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CEDAR REALTY TRUST, INC. (CDR-PC)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue fell 13.4% year over year to $7.46M as portfolio dispositions reduced base rent, but Same-Property NOI rose 11.4% on higher occupancy and positive renewal spreads .
  • Net loss was $0.13M, while net income attributable to common shareholders was $1.61M ($0.12 EPS), aided by a $3.19M deemed contribution from preferred stock repurchases; operating income was $2.11M .
  • Leasing activity strengthened: 77.4K sq ft of renewals with a 10.6% rent uplift and 16.7K sq ft of new leases; occupancy ended at 86.2% vs 85.4% last year, average base rent was $10.79/sq ft .
  • Cedar repurchased 592,372 Series B and 1,301,159 Series C preferred shares YTD (aggregate $31.8M), reducing future dividends; dividends per share for Series B and C were again declared at $0.453125 and $0.40625, respectively, on July 28, 2025 .
  • Street consensus estimates were not available for Cedar this quarter; WHLR (parent) reported consolidated revenue of $26.10M, but consensus coverage was limited, constraining beat/miss analysis (S&P Global consensus unavailable for CDR-PC).

What Went Well and What Went Wrong

What Went Well

  • Same-Property NOI increased 11.4% YoY (to $4.75M) driven by occupancy gains and positive renewal spreads; management emphasized “an increase in occupancy and positive rent spreads on renewals” .
  • Active capital allocation: Cedar repurchased a total of ~1.89M preferred shares YTD, citing the opportunity to buy back at discounts to liquidation value to “enhance financial stability and optimize capital allocation” .
  • Leasing execution improved: Renewals of 77.4K sq ft at a 10.6% uplift and new leases at $21.89/sq ft demonstrate pricing power in select assets .

What Went Wrong

  • Revenue declined 13.4% YoY to $7.46M due to asset sales in 2024–2025, despite same-center rent gains; corporate G&A also rose vs prior year .
  • A $0.72M loss on loan prepayment tied to the October 2022 term loan weighed on results year-to-date .
  • Leased rate fell vs prior year (87.0% vs 89.5%), and new lease spreads were negative (-2.4%), highlighting mix and anchor backfill challenges in parts of the portfolio .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$8.61 $7.42 $7.46
Operating Income ($USD Millions)$2.33 $4.15 $2.11
Net (Loss) Income ($USD Millions)$0.02 $1.45 $(0.13)
Net Income Attributable to Common Shareholders ($USD Millions)$(2.67) $9.83 $1.61
EPS ($USD)$(0.19) $0.72 $0.12
Portfolio KPIsQ2 2024Q1 2025Q2 2025
Occupancy (%)85.4% 86.7% 86.2%
Leased (%)89.5% 86.9% 87.0%
Avg Base Rent ($/sq ft)$10.90 $10.69 $10.79
Same-Property NOI ($USD Millions)$4.26 $4.07 $4.75
Leasing MetricsQ2 2024Q1 2025Q2 2025
Renewals (sq ft)38,293 74,390 77,434
Renewal Rent Change (%)9.25% 8.28% 10.57%
New Leases (sq ft)34,776 — 16,702
New Lease Rate ($/sq ft)$11.00 — $21.89
New Rent Spread (%)(3.72%) — (2.40%)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Series B Preferred Dividend per ShareQ3 2025$0.453125 (Declared Apr 29, 2025) $0.453125 (Declared Jul 28, 2025) Maintained
Series C Preferred Dividend per ShareQ3 2025$0.406250 (Declared Apr 29, 2025) $0.406250 (Declared Jul 28, 2025) Maintained
Revenue/Margins/OpEx/TaxFY/QtrNone providedNone providedN/A

Earnings Call Themes & Trends

(No Q2 2025 earnings call transcript was available.)

TopicPrevious Mentions (Q2 2024, Q1 2025)Current Period (Q2 2025)Trend
Dispositions and capital allocation2024 disposal of Oakland Commons; focus on optimizing capital structure 2025 disposals (Webster Commons, Oregon Ave) and continued preferred repurchases Ongoing portfolio pruning; redeploy into shareholder accretive actions
Occupancy and leasingSame-property occupancy 86.0%; renewal uplifts 9.25% Occupancy 86.2%; renewal uplifts 10.6%; new leases at $21.89/sq ft Slight occupancy improvement; stronger renewal pricing
Financing and debtRevolving facility in 2024; term loan structure $10.0M KeyBank bridge loan (SOFR+1.30%); $9.1M paydown of Oct 2022 term loan Bridge adds flexibility; targeted paydowns reduce collateral
Preferred equity strategyNo buybacks in Q2 2024; dividends continued $31.8M YTD buybacks of Series B/C; dividends declared again Aggressive repurchases lower dividend overhang
Legal/regulatoryPreferred holder litigation dismissed (Kim); appeal affirmed New Aquino Action vs former directors; motion to dismiss filed Residual legal uncertainty persists

Management Commentary

  • “The Company intends to continue repurchasing its Preferred Stock as both series are currently trading at a discount to their liquidation value, presenting a strategic opportunity to buy back shares at favorable prices… enhance its financial stability and optimize its capital allocation.”
  • “Same-Property NOI for the three and six months ended June 30, 2025 increased 11.4% and 6.6%, respectively, compared to the same periods in the prior year. The increases… were primarily due to an increase in occupancy and positive rent spreads on renewals.”
  • “On April 4, 2025, the Operating Partnership entered into a bridge loan agreement… $10.0 million… term SOFR rate plus… 1.30%.”
  • “Upon the 2025 disposition of Webster Commons, the Company paid down approximately $9.1 million… and paid a $0.5 million loan prepayment premium.”

Q&A Highlights

No Q2 2025 earnings call transcript was available for Cedar or WHLR parent; therefore, Q&A highlights and clarifications are not available this quarter.

Estimates Context

  • Wall Street consensus estimates via S&P Global were unavailable for Cedar (ticker mapping not present), and WHLR parent had limited consensus metadata; as a result, we cannot provide beat/miss analysis versus Street expectations (S&P Global consensus unavailable for CDR-PC).
  • Reported revenue for WHLR consolidated was $26.10M in Q2 2025; however, no consensus comparison is available (S&P Global consensus unavailable for CDR-PC).

Key Takeaways for Investors

  • Same-property fundamentals improved (NOI +11.4% YoY; occupancy up), indicating underlying demand resilience despite portfolio-rightsizing drag on headline revenue .
  • Preferred stock repurchases (Series B/C) meaningfully reduce forward dividend obligations and strengthen Cedar’s equity profile, supporting value for remaining preferred holders .
  • Liquidity actions (KeyBank bridge loan, targeted paydowns) balance flexibility with cost; watch prepayment/transaction costs (e.g., $0.52M premium) and SOFR rate exposure .
  • Leasing execution is a bright spot: double-digit renewal uplifts and premium new lease rates at select assets, albeit with negative new rent spread reflecting tenant mix dynamics .
  • Legal overhang (Aquino Action vs former directors) is indemnified but remains a headline risk until dismissal/resolution .
  • Dividends for Cedar Series B and C were reaffirmed; continued declarations and buybacks are key catalysts for preferred pricing and investor returns .
  • With Street coverage thin, focus on operational KPIs (occupancy, lease spreads, ABR) and capital allocation decisions as primary drivers of valuation and preferred pricing trajectory .