AvalonBay Communities’ Q4 2024 Earnings: What to Expect

AvalonBay Communities, Inc. (AVB), headquartered in Arlington, Virginia, is an equity REIT in the business of developing, redeveloping, acquiring, and managing apartment communities in leading metropolitan areas. Valued at $30.3 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 fourth-quarter earnings for 2024 on Wednesday, Jan. 29. 

Ahead of the event, analysts expect AVB to report a profit of $2.82 per share on a diluted basis, up 2.9% from $2.74 per share in the year-ago quarter. The company beat the consensus estimate in each of the last four quarters. 

For the full year, analysts expect AVB to report FFO of $11.04, up 3.9% from $10.63 in fiscal 2023. Its FFO is expected to rise 4.8% year over year to $11.57 in fiscal 2025. 

AVB stock has underperformed the S&P 500’s ($SPX) 25.8% gains over the past 52 weeks, with shares up 15.6% during this period. However, it outperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 1.8% gains over the same time frame.

On Nov. 4, AVB shares closed up more than 1% after reporting its Q3 results. Its FFO of $2.74 surpassed Wall Street estimates of $2.71. The company’s revenue of $734.3 million, surpassing Wall Street forecasts of $731.7 million. For Q4, AVB expects its FFO to range from $2.78 to $2.88. The company expects full-year FFO to be between $10.99 and $11.09.

Analysts’ consensus opinion on AVB stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, nine advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and 13 give a “Hold.” AVB’s average analyst price target is $239.95, indicating a potential upside of 13.6% from the current levels.