Home Properties Inc. (HME, Financial) filed Quarterly Report for the period ended 2010-09-30.
Home Properties Inc. has a market cap of $2.13 billion; its shares were traded at around $56.19 with a P/E ratio of 17.3 and P/S ratio of 4.1. The dividend yield of Home Properties Inc. stocks is 4.2%. Home Properties Inc. had an annual average earning growth of 3.8% over the past 5 years.HME is in the portfolios of Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors.
Cash used in investing activities was $279 million during 2010 compared to $45 million in 2009. The $234 million increase in investing between periods is primarily due to the $172 million used for acquisition communities in 2010 as compared to no acquisitions in 2009. The 2009 period received the benefit of $67 million proceeds from the sale of properties, while the 2010 period realized no property sales. Cash outflows for capital improvements were $66 million in 2010 compared to $58 million in 2009. The consistent outflow in both periods reflects managements strategy to continually reposition and perform selective rehabilitation in markets that are able to support rent increases. Cash outflows for additions to construction in progress were $36 million in 2010 as compared to $54 million in 2009. The lower spending on development in 2010 reflects the completion of one major project during 2010 compared to the active construction of two communities in 2009.
Net cash provided by financing activities totaled $168 million in 2010. Cash flows from the sale of common stock under the ATM offering of $108 million, net borrowing under our line of credit of $84 million, net proceeds from mortgage financing of $57 million and proceeds from stock option exercises of $8 million and were partially offset by distributions paid to stockholders and UPREIT Unitholders of $84 million. Net cash used in financing activities totaled $68 million for 2009, primarily as a result of net proceeds from mortgage financing of $27 million being more than offset by distributions paid to stockholders and UPREIT Unitholders of $91 million.
As of September 30, 2010, the Company had a $175 million unsecured line of credit agreement with M&T Bank, as administrative agent and lead bank, which expires August 31, 2011, with an optional one-year extension. The Company had $137 million outstanding under the credit facility on September 30, 2010. The line of credit agreement provides the ability to issue up to $20 million in letters of credit. While the issuance of letters of credit does not increase the borrowings outstanding under the line of credit, it does reduce the amount available. At September 30, 2010, the Company had outstanding letters of credit of $4.4 million and the amount available on the credit facility was $33.6 million.
In October 2006, the Company issued $200 million of exchangeable senior notes with a coupon rate of 4.125% (Senior Notes), which generated net proceeds of $195.8 million. The net proceeds were used to repurchase 933,000 shares of common stock for a total of $58 million, pay down $70 million on the line of credit, with the balance used for redemption of the Series F Preferred Shares and property acquisitions. During the fourth quarter of 2008, the Company repurchased $60 million of the Senior Notes for $45.4 million. The exchange terms and conditions are more fully described under Contractual Obligations and Other Commitments, below.
In October 2006, the Company issued $200 million of Senior Notes with a coupon rate of 4.125%. During 2008, the Company repurchased and retired $60 million principal amount of its Senior Notes and $140 million remain outstanding at September 30, 2010. The notes are exchangeable into cash equal to the principal amount of the notes and, at the Companys option, cash or common stock for the exchange value, to the extent that the market price of common stock exceeds the initial exchange price of $73.34 per share, subject to adjustment. The exchange price is adjusted for payments of dividends in excess of the reference dividend set in the indenture of $0.64 per share. The adjusted exchange price at September 30, 2010 was $72.87 per share. Upon an exchange of the notes, the Company will settle any amounts up to the principal amount of the notes in cash and the remaining exchange value, if any, will be settled, at the Companys option, in cash, common stock or a combination of both. The notes are not redeemable at the option of the Company for five years from their issue date, except to preserve the status of the Company as a REIT. Holders of the notes may require the Company to repurchase the notes upon the occurrence of certain designated events. In addition, prior to November 1, 2026, the holders may require the Company to repurchase the notes on November 1, 2011, 2016 and 2021. The notes will mature on November 1, 2026, unless previously redeemed, repurchased or exchanged in accordance with their terms prior to that date.
