Earnings Preview For AvalonBay Communities (AVB)

AvalonBay Communities AVB is expected to publish its Q1 earnings results on Wednesday, April 27, after the markets close. Analysts are predicting earnings per share to stand at $1.05, which represents a 9.37% rise on the previous year's level of $0.96. AvalonBay Communities is a real estate investment trust. The company is engaged in the development, redevelopment, acquisition, ownership and operation of multifamily communities in high barrier to entry markets of the United States. Its markets are located in New England, the New York/New Jersey Metro area, the Washington DC Metro area, the Midwest, the Pacific Northwest, and the Northern and Southern California regions of the United States. Its real estate investments consist of four segments: Established Communities, Other Stabilized Communities and Development/Redevelopment Communities. As of January 31, 2011, it owned or held a direct or indirect ownership interest in 173 operating apartment communities containing 51,693 apartment homes in 10 states and the District of Columbia, of which 142 communities containing 43,052 apartment homes were consolidated for financial reporting purposes and four communities containing 1,194 apartment homes were held by joint ventures. AvalonBay's shares have gained over 23% over the last 52 weeks. Investors will be hoping for strong results on Wednesday if its shares are to continue their upward momentum. Analysts are giving investors some reasons to be hopeful, however. AvalonBay's revenues are predicted to be $233.94 million this quarter, before rising to $240.55 million in the next quarter. For the whole year, revenues are expected to be 9.4% higher than in 2010. AvalonBay's earnings per share, on the other hand, is projected to grow 16% this year. Good earnings prospects were not enough to persuade the majority of rating agencies to put a Buy rating on AvalonBay, however. The real estate market has been hit hard during the current crisis. Analysts in 13 rating agencies, which have a Hold rating on AvalonBay's shares, might be worried that the recovery is still on very shaky ground.