The REIT with multifamily apartment communities in the Southeast, Southwest, Midwest and Rocky Mountain regions reports first-quarter funds from operations decreased 3.2% to $0.61 per share, reflecting a slowdown in development activity and a partial write-off of AMLI Residential's investment in Broadband Residential. The REIT will still pay a quarterly dividend of $0.47 per share May 22 for shareholders of record as of Friday.

AMLI Residential has an investment in five developments in the western suburbs: the 600-unit AMLI at Danada in Wheaton, the 488-unit AMLI at Willowbrook in Willowbrook, the 464-unit Oakhurst North in Aurora, the 400-unit AMLI at St. Charles in St. Charles and the 272-unit AMLI at Fox Valley in Aurora. It also is developing 520-unit AMLI at Seven Bridges in Woodridge.

Overall, AMLI Residential's vacancy for its suburban Chicago holdings, which also include three properties in the northwest suburbs and a new acquisition in far north suburban Gurnee, is 4.3%, in line with the rest of the market and a decrease from a year ago. However, vacancy was 11.7% in St. Charles, where rents average $1,148 per month, and 7.2% at Oakhurst North.

"Chicago had another very, very strong quarter," says executive vice president Robert S. Aisner. "The market supply is up somewhat in the western suburbs but we still believe Chicago will produce the numbers we projected for the year. We feel good about how it performed in the first quarter."

Another factor the REIT is watching is its exposure to corporate housing, which is miniscule nationally with the exception in the Chicago market. "Chicago is a very strong corporate market and always has been," Aisner says. "We have 10% of our units with corporate providers, and six properties have exposure of more than 5%. It's something we monitor month to month."

Adds President and Co-CEO Allan J. Sweet, "I am concerned, especially in Chicago, that our corporate apartment presence here would be adversely impacted if those providers themselves begin to have problems, as well as their tenants. But right now, it's not a problem, and hopefully won't be a problem."