Toggle SGML Header (+)


Section 1: 10-Q (10-Q)

Document
false--12-31Q22019false000084218300P3Y85800011680000.010.011200000001200000007973400079816000797340007981600020000010000057600060000P5Y70000014000000.07250.072550500.010.0120000002000000184900018490001849000184900063000006000000.0740.0690.2180.2370.2150.2270.0260.0210.0230.01712710.0011890.00P2Y10M6DP2Y6M18DP2Y6MP6M0.977 0000842183 2019-01-01 2019-06-30 0000842183 2019-07-26 0000842183 us-gaap:SeriesDPreferredStockMember 2019-01-01 2019-06-30 0000842183 us-gaap:CommonStockMember 2019-01-01 2019-06-30 0000842183 2018-12-31 0000842183 2019-06-30 0000842183 us-gaap:SeriesDPreferredStockMember 2019-06-30 0000842183 us-gaap:SeriesDPreferredStockMember 2018-01-01 2018-12-31 0000842183 us-gaap:SeriesDPreferredStockMember 2018-12-31 0000842183 2019-04-01 2019-06-30 0000842183 2018-01-01 2018-06-30 0000842183 2018-04-01 2018-06-30 0000842183 rpt:RecoveryIncomefromTenantsMember 2018-04-01 2018-06-30 0000842183 us-gaap:RealEstateOtherMember 2019-04-01 2019-06-30 0000842183 us-gaap:RealEstateOtherMember 2018-04-01 2018-06-30 0000842183 us-gaap:RealEstateOtherMember 2018-01-01 2018-06-30 0000842183 us-gaap:ManagementServiceMember 2018-01-01 2018-06-30 0000842183 us-gaap:ManagementServiceMember 2018-04-01 2018-06-30 0000842183 rpt:RecoveryIncomefromTenantsMember 2019-01-01 2019-06-30 0000842183 us-gaap:RealEstateOtherMember 2019-01-01 2019-06-30 0000842183 us-gaap:ManagementServiceMember 2019-01-01 2019-06-30 0000842183 rpt:RecoveryIncomefromTenantsMember 2019-04-01 2019-06-30 0000842183 rpt:RecoveryIncomefromTenantsMember 2018-01-01 2018-06-30 0000842183 us-gaap:ManagementServiceMember 2019-04-01 2019-06-30 0000842183 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-03-31 0000842183 us-gaap:CommonStockMember 2018-06-30 0000842183 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-06-30 0000842183 us-gaap:NoncontrollingInterestMember 2018-03-31 0000842183 us-gaap:NoncontrollingInterestMember 2019-06-30 0000842183 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000842183 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-04-01 2018-06-30 0000842183 2018-03-31 0000842183 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000842183 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-04-01 2019-06-30 0000842183 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-03-31 0000842183 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000842183 us-gaap:CommonStockMember 2018-03-31 0000842183 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000842183 us-gaap:PreferredStockMember 2018-06-30 0000842183 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000842183 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000842183 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000842183 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-06-30 0000842183 us-gaap:CommonStockMember 2019-06-30 0000842183 us-gaap:CommonStockMember 2019-03-31 0000842183 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000842183 us-gaap:PreferredStockMember 2018-03-31 0000842183 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000842183 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000842183 us-gaap:PreferredStockMember 2019-03-31 0000842183 2019-03-31 0000842183 2018-06-30 0000842183 us-gaap:PreferredStockMember 2019-06-30 0000842183 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-06-30 0000842183 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000842183 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000842183 us-gaap:NoncontrollingInterestMember 2019-03-31 0000842183 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000842183 us-gaap:NoncontrollingInterestMember 2018-06-30 0000842183 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0000842183 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-06-30 0000842183 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-06-30 0000842183 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-01-01 2018-06-30 0000842183 us-gaap:NoncontrollingInterestMember 2018-12-31 0000842183 2019-01-01 0000842183 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000842183 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000842183 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-01-01 2019-06-30 0000842183 us-gaap:NoncontrollingInterestMember 2018-01-01 0000842183 2017-12-31 0000842183 us-gaap:CommonStockMember 2017-12-31 0000842183 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-12-31 0000842183 us-gaap:NoncontrollingInterestMember 2017-12-31 0000842183 us-gaap:CommonStockMember 2019-01-01 2019-06-30 0000842183 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0000842183 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0000842183 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0000842183 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-01-01 0000842183 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2017-12-31 0000842183 2018-01-01 0000842183 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000842183 us-gaap:NoncontrollingInterestMember 2019-01-01 0000842183 us-gaap:CommonStockMember 2018-01-01 2018-06-30 0000842183 us-gaap:PreferredStockMember 2018-12-31 0000842183 us-gaap:PreferredStockMember 2017-12-31 0000842183 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000842183 us-gaap:CommonStockMember 2018-12-31 0000842183 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-01-01 0000842183 rpt:ShoppingCentersMember 2019-06-30 0000842183 rpt:RealEstateJointVentureMember rpt:ShoppingCentersMember 2019-06-30 0000842183 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0000842183 srt:RestatementAdjustmentMember 2018-04-01 2018-06-30 0000842183 srt:RestatementAdjustmentMember 2018-01-01 2018-06-30 0000842183 us-gaap:AccountingStandardsUpdate201602Member 2019-06-30 0000842183 2018-01-01 2018-12-31 0000842183 rpt:IncomeProducingPropertyDispositionsMember rpt:TheShoppesatFoxRiverMember 2019-01-01 2019-06-30 0000842183 rpt:IncomeProducingPropertyDispositionsMember rpt:EastTownPlazaMember 2019-01-01 2019-06-30 0000842183 rpt:OutparcelDispositionsMember rpt:TheatreParcelHartlandTownSquareMember 2019-01-01 2019-06-30 0000842183 rpt:IncomeProducingPropertyDispositionsMember rpt:EastTownPlazaMember 2019-06-30 0000842183 rpt:IncomeProducingPropertyDispositionsMember 2019-06-30 0000842183 rpt:OutparcelDispositionsMember 2019-01-01 2019-06-30 0000842183 rpt:IncomeProducingPropertyDispositionsMember 2019-01-01 2019-06-30 0000842183 rpt:IncomeProducingPropertyDispositionsMember rpt:TheShoppesatFoxRiverMember 2019-06-30 0000842183 rpt:OutparcelDispositionsMember rpt:TheatreParcelHartlandTownSquareMember 2019-06-30 0000842183 