Retail Value Inc. (NYSE: RVI) today announced operating results
for the quarter and year ended December 31, 2021.
Financial Results for the Quarter
- Fourth quarter 2021 net income attributable to common
shareholders was $27.7 million, or $1.31 per diluted share, as
compared to net loss of $9.5 million, or $0.48 per diluted share,
in the year-ago period. The period-over-period increase in net
income is primarily attributable to higher gain on disposition of
real estate, lower impairment charges and lower interest expense
due to the debt repayment partly offset by the impact of asset
sales.
- Fourth quarter 2021 operating funds from operations
attributable to common shareholders (“Operating FFO” or “OFFO”) was
a loss of $0.1 million, or $0.00 per diluted share, compared to
income of $14.8 million, or $0.75 per diluted share, in the
year-ago period. The period-over-period decrease in OFFO is
primarily attributable to the impact of asset sales and lower
interest expense. Fourth quarter results included $0.5 million of
net revenue related to prior periods primarily from cash basis
tenants.
Financial Results for the Year
- Net loss attributable to common shareholders for the year ended
December 31, 2021 was $17.7 million, or $0.84 per diluted share
which compares to net loss of $93.6 million, or $4.72 per diluted
share for the full year 2020.
- Generated Operating FFO of $52.1 million, or $2.48 per diluted
share for the full year of 2021, which compares to $61.8 million,
or $3.12 per diluted share for the full year 2020.
Significant Fourth Quarter and Recent Transaction
Activity
- In October 2021, the Company sold a portfolio of five assets in
the continental U.S. for a gross sale price of $264.0 million.
- In October 2021, the Company paid a distribution on the
Company’s Series A Preferred Shares (the “RVI Preferred Shares”) in
the aggregate amount of $190.0 million.
- In October 2021, the Company paid a cash dividend of $22.04 per
common share ($465.4 million in the aggregate).
- In December 2021, the Company sold Green Ridge Square in Grand
Rapids, Michigan and Willowbrook Plaza in Houston, Texas for an
aggregate sales price of $60.4 million.
- In December 2021, the Company repurchased all of the
outstanding RVI Preferred Shares from SITE Centers Corp. (“SITE
Centers”) for an aggregate purchase price of $1.00.
- On December 15, 2021, the Company entered into an External
Management Agreement with affiliates of SITE Centers which
specifies the responsibilities and fees applicable to managing the
Company’s remaining property (Crossroads Centers located in
Gulfport, Mississippi, which is subject to a ground lease) and
administering a wind-up of the Company’s operations. The External
Management Agreement took effect on January 1, 2022.
- In January 2022, the Company paid a cash dividend of $3.27 per
common share ($69.1 million in the aggregate).
Significant Full-Year Activity
- Sold 21 shopping centers for an aggregate gross sales price of
$933.6 million.
- Repaid the outstanding balance on the Company’s mortgage loan.
Upon repayment of the mortgage loan, the Company’s Revolving Credit
Agreement also terminated.
- The sale of the Puerto Rico assets is reflected as
“discontinued operations” on the Company’s financial statements on
a retrospective basis.
Key Fourth Quarter Operating Results
The operating metrics as of December 31, 2021, for the Company’s
remaining property (Crossroads Center in Gulfport, Mississippi,
which is subject to a ground lease) are as follows:
Gross Leasable Area - Owned
(thousands)
555
Annualized Base Rent PSF
$13.47
Leased Rate
92.1%
Commenced Rate
91.2%
Impact of the COVID-19 Pandemic
- At December 31, 2021, the balance sheet reflects $0.5 million
of net deferred rents outstanding for tenants with payment plans
that are not accounted for on the cash basis. This includes
balances due from tenants at sold properties.
About RVI
RVI is an independent publicly traded company trading under the
ticker symbol “RVI” on the New York Stock Exchange. RVI owns one
property in the continental U.S. and is managed by one or more
subsidiaries of SITE Centers Corp. RVI focuses on realizing value
in its business through operations and sales of its assets.
Additional information about RVI is available at
www.retailvalueinc.com.
Non-GAAP Measures
Funds from Operations (“FFO”) is a supplemental non-GAAP
financial measure used as a standard in the real estate industry
and is a widely accepted measure of real estate investment trust
(“REIT”) performance. Management believes that both FFO and
Operating FFO provide additional indicators of the financial
performance of a REIT. The Company also believes that FFO and
Operating FFO more appropriately measure the core operations of the
Company and provide benchmarks to its peer group.
