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

  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

Business Wire

OAK BROOK, Ill. -- January 14, 2013

Retail Properties of America, Inc. (NYSE: 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.

Contact:

Retail Properties of America, Inc.
Sarah Byrnes
Vice President – Investor Relations
(630) 634-4243
byrnes@rpai.com
 
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