(Mark
One)
|
|
x
|
QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2008
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE TRANSITION PERIOD
FROM TO
|
MARYLAND
|
16-1455126
|
|
(State
of incorporation)
|
(I.R.S.
Employer Identification No.)
|
Yes
|
x
|
No
|
¨
|
Large
accelerated filer þ
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨
|
Smaller
reporting company ¨
|
Yes
|
¨
|
No
|
x
|
Yes
|
¨
|
No
|
¨
|
Common Stock
|
Outstanding at July 31,
2008
|
|
$.01
par value
|
31,920,426
|
PAGE
|
||
PART
I.
|
FINANCIAL
INFORMATION
|
|
Item
1.
|
Financial
Statements
|
|
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
9-16
|
||
Item
2.
|
17-29
|
|
Item
3.
|
30
|
|
Item
4.
|
31
|
|
PART
II.
|
OTHER
INFORMATION
|
|
Item
1A.
|
32
|
|
Item
2.
|
32
|
|
Item
4.
|
33
|
|
Item
6.
|
34
|
|
35
|
2008
|
2007
|
|||||||
(Unaudited)
|
(Note
1)
|
|||||||
ASSETS
|
||||||||
Real
estate:
|
||||||||
Land
|
$ | 506,088 | $ | 510,120 | ||||
Construction
in progress
|
83,688 | 54,069 | ||||||
Buildings,
improvements and equipment
|
3,127,033 | 3,115,966 | ||||||
3,716,809 | 3,680,155 | |||||||
Less: accumulated
depreciation
|
(589,905 | ) | (543,917 | ) | ||||
Real
estate, net
|
3,126,904 | 3,136,238 | ||||||
Cash
and cash equivalents
|
4,827 | 6,109 | ||||||
Cash
in escrows
|
29,225 | 31,005 | ||||||
Accounts
receivable, net
|
10,826 | 11,109 | ||||||
Prepaid
expenses
|
10,063 | 15,560 | ||||||
Deferred
charges
|
11,468 | 12,371 | ||||||
Other
assets
|
3,963 | 4,031 | ||||||
Total
assets
|
$ | 3,197,276 | $ | 3,216,423 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Mortgage
notes payable
|
$ | 1,944,469 | $ | 1,986,789 | ||||
Exchangeable
senior notes
|
200,000 | 200,000 | ||||||
Line
of credit
|
75,500 | 2,500 | ||||||
Accounts
payable
|
19,978 | 18,616 | ||||||
Accrued
interest payable
|
10,723 | 10,984 | ||||||
Accrued
expenses and other liabilities
|
27,766 | 27,586 | ||||||
Security
deposits
|
21,878 | 22,826 | ||||||
Total
liabilities
|
2,300,314 | 2,269,301 | ||||||
Commitments
and contingencies
|
||||||||
Minority
interest
|
266,202 | 279,061 | ||||||
Stockholders'
equity:
|
||||||||
Common
stock, $.01 par value; 80,000,000 shares authorized; 31,844,414 and
32,600,614 shares issued and outstanding at June 30, 2008 and December 31,
2007, respectively
|
318 | 326 | ||||||
Excess
stock, $.01 par value; 10,000,000 shares authorized; no shares issued or
outstanding
|
- | - | ||||||
Additional
paid-in capital
|
823,579 | 853,358 | ||||||
Distributions
in excess of accumulated earnings
|
(193,137 | ) | (185,623 | ) | ||||
Total
stockholders' equity
|
630,760 | 668,061 | ||||||
Total
liabilities and stockholders' equity
|
$ | 3,197,276 | $ | 3,216,423 |
2008
|
2007
|
|||||||
Revenues:
|
||||||||
Rental
income
|
$ | 118,208 | $ | 114,720 | ||||
Property
other income
|
10,350 | 9,561 | ||||||
Interest
income
|
20 | 83 | ||||||
Other
income
|
86 | 58 | ||||||
Total
revenues
|
128,664 | 124,422 | ||||||
Expenses:
|
||||||||
Operating
and maintenance
|
51,717 | 50,486 | ||||||
General
and administrative
|
6,620 | 5,953 | ||||||
Interest
|
28,838 | 30,239 | ||||||
Depreciation
and amortization
|
28,826 | 27,071 | ||||||
Total
expenses
|
116,001 | 113,749 | ||||||
Income
from operations
|
12,663 | 10,673 | ||||||
Minority
interest in operating partnerships
|
(3,747 | ) | (3,065 | ) | ||||
Income
from continuing operations
|
8,916 | 7,608 | ||||||
Discontinued
operations:
|
||||||||
Income
