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RPT Realty (NYSE:RPT)
Q2 2020 Earnings Call
Aug 5, 2020, 9:00 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the RPT Realty Second Quarter 2020 Earnings Conference Call. [Operator Instructions] [Operator Instructions]

It is now my pleasure to introduce your host, Mr. Vincent Chao. Thank you. Mr. Chao, you may begin.

Vin Chao -- Senior Vice President Finance

Good morning, and thank you for joining us for RPT's Second Quarter 2020 Earnings Conference Call. At this time, management would like me to inform you that certain statements made during this conference call, which are not historical, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Additionally, statements made during the call are made as of the date of this call. Listeners to any replay should understand that the passage of time by itself will diminish the quality of the statements made.

Although we believe that the expectations reflected in any forward-looking statements are based on reasonable assumptions, factors and risks could cause actual results to differ from expectations. Certain of these factors are described as risk factors in our annual report on Form 10-K and quarterly report on Form 10-Q for the first quarter of 2020 and on our earnings release for the second quarter of 2020.

Certain of these statements made on today's call also involve non-GAAP financial measures. Listeners are directed to our second quarter press release, which includes definitions of those non-GAAP measures and reconciliations to the nearest GAAP measures and which is available on our website in the Investors section.

I would now like to turn the call over to President and CEO, Brian Harper; and CFO, Mike Fitzmaurice, for their opening remarks, after which, we will open the call for questions.

Brian L. Harper -- President, Chief Executive Officer, and Trustee

Good morning, and thank you for joining our second quarter 2020 conference call. I hope you are all well and staying safe. I'd also like to thank everyone on the frontline of the pandemic for all of your extraordinary efforts to get us through this difficult time. The past quarter has been a challenging one. But as they say, challenging times don't build character, they reveal it. And I'm very proud of the character that RPT has demonstrated since the outbreak: integrity, toughness, flexibility and ownership. I'm also thankful to our Board of Trustees, who have been a rock of support. Their collective expertise that spans multiple business cycles in multiple industries and includes former executives at retailers and restaurants has helped immensely during this time.

Our people are our greatest asset. And it is our people that will get us through this situation and position us for success thereafter. Last quarter, I laid out four principles that will drive our performance during and after the pandemic: ample liquidity, excellence in operations, business continuity and maintaining a strategic outlook for the future. These principles continue to guide our decision-making process. First, on liquidity. Today, we sit in a comfortable position with almost $250 million of cash on the balance sheet, no debt maturing this year, only $37 million maturing next year and our July collections are already at a cash flow positive level.

That said, capital preservation remains a top priority as we continue to manage through the current environment. Accordingly, the Board recently made the decision to continue the suspension of the quarterly common dividend for the third quarter 2020. As discussed last quarter, future dividend decisions will be made based on liquidity needs and REIT taxable income distribution requirements in the near term. As business visibility continues to improve, management and the Board remain committed to reinstating the common dividend to a sustainable level that we can grow over time. Turning to operational excellence.

This is a quarter like no other, and the dedication that our organization demonstrated was impressive to say the least. As noted in our press release, all properties are open and 92% of our tenants are operating again. As of July 31, we collected 65% of second quarter rent. And combined with signed or approved deferral agreements, we have addressed 89% of our second quarter rent. Rent collections for July have risen to 75%. And including signed or approved deferral agreements, we have addressed 93% of our July rents. The improvement in collections reflects retailer reopenings, our persistent collection efforts and the roll-off of some deferral periods that are converting to cash collections.

We expect collection levels to continue to rise as deferral periods roll off in the coming months. It's important to keep in mind that we have used rent negotiations to improve lease structures that otherwise would have taken years to address. We've also been able to unlock value by recapturing use rights at certain of our centers that will significantly strengthen our NAV over time. What did we unlock? Some of it was adding term or even removing options. Some added a change-of-use clause. Some added radius restrictions or removed exclusives.

We went lease-by-lease and extracted value when and where we could get it. For example, using geospatial data, we identified multiple assets across the portfolio to understand consumer traffic patterns to help us optimize our ability to obtain additional use rights as part of our negotiations with tenants. Notably, we are already in discussions for several new freestanding buildings across the portfolio. And we also obtained rights to add non-retail uses at a select group of assets. I'm often asked by the investment community about the future of retail and what product type I prefer, grocery or power. My answer in a post-COVID world is a hybrid that captures the credit of strong national tenants and the essential everyday traffic of the grocers.

