EX-99.2 3 ex-992.htm EX-99.2 EX-99.2

Exhibit 99.2






RETAIL PROPERTIES OF AMERICA, INC. REPORTS
THIRD QUARTER RESULTS
Oak Brook, IL – November 4, 2013 – Retail Properties of America, Inc. (NYSE: RPAI or the “Company”) today reported financial and operating results for the quarter and nine months ended September 30, 2013.
FINANCIAL RESULTS
For the quarter ended September 30, 2013, the Company reported:
▪
Operating Funds From Operations (Operating FFO) of $63.3 million, or $0.27 per share, compared to $50.5 million, or $0.22 per share, for the same period in 2012;
▪
Funds From Operations (FFO) of $63.4 million, or $0.27 per share, compared to $57.2 million, or $0.25 per share, for the same period in 2012;
▪
Net loss attributable to common shareholders of $(39.9) million, or $(0.17) per share, compared to $(16.0) million, or $(0.07) per share, for the same period in 2012.
For the nine months ended September 30, 2013, the Company reported:
▪
Operating FFO of $176.1 million, or $0.75 per share, compared to $151.4 million, or $0.70 per share, for the same period in 2012;
▪
FFO of $194.8 million, or $0.83 per share, compared to $175.8 million, or $0.81 per share, for the same period in 2012;
▪
Net loss attributable to common shareholders of $(30.5) million, or $(0.13) per share, compared to $(14.6) million, or $(0.07) per share, for the same period in 2012.
OPERATING RESULTS
For the quarter ended September 30, 2013, the Company’s results for its consolidated portfolio were as follows:
▪
3.3% increase in total same store net operating income (NOI), excluding termination fees, over the comparable period in 2012, based on same store occupancy of 93.1% at September 30, 2013, up 90 basis points from 92.2% at June 30, 2013 and up 250 basis points from 90.6% at September 30, 2012;
▪
Total portfolio percent leased, including leases signed but not commenced: 94.0% at September 30, 2013, up 60 basis points from 93.4% at June 30, 2013 and up 220 basis points from 91.8% at September 30, 2012;
▪
Retail portfolio percent leased, including leases signed but not commenced: 93.6% at September 30, 2013, up 60 basis points from 93.0% at June 30, 2013 and up 250 basis points from 91.1% at September 30, 2012;
▪
1,660,000 square feet of retail leasing transactions, including the Company’s pro rata share of unconsolidated joint ventures, comprised of 235 new and renewal leases; and,
▪
Positive comparable cash leasing spreads, including the Company’s pro rata share of unconsolidated joint ventures, of 3.6%.
“We are pleased to share another quarter of strong operational and financial results as we continue to make measurable progress towards accomplishing our strategic goals,” stated Steve Grimes, president and chief executive officer.

n Retail Properties of America, Inc.
T: 800.541.7661
www.rpai.com    2021 Spring Road, Suite 200
Oak Brook, IL 60523

INVESTMENT ACTIVITY
Joint Venture Dissolution
On October 1, 2013, the Company acquired RioCan Real Estate Investment Trust’s (“RioCan”) 80% ownership interest in five properties. The properties have a value, net of mark-to-market adjustment on financing, of $124.8 million, with RioCan’s 80% interest valued at $99.9 million. The Company assumed the joint venture’s $67.9 million of in-place mortgage financing on those properties at a weighted average interest rate of 4.8%. Also, the Company sold to RioCan its 20% ownership interest in eight properties. The properties have a value, net of mark-to-market adjustment on financing, of $477.5 million, with the Company’s 20% interest valued at $95.5 million. RioCan assumed the joint venture’s $209.2 million of in-place mortgage financing on those properties at a weighted average interest rate of 3.7%.
Acquisitions
Subsequent to quarter end, the Company announced it had entered into an agreement to acquire two assets in the New York City market, Pelham Manor Shopping Plaza (“Pelham”) and Fordham Place (“Fordham”), for a gross purchase price of $192.4 million. These acquisitions are expected to close during the fourth quarter of 2013, subject to satisfaction of customary closing conditions, including third party consents. These acquisitions will increase the Company’s footprint in the New York City market by approximately 500,000 square feet. Year-to-date, closed or announced acquisitions total $292.3 million, including the purchase of RioCan’s 80% interest in five properties for $99.9 million.
“The New York City acquisitions meet our long term investment objectives, with strong in-place demographics and high barriers to entry,” stated Shane Garrison, executive vice president, chief operating officer and chief investment officer. “We will continue to be very selective and disciplined with our investment approach, and look forward to additional high quality acquisition opportunities in our identified target markets as we continue to position the Company for long term growth.”
Dispositions
During the quarter, non-strategic and non-core asset sales totaled $29.0 million. Subsequent to quarter end, the Company sold four non-strategic assets for $53.1 million, in addition to the sale of the Company’s 20% interest in eight properties to RioCan for $95.5 million. Year-to-date, assets sales and earnouts have totaled $230.2 million, including the RioCan transaction. Also, the Company has entered into agreements to sell $65.6 million of additional non-strategic assets, which are expected to close primarily in the fourth quarter.
BALANCE SHEET AND CAPITAL MARKETS ACTIVITY
As of September 30, 2013, the Company had $2.3 billion of consolidated indebtedness, which resulted in a net debt to adjusted EBITDA ratio of 5.9x, or a net debt and preferred stock to adjusted EBITDA ratio of 6.2x, down from 7.3x as of September 30, 2012. Consolidated indebtedness, as of September 30, 2013, had a weighted average contractual interest rate of 4.99% and a weighted average maturity of 4.7 years.
During the quarter, the Company repaid $185.5 million of mortgage loans, excluding amortization, with a weighted average contractual interest rate of 6.40%. Subsequent to quarter end, the Company repaid an additional $24.1 million mortgage loan with an interest rate of 6.39%. Year-to-date, the Company has repaid or received forgiveness for $495.0 million of mortgage and mezzanine loans, excluding amortization, with a weighted average contractual interest rate of 7.95%.

ii

Class B-3 Common Stock Conversion
On October 5, 2013, each share of Class B-3 common stock automatically converted into one share of Class A common stock. As a result, all shares of the Company’s common stock are now tradable.
GUIDANCE
The Company has updated its 2013 guidance, as detailed below:
 
 
Previous Guidance
 
Updated Guidance
Operating FFO per share:
 
$0.92 - $0.96
 
$1.00 - $1.02
FFO per share:
 
$0.98 - $1.02
 
$1.08 - $1.10
Net income attributable to common shareholders per share:
 
$0.15 - $0.19
 
$0.22 - $0.24
Same-store NOI growth:
 
2.0% - 2.5%
 
2.0% - 2.5%
Disposition Activity:
 
$400.0 - $500.0 million
 
$400.0 - $500.0 million
Acquisition Activity:
 
$100.0 - $200.0 million
 
$292.3 - $325.0 million
DIVIDEND
On October 29, 2013, the Company’s Board of Directors declared the fourth quarter 2013 Series A preferred stock distribution of $0.4375 per preferred share, for the period beginning October 1, 2013, which will be paid on December 31, 2013, to preferred shareholders of record on December 19, 2013.
On October 29, 2013, the Company’s Board of Directors also declared the fourth quarter 2013 quarterly cash dividend of $0.165625 per share on the Company’s outstanding Class A common stock. The common dividend will be paid on January 10, 2014, to Class A common shareholders of record on December 31, 2013.
WEBCAST AND SUPPLEMENTAL INFORMATION
The Company’s management team will hold a webcast, on Tuesday, November 5, 2013 at 11:00 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.
A live webcast will be available online on the Company’s website at www.rpai.com in the Investor Relations section. The conference call can be accessed by dialing (877) 705-6003 or (201) 493-6725 for international participants. Please dial in at least ten minutes prior to the start of the call to register.
A replay of the webcast will be available. To listen to the replay, please go to www.rpai.com in the Investor Relations section of the website and follow the instructions. A replay of the call will be available from 2:00 PM EST on November 5, 2013, until midnight EST on November 19, 2013. The replay can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers, and entering pin number 10000246.
The Company has also posted supplemental financial and operating information and other data in the Investor Relations section of its website.

iii

ABOUT RPAI
Retail Properties of America, Inc. is a fully integrated, self-administered and self-managed real estate investment trust that owns and operates high quality, strategically located shopping centers across 34 states. The Company is one of the largest owners and operators of shopping centers in the United States. The Company is publicly traded on the New York Stock Exchange under the ticker symbol RPAI. Additional information about the Company is available at www.rpai.com.
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 Company’s 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 Company’s industry and changes in the real estate markets in particular, market demand for and pricing of the Company’s common and preferred 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 Company’s 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, satisfaction of closing conditions to the pending transactions described herein, the Company’s failure to successfully execute its non-core disposition program and capital recycling efforts, the Company’s ability to create long-term shareholder value, the Company’s 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 Company’s most recent Forms 10-K and 10-Q 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 income (loss) computed in accordance with generally accepted accounting principles (GAAP), excluding gains (or losses) from sales of depreciable investment properties, plus depreciation and amortization and impairment charges on depreciable investment properties, including amounts from continuing and discontinued operations, as well as 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 REITs. The Company believes that, subject to the following limitations, FFO provides a basis for comparing the Company’s performance and operations to those of other REITs. Depreciation and amortization related to investment properties for purposes of calculating FFO includes a portion of loss on lease terminations encompassing the write-off of tenant-related assets, including tenant improvements and in-place lease values, as a result of early lease terminations.
The Company also reports Operating FFO, which is defined as FFO excluding the impact to earnings from the early extinguishment of debt and other items as denoted within the calculation. 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 Company’s core business platform. Neither FFO nor Operating FFO represent alternatives to “Net Income” as an indicator of the Company’s performance, and “Cash Flows from Operating Activities” as determined by GAAP as a measure of the Company’s capacity to fund cash needs, including the payment of dividends. Further, comparison of the Company’s 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.

iv

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, amortization of acquired above and below market lease intangibles and lease termination fee income) less property operating expenses (real estate tax expense and property operating expense, excluding straight-line ground rent expense, straight-line bad debt expense and lease termination fee expense). Same Store NOI for the quarter represents NOI from our same store portfolio consisting of 233 operating properties acquired or placed in service prior to July 1, 2012, excluding the five operating properties that were classified as held for sale as of September 30, 2013, which are accounted for within discontinued operations. NOI from Other Investment Properties represents NOI primarily from our development properties, and University Square due to the continued exploration of strategic alternatives for this property. NOI consists of the sum of Same Store NOI and NOI from Other Investment Properties. We believe that NOI, Same Store NOI, and NOI from Other Investment Properties are useful measures of our operating performance. Other REITs may use different methodologies for calculating these metrics, and accordingly, our NOI metrics may not be comparable to other REITs. We believe that these metrics provide an operating perspective not immediately apparent from GAAP operating income or net income (loss) attributable to common shareholders. We use these metrics 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.
Adjusted EBITDA represents net income (loss) attributable to common shareholders 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. We believe that Adjusted EBITDA is useful because it allows 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 is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income (loss) attributable to common shareholders, as an indicator of operating performance or any measure of performance derived in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, accordingly, comparability may be limited.
Net Debt to Adjusted EBITDA represents (i) our total debt less cash and cash equivalents divided by (ii) Adjusted EBITDA for the prior three months, annualized. We believe that this ratio is useful because it provides 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.
Net Debt and Preferred Stock to Adjusted EBITDA represents (i) our total debt, plus preferred stock, less cash and cash equivalents divided by (ii) Adjusted EBITDA for the prior three months, annualized. We believe that this ratio is useful because it provides investors with information regarding total debt and preferred stock, net of cash and cash equivalents, which could be used to repay debt, compared to our performance as measured using Adjusted EBITDA.
CONTACT INFORMATION
Michael Fitzmaurice, VP - Finance
Retail Properties of America, Inc.
630.634.4233

v


Retail Properties of America, Inc.
FFO and Operating FFO Guidance (a)
 
 
 
 
Per Share Guidance Range
Full Year 2013
 
 
Low
 
High
 
 
 
 
 
Net income attributable to common shareholders
 
$
0.22

 
$
0.24

Depreciation and amortization
 
0.99

 
0.99

Provision for impairment of investment properties
 
0.25

 
0.25

Gain on sales/acquisitions of investment properties
 
(0.38
)
 
(0.38
)
FFO
 
$
1.08

 
$
1.10

 
 
 
 
 
Impact on earnings from the early extinguishment of debt, net
 
(0.07
)
 
(0.07
)
Joint venture investment impairment
 
0.01

 
0.01

Provision for hedge ineffectiveness
 
—

 
—

Other
 
(0.02
)
 
(0.02
)
Operating FFO
 
$
1.00

 
$
1.02



(a)Includes amounts from discontinued operations and our pro rata share from our unconsolidated joint ventures.

vi


Retail Properties of America, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands, except par value amounts)
(unaudited)
 

 
 