(loss) from operations, net of ($4) and $487 in 2008 and 2007,
respectively, allocated to minority interest
|
(9 | ) | 1,209 | |||||
Gain
(loss) on disposition of property, net of ($46) in 2007, allocated to
minority interest
|
(1 | ) | (115 | ) | ||||
Discontinued
operations
|
(10 | ) | 1,094 | |||||
Net
income
|
8,906 | 8,702 | ||||||
Preferred
dividends
|
- | - | ||||||
Net
income available to common shareholders
|
$ | 8,906 | $ | 8,702 | ||||
Basic
earnings per share data:
|
||||||||
Income
from continuing operations
|
$ | 0.28 | $ | 0.23 | ||||
Discontinued
operations
|
- | 0.03 | ||||||
Net
income available to common shareholders
|
$ | 0.28 | $ | 0.26 | ||||
Diluted
earnings per share data:
|
||||||||
Income
from continuing operations
|
$ | 0.28 | $ | 0.23 | ||||
Discontinued
operations
|
- | 0.03 | ||||||
Net
income available to common shareholders
|
$ | 0.28 | $ | 0.26 | ||||
Weighted
average number of shares outstanding:
|
||||||||
Basic
|
31,641,975 | 33,255,898 | ||||||
Diluted
|
32,111,791 | 33,985,283 | ||||||
Dividends
declared per share
|
$ | 0.66 | $ | 0.65 |
2008
|
2007
|
|||||||
Revenues:
|
||||||||
Rental
income
|
$ | 235,263 | $ | 225,406 | ||||
Property
other income
|
22,521 | 19,974 | ||||||
Interest
income
|
140 | 1,290 | ||||||
Other
income
|
278 | 833 | ||||||
Total
revenues
|
258,202 | 247,503 | ||||||
Expenses:
|
||||||||
Operating
and maintenance
|
108,115 | 103,737 | ||||||
General
and administrative
|
12,840 | 11,471 | ||||||
Interest
|
58,914 | 59,114 | ||||||
Depreciation
and amortization
|
57,265 | 53,406 | ||||||
Total
expenses
|
237,134 | 227,728 | ||||||
Income
from operations
|
21,068 | 19,775 | ||||||
Minority
interest in operating partnerships
|
(6,218 | ) | (4,763 | ) | ||||
Income
from continuing operations
|
14,850 | 15,012 | ||||||
Discontinued
operations:
|
||||||||
Income
(loss) from operations, net of ($381) and $889 in 2008 and 2007,
respectively, allocated to minority interest
|
(915 | ) | 2,208 | |||||
Gain
(loss) on disposition of property, net of $8,778 and ($100) in 2008 and
2007, respectively, allocated to minority interest
|
21,070 | (248 | ) | |||||
Discontinued
operations
|
20,155 | 1,960 | ||||||
Net
income
|
35,005 | 16,972 | ||||||
Preferred
dividends
|
- | (1,290 | ) | |||||
Preferred
stock issuance costs write-off
|
- | (1,902 | ) | |||||
Net
income available to common shareholders
|
$ | 35,005 | $ | 13,780 | ||||
Basic
earnings per share data:
|
||||||||
Income
from continuing operations
|
$ | 0.47 | $ | 0.36 | ||||
Discontinued
operations
|
0.63 | 0.06 | ||||||
Net
income available to common shareholders
|
$ | 1.10 | $ | 0.42 | ||||
Diluted
earnings per share data:
|
||||||||
Income
from continuing operations
|
$ | 0.46 | $ | 0.35 | ||||
Discontinued
operations
|
0.62 | 0.06 | ||||||
Net
income available to common shareholders
|
$ | 1.08 | $ | 0.41 | ||||
Weighted
average number of shares outstanding:
|
||||||||
Basic
|
31,927,868 | 33,161,446 | ||||||
Diluted
|
32,342,054 | 33,958,962 | ||||||
Dividends
declared per share
|
$ | 1.32 | $ | 1.30 |
Distributions
|
||||||||||||||||||||
Additional
|
in
Excess of
|
|||||||||||||||||||
Common Stock
|
Paid-In
|
Accumulated
|
||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Totals
|
||||||||||||||||
Balance,
December 31, 2007
|
32,600,614 | $ | 326 | $ | 853,358 | $ | (185,623 | ) | $ | 668,061 | ||||||||||
Net
income
|
- | - | - | 35,005 | 35,005 | |||||||||||||||
Issuance
of common stock, net
|
181,353 | 1 | 7,224 | - | 7,225 | |||||||||||||||
