Cedar Shopping Centers Inc. (CDR, Financial) filed Quarterly Report for the period ended 2009-09-30.
CEDAR INCM LTD is engaged in ownership management operation and leasing of real-estate properties principally office and retail located in four U.S. states: Utah Illinois Florida and Kentucky. Cedar Shopping Centers Inc. has a market cap of $272.6 million; its shares were traded at around $6.05 with a P/E ratio of 4.9 and P/S ratio of 1.6.
Total revenues decreased primarily as a result of (i) a decrease in other income consisting primarily of insurance proceeds received in the third quarter of 2008 at a single property ($383,000), (ii) a decrease in tenant recoveries primarily due to a lower collection rate on billable operating expenses ($215,000), (iii) a decrease in percentage rent ($176,000), (iv) a decrease in base rent ($155,000), and (v) a decrease in non-cash straight-line rental income primarily due to early lease terminations ($122,000), offset by (vi) a net increase ($496,000) in non-cash amortization of intangible lease liabilities primarily due to a tenant vacating its leased premises, off-set by the completion of scheduled amortization at certain properties; these intangible changes also resulted in a decrease in depreciation and amortization expense. In connection with the worsening economic climate beginning in the latter part of 2008 and continuing into 2009, the Company received a number of requests from tenants for rent relief. While the Company did in fact grant such relief in selected 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 due to (i) increased interest costs from borrowings for assumed debt related to property acquisitions and the purchase of a joint venture partners interest ($1,128,000), (ii) increased interest costs from property-specific mortgage financings ($530,000), (iii) higher amortization of deferred financing costs ($519,000) primarily due to costs incurred in closing the secured revolving development property credit facility in June 2008 and extending the secured revolving stabilized property credit facility in January 2009, (iv) lower equity in income of unconsolidated joint venture ($50,000), and (v) lower interest income as a result of lower cash balances and lower prevailing interest rates ($23,000), offset by (vi) lower prevailing interest rates applicable to the Companys variable-rate debt ($658,000).
Total revenues decreased primarily as a result of (i) a decrease in non-cash straight-line rental income primarily due to early lease terminations ($540,000), (ii) a decrease in other income consisting primarily of insurance proceeds received in the second and third quarters of 2008 at two properties ($518,000), (iii) a decrease in base rent ($92,000), and (iv) a decrease in percentage rent ($57,000), offset by (v) an increase in tenant recoveries primarily due to a net increase in billable property operating expenses ($878,000), and (vi) a net increase ($121,000) in non-cash amortization of intangible lease liabilities primarily due to tenants vacating their leased premises, off-set by the completion of scheduled amortization at certain properties; these intangible changes also resulted in a decrease in depreciation and amortization expense. In connection with the worsening economic climate beginning in the latter part of 2008 and continuing into 2009, the Company received a number of requests from tenants for rent relief. While the Company did in fact grant such relief in selected 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.
(iii) an increase in snow removal costs ($736,000), offset by decreases in (iv) insurance expense ($232,000), (v) landscaping expense ($158,000), and (vi) a number of other operating expenses ($549,000).
Non-operating income and expense, net, increased primarily due to (i) increased interest costs from borrowings for assumed debt related to property acquisitions and the purchase of a joint venture partners interest ($3,161,000), (ii) higher amortization of deferred financing costs ($1,182,000) primarily due to costs incurred in closing the secured revolving development property credit facility in June 2008 and extending the secured revolving stabilized property credit facility in January 2009, (iii) lower interest income as a result of lower cash balances and lower prevailing interest rates ($243,000), and (iv) increased interest costs from property-specific mortgage financings ($35,000), offset by (v) lower prevailing interest rates applicable to the Companys variable-rate debt ($1,814,000), (vi) a gain on the sale of a land parcel ($236,000), and (vii) higher equity in income of unconsolidated joint venture ($120,000).
Read the The complete ReportCDR is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
CEDAR INCM LTD is engaged in ownership management operation and leasing of real-estate properties principally office and retail located in four U.S. states: Utah Illinois Florida and Kentucky. Cedar Shopping Centers Inc. has a market cap of $272.6 million; its shares were traded at around $6.05 with a P/E ratio of 4.9 and P/S ratio of 1.6.
