FFO available to common shareholders was $81.8 millionfor the third quarter compared to $74.9 million forthe third quarter 2004, an increase of 9.2%. Netincome increased 52.4% to $46.5 million or 43 centsper share compared to $30.5 million, or 30 cents pershare for the same period last year. The increase innet income is attributed to the acquisition of 15properties from Caribbean Property Group in January2005 and gain on sale of real estate assets.
"Our portfolio continues to perform well," Wolsteinnoted during the call, adding that recent real estatedeals such as the Mervyns joint venture withMacquarie DDR Trust and the disposition of 25 officeand industrial buildings totaling roughly 3.2 millionsf for about $177 million, allows the REIT to focus onits core business.
During the quarter, the REIT was upgraded by Moody'sInvestors Service. "From a financial viewpoint, we'rewell-positioned to accommodate future growth andfuture change in our operating environment," saidDDR's CFO William Schafer during the earnings call.
Also during the quarter, DDR experienced strongleasing activity, with 128 new leases totaling 770,000sf and 207 renewals totaling about 745,000 sf signed.Rental rates on new leases increased by 10.3% to$12.48 per sf, and rental rates on renewals increasedby 11% to $14.06 per sf. At the end of the quarter the portfolio was 96.0% leased.
DDR owns and manages roughly 500 retail properties in44 states, as well as Puerto Rico, totaling 113million sf.
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