Company Overview Ramco-Gershenson Properties Trust owns and manages - - PowerPoint PPT Presentation

2 Woodbury Lakes – Woodbury, MN

Company Overview

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• Ramco-Gershenson Properties

Trust owns and manages interests in 79 shopping centers located in major metropolitan markets.

• The Company’s shopping centers

are tenanted by best-in-class national and regional retailers.

• Ramco-Gershenson’s centers

average 270,000 square feet, have an average of five national anchors, and often feature the trade area’s leading grocer.

• The Company maintains a strong

balance sheet with an investment grade profile.

Shops at Old Orchard – West Bloomfield, MI 3

Focused on Market Dominant Centers

Dominant 427,000 Square Feet[1] ABR, psf of $16.20 Multi-Anchored Community Centers Strong Demographics Creditworthy Tenants 86% National/Regional Income of $87,000 Population of 166,000 45% of Annual Base Rent Average 7 Anchors Per Center

RPT’s 18 Largest Centers by Rent

[1] Includes shadow anchors, without shadow anchors average size is 332,000 square feet.

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RPT’s 18 Largest Centers By Rent

Recently Acquired

ABR: $9.4 million $17.07 psf

Total GLA: 899,588 (Owned 557,087) Major Tenants: Bed Bath & Beyond, Best Buy, Ross Dress for Less, Lowe’s, and PetSmart

ABR: $8.6 million $19.54 psf

Total GLA: 792,945 (Owned 459,780) Major Tenants: Target, Lowe’s, Sprouts Market, Charming Charlie, DSW, Microsoft, and CA Technologies

ABR: $8.0 million $19.82 psf

Total GLA: 460,675 Major Tenants: Whole Foods, Bed Bath & Beyond, buybuy Baby, Dick’s Sporting Goods, and Regal

ABR: $6.7 million $13.97 psf

Total GLA: 627,202 (Owned 503,502) Major Tenants: Target, Bed Bath & Beyond, Best Buy, Dick’s Sporting Goods, Old Navy, and Michaels

ABR: $5.7 million $21.60 psf

Total GLA: 317,603 (Owned 305,086) Major Tenants: buybuy Baby, Charming Charlie, DSW, Gap, H&M, Michaels, Victoria’s Secret, and Trader Joe’s

ABR: $5.7 million $11.03 psf

Total GLA: 523,411 Major Tenants: Meijer, DSW, Lowe’s, Michaels, Office Depot, and PetSmart

1. 2. 3. 4. 5. 6.

River City Marketplace|FL Front Range Village|CO Deerfield Towne Center|OH Bridgewater Falls|OH Woodbury Lakes|MN Tel-Twelve|MI

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RPT’s 18 Largest Centers By Rent

Recently Acquired

ABR: $5.5 million $21.36 psf

Total GLA: 264,748 Major Tenants: The Fresh Market, LA Fitness, OfficeMax, and Golfsmith

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Mission Bay Plaza|FL

8. 9. 10. 11. 12.

The Plaza at Delray|FL Hunter’s Square|MI Jackson Crossing |MI Millennium Park|MI JV Troy Marketplace|MI

ABR: $5.3 million $17.26 psf

Total GLA: 313,913 Major Tenants: Publix, Ross Dress for Less, Marshalls, LA Fitness, and Michaels

ABR: $5.2 million $17.57 psf

Total GLA: 354,323 Major Tenants: Bed Bath & Beyond, Old Navy, buybuy Baby, T.J. Maxx, and Marshalls

ABR: $4.1 million $10.59 psf

Total GLA: 656,568 (Owned 402,326) Major Tenants: Kohl’s, Bed Bath & Beyond, Best Buy, T.J. Maxx, and Jackson 10 Theater

ABR: $3.9 million $14.41 psf

Total GLA: 625,209 (Owned 272,568) Major Tenants: Home Depot, Marshalls, Michaels, PetSmart, ULTA Beauty, Costco, and Meijer

ABR: $3.7 million $16.86 psf

Total GLA: 238,354 (Owned 217,754) Major Tenants: Nordstrom Rack, Golfsmith, LA Fitness, PetSmart, and Total Hockey

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RPT’s 18 Largest Centers By Rent

Recently Acquired

ABR: $3.4 million $13.47 psf

Total GLA: 269,105 Major Tenants: Dierbergs Markets, Marshalls, Petco, and T.J. Maxx

• 13. Heritage Place|MO

14. 15. 16. 17. 18.

