Home Properties Inc. (HME, Financial) filed Annual Report for the period ended 2010-12-31.
Home Properties Inc. has a market cap of $2.1 billion; its shares were traded at around $55.93 with a P/E ratio of 18 and P/S ratio of 4.1. The dividend yield of Home Properties Inc. stocks is 4.1%. Home Properties Inc. had an annual average earning growth of 3.8% over the past 5 years.Hedge Fund Gurus that owns HME: Manning & Napier Advisors, Inc. Mutual Fund and Other Gurus that owns HME: Ken Heebner of Capital Growth Management LP.
In September 1997, Home Properties Trust (QRS) was formed as a Maryland real estate trust and as a qualified REIT subsidiary. The QRS is wholly owned by Home Properties I, LLC which is owned 100% by the Company. The QRS is a limited partner of the Operating Partnership and holds all of the Companys interest in the Operating Partnership, except for the 1% held directly by the Company as sole general partner.
During 2010, the Company acquired nine communities with a total of 2,614 units for an aggregate consideration of $339 million, or an average of approximately $129,734 per apartment unit. The weighted average expected first year capitalization rate for the acquired communities was 6.1%. Capitalization rate (cap rate) is defined as the rate of interest used to convert the first year expected net operating income (NOI) less a 3.0% management fee into a single present value. NOI is defined by the Company as rental income and property other income less operating and maintenance expenses. Five acquisitions were in suburbs of Baltimore; two were in suburban Washington, D.C.; and one each in the Chicago and Long Island regions.
On December 31, 2010, the Companys debt was approximately $2.6 billion and the debt-to-total market capitalization ratio was 48.9% based on the year-end closing price of the Companys common stock of $55.49. The weighted average interest rate on the Companys mortgage debt as of December 31, 2010 was 5.15% and the weighted average maturity was approximately six and one-half years. Debt maturities are staggered, ranging from March 2011, through June 2034. As of December 31, 2010, the Company had an unsecured line of credit facility from M&T Bank (acting as lead bank) of $175 million with $56.5 million outstanding on the line of credit. This line of credit was amended and extended in February 2011 as described below.
For 2008, job losses became the norm with the start of the recession throughout the country. The Companys markets still compared favorably for 2009 with job losses of 2.1% compared to 3.6% for the country. The Companys markets experienced similar results as the country as a whole in 2010 with job growth of 0.8%. In addition, the unemployment rate for the Companys markets of 7.4% continues to compare favorably to the country average of 9.1%. The Northern VA/DC market stands out for the Company as it experienced job growth of 1.9% for 2010, with one of the lowest unemployment rates of 5.7% at December 31, 2010. This market represents 26.7% of the total apartment unit count and produces 30.3% of the property NOI. These two favorable comparisons help explain why the Companys markets helped the Company outperform all of its public company multifamily peers for the second year in a row on a measurement of same store NOI in both 2009 and 2010. The information on the Market Demographics and Multifamily Supply and Demand tables on Pages 10 and 11 were compiled by the Company from the sources indicated on the tables. The methods used include estimates and, while the Company feels that the estimates are reasonable, there can be no assurance that the estimates are accurate. There can also be no assurance that the historical information included on the tables will be consistent with future trends.
New construction in the Companys markets is low relative to the existing multifamily housing stock and compared to other regions of the country. In 2010, Home Properties markets represented 28.0% of the total estimated existing U.S. multifamily housing stock, but only 18.2% of the countrys estimated new supply of multifamily housing units.
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Home Properties Inc. has a market cap of $2.1 billion; its shares were traded at around $55.93 with a P/E ratio of 18 and P/S ratio of 4.1. The dividend yield of Home Properties Inc. stocks is 4.1%. Home Properties Inc. had an annual average earning growth of 3.8% over the past 5 years.Hedge Fund Gurus that owns HME: Manning & Napier Advisors, Inc. Mutual Fund and Other Gurus that owns HME: Ken Heebner of Capital Growth Management LP.
Highlight of Business Operations:
The Company was formed in November 1993 as a Maryland corporation and is the general partner of the Operating Partnership. On December 31, 2010, it held a 77.1% partnership interest in the Operating Partnership comprised of: 1) a 1.0% interest as sole general partner; and 2) a 76.1% limited partner interest through its wholly owned subsidiary, Home Properties I, LLC, which owns 100% of Home Properties Trust, which is the limited partner. The holders of the remaining 22.9% of the UPREIT Units are certain individuals and entities who received UPREIT Units as consideration for their interests in entities owning apartment communities purchased by the Operating Partnership, including certain officers and Directors of the Company.In September 1997, Home Properties Trust (QRS) was formed as a Maryland real estate trust and as a qualified REIT subsidiary. The QRS is wholly owned by Home Properties I, LLC which is owned 100% by the Company. The QRS is a limited partner of the Operating Partnership and holds all of the Companys interest in the Operating Partnership, except for the 1% held directly by the Company as sole general partner.
During 2010, the Company acquired nine communities with a total of 2,614 units for an aggregate consideration of $339 million, or an average of approximately $129,734 per apartment unit. The weighted average expected first year capitalization rate for the acquired communities was 6.1%. Capitalization rate (cap rate) is defined as the rate of interest used to convert the first year expected net operating income (NOI) less a 3.0% management fee into a single present value. NOI is defined by the Company as rental income and property other income less operating and maintenance expenses. Five acquisitions were in suburbs of Baltimore; two were in suburban Washington, D.C.; and one each in the Chicago and Long Island regions.
On December 31, 2010, the Companys debt was approximately $2.6 billion and the debt-to-total market capitalization ratio was 48.9% based on the year-end closing price of the Companys common stock of $55.49. The weighted average interest rate on the Companys mortgage debt as of December 31, 2010 was 5.15% and the weighted average maturity was approximately six and one-half years. Debt maturities are staggered, ranging from March 2011, through June 2034. As of December 31, 2010, the Company had an unsecured line of credit facility from M&T Bank (acting as lead bank) of $175 million with $56.5 million outstanding on the line of credit. This line of credit was amended and extended in February 2011 as described below.
For 2008, job losses became the norm with the start of the recession throughout the country. The Companys markets still compared favorably for 2009 with job losses of 2.1% compared to 3.6% for the country. The Companys markets experienced similar results as the country as a whole in 2010 with job growth of 0.8%. In addition, the unemployment rate for the Companys markets of 7.4% continues to compare favorably to the country average of 9.1%. The Northern VA/DC market stands out for the Company as it experienced job growth of 1.9% for 2010, with one of the lowest unemployment rates of 5.7% at December 31, 2010. This market represents 26.7% of the total apartment unit count and produces 30.3% of the property NOI. These two favorable comparisons help explain why the Companys markets helped the Company outperform all of its public company multifamily peers for the second year in a row on a measurement of same store NOI in both 2009 and 2010. The information on the Market Demographics and Multifamily Supply and Demand tables on Pages 10 and 11 were compiled by the Company from the sources indicated on the tables. The methods used include estimates and, while the Company feels that the estimates are reasonable, there can be no assurance that the estimates are accurate. There can also be no assurance that the historical information included on the tables will be consistent with future trends.
New construction in the Companys markets is low relative to the existing multifamily housing stock and compared to other regions of the country. In 2010, Home Properties markets represented 28.0% of the total estimated existing U.S. multifamily housing stock, but only 18.2% of the countrys estimated new supply of multifamily housing units.
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