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CEDAR REALTY TRUST, INC. (CDR-PC)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 revenue grew 3.9% year over year to $8.61M but declined sequentially vs Q1’s $8.77M; bottom line improved to near breakeven net income of $0.02M vs a $1.07M loss in Q2’23, while loss to common narrowed to $(2.67)M; EPS to common was $(0.19) vs $(0.27) YoY .
  • Same-Property NOI increased 7.9% YoY on 200 bps occupancy improvement and higher base rent per square foot; end-period occupancy reached 86.0% and leased 90.1% .
  • Capital allocation/catalysts: Board declared Q3 preferred dividends (Series B $0.453125; Series C $0.40625) and authorized up to $10M preferred stock repurchases over 12 months, supporting preferreds’ technical bid .
  • Liquidity and balance sheet: $145.1M secured term loans outstanding (WAC ~5.6%); revolver (up to $9.5M) matures Feb 28, 2025; interest expense rose on higher balance/rate and financing cost amortization .
  • No Street consensus identified via S&P Global for this security; comparisons are vs prior year and prior quarter; no formal guidance disclosed .

What Went Well and What Went Wrong

What Went Well

  • Same-Property NOI growth: “Same-Property NOI… increased 7.9%… driven primarily by an increase in average base rent of $0.13 per square foot and an increase in occupancy of 200 basis points.”
  • Operating leverage: Lower G&A (-34% YoY) and sharply lower D&A (-29.8% YoY) helped drive operating income to $2.33M from $0.88M in Q2’23 .
  • Portfolio actions: Sold Oakland Commons for $6.0M (small loss); classified South Philadelphia components as held for sale, positioning for capital recycling .

What Went Wrong

  • Higher interest burden: Net interest expense increased 18.5% YoY on higher average debt, higher rates, and higher amortization of deferred financing costs, offsetting operating gains .
  • Loss to common persists: Despite net income of $0.02M, preferred dividends of $2.69M resulted in a $(2.67)M net loss to common; EPS $(0.19) vs $(0.27) YoY .
  • Near-term refinancing watch: Revolver matures Feb 28, 2025; management cites intent to fund TIs/LCs with restricted cash, asset sales, and property financings amid construction commitments ($3.5M) .

Financial Results

MetricQ2 2023Q1 2024Q2 2024
Total Revenues ($USD Millions)$8.284 $8.765 $8.611
Net Income ($USD Millions)$(1.067) $0.323 $0.018
Net Loss Attributable to Common ($USD Millions)$(3.755) $(2.365) $(2.670)
EPS to Common ($)$(0.27) $(0.17) $(0.19)
FFO applicable to common ($USD Millions)$(0.446) $(0.473) $(0.292)
AFFO applicable to common ($USD Millions)$(0.732) $(0.634) $(0.240)

KPIs and Operating Metrics

KPIQ2 2023Q1 2024Q2 2024
Same-Property NOI ($USD Millions)$4.702 $4.817 $5.074
Same-Property Occupancy (end of period)84.0% 85.3% 86.0%
Same-Property Leased (end of period)87.3% 89.5% 90.1%
Same-Property Avg Base Rent ($/sf)$10.66 $10.59 $10.79
Renewals – Weighted Avg Change vs Prior Rate+6.55% +3.07% +9.25%
New Leases – Weighted Avg Change vs Prior Rate+16.62% -12.46% -3.72%

Balance Sheet and Liquidity

ItemQ4 2023Q1 2024Q2 2024
Total Loans Payable, Net ($USD Millions)$140.494 $141.590 $141.701
Secured Term Loans Outstanding (par) ($USD Millions)—$145.060 $145.060
Revolving Credit Facility (limit; maturity)—Up to $9.5M; Feb 28, 2025 Up to $9.5M; Feb 28, 2025
Cash + Restricted Cash ($USD Millions)$15.908 (12/31/23) $15.126 (3/31/24) $15.363 (6/30/24)

