Second Quarter Highlights:
Financial Information
-- Diluted FFO per share of $0.63
-- 3.3% increase in diluted FFO, on a per share basis
-- 3.1% increase in total diluted FFO
-- $0.42 per share regular quarterly dividend paid on July 17, 2001
Operating Statistics
-- Wal-Mart opens at Roseville Plaza, completing the redevelopment of the
center
-- Designer Shoe Warehouse opens in 25,000 square feet at Clinton Valley
shopping center
-- Michael's, Linen's N' Things, Payless Shoes and Shoe Carnival open at
Crossroads Centre
SOUTHFIELD, Mich., July 19 /PRNewswire/ -- Ramco-Gershenson Properties
Trust (NYSE: RPT) announced today results for the second quarter and six
months ended June 30, 2001.
For the three months ended June 30, 2001, diluted Funds from Operations
(FFO) increased 3.1 percent, or approximately $231,000, to $7,646,000,
compared with $7,415,000 for the three months ended June 30, 2000. On a per
share basis, the increase was 3.3 percent, or $0.02, to $0.63 compared with
$0.61 in 2000. Total revenues decreased 11.3 percent or $2,769,000, to a
total of $21,809,000, compared with $24,578,000 in 2000. The decrease in
revenues was primarily attributable to a non-recurring gain on the sale of
land that occurred in the second quarter of last year.
For the six months ended June 30, 2001, diluted FFO increased 2.0 percent,
or approximately $303,000, to $15,604,000, compared with $15,301,000 for the
six months ended June 30, 2000. On a per share basis, the increase was
2.4 percent, or $0.03, to $1.29 compared with $1.26 in 2000. Total revenues
increased 8.5 percent or $3,953,000, to a total of $50,359,000, compared with
$46,406,000 in 2000.
The increase in FFO for the quarter ended June 30, 2001, was the result of
the following:
-- Income generated from core assets and operations including
unconsolidated subsidiaries.
-- Management, leasing and development fee income.
-- Gain on sale of out parcel.
The increases were partially offset by:
-- Lost revenues from the first quarter sale of White Lake MarketPlace and
Athens Town Center.
"The Company is pleased to have met its projected financial results for
the quarter and first half of the year", said Dennis Gershenson, president and
chief executive officer of Ramco-Gershenson Properties Trust. "We are well on
our way to achieving the Company's 2001 business goals, which include growth
in our three profit centers; asset management, development and acquisitions.
We will also continue to raise capital through the end of the year with the
sale of selected assets."
Asset Management
RPT has completed the redevelopment of its Roseville Plaza shopping center
in Metropolitan Detroit. A portion of the center was demolished to
accommodate a new 136,000 square foot Wal-Mart store, the relocation of CVS
Drugs to a new updated and expanded unit and a complete renovation of the
center.
Additionally, Designer Shoe Warehouse opened in 25,000 square feet at
RPT's Clinton Valley shopping center, also in Metropolitan Detroit. Designer
Shoe Warehouse joins Office Depot as anchors for the center.
"Throughout the remainder of the year we will continue to devote a
significant portion of our energies to redevelopment opportunities that exist
within our core portfolio", said Dennis Gershenson. "We expect to announce a
number of major redevelopment projects by year-end."
Development
Development of the Company's 650,000 square foot Crossroads Centre is
nearing completion with the opening of Michael's Crafts, Linens 'N Things,
Payless Shoes and Shoe Carnival this quarter. They join Target and Home Depot
who opened in the first quarter of 2001. Fashion Bug, Bath & Body Works, Pet
Supplies Plus, Giant Eagle and Pier I Imports are scheduled to open later this
summer.
Leasing
In the second quarter, the Company opened 7 new non-anchor stores, at an
average base rent of $10.43 per square foot and renewed 1 non-anchor lease at
a 7.0% increase over prior rental rates. Approximately 92.6% of the gross
leasable area for the Company's portfolio was leased at quarter-end.
Corporate Reorganization
In May, the Company entered into new employment agreements with three of
its executives: Joel Gershenson, Bruce Gershenson and Michael Ward. Under the
terms of the new agreements, the executives will relinquish their day-to-day
responsibilities with the Company. They will participate in an Advisory
Committee and be available to undertake specific tasks where their talents,
expertise and relationships will be invaluable. The newly formed committee
will focus on strategic planning, annual goals, major project reviews and
monitoring of the Company's business plan.
Share Repurchase Program
Since the inception of the Company's common stock repurchase program
initiated in March of 2000, the Company purchased 117,900 common shares at an
average price of $14.10 per share. Common shares outstanding amounted to
7,104,926 at quarter end.
Dividend
The Company paid a cash dividend on its common stock of $0.42 per share on
July 17, 2001 to shareholders of record on June 30, 2001.
