"The second quarter of 2005 was rewarding to the company and its shareholders on a number of fronts," Bob Parks, president and chief executive officer said during Thursday's earnings call. "The first the quarter marked the one-year anniversary of the listing and the public trading of Inland Real Estate Corp. shares on the NYSE, commenced on June 9 of last year. In one-year's time investment and IRC shares produced an impressive 42%."

Parks went on to report a 10.6% increase in the company's Q2 funds from operations to $22.6 million, while FFO per common share increased to 34 cents, a 9.7% increase compared to the same period last year. Net income rang in at $10.7 million for the three-month period, marking a 4.8% decrease compared to a year ago, while net income per common share slipped 5.9% to 16 cents. In response to the decrease, Parks faulted the net-income effect of including additional properties previously held for sale, but now reclassified as held and used.

Same-store net operating income increased 6% to $28.2 million compared to $26.6 million last year, which the company says is the result of reduced non-recoverable operating expenses and positive occupancy and leasing spreads. Total revenues fell 2% to $45.2 million for the quarter from $46.1 million, which the company attributed to the contribution of properties to the Nystrs joint venture late last year. This was partially offset by the new acquisitions in the second quarter.

In its second quarter, the Inland acquired two retail centers. In Orland Park, IL, the REIT purchased the 598,054-sf Orland Park Place for $76.9 million, and in Sheboygan, WI, the company acquired the 74,700-sf Northgate Shopping Center for $9.7 million.

During its Q2, the company inked 104 new and renewal leases totaling 383,000 sf. At the end of the quarter, Inland says its portfolio was 96.5% leased, compared to 95.3% for the prior year. Inland Real Estate Corp. boasts a 145-property portfolio, consisting of 13 million sf of real estate and more than $1.4 billion in assets spread throughout eight states.