Exhibit 99.1
Ramco-Gershenson Properties Trust Reports Results for the First Quarter 2006
FARMINGTON HILLS, Mich.--(BUSINESS WIRE)--April 26, 2006--Ramco-Gershenson
Properties Trust (NYSE:RPT) announced today results for the first quarter ended
March 31, 2006.
Financial Information:
-- Diluted FFO per share of $0.62, a 3.3% increase over last year
-- Diluted FFO of $13.5 million, a 13.4% increase over last year
-- Net income of $5.6 million, a 14.3% increase over last year
-- Diluted earnings per share of $0.23, a 21.1% increase over last year
Company Highlights:
-- Increased quarterly common share dividend 2.3% to $0.4475 per share
-- Sold seven non-core assets for $47.0 million
-- Announced share repurchase program
-- Signed six mid-box leases totaling 167,000 square feet
-- Sold 17 acre land parcel to Lowe's at River City Marketplace in
Jacksonville, FL
-- Opened 20 new non-anchor stores, 14.0% over portfolio average rents
-- Renewed 67 non-anchor leases, 9.5% over prior rental rates
-- Portfolio occupancy of 93.9%, compared to 92.6% in 2005
For the three months ended March 31, 2006, diluted Funds from Operations
(FFO) increased 13.4% to $13.5 million, compared with $11.9 million for the
three months ended March 31, 2005. On a per share basis, FFO increased 3.3% to
$0.62, compared with $0.60 in 2005. Net income for the three months ended March
31, 2006, was $5.6 million, compared with $4.9 million in 2005. On a per share
basis, net income increased 21.1% to $0.23, compared to $0.19 in 2005.
"We are pleased with our first quarter financial results, which were in
line with expectations," said Dennis Gershenson, President and Chief Executive
Officer. "We posted very solid leasing results, completed the sale of seven
non-core shopping centers and made substantial progress on our River City
Marketplace development. Through the remainder of the year, we will continue to
aggressively pursue opportunities within our markets and core portfolio to
advance our business plan."
Acquisitions/Dispositions
During the quarter, the Company sold seven non-core shopping centers for
the aggregate sale price of $47.0 million. The seven centers were sold as a
portfolio and comprised approximately 935,000 square feet. 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 and will be
reinvested to fund the Company's business plan.
Development
River City Marketplace, Jacksonville, Florida
During the quarter, the Company sold a 17 acre parcel to Lowe's Home
Improvement for $4.3 million as well as reimbursements for certain site work,
for the construction of a 177,000 square foot superstore at its River City
Marketplace development in Jacksonville, Florida. The Company also signed a
lease agreement for a 25,000 square foot Bed, Bath & Beyond. The addition of
Lowe's and Bed, Bath & Beyond rounds out an anchor line-up that accounts for
more than 565,000 square feet and includes a 204,000 square foot Wal-Mart,
scheduled to open in May of 2006, as well as Wallace (Hollywood) Theaters, Ross
Dress for Less, PetSmart, Michaels, Old Navy and OfficeMax, which are scheduled
to open throughout the summer.
Development Pipeline
At quarter-end, the Company had a total of four shopping centers under
development including the River City Marketplace in Jacksonville, Florida and
Beacon Square in Grand Haven, Michigan, which are part of unconsolidated joint
ventures, as well as Rossford Pointe in Rossford, Ohio and The Shoppes of
Fairlane Meadows in Dearborn, Michigan. To date the Company has spent $62.8
million on these projects, which have an expected aggregate cost of $104.6
million. When complete, the centers will account for approximately 1.2 million
square feet of retail space.
Asset Management/Leasing
At March 31, 2006, the Company had seven value-added redevelopment projects
in process with a total project cost of $28.6 million. Each of the projects
involves the expansion or addition of at least one major, national anchor
tenant. The most significant new redevelopment is the addition of Best Buy and
PetSmart, to replace Media Play and Circuit City, at the Tel-Twelve shopping
center in Southfield, Michigan. Best Buy and PetSmart are expected to open
during the second quarter of 2006. The balance of the redevelopments are
expected to be completed by year-end.
