8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 4, 2021

Retail Value Inc.

(Exact name of Registrant as Specified in Its Charter)

Ohio	1-38517	82-4182996
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
3300 Enterprise Parkway Beachwood, Ohio		44122
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (216) 755-5500

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Shares, Par Value $0.10 Per Share	RVI	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Item 2.02 Results of Operations and Financial Condition.

On May 4, 2021, Retail Value Inc. (the “Company”) issued a quarterly financial supplement containing financial and property information of the Company (“Quarterly Supplement”) for the three months ended March 31, 2021, which includes a News Release containing financial results of the Company.  A copy of the Company’s Quarterly Financial Supplement dated March 31, 2021, is attached hereto as Exhibit 99.1, which is incorporated herein by reference.  This information shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, except as shall be set forth by specific reference in such filing.  

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit

No. Description

99.1 Quarterly financial supplement dated as of March 31, 2021.

104 The cover page from the Company’s Current Report on Form 8-K for the

period ended March 31, 2021 has been formatted in Inline XBRL.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Retail Value Inc.
Date:  May 4, 2021	By:	/s/ Christa A. Vesy
	Name: Christa A. Vesy
	Title:   Executive Vice President, Chief Financial Officer,              Chief Accounting Officer and Treasurer

EX-99.1

Exhibit 99.1

Retail Value Inc. Quarterly Financial Supplement For the period ended March 31, 2021 rvi

R

Retail Value Inc.

Table of Contents

Section	Page
Earnings Release & Financial Statements
Press Release	1-6
Company Summary
Portfolio Summary	7
Top 35 Tenants	8
Lease Expirations	9
Investments
Dispositions	10
Debt Summary
Capital Structure	11
Shopping Center Summary
Property List	12
Reporting Policies and Other
Notable Accounting and Supplemental Policies	13-14
Non-GAAP Measures	15-16

RVI considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods.  Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.  For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements.  There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, the Company’s actual property NOI for 2021, which could differ materially from the NOI projections included in the press release; the impact of the COVID-19 pandemic on the Company’s ability to manage its properties and finance its operations and on tenants’ ability to operate their businesses, generate sales and meet their financial obligations, including the obligation to pay ongoing and deferred rents; our ability to sell assets on commercially reasonable terms; our ability to complete dispositions of assets under contract; property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from extreme weather conditions and natural disasters in locations where we own properties, and the ability to estimate accurately the amounts thereof; sufficiency and timing of any insurance recovery payments related to damages from extreme weather conditions and natural disasters; local conditions such as an increase in the supply of, or a reduction in demand for, retail real estate in the area; the impact of e-commerce; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant and the impact of any such event on rental income from other tenants at our properties; our ability to secure equity or debt financing on commercially acceptable terms or at all; impairment charges; our ability to enter into definitive agreements with regard to our financing arrangements and  our ability to satisfy conditions to the completion or extension of these arrangements; changes with respect to the Puerto Rican economy and government; the ability to secure and maintain management services provided to us, including pursuant to our external management agreement with one or more subsidiaries of SITE Centers; and our ability to maintain our REIT status.  For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company’s most recent report on Forms 10-K and 10-Q.  The impacts of the COVID-19 pandemic may also exacerbate the risks described therein, any of which could have a material effect on the Company.  The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

Retail Value Inc.		For additional information:
3300 Enterprise Parkway		Christa Vesy, EVP and
Beachwood, OH 44122 216-755-5500		Chief Financial Officer

Retail Value Inc. Reports First Quarter 2021 Operating Results

BEACHWOOD, OHIO, May 4, 2021 – Retail Value Inc. (NYSE: RVI) today announced operating results for the quarter ended March 31, 2021.  

Results for the Quarter and Recent Activity

• First quarter net income attributable to common shareholders was $3.2 million, or $0.15 per diluted share, as compared to net loss of $13.1 million, or $0.66 per share, in the year-ago period. The period-over-period increase in net income is primarily attributable to reduced impairment charges, interest expense and debt extinguishment costs partly offset by reduced rental income stemming from the impact of the COVID-19 pandemic and asset sales.  

• First quarter operating funds from operations attributable to common shareholders (“Operating FFO” or “OFFO”) was $18.6 million, or $0.89 per diluted share, compared to $20.3 million, or $1.03 per diluted share, in the year-ago period. The period-over-period decrease in OFFO is primarily attributable to the impact of the COVID‑19 pandemic and asset sales partly offset by lower interest expense.

• The Continental U.S. leased rate was 86.7% at March 31, 2021 as compared to 88.9% at December 31, 2020. The decrease in the leased rate primarily related to the expiration and termination of two dark anchor tenant leases in the first quarter of 2021.

• The Puerto Rico leased rate was 88.3% at March 31, 2021 as compared to 89.2% at December 31, 2020 primarily due to the legal resolution and termination of dark non-paying tenants.

• Exercised its first extension option under its mortgage loan agreement in which the loan’s maturity was extended to March 9, 2022. In addition, extended the revolving credit facility maturity date to February 9, 2022.

• In April 2021, sold four properties (Marketplace of Brown Deer, Noble Town Center, Plaza Vega Baja and Uptown Solon) for a gross sales price of $38.9 million. In April 2021, net proceeds from the sale of Marketplace of Brown Deer along with unrestricted cash on hand aggregating $23.6 million were used to repay the mortgage loan. The majority of the net proceeds from the other three asset sales are expected to repay $24.9 million of the mortgage loan in May 2021.

Key Quarterly Operating Results

The following metrics are as of March 31, 2021:

	Continental U.S.	Puerto Rico
Shopping Center Count	11	11
Gross Leasable Area (thousands)	4,533	3,918
Base Rent PSF	$13.17	$19.60
Leased Rate	86.7%	88.3%
Commenced Rate	86.1%	87.6%
NOI-Quarter (millions)	$11.9	$13.4

Impact of the COVID-19 Pandemic

The impact to the portfolio as of April 23, 2021 is as follows:

	Continental U.S.	Puerto Rico
% of Tenants open and operating (average base rent)	100%	99%
% of Second quarter 2020 rent paid	87%	80%
% of Third quarter 2020 rent paid	92%	90%
% of Fourth quarter 2020 rent paid	96%	92%
% of First quarter 2021 rent paid	98%	94%

1

• For the total portfolio, 99% of tenants were open for business as of April 23, 2021 (based on average base rents). In Puerto Rico, while 99% of the Company’s tenants were open for business as of April 23, 2021, most remain subject to significant capacity and operating restrictions.

