Retail Properties Of America, Inc. Completes $979.5 Million Of Investment Activity And $1.45 Billion Of Capital Markets Activity In 2015

Jan 07, 2016, 16:01 ET from Retail Properties of America, Inc.

OAK BROOK, Ill., Jan. 7, 2016 /PRNewswire/ -- Retail Properties of America, Inc. (NYSE: RPAI) (or the "Company") today announced total 2015 investment activity of approximately $979.5 million, consisting of $463.1 million of acquisitions and $516.4 million of dispositions. The Company also continued to demonstrate the strength of its balance sheet with total 2015 capital markets activity of $1.45 billion, including its amended and restated credit facility of $1.2 billion and the public offering of $250.0 million of its investment grade senior unsecured notes.

2015 Acquisition Activity:

  • Acquired eight high quality multi-tenant retail assets and three strategically adjacent retail assets for approximately $463.1 million:
    • Downtown Crown, Washington, D.C. Metropolitan Statistical Area ("MSA") (Q1)
    • Merrifield Town Center, Washington, D.C. MSA (Q1)
    • Fort Evans Plaza II, Washington, D.C. MSA (Q1)
    • Cedar Park Town Center, Austin MSA (Q1)
    • Lake Worth Towne Crossing Parcel, Dallas MSA (Q1)
    • Tysons Corner, Washington, D.C. MSA (Q2)
    • Woodinville Plaza, Seattle MSA (Q2)
    • Southlake Town Square – Trader Joe's, Dallas MSA (Q3)
    • Coal Creek Marketplace, Seattle MSA (Q3)
    • Royal Oaks – Trader Joe's, Houston MSA (Q4)
    • Towson Square, Baltimore MSA (Q4)
  • Acquisition highlights include the following:
    • Weighted average annualized base rent ("ABR") per occupied square foot of $21.54;
    • Weighted average household income of $128,000 and weighted average population of 103,000 within a three-mile radius; and
    • Strengthened its footprint in its target markets by 1.2 million square feet.
  • Increased occupancy for the 2015 acquisitions by 5.9% to 93.7% as of December 31, 2015, compared to 87.8% at the time of acquisition.

2015 Disposition Activity:

  • Completed approximately $516.4 million of dispositions, which included the sale of 16 non-strategic multi-tenant retail assets, five of its six remaining office assets, three single-user retail assets and two non-strategic development assets;
  • Weighted average retail ABR per occupied square foot of $12.38, 42.5% lower than the 2015 acquisitions' ABR per square foot;
  • Retail weighted average household income of $64,000 and weighted average population of 74,000 within a three-mile radius; and
  • Completed multi-tenant retail exit from four states and twelve non-strategic markets:
    • States: Kansas, Montana, Oklahoma and Nevada
    • MSAs: Lawrence, Kansas; Oklahoma City, Oklahoma; St. George, Utah; Canton-Massillon and Columbus, Ohio; McAllen, Texas; Denver, Colorado; Knoxville, Tennessee; and Las Vegas, Nevada
    • Micropolitan Statistical Areas: Traverse City, MI; Greensburg, IN; and Kalispell, MT.

2015 Capital Markets Activity:

  • Completed a public offering of $250.0 million in aggregate principal amount of its 4.00% senior unsecured notes due 2025;
  • Obtained commitments on a $1.2 billion amended and restated credit facility increasing total capacity by $200.0 million, extending the term by a weighted average of 2.2 years and lowering the interest rate by a weighted average of 13 basis points. The Company closed on this transaction on January 6, 2016;
  • Repaid $425.4 million of mortgage and construction debt, excluding amortization, with a weighted average interest rate of 5.54%; and
  • Defeased $70.1 million of mortgage debt with an interest rate of 7.50% in connection with its 2015 disposition activity.

"2015 marked another year of strong execution," stated Steve Grimes, president and chief executive officer. "We continue to demonstrate our ongoing ability to be effective allocators of capital as we advance our capital recycling initiatives. In only two and a half years and in a very competitive investment environment, we recycled over twenty percent of our portfolio into high quality, strategically located retail assets, significantly improving our demographic, ABR and growth profile. We also continue to strengthen our balance sheet through opportunistic transaction activity, increasing liquidity, providing greater flexibility and lowering costs. Our portfolio and balance sheet advancements position us for long-term growth."

ABOUT RPAI Retail Properties of America, Inc. is a REIT and is one of the largest owners and operators of high quality, strategically located shopping centers in the United States. As of September 30, 2015, the Company owned 201 retail operating properties representing 29.2 million square feet. 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.

CONTACT INFORMATION Michael Fitzmaurice, VP - Finance Retail Properties of America, Inc.        630-634-4233

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SOURCE Retail Properties of America, Inc.



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