Exhibit 99.1
Ramco-Gershenson Properties Trust
Reports Results for First Quarter 2007
FARMINGTON HILLS, Mich.--(BUSINESS WIRE)--April 25,
2007--Ramco-Gershenson Properties Trust (NYSE:RPT) announced today
results for the first quarter ended March 31, 2007.
Financial Information for the First Quarter 2007:
-- Diluted FFO per share of $0.66, an increase of 6.5%
-- Diluted FFO of $14.2 million, an increase of 5.2%
-- Total revenues of $40.1 million, an increase of 9.6%
-- Diluted EPS from continuing operations of $1.25 (includes
$1.06 per share gain on the sale of real estate)
Company Highlights for the First Quarter 2007:
-- Increased quarterly common share dividend 3.4% to $0.4625 per
share
-- Completed three joint venture acquisitions
-- Increased same center operating income by 4.3%
-- Began the redevelopment of Collins Pointe Plaza in
Cartersville, Georgia
-- Opened 27 new non-anchor stores, 28.9% over portfolio average
rents
-- Renewed 40 non-anchor leases, 9.7% over prior rental rates
Financial Results
For the three months ended March 31, 2007, diluted Funds from
Operations (FFO) increased 5.2% to $14.2 million compared with $13.5
million for the three months ended March 31, 2006. On a per share
basis, diluted FFO increased 6.5% to $0.66, compared with $0.62 in
2006. Total revenues increased 9.6% to $40.1 million, compared to
$36.6 million in 2006. Income from continuing operations was $23.9
million, which included a gain on the sale of real estate assets of
$19.1 million, net of minority interest, compared to $4.3 million in
2006. On a diluted per share basis, income from continuing operations
was $1.25 per share compared to $0.16 per share in 2006.
"We are pleased with our first quarter results," said Dennis
Gershenson, President and Chief Executive Officer. "We made key
acquisitions for our ING Clarion and Heitman joint ventures, posted
very solid leasing results and continued to capitalize on
opportunities within our core portfolio. We remain committed to
strengthening our balance sheet and the generation of sustainable,
long-term FFO growth. To that end we recently announced the redemption
of our Series C Preferred Shares and the acquisition of our joint
venture partner's interest in River City Marketplace. We will continue
to pursue an aggressive business plan to meet our objectives."
Operating Highlights
Acquisitions
During the first quarter, the Company sold Chester Springs
Shopping Center in Chester, New Jersey to its $450 million joint
venture with an investor advised by Heitman LLC. Chester Springs is
the last of three Ramco seed properties to be sold to the joint
venture. The other two seed properties, Merchants' Square in Carmel,
Indiana and Crofton Centre in Crofton, Maryland were sold in the
fourth quarter of 2006. The joint venture also acquired Peachtree Hill
center in Duluth, Georgia (a suburb of Atlanta) in February of 2007.
Peachtree Hill is a 149,233 square foot community shopping center
anchored by a Kroger Supermarket. The Heitman joint venture now
consists of four shopping centers with a total initial value of $149.1
million.
Also during the quarter, the Company's $450 million joint venture
with ING Clarion acquired Cocoa Commons, a 75,120 square foot Publix
anchored community shopping center located in Cocoa, Florida and
Cypress Pointe shopping center, a 158,685 square foot community center
anchored by Fresh Market and Burlington Coat Factory located in
Clearwater, Florida. These acquisitions bring the total number of
shopping centers purchased by the joint venture to 15 with an
aggregate initial value of $429.4 million.
Development
During the first quarter, the Company substantially completed the
River City Marketplace development in Jacksonville, Florida. As of
March 31, 2007, the Company had secured retailer commitments for 96%
of the shopping center. The commitments consist of 681,775 square feet
of anchor space and 166,812 square feet of ancillary and outlot
tenancy. On April 16, 2007, the Company acquired its joint venture
partner's interest in the shopping center and became the sole owner of
the property.
At quarter-end the Company has three developments in progress
impacting approximately 1.2 million square feet. As of March 31, 2007,
the Company had spent $98.1 million on the developments in progress,
which have an estimated total project cost of $117.2 million.
The Company is actively pursuing two additional development
projects, which it expects to commence in the fourth quarter of 2007
or the first quarter of 2008.
Redevelopment
During the quarter the Company commenced the redevelopment of the
81,042 square foot Collins Pointe Plaza in Cartersville, Georgia (a
suburb of Atlanta). The Company is in the process of retenanting the
46,300 square foot vacant Winn Dixie space and is constructing an
outlot building and additional small shop space in approximately
25,000 square feet. Collins Pointe Plaza was purchased by the Company
in August of 2006 and sold to its $75 million Heitman joint venture in
November of 2006. This Heitman joint venture is focused on
acquisitions that have substantial value-added opportunities.