A good example of this is our Town & Country asset outside of St. Louis, which has a Whole Foods, Target, Home Goods, supported by strong small shop offerings, including Athleta and Starbucks, with resilient cash flow that should be stable in most environments as evidenced by second quarter collections that were almost 12% higher than the portfolio overall. We have a significant opportunity to replicate the success of our Town & Country model through our project renaissance grocery initiative. Last quarter, I spoke about the strong grocery demand that has resulted from the pandemic. If anything, interest has only increased since then.

We are now in various stages of discussions on over seven new grocery deals. Our portfolio currently has 18 non-grocery anchored properties that could help accommodate the demand. We see this as a significant opportunity to improve the growth and resiliency of our cash flow. We also have opportunities to upgrade our existing grocer tenancy who may be weaker in profile or balance sheet. Overall, we are encouraged by the discussions thus far, and we look forward to reporting on our progress in the coming quarters. We are also seeing solid interest from off-price, fast food, fast casual, home improvement and medical tenants.

And yes, we are seeing an increase in demand from traditional mall tenants, which helps create tension to the market. But we are being extremely selective and generally avoiding nondiscount apparel tenants. Moving on to business continuity. As we have discussed in the past, although we were not planning for a pandemic, we were well prepared to handle the unique challenges resulting from widespread state and local shutdowns. For well over a year before March, we instituted a work-life balance initiative that allowed our employees to work from home one day a week. This made the transition to a work-from-home environment in early March relatively seamless. And I'm pleased to report the team has not skipped a beat since then.

At the property level, we continue to offer uninterrupted service while also focusing on creating a safe environment for our tenants and their customers. Early on, we implemented numerous safety measures and solutions at all of our centers, including the rollout of our exclusive Curbie Priority Pickup program. This program consists of dedicated 15-minute pickup-only parking spaces that are available for use by all of our shopping center customers. And it has been exceptionally well received by tenants and shoppers alike. Before I turn the call over to Mike, I would like to spend a few moments discussing our strategic outlook.

As some of you have heard me say, we are keeping two eyes on the business and a third eye on the future. COVID-19 has accelerated changes that were already under way and is introducing new changes that we are still learning about today. In this rapidly changing environment, our size is an advantage as we can quickly adapt our business to meet tomorrow's challenges while capitalizing on future opportunities. Our sector-leading operating results in 2019 reflected our size advantage as the significant improvements made to our portfolio quality and our balance sheet quickly translated into outperformance.

The underlying fundamental improvements that drove our business last year will serve us well as we come out of the pandemic while our partnership with GIC will provide fuel to fund our external growth plans. I can assure you that despite all the positive change implemented at RPT over the past two years, that our team is not sitting idle and will continue to turn over every aspect of the business to preserve and unlock value for our stakeholders.

With that, I will turn the call over to Mike.

Michael P. Fitzmaurice -- Executive Vice President And Chief Financial Officer

Thanks, Brian, and good morning, everyone. Today, I will review our current liquidity position, provide details about our second quarter 2020 operating and financial performance and end with some commentary about our business going forward. Last quarter, we drew down $225 million on our revolving line of credit to bolster our cash balance and as a precautionary measure. As our tenants reopened and visibility on our business improved, we made a decision to repay $50 million on the revolver during the quarter, leaving us with $175 million outstanding on our $350 million revolving line of credit.

Even after the paydown, we ended the second quarter with almost $250 million of cash on the balance sheet with no debt maturing over the balance of the year, only $37 million maturing next year and just $9 million of committed capital expenditures remaining in 2020. We also have only three mortgages outstanding and 91% of our NOIs unencumbered, providing us with another potential source of capital. As our business continues to normalize, we expect to repay additional amounts on our revolver as we balance liquidity, macro environment risk, interest expense and debt covenant compliance.

We ended the second quarter with trailing 12-month net debt to pro forma adjusted EBITDA of seven times, which reflected the negative impact from COVID-19. In light of the pandemic, we would expect our leverage to remain above our recent historical range but to normalize over time. Our long-term target range remains 5.5 to 6.5 times. Turning to results. Second quarter same-property NOI fell 13.2% versus a year ago, driven entirely by rent not probable of collection during the quarter that detracted 14.7% from same-property NOI growth, partially offset by 1.5% base rent growth. We ended the quarter at an occupancy rate of 92.9%, down 40 basis points sequentially but up 50 basis points versus last year.

