company amended its then existing $300 million~~ The unsecured credit facility and term ~~loans. After such amendments,~~notes were paid off on July 11, 2022, in connection with the Company’s financial ratios and borrowing base are all computed using trailing four quarters as opposed to the current quarter annualized and interest rate swaps that are a hedge of existing debt are now excluded from the definition of debt.

On October 27, 2020, the Company utilized its revolving credit facility to repay the $75.0 million term loan which was set to mature in February 2021. The revolving credit facility matures in September 2021, and may be extended, at the Company’s option, for an additional one-year period, subject to customary conditions.Grocery-Anchored Portfolio Sale.

~~On November 25, 2020,~~The mortgage loans payable were assumed by the Company effected a 1-for-6.6 reverse stock split of the issued and outstanding shares of common stock. Each 6.6 shares of the Company’s issued and outstanding common stock were combined into one share of the Company’s common stock. The number of authorized shares and the par value of the common stock were not changed. In addition, the Company amended the Limited Partnership Agreement of our Operating Partnership to effect a corresponding reverse split of the partnership interests of the Operating Partnership. In accordance with GAAP, all shares of common stock, restricted stock units, OP Units and per share/unit information that are presented in this Form 10-Q were adjusted to reflect the reverse split on a retroactive basis for all periods presented.

The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition and the allowance for doubtful accounts receivable, real estate investments and purchase accounting allocations related thereto, asset ~~impairments,~~impairment, and derivatives used to hedge interest-rate risks. Management’s estimates are based both on information that is currently available and on various other assumptions management believes to be reasonable under the circumstances. Actual results could differ from those estimates and those estimates could be different under varying assumptions or conditions.

The Company believes there have been no material changes to the items disclosed as its critical accounting policies under Item 7.7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. See Note 2 – “Summary of Significant Accounting Policies” for recently-adopted accounting pronouncements.

Comparison of three months ended ~~September~~June 30, ~~2021~~2022 to ~~September~~June 30, ~~2020~~2021

							Change										Change
	2021			2020			Dollars			Percent	2022			2021			Dollars			Percent
Revenues	$	30,562,000		$	31,175,000		$	(613,000	)	-2.0%	$	8,503,000		$	10,844,000		$	(2,341,000	)	-21.6%
Property operating expenses		(10,367,000	)		(10,832,000	)		465,000		-4.3%		(3,545,000	)		(3,664,000	)		119,000		-3.2%
Property operating income		20,195,000			20,343,000			(148,000	)			4,958,000			7,180,000			(2,222,000	)
General and administrative		(4,229,000	)		(3,925,000	)		(304,000	)	7.7%		(2,861,000	)		(5,096,000	)		2,235,000		-43.9%
Depreciation and amortization		(9,510,000	)		(10,035,000	)		525,000		-5.2%		(2,850,000	)		(2,976,000	)		126,000		-4.2%
Gain on sales		—			679,000			(679,000	)	n/a		—			48,857,000			(48,857,000	)	n/a
Impairment (charges) reversal												(2,000	)		1,849,000			(1,851,000	)	n/a
Transaction costs												(30,457,000	)		—			(30,457,000	)	n/a
Interest expense												(3,130,000	)		(3,803,000	)		673,000		-17.7%
(Loss) income from continuing operations												(34,342,000	)		46,011,000			(80,353,000	)
Discontinued operations:
Income from operations												7,698,000			5,453,000			2,245,000		41.2%
Impairment charges		(82,736,000	)		—			(82,736,000	)	n/a		(16,119,000	)		—			(16,119,000	)	n/a
Interest expense		(4,603,000	)		(5,658,000	)		1,055,000		-18.6%
Net (loss) income		(80,883,000	)		1,404,000			(82,287,000	)			(42,763,000	)		51,464,000			(94,227,000	)
Net loss (income) attributable to noncontrolling interests		367,000			(137,000	)		504,000				176,000			(409,000	)		585,000		n/a
Net (loss) income attributable to Cedar Realty Trust, Inc.	$	(80,516,000	)	$	1,267,000		$	(81,783,000	)		$	(42,587,000	)	$	51,055,000		$	(93,642,000	)

Revenues were lower as a result of (1) a decrease of ~~$2.7~~$2.1 million in rental revenues and expense recoveries attributable to properties that were sold or held for sale in 2022 and 2021 ~~and 2020, which was~~not deemed to be discontinued operations, partially ~~offset~~off-set by (2) an increase of ~~$2.1~~$0.3 million in rental revenues and expense recoveries attributable to same center properties.

Property operating expenses were lower as a result of (1) a decrease of ~~$0.6~~$0.4 million in property operating expenses attributable to properties ~~that were~~ sold or held for sale induring 2022 and 2021 ~~and 2020, which is~~not deemed to be discontinued operations, partially ~~offset~~off-set by (2) an increase of ~~$0.2~~$0.3 million in property operating expenses attributable to same center properties.

General and administrative costs were ~~higher~~lower primarily as a result of ~~an increase~~(1) a decrease of ~~$0.3~~$1.6 million in payroll related costs predominantly related to ~~payroll~~the previously announced dual-track strategic alternatives process and ~~payroll related expenses.~~(2) a decrease in legal and professional fees of $0.6 million.

Depreciation and amortization expenses were lower as a result of ~~(1)~~ a decrease of ~~$0.1 million attributable to same center properties and (2) a decrease of $0.4~~$0.2 million attributable to properties that were sold or held for sale in 2022 and 2021 ~~and 2020.~~not deemed to be discontinued operations.

