Investor Presentation May/June 2011
Investment Highlights Superior shopping center portfolio in major metropolitan markets. Diverse, credit-quality tenant mix with strong grocery and destination anchors. Consistently improving operating metrics and accelerating leasing velocity. Significant balance sheet de-levering with manageable debt maturity schedule. Committed to building long-term shareholder value. 2
Company Overview • Listed on the NYSE in 1996. • Properties located primarily in the Eastern and Midwestern United States. • 89 retail shopping centers predominantly anchored by supermarket and/or national chain stores. • Over $2.0 billion in assets under management in twelve states. • $1.1 billion total capitalization. Source: Company filings as of March 31, 2011. 3
Operating Strategy- Core Portfolio and Markets
Operating Strategy - Core Portfolio • Centers predominantly located in metropolitan markets with strong demographics. • Resilient shopping center type, primarily grocery and value retail. • Multi-anchor format with strong regional and national destination retailers promoting stability and draw. • Commitment to value-added portfolio improvement. 5
Leading Metropolitan Markets • Approximately 90% of the total portfolio is located in 16 of the top 100 MSAs 1 in the Country. • Focus on strong trade area demographics that far exceed state wide averages. • High barrier to entry markets. Total Number of 89 Properties 2 Total GLA 20.6M Company owned GLA 15.7M 3 Mile Population 3 66,018 5 Mile Population 3 169,124 3 Mile Avg. HH $79,070 Income 3 5 Mile Avg. HH $80,069 Income 3 1 MSA per US Census Bureau. 6 2 Includes the acquisition of Heritage Place and the sale of Lantana in 2Q2011. 3 Per CoStar Group: 2010 data.
Competitive Advantage in Michigan and Florida High quality portfolio in SE Michigan • Largest owner and manager of shopping centers in Southeast Michigan 1 . • Majority of centers predominantly located in or near Oakland County, one of the wealthiest counties in the nation (per capita). • Current leased occupancy of 93.7%, versus total portfolio leased occupancy of 90.1%. • High-quality, multi-anchored centers with average total GLA of 250,000 square feet 2 . Total # of Properties 24 Gross Leasable Area 3 4.5M 5 Mile Population 4 228,224 5 Mile Avg. HH Income 4 $86,759 SE Michigan Significant ownership in SE Florida • Infill market locations with superior demographics. • Six Publix anchored centers generating sales of over $520 psf. • Large concentration of properties creates economies of scale. Total # of Properties 13 Gross Leasable Area 3 2.5M 5 Mile Population 4 198,195 5 Mile Avg. HH Income 4 $76,757 SE Florida 1 Source: CoStar Group: 2010 data. As defined by number of shopping centers owned. 7 2 Includes both company-owned and anchor owned space. 3 Includes company-owned space in wholly-owned and joint venture properties. 4 Source: CoStar Group: 2010 data.
Strong Anchor Tenant Mix • Diverse line-up of high-quality national and regional tenants account for 81% of total base rent. • Limited exposure to any single tenant. • Approximately 56% of centers are grocery anchored. • Average grocer sales of approximately $450 PSF. RPT’s top tenants 2 Top tenant exposure (peers) 1 Credit Rating No. of % of Annualized 10.3% EQY S&P/Moody’s Tenant Stores Base Rent T.J. Maxx/Marshalls A/A3 20 3.9% REG 4.5% Publix NR/NR 12 3.0% Home Depot BBB+/Baa1 3 2.0% DDR 4.3% Kmart/Sears BB-/Ba2 6 1.8% RPT 3.9% Dollar Tree NR/NR 29 1.8% OfficeMax B/B1 11 1.8% FRT 2.6% Jo-Ann Fabrics NR/NR 6 1.7% Burlington Coat NR/NR 5 1.6% WRI 2.3% Staples BBB/Baa2 10 1.5% Best Buy BBB-/Baa2 5 1.5% 1 Source: Peer company filings as of March 31, 2011, based on annualized minimum rents. 2 Source: Latest tenant filings per CreditRiskMonitor for the quarter ended March 31, 2011. Includes the 8 combined wholly owned and joint venture portfolio.
