Cedar Realty Trust Inc. and Hersha Hospitality Trust, two companies with operations in the midstate, this week announced their fourth-quarter earnings as well as year-end financial reports.
New York-based Cedar Realty saw its net income fall for the quarter and the year, but Bruce Schanzer, president and CEO, put a positive spin on the news in terms of the future.
"We are pleased to have successfully achieved in late 2013 the objectives set forth in the two-year strategic plan we launched in late 2011 to have a healthier balance sheet and a focused portfolio of grocery-anchored shopping centers straddling the DC to Boston corridor," he said in a news release.
The company reported cash flow for the fourth quarter of $9.2 million, or 13 cents per diluted share, compared to $8.4 million, or 12 cents per diluted share, for the same period in 2012.
Cash flow for the year was $36.4 million, or 50 cents per diluted share, increasing slightly from 2012, which was $35.8 million, or 50 cents per diluted share. The 2012 figure included a favorable benefit of $3.4 million, or 5 cents per diluted share, of termination related income in connection with replacing a dark anchor at the company's Oakland Commons shopping center.
Net income attributable to common shareholders for the fourth quarter was $2.3 million, or 3 cents per diluted share, compared to net income of $22.3 million, or 31 cents per diluted share, for the same period in 2012.
Net income for the quarter included a gain on paying off a debt and related obligations of $9.2 million and impairment charges of $4 million. Net income for the fourth quarter in 2012 included a $30.5 million gain on exiting the Cedar/RioCan joint venture, impairment charges of $6.9 million, gains on sales of real estate of $4.4 million, and preferred stock redemption costs of $4.4 million.
Net loss attributable to common shareholders for the year was $1.1 million, or 3 cents per diluted share, compared to net income of $9.9 million, or 13 cents per diluted share, for the same period in 2012.
Net income for the year included gains of $10.5 million on paying off debt obligations, impairment charges of $2.9 million, preferred stock redemption and early ending of debt costs of $1.7 million, and gains on sales of real estate of $600,000. Net income for the year prior included a gain on exiting Cedar/RioCan of $30.5 million, preferred stock redemption and early debt pay-off costs of $7.6 million, impairment charges of $5.8 million, gains on sales of real estate of $5.7 million, and $1.2 million of employee termination costs.
Cedar Realty shares are traded on the New York Stock Exchange under the ticker symbol CDR.
Hersha Hospitality, a real estate investment trust with offices in Harrisburg, Philadelphia and New York City, reported a good year overall in 2013, but fourth-quarter earnings fell over the previous year, thanks in part to a demand surge caused by Hurricane Sandy.
"As anticipated, the fourth quarter of 2013 was challenging on a year-over-year basis due to difficult comparable performance numbers from a year ago related to the significant demand surge from Hurricane Sandy relief efforts that significantly bolstered the portfolio results in New York and the surrounding markets during the fourth quarter 2012 and one-time events such as the government shutdown in October of 2013," Jay H. Shah, Hersha's CEO, said in a news release.
Net income applicable to common shareholders was $32.8 million, or 16 cents per diluted share, for the year. That compares to net income applicable to common shareholders of $8.4 million, or 4 cents per diluted share, in 2012. The increase in net income reported for the full-year and fourth-quarter 2013 periods was primarily related to a gain on the disposition of 12 non-core hotel properties that closed during the fourth quarter.
Cash flow in 2013 increased by $7.2 million — about 9 percent — to $86.5 million, compared to $79.3 million in 2012. Cash flow per diluted common share and unit of limited partnership interest in Hersha Hospitality Limited Partnership was 41 cents, an increase from cash flow of 40 cents per diluted share reported in 2012.
Cash flow in the fourth quarter declined by $2 million — about 7.5 percent — to $24.6 million, compared to $26.6 million in the fourth quarter 2012. Cash flow per diluted share was 12 cents, a decrease from cash flow of 13 cents per diluted share reported in the same quarter in 2012.
Hersha Hospitality shares are traded on the New York Stock Exchange under the ticker symbol HT.