Notes: Q4 2023 values shown where disclosed within 2024 filings.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActionChange
Preferred Dividends – Series BQ3 2024 payment (8/20/24)N/A$0.453125 per share declared (record 8/9/24) New/Declared
Preferred Dividends – Series CQ3 2024 payment (8/20/24)N/A$0.40625 per share declared (record 8/9/24) New/Declared
Preferred Stock Repurchase Authorization12 months from 8/8/24NoneUp to $10M authorized for Series B/C repurchases New/Authorized
Revolving Credit AgreementMaturityN/AMatures Feb 28, 2025; extendable by up to two 3‑month periods Confirmed terms
Asset Disposition PlanAs of 6/30/24N/ASouth Philadelphia classified as held for sale New/Plan advanced

No quantitative revenue/EPS guidance was provided; the Q2 8‑K furnished parent WHLR press release and supplemental information, but no forward guidance .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q2 2024)Trend
Occupancy/LeasingQ1: Same-Property NOI +3.3% YoY; occupancy +50 bps; new revolver to fund TIs/LCs Same-Property NOI +7.9% YoY; occupancy +200 bps; renewals +9.25% over prior rates Improving
Interest Expense/FinancingQ1: Interest expense higher on balance/rate and deferred cost amortization Q2: Interest expense up 18.5% YoY on same drivers Headwind persists
Asset DispositionsQ1: South Philadelphia identified as held for sale Q2: Oakland Commons sold ($6.0M); South Philadelphia remains held for sale Recycling progressing
Capital AllocationQ1: Preferred dividends declared for Q2 Q2: Q3 preferred dividends declared; $10M preferred repurchase program authorized Supportive for preferreds
Legal/RegulatoryOngoing preferred stockholder litigation; appeal heard May 9, 2024 Awaiting outcome; no new material updates in Q2 filing Unchanged

Note: No Cedar-specific Q2’24 earnings call transcript was furnished; commentary sourced from 10‑Q and company 8‑Ks .

Management Commentary

  • “Same-Property NOI for the three and six months ended June 30, 2024 increased 7.9% and 5.8%… driven primarily by an increase in average base rent of $0.13 per square foot and an increase in occupancy of 200 basis points.”
  • “The Company is working to increase revenue by improving occupancy, which includes backfilling vacant anchor spaces and replacing defaulted tenants.”
  • “Interest expense, net was higher as a result of… an increase in the overall weighted average principal debt balance… an increase in the overall weighted average interest rate, and… an increase in amortization expense of deferred financing costs.”

Q&A Highlights

  • No Q2 2024 Cedar Realty Trust earnings call transcript was furnished; analysis reflects disclosures in the Q2 10‑Q and related 8‑Ks .

Estimates Context

  • Street consensus estimates (revenue/EPS/EBITDA) for CDR preferred listing were not available via S&P Global at the time of analysis; the company did not provide formal forward guidance in Q2 filings, and the 8‑K furnished parent WHLR materials without consensus metrics .

Key Takeaways for Investors

  • Same-Property NOI acceleration and improving occupancy/lease economics signal fundamental traction; monitor sustainability of +200 bps occupancy and renewal spreads into 2H .
  • Higher interest expense remains the principal earnings headwind amid a largely fixed-rate debt stack; refinancing/maturity management (revolver due Feb 2025) is a key near-term variable .
  • Preferred-holder friendly actions (quarterly dividends and new $10M repurchase authorization) support technicals and may reduce float over the next year if executed .
  • Asset recycling continues (Oakland Commons sale; South Philadelphia held for sale); proceeds should help fund TIs/LCs and reduce reliance on the revolver .
  • Despite near-breakeven GAAP net income, losses to common persist after preferred dividends; FFO/AFFO losses narrowed YoY, but further occupancy/rent gains and interest expense moderation are needed for inflection .
  • No Street consensus or guidance to anchor expectations; focus on quarterly operating KPIs (NOI growth, occupancy, leasing spreads) and capital actions as the primary stock reaction catalysts near term .