x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarterly period ended
|
MARCH 31,
2009
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the transition period from
|
____________________________________ to ____________________________________
|
||
Commission
File Number:
|
1-13136
|
||
HOME
PROPERTIES, INC.
|
|||
(exact
name of registrant as specified in its charter)
|
|||
MARYLAND
|
16-1455126
|
||
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
||
850 Clinton Square, Rochester, New
York
|
14604
|
||
(Address
of principal executive offices)
|
(Zip
Code)
|
||
(585) 546-4900
|
|||
(Registrant’s
telephone number, including area code)
|
|||
N/A
|
|||
(Former
name, former address and former fiscal year, if changed since last
report)
|
Yes
|
x
|
No
|
¨
|
Yes
|
¨
|
No
|
¨
|
|
Large
accelerated filer þ
|
Accelerated
filer ¨
|
|
Non-accelerated
filer ¨ (Do
not check if a smaller reporting company)
|
Smaller
reporting company ¨
|
Yes
|
¨
|
No
|
x
|
Yes
|
¨
|
No
|
¨
|
Common Stock
|
Outstanding at April 30,
2009
|
|
$.01
par value
|
32,905,925
|
PAGE
|
||
PART
I.
|
FINANCIAL
INFORMATION
|
|
Item
1.
|
Financial
Statements (Unaudited)
|
|
March 31, 2009 and December 31,
2008
|
3
|
|
Three months ended March 31,
2009 and 2008
|
4
|
|
Three months ended March 31,
2009 and year ended December 31, 2008
|
5
|
|
Three months ended March 31,
2009 and 2008
|
6
|
|
7-16
|
||
Item
2.
|
17-26
|
|
Item
3.
|
27
|
|
Item
4.
|
27
|
|
PART
II.
|
OTHER
INFORMATION
|
|
Item
1A.
|
28
|
|
Item
2.
|
28
|
|
Item
4.
|
29
|
|
Item
5.
|
29
|
|
Item
6.
|
29
|
|
30
|
2009
|
2008
|
|||||||
ASSETS
|
||||||||
Real
estate:
|
||||||||
Land
|
$ | 511,407 | $ | 515,610 | ||||
Construction
in progress
|
124,933 | 111,039 | ||||||
Buildings,
improvements and equipment
|
3,201,790 | 3,245,741 | ||||||
3,838,130 | 3,872,390 | |||||||
Less: accumulated
depreciation
|
(654,732 | ) | (636,970 | ) | ||||
Real estate, net
|
3,183,398 | 3,235,420 | ||||||
Cash
and cash equivalents
|
8,260 | 6,567 | ||||||
Cash
in escrows
|
27,566 | 27,904 | ||||||
Accounts
receivable
|
12,855 | 14,078 | ||||||
Prepaid
expenses
|
13,695 | 16,277 | ||||||
Deferred
charges
|
10,233 | 11,360 | ||||||
Other
assets
|
3,860 | 5,488 | ||||||
Total assets
|
$ | 3,259,867 | $ | 3,317,094 | ||||
LIABILITIES
AND EQUITY
|
||||||||
Mortgage
notes payable
|
$ | 2,067,809 | $ | 2,112,331 | ||||
Exchangeable
senior notes
|
134,649 | 134,169 | ||||||
Line
of credit
|
75,500 | 71,000 | ||||||
Accounts
payable
|
23,040 | 23,731 | ||||||
Accrued
interest payable
|
12,301 | 10,845 | ||||||
Accrued
expenses and other liabilities
|
28,183 | 32,043 | ||||||
Security
deposits
|
20,780 | 21,443 | ||||||
Total liabilities
|
2,362,262 | 2,405,562 | ||||||
Commitments
and contingencies
|
||||||||
Equity:
|
||||||||
Common
stock, $.01 par value; 80,000,000 shares authorized; 32,867,925
and 32,431,304 shares issued and outstanding at March 31,
2009 and December 31, 2008, respectively
|
329 | 324 | ||||||
Excess
stock, $.01 par value; 10,000,000 shares authorized; no shares issued or
outstanding
|
- | - | ||||||
Additional
paid-in capital
|
867,216 | 857,415 | ||||||
Distributions
in excess of accumulated earnings
