UDR Inc. (UDR) reported fourth-quarter 2023 funds from operations as adjusted (FFOA) per share of 63 cents, in line with the Zacks Consensus Estimate.Quarterly revenues from rental income were $410.9 million, which outpaced the Zacks Consensus Estimate of $409.4 million. Total revenues came in at $413.3 million.Results reflect year-over-year growth in revenues, driven by healthy operating trends and past accretive external growth investments. However, a rise in property operating and maintenance and interes ...

elxeneize Following a spectacular year of total returns and relative outperformance in 2021, multifamily REITs have underperformed the MSCI U.S. REIT Index (Bloomberg: RMZ). The underperformance for multifamily REITs has been a product of both the macro environment (rising interest rates) and record high apartment deliveries, especially in Sun Belt markets. While the fears are for the most part justified, the underperformance looks to be overdone, especially for those predominantly with Sun Belt exposur ...

Financial Data and Key Metrics Changes - AvalonBay Communities achieved 8.6% core FFO growth for 2023, with same-store revenue up 6.3% and NOI increasing by 6.2% [5][6] - The company expects 1.4% growth in core FFO per share for 2024, driven by same-store portfolio and stabilizing lease-up communities [12][88] - Projected revenue growth for the same-store residential portfolio is 2.6%, with NOI growth of 1.25% for the year [12] Business Line Data and Key Metrics Changes - The company reported $575 million in completions across six projects, delivering stabilized yields of 7.1% [6] - Incremental annual NOI from operating initiatives exceeded expectations, delivering $19 million, which was $7 million or almost 60% higher than anticipated [6] - The structured investment business commitments total $192 million, expected to deliver an uplift in earnings this year and beyond [7] Market Data and Key Metrics Changes - In established regions, new apartment deliveries are expected to be 1.6% of existing stock in 2024, declining to 1.4% in 2025, contrasting with the Sunbelt, which will have twice the level of supply [11] - Revenue growth in established regions is expected to be more than double that of expansion regions due to lower new supply levels [15] Company Strategy and Development Direction - AvalonBay aims to shift 80% of its portfolio to suburban areas from 70% currently, and increase its expansion regions' portfolio to 25% from 8% [9] - The company plans to continue its operating model transformation, targeting an incremental annual NOI of $80 million from operating initiatives [8] - The focus for 2024 includes executing ongoing projects and capitalizing on attractive development opportunities in a challenging market [9][20] Management's Comments on Operating Environment and Future Outlook - Management anticipates a slowing economic environment in 2024, with modest job growth expected [10] - The company is prepared to adjust its strategies based on evolving economic conditions and mixed signals in the market [10] - AvalonBay expects to be well-positioned in established regions due to stable demand and limited supply outlook [11] Other Important Information - The company plans total capital uses of $1.4 billion in 2024, with $1.1 billion in investment spend and $300 million in debt maturities [12] - AvalonBay's balance sheet remains strong, with tight credit spreads among peers providing a financial advantage [7] Q&A Session Summary Question: Can you discuss the blended rent outlook by region and how it may differ between the first and second half of the year? - Management expects a blended rent change of roughly 2% in 2024, with stronger rent change anticipated in the second half of the year [26] Question: Where do you see the most variability in revenue and where can you potentially pull back on spending? - Revenue variability is largely driven by the macroeconomic environment, while expense increases are primarily due to utilities and property taxes [28][30] Question: What factors could drive the $870 million development starts to the high end or cause delays? - Development starts are expected to be back-loaded in the year, influenced by deal economics and market conditions [34] Question: Can you provide an estimate for the earnings contribution from the development pipeline this year? - The estimated earnings accretion from development undergoing lease-up is about $0.18 per share, equating to approximately 170 basis points of earnings growth [50] Question: How does Avalon Connect impact revenue and what is the expected ramp-up? - Avalon Connect is expected to contribute significantly to other rental revenue, with a ramp-up mirroring lease expirations [78] Question: What are the underlying projections for expense growth components? - Property taxes are expected to grow in the mid-4% range, while insurance and utilities are projected to see double-digit growth [82]

AvalonBay Communities (AVB) reported a fourth-quarter 2023 core funds from operations (FFO) per share of $2.74, beating the Zacks Consensus Estimate of $2.73. Moreover, the figure climbed 5.8% from the prior-year quarter’s tally.The quarterly results reflect a year-over-year increase in same-store residential rental revenues. The same-store average rental revenue per occupied home reported a rise, though occupancy declined.Total revenues in the quarter came in at $704.7 million, outpacing the Zacks Consensu ...

Avalon Princeton Circle Princeton, NJ INVESTOR TELECONFERENCE AVA Esterra Park Redmond, WA PRESENTATION Fourth Quarter 2023 February 1, 2024 1 Avalon Chino Hills Chino Hills, CA See Appendix for information about forward-looking s ...

AvalonBay Communities (AVB) reported $704.71 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 5.2%. EPS of $2.74 for the same period compares to $1.72 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $701.67 million, representing a surprise of +0.43%. The company delivered an EPS surprise of +0.37%, with the consensus EPS estimate being $2.73.While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

AvalonBay Communities (AVB) came out with quarterly funds from operations (FFO) of $2.74 per share, beating the Zacks Consensus Estimate of $2.73 per share. This compares to FFO of $2.59 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 0.37%. A quarter ago, it was expected that this apartment building owner would post FFO of $2.64 per share when it actually produced FFO of $2.66, delivering a surprise of 0.76%.Over the last four qua ...

ARLINGTON, Va.--(BUSINESS WIRE)--AvalonBay Communities, Inc. (NYSE: AVB) (the “Company”) reported Earnings per Share – diluted (“EPS”), Funds from Operations attributable to common stockholders - diluted (“FFO”) per share and Core FFO per share (as defined in this release) for the three months and year ended December 31, 2023 and 2022 as detailed below.     Q4 2023   Q4 2022   % Change EPS $ 1.70   $ 1.72   (1.2 )% FFO per share (1) $ 2.63 ...

AvalonBay Communities, Inc. (AVB) , a leading real estate investment trust (REIT) specializing in the development, acquisition and management of multifamily properties, is set to announce its fourth-quarter and full-year 2023 results after the closing bell on Jan 31.In the last reported quarter, this residential REIT delivered a surprise of 0.76% in terms of core funds from operations (FFO) per share. The quarterly results reflected a year-over-year increase in same-store residential rental revenues, driven ...

ARLINGTON, Va.--(BUSINESS WIRE)--AvalonBay Communities, Inc. (the “Company”) (NYSE: AVB) announced today the naming of Alaine Walsh as Executive Vice President – Human Capital and Administration and the retirement and associated succession plans for two long-tenured finance officers. The Company announced that Alaine Walsh, currently the Company’s Senior Vice President – Operations and Investment Services, has been promoted to Executive Vice President – Human Capital and Administration. Ms. Walsh joined ...