Despite the challenges facing the industry, we were still able to sign 23 leases totaling 159,000 square feet. Blended rent spreads were up 2%, including 2.3% on renewals and a negative 4.4% on comparable new leases. Although our comparable new lease spread was negative for the quarter, this reflected just two leases with the decline primarily driven by a relocation of an existing tenant to accommodate a new noncomparable essential medical tenant that is expected to generate a strong mid-teens return on cost. In regard to our renewal spread, it was lower due to a proactive set of renewals we did with one anchor tenant in exchange for added term and the ability to have the right to bring additional relevant uses to a couple of our shopping centers.

Operating FFO per share for the second quarter was $0.16, a $0.10 decline from last quarter, primarily due to our estimate for rent that we did not deem collectible. As of July 31, pro rata uncollected tenant rent and expense reimbursements for the quarter was $17.7 million, of which $5.7 million or roughly 1/3 was deemed uncollectible. In addition, we reserved about $200,000 for uncollected balances prior to the second quarter, resulting in a total rent not probable of collection of $5.9 million or $0.07 per share. We also reserved $1.4 million of straight-line rent, which detracted another $0.02 per share.

Higher interest expense accounted for the remaining $0.01 of variance from last quarter, given our revolver draw at the end of the first quarter. Of the $17.7 million of uncollected tenant rent and expense reimbursements that I mentioned in my earlier remarks, we have signed or approved deferral agreements for roughly $12.1 million. In addition, we have reserved $4.5 million related to uncollected amounts in the second quarter, where we do not have a deferral agreement, leaving just $1.1 million of unaddressed accrued rent and recoveries. In short, we have addressed almost all of our second quarter uncollected rents via collection, deferral or reserve.

Also, notably, 93% of our deferred amounts are for national or regional tenants. Although we are not reinstating guidance at this time, I wanted to provide some additional color that may help you model going forward. We ended the quarter with signed not open ABR backlog of $1.6 million, which we expect will commence over the next 12 months. Rent expiration for the balance of the year total only 2.4% of pro rata ABR. From a cash flow perspective, the suspension of the third quarter 2020 common dividend will save about $18 million of capital. And as a reminder, our cash flow breakeven collection rate is about 60% versus our July collection level of 75%. Regarding our common dividend, no decision has been made on any future dividend beyond the third quarter.

However, based on our estimates of taxable income, no further dividends will be required to be paid in 2020 to satisfy REIT requirements. Turning to our disclosure. Please see pages 10, 12 and 35 of our quarterly supplemental, detailing the amounts of uncollected but accrued rents in our consolidated income statement, same-property NOI and joint venture tables. Additionally, please see Page 31 of our supplemental for a detailed breakdown on our rent collections and open status. Also, beginning in the second quarter, we are excluding the noncash accelerated amortization of above- and below-market leases from our operating FFO definition.

This accelerated amortization occurs in the instance when a specific tenant vacates prior to the original estimated lease termination date. For comparability, we have recasted prior periods to include this presentation within our supplemental. We made this change after discussions with analysts and investors and believe it will help in your analysis of the underlying earnings of the company by eliminating the volatility associated with this noncash item. And lastly, please note that this quarter, the shares associated with our convertible preferred equity were anti-dilutive, which may have created some unusual variances in your model. Please reach out to Vin or me if you need additional color.

With that, I will turn the call back to the operator to open the line for questions.

Questions and Answers:

Operator

[Operator Instructions] Your first question comes from Derek Johnston from Deutsche Bank. Please go ahead.

Derek Johnston -- Deutsche Bank -- Analyst

Hi. Regarding good morning. Thank you. An interesting observation, so your local small shop collections were higher than the overall portfolio collection rates. I think it was 82% for 2Q and 87% for July, even a bit ahead of peers. Can you comment on why that is? And also on the flip side, the anchor collections were a bit lower than average, it seems. We figure it could be merchandising or tenant mix. But could you please provide color on both?

Brian L. Harper -- President, Chief Executive Officer, and Trustee

Sure. Derek, let's start with small shop. About 1.5 years ago, we decentralized the leasing team. So we have leasing agents in our markets. And I think that's a good that was a good catalyst for this rent collection. So we have boots on the ground. We have obviously very strong tenant relationships in those markets. These leasing reps were knocking on doors, and there was no tenant left behind. We talked to every single one of the tenants. And that was a mixture, too, of some of the small shop of national tenants. And obviously, I imagine that, that number is sector-leading. Now getting into the anchor, a lot of those collections were are part of our deferral. So you'll see those turning back on very soon.

