Margaret Kofkoff - Investor Relations John Kite - CEO Tom McGowan - COO Dan Sink - CFO.

Todd Thomas - KeyBanc Capital Markets Christy McElroy - Citi RJ Milligan - Raymond James & Associates Craig Schmidt - Bank of America Tammy Feak - Wells Fargo Securities Chris Lucas - Capital One Securities.

Ladies and gentlemen, good morning. Thanks for joining the Third Quarter 2014 Kite Realty Group Trust Earnings Conference Call. My name is Ryan, and I’ll be the operator on the event. And at this time, all participants are in a listen-only mode. Later, however we will be opening the lines to facilitate questions and answers.

(Operator Instructions) And as a reminder, we are recording the event for replay. Now, I will call the turn over to Maggie Kofkoff with Investor Relations..

Thank you and good morning everyone. Welcome to Kite Realty Group’s third quarter 2014 earnings call. The Company’s remarks today will include certain forward-looking statements that are not historical facts and may constitute forward-looking statements within the meanings of the Private Securities Litigation Reform Act of 1995.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward-looking statements.

The Company refers you to the documents filed by the Company from time-to-time with the SEC, which discuss these and other factors that could adversely affect the Company’s results. On the call with me today from the Company are Chief Executive Officer, John Kite; Chief Operating Officer, Tom McGowan; and Chief Financial Officer, Dan Sink.

And now I would like to turn the call over to John..

Thanks Maggie. And welcome everyone who has joined us today for our third quarter earnings call. We are very excited to be reporting our first full quarter reflecting our merger with Inland Diversified. 2014 has been a productive and transformative year for Kite. We’re energized and excited about the next stages in the company’s evolution.

In the near term, we are focusing on maximizing the opportunities in our existing portfolio, continuing progress on our development and re-development projects and further improving our balance sheet.

Before we walk through the quarters results, I feel it’s important to look back over the last 12 months and recap two substantial transactions which were both disciplined and extremely well executed.

In November of last year, we acquired a $304 million nine property portfolio in an off market transaction funded with approximately 80% common equity and the proceeds of select asset sales. In February of this year, our team under wrote and agreed to the terms for a transformational $2.1 billion merger with Inland Diversified.

The deal was structured to continue our strategic goals of delevering the balance sheet and enhancing our asset quality.

While completing these two transactions, we were able to grow FFO per share as adjusted over the last two years by approximately 17% and delever the balance sheet nearly two times to bring our net debt to EBITDA to approximately 6.5 times.

For the third quarter, we started by closing the merger on July 1st, and as discussed on our last call, we executed on a number of actions we have previously announced. First, we sold all of the single tenant assets, two the three apartments assets and the securities portfolio.

Second, we used the merger as an opportunity to upgrade some of our existing internal systems such as August enterprise, Oracle, MRI and salesforce, which will improve our efficiencies throughout the combined company.

Third, we hired a group of talented employees to help manage the larger portfolio and fully integrated the leasing and accounting data into our systems. As part of this process, we are pleased to welcome Scott Murray to our senior executive team as the Company’s General Counsel and Corporate Secretary.

Our six regional officers are fully operational and our teams have been spending considerable time reviewing all the centers in their regions and focusing on NOI growth within each asset manager’s respective areas. And finally, the merger is fully integrated and our combined portfolio is performing very well.

From an operational standpoint, the third quarter marks another strong reporting season for Kite as our results are consistent with our guidance at the time of the merger. Operating expense synergies from the merger played out as expected at $17 million.

Going forward, we will continue to focus on leveraging the scale of our combined portfolio to create cost efficiencies and further enhance our operational performance. Merger cost matched our year-to-date estimates of approximately $27 million.

As expected, the Inland Diversified portfolio contributed approximately $34 million to cash NOI for the quarter.

We’ve increased our average base rent per square foot excluding ground leases over 11% in a single quarter from $13.48 to $14.98 per square foot and we will continue to increase our average base rent with the announced 15 asset disposition which we’ll cover shortly.

