Zacks_Analysts' Blog : HME Acquires Apartment Communities - Analyst Blog

Home Properties Inc. (HME) recently announced that it has acquired two apartment communities, namely, The Gates of Deer Grove in Palatine, Illinois for $20.2 million and Courts at Dulles in Herndon, Virginia for $92.75 million.

The Gates of Deer Grove consists of 204 units and at the time of the completion of the acquisition, the property was 98.0% occupied. On the other hand, Courts at Dulles comprises 411 units and on completion of the acquisition, the property was 95.6% occupied.

With the closing of the two acquisitions, Home Properties has purchased properties worth more than half a billion dollar in 2011. In 2011, the company acquired eight properties in five states comprising more than 2,800 apartments, and this will add further value to its shareholders.

Home Properties reported third quarter 2011 FFO (Funds Fom Operations) of $46.4 million or 87 cents per share compared with $38.9 million or 79 cents per share in the year-earlier quarter. Funds Fom operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

Home Properties is an apartment real estate investment trust that owns, operates, develops, acquires and rehabilitates apartment communities primarily in selected Northeast and Mid-Atlantic markets.

Home Properties currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Avalonbay Communities Inc. (AVB) also holds a Zacks #3 Rank.