Gain on sales in ~~2020~~2021 relates to the sale of ~~an outparcel at Oakland Mills,~~the Camp Hill Shopping Center, located in ~~Columbia, Maryland.~~Camp Hill, Pennsylvania.

Impairment charges in 2022 relates to Riverview Plaza, located in Philadelphia, Pennsylvania. Impairment reversal in 2021 relates to The Commons Plaza, located in Dubois, Pennsylvania.

Transaction costs in 2022 relate to costs incurred related to the ~~Company’s~~previously announced dual-track strategic alternatives process.

Interest expense was lower as a result of (1) a decrease in the overall weighted average principal balance which resulted in a decrease in interest expense of ~~$1.3~~$1.0 million, (2) ~~an increase~~a decrease in ~~capitalized interest~~amortization expense of ~~$0.3~~deferred financing costs $0.2 million, ~~which is~~ partially off-set by (3) an increase in the overall weighted average interest rate which resulted in an increase in interest expense of ~~$0.4~~$0.1 million and (4) ~~an increase~~a decrease in ~~the amortization~~capitalized interest of ~~financing costs of $0.1~~$0.4 million.

Discontinued operations for 2022 and 2021 include the results of operations and impairments for properties treated as discontinued operations.

Comparison of ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 to ~~September~~June 30, ~~2020~~2021

							Change										Change
	2021			2020			Dollars			Percent	2022			2021			Dollars			Percent
Revenues	$	96,333,000		$	102,280,000		$	(5,947,000	)	-5.8%	$	16,781,000		$	21,779,000		$	(4,998,000	)	-22.9%
Property operating expenses		(34,614,000	)		(34,161,000	)		(453,000	)	1.3%		(6,584,000	)		(7,840,000	)		1,256,000		-16.0%
Property operating income		61,719,000			68,119,000			(6,400,000	)			10,197,000			13,939,000			(3,742,000	)
General and administrative		(13,630,000	)		(12,833,000	)		(797,000	)	6.2%		(5,773,000	)		(9,500,000	)		3,727,000		-39.2%
Depreciation and amortization		(30,978,000	)		(38,208,000	)		7,230,000		-18.9%		(5,351,000	)		(6,437,000	)		1,086,000		-16.9%
Gain on sales		49,904,000			679,000			49,225,000		n/a		—			48,857,000			(48,857,000	)	n/a
Impairment (charges) reversal												(199,000	)		1,849,000			(2,048,000	)	n/a
Transaction costs												(34,192,000	)		—			(34,192,000	)	n/a
Interest expense												(5,837,000	)		(7,982,000	)		2,145,000		-26.9%
(Loss) income from continuing operations												(41,155,000	)		40,726,000			(81,881,000	)
Discontinued operations:
Income from operations												13,946,000			10,944,000			3,002,000		27.4%
Impairment charges		(80,887,000	)		(7,607,000	)		(73,280,000	)	n/a		(16,630,000	)		—			(16,630,000	)	n/a
Interest expense		(14,294,000	)		(16,853,000	)		2,559,000		-15.2%
Gain on sales												—			1,047,000			(1,047,000	)	n/a
Net (loss) income		(28,166,000	)		(6,703,000	)		(21,463,000	)			(43,839,000	)		52,717,000			(96,556,000	)
Net income attributable to noncontrolling interests		(183,000	)		(373,000	)		190,000
Net loss attributable to Cedar Realty Trust, Inc.	$	(28,349,000	)	$	(7,076,000	)	$	(21,273,000	)
Net loss (income) attributable to noncontrolling interests												196,000			(550,000	)		746,000		n/a
Net (loss) income attributable to Cedar Realty Trust, Inc.											$	(43,643,000	)	$	52,167,000		$	(95,810,000	)

Revenues were lower as a result of (1) ~~$7.1 million relating to a dark anchor tenant terminating its lease prior to the contractual expiration in 2020 at Metro Square, (2)~~ a decrease of ~~$3.6~~$4.5 million in rental revenues and expense recoveries attributable to properties that were sold or held for sale in 2022 and 2021 not deemed to be discontinued operations and ~~2020, (3)~~(2) a decrease of $0.4 ~~million in rental revenues and expense recoveries attributable to redevelopment properties, which is partially off-set by (4) an increase of $4.9~~ million in rental revenues and expense recoveries attributable to same center properties.

Property operating expenses were ~~higher~~lower as a result of ~~(1) an increase of $1.8 million in property operating expenses attributable to same center properties, which is partially off-set by (2)~~ a decrease of ~~$0.2 million in property operating expenses attributable to redevelopment properties and (3) a decrease of $1.1~~$1.3 million in property operating expenses attributable to properties sold or held for sale during 2022 and 2021 ~~and 2020.~~not deemed to be discontinued operations.

General and administrative costs were ~~higher~~lower primarily as a result of (1) ~~an increase~~a decrease of ~~$0.3 million in legal and professional fees, (2) an increase of $0.3~~$3.0 million in payroll related costs predominantly related to the previously announced dual-track strategic alternatives process and ~~payroll related expenses and (3) an increase~~(2) a decrease in legal fees of ~~$0.2 million in overhead expenses.~~$0.6 million.

