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Cedar Realty Trust (CDR)

Filed: 25 Jun 21, 4:26pm

Exhibit 99.1

Unaudited Pro Forma Consolidated Financial Statements

On June 21, 2021, Cedar Realty Trust, Inc. (the “Company”) completed the sale to an unaffiliated third party of all of the Company’s interests in Cedar-Camp Hill, LLC, an indirect, wholly-owned subsidiary of the Company through which the Company owned the Camp Hill Shopping Center (“Camp Hill”), a 423,671 square foot grocery-anchored shopping center located in Camp Hill, Pennsylvania. The gross sales price for the property was approximately $89.7 million, before customary closing and transaction costs.

The following unaudited pro forma consolidated financial statements of the Company have been prepared to show the pro forma effect of the disposal of Camp Hill by applying pro forma adjustments to our historical combined financial information. The unaudited pro forma consolidated financial statements are based upon the historical consolidated financial statements of the Company included in its Annual Report on Form 10-K for the year ended December 31, 2020, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. The pro forma consolidated balance sheet has been presented as if the sale of Camp Hill had occurred as of March 31, 2021. The pro forma consolidated statements of operations for the three months ended March 31, 2021 and for the year ended December 31, 2020 are presented as if the sale of Camp Hill had occurred on January 1, 2020.

The following unaudited pro forma consolidated financial information is intended to provide investors with information about the impact of the sale of Camp Hill by showing how specific transactions might have affected historical financial statements, illustrating the scope of the change in the historical financial position and results of operations. This pro forma financial information should not be viewed as indicative of the Company’s financial results in the future and should be read in conjunction with the Company’s financial statements as filed on Form 10-K for the year ended December 31, 2020 and on Form 10-Q for the three-month period ended March 31, 2021. The adjustments made to historical financial information give effect to events that are directly attributable to the disposition of Camp Hill and are factually supportable.


Cedar Realty Trust, Inc.

Unaudited Pro Forma Consolidated Balance Sheet

As of March 31, 2021

 

   Historical (a)  Transaction (b)  Pro Forma 

ASSETS

    

Real estate:

    

Land

  $280,433,000  $—    $280,433,000 

Buildings and improvements

   1,190,060,000   —     1,190,060,000 
  

 

 

  

 

 

  

 

 

 
   1,470,493,000   —     1,470,493,000 

Less accumulated depreciation

   (414,071,000  —     (414,071,000
  

 

 

  

 

 

  

 

 

 

Real estate, net

   1,056,422,000   —     1,056,422,000 

Real estate held for sale

   49,091,000   (39,397,000  9,694,000 

Cash and cash equivalents

   3,138,000   —     3,138,000 

Receivables

   22,818,000   —     22,818,000 

Other assets and deferred charges, net

   48,487,000   (508,000  47,979,000 
  

 

 

  

 

 

  

 

 

 

TOTAL ASSETS

  $1,179,956,000   (39,905,000 $1,140,051,000 
  

 

 

  

 

 

  

 

 

 

LIABILITIES AND EQUITY

    

Mortgage loan payable

  $45,132,000   —    $45,132,000 

Finance lease obligation

   5,334,000   —     5,334,000 

Unsecured revolving credit facility

   179,000,000   (37,053,000  141,947,000 

Unsecured term loans

   398,705,000   (50,000,000  348,705,000 

Accounts payable and accrued liabilities

   53,048,000   (937,000  52,111,000 

Unamortized intangible lease liabilities

   8,639,000   (678,000  7,961,000 
  

 

 

  

 

 

  

 

 

 

Total liabilities

   689,858,000   (88,668,000  601,190,000 
  

 

 

  

 

 

  

 

 

 

Commitments and contingencies

   —     —     —   

Equity:

    

Cedar Realty Trust, Inc. shareholders’ equity:

    

Preferred stock

   159,541,000   —     159,541,000 

Common stock

   818,000   —     818,000 

Treasury stock

   (13,961,000  —     (13,961,000

Additional paid-in capital

   879,413,000   —     879,413,000 

Cumulative distributions in excess of net income

   (525,171,000  48,763,000   (476,408,000

Accumulated other comprehensive (loss)

   (14,645,000  —     (14,645,000
  

 

 

