Jefferies Provides Color On AEC 4Q10

Associated Estates Realty AEC reported 4Q10 FFO/share of $0.24, “vs. our estimate of $0.22 and consensus estimate of $0.23,” Jefferies reports. “Variance vs. our estimate due to stronger than expected rental revenue and other income,” Jefferies writes. “We believe AEC represents the best value play in the Apartment REIT universe given the stock's deep valuation discount to the sector average on both a P/FFO and NAV basis. “We expect earnings growth at AEC, driven by accretive acquisitions, to outpace the sector average over the next 2-3 years.” Associated Estates Realty currently trades at $15.32.