Cedar Shopping Centers Inc. (CDR, Financial) filed Quarterly Report for the period ended 2010-06-30.
Cedar Shopping Centers Inc. has a market cap of $379 million; its shares were traded at around $6.19 with and P/S ratio of 2.1. The dividend yield of Cedar Shopping Centers Inc. stocks is 5.8%. Cedar Shopping Centers Inc. had an annual average earning growth of 5.8% over the past 5 years.CDR is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Pioneer Investments.
Total revenues decreased primarily as a result of (i) a decrease in base rents ($0.7 million), (ii) a decrease in non-cash amortization of intangible lease liabilities primarily as a result of the completion of scheduled amortization at certain properties ($0.6 million), (iii) a decrease in tenant recovery income ($0.4 million), and (iv) a decrease in percentage rent ($0.1 million), partially offset by an increase in straight-line rental income and an increase in other income ($0.1 million). In connection with the worsening economic climate beginning in the latter part of 2008 and continuing throughout the respective periods, the Company received a number of requests from tenants for rent relief. While the Company did in fact grant such relief in selected limited circumstances, the aggregate amount of such relief granted had a limited impact on results of operations. However, there can be no assurance that the amount of such relief will not become more significant in future periods.
Non-operating income and expense, net, increased primarily as a result of (i) higher amortization of deferred financing costs ($0.5 million) resulting from (a) extending the secured revolving stabilized property credit facility, originally in January 2009 and again in November 2009, and (b) the secured revolving development property credit facility and the property-specific construction facility, having closed in June 2008 and September 2008, respectively, being outstanding throughout all of 2009, (ii) higher loan interest expense principally related to an increase in the interest rate for the secured revolving stabilized property credit facility, and an increase in borrowings under the secured revolving development property credit facility, which was partially offset by a reduction in the outstanding balance of the stabilized property line of credit ($0.5 million), (iii) a decrease in development activity reducing the amount of interest expense capitalized to development projects ($0.7 million), partially offset by (iv) a decrease in mortgage interest expense ($0.7 million) principally related to the transfer of properties to the Cedar/RioCan joint venture, and (v) an increase in equity in income of unconsolidated joint ventures ($0.2 million).
Total revenues decreased primarily as a result of (i) a decrease in non-cash amortization of intangible lease liabilities primarily as a result of the completion of scheduled amortization at certain properties ($1.4 million) (which also resulted in a decrease in depreciation and amortization expense), (ii) a decrease in base rents ($1.2 million), (iii) a decrease in tenant recovery income ($0.6 million), (iv) a decrease in other income predominately related to insurance proceeds received during the second quarter of 2009 ($0.1 million), (v) a decrease in non-cash straight-line rents primarily as a result of early lease terminations ($0.1 million) and (vi) a decrease in percentage rent ($0.1 million). In connection with the worsening economic climate beginning in the latter part of 2008 and continuing throughout the respective periods, the Company received a number of requests from tenants for rent relief. While the Company did in fact grant such relief in selected limited circumstances, the aggregate amount of such relief granted had a limited impact on results of operations.
Property operating expenses increased primarily as a result of (i) an increase in snow removal costs ($0.6 million), (ii) an increase in utilities ($0.1 million) and (iii) an increase in repairs and maintenance ($0.1 million), partially offset by (iv) a decrease in insurance expense ($0.3 million) and (v) a decrease in bad debt expense ($0.1 million).
Non-operating income and expense, net, increased primarily as a result of (i) higher amortization of deferred financing costs ($1.0 million) resulting from (a) extending the secured revolving stabilized property credit facility, originally in January 2009 and again in November 2009, and (b) the secured revolving development property credit facility and the property-specific construction facility, closed in June 2008 and September 2008, respectively, and outstanding throughout all of 2009, (ii) higher loan interest expense principally related to an increase in the interest rate for the secured revolving stabilized property credit facility and increase in borrowings under the secured revolving development property credit facility, which was partially offset by a reduction in the outstanding balance of the secured revolving stabilized property credit facility ($1.6 million), (iii) a decrease in the development activity reducing the amount of interest expense capitalized to the development projects ($1.3 million), (iv) a decrease in the gain on sale of land parcel ($0.2 million), partially offset by (v) a decrease in mortgage interest expense ($0.4 million) principally related to the transfer of properties to the Cedar/RioCan joint venture, and (vi) an increase in equity in income of unconsolidated joint ventures ($0.3 million).
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Cedar Shopping Centers Inc. has a market cap of $379 million; its shares were traded at around $6.19 with and P/S ratio of 2.1. The dividend yield of Cedar Shopping Centers Inc. stocks is 5.8%. Cedar Shopping Centers Inc. had an annual average earning growth of 5.8% over the past 5 years.CDR is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Pioneer Investments.
