Investor Presentation February 2015 31500 Northwestern Highway, - - PowerPoint PPT Presentation

31500 Northwestern Highway, Suite 300 Farmington Hills, Michigan 48334 248.350.9900 www.rgpt.com

Investor Presentation

February 2015

Taking Retail to New Heights

RPT Company Overview

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• Ramco-Gershenson Properties Trust owns and

manages interests in 80 market dominant, multi-anchored community shopping centers primarily in a dozen major metropolitan markets.

• The Company’s shopping centers are

tenanted by best-in-class national and regional retailers, including TJ Maxx, Marshalls, LA Fitness, Bed Bath & Beyond, The Home Depot, Nordstrom Rack, Ross Dress for Less, Kohl’s, and Stein Mart.

• Ramco-Gershenson’s centers average

260,000 square feet with five national anchors

• ften featuring the trade area’s leading

grocer, including Whole Foods, Publix, and Kroger, that generate average annual sales

• f approximately $515 per square foot.
• The Company maintains a strong balance

sheet with an investment grade profile and significant liquidity to support its growth initiatives highlighted by a net debt to EBITDA ratio of 5.9x.

Woodbury Lakes – Woodbury, MN

In Summary-2014 Accomplishments

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Bridgewater Falls, Hamilton, OH

• 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

• n average $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.

Ramco-Gershenson’s 2015 Business Plan

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Acquisitions/ Dispositions Core Operations Redevelopment

• Increase cash flow

through small shop lease-up and increased spreads on renewals.

• Strengthen top tenant

lineup, proactively addressing underperforming tenancies.

• Acquire shopping

centers with value- add opportunities.

• Sell non-core centers

to generate capital to fund business plan.

• Match funds in a

competitive acquisition environment.

• Replace

underperforming tenants with exciting draws.

• Create “Sense of

Place” to maintain relevance.

• Broaden customer

draw and increase market dominance.

• Same-Center NOI

growth of between 2.5% and 3.5%.

• Leasing spreads of 6%

to 8%.

• Occupancy of >95%.
• Selective acquisitions

with the opportunity to add value.

• Evaluate lowest 5% of

portfolio for sale

• pportunities.
• At least $50 million

investment each year.

• Stabilized returns of

10% to 11% on incremental costs.

CORE OPERATIONS

A. Focused on Market Dominant Community Centers B. RPT’s High-Quality Retailers C. A Community Focused Approach D. Managing for Sustainability E. Building Quality-Delivering Results

“Our commitment to improving portfolio quality and carefully managing our properties will remain a top priority in 2015.”

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Deerfield Towne Center – Mason, OH

Focused on Market Dominant Community Centers

Note: As of December 31, 2014. GLA and anchor count includes shadow anchor space.

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Dominant Multi-Anchored Community Centers Strong Demographics Creditworthy Tenants Comparable Leasing Spreads 6.3% 90% National/Regional 5-Mile Income of $78,000 5-Mile Population of 170,000 80% of Base Rent 5 Anchors Per Center Averaging 260,000 Square Feet

Shops at Old Orchard, West Bloomfield, MI

RPT’s High-Quality Retailers

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Note: As of December 31, 2014.

RPT’s Tenant Line-up Top 10 Tenants Exciting Retail Concepts

• The Company’s top

tenant line-up is dominated by national destination oriented retailers providing stability in any economic environment.

• The Company is focused
• n leasing to best-in-class

national retailers with strong credit and growth profiles.

• In addition to leading

national tenants, the Company leases to the most current regional and local concepts to strengthen each center’s merchandise mix.

1

4.5% of ABR

2 3 4 5 6 7 9 8 10

2.6% of ABR 2.5% of ABR 1.8% of ABR 1.8% of ABR 1.7% of ABR 1.6% of ABR 1.5% of ABR 1.5% of ABR 1.4% of ABR

A Community Focused Approach

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Front Range Village – Fort Collins, CO

Our Three Tiered Approach:

• 1. Merchandising

Right mix of best-in-class national tenants and exciting regional and local retailers that drive traffic to the center and are unique to each community’s tastes and interests.

• 2. Placemaking

Inviting environments to increase time spent at each center, improve shopper experience, and promote customer loyalty.

• 3. Marketing

Identify and create opportunities that along with our “RPT Signature Events” will solidify the center’s importance within the Community.

Managing for Sustainability

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

considering and responding to the impact of the Company’s business activities as it relates to its key stakeholders.

• The Company is aware of its presence in the community and the social and environmental

impact of owning and managing shopping centers. 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.
• Reduction in the use of potable water for irrigation by capturing run-off water supplies and

rain sensor installation.

