Associated Estates Dallas apartments
Apartment landlord Associated Estates Realty Corp. reported third-quarter financial results Tuesday, after markets closed.
(Associated Estates)
RICHMOND HEIGHTS, Ohio -- Associated Estates Realty Corp. narrowly missed analysts' expectations for the third quarter, based on a report released late Tuesday afternoon.
The apartment landlord, based in Richmond Heights, oversees a portfolio spanning 10 states and 58 properties, including a handful of pending acquisitions and development projects. The largest cluster of apartments - nearly 6,000 across 25 communities - is in the Midwest, but Associated Estates has built a presence in other markets and is tackling new construction in Texas and California.
A few highlights from the company's third-quarter report:
- Funds from operations - the most-watched performance measurement for real estate investment trusts like Associated Estates - were flat at 32 cents per share, when compared with a year before. Analysts were predicting 33 cents per share, so the company fell short by a penny.
- Profits fell to $3.4 million, or 6 cents per share, from $19.9 million, or 40 cents per share, a year before. Chalk up that difference to property sales. Associated Estates didn't sell any real estate during the third quarter but recorded an $18.1 million gain tied to dispositions a year before.
- Average occupancy at the company's apartment buildings slipped slightly, to 95.4 percent, from 95.7 percent a year before. That occupancy rate is based on properties the company has owned for more than a year.
"We continue to focus on our fully funded development pipeline, which is progressing in line with our strategic plan," Jeffrey Friedman, the company's president and chief executive officer, said in a written statement. "Associated Estates is well-positioned in its markets, and apartment fundamentals remain very positive."
The company's shares, listed on the New York Stock Exchange and the Nasdaq, closed trading Tuesday at $19.35, up 0.4 percent or 8 cents.