Maryland | 1-10093 | 13-6908486 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
31500 Northwestern Highway, Suite 300, Farmington Hills, Michigan | 48334 | |||
(Address of principal executive offices) | (Zip Code) |
(d) | Exhibits |
RAMCO-GERSHENSON PROPERTIES TRUST | |||
Date: | October 21, 2014 | By:/s/ GREGORY R. ANDREWS | |
Gregory R. Andrews | |||
Chief Financial Officer and Secretary |
99.1 | Press release of Ramco-Gershenson Properties Trust dated October 21, 2014. |
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• | Reported Operating Funds from Operations (“Operating FFO”) of $0.32 per diluted share, compared to $0.30 for the comparable period in 2013. |
• | Increased same-center net operating income (“NOI”) by 3.3%. |
• | Acquired four centers in the metropolitan markets of Cincinnati, Minneapolis-St. Paul, and Fort Collins comprising 1.5 million square feet for $322.2 million. |
• | Ended the quarter with core portfolio leased occupancy of 95.4%. |
• | Operating FFO of $27.2 million, or $0.32 per diluted share, compared to $20.9 million or $0.30 per diluted share for the same period in 2013. |
• | Funds from Operations (“FFO”) of $26.0 million, or $0.31 per diluted share, compared to $20.8 million, or $0.29 per diluted share for the same period in 2013. |
• | Net income available to common shareholders of $4.3 million, or $0.06 per diluted share, compared to $3.7 million, or $0.06 per diluted share for the same period in 2013. |
• | Operating FFO of $74.4 million, or $0.93 per diluted share, compared to $60.0 million, or $0.89 per diluted share for the same period in 2013. |
• | FFO of $71.9 million, or $0.90 per diluted share, compared to $59.2 million, or $0.88 per diluted share for the same period in 2013. |
• | Net income available to common shareholders of $4.4 million, or $0.06 per diluted share, compared to $10.7 million, or $0.18 per diluted share for the same period in 2013. |
• | Same-center NOI growth of 3.3%. |
• | Core portfolio leased occupancy of 95.4% and physical occupancy of 94.3%. |
• | Total portfolio leased occupancy of 94.8% and physical occupancy of 93.9%. |
• | Signed 83 leases encompassing approximately 0.4 million square feet at comparable rental growth of 6.9%, including 54 renewals totaling approximately 0.2 million square feet at comparable rental growth of 6.9%. |
• | Net debt to total market capitalization of 39.1%. |
• | Net debt to EBITDA of 6.1x, interest coverage of 4.1x, and fixed charge coverage of 3.1x. |
• | Weighted average term of debt to maturity of 6.1 years. |
• | Front Range Village, in Fort Collins, Colorado, encompasses approximately 810,000 square feet (459,000 square feet owned by the Company) and is anchored by Target (shadow), Lowe's (shadow), Sprouts Market, Sports Authority, Cost Plus, DSW, ULTA Beauty, Toys/Babies 'R Us, Staples, and Charming Charlie. |
• | Buttermilk Towne Center, in Crescent Springs, Kentucky (Cincinnati MSA), encompasses 278,000 square feet and is anchored by Home Depot (ground lease), Field & Stream (Dick's Sporting Goods), LA Fitness, and Remke Markets (upscale regional grocer). |
• | Woodbury Lakes, in Woodbury, Minnesota (Minneapolis MSA), encompasses approximately 366,000 square feet (305,000 square feet owned by the Company) and is anchored by Trader Joe’s (shadow anchor), buybuy Baby, DSW, H&M, The Gap, Charming Charlie, and Michaels. |
• | Bridgewater Falls, in Hamilton, Ohio (Cincinnati, MSA), encompasses approximately 630,000 square feet (504,000 square feet owned by the Company) and is anchored by Target (shadow anchor), JC Penney (land lease), Dick’s Sporting Goods, TJ Maxx, Old Navy, Michaels, PetSmart, and Bed, Bath & Beyond. |
RAMCO-GERSHENSON PROPERTIES TRUST | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands, except per share amounts) | |||||||
September 30, 2014 | December 31, 2013 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Income producing properties, at cost: | |||||||
Land | $ | 344,236 | $ | 284,686 | |||
Buildings and improvements | 1,590,448 | 1,340,531 | |||||