During the quarter, the Company opened 20 new non-anchor stores, at an
average base rent of $17.05 per square foot, an increase of 14.0% over portfolio
average rents and 2 anchor stores, at an average base rent of $12.63, an
increase of 68.8% over average rents. The Company also renewed 67 non-anchor
leases, at an average base rent of $13.13, an increase of 9.5% over prior rental
rates and 5 anchor leases, at an average base rent of $6.88, an increase of
12.0% over prior rents paid. At March 31, 2006, the portfolio was 93.9% leased,
compared to 92.6% at March 31, 2005.
Market Capitalization and Debt
Total debt at quarter-end was approximately $683.0 million with an average
interest rate of 6.2% and an average maturity of 55 months. As of March 31,
2006, debt to market capitalization was 49.9% and total capitalization
approximated $1.4 billion.
Dividend/Share Repurchase
On March 1, 2006, the Company's Board of Trustees approved an increase in
its common share dividend of approximately 2.3%. The increase raised the first
quarter common share dividend from $0.4375 per share to $0.4475 for the period
of January 1, 2006 through March 31, 2006. The dividend is based on an expected
annual dividend of $1.79 per share. The common share dividend was paid on April
3, 2006, to shareholders of record on March 20, 2006.
A first quarter dividend of $0.5938 per Series B cumulative redeemable
preferred share and a first quarter dividend of $0.5664375 per Series C
cumulative convertible preferred share, for the period of January 1, 2006
through March 31, 2006 were also paid on April 3, 2006, to shareholders of
record on March 20, 2006.
During the quarter, the Company announced a $15 million common share
repurchase program. Under the program, shares may be repurchased on the open
market and in privately negotiated transactions depending on market conditions,
share price and other factors. As of March 31, 2006, the Company repurchased
2,800 shares at an average price of $29.44 per common share. Subsequent to
quarter-end, the Company repurchased 74,400 shares at an average price of $27.53
per common share.
Earnings Guidance/Conference Call
As stated previously, the Company estimates that 2006 annual diluted FFO
will be between $2.53 and $2.58. It also expects earnings per diluted common
share to be between $0.79 and $0.84.
Ramco-Gershenson will host a live broadcast of its first quarter conference
call on Thursday, April 27, 2006 at 10:00 a.m. eastern time. The live broadcast
will be available online at www.rgpt.com and www.streetevents.com and also by
telephone at (800) 539-5010 (conference #7716187). A replay will be available
shortly after the call on the aforementioned websites (for ninety days) or by
telephone at (800) 642-1687, passcode 7716187 (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 78 shopping centers
totaling approximately 17.7 million square feet of gross leasable area,
consisting of 77 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 may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and should be
reviewed in conjunction with the Company's filings with the U.S. Securities and
Exchange Commission and other publicly available information regarding the
Company. Management of Ramco-Gershenson believes that expectations reflected in
forward-looking statements 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
Company's properties are located, the performance of tenants at the Company's
properties as well as other factors.