The Shoppes at Fox River IWI Town & Country Crossing|MO Mount Prospect Plaza|IL Chester Springs|OH JV Shops on Lane Avenue|OH JV

ABR: $3.4 million $14.26 psf

Total GLA: 369,774 (Owned 237,392) Major Tenants: Target, Hobby Lobby, Petco, Pick’n Save, T.J. Maxx, and ULTA Beauty

ABR: $3.4 million $26.16 psf

Total GLA: 285,467 (Owned 148,630) Major Tenants: Whole Foods Market, and Target

ABR: $3.2 million $11.98 psf

Total GLA: 300,682 Major Tenants: Marshalls, Ross Dress for Less, LA Fitness, Aldi, Petco and Walgreens

ABR: $3.1 million $14.76 psf

Total GLA: 222,792 Major Tenants: CVS, Marshalls, Staples, Shop-Rite Supermarket, and Nitroflex Gym

ABR: $3.1 million $21.44 psf

Total GLA: 169,035 Major Tenants: Bed Bath & Beyond, Pier 1 Imports, and Whole Foods Market

Nagawaukee Center – Delafield, WI 7

Corporate Strategy

Ramco-Gershenson is committed to intelligently growing and constantly improving its high- quality shopping center portfolio to generate long-term shareholder value.

• Invest in market dominant shopping

centers in leading MSAs occupied by best-in-class retailers.

• Execute on value-add opportunities

to drive NOI and NAV.

• Promote operating excellence that

drives strong, consistent results.

• Maintain a strong balance sheet for

stability and flexibility.

Parkway Shops – Jacksonville, FL 8

In Summary-2014 Accomplishments

STRATEGIC INVESTMENTS: VALUE-ADD OPERATING EXCELLENCE BALANCE SHEET

• Acquired $322 million of high-quality

shopping centers in trade areas with average household incomes of $85,500 tenanted by best-in-class retailers that pay average rents

• f $15.96 per square foot.
• Sold 4 non-core shopping centers with

average household incomes of $65,200 and average base rents of $8.69.

• Redeveloping seven shopping centers for a

total cost of $51 million which are expected to produce incremental returns of 10-11%.

• Continued to post solid operating metrics

highlighted by same-center growth of 3.3%, core portfolio occupancy of 95.5%, and comparable leasing spreads of 6.3%.

• Maintained a strong balance sheet with net

debt to EBITDA of 5.9x and fixed charge cover of 3.0x.

OTHER BUSINESS PLAN OBJECTIVES:

Acquisitions and Dispositions:

• Selective acquisitions with the opportunity to add value.
• Recycle capital from the sale of non-core assets (bottom 5%) to partially

fund acquisitions. Redevelopment and Development:

• Between $50-$75 million investment each year.
• Stabilized returns of approximately 10% on incremental costs.

Core Operations:

• Increasing cash flow through new and renewal rental growth.
• Diverse, best-in-class top tenant line-up.

GUIDANCE:

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2015 Business Plan

Leased Occupancy 95.5% to 96.5% Same-Center NOI Growth 2.5 % - 3.5%

Operating FFO Guidance $1.27 - $1.33 per share

Photos of Front Range Village – Fort Collins, CO 10

Minnesota #16 Minneapolis –

• St. Paul

3% of ABR

• St. Louis

#19 MSA 6% of ABR Chicago #3 MSA 4% of ABR Cincinnati #28 MSA 10% of ABR Denver #21 MSA 8% of ABR SE Michigan #14 MSA 24% of ABR Atlanta #9 MSA 4% of ABR Jacksonville #40 MSA 6% of ABR SE Florida #8 MSA 11% of ABR Milwaukee #39 MSA 5% of ABR

 RPT is focused on 10 metropolitan markets that currently account for over 81% of its pro rata annualized base rents.  The Company is intent

• n diversifying its

portfolio so that no one state represents over 25% of annualized base rents.

