Ramco Gershenson: FFO Guidance Increases . . . Again

FARMINGTON HILLS, MI-Ramco Gershenson Property Trust enjoyed another positive quarter, showing rental increases of 3.4% and same-center NOI growth of 3.4%, leading to a cash NOI of $23.4 million (an increase of close to $3 million, year-over-year). The upbeat metrics prompted executives at the Q3 earnings call to announce an FFO guidance increase of $.02 per share, marking the second time this year that guidance was increased.

While REIT president and CEO Dennis Gershenson pointed to credit-worthy tenants and an increase in non-anchor leased occupancy (which has led to a consistent revenue stream), senior vice president, asset management Michael Sullivan noted that lease transactions topped 300,000 square feet for the quarter with the cash rental spread increasing by 5.4%. “Also in the third quarter, we renewed over 87% of all expiring leases at a rental growth of positive 4.4%, and are on target to renew over 80% of all expiring leases in 2012,” Sullivan added. Anchor occupancy, in the meantime, held steady at 96%, with anchor boxes vacancies trending downward. Smaller shop leasing increased as well, with the executives explaining that many smaller shop spaces have been, or are in the processes of being, reconfigured.