Exhibit 99.1
Ramco-Gershenson Properties Trust Reports Results for the Second
Quarter 2006
FARMINGTON HILLS, Mich.--(BUSINESS WIRE)--July 19,
2006--Ramco-Gershenson Properties Trust (NYSE:RPT) announced today
results for the second quarter ended June 30, 2006.
Financial Information for quarter ended June 30, 2006:
-- Diluted FFO per share of $0.63
-- Diluted FFO of $13.5 million, a 7.1% increase over last year
-- Net income of $4.8 million, a 17.1% increase over last year
-- Diluted earnings per share of $0.18, a 20.0% increase over
last year
Operating Highlights for quarter ended June 30, 2006:
-- Opened first phase of River City Marketplace in Jacksonville,
Florida
-- Commenced five value-added redevelopment projects
-- Acquired Paulding Pavilion in Hiram, Georgia
-- Opened 31 stores,10.4% over portfolio average rents
-- Renewed 29 leases, 8.2% over prior rental rates
-- Increase in same center operating income of 2.6%
-- Increase in portfolio occupancy to 94.6%, compared to 92.7% in
2005
For the three months ended June 30, 2006, diluted Funds from
Operations (FFO) increased 7.1% to $13.5 million, compared with $12.6
million for the three months ended June 30, 2005. On a per share
basis, FFO remained at $0.63. Net income for the three months ended
June 30, 2006, increased 17.1% to $4.8 million, compared with $4.1
million in 2005. On a per share basis, net income increased 20.0% to
$0.18, compared to $0.15 in 2005.
For the six months ended June 30, 2006, diluted FFO increased
10.6% to $27.1 million, compared with $24.5 million for the six months
ended June 30, 2005. On a per share basis, FFO increased 1.6% to
$1.25, compared with $1.23 in 2005. Net income for the six months
ended June 30, 2006, increased 14.3% to $10.4 million, compared with
$9.1 million in 2005. On a per share basis, net income increased 23.5%
to $0.42, compared to $0.34 in 2005.
"I am pleased to report our financial results and operating
activities for the second quarter, which were in line with our
expectations," said Dennis Gershenson, President and Chief Executive
Officer. "Highlights for the quarter include the first-phase opening
of our one million square foot River City Marketplace in Jacksonville,
Florida, the commencement of five value-added core portfolio
redevelopment projects and the posting of an increased occupancy rate
of 94.6%, nearly a 2.0% improvement over last year. We continue to
make great strides in all of our core disciplines and expect these
efforts to be reflected throughout the remainder of the year."
Development
During the quarter, the Company substantially completed
development of the Beacon Square shopping center in Grand Haven,
Michigan and on July 5, 2006, purchased the 90% membership interest
from its joint venture partner. The center is shadow-anchored by a
103,000 square foot Home Depot and contains approximately 51,000
square feet of retail space, including a 14,600 square foot Staples
store.
The Company also completed the first phase of its River City
Marketplace development in Jacksonville, Florida with the opening of
Wal-Mart, Office Max, Old Navy, Bed, Bath & Beyond, Ross Dress for
Less, PetSmart and Cracker Barrel. Additional anchor tenants, which
include Lowe's Home Improvement, Wallace (Hollywood) Theaters and
Michaels, are scheduled to open by early fall. To date, approximately
630,000 square feet of retail space has been leased or sold. A grand
opening of the center is planned for October of 2006.
Other developments in progress at quarter-end include Rossford
Pointe in Rossford, Ohio and The Shoppes of Fairlane Meadows in
Dearborn, Michigan. Both of these developments are adjacent to
shopping centers owned by the Company.
As of June 30, 2006, the Company had spent $80.8 million on these
projects, which have an expected aggregate cost of $109.9 million.
When complete, the centers will account for approximately 1.2 million
square feet of retail space.
Asset Management/Leasing
Ramco-Gershenson's commitment to finding opportunities for
improvement within its core portfolio remains a vital component of the
Company's business plan. During the second quarter, the Company
commenced five value-added redevelopment projects. These projects have
an estimated aggregate cost of $5.5 million and account for
approximately 150,000 square feet of gross leasable area. The projects
include:
-- Hunter's Square in Farmington Hills, Michigan: The Company
signed a lease for a 9,500 square foot Ulta, a multi-brand,
self-service cosmetic store to replace Eastern Mountain
Sports. In addition, the Company plans to reconfigure and
downsize anchor retailers in roughly 25,000 square feet to add
several small shop spaces at significantly higher rents.
