April 30 Apartment owner Equity Residential
said a first-quarter key earnings measure fell 56
percent chiefly on costs related to its share of the acquisition
of former rival Archstone.
Equity Residential said on Tuesday that first-quarter funds
from operations (FFO) fell to $79.1 million, or 22 cents a
share, from $188.3 million, or 60 cents a share, in the
Excluding more than $136 million of costs related to the
Archstone acquisition, the company reported FFO of $226.2
million, or 64 cents a share, up from $191.9 million, or 61
cents per share, in the year-earlier quarter.
The average of analysts' forecasts was 63 cents per share,
excluding the items, according to Thomson Reuters I/B/E/S.
Funds from operations is a real estate investment
trust(REIT) measure that usually removes losses and gains from
property sales and eliminates the effect of depreciation on
Equity Residential, whose chairman and founder is real
estate mogul Sam Zell, closed during the quarter on its 60
percent share of the $6.5 billion acquisition of Archstone from
Lehman Brothers Holding Co. Including the assumption of debt,
the acquisition was valued at about $16 billion, of which Equity
Residential's portion was $9 billion.
Revenue for properties the company has operated for at least
a year grew 5.1 percent in the quarter. Net operating income,
which reflects how well the properties are being managed, rose
For 2013, Equity Residential maintained its forecast for the
year for FFO, excluding nonrecurring items, in the range of
$2.80 to $2.90 per share. Analysts see $2.84 a share, according
to Thomson Reuters I/B/E/S.
The Chicago-based company sees second-quarter FFO, excluding
items, in the range of 67 cents to 71 cents per share, while
analysts forecast 71 cents per share.
Equity Residential reported results after the close of
trading on Tuesday. Its shares rose 1.5 percent, or 85 cents, to
$58.06 during the session.