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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

RPT Realty Reports First Quarter 2019 Results; Raises Full Year 2019 Outlook

May 1, 2019

NEW YORK, May 01, 2019 (GLOBE NEWSWIRE) -- RPT Realty (NYSE:RPT) (the “Company”) today announced its financial and operating results for the quarter ended March 31, 2019.

FIRST QUARTER 2019 HIGHLIGHTS

-- First quarter net income attributable to common shareholders of $8.8 million or $0.11 per diluted share. -- First quarter Nareit-defined Funds from Operations (“FFO”) of $0.27 per diluted share and Operating Funds from Operations (“Operating FFO”) of $0.27 per diluted share. -- Same property net operating income (“Same property NOI”) increased 4.6% in the first quarter as compared to the same period in the prior year, driven by a 4.2% increase in base rent. -- Rents on comparable new and renewal leases signed in the first quarter increased 16.7%. -- As of March 31, 2019, the consolidated portfolio leased rate was 94.8%, up 50 basis points sequentially and up 120 basis points year-over-year. -- As of March 31, 2019, spaces less than 10,000 square feet (“Small Shop”) were 89.6% leased, up 80 basis points sequentially and up 290 basis points year-over-year. -- As of March 31, 2019, the Company had $5.8 million of signed not commenced Annualized Base Rent (“ABR”), up $1.0 million sequentially, that is scheduled to commence over the next twelve months. -- During the first quarter, the Company completed its strategic disposition program with the sale of two non-core properties for an aggregate sales price of $68.5 million. -- As of March 31, 2019, the Company had liquidity of $435 million, including full capacity on its $350 million unsecured revolving credit facility and $85 million in cash and cash equivalents. -- On April 29, 2019, the Company’s Board of Trustees (“Board”) declared a second quarter 2019 regular cash dividend of $0.22 per common share.

“Since last summer, RPT has taken a series of steps, both large and small, to lay the foundation for consistent and sustainable growth for our shareholders,” said Brian Harper, President and Chief Executive Officer. “We have strengthened our cash flows, optimized liquidity, reengineered our operating platform and refreshed our Board of Trustees. These critical building blocks are beginning to yield success as shown by our strong quarterly results including same property NOI growth of 4.6% that was fueled by a 4.2% increase in base rent, blended re-leasing spreads of 17% and a small shop leased rate now approaching 90%. As we look towards the remainder of 2019, we have raised the midpoint of our 2019 same property NOI growth assumption by 25 basis points to 2.75% as a result of our above-plan quarterly performance and continued leasing momentum with our 2019 leasing plan currently over 85% signed and scheduled to commence rent by the end of 2019.”

FINANCIAL RESULTS

Net income attributable to common shareholders for the first quarter 2019 of $8.8 million, or $0.11 per diluted share, compared to $5.6 million, or $0.07 per diluted share for the same period in 2018.

FFO for the first quarter 2019 of $24.1 million, or $0.27 per diluted share, compared to $28.6 million, or $0.32 per diluted share for the same period in 2018. The change in FFO was primarily driven by the Company’s non-core asset disposition program.

Operating FFO for the first quarter 2019 of $24.0 million, or $0.27 per diluted share, compared to $28.6 million or $0.32 per diluted share for the same period in 2018. Operating FFO for the first quarter 2019 excludes certain net non-recurring gains that totaled $0.2 million, primarily attributable to a mark-to-market performance award benefit related to the Company’s former chief executive officer. The change in Operating FFO was primarily driven by the Company’s non-core asset disposition program.

OPERATING RESULTS

Same property NOI during the first quarter 2019 increased 4.6% compared to the same period in 2018. Same property NOI growth for the quarter was primarily driven by higher base rent of 4.2%.

During the first quarter 2019, the Company signed 60 leases totaling 482,939 square feet. Blended re-leasing spreads on comparable leases were 16.7% with an ABR of $18.36 per square foot. Re-leasing spreads on comparable new and renewal leases were 41.6% and 12.2%, respectively.

The table below summarizes the Company’s leased rate and occupancy results at March 31, 2019, December 31, 2018, and March 31, 2018.