Our leasing team aggressively re-negotiated terms to ensure each lease agreement that was executed since the merger meets our standards. Lastly, we delivered on our balance sheets strategic plan to bring our metrics inline and we are proud to announce that both Moody’s and S&P assigned us investment grade credit ratings.

So we’re pleased to report a third quarter FFO as adjusted for merger cost at $0.51 per share, again in line with the guidance we gave in February. Our same store net operating income grew another 4.7% for the quarter marking two consecutive years of growth in access of 4%.

During this robust growth, we are increasing our same property guidance for the full year to 3.5% to 4% from 4.4% to 4.6% for the year. The growth in same property NOI includes occupancy gains from high quality tenants opening in 2014, such as sprouts, fresh market, total wine and [Gander] Mountain.

During the third quarter our team executed 64 new and renewal leases for approximately 425,000 square feet. On a comparable basis for 51 leases, cash rents spread were 14.4% with renewals up 6.3% and new leases up 43.9%.

On the development front, we’ve had four new anchor tenant openings since the end of last quarter for a total of 162,500 square feet and another three national anchor tenants with internally approved deals under negotiations.

Each of the openings are integral to the success of our development and redevelopment projects, with three of the four at Parkside Town Commons namely Field & Stream and Golf Galaxy and Parkside Phase II and Petco at Parkside Phase I.

We recently commenced construction on Phase II of Holly Springs Towne Center in Raleigh, North Carolina which will encompass over 150,000 total square feet with a planned opening in the second half of next year. Phase II is approximately 78% pre leased and will be anchored by Bed Bath and beyond DSW and Carmike Cinemas.

We are also making significant progress on Tamiami Crossing, a 25 acre parcel at the Southwest corner of Highway 951 and 41 in Naples, Florida which is currently in land held for development. We anticipate this project will contain approximately 120,000 square feet and we should commence construction in April of next year.

The anchor leasing momentum started with Stein Mart executing a lease in the third quarter and we are currently in late stage negotiations with five additional box tenants.

On the redevelopment side, we substantially completed our project the Bolton Plaza in Jacksonville Florida which included a repositioning of the existing space and consists of over 155,000 square feet. With a majority of the work completed and an 85.5% pre leased, we transitioned the property into our operating portfolio.

In addition to Bolton Plaza, we continue to make strong progress at our other redevelopment project in Florida, Gainesville Plaza in Gainesville, Florida. This [treaty] will be completed by the middle of next year. The redevelopment consists of approximately 165,000 square feet and is about 82% pre-leased and is anchored by Burlington and Ross.

Burlington opened in September and Ross is currently under construction and is expected to open next spring. Both of these redevelopment projects have a average income annual return of approximately 9.25%.

Looking forward, we’ve identified over a $100 million of repositioning projects to begin between now and the end of 2016 in which we target incremental returns between 8% to 10%.

Turning to dispositions, we completed an extensive review of the combined portfolio in the third quarter as we continue to look for opportunities to enhance the quality of the overall portfolio. As mentioned on our last call, we are executing on our multi asset disposition that we deem non core to the portfolio.

In September, we announced that we had entered into a definitive agreement to sell 15 retail properties for approximately $318 million. The 15 assets under contract have an average base rent of $14.41 per square foot which is approximately $0.57 below our current portfolio average.

The remaining 45 assets retained from the merger have an average base rent of $16.98 per square foot. We remain focused on assets with high growth and choose to retain assets consistent with our overall strategy. Looking at the markets where we have a presence and scale, it’s evident that the 15 disposition assets are not core to the overall strategy.

If you look at our top five states, post disposition, and compare the states household income to our portfolios, we outperformed the median by over 26%.

So while we always strive to be in the right markets, we put great importance on being in the right submarkets as evidenced by the improvement the sale makes to our average base rent, putting the overall portfolio north of $15 per square foot upon closing.

We will initially look to pay down debt and then redeploy sales proceeds back into high quality assets where we think we continue to grow our overall NOI. With the transaction market environment being as competitive as it is today, we structured the transaction to close in two tranches targeting December of this year and March of 2015.

The staggering dates will provide us enough time to properly and carefully identify the correct opportunities which meet our geographic and economic objectives.