|
(218,073 | ) | (206,961 | ) | ||||
Total common stockholders'
equity
|
649,472 | 650,778 | ||||||
Noncontrolling
interests
|
248,133 | 260,754 | ||||||
Total
equity
|
897,605 | 911,532 | ||||||
Total liabilities and
equity
|
$ | 3,259,867 | $ | 3,317,094 |
2009
|
2008
|
|||||||
Revenues:
|
||||||||
Rental
income
|
$ | 116,760 | $ | 112,937 | ||||
Property
other income
|
12,444 | 11,712 | ||||||
Interest
income
|
8 | 120 | ||||||
Other
income
|
278 | 192 | ||||||
Total
revenues
|
129,490 | 124,961 | ||||||
Expenses:
|
||||||||
Operating
and maintenance
|
57,163 | 54,115 | ||||||
General
and administrative
|
5,888 | 6,220 | ||||||
Interest
|
30,553 | 30,016 | ||||||
Depreciation
and amortization
|
30,047 | 27,473 | ||||||
Total
expenses
|
123,651 | 117,824 | ||||||
Income
from continuing operations
|
5,839 | 7,137 | ||||||
Discontinued
operations:
|
||||||||
Loss
from discontinued operations
|
(4,288 | ) | (648 | ) | ||||
Gain
on disposition of property
|
13,508 | 29,849 | ||||||
Discontinued
operations
|
9,220 | 29,201 | ||||||
Net
income
|
15,059 | 36,338 | ||||||
Net
income attributable to noncontrolling interests
|
(4,157 | ) | (10,686 | ) | ||||
Net
income attributable to common shareholders
|
$ | 10,902 | $ | 25,652 | ||||
Basic
earnings per share:
|
||||||||
Income
from continuing operations
|
$ | 0.13 | $ | 0.16 | ||||
Discontinued
operations
|
0.20 | 0.64 | ||||||
Net
income attributable to common shareholders
|
$ | 0.33 | $ | 0.80 | ||||
Diluted
earnings per share:
|
||||||||
Income
from continuing operations
|
$ | 0.13 | $ | 0.16 | ||||
Discontinued
operations
|
0.20 | 0.63 | ||||||
Net
income attributable to common shareholders
|
$ | 0.33 | $ | 0.79 | ||||
Weighted
average number of shares outstanding:
|
||||||||
Basic
|
32,668,662 | 32,211,720 | ||||||
Diluted
|
32,699,764 | 32,589,652 | ||||||
Dividends
declared per share
|
$ | 0.67 | $ | 0.66 |
Distributions
|
||||||||||||||||||||||||
Additional
|
in
Excess of
|
|||||||||||||||||||||||
Common Stock
|
Paid-In
|
Accumulated
|
Noncontrolling
|
|||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Interests
|
Totals
|
|||||||||||||||||||
Balance,
December 31, 2007
|
32,600,614 | $ | 326 | $ | 853,358 | $ | (185,623 | ) | $ | 279,061 | $ | 947,122 | ||||||||||||
Cumulative
effect of change in accounting principle
|
- | - | 9,688 | (2,066 | ) | 3,138 | 10,760 | |||||||||||||||||
Balance,
January 1, 2008
|
32,600,614 | 326 | 863,046 | (187,689 | ) | 282,199 | 957,882 | |||||||||||||||||
Net
income
|
- | - | - | 66,081 | 27,124 | 93,205 | ||||||||||||||||||
Issuance
of common stock, net
|
370,714 | 3 | 16,824 | - | - | 16,827 | ||||||||||||||||||
Repurchase
of common stock
|
(1,165,783 | ) | (11 | ) | (53,919 | ) | - | - | (53,930 | ) | ||||||||||||||
Repurchase
of convertible debt
|
- | - | 88 | (88 | ) | - | - | |||||||||||||||||
Conversion
of UPREIT Units for common stock
|
625,759 | 6 | 30,222 | - | (12,435 | ) | 17,793 | |||||||||||||||||
Adjustment
of noncontrolling interests
|
- | - | 1,154 | - | (1,154 | ) | - | |||||||||||||||||
Dividends
and distributions paid ($2.65 per share)
|
- | - | - | (85,265 | ) | (34,980 | ) | (120,245 | ) | |||||||||||||||
Balance,