March 31, 2019 December 31, 2018 March 31, 2018 ------------------------------------------------ -------------- ----------------- -------------- Consolidated Portfolio Leased rate 94.8% 94.3% 93.6% Occupancy 91.8% 91.7% 91.6% Anchor (GLA of 10,000 square feet or more) Leased rate 97.1% 96.6% 96.4% Occupancy 94.7% 94.6% 94.6% Small Shop (GLA of less than 10,000 square feet) Leased rate 89.6% 88.8% 86.7% Occupancy 85.0% 84.7% 84.1% ------------------------------------------------ -------------- ----------------- --------------

BALANCE SHEET

The Company ended the first quarter 2019 with liquidity of $434.9 million, including $85.0 million in cash and cash equivalents and $349.8 million of availability on its unsecured revolving credit facility. At March 31, 2019, the Company had approximately $963.4 million of consolidated debt and finance lease obligations, which resulted in a net debt to annualized proforma adjusted EBITDA ratio of 6.6x. Consolidated debt had a weighted average interest rate of 4.13% and a weighted average maturity, excluding scheduled amortization, of 5.5 years.

DISPOSITIONS

During the quarter, as previously-announced, the Company completed the sale of two non-core properties for an aggregate sales price of $68.5 million. With the sale of these two assets, the Company now generates over 96% of its annualized base rent from the top 40 Metropolitan Statistical Areas (MSA) and has completed its strategic disposition program almost a year ahead of plan, significantly improving the Company’s internal growth profile, while reducing cash flow risk.

The weighted average ABR per square foot, the weighted average 3-mile household income and population for the properties sold were $13.98, $77,000, and 57,000, respectively.

BOARD REFRESHMENT

On April 29, 2019, Joanna Lau, an expert in the technology and retail industries, was elected to the Company’s Board. Since September 2018, the Company has elected three new Trustees who diversify and complement the experience and backgrounds of the existing Board, while bringing the independent Board membership into gender balance. With the retirement of three Trustees at this year’s Annual Shareholder meeting, the average tenure of the Board has decreased to 6 years from 18 years as of the second quarter 2018.

DIVIDEND

On April 29, 2019, the Company’s Board of Trustees declared a second quarter 2019 regular cash dividend of $0.22 per common share. The Board of Trustees also approved a second quarter 2019 Series D convertible preferred share dividend of $0.90625 per share. The dividends for the period April 1, 2019 through June 30, 2019 are payable on July 1, 2019 for shareholders of record on June 20, 2019.

2019 GUIDANCE

The Company’s previously-provided 2019 earnings guidance has been updated as shown in the table below.

Guidance item Prior 2019 Guidance Range Updated 2019 Guidance Range 1Q YTD 2019 --------------------------------------- ----- Net income per common share (diluted) $0.12 to $0.16 $0.16 to $0.19 $0.11 $0.11 Same property NOI growth 2.00% to 3.00% 2.25% to 3.25% 4.6% 4.6% General and administrative expenses (in $23.75 to $25.00 $23.75 to $25.00 $6.2 $6.2 millions)1 Dispositions (in millions) ~$68.5 $68.5 $68.5 $68.5 Operating FFO per diluted share $1.03 to $1.07 $1.04 to $1.07 $0.27 $0.27 --------------------------------------- ------ -- ------ ------- ------ -- ------ --------- ----- ----- 1Excludes the impact of non-recurring executive transition and employee severance charges and gains as noted in the Reconciliation of Non-GAAP Measures Funds from Operations section of the release

CHANGES TO FINANCIAL STATEMENT PRESENTATION

On January 1, 2019, the Company adopted the accounting framework for leases in ASU No. 2016-02, Leases (“Topic 842”). Changes to the Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets made in accordance with the transition guidance included in Topic 842 are as follows:

-- All tenant related leasing income is aggregated into a single line item titled Rental income. This change is included in the 2019 and 2018 reporting periods. -- Bad debt expense is included in Rental income as a contra revenue item and is no longer part of Non-recoverable operating expense. No retrospective application has been made to 2018. -- Real estate taxes paid directly by tenants to the taxing authority are no longer included in Rental income and Real estate tax expense. No retrospective application has been made to 2018. -- The Company’s reported Net income, Net operating income, EBITDAre, adjusted EBITDA, FFO, and Operating FFO are unaffected by these changes. -- Operating leases are to be recorded on our condensed consolidated balance sheets as Operating lease right-of-use assets and Operating lease liabilities. No retrospective application has been made to 2018.

Additional Rental income details are provided for comparability purposes in the Consolidated Statements of Operations Detail section of the Company’s quarterly supplemental.

CONFERENCE CALL/WEBCAST:

The Company will host a live broadcast of its first quarter 2019 conference call on Thursday, May 2, 2019 at 9:00 a.m. (ET) to discuss its financial and operating results.

