Retail Properties of America, Inc. Announces Third Quarter 2020 Dividend on Common Stock and Provides Business Update

Rhea-AI Summary

Retail Properties of America, Inc. (RPAI) has declared a third quarter dividend of $0.05 per Class A common share, payable on October 9, 2020, to stockholders on record as of September 25, 2020. This dividend resumption comes after a suspension aimed at enhancing liquidity. CEO Steve Grimes noted improved rent collection rates, rising from 71.4% in July to 77% in August, with open square footage at 93%. The company also reduced debt with $100 million in new unsecured notes and has over $880 million in liquidity, indicating a strengthened financial position.

Positive

• Resumption of dividend payments at $0.05 per share, enhancing shareholder income.
• Improved rent collection trends, rising to 77% in August.
• Total available liquidity exceeds $880 million, indicating strong financial health.

Negative

• None.

OAK BROOK, Ill., Sept. 8, 2020 /PRNewswire/ -- Retail Properties of America, Inc. (NYSE: RPAI) (the "Company") today announced that its board of directors has declared a third quarter dividend for its outstanding Class A common stock of $0.05 per common share. The Company's board had previously suspended the dividend to preserve and enhance liquidity and capital positioning. The dividend of $0.05 per common share will be paid on October 9, 2020, to Class A common stockholders of record on September 25, 2020.

"I am pleased to report that our board has resumed dividend payments for 2020," stated Steve Grimes, chief executive officer. "This reinstated dividend level takes into consideration dividends already paid year to date. The Board will continue to monitor our financial performance and declare additional dividend payments to at least cover our minimum taxable distribution requirements. This move further signals our desire to preserve our balance sheet strength and financial flexibility and the stabilization in our underlying business, including our improving rent collection trends, the ongoing reopening of our tenant base and our recent successful efforts to further reinforce our sound capital structure position. Our July rent collection level has improved from the previously reported 71.4% to 76%, and August rent collection stands at 77%, as our open square footage percentage has continued to migrate higher and now stands at 93%. We look forward to driving incremental operational progress and delivering on our goal to grow this initial quarterly dividend amount as conditions further normalize in the coming quarters."

As previously announced, the Company issued $100.0 million of principal in a reopening of its 4.00% senior unsecured notes due 2025 on July 21, 2020 and $400.0 million of principal in a public offering of its 4.75% senior unsecured notes due 2030 on August 25, 2020. The Company has redeployed the related net proceeds from these public issuances to repay the principal of existing indebtedness as follows:

• $135.0 million – repaid the full amount outstanding as of June 30, 2020 under the Company's $850.0 million unsecured revolving line of credit;
• $250.0 million – prepaid the Company's term loan due January 2021 and terminated the related swaps that had effectively fixed this variable rate loan; and
• $100.0 million – issued notice to holders of the Company's intent to prepay the $100.0 million principal amount outstanding under its private placement notes due June 2021 on September 14, 2020.

Following the anticipated prepayment of the private placement notes, the Company will have no debt maturities until 2022 and more than $880.0 million in total available liquidity.

ABOUT RPAI
Retail Properties of America, Inc. is a REIT that owns and operates high quality, strategically located open-air shopping centers, including properties with a mixed-use component. As of June 30, 2020, the Company owned 102 retail operating properties in the United States representing 20.0 million square feet. The Company is publicly traded on the New York Stock Exchange under the ticker symbol RPAI. Additional information about the Company is available at www.rpai.com.

CONTACT INFORMATION
Michael Gaiden
Vice President – Capital Markets and Investor Relations
Retail Properties of America, Inc.       
(630) 634-4233

View original content to download multimedia:http://www.prnewswire.com/news-releases/retail-properties-of-america-inc-announces-third-quarter-2020-dividend-on-common-stock-and-provides-business-update-301125863.html

SOURCE Retail Properties of America, Inc.

FAQ

What is the RPAI dividend amount and payment date for Q3 2020?

The RPAI dividend for Q3 2020 is $0.05 per share, payable on October 9, 2020.

Which dividends had RPAI previously suspended?

RPAI had previously suspended dividends to enhance liquidity and capital positioning.

How have RPAI's rent collection rates changed recently?

RPAI's rent collection improved from 71.4% in July to 77% in August 2020.

What is RPAI's current liquidity status?

RPAI has over $880 million in total available liquidity.