Highlight of Business Operations:
Differences in results of operations between 2010 and 2009 were primarily the result of the impact of the Cedar/RioCan joint venture transactions, the Companys property acquisition/disposition program, and continuing development/redevelopment activities. During the period January 1, 2009 through June 30, 2010, the Company acquired two shopping centers aggregating approximately 522,000 square feet of GLA for a total cost of approximately $72.5 million. In addition, the Company placed into service four ground-up developments having an aggregate cost of approximately $150.8 million. The Company sold ten drug store/convenience centers aggregating approximately 311,000 square feet of GLA for an aggregate sales price of approximately $27.7 million. In addition, as of June 30, 2010, the Company has treated as held for sale a supermarket-anchored shopping center aggregating approximately 105,000 square feet of GLA. The Company has transferred seven properties to the Cedar/RioCan joint venture, aggregating approximately 1,167,000 square feet of GLA. In connection with such transfer, the Company realized approximately $64 million in net proceeds. Net (loss) income was ($2.5) million and $1.9 million for three months ended June 30, 2010 and 2009, respectively, and ($3.7) million and $7.6 million for the six months ended June 30, 2010 and 2009, respectively.Total revenues decreased primarily as a result of (i) a decrease in base rents ($0.7 million), (ii) a decrease in non-cash amortization of intangible lease liabilities primarily as a result of the completion of scheduled amortization at certain properties ($0.6 million), (iii) a decrease in tenant recovery income ($0.4 million), and (iv) a decrease in percentage rent ($0.1 million), partially offset by an increase in straight-line rental income and an increase in other income ($0.1 million). In connection with the worsening economic climate beginning in the latter part of 2008 and continuing throughout the respective periods, the Company received a number of requests from tenants for rent relief. While the Company did in fact grant such relief in selected limited circumstances, the aggregate amount of such relief granted had a limited impact on results of operations. However, there can be no assurance that the amount of such relief will not become more significant in future periods.
Non-operating income and expense, net, increased primarily as a result of (i) higher amortization of deferred financing costs ($0.5 million) resulting from (a) extending the secured revolving stabilized property credit facility, originally in January 2009 and again in November 2009, and (b) the secured revolving development property credit facility and the property-specific construction facility, having closed in June 2008 and September 2008, respectively, being outstanding throughout all of 2009, (ii) higher loan interest expense principally related to an increase in the interest rate for the secured revolving stabilized property credit facility, and an increase in borrowings under the secured revolving development property credit facility, which was partially offset by a reduction in the outstanding balance of the stabilized property line of credit ($0.5 million), (iii) a decrease in development activity reducing the amount of interest expense capitalized to development projects ($0.7 million), partially offset by (iv) a decrease in mortgage interest expense ($0.7 million) principally related to the transfer of properties to the Cedar/RioCan joint venture, and (v) an increase in equity in income of unconsolidated joint ventures ($0.2 million).
Total revenues decreased primarily as a result of (i) a decrease in non-cash amortization of intangible lease liabilities primarily as a result of the completion of scheduled amortization at certain properties ($1.4 million) (which also resulted in a decrease in depreciation and amortization expense), (ii) a decrease in base rents ($1.2 million), (iii) a decrease in tenant recovery income ($0.6 million), (iv) a decrease in other income predominately related to insurance proceeds received during the second quarter of 2009 ($0.1 million), (v) a decrease in non-cash straight-line rents primarily as a result of early lease terminations ($0.1 million) and (vi) a decrease in percentage rent ($0.1 million). In connection with the worsening economic climate beginning in the latter part of 2008 and continuing throughout the respective periods, the Company received a number of requests from tenants for rent relief. While the Company did in fact grant such relief in selected limited circumstances, the aggregate amount of such relief granted had a limited impact on results of operations.
Property operating expenses increased primarily as a result of (i) an increase in snow removal costs ($0.6 million), (ii) an increase in utilities ($0.1 million) and (iii) an increase in repairs and maintenance ($0.1 million), partially offset by (iv) a decrease in insurance expense ($0.3 million) and (v) a decrease in bad debt expense ($0.1 million).
Non-operating income and expense, net, increased primarily as a result of (i) higher amortization of deferred financing costs ($1.0 million) resulting from (a) extending the secured revolving stabilized property credit facility, originally in January 2009 and again in November 2009, and (b) the secured revolving development property credit facility and the property-specific construction facility, closed in June 2008 and September 2008, respectively, and outstanding throughout all of 2009, (ii) higher loan interest expense principally related to an increase in the interest rate for the secured revolving stabilized property credit facility and increase in borrowings under the secured revolving development property credit facility, which was partially offset by a reduction in the outstanding balance of the secured revolving stabilized property credit facility ($1.6 million), (iii) a decrease in the development activity reducing the amount of interest expense capitalized to the development projects ($1.3 million), (iv) a decrease in the gain on sale of land parcel ($0.2 million), partially offset by (v) a decrease in mortgage interest expense ($0.4 million) principally related to the transfer of properties to the Cedar/RioCan joint venture, and (vi) an increase in equity in income of unconsolidated joint ventures ($0.3 million).
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