Cedar Realty Trust, Inc. (NYSE:CDR) Q3 2017 Earnings Conference Call Transcript
Nov 02, 2017 • 05:00 pm ET
Greetings, and welcome to the Third Quarter 2017 Cedar Realty Trust Earnings Conference Call. As a reminder, this conference is being recorded.
Now I'll turn the call over to Mr. Nicholas Partenza, please proceed.
Good evening, and thank you for joining us for the third quarter 2017 Cedar Realty Trust earnings conference call. Participating in today's call will be Bruce Schanzer, CEO; Robin Zeigler, COO; and Philip Mays, CFO.
(Forward-Looking Cautionary Statements)
During this call, management may refer to certain non-GAAP financial measures, including funds from operations and net operating income. Please see Cedar's earnings press release and supplemental financial information posted on its website for reconciliations of these non-GAAP financial measures with the most directly comparable GAAP financial measures.
With that, I will now turn the call over to Bruce Schanzer.
Thanks, Nick, and thank you all for joining Cedar's third quarter 2017 earnings conference call. Before jumping into my prepared remarks, I would like to acknowledge my senior executive colleagues; Phil Mays, Adina Storch, Mike Winters, Robin Zeigler, Charles Burkert, and Tim Havener, as well as all of my team Cedar colleagues who have committed themselves to everyday excellence.
Approximately six years ago, on our third quarter 2011 earnings call, shortly after Phil and I started at Cedar, we introduced the new Cedar. Since then, we have gone from being the worst performing shopping center REIT to being one of the best performing shopping center REITs, as measured by total shareholder return.
While we are very proud of the track record we have successfully achieved, we embrace that there is more to accomplish as we seek to build a premier retail REIT and drive value creation for all Cedar shareholders.
Over the last six years we have transformed this organization, streamlining a collection of approximately 140 disparate assets into a higher quality and strategically focused portfolio of 60 predominantly grocery anchored shopping centers in the DC to Boston corridor.
The balance sheet we started with six years ago was highly levered and overly encumbered with mortgages. Since that time, we have diligently, systematically and successfully reduced leverage more than 2 turns and unencumbered substantially all of our underlying properties. In addition, we have termed out a majority of our unsecured debt to reach the position we are in today with no maturities until 2021.
In tandem with improving the Company's balance sheet and portfolio, we reduced headcount by approximately 40% while purposefully building a team-Cedar culture based on the values of collegiality, collaboration and everyday excellence. And finally, we have opportunistically raised equity over the past few years in a prudent and sparing manner during receptive market windows.
Today, we are operating from a position of significantly enhanced financial strength and flexibility because of our disciplined approach to capital allocation, asset management and corporate administration. During this time, while improving our portfolio, organization and balance sheet, we also reoriented the Company to focus on pursuing relatively large value-add redevelopments in some of our centers within the high-density