Greetings, and welcome to the Ramco-Gershenson Properties Trust Q2 2013 Earnings Call. (Operator instructions.) As a reminder this conference is being recorded. It is now my pleasure to introduce your host, Ms. Dawn Hendershot, Director of Investor Relations. Thank you, ma’am, you may now begin.

Good morning and thank you for joining us for Ramco-Gershenson Properties Trust Q2 2013 Earnings 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 not historical may be 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 will diminish the quality of the statements made. Although we believe that the expectations reflected in any forward-looking statement 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.

Thank you, Dawn, and good morning ladies and gentlemen. Ramco-Gershenson’s strong Q2 results and our ability to post positive metrics quarter after quarter speaks to a company that is highly productive and well positioned to deliver continued, sustainable growth. Our positive broad-based accomplishments and the attendant increase in function operations furthers our company’s overall business strategy and moves us toward achieving all of our 2013 goals. In its simplest terms, our strategic mission is to be the best in class owner of a portfolio of geographically diverse, high-quality, multi-anchor shopping centers with built-in, above average income growth potential. Our 2013 goals which advance this strategy include first growing and refining our shopping center portfolio through accretive acquisitions and non-core dispositions, value add redevelopments and center expansions; second, diversifying our geographic footprint so that no one market represents more than 25% of our average base rents; third, generating consistent, sustainable same-center net operating income growth through a proactive leasing and asset management program; and lastly, accomplishing all of these growth and diversification goals while maintaining and improving a strong, flexible balance sheet. We are confident that successfully executing on each of these objectives ensures that our stakeholders will experience ever-increasing share value and a competitive dividend. How have we done so far against these measures? In the first six months of 2013 we acquired over $430 million of high-quality, multi-anchor shopping centers at an average capitalization rate of 7.4%. In addition to these acquisitions, we’re in the process of realizing on the opportunity to develop the land parcels we purchased adjacent to our recent acquisitions at Fox River in Milwaukee, Town & Country in St. Louis, and Harvest Junction in Longmont, Colorado. Each of these projects involves constructing additional square footage and the leasing of out lots at the shopping centers,…

Thank you, Dennis, and good morning everyone. Ramco’s Asset Management Team is pleased to report our Q2 operating results. We think the continuing improvement in our operating metrics speaks volumes about not only the quality of our shopping center portfolio but also about the opportunities embedded in our centers. Asset Management is on track in executing its 2013 business plan which supports Ramco’s broader strategic goal. Leasing continues to drive our portfolio productivity. In Q2 we generated strong leasing velocity of positive [rentals] for both new and expiring leases. Total lease transaction volumes exceeded 475,000 square feet, and on a comparable basis the cash rental spread was up 9.1%. We continue to take advantage of an active retail leasing environment at several levels. Shop leasing velocity was strong in Q2, accounting for approximately 70% or 150,000 square feet of total new leases signed. There are three key areas driving this activity. Number one, local small shop tenants are expanding and opening new stores at a higher rate than they have in past years, accounting for approximately 50,000 square feet of new shop leases executed during the quarter. Our selection process in vetting new local tenancies has become very stringent, allowing us to pick winners in this category which we view as those with specific concepts desired in our markets that add a flavor and excitement to our centers while benefiting from the traditional high rental rates achieved from these tenants. Number two, we also continue to benefit from high interest from national and regional small shop retailers that are expanding their stores, including The Children’s Place, America’s Best, H&R Block, and Salon ONE. Number three, large format shop users – those over 5000 square feet – continue to be a very important element in our high-quality, multi-anchor centers. For the…

