2010 Annual Report C O R P O R a T E P R O F I L E
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2010 Annual Report Corporate Office 31500 Northwestern Highway Suite 300 Farmington Hills, MI 48334 Tel: (248) 350-9900 Fax: (248) 350-9925 www.rgpt.com Distribution Reinvestment Plan (“DRIP”) The DRIP offers shareholders the opportunity to automatically reinvest distributions toward the purchase of additional Shares of Ramco-Gershenson Properties Trust common stock. To receive additional information on the DRIP, please return this reply card by mail. ____Yes, please send me information on the Company’s DRIP. Note:To participate in the DRIP, you must be a registered shareholder or arrange with your broker to participate on your behalf. Please Print: Name: Address: City: State: Zip: Daytime Phone: C O r p O r a t e p r O f i l e Ramco-Gershenson Properties Trust (NYSE:RPT) is a fully integrated, self-administered, publicly-traded real estate investment trust (REIT) based in Farmington Hills, Michigan. Our primary business is the ownership and management of shopping centers in targeted markets in the Eastern and Midwestern regions of the United States. At December 31, 2010, the Company owned interests in 89 shopping center properties and one office building that comprise approximately 20.3 million square feet of gross leasable area, of which 15.6 million square feet is owned by the Company and its real estate joint ventures. The properties are located in Michigan, Florida, Ohio, Georgia, Wisconsin, Illinois, Indiana, Virginia, New Jersey, Maryland, Tennessee and South Carolina. S e l e C t e d f i n a n C i a l H i g H l i g H t S (dollars in thousands, except per share amounts) Years Ended December 31 2010 2009 2008 2007 2006 Total Revenues $ 119,758 $122,854 $ 132,800 $ 143,684 $ 144,902 Net Income (Loss) Attributable to Common Shareholders $ (20,148) $ 13,720 $ 23,501 $ 34,260 $ 28,969 Funds from Operations $ 40,138(1) $ 45,263 $ 47,362 $ 54,975 $ 54,604 Per Share Funds from Operations, Diluted Share $1.05(1) $1.80 $2.21 $2.56 $2.54 Cash Distributions Declared $0.65 $0.79 $1.62 $1.85 $1.79 Total Assets $1,052,829 $997,957 $1,014,526 $1,088,499 $1,064,870 Mortgages and Notes Payable $ 571,694 $552,836 $ 663,189 $ 691,644 $ 676,225 Total Liabilities $ 613,463 $591,392 $ 701,488 $ 765,742 $ 720,722 RPT Shareholders’ Equity $ 402,273 $367,228 $ 273,714 $ 281,517 $ 304,547 Number of Properties 90 88 89 89 81 (1) Excludes impairment charges of $33.3 million, loss on the early extinguishment of debt of $0.2 million and a bargain purchase gain of $9.8 million. To my fellow shareholders: INCREASING PORTFOLIO AVERAGE RENTS While the economy as a whole began (perto squashowre foot )improvement in 2010, we saw these last 12 months$12 as an opportunity to pur- sue an aggressive business plan focused on three key areas: 12 core shopping center portfolio$1 improvement,0 a stronger capital structure and the pursuit of investment opportunities to add 10 value and growth. $8 8 $6 in light of these objectives, i view considerable signs of improve- 6 2010 as a period of real progress ment in 2010. Retailers posted $4 for the company. Leasing velocity positive sales figures for the first 4 at our shopping centers reached $2 time in two years and, in turn, an all-time high. We completed were willing to roll out expansion 2 six value-added shopping center $0 plans albeit at a relatively cautious Dennis Gershenson ’06 ’07 ’08 ’09 ’10 0 President and CEO redevelopments. We strength- pace. as a result of these actions, ened our balance sheet by raising our centers, which are primarily equity and by lengthening our anchored by supermarkets and TOTAL ASSETS average debt maturity. and, we ac- value-oriented retailers, experi- UNDER MANAGEMENT (in millions) quired three high-quality shopping enced a significant increase in TOTAL REVENUES $2,500 centers in markets that promote UNDERtenant MANA interest.GEMEN Tthis increased 250 geographic diversification of our retailer(in millions) attention translated into portfolio. on the most significant$250 141 new lease signings com- 2500000 $2,000 measure to our shareholders, we pared to 116 new leases in 2009. 