PORT WASHINGTON, N.Y., Sept. 6 /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE:CDR), a real estate investment trust which owns primarily supermarket-anchored shopping centers and drug store-anchored convenience centers, today announced that on September 1, 2005, the underwriters exercised their over-allotment option to purchase 1,350,000 additional shares of common stock at a net price, after discounts and fees, of $13.87 per share in connection with its recently completed marketed public offering of 9 million shares. Of the 9 million shares, 3 million shares were issued pursuant to a forward sale, which the Company may generally settle at any time prior to August 17, 2006. The forward sale portion of the stock issue was also priced at $13.87 (net after discounts and fees) per share. The over-allotment option will be treated in its entirety as part of the forward sale and may also be settled by the Company at any time prior to August 17, 2006. Net proceeds to Cedar from the exercise of the over-allotment option, if Cedar elects to settle the entire portion of the forward sale relating to the over-allotment option through full physical settlement, are estimated at approximately $18.7 million. This amount is in addition to (i) approximately $83 million in net proceeds received by the Company on August 17, 2005 from the sale of 6 million shares, representing the current sale portion of the offering, and (ii) approximately $41.6 million in net proceeds which may be realized by the Company from settlements during the next 12-months from the forward sales of stock. Cedar may also elect to settle the forward sale (including the portion relating to the over-allotment option) in cash or through net stock settlement. Merrill Lynch & Co., Inc. acted as the sole bookrunner for the offering; Raymond James acted as co-lead manager; Banc of America Securities, LLC, Legg Mason Wood Walker, Incorporated and UBS Securities LLC acted as co-managers. A written prospectus may be obtained at no cost from Merrill Lynch & Co., Inc., 4 World Financial Center, New York, NY 10080. Cedar Shopping Centers, Inc. is a self-managed real estate investment trust, which has realized remarkable growth in assets and shareholder value since its public offering in October 2003. The Company presently owns and operates 67 primarily community supermarket-anchored shopping centers and drug store-anchored convenience centers with approximately 6.3 million square feet of gross leasable area, located in eight contiguous states, predominantly in the Northeast. Forward-Looking Statements Statements made 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 belief, expectations or intentions regarding future performance or future events or trends. While forward-looking statements reflect good faith beliefs, 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 a difference 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; the continuing availability of shopping center acquisitions, and development and redevelopment opportunities, on favorable terms; the availability of equity and debt capital in the public and private markets; changes in interest rates; the fact that returns from development, redevelopment and acquisition activities may not be at expected levels; the Company's potential inability to realize the level of proceeds from property sales as initially expected; inherent risks 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, and market factors involved in the pricing of material and labor; the need to renew leases or re-let space upon the expiration of current leases; and the financial flexibility to refinance debt obligations when due. Contact Information: Investors/Media: Cedar Shopping Centers Stephanie Carrington / Jason Rando Leo Ullman, President The Ruth Group (516) 944-4525 (646) 536-7017/7025 DATASOURCE: Cedar Shopping Centers, Inc. CONTACT: Leo Ullman of Cedar Shopping Centers, President, +1-516-944-4525, ; Investors: Stephanie Carrington, +1-646-536-7017, Media: Jason Rando, +1-646-536-7025, , both of The Ruth Group

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