  

 

 

  

 

 

 

Total Cedar Realty Trust, Inc. shareholders’ equity

   485,995,000   48,763,000   534,758,000 
  

 

 

  

 

 

  

 

 

 

Noncontrolling interests:

    

Minority interests in consolidated joint ventures

   1,203,000   —     1,203,000 

Limited partners’ OP Units

   2,900,000   —     2,900,000 
  

 

 

  

 

 

  

 

 

 

Total noncontrolling interests

   4,103,000   —     4,103,000 
  

 

 

  

 

 

  

 

 

 

Total equity

   490,098,000   48,763,000   538,861,000 
  

 

 

  

 

 

  

 

 

 

TOTAL LIABILITIES AND EQUITY

  $1,179,956,000  $(39,905,000 $1,140,051,000 
  

 

 

  

 

 

  

 

 

 

See notes to unaudited pro forma consolidated financial statements.


Cedar Realty Trust, Inc.

Unaudited Pro Forma Consolidated Statement of Operations

For the three months ended March 31, 2021

 

   Historical (c)  Transaction (d)  Pro Forma 

REVENUES

    

Rental revenues

  $33,336,000  $(2,051,000 $31,285,000 

Other

   215,000   (2,000  213,000 
  

 

 

  

 

 

  

 

 

 

Total revenues

   33,551,000   (2,053,000  31,498,000 
  

 

 

  

 

 

  

 

 

 

EXPENSES

    

Operating, maintenance and management

   7,780,000   (346,000  7,434,000 

Real estate and other property-related taxes

   5,120,000   (317,000  4,803,000 

General and administrative

   4,528,000   —     4,528,000 

Depreciation and amortization

   11,211,000   (423,000  10,788,000 
  

 

 

  

 

 

  

 

 

 

Total expenses

   28,639,000   (1,086,000  27,553,000 
  

 

 

  

 

 

  

 

 

 

OTHER

    

Gain on sales

   1,047,000   —     1,047,000 

Impairment charges

   —     —     —   
  

 

 

  

 

 

  

 

 

 

Total other

   1,047,000   —     1,047,000 
  

 

 

  

 

 

  

 

 

 

OPERATING INCOME

   5,959,000   (967,000  4,992,000 

NON-OPERATING INCOME AND EXPENSES

    

Interest expense

   (4,706,000  576,000   (4,130,000
  

 

 

  

 

 

  

 

 

 

Total non-operating income and expenses

   (4,706,000  576,000   (4,130,000
  

 

 

  

 

 

  

 

 

 

NET INCOME (LOSS)

   1,253,000   (391,000  862,000 

Net (income) loss attributable to noncontrolling interests:

    

Minority interests in consolidated joint ventures

   (150,000  —     (150,000

Limited partners’ interest in Operating Partnership

   9,000   2,000   11,000 
  

 

 

  

 

 

  

 

 

 

Total net (income) attributable to noncontrolling interests

   (141,000  2,000   (139,000
  

 

 

  

 

 

  

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.

   1,112,000   (389,000  723,000 

Preferred stock dividends

   (2,688,000  —     (2,688,000
  

 

 

  

 

 

  

 

 

 

NET (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

  $(1,576,000 $(389,000 $(1,965,000
  

 

 

  

 

 

  

 

 

 

NET (LOSS) PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND DILUTED):

  $(0.12 $(0.03 $(0.15
  

 

 

  

 

 

  

 

 

 

Weighted average number of common shares - basic and diluted

   13,144,000   13,144,000   13,144,000 
  

 

 

  

 

 

  

 

 

 

See notes to unaudited pro forma consolidated financial statements.


Cedar Realty Trust, Inc.

