By Neil Haggerty
AvalonBay Communities Inc. reported better-than-expected core
funds from operations in its most recent quarter as profit rose,
driven by development activity.
The company also raised its outlook, expecting projected 2015
core FFO per share to increase 11.1%, up from its original
projection of an 8.4% increase.
For the current quarter, the company forecast core funds from
operations of $1.90 a share to $1.94 a share. Analysts expect core
FFO of $1.86 a share, according to Thomson Reuters.
The real-estate investment trust said its results were boosted
by higher revenue in its established communities portfolio. Average
rental rates increased 5% in its established communities portfolio,
partially offset by a decrease in economic occupancy of 0.3%,
resulting in a rental revenue increase of 4.7%.
For the quarter ended June 30, AvalonBay reported earnings of
$172.3 million, or $1.29 a share, compared with $158.1 million, or
$1.21 a share, a year earlier.
Per-share core FFO rose to $1.87 from $1.70. Analysts were
looking for an adjusted FFO of $1.85. Overall FFO was $2.18, up
from $1.71.
Revenue increased 10.5% to $457.5 million. Analysts were looking
for $452 million in revenue.
Shares, inactive after hours, have risen 14% in the past 12
months.
Write to Neil Haggerty at neil.haggerty@wsj.com
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