Investment Thesis
Cedar Realty Trust exhibits severe financial distress with negative net income (-$1.9M), extremely high leverage (22x debt-to-equity), and deteriorating revenue (-14.1% YoY). The company's negative ROE (-29.4%) and minimal interest coverage (1.4x) indicate inability to service debt obligations, making it highly vulnerable to default or restructuring.
Strengths
- Positive operating cash flow of $8.0M demonstrates some operational liquidity
- Operating margin of 26.9% suggests core real estate operations generate reasonable returns before debt burden
- Free cash flow margin of 26.9% indicates theoretical cash generation capacity from operations
Risks
- Extreme leverage at 22x debt-to-equity with $140M long-term debt against $6.4M equity creates insolvency risk
- Revenue decline of 14.1% YoY signals deteriorating property performance or occupancy rates
- Interest coverage ratio of 1.4x leaves minimal cushion; slight operational decline would breach debt covenants
- Negative net income and negative ROA (-1.1%) indicate value destruction for shareholders
- No insider buying activity suggests management lacks confidence in recovery
Key Metrics to Watch
- Quarterly revenue trends and occupancy rates (trajectory critical given -14.1% YoY decline)
- Debt refinancing activity and covenant compliance status (with 1.4x coverage, any missed rent collection is dangerous)
- Cash flow sustainability and capital expenditure requirements (operations generate $8M but must service $140M debt)
Financial Metrics
Revenue
29.7M
Net Income
-1.9M
EPS (Diluted)
$0.79
Free Cash Flow
8.0M
Total Assets
165.2M
Cash
5.2M
Profitability Ratios
Gross Margin
N/A
Operating Margin
26.9%
Net Margin
-6.3%
ROE
-29.4%
ROA
-1.1%
FCF Margin
26.9%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
22.00x
Debt/Assets
96.1%
Interest Coverage
1.37x
Long-term Debt
140.0M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-22T03:04:10.841121 |
Data as of: 2025-12-31 |
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