VOL. 111 | NO. 137 | Monday, July 28, 1997
report increase in FFO
Mid-America Apartment Communities Inc. reported funds from operations for the second quarter grew to $10.7 million, a 21 percent increase over the second quarter of 1996.
Revenues increased to $32.7 million, a 19.6 percent increase from the same quarter a year ago. Expenses increased 18.5 percent, resulting in a 20.2 percent increase in net operating income for the quarter.
At June 30, overall occupancy was 94.1 percent compared to 94 percent for the same quarter a year ago, said Eric Bolton, president and chief operating officer.
Average rent per unit for the companys entire portfolio increased 4.7 percent to $540.43. Rental growth was satisfactory in the majority of the companys markets, Bolton said, led by a 4.3 percent year-to-year increase in average rent per unit in its Florida communities; 4 percent in its Memphis, Kentucky and Ohio markets; and 3.3 percent in its Texas markets.
Simon Wadsworth, executive vice president and chief financial officer, said a reduction of debt in the second quarter has given the company the ability to grow.
"As a result of the successful stock offering in March, we have reduced our debt to total market capitalization to 41 percent, from 49 percent a year ago, giving us the ability to continue our successful acquisition and development program while remaining comfortably within our financial leverage goals."
During the second quarter, the company acquired 1,064 apartment units for $42.3 million. The company has several other properties in various stages of negotiation, two of which should close in early August, Wadsworth said.
The company focuses primarily on mid-size markets, which are improving more than weakening, said George E. Cates, chairman and chief executive officer.
At June 30, he said, the companys 96.8 percent occupancy in Jackson, Tenn., was up 8.2 percent from a year earlier. Though the overall Nashville market is softening, Cates said, the companys two properties improved 1.4 percent over a year earlier to 96.8 percent occupancy.
Mid-Americas 4,092 stabilized units in Memphis, at 94.7 percent were 0.7 percent below a year earlier, but 2,788 stabilized Texas units improved by 1.7 percent to 93.6 percent occupancy.