FFO is generally defined and calculated by the Company as net
income (loss) (computed in accordance with generally accepted
accounting principles in the United States (“GAAP”)) adjusted to
exclude (i) gains and losses from disposition of real estate
property and related investments, which are presented net of taxes,
if any, (ii) impairment charges on real estate property and related
investments and (iii) certain non-cash items. These non-cash items
principally include real property depreciation and amortization of
intangibles. The Company’s calculation of FFO is consistent with
the definition of FFO provided by NAREIT. The Company calculates
Operating FFO by excluding certain non-operating charges and
income. Operating FFO is useful to investors as the Company removes
non-comparable charges and income to analyze the results of its
operations and assess performance of the core operating real estate
portfolio. Other real estate companies may calculate FFO and
Operating FFO in a different manner.
The Company also uses net operating income (“NOI”), a non-GAAP
financial measure, as a supplemental performance measure. NOI is
calculated as property revenues less property-related expenses. The
Company believes NOI provides useful information to investors
regarding the Company’s financial condition and results of
operations because it reflects only those income and expense items
that are incurred at the property level and, when compared across
periods, reflects the impact on operations from trends in occupancy
rates, rental rates, operating costs and acquisition and
disposition activity on an unleveraged basis.
FFO, Operating FFO and NOI do not represent cash generated from
operating activities in accordance with GAAP, are not necessarily
indicative of cash available to fund cash needs and should not be
considered as alternatives to net income computed in accordance
with GAAP as indicators of the Company’s operating performance or
as alternatives to cash flow as a measure of liquidity.
Reconciliations of these non-GAAP measures to their most directly
comparable GAAP measures are included in this release herein.
Safe Harbor
RVI considers portions of the information in this press release
to be forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, both as amended, with respect to the
Company's expectation for future periods. Although the Company
believes that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, it can give no
assurance that its expectations will be achieved. For this purpose,
any statements contained herein that are not historical fact may be
deemed to be forward-looking statements. There are a number of
important factors that could cause our results to differ materially
from those indicated by such forward-looking statements, including,
among other factors, the impact of the COVID-19 pandemic on our
ability to manage our properties and finance our operations and on
tenants’ ability to operate their businesses, generate sales and
meet their financial obligations, including the obligation to pay
rent; our ability to sell the remaining property on commercially
reasonable terms; property damage, expenses related thereto and
other business and economic consequences (including the potential
loss of rental revenues) resulting from extreme weather conditions
and natural disasters affecting our remaining property, and the
ability to estimate accurately the amounts thereof; sufficiency and
timing of any insurance recovery payments related to damages from
extreme weather conditions and natural disasters; local conditions
such as an increase in the supply of, or a reduction in demand for,
retail real estate in the area; the impact of e-commerce;
dependence on rental income from real property; the loss of,
significant downsizing of or bankruptcy of a major tenant and the
impact of any such event on rental income from other tenants at our
remaining property; impairment charges; the ability to secure and
maintain management services provided to us, including pursuant to
our external management agreement with one or more subsidiaries of
SITE Centers; and our ability to maintain our REIT status. For
additional factors that could cause the results of the Company to
differ materially from those indicated in the forward-looking
statements, please refer to the Company’s most recent report on
Form 10-K. The impacts of the COVID-19 pandemic may also exacerbate
the risks described therein, any of which could have a material
effect on the Company. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof.
Retail Value Inc.