• The Company calculates the aggregate percentage of rents paid for assets owned as of March 31, 2021, by comparing the amount of tenant payments received as of the date presented to the amount billed to tenants during the period, which billed amount includes abated rents, rents subject to deferral arrangements and rents owing from bankrupt tenants that were in possession of the space and billed. For the purposes of reporting the percentage of aggregate base rents collected for a given period, when rents subject to deferral arrangements are later paid, those payments are allocated to the period in which the rent was originally owed.  

• As of April 23, 2021, agreed upon rent deferral arrangements that remain unpaid represented approximately 5% of second quarter 2020 rents, 4% of third quarter 2020 rents and 3% of fourth quarter 2020 rents. There were no rent deferral arrangements that remain unpaid with respect to first quarter 2021 rents. The Company granted abatements to tenants representing approximately 6% of second quarter 2020 rents and 1% of third quarter 2020 rents. There were no significant abatements of fourth quarter 2020 rents or first quarter 2021 rents.

• At March 31, 2021, the balance sheet reflects $2.1 million of net deferred rents, a majority of which is expected to be repaid in 2021.

• During the first quarter of 2021, the Company’s rental revenue and NOI benefited from $1.7 million of payments related to 2020 rental income received from cash-basis tenants.

Property Net Operating Income (NOI) Projection

The Company has updated its projection of 2021 NOI. The Company projects, based on the assumptions below, 2021 property level net operating income (NOI) to be as follows:

Portfolio	NOI Projection
Continental U.S.	$35 – $40 million
Puerto Rico	$48 – $54 million

These Projections:

• Exclude all properties sold to date and assume all properties owned by the Company on May 4, 2021 are held through year end;

• Reflect payment of property management fees;

• Assume tenant collections at 100% for second quarter of 2021 through fourth quarter of 2021 (as compared to first quarter 2021 rent collections of 98% and 94% for the continental U.S. and Puerto Rico portfolios, respectively) and

• Assume no reserve reversals related to 2020 rents for the second quarter of 2021 through fourth quarter of 2021.

Because these projections are based on assumptions that are subject to change, including, without limitation, the Company’s actual tenant collections, they should not be viewed as guidance.

About RVI

RVI is an independent publicly traded company trading under the ticker symbol “RVI” on the New York Stock Exchange. RVI holds assets in the continental U.S. and Puerto Rico and is managed by one or more subsidiaries of SITE Centers Corp. RVI focuses on realizing value in its business through operations and sales of its assets. Additional information about RVI is available at www.retailvalueinc.com.

Non-GAAP Measures

Funds from Operations (“FFO”) is a supplemental non-GAAP financial measure used as a standard in the real estate industry and is a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that both FFO and Operating FFO provide additional indicators of the financial performance of a REIT. The Company also believes that FFO and Operating FFO more appropriately measure the core operations of the Company and provide benchmarks to its peer group.

FFO is generally defined and calculated by the Company as net income (loss) (computed in accordance with generally accepted accounting principles in the United States (“GAAP”)) adjusted to exclude (i) gains and losses from disposition of real estate property and related investments, which are presented net of taxes, if any, (ii) impairment charges on real estate property and related investments and (iii) certain non-cash items. These non-cash items principally include real property depreciation and amortization of intangibles. The Company’s calculation of FFO is consistent with the definition of FFO provided by NAREIT. The Company calculates Operating FFO by excluding certain non-operating charges and income.

2

Operating FFO is useful to investors as the Company removes non-comparable charges and income to analyze the results of its operations and assess performance of the core operating real estate portfolio.Other real estate companies may calculate FFO and Operating FFO in a different manner.

The Company also uses net operating income (“NOI”), a non-GAAP financial measure, as a supplemental performance measure. NOI is calculated as property revenues less property-related expenses. The Company believes NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and, when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis.

FFO, Operating FFO and NOI do not represent cash generated from operating activities in accordance with GAAP, are not necessarily indicative of cash available to fund cash needs and should not be considered as alternatives to net income computed in accordance with GAAP as indicators of the Company’s operating performance or as alternatives to cash flow as a measure of liquidity. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in this release herein. Reconciliation of 2021 projected NOI to the most directly comparable GAAP financial measure is not provided because the Company is unable to provide such reconciliation without unreasonable effort.

Safe Harbor

RVI considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, the Company’s actual property NOI for 2021, which could differ materially from the NOI projections included in this press release; the impact of the COVID-19 pandemic on the Company’s ability to manage its properties and finance its operations and on tenants’ ability to operate their businesses, generate sales and meet their financial obligations, including the obligation to pay ongoing and deferred rents; our ability to sell assets on commercially reasonable terms; our ability to complete dispositions of assets under contract; property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from extreme weather conditions and natural disasters in locations where we own properties, and the ability to estimate accurately the amounts thereof; sufficiency and timing of any insurance recovery payments related to damages from extreme weather conditions and natural disasters; local conditions such as an increase in the supply of, or a reduction in demand for, retail real estate in the area; the impact of e-commerce; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant and the impact of any such event on rental income from other tenants at our properties; our ability to secure equity or debt financing on commercially acceptable terms or at all; impairment charges; our ability to enter into definitive agreements with regard to our financing arrangements and our ability to satisfy conditions to the completion or extension of these arrangements; changes with respect to the Puerto Rican economy and government; the ability to secure and maintain management services provided to us, including pursuant to our external management agreement with one or more subsidiaries of SITE Centers; and our ability to maintain our REIT status. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company’s most recent report on Forms 10-K and 10-Q. The impacts of the COVID-19 pandemic may also exacerbate the risks described therein, any of which could have a material effect on the Company. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

3

Retail Value Inc.