September 30, 2013
 
December 31, 2012
Assets
 
 

 
 

Investment properties:
 
 

 
 

Land
 
$
1,170,239

 
$
1,209,523

Building and other improvements
 
4,547,462

 
4,703,859

Developments in progress
 
49,752

 
49,496

 
 
5,767,453

 
5,962,878

Less accumulated depreciation
 
(1,350,373
)
 
(1,275,787
)
Net investment properties
 
4,417,080

 
4,687,091

 
 
 
 
 
Cash and cash equivalents
 
70,321

 
138,069

Investment in unconsolidated joint ventures
 
55,732

 
56,872

Accounts and notes receivable (net of allowances of $8,376 and $6,452, respectively)
 
77,732

 
85,431

Acquired lease intangible assets, net
 
96,300

 
125,706

Assets associated with investment properties held for sale
 
59,248

 
8,922

Other assets, net
 
130,191

 
135,336

Total assets
 
$
4,906,604

 
$
5,237,427

 
 
 
 
 
Liabilities and Equity
 
 

 
 

Liabilities:
 
 

 
 

Mortgages and notes payable, net (includes unamortized discount
of $(1,109) and $(1,492), respectively)
 
$
1,707,425

 
$
2,212,089

Unsecured term loan
 
450,000

 
300,000

Unsecured revolving line of credit
 
165,000

 
80,000

Accounts payable and accrued expenses
 
65,285

 
73,983

Distributions payable
 
39,130

 
38,200

Acquired lease intangible liabilities, net
 
68,782

 
74,648

Liabilities associated with investment properties held for sale
 
22,934

 
60

Other liabilities
 
75,241

 
82,694

Total liabilities
 
2,593,797

 
2,861,674

 
 
 
 
 
Commitments and contingencies
 
 

 
 

 
 
 
 
 
Equity:
 
 

 
 

Preferred stock, $0.001 par value, 10,000 shares authorized
 
 

 
 

7.00% Series A cumulative redeemable preferred stock,
5,400 shares issued and outstanding at September 30, 2013 and December 31, 2012;
liquidation preference $135,000
 
5

 
5

Class A common stock, $0.001 par value, 475,000 shares authorized,
187,740 and 133,606 shares issued and outstanding at September 30, 2013
and December 31, 2012, respectively
 
187

 
133

Class B-2 common stock, $0.001 par value, 55,000 shares authorized,
0 and 48,518 shares issued and outstanding at September 30, 2013
and December 31, 2012, respectively
 
—

 
49

Class B-3 common stock, $0.001 par value, 55,000 shares authorized,
48,519 shares issued and outstanding at September 30, 2013 and December 31, 2012
 
49

 
49

Additional paid-in capital
 
4,919,312

 
4,835,370

Accumulated distributions in excess of earnings
 
(2,607,382
)
 
(2,460,093
)
Accumulated other comprehensive loss
 
(858
)
 
(1,254
)
Total shareholders' equity
 
2,311,313

 
2,374,259

Noncontrolling interests
 
1,494

 
1,494

Total equity
 
2,312,807

 
2,375,753

Total liabilities and equity
 
$
4,906,604

 
$
5,237,427



3rd Quarter 2013 Supplemental Information
 
1


Retail Properties of America, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per share amounts)
(unaudited)
 

 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2013
 
2012
 
2013
 
2012
Revenues:
 
 

 
 

 
 

 
 

Rental income
 
$
112,393

 
$
110,848

 
$
334,936

 
$
331,475

Tenant recovery income
 
27,807

 
26,043

 
77,408

 
77,749

Other property income
 
2,091

 
1,959

 
7,090

 
7,504

Total revenues
 
142,291

 
138,850

 
419,434

 
416,728

 
 
 
 
 
 
 
 
 
Expenses:
 
 

 
 

 
 

 
 

Property operating expenses
 
22,027

 
22,770

 
68,630

 
69,736

Real estate taxes
 
20,304

 
19,078

 
56,799

 
56,413

Depreciation and amortization
 
53,254

 
53,052

 
168,857

 
159,662

Provision for impairment of investment properties
 
47,784

 
—

 
54,478

 
1,323

Loss on lease terminations
 
221

 
1,689

 
813

 
6,328

General and administrative expenses
 
6,820

 
7,227

 
23,163

 
18,691

Total expenses
 
150,410

 
103,816

 
372,740

 
312,153

 
 
 
 
 
 
 
 
 
Operating (loss) income
 
(8,119
)
 
35,034

 
46,694

 
104,575

 
 
 
 
 
 
 
 
 
Gain on extinguishment of debt
 
—

 
—

 
26,331

 
3,879

Equity in income (loss) of unconsolidated joint ventures, net
 
126

 
(1,863
)
 
(736
)
 
(5,467
)
Interest expense
 
(32,381
)
 
(46,244
)
 
(114,449
)
 
(133,001
)
Co-venture obligation expense
 
—

 
—

 
—

 
(3,300
)
Recognized gain on marketable securities
 
—

 
9,108

 
—

 
16,373

Other income, net
 
985

 
1,047

 
4,146

 
1,500

Loss from continuing operations
 
(39,389
)
 
(2,918
)
 
(38,014
)
 
(15,441
)
 
 
 
 
 
 
 
 
 
Discontinued operations:
 
 

 
 

 
 

 
 

(Loss) income, net
 
(1,018
)
 
(23,440
)
 
2,111

 
(22,293
)
Gain on sales of investment properties
 
1,705

 
8,756

 
3,640

 
16,518

Income (loss) from discontinued operations
 
687

 
(14,684
)
 
5,751

 
(5,775
)
Gain on sales of investment properties
 
1,150

 
1,650

 
8,802

 
6,652

Net loss
 
(37,552
)
 
(15,952
)
 
(23,461
)
 
(14,564
)
Net loss attributable to the Company
 
(37,552
)
 
(15,952
)
 
(23,461
)
 
(14,564
)
Preferred stock dividends
 
(2,362
)
 
—

 
(7,087
)
 
—

Net loss attributable to common shareholders
 
$
(39,914
)
 
$
(15,952
)
 
$
(30,548
)
 
$
(14,564
)
 
 
 
 
 
 
 
 
 
(Loss) earnings per common share - basic and diluted
 
 

 
 

 
 

 
 

Continuing operations
 
$
(0.17
)
 
$
(0.01
)
 
$
(0.16
)
 
$
(0.04
)
Discontinued operations
 
—

 
(0.06
)
 
0.03

 
(0.03
)
Net loss per common share attributable to common shareholders
 
$
(0.17
)
 
$
(0.07
)
 
$
(0.13
)
 
$
(0.07
)
 
 
 
 
 
 
 
 
 
Weighted average number of common shares outstanding - basic and diluted
 
236,151

 
230,597

 
233,462

 
217,087



3rd Quarter 2013 Supplemental Information
 
2



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 and Operating FFO (a) (b)
 
 
 
 
 
 
 
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Net loss attributable to common shareholders
 
$
(39,914
)
 
$
(15,952
)
 
$
(30,548
)
 
$
(14,564
)
Depreciation and amortization
 
56,236

 
61,219

 
179,362

 
188,600

Provision for impairment of investment properties
 
49,964

 
22,377

 
59,426

 
24,930

Gain on sales of investment properties
 
(2,855
)
 
(10,406
)
 
(13,419
)
 
(23,170
)
FFO
 
$
63,431

 
$
57,238

 
$
194,821

 
$
175,796

 
 
 
 
 
 
 
 
 
FFO per common share outstanding
 
$
0.27

 
$
0.25

 
$
0.83

 
$
0.81

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FFO
 
$
63,431

 
$
57,238

 
$
194,821

 
$
175,796

Impact on earnings from the early extinguishment of debt, net
 
367

 
2,249

 
(18,783
)
 
(11,500
)
Recognized gain on marketable securities
 
—

 
(9,108
)
 
—

 
(16,373
)
Joint venture investment impairment
 
—

 
—

 
1,834

 
—

Excise tax accrual
 
—

 
—

 
—

 
4,594

Provision for hedge ineffectiveness
 
41

 
157

 
(891
)
 
467

Other
 
(567
)
 
—

 
(917
)
 
(1,627
)
Operating FFO
 
$
63,272

 
$
50,536

 
$
176,064

 
$
151,357

 
 
 
 
 
 
 
 
 
Operating FFO per common share outstanding
 
$
0.27

 
$
0.22

 
$
0.75

 
$
0.70

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of common shares outstanding
 
236,151

 
230,597

 
233,462

 
217,087

 
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.165625

 
$
0.165625

 
$
0.496875

 
$
0.496875

 
 
 
 
 
 
 
 
 
Additional Information (b)
 
 

 
 

 
 

 
 

Operating property maintenance capital expenditures (c)
 
$
4,512

 
$
2,967

 
$
9,878

 
$
7,231

Operating property lease-related expenditures (d)
 
$
8,604

 
$
37,803

 
$
30,942

 
$
57,183

Straight-line rental income, net
 
$
(92
)
 
$
485

 
$
(942
)
 
$
1,168

Amortization of above and below market lease intangibles
and lease inducements (e)
 
$
184

 
$
(1,015
)
 
$
685

 
$
(243
)
Straight-line ground rent expense
 
$
874

 
$
1,036

 
$
2,675

 
$
2,862



(a)
Refer to page 20 for definitions of FFO and Operating FFO.
(b)
Includes amounts from discontinued operations and our pro rata share from our unconsolidated joint ventures.
(c)
Consists of payments for building, site and other improvements.
(d)
Consists of payments for tenant improvements, lease commissions and lease inducements.
(e)
Amortization of above and below market lease intangibles and lease inducements in the table above includes the write-off of tenant-related above and below market lease intangibles and lease inducements that are presented within "Loss on lease terminations". For the three months ended September 30, 2013 and 2012, the balances were $76 and $(748), respectively. For the nine months ended September 30, 2013 and 2012, the balances were $327 and $(758), respectively.

3rd Quarter 2013 Supplemental Information
 
3


Retail Properties of America, Inc.
Supplemental Financial Statement Detail
(amounts in thousands)
(unaudited)


 
Supplemental Balance Sheet Detail
 
September 30, 2013
 
December 31, 2012
Accounts and Notes Receivable
 
 

 
 

Accounts receivable (net of allowances of $6,233 and $5,514, respectively)
 
$
26,259

 
$
32,143

Straight-line receivables (net of allowances of $1,843 and $638, respectively)
 
51,473

 
53,288

Notes receivable (net of allowances of $300)
 
—

 
—

Total
 
$
77,732

 
$
85,431

 
 
 
 
 
Other Assets, net
 
 

 
 

Deferred costs, net
 
$
51,924

 
$
50,550

Restricted cash and escrows
 
53,768

 
63,539

Other assets, net
 
24,499

 
21,247

Total
 
$
130,191

 
$
135,336

 
 
 
 
 
Other Liabilities
 
 

 
 

Unearned income
 
$
20,641

 
$
25,791

Straight-line ground rent liability
 
35,266

 
32,591

Fair value of derivatives
 
1,022

 
2,783

Other liabilities
 
18,312

 
21,529

Total
 
$
75,241

 
$
82,694

 
 
 
 
 
Developments in Progress
 
 

 
 

Active developments
 
$
3,907

 
$
3,154

Property available for future development
 
45,845

 
46,342

Total
 
$
49,752

 
$
49,496


 
Supplemental Statements of Operations Detail
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2013
 
2012
 
2013
 
2012
Rental Income
 
 

 
 

 
 

 
 

Base rent
 
$
110,849

 
$
108,671

 
$
331,149

 
$
324,820

Percentage and specialty rent
 
1,562

 
1,515

 
4,481

 
4,736

Straight-line rent
 
(142
)
 
421

 
(1,112
)
 
862

Amortization of above and below market lease intangibles and lease inducements
 
124

 
241

 
418

 
1,057

Total
 
$
112,393

 
$
110,848

 
$
334,936

 
$
331,475

 
 
 
 
 
 
 
 
 
Other Property Income
 
 

 
 

 
 

 
 

Lease termination income
 
$
187

 
$
113

 
$
1,512

 
$
1,640

Other property income
 
1,904

 
1,846

 
5,578

 
5,864

Total
 
$
2,091

 
$
1,959

 
$
7,090

 
$
7,504

 
 
 
 
 
 
 
 
 
Loss on Lease Terminations
 
 

 
 

 
 

 
 

Write-off of tenant-related tenant improvements and in-place lease intangibles
 
$
294

 
$
971

 
$
1,124

 
$
5,706

Write-off of tenant-related above and below market lease intangibles
and lease inducements
 
(73
)
 
718

 
(311
)
 
622

Total
 
$
221

 
$
1,689

 
$
813

 
$
6,328

 
 
 
 
 
 
 
 
 
Bad Debt Expense
 
$
222

 
$
(165
)
 
$
1,387

 
$
255

 
 
 
 
 
 
 
 
 
Straight-line Ground Rent Expense
 
$
874

 
$
1,036

 
$
2,675

 
$
2,862

 
 
 
 
 
 
 
 
 
Management Fee Income from Joint Ventures (a)
 
$
727

 
$
700

 
$
2,271

 
$
2,179

 
 
 
 
 
 
 
 
 
Capitalized Interest
 
$
—

 
$
—

 
$
—

 
$
—



(a)
Amounts are included in "Other income, net" in the condensed consolidated statements of operations.