Repurchase
of common stock
|
(1,123,279 | ) | (11 | ) | (52,485 | ) | - | (52,496 | ) | |||||||||||
Conversion
of UPREIT Units for stock
|
185,726 | 2 | 9,334 | - | 9,336 | |||||||||||||||
Adjustment
of minority interest
|
- | - | 6,148 | - | 6,148 | |||||||||||||||
Dividends
paid ($1.32 per share)
|
- | - | - | (42,519 | ) | (42,519 | ) | |||||||||||||
Balance,
June 30, 2008
|
31,844,414 | $ | 318 | $ | 823,579 | $ | (193,137 | ) | $ | 630,760 |
2008
|
2007
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ | 35,005 | $ | 16,972 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Income
allocated to minority interest
|
14,615 | 5,552 | ||||||
Depreciation
and amortization
|
54,510 | 55,877 | ||||||
(Gain)
loss on disposition of property and business
|
(29,848 | ) | 348 | |||||
Issuance
of restricted stock, compensation cost of stock options and deferred
compensation
|
2,954 | 2,456 | ||||||
Changes
in assets and liabilities:
|
||||||||
Cash
held in escrows
|
1,395 | 380 | ||||||
Other
assets
|
5,352 | 4,996 | ||||||
Accounts
payable and accrued liabilities
|
(1,093 | ) | (6,058 | ) | ||||
Total
adjustments
|
47,885 | 63,551 | ||||||
Net
cash provided by operating activities
|
82,890 | 80,523 | ||||||
Cash
flows from investing activities:
|
||||||||
Purchase
of properties and other assets, net
|
(15,951 | ) | (144,163 | ) | ||||
Additions
to properties
|
(57,748 | ) | (39,356 | ) | ||||
Proceeds
(costs) from sale of properties
|
63,044 | (348 | ) | |||||
Withdrawals
from funds held in escrow, net
|
415 | 40,636 | ||||||
Net
cash used in investing activities
|
(10,240 | ) | (143,231 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from sale of common stock, net
|
4,271 | 5,200 | ||||||
Repurchase
of Series F preferred stock
|
- | (60,000 | ) | |||||
Repurchase
of common stock
|
(52,496 | ) | (7,579 | ) | ||||
Proceeds
from mortgage notes payable
|
43,145 | 100,515 | ||||||
Payments
of mortgage notes payable
|
(81,033 | ) | (65,051 | ) | ||||
Proceeds
from line of credit
|
209,500 | 166,500 | ||||||
Payments
on line of credit
|
(136,500 | ) | (127,500 | ) | ||||
Payments
of deferred loan costs
|
(680 | ) | (878 | ) | ||||
Withdrawals
from (additions to) cash escrows, net
|
(30 | ) | 366 | |||||
Dividends
and distributions paid
|
(60,109 | ) | (61,727 | ) | ||||
Net
cash used in financing activities
|
(73,932 | ) | (50,154 | ) | ||||
Net
decrease in cash and cash equivalents
|
(1,282 | ) | (112,862 | ) | ||||
Cash
and cash equivalents:
|
||||||||
Beginning
of year
|
6,109 | 118,212 | ||||||
End
of period
|
$ | 4,827 | $ | 5,350 | ||||
Supplemental disclosure of non-cash operating,
investing and financing activities:
|
||||||||
Mortgage
loans assumed associated with property acquisitions
|
$ | - | $ | 3,742 | ||||
Issuance
of UPREIT Units associated with property and other
acquisitions
|
- | 27,475 | ||||||
Increase
in real estate associated with the purchase of UPREIT
Units
|
5,600 | 13,611 | ||||||
Exchange
of UPREIT Units for common shares
|
3,736 | 8,003 | ||||||
Additions
to properties included in accounts payable
|
5,156 | 4,058 | ||||||
Fair
value of hedge instruments
|
- | (206 | ) | |||||
Preferred
stock issuance costs write-off
|
- | 1,902 | ||||||
Mortgage
note premium write-off
|
4,433 | - |
1.
|
Unaudited Interim
Financial Statements
|
2.
|
Organization and Basis
of Presentation
|
|
Organization
|
|
Basis
of Presentation
|
3.
|
Recent Accounting
Pronouncements
|
4.
