Cedar Shopping Centers Announces Third Quarter Results

- Maintains 95% Occupancy Level - - Increases Revenues - - Arranges $100+ Million Joint Venture and Private Placement - - Raises Guidance For 2009 -


PORT WASHINGTON, N.Y., Oct. 28  /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE:CDR) today reported its financial results for the third quarter, ended September 30, 2009.

  Third Quarter Highlights


  --  Revenues for the quarter increased 6.3% to $45.9 million as compared
      to $43.1 million for the comparable quarter of 2008.


  --  Net income attributable to common shareholders for the quarter, before
      certain non-cash and/or non-recurring items, was $2.7 million ($0.06
      per share).  After such items, net income attributable to common
      shareholders was $1.3 million ($0.03 per share), as compared to $3.3
      million ($0.07 per share) for the comparable quarter of 2008 (net
      adjustments for that period were not significant).  The non-cash
      and/or non-recurring items included an impairment charge, receipt of
      insurance proceeds, and expenses related to stock-based compensation.


  --  Funds from Operations ("FFO") for the quarter, before the
      above-mentioned non-cash and/or non-recurring items, was $14.2 million
      ($0.30 per share/OP unit) as compared to $14.3 million ($0.31 per
      share/OP unit) for the comparable quarter of 2008. After such items,
      FFO was $13.0 million ($0.28 per share/OP unit) as compared to $14.4
      million ($0.31 per share/OP unit) for the comparable quarter of 2008.


  --  Occupancy for the Company's stabilized portfolio remained at 95%. On
      an overall basis, excluding four ground-up development properties, the
      portfolio was approximately 92% leased as of September 30, 2009.


  --  The Company signed renewal leases aggregating 202,000 square feet at
      an average increase in base rents of 7% and signed new leases for
      409,000 square feet at an average base rent of $17.24 per square foot;
      there were 198,000 square feet of terminated leases at an average base
      rent of $4.02 per square foot.



Leo Ullman, Cedar's CEO, stated, "Our financial results for the third quarter again reflect the continued strength of our Company's "bread and butter", primarily supermarket-anchored, shopping centers.  In accordance with our business plan, we have been able to maintain solid occupancy and cash flows. We have delivered, or will soon deliver, most of our development pipeline, which will start to contribute meaningfully to our results in 2010 and beyond.

"We are very excited to have arranged a strategic alliance (including a private placement and joint venture transactions) with RioCan Real Estate Investment Trust of Toronto, Canada, one of the largest retail real estate companies in the world.  These transactions, as reported earlier this week, not only provide a very strong capital base for our Company, but, importantly, will allow us to pursue opportunities as they emerge in the coming years and to add to shareholder value.  Accordingly, our multi-pronged strategy for maintaining our financial strength is contributing to an ongoing reduction in our floating rate debt and in our overall debt."

  Financial and Operating Results

  Results of operations



Revenues for the quarter increased 6.3% to $45.9 million as compared to $43.1 million for the comparable quarter of 2008. Net income attributable to common shareholders, before certain non-cash and/or non-recurring items, was $2.7 million ($0.06 per share) as compared to $3.2 million ($0.07 per share) for the comparable quarter of 2008. Such non-cash and/or non-recurring items resulted in net income attributable to common shareholders of $1.3 million ($0.03 per share) as compared to $3.3 million ($0.07 per share) for the comparable quarter of 2008. FFO for the quarter, before the above-mentioned non-cash and/or non-recurring items, was $14.2 million ($0.30 per share/OP unit) as compared to $14.3 million ($0.31 per share/OP unit) for the comparable quarter of 2008. After such items, FFO was $13.0 million ($0.28 per share/OP unit) as compared to $14.4 million ($0.31 per share/OP unit) for the comparable quarter of 2008. FFO and net income attributable to common shareholders for the third quarter of 2009 also include income from two acquisitions made in the first quarter of 2009, and income from the commencement of operations at several of the Company's ground-up development properties, but was impacted by vacancy expenses from the start of re-development at the Shore Mall property, and, on a same-property basis, higher bad debt expense. The non-cash and/or non-recurring items included an impairment charge, receipt of insurance proceeds and expenses related to stock-based compensation.

