PORT WASHINGTON, N.Y., Oct. 26 //PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE: CDR) today announced that it has completed fixed-rate long-term financing on Swede Square, a 98,000 sq. ft. shopping center on the Germantown Pike in East Norriton, Pennsylvania, approximately ten miles from downtown Philadelphia. It is anchored by an L.A. Fitness facility, Panera Bread, a Wells Fargo bank and a Goodyear Tire & Rubber Co. store.

The loan, in the amount of $10.6 million (representing approximately 75% of appraised value), was placed with Citigroup Global Markets, Inc. and has a 10-year term with interest at 5.48% and amortization on a 30-year schedule.

The property was previously included in the collateral pool for the Company's floating-rate credit facility.

About Cedar Shopping Centers

Cedar Shopping Centers, Inc. is a fullyintegrated real estate investment trust which focuses primarily on the ownership, operation, development and redevelopment of "bread and butter"® supermarketanchored shopping centers in coastal midAtlantic and New England states. The Company presently owns (both exclusively or in joint venture) and manages approximately 15.4 million square feet of GLA at 132 shopping center properties, of which more than 75% are anchored by supermarkets and/or drugstores with average remaining lease terms of approximately 11 years.

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forwardlooking statements include, without limitation, statements containing the words "anticipates", "believes", "expects", "intends", "future", and words of similar import which express our beliefs, expectations or intentions regarding future performance or future events or trends. While forwardlooking 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 forwardlooking statements as a result of factors outside of our 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 our market areas in particular; the financial viability of our tenants (including an inability to pay rent, filing for bankruptcy protection, closing stores and/or 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 our properties if offered for sale; the ability of our joint venture partners to fund their respective shares of property acquisitions, tenant improvements and capital expenditures; 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, costs 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 relet space upon the expiration or termination of current leases and incur applicable required replacement costs; and the financial flexibility of ourselves and our joint venture partners to repay or refinance debt obligations when due and to fund tenant improvements and capital expenditures. For more information regarding risks that may cause our actual results to differ materially from any forward looking statements, please see the discussion under "Risk Factors" contained in the prospectus supplement, the accompanying prospectus and the other information contained in our publicly available filings with the SEC, including our Annual Report on Form 10K for the year ended December 31, 2009. We do not undertake any responsibility to update any of these factors or to announce publicly any revisions to forward looking statements, whether as a result of new information, future events or otherwise.

SOURCE Cedar Shopping Centers, Inc.

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Professionals…we all need to pay attention. What are the practical implications for real estate investors?

We have come through a number of years of synthetic leases and off-the-balance-sheet corporate strategies and some abuses. The IASB and the Federal Accounting Standards Board (FASB) have proposed a working paper draft which essentially will provide more accounting transparency for corporate liabilities. As drafted, “operating leases” which have often been off the balance sheets, after 2012, if adopted, will be characterized as “capital leases”, whose rental obligations and term will have to be capitalized. The impact will be significant. In simple laymen’s language, a rental obligation of $100,000 per year on a modest five (5) year base lease term would have to be accounted as a $500,000 corporate liability on their balance sheet and disclosures. The same commercial occupancy, same tenant, same location, for a $100,000 rental stream with a twenty (20) year base term would translate into a $2,000,000 liability. Further, a $100,000 per year lease for five (5) years with three (3) five year renewal options would, also, be accounted as a $2,000,000 liability. i.e. ($100,000 x 5 = $500,000; plus 3 x 5 years or 15 years x $100,000, producing the same $2,000,000 liability since option periods, if reasonably anticipated, must be included per the current draft. Looks like shorter term leases will be the order of the day in this Brave New World of Real Estate Lease Accounting.
The Rent vs. Own debate will be back in full force.