Associated Estates Realty Corporation Announces Redemption of 7.92% Trust Preferred Securities

CLEVELAND, May 13 /PRNewswire-FirstCall/ -- Associated Estates Realty Corporation (NYSE: AEC) (Nasdaq: AEC) announced today its intention to redeem all of its outstanding Trust Preferred Securities on or about June 30, 2010.  The Trust Preferred Securities will be redeemed at the principal aggregate amount plus an amount equal to accrued and unpaid interest up to but excluding the redemption date.

In connection with the issuance of the Trust Preferred Securities in March 2005, the Company incurred issuance costs that were recorded as other assets and subsequently charged to interest expense each period over the life of the securities. In accordance with generally accepted accounting principles, the Company will reflect the remaining cost of $0.7 million as a one-time non cash charge to interest expense for the second quarter of 2010.

This news release contains forward-looking statements based on current judgments and current 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, preliminary expectations regarding the Company's second quarter 2010 and full year 2010 financial performance, which are based on certain assumptions as noted in this news release. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. 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 uncertainty.

Associated Estates is a real estate investment trust ("REIT") and is a member of the Russell 2000. The Company is headquartered in Richmond Heights, Ohio. Associated Estates' owned and non-owned portfolio consists of 49 properties containing 12,366 units located in eight states.

SOURCE Associated Estates Realty Corporation

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