Associated Estates Realty Corporation (AEC) released its second quarter 2009 earnings report and reported strong Funds From Operations (FFO) of $0.33 per share, down marginally from the $0.34 reported in the same quarter last year. Its net income was $0.62 per share. Investors tend to focus on FFO since GAAP net income contains many non-cash items.
Although Associated Estates Realty Corporation is profitable; it is seeing the effects of the recession in its footprint. The company said that its occupancy rate was 95.4% at the end of the second quarter, compared to 96.3% in the same quarter last year. Average net rent was $913 per unit, down 0.2% year over year.
The company had two special charges during the first six months of 2009. The first was a gain on insurance recoveries of $0.03 per share, and the second was a gain on the disposition of property of $0.79 per common share.
Associated Estates Realty Corporation reiterated its FFO expectations for the full year 2009 of $1.17 to $1.23 per share. At its current price, the stock trades at a price to earnings ratio of 5.5, and at a price to book value of 0.95.
Associated Estates Realty Corporation is organized as a real estate investment trust (REIT), and headquartered in Ohio. The company owns or manages 50 multifamily properties, comprising more than 12,000 units in an eight state area.
Let us hear your thoughts below:
