Stock Monitor: Granite Point Mortgage Trust Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 04, 2017 / Active-Investors free earnings report on AvalonBay Communities, Inc. (NYSE: AVB) ("AvalonBay") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=AVB. The Company reported its third quarter fiscal 2017 operating results on October 30, 2017. The Arlington, Virginia-based real estate investment surpassed revenue expectations. Register today and get free access to our complimentary member's area where many more reports are available:

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Active-Investors.com is currently working on the research report for Granite Point Mortgage Trust Inc. (NYSE: GPMT), which also belongs to the Financial sector as the Company AvalonBay Communities. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, AvalonBay Communities most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

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Earnings Highlights and Summary

AvalonBay's total revenue increased 6.6% to $550.50 million, driven by growths in revenue from development communities and stabilized operating communities. The Company's revenue numbers topped analysts' expectations of $538.5 million.

For Q3 2017, AvalonBay's net income attributable to common stockholders was $238.25 million, or $1.72 per share, compared to a net income of $356.39 million, or $2.59 per share, for the prior year's same period.

AvalonBay's funds from operations (FFO) attributable to common stockholders increased 10.9% to $2.34 per diluted share for Q3 2017 compared to $2.11 per diluted share for Q3 2016. The Company's Core FFO per share grew 5.8% to $2.19 for the reported quarter from $2.07 for the prior year's comparable period. AvalonBay's FFO numbers fell short of Wall Street's estimates of $2.26 per share.

Operating Results

During Q3 2017, AvalonBay's average rental rates for Established Communities increased 2.0%, and economic occupancy increased 0.2%, resulting in an increase in rental revenue of 2.2%. The Company's total revenue for Established Communities increased 2.2% to $398.35 million on a y-o-y basis in the reported quarter. The segment's operating expenses for Established Communities grew 2.4% to $119.31 million, and net operating income (NOI) for Established Communities increased 2.1% to $279.04 million.

Development Activity

During Q3 2017, AvalonBay completed the development of Avalon Chino Hills, located in Chino Hills, CA, which contains 331 apartment homes and was constructed for a total capital cost of $96.60 million.

At September 30, 2017, AvalonBay had 23 communities under construction that are expected to contain 6,888 apartment homes and be completed for an estimated total capital cost of $3,195,800,000, including the Company's share of communities being developed through joint ventures. The projected total capital cost of development rights was at $3.2 billion at September 30, 2017.

Acquisition Activity

In September 2017, AvalonBay acquired two communities. The Lodge Denver West, located in Lakewood, CO, containing 252 apartment homes was acquired for a purchase price of $76.75 million. The acquisition marked the Company's entry into the Denver metropolitan area.

AvalonBay acquired Avalon Dunn Loring, located in Vienna, VA, containing 440 apartment homes and 27,000 square feet of retail space, for a purchase price of $151.00 million.

Disposition Activity

During Q3 2017, the Company sold Avalon Danbury, a wholly-owned operating community located in Danbury, CT. Avalon Danbury, which contains 234 apartment homes, was sold for $52.00 million, resulting in a gain in accordance with GAAP of $27.83 million and an Economic Gain of $14.62 million. Avalon Danbury generated an unleveraged IRR of 10.4% over a weighted average investment period of 11.7 years.

Liquidity and Capital Markets

At September 30, 2017, AvalonBay had borrowings of $242.00 million outstanding under its $1,500,000,000 unsecured credit facility. In addition, the Company had $217.11 million in unrestricted cash and cash in escrow, of which $51,479,000 related to proceeds from dispositions held in escrow for planned tax deferred exchange activity. The Company's annualized net debt-to-core EBITDA was 5.0 times for Q3 2017.

Outlook

For Q4 2017, AvalonBay is forecasting FFO in the range of $2.21 to $2.27, while for FY17, the Company is expecting FFO in the band of $8.58 to $8.64 per share.

Stock Performance Snapshot

December 01, 2017 - At Friday's closing bell, AvalonBay Communities' stock ended the trading session flat at $181.33.

Volume traded for the day: 628.64 thousand shares.

Stock performance in the last twelve-month period ? up 10.91%; and year-to-date ? up 2.36%

After last Friday's close, AvalonBay Communities' market cap was at $25.14 billion.

Price to Earnings (P/E) ratio was at 28.43.

The stock has a dividend yield of 3.13%.

The stock is part of the Financial sector, categorized under the REIT - Residential industry. This sector was up 0.1% at the end of the session.

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