Rithm Property Trust Inc (RPT) 2004 Q1 法說會逐字稿

My name is [Satina] and I will be your conference facilitator today.

At this time, I would like to welcome everyone to the Ramco-Gershenson Properties Trust first quarter 2004 earning conference call.

All lines have been placed on mute to prevent any background noise.

After the speakers' remarks, there will be a question and answer period.

If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad.

If you would like to withdraw your question, press the pound key.

Thank you.

I would now like to turn the conference over to Dawn Hendershot.

Please go ahead ma'am.

Good morning and thank you for joining us for Ramco-Gershenson Properties Trust first quarter conference call.

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 mean of the Private Securities Litigation Reform Act of 1995.

Although Ramco-Gershenson believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be obtained.

Factors and risks that could cause actual results to differ from expectations are detailed in the press release and from time to time in the company's filings with the SEC.

Additionally, we want to let everyone know that the information and statements made during the call are made at the date of this call.

Listeners to any replays should understand that the passage of time by itself will diminish the quality of the statements made.

Also, the contents of the call are the property of the company and any replay or transmission of the call may be done only with the consent of Ramco-Gershenson Properties Trust.

Having said that, I would now like to introduce Dennis Gershenson, President and Chief Executive Officer, and Richard Smith, Chief Financial Officer, and at his time would like to turn the call over to Dennis for his opening remarks.

Thank you, Dawn.

Good morning and welcome.

We're pleased to have met first call consensus estimates for the quarter of $0.56 per share.

We're even more pleased with the progress we've made in the last 3 months pursuant to our business plan for the year.

In January, we purchased the 358,000 square foot Merchants' Square Shopping Center in Carmel, Indiana, a suburb of Indianapolis.

The Center balances a combination of destination uses that include Cost Plus, Old Navy, Petco, and Hobby Lobby with a dominant area supermarket, Marsh's.

The Center is also strategically located in a trade area with significant barriers to entry.

Since purchasing Merchants' Square, we have sifted through dozens of potential acquisitions, always with an eye to finding assets to which we can add value.

Presently we're in contract for the purchase of two additional Centers.

We are pursuing the due diligence process and, if our research bears out our assumptions, we expect to close on these purchase within the next 90 days.

Both centers are located in the southeastern United States and each is anchored by the dominant supermarket in its trade area.

Further, we are presently in negotiations for a third shopping center, also located in the southeast.

The purchase of these three centers, in addition to Merchants' Square will take us beyond our acquisition goal for the year.

In the area of shopping center development, we've announced the signing of a Staples lease for our Beacon Square project in Grand Haven, Michigan.

Staples joins Home Depot as the center's second anchor.

Construction is presently underway.

We plan a second quarter opening for Home Depot, a fourth quarter opening for Staples and expect the balance of the Center to be completed for the Christmas holidays.

In addition to Beacon Square, we anticipate that we will announce another development by the end of the second quarter.

This project, also located in Michigan, will contain approximately 400,000 square feet.

Construction is anticipated to start in July.

Beyond these two projects, we are making significant progress on a third development opportunity.

We are on the cusp of signing our first anchor tenant for a planned development in Florida.

Please watch for a press release in the next several weeks.

If we're successful in achieving the appropriate critical mass over the next six months, a late fourth quarter 2004 or first quarter 2005 construction start is planned.

The property is presently under option and in addition to negotiating with a number of national retailers, we are working with the appropriate governmental agencies to secure all of the necessary approvals.

2004 will be another year for a very active core portfolio re-development program.

At the Shops of Lakeland, in Lakeland, Florida, Target has just opened in 123,000 square feet.

At our West Oaks Center, in Novi, Michigan, Gander Mountain will open their 90,000 square feet super store in May.

At the Tel-Twelve Center, in Southfield, Michigan, Michael's Crafts will open the first week of June and the demolition of the existing K-Mart at Tel-Twelve will begin in the next two weeks, making way for the construction of a new, 195,000 square feet Meijer, which should open in the spring of 2005.

Also, at our Taylor Square Shopping Center, in Greenville, South Carolina, the Super Wal-Mart will open before the end of May.

This redevelopment involved the expansion of an existing Wal-Mart from its former size of 134,000 square feet, to 207,000 square feet.