Thank you, Michael. In Q2 we took a large stride forward in our capital structure and our earnings. I’ll begin by covering the balance sheet, then I’ll review our income for the quarter and conclude with our outlook for the year. During the quarter, assets increased approximately $50 million. We bought two high-quality shopping centers for a combined $58.8 million, Nagawaukee Center located in a high-income suburb of Milwaukee and Mt. Prospect Plaza, located in a dense in-fill suburb of Chicago. Both properties strengthen our presence in existing markets and exemplify our strategy of investing in well-anchored centers located in higher-income trade areas. We also sold one non-core property in Atlanta for $8.4 million. During the quarter, our $17 million development of phase one Parkway Shops in Jacksonville, Florida, was completed and opened; and we initiated expansion projects at the Shoppes in Fox River and at Harvest Junction. We funded our $50 million in asset growth with the assumption of a $9.2 million mortgage loan on Nagawaukee Center, the addition of $29.5 million of incremental debt, and the issuance of $12.5 million in common equity through our aftermarket equity program. In terms of liabilities management, we broke new ground in Q2 by closing a $110 million private placement of senior notes. This was our inaugural issuance in the private placement market. We are delighted to have earned the confidence and support of a highly selective group of net investors. By establishing our access to this source of unsecured debt capital we have demonstrated our ability to diversify beyond the bank market and to extend our debt maturity. The unsecured notes are in three tranches maturing in eight, ten, and twelve years. The weighted average term is 9.9 years and the weighted average interest rate is 4%. In order to stagger…

Thank you. Ladies and gentlemen, we will now be conducting our question-and-answer session. (Operator instructions.) Thank you. Our first question is coming from the line of Todd Thomas with KeyBanc Capital Markets. Please proceed with your question. Todd Thomas – KeyBanc Capital Markets: Hi, good morning. Thanks, I’m on with Jordan Sadler as well. In terms of acquisitions, Dennis, you mentioned an additional $40 million to $80 million in the balance of the year. I was just wondering if you’ve seen any change in the competition or pricing for property with where interest rates have moved.

Well, if I could give you just a little broader perspective, starting at the beginning of the year we saw a significant uptick in supply as well as competition for the assets that we were interested in. Since the end of May or you know, May 21st, there has definitely been somewhat of a stall in the market. Less product is indeed coming to market and certain sellers are wondering about the mood of the buyers. We keep in touch with many of our peers and everybody really has somewhat taken a wait and see attitude. I think what we need is the sellers to become more used to what is going on in the environment and to accept the fact that with an interest rate increase there will obviously have to be some adjustment in cap rates. How large that will be is yet to be determined. Todd Thomas – KeyBanc Capital Markets: Okay. And these acquisitions, should we expect this to be wholly-owned or are you working with Clarion on these acquisitions? I know you had confirmed an agreement with them after acquiring the twelve properties from them last quarter to move forward with pursuing additional acquisitions.

Right. Without going into their criteria we do continue to show them opportunities. At this juncture the $40 million to $80 million we’re contemplating would be on balance sheet. Todd Thomas – KeyBanc Capital Markets: Okay. And then I just wanted to get your thoughts, I know Ramco doesn’t own a whole lot of property within the city of Detroit but you know, sometimes what’s good or bad for the city may be good or bad for the state and have some other implications. I was just wondering if there’s anything that you’re thinking about or anything that you’re doing internally, you know, any impact that you’re thinking about regarding the properties that you own in the metro area given the situation in Detroit?

Right, well look – first of all, I’m glad you asked the question. We certainly knew it would come up as part of this call you know, because some see our Michigan presence as the elephant in the room. From our perspective, if there is an elephant there it’s a baby elephant and we have made it a point in most all of our conference calls to say look, not because we have lost faith in Michigan, in the communities we’re in or our assets or our tenants, but because there is this concentration, because we don’t think it’s healthy to have more than that approximate 25% than we’ve referenced we are working to reduce that concentration in part between acquisitions as well as dispositions. I think that there are a number of people who truly have done their research on the state of Michigan; some of them have been here and have seen our centers. However, there are those who don’t understand Michigan and Detroit at all, and worse there are those who don’t care to learn about Michigan but are absolutely prepared to articulate a view anyway. And that is both frustrating and disappointing. So let me set the record straight if I could. Number one, just the facts – we do not own any shopping centers or any assets whatsoever in the city of Detroit. We do own shopping centers in the communities that surround the city to the north and to the west. The majority of centers that we own in these areas as well as the majority of the square footage is located in Oakland County, and as we’ve said in the past Oakland County is one of the wealthiest counties in the United States with populations over 500,000 people. Oakland County is also one…

Thank you. Our next question is coming from the line of R. J. Milligan of Raymond James and Associates. Please proceed with your question. R. J. Milligan – Raymond James: Hey, good morning guys. Dennis, in your opening comments you talked about dispositions expected for the second half of the year. I was just wondering if you could quantify those and at what cap rates you expect those dispositions to happen at.

