Inland Real Estate posts lower results for 2Q

OAK BROOK — Inland Real Estate Corp. on Wednesday reported lower second-quarter results as the shopping center owner absorbed hefty charges related to a write-down on a joint venture.

The real estate investment trust reported funds from operations, or FFO, declined to $5.7 million, or 6 cents a share, in the three months ended June 30. That compares with FFO of $6.1 million, or 7 cents a share, in the same quarter last year.

FFO, which adds such items as amortization and depreciation to net income, is considered a key measure of a real estate trust's performance.

The latest results included $11.7 million in charges following the company's decision to reduce the fair value of a joint venture project. Excluding the charges and other one-time items, Inland Real Estate's FFO amounted to 20 cents a share, the company said.

On that basis, the results matched analysts' consensus forecast for FFO of 20 cents a share, according to FactSet.

The charges also led Inland Real Estate to a wider loss for the quarter.

The company reported a loss of $10.3 million, or 12 cents a share, compared with a loss of $6.9 million, or 8 cents a share, a year earlier. Analysts had anticipated a profit of 2 cents a share.

Revenue rose to $42.7 million from $39.6 million, beating analysts' forecast for $36.5 million.

Leased occupancy for the REIT's total portfolio rose to 94.4 percent at the end of the quarter from 92.4 percent a year earlier.

For fiscal 2011, Inland Real Estate expects FFO per share will range from 78 cents to 84 cents. Analysts are anticipating FFO of 78 cents a share.

Inland Real Estate owns interests in 163 shopping centers and other properties, primarily in the midwestern U.S.

Shares fell 28 cents, or 3.3 percent, to $8.10 in afternoon trading.