"The basis of this upward revision is mainly due to a series ofone-time items recognized in the third quarter," according toPike's report. "In addition, ancillary income remains variable;therefore we remain conservative in these assumptions leaving roomfor potential upside."

Pike points out that while occupancy was flat year over year, asequential improvement of 500 basis points to 92.9% "deservesrecognition." On the other hand, now the real work begins. "We areconcerned the upside associated with easy comps and the realizationof a more normalized operating environment may limit furtherfundamental improvement, especially during the seasonally weakerfourth quarter and first quarter periods," according to Pike.

And although Aimco posted a $0.08 "surprise" to Pike'sthird-quarter estimate, "we believe by removing one-time items,third-quarter results met AIV's expectations due to lower thananticipated interest rates and variable ancillary income, notnecessarily improving fundamentals."