UPDATE 1-AvalonBay first-quarter FFO rises

Wed Apr 27, 2011 5:07pm EDT

* First-quarter FFO shr $1.08; View $1.05

* Sees 2011 FFO shr meeting or surpassing forecast

NEW YORK, April 27 (Reuters) - Apartment building owner AvalonBay Communities Inc (AVB.N) on Wednesday said first-quarter funds from operations, rose in part on higher rental revenue.

The company reported funds from operations, or FFO, of $1.08 per share, up from 96 cents per share in the year-earlier quarter. The most recent first quarter includes a benefit of 3 cents for share for interest income and a cost of 1 cent a share for East Coast storm damage.

Analysts, on average, expected $1.05 per share, on revenue of $233.9 million, according to Thomson Reuters I/B/E/S.

FFO, a REIT performance measure, removes the profit-reducing effect depreciation has on earnings.

Arlington, Virginia-based AvalonBay said it sees second quarter FFO of $1.06 per share to $1.10 per share. It also said it expects to meet or exceed the high end of the range of its full-year FFO forecast of $4.50 per share to $4.75 per share.

Analysts expected $1.14 per share for the quarter and $4.64 for the year. (Reporting by Ilaina Jonas; editing by Carol Bishopric)

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