INVESTOR PRESENTATION Taking Retail to New Heights MAY 2014
Table of Contents A. Corporate Overview, Goals, and Growth Levers B. High Quality Shopping Center Portfolio C. Value-Add Redevelopment and Development D. Strategic Acquisitions – Driving Growth and Quality E. Fortified Balance Sheet F. Investment Highlights Page 2
Company Overview • Ramco- Gershenson Properties Trust (“RPT”, “Ramco - Gershenson”, or the “Company”) is a Real Estate Investment Trust (REIT) that owns and manages interests in 79 market dominant, multi-anchored community shopping centers in 13 states valued at approximately $2.0 billion. • The Company’s shopping centers cater to the everyday needs of the consumer and are tenanted by best-in-class national and regional retailers, including TJ Maxx, New Whole Foods Market, The Shops on Lane Avenue Columbus, Ohio Marshalls, LA Fitness, Bed Bath & Beyond, The Home Depot, Nordstrom Rack, Ross Dress for Less, Kohl’s, and Stein Mart. • Ramco- Gershenson’s centers typically feature a leading grocery anchor, including Whole Foods, Publix, and Kroger, that generate average annual sales of $489 per square foot. • The Company maintains a strong balance sheet, with ample liquidity and access to capital to support its growth initiatives highlighted by a net debt to EBITDA ratio of New TJ Maxx, The Shoppes of Lakeland 6.1x. Lakeland, Florida Note: As of March 31, 2014. Page 3
The Company’s Strategic Goals The Company has two strategic goals which will drive long-term shareholder value: The Company will continue to upgrade the Continuous quality of its shopping center portfolio, Portfolio Quality which will be reflected in an even stronger demographic profile, higher average base Improvement rents, and a fortified top tenant line-up. Advantageously acquire high-quality shopping centers in target metro markets, Grow Assets undertake value-add redevelopments and and Earnings select developments, and lease to best-in- Potential class retailers to drive both external and internal growth. Page 4
Identified Levers for Quality and Growth The Company has three levers that promote quality and growth: Ownership of a high-quality shopping center portfolio with a proven track record of performance positions the Company to deliver above average same-center NOI growth of 3% - 4% for the foreseeable future. Robust redevelopment pipeline valued at $100 million and development projects in process are estimated to produce average returns of 10%-11% supplementing core earnings growth over the next several years. A well-defined acquisition strategy targeted at $350- $500 million in 2014 will contribute to an increase in ownership of high-quality, multi-anchored shopping centers in desirable trade areas. Page 5
High Quality Shopping Center Portfolio • Market Dominant, Multi-Anchored Profile • Market Leading Centers • Credit Quality Top Tenant Line-up • Strong Operating Metrics Page 6
Market Dominant, Multi-Anchored Profile Dominant 260,000 Square Feet 1 Multi-Anchored 4+ Anchors Per Center Community Center Focus 80% of Base Rent 2 5-Mile Income-$74,000 Strong Demographics 5-Mile Population-161,000 Creditworthy Tenants 87% National/Regional Strong Rent Growth 5.7% Leasing Spreads Page 7 1 Includes shadow anchors. Anchor space is >10,000 square feet. 2 Community Centers are typically defined as shopping centers with 125,000 – 400,000 square feet, contain two or more anchors, and have a 3 – 6 mile trade area . Power centers are defined as centers where less than 20% of the GLA is shop space.
Market Leading Shopping Centers 1. RIVER 1. VER CITY TY MARKETPLA ETPLACE E / FL 2. DEERF RFIELD ELD TOWNE NE CENTER TER / O OH 3 . TEL-TWE TWELVE LVE / MI ABR: $9.4 million ion $16.95 p psf ABR: $8.5 million ion $19.73 p psf ABR: $5.8 million ion $11.07 p psf TOTAL GLA: 899,588 (Owned: d: 557,087) TOTAL GLA: 460,675 TOTAL GLA: 523,411 MAJOR TENANTS: Lowe’s , , Wal-Mart, art, Bed, MAJOR TENANTS: : Whole le Foods ds, , Bed Bath & MAJOR TENANTS: : Meijer, , Lowe’s , , DSW, Bath & Beyond, d, Michae aels ls, , Ross Beyond, buy buy Baby, Dick’s PetSmart, art, Michae aels ls, , Best Buy, Pier 1 5. MISSION BAY PLAZA / FL 4. HUNTER’S SQUARE / MI 6. WES 6. EST T OAKS KS / / MI MI ABR: $5.6 million ion $22.14 psf ABR: $5.3 m ABR: $5.3 m million ion $12.94 p psf million ion $17.02 p psf TOTAL GLA: 263,714 TOTAL GLA: 633,081 ( (Owned: d: 411,941) TOTAL GLA: 354,323 MAJOR TENANTS: : The Fresh Market, t, MAJOR TENANTS: Marshalls, Kohl’s, JoAnn, MAJOR TENANTS: : TJ Maxx, , Marshalls alls, , Bed Golfsmith, LA Fitness, Toys “R” Us Michae aels ls, DSW, Old Navy, Home Goods Bath & Beyond, buy buy Baby, GAP Page 8
