CORPORATE PRESENTATION May 2019 CEDAR REALTY TRUST Cedar Realty - - PowerPoint PPT Presentation
CORPORATE PRESENTATION May 2019 CEDAR REALTY TRUST Cedar Realty Trust Inc. is a real estate investment trust focused on ownership, operation and redevelopment of shopping centers, predominantly with a grocery component, in high-density, urban
May 2019
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Cedar Realty Trust Inc. is a real estate investment trust focused on ownership,
centers, predominantly with a grocery component, in high-density, urban markets from Washington, D.C. to Boston. We are a high-performing REIT with the adaptability of boutique blue chip firm.
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Collaboration & Collegiality Everyday Excellence Disciplined Strategic Focus Alignment with Our Shareholders Risk Management
There is a strong connection between our values, our goals and our corporate strategy. Our values are founded in a culture of collaboration and collegiality, a commitment to everyday excellence and disciplined capital allocation. These values contribute to our record of impressive results and inform our audacious goals.
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Our goals are to be a best-in-class shopping center REIT and a best-in- class employer, not simply the biggest, and we are committed to achieving the highest results, both for
communities we serve.
REDEVELOP PURSUE REDEVELOPMENT AND EXPANSION OF CENTERS IN HIGH-POPULATION DENSITY URBAN MARKETS
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DC TO BOSTON REGIONAL EXPERTISE WITH FOCUS ON HIGH POPULATION DENSITY URBAN MARKETS CAPITAL ALLOCATION HIGHLY ANALYTICAL APPROACH TO CAPITAL ALLOCATION FOCUSED ON COST OF CAPITAL AND RISK ADJUSTED RETURNS DIVEST CENTERS IN LOW-POPULATION DENSITY MARKETS, INVEST PROCEEDS IN HIGH- POPULATION DENSITY URBAN MARKETS CAPITAL MIGRATION
in mid-2011
center REIT with disparate portfolio
turn around the Company
grocery-anchored shopping centers in D.C. to Boston corridor
structure while lowering leverage
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began implementing next strategic phase
population density urban markets within D.C. to Boston footprint while divesting lower population density assets
mixed-use redevelopment projects
in 2019
begin in late 2020
urban mixed use assets with retail components in addition to our core grocery-anchored assets
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Trimmed portfolio and improved asset quality
Portfolio Size (1) ABR PSF (1) Population Density (1)
(1) Based on prorata ownership
$11.26 $13.80 $16.59
2Q11 (Prior Management) 1Q19 (Current Management) 1Q19 (Top 2 Quartiles)
12mm SF 9mm SF 5mm SF
2Q11 (Prior Management) 1Q19 (Current Management) 1Q19 (Top 2 Quartiles)
67,697 104,507 154,782
2Q11 (Prior Management) 1Q19 (Current Management) 1Q19 (Top 2 Quartiles)
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Source: Citigroup Research – Citi’s New Year’s 2019 REITSolutions, December 27, 2018
Issue equity when there is an accretive use of proceeds and stock is trading above NAV Repurchase shares when stock is trading at a discount to NAV Acquire assets when it is accretive and attractive Sell assets when it makes sense Redevelop assets when there is a solid risk-adjusted return
1/6/2015 CDR raises $42 million of common equity at $7.30 per share. (~5% premium to Wall St. NAV) 12/18/2018 CDR announces a $30 million share repurchase program (~50% discount to Wall St. NAV)
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____________________ Source: SNL as of March 31, 2019.
7/26/2016 CDR raises $45 million of common equity at $7.86 per share. (~4% premium to Wall St. NAV) 40% 50% 60% 70% 80% 90% 100% 110% 1/1/2014 8/28/2014 4/24/2015 12/20/2015 8/15/2016 4/11/2017 12/7/2017 8/3/2018 3/31/2019 100% Line
CDR: 57%
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Since 2011, Cedar has systematically divested non- core assets in low-population density markets and migrated capital into superior assets in higher population density markets. At first, the capital from these sales was used to reduce debt. Subsequently, the proceeds have been used to purchase assets in higher population density markets, to fund redevelopment and value-add investments in these high-population density markets, and recently, to fund highly accretive stock repurchases.
