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Press Release

Ramco-Gershenson Properties Trust Reports Financial and Operating Results for the Second Quarter 2017

Company Release - 8/1/2017 4:52 PM ET

FARMINGTON HILLS, Mich., Aug. 01, 2017 (GLOBE NEWSWIRE) -- Ramco-Gershenson Properties Trust (NYSE:RPT) today announced its financial and operating results for the three and six months ended June 30, 2017.

SECOND QUARTER FINANCIAL AND OPERATING RESULTS:

  • Net income attributable to common shareholders of $0.05 per diluted share, compared to $0.32 per diluted share, for the same period in 2016, reflecting lower gains on land sales during the second quarter of 2017.
  • Operating Funds from Operations (“Operating FFO”) of $0.35 per diluted share, compared to $0.35 per diluted share for the same period in 2016.
  • Generated same property NOI growth with redevelopment of 1.1% for the three months ended June 30, 2017, positively impacted by strong minimum rent growth of 2.9% offset by lower comparable recovery income and credit adjustments recognized in the same period in 2016.
  • Signed 38 comparable leases encompassing 234,503 square feet at a positive leasing spread of 7.1% with an average base rent of $16.53 per square feet.
  • Posted portfolio leased occupancy of 93.7%, compared to 95.0% for the same period in 2016.

“Our second quarter results reflect anticipated short-term moderation in our operating performance. We are maintaining same-property NOI and operating FFO guidance for the year,” said Dennis Gershenson, President and Chief Executive Officer. “Subsequent to quarter-end we closed, or expect to close within the next 30 days, an additional $75 million in planned shopping center dispositions, bringing our year-to-date sales to $104 million and reducing our rental exposure to the state of Michigan to less than 22%, in line with our stated goal.”

FINANCIAL RESULTS:

For the three months ended June 30, 2017:

  • Net income available to common shareholders of $4.4 million, or $0.05 per diluted share, compared to $25.7 million, which included a $19.8 million gain on land sales, or $0.32 per diluted share for the same period in 2016. 
  • Funds from Operations (“FFO”) of $30.4 million, or $0.35 per diluted share, compared to $32.1 million, or $0.36 per diluted share for the same period in 2016.
  • Operating FFO of $31.0 million, or $0.35 per diluted share, compared to $30.8 million or $0.35 per diluted share for the same period in 2016. 

For the six months ended June 30, 2017:

  • Net income available to common shareholders of $15.9 million, or $0.20 per diluted share, compared to $35.9 million, or $0.45 per diluted share for the same period in 2016. 
  • Funds from Operations (“FFO”) of $61.2 million, or $0.69 per diluted share, compared to $61.8 million, or $0.70 per diluted share for the same period in 2016.
  • Operating FFO of $61.6 million, or $0.70 per diluted share, compared to $60.4 million or $0.69 per diluted share for the same period in 2016. 

BALANCE SHEET METRICS:

  • Net debt to EBITDA of 7.0X, interest coverage of 3.7X, and fixed charge coverage of 3.0X. Including funds held in escrow of $26.1 million for two asset sales, net debt to EBITDA would have been 6.9X.
  • Weighted average cost and term of debt of 3.84% and 5.6 years, respectively.

INVESTMENT ACTIVITY:

Dispositions

Subsequent to quarter-end, the Company sold or placed under contract four Michigan shopping centers for $69.3 million. The Company also sold a Walgreen’s Data Center in Mount Prospect, Illinois for $6.2 million.

The Michigan Properties sold, or placed under contract, are:

Clinton Valley, Sterling Heights, 205,000 square feet anchored by Hobby Lobby and Office Depot
Gaines Marketplace, Gaines Township, 60,000 square feet anchored by Staples
New Towne Plaza, Canton, 193,000 square feet anchored by Kohl’s and JoAnn
Roseville Plaza, Roseville, 77,000 square feet anchored by Marshalls and Dollar Tree

Year-to-date the Company has sold or placed under contract to sell, seven non-core properties for a total of $104.0 million, including six Michigan shopping centers for a total of $97.8 million.

Redevelopment

At June 30, 2017, the Company's active redevelopment pipeline consisted of 9 projects with an estimated total cost of $86.5 million, which are expected to stabilize over the next two years at a weighted average return on cost of between 9% - 10%.