Income Statement

	in thousands, except per share
		1Q21	1Q21	Total	Total
		Continental U.S.	Puerto Rico	1Q21	1Q20
	Revenues:
	Rental income (1)	$18,153	$23,269	$41,422	$50,330
	Other property revenues	17	20	37	39
		18,170	23,289	41,459	50,369
	Expenses:
	Operating and maintenance (2)	3,085	8,787	11,872	13,614
	Real estate taxes	3,134	1,132	4,266	5,719
		6,219	9,919	16,138	19,333
	Net operating income (3)	11,951	13,370	25,321	31,036
	Other income (expense):
	Asset management fees			(1,770)	(2,324)
	Interest expense, net			(3,991)	(7,292)
	Depreciation and amortization			(13,358)	(16,470)
	General and administrative			(865)	(1,077)
	Impairment charges			(2,010)	(15,910)
	Debt extinguishment costs, net			(130)	(3,965)
	Other income, net			0	334
	Gain on disposition of real estate, net (4)			121	2,674
	Income (loss) before other items			3,318	(12,994)
	Tax expense			(109)	(73)
	Net income (loss)			$3,209	($13,067)
	Weighted average shares – Basic & Diluted – EPS			20,916	19,749
	Earnings (loss) per common share – Basic & Diluted			$0.15	($0.66)
(1)	Revenue items:
	Minimum rents	11,567	13,329	24,896	31,391
	Ground lease minimum rents	839	1,804	2,643	3,206
	Recoveries	4,461	5,834	10,295	12,896
	Uncollectible revenue	992	(754)	238	(858)
	Percentage and overage rent	18	1,439	1,457	1,017
	Ancillary and other rental income	191	1,617	1,808	2,178
	Lease termination fees	85	0	85	500
(2)	Operating expenses:
	Property management fees	(701)	(1,564)	(2,265)	(2,552)
(3)	NOI from assets sold	23	(50)	(27)	1,680
(4)	SITE Centers disposition fees			0	(1,556)

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Retail Value Inc.

Reconciliation: Net Loss to FFO and Operating FFO

and Other Financial Information

in thousands, except per share
	1Q21	1Q20
Net income (loss) attributable to Common Shareholders	$3,209	($13,067)
Depreciation and amortization of real estate	13,341	16,453
Impairment of real estate	2,010	15,910
Gain on disposition of real estate, net	(121)	(2,674)
FFO attributable to Common Shareholders	$18,439	$16,622
Debt extinguishment, transaction, other, net	130	3,631
Total non-operating items, net	130	3,631
Operating FFO attributable to Common Shareholders	$18,569	$20,253
Weighted average shares and units – Basic & Diluted – FFO & OFFO	20,916	19,749
FFO per share – Basic & Diluted	$0.88	$0.84
Operating FFO per share – Basic & Diluted	$0.89	$1.03
Common stock dividends declared, per share	N/A	N/A
Certain non-cash items:
Straight-line rent	(565)	(1,108)
Straight-line fixed CAM	70	101
Loan cost amortization	(781)	(1,020)
Non-real estate depreciation expense	(17)	(17)
Capital expenditures:
Maintenance capital expenditures	328	18
Tenant allowances and landlord work	608	591
Leasing commissions - SITE Centers	778	1,231
Leasing commissions - external	133	87
Hurricane restorations	1,848	3,474

5

Retail Value Inc.

Balance Sheet

	$ in thousands
		At Period End
		1Q21	4Q20
	Assets:
	Land	$397,024	$397,699
	Buildings	1,030,973	1,031,886
	Fixtures and tenant improvements	131,780	134,335
		1,559,777	1,563,920
	Depreciation	(602,879)	(593,691)
		956,898	970,229
	Construction in progress and land	1,887	1,515
	Real estate, net	958,785	971,744
	Cash	72,741	56,849
	Restricted cash (1)	63,557	115,939
	Receivables and straight-line (2)	22,053	25,302
	Intangible assets, net (3)	8,529	9,452
	Other assets, net (4)	14,659	16,590
	Total Assets	1,140,324	1,195,876
	Liabilities and Equity:
	Secured debt (5)	294,069	344,485
	Dividends payable	0	23,002
	Other liabilities (6)	34,239	38,603
	Total Liabilities	328,308	406,090
	Redeemable preferred equity	190,000	190,000
	Common shares	2,108	1,983
	Paid-in capital	740,130	721,234
	Distributions in excess of net income	(120,219)	(123,428)
	Common shares in treasury at cost	(3)	(3)
	Total Equity	622,016	599,786
	Total Liabilities and Equity	$1,140,324	$1,195,876
(1)	Asset sale proceeds	0	51,168
	Hurricane related escrows	37,169	38,469
	Other lender required escrows	26,388	26,302
(2)	SL rents (including fixed CAM), net	13,189	13,683
(3)	Operating lease right of use asset	1,456	1,509
(4)	Note receivable	3,000	3,000
(5)	Unamortized loan costs	(8,965)	(9,718)
(6)	Operating lease liabilities	2,540	2,602
	Below-market leases, net	13,529	13,829

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Retail Value Inc.