Derek Johnston -- Deutsche Bank -- Analyst

Okay. Great. And what was your process in determining the level of reserves needed, the $5.9 million to date? And then the second part of that question will be, what do you believe is the likelihood of future reserves further reserves in future quarters?

Michael P. Fitzmaurice -- Executive Vice President And Chief Financial Officer

Sure. Derek, thanks for the question. So I think the one thing that's proven and rearing seat again for RPT is our small size. It's proven to be an advantage. We have 48 assets, 10 million square feet. So we were able to take a very, very granular approach, tenant-by-tenant, bottom-up approach on what we deemed uncollectible. We've involved all our business units from leasing and asset management, finance, collections and accounting. And every assumption, every estimate that we have is based on a number of factors that were unique for really each tenant.

We looked at business models and long-term viability, the strength of the balance sheet, paying history, whether or not a personal guarantee or security deposit was backstopped in a lease. And then we got to our estimate. And you really can't really look at category-by-category and make an assumption because every single tenant discussion and estimate is based on a unique situation. So we feel pretty strongly about the reserve and confidence around it and that we've reserved against the risk that we have out there.

Derek Johnston -- Deutsche Bank -- Analyst

Thanks everyone.

Operator

Your next question comes from Todd Thomas from KeyBanc. Please go ahead.

Todd Thomas -- KeyBanc -- Analyst

Hi, thanks, good morning. First question, Brian, with more than 90% of the tenants open in the portfolio and on the after the 10% increase you saw in July collections versus second quarter, are you able to comment at all on August and what you expect in terms of the trajectory as we advance further into the quarter from the 75% level?

Brian L. Harper -- President, Chief Executive Officer, and Trustee

Yes. Sure, Todd. August right now is about 15% higher at the same period as July was. So to say the least, we expect August to ramp up quite nicely. And it's kind of going back to Derek's question, I couldn't be prouder of the team on this collections effort and even as part of the reserve. This was a several hour, several day initiative, where we turned over every rock. So we do see a lot of these deferrals coming off from the anchor tenants. And as you saw, our mid-80s small shop tenants, it's a pretty healthy number right now. But even we see that upsizing as well.

Todd Thomas -- KeyBanc -- Analyst

Okay. And in terms of the deferrals, with some of them starting to roll off already here, can you talk maybe, Mike, about the timing of the deferrals overall? Maybe can you quantify, I guess, the cadence of when the deferrals will burn off and how long some of those agreements were for?

Michael P. Fitzmaurice -- Executive Vice President And Chief Financial Officer

Yes. Sure, Todd. On average, we defer around two to three months in totality. And then in terms of the payback, 40% will get paid back in the second half of 2020 and the vast majority of the remaining will get paid back in 2021.

Todd Thomas -- KeyBanc -- Analyst

Okay. And then in terms of leasing, can you just comment on, I guess, sort of the time that it's taking to get deals done today and how that lease process is normalizing? And you commented a little bit about the negative new lease spreads in the quarter. It was a small sample size impacted by a relocation. But curious if you can comment on lease spreads and what you're seeing in terms of rental rates more broadly with what's in the pipeline today.

Brian L. Harper -- President, Chief Executive Officer, and Trustee

Yes. So it's really mixed across the board. It comes down to space-by-space, asset-by-asset, very partnership-driven. I think the good is shedding our bottom-tier real estate in late 2018 and early 2019, we have real estate where retailers want to be. Grocery has been a big demand driver, as I said, with over seven grocery deals in negotiation. And that's offering fair market deals on an accretive basis. For the most part, from a market rents, they have not deteriorated and tenants are behaving so far in negotiations. I think the demand of what we're seeing in addition to grocery is certainly off-price.

And we've had deals that are going to be added to the pipeline even come in on a post-COVID world. Fast food and fast casual, which drive-through is the new norm, and our initiative with the deferrals of allowing getting rid of some of these no-builds to allow for some of those is, I think, a great thing for NAV for the company and then home improvement and medical tenants in addition as well.

So Todd, it's really mixed. I think for the two deals that were negative this quarter, it was we would do those all day long to get a mid-teens IRR and bringing in a medical tenant that's taking up a lot of space in one of our centers in Columbus, Ohio. So it's mixed. Certainly, we have our tenants that are a little tougher. But for the most part, we haven't seen much deterioration on rent negotiations.

Todd Thomas -- KeyBanc -- Analyst

Okay. And just last question, Mike, how much ABR exposure in total do you have across the portfolio to tenants that have filed bankruptcy or in the process of reorganizing?

