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Dec 31, 2020
Cedar Realty Trust Inc Q4 2020 Earnings Report
Reported results for the fourth quarter and full year 2020.
Key Takeaways
Cedar Realty Trust reported a net income attributable to common shareholders of $0.25 per diluted share for Q4 2020. Operating Funds from operations (FFO) was $0.71 per diluted share. Same-property net operating income (NOI) decreased 4.1%.
Operating Funds from operations (FFO) of $0.71 per diluted share for the quarter
NAREIT-defined FFO of $0.71 per diluted share for the quarter
Same-property net operating income (NOI) decreased 4.1% for the quarter
Signed 37 new and renewal leases for 222,000 square feet in the quarter
Cedar Realty Trust Inc
Cedar Realty Trust Inc
Forward Guidance
The Company is not providing per share net income or FFO guidance. However, our current 2021 expectations for the key drivers of our earnings.
Positive Outlook
- Interest expense decreasing by approximately $1.7 million compared to 2020 prior to any proactive debt refinancing transactions completed in 2021.
- Taking into account the one-year extension option the Company has at its election for its revolving credit facility, the Company has no 2021 debt maturities.
- The Company is currently advancing the long-term refinancing of a substantial portion of its 2022 debt maturities.
- Any proactive refinancing will increase interest expense as the proceeds will likely first be used to repay the Company’s revolving credit facility, which currently has a variable interest rate of 1.8%.
- Same-property NOI decreasing approximately 1% to 3% excluding redevelopment properties and 2% to 4% when redevelopment properties are included.
Challenges Ahead
- Decrease in lease termination income of approximately $7.5 million.
- This is substantially driven by the $7.1 million of lease termination income recorded in Q1 2020 related to the Company agreeing to a cash payment in consideration for permitting a dark anchor tenant to terminate its lease prior to the contractual expiration at Metro Square.
- Same-property NOI decreasing approximately 1% to 3% excluding redevelopment properties and 2% to 4% when redevelopment properties are included.
- Property NOI decreasing by approximately $2.5 million related to property dispositions closed in 2020.
- The Company is exploring additional dispositions that, if closed, would further reduce 2021 property NOI.