Cedar Realty Trust Announces Dual-Track Review of Strategic Alternatives

the potential sale of its core grocery-anchored shopping center portfolio and its mixed-use redevelopment projects are among the possibilities.

Cedar Realty Trust has announced that its Board of Directors has initiated a dual-track process to review the company’s strategic alternatives to maximize shareholder value. Its portfolio is primarily located in high-density urban markets from Washington, D.C. to Boston.

As part of this process, Cedar is exploring, among other alternatives, a potential sale or merger involving the entire company, and alternatively the potential sale of its core grocery-anchored shopping center portfolio and its mixed-use redevelopment projects. Namely, Bloomberg News reported that Cedar is also willing to complete a full sale of its grocery-anchored shopping centers and mixed-use redevelopment projects. The grocery-anchored portfolio could be fetched for $965 million, based on terms reviewed by Bloomberg.

The REIT had no comment about such dealings.

“We believe there is a profound disconnect between Cedar’s share price and the underlying value of our real estate, as evidenced by recent transaction activity both within our portfolio and in our markets,” stated Bruce Schanzer, President and CEO.

Its shares were up 13 percent in Friday morning stock market trading, touching its 52-week high.

“The Board is committed to maximizing value for all our shareholders and, accordingly, we believe that this dual-track strategic review process will enable us to achieve that.”

B of A Securities is acting as financial advisor to Cedar. JLL is acting as the company’s real estate advisor with respect to a potential sale of the grocery-anchored shopping center portfolio. CBRE is acting as real estate advisor with respect to a potential sale of the mixed-use redevelopment projects.

As previously disclosed, Cedar’s board formed a special committee in the second half of 2019 to commence a strategic review process that was disrupted due to the outbreak of the COVID-19 pandemic.

No assurances can be given regarding the outcome or timing of the strategic review process. Cedar does not presently intend to make any further public comment regarding the process until it has been completed.