financial data as of march 31, 2008 building the future · 2020. 2. 28. · ramco-gershenson is a...

Financial Data as of March 31, 2008

Financial Data as of March 31, 2008 Page 0

Building The FutureCorporate PresentationNAREIT Investor ForumJune 2008



Company Overview

• Community shopping center portfolio anchored by leading national anchor tenants including grocery stores and discount department stores

• Geographic concentration in the Midwest, Southeast and Mid-Atlantic United States

• Focused on opportunistic acquisitions, development of new shopping centers and value-added redevelopments

Ramco-Gershenson is a shopping center REIT located in Farmington Hills, Michigan. Our goal is to generate long-term shareholder value through the ownership and management of a premier shopping center portfolio.



Portfolio Summary

89 Shopping Centers in 13 States

• 53.5% Midwest • 41.5% Southeast • 5.0% Mid-Atlantic

19.9 Million Square Feet of GLA • 88 Community Centers • 1 Regional Mall

Same Center Portfolio 94.2% leased

Corporate Office

Regional Office

Portfolio Shopping Centers

New Developments

Canton

Novi

Taylor

Auburn Hills

Madison Heights

224,000 Avg. GLA2.9 Avg. No. of Anchors



Strong Markets

MichiganFloridaOhioGeorgiaIndianaWisconsin

The majority of RPT’s shopping centers are located in metropolitan markets with attractive demographics.

41%31%8%5%3%2%

$78,746$70,343$66,398$84,675$98,576$58,958

195,427153,439176,425138,355159,642309,791

Location Est. Population [1]Est. HH Income[1]% of Base Rent

[1]Source CoStar Group. Numbers represent weighted averages for 5 Mile Trade Area.



Diversified Tenant Mix

• Limited exposure to any single retailer• 82% of base rental revenues from national and

regional tenants

69%13%

18%

National 69%

Regional 13%

Local 18%

Major Tenants:Annualized

Base Rent

% of Company Base Rent Revenues

TJ Maxx/MarshallsPublixHome DepotWal-MartOfficeMaxLinens ‘N Things*KmartJo-Ann

$ 5,660,602$ 4,534,891$ 3,259,492$ 3,232,787$ 3,173,220$ 3,052,262$ 2,717,603$ 2,480,777

3.6%2.9%2.1%2.1%2.0%2.0%1.7%1.6%

*7 total: 4 closing (3 JV, 1 wholly-owned)



Clear Business Strategy

The Company is focused on a dynamic business model to deliver sustainable FFO growth while maintaining a strong balance sheet and attractive dividend.

Experienced Management Team

High Quality Portfolio Generating Stable NOI

Growth

Co-Investment Joint Venture Strategy and Capital

Recycling to Self Fund Business Plan

Sustainable FFO GrowthStrong Balance Sheet

Long-Term Shareholder Value

Robust Development and Redevelopment Pipeline

Generating Attractive Returns and Significant Value



Development Strategy

• Serve the growth needs of metropolitan markets

• Proven development formats driven by needs of the community

• Generate targeted unlevered stabilized returns of between 9% and 10%

Our robust development program is designed to generate attractive returns and create long-term value.



Development Pipeline

Property/Location Project Description

RPT Ownership

%

Projected Stabilization

Date

Stabilized Return on

Cost

Projected Stabilized

NOI Projected

CostCost to

Date

Current Development Projects

On-Balance Sheet Assets

Northpointe Town Center - Jackson, MI 550,000 SF town center project 100% Q4 2010 9% $6.6 $74.2 $1.4

Rossford Pointe - Rossford, OH <100,000 SF mid-box project 100% Q3 2009 10% $0.8 $8.3 $5.6

Total On-Balance Sheet Assets 9% $7.4 [1] $82.5 $6.9

Off-Balance Sheet Assets

Hartland Towne Square - Hartland Twp., MI 500,000 SF power center project 20% Q1 2011 7% $3.9 $52.0 $9.6

Total Off-Balance Sheet Assets 7% $3.9 [1] $52.0 $9.6RPT Share of Total Off-Balance Sheet Assets 7% $0.8 [1] $10.4 $1.9

Proposed Off-Balance Sheet Assets

The Town Center at Aquia - Stafford, VA 725,000 SF mixed-use project 20% Q1 2011 9% $16.9 $189.0 $46.4 [2]

Lakeland II - Lakeland, FL 375,000 SF power center project 20% Q3 2011 9% $5.7 $63.0 $10.6

Total Proposed Off-Balance Sheet Assets 9% $22.5 [1] $252.0 $57.0RPT Share of Total Proposed Off-Balance Sheet Assets 9% $4.5 [1] $50.4 $11.4

RPT Share of Current Developments 9% $12.7 [1] $143.3 $20.3[1] Does not include gains on sales held in TRS or fee revenue.



