Exhibit 99.1
Ramco-Gershenson Properties Trust
Reports Results for Fourth Quarter and Year-End 2005
FARMINGTON HILLS, Mich.--(BUSINESS WIRE)--Feb. 15, 2006--
Ramco-Gershenson Properties Trust (NYSE:RPT) announced today
results for the fourth quarter and twelve months ended December 31,
2005.
Financial Information for Fourth Quarter 2005:
-- Diluted FFO per share of $0.60
-- Diluted FFO of $11.8 million
-- Total revenues of $35.4 million
-- Diluted EPS of $0.18
-- Quarterly dividend of $0.4375 per common share
Financial Information for Year-End 2005:
-- Diluted FFO per share of $2.42, a 16.9% increase over last
year
-- Diluted FFO of $47.9 million, a 15.7% increase over last year
-- Total revenues of $141.6 million, a 15.4% increase over last
year
-- Diluted EPS of $0.70, a 16.7% increase over last year
-- Annual dividend of $1.75 per common share
Company Highlights in 2005:
-- Acquired 9 shopping centers for Joint Venture with ING Clarion
completing over $378 million of the $450 million venture
commitment
-- Signed six anchor leases for the River City Marketplace
development in Jacksonville, Florida
-- Commenced the development of Rossford Pointe in Rossford, Ohio
and The Shoppes of Fairlane Meadows in Dearborn, Michigan
-- Entered into new $250 million unsecured credit facility
-- Refinanced $99 million of high interest rate long term debt
-- Replaced vacant Kmart with Home Depot in Taylor, Michigan
-- Raised annual dividend over 4.0% to $1.75 per share
-- Won Master Planning Award for River City Marketplace
Development in Jacksonville, Florida
-- Opened 105 new non-anchor and 8 new anchor stores
-- Renewed 144 non-anchor leases, at an average increase of 4.2%
over prior rental rates
-- Increased overall average portfolio base rental rates to
$9.55, compared to $8.83 in 2004
-- Portfolio occupancy of 93.7%, up from 92.9% in 2004
Financial Results
For the three months ended December 31, 2005, diluted Funds from
Operations (FFO) decreased 3.3% or $0.4 million to a total of $11.8
million compared with $12.2 million for the three months ended
December 31, 2004. On a per share basis, diluted FFO decreased 1.6%,
or $0.01, to $0.60 in the fourth quarter of 2005, compared with $0.61
in the fourth quarter of 2004. Total revenues for the three months
ended December 31, 2005, increased 2.3% or $.8 million, to a total of
$35.4 million, compared with $34.6 million in 2004. Net income
decreased 17.9% or $1.0 million to a total of $4.6 million, compared
with $5.6 million in 2004. Diluted earnings per share decreased $0.06,
to $0.18, compared to $0.24 in 2004.
For the twelve months ended December 31, 2005, diluted FFO
increased 15.7% or $6.5 million to a total of $47.9 million compared
with $41.4 million for the twelve months ended December 31, 2004. On a
per share basis, diluted FFO increased 16.9% or $0.35 to $2.42 in 2005
compared with $2.07 in 2004. Total revenues for the twelve months
ended December 31, 2005, increased 15.4% or $18.9 million, to a total
of $141.6 million compared with $122.7 million in 2004. Net income
increased 22.5% or $3.4 million to a total of $18.5 million, compared
with $15.1 million in 2004. Diluted earnings per share increased
16.7%, or $0.10, to $0.70, compared to $0.60 in 2004.
"2005 was one of our busiest years to date. We met our key
financial objective, achieving 16.9% FFO per share growth, which was
driven by superior results in our three core disciplines;
acquisitions, development and asset management," said Dennis
Gershenson, President and Chief Executive Officer. "We purchased nine
shopping centers for our Joint Venture with ING Clarion, completing
over 84% of the $450 million joint venture commitment in less than one
year. We substantially completed the mid-box leasing for our River
City Marketplace development in Jacksonville, Florida and commenced
the construction of two new development projects; one in Michigan and
one in Ohio. Our redevelopment program continued on a healthy pace.