The Company’s redevelopment pipeline includes the following strategic new projects:

  • Woodbury Lakes - Woodbury, Minnesota - The Company finalized plans for the expansion and relocation of H&M to a strategic 20,000 square foot store and the addition of 44,000 square foot Alamo Drafthouse Cinema.  Construction on the initial phase of this multi-year redevelopment will begin in August of 2017.  The project will also feature a newly designed and remerchandised Main Street.   Woodbury Lakes is the premier regional retail destination in the eastern Minneapolis/St. Paul area.  The cost of the initial phase of the redevelopment is estimated at $22.8 million.
  • Front Range Village - Fort Collins (Denver MSA), Colorado - The Company initiated its Phase I site densification project, which will include 15,000 square feet of premium service and restaurant space, numerous placemaking improvements, and a new TruFit fitness center in 28,000 square feet. Phase I is expected to cost $11.4 million with a projected stabilization in the second quarter of 2018.

DIVIDEND:

In the second quarter, the Company declared a regular cash dividend of $0.22 per common share for the period April 1, 2017 through June 30, 2017 and a Series D convertible perpetual preferred share dividend of $0.90625 per share for the same period.  The dividends were paid on July 3, 2017 to shareholders of record as of June 20, 2017.

GUIDANCE:
The Company has affirmed its 2017 Operating FFO guidance of $1.34 to $1.38 per diluted share and its same-property with redevelopment NOI growth guidance of 2.5% to 3.5%.

CONFERENCE CALL/WEBCAST:

Ramco-Gershenson Properties Trust will host a live broadcast of its second quarter conference call on Wednesday, August 2, 2017 at 1:00 p.m. eastern time, to discuss its financial and operating results as well as its 2017 guidance.  The live broadcast will be available on-line at www.rgpt.com and www.investorcalendar.com and also by telephone at (877) 407-9205, no pass code needed.  A replay will be available shortly after the call on the aforementioned websites (for ninety days) or by telephone at (877) 481-4010, (Conference ID: 15997) through August 9, 2017.

SUPPLEMENTAL MATERIALS:

The Company’s quarterly financial and operating supplement is available on its corporate web site at www.rgpt.com.  If you wish to receive a copy via email, please send requests to dhendershot@rgpt.com.

ABOUT RAMCO-GERSHENSON PROPERTIES TRUST:

Ramco-Gershenson Properties Trust (NYSE:RPT) is a premier, national publicly-traded shopping center real estate investment trust (REIT) based in Farmington Hills, Michigan.  The Company's primary business is the ownership and management of regional dominant and urban-oriented, infill shopping centers in key growth markets in the 40 largest metropolitan markets in the United States.  At June 30, 2017, the Company owned interests in and managed a portfolio of 64 shopping centers, one property held for sale and two joint venture properties. At June 30, 2017, the Company's consolidated portfolio was 93.7% leased.  Ramco-Gershenson is a fully-integrated qualified REIT that is self-administered and self-managed. For additional information about the Company please visit www.rgpt.com or follow Ramco-Gershenson on Twitter @RamcoGershenson and facebook.com/ramcogershenson/.

This press release may contain forward-looking statements that represent the Company’s expectations and projections for the future. Management of Ramco-Gershenson believes the expectations reflected in any forward-looking statements made in this press release are based on reasonable assumptions. Certain factors could occur that might cause actual results to vary, including deterioration in national economic conditions, weakening of real estate markets, decreases in the availability of credit, increases in interest rates, adverse changes in the retail industry, our continuing ability to qualify as a REIT and other factors discussed in the Company’s reports filed with the Securities and Exchange Commission.

 
 
RAMCO-GERSHENSON PROPERTIES TRUST
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
     
