Home Properties Inc. reported a drop in third-quarter earnings, but an increase in funds from operations.
The company reported after markets closed Thursday funds from operations of $73.1 million, or $1.09 a share, compared to $67.3 million, or $1.09 a share, last year. The FFO increase of $5.8 million was driven by stronger operating results and lower general and administrative costs, offset by the dilutive impact of the 4.4 million public share offering on July 12.
Earnings per share were 44 cents, compared with 71 cents last year.
The decrease in earnings per share was primarily attributable to a $19.7 million decrease in gain on disposition of two properties sold in the third quarter of 2012, partially offset by a $7.2 million increase in income from continuing operations from both the properties owned throughout 2012 and 2013 and those acquired, developed or redeveloped subsequent to Jan. 1, 2012, the company said.
Revenue was $166.8 million, up from $161.8 million last year.
“In the third quarter, Home Properties made tremendous progress in its multi-year plan to further strengthen the balance sheet and increase future financial flexibility,” said Edward Pettinella, Home Properties president and CEO, in a statement. “During the quarter, the company received net proceeds of $267.6 million from a successful equity offering, which was used to reduce debt, in addition to increasing to $450 million its revolving line of credit and extending the term. Both events significantly enhanced key credit metrics for Home Properties.”
Based on slightly lower third quarter results than projected, the company has decreased from $4.34 to $4.42 the range of its annual FFO per share guidance to $4.34 to $4.38. FFO per share expected for the fourth quarter of 2013 remains unchanged at a range from $1.09 to $1.13.
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