Date: Thursday, May 2, 2019 Time: 9:00 a.m. ET Dial in #: (877) 705-6003 International Dial in # (201) 493-6725 Webcast: investors.rptrealty.com

A replay of the call will be available through May 9, 2019. The replay can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers and entering passcode 13688156. A replay will also be archived on the Company’s website for twelve months.

SUPPLEMENTAL MATERIALS

The Company’s quarterly financial and operating supplement is available on its corporate web site at rptrealty.com. If you wish to receive a copy via email, please send requests to invest@rptrealty.com.

RPT Realty owns and operates a national portfolio of open-air shopping destinations principally located in top U.S. markets. The Company’s locally-curated consumer experiences reflect the lifestyles of its diverse neighborhoods and match the modern expectations of its retail partners. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange under the ticker symbol RPT. As of March 31, 2019, the Company’s portfolio consisted of 49 shopping centers (including 1 shopping center owned through a joint venture) representing 11.9 million square feet. As of March 31, 2019, the Company’s aggregate portfolio was 94.8% leased. For additional information about the Company please visit rptrealty.com.

This press release may contain forward-looking statements that represent the Company’s expectations and projections for the future. Management of the Company believes the expectations reflected in any forward-looking statements made in this press release are based on reasonable assumptions. Certain factors could occur that might cause actual results to vary, including deterioration in national economic conditions, weakening of real estate markets, decreases in the availability of credit, increases in interest rates, adverse changes in the retail industry, our continuing ability to qualify as a REIT and other factors discussed in the Company’s reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date hereof and the Company expressly disclaims any obligation to update any forward-looking statements.

Company Contact:Vin Chao, Vice President - Finance19 W 44th St. 10th Floor, Ste 1002New York, New York 10036vchao@rptrealty.com(212) 221-1752

RPT REALTYFFO AND OPERATING FFO ATTRIBUTABLE TO COMMON AND OP UNIT HOLDERS GUIDANCE

Per Share Guidance Range Full Year 2019 Low High ------ -- ------ Net income available to common shareholders $0.16 to $0.19 Depreciation and amortization 0.87 to 0.87 Convertible preferred dividend 0.08 to 0.08 Net income attributable to noncontrolling interests 0.01 to 0.01 Share count adjustment1 (0.02) to (0.02) (Gain)/Loss on sale of investment properties (0.06) to (0.06) FFO and OFFO available to common shareholders and dilutive securities $1.04 to $1.07 ------ -- ------ 1OP Units and Convertible Preferred shares are excluded from the diluted share count for Net Income, but included for FFO and OFFO

RPT REALTY CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) March 31, December 31, 2019 2018 (unaudited) ------------- ------------- ASSETS Income producing properties, at cost: Land $ 361,973 $ 373,490 Buildings and improvements 1,598,812 1,652,283 Less accumulated depreciation and amortization (352,074) (358,195) ------------ ------------ Income producing properties, net 1,608,711 1,667,578 Construction in progress and land available for development 47,799 53,222 Net real estate 1,656,510 1,720,800 Equity investments in unconsolidated joint ventures 1,606 1,572 Cash and cash equivalents 85,016 41,064 Restricted cash and escrows 3,297 3,658 Accounts receivable, net 26,671 23,802 Acquired lease intangibles, net 40,802 44,432 Operating lease right-of-use assets 17,698 — Other assets, net 90,451 93,112 TOTAL ASSETS $ 1,922,051 $ 1,928,440 -- --------- -- --------- LIABILITIES AND SHAREHOLDERS’ EQUITY Notes payable, net $ 962,433 $ 963,149 Finance lease obligation 975 975 Accounts payable and accrued expenses 47,526 56,355 Distributions payable 19,772 19,728 Acquired lease intangibles, net 46,321 48,647 Operating lease liabilities 16,403 — Other liabilities 6,830 8,043 TOTAL LIABILITIES 1,100,260 1,096,897 ------------ ------------ Commitments and Contingencies RPT Realty (“RPT”) Shareholders’ Equity: Preferred shares, $0.01 par, 2,000 shares authorized: 7.25% Series D Cumulative Convertible Perpetual Preferred Shares, (stated at liquidation preference $50 per share), 1,849 shares 92,427 92,427 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively Common shares of beneficial interest, $0.01 par, 120,000 shares authorized, 79,757 and 79,734 shares 798 797 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively Additional paid-in capital 1,166,048 1,164,848 Accumulated distributions in excess of net income (459,365) (450,130) Accumulated other comprehensive income 2,517 4,020 ------------ ------------ TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO RPT 802,425 811,962 Noncontrolling interest 19,366 19,581 ------------ ------------ TOTAL SHAREHOLDERS’ EQUITY 821,791 831,543 ------------ TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,922,051 $ 1,928,440 -- --------- -- ---------

