GlobeNewswire Inc | Feb 17, 2021 04:15PM EST

February 17, 2021

-- Net (loss) income attributable to common shareholders for the fourth quarter 2020 of $(7.4) million, or $(0.09) per diluted share, compared to $71.1 million, or $0.83 per diluted share for the same period in 2019. Net (loss) income available to common shareholders for the full year 2020 of $(16.9) million, or $(0.21) per diluted share, compared to $84.8 million, or $1.04 per diluted share for the full year 2019. -- The Company initiated 2021 operating funds from operations ("FFO") per share guidance. -- The Company's Board of Trustees declared a first quarter 2021 regular cash dividend of $0.075 per common share. -- Assigned a first time investment grade credit rating of BBB- by Fitch Ratings, Inc. -- 94% of total tenants were open and operating, as of February 10, 2021, based on annualized base rent ("ABR"). -- 91% of fourth quarter 2020 rent and recovery income has been paid as of February 10, 2021.

NEW YORK, Feb. 17, 2021 (GLOBE NEWSWIRE) -- RPT Realty (NYSE:RPT) (the "Company") today announced its financial and operating results for the quarter and year ended December31, 2020.

"As we close the chapter on a turbulent year, I am proud of how our organization responded during such unprecedented times," said Brian Harper, President and CEO. "We were able to navigate the health crisis as well as social, economic and political unrest by focusing on three thingshumanity, liquidity and innovation. Humanity in ensuring that the health and well-being of our employees, tenants and shoppers was priority one. Liquidity in our focus on the balance sheet and our cash flows in the wake of the pandemic. And finally, innovation. From the time the new management team started, it was our goal to be a differentiator within a crowded field of shopping center REITs. We believe our joint venture with GIC is reflective of this goal and in 2021, we remain laser-focused on identifying innovative value-creation opportunities in an ever-evolving retail ecosystem."

FINANCIAL RESULTS

Net (loss) income attributable to common shareholders for the fourth quarter 2020 of $(7.4) million, or $(0.09) per diluted share, compared to $71.1 million, or $0.83 per diluted share for the same period in 2019. Net (loss) income available to common shareholders for the full year 2020 of $(16.9) million, or $(0.21) per diluted share, compared to $84.8 million, or $1.04 per diluted share for the full year 2019.

FFO for the fourth quarter 2020 of $14.7 million, or $0.18 per diluted share, compared to $14.4 million, or $0.18 per diluted share for the same period in 2019. FFO for the full year 2020 of $66.5 million, or $0.81 per diluted share, compared to $88.0 million, or $1.00 per diluted share for the full year 2019.

Operating FFO for the fourth quarter 2020 of $15.1 million, or $0.18 per diluted share, compared to $19.2 million or $0.24 per diluted share for the same period in 2019. Operating FFO for the fourth quarter 2020 excludes certain net losses that totaled $0.5 million, primarily attributable to an impairment on land available for development and severance expense, partially offset by a land sale gain and below market lease intangible write-offs in our joint venture. The change in Operating FFO was primarily driven by higher rental income not probable of collection, rent abatements and lower net operating income ("NOI") resulting from the contribution of a 48.5% interest in five assets into a joint venture formed in fourth quarter 2019. Fourth quarter 2020 rental income notprobable of collection and rent abatements were $4.4 million or $0.05 per diluted share, including the Company's share of unconsolidated joint ventures.

Operating FFO for the full year 2020 of $64.2 million, or $0.78 per diluted share, compared to $90.9 million, or $1.04 per diluted share in the full year 2019. Operating FFO for the full year 2020 excludes certain net income that totaled $2.3 million, primarily attributable to insurance proceeds related to storm damage at Front Range Village in Fort Collins, CO. The change in Operating FFO was primarily driven by higher rental income not probable of collection, rent abatements, higher straight-line rent reserves and lower NOI resulting from the contribution of a 48.5% interest in five assets into a joint venture formed in fourth quarter 2019. Full year 2020 rental income not probable of collection, rent abatements and straight-line rent reserves, were $18.0 million or $0.22 per diluted share, including the Company's share of unconsolidated joint ventures.

OPERATING RESULTS

The Company's operating results include its consolidated properties and its pro-rata share of unconsolidated joint ventures.

Same property NOI during the fourth quarter 2020 decreased 10.4% compared to the same period in 2019. The decrease was driven by the impact of the COVID-19 pandemic, resulting in higher income not probable of collection and rent abatements, which detracted 9.6% from same property NOI growth.

