AvalonBay Communities, Inc. (NYSE: AVB) has reported its operating results for the year ended December 31, 2024, and the figures show positive growth across various key metrics.
For the fourth quarter of 2024, the company reported an increase in earnings per share (EPS) of 16.5% compared to the same period in 2023, reaching $1.98. Funds from operations (FFO) per share remained unchanged at $2.63, while core FFO per share increased by 2.2% to $2.80.
In terms of the full year 2024 results, there was a notable increase in EPS, rising by 15.9% to $7.60. FFO per share also experienced growth, reaching $10.98, a 6.4% increase from the previous year. Core FFO per share for the full year 2024 increased by 3.6% to $11.01.
The company's same-store residential revenue for the year ended December 31, 2024, increased by 3.4% to $2,653,416,000, with operating expenses rising by 5.0% to $825,150,000. Consequently, same-store residential net operating income (NOI) experienced a 2.7% increase, reaching $1,828,266,000.
In terms of development activity, AvalonBay Communities completed the development of four wholly-owned communities during the fourth quarter of 2024, comprising a total of 1,451 apartment homes, with a combined capital cost of $636,000,000.
The company also engaged in disposition and acquisition activities during the same period. Three wholly-owned communities were sold, generating a gain of $121,841,000 in accordance with accounting principles generally accepted in the United States (GAAP). On the acquisition side, AvalonBay Communities acquired two wholly-owned communities for a total purchase price of $185,500,000.
Regarding liquidity and capital markets, the company had $108,576,000 in unrestricted cash and cash equivalents as of December 31, 2024. Additionally, it did not have any borrowings outstanding under its $2,250,000,000 unsecured revolving credit facility or its $500,000,000 unsecured commercial paper note program at that time. The company's annualized net debt-to-core EBITDARE for the fourth quarter of 2024 was 4.2 times, and unencumbered NOI for the year ended December 31, 2024, was 95%.
Looking ahead, the company declared a dividend of $1.75 per share for the first quarter of 2025, representing a 2.9% increase over the previous quarterly dividend. It also provided an outlook for the first quarter and full year 2025, with projected EPS, FFO, and core FFO figures.
The market has reacted to these announcements by moving the company's shares -1.3% to a price of $221.43. For more information, read the company's full 8-K submission here.
