|Bid||5.90 x 900|
|Ask||6.60 x 1300|
|Day's Range||6.09 - 6.36|
|52 Week Range||4.62 - 15.18|
|Beta (5Y Monthly)||1.26|
|PE Ratio (TTM)||7.39|
|Earnings Date||Oct. 28, 2020 - Nov. 02, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Mar. 19, 2020|
|1y Target Est||6.70|
* Net (loss) income attributable to common shareholders for the second quarter 2020 of $(4.6) million, or $(0.06) per diluted share, compared to $1.2 million, or $0.01 per diluted share for the same period in 2019. * 92% of total tenants were open and operating, as of July 31, 2020, based on annualized base rent ("ABR"). * 75% of July and 65% of second quarter 2020 rents have been paid to date. * 18% of July and 24% of second quarter 2020 rents are subject to signed or approved deferral agreements to date. * Continued temporary suspension of payment of the common dividend. Decisions regarding future dividend payments will be made quarterly based on liquidity needs and REIT taxable income distribution requirements.NEW YORK, Aug. 04, 2020 (GLOBE NEWSWIRE) -- RPT Realty (NYSE:RPT) (the "Company") today announced its financial and operating results for the quarter ended June 30, 2020."During these unprecedented times, our operating platform continues to reflect our active hands-on approach and strong tenant relationships," said Brian Harper, President and CEO. “92% of our tenants are now open, which has translated into improving July rent collections and facilitated deferral arrangements covering the vast majority of our uncollected rents. The decision to shore up our already strong liquidity position at the outset of the pandemic is allowing us to focus on operations as we continue to build a pathway to normal rent collections, while also positioning us to play offense as demonstrated by the new grocer deals that are under negotiation.” FINANCIAL RESULTSNet (loss) income attributable to common shareholders for the second quarter 2020 of $(4.6) million, or $(0.06) per diluted share, compared to $1.2 million, or $0.01 per diluted share for the same period in 2019. Net (loss) income for the six months ended June 30, 2020 was $(2.6) million, compared to $13.7 million for the same period in 2019.Funds from operations ("FFO") for the second quarter 2020 of $14.5 million, or $0.18 per diluted share, compared to $23.5 million, or $0.26 per diluted share for the same period in 2019.Operating FFO for the second quarter 2020 of $12.8 million, or $0.16 per diluted share, compared to $22.8 million or $0.26 per diluted share for the same period in 2019. Operating FFO for the second quarter 2020 excludes certain net income that totaled $1.7 million, primarily attributable to insurance proceeds related to storm damage at Front Range Village in Fort Collins, CO. The change in Operating FFO was primarily driven by higher income not probable of collection and higher straight-line rent reserves as a result of the COVID-19 pandemic, in addition to lower NOI resulting from the contribution of a 51.5% interest in five assets into a joint venture formed in fourth quarter 2019. Second quarter 2020 rent not probable of collection and straight-line rent reserves totaled $5.9 million or $0.07 per diluted share and $1.4 million or $0.02 per diluted share, respectively, including the Company's share of unconsolidated joint ventures.OPERATING RESULTSThe Company's operating results include its consolidated properties and its pro-rata share of unconsolidated joint ventures.Same property NOI during the second quarter 2020 decreased 13.2% compared to the same period in 2019. The decrease was driven by the impact of the COVID-19 pandemic, resulting in higher income not probable of collection, which detracted 14.7% from same property NOI growth.During the second quarter 2020, the Company signed 23 leases totaling 159,320 square feet. Blended re-leasing spreads on comparable leases were 2.0% with an Annualized Base Rent ("ABR") of $16.28 per square foot. Re-leasing spreads on two comparable new and 18 renewal leases were (4.4)% and 2.3%, respectively.As of June 30, 2020, the Company had $1.6 million of signed not commenced ABR that is scheduled to commence over the next twelve months.The table below summarizes the Company's leased rate and occupancy results at June 30, 2020, March 31, 2020 and June 30, 2019. June 30, 2020March 31, 2020June 30, 2019 Consolidated & Joint Venture Portfolio Leased rate93.6%94.1%94.9% Occupancy92.9%93.3%92.4% Anchor (GLA of 10,000 square feet or more) Leased rate96.7%96.9%97.6% Occupancy96.3%96.5%95.3% Small