During the fourth quarter 2020, the Company signed 36 leases totaling 120,295 square feet. Blended re-leasing spreads on comparable leases were 3.4% with ABR of $25.26 per square foot. Re-leasing spreads on seven comparable new and 20 renewal leases were 6.8% and 2.8%, respectively.

As of December31, 2020, the Company had $3.2 million of signed not commenced ABR that is scheduled to commence over the next 15 months.

The table below summarizes the Company's leased rate and occupancy results at December31, 2020, September 30, 2020 and December31, 2019.

December 31, September 30, December 31, 2020 2020 2019Consolidated & Joint Venture PortfolioLeased rate 92.8% 93.3% 94.7%Occupancy 91.5% 92.1% 94.3%Anchor (GLA of 10,000 square feet or more)Leased rate 96.1% 96.8% 97.4%Occupancy 95.1% 95.6% 97.2%Small Shop (GLA of less than 10,000 square feet)Leased rate 84.9% 84.9% 88.2%Occupancy 82.9% 83.6% 87.4%

BALANCE SHEET

The Company ended the fourth quarter 2020 with $211.5 million in cash, cash equivalents and restricted cash. At December31, 2020, the Company had approximately $1,031.1 million of consolidated debt and finance lease obligations, which resulted in a trailing twelve month net debt to proforma adjusted EBITDA ratio of 7.4x. Consolidated debt had a weighted average interest rate of 3.58% and a weighted average maturity, excluding scheduled amortization, of 4.6 years.

On November 19, 2020, Fitch Ratings, Inc. assigned a first time rating to the Company, including a Long-Term Issuer Default Rating of BBB- with a stable outlook. See the Company's press release dated November 19, 2020 for additional details.

During fourth quarter 2020, the Company repaid $25.0 million on its unsecured revolving line of credit. At December31, 2020, the Company had $100.0 million drawn on its $350.0 million unsecured revolving line of credit. Subsequent to the quarter ended December 31, 2020, the Company repaid the remaining $100 million on its unsecured revolving line of credit, resulting in a fully undrawn $350 million revolver.

DISPOSITIONS

During fourth quarter 2020, the Company sold two non-core land parcels for a gross sales price of $1.4 million.

DIVIDEND

On February 11, 2021, the Board of Trustees declared a first quarter 2021 regular cash dividend of $0.075 per common share. The Board of Trustees also approved a first quarter 2021 Series D convertible preferred share dividend of $0.90625 per share. The current conversion ratio of the Series D convertible preferred shares can be found on the Company's website at investors.rptrealty.com/shareholder-information/dividends. The dividends, for the period January 1, 2021 through March 31, 2021 are payable on April 1, 2021 for shareholders of record on March 19, 2021.

COVID-19 UPDATE

The Company is closely monitoring the COVID-19 pandemic, including the impact on our business, employees, tenants, shopping centers and communities. The following summary is intended to provide information pertaining to the impacts of the COVID-19 pandemic on the Companys business. Unless otherwise specified, the statistical and other information regarding the Companys portfolio are as of February 10, 2021. These estimates are based on information available to the Company and includes its consolidated properties and its pro-rata share of unconsolidated joint ventures.

-- 100% of the Company's 49 shopping centers remain open and operating. -- 94% of total tenants by ABR were open and operating, up from the low of 41% on April 22, 2020. -- 67% of the Companys properties by ABR had a grocery or grocer component and 87% of ABR stemmed from national or regional tenants, as of December 31, 2020. -- 91% of fourth quarter 2020 rent and recovery income has been paid. -- 6% of fourth quarter 2020 rent and recovery income are subject to signed or approved deferral agreements.

The table below summarizes the Company's rent and recovery income collection results at various points in time and for the selected reporting periods.

As of 2Q20 3Q20 4Q20July 31, 2020 65% N/A N/AOctober 30, 2020 76% 87% N/AFebruary 10, 2021 81% 89% 91%

2021 Guidance

The Company initiated 2021 operating FFO per diluted share guidance of $0.77 to $0.87. Selected expectations are outlined below.

-- Does not include the net impact of changes to 2020 estimates for rent not probable of collection and straight line rent reserves. -- Does not include potential acquisition activity. -- The guidance range is primarily driven by a range of outcomes for current year rent not probable of collection. -- The mid-point of the guidance range assumes an improvement in the economy in the second half of the year as vaccinations become more widely available over the course of 2021.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, including the information under "2021 Guidance" above, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, acquisition costs and other non-core items that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

The Companys 2021 guidance reflects managements view of current and future market conditions, including current expectations with respect to rental rates, occupancy levels, acquisitions and dispositions and debt and equity financing activities. To the extent actual results differ from our current expectations, the Companys results may differ materially from the guidance set forth above. Other factors, as referenced elsewhere in this press release, may also cause the Companys results to differ materially from the guidance set forth above.