December 31, 2008
|
32,431,304 | $ | 324 | $ | 857,415 | $ | (206,961 | ) | $ | 260,754 | $ | 911,532 | ||||||||||||
Net
income
|
- | - | - | 10,902 | 4,157 | 15,059 | ||||||||||||||||||
Issuance
of common stock, net
|
29,116 | 1 | 2,041 | - | - | 2,042 | ||||||||||||||||||
Repurchase
of common stock
|
(25,078 | ) | - | (711 | ) | - | - | (711 | ) | |||||||||||||||
Conversion
of UPREIT Units for common stock
|
432,583 | 4 | 8,680 | - | (8,684 | ) | - | |||||||||||||||||
Adjustment
of noncontrolling interests
|
- | - | (209 | ) | - | 209 | - | |||||||||||||||||
Dividends
and distributions paid ($0.67 per share)
|
- | - | - | (22,014 | ) | (8,303 | ) | (30,317 | ) | |||||||||||||||
Balance,
March 31, 2009
|
32,867,925 | $ | 329 | $ | 867,216 | $ | (218,073 | ) | $ | 248,133 | $ | 897,605 |
2009
|
2008
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ | 15,059 | $ | 36,338 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation and
amortization
|
30,494 | 29,354 | ||||||
Amortization
of debt discount
|
480 | 648 | ||||||
Gain on disposition of
property and business
|
(13,508 | ) | (29,849 | ) | ||||
Issuance of restricted stock,
compensation cost of stock options
and deferred
compensation
|
1,195 | 970 | ||||||
Changes in assets and
liabilities:
|
||||||||
Cash in escrows
|
781 | 1,394 | ||||||
Other assets
|
4,644 | 211 | ||||||
Accounts
payable and accrued liabilities
|
(3,058 | ) | (365 | ) | ||||
Total
adjustments
|
21,028 | 2,363 | ||||||
Net
cash provided by operating activities
|
36,087 | 38,701 | ||||||
Cash
flows from investing activities:
|
||||||||
Purchase
of land for development
|
- | (15,951 | ) | |||||
Additions
to properties
|
(20,313 | ) | (19,998 | ) | ||||
Additions
to construction in progress
|
(11,170 | ) | (5,897 | ) | ||||
Proceeds
from sale of properties and business, net
|
66,912 | 63,045 | ||||||
Additions
to cash in escrows, net
|
(412 | ) | (6,777 | ) | ||||
Net
cash provided by investing activities
|
35,017 | 14,422 | ||||||
Cash
flows from financing activities:
|
||||||||
Proceeds from sale of common
stock, net
|
847 | 1,837 | ||||||
Repurchase of common
stock
|
(711 | ) | (51,588 | ) | ||||
Proceeds
from mortgage notes payable
|
- | 11,470 | ||||||
Payments of mortgage notes
payable
|
(43,887 | ) | (36,562 | ) | ||||
Proceeds from line of
credit
|
78,500 | 88,000 | ||||||
Payments on line of
credit
|
(74,000 | ) | (36,500 | ) | ||||
Proceeds from (payments of)
deferred loan costs
|
164 | (231 | ) | |||||
Additions to cash in escrows,
net
|
(7 | ) | (12 | ) | ||||
Dividends and distributions
paid
|
(30,317 | ) | (30,360 | ) | ||||
Net
cash used in financing activities
|
(69,411 | ) | (53,946 | ) | ||||
Net
increase (decrease) in cash and cash equivalents
|
1,693 | (823 | ) | |||||
Cash
and cash equivalents:
|
||||||||
Beginning of
year
|
6,567 | 6,109 | ||||||
End of period
|
$ | 8,260 | $ | 5,286 | ||||
Supplemental disclosure of non-cash operating,
investing and financing activities:
|
||||||||
Exchange
of UPREIT Units for common shares
|
$ | 8,684 | $ | 538 | ||||
Additions
to properties included in accounts payable
|
5,587 | 1,207 | ||||||
Mortgage
note premium write-off
|
615 | - |
1.
