AvalonBay beats by $0.01, beats on revs; guides Q4 EPS below consensus; guides FY07 EPS below consensus

Reports Q3 (Sep) funds from operations of $1.20 per share, excluding non-recurring items, $0.01 better than the Reuters Estimates consensus of $1.19; revenues rose 45.2% year/year to $208.1 mln vs the $206 mln consensus. Co issues downside guidance for Q4, sees FFO of $1.16-1.20 vs. $1.21 consensus. Co issues downside guidance for FY07, sees FFO of $4.63-4.67 vs. $4.68 consensus. The outlook provided for the full year and Q4 includes non-cash charges of $0.03 and $0.13 per share, respectively, related to the revised land lease accounting discussed in Amendment No. 1 to the co's 2006 Annual Report on Form 10-K/A.