  June 30, 2017 December 31, 2016
   
ASSETS    
Income producing properties, at cost:    
Land $415,694  $374,889 
Buildings and improvements 1,853,221  1,757,781 
Less accumulated depreciation and amortization (368,292) (345,204)
Income producing properties, net 1,900,623  1,787,466 
Construction in progress and land available for development or sale 68,853  61,224 
Real estate held for sale 13,837  8,776 
Net real estate 1,983,313  1,857,466 
Equity investments in unconsolidated joint ventures 2,798  3,150 
Cash and cash equivalents 4,798  3,582 
Restricted cash and escrows 31,819  11,144 
Accounts receivable, net 25,842  24,016 
Acquired lease intangibles, net 76,328  72,424 
Other assets, net 93,645  89,716 
TOTAL ASSETS $2,218,543  $2,061,498 
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
Notes payable, net 1,197,414  1,021,223 
Capital lease obligation 1,066  1,066 
Accounts payable and accrued expenses 53,982  57,357 
Acquired lease intangibles, net 67,237  63,734 
Other liabilities 6,294  6,800 
Distributions payable 19,654  19,627 
TOTAL LIABILITIES 1,345,647  1,169,807 
     
Commitments and Contingencies    
     
Ramco-Gershenson Properties Trust ("RPT") Shareholders' Equity:    
Preferred shares, $0.01 par, 2,000 shares authorized: 7.25% Series D Cumulative Convertible Perpetual Preferred Shares, (stated at liquidation preference $50 per share), 1,849 shares issued and outstanding as of June 30, 2017 and December 31, 2016 $92,427  $92,427 
Common shares of beneficial interest, $0.01 par, 120,000 shares authorized, 79,345 and 79,272 shares issued and outstanding as of  June 30, 2017 and December 31, 2016, respectively 793  793 
Additional paid-in capital 1,159,197  1,158,430 
Accumulated distributions in excess of net income (401,179) (381,912)
Accumulated other comprehensive income 1,074  985 
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO RPT 852,312  870,723 
Noncontrolling interest 20,584  20,968 
TOTAL SHAREHOLDERS' EQUITY 872,896  891,691 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,218,543  $2,061,498 


  
  
RAMCO-GERSHENSON PROPERTIES TRUST 
CONSOLIDATED STATEMENTS OF OPERATIONS 
(In thousands, except per share amounts) 
        
  Three Months Six Months 
  Ended June 30, Ended June 30, 
  2017 2016 2017 2016 
REVENUE         
Minimum rent $50,797  $48,554  $100,234  $96,950  
Percentage rent 225  138  463  440  
Recovery income from tenants 14,841  16,032  31,732  32,778  
Other property income 1,126  914  2,232  1,872  
Management and other fee income 73  245  226  355  
TOTAL REVENUE 67,062  65,883  134,887  132,395  
          
EXPENSES         
Real estate tax expense 10,730  11,132  21,723  21,441  
Recoverable operating expense 6,431  6,672  14,039  14,751  
Non-recoverable operating expense 1,242  564  2,390  1,957  
Depreciation and amortization 23,335  22,714  46,152  46,561  
Acquisition costs   4    63  
General and administrative expense 6,372  5,683  12,823  11,288  
Provision for impairment 820    6,537    
TOTAL EXPENSES 48,930  46,769  103,664  96,061  
          
OPERATING INCOME 18,132  19,114  31,223  36,334  
          
OTHER INCOME AND EXPENSES         
Other expense, net (424) 198  (735) (150) 
Gain on sale of real estate   19,799  11,375  26,324  
Earnings from unconsolidated joint ventures 55  109  141  218  
Interest expense (11,486) (11,376) (22,285) (22,678) 
Other gain on unconsolidated joint ventures   215    215  
INCOME BEFORE TAX 6,277  28,059  19,719  40,263  
Income tax provision (25) (39) (53) (101) 
          
NET INCOME 6,252  28,020  19,666  40,162  
Net income attributable to noncontrolling partner interest (147) (659) (462) (956) 
NET INCOME ATTRIBUTABLE TO RPT 6,105  27,361  19,204  39,206  
Preferred share dividends (1,675) (1,675) (3,350) (3,350) 
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $4,430  $25,686  $15,854  $35,856  
          
EARNINGS PER COMMON SHARE         
Basic $0.05  $0.32  $0.20  $0.45  
Diluted $0.05  $0.32  $0.20  $0.45  
          
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING         
Basic 79,344  79,233  79,322  79,214  
Diluted 79,529  86,027  79,525  79,413  


 
 
RAMCO-GERSHENSON PROPERTIES TRUST
FUNDS FROM OPERATIONS
(In thousands, except per share data)
        