Development Case Study-RCMP Jacksonville, Florida• Approximately $100.0 million investment in 1.2 million square foot

power/lifestyle center strategically located near Jacksonville International Airport

• Created $40 million of value for shareholders-$2.00 per share

• Earned development, leasing and management fees of approximately $9.5 million

• Projected future share of Tax Incremental Financing of $12 million

• Expected after tax gains on outlot sales of $9.6 million

• Stabilized Net Operating Income of $8.7 million



Hartland Towne Square Hartland, Michigan• 500,000 square foot traditional community center

development to be anchored by a Meijer department store and home improvement superstore

• Bedroom community centrally located between four major business centers

• Part of retail hub with Target and Wal-Mart

• Superior access off newly-constructed US-23/M-59 interchange



Northpointe Towne Center Jackson, Michigan• 550,000 square foot town center development to include

retail, entertainment and office components

• In response to strong retailer demand currently not represented in market at two existing Ramco centers

• Superior access off two expressway interchanges (I-94 an I-127)



The Town Center at Aquia Stafford, Virginia• Transformation of former community shopping center to 725,000 SF

mixed-use complex to include office, specialty retail and entertainment uses on 35 acre site

• High growth corridor, 25 miles south of Washington, D.C., 5 miles south of Quantico

• Superior demographics and excellent access off major expressways

• 100,000 SF Class-A office building, 77% leased with Northrop Grumman as lead tenant

• 14 Screen, 55,000 SF state-of-the-art Regal cinema complex



Lakeland II Lakeland Florida• 375,000 SF community center located adjacent to RPT’s 300,000 SF

Shoppes of Lakeland center anchored by Target, Michaels and Ashley Furniture

• Superior visibility and access from Interstate I-4

• Part of a growing trade area of 230,000 people, expected to increase by 8.0% over the next five years

• Creative vision and execution of development opportunity in response to tenant demand



Redevelopment Strategy

• Since 1996, the Company has spent $137 million for 45 shopping center value-added redevelopments producing an average return on new dollars invested of 11.7%

• Projects designed to improve the credit-quality of the income stream and expand the draw of our centers through broadening of the tenant mix

• Pipeline of 11 active projects: a number of which are at over-performing centers

• Stabilized return target of 12%

Throughout its history, RPT has capitalized on value-added redevelopment opportunities to generate superior returns within its shopping center portfolio.



Redevelopment Pipeline

Property/Location Project Description

RPT Ownership

%

Projected Stabilization

Date

Stabilized Return on

Cost

Projected Stabilized

NOI [1]Projected

CostCost to Date

4/1/08 - 12/31/08 2009 2010

Current Redevelopment Projects

On-Balance Sheet Assets

Oakbrook Square - Flint, MI Adding a 55,000 SF Hobby Lobby, replacing and expanding 32,000 SF mid-box user.

100% Q4 2008 11.6% $0.4 $3.1 $0.4 $2.7 $0.0 $0.0

West Allis - West Allis, WI Relocating existing tenants, adding national soft good retailer and other tenants, building 2 outlots and upgrading façade.

100% Q1 2010 10.0% $1.3 $12.8 $3.7 $2.9 $5.5 $0.6

Holcomb - Roswell, GA Adding proto-type movie theater. 100% Q1 2009 10.9% $0.2 $2.1 $0.1 $1.4 $0.6 $0.0

Southbay - Osprey, FL Adding freestanding drug store, retenanting space and demolishing vacated space.

100% Q3 2009 16.2% $0.1 $0.9 $0.0 $0.5 $0.4 $0.0

Hoover Eleven - Warren, MI Expanding Kroger Supermarket by 12,000 SF. 100% Q2 2009 127.9% $0.1 $0.1 $0.0 $0.1 $0.0 $0.0

Total On-Balance Sheet Assets 11.3% $2.1 $18.9 $4.3 $7.6 $6.5 $0.6

Off-Balance Sheet Assets

Paulding Pavilion - Hiram, GA Replacing and expanding former Publix space with Sports Authority and Staples, adding 4,000 SF outlot building.

20% Q4 2008 10.7% $1.0 $9.1 $5.3 $3.9 $0.0 $0.0

Troy Marketplace - Troy, MI Retenanting 97,000 SF Home Expo with LA Fitness and additional mid-box uses.

30% Q4 2009 23.0% $2.1 $9.3 $4.1 $2.5 $2.7 $0.0

Old Orchard - West Bloomfield, MI Retenanting former Farmer Jack with 37,000 SF Plum Market (gourmet grocery).

30% Q3 2009 12.3% $0.9 $7.1 $2.5 $2.7 $1.9 $0.0

Collins Pointe Plaza - Cartersville, GA Retenanting Winn-Dixie, building additional outlot and small-shop retail space.

20% Q3 2009 15.1% $0.7 $4.7 $0.0 $1.9 $2.8 $0.0

Cocoa Commons - Cocoa Beach, FL Constructing 15,000 SF of additional retail space.

