Retail Properties of America : Quarterly Supplemental Information - Second Quarter 2021

RPAI.com | NYSE: RPAI

Q2 2021

SUPPLEMENTAL INFORM ATION

1

2

3

4

5

TABLE OF CONTENTS

EARNINGS RELEASE..........................................................................	i-vii
FINANCIAL SUMMARY
Condensed Consolidated Balance Sheets.................................................	1
Condensed Consolidated Statements of Operations................................	2
Funds From Operations Attributable to Common Shareholders,
Operating FFO Attributable to Common Shareholders
and Additional Information.......................................................................	3
Supplemental Financial Statement Detail.................................................	4
Same Store Net Operating Income............................................................	5
Capitalization.............................................................................................	6
Covenants..................................................................................................	7
Summary of Indebtedness........................................................................	8
TRANSACTION SUMMARY
Development Projects...............................................................................	9-12
Acquisitions and Dispositions....................................................................	13
PORTFOLIO SUMMARY
Retail Market Summary.............................................................................	14
Retail Operating Portfolio Occupancy.......................................................	15
Top Retail Tenants.....................................................................................	16
Retail Leasing Activity Summary................................................................	17
Retail Lease Expirations.............................................................................	18
OTHER INFORMATION
COVID-19 Disclosure - Tenant Resiliency and Rent Collections................	19
COVID-19 Disclosure - Supplemental Base Rent and Uncollectible
Lease Income Information.........................................................................	20
Non-GAAP Financial Measures and Reconciliations..................................	21-24

Retail Properties of America, Inc. | 2021 Spring Road, Suite 200 | Oak Brook, Illinois 60523 | 855.247.RPAI | www.rpai.com

RETAIL PROPERTIES OF AMERICA, INC. REPORTS

SECOND QUARTER AND YEAR TO DATE 2021 RESULTS

Oak Brook, IL - August 3, 2021 - Retail Properties of America, Inc. (NYSE: RPAI) (the "Company") today reported financial and operating results for the quarter and six months ended June 30, 2021.

FINANCIAL RESULTS

For the quarter ended June 30, 2021, the Company reported:

• Net income attributable to common shareholders of $15.4 million, or $0.07 per diluted share, compared to net loss attributable to common shareholders of $(7.3) million, or $(0.04) per diluted share, for the same period in 2020;
• Funds from operations (FFO) attributable to common shareholders of $56.9 million, or $0.27 per diluted share, compared to $36.1 million, or $0.17 per diluted share, for the same period in 2020;
• Operating funds from operations (Operating FFO) attributable to common shareholders of $56.9 million, or $0.27 per diluted share, compared to $36.1 million, or $0.17 per diluted share, for the same period in 2020;
• Approximately $6 million recorded within lease income, equating to $0.03 per diluted share, due to reversals of uncollectible lease income, primarily consisting of amounts received during the second quarter of 2021 from cash-basis and vacated tenants that pertain to periods prior to the second quarter of 2021;
• Cash collections as of July 26, 2021 of 98% of billed second quarter 2021 base rent, up from 96% of billed first quarter 2021 base rent as previously reported;
• Cash collections as of June 30, 2021 of 95% of previously deferred base rent that was due during the second quarter of 2021; and
• Cash-basistenants as of June 30, 2021 represent 9% of annualized base rent (ABR), down from 11% of ABR as of March 31, 2021.

For the six months ended June 30, 2021, the Company reported:

• Net income attributable to common shareholders of $20.1 million, or $0.09 per diluted share, compared to $15.0 million, or $0.07 per diluted share, for the same period in 2020;
• FFO attributable to common shareholders of $109.2 million, or $0.51 per diluted share, compared to $98.6 million, or $0.46 per diluted share, for the same period in 2020;
• Operating FFO attributable to common shareholders of $109.3 million, or $0.51 per diluted share, compared to $93.5 million, or $0.44 per diluted share, for the same period in 2020; and
• Approximately $11 million recorded within lease income, equating to $0.05 per diluted share, due to reversals of uncollectible lease income, primarily consisting of amounts received during the first half of 2021 from cash-basis and vacated tenants that pertain to periods prior to 2021.

Subsequent to quarter end, as previously announced, the Company entered into a definitive Agreement and Plan of Merger with Kite Realty Group Trust (Kite Realty Group), pursuant to

n Retail Properties of America, Inc. T: 855.247.RPAI

www.rpai.com 2021 Spring Road, Suite 200 Oak Brook, IL 60523

which RPAI will merge with and into a subsidiary of Kite Realty Group, with the subsidiary surviving the merger. Immediately following the closing of the merger, such subsidiary will merge with and into Kite Realty Group, L.P., the operating partnership of Kite Realty Group, so that all of the assets of Kite Realty Group will be owned at or below the operating partnership level. The board of directors of the Company and the board of trustees of Kite Realty Group unanimously approved the transaction. The parties expect the transaction to close during the fourth quarter of 2021, subject to the satisfaction of customary closing conditions, including the approval of both the Company's and Kite Realty Group's shareholders.

