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CEDAR REALTY TRUST, INC. (CDR-PB)·Q4 2024 Earnings Summary

Executive Summary

  • Cedar’s Q4 2024 portfolio metrics improved sequentially: occupancy rose to 86.7% (from 86.3% in Q3), while leased rate was 88.9%; however, Annualized Base Rent (ABR) declined to $22.037M from $23.948M in Q3, reflecting asset sales and mix shifts .
  • Leasing quality inflected positively: Q4 new lease rent spread jumped to 79.72% with a $31.31/sf weighted-average rate, and renewal rent spread accelerated to 22.33% ($3.15/sf), signaling pricing power and re-tenanting momentum at key centers .
  • Cedar continued de-risking capital structure for preferred holders: a modified Dutch auction in late Q4 and acceptance in January 2025 retired 645,276 Series C shares at $15.75, targeting ~$1.0M annual dividend savings; cumulative 2024 repurchases totaled 791,306 shares (weighted average $13.93) .
  • Parent WHLR’s consolidated Q4 revenue was $27.593M; same‑property NOI rose 4.8% YoY and operating expense declined YoY, aided by lower D&A and salaries, though legal and tax expenses rose; Q4 diluted EPS was $(3.79) due to capital structure and derivative fair value dynamics .
  • Dividends for Cedar Series B/C were maintained at $0.453125/$0.406250 per share (declared Jan 30, 2025, paid Feb 20, 2025), reinforcing stability for preferred investors despite portfolio rotation .

What Went Well and What Went Wrong

What Went Well

  • “CDR Quarter-To-Date Leasing Activity… Signed 5 new leases totaling 9,976 square feet with a weighted-average rental rate of $31.31 per square foot, representing a new rent spread of 79.72%.” This indicates strong rent lift on new demand .
  • Same‑property NOI increased by 4.8% in Q4 (up ~$0.7M), driven by a $1.2M rise in property revenue, partially offset by $0.4M higher property expense—positive underlying property performance .
  • Preferred equity optimization: Cedar’s tender offer accepted post‑quarter retired 645,276 Series C shares at $15.75 (~$10.2M), with management targeting ~$1.0M annual dividend savings—an accretive path for preferred cash flows .

What Went Wrong

  • ABR fell sequentially from $23.948M (Q3) to $22.037M (Q4) for Cedar, reflecting dispositions and specific asset challenges (e.g., South Philadelphia sale at a loss) that lower rent base near‑term .
  • Fieldstone Marketplace remained only 53.5% occupied in Q4 (no change from Q3), highlighting lingering vacancy in certain centers that constrains ABR recovery .
  • Q3 headwinds included credit adjustments tied to Big Lots’ bankruptcy (approx. 0.2M reserved), underscoring tenant risk in parts of the portfolio (improvement implied by Q4 operations, but ongoing monitoring required) .

Financial Results

Note: Cedar’s standalone revenue/EPS are not separately disclosed; Cedar is consolidated within WHLR. We present WHLR consolidated financials for context and Cedar portfolio KPIs for precision .

Cedar Portfolio KPIs (Cedar Realty Trust)

MetricQ2 2024Q3 2024Q4 2024
Occupancy Rate (%)86.0% 86.3% 86.7%
Leased Rate (%)90.1% 89.7% 88.9%
Annualized Base Rent ($USD Thousands)$25,432 $23,948 $22,037
Total Leases Signed or Renewed (count)14 16 14
Total Leases Signed or Renewed (sq ft)73,069 104,813 56,606
New Rent Spread (%)(3.72)% (13.38)% 79.72%
New Leases Weighted Avg Rate ($/sf)$11.00 $16.73 $31.31
Renewal Rent Spread (%)9.25% 10.26% 22.33%
Renewals Weighted Avg Rate ($/sf)$1.17 $1.12 $3.15

WHLR Consolidated (Context)

Metric ($USD Thousands unless noted)Q2 2024Q3 2024Q4 2024
Total Revenue$26,317 $24,792 $27,593
Operating Income$11,522 $13,894 $4,637
Total Operating Expenses$17,678 $17,981 $18,540
Net Income (Loss)$(2,358) $(30,631) $39,762
Basic EPS ($)$(13.74) $(91.99) $173.35
Diluted EPS ($)$(13.74) $(91.99) $(3.79)
Same‑Property NOI$16,241 $14,923 $16,109

Segment/Property Notes (Cedar)