rpt:OutparcelDispositionsMember 2019-06-30 0000842183 rpt:LeasingFeeMember rpt:UnconsolidatedJointVenturesMember 2019-04-01 2019-06-30 0000842183 rpt:UnconsolidatedJointVenturesMember 2018-01-01 2018-06-30 0000842183 rpt:UnconsolidatedJointVenturesMember 2018-04-01 2018-06-30 0000842183 us-gaap:ManagementServiceMember rpt:UnconsolidatedJointVenturesMember 2019-04-01 2019-06-30 0000842183 rpt:LeasingFeeMember rpt:UnconsolidatedJointVenturesMember 2018-01-01 2018-06-30 0000842183 rpt:ManagementFeeMember rpt:UnconsolidatedJointVenturesMember 2018-04-01 2018-06-30 0000842183 rpt:ManagementFeeMember rpt:UnconsolidatedJointVenturesMember 2019-01-01 2019-06-30 0000842183 us-gaap:ManagementServiceMember rpt:UnconsolidatedJointVenturesMember 2019-01-01 2019-06-30 0000842183 rpt:ManagementFeeMember rpt:UnconsolidatedJointVenturesMember 2018-01-01 2018-06-30 0000842183 rpt:ManagementFeeMember rpt:UnconsolidatedJointVenturesMember 2019-04-01 2019-06-30 0000842183 us-gaap:ManagementServiceMember rpt:UnconsolidatedJointVenturesMember 2018-04-01 2018-06-30 0000842183 rpt:UnconsolidatedJointVenturesMember 2019-01-01 2019-06-30 0000842183 rpt:LeasingFeeMember rpt:UnconsolidatedJointVenturesMember 2018-04-01 2018-06-30 0000842183 rpt:UnconsolidatedJointVenturesMember 2019-04-01 2019-06-30 0000842183 us-gaap:ManagementServiceMember rpt:UnconsolidatedJointVenturesMember 2018-01-01 2018-06-30 0000842183 rpt:LeasingFeeMember rpt:UnconsolidatedJointVenturesMember 2019-01-01 2019-06-30 0000842183 rpt:JointVentureOneMember 2019-06-30 0000842183 rpt:JointVentureThreeMember 2019-06-30 0000842183 rpt:JointVentureTwoMember 2019-06-30 0000842183 rpt:FixedRateMortgageDebtMember 2019-06-30 0000842183 us-gaap:JuniorSubordinatedDebtMember 2019-04-30 2019-04-30 0000842183 us-gaap:JuniorSubordinatedDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-06-30 0000842183 us-gaap:RevolvingCreditFacilityMember rpt:UnsecuredTermLoanDue2023Member us-gaap:UnsecuredDebtMember 2019-06-30 0000842183 us-gaap:RevolvingCreditFacilityMember rpt:UnsecuredTermLoanDue2020Member us-gaap:UnsecuredDebtMember 2019-01-01 2019-06-30 0000842183 us-gaap:RevolvingCreditFacilityMember rpt:UnsecuredTermLoanDue2021Member us-gaap:UnsecuredDebtMember 2019-01-01 2019-06-30 0000842183 us-gaap:RevolvingCreditFacilityMember 2019-06-30 0000842183 us-gaap:RevolvingCreditFacilityMember rpt:UnsecuredTermLoanDue2021Member us-gaap:UnsecuredDebtMember 2019-06-30 0000842183 us-gaap:RevolvingCreditFacilityMember rpt:UnsecuredTermLoanDue2023Member us-gaap:UnsecuredDebtMember 2019-01-01 2019-06-30 0000842183 us-gaap:RevolvingCreditFacilityMember rpt:UnsecuredTermLoanDue2020Member us-gaap:UnsecuredDebtMember 2019-06-30 0000842183 us-gaap:JuniorSubordinatedDebtMember 2019-04-30 0000842183 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.57Due2027Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.72Due2029Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes3.75Due2021Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.30Due2026Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.05Due2024Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes3.75Due2021Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.05Due2024Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.12Due2023Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.74Due2026Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.65Due2024Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.27Due2025Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.12Due2023Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.09Due2025Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.09Due2025Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.16Due2024Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes3.64Due2028Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes3.64Due2028Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.16Due2024Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.28Due2026Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.27Due2025Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.57Due2027Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.20Due2025Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.20Due2025Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.65Due2024Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.30Due2026Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.72Due2029Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.13Due2022Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 rpt:SeniorUnsecuredNotes4.13Due2022Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.28Due2026Member us-gaap:SeniorNotesMember 2018-12-31 0000842183 rpt:SeniorUnsecuredNotes4.74Due2026Member us-gaap:SeniorNotesMember 2019-06-30 0000842183 us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2019-06-30 0000842183 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2018-12-31 0000842183 us-gaap:RevolvingCreditFacilityMember rpt:UnsecuredTermLoanDue2020Member us-gaap:UnsecuredDebtMember 2018-12-31 0000842183 us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2018-12-31 0000842183 us-gaap:RevolvingCreditFacilityMember rpt:UnsecuredTermLoanDue2021Member us-gaap:UnsecuredDebtMember 2018-12-31 0000842183 us-gaap:RevolvingCreditFacilityMember rpt:UnsecuredTermLoanDue2023Member us-gaap:UnsecuredDebtMember 2018-12-31 0000842183 us-gaap:MortgagesMember 2019-06-30 0000842183 rpt:WestOaksIIandSpringMeadowsPlaceMember us-gaap:MortgagesMember 2019-06-30 0000842183 rpt:NagawaukeeIIMember us-gaap:MortgagesMember 2018-12-31 0000842183 rpt:BridgewaterFallsShoppingCenterMember us-gaap:MortgagesMember 2019-06-30 0000842183 us-gaap:MortgagesMember 2018-12-31 0000842183 rpt:WestOaksIIandSpringMeadowsPlaceMember us-gaap:MortgagesMember 2018-12-31 0000842183 rpt:TheShopsonLaneAvenueMember us-gaap:MortgagesMember 2019-06-30 0000842183 rpt:NagawaukeeIIMember us-gaap:MortgagesMember 2019-06-30 0000842183 rpt:TheShopsonLaneAvenueMember us-gaap:MortgagesMember 2018-12-31 0000842183 rpt:BridgewaterFallsShoppingCenterMember us-gaap:MortgagesMember 2018-12-31 0000842183 us-gaap:OtherAssetsMember 2019-06-30 0000842183 us-gaap:OtherLiabilitiesMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0000842183 us-gaap:OtherAssetsMember 2018-12-31 0000842183 us-gaap:OtherLiabilitiesMember 2019-06-30 0000842183 us-gaap:OtherLiabilitiesMember 2018-12-31 0000842183 us-gaap:OtherAssetsMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0000842183 us-gaap:OtherAssetsMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0000842183 us-gaap:OtherLiabilitiesMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0000842183 rpt:FixedRateMortgageDebtMember 2018-12-31 0000842183 rpt:FloatingRateDebtMember 