Crescent Exceeds FFO Expectations for Second Quarter

Ft. Worth-based Crescent Real Estate Equities Co. has surpassed its second-quarter expectations by 5-cents per share despite an 11-cent per-share drop from the previous year’s same period. The results stem from the REIT’s strategy of selling properties, repurchasing stock and recycling funds while negotiating for a joint venture partner.

The REIT ended the second quarter with an FFO of 63 cents per share or $82 million in comparison to the 74-cents per share or $104.4 million for the same reporting period last year.

To date, Crescent has repurchased about 12.4 million common shares at an average price of $18.87 per share for a cost of $234 million. The buyback got under way in March, three months after a board approval that set a $500-million cap. In a preferred partnership with GMAC, Crescent has received about $241 million in net proceeds, of which $133 million was used to buy 6.6 million common shares and $101 million applied to the purchase of 5.8 million shares from UBS Warburg.