|
Unaudited Interim
Financial Statements
|
2.
|
Organization and Basis
of Presentation
|
|
Organization
|
|
Basis
of Presentation
|
3.
|
Recently Adopted and
Recently Issued Accounting
Standards
|
Consolidated
Balance Sheet:
|
March 31, 2009
|
December 31, 2008
|
||||||
Principal
amount of liability component
|
$ | 140,000 | $ | 140,000 | ||||
Unamortized
discount
|
(5,351 | ) | (5,831 | ) | ||||
Carrying
amount of liability component
|
$ | 134,649 | $ | 134,169 | ||||
Carrying
amount of equity component
|
$ | 13,950 | $ | 13,950 | ||||
March 31,
|
||||||||
Consolidated
Income Statement:
|
2009
|
2008
|
||||||
Coupon
interest
|
$ | 1,444 | $ | 2,063 | ||||
Discount
amortization - issuance costs
|
138 | 195 | ||||||
Discount
amortization - FSP APB 14-1
|
480 | 648 | ||||||
Total
interest expense
|
$ | 2,062 | $ | 2,906 | ||||
Effective
interest rate
|
5.75 | % | 5.75 | % | ||||
Conversion
price per share, as adjusted
|
$ | 73.04 | $ | 73.11 |
3.
|
Recently Adopted and
Recently Issued Accounting Standards
(continued)
|
Consolidated
Balance Sheet:
|
December 31,
2008
|
|||||||||||||||||||
Originally
Reported
|
As
Adjusted
|
Effect
of
Change
|
Impact
of FSP
APB
14-1
|
Impact
of
SFAS
160
|
||||||||||||||||
Deferred
charges
|
$ | 11,473 | $ | 11,360 | $ | (113 | ) | $ | (113 | ) | $ | - | ||||||||
Total
assets
|
3,317,207 | 3,317,094 | (113 | ) | (113 | ) | - | |||||||||||||
Exchangeable
senior notes
|
140,000 | 134,169 | (5,831 | ) | (5,831 | ) | - | |||||||||||||
Total
liabilities
|
2,411,393 | 2,405,562 | (5,831 | ) | (5,831 | ) | - | |||||||||||||
Minority
interest
|
259,136 | - | (259,136 | ) | - | (259,136 | ) | |||||||||||||
Additional
paid-in capital
|
847,576 | 857,415 | 9,839 | 9,839 | - | |||||||||||||||
Distributions
in excess of accumulated earnings
|
(201,222 | ) | (206,961 | ) | (5,739 | ) | (5,739 | ) | - | |||||||||||
Total
stockholders' equity
|
646,678 | 650,778 | 4,100 | 4,100 | - | |||||||||||||||
Noncontrolling
interests
|
- | 260,754 | 260,754 | 1,618 | 259,136 | |||||||||||||||
Total
equity
|
646,678 | 911,532 | 264,854 | 5,718 | 259,136 | |||||||||||||||
Total
liabilities and stockholders' equity
|
3,317,207 | 3,317,094 | (113 | ) | (113 | ) | - |
Consolidated
Statement of Operations:
|
Three Months Ended
March 31, 2008
|
|||||||||||||||||||
Originally
Reported
¹
|
As
Adjusted
|
Effect
of
Change
|
Impact
of FSP
APB
14-1
|
Impact
of
SFAS
160
|
||||||||||||||||
Interest
|
$ | 29,383 | $ | 30,016 | $ | 633 | $ | 633 | $ | - | ||||||||||
Total
expense
|
117,191 | 117,824 | 633 | 633 | - | |||||||||||||||
Income
from continuing operations before gain on
early
retirement of debt
|
7,770 | 7,137 | (633 | ) | (633 | ) | - | |||||||||||||
Minority
interest in operating partnership
|
(2,285 | ) | - | 2,285 | 186 | 2,099 | ||||||||||||||
Income
from continuing operations
|
5,485 | 7,137 | 1,652 | (447 | ) | 2,099 | ||||||||||||||
Loss
from discontinued operations
|
(457 | ) | (648 | ) | (191 | ) | - | (191 | ) | |||||||||||
Gain
on disposition of property
|
21,071 | 29,849 | 8,778 | - | 8,778 | |||||||||||||||
Discontinued
operations
|
20,614 | 29,201 | 8,587 | - | 8,587 | |||||||||||||||
Net
income
|
26,099 | 36,338 | 10,239 | (447 | ) | 10,686 | ||||||||||||||
Net
income attributable to noncontrolling interests
|
- | (10,686 | ) | (10,686 | ) | - | (10,686 | ) | ||||||||||||
Net
income attributable to common shareholders
|
26,099 | 25,652 | (447 | ) | (447 | ) | - | |||||||||||||
Basic
earnings per share
|
0.81 | 0.80 | (0.01 | ) | (0.01 | ) | - | |||||||||||||
Diluted
earnings per share
|
0.80 | 0.79 | (0.01 | ) | (0.01 | ) | - |
|
¹
|
Adjusted
for discontinued operations in accordance with SFAS No. 144, Accounting for the Impairment
or Disposal of Long-Lived Assets (“SFAS 144”), as discussed in
Note 9.