Shop (GLA of less than 10,000 square feet) Leased rate86.3%87.3%88.8% Occupancy84.9%85.6%85.7% BALANCE SHEETThe Company ended the second quarter 2020 with $249.7 million in cash, cash equivalents and restricted cash. At June 30, 2020, the Company had approximately $1.1 billion of consolidated debt and finance lease obligations, which resulted in a trailing twelve month net debt to proforma adjusted EBITDA ratio of 7.0x. Consolidated debt had a weighted average interest rate of 3.41% and a weighted average maturity, excluding scheduled amortization, of 4.9 years.FINANCING ACTIVITYDuring the second quarter 2020, the Company repaid $50.0 million on its unsecured revolving line of credit. At June 30, 2020, the Company had $175.0 million drawn on its $350.0 million unsecured revolving line of credit.DIVIDENDIn light of the disruption caused by the COVID-19 pandemic, the Board of Trustees has temporarily suspended the quarterly common dividend to retain cash. The Board of Trustees will continue to evaluate the Company’s dividend policy based upon the Company’s financial performance and economic outlook and, at a later date, intends to reinstate the quarterly common dividend in at least the amount required to continue qualifying as a REIT for U.S. federal income tax purposes.On July 29, 2020, the Company’s Board of Trustees declared a third quarter 2020 Series D convertible preferred share dividend of $0.90625 per share. The current conversion ratio of the Series D convertible preferred shares can be found on the Company's website at investors.rptrealty.com/shareholder-information/dividends. The preferred dividend, for the period July 1, 2020 through September 30, 2020 is payable on October 1, 2020 to shareholders of record on September 18, 2020.2020 GUIDANCEAs announced on March 31, 2020, and in light of the continued uncertainties surrounding the impact of the COVID-19 pandemic on the economy, the Company has withdrawn all previously provided guidance for 2020 as disclosed in the Company’s fourth quarter 2019 earnings press release dated February 19, 2020.COVID-19 UPDATEThe Company is closely monitoring the COVID-19 pandemic, including the impact on our business, employees, tenants, shopping centers and communities. The following summary is intended to provide information pertaining to the impacts of the COVID-19 pandemic on the Company’s business. Unless otherwise specified, the statistical and other information regarding the Company’s portfolio are as of July 31, 2020. These estimates are based on information available to the Company and includes its consolidated properties and its pro-rata share of unconsolidated joint ventures. * 100% of the Company's 49 shopping centers remain open and operating. * 92% of total tenants by ABR were open and operating, up from the low of 41% on April 22, 2020. * 67% of the Company’s properties by ABR had a grocery or grocer component and 87% of ABR stemmed from national or regional tenants, as of June 30, 2020. * 75% of July and 65% of second quarter 2020 rents have been paid. * 18% of July and 24% of second quarter 2020 rents are subject to signed or approved deferral agreements. * Ended the second quarter 2020 with $249.7 million in cash, cash equivalents and restricted cash with no debt maturities until June 27, 2021.CONFERENCE CALL/WEBCAST:The Company will host a live broadcast of its second quarter 2020 conference call to discuss its financial and operating results.Date:Wednesday, August 5, 2020 Time:9:00 a.m. ET Dial in :(877) 705-6003 International Dial in (201) 493-6725 Webcast:investors.rptrealty.com A telephonic replay of the call will be available through August 12, 2020. The replay can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers and entering passcode 13703970. A webcast replay will also be archived on the Company’s website for twelve months.SUPPLEMENTAL MATERIALSThe 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 firstname.lastname@example.org.RPT Realty owns and operates a national portfolio of open-air shopping destinations principally located in top U.S. markets. The Company's shopping centers offer diverse, locally-curated consumer experiences that reflect the lifestyles of their surrounding communities and meet the modern expectations of the Company's retail partners. