NAREIT Annual Convention Corporate Presentation November 19-21, - - PowerPoint PPT Presentation

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NAREIT Annual Convention Corporate Presentation November 19-21, - - PowerPoint PPT Presentation

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Financial Data as of September 30, 2008 NAREIT Annual Convention Corporate Presentation November 19-21, 2008 Financial Data as of September 30, 2008 Page 0 Company Overview Ramco-Gershenson is a shopping center REIT located in Farmington

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Financial Data as of September 30, 2008 Financial Data as of September 30, 2008

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NAREIT Annual Convention Corporate Presentation November 19-21, 2008

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Financial Data as of September 30, 2008 Financial Data as of September 30, 2008

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Company Overview

  • Community shopping center portfolio anchored by

leading national credit tenants including grocery stores and discount department stores that provide everyday goods and services

  • Geographic concentration in the Midwest, Southeast and

Mid-Atlantic United States

  • Focused on maximizing the potential of our existing

portfolio as well as the selective acquisition and development of additional shopping centers

Ramco-Gershenson is a shopping center REIT located in Farmington Hills, Michigan. Our goal is to generate long-term shareholder value through the ownership and management of a premier shopping center portfolio.

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Financial Data as of September 30, 2008 Financial Data as of September 30, 2008

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Portfolio Summary

89 Shopping Centers in 13 States

  • 55.5% Midwest
  • 39.7% Southeast
  • 4.8% Mid-Atlantic

20.1 Million Square Feet of GLA

  • 88 Community Centers
  • 1 Enclosed Power Center

Same Center Portfolio 95.3% occupied

Corporate Office Regional Office Portfolio Shopping Centers New Developments

Canton Novi Taylor Auburn Hills Madison Heights

225,000 Avg. GLA per center 2.4 Avg. Anchors per center

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Strong Markets

Michigan Florida Ohio Georgia Indiana Wisconsin

The majority of RPT’s shopping centers are located in densely populated markets with above average income levels.

40% 31% 8% 6% 3% 2% $75,565 $69,672 $64,263 $83,953 $96,604 $58,892 205,134 158,609 154,588 126,929 165,247 271,498

Location

  • Est. Population [1]
  • Est. HH Income[1]

% of Base Rent

[1]Source CoStar Group. Numbers represent averages for 5 Mile Trade Area.

Total Portfolio 100% $77,016 193,522

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Financial Data as of September 30, 2008 Financial Data as of September 30, 2008

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Low-Risk Fundamentals

  • Not dependent on any one facet of business plan to

grow

  • Limited exposure to debt maturities for the foreseeable

future

  • No tenant accounts for more than 3.6% of annualized

base rents

  • Contracted rent increases ensures growth of rental

stream Ramco-Gershenson seeks to mitigate risk through a diverse business plan, limited tenant exposure, predictable revenue streams and manageable debt maturities.

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Diversified Tenant Mix

  • Limited exposure to any single retailer
  • 81% of base rental revenues from national and

regional tenants

67% 14% 19% National 67% Regional 14% Local 19%

Major Tenants: Annualized Base Rent % of Company Base Rent Revenues

TJ Maxx/Marshalls Publix Home Depot Wal-Mart OfficeMax Kmart Jo-Ann PetSmart Michaels $ 5,676,678 $ 4,534,891 $ 3,259,492 $ 3,232,787 $ 3,173,220 $ 2,717,603 $ 2,480,777 $2,283,195 $2,187,349 3.6% 2.9% 2.1% 2.0% 2.0% 1.7% 1.6% 1.4% 1.4%

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Clear Business Strategy

The Company is focused on a dynamic business model adaptable to changes in an evolving real estate market.

Experienced Management Team Quality Portfolio Contracted Step Rents Stable NOI Growth Off-Balance Sheet Joint Venture Strategy and Capital Recycling to Self Fund Business Plan Long-Term Shareholder Value Development and Redevelopment Pipeline Generate Attractive Returns and Significant Value

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Development Strategy

  • Proven development track record
  • Conservative project selection
  • Off-balance sheet structures and phasing of projects

limits risk

  • Lengthened timetables in response to current retail

environment Our development program is designed to generate attractive returns and create long-term shareholder value.

