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Ramco-Gershenson Reports 3Q FFO Decrease

FARMINGTON HILLS, MI-The shopping center REIT acquires four centers for $163 million and begins $22 million in work on seven others. However, a one-time impairment charge related to the sale of a minority stake in the Fountain Walk shopping center results in a dip.

By Dan Heaton | Updated on October 22, 2004

FARMINGTON HILLS, MI-The sale of a minority stake in a Novi shopping center helped cause a decrease in funds from operations for Ramco-Gershenson Properties Trust. FFO and earnings from continuing operations were negatively affected by a $0.24 per share one-timeimpairment charge related to the sale of the company’s minority equity interest in the Fountain Walk shopping center.

With the exception of the one-time charge, FFO per share tracked expectations at $0.58 for the quarter. Taking into consideration the one-time charge for the three months ended Sept. 30, FFO available to common shareholders decreased 31.6%. Total revenues increased23.6% while income from continuing operations decreased $2.5 million.

The company acquired four grocery-anchored shopping centers during the third quarter and has seven shopping centers under redevelopment. “Unfortunately, our FFO numbers for the quarter do not reflect our accomplishments for the better part of the year, due to the recognition of an impairment loss for the Fountain Walk shopping center as the result of the sale of our equity interest,” says Dennis Gershenson, president and chief executive officer. “We understand that it is absolutely critical that we demonstrate positive, sustainable FFO growth and feel that the numbers for the third quarter do not reflect our successes this year and our plans for future growth.”

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