Apartment Investment Swings To 2Q Loss As Occupancy Falls

   DOW JONES NEWSWIRES 
 

Apartment Investment & Management Co. (AIV), a real-estate investment trust, moved to a second-quarter loss on falling occupancy rates and increased costs.

Rising unemployment has increased the pressure on multi-family dwellings. Most developers have halted new projects. Aimco, which owns and operates some 155,000 apartment units, is focusing on retaining residents and controlling costs.

The highly leveraged company reported a loss of $18.4 million, or 26 cents a share, compared with prior-year earnings of $256 million, or $1.94 a share. The results included 15 cents and $2.30 a share in income from discontinued operations.

Funds from operations, an important measure of REIT profitability, fell to 34 cents from 59 cents. The company's May estimate was for 37 cents to 43 cents, which was below analysts' estimates at the time.

Revenue decreased 6.1% to $334.8 million, while same-store revenue fell 2.3%.

Analysts polled by Thomson Reuters most recently were looking for a loss of 28 cents and revenue of $322 million.

Average rents fell 1.3% and occupancy fell to 92.8% from 94.9% a year earlier and 93.5% in the prior quarter.

Aimco, which narrowed its FFO projection for the year, gave a third-quarter target of 36 cents to 42 cents, including items. Analysts' average estimate, which typically exclude certain items, was 34 cents.

Shares closed at $9.16 on Thursday and didn't trade premarket. The stock has lost roughly 80% of its value in the past 10 months, though it has more than doubled from an all-time low in March.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]