INVESTOR UPDATE UNLESS OTHERWISE INDICATED, ALL RPT FINANCIAL INFORMATION IS PRESENTED ON A CONSOLIDATED BASIS AND IS AS OF OR FOR THE QUARTER ENDED DECEMBER 31, 2019. ALL DEMOGRAPHIC DATA IS SOURCED FROM ESRI, UNLESS OTHERWISE NOTED. FOOTNOTES AND DEFINITIONS ARE INCLUDED AT THE END OF THE UPDATE. RECONCILIATIONS OF NON-GAAP METRICS CAN BE COMPANY’S FOUND ON THE WEBSITE AT INVESTORS.RPTREALTY.COM OR BY FOLLOWING THIS LINK: 4Q 2019 INVESTOR PRESENTATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
This document 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 (“Exchange Act”) . 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, including, among others: economic, business and financial conditions, and changes in the Company’s industry and changes in the real estate markets in particular, economic and other developments in markets where the Company has a high concentration of properties, the Company’s business strategy, the Company’s projected operating results, bankruptcy or insolvency of a key tenant or a significant number of smaller tenants, adverse impact of e-commerce developments and shifting consumer retail behavior on tenants, interest rates or operating costs, the potential discontinuation of LIBOR, the Company’s leverage, the Company’s ability to generate sufficient cash flows to service outstanding indebtedness and make distributions to shareholders, general volatility of the capital and credit markets and the market price of the Company’s common shares, risks generally associated with real estate acquisitions and dispositions, including the Company’s ability to identify and pursue acquisition and disposition opportunities, risks generally associated with redevelopment, including the impact of construction delays and cost overruns and the Company’s ability to lease redeveloped space and identify and pursue redevelopment opportunities, risks generally associated with joint ventures, the Company’s ability to enter into new leases or renew leases on favorable terms, the Company’s ability to create long-term shareholder value, the Company’s ability to continue to qualify as a REIT, regulatory changes and other risk factors, including those detailed in the sections of the Company’s most recent Forms 10-K and 10-Q filed with the SEC titled “Risk Factors. ” 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.
R2G joint venture accelerates portfolio transformation ✓ Closed joint venture (“R 2 G”) with GIC in 4Q19 and received $118.3 million in gross proceeds providing ample liquidity to fund future acquisitions ✓ Received future commitments of up to $200 million for GIC’s 48.5% share of potential acquisitions ✓ Cultivated an acquisition pipeline of almost $500 million in high-growth target markets for both the wholly-owned and our joint venture portfolio Fourth quarter closes out a strong year ✓ Same property NOI growth of 3.9% in 4Q19 ✓ Sector-leading same property NOI growth of 4.1% for full year 2019 ✓ Blended releasing spreads on comparable leases were 12.3% with an ABR PSF of $20.96 in 4Q19 ✓ Increased small shop occupancy to 87.4%, up 270 basis points year over year and 170 basis points sequentially Balance sheet primed for offense and defense ✓ Closed on $710 million of refinancing activity in 4Q19 ✓ Ended 2019 with $464 million of liquidity including $115 million of cash (1) and unused revolving line of credit ✓ Extended average debt maturity by over one year to 5.7 years and reduced debt maturities through 2022 to 10% of our total debt ✓ Entered into swap contracts in February 2020 that fixed the LIBOR component on $100 million of notional value at a weighted average fixed interest rate of 1.28%, reducing our floating rate exposure to zero percent Enhanced corporate governance to deliver sustained performance ✓ Since September 2018, RPT has elected three new Trustees who diversify and complement the experience and backgrounds of the existing Board ✓ One of only a few REITs with equal or greater representation of women and men on the independent board ✓ Reduced average Trustee tenure to just over 6 years from over 18 years since Fall 2018 ✓ Investing resources and capital into several ESG initiatives and adopting GRESB standards to measure our performance
COMPANY SNAPSHOT
COMPANY SNAPSHOT RPT owns and operates high-quality, open-air shopping centers principally located in the top U.S. metro areas # OF NYSE TICKER TOTAL ENTERPRISE VALUE TOTAL SQUARE FEET PROPERTIES (1) OPEN-AIR SHOPPING ABR IN TOP GROCERY/GROCER DIVIDEND YIELD (2) CENTERS (3) 40 MSAs COMPONENT (4)
COMPANY SNAPSHOT PRO-RATA LEASED PRO-RATA NET DEBT TO PRO-RATA ABR PSF RATE PRO-RATA ANNUALIZED SAME PROPERTY NOI PROFORMA ADJUSTED GROWTH EBITDA (2) PRO-RATA PRO-RATA ABR OCCUPANCY IN TOP 40 MSAs SAME PROPERTY TOTAL LIQUIDITY BASE RENT GROWTH (1) (3) PRO-RATA BLENDED FLOATING RATE PRO-RATA 3-MILE SAME PROPERTY RENT SPREADS HOUSEHOLD INCOME DEBT EXPOSURE OPERATING EXPENSE RECOVERY RATIO (1) DEBT MATURING PRO-RATA SMALL THROUGH 2022 PRO-RATA SHOP (including principal 3-MILE POPULATION OPERATING FFO/SHARE OCCUPANCY amortization) 6
COMPANY SNAPSHOT Guidance Assumption 2020 Guidance Same Property NOI Growth 2.5%-3.5% G&A Expense $24.5-$26.5 $100.0-$150.0 Acquisitions Dispositions $36.0 $1.07-$1.11 Operating FFO Per Share Represents guidance previously provided in our earnings release or earnings call. We have not updated or affirmed that guidance or any of the supporting assumptions and are not doing so by restating them herein $ in millions except per share
WHY INVEST IN RPT?
