Retail Properties of America, Inc. Provides Business Update

Rhea-AI Summary

Retail Properties of America, Inc. (NYSE: RPAI) reported improved cash rent collection for April, May, and June 2020, with 67.4%, 63.7%, and 64.7% collected respectively, totaling 65.3% for Q2. As of July 2, 90% of the portfolio was open, up from 79% on May 29. The company repaid significant amounts on its $850 million unsecured revolving line of credit, reducing outstanding debt to $135 million. RPAI owns 102 retail properties in the U.S., totaling 20.0 million square feet.

Positive

• 67.4% of April rent, 63.7% of May rent, and 64.7% of June rent collected.
• Total Q2 rent collection at 65.3%.
• 90% of portfolio square footage open as of July 2, up from 79% on May 29.
• Substantial repayments made on $850 million revolving line of credit, reducing outstanding debt to $135 million.

Negative

• Rent collection for May saw a decline from 52.4% to 63.7%, indicating ongoing challenges.

OAK BROOK, Ill., July 6, 2020 /PRNewswire/ -- Retail Properties of America, Inc. (NYSE: RPAI) (the "Company") today provided an update on cash rent collection statistics for the months of April, May, and June 2020. Compared to the previously reported 60.3% of April rent collected as of May 28, 2020, the Company has received 67.4% of April rent as of June 30, 2020. Compared to the previously reported 52.4% of May rent collected as of May 28, 2020, the Company has received 63.7% of May rent as of June 30, 2020. Rent collection for June as of June 30, 2020 totals 64.7%, ahead of the realized collection pace of both April and May during the same days of those calendar months. In the aggregate, the Company has collected 65.3% of second quarter 2020 rent as of June 30, 2020.

April, May, and June 2020 Rent Collections as of June 30, 20201
		% of Total ABR		% of April Rent Collected		% of May Rent Collected		% of June Rent Collected		% of Q2 2020 QTD Rent Collected
Essential		30.6%		96.4%		95.9%		93.6%		95.3%
Office		6.3%		89.8%		91.8%		86.2%		89.3%
Subtotal: Essential and Office		36.9%		95.3%		95.2%		92.3%		94.3%
Restaurants – Quick Service		7.2%		63.8%		67.4%		67.1%		66.1%
Restaurants – Full Service		8.8%		52.7%		53.8%		49.7%		52.1%
Subtotal: Restaurants		16.0%		58.0%		60.0%		57.8%		58.6%
Non-Essential		47.1%		48.6%		40.0%		45.2%		44.6%
Total Operating Portfolio		100.0%		67.4%		63.7%		64.7%		65.3%

(1) The classification of tenant type, including the classification between essential and non-essential, is based on management's understanding of the tenant operations and may not be comparative to similarly titled classifications by other companies. The table is based on annualized base rent (ABR) of leases in effect as of March 31, 2020.

"With 90% of our portfolio square footage open as of July 2, up from 79% as of May 29, we have sustained the positive business momentum we outlined during our business update in early June," stated Steven Grimes, chief executive officer. "We continue our broad-based efforts to support our tenants' reopening efforts as well as to promote a safe and accommodating environment for consumer activity."

Based, in part, on the upward trajectory of daily cash collections in May and June, and the ongoing re-opening of the Company's tenant base, the Company repaid substantial amounts during June on its $850 million unsecured revolving line of credit (the "revolver"), which was nearly fully drawn on March 31, 2020. As of June 30, the Company had $135 million outstanding on the revolver and $715 million in revolver availability.

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 March 31, 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

 

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SOURCE Retail Properties of America, Inc.

FAQ

What was the cash rent collection percentage for April 2020 at Retail Properties of America (RPAI)?

Retail Properties of America reported a cash rent collection percentage of 67.4% for April 2020.

How much of June 2020 rent has been collected by RPAI?

As of June 30, 2020, RPAI had collected 64.7% of the rent for June 2020.

What percentage of total rent was collected for the second quarter of 2020 by RPAI?

RPAI collected a total of 65.3% of its rent for the second quarter of 2020.

How many retail properties does RPAI own?

RPAI owns 102 retail properties across the United States.

What is the status of RPAI's portfolio openings as of July 2020?

As of July 2, 2020, 90% of RPAI's portfolio square footage was open, up from 79% on May 29, 2020.