AvalonBay Communities Inc. reported year-over-year gains in funds from operations and core FFO in the second quarter and raised its full-year guidance for both metrics.
For the quarter, the company reported FFO attributable to common stockholders of $305.8 million, or $2.21 per share, up 16.3% on a per-share basis from $262.3 million, or $1.90 per share, in the year-ago period. Core FFO attributable to common stockholders totaled $307.6 million, or $2.23 per share, up 6.7% on a per-share basis from $288.4 million, or $2.09 per share, a year earlier.
The S&P Capital IQ consensus FFO-per-share estimate for the second quarter was $2.20.
In reporting its earnings, the company released third-quarter FFO-per-share guidance in a range of $2.20 to $2.26 and core FFO-per-share guidance of $2.22 to $2.28. For the full year, the company now expects FFO per share in the range of $8.82 to $9.02 and core FFO per share in the range of $8.87 to $9.07.
The S&P Capital IQ consensus FFO-per-share estimates for the third quarter and full year are $2.26 and $8.94, respectively.
Total revenue for the second quarter increased by $38.7 million, or 7.3%, to $569.2 million.
During the quarter, the company sold four wholly owned properties: The Avalon Blue Hills in Randolph, Mass.; the Avalon Canton at Blue Hills in Canton, Mass.; the Eaves North Quincy in Quincy, Mass.; and the Avalon Anaheim Stadium in Anaheim, Calif. The properties contain an aggregate of 947 units and 12,000 square feet of retail space and were sold for a total of $307.1 million.
Also during the quarter, AvalonBay began construction of three communities, which will comprise 828 units, for a total cost of $265.0 million: Avalon Saugus in Saugus, Mass.; Avalon Doral in Doral, Fla.; and Avalon Norwood in Norwood, Mass.
The company also completed construction of AVA Wheaton in Wheaton, Md., and Avalon Maplewood in Maplewood, N.J., for $141.0 million.