|
3.
|
Recently Adopted and
Recently Issued Accounting Standards
(continued)
|
Consolidated
Statement of Equity:
|
December 31, 2008
|
|||||||||||||||||||
Originally
Reported
|
As
Adjusted
|
Effect
of Change
|
Impact
of FSP APB 14-1
|
Impact
of
SFAS
160
|
||||||||||||||||
Additional
paid-in-capital
|
$ | 847,576 | $ | 857,415 | $ | 9,839 | $ | 9,839 | $ | - | ||||||||||
Distributions
in excess of accumulated earnings
|
(201,222 | ) | (206,961 | ) | (5,739 | ) | (5,739 | ) | - | |||||||||||
Noncontrolling
interests
|
- | 260,754 | 260,754 | 1,618 | 259,136 |
Consolidated
Statement of Cash Flows:
|
Three Months Ended March 31,
2008
|
|||||||||||||||||||
Originally
Reported
|
As
Adjusted
|
Effect
of Change
|
Impact
of FSP APB 14-1
|
Impact
of
SFAS
160
|
||||||||||||||||
Net
income
|
$ | 26,099 | $ | 36,338 | $ | 10,239 | $ | (447 | ) | $ | 10,686 | |||||||||
Income
allocated to minority interest
|
10,872 | - | (10,872 | ) | (186 | ) | (10,686 | ) | ||||||||||||
Depreciation
and amortization
|
29,369 | 29,354 | (15 | ) | (15 | ) | - | |||||||||||||
Amortization
of debt discount
|
- | 648 | 648 | 648 | - | |||||||||||||||
Net
cash provided by operating activities
|
38,701 | 38,701 | - | - | - |
3.
|
Recently Adopted and
Recently Issued Accounting Standards
(continued)
|
4.
|
Earnings Per Common
Share
|
Three Months
|
||||||||
2009
|
2008
|
|||||||
Numerator:
|
||||||||
Income
from continuing operations
|
$ | 5,839 | $ | 7,137 | ||||
Less:
Income from continuing operations attributable to noncontrolling
interests
|
(1,612 | ) | (2,099 | ) | ||||
Income
from continuing operations attributable to common
shareholders
|
$ | 4,227 | $ | 5,038 | ||||
Discontinued
operations
|
$ | 9,220 | $ | 29,201 | ||||
Less:
Discontinued operations attributable to noncontrolling
interests
|
(2,545 | ) | (8,587 | ) | ||||
Discontinued
operations attributable to common shareholders
|
$ | 6,675 | $ | 20,614 | ||||
Denominator:
|
||||||||
Basic
weighted average number of common shares outstanding
|
32,668,662 | 32,211,720 | ||||||
Effect
of dilutive stock options
|
20,257 | 328,213 | ||||||
Effect
of phantom and restricted shares
|
10,845 | 49,719 | ||||||
Diluted
weighted average number of common shares outstanding
|
32,699,764 | 32,589,652 | ||||||
Earnings
per common share:
|
||||||||
Basic
earnings per share:
|
||||||||
Income
from continuing operations
|
$ | 0.13 | $ | 0.16 | ||||
Discontinued
operations
|
0.20 | 0.64 | ||||||
Net
income attributable to common shareholders
|
$ | 0.33 | $ | 0.80 | ||||
Diluted
earnings per share:
|
||||||||
Income
from continuing operations
|
$ | 0.13 | $ | 0.16 | ||||
Discontinued
operations
|
0.20 | 0.63 | ||||||
Net
income attributable to common shareholders
|
$ | 0.33 | $ | 0.79 |
5.
