PORT WASHINGTON, N.Y., Jan. 29 /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. today announced that its Board of Directors has approved the payment of a dividend of $0.1125 per share on the Company's Common Stock, payable on February 20, 2009 to shareholders of record as of the close of business on February 10, 2009. This equates to an annualized yield of 7.1% based on the closing price of Cedar's stock on January 29, 2009.
Payments at the same rate and at the same time will be made to holders of units of limited partnership interests in Cedar Shopping Centers Partnership L.P., the Operating Partnership of which the Company is the sole general partner ("OP Units").
The new dividend rate on common shares will generate approximately $21 million in retained cash flow for the Company in 2009.
"The decision by our Board of Directors to reduce the dividend at this time is in response to the current state of the economy, the difficult retail environment and the constrained capital markets. Given the challenges facing tenants, and the potential for impact on leasing and operations, we believe it to be prudent to preserve liquidity in order to maintain the strength of our balance sheet," said Leo S. Ullman, Cedar's CEO.
The Company also announced that the Board has approved payment of a dividend of $0.5546875 per share on the Company's 8 7/8% Series "A" Cumulative Redeemable Preferred Stock, payable on February 20, 2009 to shareholders of record as of the close of business on February 10, 2009.
About Cedar Shopping Centers
Cedar Shopping Centers, Inc. is a fully-integrated real estate investment trust which focuses primarily on ownership, operation, development and redevelopment of supermarket-anchored shopping centers in nine mid-Atlantic and New England states. The Company has realized significant growth in assets and has completed a number of developments and redevelopments of retail properties since its public offering in October 2003. The Company presently owns and operates approximately 12.1 million square feet of gross leasable area at 121 shopping center properties, of which approximately 75% are anchored by supermarkets and drug stores with average remaining lease terms of approximately 11 years. The Company also owns a substantial pipeline of development properties as well as approximately 406 acres in primarily unimproved development parcels.
Forward-Looking Statements
Statements made or incorporated by reference in this press release include certain "forward-looking statements". Such forward-looking statements include, without limitation, statements containing the words "anticipates", "believes", "expects", "intends", "future", and words of similar import which express the Company's beliefs, expectations or intentions regarding future performance or future events or trends. While forward-looking statements reflect good faith beliefs, expectations or intentions, they are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements as a result of factors outside of the Company's control. Certain factors that might cause such differences include, but are not limited to, the following: real estate investment considerations, such as the effect of economic and other conditions in general and in the Company's market areas in particular; the financial viability of the Company's tenants; the continuing availability of suitable acquisitions, and development and redevelopment opportunities, on favorable terms; the availability of equity and debt capital (including the availability of construction financing) in the public and private markets; changes in interest rates; the fact that returns from development, redevelopment and acquisition activities may not be at expected levels or at expected times; inherent risks in ongoing development and redevelopment projects including, but not limited to, cost overruns resulting from weather delays, changes in the nature and scope of development and redevelopment efforts, changes in governmental regulations related thereto, and market factors involved in the pricing of material and labor; the need to renew leases or re-let space upon the expiration of current leases; and the financial flexibility to repay or refinance debt obligations when due.