Portfolio Summary

GLA in thousands
	3/31/2021	12/31/2020	9/30/2020	6/30/2020	3/31/2020
Shopping Center Count
Operating Centers	22	22	23	25	26
Continental U.S.	11	11	11	13	14
Puerto Rico	11	11	12	12	12
Gross Leasable Area (GLA)
Owned and Ground Lease	8,451	8,451	8,905	9,823	10,174
Continental U.S.	4,533	4,533	4,539	5,457	5,805
Puerto Rico	3,918	3,918	4,366	4,366	4,369
Unowned	1,131	1,131	1,125	1,305	1,305
Quarterly Operational Overview
Continental U.S.
Base Rent PSF	$13.17	$13.35	$13.31	$13.60	$13.00
Leased Rate	86.7%	88.9%	90.7%	89.3%	89.6%
Leased Rate < 10K SF	67.2%	68.8%	70.4%	75.8%	77.1%
Leased Rate > 10K SF	90.9%	93.2%	95.1%	92.3%	92.3%
Puerto Rico
Base Rent PSF	$19.60	$19.95	$19.72	$19.80	$19.85
Leased Rate	88.3%	89.2%	87.6%	87.2%	87.1%
Leased Rate < 10K SF	76.1%	79.2%	79.5%	79.3%	79.0%
Leased Rate > 10K SF	94.0%	94.0%	91.4%	91.0%	91.0%
Operational Statistics
% of Aggregate Property NOI - Continental U.S.	47.2%	47.5%	53.1%	50.4%	50.2%
% of Aggregate Property NOI Puerto Rico	52.8%	52.5%	46.9%	49.6%	49.8%
Puerto Rico
Revenues:
Minimum rents	15,453	16,283	16,949	16,552	16,840
Straight-line rent	(320)	(215)	(336)	720	(460)
Recoveries	5,834	6,491	5,993	5,887	6,250
Uncollectible revenue	(754)	(2,387)	(3,912)	(3,621)	(7)
Percentage rent	1,439	796	277	32	920
Ancillary income	1,617	1,846	1,627	633	1,856
Lease termination fees	0	0	0	19	0
Other property revenues	20	(15)	19	19	15
Business interruption income	0	0	0	0	0
	23,289	22,799	20,617	20,241	25,414
Expenses:
Operating and maintenance	8,787	9,613	8,726	8,339	8,725
Real estate taxes	1,132	1,153	1,227	1,184	1,231
	9,919	10,766	9,953	9,523	9,956
Net operating income	13,370	12,033	10,664	10,718	15,458

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Retail Value Inc.

Top 35 Tenants

$ and GLA in thousands
							Credit Ratings
	Tenant	Number of Units	Base Rent	% of Total	Owned GLA	% of Total	(S&P/Moody's/Fitch)
1	Walmart (1)	7	$6,013	5.4%	938	11.1%	AA/Aa2/AA
2	PetSmart	11	3,849	3.5%	203	2.4%	B/B2/NR
3	Kohl's	4	2,910	2.6%	372	4.4%	BBB-/Baa2/BBB-
4	TJX Companies (2)	7	2,903	2.6%	224	2.7%	A/A2/NR
5	Bed Bath & Beyond	7	2,754	2.5%	314	3.7%	B+/Ba3/NR
6	Best Buy	4	2,521	2.3%	168	2.0%	BBB/A3/NR
7	Burlington	5	2,424	2.2%	276	3.3%	BB/NR/NR
8	Foot Locker	12	2,271	2.0%	52	0.6%	BB+/Ba1/NR
9	Gap (3)	8	2,267	2.0%	119	1.4%	BB-/Ba2/NR
10	Claro	18	2,247	2.0%	27	0.3%	NR
11	AMC Theatres	1	2,203	2.0%	92	1.1%	CCC-/Caa3/NR
12	Cinemark	2	2,143	1.9%	136	1.6%	B/NR/B+
13	Rainbow Apparel	17	2,022	1.8%	105	1.2%	NR
14	Caribbean Cinemas	5	1,859	1.7%	211	2.5%	NR
15	Michaels	6	1,829	1.6%	141	1.7%	B/NR/NR
16	Office Depot	4	1,651	1.5%	82	1.0%	NR
17	Yum! Brands	14	1,594	1.4%	31	0.4%	BB/Ba2/NR
18	Sears (4)	3	1,520	1.4%	281	3.3%	NR
19	T-Mobile (5)	12	1,514	1.4%	25	0.3%	BB/NR/BB+
20	Walgreens	3	1,448	1.3%	41	0.5%	BBB/Baa2/BBB-
21	Ulta	5	1,407	1.3%	57	0.7%	NR
22	BJ's Wholesale Club	1	1,362	1.2%	115	1.4%	BB/NR/NR
23	Me Salve	9	1,316	1.2%	70	0.8%	NR
24	Home Depot	1	1,283	1.2%	114	1.3%	A/A2/A
25	Econo	3	1,259	1.1%	168	2.0%	NR
26	Dick's Sporting Goods	2	1,191	1.1%	90	1.1%	NR
27	Dave & Buster's	1	1,182	1.1%	40	0.5%	NR
28	AT&T	12	1,181	1.1%	21	0.2%	BBB/Baa2/BBB+
29	Burger King	8	1,017	0.9%	24	0.3%	BB/NR/NR
30	Sally Beauty	15	1,017	0.9%	29	0.3%	BB-/NR/NR
31	Chili's	6	980	0.9%	34	0.4%	B+/B1/NR
32	Journeys	7	961	0.9%	15	0.2%	NR
33	Five Below	6	868	0.8%	54	0.6%	NR
34	Lowe's	1	868	0.8%	125	1.5%	BBB+/Baa1/NR
35	Barnes & Noble	2	843	0.8%	46	0.5%	NR
	Top 35 Total	229	$64,677	58.1%	4,840	57.3%
	Total Portfolio		$111,239	100.0%	8,451	100.0%
(1) Walmart (6) / Sam's Club (1)				(4) Sears (1) / Kmart (2)
(2) T.J. Maxx (4) / Marshalls (2) / HomeGoods (1)				(5) T-Mobile (11) / Boost Mobile (1)
(3) Gap (1) / Old Navy (7)

8

Retail Value Inc.