At our Highland Square Shopping Center, in Crossville, Tennessee, the expanded and completely remodeled Kroger Super Market will open in August.

Further, the shopping center currently referred to as redevelopment A in our supplement, will be formally identified in May.

Work on the repositioning of this asset is already well underway and involves another expansion of a conventional Wal-Mart to a Super Store.

The lease with our anchor tenant in redevelopment B has been executed.

We are working with the municipality and the state highway department to clear the last contingency before we can commence construction.

The reference to redevelopment C in the supplement, involves a free standing K-Mart in metropolitan Detroit.

We had finalized an understanding with one of the national home improvement stores, however, due to an operations issue on their end, the agreement was not executed.

We are now in serious negotiations with a national supermarket chain to occupy this space.

Throughout the balance of the year we will be announcing additional redevelopments of core assets.

One of these projects, which will come online within the next 45 days, involves a shopping center we purchased within the last twelve months.

The redevelopment involved the expansion of our anchor super market.

The remodeling and expansion of this anchor will increase the long-term value of the center as well as its net operating income.

The redevelopments and anchors I've just listed, plus those redevelopments that will start during the balance of the year, ensure that our centers will remain the focal point of their trade areas.

Our redevelopments also generate above average individual center income growth, a constantly improving tenant mix, and an ever-increasing asset value.

I would like to take a moment to talk about our occupancy rates.

The supplement notes a drop in occupancy from last year at this time.

What this number does not reveal is that those anchors I have just discussed, as part of the redevelopment program, and which will be opening within the next 90 days, were for the most part, occupied spaces last year in the first quarter.

Thus, leases in place with tenants under construction, but not yet open, are excluded from our present occupancy figure.

These include Gander Mountain at West Oaks, Wal-Mart Super Stores at Taylor's Square and redevelopment A, the Kroger at Highland Square, Ashley's Furniture at Lakeland and Michael's Crafts at Tel-Twelve.

Because these retailers will be opening soon, and our leasing program is progressing nicely, the increase planned in our occupancy rate, which we discussed in the third and fourth quarters of last year, is still on track to be achieved by the end of 2004.

On the leasing front, new, non-anchor tenant openings during the first quarter of the year produced average rental rates over 28% above portfolio average.

This number, coupled with the increase in rental rates for tenants renewing in place of approximately 10%, graphically demonstrate our centers' desirability as a home for tenants willing to pay for locations that produce superior retail sales.

These rental increases should also be viewed in light of our variable cost recovery rates, which even with the drop in anchor occupancy, based on factors I've just mentioned, show that we recoup over 98% of operating expenses.

Thus, we are not sacrificing our ability to recapture the cost of operating our centers to boost rental rates.

Also under the leasing activity analysis in the supplement, we show a number of month-to-month tenancies.

Almost without exception, these leases are being maintained on a monthly basis for the company's benefit as we work on various redevelopment opportunities where we need to maintain flexibility with certain spaces that may be impacted by changes to the shopping center once we have finalized our direction.

These tenants may be renewed, the spaces may become home for retailers who need to be relocated, or specific locations may be necessary to accommodate various existing tenant expansions.

In summary, we're pleased to report that Ramco-Gershenson is diligently pursuing multiple opportunities in each of our profit centers.

With an improving economy and a long list of anchor retailers actively seeking new locations, as well as expansions to their existing operations, our management team continues to realize on these opportunities, which will in turn drive our growth in 2004 and beyond.

I would now like to turn this call over to Rick Smith, our CFO, who will dazzle you with the discussion of the details in our financial statements.

Thank you Dennis and good morning everyone.

For the first quarter, our diluted FFO per share was $0.56, which met first call estimates.

This represented a 1.8% increase from the $0.55 reported in 2003.

The primary reasons for the increase resulted from redevelopment properties coming back on line, the positive benefits of our acquisitions over the same quarter last year and leasing and development fees earned on our development joint venture.

On a gross basis our diluted FFO increased $2,775,000, we went from $8.,447,000 in 2003, to $11,222,000 in 2004.

The $2,775,000 increase was made up of a $2,070,000 contribution from property acquisitions, a $410,000 increase from core assets and $295,000 of leasing and development fees earned at Beacon Square.

Our operating statistics for the first quarter include reduction in occupancy, which went from 90.9% in 2003, to 89.5% in 2004.

