UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2012
RETAIL PROPERTIES OF AMERICA, INC.
(exact name of registrant as specified in charter)
Maryland |
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001-35481 |
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42-1579325 |
(State or other |
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(Commission File Number) |
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(IRS Employer |
2901 Butterfield Road, Oak Brook, Illinois |
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60523 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code: (630) 218-8000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
The information in this Item 2.02 Results of Operations and Financial Condition is being furnished. Such information, including Exhibits 99.1 and 99.2 hereto, shall not be deemed filed for any purpose, including for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that Section. The information in this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.
On August 6, 2012, Retail Properties of America, Inc. (the Company) issued a press release announcing its financial results for the quarter ended June 30, 2012. A copy of this press release as well as a copy of the supplemental financial information referred to in the press release are made available on the Companys website and are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following Exhibits are included in this Report:
99.1 |
Press Release dated August 6, 2012. |
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99.2 |
Retail Properties of America, Inc. Supplemental Financial Information for the quarter ended June 30, 2012. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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RETAIL PROPERTIES OF AMERICA, INC. | |
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(Registrant) | |
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By: |
/s/ Angela M. Aman |
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Angela M. Aman |
Date: August 6, 2012 |
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Executive Vice President, Chief Financial Officer and Treasurer |
Exhibit 99.1
RETAIL PROPERTIES OF AMERICA, INC. REPORTS
SECOND QUARTER RESULTS
Oak Brook, IL August 6, 2012 Retail Properties of America, Inc. (NYSE: RPAI) today reported financial and operating results for the quarter and six months ended June 30, 2012.
FINANCIAL RESULTS
For the quarter ended June 30, 2012, Retail Properties of America reported:
■ Operating Funds From Operations (Operating FFO) of $51.0 million, or $0.23 per share, compared to $45.0 million, or $0.23 per share for the same period in 2011;
■ Funds From Operations (FFO) of $70.2 million, or $0.31 per share, compared to $49.0 million, or $0.25 per share for the same period in 2011;
■ Net income of $17.7 million, or $0.08 per share, compared to a net loss of $13.7 million, or $(0.07) per share, for the same period in 2011.
For the six months ended June 30, 2012, the Company reported:
■ Operating FFO of $100.1 million, or $0.48 per share, compared to $85.7 million, or $0.45 per share for the same period in 2011;
■ FFO of $118.6 million, or $0.56 per share, compared to $100.5 million, or $0.52 per share, for the same period in 2011;
■ Net income of $1.4 million, or $0.01 per share, compared to a net loss of $53.7 million, or $(0.28) per share, for the same period in 2011.
OPERATING RESULTS
For the quarter ended June 30, 2012, Retail Properties of Americas results for its consolidated portfolio were as follows:
■ 4.1% increase in total same store net operating income (NOI) over the comparable period in 2011;
■ Total portfolio percent leased, including leases signed but not commenced: 91.6% at June 30, 2012, up 20 basis points from 91.4% at March 31, 2012 and up 160 basis points from 90.0% at June 30, 2011;
■ Retail portfolio percent leased, including leases signed but not commenced: 91.0% at June 30, 2012, up 40 basis points from 90.6% at March 31, 2012 and up 230 basis points from 88.7% at June 30, 2011;
■ 707,000 square feet of retail leasing transactions, comprised of 148 new and renewal leases; and,
■ Generated positive comparable leasing spreads, including the Companys pro rata share of joint ventures, on a cash basis, with new leases at 7.5% and renewal leases at 4.3%, for a blended spread of 5.0%.
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Retail Properties of America, Inc. | |||||||
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T: 855.646.7724 |
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www.rpai.com |
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2901 Butterfield Road |
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Oak Brook, IL 60523 |
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Mr. Steven P. Grimes, president and CEO, stated, During the second quarter, the Company generated significant year-over-year operational improvements with strong leasing activity, increased portfolio occupancy, and robust same store NOI growth. We are encouraged by our progress, and with our recent equity offering, we believe we are well positioned to capture the embedded growth in our portfolio, despite the economic cross-currents. We remain focused on increasing long-term shareholder value through active asset management and prudent capital recycling.
CAPITAL MARKETS AND BALANCE SHEET ACTIVITY
PUBLIC EQUITY OFFERING
On April 11, 2012, Retail Properties of America closed on a public offering of 36.57 million shares of common stock (including the overallotment option), raising $292.6 million in gross proceeds, or $266.5 million in net proceeds. This transaction also resulted in the listing of the Companys Class A common stock on the NYSE under the symbol RPAI. The Company utilized the net proceeds from this transaction to repurchase its partners interest in a consolidated joint venture for $55.4 million, to repay a $94.3 million mortgage loan on a pool of six cross-collateralized properties, and to repay $116.8 million of outstanding amounts under its senior unsecured revolving line of credit.
FINANCINGS
During the quarter, Retail Properties of America closed on $134.0 million of mortgage loan financings, secured by three properties. The financing activity during the quarter was completed at a weighted average interest rate of 4.31% and a weighted average term of 8.7 years. The Company also made repayments on mortgages payable of $223.4 million, excluding amortization, and received forgiveness of debt of $23.6 million. The mortgages repaid during the quarter had a weighted average interest rate of 6.39%.
BALANCE SHEET
As of June 30, 2012, the Company had $3.1 billion of consolidated indebtedness outstanding at a weighted average interest rate of 5.87% and a weighted average maturity of 5.5 years.
Subsequent to quarter end, the Company entered into an interest rate swap transaction to convert the variable rate portion of $300 million of floating rate debt to a fixed rate of 0.53875% from July 31, 2012 through February 24, 2016, the maturity date of the Companys unsecured term loan. The margin on the unsecured term loan is based on a leverage grid and ranges from 1.75% to 2.50%. The applicable margin was 2.50% as of June 30, 2012.
INVESTMENT ACTIVITY
On April 10, 2012, the Company transferred one office property that was subject to a matured mortgage to the lender as a deed in lieu of foreclosure and received debt forgiveness of $23.6 million, resulting in a gain of $6.8 million. The Company has one remaining mortgage payable past maturity and continues to pursue an appropriate resolution.
As previously announced, during the second quarter, the Company, through its wholly-owned subsidiaries, completed a multi-year lease extension with Aon Corporation for approximately 819,000 square feet in Lincolnshire, IL. This transaction represents the successful renewal of the largest tenant in the non-core portfolio and the Company expects to market this asset in the near future.
TERMINATED SERVICE AGREEMENTS
During the second quarter of 2012, the Company provided written notice of termination of the following agreements with The Inland Group and its affiliates: investment advisor services, loan servicing, mortgage financing services, communications services, institutional investor relationships services, insurance and risk management services, property tax services, computer services and personnel services. With the exception of the investment advisor agreement termination, which was effective in the second quarter of 2012, these terminations will be effective during the fourth quarter of 2012.
On August 2, 2012, the Company executed a lease for new office space with an external third-party and will relocate its corporate headquarters by year-end 2012.
DIVIDEND
On June 8, 2012, the Board of Directors of Retail Properties of America declared the second quarter distribution of $0.165625 per share, payable on July 10, 2012 to stockholders of record at the close of business on June 29, 2012.
GUIDANCE
Retail Properties of America is increasing guidance for 2012 Operating FFO per share to a range of $0.83 to $0.87 versus prior guidance of $0.80 to $0.86 and improving its 2012 net loss per share guidance to a range of $(0.15) to $(0.11) versus prior guidance of $(0.23) to $(0.17).
WEBCAST AND SUPPLEMENTAL INFORMATION
Retail Properties of Americas management team will hold a webcast, on Tuesday, August 7, 2012 at 10:00 AM EST, to discuss its quarterly financial results and operating performance, business highlights and outlook. In addition, the Company may discuss business and financial developments and trends and other matters affecting the Company, some of which may not have been previously disclosed. To participate in the online webcast on the Companys website please go to www.rpai.com under the investor relations section of the website and follow the directions. A replay of the webcast will be available. To listen to the replay, please go to www.rpai.com under the investor relations section of the website and follow the directions.
The Company has also posted supplemental financial and operating information and other data on the investor relations section of its website.
ABOUT RPAI
Retail Properties of America, Inc. is a fully integrated, self-administered and self-managed real estate company that owns and operates high quality, strategically located shopping centers across 35 states. The Company is one of the largest owners and operators of shopping centers in the United States.
SAFE HARBOR LANGUAGE
The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as may, expect, continue, remains, intend, aim, should, prospects, could, future, potential, believes, plans, likely, anticipate, and probable, or the negative thereof or other variations thereon or comparable terminology, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Companys operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to, general economic, business and financial conditions, changes in the Companys industry and changes in the real estate markets in particular, market demand for and pricing of the Companys common stock, general volatility of the capital and credit markets, competitive and cost factors, the ability of the Company to enter into new leases or renew leases on favorable terms, defaults on, early terminations of or non-renewal of leases by tenants, bankruptcy or insolvency of a major tenant or a significant number of smaller tenants, the effects of declining real estate valuations and impairment charges on the Companys operating results, increased interest rates and operating costs, decreased rental rates or increased vacancy rates, the uncertainties of real estate acquisitions, dispositions and redevelopment activity, the Companys failure to successfully execute its non-core disposition program and capital recycling efforts, the Companys ability to create long-term shareholder value, the Companys ability to manage its growth effectively, the availability, terms and deployment of capital, regulatory changes and other risk factors, including those detailed in the sections of the Companys most recent Form 10-K and Form 10-Qs filed with the SEC titled Risk Factors. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
NON-GAAP FINANCIAL MEASURES
As defined by the National Association of Real Estate Investment Trusts (NAREIT), an industry trade group, FFO means net (loss) income computed in accordance with generally accepted accounting principles (GAAP), excluding gains (or losses) from sales of investment properties, plus depreciation and amortization and impairment charges on investment properties, including adjustments for unconsolidated joint ventures in which the Company holds an interest. The Company has adopted the NAREIT definition in its computation of FFO and believes that FFO, which is a non-GAAP performance measure, provides an additional and useful means to assess the operating performance of real estate investment trusts (REITs). Management believes that, subject to the following limitations, FFO provides a basis for comparing the Companys performance and operations to those of other REITs. Depreciation and amortization related to investment properties for purposes of calculating FFO include loss on lease terminations, which encompasses the write-off of tenant-related assets, including tenant improvements and in-place lease values, as a result of early lease terminations. Loss on lease terminations included in depreciation and amortization for FFO excludes the write-off of tenant-related above and below market lease intangibles that are otherwise included in Loss on lease terminations in the Companys condensed consolidated statements of operations. The Company also reports Operating FFO, which is defined as FFO excluding the impact of gains and losses from the early extinguishment of debt and other items as denoted within the calculation that management does not believe are representative of the operating results of the Companys core business platform. Management considers Operating FFO a meaningful, additional measure of operating performance primarily because it excludes the effects of transactions and other events which management does not consider representative of the operating results of the Companys core business platform. Further, comparison of the Companys presentation of Operating FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in definition and application by such REITs. FFO and Operating FFO are not intended to be alternatives to Net Income as indicators of the Companys performance, nor alternatives to Cash Flows from Operating Activities as determined by GAAP as measures of the Companys capacity to pay dividends. The Company also reports same store NOI. The Company defines NOI as operating revenues (rental income, tenant recovery income, other property income, excluding straight-line rental income, amortization of lease inducements and amortization of acquired above and below market lease intangibles) less property operating expenses (real estate tax expense and property operating expense, excluding straight-line ground rent expense and straight-line bad debt expense). Same store NOI represents NOI from the Companys same store portfolio consisting of 270 operating properties acquired or place in service prior to January 1, 2011, but excluding University Square, the property for which we have ceased making the monthly debt service payment and for which we have attempted to negotiate with the lender, due to the uncertainty of the timing of transfer of ownership of this property. Management believes that NOI and same store NOI are useful measures of the Companys operating performance. Other REITs may use different methodologies for calculating NOI, and accordingly, the Companys NOI may not be comparable to other REITs. Management believes that NOI and same store NOI provide an operating perspective not immediately apparent from GAAP operating income or net (loss) income. Management uses NOI and
same store NOI to evaluate the Companys performance on a property-by-property basis because these measures allow management to evaluate the impact that factors such as lease structure, lease rates and tenant base, which vary by property, have on the Companys operating results. However, these measures should only be used as an alternative measure of the Companys financial performance.
CONTACT INFORMATION |
|
Angela Aman, Chief Financial Officer |
Nikki Saks |
Retail Properties of America, Inc. |
ICR, LLC |
630.586.6533 |
203.682.8289 |
Retail Properties of America, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands, except par value amounts)
(unaudited)
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June 30, |
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December 31, | ||||
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2012 |
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2011 | ||||
Assets |
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Investment properties: |
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Land |
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$ |
1,327,299 |
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$ |
1,334,363 |
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Building and other improvements |
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5,047,625 |
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5,057,252 |
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Developments in progress |
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50,391 |
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49,940 |
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6,425,315 |
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6,441,555 |
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Less accumulated depreciation |
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(1,274,421 |
) |
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(1,180,767 |
) | ||
Net investment properties |
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5,150,894 |
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5,260,788 |
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Cash and cash equivalents |
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102,346 |
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136,009 |
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Investment in marketable securities, net |
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20,034 |
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30,385 |
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Investment in unconsolidated joint ventures |
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56,548 |
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81,168 |
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Accounts and notes receivable (net of allowances of $7,863 and $8,231, respectively) |
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86,810 |
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94,922 |
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Acquired lease intangibles, net |
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152,713 |
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174,404 |
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Other assets, net |
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190,061 |
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164,218 |
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Total assets |
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$ |
5,759,406 |
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$ |
5,941,894 |
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Liabilities and Equity |
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Liabilities: |
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Mortgages and notes payable (includes unamortized premium of $0 and $10,858, respectively, and unamortized discount of $(1,747) and $(2,003), respectively) |
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$ |
2,702,920 |
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$ |
2,926,218 |
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Credit facility |
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430,000 |
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555,000 |
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Accounts payable and accrued expenses |
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98,459 |
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83,012 |
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Distributions payable |
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38,200 |
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31,448 |
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Acquired below market lease intangibles, net |
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78,203 |
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81,321 |
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Other financings |
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- |
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8,477 |
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Co-venture obligation |
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- |
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52,431 |
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Other liabilities |
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70,296 |
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66,944 |
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Total liabilities |
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3,418,078 |
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3,804,851 |
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Redeemable noncontrolling interests |
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- |
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525 |
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Commitments and contingencies |
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Equity (a): |
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Preferred stock, $0.001 par value, 10,000 shares authorized, none issued or outstanding |
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- |
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- |
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Class A common stock, $0.001 par value, 475,000 shares authorized, 85,088 and 48,382 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively |
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85 |
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48 |
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Class B-1 common stock, $0.001 par value, 55,000 shares authorized, 48,518 and 48,382 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively |
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48 |
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48 |
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Class B-2 common stock, $0.001 par value, 55,000 shares authorized, 48,518 and 48,382 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively |
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49 |
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49 |
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Class B-3 common stock, $0.001 par value, 55,000 shares authorized, 48,519 and 48,383 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively |
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49 |
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49 |
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Additional paid-in capital |
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4,704,962 |
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4,427,977 |
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Accumulated distributions in excess of earnings |
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(2,381,858 |
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(2,312,877 |
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Accumulated other comprehensive income |
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16,499 |
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19,730 |
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Total shareholders equity |
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2,339,834 |
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2,135,024 |
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Noncontrolling interests |
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1,494 |
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1,494 |
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Total equity |
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2,341,328 |
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2,136,518 |
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Total liabilities and equity |
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$ |
5,759,406 |
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$ |
5,941,894 |
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(a) |
On March 20, 2012, we effectuated a ten to one reverse stock split of our then outstanding common stock. Immediately following the reverse stock split, we redesignated all of our common stock as Class A common stock. On March 21, 2012, we paid a stock dividend pursuant to which each then outstanding share of our Class A common stock received one share of Class B-1 common stock, one share of Class B-2 common stock and one share of Class B-3 common stock. These transactions are referred to as the Recapitalization. All common stock share amounts and related dollar amounts give retroactive effect to the Recapitalization. |
Retail Properties of America, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per share amounts)
(unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, | ||||||||||||
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2012 |
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2011 |
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2012 |
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2011 | ||||||||
Revenues: |
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Rental income |
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$ |
120,043 |
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$ |
119,853 |
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$ |
240,883 |
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$ |
240,093 |
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Tenant recovery income |
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25,276 |
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24,727 |
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53,737 |
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52,665 |
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Other property income |
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2,806 |
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2,781 |
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5,569 |
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5,597 |
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Total revenues |
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148,125 |
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147,361 |
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300,189 |
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298,355 |
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Expenses: |
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Property operating expenses |
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23,594 |
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24,065 |
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48,722 |
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52,508 |
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Real estate taxes |
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19,341 |
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20,123 |
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39,319 |
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38,979 |
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Depreciation and amortization |
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58,289 |
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58,742 |
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116,719 |
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117,369 |
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Provision for impairment of investment properties |
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1,323 |
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- |
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1,323 |
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- |
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Loss on lease terminations |
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1,177 |
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3,355 |
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|
4,901 |
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|
6,693 |
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General and administrative expenses |
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6,543 |
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5,043 |
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|
11,464 |
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|
11,370 |
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Total expenses |
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110,267 |
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|
111,328 |
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|
222,448 |
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|
226,919 |
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Operating income |
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37,858 |
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|
36,033 |
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|
77,741 |
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|
71,436 |
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Dividend income |
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615 |
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|
522 |
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|
1,480 |
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|
1,198 |
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Interest income |
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19 |
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|
170 |
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|
40 |
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|
350 |
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Gain on extinguishment of debt |
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- |
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|
3,715 |
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|
3,879 |
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|
14,438 |
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Equity in loss of unconsolidated joint ventures, net |
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(1,286 |
) |
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(1,981 |
) |
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(3,604 |
) |
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(4,159 |
) | ||||
Interest expense |
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(40,537 |
) |
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(55,644 |
) |
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(95,263 |
) |
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(116,257 |
) | ||||
Co-venture obligation expense |
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(397 |
) |
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(1,792 |
) |
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(3,300 |
) |
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(3,584 |
) | ||||
Recognized gain on marketable securities |
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7,265 |
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|
277 |
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|
7,265 |
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|
277 |
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Other income (expense), net |
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2,479 |
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|
171 |
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(1,067 |
) |
|
753 |
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Income (loss) from continuing operations |
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6,016 |
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(18,529 |
) |
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(12,829 |
) |
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(35,548 |
) | ||||
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Discontinued operations: |
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Income (loss), net |
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490 |
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|
1,709 |
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|
1,453 |
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(27,408 |
) | ||||
Gain on sales of investment properties |
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6,847 |
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|
702 |
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|
7,762 |
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|
4,161 |
| ||||
Income (loss) from discontinued operations |
|
7,337 |
|
|
2,411 |
|
|
9,215 |
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|
(23,247 |
) | ||||
Gain on sales of investment properties |
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4,323 |
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|
2,402 |
|
|
5,002 |
|
|
5,062 |
| ||||
Net income (loss) |
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17,676 |
|
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(13,716 |
) |
|
1,388 |
|
|
(53,733 |
) | ||||
Net income attributable to noncontrolling interests |
|
- |
|
|
(8 |
) |
|
- |
|
|
(16 |
) | ||||
Net income (loss) attributable to Company shareholders |
|
$ |
17,676 |
|
|
$ |
(13,724 |
) |
|
$ |
1,388 |
|
|
$ |
(53,749 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Earnings (loss) per common share-basic and diluted (a): |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Continuing operations |
|
$ |
0.05 |
|
|
$ |
(0.08 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.16 |
) |
Discontinued operations |
|
0.03 |
|
|
0.01 |
|
|
0.05 |
|
|
(0.12 |
) | ||||
Net income (loss) per common share attributable to |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Company shareholders |
|
$ |
0.08 |
|
|
$ |
(0.07 |
) |
|
$ |
0.01 |
|
|
$ |
(0.28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted average number of common shares outstanding - basic and diluted (a) |
|
226,543 |
|
|
192,114 |
|
|
210,331 |
|
|
191,801 |
|
(a) |
All common stock share amounts and per share amounts give retroactive effect to the Recapitalization. |
Retail Properties of America, Inc.
