NEW YORK, Oct 24 (Reuters) – Apartment landlord AvalonBay
Communities Inc on Wednesday reported a 30 percent rise
in a key earnings performance measure in the third quarter,
helped by higher rental rates at existing and new properties.
The company reported funds from operations, or FFO, of $140.2
million, or $1.44 per share, up from $107.6 million, or $1.17
per share, in the year-ago period. Revenue rose 7.4 percent to
$271.9 million.
Funds from operations is an industry measure that usually
excludes the effect of depreciation from earnings as well as
losses or gains from property sales.
The results beat the average of analysts’ forecasts for FFO
of $1.40 per share on revenue of $264.9 million, according to
Thomson Reuters I/B/E/S. The company’s forecast ranged from
$1.38 to $1.42 per share. A performance bonus for its management
of a property that the company bought accounted for 4 cents a
share, AvalonBay said.
AvalonBay, which owns or has an interest in 205 apartment
communities, said it sees fourth-quarter FFO of $1.40 to $1.45
per share, compared with analysts average forecast $1.45 per
share.
For properties the company has operated more than a year,
AvalonBay posted a 7.1 percent rise in third-quarter net
operating income, an indicator of how well they are managed. The
average rental rate rose 5.1 percent.
Shares of AvalonBay closed up 3 cents, at $134.08 on the New
York Stock Exchange ahead of the results, and held steady in
after-hours trade.
