FFO adjusted for items that affect comparability was $11.5 million, or $0.17 per share, compared to $10.4 million, or $0.15 per share, in the comparable period in 2011. The approximate 13% FFO per share increase was driven primarily by the improvement in revenue due to property portfolio growth and the benefit from a reduction in interest expense.
Net loss to common stockholders for the third quarter of 2012 was $(1.3) million, or $(0.02) per share, compared to net loss of $(14.8) million, or $(0.22) per share, in the comparable period in 2011. 2011 results included $13.4 million of net losses from discontinued operations, reflecting properties that have been disposed of.
New Property Investment:
During the third quarter, the Company entered into a new build-to-suit arrangement to construct a state-of-the-art 311,730 square foot distribution warehouse in Ashland, Virginia outside of Richmond for Vitamin Shoppe Industries, Inc. (NYSE: VSI).The Company entered into a net lease with Vitamin Shoppe for a 15 year term which will commence upon completion of construction. Acquisition of the approximately 43 acre land site along with the commencement of construction occurred during the third quarter. The project is expected to be completed during the second quarter of 2013. When complete, the Company’s total investment is expected to be about $20 million and its average capitalization rate will be approximately 8% over the lease term. The Company also continued to fund construction of a Tulsa, Oklahoma build-to-suit project for Cimarex Energy Co. during the third quarter of 2012. Construction of the 324,000 square foot Class A office building remains on budget and on schedule with delivery of floors to the tenant scheduled to begin later this year, and completion of construction scheduled for the first quarter of 2013. The Company has funded its entire $24 million commitment to the total $55 million project, and the remaining project costs are being funded through a non-recourse construction loan obtained from the Bank of Oklahoma. When complete, the Company’s average capitalization rate will be in excess of 10% over a 12 year lease term.
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