  • South Philadelphia (disposed 12/26/2024 for $21.0M; loss of $5.4M), reinforcing ABR decline and portfolio simplification .
  • Fieldstone Marketplace occupancy at 53.5% in Q4 vs 53.5% Q3—target for leasing turnaround .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cedar Series B Preferred Dividend/ShareQ4 2024 / Q1 2025 payable$0.453125 (Q4 declared Oct 21, 2024) $0.453125 (declared Jan 30, 2025; paid Feb 20, 2025) Maintained
Cedar Series C Preferred Dividend/ShareQ4 2024 / Q1 2025 payable$0.406250 (Q4 declared Oct 21, 2024) $0.406250 (declared Jan 30, 2025; paid Feb 20, 2025) Maintained
Annual Dividend Savings (Cedar Series C tender)Forward (CY 2025)N/A~$1.0M savings from Dec 2024/Jan 2025 repurchases New

Note: No formal revenue/margin/OpEx guidance ranges were furnished in the Q4 filings; the company provided operational highlights and subsequent events (tenders/dispositions) rather than quantified guidance ranges .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was furnished via 8‑K; the company provided a press release and supplemental information instead .

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Leasing spreads (new/renewal)New: 29.93%; Renewal: 10.76%; new WAR $13.47/sf New: (13.38)%; Renewal: 10.26%; new WAR $16.73/sf New: 79.72%; Renewal: 22.33%; new WAR $31.31/sf Strong improvement in Q4
Occupancy/leasing rate (Cedar)86.0% / 90.1% 86.3% / 89.7% 86.7% / 88.9% Occupancy up; leased slightly down
Capital markets actions (Cedar preferred)Revolver activity; dividend declarations Sep–Oct 2024 Dutch auction: 688,670 Series C at $14.00; additional repurchases Dec 2024/Jan 2025 tender: 645,276 Series C at $15.75; ~$1.0M annual dividend savings Ongoing reduction of preferred dividends
Tenant credit events—Big Lots bankruptcy; ~0.2M reserved Not highlighted in Q4 summary; portfolio occupancy improved Prior issue; monitoring
Dispositions/portfolio rotationHarbor Point settlement; Oakland Commons sale Kings Plaza sale; Edenton land sale South Philadelphia sale at loss; Webster Commons sold Feb 2025 Active pruning; mixed P&L impact
Debt/interest expenseQ2 total interest expense $8.778M Q3 total interest expense $7.851M Q4 total interest expense $8.568M Stable with slight variation

Management Commentary

  • “Same‑Property NOI increased by 4.8% or $0.7 million… impacted by $1.2 million increase in property revenue; partially offset by $0.4 million increase in property operating expense.” Emphasizes core property performance resilience .
  • “CDR Quarter-To-Date Leasing Activity… Executed 9 lease renewals totaling 46,630 square feet at a weighted‑average increase of $3.15 per square foot… Signed 5 new leases… new rent spread of 79.72%.” Signifies pricing strength and positive re‑tenanting into year‑end .
  • “Following the expiration of the December 2024 Cedar Tender Offer on January 28, 2025, the Company accepted for purchase 645,276 shares… at $15.75 per share… will provide future annual dividend savings of $1.0 million.” Preferred liability optimization to reduce cash outflows .

Q&A Highlights

  • No Q4 earnings call transcript was furnished alongside the press release and supplemental 8‑K exhibits; thus, no Q&A items were available from filings .

Estimates Context

  • Wall Street consensus EPS and revenue estimates via S&P Global were unavailable at time of preparation due to data access limits; will update when accessible. Values would typically be sourced from S&P Global consensus for comparison vs actuals (unavailable).

Key Takeaways for Investors

  • Sequential occupancy/leased stabilization, with outsized Q4 leasing spreads and higher rates on new/renewed leases, should support medium‑term ABR recovery as vacancies at under‑performing centers (e.g., Fieldstone Marketplace) are addressed .
  • ABR contracted QoQ due to dispositions and mix; expect near‑term rent base softness but improving pricing power could offset over time if leasing velocity persists .
  • Preferred holders benefit from proactive capital actions: cumulative 2024/early‑2025 repurchases and tender reduce dividend burden (~$1.0M annual savings), enhancing cash coverage of remaining preferred obligations .
  • Portfolio pruning remains active; while certain sales incur losses (South Philadelphia), the strategy aims to focus capital on stronger centers and improve portfolio quality .
  • Consolidated WHLR Q4 fundamentals show revenue growth and higher same‑property NOI YoY, though EPS is impacted by capital structure/derivative fair value; Cedar’s contribution is visible via leasing and ABR metrics .
  • Watch tenant health (Big Lots bankruptcy exposure noted in Q3) and specific center vacancies—execution on re‑tenanting will be key to sustaining spreads and ABR .
  • Without formal guidance, investors should track quarterly leasing spreads, occupancy, and ABR trends alongside dividend declarations and preferred repurchase cadence for signals on cash flow trajectory .

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