-- Spring Meadows Place in Holland, Ohio: The Company is adding
Ashley Furniture in 36,320 square feet. This is the second
value-added improvement to this center in less than a year.
-- Roseville Town Center in Roseville, Michigan: The Company
signed a lease for a 21,000 square foot Office Depot to fill
the space left vacant when Marshall's relocated and expanded
to a 50,000 square foot Megastore within the center. With the
addition of Office Depot the center is 100% leased.
-- Mays Crossing in Stockbridge, Georgia: The Company has begun
construction of a 27,200 square foot ApplianceSmart Factory
Outlet bringing the occupancy of the center to 95%. The center
has also recently undergone a complete facade renovation.
-- Eastridge Commons in Flint, Michigan: The Company has signed
leases with Office Depot in 20,800 square feet and Dollar Tree
in 9,200 square feet to replace the vacant Staples space at
this center.
Including those projects discussed above, at June 30, 2006, the
Company was in the process of redeveloping a total of eight core
shopping centers at an aggregate cost of $16.4 million impacting
approximately 371,000 square feet of retail space.
Leasing was also strong throughout the portfolio. During the
quarter, the Company opened 25 non-anchor and 6 anchor stores, at an
average increase of 10.4% over portfolio average rents. The Company
also renewed 28 non-anchor and 1 anchor leases, at an average increase
of 8.2% over prior rental rates. Additionally, same center operating
income increased 2.6% for the quarter. At June 30, 2006, the portfolio
was 94.6% leased, compared to 92.7% at June 30, 2005.
Acquisitions
In April, the Company acquired Paulding Pavilion, a 72,300 square
foot community shopping center in Hiram, Georgia. The center is
well-located at the northeast corner of US Highway 278 and Georgia
Highway 92 and is part of a growing market. The Company intends to
capitalize on the redevelopment opportunities present at the center.
The purchase price was $8.4 million and there is no debt on the
property.
Market Capitalization and Debt
Total debt at quarter-end was approximately $702.3 million with an
average interest rate of 6.3% and an average maturity of 51 months, of
that $527.6 million was fixed rated debt and $174.7 million was
variable rate debt. At June 30, 2006, debt to market capitalization
was 53.6% and total capitalization approximated $1.3 billion.
Dividend/Share Repurchase
On July 3, 2006, the Company paid a second quarter dividend of
$0.4475 per common share, a second quarter dividend of $0.5938 per
Series B cumulative redeemable preferred share and a second quarter
dividend of $0.5664375 per Series C cumulative convertible preferred
share, for the period of April 1, 2006 through June 30, 2006 to
shareholders of record on June 20, 2006.
In the first quarter of 2006, the Company announced a $15.0
million common stock repurchase program and as of June 30, 2006, the
Company had repurchased 287,900 shares at an average price of $27.11
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 second quarter
conference call on Thursday, July 20, 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 (866) 362-5158
(participant code 86949375). A replay will be available shortly after
the call on the aforementioned Web sites (for 90 days) or by telephone
at (888) 286-8010 (pass code 49266400), 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 79 shopping
centers totaling approximately 17.9 million square feet of gross
leasable area, consisting of 78 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
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------------- -------------------
2006 2005 2006 2005
---------- --------- --------- ---------
(In thousands, except per share amounts)
(Unaudited)
REVENUES:
Minimum rents $25,151 $24,002 $49,785 $48,003
Percentage rents - 99 385 373
Recoveries from tenants 10,307 9,322 20,182 19,963
Fees and management income 1,519 1,521 2,761 2,738
Other income 1,440 1,589 1,880 2,335
---------- --------- --------- ---------
Total revenues 38,417 36,533 74,993 73,412
---------- --------- --------- ---------
EXPENSES:
Real estate taxes 4,891 4,629 9,768 9,177
Recoverable operating
expenses 5,634 4,901 11,236 10,721
Depreciation and
amortization 7,876 8,427 15,953 15,750
Other operating 917 392 1,619 849
General and administrative 3,295 3,869 7,396 7,588
Interest expense 10,989 10,803 21,559 21,134
---------- --------- --------- ---------
Total expenses 33,602 33,021 67,531 65,219
---------- --------- --------- ---------
Income from continuing
operations before loss on
sale of real estate assets,
minority interest and
earnings from unconsolidated