Less accumulated depreciation and amortization | (276,197 | ) | (253,292 | ) | |||
Income producing properties, net | 1,658,487 | 1,371,925 | |||||
Construction in progress and land available for development or sale | 87,254 | 101,974 | |||||
Real estate held for sale | 10,786 | — | |||||
Net real estate | 1,756,527 | 1,473,899 | |||||
Equity investments in unconsolidated joint ventures | 28,564 | 30,931 | |||||
Cash and cash equivalents | 11,826 | 5,795 | |||||
Restricted cash | 4,919 | 3,454 | |||||
Accounts receivable (net of allowance for doubtful accounts of $2,441 and $2,351 as of September 30, 2014 and December 31, 2013, respectively) | 11,601 | 9,648 | |||||
Other assets, net | 174,483 | 128,521 | |||||
TOTAL ASSETS | $ | 1,987,920 | $ | 1,652,248 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Notes payable: | |||||||
Senior unsecured notes payable | $ | 420,000 | $ | 365,000 | |||
Mortgages payable | 365,049 | 333,049 | |||||
Unsecured revolving credit facility | 120,000 | 27,000 | |||||
Junior subordinated notes | 28,125 | 28,125 | |||||
Total notes payable | 933,174 | 753,174 | |||||
Capital lease obligation | 1,887 | 5,686 | |||||
Accounts payable and accrued expenses | 41,471 | 32,026 | |||||
Other liabilities | 63,811 | 48,593 | |||||
Distributions payable | 17,868 | 14,809 | |||||
TOTAL LIABILITIES | 1,058,211 | 854,288 | |||||
Commitments and Contingencies | |||||||
Ramco-Gershenson Properties Trust ("RPT") Shareholders' Equity: | |||||||
Preferred shares, $0.01 par, 2,000 shares authorized: 7.25% Series D Cumulative Convertible Perpetual Preferred Shares, (stated at liquidation preference $50 per share), 2,000 shares issued and outstanding as of September 30, 2014 and December 31, 2013 | $ | 100,000 | $ | 100,000 | |||
Common shares of beneficial interest, $0.01 par, 120,000 shares authorized, 77,563 and 66,669 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively | 776 | 667 | |||||
Additional paid-in capital | 1,129,907 | 959,183 | |||||
Accumulated distributions in excess of net income | (327,006 | ) | (289,837 | ) | |||
Accumulated other comprehensive (loss) income | (727 | ) | 84 | ||||
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO RPT | 902,950 | 770,097 | |||||
Noncontrolling interest | 26,759 | 27,863 | |||||
TOTAL SHAREHOLDERS' EQUITY | 929,709 | 797,960 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,987,920 | $ | 1,652,248 |
RAMCO-GERSHENSON PROPERTIES TRUST | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
REVENUE | |||||||||||||||
Minimum rent | $ | 40,735 | $ | 33,043 | $ | 114,056 | $ | 89,277 | |||||||
Percentage rent | 54 | 85 | 207 | 200 | |||||||||||
Recovery income from tenants | 12,725 | 10,158 | 36,829 | 28,158 | |||||||||||
Other property income | 1,047 | 1,560 | 2,586 | 2,574 | |||||||||||
Management and other fee income | 582 | 565 | 1,528 | 1,842 | |||||||||||
TOTAL REVENUE | 55,143 | 45,411 | 155,206 | 122,051 | |||||||||||
EXPENSES | |||||||||||||||
Real estate taxes | 7,217 | 6,351 | 21,931 | 16,685 | |||||||||||
Recoverable operating expense | 6,440 | 4,825 | 18,338 | 13,663 | |||||||||||
Other non-recoverable operating expense | 942 | 668 | 2,626 | 2,135 | |||||||||||
Depreciation and amortization | 19,178 | 15,094 | 60,577 | 40,422 | |||||||||||
Acquisition costs | 1,189 | 103 | 1,722 | 784 | |||||||||||
General and administrative expense | 5,395 | 5,260 | 16,095 | 15,713 | |||||||||||
TOTAL EXPENSES | 40,361 | 32,301 | 121,289 | 89,402 | |||||||||||
OPERATING INCOME | 14,782 | 13,110 | 33,917 | 32,649 | |||||||||||
OTHER INCOME AND EXPENSES | |||||||||||||||
Other expense, net | (243 | ) | (400 | ) | (615 | ) | (716 | ) | |||||||
Gain (loss) on sale of real estate | 258 | (13 | ) | 2,930 | 3,901 | ||||||||||
Earnings (loss) from unconsolidated joint ventures | 455 | 387 | (336 | ) | (5,027 | ) | |||||||||
Interest expense | (8,645 | ) | (7,915 | ) | (23,876 | ) | (21,284 | ) | |||||||
Amortization of deferred financing fees | (342 | ) | (382 | ) | (1,115 | ) | (1,069 | ) | |||||||
