Ramco-Gershenson Properties Trust
Encyclopedia
Ramco-Gershenson Properties Trust (R-G) is a fully integrated real estate investment trust
(REIT). As of 2009, it owned 88 properties comprising 19800000 square feet (1,839,480.2 m²) of gross leasable area in 13 United States. The company is headquartered in Farmington Hills, Michigan
and employs 200 people. Ramco-Gershenson is publicly traded on the NYSE under the symbol RPT.
The company and 22 key properties merged with RPS Realty Trust on May 1, 1996. The resulting company was named, Ramco-Gershenson Properties Trust and has expanded by both development and acquisition.
Beginning in 2008, Inland American and Equity One Inc. each began to pursue Ramco-Gershenson by acquiring 9% and 9.63% (respectively) of the company's stock. R-G initially rebuffed the overtures and adopted a poison pill
strategy with a shareholder rights plan.
However, R-G had two problems: almost half of their debt was scheduled to come due in 2009/2010 and credit was tight. Nearly two-thirds of the company's shopping centers are in states like Michigan, which have experienced the most severe effects of the recession.
In May, 2009 R-G agreed to seat two members on its board proposed by Equity One. In late 2009, R-G announced that it had secured financing for significant debt and was not interested in merging with another company.
Real estate investment trust
A real estate investment trust or REIT is a tax designation for a corporate entity investing in real estate. The purpose of this designation is to reduce or eliminate corporate tax. In return, REITs are required to distribute 90% of their taxable income into the hands of investors...
(REIT). As of 2009, it owned 88 properties comprising 19800000 square feet (1,839,480.2 m²) of gross leasable area in 13 United States. The company is headquartered in Farmington Hills, Michigan
Farmington Hills, Michigan
Farmington Hills is a community in southeastern Michigan. It is the largest city in Oakland County in the U.S. state of Michigan. Its population was 79,740 at the 2010 census...
and employs 200 people. Ramco-Gershenson is publicly traded on the NYSE under the symbol RPT.
History
The A & W Management Company was founded in 1950 by Aaron & William Gershenson. They developed more than 70 shopping centers in the Midwest over nearly half a century. The original founders stepped down in 1975, succeeded by William’s sons and one unrelated associate, Michael Ward. The company was renamed, Ramco-Gershenson, Inc.The company and 22 key properties merged with RPS Realty Trust on May 1, 1996. The resulting company was named, Ramco-Gershenson Properties Trust and has expanded by both development and acquisition.
Current position
Stock prices for REITs plunged following the real estate collapse in the late 2000's.Beginning in 2008, Inland American and Equity One Inc. each began to pursue Ramco-Gershenson by acquiring 9% and 9.63% (respectively) of the company's stock. R-G initially rebuffed the overtures and adopted a poison pill
Poison pill
A shareholder rights plan, colloquially known as a "poison pill", or simply "the pill" is a type of defensive tactic used by a corporation's board of directors against a takeover...
strategy with a shareholder rights plan.
However, R-G had two problems: almost half of their debt was scheduled to come due in 2009/2010 and credit was tight. Nearly two-thirds of the company's shopping centers are in states like Michigan, which have experienced the most severe effects of the recession.
In May, 2009 R-G agreed to seat two members on its board proposed by Equity One. In late 2009, R-G announced that it had secured financing for significant debt and was not interested in merging with another company.
See also
- Shopping property management firms