Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2013. All per share results are reported as available to common shares on a diluted basis.
“We are pleased that apartment fundamentals across our markets remain strong and that we will again produce results for the full year in line with our original guidance and well above historical trends,” said David J. Neithercut, Equity Residential’s President and CEO. “We are extremely proud of our property teams across the country for delivering such strong performance while simultaneously integrating 21,000 newly acquired apartment units into our portfolio.”
Second Quarter 2013
FFO (Funds from Operations), as defined by the National Association of Real Estate Investment Trusts (NAREIT), for the second quarter of 2013 was $0.73 per share compared to $0.64 per share in the second quarter of 2012.
For the second quarter of 2013, the company reported Normalized FFO of $0.71 per share compared to $0.68 per share in the same period of 2012. The difference is due primarily to:
- the positive impact of approximately $0.04 per share from higher same store net operating income (NOI);
- the positive impact of approximately $0.27 per share from the stabilized Archstone properties, offset by the negative impact of approximately $0.25 per share from 2012 and 2013 disposition activity and common share issuance in connection with the company’s purchase of Archstone; and
- the negative impact of approximately $0.03 per share from higher interest expense and other items.
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. Merger expenses and prepayment penalties are not included in the company’s Normalized FFO. A reconciliation and definition of Normalized FFO are provided on pages 26 and 29 of this release and the company has included guidance for Normalized FFO on page 27 of this release.