RPAI chief says strong fourth quarter augurs a comeback in 2021

Steven Grimes said that the unprecedented challenges of 2020 tested every facet of center owner RPAI’s business during an earnings call today, but he was optimistic about the year ahead.

“The unemployment rate has declined, consumer confidence is well above the level it was in 2020, and the rollout of vaccines is progressing,” said the CEO of a company with more than 100 properties in the U.S. “We expect spring to provide a boost in sentiment and consumer activity.”

RPAI experienced a $13.6 million decrease in lease income in the fourth quarter of 2020, which it attributed primarily to the effects of COVID-19. Rents lost due to bankruptcies fell markedly in Q4, however, accounting for just 1.3% of new vacancies versus 2.6% in Q3.

RPAI collected more than 94% of its Q4 rents as of February 8, compared to tallies of 84% and 78% in the previous two quarters. Lease income collected by the company was off $51.6 million from 2019.

RPAI president and COO Shane Garrison said that deal activity began returning to pre-pandemic levels in Q4 with lease signings up by 12%. The company signed deals for 748,000 sq. ft. of retail space with 118 new and renewed tenants.

“Retailers unleashed large amounts of capital to secure business and pay owed rents, and our portfolio in first-string suburbs exploited the population shifts,” Grimes said.