200 outperformed the majority of our$200 included in this number are 13 2000000 $1,500 peers both large and small, post- new anchor leases with creditwor- ing a total shareholder return of$1 50 thy national and regional retailers, 150 1500000 $1,000 32.7%. our results for 2010 are including t.J. maxx, Ross Dress both indicative of our manage- For Less, Best Buy, Fresh market, $100 1000000 $500 ment team’s dedication and hard Golfsmith and old navy, that will 100 work as well as a demonstration open throughout 2011 and 2012. of a company on the path to long- $50 these retail additions not only 500000 $0 ’06 ’07 ’08 ’09 ’10 term growth and the continuing strengthen our shopping centers’ 50 improvement in shareholder value. $0 tenant mix, income stream and net Joint Venture Properties ’06 ’07 ’08 ’09 ’10 0 asset value, they will also provide Consolidated Properties theJoint foundation Venture Properties to draw smaller, Core Portfolio Improvement: 0 the difficult economic environ- higher-payingConsolidated Proper tenancies.ties the re- ment that our industry has faced sulting increase in occupancy over the past several years showed the next several years will further enhance the attractiveness of our R a m c o - G e R s h e n s o n P R o P e R t i e s t R u s t 1 centers for both retail tenants and our management team has $76 million equity raise in may. customers alike. in addition to the also been focused on portfolio this offering provided capital for substantial increase in new lease improvements as it relates to the execution of our business signings, we renewed 251 exist- shopping center renovation and plan and to retire maturing debt. ing leases achieving a retention redevelopment. in 2010, our the repayment of expiring mort- rate of greater than 75%, which is company was actively involved gages was consistent with our above our historic average. While in eight value-added projects. goal to increase the number of we made credible progress on the During the year, we completed unencumbered assets. at year- leasing front, our efforts were par- six of the eight redevelopments, end, our consolidated balance tially offset by the difficulties that achieving on average a double- sheet had improved to a debt-to- a number of retailers continued digit, stabilized return on cost. market capitalization of 53% and a to experience in 2010. our port- For a majority of these capital total market capitalization of $1.1 folio was most notably impacted improvements, the company billion. to further reduce lever- by the bankruptcies of old time was proactive in either recap- age and improve liquidity, we plan Pottery, Blockbuster and a&P. turing existing anchor tenant to fund maturing debt in 2011 the departure of these retailers space where the retailer was through the sale of non-core as- reinforced our commitment to pro- struggling or expanding the sets, out parcels and excess land, mote greater diversification of our shopping center to accommo- as well as to secure long-term fi- tenant mix, reducing our exposure date the addition of a new retail nancing for a limited number of to any single tenant. ever mindful concept desirous of entering our larger assets. of this goal, we believe that with the market. an economy slowly on the mend, Growth and Value Creation: our increased leasing velocity and strengthening in the second half of 2010, we the opening of our newest anchor the Balance sheet: reactivated our acquisition pro- tenancies, the leasing successes in 2010, our efforts to strengthen gram in an improving market. our we experienced in 2010 will the balance sheet included a approach to these acquisitions continue into 2011. “ In the second half of 2010, we reactivated our acquisition program in an improving market. Our approach to these acquisitions remained disciplined as we ensured that each new purchase contributed to our broader goals of improving the overall quality of our portfolio, achieving geographic diversification and creating Recently acquired Liberty Square shopping center located in Wauconda (Chicago), Illinois. an opportunity to add value at each center in the future.” 2 2 0 1 0 a n n u a L R e P o R t remained disciplined13.2% as we en- square foot marsh supermarket 34.2% sured that 0.6%each new purchase in carmel, indiana, a suburb 3.3% contributed 4.2%to our broader goals of indianapolis. 43.8% of improving the overall qual- 39.5% • the shoppes at Fox River, a ity of our portfolio, achieving 136,000 square foot shop- geographic diversification and ping center, anchored by a creating an opportunity to add Pick ’n save supermarket value at each center in the future. 42.5% and shadow-anchored by 18.7% our acquisitions were: target. the center is located • Liberty square, a 107,000 inPercent Waukesha, of Wisconsin, a PORTFOLIO Annualized CAPITAL (dollars in square footMIX community suburbRents of milwaukee in close STRUCTURE millions) shopping centerSupermarket located Anchored Shoppingin Centersproximity 13.2% to our West allis and Fixed Rate Debt 34.2% $ 369.5 Wauconda, Supermarketillinois, an Anchored affluent Shopping Centersm adison shopping centers. Variable Rate Debt 18.7% $ 202.2 (with at least one additional anchor) 42.5% (1) chicago suburb.Multi-Anchor the Shopping center Centers is Common Shares 43.8% $ 472.4 (non-supermarket) We believe39.5% that these acquisitions anchored by a 55,000 square Operating represent the type of invest- Partnership Units(1) 3.3% $ 36.1 foot Jewel-oSinglesco Anchorsupermarket.