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Focused on 10 Metropolitan Markets in the Nation’s Top 40 MSAs

Market MSA Rank % of ABR 5-Mile Trade Area AHH Income Southeast Michigan 14 24% $79,000 Southeast Florida 8 11% $60,000 Cincinnati 28 10% $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 Minneapolis-St. Paul 16 3% $96,000 Total/Average 81% $80,000

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Strong Trade Area Demographics

Nagawaukee Center, Milwaukee, WI

The Company’s commitment to transforming its portfolio to large market dominant centers in desirable trade areas is evidenced by its acquisition and disposition activity over the last 5 years.

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Strategic Investments Drive Quality and Value

31 shopping centers for $1.2 Billion $82,000 Avg. Household Income 178,000 Avg. Population 284,000 Avg. Square Feet 5 Anchors per center $14.35 rent per square foot 6.5-7.5% Cap Rate 22 shopping centers for $176 Million $64,000 Avg. Household Income 149,000 Avg. Population 130,000 Avg. Square Feet 3 Anchors per center $10.18 rent per square foot 8-9% Cap Rate

Acquired Sold

• $322 million investment
• Total Owned GLA 1.5 Million
• ABR, psf $15.96

Woodbury Lakes – Woodbury, MN Minneapolis – St. Paul #16 MSA Bridgewater Falls - Hamilton, OH Cincinnati #28 MSA Front Range Village – Fort Collins, CO Denver #21 MSA

ABR: $8.0 million $19.54 psf TOTAL GLA: 792,945 (Owned: 459,307) MAJOR TENANTS: ABR: $5.7 million $21.60 psf TOTAL GLA: 317,603 (Owned 305,086) MAJOR TENANTS: ABR: $6.7 million $13.97 psf TOTAL GLA: 627,202 (Owned 503,502) MAJOR TENANTS:

Buttermilk Towne Center - Crescent Springs, KY Cincinnati #28 MSA

ABR: $2.5 million $9.15 psf TOTAL GLA: 277.533 MAJOR TENANTS:

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2014 High-Quality Acquisitions with Value-Add Potential

• Vibrant market dominant shopping center

encompassing 627,000 square feet.

• The shopping center features a strong

anchor line-up including Target (shadow), Dick’s Sporting Goods, Bed Bath & Beyond, T.J. Maxx, JC Penney (ground lease), Old Navy, PetSmart, and Michaels.

• The center also includes over 50 leading

retailers, notably ULTA Beauty, Charming Charlie, Kay Jewelers, Justice, Rue21, Salon Lofts, Massage Envy, Panera Bread, Chick- fil-A, and Buffalo Wild Wings.

Value Creation

• RPT plans to expand and enhance the

center’s retail merchandise mix by transforming the village area into a first class destination.

• A restaurant and entertainment campus is

being contemplated for the southern end of the shopping center.

Bridgewater Falls Hamilton, OH

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Acquisition Spotlight: Value-Add Potential

• The areas only premier lifestyle shopping

center encompassing 318,000 square feet marks RPT’s entrance into the Minneapolis-St. Paul market.

• The center’s high-quality anchors include

Trader Joe’s (shadow), buybuy Baby, DSW, and Michaels.

• The center also includes exciting specialty

tenants, many new to the market, such as American Eagle, H&M, Victoria’s Secret, PacSun, White House|Black Market, Soma, Express, LOFT, Gap, and Buckle.

Value Creation

• RPT plans to capitalize on significant retailer

demand by expanding its entertainment and restaurant components.

• The Company is already finalizing a number of

new leases with national retailers at above market rents to fill vacancies at this 87% leased shopping center.

