INVESTOR PRESENTATION Fall 2015
MISSION STATEMENT AND GUIDING PRINCIPLES MISSION STATEMENT AND GUIDING PRINCIPLES Ramco-Gershenson Properties Trust’s mission is to grow shareholder returns and generate sustainable dividends through investments in large, multi-anchored, urban-oriented shopping centers primarily in the central United States that offer value and long-term growth potential. The Company is guided by the following principles: Strong operating fundamentals. Solid redevelopment pipeline to generate internal growth. Prudent capital allocation. Sound capital structure. NYSE: RPT 2
CORPORATE OVERVIEW & STRATEGY
CORPORATE OVERVIEW AND STRATEGY CORPORATE OVERVIEW AND STRATEGY 79 95.3% PROPERTIES LEASED OCCUPANCY $2.3 Billion $72.2 Million TOTAL MARKET CAPITALIZATION VALUE-ADD PROJECTS We invest in large, multi-anchored large, multi-anchored, urban-oriented , urban-oriented shopping centers tenanted by best-in-class retailers in the Country’s leading MSAs. We are focused on growing growing NOI and NAV NOI and NAV through a streamlined-business plan. We promote operating operating excell excellence ence that drives strong, consistent financial results to increase long-term value and further grow our dividend. We manage a conservative capital structure conservative capital structure to maintain flexibility and liquidity through all economic cycles. NYSE: RPT 4 Note: As of June 30, 2015.
FOCUSED ON 10 MAJOR METROPOLITAN MARKETS FOCUSED ON 10 MAJOR METROPOLITAN MARKETS Average MSA % of Household Location Rank ABR Income SE Michigan 14 24% $79,000 SE Florida 8 11% $60,000 Cincinnati 28 9% $77,000 Denver 21 8% $108,000 St. Louis 19 6% $98,000 Jacksonville 40 6% $64,000 Milwaukee 39 5% $79,000 Chicago 3 4% $92,000 Atlanta 9 4% $87,000 Minn. ‐ St. Paul 16 3% $96,000 Total/Average 81% $84,000 NYSE: RPT 5
FOCUSED ON LARGE, MULTI-ANCHORED CENTERS FOCUSED ON LARGE, MULTI-ANCHORED CENTERS RPT’s 20 Largest Centers = 50% of Total ABR LARGE, LARGE, 445,000 Square Feet [1]; ABR psf of $15.85 MARKET DOMINANT MARKET DOMINANT Average 7 Anchors per Center and over COMMUNITY CENTERS COMMUNITY CENTERS 100,000 Square Feet of Small Shop Space 15 of RPT’s top 20 properties RECENTLY ACQUIRED RECENTLY ACQUIRED acquired within the last five years Average Household Income of $84,000 STRONG MARKETS STRONG MARKETS Average Population of 170,000 STABLE STABLE 86% National/Regional INCOME STREAM INCOME STREAM Tenants NYSE: RPT 6 [1] Includes shadow anchors, without shadow anchors average size is 332,000 square feet.
MULTI-ANCHORED CENTERS PROVIDE SIGNIFICANT MULTI-ANCHORED CENTERS PROVIDE SIGNIFICANT GROWTH OPPORTUNITIES AND A LOW RISK PROFILE GROWTH OPPORTUNITIES AND A LOW RISK PROFILE MULTI-ANCHORED METRIC COMMUNITY SHOPPING CENTERS SCALE SCALE >35 Acres and >350,000 Square Feet >75% of ABR from CREDIT CREDIT QUALITY UALITY National and Regional Tenants Minimal Risk from ANCHOR EXPOSURE ANCHOR EXPOSURE Loss of a Single Anchor Expansion and GROWTH OPPORTUNITIES GROWTH OPPORTUNITIES Densification Opportunities MERCHANDISE MIX MERCHANDISE MIX Dynamic DRAW DRAW Regional NYSE: RPT 7
RPT’S 20 RPT’S 20 LARGEST LARGEST MARKET DOMINANT CENTERS BY RENT MARKET DOMINANT CENTERS BY RENT NYSE: RPT 8 Recently acquired.
RPT’S 20 RPT’S 20 LARGEST LARGEST MARKET DOMINANT CENTERS BY RENT MARKET DOMINANT CENTERS BY RENT NYSE: RPT 9 Recently acquired.
RPT’S 20 RPT’S 20 LARGEST LARGEST MARKET DOMINANT CENTERS BY RENT MARKET DOMINANT CENTERS BY RENT NYSE: RPT 10 Recently acquired.
RPT’S 20 RPT’S 20 LARGEST LARGEST MARKET DOMINANT CENTERS BY RENT MARKET DOMINANT CENTERS BY RENT NYSE: RPT 11 Recently acquired.
RPT’S 20 RPT’S 20 LARGEST LARGEST MARKET DOMINANT CENTERS BY RENT MARKET DOMINANT CENTERS BY RENT NYSE: RPT 12 Recently acquired.