2019-04-30 0000842183 rpt:FloatingRateDebtMember 2019-06-30 0000842183 rpt:FloatingRateDebtMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0000842183 rpt:FixedRateMortgageDebtMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0000842183 rpt:FixedRateMortgageDebtMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0000842183 rpt:FixedRateMortgageDebtMember 2019-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember 2018-04-01 2018-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember us-gaap:InterestExpenseMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-04-01 2018-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsAssetsMember us-gaap:InterestExpenseMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-04-01 2018-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember 2019-04-01 2019-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsAssetsMember us-gaap:InterestExpenseMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2019-04-01 2019-06-30 0000842183 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-04-01 2018-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember us-gaap:InterestExpenseMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2019-04-01 2019-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsAssetsMember 2019-04-01 2019-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsAssetsMember 2018-04-01 2018-06-30 0000842183 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2019-04-01 2019-06-30 0000842183 rpt:InterestRateContractFourMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000842183 rpt:InterestRateContractFiveMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000842183 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000842183 rpt:InterestRateContractSixMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000842183 rpt:InterestRateContractThreeMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000842183 rpt:InterestRateContractSevenMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000842183 rpt:InterestRateContractTwoMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000842183 rpt:InterestRateContractOneMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember us-gaap:InterestExpenseMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-01-01 2018-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember us-gaap:InterestExpenseMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2019-01-01 2019-06-30 0000842183 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-01-01 2018-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember 2019-01-01 2019-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember 2018-01-01 2018-06-30 0000842183 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2019-01-01 2019-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsAssetsMember 2019-01-01 2019-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsAssetsMember us-gaap:InterestExpenseMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-01-01 2018-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsAssetsMember us-gaap:InterestExpenseMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2019-01-01 2019-06-30 0000842183 us-gaap:DerivativeFinancialInstrumentsAssetsMember 2018-01-01 2018-06-30 0000842183 rpt:NonrecoverableOperatingExpenseMember 2019-04-01 2019-06-30 0000842183 us-gaap:GeneralAndAdministrativeExpenseMember 2019-04-01 2019-06-30 0000842183 rpt:NonrecoverableOperatingExpenseMember 2019-01-01 2019-06-30 0000842183 rpt:NonrecoverableOperatingExpenseMember 2018-04-01 2018-06-30 0000842183 us-gaap:GeneralAndAdministrativeExpenseMember 2018-04-01 2018-06-30 0000842183 rpt:NonrecoverableOperatingExpenseMember 2018-01-01 2018-06-30 0000842183 us-gaap:GeneralAndAdministrativeExpenseMember 2018-01-01 2018-06-30 0000842183 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-06-30 0000842183 us-gaap:SeriesDPreferredStockMember 2019-04-01 2019-06-30 0000842183 us-gaap:SeriesDPreferredStockMember 2019-01-01 2019-06-30 0000842183 us-gaap:PerformanceSharesMember 2018-01-01 2018-06-30 0000842183 us-gaap:SeriesDPreferredStockMember 2018-04-01 2018-06-30 0000842183 us-gaap:PerformanceSharesMember 2018-04-01 2018-06-30 0000842183 us-gaap:SeriesDPreferredStockMember 2018-01-01 2018-06-30 0000842183 rpt:PartnershipUnitsMember 2019-01-01 2019-06-30 0000842183 us-gaap:PerformanceSharesMember 2019-04-01 2019-06-30 0000842183 rpt:PartnershipUnitsMember 2019-04-01 2019-06-30 0000842183 rpt:PartnershipUnitsMember 2018-01-01 2018-06-30 0000842183 us-gaap:PerformanceSharesMember 2019-01-01 2019-06-30 0000842183 rpt:PartnershipUnitsMember 2018-04-01 2018-06-30 0000842183 us-gaap:StockCompensationPlanMember 2019-01-01 2019-06-30 0000842183 rpt:InducementPlanMember 2019-06-30 0000842183 us-gaap:RestrictedStockMember 2018-04-01 2018-06-30 0000842183 srt:MinimumMember rpt:EmployeeMember us-gaap:RestrictedStockMember 2019-01-01 2019-06-30 0000842183 us-gaap:StockCompensationPlanMember 2019-04-01 2019-06-30 0000842183 us-gaap:StockCompensationPlanMember 2018-04-01 2018-06-30 0000842183 us-gaap:RestrictedStockMember 2019-01-01 2019-06-30 0000842183 srt:MaximumMember rpt:EmployeeMember us-gaap:RestrictedStockMember 2019-01-01 2019-06-30 0000842183 us-gaap:StockCompensationPlanMember 2018-01-01 2018-06-30 0000842183 rpt:OmnibusLongTermIncentivePlan2019Member 2019-06-30 0000842183 us-gaap:RestrictedStockMember 2018-01-01 2018-06-30 0000842183 rpt:OmnibusLongTermIncentivePlan2012Member 2019-01-01 2019-06-30 0000842183 rpt:TrusteeMember us-gaap:RestrictedStockMember 2019-01-01 2019-06-30 0000842183 rpt:InducementPlanMember 2019-01-01 2019-06-30 0000842183 us-gaap:RestrictedStockMember 2019-04-01 2019-06-30 0000842183 rpt:OmnibusLongTermIncentivePlan2019Member 2019-01-01 2019-06-30 0000842183 us-gaap:StockCompensationPlanMember 2019-06-30 0000842183 srt:MaximumMember 2019-01-01 2019-06-30 0000842183 srt:MinimumMember 2019-01-01 2019-06-30 0000842183 srt:MaximumMember us-gaap:StockCompensationPlanMember 2018-01-01 2018-06-30 0000842183 srt:MinimumMember us-gaap:StockCompensationPlanMember 2018-01-01 2018-06-30 0000842183 srt:MinimumMember us-gaap:StockCompensationPlanMember 2018-06-30 0000842183 srt:MaximumMember us-gaap:StockCompensationPlanMember 2018-06-30 0000842183 us-gaap:OneTimeTerminationBenefitsMember 2018-04-01 2018-06-30 0000842183 us-gaap:OneTimeTerminationBenefitsMember 2019-04-01 2019-06-30 0000842183 us-gaap:OneTimeTerminationBenefitsMember 2019-01-01 2019-06-30 0000842183 us-gaap:OneTimeTerminationBenefitsMember 2018-01-01 2018-06-30 iso4217:USD rpt:joint_venture iso4217:USD xbrli:shares utreg:acre rpt:property rpt:land xbrli:shares utreg:sqft xbrli:pure rpt:office rpt:option rpt:plan