Depreciation and amortization expenses were lower as a result of (1) a decrease of ~~$4.8 million attributable to same center properties, (2) a decrease of $0.5 million attributable to redevelopment properties and (3) a decrease of $1.9~~$0.7 million attributable to properties that were sold or held for sale in 2022 and 2021 not deemed to be discontinued operations and ~~2020.~~(2) a decrease of $0.3 million attributable to same center properties.

Gain on sales in 2021 relates to the sale of ~~an outparcel building at Kempsville Crossing, located in Virginia Beach, Virginia and~~the Camp Hill Shopping Center, located in Camp Hill, Pennsylvania. ~~Gain on sales in 2020 relates to the sale of an outparcel at Oakland Mills, located in Columbia, Maryland.~~

Impairment charges in 2022 relates to Riverview Plaza, located in Philadelphia, Pennsylvania. Impairment reversal in 2021 ~~relate~~relates to ~~the sale of~~ The Commons Plaza, located in Dubois, ~~Pennsylvania and~~Pennsylvania.

Transaction costs in 2022 relate to costs incurred related to the ~~Company’s~~previously announced dual-track strategic alternatives process. ~~Impairment charges in 2020 relate to Metro Square, located in Owings Mill, Maryland and The Commons, located in Dubois, Pennsylvania.~~

Interest expense was lower as a result of (1) a decrease in the overall weighted average principal balance which resulted in a decrease in interest expense of $2.5 million, (2) ~~an increase~~a decrease in ~~capitalized interest~~amortization expense of ~~$0.6~~deferred financing costs $0.4 million, ~~which is~~ partially

off-set by (3) an increase in the overall weighted average interest rate which resulted in an increase in interest expense of ~~$0.2~~$0.3 million and (4) ~~an increase~~a decrease in ~~the amortization~~capitalized interest of ~~financing costs of $0.3~~$0.5 million.

Discontinued operations for 2022 and 2021 include the results of operations, impairments and gain on sales for properties treated as discontinued operations.

Same-property net operating income (“same-property NOI”) is a widely-used non-GAAP financial measure for REITs that the Company believes, when considered with financial statements prepared in accordance with GAAP, is useful to investors as it provides an indication of the recurring cash generated by the Company’s properties by excluding certain non-cash revenues and expenses, as well as other infrequent items such as lease termination income which tends to fluctuate more than rents from year to year. Properties are included in same-property NOI if they are 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. Consistent with the capital treatment of such costs under GAAP, tenant improvements, leasing commissions and other direct leasing costs are excluded from same-property NOI.

The most directly comparable GAAP financial measure is consolidated operating income. Same-property NOI should not be considered as an alternative to consolidated operating income prepared in accordance with GAAP or as a measure of liquidity. Further, same-property NOI is a measure for which there is no standard industry definition and, as such, it is not consistently defined or reported on among the Company’s peers, and thus may not provide an adequate basis for comparison among REITs.

The following table reconciles same-property NOI to the Company’s consolidated operating income:

	For the three months ended September 30,						For the nine months ended September 30,						For the three months ended June 30,						For the six months ended June 30,
	2021			2020			2021			2020			2022			2021			2022			2021
Operating (loss) income	$	(76,280,000	)	$	7,062,000		$	(13,872,000	)	$	10,150,000		$	(31,212,000	)	$	49,814,000		$	(35,318,000	)	$	48,708,000
Add (deduct):
General and administrative		4,229,000			3,925,000			13,630,000			12,833,000			2,861,000			5,096,000			5,773,000			9,500,000
Gain on sales		—			(679,000	)		(49,904,000	)		(679,000	)		—			(48,857,000	)		—			(48,857,000	)
Impairment charges		82,736,000			—			80,887,000			7,607,000
Transaction costs														30,457,000			—			34,192,000			—
Impairment charges (reversal)														2,000			(1,849,000	)		199,000			(1,849,000	)
Depreciation and amortization		9,510,000			10,035,000			30,978,000			38,208,000			2,850,000			2,976,000			5,351,000			6,437,000
Straight-line rents		(7,000	)		277,000			(366,000	)		1,222,000			19,000			(159,000	)		87,000			(171,000	)
Amortization of intangible lease liabilities		(268,000	)		(299,000	)		(807,000	)		(1,065,000	)		(161,000	)		(160,000	)		(322,000	)		(324,000	)
Other adjustments		(46,000	)		(58,000	)		(104,000	)		(29,000	)		29,000			(36,000	)		(6,000	)		(71,000	)
NOI related to properties not defined as same-property		(2,216,000	)		(4,280,000	)		(9,419,000	)		(19,100,000	)		(233,000	)		(2,045,000	)		(733,000	)		(4,162,000	)
Same-property NOI	$	17,658,000		$	15,983,000		$	51,023,000		$	49,147,000		$	4,612,000		$	4,780,000		$	9,223,000		$	9,211,000

Number of same properties		45			45			45			45			17			17			17			17
Same-property occupancy, end of period		90.5	%		90.7	%		90.5	%		90.7	%		86.1	%		86.8	%		86.1	%		86.8	%
Same-property leased, end of period		91.4	%		92.0	%		91.4	%		92.0	%		86.3	%		86.9	%		86.3	%		86.9	%
Same-property average base rent, end of period	$	13.59		$	13.73		$	13.59		$	13.73		$	10.49		$	10.52		$	10.49		$	10.52

Same-property NOI for the comparable three and ~~nine~~six month periods decreased 3.5% and increased ~~10.5% and 3.8%~~0.1%, ~~respectively, as a result of the negative impact of the COVID-19 pandemic which reduced rental revenues for prior year same-property portfolio.~~respectively.

