AvalonBay Communities, Inc. (AVB), headquartered in Arlington, Virginia, is an equity REIT that develops, redevelops, acquires, and manages apartment communities in leading metropolitan areas. Valued at $27.5 billion by market cap, the company has a 30-year track record in some of the best U.S. markets across 12 states and Washington, DC. The leading multifamily REIT is expected to announce its fiscal first-quarter earnings for 2025 after the market closes on Wednesday, Apr. 30.
Ahead of the event, analysts expect AVB to report an FFO of $2.80 per share on a diluted basis, up 3.7% from $2.70 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
For the full year, analysts expect AVB to report FFO of $11.43, up 3.8% from $11.01 in fiscal 2024. Its FFO is expected to rise 4.9% year over year to $11.99 in fiscal 2026.
AVB stock has outperformed the S&P 500’s ($SPX) 3.2% gains over the past 52 weeks, with shares up 3.8% during this period. Similarly, it outperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 3.4% gains over the same time frame.
AVB’s strong performance was driven by the acquisition of two new wholly owned communities – Avalon Townhomes and Avalon Lowry. Additionally, the company sold three communities, resulting in a gain of $121.8 million.
On Feb. 5, AVB shares closed up more than 1% after reporting its Q4 results. Its core FFO of $2.80 per share, fell short of consensus estimates of $2.83 per share. The company’s revenue was $740.5 million, missing Wall Street forecasts of $742.3 million. The company expects full-year core FFO in the range of $11.14 to $11.64 per share.
Analysts’ consensus opinion on AVB stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 14 give a “Hold.” AVB’s average analyst price target is $236.42, indicating a potential upside of 22.5% from the current levels.