|
Earnings Per Common
Share
|
Three Months
|
Six Months
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Income
from continuing operations
|
$ | 8,916 | $ | 7,608 | $ | 14,850 | $ | 15,012 | ||||||||
Less:
Preferred dividends
|
- | - | - | (1,290 | ) | |||||||||||
Less:
Preferred stock issuance costs write-off
|
- | - | - | (1,902 | ) | |||||||||||
Basic
and Diluted – Income from continuing operations
|
||||||||||||||||
applicable
to common shareholders
|
8,916 | 7,608 | 14,850 | 11,820 | ||||||||||||
Discontinued
operations
|
(10 | ) | 1,094 | 20,155 | 1,960 | |||||||||||
Net
income available to common shareholders
|
$ | 8,906 | $ | 8,702 | $ | 35,005 | $ | 13,780 | ||||||||
Basic
weighted average number of shares outstanding
|
31,641,975 | 33,255,898 | 31,927,868 | 33,161,446 | ||||||||||||
Effect
of dilutive stock options
|
423,617 | 586,098 | 375,915 | 650,830 | ||||||||||||
Effect
of restricted stock
|
46,199 | 143,287 | 38,271 | 146,686 | ||||||||||||
Diluted
weighted average number of shares outstanding
|
32,111,791 | 33,985,283 | 32,342,054 | 33,958,962 | ||||||||||||
Basic
earnings per share data:
|
||||||||||||||||
Income
from continuing operations
|
$ | 0.28 | $ | 0.23 | $ | 0.47 | $ | 0.36 | ||||||||
Discontinued
operations
|
- | 0.03 | 0.63 | 0.06 | ||||||||||||
Net
income available to common shareholders
|
$ | 0.28 | $ | 0.26 | $ | 1.10 | $ | 0.42 | ||||||||
Diluted
earnings per share data:
|
||||||||||||||||
Income
from continuing operations
|
$ | 0.28 | $ | 0.23 | $ | 0.46 | $ | 0.35 | ||||||||
Discontinued
operations
|
- | 0.03 | 0.62 | 0.06 | ||||||||||||
Net
income available to common shareholders
|
$ | 0.28 | $ | 0.26 | $ | 1.08 | $ | 0.41 |
5.
|
Variable Interest
Entities
|
6.
|
Interest
Capitalized
|
7.
|
Line of
Credit
|
8.
|
Preferred
Stock
|
9.
|
Segment
Reporting
|
Three Months
|
Six Months
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Revenues
|
||||||||||||||||
Apartments
owned
|
||||||||||||||||
Core
properties
|
$ | 122,013 | $ | 118,700 | $ | 244,561 | $ | 237,062 | ||||||||
Non-core
properties
|
6,545 | 5,581 | 13,223 | 8,318 | ||||||||||||
Reconciling
items
|
106 | 141 | 418 | 2,123 | ||||||||||||
Total
revenues
|
$ | 128,664 | $ | 124,422 | $ | 258,202 | $ | 247,503 | ||||||||
Net operating income
|
||||||||||||||||
Apartments
owned
|
||||||||||||||||
Core
properties
|
$ | 73,553 | $ | 70,539 | $ | 142,823 | $ | 137,167 | ||||||||
Non-core
properties
|
3,288 | 3,256 | 6,846 | 4,476 | ||||||||||||
Reconciling
items
|
106 | 141 | 418 | 2,123 | ||||||||||||
Net
operating income, including reconciling items
|
76,947 | 73,936 | 150,087 | 143,766 | ||||||||||||
General
and administrative expenses
|
(6,620 | ) | (5,953 | ) | (12,840 | ) | (11,471 | ) | ||||||||
Interest
expense
|
(28,838 | ) | (30,239 | ) | (58,914 | ) | (59,114 | ) | ||||||||
Depreciation
and amortization
|
(28,826 | ) | (27,071 | ) | (57,265 | ) | (53,406 | ) | ||||||||
Minority
interest in operating partnership
|
(3,747 | ) | (3,065 | ) | (6,218 | ) | (4,763 | ) | ||||||||
Income
from continuing operations
|
$ | 8,916 | $ | 7,608 | $ | 14,850 | $ | 15,012 |
9.
|
Segment
Reporting (continued)
|
Assets
|
2008
|
2007
|
||||||
Apartments
owned
|
||||||||
Core
properties
|
$ | 2,830,666 | $ | 2,839,669 | ||||
Non-core
properties
|
296,238 | 296,569 | ||||||
Reconciling
items
|
70,372 | 80,185 | ||||||
Total
assets
|
$ | 3,197,276 | $ | 3,216,423 |
10.
|
Derivative Financial
Instruments
|
11.
|
Acquisitions
|
12.