The Company initiated four new core shopping center value-added
redevelopments and identified a number of additional improvement
opportunities in our portfolio. Looking ahead, we would expect to
continue this accelerated pace to achieve an increase in FFO per share
of over 6.0% in 2006."
Operating Highlights
Acquisitions/Dispositions
The Company made substantial progress in fulfilling its $450
million commitment for its Joint Venture (the Venture) with the
Clarion Lion Properties Fund, a private equity real estate fund
advised by ING Clarion Partners. During the year, the Company acquired
nine shopping centers for the Venture bringing the total centers
purchased to date to twelve, with an aggregate purchase price of
$378.4 million and comprising over 2.4 million square feet of gross
leasable area. Of the twelve, six are located along the "gold coast"
of Florida. Four of the five Michigan centers are located in the
counties of Oakland and Macomb, which both exceed national and state
statistics for population growth and income levels.
In December, the Company purchased on balance-sheet Kissimmee
West, a 300,186 square foot community shopping center located in
Kissimmee, Florida. The Center is shadow anchored by a 184,600 square
foot Super Target. The center is also anchored by a 35,000 square foot
JoAnn Fabrics and a 32,000 square foot Marshall's.
Subsequent to year-end, the Company sold seven shopping centers
for the aggregate sale price of $47.0 million. The seven centers were
sold as a portfolio to Phillips Edison & Company and comprised
approximately 935,000 square feet and include Cox Creek in Florence,
Alabama; Crestview Corners in Crestview, Florida; Cumberland Gallery
in New Tazewell, Tennessee; Holly Springs Plaza in Franklin, North
Carolina; Indian Hills in Calhoun, Georgia; Edgewood Square in North
Augusta, South Carolina and Tellico Plaza in Lenoir City, Tennessee.
All of the shopping centers were located in tertiary markets. The
proceeds from the sale were used to pay down the Company's unsecured
revolving credit facility. The Company will continue to evaluate its
portfolio for potential future sales.
Development
During the year, the Company commenced two new development
projects, Rossford Pointe in Rossford, Ohio and The Shoppes of
Fairlane Meadows in Dearborn, Michigan. Rossford Pointe is situated on
a ten acre site adjacent to the Company's 480,000 square foot
Crossroads Centre. The Shoppes of Fairlane Meadows is being developed
on 2.2 acres to complement the Company's 313,000 square foot Fairlane
Meadows shopping center. Both the Rossford and Dearborn developments
demonstrate the viability of the existing centers' locations and
drawing power.
At year-end, the Company also had a number of substantial
development projects in process that encompass over 1.6 million square
feet of retail space. Beacon Square in Grand Haven, Michigan and
Gaines Marketplace in Gaines Township, Michigan are developments that
are substantially complete and are at a stage where only some of the
ancillary retail space needs to be leased. All of the anchors are open
and operating. The third development project, River City Marketplace,
in Jacksonville, Florida is the largest center presently under
construction. During the year, the Company leased over 230,000 square
feet of retail space. Recently announced anchor commitments include
Ross Dress for Less, PetSmart, Michaels, Old Navy, OfficeMax as well
as an eighteen screen Wallace (Hollywood) Theater. The Company
previously announced that it sold a 19 acre parcel of land to Wal-Mart
for the construction of a 204,000 square foot supercenter. A majority
of the anchor retailers, including Wal-Mart, are scheduled to open in
the second quarter of 2006.
As of December 31, 2005, the Company had spent $64.5 million on
the developments in progress, which have an estimated total project
cost of $116.4 million.
Asset Management
During 2005, the improvement of core shopping centers remained a
vital part of the Company's business plan. The Company completed
value-added redevelopments of three shopping centers: Jackson Crossing
in Jackson, Michigan; New Towne Plaza in Canton, Michigan; and Spring
Meadows in Holland, Ohio. Each of the projects involved the addition
or expansion of a national anchor retailer eager to increase its
presence in the local market. The aggregate project cost for the
redevelopments was $6.9 million, producing a 9.4% return on new
dollars invested.