Conference Call
RPT will host a live broadcast of its 2nd Quarter conference call on
July 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) 817-7175 (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 5344895 (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 11.5 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 Six Six
Months Months Months Months
Ended Ended Ended Ended
6/30/01 6/30/00 6/30/01 6/30/00
REVENUES
Minimum rents $15,069 $14,710 $30,420 $29,747
Percentage rents 173 504 1,094 1,388
Recoveries from
tenants 5,435 5,272 11,114 10,645
Fees and management
income 438 - 1,096 -
Gain on sale of
real estate 343 3,420 5,349 3,420
Interest and other
income 351 672 1,286 1,206
Total Revenues 21,809 24,578 50,359 46,406
EXPENSES
Real estate taxes 2,211 1,895 4,330 3,783
Recoverable operating
expenses 3,490 3,541 7,239 7,177
Depreciation and
amortization 4,096 3,735 8,074 7,230
Other operating 424 277 758 669
General and
administrative 1,751 1,491 4,246 2,904
Interest expense 6,436 6,701 13,393 13,127
Total Expenses 18,408 17,640 38,040 34,890
Operating income 3,401 6,938 12,319 11,516
Earnings from
unconsolidated
entities 339 78 414 84
Income before minority
interest 3,740 7,016 12,733 11,600
Minority interest 1,106 2,044 3,763 3,404
Net income before
cumulative effect of
change in accounting
principle 2,634 4,972 8,970 8,196
Cumulative effect of
change in accounting
principle(A) - - - (1,264)
Net income $ 2,634 $ 4,972 $ 8,970 $ 6,932
Net income available
to common
shareholders $ 1,796 $ 4,137 $ 7,304 $ 5,262
Basic and diluted
earnings per share
before cumulative
effect of change in
accounting principle:
Basic $0.25 $0.57 $1.03 $0.91
Diluted $0.25 $0.54 $0.98 $0.89
Basic and diluted
earnings per share
after cumulative
effect of change in
accounting principle:
Basic $0.25 $0.57 $1.03 $0.73
Diluted $0.25 $0.54 $0.98 $0.73
Weighted average shares
outstanding:
Basic 7,102 7,195 7,111 7,207
Diluted 7,120 9,195 9,122 7,207
Ramco-Gershenson Properties Trust
Calculation of Funds from Operations(B)
(In thousands, except per share data)
(Unaudited)
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
6/30/01 6/30/00 6/30/01 6/30/00
Net Income $2,634 $4,972 $8,970 $6,932
Add:
Depreciation and
amortization expense 4,101 3,819 8,083 7,370
Cumulative effect of
change in accounting
principle - - - 1,264
Minority Interest in
partnership 1,106 2,044 3,763 3,404
Less:
Gain on sale of
real estate (195) (3,420) (5,212) (3,669)
Funds from Operations
-diluted 7,646 7,415 15,604 15,301
Less:
Preferred share
dividends 838 835 1,666 1,670
Funds from Operations
-basic $6,808 $6,580 $13,938 $13,631
Funds from Operations
per share:
Diluted $0.63 $0.61 $1.29 $1.26
Basic $0.68 $0.65 $1.39 $1.34
Basic weighted average
shares outstanding(C) 10,047 10,140 10,056 10,152
Convertible Preferred
shares and options 2,018 2,000 2,011 2,000
Diluted weighted average
shares outstanding(D) 12,065 12,140 12,067 12,152
Ramco-Gershenson Properties Trust
Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2001 2000
ASSETS (unaudited)
Investment in real estate, net $ 488,920 $ 509,629
Cash and cash equivalents 3,876 2,939
Accounts receivable, net 16,412 15,954
Equity investments in and advances to
unconsolidated entities 5,330 9,337
Other assets, net 24,830 22,425
Total Assets $ 539,368 $ 560,284
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgages and notes payable $ 333,680 $ 354,008
Distributions payable 5,059 5,076
Accounts payable and accrued expenses 13,587 15,355
Total Liabilities 352,326 374,439
Minority Interest 48,590 47,301
Commitments and Contingencies --- ---
Shareholders' Equity 138,452 138,544
Total Liabilities and Shareholders' Equity $ 539,368 $ 560,284
(A) In December 1999, the Securities and Exchange Commission issued Staff
Accounting Bulletin No. 101, "Revenue Recognition in Financial
Statements" (SAB 101), which among other topics, requires that real
estate companies should not recognize contingent percentage rents
until the specified target that triggers this type of income is
achieved. The Company had previously recorded percentage rents
throughout the year based on rent estimated to be due from the
tenant. The Company has elected to adopt the provisions of SAB 101
as of April 1, 2000. The cumulative effect of such adoption is a
reduction in percentage rents retroactive to January 1, 2000, of
approximately $1,264,000.
(B) 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.
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.
(C) Represents the weighted average total shares outstanding, assuming
the redemption of all operating partnership units for common shares.
(D) 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 our
Website @ 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, 248-350-9900, 248-350-9925, both of
Ramco-Gershenson Properties Trust
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