AvalonBay forecast second-quarter FFO below estimates, shares fall
April 30 - U.S. based real estate investment trust (REIT) AvalonBay Communities AVB.N on Wednesday forecast second-quarter core funds from operation (FFO) below Wall Street estimates, as its rental business faced pressure from softer-than-expected consumer demand and elevated supply in Sunbelt regions.
Shares of the company were down more than 4% after the bell.
The REIT expects second quarter core FFO per share to be between $2.72 and $2.82, with the midpoint below analysts' average estimate of $2.81, according to LSEG data.
AvalonBay's portfolio, which includes properties in Seattle, Northern California, San Francisco and San Jose, has been impacted by elevated supply and slower-than-expected demand.
The company reported first-quarter core FFO of $2.83, in-line with analysts estimates.
Same-store residential revenue grew 3% to $693.1 million in the quarter ended March 31, while same-store residential operating expenses grew by 4% to $214.7 million.
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