NEW YORK, July 24 (Reuters) - 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 markets.
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 year.
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