Boston’s Berkshire Income Realty Inc. has reported $3.2 million in funds from operations (FFO) for the three months ended June 30, an increase of $776,701 compared to the same period a year ago.

The increase in FFO was attributed primarily to the incremental operations of a first quarter 2011 property acquisition, Estancia Apartment Homes in California, and net gains in rental revenue growth from the existing portfolio properties, according to a statement.

FFO for the six months ended June 30 was $4.5 million, up from $3.2 million for the same period in 2010.

According to a statement from Berkshire, multifamily apartment industry fundamentals continue to be positive, even in light of the recent economic turmoil both in the U.S. and abroad. As noted by economists specializing in multifamily apartments, demand for apartments in 2010 was the best seen in years and is expected to continue through 2011. Many experts believe that between 2011 and 2013, demand for apartments will increase as favorable apartment supply and demand fundamentals continue to be favorable.

"We are pleased with the improvement in Berkshire’s operating results and the progress with respect to our two development projects," said President David Quade. "The results during the second quarter of 2011 contributed to a strong same property net operating income increase of over 6 percent for the first six months of 2011. This positive result was primarily attributed to revenues, which continued to increase largely due to the company’s revenue management software. The revenue growth is further supported by the fact that the majority of our properties are located in major metropolitan markets currently experiencing strong demand for multifamily apartments. Construction at both of our ground-up development sites continues on schedule and on budget, with both of these Class A properties expected to be available for initial leasing mid-year 2013. We anticipate the multifamily apartment sector to continue its strong recovery over the near term."