Citigroup Lowers FFO Estimates for Associated Estates Realty

Strategic Insights -

Citigroup Inc. has lowered its 2010 Fund From Operations (FFO) estimate for Associated Estates Realty Corp. from $0.89 to $0.84, citing the company's recent share issuance and plans to utilize the proceeds for acquisitions, debt repayment, and corporate purposes. This development has triggered an uptrend alert for Associated Estates Realty, which is currently trading above its 200-day moving average of $13.22. The company's share price has seen notable movements, with its 50-day moving average falling 0.03% and its 200-day MA rising 0.57% over the last five trading sessions.

Key Takeaways:

  • Citigroup has lowered its 2010 FFO estimate for Associated Estates Realty Corp. from $0.89 to $0.84.
  • The reduced estimate is attributed to the company's recent issuance of 9.2 million shares at $13.60, generating $119.6 million in net proceeds.
  • Associated Estates Realty plans to use the funds to finance acquisitions, repay debt, and support corporate purposes.
  • The company operates as a self-administered and self-managed real estate investment trust, specializing in multifamily property management and development.
  • SmarTrend currently has Associated Estates Realty in an uptrend and is monitoring the company's developments.
  • The company owns or has joint venture partnerships in multifamily properties across Indiana, Ohio, Michigan, and Western Pennsylvania.

Statistics:

  • Citigroup's revised 2010 FFO estimate for Associated Estates Realty Corp.: $0.84.
  • Original 2010 FFO estimate for Associated Estates Realty Corp.: $0.89.
  • Citigroup's revised 2011 FFO estimate for Associated Estates Realty Corp.: $0.98.
  • Original 2011 FFO estimate for Associated Estates Realty Corp.: $1.02.
  • 200-day moving average for Associated Estates Realty as of the last trading session: $13.22.
  • 50-day moving average for Associated Estates Realty as of the last trading session: $13.93.
  • Associated Estates Realty's net proceeds from the issuance of 9.2 million shares: $119.6 million.
  • Price per share at the time of issuance: $13.60.

Sources:

  • SmarTrend News Watch via COMTEX
  • C, NYSE: Citigroup Inc. Oct 18, 2010
  • TradeTheTrend.com
  • Comtex News Network, Inc. 2010
  • SmarTrend.com