The Apartment Finance Today Index (AFT Index) slid south for our session ended Feb. 13, 2006.

Two companies, Amli Residential Properties Trust and Criimi Mae, Inc., were removed from the index after their acquisitions were completed. Amli was purchased by Morgan Stanley Real Estate’s Prime Property Fund. Criimi Mae was acquired by CDP Capital, a subsidiary of Caisse de depot et placement du Quebec. The AFT Index shed 71.41 points, or 5.62%, and closed at 1200.11. Of the 18 stocks now tracked in our index, however, advancing issues outpaced declining issues by a 5-to-1 margin.

The major markets trended downward, with no substantial economic news driving the momentum. Near-term gasoline prices are expected to drop, with an upturn expected in the spring. Tech stocks fell as Wall Street worried about Google.

The Federal Reserve raised rates at the end of January a quarter point, as expected, while Ben Bernanke took the reins of the Fed from 18-year veteran Alan Greenspan. Investors are still concerned about inflation and await signs from the new chairman to see if another rate hike is in the cards.

“Right now, the transparency we had with Greenspan is gone. We’re trying to get some semblance of which way the Fed is going to go,” said Jack Ablin, chief investment officer for Harris Private Bank.

Shares of GE dropped this session after the company met earnings expectations for the fourth quarter but posted revenue below analysts’ expectations. For the three months ended Dec. 31, 2005, GE earned net income of $3.06 billion, or 29 cents per share, compared with net income of $5.6 billion, or 53 cents per share, earned in the same quarter in 2004. Although GE Chairman and CEO Jeff Immelt said, “We think we’re on track for an excellent year in 2006,” Brian Langenberg, managing director of Foresight Research Solutions in Oak Park, Ill., called the results “boring,” and said, “People wanted to be overwhelmed on the upside.” GE fell 2.75 points, or 7.64%, and took the AFT Index with it. GE ended at 33.25 and was our top dollar and percentage loser this session.

Suitors littered the ground with proposals for Town & Country as the company found itself the recipient of several marriage bids in this busy acquisitions season. The wooing began in December with an acquisitions proposition for $1.3 billion, or about $33.90 per share, from a joint venture between Morgan Stanley Real Estate and Onex Real Estate. Then a proposal came in from Oriole Partnership, an agreement between Essex Properties Trust, UBS Wealth Management North American Property Fund and AEW Oriole Co-Investment. After that, the offers and counteroffers began to pile up. As of our session’s close, the last offer was from Morgan Stanley and Onex Real Estate for $39.60 per share. Town & Country added a whopping 10.85 points, or 35.93%, and closed at 41.05. Town & Country was our top dollar and percentage gainer.

Apartment Finance Today Index

Company (Ticker symbol) Price 2/13/06  Price 12/15/05 Net Change Percent Change 52-Week High 52-Week Low  
Apartment Investment and Management Co. (AIV) 42.96 38.04 4.92 12.93% 44.14 34.93
Archstone-Smith Trust (ASN) 45.23  42.12 3.11 7.38% 48.29 32.76  
Associated Estates Realty Corp. (AEC) 10.25 9.12 1.13 12.39% 10.48 8.52
AvalonBay Communities, Inc. (AVB) 99.01 90.73 8.28 9.13% 101.03 64.98
BNP Residential Properties, Inc. (BNP) 16.90 15.51 1.39 8.96% 17.25 12.89
BRE Properties, Inc. (BRE) 51.50  44.92 6.58 14.65% 52.37 34.61  
Camden Property Trust (CPT)  64.55 58.03 6.52 11.24% 66.45 45.54  
CharterMac (CHC) 21.75   22.10 -0.35 -1.58% 23.75 18.50
Colonial Properties Trust (CLP) 46.23  42.70 3.53 8.27% 47.90 35.55  
Equity Residential (EQR) 43.73  39.59 4.14 10.46% 43.75 30.70
Essex Property Trust, Inc. (ESS) 98.40  91.53 6.87 7.51% 100.47 68.50  
Forest City Enterprises, Inc. (FCEa) 37.93 38.94 -1.01 -2.59% 41.00 30.60
General Electric, Inc. (GE Commercial Finance Real Estate) (GE)  33.25 36.00 -2.75 -7.64% 37.34 32.21
Home Properties, Inc. (HME) 48.67  41.89 6.78 16.19% 49.20 35.36  
Mid-America Apartment Communities, Inc. (MAA) 52.30 49.24 3.06 6.21% 52.60 35.62
Post Properties, Inc. (PPS) 42.83  40.91 1.92 4.69% 42.89 30.13
Town & Country Trust (TCT) 41.05  30.20 10.85 35.93% 41.38 25.00  
United Dominion Realty Trust, Inc.(UDR) 25.02 23.27 1.75 7.52% 25.97 20.55

Note: Amli Residential Properties Trust (AML) was purchased by Morgan Stanley's Prime Property Fund on Feb. 7, 2006, and removed from the index. Criimi Mae (CMM) was purchased by CDP Capital on Jan. 18, 2006, and removed from the index.