Developers Diversified Realty Corp. (DDR), an Ohio-based real estate investment trust, Thursday reported a sharp decline in second-quarter funds from operations or FFO due to a drop in gains from disposition of real estate. Revenues also declined from last year. The company reaffirmed its FFO guidance for fiscal 2008.
Second-quarter funds from operations applicable to common shareholders decreased to $99.1 million or $0.82 per share from $159.3 million or $1.26 per share in the comparable period a year earlier. On average, 9 analysts polled by First Call/Thomson Financial expected earnings of $0.88 per share for the quarter.
Net income applicable to common shareholders for the quarter plunged to $29.4 million or $0.25 per share from $111.4 million or $0.89 per share in the year-ago quarter.
Total revenues for the quarter declined to $232.71 million from $252.10 million in the prior-year quarter. Analysts expected the company to report revenues of $230.12 million for the quarter.
FFO applicable to common shareholders for the six-month period dropped to $198.7 million or $1.65 per share from $265.4 million or $2.18 per share in the corresponding period a year earlier. Year-to-date net income applicable to common shareholders decreased to $62.2 million or $0.52 per share from $160.2 million or $1.33 per share in the first half of 2007.
Total revenues for the first six months of 2008 advanced to $474.07 million from $470.83 million in the same period a year ago.
Gain from disposition of real estate for the quarter, comprising sale of two shopping center assets, was $1 million, compared to $54.01 million in the prior-year quarter.
The company also reaffirmed its 2008 FFO guidance in the range of $3.95 per share to $4.05 per share. The Street expects full year earnings of $3.92 per share.
DDR closed Thursday's regular trading at $32.25, down $3.28 or 9.23%, on a volume of 2.99 million shares.
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