• Reusing demolished portions of sites for parking lot bases and other structures.
• Utilizing energy efficient LED lighting with automatic dusk to dawn timers.
• Recycling milled asphalt for parking lot installation/improvement.

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

Increasing Average Base Rents

• 1.6%

1.4% 3.3% 3.0% 3.3%

• 2.0%
• 1.0%

0.0% 1.0% 2.0% 3.0% 4.0% 2010 2011 2012 2013 2014 Generating Same-Center NOI Growth $10.98 $11.32 $11.54 $12.35 $13.00 $10.70 $11.20 $11.70 $12.20 $12.70 $13.20 2010 2011 2012 2013 2014

Building Quality - Delivering Results

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RPT has successfully transformed its portfolio over the last five years evidenced by its commitment to ever increasing average base rents and generating strong same- center NOI growth.

ACQUISTIONS AND DISPOSTIONS

A. Focused on 12 Top Metropolitan Markets B. 2014 High-Quality Acquisitions C. Capital Recycling Drives Quality and Value

“Recycling Capital from lower quality assets into high-quality investments will be a strong driver of both NOI and NAV growth this year.”

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Woodbury Lakes – Woodbury, MN

Focused on 12 Top Metropolitan Markets

Minnesota #16 Minneapolis –

• St. Paul

3.2% of ABR

• St. Louis

#19 MSA 6.0% of ABR Chicago #3 MSA 4.1% of ABR Cincinnati #28 MSA 9.5% of ABR Denver #21 MSA 7.5% of ABR SE Michigan #14 MSA 24% of ABR Toledo #89 MSA 3.3% of ABR Atlanta #9 MSA 3.7% of ABR Jacksonville #40 MSA 5.9% of ABR Tampa Bay #18 MSA 5.8% of ABR SE Florida #8 MSA 11.3% of ABR Milwaukee #39 MSA 5.1% of ABR

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RPT’s Top Markets

 RPT’s top 12 metropolitan markets account for nearly 90% of its pro rata annualized base rents.  The Company is focused on top MSAs; 11 of the Company’s targeted 12 markets are in the top 40 MSAs in the US.  Taken together, the12 MSAs are home to 121 Fortune 500 company headquarters and 42.7 million people.

Michigan now accounts for only 29% of the Company’s rents.

2014 High-Quality Acquisitions

The Company invested $322 million in market dominant, multi-anchored shopping centers with significant value-add potential which builds earnings growth and enhances portfolio quality.

Woodbury Lakes – Woodbury, MN Buttermilk Towne Center – Crescent Springs, KY Bridgewater Falls - Hamilton, OH

Minnesota #16 Minneapolis – St. Paul Cincinnati #28 MSA Denver #21 MSA

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Front Range Village – Fort Collins, CO

ABR: $8.5 million $19.38 psf TOTAL GLA: 792,945 (Owned: 459,307) MAJOR TENANTS: ABR: $2.5 million $9.15 psf TOTAL GLA: 277.533 MAJOR TENANTS: ABR: $6.6 million $13.93 psf TOTAL GLA: 627,202 (Owned 503,502) MAJOR TENANTS: ABR: $5.7 million $21.38 psf TOTAL GLA: 317,603 (Owned 305,086) MAJOR TENANTS:

Quality Markers

• Avg. Base Rent,

psf of $15.96

• Avg. Household

Income of $85,500

Capital Recycling Drives Quality and Value

Nagawaukee Center, Milwaukee, WI

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Sold

$168 Million in Dispositions 8%-9% Cap Rate $1.2 Billion in High-Quality Centers 6.5%-7.5% Cap Rate

• 31 Shopping Centers
• 8.8 Million square feet
• $14.35 Avg. Rent Per Sq.

Foot

• $82,000 Avg. Household

Income

• 178,000 Avg.

Population

• 5+ Anchors per center
• 284,000 Avg. Square

Feet

• 22 Shopping Centers
• 2.7 Million square feet
• $10.03 Avg. Rent Per
• Sq. Foot
• $61,000 Avg.

Household Income

• 148,000 Avg.

Population

• 2 Anchors per center
• 135,000 Avg. Square

Feet

Acquired

RPT’s capital recycling

• ver the past five years

has resulted in a much higher-quality shopping center portfolio:

• Per Square Foot rental

growth of over 30%.

• Consistent Same

Center NOI Growth of

• ver 3%.
• Strong Demographic

Profile with Average Household Incomes of $78,000.

• An increase in Funds

from Operations of over 20%.

• An increase in NAV of

approximately 35%.

REDEVELOPMENT

A. Redevelopment and Releasing Projects B. Case Studies - Redevelopments C. Case Study - Development

“Value-add redevelopment is an important element in driving portfolio quality and NOI growth through reinvested capital from the sale of our non-core properties.”

