Investor Presentation REITWorld 2014 31500 Northwestern Highway, Suite 300 Farmington Hills, Michigan 48334 248.350.9900 www.rgpt.com
Table of Contents A. RPT Company Overview and Strategy B. Strategic Acquisitions – Driving Growth and Quality C. Value-Add Investments D. High-Quality Shopping Center Portfolio E. Fortified Balance Sheet F. 2014 Accomplishments Woodbury Lakes – Woodbury, Minnesota 2
RPT Company Overview Ramco- Gershenson Properties Trust (“RPT”, “Ramco - Gershenson”, or the “Company”) owns and manages interests in 82 market dominant, multi-anchored community shopping centers valued at approximately $2.4 billion. The Company’s shopping centers are tenanted by best -in-class national and regional retailers, including TJ Maxx, Marshalls, LA Fitness, Bed Bath & Beyond, The Home Depot, Nordstrom Rack, Ross Dress for Less, and Kohl’s. Ramco- Gershenson’s shopping centers include on average four national anchors and often feature a leading grocer, including Whole Foods, Publix, and Kroger, that generate average annual sales of approximately $505 per square foot. The Company maintains a strong balance sheet with an investment grade profile, significant flexibility, and liquidity to support its growth initiatives, highlighted by a net debt to EBITDA ratio of 6.1X. 3
Building Shareholder Value Over the past five years RPT has been the top shopping Center REIT in growing shareholder value. Ramco- Gershenson’s track record of performance has delivered a total return of 252% over the last five years. The Company has grown funds from operations (FFO) an average of 7.8% and increased its dividend by an average of 7.4% over the last three years. Ramco-Gershenson will continue to opportunistically invest its capital in accretive acquisitions as well as redevelopments (currently producing 11% returns) to drive the quality and value of its shopping center portfolio. 4
Strategic Business Plan The Company is focused on investing its capital in high growth opportunities that will drive shareholder value. RPT’s business plan includes an acquisition strategy focused on high-quality, multi-anchored shopping centers each with a value- add component located in its 12 primary metropolitan markets. The Company is actively engaged in executing on a robust pipeline of redevelopments that include expansions, reanchorings, and repositionings at our newly acquired and core portfolio shopping centers. Additionally, the plan is focused on the pro-active management of our high-quality shopping center portfolio which includes driving comparable leasing spreads, leasing existing small tenant vacancies, and replacing underperforming retailers, all of which will deliver above average same-center NOI growth. 5
Focused on Top 12 Metropolitan Markets RPT’s Top Markets Minneapolis – St. Paul #16 RPT’s top 12 metropolitan Milwaukee SE Michigan #39 MSA #14 MSA markets account for nearly 90% of its pro rata annualized Toledo base rents. Denver Chicago #89 MSA #21 MSA #3 MSA These 12 markets are among the largest 40 metro areas in St. Louis the U.S. [1] and have average Cincinnati #19 MSA #28 MSA household incomes of $78,000. Taken together, the 12 MSAs Atlanta are home to 121 Fortune 500 #9 MSA company headquarters and 42.7 million people. Jacksonville #40 MSA RPT’s average metropolitan market would be ranked #26 and home to 3.6 million Tampa Bay #18 MSA people . SE Florida #8 MSA 1 With the exception of Toledo, which is ranked #89. 6
Strategic Acquisitions- Driving Growth and Quality Strategic Acquisitions • Recent Acquisitions/Capital Recycling • Recent Transactions • Front Range Village • Buttermilk Towne Center • Woodbury Lakes • Bridgewater Falls • Deerfield Towne Center • Kohl’s, Nagawaukee Center, Delafield, Wisconsin Front Range Village – Fort Collins, Colorado 7
Strategic Acquisitions/Capital Recycling Over the last three and a half years the Company has transformed its portfolio through strategic acquisitions and non-core dispositions driving portfolio quality. Acquisitions Dispositions Troy Marketplace, Troy, MI Nagawaukee Center, Milwaukee, WI (part of 12 property portfolio) TRANSACTIONS 32 Shopping Centers 20 Shopping Centers 8.7 million square feet TOTAL GLA 2.6 million square feet $14.21 $10.19 AVG. RENT psf $61,000 $81,000 AVG. HH INCOME 152,000 170,000 POPULATION 2 per center 4 per center ANCHORS 128,000 square feet 290,000 square feet AVG. CENTER SIZE Deer Creek Deerfield Towne Center $1.2 billion $164 million TOTAL VALUE St. Louis, MO Cincinnati, OH 8
