United Dominion Hits Target

Funds from operations rise.
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United Dominion Realty Trust's

(UDR) - Get Report

first-quarter funds from operations rose 6.1% from a year ago, reflecting higher rental income.

The company posted funds from operations of $61.5 million, or 42 cents a share, in line with its previous forecast and up from $57.9 million, or 39 cents a share, a year ago. Analysts polled by Thomson First Call expected funds from operations of 41 cents a share.

Rental income rose 11.5% to $176.8 million, lower than the consensus estimate of $178.7 million.

The company earned a profit of $12 million, or 6 cents a share, in the quarter, compared with $14.94 million, or 8 cents a share, a year ago.

United Dominion has forecast funds from operations of 42 cents to 44 cents a share for the second quarter and maintained its outlook of $1.63 to $1.73 a share for the year. Analysts estimate funds from operations of 42 cents for the quarter and $1.69 for the year.

United Dominion said it recorded total income per occupied home of $852 a month, the highest level in the company's history. Same community occupancy, a figure relating to multifamily communities owned and stabilized for at least one year, rose to 94.8% for the quarter, up from 94.2% a year ago.

"We delivered robust same community operating performance in the first quarter; achieving 6.3% revenue growth and 6.6% net operating income growth compared to last year. These are our strongest results in over five years," the company said. "Pricing power is clearly on our side as demonstrated by our 5.6% increase in total income per home and 26% reduction in concessions."

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