Boston REIT Berkshire Income Realty Inc. has reported $4.8 million in funds from operations (FFO) in 2009, a decrease of $2.9 million, or 37.4 percent, from $7.6 million in 2008.

The decrease in FFO is due primarily to changes in the accounting for transaction costs and the write-off of the company’s investment in the Mezzanine Loan LLC of $1.1 million.

Transaction costs for the acquisition of Los Angeles’ Glo Apartments totaled approximately $1.2 million, which were included in general and administrative expense on the consolidated statement of income (loss). Additionally, a judgment against the company related to a matter which had been under appeal of approximately $747,992, contributed to the decrease in FFO in the comparable periods.

In 2009, Berkshire reported net income of $3.4 million compared to adjusted net income of $7.6 million in 2008. The decrease in adjusted net income was primarily due to the write-off of the company’s investment in the Mezzanine Loan LLC, the transaction costs of the Glo Apartments and the judgment paid as previously mentioned.

"Over the past two years we have experienced challenges in the real estate industry related to the disruptions in the financial sector and the national economy. More recently, many economists have reported that the economic contraction has eased and the recession that began in 2007 has ended. The severity of the recession, however, has continued to affect the multifamily industry," said President and CFO David Quade. "Despite these operating challenges, the company has worked hard to maintain and increase occupancy levels and to increase its resident retention percentage. Management’s efforts have resulted in increasing occupancy levels to 95 percent and to increasing its tenant retention percentage from approximately 50 percent to over 60 percent by the end of 2009. These efforts, as well successful efforts to decrease operating expenses, resulted in a positive same store NOI increase for 2009 despite the great recession."