UPDATE 1-Aimco 3rd-quarter FFO falls but beats forecast

* FFO 82 cents/share

* Takes charges for hurricane damage

NEW YORK, Oct 31 (Reuters) - Apartment Investment and Management Co (AIV.N), one of the largest U.S. apartment landlords, reported lower quarterly funds from operations on Friday, due in part to hurricane damage charges.

The company, known as Aimco, reported third-quarter funds from operations (FFO) of $75.9 million, or 82 cents per share, down from $80.2 million, or 74 per share, a year earlier, when the company had more shares outstanding.

Analysts on average had expected 78 cents per share, according to Reuters Estimates. FFO removes the profit-reducing effect of depreciation, a noncash accounting item.

Stripping out one-time items, including a charge of 6 cents per share for hurricane damage, FFO was 90 per share. Last week company executives said results might surpass its updated forecast of 81 cents to 85 cents per share.

For properties the Denver-based company has operated for more than a year, net operating income rose 4.3 percent.

At the end of the quarter, properties operated for more than a year were 95.1 percent occupied, up from 94.7 percent a year earlier.

For the fourth quarter, Aimco said it expects FFO of 71 cents to 81 cents per share before impairment losses and preferred redemption charges. The forecast takes into account additional shares issued for a special dividend.

It lowered its full-year FFO forecast to $3.06 to $3.16 per share from $3.33 to $3.43, including the special dividend and costs associated with hurricane damage. Analysts had expected $3.09 per share.

Aimco shares were up 17 cents, or 1.3 percent, to $13.22 in early trade on the New York Stock Exchange. (Reporting by Ilaina Jonas; editing by John Wallace)