UPDATE 1-AvalonBay 4th-quarter FFO meets Street's forecast

* Fourth-quarter FFO meets analyst forecasts

* 2010 outlook trails Wall St estimates

* Stock closes down 2.2 percent

NEW YORK, Feb 3 (Reuters) - AvalonBay Communities Inc (AVB.N), an owner and builder of apartments, posted fourth-quarter funds from operations that were higher than a year earlier when it recorded greater one-time costs associated with abandoned projects and impairments

Quarterly FFO rose to $52.7 million, or 64 cents per share, from $22.9 million, or 30 cents per share, a year earlier, the company said on Wednesday.

The results fell matched analysts' average forecast of FFO, according to Thomson Reuters I/B/E/S.

Excluding one-time items, FFO would have fallen by 18.7 percent, the company said.

FFO is a key performance measure for real estate investment trusts, or REITs, because it excludes the profit-reducing effect of depreciation.

For 2010, Alexandria, Virginia-based AvalonBay said it expects FFO of $3.60 to $3.85 per share, lower than the average analyst forecast of $3.89 per share.

Shares of the company, which reported after the closing bell, ended down 2.2 percent at $77.83. (Reporting by Ilaina Jonas; Editing by Steve Orlofsky)