Randall Square in Geneva, IL, one of the properties Inland acquired from its partner NYSTRS

OAK BROOK, IL-Inland Real Estate Corporation, a publicly-traded REIT that owns and operates retail centers in the Midwest, executed 366 leases for 2,150,487 square feet in 2013, an increase in square feet leased of 23.7% over the prior year.

The firm released its year end financial reports recently, and among the highlights was a total portfolio leased occupancy was 95.2% and financial occupancy was 93.1% at December 31, 2013, representing increases of 120 basis points and 150 basis points, respectively, over year end 2012.

“Our company reported strong results for 2013, including a 12.5% increase in FFO adjusted per share, primarily due to a 3.7% increase in consolidated same-store net operating income and higher income from unconsolidated joint ventures,” said Mark Zalatoris, president and CEO. “I am pleased to note that we set a new Company record for the amount of square feet leased in a single year, driving total portfolio leased occupancy to 95.2% at year end, a gain of 120 basis points over last year, while generating robust rent spreads on both new and renewal leases.”

Fourth Quarter and Full Year 2013 Highlights

  • Reported Funds from Operations (FFO) per weighted average common share of $0.19 and FFO adjusted for non-cash items net of taxes per share of $0.26 for the fourth quarter of 2013, representing a decrease of 29.6% and an increase of 8.3%, respectively, over the fourth quarter of 2012.

  • Reported FFO per weighted average common share of $0.95 (diluted) and FFO adjusted per share of $0.99 for 2013, representing a decrease of 1.0% and an increase of 12.5%, respectively, over 2012.

  • Consolidated same-store net operating income (NOI) increased 0.4% for the quarter and 3.7% for the twelve months ended December 31, 2013, over the comparable periods in 2012. Excluding lease termination income, consolidated same-store NOI rose by 0.4% for the quarter and 2.0% for 2013.

  • The firm’s total portfolio leased occupancy was 95.2% and financial occupancy was 93.1% at December 31, 2013, representing increases of 120 basis points and 150 basis points, respectively, over year end 2012.

  • Executed 366 leases for 2,150,487 square feet within the total portfolio in 2013, an increase in square feet leased of 23.7% over the prior year.

  • For the fourth quarter 2013, average base rent for new and renewal leases signed in the total portfolio increased by 21.0% and 7.0%, respectively, over expiring average rents for the quarter. For the full year 2013, average base rent increased by 11.8% for new leases and 8.5% for renewal leases, over expiring rents.

  • For the full year 2013, Company sold nine properties, portions of three other assets and 67.6 acres of land for a total price of $72.7 million and a net gain of $6.9 million.

Zalatoris continued: “We are executing a disciplined growth program designed to further improve the quality and diversification of our portfolio by utilizing proceeds from non-core asset sales and joint venture partner capital to acquire established retail assets in vibrant communities within the Central and Southeastern US. Importantly, in 2013 we brought our asset-based joint venture with NYSTRS full cycle when we acquired our partner’s interest in the 13-property IN Retail Fund entity, thereby increasing the size of our consolidated portfolio by 2.3 million square feet and simplifying our corporate structure. We believe our joint ventures with institutional partners like NYSTRS and PGGM, as well as with established developers, are a capital efficient means to expand our portfolio and enter new markets while mitigating risk. We are excited about the opportunity set in front of us for 2014 as we look to drive long term shareholder value with organic growth, augmented by thoughtful investment in acquisitions and development.”

For the quarter ended December 31, 2013, FFO attributable to common stockholders was $18.8 million, compared to $24.0 million for the fourth quarter of 2012. On a per share basis, FFO was $0.19 (basic and diluted) for the fourth quarter of 2013, compared to $0.27 for the fourth quarter of 2012.