Revenues for the nine-month period increased 6.1% to $137.2 million as compared to $129.3 million for the comparable period of 2008. Net income attributable to common shareholders, before certain non-cash and/or non-recurring items, was $8.0 million ($0.18 per share) as compared to $7.5 million ($0.17 per share) for the comparable period of 2008. Such non-cash and/or non-recurring items resulted in net income attributable to common shareholders of $5.1 million ($0.11 per share) as compared to $7.6 million ($0.17 per share) for the comparable period of 2008. FFO for the nine-month period, before the above-mentioned non-cash and/or non-recurring items, was $41.0 million ($0.90 per share/OP unit) as compared to $42.4 million ($0.91 per share/OP unit) for the comparable period of 2008. After such items, FFO was $39.2 million ($0.83 per share/OP unit) as compared to $42.6 million ($0.92 per share/OP unit) for the comparable period of 2008. The non-cash and/or non-recurring items included termination of potential acquisitions and development projects, the expensing of acquisition transaction costs, impairment charges, receipt of insurance proceeds and expenses related to stock-based compensation.

Net cash flows provided by operating activities were $9.2 million for the third quarter of 2009 as compared to $11.6 million for the comparable quarter of the prior year.

A reconciliation of net income attributable to common shareholders to FFO is contained in the table accompanying this release.

Acquisitions and development

The Company recognized additional FFO of $0.6 million, or $0.01 per share, primarily as a result of the acquisitions of the New London Mall in New London, Connecticut and San Souci Plaza in California, Maryland in the first quarter of 2009, and $0.3 million, or $0.01 per share, as a result of commencement of operations late in the third quarter at several ground-up development properties, principally at Upland Square in Pottsgrove, Pennsylvania, and Northside Commons in Campbelltown, Pennsylvania. This was offset by vacancy expenses of $0.9 million, or $0.02 per share, as a result of commencement of redevelopment activities at the Shore Mall property, including the purchase of the former Value City lease (approximately 144,000 square feet of gross leasable area ("GLA") in a building which the Company intends to demolish).

Occupancy and same-property results

Occupancy at stabilized properties remained at 95%. On an overall basis, excluding four ground-up development properties, the portfolio was approximately 92% leased as of September 30, 2009. The Company's same-property operations, comprising 111 properties, generated operating results that were generally stable. Same-property revenues were $38.7 million in the third quarter of 2009 compared to $38.9 million, excluding the receipt of certain insurance proceeds in the comparable period of 2008. Same-property net operating income was $28.7 million in the third quarter of 2009 and $29.2 million (as similarly adjusted) in the comparable period of 2008.  The decrease is due primarily to increased bad debt expense attributable to in-line locally-owned fitness centers and personal-care stores.

Leasing and Development Activity

In the third quarter of 2009, the Company signed 41 renewal leases totaling approximately 202,000 square feet of GLA with an average increase in base rents of 7.0%. The Company signed 26 new leases totaling approximately 409,000 square feet with an average base rent of $17.24 per square foot, of which 379,000 square feet, with an average base rent of $17.35 per square foot, related to new leases at the Company's ground-up development properties that came into operation late in the third quarter of 2009.  The Company also had 13 terminated leases totaling approximately 198,000 square feet with an average base rent of $4.02 per square foot, of which 144,000 square feet, with an average base rent of $2.85 per square foot, related to the Value City lease.

The Company has a development and redevelopment pipeline of approximately $348 million, including four properties that commenced operations late in the third quarter of 2009.  The other seven properties are expected to be placed into service largely during the remainder of 2009 and continuing into 2010 (apart from the announced redevelopment of the Shore Mall).  As of September 30, 2009, the Company had spent approximately $264 million of the estimated total project costs, including $31 million applicable to the Shore Mall property.  It expects to fund the remaining estimated balance of development costs principally with borrowings under its existing credit facilities.

