Participating on today’s call will be Mark Zalatoris, Inland’s President and Chief Executive Officer, Chief Financial Officer Brett Brown, and Scott Carr, President of Property Management.Now I will turn the cal over to Mark. Mark Zalatoris Good afternoon everyone. Thanks for joining us today. On the call today I want to touch on our performance for the quarter and then review the progress we have made on the principal objectives we have laid out for 2010. Scott will follow with additional detail on our portfolio leasing activities and results for the quarter. Then Brett will provide a report on our financial results and an update on balance sheet initiatives. For the quarter, funds from operations was $0.13 per share versus $0.31 per share reported for the first quarter of ‘09. After adjusting for aggregate non-cash impairment charges of $0.09 per share that is related to unconsolidated development joint venture projects, FFO per share for the quarter was $0.22. This result was in line with analyst consensus estimates. With regard to the same store net operating income, there is no question, we are disappointed with the year-over-year decrease reported. That said it’s important to note that the same store NOI in the first quarter of 2009 was the high mark for last year. Going forward same NOI comparison to prior year period should improve. Most importantly our performance trended in a positive direction on a sequential basis. Excluding the impact of two early lease terminations that we initiated, some same-store NOI declined only 1.2% from the prior quarter. On our last call I stated that our primary focus this year is on strengthening our financial position and restoring portfolio occupancy and income. I am pleased to reported that we have made important progress on both fronts. Turning to the balance sheet, we have secured commitments for more than the $300 million requested from our bank group in order to refinance our $155 million line of credit facility and $140 million term loan. We anticipate closing the credit facilities in this quarter.
To date this year we have retired $64 million of consolidated mortgage debt, recently closed on a $20 million secured loan and we are continuing to work on additional financing that will close this year. As we move forward to refinancing and repositioning of outstanding debt or risk profile and overall financial flexibility will continue to improve.Now moving to operations, we continue to work toward increasing portfolio value through strong lease execution overall as well strategic asset repositioning initiatives. During the quarter we more than doubled the amount of square feet leased over both the prior quarter and year-over-year. This momentum of leasing activity reflects in some cases months of negotiations with retailers that are now bearing fruit as market conditions show signs of improvement. We have also made substantial headway with the returning of certain vacancies created by big box retailer bankruptcies. Including leases signed during the quarter, we have released 74% of the vacancy created by the bankruptcies of Vicks, Linens and Things bankruptcy, Circuit City, Bally’s Fitness and Filene’s Basement. Another 17% of that vacancy is at least are under letters of intent. I want to emphasize that all of these deals have been executed with strong credit quality in demand retailers like Nordstrom Rack, Marshalls, and buybuy BABY. This is an important point because as we restore occupancy, we are also strengthening our operating platform, which we believe will drive future income growth. I want to take a moment to outline some of the key long-term benefits we will realize from retenanting with these high quality value oriented retailers. First, credit tenants provide a reliable rental income stream and pay their pro rata share property operating expenses and taxes. Second, in demand retailers drag customer traffic, which in turn drags new tenants to the center. This benefits co-tenant retailers who are then more likely to renew leases and at increased rates. Third best in class retailers enhance the overall complexion of our centers, and finally the higher valuation of scribe to revenue from credit quality tenants increases our portfolio net asset value. Read the rest of this transcript for free on seekingalpha.com