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: | April 21, 2015 | By:/s/ GREGORY R. ANDREWS | |
Gregory R. Andrews | |||
Chief Financial Officer and Secretary |
99.1 | Press release of Ramco-Gershenson Properties Trust dated April 21, 2015. |
Exhibit 99.1 |
• | Reported Operating Funds from Operations (“Operating FFO”) of $0.36 per diluted share, compared to $0.30 for the comparable period in 2014. |
• | Recorded a gain on sale of $3.2 million, or $0.04 per diluted share, for the sale of land at Gaines Marketplace in Gaines Township, Michigan. |
• | Commenced two new redevelopment projects including the planned addition of Nordstrom Rack at West Oaks in Novi, Michigan. |
• | Increased same-center net operating income (“NOI”) by 3.3%. |
• | Ended the quarter with core portfolio leased occupancy of 95.1%. |
• | Operating FFO of $31.3 million, or $0.36 per diluted share, compared to $23.0 million, or $0.30 per diluted share for the same period in 2014. |
• | FFO of $28.7 million, or $0.33 per diluted share, compared to $23.0 million, or $0.30 per diluted share for the same period in 2014. |
• | Net income available to common shareholders of $7.9 million, or $0.10 per diluted share, compared to $0.9 million, or $0.01 per diluted share for the same period in 2014. |
• | Same-center NOI growth of 3.3%. |
• | Core portfolio leased occupancy of 95.1% and physical occupancy of 94.5%. |
• | Signed 82 leases encompassing approximately 564,248 square feet at comparable rental growth of 8.1%, including 59 renewals totaling approximately 384,607 square feet at comparable rental growth of 7.4%. |
• | Net debt to total market capitalization of 35.2%. |
• | Net debt to EBITDA of 5.9x, interest coverage of 4.1x, and fixed charge coverage of 3.2x. |
• | Weighted average debt maturity term of 6.3 years. |
• | West Oaks, a 100% leased, 300,000 square foot market dominant shopping center located in the affluent community of Novi, Michigan, is being repositioned to accommodate a new 33,000 square foot Nordstrom Rack. The redevelopment includes the right-sizing of Gander Mountain, the relocation of David’s Bridal, and the construction of an additional 15,000 square feet of leasable space to accommodate the Nordstrom Rack store. |
• | Spring Meadows Place, a 93% leased, 260,000 square foot, multi-anchored shopping center located in Holland, Ohio, is being retenanted with a new 15,000 square foot DSW and a 9,500 square foot Pier 1 Imports. The Company is relocating two national small shop tenants and filling existing vacant space to accommodate the two new stores. Upon completion, the center will be over 95% occupied. |
RAMCO-GERSHENSON PROPERTIES TRUST | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands, except per share amounts) | |||||||
March 31, 2015 | December 31, 2014 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Income producing properties, at cost: | |||||||
Land | $ | 345,473 | $ | 341,388 | |||
Buildings and improvements | 1,602,666 | 1,592,644 | |||||
Less accumulated depreciation and amortization | (299,840 | ) | (287,177 | ) | |||
Income producing properties, net | 1,648,299 | 1,646,855 | |||||
Construction in progress and land available for development or sale | 60,152 | 74,655 | |||||
Real estate held for sale | 7,251 | — | |||||
Net real estate | 1,715,702 | 1,721,510 | |||||
Equity investments in unconsolidated joint ventures | 22,512 | 28,733 | |||||
Cash and cash equivalents | 12,966 | 9,335 | |||||
Restricted cash | 10,452 | 8,163 | |||||
Accounts receivable (net of allowance for doubtful accounts of $2,370 and $2,292 as of March 31, 2015 and December 31, 2014, respectively) | 13,192 | 11,997 | |||||
Acquired lease intangibles, net | 73,011 | 77,045 | |||||
Other assets, net | 88,153 | 91,596 | |||||
TOTAL ASSETS | $ | 1,935,988 | $ | 1,948,379 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Notes payable | 910,128 | 921,705 | |||||
Capital lease obligation | 1,148 | 1,828 | |||||
Accounts payable and accrued expenses | 37,217 | 44,232 | |||||
Acquired lease intangibles, net | 53,031 | 54,278 | |||||
Other liabilities | 10,801 | 10,106 | |||||
Distributions payable | 18,001 | 17,951 | |||||
TOTAL LIABILITIES | 1,030,326 | 1,050,100 | |||||
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 March 31, 2015 and December 31, 2014 | $ | 100,000 | $ | 100,000 | |||