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Lakeland Park Center – Lakeland, FL

Redevelopment And Releasing Projects

16 Project Location Estimated Project Costs Expected Return

• n Incremental

Investment = Expected Net Increase in Value Village Plaza Lakeland, FL $4.4 million 8%-9% $0.6 million Promenade at Pleasant Hill Duluth, GA $6.6 million 14%-15% $6.9 million 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 $19.5 million 9%-10% $7.9 million Total all Projects $51.1 million 10%-11% $25.6 million

• The Company is currently repositioning seven shopping centers for $51million, adding best-in-

class retailers, placemaking, common areas, and maximizing the community focus of each center.

• The projects will be completed over the next 12 -18 months producing a return on

incremental investment of 10-11% and delivering at least $5.1 million of NOI upon stabilization.

• Value creation of $25.6 million upon stabilization of projects representing a 50% appreciation
• n total costs.

Case Study - Redevelopment

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• Merchants’ Square is a large,

multi-anchored center in Carmel, Indiana, an affluent sub-market

• f Indianapolis.
• The shopping center is grocery-

anchored and encompasses 328,000 square feet.

• Flix Brewhouse (opening 2Q2015)

is the latest addition to the shopping center, which has undergone numerous improvements in the past three years. Value Creation

• Total project costs of $6.4 million

expected to produce an incremental return on investment

• f 10-11%.
• Value creation of $3.0 million.

Merchants’ Square Carmel, Indiana

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• Harvest Junction North and South

were acquired in the second quarter of 2012 encompassing 471,000 square feet.

• As part of the acquisition, the

Company acquired 15 acres of adjacent land to expand the shopping center.

• Multiple phase expansion to

include fashion and fast casual dining options as well as service uses. Value Creation

• Total project costs of $7.8 million

expected to produce an incremental return on investment of 9-10%.

• Value Creation of $3.6 million.

Harvest Junction Longmont (Boulder), Colorado

Case Study - Redevelopment

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• The Shoppes at Fox River was

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

• Phase II development of TJ Maxx,

ULTA, rue 21, Charming Charlie, and Hobby Lobby on 12 acres of land that was part of the initial acquisition.

• Phase III expansion on additional

10 acres encompassing 110,000 square feet. Value Creation

• Phase III project costs of $19.5

million expected to produce an incremental return on investment

• f 9-10%.
• Value Creation of $7.9 million.

The Shoppes at Fox River Waukesha (Milwaukee), Wisconsin

Case Study - Redevelopment

Possible Future Expansion

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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 to anchor Phase II of the project.

• Net incremental investment of $5.4

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

Case Study - Development

BALANCE SHEET

A. Solid Capital Structure B. Proactive Balance Sheet Management C. Investment Grade Profile

“Maintaining a strong balance sheet reduces risk and gives the Company the flexibility to be opportunistic in executing its business plan.”

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Shops on Lane Avenue – Upper Arlington, OH

Solid Capital Structure

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Note: As of December 31, 2014.

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 36%.
• Secured debt to total capitalization is

14%.

• Debt-plus-preferred to total

capitalization is 40%.

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%

Proactive Balance Sheet Management

$0 $50 $100 $150 $200 $250 $300 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027+ Millions Mortgage Unsecured JV RPT Debt Maturity by Year

New York Life

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• RPT has a staggered

debt maturity profile with a weighted average term of 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.

Note: As of December 31, 2014.

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

Investment Grade Profile

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River City Marketplace, Jacksonville, FL Hunter’s Square, Farmington Hills, MI

Low Leverage Flexible Structure Net Debt / Market Capitalization 36% Unencumbered Operating Assets/Unsecured Senior Debt 2.9X Net Debt + Preferred / Market Capitalization 40% Fixed-Rate Debt / Total Debt 96% Net Debt to EBITDA 5.9X Secured Debt / Total Capitalization 14% Strong Coverage Ample Liquidity Interest Coverage 3.9X Revolving Line Availability $336 Fixed Charge Coverage 3.0X NYL Investors, LLC (New York Life) Agreement $100 Prudential Capital Shelf Agreement $50

Harvest Junction, Longmont, CO Note: As of December 31, 2014.

Key Takeaways

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• Investing in a high-quality shopping

center portfolio comprised of large, market dominant shopping centers expected to produce strong rental and sustainable same-center NOI growth.

• An aggressive acquisition and

capital recycling program focused

• n attractive metropolitan markets

that will drive quality and growth.

• A robust redevelopment pipeline

and in-process developments featuring leading retail anchors, which will contribute to earnings growth.

• Attractive risk profile with ample

liquidity to fund its business plan and grow its dividend.

Town & Country Crossing, Town & Country, MO