Funds From Operations (FFO) and Operating FFO
(amounts in thousands, except per share amounts)
(unaudited)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, | ||||||||||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) attributable to Company shareholders |
|
$ |
17,676 |
|
|
$ |
(13,724 |
) |
|
$ |
1,388 |
|
|
$ |
(53,749 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Depreciation and amortization (a) |
|
62,156 |
|
|
64,389 |
|
|
127,381 |
|
|
129,836 |
| ||||
Provision for impairment of investment properties (a) |
|
1,498 |
|
|
1,523 |
|
|
2,553 |
|
(b) |
34,270 |
| ||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Gain on sales of investment properties (a) |
|
(11,170 |
) |
|
(3,104 |
) |
|
(12,764 |
) |
|
(9,223 |
) | ||||
Noncontrolling interests share of depreciation related to consolidated joint ventures (a) |
|
- |
|
|
(96 |
) |
|
- |
|
|
(680 |
) | ||||
FFO |
|
$ |
70,160 |
|
|
$ |
48,988 |
|
|
$ |
118,558 |
|
|
$ |
100,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
FFO per common share outstanding |
|
$ |
0.31 |
|
|
$ |
0.25 |
|
|
$ |
0.56 |
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
FFO |
|
$ |
70,160 |
|
|
$ |
48,988 |
|
|
$ |
118,558 |
|
|
$ |
100,454 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Excise tax accrual |
|
- |
|
|
- |
|
|
4,594 |
|
|
- |
| ||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Mortgage premium write-off |
|
(10,295 |
) |
|
- |
|
|
(10,295 |
) |
|
- |
| ||||
Recognized gain on marketable securities |
|
(7,265 |
) |
|
(277 |
) |
|
(7,265 |
) |
|
(277 |
) | ||||
Gain on extinguishment of debt |
|
- |
|
|
(3,715 |
) |
|
(3,879 |
) |
|
(14,438 |
) | ||||
Other |
|
(1,627 |
) |
|
- |
|
|
(1,627 |
) |
|
- |
| ||||
Operating FFO |
|
$ |
50,973 |
|
|
$ |
44,996 |
|
|
$ |
100,086 |
|
|
$ |
85,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating FFO per common share outstanding |
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
$ |
0.48 |
|
|
$ |
0.45 |
|
(a) |
Includes amounts from discontinued operations. |
|
|
(b) |
Excludes $230, which represents the amount by which our pro rata share of the impairment charges included in losses recorded at our Hampton unconsolidated joint venture during the six months ended June 30, 2012, exceeded the carrying value of our investment in such joint venture. |
Retail Properties of America, Inc.
Reconciliation of Non-GAAP Financial Measures
Reconciliation of Net Income (Loss) to NOI
(amounts in thousands)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, | ||||||||||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 | ||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Same store investment properties (270 properties): |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Rental income |
|
$ |
117,116 |
|
|
$ |
115,726 |
|
|
$ |
234,863 |
|
|
$ |
231,025 |
|
Tenant recovery income |
|
25,185 |
|
|
23,963 |
|
|
52,899 |
|
|
51,009 |
| ||||
Other property income |
|
2,588 |
|
|
2,714 |
|
|
5,272 |
|
|
5,409 |
| ||||
Other investment properties: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Rental income |
|
2,395 |
|
|
3,787 |
|
|
4,587 |
|
|
7,620 |
| ||||
Tenant recovery income |
|
91 |
|
|
764 |
|
|
838 |
|
|
1,656 |
| ||||
Other property income |
|
218 |
|
|
67 |
|
|
297 |
|
|
188 |
| ||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Same store investment properties (270 properties): |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Property operating expenses |
|
(22,004 |
) |
|
(22,046 |
) |
|
(45,722 |
) |
|
(47,249 |
) | ||||
Real estate taxes |
|
(17,483 |
) |
|
(19,105 |
) |
|
(36,501 |
) |
|
(37,083 |
) | ||||
Other investment properties: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Property operating expenses |
|
(680 |
) |
|
(1,010 |
) |
|
(1,174 |
) |
|
(2,469 |
) | ||||
Real estate taxes |
|
(1,858 |
) |
|
(1,018 |
) |
|
(2,818 |
) |
|
(1,896 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net operating income: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Same store investment properties |
|
105,402 |
|
|
101,252 |
|
|
210,811 |
|
|
203,111 |
| ||||
Other investment properties |
|
166 |
|
|
2,590 |
|
|
1,730 |
|
|
5,099 |
| ||||
Total net operating income |
|
105,568 |
|
|
103,842 |
|
|
212,541 |
|
|
208,210 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Straight-line rental income, net |
|
228 |
|
|
(132 |
) |
|
623 |
|
|
(203 |
) | ||||
Amortization of acquired above & below market lease intangibles, net |
|
376 |
|
|
426 |
|
|
922 |
|
|
795 |
| ||||
Amortization of lease inducements |
|
(72 |
) |
|
(15 |
) |
|
(112 |
) |
|
(30 |
) | ||||
Straight-line ground rent expense |
|
(910 |
) |
|
(948 |
) |
|
(1,826 |
) |
|
(1,904 |
) | ||||
Depreciation and amortization |
|
(58,289 |
) |
|
(58,742 |
) |
|
(116,719 |
) |
|
(117,369 |
) | ||||
Provision for impairment of investment properties |
|
(1,323 |
) |
|
- |
|
|
(1,323 |
) |
|
- |
| ||||
Loss on lease terminations |
|
(1,177 |
) |
|
(3,355 |
) |
|
(4,901 |
) |
|
(6,693 |
) | ||||
General and administrative expenses |
|
(6,543 |
) |
|
(5,043 |
) |
|
(11,464 |
) |
|
(11,370 |
) | ||||
Dividend income |
|
615 |
|
|
522 |
|
|
1,480 |
|
|
1,198 |
| ||||
Interest income |
|
19 |
|
|
170 |
|
|
40 |
|
|
350 |
| ||||
Gain on extinguishment of debt |
|
- |
|
|
3,715 |
|
|
3,879 |
|
|
14,438 |
| ||||
Equity in loss of unconsolidated joint ventures, net |
|
(1,286 |
) |
|
(1,981 |
) |
|
(3,604 |
) |
|
(4,159 |
) | ||||
Interest expense |
|
(40,537 |
) |
|
(55,644 |
) |
|
(95,263 |
) |
|
(116,257 |
) | ||||
Co-venture obligation expense |
|
(397 |
) |
|
(1,792 |
) |
|
(3,300 |
) |
|
(3,584 |
) | ||||
Recognized gain on marketable securities |
|
7,265 |
|
|
277 |
|
|
7,265 |
|
|
277 |
| ||||
Other income (expense), net |
|
2,479 |
|
|
171 |
|
|
(1,067 |
) |
|
753 |
| ||||
Total other expense |
|
(99,552 |
) |
|
(122,371 |
) |
|
(225,370 |
) |
|
(243,758 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Income (loss) from continuing operations |
|
6,016 |
|
|
(18,529 |
) |
|
(12,829 |
) |
|
(35,548 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Income (loss), net |
|
490 |
|
|
1,709 |
|
|
1,453 |
|
|
(27,408 |
) | ||||
Gain on sales of investment properties, net |
|
6,847 |
|
|
702 |
|
|
7,762 |
|
|
4,161 |
| ||||
Income (loss) from discontinued operations |
|
7,337 |
|
|
2,411 |
|
|
9,215 |
|
|
(23,247 |
) | ||||
Gain on sales of investment properties |
|
4,323 |
|
|
2,402 |
|
|
5,002 |
|
|
5,062 |
| ||||
Net income (loss) |
|
17,676 |
|
|
(13,716 |
) |
|
1,388 |
|
|
(53,733 |
) | ||||
Net income attributable to noncontrolling interests |
|
- |
|
|
(8 |
) |
|
- |
|
|
(16 |
) | ||||
Net income (loss) attributable to Company shareholders |
|
$ |
17,676 |
|
|
$ |
(13,724 |
) |
|
$ |
1,388 |
|
|
$ |
(53,749 |
) |
Retail Properties of America, Inc.
FFO and Operating FFO Guidance
|
|
Per Share Guidance Range | ||||||
|
|
Full Year 2012 | ||||||
|
|
Low |
|
High | ||||
|
|
|
|
|
|
| ||
Net loss attributable to Company shareholders |
|
$ |
(0.15 |
) |
|
$ |
(0.11 |
) |
Add: |
|
|
|
|
|
| ||
Depreciation and amortization (a) |
|
1.19 |
|
|
1.19 |
| ||
Provision for impairment of investment properties (a) |
|
0.01 |
|
|
0.01 |
| ||
Less: |
|
|
|
|
|
| ||
Gain on sales of investment properties (a) |
|
(0.13 |
) |
|
(0.13 |
) | ||
Noncontrolling interests share of depreciation related to consolidated joint ventures (a) |
|
- |
|
|
- |
| ||
FFO |
|
$ |
0.92 |
|
|
$ |
0.96 |
|
|
|
|
|
|
|
| ||
Add: |
|
|
|
|
|
| ||
Excise tax accrual |
|
0.02 |
|
|
0.02 |
| ||
Less: |
|
|
|
|
|
| ||
Mortgage premium write-off |
|
(0.05 |
) |
|
(0.05 |
) | ||
Recognized gain on marketable securities |
|
(0.03 |
) |
|
(0.03 |
) | ||
Gain on extinguishment of debt |
|
(0.02 |
) |
|
(0.02 |
) | ||
Other |
|
(0.01 |
) |
|
(0.01 |
) | ||
Operating FFO |
|
$ |
0.83 |
|
|
$ |
0.87 |
|
(a) Includes amounts from discontinued operations.
Exhibit 99.2
Southlake Town Square, Southlake, TX Commons at Royal Palm, Royal Palm Beach, FL Paradise Valley Marketplace, Phoenix, AZ Oswego Commons, Chicago, IL Alamo Ranch, San Antonio, TX www. rpai.com Supplemental financial information Second Quarter 2012 |
Earnings Release i-vii Financial Summary Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations 2 Funds From Operations 3 Supplemental Financial Statement Detail 4 Capitalization 5 Unsecured Credit Facility Covenants 6 Consolidated Debt Summary 7 Transaction Summary Acquisitions and Dispositions 8 Portfolio Summary Property Overview 9 State/Regional Summary 10 Retail Operating Portfolio Occupancy 11 Top Tenants 12 Retail Leasing Activity Summary 13 Retail Lease Expirations 14 nconsolidated Joint Venture Summary Unconsolidated Joint Venture Combined Financial Statements 15-17 Unconsolidated Joint Venture Overview and Debt Summary 18 Other Information Non-GAAP Financial Measures and Reconciliations 19-22 table of contentS 2901 butterfield road | oak brook, IL 60523 | www. rpai.com |
RETAIL PROPERTIES OF AMERICA, INC. REPORTS
SECOND QUARTER RESULTS
Oak Brook, IL August 6, 2012 Retail Properties of America, Inc. (NYSE: RPAI) today reported financial and operating results for the quarter and six months ended June 30, 2012.
FINANCIAL RESULTS
For the quarter ended June 30, 2012, Retail Properties of America reported:
■ |
Operating Funds From Operations (Operating FFO) of $51.0 million, or $0.23 per share, compared to $45.0 million, or $0.23 per share for the same period in 2011; |
■ |
Funds From Operations (FFO) of $70.2 million, or $0.31 per share, compared to $49.0 million, or $0.25 per share for the same period in 2011; |
■ |
Net income of $17.7 million, or $0.08 per share, compared to a net loss of $13.7 million, or $(0.07) per share, for the same period in 2011. |
For the six months ended June 30, 2012, the Company reported:
■ |
Operating FFO of $100.1 million, or $0.48 per share, compared to $85.7 million, or $0.45 per share for the same period in 2011; |
■ |
FFO of $118.6 million, or $0.56 per share, compared to $100.5 million, or $0.52 per share, for the same period in 2011; |
■ |
Net income of $1.4 million, or $0.01 per share, compared to a net loss of $53.7 million, or $(0.28) per share, for the same period in 2011. |
OPERATING RESULTS
For the quarter ended June 30, 2012, Retail Properties of Americas results for its consolidated portfolio were as follows:
■ |
4.1% increase in total same store net operating income (NOI) over the comparable period in 2011; |
■ |
Total portfolio percent leased, including leases signed but not commenced: 91.6% at June 30, 2012, up 20 basis points from 91.4% at March 31, 2012 and up 160 basis points from 90.0% at June 30, 2011; |
■ |
Retail portfolio percent leased, including leases signed but not commenced: 91.0% at June 30, 2012, up 40 basis points from 90.6% at March 31, 2012 and up 230 basis points from 88.7% at June 30, 2011; |
■ |
707,000 square feet of retail leasing transactions, comprised of 148 new and renewal leases; and, |
■ |
Generated positive comparable leasing spreads, including the Companys pro rata share of joint ventures, on a cash basis, with new leases at 7.5% and renewal leases at 4.3%, for a blended spread of 5.0%. |
|
|
|
|
|
| |||
|
Retail Properties of America, Inc. | |||||||
|
| |||||||
|
|
T: 855.646.7724 |
|
|
| |||
|
|
www.rpai.com |
|
2901 Butterfield Road | ||||
|
|
|
|
Oak Brook, IL 60523 | ||||
Mr. Steven P. Grimes, president and CEO, stated, During the second quarter, the Company generated significant year-over-year operational improvements with strong leasing activity, increased portfolio occupancy, and robust same store NOI growth. We are encouraged by our progress, and with our recent equity offering, we believe we are well positioned to capture the embedded growth in our portfolio, despite the economic cross-currents. We remain focused on increasing long-term shareholder value through active asset management and prudent capital recycling.
CAPITAL MARKETS AND BALANCE SHEET ACTIVITY
PUBLIC EQUITY OFFERING
On April 11, 2012, Retail Properties of America closed on a public offering of 36.57 million shares of common stock (including the overallotment option), raising $292.6 million in gross proceeds, or $266.5 million in net proceeds. This transaction also resulted in the listing of the Companys Class A common stock on the NYSE under the symbol RPAI. The Company utilized the net proceeds from this transaction to repurchase its partners interest in a consolidated joint venture for $55.4 million, to repay a $94.3 million mortgage loan on a pool of six cross-collateralized properties, and to repay $116.8 million of outstanding amounts under its senior unsecured revolving line of credit.
FINANCINGS
During the quarter, Retail Properties of America closed on $134.0 million of mortgage loan financings, secured by three properties. The financing activity during the quarter was completed at a weighted average interest rate of 4.31% and a weighted average term of 8.7 years. The Company also made repayments on mortgages payable of $223.4 million, excluding amortization, and received forgiveness of debt of $23.6 million. The mortgages repaid during the quarter had a weighted average interest rate of 6.39%.
BALANCE SHEET
As of June 30, 2012, the Company had $3.1 billion of consolidated indebtedness outstanding at a weighted average interest rate of 5.87% and a weighted average maturity of 5.5 years.
Subsequent to quarter end, the Company entered into an interest rate swap transaction to convert the variable rate portion of $300 million of floating rate debt to a fixed rate of 0.53875% from July 31, 2012 through February 24, 2016, the maturity date of the Companys unsecured term loan. The margin on the unsecured term loan is based on a leverage grid and ranges from 1.75% to 2.50%. The applicable margin was 2.50% as of June 30, 2012.
INVESTMENT ACTIVITY
On April 10, 2012, the Company transferred one office property that was subject to a matured mortgage to the lender as a deed in lieu of foreclosure and received debt forgiveness of $23.6 million, resulting in a gain of $6.8 million. The Company has one remaining mortgage payable past maturity and continues to pursue an appropriate resolution.
As previously announced, during the second quarter, the Company, through its wholly-owned subsidiaries, completed a multi-year lease extension with Aon Corporation for approximately 819,000 square feet in Lincolnshire, IL. This transaction represents the successful renewal of the largest tenant in the non-core portfolio and the Company expects to market this asset in the near future.
TERMINATED SERVICE AGREEMENTS
During the second quarter of 2012, the Company provided written notice of termination of the following agreements with The Inland Group and its affiliates: investment advisor services, loan servicing, mortgage financing services, communications services, institutional investor relationships services, insurance and risk management services, property tax services, computer services and personnel services. With the exception of the investment advisor agreement termination, which was effective in the second quarter of 2012, these terminations will be effective during the fourth quarter of 2012.
On August 2, 2012, the Company executed a lease for new office space with an external third-party and will relocate its corporate headquarters by year-end 2012.
DIVIDEND
On June 8, 2012, the Board of Directors of Retail Properties of America declared the second quarter distribution of $0.165625 per share, payable on July 10, 2012 to stockholders of record at the close of business on June 29, 2012.
GUIDANCE
Retail Properties of America is increasing guidance for 2012 Operating FFO per share to a range of $0.83 to $0.87 versus prior guidance of $0.80 to $0.86 and improving its 2012 net loss per share guidance to a range of $(0.15) to $(0.11) versus prior guidance of $(0.23) to $(0.17).
WEBCAST AND SUPPLEMENTAL INFORMATION
Retail Properties of Americas management team will hold a webcast, on Tuesday, August 7, 2012 at 10:00 AM EST, to discuss its quarterly financial results and operating performance, business highlights and outlook. In addition, the Company may discuss business and financial developments and trends and other matters affecting the Company, some of which may not have been previously disclosed. To participate in the online webcast on the Companys website please go to www.rpai.com under the investor relations section of the website and follow the directions. A replay of the webcast will be available. To listen to the replay, please go to www.rpai.com under the investor relations section of the website and follow the directions.
The Company has also posted supplemental financial and operating information and other data on the investor relations section of its website.
ABOUT RPAI
Retail Properties of America, Inc. is a fully integrated, self-administered and self-managed real estate company that owns and operates high quality, strategically located shopping centers across 35 states. The Company is one of the largest owners and operators of shopping centers in the United States.
