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An increase in rental incomes contributed to second-quarter growth for Home Properties Inc.
The company reported after markets closed Thursday funds from operations of $70.4 million, or $1.11 a share, compared with FFO of $57.6 million, or 96 cents a share, a year ago. That equates to a 16.5 percent increase on a per-share basis.
Earnings per share were 51 cents, compared with 28 cents a year ago. The company said the increase is primarily due to a $4.6 million gain on disposition of property combined with a $13 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 $167.2 million, up from revenue of $154.8 million the prior year.
The second quarter was a good one for Home Properties with continued solid operating performance resulting in record high Funds From Operations per share, which were at the top end of our expectations,” said Edward Pettinella, Home Properties president and CEO, in a statement. “Recent capital markets activities have strengthened the company’s balance sheet, increasing our financial flexibility for the future.”
Based on higher second quarter results than predicted, higher anticipated operating results for the balance of the year, offset by dilution expected from the recent stock offering, Home Properties has maintained the midpoint of its prior FFO per share guidance at $4.38 and narrowed the range of FFO per share guidance to $4.34 to $4.42.
The quarterly breakdown for the balance of 2013 guidance on FFO per share results is as follows: third quarter $1.08 to $1.12; fourth quarter $1.09 to $1.13. Included in the third quarter is 15 cents a share expense from debt extinguishment costs associated with paying off certain variable rate secured debt before maturity.
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