Recent Acquisitions During the third quarter, the Company invested $322 million in market dominant, multi-anchored shopping centers with significant value-add potential which builds earnings growth and enhances portfolio quality. Minneapolis – St. Paul #16 Woodbury Lakes – Woodbury, MN Denver Cincinnati Front Range Village – Fort Collins, CO #21 MSA #28 MSA Quality Markers Avg. Base Rent, psf of $15.85 Bridgewater Falls - Hamilton, OH Avg. Household Income of $85,500 Buttermilk Towne Center – Crescent Springs, KY 9
Front Range Village – Denver MSA Property Highlights Trade Area Dynamics Quality of life profile with average household incomes of • Dynamic multi-anchored, mixed-use community shopping center • approximately $86,000 (3 miles) and $77,000 (5 miles). encompassing approximately 810,000 square feet. Population of 57,000 (3 miles) and 125,000 (5 miles) is • Best-in-class tenant mix featuring necessity and specialty retailers • expected to grow 8% over the next five years. including Target (shadow), Lowe’s ( shadow,) Toys/Babies R Us, Sprouts Market, DSW, and Sports Authority, as well as other top tier Strategically located on Harmony Road, one mile west of national retailers such as ULTA Beauty, Cost Plus World Market, and • Charming Charlie. the I-25 Expressway Interchange. Home to the Fort Collins Public Library, which draws 366,000 visits Acquisition enhances the Company’s presence in the • • each year. Denver area, the Company’s fourth largest market. 10
Front Range Village – Value Enhancement Expansion, Reanchoring, and/or Releasing Future Value-Add Redevelopment Front Range Village provides the opportunity to develop • an additional 100,000 square feet of retail space, including up to six outparcels, which will be land leased or sold. RPT plans to add at least one mid-box user as well as a • number of in-line destination tenancies including soft line goods, women’s apparel, and restaurants. In-place contractual rent increases of $500,000 over the • next 4 years will also contribute to NOI growth. 11
Buttermilk Towne Center – Cincinnati, MSA Property Highlights Trade Area Dynamics Recently developed destination oriented, multi-anchored • Well-established suburban Cincinnati trade area with • community shopping center encompassing 278,000 average household incomes of approximately $75,000 square feet.t h and a stable population base of 198,000. Exceptional anchor tenants include Home Depot, Field & • Strategically located near the Interstate 71/75 and • Stream (Dick’s), LA Fitness, and Remke Market (upscale Buttermilk Pike Interchange, which caters to a robust regional grocer). daytime population of nearly 122,000 employees within five miles of the shopping center. Complementary in-line tenants including FedEx Office, • Firehouse Subs, Sweet Frog Frozen Yogurt, and Salon • Acquisition is the Company’s third in the Cincinnati Concepts add local appeal and destination draws to the market (the Company’s third largest market). shopping center. 12
Buttermilk Towne Center – Value Enhancement Expansion, Reanchoring, and/or Releasing Future Value-Add Redevelopment Buttermilk Towne Center includes a number of • redevelopment and expansion opportunities that will drive the Company’s initial return on investment and increase future cash flow at the property. RPT plans to construct up to 22,000 square feet of • additional in-line space as well as develop and/or sell up to six out parcels generating additional cash flow and sale proceeds. In-place anchor contractual rent increases will further • drive the initial cap rate at least 50 basis points by 2017. 13
Woodbury Lakes – Woodbury, Minnesota Property Highlights Trade Area Dynamics Affluent Minneapolis – St. Paul trade area with average • Premier community shopping center encompassing • household incomes of approximately $102,000 (3 miles) and 366,000 square feet marks RPT’s entrance into the $96,000 (5 miles) and an unemployment rate of only 4.1%. Minneapolis-St. Paul market. Woodbury Lakes, voted “Best Places to Live” by Forbes and • Traditional community center anchors include Trader • Money magazines, is projected to grow 5% over the next Joe’s (shadow), buybuy Baby, DSW, and Michaels. five years. Exciting specialty tenants, many new to the market, • Prominently positioned just east of Interstate I-94, east of the • include American Eagle, H & M, Victoria’s Secret, I-94 and I-494/I-694 intersection, 25 minutes from downtown PacSun, White House|Black Market, Soma, Express, LOFT, Minneapolis, 15 minutes from downtown St. Paul, and 10 The Gap, and Buckle. minutes from Wisconsin’s western border. 14
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