Income Statement
in thousands, except per share
4Q21
4Q20
12M21
12M20
Revenues:
Rental income (1)
$5,382
$17,124
$55,603
$81,781
Straight-line rent (1)
0
194
0
(1,089)
Other property revenues
17
14
55
45
5,399
17,332
55,658
80,737
Expenses:
Operating and maintenance
801
2,513
7,286
11,460
Property Management fees
674
850
2,750
3,899
Real estate taxes
404
3,079
8,966
15,957
1,879
6,442
19,002
31,316
Net operating income (1)
3,520
10,890
36,656
49,421
Other income (expense):
Asset management fees
(731)
(997)
(3,156)
(4,630)
Interest expense, net
0
(3,537)
(7,899)
(18,334)
Depreciation and amortization
(1,090)
(5,666)
(17,217)
(28,395)
General and administrative
(582)
(751)
(3,577)
(3,612)
Impairment charges
0
(10,910)
(1,573)
(54,370)
Debt extinguishment costs, net
0
(1,456)
(6,307)
(5,873)
Other income, net
0
0
0
0
Gain on disposition of real estate,
net
27,714
1,754
29,596
23,710
Income (loss) before other items
28,831
(10,673)
26,523
(42,083)
Tax benefit (expense)
45
(674)
(148)
(858)
Income (loss) from continuing
operations
28,876
(11,347)
26,375
(42,941)
(Loss) income from discontinued operations
(2)
(1,212)
1,851
(44,074)
(50,613)
Net income (loss)
$27,664
($9,496)
($17,699)
($93,554)
Weighted average shares – Basic &
Diluted – EPS
21,117
19,829
21,062
19,806
Basic and Diluted:
Income (loss) per common share –
Continuing operations
$1.37
$(0.57)
$1.25
$(2.17)
(Loss) income per common share –
Discontinued operations
(0.06)
0.09
(2.09)
(2.55)
Net income (loss) per common
share
$1.31
$(0.48)
$(0.84)
$(4.72)
(1)
Activity for Crossroads Center:
Uncollectible revenue (included in rental
income)
$8
($10)
$353
($613)
Straight-line rent
(16)
(16)
(73)
(34)
Net operating income
1,490
1,273
5,818
5,269
(2)
Puerto Rico segment classified as a
"discontinued operation" for financial reporting purposes on a
retrospective basis. See additional detail on page 6.
Retail Value Inc.
Other Financial Information
in thousands, except per share
4Q21
4Q20
12M21
12M20
Net income (loss) attributable to
Common Shareholders
$27,664
($9,496)
($17,699)
($93,554)
Depreciation and amortization of real
estate
1,090
12,559
33,675
56,986
Impairment of real estate
0
10,910
82,633
115,525
Gain on disposition of real estate,
net
(28,855)
(844)
(54,542)
(22,800)
FFO attributable to Common
Shareholders
($101)
$13,129
$44,067
$56,157
Debt extinguishment, transaction, other,
net
0
1,695
8,061
5,671
Operating FFO attributable to Common
Shareholders
($101)
$14,824
$52,128
$61,828
Weighted average shares and units –
Basic & Diluted – FFO & OFFO
21,117
19,829
21,062
19,806
FFO per share – Basic &
Diluted
$0.00
$0.66
$2.09
$2.84
Operating FFO per share – Basic &
Diluted
$0.00
$0.75
$2.48
$3.12
Common stock dividends declared, per
share
$25.31
$1.16
$25.31
$1.16
Certain non-cash items (including
properties reported as discontinued operations):
Loan cost amortization
0
(786)
(1,923)
(3,602)
Capital expenditures (including
properties reported as discontinued operations):
Maintenance capital expenditures
608
551
2,425
1,685
Tenant allowances and landlord work
595
1,954
4,150
5,183
Leasing commissions - SITE Centers
(14)
762
1,687
2,755
Leasing commissions - external
59
53
557
278
Hurricane restorations
(1)
1,456
2,420
11,343
Retail Value Inc.
Other Financial Information
in thousands, except per share
Continental U.S.