OPERATING RESULTS

For the quarter ended June 30, 2021, the Company's portfolio results were as follows:

• 32.7% increase in same store net operating income (NOI) over the comparable period in 2020;
• Retail portfolio occupancy: 91.8% at June 30, 2021, up 30 basis points from 91.5% at March 31, 2021 and down 180 basis points from 93.6% at June 30, 2020;
• Retail portfolio percent leased, including leases signed but not commenced: 93.4% at June 30, 2021, up 70 basis points from 92.7% at March 31, 2021 and down 150 basis points from 94.9% at June 30, 2020;
• Retail portfolio leased to occupied spread percentage: 160 basis points at June 30, 2021, up 40 basis points from 120 basis points at March 31, 2021 and up 30 basis points from 130 basis points at June 30, 2020, representing approximately $8.3 million in ABR and $26.32 in ABR per square foot;
• Total retail portfolio ABR per occupied square foot of $19.37 at June 30, 2021, up 0.5% from $19.28 ABR per occupied square foot at March 31, 2021 and down 0.4% from $19.45 ABR per occupied square foot at June 30, 2020;
• 904,000 square feet of retail leasing transactions comprised of 113 new and renewal leases;
• A blended re-leasing spread of positive 5.0%, comprised of comparable cash leasing spreads of 12.7% on new leases and 2.8% on renewal leases;
• Signed leases at One Loudoun Downtown for an additional 42 of Pad G's 99 multi-family rental units, branded Vyne, which were 64% leased and 38% occupied at June 30, 2021; and
• Signed a lease representing an additional 26% of Pad G's 33,000 square feet of office space, branded One Endicott, which was 100% leased at June 30, 2021.

For the six months ended June 30, 2021, the Company's portfolio results were as follows:

• 13.0% increase in same store NOI over the comparable period in 2020;
• 1,591,000 square feet of retail leasing transactions comprised of 226 new and renewal leases; and
• A blended re-leasing spread of positive 5.3%, comprised of comparable cash leasing spreads of 15.2% on new leases and 2.9% on renewal leases.

INVESTMENT ACTIVITY

Expansions and Redevelopments

The Company continues to make progress on the execution of its active expansion and redevelopment projects and invested $29.9 million during the first half of 2021 primarily at Circle East, One Loudoun Downtown, The Shoppes at Quarterfield and Southlake Town Square, with the vast majority of this investment related to the One Loudoun Downtown Pads G & H expansion project.

ii

Active Projects

One Loudoun Downtown

During the quarter, the Company and KETTLER, its joint venture partner for the multi-family component of the mixed-use expansion of Pads G & H at One Loudoun Downtown located in the Washington, D.C. metropolitan statistical area (MSA), signed leases for an additional 42 of Pad G's 99 multi-family rental units, branded Vyne, which were 64% leased and 38% occupied at June 30, 2021. The Company also signed a lease representing an additional 26% of Pad G's 33,000 square feet of office space, branded One Endicott, which was 100% leased at June 30, 2021.

At Pad H, which includes 279 multi-family rental units, construction continues to progress, including in-unit installation of final finishes and appliances as well as interior amenity finishes.

The aggregate One Loudoun Downtown Pads G & H expansion project, which includes 378 multi-family rental units as well as 67,000 square feet of commercial gross leasable area, remains on track to stabilize in Q2 - Q3 2022.

Circle East

During the quarter, the Company signed Brightside Boutique for in-line space at its 82,000 square foot Circle East mixed-use project located in Towson, MD within the Baltimore MSA, bringing the project to 29% leased. Madison Reed, another in-line tenant, opened during the quarter.

Other Projects

At the 100% leased, single-tenant pad development at Southlake Town Square, the tenant commenced rent payment on July 1, 2021. The Company continues construction at The Shoppes at Quarterfield reconfiguration, which is 100% leased, with targeted stabilization in Q1

- Q2 2022.

Acquisitions

Subsequent to quarter end, the Company closed on the acquisition of Arcadia Village, a 100% leased neighborhood center located in the Phoenix MSA, for a gross purchase price of $21.0 million.

BALANCE SHEET

As of June 30, 2021, the Company had no outstanding unsecured debt principal due until November 2023, a fully undrawn $850.0 million unsecured revolving line of credit and approximately $917.0 million in total available liquidity, compared to $888.0 million as of March 31, 2021, and $727.3 million as of June 30, 2020.

Additionally, as of June 30, 2021, the Company had $1.8 billion of gross consolidated indebtedness with a weighted average contractual interest rate of 4.19% and a weighted average maturity of 5.4 years, up from 4.1 years as of June 30, 2020, and a net debt to quarterly annualized adjusted EBITDAre ratio of 5.6x.

Subsequent to quarter end, as previously announced, the Company closed on the amendment and extension of its $850.0 million unsecured revolving line of credit (Unsecured Revolving Line of Credit). This amendment and extension maintains the Company's existing $850.0 million borrowing capacity, financial covenants, including the 6.50% capitalization rate used to calculate certain financial covenants, and leverage-based grid pricing as well as:

• Expands the available accordion feature, enabling the Company to increase borrowing capacity by up to $750.0 million to a total of $1.6 billion, subject to lender approval;

iii