Ramco-Gershenson Properties Trust Reports Financial And Operating Results For The Third Quarter 2016

FARMINGTON HILLS, Mich., Nov. 01, 2016 (GLOBE NEWSWIRE) -- Ramco-Gershenson Properties Trust (NYSE:RPT) today announced its financial and operating results for the three and nine months ended September 30, 2016.

THIRD QUARTER 2016 HIGHLIGHTS AND SUBSEQUENT TRANSACTIONS:
  • Net income attributable to common shareholders for the third quarter of $0.15 per diluted share.
  • Operating Funds from Operations ("Operating FFO") of $0.34 per diluted share.
  • Sold two Michigan shopping centers for $40.1 million.
  • Signed 65 comparable leases totaling 352,886 square feet at comparable rent growth of 11.2%.
  • Ended the quarter with a net debt to adjusted EBITDA of 6.1X.
  • Acquired Centennial Shops in affluent Minneapolis suburb of Edina for $32.1 million on October 11, 2016.

"Based on our solid performance in the quarter and year to date we are on track to meet our stated business objectives for 2016," said Dennis Gershenson, President and Chief Executive Officer. "Our two Michigan shopping center sales and subsequent purchase of Centennial Shops in metropolitan Minneapolis reflect our continued focus on selling lower-growth centers and redeploying that capital into high-quality shopping centers, that have significant internal growth potential and the ability to add long-term value through strategic redevelopments, in attractive first ring metropolitan sub-markets."

FINANCIAL RESULTS:

For the three months ended September 30, 2016:
  • Net income available to common shareholders of $11.9 million, or $0.15 per diluted share, compared to $32.0 million, or $0.38 per diluted share for the same period in 2015.
  • Operating FFO of $29.7 million, or $0.34 per diluted share, compared to $31.9 million, or $0.36 per diluted share for the same period in 2015.
  • FFO of $27.8 million, or $0.32 per diluted share, compared to $32.4 million, or $0.37 per diluted share for the same period in 2015.

For the Nine months ended September 30, 2016
  • Net income available to common shareholders of $47.7 million, or $0.60 per diluted share, compared to $44.8 million, or $0.57 per diluted share for the same period in 2015.  
  • Operating FFO of $90.0 million, or $1.02 per diluted share, compared to $87.7 million, or $1.00 per diluted share for the same period in 2015.
  • FFO of $89.6 million, or $1.02 per diluted share, compared to $89.4 million, or $1.02 per diluted share for the same period in 2015.

OPERATING RESULTS:
  • Consolidated portfolio leased occupancy of 94.2% and physical occupancy of 93.6%.
  • Signed 90 leases in the consolidated portfolio encompassing 464,812 square feet, including 65 leases totaling 352,886 square feet at comparable rental growth of 11.2%.

BALANCE SHEET METRICS (as of September 30, 2016):
  • Net debt to total market capitalization of 37.5%.
  • Net debt to adjusted EBITDA of 6.1X, interest coverage of 3.8X, and fixed charge coverage of 3.1X.
  • Weighted average debt maturity of 6.2 years.

INVESTMENT ACTIVITY:

Dispositions

The Company sold two Michigan shopping centers for $40.1 million.  The shopping centers sold were:
  • Shoppes at Fairlane Meadows, Dearborn, Michigan (100% ownership), a 157,000 square foot shopping center anchored by Best Buy and Citi Trends, with ABR per square foot of $13.85.
  • Livonia Plaza, Livonia, Michigan (100% ownership), a 137,000 square foot shopping center anchored by T.J. Maxx and Kroger, with ABR per square foot of $11.11.

Dispositions of income producing properties year-to-date totaled $121.9 million.

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