Ramco-Gershenson Properties Trust ( RPT)

Q2 2011 Earnings Call

July 27, 2011 10:00 am ET

Executives

Dawn Hendershot- Director IR

Dennis Gershenson - President and CEO

Gregory Andrews - CFO

Michael Sullivan - SVP

Analysts

Todd Thomas - KeyBanc Capital Markets

Nathan Isbee - Stifel Nicolaus

Michael Mueller - JPMorgan Chase & Co.

Rich Moore - RBC Capital Markets

Ben Yang - Keefe, Bruyette & Woods

Omotayo Okusanya - Jefferies & Company

Vincent Chao - Deutsche Bank

Presentation

Operator

Greetings and welcome to the Ramco-Gershenson Properties Trust second quarter 2011 earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder this conference is being recorded. It is now my pleasure to introduce your host Dawn Hendershot Director of IR for Ramco-Gershenson. Thank you Mr. Hendershot, you may begin.

Dawn Hendershot

Good morning and thank you for joining us for Ramco-Gershenson Properties Trust second quarter conference call. Joining me today are Dennis Gershenson; President and Chief Executive Officer, Gregory Andrews; Chief Financial Officer and Michael Sullivan; Senior Vice President of Asset Management.

At this time, management would like me to inform you that certain statements made during this conference call which are non-historical maybe deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.Additionally, statements made during the call are made as of the date of this call. Listeners to any replay should understand that the passage of time by itself would diminish the quality of the statements made.

Although we believe that the expectations reflected in any forward-looking statements are based on reasonable assumptions, factors and risks that could cause actual results to differ from expectations are detailed in the quarterly press release. I would now like to turn the call over to Dennis for his opening remarks.

Dennis Gershenson

Thank you Dawn, good morning ladies and gentlemen. The only member that during our fourth quarter 2010 conference call, we outlined for 2011 a number of operating performance calls, handle management objectives and a plan to improve the overall quality of our portfolio. To that end, the first six months of this year has been a very busy in productive areas with the company.

As a result of our actions over the last 120 days, we are delivering on our promise to provide long term share holder value and with our plans for the second half of 2011; we are laying the foundation for predictable, sustainable earnings growth. Our objectives are to provision the company as one of the top performing shopping centre (inaudible).

In order to achieve all of these goals, we formulated our 2011 strategy to include; one the improvement of balance sheet and the generation of significant liquidity so that the company will be positioned to see the opportunities as they arise as well as to insulate us for future risks as it relates to outstanding debt maturities over the next 24 to 36 months.

Two; our plans include capitalizing on the strategic location and strong tendency of our shopping centres, to push occupancy and thus improve our operating incoming performance while continuing costs. And three; through the sale of non-core assets and the acquisition of well located shopping centres with a value add components, we will positively reshape our demographic profile and geo-graphic concentration as well as expand the breath of (inaudible) mix and further improve the quality of our income string.

With the results of the second quarter and the first six months of 2011, demonstrate significant progress on all of these growths. Relative to our first goal, balance sheet improvement and enhanced liquidity. I am pleased to report that with the closing of our term loan and line of credit both are in significantly more favourable terms of the company than our previous facilities. And the funding of our perpetual preferred offering. The outstanding balance on our revolving line of credit at quarter end stood at a $33 million. This balance has been further reduced by the proceeds from our recently completed sale of the Sunshine Plaza shopping centre in Tampa at Florida.

Our (inaudible) approach through balancing our sources with our uses of capital will allow us to maintain a positive debt profile through the balance of the year. In a few minutes, Gregory Andrews will discuss the details of our financial activities in this last quarter. The cost progress and asset management produced the greatest return on invested capital. Our second goal involved leveraging our shopping centre locations to create occupancy [ph] and drive operating income. Our review of our supplement will show that we have made real progress in all aspects of portfolio operation.

As the beginning of 2011, I challenged Asset Management to accomplish four objectives. First, we were to retain a higher percentage of retailers with aspiring leases at our historical average. Second, we should build upon our success in signing new (inaudible) leases with a goal of continuing to reduce the number of vacant anchor each quarter.

Third, with the securing of numerous anchor destination draws, our leasing department should be able to achieve substantial progress in the leasing of the ancillary retail space and lastly I charged asset management to further reduce the cost of centre operations as the lower cam [ph] charge benefit all of our tenants. Success in these four areas will also drive improvement in our same centre net operating income comparison, which is indeed we reflected in our second quarter results.

Achieving these four objectives in addition to our ongoing focus to uncover opportunities to add values to our core portfolio. An example of this process is the announcement this quarter of the redevelopment of our shops on lane shopping centre to include a new expanded old food store in 35,000 square feet. Michael Sullivan will address the four goals I have outlined at the conclusion of my remarks.

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