Archstone-Smith Profits Drop

Archstone-Smith's(ASN Quote) third-quarter profits fell from a year ago as the luxury apartment owner recorded higher operating expenses across its national portfolio, though results still beat analyst estimates.

The real estate investment trust reported funds from operations, or FFO, of 55 cents a share, down from 65 cents a year ago, as the company sold several properties. Analysts expected FFO of 53 cents a share, according to Thomson First Call. Funds from operations is a common REIT performance metric that adds back depreciation and amortization charges to net income.

Same-store net operating income grew 5.9% in the quarter. However, a 10.4% increase in same-store expenses dampened the 7.3% revenue growth. Higher turnover costs, personnel expenses, insurance increases and a one-time ground lease payment adjustment boosted expenses. ...