Investor Presentation Fall 2014 31500 Northwestern Highway, Suite 300 Farmington Hills, Michigan 48334 248.350.9900 www.rgpt.com
Table of Contents A. Company Overview and Strategy B. Strategic Acquisitions – Driving Quality and Growth C. Value-Add Redevelopment and Development D. High-Quality Shopping Center Portfolio E. Fortified Balance Sheet F. Investment Highlights Nagawaukee Center, Delafield, Wisconsin 2
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 in 14 states valued at approximately $2.4 billion. The Company’s shopping centers serve the everyday needs of the consumer and 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, Kohl’s, and Stein Mart. The Shops on Lane Avenue - Columbus, Ohio Ramco- Gershenson’s centers include on average four national anchors, which often feature the trade area’s leading grocer, including Whole Foods, Publix, and Kroger, that generate average annual sales of approximately $490 per square foot. The Company maintains a balance sheet with an investment grade profile and well-balanced capital structure, with ample liquidity and access to capital, to support its growth initiatives highlighted by a net debt to EBITDA ratio of 6.3X. Troy Marketplace - Troy, Michigan 3
Committed to Building Shareholder Value The Company’s primary goal is to build value for its shareholders. Over the last five years Ramco- Gershenson’s track record of performance has delivered to its shareholders a total return on their investment of 252%. For the past three years the Company has grown Woodbury Lakes - Woodbury, Minnesota funds from operations (FFO) 7.8% on average while increasing its dividend by an average of 7.4%. Ramco-Gershenson will continue to seek out attractive investment opportunities that drive the value of its portfolio while remaining judicious allocators of capital on behalf of its shareholders. Front Range Village - Fort Collins, Colorado 4
RPT’s Three -Year Business Plan Ramco-Gershenson is executing on a three-year business model, which is delivering growth in earnings and net asset value. The plan includes a measured acquisition strategy focused on high-quality, multi-anchored shopping centers in desirable metropolitan markets where the Company sees the opportunity to add value for its shareholders. RPT’s acquisitions in 2014 have totaled approximately $320 million. The plan also involves executing on a robust (re)development program including expansions, Town & Country Crossing - Town & Country, Missouri reanchorings, and lease-up of vacant space, which will produce average incremental returns on investment of 11% supplementing core earnings growth over the next several years. Additionally, the plan is focused on the pro-active management of a high-quality shopping center portfolio positioning the Company to deliver above average same- center NOI growth of 3%-4% for the foreseeable future. Parkway Shops - Jacksonville, Florida 5
Strategic Acquisitions- Driving Growth and Quality Transformative Acquisitions • Recent Transactions • Front Range Village • • Buttermilk Towne Center Woodbury Lakes • Bridgewater Falls • Deerfield Towne Center • Portfolio Diversification • Kohl’s, Nagawaukee Center, Delafield, Wisconsin Street View, Woodbury Lakes – Woodbury, MN 6
Transformative Acquisitions Over the last three and a half years the Company has transformed its portfolio through strategic acquisitions and non-core dispositions driving portfolio quality. Troy Marketplace, Troy, MI Nagawaukee Center, Milwaukee, WI Dispositions (part of 12 property portfolio) Acquisitions TRANSACTIONS 18 Dispositions 31Acquisitions 2.2 million square feet TOTAL GLA 8.3 million square feet $10.19 $13.82 AVG. RENT psf AVG. HH INCOME $62,000 $81,000 147,000 POPULATION 173,000 Deer Creek Deerfield Towne Center St. Louis, MO Cincinnati, OH 7
Recent Transactions Since December of 2013, the Company has purchased five shopping centers in targeted metropolitan markets valued at approximately $417 million, totaling 2.5 million square feet. Minnesota #16 MSA Woodbury Lakes – Woodbury, MN Deerfield Towne Center – Mason, OH Cincinnati Denver #28 MSA #21 MSA Bridgewater Falls - Hamilton, OH Buttermilk Towne Center – Crescent Front Range Village – Fort Collins, CO Springs, KY 8
Front Range Village – Denver MSA Property Highlights Trade Area Dynamics Dynamic multi-anchored, mixed-use community shopping • Quality of life profile with average household Incomes of • center encompassing approximately 810,000 square feet. approximately $86,000 (3 miles) and $77,000 (5 miles). Best-in-class tenant mix featuring necessity and specialty • retailers anchored by Target (shadow), Lowe’s (shadow) Population of 57,000 (3 miles) and 125,000 (5 miles) is • Sprouts Farmers Market, DSW, and Sports Authority, and is expected to grow 8% over the next five years. tenanted by other top tier national retailers such as ULTA Strategically located on Harmony Road, one mile west of • Beauty, and Cost Plus World Market. the I-25 Expressway Interchange. Includes 78,000 square feet of office space tenanted by • Microsoft, CA Technologies, among others. Home to the Acquisition enhances the Company’s presence in the • Fort Collins Public Library, which draws 366,000 visitors each Denver area, the Company’s fourth largest market. year. 9
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 will also • contribute to NOI growth. 10
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. 11
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. 12
Woodbury Lakes – Minnesota MSA Property Highlights Trade Area Dynamics Affluent Minneapolis – St. Paul trade area with average • Premier lifestyle shopping center encompassing 366,000 • household Incomes of approximately $102,000 (3 miles) and square feet marks RPT’s entrance into the Minneapolis -St. $96,000 (5 miles) and an unemployment rate of only 4.1%. 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. 13
Woodbury Lakes – Value Enhancement Expansion, Reanchoring, and/or Releasing Future Value-Add Redevelopment RPT plans to capitalize on high retailer demand by • expanding its entertainment and restaurant components. The Company is already finalizing a number of new leases • at above average market rents with national retailers to fill vacancies at this 89% leased shopping center. Woodbury Lakes sits adjacent to the “City Place”, State • Farm’s 100 acre mixed -use site, slated to include office, limited retail, hotel, and medical uses. 14
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