Lease Expirations

$ and GLA in thousands
Assumes no exercise of lease options
	Greater than 10K SF						Less than 10K SF						Total
Year	# of Leases	Expiring SF	% of SF > 10K	ABR	Rent PSF	% of ABR > 10K	# of Leases	Expiring SF	% of SF < 10K	ABR	Rent PSF	% of ABR < 10K	# of Leases	Expiring SF	% of SF Total	ABR	Rent PSF	% of ABR Total
MTM	0	0	0.0%	$0	$0.00	0.0%	65	122	9.2%	$4,770	$39.10	10.9%	65	122	1.9%	$4,770	$39.10	4.7%
2021	5	206	4.1%	2,992	$14.52	5.2%	67	138	10.4%	4,346	$31.49	9.9%	72	344	5.4%	7,338	$21.33	7.3%
2022	22	685	13.6%	7,640	$11.15	13.4%	92	195	14.7%	7,172	$36.78	16.4%	114	880	13.8%	14,812	$16.83	14.7%
2023	20	864	17.1%	8,816	$10.20	15.4%	80	236	17.8%	7,484	$31.71	17.1%	100	1,100	17.3%	16,300	$14.82	16.1%
2024	24	1,039	20.6%	10,840	$10.43	19.0%	85	239	18.1%	7,433	$31.10	17.0%	109	1,278	20.0%	18,273	$14.30	18.1%
2025	32	907	18.0%	10,748	$11.85	18.8%	61	216	16.3%	6,680	$30.93	15.2%	93	1,123	17.6%	17,428	$15.52	17.3%
2026	16	544	10.8%	5,450	$10.02	9.5%	30	80	6.0%	3,131	$39.14	7.1%	46	624	9.8%	8,581	$13.75	8.5%
2027	4	65	1.3%	717	$11.03	1.3%	8	15	1.1%	860	$57.33	2.0%	12	80	1.3%	1,577	$19.71	1.6%
2028	4	175	3.5%	1,941	$11.09	3.4%	3	5	0.4%	140	$28.00	0.3%	7	180	2.8%	2,081	$11.56	2.1%
2029	2	165	3.3%	2,761	$16.73	4.8%	6	25	1.9%	549	$21.96	1.3%	8	190	3.0%	3,310	$17.42	3.3%
2030	1	40	0.8%	434	$10.85	0.8%	6	20	1.5%	517	$25.85	1.2%	7	60	0.9%	951	$15.85	0.9%
Thereafter	7	362	7.2%	4,806	$13.28	8.4%	6	32	2.4%	742	$23.19	1.7%	13	394	6.2%	5,548	$14.08	5.5%
Total	137	5,052	100.0%	$57,145	$11.31	100.0%	509	1,323	100.0%	$43,824	$33.12	100.0%	646	6,375	100.0%	$100,969	$15.84	100.0%
Assumes all lease options are exercised
	Greater than 10K SF						Less than 10K SF						Total
Year	# of Leases	Expiring SF	% of SF > 10K	ABR	Rent PSF	% of ABR > 10K	# of Leases	Expiring SF	% of SF < 10K	ABR	Rent PSF	% of ABR < 10K	# of Leases	Expiring SF	% of SF Total	ABR	Rent PSF	% of ABR Total
MTM	0	0	0.0%	$0	$0.00	0.0%	63	113	8.5%	$4,611	$40.81	10.5%	63	113	1.8%	$4,611	$40.81	4.6%
2021	1	58	1.1%	392	$6.76	0.7%	61	126	9.5%	4,033	$32.01	9.2%	62	184	2.9%	4,425	$24.05	4.4%
2022	8	156	3.1%	1,491	$9.56	2.6%	83	163	12.3%	6,066	$37.21	13.8%	91	319	5.0%	7,557	$23.69	7.5%
2023	4	105	2.1%	1,527	$14.54	2.7%	65	165	12.5%	5,692	$34.50	13.0%	69	270	4.2%	7,219	$26.74	7.1%
2024	2	63	1.2%	900	$14.29	1.6%	66	165	12.5%	5,447	$33.01	12.4%	68	228	3.6%	6,347	$27.84	6.3%
2025	7	138	2.7%	2,277	$16.50	4.0%	44	144	10.9%	4,739	$32.91	10.8%	51	282	4.4%	7,016	$24.88	6.9%
2026	2	41	0.8%	419	$10.22	0.7%	26	60	4.5%	2,456	$40.93	5.6%	28	101	1.6%	2,875	$28.47	2.8%
2027	1	24	0.5%	213	$8.88	0.4%	11	24	1.8%	1,313	$54.71	3.0%	12	48	0.8%	1,526	$31.79	1.5%
2028	2	38	0.8%	758	$19.95	1.3%	9	40	3.0%	1,115	$27.88	2.5%	11	78	1.2%	1,873	$24.01	1.9%
2029	0	0	0.0%	0	$0.00	0.0%	8	18	1.4%	663	$36.83	1.5%	8	18	0.3%	663	$36.83	0.7%
2030	8	170	3.4%	1,476	$8.68	2.6%	12	39	2.9%	1,298	$33.28	3.0%	20	209	3.3%	2,774	$13.27	2.7%
Thereafter	102	4,259	84.3%	47,692	$11.20	83.5%	61	266	20.1%	6,391	$24.03	14.6%	163	4,525	71.0%	54,083	$11.95	53.6%
Total	137	5,052	100.0%	$57,145	$11.31	100.0%	509	1,323	100.0%	$43,824	$33.12	100.0%	646	6,375	100.0%	$100,969	$15.84	100.0%
Note: Excludes ground leases

9

Retail Value Inc.

