AvalonBay (AVB) Q1 FFO & Revenues Beat Estimates, View Raised

Core Insights - AvalonBay Communities (AVB) reported a first-quarter 2024 core FFO per share of $2.70, exceeding the Zacks Consensus Estimate of $2.64, and reflecting a 5.1% increase year-over-year [1] - Total revenues for the quarter reached $712.9 million, surpassing the Zacks Consensus Estimate of $706.6 million, and marking a 5.7% year-over-year growth [1] Quarterly Performance - Same-store total revenues increased by 4.3% year-over-year to $677.2 million, while same-store residential revenues rose by 4.2% to $669.2 million [2] - Same-store residential operating expenses increased by 5.2% to $205.5 million, resulting in a same-store residential NOI growth of 3.7% to $463.7 million [2] - The same-store average revenue per occupied home rose to $2,967, up from $2,842 in the first quarter of 2023, while economic occupancy decreased by 20 basis points to 95.9% [2] Development and Capital Expenditure - As of March 31, 2024, AvalonBay had 17 consolidated development communities under construction, expected to contain 6,064 apartment homes and 59,000 square feet of commercial space, with an estimated total capital cost of $2.5 billion [2] Financial Position - AvalonBay reported $287.9 million in unrestricted cash and cash equivalents as of March 31, 2024, with no outstanding borrowings under its $2.25 billion unsecured revolving credit facility or $500 million unsecured commercial paper note program [3] - The annualized net debt-to-core EBITDAre ratio for the January-March period was 4.3 times, with an unencumbered NOI of 95% for the three months ended March 31, 2024 [3] 2024 Outlook - For Q2 2024, AvalonBay expects core FFO per share in the range of $2.63-$2.73, with the full year projection raised to a range of $10.71 to $11.11, indicating a 2.6% increase at the midpoint compared to earlier guidance [4] - Management anticipates same-store residential revenue growth of 3.1% at the midpoint, up from 2.6%, while operating expenses are projected to increase by 5.4%, down from 5.6% [4]