Michael P. Fitzmaurice -- Executive Vice President And Chief Financial Officer

About 3% or so, Todd. Majority of that is related to the ascena brand. And about 2/3 of that, we did reserve for in the quarter. The other 1/3 was representative of tenants that had very, very strong locations with either high sales, low occupancy costs, low rent per square foot that we have a pretty good confidence level that those leases would be assumed.

Todd Thomas -- KeyBanc -- Analyst

Okay, thank you.

Operator

Your next question comes from Craig Schmidt from Bank of America. Please go ahead.

Craig Schmidt -- Bank of America -- Analyst

Good morning. You've done a good job holding on to occupants. But given the accelerated store closings that are starting to occur, where do you think occupancy can be by year-end? Would it be lower than we are at the end of the second quarter?

Brian L. Harper -- President, Chief Executive Officer, and Trustee

Yes. It's tough to say right now, Craig. I mean what we've been doing to and as I think as healthy occupancy is early on, we've been releasing the Pier one, so we only had 2. We've been releasing the dressbarns, even if they've had term. And we've been releasing Gap full-price stores, and I believe we had one left with a start of five or 6. So we're with that in mind, this was even a pre COVID of replacing weak tenants with stronger tenants. So I don't know where this is going to shake out.

A lot of it is on this pandemic, a lot of it is done by municipality, of open or closed, a lot of it, the mandate. So I always say within the firm, control the controllables. I think we're doing a darn good job of that. It's the macro that I can't predict and can't give you an answer on where from an occupancy perspective.

Craig Schmidt -- Bank of America -- Analyst

Okay. And then just is there a potential for leasing spreads to increase sequentially, given what happened in the second quarter?

Brian L. Harper -- President, Chief Executive Officer, and Trustee

Yes, absolutely. I think that was an anomaly. And again, that was something we would do again and again and again to get a mid-teens return. The grocery deals that I've talked about are very accretive and are preleasing tenants at a much lower rent. And the pipeline, even of off-price and medical, those deals are on an accretive level as well. So generally, I think that's an anomaly and a onetime occurrence. And we definitely see those improving over the next several quarters.

Craig Schmidt -- Bank of America -- Analyst

Okay, thank you.

Operator

Your next question comes from Floris Van Dijkum from Compass Point. Please go ahead.

Floris Van Dijkum -- Compass Point -- Analyst

Morning, guys. A question for you on your it looks like you're reserving about 1/3 of your uncollected rents. Maybe if you can give us a little bit of a is the bulk of those reserves, are they for national tenants? Or are they for small shop tenants?

Michael P. Fitzmaurice -- Executive Vice President And Chief Financial Officer

Floris, I think I don't want to get specific about what we reserved for in terms of category. It's pretty broad-based. But I'll go back to the what our portfolio consists of. Almost 90% of our portfolio is national and 10% being local. And you saw that our collections for the small shop was mid-80s, mid- to high 80s, which was a very, very strong number that Brian described earlier in his commentary. So it's predominantly, I would say, more national-weighted than that.

Floris Van Dijkum -- Compass Point -- Analyst

And maybe if you could give how do you feel about the outlook right now for as the investment community is looking at trying to balance the reserves versus the expected occupancy declines that should occur if your reserves are correct, how should people think about those going forward, where you could see as I'm thinking about it, can we see reserves declining even though occupancy levels are declining as well?

Michael P. Fitzmaurice -- Executive Vice President And Chief Financial Officer

Yes. I mean, look, it's hard to have a connective tissue between what your bad debt reserves are and occupancy. I think we're in a very, very fluid environment right now. The there's a lot of variables contained within the pandemic side, whether it be vaccine treatments or the deployment of those two items to the general population. So we're dealing with that. And facts change with tenants quarter-to-quarter. And we'll revisit those facts like we went through this past quarter, next quarter.

Some of the reserves that we had set out, some of those leases that are in bankruptcy could get assumed. Some could get rejected. And at that point, you'll start seeing some of the impact to occupancy. But you can there's not a connective tissue right now between bad debt reserves and occupancy. So it's way too early to talk about what the economic impact of occupancy and/or NOI will be as we progress through the year, given the fluidity of the environment.

Brian L. Harper -- President, Chief Executive Officer, and Trustee

And as I said before, I mean, our proactive nature on some of these tenants that have been on our watch list for several quarters, pre COVID, post COVID, we've done as good of a job as any on replacing that in a quick matter with a credit tenant and stronger sales. So...