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Financial Data as of September 30, 2008 Financial Data as of September 30, 2008

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Development Pipeline

Property/Location Project Description RPT Ownership % Projected Stabilization Date Stabilized Return

  • n Cost

Projected Stabilized NOI Projected Cost Capital Required Thru 2008 2009 2010 2011 Northpointe Town Center - Jackson, MI 550,000 SF town center project, currently in the entitlement phase 100% Q2 2011 8.8% $6.6 $74.2 $0.1 $0.7 $43.1 $28.7 Rossford Pointe - Rossford, OH 70,000 SF project includes Office Depot, PetSmart 100% Q4 2009 9.1% $0.8 $8.5 $0.1 $2.1 $0.0 $0.0 Hartland Towne Square - Hartland Twp., MI 500,000 SF power center project to include Meijer and Menards, plus future phases 20% Q2 2011 7.0% $4.0 $56.5 $3.9 $15.3 $20.7 $3.6 The Town Center at Aquia - Stafford, VA

Includes pro-rata portion of net book value of existing center and applicable fixed cost allocation.A

Mixed-use project Phase 1 - 114,340 office building and other uses 20%* Q2 2009 8.7% $2.2 $25.8 $1.3 $2.4 $2.4 $0.0 20%* Q3 2011 8.1% $7.9 $96.7 $1.1 $2.0 $61.6 $12.8 Future phases - 446,563 SF including retail, office, hotel and residential 20%* $16.5 8.2% $10.1 $139.1 $2.4 $4.5 $64.0 $12.8 Gateway Commons - Lakeland, FL 375,000 SF power center project 20%* Q3 2011 9.0% $5.7 $63.0 $0.4 $14.3 $26.2 $8.7 RPT Share of Current Developments

*Proposed off-balance sheet project.

8.6% $11.3 $134.4 $1.5 $9.6 $65.3 $33.7

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Hartland Towne Square Hartland, Michigan

  • 500,000 square foot community center development

anchored by a Meijer department store and a Menards home improvement store

  • Additional phases to be constructed after leasing
  • bjectives are met
  • Superior access off newly-constructed US-23/M-59

interchange

  • Regional retail hub that includes Target and Wal-Mart
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The Town Center at Aquia Stafford, Virginia

  • Redevelopment of existing community shopping center
  • High growth corridor, 25 miles south of Washington, D.C.,

5 miles south of Quantico

  • Phase One-105,000 SF Class-A office building, over 80%
  • ccupied with Northrop Grumman as lead tenant
  • Future phases will include retail and entertainment uses as

well as additional office space, a residential component and a hotel

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Gateway Commons Lakeland Florida

  • 375,000 SF community center located adjacent to RPT’s

300,000 SF Shoppes of Lakeland center anchored by Target, Michaels and Ashley Furniture

  • Superior visibility and access from Interstate I-4
  • Part of a growing trade area of 230,000 people within five

miles, expected to increase by 8.0% over the next five years

  • Development opportunity in response to tenant demand,

which could not be accommodated in Shoppes of Lakeland

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Redevelopment Strategy

  • Since 1996, the Company has undertaken 50 value-added

shopping center redevelopments totaling $140 million and producing an average return on new dollars invested of approximately 12.0%

  • Projects designed to improve the credit-quality of the income

stream, broaden the tenant mix and expand the trade-area draw of the center

  • Pipeline of 12 active projects each with commitments from a

new anchor tenant

Throughout its history, RPT has capitalized on value-added redevelopment opportunities to generate superior returns from its shopping center portfolio.

