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Apartment Update for 12-29-06

Hospitality Update for 12-29-06


Monthly Rating Changes

    On 12-14 Lehman Brothers Upgraded ESS from Underweight to Equal-weight, Upgraded ASN from Underweight to Equal-weight and Downgraded PPS from Equal-weight to Underweight.

    On 11-20 BMO Capital Markets Upgraded HME from Underperform to Market Perform. On 11-22 Citigroup Initiated coverage of EDR at Sell and Initiated coverage of ESS at Hold. On 11-21 HST was cut to neutral at Merrill Lynch from buy, citing valuation. "We remain very optimistic with respect to Host's outlook owing to the 27 acquired Starwood hotels earlier this year, the relatively low leverage on the balance sheet and increasing common dividends," Merrill Lynch said.
    On 11-27 RBC Capital Downgraded HME from Sector Perform to Underperform and Upgraded UDR from Underperform to Sector Perform. On 11-30 RBC Capital Upgraded EQR from Underperform to Sector Perform.


Dividend Changes


Equity Residential, Highland & Innkeepers Increases Dividends     Businesswire 12-12 / PRNewswire 12-14
    EQR announced that the company declared dividends on its common and preferred shares. The company increased its common share dividend to $1.85 per share annually, an increase of 4.5%. In addition, the company announced that it will recognize a charge to fourth quarter earnings as a result of the write down of the carrying value of its corporate housing business.
    On 12-12 Highland Hospitality Corp., a lodging real estate investment trust, said Tuesday its board approved an increase of 3 cents, or 16 percent, in its quarterly dividend, to 22 cents.
    On 12-14 Innkeepers USA Trust declared a common share dividend of $0.23 per share for the 2006 fourth quarter, a 15% increase from the previous quarterly dividend of $0.20. Based on the closing price of the common shares at the close of business on December 13, the annualized dividend represents a yield of approximately 5.8%.


News Update

On 12-19 Hospitality Properties Trust priced its offering of 12 million shares at $47.51 per share. The company said it expects the settlement of the sale to take place on Dec. 22. Hospitality Properties plans to use the proceeds for its acquisition of TravelCenters of America Inc. and for general corporate purposes. The stock offer includes a 30 day overallotment option to buy another 1.8 million shares. Shares fell $1.66, or 3.4%.


BRE Properties Issues 2007 Earnings Estimates     PRNewswire 12-19
    BRE Properties expects FFO per share for 2007 to be reported in a range of $2.55 to $2.70. The company's current FFO estimate for 2006, which ranges $2.64 to $2.67, includes nonroutine income items relating to litigation settlements and gains realized from the sale of land parcels, which total $22.9 million or $0.43 per share. Adjusting for the nonroutine income items, the company expects 2007 estimated FFO per share growth of 18% at the mid-point of the ranges. Management expects same-store revenue growth to range 6.0% to 7.0% during 2007.
Property-level operating expenses for the same-store portfolio are expected to increase in a range of 2.0% to 3.0%, as compared to 2006. As a result of the same-store revenue and expense expectations, management believes SSNOI growth for 2007 will range 7.5% to 9.0%. BRE has three California development properties that will commence unit delivery and lease-up during 2007. BRE directly owns and operates 79 apartment communities totaling 22,166 units in California, Arizona and Washington. The company currently has 10 other properties in various stages of development and construction, totaling 2,462 units, and joint venture interests in nine additional apartment communities, totaling 2,672 units.


Education Realty Trims Earnings Outlook     AP 12-21
    Education Realty Trust anticipates funds from operations earnings in a range of 82 cents per share to 84 cents per share, compared to guidance from Nov. 6 in a range of 87 cents per share to 92 cents per share. EDR forecast revenue of $116.8 million to $122.7 million. EDR pinned the shortfall on lower revenue in the third quarter due to a change in lease ending dates, slower-than-expected return on certain development fee revenues, the loss of projected third-party management revenue following the sale of a property early in the fourth quarter, and higher utility costs in the second half of the year.


NOTE: Although the tables above are checked and double-checked for accuracy, and may at times be 100% accurate - do NOT count on that. Please confirm through your own research any numbers on which you are to make a buy, sell or hold decision. Most sites giving this kind of data would say that it's information is for entertainment purposes only. I will not presume that you are that masochistic. And even accurately replicated and freshly retrieved FFO numbers are often stale.


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