On October 25, 2023, AvalonBay Communities Inc (AVB, Financial) released its third-quarter 2023 operating results and financial outlook for the fourth quarter and full year 2023. The company reported a decrease in Earnings per Share (EPS) from $3.53 in Q3 2022 to $1.21 in Q3 2023, marking a 65.7% decline. However, Funds from Operations (FFO) per share saw a slight increase of 0.8% from $2.46 in Q3 2022 to $2.48 in Q3 2023. Core FFO per share also grew by 6.4% from $2.50 in Q3 2022 to $2.66 in Q3 2023.
Financial Performance
For the nine months ended September 30, 2023, EPS decreased by 24.1% from $6.40 in 2022 to $4.86 in 2023. On the other hand, FFO per share and Core FFO per share increased by 8.2% and 9.7% respectively, from $7.11 and $7.19 in 2022 to $7.69 and $7.89 in 2023.
Same Store Operating Results
Same Store total revenue increased by 5.0% to $642,093,000 for the three months ended September 30, 2023, compared to the prior year period. Same Store Residential rental revenue also saw a rise of 5.2% to $635,318,000. However, Same Store Residential operating expenses also increased by 5.0% to $202,828,000.
Development and Disposition Activity
During Q3 2023, AVB completed the development of three communities and started the construction of two apartment communities. The company also sold Avalon Columbia Pike, a wholly-owned community, for $105,000,000, resulting in a gain in accordance with GAAP of $22,345,000.
Liquidity and Capital Markets
As of September 30, 2023, the company had $508,571,000 in unrestricted cash and cash equivalents. The company did not have any borrowings outstanding under its $2,250,000,000 unsecured revolving credit facility and had $70,000,000 outstanding under its $500,000,000 unsecured commercial paper note program.
Outlook
The company's financial outlook for the fourth quarter and full year 2023 was also provided in the report, but specific details were not included in the provided information.
Explore the complete 8-K earnings release (here) from AvalonBay Communities Inc for further details.