At March 31, 2007, the Company had six value-added redevelopment
projects in process for Company owned or joint venture properties with
a total project cost of $25.4 million. Each of the projects involves
the expansion or addition of at least one major, national anchor
tenant.
Leasing/Same Center Operating Results
During the first quarter, the Company and its joint ventures
opened 27 new non-anchor stores in 71,068 square feet, at an average
base rent of $19.92 per square foot, an increase of 28.9% over
portfolio average rents. The Company also renewed 40 non-anchor leases
in 103,148 square feet, at an average base rent of $15.53 per square
foot, an increase of 9.7% over prior rental rates. Same-center
property operating income increased 4.3%. At March 31, 2007, the
portfolio occupancy was 92.8%.
Debt and Market Capitalization
In March, Ramco Jacksonville LLC, the joint venture developing
River City Marketplace in Jacksonville, Florida, entered into a $110
million long-term fixed-rate financing agreement with JPMorgan Chase
Bank, N.A., of which $75 million was funded and used to replace
construction financing on the project. The interest only loan is for
10 years and bears interest at 5.4%. On April 16, 2007, the Company
acquired its partner's interest in Ramco Jacksonville LLC to become
the sole owner of the shopping center. Subsequent to quarter-end, the
Company drew the remaining $35 million of the loan to fund future
development costs at the project and to pay down existing higher rate
debt.
Total debt at quarter-end was approximately $640.8 million with an
average interest rate of 6.3% and an average maturity of 42 months. Of
that total debt, $463.2 million was fixed rate debt and $177.6 million
was variable rate debt. As of March 31, 2007, debt to market
capitalization was 44.7% and total capitalization approximated $1.4
billion.
Dividend/Preferred Share Redemption
In March 2007, the Company's Board of Trustees approved a 3.4%
increase in the annual common share dividend paid quarterly in the
months of April, July, October and January based on an expected annual
dividend of $1.85.
The increase raised the first quarter common share dividend for
the period of January 1, 2007 through March 31, 2007, from $0.4475 per
share to $0.4625 per share, which was paid on April 2, 2007 to
shareholders of record on March 20, 2007.
On April 2, 2007, the Company also paid 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, 2007 through
March 31, 2007 to shareholders of record on March 20, 2007.
Subsequent to quarter-end, the Company announced that it will
redeem all of its outstanding 7.95% Series C cumulative convertible
preferred shares of beneficial interest, (NYSE:RPT.PRC) on June 1,
2007. The 1,888,000 Series C preferred shares will be redeemed at
$28.50 per share. Each Series C Preferred Share is presently
convertible into the Trust's common shares of beneficial interest at
the option of the holder at a conversion price of $28.50 per share.
Earnings Guidance/Conference Call
The Company expects 2007 annual diluted FFO per share to be
between $2.61 and $2.69. In addition, the Company expects earnings per
diluted common share to be between $1.95 and $2.05.
Management considers funds from operations, also known as "FFO" to
be an appropriate supplemental measure of financial performance for a
REIT. Please see the reconciliation of funds from operations to net
income later in this press release.
Ramco-Gershenson will host a live broadcast of its first quarter
conference call on Thursday, April 26, 2007 at 10:00 a.m. eastern
time, to discuss its financial results. The live broadcast will be
available online at www.rgpt.com and www.streetevents.com and also by
telephone at (800) 659-2032, passcode 78011059. A replay will be
available shortly after the call on the aforementioned websites (for
ninety days) or by telephone at (888) 286-8010, passcode 27491908 (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, headquartered in Farmington
Hills, Michigan, 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. As of
March 31, 2007, Ramco-Gershenson owned interests in 84 shopping
centers totaling approximately 18.8 million square feet of gross
leasable area in Michigan, Florida, Georgia, Ohio, Wisconsin,
Tennessee, Indiana, New Jersey, Virginia, South Carolina, North
Carolina, and Maryland. For further information on Ramco-Gershenson
Properties Trust visit the Company's website at www.rgpt.com.
