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AvalonBay Communities, Inc. Announces Second Quarter 2013 Operating Results And Updates Full Year 2013 Financial Outlook

Stocks in this article: AVB

AvalonBay Communities, Inc. (NYSE: AVB) (the “Company”) reported today that Net Income Attributable to Common Stockholders (“Net Income”) for the quarter ended June 30, 2013 was $36,218,000. This resulted in Earnings per Share – diluted (“EPS”) of $0.28 for the quarter ended June 30, 2013, compared to EPS of $1.63 for the comparable period of 2012, a decrease of 82.8%. For the six months ended June 30, 2013, EPS was $0.89 compared to $2.24 for the comparable period of 2012, a decrease of 60.3%.

The decreases in EPS for the three and six months ended June 30, 2013 from the respective prior year periods are due primarily to additional depreciation expense and expensed transaction costs associated with the Archstone acquisition (as described in our first quarter earnings release dated April 30, 2013). The decrease in EPS for the three months ended June 30, 2013 from the prior year period is also due to a decrease in gains from dispositions of real estate assets. The decreases in both the three and six months ended June 30, 2013 are partially offset by an increase in Net Operating Income (“NOI”) from communities acquired through the Archstone acquisition and existing and newly developed communities.

Funds from Operations attributable to common stockholders - diluted (“FFO”) per share for the quarter ended June 30, 2013 increased 15.7% to $1.55 from $1.34 for the comparable period of 2012. FFO per share for the six months ended June 30, 2013 decreased 9.6% to $2.36 from $2.61 from the prior year period. Adjusting for non-routine items as detailed in the definitions of this release, FFO per share would have increased by 20.9% and 18.6% for the three and six months ended June 30, 2013, respectively, over the prior year periods.

The following table compares the Company’s results for the three months ended June 30, 2013, for both FFO per share as well as for FFO per share adjusted for non-routine items, to the outlook provided in April 2013.

           
Second Quarter 2013 Results

Comparison to April 2013 Outlook

Per Share

FFO As

FFO

Adjusted

 
Projected FFO per share-April 2013 Outlook (1)(2) $ 1.51 $ 1.58
Community NOI 0.05 0.05
Overhead and other   (0.01 )   (0.01 )
 
FFO per share - actual (1) $ 1.55   $ 1.62  
 

(1) As Adjusted amounts adjusted for non-routine items presented in the definitions of this release.

(2) Represents the mid-point of the Company's April 2013 outlook.

Commenting on the Company’s results, Tim Naughton, Chairman and CEO, said, “This quarter we posted adjusted FFO growth of over 20%, driven by better than expected results from our operating portfolio as well as leasing of new development communities. Same store revenue growth topped 5%, while NOI growth totaled 6.6%, both exceeding expectations. Strong multi-family operating fundamentals support our revised higher outlook for revenue, NOI and adjusted FFO growth.”

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