Retail Properties Of America, Inc. Announces That Nearly 95% Of Its 2017 Retail Disposition Goals Are Closed, Under Contract Or In LOI

OAK BROOK, Ill., July 10, 2017 /PRNewswire/ -- Retail Properties of America, Inc. (NYSE: RPAI) (the "Company") announces substantial progress towards the completion of its target market strategy.

Year to date, the Company has total disposition activity of $718.0 million and total acquisition activity of $147.6 million, both within expected pricing ranges. In addition, the Company continued to execute on its critical capital markets initiatives to allow for maximum balance sheet flexibility as it nears the completion of its strategic plan.

2017 Disposition Highlights:

• Completed $414.8 million of dispositions, which included the sale of 17 non-target multi-tenant retail assets for $367.2 million and six single-user retail assets for $30.1 million and one single-user parcel for $17.5 million;
• Average retail annualized base rent (ABR) per square foot of $13.11;
• Retail weighted average household income of $76,000 and weighted average population of 53,000 within a three-mile radius;
• Completed multi-tenant retail exit from five states and 11 non-target markets:
• States: Alabama, Colorado, Louisiana, New Mexico and Ohio;
• Markets: Auburn-Opelika, Birmingham-Hoover and Tuscaloosa, Alabama; Boulder, Colorado; Augusta-Richmond County and Gainesville, Georgia; Houma-Thibodaux, Louisiana; Santa Fe, New Mexico; Albany-Schenectady-Troy, New York; Akron, Ohio; and Hilton Head Island-Bluffton-Beaufort, South Carolina; and
• Under contract to sell 10 non-target multi-tenant retail assets for $198.3 million and has letters of intent (LOIs) to sell $104.9 million of dispositions, which includes five non-target multi-tenant retail assets for $94.4 million and two single-user retail assets for $10.5 million. These transactions are expected to close throughout 2017, subject to satisfaction of customary closing conditions and, for those transactions subject to an LOI, negotiations of definitive agreements consistent with the LOIs.

2017 Acquisition Highlights:

• Completed $121.9 million of acquisitions, which included the following:
• Main Street Promenade, Chicago metropolitan statistical area (MSA), $88.0 million;
• New Hyde Park, New York MSA, $22.1 million;
• Additional phases at One Loudoun Downtown, Washington, D.C. MSA, $9.8 million;
• Fee interest at Boulevard at the Capital Centre, Washington, D.C. MSA, $2.0 million;
• Acquisition highlights include the following:
• Average ABR per square foot of $37.69;
• Weighted average household income of $133,000 and weighted average population of 109,000 within a three-mile radius;
• Strengthened its multi-tenant retail footprint in its target markets by approximately 240,000 square feet; and
• Remains under contract for the remaining phases at One Loudoun Downtown, representing an aggregate gross purchase price of up to $25.7 million. These transactions are expected to close, subject to satisfaction of customary closing conditions, during the third quarter of 2017 as the seller completes construction on stand-alone buildings at the property.

2017 Capital Markets Highlights:

• Defeased the $379.4 million IW JV cross-collateralized portfolio of mortgages payable that was scheduled to mature in 2019 and had an interest rate of 7.50%. In connection with this transaction, the Company incurred approximately $60.2 million in defeasance costs. The fair value of these mortgages was approximately $45.1 million higher than the outstanding principal balance as of December 31, 2016;
• Drew the full balance of a seven-year $200.0 million senior unsecured term loan (Term Loan Due 2023) with an interest rate of London Interbank Offered Rate (LIBOR) plus a credit spread of between 1.70% and 2.55%, based on the Company's leverage ratio;
• Entered into two interest rate swap agreements to effectively fix the interest rate on the Term Loan Due 2023 at 1.26% plus a credit spread through November 2018; and
• Repurchased 6.0 million shares of common stock under the Company's stock repurchase program at an average price per share of $12.55 for a total of approximately $75.7 million.

ABOUT RPAI
Retail Properties of America, Inc. is a REIT that owns and operates high quality, strategically located shopping centers in the United States. As of March 31, 2017, the Company owned 149 retail operating properties representing 25.4 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 – Capital Markets & Investor Relations
Retail Properties of America, Inc.
(630) 634-4233

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SOURCE Retail Properties of America, Inc.