|
Variable Interest
Entities
|
6. |
|
Interest
Capitalized
|
7.
|
Line of
Credit
|
8.
|
Segment
Reporting
|
Three Months
|
||||||||
2009
|
2008
|
|||||||
Revenues
|
||||||||
Apartments
owned
|
||||||||
Core
properties
|
$ | 124,621 | $ | 122,667 | ||||
Non-core
properties
|
4,583 | 1,982 | ||||||
Reconciling
items
|
286 | 312 | ||||||
Total
revenues
|
$ | 129,490 | $ | 124,961 | ||||
Net operating income
|
||||||||
Apartments
owned
|
||||||||
Core
properties
|
$ | 69,950 | $ | 69,404 | ||||
Non-core
properties
|
2,091 | 1,130 | ||||||
Reconciling
items
|
286 | 312 | ||||||
Net
operating income, including reconciling items
|
72,327 | 70,846 | ||||||
General
and administrative expenses
|
(5,888 | ) | (6,220 | ) | ||||
Interest
expense
|
(30,553 | ) | (30,016 | ) | ||||
Depreciation
and amortization
|
(30,047 | ) | (27,473 | ) | ||||
Income
from continuing operations
|
$ | 5,839 | $ | 7,137 |
Assets
|
2009
|
2008
|
||||||
Apartments
owned
|
||||||||
Core
properties
|
$ | 2,911,915 | $ | 2,923,265 | ||||
Non-core
properties
|
271,483 | 312,155 | ||||||
Reconciling
items
|
76,469 | 81,674 | ||||||
Total assets
|
$ | 3,259,867 | $ | 3,317,094 |
Three Months
|
||||||||
2009
|
2008
|
|||||||
Revenues:
|
||||||||
Rental
income
|
$ | 713 | $ | 4,862 | ||||
Property
other income
|
22 | 483 | ||||||
Total
revenues
|
735 | 5,345 | ||||||
Expenses:
|
||||||||
Operating
and maintenance
|
526 | 2,785 | ||||||
Interest
expense, including prepayment penalties
|
4,497 | 2,136 | ||||||
Depreciation
and amortization
|
- | 1,072 | ||||||
Total
expenses
|
5,023 | 5,993 | ||||||
Loss
from discontinued operations
|
$ | (4,288 | ) | $ | (648 | ) |
10.
|
Commitments and
Contingencies
|
|
Contingencies
|
|
Guarantees
|
11.
|
Subsequent
Events
|
For
the three months ended March 31,
|
||||||||||||||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||||||||||||||
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
|
$ | - | $ | - | $ | 521 | $ | 14 | $ | 521 | $ | 14 | $ | 657 | $ | 19 | ||||||||||||||||
Major
building improvements
|
1,139 | 31 | 1,575 | 44 | 2,714 | 75 | 2,532 | 72 | ||||||||||||||||||||||||
Roof
replacements
|
298 | 8 | 86 | 3 | 384 | 11 | 449 | 13 | ||||||||||||||||||||||||
Site
improvements
|
390 | 11 | - | - | 390 | 11 | 781 | 22 | ||||||||||||||||||||||||
Apartment
upgrades
|
1,405 | 39 | 5,099 | 141 | 6,504 | 180 | 4,777 | 135 | ||||||||||||||||||||||||
Appliances
|
1,180 | 33 | 26 | - | 1,206 | 33 | 1,040 | 29 | ||||||||||||||||||||||||
Carpeting/flooring
|
1,999 | 55 | 599 | 17 | 2,598 | 72 | 2,288 | 65 | ||||||||||||||||||||||||
HVAC/mechanicals
|
642 | 18 | 1,289 | 35 | 1,931 | 53 | 2,414 | 68 | ||||||||||||||||||||||||
Miscellaneous
|
181 | 5 | 509 | 14 | 690 | 19 | 596 | 17 | ||||||||||||||||||||||||
Totals
|
$ | 7,234 | $ | 200 | $ | 9,704 | $ | 268 | $ | 16,938 | $ | 468 | $ | 15,534 | $ | 440 |
(a)
|
Calculated
using the weighted average number of units owned, including 35,360 core
units, and 2008 acquisition units of 813 for the three months ended March
31, 2009; and 35,360 core units for the three months ended March 31,
2008.