|
Disposition of
Property and Discontinued
Operations
|
Three Months
|
Six Months
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Revenues:
|
||||||||||||||||
Rental
income
|
$ | 11 | $ | 5,213 | $ | 755 | $ | 10,304 | ||||||||
Property
other income
|
5 | 238 | 29 | 652 | ||||||||||||
Total
revenues
|
16 | 5,451 | 784 | 10,956 | ||||||||||||
Expenses:
|
||||||||||||||||
Operating
and maintenance
|
29 | 1,984 | 531 | 4,572 | ||||||||||||
Interest
expense, including prepayment penalties
|
- | 477 | 1,443 | 731 | ||||||||||||
Depreciation
and amortization
|
- | 1,294 | 106 | 2,556 | ||||||||||||
Total
expenses
|
29 | 3,755 | 2,080 | 7,859 | ||||||||||||
Income
(loss) from discontinued operations before minority
interest
|
(13 | ) | 1,696 | (1,296 | ) | 3,097 | ||||||||||
Minority
interest in operating partnerships
|
4 | (487 | ) | 381 | (889 | ) | ||||||||||
Income
(loss) from discontinued operations
|
$ | (9 | ) | $ | 1,209 | $ | (915 | ) | $ | 2,208 |
13.
|
Commitments and
Contingencies
|
|
Contingencies
|
|
Guarantees
|
For
the three months ended June 30,
|
||||||||||||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||||||||||
Non-
|
Total
|
Total
|
||||||||||||||||||||||||||||||
Recurring
|
Per
|
Recurring
|
Per
|
Capital
|
Per
|
Capital
|
Per
|
|||||||||||||||||||||||||
Cap Ex
|
Unit(a)
|
Cap Ex
|
Unit(a)
|
Improvements
|
Unit(a)
|
Improvements
|
Unit(a)
|
|||||||||||||||||||||||||
New
buildings
|
$ | - | $ | - | $ | 569 | $ | 16 | $ | 569 | $ | 16 | $ | 701 | $ | 19 | ||||||||||||||||
Major
building improvements
|
1,093 | 30 | 3,503 | 95 | 4,596 | 125 | 5,130 | 141 | ||||||||||||||||||||||||
Roof
replacements
|
303 | 8 | 1,319 | 36 | 1,622 | 44 | 1,453 | 40 | ||||||||||||||||||||||||
Site
improvements
|
395 | 11 | 1,531 | 42 | 1,926 | 53 | 1,727 | 47 | ||||||||||||||||||||||||
Apartment
upgrades
|
677 | 18 | 7,289 | 199 | 7,966 | 217 | 4,563 | 125 | ||||||||||||||||||||||||
Appliances
|
1,398 | 38 | - | - | 1,398 | 38 | 839 | 23 | ||||||||||||||||||||||||
Carpeting/flooring
|
2,259 | 62 | 557 | 15 | 2,816 | 77 | 2,614 | 72 | ||||||||||||||||||||||||
HVAC/mechanicals
|
634 | 17 | 2,315 | 63 | 2,949 | 80 | 2,759 | 76 | ||||||||||||||||||||||||
Miscellaneous
|
404 | 11 | 525 | 14 | 929 | 25 | 856 | 24 | ||||||||||||||||||||||||
Totals
|
$ | 7,163 | $ | 195 | $ | 17,608 | $ | 480 | $ | 24,771 | $ | 675 | $ | 20,642 | $ | 567 |
(a)
|
Calculated
using the weighted average number of units owned, including 35,188 core
units, and 2007 acquisition units of 1,541 for the three months ended June
30, 2008; and 35,188 core units and 2007 acquisition units of 1,218 for
the three months ended June 30,
2007.
|
For
the six months ended June 30,
|
||||||||||||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||||||||||
Non-
|
Total
|
Total
|
||||||||||||||||||||||||||||||
Recurring
|
Per
|
Recurring
|
Per
|
Capital
|
Per
|
Capital
|
Per
|
|||||||||||||||||||||||||
Cap Ex
|
Unit(b)
|
Cap Ex
|
Unit(b)
|
Improvements
|
Unit(b)
|
Improvements
|
Unit(b)
|
|||||||||||||||||||||||||
New
buildings
|
$ | - | $ | - | $ | 1,226 | $ | 33 | $ | 1,226 | $ | 33 | $ | 1,113 | $ | 31 | ||||||||||||||||
Major
building improvements
|
2,185 | 59 | 5,131 | 140 | 7,316 | 199 | 7,687 | 214 | ||||||||||||||||||||||||
Roof
replacements
|
606 | 16 | 1,719 | 47 | 2,325 | 63 | 1,675 | 47 | ||||||||||||||||||||||||
Site
improvements
|
790 | 22 | 1,936 | 53 | 2,726 | 75 | 2,767 | 77 | ||||||||||||||||||||||||
Apartment
upgrades
|
1,691 | 46 | 11,215 | 305 | 12,906 | 351 | 8,000 | 222 | ||||||||||||||||||||||||
Appliances
|
2,459 | 68 | 4 | - | 2,463 | 68 | 1,680 | 47 | ||||||||||||||||||||||||
Carpeting/flooring
|
4,518 | 123 | 694 | 19 | 5,212 | 142 | 4,778 | 133 | ||||||||||||||||||||||||
HVAC/mechanicals
|
1,267 | 34 | 4,147 | 113 | 5,414 | 147 | 4,638 | 129 | ||||||||||||||||||||||||
Miscellaneous
|
808 | 22 | 805 | 22 | 1,613 | 44 | 1,729 | 48 | ||||||||||||||||||||||||
Totals
|
$ | 14,324 | $ | 390 | $ | 26,877 | $ | 732 | $ | 41,201 | $ | 1,122 | $ | 34,067 | $ | 948 |
(b)
|
Calculated
using the weighted average number of units owned, including 35,188 core
units, and 2007 acquisition units of 1,541 for the six months ended June
30, 2008; and 35,188 core units and 2007 acquisition units of 746 for the
six months ended June 30, 2007.