CONFERENCE CALL/WEBCAST:

The Company will host a live broadcast of its fourth quarter 2020 conference call to discuss its financial and operating results.

Date: Thursday, February 18, 2021Time: 9:00 a.m. ETDial in #: (877) 705-6003International Dial in # (201) 493-6725Webcast: investors.rptrealty.com

A telephonic replay of the call will be available through Thursday, February 25, 2021. The replay can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers and entering passcode 13713758. A webcast replay will also be archived on the Companys website for twelve months.

SUPPLEMENTAL MATERIALS

The Companys quarterly financial and operating supplement is available on its corporate web site at rptrealty.com. If you wish to receive a copy via email, please send requests to invest@rptrealty.com.

RPT Realty owns and operates a national portfolio of open-air shopping destinations principally located in top U.S. markets. The Company's shopping centers offer diverse, locally-curated consumer experiences that reflect the lifestyles of their surrounding communities and meet the modern expectations of the Company's retail partners. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange (the NYSE). The common shares of the Company, par value $0.01 per share (the common shares) are listed and traded on the NYSE under the ticker symbol RPT. As of December31, 2020, our property portfolio consisted of 49 shopping centers (including five shopping centers owned through a joint venture) representing 11.9 million square feet of gross leasable area.As of December31, 2020, the Companys pro-rata share of the aggregate portfolio was 92.8% leased. For additional information about the Company please visit rptrealty.com.

Company Contact:

Vin Chao, Senior Vice President - Finance19 W 44th St. 10th Floor, Ste 1002New York, New York 10036vchao@rptrealty.com(212) 221-1752

FORWARD-LOOKING STATEMENTS

This press release contains 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. These forward-looking statements represent our expectations, plans or beliefs concerning future events and may be identified by terminology such as may, will, should, believe, expect, estimate, anticipate, continue, predict or similar terms. Although the forward-looking statements made in this document are based on our good faith beliefs, reasonable assumptions and our best judgment based upon current information, certain factors could cause actual results to differ materially from those in the forward-looking statements. Many of the factors that will determine the outcome of forward-looking statements are beyond our ability to predict or control. Currently, one of the most significant factors is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company and our tenants (including their ability to timely make rent payments), the real estate market (including the local markets where our properties are located), the financial markets and general global economy as well as the potential adverse impact on our ability to enter into new leases or renew leases with existing tenants on favorable terms or at all. The impact COVID-19 has, and will continue to have, on the Company and its tenants is highly uncertain, cannot be predicted and will vary based upon the duration, magnitude and scope of the COVID-19 pandemic as well as the actions taken by federal, state and local governments to mitigate the impact of COVID-19, including social distancing protocols, restrictions on business activities and shelter-in- place and stay at home mandates. Additional factors which may cause actual results to differ materially from current expectations include, but are not limited to: our success or failure in implementing our business strategy; economic conditions generally and in the commercial real estate and finance markets specifically; the cost and availability of capital, which depends in part on our asset quality and our relationships with lenders and other capital providers; risks associated with bankruptcies or insolvencies or general downturn in the businesses of tenants; the potential adverse impact from tenant defaults generally or from the unpredictability of the business plans and financial condition of the Company's tenants, which are heightened as a result of the COVID-19 pandemic; the execution of rent deferral or concession agreements on the agreed-upon terms; our business prospects and outlook; changes in governmental regulations, tax rates and similar matters; our continuing to qualify as a REIT; and other factors detailed from time to time in our filings with the Securities and Exchange Commission ("SEC"), including in particular those set forth under Risk Factors in our latest annual report on Form 10-K and our latest quarterly report on Form 10-Q, which you should interpret as being heightened as a result of the numerous and ongoing adverse impacts of COVID-19. Given these uncertainties, you should not place undue reliance on any forward-looking statements. Except as required by law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future.