We’re expecting about something in the range of $25 million to $35 million. These will be assets that are located in secondary markets and typically the anchors that go with these assets are not the type or the credit worthiness of the anchors that we really want in our portfolio going forward. So I think rather than give you a specific cap rate we are securing bids as we speak on a number of assets, and I can tell you that Michigan will be the primary source of those sales. Will they exceed the cap rates for the assets we’re buying? Absolutely, but again, I would emphasize that it’s the difference in the type of quality and anchors that will make that determination. R. J. Milligan – Raymond James: Thank you. And can you talk about who the potential buyers of these assets are? Are they individual buyers, small buyers? Are they private equity – who’s coming to the market looking for these assets?

It really is a lot of all of the above. There are some institutional players who are looking for higher cap rate acquisitions but we’re finding that the individual buyers who are truly prepared to roll up their sleeves and really focus on those assets specifically because they don’t have a large portfolio are the people who are coming in with the best offers. R. J. Milligan – Raymond James: Okay, thanks. And for your occupancy, if you get small shop occupancy over 90% by the end of the year where does that take portfolio occupancy?

We anticipate our lease occupancy to really be at the high end of the range that we’ve identified, which is pretty much quarter-over-quarter close to the 95% number.

That’s core.

Core, correct.

He asked about the entire portfolio.

We see the trend still continuing and occupancy through the portfolio increasing as well. There is sort of a relationship; we see the spread changing from quarter to quarter but there is a relationship between our core leased and our combined portfolio leased. That spread can be anywhere from 30 to 80 basis points. We see basically the combined portfolio increasing as well. R. J. Milligan – Raymond James: Okay, thanks. And my last question is just on the acquisition front. Given the trend that we’ve seen over the past year and a half and the increase in retailer demand for space, as you think about your target markets would you prefer an asset that has lease-up opportunity or are cap rates still attractive enough to buy a stabilized property that will still provide a good yield?

We have always looked at the potential acquisitions for those that may appear reasonably stable to the seller but always have value-add opportunities for us – whether we expand the anchor, we expand the center, add an out lot. We just have not been stable asset acquirers. R. J. Milligan – Raymond James: Okay, thanks guys.

Thank you. Our next question is coming from the line of Vincent Chao of Deutsche Bank. Please proceed with your question. Vincent Chao – Deutsche Bank: Hey, good morning guys. I just want to go back to your comments about you know, it sounds like you’re driving some rent growth from some leases that were signed in the 2011-2012 timeframe when leverage was more in the tenant’s hand. Can you just give us some color on how much in terms of leasing is available there and maybe what the market you think looks like on that set of assets or leases?

Let’s take the first question which is really about rental growth. Is that accurate? Vincent Chao – Deutsche Bank: No, specifically to the comment made about renewing or rolling over some of the 2011-2012 lease signings that were maybe done in tougher times and seeing some opportunity there. I’m just trying to get a sense of how much in terms of square footage that represents and what you think the mark-to-market on that set of leases looks like.

Well Vin, I’d really refer to ’08 to ’11. Most of the leases we signed in that timeframe were either three-year or five-year leases so we’re seeing those now rolling over. The ones that obviously we have signed in ’11 and ’12 will be coming up in ’14, ’15, ’16. Again, I think you can use the yardstick of the kinds of increases we’re achieving year-to-date, anywhere from the 5% to 10% on average increases over the entire group. One of the issues obviously is in any particular quarter are you negotiating with an anchor or a group of anchors or are you negotiating with smaller format tenants, who obviously if we negotiated from ’08 to ’11 we can see a much healthier increase. So depending upon the mix in the quarter it’ll vary, but for the year I certainly think 5%, 6%, 7% is not out of the question. Vincent Chao – Deutsche Bank: Okay, thanks. And then just going back to the investment environment, it sounds like people are sitting on their hands a little bit and maybe less assets coming to market. I’m just curious though, on the deals that you are still working on are you seeing any changes in potential buyer behavior in terms of number of buyers on different deals? I know you do probably mostly off-market but bid, ask, spread, things like that, are you seeing any material changes in those kinds of areas?