|
For
the three months ended June 30,
|
||||||||||||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||||||||||
Non-
|
Total
|
Total
|
||||||||||||||||||||||||||||||
Recurring
|
Per
|
Recurring
|
Per
|
Capital
|
Per
|
Capital
|
Per
|
|||||||||||||||||||||||||
Cap Ex
|
Unit(b)
|
Cap Ex
|
Unit(b)
|
Improvements
|
Unit(b)
|
Improvements
|
Unit(b)
|
|||||||||||||||||||||||||
Core
Communities
|
$ | 6,863 | $ | 195 | $ | 15,847 | $ | 450 | $ | 22,710 | $ | 645 | $ | 20,392 | $ | 580 | ||||||||||||||||
2008
Acquisition Communities
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
2007
Acquisition Communities
|
300 | 195 | 1,761 | 1,143 | 2,061 | 1,338 | 250 | 205 | ||||||||||||||||||||||||
Sub-total
|
7,163 | 195 | 17,608 | 479 | 24,771 | 674 | 20,642 | 567 | ||||||||||||||||||||||||
2008
Disposed Communities
|
- | - | - | - | - | - | 163 | 273 | ||||||||||||||||||||||||
2007
Disposed Communities
|
- | - | - | - | - | - | 630 | 581 | ||||||||||||||||||||||||
Corporate
office expenditures(1)
|
- | - | - | - | 1,118 | - | 677 | - | ||||||||||||||||||||||||
Totals
|
$ | 7,163 | $ | 195 | $ | 17,608 | $ | 479 | $ | 25,889 | $ | 674 | $ | 22,112 | $ | 563 |
(1)
|
No
distinction is made between recurring and non-recurring expenditures for
corporate office. Corporate office expenditures includes
principally computer hardware, software and office furniture, fixtures and
leasehold improvements.
|
(b)
|
Calculated
using the weighted average number of units owned, including 35,188 core
units, and 2007 acquisition units of 1,541 for the three months ended June
30, 2008; and 35,188 core units, 2007 acquisition units of 1,218, 2008
disposed units of 598 and 2007 disposed units of 1,084 for the three
months ended June 30, 2007.
|
For
the six months ended June 30,
|
||||||||||||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||||||||||
Non-
|
Total
|
Total
|
||||||||||||||||||||||||||||||
Recurring
|
Per
|
Recurring
|
Per
|
Capital
|
Per
|
Capital
|
Per
|
|||||||||||||||||||||||||
Cap Ex
|
Unit(d)
|
Cap Ex
|
Unit(d)
|
Improvements
|
Unit(d)
|
Improvements
|
Unit(d)
|
|||||||||||||||||||||||||
Core
Communities
|
$ | 13,723 | $ | 390 | $ | 24,096 | $ | 685 | $ | 37,819 | $ | 1,075 | $ | 33,785 | $ | 960 | ||||||||||||||||
2008
Acquisition Communities
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
2007
Acquisition Communities
|
601 | 390 | 2,781 | 1,805 | 3,382 | 2,195 | 282 | 378 | ||||||||||||||||||||||||
Sub-total
|
14,324 | 390 | 26,877 | 732 | 41,201 | 1,122 | 34,067 | 948 | ||||||||||||||||||||||||
2008
Disposed Communities
|
14 | 122 | - | - | 14 | 122 | 321 | 537 | ||||||||||||||||||||||||
2007
Disposed Communities
|
- | - | - | - | - | - | 1,114 | 1,028 | ||||||||||||||||||||||||
Corporate
office expenditures(1)
|
- | - | - | - | 2,189 | - | 1,712 | - | ||||||||||||||||||||||||
Totals
|
$ | 14,338 | $ | 389 | $ | 26,877 | $ | 729 | $ | 43,404 | $ | 1,119 | $ | 37,214 | $ | 944 |
(1)
|
No
distinction is made between recurring and non-recurring expenditures for
corporate office. Corporate office expenditures includes
principally computer hardware, software and office furniture, fixtures and
leasehold improvements.
