Earnings per share of real estate investment trusts (REITs) and other publicly traded real estate companies posted gains in the second quarter of 2002 when compared to the same period last year, according to data assembled by the National Association of Real Estate Investment Trusts® (NAREIT).
Earnings are measured by net income per share as reported under generally accepted accounting principles (GAAP). This measure, commonly known as 'bottom-line' GAAP net income, includes extraordinary items, results of discontinued operations and cumulative effects of changes in accounting principles (all defined by GAAP).
Net income per share for all reporting equity REITs increased 21.9 percent on average in the second quarter when compared with the same period last year. Net income per share growth for all equity REITs and other non-REIT publicly traded real estate companies combined was 22.5 percent on average in the second quarter.
Complete second quarter results are based on data for 128 publicly traded real estate companies with a combined equity market capitalization of $180.7 billion. Average earnings per share growth rates are weighted by equity market capitalization.
Excluding the lodging/resorts sector, which was still affected by a slowdown in travel and tourism linked in part to September 11, net income per share for all equity REITs and other publicly traded real estate companies combined increased 24.8 percent on average in the second quarter.
'On balance, net income per share growth in the second quarter was encouraging, although a good bit of the strength owed to gains on property sales in the retail sector,' said Michael R. Grupe, NAREIT Senior Vice President for Research and Investment Affairs. 'Nevertheless, pockets of weakness are evident in some sectors, reflecting the tepid pace of economic recovery.'
Funds from operations (FFO) per share for all reporting equity REITs edged down 0.3 on average in the second quarter 2002 when compared to the year earlier period. When lodging/resort companies are removed, FFO per share advanced 1.1 percent.
Complete second quarter FFO results are based on data for 122 publicly traded companies with a combined equity market capitalization of $158.8 billion. Average FFO per share growth rates are weighted by equity market capitalization.
Approximately 65 percent of the companies tracked by industry analysts met or exceeded their consensus FFO per share estimates for the second quarter. Fifty-nine percent of the companies exceeded their expected level of FFO per share, while another 5.9 percent of the companies met their consensus estimates.
The National Association of Real Estate Investment Trusts® (NAREIT) is the national trade association for REITs and publicly traded real estate companies. Members are real estate investment trusts (REITs) and other businesses that own, operate and finance income-producing real estate, as well as those firms and individuals who advise, study and service those businesses.
For more information please visit www.nareit.com or www.investinreits.com.
(source: National Association of Real Estate Investment Trusts)