As Dennis pointed out our occupancy would have been over 91% if we included anchor tenants with signed leases that are expected to open in the next few months.

For the quarter our same center NOI increased 2.2%.

The increase was a result of re-tenanting at West Oaks in Crofton, and bringing the Shops of Lakeland partially back on line.

Excluding our redevelopment projects, our same center NOI growth was about 5.7%.

For the three months ended March 31, our FFO payout ratio improved, we went from 76.4% in 2003, to 75% in 2004.

On a FAD basis the company's payout ratio also improved, we went from 85.7% in 2003, to 84% in 2004.

This provided us with $1.6m to reinvest in our business plan and to pay on the company's debt.

Our leasing for the quarter included renewal of 49 non-anchor leases, at an average rent of $12.19 per foot, which was a 9.8% increase over the previous rental rates.

We also renewed four anchor stores at an average rent of $4.41 per foot, which was a 3.6% increase over the previous rental rates.

Additionally, we added 20 new non-anchor stores at an average run of $16.50 per foot, which was a 28.3% increase over our portfolio average.

Our total debt at quarter end was $494.5m.

We had an average rate of 6.3% and an average term remaining of about 4.2 years. 86.3% of our debt was fixed with an average rate of 6.8% and only 13.7% of our debt was floating with an average rate of 3.1%.

Our overall exposure to variable rate debt was reduced to approximately 6.6%, subsequent to quarter end when we refinanced Auburn Hills and Crossroads Center in the amount of $34.7m at a rate of 5.38% for the next ten years.

Availability under a secured revolver was $31m at quarter end and it was $40m for our un-secured revolver.

Our EBITDA interest coverage improved for the three months.

We went from 2.23 times in 2003 to 2.52 times in 2004.

For the quarter end our debt to market cap increased slightly, we went from 43.7% at year-end of 2003, to 45.8% at quarter end 2004.

The decrease was the result of additional debt associated with the acquisition of Merchants' Square and a slight decrease in our stock price.

Acquisitions for the quarter, we purchased a center in Carmel, Indiana, with 358,000 square feet for $37.5m.

As part of the transaction, we assumed debt of about $23.1m at a rate of 7-1/8%.

Our capital expenditures for the quarter totaled $44.7m.

We spent $37.5m on acquisitions, $5.7m on expansion/renovation projects, $700,000 on development projects, $523,000 on non-recoverable CAPEX and $310,000 on recoverable [CAM].

We expect to fund future growth by retaining cash from our operations, by continuing to sell non-core assets and selected assets with limited upside potential, by refinancing assets which have been expanded or renovated in prior periods and by drawing on our credit facility.

Lastly, for 2004 we expect our diluted FFO per share to be at the low end of our previous guidance, which was between $2.35-$2.40.

[Satina] we would like to open up the call for questions now.

At this time, I would like to remind everyone in order to ask a question please press star then the number one on your telephone key pad.

We will pause for just a moment to compile the Q&A roster.

Your first question comes from the line of Jay Leupp, with RBC Capital Market.

Good morning Dennis and Rich, here with David Rocco.

Just some follow-up Dennis, on your acquisition comments early in the call.

Could you give us the cash CAP rates for the acquisitions that you talked, particularly the ones that you're looking at in the southeast that you expect to close later this year?

And also talk a little bit about the incremental returns that you're receiving on this re-development that's coming on line this year.

Hi Jay and David, thanks for joining us.

First of all, relative to the CAP rates, we believe that the CAP rates are approximately 8%, maybe a shade under 8%, although when we announce who the supermarket anchors are, and at least one of these Centers has more than just a supermarket anchor, but it is truly one of the most sought after supermarkets in the southeast, where we're seeing CAP rates breaking 7% into the 6's.

So we negotiated this agreement directly with the owner of these two shopping centers and think that we've done reasonably well.

We also see some upside in both of these.

Relative to the redevelopments, again, historically, we've looked for double-digit returns on new dollars invested somewhere between 11 and 12% to as high as 14 or 15%.

Okay.

Then if you could give us maybe just a brief update on the progress on 2004 and 2005, expiration and renewals, and the types of leasing spreads that you're seeing in the market today, both for anchors as well as the non-anchor tenants.

