AvalonBay: Q2 Earnings Snapshot

ARLINGTON, Va. (AP) — ARLINGTON, Va. (AP) — AvalonBay Communities Inc. (AVB) on Wednesday reported a key measure of profitability in its second quarter. The results exceeded Wall Street expectations.

The real estate investment trust, based in Arlington, Virginia, said it had funds from operations of $394.6 million, or $2.77 per share, in the period.

The average estimate of 10 analysts surveyed by Zacks Investment Research was for funds from operations of $2.71 per share.

Funds from operations is a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization.

The company said it had net income of $253.9 million, or $1.78 per share.

The apartment building owner posted revenue of $726 million in the period, also surpassing Street forecasts. Seven analysts surveyed by Zacks expected $718.5 million.

For the current quarter ending in September, AvalonBay expects its per-share funds from operations to range from $2.66 to $2.76.

The company expects full-year funds from operations in the range of $10.92 to $11.12 per share.

The company's shares have risen 9.5% since the beginning of the year, while the S&P's 500 index has risen 16%. In the final minutes of trading on Wednesday, shares hit $204.92, an increase of nearly 9% in the last 12 months.

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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on AVB at https://www.zacks.com/ap/AVB