2024-01-31 22:12:10
AvalonBay Communities forecast full-year 2024 funds from operations (FFO) per share lower than Wall Street estimates on Wednesday as weak rental markets in Northern California offset strong rental yields in coastal suburban markets.
Shares of the company were down 4.75% in following-the-bell trading.
AvalonBay’s portfolio has experienced some rental weakness due to faltering demand and strong supply. This has offset steady rent growth in markets such as suburban New York, Southeast Florida and Washington, D.C.
The company expects full-year FFO, an important profitability metric closely followed by investors, to be between $10.42 and $10.92 per share, while analysts estimate that it should be $11.01 per share.
The real estate investment trust (REIT) reported FFO per share of $2.63 in the fourth quarter, below analyst estimates of $2.74, according to LSEG data. (Reporting by Ananta Agarwal and Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri)
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