ARLINGTON, Va. - AvalonBay Communities, Inc. (NYSE: NYSE:AVB), an S&P 500 company specializing in the development, acquisition, and management of apartment communities, has disclosed its financial results for the fourth quarter and full year ended December 31, 2024. The company saw a 16.5% increase in Earnings per Share (EPS) for Q4 2024 compared to Q4 2023, with EPS rising from $1.70 to $1.98. Full-year EPS also grew by 15.9% from $6.56 in 2023 to $7.60 in 2024.
While Funds from Operations (FFO) per share remained unchanged at $2.63 for the quarter, Core FFO per share experienced a modest increase of 2.2% year-over-year, reaching $2.80 in Q4 2024. For the full year, FFO per share rose by 6.4%, and Core FFO per share improved by 3.6%. The company maintains strong operational metrics, with a healthy revenue growth of 7.84% and an impressive gross profit margin of 64.38% in the last twelve months.
AvalonBay’s Same Store Residential Net Operating Income (NOI) increased by 2.3% for the quarter and 2.7% for the full year. The company’s development activity included the completion of four wholly-owned communities with a total capital cost of $636 million and the initiation of construction on two new communities expected to contain 600 apartment homes.
The company sold three wholly-owned communities in Q4 2024 for $212.5 million, marking its exit from the Connecticut market with the January 2025 sale of Avalon Wilton on River Road. On the acquisition front, AvalonBay acquired two communities during the quarter, adding 473 apartment homes to its portfolio.
AvalonBay’s liquidity remains strong, with $108.6 million in unrestricted cash and no outstanding borrowings under its $2.25 billion unsecured revolving credit facility or its $500 million unsecured commercial paper note program. The company’s Net Debt-to-Core EBITDAre ratio was 4.2 times for Q4 2024, and Unencumbered NOI for the year was 95%.
The company’s Board of Directors declared a Q1 2025 dividend of $1.75 per share, a 2.9% increase over the prior quarterly dividend. InvestingPro data reveals that AVB has maintained dividend payments for 31 consecutive years, currently offering a 3.08% yield. For the first quarter and full year 2025, the company provided an earnings outlook with projected EPS ranging from $1.62 to $1.72 for Q1 and $8.24 to $8.74 for the full year. With an overall Financial Health Score of "GREAT" from InvestingPro, AVB demonstrates strong fundamentals despite trading near its 52-week high.Investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research report, available among 1,400+ top US stocks covered by the platform. Projected FFO per share is expected to range from $2.73 to $2.83 for Q1 and $11.07 to $11.57 for the full year, with projected Core FFO per share ranging from $2.75 to $2.85 for Q1 and $11.14 to $11.64 for the full year.
This article is based on a press release statement from AvalonBay Communities, Inc.
In other recent news, AvalonBay Communities has been the subject of various analyst ratings and has reported promising Q3 results. Morgan Stanley (NYSE:MS) downgraded AvalonBay’s stock from Overweight to Equal-weight, adjusting the price target to $223 from $236, citing a higher premium compared to other apartment stocks. Meanwhile, Mizuho (NYSE:MFG) Securities upgraded AvalonBay’s stock from Neutral to Outperform, raising the price target slightly to $242 from $239, and selected AvalonBay as their top apartment REIT pick for 2025, backed by its strong growth prospects.
Furthermore, JPMorgan (NYSE:JPM) shifted its stance on AvalonBay from Neutral to Overweight, with an increased price target of $262 from $247, highlighting a promising outlook for 2025. The firm recognized AvalonBay for having the highest earn-in compared to its peers and anticipated significant growth in other income streams.
In addition to these ratings, AvalonBay reported solid growth in its Q3 2024 earnings, surpassing core Funds From Operations (FFO) guidance and raising full-year core FFO guidance to $11.04 per share. The company also emphasized its strong financial performance and strategic plans, including an anticipated yield of 6.3% on new developments and a shift towards a predominantly suburban portfolio. These are the recent developments surrounding AvalonBay Communities.
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