RPT Realty Completes $123.0 Million of Dispositions in 2018
NEW YORK, Jan. 03, 2019 (GLOBE NEWSWIRE) -- RPT Realty (“RPT” or the “Company”) (NYSE: RPT) today announced that it completed six dispositions with an aggregate sale price of $123.0 million in 2018, with all the closings occurring in the fourth quarter. All of the disposed properties were located in tertiary markets outside the top-90 national MSAs (“Metropolitan Statistical Area”) and these completed sales are expected to improve RPT’s NOI growth metrics, occupancy, demographic profile, and annualized base rent (“ABR”) per square foot. The Company used the proceeds from the dispositions primarily to reduce leverage and ended the year with no amounts outstanding on its revolving credit facility. The dispositions were completed within RPT’s targeted weighted average cap rate range of 8-9% for its open-air shopping centers (excluding the sale of Jackson Crossing, previously the Company’s only enclosed regional mall). RPT now expects to complete its $150 - $200 million disposition program by the end of the second quarter of 2019.
“We were very pleased to end 2018 by selling the majority of our bottom-tier properties while significantly strengthening our balance sheet, portfolio quality and consistency of our cash flows,” said Brian Harper, President and Chief Executive Officer of RPT Realty. “As we look ahead to 2019, we are maintaining our sense of urgency as we seek to execute on our stated strategy to create shareholder value. Our top priorities will continue to be to reduce our exposure to non-core, tertiary markets, lower leverage, grow small-shop occupancy, opportunistically add scale and pursue value-add densification opportunities in our core markets.”
# Completed $123.0 million of dispositions, which included the sale of six non-core properties in markets outside the top-90 national MSAs: ° Harvest Junction North and Harvest Junction South in Longmont, CO (MSA: 155); ° Jackson Crossing and Jackson West in Jackson, MI (MSA: 261); and, ° Rossford Pointe and Crossroads Centre in Toledo, OH (MSA: 92). # Weighted average ABR per occupied square foot of $12.44; and, # Weighted average household income of $71,000 and weighted average population of 53,000 within a three-mile radius.
About RPT Realty 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. For additional information about the Company please visit rptrealty.com.
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