Dispositions

$ and GLA in thousands
			Owned		Allocated Loan
	Property Name	City, State	GLA	Price	Amount (1)
04/17/18	Silver Spring Square (pre spin)	Mechanicsburg, PA	343	$80,810	$65,730
06/27/18	The Walk at Highwoods Preserve (pre spin)	Tampa, FL	138	25,025	18,250
07/06/18	Tequesta Shoppes	Tequesta, FL	110	14,333	11,400
07/10/18	Lake Walden Square	Plant City, FL	245	29,000	25,170
08/01/18	East Lloyd Commons	Evansville, IN	160	23,000	16,780
08/13/18	Grandville Marketplace	Grandville, MI	224	16,700	16,500
08/29/18	Brandon Boulevard Shoppes	Valrico, FL	86	14,650	11,120
09/14/18	Gresham Station	Gresham, OR	342	64,500	54,140
10/18/18	Palm Valley Pavilions	Goodyear, AZ	233	44,800	42,170
11/13/18	I-Drive Value Center	Orlando, FL	186	26,157	23,290
11/20/18	Douglasville Pavilion	Douglasville, GA	266	35,120	28,120
12/14/18	Kyle Crossing	Kyle, TX	121	27,600	22,690
		Total 2018	2,454	$401,695	$335,360
02/08/19	Millenia Plaza	Orlando, FL	412	$56,400	$47,130
02/27/19	Homestead Pavilion (TD Bank)	Homestead, FL	4	4,091	2,490
03/01/19	West Allis Center (Chick-Fil-A)	Milwaukee, WI	5	2,211	1,680
03/04/19	Lowe's Home Improvement	Hendersonville, TN	129	16,058	10,700
03/26/19	Midway Marketplace	St. Paul, MN	324	31,210	20,400
04/05/19	Mariner Square	Spring Hill, FL	194	17,000	11,300
05/23/19	Shoppers World of Brookfield	Brookfield, WI	203	19,450	15,200
05/31/19	Homestead Pavilion	Homestead, FL	295	62,250	42,100
06/13/19	Beaver Creek Crossings	Apex, NC	321	52,750	34,300
08/07/19	Harbison Court	Columbia, SC	242	36,500	19,800
08/09/19	West Allis Center	West Allis, WI	259	18,100	11,000
12/19/19	Marketplace at Towne Centre	Mesquite, TX	180	19,150	16,500
		Total 2019	2,568	$335,170	$232,600
01/15/20	Newnan Crossing S.C. Parcel (excluding Lowe's)	Newnan, GA	92	$11,600	$5,660
02/19/20	Hamilton Commons	Mays Landing, NJ	403	60,000	50,800
02/26/20	Tucson Spectrum	Tucson, AZ	717	84,000	69,300
06/30/20	Big Oaks Crossing	Tupelo, MS	348	21,000	14,500
07/27/20	Newnan Crossing -Lowe's Parcel	Newnan, GA	130	15,550	7,140
09/24/20	Riverdale Village	Coon Rapids, MN	788	70,000	66,400
12/21/20	Peach Street Marketplace -LongHorn Steakhouse	Erie, PA	5	2,075	700
12/22/20	Plaza Palma Real	Humacao, PR	448	50,000	0
		Total 2020	2,931	$314,225	$214,500
04/09/21	Marketplace of Brown Deer	Brown Deer, WI	405	$10,250	$22,500
04/13/21	Noble Town Center	Jenkintown, PA	168	14,000	19,200
04/14/21	Plaza Vega Baja	Vega Baja, PR	185	4,500	0
04/21/21	Uptown Solon	Solon, OH	182	10,100	14,700
		Total 2021 YTD	940	$38,850	$56,400
(1) Represents portion of CMBS loan balance allocated to specific asset.  Not equivalent to amount of debt repaid when specific asset was sold.

10

Retail Value Inc.

Capital Structure

$, shares and units in thousands, except per share
	March 31, 2021	December 31, 2020	December 31, 2019
Capital Structure
Market Value Per Share	$18.71	$14.87	$36.80
Common Shares Outstanding	21,083	21,083	19,052
Common Shares Equity	$394,468	$313,508	$701,119
Redeemable Preferred Equity	$190,000	$190,000	$190,000
Bank Debt	$0	$0	$0
Mortgage Debt	$303,034	$354,202	$674,331
Less: Cash (including restricted cash)	$136,298	$172,788	$183,294
Net Debt	$166,736	$181,415	$491,037
Total Market Capitalization	$751,204	$684,923	$1,382,155
Debt Detail
	March 31, 2021	Maturity Date (1)	Contractual Interest Rate (2)
Bank Debt (3)
Unsecured Revolver ($30m)	$0	02/22	L + 130
Mortgage Debt (3)
Mortgage Debt - Class A	$0
Mortgage Debt - Class B	$0
Mortgage Debt - Class C	$257,734
Mortgage Debt - Class HRR	$45,300
Total Mortgage Debt (4) (5)	$303,034	03/24	L + 406
Debt Subtotal	$303,034
Unamortized Loan Costs, Net	($8,965)
Total Debt	$294,069
Rate Type
Fixed	$0	0.0 years	0.00%
Variable	$303,034	2.9 years	3.37%
	$303,034	2.9 years	3.37%
Mortgage Debt Yield
	March 31, 2021	December 31, 2020	December 31, 2019
Adjusted Net Cash Flow	$55,432	$90,389	$99,639
Mortgage Loan Balance (6)	$303,034	$656,943	$961,640
Debt Yield	18.29%	13.76%	10.36%
(1) Assumes borrower extension options are exercised.
(2) L = LIBOR; as of March 31, 2021 1M LIBOR .11%.
(3) Excludes loan fees and unamortized loan costs.
(4) LIBOR subject to a 3.0% cap.
(5) Mortgage loan repayment in April 2021 of $23.6 million related to the sale of Marketplace of Brown Deer; expected mortgage loan repayment       in May 2021 with aggregate net sales proceeds of $24.9 million from Noble Town Center, Plaza Veja Baja, and Uptown Solon.
(6) As defined in mortgage loan agreement. Does not reflect April transaction activity.

11

Retail Value Inc.