PORTFOLIO QUARTILES – AS OF MARCH 31, 2019
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~80%
20%
Weighted Average
3rd Quartile
3-Mile HH Income
4th Quartile $67,033 Top Quartile
Households / sq.mi. Average Base Rent
2nd Quartile
% of Cash NOI 3-Mile Population
14 Assets 2.3M SF 14 Assets 2.6M SF 14 Assets 1.9M SF 14 Assets 1.8M SF 35% 35% 19% 11% $18.57 PSF $14.61 PSF $12.02 PSF $8.10 PSF 3,356 1,247 627 610 222,914 86,650 45,170 41,178 $69,403 $78,391 $63,111 Cedar is selling assets in the bottom quartiles
Cedar is using the proceeds from lower quartile asset sales to invest in higher population density markets through strategic redevelopments and acquisitions
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Acquisitions Cedar has acquired centers with an average of ~255,000 people within 3-miles and an average ABR psf of $17.72 Dispositions Cedar has divested centers with an average of ~33,000 people within 3-miles and an average ABR psf of $11.77
3-Mile Asset Name / Market ABR Population HH Income 2014 - 2019 Acquisitions
Senator Square - Washington, D.C. $22.01 238,552 $68,648 Christina Crossing - Wilmington, DE $17.46 112,056 $49,728 The Shops at Bloomfield Station- New York Metro $18.74 315,828 $62,620 Shoppes at Arts District - Washington, D.C. $34.86 179,033 $66,519 East River Park - Washington, D.C. $20.99 231,299 $67,364 Lawndale Plaza - Philadelphia, PA $18.03 365,005 $44,848 Quartermaster Plaza - Philadelphia, PA $14.47 342,640 $51,478
2014 - 2019 Dispositions
Fairview Plaza $12.45 44,195 $48,919 Townfair Center $8.83 26,507 $37,979 Lake Raystown Plaza $12.38 12,950 $37,075 Carbondale Plaza $7.16 13,266 $33,606 Virginia Little Creek $12.07 119,352 $40,775 Annie Land Plaza $9.50 1,459 $49,360 Smithfield Plaza $9.40 11,955 $70,347
$11.73 27,029 $48,706 Huntingdon Plaza $4.50 13,122 $37,160 Circle Plaza $2.74 18,373 $39,930 Kenley Village $9.00 56,180 $41,212 Liberty Marketplace $18.05 14,285 $40,342 Upland Square $18.29 46,758 $59,387 Fredricksburg Way $0.00 23,361 $89,017 Mechanicsburg Center $22.57 52,388 $69,656 West Bridgewater Plaza $4.92 59,189 $59,204 Maxatawny Marketplace $11.85 12,356 $77,789
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Cap rates have held relatively stable for grocery-anchored shopping centers in higher and lower population density markets in the Northeast
Lower Density
income of $64,054 Higher Density
income of $70,275
Note: See Appendix for constituent transactions
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South Quarter Crossing (Quartermaster Plaza and South Philadelphia) 3-Mile Pop: 344,634 Lawndale Plaza 3-Mile Pop: 369,938 Fishtown Crossing (F/K/A Port Richmond Village) 3-Mile Pop: 364,105 Riverview Plaza 3-Mile Pop: 348,923
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East River Park and Senator Square 3-Mile Pop: 233,886 Shoppes at Arts District 3-Mile Pop: 177,355
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Carman’s Plaza 3-Mile Pop: 159,471 The Shops at Bloomfield Station 3-Mile Pop: 323,176
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The Shops at Suffolk Downs 3-Mile Pop: 188,558
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Our strategy for accomplishing our goals includes redevelopment and value-add investments into our centers, especially those in high- density urban markets. In addition, we lease and merchandise our shopping centers to address evolving retail and demographic trends. Through this process of investment and a continual focus on improvement, we advance the urban communities we serve while generating attractive long-term returns on capital. We spark profound transformations within these communities through the improvements we make to our shopping centers. We’re committed to being a valuable corporate citizen growing the per- share value of Cedar while serving and improving our communities. Investing capital into high-density urban markets allows us to do well while doing good since we generate attractive investment returns while also increasing access to fresh food and improving the amenities of
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South Quarter Crossing is a proposed 1.2 million square foot mixed-use redevelopment serving as the cornerstone for Philadelphia’s new South Quarter neighborhood, and is within a trade area boasting a daytime population of over 800,000. The combination of the already successful South Philadelphia Shopping Center and Quartermaster Plaza, South Quarter Crossing’s uniquely convenient location, with close proximity to multiple highways and situated between a number of thriving and expanding employment hubs in Philadelphia, offers a compelling opportunity for prospective tenants through anchor, junior anchor, pad and shop lease offerings. South Quarter Crossing is planned to feature a combination of renowned national and regional anchors – including a new prototypical LA Fitness, and a renovated ShopRite, along with top-performing local merchants and
poised to make an unparalleled impact on the city of Philadelphia and stimulate the exciting evolution of this growing South Philadelphia neighborhood.
