Developers Diversified Realty 1Q FFO Improves

CLEVELAND (AP) — Developers Diversified Realty Corp., a shopping center developer, said its first-quarter funds from operations improved mostly on a gain related to a notes repurchase.

The real estate investment trust said funds from operations available to common shareholders increased to $140 million, or $1.08 per share, compared with $96.3 million, or 80 cents per share, a year ago.

Excluding impairment charges, a gain from the notes buyback and other items, funds from operations were $85 million, or 66 cents per share.

Analysts polled by Thomson Reuters expected funds from operations, or FFO, of 64 cents per share.

FFO, which adds items such as amortization and depreciation back to net income, is considered a key measure of REIT strength.

Earnings available to common shareholders more than doubled to $76.8 million, or 59 cents per share, compared with $29.6 million, or 25 cents per share, in the prior-year period.

Revenue dropped 7 percent to $219.8 million from $236.1 million for the period ended March 31.

In premarket trading, Developers Diversified Realty shares gained 20 percent, or 72 cents, to $4.22.