3rd Quarter 2013 Supplemental Information
 
4


Retail Properties of America, Inc.
Net Operating Income (NOI)
(amounts in thousands)


 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2013
 
2012
 
Change
 
2013
 
2012
 
Change
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of properties in same store portfolio
 
233

 
233

 
—

 
232

 
232

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Same store occupancy
 
93.1%

 
90.6%

 
2.5%

 
93.2%

 
90.8%

 
2.4%

 
 
 
 
 
 
 
 
 
 
 
 
 
Same store percent leased (a)
 
94.5%

 
92.7%

 
1.8%

 
94.6%

 
92.8%

 
1.8%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same store NOI (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2013
 
2012
 
Change
 
2013
 
2012
 
Change
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating revenues
 
 
 
 
 
 
 
 
 
 
 
 
Rental income
 
$
111,766

 
$
109,436

 
 
 
$
331,292

 
$
325,332

 
 
Tenant recovery income
 
27,607

 
25,844

 
 
 
76,509

 
77,085

 
 
Other property income
 
1,857

 
1,793

 
 
 
5,418

 
5,667

 
 
 
 
141,230

 
137,073

 
 
 
413,219

 
408,084

 
 
Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
Property operating expenses
 
20,548

 
21,345

 
 
 
62,791

 
64,643

 
 
Bad debt expense
 
287

 
(190
)
 
 
 
1,343

 
632

 
 
Real estate taxes
 
19,489

 
18,199

 
 
 
54,138

 
53,047

 
 
 
 
40,324

 
39,354

 
 
 
118,272

 
118,322

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same store NOI
 
$
100,906

 
$
97,719

 
3.3%

 
$
294,947

 
$
289,762

 
1.8%

(Net operating loss (NOL)) NOI from Other
Investment Properties (b) (c)
 
$
(241
)
 
$
(456
)
 
 
 
$
1,100

 
$
120

 
 
Total NOI (b)
 
$
100,665

 
$
97,263

 
3.5%

 
$
296,047

 
$
289,882

 
2.1%

 
 
 
 
 
 
 
 
 
 
 
 
 
Combined NOI (b) (d)
 
$
103,852

 
$
100,368

 
 
 
$
305,751

 
$
299,204

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Combined NOI from Discontinued Operations (b) (d)
 
$
1,287

 
$
8,828

 
 
 
$
4,585

 
$
29,614

 
 


(a)
Includes leases signed but not commenced.
(b)
NOI is defined as operating revenues (rental income, tenant recovery income, other property income, excluding straight-line rental income, amortization of lease inducements, amortization of acquired above and below market lease intangibles and lease termination fee income) less property operating expenses (real estate tax expense and property operating expense, excluding straight-line ground rent expense, straight-line bad debt expense and lease termination fee expense). Refer to pages 20 - 24 for definitions and reconciliations of non-GAAP financial measures.
(c)
NOL from Other Investment Properties includes NOL of $(321) and $(572) for the three months ended September 30, 2013 and 2012, respectively, from University Square. NOI from Other Investment Properties includes NOL of $(1,323) and $(2,412) for the nine months ended September 30, 2013 and 2012, respectively, from University Square.
(d)
Combined data includes our pro rata share of unconsolidated joint ventures in addition to our wholly-owned and consolidated portfolio.

3rd Quarter 2013 Supplemental Information
 
5


Retail Properties of America, Inc.
Capitalization
(amounts in thousands, except ratios)
 
Capitalization Data
 
 
 
 
 
 
September 30, 2013
 
December 31, 2012
Equity Capitalization
 
 

 
 

Common stock shares outstanding
 
236,259

 
230,643

Common share price
 
$
13.75

 
$
11.97

 
 
3,248,561

 
2,760,797

Series A preferred stock
 
135,000

 
135,000

Total equity capitalization
 
$
3,383,561

 
$
2,895,797

 
 
 
 
 
Debt Capitalization
 
 

 
 

Total mortgages payable (a)
 
$
1,708,534

 
$
2,088,581

Discount, net of accumulated amortization
 
(1,109
)
 
(1,492
)
Total mortgage debt, net
 
1,707,425

 
2,087,089

 
 
 
 
 
Notes payable
 
—

 
125,000

Unsecured term loan
 
450,000

 
300,000

Unsecured revolving line of credit
 
165,000

 
80,000

Total consolidated debt capitalization
 
2,322,425

 
2,592,089

 
 
 
 
 
Pro rata share of our investment property unconsolidated
       joint ventures' total debt
 
83,959

 
103,540

Premium, net of accumulated amortization
 
94

 
2,138

Discount, net of accumulated amortization
 
(171
)
 
(199
)
Total mortgage debt, net
 
83,882

 
105,479

 
 
 
 
 
Combined debt capitalization
 
2,406,307

 
2,697,568

 
 
 
 
 
Total capitalization at end of period
 
$
5,789,868

 
$
5,593,365

 

Reconciliation of Debt to Total Net Debt and Combined Net Debt
 
 
 
 
 
 
 
September 30, 2013
 
December 31, 2012
 
 
 
 
 
Total consolidated debt
 
$
2,322,425

 
$
2,592,089

Add: mortgages payable associated with investment properties held for sale
 
18,613

 
—

Less: consolidated cash and cash equivalents
 
(70,321
)
 
(138,069
)
Net debt
 
2,270,717

 
2,454,020

Adjusted EBITDA (b) (c)
 
385,404

 
371,624

Net Debt to Adjusted EBITDA
 
5.9x

 
6.6x

Net Debt and Preferred Stock to Adjusted EBITDA
 
6.2x

 
7.0x

 
 
 
 
 
Net debt
 
2,270,717

 
2,454,020

Add: pro rata share of our investment property unconsolidated joint
ventures' total debt
 
83,882

 
105,479

Less: pro rata share of our investment property unconsolidated joint
ventures' cash and cash equivalents
 
(1,557
)
 
(3,308
)
Combined net debt
 
2,353,042

 
2,556,191

Combined Adjusted EBITDA (b) (c)
 
397,768

 
386,264

Combined Net Debt to Combined Adjusted EBITDA
 
5.9x

 
6.6x

Combined Net Debt and Preferred Stock to Combined Adjusted EBITDA
 
6.3x

 
7.0x



(a)
Excludes mortgages payable outstanding as of September 30, 2013 of $18,613 that were associated with two investment properties held for sale.
(b)
For purposes of these ratio calculations, annualized three months ended figures were used.
(c)
Refer to pages 20 - 24 for definitions and reconciliations of non-GAAP financial measures.

3rd Quarter 2013 Supplemental Information
 
6




Retail Properties of America, Inc.
Unsecured Credit Facility Covenants (a)
(amounts in thousands, except percentages and ratios)

 
 
Covenant
 
September 30, 2013
 
 
 
 

Leverage ratio
< 60%
(b)
41.55
%
 
 
 
 

Fixed charge coverage ratio
> 1.50x
 
2.04x

 
 
 
 

Secured indebtedness as a percentage of Total Asset Value
< 50.0%
(b) (c)
29.56
%
 
 
 
 

Unencumbered asset pool covenants:
 
 
 

 
 
 
 

Leverage ratio
< 60%
(b)
26.63
%
 
 
 
 

Unencumbered interest coverage ratio
> 1.75x
 
10.86x



(a)
For a complete listing of all covenants related to our unsecured credit facility (comprised of our unsecured term loan and unsecured revolving line of credit) as well as covenant definitions, refer to the Third Amended and Restated Credit Agreement filed as Exhibit 10.1 to our Current Report on Form 8-K, dated May 13, 2013.
(b)
Based upon a capitalization rate of 7.25%.
(c)
This ratio will decrease to 45% on May 13, 2014.

3rd Quarter 2013 Supplemental Information
 
7



Retail Properties of America, Inc.
Consolidated Debt Summary as of September 30, 2013
(dollar amounts in thousands)
 

 
 
Balance
 
Weighted Average (WA)
Interest Rate
 
WA Years to Maturity
 
 
 
 
 
 
 
Fixed rate mortgages payable (a) (b)
 
$
1,697,617

 
6.15
%
 
4.9 years
Variable rate construction loan
 
10,917

 
2.44
%
 
1.1 years
Total mortgages payable
 
1,708,534

 
6.13
%
 
4.8 years
 
 
 
 
 
 
 
Unsecured credit facility:
 
 

 
 

 
 
Fixed rate portion of term loan (c)
 
300,000

 
1.99
%
 
4.6 years
Variable rate portion of term loan
 
150,000

 
1.64
%
 
4.6 years
Variable rate revolving line of credit
 
165,000

 
1.69
%
 
3.6 years
Total unsecured credit facility
 
615,000

 
1.82
%
 
4.3 years
 
 
 
 
 
 
 
Total consolidated indebtedness
 
$
2,323,534

 
4.99
%
(d)
4.7 years

 

Consolidated Debt Maturity Schedule as of September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Year
 
Fixed Rate
 
Variable Rate
 
Total (a)
 
% of Total
 
WA Rates on Total Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
2013
 
$
65,479

 
$
—

 
$
65,479

 
2.8
%
 
4.63
%
 
2014
 
53,364

 
10,917

 
64,281

 
2.8
%
 
5.57
%
 
2015
 
439,959

 
—

 
439,959

 
18.9
%
 
5.79
%
 
2016
 
37,823

 
—

 
37,823

 
1.6
%
 
6.22
%
 
2017
 
285,617

 
165,000

 
450,617

 
19.4
%
 
4.25
%
 
2018
 
312,369

 
150,000

 
462,369

 
19.9
%
 
2.01
%
 
2019
 
514,808

 
—

 
514,808

 
22.2
%
 
7.50
%
 
2020
 
22,403

 
—

 
22,403

 
1.0
%
 
7.56
%
 
2021
 
3,327

 
—

 
3,327

 
0.1
%
 
4.92
%
 
2022
 
178,885

 
—

 
178,885

 
7.7
%
 
4.86
%
 
Thereafter
 
83,583

 
—

 
83,583

 
3.6
%
 
4.60
%
 
Total
 
$
1,997,617

 
$
325,917

 
$
2,323,534

 
100.0
%
 
4.99
%
(d)

 
(a)
Balance does not include mortgage discount of $1,109, net of accumulated amortization, that was outstanding as of September 30, 2013.
(b)
Excludes $18,613 of mortgages payable outstanding as of September 30, 2013 associated with two investment properties held for sale. The weighted average interest rate for these properties was 6.01% and the weighted average years to maturity was 1.4 years.
(c)
In July 2012, we entered into an interest rate swap transaction to fix the variable rate portion of $300,000 of our term loan to a fixed rate of 0.54% from July 31, 2012 through February 24, 2016. The margin on the unsecured term loan is based on a leverage grid and ranges from 1.45% to 2.00%. The applicable margin was 1.45% as of September 30, 2013.
(d)
Interest rates presented exclude the impact of the discount and capitalized loan fee amortization. As of September 30, 2013, our overall weighted average interest rate for consolidated debt including the impact of discount and loan fee amortization was 5.30%.

