Despite strong downward pressures from the broader markets for the session ended June 15, 2006, the APARTMENT FINANCE TODAY Index slid only a little way into negative terrain this month, shedding 9.71 points, or 0.79 percent, to close the session at 1,222.06. However, advancing issues outpaced declining issues by a 12-to-5 count.
Wall Street found itself awash in red ink in May and the first half of June as inflation fears caused investors to give up nearly all the stock market’s advances in 2006.
Fears that inflation would reduce growth worldwide caused equities around the globe to fall.
The markets turned sharply higher on the last day of our trading session after Fed chief Ben Bernanke soothed investors’ fears by saying that record energy and commodity prices likely contributed to the recent upturn in core prices.
"I think the market is trying to look beyond any day’s set of numbers and the next Fed comment and trying to get a real assessment of how this inflection point in the economy is going to play out,” said Jerry Webman, chief economist of Oppenheimer Funds. “The crosswinds are blowing in different directions; the question is how far they’re going to push us.”
Home Properties rose 4.73 points, or 9.73 percent, to make it the top dollar and percentage gainer this month. The company’s shares have climbed almost 50 percent since reaching a 52-week low of $35.36 in December.
Mid-America, our second-highest dollar gainer this month, with an increase of 3.22 points, reiterated its earnings projections for the second quarter and for the year. Mid-America said that tax law changes in Texas and Tennessee will not change its previous earnings estimates, which project that funds from operations will run between $3.20 to $3.38 per share for the year, and between 80 cents and 88 cents per share for the second quarter. Shares of Mid-America were up 6.15 percent, and closed at 55.56.
CharterMac fell this session, losing 0.80 points, or 4.38 percent, to end at 17.45. CharterMac said that it plans to acquire ARCap Investors, LLC, in a transaction valued at $284.5 million, including transaction fees. The deal was approved by board members of both companies, and is subject to shareholder and regulatory approval.
“The acquisition of ARCap is the next step in the transformation of our company from a spread investor to a real estate fund manager,” said CharterMac CEO and President Marc Schnitzer. CharterMac also said that it will move its loan-servicing operations to Dallas, where ARCap is located.
The move will result in the loss of 25 to 30 jobs. CharterMac was our biggest dollar and percentage loser this session.
Apartment Finance Today Index
|Ticker Symbol||Company||Price 6/15/06||Price 5/15/06||Net Change||Percent Change||52-Week High||52-Week Low|
|AIV||Apartment Investment and Management Co. (AIMCO)||44.09||44.82||-0.73||-1.63%||48.38||34.93|
|AEC||Associated Estates Realty Corp.||12.15||11.40||0.75||6.58%||12.55||8.65|
|AVB||AvalonBay Communities, Inc.||107.17||107.08||0.09||0.08%||112.00||78.03|
|BNP||BNP Residential Properties, Inc.||16.52||16.60||-0.08||-0.48%||17.50||12.89|
|BRE||BRE Properties, Inc.||53.50||52.45||1.05||2.00%||56.70||39.54|
|CPT||Camden Property Trust||70.47||71.21||-0.74||-1.04%||73.50||49.56|
|CLP||Colonial Properties Trust||45.50||45.47||0.03||0.07%||51.80||40.12|
|ESS||Essex Property Trust, Inc.||106.00||104.90||1.10||1.05%||111.10||80.35|
|FCEa||Forest City Enterprises, Inc.||46.68||45.00||1.68||3.73%||47.43||32.26|
|GE||General Electric, Inc. (GE Real Estate)||34.11||34.56||-0.45||-1.30%||36.65||32.21|
|HME||Home Properties, Inc.||53.31||48.58||4.73||9.74%||53.49||35.36|
|MAA||Mid-America Apartment Communities, Inc.||55.56||52.34||3.22||6.15%||58.75||42.53|
|PPS||Post Properties, Inc.||44.70||42.61||2.09||4.90%||48.00||33.83|
|UDR||United Dominion Realty Trust, Inc.||27.35||27.14||0.21||0.77%||29.05||20.88|