DETROIT-Both Taubman Centers and Ramco-Gershenson PropertyTrust, two local mall REITs, acknowledged slight losses in Fundsfrom Operations and flat same-store sales in their Q2 resultconference calls Wednesday. However, both trusts also predict thesedata points will improve by the end of the year, and see newdevelopment and acquisitions on the horizon.

Farmington Hills, MI- based Ramco-Gershenson, which has equityinterests in 87 retail shopping centers totaling almost 20 millionsquare feet, had a drop to $10 million FFO for Q2 2010, compared to$11.3 million a year earlier, according to CFO Greg Andrews. Alsoduring the recent quarter, same-center net operating incomedecreased 1.3% compared to Q2 2009, and was flat compared to Q12010, he said during the firm’s conference call.

However, Dennis Gershenson, president and CEO, said even thoughrental rates are down compared to better times a few years earlier,the company is still looking for new acquisitions. The trust hascompleted due diligence this week on a supermarket-anchored center,with an asking price of $15 million, Gershenson said during thecall. “This potential acquisition reflects our interest indiversifying our portfolio into major, metro-markets beyond thosewhere we have a significant concentration. The demographics for thetrade area are superior. The supermarket anchor is the number onegrosser in the States and we believe that the cap rate for thecenter is above market,” he said. Gershenson refused to divulge thename or location of the center.

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