RPT REALTYCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except per share amounts)(unaudited) December 31, December 31, 2020 2019ASSETS Income producing properties, at cost: Land $ 330,763 $ 331,265 Buildings and improvements 1,489,997 1,486,838 Less accumulated depreciation and (392,301 ) (352,006 ) amortizationIncome producing properties, net 1,428,459 1,466,097 Construction in progress and land 34,789 42,279 available for developmentNet real estate 1,463,248 1,508,376 Equity investments in unconsolidated 126,333 130,321 joint venturesCash and cash equivalents 208,887 110,259 Restricted cash and escrows 2,597 4,293 Accounts receivable, net 26,571 24,974 Acquired lease intangibles, net 26,354 34,278 Operating lease right-of-use assets 18,585 19,222 Other assets, net 77,465 86,836 TOTAL ASSETS $ 1,950,040 $ 1,918,559 LIABILITIES AND SHAREHOLDERS' EQUITY Notes payable, net $ 1,027,751 $ 930,808 Finance lease obligation 875 926 Accounts payable and accrued expenses 45,292 55,360 Distributions payable 1,723 19,792 Acquired lease intangibles, net 35,283 38,898 Operating lease liabilities 17,819 18,181 Other liabilities 19,928 6,339 TOTAL LIABILITIES 1,148,671 1,070,304 Commitments and Contingencies RPT Realty ("RPT") Shareholders' Equity: Preferred shares of beneficial interest,$0.01 par, 2,000 shares authorized:7.25% Series D Cumulative ConvertiblePerpetual Preferred Shares, (stated at 92,427 92,427 liquidation preference $50 per share),1,849 shares issued and outstanding asof December31, 2020 and December31,2019, respectivelyCommon shares of beneficial interest,$0.01 par, 240,000 and 120,000 sharesauthorized as of December31, 2020 andDecember31, 2019, respectively, and 801 798 80,055 and 79,850 shares issued andoutstanding as of December31, 2020 andDecember31, 2019, respectivelyAdditional paid-in capital 1,174,315 1,169,557 Accumulated distributions in excess of (471,017 ) (436,361 ) net incomeAccumulated other comprehensive (loss) (14,132 ) 1,819 incomeTOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE 782,394 828,240 TO RPTNoncontrolling interest 18,975 20,015 TOTAL SHAREHOLDERS' EQUITY 801,369 848,255 TOTAL LIABILITIES AND SHAREHOLDERS' $ 1,950,040 $ 1,918,559 EQUITY

RPT REALTYCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share amounts)(unaudited)

Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019REVENUE Rental income $ 46,368 $ 56,780 $ 187,151 $ 229,588 Other property 876 1,266 3,166 4,270 incomeManagement and 478 52 1,395 230 other fee incomeTOTAL REVENUE 47,722 58,098 191,712 234,088 EXPENSES Real estate tax 7,973 8,294 33,086 35,961 expenseRecoverable 6,021 7,052 21,915 25,256 operating expenseNon-recoverable 2,413 2,630 8,962 10,292 operating expenseDepreciation and 20,210 18,782 77,213 78,647 amortizationTransaction costs ? ? 186 ? General andadministrative 6,822 8,789 25,801 27,634 expenseProvision for 598 ? 598 ? impairmentInsured expenses, ? 2,276 (2,745 ) 2,276 netTOTAL EXPENSES 44,037 47,823 165,016 180,066 OPERATING INCOME 3,685 10,275 26,696 54,022 OTHER INCOME AND EXPENSESOther (expense) (108 ) 24 214 (203 ) income, netGain on sale of 318 75,783 318 81,856 real estateEarnings fromunconsolidated 76 128 1,590 581 joint venturesInterest expense (9,826 ) (9,707 ) (39,317 ) (40,057 ) Other gain onunconsolidated ? ? ? 237 joint venturesLoss onextinguishment of ? (1,949 ) ? (2,571 ) debt(LOSS) INCOME (5,855 ) 74,554 (10,499 ) 93,865 BEFORE TAXIncome tax (12 ) (97 ) 25 (179 ) (provision) benefitNET (LOSS) INCOME (5,867 ) 74,457 (10,474 ) 93,686 Net loss (income)attributable to 135 (1,727 ) 241 (2,175 ) noncontrollingpartner interestNET (LOSS) INCOME (5,732 ) 72,730 (10,233 ) 91,511 ATTRIBUTABLE TO RPTPreferred share (1,675 ) (1,675 ) (6,701 ) (6,701 ) dividendsNET (LOSS) INCOMEAVAILABLE TO COMMON $ (7,407 ) $ 71,055 $ (16,934 ) $ 84,810 SHAREHOLDERS (LOSS) EARNINGSPER COMMON SHAREBasic $ (0.09 ) $ 0.89 $ (0.21 ) $ 1.06 Diluted $ (0.09 ) $ 0.83 $ (0.21 ) $ 1.04 WEIGHTED AVERAGECOMMON SHARES OUTSTANDINGBasic 80,055 79,850 79,998 79,802 Diluted 80,055 87,825 79,998 87,722



RPT REALTYRECONCILIATION OF NON-GAAP FINANCIAL MEASURESFUNDS FROM OPERATIONS(In thousands, except per share data)(unaudited)

Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 Net (loss) income $ (5,867 ) $ 74,457 $ (10,474 ) $ 93,686 Net loss (income)attributable to 135 (1,727 ) 241 (2,175 )noncontrolling partnerinterestPreferred share dividends (1,675 ) (1,675 ) (6,701 ) (6,701 )Net (loss) incomeavailable to common (7,407 ) 71,055 (16,934 ) 84,810 shareholdersAdjustments: Rental propertydepreciation and 20,061 18,659 76,649 78,095 amortization expensePro-rata share of realestate depreciation from 2,146 424 7,044 459 unconsolidated jointventures (1)Gain on sale of ? (75,783 ) ? (81,485 )depreciable real estateGain on sale of jointventure depreciable real ? ? ? (385 )estateOther gain onunconsolidated joint ? ? ? (237 )venturesFFO available to common 14,800 14,355 66,759 81,257 shareholdersNoncontrolling interest in (135 ) ? (241 ) ? Operating Partnership (2)Preferred share dividends ? ? ? 6,701 (assuming conversion) (3)FFO available to commonshareholders and dilutive $ 14,665 $ 14,355 $ 66,518 $ 87,958 securitiesGain on sale of land (318 ) ? (318 ) (371 )Provision for impairmenton land available for 598 ? 598 ? developmentTransaction costs (4) ? ? 186 ? Insured expenses, net ? 2,276 (2,745 ) 2,276 Severance expense (5) 290 ? 506 130 Executive management ? 627 ? 1,402 reorganization, net (5)(6)R2G Venture LLC related ? 499 ? 499 costs (5)(7)Above and below marketlease intangible ? (470 ) (256 ) (3,525 )write-offsPro-rata share ofacquisition costs from ? ? 407 ? unconsolidated jointventures (1)Pro-rata share of aboveand below market leaseintangible write-offs from (120 ) ? (626 ) ? unconsolidated jointventures (1)Loss on extinguishment of ? 1,949 ? 2,571 debtPayment of loan amendment ? ? 184 ? fees (5)Bond interest proceeds (8) ? ? (213 ) ? Operating FFO available tocommon shareholders and $ 15,115 $ 19,236 $ 64,241 $ 90,940 dilutive securities Weighted average common 80,055 79,850 79,998 79,802 sharesShares issuable uponconversion of Operating 1,909 ? 1,909 ? Partnership Units (?OPUnits?) (2)Dilutive effect of 410 995 496 939 restricted stockShares issuable uponconversion of preferred ? ? ? 6,981 shares (3)Weighted averageequivalent shares 82,374 80,845 82,403 87,722 outstanding, diluted FFO available to commonshareholders and dilutive $ 0.18 $ 0.18 $ 0.81 $ 1.00 securities per share,diluted Operating FFO available tocommon shareholders and $ 0.18 $ 0.24 $ 0.78 $ 1.04 dilutive securities pershare, diluted Dividend per common share $ ? $ 0.22 $ 0.22 $ 0.88 Payout ratio - Operating ? % 91.7 % 28.2 % 84.6 %FFO

^(1) Amounts noted are included in Earnings from unconsolidated joint ventures.

The total noncontrolling interest reflects OP units convertible on a one-of-one basis into common shares. The Company's net income for the three and twelve months ended December 31, 2019 (largely driven by gain on sale^ of real estate), resulted in an income allocation to OP Units which drove(2) an OP Unit ratio of $0.90 and $1.14 (based on 1,909 weighted average OP Units outstanding). In instances when the OP Unit ratio exceeds basic FFO, the OP Units are considered anti-dilutive, and as a result are not included in the calculation of fully diluted FFO and Operating FFO for the three and twelve months ended December 31, 2019. 7.25% Series D Cumulative Convertible Perpetual Preferred Shares of Beneficial Interest, $0.01 par (?Series D Preferred Shares?) are paid annual dividends of $6.7 million and are currently convertible into^ approximately 7.0 million shares of common stock. They are dilutive only(3) when earnings or FFO exceed approximately $0.24 per diluted share per quarter and $0.96 per diluted share per year. The conversion ratio is subject to adjustment based upon a number of factors, and such adjustment could affect the dilutive impact of the Series D convertible preferred shares on FFO and earning per share in future periods.^ Costs associated with a terminated acquisition and a terminated(4) disposition.

^(5) Amounts noted are included in General and administrative expense.

^ For 2019, largely comprised of severance to a former executive officer and(6) performance award expense related to the former Chief Executive Officer.

^ For 2019, comprised of special incentive expense related to the execution(7) of the R2G Venture LLC joint venture agreement.