entities 4,815 3,512 7,462 8,193
Gain (Loss) on sale of real
estate assets 25 (1) 1,733 (4)
Minority interest (885) (642) (1,672) (1,373)
Earnings from unconsolidated
entities 755 647 1,492 931
-------------------- --------- ---------
Income from continuing
operations 4,710 3,516 9,015 7,747
---------- --------- --------- ---------
Discontinued operations, net
of minority interest:
Gain on sale of real estate
assets (3) - 954 -
Income from operations 70 623 393 1,303
---------- --------- --------- ---------
Income from discontinued
operations 67 623 1,347 1,303
---------- --------- --------- ---------
Net income 4,777 4,139 10,362 9,050
Preferred stock dividends (1,664) (1,664) (3,328) (3,328)
---------- --------- --------- ---------
Net income available to common
shareholders $3,113 $2,475 $7,034 $5,722
========== ========= ========= =========
Basic earnings per share:
Income from continuing
operations $0.18 $0.11 $0.34 $0.26
Income from discontinued
operations - 0.04 0.08 0.08
---------- --------- --------- ---------
Net income $0.18 $0.15 $0.42 $0.34
========== ========= ========= =========
Diluted earnings per share:
Income from continuing
operations $0.18 $0.11 $0.34 $0.26
Income from discontinued
operations - 0.04 0.08 0.08
---------- --------- --------- ---------
Net income $0.18 $0.15 $0.42 $0.34
========== ========= ========= =========
Basic weighted average shares
outstanding 16,679 16,836 16,763 16,833
========== ========= ========= =========
Diluted weighted average
shares outstanding 16,714 16,880 16,800 16,878
========== ========= ========= =========
COMPREHENSIVE INCOME
Net income $4,777 $4,139 $10,362 $9,050
Other comprehensive income :
Unrealized gains (losses)
on interest rate swaps 641 (111) 1,195 133
---------- --------- --------- ---------
Comprehensive income $5,418 $4,028 $11,557 $9,183
========== ========= ========= =========
RAMCO-GERSHENSON PROPERTIES TRUST
CALCULATION OF FUNDS FROM OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2006 2005 2006 2005
--------- -------- -------- --------
Net Income $4,777 $4,139 $10,362 $9,050
Add:
Depreciation and amortization
expense:
Continuing operations real
estate 8,460 8,953 17,125 16,412
Discontinued operations real
estate - 373 - 745
Loss (Gain) on sale of real
estate (1) - 2 (23)
Minority interest in
partnership:
Continuing operations 886 643 1,672 1,373
Discontinued operations 12 108 69 227
Less:
Discontinued operations, loss
(gain) on sale of property, net
of minority interest 3 - (954) -
--------- -------- -------- --------
Funds from operations 14,138 14,218 28,274 27,784
Less:
Series B Preferred Stock
dividend (594) (594) (1,188) (1,188)
Series C Preferred Stock
dividend - (1,070) - (2,140)
--------- -------- -------- --------
Funds from operations available to
common shareholders $13,544 $12,554 $27,086 $24,456
========= ======== ======== ========
Weighted average equivalent shares
outstanding, diluted 21,532 19,809 21,619 19,808
========= ======== ======== ========
Funds from operations available
for common shareholders, per
diluted share $0.63 $0.63 $1.25 $1.23
========= ======== ======== ========
(1) Excludes gain on sale of undepreciated land of $1,733 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
June 30, December 31,
2006 2005
----------- ------------
(Unaudited)
(In thousands, except
ASSETS per share amounts)
Investment in real estate, net $942,908 $922,103
Real estate assets held for sale - 61,995
Cash and cash equivalents 18,301 14,929
Accounts receivable, net 35,006 32,341
Equity investments in unconsolidated entities 53,691 53,398
Other assets, net 38,290 40,509
----------- ------------
Total Assets $1,088,196 $1,125,275
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgages and notes payable $702,291 $724,831
Accounts payable and accrued expenses 31,958 31,353
Distributions payable 10,388 10,316
Capital lease obligation 7,795 7,942
----------- ------------
Total Liabilities 752,432 774,442
Minority Interest 37,673 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;
16,566 and 16,847 issued and outstanding
as of June 30, 2006 and December 31,
2005, respectively 166 168
Additional paid-in capital 335,417 343,011
Accumulated other comprehensive income
(loss) 1,151 (44)
Cumulative distributions in excess of net
income (114,188) (106,270)
----------- ------------
Total Shareholders' Equity 298,091 312,410
----------- ------------
Total Liabilities and Shareholders'
Equity $1,088,196 $1,125,275
=========== ============
For further information on Ramco-Gershenson Properties Trust visit
the Company's Web site at www.rgpt.com
CONTACT: Ramco-Gershenson Properties Trust
Dennis Gershenson or Richard Smith, 248-350-9900
Fax: 248-350-9925