Property List

As of March 31, 2021

#	Center	MSA	Location	ST	Owned GLA	Total GLA	ABR PSF (1)	Leased Rate %	Anchor Tenants (1)
1	Green Ridge Square	Grand Rapids-Wyoming, MI	Grand Rapids	MI	216	407	$13.38	81.8%	Bed Bath & Beyond, Best Buy, Michaels, Target (U)
2	Maple Grove Crossing	Minneapolis-St. Paul-Bloomington, MN-WI	Maple Grove	MN	262	350	$12.54	90.9%	Barnes & Noble, Bed Bath & Beyond, Cub Foods (U), Kohl's, Michaels
3	Crossroads Center	Gulfport-Biloxi-Pascagoula, MS	Gulfport	MS	555	591	$12.08	91.8%	Academy Sports, Barnes & Noble, Belk, Burke's Outlet, Cinemark, Michaels, Ross Dress for Less, T.J. Maxx
4	Seabrook Commons	Boston-Cambridge-Newton, MA-NH	Seabrook	NH	175	393	$19.12	89.1%	Dick's Sporting Goods, Walmart (U)
5	Wrangleboro Consumer Square	Atlantic City-Hammonton, NJ	Mays Landing	NJ	840	840	$13.24	95.6%	Best Buy, BJ'S Wholesale Club, Books-A-Million, Burlington, Christmas Tree Shops, Dick's Sporting Goods, Gabes, Kohl's, Michaels, PetSmart, Staples, Target
6	Great Northern Plaza	Cleveland-Elyria, OH	North Olmsted	OH	630	669	$13.10	81.7%	Best Buy, Big Lots, Burlington, Home Depot, Jo-Ann, Marc's, PetSmart
7	Uptown Solon(3)	Cleveland-Elyria, OH	Solon	OH	182	182	$15.83	66.1%	Bed Bath & Beyond
8	Peach Street Marketplace	Erie, PA	Erie	PA	716	1,001	$10.29	89.2%	Bed Bath & Beyond, Best Buy (U), Burlington, Cinemark, Hobby Lobby, Home Depot (U), Kohl's, Lowe's, Marshalls, PetSmart, Target (U)
9	Noble Town Center(3)	Philadelphia-Camden-Wilmington, PA-NJ-DE-MD	Jenkintown	PA	168	168	$15.06	63.5%	Bed Bath & Beyond, PetSmart, Ross Dress for Less
10	Willowbrook Plaza	Houston-The Woodlands-Sugar Land, TX	Houston	TX	385	393	$15.99	79.1%	AMC Theatres, Bed Bath & Beyond, Bel Furniture, buybuy Baby
11	Marketplace of Brown Deer(3)	Milwaukee-Waukesha-West Allis, WI	Brown Deer	WI	405	405	$9.55	89.2%	Bob's Discount Furniture, Burlington, Kohl's (dark),  Michaels, OfficeMax, Pick 'n Save, T.J. Maxx (dark)
12	Plaza Isabela	Aguadilla-Isabela, PR	Isabela	PR	259	259	$14.48	93.3%	Selectos Supermarket, Walmart
13	Plaza Fajardo	Fajardo, PR	Fajardo	PR	274	274	$15.34	90.1%	Econo, Walmart
14	Plaza Walmart	Guayama, PR	Guayama	PR	164	164	$9.20	89.6%	Walmart
15	Plaza del Atlántico(2)	San Juan-Carolina-Caguas, PR	Arecibo	PR	223	223	$11.53	79.9%	Capri, Kmart (dark)
16	Plaza del Sol(2)	San Juan-Carolina-Caguas, PR	Bayamon	PR	598	710	$30.45	94.3%	Bed Bath & Beyond, Caribbean Cinemas, Dave & Buster's, H & M, Home Depot (U), Walmart
17	Plaza Río Hondo(2)	San Juan-Carolina-Caguas, PR	Bayamon	PR	556	556	$24.21	93.9%	Best Buy, Caribbean Cinemas, Kmart (dark), Marshalls Mega Store, Pueblo, T.J. Maxx
18	Plaza Escorial	San Juan-Carolina-Caguas, PR	Carolina	PR	525	636	$14.58	94.6%	Caribbean Cinemas, Home Depot (U), OfficeMax, Sam's Club, Walmart
19	Plaza Cayey	San Juan-Carolina-Caguas, PR	Cayey	PR	313	339	$8.38	93.7%	Caribbean Cinemas (U), Walmart
20	Plaza del Norte(2)	San Juan-Carolina-Caguas, PR	Hatillo	PR	621	636	$18.14	92.1%	Burlington, Caribbean Cinemas, Econo Supermarket, JCPenney, OfficeMax, Rooms To Go, Sears, T.J. Maxx
21	Señorial Plaza(2)	San Juan-Carolina-Caguas, PR	Rio Piedras	PR	202	202	$17.24	56.3%	Pueblo
22	Plaza Vega Baja(3)	San Juan-Carolina-Caguas, PR	Vega Baja	PR	185	185	$11.40	45.2%	Econo
			Total		8,451	9,581		87.4%
Note: (U) indicates unowned.  Anchors include tenants greater than 20K SF
(1)  Based upon commenced occupancy as of March 31, 2021
(2)  Indicates Mall or partial Mall asset
(3)  Asset sold subsequent to March 31, 2021

12

Retail Value Inc.

Notable Accounting and Supplemental Policies

The information contained in the Quarterly Financial Supplement does not purport to disclose all items required by the accounting principles generally accepted in the United States of America (“GAAP”) and is unaudited information.  The Company’s Quarterly Financial Supplement should be read in conjunction with the Company’s Form 10-K and Form 10-Q.

Rental Income (Revenues)

• Percentage and overage rents are recognized after the tenants’ reported sales have exceeded the applicable sales breakpoint.  

• Tenant reimbursements are recognized in the period in which the expenses are incurred.  

• Lease termination fees are recognized upon termination of a tenant’s lease when the Company has no further obligations under the lease.

Lease Modification Accounting

• Elected not to apply lease modification accounting to lease amendments in which the total amount of rent due under the lease is substantially the same and there has been no increase in the lease term.  A majority of the Company’s concession amendments within this category provide for the deferral of rental payments to a later date within the remaining lease term.  

• If abatements are granted as part of a lease amendment, the Company has elected to not treat the abatements as variable rent and instead will record the concession’s impact over the tenant’s remaining lease term on a straight-line basis. Modifications to leases that involve an increase in the lease term have been treated as a lease modification.  

• For those tenants where the Company is unable to assert that collection of amounts due over the lease term is probable, regardless if the Company has entered into a deferral agreement to extend the payment terms, the Company has categorized these tenants on the cash basis of accounting.  As a result, no rental income is recognized from such tenants once they have been placed on the cash basis of accounting until payments are received and all existing accounts receivable relating to these tenants have been reserved in full, including straight-line rental income.  The Company will remove the cash basis designation and resume recording rental income from such tenants during the period earned at such time it believes collection from the tenants is probable based upon a demonstrated payment history or recapitalization event.

Deferred Financing Costs

• Costs incurred in obtaining term financing are included as a reduction of the related debt liability and costs incurred related to the revolving credit facilities are included in other assets on the consolidated balance sheets.  All costs are amortized on a straight-line basis over the term of the related debt agreement; such amortization is reflected as interest expense in the consolidated income statements.

