Thursday, real estate investment trust Essex Property Trust, Inc. (ESS) said that its fourth quarter funds from operations declined and profit for the quarter plunged. The company also provided guidance for the fiscal 2010.
Essex posted a decrease in fourth quarter FFO of $35.8 million or $1.16 per share from $43.6 million or $1.52 per share in the prior year quarter. Excluding non-recurring items, FFO totaled $37.3 million or $1.21 per share for the quarter, down from $40.8 million or $1.42 per share in the same quarter last year.
Fourth quarter, net income available to common stockholders plunged to $6.8 million or $0.24 per share from $18 million or $0.68 per share in the year-ago period.
Same property average revenue fell 6.5% and operating income decreased 11.3% from the year-ago period.
On average, 21 analysts polled by Thomson Reuters expected the company to report profit $1.18 per share on revenue of $98.14 million for the first quarter. Analysts' estimates typically exclude one-time items.
Net operating expense of same property averaged 3.5%, a decline from the prior year quarter.
During the fourth quarter, the company sold Maple Leaf, a 48-unit community located in Seattle, Washington for $6.4 million and in December it acquired DuPont Lofts, a 115-unit condominium development project in Irvine, California for $27.0 million.
Essex also acquired Regency at Encino, a 75-unit community located in Encino, California for $16.0 million during the quarter.
For the full year, the company's FFO rose 11.8% to $200.4 million or $6.74 per share from $167.5 million or $6.02 per share last year. Net income available to common stockholders surged to $82.2 million or $2.91 per share from $52.9 million or $2.09 per share in the prior year. Analysts expected earnings of $6.77 per share for the full year.
Looking forward to full year 2010, the company expects FFO per share to range from $4.60 - $4.90 and earnings per share to range from $0.80 - $1.10. The midpoint of the company's 2010 total same-property portfolio revenues guidance is forecasted to be a decline of 5.5% compared to actual 2009 results.
Analysts currently expect the company to earn $4.67 per share on revenue of $393.37 million for the fiscal 2010.
In 2010, Essex's acquisition plan targets the purchase of up to $300 million of real estate, to be financed from the dispositions of up to $100 million in real estate, joint venture capital, cash and marketable securities, and a combination of equity and debt.
ESS closed Thursday's regular trading session at $77.66, down $2.36 or 2.95% on a volume of 0.50 million shares on the NYSE. In the after hours the shares rose 0.74% or $0.58, trading at $78.23.
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