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AIMCO 1Q FFO Down, Slashes Dividend By 60 Pct

The Associated Press

DENVER (AP) — Apartment Investment and Management Co. said Friday that its first-quarter funds from operations declined partly due to lower occupancy. The apartment operator slashed its quarterly dividend by 60 percent.

Its funds from operations fell to $51.9 million, or 45 cents per share, compared with $67.3 million, or 51 cents per share. Funds from operations, also known as FFO, was 42 cents per share without real estate impairment recoveries.

Excluding capital replacement expenditures, FFO dropped to $35 million, or 30 cents per share, from $46.7 million, or 36 cents per share.

The company previously forecast first-quarter FFO in a range of 30 cents to 36 cents per share, excluding charges.

Funds from operations, a widely used gauge of real estate operating performance, adds depreciation and amortization expenses, as well as other non-operating items, to net income.

Analysts polled by Thomson Reuters predicted FFO of 34 cents per share.

Results were hindered by a drop in occupancy, which fell to 93.5 percent from 94.8 percent.

The real estate investment trust, known as Aimco, also cut its quarterly dividend to 10 cents from 25 cents. The dividend is payable on May 29 to shareholders of record on May 15.

Aimco's first-quarter loss attributable to common stockholders narrowed to $37.7 million, or 33 cents per share, compared with a loss of $38.9 million, or 30 cents per share, a year earlier.

Loss from continuing operations was $36.3 million, or 33 cents per share.

For the period ended March 31, revenue rose to $349.3 million from $347.8 million as rental and other property revenues improved.

Aimco maintained its forecast for full-year FFO of $1.65 to $1.95 per share. It expects second-quarter FFO of 37 cents to 43 cents per share, prior to operating real estate impairments.

Analysts forecast 2009 FFO of $1.65 per share and second-quarter FFO of 44 cents per share.

Shares of Apartment Investment and Management shed 9 cents to $7.21 in afternoon trading.