NEW YORK, July 24 Apartment landlord AvalonBay
Communities Inc reported better-than-expected funds from
operations in the second quarter, driven in part by rising
rental revenue which grew faster than expenses in most of its
The real estate investment trust on Wednesday posted
second-quarter funds from operations, or FFO, of $200.6 million,
or $1.55 per share, up from $128.2 million, or $1.34 per share,
in the year-earlier quarter.
Analysts had forecast $1.52 per share, according to Thomson
Reuters I/B/E/S. AvalonBay had expected FFO in the range of
$1.49 per share to $1.53 per share, including acquisition and
other non-routine items.
Funds from operations is an industry measure that usually
excludes the effect of depreciation on earnings as well as
losses or gains from property sales.
Last quarter, AvalonBay and larger rival Equity Residential
closed their purchase of the assets of Archstone, a company that
Lehman Brothers helped take private in 2007 but ultimately
helped push the investment bank into bankruptcy the following
AvalonBay said it expected it FFO for the year to be in a
range of $5.05 per share to $5.25 per share, up from its prior
forecast of $4.98 a share to $5.28 a share. Analysts had
forecast $5.21 per share, according to Thomson Reuters I/B/E/S.
Shares of AvalonBay closed down $2.24, or 1.6 percent, at
$138.09 Wednesday on the New York Stock Exchange.
The shares were unchanged after hours following the release
of the company's financial results