DOW JONES NEWSWIRES 
 

Apartment Investment and Management Co.'s (AIV) first-quarter net loss narrowed slightly, with the results topping expectations and the real-estate investment trust slashing its quarterly dividend another 60%.

The company also projected second-quarter funds from operations, a key measure of profitability for REITs, below analysts' expectations, putting its estimate at 37 cents to 43 cents a share. Analysts polled by Thomson Reuters expected 44 cents. American Investment reiterated its full-year FFO view.

REITs have been slammed amid the global recession and housing slump. A drop in property values, rising unemployment and tight credit markets have damped demand for property and made it difficult for would-be buyers to get financing for a purchase.

The dividend cut to 10 cents a share will save American Investment nearly $70 million a year and comes on top of what Chairman and Chief Executive Terry Considine said were significant cost reductions during the quarter. In February, the company had announced job cuts and cut its dividend 58%.

Meanwhile, American Investment posted a net loss of $37.7 million, or 33 cents a share, compared with a year-earlier net loss of $38.9 million, or 30 cents a share. The prior year had a four-cent profit from discontinued operations.

Revenue edged up 0.4% to $349.3 million.

Funds from operations fell to 45 cents a share from 51 cents. Excluding real-estate impairment recoveries, FFO was 42 cents.

Analysts surveyed by Thomson Reuters expected a loss of 46 cents, revenue of $311 million and FFO of 34 cents a share.

Apartment Investment said average rents rose 10% per unit, and occupancy fell to 93.5% from 94.8%.

Shares closed Thursday at $7.30 and haven't traded premarket. Despite a rebound in the last month, the shares are still off more than 80% in the last year.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com