First Quarter Highlights:
Financial
-- Diluted FFO per share of $0.65
-- 8.3% increase on a per share basis
-- 8.1% increase in Diluted FFO
-- $0.42 per share regular quarterly dividend declared on March 8, 2000
Operations
-- Construction of Old Navy begins at Cox Creek (Florence, Alabama)
-- Lease signed with Best Buy at Jackson Crossing (Jackson, Michigan)
-- Wal-Mart redevelopment planned at Roseville Plaza (Roseville, Michigan)
-- Newly named anchors COSTCO and JoAnn etc join Auburn Mile (Auburn,
Michigan)
-- Non-anchor tenant renewals 13.0% above previous rental rates
SOUTHFIELD, Mich., April 20 /PRNewswire/ -- Ramco-Gershenson Properties
Trust (NYSE: RPT) announced today results for the first quarter ended
March 31, 2000.
For the three months ended March 31, 2000, diluted Funds from Operations
(FFO) increased 8.1 percent, or approximately $593,000, to $7,886,000,
compared with $7,293,000 for the three months ended March 31, 1999. On a per
share basis, the increase was 8.3 percent, or $0.05, to $0.65 compared with
$0.60 in 1999. Total revenues increased 0.3 percent or $55,000, to a total of
$21,828,000, compared with $21,773,000 in 1999.
"We are pleased with our financial results for the quarter," said Dennis
Gershenson, president and chief executive officer of Ramco-Gershenson
Properties Trust. "The Company's performance is attributable to the impact of
our repositioning of core assets, our development efforts as well as our
leasing activities. These initiatives coupled with our plans for joint
venture acquisitions should position us for growth in FFO well into 2001."
Asset Management
The Company continues to focus on generating internal growth through the
redevelopment of core assets. Five redevelopments are currently in progress,
including:
-- Cox Creek, Florence, Alabama -- RPT has completed the retenanting of a
vacated Wal-Mart store at this shopping center with the execution of a
lease for the Gap's Old Navy store, which joins Goody's Family Clothing
and Toys R Us as anchors for the center.
-- West Oaks II, Novi, Michigan -- Kohl's department store is expanding
their facility by 20,000 square feet to 90,000 square feet, to
accommodate a two-story addition.
-- Madison Center, Madison Heights, Michigan-Kmart is presently under
construction with an expansion of its existing 83,000 square foot store
to a 143,000 square foot Super Kmart.
-- Roseville Plaza, Roseville, Michigan-An expansion and redevelopment of
this center is in progress. A lease for a 135,000 square foot Wal-Mart
store has been executed.
-- Jackson Crossing, Jackson, Michigan-A lease has been signed with Best
Buy in 30,000 square feet for an expansion of this 638,000 square foot
center.
The Company expects to announce at least three additional redevelopment
projects for 2000 construction starts as early as the second quarter.
Development
Development highlights include the ongoing construction of the Company's
650,000 square foot Auburn Mile shopping center located in Auburn Hills,
Michigan. Anchor tenants Meijer, Target and JoAnn etc are planning summer
2000 openings. Additional anchors will include a COSTCO Warehouse Club and a
Best Buy store. The Company is currently in negotiation with a number of
destination oriented retailers. The project is expected to be fully leased by
fall 2000.
The Company is pursuing several development opportunities and plans to
commence one additional project during the second half of the year.
Leasing
In the first quarter, the Company opened eight new non-anchor stores at
rental rates 37.4% above the portfolio average and renewed 60 non-anchor
leases at an average increase of 13% over their prior base rental rate.
Acquisitions/Dispositions
Acquisition of shopping centers remains a valuable component of the
Company's business plan. Based on the joint venture agreement with an
affiliate of Investcorp International, which was signed in 1999, RPT
anticipates that the joint venture will purchase a number of centers with an
aggregate value of $95 million throughout the balance of year.
In addition, the Company will continue to pursue the sale of non-core
assets and shopping centers considered fully-valued in order to re-deploy the
capital in growth opportunities which should result in significantly higher
returns.
Dividend
The Company paid a cash dividend on its common stock of $0.42 per share on
April 18, 2000 to shareholders of record on March 31, 2000.
Ramco-Gershenson Properties Trust has a portfolio of 54 shopping centers,
with approximately 10.8 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.
FINANCIAL RESULTS
Ramco-Gershenson Properties Trust
Operating Results
(In thousands, except per share amounts)
(Unaudited)
Three Three
Months Months
Ended Ended
3/31/00 3/31/99
REVENUES
Minimum rents $15,037 $15,114
Percentage rents 884 625
Recoveries from tenants 5,373 5,808
Interest and other income 534 226
Total Revenues 21,828 21,773
EXPENSES
Real estate taxes 1,888 1,978
Recoverable operating expenses 3,636 3,890
Depreciation and amortization 3,495 3,291
Other operating 466 567
General and administrative 1,339 1,473
Interest expense 6,426 6,511
Total Expenses 17,250 17,710
Operating income 4,578 4,063
Earnings (Loss) from unconsolidated entities 6 (68)
Income before minority interest 4,584 3,995
Minority interest 1,360 1,186
Net income $ 3,224 $ 2,809
Net income available to common shareholders $ 2,389 $ 1,969
Basic earnings per share $0.33 $0.27
Diluted earnings per share $0.33 $0.27
Weighted average shares outstanding
Basic 7,218 7,218
Diluted 7,218 7,218
Funds from Operations(a)
Basic
Funds from Operations $ 7,051 $ 6,453
FFO weighted average number
of shares outstanding(b) 10,163 10,170
Funds from Operations per share $0.69 $0.63
Diluted
Funds from Operations $ 7,886 $ 7,293
FFO weighted average number
of shares outstanding(c) 12,163 12,171
Funds from Operations per share $0.65 $0.60
Ramco-Gershenson Properties Trust
Consolidated Balance Sheets
(In thousands)
March 31, Dec. 31,
2000 1999
ASSETS (unaudited)
Investment in real estate, net $ 504,186 $ 507,463
Cash and cash equivalents 3,153 5,744
Accounts receivable, net 12,975 12,791
Equity investments in and advances
to unconsolidated entities 7,709 7,642
Other assets, net 18,938 16,866
Total Assets $ 546,961 $ 550,506
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgages and notes payable $ 336,995 $ 337,552
Distributions payable 5,103 5,127
Accounts payable and accrued expenses 14,830 15,983
Total Liabilities 356,928 358,662
Minority Interest 48,519 48,396
Commitments and Contingencies --- ---
Shareholders' Equity 141,514 143,448
Total Liabilities and Shareholders' Equity $ 546,961 $ 550,506
(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 generally
accepted accounting principles, 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. This clarification of the definition of FFO did not
change amount previously reported for 1999.
FFO does not represent cash generated from operating activities in
accordance with generally accepted accounting principles 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 generally accepted accounting
principles, 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.
SOURCE Ramco-Gershenson Properties Trust
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CONTACT:
Dennis Gershenson, President & CEO, or
Richard Smith, CFO, 248-350-9900, fax, 248-350-9925, both of
Ramco-Gershenson Properties Trust
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