• Woodbury Lakes sits adjacent to the “City Place”,

State Farm’s 100 acre mixed-use site, slated to include office, limited retail, hotel, and medical uses.

Woodbury Lakes Woodbury, MN

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Acquisition Spotlight: Value-Add Potential

• Dynamic multi-anchored, mixed-use shopping

center encompassing approximately 793,000 square feet.

• Best-in-class tenant mix featuring necessity and

specialty retailers including Target (shadow), Lowe’s (shadow), Sprouts Market, DSW, Toys/Babies R Us, and Sports Authority, as well as

• ther top tier national retailers such as ULTA

Beauty, Cost Plus World Market, and Charming Charlie.

• Home to the Fort Collins Public Library, which

draws 366,000 visits each year.

Value Creation

• Front Range Village provides the opportunity to

develop an additional 100,000 square feet of retail space, including up to six outparcels, which will be land leased or sold.

• RPT plans to add significant retail space and

60,000 – 70,000 square feet of office space as well as restaurants maximizing the sites potential.

• In-place contractual rent increases of $500,000
• ver the next 4 years will also contribute to NOI

growth.

Front Range Village Fort Collins, CO

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Acquisition Spotlight: Value-Add Potential

Photos of Woodbury Lakes – Woodbury, MN 18

Project Location Estimated Project Costs Expected Return on Incremental Investment = Expected Net Increase in Value Merchants’ Square Carmel, IN $6.4 million 10%-11% $3.0 million Harvest Junction North Longmont, CO $7.8 million 9%-10% $3.6 million Deer Grove Centre Palatine, IL $3.6 million 8%-9% $1.1 million Winchester Center Rochester Hills, MI $2.8 million 14%-15% $2.5 million The Shoppes at Fox River Waukesha, WI $20.2 million 9%-10% $7.6 million West Oaks Novi, MI $7.3 million 8%-9% $1.7 million Spring Meadows Holland, OH $3.8 million 9%-10% $0.8 million

Total all Projects $51.9 million 9%-10% $20.3 million

• The Company is committed to undertaking $50-$75 million in value-add improvements at its

centers on a recurring basis, which includes adding best-in-class retailers, expanding the centers’ footprint and developing adjacent vacant land.

• In-process projects will be completed over the next 12-24 months producing:
• 9%-10% ROI
• $4.9 million of NOI
• $20.3 million of NAV

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Value-Add Improvements Drive Quality, NOI and NAV

• The Shoppes at Fox River was

acquired in December of 2010 encompassing 236,000 square feet.

• Phase I development of T.J. Maxx,

ULTA, rue 21, and Charming Charlie on adjacent land that was acquired at the time of the initial shopping center purchase.

• Phase II expansion of a 55,000

square foot Hobby Lobby.

Value Creation

• Phase III adds over 100,000 square

feet at a cost of $20.2 million with an expected incremental return

• n investment of 9-10%.
• Value Creation of $7.6 million.

The Shoppes at Fox River Waukesha (Milwaukee), Wisconsin

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Redevelopment Spotlight: Expansion

• West Oaks, a 300,000 multi-anchored

center strategically located at the convergence of Interstate I-696, I-96, and I-275.

• RPT is adding a 33,000 square foot

Nordstrom Rack, right-sizing Gander Mountain, and relocating David’s Bridal.

• Future improvements include the

addition of another high-end anchor.

• Desirable trade area with an average

household income of $99,000 and a population base of 155,000.

Value Creation

• Project cost of $7.3 million, including

downsizing, relocation, and expansion costs, is expected to produce an incremental return on investment of 8- 9%.

• Value creation of $1.7 million.

West Oaks Novi, MI

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Redevelopment Spotlight: Major ReAnchoring

Parkway Shops Jacksonville, Florida

• Parkway Shops (Phase I)

encompasses 90,000 square feet and is anchored by Dick’s Sporting Goods, Marshalls, and ULTA Beauty.