RPT REALTY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (unaudited) Three Months Ended March 31, -------------------------- 2019 2018 -------------- ---------- REVENUE Rental income $ 58,358 $ 61,818 Other property income 1,299 814 Management and other fee income 51 86 ------------- --------- TOTAL REVENUE 59,708 62,718 ------------- --------- EXPENSES Real estate tax expense 9,822 10,157 Recoverable operating expense 6,681 6,806 Non-recoverable operating expense 2,490 1,712 Depreciation and amortization 19,219 21,112 General and administrative expense 6,066 5,176 TOTAL EXPENSES 44,278 44,963 ------------- --------- OPERATING INCOME 15,430 17,755 OTHER INCOME AND EXPENSES Other (expense) income, net (108) 253 Gain on sale of real estate 5,702 — Earnings from unconsolidated joint ventures 54 71 Interest expense (10,349) (10,601) INCOME BEFORE TAX 10,729 7,478 Income tax provision (36) (18) ------------- --------- NET INCOME 10,693 7,460 Net income attributable to noncontrolling partner interest (250) (174) ------------- --------- NET INCOME ATTRIBUTABLE TO RPT 10,443 7,286 Preferred share dividends (1,675) (1,675) NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 8,768 $ 5,611 ------ ------ -- ------ EARNINGS PER COMMON SHARE Basic $ 0.11 $ 0.07 ------ ------ -- ------ Diluted $ 0.11 $ 0.07 ------ ------ -- ------ WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic 79,744 79,423 ------------- --------- Diluted 79,931 79,570 ------------- ---------

RPT REALTY RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FUNDS FROM OPERATIONS (In thousands, except per share data) (unaudited) Three Months Ended March 31, -------------------------- 2019 2018 -------------- ---------- Net income $ 10,693 $ 7,460 Net income attributable to noncontrolling partner interest (250) (174) Preferred share dividends (1,675) (1,675) Net income available to common shareholders 8,768 5,611 Adjustments: Rental property depreciation and amortization expense 19,122 21,050 Pro-rata share of real estate depreciation from unconsolidated joint ventures 14 72 Gain on sale of depreciable real estate (5,702) — --------- FFO available to common shareholders 22,202 26,733 Noncontrolling interest in Operating Partnership (1) 250 174 Preferred share dividends (assuming conversion)(2) 1,675 1,675 ------------- --------- FFO available to common shareholders and dilutive securities $ 24,127 $ 28,582 Severance expense (3) 98 14 Executive management reorganization, net (3)(4) (252) 419 Other gain — (398) ------------- --------- Operating FFO available to common shareholders and dilutive securities $ 23,973 $ 28,617 ------ ------ -- ------ Weighted average common shares 79,744 79,423 Shares issuable upon conversion of Operating Partnership Units (1) 1,909 1,916 Dilutive effect of restricted stock 187 147 Shares issuable upon conversion of preferred shares (2) 6,891 6,772 ------------- --------- Weighted average equivalent shares outstanding, diluted 88,731 88,258 ------------- --------- FFO available to common shareholders and dilutive securities per share, diluted $ 0.27 $ 0.32 ------ ------ -- ------ Operating FFO available to common shareholders and dilutive securities per share, $ 0.27 $ 0.32 diluted ------ ------ -- ------ Dividend per common share $ 0.22 $ 0.22 Payout ratio - Operating FFO 81.5% 68.8% --------------------------------------------------------------------------------- ------ ------ -- ------

(1) The total noncontrolling interest reflects OP units convertible 1:1 into common shares. Series D convertible preferred shares are paid annual dividends of $6.7 million and are currently convertible into approximately 6.9 million shares of common stock. They are dilutive only when earnings (2) or FFO exceed approximately $0.24 per diluted share per quarter and $0.97 per diluted share per year. The conversion ratio is subject to adjustment based upon a number of factors, and such adjustment could affect the dilutive impact of the Series D convertible preferred shares on FFO and earning per share in future periods. (3) Amounts noted are included in General and Administrative expense on the Consolidated Statements of Operations (4) 1Q19 is largely comprised of a performance award benefit related to the Company’s former chief executive officer and 1Q18 is largely comprised of recruiting fees.