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange (the “NYSE”). The common shares of the Company, par value $0.01 per share (the “common shares”) are listed and traded on the NYSE under the ticker symbol “RPT”. As of June 30, 2020, our property portfolio consisted of 49 shopping centers (including five shopping centers owned through a joint venture) representing 11.9 million square feet of gross leasable area. As of June 30, 2020, the Company’s pro-rata share of the aggregate portfolio was 93.6% leased. For additional information about the Company please visit rptrealty.com.Company Contact: Vin Chao, Senior Vice President - Finance 19 W 44th St. 10th Floor, Ste 1002 New York, New York 10036 email@example.com (212) 221-1752FORWARD-LOOKING STATEMENTSThis press release contains 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. These forward-looking statements represent our expectations, plans or beliefs concerning future events and may be identified by terminology such as “may,” “will,” “should,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” “predict” or similar terms. Although the forward-looking statements made in this document are based on our good faith beliefs, reasonable assumptions and our best judgment based upon current information, certain factors could cause actual results to differ materially from those in the forward-looking statements. Many of the factors that will determine the outcome of forward-looking statements are beyond our ability to predict or control. Currently, one of the most significant factors is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company and our tenants (including their ability to timely make rent payments), the real estate market (including the local markets where our properties are located), the financial markets and general global economy as well as the potential adverse impact on our ability to enter into new leases or renew leases with existing tenants on favorable terms or at all. The impact COVID-19 has, and will continue to have, on the Company and its tenants is highly uncertain, cannot be predicted and will vary based upon the duration, magnitude and scope of the COVID-19 pandemic as well as the actions taken by federal, state and local governments to mitigate the impact of COVID-19, including social distancing protocols, restrictions on business activities and “shelter-in- place” and “stay at home” mandates. Additional factors which may cause actual results to differ materially from current expectations include, but are not limited to: our success or failure in implementing our business strategy; economic conditions generally and in the commercial real estate and finance markets specifically; the cost and availability of capital, which depends in part on our asset quality and our relationships with lenders and other capital providers; risks associated with bankruptcies or insolvencies or general downturn in the businesses of tenants; the potential adverse impact from tenant defaults generally or from the unpredictability of the business plans and financial condition of the Company's tenants, which are heightened as a result of the COVID-19 pandemic; the execution of rent deferral or concession agreements on the agreed-upon terms; our business prospects and outlook; changes in governmental regulations, tax rates and similar matters; our continuing to qualify as a REIT; and other factors detailed from time to time in our filings with the Securities and Exchange Commission ("SEC"), including in particular those set forth under “Risk Factors” in our latest annual report on Form 10-K and our latest quarterly report on Form 10-Q, which you should interpret as being heightened as a result of the numerous and ongoing adverse impacts of COVID-19. Given these uncertainties, you should not place undue reliance on any forward-looking statements. Except as required by law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future. RPT REALTY CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (unaudited) June 30, December 31, 2020 2019 ASSETS Income producing properties, at cost: Land$331,265 $331,265 Buildings and improvements1,492,586 1,486,838 Less accumulated depreciation and amortization(372,103) (352,006) Income producing properties, net1,451,748 1,466,097 Construction in progress and land available for development35,104 42,279 Net real estate1,486,852 1,508,376 Equity investments in unconsolidated joint ventures128,804 130,321 Cash and cash equivalents247,110 110,259 Restricted cash and escrows2,549 4,293 Accounts receivable, net35,602 24,974 Acquired lease intangibles, net29,910 34,278 Operating lease right-of-use assets18,905 19,222 Other assets, net82,575 86,836 TOTAL ASSETS$2,032,307 $1,918,559 LIABILITIES AND SHAREHOLDERS' EQUITY