A reconciliation of net income/loss available to common shareholders to FFO, and a reconciliation of NOI to income/loss from continuing operations, as well as definitions and statements of purpose are included in the financial tables accompanying this press release.
Thomas H. Lowder, Chairman and Chief Executive Officer, noted, “Our core multifamily operating fundamentals continue to perform well. Solid occupancy and leasing, combined with expense controls, led to our best year-over-year same-property NOI growth rate in our company’s history. The asset recycling transactions we completed in the fourth quarter improved the growth profile of the company. We intend to capitalize on this stronger portfolio, as well as our multifamily development pipeline to create additional value for our shareholders in 2013.”
Highlights for the Fourth Quarter 2012
- Multifamily same-property NOI increased 6.7 percent compared with fourth quarter 2011
- Ended the quarter with multifamily same-property physical occupancy of 95.8 percent
- Multifamily same-property revenue increased 5.3 percent compared with fourth quarter 2011
- Sold four apartment communities totaling 1,380 units for $95.4 million
- Acquired three apartment communities totaling 948 units in separate transactions for $105.3 million
- Sold Colonial Promenade Alabaster retail center for $37.4 million in cash, and the remaining 10 percent interest in a nine-office, 1.7 million square foot portfolio in Huntsville, Alabama for total consideration of $19.4 million
- Subsequent to quarter end, sold our remaining 10 percent ownership interest in Colonial Promenade at Hoover for total consideration of $2.0 million
Multifamily Operating PerformanceMultifamily NOI for the fourth quarter 2012 increased 6.7 percent compared with the fourth quarter 2011 for the 28,943 apartment homes included in the consolidated same-property results. Multifamily same-property revenues increased 5.3 percent and expenses increased 3.3 percent compared with the fourth quarter 2011. The increase in revenues was primarily due to an improvement in renewal lease rates and an 80 basis point increase in financial occupancy as compared to the fourth quarter 2011. The increase in expenses is primarily due to an increase in property taxes, utilities and repairs and maintenance expenses. Same-property physical occupancy as of December 31, 2012, was 95.8 percent, compared with 95.9 percent at December 31, 2011.