The following is a summary of the Company’s retail leasing activity during the ~~nine~~six months ended ~~September~~June 30, ~~2021:~~2022:

												Tenant
					New rent		Prior rent		Cash basis			improvements														Tenant
	Leases				per		per		%			per			Leases				New rent		Prior rent		Cash basis			improvements
	signed		GLA		sq.ft. ($)		sq.ft. ($)		change			sq.ft. ($)			signed		GLA		per sq.ft.		per sq.ft.		% change			per sq.ft.
Renewals		63		385,256		15.48		15.24		1.6	%		1.61			46		260,300		14.82		14.33		3.4	%		0.16
New Leases - Comparable		29		208,540		14.72		12.69		16.0	%		57.11	(a)		17		86,200		21.33		14.59		46.2	%		88.66	(a)
New Leases - Non-Comparable (b)		12		113,752		18.54	n/a		n/a				69.67	(a)		5		53,300		13.03	n/a		n/a				61.14	(a)
Total (c)		104		707,548		15.74	n/a		n/a				28.90			68		399,800		15.99	n/a		n/a				27.37

The Company funds operating expenses and other short-term liquidity requirements, including debt service, tenant improvements, leasing commissions, preferred and common dividend distributions and distributions to minority interest partners, if made, primarily from its operations. The Company may also use its revolving credit facility for these purposes. The Company expects to fund long-term liquidity requirements for property acquisitions, redevelopment costs, capital improvements, and maturing debt initially with its revolving credit facility, and ultimately through a combination of issuing and/or assuming additional debt, the sale of equity securities, the issuance of additional OP Units, and/or the sale of properties. Although the Company believes it has access to secured and unsecured financing, there can be no assurance that the Company will have access to financing for development projects, financing for additional construction projects, or proceeds from refinancing of existing debt.

Effective April 28, 2020, the average closing price of the Company’s common stock had been less than $1.00 over the prior 30-consecutive trading day period, and as a result, the Company received notice from the NYSE that the Company had until December 31, 2020 to regain compliance with the minimum share price requirement. The threat of delisting and/or a delisting of the Company’s common stock could have adverse effects, such as restricting the Company’s ability to obtain equity financing. On October 27, 2020, to regain compliance with the minimum NYSE share price requirement, the Company’s Board of Directors approved a plan to amend the Company’s articles of incorporation to effect a reverse stock split of the issued and outstanding shares of common stock.

On November 25, 2020, the Company effected a 1-for-6.6 reverse stock split of the issued and outstanding shares of common stock. Each 6.6 shares of the Company’s issued and outstanding common stock were combined into one share of the Company’s common stock. The number of authorized shares and the par value of the common stock were not changed. In addition, the Company amended the Limited Partnership Agreement of our Operating Partnership to effect a corresponding reverse split of the partnership interests of the Operating Partnership.

On August 30, 2021, the Company amended its existing $300 million unsecured credit facility and $50 million term loan. After the amendment, the new unsecured revolving credit facility is $185 million with an expiration in August 2024. The new unsecured revolving credit facility may be extended, at the Company’s option for two additional one-year periods, subject to customary conditions. Interest on the borrowings under the new unsecured revolving credit facility component can range from LIBOR plus 135 bps to 195 bps (150 bps at ~~September~~June 30, ~~2021)~~2022), based on the Company’s leverage ratio. Interest on borrowings under the unsecured credit facility is based on the Company’s leverage ratio. The Company extended its $50 million term loan four years with an expiration in August 2026.

Debt and finance lease obligations are composed of the following at ~~September~~June 30, ~~2021:~~2022:

		September 30, 2021					June 30, 2022
					Contractual					Contractual
	Maturity	Balance			interest rates	Maturity	Balance			interest rates
Description	dates	outstanding			weighted-average	dates	outstanding			weighted-average
Fixed-rate mortgage
Fixed-rate mortgage and finance lease obligation- held for sale
Franklin Village	Jun 2026	$	44,843,000		3.9%	Jun 2026	$	44,018,000		3.9%
Shops at Suffolk Downs (a)	Jun 2031		15,600,000		3.5%	Jun 2031		15,600,000		3.5%
Trexlertown Plaza (a)	Jun 2031		36,100,000		3.5%	Jun 2031		36,100,000		3.5%
The Point (a)	Jun 2031		29,700,000		3.5%	Jun 2031		29,700,000		3.5%
Christina Crossing (a)	Jun 2031		17,000,000		3.5%	Jun 2031		17,000,000		3.5%
Lawndale Plaza (a)	Jun 2031		15,600,000		3.5%	Jun 2031		15,600,000		3.5%
Senator Square finance lease obligation	Sep 2050		5,608,000		5.3%	Sep 2050		5,578,000		5.3%
			164,451,000		3.6%			163,596,000		3.6%
Unsecured credit facilities:
Variable-rate:
Revolving credit facility (b)	Aug 2024		66,000,000		1.6%	Aug 2024		41,000,000		3.1%
Fixed-rate (c):
Term loan	Apr 2023		100,000,000		3.3%	Apr 2023		100,000,000		3.3%
Term loan	Sep 2024		75,000,000		3.8%	Sep 2024		75,000,000		3.8%
Term loan	Jul 2025		75,000,000		4.7%	Jul 2025		75,000,000		4.7%
Term loan	Aug 2026		50,000,000		3.3%	Aug 2026		50,000,000		3.3%
			530,451,000		3.5%			504,596,000		3.7%
Unamortized issuance costs			(3,278,000	)				(2,848,000	)
		$	527,173,000				$	501,748,000

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

(c) 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 ~~is currently exploring secured and unsecured refinancing options with various lenders.~~ has interest rate swap agreements which convert the LIBOR rates to fixed rates. Accordingly, these term loans are presented as fixed-rate debt.