^(8) Amounts noted are included in Other (expense) income, net.

RPT REALTYRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(amounts in thousands)(unaudited)

Reconciliation of net (loss) income available to common shareholders to SameProperty Net Operating Income (NOI) at Pro-Rata Three Months Ended December Twelve Months Ended December 31, 31, 2020 2019 2020 2019Net (loss) incomeavailable to common $ (7,407 ) $ 71,055 $ (16,934 ) $ 84,810 shareholdersPreferred share 1,675 1,675 6,701 6,701 dividendsNet (loss) incomeattributable to (135 ) 1,727 (241 ) 2,175 noncontrollingpartner interestIncome tax 12 97 (25 ) 179 (benefit) provisionInterest expense 9,826 9,707 39,317 40,057 Loss onextinguishment of ? 1,949 ? 2,571 debtEarnings fromunconsolidated (76 ) (128 ) (1,590 ) (581 ) joint venturesGain on sale of (318 ) (75,783 ) (318 ) (81,856 ) real estateOther gain onunconsolidated ? ? ? (237 ) joint venturesInsured expenses, ? 2,276 (2,745 ) 2,276 netOther expense 108 (24 ) (214 ) 203 (income), netManagement and (478 ) (52 ) (1,395 ) (230 ) other fee incomeDepreciation and 20,210 18,782 77,213 78,647 amortizationTransaction costs ? ? 186 ? General andadministrative 6,822 8,789 25,801 27,634 expensesProvision for 598 ? 598 ? impairmentPro-rata share ofNOI from 1,999 521 8,155 521 unconsolidatedjoint venture ^(1)Lease termination (183 ) (409 ) (368 ) (743 ) feesAmortization of 212 160 766 519 lease inducementsAmortization ofacquired above and (655 ) (1,218 ) (2,903 ) (6,762 ) below market leaseintangibles, netStraight-line 76 76 306 306 ground rent expenseStraight-line 8 (459 ) 2,026 (2,408 ) rental incomeNOI at Pro-Rata ^ 32,294 38,741 134,336 153,782 (2)NOI from Other 1,479 (1,049 ) 3,082 (5,284 ) InvestmentsSame Property NOI $ 33,773 $ 37,692 $ 137,418 $ 148,498 at Pro-Rata ^(3)

^ Represents 51.5% of the NOI from the five properties contributed to R2G(1) Venture LLC after December 9, 2019.^ Includes 100.0% of the NOI from the five properties contributed to R2G(2) Venture LLC prior to December 10, 2019 and 51.5% of the NOI from the same five properties after December 9, 2019.^ Includes 51.5% of the NOI from the five properties contributed to R2G(3) Venture LLC for all periods presented.

RPT REALTYRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(amounts in thousands)(unaudited) Twelve Months Ended December 31, 2020Reconciliation of net income to proforma adjusted EBITDA Net loss $ (10,474 ) Interest expense 39,317 Income tax benefit (25 ) Depreciation and amortization 77,213 Pro-rata adjustments from unconsolidated entities 7,044 EBITDAre $ 113,075 Gain on sale of land (318 ) Provision for impairment on land available for development 598 Severance expense 506 Above and below market lease intangible write-offs (256 ) Transaction costs 186 Pro-rata share of above and below market lease intangible (626 ) write-offs from unconsolidated entitiesPro-rata share of acquisition costs from unconsolidated 407 entitiesInsured expenses, net (2,745 ) Payment of loan amendment fees 184 Bond interest proceeds (213 ) Adjusted EBITDA 110,798 Proforma adjustments ? Proforma adjusted EBITDA $ 110,798 Reconciliation of Notes Payable, net to Net Debt Notes payable, net $ 1,027,751 Unamortized premium (1,103 ) Deferred financing costs, net 3,606 Consolidated notional debt 1,030,254 Finance lease obligation 875 Cash, cash equivalents and restricted cash (211,484 ) Pro-rata share of unconsolidated entities cash, cash (1,914 ) equivalents and restricted cashNet debt $ 817,731 Reconciliation of interest expense to total fixed charges Interest expense $ 39,317 Preferred share dividends 6,701 Scheduled mortgage principal payments 2,326 Total fixed charges $ 48,344 Net debt to proforma adjusted EBITDA 7.4 xInterest coverage ratio (proforma adjusted EBITDA / interest 2.8 xexpense)Fixed charge coverage ratio (proforma adjusted EBITDA / fixed 2.3 xcharges)

