RPT Realty Announces 2022 Investment and Capital Markets Activity

Rhea-AI Summary

RPT Realty (NYSE:RPT) announced substantial capital markets activity for 2022, culminating in $1.2 billion in total capital activities. The firm made focused investments, acquiring properties valued at $375 million, which included significant assets in Miami and Boston. Additionally, RPT successfully disposed of properties worth $282.9 million. The company boasts no debt maturing until 2025, having effectively managed its balance sheet and interest rate exposure, securing lower rates through strategic refinancing. Overall, RPT's proactive measures have fortified its cash flows and liquidity.

Positive

• Completed $1.2 billion in capital markets activity, enhancing liquidity and reducing risk.
• Acquired properties worth $375 million, diversifying the portfolio into robust markets.
• No debt maturing until 2025, significantly lowering interest rate exposure.

Negative

• None.

NEW YORK, Jan. 10, 2023 (GLOBE NEWSWIRE) -- RPT Realty (NYSE:RPT) (“RPT” or the “Company”) announced today investment and capital markets activity for the quarter and year ended December 31, 2022.

“RPT continued to improve the strength of its cash flows through its investment and capital markets activities,” said Brian Harper, President and Chief Executive Officer. “We diversified the portfolio into strong and vibrant markets like Miami and Boston by capitalizing on the power of our three investment platforms. Also, we were opportunistic with our balance sheet management, completing $1.2 billion of total capital markets activity in 2022 resulting in longer duration, higher liquidity and lower floating rate exposure.”

2022 Investment Activity

For the full year 2022, the Company through its three strategic investment platforms, closed on third-party acquisitions totaling $375.0 million or $223.4 million at the Company’s pro-rata share. The Company also closed on dispositions and contributions into its two strategic joint venture platforms totaling $282.9 million or $197.7 million at the Company’s pro-rata share.

During the fourth quarter 2022, the Company closed on the contribution of two wholly-owned properties into its grocery-anchored joint venture platform for a total contract price of $162.7 million, retaining a 51.5% stake in both properties. The properties include The Shops on Lane Avenue in the Columbus market valued at $80.8 million and Troy Marketplace in the Detroit market valued at $81.9 million. Proceeds were used to fund the Company’s share of the Mary Brickell Village acquisition in the Miami market that closed in the third quarter 2022.

2022 Third-Party Acquisitions

Property Name		Closing Date	Metro Market	GLA	Contract Price	Pro-rata Contract Price
				(in thousands)	(in millions)	(in millions)
RPT Platform
	The Crossings	4/4/22	Boston	510	$104.0	$104.0
	Brookline Village	6/7/22	Boston	11	5.0	5.0
Total RPT				521	$109.0	$109.0
R2G Platform
	Mary Brickell Village	7/7/22	Miami	199	$216.0	$111.2
Total R2G				199	$216.0	$111.2
RGMZ Platform
	Single-Tenant Property	4/1/22	Jackson	2	$2.2	$0.1
	Ansonia Landing	5/3/22	New Haven-Milford	91	14.0	0.9
	Walgreens Portfolio	5/25/22	Various	71	33.8	2.2
Total RGMZ				164	$50.0	$3.2
Total Acquisitions				884	$375.0	$223.4

2022 Dispositions and Contributions

Property Name		Closing Date	Metro Market	GLA	Contract Price	Pro-rata Contract Price
				(in thousands)	(in millions)	(in millions)
RPT Dispositions
	Rivertowne Square	6/7/22	Miami	144	$18.8	$18.8
	Tel-Twelve	7/21/22	Detroit	194	45.0	45.0
	Mount Prospect Plaza	8/18/22	Chicago	228	34.6	34.6
Total RPT Dispositions				566	$98.4	$98.4
RPT Contributions to R2G
	The Shops on Lane Avenue	10/27/22	Columbus	184	$80.8	$39.2
	Troy Marketplace	10/27/22	Detroit	249	81.9	39.7
Total RPT Contributions to R2G				433	$162.7	$78.9
RPT Contributions to RGMZ
	2 Income Producing Properties	3/22/22	Various	132	$11.6	$10.8
	1 Income Producing Property	9/8/22	Boston	55	10.2	9.6
Total RPT Contributions to RGMZ				187	$21.8	$20.4
Total Dispositions & Contributions				1,186	$282.9	$197.7

2022 Capital Market Activities

“RPT demonstrated its proactive balance sheet management by issuing debt and equity in early 2022 when cost of capital was low and refinancing its unsecured credit facility ahead of the dislocation in the capital markets that occurred in the fall,” said Michael Fitzmaurice, Executive Vice President, Chief Financial Officer. “At the end of 2022, the Company had no debt maturing until 2025 and had fixed all remaining term loan debt through maturity, significantly reducing RPT’s exposure to the impact of rising interest rates.”

For the full year 2022, the Company, through its three strategic platforms, raised and closed on $1.2 billion of gross capital, comprised of an $810 million amended and restated credit facility, a $350 million refinancing of its RGMZ acquisition revolver, $52 million of R2G mortgage debt and $18 million of a forward equity issuance under its at-the-market equity distribution program (“ATM”).

Fourth Quarter 2022 Capital Market Highlights

• In December, the Company opportunistically executed forward starting swaps covering $160 million of notional value that swap SOFR to a fixed rate of 3.04%, consisting of $60 million fixed at 3.35% that starts in March 2023, $50 million fixed at 2.87% that starts in November 2024 and $50 million fixed at 2.86% that starts in January 2025. With these swaps, the Company has fixed the rate on the SOFR component of all outstanding term loan debt through their respective maturities.
• In December, the Company settled 1.2 million common shares that were previously offered and sold on a forward basis under its ATM at a weighted average gross price of $13.85 per share. The Company currently has $133 million available for issuance under the ATM.
• In October, the Company closed on the repayment of a $27 million mortgage secured by The Shops on Lane Avenue, eliminating all debt maturities until 2025.
  

RPT Realty

RPT Realty owns and operates a national portfolio of open-air shopping destinations principally located in top U.S. markets. The Company's shopping centers offer diverse, locally-curated consumer experiences that reflect the lifestyles of their surrounding communities and meet the modern expectations of the Company's retail partners. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange (the “NYSE”). The common shares of the Company, par value $0.01 per share are listed and traded on the NYSE under the ticker symbol “RPT”. As of September 30, 2022, the Company's property portfolio (the "aggregate portfolio") consisted of 46 wholly-owned shopping centers, 11 shopping centers owned through its grocery-anchored joint venture, and 48 retail properties owned through its net lease joint venture, which together represent 15.0 million square feet of gross leasable area. As of September 30, 2022, the Company’s pro-rata share of the aggregate portfolio was 94.0% leased. For additional information about the Company please visit rptrealty.com.

Company Contact:

Vin Chao, Managing Director - Finance and Investments
19 W 44th St. 10th Floor, Ste 1002
New York, New York 10036
vchao@rptrealty.com
(212) 221-1752

FAQ

What was the total capital market activity of RPT in 2022?

RPT Realty completed a total capital market activity of $1.2 billion in 2022.

How much did RPT invest in third-party acquisitions in 2022?

RPT invested $375 million in third-party acquisitions in 2022.

What properties did RPT acquire in Miami and Boston?

RPT acquired properties in Miami and Boston, contributing to a diversified portfolio.

When does RPT have debt maturing until?

RPT has no debt maturing until 2025.

What was the value of RPT's 2022 dispositions?

RPT completed dispositions worth $282.9 million in 2022.