Balance Sheet

Total assets were $1.84 billion at September 30, 2009 and $1.73 billion at December 31, 2008.  The Company had total debt outstanding of $1.12 billion at September 30, 2009 as compared to $1.01 billion at December 31, 2008.

At September 30, 2009, the Company's fixed-rate debt was approximately 64% of total indebtedness, with a weighted average remaining term of 5.7 years and a weighted average interest rate of 5.8% per annum.

The Company expects to complete, during the fourth quarter, an extension of its existing secured revolving stabilized property credit facility due January 2010. To date, the Company has received $241 million of commitments.

Cedar/RioCan Arrangements

As previously announced, the Company entered into definitive agreements on October 26, 2009 with RioCan Real Estate Investment Trust, headquartered in Toronto, Canada (TSX: REI.UN) ("RioCan"), the second largest owner of shopping center properties in North America, pursuant to which RioCan will purchase for $40 million approximately 6.7 million shares at $6.00 per share of the Company's common stock through a private placement.  The Company will grant to RioCan a warrant exercisable over a two-year period to purchase an additional approximate 1.4 million common shares at an exercise price of $7.00 per share. RioCan and the Company have further agreed to a joint venture arrangement pursuant to which RioCan will purchase an 80% interest in seven supermarket-anchored properties, presently owned by the Company, located in Pennsylvania, Massachusetts and Connecticut. The closings of the joint venture, subject to lender consents for five of the seven properties, are expected to be completed by the end of the first quarter of 2010, which generate approximately $63 million and will be used to repay/reduce outstanding debt. Further, RioCan and the Company anticipate purchasing up to $500 million of additional new properties over a two-year period in the same RioCan (80%) and Cedar (20%) joint venture format.

Financial Guidance

The Company announced an increase in its guidance with respect to FFO for 2009 to a range of $0.95 to $1.02 per share/OP unit.  This includes the expected dilution from the sale of shares to RioCan.  In providing this guidance, it should be noted that there remain several important variables which provide considerable uncertainty and lack of clear predictability of financial results for the balance of the year.  They include the following, as previously set forth in our guidance:

  --  potentially lower revenues and increased bad debt expense from tenant
      lease terminations and renegotiated lease arrangements,
  --  increased interest costs attributable to the renewal of the Company's
      existing secured revolving stabilized property credit facility, and

  --  potential additional write-offs of development and acquisition costs
      on projects which may be canceled or impaired.



In addition, the foregoing guidance does not include the potential impact of mark-to-market costs of the Company's stock-based compensation.

Supplemental Information Package

The Company has issued "Supplemental Financial Information" for the period ended September 30, 2009 and has filed such information today as an exhibit to Form 8-K, which will also be available on the Company's website at http:///www.cedarshoppingcenters.com.

Reference to Form 10-Q

Interested parties are urged to review the Form 10-Q to be filed with the Securities and Exchange Commission for the quarter ended September 30, 2009, when available, for further details.  The Form 10-Q can also be linked through the "Investor Relations" section of the Company's website.

Investor Conference Call

The Company will host a conference call on Thursday, October 29, 2009, at 10:00 AM Eastern time to discuss the third quarter results. The conference call can be accessed by dialing [phone] or [phone] for international participants.  A live webcast of the conference call will be available online on the Company's website at http://www.cedarshoppingcenters.com/. A replay of the call will be available from 1:00 PM Eastern time on October 29, 2009, until midnight Eastern time on November 12, 2009. The replay dial-in numbers are [phone] or, for international callers, [phone]. Please use passcode 8631425 for the telephonic replay. A replay of the Company's webcast will be available on the Company's website for a limited time.

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 "bread and butter" supermarket-anchored shopping centers in coastal mid-Atlantic and New England states. The Company presently owns and operates approximately 13.1 million square feet of GLA at 124 shopping center properties, of which more than 75% are anchored by supermarkets and/or drugstores with average remaining lease terms of approximately 11 years. The Company's stabilized properties have an occupancy rate of approximately 95%.  The Company has also announced a pipeline of seven additional substantially pre-leased primarily supermarket- and drugstore-anchored development properties.