SAFE HARBOR LANGUAGE
The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as may, expect, continue, remains, intend, aim, should, prospects, could, future, potential, believes, plans, likely, anticipate, and probable, or the negative thereof or other variations thereon or comparable terminology, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Companys operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to, general economic, business and financial conditions, changes in the Companys industry and changes in the real estate markets in particular, market demand for and pricing of the Companys common stock, general volatility of the capital and credit markets, competitive and cost factors, the ability of the Company to enter into new leases or renew leases on favorable terms, defaults on, early terminations of or non-renewal of leases by tenants, bankruptcy or insolvency of a major tenant or a significant number of smaller tenants, the effects of declining real estate valuations and impairment charges on the Companys operating results, increased interest rates and operating costs, decreased rental rates or increased vacancy rates, the uncertainties of real estate acquisitions, dispositions and redevelopment activity, the Companys failure to successfully execute its non-core disposition program and capital recycling efforts, the Companys ability to create long-term shareholder value, the Companys ability to manage its growth effectively, the availability, terms and deployment of capital, regulatory changes and other risk factors, including those detailed in the sections of the Companys most recent Form 10-K and Form 10-Qs filed with the SEC titled Risk Factors. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
NON-GAAP FINANCIAL MEASURES
As defined by the National Association of Real Estate Investment Trusts (NAREIT), an industry trade group, FFO means net (loss) income computed in accordance with generally accepted accounting principles (GAAP), excluding gains (or losses) from sales of investment properties, plus depreciation and amortization and impairment charges on investment properties, including adjustments for unconsolidated joint ventures in which the Company holds an interest. The Company has adopted the NAREIT definition in its computation of FFO and believes that FFO, which is a non-GAAP performance measure, provides an additional and useful means to assess the operating performance of real estate investment trusts (REITs). Management believes that, subject to the following limitations, FFO provides a basis for comparing the Companys performance and operations to those of other REITs. Depreciation and amortization related to investment properties for purposes of calculating FFO include loss on lease terminations, which encompasses the write-off of tenant-related assets, including tenant improvements and in-place lease values, as a result of early lease terminations. Loss on lease terminations included in depreciation and amortization for FFO excludes the write-off of tenant-related above and below market lease intangibles that are otherwise included in Loss on lease terminations in the Companys condensed consolidated statements of operations. The Company also reports Operating FFO, which is defined as FFO excluding the impact of gains and losses from the early extinguishment of debt and other items as denoted within the calculation that management does not believe are representative of the operating results of the Companys core business platform. Management considers Operating FFO a meaningful, additional measure of operating performance primarily because it excludes the effects of transactions and other events which management does not consider representative of the operating results of the Companys core business platform. Further, comparison of the Companys presentation of Operating FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in definition and application by such REITs. FFO and Operating FFO are not intended to be alternatives to Net Income as indicators of the Companys performance, nor alternatives to Cash Flows from Operating Activities as determined by GAAP as measures of the Companys capacity to pay dividends. The Company also reports same store NOI. The Company defines NOI as operating revenues (rental income, tenant recovery income, other property income, excluding straight-line rental income, amortization of lease inducements and amortization of acquired above and below market lease intangibles) less property operating expenses (real estate tax expense and property operating expense, excluding straight-line ground rent expense and straight-line bad debt expense). Same store NOI represents NOI from the Companys same store portfolio consisting of 270 operating properties acquired or place in service prior to January 1, 2011, but excluding University Square, the property for which we have ceased making the monthly debt service payment and for which we have attempted to negotiate with the lender, due to the uncertainty of the timing of transfer of ownership of this property. Management believes that NOI and same store NOI are useful measures of the Companys operating performance. Other REITs may use different methodologies for calculating NOI, and accordingly, the Companys NOI may not be comparable to other REITs. Management believes that NOI and same store NOI provide an operating perspective not immediately apparent from GAAP operating income or net (loss) income. Management uses NOI and
same store NOI to evaluate the Companys performance on a property-by-property basis because these measures allow management to evaluate the impact that factors such as lease structure, lease rates and tenant base, which vary by property, have on the Companys operating results. However, these measures should only be used as an alternative measure of the Companys financial performance.
CONTACT INFORMATION
Angela Aman, Chief Financial Officer |
Nikki Saks |
Retail Properties of America, Inc. |
ICR, LLC |
630.586.6533 |
203.682.8289 |
Retail Properties of America, Inc.
FFO and Operating FFO Guidance
|
|
|
Per Share Guidance Range |
| ||||||
|
|
|
Low |
|
|
|
High |
| ||
|
|
|
|
|
|
|
|
| ||
Net loss attributable to Company shareholders |
|
|
$ |
(0.15 |
) |
|
|
$ |
(0.11 |
) |
Add: |
|
|
|
|
|
|
|
| ||
Depreciation and amortization (a) |
|
|
1.19 |
|
|
|
1.19 |
| ||
Provision for impairment of investment properties (a) |
|
|
0.01 |
|
|
|
0.01 |
| ||
Less: |
|
|
|
|
|
|
|
| ||
Gain on sales of investment properties (a) |
|
|
(0.13 |
) |
|
|
(0.13 |
) | ||
Noncontrolling interests share of depreciation related to consolidated joint ventures (a) |
|
|
- |
|
|
|
- |
| ||
FFO |
|
|
$ |
0.92 |
|
|
|
$ |
0.96 |
|
|
|
|
|
|
|
|
|
| ||
Add: |
|
|
|
|
|
|
|
| ||
Excise tax accrual |
|
|
0.02 |
|
|
|
0.02 |
| ||
Less: |
|
|
|
|
|
|
|
| ||
Mortgage premium write-off |
|
|
(0.05 |
) |
|
|
(0.05 |
) | ||
Recognized gain on marketable securities |
|
|
(0.03 |
) |
|
|
(0.03 |
) | ||
Gain on extinguishment of debt |
|
|
(0.02 |
) |
|
|
(0.02 |
) | ||
Other |
|
|
(0.01 |
) |
|
|
(0.01 |
) | ||
Operating FFO |
|
|
$ |
0.83 |
|
|
|
$ |
0.87 |
|
(a) Includes amounts from discontinued operations.
Retail Properties of America, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands, except par value amounts)
(unaudited)
|
|
|
June 30, |
|
|
|
December 31, |
| ||
|
|
|
2012 |
|
|
|
2011 |
| ||
Assets |
|
|
|
|
|
|
|
| ||
Investment properties: |
|
|
|
|
|
|
|
| ||
Land |
|
|
$ |
1,327,299 |
|
|
|
$ |
1,334,363 |
|
Building and other improvements |
|
|
5,047,625 |
|
|
|
5,057,252 |
| ||
Developments in progress |
|
|
50,391 |
|
|
|
49,940 |
| ||
|
|
|
6,425,315 |
|
|
|
6,441,555 |
| ||
Less accumulated depreciation |
|
|
(1,274,421 |
) |
|
|
(1,180,767 |
) | ||
Net investment properties |
|
|
5,150,894 |
|
|
|
5,260,788 |
| ||
|
|
|
|
|
|
|
|
| ||
Cash and cash equivalents |
|
|
102,346 |
|
|
|
136,009 |
| ||
Investment in marketable securities, net |
|
|
20,034 |
|
|
|
30,385 |
| ||
Investment in unconsolidated joint ventures |
|
|
56,548 |
|
|
|
81,168 |
| ||
Accounts and notes receivable (net of allowances of $7,863 and $8,231, respectively) |
|
|
86,810 |
|
|
|
94,922 |
| ||
Acquired lease intangibles, net |
|
|
152,713 |
|
|
|
174,404 |
| ||
Other assets, net |
|
|
190,061 |
|
|
|
164,218 |
| ||
Total assets |
|
|
$ |
5,759,406 |
|
|
|
$ |
5,941,894 |
|
|
|
|
|
|
|
|
|
| ||
Liabilities and Equity |
|
|
|
|
|
|
|
| ||
Liabilities: |
|
|
|
|
|
|
|
| ||
Mortgages and notes payable (includes unamortized premium of $0 and $10,858, respectively, and unamortized discount of $(1,747) and $(2,003), respectively) |
|
|
$ |
2,702,920 |
|
|
|
$ |
2,926,218 |
|
Credit facility |
|
|
430,000 |
|
|
|
555,000 |
| ||
Accounts payable and accrued expenses |
|
|
98,459 |
|
|
|
83,012 |
| ||
Distributions payable |
|
|
38,200 |
|
|
|
31,448 |
| ||
Acquired below market lease intangibles, net |
|
|
78,203 |
|
|
|
81,321 |
| ||
Other financings |
|
|
- |
|
|
|
8,477 |
| ||
Co-venture obligation |
|
|
- |
|
|
|
52,431 |
| ||
Other liabilities |
|
|
70,296 |
|
|
|
66,944 |
| ||
Total liabilities |
|
|
3,418,078 |
|
|
|
3,804,851 |
| ||
|
|
|
|
|
|
|
|
| ||
Redeemable noncontrolling interests |
|
|
- |
|
|
|
525 |
| ||
|
|
|
|
|
|
|
|
| ||
Commitments and contingencies |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
Equity (a): |
|
|
|
|
|
|
|
| ||
Preferred stock, $0.001 par value, 10,000 shares authorized, none issued or outstanding |
|
|
- |
|
|
|
- |
| ||
Class A common stock, $0.001 par value, 475,000 shares authorized, 85,088 and 48,382 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively |
|
|
85 |
|
|
|
48 |
| ||
Class B-1 common stock, $0.001 par value, 55,000 shares authorized, 48,518 and 48,382 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively |
|
|
48 |
|
|
|
48 |
| ||
Class B-2 common stock, $0.001 par value, 55,000 shares authorized, 48,518 and 48,382 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively |
|
|
49 |
|
|
|
49 |
| ||
Class B-3 common stock, $0.001 par value, 55,000 shares authorized, 48,519 and 48,383 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively |
|
|
49 |
|
|
|
49 |
| ||
Additional paid-in capital |
|
|
4,704,962 |
|
|
|
4,427,977 |
| ||
Accumulated distributions in excess of earnings |
|
|
(2,381,858 |
) |
|
|
(2,312,877 |
) | ||
Accumulated other comprehensive income |
|
|
16,499 |
|
|
|
19,730 |
| ||
Total shareholders equity |
|
|
2,339,834 |
|
|
|
2,135,024 |
| ||
Noncontrolling interests |
|
|
1,494 |
|
|
|
1,494 |
| ||
Total equity |
|
|
2,341,328 |
|
|
|
2,136,518 |
| ||
Total liabilities and equity |
|
|
$ |
5,759,406 |
|
|
|
$ |
5,941,894 |
|
(a) |
On March 20, 2012, we effectuated a ten-to-one reverse stock split of our then outstanding common stock. Immediately following the reverse stock split, we redesignated all of our common stock as Class A common stock. On March 21, 2012, we paid a stock dividend pursuant to which each then outstanding share of our Class A common stock received one share of Class B-1 common stock, one share of Class B-2 common stock and one share of Class B-3 common stock. These transactions are referred to as the Recapitalization. All common stock share amounts and related dollar amounts give retroactive effect to the Recapitalization. |
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per share amounts)
(unaudited)
|
|
|
Three Months Ended June 30, |
|
|
|
Six Months Ended June 30, |
| ||||||||||||
|
|
|
2012 |
|
|
|
2011 |
|
|
|
2012 |
|
|
|
2011 |
| ||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Rental income |
|
|
$ |
120,043 |
|
|
|
$ |
119,853 |
|
|
|
$ |
240,883 |
|
|
|
$ |
240,093 |
|
Tenant recovery income |
|
|
25,276 |
|
|
|
24,727 |
|
|
|
53,737 |
|
|
|
52,665 |
| ||||
Other property income |
|
|
2,806 |
|
|
|
2,781 |
|
|
|
5,569 |
|
|
|
5,597 |
| ||||
Total revenues |
|
|
148,125 |
|
|
|
147,361 |
|
|
|
300,189 |
|
|
|
298,355 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Property operating expenses |
|
|
23,594 |
|
|
|
24,065 |
|
|
|
48,722 |
|
|
|
52,508 |
| ||||
Real estate taxes |
|
|
19,341 |
|
|
|
20,123 |
|
|
|
39,319 |
|
|
|
38,979 |
| ||||
Depreciation and amortization |
|
|
58,289 |
|
|
|
58,742 |
|
|
|
116,719 |
|
|
|
117,369 |
| ||||
Provision for impairment of investment properties |
|
|
1,323 |
|
|
|
- |
|
|
|
1,323 |
|
|
|
- |
| ||||
Loss on lease terminations |
|
|
1,177 |
|
|
|
3,355 |
|
|
|
4,901 |
|
|
|
6,693 |
| ||||
General and administrative expenses |
|
|
6,543 |
|
|
|
5,043 |
|
|
|
11,464 |
|
|
|
11,370 |
| ||||
Total expenses |
|
|
110,267 |
|
|
|
111,328 |
|
|
|
222,448 |
|
|
|
226,919 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating income |
|
|
37,858 |
|
|
|
36,033 |
|
|
|
77,741 |
|
|
|
71,436 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Dividend income |
|
|
615 |
|
|
|
522 |
|
|
|
1,480 |
|
|
|
1,198 |
| ||||
Interest income |
|
|
19 |
|
|
|
170 |
|
|
|
40 |
|
|
|
350 |
| ||||
Gain on extinguishment of debt |
|
|
- |
|
|
|
3,715 |
|
|
|
3,879 |
|
|
|
14,438 |
| ||||
Equity in loss of unconsolidated joint ventures, net |
|
|
(1,286 |
) |
|
|
(1,981 |
) |
|
|
(3,604 |
) |
|
|
(4,159 |
) | ||||
Interest expense |
|
|
(40,537 |
) |
|
|
(55,644 |
) |
|
|
(95,263 |
) |
|
|
(116,257 |
) | ||||
Co-venture obligation expense |
|
|
(397 |
) |
|
|
(1,792 |
) |
|
|
(3,300 |
) |
|
|
(3,584 |
) | ||||
Recognized gain on marketable securities |
|
|
7,265 |
|
|
|
277 |
|
|
|
7,265 |
|
|
|
277 |
| ||||
Other income (expense), net |
|
|
2,479 |
|
|
|
171 |
|
|
|
(1,067 |
) |
|
|
753 |
| ||||
Income (loss) from continuing operations |
|
|
6,016 |
|
|
|
(18,529 |
) |
|
|
(12,829 |
) |
|
|
(35,548 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Income (loss), net |
|
|
490 |
|
|
|
1,709 |
|
|
|
1,453 |
|
|
|
(27,408 |
) | ||||
Gain on sales of investment properties |
|
|
6,847 |
|
|
|
702 |
|
|
|
7,762 |
|
|
|
4,161 |
| ||||
Income (loss) from discontinued operations |
|
|
7,337 |
|
|
|
2,411 |
|
|
|
9,215 |
|
|
|
(23,247 |
) | ||||
Gain on sales of investment properties |
|
|
4,323 |
|
|
|
2,402 |
|
|
|
5,002 |
|
|
|
5,062 |
| ||||
Net income (loss) |
|
|
17,676 |
|
|
|
(13,716 |
) |
|
|
1,388 |
|
|
|
(53,733 |
) | ||||
Net income attributable to noncontrolling interests |
|
|
- |
|
|
|
(8 |
) |
|
|
- |
|
|
|
(16 |
) | ||||
Net income (loss) attributable to Company shareholders |
|
|
$ |
17,676 |
|
|
|
$ |
(13,724 |
) |
|
|
$ |
1,388 |
|
|
|
$ |
(53,749 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Earnings (loss) per common share - basic and diluted (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Continuing operations |
|
|
$ |
0.05 |
|
|
|
$ |
(0.08 |
) |
|
|
$ |
(0.04 |
) |
|
|
$ |
(0.16 |
) |
Discontinued operations |
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
|
(0.12 |
) | ||||
Net income (loss) per common share attributable to Company shareholders |
|
|
$ |
0.08 |
|
|
|
$ |
(0.07 |
) |
|
|
$ |
0.01 |
|
|
|
$ |
(0.28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted average number of common shares outstanding - basic and diluted (a) |
|
|
226,543 |
|
|
|
192,114 |
|
|
|
210,331 |
|
|
|
191,801 |
|
(a) All common stock share amounts and per share amounts give retroactive effect to the Recapitalization.
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Funds From Operations (FFO), Operating FFO and Additional Information
(amounts in thousands, except per share amounts and percentages)
(unaudited)
FFO, Operating FFO and Dividend Ratios (a)
|
|
|
Three Months Ended June 30, |
|
|
|
Six Months Ended June 30, |
| ||||||||||||
|
|
|
2012 |
|
|
|
2011 |
|
|
|
2012 |
|
|
|
2011 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) attributable to Company shareholders |
|
|
$ |
17,676 |
|
|
|
$ |
(13,724 |
) |
|
|
$ |
1,388 |
|
|
|
$ |
(53,749 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Depreciation and amortization (b) |
|
|
62,156 |
|
|
|
64,389 |
|
|
|
127,381 |
|
|
|
129,836 |
| ||||
Provision for impairment of investment properties (b) |
|
|
1,498 |
|
|
|
1,523 |
|
|
|
2,553 |
|
(c) |
|
34,270 |
| ||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Gain on sales of investment properties (b) |
|
|
(11,170 |
) |
|
|
(3,104 |
) |
|
|
(12,764 |
) |
|
|
(9,223 |
) | ||||
Noncontrolling interests share of depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
related to consolidated joint ventures (b) |
|
|
- |
|
|
|
(96 |
) |
|
|
- |
|
|
|
(680 |
) | ||||
FFO |
|
|
$ |
70,160 |
|
|
|
$ |
48,988 |
|
|
|
$ |
118,558 |
|
|
|
$ |
100,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
FFO per common share outstanding |
|
|
$ |
0.31 |
|
|
|
$ |
0.25 |
|
|
|
$ |
0.56 |
|
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
FFO |
|
|
$ |
70,160 |
|
|
|
$ |
48,988 |
|
|
|
$ |
118,558 |
|
|
|
$ |
100,454 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Excise tax accrual |
|
|
- |
|
|
|
- |
|
|
|
4,594 |
|
|
|
- |
| ||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Mortgage premium write-off |
|
|
(10,295 |
) |
|
|
- |
|
|
|
(10,295 |
) |
|
|
- |
| ||||
Recognized gain on marketable securities |
|
|
(7,265 |
) |
|
|
(277 |
) |
|
|
(7,265 |
) |
|
|
(277 |
) | ||||
Gain on extinguishment of debt |
|
|
- |
|
|
|
(3,715 |
) |
|
|
(3,879 |
) |
|
|
(14,438 |
) | ||||
Other |
|
|
(1,627 |
) |
|
|
- |
|
|
|
(1,627 |
) |
|
|
- |
| ||||
Operating FFO |
|
|
$ |
50,973 |
|
|
|
$ |
44,996 |
|
|
|
$ |
100,086 |
|
|
|
$ |
85,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating FFO per common share outstanding |
|
|
$ |
0.23 |
|
|
|
$ |
0.23 |
|
|
|
$ |
0.48 |
|
|
|
$ |
0.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted average number of common shares outstanding |
|
|
226,543 |
|
|
|
192,114 |
|
|
|
210,331 |
|
|
|
191,801 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Dividends declared per common share |
|
|
$ |
0.16563 |
|
|
|
$ |
0.15625 |
|
|
|
$ |
0.33125 |
|
|
|
$ |
0.30469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Additional Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating property maintenance capital expenditures (d) (e) |
|
|
$ |
2,188 |
|
|
|
$ |
1,582 |
|
|
|
$ |
4,264 |
|
|
|
$ |
2,707 |
|
Operating property lease-related expenditures (e) (f) |
|
|
$ |
8,218 |
|
|
|
$ |
7,778 |
|
|
|
$ |
19,380 |
|
|
|
$ |
15,071 |
|
Straight-line rental income, net (e) |
|
|
$ |
286 |
|
|
|
$ |
(77 |
) |
|
|
$ |
724 |
|
|
|
$ |
(134 |
) |
Amortization of above and below market leases and lease inducements (e) |
|
|
$ |
288 |
|
|
|
$ |
394 |
|
|
|
$ |
777 |
|
|
|
$ |
737 |
|
Straight-line ground rent expense (e) |
|
|
$ |
(910 |
) |
|
|
$ |
(948 |
) |
|
|
$ |
(1,826 |
) |
|
|
$ |
(1,904 |
) |
(a) Refer to page 19 for definitions of FFO and Operating FFO.
