AIR Reports First Quarter 2021 Results

Rhea-AI Summary

Apartment Income REIT Corp (AIRC) reported strong first quarter results for 2021, with FFO per share at $0.50, exceeding expectations. Occupancy rose to 95.5%, with projections for year-end levels near pre-COVID heights. Significant recovery is noted in top markets, achieving 97% occupancy and rental rates 3% above pre-pandemic levels. The $342 million equity raise supports ongoing strategic goals, including reduced leverage and optimized operations. The financial outlook for 2021 predicts FFO per share between $1.96 and $2.06, reflecting positive momentum amid economic recovery.

Positive

• First quarter FFO per share of $0.50 exceeded expectations by $0.01.
• Same Store revenue grew sequentially by 1.5%.
• Occupancy improved to 95.5%, with expectations to reach approximately 97% by year-end.
• Equity issuance of $342 million supports business strategy and reduces leverage.

Negative

• None.

Apartment Income REIT Corp (“AIR”) (NYSE: AIRC) announced today first quarter results for 2021.

Chief Executive Officer Terry Considine comments: “2021 is off to a solid start with first quarter operating results coming in ahead of expectations. The combination of AIR’s best-in-class operating platform and a recovering economy allowed us to rebuild occupancy and raise rents while maintaining our focus on customer selection and customer quality.”

“Our five healthiest markets, representing half of AIR’s revenue, have fully recovered from the disruptions of 2020, as evidenced by almost 97% occupancy and asking rents that are 3% above their pre-COVID peaks. In our more challenged markets, Los Angeles, Philadelphia, and the Bay Area, we see positive momentum with improving occupancy, leasing pace, and pricing.”

“We approach peak-leasing season with increased optimism that the worst of COVID is behind us and with the expectation that the economic recovery will carry on into 2022.”

“We continue to execute on the plan and promise of AIR to be the best way to own multi-family properties. Many of our primary objectives are complete, including best in class property operations and G&A relative to gross asset value that is the lowest in the sector. We have made substantial progress on other objectives, such as lowering leverage and improving the cost of equity capital. The recent issuance of $342 million in equity was a strong validation of AIR’s business strategy.”

Chief Financial Officer Paul Beldin adds: “First quarter FFO per share of $0.50 was $0.01 above the high-end of our guidance range due to higher property NOI and lower offsite and interest costs. In operations, Same Store revenue grew sequentially by 1.5% and our peer leading margins improved by 80 basis points.”

“Our leading indicators point to a building recovery; blended signed lease rates turned positive in March, a thousand basis point improvement from September. Occupancy improved sequentially by 110 basis points to 95.5%, and we remain on track to end 2021 at peak pre-COVID levels of approximately 97%.”

“Based on our strong operating results and our expectations for continued recovery, and considering both the dilution to-be-expected from equity issuance and property sales whose proceeds are used to reduce leverage, we expect 2021 FFO per share to be between $1.96 and $2.06, just as we communicated in our April 14 release.”

Financial Results: First Quarter Pro Forma FFO Per Share

		FIRST QUARTER
(all items per common share - diluted)		2021
Net income		$	0.56

FAQ

What were the first quarter results for AIRC in 2021?

AIRC reported FFO per share of $0.50 for the first quarter of 2021, exceeding expectations.

What is the current occupancy rate for AIRC?

The occupancy rate for AIRC is currently 95.5%.

How much equity did AIRC raise recently?

AIRC raised $342 million in equity to support its business strategy.

What is the projected FFO per share for AIRC in 2021?

For 2021, AIRC projects FFO per share between $1.96 and $2.06.

Which markets are performing best for AIRC?

AIRC's five healthiest markets have fully recovered, achieving nearly 97% occupancy and rent rates 3% above pre-COVID levels.