RPT(US:RPT)2023-08-03 17:30Property Portfolio and Leasing - As of June 30, 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[111]. - The company's pro-rata share of the aggregate portfolio was 93.2% leased as of June 30, 2023[111]. - The company reported a total of 155 leasing transactions for 1,033,558 square feet, with a base rent of $17.40 per square foot[122]. - 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[113]. - The company has long-term lease agreements with tenants, with 7% - 13% of leases expiring each year over the next three years, allowing for potential rent resets[118]. Financial Performance - Total revenue for the three months ended June 30, 2023, decreased by $4.2 million, or 7.7%, compared to the same period in 2022, primarily due to the impact of properties disposed[140][141]. - Total revenue for the six months ended June 30, 2023 decreased by $8.1 million, or 7.3%, compared to the same period in 2022, totaling $103.3 million[149]. - Net income available to common shareholders for Q2 2023 was $(1,644) thousand, a decrease from $5,120 thousand in Q2 2022[196]. - The company reported a net loss of $(1,644) thousand for the first half of 2023, compared to a net income of $9,221 thousand for the same period in 2022[196]. - Funds from Operations (FFO) available to common shareholders for Q2 2023 was $24,113 thousand, compared to $21,972 thousand in Q2 2022, representing an increase of 5.2%[196]. - Operating FFO available to common shareholders and dilutive securities for the first half of 2023 was $47,776 thousand, down from $49,382 thousand in the first half of 2022[196]. Expenses and Cash Flow - Recoverable operating expenses increased by $0.4 million, or 6.0%, for the three months ended June 30, 2023, primarily due to higher common area maintenance expenses[142]. - Non-recoverable operating expenses rose by $0.2 million, or 9.9%, for the three months ended June 30, 2023, mainly due to increased property-related employee compensation[143]. - General and administrative expenses increased by $1.3 million, or 7.5%, primarily due to one-time employee termination benefits and higher stock-based compensation[156]. - Net cash provided by operating activities increased by $9.0 million, totaling $45.9 million for the six months ended June 30, 2023[166]. - Net cash used in investing activities decreased by $93.1 million compared to the same period in 2022[168]. Debt and Capital Structure - Net debt as of June 30, 2023, was $898.6 million, with a net debt to total market capitalization ratio of 46.9%, down from 51.2% a year earlier[124]. - The Company had $133.0 million of common shares remaining available for issuance under the Current ATM Program as of June 30, 2023[125]. - As of June 30, 2023, the company had $853.4 million in outstanding debt, including $511.5 million in senior unsecured notes and $310.0 million in unsecured term loan facilities[174]. - The interest rates on the senior unsecured notes and term loan facilities range from 2.50% to 4.74%, with maturity dates from June 2025 to November 2031[174]. - The company has $1.1 billion in total contractual obligations, including scheduled amortization and interest payments[182]. Inflation and Operating Expenses - Approximately 66% of existing leases are triple net leases, allowing the company to recover operating expenses, mitigating some inflation impacts[115]. - The company expects to recover increases in operating expenses from approximately 97% of existing leases during inflationary periods[115]. - Inflationary pressures may increase general and administrative expenses, impacting results of operations and operating cash flows over time[116]. Strategic Growth and Investments - The company plans to pursue growth through strategic acquisitions of attractively priced open-air shopping centers and disciplined capital recycling strategies[114]. - The company plans to pursue growth through strategic acquisitions of attractively priced open-air shopping centers and redeveloping existing properties[181]. - The company anticipates capital expenditures between $20.0 million and $30.0 million for the remainder of 2023, with ongoing expenditures of $13.0 million to $18.0 million and discretionary expenditures of $7.0 million to $12.0 million[188]. Interest Rate and Fair Value - A 100 basis point increase in interest rates would decrease the fair value of the company's total outstanding debt by approximately $18.3 million as of June 30, 2023[201]. - The company has entered into 11 interest rate swap agreements with an aggregate notional amount of $310.0 million to convert floating rate corporate debt to fixed rate debt[176]. - The fixed-rate debt obligations total $824.381 million, with a weighted average interest rate of 3.7%[202]. - The company has variable-rate debt obligations amounting to $29.000 million, with an average interest rate of 6.3%[202].