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AvalonBay Communities, Inc. (NYSE: AVB) (the “Company”) reported today that Net Income Attributable to Common Stockholders (“Net Income”) for the quarter ended June 30, 2012 was $156,909,000. This resulted in Earnings per Share – diluted (“EPS”) of $1.63 for the quarter ended June 30, 2012, compared to EPS of $0.49 for the comparable period of 2011, an increase of 232.7%. For the six months ended June 30, 2012, EPS was $2.24 compared to $0.84 for the comparable period of 2011, an increase of 166.7%.
The increase in EPS for the quarter and six months ended June 30, 2012 over the respective prior year periods is due primarily to an increase in real estate sales and related gains in 2012 as well as increased Net Operating Income (“NOI”) from existing and newly developed and acquired communities and a decline in net interest expense.
Funds from Operations attributable to common stockholders - diluted (“FFO”) per share for the quarter ended June 30, 2012 increased 18.6% to $1.34 from $1.13 for the comparable period of 2011. FFO per share for the six months ended June 30, 2012 increased 18.1% to $2.61 from $2.21 for the comparable period of 2011. Adjusting for the non-routine items detailed in Attachment 14, FFO per share would have increased by 17.5% and 20.5% for the three and six months ended June 30, 2012, respectively over the prior year periods.
The Company’s FFO per share for the second quarter of 2012 exceeded the midpoint of the range for its second quarter 2012 Outlook by $0.02 per share due to savings in operating expenses. Approximately half of the year to date savings in operating expenses are timing related and are expected to be incurred in the second half of 2012.
The Company revised its full year 2012 outlook from the full year 2012 outlook provided in February 2012. The Company now expects FFO per share to be within a range of $5.39 to $5.53, with a midpoint of $5.46. The components of the revised outlook are detailed in the following table.
July 2012 Full-Year 2012 Outlook
Comparison to February 2012 Full-Year 2012 Outlook
Projected FFO per share 2012 - February 2012 Outlook $5.25 to $5.55 (1)
Investment activity (2)
Financing activity (2)
Projected FFO per share 2012 - July 2012 Outlook $5.39 to $5.53 (1)
(1) Represents the midpoint of the Company's outlook.
(2) Details of the changes in outlook can be found in this earnings release under the section titled "Third Quarter and Updated Full Year 2012 Outlook."
Commenting on the Company’s results, Tim Naughton, CEO and President, said, “These results demonstrate the continued strength in apartment fundamentals and the benefit of our development platform. We increased the midpoint of our full year 2012 outlook by six cents per share and now expect per share FFO growth of nearly 20% for the year.”