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Redevelopment Pipeline

Project Name RPT Ownership % Projected Stabilization Date Stabilized Return

  • n Cost

Projected Stabilized NOI Projected Cost Capital Required thru 2008 Capital Required 2009 Capital Required 2010 Hoover Eleven - Warren, MI Expanding Kroger Supermarket by 12,000 SF. 100% Q4 2008 127.9% $0.1 $0.1 $0.1 $0.0 $0.0 Oakbrook Square - Flint, MI Adding a 55,000 SF Hobby Lobby, replacing vacancy and build-out of additional space. 100% Q4 2008 11.0% $0.4 $3.4 $2.3 $0.0 $0.0 Rivertowne Square - Deerfield Beach, FL Adding a 60,000 SF Beall's Department Store. 100% Q1 2009 13.8% $0.2 $1.6 $0.6 $0.6 $0.0 Clinton Valley - Sterling Heights, MI Adding a 58,852 SF Hobby Lobby. 100% Q1 2009 13.8% $0.1 $1.0 $0.2 $0.3 $0.0 Southbay - Osprey, FL Adding CVS Drug Store, relocating tenants, retenanting space and demolishing vacated space. 100% Q2 2009 15.2% $0.1 $1.0 $0.2 $0.6 $0.0 Holcomb - Roswell, GA Add national theater operator in 25,000 SF. 100% Q4 2009 11.6% $0.3 $2.5 $0.1 $2.3 $0.0 West Allis - West Allis, WI Relocating existing tenants, adding Burlington Coat Factory, adding retail and upgrading façade. 100% Q1 2010 9.1% $1.1 $12.0 $1.2 $5.5 $1.6 Paulding Pavilion - Hiram, GA Replacing and expanding former Publix space with Sports Authority and Staples, adding 4,000 SF outlot building. 20% Q4 2008 10.9% $1.0 $8.8 $0.6 $0.0 $0.0 Market Plaza - Glen Ellyn, IL Adding a 19,849 SF Staples. 20% Q1 2009 15.0% $0.2 $1.6 $0.4 $0.3 $0.0 Troy Marketplace - Troy, MI Retenanting 97,000 SF Home Expo with LA Fitness (which has opened) and additional mid-box uses. 30% Q4 2009 21.0% $2.1 $9.8 $0.4 $5.2 $0.0 Old Orchard - West Bloomfield, MI Adding 37,000 SF specialty grocer Plum Market as well as other upscale tenants 30% Q4 2009 12.0% $1.2 $9.6 $1.5 $5.2 $0.0 Collins Pointe Plaza - Cartersville, GA Retenanting Winn-Dixie, building additional outlot and small-shop retail space. 20% Q1 2010 15.1% $0.7 $4.7 $0.0 $3.5 $1.2 RPT Share of Current Redevelopments 12.3% $3.7 $30.5 $5.6 $13.3 $1.8

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Active Redevelopment-West Allis West Allis, Wisconsin

Project Summary: Replacing underperforming hard goods tenant with national soft goods

  • retailer. Upgrading appearance of

center utilizing tax incremental financing provided by the City. Demographics: 3 Mile Stats Population: 172,813

  • Avg. H.H. Income: $53,032

5 Mile Stats Population: 447,281

  • Avg. H.H. Income: $52,005
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Financial Data as of September 30, 2008 Financial Data as of September 30, 2008

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Active Redevelopment-Old Orchard West Bloomfield, Michigan

Project Summary: Complete upgrade of existing community shopping center replacing former Farmer Jack space with 37,000 SF upscale specialty grocer Plum Market. Demographics: 3 Mile Stats Population: 56,100

  • Avg. H.H. Income: $138,838

5 Mile Stats Population: 145,964

  • Avg. H.H. Income: $129,435
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Asset Management Strategy

We are committed to generating internal growth by improving existing rental rates and increasing the occupancy in our shopping center portfolio.

  • Historically have renewed over 75% of expiring leases,

achieving rental increases of 8-10% over prior rents paid

  • Compounded average portfolio rental rate growth of 5%
  • ver the last five years
  • Superior operating expense recovery ratios of between

98% and 99% annually

  • 95.3% occupancy rate for non-redeveloped centers
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Steady Rental Rate Growth

Rent Increases: Releasing and Retenanting

$13.31 $13.57 $13.83 $13.19 $13.88 $14.94 $15.33 $14.79 $14.57 $15.10 $16.05 $16.43

2005 2006 2007 Thru 3Q2008

Expiring Base Rent New Base Rent Portfolio Average Base Rent

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Co-Investment Acquisition Strategy

  • Maximize return on investment
  • Generate recurring fee income
  • Broaden ownership and market presence

Our joint venture acquisition strategy is designed to...