 Three Months Ended
June 30,
 Six Months Ended
June 30,
 2017 2016 2017 2016
        
Net income$6,252  $28,020  $19,666  $40,162 
Net income attributable to noncontrolling partner interest(147) (659) (462) (956)
Preferred share dividends(1,675) (1,675) (3,350) (3,350)
Net income available to common shareholders4,430  25,686  15,854  35,856 
Adjustments:       
Rental property depreciation and amortization expense23,275  22,671  46,033  46,478 
Pro-rata share of real estate depreciation from unconsolidated joint ventures79  81  152  163 
Gain on sale of depreciable real estate  (18,473) (11,190) (24,747)
Gain on sale of joint venture depreciable real estate (1)  (26)   (26)
Provision for impairment on income-producing properties820    6,537   
Other gain on unconsolidated joint ventures (2)  (215)   (215)
FFO available to common shareholders28,604  29,724  57,386  57,509 
        
Noncontrolling interest in Operating Partnership (1)147  659  462  956 
Preferred share dividends (assuming conversion) (2)1,675  1,675  3,350  3,350 
FFO available to common shareholders and dilutive securities$30,426  $32,058  $61,198  $61,815 
        
Gain on sale of land  (1,326) (185) (1,577)
Severence expense554  80  567  80 
Acquisition costs  4    63 
OPERATING FFO available to common shareholders and dilutive securities$30,980  $30,816  $61,580  $60,381 
        
Weighted average common shares79,344  79,233  79,322  79,214 
Shares issuable upon conversion of Operating Partnership Units (1)1,917  1,936  1,917  1,969 
Dilutive effect of restricted stock185  206  203  199 
Shares issuable upon conversion of preferred shares (2)6,685  6,588  6,685  6,588 
Weighted average equivalent shares outstanding, diluted88,131  87,963  88,127  87,970 
        
FFO available to common shareholders and dilutive securities per share, diluted$0.35  $0.36  $0.69  $0.70 
        
Operating FFO available to common shareholders and dilutive securities per share, diluted$0.35  $0.35  $0.70  $0.69 
        
Dividend per common share$0.22  $0.21  $0.44  $0.42 
Payout ratio - Operating FFO62.9% 60.0% 62.9% 60.9%
        

(1) The total noncontrolling interest reflects OP units convertible 1:1 into common shares.

(2) Series D convertible preferred shares are paid annual dividends of $6.7 million and are currently convertible into approximately 6.7 million shares of common stock. They are dilutive only when earnings or FFO exceed approximately $0.25 per diluted share per quarter and $1.00 per diluted share per year.  The conversion ratio is subject to adjustment based upon a number of factors, and such adjustment could affect the dilutive impact of the Series D convertible preferred shares on FFO and earning per share in future periods.

Management considers funds from operations, also known as “FFO”, to be an appropriate supplemental measure of the financial performance of an equity REIT.  Under the NAREIT definition, FFO represents net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from sales of depreciable property and excluding impairment provisions on depreciable real estate or on investments in non-consolidated investees that are driven by measurable decreases in the fair value of depreciable real estate held by the investee, plus depreciation and amortization, (excluding amortization of financing costs).  Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis. In addition to FFO available to common shareholders,  we include Operating FFO available to common shareholders as an additional measure of financial and operating performance. Operating FFO excludes acquisition costs and periodic items such as impairment provisions on land available for development or sale, bargain purchase gains, and gains or losses on extinguishment of debt that are not adjusted under the current NAREIT definition of FFO.  We provide a reconciliation of FFO to Operating FFO.  FFO and Operating FFO should not be considered alternatives to GAAP net income available to common shareholders or as alternatives to cash flow as measures of liquidity. While we consider FFO available to common shareholders and Operating FFO available to common shareholders useful measures for reviewing our comparative operating and financial performance between periods or to compare our performance to different REITs, our computations of FFO and Operating FFO may differ from the computations utilized by other real estate companies, and therefore, may not be comparable.

 
 
RAMCO-GERSHENSON PROPERTIES TRUST
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(amounts in thousands)
 
Reconciliation of net income available to common shareholders to Same Property NOI
        
 Three Months Ended June 30, Six Months Ended June 30,
 2017 2016 2017 2016
Net income available to common shareholders$4,430  $25,686  $15,854  $35,856 
Preferred share dividends1,675  1,675  3,350  3,350 
Net income attributable to noncontrolling partner interest147  659  462  956 
Income tax provision25  39  53  101 
Interest expense11,486  11,376  22,285  22,678 
Earnings from unconsolidated joint ventures(55) (109) (141) (218)
Gain on sale of real estate  (19,799) (11,375) (26,324)
Gain on remeasurment of unconsolidated joint venture  (215)   (215)
Other expense, net424  (198) 735  150 
Management and other fee income(73) (245) (226) (355)
Depreciation and amortization23,335  22,714  46,152  46,561 
Acquisition costs  4    63 
General and administrative expenses6,372  5,683  12,823  11,288 
Provision for impairment820    6,537   
Amortization of lease inducements44  112  88  206 
Amortization of acquired above and below market lease intangibles, net(1,149) (822) (2,108) (1,557)
Lease termination fees    (33) (68)
Straight-line ground rent expense70    141   
Amortization of acquired ground lease intangibles6    12   
Straight-line rental income(378) (331) (1,188) (810)
NOI47,179  46,229  93,421  91,662 
NOI from Other Investments(3,769) (3,310) (6,301) (6,745)
Same Property NOI with Redevelopment43,410  42,919  87,120  84,917 
NOI from Redevelopment (1)(6,107) (5,186) (11,995) (10,528)
Same Property NOI without Redevelopment$37,303  $37,733  $75,125  $74,389 
        
        
(1) The NOI from Redevelopment adjustments represent 100% of the NOI related to Deerfield Towne Center, Hunter’s Square, Woodbury Lakes  and West Oaks, and a portion of the NOI related to specific GLA at Spring Meadows, The Shoppes at Fox River II, The Shops on Lane Avenue, Mission Bay, River City Marketplace, and Town & Country for the periods presented.  Because of the redevelopment activity, the center or specific space is not considered comparable for the periods presented and adjusted out of Same Property NOI with Redevelopment in arriving at Same Property NOI without Redevelopment.
        




 
RAMCO-GERSHENSON PROPERTIES TRUST
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(amounts in thousands)
 
 Three Months Ended June 30,
 2017 2016
Reconciliation of net income to proforma adjusted EBITDA   
Net income$6,252  $28,020 
Gain on sale of real estate  (19,799)
Depreciation and amortization23,335  22,714 
Provision for impairment820   
Severance expense554  80 
(Gain) on sale of joint venture real estate  (26)
Gain on remeasurement of unconsolidated joint ventures  (215)
Interest expense11,486  11,376 
Income tax provision25  39 
Acquisition costs  4 
Adjusted EBITDA42,472  42,193 
Proforma adjustments (1)  (1,461)
Proforma adjusted EBITDA$42,472  $40,732 
Annualized proforma adjusted EBITDA$169,888  $162,928 
    
    
Reconciliation of Notes Payable, net to Net Debt   
Notes payable, net$1,197,414  $1,026,418 
Unamortized premium(4,537) (6,025)
Deferred financing costs, net3,379  3,777 
Notional debt1,196,256  1,024,170 
Capital lease obligation1,066  1,108 
Cash and cash equivalents(4,798) (4,369)
Net debt$1,192,524  $1,020,909 
    
    
Reconciliation of interest expense to total fixed charges   
Interest expense$11,486  $11,376 
Preferred share dividends1,675  1,675 
Scheduled mortgage principal payments782  915 
Total fixed charges$13,943  $13,966 
    
    
Net debt to annualized proforma adjusted EBITDA(2) 7.0X   6.3X 
Interest coverage ratio (Adjusted EBITDA / interest expense) 3.7X   3.7X 
Fixed charge coverage ratio (Adjusted EBITDA / fixed charges) 3.0X   3.0X 
    
(1) 2Q16 excludes EBITDA of $1.0 million from dispositions and approximately $0.5 million of insurance settlement proceeds and miscellaneous income. The proforma adjustments treat the activity as if they occurred at the start of each quarter.
(2) 2Q17 does not include $26.1 million of disposition proceeds deposited in a 1031 escrow account at June 30, 2017.  The consolidated net debt to annualized proforma adjusted EBITDA would have been 6.9X after adjusting for the $26.1 million.
 
