AvalonBay Communities Inc. Earnings Cheat Sheet: FFO Rises 17.8%

S&P 500 (NYSE:SPY) component AvalonBay Communities Inc. (NYSE:AVB) reported its results for the fourth quarter. AvalonBay Communities develops, acquires, and operates multifamily communities in barrier-to-entry markets in the United States.

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AvalonBay Communities Earnings Cheat Sheet for the Fourth Quarter

Results: The company’s funds from operations (FFO) rose 17.8% from the year earlier quarter to $1.19. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings. It fell short of the consensus estimate of $1.21 per share.

Quoting Management: Tim Naughton, CEO and President, said “Fourth Quarter 2011 results cap a near-record year for FFO per share and NOI growth. We expect the strong fundamentals for rental housing will continue into 2012, supporting our outlook for 18% FFO per share growth and our 9% dividend increase for the upcoming year.”

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is $1.27 per share, down from $1.30 ninety days ago. At $4.60 per share, the average estimate for the fiscal year has fallen from $4.63 ninety days ago.

Stock Performance: Shares of AVB were up 0.7% from the previous close.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com