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
Form 10-Q
 
  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES ACT OF 1934
 
For the quarterly period ended June 30, 2019
 
Commission file number 1-10093
 
RPT Realty
(Exact name of registrant as specified in its charter)
 
Maryland
 
13-6908486
(State of other jurisdiction of incorporation or organization)
 
(I.R.S Employer Identification Numbers)
 
 
 
 
19 W 44th Street,
Suite 1002
 
 
New York,
New York
 
10036
(Address of principal executive offices)
 
(Zip Code)

(212) 221-1261
(Registrant’s telephone number, including area code) 

Securities Registered Pursuant to Section 12(b) of the Act:
 
Title of Each Class
 
Trading Symbol(s)
 
Name of Each Exchange
On Which Registered
Common Shares of Beneficial Interest, ($0.01 Par Value Per Share)
 
RPT
 
New York Stock Exchange
7.25% Series D Cumulative Convertible Perpetual Preferred
 
RPT.PRD
 
New York Stock Exchange
Shares of Beneficial Interest ($0.01 Par Value Per Share)
 
 


Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.
Yes                          No 
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes                          No 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes                          No 

Number of common shares of beneficial interest ($0.01 par value) of the registrant outstanding as of July 26, 2019: 80,360,451




INDEX
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Page 2





PART 1 – FINANCIAL INFORMATION
Item 1.  Unaudited Condensed Consolidated Financial Statements
RPT REALTY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
 
 
 
 
 
June 30,
2019
 
December 31,
2018
 
(unaudited)
 
 
ASSETS
 
 
 
Income producing properties, at cost:
 
 
 
Land
$
361,973

 
$
373,490

Buildings and improvements
1,605,354

 
1,652,283

Less accumulated depreciation and amortization
(364,314
)
 
(358,195
)
Income producing properties, net
1,603,013

 
1,667,578

Construction in progress and land available for development
49,597

 
53,222

Net real estate
1,652,610

 
1,720,800

Equity investments in unconsolidated joint ventures
1,492

 
1,572

Cash and cash equivalents
47,072

 
41,064

Restricted cash and escrows
4,274

 
3,658

Accounts receivable (net of allowance for doubtful accounts of $1,168 and $858 as of June 30, 2019 and December 31, 2018, respectively)
22,203

 
23,802

Acquired lease intangibles, net
38,096

 
44,432

Operating lease right-of-use assets
17,425

 

Other assets, net
90,722

 
93,112

TOTAL ASSETS
$
1,873,894

 
$
1,928,440

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 

 
 

Notes payable, net
$
934,223

 
$
963,149

Finance lease obligation
975

 
975

Accounts payable and accrued expenses
48,356

 
56,355

Distributions payable
19,766

 
19,728

Acquired lease intangibles, net
43,648

 
48,647

Operating lease liabilities
16,188

 

Other liabilities
7,274

 
8,043

TOTAL LIABILITIES
1,070,430

 
1,096,897

 
 
 
 
Commitments and Contingencies


 


 
 
 
 
RPT Realty ("RPT") Shareholders' Equity:
 
 

Preferred shares, $0.01 par, 2,000 shares authorized: 7.25% Series D Cumulative Convertible Perpetual Preferred Shares, (stated at liquidation preference $50 per share), 1,849 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
92,427

 
92,427

Common shares of beneficial interest, $0.01 par, 120,000 shares authorized, 79,816 and 79,734 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
798

 
797

Additional paid-in capital
1,167,060

 
1,164,848

Accumulated distributions in excess of net income
(475,819
)
 
(450,130
)
Accumulated other comprehensive income
42

 
4,020

TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO RPT
784,508

 
811,962

Noncontrolling interest
18,956

 
19,581

TOTAL SHAREHOLDERS' EQUITY
803,464

 
831,543

 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
1,873,894

 
$
1,928,440

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

Page 3





RPT REALTY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share amounts)
(Unaudited)
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019

2018
REVENUE
 
 
 
 
 
 
 
