For the first quarter of 2013, the Company estimates FFO per share to range from $0.54 to $0.58. The difference between the Company’s fourth quarter 2012 FFO of $0.61 per share and the midpoint of the first quarter 2013 guidance range of $0.56 is primarily due to: (1) loss of NOI from San Diego communities sold in the fourth quarter; (2) a sequential increase in both general and administrative expenses and operating expenses in Q1 2013; and (3) the potential loss of NOI from community disposition activity.
The Company’s 2013 financial outlook is based on a number of assumptions and estimates, which are outlined in Attachment B to this release. The primary assumptions and estimates include:
- An increase in same-store revenue in a range of 3.50% to 4.75%;
- An increase in same-store expenses in a range of 3.00% to 3.75%; and
- An increase in same-store NOI in a range of 3.40% to 5.55%.
Projected Investment Activity
- Development advances are estimated to range from $190 to $225 million; capitalized interest is estimated to range from $22.0 to $23.5 million.
- Proceeds from property dispositions are expected to be the primary source of capital. The Company currently anticipates that proceeds from community / land sales proceeds will total $150 to $250 million in 2013. At this time, the Company does not expect to call for redemption its outstanding Series D preferred shares during 2013.
- Core FFO guidance does not include any non-routine income or expense items (including gains or losses associated with the sale of land).