AvalonBay Communities, Inc. (AVB), headquartered in Arlington, Virginia, is an equity REIT in the business of developing, redeveloping, acquiring, and managing apartment communities in leading metropolitan areas. Valued at $31.4 billion by market cap, the company has a 30-year track record in some of the best U.S. markets across 12 states and Washington, DC. The leading multifamily REIT is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Monday, Nov. 4.
Ahead of the event, analysts expect AVB to report a profit of $2.71 per share on a diluted basis, up 1.9% from $2.66 per share in the year-ago quarter. The company beat the consensus estimate in each of the last four quarters.
For the full year, analysts expect AVB to report FFO of $11.01, up 3.6% from $10.63 in fiscal 2023. Its FFO is expected to rise 4.9% year over year to $11.55 in fiscal 2025.
AVB stock has underperformed the S&P 500’s ($SPX) 32.2% gains over the past 52 weeks, with shares up 26.7% during this period. Similarly, it underperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 28.7% gains over the same time frame.
AVB's performance was impacted by headwinds from increasing operating expenses and market volatility.
On Jul. 31, AVB shares closed down marginally after reporting its Q2 results. Its core FFO of $2.77 surpassed Wall Street estimates of $2.71. The company’s revenue was $726 million, surpassing Wall Street forecasts of $718.5 million. For Q3, AVB expects its core FFO to be between $2.66 and $2.76. The company expects full-year core FFO to be between $10.92 and $11.12.
Analysts’ consensus opinion on AVB stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 25 analysts covering the stock, eight advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, and 15 give a “Hold.” AVB’s average analyst price target is $225.14, indicating a potential upside of 3.3% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