I think the reality is it may be a little early. I think we’d be in a better position to answer that in Q3 because the deals, again, in talking with our peers and our activities, those deals that we’re in contracts for we’re pretty much sticking with, with attempts to barter a little bit with the seller to see if there might be some movement. If reasonable questions come up in the acquisition then that’ll give you more leverage to change the purchase price, but in the main I think people are sticking with the contracts that they have and we are all waiting just a little bit – maybe another 30 or 60 days – before everybody dives back in and feels comfortable that the cap rates they’re willing to buy at will indeed generate transactions with the sellers. Vincent Chao – Deutsche Bank: Okay, thank you.

Thank you. (Operator instructions.) Our next question is coming from the line of Mike Mueller with JP Morgan. Please proceed with your question. Mike Mueller – JP Morgan: Hi, thanks, just a few quick things here. I know you laid out the second half of the year acquisitions and dispositions and guidance, and I know it’s not going to have a huge impact in this year’s estimates but are those factored into the earnings guidance as well? Or is that just kind of exclusive of it?

It’s exclusive of it, Mike. That’s sort of consistent with how we’ve always modeled and provided guidance. As you point out I don’t think it’s going to have a big impact one way or the other because we’re heading into the back half of the year now. Mike Mueller – JP Morgan: Got it. And as we look forward for the next couple years, few years, what do you think is a good baseline we should be thinking about for asset sales in a given year? If you were sitting where we are do you think $50 million, do you think it’s more than that per year to kind of get you to your goals?

I think at least a safe number is $30 million to $40 million. Mike Mueller – JP Morgan: Okay, got it. Okay, and then where do you think development, redevelopment spend ramps up to say in ’14 and ’15 per year?

Well, we didn’t talk about it on this call but out there obviously is our project in Lakeland that is a $40 million project and you could expect that to kick off in the second half of this year with the majority of the spend coming in in ’14. But as we’ve articulated in a number of our past calls, I think the majority of the development you’re going to see from us will be things like we’re pursuing at Fox River which are typically anywhere from $10 million to $20 million as far as new construction or expansions of the center are concerned. Mike Mueller – JP Morgan: Okay. And then last question, and I know I can get this from the transcript but towards the end of your comments, Greg, you rattled off a couple of smaller line items where you said these are good run rates going forward. Can you just hit those again?

Yeah, those are related to our joint ventures, so the management fee line item, the earnings from joint ventures and then the depreciation add-back at our share, just as I imagine everyone following the Clarion deal that we did in Q1 is looking for a little guidance on the joint ventures. I think this quarter’s run rates for all three of those items are good run rates for modeling purposes. Mike Mueller – JP Morgan: Okay got it, thanks. That’s it.

Thank you, Michael.

Thank you. We have a question from the line of [Edward O’Keene with Fasso Capital]. Please proceed with your question. [Edward O’Keene – Fasso Capital]: Yes, I just have a quick question on the Detroit and Michigan issues. What I’m interested about is what percentage of your NOI comes from that region or from that city and state?

Well, as Dennis said none of our NOI comes from the city of Detroit. In the southeast Michigan area which includes the surrounding counties it’s about 30% of our net operating income which as Dennis pointed out is largely from Oakland County but also includes Macomb and Wayne Counties. [Edward O’Keene – Fasso Capital]: Okay, alright. Thank you.

Thank you. (Operator instructions.) And as there are no further questions at this time I would like to turn the floor back over to Mr. Dennis Gershenson for any concluding remarks.

Ladies and gentlemen, as always we truly appreciate your interest and your attention. This organization is on an upward trend. We’re very excited about the balance of ’13 as well as the prospects for our portfolio, and we look forward to talking with you in approximately 90 days. Be well.