(b) Includes amounts from discontinued operations.
(c) Excludes $230, which represents the amount by which our pro rata share of the impairment charges included in losses recorded at our Hampton unconsolidated joint venture during the six months ended June 30, 2012, exceeded the carrying value of our investment in such joint venture.
(d) Consists of payments for building and site improvements.
(e) Reported totals are inclusive of our pro rata share from our RioCan, MS Inland and Hampton investment property unconsolidated joint ventures.
(f) Consists of payments for tenant improvements, lease commissions and lease inducements.
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Supplemental Financial Statement Detail
(amounts in thousands)
(unaudited)
Supplemental Balance Sheet Detail |
|
|
|
|
|
|
June 30, |
|
|
|
December 31, |
|
|
|
|
| ||||
|
|
|
|
|
|
|
2012 |
|
|
|
2011 |
|
|
|
|
| ||||
Accounts and Notes Receivable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Accounts receivable (net of allowances of $6,202 and $5,975, respectively) |
|
|
|
$ |
28,266 |
|
|
|
$ |
36,105 |
|
|
|
|
| |||||
Straight-line receivables (net of allowances of $1,361 and $1,956, respectively) |
|
|
|
58,544 |
|
|
|
58,817 |
|
|
|
|
| |||||||
Notes receivable (net of allowances of $300) |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
| ||||
Total |
|
|
|
|
|
|
$ |
86,810 |
|
|
|
$ |
94,922 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Other Assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Deferred costs, net |
|
|
|
|
|
|
$ |
87,718 |
|
|
|
$ |
51,862 |
|
|
|
|
| ||
Restricted cash and escrows |
|
|
|
|
|
|
82,806 |
|
|
|
91,533 |
|
|
|
|
| ||||
Other assets, net |
|
|
|
|
|
|
19,537 |
|
|
|
20,823 |
|
|
|
|
| ||||
Total |
|
|
|
|
|
|
$ |
190,061 |
|
|
|
$ |
164,218 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Other Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Unearned income |
|
|
|
|
|
|
$ |
17,699 |
|
|
|
$ |
19,057 |
|
|
|
|
| ||
Straight-line ground rent liability |
|
|
|
|
|
|
30,644 |
|
|
|
28,872 |
|
|
|
|
| ||||
Fair value of derivatives |
|
|
|
|
|
|
2,501 |
|
|
|
2,891 |
|
|
|
|
| ||||
Other liabilities |
|
|
|
|
|
|
19,452 |
|
|
|
16,124 |
|
|
|
|
| ||||
Total |
|
|
|
|
|
|
$ |
70,296 |
|
|
|
$ |
66,944 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Developments in Progress |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Active developments (a) |
|
|
|
|
|
|
$ |
4,050 |
|
|
|
$ |
3,599 |
|
|
|
|
| ||
Property available for future development (b) |
|
|
|
|
|
|
46,341 |
|
|
|
46,341 |
|
|
|
|
| ||||
Total |
|
|
|
|
|
|
$ |
50,391 |
|
|
|
$ |
49,940 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Supplemental Statements of Operations Detail |
|
|
Three Months Ended June 30, |
|
|
|
Six Months Ended June 30, |
| ||||||||||||
|
|
|
2012 |
|
|
|
2011 |
|
|
|
2012 |
|
|
|
2011 |
| ||||
Rental Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Base rent |
|
|
$ |
118,251 |
|
|
|
$ |
118,102 |
|
|
|
$ |
236,084 |
|
|
|
$ |
235,621 |
|
Percentage and specialty rent |
|
|
1,260 |
|
|
|
1,411 |
|
|
|
3,366 |
|
|
|
3,024 |
| ||||
Straight-line rent |
|
|
228 |
|
|
|
(71 |
) |
|
|
623 |
|
|
|
683 |
| ||||
Amortization of above and below market leases and lease inducements |
|
|
304 |
|
|
|
411 |
|
|
|
810 |
|
|
|
765 |
| ||||
Total |
|
|
$ |
120,043 |
|
|
|
$ |
119,853 |
|
|
|
$ |
240,883 |
|
|
|
$ |
240,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Other Property Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Lease termination income |
|
|
$ |
921 |
|
|
|
$ |
- |
|
|
|
$ |
1,528 |
|
|
|
$ |
771 |
|
Other property income |
|
|
1,885 |
|
|
|
2,781 |
|
|
|
4,041 |
|
|
|
4,826 |
| ||||
Total |
|
|
$ |
2,806 |
|
|
|
$ |
2,781 |
|
|
|
$ |
5,569 |
|
|
|
$ |
5,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Loss on Lease Terminations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Write-off of tenant-related tenant improvements and in-place lease values |
|
|
$ |
8 |
|
|
|
$ |
118 |
|
|
|
$ |
8 |
|
|
|
$ |
(283 |
) |
Write-off of tenant-related above and below market lease intangibles |
|
|
1,169 |
|
|
|
3,237 |
|
|
|
4,893 |
|
|
|
6,976 |
| ||||
Total |
|
|
$ |
1,177 |
|
|
|
$ |
3,355 |
|
|
|
$ |
4,901 |
|
|
|
$ |
6,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Bad Debt Expense |
|
|
$ |
265 |
|
|
|
$ |
446 |
|
|
|
$ |
466 |
|
|
|
$ |
1,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Straight-line Ground Rent Expense |
|
|
$ |
910 |
|
|
|
$ |
948 |
|
|
|
$ |
1,826 |
|
|
|
$ |
1,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Management Fee Income from Joint Ventures (c) |
|
|
$ |
708 |
|
|
|
$ |
451 |
|
|
|
$ |
1,479 |
|
|
|
$ |
1,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Capitalized Interest |
|
|
$ |
- |
|
|
|
$ |
76 |
|
|
|
$ |
- |
|
|
|
$ |
144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net Operating Income (NOI) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Same Store NOI (d) (e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Rental income |
|
|
$ |
117,116 |
|
|
|
$ |
115,726 |
|
|
|
$ |
234,863 |
|
|
|
$ |
231,025 |
|
Tenant recovery income |
|
|
25,185 |
|
|
|
23,963 |
|
|
|
52,899 |
|
|
|
51,009 |
| ||||
Other property income |
|
|
2,588 |
|
|
|
2,714 |
|
|
|
5,272 |
|
|
|
5,409 |
| ||||
Property operating expenses |
|
|
(22,004 |
) |
|
|
(22,046 |
) |
|
|
(45,722 |
) |
|
|
(47,249 |
) | ||||
Real estate taxes |
|
|
(17,483 |
) |
|
|
(19,105 |
) |
|
|
(36,501 |
) |
|
|
(37,083 |
) | ||||
Same Store NOI |
|
|
$ |
105,402 |
|
|
|
$ |
101,252 |
|
|
|
$ |
210,811 |
|
|
|
$ |
203,111 |
|
NOI from Other Investment Properties (d) |
|
|
$ |
166 |
|
|
|
$ |
2,590 |
|
|
|
$ |
1,730 |
|
|
|
$ |
5,099 |
|
Total NOI (d) |
|
|
$ |
105,568 |
|
|
|
$ |
103,842 |
|
|
|
$ |
212,541 |
|
|
|
$ |
208,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Combined NOI (d) (f) |
|
|
$ |
108,933 |
|
|
|
$ |
106,005 |
|
|
|
$ |
219,195 |
|
|
|
$ |
212,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
NOI from Discontinued Operations (d) |
|
|
$ |
490 |
|
|
|
$ |
2,661 |
|
|
|
$ |
1,884 |
|
|
|
$ |
6,703 |
|
(a) Represents one project in Henderson, Nevada.
(b) Represents three parcels at June 30, 2012 and December 31, 2011.
(c) Amounts are included in Other income (expense), net in the Condensed Consolidated Statements of Operations.
(d) Refer to pages 19 - 22 for definitions and reconciliations of non-GAAP financial measures.
(e) Same Store NOI for the three months ended June 30, 2012 and 2011 includes $(1,766) of net operating loss and $214 of NOI, respectively, from the property securing the $26,865 mortgage that had matured as of June 30, 2012 and $1,949 and $808, respectively, of NOI from a $116,400 cross-collateralized pool of mortgages that will mature in the fourth quarter of 2012. Same store NOI for the six months ended June 30, 2012 and 2011 includes $1,824 and $2,670, respectively, of NOI from a matured mortgage payable that was transferred to the lender in April 2012 as a deed-in-lieu of foreclosure transaction, $(1,803) of net operating loss and $245 of NOI, respectively, from the property securing the $26,865 mortgage that had matured as of June 30, 2012 and $3,311 and $967, respectively, of NOI from a $116,400 cross-collateralized pool of mortgages that will mature in the fourth quarter of 2012.
(f) Combined data and ratios include our pro rata share of unconsolidated joint ventures in addition to our wholly-owned and consolidated portfolio.
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Capitalization
(amounts in thousands, except ratios)
Capitalization Data
|
|
June 30, |
|
|
December 31, |
|
| ||
|
|
2012 |
|
|
2011 |
|
| ||
Equity Capitalization |
|
|
|
|
|
|
| ||
Common stock shares outstanding (a) |
|
230,643 |
|
|
193,529 |
|
| ||
Common share price at June 29, 2012 |
|
$ |
9.72 |
|
|
n/a |
|
| |
|
|
$ |
2,241,850 |
|
|
n/a |
|
| |
|
|
|
|
|
|
|
| ||
Debt Capitalization |
|
|
|
|
|
|
| ||
Fixed rate mortgages |
|
2,529,966 |
|
|
2,700,178 |
|
| ||
Variable rate mortgages |
|
31,800 |
|
|
79,599 |
|
| ||
Total mortgage debt |
|
2,561,766 |
|
|
2,779,777 |
|
| ||
|
|
|
|
|
|
|
| ||
Notes payable |
|
138,900 |
|
|
138,900 |
|
| ||
Margin payable |
|
2,254 |
|
|
7,541 |
|
| ||
Credit facility |
|
430,000 |
|
|
555,000 |
|
| ||
Total consolidated debt capitalization (includes unamortized premium of $0 and $10,858, respectively, and unamortized discount of $(1,747) and $(2,003), respectively) |
|
3,132,920 |
|
|
3,481,218 |
|
| ||
Pro rata share of our investment property unconsolidated joint ventures total debt (includes unamortized premium of $2,779 and $3,423, respectively, and unamortized discount of $(217) and $(245), respectively) |
|
112,071 |
|
|
114,382 |
|
| ||
Combined debt capitalization (b) |
|
3,244,991 |
|
|
3,595,600 |
|
| ||
|
|
|
|
|
|
|
| ||
Total capitalization at end of period |
|
$ |
5,486,841 |
|
|
$ |
3,595,600 |
|
(c) |
Reconciliation of Debt to Total Net Debt and Combined Net Debt
|
|
June 30, |
|
|
December 31, |
|
| ||
|
|
2012 |
|
|
2011 |
|
| ||
|
|
|
|
|
|
|
| ||
Total debt |
|
$ |
3,132,920 |
|
|
$ |
3,481,218 |
|
|
Less: cash and cash equivalents |
|
(102,346 |
) |
|
(136,009 |
) |
| ||
Net debt |
|
3,030,574 |
|
|
3,345,209 |
|
| ||
Adjusted EBITDA (d) (e) |
|
399,641 |
|
|
400,646 |
|
| ||
Net debt to Adjusted EBITDA |
|
7.6 |
|
x |
8.3 |
|
x | ||
|
|
|
|
|
|
|
| ||
Net debt |
|
3,030,574 |
|
|
3,345,209 |
|
| ||
Add: pro rata share of our investment property unconsolidated joint ventures total debt |
|
112,071 |
|
|
114,382 |
|
| ||
Less: pro rata share of our investment property unconsolidated joint ventures cash and cash equivalents |
|
(2,157 |
) |
|
(13,238 |
) |
| ||
Combined net debt (b) |
|
3,140,488 |
|
|
3,446,353 |
|
| ||
Combined Adjusted EBITDA (b) (d) (e) |
|
415,148 |
|
|
415,614 |
|
| ||
Combined net debt to combined Adjusted EBITDA (b) |
|
7.6 |
|
x |
8.3 |
|
x | ||
(a) |
All common stock share amounts give retroactive effect to the Recapitalization. |
|
|
(b) |
Combined data and ratios include our pro rata share of unconsolidated joint ventures in addition to our wholly-owned and consolidated portfolio. |
|
|
(c) |
Amount does not include any equity capitalization. |
|
|
(d) |
For purposes of these ratio calculations, twelve months ended figures were used. |
|
|
(e) |
Refer to pages 19 - 22 for definitions and reconciliations of non-GAAP financial measures. |
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Unsecured Credit Facility Covenants (a)
(amounts in thousands, except percentages and ratios)
|
|
|
|
June 30, | ||
|
|
Covenant |
|
2012 | ||
|
|
|
|
|
|
|
Leverage ratio |
|
< 60% |
|
(b) (c) |
52.75% |
|
|
|
|
|
|
|
|
Fixed charge coverage ratio |
|
> 1.45x |
|
(d) |
1.70x |
|
|
|
|
|
|
|
|
Secured indebtedness as a percentage of Total Asset Value |
|
< 52.50% |
|
(c) (e) |
43.95% |
|
|
|
|
|
|
|
|
Guaranteed and recourse indebtedness |
|
< $100,000 |
|
|
$33,621 |
|
|
|
|
|
|
|
|
Unsecured asset pool covenants: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage ratio |
|
< 60% |
|
(c) |
34.94% |
|
|
|
|
|
|
|
|
Debt service coverage |
|
> 1.50x |
|
|
2.69x |
|
(a) |
For a complete listing of all covenants related to our unsecured credit facility as well as covenant definitions, refer to the Second Amended and Restated Credit Agreement filed as Exhibit 10.4 to Amendment No. 5 of our Form S-11, dated March 9, 2012. |
|
|
(b) |
This ratio may be increased once to 62.5% for two consecutive quarters, if necessary. |
|
|
(c) |
Based upon a capitalization rate of 7.5%. |
|
|
(d) |
This ratio will be increased to 1.50x beginning on the date of issuance of our financial statements for the quarter ending December 31, 2012. |
|
|
(e) |
This ratio will be decreased to 50% on the date of issuance of our financial statements for the quarter ending March 31, 2013 and further reduced to 45% on the date of issuance of our financial statements for the quarter ending March 31, 2014. |
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Consolidated Debt Summary as of June 30, 2012
(dollar amounts in thousands)
|
|
Balance |
|
|
Contractual |
|
Years to |
| |
Fixed rate: |
|
|
|
|
|
|
|
| |
Mortgages payable (a) |
|
$ |
2,042,950 |
|
|
5.70% |
|
5.6 years |
|
IW JV mortgages payable |
|
488,763 |
|
|
7.50% |
|
7.4 years |
(b) | |
IW JV senior mezzanine note |
|
85,000 |
|
|
12.24% |
|
7.4 years |
(c) | |
IW JV junior mezzanine note |
|
40,000 |
|
|
14.00% |
|
7.4 years |
(c) | |
Mezzanine note |
|
13,900 |
|
|
11.00% |
|
1.5 years |
(d) | |
|
|
2,670,613 |
|
|
|
|
|
| |
Variable rate: |
|
|
|
|
|
|
|
| |
Construction loans |
|
31,800 |
|
|
4.47% |
|
0.9 years |
| |
Margin payable |
|
2,254 |
|
|
1.74% |
|
- |
(e) | |
|
|
34,054 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Total mortgages and notes payable |
|
2,704,667 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Unsecured credit facility |
|
430,000 |
|
|
2.75% |
|
3.4 years |
| |
|
|
|
|
|
|
|
|
| |
Total consolidated indebtedness |
|
$ |
3,134,667 |
|
|
5.87% |
(f) |
5.5 years |
|
Consolidated Debt Maturity Schedule as of June 30, 2012
Year |
|
Principal |
|
Principal Payoff |
|
Total (a) |
|
% of Total |
|
WA Rates on |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||
2012 |
|
$ |
12,906 |
|
$ |
245,365 |
|
$ |
258,271 |
|
8.2% |
|
5.67% |
|
2013 |
|
27,490 |
|
280,000 |
|
307,490 |
|
9.8% |
|
5.48% |
| |||
2014 |
|
28,426 |
|
222,920 |
|
251,346 |
|
8.0% |
|
6.90% |
| |||
2015 |
|
27,385 |
|
574,540 |
|
601,925 |
|
19.2% |
|
5.11% |
| |||
2016 |
|
25,315 |
|
323,217 |
|
348,532 |
|
11.1% |
|
3.20% |
| |||
2017 |
|
23,385 |
|
272,945 |
|
296,330 |
|
9.5% |
|
5.71% |
| |||
2018 |
|
22,790 |
|
11,499 |
|
34,289 |
|
1.1% |
|
6.46% |
| |||
2019 |
|
23,085 |
|
627,335 |
|
650,420 |
|
20.7% |
|
8.48% |
| |||
2020 |
|
14,599 |
|
18,979 |
|
33,578 |
|
1.1% |
|
6.75% |
| |||
2021 |
|
15,077 |
|
- |
|
15,077 |
|
0.5% |
|
5.07% |
| |||
Thereafter |
|
28,162 |
|
309,247 |
|
337,409 |
|
10.8% |
|
4.77% |
| |||
Total |
|
$ |
248,620 |
|
$ |
2,886,047 |
|
$ |
3,134,667 |
|
100.0% |
|
5.87% |
(f) |
(a) |
Does not include mortgage discount of $1,747, net of accumulated amortization, that was outstanding as of June 30, 2012. |
|
|
(b) |
Mortgages payable can be defeased beginning in January 2014. |
|
|
(c) |
Notes payable can be prepaid beginning in February 2013 for a fee ranging from 1% to 5% of the outstanding principal balance depending on the date the prepayment is made. |
|
|
(d) |
Subsequent to June 30, 2012, the entire balance of this mezzanine note was repaid. |
|
|
(e) |
Margin payable is due upon demand. |
|
|
(f) |
Interest rates presented exclude the impact of discount amortization, capitalized loan fee amortization and the increase in contractual interest rates for mortgages where we have triggered the hyper-amortization provisions of the loan agreement. As of June 30, 2012, our overall weighted average interest rate for consolidated debt including the impact of discount amortization, loan fee amortization and the higher hyper-amortization interest rates was 6.35%. |
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Acquisitions and Dispositions for the Six Months Ended June 30, 2012
(amounts in thousands, except square footage amounts)
Acquisitions:
|
|
|
|
|
|
|
|
Gross (at 100%) |
|
Pro Rata Share |
| ||||||||||||
Location |
|
Acquisition Date |
|
Joint Venture (a) |
|
Property Type |
|
Gross Leasable |
|
Purchase Price |
|
Debt Incurred |
|
GLA |
|
Purchase Price |
|
Debt Incurred |