RPT REALTYRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(amounts in thousands)(unaudited) Three Months Ended December 31, 2020 2019Reconciliation of net income to annualized proforma adjusted EBITDANet (loss) income $ (5,867 ) $ 74,457 Interest expense 9,826 9,707 Income tax provision 12 97 Depreciation and amortization 20,210 18,782 Gain on sale of depreciable real estate ? (75,783 ) Pro-rata adjustments from unconsolidated 2,146 424 entitiesEBITDAre 26,327 27,684 Severance expense 290 ? Executive management reorganization, net ? 627 Above and below market lease intangible ? (470 ) write-offsGain on sale of land (318 ) ? Provision for impairment on land available for 598 ? developmentR2G Venture LLC related costs ? 499 Pro-rata share of above and below market leaseintangible write-offs from unconsolidated (120 ) ? entitiesInsured expenses, net ? 2,276 Loss on extinguishment of debt ? 1,949 Adjusted EBITDA 26,777 32,565 Proforma adjustments ^(1) ? (51 ) Proforma adjusted EBITDA $ 26,777 $ 32,514 Annualized proforma adjusted EBITDA $ 107,108 $ 130,056 Reconciliation of Notes Payable, net to Net DebtNotes payable, net $ 1,027,751 $ 930,808 Unamortized premium (1,103 ) (1,995 ) Deferred financing costs, net 3,606 3,768 Consolidated notional debt 1,030,254 932,581 Finance lease obligation 875 926 Cash, cash equivalents and restricted cash (211,484 ) (114,552 ) Pro-rata share of unconsolidated entities cash, (1,914 ) (1,120 ) cash equivalents and restricted cashNet debt $ 817,731 $ 817,835 Reconciliation of interest expense to total fixed chargesInterest expense $ 9,826 $ 9,707 Preferred share dividends 1,675 1,675 Scheduled mortgage principal payments 608 671 Total fixed charges $ 12,109 $ 12,053 Net debt to annualized proforma adjusted EBITDA 7.6 x 6.3 xInterest coverage ratio (proforma adjusted 2.7 x 3.3 xEBITDA / interest expense)Fixed charge coverage ratio (proforma adjusted 2.2 x 2.7 xEBITDA / fixed charges)

4Q19 excludes $1.5 million representing the 48.5% of the five properties contributed to R2G Venture LLC, partially offset by the exclusion of $1.1(1) million from an annual expense that was fully recognized during the quarter and the inclusion of $0.3 million from the acquisition of Lakehills. The proforma adjustments treat the activity as if they occurred at the start of each quarter.

RPT RealtyNon-GAAP Financial Definitions

Certain of our key performance indicators are considered non-GAAP financial measures. Management uses these measures along with our GAAP financial statements in order to evaluate our operations results. We believe these measures provide additional and useful means to assess our performance. These measures do not represent alternatives to GAAP measures as indicators of performance and a comparison of the Company's presentations to similarly titled measures of other REITs may not necessarily be meaningful due to possible differences in definition and application by such REITs.

Funds From Operations (FFO)As defined by the National Association of Real Estate Investment Trusts (NAREIT), Funds From Operations (FFO) represents net income computed in accordance with generally accepted accounting principles, excluding gains (or losses) from sales of depreciable property and impairment provisions on depreciable real estate or on investments in non-consolidated investees that are driven by measurable decreases in the fair value of depreciable real estate held by the investee, plus depreciation and amortization of depreciable real estate, (excluding amortization of financing costs). Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis. We have adopted the NAREIT definition in our computation of FFO.

Operating FFOIn addition to FFO, we include Operating FFO as an additional measure of our financial and operating performance. Operating FFO excludes transactions costs and periodic items such as gains (or losses) from sales of land and impairment provisions on land, bargain purchase gains, severance expense, executive management reorganization costs, net, accelerated amortization of debt premiums, gains or losses on extinguishment of debt, insured expenses, net, accelerated write-offs of above and below market lease intangibles, accelerated write-offs of lease incentives and R2G Venture LLC related costs that are not adjusted under the current NAREIT definition of FFO. We provide a reconciliation of FFO to Operating FFO. In future periods, Operating FFO may also include other adjustments, which will be detailed in the reconciliation for such measure, that we believe will enhance comparability of Operating FFO from period to period. FFO and Operating FFO should not be considered alternatives to GAAP net income available to common shareholders or as alternatives to cash flow as measures of liquidity.

While we consider FFO available to common shareholders and Operating FFO available to common shareholders useful measures for reviewing our comparative operating and financial performance between periods or to compare our performance to different REITs, our computations of FFO and Operating FFO may differ from the computations utilized by other real estate companies, and therefore, may not be comparable. We recognize the limitations of FFO and Operating FFO when compared to GAAP net income available to common shareholders. FFO and Operating FFO available to common shareholders do not represent amounts available for needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. In addition, FFO and Operating FFO do not represent cash generated from operating activities in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs, including the payment of dividends.

