AvalonBay Communities, Inc. has recently released its 10-Q report, providing a comprehensive overview of its financial performance and operational activities for the third quarter of 2024. AvalonBay is a real estate investment trust (REIT) that focuses on developing, acquiring, and managing apartment communities in various metropolitan areas across the United States. As of June 30, 2024, the company owned or held a direct or indirect ownership interest in 300 apartment communities containing 91,399 apartment homes in 12 states and the District of Columbia.
In the third quarter of 2024, AvalonBay reported a net income attributable to common stockholders of $372,519,000, marking a significant increase of $200,488,000, or 116.5%, from the same period in the prior year. This substantial growth was primarily driven by increases in real estate sales and related gains, as well as a rise in net operating income (NOI) from communities over the prior year period.
The company's Same Store NOI attributable to apartment rental operations for the third quarter of 2024 was $456,664,000, reflecting an increase of $9,170,000, or 2.0%, compared to the prior year period. This growth was attributed to an increase in residential revenue, partially offset by higher residential property operating expenses.
AvalonBay's development activities remained robust, with 19 wholly-owned communities under construction as of September 30, 2024, expected to contain 6,855 apartment homes with a projected total capitalized cost of $2,683,000,000. Additionally, the company held land or rights to land for an additional 28 apartment communities, which, if developed as expected, will contain 9,091 apartment homes.
During the third quarter of 2024, AvalonBay engaged in several real estate transactions, including the sale of two wholly-owned communities containing 587 apartment homes for $332,000,000, resulting in a gain of $172,986,000 in accordance with GAAP. The company also acquired three wholly-owned communities containing 668 apartment homes for a purchase price of $212,500,000.
AvalonBay's real estate investments consist of various categories, including Same Store, Other Stabilized, Redevelopment, Unconsolidated, Development, Unconsolidated Development, and Development Rights. These categories encompass a diverse portfolio of current operating apartment communities, communities in different stages of development, and development opportunities.
In terms of financial performance, the company reported total revenue of $734,307,000 for the third quarter of 2024, representing a 5.3% increase compared to the same period in the prior year. Moreover, net income attributable to common stockholders for the nine months ended September 30, 2024, amounted to $799,902,000, reflecting a 16.5% increase from the prior year period.
AvalonBay's NOI, a key performance measure for the company, was impacted by various factors, including overall and individual geographic market conditions, apartment fundamentals, and real estate activities such as acquisitions, development completions, and dispositions.
Today the company's shares have moved -0.7% to a price of $230.63. Check out the company's full 10-Q submission here.