In addition, the Company continued to identify areas within its
core portfolio to add value. In 2005, the Company commenced the
following redevelopment projects:
-- Tel-Twelve in Southfield, Michigan: The Company terminated
both the Media Play and Circuit City leases with the
expectation of replacing them with new national retail anchor
draws.
-- Northwest Crossing in Knoxville, Tennessee: A lease has been
signed for a 35,000 square foot H.H. Gregg. This is the second
repositioning undertaken at the center in a little over a
year. Wal-Mart was recently expanded to a 201,000 square foot
supercenter.
-- Taylor Plaza in Taylor, Michigan: A ground lease was signed
for 11.64 acres with Home Depot for a 102,000 square foot
store to replace the demolished Kmart at the site.
-- Clinton Valley shopping center in Sterling Heights, Michigan:
Big Lots in 30,847 square feet recently opened in the majority
of the former Service Merchandise space. A lease has been
signed with Save-A-Lot in 19,414 square feet for the balance
of the building.
At year-end, the Company had 7 redevelopment projects in process
with a total project cost of $28.3 million.
Leasing/Same Center Operating Results
During 2005, the Company opened 105 new non-anchor stores, at an
average base rent of $14.63 per square foot. The Company also renewed
144 non-anchor leases, at an average base rent of $13.88, achieving an
increase of 4.2% over prior rental rates. Additionally, the Company
signed 8 new anchor leases during the year. Overall portfolio average
base rents increased to $9.55 per square feet in 2005 from $8.83 in
2004. Same center net operating income increased 2.3% over 2004. At
year-end, the portfolio was 93.7% leased, compared to 92.9% for
year-end 2004.
Financing Activity, Debt and Market Capitalization
During the year, the Company repaid early and without penalty
$99.3 million in mortgage loans with Lincoln National Life Insurance
Company. The loans were secured by ten of the Company's assets and
carried a blended interest rate of 8.3%. As part of this refinancing,
the Company entered into long term loans for three of the ten shopping
centers. These new loans have a ten year maturity, with five years of
interest only payments, and carry a blended fixed interest rate of
approximately 5.2%. The proceeds from these financings approximated
$65.7 million and were used to pay down a portion of a term loan
facility entered into with KeyBank for the repayment of the Lincoln
loans.
In December, the Company entered into a $250 million unsecured
credit facility with the Company's bank group led by KeyBank. The new
financing is comprised of a three-year $150 million unsecured
revolving credit facility, which includes a built-in accordion feature
providing for up to $100 million in additional borrowings, as well as
a five-year $100 million unsecured term loan. The revolving credit
facility can be extended for up to an additional two years at the
Company's option. Pricing on the facility depends on the Company's
leverage and is set at LIBOR plus 115 to 150 basis points for the
revolver and LIBOR plus 130 to 165 basis points for the term loan.
Proceeds from the new financings were used to pay off the Company's
secured and unsecured revolving credit facilities as well as the
balance of the ten property bridge loan and a construction loan that
was entered into earlier this year.
Total debt at year-end was $724.8 million with an average interest
rate of 6.0% and an average maturity of 56 months. Total
capitalization for the Company was approximately $1.3 billion at
December 31, 2005, with debt to market capitalization of 54.3%.
Dividend
In March 2005, the Company's Board of Trustees approved a 4%
increase in the annual common share dividend paid quarterly in the
months of April, July, October and January. The increase raised the
2005 annual dividend from $1.68 to $1.75.
On January 3, 2006, the Company paid a fourth quarter dividend of
$0.4375 per common share, a fourth quarter dividend of $0.5938 per
Series B cumulative redeemable preferred share and a fourth quarter
dividend of $0.5664375 per Series C cumulative convertible preferred
share, for the period of October 1, 2005 through December 31, 2005 to
shareholders of record on December 20, 2005.