For additional financial and descriptive information on the Company, its operations and its portfolio, please refer to the Company's website at http://www.cedarshoppingcenters.com/.

Forward-Looking Statements

Statements made or incorporated by reference in this press release include certain "forward-looking statements".  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 (including an inability to pay rent, filing for bankruptcy protection, closing stores and vacating the premises); the continuing availability of acquisition, 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; the availability of suitable joint venture partners and potential purchasers of the Company's properties if offered for sale; changes in interest rates; the fact that returns from acquisition, development and redevelopment activities may not be at expected levels or at expected times; risks inherent 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 relating thereto, and market factors involved in the pricing of material and labor; the need to renew leases or re-let space upon the expiration or termination of current leases and incur applicable required replacement costs; and the financial flexibility to repay or refinance debt obligations when due and to fund tenant improvements and capital expenditures.

Non-GAAP Financial Measures - FFO

Funds From Operations ("FFO") is a widely-recognized non-GAAP financial measure for REITs that the Company believes, when considered with financial statements determined in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. In addition, FFO is useful to investors as it captures features particular to real estate performance by recognizing that real estate has generally appreciated over time or maintains residual value to a much greater extent than do other depreciable assets. Investors should review FFO, along with GAAP net income, when trying to understand an equity REIT's operating performance. The Company presents FFO because the Company considers it an important supplemental measure of its operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. Among other things, the Company uses FFO or an adjusted FFO-based measure (1) as one of several criteria to determine performance-based bonuses for members of senior management, (2) in performance comparisons with other shopping center REITs, and (3) to measure compliance with certain financial covenants under the terms of the Company's secured revolving credit facilities.

The Company computes FFO in accordance with the "White Paper" on FFO published by the National Association of Real Estate Investment Trusts ("NAREIT"), which defines FFO as net income attributable to common shareholders (determined in accordance with GAAP), excluding gains or losses from debt restructurings and sales of properties, plus real estate-related depreciation and amortization, and after adjustments for partnerships and joint ventures (which are computed to reflect FFO on the same basis).

FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income attributable to common shareholders or to cash flow from operating activities. FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Although FFO is a measure used for comparability in assessing the performance of REITs, as the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another.

The following table sets forth the Company's calculations of FFO for the three and nine months ended September 30, 2009 and 2008:

                       Three months ended Sep 30,  Nine months ended Sep 30,
                       --------------------------  -------------------------
                            2009         2008         2009         2008
                            ----         ----         ----         ----
  Net income attributable
   to common
   shareholders          $1,447,000   $3,277,000   $5,130,000   $7,613,000
  Add (deduct):
    Real estate
     depreciation
     and amortization    12,671,000   11,921,000   37,655,000   37,321,000
    Noncontrolling
    interests:
      Limited partners'
       interest              66,000      148,000      233,000      347,000
      Minority interests
       in consolidated
       joint ventures       332,000      412,000      287,000    1,600,000
      Minority interests'
       share of FFO
       applicable to
       consolidated
       joint ventures    (1,661,000)  (1,368,000)  (4,131,000)  (4,566,000)
    Equity in income
     of unconsolidated
     joint venture         (260,000)    (310,000)    (802,000)    (682,000)
    FFO from
     unconsolidated
     joint venture          377,000      360,000    1,113,000      941,000
    Gain on sale of
     discontinued
     operations                   -            -     (277,000)           -
                        -----------  -----------  -----------  -----------
  Funds From Operations $12,972,000  $14,440,000  $39,208,000  $42,574,000
                        ===========  ===========  ===========  ===========

  FFO per common
   share (assuming
   conversion of
   OP Units):
    Basic                     $0.28        $0.31        $0.83        $0.92
                              =====        =====        =====        =====
    Diluted                   $0.28        $0.31        $0.83        $0.92
                              =====        =====        =====        =====

  Weighted average
   number of common
   shares:
  Shares used in
   determination of
   basic earnings
   per share             45,066,000   44,488,000   45,003,000   44,470,000
  Additional shares
   assuming conversion
   of OP Units (basic)    2,014,000    2,019,000    2,016,000    2,026,000
                          ---------    ---------    ---------    ---------
  Shares used in
   determination
   of basic FFO
   per share             47,080,000   46,507,000   47,019,000   46,496,000
                         ==========   ==========   ==========   ==========