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 AND COMPREHENSIVE INCOME
(In thousands, except per share amounts)
(Unaudited)
For the Three Months
Ended March 31,
----------------------
2007 2006
----------- ----------
REVENUES:
Minimum rents $24,273 $24,634
Percentage rents 312 385
Recoveries from tenants 11,736 9,874
Fees and management income 2,604 1,242
Other income 1,178 440
----------- ----------
Total revenues 40,103 36,575
----------- ----------
EXPENSES:
Real estate taxes 5,171 4,877
Recoverable operating expenses 6,683 5,602
Depreciation and amortization 8,137 8,077
Other operating 509 702
General and administrative 3,033 4,101
Interest expense 11,018 10,570
----------- ----------
Total expenses 34,551 33,929
----------- ----------
Income from continuing operations before gain on
sale of real estate assets, minority interest
and earnings from unconsolidated entities 5,552 2,646
Gain on sale of real estate assets 22,435 1,708
Minority interest (4,528) (786)
Earnings from unconsolidated entities 406 737
----------- ----------
Income from continuing operations 23,865 4,305
----------- ----------
Discontinued operations, net of minority
interest:
Gain on sale of real estate assets - 957
Income from operations - 323
----------- ----------
Income from discontinued operations - 1,280
----------- ----------
Net income 23,865 5,585
Preferred stock dividends (1,663) (1,664)
----------- ----------
Net income available to common shareholders $22,202 $3,921
=========== ==========
Basic earnings per share:
Income from continuing operations $1.34 $0.16
Income from discontinued operations - 0.07
----------- ----------
Net income $1.34 $0.23
=========== ==========
Diluted earnings per share:
Income from continuing operations $1.25 $0.16
Income from discontinued operations - 0.07
----------- ----------
Net income $1.25 $0.23
=========== ==========
Basic weighted average shares outstanding 16,590 16,847
=========== ==========
Diluted weighted average shares outstanding 18,553 16,889
=========== ==========
COMPREHENSIVE INCOME
Net income $23,865 $5,585
Other comprehensive income :
Unrealized (loss) gain on interest rate
swaps (223) 554
----------- ----------
Comprehensive income $23,642 $6,139
=========== ==========
RAMCO-GERSHENSON PROPERTIES TRUST
CALCULATION OF FUNDS FROM OPERATIONS (1)
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
------------------
2007 2006
--------- --------
Net Income $23,865 $5,585
Add:
Depreciation and amortization expense 8,962 8,665
Minority interest in partnership:
Continuing operations 4,503 786
Discontinued operations - 57
Less:
Gain on sale of depreciable real estate (2) (22,498) -
Discontinued operations, gain on sale of property,
net of minority interest - (957)
--------- --------
Funds from operations 14,832 14,136
Less:
Series B Preferred Stock dividend (594) (594)
--------- --------
Funds from operations available to common
shareholders $14,238 $13,542
========= ========
Weighted average equivalent shares outstanding,
diluted 21,474 21,707
========= ========
Funds from operations available for common
shareholders, per diluted share $0.66 $0.62
========= ========
(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) Excludes loss on sale of undepreciated land of $63 in 2007 and
gain on sale of undepreciated land of $1,708 in 2006.
RAMCO-GERSHENSON PROPERTIES TRUST
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
March 31, December 31,
2007 2006
----------- ------------
(Unaudited)
ASSETS
Investment in real estate, net $886,537 $897,975
Cash and cash equivalents 9,483 11,550
Restricted cash 8,407 7,772
Accounts receivable, net 35,104 33,692
Equity investments in and advances to
unconsolidated entities 71,403 75,824
Other assets, net 36,652 38,057
----------- ------------
Total Assets $1,047,586 $1,064,870
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgages and notes payable $640,763 $676,225
Accounts payable and accrued expenses 26,989 26,424
Distributions payable 10,684 10,391
Capital lease obligation 7,623 7,682
----------- ------------
Total Liabilities 686,059 720,722
Minority Interest 42,699 39,565
SHAREHOLDERS' EQUITY
Preferred Shares of Beneficial Interest,
par value $0.01, 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
as of March 31, 2007 and December 31,
2006, 1,888 outstanding as of March 31,
2007 and December 31, 2006, liquidation
value of $53,808 as of March 31, 2007
and December 31, 2006 51,714 51,714
Common Shares of Beneficial Interest, par
value $0.01, 45,000 shares authorized;
16,601 and 16,580 issued and outstanding
as of March 31, 2007 and December 31,
2006, respectively 166 166
Additional paid-in capital 335,674 335,738
Accumulated other comprehensive income 24 247
Cumulative distributions in excess of net
income (92,554) (107,086)
----------- ------------
Total Shareholders' Equity 318,828 304,583
----------- ------------
Total Liabilities and Shareholders'
Equity $1,047,586 $1,064,870
=========== ============
CONTACT: Ramco-Gershenson Properties Trust
Dennis Gershenson, President & CEO, 248-350-9900
or
Richard Smith, CFO, 248-350-9900
Fax - 248-350-9925