Notes payable, net$1,103,996 $930,808 Finance lease obligation926 926 Accounts payable and accrued expenses41,063 55,360 Distributions payable1,765 19,792 Acquired lease intangibles, net36,857 38,898 Operating lease liabilities18,002 18,181 Other liabilities23,260 6,339 TOTAL LIABILITIES1,225,869 1,070,304 Commitments and Contingencies RPT Realty ("RPT") Shareholders' Equity: Preferred shares of beneficial interest, $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 issued and outstanding as of June 30, 2020 and December 31, 2019, respectively92,427 92,427 Common shares of beneficial interest, $0.01 par, 240,000 and 120,000 shares authorized as of June 30, 2020 and December 31, 2019, respectively, and 80,008 and 79,850 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively800 798 Additional paid-in capital1,171,287 1,169,557 Accumulated distributions in excess of net income(459,994) (436,361) Accumulated other comprehensive income(17,167) 1,819 TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO RPT787,353 828,240 Noncontrolling interest19,085 20,015 TOTAL SHAREHOLDERS' EQUITY806,438 848,255 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$2,032,307 $1,918,559 RPT REALTY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 REVENUE Rental income$43,686 $56,641 $95,408 $114,999 Other property income713 681 1,516 1,980 Management and other fee income228 39 579 90 TOTAL REVENUE44,627 57,361 97,503 117,069 EXPENSES Real estate tax expense8,453 8,722 16,604 18,544 Recoverable operating expense4,797 5,343 10,776 12,024 Non-recoverable operating expense2,146 2,709 4,423 5,199 Depreciation and amortization17,860 20,628 38,708 39,847 Transaction costs12 — 186 — General and administrative expense6,695 6,530 12,917 12,596 Insured expenses, net(1,713) — (1,653) — TOTAL EXPENSES38,250 43,932 81,961 88,210 OPERATING INCOME6,377 13,429 15,542 28,859 OTHER INCOME AND EXPENSES Other income (expense), net61 (123) 414 (231) Gain on sale of real estate— 371 — 6,073 Earnings from unconsolidated joint ventures802 26 1,058 80 Interest expense(10,177) (10,084) (19,578) (20,433) Loss on extinguishment of debt— (622) — (622) (LOSS) INCOME BEFORE TAX(2,937) 2,997 (2,564) 13,726 Income tax provision(19) (35) (50) (71) NET (LOSS) INCOME(2,956) 2,962 (2,614) 13,655 Net loss (income) attributable to noncontrolling partner interest68 (69) 60 (319) NET (LOSS) INCOME ATTRIBUTABLE TO RPT(2,888) 2,893 (2,554) 13,336 Preferred share dividends(1,675) (1,675) (3,350) (3,350) NET (LOSS) INCOME AVAILABLE TO COMMON SHAREHOLDERS$(4,563) $1,218 $(5,904) $9,986 (LOSS) EARNINGS PER COMMON SHARE Basic$(0.06) $0.01 $(0.08) $0.12 Diluted$(0.06) $0.01 $(0.08) $0.12 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic79,976 79,764 79,942 79,754 Diluted79,976 80,156 79,942 80,148 RPT REALTY RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FUNDS FROM OPERATIONS (In thousands, except per share data) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net (loss) income$(2,956) $2,962 $(2,614) $13,655 Net loss (income) attributable to noncontrolling partner interest68 (69) 60 (319) Preferred share dividends(1,675) (1,675) (3,350) (3,350) Net (loss) income available to common shareholders(4,563) 1,218 (5,904) 9,986 Adjustments: Rental property depreciation and amortization expense17,719 20,527 38,439 39,649 Pro-rata share of real estate depreciation from unconsolidated joint ventures (1)1,369 14 2,782 28 Gain on sale of depreciable real estate— — — (5,702) FFO available to common shareholders14,525 21,759 35,317 43,961 Noncontrolling interest in Operating Partnership (2)(68) 69 (60) 319 Preferred share dividends (assuming conversion) (3)— 1,675 — 3,350 FFO available to common shareholders and dilutive securities$14,457 $23,503 $35,257 $47,630 Gain on sale of land— (371) — (371) Transaction costs (4)12 — 186 — Insured expenses, net(1,713) — (1,653) — Severance expense (5)66 — 128 98 Executive management reorganization, net (5)(6)— 698 — 446 Above and below market lease intangible write-offs10 (1,663) (391) (1,674) Pro-rata share of acquisition costs from unconsolidated joint ventures (1)(217) — 401 — Loss on extinguishment of debt— 622 — 622 Payment of loan amendment fees (5)184 — 184 — Bond interest proceeds (7)— — (213) — Operating FFO available to common shareholders and dilutive securities$12,799 $22,789 $33,899 $46,751 Weighted average common shares79,976 79,764 79,942 79,754 Shares issuable upon conversion of Operating Partnership Units (“OP Units”) (2)1,909 1,909 1,909 1,909 Dilutive