| ||||
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
n/a |
|
n/a |
|
- |
|
$ |
- |
|
$ |
- |
|
- |
|
$ |
- |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Unconsolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
n/a |
|
n/a |
|
- |
|
$ |
- |
|
$ |
- |
|
- |
|
$ |
- |
|
$ |
- |
|
Dispositions:
|
|
|
|
|
|
|
|
Gross (at 100%) |
|
Pro Rata Share |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Location |
|
Disposition Date |
|
Joint Venture (a) |
|
Property Type |
|
GLA |
|
Sales Price |
|
Debt Repaid |
|
GLA |
|
Sales Price |
|
Debt Repaid |
| ||||
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Jacksonville, FL |
|
February 1, 2012 |
|
n/a |
|
Single-user retail |
|
13,800 |
|
$ |
5,800 |
|
$ |
- |
|
13,800 |
|
$ |
5,800 |
|
$ |
- |
|
Winston-Salem, NC |
|
April 10, 2012 (b) |
|
n/a |
|
Single-user office |
|
501,000 |
|
- |
|
23,570 |
|
501,000 |
|
- |
|
23,570 |
| ||||
|
|
|
|
|
|
|
|
514,800 |
|
$ |
5,800 |
|
$ |
23,570 |
|
514,800 |
|
$ |
5,800 |
|
$ |
23,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Unconsolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Westminster, CO |
|
May 7, 2012 |
|
Hampton |
|
Single-user retail |
|
43,200 |
|
$ |
2,000 |
|
$ |
1,853 |
|
41,400 |
|
$ |
1,918 |
|
$ |
1,777 |
|
Transactions Between RPAI Entities:
|
|
|
|
|
|
|
|
Gross (at 100%) |
|
Pro Rata Share |
| ||||||||||||
Location |
|
Transaction Date |
|
Acquiring Joint |
|
Property Type |
|
GLA |
|
Sales Price |
|
Debt Incurred |
|
GLA |
|
Sales Price |
|
Debt Incurred |
| ||||
Southlake, TX |
|
February 23, 2012 |
|
RioCan (c) |
|
Multi-tenant retail |
|
134,900 |
|
$ |
35,366 |
|
$ |
20,945 |
|
26,980 |
|
$ |
7,073 |
|
$ |
4,189 |
|
(a) |
As of June 30, 2012, we held 20.0%, 20.0% and 95.9% ownership interests in our RioCan, MS Inland and Hampton unconsolidated joint ventures, respectively. |
|
|
(b) |
On April 10, 2012, we transferred this property to the lender through a deed-in-lieu of foreclosure transaction. |
|
|
(c) |
Our RioCan joint venture acquired the property in Southlake, Texas from our MS Inland joint venture. MS Inland used proceeds from the transaction to payoff the $20,625 mortgage on the property, of which our pro rata share was $4,125. |
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Property Overview as of June 30, 2012
(dollar amounts and square footage in thousands)
Consolidated Operating Properties at 100%:
Property Type/Region |
|
|
|
Number of |
|
GLA |
|
% of Total |
|
Occupancy |
|
% Leased |
|
Annualized |
|
% of Total |
|
ABR Per |
| |
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
North |
|
|
|
83 |
|
10,627 |
|
30.5% |
|
91.6% |
|
92.9% |
|
$ 136,764 |
|
31.5% |
|
$ |
14.05 |
|
East |
|
|
|
67 |
|
8,617 |
|
24.7% |
|
91.1% |
|
93.5% |
|
101,787 |
|
23.5% |
|
12.96 |
| |
West |
|
|
|
51 |
|
8,040 |
|
23.0% |
|
81.0% |
|
88.1% |
|
92,134 |
|
21.2% |
|
14.15 |
| |
South |
|
|
|
58 |
|
7,589 |
|
21.8% |
|
87.2% |
|
88.4% |
|
103,486 |
|
23.8% |
|
15.63 |
| |
Total - Retail |
|
|
|
259 |
|
34,873 |
|
100.0% |
|
88.1% |
|
91.0% |
|
434,171 |
|
100.0% |
|
14.13 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Office |
|
|
|
11 |
|
2,834 |
|
|
|
95.9% |
|
95.9% |
|
33,652 |
|
|
|
12.39 |
| |
Industrial |
|
|
|
3 |
|
1,323 |
|
|
|
100.0% |
|
100.0% |
|
6,844 |
|
|
|
5.17 |
| |
Total Other |
|
|
|
14 |
|
4,157 |
|
|
|
97.2% |
|
97.2% |
|
40,496 |
|
|
|
10.03 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Consolidated Operating Portfolio |
|
273 |
|
39,030 |
|
|
|
89.0% |
|
91.6% |
|
$ 474,667 |
|
|
|
$ |
13.66 |
|
Unconsolidated Operating Properties at 100%:
Property Type/Region |
|
RPAI |
|
Number of |
|
GLA |
|
% of Total |
|
Occupancy |
|
% Leased |
|
ABR |
|
% of Total |
|
ABR Per |
| ||
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
North |
|
20.0% |
|
1 |
|
221 |
|
5.0% |
|
99.4% |
|
99.4% |
|
$ |
4,496 |
|
6.8% |
|
$ |
20.50 |
|
East |
|
20.0% |
|
3 |
|
538 |
|
12.1% |
|
94.0% |
|
94.4% |
|
7,206 |
|
11.0% |
|
14.25 |
| ||
West |
|
95.9% |
|
3 |
|
140 |
|
3.0% |
|
78.6% |
|
78.6% |
|
1,413 |
|
2.2% |
|
12.80 |
| ||
South |
|
20.0% |
|
16 |
|
3,565 |
|
79.9% |
|
93.9% |
|
95.6% |
|
52,610 |
|
80.0% |
|
15.71 |
| ||
Total - Retail |
|
|
|
23 |
|
4,464 |
|
100.0% |
|
93.7% |
|
95.1% |
|
$ |
65,725 |
|
100.0% |
|
$ |
15.70 |
|
Total Pro Rata Operating Portfolio (f):
Property Type/Region |
|
|
|
Number of |
|
GLA |
|
% of Total |
|
Occupancy |
|
% Leased |
|
ABR (d) |
|
% of Total |
|
ABR Per |
| ||
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
North |
|
|
|
84 |
|
10,671 |
|
29.8% |
|
91.6% |
|
92.9% |
|
$ |
137,663 |
|
30.7% |
|
$ |
14.08 |
|
East |
|
|
|
70 |
|
8,724 |
|
24.3% |
|
91.2% |
|
93.6% |
|
103,228 |
|
23.0% |
|
12.98 |
| ||
West |
|
|
|
54 |
|
8,175 |
|
22.8% |
|
80.9% |
|
88.0% |
|
93,489 |
|
20.9% |
|
14.13 |
| ||
South |
|
|
|
74 |
|
8,302 |
|
23.1% |
|
87.8% |
|
89.0% |
|
114,008 |
|
25.4% |
|
15.64 |
| ||
Total - Retail |
|
|
|
282 |
|
35,872 |
|
100.0% |
|
88.2% |
|
91.1% |
|
448,388 |
|
100.0% |
|
14.17 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Office |
|
|
|
11 |
|
2,834 |
|
|
|
95.9% |
|
95.9% |
|
33,652 |
|
|
|
12.39 |
| ||
Industrial |
|
|
|
3 |
|
1,323 |
|
|
|
100.0% |
|
100.0% |
|
6,844 |
|
|
|
5.17 |
| ||
Total Other |
|
|
|
14 |
|
4,157 |
|
|
|
97.2% |
|
97.2% |
|
40,496 |
|
|
|
10.03 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Total Pro Rata Share |
|
|
|
296 |
|
40,029 |
|
|
|
89.1% |
|
91.7% |
|
$ |
488,884 |
|
|
|
$ |
13.70 |
|
(a) |
Percentages are only provided for our retail operating portfolio. |
|
|
(b) |
Based on leases commenced as of June 30, 2012 and calculated as occupied GLA divided by total GLA. |
|
|
(c) |
Includes leases signed as of June 30, 2012 but not commenced and calculated as leased GLA divided by total GLA. |
|
|
(d) |
Excludes $1.45 million of ABR from our development properties and $0.4 million of rental abatements for the 12 months ending June 30, 2013. |
|
|
(e) |
Represents ABR divided by occupied GLA. |
|
|
(f) |
Includes our consolidated operating properties plus our pro rata share of unconsolidated operating properties. |
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
State/Regional Summary as of June 30, 2012
(dollar amounts and square footage in thousands)
Total Pro Rata Operating Portfolio (a):
Property Type/Region |
|
Number of |
|
GLA |
|
% of Total |
|
Occupancy |
|
% Leased |
|
ABR (e) |
|
% of Total |
|
ABR Per |
| ||
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
North |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Connecticut |
|
5 |
|
449 |
|
1.3% |
|
89.7% |
|
98.0% |
|
$ |
7,035 |
|
1.6% |
|
$ |
17.49 |
|
Indiana |
|
4 |
|
653 |
|
1.8% |
|
96.9% |
|
97.1% |
|
5,803 |
|
1.3% |
|
9.17 |
| ||
Massachusetts |
|
5 |
|
1,183 |
|
3.3% |
|
90.1% |
|
90.2% |
|
12,173 |
|
2.7% |
|
11.42 |
| ||
Maryland |
|
8 |
|
2,299 |
|
6.4% |
|
93.4% |
|
94.0% |
|
33,388 |
|
7.4% |
|
15.56 |
| ||
Maine |
|
2 |
|
423 |
|
1.2% |
|
90.1% |
|
97.5% |
|
3,775 |
|
0.8% |
|
9.90 |
| ||
Michigan |
|
2 |
|
467 |
|
1.3% |
|
95.7% |
|
96.1% |
|
7,900 |
|
1.8% |
|
17.67 |
| ||
New Jersey |
|
3 |
|
449 |
|
1.3% |
|
92.4% |
|
92.4% |
|
4,688 |
|
1.0% |
|
11.30 |
| ||
New York |
|
32 |
|
1,552 |
|
4.3% |
|
97.8% |
|
97.8% |
|
24,590 |
|
5.5% |
|
16.20 |
| ||
Ohio |
|
7 |
|
1,106 |
|
3.1% |
|
80.0% |
|
81.3% |
|
11,372 |
|
2.5% |
|
12.86 |
| ||
Pennsylvania |
|
12 |
|
1,335 |
|
3.7% |
|
92.3% |
|
94.0% |
|
16,078 |
|
3.6% |
|
13.05 |
| ||
Rhode Island |
|
3 |
|
269 |
|
0.7% |
|
84.6% |
|
87.0% |
|
3,322 |
|
0.8% |
|
14.59 |
| ||
Vermont |
|
1 |
|
486 |
|
1.4% |
|
87.9% |
|
89.3% |
|
7,539 |
|
1.7% |
|
17.65 |
| ||
Subtotal - North |
|
84 |
|
10,671 |
|
29.8% |
|
91.6% |
|
92.9% |
|
137,663 |
|
30.7% |
|
14.08 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
East |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Alabama |
|
6 |
|
372 |
|
1.0% |
|
95.3% |
|
96.8% |
|
4,572 |
|
1.0% |
|
12.92 |
| ||
Florida |
|
14 |
|
1,596 |
|
4.4% |
|
90.9% |
|
91.3% |
|
20,612 |
|
4.6% |
|
14.20 |
| ||
Georgia |
|
14 |
|
1,857 |
|
5.2% |
|
93.1% |
|
94.7% |
|
20,022 |
|
4.5% |
|
11.58 |
| ||
Illinois |
|
7 |
|
1,037 |
|
2.9% |
|
85.7% |
|
92.9% |
|
15,586 |
|
3.5% |
|
17.55 |
| ||
Missouri |
|
5 |
|
812 |
|
2.3% |
|
79.8% |
|
86.3% |
|
7,167 |
|
1.6% |
|
11.07 |
| ||
North Carolina |
|
3 |
|
680 |
|
1.9% |
|
100.0% |
|
100.0% |
|
6,961 |
|
1.5% |
|
10.23 |
| ||
South Carolina |
|
12 |
|
1,271 |
|
3.5% |
|
93.7% |
|
94.1% |
|
13,806 |
|
3.1% |
|
11.60 |
| ||
Tennessee |
|
7 |
|
712 |
|
2.0% |
|
90.2% |
|
94.4% |
|
7,350 |
|
1.6% |
|
11.45 |
| ||
Virginia |
|
2 |
|
387 |
|
1.1% |
|
95.3% |
|
96.6% |
|
7,152 |
|
1.6% |
|
19.34 |
| ||
Subtotal - East |
|
70 |
|
8,724 |
|
24.3% |
|
91.2% |
|
93.6% |
|
103,228 |
|
23.0% |
|
12.98 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
West |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Arizona |
|
4 |
|
772 |
|
2.1% |
|
86.1% |
|
89.0% |
|
10,812 |
|
2.4% |
|
16.26 |
| ||
California |
|
30 |
|
2,895 |
|
8.1% |
|
73.8% |
|
88.3% |
|
30,040 |
|
6.7% |
|
14.05 |
| ||
Colorado |
|
5 |
|
613 |
|
1.7% |
|
86.3% |
|
89.7% |
|
5,953 |
|
1.3% |
|
11.25 |
| ||
Iowa |
|
1 |
|
134 |
|
0.4% |
|
92.6% |
|
93.2% |
|
1,518 |
|
0.3% |
|
12.21 |
| ||
Kansas |
|
1 |
|
237 |
|
0.7% |
|
90.7% |
|
100.0% |
|
2,077 |
|
0.5% |
|
9.68 |
| ||
Montana |
|
1 |
|
162 |
|
0.5% |
|
87.7% |
|
87.7% |
|
1,629 |
|
0.4% |
|
11.48 |
| ||
New Mexico |
|
1 |
|
224 |
|
0.6% |
|
88.3% |
|
88.3% |
|
2,982 |
|
0.7% |
|
15.06 |
| ||
Nevada |
|
3 |
|
620 |
|
1.7% |
|
81.8% |
|
87.2% |
|
8,813 |
|
2.0% |
|
17.37 |
| ||
Utah |
|
2 |
|
719 |
|
2.0% |
|
78.8% |
|
82.7% |
|
10,689 |
|
2.4% |
|
18.87 |
| ||
Washington |
|
4 |
|
1,376 |
|
3.8% |
|
83.0% |
|
85.3% |
|
14,121 |
|
3.1% |
|
12.36 |
| ||
Wisconsin |
|
2 |
|
423 |
|
1.2% |
|
92.2% |
|
92.2% |
|
4,855 |
|
1.1% |
|
12.46 |
| ||
Subtotal - West |
|
54 |
|
8,175 |
|
22.8% |
|
80.9% |
|
88.0% |
|
93,489 |
|
20.9% |
|
14.13 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
South |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Louisiana |
|
3 |
|
311 |
|
0.8% |
|
100.0% |
|
100.0% |
|
3,540 |
|
0.8% |
|
11.37 |
| ||
Oklahoma |
|
6 |
|
164 |
|
0.5% |
|
100.0% |
|
100.0% |
|
2,357 |
|
0.5% |
|
14.40 |
| ||
Texas |
|
65 |
|
7,827 |
|
21.8% |
|
87.1% |
|
88.4% |
|
108,111 |
|
24.1% |
|
15.87 |
| ||
Subtotal - South |
|
74 |
|
8,302 |
|
23.1% |
|
87.8% |
|
89.0% |
|
114,008 |
|
25.4% |
|
15.64 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Total - Pro Rata Retail |
|
282 |
|
35,872 |
|
100.0% |
|
88.2% |
|
91.1% |
|
448,388 |
|
100.0% |
|
14.17 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Office |
|
11 |
|
2,834 |
|
|
|
95.9% |
|
95.9% |
|
33,652 |
|
|
|
12.39 |
| ||
Industrial |
|
3 |
|
1,323 |
|
|
|
100.0% |
|
100.0% |
|
6,844 |
|
|
|
5.17 |
| ||
Total - Pro Rata Other |
|
14 |
|
4,157 |
|
|
|
97.2% |
|
97.2% |
|
40,496 |
|
|
|
10.03 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Total Pro Rata Operating Portfolio |
|
296 |
|
40,029 |
|
|
|
89.1% |
|
91.7% |
|
$ |
488,884 |
|
|
|
$ |
13.70 |
|
(a) |
Includes our consolidated operating properties plus our pro rata share of unconsolidated operating properties. |
|
|
(b) |
Percentages are only provided for our retail operating portfolio. |
|
|
(c) |
Based on leases commenced as of June 30, 2012 and calculated as occupied GLA divided by total GLA. |
|
|
(d) |
Includes leases signed as of June 30, 2012 but not commenced and calculated as leased GLA divided by total GLA. |
|
|
(e) |
Excludes $1.45 million of ABR from our development properties and $0.4 million of rental abatements for the 12 months ending June 30, 2013. |
|
|
(f) |
Represents ABR divided by occupied GLA. |
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Retail Operating Portfolio Occupancy Breakdown as of June 30, 2012
(square footage amounts in thousands)
Consolidated Retail Operating Properties at 100%:
|
|
|
|
Total |
|
25,000+ sq ft |
|
10,000-24,999 sq ft |
|
5,000-9,999 sq ft |
|
0-4,999 sq ft |
| ||||||||||
Property Type/Region |
|
Number of |
|
GLA |
|
Occupancy |
|
GLA |
|
Occupancy |
|
GLA |
|
Occupancy |
|
GLA |
|
Occupancy |
|
GLA |
|
Occupancy |
|
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North |
|
83 |
|
10,627 |
|
91.6% |
|
6,566 |
|
96.3% |
|
1,896 |
|
90.6% |
|
946 |
|
83.4% |
|
1,219 |
|
74.6% |
|
East |
|
67 |
|
8,617 |
|
91.1% |
|
4,672 |
|
96.0% |
|
1,599 |
|
92.5% |
|
781 |
|
89.9% |
|
1,565 |
|
75.9% |
|
West |
|
51 |
|
8,040 |
|
81.0% |
|
4,951 |
|
82.5% |
|
1,253 |
|
84.1% |
|
729 |
|
75.3% |
|
1,107 |
|
74.4% |
|
South |
|
58 |
|
7,589 |
|
87.2% |
|
3,295 |
|
92.2% |
|
1,451 |
|
88.9% |
|
1,040 |
|
84.1% |
|
1,803 |
|
78.5% |
|
Total - Consolidated at 100% |
|
259 |
|
34,873 |
|
88.1% |
|
19,484 |
|
92.0% |
|
6,199 |
|
89.4% |
|
3,496 |
|
83.4% |
|
5,694 |
|
76.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unconsolidated Retail Operating Properties at 100%: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
25,000+ sq ft |
|
10,000-24,999 sq ft |
|
5,000-9,999 sq ft |
|
0-4,999 sq ft |
| ||||||||||
Property Type/Region |
|
Number of |
|
GLA |
|
Occupancy |
|
GLA |
|
Occupancy |
|
GLA |
|
Occupancy |
|
GLA |
|
Occupancy |
|
GLA |
|
Occupancy |
|
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North |
|
1 |
|
221 |
|
99.4% |
|
73 |
|
100.0% |
|
128 |
|
100.0% |
|
6 |
|
100.0% |
|
14 |
|
90.1% |
|
East |
|
3 |
|
538 |
|
94.0% |
|
274 |
|
100.0% |
|
116 |
|
100.0% |
|
46 |
|
87.6% |
|
102 |
|
74.1% |
|
West |
|
3 |
|
140 |
|
78.6% |
|
110 |
|
72.8% |
|
27 |
|
100.0% |
|
- |
|
- |
|
3 |
|
100.0% |
|
South |
|
16 |
|
3,565 |
|
93.9% |
|
1,761 |
|
98.4% |
|
457 |
|
95.0% |
|
488 |
|
87.6% |
|
859 |
|
87.8% |
|
Total - Unconsolidated at 100% |
|
23 |
|
4,464 |
|
93.7% |
|
2,218 |
|
97.4% |
|
728 |
|
96.8% |
|
540 |
|
87.7% |
|
978 |
|
86.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Pro Rata Retail Operating Portfolio (b): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
25,000+ sq ft |
|
10,000-24,999 sq ft |
|
5,000-9,999 sq ft |
|
0-4,999 sq ft |
| ||||||||||
Property Type/Region |
|
Number of |
|
GLA |
|
Occupancy |
|
GLA |
|
Occupancy |
|
GLA |
|
Occupancy |
|
GLA |
|
Occupancy |
|
GLA |
|
Occupancy |
|
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North |
|
84 |
|
10,671 |
|
91.6% |
|
6,581 |
|
96.3% |
|
1,922 |
|
90.7% |
|
946 |
|
83.4% |
|
1,222 |
|
74.6% |
|
East |
|
70 |
|
8,724 |
|
91.2% |
|
4,727 |
|
96.0% |
|
1,622 |
|
92.6% |
|
790 |
|
89.8% |
|
1,585 |
|
75.9% |
|
West |
|
54 |
|
8,175 |
|
80.9% |
|
5,057 |
|
82.3% |
|
1,279 |
|
84.4% |
|
729 |
|
75.3% |
|
1,110 |
|
74.5% |
|
South |
|
74 |
|
8,302 |
|
87.8% |
|
3,647 |
|
92.8% |
|
1,542 |
|
89.3% |
|
1,138 |
|
84.4% |
|
1,975 |
|
79.3% |
|
Total - Pro Rata Share |
|
282 |
|
35,872 |
|
88.2% |
|
20,012 |
|
92.0% |
|
6,365 |
|
89.6% |
|
3,603 |
|
83.5% |
|
5,892 |
|
76.5% |
|
(a) |
Based on leases commenced as of June 30, 2012 and calculated as occupied GLA divided by total GLA. |
|
|
(b) |
Includes our consolidated retail operating properties plus our pro rata share of unconsolidated retail operating properties. |
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Top Tenants as of June 30, 2012
(dollar amounts and square footage in thousands)
The following table sets forth information regarding the 20 largest tenants in our retail operating portfolio, including our pro rata share of unconsolidated joint ventures, based on ABR as of June 30, 2012. Dollars (other than per square foot information) and square feet of GLA are presented in thousands.
