RPT(US:RPT)2023-05-04 17:46Property Portfolio and Leasing - As of March 31, 2023, the company's property portfolio consisted of 43 wholly-owned shopping centers, 13 shopping centers owned through a grocery-anchored joint venture, and 49 retail properties owned through a net lease joint venture, totaling 14.9 million square feet of GLA[106]. - The company's pro-rata share of the aggregate portfolio was 93.3% leased as of March 31, 2023[106]. - Approximately 66% of existing leases are triple net leases, allowing the company to recover operating expenses, with 97% of leases expected to recover increases in operating expenses during inflationary periods[108]. - The company reported a total of 67 leasing transactions during the three months ended March 31, 2023, with a total square footage of 506,118 and a base rent of $15.06 per square foot[115]. - The company derives 96.5% of its multi-tenant retail annualized base rent from the top 40 national markets, including cities like Boston, Atlanta, and Detroit[107]. - The company has long-term lease agreements with 7% - 13% of leases expiring each year over the next three years, allowing for potential rent resets to market rates[111]. Financial Performance - Total revenue for the three months ended March 31, 2023, decreased by $3.8 million, or 6.8%, compared to the same period in 2022, totaling $52.2 million[133]. - Funds from operations (FFO) available to common shareholders for the three months ended March 31, 2023, was $21.4 million, compared to $24.1 million for the same period in 2022, representing a decrease of approximately 11.3%[179]. - Operating FFO available to common shareholders for the same period was $24.3 million, slightly up from $24.1 million in 2022, indicating a marginal increase of about 0.8%[179]. - The company reported a net loss available to common shareholders of $0.4 million for the three months ended March 31, 2023, compared to a net income of $4.1 million in the same period of 2022[179]. - The market price per common share decreased from $13.77 in 2022 to $9.51 in 2023, reflecting a decline of approximately 30.5%[171]. - Same Property NOI for the three months ended March 31, 2023, includes 39 consolidated operating properties, with no new acquisitions in the same period[181]. - Same Property NOI for Q1 2023 was $36,918,000, representing a 3.8% increase from $35,581,000 in Q1 2022[183]. - Period-end occupancy remained stable at 91.2% for both Q1 2023 and Q1 2022[183]. Expenses and Costs - The company’s general and administrative expenses are expected to increase due to rising inflation rates impacting compensation and professional service fees[109]. - General and administrative expenses increased by $1.0 million, or 11.6%, primarily due to one-time employee termination benefits[138]. - Non-recoverable operating expenses increased by $0.2 million, or 7.8%, primarily due to increased property-related employee compensation[136]. - General and administrative expenses for Q1 2023 were $9,315,000, an increase from $8,348,000 in Q1 2022[183]. Debt and Liquidity - As of March 31, 2023, variable-rate borrowings accounted for 4% of total debt, limiting short-term exposure to interest rate increases[110]. - The company aims to maintain a strong, flexible, and investment-grade balance sheet, with low leverage and high liquidity[108]. - As of March 31, 2023, net debt was $904.2 million, reflecting a net debt to total market capitalization of 49.3%, up from 40.3% a year earlier[117]. - The company had $861.6 million of debt outstanding as of March 31, 2023, including $511.5 million in senior unsecured notes and $310.0 million in unsecured term loan facilities[155]. - The company has $463.0 million of unused capacity under its $500.0 million unsecured revolving credit facility as of March 31, 2023[144]. - The company had derivative instruments with an aggregate notional amount of $310 million as of March 31, 2023, with fixed interest rates ranging from 1.17% to 3.36%[185]. - A 100 basis point increase in interest rates would decrease the fair value of total outstanding debt by approximately $19.7 million as of March 31, 2023[184]. Capital Expenditures and Growth Strategy - For the remainder of 2023, the company anticipates capital expenditures between $40.0 million and $50.0 million, with ongoing expenditures of $27.0 million to $32.0 million and discretionary expenditures of $13.0 million to $18.0 million[169]. - The company plans to pursue growth through strategic acquisitions of attractively priced open-air shopping centers and redevelopment of existing properties[162]. - The company has entered into agreements for construction activities with an aggregate remaining cost of approximately $6.6 million as of March 31, 2023[167]. Market Capitalization and Shareholder Returns - As of March 31, 2023, the total market capitalization was $1.8 billion, down from $2.2 billion in 2022, reflecting a decrease of approximately 18.7%[171]. - The company intends to maintain a quarterly common dividend of at least $0.14 per share, having declared this amount for the quarter ending March 31, 2023[152][153]. - The company had 85.6 million common shares outstanding as of March 31, 2023, an increase from 84.2 million in 2022[171].