CLP FFO beats estimates

BIRMINGHAM, Ala.–(BUSINESS WIRE)– Colonial Properties Trust (NYSE:CLP – News) announced its results for the quarter ended June 30, 2011.

For the second quarter 2011, the company reported a net loss available to common shareholders of $6.4 million, or $0.08 per diluted share, compared with a net loss available to common shareholders of $11.8 million, or $0.17 per diluted share, for the same period in 2010. For the six months ended June 30, 2011, the company reported a net loss available to common shareholders of $18.1 million, or $0.22 per diluted share, compared with a net loss available to common shareholders of $24.2 million, or $0.36 per diluted share, for the same period in 2010. The change from the prior year periods is primarily attributable to an increase in net operating income (NOI) from the company’s multifamily same-property communities, as a result of improving rental rates, and income from multifamily properties acquired in 2011.

Funds from Operations Available to Common Shareholders and Unitholders (“FFO”), a widely accepted measure of REIT performance, for the second quarter 2011 was $28.7 million, or $0.32 per diluted share, compared with $20.7 million, or $0.27 per diluted share, for the same period in 2010. FFO for the six months ended June 30, 2011, totaled $51.9 million, or $0.58 per diluted share, compared with $41.3 million, or $0.54 per diluted share, for the same period in 2010. The change from the prior-year periods is primarily attributable to an increase in NOI from the company’s multifamily same-property communities, as a result of improving rental rates, and income from multifamily properties acquired in 2011. FFO per share reflects the additional common shares issued under the company’s “at-the-market” equity offering programs in 2010 and the six months ended June 30, 2011.

A reconciliation of net loss available to common shareholders to FFO and to Operating FFO, as well as definitions and statements of purpose, is included in the financial tables accompanying this press release.

“Multifamily fundamentals continued to improve during the second quarter, leading to an increase in our 2011 full-year same-property NOI and FFO per share guidance range,” stated Thomas H. Lowder, Chairman and Chief Executive Officer. “Our new and renewal lease rates are accelerating, while resident turnover has declined and occupancy levels have remained high. The second quarter results demonstrate our ability to capitalize on these fundamentals, execute on our balance sheet targets and focus on growing the company.”

Highlights for the Second Quarter 2011

Multifamily same-property NOI increased 7.5 percent compared with second quarter 2010

Multifamily same-property revenue increased 3.9 percent compared with second quarter 2010

Ended the quarter with multifamily same-property physical occupancy of 96.2 percent

Resident turnover levels declined to 58.7 percent at June 30, 2011 from 62.6 percent the prior year

Increased full-year 2011 same-property NOI guidance range to 5.5 to 7.0 percent, up from 4.0 to 6.0 percent

Announced $75 million “at-the-market” equity offering program, which was subsequently completed in early July with 3.6 million shares issued at an average price of $20.67 per share

Subsequent to quarter end, completed a $250 million seven-year unsecured term loan, reducing outstanding borrowings under our unsecured credit facility