This transaction is a meaningful economic benefit to the company as the 15 non-core assets are being sold at the same effective cap rate as the entire Inland Diversified portfolio of purchase.

The portfolio is roughly 50% levered and our intent is to redeploy the majority of the proceeds and unencumbered assets to further improve our balance sheet flexibility. Additionally, we sold Walgreens in Zionsville, Indiana in the third quarter for $7.35 million.

The asset sale is consistent with our strategy to reduce single tenant properties as we continue to focus on larger, growth oriented assets that are accretive to our same property portfolio growth. We are confident the actions taken to date greatly enhance the quality of our portfolio.

As an example, our top ten properties representing approximately 25% of our average base rent and the total portfolio, these properties have a strong demographic profile highlighted by population and household incomes which were approximately $83,000 and $88,000 respectively in a three mile radius.

We will continue to evaluate our existing assets for any enhancement opportunities and assess each properties contribution to the growth of our overall portfolio. We also plan to continue to recycle a portion of the portfolio on an annual basis to improve the overall quality of the portfolio both demographically and growth profile.

Turning to the balance sheet, we are pleased to report that our efforts to improve our financial stability have been rewarded by Moody’s and S&P. The agency has assigned Kite with an investment grade level rating of Baa3 and BBB-, respectively.

The ability to be a corporate borrower also enables us to even be more nimble in an revolving economic environment and to be prepared to act appropriately for any future external opportunities. This marks another very important milestone for us as we continue to execute on our balance sheet and funding initiatives.

We are committed to enhancing our financial flexibility and we continue to improve our corporate level metrics and our ability to efficiently manage capital. Consistent with our guidance in February, the merger was able to bring our net debt to EBITDA down to approximately 6.5 times.

We continue to target this metric at approximately six times in the near term. Our cash and liquidity position was also greatly increased as a result of the merger and third quarter operations, which now stands at approximately $410 million with another $65 million available if we elect to increase the size of our line of credit.

We are also projecting our net free cash flow post dividend to be over $60 million in 2015. The merger and subsequent activities brought our weighted average interest rate to 3.96% and extended our portfolio to nearly a five year average year’s maturity.

We will continue to take a balanced approach to improving our financial flexibility while preserving enough capital to be opportunistic throughout our business. We are updating our full year 2014 FFO guidance to a range of $2 to $2.04 per diluted common share.

Our guidance range and the underlying assumptions include the operations of the combined-company for the second half of the year, but exclude cost related to the merger. In summary, we are extremely pleased with the third quarter results, the completion of the integration and a continued progress that our portfolio has achieved.

Our team has worked incredibly hard and continues to execute on our strategic initiatives and deliver on performance. We are very optimistic about the future of Kite and thank you for your time today. Operator, we’d like to open the call for questions..

(Operator Instructions) Our first question here come through from Todd Thomas with KeyBanc Capital Markets..

Hi, thanks good morning. Just first question, you mentioned the Naples development project that might commence next year. I’m just curious now that you have a larger combined portfolio what your thoughts are about development, from here given the company’s background.

And then on Naples, I was just wondering what conditions are necessary before you break ground in terms of preleasing and what kind of yield you might be targeting for that project?.

Well Todd, I’m taking the first part of the question in terms of overall. I mean obviously we have been pretty clear that we want to manage the development pipeline in terms of the size of the company and we’ve also worked hard over the last couple of years to significantly bring CIP down as a percentage of total assets.

And I think we’re obviously well below 10% at this point and have said that we would target approximately 5% CIP to total assets. So I think again when we’re in that $4 billion range of assets for us to say that we’re going to look to do approximately $200 million of value add through development, re-development is appropriate as a goal right now.

In terms of that particular project, that land that we have owned for quite some time and we’ve been actively engaged in designing and preleasing it for quite sometime.

In terms of the leasing as we said we have one lease executed and we have several in negotiation assuming that the leases we have in negotiation come to fruition our preleasing percentage will be very high because this is more of a big box development not a lot of small shops associated with this deal, some outparcels.