|
For
the three months ended March 31,
|
||||||||||||||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||||||||||||||
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
|
$ | 7,071 | $ | 200 | $ | 9,425 | $ | 267 | $ | 16,496 | $ | 467 | $ | 15,534 | $ | 440 | ||||||||||||||||
2008
Acquisition Communities
|
163 | 200 | 279 | 343 | 442 | 543 | - | - | ||||||||||||||||||||||||
Sub-total
|
7,234 | 200 | 9,704 | 268 | 16,938 | 468 | 15,534 | 440 | ||||||||||||||||||||||||
2009
Disposed Communities
|
49 | 200 | 126 | 509 | 175 | 709 | 544 | 734 | ||||||||||||||||||||||||
2008
Disposed Communities
|
- | - | - | - | - | - | 366 | 426 | ||||||||||||||||||||||||
Corporate
office expenditures(1)
|
- | - | - | - | 310 | - | 1,071 | - | ||||||||||||||||||||||||
Totals
|
$ | 7,283 | $ | 200 | $ | 9,830 | $ | 270 | $ | 17,423 | $ | 470 | $ | 17,515 | $ | 445 |
(1)
|
No
distinction is made between recurring and non-recurring expenditures for
corporate office. Corporate office expenditures include
principally computer hardware, software, office furniture, fixtures and
leasehold improvements.
|
(b)
|
Calculated
using the weighted average number of units owned, including 35,360 core
units, 2008 acquisition units of 813 and 2009 disposed units of 247 for
the three months ended March 31, 2009; and 35,360 core units, 2009
disposed units of 741 and 2008 disposed units of 859 for the three months
ended March 31, 2008.
|
Three Months
|
||||||||||||||||
2009
|
2008
|
$ Change
|
% Change
|
|||||||||||||
Rent
|
$ | 112,384 | $ | 111,282 | $ | 1,102 | 1.0 | % | ||||||||
Utility
recovery revenue
|
7,334 | 6,600 | 734 | 11.1 | % | |||||||||||
Rent
including recoveries
|
119,718 | 117,882 | 1,836 | 1.6 | % | |||||||||||
Property
other income
|
4,903 | 4,785 | 118 | 2.5 | % | |||||||||||
Total
revenue
|
124,621 | 122,667 | 1,954 | 1.6 | % | |||||||||||
Operating
and maintenance
|
(54,671 | ) | (53,263 | ) | (1,408 | ) | (2.6 | %) | ||||||||
Net
operating income
|
$ | 69,950 | $ | 69,404 | $ | 546 | 0.8 | % |
Three Months
|
||||||||||||||||
2009
|
2008
|
$ Change
|
% Change
|
|||||||||||||
Rent
|
$ | 116,760 | $ | 112,937 | $ | 3,823 | 3.4 | % | ||||||||
Utility
recovery revenue
|
7,429 | 6,606 | 823 | 12.5 | % | |||||||||||
Rent
including recoveries
|
124,189 | 119,543 | 4,646 | 3.9 | % | |||||||||||
Property
other income
|
5,015 | 5,106 | (91 | ) | (1.8 | %) | ||||||||||
Total
revenue
|
129,204 | 124,649 | 4,555 | 3.7 | % | |||||||||||
Operating
and maintenance
|
(57,163 | ) | (54,115 | ) | (3,048 | ) | (5.6 | %) | ||||||||
Net
operating income
|
$ | 72,041 | $ | 70,534 | $ | 1,507 | 2.1 | % |
Three Months
|
||||||||
2009
|
2008
|
|||||||
Net
income attributable to common shareholders
|
$ | 10,902 | $ | 25,652 | ||||
Real