Michael P. Fitzmaurice -- Executive Vice President And Chief Financial Officer

Yes. And one thing I would add there, too, Floris, during the quarter, of our quarterly billings, about $2 million or so was related to tenants that went to cash basis accounting. During the second quarter, we collected about 10% of that or so. So far in July, we're already up at 30%. So if you extrapolate that, through the remaining part of the quarter, for August and September, we're going to be up about $500,000 or so relative to the second quarter. So again, facts change, collections change and things are very fluid.

Floris Van Dijkum -- Compass Point -- Analyst

Fair enough. It's we're all trying to figure out exactly what's going on here. Maybe one last question for me. And Brian, I'd love to get your comments on where what do you think is happening to cap rates? And what do you obviously, there's not much activity going on in the markets right now. But where do you see cap rates trending? Are they going up? Are they going down? And love to get your thoughts also as you try to deploy some of your GIC capital, where do you think that is best employed?

Brian L. Harper -- President, Chief Executive Officer, and Trustee

Yes. So I think cap rates, it all depends on the NOI right now. So in my view, it's very early, outside of triple net or distressed retail, where you're just looking at replacement cost. So the NOI obviously goes hand-on-hand with the cap rate. So just getting a handle on what's going to be what's going to stick for cash flow, I think it's way too early and hence, not a lot of activity in the investment world. That being said, on the GIC, we're obviously in conversation with them a lot.

They see a lot of deal flow that that we would normally won't see and vice versa. Relationship has never been better, and we're talking many things about many things just strategic in nature about private companies or one-offs or grocery-anchored centers across the country. We're in dialogue with special servicer and receivers. Engines are fired up. And we're waiting on dislocation. And we see this obviously as a major factor and a catalyst for the future of the company.

Floris Van Dijkum -- Compass Point -- Analyst

Thanks, Brent.

Brian L. Harper -- President, Chief Executive Officer, and Trustee

Thanks.

Operator

[Operator Instructions] Your next question comes from Mike Mueller from JPMorgan. Please go ahead.

Mike Mueller -- JPMorgan -- Analyst

Yeah, hi. Can you hear me?

Brian L. Harper -- President, Chief Executive Officer, and Trustee

Yes.

Michael P. Fitzmaurice -- Executive Vice President And Chief Financial Officer

Yes.

Mike Mueller -- JPMorgan -- Analyst

Okay. Yes. My connection is terrible. I think I missed a good chunk of what you guys were saying. But a quick question. So for the $5.5 million reserves, how much of it is tied to the deferrals you've made thus far? And then is any of the $5.5 million tied to CAM, aside from just base rent, reimbursement for base rents?

Michael P. Fitzmaurice -- Executive Vice President And Chief Financial Officer

Good question, Mike. But of what we reserve for against that of the deferrals, about $1.2 million of that $5.5 million or so is reserved against those deferrals. Hopefully, that answers your question. And then and the second part of your question, the our reserves contemplate both rents and some triple net charges. I would say the vast, vast, vast majority has been on the rent side because most of the tenants are paying their triple nets.

Mike Mueller -- JPMorgan -- Analyst

Got it, OK.

Michael P. Fitzmaurice -- Executive Vice President And Chief Financial Officer

Thank you.

Operator

There are no further questions at this time. I would now like to turn the floor back over to Mr. Harper for closing comments.

Brian L. Harper -- President, Chief Executive Officer, and Trustee

Thank you. When I first arrived about two years ago, I saw tremendous potential at RPT and quickly built a team and a plan to unlock that potential. This translated into sector-leading performance in our first full year that gave me comfort that we were on the right path.

While the COVID-19 pandemic has disrupted our business plans in the near term, it has also revealed the true character of this organization, which has given me even greater confidence in RPT's future success. Thank you all for joining our call this morning. And please reach out to Mike or Vin, if you have any further questions. Have a great day.

Duration: 37 minutes

Call participants:

Vin Chao -- Senior Vice President Finance

Brian L. Harper -- President, Chief Executive Officer, and Trustee

Michael P. Fitzmaurice -- Executive Vice President And Chief Financial Officer

Derek Johnston -- Deutsche Bank -- Analyst

Todd Thomas -- KeyBanc -- Analyst

Craig Schmidt -- Bank of America -- Analyst

Floris Van Dijkum -- Compass Point -- Analyst

Mike Mueller -- JPMorgan -- Analyst

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