BOCA RATON, FL-In a six-month roller-coaster ride in which locally based Gables Residential announced its pending sale to ING Clarion for about $2.8 billion in a move that will take it private, it reports a year-to-date jump to $55.6 million in net income, up from $20.4 million for the first half of 2004. The ride decelerated during the second quarter with net income of $15.8 million, up just $500,000 from $15.3 million in the same quarter a year ago.
Because of the pending merger, which is expected to close in this quarter, Gables did not hold a conference call, issue an earnings guidance or comment on second-quarter earnings. Total property revenues for the quarter rose 2.9% while property operating and maintenance expenses rose 4.9%, according to its earnings statement.
In terms of investment in acquisitions, its pace during the second quarter nearly matched the opening quarter of the year. In the second quarter it acquired seven multifamily properties with an aggregate of 945 units in three markets for a total of $88 million. That takes total acquisitions this year to nine communities aggregating 1,600 units for a six-month total acquisition cost of $172 million.
It reports that it has $323 million of assets in various stages of development with approximately $167 million of costs remaining to be incurred at June 30, 2005. It says it also has rights for development of an estimated 2,305 units in 10 communities for a total budgeted cost of about $400 million.
Also during the second quarter, it sold its remaining 166 units in Tampa Gables Beach Park to a condo converter for $41.2 million, which provided a net gain of $17.8 million. Year-to-date, it has sold seven assets aggregating 2,045 units in four markets for $168.5 million from which it realized a net gain of $8.3 million.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.