DETROIT-Both Taubman Centers and Ramco-Gershenson Property Trust, two local mall REITs, acknowledged slight losses in Funds from Operations and flat same-store sales in their Q2 result conference calls Wednesday. However, both trusts also predict these data points will improve by the end of the year, and see new development and acquisitions on the horizon.

Farmington Hills, MI- based Ramco-Gershenson, which has equity interests in 87 retail shopping centers totaling almost 20 million square feet, had a drop to $10 million FFO for Q2 2010, compared to $11.3 million a year earlier, according to CFO Greg Andrews. Also during the recent quarter, same-center net operating income decreased 1.3% compared to Q2 2009, and was flat compared to Q1 2010, he said during the firm’s conference call.

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

At Bloomfield Hills, MI-based Taubman, Q2 FFO was $33.8 million, or 61 cents per share, compared with $35.1 million, or 65 cents per share, in Q2 2009. Robert Taubman, chairman, president and CEO, also said the trust’s comparable center NOI was virtually flat, declining only 30 basis points. “For the full year, we currently expect our NOI to be down about 2%,” he said during his trust’s conference call.

Ho pointed to positive news, such as tenant sales per foot being up 12.1% from the first quarter, led by malls in Florida and Michigan. The company is also increasing the lower end of its guidance range for 2010 FFO, from $2.55 per share to $2.65 per share.

Taubman also said the company believes it will have a handful of new developments in the next decade in the US, and even more in Asia. “As we've analyzed the business we believe it’s quite likely the pool of good development opportunities in this sector will exceed those of traditional malls. We will be disappointed if by the end of 2011 we haven't announced our involvement in at least one or two strong outlet opportunities,” Taubman said during the call. The trust also plans to refinance the Norfolk, VA-based MacArthur Center, which has a $128 million loan, in the third quarter.

Taubman also said the firm also will announce a new president of Asia operations by the end of the year. The trust has 26 owned, leased or managed projects in the United States.