RAMCO-GERSHENSON PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In thousands, except per share amounts)
(Unaudited)
For the Three
Months Ended
March 31,
-----------------
2006 2005
-------- --------
REVENUES:
Minimum rents $24,634 $24,001
Percentage rents 385 274
Recoveries from tenants 9,874 10,641
Fees and management income 1,242 1,217
Other income 440 746
-------- --------
Total revenues 36,575 36,879
-------- --------
EXPENSES:
Real estate taxes 4,877 4,548
Recoverable operating expenses 5,602 5,820
Depreciation and amortization 8,077 7,323
Other operating 702 457
General and administrative 4,101 3,719
Interest expense 10,570 10,331
-------- --------
Total expenses 33,929 32,198
-------- --------
Income from continuing operations before gain on sale
of real estate assets, minority interest and
earnings from unconsolidated entities 2,646 4,681
Gain (Loss) on sale of real estate assets 1,708 (3)
Minority interest (786) (731)
Earnings from unconsolidated entities 737 284
-------- --------
Income from continuing operations 4,305 4,231
-------- --------
Discontinued operations, net of minority interest
Gain on sale of real estate assets 957 -
Income from operations 323 680
-------- --------
Income from discontinued operations 1,280 680
-------- --------
Net income 5,585 4,911
Preferred stock dividends (1,664) (1,664)
-------- --------
Net income available to common shareholders $3,921 $3,247
======== ========
Basic earnings per share:
Income from continuing operations $0.16 $0.15
Income from discontinued operations 0.07 0.04
-------- --------
Net income $0.23 $0.19
======== ========
Diluted earnings per share:
Income from continuing operations $0.16 $0.15
Income from discontinued operations 0.07 0.04
-------- --------
Net income $0.23 $0.19
======== ========
Basic weighted average shares outstanding 16,847 16,831
======== ========
Diluted weighted average shares outstanding 16,889 16,877
======== ========
COMPREHENSIVE INCOME
Net income $5,585 $4,911
Other comprehensive income:
Unrealized gains on interest rate swaps 554 244
-------- --------
Comprehensive income $6,139 $5,155
======== ========
RAMCO-GERSHENSON PROPERTIES TRUST
CALCULATION OF FUNDS FROM OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
-------------------
2006 2005
--------- ---------
Net Income $5,585 $4,911
Add:
Depreciation and amortization expense:
Continuing operations real estate 8,665 7,459
Discontinued operations real estate - 372
Gain on sale of real estate (1) - (25)
Minority interest in partnership:
Continuing operations 786 731
Discontinued operations 57 118
Less:
Discontinued operations, gain on sale of
property, net of minority interest (957) -
--------- ---------
Funds from operations 14,136 13,566
Less:
Preferred stock dividends (594) (1,664)
--------- ---------
Funds from operations available to common
shareholders $13,542 $11,902
========= =========
Weighted average equivalent shares outstanding,
diluted 21,707 19,806
========= =========
Funds from operations available for common
shareholders, per diluted share $0.62 $0.60
========= =========
- ------------------
(1) Excludes gain on sale of undepreciated land of $1,708 in 2006 and
$27 in 2005.
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.
RAMCO-GERSHENSON PROPERTIES TRUST
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
March 31, December 31,
2006 2005
------------- -------------
(Unaudited)
ASSETS
Investment in real estate, net $935,467 $922,103
Real estate assets held for sale - 61,995
Cash and cash equivalents 17,053 14,929
Accounts receivable, net 35,182 32,341
Equity investments in unconsolidated
entities 53,645 53,398
Other assets, net 39,210 40,509
------------- -------------
Total Assets $1,080,557 $1,125,275
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgages and notes payable $683,024 $724,831
Accounts payable and accrued expenses 31,666 31,353
Distributions payable 10,514 10,316
Capital lease obligation 7,851 7,942
------------- -------------
Total Liabilities 733,055 774,442
Minority Interest 38,087 38,423
SHAREHOLDERS' EQUITY
Preferred Shares of Beneficial Interest,
par value $.01, 10,000 shares
authorized:
9.5% Series B Cumulative Redeemable
Preferred Shares; 1,000 shares
issued and outstanding, liquidation
value of $25,000 23,804 23,804
7.95% Series C Cumulative Convertible
Preferred Shares; 1,889 shares
issued and outstanding, liquidation
value of $53,837 51,741 51,741
Common Shares of Beneficial Interest,
par value $.01, 45,000 shares
authorized; 16,847 issued and
outstanding as of March 31, 2006 and
December 31, 2005 168 168
Additional paid-in capital 343,080 343,011
Accumulated other comprehensive income 510 (44)
Cumulative distributions in excess of
net income (109,888) (106,270)
------------- -------------
Total Shareholders' Equity 309,415 312,410
------------- -------------
Total Liabilities and Shareholders'
Equity $1,080,557 $1,125,275
============= =============
For further information on Ramco-Gershenson Properties Trust visit the
Company's Website at www.rgpt.com
CONTACT: Ramco-Gershenson Properties Trust
Dennis Gershenson or Richard Smith, 248-350-9900
FAX: 248-350-9925