Considine: Q1 results came in ahead of plan.

DENVER—Shares of Apartment Investment and Management Co. were up late Friday morning after the multifamily REIT’s first-quarter pro forma funds from operations beat analysts’ estimates. Pro forma FFO for the three months that ended March 31 was 50 cents per share, at the upper end of AIV’s guidance; Zacks Investment Research reported a consensus estimate of 49 cents per share. The REIT said its pro forma FFO rose 4% year over year, while adjusted FFO saw a 13% increase from 12 months ago.

Terry Considine, AIV’s chairman and CEO, said Thursday that Q1′s operating results were “ahead of plan, notwithstanding the severe winter weather and its related costs.” The company is increasing its full-year pro forma FFO and AFFO guidance as a result.

Average monthly revenue per apartment unit increased 9.9% Y-O-Y to $1,505, thanks both to rent growth and the sale of underperforming properties. Considine cited an ongoing redevelopment program that’s expected to add $1.50 of NAV per share when completed.

Q1 saw AIV spend $48.4 million on redevelopment efforts at six of its properties. All told, the REIT is forecasting a net investment of approximately $670 million in redevelopment projects, including those now under way and those that were completed during the past 12 months. AIV is expecting a NOI yield of 5.5% on the redevelopment program.

Analysts have taken note of the REIT’s strong quarterly performance. Barclays late last month upgraded AIV stock from an underweight rating to an equal weight rating, ahead of the REIT’s Q1 report. Considine noted Thursday that Standard & Poor’s has upgraded its rating of the AIV balance sheet.