Ramco-Gershenson Properties Trust
), a real estate investment trust (REIT), recently announced its
decision to offer 5.5 million shares to enhance its liquidity
position. The company also decided to grant the underwriters a
30-day option to purchase up to an additional 825,000 shares to
cover the over-allotment options.
Ramco-Gershenson intends to use the net proceeds from the
offering to repay debt under its revolving credit facility and to
fund a portion of the proposed acquisition of four shopping centers
located in Colorado, Missouri and Wisconsin.
Ramco-Gershenson reported first quarter 2012 fund from
operations (FFO) of $10.8 million or 26 cents per share compared
with $10.1 million or 25 cents per share in the year-earlier
quarter. Fund from operations, a widely used metric to gauge the
performance of REITs, is obtained after adding depreciation and
amortization and other non-cash expenses to net income.
At March 31, 2012, the company's ratio of net debt to total
market capitalization was 45.1%, compared with 52.2% in the
year-earlier quarter. At quarter end, the company had $19 million
of outstanding borrowings under its $175 million unsecured
revolving line of credit.
Based in Farmington Hills, Michigan, Ramco-Gershenson primarily
owns and manages shopping centers in targeted markets in the
Eastern and Midwestern regions of the United States. At March 31,
2012, the company's portfolio consisted of 80 shopping centers and
one office building totaling approximately 14.9 million square feet
of gross leasable area.
Ramco-Gershenson currently retains a Zacks #2 Rank, which
translates into a short-term Buy rating. We have a long-term
Outperform recommendation on the stock. One of its competitors,
Kimco Realty Corporation
) carries a Zacks #3 Rank, which implies a short-term Hold
KIMCO REALTY CO (KIM): Free Stock Analysis
RAMCO-GERSHENSN (RPT): Free Stock Analysis
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