WRAPUP 1-Diversified REITs post better-than-expected Q3 FFO
* Brandywine, Highwoods beat market views
* Brandywine gives FY10 FFO view below est; ups FY09 FFO
* Highwoods FY09 FFO outlook to meet or beat estimates
Oct 28 (Reuters) - Diversified real estate investment trusts Brandywine Realty Trust (BDN.N) and Highwoods Properties Inc (HIW.N) posted quarterly funds from operations above market estimates, signifying a gradual improvement in the U.S. commercial real estate industry.
However, Randnor, Pennsylvania-based Brandywine forecast fiscal 2010 FFO of $1.23 to $1.34 a share, below analysts' expectations of $1.38 a share.
For 2009, it raised its FFO outlook to $1.82 to $1.85 a share, from its July FFO forecast of $1.75 to $1.80 a share.
It expects 2009 adjusted FFO of $1.85 to $1.88 a share.
Analysts on average were expecting the REIT to post FFO of $1.78 a share for 2009, according to Thomson Reuters I/B/E/S.
Separately, Raleigh, North Carolina-based Highwoods Properties also raised its 2009 FFO outlook to between $2.59 and $2.62 a share. Analysts were expecting annual FFO of $2.59 a share.
For the third quarter ended Sept. 30, Brandywine posted FFO of $58.2 million, or 44 cents a share, topping analysts' expectations of $36 cents a share.
Highwoods Properties posted quarterly FFO of $46.4 million, or 62 cents a share, beating Wall Street FFO view by 2 cents.
FFO is a key performance measure for real estate investment trusts, or REITs, because it excludes the profit-reducing effect of depreciation.
Commercial REITs have recently been propped up by the gradual recovery in the U.S. credit markets.
A majority of the industry is expected to remain in recession through 2011 with an industry wide recovery not expected to begin until 2012.
Shares of Brandywine Realty were down 2 percent at $9.40 in post-market trade Wednesday. They closed at $9.58, while Highwoods Properties shares closed at $27.23 on the New York Stock Exchange. (Reporting by Biswarup Gooptu in Bangalore; Editing by Gopakumar Warrier)