3rd Quarter 2013 Supplemental Information
 
8


Retail Properties of America, Inc.
Acquisitions and Dispositions for the Nine Months Ended September 30, 2013
(amounts in thousands, except square footage amounts)


Acquisitions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross (at 100%)
 
Pro Rata Share
Property Name
 
Acquisition Date
 
Joint Venture (a)
 
Property Type
 
Gross Leasable
Area (GLA)
 
Purchase Price
 
Mortgage
Debt
 
GLA
 
Purchase Price
 
Mortgage
Debt
None
 
n/a
 
n/a
 
n/a
 
—

 
$
—

 
$
—

 
—

 
$
—

 
$
—



Dispositions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross (at 100%)
 
Pro Rata Share
Property Name
 
Disposition Date
 
Joint Venture (a)
 
Property Type
 
GLA
 
Consideration
 
Mortgage Debt
Extinguished
 
GLA
 
Consideration
 
Mortgage Debt
Extinguished
Consolidated
 
 
 
 
 
 
 
 

 
 

 
 

 
 

 
 

 
 

Mervyns - Ridgecrest
 
January 16, 2013
 
n/a
 
Single-user retail
 
59,000

 
$
500

 
$
—

 
59,000

 
$
500

 
$
—

Mervyns - Highland
 
January 16, 2013
 
n/a
 
Single-user retail
 
80,500

 
2,133

 
—

 
80,500

 
2,133

 
—

American Express - DePere
 
January 25, 2013
 
n/a
 
Single-user office
 
132,300

 
17,233

 
—

 
132,300

 
17,233

 
—

Dick's Sporting Goods - Fresno
 
June 21, 2013
 
n/a
 
Multi-tenant retail
 
77,400

 
6,500

 
—

 
77,400

 
6,500

 
—

Raytheon Facility
 
July 31, 2013
 
n/a
 
Single-user office
 
105,000

 
11,500

 
—

 
105,000

 
11,500

 
—

LA Fitness - Oceanside
 
September 26, 2013
 
n/a
 
Single-user retail
 
75,400

 
17,000

 
—

 
75,400

 
17,000

 
—

Other (b)
 
 
 
 
 
 
 
 

 
 

 
 

 
 

 
 

 
 

First quarter
 
Various
 
n/a
 
Various
 
46,700

 
11,864

 
—

 
46,700

 
11,864

 
—

Second quarter
 
April 12, 2013
 
n/a
 
Parcel
 
7,000

 
1,495

 
—

 
7,000

 
1,495

 
—

Third quarter
 
September 30, 2013
 
n/a
 
Parcel
 
—

 
546

 
—

 
—

 
546

 
—

 
 
 
 
 
 
 
 
583,300

 
$
68,771

 
$
—

 
583,300

 
$
68,771

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated
 
 
 
 
 
 
 
 

 
 

 
 

 
 

 
 

 
 

Parker, CO
 
March 27, 2013
 
Hampton
 
Multi-tenant retail
 
51,700

 
$
8,800

 
$
8,670

 
49,600

 
$
8,439

 
$
8,315

Littleton, CO
 
May 6, 2013
 
Hampton
 
Multi-tenant retail
 
45,100

 
4,500

 
3,963

 
43,300

 
4,316

 
3,801

 
 
 
 
 
 
 
 
96,800

 
$
13,300

 
$
12,633

 
92,900

 
$
12,755

 
$
12,116



(a)
As of September 30, 2013, no properties remained in the Hampton joint venture and the venture has been dissolved. As of September 30, 2013, we held 20.0% ownership interests in our RioCan and MS Inland unconsolidated joint ventures. On October 1, 2013, we dissolved our joint venture arrangement with our partner in RioCan.
(b)
Includes proceeds from earnouts and the sale of parcels at certain operating and development properties.

3rd Quarter 2013 Supplemental Information
 
9



Retail Properties of America, Inc.
Property Overview as of September 30, 2013
(dollar amounts and square footage in thousands)


Consolidated Operating Properties at 100%:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Type/Region
 
Number of Properties
 
GLA
 
% of Total GLA (a)
 
Occupancy
 
% Leased Including Signed
 
Annualized Base Rent (ABR)
 
% of Total ABR (a)
 
ABR per Occupied Sq. Ft.
Retail:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North (b)
 
81

 
10,470

 
32.7
%
 
92.6
%
 
93.9
%
 
$
136,246

 
32.0
%
 
$
14.05

East (c)
 
66

 
8,555

 
26.7
%
 
93.3
%
 
95.5
%
 
105,221

 
24.8
%
 
13.18

West (d)
 
29

 
6,209

 
19.4
%
 
91.0
%
 
92.4
%
 
85,013

 
20.0
%
 
15.05

South (e)
 
48

 
6,796

 
21.2
%
 
90.5
%
 
91.9
%
 
98,839

 
23.2
%
 
16.07

Total - Retail
 
224

 
32,030

 
100.0
%
 
92.0
%
 
93.6
%
 
425,319

 
100.0
%
 
14.43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Office
 
8

 
1,660

 
 

 
100.0
%
 
100.0
%
 
20,137

 
 

 
12.13

Industrial
 
2

 
287

 
 

 
100.0
%
 
100.0
%
 
1,540

 
 

 
5.37

Total Other
 
10

 
1,947

 
 

 
100.0
%
 
100.0
%
 
21,677

 
 

 
11.13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Consolidated Operating Portfolio
 
234

 
33,977

 
 

 
92.5
%
 
94.0
%
 
$
446,996

 
 

 
$
14.22


Unconsolidated Operating Properties at 100%:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Type/Region
 
RPAI Ownership %
 
Number of Properties
 
GLA
 
% of Total GLA (a)
 
Occupancy
 
% Leased Including Signed
 
ABR
 
% of Total ABR (a)
 
ABR per Occupied Sq. Ft.
Retail:
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

North
 
20.0%
 
1

 
221

 
5.1
%
 
99.4
%
 
99.4
%
 
$
4,501

 
6.9
%
 
$
20.49

East
 
20.0%
 
3

 
538

 
12.4
%
 
85.3
%
 
85.6
%
 
6,775

 
10.3
%
 
14.76

South
 
20.0%
 
16

 
3,565

 
82.5
%
 
94.9
%
 
95.6
%
 
54,400

 
82.8
%
 
16.08

Total - Retail
 
 
 
20

 
4,324

 
100.0
%
 
93.9
%
 
94.6
%
 
$
65,676

 
100.0
%
 
$
16.18


Total Pro Rata Operating Portfolio (f):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Type/Region
 
Number of Properties
 
GLA
 
% of Total GLA (a)
 
Occupancy
 
% Leased Including Signed
 
ABR
 
% of Total ABR (a)
 
ABR per Occupied Sq. Ft.
Retail:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

North (b)
 
82

 
10,514

 
32.0
%
 
92.6
%
 
93.9
%
 
$
137,146

 
31.3
%
 
$
14.09

East (c)
 
69

 
8,663

 
26.3
%
 
93.2
%
 
95.4
%
 
106,576

 
24.3
%
 
13.20

West (d)
 
29

 
6,209

 
18.9
%
 
91.0
%
 
92.4
%
 
85,013

 
19.4
%
 
15.05

South (e)
 
64

 
7,509

 
22.8
%
 
90.9
%
 
92.2
%
 
109,719

 
25.0
%
 
16.07

Total - Retail
 
244

 
32,895

 
100.0
%
 
92.1
%
 
93.6
%
 
438,454

 
100.0
%
 
14.47

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Office
 
8

 
1,660

 
 

 
100.0
%
 
100.0
%
 
20,137

 
 

 
12.13

Industrial
 
2

 
287

 
 

 
100.0
%
 
100.0
%
 
1,540

 
 

 
5.37

Total Other
 
10

 
1,947

 
 

 
100.0
%
 
100.0
%
 
21,677

 
 

 
11.13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Pro Rata Share
 
254

 
34,842

 
 

 
92.5
%
 
94.0
%
 
$
460,131

 
 

 
$
14.28



(a)
Percentages are only provided for our retail operating portfolio.
(b)
Excludes one single-user retail property classified as held for sale as of September 30, 2013.
(c)
Excludes one single-user retail property classified as held for sale as of September 30, 2013.
(d)
Excludes one multi-tenant retail property classified as held for sale as of September 30, 2013.
(e)
Excludes one single-user and one multi-tenant retail property classified as held for sale as of September 30, 2013.
(f)
Includes our consolidated operating properties plus our pro rata share of unconsolidated operating properties.

3rd Quarter 2013 Supplemental Information
 
10



Retail Properties of America, Inc.
State/Regional Summary as of September 30, 2013
(dollar amounts and square footage in thousands)

Total Pro Rata Operating Portfolio (a):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Type/Region
 
Number of Properties
 
GLA
 
% of Total GLA (b)
 
Occupancy
 
% Leased Including Signed
 
ABR
 
% of Total ABR (b)
 
ABR per Occupied Sq. Ft.
Retail
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Connecticut
 
5

 
449

 
1.4
%
 
99.3
%
 
100.0
%
 
$
7,495

 
1.7
%
 
$
16.81

Indiana
 
4

 
653

 
2.0
%
 
93.3
%
 
98.3
%
 
5,736

 
1.3
%
 
9.41

Maine
 
2

 
423

 
1.3
%
 
97.5
%
 
97.5
%
 
4,299

 
1.0
%
 
10.42

Maryland
 
8

 
2,299

 
7.0
%
 
92.7
%
 
95.6
%
 
32,788

 
7.5
%
 
15.38

Massachusetts
 
5

 
1,184

 
3.6
%
 
95.4
%
 
96.0
%
 
12,948

 
3.0
%
 
11.46

Michigan
 
2

 
467

 
1.4
%
 
95.3
%
 
95.8
%
 
8,033

 
1.8
%
 
18.05

New Jersey
 
3

 
445

 
1.4
%
 
94.4
%
 
94.4
%
 
4,714

 
1.1
%
 
11.22

New York (c)
 
31

 
1,511

 
4.5
%
 
97.6
%
 
98.0
%
 
23,806

 
5.4
%
 
16.14

Ohio
 
6

 
990

 
3.0
%
 
74.2
%
 
74.3
%
 
9,403

 
2.1
%
 
12.80

Pennsylvania
 
12

 
1,335

 
4.1
%
 
93.9
%
 
94.1
%
 
16,691

 
3.8
%
 
13.31

Rhode Island
 
3

 
271

 
0.8
%
 
87.1
%
 
90.6
%
 
3,468

 
0.8
%
 
14.69

Vermont
 
1

 
487

 
1.5
%
 
91.9
%
 
92.3
%
 
7,765

 
1.8
%
 
17.35

Subtotal - North
 
82

 
10,514

 
32.0
%
 
92.6
%
 
93.9
%
 
137,146

 
31.3
%
 
14.09

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
East
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Alabama
 
6

 
372

 
1.1
%
 
93.9
%
 
96.8
%
 
4,571

 
1.0
%
 
13.09

Florida
 
14

 
1,593

 
4.8
%
 
90.7
%
 
94.9
%
 
21,070

 
4.8
%
 
14.58

Georgia (d)
 
13

 
1,846

 
5.5
%
 
93.3
%
 
95.0
%
 
20,424

 
4.7
%
 
11.86

Illinois
 
7

 
990

 
3.0
%
 
95.7
%
 
95.7
%
 
16,406

 
3.7
%
 
17.32

Missouri
 
5

 
812

 
2.5
%
 
85.7
%
 
90.7
%
 
7,963

 
1.8
%
 
11.44

North Carolina
 
3

 
681

 
2.1
%
 
99.7
%
 
99.7
%
 
7,357

 
1.7
%
 
10.84

South Carolina
 
12

 
1,270

 
3.9
%
 
95.6
%
 
96.9
%
 
14,281

 
3.3
%
 
11.76

Tennessee
 
7

 
712

 
2.2
%
 
94.1
%
 
94.7
%
 
7,532

 
1.7
%
 
11.24

Virginia
 
2

 
387

 
1.2
%
 
91.8
%
 
95.0
%
 
6,972

 
1.6
%
 
19.65

Subtotal - East
 
69

 
8,663

 
26.3
%
 
93.2
%
 
95.4
%
 
106,576

 
24.3
%
 
13.20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
West (e)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Arizona
 
4

 
772

 
2.3
%
 
92.6
%
 
94.2
%
 
10,680

 
2.4
%
 
14.94

California
 
9

 
1,336

 
4.2
%
 
93.6
%
 
94.7
%
 
23,273

 
5.4
%
 
18.61

Colorado
 
2

 
475

 
1.4
%
 
89.1
%
 
91.6
%
 
4,683

 
1.1
%
 
11.07

Kansas
 
1

 
237

 
0.7
%
 
100.0
%
 
100.0
%
 
2,331

 
0.5
%
 
9.84

Montana
 
1

 
162

 
0.5
%
 
100.0
%
 
100.0
%
 
1,930

 
0.4
%
 
11.91

Nevada
 
3

 
607

 
1.8
%
 
81.1
%
 
86.3
%
 
8,868

 
2.0
%
 
18.01

New Mexico
 
1

 
224

 
0.7
%
 
97.9
%
 
97.9
%
 
3,476

 
0.8
%
 
15.85

Utah
 
2

 
717

 
2.2
%
 
83.3
%
 
84.7
%
 
9,797

 
2.2
%
 
16.40

Washington
 
4

 
1,257

 
3.8
%
 
92.5
%
 
93.0
%
 
15,096

 
3.5
%
 
12.98

Wisconsin
 
2

 
422

 
1.3
%
 
92.6
%
 
92.6
%
 
4,879

 
1.1
%
 
12.49

Subtotal - West
 
29

 
6,209

 
18.9
%
 
91.0
%
 
92.4
%
 
85,013

 
19.4
%
 
15.05

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
South
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Louisiana
 
3

 
311

 
0.9
%
 
100.0
%
 
100.0
%
 
3,896

 
0.9
%
 
12.53

Oklahoma
 
6

 
164

 
0.5
%
 
100.0
%
 
100.0
%
 
2,357

 
0.5
%
 
14.37

Texas (f)
 
55

 
7,034

 
21.4
%
 
90.3
%
 
91.7
%
 
103,466

 
23.6
%
 
16.29

Subtotal - South
 
64

 
7,509

 
22.8
%
 
90.9
%
 
92.2
%
 
109,719

 
25.0
%
 
16.07

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total - Pro Rata Retail
 
244

 
32,895

 
100.0
%
 
92.1
%
 
93.6
%
 
438,454

 
100.0
%
 
14.47

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Office
 
8

 
1,660

 
 

 
100.0
%
 
100.0
%
 
20,137

 
 

 
12.13

Industrial
 
2

 
287

 
 

 
100.0
%
 
100.0
%
 
1,540

 
 

 
5.37

Total - Pro Rata Other
 
10

 
1,947

 
 

 
100.0
%
 
100.0
%
 
21,677

 
 

 
11.13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Pro Rata Operating Portfolio
 
254

 
34,842

 
 

 
92.5
%
 
94.0
%
 
$
460,131

 
 

 
$
14.28


(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)
Excludes one single-user retail property classified as held for sale as of September 30, 2013.
(d)
Excludes one single-user retail property classified as held for sale as of September 30, 2013.
(e)
Excludes one multi-tenant retail property located in Iowa classified as held for sale as of September 30, 2013.
(f)
Excludes one single-user and one multi-tenant retail property classified as held for sale as of September 30, 2013.

