CLEVELAND, June 6 /PRNewswire-FirstCall/ -- Associated Estates Realty
Corporation (NYSE: AEC) today reaffirmed its FFO forecast of $0.98 to $1.02
per share for the year 2006, which excludes the effect of defeasance costs
associated with the prepayment of debt. A reconciliation of expected net
income applicable to common shares to FFO per share is as follows:
Expected net income $0.92 to $0.96
Expected real estate depreciation and amortization 1.84
Expected adjustments to unconsolidated joint ventures 0.06
Expected defeasance costs on secured debt 1.35
Expected gains on disposition of properties (3.19)
Expected FFO excluding defeasance costs $0.98 to $1.02
The Company expects to report results for the second quarter ended June
30, 2006, on Thursday, July 27. A conference call to discuss results is
planned for Thursday, July 27. Details regarding the conference call will
be published in early July.
Safe Harbor Statement
This news release contains forward-looking statements based on current
judgments and knowledge of management, which are subject to certain risks,
trends and uncertainties that could cause actual results to vary from those
projected, including but not limited to, expectations regarding the
Company's 2006 performance, which are based on certain assumptions.
Accordingly, readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date of this news
release. These forward-looking statements are intended to be covered by the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. The words "expects," "projects," "believes," "plans," "anticipates,"
and similar expressions are intended to identify forward-looking
statements. Investors are cautioned that the Company's forward-looking
statements involve risks and uncertainty, that could cause actual results
to differ from estimates or projections contained in these forward-looking
statements, including without limitation the following: changes in the
economic climate in the markets in which the Company owns and manages
properties, including interest rates, the overall level of economic
activity, the availability of consumer credit and mortgage financing,
unemployment rates and other factors; risks of a lessening of demand for
the multifamily units owned or managed by the Company; competition from
other available multifamily units and changes in market rental rates;
increases in property and liability insurance costs; changes in real estate
taxes and other operating expenses (e.g., cleaning, utilities, repair and
maintenance costs, insurance and administrative costs, security,
landscaping, staffing and other general costs); changes in government
regulations affecting properties the rents of which are subsidized and
certain aspects of which are regulated by the United States Department of
Housing and Urban Development ("HUD") and other properties owned by the
Company; changes in or termination of contracts relating to third party
management and advisory business; inability to renew current contracts with
HUD for rent-subsidized properties at existing rents; weather and other
conditions that might adversely affect operating expenses; expenditures
that cannot be anticipated such as utility rate and usage increases,
unanticipated repairs, and real estate tax valuation reassessments or
millage rate increases; inability of the Company to control operating
expenses or achieve increases in revenues; the results of litigation filed
or to be filed against the Company; changes in tax legislation; risks
related to the Company's joint ventures; risks of personal injury claims
and property damage related to mold claims because of diminished insurance
coverage; catastrophic property damage losses that are not covered by the
Company's insurance; risks associated with property acquisitions such as
environmental liability, among others; changes in market conditions that
may limit or prevent the Company from acquiring or selling properties; and
risks related to the perception of residents and prospective residents as
to the attractiveness, convenience and safety of the Company's properties
or the neighborhoods in which they are located.
Company Profile
Associated Estates Realty Corporation, one of the largest multifamily
property managers in the United States, is a real estate investment trust
("REIT"), headquartered in Richmond Heights, Ohio, a suburb of Cleveland.
The Company directly or indirectly owns, manages or is a joint venture
partner in 107 apartment communities containing a total of 22,213 units
located in 11 states.
For more information, please contact: Barbara E. Hasenstab, Vice
President of Investor Relations and Corporate Communications, by telephone
at 216-797-8798 or e-mail at IR@aecrealty.com. This press release and other
corporate information are available through the Company's web site on the
Internet at http://www.aecrealty.com.
SOURCE Associated Estates Realty Corporation
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Related links:
http://www.aecrealty.com/
CONTACT:
Barbara E. Hasenstab, Vice President of
Investor Relations and Corporate Communications of Associated
Estates Realty Corporation, +1-216-797-8798, or IR@aecrealty.com
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