S&P 500 (NYSE:SPY) component AvalonBay Communities Inc. (NYSE:AVB) reported its results for the third quarter. AvalonBay Communities develops, acquires, and operates multifamily communities in barrier-to-entry markets in the United States.

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AvalonBay Communities Earnings Cheat Sheet for the Third Quarter

Results: The company’s funds from operations (FFO) rose 19.4% from the year earlier quarter to $1.17. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings. It fell short of the consensus estimate of $1.18 per share.

Quoting Management: Commenting on the Company’s results, Bryce Blair, Chairman and CEO, said, “NOI growth topped 9% and drove FFO per share growth of more than 19%. 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.”

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.30 a share to $1.26 over the last ninety days. The average estimate for the fiscal year is $4.66 per share, down from $4.72 ninety days ago.

Competitors to Watch: UDR, Inc. (NYSE:UDR), Equity Residential (NYSE:EQR), Apartment Investment and Management Co. (NYSE:AIV), Essex Property Trust, Inc. (NYSE:ESS), Camden Property Trust (NYSE:CPT), Mid-America Apartment (NYSE:MAA), Post Properties, Inc. (NYSE:PPS), Colonial Properties Trust (NYSE:CLP), BRE Properties, Inc. (NYSE:BRE), and Home Properties, Inc. (NYSE:HME).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

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