HOUSTON-Based on Q1 2013 earnings, AmREIT reiterated its 2013 projected guidance, forecasting its core funds from operations at between $1.02 and $1.07 per share, and its funds from operations ranging from $0.93 to $0.98.
During Q1, the REIT's core FFO available to common stockholders was $4.3 million ($0.27 per share), compared to $3.6 million ($0.31 per share) for the comparable period in 2012. Meanwhile, FFO available to common stockholders was $4.1 million ($0.26 per share) compared to $3.6 million ($0.31 per share) year over year. The 2013 FFO includes $164,000 in acquisition costs related to MacArthur Park joint venture with Goldman Sachs.
That joint venture was announced on March 26, and involved the acquisition of AmREIT's MacArthur Park and pads shoppiong centers in Irving, TX, along with the neighboring MacArthur Park Phase I shopping center from a third party. The Venture is a 70/30 joint venture whereby Goldman Sachs contributed cash for a 70% interest in the joint venture and AmREIT retained a 30% interest. The Venture placed mortgage financing on the entire combined property of approximately $43.9 million.
At closing, AmREIT received net cash proceeds of approximately $35.6 million, which were used to repay borrowings under its unsecured credit facility. AmREIT will continue to manage and lease MacArthur Park on behalf of the joint venture and will retain a right of first offer to acquire the project in the future after a lock-out period.
Other AmREIT earnings highlights during Q1 included:
- Net income at $8.4 million, or $0.53 per share, compared to $1.3 million, or $0.11 per share, for the same period in 2012. Included in net income for the 2013 period was a $7.7 million gain on sale related to the sale of MacArthur Park and Pads into the joint venture with Goldman Sachs.
- Same-store net operating income increased 1.3% over the prior year period.
- Portfolio occupancy as of March 31 was 96.5%, a decrease of approximately 20 basis points compared to portfolio occupancy of 96.7% as of December 31, 2012.
- On a leased basis (executed leases but where rent has not yet commenced), the portfolio was 97.2% leased as of March 31, with anticipated rent commencement during the second quarter.
- During the first quarter of 2013, AmREIT signed 14 leases for 28,201 square feet of gross leasable area, including both new and renewal leases, and cash leasing spreads (i.e. new leasing rate per square foot compared to the expiring leasing rate per square foot) increased 6.7% for renewals and increased 41.4% for new comparable leases.
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