Equity Residential (EQR), a leading real estate investment trust (REIT), reported fiscal 2010 first quarter funds from operations (FFO) of $145.6 million or 49 cents per share, compared to $166.1 million or 57 cents per share in the year-earlier quarter.
First quarter 2010 FFO included a negative impact due to adverse weather conditions on the East Coast, California, and Arizona. Excluding the non-recurring items, FFO for the quarter was 51 cents per share.
Total revenues during the quarter were $488.7 million, compared to $483.1 million in the year-ago period. Same-store (first quarter 2010 vs. first quarter 2009 comparison, which includes 117,512 apartment units) quarterly revenues decreased 2.9%, while same-store operating expenses increased 1.5%. Same-store net operating income (NOI) during the quarter decreased 5.6% year-over-year primarily due to 3.9% decrease in average rental rates.
During the quarter, Equity Residential acquired six properties totaling 1,467 units for $639.3 million at a weighted average cap rate of 5.6%. The company also purchased a land parcel in Virginia for $12.0 million.
Subsequent to the end of the quarter, the company acquired property in Washington DC for $166.8 million. During the quarter, Equity Residential sold eight consolidated properties, consisting of 2,011 apartment units, for an aggregate sale price of $145.9 million at a weighted average cap rate of 7.5%.
Equity Residential issued approximately 1.1 million common shares during the quarter at an average price of $33.87 each, for a total consideration of $35.8 million. At quarter end, the company had cash and cash equivalents of $60.2 million and total debt of $9.5 billion.
For full-year 2010, Equity Residential reiterated its earlier FFO guidance in the range of $1.95 to $2.15 per share, while FFO for the second quarter is expected to be in the range of 53 cents to 57 cents.
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