Home Properties Q3 FFO Rises

(RTTNews) - Home Properties Inc.'s (HME) Funds from Operations for the third-quarter increased to $76.78 million from last year's $73.10 million. Funds from Operations were $1.13 per share compared to $1.09 per share in the prior year period.

Net income attributable to common stockholders grew to $26.24 million from $25.04 million in the previous year. Earnings per share was $0.45 compared to $0.44 in the third quarter of 2013.

Results for the quarter were negatively impacted by the Company's decision to exit the business of developing new apartment communities as announced on July 31. In the third quarter, net severance charges of $1.024 million were expensed in connection with the elimination of development employee positions. The Company also recognized $602,000 of interest expense related to land and predevelopment carrying costs that would have otherwise been capitalized.

Total revenues were $171.31 million, up from $161.94 million last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.14 per share and revenues of $170.95 million. Analysts' estimates typically exclude special items.

The company announced a regular cash dividend on the Company's common shares of $0.73 per share for the quarter ended September 30, 2014. The dividend is payable on November 21, 2014 to shareholders of record on November 10, 2014 and is equivalent to an annualized rate of $2.92 per share. The current annual dividend represents a 4.6% yield based on the October 29 closing price of $63.71 Home Properties' common stock will begin trading ex-dividend on November 6, 2014.

Looking ahead for the fourth-quarter, the company projects Funds from Operations of $1.16 to $1.20, and Operating Funds from Operations per share for the fourth quarter of $1.16 to $1.20. Analysts project fourth-quarter earnings of $1.17 per share.

For 2014, the company expects funds from Operations per share of $4.33 to $4.37, Operating Funds from Operations per share of $4.40 to $4.44. Analysts expect annual earnings of $4.37 per share.