3rd Quarter 2013 Supplemental Information
 
11




Retail Properties of America, Inc.
Retail Operating Portfolio Occupancy Breakdown as of September 30, 2013
(square footage 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 Properties
 
GLA
 
Occupancy
 
GLA
 
Occupancy
 
GLA
 
Occupancy
 
GLA
 
Occupancy
 
GLA
 
Occupancy
Retail
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North (a)
 
81

 
10,470

 
92.6
%
 
6,411

 
96.6
%
 
1,917

 
93.7
%
 
946

 
85.1
%
 
1,196

 
75.6
%
East (b)
 
66

 
8,555

 
93.3
%
 
4,651

 
97.6
%
 
1,584

 
97.7
%
 
767

 
87.6
%
 
1,553

 
79.0
%
West (c)
 
29

 
6,209

 
91.0
%
 
3,171

 
96.6
%
 
1,284

 
94.9
%
 
676

 
77.1
%
 
1,078

 
78.4
%
South (d)
 
48

 
6,796

 
90.5
%
 
2,927

 
96.6
%
 
1,395

 
88.0
%
 
928

 
90.3
%
 
1,546

 
81.3
%
Total - Consolidated at 100%
 
224

 
32,030

 
92.0
%
 
17,160

 
96.9
%
 
6,180

 
93.7
%
 
3,317

 
85.5
%
 
5,373

 
78.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total - % Leased including Signed
 
224

 
32,030

 
93.6
%
 
17,160

 
97.7
%
 
6,180

 
94.8
%
 
3,317

 
89.6
%
 
5,373

 
81.5
%
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 Properties
 
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

 
85.3
%
 
274

 
82.1
%
 
116

 
100.0
%
 
46

 
73.4
%
 
102

 
82.6
%
South
 
16

 
3,565

 
94.9
%
 
1,761

 
100.0
%
 
457

 
100.0
%
 
480

 
82.9
%
 
867

 
88.3
%
Total - Unconsolidated at 100%
 
20

 
4,324

 
93.9
%
 
2,108

 
97.7
%
 
701

 
100.0
%
 
532

 
82.2
%
 
983

 
87.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total - % Leased including Signed
 
20

 
4,324

 
94.6
%
 
2,108

 
97.7
%
 
701

 
100.0
%
 
532

 
84.5
%
 
983

 
89.6
%
Total Pro Rata Retail Operating Portfolio (e):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 Properties
 
GLA
 
Occupancy
 
GLA
 
Occupancy
 
GLA
 
Occupancy
 
GLA
 
Occupancy
 
GLA
 
Occupancy
Retail
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

North (a)
 
82

 
10,514

 
92.6
%
 
6,426

 
96.6
%
 
1,942

 
93.8
%
 
947

 
85.2
%
 
1,199

 
75.6
%
East (b)
 
69

 
8,663

 
93.2
%
 
4,706

 
97.4
%
 
1,607

 
97.7
%
 
777

 
87.5
%
 
1,573

 
79.1
%
West (c)
 
29

 
6,209

 
91.0
%
 
3,171

 
96.6
%
 
1,284

 
94.9
%
 
676

 
77.1
%
 
1,078

 
78.4
%
South (d)
 
64

 
7,509

 
90.9
%
 
3,280

 
97.0
%
 
1,486

 
88.8
%
 
1,024

 
89.6
%
 
1,719

 
82.0
%
Total - Pro Rata Share
 
244

 
32,895

 
92.1
%
 
17,583

 
96.9
%
 
6,319

 
93.8
%
 
3,424

 
85.4
%
 
5,569

 
79.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total - % Leased including Signed
 
244

 
32,895

 
93.6
%
 
17,583

 
97.7
%
 
6,319

 
94.9
%
 
3,424

 
89.5
%
 
5,569

 
81.8
%

(a)
Excludes one single-user retail property classified as held for sale as of September 30, 2013.
(b)
Excludes one single-user retail property classified as held for sale as of September 30, 2013.
(c)
Excludes one multi-tenant retail property classified as held for sale as of September 30, 2013.
(d)
Excludes one single-user and one multi-tenant retail property classified as held for sale as of September 30, 2013.
(e)
Includes our consolidated retail operating portfolio plus our pro rata share of unconsolidated retail operating portfolio.

3rd Quarter 2013 Supplemental Information
 
12



Retail Properties of America, Inc.
Top Retail Tenants as of September 30, 2013
(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 September 30, 2013. Dollars (other than per square foot information) and square feet of GLA are presented in thousands.
Tenant
 
Primary DBA
 
Number
of Stores
 
Occupied GLA
 
% of Occupied GLA
 
ABR
 
% of Total ABR
 
ABR per Occupied Sq. Ft.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Best Buy Co., Inc.
 
Best Buy, Best Buy Mobile, Pacific Sales
 
31

 
1,069

 
3.5
%
 
$
14,677

 
3.3
%
 
$
13.73

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ahold USA, Inc.
 
Giant Foods, Stop & Shop, Martin's
 
12

 
675

 
2.2
%
 
12,990

 
3.0
%
 
19.24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The TJX Companies Inc.
 
HomeGoods, Marshalls, TJ Maxx
 
47

 
1,238

 
4.1
%
 
11,701

 
2.7
%
 
9.45

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bed Bath & Beyond Inc.
 
Bed Bath & Beyond, Buy Buy Baby, The Christmas Tree Shops, Cost Plus World Market
 
35

 
851

 
2.8
%
 
11,166

 
2.5
%
 
13.12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ross Stores, Inc.
 
 
 
42

 
1,093

 
3.6
%
 
11,147

 
2.5
%
 
10.20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rite Aid Corporation
 
 
 
34

 
414

 
1.4
%
 
10,246

 
2.3
%
 
24.75

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PetSmart, Inc.
 
 
 
40

 
703

 
2.3
%
 
9,955

 
2.3
%
 
14.16

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Home Depot, Inc.
 
Home Depot, Home Decorators
 
10

 
1,112

 
3.7
%
 
9,380

 
2.1
%
 
8.44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Sports Authority, Inc.
 
 
 
17

 
690

 
2.3
%
 
8,094

 
1.8
%
 
11.73

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Michaels Stores, Inc.
 
Michaels, Aaron Brothers Art & Frame
 
32

 
645

 
2.1
%
 
7,646

 
1.7
%
 
11.85

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pier 1 Imports, Inc.
 
 
 
38

 
378

 
1.2
%
 
6,964

 
1.6
%
 
18.42

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Publix Super Markets Inc.
 
 
 
15

 
637

 
2.1
%
 
6,751

 
1.5
%
 
10.60

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Edwards Theaters, Inc.
 
 
 
2

 
219

 
0.7
%
 
6,609

 
1.5
%
 
30.18

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wal-Mart Stores, Inc.
 
Wal-Mart, Sam's Club
 
7

 
963

 
3.2
%
 
6,315

 
1.4
%
 
6.56

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dicks Sporting Goods, Inc.
 
Dick's Sporting Goods, Golf Galaxy, Field & Stream
 
11

 
504

 
1.7
%
 
6,231

 
1.4
%
 
12.36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Kohl's Corporation
 
 
 
10

 
849

 
2.8
%
 
5,826

 
1.3
%
 
6.86

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office Depot, Inc.
 
 
 
21

 
410

 
1.4
%
 
5,410

 
1.2
%
 
13.20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascena Retail Group Inc.
 
Catherine's, Dress Barn, Justice, Lane Bryant, Maurices
 
56

 
269

 
0.9
%
 
5,215

 
1.2
%
 
19.39

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB Acquisition LLC
 
Acme, Jewel-Osco, Shaw's Supermarkets
 
5

 
312

 
1.0
%
 
4,763

 
1.1
%
 
15.27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Staples, Inc.
 
 
 
18

 
342

 
1.1
%
 
4,738

 
1.1
%
 
13.85

Total Top Retail Tenants
 
 
483

 
13,373

 
44.1
%
 
$
165,824

 
37.5
%
 
$
12.40



3rd Quarter 2013 Supplemental Information
 
13



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 September 30, 2013 and for the preceding four quarters. Leases of less than 12 months have been excluded.
Total Leases
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Leases Signed
 
GLA Signed
 
New Contractual
Rent per Square Foot (PSF) (a)
 
Prior Contractual
Rent PSF (a)
 
% Change over Prior ABR (a)
 
WA Lease Term
 
Tenant Allowances PSF
Q3 2013
 
235

 
1,660

 
$
13.97

 
$
13.49

 
3.56
 %
 
5.48

 
$
3.71

Q2 2013
 
257

 
1,344

 
$
15.90

 
$
15.17

 
4.81
 %
 
4.75

 
$
4.03

Q1 2013
 
159

 
906

 
$
15.15

 
$
14.35

 
5.57
 %
 
5.25

 
$
7.62

Q4 2012
 
178

 
1,094

 
$
16.86

 
$
15.98

 
5.51
 %
 
6.70

 
$
15.93

Total - 12 months
 
829

 
5,004

 
$
15.29

 
$
14.60

 
4.73
 %
 
5.52

 
$
7.17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comparable Renewal Leases
 
 

 
 

 
 

 
 

 
 

 
 
Number of Leases Signed
 
GLA Signed
 
New
Contractual Rent PSF
 
Prior Contractual
Rent PSF
 
% Change over Prior ABR
 
WA Lease Term
 
Tenant Allowances PSF
Q3 2013
 
162

 
1,318

 
$
13.58

 
$
13.21

 
2.80
 %
 
4.91

 
$
0.47

Q2 2013
 
169

 
1,070

 
$
15.53

 
$
14.83

 
4.72
 %
 
4.41

 
$
0.82

Q1 2013
 
119

 
762

 
$
14.62

 
$
13.93

 
4.95
 %
 
4.79

 
$
3.20

Q4 2012
 
111

 
686

 
$
16.18

 
$
15.02

 
7.72
 %
 
5.76

 
$
2.24

Total - 12 months
 
561

 
3,836

 
$
14.80

 
$
14.13

 
4.74
 %
 
4.91

 
$
1.43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comparable New Leases
 
 

 
 

 
 

 
 

 
 

 
 
Number of Leases Signed
 
GLA Signed
 
New
Contractual Rent PSF
 
Prior Contractual
Rent PSF
 
% Change over Prior ABR
 
WA Lease Term
 
Tenant Allowances PSF
Q3 2013
 
18

 
69

 
$
21.48

 
$
18.85

 
13.95
 %
 
8.45

 
$
24.39

Q2 2013
 
25

 
75

 
$
21.11

 
$
20.09

 
5.08
 %
 
5.29

 
$
16.32

Q1 2013
 
16

 
37

 
$
26.00

 
$
22.98

 
13.14
 %
 
6.69

 
$
18.04

Q4 2012
 
24

 
91

 
$
22.07

 
$
23.26

 
(5.12
)%
 
7.61

 
$
25.37

Total - 12 months
 
83

 
272

 
$
22.19

 
$
21.23

 
4.52
 %
 
7.06

 
$
21.62

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Comparable New and Renewal Leases (b)
 
 

 
 

 
 

 
 

 
 

 
 
Number of Leases Signed
 
GLA Signed
 
New
Contractual Rent PSF
 
Prior Contractual
Rent PSF
 
% Change over Prior ABR
 
WA Lease Term
 
Tenant Allowances PSF
Q3 2013
 
55

 
273

 
$
12.39

 
n/a
 
n/a
 
7.18

 
$
14.13

Q2 2013
 
63

 
199

 
$
15.14

 
n/a
 
n/a
 
6.31

 
$
16.60

Q1 2013
 
24

 
107

 
$
15.40

 
n/a
 
n/a
 
7.52

 
$
35.46

Q4 2012
 
43

 
317

 
$
15.69

 
n/a
 
n/a
 
8.44

 
$
42.87

Total - 12 months
 
185

 
896

 
$
14.53

 
n/a
 
n/a
 
7.50

 
$
27.38

 

(a)
Excludes the impact of Non-Comparable New and Renewal Leases.
(b)
Includes leases signed on units that were vacant for over 12 months, leases signed without fixed rental payments and leases signed where the previous and the current lease do not have a consistent lease structure.