Net Operating Income (NOI) / Same Property NOI / NOI from Other InvestmentsNOI consists of (i) rental income and other property income, before straight-line rental income, amortization of lease inducements, amortization of acquired above and below market lease intangibles and lease termination fees less (ii) real estate taxes and all recoverable and non-recoverable operating expenses other than straight-line ground rent expense, in each case, including our share of these items from our R2G Venture LLC unconsolidated joint venture.

NOI, Same Property NOI and NOI from Other Investments are supplemental non-GAAP financial measures of real estate companies' operating performance. Same Property NOI is considered by management to be a relevant performance measure of our operations because it includes only the NOI of comparable operating properties for the reporting period. Same Property NOI for the three and twelve months ended December31, 2020 and 2019 represents NOI from the Company's same property portfolio consisting of 41 consolidated operating properties acquired or placed in service and stabilized prior to January 1, 2019 and five previously consolidated properties contributed to the newly formed joint venture, R2G Venture LLC, in December 2019. Same property NOI from these five properties includes 51.5% of their NOI as a consolidated property for the period January 1, 2019 through December 9, 2019 and 51.5% of their NOI as an unconsolidated property accounted for under the equity method for the period December 10, 2019 through December31, 2020. Same Property NOI excludes properties under redevelopment or where activities have started in preparation for redevelopment. A property is designated as a redevelopment when planned improvements significantly impact the property. NOI from Other Investments for the three and twelve months ended December31, 2020 and 2019 represents NOI primarily from (i) properties disposed of and acquired during 2019, (ii) 48.5% of the NOI prior to December 10, 2019 from the five previously consolidated properties contributed to the R2G Venture LLC unconsolidated joint venture, (iii) Webster Place and Rivertowne Square where the Company has begun activities in anticipation of future redevelopment, (iv) certain property related employee compensation, benefits, and travel expense and (v) noncomparable operating income and expense adjustments.

NOI, Same Property NOI and NOI from Other Investments should not be considered as alternatives to net income in accordance with GAAP or as measures of liquidity. Our method of calculating these measures may differ from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

Net DebtNet Debt represents (i) our total debt principal, which excludes unamortized premium and deferred financing costs, net, plus (ii) our finance lease obligation, less (iii) our cash, cash equivalents and restricted cash, less (iv) our pro-rata share of cash, cash equivalents and restricted cash of each of our unconsolidated entities. We present net debt to show the ratio of our net debt to our proforma Adjusted EBITDA.

EBITDAre/Adjusted EBITDA/Proforma Adjusted EBITDANAREIT defines EBITDAre as net income computed in accordance with GAAP, plus interest expense, income tax expense (benefit), depreciation and amortization and impairment of depreciable real estate and in substance real estate equity investments; plus or minus gains or losses from sales of operating real estate assets and interests in real estate equity investments; and adjustments to reflect our share of unconsolidated real estate joint ventures and partnerships for these items. The Company calculates EBITDAre in a manner consistent with the NAREIT definition. The Company also presents Adjusted EBITDA which is EBITDAre net of other items that we believe enhance comparability of Adjusted EBITDA across periods and are listed as adjustments in the applicable reconciliation. EBITDAre and Adjusted EBITDA should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP.

Pro-RataWe present certain financial information on a pro-rata basis or including pro-rata adjustments. Unless otherwise specified, pro-rata financial information includes our proportionate economic ownership of each of our unconsolidated joint ventures derived on an entity-by-entity basis by applying the ownership percentage interest used to arrive at our share of the net operations for the period consistent with the application of the equity method of accounting to each of our unconsolidated joint ventures. See page 35 of our quarterly financial and operating supplement for a discussion of important considerations and limitations that you should be aware of when review financial information that we present on a pro-rata basis or including pro-rata adjustment.

OccupancyOccupancy is defined, for a property or group of properties, as the ratio, expressed as a percentage, of (a) the number of square feet of such property economically occupied by tenants under leases with an initial term of greater than one year, to (b) the aggregate number of square feet for such property.

Leased RateLease Rate is defined, for a property or group of properties, as the ratio, expressed as a percentage, of (a) the number of square feet of such property under leases with an initial term of greater than one year, including signed leases not yet commenced, to (b) the aggregate number of square feet for such property.

Metropolitan Statistical Area (MSA)Metropolitan Statistical Area (MSA) information is sourced from the United States Census Bureau and rank is determined based on the most recently available population estimates.