The following table details the Company’s debt and finance lease obligation maturities at ~~September~~June 30, ~~2021:~~2022:

	Mortgage Loan		Finance Lease		Revolving			Term				Mortgage Loan		Finance Lease		Revolving			Term
Year	Payable		Obligation		Credit Facility			Loans		Total		Payable		Obligation		Credit Facility			Loans		Total
2021	$	272,000	$	12,000	$	-		$	-	$	284,000
2022		1,116,000		37,000		-			-		1,153,000	$	563,000	$	19,000	$	-		$	-	$	582,000
2023		1,160,000		39,000		-			100,000,000		101,199,000		1,160,000		39,000		-			100,000,000		101,199,000
2024		1,206,000		41,000		66,000,000	(a)		75,000,000		142,247,000		1,206,000		41,000		41,000,000	(a)		75,000,000		117,247,000
2025		1,253,000		44,000		-			75,000,000		76,297,000		1,253,000		44,000		-			75,000,000		76,297,000
2026													40,922,000		48,000		-			50,000,000		90,970,000
Thereafter		153,836,000		5,435,000		-			50,000,000		209,271,000		112,914,000		5,387,000		-			-		118,301,000
	$	158,843,000	$	5,608,000	$	66,000,000		$	300,000,000	$	530,451,000	$	158,018,000	$	5,578,000	$	41,000,000		$	300,000,000	$	504,596,000

Mortgage loans payable may require the Company to deposit certain replacement and other reserves with its lenders. Such “restricted cash” is generally available only for property-level requirements for which the reserves have been established, and is not available to fund other property-level or Company-level obligations.

In order to continue qualifying as a REIT, the Company is required to distribute at least 90% of its “REIT taxable income”, as defined in the Internal Revenue Code of 1986, as amended (the “Code”). The Company paid common ~~stock~~ and preferred stock dividends during ~~2020,~~2021 and through the first quarter of 2022 and has continued to declare and pay ~~common stock and~~ preferred stock dividends ~~during 2021. While~~through the ~~Company intends to continue paying regular quarterly dividends, future~~second quarter of 2022. Future dividend declarations will continue to be at the discretion of the Board of Directors, and will depend on the cash flow and financial condition of the Company, capital requirements, annual distribution requirements under the REIT provisions of the Code, and such other factors as the Board of Directors may deem relevant. Additionally, the Board of Directors may reduce, as it did with the May 2020 common stock dividend of $0.01 per common share, or suspend payment of dividends to retain cash and reduce debt obligations and/or to fund redevelopments and other capital needs. The Company intends to continue to operate its business in a manner that will allow it to qualify as a REIT for U.S. federal income tax requirements.

	For the nine months ended September 30,						For the six months ended June 30,
	2021			2020			2022			2021
Cash flows provided by (used in):
Operating activities	$	32,319,000		$	26,169,000		$	16,082,000		$	24,804,000
Investing activities	$	81,692,000		$	(24,802,000	)	$	14,779,000		$	88,254,000
Financing activities	$	(110,687,000	)	$	(546,000	)	$	(32,858,000	)	$	(108,862,000	)

Net cash (used in) provided by operating activities, before net changes in operating assets and liabilities, was ~~$37.0~~$(10.4) million for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~$43.4~~$24.8 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020.~~2021. The decrease was primarily a result of the Company accepting a payment of $8.0 million in consideration for permitting a dark anchor tenant to terminate its lease prior to the contractual expiration in 2020, which was partially offset by (1) the negative impact of the COVID-19 pandemic in 2020, and (2) property dispositions in ~~2020.~~2021 and the accrued transaction costs related to the previously announced dual-track strategic alternatives process.

Net cash flows ~~provided by (used in)~~used in investing activities were primarily the result of the Company’s expenditures for property improvements and property disposition activities. During the ~~nine~~six months ended ~~September~~June 30, 2022 the Company incurred expenditures of $16.9 million for property improvements, $0.2 million relating to contributions to the Company’s unconsolidated joint venture and received $31.9 million in proceeds due from the sale of Riverview Plaza. During the six months ended June 30, 2021, the Company received $104.5 million in proceeds from the sale of properties, which was partially ~~off-set~~offset by ~~$19.6~~$138 million for property improvements and ~~$3.2~~$2.5 million in contributions to an unconsolidated joint venture. During the nine months ended September 30, 2020, the Company incurred expenditures of $29.8 million for property improvements, which was partially offset by $5.0 million in proceeds from the sale of properties.

During the ~~nine~~six months ended ~~September~~June 30, 2022, the Company had $6.3 million of preferred and common stock distributions, and $0.6 million of mortgage repayments, which were partially offset by net repayments of ($25.0) million under the revolving credit facility and the purchase of a minority interest in a joint venture for ($1.0) million. During the six months ended June 30, 2021, the Company had net payments of ~~$109.0~~$163.0 million under the revolving credit facility, a ~~$100.0~~$50.0 million of term ~~notes~~note pay-off, ~~$11.1~~$7.2 million of preferred ~~stock~~ and common stock distributions, ~~$0.8~~$0.5 million of mortgage repayments, and ~~$3.3~~$1.6 million of debt financing costs, $0.5 million of termination payments related to a swap liability, which were partially offset by net property specific mortgage note payables of $114.0 ~~million. During the nine months ended September 30, 2020, the Company had $14.3~~ million of preferred stock and common stock distributions, $0.8 million of mortgage repayments and $0.3 million of debt financing costs, which were partially offset by net advances of $14.9 million under the revolving credit facility..

