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