Well, for the non-anchor tenants, we expect to continue to be able to achieve new lease rates.

For new leases that we're signing for tenants who have not been in previous occupancy, again, to be at least double digits above our historical averages.

We're finding in a number of our shopping centers, and I think I've said this in the past, such as our Taylor Square, where we have the expanded Wal-Mart - and we have several centers- we have one we've announced, another one that's coming on stream here that we'll announce in May, the actual shopping center, where you've got the Super Wal-Mart, we're establishing new highs in those communities as far as rental rates are concerned.

So, we have a reasonable pool of tenants who are very interested in coming into our shopping centers and we're confident we can achieve double-digit increases, as well as very significant lease rollovers for our existing tenants, which have historically averaged between 70-80%.

Okay and then just one follow-up Dennis.

On the [indecipherable] for the two acquisitions that you were talking about and the upside that you're expecting, are you seeing the upside mostly from just lease renewals and upsides in those rents or are these going to be also redevelopment opportunities for you?

Well, not in everyone do we see a redevelopment opportunity.

But I hope you noted my reference during my remarks to the one shopping center that we acquired and we are already expanding the supermarket within the first twelve months of ownership.

That is not necessarily the norm, however, we aggressively pursue the plan that is put in place during the due diligence process.

We expect on at least one of these two acquisitions, to be able to accomplish something more in the more aggressive redevelopment than merely lease rollover.

Okay, and now one last follow-up.

Rich, given the fact that you're already at your acquisition mark for the year or expect to be pretty shortly and you're expecting the low-end of the range for 2004 FFO guidance this year, what are the chances that we'll see you announce additional acquisitions between now and the end of the third quarter, that could potentially drive your guidance into the mid or upper range?

Yes, I think we're still looking at more acquisitions as Dennis pointed out.

Whether that changes our guidance, I don't know because I think we're also anticipating a couple more developments coming on line.

I think that right now, we're very, very comfortable with one, the other is still in the infancy stages.

Okay, thank you.

Your next question comes from the line of Lou Taylor with Deutsche Bank.

Good morning, this is Chris [Catalonga].

Sticking with the acquisition pipeline, how big in gross dollars was it?

I think I might have missed that.

We had talked about, Chris, first of all good morning.

We talked about an acquisition pipeline when we talked in the fourth quarter, about what we planned for 2004, of between $75-80m.

We purchased $37m to date.

We expect on closing on these three assets, assuming all goes well, that we should exceed the $75-80m and that should happen, let's say by the, sometime in the third quarter.

We will continue to research and selectively contract for additional acquisitions.

So you could expect that we're talking somewhere in the $45-50m range for these three centers.

Will they carry any existing debt or unencumbered?

One will carry existing debt.

Okay.

Is it refinanceable or is it…?

Not at this time.

We're looking at refinancing it potentially, somewhere in the vicinity in of six to seven years out.

Okay.

Turning to the development, the size of the pipeline for the, I guess additional two developments that you highlighted.

Do you have any sense of how big, on a dollar basis, they will be?

I mean, Beacon Square is in the $8m range, one of the one one's Dennis mentioned in Michigan is about $10m.

The one in Florida, like I said, is still in the infancy stages and it could be a relatively big project.

$25m?

Potentially there.

Okay.

I guess the last question, in terms of the recoverage this quarter, how much would attribute to, call it, true-ups or catch-ups from last year?

Yes, very little.

Very little?

Yes.

Okay, great, thank you.

Your next question comes from the line of David Ronco, with RBC Capital Market.

Good morning, follow-up to Chris' question there on construction.

And dollar volume you addressed, I wondered if you could address target yields for those developments as well?

Somewhere around 12% is our ROI.

I think they're both about the 12% range.

Great.

Second question is relating to liquidity, current liquidity.

Wonder if you could talk about that a little bit Rich, in terms of cash, line capacity, maybe liquid assets, and liquidity as it relates to your plans for funding the balance of your upcoming acquisitions and development pipeline?

On the [grate] today, or at quarter end, I think we had a little bit north of $70m of availability under our lines.

We also have the accordion features in both facilities.

I think one is up $25m and the other is $10m on the unsecured.

So we could expand those if we needed to.

We also have a couple of our anchors at both Crossroads and Auburn, but more specifically Auburn that'll provide us some cash when they buy their leases out.