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Home Properties Inc. has a market cap of $2.13 billion; its shares were traded at around $56.19 with a P/E ratio of 17.3 and P/S ratio of 4.1. The dividend yield of Home Properties Inc. stocks is 4.2%. Home Properties Inc. had an annual average earning growth of 3.8% over the past 5 years.HME is in the portfolios of Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
The Companys net cash flow from operating activities was $110 million in 2010 and $113 million in 2009. The $3 million decrease was primarily due to increased usage of cash for rate-lock deposits on mortgage financings of $6 million included in other assets and $5 million higher funding of escrows included in cash held in escrows, partially offset by timing differences in cash disbursements between periods which generated $7 million higher cash flow.Cash used in investing activities was $279 million during 2010 compared to $45 million in 2009. The $234 million increase in investing between periods is primarily due to the $172 million used for acquisition communities in 2010 as compared to no acquisitions in 2009. The 2009 period received the benefit of $67 million proceeds from the sale of properties, while the 2010 period realized no property sales. Cash outflows for capital improvements were $66 million in 2010 compared to $58 million in 2009. The consistent outflow in both periods reflects managements strategy to continually reposition and perform selective rehabilitation in markets that are able to support rent increases. Cash outflows for additions to construction in progress were $36 million in 2010 as compared to $54 million in 2009. The lower spending on development in 2010 reflects the completion of one major project during 2010 compared to the active construction of two communities in 2009.
Net cash provided by financing activities totaled $168 million in 2010. Cash flows from the sale of common stock under the ATM offering of $108 million, net borrowing under our line of credit of $84 million, net proceeds from mortgage financing of $57 million and proceeds from stock option exercises of $8 million and were partially offset by distributions paid to stockholders and UPREIT Unitholders of $84 million. Net cash used in financing activities totaled $68 million for 2009, primarily as a result of net proceeds from mortgage financing of $27 million being more than offset by distributions paid to stockholders and UPREIT Unitholders of $91 million.
As of September 30, 2010, the Company had a $175 million unsecured line of credit agreement with M&T Bank, as administrative agent and lead bank, which expires August 31, 2011, with an optional one-year extension. The Company had $137 million outstanding under the credit facility on September 30, 2010. The line of credit agreement provides the ability to issue up to $20 million in letters of credit. While the issuance of letters of credit does not increase the borrowings outstanding under the line of credit, it does reduce the amount available. At September 30, 2010, the Company had outstanding letters of credit of $4.4 million and the amount available on the credit facility was $33.6 million.
In October 2006, the Company issued $200 million of exchangeable senior notes with a coupon rate of 4.125% (Senior Notes), which generated net proceeds of $195.8 million. The net proceeds were used to repurchase 933,000 shares of common stock for a total of $58 million, pay down $70 million on the line of credit, with the balance used for redemption of the Series F Preferred Shares and property acquisitions. During the fourth quarter of 2008, the Company repurchased $60 million of the Senior Notes for $45.4 million. The exchange terms and conditions are more fully described under Contractual Obligations and Other Commitments, below.
In October 2006, the Company issued $200 million of Senior Notes with a coupon rate of 4.125%. During 2008, the Company repurchased and retired $60 million principal amount of its Senior Notes and $140 million remain outstanding at September 30, 2010. The notes are exchangeable into cash equal to the principal amount of the notes and, at the Companys option, cash or common stock for the exchange value, to the extent that the market price of common stock exceeds the initial exchange price of $73.34 per share, subject to adjustment. The exchange price is adjusted for payments of dividends in excess of the reference dividend set in the indenture of $0.64 per share. The adjusted exchange price at September 30, 2010 was $72.87 per share. Upon an exchange of the notes, the Company will settle any amounts up to the principal amount of the notes in cash and the remaining exchange value, if any, will be settled, at the Companys option, in cash, common stock or a combination of both. The notes are not redeemable at the option of the Company for five years from their issue date, except to preserve the status of the Company as a REIT. Holders of the notes may require the Company to repurchase the notes upon the occurrence of certain designated events. In addition, prior to November 1, 2026, the holders may require the Company to repurchase the notes on November 1, 2011, 2016 and 2021. The notes will mature on November 1, 2026, unless previously redeemed, repurchased or exchanged in accordance with their terms prior to that date.
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