Recurring FFO for the quarter ended June 30, 2013 was $0.49 per share or $61.4 million. For the same quarter last year, Recurring FFO was $0.47 per share or $57.4 million. The increase in Recurring FFO over the prior year was primarily due to increases in net operating income from our existing portfolio, reduced interest expense from favorable debt refinancings and reduced preferred share dividends due to redemptions. These increases were partially offset by the impact of the Company’s disposition program. For the six months, Recurring FFO was $120.3 million or $0.97 per share for 2013 compared to $114.2 million or $0.93 per share for 2012.
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.
On June 5, 2013, the Company completed the redemption of $200 million of its 6.50% Series F Cumulative Redeemable Preferred Shares, leaving $150 million of these Series F shares outstanding. As a result of the transaction, preferred redemption costs totaling $15.9 million were expensed.
Operating ResultsSame Property Net Operating Income ("SPNOI") increased by a strong 5.0% for the quarter primarily due to increased occupancy and a reduction in merchant fallouts. Year-to-date, SPNOI increased 4.4%. Occupancy increased to 94.2% in the second quarter from 93.7% in the prior quarter and by 0.8% from 93.4% in the second quarter of 2012. Occupancy of small shop space increased by 0.4% from the prior quarter and 0.8% from the same quarter of the prior year to 88.6%. The Company produced strong leasing results during the second quarter with 377 new leases and renewals, totaling 1.4 million square feet. These transactions were comprised of 156 new leases and 221 renewals, which represent annualized revenues of $9.3 million and $11.3 million, respectively. The average rental rate increase on new leases signed during the quarter was an exceptional 19.3%.