Highlight of Business Operations:
A substantial portion of the differences in results of operations between the three and nine months ended September 30, 2009 and 2008, respectively, was the result of the Companys property acquisition program and continuing development/redevelopment activities. During the period January 1, 2008 through September 30, 2009, the Company acquired six shopping and convenience centers aggregating approximately 790,000 sq. ft. of GLA, purchased the joint venture minority interests in four properties, and acquired approximately 182 acres of land for development, expansion and/or future development, for a total cost of approximately $189.0 million. In addition, the Company placed into service five ground-up developments having an aggregate cost of approximately $148.5 million. Net income was $3.8 million and $5.8 million for the three months ended September 30, 2009 and 2008, respectively, and $11.6 million and $15.5 million for the nine months ended September 30, 2009 and 2008, respectively.Total revenues decreased primarily as a result of (i) a decrease in other income consisting primarily of insurance proceeds received in the third quarter of 2008 at a single property ($383,000), (ii) a decrease in tenant recoveries primarily due to a lower collection rate on billable operating expenses ($215,000), (iii) a decrease in percentage rent ($176,000), (iv) a decrease in base rent ($155,000), and (v) a decrease in non-cash straight-line rental income primarily due to early lease terminations ($122,000), offset by (vi) a net increase ($496,000) in non-cash amortization of intangible lease liabilities primarily due to a tenant vacating its leased premises, off-set by the completion of scheduled amortization at certain properties; these intangible changes also resulted in a decrease in depreciation and amortization expense. In connection with the worsening economic climate beginning in the latter part of 2008 and continuing into 2009, the Company received a number of requests from tenants for rent relief. While the Company did in fact grant such relief in selected 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 due to (i) increased interest costs from borrowings for assumed debt related to property acquisitions and the purchase of a joint venture partners interest ($1,128,000), (ii) increased interest costs from property-specific mortgage financings ($530,000), (iii) higher amortization of deferred financing costs ($519,000) primarily due to costs incurred in closing the secured revolving development property credit facility in June 2008 and extending the secured revolving stabilized property credit facility in January 2009, (iv) lower equity in income of unconsolidated joint venture ($50,000), and (v) lower interest income as a result of lower cash balances and lower prevailing interest rates ($23,000), offset by (vi) lower prevailing interest rates applicable to the Companys variable-rate debt ($658,000).
Total revenues decreased primarily as a result of (i) a decrease in non-cash straight-line rental income primarily due to early lease terminations ($540,000), (ii) a decrease in other income consisting primarily of insurance proceeds received in the second and third quarters of 2008 at two properties ($518,000), (iii) a decrease in base rent ($92,000), and (iv) a decrease in percentage rent ($57,000), offset by (v) an increase in tenant recoveries primarily due to a net increase in billable property operating expenses ($878,000), and (vi) a net increase ($121,000) in non-cash amortization of intangible lease liabilities primarily due to tenants vacating their leased premises, off-set by the completion of scheduled amortization at certain properties; these intangible changes also resulted in a decrease in depreciation and amortization expense. In connection with the worsening economic climate beginning in the latter part of 2008 and continuing into 2009, the Company received a number of requests from tenants for rent relief. While the Company did in fact grant such relief in selected 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.
(iii) an increase in snow removal costs ($736,000), offset by decreases in (iv) insurance expense ($232,000), (v) landscaping expense ($158,000), and (vi) a number of other operating expenses ($549,000).
Non-operating income and expense, net, increased primarily due to (i) increased interest costs from borrowings for assumed debt related to property acquisitions and the purchase of a joint venture partners interest ($3,161,000), (ii) higher amortization of deferred financing costs ($1,182,000) primarily due to costs incurred in closing the secured revolving development property credit facility in June 2008 and extending the secured revolving stabilized property credit facility in January 2009, (iii) lower interest income as a result of lower cash balances and lower prevailing interest rates ($243,000), and (iv) increased interest costs from property-specific mortgage financings ($35,000), offset by (v) lower prevailing interest rates applicable to the Companys variable-rate debt ($1,814,000), (vi) a gain on the sale of a land parcel ($236,000), and (vii) higher equity in income of unconsolidated joint venture ($120,000).
Read the The complete ReportCDR is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