|
(d)
|
Calculated
using the weighted average number of units owned, including 35,188 core
units, 2007 acquisition units of 1,541 and 2008 disposed units of 115 for
the six months ended June 30, 2008; and 35,188 core units, 2007
acquisition units of 746, 2008 disposed units of 598 and 2007 disposed
units of 1,084 for the six months ended June 30,
2007.
|
Three Months
|
Six Months
|
|||||||||||||||||||||||||||||||
2008
|
2007
|
$ Change
|
% Change
|
2008
|
2007
|
$ Change
|
% Change
|
|||||||||||||||||||||||||
Rent
|
$ | 112,125 | $ | 109,412 | $ | 2,713 | 2.5 | % | $ | 223,134 | $ | 217,408 | $ | 5,726 | 2.6 | % | ||||||||||||||||
Utility
recovery revenue
|
4,670 | 4,522 | 148 | 3.3 | % | 11,407 | 10,266 | 1,141 | 11.1 | % | ||||||||||||||||||||||
Rent
including recoveries
|
116,795 | 113,934 | 2,861 | 2.5 | % | 234,541 | 227,674 | 6,867 | 3.0 | % | ||||||||||||||||||||||
Property
other income
|
5,218 | 4,766 | 452 | 9.5 | % | 10,020 | 9,388 | 632 | 6.7 | % | ||||||||||||||||||||||
Total
revenue
|
122,013 | 118,700 | 3,313 | 2.8 | % | 244,561 | 237,062 | 7,499 | 3.2 | % | ||||||||||||||||||||||
Operating
and maintenance
|
(48,460 | ) | (48,161 | ) | (299 | ) | (0.6 | %) | (101,738 | ) | (99,895 | ) | (1,843 | ) | (1.8 | %) | ||||||||||||||||
Net
operating income
|
$ | 73,553 | $ | 70,539 | $ | 3,014 | 4.3 | % | $ | 142,823 | $ | 137,167 | $ | 5,656 | 4.1 | % |
Three Months
|
Six Months
|
|||||||||||||||||||||||||||||||
2008
|
2007
|
$ Change
|
% Change
|
2008
|
2007
|
$ Change
|
% Change
|
|||||||||||||||||||||||||
Rent
|
$ | 118,208 | $ | 114,720 | $ | 3,488 | 3.0 | % | $ | 235,263 | $ | 225,406 | $ | 9,857 | 4.4 | % | ||||||||||||||||
Utility
recovery revenue
|
4,761 | 4,578 | 183 | 4.0 | % | 11,568 | 10,334 | 1,234 | 11.9 | % | ||||||||||||||||||||||
Rent
including recoveries
|
122,969 | 119,298 | 3,671 | 3.1 | % | 246,831 | 235,740 | 11,091 | 4.7 | % | ||||||||||||||||||||||
Property
other income
|
5,589 | 4,983 | 606 | 12.2 | % | 10,953 | 9,640 | 1,313 | 13.6 | % | ||||||||||||||||||||||
Total
revenue
|
128,558 | 124,281 | 4,277 | 3.4 | % | 257,784 | 245,380 | 12,404 | 5.1 | % | ||||||||||||||||||||||
Operating
and maintenance
|
(51,717 | ) | (50,486 | ) | (1,231 | ) | (2.4 | %) | (108,115 | ) | (103,737 | ) | (4,378 | ) | (4.2 | %) | ||||||||||||||||
Net
operating income
|
$ | 76,841 | $ | 73,795 | $ | 3,046 | 4.1 | % | $ | 149,669 | $ | 141,643 | $ | 8,026 | 5.7 | % |
Three Months
|
Six Months
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
income available to common shareholders
|
$ | 8,906 | $ | 8,702 | $ | 35,005 | $ | 13,780 | ||||||||
Real
property depreciation and amortization
|
28,207 | 28,094 | 56,158 | 55,170 | ||||||||||||
Minority
interest
|
3,747 | 3,065 | 6,218 | 4,763 | ||||||||||||
Minority
interest – income (loss) from discontinued operations
|
(4 | ) | 487 | (381 | ) | 889 | ||||||||||
Loss
(gain) on disposition of discontinued operations
|
1 | 115 | (21,070 | ) | 248 | |||||||||||
FFO
– Basic as defined above
|
40,857 | 40,463 | 75,930 | 74,850 | ||||||||||||
Loss
from early extinguishment of debt in connection with sale of real
estate
|
- | - | 1,384 | - | ||||||||||||
FFO
– Basic as adjusted by the Company
|
40,857 | 40,463 | 77,314 | 74,850 | ||||||||||||
Convertible
preferred dividends (2)
|
- | - | - | - | ||||||||||||
FFO
– Diluted as adjusted by the Company
|
$ | 40,857 | $ | 40,463 | $ | 77,314 | $ | 74,850 | ||||||||
Weighted
average common shares/units outstanding (1):
|
||||||||||||||||
Basic
|
44,960.3 | 46,713.0 | 45,306.7 | 46,581.8 | ||||||||||||
Diluted
(2)
|
45,430.2 | 47,442.4 | 45,720.8 | 47,379.3 |
(1)
|
Basic
includes common stock outstanding and the conversion of all UPREIT Units
to common shares. Diluted includes additional common stock
equivalents, including convertible preferred
stock.
