Associated Estates Realty Corporation (AEC) released its second quarter 2009 earnings report and reported strong Funds From Operations (FFO) of $0.33 per share, down marginally from the $0.34 reported in the same quarter last year. Its net income was $0.62 per share. Investors tend to focus on FFO since GAAP net income contains many non-cash items.

Although Associated Estates Realty Corporation is profitable; it is seeing the effects of the recession in its footprint. The company said that its occupancy rate was 95.4% at the end of the second quarter, compared to 96.3% in the same quarter last year. Average net rent was $913 per unit, down 0.2% year over year.

The company had two special charges during the first six months of 2009. The first was a gain on insurance recoveries of $0.03 per share, and the second was a gain on the disposition of property of $0.79 per common share.

Associated Estates Realty Corporation reiterated its FFO expectations for the full year 2009 of $1.17 to $1.23 per share. At its current price, the stock trades at a price to earnings ratio of 5.5, and at a price to book value of 0.95.

Associated Estates Realty Corporation is organized as a real estate investment trust (REIT), and headquartered in Ohio. The company owns or manages 50 multifamily properties, comprising more than 12,000 units in an eight state area.