Same Community Occupancy 95.8%
Same Community NOI Up 6.9% for the Quarter
Company Reaffirms Full-Year Guidance
CLEVELAND, Oct. 27 /PRNewswire-FirstCall/ -- Associated Estates Realty
Corporation (NYSE: AEC) (Nasdaq: AEC) today reported a net loss available to
common shareholders of $4.2 million or $0.26 per common share (basic and
diluted), for the third quarter ended September 30, 2008, compared with a net
loss available to common shareholders of $4.0 million or $0.24 per common
share (basic and diluted), for the third quarter ended September 30, 2007.
Funds from operations (FFO) for the quarter were $0.31 per common share
(basic and diluted), compared with $0.29 per common share (basic and diluted),
for the third quarter ended September 30, 2007, a 6.9 percent increase.
A reconciliation of net (loss) income applicable to common shares to FFO
is included in the table at the end of this press release and in the Company's
supplemental financial information to be furnished with this earnings release
to the Securities and Exchange Commission on Form 8-K.
Revenue for the quarter was $35.3 million compared with $34.5 million for
the third quarter of 2007, a 2.3 percent increase.
Q3 Same Community Portfolio Results
Net operating income (NOI) from the Company's same community portfolio
increased 6.9 percent as a result of revenue increasing 3.3 percent, and
property operating expenses decreasing 1.0 percent, compared with the third
quarter of 2007. Physical occupancy remains constant at 95.8 percent compared
to the end of the third quarter of 2007. For the third quarter, the average
net rent collected per unit for the same community properties increased 3.1
percent to $864 per month. Net rent collected per unit for the Company's
same community Midwest portfolio grew 5.1 percent to $789, while net rent
collected per unit for the Company's same community properties in the
Mid-Atlantic/Southeast markets decreased 0.1 percent to $1,020.
Additional quarterly financial information, including performance by
region for the Company's portfolio, is included in the Company's supplemental
fact booklet, which is available on the 'Investors' section of the Company's
web site at www.aecrealty.com, or by clicking on the following link:
http://ir.aecrealty.com/results.cfm.
Year-to-Date Performance
For the nine months ended September 30, 2008, net income applicable to
common shares was $31.8 million or $1.96 per share (basic and diluted)
compared to net income applicable to common shares of $4.0 million or $0.23
per share (basic and diluted) for the period ended September 30, 2007. The
results for the nine month period ended September 30, 2008 and September 30,
2007 include gains from property sales of $45.2 million and $17.0 million, or
$2.79 per share and $1.00 per share, respectively.
Funds from operations for the first nine months ended September 30, 2008
were $0.87 per share and include defeasance and/or prepayment costs of $2.0
million, or approximately $0.12 per share associated with the repayment of
$11.0 million in debt. Excluding these costs, FFO as adjusted for the period
ended September 30, 2008 was $0.99 per share.
A reconciliation of net (loss) income applicable to common shares to FFO,
and to FFO as adjusted, is included in the table at the end of this press
release and in the Company's supplemental financial information to be
furnished with this earnings release to the Securities and Exchange Commission
on Form 8-K.
Year-to-date, NOI for the same community portfolio was up 6.7 percent.
This increase was driven by a 3.5 percent increase in revenue and a 0.3
percent decrease in property operating expenses.
Debt Maturities
The Company has no debt maturities remaining in 2008, a total of $72.3
million maturing in 2009, and a total of $78.6 million in 2010. A schedule of
debt maturities can be found on page 24 of the supplemental fact book.
The Company's $150 million line of credit had a balance of $14.5 million
on September 30, 2008, and matures in 2011.
2008 Outlook
The Company has reaffirmed its expectations for full-year FFO as adjusted
of $1.28 to $1.32 per share, which excludes defeasance and other prepayment
costs. Assumptions relating to the Company's earnings guidance can be found
on page 25 of the supplemental fact book.
Conference Call
A conference call to discuss the results will be held tomorrow, Tuesday,
October 28, 2008 at 2:00 p.m. (EDT).
