Sep 30, 2021

AvalonBay Q3 2021 Earnings Report

Net income decreased due to a decrease in gain on sale of real estate. FFO per share decreased, while Core FFO per share remained unchanged compared to the prior year period.

Key Takeaways

AvalonBay Communities, Inc. reported a decrease in net income and FFO per share for the third quarter of 2021, while Core FFO per share remained unchanged. Same Store total revenue increased by 1.2%.

Net Income Attributable to Common Stockholders for the three months ended September 30, 2021 was $78,914,000.

Earnings per Share – diluted (“EPS”) for the three months ended September 30, 2021 decreased 46.7% to $0.56 from $1.05 for the prior year period.

Funds from Operations attributable to common stockholders - diluted (“FFO”) per share for the three months ended September 30, 2021 decreased 3.4% to $1.96 from $2.03 for the prior year period.

Core FFO per share for the three months ended September 30, 2021 remained unchanged from the prior year period at $2.06.

Total Revenue
$581M
Previous year: $567M
+2.4%
EPS
$2.06
Previous year: $2.06
+0.0%
Total Communities
293
Previous year: 294
-0.3%
Total Apartment Homes
87.42K
Previous year: 86.68K
+0.9%
Gross Profit
$360M
Previous year: $355M
+1.5%
Cash and Equivalents
$436M
Previous year: $87.5M
+397.9%
Total Assets
$19.5B
Previous year: $19.1B
+1.7%

AvalonBay

AvalonBay

Forward Guidance

The Company expects the following for its fourth quarter and full year 2021 financial outlook.

Positive Outlook

  • Projected EPS for Q4 2021 is expected to be between $2.25 and $2.35.
  • Projected FFO per share for Q4 2021 is expected to be between $2.17 and $2.27.
  • Projected Core FFO per share for Q4 2021 is expected to be between $2.19 and $2.29.
  • Same Store Residential rental revenue change for Q4 2021 is expected to be between 4.5% and 5.5%.
  • Same Store Residential NOI change for Q4 2021 is expected to be between 5.5% and 7.5%.

Challenges Ahead

  • Projected EPS for the full year 2021 is expected to be between $7.04 and $7.14.
  • Projected FFO per share for the full year 2021 is expected to be between $8.03 and $8.13.
  • Projected Core FFO per share for the full year 2021 is expected to be between $8.18 and $8.28.
  • Same Store Residential rental revenue change for the full year 2021 is expected to be between (2.3)% and (1.9)%.
  • Same Store Residential NOI change for the full year 2021 is expected to be between (5.1)% and (4.3)%.