In all, Gables projects economic gains of between $30 million and $35 million from the sale of real estate in 2005. About $100 million of the anticipated 2005 acquisitions were originally expected to close in 2004. Part of the investment strategy involves recycling capital through dispositions of non-core, slower growth assets and the acquisition of assets with better growth potential.

The forecast statement says, "The competitive acquisition environment, including competition from condominium converters, is likely to result in a timing difference between the closing of dispositions and the closing of acquisitions. In addition, continued pressure of initial investment yields from increasing asset prices is likely to cause more short-term earnings dilution than previously anticipated."

The locally based developer, owner and manager of multifamily facilities currently has $301 million in properties under construction. They include Gables Marbella here and Gables Montecito in Palm Beach Gardens. Marbella lease-up will begin in fourth quarter 2005 and lease-up of Montecito is expected to begin in first quarter 2006. Beyond current construction, Gables has land valued at approximately $400 million in its development pipeline, primarily in Texas.

Occupancy at same-store communities, which is those that had been in operation for at least a full year, underperformed during the first half of 2004, prompting Gables to lower asking rents in the year's third quarter. During the first nine months of 2005, the company expects year-over-year occupancy to increase between 1% and 2%. The modest improvement is based on job growth projections and reductions in new supply.