Ramco’s Long-Term Business Strategy
Executing on Three-year Strategic Plan- Commitment to Long-term Shareholder Value Goals Strategy • Aggressively lease vacant space and replace underperforming retailers to drive Continually improve the occupancy and increase average base rents. quality of the shopping • Sell non-core shopping centers and/or land, recycling capital into higher quality properties center portfolio to generate with dominant anchors in targeted metropolitan markets. predictable and sustainable • Expand geographic footprint and reduce concentration in Michigan portfolio. earnings and NAV growth. • Undertake value-add redevelopments and pursue developments on a selective basis with attractive risk-adjusted returns. • Further strengthen the Pursue a strategy of low leverage and unencumbered assets. • balance sheet and Pay down debt with proceeds from sales of shopping centers, land and outparcels. improving liquidity. • Achieve consistently improving debt metrics. • Streamline corporate Focus on core business fundamentals to achieve long-range financial and operational structure and position goals. • RPT as a top tier Ensure operational efficiencies. shopping center REIT. • Continue to reduce G & A as a percentage of revenue. 10 10
Goal-Continually Improve the Quality of the Portfolio Strategy: Aggressively lease our shopping centers to achieve positive same-center NOI each year and increase occupancy to 94%. The Plan: • Fortify regional leasing teams with additional agents and canvassers to increase leasing velocity. • Institute new short-form lease agreement reducing cost and time spent on lease negotiations. • Retain high percentage of existing expiring tenancies. 11
Focus on Operating Metrics Improving Cash NOI 2011 Operating Statistics - Projections 1Q '10 2Q '10 3Q '10 4Q '10 1Q'11 • Leased occupancy of 91%-92%. -0.1% • Tenant retention rate of > 77%. • New lease signings increase of 10% - 15% -1.0% above 2010 level. -1.5% -1.5% • Same Center NOI of between 1.0% to -1.0%. -1.8% Accelerating Leasing Velocity • The company achieved its highest level of new lease signings and renewals during 2010. 2010 Activity Leases Signed 141 leases/849,000 SF Anchor Leases Signed 13 leases/354,000 SF Shop Tenancy Signed 128 leases/495,000 SF Renewals: 203 of 268 Expirations 75.7% Retention 12
Goal-Continually Improve the Quality of the Portfolio Strategy: Sell non-strategic shopping centers and recycle capital into high- quality properties in geographically diverse markets. The Plan: • Completed thorough review of existing portfolio and identified specific shopping centers and outparcels for potential sale. • Non-core disposition candidates not predominantly distressed. • Goal is to acquire $50 million to $75 million above asset dispositions with the following characteristics: • Metro markets promoting geographic diversification. • Superior demographic/profile. • Market dominant community centers with grocery or discount anchor component. • Competitive pricing with upside potential. 13
Goal-Continually Improve the Quality of the Portfolio Strategic Acquisition: Liberty Square in Wauconda (Chicago), Illinois Investment Highlights: • Located in targeted Chicago MSA market. • Number one grocer in Illinois with very strong sales (Jewel- Osco). • Extremely high average household incomes. Acquisition Highlights: • 107,000 SF grocery-anchored community shopping center. • 55,000 SF Jewel-Osco Supermarket currently generating sales of over $650 PSF. • 3 mile trade area population/average household income: 28,325/$111,000. • Opportunity for lease-up of small shop space and sell net leased national credit outlots with flat rents. 14
Goal-Continually Improve the Quality of the Portfolio Strategic Acquisition: The Shoppes at Fox River in Waukesha (Milwaukee), Wisconsin Investment Highlights: • Growing trade area. • Close proximity to existing assets. • Geographic diversification at an attractive price. Acquisition Highlights: • 136,000 SF grocery-anchored community center in Milwaukee MSA market, shadow anchored by 132,000 SF Target. • 61,045 SF Pick ‘n Save Supermarket currently generating sales of over $480 PSF. • 3 mile trade area population/average household income: 59,242/$77,941. • Opportunity for redevelopment/expansion. 15
Goal-Continually Improve the Quality of the Portfolio Strategic Acquisition: Heritage Place, Creve Coeur (St. Louis), Missouri Investment Highlights: • High-end specialty grocery- anchored center. • Multiple creditworthy mid- box anchors. • Attractive portfolio expansion market. Acquisition Highlights: • 269,000 SF grocery-anchored community center in St. Louis MSA market. • Anchors include Dierbergs (high-end specialty grocery), Marshalls, T.J. Maxx, OfficeMax, and Petco. • 3 mile trade area average population/household income: 57,913/$96,115. • 90.4% occupied, with immediate lease-up potential. 16
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