The charge resulted from a community center property classified as held-for-sale, while the G&A came from severance charges. The REIT is budgeting $19 million in G&A expenses for 2005, which is about $4 million more than it usually expects, says Glimcher SVP and CFO Mark Yale.
The REIT posted a loss of $1.1 million, or 3 cents per share, for the second quarter compared to net income of $2.6 million, or seven cents per share, for the same period last year. FFO decreased in the second quarter to $19.3 million from $21.6 million in the second quarter 2004.
Yale points out that FFO would have been 52 cents per share for the second quarter excluding the charge. However, analysts had expected FFO of 55 cents, according to Thomson First Call. Total revenues for the second quarter were essentially flat at $84.7 million compared to $85.4 million for the same period last year. However, same-mall NOI increased 2.3% and average rents increased 1.4% to $24.58 per sf. Occupancy also improved 160 basis points to 88%, while releasing spreads were up 10%.
"We're quite encouraged by our second quarter results," says Glimcher president and CEO Michael Glimcher. He adds that he expects the rest of the year to show continued improvement. To that end, the REIT reiterated its third quarter earnings guidance of 54 cents per share to 60 cents per share.
At June 30, 2005, the company's mall portfolio comprised of 25 properties located in 16 states with GLA totaling approximately 21.9 million sf.
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