RPT REALTY RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (amounts in thousands) (unaudited) Reconciliation of net income available to common shareholders to Same Property NOI Three Months Ended March 31, ---------------------------- 2019 2018 -------------- ------------ Net income available to common shareholders $ 8,768 $ 5,611 Preferred share dividends 1,675 1,675 Net income attributable to noncontrolling partner interest 250 174 Income tax provision 36 18 Interest expense 10,349 10,601 Earnings from unconsolidated joint ventures (54) (71) Gain on sale of real estate (5,702) — Other (expense) income, net 108 (253) Management and other fee income (51) (86) Depreciation and amortization 19,219 21,112 General and administrative expenses 6,066 5,176 Lease termination fees (149) — Amortization of lease inducements 96 43 Amortization of acquired above and below market lease intangibles, net (909) (1,122) Straight-line ground rent expense 77 76 Straight-line rental income (810) (878) ------------- --------- -- NOI 38,969 42,076 NOI from Other Investments (200) (4,999) Same Property NOI $ 38,769 $ 37,077 ---------------------------------------------------------------------- -------------- ------------

RPT REALTY RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (amounts in thousands) (unaudited) Three Months Ended March 31, -------------------------------- Reconciliation of net income to annualized proforma adjusted EBITDA 2019 2018 ---------------- -------------- Net income $ 10,693 $ 7,460 Interest expense 10,349 10,601 Income tax provision 36 18 Depreciation and amortization 19,219 21,112 Gain on sale of depreciable real estate (5,702) — Pro-rata adjustments from unconsolidated entities 14 72 -------------- - EBITDAre 34,609 39,263 Severance expense 98 14 Executive management organization, net (252) 419 Other gain — (398) -------------- - ------------ - Adjusted EBITDA 34,455 39,298 Proforma adjustments (1) (1,058) 314 -------------- - ------------ - Proforma adjusted EBITDA $ 33,397 $ 39,612 Annualized proforma adjusted EBITDA $ 133,588 $ 158,448 ------ ------- - -- --------- - Reconciliation of Notes Payable, net to Net Debt Notes payable, net $ 962,433 $ 1,023,488 Unamortized premium (2,706) (3,707) Deferred financing costs, net 2,878 3,646 -------------- - ------------ - Consolidated notional debt 962,605 1,023,427 Pro-rata share of debt from unconsolidated joint venture — 12,699 Finance lease obligation 975 1,022 Cash and cash equivalents (85,016) (10,315) -------------- - ------------ - Net debt $ 878,564 $ 1,026,833 ------ ------- - -- --------- - Reconciliation of interest expense to total fixed charges Interest expense $ 10,349 $ 10,601 Preferred share dividends 1,675 1,675 Scheduled mortgage principal payments 654 642 -------------- - ------------ - Total fixed charges $ 12,678 $ 12,918 ------ ------- - -- --------- - Net debt to annualized proforma adjusted EBITDA 6.6 x 6.5 x Interest coverage ratio (proforma adjusted EBITDA / interest expense) 3.2 x 3.7 x Fixed charge coverage ratio (proforma adjusted EBITDA / fixed charges) 2.6 x 3.0 x ---------------------------------------------------------------------- ---------------- --------------

1Q19 excludes $1.1 million from dispositions and 1Q18 includes $0.3 million from our Millennium Park (1) joint venture. The proforma adjustments treat the activity as if they occurred at the start of each quarter.

RPT RealtyNon-GAAP Financial Definitions

Certain of our key performance indicators are considered non-GAAP financial measures. Management uses these measures along with our GAAP financial statements in order to evaluate our operations results. We believe these additional measures provide users of our financial information additional comparable indicators of our industry, as well as our performance.

Funds From Operations (FFO) Available to Common ShareholdersAs defined by the National Association of Real Estate Investment Trusts (NAREIT), Funds From Operations (FFO) represents net income computed in accordance with generally accepted accounting principles, excluding gains (or losses) from sales of depreciable property and impairment provisions on depreciable real estate or on investments in non-consolidated investees that are driven by measurable decreases in the fair value of depreciable real estate held by the investee, plus depreciation and amortization, (excluding amortization of financing costs). Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis. We have adopted the NAREIT definition in our computation of FFO available to common shareholders.

