Retail Properties of America, Inc. Announces Third Quarter 2020 Dividend on Common Stock and Provides Business Update

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Company Release - 9/8/2020

OAK BROOK, Ill., Sept. 8, 2020 /PRNewswire/ -- Retail Properties of America, Inc. (NYSE: RPAI) (the "Company") today announced that its board of directors has declared a third quarter dividend for its outstanding Class A common stock of $0.05 per common share. The Company's board had previously suspended the dividend to preserve and enhance liquidity and capital positioning. The dividend of $0.05 per common share will be paid on October 9, 2020, to Class A common stockholders of record on September 25, 2020.

"I am pleased to report that our board has resumed dividend payments for 2020," stated Steve Grimes, chief executive officer. "This reinstated dividend level takes into consideration dividends already paid year to date. The Board will continue to monitor our financial performance and declare additional dividend payments to at least cover our minimum taxable distribution requirements. This move further signals our desire to preserve our balance sheet strength and financial flexibility and the stabilization in our underlying business, including our improving rent collection trends, the ongoing reopening of our tenant base and our recent successful efforts to further reinforce our sound capital structure position. Our July rent collection level has improved from the previously reported 71.4% to 76%, and August rent collection stands at 77%, as our open square footage percentage has continued to migrate higher and now stands at 93%. We look forward to driving incremental operational progress and delivering on our goal to grow this initial quarterly dividend amount as conditions further normalize in the coming quarters."

As previously announced, the Company issued $100.0 million of principal in a reopening of its 4.00% senior unsecured notes due 2025 on July 21, 2020 and $400.0 million of principal in a public offering of its 4.75% senior unsecured notes due 2030 on August 25, 2020. The Company has redeployed the related net proceeds from these public issuances to repay the principal of existing indebtedness as follows:

  • $135.0 million – repaid the full amount outstanding as of June 30, 2020 under the Company's $850.0 million unsecured revolving line of credit;
  • $250.0 million – prepaid the Company's term loan due January 2021 and terminated the related swaps that had effectively fixed this variable rate loan; and
  • $100.0 million – issued notice to holders of the Company's intent to prepay the $100.0 million principal amount outstanding under its private placement notes due June 2021 on September 14, 2020.

Following the anticipated prepayment of the private placement notes, the Company will have no debt maturities until 2022 and more than $880.0 million in total available liquidity.

ABOUT RPAI
Retail Properties of America, Inc. is a REIT that owns and operates high quality, strategically located open-air shopping centers, including properties with a mixed-use component. As of June 30, 2020, the Company owned 102 retail operating properties in the United States representing 20.0 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 Gaiden
Vice President – Capital Markets and Investor Relations
Retail Properties of America, Inc.       
(630) 634-4233

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SOURCE Retail Properties of America, Inc.