Retail Properties of America, Inc. Announces Strategic Transactions and Capital Markets Activity for

Retail Properties of America, Inc. Announces Strategic Transactions and Capital Markets Activity for the Fourth Quarter 2012

RPAI Reaches 2012 Disposition Goal Selling $492.2 million of Non-Core and Non-Strategic Properties

Raises $135 million in Inaugural Preferred Equity Offering


OAK BROOK, Ill.--(BUSINESS WIRE)-- Retail Properties of America, Inc. (NYS: RPAI) announced today the sale of $258.0 million of non-core and non-strategic assets during the fourth quarter 2012. For the full year 2012, the Company reached its stated asset disposition objective, disposing of $492.2 million of non-core and non-strategic properties, including the pro-rata share of joint venture properties. In addition, during the fourth quarter 2012, RPAI completed its inaugural preferred equity offering, with the sale of $135 million of 7% Series A Cumulative Redeemable Preferred Stock.

Fourth Quarter Disposition Activity

Asset dispositions during the fourth quarter 2012 included the sale of two non-core office assets for $153.5 million, eight single-tenant retail assets for $67.7 million, and two non-strategic retail assets for $36.8 million. Proceeds from the sales were used to repay mortgage debt and accrued interest of $117.7 million, resulting in net proceeds, before transaction expenses, of $140.3 million in the fourth quarter 2012.

"We are pleased to announce the successful execution of our stated 2012 strategic objective of $450 to $550 million of non-core and non-strategic asset dispositions," comments Shane Garrison, executive vice president, chief operating officer and chief investment officer. "Through these dispositions, we have further streamlined our high quality portfolio and continued to strengthen our balance sheet. We have now sold 18 of the 23 former Mervyns properties for $134.3 million and expect the remaining properties to close in the first half of 2013."

Fourth Quarter Capital Markets Transactions

On December 20, 2012, the Company closed on its first preferred equity offering, with the issuance of 5,400,000 shares of 7% Series A Cumulative Redeemable Preferred Stock at $25 per share, resulting in proceeds of $130.7 million, net of underwriters discount. The Company intends to use the net proceeds from the issuance to repay outstanding borrowings under two mezzanine loans, scheduled to mature on December 1, 2019, with outstanding principal balances as of December 31, 2012 of $85.0 million and $40.0 million and fixed interest rates of 12.24% and 14.00%, respectively. The mezzanine loans can be prepaid beginning February 1, 2013 for a prepayment fee of 5.00%.

"We made substantial progress repositioning RPAI's balance sheet during 2012 with a new unsecured credit facility in February, our listing and concurrent offering on the New York Stock Exchange in April, and most recently with our inaugural preferred equity offering in December," stated Angela Aman, executive vice president and chief financial officer. "We are now well-positioned for growth and we remain focused on our goal of becoming an investment grade borrower."

About RPAI

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.

Forward-Looking Statements

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," "will," "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, general volatility of the capital and credit markets, the uncertainties of real estate dispositions, 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.
Sarah Byrnes
Vice President - Investor Relations
(630) 634-4243
byrnes@rpai.com

KEYWORDS:   United States  North America  Illinois

INDUSTRY KEYWORDS:

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