Rental income
$
56,641

 
$
68,872

 
$
114,999

 
$
130,690

Other property income
681

 
1,047

 
1,980

 
1,861

Management and other fee income
39

 
48

 
90

 
134

TOTAL REVENUE
57,361

 
69,967

 
117,069

 
132,685

 
 
 
 
 
 
 
 
EXPENSES
 
 
 
 
 

 
 

Real estate taxes
8,722

 
10,602

 
18,544

 
20,759

Recoverable operating expense
5,343

 
6,141

 
12,024

 
12,947

Non-recoverable operating expense
2,709

 
1,759

 
5,199

 
3,471

Depreciation and amortization
20,628

 
23,457

 
39,847

 
44,569

Acquisition costs

 
233

 

 
233

General and administrative expense
6,530

 
12,730

 
12,596

 
17,906

Provision for impairment

 
216

 

 
216

TOTAL EXPENSES
43,932

 
55,138

 
88,210

 
100,101

 
 
 
 
 
 
 
 
OPERATING INCOME
13,429

 
14,829

 
28,859

 
32,584

 
 
 
 
 
 
 
 
OTHER INCOME AND EXPENSES
 
 
 
 
 

 
 

Other (expense) income, net
(123
)
 
(68
)
 
(231
)
 
185

Gain on sale of real estate
371

 
181

 
6,073

 
181

Earnings from unconsolidated joint ventures
26

 
202

 
80

 
273

Interest expense
(10,084
)
 
(10,708
)
 
(20,433
)
 
(21,309
)
Loss on extinguishment of debt
(622
)
 

 
(622
)
 

INCOME BEFORE TAX
2,997

 
4,436

 
13,726

 
11,914

Income tax provision
(35
)
 
(33
)
 
(71
)
 
(51
)
NET INCOME
2,962

 
4,403

 
13,655

 
11,863

Net income attributable to noncontrolling partner interest
(69
)
 
(101
)
 
(319
)
 
(275
)
NET INCOME ATTRIBUTABLE TO RPT
2,893

 
4,302

 
13,336

 
11,588

Preferred share dividends
(1,675
)
 
(1,675
)
 
(3,350
)
 
(3,350
)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
$
1,218

 
$
2,627

 
$
9,986

 
$
8,238

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE
 
 
 
 
 

 
 

Basic
$
0.01

 
$
0.03

 
$
0.12

 
$
0.10

Diluted
$
0.01

 
$
0.03

 
$
0.12

 
$
0.10

 
 
 
 
 


 


WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
 
 
 
 
 

 
 

Basic
79,764

 
79,519

 
79,754

 
79,471

Diluted
80,156

 
79,621

 
80,148


79,574

 
 
 
 
 
 
 
 
Cash Dividend Declared per Common Share
$
0.22

 
$
0.22

 
$
0.44

 
$
0.44

 
 
 
 
 
 
 
 
OTHER COMPREHENSIVE INCOME
 
 
 
 
 

 
 

Net income
$
2,962

 
$
4,403

 
$
13,655

 
$
11,863

Other comprehensive gain (loss):
 
 
 
 
 

 
 

(Loss) gain on interest rate swaps
(2,534
)
 
922

 
(4,073
)
 
3,364

Comprehensive income
428

 
5,325

 
9,582

 
15,227

Comprehensive income attributable to noncontrolling interest
(10
)
 
(122
)
 
(224
)
 
(354
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RPT
$
418

 
$
5,203

 
$
9,358

 
$
14,873


The accompanying notes are an integral part of these condensed consolidated financial statements.

Page 4





RPT REALTY
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
For the Three Months Ended June 30, 2019 and June 30, 2018
(In thousands)
(Unaudited)
 
 
 
 
 
 
 
Shareholders' Equity of RPT Realty
 
 
 
 
 
Preferred
Shares
 
Common
Shares
 
Additional
Paid-in Capital
 
Accumulated Distributions in Excess of Net Income
 
Accumulated Other Comprehensive Income
 
Noncontrolling Interest
 
Total Shareholders’ Equity
Balance, March 31, 2019
$
92,427

 
$
798

 
$
1,166,048

 
$
(459,365
)
 
$
2,517

 
$
19,366

 
$
821,791

Issuance of common shares, net of issuance costs

 

 
(94
)
 

 

 

 
(94
)
Share-based compensation, net of shares withheld for employee taxes

 

 
1,106

 

 

 

 
1,106

Dividends declared to common shareholders

 

 

 
(17,556
)
 

 

 
(17,556
)
Dividends declared to preferred shareholders

 

 

 
(1,675
)
 

 

 
(1,675
)
Distributions declared to noncontrolling interests

 

 

 

 

 
(420
)
 
(420
)
Dividends declared to deferred shares

 

 

 
(116
)
 

 

 
(116
)
Other comprehensive income adjustment

 

 

 

 
(2,475
)
 
(59
)
 
(2,534
)
Net income

 

 

 
2,893

 

 
69

 
2,962

Balance, June 30, 2019
$
92,427

 
$
798

 
$
1,167,060

 
$
(475,819
)
 
$
42

 
$
18,956

 
$
803,464

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, March 31, 2018
$
92,427

 
$
795

 
$
1,161,252

 
$
(402,512
)
 
$
5,243

 
$
20,703

 
$
877,908

Issuance of common shares, net of issuance costs

 

 
(25
)
 

 

 

 
(25
)
Share-based compensation, net of shares withheld for employee taxes

 

 
2,132

 

 

 

 
2,132

Dividends declared to common shareholders

 

 

 
(17,497
)
 

 

 
(17,497
)
Dividends declared to preferred shareholders

 

 

 
(1,675
)
 

 

 
(1,675
)
Distributions declared to noncontrolling interests

 

 

 

 

 
(422
)
 
(422
)
Dividends declared to deferred shares

 

 

 
(144
)
 

 

 
(144
)
Other comprehensive income adjustment

 

 

 

 
900

 
22

 
922

Net income

 

 

 
4,302

 

 
101

 
4,403

Balance, June 30, 2018
$
92,427

 
$
795

 
$
1,163,359

 
$
(417,526
)
 
$
6,143

 
$
20,404

 
$
865,602


The accompanying notes are an integral part of these condensed consolidated financial statements.

