RPT Realty Announces Continued Execution of Its 2021 Strategic Acquisition Plan
September 08 2021 - 4:15PM
RPT Realty (NYSE:RPT) (“RPT” or the “Company”)
announced today that it continues to make substantial progress
towards the execution of its 2021 strategic acquisition plan.
RPT, through its grocery-anchor focused joint
venture platform R2G Venture LLC (“R2G”), is under contract to
acquire the Dedham shopping center located in the Boston market for
a contract price of $131.5 million, or $67.7 million at RPT’s
pro-rata share. Additionally, the Company closed on the previously
announced acquisition of Newnan Pavilion, a grocery-anchored
shopping center in the Atlanta market, for $41.6 million. The
Company has closed or is under contract on nine multi-tenant
open-air shopping centers with a gross acquisition value of
approximately $500 million, or about $350 million at the Company’s
pro-rata share. Net of RPT’s share of expected parcel sales to its
net lease joint venture platform RGMZ Venture REIT LLC (“RGMZ”),
the Company will have deployed $285 million of capital into high
growth, target markets of Boston, Nashville, Tampa and Atlanta.
Boston is expected to become the Company’s third largest market,
while eight of the nine centers are grocery-anchored, demonstrating
the cash flow strength of these acquisitions.
Dedham is a 510,000 square foot grocery-anchored
shopping center located in an affluent and densely populated infill
location inside the 128 loop (Interstate 95) with three-mile
average household income and population density of $136,000 and
109,000, respectively. Dedham is 91.8% occupied and anchored by a
high performing Stop and Shop. The center is also shadow anchored
by Lowe’s and is home to a mix of other thriving retailers and
quick service restaurants including T.J. Maxx, Dick’s Sporting
Goods, Starbucks, and Chipotle. This acquisition is expected to
close in the fourth quarter 2021, subject to customary closing
conditions.
“We continue to drive the dramatic
transformation of our portfolio, highlighted by our expected
acquisition of Dedham in the Boston market,” said Brian Harper,
President and Chief Executive Officer. “The power of our strategic
joint ventures coupled with our wholly owned platform have
positioned RPT to quickly redeploy $500 million of capital into
highly sought after top national markets, which we expect will
allow for accelerated and accretive earnings growth in 2021 and
2022.”
Year-to-date Multi-tenant
Acquisitions
Property Name |
Closing Date |
MetroMarket |
GLA |
ContractPrice |
Pro-rataContractPrice |
Platform |
|
|
|
(in thousands) |
(in millions) |
(in millions) |
|
Northborough Crossing1 |
6/18/2021 |
Boston |
646 |
$104.0 |
$104.0 |
RPT |
Village Shoppes of Canton |
7/12/2021 |
Boston |
284 |
$61.5 |
$31.7 |
R2G |
South Pasadena Shopping Center |
7/14/2021 |
Tampa |
164 |
$32.7 |
$16.8 |
R2G |
Bedford Marketplace |
7/29/2021 |
Boston |
153 |
$54.5 |
$28.1 |
R2G |
Bellevue Place |
7/7/2021 |
Nashville |
77 |
$10.4 |
$10.4 |
RPT |
East Lake Woodlands |
7/9/2021 |
Tampa |
104 |
$25.5 |
$13.1 |
R2G |
Woodstock Square |
7/14/2021 |
Atlanta |
219 |
$37.7 |
$37.7 |
RPT |
Newnan Pavilion2 |
8/5/2021 |
Atlanta |
467 |
$41.6 |
$41.6 |
RPT |
Dedham |
Under Contract |
Boston |
510 |
$131.5 |
$67.7 |
R2G |
Total Closed or Under Contract |
|
|
2,624 |
$499.4 |
$351.1 |
|
1 The Company expects to sell up to $64.6
million of single-tenant, net lease parcels from this property to
RGMZ. 2 The Company expects to sell up to $6.1 million
of single-tenant, net lease parcels from this property to RGMZ.
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 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 are listed and traded on the NYSE under the ticker
symbol “RPT”. As of June 30, 2021, the Company's property portfolio
consisted of 50 multi-tenant shopping centers (including five
shopping centers owned through a joint venture), 15 net lease
retail properties (all of which are owned through a separate joint
venture) and 13 net lease retail properties that were held for sale
by the Company (the “aggregate portfolio”) which together represent
12.6 million square feet of gross leasable area (“GLA”). As of June
30, 2021, the Company’s pro-rata share of the aggregate portfolio
was 92.5% leased. For additional information about the Company
please visit rptrealty.com.
Contact Information
Vin ChaoSenior Vice President - Finance
vchao@rptrealty.com (212) 221-1752
Forward-Looking Statements
This 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,” “expect,”
“continue” 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. These factors include, without limitation, the Company's
ability to satisfy the closing conditions and/or complete the
acquisitions described herein on the terms currently contemplated
or at all, the Company's success or failure in implementing its
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 the Company's
asset quality and its relationships with lenders and other capital
providers; the effect of the current COVID-19 pandemic on the
financial condition, results of operations, cash flows and
performance of the Company and its tenants; the Company's business
prospects and outlook; and other factors detailed from time to time
in the Company's filings with the Securities and Exchange
Commission, including in particular those set forth under “Risk
Factors” in the Company's latest annual report on Form 10-K and
quarterly report on Form 10-Q, which you should interpret as being
heightened as a result of the numerous and ongoing adverse impacts
of the COVID-19 pandemic. Given these uncertainties, you should not
place undue reliance on any forward-looking statements. Except as
required by law, the Company assumes no obligation to update these
forward-looking statements, even if new information becomes
available in the future.
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