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Co-Investment Acquisition Strategy

The Company has acquired approximately $900 million in shopping center assets over four years consistently generating superior returns by capitalizing

  • n value-added redevelopment opportunities.

($ in thousands) $1,000 $3,000 $5,000 $7,000 $9,000 $11,000 Recurring Fees $941 $1,377 $2,259 $3,362 NOI Contribution to FFO 4,237 5,524 6,608 7,489 2005 2006 2007 2008

Debt , $557,013 Ramco's Equity, $113,681 JV Partner's Equity, $387,124

Joint Venture Capital Structure Fees for Joint Ventures

Annualized Return on Investment 10.4%

$6,901 $8,867 $10,851 $5,178

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Co-Investment Acquisition Strategy

Paulding Pavilion Hiram, Georgia Acquired April 2006

After Before

Project Summary: Purchased vacant shopping center as part of opportunistic joint venture with Heitman LLC. Replaced and expanded former Publix Supermarket with Sports Authority and Staples. Also added retail out lot space.

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Manageable Debt Maturities

Ramco-Gershenson is well-positioned in the current lending environment with limited exposure to maturing debt for the foreseeable future.

Loan Lender or Servicer Balance Maturity Date Current Acitvity Beacon Square Huntington Bank $8,458 November-08 Secured Term Loan KeyBank $40,000 December-08 Gaines Marketplace Huntington Bank $7,631 March-09 West Oaks II/Spring Meadows Travelers Insurance $23,890 December-09 Unsecured Revolving Credit Facility KeyBank, as agent $105,000 December-09

($ in thousands)

At our option, can be extended until December of 2010. Extended until November of 2009. Refinance or place in revolving credit facility. Security includes three fully-leased, mult-anchored properties. Current loan to value of 30%. Place in revolving credity facility or secure permanent financing. Secured by three assets. Extended until March of 2009. In the process

  • f securing permanent financing.
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Meeting Capital Requirements

1 63% 2 37%

SOURCES OF CAPITAL USES OF CAPITAL

Ramco-Gershenson’s capital requirements to fund its 2008 and 2009 business plan are modest at approximately $30 million.

Net Sources of Capital Net Uses of Capital 1 Revolving Line of Credit Availability 33,000 $ 1 Equity Requirements Current Redevelopments 18,900 $ 2 Refinancing of West Oaks II and Spring Meadows 20,000 2 Equity Requirements New Developments 11,100 3 Aquia Office Building Financing 15,000 30,000 $ 68,000 $ ($ in thousands) 1 49% 3 22% 2 29%

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$0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2004 2005 2006 2007 2008

$0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2004 2005 2006 2007 2008

Secure Dividend

2004 2005 2006 2007 2008E FFO per share $2.07 $2.42 $2.54 $2.56 $2.48* Less Distributions $1.68 $1.75 $1.79 $1.85 $1.85 Retained FFO $0.39 $0.67 $0.75 $0.71 $0.63 FFO Payout Ratio 81.2% 72.3% 70.6% 72.2% 74.6%

FFO Payout FFO Payout

2004 2005 2006 2007 2008E FAD per share $1.99 $2.17 $2.29 $2.41 $2.34 Less Distributions $1.68 $1.75 $1.79 $1.85 $1.85 Retained FAD $0.31 $0.42 $0.50 $0.56 $0.49 FAD Payout Ratio 84.4% 80.8% 78.1% 76.8% 79.1%

FAD Payout FAD Payout

Retained FFO Distributions

*Consensus Estimate

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Financial Data as of September 30, 2008 Financial Data as of September 30, 2008

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Proven Management Team

Ramco-Gershenson’s management team has an average of over 28 years of experience in the real estate industry.

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Outstanding Investment

  • Exceptional assets in desirable markets
  • Well-defined business plan with manageable risk
  • Secure dividend
  • Multiple discount to peer group