Associated Estates Realty Corporation Reports First Quarter Results

     Associated Estates Realty Corporation Reports First Quarter Results

First Quarter Same Community Revenue up 4.3 Percent

First Quarter Same Community NOI up 5.9 Percent

Quarter-End Same Community Physical Occupancy 96.6 Percent

PR Newswire

CLEVELAND, April 23, 2013

CLEVELAND, April 23, 2013 /PRNewswire/ --Associated Estates Realty
Corporation (NYSE, NASDAQ: AEC) announced today its financial results for the
first quarter ended March 31, 2013. Funds from Operations (FFO) for the first
quarter of 2013 was $0.31 per common share (diluted), compared to $0.25 per
common share (diluted) for the first quarter of 2012. FFO as adjusted for the
first quarter of 2013 was $0.31 per common share (diluted), compared to $0.29
per common share (diluted) for the first quarter of 2012, a 6.9% increase,
after adjusting 2012 first quarter FFO for $1.7 million of loan prepayment
costs and a credit of $279,000 for a refund of loan defeasance costs. There
were no FFO adjustments in the first quarter of 2013.

Net income applicable to common shares was $10.3 million, or $0.20 per common
share (diluted), for the quarter ended March 31, 2013. This compared to a net
loss applicable to common shares of $2.1 million, or $(0.05) per common share
(diluted), for the quarter ended March 31, 2012.

"It was another strong quarter for Associated Estates. Operating fundamentals
remain solid and the propensity to rent apartments continues at a generational
high," said Jeffrey I. Friedman, President and Chief Executive Officer.

A reconciliation of net income (loss) attributable to the Company to FFO, and
to FFO as adjusted, is included in the table at the end of this press release
and in the First Quarter Supplemental Financial Information furnished with
this earnings release to the Securities and Exchange Commission on Form 8-K.

Quarterly Same Community Portfolio Results

Net operating income (NOI) for the first quarter of 2013 for the Company's
same community portfolio increased 5.9% compared to the first quarter of
2012. Revenue increased 4.3% and property operating expenses increased 2.0%.
Physical occupancy was 96.6% at the end of the first quarter compared to 97.4%
at the end of the first quarter of 2012. Average monthly net rent collected
per unit for the same community properties was $1,094 compared to $1,051 for
the first quarter of 2012, a 4.1% increase.

Additional quarterly financial information, including performance by region
for the Company's portfolio, is included in the First Quarter Supplemental
Financial Information, which is available on the "Investors" section of the
Company's website at AssociatedEstates.com or by clicking on the following
link: quarterly results.

2013 Outlook

The Company reaffirmed its full year FFO as adjusted guidance range of $1.29
to $1.33 per common share (diluted). Detailed assumptions relating to the
Company's guidance can be found on page 24 of the First Quarter 2013
Supplemental Financial Information on the Company's website at
AssociatedEstates.com.

Capital Markets Activity

On January 22, 2013, the Company completed the issuance of $150 million of
unsecured Senior Notes. The notes were offered in a private placement with
two maturity tranches: $63 million 8-year maturity at 4.02% and $87 million
10-year maturity at 4.45%. The $150 million total issuance has a weighted
average term of 9.2 years at a weighted average interest rate of 4.27%.
Proceeds from the issuance were used to repay borrowings under the Company's
credit facility.

Transactional Activity

On March 22, 2013, the Company sold Idlewylde Apartments, an 843-unit property
located in Duluth, GA. Proceeds from the sale were used to repay all
outstanding borrowings under the Company's credit facility.

Conference Call

A conference call to discuss the Company's first quarter results will be held
on April 24, 2013 at 2:00 p.m. Eastern. To participate in the call:

Via Telephone: The dial-in number is (800) 860-2442, and the passcode is
"Estates." The call will be archived through May 8, 2013. The dial-in number
for the replay is (877) 344-7529, and the conference number for the replay is
10026683.

