Retail Properties Of America, Inc. Reports Second Quarter Results

Retail Properties of America, Inc. (NYSE: RPAI) today reported financial and operating results for the quarter and six months ended June 30, 2013.

FINANCIAL RESULTS

For the quarter ended June 30, 2013, Retail Properties of America, Inc. reported:
  • Operating Funds From Operations (Operating FFO) of $60.6 million, or $0.26 per share, compared to $51.5 million, or $0.23 per share, for the same period in 2012;
  • Funds From Operations (FFO) of $88.2 million, or $0.38 per share, compared to $70.2 million, or $0.31 per share, for the same period in 2012;
  • Net income attributable to common shareholders of $13.6 million, or $0.06 per share, compared to $17.7 million, or $0.08 per share, for the same period in 2012;
  • Results for the quarter ended June 30, 2013 included $5.5 million of income attributable to settlement proceeds received from the Mervyns bankruptcy.

For the six months ended June 30, 2013, the Company reported:
  • Operating FFO of $112.8 million, or $0.49 per share, compared to $100.8 million, or $0.48 per share, for the same period in 2012;
  • FFO of $131.4 million, or $0.57 per share, compared to $118.6 million, or $0.56 per share, for the same period in 2012;
  • Net income attributable to common shareholders of $9.4 million, or $0.04 per share, compared to $1.4 million, or $0.01 per share, for the same period in 2012;
  • Results for the six months ended June 30, 2013 included $5.5 million of income attributable to settlement proceeds received from the Mervyns bankruptcy, as noted above.

OPERATING RESULTS

For the quarter ended June 30, 2013, the Company’s results for its consolidated portfolio were as follows:
  • 1.5% increase in total same store net operating income (NOI) over the comparable period in 2012, based on same store occupancy of 92.1% at June 30, 2013, up 70 basis points from 91.4% at March 31, 2013 and up 160 basis points from 90.5% at June 30, 2012;
  • Total portfolio percent leased, including leases signed but not commenced: 93.4% at June 30, 2013, up 70 basis points from 92.7% at March 31, 2013 and up 180 basis points from 91.6% at June 30, 2012;
  • Retail portfolio percent leased, including leases signed but not commenced: 93.0% at June 30, 2013, up 80 basis points from 92.2% at March 31, 2013 and up 200 basis points from 91.0% at June 30, 2012;
  • 1,344,000 square feet of retail leasing transactions, including the Company’s pro rata share of unconsolidated joint ventures, comprised of 257 new and renewal leases; and,
  • Positive comparable cash leasing spreads, including the Company’s pro rata share of unconsolidated joint ventures, of 4.8%.

“We are pleased to report another solid quarter of financial and operational results, with strong leasing velocity translating into sizable occupancy gains and continued positive releasing spreads,” stated Steve Grimes, president and chief executive officer. “Our sustained focus on small shop leasing resulted in an improvement in our small shop leased rate of 100 basis points during the quarter, which bodes well for our ability to drive NOI growth over the next twelve months.”

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