3rd Quarter 2013 Supplemental Information
 
14


Retail Properties of America, Inc.
Retail Lease Expirations as of September 30, 2013
(dollar amounts and square footage in thousands)

The following tables set forth a summary, as of September 30, 2013, of lease expirations scheduled to occur during the remainder of 2013 and each of the nine calendar years from 2014 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 September 30, 2013. Dollars (other than per square foot information) and square feet of GLA are presented in thousands in the table.
Lease Expiration Year
 
Lease Count
 
GLA
 
% of Occupied GLA
 
% of Total GLA
 
ABR
 
% of Total ABR
 
ABR per Occupied Sq. Ft.
 
ABR at Exp. (a)
 
ABR per Occupied Sq. Ft. at Exp.
2013
 
104

 
276

 
1.0
%
 
0.8
%
 
$
5,726

 
1.3
%
 
$
20.75

 
$
5,726

 
$
20.75

2014
 
650

 
2,593

 
8.5
%
 
7.9
%
 
45,088

 
10.4
%
 
17.39

 
45,175

 
17.42

2015
 
518

 
3,121

 
10.3
%
 
9.5
%
 
45,873

 
10.5
%
 
14.70

 
46,427

 
14.88

2016
 
444

 
2,643

 
8.7
%
 
8.1
%
 
45,272

 
10.3
%
 
17.13

 
46,127

 
17.45

2017
 
458

 
2,888

 
9.6
%
 
8.8
%
 
44,465

 
10.1
%
 
15.40

 
45,646

 
15.81

2018
 
486

 
3,095

 
10.2
%
 
9.4
%
 
50,043

 
11.4
%
 
16.17

 
52,786

 
17.06

2019
 
250

 
3,281

 
10.9
%
 
10.0
%
 
44,696

 
10.2
%
 
13.62

 
47,436

 
14.46

2020
 
124

 
2,104

 
6.9
%
 
6.4
%
 
24,441

 
5.5
%
 
11.62

 
26,023

 
12.37

2021
 
104

 
1,612

 
5.3
%
 
4.9
%
 
23,561

 
5.4
%
 
14.62

 
25,779

 
15.99

2022
 
118

 
2,220

 
7.3
%
 
6.7
%
 
27,633

 
6.3
%
 
12.45

 
29,385

 
13.24

Thereafter
 
270

 
6,286

 
20.8
%
 
19.1
%
 
78,881

 
18.0
%
 
12.55

 
85,177

 
13.55

Month to month
 
59

 
178

 
0.5
%
 
0.5
%
 
2,775

 
0.6
%
 
15.59

 
2,775

 
15.59

Leased Total
 
3,585

 
30,297

 
100.0
%
 
92.1
%
 
$
438,454

 
100.0
%
 
$
14.47

 
$
458,462

 
$
15.13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leases signed but not commenced
 
108

 
506

 
—

 
1.5
%
 
$
8,534

 
—

 
$
16.87

 
$
9,132

 
$
18.05

Available
 
 

 
2,092

 
—

 
6.4
%
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 tables.
Anchor
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Lease Expiration Year
 
Lease Count
 
GLA
 
% of Occupied GLA
 
% of Total GLA
 
ABR
 
% of Total ABR
 
ABR per Occupied Sq. Ft.
 
ABR at Exp. (a)
 
ABR per Occupied Sq. Ft. at Exp.
2013
 
3

 
47

 
0.2
%
 
0.1
%
 
$
552

 
0.1
%
 
$
11.74

 
$
552

 
$
11.74

2014
 
58

 
1,132

 
3.7
%
 
3.4
%
 
13,852

 
3.2
%
 
12.24

 
13,873

 
12.26

2015
 
94

 
2,093

 
6.9
%
 
6.4
%
 
23,166

 
5.3
%
 
11.07

 
23,300

 
11.13

2016
 
68

 
1,702

 
5.6
%
 
5.2
%
 
22,749

 
5.2
%
 
13.37

 
23,041

 
13.54

2017
 
68

 
1,931

 
6.4
%
 
5.9
%
 
21,057

 
4.8
%
 
10.90

 
21,098

 
10.93

2018
 
86

 
2,044

 
6.7
%
 
6.2
%
 
24,905

 
5.7
%
 
12.18

 
25,615

 
12.53

2019
 
109

 
2,854

 
9.4
%
 
8.7
%
 
34,682

 
7.9
%
 
12.15

 
36,441

 
12.77

2020
 
56

 
1,853

 
6.1
%
 
5.6
%
 
18,607

 
4.2
%
 
10.04

 
19,588

 
10.57

2021
 
41

 
1,371

 
4.5
%
 
4.2
%
 
18,718

 
4.3
%
 
13.65

 
20,121

 
14.68

2022
 
56

 
2,013

 
6.6
%
 
6.1
%
 
22,448

 
5.1
%
 
11.15

 
23,427

 
11.64

Thereafter
 
151

 
5,869

 
19.4
%
 
17.8
%
 
68,538

 
15.6
%
 
11.68

 
72,573

 
12.37

Month to month
 
3

 
45

 
0.1
%
 
0.1
%
 
451

 
0.1
%
 
10.02

 
451

 
10.02

Leased Total
 
793

 
22,954

 
75.6
%
 
69.7
%
 
$
269,725

 
61.5
%
 
$
11.75

 
$
280,080

 
$
12.20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leases signed but not commenced
 
10

 
230

 
—

 
0.7
%
 
$
2,796

 
—

 
$
12.16

 
$
2,984

 
$
12.97

Available
 
 

 
719

 
—

 
2.2
%
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Anchor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lease Expiration Year
 
Lease Count
 
GLA
 
% of Occupied GLA
 
% of Total GLA
 
ABR
 
% of Total ABR
 
ABR per Occupied Sq. Ft.
 
ABR at Exp. (a)
 
ABR per Occupied Sq. Ft. at Exp.
2013
 
101

 
229

 
0.8
%
 
0.7
%
 
$
5,174

 
1.2
%
 
$
22.59

 
$
5,174

 
$
22.59

2014
 
592

 
1,461

 
4.8
%
 
4.5
%
 
31,236

 
7.2
%
 
21.38

 
31,302

 
21.43

2015
 
424

 
1,028

 
3.4
%
 
3.1
%
 
22,707

 
5.2
%
 
22.09

 
23,127

 
22.50

2016
 
376

 
941

 
3.1
%
 
2.9
%
 
22,523

 
5.1
%
 
23.94

 
23,086

 
24.53

2017
 
390

 
957

 
3.2
%
 
2.9
%
 
23,408

 
5.3
%
 
24.46

 
24,548

 
25.65

2018
 
400

 
1,051

 
3.5
%
 
3.2
%
 
25,138

 
5.7
%
 
23.92

 
27,171

 
25.85

2019
 
141

 
427

 
1.5
%
 
1.3
%
 
10,014

 
2.3
%
 
23.45

 
10,995

 
25.75

2020
 
68

 
251

 
0.8
%
 
0.8
%
 
5,834

 
1.3
%
 
23.24

 
6,435

 
25.64

2021
 
63

 
241

 
0.8
%
 
0.7
%
 
4,843

 
1.1
%
 
20.10

 
5,658

 
23.48

2022
 
62

 
207

 
0.7
%
 
0.6
%
 
5,185

 
1.2
%
 
25.05

 
5,958

 
28.78

Thereafter
 
119

 
417

 
1.4
%
 
1.3
%
 
10,343

 
2.4
%
 
24.80

 
12,604

 
30.23

Month to month
 
56

 
133

 
0.4
%
 
0.4
%
 
2,324

 
0.5
%
 
17.47

 
2,324

 
17.47

Leased Total
 
2,792

 
7,343

 
24.4
%
 
22.4
%
 
$
168,729

 
38.5
%
 
$
22.98

 
$
178,382

 
$
24.29

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leases signed but not commenced
 
98

 
276

 
—

 
0.8
%
 
$
5,738

 
—

 
$
20.79

 
$
6,148

 
$
22.28

Available
 
 

 
1,373

 
—

 
4.2
%
 
 

 
 

 
 

 
 

 
 


(a)
Represents annualized base rent at the scheduled expiration of the lease giving effect to fixed contractual increases in base rent.

3rd Quarter 2013 Supplemental Information
 
15


Retail Properties of America, Inc.
Unconsolidated Joint Venture Combined Financial Statements
(amounts in thousands)
 

Total Unconsolidated Joint Venture Combined Balance Sheets (a)
 
 
September 30, 2013
 
December 31, 2012
 
 
 
 
 
Real estate assets
 
$
613,899

 
$
719,416

Less: accumulated depreciation
 
(73,962
)
 
(66,127
)
Real estate, net
 
539,937

 
653,289

 
 
 
 
 
Cash and cash equivalents
 
7,785

 
16,376

Receivables, net
 
10,013

 
11,350

Acquired lease intangible assets, net
 
91,802

 
127,565

Other assets, net
 
11,016

 
16,289

Assets associated with investment properties held for sale
 
104,592

 
—

Total assets
 
$
765,145

 
$
824,869

 
 
 
 
 
Mortgage debt, net (includes unamortized premium of $334 and $2,975,
respectively, and unamortized discount of $(857) and $(994), respectively)
 
$
351,410

 
$
471,122

Accounts payable and accrued expenses
 
9,967

 
15,976

Acquired lease intangible liabilities, net
 
10,835

 
14,669

Other liabilities
 
15,423

 
27,712

Liabilities associated with investment properties held for sale
 
71,938

 
—

Total liabilities
 
459,573

 
529,479

 
 
 
 
 
Total equity
 
305,572

 
295,390

Total liabilities and equity
 
$
765,145

 
$
824,869


 
RPAI Pro Rata Unconsolidated Joint Venture Combined Balance Sheets (b)
 
 
September 30, 2013
 
December 31, 2012
 
 
 
 
 
Real estate assets
 
$
141,123

 
$
154,757

Less: accumulated depreciation
 
(15,914
)
 
(14,961
)
Real estate, net
 
125,209

 
139,796

 
 
 
 
 
Cash and cash equivalents
 
1,557

 
3,308

Receivables, net
 
2,249

 
2,580

Acquired lease intangible assets, net
 
21,468

 
25,513

Other assets, net
 
2,546

 
3,891

Total assets
 
$
153,029

 
$
175,088

 
 
 
 
 
Mortgage debt, net (includes unamortized premium of $94 and $2,138,
respectively, and unamortized discount of $(171) and $(199), respectively)
 
$
83,882

 
$
105,479

Accounts payable and accrued expenses
 
2,277

 
3,412

Acquired lease intangible liabilities, net
 
2,548

 
2,934

Other liabilities
 
3,208

 
5,553

Total liabilities
 
91,915

 
117,378

 
 
 
 
 
Total equity
 
61,114

 
57,710

Total liabilities and equity
 
$
153,029

 
$
175,088

 
(a)
Represents combined balance sheets of our RioCan, MS Inland and Hampton unconsolidated joint ventures. We received a distribution representing our pro rata share of the final net assets of the Hampton venture prior to June 30, 2013, and that venture has been dissolved. On October 1, 2013, we dissolved our joint venture arrangement with our partner in RioCan.
(b)
Represents our pro rata share of the combined balance sheets of our RioCan, MS Inland and Hampton unconsolidated joint ventures, net of intercompany eliminations and GAAP adjustments for actual and anticipated real estate transactions between joint ventures or with RPAI due to our continuing involvement with the properties.