30% Q1 2009 12.4% $0.3 $2.4 $0.7 $1.7 $0.0 $0.0

Market Plaza - Glen Ellyn, IL Adding a 19,849 SF Staples. 20% Q1 2009 16.6% $0.2 $1.4 $0.0 $1.2 $0.3 $0.0

Total Off-Balance Sheet Assets 15.4% $5.2 $34.0 $12.6 $13.7 $7.7 $0.0RPT Share of Total Off-Balance Sheet Assets 15.8% $1.4 $8.7 $3.3 $3.4 $2.0 $0.0

RPT Share of Current Redevelopments 12.7% $3.5 $27.6 $7.5 $11.0 $8.5 $0.6

Estimated Additional Costs



Active Redevelopment-West Allis Madison, Wisconsin

Project Summary:Replacing underperforming regional tenants with national soft goods retailer and other tenants as well as adding two outlot buildings.

Demographics:

3 Mile StatsPopulation: 172,813Avg. H.H. Income: $53,032





Active Redevelopment-Old Orchard West Bloomfield, Michigan

Project Summary:Complete upgrade of existing community shopping center replacing former Farmer Jack space with 37,000 SF Plum Market, an upscale specialty grocer, as well as other popular destination retailers.

Demographics:






Asset Management StrategyWe are committed to generating reliable internal growth by improving existing rental rates and increasing the overall occupancy in our shopping center portfolio.

• Historically have retained over 75% of expiring leases, achieving rental increases of 8-10% over prior rents paid

• Compounded average portfolio rental rate growth of 5% over the last five years

• Superior operating expense recovery ratios of between 98% and 99% annually



Co-Investment Acquisition Strategy

• Leverage equity

• Mitigate risk

• Produce superior returns

Our joint venture acquisition strategy is designed to...



Co-Investment Acquisition Strategy

Joint Venture Capital Structure

Ramco's Equity

$104,306

JV Partner'sEquity

$340,577 Debt

$439,252

The Company has acquired approximately $900,000 million in shopping center assets in four years with an eye for generating improved returns through value-added redevelopment opportunities.

($1,000)$1,000$3,000$5,000$7,000$9,000

$11,000$13,000

Joint Venture Recurring Income

Recurring Fees $940.9 $1,376.6 $2,258.8 $3,257.0

NOI Contribution toFFO

$4,237.2 $5,523.7 $6,608.4 $9,026.1

Actual Actual Actual Forecast

2005 2006 2007 2008

($ in thousands)



Co-Investment Acquisition StrategyThe Shops on Lane Avenue

Upper Arlington, OHAcquired October 2008

After

Before



Meeting Capital RequirementsRamco-Gershenson’s 2008 capital plan is primarily self-funded and will provide ample funds to carry out a strategic business plan that is designed to maximize shareholder value.

34%

30% 36%

46%

33%

21%

SOURCES OF CAPITAL USES OF CAPITAL

1 Contribution of Development Properties $46.02 Sale/Contribution of Core Assets 42.03 Revolving Line of Credit Availability 37.0

Total Sources $125.0 MM

1 Equity Contributions Redevelopment $11.02 Equity Contribution Development 8.03 Equity Contribution JV Acquisitions 5.2

Total Uses $24.2 MM

2113

2

3



Capital Structure($ in thousands)

12/31/07 3/31/08Consensus

NAV

Debt:

Fixed Rate Debt $503,266 $522,183 $522,183

Variable Rate Debt 187,536 169,093 169,093

Total Debt $690,802 $691,276 $691,276

Common Equity:

Share price $21.37 $21.11 $34.32

Common equity $394,692 $392,005 $637,310

OP units 62,375 61,616 100,174

Total Common Equity $457,067 $453,621 $737,484

Total Capitalization $1,147,869 $1,144,897 $1,428,760

Four loans coming due in 2008, the largest is $150 million unsecured revolving credit facility, which the Company plans to extend at its option in December.



Manageable Debt Maturities

Unsecured Revolving Credit Facility, $150.0

Plaza at Delray Mortgage, $43.3

Secured Term Loan, $40.0

Beacon Square Construction Loan, $8.5

Ramco-Gershenson has only four debt instruments coming due in 2008. The largest is our $150 million unsecured revolving line of credit, which at our option will be extended in December.



$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2004 2005 2006 2007 2008

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2004 2005 2006 2007 2008

Secure Dividend2004 2005 2006 2007 2008E

FFO per share $2.07 $2.42 $2.54 $2.56 $2.53

Less Distributions $1.68 $1.75 $1.79 $1.85 $1.85

Retained FFO $0.39 $0.67 $0.75 $0.71 $0.68

FFO Payout Ratio 81.2% 72.4% 70.6% 72.2% 73.1%

FFO PayoutFFO Payout

2004 2005 2006 2007 2008E

FAD per share $1.99 $2.17 $2.29 $2.41 $2.43

Less Distributions $1.68 $1.75 $1.79 $1.85 $1.85

Retained FAD $0.31 $0.42 $0.50 $0.56 $0.58

FAD Payout Ratio 84.4% 80.8% 78.1% 76.8% 76.1%

FAD PayoutFAD Payout



Outstanding Investment

• Exceptional assets in desirable markets

• Well-defined business plan with minimal risk

• Secure dividend

• Multiple discount to peer group

financial data as of march 31, 2008 building the future · 2020. 2. 28. · ramco-gershenson is a...

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