effect of restricted stock100 392 299 394 Shares issuable upon conversion of preferred shares (3)— 6,923 — 6,923 Weighted average equivalent shares outstanding, diluted81,985 88,988 82,150 88,980 FFO available to common shareholders and dilutive securities per share, diluted$0.18 $0.26 $0.43 $0.54 Operating FFO available to common shareholders and dilutive securities per share, diluted$0.16 $0.26 $0.41 $0.53 Dividend per common share$— $0.22 $0.22 $0.44 Payout ratio - Operating FFO 0.0% 84.6% 51.2% 83.0% (1) Amounts noted are included in Earnings from unconsolidated joint ventures. (2) The total noncontrolling interest reflects OP units convertible on a one-of-one basis into common shares. (3) 7.25% Series D Cumulative Convertible Perpetual Preferred Shares of Beneficial Interest, $0.01 par (“Series D Preferred Shares”) are paid annual dividends of $6.7 million and are currently convertible into approximately 7.0 million shares of common stock. They are dilutive only when earnings or FFO exceed approximately $0.24 per diluted share per quarter and $0.96 per diluted share per year. The conversion ratio is subject to adjustment based upon a number of factors, and such adjustment could affect the dilutive impact of the Series D convertible preferred shares on FFO and earning per share in future periods. (4) Costs associated with a terminated acquisition and a terminated disposition. (5) Amounts noted are included in General and administrative expense. (6) 2Q19 includes severance and accelerated vesting of restricted stock associated with our former Executive Vice President of Transactions and performance award expense related to the Company's former Chief Executive Officer. (7) Amounts noted are included in Other income (expense), net. RPT REALTY RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (amounts in thousands) (unaudited) Reconciliation of net (loss) income available to common shareholders to Same Property Net Operating Income (NOI) at Pro-Rata Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net (loss) income available to common shareholders$(4,563) $1,218 $(5,904) $9,986 Preferred share dividends1,675 1,675 3,350 3,350 Net (loss) income attributable to noncontrolling partner interest(68) 69 (60) 319 Income tax provision19 35 50 71 Interest expense10,177 10,084 19,578 20,433 Loss on extinguishment of debt— 622 — 622 Earnings from unconsolidated joint ventures(802) (26) (1,058) (80) Gain on sale of real estate— (371) — (6,073) Insured expenses, net(1,713) — (1,653) — Other (income) expense, net(61) 123 (414) 231 Management and other fee income(228) (39) (579) (90) Depreciation and amortization17,860 20,628 38,708 39,847 Transaction costs12 — 186 — General and administrative expenses6,695 6,530 12,917 12,596 Pro-rata share of NOI from unconsolidated joint venture (1)1,918 — 4,150 — Lease termination fees— (83) (142) (232) Amortization of lease inducements191 128 329 224 Amortization of acquired above and below market lease intangibles, net(638) (2,463) (1,733) (3,372) Straight-line ground rent expense76 76 153 153 Straight-line rental income1,219 (574) 918 (1,384) NOI at Pro-Rata (2)31,769 37,632 68,796 76,601 NOI from Other Investments331 (635) 790 (2,940) Same Property NOI at Pro-Rata (3)$32,100 $36,997 $69,586 $73,661 (1) Represents 51.5% of the NOI from the five properties contributed to R2G Venture LLC after December 9, 2019. (2) Includes 100.0% of the NOI from the five properties contributed to R2G Venture LLC prior to December 10, 2019 and 51.5% of the NOI from the same five properties after December 9, 2019. (3) Includes 51.5% of the NOI from the five properties contributed to R2G Venture LLC for all periods presented. RPT REALTY RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (amounts in thousands) (unaudited) Reconciliation of net (loss) income Net loss - Six months ended June 30, 2020$(2,614) Plus: Net income - Twelve months ended December 31, 201993,686 Less: Net income - Six months ended June 30, 201913,655 Net income - Twelve months ended June 30, 2020$77,417 Twelve Months Ended June 30, 2020 Reconciliation of net income to proforma adjusted EBITDA Net income$77,417 Interest expense39,202 Income tax provision158 Depreciation and amortization77,508 Gain on sale of depreciable real estate(75,783) Pro-rata adjustments from unconsolidated entities3,213 Gain on sale of joint venture depreciable real estate(385) Other gain on unconsolidated joint ventures(237) EBITDAre$121,093 Severance expense160 Executive management reorganization, net956 