CLEVELAND, Sept. 18 /PRNewswire-FirstCall/ -- Associated Estates Realty
Corporation (NYSE: AEC) announced today the Company's intention to exit the
affordable housing business. The Company currently manages for third party
owners 30 Low Income Housing Tax Credit (LIHTC), Section 8 and Section 202
affordable properties totaling 4,816 units located in Ohio, Pennsylvania
and Florida and owns or partially owns 12 Section 8 affordable properties
("Company Owned").
All "Company Owned" affordable properties have been placed on the
market for sale. The owner of 23 of the 30 managed properties recently
notified the Company of its intent to self-manage those properties,
effective January 1, 2008. The Company plans to transition the remaining
third party managed properties over the next three to six months. The
Company will continue to operate and manage the "Company Owned" properties
pending the sale of those properties, which is expected to occur over the
next 12 to 18 months.
The Company expects to incur approximately $200,000 in severance costs
associated with the elimination of certain positions at its corporate
office. The Company said net fees from its affordable housing, third party
management segment is expected to contribute approximately $0.03 per share
of FFO for 2007. For 2008, the Company expects to identify cost savings to
offset the loss of the net fees.
Associated Estates Realty Corporation, based in Richmond Heights, Ohio,
is a real estate investment trust ("REIT") and is a member of the Russell
2000. For more information about the Company, please visit its website at
http://www.aecrealty.com.
For more information, please contact:
Michael Lawson
Vice President of Investor Relations
216-797-8798
mlawson@aecrealty.com
SOURCE Associated Estates Realty Corporation
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Related links:
http://www.aecrealty.com
CONTACT:
Michael Lawson, Vice President of Investor
Relations of Associated Estates Realty Corporation,
+1-216-797-8798, mlawson@aecrealty.com
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