Deferred gain recognized on real estate | — | — | 117 | 5,282 | |||||||||||
Loss on extinguishment of debt | — | — | (860 | ) | — | ||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE TAX | 6,265 | 4,787 | 10,162 | 13,736 | |||||||||||
Income tax (provision) benefit | (2 | ) | 29 | (18 | ) | (1 | ) | ||||||||
INCOME FROM CONTINUING OPERATIONS | 6,263 | 4,816 | 10,144 | 13,735 | |||||||||||
DISCONTINUED OPERATIONS | |||||||||||||||
Gain on sale of real estate | — | 657 | — | 2,194 | |||||||||||
Income from discontinued operations | — | 242 | — | 842 | |||||||||||
INCOME FROM DISCONTINUED OPERATIONS | — | 899 | — | 3,036 | |||||||||||
NET INCOME | 6,263 | 5,715 | 10,144 | 16,771 | |||||||||||
Net income attributable to noncontrolling partner interest | (180 | ) | (201 | ) | (303 | ) | (634 | ) | |||||||
NET INCOME ATTRIBUTABLE TO RPT | 6,083 | 5,514 | 9,841 | 16,137 | |||||||||||
Preferred share dividends | (1,813 | ) | (1,813 | ) | (5,438 | ) | (5,438 | ) | |||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 4,270 | $ | 3,701 | $ | 4,403 | $ | 10,699 | |||||||
EARNINGS PER COMMON SHARE, BASIC | |||||||||||||||
Continuing operations | $ | 0.06 | $ | 0.05 | $ | 0.06 | $ | 0.13 | |||||||
Discontinued operations | — | 0.01 | — | 0.05 | |||||||||||
$ | 0.06 | $ | 0.06 | $ | 0.06 | $ | 0.18 | ||||||||
EARNINGS PER COMMON SHARE, DILUTED | |||||||||||||||
Continuing operations | $ | 0.06 | $ | 0.05 | $ | 0.06 | $ | 0.13 | |||||||
Discontinued operations | — | 0.01 | — | 0.05 | |||||||||||
$ | 0.06 | $ | 0.06 | $ | 0.06 | $ | 0.18 | ||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||||||||||||||
Basic | 74,840 | 61,102 | 70,283 | 57,626 | |||||||||||
Diluted | 75,080 | 61,572 | 70,520 | 58,097 |
RAMCO-GERSHENSON PROPERTIES TRUST | ||||||||||||||||
FUNDS FROM OPERATIONS | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net income available to common shareholders | $ | 4,270 | $ | 3,701 | $ | 4,403 | $ | 10,699 | ||||||||
Adjustments: | ||||||||||||||||
Rental property depreciation and amortization expense | 19,106 | 15,088 | 60,252 | 40,514 | ||||||||||||
Pro-rata share of real estate depreciation from unconsolidated joint ventures | 679 | 690 | 4,123 | 2,967 | ||||||||||||
Gain on sale of depreciable real estate | — | (657 | ) | (2,466 | ) | (2,194 | ) | |||||||||
Loss on sale of joint venture depreciable real estate (1) | — | — | — | 6,454 | ||||||||||||
Deferred gain recognized on real estate | — | — | (117 | ) | (5,282 | ) | ||||||||||
Noncontrolling interest in Operating Partnership (2) | 180 | 201 | 303 | 634 | ||||||||||||
Subtotal | 24,235 | 19,023 | 66,498 | 53,792 | ||||||||||||
Add preferred share dividends (assumes if converted) | 1,813 | 1,813 | 5,438 | 5,438 | ||||||||||||
FFO | $ | 26,048 | $ | 20,836 | $ | 71,936 | $ | 59,230 | ||||||||
Loss on extinguishment of debt | — | — | 860 | — | ||||||||||||
Gain on extinguishment of joint venture debt (1) | — | — | (106 | ) | — | |||||||||||
Acquisition costs | 1,189 | 103 | 1,722 | 784 | ||||||||||||
Operating FFO | $ | 27,237 | $ | 20,939 | $ | 74,412 | $ | 60,014 | ||||||||
Weighted average common shares | 74,840 | 61,102 | 70,283 | 57,626 | ||||||||||||
Shares issuable upon conversion of Operating Partnership Units (2) | 2,250 | 2,253 | 2,252 | 2,259 | ||||||||||||
Dilutive effect of securities | 240 | 470 | 237 | 471 | ||||||||||||
Shares issuable upon conversion of preferred shares | 7,005 | 6,958 | 7,005 | 6,958 | ||||||||||||
Weighted average equivalent shares outstanding, diluted | 84,335 | 70,783 | 79,777 | 67,314 | ||||||||||||
FFO, per diluted share (3) | $ | 0.31 | $ | 0.29 | $ | 0.90 | $ | 0.88 | ||||||||
Operating FFO, per diluted share (3) | $ | 0.32 | $ | 0.30 | $ | 0.93 | $ | 0.89 | ||||||||
Dividend per common share | $0.20000 | $0.18750 | $ | 0.57500 | $ | 0.52400 | ||||||||||
Payout ratio - FFO | 64.5 | % | 64.7 | % | 63.9 | % | 59.5 | % | ||||||||
(1) | Amount included in earnings (loss) from unconsolidated joint ventures. |
(2) | The total non-controlling interest reflects OP units convertible 1:1 into common shares. |