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$AVB has appointed Stephen Hills to its BoD, effective Sept 12, 2017. After a 28-year stint with The Washington Post, he now serves as a professor and founding director of the Business Law Scholars Program at the Georgetown University Law Center.
$AVB reported a marginal drop in its 1Q17 profit, hurt by a casualty and impairment loss. Net income during the quarter fell to $235.8MM, or $1.72 per share, compared to $237.9MM, or $1.73 per share during 1Q16. Total revenues increased 2.7% to $388.6MM, helped by growth in stabilized operating communities and development communities.
$AVB said a fire occurred on Feb. 4, 2017 at its Avalon Maplewood apartment community located in Maplewood, New Jersey. The community, which is currently under construction, was unoccupied at the time of the incident. The cause of the fire is under investigation. $AVB believes the losses will be substantially covered by its insurance programs.
For 4Q17, $AVB expects EPS to be $1.75-1.81, FFO per share to be $2.09-2.15 and core FFO per share to be $2.06-2.12. For FY17, EPS is expected to be $6.42-6.82, FFO per share is expected to be $8.59-8.99 and core FFO per share is estimated to be $8.44-8.84.
$AVB reported a 56% increase in 4Q16 profit, helped by increase in net operating income. Net income was $242.2MM or $1.76 per share compared to $155.4MM or $1.13 per share in the prior year quarter. FFO per share increased 6.1% to $2.09 and core FFO per share increased 6.5% to $2.12. Revenue rose 7.8% to $518.2MM in the recently ended quarter.
$AVB stated that GDP and job growth is decelerating. GDP growth has been below 1.5% for the last three quarters. Lower corporate profits and business confidence is resulting in less investment in labor and capital. The company is confident about the consumer confidence, which will accelerate household formation.
For 4Q16, $AVB, which is managing apartment communities in leading metropolitan areas in New England and the New York/New Jersey Metro area, forecast earnings per share in a range of $1.77-$1.83. FFO is expected to be $2.06-$2.12 per share. For the full year, the company forecast earnings of $7.53-$7.59 per share and FFO of $8.23-$8.29 per share.
Real estate investment trust $AVB reported 3Q16 Funds From Operations (FFO) increased 4.5% to $2.11 from $2.02 for the prior year period. EPS rose 69.3% to $2.59 for the period. The company attributed the strong quarterly performance to an increase in net operating income from newly developed and existing operating communities.