WRAPUP 1-Retail-focused REITs post Q3 FFO above market views
* Acadia Realty, Ramco-Gershenson Properties beat market
* Acadia raises FY09 outlook
* Ramco-Gershenson cuts FY09 FFO view citing offering
* Rental rates up in Q3
Oct 27 (Reuters) - U.S. retail-focused real estate investment trusts Acadia Realty Trust (AKR.N) and Ramco-Gershenson Properties Trust (RPT.N) posted better-than-expected third-quarter funds from operations, helped mainly by higher rental rates.
White Plains, New York-based Acadia Realty Trust also raised its 2009 FFO outlook to $1.26 to $1.30 a share, from its prior forecast of $1.07 to $1.16 a share.
Analysts on average were expecting the REIT to post an annual FFO of $1.14 a share, according to Thomson Reuters I/B/E/S.
For the third quarter ended Sept. 30, Acadia posted FFO of $13.4 million, or 33 cents a share, beating market expectations of 22 cents a share.
Farmington Hills, Michigan-based Ramco-Gershenson posted quarterly FFO of $12.3 million, or 53 cents a share, above Wall Street estimates of 45 cents a share.
It, however, cut its full-year FFO outlook by 4 cents to a range of $1.76 and $1.82 a share, citing an increased share offering.
Analysts on average were expecting the company to report FFO of $1.82 a share for the year.
HIGHER RENTAL RATES
During the quarter, Ramco-Gershenson renewed 41 non-anchor leases at an average base rent of $14.76 per square foot, an increase of 6 percent over prior rental rates.
Acadia Realty realized an average rent increase of 11.2 percent in its core portfolio on new and renewal leases.
The soft economic environment has had a severe impact on leasing activity, with U.S. REITs facing declining property fundamentals and weakening liquidity profiles.
Shares of Acadia closed at $16.04 Tuesday on the New York Stock Exchange, while Ramco-Gershenson shares closed at $8.21. (Reporting by Biswarup Gooptu in Bangalore; Editing by Gopakumar Warrier)
