Wed. Dec 11th, 2019

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 Current Change: RPT Realty (NYSE:RPT) 

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RPT Realty (NYSE:RPT) (the “Company”) declared newly its financial and operating results for the quarter finished September 30, 2k19.

“Our 3rd-quarter results again exceeded our projections, which is a direct reflection of the positive changes that have been implemented at RPT since June of last year,” said Brian Harper, President and Chief Executive Officer. “The improvements we have made across the platform are clearly evident in our year-to-date similar property NOI growth of 4.40 percent and growth of 4.70 percent for the 3rd-quarter. In October, we obtained commitments for our $660.00M credit facility which, upon close, will proactively address our maturities over the next few years while capitalizing on the current low interest rate environment. With strong tailwinds from our 2k19 leasing activity and our near term financing needs addressed, we head into 2k20 with great confidence and strong visibility into our business.”

FINANCIAL RESULTS

Net income attributable to common shareholders for the 3rd-quarter 2k19 of $3.80M, or $0.050 for each diluted share, contrast to $8.40M, or $0.100 for each diluted share for the similar duration in 2k18.

FFO for the 3rd-quarter 2k19 of $24.70M, or $0.280 for each diluted share, contrast to $26.00M, or $0.290 for each diluted share for the similar duration in 2k18. The change in FFO was mainly driven by the Company’s non-core asset disposition program that concluded in the 1st-quarter 2k19 that was partially offset by a decline in administration reorganization and severance costs associated with recent executive administration changes.

Operating FFO for the 3rd-quarter 2k19 of $25.10M, or $0.280 for each diluted share, contrast to $28.40M or $0.320 for each diluted share for the similar duration in 2k18. The change in Operating FFO was mainly driven by the Company’s non-core asset disposition program that concluded in the 1st-quarter 2k19. Operating FFO for the 3rd-quarter 2k19 excludes certain net non-recurring costs that totalled $0.40M, mainly attributable to executive administration reorganization costs tied to a performance award related to the Company’s former Chief Executive Officer.

OPERATING RESULTS

Similar property NOI during the 3rd-quarter 2k19 increased 4.70 percent contrast to the similar duration in 2k18. Similar property NOI growth for the 3rd-quarter 2k19 was mainly driven by higher base rent of 3.50 percent.

During the 3rd-quarter 2k19, the Company signed 54 leases totalling 227,516 square feet. Blended re-leasing spreads on comparable leases were 7.10 percent with an Annualized Base Rent (“ABR”) of $18.780 for each square foot. Re-leasing spreads on comparable new and renewal leases were 7.50 percent and 7.10 percent, respectively.

As of September 30, 2k19, the Company had $3.30M of signed not begind ABR that is planned to begin over the next twelve months.

BALANCE SHEET

The Company finished the 3rd-quarter 2k19 with liquidity of $398.10M, counting $48.20M in cash equivalents and restricted cash and $349.80M of availability on its unsecured revolving credit facility. At September 30, 2k19, the Company had about $934.20M of merged debt and finance lease obligations, which resulted in a net debt to annualized proforma adjusted EBITDA ratio of 6.60x. Merged debt had a weighted average interest rate of 4.080 percent and a weighted average maturity, apart from planned amortization, of 4.60 years.

DISPOSITION UPDATE

On August 16, 2k19, the Company sold its last remaining joint venture property, Nora Plaza, in Indianapolis, Indiana for gross sales proceeds of $29.00M. The company received $2.00M for its 7.0 percent share in the property.

DIVIDEND

On October 29, 2k19, the Company’s Board of Trustees declared a 4th-quarter 2k19 regular cash dividend of $0.220 for each common share. The Board of Trustees also approved a 4th-quarter 2k19 Series D convertible preferred share dividend of $0.90625 for each share.  The dividends for the duration October 1, 2k19 through December 31, 2k19 are payable on January 2, 2k19 to shareholders of record on December 20, 2k19.

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