Funds From Operations (“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 Investment Trusts (“Nareit”). Nareit generally defines FFO as net income (determined in accordance with GAAP), excluding gains (losses) from sales of real estate properties, impairment write-downs on real estate properties directly attributable to decreases in the value of depreciable real estate, 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 Funds From Operations (“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 non-capitalized acquisition pursuit 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 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 bybe comparable to such REITs.

A reconciliation of net (loss) income ~~(loss)~~ attributable to common shareholders to FFO and Operating FFO for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 is as follows:

	Three months ended September 30,						Nine months ended September 30,						Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020			2022			2021			2022			2021
Net loss attributable to common shareholders	$	(83,204,000	)	$	(1,421,000	)	$	(36,413,000	)	$	(15,140,000	)
Net (loss) income attributable to common shareholders													$	(45,275,000	)	$	48,367,000		$	(49,019,000	)	$	46,791,000
Real estate depreciation and amortization		9,497,000			10,010,000			30,917,000			38,115,000			6,809,000			10,227,000			15,066,000			21,420,000
Limited partners' interest		(492,000	)		(7,000	)		(214,000	)		(87,000	)		(176,000	)		287,000			(196,000	)		278,000
Gain on sales		—			(679,000	)		(49,904,000	)		(679,000	)		—			(48,857,000	)		—			(49,904,000	)
Impairment charges		82,736,000			—			80,887,000			7,607,000
Impairment charges (reversal)														16,121,000			(1,849,000	)		16,829,000			(1,849,000	)
Consolidated minority interests:
Share of income		125,000			144,000			397,000			460,000			—			122,000			—			272,000
Share of FFO		(78,000	)		(15,000	)		(279,000	)		(276,000	)		—			(88,000	)		—			(201,000	)
FFO applicable to diluted common shares		8,584,000			8,032,000			25,391,000			30,000,000			(22,521,000	)		8,209,000			(17,320,000	)		16,807,000
Redevelopment costs (a)		—			—			230,000			483,000
Financing costs (b)		171,000			—			215,000			—
Transaction costs (a)														30,457,000			—			34,192,000			—
Redevelopment costs (b)														-			230,000			-			230,000
Financing costs (c)														-			44,000			-			44,000
Operating FFO applicable to diluted common shares	$	8,755,000		$	8,032,000		$	25,836,000		$	30,483,000		$	7,936,000		$	8,483,000		$	16,872,000		$	17,081,000

FFO per diluted common share	$	0.62		$	0.58		$	1.84		$	2.17		$	(1.64	)	$	0.59		$	(1.25	)	$	1.21
Operating FFO per diluted common share	$	0.63		$	0.58		$	1.87		$	2.20		$	0.58		$	0.61		$	1.22		$	1.23
Weighted average number of diluted common shares (c):
Weighted average number of diluted common shares (d):
Common shares and equivalents		13,790,000			13,760,000			13,751,000			13,758,000			13,703,000			13,855,000			13,728,000			13,845,000
OP Units		81,000			81,000			81,000			81,000			65,000			81,000			73,000			81,000
		13,871,000			13,841,000			13,832,000			13,839,000			13,768,000			13,936,000			13,801,000			13,926,000

~~Inflation has been~~Prior to 2021, inflation was relatively low ~~in recent years~~ and ~~has~~did not ~~had~~have a significant detrimental impact on the Company’s results of operations. ~~There have been mixed indications of an increase in inflation in the U.S. economy.~~ If inflation rates continue to increase, substantially all of the Company’s tenant leases contain provisions designed to partially mitigate the negative impact of inflation in the near term. Such lease provisions include clauses that require tenants to reimburse the Company for inflation-sensitive costs such as real estate taxes and many of the operating expenses it incurs. Significant inflation rate increases over a prolonged period of time may have a material adverse impact on the Company’s business.

One of the principal market risks facing the Company is the risk of interest rate changes, primarily through its variable-rate revolving credit facility and term loans. The Company’s objectives with respect to interest rate risk are to limit the impact of interest rate changes on operations and cash flows, and to lower its overall borrowing costs. To achieve these objectives, the Company may borrow at either fixed rates or at variable rates and enter into derivative financial instruments, such as interest rate swaps, to mitigate its interest rate risk. The Company does not enter into derivative or interest rate transactions for speculative purposes. The Company is not directly subject to foreign currency risk.

The Company has entered into forward interest rate swap agreements which convert the LIBOR rates to fixed rates for certain unsecured term loans. At ~~September~~June 30, ~~2021,~~2022, the Company had ~~$11.8~~$0.2 million included in accounts payable and accrued liabilities and $3.2 million in other assets and deferred charges, net on the consolidated balance sheet relating to the fair value of the interest rate swaps applicable to certain unsecured term loans. The interest rate swaps were terminated as part of the Grocery-Anchored Portfolio Sale.