Okay, great, thanks.

Great.

Your next question comes from the line of Rich Moore, with Key-McDonald.

Hello, good morning guys.

: Good morning Rich.

I have to say Dennis, I was dazzled by Rich's comments.

I was hoping somebody would get a kick out of my segues.

I definitely got a kick and I was definitely dazzled.

A couple of things, guys.

The occupancy target for your end that you were talking about, you're saying that's still in force, remind me of what you're thinking there.

By year-end, I think you're mid 93-94% is what we're targeting.

Maybe averaging about 93 for the year.

Okay, okay, good, thank you.

Then you were talking about on the debt side, Rich, you fixed the mortgages on Auburn and Crossroads, is that right?

Yes, you know what we did, as you know, Rich, I think some of the anchors have the right to buy in the next few years their leases and then again for tax reasons.

They are generally anchors that buy day one for tax reasons.

I think we entered them in a long-term lease with an option to buy after 4 years, to beat the prohibited transaction section.

But basically, I think what we did, we kept both construction loans in place, reduced them, and then put additional financing, we took the Giant Eagle Center in Crossroads and crossed it with the out losses at Auburn Mile and that's the additional financing we put on the property.

So again, we reduced the construction loans, kept those in place at a lesser amount, and then in turn put the permanent financing for the next 10 years on the balance of the centers crossed.

Okay.

As I look at the supplemental here, those two $21m mortgages disappear, basically?

They really - they get paid down, if you'll bear with me for second, they don't totally disappear.

We could go over it offline too.

Okay.

I want to tell you real quick because I've got it right in front of me now.

I think that Auburn goes down to about $15.7m and Crossroads goes down to about $6.9m, they continue to float.

They'll be paid down as the anchors exercise their options to buy.

In addition to that, we put the additional financing on both properties and then locked it at the 5.38 for ten years.

Okay, I got you.

Okay?

Yes, I got you.

It's a little confusing, but…

No, I think I understand.

Let me ask you a couple of line items too, if I could.

Taxes were quite a bit lower, as they often are in the first quarter.

Remind me what happens the rest of the year, why maybe those are down in the first quarter?

Rich, I'll have to get back to you on that.

But is has nothing to do with Auburn Mile.

Okay, so I'm just trying to think, as I look forward, Rich, at this.

Basically, if Target and Meijer buy their sites at Auburn Mile, you're going to go through, they'll pay their taxes directly, so it reduces our overall tax accrual, if that makes any sense to you.

No, it does.

So [EBITDA] would stay down then for the year.

What you're seeing is as a result of that loan a lower run rate.

Rich, it's not that first quarter will be low and then you'll see some spike in the second quarter and then low in the third.

I mean, the numbers are fairly representative, it just happens as it relates to Meijer and Target and their dispute of the taxes.

Okay, I got you, I got you.

Then a couple more, on the interest and other income line.

Any thoughts on how to model that, that was down?

And also, go ahead with that one, I guess it's a good one.

The interest and other income, I think was down and the other income is specifically, is basically lease termination fees.

I think first quarter last year, we had County Market pay us a sizeable termination fee, that's really the reason it's down.

I wish I could tell you how to model that, I think we're more opportunistic there.

You can look at where we think that will be for the year, which has been historically, I think we've been in the $2-3m range.

Okay, okay, yes, absolutely.

Then on percentage rents, sort of as percentage of minimum rents, you guys got bigger, but percentage range ticked down.

Are these moving in the year, it's a different quarter, or is there something that you're just getting more percentage rent?

Again, percentage rents, I think that you want a cash basis.

But I think what you're seeing more, especially with the expansions of the Wal-Marts, is a swap out in effect of an increase in minimum rent and decrease in percentage rent.

Okay, good.

On equity issuance, I mean, given what's happened in the rate market, how are you guys looking at that?

Because, with a pretty good group of acquisitions that you're planning, raising equity would be reasonable.

What are your thoughts on that?

Well, if you wanted to have all the analysts who are on the phone want to give us an aggressive buy we might get back up to $29.

But we certainly are constantly looking for sources of capital.

The equity markets have been very favorable for us for the last two years.

At an appropriate level, we might consider issuing equity.

At this juncture, we have enough dry powder to make the acquisitions that we're contemplating and to complete our business plan for the year.

