Ramco-Gershenson Properties Cuts 2009 Outlook

FARMINGTON HILLS, Mich. (AP) — Real estate investment trust Ramco-Gershenson Properties Trust on Tuesday cut its full-year guidance, citing dilution from a stock offering, costs for a proxy contest and strategic review, and higher borrowing costs.

It also named director Stephen Blank as non-executive chairman. Dennis Gershenson will continue to serve as the CEO and president, the company said.

Ramco-Gershenson, which owns shopping centers and other retail properties, now expects full-year funds from operations ranging from $1.80 per share to $1.86 per share, down from its prior outlook of $2.21 to $2.34 per share. The revision includes a 15-cent per share cut due to an offering of 9 million common shares announced earlier Tuesday.

Ramco-Gershensen shares fell $1.23, or 12.8 percent, to $8.41 in aftermarket electronic trading, after closing the regular session up 2 cents at $9.64.

The company also said its board decided to keep the company as a stand-alone business after a review of its strategic and financial alternatives. And it said it received commitments for a new secured credit facility totaling $250 million, with Keybank National Association as its lead bank and eight participant banks.