WHY INVEST IN RPT? Since June 2018, the new management team has quickly repositioned the organization and portfolio to achieve consistent and sustainable growth Optimized organizational structure Diversified board composition Improved portfolio quality through Enhanced focus on ESG initiatives $200 million of non-core dispositions Strengthened balance sheet and Partnered with a leading sovereign liquidity wealth fund
WHY INVEST IN RPT? 40.0% 33.3% 30.0% Outperformance of 17.8% since 19.8% 6/15/18 20.0% Indexed to 6/15/18 10.0% 15.5% 0.0% -10.0% -20.0% 6/15/18 9/15/18 12/15/18 3/15/19 6/15/19 9/15/19 12/15/19 RPT SNL U.S. REIT Retail Shopping Ctr S&P 500 10 10
RETURNING TO GROWTH # 1 in improvement in occupancy Top quartile blended re-leasing spreads in 2019 16.0% 14.6% 2019 Rent Spread - Total Comparable 3.0% 2.6% 14.0% 2.5% Total Occupancy chnage y/y 2.0% 12.0% 10.9% 10.7% 1.4% 1.5% 1.0% 0.9% 9.2% 10.0% 0.8% 0.7% 1.0% 8.5% 8.1% 8.0% 7.9% 0.4% 7.5% 0.2% 0.5% 8.0% 6.3% 0.0% 6.0% -0.5% -1.0% 4.0% -1.1% -1.5% 2.0% -1.6% -2.0% RPT RPAI KRG BRX SITC KIM WRI ROIC FRT REG 0.0% ROIC BRX RPT KRG REG RPAI FRT KIM WRI SITC ROIC is y/y change in leased rate as they did not provide an occupancy rate in 4Q18 # 1 in same property NOI growth in 2019 Top quartile same property NOI growth outlook 3.50% 3.25% 3.00% 4.5% 2020 Same property NOI growth 4.1% 3.00% 4.0% 3.6% 3.6% 2.50% 2.50% 2019 Same property NOI guidance – midpoint (2) 3.4% 2.50% 3.5% 3.0% 2.9% 2.00% 3.0% 2.7% 2.00% 1.75% growth (1) 2.5% 2.2% 1.50% 2.0% 2.0% 1.50% 2.0% 1.00% 1.5% 1.00% 0.75% 1.0% 0.50% 0.5% 0.00% 0.00% 0.0% BRX RPT SITC ROIC WRI KIM KRG FRT RPAI REG RPT SITC ROIC BRX KIM FRT RPAI KRG WRI REG
WHY INVEST IN RPT? RPT’s peer relative price-to-consensus FFO multiple has improved materially, but remains below the peer average, which we think offers investors significant upside as we execute on our growth initiatives 30.0 1.0 0.9 25.0 NTM PRICE TO CONSENSUS FFO 0.8 0.7 20.0 0.6 NTM P/FFO 15.0 0.5 0.4 10.0 0.3 0.2 5.0 0.1 0.0 0.0 2/21/20 3/6/15 6/6/15 9/6/15 12/6/15 3/6/16 6/6/16 9/6/16 12/6/16 3/6/17 6/6/17 9/6/17 12/6/17 3/6/18 6/6/18 9/6/18 12/6/18 3/6/19 6/6/19 9/6/19 12/6/19 (1) (2) New RPT RPT Peer AVG Top Quartile Peer AVG Source: S&P Market Intelligence, Capital IQ, estimate data reflects consensus averages
WHY INVEST IN RPT? (1) (2) (3)
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