AMB Property Corp. (AMB), said Wednesday it made a profit for the first-quarter from a loss last year, due mainly to a gain from sale of real estate interests. As well, the company's adjusted funds from operations - a true measure of real estate trusts' performance - topped Street analysts' estimates.
Looking ahead, AMB Property exuded optimism for future growth and reiterated its earnings outlook for fiscal year 2011.
AMB Property, which develops and operates industrial properties, reported first quarter net income to common shares of $7.8 million or $0.05 per share. This compares to a loss of $4.4 million or $0.03 per share in the year-ago quarter.
Results for the quarter include gains from sale of real estate interests totaling $14.5 million.
Funds from operations, or FFO, for the quarter was $53.6 million, compared to $44.8 million in the prior year.
FFO portrays a REIT firm's actual financial position as it adds up depreciation and other costs to earnings while deducting one-time gains.
Adjusting for restructuring charges and merger related expenses, adjusted FFO for the quarter was $57.2 million or $0.33 per share, compared to $47.8 million or $0.31 per share a year before.
On average, 14 analysts polled by Thomson Reuters expected earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude special items.
Adjusting for development profits, core FFO for the quarter was $56 million or $0.32 per share, compared with $44.5 million or $0.29 per share last year.
Commenting on the results, Chief Executive Officer Hamid Moghadam believes the global economy is rebounding and expects U.S. inventory growth to accelerate this year.
"With emerging markets already ahead of the curve, we believe a broader improvement of operating fundamentals will lead to an increase in demand for logistics space globally," Moghadam added.
The San Francisco, California-based company posted revenues of $165.76 million, up from $154 million in the same quarter of last year. This included rental revenues of $158 million, which is higher than the $146.6 million reported in the previous year. Wall Street analysts expected revenues of $157.41 million for the quarter.
As of March 31, 2011, AMB said its operating portfolio was 92.8 percent occupied. During the quarter, the company had an average occupancy rate of 92.4 percent, leasing out 8.9 million square feet of its operating portfolio.
Looking ahead to fiscal 2011, the company said it continues to expect net income of $0.04 to $0.14 per share, adjusted FFO of $1.31 to $1.41 per share, and adjusted core FFO of $1.30 to $1.40 per share.
Street analysts currently anticipate FFO of $1.36 per share for the year.
AMB is trading at $35.75, down $0.37 or 1.02%, on a volume of 1.2 million shares on the NYSE.
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