We'll have to see how our stock price performs, what happens with interest rates and then we'll make some decisions.

Okay, but Dennis you don't think any of the acquisitions you're planning or in the pipeline would be jeopardized by an inability at a lower stock price, to issue equity?

Again, let me put it this way, maybe we're saying the same thing.

We don't believe that any of our potential acquisitions are jeopardized because we won't have the money to close on them.

Got you, got you, okay, thank you.

Then when you look at the redevelopments, I mean I got a little bit lost in all the redevelopments you went through.

Were all of those in the supplemental?

Yes.

Good, I thought so, okay I just had to make sure, and I think that's it.

Thank you guys very much.

All right, just a quickie, Rich.

Some of them were specifically named, others were, whether it was the use or development, was not named, but it might have been referenced as redevelopment A and B.

I'm with you there, thanks Dennis.

Once again, I would like to remind everyone in order to ask a question please press star then the number one on your telephone key pad.

Your next question comes from the line of Phillip Martin, with Stifel Nicolaus.

Good morning, gentlemen and Dawn.

Good call and they're never going to get Stifel Nicolaus pronounced right.

But just a couple questions here, most everything has been answered.

In terms of trends in your renewal rates, on the renewal rents, et cetera, I mean it was a very good quarter, obviously, what do you look for, and it may have been, I was taking notes at the beginning of the call, so you may have addressed this, but what are the trends going forward here?

Obviously, it was a very, very good quarter in renewals and what do you see as the trend or was there an anomaly in the first quarter?

Phillip I still think you're looking at historically, we've been, as Dennis pointed out, at about 70% renewal rate, I'd expect that to continue.

We've been really in the mid single digits, same space growth in rental rate, as I'd expect to be.

I think Dennis also talked about that and maybe in the 6-7-8 somewhere in that range is where we've been.

In this quarter, I think it was a little bit high, but I think over the period we'll be somewhere in that range.

Was that driven by any one or two tenants here or any one or two locations?

Any superior locations where you saw the non-anchor leases renewed at nearly 10% above former rates?

I wouldn't say there was one or several specific tenants.

Again, historically, and Rich is using 6 or 7, historically we've been somewhere between 7 and 8%, so to tick up to 10 is not that significant of a change.

We have been dealing with a number of tenancies in centers where we have redeveloped them, made some improvements and obviously, are able then to deal with tenants, some of which, we may have put on a one-year or two-year extension while we did the redevelopment and thus were able to pick up on our ability to increase their rental rates.

This should not be considered as a significant anomaly.

Okay.

Again, what I'm driving at too, is obviously with the redevelopments coming on line, et cetera, and these repositioning strategies starting to come through, that's generating essentially higher rents, so the operating strategy is working here.

I guess in terms of tenants now, as the economy has improved have you seen anything different among tenants.

It sounds like certainly you're seeing a lot of demand from some high quality, good credits out there.

Have you seen more potential tenants as the economy has begun to improve, et cetera?

Yes, the lease flow in our centers has picked up, including the smaller, local tenants are more aggressively pursuing these locations.

The only thing that's slowing us down is the legalistics of going from finding the tenant through getting a lease executed and then working with municipalities on getting their plans approved.

But, we are definitely seeing significantly more interests on a regional and local basis from tenants, and on a national basis that interest had never really diminished.

Okay.

How about the fall-out after Christmas?

I mean, obviously, every year in the first quarter, if it's a poor Christmas season, you tend to see some of those tenants close up shop.

Did you see, was your experience, did you see less of that, much less of that this year after the Christmas holiday season?

You saw less of that after the holiday season for no other reason than in the last couple of years you've had some very significant bankruptcies.

Exactly.

Probably the only significant bankruptcy you've seen, relative to a category, had to deal with toys and games.

We really had very limited exposure to that.

And so I think most of our peer group came through the Christmas season relatively unscathed.

Okay, okay, perfect.

Thank you very much.

Once again, if there are any further questions please press star one on your telephone keypad.

At this time, there are no further questions.

All right, once again, Rich and I would like to thank all of you for joining us and look forward to being back with you at the end of the second quarter.

Have a good day.

This now concludes today's Ramco-Gershenson Properties Trust first quarter 2004 earnings conference call.

You may now disconnect.