Annaly Capital, Host Hotels and Developers Diversified were among the most highly anticipated real estate investment trust earnings reports this season. Here's how the group fared.
NEW YORK ( TheStreet) -- Real estate investment trusts were a mixed bag this earnings season. Click through the slideshow for a roundup of some of the biggest names in the real estate sector. Annaly Capital Management ( NLY) On May 5, Annaly Capital ( NLY) said it doubled its quarterly earnings year-over-year. The REIT booked net income of $699.9 million, or 92 cents per share, up from $281.1 million, or 50 cents per share, in the year-earlier period. Adjusted for one-time items, Annaly's profit came to $530.6 million, or 70 cents per share, topping expectations for earnings of 59 cents per share. Annaly unloaded $4.2 billion of mortgage-backed securities and agency debentures in the recent quarter, resulting in a realized gain of $27.2 million. It also issued 72.5 million shares of common stock through two separate public offerings, producing aggregate net proceeds of $2.9 billion.
On May 3, MFA Financial ( MFA) announced that it beat expectations by 4 cents with a quarterly profit of 27 cents per share, or $80.8 million. In the year-earlier period the REIT earned 29 cents per share, or $80.6 million. Revenue rose 8.6% year-over-year. MFA Financial is a real estate investment trust that invests in residential Agency and Non-Agency adjustable-rate mortgage-mortgage-backed securities (ARM-MBS). Interest income from MBS issued by a government agency came to $60.2 million in the recent quarter, down from $78.7 million a year earlier. Interest income from MBS issued by a private The company received $60.2 million in interest income from mortgage-backed securities issued by a government agency, compared with $78.7 million a year ago. Interest income from MBS issued by a private party fell to $22.9 million from $29 million in 2010.
On April 28 Host Hotels & Resorts ( HST) reported a narrower quarterly loss. An uptick in business travel, buoyed by the economic recovery-in-progress, helped Host Hotels post the smaller loss. Host booked a quarterly loss of $60 million, or 9 cents per share, from a year-earlier loss of $84 million, or 13 cents per share. Revenue rose 9.7% to $903 million. Host posted funds from operations of 11 cents per share, up from 8 cents per share a year earlier. Funds from operations, or FFO, is a performance figure generally used by REITs to define cash flow from operations and removes the profit-reducing effect depreciation has on earnings. The operator of around 120 luxury and upper upscale hotels owns hotels operated by Starwood Hotels & Resorts ( HOT) and Marriott International ( MAR).
On April 27, Developers Diversified Realty ( DDR) reported funds from operations that beat Wall Street's consensus call, and reaffirmed its 2011 outlook. Higher occupancy helped FFO rise to $63.2 million, or 24 cents per share, last quarter, excluding $25.9 million of one-time items. Developers Diversified said occupancy rates at its shopping centers and strip malls rose to 92.4%, compared with a year-earlier rate of 91.3%. The REIT reaffirmed its full-year outlook for FFO between 90 cents and $1.05 per share. Analysts had been looking for Developers Diversified to earn FFO of 95 cents per share.
On April 26 General Growth Properties ( GGP) announced that it grew its core FFO last quarter as comparable tenant sales improved at its shopping mall properties. General Growth, which emerged from bankruptcy in November, said its mall tenants saw sales rise 7.3% in the recent quarter. First-quarter core FFO came to $220.9 million, or 22 cents per share, compared with year-earlier FFO of $216.3 million, or 67 cents per share, ahead of a secondary offering. Analysts expected General Growth to post FFO of 23 cents per share. General Growth successfully refinanced $1.7 billion on seven mall properties in the recent period. Net operating income on malls owned at least one year rose 1.8% year-over-year to $550.8 million. Canada's Brookfield Asset Management ( BAM) and hedge fund Pershing Square Capital, headed by William Ackman, own around 38% and 14% of General Growth, respectively, having helped the mall owner recapitalize to emerge from bankruptcy last year. General Growth plans to unload around 20 of its 169 shopping mall properties.
On April 20 ProLogis ( PLD) and AMB Property ( AMB), a pair of real estate investment trusts due to merge later this quarter, reported improved quarterly results, boosted by stronger demand for warehouse and distribution space. Industrial real estate interest had grown in recent months as global economies continue to recover, lifting demand for modern storage spaces for a range of goods and products. Occupancies at AMB and ProLogis properties increased in the recent quarter, but rents continued to slide though at a slower rate than previously reported. ProLogis CEO Walter Rakowich commented that while demand has improved, the pace of the rebound eased in the first quarter this year as higher energy costs, concerns over sovereign debt issues, global military actions and the Japan earthquake tempered demand. For the recent quarter, AMB booked funds from operations of $56.1 million, or 32 cents per share, up 25.8% from year-earlier results of $44.6 million, or 29 cents per share. The line item matched analysts' expectations. ProLogis posted quarterly FFO of $74.4 million, or 13 cents per share, up 42.3% from $52.3 million, or 11 cents a share, booked in the year-earlier quarter. Despite the surge, results missed expectations by two cents per share. Both AMB and ProLogis incurred charges in the quarter related to damages at their properties in Japan, a result of the catastrophic earthquake and tsunami that hit the country in early March. AMB booked damages of $2.7 million related to its Japan portfolio, while ProLogis incurred $7 million in damages. -- Written by Miriam Marcus Reimer in New York. >To contact the writer of this article, click here: Miriam Reimer. >To follow the writer on Twitter, go to http://twitter.com/miriamsmarket. >To submit a news tip, send an email to: tips@thestreet.com.
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