A PORTFOLIO A PORTFOLIO OF BEST-I OF BEST-IN-CLASS TENANTS -CLASS TENANTS RPT’s Top 10 Tenant Line-up: 4.6% 2.6% 2.6% 1.8% 1.7% 1.7% 1.5% 1.5% 1.5% 1. 4% Best-in-Class Retailers Increasing Share in RPT’s Roster: #11 #13 #15 #16 NYSE: RPT 13
TENANT MIX – A CRITICAL ELEMENT OF SUCCESS TENANT MIX – CRITICAL ELEMENT OF SUCCESS Home Home Improvement/F provement/Furniture urniture Ap Apparel parel & & Ac Accessories ssories 12% 22% True G ue Groc ocer er 9% Restaurants staurants 14% Electr El ectronics cs & & Offi Office ce 6% Sports & Sports & Hobbies Hobbies Other her 13% 5% Heal Health & th & Beau Beauty ty 4% Service Service 13% Pet Store Pet Stores 3% NYSE: RPT 14
GROWT GROWTH IN AVERAG IN AVERAGE BASE RENTS REFLECTS A HIGHER BASE RENTS REFLECTS A HIGHER QUALITY PORTFOLIO QUALITY PORTFO LIO 5.8% CAGR 5.5 YEARS O 5.5 YEARS OF INCREASIN INCREASING AVERAGE BASE RENTS G AVERAGE BASE RENTS $13.09 $13.20 $12.87 $12.70 $12.11 $12.20 $11.70 $11.20 $10.74 $10.70 $10.48 $10.20 $9.88 $9.70 2010 2011 2012 2013 2014 2Q2015 NYSE: RPT 15 Note: Wholly-owned portfolio.
GENERAT GENERATING CONSISTENT SAME-CENTER NOI GROWTH IS NG CONSISTENT SAME-CENTER NOI GROWTH IS A KEY GOAL A KEY GOAL 5 YE 5 YEARS OF SAM OF SAME-CE CENT NTER NOI NOI GROWT GROWTH 3.5% 3.3% 3.3% 3.0% 3.0% 3.0% 2015 Guidance Range 2.5%-3.0% 2.5% 2.0% 1.5% 1.4% 1.0% 0.5% 0.0% 2011 2012 2013 2014 2015 NYSE: RPT 16
AN EVER IMPROVING, HIGH-Q AN EVER IMPROVING, HIGH-QUALITY PORTFO UALITY PORTFOLIO HAS LIO HAS PRODUCED STRONG CORE FFO GROWTH PRODUCED STRONG CORE FFO GROWTH 20.5% CAGR $1.18 $1.20 5 5 YEA YEARS OF INCREAS S OF INCREASING CORE FFO ING CORE FFO $1.10 $1.06 $1.00 $0.93 $0.90 $0.80 $0.80 $0.70 $0.56 $0.60 $0.50 $0.40 $0.30 2010 2011 2012 2013 2014 NYSE: RPT Note: Core FFO is Operating FFO minus straight-line rent, above-below market rent, fee income, termination fees, land sales, and bargain purchase gains. 17
FOUNDATIONS FOR FUTURE GROWTH
FOUNDAT FOUNDATIONS FOR FUTURE GROWTH WILL DRIVE LONG- S FOR FUTURE GROWTH WILL DRIVE LONG- TERM SHAREHOLDER VALUE TERM SHAREHOLDER VALUE #1 STREAMLINING THE #3 STRENGTHENING FOUNDATIONS FOUNDAT S PORTFOLIO THE ORGANIZATION FOR FUTURE FOR FUTURE GROWT GROWTH #2 RAMPING-UP #4 INCREASING NAV REDEVELOPMENT #1 Streamlining #1 Streamlining the Portfolio the Portfolio Acquiring or selling interests in joint venture properties. Currently, only four JV properties in the portfolio. Reducing exposure to non-core properties and markets. Currently, targeting $60 - $75 million in sales this year. Making progress on leasing sole office building to position for sale. Monetizing unproductive land. Sold $18.5 million of land parcels thus far in 2015. so so #2 Ramping-Up Redevelopment #2 Ramping-Up Redevelopment Increased pipeline to $72 million from $51 million. Increasing exposure to best-in-class retailers with addition of Nordstrom Rack, Dick’s Sporting Goods, Saks OFF 5 TH , Stein Mart, and Ross Dress For Less. Over 50% of the portfolio has the potential for value-add redevelopment activity in the next 2-3 years. NYSE: RPT 19
FOUNDAT FOUNDATIONS FOR FUTURE GROWTH WILL DRIVE LONG- S FOR FUTURE GROWTH WILL DRIVE LONG- TERM SHAREHOLDER VALUE TERM SHAREHOLDER VALUE #1 STREAMLINING THE #3 STRENGTHENING FOUNDATIONS FOUNDAT S PORTFOLIO THE ORGANIZATION FOR FUTURE FOR FUTURE GROWTH GROWT #2 RAMPING UP #4 INCREASING NAV REDEVELOPMENT #3 #3 Strengthening Strengthening the Organization he Organization Enhanced C-suite by hiring new COO. Divided portfolio into two regions to accelerate NAV growth. Hired new leasing and development personnel. Adopted four-point management philosophy. #4 Increasi #4 Incre sing NAV ng NAV Driving rents at spreads of 6% – 9% while maintaining occupancy. Allocating capital through newly-formed management investment committee. Focused on increasing portfolio quality and sourcing capital though asset sales as opposed to issuing new equity. NYSE: RPT 20
ACQUIRING CQUIRING OUR OUR PARTNERS’ PARTNERS’ INTEREST INTEREST IN IN CORE CORE SHOPPING CENTERS SHOPPING CENTERS $185.9 Million 6.7% TOTAL COST INCREMENTAL CAP RATE 95.3% 1.4 Million LEASED TOTAL SQUARE FEET JOINT VENTURE ACQUISITION STRATEGY: Simplifies ownership and management structure. Immediate value-add redevelopment opportunities at three of the centers. Opportunity to drive below-market rents and lease-up vacancies, which can produce up to $1.3 million in new rents. Contributes to market diversification. Accretive use of capital. NYSE: RPT 21
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