RPT(US:RPT)2022-08-04 18:47Property Portfolio and Leasing - As of June 30, 2022, the company's property portfolio consisted of 47 wholly-owned shopping centers, 10 shopping centers through a grocery-anchored joint venture, and 47 retail properties through a net lease joint venture, totaling 14.9 million square feet of GLA[116] - The company's pro-rata share of the aggregate portfolio was 93.3% leased as of June 30, 2022[116] - 96.1% of the company's annualized base rent was derived from the top 40 national markets, including cities like Boston, Atlanta, and Detroit[120] - Approximately 68% of existing leases were triple net leases, allowing the company to recover operating expenses from tenants[123] - The company reported that 6% to 11% of long-term lease agreements with tenants will expire each year over the next three years, allowing for potential rent resets[126] - The company's multi-tenant operating portfolio had an overall leased percentage of 93.3% and an occupied percentage of 90.3% as of June 30, 2022[129] Financial Performance - Total revenue for the three months ended June 30, 2022, increased by $3.1 million, or 5.9%, compared to the same period in 2021, primarily due to properties acquired since the prior period[147] - Total revenue for the six months ended June 30, 2022, increased by $9.1 million, or 8.9%, compared to the same period in 2021, reaching $111.4 million[159] - Net income available to common shareholders for the three months ended June 30, 2022, was $5,120,000, a decrease of 85.2% compared to $34,706,000 for the same period in 2021[205] - FFO available to common shareholders for the three months ended June 30, 2022, was $20,162,000, an increase of 10.0% from $18,326,000 in the same period of 2021[205] - Operating FFO available to common shareholders and dilutive securities for the three months ended June 30, 2022, was $25,303,000, representing a 41.5% increase from $17,878,000 in the same period of 2021[205] - Same Property NOI for the first half of 2022 was $67.38 million, up 7.5% from $62.80 million in the same period of 2021[211] Debt and Financing - Net debt as of June 30, 2022, was $989.8 million, reflecting a net debt to total market capitalization ratio of 51.2%, up from 41.4% at June 30, 2021[133] - As of June 30, 2022, the company had $964.5 million in total debt, including $511.5 million in senior unsecured notes and $310.0 million in unsecured term loan facilities, with interest rates ranging from 2.46% to 4.74%[182] - The company has ten interest rate swap agreements in effect for an aggregate notional amount of $310.0 million, converting floating rate corporate debt to fixed rate debt[184] - Total fixed-rate debt amounted to $852.53 million with a weighted average interest rate of 3.7%[213] - Variable-rate debt was $112 million with an average interest rate of 2.8%[213] - A 100 basis point increase in interest rates would decrease the fair value of total outstanding debt by approximately $23.3 million as of June 30, 2022[212] Expenses and Costs - General and administrative expenses increased by $1.1 million, or 14.2%, for the three months ended June 30, 2022, due to higher wages and payroll-related expenses[154] - Real estate tax expense decreased by $1.6 million, or 18.0%, for the three months ended June 30, 2022, due to lower net expenses at existing properties[149] - Recoverable operating expenses increased by $1.3 million, or 23.4%, for the three months ended June 30, 2022, primarily due to properties acquired since the prior period[150] - Depreciation and amortization expense increased by $2.6 million, or 15.5%, for the three months ended June 30, 2022, primarily due to properties acquired since the prior period[152] - Interest expense decreased by $1.6 million, or 8.7%, to $17.1 million for the six months ended June 30, 2022, due to a 30 basis point decrease in the weighted average interest rate[168] Strategic Initiatives - The company aims to pursue growth through strategic acquisitions of attractively priced open-air shopping centers and disciplined capital recycling strategies[121] - The company intends to pursue growth through strategic acquisitions of open-air shopping centers and redevelopment of existing properties, while selectively disposing of maximized value properties[189] - The company is focused on enhancing tenant relationships and reducing operating expenses to drive rent and occupancy[121] COVID-19 Impact - The company continues to monitor the impact of COVID-19 on its business and tenants, with current rent collections approaching pre-pandemic levels[119] Shareholder Returns - The Board of Trustees declared a quarterly cash dividend of $0.13 per common share and $0.90625 per Series D Preferred Share, maintaining a policy to distribute at least 90% of REIT taxable income[180] Capital Expenditures and Investments - The company plans to spend between $25.0 million and $35.0 million on capital expenditures for the remainder of 2022, focusing on leasing costs and targeted remerchandising[197] - The company closed on two shopping center acquisitions for an aggregate amount of $110.2 million during the six months ended June 30, 2022[131] - Net cash used in investing activities increased by $45.9 million to $103.9 million for the six months ended June 30, 2022, compared to $58.0 million in 2021[177] Market Conditions and Future Outlook - The transition from LIBOR to SOFR is expected to impact borrowing costs, with potential increases due to differences between the two rates[216] - The company has material contracts indexed to USD-LIBOR, which may require substantial negotiation for transitioning to alternative rates[215] - The discontinuation of LIBOR will not affect the company's ability to borrow or maintain existing borrowings, but may lead to higher interest costs if contracts are converted to SOFR[216]