3rd Quarter 2013 Supplemental Information
 
16


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
September 30,
 
Nine Months Ended
September 30,
 
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Rental income
 
$
14,224

 
$
13,924

 
$
42,789

 
$
41,902

Tenant recovery income
 
4,724

 
4,582

 
14,473

 
14,246

Other property income
 
45

 
61

 
390

 
275

Total revenues
 
18,993

 
18,567

 
57,652

 
56,423

 
 
 
 
 
 
 
 
 
Property operating expenses
 
2,611

 
2,574

 
7,636

 
8,650

Real estate taxes
 
3,423

 
3,221

 
10,122

 
9,803

Depreciation and amortization
 
9,189

 
10,544

 
28,442

 
32,065

Loss on lease terminations
 
(18
)
 
933

 
830

 
1,955

General and administrative expenses
 
202

 
227

 
578

 
983

Other operating expenses
 
—

 
—

 
—

 
842

Total expenses
 
15,407

 
17,499

 
47,608

 
54,298

 
 
 
 
 
 
 
 
 
Operating income
 
3,586

 
1,068

 
10,044

 
2,125

 
 
 
 
 
 
 
 
 
Interest expense, net
 
(4,002
)
 
(4,432
)
 
(10,624
)
 
(13,392
)
Other income (expense), net
 
4,442

 
(146
)
 
4,446

 
20

Income (loss) from continuing operations
 
4,026

 
(3,510
)
 
3,866

 
(11,247
)
 
 
 
 
 
 
 
 
 
Discontinued operations:
 
 

 
 

 
 

 
 

Loss, net
 
(204
)
 
(554
)
 
(1,091
)
 
(3,228
)
Gain on sales of investment properties
 
—

 
149

 
1,019

 
2,593

Loss from discontinued operations
 
(204
)
 
(405
)
 
(72
)
 
(635
)
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
3,822

 
$
(3,915
)
 
$
3,794

 
$
(11,882
)
 
 
 
 
 
 
 
 
 
Funds From Operations (FFO) (b)
 
 

 
 

 
 

 
 

Net income (loss)
 
$
3,822

 
$
(3,915
)
 
$
3,794

 
$
(11,882
)
Depreciation and amortization
 
10,725

 
13,267

 
34,376

 
39,762

Provision for impairment of investment properties
 
—

 
71

 
298

 
1,593

Gain on sales of investment properties
 
—

 
(149
)
 
(1,019
)
 
(2,593
)
FFO
 
$
14,547

 
$
9,274

 
$
37,449

 
$
26,880

 

(a)
Represents combined statements of operations of our RioCan, MS Inland and Hampton unconsolidated joint ventures. We received a distribution representing our pro rata share of the final net assets of the Hampton venture prior to June 30, 2013, and that venture has been dissolved. On October 1, 2013, we dissolved our joint venture arrangement with our partner in RioCan.
(b)
Refer to page 20 for definition of FFO.

3rd Quarter 2013 Supplemental Information
 
17


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
September 30,
 
Nine Months Ended
September 30,
 
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Rental income
 
$
3,305

 
$
3,238

 
$
9,921

 
$
9,733

Tenant recovery income
 
1,080

 
1,051

 
3,302

 
3,245

Other property income
 
9

 
12

 
80

 
70

Total revenues
 
4,394

 
4,301

 
13,303

 
13,048

 
 
 
 
 
 
 
 
 
Property operating expenses
 
411

 
447

 
1,199

 
1,492

Real estate taxes
 
777

 
736

 
2,280

 
2,230

Depreciation and amortization
 
2,144

 
2,464

 
6,648

 
7,490

Loss on lease terminations
 
(3
)
 
187

 
178

 
391

General and administrative expenses
 
41

 
69

 
122

 
238

Other operating expenses
 
—

 
—

 
—

 
—

Total expenses
 
3,370

 
3,903

 
10,427

 
11,841

 
 
 
 
 
 
 
 
 
Operating income
 
1,024

 
398

 
2,876

 
1,207

 
 
 
 
 
 
 
 
 
Interest expense, net
 
(967
)
 
(974
)
 
(1,286
)
 
(3,006
)
Other income (expense), net
 
396

 
(27
)
 
404

 
(2
)
Income (loss) from continuing operations
 
453

 
(603
)
 
1,994

 
(1,801
)
 
 
 
 
 
 
 
 
 
Discontinued operations:
 
 

 
 

 
 

 
 

Income (loss), net
 
—

 
76

 
(96
)
 
(1,315
)
Gain on sales of investment properties
 
—

 
—

 
977

 
—

Income (loss) from discontinued operations
 
—

 
76

 
881

 
(1,315
)
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
453

 
$
(527
)
 
$
2,875

 
$
(3,116
)
RPAI ownership adjustments (b)
 
(327
)
 
(1,336
)
 
(3,611
)
 
(2,351
)
Net income (loss) attributable to RPAI's ownership interests
 
$
126

 
$
(1,863
)
 
$
(736
)
 
$
(5,467
)
 
 
 
 
 
 
 
 
 
Funds From Operations (FFO) (c)
 
 

 
 

 
 

 
 

Net income (loss) attributable to RPAI's ownership interests
 
$
126

 
$
(1,863
)
 
$
(736
)
 
$
(5,467
)
Depreciation and amortization
 
2,145

 
2,769

 
6,998

 
8,347

Provision for impairment of investment properties
 
—

 
210

 
286

 
1,440

Gain on sales of investment properties
 
—

 
—

 
(977
)
 
—

FFO
 
$
2,271

 
$
1,116

 
$
5,571

 
$
4,320

 

(a)
Represents our pro rata share of the combined statements of operations of our RioCan, MS Inland and Hampton unconsolidated joint ventures, net of intercompany eliminations and GAAP adjustments for actual and anticipated real estate transactions between joint ventures or with RPAI due to our continuing involvement with the properties.
(b)
Represents adjustments to reflect RPAI's investment basis and other unconsolidated joint venture activity, inclusive of $1,834 of investment-level impairment charges recorded during the nine months ended September 30, 2013 to the carrying value of our Hampton investment, outside basis amortization and activity of our captive insurance plan.
(c)
Refer to page 20 for definition of FFO.

3rd Quarter 2013 Supplemental Information
 
18


Retail Properties of America, Inc.
Unconsolidated Joint Venture Overview and Debt Summary as of September 30, 2013
(dollar amounts and square footage in thousands)


Unconsolidated joint Venture Overview
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At 100%
 
Pro Rata Share
Joint Venture
 
Ownership Interest
 
Number of Properties
 
GLA
 
ABR
 
Debt (a)
 
GLA
 
ABR
 
Debt (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MS Inland
 
20.0
%
 
6

 
1,195

 
$
20,490

 
$
142,771

 
239

 
$
4,098

 
$
28,554

RioCan
 
20.0
%
 
14

(c)
3,129

 
45,186

 
277,026

 
626

 
9,037

 
55,405

 
 
 

 
20

 
4,324

 
$
65,676

 
$
419,797

 
865

 
$
13,135

 
$
83,959


 
Unconsolidated Joint Venture Debt Summary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At 100%
 
Pro Rata Share
 
 
 
 
 
 
Debt (a)
 
Debt (b)
 
WA Interest Rate
 
WA Years to Maturity
Fixed rate:
 
 
 
 

 
 

 
 
Mortgages payable
 
$
315,447

 
$
63,089

 
4.80
%
 
4.8 years
Variable rate:
 
 

 
 

 
 

 
 
Mortgages payable
 
104,350

 
20,870

 
2.49
%
 
0.8 years
Total
 
$
419,797

 
$
83,959

 
4.23
%
 
3.8 years
 


Total Unconsolidated Joint Venture Debt Maturity Schedule as of September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At 100%
 
Pro Rata Share
 
 
 
 
Year
 
Fixed Rate
 
Variable Rate
 
Total (a)
 
Fixed Rate
 
Variable Rate
 
Total (b)
 
% of Total
 
WA Rates on Total Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2013
 
$
342

 
$
—

 
$
342

 
$
68

 
$
—

 
$
68

 
0.1
%
 
5.44
%
2014
 
2,552

 
53,200

 
55,752

 
510

 
10,640

 
11,150

 
13.3
%
 
2.51
%
2015
 
82,003

 
51,150

 
133,153

 
16,401

 
10,230

 
26,631

 
31.7
%
 
4.37
%
2016
 
31,747

 
—

 
31,747

 
6,349

 
—

 
6,349

 
7.5
%
 
3.68
%
2017
 
46,617

 
—

 
46,617

 
9,323

 
—

 
9,323

 
11.1
%
 
4.44
%
2018
 
58,257

 
—

 
58,257

 
11,652

 
—

 
11,652

 
13.9
%
 
4.54
%
2019
 
873

 
—

 
873

 
175

 
—

 
175

 
0.2
%
 
4.85
%
Thereafter
 
93,056

 
—

 
93,056

 
18,611

 
—

 
18,611

 
22.2
%
 
4.93
%
Total
 
$
315,447

 
$
104,350

 
$
419,797

 
$
63,089

 
$
20,870

 
$
83,959

 
100.0
%
 
4.23
%


(a)
Does not include any premium or discount, of which $470 and $(857), net of accumulated amortization, respectively, is outstanding as of September 30, 2013. Amounts are inclusive of balances associated with properties classified as held for sale at 100%.
(b)
Does not include our pro rata share of premium or discount, of which $94 and $(171), net of accumulated amortization, respectively, is outstanding as of September 30, 2013.
(c)
Within various external communications, the RioCan transaction refers to a portfolio of 13 properties. The difference in property count as compared to the table above is due to the aggregation of two phases of one property which we have historically categorized as two separate properties. The October 1, 2013 RioCan transaction, which is discussed in Note 9 of our Form 10-Q for the quarter ended September 30, 2013, dissolved our joint venture arrangement with our partner in RioCan.

3rd Quarter 2013 Supplemental Information
 
19


Retail Properties of America, Inc.
Non-GAAP Financial Measures and Other Definitions


Occupancy
Occupancy is defined, for a property or group of properties, as the ratio, expressed as a percentage, of (a) the number of square feet of such property economically occupied by tenants under leases with an initial term of greater than one year, to (b) the aggregate number of square feet for such property.
Percent Leased Including Signed 
Percent Leased Including Signed is defined, for a property or group of properties, as the ratio, expressed as a percentage, of (a) the sum of occupied square feet (pursuant to the definition above) of such property and vacant square feet for which a lease with an initial term of greater than one year has been signed, but rent has not yet commenced, to (b) the aggregate number of square feet for such property.
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 income (loss) computed in accordance with generally accepted accounting principles (GAAP), excluding gains (or losses) from sales of depreciable investment properties, plus depreciation and amortization and impairment charges on depreciable investment properties, including amounts from continuing and discontinued operations as well as 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 fund cash needs, including the payment of dividends.
Depreciation and amortization related to investment properties for purposes of calculating FFO includes a portion of loss on lease terminations, encompassing the write-off of tenant-related assets, including tenant improvements and in-place lease values, as a result of early lease terminations. 
Operating FFO 
Operating FFO is defined as FFO excluding the impact on earnings from the early extinguishment of debt and other items as denoted within the calculation. 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 fund cash needs, including the payment of 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, amortization of acquired above and below market lease intangibles and lease termination fee income) less property operating expenses (real estate tax expense and property operating expense, excluding straight-line ground rent expense, straight-line bad debt expense and lease termination fee expense). Combined NOI represents NOI plus our pro rata share of NOI from our investment property unconsolidated joint ventures, excluding 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 income (loss) attributable to common shareholders. 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, NOI from Discontinued Operations and Combined NOI from Discontinued Operations 
Same Store NOI for the nine months ended September 30, 2013 represents NOI from our same store portfolio consisting of 232 operating properties acquired or placed in service prior to January 1, 2012, excluding the five operating properties that were classified as held for sale as of September 30, 2013, which are accounted for within discontinued operations. Same Store NOI for the three months ended September 30, 2013 represents NOI from our same store portfolio consisting of 233 operating properties acquired or placed in service prior to July 1, 2012, excluding the five operating properties that were classified as held for sale as of September 30, 2013. NOI from Other Investment Properties for the nine months ended September 30, 2013 represents NOI primarily from our development properties, one former development property that was not classified within our operating property portfolio for both periods presented and University Square due to the continued exploration of strategic alternatives for the property. NOI from Other Investment Properties for the three months ended September 30, 2013 represents NOI primarily from our development properties and University Square. 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. Combined NOI from Discontinued Operations represents NOI from discontinued operations plus our pro rata share of NOI from discontinued operations from our investment property unconsolidated joint ventures. We believe that Same Store NOI, NOI from Other Investment Properties, NOI from Discontinued Operations and Combined NOI from Discontinued Operations are useful measures of our operating performance. Other REITs may use different methodologies for calculating these metrics, and accordingly, our NOI metrics may not be comparable to other REITs. We believe that these metrics provide an operating perspective not immediately apparent from GAAP operating income or net income (loss) attributable to common shareholders. We use these metrics 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.

3rd Quarter 2013 Supplemental Information
 
20


Retail Properties of America, Inc.
Non-GAAP Financial Measures and Other Definitions (continued)


Adjusted EBITDA and Combined Adjusted EBITDA 
Adjusted EBITDA represents net income (loss) attributable to common shareholders 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 (loss) attributable to common shareholders, 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 three months, annualized. 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 three months, annualized. 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.
Net Debt and Preferred Stock to Adjusted EBITDA and Combined Net Debt and Preferred Stock to Combined Adjusted EBITDA 
Net Debt and Preferred Stock to Adjusted EBITDA represents (i) our total debt, plus preferred stock, less cash and cash equivalents divided by (ii) Adjusted EBITDA for the prior three months, annualized. Combined Net Debt and Preferred Stock to Combined Adjusted EBITDA represents (i) the sum of (A) our total debt, plus preferred stock, 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 three months, annualized. We believe that these ratios are useful because they provide investors with information regarding total debt and preferred stock, 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.