Operating FFO Available to Common ShareholdersIn addition to FFO available to common shareholders, we include Operating FFO available to common shareholders as an additional measure of our financial and operating performance. Operating FFO excludes acquisition costs and periodic items such as gains (or losses) from sales of land and impairment provisions on land available for development or sale, bargain purchase gains, severance expense, executive management reorganization costs, net, accelerated amortization of debt premiums and gains or losses on extinguishment of debt that are not adjusted under the current NAREIT definition of FFO. We provide a reconciliation of FFO to Operating FFO. FFO and Operating FFO should not be considered alternatives to GAAP net income available to common shareholders or as alternatives to cash flow as measures of liquidity.

While we consider FFO available to common shareholders and Operating FFO available to common shareholders useful measures for reviewing our comparative operating and financial performance between periods or to compare our performance to different REITs, our computations of FFO and Operating FFO may differ from the computations utilized by other real estate companies, and therefore, may not be comparable. We recognize the limitations of FFO and Operating FFO when compared to GAAP net income available to common shareholders. FFO and Operating FFO available to common shareholders do not represent amounts available for needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. In addition, FFO and Operating FFO do not represent cash generated from operating activities in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs, including the payment of dividends. FFO and Operating FFO are simply used as for reviewing our comparative operating and financial performance between periods or to compare our performance to different REITs, our computations of FFO and Operating FFO may differ from the computations utilized by other real estate companies, and therefore, may not be comparable.

Net Operating Income (NOI)Net Operating Income (NOI) is calculated using consolidated net income available to common shareholders and adjusted to exclude preferred share dividends, net income/loss attributable to noncontrolling partner interest, income tax provisions, interest expense and other associated debt costs, earnings from unconsolidated joint ventures, management and other fee income, depreciation and amortization, acquisition costs, general and administrative expenses, provisions for impairments, lease termination fees, straight-line rent/expense, amortization of above/below market rent and lease inducements. NOI consists of Same Property NOI and NOI from Other Investment Properties.

Same Property NOI and NOI from Other InvestmentsSame Property NOI and NOI from Other Investments are supplemental non-GAAP financial measures of real estate companies’ operating performance. Same Property NOI is considered by management to be a relevant performance measure of our operations because it includes only the NOI of comparable consolidated operating properties for the reporting period. Same Property NOI for the three months ended March 31, 2019 represents NOI from the Company’s same property portfolio consisting of 46 consolidated operating properties acquired or placed in service and stabilized prior to January 1, 2018. Same Property NOI excludes properties under redevelopment or where activities have started in preparation for redevelopment. A property is designated as a redevelopment when planned improvements significantly impact the property. Same Property NOI is calculated using consolidated operating income and adjusted to exclude management and other fee income, depreciation and amortization, general and administrative expense, provision for impairment and non-comparable income and expense adjustments such as straight-line rents, lease termination fees, above/below market rents, and other non-comparable operating income and expense adjustments. NOI from Other Investments for the three months ended March 31, 2019 and 2018 represents NOI primarily from (i) properties disposed of during 2018 and 2019, (ii) Webster Place and Rivertowne Square where the Company has begun activities in anticipation of future redevelopment, (iii) certain property related employee compensation and benefits expense and (iv) non-comparable operating income and expense adjustments.

Same Property NOI and NOI from Other Investments should not be considered an alternative to net income in accordance with GAAP or as a measure of liquidity. Our method of calculating Same Property NOI and NOI from Other Investments may differ from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

EBITDAre/Adjusted EBITDA/Proforma Adjusted EBITDANAREIT defines EBITDAre as net income computed in accordance with GAAP, plus interest expense, income tax expense (benefit), depreciation and amortization and impairment of depreciable real estate and in substance real estate equity investments; plus or minus gains or losses from sales of operating real estate assets and interests in real estate equity investments; and adjustments to reflect our share of unconsolidated real estate joint ventures and partnerships for these items. The Company calculates EBITDAre in a manner consistent with the NAREIT definition. The Company also presents Adjusted EBITDA which is EBITDAre net of severance expense and other non-recurring items. EBITDAre and Adjusted EBITDA should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. Proforma Adjusted EBITDA further adjusts for the effect of the acquisition or disposition of properties during the period.

OccupancyOccupancy 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.

Leased RateLease Rate 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 occupied by tenants at the time the lease was executed with an initial term of greater than one year, to (b) the aggregate number of square feet for such property.

Metropolitan Statistical Area (MSA)Metropolitan Statistical Area (MSA) information is sourced from the United States Census Bureau and rank is determined based on the most recently available population estimates.