DENVER (AP) -- Apartment owner UDR Inc. reported Monday that its funds from operations vaulted 27 percent in the second quarter, driven by a hefty gain on the sale of property and higher rental income.
The Denver-based real estate investment trust said funds from operations, or FFO, climbed to $81.2 million, or 33 cents per share, for the three months ended June 30. That compares to FFO of $63.6 million, or 31 cents per share, in the prior-year period.
The results were in line with analysts' consensus forecast, according to FactSet.
FFO is considered an important reading of operating performance for real estate investment trusts. It adds depreciation and amortization expenses, as well as other nonoperating items, back to net income.
UDR's latest results included a gain on sale of property, which offset costs related to the redemption of preferred shares, debt extinguishment and other one-time expenses.
The company's net income attributable to common shareholders surged to $145.7 million, or 62 cents per share, compared with net income of $12.1 million, or 6 cents per share, a year earlier.
UDR's rental income grew to $177.5 million from $150.6 million.
Revenue at properties operated at least one year rose 5.6 percent, even though occupancy was flat at 95.8 percent. Same-property costs rose 3.3 percent on higher taxes, utility, repairs, maintenance and other expenses.
The company left unchanged its forecast of 2012 funds from operations of between $1.34 and $1.39 per share. Analysts are expecting $1.36 per share.
UDR shares ended regular trading down 5 cents at $26.88. The stock recovered 4 cents to $26.92 in aftermarket trading.