Tenant (a) |
|
Primary DBA |
|
Number |
|
Occupied |
|
% of |
|
ABR |
|
% of Total |
|
ABR per |
| |||
Best Buy Co, Inc. |
|
Best Buy, Pacific Sales |
|
30 |
|
1,069 |
|
3.4% |
|
$ |
14,568 |
|
3.3% |
|
$ |
13.63 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ahold USA, Inc. |
|
Giant Foods, Stop & Shop |
|
11 |
|
661 |
|
2.1% |
|
12,935 |
|
2.9% |
|
19.56 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
The TJX Companies Inc |
|
HomeGoods, Marshalls, TJ Maxx |
|
47 |
|
1,242 |
|
3.9% |
|
11,770 |
|
2.6% |
|
9.48 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Rite Aid Corporation |
|
|
|
35 |
|
425 |
|
1.3% |
|
10,399 |
|
2.3% |
|
24.49 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
PetSmart, Inc. |
|
|
|
39 |
|
707 |
|
2.2% |
|
9,821 |
|
2.2% |
|
13.89 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ross Stores, Inc. |
|
|
|
38 |
|
990 |
|
3.1% |
|
9,448 |
|
2.1% |
|
9.54 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Bed Bath & Beyond Inc. |
|
Bed Bath & Beyond, Buy Buy Baby, The Christmas Tree Shops |
|
28 |
|
726 |
|
2.3% |
|
9,232 |
|
2.1% |
|
12.71 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
The Home Depot, Inc. |
|
|
|
9 |
|
1,097 |
|
3.5% |
|
9,135 |
|
2.0% |
|
8.33 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Kohls Corporation |
|
|
|
14 |
|
1,143 |
|
3.6% |
|
8,095 |
|
1.8% |
|
7.08 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
The Sports Authority, Inc. |
|
|
|
17 |
|
690 |
|
2.2% |
|
7,952 |
|
1.8% |
|
11.53 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
SUPERVALU INC. |
|
Acme, Jewel-Osco, Save-A-Lot, Shaws Supermarkets, Shop N Save, Shoppers Food Warehouse |
|
10 |
|
562 |
|
1.8% |
|
7,705 |
|
1.7% |
|
13.71 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Pier 1 Imports, Inc. |
|
|
|
39 |
|
390 |
|
1.2% |
|
7,252 |
|
1.6% |
|
18.59 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Publix Super Markets Inc. |
|
|
|
15 |
|
634 |
|
2.0% |
|
6,703 |
|
1.5% |
|
10.57 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Michaels Stores, Inc. |
|
|
|
29 |
|
588 |
|
1.9% |
|
6,592 |
|
1.5% |
|
11.20 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Edwards Theaters, Inc. |
|
|
|
2 |
|
219 |
|
0.7% |
|
6,558 |
|
1.5% |
|
29.92 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Dicks Sporting Goods, Inc. |
|
Dicks Sporting Goods, Golf Galaxy |
|
13 |
|
568 |
|
1.8% |
|
6,525 |
|
1.5% |
|
11.48 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Wal-Mart Stores, Inc. |
|
Wal-Mart, Sams Club |
|
6 |
|
903 |
|
2.9% |
|
5,985 |
|
1.3% |
|
6.63 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Office Depot, Inc. |
|
|
|
22 |
|
439 |
|
1.4% |
|
5,737 |
|
1.3% |
|
13.09 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Staples, Inc. |
|
|
|
18 |
|
342 |
|
1.1% |
|
4,663 |
|
1.0% |
|
13.63 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Rave Cinemas, LLC |
|
|
|
2 |
|
162 |
|
0.5% |
|
4,626 |
|
1.0% |
|
28.53 |
| |||
Total Top Tenants |
|
|
|
424 |
|
13,557 |
|
42.9% |
|
$ |
165,701 |
|
37.0% |
|
$ |
12.22 |
| |
(a) |
Excludes two office tenants, Aon Corporation consisting of 1,162 of GLA and $15,106 of ABR and Zurich American Insurance Company, consisting of 895 of GLA and $10,476 of ABR, and one industrial tenant, Cost Plus consisting of 1,036 of GLA and $5,242 of ABR. |
|
|
(b) |
Represents the percentage of total occupied GLA of our retail operating portfolio including our pro rata share of unconsolidated joint ventures. |
|
|
(c) |
Represents the percentage of total annualized base rent from our retail operating portfolio including our pro rata share of unconsolidated joint ventures. |
|
|
(d) |
Represents annualized base rent divided by occupied GLA. |
Retail Properties of America, Inc.
Retail Leasing Activity Summary
(square footage amounts in thousands)
The following table summarizes the leasing activity in our retail operating portfolio including our pro rata share of unconsolidated joint ventures as of June 30, 2012 and for the preceding four quarters. Leases of less than 12 months have been excluded.
Total Leases
|
|
Number of |
|
GLA Signed |
|
New Contractual |
|
Prior |
|
% Change |
|
WA Lease |
|
Tenant | |||
Q2 2012 |
|
174 |
|
727 |
|
$ |
18.59 |
|
$ |
17.70 |
|
5.03% |
|
6.00 |
|
$ |
10.31 |
Q1 2012 |
|
154 |
|
729 |
|
$ |
19.49 |
|
$ |
19.44 |
|
0.26% |
|
6.74 |
|
$ |
19.01 |
Q4 2011 |
|
144 |
|
1,104 |
|
$ |
14.49 |
|
$ |
14.52 |
|
(0.21%) |
|
7.59 |
|
$ |
11.19 |
Q3 2011 |
|
184 |
|
1,189 |
|
$ |
15.13 |
|
$ |
15.04 |
|
0.60% |
|
6.27 |
|
$ |
10.97 |
Total - 12 months |
|
656 |
|
3,749 |
|
$ |
16.43 |
|
$ |
16.22 |
|
1.29% |
|
6.65 |
|
$ |
12.47 |
Comparable Renewal Leases
|
|
Number of |
|
GLA Signed |
|
New Contractual |
|
Prior |
|
% Change |
|
WA Lease |
|
Tenant | |||
Q2 2012 |
|
101 |
|
345 |
|
$ |
18.79 |
|
$ |
18.02 |
|
4.27% |
|
4.18 |
|
$ |
1.02 |
Q1 2012 |
|
81 |
|
257 |
|
$ |
22.10 |
|
$ |
21.09 |
|
4.79% |
|
4.64 |
|
$ |
1.04 |
Q4 2011 |
|
79 |
|
586 |
|
$ |
14.54 |
|
$ |
14.31 |
|
1.61% |
|
7.70 |
|
$ |
4.54 |
Q3 2011 |
|
106 |
|
683 |
|
$ |
14.50 |
|
$ |
14.46 |
|
0.28% |
|
4.46 |
|
$ |
0.59 |
Total - 12 months |
|
367 |
|
1,871 |
|
$ |
16.35 |
|
$ |
15.98 |
|
2.32% |
|
5.34 |
|
$ |
1.97 |
Comparable New Leases
|
|
Number of |
|
GLA Signed |
|
New Contractual |
|
Prior |
|
% Change |
|
WA Lease |
|
Tenant | |||
Q2 2012 |
|
17 |
|
106 |
|
$ |
17.93 |
|
$ |
16.68 |
|
7.49% |
|
8.51 |
|
$ |
32.85 |
Q1 2012 |
|
24 |
|
158 |
|
$ |
15.25 |
|
$ |
16.77 |
|
(9.06%) |
|
9.10 |
|
$ |
37.91 |
Q4 2011 |
|
13 |
|
77 |
|
$ |
14.09 |
|
$ |
16.11 |
|
(12.54%) |
|
8.22 |
|
$ |
23.10 |
Q3 2011 |
|
17 |
|
65 |
|
$ |
21.86 |
|
$ |
21.14 |
|
3.41% |
|
7.71 |
|
$ |
24.64 |
Total - 12 months |
|
71 |
|
406 |
|
$ |
16.78 |
|
$ |
17.32 |
|
(3.12%) |
|
8.51 |
|
$ |
31.67 |
Non-Comparable New and Renewal Leases (b)
|
|
Number of |
|
GLA Signed |
|
New Contractual |
|
Prior |
|
% Change |
|
WA Lease |
|
Tenant | ||
Q2 2012 |
|
56 |
|
276 |
|
$ |
15.51 |
|
n/a |
|
n/a |
|
7.74 |
|
$ |
13.22 |
Q1 2012 |
|
49 |
|
314 |
|
$ |
13.43 |
|
n/a |
|
n/a |
|
8.17 |
|
$ |
24.20 |
Q4 2011 |
|
52 |
|
441 |
|
$ |
10.75 |
|
n/a |
|
n/a |
|
7.25 |
|
$ |
17.96 |
Q3 2011 |
|
61 |
|
441 |
|
$ |
16.04 |
|
n/a |
|
n/a |
|
8.81 |
|
$ |
25.04 |
Total - 12 months |
|
218 |
|
1,472 |
|
$ |
13.67 |
|
n/a |
|
n/a |
|
8.06 |
|
$ |
20.52 |
(a) |
Total excludes the impact of Non-Comparable Leases. |
|
|
(b) |
Includes leases signed on units that were vacant for over 12 months, leases signed without fixed rental payments and leases signed for fixed rental payments inclusive of expense reimbursement. |
Retail Properties of America, Inc.
Retail Lease Expirations as of June 30, 2012
(dollar amounts and square footage in thousands)
The following tables set forth a summary, as of June 30, 2012, of lease expirations scheduled to occur during the remainder of 2012 and each of the ten calendar years from 2013 to 2022 and thereafter, assuming no exercise of renewal options or early termination rights for all leases in our retail operating portfolio including our pro rata share of unconsolidated joint ventures. The following tables are based on leases commenced as of June 30, 2012. Dollars (other than per square foot information) and square feet of GLA are presented in thousands in the table.
Lease Expiration Year |
|
GLA |
|
% of |
|
% of Total |
|
ABR |
|
% of Total |
|
ABR per |
|
ABR at Exp. (b) |
|
ABR Per | ||||
2012 |
|
679 |
|
2.2% |
|
1.9% |
|
$ |
13,152 |
|
2.9% |
|
$ |
19.38 |
|
$ |
13,152 |
|
$ |
19.38 |
2013 |
|
2,703 |
|
8.6% |
|
7.6% |
|
44,031 |
|
9.8% |
|
16.29 |
|
44,426 |
|
16.44 | ||||
2014 |
|
4,097 |
|
13.0% |
|
11.3% |
|
63,789 |
|
14.2% |
|
15.57 |
|
64,487 |
|
15.74 | ||||
2015 |
|
3,465 |
|
10.9% |
|
9.7% |
|
50,003 |
|
11.2% |
|
14.43 |
|
51,079 |
|
14.74 | ||||
2016 |
|
2,827 |
|
9.0% |
|
7.9% |
|
44,976 |
|
10.1% |
|
15.91 |
|
46,360 |
|
16.40 | ||||
2017 |
|
2,602 |
|
8.2% |
|
7.3% |
|
37,341 |
|
8.3% |
|
14.35 |
|
38,942 |
|
14.97 | ||||
2018 |
|
1,364 |
|
4.3% |
|
3.8% |
|
21,192 |
|
4.7% |
|
15.54 |
|
22,968 |
|
16.84 | ||||
2019 |
|
1,858 |
|
5.8% |
|
5.1% |
|
26,703 |
|
6.0% |
|
14.37 |
|
28,310 |
|
15.23 | ||||
2020 |
|
2,115 |
|
6.6% |
|
5.9% |
|
24,835 |
|
5.5% |
|
11.74 |
|
26,465 |
|
12.51 | ||||
2021 |
|
2,078 |
|
6.6% |
|
5.8% |
|
28,138 |
|
6.3% |
|
13.54 |
|
30,409 |
|
14.63 | ||||
2022 |
|
2,215 |
|
7.0% |
|
6.2% |
|
25,248 |
|
5.6% |
|
11.40 |
|
26,896 |
|
12.15 | ||||
Thereafter |
|
5,500 |
|
17.4% |
|
15.3% |
|
66,665 |
|
14.9% |
|
12.12 |
|
72,145 |
|
13.12 | ||||
Month to month |
|
136 |
|
0.4% |
|
0.4% |
|
2,315 |
|
0.5% |
|
16.99 |
|
2,315 |
|
16.99 | ||||
Leased Total |
|
31,639 |
|
100.0% |
|
88.2% |
|
$ |
448,388 |
|
100.0% |
|
14.17 |
|
$ |
467,954 |
|
$ |
14.79 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Leases signed but not commenced |
|
1,074 |
|
- |
|
2.9% |
|
$ |
14,151 |
|
- |
|
$ |
13.18 |
|
$ |
14,276 |
|
$ |
13.30 |
Available |
|
3,159 |
|
- |
|
8.9% |
|
|
|
|
|
|
|
|
|
|
The following tables break down the above information into anchor (10,000 sf and above) and non-anchor (under 10,000 sf) details for our retail operating portfolio. Dollars (other than per square foot information) and square feet of GLA are presented in thousands in the table.