4Q21
4Q20
12M21
12M20
Revenues:
Minimum rents
$2,992
$11,987
$34,633
$58,881
Ground lease minimum rents
171
861
2,602
4,247
Percentage and overage rent
45
44
320
294
Recoveries
1,551
4,554
13,601
22,535
Uncollectible revenue
538
(353)
3,711
(6,631)
Ancillary and other rental income
85
140
589
781
Lease termination fees
0
85
147
585
Other property revenues
17
14
55
45
5,399
17,332
55,658
80,737
Expenses:
Operating and maintenance
801
2,513
7,286
11,460
Property management fees
674
850
2,750
3,899
Real estate taxes
404
3,079
8,966
15,957
1,879
6,442
19,002
31,316
Net operating income
3,520
10,890
36,656
49,421
Other income (expense):
Asset management fees
(731)
(997)
(3,156)
(4,630)
Interest expense, net
0
(3,537)
(7,899)
(18,334)
Depreciation and amortization
(1,090)
(5,666)
(17,217)
(28,395)
General and administrative (not allocated
to segment)
N/A
N/A
N/A
N/A
Impairment charges
0
(10,910)
(1,573)
(54,370)
Debt extinguishment costs, net
0
(1,456)
(6,307)
(5,873)
Other expense, net
Gain on disposition of real estate, net
(1)
27,714
1,754
29,596
23,710
Tax benefit (expense)
45
(674)
(148)
(858)
Net income (loss)
$29,458
($10,596)
$29,952
($39,329)
(1)
SITE Centers disposition fees for assets
sold
3,244
21
3,587
2,642
Puerto Rico (Discontinued
Operations)
4Q21
4Q20
12M21
12M20
Revenues:
Minimum rents
$170
$14,122
$34,390
$58,325
Ground lease minimum rents
0
1,946
4,472
8,008
Percentage and overage rent
(56)
796
1,984
2,025
Recoveries
120
6,491
15,037
24,621
Uncollectible revenue
83
(2,387)
1,400
(9,927)
Ancillary and other rental income
7
1,846
3,844
5,962
Lease termination fees
0
0
3,097
19
Other property revenues
(17)
(15)
0
38
307
22,799
64,224
89,071
Expenses:
Operating and maintenance
312
8,030
19,349
29,343
Property management fees
1,404
1,583
5,937
6,060
Real estate taxes
19
1,153
2,827
4,795
1,735
10,766
28,113
40,198
Net operating (loss) income
(1,428)
12,033
36,111
48,873
Other income (expense):
Asset management fees
(890)
(1,006)
(3,626)
(4,023)
Interest expense, net
0
(1,078)
(2,055)
(4,408)
Depreciation and amortization
0
(6,909)
(16,503)
(28,658)
General and administrative (not allocated
to segment)
N/A
N/A
N/A
N/A
Impairment charges
0
0
(81,060)
(61,155)
Debt extinguishment costs, net
0
(49)
(1,951)
(49)
Other expense, net
0
(190)
197
251
Gain on disposition of real estate, net
(1)
1,141
(910)
24,946
(910)
Tax expense
(35)
(40)
(133)
(534)
Net (loss) income
($1,212)
$1,851
($44,074)
($50,613)
(1)
SITE Centers disposition fees for assets
sold
0
500
5,749
500
Retail Value Inc.
Balance Sheet
$ in thousands
At Period End
4Q21
4Q20
Assets:
Land
$0
$106,708
Buildings
51,261
421,401
Fixtures and tenant improvements
8,260
68,795
59,521
596,904
Depreciation
(36,195)
(253,565)
23,326
343,339
Construction in progress
0
321
Real estate, net
23,326
343,660
Cash
110,470
56,849
Restricted cash
1,993
115,939
Receivables and straight-line (1)
3,891
15,007
Intangible assets, net (2)
1,098
9,452
Other assets, net (3)
3,620
5,767
Assets related to discontinued
operations
0
649,202
Total Assets
144,398
1,195,876
Liabilities and Equity:
Secured debt
0
258,795
Dividends payable
69,053
23,002
Other liabilities (4)
8,331
25,848
Liabilities related to discontinued
operations
0
98,445
Total Liabilities
77,384
406,090
Redeemable preferred equity
0
190,000
Common shares
2,112
1,983
Paid-in capital
740,517
721,234
Distributions in excess of net income
(675,602)
(123,428)
Common shares in treasury at cost
(13)
(3)
Total Equity
67,014
599,786
Total Liabilities and Equity
$144,398
$1,195,876
All amounts include Discontinued
Operation assets:
(1)
Tenant receivables, net - continental
U.S.
693
N/A
Tenant receivables, net - Puerto Rico
841
N/A
SL rents (including fixed CAM), net -
continental U.S.
287
N/A
Property insurance receivable
906
N/A
Other receivables
1,164
N/A
(2)
Operating lease right of use asset
1,098
N/A
(3)
Note receivable
3,000
N/A
(4)
Operating lease liabilities
2,126
N/A
Below-market leases, net
0
N/A
Prior year footnote amounts are not
presented due to impact of discontinued operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220225005025/en/
Christa Vesy, EVP and Chief Financial Officer 216-755-5500
Grafico Azioni Retail Value (NYSE:RVI)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Retail Value (NYSE:RVI)
Storico
Da Giu 2023 a Giu 2024