Key Info:
Oregon Ave. and 23rd St. (Quartermaster Plaza), Philadelphia, PA
Demographics 1 Mile 3 Miles 5 Miles Population 47,682 344,634 755,296 Households 19,633 155,468 320,709 Median HH Income ($) $64,584 $78,774 $66,927
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pressure from Center City and job growth at Navy Yard.”
changing character of the neighborhood and growth dynamics.”
an underserved market audience of renters who are priced out of new construction Center City apartments but who desire a quality mixed-use environment.”
Source: RCLCO Report dated January 18, 2017
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Riverview Plaza sits along three city blocks just south of Washington Avenue on Columbus
redevelopment will focus on the southern two blocks of the center, and is expected to include approximately 130,000 square feet of new entertainment, shops and restaurants as well as 265 multifamily units. The redevelopment of Riverview Plaza will increase pedestrian traffic and enhance the entertainment space in this Philadelphia neighborhood to offer best-in-class entertainment and shopping experiences not currently being met in the market. This property offers a prime location for prospective merchants on an established retail corridor — directly at the I-95 ramp — with visibility from the highway and arterial roads.
Key Info:
Demographics 1 Mile 3 Miles 5 Miles Population 50,356 348,923 823,819 Households 23,360 162,472 343,329 Median HH Income ($) $98,785 $84,052 $66,590
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redevelopment along the Delaware waterfront.”
recent years from both the private sector and public sector.”
in waterfront parks, programming, and trials that will soon connect all the way from Penn’s Landing to Oregon Avenue.”
Source: RCLCO Report dated January 18, 2017
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Strategically situated in northeast Washington, D.C.’s rapidly emerging Ward 7 and as the primary grocery- anchored shopping center in the region, East River Park is a major focus for the neighborhood’s redevelopment. Rezoned for mixed-use in 2016, the proposed center will feature 225,000 square feet of retail and office space and 365 multifamily residential units. Redevelopment of the property will allow for best-in-class national and local retail tenants and provide an unparalleled shopping destination, including a new grocery store and national junior anchors not currently available east of the Anacostia River. East River Park is a catalyst for progressive growth and development as this key Washington, D.C. region continues to evolve, and the property enhances its role as a valuable resource to the surrounding community. With the recent acquisition of Senator Square, a 62,000 square foot shopping center across Minnesota Avenue, Cedar anticipates adding an additional 88,000 square feet
Key Info:
Demographics 1 Mile 3 Miles 5 Miles Population 32,922 233,886 647,942 Households 13,410 93,829 261,462 Median HH Income ($) $54,697 $89,715 $94,598
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downtown core.”
due to its proximity and accessibility to downtown D.C. and the “emerging” neighborhoods a short distance to the west.”
existing retail along with curated tenanting of new space is key to creating an attractive sense of place.”
