AvalonBay Communities Inc. (AVB), a leading real estate investment trust (REIT), reported fiscal 2009 fourth quarter funds from operations (FFO) of $52.7 million or 64 cents per share, compared to $23.0 million or 30 cents in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. For full year 2009, FFO was $313.2 million or $3.89 per share compared to $315.9 million or $4.07 in the previous year.
Total revenues during the quarter, including discontinued operations, decreased 0.3% year-over-year to $220.7 million. Same-store quarterly rental revenues decreased 6.1% year-over-year due to a 0.2% decline in economic occupancy and 6.3% dip in average rental rates. Same-store revenue decreased across all geographic segments. Same-store operating expenses increased 6.7% during the quarter compared to the year-ago period. Same-store net operating income (NOI) during the quarter decreased 11.8% year-over-year to $92.4 million.
For full year 2009, total revenues including discontinued operations, increased 0.4% year-over-year to $886.7 million. Same-store fiscal 2009 rental revenues decreased 3.7% year-over-year due to a 0.6% decline in economic occupancy and 3.1% decline in average rental rates. Same-store operating expenses increased 4.0% during full year 2009 compared to the previous year. Same-store NOI during the fiscal decreased 7.1% year-over-year to $387.1 million.
AvalonBay completed development activities in four communities during the quarter, totaling 1,382 apartment homes at an aggregate cost of $465.2 million. These include Avalon White Plains in White Plains, New York; Avalon Union City in Union City, California; Avalon at Mission Bay North III in San Francisco, California; and Avalon Blue Hills in Randolph, Massachusetts. For full year 2009, the company completed the development activities of nine communities totaling 2,526 apartment homes at an aggregate cost of $810.7 million.
During the quarter, AvalonBay started development work on two communities totaling 399 apartment homes at a total cost of $64.9 million. The new construction activities are the first of its kind for full year 2009, and signify the stabilization of the markets. At year-end 2009, the company had seven properties in its development pipeline at a total estimated cost of $813.3 million.
During the quarter, AvalonBay commenced the redevelopment of an apartment community in California totaling 235 apartment homes for a total cost of $7.5 million. For full year 2009, the company completed the redevelopment of four communities totaling 926 apartment homes for a total cost of $28.7 million. AvalonBay sold three communities totaling 640 apartment homes for $110.2 million during the quarter. Subsequent to the end of the quarter, the company sold a 295-apartment home community for $45.5 million. For full year 2009, the company sold five communities totaling 1,037 apartment homes for $179.7 million.
At year-end 2009, AvalonBay had $316.4 million of unrestricted cash and cash in escrow, and an interest coverage ratio of 2.7x. During the quarter, AvalonBay purchased a principal amount of $300 million worth of unsecured notes at 108% of par. The company also purchased an additional $10.1 million principal amount of unsecured notes at 107% of par. In addition, the company repaid $112.2 million of unsecured debt and repaid $33.6 million of variable rate secured notes. Amid the continued challenges in the macroeconomic environment, the company expects FFO for full year 2010 in the range of $3.60 to $3.85 per share, with first quarter FFO in the range of 89 cents to 93 cents.
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