Page 5





RPT REALTY
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
For the Six Months Ended June 30, 2019 and June 30, 2018
(In thousands)
(Unaudited)
 
 
 
 
 
 
 
Shareholders' Equity of RPT Realty
 
 
 
 
 
Preferred
Shares
 
Common
Shares
 
Additional
Paid-in Capital
 
Accumulated Distributions in Excess of Net Income
 
Accumulated Other Comprehensive Income
 
Noncontrolling Interest
 
Total Shareholders’ Equity
Balance, December 31, 2018
$
92,427

 
$
797

 
$
1,164,848

 
$
(450,130
)
 
$
4,020

 
$
19,581

 
$
831,543

Adoption of ASU 2016-02

 

 

 
(325
)
 

 
(8
)
 
(333
)
Issuance of common shares, net of issuance costs

 

 
(94
)
 

 

 

 
(94
)
Share-based compensation, net of shares withheld for employee taxes

 
1

 
2,306

 

 

 

 
2,307

Dividends declared to common shareholders

 

 

 
(35,102
)
 

 

 
(35,102
)
Dividends declared to preferred shareholders

 

 

 
(3,350
)
 

 

 
(3,350
)
Distributions declared to noncontrolling interests

 

 

 

 

 
(841
)
 
(841
)
Dividends declared to deferred shares

 

 

 
(248
)
 

 

 
(248
)
Other comprehensive income adjustment

 

 

 

 
(3,978
)
 
(95
)
 
(4,073
)
Net income

 

 

 
13,336

 

 
319

 
13,655

Balance, June 30, 2019
$
92,427

 
$
798

 
$
1,167,060

 
$
(475,819
)
 
$
42

 
$
18,956

 
$
803,464

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2017
$
92,427

 
$
794

 
$
1,160,862

 
$
(392,619
)
 
$
2,858

 
$
20,847

 
$
885,169

Adoption of ASU 2017-05

 

 

 
2,109

 

 
51

 
2,160

Issuance of common shares, net of issuance costs

 

 
(25
)
 

 

 

 
(25
)
Redemption of OP unit holders

 

 

 
(2
)
 

 
(5
)
 
(7
)
Share-based compensation, net of shares withheld for employee taxes

 
1

 
2,522

 

 

 

 
2,523

Dividends declared to common shareholders

 

 

 
(34,981
)
 

 

 
(34,981
)
Dividends declared to preferred shareholders

 

 

 
(3,350
)
 

 

 
(3,350
)
Distributions declared to noncontrolling interests

 

 

 

 

 
(843
)
 
(843
)
Dividends declared to deferred shares

 

 

 
(271
)
 

 

 
(271
)
Other comprehensive income adjustment

 

 

 

 
3,285

 
79

 
3,364

Net income

 

 

 
11,588

 

 
275

 
11,863

Balance, June 30, 2018
$
92,427

 
$
795

 
$
1,163,359

 
$
(417,526
)
 
$
6,143

 
$
20,404

 
$
865,602


The accompanying notes are an integral part of these condensed consolidated financial statements.


Page 6





RPT REALTY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 
 
Six Months Ended June 30,
 
2019
 
2018
OPERATING ACTIVITIES
 
 
 
Net income
$
13,655

 
$
11,863

Adjustments to reconcile net income to net cash provided by operating activities:
 

 
 

Depreciation and amortization
39,847

 
44,569

Amortization of deferred financing fees
718

 
760

Income tax provision
71

 
51

Earnings from unconsolidated joint ventures
(80
)
 
(273
)
Distributions received from operations of unconsolidated joint ventures
154

 
481

Provision for impairment

 
216

Loss on extinguishment of debt
622

 

Gain on sale of real estate
(6,073
)
 
(181
)
Amortization of premium on mortgages, net
(484
)
 
(518
)
Service-based restricted share expense
1,979

 
2,886

Long-term incentive cash and equity compensation expense
807

 
666

Changes in assets and liabilities:
 

 
 

Accounts receivable, net
1,781

 
1,974

Acquired lease intangibles and other assets, net
(2,703
)
 
(1,958
)
Accounts payable, acquired lease intangibles and other liabilities
(12,983
)
 
(6,561
)
Net cash provided by operating activities
37,311

 
53,975

 
 
 
 
INVESTING ACTIVITIES
 

 
 

Acquisition of real estate

 
(6,365
)
Development and capital improvements
(28,956
)
 
(43,914
)
Net proceeds from sales of real estate
67,863

 
1,354

Investment in unconsolidated joint ventures

 
3,000

Net cash provided by (used in) investing activities
38,907

 
(45,925
)
 
 
 
 
FINANCING ACTIVITIES
 

 
 

Repayments of mortgages and notes payable
(29,417
)
 
(1,267
)
Proceeds on revolving credit facility

 
45,000

Repayments on revolving credit facility

 
(15,000
)
Proceeds, net of costs, from issuance of common stock
(94
)
 
(25
)
Redemption of operating partnership units for cash

 
(7
)
Shares used for employee taxes upon vesting of awards
(580
)
 
(651
)
Dividends paid to preferred shareholders
(3,350
)
 
(3,350
)
Dividends paid to common shareholders and deferred shares
(35,312
)
 
(35,185
)
Distributions paid to operating partnership unit holders
(841
)
 
(843
)
Net cash used in financing activities
(69,594
)
 
(11,328
)
 
 
 
 
Net change in cash, cash equivalents and restricted cash
6,624

 
(3,278
)
Cash, cash equivalents and restricted cash at beginning of period
44,722

 
12,891

Cash, cash equivalents and restricted cash at end of period
$
51,346

 
$
9,613


The accompanying notes are an integral part of these condensed consolidated financial statements.