Above and below market lease intangible write-offs(2,242) Transaction costs186 Pro-rata share of acquisition costs from unconsolidated entities401 R2G Venture LLC related costs499 Insured expenses, net623 Loss on extinguishment of debt1,949 Payment of loan amendment fees184 Bond interest proceeds(213) Adjusted EBITDA123,596 Proforma adjustments (1)(2,113) Proforma adjusted EBITDA$121,483 Reconciliation of Notes Payable, net to Net Debt Notes payable, net$1,103,996 Unamortized premium(1,541) Deferred financing costs, net4,000 Consolidated notional debt1,106,455 Finance lease obligation926 Cash, cash equivalents and restricted cash(249,659) Pro-rata share of unconsolidated entities cash, cash equivalents and restricted cash(2,557) Net debt$855,165 Reconciliation of interest expense to total fixed charges Interest expense$39,202 Preferred share dividends6,701 Scheduled mortgage principal payments2,445 Total fixed charges$48,348 Net debt to proforma adjusted EBITDA7.0 x Interest coverage ratio (proforma adjusted EBITDA / interest expense)3.1 x Fixed charge coverage ratio (proforma adjusted EBITDA / fixed charges)2.5 x (1) The twelve months ended June 30, 2020 excludes $3.5 million representing 48.5% of the five properties contributed to R2G Venture LLC and $0.2 million from dispositions partially offset by $0.7 million from an annual expense that was fully recognized in the fourth quarter of 2019 and $0.9 million from the acquisition of Lakehills Plaza. RPT REALTY RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (amounts in thousands) (unaudited) Three Months Ended June 30, 2020 2019 Reconciliation of net income to annualized proforma adjusted EBITDA Net (loss) income$(2,956) $2,962 Interest expense10,177 10,084 Income tax provision19 35 Depreciation and amortization17,860 20,628 Gain on sale of depreciable real estate— — Pro-rata adjustments from unconsolidated entities1,369 14 EBITDAre26,469 33,723 Severance expense66 — Executive management reorganization, net— 698 Above and below market lease intangible write-offs10 (1,663) Transaction costs12 — Pro-rata share of acquisition costs from unconsolidated entities(217) — Gain on sale of land— (371) Insured expenses, net(1,713) — Loss on extinguishment of debt— 622 Payment of loan amendment fees184 — Adjusted EBITDA24,811 33,009 Proforma adjustments (1)— 516 Proforma adjusted EBITDA$24,811 $33,525 Annualized proforma adjusted EBITDA$99,244 $134,100 Reconciliation of Notes Payable, net to Net Debt Notes payable, net$1,103,996 $934,223 Unamortized premium(1,541) (2,464) Deferred financing costs, net4,000 2,083 Consolidated notional debt1,106,455 933,842 Finance lease obligation926 975 Cash, cash equivalents and restricted cash(249,659) (51,346) Pro-rata share of unconsolidated entities cash, cash equivalents and restricted cash(2,557) — Net debt$855,165 $883,471 Reconciliation of interest expense to total fixed charges Interest expense$10,177 $10,084 Preferred share dividends1,675 1,675 Scheduled mortgage principal payments584 638 Total fixed charges$12,436 $12,397 Net debt to annualized proforma adjusted EBITDA8.6 x 6.6 x Interest coverage ratio (proforma adjusted EBITDA / interest expense)2.4 x 3.3 x Fixed charge coverage ratio (proforma adjusted EBITDA / fixed charges)2.0 x 2.7 x (1) 2Q19 excludes $0.5 million of loss from dispositions. The proforma adjustments treat the activity as if they occurred at the start of each quarter. RPT Realty Non-GAAP Financial DefinitionsCertain 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 measures provide additional and useful means to assess our performance. These measures do not represent alternatives to GAAP measures as indicators of performance and a comparison of the Company's presentations to similarly titled measures of other REITs may not necessarily be meaningful due to possible differences in definition and application by such REITs.Funds From Operations (FFO) As 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 of depreciable real estate, (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.Operating FFO In addition to FFO, we include Operating FFO as an additional measure of our financial and operating performance. Operating FFO excludes transactions costs and periodic items such as gains (or losses) from sales of land and impairment provisions on land, bargain purchase gains, severance expense, executive management reorganization costs, net, accelerated amortization of debt premiums, gains or losses on extinguishment of debt, insured expenses, net, accelerated write-offs of above and below market lease intangibles and R2G Venture LLC related costs that are not adjusted under the current NAREIT definition of FFO. We provide a reconciliation of FFO to Operating FFO. In future periods, Operating FFO may also include other adjustments, which will be detailed in the reconciliation for such measure, that we believe will enhance comparability of Operating FFO from period to period. 