Anchor
Lease Expiration Year |
|
GLA |
|
% of |
|
% of Total |
|
ABR |
|
% of Total |
|
ABR per |
|
ABR at Exp. (b) |
|
ABR Per | ||||
2012 |
|
180 |
|
0.6% |
|
0.5% |
|
$ |
2,806 |
|
0.6% |
|
$ |
15.60 |
|
$ |
2,806 |
|
$ |
15.60 |
2013 |
|
1,321 |
|
4.2% |
|
3.7% |
|
13,949 |
|
3.1% |
|
10.56 |
|
14,140 |
|
10.70 | ||||
2014 |
|
2,550 |
|
8.1% |
|
7.1% |
|
29,497 |
|
6.6% |
|
11.57 |
|
29,530 |
|
11.58 | ||||
2015 |
|
2,440 |
|
7.7% |
|
6.8% |
|
27,626 |
|
6.2% |
|
11.32 |
|
27,882 |
|
11.43 | ||||
2016 |
|
1,979 |
|
6.3% |
|
5.5% |
|
25,002 |
|
5.6% |
|
12.64 |
|
25,487 |
|
12.88 | ||||
2017 |
|
1,895 |
|
6.0% |
|
5.3% |
|
20,234 |
|
4.5% |
|
10.68 |
|
20,580 |
|
10.86 | ||||
2018 |
|
1,040 |
|
3.3% |
|
2.9% |
|
13,439 |
|
3.0% |
|
12.92 |
|
14,248 |
|
13.70 | ||||
2019 |
|
1,628 |
|
5.1% |
|
4.5% |
|
21,370 |
|
4.8% |
|
13.12 |
|
22,442 |
|
13.78 | ||||
2020 |
|
1,914 |
|
6.0% |
|
5.3% |
|
19,940 |
|
4.4% |
|
10.42 |
|
21,021 |
|
10.98 | ||||
2021 |
|
1,827 |
|
5.8% |
|
5.1% |
|
22,773 |
|
5.1% |
|
12.46 |
|
24,348 |
|
13.32 | ||||
2022 |
|
2,071 |
|
6.5% |
|
5.8% |
|
21,752 |
|
4.8% |
|
10.51 |
|
22,857 |
|
11.04 | ||||
Thereafter |
|
5,221 |
|
16.5% |
|
14.5% |
|
59,489 |
|
13.3% |
|
11.40 |
|
63,253 |
|
12.12 | ||||
Month to month |
|
45 |
|
0.1% |
|
0.1% |
|
485 |
|
0.1% |
|
10.84 |
|
485 |
|
10.84 | ||||
Leased Total |
|
24,111 |
|
76.2% |
|
67.1% |
|
$ |
278,362 |
|
62.1% |
|
$ |
11.54 |
|
$ |
289,079 |
|
$ |
11.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Leases signed but not commenced |
|
840 |
|
- |
|
2.2% |
|
$ |
9,275 |
|
- |
|
$ |
11.04 |
|
$ |
9,315 |
|
$ |
11.09 |
Non-Anchor
Lease Expiration Year |
|
GLA |
|
% of |
|
% of Total |
|
ABR |
|
% of Total |
|
ABR per |
|
ABR at Exp. (b) |
|
ABR Per | ||||
2012 |
|
499 |
|
1.6% |
|
1.4% |
|
$ |
10,346 |
|
2.3% |
|
$ |
20.75 |
|
$ |
10,346 |
|
$ |
20.75 |
2013 |
|
1,382 |
|
4.4% |
|
3.9% |
|
30,082 |
|
6.7% |
|
21.77 |
|
30,286 |
|
21.92 | ||||
2014 |
|
1,547 |
|
4.9% |
|
4.2% |
|
34,292 |
|
7.6% |
|
22.17 |
|
34,957 |
|
22.60 | ||||
2015 |
|
1,025 |
|
3.2% |
|
2.9% |
|
22,377 |
|
5.0% |
|
21.83 |
|
23,197 |
|
22.63 | ||||
2016 |
|
848 |
|
2.7% |
|
2.4% |
|
19,974 |
|
4.5% |
|
23.56 |
|
20,873 |
|
24.62 | ||||
2017 |
|
707 |
|
2.2% |
|
2.0% |
|
17,107 |
|
3.8% |
|
24.20 |
|
18,362 |
|
25.98 | ||||
2018 |
|
324 |
|
1.0% |
|
0.9% |
|
7,753 |
|
1.7% |
|
23.95 |
|
8,720 |
|
26.94 | ||||
2019 |
|
230 |
|
0.7% |
|
0.6% |
|
5,333 |
|
1.2% |
|
23.21 |
|
5,868 |
|
25.54 | ||||
2020 |
|
201 |
|
0.6% |
|
0.6% |
|
4,895 |
|
1.1% |
|
24.38 |
|
5,444 |
|
27.12 | ||||
2021 |
|
251 |
|
0.8% |
|
0.7% |
|
5,365 |
|
1.2% |
|
21.38 |
|
6,061 |
|
24.15 | ||||
2022 |
|
144 |
|
0.5% |
|
0.4% |
|
3,496 |
|
0.8% |
|
24.33 |
|
4,039 |
|
28.11 | ||||
Thereafter |
|
279 |
|
0.9% |
|
0.8% |
|
7,176 |
|
1.6% |
|
25.73 |
|
8,892 |
|
31.88 | ||||
Month to month |
|
91 |
|
0.3% |
|
0.3% |
|
1,830 |
|
0.4% |
|
20.01 |
|
1,830 |
|
20.01 | ||||
Leased Total |
|
7,528 |
|
23.8% |
|
21.1% |
|
$ |
170,026 |
|
37.9% |
|
$ |
22.59 |
|
$ |
178,875 |
|
$ |
23.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Leases signed but not commenced |
|
234 |
|
- |
|
0.7% |
|
$ |
4,876 |
|
- |
|
$ |
20.85 |
|
$ |
4,961 |
|
$ |
21.21 |
(a) |
Represents annualized base rent divided by occupied GLA. |
|
|
(b) |
Represents annualized base rent at the scheduled expiration of the lease giving effect to contractual increases in base rent. Does not reflect contractual increases based on the Consumer Price Index. |
|
|
(c) |
Represents annualized base rent at the scheduled expiration of the lease, giving effect to contractual increases in base rent, divided by occupied GLA. Does not reflect contractual increases based on the Consumer Price Index. |
Retail Properties of America, Inc.
Unconsolidated Joint Venture Combined Financial Statements
(amounts in thousands)
Total Unconsolidated Joint Venture Combined Balance Sheets (a)
|
|
June 30, |
|
December 31, | ||||
|
|
2012 |
|
2011 | ||||
|
|
|
|
|
|
| ||
Real estate assets |
|
$ |
721,922 |
|
|
$ |
729,429 |
|
Less: accumulated depreciation |
|
(55,358 |
) |
|
(49,903 |
) | ||
Real estate, net |
|
666,564 |
|
|
679,526 |
| ||
|
|
|
|
|
|
| ||
Cash and cash equivalents |
|
10,456 |
|
|
66,007 |
| ||
Receivables, net |
|
8,872 |
|
|
8,443 |
| ||
Acquired lease intangibles, net |
|
144,351 |
|
|
155,706 |
| ||
Other assets, net |
|
14,984 |
|
|
13,444 |
| ||
Total assets |
|
$ |
845,227 |
|
|
$ |
923,126 |
|
|
|
|
|
|
|
| ||
Mortgage debt (includes unamortized premium of $3,870 and $4,769, respectively, and unamortized discount of $(1,086) and $(1,225), respectively) |
|
$ |
489,348 |
|
|
$ |
491,398 |
|
Accounts payable and accrued expenses |
|
9,893 |
|
|
12,485 |
| ||
Acquired below market lease intangibles, net |
|
16,002 |
|
|
16,513 |
| ||
Other liabilities |
|
27,314 |
|
|
31,767 |
| ||
Total liabilities |
|
542,557 |
|
|
552,163 |
| ||
|
|
|
|
|
|
| ||
Total equity |
|
302,670 |
|
|
370,963 |
| ||
Total liabilities and equity |
|
$ |
845,227 |
|
|
$ |
923,126 |
|
RPAI Pro Rata Unconsolidated Joint Venture Combined Balance Sheets (b)
|
|
June 30, |
|
December 31, | ||||
|
|
2012 |
|
2011 | ||||
|
|
|
|
|
|
| ||
Real estate assets |
|
$ |
157,735 |
|
|
$ |
162,220 |
|
Less: accumulated depreciation |
|
(12,619 |
) |
|
(11,652 |
) | ||
Real estate, net |
|
145,116 |
|
|
150,568 |
| ||
|
|
|
|
|
|
| ||
Cash and cash equivalents |
|
2,157 |
|
|
13,238 |
| ||
Receivables, net |
|
2,076 |
|
|
2,156 |
| ||
Acquired lease intangibles, net |
|
28,870 |
|
|
31,141 |
| ||
Other assets, net |
|
3,526 |
|
|
3,340 |
| ||
Total assets |
|
$ |
181,745 |
|
|
$ |
200,443 |
|
|
|
|
|
|
|
| ||
Mortgage debt (includes unamortized premium of $2,779 and $3,423, respectively, and unamortized discount of $(217) and $(245), respectively) |
|
$ |
112,071 |
|
|
$ |
114,382 |
|
Accounts payable and accrued expenses |
|
2,132 |
|
|
2,812 |
| ||
Acquired below market lease intangibles, net |
|
3,200 |
|
|
3,303 |
| ||
Other liabilities |
|
5,473 |
|
|
6,364 |
| ||
Total liabilities |
|
122,876 |
|
|
126,861 |
| ||
|
|
|
|
|
|
| ||
Total equity |
|
58,869 |
|
|
73,582 |
| ||
Total liabilities and equity |
|
$ |
181,745 |
|
|
$ |
200,443 |
|
(a) |
Represents combined balance sheets of our RioCan, MS Inland and Hampton unconsolidated joint ventures. |
|
|
(b) |
Represents our pro rata share of the combined balance sheets of our RioCan, MS Inland and Hampton unconsolidated joint ventures. |
Retail Properties of America, Inc.
Unconsolidated Joint Venture Combined Financial Statements
(amounts in thousands)
Total Unconsolidated Joint Venture Combined Statements of Operations (a)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, | ||||||||||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Rental income |
|
$ |
16,615 |
|
|
$ |
9,108 |
|
|
$ |
32,786 |
|
|
$ |
18,126 |
|
Tenant recovery income |
|
5,624 |
|
|
2,924 |
|
|
11,074 |
|
|
5,762 |
| ||||
Other property income |
|
72 |
|
|
219 |
|
|
214 |
|
|
308 |
| ||||
Total revenues |
|
22,311 |
|
|
12,251 |
|
|
44,074 |
|
|
24,196 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Property operating expenses |
|
4,073 |
|
|
1,559 |
|
|
7,028 |
|
|
3,390 |
| ||||
Real estate taxes |
|
3,766 |
|
|
2,063 |
|
|
7,536 |
|
|
3,924 |
| ||||
Depreciation and amortization |
|
12,658 |
|
|
6,049 |
|
|
25,251 |
|
|
12,151 |
| ||||
Provision for impairment of investment properties |
|
- |
|
|
- |
|
|
988 |
|
|
- |
| ||||
Loss on lease terminations |
|
168 |
|
|
136 |
|
|
1,022 |
|
|
136 |
| ||||
General and administrative expenses |
|
220 |
|
|
197 |
|
|
757 |
|
|
391 |
| ||||
Other operating expenses |
|
- |
|
|
- |
|
|
842 |
|
|
- |
| ||||
Total expenses |
|
20,885 |
|
|
10,004 |
|
|
43,424 |
|
|
19,992 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating income |
|
1,426 |
|
|
2,247 |
|
|
650 |
|
|
4,204 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest expense |
|
(5,169 |
) |
|
(3,522 |
) |
|
(10,443 |
) |
|
(6,945 |
) | ||||
Other income, net |
|
150 |
|
|
2 |
|
|
175 |
|
|
3 |
| ||||
Loss from continuing operations |
|
(3,593 |
) |
|
(1,273 |
) |
|
(9,618 |
) |
|
(2,738 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating loss, net |
|
(15 |
) |
|
(1,868 |
) |
|
(793 |
) |
|
(4,811 |
) | ||||
Gain on sales of investment properties |
|
- |
|
|
- |
|
|
2,444 |
|
|
- |
| ||||
(Loss) income from discontinued operations |
|
(15 |
) |
|
(1,868 |
) |
|
1,651 |
|
|
(4,811 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net loss |
|
$ |
(3,608 |
) |
|
$ |
(3,141 |
) |
|
$ |
(7,967 |
) |
|
$ |
(7,549 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Funds From Operations (FFO) (b) |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net loss |
|
$ |
(3,608 |
) |
|
$ |
(3,141 |
) |
|
$ |
(7,967 |
) |
|
$ |
(7,549 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Depreciation and amortization |
|
12,830 |
|
|
6,478 |
|
|
26,495 |
|
|
12,885 |
| ||||
Provision for impairment of investment properties |
|
65 |
|
|
1,590 |
|
|
1,522 |
|
|
4,067 |
| ||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Gain on sales of investment properties |
|
- |
|
|
- |
|
|
(2,444 |
) |
|
- |
| ||||
FFO |
|
$ |
9,287 |
|
|
$ |
4,927 |
|
|
$ |
17,606 |
|
|
$ |
9,403 |
|
(a) |
Represents combined statements of operations of our RioCan, MS Inland and Hampton unconsolidated joint ventures. |
|
|
(b) |
Refer to page 19 for definition of FFO. |
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Unconsolidated Joint Venture Combined Financial Statements
(amounts in thousands)
RPAI Pro Rata Unconsolidated Joint Venture Combined Statements of Operations (a)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, | ||||||||||||
|
|
2012 (b) |
|
2011 (b) |
|
2012 (b) |
|
2011 (b) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Rental income |
|
$ |
3,602 |
|
|
$ |
2,205 |
|
|
$ |
7,075 |
|
|
$ |
4,428 |
|
Tenant recovery income |
|
1,195 |
|
|
740 |
|
|
2,343 |
|
|
1,427 |
| ||||
Other property income |
|
29 |
|
|
46 |
|
|
58 |
|
|
64 |
| ||||
Total revenues |
|
4,826 |
|
|
2,991 |
|
|
9,476 |
|
|
5,919 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Property operating expenses |
|
705 |
|
|
391 |
|
|
1,180 |
|
|
858 |
| ||||
Real estate taxes |
|
808 |
|
|
497 |
|
|
1,632 |
|
|
931 |
| ||||
Depreciation and amortization |
|
2,659 |
|
|
1,409 |
|
|
5,358 |
|
|
2,827 |
| ||||
Provision for impairment of investment properties |
|
- |
|
|
- |
|
|
947 |
|
|
- |
| ||||
Loss on lease terminations |
|
34 |
|
|
27 |
|
|
204 |
|
|
27 |
| ||||
General and administrative expenses |
|
46 |
|
|
40 |
|
|
159 |
|
|
103 |
| ||||
Other operating expenses |
|
- |
|
|
- |
|
|
- |
|
|
- |
| ||||
Total expenses |
|
4,252 |
|
|
2,364 |
|
|
9,480 |
|
|
4,746 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating income |
|
574 |
|
|
627 |
|
|
(4 |
) |
|
1,173 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest expense |
|
(982 |
) |
|
(750 |
) |
|
(2,032 |
) |
|
(1,479 |
) | ||||
Other income, net |
|
30 |
|
|
1 |
|
|
25 |
|
|
1 |
| ||||
Loss from continuing operations |
|
(378 |
) |
|
(122 |
) |
|
(2,011 |
) |
|
(305 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating loss, net |
|
(81 |
) |
|
(1,544 |
) |
|
(578 |
) |
|
(4,009 |
) | ||||
Gain on sales of investment properties |
|
- |
|
|
- |
|
|
- |
|
|
- |
| ||||
Loss from discontinued operations |
|
(81 |
) |
|
(1,544 |
) |
|
(578 |
) |
|
(4,009 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net loss |
|
$ |
(459 |
) |
|
$ |
(1,666 |
) |
|
$ |
(2,589 |
) |
|
$ |
(4,314 |
) |
RPAI ownership adjustments (c) |
|
(827 |
) |
|
(315 |
) |
|
(1,015 |
) |
|
155 |
| ||||
Net loss attributable to RPAIs ownership interests |
|
$ |
(1,286 |
) |
|
$ |
(1,981 |
) |
|
$ |
(3,604 |
) |
|
$ |
(4,159 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Funds From Operations (FFO) (d) |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net loss attributable to RPAIs ownership interests |
|
$ |
(1,286 |
) |
|
$ |
(1,981 |
) |
|
$ |
(3,604 |
) |
|
$ |
(4,159 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Depreciation and amortization |
|
2,697 |
|
|
1,442 |
|
|
5,577 |
|
|
2,876 |
| ||||
Provision for impairment of investment properties |
|
175 |
|
|
1,523 |
|
|
1,230 |
|
|
3,897 |
| ||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Gain on sales of investment properties |
|
- |
|
|
- |
|
|
- |
|
|
- |
| ||||
FFO |
|
$ |
1,586 |
|
|
$ |
984 |
|
|
$ |
3,203 |
|
|
$ |
2,614 |
|
(a) |
Represents our pro rata share of the combined net loss of our RioCan, MS Inland and Hampton unconsolidated joint ventures. |
|
|
(b) |
Amounts shown net of intercompany eliminations and GAAP adjustments for a real estate transaction between joint ventures due to our continuing involvement in the property. |
|
|
(c) |
Represents adjustments to reflect RPAIs investment basis and other unconsolidated joint venture activity, inclusive of outside basis amortization, deferral of loss recognition pursuant to GAAP requirements and activity of our captive insurance plan, Oak Property and Casualty LLC. |
|
|
(d) |
Refer to page 19 for definition of FFO. |
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Unconsolidated Joint Venture Overview and Debt Summary as of June 30, 2012
(dollar amounts and square footage in thousands)
Unconsolidated Joint Venture Overview
|
|
|
|
|
|
At 100% |
|
Pro Rata Share | ||||||||||||||||
|
|
|
|
Number |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
Ownership |
|
of Operating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Joint Venture |
|
Interest |
|
Properties |
|
GLA |
|
ABR |
|
Debt (a) |
|
GLA |
|
ABR |
|
Debt (b) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
MS Inland |
|
20.0% |
|
6 |
|
1,195 |
|
$ |
19,789 |
|
|
$ |
156,896 |
|
|
239 |
|
$ |
3,958 |
|
|
$ |
31,379 |
|
Hampton Retail Colorado |
|
95.9% |
|
3 |
|
140 |
|
1,413 |
|
|
16,068 |
|
|
134 |
|
1,355 |
|
|
15,410 |
| ||||
RioCan |
|
20.0% |
|
14 |
|
3,129 |
|
44,523 |
|
|
313,600 |
|
|
626 |
|
8,904 |
|
|
62,720 |
| ||||
|
|
|
|
23 |
|
4,464 |
|
$ |
65,725 |
|
|
$ |
486,564 |
|
|
999 |
|
$ |
14,217 |
|
|
$ |
109,509 |
|
Unconsolidated Joint Venture Debt Summary
|
|
At 100% |
|
Pro Rata Share | |||||||||||||||
|
|
Debt (a) |
|
Interest |
|
Years to |
|
Debt (b) |
|
Interest |
|
Years to | |||||||
Fixed rate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Mortgages payable |
|
$ |
366,146 |
|
|
4.97% |
|
|
5.4 years |
|
$ |
73,229 |
|
|
4.97% |
|
|
5.4 years |
|
Construction loans |
|
16,068 |
|
|
5.40% |
|
(c) |
2.2 years |
|
15,410 |
|
|
5.40% |
|
(c) |
2.2 years |
| ||
|
|
382,214 |
|
|
|
|
|
|
|
88,639 |
|
|
|
|
|
|
| ||
Variable rate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Mortgages payable |
|
104,350 |
|
|
2.54% |
|
|
2.5 years |
|
20,870 |
|
|
2.54% |
|
|
2.5 years |
| ||
Total |
|
$ |
486,564 |
|
|
4.47% |
|
|
4.6 years |
|
$ |
109,509 |
|
|
4.57% |
|
|
4.4 years |
|
Total Unconsolidated Joint Venture Debt Maturity Schedule as of June 30, 2012
Year |
|
Principal |
|
Principal Payoff |
|
Total (a) |
|
% of Total |
|
WA Rates on |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||
2012 |
|
$ |
1,274 |
|
$ |
12,878 |
|
$ |
14,152 |
|
2.9% |
|
6.77% |
|
2013 |
|
2,312 |
|
34,615 |
|
36,927 |
|
7.6% |
|
5.74% |
| |||
2014 |
|
2,554 |
|
120,418 |
|
122,972 |
|
25.3% |
|
2.97% |
| |||
2015 |
|
3,179 |
|
78,825 |
|
82,004 |
|
16.8% |
|
5.47% |
| |||
2016 |
|
2,636 |
|
29,112 |
|
31,748 |
|
6.5% |
|
3.68% |
| |||
2017 |
|
2,449 |
|
44,126 |
|
46,575 |
|
9.6% |
|
4.44% |
| |||
2018 |
|
1,366 |
|
56,891 |
|
58,257 |
|
12.0% |
|
4.54% |
| |||
Thereafter |
|
3,017 |
|
90,912 |
|
93,929 |
|
19.3% |
|
4.93% |
| |||
Total |
|
$ |
18,787 |
|
$ |
467,777 |
|
$ |
486,564 |
|
100.0% |
|
4.47% |
|
RPAI Pro Rata Unconsolidated Joint Venture Debt Maturity Schedule as of June 30, 2012
Year |
|
Principal |
|
Principal Payoff |
|
Total (b) |
|
% of Total |
|
WA Rates on |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||
2012 |
|
$ |
255 |
|
$ |
2,576 |
|
$ |
2,831 |
|
2.6% |
|
6.77% |
|
2013 |
|
462 |
|
6,923 |
|
7,385 |
|
6.7% |
|
5.74% |
| |||
2014 |
|
511 |
|
36,280 |
|
36,791 |
|
33.6% |
|
3.78% |
| |||
2015 |
|
636 |
|
15,765 |
|
16,401 |
|
15.0% |
|
5.47% |
| |||
2016 |
|
528 |
|
5,822 |
|
6,350 |
|
5.8% |
|
3.68% |
| |||
2017 |
|
490 |
|
8,825 |
|
9,315 |
|
8.5% |
|
4.44% |
| |||
2018 |
|
273 |
|
11,378 |
|
11,651 |
|
10.6% |
|
4.54% |
| |||
Thereafter |
|
603 |
|
18,182 |
|
18,785 |
|
17.2% |
|
4.93% |
| |||
Total |
|
$ |
3,758 |
|
$ |
105,751 |
|
$ |
109,509 |
|
100.0% |
|
4.57% |
|
(a) |
Does not include any premium or discount, of which $3,870 and $(1,086), net of accumulated amortization, respectively, is outstanding as of June 30, 2012. |
|
|
(b) |
Does not include our pro rata share of premium or discount, of which $2,779 and $(217), net of accumulated amortization, respectively, is outstanding as of June 30, 2012. |
|
|
(c) |
The interest rate increases to 6.15% on September 5, 2012 and to 6.90% on September 5, 2013. |
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Non-GAAP Financial Measures
Funds From Operations (FFO)
As defined by the National Association of Real Estate Investment Trusts (NAREIT), an industry trade group, Funds from Operations (FFO) means net (loss) income computed in accordance with generally accepted accounting principles (GAAP), excluding gains (or losses) from sales of investment properties, plus depreciation and amortization and impairment charges on investment properties, including adjustments for unconsolidated joint ventures in which we hold an interest. We have adopted the NAREIT definition in our computation of FFO and believe that FFO, which is a non-GAAP performance measure, provides an additional and useful means to assess the operating performance of real estate investment trusts (REITs). We believe that, subject to the following limitations, FFO provides a basis for comparing our performance and operations to those of other REITs. FFO is not intended to be an alternative to Net Income as an indicator of our performance, nor an alternative to Cash Flows from Operating Activities as determined by GAAP as a measure of our capacity to pay distributions.