Page 7





RPT REALTY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 
 
Six Months Ended June 30,
 
2019
 
2018
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
 

 
 

Cash paid for interest (net of capitalized interest of $60 and $576 in 2019 and 2018, respectively)
$
20,599

 
$
18,383

Deferred gain recognized in equity
$

 
$
2,160


 
As of June 30,
Reconciliation of cash, cash equivalents and restricted cash
2019
 
2018
Cash and cash equivalents
$
47,072

 
$
5,252

Restricted cash and escrows
4,274

 
4,361

 
$
51,346

 
$
9,613


The accompanying notes are an integral part of these condensed consolidated financial statements.

Page 8





RPT REALTY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1.  Organization and Basis of Presentations

Organization

RPT Realty, together with its subsidiaries (the “Company” or “RPT”), is a real estate investment trust (“REIT”) engaged in the business of owning and operating a national portfolio of dynamic open-air shopping destinations principally located in the top U.S. markets. The Company's locally-curated consumer experience reflects the lifestyles of its diverse neighborhoods and match the modern expectation of its retail partners. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange under the ticker symbol RPT. As of June 30, 2019, the Company's portfolio consisted of 49 shopping centers (including one shopping center owned through a joint venture) representing 11.9 million square feet.  As of June 30, 2019, the Company’s aggregate portfolio was 95.0% leased.

Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of the Company and our majority owned subsidiary, the operating partnership, RPT Realty, L.P. (the “OP”) (97.7% owned by the Company at June 30, 2019 and December 31, 2018), and all wholly-owned subsidiaries, including entities in which we have a controlling financial interest.

We have elected to be a REIT for federal income tax purposes.  All intercompany balances and transactions have been eliminated in consolidation.  The information furnished is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature.  These condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018.

The preparation of our unaudited financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited financial statements and the reported amounts of revenues and expenses during the reporting period.  We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and reported amounts that are not readily apparent from other sources.  Actual results could differ from those estimates.

Reclassifications

Certain amounts in the prior period have been reclassified in order to conform with the current period’s presentation. The Company reclassified $0.7 million and $1.4 million, respectively, of expense associated with property related employee compensation and benefits from General and administrative expense to Non-recoverable operating expense for the three and six months ended June 30, 2018.

Recently Adopted Accounting Pronouncements

In June 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-07, “Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which expanded the scope of Topic 718, Compensation-Stock Compensation (which previously only included share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees is now substantially aligned. This standard became effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The adoption of this standard did not have a material impact on our consolidated financial statements.


Page 9





In February 2016, the FASB updated ASC Topic 842 “Leases” (“ASU 2016-02”). ASU 2016-02 requires lessees to record operating and financing leases as assets and liabilities on the balance sheet and lessors to expense costs that are not incremental direct leasing costs. In addition, the following ASUs were subsequently issued related to ASC Topic 842, all of which were effective with ASU 2016-02:

In January 2018, the FASB issued ASU 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842”. The standard provides an optional transition practical expedient for the adoption of ASU 2016-02 that, if elected, does not require an organization to reconsider its accounting for existing land easements that are not currently accounted for under the old leases standard.
In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases,” which affects narrow aspects of the guidance issued in the amendments in ASU 2016-02.
In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606) and certain criteria are met. The guidance also provides an optional transition method which would allow entities to initially apply the new guidance in the period of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings, if necessary.
In December 2018, the FASB issued ASU 2018-20, “Leases (Topic 842): Narrow-Scope Improvements for Lessors,” which addresses specific issues in the leasing guidance, including sales taxes and other similar taxes collected from lessees, certain lessor costs paid directly by lessees, and recognition of variable payments for contracts with lease and non-lease components.

This standard became effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has elected the practical expedients allowable under ASU 2018-01 and ASU 2018-11, which included the optional transition method permitting January 1, 2019 to be its initial application date. On January 1, 2019, the Company elected the single component practical expedient, which requires a lessor, by class of underlying asset, not to allocate the total consideration to the lease and non-lease components based on their relative stand-alone selling prices. This single component practical expedient requires the Company to account for the lease component and non-lease component(s) associated with that lease as a single component if (i) the timing and pattern of transfer of the lease component and the non-lease component(s) associated with it are the same and (ii) the lease component would be classified as an operating lease if it were accounted for separately. If these criteria are met, and the lease component is predominant, the lease is accounted for under ASC 842. As a result of this assessment, minimum rent and recovery income from the lease of real estate assets that qualify for this expedient are accounted for as a single component under ASC 842, with recovery income primarily as variable consideration. The Company’s operating leases commencing or modified after January 1, 2019, for which the Company is the lessor, qualify for the single component practical expedient accounting under ASC 842. Based on the Company’s election of available practical expedients, the Company’s existing operating leases whereby it is the lessor continue to be accounted for as operating leases under ASC 842.
However, ASC 842 changed certain requirements regarding lease classification for lessors that could result in the Company classifying certain future leases transacted or modified subsequent to adoption of the standard, particularly long-term ground leases, as sales-type or direct financing leases as opposed to operating leases.

Prior to the adoption of ASC 842, the Company recognized tenant recovery income regardless of whether the third party was paid by the lessor or lessee. Effective January 1, 2019, such tenant recoveries are only recognized to the extent that the Company pays the third party directly and are classified as rental income on the Company’s condensed consolidated income statement. Under ASC 842, lessors are required to continually assess collectibility of lessee payments and, if operating lease payments are not probable of collection, to only recognize into income the lesser of (i) straight-line rental income or (ii) lease payments received to date. Additionally, only incremental direct leasing costs are now capitalized under this new guidance, and the Company recognized a cumulative effect adjustment of approximately $0.3 million to shareholders' equity, primarily related to certain costs associated with unexecuted leases that were deferred as of the adoption date.

For leases where the Company is a lessee, primarily the Company’s ground lease and administrative office leases, the Company recorded an operating lease liability of $16.6 million and a operating lease right-of-use asset of $18.0 million upon adoption, which were initially measured at the present value of future lease payments. The right-of-use asset was recorded net of our existing straight-line rent liability and ground lease intangible asset. The present value of future lease payments was discounted using our incremental borrowing rate on a collateralized basis over a similar term in a similar environment. For leases with a term of 12 months or less, the Company has made a policy election to not recognize lease liabilities and lease assets. For our existing ground and office operating leases, we have continued to recognize straight-line rent expense within non-recoverable operating expenses and general and administrative expenses, respectively, within our condensed consolidated statement of operations.

