RPT Realty Reports Q3 2023 Earnings: Net Loss of $7.9 Million, Operating FFO per Share at $0.24
RPT Realty (NYSE:RPT) reports a net loss of $7.9 million for Q3 2023, compared to a net income of $11.3 million in Q3 2022.
Operating Funds from Operations (FFO) per diluted share stands at $0.24 for Q3 2023.
Same Property Net Operating Income (NOI) increased by 2.6% YoY, exceeding internal quarterly expectations.
Leasing volume exceeded 500,000 square feet for the fifth consecutive quarter, with 747,672 square feet signed in Q3 2023.
On November 2, 2023, RPT Realty (NYSE:RPT) released its financial and operating results for the third quarter ended September 30, 2023. The company reported a net loss attributable to common shareholders of $7.9 million, or $(0.09) per diluted share, compared to a net income of $11.3 million, or $0.13 per diluted share for the same period in 2022.
Financial Highlights
The company's Operating Funds from Operations (FFO) per diluted share for Q3 2023 was $0.24. The same property net operating income (NOI) during the third quarter 2023 increased 2.6% compared to the same period in 2022, exceeding internal quarterly expectations.
Operational Highlights
RPT Realty signed 747,672 square feet in the third quarter 2023, marking the fifth consecutive quarter of leasing volume over 500,000 square feet. The company also grew the signed not commenced rent and recovery income balance to $13.1 million as of September 30, 2023, up from $9.3 million as of June 30, 2023. This represents an increase of over 8% above third quarter 2023 annualized NOI and increasing the total leased-to-occupied spread to 490 basis points.
Merger with Kimco Realty Corporation
During the quarter, the company entered into a definitive merger agreement under which RPT will be acquired by Kimco Realty Corporation ("Kimco") in an all-stock transaction valued at approximately $2 billion, including the assumption of debt and preferred stock. The transaction is expected to close in the beginning of 2024, subject to RPT shareholder approval and other customary closing conditions.
Balance Sheet and Dividend
The company ended the third quarter 2023 with $4.6 million in consolidated cash, cash equivalents and restricted cash and $472.0 million of unused capacity on its $500.0 million unsecured revolving credit facility. The Board of Trustees declared a regular cash dividend of $0.14 per common share, payable on December 21, 2023 for shareholders of record on December 7, 2023.
Looking Forward
In light of the Company's previously-announced proposed merger with Kimco Realty, the Company is not providing guidance and it is not affirming past guidance.
Explore the complete 8-K earnings release (here) from RPT Realty for further details.
This article first appeared on GuruFocus.
