RPT(US:RPT)2022-11-03 18:58Property Portfolio - As of September 30, 2022, the company's property portfolio consisted of 46 wholly-owned shopping centers, 11 shopping centers owned through a grocery-anchored joint venture, and 48 retail properties owned through a net lease joint venture, totaling 15.0 million square feet of GLA [120]. - The company's pro-rata share of the aggregate portfolio was 94.0% leased as of September 30, 2022 [120]. - The company's total operating portfolio included 105 properties with a total GLA of 14,980 thousand square feet, with an overall leased percentage of 94.0% [133]. - The average base rent per square foot across the total portfolio was $16.32 [133]. Lease Agreements - The company derived 96.0% of its annualized base rent from the top 40 national markets, including cities like Boston, Atlanta, and Detroit [124]. - Approximately 67% of existing leases were triple net leases, allowing the company to recover operating expenses from tenants [127]. - The company reported that 6% to 10% of its long-term lease agreements will expire each year over the next three years, allowing for potential rent resets to market rates [130]. Financial Performance - Total revenue for the three months ended September 30, 2022, decreased by $0.4 million, or (0.8)%, compared to the same period in 2021, primarily due to a $5.5 million decrease related to properties disposed since the prior period [151]. - Total revenue for the nine months ended September 30, 2022, increased by $8.6 million, or 5.5%, to $166.1 million compared to $157.5 million in the same period in 2021 [164]. - Net income for the three months ended September 30, 2022, was $13.23 million, a decrease of 49.7% compared to $26.30 million in the same period of 2021 [215]. - Net income available to common shareholders for the three months ended September 30, 2022, was $11,299,000, down from $24,026,000 in 2021, indicating a decline of 53.0% [221]. Expenses and Costs - General and administrative expenses increased by $2.0 million, or 27.9%, for the three months ended September 30, 2022, primarily due to higher legal and professional fees [158]. - Recoverable operating expenses increased by $0.8 million, or 13.8%, for the three months ended September 30, 2022, primarily due to higher common area maintenance expenses [154]. - Non-recoverable operating expenses increased by $0.3 million, or 12.4%, for the three months ended September 30, 2022, primarily due to expenses associated with properties acquired since the prior period [155]. - General and administrative expense rose by $4.1 million, or 18.4%, to $26.4 million for the nine months ended September 30, 2022, mainly due to higher wages and professional fees [170]. Debt and Financing - As of September 30, 2022, the company had net debt of $993.7 million, reflecting a net debt to total market capitalization ratio of 57.5%, up from 43.6% a year earlier [137]. - The company had $100.0 million outstanding on its revolving credit facility as of September 30, 2022, with $400.0 million of unused capacity under its $500.0 million facility [178]. - The company recorded a gain on the sale of real estate of $11.1 million for the three months ended September 30, 2022, down from $22.2 million in the prior year [151]. - The company anticipates using net proceeds from property sales to reduce outstanding debt and support growth initiatives [180]. Joint Ventures and Acquisitions - The company has entered two strategic joint ventures over the past three years, focusing on major metropolitan U.S. markets in the Northeast and Southeast regions [124]. - The company closed two shopping center acquisitions for an aggregate amount of $110.2 million and three dispositions for $98.4 million during the nine months ended September 30, 2022 [135]. - Total properties increased from 86 in 2021 to 105 in 2022, with acquisitions rising from 5 to 19 in the RGMZ retail properties segment [219]. Shareholder Returns - The company 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 [187]. - Preferred share dividends for the three months ended September 30, 2022, remained constant at $1.68 million compared to the same period in 2021 [215]. Market and Economic Conditions - The company expects to recover increases in operating expenses from approximately 97% of existing leases during inflationary periods [127]. - A 100 basis point change in interest rates would impact future earnings and cash flows by approximately $1.0 million annually [222]. - The average interest rate for fixed-rate debt was 3.6% as of September 30, 2022, while the average interest rate for variable-rate debt was 3.9% [223]. - The company expects all LIBOR settings relevant to its operations to cease publication after June 30, 2023, necessitating a transition to alternative rates [225].