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UPDATE 1-AvalonBay earnings beat expectations
April 25, 2012 / 8:45 PM / 6 years ago

UPDATE 1-AvalonBay earnings beat expectations

April 25 (Reuters) - Apartment landlord AvalonBay Communities Inc on Wednesday said first-quarter earnings rose 30.5 percent, citing higher rent from new and existing properties, lower expenses and reduced interest costs.

The company posted first-quarter funds from operations, or FFO, of $122.0 million, or $1.28 per share, versus $93.5 million, or $1.08 a share, a year ago.

Analysts on average had expected $1.24 per share, according to Thomson Reuters I/B/E/S. The company had forecast $1.20 to $1.24 per share.

Funds from operations, or FFO, is an industry measure that usually removes the effect of depreciation from earnings and also does not include losses or gains from property sales.

Arlington, Virginia-based AvalonBay, which owns or has an interest in 199 apartment communities, said it sees second-quarter FFO in the range of $1.30 per share to $1.34 per share, Analysts on average forecast $1.34 per share.

For properties the company has operated more than a year, AvalonBay posted a 6.6 percent rise in rent revenue, with those in Northern California leading the way, with a 10.3 percent rise in rent revenue.

Net operating income, an indicator of how well the properties are managed, rose 10.2 percent.

Shares of AvalonBay closed up 0.8 percent, or $1.10, at $145.64 on the New York Stock Exchange, and were down 0.27 percent at $145.25 in after-hours trade.

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