3rd Quarter 2013 Supplemental Information
 
21


Retail Properties of America, Inc.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands)
 

Reconciliation of Net Loss Attributable to Common Shareholders to NOI
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2013
 
2012
 
2013
 
2012
Operating revenues:
 
 

 
 

 
 

 
 

Same store investment properties (233 and 232 properties, respectively):
 
 

 
 

 
 

 
 

Rental income
 
$
111,766

 
$
109,436

 
$
331,292

 
$
325,332

Tenant recovery income
 
27,607

 
25,844

 
76,509

 
77,085

Other property income
 
1,857

 
1,793

 
5,418

 
5,667

Other investment properties:
 
 

 
 
 
 

 
 
Rental income
 
645

 
750

 
4,338

 
4,224

Tenant recovery income
 
200

 
199

 
899

 
664

Other property income
 
47

 
53

 
160

 
197

Operating expenses:
 
 

 
 

 
 

 
 

Same store investment properties (233 and 232 properties, respectively):
 
 

 
 

 
 

 
 

Property operating expenses
 
(20,835
)
 
(21,155
)
 
(64,134
)
 
(65,275
)
Real estate taxes
 
(19,489
)
 
(18,199
)
 
(54,138
)
 
(53,047
)
Other investment properties:
 
 

 
 

 
 

 
 

Property operating expenses
 
(318
)
 
(579
)
 
(1,636
)
 
(1,599
)
Real estate taxes
 
(815
)
 
(879
)
 
(2,661
)
 
(3,366
)
 
 
 
 
 
 
 
 
 
Net operating income:
 
 

 
 

 
 

 
 

Same store investment properties
 
100,906

 
97,719

 
294,947

 
289,762

Other investment properties
 
(241
)
 
(456
)
 
1,100

 
120

Total net operating income
 
100,665

 
97,263

 
296,047

 
289,882

 
 
 
 
 
 
 
 
 
Other (expense) income:
 
 

 
 

 
 

 
 

Straight-line rental income, net
 
(142
)
 
421

 
(1,112
)
 
862

Amortization of acquired above and below market lease intangibles, net
 
220

 
254

 
682

 
1,098

Amortization of lease inducements
 
(96
)
 
(13
)
 
(264
)
 
(41
)
Lease termination fees
 
187

 
113

 
1,327

 
1,640

Straight-line ground rent expense
 
(874
)
 
(1,036
)
 
(2,675
)
 
(2,862
)
Depreciation and amortization
 
(53,254
)
 
(53,052
)
 
(168,857
)
 
(159,662
)
Provision for impairment of investment properties
 
(47,784
)
 
—

 
(54,478
)
 
(1,323
)
Loss on lease terminations
 
(221
)
 
(1,689
)
 
(813
)
 
(6,328
)
General and administrative expenses
 
(6,820
)
 
(7,227
)
 
(23,163
)
 
(18,691
)
Gain on extinguishment of debt
 
—

 
—

 
26,331

 
3,879

Equity in income (loss) of unconsolidated joint ventures, net
 
126

 
(1,863
)
 
(736
)
 
(5,467
)
Interest expense
 
(32,381
)
 
(46,244
)
 
(114,449
)
 
(133,001
)
Co-venture obligation expense
 
—

 
—

 
—

 
(3,300
)
Recognized gain on marketable securities
 
—

 
9,108

 
—

 
16,373

Other income, net
 
985

 
1,047

 
4,146

 
1,500

Total other expense
 
(140,054
)
 
(100,181
)
 
(334,061
)
 
(305,323
)
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
(39,389
)
 
(2,918
)
 
(38,014
)
 
(15,441
)
 
 
 
 
 
 
 
 
 
Discontinued operations:
 
 

 
 

 
 

 
 

(Loss) income, net
 
(1,018
)
 
(23,440
)
 
2,111

 
(22,293
)
Gain on sales of investment properties
 
1,705

 
8,756

 
3,640

 
16,518

Income (loss) from discontinued operations
 
687

 
(14,684
)
 
5,751

 
(5,775
)
Gain on sales of investment properties
 
1,150

 
1,650

 
8,802

 
6,652

Net loss
 
(37,552
)
 
(15,952
)
 
(23,461
)
 
(14,564
)
Net loss attributable to the Company
 
(37,552
)
 
(15,952
)
 
(23,461
)
 
(14,564
)
Preferred stock dividends
 
(2,362
)
 
—

 
(7,087
)
 
—

Net loss attributable to common shareholders
 
$
(39,914
)
 
$
(15,952
)
 
$
(30,548
)
 
$
(14,564
)
 
 
 
 
 
 
 
 
 
Net operating income:
 
 

 
 

 
 

 
 

Consolidated NOI
 
$
100,665

 
$
97,263

 
$
296,047

 
$
289,882

Pro rata share of investment property unconsolidated joint ventures NOI (a)
 
3,187

 
3,105

 
9,704

 
9,322

Combined NOI
 
$
103,852

 
$
100,368

 
$
305,751

 
$
299,204



(a)
Amounts shown net of intercompany eliminations.

3rd Quarter 2013 Supplemental Information
 
22


Retail Properties of America, Inc.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands)


Reconciliation of Net (Loss) Income Attributable to Common Shareholders to Adjusted EBITDA and Combined Adjusted EBITDA
 
 
Three Months Ended
 
 
September 30, 2013
 
December 31, 2012
 
 
 
 
 
Net (loss) income attributable to common shareholders
 
$
(39,914
)
 
$
13,854

Preferred stock dividends
 
2,362

 
263

Interest expense
 
32,381

 
42,694

Interest expense (discontinued operations)
 
301

 
2,150

Depreciation and amortization
 
53,254

 
53,379

Depreciation and amortization (discontinued operations)
 
564

 
2,037

Gain on sales of investment properties
 
(1,150
)
 
(1,191
)
Gain on sales of investment properties (discontinued operations)
 
(1,705
)
 
(13,623
)
Loss on lease terminations (a)
 
294

 
458

Provision for impairment of investment properties
 
47,784

 
—

Provision for impairment of investment properties (discontinued operations)
 
2,180

 
2,352

Recognized gain on marketable securities
 
—

 
(9,467
)
Adjusted EBITDA
 
$
96,351

 
$
92,906

Annualized
 
$
385,404

 
$
371,624

 
 
 
 
 
Pro rata share of adjustments from investment property unconsolidated joint ventures (b):
 
 

 
 

Interest expense
 
967

 
937

Depreciation and amortization
 
2,144

 
2,559

Loss on lease terminations (a)
 
1

 
104

Provision for impairment of investment properties
 
—

 
87

Amortization of basis
 
(21
)
 
(27
)
Combined Adjusted EBITDA
 
$
99,442

 
$
96,566

Annualized
 
$
397,768

 
$
386,264



Reconciliation of Operating Income from Discontinued Operations to NOI from Discontinued Operations
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Operating revenues:
 
 
 
 
 
 
 
 
Rental income
 
$
1,463

 
$
9,167

 
$
4,909

 
$
31,117

Tenant recovery income
 
261

 
(89
)
 
846

 
1,902

Other property income
 
11

 
37

 
29

 
62

Operating expenses:
 
 

 
 

 
 

 
 

Property operating expenses
 
(219
)
 
(651
)
 
(827
)
 
(2,321
)
Real estate taxes
 
(229
)
 
78

 
(713
)
 
(1,885
)
Net operating income from discontinued operations
 
1,287

 
8,542

 
4,244

 
28,875

 
 
 
 
 
 
 
 
 
Other income (expense):
 
 

 
 

 
 

 
 

Straight-line rental income, net
 
9

 
24

 
18

 
167

Amortization of acquired above and below market lease intangibles, net
 
12

 
33

 
37

 
111

Amortization of lease inducements
 
—

 
(520
)
 
(14
)
 
(605
)
Lease termination fees
 
700

 
—

 
6,044

 
25

Depreciation and amortization
 
(564
)
 
(4,427
)
 
(2,425
)
 
(14,727
)
Provision for impairment of investment properties
 
(2,180
)
 
(22,167
)
 
(4,662
)
 
(22,167
)
Loss on lease terminations
 
—

 
—

 
—

 
(262
)
Interest expense
 
(301
)
 
(4,921
)
 
(1,184
)
 
(13,706
)
Other income (expense), net
 
19

 
(4
)
 
53

 
(4
)
Total other expense
 
(2,305
)
 
(31,982
)
 
(2,133
)
 
(51,168
)
 
 
 
 
 
 
 
 
 
Operating (loss) income from discontinued operations
 
$
(1,018
)
 
$
(23,440
)
 
$
2,111

 
$
(22,293
)
 
 
 
 
 
 
 
 
 
NOI from discontinued operations
 
 

 
 

 
 

 
 

Consolidated
 
$
1,287

 
$
8,542

 
$
4,244

 
$
28,875

Pro rata share of investment property unconsolidated joint ventures (b)
 
—

 
286

 
341

 
739

Combined NOI from discontinued operations
 
$
1,287

 
$
8,828

 
$
4,585

 
$
29,614



(a)
Loss on lease terminations in the EBITDA reconciliation above excludes the write-off of tenant-related above and below market lease intangibles and lease inducements that are otherwise included in "Loss on lease terminations" in the condensed consolidated statements of operations.
(b)
Amounts shown net of intercompany eliminations.

3rd Quarter 2013 Supplemental Information
 
23


Retail Properties of America, Inc.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands)


Reconciliation of Pro Rata Share of Net Income (Loss) to NOI from Investment Property Unconsolidated Joint Ventures
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2013
 
2012
 
2013
 
2012
Operating revenues:
 
 
 
 
 
 
 
 
Same store investment properties (6 properties):
 
 

 
 

 
 

 
 

Rental income
 
$
1,034

 
$
990

 
$
3,083

 
$
2,967

Tenant recovery income
 
351

 
345

 
1,054

 
1,103

Other property income
 
5

 
9

 
17

 
26

Other investment properties:
 
 
 
 
 
 
 
 
Rental income
 
2,252

 
2,235

 
6,767

 
6,642

Tenant recovery income
 
729

 
706

 
2,248

 
2,142

Other property income
 
4

 
3

 
14

 
14

Discontinued operations properties:
 
 

 
 

 
 

 
 

Rental income
 
—

 
300

 
335

 
919

Tenant recovery income
 
—

 
90

 
124

 
236

Operating expenses:
 
 

 
 

 
 

 
 

Same store investment properties (6 properties):
 
 

 
 

 
 

 
 

Property operating expenses
 
(130
)
 
(134
)
 
(367
)
 
(421
)
Real estate taxes
 
(254
)
 
(257
)
 
(787
)
 
(812
)
Other investment properties:
 
 
 
 
 
 
 
 
Property operating expenses
 
(281
)
 
(313
)
 
(832
)
 
(921
)
Real estate taxes
 
(523
)
 
(479
)
 
(1,493
)
 
(1,418
)
Discontinued operations properties:
 
 

 
 

 
 

 
 

Property operating expenses
 
—

 
(54
)
 
(60
)
 
(209
)
Real estate taxes
 
—

 
(50
)
 
(58
)
 
(207
)
 
 
 
 
 
 
 
 
 
Net operating income:
 
 

 
 

 
 

 
 

Same store investment properties
 
1,006

 
953

 
3,000

 
2,863

Other investment properties
 
2,181

 
2,152

 
6,704

 
6,459

Discontinued operations properties
 
—

 
286

 
341

 
739

Total net operating income
 
3,187

 
3,391

 
10,045

 
10,061

 
 
 
 
 
 
 
 
 
Other (expense) income from continuing operations:
 
 

 
 

 
 

 
 

Straight-line rental income, net
 
41

 
32

 
154

 
172

Amortization of acquired above and below market lease intangibles, net
 
(17
)
 
(19
)
 
(54
)
 
(47
)
Amortization of lease inducements
 
(10
)
 
—

 
(29
)
 
(1
)
Lease termination fees
 
—

 
—

 
49

 
(120
)
Depreciation and amortization
 
(2,144
)
 
(2,464
)
 
(6,648
)
 
(7,490
)
Loss on lease terminations
 
3

 
(187
)
 
(178
)
 
(391
)
General and administrative expenses
 
(41
)
 
(69
)
 
(122
)
 
(238
)
Interest expense, net
 
(967
)
 
(974
)
 
(1,286
)
 
(3,006
)
Other income (expense), net
 
401

 
(27
)
 
404

 
(2
)
Total other expense
 
(2,734
)
 
(3,708
)
 
(7,710
)
 
(11,123
)
 
 
 
 
 
 
 
 
 
Other expense from discontinued operations, net
 
—

 
(210
)
 
(437
)
 
(2,054
)
 
 
 
 
 
 
 
 
 
Gain on sales of investment properties, net
 
—

 
—

 
977

 
—

 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
453

 
$
(527
)
 
$
2,875

 
$
(3,116
)


3rd Quarter 2013 Supplemental Information
 
24