Real Estate

• Real estate assets are stated at cost less accumulated depreciation, which, in the opinion of management, is not in excess of the individual property's estimated undiscounted future cash flows, including estimated proceeds from disposition.

• Construction in progress includes expansions and re-tenanting.  

• Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets as follows:

Buildings20 to 31.5 years

Building Improvements3 to 20 years

Furniture/Fixtures/ Shorter of economic life or lease terms

Tenant Improvements

13

Retail Value Inc.

Notable Accounting and Supplemental Policies

Capitalization

• Expenditures for maintenance and repairs are charged to operations as incurred.  Renovations and expenditures that improve or extend the life of the asset are capitalized.

• The Company capitalizes interest on funds used for the construction or expansion of shopping centers.  Capitalization of interest ceases when construction activities are completed and the property is available for occupancy by tenants.

• Interest expense incurred during construction is capitalized and depreciated over the building life.

14

Retail Value Inc.

Non-GAAP Measures

FFO and Operating FFO

The Company believes that Funds from Operations (“FFO”) and Operating FFO, both non-GAAP financial measures, provide additional and useful means to assess the financial performance of REITs.  FFO and Operating FFO are frequently used by the real estate industry, as well as securities analysts, investors and other interested parties, to evaluate the performance of REITs. The Company also believes that FFO and Operating FFO more appropriately measure the core operations of the Company and provide benchmarks to its peer group

FFO excludes GAAP historical cost depreciation and amortization of real estate and real estate investments, which assume that the value of real estate assets diminishes ratably over time.  Historically, however, real estate values have risen or fallen with market conditions, and many companies use different depreciable lives and methods.  Because FFO excludes depreciation and amortization unique to real estate and gains and losses from depreciable property dispositions, it can provide a performance measure that, when compared year over year, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, interest costs and acquisition, disposition and development activities.  This provides a perspective of the Company’s financial performance not immediately apparent from net income determined in accordance with GAAP.

FFO is generally defined and calculated by the Company as net income (loss) (computed in accordance with GAAP), adjusted to exclude (i) gains and losses from disposition of real estate property and related investments, which are presented net of taxes, if any, (ii) impairment charges on real estate property and related investments and (iii) certain non-cash items.  These non-cash items principally include real property depreciation and amortization of intangibles.  The Company’s calculation of FFO is consistent with the definition of FFO provided by NAREIT.  

The Company believes that certain charges and income recorded in its operating results are not comparable or reflective of its core operating performance.  Operating FFO is useful to investors as the Company removes non-comparable charges, income and gains to analyze the results of its operations and assess performance of the core operating real estate portfolio.  As a result, the Company also computes Operating FFO and discusses it with the users of its financial statements, in addition to other measures such as net income (loss) determined in accordance with GAAP and FFO.  Operating FFO is generally defined and calculated by the Company as FFO excluding certain charges and income that management believes are not comparable and indicative of the results of the Company’s operating real estate portfolio.  Such adjustments include gains/losses on the early extinguishment of debt and transaction costs.  The disclosure of these adjustments is regularly requested by users of the Company’s financial statements.

The adjustment for these charges and income may not be comparable to how other REITs or real estate companies calculate their results of operations, and the Company’s calculation of Operating FFO differs from NAREIT’s definition of FFO.  Additionally, the Company provides no assurances that these charges and income are non-recurring.  These charges and income could be reasonably expected to recur in future results of operations.

These measures of performance are used by the Company for several business purposes and by other REITs.  The Company uses FFO and/or Operating FFO in part (i) as a disclosure to improve the understanding of the Company’s operating results among the investing public, (ii) as a measure of a real estate asset’s performance and (iii) to compare the Company’s performance to that of other publicly traded shopping center REITs.  For the reasons described above, management believes that FFO and Operating FFO provide the Company and investors with an important indicator of the Company’s operating performance.  They provide recognized measures of performance other than GAAP net income, which may include non-cash items (often significant).  Other real estate companies may calculate FFO and Operating FFO in a different manner.

15

Retail Value Inc.

Non-GAAP Measures

Management recognizes the limitations of FFO and Operating FFO when compared to GAAP’s net income.  FFO and Operating FFO do not represent amounts available for dividends, capital replacement or expansion, debt service obligations or other commitments and uncertainties.  Management does not use FFO or Operating FFO as an indicator of the Company’s cash obligations and funding requirements for future commitments, acquisitions or development activities.  Neither FFO nor Operating FFO represents cash generated from operating activities in accordance with GAAP, and neither is necessarily indicative of cash available to fund cash needs.  Neither FFO nor Operating FFO should be considered an alternative to net income (computed in accordance with GAAP) or as an alternative to cash flow as a measure of liquidity.  FFO and Operating FFO are simply used as additional indicators of the Company’s operating performance.  The Company believes that to further understand its performance, FFO and Operating FFO should be compared with the Company’s reported net income (loss) and considered in addition to cash flows determined in accordance with GAAP, as presented in its condensed consolidated financial statements. Reconciliations of these measures to their most directly comparable GAAP measure of net income (loss) have been provided herein.

Net Operating Income (“NOI”)

The Company uses NOI, which is a non-GAAP financial measure, as a supplemental performance measure. NOI is calculated as property revenues less property-related expenses. The Company believes NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and, when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis. Reconciliation of 2021 projected NOI to the most directly comparable GAAP financial measure is not provided because the Company is unable to provide such reconciliation without unreasonable effort.

16

Retail Value Inc. 3300 Enterprise Pkwy. Beachwood, OH 44122 P.216.755.5500 F. 216.755.1500 www.retailvalueinc.com

XML

Document and Entity Information	May 04, 2021
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Entity Central Index Key	0001735184
Document Period End Date	May 04, 2021
Entity Registrant Name	Retail Value Inc.
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity File Number	1-38517
Entity Incorporation State Country Code	OH
Entity Tax Identification Number	82-4182996
Entity Address, Address Line One	3300 Enterprise Parkway
Entity Address, City or Town	Beachwood
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44122
City Area Code	(216)
Local Phone Number	755-5500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Security 12b Title	Common Shares, Par Value $0.10 Per Share
Trading Symbol	RVI
Security Exchange Name	NYSE