REIT Parkway Properties Posts Higher 1Q Results

ALEX VEIGA

Real estate investment trust Parkway Properties Inc. said Wednesday its first-quarter funds from operations improved by 10.5 percent as an increase in average rents helped drive revenue higher for the office space owner.

For the quarter ended March 31, funds from operations, or FFO, rose to $15.9 million, or $1.05 a share, from $14.3 million, or 95 cents a share, in the prior-year quarter.

FFO, which adds items such as amortization and depreciation back to net income, is considered a key measure of REIT strength.

Revenue climbed to about 8 percent to $67.8 million.

Analysts surveyed by Thomson Reuters expected FFO of 92 cents a share for the quarter and revenue of $64.7 million.

The Jackson, Miss.-based company's net loss available to common stockholders narrowed to about $1.9 million, or 13 cents a share, from a loss of about $3.8 million, or 25 cents a share, in the prior-year period.

Management said it is making progress cutting costs and noted the company has no remaining debt maturities this year and enough room in its line of credit to cover its 2010 debt maturities.