* FFO C$0.40 per unit vs year-ago C$0.47 per unit
* Analysts expected FFO C$0.40 per unit
TORONTO, Feb 24 (Reuters) - Calloway REIT CWT_u.TO CWT_u.TO reported a drop in fourth-quarter funds from operations (FFO) that was in line with market estimates as higher interest costs offset improved operating results.
Calloway reported FFO, a key measure used by real estate investment trusts, of C$40.1 million ($38.2 million), a decrease of C$4.5 million from a year earlier. This worked out to 40 Canadian cents a unit, compared with 47 Canadian cents a unit a year earlier.
Analysts on average had expected the trust to post FFO of 40 Canadian cents a unit, according to Thomson Reuters I/B/E/S.
Calloway’s property portfolio generated revenue of C$116.2 million in the fourth quarter, a C$6.6 million increase over the same period a year earlier.
The occupancy rate of the shopping center-focused REIT increased to about 99 percent for the three months ended Dec. 31.
$1=$1.05 Canadian Reporting by Jeffrey Hodgson, editing by Leslie Gevirtz