property depreciation and amortization
|
29,420 | 27,950 | ||||||
Noncontrolling
interests
|
4,157 | 10,686 | ||||||
Gain
on disposition of property
|
(13,508 | ) | (29,849 | ) | ||||
FFO
– Basic and Diluted, as defined by NAREIT
|
30,971 | 34,439 | ||||||
Loss
from early extinguishment of debt in connection with sale of real
estate
|
4,927 | 1,384 | ||||||
FFO
– Basic and Diluted, as adjusted by the Company
|
$ | 35,898 | $ | 35,823 | ||||
Weighted
average common shares/units outstanding (1):
|
||||||||
Basic
|
45,180.01 | 45,650.92 | ||||||
Diluted
|
45,211.11 | 46,028.85 |
(1)
|
Basic
includes common stock outstanding plus UPREIT Units which can be converted
into shares of common stock. Diluted includes additional common
stock equivalents.
|
ITEM
2.
|
UNREGISTERED SALES OF EQUITY SECURITIES; USE OF PROCEEDS FROM
REGISTERED SECURITIES
|
Maximum
|
||||||||||||||||
Total
|
Average
|
Total
shares/units
|
shares/units
|
|||||||||||||
shares/units
|
price
per
|
purchased
as part of
|
available
under
|
|||||||||||||
Period
|
purchased(1)
|
share/unit
|
Company Program
|
Company Program
|
||||||||||||
Balance
January 1, 2009:
|
2,291,160 | |||||||||||||||
January
2009
|
2,295 | $ | 35.23 | - | 2,291,160 | |||||||||||
February
2009
|
17,587 | 27.45 | - | 2,291,160 | ||||||||||||
March
2009
|
2,968 | 28.10 | - | 2,291,160 | ||||||||||||
Total
First Quarter 2009
|
22,850 | $ | 28.32 | - | 2,291,160 |
(1)
|
During
the three months ended March 31, 2009, the Company repurchased 22,850
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.
|
ITEM
4.
|
SUBMISSION OF MATTER TO A VOTE OF SECURITY
HOLDERS
|
Director Name
|
Shares For
|
Shares Withheld
|
||||||
Stephen
R. Blank
|
28,711,612 | 310,412 | ||||||
Josh
E. Fidler
|
28,089,850 | 932,174 | ||||||
Alan
L. Gosule
|
28,512,704 | 509,320 | ||||||
Leonard
F. Helbig, III
|
28,511,832 | 510,192 | ||||||
Nelson
B. Leenhouts
|
28,090,583 | 931,441 | ||||||
Norman
P. Leenhouts
|
28,084,091 | 937,933 | ||||||
Edward
J. Pettinella
|
28,523,866 | 498,158 | ||||||
Clifford
W. Smith, Jr.
|
28,547,596 | 474,428 | ||||||
Paul
L. Smith
|
28,539,326 | 482,698 | ||||||
Amy
L. Tait
|
27,603,893 | 1,418,131 |
Shares
Voted For:
|
28,538,728
|
|
Shares
Voted Against:
|
441,635
|
|
Shares
Abstaining:
|
41,661
|
ITEM
6.
|
Exhibit
10.1
|
Changes
to Compensation Arrangements for Named Executive
Officers*
|
Exhibit
10.2
|
Equity
Grant for Non-Employee Directors*
|
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**
|
HOME PROPERTIES, INC.
|
|
(Registrant)
|
|
Date: May 8,
2009
|
|
By: /s/ Edward J.
Pettinella
|
|
Edward J.
Pettinella
|
|
President and Chief Executive
Officer
|
|
Date: May 8,
2009
|
|
By: /s/ David P.
Gardner
|
|
David P.
Gardner
|
|
Executive Vice President
and
|
|
Chief Financial
Officer
|