Unaudited Pro Forma Consolidated Statement of Operations

For the year ended December 31, 2020

 

   Historical (e)  Transaction (f)  Pro Forma 

REVENUES

    

Rental revenues

  $127,171,000  $(8,129,000 $119,042,000 

Other

   8,367,000   (14,000  8,353,000 
  

 

 

  

 

 

  

 

 

 

Total revenues

   135,538,000   (8,143,000  127,395,000 
  

 

 

  

 

 

  

 

 

 

EXPENSES

    

Operating, maintenance and management

   25,545,000   (1,345,000  24,200,000 

Real estate and other property-related taxes

   20,051,000   (1,255,000  18,796,000 

General and administrative

   16,865,000   —     16,865,000 

Depreciation and amortization

   48,412,000   (1,701,000  46,711,000 
  

 

 

  

 

 

  

 

 

 

Total expenses

   110,873,000   (4,301,000  106,572,000 
  

 

 

  

 

 

  

 

 

 

OTHER

    

Gain on sales

   4,396,000   ��     4,396,000 

Impairment charges

   (7,607,000  —     (7,607,000
  

 

 

  

 

 

  

 

 

 

Total other

   (3,211,000  —     (3,211,000
  

 

 

  

 

 

  

 

 

 

OPERATING INCOME

   21,454,000   (3,842,000  17,612,000 

NON-OPERATING INCOME AND EXPENSES

    

Interest expense

   (21,974,000  2,485,000   (19,489,000
  

 

 

  

 

 

  

 

 

 

Total non-operating income and expenses

   (21,974,000  2,485,000   (19,489,000
  

 

 

  

 

 

  

 

 

 

NET (LOS S ) INCOME

   (520,000  (1,357,000  (1,877,000

Net (income) loss attributable to noncontrolling interests:

    

Minority interests in consolidated joint ventures

   (618,000  —     (618,000

Limited partners’ interest in Operating Partnership

   66,000   7,000   73,000 
  

 

 

  

 

 

  

 

 

 

Total net (income) attributable to noncontrolling interests

   (552,000  7,000   (545,000
  

 

 

  

 

 

  

 

 

 

NET (LOS S ) INCOME ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.

   (1,072,000  (1,350,000  (2,422,000

Preferred stock dividends

   (10,752,000  —     (10,752,000
  

 

 

  

 

 

  

 

 

 

NET (LOS S ) ATTRIBUTABLE TO COMMON SHAREHOLDERS

  $(11,824,000 $(1,350,000 $(13,174,000
  

 

 

  

 

 

  

 

 

 

NET (LOS S ) PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BAS IC AND DILUTED):

  $(0.92 $(0.10 $(1.02
  

 

 

  

 

 

  

 

 

 

Weighted average number of common shares - basic and diluted

   13,104,000   13,104,000   13,104,000 
  

 

 

  

 

 

  

 

 

 

See notes to unaudited pro forma consolidated financial statements.


Cedar Realty Trust, Inc.

Notes to Unaudited Pro Forma Consolidated Financial Statements

Unaudited Pro Forma Consolidated Balance Sheet as of March 31, 2021

 

 (a)

Historical Balances - Reflects the unaudited consolidated balance sheet of the Company as contained in its historical unaudited consolidated financial statements included in its Form 10-Q as of and for the three months ended March 31, 2021 previously filed with the SEC on May 6, 2021.

 

 (b)

Transaction - Represents the de-recognition of carrying amounts at March 31, 2021 for the assets and the related accumulated depreciation and working capital assets and liabilities related to Camp Hill and reflects the net cash proceeds from the sale used to pay down debt.

Unaudited Pro Forma Consolidated Statement of Operations for the three months ended March 31, 2021

 

 (c)

Historical Balances - Reflects the audited consolidated statement of operations of the Company as contained in its historical unaudited consolidated financial statements for the three months included in its Form 10-Q as of and for the three months ended March 31, 2021 previously filed with the SEC on May 6, 2021.

 

 (d)

Transaction - Represents the historical combined revenues and expenses of Camp Hill for the three months ended March 31, 2021 as if the disposition had occurred on January 1, 2020, and the reflect a reduction of interest expense related to the pay down of debt.

Unaudited Pro Forma Consolidated Statement of Operations for the year ended December 31, 2020

 

 (e)

Historical Balances - Reflects the audited consolidated statement of operations of the Company as contained in its historical audited consolidated financial statements included in its Annual Report on Form 10-K as of and for the year ended December 31, 2020 previously filed with the SEC on February 11, 2021.

 

 (f)

Transaction - Represents the historical combined revenues and expenses of Camp Hill for the twelve months ended December 31, 2020 as if the disposition had occurred on January 1, 2020, and the reflect a reduction of interest expense related to pay down of debt.