Successful Dispositions Reflect Continued Execution of RPAI’s Strategic Plan
OAK BROOK, Ill.--(BUSINESS WIRE)-- Retail Properties of America, Inc. (NYSE: RPAI) today announced that, as part of its strategic initiative to enhance its balance sheet through the disposition of non-core and non-strategic assets, it has completed the sale of 18 non-core and non-strategic assets with a gross sales price of $190 million during the third quarter of 2012. Proceeds from the transactions were used to repay $133 million in related mortgage debt with additional net proceeds further reducing leverage. As of October 1, all 2012 debt maturities have been addressed.
“These divestitures reflect the continued execution of our strategic plans to strengthen our portfolio by focusing on multi-tenant retail and to enhance our balance sheet, in order to deliver long-term value for our shareholders,” stated Steve Grimes, president and chief executive officer for RPAI. “We are committed to taking the necessary steps to reduce RPAI’s leverage and overall risk profile in order to strengthen the balance sheet and create additional financial flexibility. We will continue to move forward with our plan to execute on opportunities to dispose of non-core and non-strategic assets through the remainder of the year. We are confident that these steps will position us to see further operational improvement in 2013 and beyond.”
The 2.2 million square feet sold during the quarter includes a 13-asset Mervyns portfolio for $100 million, the Cost-Plus Distribution Center in Stockton, California for $63 million, and other non-core and non-strategic assets totaling $27 million. Year to date, the company has completed $227 million of asset sales.
Retail Properties of America, Inc. is a fully integrated, self-administered and self-managed real estate company that owns and operates high quality, strategically located shopping centers across 35 states. The company is one of the largest owners and operators of shopping centers in the United States. 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.
The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as “may,” “expect,” “continue,” “remains,” “intend,” “aim,” “should,” “prospects,” “could,” “future,” “potential,” “believes,” “plans,” “likely,” “anticipate,” and “probable,” or the negative thereof or other variations thereon or comparable terminology, constitute “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, and are subject to the safe harbors created thereby. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company’s operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to, general economic, business and financial conditions, changes in the Company’s industry and changes in the real estate markets in particular, market demand for and pricing of the Company’s common stock, general volatility of the capital and credit markets, competitive and cost factors, the ability of the Company to enter into new leases or renew leases on favorable terms, defaults on, early terminations of or non-renewal of leases by tenants, bankruptcy or insolvency of a major tenant or a significant number of smaller tenants, the effects of declining real estate valuations and impairment charges on the Company’s operating results, increased interest rates and operating costs, decreased rental rates or increased vacancy rates, the uncertainties of real estate acquisitions, dispositions and redevelopment activity, the Company’s failure to successfully execute its non-core disposition program and capital recycling efforts, the Company’s ability to create long-term shareholder value, the Company’s ability to manage its growth effectively, the availability, terms and deployment of capital, regulatory changes and other risk factors, including those detailed in the sections of the Company’s most recent Form 10-K and Form 10-Qs filed with the SEC titled “Risk Factors”. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Retail Properties of America, Inc.
Director – Investor Relations
Source: Retail Properties of America, Inc.