Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2012. All per share results are reported on a fully-diluted basis.
“2012 will be another very good year for Equity Residential,” said David J. Neithercut, Equity Residential’s President and CEO. “Apartment fundamentals are extremely positive and, as expected, we should deliver same store revenue growth for the full year of around 5.5%, which will lead to another very strong year of same store net operating income performance in excess of 7%. Longer term, we expect fundamentals to remain favorable and for continued operating performance above historical levels.”
Second Quarter 2012
FFO (Funds from Operations), as defined by the National Association of Real Estate Investment Trusts (NAREIT), for the second quarter of 2012 was $0.64 per share compared to $0.58 per share in the second quarter of 2011.
For the second quarter of 2012, the company reported Normalized FFO of $0.68 per share compared to $0.60 per share in the same period of 2011. The difference is due primarily to:
- A positive impact of approximately $0.08 per share from total property net operating income (NOI) including $0.07 per share from higher same store NOI and $0.01 per share from higher NOI from properties in lease-up;
- A positive impact of approximately $0.01 per share from net accretion due to the timing and volume of 2011 and 2012 transaction activity; and
- A negative impact of approximately $0.01 per share from higher general and administrative expenses.
Normalized FFO begins with FFO and eliminates certain items that by their nature are not comparable from period to period or that tend to obscure the company’s actual operating performance. A reconciliation and definition of Normalized FFO are provided on pages 24 and 26 of this release and the company has included guidance for Normalized FFO on page 25 of this release.