United Dominion Posts Gains

United Dominion Realty Trust's(UDR Quote) second-quarter funds from operations rose 6.2% from a year ago, helped by higher rents and high occupancy.

The company posted funds from operations of $63.1 million, or 43 cents a share, up from $59.4 million, or 40 cents a share, a year ago. Analysts polled by Thomson First Call expected funds from operations of 42 cents a share.

Rental income rose 10.7% to $174.3 million, lower than the consensus estimate of $181.5 million.

The company's profit after preference dividend was $28.3 million, or 21 cents a share, in the quarter, compared with $48.6 million, or 36 cents a share, a year ago.

The Highlands Ranch, CO.-based company expects funds from operations of 40 cents to 42 cents a share for the third quarter and $1.65 to $1.73 a share for the year. Analysts estimate funds from operations of 42 cents for the quarter and $1.69 for the year.

United Dominion said it recorded total income per occupied home of $878 a month, the highest level in the company's history. Same-store occupancy rose to 94.9% for the quarter, up from 94.5% a year ago.

"We continued to see excellent apartment market fundamentals in the second quarter, producing higher rents and sustained high occupancy, demonstrating the pricing power we have across the vast majority of our markets,'' the company said.