Recurring FFO for the quarter ended June 30, 2012 was $0.47 per share or $57.0 million. For the same quarter last year, Recurring FFO was $0.44 per share or $52.5 million. The increase in Recurring FFO over the prior year was primarily due to increases in net operating income from our existing portfolio and reduced interest expense from favorable debt refinancings. For the six months, Recurring FFO was $113.4 million or $0.93 per share for 2012 compared to $103.0 million or $0.85 per share for 2011, a 9.4% increase.
The second quarter 2012 impairment charge of $24.9 million relates to properties being actively marketed for sale including $12.1 million related to properties in industrial joint ventures that the Company anticipates selling before year-end 2012 as part of its strategic disposition of its industrial portfolio. The remainder of the impairment relates to either wholly-owned “secondary” assets or retail assets held in joint ventures where the partners have elected to dispose of specific properties.
A reconciliation between net income attributable to common shareholders to Reported FFO and Recurring FFO is listed on page 5 of the Company’s supplemental package and additional details regarding the financial statement presentation of the impairments are included on page 43.
Operating ResultsOccupancy of our retail portfolio increased to 93.7% in the second quarter from 93.4% in the prior quarter and by a very strong 1.3% from 92.4% in the second quarter of 2011. Occupancy of small shop space increased by an impressive 1.0% from the prior quarter and 1.5% from the same quarter of the prior year. Same Property Net Operating Income ("SPNOI") for retail properties increased 2.9% primarily due to continued strength in both renewals and new leases and a reduction in merchant fallouts. Year-to-date, SPNOI increased 3.8%. The Company produced strong leasing results during the second quarter with 380 new retail leases and renewals, totaling over one million square feet. These transactions were comprised of 163 new leases and 217 renewals, which represent annualized revenues of $7.2 million and $10.0 million, respectively. The average rental rate increase on new retail leases signed during the quarter was a solid 5.2%.