At ~~September~~June 30, ~~2021,~~2022, long-term debt consisted of a fixed-rate mortgage loan payable, a finance lease obligation, unsecured term loans, and the Company’s unsecured variable-rate credit facility. Excluding unamortized premiums and debt issuance costs, the average interest rate on the ~~$464.5~~$463.6 million of fixed-rate debt outstanding was 3.7%, with maturities at various dates through 2050. The average interest rate on the ~~$66.0~~$41.0 million of variable-rate debt outstanding, which consists of the unsecured revolving credit facility,

was ~~1.6%~~3.1%. With respect to the ~~$66.0~~$41.0 million of variable-rate debt, if contractual interest rates either increase or decrease by 100 bps, the Company’s interest cost would increase or decrease respectively by approximately ~~$0.7~~$0.4 million per annum.

With respect to the Company’s fixed rate mortgage notes and unsecured term loans, changes in interest rates generally do not affect the Company’s interest expense as these notes are at fixed rates for extended terms. Because the Company presently intends to hold its existing fixed-rate debt either to maturity or until the sale of the associated property, these fixed-rate notes pose an interest rate risk to the Company’s results of operations and its working capital position only upon the refinancing of that indebtedness. The Company’s possible risk is from increases in long-term interest rates that may occur as this may increase the cost of refinancing maturing fixed-rate debt. In addition, the Company may incur prepayment penalties or defeasance costs when prepaying or defeasing debt.The unsecured credit facility and term notes were paid off on July 11, 2022, in connection with the Grocery-Anchored Portfolio Sale. The mortgage loans payable were assumed by the Grocery-Anchored Purchasers.

The Company maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the ~~Securities~~ Exchange Act, ~~of 1934, as amended (the “Exchange Act”)),~~ designed to ensure that information required to be disclosed in its filings under the Exchange Act is reported within the time periods specified in the rules and regulations of the Securities and Exchange Commission (“SEC”). In this regard, the Company has formed a Disclosure Committee currently comprising several of the Company’s executive officers as well as certain other employees with knowledge of information that may be considered in the SEC reporting process. The Disclosure Committee has responsibility for the development and assessment of the financial and non-financial information to be included in the reports filed with the SEC, and assists the Company’s Chief Executive Officer and Chief Financial Officer in connection with their certifications contained in the Company’s SEC filings. The Disclosure Committee meets regularly and reports to the Audit Committee on a quarterly or more frequent basis. The Company’s Chief Executive Officer and Chief Financial Officer have evaluated its disclosure controls and procedures as of ~~September~~June 30, ~~2021,~~2022, and have concluded that such disclosure controls and procedures are effective.

During the three months ended ~~September~~June 30, ~~2021,~~2022, there have been no changes in the Company’s internal controls over financial reporting or in other factors that have materially affected, or are reasonably likely to materially affect, these internal controls over financial reporting. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well-designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As described above, on March 2, 2022, the Company entered into definitive agreements for the Transactions, which contemplate sale of the Company and all of its assets in a series of related all-cash transactions. On April 5, 2022, a purported stockholder of the Company filed a complaint against the Company and the Board in the United States District Court for the Eastern District of New York, entitled Stein v. Cedar Realty Trust, Inc. et. al., Civil Action No. 22-cv-1944. On April 6, 2022, another purported stockholder of the Company filed a complaint against the Company and the Board in the United States District Court for the Eastern District of New York, entitled Wang v. Cedar Realty Trust, Inc. et. al., Civil Action No. 22-cv-1975. On April 18, 2022, another purported stockholder of the Company filed a complaint against the Company and the Board in the United States District Court for the Eastern District of New York, entitled Whitfield v. Cedar Realty Trust, Inc. et. al., Civil Action No. 22-cv-02204. Also on April 18, 2022, a purported stockholder filed a complaint against the Company and the Board in the United States District Court for the Eastern District of Pennsylvania, entitled Waterman v. Cedar Realty Trust, Inc. et. al., Civil Action No. 22-cv-01489. On April 22, 2022, a purported stockholder filed a complaint against the Company and the Board in the United States District Court for the Eastern District of Pennsylvania, entitled Thornburgh v. Cedar Realty Trust, Inc. et. al., Civil Action No. 22-cv-02304. In each action, the complaint alleges violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) in connection with the proposed Transactions. The complaints generally allege that the preliminary proxy statement on Schedule 14A filed by the Company with the SEC on April 5, 2022 omits material information regarding financial projections, the financial analysis conducted by JLL Securities in connection with its fairness opinion, conflicts of interest on behalf of JLL Securities and BofA Securities, and the terms of BofA Securities’ engagement. The complaints seek, among other things, an injunction preventing the consummation of the Transactions, or, in the event the Transactions are consummated, to recover damages resulting from defendants’ alleged violations of the Exchange Act.