Source: RCLCO Report dated January 18, 2017
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The Port Richmond Village Shopping Center has been a community staple for northeast Philadelphia’s thriving Fishtown neighborhood, which has become “the” destination for young professionals looking to stay in the city. Fishtown Crossing is the reimagination of Port Richmond Village Shopping Center and will transform obsolete small-shops into upgraded pads with better visibility on the highly trafficked Aramingo
complete rebranding in conjunction with a façade upgrade, and features a unique craft beer bottle shop with a communal area for consumers to enjoy
Offering numerous amenities for the area’s largest audiences, Fishtown Crossing is ideally situated directly off I-95 and is easily accessible for shoppers.
Key Info:
Demographics 1 Mile 3 Miles 5 Miles Population 40,211 364,105 981,517 Households 16,642 142,074 394,968 Median HH Income ($) $67,044 $60,426 $63,034
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FISHTOWN CROSSING
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For the 3 Months ended 3/31/2019 Supporting Document
Property Operating Income $23,706,000 Supplemental Filing - Statement of Operations Less: Straight-line and amortization of lease intangibles ($815,000) Supplemental Filing - Supporting Schedules Quarterly Cash NOI $22,891,000 Less: NOI for property sold ($67,000) Annualized Cash NOI $91,296,000 Normalized for Completed Leasing $1,731,000 Management Computation Total Annualized Cash NOI $93,027,000 Debt $630,117,000 Supplemental Filing - Balance Sheet Net Working Capital and CIP ($13,126,000) Supplemental Filing - Balance Sheet, Supporting Schedules Preferred Stock at Liquidation Value $161,240,000 Form 10-Q - Balance Sheet Net Debt and Preferred Stock $778,231,000 Common Shares and OP Units 85,590,700 Form 10-Q - Statement of Equity, Note 1, Note 9
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89,590,700
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Q1 2019
the quarter
schedule thereafter(1)
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(1) Revolving Credit Facility is subject to a 1-year extension at the Company’s option $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 2019 2020 2021 2022 2023 2024 2025 2026 Thereafter Secured Debt Capital Lease Obligation Term Loans Revolving Credit Facility (1)
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Note: Comparables provided by various third party brokers * Denotes a recent Cedar transaction
Primary Market Comparables Secondary Market Comparables Property Name City State Property Name City State Property Name City State 1365 Post Road East Westport CT Ashland Hanover Shopping Center Ashland VA Liberty Marketplace
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Dubois PA 2819 JFK Boulevard North Bergen NJ Bethlehem Square Bethlehem PA MacArthur Commons Allentown PA 400 Mill Creek Secaucus NJ Brandywine Crossing Brandywine MD Madiera Plaza Reading PA 50 Race Track Road East Brunswick NJ Carbondale Plaza
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Carbondale PA Manor Shopping Center Lancaster PA Bakers Centre Philadelphia PA Carlisle Crossing Carlisle PA Maple Tree Pace Williston VT Blue Mountain Commons Harrisburg PA Center at Innovation Manassas VA Market at Opitz Crossing Woodbridge VA Brick Church Shopping Mall East Orange NJ Century III Plaza West Mifflin PA Maxatawny Marketplace
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Kutztown PA Carlisle Marketplace Carlisle PA Chambersburg Crossing Chambersburg PA Midway Shopping Center Wyoming PA Centerton Square Mount Laurel NJ Cherry Square Northampton PA Montville Commons Uncasville CT Cherry Valley Shopping Plaza West Hempstead NY Chesterfield Crossing Chesterfield VA Mount Sinai Shopping Center Mount Sinai NY Clipper Mill Baltimore MD Cleona Square Shopping Center Cleona PA North East Station North East MD Dunkirk Gateway Dunkirk MD Clinton Commons Clinton CT North End Shopping Center Pottstown PA East River Park
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Washington DC Clinton Plaza Clinton CT Perry Hall Centre / Perry Hall Square Perry Hall MD Enterprise Plaza Lanham MD Coleman Marketplace Danville VA Pleasant Valley Market Place Winchester VA Glenwood Village
