Rent growth and high occupancy rates contributed to first-quarter growth for Home Properties Inc.
The company reported after markets closed Thursday funds from operations of $66 million, or $1.05 a share, compared with FFO of $58.4 million, or 98 cents a share, a year ago. That equates to a 7.5 percent increase on a per-share basis.
Earnings per share were 99 cents, compared with 31 cents a year ago. The company said the increase is primarily due to a $40.4 million gain on disposition of property combined with a $5.6 million increase in income from continuing operations from both the properties owned throughout 2012 and 2013 and those acquired, developed, or redeveloped subsequent to Jan. 1, 2012.
Revenue totaled $167 million, up from revenue of $153 million the prior year.
Analysts polled by Thomson Reuters expected Home Properties to report earnings per share of 28 cents on sales of $169 million.
"Positive rent growth and high occupancy contributed to a solid increase in net operating income in the first quarter, supporting our view that 2013 will be another good year for Home Properties," said Edward Pettinella, Home Properties president and CEO, in a statement. "The business environment for home and the multifamily sector in 2013 remains favorable, although we do not expect the record level of earnings growth we experienced in 2012, which was a truly great year."
Based on the first quarter results as compared to expectations, the company has increased the midpoint of its prior guidance by two cents to $4.38 and the range of FFO per share to $4.32 to $4.44. The guidance range of both FFO and operating FFO per share results for the second quarter of 2013 is $1.07 to $1.11.
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