  Shares used in
   determination of
   diluted earnings
   per share             45,066,000   44,490,000   45,003,000   44,472,000
  Additional shares
   assuming conversion
   of OP Units
   (diluted)              2,014,000    2,020,000    2,016,000    2,026,000
                          ---------    ---------    ---------    ---------
  Shares used in
   determination
   of diluted FFO
   per share             47,080,000   46,510,000   47,019,000   46,498,000
                         ==========   ==========   ==========   ==========



                         CEDAR SHOPPING CENTERS, INC.
                          Consolidated Balance Sheets

                                               September 30,   December 31,
                                                   2009            2008
                                                   ----            ----
                                               (unaudited)
  Assets
    Real estate:
      Land                                     $393,757,000    $378,069,000
      Buildings and improvements              1,521,992,000   1,397,508,000
                                              -------------   -------------
                                              1,915,749,000   1,775,577,000
      Less accumulated depreciation            (181,045,000)   (146,401,000)
                                               ------------    ------------
    Real estate, net                          1,734,704,000   1,629,176,000

    Real estate held for sale                     2,270,000       8,230,000
    Investment in unconsolidated
     joint venture                                5,412,000       4,976,000

    Cash and cash equivalents                     9,526,000       8,231,000
    Restricted cash                              14,104,000      14,004,000
    Rents and other receivables, net              8,156,000       5,818,000
    Straight-line rents receivable               16,328,000      14,297,000
    Other assets                                 11,286,000       9,403,000
    Deferred charges, net                        33,363,000      32,993,000
                                                 ----------      ----------
  Total assets                               $1,835,149,000  $1,727,128,000
                                             ==============  ==============

  Liabilities and equity
    Mortgage loans payable                     $795,476,000    $706,700,000
    Mortgage loans payable - real estate
     held for sale                                        -       2,283,000
    Secured revolving credit facilities         323,479,000     304,490,000
    Accounts payable and accrued expenses        41,018,000      46,548,000
    Unamortized intangible lease liabilities     54,029,000      61,384,000
                                                 ----------      ----------
  Total liabilities                           1,214,002,000   1,121,405,000
                                              -------------   -------------

  Limited partners' interest in
   Operating Partnership                         14,458,000      14,271,000

  Commitments and contingencies                           -               -

  Equity:
    Cedar Shopping Centers, Inc.
     shareholders' equity:
      Preferred stock  ($.01 par
       value, $25.00 per share
       liquidation value, 12,500,000
       shares authorized, 3,550,000
       shares issued and outstanding)            88,750,000      88,750,000
      Common stock  ($.06 par value,
       150,000,000 shares authorized
       45,084,000 and 44,468,000 shares,
       respectively, issued and outstanding)      2,705,000       2,668,000
      Treasury stock  (987,000 and 713,000
       shares, respectively, at cost)            (9,768,000)     (9,175,000)
      Additional paid-in capital                578,509,000     576,083,000
      Cumulative distributions in excess
       of net income                           (126,959,000)   (127,043,000)
      Accumulated other comprehensive loss       (4,391,000)     (7,256,000)
                                                 ----------      ----------
        Total Cedar Shopping Centers, Inc.
         shareholders' equity                   528,846,000     524,027,000
                                                -----------     -----------
    Noncontrolling interests:
      Minority interests in consolidated
       joint ventures                            68,536,000      58,150,000
      Limited partners' interest in
       Operating Partnership                      9,307,000       9,275,000
                                                  ---------       ---------
        Total noncontrolling interests           77,843,000      67,425,000
                                                 ----------      ----------
  Total equity                                  606,689,000     591,452,000
                                                -----------     -----------
  Total liabilities and equity               $1,835,149,000  $1,727,128,000
                                             ==============  ==============



                           CEDAR SHOPPING CENTERS, INC.
                        Consolidated Statements of Income
                                   (unaudited)

