EXHIBIT 99.1
Ramco-Gershenson Properties Trust
Reports Results for First Quarter 2003; Diluted FFO Per Share of
$0.55, Income from Continuing Operations Per Share of $0.21
SOUTHFIELD, Mich.--(BUSINESS WIRE)--April 23, 2003--
Ramco-Gershenson Properties Trust (NYSE:RPT)
First Quarter Highlights:
Financial Information
-- Diluted FFO per share of $0.55
-- Diluted Income from continuing operations per share of $0.21
-- Diluted FFO of $8,447,000, increase of 13.3%
-- Total Revenues of $26,495,000, increase of 21.9%
Operating Statistics
-- Completed the first phase of the redevelopment of Troy Towne
Center in Troy, Ohio
-- Acquired Kroger Supermarket anchored Livonia Plaza in Livonia,
MI for $13 million
-- Opened 13 new non-anchor stores at rental rates 45.0% above
portfolio average
-- Renewed 45 non-anchor leases at rental rates 5.5% above prior rents paid
-- Debt to Market Capitalization Ratio of 54.9%, compared to
62.5% at March 31, 2002
-- $0.42 per share regular quarterly dividend paid April 15, 2003
Ramco-Gershenson Properties Trust (NYSE:RPT) announced today results for the
first quarter ended March 31, 2003.
For the three months ended March 31, 2003, diluted Funds from Operations
(FFO) were $8,447,000 compared with $7,454,000 for the three months ended March
31, 2002. As a result of the dilutive effect of the Company's common share
offering completed in April of 2002, on a per share basis FFO was $0.55 compared
with $0.62 in 2002. Total revenues increased 21.9 percent or $4,756,000, to a
total of $26,495,000, compared with $21,739,000 in 2002. Income from continuing
operations for the three months ended March 31, 2003, was $3,151,000 compared
with $2,286,000 in 2002. On a diluted per share basis, income from continuing
operations increased from $0.20 in 2002 to $0.21 in 2003.
"We are pleased with our first quarter financial results, which are in line
with expectations," said Dennis Gershenson, President and Chief Executive
officer. "We have been very busy during the quarter
4
pursuing opportunities in all three of our profit centers; acquisitions, asset
management and development. We have been especially active in the redevelopment
of core assets. Over the next several months we will be announcing a number of
shopping center repositionings and expansions similar in nature to the
transformation of our Troy Towne Center. Our business plan for the year is on
track. The quarter's leasing statistics demonstrate the strength of our shopping
centers' locations and we are making progress on improving our debt to market
capitalization."
Asset Management
The Company is pleased to announce that the first phase expansion and
redevelopment of Troy Towne Center in Troy, Ohio, a northern suburb of Dayton,
Ohio is complete. The redevelopment of the center includes the addition of an
86,584 square foot Kohl's department store and the expansion of the Wal-Mart
from an 116,000 square foot store to a Superstore format in 197,000 square feet.
The Kohl's store is already open and Wal-Mart is expected to open in the spring
of 2004. As a result of the redevelopment, the shopping center will grow from
221,000 square feet to 346,000 square feet.
"We are very excited about the expansion and transformation of our Troy
Towne Center", said Dennis Gershenson. "When built in 1990, the shopping center
included a small format Wal-Mart and a 40,000 square foot County Market grocery
store. Since that time, the trade area population has grown substantially and
significant supermarket competition entered the trade area. In order to protect
its competitive advantage, Wal-Mart wanted to expand to a Superstore format. Our
management team was able to terminate the County Market lease replacing them
with a Kohl's Department Store. The departure of the supermarket opened the
opportunity for Wal-Mart to expand their operation to a superstore. The
reformatted project will substantially increase the shopping center's trade area
draw."
A number of additional shopping centers are in various stages of
repositioning including the Shoppes of Lakeland, Taylors Square, Holcomb Center,
Northwest Crossing, Taylor Plaza and Naples Towne Centre. We expect to make
announcements concerning these redevelopments throughout the year.
