On Aug. 13, AIMCO, one of the nation's largest apartment REITS, projected earnings per share of four cents to eight cents per share and FFO of 86 to 90 cents per share. The FFO is considered the best indicator of the how a REIT is performing.
The primary factors contributing to lower than forecast third quarter FFO per share, the company says is that fee income from AIMCO Capital is $3.4 million, or three cents per share, less than forecast.
And although "Same Store" revenue is expected to have increased by $2 million, or two cents per share, compared with the second quarter, "Same Store" portfolio Net Operating Income, or NOI, is expected to decline by $3 million, or three center per share, due to higher expenses.
The higher than forecast EPS is due primarily to a gain on real estate dispositions of $22 million, or approximately 24 cents per share.
"In the current competitive environment, AIMCO property management focused successfully on increasing occupancy and Net Rental Income," says Terry Considine, AIMCO's chairman and CEO. "Third quarter occupancy is up 40 basis points and Net Rental Income is up $1 million compared with the second quarter 2003. This required expenditures greater than forecast for marketing and turnover expenses, as well as increased spending to make AIMCO properties as attractive as possible for current and future residents."
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