Earnings Guidance/Conference Call
The Company expects 2006 annual diluted FFO per share to be
between $2.53 and $2.58, and plans to discuss these estimates as part
of its fourth quarter conference call. In addition, the Company
expects earnings per diluted common share to be between $0.79 and
$0.84.
Ramco-Gershenson will host a live broadcast of its fourth
quarter/year-end conference call on February 16, 2006 at 10:00 a.m.
eastern time, to discuss its financial results and 2006 guidance. The
live broadcast will be available online at www.rgpt.com and
www.streetevents.com and also by telephone at (800) 539-5010 (passcode
4645689). A replay will be available shortly after the call on the
aforementioned websites (for ninety days) or by telephone at (800)
642-1687, passcode 4645689 (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 77 shopping
centers totaling approximately 17.4 million square feet of gross
leasable area, consisting of 76 community centers and one enclosed
regional mall. The Company's centers are located in Michigan, Florida,
Georgia, Ohio, Wisconsin, Tennessee, Indiana, New Jersey, Virginia,
South Carolina, North Carolina, and Maryland. Headquartered in
Farmington Hills, 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.
RAMCO-GERSHENSON PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
-------------------- ---------------------
2005 2004 2005 2004
---------- --------- ---------- ----------
Revenues
Minimum rents $23,354 $23,774 $92,841 $84,719
Percentage rents 195 166 733 810
Recoveries from tenants 9,694 9,617 38,548 33,116
Fees and management income 1,619 407 5,478 2,506
Other income 494 601 4,023 1,590
---------- --------- ---------- ----------
Total revenues 35,356 34,565 141,623 122,741
---------- --------- ---------- ----------
Expenses
Real estate taxes 4,415 4,893 17,785 16,107
Recoverable operating
expenses 6,016 5,524 21,600 18,928
Depreciation and
amortization 7,500 7,143 30,211 25,312
Other operating 1,588 597 3,202 1,575
General and administrative 2,930 2,707 13,509 11,145
Interest expense 10,570 10,223 42,421 34,525
---------- --------- ---------- ----------
Total expenses 33,019 31,087 128,728 107,592
---------- --------- ---------- ----------
Operating income 2,337 3,478 12,895 15,149
Impairment of investment in
unconsolidated entity - - - (4,775)
---------- --------- ---------- ----------
Income from continuing
operations before gain on
sale of real estate
assets, minority interest
and earnings from
unconsolidated entities 2,337 3,478 12,895 10,374
Gain on sale of real estate
assets 510 2,177 1,136 2,408
Minority interest (598) (867) (2,556) (1,988)
Earnings from unconsolidated
entities 859 39 2,400 180
---------- --------- ---------- ----------
Income from continuing
operations 3,108 4,827 13,875 10,974
Income from discontinued
operations 1,531 797 4,618 4,146
---------- --------- ---------- ----------
Net income 4,639 5,624 18,493 15,120
Preferred stock dividends (1,664) (1,664) (6,655) (4,814)
---------- --------- ---------- ----------
Net income available to
common shareholders $2,975 $3,960 $11,838 $10,306
========== ========= ========== ==========
Basic earnings per share:
Income from continuing
operations $0.09 $0.19 $0.43 $0.37
Income from discontinued
operations 0.09 0.05 0.27 0.24
---------- --------- ---------- ----------
Net income $0.18 $0.24 $0.70 $0.61
========== ========= ========== ==========
Diluted earnings per share:
Income from continuing
operations $0.09 $0.19 $0.43 $0.36
Income from discontinued
operations 0.09 0.05 0.27 0.24
---------- --------- ---------- ----------
Net income $0.18 $0.24 $0.70 $0.60
========== ========= ========== ==========
Basic weighted average
shares outstanding 16,841 16,822 16,837 16,816
========== ========= ========== ==========
Diluted weighted average
shares outstanding 16,879 17,032 16,880 17,031
========== ========= ========== ==========
RAMCO-GERSHENSON PROPERTIES TRUST
CALCULATION OF FUNDS FROM OPERATIONS
(In thousands)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ --------------------