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.Net Operating Income (NOI) / Same Property NOI / NOI from Other Investments NOI consists of (i) rental income and other property income, before straight-line rental income, amortization of lease inducements, amortization of acquired above and below market lease intangibles and lease termination fees less (ii) real estate taxes and all recoverable and non-recoverable operating expenses other than straight-line ground rent expense, in each case, including our share of these items from our R2G Venture LLC unconsolidated joint venture.NOI, Same 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 operating properties for the reporting period. Same Property NOI for the three and six months ended June 30, 2020 and 2019 represents NOI from the Company's same property portfolio consisting of 41 consolidated operating properties acquired or placed in service and stabilized prior to January 1, 2019 and five previously consolidated properties contributed to the newly formed joint venture, R2G Venture LLC, in December 2019. Same property NOI from these five properties includes 51.5% of their NOI as a consolidated property for the period January 1, 2019 through June 30 2019 and 51.5% of their NOI as an unconsolidated property accounted for under the equity method for the period January 1, 2020 through June 30, 2020. 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. NOI from Other Investments for the three and six months ended June 30, 2020 and 2019 represents NOI primarily from (i) properties disposed of and acquired during 2019, (ii) 48.5% of the NOI prior to December 10, 2019 from the five previously consolidated properties contributed to the R2G Venture LLC unconsolidated joint venture, (iii) Webster Place and Rivertowne Square where the Company has begun activities in anticipation of future redevelopment, (iv) certain property related employee compensation, benefits, and travel expense and (v) noncomparable operating income and expense adjustments.NOI, Same Property NOI and NOI from Other Investments should not be considered as alternatives to net income in accordance with GAAP or as measures of liquidity. Our method of calculating these measures may differ from methods used by other REITs and, accordingly, may not be comparable to such other REITs.RPT Realty Non-GAAP Financial Definitions (continued)EBITDAre/Adjusted EBITDA/Proforma Adjusted EBITDA NAREIT 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 other items that we believe enhance comparability of Adjusted EBITDA across periods and are listed as adjustments in the applicable reconciliation. 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.Pro-Rata We present certain financial information on a “pro-rata” basis or including “pro-rata” adjustments. Unless otherwise specified, pro-rata financial information includes our proportionate economic ownership of each of our unconsolidated joint ventures derived on an entity-by-entity basis by applying the ownership percentage interest used to arrive at our share of the net operations for the period consistent with the application of the equity method of accounting to each of our unconsolidated joint ventures. See page 30 of our quarterly financial and operating supplement for a discussion of important considerations and limitations that you should be aware of when review financial information that we present on a pro-rata basis or including pro-rata adjustment.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.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 under leases with an initial term of greater than one year, including signed leases not yet commenced, 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.
RPT Realty (RPT) (the “Company”) announced today that it will be hosting meetings with investors during the Nareit REITweek Virtual Investor Conference on Tuesday, June 2, 2020 and Wednesday, June 3, 2020. The Company posted an investor presentation to its website at investors.rptrealty.com that management will reference during the conference.
Q1 2020 RPT Realty Earnings Call