Common shares of beneficial interest, $0.01 par, 120,000 shares authorized, 78,596 and 77,573 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively | 786 | 776 | |||||
Additional paid-in capital | 1,147,073 | 1,130,262 | |||||
Accumulated distributions in excess of net income | (364,515 | ) | (356,715 | ) | |||
Accumulated other comprehensive loss | (3,390 | ) | (1,966 | ) | |||
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO RPT | 879,954 | 872,357 | |||||
Noncontrolling interest | 25,708 | 25,922 | |||||
TOTAL SHAREHOLDERS' EQUITY | 905,662 | 898,279 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,935,988 | $ | 1,948,379 |
RAMCO-GERSHENSON PROPERTIES TRUST | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(In thousands, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
REVENUE | ||||||||
Minimum rent | $ | 43,351 | $ | 36,267 | ||||
Percentage rent | 353 | 148 | ||||||
Recovery income from tenants | 14,322 | 12,247 | ||||||
Other property income | 859 | 961 | ||||||
Management and other fee income | 532 | 510 | ||||||
TOTAL REVENUE | 59,417 | 50,133 | ||||||
EXPENSES | ||||||||
Real estate taxes | 8,995 | 7,367 | ||||||
Recoverable operating expense | 7,278 | 6,159 | ||||||
Other non-recoverable operating expense | 713 | 849 | ||||||
Depreciation and amortization | 20,363 | 17,741 | ||||||
Acquisition costs | 42 | 82 | ||||||
General and administrative expense | 4,874 | 5,532 | ||||||
Provision for impairment | 2,521 | — | ||||||
TOTAL EXPENSES | 44,786 | 37,730 | ||||||
OPERATING INCOME | 14,631 | 12,403 | ||||||
OTHER INCOME AND EXPENSES | ||||||||
Other expense, net | (218 | ) | (133 | ) | ||||
Gain on sale of real estate | 3,196 | — | ||||||
Earnings (loss) from unconsolidated joint ventures | 2,660 | (1,607 | ) | |||||
Interest expense | (9,969 | ) | (7,599 | ) | ||||
Amortization of deferred financing fees | (334 | ) | (403 | ) | ||||
Deferred gain recognized on real estate | — | 117 | ||||||
INCOME BEFORE TAX | 9,966 | 2,778 | ||||||
Income tax provision | (22 | ) | (17 | ) | ||||
NET INCOME | 9,944 | 2,761 | ||||||
Net income attributable to noncontrolling partner interest | (277 | ) | (89 | ) | ||||
NET INCOME ATTRIBUTABLE TO RPT | 9,667 | 2,672 | ||||||
Preferred share dividends | (1,812 | ) | (1,812 | ) | ||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 7,855 | $ | 860 | ||||
EARNINGS PER COMMON SHARE | ||||||||
Basic | $ | 0.10 | $ | 0.01 | ||||
Diluted | 0.10 | 0.01 | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||||||
Basic | 77,925 | 67,070 | ||||||
Diluted | 78,128 | 67,314 |
RAMCO-GERSHENSON PROPERTIES TRUST | ||||||||
FUNDS FROM OPERATIONS | ||||||||
(In thousands, except per share data) | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Net income available to common shareholders | $ | 7,855 | $ | 860 | ||||
Adjustments: | ||||||||
Rental property depreciation and amortization expense | 20,327 | 17,614 | ||||||
Pro-rata share of real estate depreciation from unconsolidated joint ventures | 696 | 2,763 | ||||||
Gain on sale of joint venture depreciable real estate (1) | (2,239 | ) | — | |||||
Deferred gain recognized on real estate | — | (117 | ) | |||||
Noncontrolling interest in Operating Partnership (2) | 277 | 89 | ||||||
Subtotal | 26,916 | 21,209 | ||||||
Add preferred share dividends (if converted) | 1,812 | 1,812 | ||||||
FFO | $ | 28,728 | $ | 23,021 | ||||
Provision for impairment on land available for development or sale | 2,521 | — | ||||||
Gain on extinguishment of joint venture debt (1) | — | (106 | ) | |||||
Acquisition costs | 42 | 82 | ||||||
Operating FFO | $ | 31,291 | $ | 22,997 | ||||
Weighted average common shares | 77,925 | 67,070 | ||||||
Shares issuable upon conversion of Operating Partnership Units (2) | 2,247 | 2,252 | ||||||
Dilutive effect of securities | 203 | 244 | ||||||
Subtotal | 80,375 | 69,566 | ||||||
Shares issuable upon conversion of preferred shares | 7,033 | 6,940 | ||||||
Weighted average equivalent shares outstanding, diluted | 87,408 | 76,506 | ||||||
FFO, per diluted share (3) | $ | 0.33 | $ | 0.30 | ||||
Operating FFO, per diluted share | $ | 0.36 | $ | 0.30 | ||||
Dividend per common share | $ | 0.2000 | $ | 0.1875 | ||||
Payout ratio - Operating FFO | 55.6 | % | 62.5 | % | ||||
(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. |
(3) | 1Q15 includes $0.04 per share attributable to gain on sale of land at Gaines Marketplace. |