Leasing
Leasing activity during the quarter produced results that reinforce the
strength of the Company's shopping centers. The Company opened 13 new non-anchor
stores, at an average base rent of $17.78 per square foot, which is 45.0% above
portfolio average. The Company also renewed 45 non-anchor leases at an average
increase of 5.5% over prior rental rates.
Acquisitions
During the quarter the Company purchased the Livonia Plaza shopping center
in Livonia, Michigan. The 123,000 square-foot shopping center is anchored by a
Kroger Supermarket and TJ Maxx. Livonia Plaza is located on the south side of
Five Mile Road east of Merriman, a major surface artery that connects Detroit's
western suburbs. The center was purchased for $13 million. An expansion of the
center is already planned.
5
Market Capitalization and Debt
Total capitalization as of March 31, 2003 was approximately $799.7 million
compared to $569.2 as of March 31, 2002. Total debt for the quarter was $438.9
million with an average interest rate of 6.5% and an average maturity of 44
months. Debt to market capitalization at the end of the quarter was 54.9%
compared to 62.5% at March 31, 2002. The EBITDA interest coverage ratio was 2.2
times for the first quarter of 2003.
Dividend
The Company paid a quarterly common share cash dividend of $0.42 per share
on April 15, 2003 to its shareholders of record as of March 31, 2003, based on
an annual dividend of $1.68 per share.
2003 Guidance
As stated previously, the Company estimates that its 2003 FFO per share will
be between $2.23 and $2.33.
RPT will host a live broadcast of its 1st Quarter conference call on April
24, 2003 at 9:00 a.m. eastern time, to discuss its financial results and 2003
guidance. The live broadcast will be available online at www.rgpt.com and
www.streetevents.com and also by telephone at (800) 539-5010 (no passcode
needed). A replay will be available shortly after the call on the aforementioned
websites (for ninety days) or by telephone at (800) 642-1687, passcode 14090
(for one week).
Supplemental financial information is available via e-mail by sending
requests to dhendershot@rgpt.com and is also available at the investor section
of our Web page.
Ramco-Gershenson Properties Trust has a portfolio of 60 shopping centers
totaling approximately 11.8 million square feet of gross leasable area,
consisting of 59 community centers, of which nine are power centers and three
are single tenant properties, as well as one enclosed regional mall. The
Company's centers are located in Michigan, Ohio, Wisconsin, New Jersey,
Maryland, Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama
and Florida. Headquartered in Southfield, Michigan, the Company 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.
6
Ramco-Gershenson Properties Trust
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
Three Three
Months Months
Ended Ended
3/31/03 3/31/02
-------- --------
REVENUES
Minimum rents $ 17,446 $ 13,868
Percentage rents 659 522
Recoveries from tenants 7,703 5,948
Fees and management income 208 651
Interest and other income 479 750
-------- --------
Total Revenues 26,495 21,739
-------- --------
EXPENSES
Real estate taxes 3,300 2,572
Recoverable operating expenses 4,282 3,384
Depreciation and amortization 5,102 4,010
Other operating 389 312
General and administrative 2,221 2,051
Interest expense 7,340 6,310
-------- --------
Total Expenses 22,634 18,639
-------- --------
Operating income 3,861 3,100
Earnings from unconsolidated entities 82 169
-------- --------
Income from continuing operations before minority
interest 3,943 3,269
Minority interest (792) (983)
-------- --------
Income from continuing operations 3,151 2,286
Income from discontinued operations, net of minority
interest - 151
-------- --------
Net income 3,151 2,437
Preferred dividends (594) (828)
-------- --------
Net income available to common shareholders $ 2,557 $ 1,609
======== ========
Basic earnings per share:
Income from continuing operations $ 0.21 $ 0.21
Income from discontinued operations 0.00 0.02
-------- --------
7
Net Income $ 0.21 $ 0.23
======= =======
Diluted earnings per share:
