First Quarter Highlights:
Financial Information
* Diluted FFO per share of $0.66
* 1.5% increase on a per share basis
* $0.42 per share regular quarterly dividend declared on March 7, 2001
Operating Results
* White Lake MarketPlace and Athens Towne Center sold
* Home Depot and Target open, Pier 1 Imports lease executed at Crossroads
Centre
* Designer Shoe Warehouse lease signed at Clinton Valley shopping center
* Mars Music commences rent payment at Spring Meadows Place
* 39 non-anchor tenant renewals, 5.2% above previous rental rates
SOUTHFIELD, Mich., April 19 /PRNewswire/ -- Ramco-Gershenson Properties
Trust (NYSE: RPT) announced today results for the first quarter ended
March 31, 2001.
For the three months ended March 31, 2001, diluted Funds from Operations
(FFO) increased approximately $72,000, to $7,958,000, compared with $7,886,000
for the three months ended March 31, 2000. On a per share basis, the increase
was 1.5 percent, or $0.01, to $0.66 compared with $0.65 in 2000. Total
revenues increased 30.8% percent or $6,722,000, to a total of $28,550,000,
compared with $21,828,000 in 2000.
The increase in FFO for the quarter ended March 31, 2001, was the result
of the following:
* Management, leasing and development fee income generated from the
Crossroads project.
* Core assets and operations including unconsolidated subsidiaries.
The increases were offset by:
* The sale of White Lake MarketPlace and Athens Town Center.
* Interest expense associated with development projects.
"We are pleased with our numbers and the progress we made on our business
plan for the first quarter," said Dennis Gershenson, president and chief
executive officer of Ramco-Gershenson Properties Trust. "We signed a new
anchor tenant at our Clinton Valley shopping center and filled a substantial
vacancy at Spring Meadows Place. Our Crossroads Development is proceeding
ahead of schedule and we recently added Pier 1 to the roster of tenants slated
for openings later this year. In addition, we sold two shopping centers
utilizing the proceeds to reduce our debt."
Asset Management
The Company continues to focus a substantial portion of its business
resources on the redevelopment of core assets. At quarter end, four
redevelopments are in progress.
The Company is expanding its Roseville Plaza shopping center in Roseville,
Michigan to include a 135,000 square foot Wal-Mart. In addition, RPT is
redeveloping both its Sunshine Plaza and Lantana shopping centers in Florida
to include expanded and updated Publix Supermarkets.
During the quarter, the Company also entered into a lease with Designer
Shoe Warehouse as part of the redevelopment of its Clinton Valley shopping
center in Sterling Heights, Michigan. Designer Shoe Warehouse will join
Office Depot as an anchor for the center filling a portion of the space
previously occupied by Montgomery Ward.
In addition, Mars Music in 18,000 square feet has been added to RPT's
475,000 square foot Spring Meadows Place shopping center located in the
Toledo, Ohio market. Mars Music replaces Superpetz at this center.
Development
Development highlights include the ongoing construction of the Company's
650,000 square foot Crossroads Centre shopping center located in Rossford,
Ohio, a suburb of Toledo. Home Depot and Target both opened during the first
quarter. Giant Eagle Supermarket, Linens 'N Things and Michael's Crafts are
scheduled to open in the summer of 2001. A lease was executed with Pier 1
Imports this quarter and rounds out a roster of tenants that also includes Pet
Supplies Plus, Fashion Bug, Bath & Body Works and Shoe Carnival. RPT holds a
10% interest in the development as part of an off balance sheet joint venture.
The Company is currently pursuing several development opportunities and
expects to announce an additional project during the second half of the year.
Leasing
In the first quarter, the Company opened 19 new non-anchor stores, at an
average base rent of $9.48 per square foot and renewed 39 non-anchor leases at
an average increase of 5.2% over prior rental rates.
Acquisitions/Dispositions
The Company did not purchase any shopping centers during the quarter,
however, acquisition of shopping centers remains a valuable component of RPT's
business plan. The Company is actively pursuing acquisitions to be funded by
off balance sheet joint ventures. Acquisition joint ventures will maximize
the return on investment while minimizing the Company's equity requirements.
As previously reported, RPT sold White Lake MarketPlace, a 350,000 square
foot community shopping center located in White Lake, Michigan in January
2001. In addition, the Company sold Athens Town Center, a 210,000 square foot
community center located in Athens, Alabama this quarter. Total proceeds from
the two sales amounted to approximately $29 million and were used to pay down
the Company's debt.
Taxable REIT subsidiary
Effective January 1, 2001, Ramco-Gershenson Properties Trust elected to
convert its management company, Ramco-Gershenson, Inc., to a taxable REIT
subsidiary. The subsidiary is no longer accounted for as an unconsolidated
entity and accordingly it's revenues and expenses have been included in the
operating income of the Consolidated Statement of Income for the quarter ended
March 31, 2001 and it's assets and liabilities are included in the
Consolidated Balance Sheet at March 31, 2001. The accounting change had no
impact on FFO.
Share Repurchase
During the quarter the Company purchased 24,200 common shares at an
average price of $14.37 per share. Common shares outstanding were 7,104,693
at quarter end.
Dividend
The Company paid a cash dividend on its common stock of $0.42 per share on
April 17, 2001 to shareholders of record on March 31, 2001.
RPT will host a live broadcast of its 1st Quarter conference call on April
19, 2001 at 10:30 a.m. eastern time. The live broadcast will be available
online at http://www.ramcogershenson.com and http://www.streetevents.com and also by
telephone at 877-282-0743 (no passcode needed). A replay will be available
shortly after the call on the aforementioned Websites (for ninety days) or by
telephone at 888-266-2086, passcode 5103581 (for one week).
