Cedar Income Fund, Ltd. - Q1 1998 10-Q Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 1998, for Cedar Income Fund, Ltd. (also referenced as Cedar Realty Trust, Inc. in metadata). The registrant is a real estate investment company with a portfolio of commercial properties, including Southpoint Parkway Center, Corporate Center East, Broadbent Business Center, and Germantown Square. As of May 13, 1998, there were 2,245,411 shares of common stock outstanding.
Key Financial Metrics
| Metric | Q1 1998 | Q1 1997 |
|---|---|---|
| Total Revenue | $670,324 | $560,915 |
| Net Earnings | $175,726 | $124,207 |
| Earnings Per Share (Basic/Diluted) | $0.08 | $0.06 |
| Dividends Paid | $224,541 ($0.10/share) | $224,541 ($0.10/share) |
| Net Cash from Operating Activities | $119,759 | $224,720 |
| Cash and Cash Equivalents (Ending) | $1,861,886 | $529,293 |
| Total Assets | $16,806,251 | $15,941,683 |
| Total Liabilities | $2,627,964 | $1,714,581 |
| Shareholders' Equity | $14,178,287 | $14,227,102 |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 19.5% year-over-year, driven primarily by an 18% increase in rental income ($639,038 vs. $539,619).
- Occupancy Improvements: Overall portfolio occupancy reached 98%. Specific gains included a $57,000 increase at Southpoint Parkway Center (additional 17,116 sq. ft. leased) and a $40,000 increase at Corporate Center East (100% occupancy achieved).
- Expense Management: Property expenses excluding depreciation decreased as a percentage of rental income from 43% in 1997 to 35% in 1998. Wages and salaries dropped by $5,000 due to staff reductions at Broadbent.
- Administrative Costs: Other administrative expenses rose by $49,000, attributed to legal fees and mailing costs associated with a tender offer for Cedar shares. Directors' fees increased by $9,000 due to higher insurance premiums.
- Asset Composition: The mortgage loan receivable balance was fully repurchased by Life Investors Insurance Company of America in March 1998. Proceeds were invested in a money market fund, significantly boosting cash equivalents.
Outlook, Risks, and Management Commentary
- Liquidity: Management considers current liquidity, represented by cash equivalents and operating cash flow, sufficient to meet current obligations.
- Dividend Policy: The Board declared a quarterly dividend of $0.10 per share, payable May 20, 1998. Future dividends will depend on leasing prospects, operating results, and financial condition.
- Capital Resources: The company maintains its real estate in good condition with adequate insurance. The repurchase of the mortgage receivable removed a specific asset class from the balance sheet, converting it to liquid cash.
- Risks: The filing notes that interim reports should be read in conjunction with the 1997 Annual Report. No specific new material risks were detailed in this quarter's text beyond standard operational dependencies on occupancy and leasing.
Investor Verification Checklist
- Verify the impact of the tender offer completion on future administrative expenses and share count.
- Confirm the sustainability of the 98% occupancy rate, particularly the new leases at Southpoint Parkway Center.
- Review the 1997 Annual Report (Form 10-K) for full context on the mortgage receivable repurchase agreement with Life Investors Insurance Company.
- Monitor the company's ability to maintain dividend payouts given that dividends ($224,541) exceeded net earnings ($175,726) for the quarter.