Virginia-based AvalonBay Communities Inc., the second-largest real estate investment trust, reported a 27 percent increase in funds from operations to $107.6 million, or $1.17 per share, up from $84.5 million, or 98 centers per share, in 2010.
Net income was $44.82 million, or 49 cents per share, up 69 percent from 29 cents per share in 2010.
Apartment fundamentals remain favorable and with solid core portfolio growth, new development activity and a strong balance sheet, we are well positioned for earnings growth into 2012., said Bryce Blair, AvalonBay chairman and CEO, in a statement.
Total revenue increased 11.2 percent to $253 million and average rental rates increased by 5.9 percent.
In the third quarter, AvalonBay began construction on four projects in Seattle, California, Connecticut and New Jersey, totaling $210 million. It completed two projects in Connecticut and Washington State, totaling 182 apartments and $45.1 million in costs. It also acquired six development parcels for a total of around $65.27 million, where it plans 1,740 apartments, costing $374.65 million.
AvalonBay also began renovating three properties - two in California, one in Virginia - totaling 933 apartments and $28.4 million. It completed development of three properties in New York, New Jersey and California, for $39 million.
In dispositions, AvalonBay sold three parcels for $34.47 million.
The company expects earnings per share in the range of 54 cents to 58 cents in the fourth quarter, and a total of $1.84 to $1.88 per share for 2011. Shares of Avalonbay were trading at around $133.69 on Monday.
Earlier on Monday, the Colorado-based REIT UDR reported $73 million in funds from operations.
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