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AvalonBay Q4 FFO & Revenues Miss Estimates, Dividend Raised
AVBAvalonBay Communities(AVB) ZACKS·2025-02-06 16:36

Core Insights - AvalonBay Communities (AVB) reported fourth-quarter 2024 core funds from operations (FFO) per share of 2.80,missingtheZacksConsensusEstimateof2.80, missing the Zacks Consensus Estimate of 2.83, but reflecting a 2.2% increase year-over-year [1] - Total revenues for the quarter were 740.5million,slightlybelowtheZacksConsensusEstimate,butup5.1740.5 million, slightly below the Zacks Consensus Estimate, but up 5.1% year-over-year [2] - For full-year 2024, core FFO per share was 11.01, a 3.6% increase year-over-year, but also below the Zacks Consensus Estimate of 11.04[3]FinancialPerformance−Same−storeresidentialrevenuesincreasedby3.211.04 [3] Financial Performance - Same-store residential revenues increased by 3.2% year-over-year to 670.1 million, while same-store residential operating expenses rose by 5.4% to 208.1million,leadingtoa2.3208.1 million, leading to a 2.3% increase in same-store residential NOI to 462.1 million [4] - Same-store average revenue per occupied home rose to 3,040inthefourthquarter,upfrom3,040 in the fourth quarter, up from 3,033 in the previous quarter and 2,944intheyear−agoquarter[5]−Propertymanagementandotherindirectoperatingexpensesincreasedby40.12,944 in the year-ago quarter [5] - Property management and other indirect operating expenses increased by 40.1% year-over-year to 51.4 million, and interest expenses rose by 19.2% year-over-year to 59million[5]DevelopmentandAcquisitions−AsofDecember31,2024,AvalonBayhad17consolidateddevelopmentcommunitiesunderconstruction,expectedtocontain6,004apartmenthomesand59,000squarefeetofcommercialspace,withanestimatedtotalcapitalcostof59 million [5] Development and Acquisitions - As of December 31, 2024, AvalonBay had 17 consolidated development communities under construction, expected to contain 6,004 apartment homes and 59,000 square feet of commercial space, with an estimated total capital cost of 2.25 billion [6] - In the fourth quarter, AVB acquired two wholly owned communities for a total of 185.5million[7]−Thecompanysoldthreewhollyownedcommunitiesfor185.5 million [7] - The company sold three wholly owned communities for 212.5 million, resulting in a GAAP gain of 121.8million[8]BalanceSheetandDebtPosition−AsofDecember31,2024,AvalonBayhad121.8 million [8] Balance Sheet and Debt Position - As of December 31, 2024, AvalonBay had 108.6 million in unrestricted cash and cash equivalents and 158.5millioninrestrictedcash,withnoborrowingsoutstandingunderits158.5 million in restricted cash, with no borrowings outstanding under its 2.25 billion unsecured revolving credit facility or 500millionunsecuredcommercialpapernoteprogram[9]−Theannualizednetdebt−to−coreEBITDArefortheOctober−Decemberperiodwas4.2times,withanunencumberedNOIof95500 million unsecured commercial paper note program [9] - The annualized net debt-to-core EBITDAre for the October-December period was 4.2 times, with an unencumbered NOI of 95% for the year ended December 31, 2024 [10] Future Guidance - For full-year 2025, AVB expects core FFO per share to be between 11.14 and 11.64,indicatinga3.511.64, indicating a 3.5% increase at the midpoint from the 2024 reported number [12] - Management anticipates same-store residential revenue growth of 2-4% and an operating expense increase of 3-5.2%, with same-store residential NOI projected to expand by 1.3-3.5% [12] Dividend Announcement - Concurrent with its fourth-quarter earnings release, AvalonBay declared a first-quarter 2025 dividend of 1.75 per share, a 2.9% increase over the prior quarter's dividend [13]