(RTTNews) - Real estate investment trust Kimco Realty Corp. (KIM: News ) reported Wednesday a 36% year-over-year drop in fund from operations or FFO for the third quarter, hurt by a decline in occupancy as well as loss of rent from few companies that closed down. Excluding charges and costs, FFO per share for the quarter dropped 56%, and came in line with analysts' expectations. The company also lowered its FFO forecast for the full year 2009.

Third Quarter Results

The New Hyde Park, New York-based company posted FFO of $112.55 million or $0.30 per share, lower than $176.89 million or $0.68 per share in the prior-year quarter. On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.31 per share. Analysts' estimates typically exclude special items.

Excluding non-cash impairments and charges for the acceleration of deferred costs from early debt repayment, FFO for the quarter dropped to $117.9 million or $0.31 per share from $182.80 million or $0.70 per share in the year-ago quarter.

Net income available to common shareholders for the quarter totaled $28.29 million or $0.07 per share from $96.76 million or $0.37 per share in the comparable quarter a year ago.

Revenues from rental properties for the quarter edged up to $191.89 million from $189.95 million in the same quarter last year. Nine Wall Street analysts had a consensus revenue estimate of $187.77 million for the quarter.

Peer Performance
Among Kimco's peers, Indianapolis, Indiana-based Simon Property Group, Inc. (SPG: News ) reported last week a 2% year-over-year increase in third quarter funds from operations to $473.07 million or $1.38 per share, helped by stable performance of franchise retail assets within its regional mall, premium outlet and mills platforms. Quarterly revenues decreased to $924.93 million from $935.59 million in the prior-year quarter.

Another peer, Houston, Texas-based Weingarten Realty Investors (WRI: News ) reported last week a decline in FFO for the third quarter to $29.73 million or $0.25 per share from $59.89 million or $0.71 per share, primarily reflecting a non-cash impairment charge. Total quarterly revenues decreased to $144.54 million from $153.97 million a year ago.

Other Metrics

Net operating income or NOI, for the third quarter edged down to $133.66 million from $135.84 million in the prior-year quarter, and total rental property expenses were $58.22 million, up from $54.11 million in the year-ago quarter.

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