Jun 30, 2022

AvalonBay Q2 2022 Earnings Report

Second quarter operating results were announced.

Key Takeaways

AvalonBay Communities, Inc. reported a decrease in Earnings per Share (EPS) to $0.99, a decrease of 69.2% from the prior year period, primarily attributable to a decrease in gain on sale of real estate, partially offset by an increase in Same Store Residential NOI. Funds from Operations (FFO) per share increased 22.3% to $2.41, and Core FFO per share increased 22.7% to $2.43.

Net Income Attributable to Common Stockholders was $138,691,000.

EPS decreased 69.2% to $0.99 from $3.21 for the prior year period.

FFO per share increased 22.3% to $2.41 from $1.97 for the prior year period.

Core FFO per share increased 22.7% to $2.43 from $1.98 for the prior year period.

Total Revenue
$645M
Previous year: $562M
+14.7%
EPS
$2.43
Previous year: $1.98
+22.7%
Total Apartment Homes
89.04K
Gross Profit
$417M
Previous year: $349M
+19.5%
Cash and Equivalents
$260M
Previous year: $487M
-46.6%
Total Assets
$19.8B
Previous year: $19.3B
+2.3%

AvalonBay

AvalonBay

Forward Guidance

For its third quarter and full year 2022 financial outlook, the Company expects Projected EPS, Projected FFO and Projected Core FFO.

Positive Outlook

  • Projected EPS for Q3 2022 is expected to be between $3.48 and $3.58.
  • Projected FFO per share for Q3 2022 is expected to be between $2.49 and $2.59.
  • Projected Core FFO per share for Q3 2022 is expected to be between $2.47 and $2.57.
  • Projected EPS for the full year 2022 is expected to be between $7.53 and $7.73.
  • Projected FFO per share for the full year 2022 is expected to be between $9.74 and $9.94.

Challenges Ahead

  • Risks related to the COVID-19 pandemic
  • Potential abandonment of development or redevelopment opportunities
  • Adverse capital and credit market conditions
  • Changes in local employment conditions and demand for apartment homes
  • Delays in completing development, redevelopment, and/or lease-up