Supplemental financial information is available via e-mail by sending
requests to dgarcia@ramco-gershenson.com and is also available at the investor
section of our Web page.
Ramco-Gershenson Properties Trust has a portfolio of 55 shopping centers,
with approximately 11.4 million square feet of gross leasable area, located in
Michigan, Ohio, Wisconsin, New Jersey, Maryland, Virginia, North Carolina,
South Carolina, Tennessee, Georgia, Alabama and Florida. Headquartered in
Southfield, Michigan, the Trust is a fully integrated, self-administered,
publicly-traded real estate investment trust (REIT) which owns, develops,
acquires, manages and leases community shopping centers, regional malls and
single tenant retail properties, nationally.
This press release contains forward-looking statements with respect to the
operation of certain of the Trust's properties. Management of Ramco-
Gershenson believes the expectations reflected in the forward-looking
statements made in this document are based on reasonable assumptions. Certain
factors could occur that might cause actual results to vary. These include
general economic conditions, the strength of key industries in the cities in
which the Trust's properties are located, the performance of the Trust's
tenants at the Trust's properties and elsewhere, and other factors discussed
in the Trust's reports filed with the Securities and Exchange Commission.
Ramco-Gershenson Properties Trust
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
Three Three
Months Months
Ended Ended
3/31/01 3/31/00
REVENUES
Minimum rents $15,351 $15,037
Percentage rents 921 884
Recoveries from tenants 5,679 5,373
Fees and management income 658 -
Gain on sale of real estate 5,006 -
Interest and other income 935 534
Total Revenues 28,550 21,828
EXPENSES
Real estate taxes 2,119 1,888
Recoverable operating expenses 3,749 3,636
Depreciation and amortization 3,978 3,495
Other operating 334 466
General and administrative 2,495 1,339
Interest expense 6,957 6,426
Total Expenses 19,632 17,250
Operating income 8,918 4,578
Earnings from unconsolidated entities 75 6
Income before minority interest 8,993 4,584
Minority interest 2,657 1,360
Net income $6,336 $3,224
Net income available to common shareholders $5,508 $2,389
Basic earnings per share $0.77 $0.33
Diluted earnings per share $0.69 $0.33
Weighted average shares outstanding
Basic 7,121 7,218
Diluted 9,121 7,218
Ramco-Gershenson Properties Trust
Calculation of Funds from Operations (a)
(In thousands, except per share data)
(Unaudited)
Three Three
Months Months
Ended Ended
3/31/01 3/31/00
Net Income $6,336 $3,224
Add:
Depreciation and amortization expense 3,982 3,551
Minority Interest in partnership 2,657 1,360
Less:
Gain on sale of real estate 5,017 249
Funds from Operations-diluted 7,958 7,886
Less:
Preferred share dividends 828 835
Funds from Operations-basic $7,130 $7,051
Funds from Operations per share:
Diluted $0.66 $ 0.65
Basic $0.71 $ 0.69
Basic weighted average shares outstanding (b) 10,066 10,163
Convertible Preferred shares and options 2,003 2,000
Diluted weighted average shares outstanding (c) 12,069 12,163
Ramco-Gershenson Properties Trust
Consolidated Balance Sheets
(In thousands)
March 31, 2001 Dec. 31, 2000
ASSETS (unaudited)
Investment in real estate, net $488,811 $509,629
Cash and cash equivalents 3,918 2,939
Accounts receivable, net 15,750 15,954
Equity investments in and
advances to unconsolidated entities 5,086 9,337
Other assets, net 25,132 22,425
Total Assets $538,697 $560,284
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgages and notes payable $331,454 $354,008
Distributions payable 5,049 5,076
Accounts payable and accrued expenses 13,964 15,355
Total Liabilities 350,467 374,439
Minority Interest 48,721 47,301
Commitments and Contingencies --- ---
Shareholders' Equity 139,509 138,544
Total Liabilities and Shareholders' Equity $538,697 $560,284
(a) Management generally considers Funds from Operations ("FFO") to be one
measure of financial performance of an Equity REIT. The Trust has adopted
the most recent National Association of Real Estate Investment Trusts
("NAREIT") definition of FFO, which was amended effective January 1, 2000.
Under the NAREIT definition, FFO represents income before minority
interest, excluding "extraordinary" items, as defined under accounting
principles generally accepted in the United States of America, gains on
sale of property, plus real estate related depreciation and amortization
(excluding amortization of financing costs), and after adjustment for
unconsolidated partnerships and joint ventures.
FFO does not represent cash generated from operating activities in
accordance with accounting principles generally accepted in the United
States of America and should not be considered an alternative to net
income as an indication of the Trust's performance or to cash flows from
operating activities as a measure of liquidity or the ability to pay
distributions. Furthermore, while net income and cash generated from
operating, investing and financing activities, determined in accordance
with accounting principles generally accepted in the United State of
America, consider capital expenditures which have been and will be
incurred in the future, the calculation of FFO does not.
(b) Represents the weighted average total shares outstanding, assuming the
redemption of all operating partnership units for common shares.
(c) Represents the weighted average total shares outstanding, assuming the
redemption of all operating partnership units for common shares, the
conversion of convertible preferred shares to common shares, and dilutive
stock options.
For more information on Ramco-Gershenson Properties Trust via facsimile at
no cost, simply dial 1-800-PRO-INFO and enter the company code RPT or visit
the Company's Web site at http://www.ramcogershenson.com .
SOURCE Ramco-Gershenson Properties Trust
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Related links:
http://www.ramcogershenson.com
CONTACT:
Dennis Gershenson, President & CEO, or
Richard Smith, CFO, of Ramco-Gershenson, 248-350-9900, or fax,
248-350-9925
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