                           Three months ended         Nine months ended
                              September 30,             September 30,
                           ------------------         -----------------
                           2009         2008          2009          2008
                           ----         ----          ----          ----
  Revenues:
    Rents             $37,761,000  $34,879,000  $110,098,000  $103,648,000
    Expense
     recoveries         7,942,000    7,741,000    26,659,000    24,747,000
    Other                 147,000      511,000       450,000       893,000
                          -------      -------       -------       -------
  Total revenues       45,850,000   43,131,000   137,207,000   129,288,000
                       ----------   ----------   -----------   -----------
  Expenses:
    Operating,
     maintenance and
     management         8,452,000    6,963,000    25,507,000    22,269,000
    Real estate and
     other property-
     related taxes      5,324,000    4,939,000    16,023,000    14,278,000
    General and
     administrative     2,521,000    2,649,000     6,813,000     7,163,000
    Terminated projects
     and acquisition
     transaction costs          -        5,000     3,948,000         5,000
    Depreciation and
     amortization      12,730,000   11,951,000    37,705,000    37,399,000
                       ----------   ----------    ----------    ----------
  Total expenses       29,027,000   26,507,000    89,996,000    81,114,000
                       ----------   ----------    ----------    ----------

  Operating income     16,823,000   16,624,000    47,211,000    48,174,000
  Non-operating
   income and expense:
    Interest expense,
     including
     amortization of
     deferred
     financing costs  (12,728,000) (11,211,000)  (36,375,000)  (33,810,000)
    Interest income        10,000       35,000        28,000       270,000
    Equity in income
     of unconsolidated
     joint venture        260,000      310,000       802,000       682,000
    Gain on sale of
     land parcel                -            -       236,000             -
                              ---          ---       -------           ---
  Total non-operating
   income and expense (12,458,000) (10,866,000)  (35,309,000)  (32,858,000)
                      -----------  -----------   -----------   -----------
  Income before
   discontinued
   operations           4,365,000    5,758,000    11,902,000    15,316,000

  (Loss) income from
   discontinued
   operations            (551,000)      48,000      (622,000)      151,000
  Gain on sale of
   discontinued
   operations                   -            -       277,000             -
                              ---          ---       -------           ---
  Total discontinued
   operations            (551,000)      48,000      (345,000)      151,000
                         --------       ------      --------       -------

  Net income            3,814,000    5,806,000    11,557,000    15,467,000

  Less, net income
   attributable to
   noncontrolling
   interests:
    Minority
     interests in
     consolidated
     joint ventures      (332,000)    (412,000)     (287,000)   (1,600,000)
    Limited partners'
     interest in
     Operating
     Partnership          (66,000)    (148,000)     (233,000)     (347,000)
                          -------     --------      --------      --------
    Total net income
     attributable to
     noncontrolling
     interests           (398,000)    (560,000)     (520,000)   (1,947,000)
                         --------     --------      --------    ----------

  Net income
   attributable to
   Cedar Shopping
   Centers, Inc.        3,416,000    5,246,000    11,037,000    13,520,000

  Preferred
   distribution
   requirements        (1,969,000)  (1,969,000)   (5,907,000)   (5,907,000)
                       ----------   ----------    ----------    ----------
  Net income
   attributable
   to common
   shareholders        $1,447,000   $3,277,000    $5,130,000    $7,613,000
                       ==========   ==========    ==========    ==========
  Per common share
   (basic and diluted)
   attributable to
   common shareholders:
    Continuing
     operations             $0.04        $0.07         $0.12         $0.17
    Discontinued
     operations             (0.01)           -         (0.01)            -
                            -----          ---         -----           ---
                            $0.03        $0.07         $0.11         $0.17
                            =====        =====         =====         =====
  Amounts attributable
   to Cedar Shopping
   Centers, Inc.
   common shareholders,
   net of limited
   partners' interest:
    Income from
     continuing
     operations        $1,974,000   $3,231,000    $5,460,000    $7,469,000
    Income from
     discontinued
     operations          (527,000)      46,000      (595,000)      144,000
    Gain on sale of
     discontinued
     operations                 -            -       265,000             -
                              ---          ---       -------           ---
    Net income         $1,447,000   $3,277,000    $5,130,000    $7,613,000
                       ==========   ==========    ==========    ==========