Depreciation and amortization related to investment properties for purposes of calculating FFO include loss on lease terminations, which encompasses the write-off of tenant-related assets, including tenant improvements and in-place lease values, as a result of early lease terminations. Loss on lease terminations included in depreciation and amortization for FFO excludes the write-off of tenant-related above and below market lease intangibles that are otherwise included in Loss on lease terminations in our condensed consolidated statements of operations.
Operating FFO
Operating FFO is defined as FFO excluding the impact of gains and losses from the early extinguishment of debt and other items as denoted within the calculation that we do not believe are representative of the operating results of our core business platform. We consider Operating FFO a meaningful, additional measure of operating performance primarily because it excludes the effects of transactions and other events which we do not consider representative of the operating results of our core business platform. Operating FFO does not represent an alternative to Net Income as an indicator of our performance, nor an alternative to Cash Flows from Operating Activities as determined by GAAP as a measure of our capacity to pay dividends. Further, comparison of our presentation of Operating FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in definition and application by such REITs.
Net Operating Income (NOI) and Combined NOI
We define Net Operating Income (NOI) as operating revenues (rental income, tenant recovery income, other property income, excluding straight-line rental income, amortization of lease inducements and amortization of acquired above and below market lease intangibles) less property operating expenses (real estate tax expense and property operating expense, excluding straight-line ground rent expense and straight-line bad debt expense). Combined NOI represents NOI plus our pro rata share of NOI from our investment property unconsolidated joint ventures, including discontinued operations associated with those ventures. We believe that NOI and Combined NOI are useful measures of our operating performance. Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. We believe that NOI and Combined NOI provide an operating perspective not immediately apparent from GAAP operating income or net (loss) income. We use NOI and Combined NOI to evaluate our performance on a property-by-property basis because these measures allow management to evaluate the impact that factors such as lease structure, lease rates and tenant base, which vary by property, have on our operating results. However, these measures should only be used as an alternative measure of our financial performance.
Same Store NOI, NOI from Other Investment Properties and NOI from Discontinued Operations
Same Store NOI represents NOI from our same store portfolio consisting of 270 operating properties acquired or place in service prior to January 1, 2011. NOI from Other Investment Properties represents NOI primarily from our one development property, two additional phases of existing properties acquired during the third quarter of 2011, two non-stabilized operating properties and one property that was partially sold to our RioCan joint venture during the third quarter of 2011, which did not qualify for discontinued operations accounting treatment. In addition, we have included University Square, the property for which we have ceased making the monthly debt service payment and for which we have attempted to negotiate with the lender, in Other investment properties due to the uncertainty of the timing of transfer of ownership of this property. Prior to this quarter, we had included University Square in the same store portfolio. NOI consists of the sum of Same Store NOI and NOI from Other Investment Properties. NOI from Discontinued Operations represents NOI associated with properties accounted for as discontinued operations.
Adjusted EBITDA and Combined Adjusted EBITDA
Adjusted EBITDA represents net income (loss) before interest, income taxes, depreciation and amortization, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing performance. Combined Adjusted EBITDA represents Adjusted EBITDA plus our pro rata share of the EBITDA adjustments from our investment property unconsolidated joint ventures, including discontinued operations associated with those ventures. We believe that Adjusted EBITDA and Combined Adjusted EBITDA are useful because they allow investors and management to evaluate and compare our performance from period to period in a meaningful and consistent manner in addition to standard financial measurements under GAAP. Adjusted EBITDA and Combined Adjusted EBITDA are not measurements of financial performance under GAAP and should not be considered as alternatives to net income, as an indicator of operating performance or any measure of performance derived in accordance with GAAP. Our calculations of Adjusted EBITDA and Combined Adjusted EBITDA may be different from the calculation used by other companies and, accordingly, comparability may be limited.
Net Debt to Adjusted EBITDA and Combined Net Debt to Combined Adjusted EBITDA
Net Debt to Adjusted EBITDA represents (i) our total debt less cash and cash equivalents divided by (ii) Adjusted EBITDA for the prior 12 months. Combined Net Debt to Combined Adjusted EBITDA represents (i) the sum of (A) our total debt less cash and cash equivalents plus (B) our pro rata share of our investment property unconsolidated joint ventures total debt less our pro rata share of these joint ventures cash and cash equivalents divided by (ii) Combined Adjusted EBITDA for the prior 12 months. We believe that these ratios are useful because they provide investors with information regarding total debt net of cash and cash equivalents, which could be used to repay debt, compared to our performance as measured using Adjusted EBITDA and Combined Adjusted EBITDA.
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands)
Reconciliation of Net Income (Loss) to NOI
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| ||||||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
Revenues: |
|
|
|
|
|
|
|
|
| ||||
Same store investment properties (270 properties): |
|
|
|
|
|
|
|
|
| ||||
Rental income |
|
$ |
117,116 |
|
$ |
115,726 |
|
$ |
234,863 |
|
$ |
231,025 |
|
Tenant recovery income |
|
25,185 |
|
23,963 |
|
52,899 |
|
51,009 |
| ||||
Other property income |
|
2,588 |
|
2,714 |
|
5,272 |
|
5,409 |
| ||||
Other investment properties: |
|
|
|
|
|
|
|
|
| ||||
Rental income |
|
2,395 |
|
3,787 |
|
4,587 |
|
7,620 |
| ||||
Tenant recovery income |
|
91 |
|
764 |
|
838 |
|
1,656 |
| ||||
Other property income |
|
218 |
|
67 |
|
297 |
|
188 |
| ||||
Expenses: |
|
|
|
|
|
|
|
|
| ||||
Same store investment properties (270 properties): |
|
|
|
|
|
|
|
|
| ||||
Property operating expenses |
|
(22,004) |
|
(22,046) |
|
(45,722) |
|
(47,249) |
| ||||
Real estate taxes |
|
(17,483) |
|
(19,105) |
|
(36,501) |
|
(37,083) |
| ||||
Other investment properties: |
|
|
|
|
|
|
|
|
| ||||
Property operating expenses |
|
(680) |
|
(1,010) |
|
(1,174) |
|
(2,469) |
| ||||
Real estate taxes |
|
(1,858) |
|
(1,018) |
|
(2,818) |
|
(1,896) |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net operating income: |
|
|
|
|
|
|
|
|
| ||||
Same store investment properties |
|
105,402 |
|
101,252 |
|
210,811 |
|
203,111 |
| ||||
Other investment properties |
|
166 |
|
2,590 |
|
1,730 |
|
5,099 |
| ||||
Total net operating income |
|
105,568 |
|
103,842 |
|
212,541 |
|
208,210 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Other income (expense): |
|
|
|
|
|
|
|
|
| ||||
Straight-line rental income, net |
|
228 |
|
(132) |
|
623 |
|
(203) |
| ||||
Amortization of acquired above and below market lease intangibles, net |
|
376 |
|
426 |
|
922 |
|
795 |
| ||||
Amortization of lease inducements |
|
(72) |
|
(15) |
|
(112) |
|
(30) |
| ||||
Straight-line ground rent expense |
|
(910) |
|
(948) |
|
(1,826) |
|
(1,904) |
| ||||
Depreciation and amortization |
|
(58,289) |
|
(58,742) |
|
(116,719) |
|
(117,369) |
| ||||
Provision for impairment of investment properties |
|
(1,323) |
|
- |
|
(1,323) |
|
- |
| ||||
Loss on lease terminations |
|
(1,177) |
|
(3,355) |
|
(4,901) |
|
(6,693) |
| ||||
General and administrative expenses |
|
(6,543) |
|
(5,043) |
|
(11,464) |
|
(11,370) |
| ||||
Dividend income |
|
615 |
|
522 |
|
1,480 |
|
1,198 |
| ||||
Interest income |
|
19 |
|
170 |
|
40 |
|
350 |
| ||||
Gain on extinguishment of debt |
|
- |
|
3,715 |
|
3,879 |
|
14,438 |
| ||||
Equity in loss of unconsolidated joint ventures, net |
|
(1,286) |
|
(1,981) |
|
(3,604) |
|
(4,159) |
| ||||
Interest expense |
|
(40,537) |
|
(55,644) |
|
(95,263) |
|
(116,257) |
| ||||
Co-venture obligation expense |
|
(397) |
|
(1,792) |
|
(3,300) |
|
(3,584) |
| ||||
Recognized gain on marketable securities |
|
7,265 |
|
277 |
|
7,265 |
|
277 |
| ||||
Other income (expense), net |
|
2,479 |
|
171 |
|
(1,067) |
|
753 |
| ||||
Total other expense |
|
(99,552) |
|
(122,371) |
|
(225,370) |
|
(243,758) |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income (loss) from continuing operations |
|
6,016 |
|
(18,529) |
|
(12,829) |
|
(35,548) |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Discontinued operations: |
|
|
|
|
|
|
|
|
| ||||
Income (loss), net |
|
490 |
|
1,709 |
|
1,453 |
|
(27,408) |
| ||||
Gain on sales of investment properties, net |
|
6,847 |
|
702 |
|
7,762 |
|
4,161 |
| ||||
Income (loss) from discontinued operations |
|
7,337 |
|
2,411 |
|
9,215 |
|
(23,247) |
| ||||
Gain on sales of investment properties |
|
4,323 |
|
2,402 |
|
5,002 |
|
5,062 |
| ||||
Net income (loss) |
|
17,676 |
|
(13,716) |
|
1,388 |
|
(53,733) |
| ||||
Net income attributable to noncontrolling interests |
|
- |
|
(8) |
|
- |
|
(16) |
| ||||
Net income (loss) attributable to Company shareholders |
|
$ |
17,676 |
|
$ |
(13,724) |
|
$ |
1,388 |
|
$ |
(53,749) |
|
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands)
Reconciliation of Net Loss to Adjusted EBITDA and Combined Adjusted EBITDA
|
|
|
|
Twelve Months Ended |
|
|
| ||||
|
|
|
|
June 30, 2012 |
|
December 31, 2011 |
|
|
| ||
Net loss |
|
|
|
$ |
(17,457) |
|
$ |
(72,578) |
|
|
|
Interest expense |
|
|
|
209,985 |
|
232,360 |
|
|
| ||
Interest expense (discontinued operations) |
|
|
|
958 |
|
530 |
|
|
| ||
Depreciation and amortization |
|
|
|
233,755 |
|
235,435 |
|
|
| ||
Depreciation and amortization (discontinued operations) |
|
|
|
1,215 |
|
2,585 |
|
|
| ||
Gain on sales of investment properties |
|
|
|
(5,846) |
|
(5,906) |
|
|
| ||
Gain on sales of investment properties, net (discontinued operations) |
|
|
|
(28,110) |
|
(24,509) |
|
|
| ||
Gain on extinguishment of debt, net |
|
|
|
(6,146) |
|
(16,705) |
|
|
| ||
Loss on lease terminations (a) |
|
|
|
7,621 |
|
9,704 |
|
|
| ||
Loss on lease terminations (a) (discontinued operations) |
|
|
|
- |
|
26 |
|
|
| ||
Provision for impairment of investment properties |
|
|
|
8,973 |
|
38,023 |
|
|
| ||
Provision for impairment of investment properties (discontinued operations) |
|
1,958 |
|
1,958 |
|
|
| ||||
Recognized gain on marketable securities |
|
|
|
(7,265) |
|
(277) |
|
|
| ||
Adjusted EBITDA |
|
|
|
$ |
399,641 |
|
$ |
400,646 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Pro rata share of adjustments from investment property unconsolidated joint ventures (b): |
|
|
|
|
|
|
| ||||
Interest expense |
|
|
|
3,863 |
|
3,310 |
|
|
| ||
Depreciation and amortization |
|
|
|
9,607 |
|
7,080 |
|
|
| ||
Loss on sales of investment properties |
|
|
|
28 |
|
28 |
|
|
| ||
Loss on lease terminations (a) |
|
|
|
561 |
|
387 |
|
|
| ||
Provision for impairment of investment properties |
|
|
|
1,292 |
|
3,959 |
|
|
| ||
Amortization of basis (not pro rata) |
|
|
|
156 |
|
204 |
|
|
| ||
Combined Adjusted EBITDA (c) |
|
|
|
$ |
415,148 |
|
$ |
415,614 |
|
|
|
Reconciliation of NOI to Combined NOI
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| ||||||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total net loss from investment property unconsolidated joint ventures |
|
$ |
(3,608) |
|
$ |
(3,141) |
|
$ |
(7,967) |
|
$ |
(7,549) |
|
Adjustments: |
|
|
|
|
|
|
|
|
| ||||
Straight-line rental income |
|
(259) |
|
(145) |
|
(661) |
|
(326) |
| ||||
Amortization of acquired above and below market lease intangibles, net |
|
58 |
|
80 |
|
135 |
|
134 |
| ||||
Interest income |
|
(2) |
|
(3) |
|
(3) |
|
(5) |
| ||||
Straight-line bad debt expense |
|
7 |
|
(17) |
|
- |
|
154 |
| ||||
Depreciation and amortization |
|
12,662 |
|
6,347 |
|
25,495 |
|
12,754 |
| ||||
Provision for impairment of investment properties |
|
65 |
|
1,590 |
|
1,522 |
|
4,067 |
| ||||
Loss on lease terminations |
|
168 |
|
136 |
|
1,022 |
|
136 |
| ||||
General and administrative expenses |
|
221 |
|
196 |
|
758 |
|
391 |
| ||||
Interest expense |
|
5,169 |
|
3,827 |
|
10,611 |
|
7,555 |
| ||||
Gain on sales of investment properties |
|
- |
|
- |
|
(2,444) |
|
- |
| ||||
Other income, net |
|
(148) |
|
- |
|
(121) |
|
- |
| ||||
Total NOI from investment property unconsolidated joint ventures |
|
$ |
14,333 |
|
$ |
8,870 |
|
$ |
28,347 |
|
$ |
17,311 |
|
|
|
|
|
|
|
|
|
|
| ||||
Pro rata share of NOI from investment property unconsolidated joint ventures (b) |
|
$ |
3,365 |
|
$ |
2,163 |
|
$ |
6,654 |
|
$ |
4,233 |
|
Total NOI |
|
105,568 |
|
103,842 |
|
212,541 |
|
208,210 |
| ||||
Combined NOI (c) |
|
$ |
108,933 |
|
$ |
106,005 |
|
$ |
219,195 |
|
$ |
212,443 |
|
(a) Loss on lease terminations in the reconciliation above excludes the write-off of tenant-related above and below market lease intangibles that are otherwise included in Loss on lease terminations in the condensed consolidated statements of operations.
(b) Amounts shown net of intercompany eliminations.
(c) Combined data and ratios include our pro rata share of unconsolidated joint ventures in addition to our wholly-owned and consolidated portfolio.
2nd Quarter 2012 Supplemental Information |
|
Retail Properties of America, Inc.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands)
Reconciliation of Operating Income (Loss) from Discontinued Operations to NOI from Discontinued Operations
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| ||||||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
Revenues: |
|
|
|
|
|
|
|
|
| ||||
Rental income |
|
$ |
466 |
|
$ |
2,978 |
|
$ |
1,791 |
|
$ |
7,009 |
|
Tenant recovery income |
|
(40) |
|
177 |
|
(40) |
|
732 |
| ||||
Other property income |
|
19 |
|
8 |
|
26 |
|
37 |
| ||||
Expenses: |
|
|
|
|
|
|
|
|
| ||||
Property operating expenses |
|
45 |
|
(320) |
|
86 |
|
(486) |
| ||||
Real estate taxes |
|
- |
|
(182) |
|
21 |
|
(589) |
| ||||
Net operating income from discontinued operations |
|
490 |
|
2,661 |
|
1,884 |
|
6,703 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Other income (expense): |
|
|
|
|
|
|
|
|
| ||||
Straight-line rental income |
|
- |
|
66 |
|
39 |
|
98 |
| ||||
Amortization of acquired above and below market lease intangibles, net |
|
- |
|
5 |
|
- |
|
10 |
| ||||
Amortization of lease inducements |
|
- |
|
(18) |
|
- |
|
(18) |
| ||||
Straight-line bad debt expense |
|
- |
|
31 |
|
- |
|
32 |
| ||||
Depreciation and amortization |
|
- |
|
(943) |
|
(191) |
|
(2,591) |
| ||||
Provision for impairment of investment properties |
|
- |
|
- |
|
- |
|
(30,373) |
| ||||
Loss on lease terminations |
|
- |
|
(2) |
|
- |
|
(2) |
| ||||
General and administrative expenses |
|
- |
|
(34) |
|
- |
|
(35) |
| ||||
Interest expense |
|
- |
|
(57) |
|
(279) |
|
(1,232) |
| ||||
Total other expense |
|
- |
|
(952) |
|
(431) |
|
(34,111) |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating income (loss) from discontinued operations |
|
$ |
490 |
|
$ |
1,709 |
|
$ |
1,453 |
|
$ |
(27,408) |
|
2nd Quarter 2012 Supplemental Information |
|
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