Via the Internet (listen only): Access the Company's website at
AssociatedEstates.com. Please log on at least 15 minutes prior to the
scheduled start time in order to register, download and install any necessary
audio software. Select the "First Quarter 2013 Earnings Conference Call"
link. The webcast will be archived for 90 days.

Company Profile

Associated Estates is a real estate investment trust ("REIT") and is a member
of the Russell 2000 and the MSCI US REIT Indices. The Company is headquartered
in Richmond Heights, Ohio. Associated Estates' portfolio consists of 51
properties containing 13,107 units located in ten states. For more information
about the Company, please visit its website at AssociatedEstates.com.

FFO and FFO as adjusted are non-Generally Accepted Accounting Principle
measures. The Company generally considers FFO and FFO as adjusted to be
useful measures for reviewing the comparative operating and financial
performance of the Company because FFO and FFO as adjusted can help one
compare the operating performance of a company's real estate between periods
or to different REITs. A reconciliation of net income (loss) attributable to
the Company to FFO, and to FFO as adjusted, is included in the table at the
end of this press release and in the First Quarter Supplemental Financial
Information included with this earnings release and furnished to the
Securities and Exchange Commission on Form 8-K.

Safe Harbor Statement

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: This news release contains forward-looking statements based on current
judgments and knowledge of management, which are subject to certain risks,
trends and uncertainties that could cause actual results to vary from those
projected, including but not limited to, expectations regarding the Company's
2013 performance, which are based on certain assumptions. Accordingly,
readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date of this news release. These
forward-looking statements are intended to be covered by the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. The words
"expects," "projects," "believes," "plans," "anticipates" and similar
expressions are intended to identify forward-looking statements. Investors
are cautioned that the Company's forward-looking statements involve risks and
uncertainties that could cause actual results to differ from estimates or
projections contained in these forward-looking statements, including without
limitation the following: changes in the economic climate in the markets in
which the Company owns and manages properties, including interest rates, the
overall level of economic activity, the availability of consumer credit and
mortgage financing, unemployment rates and other factors; elimination of, or
limitations on, federal government support for Fannie Mae and/or Freddie Mac
that might result in significantly reduced availability of mortgage financing
sources as well as increases in interest rates for mortgage financing; the
ability of the Company to refinance debt on favorable terms at maturity; risks
of a lessening of demand for the multifamily units owned by the Company;
competition from other available multifamily units, single family units
available for rental or purchase, and changes in market rental rates; the
failure of development projects or redevelopment activities to achieve
expected results due to, among other causes, construction and contracting
risks, unanticipated increases in materials and/or labor, and delays in
project completion and/or lease-up that result in increased costs and/or
reduce the profitability of a completed project; increases in property and
liability insurance costs; unanticipated increases in real estate taxes and
other operating expenses; weather conditions that adversely affect operating
expenses; expenditures that cannot be anticipated such as utility rate and
usage increases and unanticipated repairs; inability of the Company to control
operating expenses or achieve increases in revenue; shareholder ownership
limitations that may discourage a takeover otherwise considered favorably by
shareholders; the results of litigation filed or to be filed against the
Company; changes in tax legislation; risks of personal injury claims and
property damage related to mold claims that are not covered by the Company's
insurance; catastrophic property damage losses that are not covered by the
Company's insurance; the inability to acquire properties at prices consistent
with the Company's investment criteria; risks associated with property
acquisitions such as failure to achieve expected results or matters not
discovered in due diligence; risks related to the perception of residents and
prospective residents as to the attractiveness, convenience and safety of the
Company's properties or the neighborhoods in which they are located; and other
uncertainties and risk factors addressed in documents filed by the Company
with the Securities and Exchange Commission, including, without limitation,
the Company's Annual Report on Form 10-K and the Company's Quarterly Reports
on Form 10-Q.

