RPT(RPT) - 2022 Q1 - Quarterly Report

Property Portfolio and Leasing - As of March 31, 2022, the company's property portfolio consisted of 47 wholly-owned shopping centers, 10 shopping centers through a grocery-anchored joint venture, and 40 retail properties through a net lease joint venture, totaling 14.6 million square feet of GLA[111]. - The company's pro-rata share of the aggregate portfolio was 93.2% leased as of March 31, 2022[111]. - The company's multi-tenant operating portfolio had an overall leased percentage of 93.2% and an occupied percentage of 90.6% as of March 31, 2022[124]. - Approximately 70% of existing leases were triple net leases, allowing the company to recover operating expenses from tenants[118]. - The company is focused on remerchandising and redeveloping existing properties to enhance tenant credit and improve the consumer experience[117]. Financial Performance - Total revenue for the three months ended March 31, 2022, increased by $6.0 million, or 12.0$56.1 million[141]. - Net income available to common shareholders for the three months ended March 31, 2022, was $4,101,000, a decrease of 73.0$15,235,000 in 2021[186]. - FFO available to common shareholders and dilutive securities increased to $25,908,000 for Q1 2022, up 60.0$16,115,000 in Q1 2021[186]. - Same Property NOI for the three months ended March 31, 2022, was $35,206,000, representing a 9.0$32,046,000 in 2021[190]. - Operating FFO available to common shareholders and dilutive securities for Q1 2022 was $24,079,000, compared to$16,054,000 in Q1 2021, marking a 50.0% increase[186]. Debt and Capital Structure - The company reported a net debt of $888.4 million as of March 31, 2022, with a net debt to total market capitalization ratio of 40.3$852.9 million of debt outstanding as of March 31, 2022, consisting of $511.5 million in senior unsecured notes and$310.0 million in unsecured term loan facilities[163]. - The company anticipates using net proceeds from property sales to reduce outstanding debt and support growth initiatives[155]. - The company has access to $350.0 million of unused capacity under its unsecured revolving credit facility as of March 31, 2022[153]. - The company entered into forward sale agreements to sell an aggregate of 1,226,271 shares at a weighted average offering price of$13.85 during the three months ended March 31, 2022[129]. Expenses and Cash Flow - General and administrative expenses rose by $1.0 million, or 13.3$8.3 million for the three months ended March 31, 2022, primarily due to higher wages and payroll-related expenses[147]. - Net cash provided by operating activities decreased by $5.0 million to$13.9 million for the three months ended March 31, 2022, compared to $18.9 million in 2021[157][158]. - Net cash provided by investing activities was$6.0 million for the three months ended March 31, 2022, down from $24.0 million in the same period in 2021, primarily due to a decrease in proceeds from real estate sales[157][158]. - Interest expense decreased by$1.1 million, or 11.6%, to $8.3 million for the three months ended March 31, 2022, due to a decrease in average outstanding debt and a lower weighted average interest rate[150]. Market and Economic Conditions - The company anticipates that inflation will not significantly adversely affect its net operating income due to the structure of its leases[118]. - A 100 basis point increase in interest rates is estimated to decrease the fair value of total outstanding debt by approximately$25.8 million as of March 31, 2022[191]. - The company has exposure to interest rate risk on variable rate debt obligations and may use interest rate swap agreements to manage this risk[191]. - The company does not anticipate that the discontinuation of LIBOR will affect its ability to borrow or maintain outstanding borrowings[195]. Future Outlook and Strategy - The company intends to pursue growth through strategic acquisitions and redevelopment of existing properties, while also selectively disposing of maximized value properties[171]. - The company anticipates capital expenditures between $40,000,000 and$50,000,000 for the remainder of 2022, including $5,300,000 in construction commitments[178]. - The company is monitoring the transition from LIBOR to ensure minimal disruption to its financial operations[194].