Ramco-Gershenson (RPT) Misses Q4 EPS by 14c, Slight Miss on Revenues

Ramco-Gershenson (NYSE: RPT) reported Q4 EPS of ($0.07), $0.14 worse than the analyst estimate of $0.07. Revenue for the quarter came in at $63.72 million versus the consensus estimate of $63.8 million.

• Fourth quarter net loss attributable to common shareholders of $(5.8) million or $(0.07) per diluted share.
• Fourth quarter NAREIT-defined Funds from Operations ("FFO") of $0.30 per diluted share and Operating Funds from Operations (“Operating FFO”) of $0.31 per diluted share.
• Same property NOI with redevelopment increased 4.3% in the fourth quarter and 2.9% for the full year as compared to the same periods in the prior year.
• As of December 31, 2018, the consolidated portfolio leased rate was 94.3%, up 10 basis points sequentially.
• As of December 31, 2018, spaces less than 10,000 square feet ("Small Shops") were 88.8% leased, up 70 basis points sequentially.
• As of December 31, 2018, the Company had $4.8 million of signed not commenced Annualized Base Rent ("ABR") that is scheduled to commence over the next twelve months.
• During the fourth quarter, the Company completed the sale of six non-core properties for an aggregate sale price of $123.0 million. Additionally, the Company is under contract to sell two non-core assets for $68.5 million.
• On February 5, 2019, the Company’s Board of Trustees declared a first quarter 2019 regular cash dividend of $0.22 per common share.

"2018 marked a turning point for RPT. With the new executive team setting the tone since June, the leasing and development teams now in place, and the completion of our disposition program almost a year ahead of schedule, we ended 2018 with great momentum as evidenced by our above plan operating performance," said Brian Harper, President and Chief Executive Officer. "We are particularly pleased with the execution of our disposition program, which has significantly improved the quality of our cash flows and strength of our balance sheet. By shedding our lowest quality assets, we expect to produce higher and more consistent NOI and earnings growth in the years ahead and believe we have better insulated the portfolio from future retailer fallout. As we embark on 2019, our team is laser-focused on capitalizing on our organic growth initiatives including small shop leasing and proactive remerchandising, as well as driving further progress on our large-scale redevelopment opportunities. We believe these initiatives should drive another year of solid same property NOI growth, while setting the Company up for a return to earnings growth in 2020 and beyond.”

GUIDANCE:

Ramco-Gershenson sees FY2019 EPS of $0.12-$0.16.

For earnings history and earnings-related data on Ramco-Gershenson (RPT) click here.

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