RPT - RPT Realty Announces $791 Million of Investment Activity in 2021
NEW YORK, Jan. 06, 2022 (GLOBE NEWSWIRE) -- RPT Realty (NYSE:RPT) (“RPT” or the “Company”) announced today transaction activity for the quarter and year ended December 31, 2021.
During the fourth quarter 2021, through its three strategic investment platforms, the Company closed on the acquisition of three multi-tenant open-air shopping centers with a contract value of $173.0 million. The Company, through its RGMZ net lease platform also acquired $73.2 million of single-tenant net lease assets, all of which were parceled from existing RPT multi-tenant shopping centers. Additionally, the Company closed on the sale of Market Plaza and Webster Place in the Chicago market for a combined contract value of $59.5 million.
For the full year 2021, through its three strategic investment platforms, the Company closed on 11 multi-tenant acquisitions with a contract value of $540.9 million. The Company, through RGMZ, also acquired $191.0 million of single-tenant net lease assets including $186.3 million that were parceled from RPT multi-tenant shopping centers. In addition, the Company closed on $59.5 million of multi-tenant dispositions in 2021.
Fourth Quarter 2021 Investment Highlights
- Acquired the 82,000 square foot, Highland Lakes shopping center in Tampa, the Company’s fifth largest market based on annualized base rent, for $15.0 million. The Company acquired the asset with a vacant former Steinmart box and has since signed a lease with a premier, investment grade grocer that will increase occupancy to over 95% and result in an expected stabilized yield to current market cap rate spread of approximately 150 basis points.
- Acquired the 510,000 square foot Dedham shopping center in the Boston market for $131.5 million or $67.7 million at the Company’s pro-rata share through the R2G joint venture platform. Dedham is a market dominant infill center anchored by a top Stop & Shop supermarket, located inside the Boston 128 loop that boasts strong 3-mile average household incomes of $136,000 and population density of 109,000.
- Acquired the 259,000 square foot, Hannaford’s supermarket and Lowe’s anchored Mountain Valley shopping center in Conway, NH for $26.5 million or $1.7 million at the Company’s pro-rata share through RGMZ. The acquisition of Mountain Valley represents a unique value creation opportunity for the RGMZ platform that capitalizes on value dislocations between multi and single-tenant assets on an attractive risk-adjusted basis.
- Sold Market Plaza and Webster Place for $59.5 million in Chicago, significantly reducing the Company’s exposure to this non-core market and to Regal Cinemas.
- Sold $73.2 million of single-tenant net lease properties that were parceled from existing RPT multi-tenant shopping centers to the RGMZ net lease platform, including $64.6 million of sales from the Company’s recently-acquired Northborough Crossing property in the Boston market and $8.6 million of sales that were part of the RGMZ initial seed portfolio.
“2021 marked a significant milestone in the evolution of the RPT portfolio,” said Brian Harper, President and Chief Executive Officer. “The attractive and high-growth markets of Boston, Tampa, Atlanta and Nashville now account for over 25% of our ABR, up more than 12% since the end of 2020, while our exposure to Detroit, Cincinnati and Chicago has fallen by more than 8% over the same time period. The power of our three investment platforms is allowing us to quickly reshape our portfolio, while generating accretive returns for our shareholders.”
2021 Multi-tenant Acquisitions
| Property Name |
| Closing Date |
| Metro Market |
| GLA |
| Contract Price |
| Pro-rata Contract Price |
| (in thousands) |
| (in millions) |
| (in millions) |
| RPT Platform |
| Northborough Crossing (1) |
| 6/18/21 |
| Boston |
| 646 |
| $104.0 |
| $104.0 |
| Bellevue Plaza |
| 7/7/21 |
| Nashville |
| 77 |
| 10.4 |
| 10.4 |
| Woodstock Square |
| 7/14/21 |
| Atlanta |
| 219 |
| 37.7 |
| 37.7 |
| Newnan Pavilion (2) |
| 8/5/21 |
| Atlanta |
| 467 |
| 41.6 |
| 41.6 |
| Highland Lakes |
| 12/16/21 |
| Tampa |
| 82 |
| 15.0 |
| 15.0 |
| Total RPT |
| 1,491 |
| $ 208.7 |
| $ 208.7 |
| R2G Platform |
| East Lake Woodlands |
| 7/9/21 |
| Tampa |
| 104 |
| $25.5 |
| $13.1 |
| Village Shoppes of Canton |
| 7/12/21 |
| Boston |
| 284 |
| 61.5 |
| 31.7 |
| South Pasadena Shopping Center |
| 7/14/21 |
| Tampa |
| 164 |
| 32.7 |
| 16.8 |
| Bedford Marketplace |
| 7/29/21 |
| Boston |
| 153 |
| 54.5 |
| 28.1 |
| Dedham |
| 10/7/21 |
| Boston |
| 510 |
| 131.5 |