So I think once we get through that process we will be absolutely ready to start which is why we said we will start next spring. And in terms of yield type we continue to see strong incremental returns on these type of deals and we’ve continued to target those returns and incremental yields as we said between 8% to 10% yields on incremental cost.

That said, each of these deals is different and we look at each yield based on its risk profile, this one happens to have a very low risk profile once the leasing is completed. So that should cover that..

Okay, that’s helpful. And then as you look ahead John, you mentioned that you added personnel and used the merger and integration process as an opportunity to upgrade the company systems and infrastructure. And I think last quarter, correct me if I’m wrong, but the updated G&A guidance was $3.5 million to $4 million for the back half of the year.

That implied the low end of the expected range for G&A synergies.

Do you still feel good about that in the fourth quarter and heading into 2015, is that still the expectation?.

Yeah, I think overall you are right in terms of the going into the fourth quarter where we expect to see G&A and as Dan said, I think on the last call we estimated that for 2015 it would be around 4.5 per quarter. So that’s still is where we are in terms of our estimate.

And I think, I also said on the last call that we’re going to monitor that every quarter based on the efficiencies that we are seeing, that’s -- something we are looking at quite a bit is our technology and we’ve invested in that, so that actually helps us control the cost.

So I think it’s fair to say that that’s a reasonable for next year, but again when we give guidance for 2015 we’ll update that, but that’s a reasonable number..

Okay, and then this question for Dan. You know regarding the investment grade ratings, congrats on attaining those, that’s a great achievement.

What’s the thought process around an inaugural bond issue?.

Yeah, thanks Todd for that comment by the way.

The thought surrounded as we look at the debt that on the sale of the 15 asset, so it’s about $140 million of secured debt that has an average, weighted average rate with both loan in the hedge is about 4.61%, so we’re looking at as we talk to the agency that’s an opportunity for us to continue to reduce the amount of secured debt we have on the balance sheet.

So I think when you blend in the 146 million of maturities and 15 as well as the the ability to replace secured debt with unsecured debt on some of these assets sales with the potential acquisition, it lines itself up well. I think we’re looking at it now and monitoring the markets for the opportunities.

So, we do have in the near-term, use of proceeds for $250 million raise. And right now, it just a matter of timing and line ended up with market. Analyst Okay. Great. Thank you..

Thanks..

Our next question comes from Christy McElroy with Citi..

Good morning, guys..

Good morning. Hi, Christy..

So, I’m not sure if have this data point. But relative to the spreads you’ve reported. I’m wondering what’s been the average releasing spreads on just the Inland assets since you started becoming involved in the leasing. I know that you started contributing to the process well before you close on the merger.

I’m just wondering if you have a sense for what those spreads is then relative to your overall portfolio?.

Yeah, we do and I think it’s encouraging as we look at both – for us as we look at both the Inland and the [OXIF] assets we are looking at both of those because obviously of those are currently in the same store pool.

But I would tell you, just in this quarter kind of focusing on the renewal side, because that’s probably the most important metric right now. On the Inland portfolio during the quarter we had 11 renewals at just under 6% spread and on the [OXIF] side we had about eight renewals just over 5%.

So, when you compared to what we’re doing on our side that is very close which would indicate us that we already stepping in and making it difference in both of those portfolios and is a positive as we look forward for same-store NOI growth, because really same – when we look at newly spread, they can obviously be pushed around by one or two deals.

But when we look at the renewals, they generally are more consistent. So, we feel very good about that..

And then just following up on that, I mean, can you provide some sense for what you’re expecting in 2015 in terms same-store NOI growth maybe how that growth rate will change as the Inland assets are added to the pool and does that happen with Q3, 2015 results?.

In terms of 2015, I mean, we’re not prepare to say what same-store NOI is going to be 2015 today, but I do that based on what I’ve just said, we are encouraged that we will continue to be able to driver our same-store NOI growth overall.

And I think looking forward, what we’re doing internally both operationally and system management is helping us track that faster. So, I think we feel very good about where we’re going.

Look as I mentioned in prepared remarks, we have – for two years we’ve averaged over 4% same-store growth, that’s exceptionally and its with a – it doesn’t happen just by getting up and coming into the office. It happens by grinding it out everyday. So I think we’re going continue to do that and we feel very good.

