Monday, Post Properties, Inc. (PPS) reported increased funds from operations for the first quarter despite a lower profit, from realization of gains related to loans and interest rate swap, and change in previous hurricane casualty loss estimates.
The Atlanta-based company reported funds from operations, or FFO, of $17 million or $0.38 per share for the first quarter, compared to $13.9 million or $0.31 per share a year ago. On average, eleven analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter.
FFO for the first quarter included net gains of $2.2 million or $0.05 per share related to early extinguishment of indebtedness, mark-to-market of an interest rate swap, and and income of $0.4 million from change in previous hurricane casualty loss estimates. FFO for the first quarter of 2008 included a charge of $6.1 million or $0.14 per share related to the company's sale process.
The company recorded a depreciation of $17.1 million on wholly-owned real estate assets for the first quarter, compared to $15.7 million in the same quarter in 2008.
Net income available to common shareholders for the first quarter was $0.4 million, compared to $0.8 million in the prior year period. On a per share basis, net income available to common shareholders was $0.01, compared to $0.02 last year.
Revenues from continuing operations declined to $69.18 million from $69.71 million in the comparable quarter last year. Six analysts had a consensus revenue estimate of $66.33 million for the quarter.
Average economic occupancy at the company's 41 mature, or same store, communities, containing 14,921 apartment units, decreased to 93.7% from 94.1% in the prior year quarter.
In the second quarter of 2009, the company will recognize a gain of $24.7 million from the sale of its Post Dunwoody apartment community in Atlanta, Georgia.
PPS closed Monday's regular trading at $13.11, up $1.28 or 10.82%, on a volume of 2.12 million shares on the NYSE. In after hours, the stock is gaining $0.16 or 1.22%, at $13.27.
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