AvalonBay Communities, Inc. (AVB), headquartered in Arlington, Virginia, is an equity REIT in the business of developing, redeveloping, acquiring, and managing apartment communities in leading metropolitan areas. Valued at $30.3 billion by market cap, the company has a 30-year track record in some of the best U.S. markets across 12 states and Washington, DC. The leading multifamily REIT is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Jan. 29.
Ahead of the event, analysts expect AVB to report a profit of $2.82 per share on a diluted basis, up 2.9% from $2.74 per share in the year-ago quarter. The company beat the consensus estimate in each of the last four quarters.
For the full year, analysts expect AVB to report FFO of $11.04, up 3.9% from $10.63 in fiscal 2023. Its FFO is expected to rise 4.8% year over year to $11.57 in fiscal 2025.
AVB stock has underperformed the S&P 500’s ($SPX) 25.8% gains over the past 52 weeks, with shares up 15.6% during this period. However, it outperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 1.8% gains over the same time frame.
On Nov. 4, AVB shares closed up more than 1% after reporting its Q3 results. Its FFO of $2.74 surpassed Wall Street estimates of $2.71. The company’s revenue of $734.3 million, surpassing Wall Street forecasts of $731.7 million. For Q4, AVB expects its FFO to range from $2.78 to $2.88. The company expects full-year FFO to be between $10.99 and $11.09.
Analysts’ consensus opinion on AVB stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, nine advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and 13 give a “Hold.” AVB’s average analyst price target is $239.95, indicating a potential upside of 13.6% from the current levels.
