Total revenues for the first quarter of 2001 were $51.7 million, an increase of 5.9% in the first quarter of 2000. And same store net operating income for the first quarter increased by 4.5% to $31.7 million.
Rent increases averaged 4.1% in the first quarter of 2001, compared to 4.2% in 2000. The company also began using a state-of-the-art computer software system that allows it to access, analyze and share information on a real-time basis.
The quarter's results were hurt by unusually high weather-related repair and maintenance, increasing utility costs in several parts of the country and increased property insurance costs, which resulted in higher-than-anticipated expenses, decreasing FFO per share by approximately $0.02 per share.
"While the first quarter of 2001 did not fully meet our expectations, the fundamentals of our business remain strong," says Chateau chief executive officer Gary McDaniel. "Repossessions are decreasing, we have good activity in our development and expansion portfolio, rental increases are in line with our expectations, and acquisition activity seems to be improving. We continue to feel confident that our efforts in this area will bring positive results to the company into the future. In short, even with these quarter-specific issues, we expect 2001 to be an excellent year and are looking toward FFO per share growth in the 7% to 8% range."
Chateau also recently completed the implementation of an enterprise-wide software system. This state-of-the-art technology enables all community, regional, divisional and corporate office personnel to access, analyze and share information on a real-time basis.
Chateau used the software to perform a detailed review and analysis of each resident account. The review led Chateau to recognize write-offs of accounts receivable in the amount of approximately $650,000 or $0.02 per share.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
