AvalonBay Communities' Quarterly Earnings Preview: What You Need to Know
AvalonBay Communities, Inc. (AVB), headquartered in Arlington, Virginia, is an equity REIT that develops, redevelops, acquires, and manages apartment communities in leading metropolitan areas. Valued at $27.5 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 first-quarter earnings for 2025 after the market closes on Wednesday, Apr. 30.
Ahead of the event, analysts expect AVB to report an FFO of $2.80 per share on a diluted basis, up 3.7% from $2.70 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect AVB to report FFO of $11.43, up 3.8% from $11.01 in fiscal 2024. Its FFO is expected to rise 4.9% year over year to $11.99 in fiscal 2026.
AVB stock has outperformed the S&P 500’s ($SPX) 3.2% gains over the past 52 weeks, with shares up 3.8% during this period. Similarly, it outperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 3.4% gains over the same time frame.
AVB's strong performance was driven by the acquisition of two new wholly owned communities - Avalon Townhomes and Avalon Lowry. Additionally, the company sold three communities, resulting in a gain of $121.8 million.
On Feb. 5, AVB shares closed up more than 1% after reporting its Q4 results. Its core FFO of $2.80 per share, fell short of consensus estimates of $2.83 per share. The company’s revenue was $740.5 million, missing Wall Street forecasts of $742.3 million. The company expects full-year core FFO in the range of $11.14 to $11.64 per share.
Analysts’ consensus opinion on AVB stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 14 give a “Hold.” AVB’s average analyst price target is $236.42, indicating a potential upside of 22.5% from the current levels.
On the date of publication, Neha Panjwani 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.