Market Leading Shopping Centers 7. HARVES EST T JUNC UNCTI TION N / CO 8. JACKSON N CROSSING / MI 9. TROY MARKETPLA KETPLACE E / MI ABR: $5.0 million ion $15.20 p psf ABR: $3.9 million ion $10.29 p psf ABR: $3.6 million ion $16.68 psf TOTAL GLA: 471,357 (Owned: d: 336,357) TOTAL GLA: 656,568 (Owned: d: 402,326) TOTAL GLA: 238,354 (Owned: d: 217,754) MAJOR TENANTS: Dick’s, Ross, Marshalls, MAJOR TENANTS: Target, , TJ Maxx, , Sears, , MAJOR TENANTS: Nordstr trom om Rack, , LA Michae aels ls, , Bed Bath & Beyond, d, ULTA Beauty ty Bed Bath & Beyond, d, Toys “R” Us, Kohl’s Fitness, , Golfsmith ith, , REI, PetSmart art 10. HERI RITA TAGE PLACE E / MO 11. TOWN N & COUN UNTRY RY CROSSING NG / MO 12. HOOVER ER ELEVEN EN / MI ABR: $3.3 million ion $13.37 p psf ABR: $3.3 million ion $25.83 p psf ABR: $3.1 million ion $11.53 p psf TOTAL GLA: 269,105 TOTAL GLA: 285,467 ( (Owned: d: 148,630) TOTAL GLA: 280,719 MAJOR TENANTS: Marshalls alls, , TJ Maxx, , MAJOR TENANTS: Whole le Foods ds, , Target, , MAJOR TENANTS: Kroger, r, Marshalls alls, , Dierberg’s Market Cooper’s Hawk, Stein Mart Dunham’s Sports ts Page 9
Credit Quality Top Tenant Line-up • The Company is focused on continually increasing the % of Tenant Name presence of leading, national ABR tenants ~ Whole Foods Market and Regal Cinemas are the 5.0% newest entrants in the Company’s 2.3% top 10 tenant line-up. • The Company’s portfolio is 2.1% heavily weighted towards 1.9% community centers with its tenant line-up dominated by national and 1.7% regional destination oriented retailers providing stability in any 1.7% economy. 1.5% • RPT strives to include in its acquisitions the number one 1.5% grocer in its markets resulting in 1.5% strong average annual supermarket sales of $489 per 1.5% square foot. Note: As of March 31, 2014. Page 10
Strong Operating Metrics Sustainable Same-Center NOI Growth Increasing Average Base Rents 4.0% 3.5% $12.40 $12.35 3.3% 3.0% $12.20 3.0% $12.00 $11.80 2.0% $11.54 1.4% $11.60 $11.32 1.0% $11.40 $11.20 0.0% $10.98 $10.87 $11.00 $10.82 2010 2011 2012 2013 2014* $10.80 -1.0% *Reflects mid- $10.60 range of -2.0% guidance. 2008 2009 2010 2011 2012 2013 -1.6% Community Center Focus Strong National/Regional Composition Local Grocery- 14% Anchored 8% Power Centers Regional 12% 13% Community National Centers 73% 80% Page 11
Value-Add Redevelopment and Development • $100 Million Redevelopment Pipeline • Expansion and Re-anchoring Case Studies • Select Development Page 12
$100 Million Redevelopment Pipeline Exciting Projects Include Redevelopment Pipeline Best-in-Class Retailers • The Company currently has a redevelopment pipeline estimated at $100 million, which is expected to produce average returns of 10%- 11%. • Projects include expansions, re- anchorings, and retenantings designed to drive property level NOI and NAV. • Ne w anchor tenants at RPT’s centers include Ross Dress for Less, Stein Mart, TJ Maxx, LA Fitness, Gordman’s, and Hobby Lobby. Page 13
Expansion Case Study The Shoppes at Fox River Milwaukee, Wisconsin • The Shoppes at Fox River, anchored by Pick ‘n Save (Roundy’s) and Target (shadow) was acquired in December of 2010 and encompassed 136,000 square feet plus 12 acres of undeveloped land. • Phase II development of TJ Maxx, ULTA, rue 21, Charming Charlie, and Hobby Lobby completed in 2013/2014. • • Three phases totaling 520,000 square feet Phase III expansion planned for 2015 on additional 10 acres with up • Total cost of $64 million to 150,000 square feet of primarily • Anticipated 9% return on investment national retailers transforming the • $19.0 million in value creation based on a shopping center into a 520,000 6.5% cap rate square foot market dominant retail destination. Page 14
Expansion and Re-anchoring Case Studies Harvest Junction Town & Country Boulder, Colorado St. Louis, Missouri • 471,000 SF center acquired in 2Q2012 • 279,000 SF center acquired 4Q2011 Acquisition marked the Company’s entrance • Added 9,000 SF Coopers Hawk, signed • into Boulder/Denver market lease for a new 31,000 square foot Stein- Mart • Acquired an additional 15 acres Trade area population of 170,000 and • Trade area population of 96,000 and average • average HH income of $107,000 HH income of $78,000 Net Investment $7.1 million Net Investment $6.0 million • • • Projected incremental return of 11% • Projected incremental return of 12% Page 15
Recommend
More recommend