Income from continuing operations $ 0.21 $ 0.20
Income from discontinued operations 0.00 0.03
------- -------
Net Income $ 0.21 $ 0.23
======= =======
Weighted average shares outstanding:
Basic 12,277 7,089
======= =======
Diluted 12,410 7,146
======= =======
Ramco-Gershenson Properties Trust
Calculation of Funds from Operations(1)
(In thousands, except per share data)
(Unaudited)
Three Three
Months Months
Ended Ended
3/31/03 3/31/02
------- -------
Net income available to common shareholders $ 2,557 $ 1,609
Add:
Depreciation and amortization expense 5,098 3,971
Minority interest in partnership:
Continuing operations 792 983
Discontinued operations -- 63
------- -------
Funds from Operations-basic 8,447 6,626
Add:
Convertible preferred share dividends(2) -- 828
------- -------
Funds from Operations-diluted 8,447 7,454
======= =======
Funds from Operations per share:
Basic $ 0.56 $ 0.66
======= =======
Diluted $ 0.55 $ 0.62
======= =======
Basic weighted average shares outstanding(3) 15,208 10,034
Convertible Preferred shares and options(2) 133 2,057
------- -------
Diluted weighted average shares outstanding(3) 15,341 12,091
======= =======
8
Ramco-Gershenson Properties Trust
Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2003 2002
-------- -----------
ASSETS (unaudited)
Investment in real estate, net $642,027 $628,953
Cash and cash equivalents 9,682 9,974
Accounts receivable, net 23,439 21,425
Equity investments in and advances to
unconsolidated entities 9,647 9,578
Other assets, net
25,191 27,912
-------- --------
Total Assets $709,986 $697,842
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgages and notes payable $438,905 $423,248
Distributions payable 6,991 6,384
Accounts payable and accrued expenses 18,323 20,621
-------- --------
Total Liabilities 464,219 450,253
Minority Interest 46,147 46,586
Commitments and Contingencies -- --
Shareholders' Equity 199,620 201,003
-------- --------
Total Liabilities and
Shareholders' Equity $709,986 $697,842
======== ========
(1) Management generally considers funds from operations ("FFO") an
appropriate supplemental measure of our financial performance because it
is predicated on cash flow analyses. We have adopted the most recent
National Association of Real Estate Investment Trusts ("NAREIT")
definition of FFO, which was amended on April 4, 2002, to reflect the
adoption that FFO from income-producing property held for sale, sold or
otherwise transferred and reported in income from discontinued
operations, should be included in FFO. 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 sales of depreciable property, plus
real estate related depreciation and amortization (excluding
amortization of financing costs), and after adjustments for
unconsolidated partnerships and joint ventures. Our computation of FFO
may, however, differ from the methodology for calculating FFO
9
utilized by other real estate companies, and therefore, may not be
comparable to these other real estate companies. FFO should not be
considered an alternative to net income as an indication of our
performance or to cash flows as a measure of liquidity or our ability to
pay distributions.
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.
(2) Series B preferred shares are not convertible into common shares.
Therefore they are excluded from the calculation.
(3) For basic FFO, represents the weighted average total shares outstanding,
assuming the redemption of all Operating Partnership Units for Common
Shares. For diluted FFO, represents the weighted average total shares
outstanding, assuming the redemption of all Operating Partnership Units
for Common Shares, the Series A Preferred Shares converted to Common
Shares in 2002 and the Common Shares issuable under the treasury stock
method upon exercise of stock options.
For more information on Ramco-Gershenson Properties Trust visit
the Company's Website @ www.rgpt.com
--30--CM/cl*
CONTACT: Ramco-Gershenson Properties Trust
Dennis Gershenson or Richard Smith, 248/350-9900
FAX: 248/350-9925
KEYWORD: MICHIGAN
INDUSTRY KEYWORD: REAL ESTATE CONFERENCE CALLS
SOURCE: Ramco-Gershenson Properties Trust
ZZZZZ
10