NYSE$AVB

AvalonBay Communities Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

AvalonBay's financial performance for Q2 2023 was marked by significant growth in EPS, driven by same-store residential NOI and gains from real estate sales.

AvalonBay Communities, Inc. reported a strong second quarter in 2023, with a notable increase in Earnings per Share (EPS) and Funds from Operations (FFO) per share compared to the previous year. The company's Same Store Residential Net Operating Income (NOI) also saw growth, contributing to the positive results.

  • EPS increased to $2.59, a 161.6% increase compared to Q2 2022.
  • FFO per share reached $2.67, reflecting a 10.8% increase year-over-year.
  • Core FFO per share was $2.66, up by 9.5% compared to the prior year.
  • Same Store Residential NOI increased by 5.4%, driven by revenue growth and operating expense management.

Headline financials

Total Revenue

$691M

Previous: $645M+7.2%
EPS (adj)

$2.66

Previous: $2.43+9.5%
Total Apartment Homes

88.7K

Previous: 89.0K-0.4%
Total Communities

294

No prior period
Capital Expenditures

-$527M

Previous: -$644M+18.1%
Free Cash Flow

-$159M

Previous: -$505M+68.5%
Net Income

$368M

Previous: $139M+165.4%
Operating Income

$471M

Previous: $444M+6.0%
Gross Profit

$521M

Previous: $488M+6.7%
Cash & Equivalents

$770M

Previous: $153M+404.6%
Total Assets

$20.8B

Previous: $19.8B+5.2%
Stock-Based Comp

$7.19M

Previous: $10.7M-32.8%

Revenue & EPS history

AvalonBay · Revenue · Quarterly

$691M

Q2 2023+7.2%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

AvalonBay · $497M total across 1 segment · Q1 2021

  • Same Store Residential
    $497M

Forward guidance

AvalonBay provided its third quarter and full year 2023 financial outlook, expecting growth in EPS, FFO per share, and Core FFO per share. The company also anticipates growth in Same Store Residential revenue and NOI.

Tailwinds

  • Projected EPS for Q3 2023 is expected to be between $1.22 and $1.32.
  • Projected FFO per share for Q3 2023 is expected to be between $2.50 and $2.60.
  • Projected Core FFO per share for Q3 2023 is expected to be between $2.55 and $2.65.
  • Full year 2023 Same Store Residential revenue is expected to increase by 5.5% to 6.5%.
  • Full year 2023 Same Store Residential NOI is expected to increase by 5.25% to 6.75%.

Headwinds

  • Same Store Residential Opex change for full year 2023 is projected to increase between 6.0% and 7.0%.
  • Capital markets and transaction activity are expected to have a slightly negative impact on Q3 2023 EPS.
  • Unconsolidated investment income and management fees are projected to decrease in Q3 2023.
  • Gain on sale of real estate and depreciation expense are expected to decrease EPS by $1.20 in Q3 2023.
  • Overhead and other expenses are expected to negatively impact Q3 2023 EPS.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.1%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+1.4%

Avg return

30 days after

46%

33 / 72 earnings

Positive

+7.4%

Q2 2022

Best reaction

-6.7%

Q1 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-0.6%-0.4%
Q4 2025-4.6%-0.2%+0.0%
Q3 2025-0.9%-0.1%+3.2%
Q1 2025-0.5%-1.0%-1.5%
Q4 2024-1.1%-2.4%-2.6%
Q3 2024+4.7%+8.1%+5.3%
Q2 2024+3.3%-1.0%+9.5%
Q1 2024+0.1%-0.9%+2.1%
Q4 2023-0.2%-4.7%-0.2%
Q3 2023-0.9%-3.9%+2.4%
Q2 2023+0.9%-0.7%-0.5%
Q1 2023+3.5%+5.9%+0.1%
Q4 2022+0.4%+0.8%-7.9%
Q3 2022-2.3%-5.9%+0.8%
Q2 2022+7.4%+5.2%+6.0%
Q1 2022-2.0%-9.5%-13.7%
Q4 2021+2.3%-0.0%+1.2%
Q3 2021+2.0%+0.3%+2.1%
Q2 2021+0.7%+0.2%-1.2%
Q1 2021-1.9%-1.9%+6.0%
Q4 2020+3.3%+4.1%+6.7%
Q3 2020-2.7%+3.9%+20.0%
Q2 2020+0.6%-0.2%+6.2%
Q1 2020+0.7%-1.3%+8.4%
Q4 2019+0.2%+1.4%-4.4%
Q3 2019-1.9%-1.0%-1.8%
Q2 2019-3.7%-4.9%+0.8%
Q1 2019+1.9%+0.9%+4.6%
Q4 2018+2.3%+2.3%+2.8%
Q3 2018+2.1%-1.0%+8.0%
Q2 2018+2.7%+4.6%+7.0%
Q1 2018-0.2%+0.7%-0.1%
Q4 2017-1.7%-4.7%-7.8%
Q3 2017-0.2%+0.2%+0.2%
Q2 2017-2.2%-1.9%-2.1%
Q1 2017-0.6%+0.9%+1.1%
Q4 2016+1.3%+0.9%+4.5%
Q3 2016-0.6%-0.3%-4.5%
Q2 2016-1.6%+0.2%-5.8%
Q1 2016-1.2%
Q4 2015+1.6%
Q3 2015-2.2%
Q2 2015+0.4%
Q1 2015-0.0%
Q4 2014-2.5%
Q3 2014+0.2%
Q2 2014+1.9%
Q1 2014-0.5%
Q4 2013+3.9%
Q3 2013-4.3%
Q2 2013+0.6%
Q1 2013+0.9%
Q4 2012-5.9%
Q3 2012-0.1%
Q2 2012-0.8%
Q1 2012+0.8%
Q4 2011-1.5%
Q3 2011+0.7%
Q2 2011-3.6%
Q1 2011-0.9%
Q4 2010-0.4%
Q3 2010+2.9%
Q2 2010+1.4%
Q1 2009-6.7%
Q1 2010-6.7%
Q4 2007-0.2%
Q4 2009-0.2%
Q3 2008+5.3%
Q3 2009+5.3%
Q4 2008+5.3%
Q2 2008-5.1%
Q2 2009-5.1%

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