• The Company has signed a lease

with Hobby Lobby in 55,000 square feet as an anchor for Phase II of the project.

• Net incremental investment of $5.4

million (Phase II) expected to produce a return on investment of 8%-9%.

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Development Spotlight-Legacy Land

Photos of Deerfield Towne Center – Mason, OH 23

The Company’s top 10 tenants:

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High-Quality Retailers

• The Company is focused on leasing to best-in-class retailers with strong credit and

growth profiles.

• Over the last five years, the Company has dramatically reordered its top tenant

line-up by executing leases with those retailers with healthy growth profiles.

Tenants that are no longer in the Company’s top 10:

14.6% 2 2.6% 3 2.6% 4 1.9% 5 1.8% 6 1.7% 7 1.5% 8 1.5% 9 1.5% 10 1.5%

Store 2015 Openings Preferred Footprint (SF) TJX Companies 125 23,000 Panera Bread 115 4,500 Ross Dress for Less 100 25,000 ULTA Beauty 100 10,000 Dick’s Sporting Goods 75 50,000 Five Below 75 8,000 Charming Charlie 55 8,000 Whole Foods 40 45,000 Nordstrom Rack 35 35,000

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RPT’s Leading Retailers Active Expansion Plans

• The Company is focused on leading national retailers that have a fast track for growth.

Note: Per company information and/or public filings.

Service 13% Electronics & Office 7% Health & Beauty 4% 26

Tenant Mix – A Critical Focus for Success

Pet Stores 3%

The Company’s portfolio has a well-balanced retail category mix.

Other 5% Grocery 9% Home & Furniture 10% Sports & Hobbies 13% Restaurants & Entertainment 14% Apparel & Accessories 22%

Increasing Average Base Rents 1.4% 3.3% 3.0% 3.3% 3.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 2011 2012 2013 2014 2015

Generating Same-Center NOI Growth

$10.98 $11.32 $11.54 $12.35 $13.00 $13.11 $10.70 $11.20 $11.70 $12.20 $12.70 $13.20 2010 2011 2012 2013 2014 1Q2015

RPT’s emphasis on quality, in all aspects of its business, has generated ever increasing average base rents and strong same-center NOI growth.

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Building Quality – Delivering Results

2015 Guidance Range 2.5%-3.5%

• RPT is committed to promoting the interests of society and its environment by thoughtfully

responding to the impact of the Company’s business activities.

• Everyday thousands of people visit a Ramco property creating a significant impact on both the

social and environmental landscape. RPT’s Active Environmental Sustainability Initiatives Include:

• Restoration, expansion and preservation of natural habitats including wetlands.
• Installation of amenities friendly to mass transit including park-n-ride sites and bike paths.
• Utilizing energy efficient LED lighting with automatic dusk to dawn timers.
• Recycling milled asphalt for parking lot installation/improvement.
• Reduction in the use of potable water for irrigation by capturing run-off water supplies and

rain sensor installation.

Deerfield Towne Center – Mason, OH Nagawaukee Center – Delafield, WI The Shoppes at Fox River – Waukesha, WI

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Managing for Sustainability

29 Photos of Lakeland Park Center – Lakeland, FL 29

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Four-Point Management Philosophy

• 1. Location-The selection of the

right market, trade area, demographics, and strategic intersections.

• 2. Merchandising-The optimum

mix of best-in-class national tenants plus exciting regional and unique local retailers.

• 3. Placemaking-Creating Inviting

environments to improve the

• verall shopping experience.
• 4. Community First-Developing

initiatives to drive traffic and promote community loyalty.

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Community First Initiative

Mission statement: Integrate RPT’s high-quality shopping centers into the consciousness

• f the community to promote:
• Consumer Loyalty
• Increased Traffic
• Higher Sales
• 1. Develop Signature Event

Programming with Wide Appeal

• 2. Cultivate Initiatives that

Rewards Frequent Shoppers

• 3. Engage with the Local

Community

• 4. Promote a Strong Customer

Experience

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Community First Signature Programming

+ Fourteen one-of-a- kind programs unique to the Company and tailored to the tastes

• f each community.