                                       ASSOCIATED ESTATES REALTY CORPORATION
                                       Financial Highlights
                                       (in thousands, except per share data)
                                       Three Months Ended
                                       March 31,
                                       2013               2012
Total revenue                          $          $         
                                       44,993              38,207
Net income (loss) attributable to      $          $         
AERC                                   10,346              (2,081)
Add:  Depreciation - real estate       12,834             11,614
      assets
      Amortization of intangible       1,205              1,093
      assets
Less: (Gain) loss on disposition of    (8,796)            40
      properties
Funds from Operations (FFO) ^(1)       $          $         
                                       15,589              10,666
Add:  Prepayment costs                 $          $         
                                             -         1,743
Less: Refund of defeasance costs on    -                  (279)
      previously defeased loan
Funds from Operations (FFO) as         $          $         
adjusted ^(2)                          15,589              12,130
Add:  Depreciation - other assets      522                524
      Amortization of deferred         494                680
      financing fees
Less: Recurring fixed asset            (1,885)            (1,606)
      additions
Funds Available for Distribution       $          $         
(FAD) ^(3)                             14,720              11,728
Per share:
Net income (loss) applicable to        $          $         
common shares - basic                    0.21             (0.05)
Net income (loss) applicable to        $          $         
common shares - diluted                   0.20             (0.05)
Funds from Operations - diluted ^(1)   $          $         
                                          0.31             0.25
Funds from Operations as adjusted -    $          $         
diluted ^(2)                              0.31             0.29
Dividends per share                    $          $         
                                          0.19             0.17
Weighted average shares outstanding -  49,634             42,343
basic
Weighted average shares outstanding -  50,280             42,343
diluted



    The Company defines FFO in accordance with the definition adopted by the
    Board of Governors of the National Association of Real Estate Investment
    Trusts ("NAREIT"). This definition includes all operating results, both
    recurring and non-recurring, except those results defined as
    "extraordinary items" under generally accepted accounting principles
    ("GAAP"), adjusted for depreciation on real estate assets and amortization
    of intangible assets, and excludes impairment write-downs of depreciable
    real estate and gains and losses from the disposition of properties and
(1) land. FFO does not represent cash generated from operating activities in
    accordance with GAAP, is not necessarily indicative of cash available to
    fund cash needs and should not be considered an alternative to net income
    as an indicator of the Company's operating performance or as an
    alternative to cash flow as a measure of liquidity. The Company generally
    considers FFO to be a useful measure for reviewing the comparative
    operating and financial performance of the Company because FFO can help
    one compare the operating performance of a company's real estate between
    periods or as compared to different REITs. It should be noted, however,
    that other real estate companies may define FFO in a different manner.
    The Company defines FFO as adjusted as FFO, as defined above, excluding
    $1.7 million of prepayment costs associated with debt repayments for the
    three months ended March 31, 2012 and $(279) of refunds for a previously
    defeased loan for the three months ended March 31, 2012. In accordance
(2) with GAAP, these prepayment costs and refunds on the previously defeased
    loan are included in interest expense in the Company's Consolidated
    Statements of Operations and Comprehensive Income. We are providing this
    calculation as an alternative FFO calculation as we consider it a more
    appropriate measure of comparing the operating performance of a company's
    real estate between periods or as compared to different REITs.
    The Company defines FAD as FFO as adjusted, as defined above, plus
    depreciation other and amortization of deferred financing fees less
    recurring fixed asset additions. Fixed asset additions exclude
    development, investment, revenue enhancing and non-recurring capital
    additions. The Company considers FAD to be an appropriate supplemental
(3) measure of the performance of an equity REIT because, like FFO and FFO as
    adjusted, it captures real estate performance by excluding gains or losses
    from the disposition of properties and land, depreciation on real estate
    assets and amortization of intangible assets. Unlike FFO and FFO as
    adjusted, FAD also reflects that recurring capital expenditures are
    necessary to maintain the associated real estate.

The full text and supplemental financial information of this press release are
available on Associated Estates' website at AssociatedEstates.com. To receive
a copy of the results by mail or fax, please contact Investor Relations at
(800) 440-2372. For more information, access the Investors section of
AssociatedEstates.com.

For more information, please contact:

Jeremy Goldberg (216) 797-8715

SOURCE Associated Estates Realty Corporation

Website: http://www.associatedestates.com