 

Ramco-Gershenson Properties Trust
Non-GAAP Financial Definitions
June 30, 2017

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Certain of our key performance indicators are considered non-GAAP financial measures. Management uses these measures along with our GAAP financial statements in order to evaluate our operations results.  We believe these additional measures provide users of our financial information additional comparable indicators of our industry, as well as our performance.

Funds From Operations (FFO) Available to Common Shareholders

As defined by the National Association of Real Estate Investment Trusts (NAREIT), Funds From Operations (FFO) represents net income computed in accordance with generally accepted accounting principles, excluding gains (or losses) from sales of depreciable property and impairment provisions on depreciable real estate or on investments in non-consolidated investees that are driven by measurable decreases in the fair value of depreciable real estate held by the investee, plus depreciation and amortization, (excluding amortization of financing costs).  Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis.  We have adopted the NAREIT definition in our computation of FFO available to common shareholders.

Operating FFO Available to Common Shareholders

In addition to FFO available to common shareholders, we include Operating FFO available to common shareholders as an additional measure of our financial and operating performance.  Operating FFO excludes acquisition costs and periodic items such as gains (or losses) from sales of land and impairment provisions on land available for development or sale, bargain purchase gains, severance expense, accelerated amortization of debt premiums and gains or losses on extinguishment of debt that are not adjusted under the current NAREIT definition of FFO. We provide a reconciliation of FFO to Operating FFO.  FFO and Operating FFO should not be considered alternatives to GAAP net income available to common shareholders or as alternatives to cash flow as measures of liquidity.

While we consider FFO available to common shareholders and Operating FFO available to common shareholders useful measures for reviewing our comparative operating and financial performance between periods or to compare our performance to different REITs, our computations of FFO and Operating FFO may differ from the computations utilized by other real estate companies, and therefore, may not be comparable.  We  recognize the  limitations of  FFO  and  Operating FFO  when  compared to  GAAP net  income available to  common shareholders. FFO and Operating FFO available to common shareholders do not represent amounts available for needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. In addition, FFO and Operating FFO do not represent cash generated from operating activities in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs, including the payment of dividends. FFO and Operating FFO are simply  used as additional indicators of our operating performance.

Adjusted EBITDA/Proforma Adjusted EBITDA

Adjusted EBITDA is net income or loss plus depreciation and amortization, net interest expense, severance expense, income taxes, gain or loss on sale of real estate, and impairments of real estate, if any.  Adjusted EBITDA should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP.  Proforma Adjusted EBITDA further adjusts for the effect of the acquisition or disposition of properties during the period.

Same Property Operating Income

Same Property Operating Income ("Same Property NOI with Redevelopment") is a supplemental non-GAAP financial measure of real estate companies' operating performance. Same Property NOI with Redevelopment is considered by management to be a relevant performance measure of our operations because it includes only the NOI of comparable properties for the reporting period.  Same Property NOI with Redevelopment excludes acquisitions and dispositions.   Same Property NOI with Redevelopment is calculated using consolidated operating income and adjusted to exclude management and other fee income, depreciation and amortization, general and administrative expense, provision for impairment and non-comparable income/expense adjustments such as straight-line rents, lease termination fees, above/below market rents, and other non-comparable operating income and expense adjustments.

In addition to Same Property NOI with Redevelopment, the Company also believes Same Property NOI without Redevelopment to be a relevant performance measure of our operations.  Same Property NOI without Redevelopment follows the same methodology as Same Property NOI with Redevelopment, however it excludes redevelopment activity that significantly impacts the entire property, as well as lesser redevelopment activity where we are adding GLA or retenanting a specific space.  A property is designated as redevelopment when projected costs exceed $1.0 million, and the construction impacts approximately 20% or more of the income producing property's gross leasable area ("GLA") or the location and nature of the construction significantly impacts or disrupts the daily operations of the property.  Redevelopment may also include a portion of certain properties designated as same property for which we are adding additional GLA or retenanting space.

Same Property NOI should not be considered an alternative to net income in accordance with GAAP or as a measure of liquidity. Our method of calculating Same Property NOI may differ from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

 

Company Contact:
Dawn L. Hendershot, Senior Vice President Investor Relations and Public Affairs
31500 Northwestern Highway, Suite 300
Farmington Hills, MI 48334
dhendershot@rgpt.com
(248) 592-6202

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Source: Ramco-Gershenson Properties Trust