AvalonBay forecasts full-year profit above estimates on new units, same‑store gains

Feb 4 (Reuters) - U.S.-based real estate investment trust AvalonBay Communities AVB.N forecast annual profit above Wall Street estimates on Wednesday, as support from newly completed apartments and modest same-store revenue growth helped offset rising operating costs.

The company expects 2026 profit to be in the range of $6.33 to $6.83 per share, compared with analysts' estimates of $5.25 according to data compiled by LSEG.

AvalonBay's properties in New England, Florida, New York and Washington, D.C. - where rental oversupply has been less severe - continue to see strong demand and steady rent growth.

It expects funds from operations, a key profitability metric watched closely by investors, to be in a range of $10.80 to $11.30 per share for 2026. Analysts expect the company to post FFO of $11.60 per share for 2026.

The company also expects first-quarter FFO at $2.69 to $2.79 per share, below estimates of $2.89.

It reported fourth-quarter core FFO of $2.85 per share, from $2.80 a year earlier.

Same-store residential revenue rose 1.8% in the fourth quarter.

The company reported a per-share profit of $1.17 for the quarter ended December 31 , compared with $1.98 a year earlier.

Shares of the company were down 2% in aftermarket trading.