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FARMINGTON HILLS, MI-Ramco-Gershenson Properties Trust reported its second quarter results today, indicating a decline in both funds from operation and income but an increase in occupancy.

FFO for Q2 totaled $11.3 million, $0.52 per share, compared to 2008′s second quarter FFO of $13.2 million, $0.62 per share. A portion of this decline is due to the proxy contest and strategic review process the company is undertaking, president and CEO Dennis Gershenson told investors this morning. Excluding those items, FFO would have been $0.56 per share.

Net income for Q2 was nearly half of what is was the year before. This time around net income available to Ramco shareholders totaled $1.6 million, $0.08 per diluted share, a decline from $3 million, $0.16 per diluted share, for the same period in 2008.

First and foremost on Ramco’s list of to-dos is refinancing its $250 million credit facility. Gershenson describes the company as on the one-yard-line of the process but moving forward.

During the second quarter Ramco renewed 47 leases. The 123,063 square feet of renewed space brought in rents 5.7% over the earlier rental rates. Additionally 27 new leases were signed for a total absorption of 116,143 square feet. Rental rates on the new leases were 31.6% over the portfolio average. Together these deals moved the portfolio to 91.3% leased, a 40-basis-point increase over the first quarter.

“The Linens ‘n Things and Circuit City bankruptcies continue to impact many of our key operating metrics, however, we are optimistic about our planned timing for re-leasing these vacancies,” Gershenson said. “During the remainder of the year, we will continue to focus on internal growth within our core shopping center portfolio, improving our balance sheet and increasing liquidity.”

As part of that focus, Ramco executives say the company is looking to make strategic dispositions of non-core assets. Most dispositions will be in “quality net-land leases” for which Gershenson said there is a “steady and vibrant” market. Specific assets to be sold were not indicated, although executives said at least three sale deals were in the works. The deals will garner roughly $30 million, the profits to be used to pay down the company’s line.

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