|
(2)
|
There
was no convertible preferred stock outstanding during the periods
presented.
|
ITEM
2.
|
UNREGISTERED SALES OF EQUITY SECURITIES; USE OF PROCEEDS
FROM REGISTERED SECURITIES
|
Total
|
Board
|
|||||||||||||||||||
shares/units
|
approved
|
Maximum
|
||||||||||||||||||
purchased
|
increase
|
shares/units
|
||||||||||||||||||
Total
|
Average
|
under
|
under
|
available
under
|
||||||||||||||||
shares/units
|
price
per
|
Company
|
Company
|
the
Company
|
||||||||||||||||
Period
|
purchased
(1)
|
share/unit
|
program
|
program
|
program
|
|||||||||||||||
Balance
April 1, 2008:
|
291,160 | |||||||||||||||||||
April,
2008
|
382 | $ | 51.04 | - | - | 291,160 | ||||||||||||||
May,
2008
|
10,104 | 50.62 | - | 2,000,000 | 2,291,160 | |||||||||||||||
June,
2008
|
561 | 51.60 | - | - | 2,291,160 | |||||||||||||||
Total
Second Quarter 2008
|
11,047 | $ | 50.69 | - | 2,000,000 | 2,291,160 |
(1)
|
During
the three months ended June 30, 2008, the Company repurchased 11,047
shares of common stock through share repurchase by the transfer agent in
the open market in connection with the Company's Dividend Reinvestment and
Direct Stock Purchase Plan, which are included in this
table.
|
DIRECTOR NAME
|
SHARES FOR
|
SHARES WITHHELD
|
Josh
E. Fidler
|
28,009,087
|
298,389
|
Alan
L. Gosule
|
27,959,520
|
347,956
|
Leonard
F. Helbig, III
|
27,858,366
|
449,110
|
Roger
W. Kober
|
27,845,757
|
461,719
|
Norman
P. Leenhouts
|
27,898,909
|
408,567
|
Nelson
B. Leenhouts
|
27,924,664
|
382,812
|
Edward
J. Pettinella
|
27,946,311
|
361,165
|
Clifford
W. Smith, Jr.
|
27,881,172
|
426,304
|
Paul
L. Smith
|
27,852,486
|
454,990
|
Amy
L. Tait
|
27,659,145
|
648,331
|
Shares
Voted For:
|
19,028,374
|
|
Shares
Voted Against:
|
6,045,657
|
|
Shares
Abstaining:
|
87,829
|
Shares
Voted For:
|
24,322,574
|
|
Shares
Voted Against:
|
745,099
|
|
Shares
Abstaining:
|
94,187
|
Shares
Voted For:
|
28,099,672
|
|
Shares
Voted Against:
|
174,952
|
|
Shares
Abstaining:
|
32,853
|
Exhibit
4.1
|
Amendment
Number One to Home Properties, Inc. Deferred Bonus
Plan*
|
Exhibit
10.1
|
Amendment
No. Ninety-Six to the Second Amended and Restated Agreement of Limited
Partnership of Home Properties, L.P.*
|
Exhibit
31.1
|
Section
302 Certification of Chief Executive Officer*
|
Exhibit
31.2
|
Section
302 Certification of Chief Financial Officer*
|
Exhibit
32.1
|
Section
906 Certification of Chief Executive Officer**
|
Exhibit
32.2
|
Section
906 Certification of Chief Financial
Officer**
|
*
|
Filed
herewith
|
**
|
Furnished
herewith
|
HOME PROPERTIES, INC.
|
||
(Registrant)
|
||
Date:
|
August 8, 2008
|
|
By:
|
/s/ Edward J. Pettinella
|
|
Edward
J. Pettinella
|
||
President
and Chief Executive Officer
|
||
Date:
|
August 8, 2008
|
|
By:
|
/s/ David P. Gardner
|
|
David
P. Gardner
|
||
Executive
Vice President and
|
||
Chief
Financial Officer
|