Growth in the multi-family real estate sector helped boost third-quarter financial results for Home Properties Inc.
After markets closed Thursday, the Rochester firm reported funds from operations of $67.3 million, or $1.09 a share, versus $46.4 million, or 87 cents a share, last year. FFO is the primary metric used by real estate investment trusts such as Home Properties.
The FFO was 4 cents above the midpoint of the guidance range provided by management and the analysts' mean estimate, as reported by Thomson Reuters.
Earnings per share were 71 cents, compared with 20 cents last year. The increase was due to a $19.7 million gain on disposition of property combined with a $13.5 million increase in income from continuing operations from both the properties owned throughout 2011 and 2012 and those acquired, developed, or redeveloped subsequent to Jan. 1, 2011.
"Increased rent growth, continued high occupancy, favorable expense control and strong results from recent acquisitions and new construction have contributed to excellent quarterly results,” said Edward Pettinella, Home Properties president and CEO, in a statement.
Based on higher third quarter results than expected and higher results anticipated for the balance of the year, the company has increased the midpoint of its prior FFO guidance by 7 cents to $4.07 and the range of FFO per share to $4.05 to $4.09, from $3.96 to $4.04.
The guidance range reflects management's current assessment of economic and market conditions, including a net one-half cent charge from the effect of Hurricane Sandy.
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