On May 6, 2022, plaintiffs in the Sydney action filed an amended complaint. The amended complaint alleges on behalf of a putative class of holders of the Company’s preferred stock, among other things, against the Company and the Board, claims for breach of contract with respect to the articles supplementary governing the terms of the Company’s preferred stock and breach of fiduciary duty, and, against Wheeler, tortious interference and aiding and abetting breach of fiduciary duty. The Sydney amended complaint seeks, among other things, (i) a declaration that holders of the Company’s preferred stock are entitled to exercise either their liquidation rights or conversion rights as set forth in the articles supplementary, (ii) compensatory damages, (iii) an injunction enjoining the distribution to the Company’s common shareholders of the proceeds of the Grocery-Anchored Portfolio Sale, and (iv) an injunction enjoining the Merger. On May 6, 2022, the plaintiffs in Sydney filed a motion for a preliminary injunction to temporarily enjoin, until the final resolution of the litigation (i) the distribution of the gross proceeds from the Grocery-Anchored Portfolio Sale to the common stockholders, (ii) the closing of the Merger, and (iii) the imposition of a constructive trust over the gross proceeds from both the Grocery Anchored Portfolio Sale and the Merger. Also on May, 6, 2022, a purported holder of the Company’s outstanding preferred stock filed a putative class action complaint against the Company and the Board in the United States District Court for the District of Maryland, entitled Kim v. Cedar Realty Trust, Inc., et al., Civil Action No. 22-cv-01103. The complaint alleges on behalf of a putative class of holders of the Company’s preferred stock, among other things, claims for declaratory and injunctive relief with respect to the articles supplementary governing the terms of the Company’s preferred stock and breach of fiduciary duty. On May 11, 2022, the Company, the Board of Directors of the Company and Wheeler removed the Sydney action to the United States District Court for the District of Maryland, Case No. 8:22-cv-01142-GLR. On May 16, 2022, the court ordered that a hearing on the Sydney plaintiffs’ motion for preliminary injunction will be held on June 22, 2022. On June 2, 2022, the plaintiffs in Kim filed a motion for a preliminary injunction (i) to require that the Company provide preferred shareholders with a vote to approve the Grocery-Anchored Portfolio Sale and the Merger, and (ii) requiring Cedar disclose to preferred shareholders that the Grocery-Anchored Portfolio Sale and Merger entitled the preferred stockholders to exercise their change of control conversion right. The court agreed to consolidate the Kim plaintiffs’ motion for preliminary injunction with the Sydney plaintiffs’ motion for preliminary injunction, and to hear arguments on both motions at the hearing on June 22, 2022.

The Company is not otherwise presently involved in any litigation, nor, to its knowledge, is any litigation threatened against the Company or its subsidiaries, which is either not covered by the Company’s liability insurance, or, in management’s opinion, would result in a material adverse effect on the Company’s financial position or results of operations.

There were no material changes to the Risk Factors disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

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 thereunto duly authorized.


Title of each class	Name of each exchange on which registered	Trading Symbol(s)
Common Stock, $0.06 par value	New York Stock Exchange	CDR
7-1/4% Series B Cumulative Redeemable Preferred Stock, $25.00 Liquidation Value	New York Stock Exchange	CDRpB
6-1/2% Series C Cumulative Redeemable Preferred Stock, $25.00 Liquidation Value	New York Stock Exchange	CDRpC

Forward-Looking Statements		3

Part I. Financial Information

Item 1.	Financial Statements (unaudited)

	Consolidated Balance Sheets – ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021	4

	Consolidated Statements of Operations – Three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021	5

	Consolidated Statements of Comprehensive (Loss) Income – Three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021	6

	Consolidated Statements of Equity – ~~Nine~~Six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021	~~7-10~~7-8

	Consolidated Statements of Cash Flows – ~~Nine~~Six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021	119

	Notes to Consolidated Financial Statements – ~~September~~June 30, ~~2021~~2022	~~12-21~~10-21

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22-30

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30-31

Item 4.	Controls and Procedures	31

Part II. Other Information

Item 1.	Legal Proceedings	3232-33

Item 1A.	Risk Factors	3233

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3233

Item 3.	Defaults ~~upon~~Upon Senior Securities	3233

Item 4.	Mine Safety Disclosures	3233

Item 5.	Other Information	3233

Item 6.	Exhibits	3233

Signatures		3334

							Gain on Sale/
				Date	Sales		Reversal of
Dispositions	Location	GLA		Sold	Price		Impairment
Kempsville Crossing (land parcel)	Virginia Beach, VA		-	2/24/2021	$	1,300,000	$	1,047,000
The Commons	Dubois, PA		203,309	5/5/2021		9,761,000		1,849,000
Camp Hill Shopping Center	Camp Hill, PA		430,198	6/21/2021		89,662,500		48,857,000
			633,507		$	100,723,500	$	51,753,000

							Gain on Sale/
				Date	Sales		Reversal of
Dispositions	Location	GLA		Sold	Price		Impairment
Kempsville Crossing (land parcel)	Virginia Beach, VA		-	2/24/2021	$	1,300,000	$	1,047,000
The Commons	Dubois, PA		203,309	5/5/2021		9,761,000		1,849,000
Camp Hill Shopping Center	Camp Hill, PA		430,198	6/21/2021		89,662,500		48,857,000
			633,507		$	100,723,500	$	51,753,000

By:	/s/ BRUCE J. SCHANZER	By:	/s/ JENNIFER BITTERMAN
	Bruce J. Schanzer		Jennifer Bitterman
	President and Chief Executive Officer (Principal Executive Officer)		Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)


	~~November~~August 4, ~~2021~~2022

Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☐

Emerging growth company	☐

	Series B		Series C
	Preferred Stock		Preferred Stock
Par value	$	0.01	$	0.01
Liquidation value	$	25.00	$	25.00

	June 30, 2022				December 31, 2021
	Series B		Series C		Series B		Series C
	Preferred Stock		Preferred Stock		Preferred Stock		Preferred Stock
Shares authorized		1,450,000		6,450,000		1,450,000		6,450,000
Shares issued and outstanding		1,450,000		5,000,000		1,450,000		5,000,000
Balance	$	34,767,000	$	124,774,000	$	34,767,000	$	124,774,000