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Bloomfield NJ Columbus Plaza New Britain CT Quakertown Shopping Center Quakertown PA Highlands Plaza Easton MA Culpeper Colonnade Culpeper VA Richland Marketplace Lehigh Valley PA Kearny Shopping Center Kearny NJ Cypress Point Shopping Center Virginia Beach VA Rising Sun Towne Centre Rising Sun MD King Farm Village Center Rockville MD Derry Meadows Shoppes Derry NH Shaw's Plaza Gilford NH Lawndale Plaza
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Philadelphia PA Dillsburg Shopping Center Dillsburg PA Shoal Creek Center Cambridge MD Mill Creek at Harmon Meadow Secaucus NJ Durgin Square Portsmouth NH Silver Spring Square Mechanicsburg PA Mill Creek at Harmon Meadow Secaucus NJ Fairhaven Plaza Fairhaven MA Skyline Village Harrisonburg VA Newfield Green Shopping Center Stamford CT Festival at Manassas Manassas VA South Cape Village Mashpee MA One and Olney Square Philadelphia PA Five Town Plaza Springfield MA Spotsylvania Crossing Fredericksburg VA Paramus Junction Paramus NJ Forks Town Center Easton PA Stop & Shop Plaza Piscataway NJ Pheasant Run Plaza Warren NJ Fortuna Center Plaza Dumfries VA The Center at Hobbs Brook Sturbridge MA Shoppes at Arts District
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Hyattsville MD Gettysburg Marketplace Gettysburg PA The Marketplace at Potomac Towne Center Ranson WV Shops at Schmidts Philadelphia PA Gilbertsville Shopping Center Gilbertsville PA The Shoppes at South Hills Poughkeepsie NY Silver Sands Plaza Milford CT Gloucester Town Center Sicklerville NJ The Village of Martinsville Martinsville VA Southampton Shopping Center Southampton PA Harbor Village Townsend MA Town Square Plaza Pottstown PA Sunset Plaza West Babylon NY Haymarket Village Center Haymarket VA Townfair Center
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Indiana PA Takoma Langley Crossroads Takoma Park MD Hershey Square Shopping Center Hummelstown PA Townline Square Meriden CT The Shoppes at English Village North Wales PA Holliday Towne Center Duncansville PA Waterbury Plaza Waterbury CT Webster Square Marshfield MA Hood Commons Derry NH West Valley Marketplace Allentown PA Westpark Shopping Center Glen Allen VA Hyde Park Station Essex MD Williamsburg Shopping Center Williamsburg VA Wonderland Marketplace Revere MA Laburnum Square Shopping Henrico VA Willimantic Plaza Willimantic CT Worcester Crossing Worcester MA Lake Raystown
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Huntingdon PA Wilton Square Saratoga Springs NY Largo Town Center Shopping Center Upper Marlboro MD
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Statements made in this presentation that are not strictly historical may be deemed to be "forward-looking" statements within the meaning of the federal securities laws. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, assumptions and other factors, many
difficult to forecast, that could cause actual results to differ materially from those set forth in
implied by such forward-looking statements. Factors which could cause actual results to differ materially from current expectations include, among others: adverse general economic conditions in the United States and uncertainty in the credit and retail markets; financing risks, such as the inability to
space generally, including reductions in consumer spending, variability in retailer demand for leased space, tenant bankruptcies, adverse impact of internet sales demand, ongoing consolidation in the retail sector and changes in economic conditions and consumer confidence; risks endemic to real estate and the real estate industry generally; the impact of the Company's level of indebtedness on
anticipated returns from its redevelopment activities. These risks and uncertainties are described in further detail from time to time in the Company’s SEC filings, and specifically the Company’s most recently filed reports on Forms 10-K and 10-
to update any of the foregoing or any other forward-looking statements as a result of new information or new or future developments, except as otherwise required by law. This presentation references certain non-GAAP financial measures. More information regarding these non-GAAP financial measures can be found in the Company’s SEC filings.
Franklin Village Plaza, Franklin, Massachusetts