Shares of Home Properties Inc. were down less than 1 percent the day after it reported an increase in second-quarter funds from operations, due largely to net operating income growth.
Its shares (NYSE: HME) were trading midday at $65.30, down slightly from $65.44 at Thursday’s close.
After markets closed Thursday, the Rochester firm reported FFO of $57.6 million, or 96 cents a share, versus $44.6 million, or 87 cents a share, for the same period last year. FFO is the primary metric used by real estate investment trusts such as Home Properties.
Second-quarter FFO of 96 cents a share was a penny above the midpoint of the guidance range provided by management and the analysts' mean estimate, as reported by Thomson Reuters.
Earnings per share were 28 cents, compared with 20 cents, the prior year. The increase was primarily due to a $6.2 million increase in income from operations from both the properties owned throughout 2011 and 2012 and those acquired, developed, or redeveloped subsequent to Jan. 1, 2011, the company reported.
"Home Properties, like the entire multifamily sector, is currently enjoying the positive fundamentals in our business,” said Edward Pettinella, president and CEO, in a statement.
Based on its performance in the first half of 2012 and the favorable operating environment, the company has increased its expectations for FFO results for the rest of the year. Home Properties has increased the midpoint of its prior FFO guidance by 7 cents to $4 and the range of FFO per share to $3.96 to $4.04 from $3.87 to $3.99.
(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.
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