Home Properties Inc. reported an increase in first-quarter funds from operations due, in part, to increases in rental revenues and occupancy rates.
The Rochester firm reported FFO of $58.4 million, or 98 cents a share, compared with $43.2 million, or 86 cents a share, a year ago. FFO is the primary metric that real estate investment trusts, such as Home Properties, use.
The first-quarter FFO was 6 cents above the midpoint of the guidance range provided by management and 5 cents above the analysts’ mean estimate from Thomson Reuters.
Earnings per share were 31 cents, compared with 19 cents a year ago. The 12 cent increase was due primarily to a $9.4 million increase in income from continuing operations from properties owned throughout 2011 and 2012, as well as those acquired, developed or redeveloped subsequent to Jan. 1, 2011, the company said.
Edward Pettinella, president and CEO, said net operating income growth in the quarter was the highest for any first quarter in the past five years.
"Increases in rental revenues and occupancy exceeded the strong results in both the prior quarter and the first quarter a year ago, reflecting the positive fundamentals in the multifamily business environment as well as our successful property management operations in prime apartment markets," Pettinella said, in a statement.
The company’s stock (NYSE: HME) was trading midday Friday at $62.98, up slightly from Thursday’s close of $62.80. Home Properties reported its results after the market closed on Thursday.
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