Equity Residential (NYSE: EQR) today reported results for the quarter and nine months ended September 30, 2012. All per share results are reported as available to common shares on a diluted basis.
“We continue to experience strong fundamentals across our markets and turned consistent demand into terrific same store revenue growth of 5.8% in the third quarter,” said David J. Neithercut, Equity Residential’s President and CEO. “For the full year, we expect to deliver 5.6% same store revenue growth, slightly ahead of our original plan and a very good result following growth of 5.0% in 2011. Fundamentals should remain favorable in 2013 which should produce same store revenue growth of 4.0% to 5.0%.”
Third Quarter 2012
FFO (Funds from Operations), as defined by the National Association of Real Estate Investment Trusts (NAREIT), for the third quarter of 2012 was $0.92 per share compared to $0.63 per share in the third quarter of 2011. The difference is primarily due to a termination fee of $70 million, or $0.22 per share, that the company received in connection with its pursuit of Archstone, as well as the items discussed below.
For the third quarter of 2012, the company reported Normalized FFO of $0.73 per share compared to $0.62 per share in the same period of 2011. The difference is due primarily to:
- a positive impact of $0.07 per share from higher same store net operating income (NOI) and $0.01 per share from higher NOI from properties in lease up; and
- a positive impact of $0.03 per share from 2011 and 2012 transaction activity and timing.
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.