Apartment Investment and Management Co. (AIV), Friday reported a loss for the fourth quarter that narrowed from the previous year, reflecting lower operating expenses that more than offset a decline in revenues. Funds from operations were positive for the quarter, compared to a loss last year. The company also provided earnings guidance for the next quarter and fiscal 2010.
The Denver, Colorado-based real estate investment manager's net loss attributable to shareholders narrowed to $6.73 million or $0.06 per share from $9.90 million or $0.11 per share a year ago.
Funds from operations or FFO stood at $16.1 million or $0.14 per share, compared to a loss of $43.9 million or $0.48 per share in fourth quarter 2008.
Adjusted funds from operations were $15.3 million or $0.13 per share, compared to a loss of $56.0 million or $0.61 per share last year. Results include deductions of $0.13 and $0.29 per share for capital replacement expenditures in fourth quarter 2009 and fourth quarter 2008, respectively.
On average, 17 analysts polled by Thomson Reuters expected earnings per share of $0.36 for the quarter. Analysts' estimate typically excludes one-time items. Total revenues for the fourth quarter declined to $302.81 million from $304.26 million in the comparable period primarily due to lower average rent, down 4.8% or $51 per unit, from $1,055 per unit to $1,004 per unit. Five analysts estimated revenues of $295.70 million for the quarter.
Rental and other property revenues declined to $284.44 million from $287.48 million last year. Property management revenues were $0.98 million, down from $1.60 million a year ago. Asset management and tax credit revenues increased to $17.38 million from $15.18 million in the previous year.
Total operating expenses declined to $277.98 million from $389.48 million in the previous year. Investment management expenses declined to $3.06 million from $6.74 million a year ago. General and administrative expenses declined to $15.97 million from $23.40 million last year. Restructuring costs were $8.66 million, down from $22.80 million in the comparable quarter last year.
In the fourth quarter of the previous year, the company recorded a provision for impairment losses on real estate development assets of $91.14 million.
Same Store conventional property net operating income declined 6.3% from last year. Same Store conventional revenue declined 3.2% and expenses increased 2.2%. Fourth quarter 2009 Same Store conventional net operating income was flat when compared to third quarter 2009. Average daily occupancy for the quarter increased 0.7% to 95.4% from last year.
For the fiscal 2009, net loss was $114.84 million or $1.00 per share, compared to net income of $351.31 million or $3.96 per share in the previous year. Adjusted FFO was $0.99 per share, compared to $1.05 per share last year. Total revenues for the year declined to $1.19 billion from $1.24 billion a year ago.
Looking ahead to the first quarter of 2010, loss per share is expected in the range of $0.61 to $0.57 and FFO per share is expected to range from $0.26 to $0.30. Eleven analysts anticipate earnings per share of $0.32 for the first quarter.
Full year 2010 loss per share is expected in the range of $2.22 to $2.11 and FFO is expected to range between $1.25 and $1.35 per share. Seventeen analysts estimate earnings per share of $1.26 for 2010.
AIV is currently trading at $15.52, up 0.26 or 1.70%, on a volume of 0.99 million on the NYSE.
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