AvalonBay forecasts 2024 FFO per share below estimates on weakness in rental markets
Jan 31 (Reuters) - AvalonBay Communities forecast full-year 2024 funds from operation (FFO) per share below Wall Street estimates on Wednesday, as weakness in rental markets in Northern California offset strong rental yields in suburban coastal markets.
Shares of the company were down 4.75% in trading after the bell.
AvalonBay's portfolio has seen some rental weakness due to flailing demand and strong supply. This offset steady rental growth in markets such as suburban New York, Southeast Florida and Washington D.C.
The company expects full-year FFO, an important profitability metric watched closely by investors, to be in the range of $10.42-$10.92 per share, compared with analysts' estimates of $11.01 per share.
The real estate investment trust (REIT) reported fourth -quarter FFO per share of $2.63, below analysts' estimates of $2.74, according to LSEG data. (Reporting by Ananta Agarwal and Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri)
