Archstone-Smith Sees Q1 Earnings Rise

The FFO reflects the impact of the company's capital recycling program. Otherwise, FFO was $0.51 per share, compared with $0.47 per share last year.

Same-store revenues decreased 0.9% from the same period of 2003. Same-store operating expenses increased 2.2% and net operating income decreased 2.5% from the first quarter last year.

The greater Washington DC metropolitan area, Southern California and Southeast Florida, which collectively represent 61.4% of the company's portfolio, produced positive same-store revenue growth during the quarter of 1.0%, 2.7% and 2.3%, respectively.

"We are pleased with the relative stability in our same-store results, which underscores the benefit of investing in highly desirable neighborhoods with limited land upon which to build new housing," says R. Scot Sellers, chairman and chief executive officer. "We are also encouraged by the recent positive trends in overall employment growth in the US. If this continues, it should provide very positive momentum to our company's performance."

Archstone-Smith's first-quarter 2004 results include gains from the sale of apartment communities by Ameriton Properties Inc. and other taxable real estate investment trust subsidiaries, which contributed $13.3 million, or $0.06 to the company's first quarter earnings per share and $12.6 million.

In addition, the company's first quarter results include a $10.5-million gain from the sale of previously acquired stock in another apartment company, which contributed $0.47 to its EPS and per-share FFO.

Archstone-Smith also received $5.1 million of insurance recoveries during the first quarter. Of that amount, approximately $1.3 million is reflected in other income as it pertains to legal and professional fees.