Cedar Realty Trust Reports 15.4% Revenue Decline but Significant Net Income Increase in Q1 2025

Cedar Realty Trust, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenues of $7.415 million, down 15.4% from $8.765 million in the same period last year. The decrease in revenue was primarily attributed to a reduction in rental revenues and expense recoveries, which fell by $1.56 million due to the sale of properties in 2024 and 2025. Despite the revenue drop, the company achieved a net income of $1.445 million, a significant increase from $323,000 in the prior year, largely due to a gain of $2.422 million from property sales.

In terms of operational metrics, Cedar Realty Trust's property operating expenses decreased by 18.7% to $3.059 million, reflecting cost reductions associated with the properties sold. The company reported an operating income of $4.149 million, up from $2.5 million a year earlier. The improved profitability was also supported by lower interest expenses, which decreased to $1.986 million from $2.177 million, and a loss on loan prepayment of $718,000 related to the October 2022 Term Loan.

Strategically, Cedar Realty Trust has been active in managing its portfolio, having sold two properties during the quarter. The company continues to focus on grocery-anchored shopping centers, which it believes will provide stable revenue streams. As of March 31, 2025, the company owned 14 properties, and its same-property net operating income increased by 1.6% year-over-year, indicating a slight improvement in operational efficiency. The company also reported a same-property occupancy rate of 86.7%, up from 84.3% a year earlier.

Cedar Realty Trust has been engaged in a series of preferred stock repurchases, having repurchased $21.2 million worth of preferred stock in the first quarter. This move is part of a broader strategy to enhance financial stability and reduce future dividend obligations. The company has also entered into a $10 million bridge loan agreement to support its liquidity needs. Looking ahead, Cedar Realty Trust aims to improve occupancy rates and backfill vacant spaces while managing its capital allocation to optimize returns and maintain its status as a real estate investment trust (REIT).