AvalonBay Reports Strong Q1 2024 Earnings

AvalonBay Communities, Inc. (NYSE: AVB) has reported its first quarter 2024 operating results, showing improvements in key financial metrics compared to the same period last year. The company's earnings per share – diluted (EPS) increased by 16.2%, reaching $1.22 compared to $1.05 in Q1 2023. Funds from operations attributable to common stockholders * diluted (FFO) per share also saw a rise of 7.5%, reaching $2.73 from $2.54 in the first quarter of the previous year. Additionally, core FFO per share increased by 5.1% to $2.70 from $2.57 in Q1 2023.

The same store total revenue for the three months ended March 31, 2024, increased by 4.3% to $677,245,000, with same store residential revenue rising by 4.2% to $669,227,000. However, same store residential operating expenses also increased by 5.2% to $205,486,000, resulting in a 3.7% growth in same store residential net operating income (NOI) to $463,741,000.

Looking at specific regions, the New England area saw a 4.8% increase in same store residential revenue and a 2.7% rise in operating expenses, leading to a 5.8% increase in NOI. The Metro NY/NJ area reported a 4.0% growth in revenue, but a significant 8.4% increase in operating expenses, resulting in a 2.0% NOI. Other regions also showed varying changes in these key metrics.

AvalonBay Communities, Inc. also provided insights into its development and investment activities. As of March 31, 2024, the company had 17 consolidated development communities under construction, with an estimated total capital cost at completion of $2,500,000,000. Additionally, the company had seven commitments to fund either mezzanine loans or preferred equity investments for the development of multifamily projects in its markets, up to $191,585,000 in the aggregate.

In terms of liquidity and capital markets, the company had $287,892,000 in unrestricted cash and cash equivalents as of March 31, 2024, and did not have any borrowings outstanding under its $2,250,000,000 unsecured revolving credit facility.

Looking ahead, for the second quarter and full year 2024, the company expects projected EPS to be in the range of $1.60 to $1.70 for Q2 2024, and $6.98 to $7.38 for the full year. Projected FFO per share is expected to be between $2.59 and $2.69 for the second quarter, and $10.63 to $11.03 for the full year. Projected core FFO per share is anticipated to be in the range of $2.63 to $2.73 for Q2 2024, and $10.71 to $11.11 for the full year.

The market has reacted to these announcements by moving the company's shares 1.9% to a price of $195.01. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.