The market is absorbing and there’s less and less space available. So, as your overall pool becomes more least, its more difficult to generate really strong numbers. However that said, we’re outperforming the group pretty substantially. So I believe that we will continue to perform at the top half for sure, if not the top 5%..

Okay.

And then just lastly on the 2015 asset sale, what will be your net debt to EBITDA pro forma for the sale and did you say what your total portfolio ABR will be, pro forma for the sale?.

I think in terms of the ABR what we said is after the sale, that our overall portfolio was around approximately $15 square foot..

Okay..

And that we wanted to point out – that was important to point out the remaining assets that we acquired in the merger are at $17 a square foot which just highlights the really, really good deal we got here in the sense of the quality of the real estate being that strong and what we’re able to negotiate. So, I think we said that..

Yeah, Christy, the another thing as John mentioned, one of the items relative to the net debt to EBITDA after the transaction, I mean, its going to depend on the acquisition opportunities we see in the redeploying of that capital.

I think as we look at the overall metrics on the balance sheet, the opportunity to reduce secured debt as well as increased percentage of our unencumbered NOI, the total NOI is a really good opportunity as we look out with this asset sale.

But pro-forming it out I think as we talk a little bit our first blush with this would be we’d able to retain about $60 million of cash to pay down debt, but its all going to depend as John mentioned. We’re going to pay down debt initially and then look to deploy as there is opportunities. So it’s tough to say pro forma.

I think over time we would like to continue to drive from 6.5 times to 6 times. Is this is the transaction that, that will occur, I mean, I think we want to make progress in that regard. But given you a set numbers is going to be difficult as we work through the potential acquisitions that line up with dispositions..

Okay. Thank you then..

Thanks.

Thanks..

(Operator Instructions) Our next question comes through from RJ Milligan with Raymond James & Associates..

Hey, good morning guys. Just want to follow-up on Christy’s question with regards to the [OXIF] portfolio as well as the Inland portfolio.

If you guys just give some indications to what the same-store NOI growth was for this quarter?.

I mean, we didn’t break it down that way RJ what we said that the spreads were very similar to our spreads in particular the renewal spreads were right now top of ours. So basically when you really look at over the long-term the way that you generate same-store NOI growth is to generate strong renewal spreads over the long-term.

So, that’s what we’re indicating. We’re not breaking down individual portfolio, same-store NOI. But you can feel pretty good that we’ve given color around the fact that the spreads are almost identical to what we’re getting in the standalone KRG portfolio..

And RJ real quick just to point out as well, it’s difficult for us to compare our current quarter of -- the third quarter of 2014 back to the third quarter of 2013.

Because as we’ve talked about, we had a lot synergies related to Inland’s portfolio coming over to us, but regard to as we talked about, the management fee that they charge was about 4.5%. We’re doing this at about 1.5%. So, obviously when you look at those properties coming over and just the synergies, there’s going to net plus in that regard.

But I think the one thing we want to point is as we talked about $35 million as John mentioned in the quarter for, the Inland portfolio was performing at or better than we expect when it came online from a cash perspective..

All right. Thanks guys. That’s all I have..

Hey, great. Thanks..

Your next question is from Craig Schmidt with Bank of America..

Thank you.

That same-store NOI – is that with or without redevelopment?.

Without redevelopment, now what – Craig, what we’ll do is we disclose in detail the properties that we pull out for redevelopments such as you look at Gainesville, Bolton, et cetera, we pulled out t for redevelopment, that when we replaced tenants, as John mentioned, there was as Sprouts, two fresh markets and total line that were replacement tenants.

So, when those boxes were vacant we were taking hit in the same-store NOI, so now when they rolled back obviously get some pick up from occupancy gains. But as far as overall redevelopment whether it’s King’s Lake, Bolton, Gainesville, those are taken out and then left out of the same-store pool from a year when they put back into the operations..

Great.

And then of the $100 million of potential repositioning projects, how many are from Kite Legacy and how many are from Inland Diversified?.

