Cedar Realty Trust Reports Slight Revenue Decline but Significant Net Income Increase for Fiscal Year 2024

Cedar Realty Trust, Inc. reported a slight decline in total revenues for the fiscal year ending December 31, 2024, with figures reaching $34.5 million, down from $34.6 million in 2023. The company's net income, however, saw a significant increase, rising to $4.5 million compared to $2.0 million in the previous year. This improvement in profitability was attributed to a notable gain on sales of properties, which amounted to $4.5 million, up from $2.7 million in 2023. The company also recorded a decrease in depreciation and amortization expenses, which fell by 20.5% to $8.7 million, contributing to the overall increase in net income.

In terms of operational performance, Cedar Realty Trust's portfolio consisted of 16 properties totaling 2.4 million square feet of gross leasable area, with an occupancy rate of 86.7% and a leasing rate of 88.9% as of December 31, 2024. The company engaged in strategic asset sales during the year, including the sale of the South Philadelphia retail center and Kings Plaza, which generated significant proceeds. Additionally, the company recorded impairment charges of approximately $1.1 million related to the Oregon Avenue property, reflecting ongoing evaluations of asset values.

Cedar Realty Trust has also been active in managing its capital structure, with a focus on repurchasing its preferred stock. In August 2024, the Board authorized a repurchase program for up to $10 million of its preferred stock, and subsequent tender offers were executed in September and December 2024, resulting in the repurchase of over 1.3 million shares. The company aims to enhance shareholder value by reducing the number of shareholders eligible for dividend payments, particularly as it navigates the financial impacts of recent property sales.

Looking ahead, Cedar Realty Trust plans to continue focusing on necessity-based retail properties, particularly grocery-anchored shopping centers, which are expected to provide stable revenue streams. The company is also working to improve occupancy rates by backfilling vacant spaces and replacing defaulted tenants. As of December 31, 2024, the company reported $30.6 million in cash and cash equivalents, positioning it well to meet its liquidity needs and capitalize on future investment opportunities. The management remains optimistic about the company's ability to navigate market conditions and enhance its operational performance in the coming year.