Colonial Properties reports large drop in net income in 2Q

Birmingham's Colonial Properties Trust reported a significant drop in net income in the second quarter of this year as a result of some year-ago dispositions of property.

The company reported $9.1 million in net income available to common shareholders, or 0.19 cents per diluted share - down from $304.9 million in the second quarter of last year and down from $14.2 million in the first quarter of this year.

Colonial (NYSE: CLP) said the drop over second quarter 2007 was related to net gains of $329.2 million from the sale of properties and office and retail joint-venture transactions in the second quarter of last year.

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For the first half of 2008, net income fell to $23.3 million, or 0.50 cents per diluted share, compared to $336.8 million in the first half of last year.

However, funds from operations (FFO), an important indicator for real estate investment trusts, rose 60 percent in the second quarter to $32.4 million compared to the same period last year, but fell slightly from $33.1 million in the first quarter of this year.

FFO for the first half of this year totaled $65.5 million, or $1.15 per diluted share, compared to $64.1 million in the first half of last year.

Multifamily same-property net operating income increased 3.2 percent over last year. Last year, the company announced it would make multifamily its core business.

"We recognize the challenging economic environment and remain focused on the objectives outlined at the beginning of the year to de-lever our balance sheet through the sale of older multifamily assets, improve the company's liquidity, reduce overhead costs, and to limit development spending," said Reynolds Thompson, Colonial's CEO.