THE STOCK PRICE OF WASHINGTON REAL ESTATE INVESTMENT TRUST WAS REPORTED INCORRECTLY IN AN ITEM IN TUESDAY'S BUSINESS SECTION. THE SHARES CLOSED MONDAY AT 16.18 3/4. (PUBLISHED 07/31/99)

Baltimore mutual fund giant T. Rowe Price Associates yesterday said the strong performance of its funds led to a nearly 20 percent rise in its second-quarter profits.

The company earned $53.7 million (41 cents a share), compared with $44.9 million (34 cents) in the same period a year earlier. Revenue rose 11 percent, to $246 million.

For the six months, T. Rowe Price said it earned $107.1 million (82 cents), compared with $86.2 million (66 cents) in the first half of 1998. Revenue for the period increased 13 percent, to $491.6 million.

The total amount of money the firm managed, meanwhile, increased $10 billion in the second quarter to end the six-month period at $159.2 billion.

T. Rowe shares rose 12 1/2 cents to close at $35.25 in trading on the Nasdaq Stock Market.

American Mobile Satellite Corp. of Reston reported widening losses of $42.4 million in the second quarter, which ended June 30, compared with a loss of $39 million for the same period in 1998.

The company, which provides communications equipment and services via a satellite network, also owns XM Satellite Radio, a company hoping to provide digital radio services. The company said that its own losses this quarter reflected losses at XM. Without the XM losses, American Mobile would have lost $39.2 million for the quarter.

Revenue rose slightly for the period, to $22.9 million from $22.4 million. For the first six months of the year, the company lost $85.5 million, compared with a $64.2 million loss in the first half of 1998. Revenue for the six-month period rose 33 percent, to $43.1 million.

The company's shares were unchanged and closed at $20.62 1/2 in trading on the Nasdaq Stock Market.

Charles E. Smith Residential Realty Inc., an Arlington company that owns apartment buildings around the Washington region as well as in Chicago and southern Florida, reported that second-quarter results improved. The company, which in recent years has focused on developing high-rise buildings in urbanized areas, said its earnings were stronger because of "the increasing momentum of urban revitalization going on across the country."

Funds from operations, the usual measure of real estate company results, rose 27 percent, to $17.96 million, from $14.17 million in the same quarter last year; on a per share basis, funds from operations rose 11 percent, to 81 cents, from 73 cents on fewer shares. Funds from operations is a financial measure that adds back charges for property amortization and depreciation that otherwise reduce net income.

Revenue in the quarter rose 14 percent, to $70.52 million, from $61.72 million. Net income rose 60 percent, to $11.21 million (58 cents), from $7.02 million (45 cents).

In the first six months of the year, funds from operations rose 31 percent, to $33.70 million, from $25.72 million. Per share, funds from operations rose 11 percent, to $1.52, from $1.37. Revenue was up 19 percent, to $139.56 million, from $117.37 million. Net income rose 62 percent, to $20.96 million ($1.11), from $12.98 million (84 cents).

The company's stock closed yesterday at $34 per share, down 6 1/4 cents in New York Stock Exchange trading.

First Washington Realty Trust Inc., a Bethesda company that owns strip shopping centers, reported that results improved in the second quarter because rents it charges tenants rose while occupancy levels remained high, and it expanded its holdings through renovations, expansions and acquisitions.

Funds from operations, the usual measure of real estate company results, rose 25 percent in the quarter, to $10.1 million, from $8.1 million in the same quarter last year; on a per share basis, funds from operations rose 7 percent, to 59 cents, from 55 cents on fewer shares.

Revenue in the quarter rose 18 percent, to $21.4 million, from $18.1 million. Net income rose 36 percent, to $5.3 million (33 cents), from $3.9 million (29 cents).

In the first six months of the year, funds from operations was $20 million ($1.16), up 27 percent from $15.7 million ($1.07) in the same period last year. Revenue rose 22 percent, to $42.6 million, from $34.8 million. Net income rose 15 percent, to $10.5 million (66 cents), from $9.1 million (68 cents).

The company's stock closed yesterday at $23.37 1/2, unchanged in New York Stock Exchange trading.

MeriStar Hotels & Resorts Inc. of Washington reported a 40 percent increase in second-quarter earnings and its affiliated real estate investment trust, MeriStar Hospitality Corp., posted a 10 percent improvement in the quarter in funds from operations, the most commonly used measure of REIT performance.

MeriStar Hotels, which calls itself the nation's largest independent hotel management company, manages or leases 217 hotels, including many of the 117 properties owned by MeriStar Hospitality.

The operating company reported its revenue for the quarter ended June 30 grew to $345.2 million from $274.2 million and profit increased to $5.3 million (19 cents a share), from $3.8 million (15 cents) in last year's first quarter. For the first half of the year, revenue totaled $671.1 million, up from $518.2 million, and profit increased to $6.8 million (25 cents), from $2.9 million (11 cents).

The REIT said its revenue increased to $101.0 million from $86.7 million for the first quarter and for the six-month period grew to $194.5 million from $165.1 million.

Quarterly net income for the REIT grew to $31.9 million from $29 million, and for the six months increased to $57.8 million from $51.1 million. Funds from operations increased to $61 million ($1.06 a share), from $55.2 million ($1) for the quarter, and climbed to $115 million ($2), from $102.9 million ($1.85) for the first half.

Washington Real Estate Investment Trust, a Rockville company that owns office buildings, warehouses, apartments and shopping centers around the region, reported that results improved in the second quarter because it has been able to lease out recently acquired properties at rents that are sharply higher than they were when the company bought them and because operating income has continued to increase at buildings owned for a longer time.

Funds from operations, the most widely followed measure of real estate company results, rose 11 percent, to $13.41 million (38 cents per share), from $12.03 million (34 cents) in the same quarter last year.

Revenue in the quarter was $28.86 million, up 14 percent from $25.41 million. Net income was $8.77 million (25 cents), up 5 percent from $8.35 million (23 cents).

In the first six months of the year, funds from operations was $26.31 million (74 cents), up 8 percent from $24.33 million (68 cents) in the same period last year. Revenue rose 13 percent, to $56.52 million, from $49.91 million. Net income rose 10 percent, to $25.12 million (70 cents), from $22.87 million (64 cents).

The company's stock closed yesterday at $13.18 3/4, down 18 3/4 cents in New York Stock Exchange trading.