Arlington-based AvalonBay Communities, Inc. (AVB) operates as a real estate investment trust (REIT). With a market cap of $29.6 billion, the company specializes in the development and management of multifamily apartment communities across high-demand regions. The company is expected to announce its fiscal Q2 earnings results after the market closes on Wednesday, Jul. 31.
Ahead of this event, analysts expect AVB to report a Core (Funds From Operations) FFO of $2.71 per share, a 1.9% increase from the $2.66 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarters. In the most recent quarter, the company's Core FFO of $2.70 per share jumped 6.1% annually, surpassing the consensus estimate by a 2.3% margin.
For fiscal 2024, analysts expect AVB to report a Core FFO per share of $10.92, up 2.7% from $10.63 in fiscal 2023. Looking forward to fiscal 2025, Core FFO per share is expected to grow 5% annually to $11.47.
AVB has risen 8.2% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 23.2% gain but outpacing slightly the S&P 500 Real Estate Sector SPDR's (XLRE) 7.9% increase over the same period.
AvalonBay's Q1 earnings results announced on April 25 soared beyond analyst predictions, highlighting the company's impressive resilience and strategic prowess. The standout 4.3% increase in Same-store total revenue, climbing to $677.2 million, underscores its strategic efficiency.
Additionally, AvalonBay's financial health is rock-solid, boasting $287.9 million in unrestricted cash and a fully available $2.3 billion credit facility as of March 31. However, the company’s strong Q1 performance failed to excite investors, as evidenced by its shares remaining nearly flat post-Q1 earnings announcement.
Overall, analysts' consensus view on AvalonBay Communities stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 23 analysts covering the stock, seven give a "Strong Buy," two have a "Moderate Buy" rating, and 14 give a "Hold" rating. This consensus has remained fairly steady over the past three months. Currently, AVB is trading slightly above the average analyst price target of $208.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