+ Events are designed to generate traffic and sales. + Loyalty rewards for participation. + Tenant, community, and charity partnerships are a strong element of the Community First Initiative.

• Consumer loyalty
• Increased Sales
• Long-term value

creation for the Company

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YourWalkingClub.com

• Premier fitness program for RPT’s large

community centers that has universal appeal.

• Community partnerships are established

as sponsors to assist with running the weekly programs.

• Incentives for participation generate

interest and foster repeat visits to the center.

• Development of website,

yourwalkingclub.com, provides the ability to register, sign-in for weekly events, and track progress of over 500 participants at each club.

• Social media connects all

members across the portfolio

• Wellness tips/blog
• Customer experience tracking

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Leveraging Technology Is Making An Impact

The Company is broadening the shopping experience through the use of technology:

• 1. Dedicated Websites
• 2. Robust Social Media
• 3. Custom Applications
• 4. Targeted E-Blasts

All Community First campaigns use technology to generate interest, awareness, and the ability to survey participants. Custom applications create efficiencies and provide consumer tracking mechanisms.

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Community First Strategic Partnerships

• Retailers are encouraged to

participate in all Community First campaigns.

• Many of RPT’s tenants participate in

Community First campaigns at multiple locations, such as Whole Foods.

• Communities and schools are invited

to sponsor, co-host, and/or participate in events that have a strong community element.

• Charities are often benefactors of

signature event giveaways.

• All Community First initiatives have a

strong PR component that benefits all parties.

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36 Photos of Shops on Lane Avenue – Upper Arlington, OH 36

Senior Unsecured Debt (2018- 2025) 20% Line of Credit (2016) 1% Mortgage Loans (due various dates) 14% Jr. Subordinated Notes (2038)/Capital Lease Obligation 1% 7.25% Convertible Preferred Stock 5% Common Equity 59%

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Solid Capital Structure

Total Market Capitalization

• RPT has a total capitalization of $2.5

billion conservatively structured with $1.5 billion in common equity.

• Substantially all shares are owned by

REIT funds and other institutional investors.

• Debt to total capitalization is 35%.
• Secured debt to total capitalization is

14%.

• Debt-plus-preferred to total

capitalization is 39%.

$0 $50 $100 $150 $200 $250 $300 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+

Millions Mortgage Unsecured JV Debt-At Share

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Proactive Balance Sheet Management

• RPT has a staggered debt maturity profile with a weighted average term
• f 6.5 years.
• In 2014, the Company increased its borrowing power through the

expansion of its credit facility to $350 million and added $100 million in private placement debt.

Low Leverage Flexible Structure

Net Debt / Market Capitalization 35% Unencumbered Operating Assets / Unsecured Debt 2.9X Net Debt + Preferred / Market Capitalization 39% Fixed-Rate Debt / Total Debt 97% Net Debt to EBITDA 5.9X Secured Debt / Total Capitalization 14%

Strong Coverage Ample Liquidity

Interest Coverage 4.1X Revolving Line Availability $349 Fixed Charge Coverage 3.2X Prudential Capital Shelf Agreement $50

Mission Bay Plaza – Boca Raton, FL Hunter’s Square – Farmington Hills, MI Harvest Junction – Longmont, CO 39

Investment Grade Profile

On key credit metrics, RPT compares favorably to its investment-grade rated peers in the shopping center sector.

Town & Country Crossing – Town & Country, MO 40

Key Takeaways

• A high-quality shopping center

portfolio comprised of market dominant multi-anchored shopping centers with best-in-class retailers.

• An intelligent acquisition and capital

recycling program focused on attractive metropolitan markets to drive quality and growth.

• A robust redevelopment pipeline

featuring leading retail anchors, supplements organic growth and contributes to increasing earnings.

• Attractive risk profile with ample

liquidity to fund its business plan and grow its dividend.