I mean, I think it’s a pretty good balance, Craig, we’ve got probably based on the fact that we have a fairly equal number of properties per portfolio is pretty equally balanced..

Okay. Thank you..

Thank you..

Next question here comes through from Tammy Feak of Wells Fargo Securities.

Hi.

I was just curious on what you’re seeing in terms of acquisitions in the market today, stuff that would maybe interest you and if you could just comment on the pricing you’re seeing in the market today?.

Sure. I mean, the market is obviously competitive and we’re pretty focused right now on continuing to significantly improved the overall quality as we have been, so that kind of requires us to dig pretty hard to find unique opportunities.

But I think we’re finding good opportunities, Tammy, I think in particular we’re finding deals where we see upsides. So maybe the going-in yield is lower than we’ve seen historically. But we have some repositioning or development or just re-tenanting opportunities that less aggressive owners have try to pursue, so we see some of that.

But look the bottom line is, you saw trade, you see a trade about to happen in our space at a very low cap rate, which should indicate to everyone that everyone needs to look at all the cap rates. I mean cap rates are well below I think public market is reflecting. So assets of our quality, of our combined portfolio post this disposition.

I mean these are very, very hard to get and to get a [six] in front of it is very hard to do, quite frankly. So, it’s competitive but it reflects the fact there’s a very low supply of very, very high quality stuff and that’s what we own. So, I think the market is been slow to respond to that. .

Okay.

And I’m just curious on the guidance side for occupancy, does that include the Inland portfolio or is that just the Kite legacy properties?.

I’m sorry, could you ask that one more time? For what portion?.

Sorry, the guidance for occupancy of 95% to 96%, just curious does that included both?.

I mean, regionally that when we gave that guidance, that included just Kite, but as we go forward, I mean, we’re 94.9%, so I think we’re going to – our objectives are to sneak into that 95% for the combined portfolios as you look at year end.

So I think on a combined basis their leasing percentage was very similar to ours, so we did not adjust that number..

Okay. And then maybe just sticking with occupancy, its look likes year-over-year the number for your overall portfolio dropped 100 basis points. I guess I’m just curious what would specifically is driving or is that something going in the Inland portfolio or if you could provide just some color on that? Thank you..

So, one of the things Tammy that when you look – when we provided this supplemental information on the last supplemental, we included – we’ve never included ground leases in our number and Inland had included ground leases. So, when we brought that information into our systems we felt that was more appropriate to leave ground leases out.

So when you look at the percentage leased, that 94.9% excludes our ground leases where before we had kind of pro forma that there would be at 95.5% lease percentage which included their ground leases. So, I guess to summarize, we treat non-own square footage, which is also square footage that’s ground lease to tenants is not in our numbers.

Now when you look at as John was talking about, it’s important, that’s over $18 million of ABR.

So, as you look how that’s allocated from that NAV perspective and the cap rate is put on that and what that would treat for in the markets, that’s one item, but we also did not think it was – we thought it was cleaner to leave the ground leases out of the lease square footage..

Okay. Great. That’s helpful. And then maybe just one more on same-store property operating expenses, they were down year-over-year in the third quarter.

Can you just talk a little bit about what is driving that, and is that was something that you were expecting in the quarter?.

I think -- we were looking into that number as well and trying to see if there’s one particular item. And I thing when you look at there was a number of things going up and down. I think as we get this larger portfolio it’s an opportunity for us to really generate efficiencies.

I think the key point when you look at the combined portfolio the recovery ratio in totality for the retail portion was 89%, which I think is a very positive on a go forward basis that we’re going to be able to continue to squeeze synergies out of the portfolio.

But nothing Tammy that’s anything that I would say is a run rate or some issue relative to expenses that we can look at is a positive or negative..

Okay. Great. Thank you..

Thanks..

(Operator Instructions) And our next question is from Chris Lucas with Capital One Securities..

Good morning, guys, and apologize in advanced if you guys have already talked about these items.

But John maybe if you could just give us a sense us to now with the new portfolio how much of the key tenant portfolio reviews you guys have done at this point and what’s the plan sort of in terms of timely you kind of get through them all?.