  Dividends to
   common shareholders         $-  $10,010,000    $5,046,000   $30,017,000
                              ===  ===========    ==========   ===========
  Per common share             $-      $0.2250       $0.1125       $0.6750
                              ===      =======       =======       =======

  Weighted average
   number of common
   shares outstanding  45,066,000   44,488,000    45,003,000    44,470,000
                       ==========   ==========    ==========    ==========



                       CEDAR SHOPPING CENTERS, INC.
                  Consolidated Statements of Cash Flows
                               (unaudited)
                                                  Nine months ended
                                                    September 30,
                                                  -----------------
                                                  2009         2008
                                                  ----         ----
  Cash flow from operating activities:
    Net income                                $11,557,000  $15,467,000
    Adjustments to reconcile net income to
     net cash provided by operating
     activities:
      Non-cash provisions:
        Equity in income of unconsolidated
         joint venture                           (802,000)    (682,000)
        Distributions from unconsolidated
         joint venture                            716,000      634,000
        Terminated projects and acquisition
         transaction costs                      3,139,000            -
        Gain on sales of real estate             (513,000)           -
        Straight-line rents receivable         (2,048,000)  (2,136,000)
        Depreciation and amortization          37,795,000   37,532,000
        Amortization of intangible
         lease liabilities                    (10,620,000) (10,377,000)
        Amortization/market price
         adjustments relating to stock-
         based compensation                     1,713,000    2,238,000
        Amortization of deferred
         financing costs                        2,410,000    1,227,000
      Increases/decreases in operating assets
       and liabilities:
        Rents and other receivables, net       (2,338,000)    (221,000)
        Other                                  (4,718,000)  (3,035,000)
        Accounts payable and accrued expenses  (2,098,000)    (204,000)
                                               ----------     --------
  Net cash provided by
   operating activities                        34,193,000   40,443,000
                                               ----------   ----------

  Cash flow from investing activities:
    Expenditures for real estate
     and improvements                         (86,049,000) (71,001,000)
    Net proceeds from sales of real estate      3,482,000            -
    Purchase of consolidated joint venture
     minority interests                                 -  (17,454,000)
    Investment in unconsolidated
     joint venture                               (350,000)  (1,097,000)
    Construction escrows and other               (901,000)    (755,000)
                                                 --------     --------
  Net cash (used in) investing activities     (83,818,000) (90,307,000)
                                              -----------  -----------

  Cash flow from financing activities:
    Net advances from revolving
     credit facilities                         18,989,000   84,250,000
    Proceeds from mortgage financings          51,588,000   80,947,000
    Mortgage repayments                       (15,753,000) (90,840,000)
    Net payments of deferred
     financing costs                           (2,821,000)  (4,412,000)
    Noncontrolling interests:
      Contributions from consolidated
       joint venture minority
       interests, net                          12,212,000    4,260,000
      Distributions to consolidated
       joint venture minority interests        (2,113,000)     (27,000)
      Redemption of Operating
       Partnership Units                                -     (122,000)
      Distributions to limited partners          (229,000)  (1,368,000)
    Preferred stock distributions              (5,907,000)  (5,907,000)
    Distributions to common shareholders       (5,046,000) (30,017,000)
                                               ----------   ----------
  Net cash provided by
   financing activities                        50,920,000   36,764,000
                                               ----------   ----------

  Net increase (decrease) in cash and
   cash equivalents                             1,295,000  (13,100,000)
  Cash and cash equivalents at
   beginning of period                          8,231,000   23,050,000
                                                ---------   ----------
  Cash and cash equivalents at
   end of period                               $9,526,000   $9,950,000
                                               ==========   ==========


DATASOURCE: Cedar Shopping Centers, Inc.



CONTACT:  Cedar Shopping Centers, Inc., Leo S. Ullman, Chairman, CEO and

President, [phone], 



Web Site:  http://www.cedarshoppingcenters.com/ 

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