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FARMINGTON HILLS, MI-Shopping center REIT Ramco-Gershenson Properties Trust said this week that its FFO increased 11.3% for the second quarter of 2005. Net income rose 15%, compared to the same period last year.
"We are pleased with our solid financial results for the quarter and we are on track with our business plan for the year," said Dennis Gershenson, president and CEO.
Farmington Hills-based Ramco-Gershenson has been in an aggressive acquisition mode, working in a $450 million joint venture with the New York-based Clarion LionProperties Fund. In its most recent acquisition, the company acquired a Home Depot anchored shopping center in Livonia, marking its 10th acquisition in six months.
In its quarterly statement, the REIT said diluted FFO for the three months ending June 30, increased $1.28 million to a total of $12.55 million compared with$11.28 million for the three months ended June 30, 2004. Net income increased $541,000 to a total of $4.14 million compared with $3.6 million in 2004.
For the first six months of 2005, diluted FFO increased 10.2% or $2.27 million to a total of $24.5 million compared with $22.2 million for first six months of 2004. Net income increased 13.1% or $1.05 million to a total of $9.05 million compared with$8 million in 2004. "As a result of our productive three months and the business opportunities on the horizon, we remain bullish about our prospects," Gershenson said.
During the quarter, the REIT opened 28 new non-anchor stores, at an average base rent of $16.35 per sf, an increase of 13.4% above portfolio average rents. The REIT also opened two new anchor stores at an average base rent of $10.85 per sf, a 54.8% increase above average rents paid by anchor tenants. In addition, the REIT renewed 19 non-anchor leases, at an average base rent of $14.52 per sf.
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