Kite Realty Group Trust’s funds from operations in the second quarter fell to $7.5 million, or 11 cents per share, compared to $8.9 million, or 15 cents per share, for the second quarter of 2009, the Indianapolis-based developer said Wednesday.
Funds from operations, or FFO, is a common performance figure used by real estate investment trusts to define cash flow from their operations.
The company’s performance met the expectation of analysts.
Kite's loss of $4 million in the second quarter resulted from a $3.5 million non-cash depreciation charge related to the redevelopment of three properties, as well as decreased construction activity and lower profits on land and outlet sales.
Kite reported a profit of $300,000 in the year-ago period and a loss of $1.1 million in the previous quarter.
Second-quarter revenue fell nearly 21 percent, to $24.8 million.
“We are again pleased with the momentum of our leasing efforts during the quarter as we increased our retail leased percentage by 100 basis points and signed several new anchor tenant leases,” CEO John A. Kite said in a prepared statement. “We continue to look for select growth opportunities while maintaining our focus on liquidity and the balance sheet.”
Occupancy in its 51 retail centers was 91 percent, up slightly from 90 percent in the previous quarter.
Kite signed or renewed 39 leases in the second quarter totaling 216,200 square feet. The amount included 35,000 square feet from a new anchor lease for Nordstrom Rack to replace an Office Depot at Rivers Edge in Indianapolis.
Rental rates for the 16 lease renewals were 0.4 percent below previous rents.
Company shares closed Wednesday at $4.98 each, after reaching $5.97 in late April.