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$FRT, a realty trust company, sealed a JV with Primestor Development and the former holds approx. 90% interest in it. The JV is seeded with 100% interest in 6 shopping centers and 25% minority interest in another. The properties’ total area is 1.3MM sq ft. $FRT’s investment in JV is approx. $345MM including $20MM to redevelop one of the centers.
Even though REIT $FRT's 1Q17 revenue climbed 4.5% to $207MM, its net income declined to $56.1MM, or $0.78 per share, from $76.8MM, or $1.10 per share a year ago. However, FFO available for common shareholders was $105.8MM, or $1.45 per share, higher than $97.6MM, or $1.38 per share in 1Q16.
$FRT acquired Riverpoint Center, a 211,000 square foot grocery anchored community shopping center with surface parking on 17 acres of land in Chicago, Illinois. The property is located in affluent Lincoln Park and is 3.5 miles northwest of downtown Chicago. The Trust sourced the acquisition off-market for $107MM cash.
$FRT's Board of Trustees declared a regular quarterly cash dividend of $0.98 per common share, resulting in an indicated annual rate of $3.92 per common share. The dividend will be payable on April 17, 2017 to common shareholders of record as of March 14, 2017.
$FRT reported a drop in 4Q16 earnings due to last year's gain on sale of real estate and change in control of interests. Net income fell to $57.9MM or $0.80 per share from $67.82MM or $0.97 per share last year. Revenue grew to $204.11MM from $192.51MM. Funds from operations per share rose to $1.45 from $1.37.
$FRT announced the acquisition of Hastings Ranch Plaza, a 274,000 sq. ft. shopping center in Pasadena, California. The Trust acquired the leasehold interest in the shopping center for $29.5MM cash. Hastings Ranch is currently 100% occupied & $FRT expects increasing the value over time through potential redevelopment and/or re-leasing of space.
In 3Q16, $FRT’s same-center property operating income grew 1.5% over 3Q15, including properties that are being redeveloped and 0.4% when excluding these properties. The impact of anchor vacancies, both proactively pursued and otherwise, weighed on the three month results and quarter-end occupancy.