Page 10





Recent Accounting Pronouncements

In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement,” which amends ASC 820, Fair Value Measurement. ASU 2018-13 modified the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. This standard is effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04 “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-04 is not expected to have a material impact on our consolidated financial statements.

In June 2016, the FASB updated Accounting Standards Codification (“ASC”) Topic 326 “Financial Instruments - Credit Losses” with ASU 2016-13 “Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 enhances the methodology of measuring expected credit losses to include the use of forward-looking information to better inform credit loss estimates. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within that fiscal year. In addition, in November 2018 the FASB issued ASU 2018-19, which clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leases standard. The adoption of ASU 2016-13 is not expected to have a material impact on our consolidated financial statements.

2.  Real Estate

Included in our net real estate assets are income producing properties that are recorded at cost less accumulated depreciation and amortization, construction in progress and land available for development.

We review our investment in real estate, including any related intangible assets, for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of the property may not be recoverable.  These changes in circumstances include, but are not limited to, changes in occupancy, rental rates, net operating income, real estate values and expected holding period.

For the three and six months ended June 30, 2019 we recorded no impairment provision. For the three and six months ended June 30, 2018, we recorded an impairment provision totaling $0.2 million on a land parcel. The 2018 adjustment was triggered by higher costs related to this parcel. To estimate fair value, we use discounted cash flow models that include assumptions of the discount rates that market participants would use in pricing an asset or market pricing from potential or comparable transactions.

Land available for development includes real estate projects where vertical construction has yet to commence, but which have been identified by us and are available for future development when market conditions dictate the demand for a new shopping center or outparcel pad. The viability of all projects under construction or development is regularly evaluated under applicable accounting requirements, including requirements relating to abandonment of assets or changes in use.  Land available for development was $28.5 million and $29.5 million at June 30, 2019 and December 31, 2018, respectively.

Construction in progress represents existing development, redevelopment and tenant build-out projects.  When projects are substantially complete and ready for their intended use, balances are transferred to land or building and improvements as appropriate.  Construction in progress was $21.1 million and $23.7 million at June 30, 2019 and December 31, 2018, respectively. The decrease in construction in progress from December 31, 2018 to June 30, 2019 was due primarily to the completion of ongoing expansion projects and property dispositions, partially offset by capital expenditures for ongoing projects.

Pursuant to the criteria established under ASC Topic 360 we classify properties as held for sale when executed purchase and sales agreement contingencies have been satisfied thereby signifying that the sale is legally binding and probable of closing within one year of the reporting date. As of June 30, 2019, and December 31, 2018, we had no properties and no land parcels classified as held for sale.

Page 11





3.  Property Acquisitions and Dispositions

Acquisitions

There were no acquisitions in the six months ended June 30, 2019.

Dispositions

The following table provides a summary of our disposition activity in the six months ended June 30, 2019:
 
 
 
 
 
 
 
 
 
 
Gross
Property Name
 
Location
 
GLA
 
Acreage

 
Date Sold
 
Sales Price
 
Gain on Sale
 
 
 
 
(in thousands)

 
 
 
 
 
(In thousands)
East Town Plaza
 
Madison, WI
 
217

 
N/A

 
02/20/19
 
$
13,500

 
$
1,169

The Shoppes at Fox River
 
Waukesha, WI
 
332

 
N/A

 
03/06/19
 
55,000

 
4,533

Total income producing dispositions
 
549

 
N/A

 
 
 
$
68,500

 
$
5,702

 
 
 
 
 
 
 
 
 
 
 
 
 
Hartland - Outparcel
 
Hartland, MI
 
N/A

 
1.1

 
06/28/19
 
$
875

 
$
371

Total outparcel dispositions
 

 
1.1

 
 
 
$
875

 
$
371

 
 
 
 
 
 
 
 
 
 
 
 
 
Total dispositions
 
 
 
549

 
1.1

 
 
 
$
69,375

 
$
6,073

 
 
 
 
 
 
 
 
 
 
 
 
 


4.  Equity Investments in Unconsolidated Joint Ventures

We are an investor in three joint venture agreements: 1) Ramco/Lion Venture LP, 2) Ramco 450 Venture LLC, and 3) Ramco HHF NP LLC, whereby we own 7%, 20%, and 30%, respectively, of the equity in each joint venture. We and the joint venture partners have joint approval rights for major decisions, including those regarding property operations.  We cannot make significant decisions without our partner’s approval.  Accordingly, we account for our interest in the joint ventures using the equity method of accounting.

The combined condensed financial information for our unconsolidated joint ventures is summarized as follows:
Balance Sheets
 
June 30, 2019
 
December 31, 2018
 
 
(In thousands)
ASSETS
 
 
 
 
Investment in real estate, net
 
$
22,373

 
$
22,591

Other assets
 
1,551

 
2,099

Total Assets
 
$
23,924

 
$
24,690

LIABILITIES AND OWNERS' EQUITY
 
 

 
 

Total liabilities
 
$
113

 
$
525

Owners' equity
 
23,811

 
24,165

Total Liabilities and Owners' Equity
 
$
23,924

 
$
24,690

 
 
 
 
 
RPT's equity investments in unconsolidated joint ventures
 
$
1,492

 
$
1,572

 
 
 
 
 



Page 12





 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Statements of Operations
 
2019
 
2018
 
2019
 
2018
 
 
(In thousands)
 
(In thousands)
Total revenue
 
$
688

 
$
1,235

 
$
1,482

 
$
2,422

Total expenses 
 
385

 
867

 
781

 
1,615

Net income
 
$
303

 
$
368

 
$
701

 
$
807

 
 
 
 
 
 
 
 
 
RPT's share of earnings from unconsolidated joint ventures
 
$
26

 
$