| 67.7 |
| Total R2G |
| 1,215 |
| $ 305.7 |
| $ 157.4 |
| RGMZ Platform |
| Mountain Valley |
| 11/18/21 |
| Conway |
| 259 |
| $26.5 |
| $1.7 |
| Total RGMZ |
| 259 |
| $ 26.5 |
| $ 1.7 |
| Total Acquisitions |
| 2,965 |
| $ 540.9 |
| $ 367.8 |
| (1) |
| The Company sold $64.6 million of single-tenant, net lease parcels from this property to RGMZ. |
| (2) |
| The Company sold or expects to sell up to $6.1 million of single-tenant, net lease parcels from this property to RGMZ. |
2021 RPT Dispositions
| Property Name |
| Closing Date |
| Metro Market |
| GLA |
| Contract Price |
| (in thousands) |
| (in millions) |
| Multi-tenant Dispositions |
| Market Plaza |
| 11/2/21 |
| Chicago |
| 166 |
| $30.2 |
| Webster Place |
| 12/28/21 |
| Chicago |
| 135 |
| 29.3 |
| Total Multi-tenant |
| 301 |
| $ 59.5 |
| Single-tenant Dispositions |
| RGMZ Venture REIT LLC - 13 Income Producing Properties (1) |
| 3/5/21 |
| Various (2) |
| 169 |
| $36.2 |
| RGMZ Venture REIT LLC - 2 Income Producing Properties (1) |
| 5/21/21 |
| Detroit |
| 329 |
| 39.3 |
| RGMZ Venture REIT LLC - 13 Income Producing Properties (1) |
| 8/27/21 |
| Various (3) |
| 147 |
| 36.1 |
| RGMZ Venture REIT LLC - 1 Income Producing Property (1) |
| 9/14/21 |
| Atlanta |
| 6 |
| 1.5 |
| RGMZ Venture REIT LLC - 4 Income Producing Properties (1) |
| 12/17/21 |
| Boston |
| 268 |
| 64.6 |
| RMGZ Venture REIT LLC – 2 Income Producing Properties (1) |
| 12/30/21 |
| Nashville |
| 10 |
| 3.6 |
| RMGZ Venture REIT LLC – 1 Income Producing Property (1) |
| 12/31/21 |
| Chicago |
| 20 |
| 5.0 |
| Total Single-tenant |
| 949 |
| $ 186.3 |
| Total RPT Dispositions |
| 1,250 |
| $ 245.8 |
| (1) |
| The Company contributed net lease retail assets that were subdivided from wholly-owned shopping centers to its newly formed RGMZ Venture REIT LLC joint venture. The properties contributed included both income producing properties in which the Company owned the depreciable real estate, as well as income producing properties which are subject to a ground lease. |
| (2) |
| The properties contributed on March 5, 2021 are located in Colorado, Florida, Georgia, Illinois, Indiana and Kentucky. |
| (3) |
| The properties contributed on August 27, 2021 are located in Florida, Georgia and Michigan. |
2021 Single-tenant Acquisitions
| Property Name |
| Closing Date |
| Metro Market |
| GLA |
| Contract Price |
| Pro-rata Contract Price |
| (in thousands) |
| (in millions) |
| (in millions) |
| RGMZ Platform |
| RGMZ Venture REIT LLC - 13 Income Producing Properties (1) |
| 3/5/21 |
| Various (2) |
| 169 |
| $36.2 |
| $2.3 |
| RGMZ Venture REIT LLC - 2 Income Producing Properties (1) |
| 5/21/21 |
| Detroit |
| 329 |
| 39.3 |
| 2.5 |
| Single-Tenant Property |
| 7/30/21 |
| Las Vegas |
| 14 |
| 4.7 |
| 0.3 |
| RGMZ Venture REIT LLC - 13 Income Producing Properties (1) |
| 8/27/21 |
| Various (3) |
| 147 |
| 36.1 |
| 2.3 |
| RGMZ Venture REIT LLC - 1 Income Producing Property (1) |
| 9/14/21 |
| Atlanta |
| 6 |
| 1.5 |
| 0.1 |
| RGMZ Venture REIT LLC - 4 Income Producing Property (1) |
| 12/17/21 |
| Boston |
| 268 |
| 64.6 |
| 4.1 |
| RMGZ Venture REIT LLC – 2 Income Producing Properties (1) |
| 12/30/21 |
| Nashville |
| 10 |
| 3.6 |
| 0.2 |
| RMGZ Venture REIT LLC – 1 Income Producing Property (1) |
| 12/31/21 |
| Chicago |
| 20 |
| 5.0 |
| 0.3 |
| Total RGMZ |
| 963 |
| $ 191.0 |
| $ 12.1 |
| Total Single-tenant Acquisitions |
| 963 |
| $ 191.0 |
| $ 12.1 |
| (1) |
| The Company contributed net lease retail assets that were subdivided from wholly-owned shopping centers to its newly formed RGMZ Venture REIT LLC joint venture. The properties contributed included both income producing properties in which the Company owned the depreciable real estate, as well as income producing properties which are subject to a ground lease. |
| (2) |
| The properties contributed on March 5, 2021 are located in Colorado, Florida, Georgia, Illinois, Indiana and Kentucky. |
| (3) |
| The properties contributed on August 27, 2021 are located in Florida, Georgia and Michigan. |
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 September 30, 2021, the Company's property portfolio (the "aggregate portfolio") consisted of 57 multi-tenant shopping centers (including nine shopping centers owned through a joint venture) and 30 net lease retail properties (all of which are owned through a separate joint venture) which together represent 14.0 million square feet of gross leasable area (“GLA”). As of September 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 Chao
Senior 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.