2005 2004 2005 2004
--------- -------- --------- ----------
Net income $4,639 $5,624 $18,493 $15,120
Add:
Depreciation and amortization
expense 7,967 7,633 33,335 27,250
Loss on sale of depreciable
property 16 (350) (637) 1,115
Minority interest in
partnership:
Continuing operations 598 867 2,556 1,988
Discontinued operations 267 139 804 720
--------- -------- --------- ----------
Funds from operations 13,487 13,913 54,551 46,193
Less:
Preferred stock dividends (1,664) (1,664) (6,655) (4,814)
--------- -------- --------- ----------
Funds from operations available
to common shareholders (1) $11,823 $12,249 $47,896 $41,379
========= ======== ========= ==========
Weighted average equivalent
shares outstanding (2)
Basic 19,770 19,752 19,766 19,746
========= ======== ========= ==========
Diluted 19,808 19,991 19,810 19,961
========= ======== ========= ==========
Funds from operations available
for common shareholders,
per diluted share $0.60 $0.61 $2.42 $2.07
========= ======== ========= ==========
(1) Management considers funds from operations, also known as "FFO,"
an appropriate supplemental measure of the financial performance
of an equity REIT. 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 ("GAAP"), 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. FFO should not
be considered an alternative to GAAP net income as an indication
of our performance. We consider FFO as a useful measure for
reviewing our comparative operating and financial performance
between periods or to compare our performance to different REITs.
However, our computation of FFO may differ from the methodology
for calculating FFO utilized by other real estate companies, and
therefore, may not be comparable to these other real estate
companies.
(2) Basic weighted average shares outstanding represents the weighted
average total shares outstanding, which includes common shares and
assumes the redemption of all Operating Partnership Units for
common shares. Diluted weighted average shares outstanding
represents the basic weighted average common shares outstanding
and the dilutive impact of in-the-money stock options.
RAMCO-GERSHENSON PROPERTIES TRUST
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
December 31,
-----------------------
2005 2004
----------- -----------
Assets
Investment in real estate, net $922,103 $951,176
Real estate assets held for sale 61,995 -
Cash and cash equivalents 14,929 15,045
Accounts receivable, net 32,341 26,845
Equity investments in unconsolidated entities 53,398 9,182
Other assets, net 40,509 41,530
----------- -----------
Total Assets $1,125,275 $1,043,778
=========== ===========
Liabilities and Shareholders' Equity
Mortgages and notes payable $724,831 $633,435
Accounts payable and accrued expenses 31,353 30,003
Distributions payable 10,316 9,963
Capital lease obligation 7,942 -
----------- -----------
Total Liabilities 774,442 673,401
Minority Interest 38,423 40,364
Shareholders' Equity
Preferred Shares of Beneficial Interest, par
value $.01, 10,000 shares authorized:
9.5% Series B Cumulative Redeemable Preferred
Shares; 1,000 issued and outstanding,
liquidation value of $25,000 23,804 23,804
7.95% Series C Cumulative Convertible
Preferred Shares; 1,889 issued and
outstanding, liquidation value of
$53,837 51,741 51,741
Common Shares of Beneficial Interest, par
value $.01, 30,000 shares authorized;
16,847 and 16,829 issued and outstanding,
as of December 31, 2005 and 2004,
respectively 168 168
Additional paid-in capital 343,011 342,719
Accumulated other comprehensive income (loss) (44) 220
Cumulative distributions in excess of net
income (106,270) (88,639)
----------- -----------
Total Shareholders' Equity 312,410 330,013
Total Liabilities and Shareholders' Equity $1,125,275 $1,043,778
=========== ===========
For more information on Ramco-Gershenson Properties Trust visit
our Website: www.rgpt.com
CONTACT: Ramco-Gershenson Properties Trust
Dennis Gershenson or Richard Smith, 248-350-9900
Fax: 248-350-9925