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PORT WASHINGTON, NY-Cedar Shopping Centers, based here, saw a 92% increase in revenue growth in 2004. The publicly traded REIT reported revenues of $51.1 million, compared with $26.7 million for the previous year. Gross assets increased to $537 million from $350 million, an increase of more than 53%.
"We have a good first full year as a New York Stock Exchange company," said Leo S. Ullman, Cedar's CEO, during a conference call. "We were able effectively to accomplish and manage very considerable growth while introducing new property reporting systems and internal control mechanisms, meeting Sarbanes-Oxley and New York Stock Exchange requirements."
Ullman said the company's acquisition of an Ohio-based portfolio of 27 drug-store anchored centers will close in 30 to 40 days. This acquisition represents the company's first venture into the state. Ullman said the seller pursued Cedar. "They said they liked what we were doing." The firm has no plans to open an office in the state.
Funds From Operations increased to $15.6 million or $0.91 per share/Operating Partnership Unit from a negative of $20.6 million or $5.79 per share/OP Unit for 2003. The 2003 results reflected one-time transaction costs associated with the company's public offering in October of that year. Cedar raised approximately $162.9 million in that offering. The company raised an additional $38.2 million through a common stock offering in December 2004 and approximately $56.7 million in a preferred stock offering in July 2004.
For the fourth quarter of 2004, Cedar had total revenues ofapproximately $14.7 million, compared to approximately $8.6 millionfor the fourth quarter of 2003. The company completed the purchase of the Kenley Village and St. James Square shopping centers in Hagerstown, MD at a purchase price of approximately $8.3 million, including closing costs. The purchase was funded from the firm's secured revolving credit facility.
Tom O'Keeffe, the company's CFO, said the company's 2005 FFO guidance reflects, among other things, certain pending acquisitions and the projected completion in the second half of the year of a new development property in Hershey, PA as well as the second phase of a redevelopment at the Camp Hill Mall, in Camp Hill, PA. Cedar owns and operates 33 primarily supermarket-anchored shopping centers with approximately five million sf of gross leasable area, located mainly in Pennsylvania, New Jersey, Massachusetts, Maryland and Connecticut.
Ullman said the company's projections for the year are on target. "We contemplate going beyond $90 million, but not too much."
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