Apartment Investment & Management Co. (AIV) swung to a loss
in the third quarter on a drop in both occupancy rates and average
rents, as the apartment manager saw a key profitability metric
fall.
Rising unemployment has increased the pressure on multi-family
dwellings. Most developers have halted new projects. Aimco is
focusing on retaining residents and keeping costs down, but
recently it has seen occupancy rates fall and costs rise.
The real-estate investment trust posted a loss of $27.5 million,
or 35 cents a share, compared with a year-earlier profit of $173.7
million, or $1.35 a share. The results included income from
discontinued operations of 29 cents and 95 cents, respectively.
Revenue decreased 7.3% to $319.3 million while same-store revenue
was down 2.9%.
A survey of analysts by Thomson Reuters projected a 35-cent loss
on revenue of $313 million.
Funds from operations, an important measurement of profitability
for REITs, fell to 25 cents a share from 41 cents. In July, the
company projected 36 cents to 42 cents.
Average rents dropped 3.5% and occupancy fell to 94.8% from 95%
a year ago.
Aimco narrowed its 2009 FFO forecast, projecting 32 cents to 40
cents a share for the fourth quarter.
Shares in Aimco closed Thursday at $13.18 and weren't active
premarket. The stock, which has more than doubled from an all-time
low in March, is up 14% so far this year.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com