Sure. Yes, I mean, we’ve made both Tom McGowan and myself have made a priority of making sure that one of the first things we did even prior to closing was engage in conversations with our top tenants and when you look at the combined top tenant list, it is extremely strong.

So I’d say, we’re well through our total portfolio review, but that something that you do really on a quarterly basis where we’re constantly updating the top tenants, but I would say in general our top customers understand the combined portfolio.

They understand where the opportunities lie for example in the Office Depot, OfficeMax portfolio that we have. We’ve been through that portfolio with every major box tenant that we think it applies and there’s a lot of interest there. So I’d say from my perspective we’re well through that.

But we’re really only scratching the surface in our ability to leverage opportunities because the overall kind of supply demand characteristics continue to move in our favor. So, I would say, every quarter that there is not material square footage deliveries in high, high quality retail, that just gets stronger. Tom you want to add to that..

Yes, as John mentioned, I mean, it’s a continual process. And we were out last week on a road meeting with head of real estate, great company on the grocery side of the business and we’re going to continue to push that as aggressively as possible.

The great part about getting out in down front is we continue to learn about the business, learned about the sales and look for ways to make them more integral part of the business..

Okay. Great.

And then, Dan a couple of sort of a very detail questions again for modeling purposes really, the G&A for the quarter, did it include the cash bonuses for executives that were earned as part of their closing the transaction or was that in a separate area?.

Yes. That was not in the G&A line item. The majority of the cash bonuses were in the merger cost line items..

Okay. And then on the, I guess just curious about the tenant improvements for the quarter was down sequentially.

If you got a larger portfolio is basically a little over what it was year ago, just curious is to why that number wasn’t just bigger?.

I think we have one particular tenant improvement, we had an anchor box at Lithia Crossing that spent about $0.5 million on. And I think when you look – I think its all timing Chris about how these are going to come into play.

Some of them for instance, some of the larger tenants were spending TI dollars on whether it’s the tenants that are in Gainesville or Bolton Plaza or as John mentioned several times, that we are signing at Tamiami Crossing. Those are obviously not going to go through that line because they are first generation space in development project.

So, I think sequentially we’ve had a lot of tenants opening in 2014 or 2013 as John mentioned. We’ve got some occupancy gains from Sunland Fresh Market, et cetera. So we’ve had some fairly large spend relative to anchor boxes and we just didn’t have that spend this quarter, but its all timing about when an anchor box going to come in.

We’ve had a couple of others that have been signed, so you’ll see that move around. And we’ll make sure that we foot don’t disclose as that number goes up and down relative to anchor tenants..

How do you feel about the number relative to sort of forward periods, is this a reasonable number or is it like? I'm just trying to think about it in terms of context of our modeling?.

I think that’s tough, again it’s all timing when you looking from a – when you look re-occurring CapEx and when you look at the portfolio as a whole, Inland had a fairly new portfolio. So I think when you look at that number you’re probably looking at neighborhood at $0.12 a foot or something around there would be a reasonable run rate.

TIs this quarter if you look at our – if you look at renewal for instance, we spend like $0.41 a foot whereas we typically -- that number is fairly light when it goes to renewal. So it’s tough to give you a specific run rate and we’ll look to do that as we give 2015 guidance.

We will look to do that with what we see as being renewed and out in our projections..

Okay. Thanks. And then last question from me, again, more of a modeling question.

How should we think about the split in the NOI between the pool that will transact on December 15 and the one that will transact on March 15 or by March 15?.

Yes. So when you look at that split from a disposition perspective, the NOI assuming a six-six cap rate on $318 million. About 54% will be in December we’re projecting and remainder in March. So the revenue in the NOI split is very similar from a cash perspective between those two periods..

Great. Thanks a lot. I appreciate it..

Thank you..

Okay. And we have no further question. So John, I’ll pass it back to you for any closing comments..

Okay. Well thank you everyone for joining us today and as we mentioned extremely excited about the progress we’ve made. And clearly we’ve met and exceeded our expectations relative to the integration and we look forward to continuing to push that number forward. So thanks everyone. Have a great day..