By Josh Beckerman and Tess Stynes
AvalonBay Communities Inc. said its first-quarter earnings rose
47% amid an asset-sale gain and as higher average rental rates
boosted revenue.
For the current quarter, the apartment real-estate investment
trust forecast funds from operations of $1.92 to $1.96 a share and
core FFO of $1.80 to $1.84 a share.
Analysts expect FFO of $1.82 a share and adjusted FFO of $1.84 a
share, according to a Thomson Reuters survey.
A January fire at an Edgewater, N.J., AvalonBay property
destroyed more than 200 apartments. The company expected the fire
would affect its 2015 funds from operations by 10 cents a
share.
AvalonBay has said losses related to the fire would be
substantially covered by its insurance policies, subject to
deductibles and a self-insured portion of its property
insurance.
AvalonBay said average rental rates increased 4.3% in its
"established communities" portfolio, while occupancies were
flat.
The company also sold its Avalon on Stamford Harbor community,
which contains 323 apartment homes and a marina with 74 boat slips,
for $115.5 million, resulting in a gain of $70.9 million.
Overall, AvalonBay reported a profit of $208.1 million, or $1.56
a share, compared with $141.6 million, or $1.09 a share, a year
earlier.
Per-share FFO rose to $1.88 from $1.64, compared with the
company's projection of $1.86 to $1.90. Excluding one-time items,
per-share FFO rose to $1.75 from $1.63, compared with expectations
for $1.71 to $1.75.
Revenue, including discontinued operations, increased 10% to
$442.4 million. Analysts expected $440.9 million.
Write to Josh Beckerman at josh.beckerman@wsj.com and Tess
Stynes at tess.stynes@wsj.com
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