AvalonBay Communities Inc (NYSE:AVB) stock fell 0.09% (As on August 1, 11:18:13 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 23. Same Store total revenue increased 6.2%, to $636,890,000. Same Store Residential rental revenue increased 6.3%, to $629,883,000. Same Store Residential operating expenses increased 8.2%, to $195,251,000 and Same Store Residential NOI increased 5.4%, to $435,057,000. During the three months ended June 30, 2023, the Company completed the development of two communities. These communities contain an aggregate of 323 apartment homes and 27,000 square feet of commercial space and were developed for an aggregate Total Capital Cost of $184,000,000. During the three months ended June 30, 2023, the Company started the development of Avalon Hunt Valley West, located in Hunt Valley, MD. Avalon Hunt Valley West is expected to contain 322 apartment homes when completed and be developed for an estimated Total Capital Cost of $109,000,000. At June 30, 2023, the Company had 17 consolidated Development communities under construction that are expected to contain 5,761 apartment homes and 29,000 square feet of commercial space. Estimated Total Capital Cost at completion for these Development communities is $2,293,000,000.

Moreover, in aggregate, these communities contain 489 apartment homes and were sold for $237,000,000 and a weighted average Initial Market Cap Rate of 4.5%, resulting in a gain in accordance with GAAP of $187,341,000 and an Economic Gain of $123,278,000. In July 2023, the Company sold Avalon Columbia Pike, located in Arlington, VA. Avalon Columbia Pike contains 269 apartments homes and 27,000 square feet of commercial space and was sold for $105,000,000.

AVB in the second quarter of FY 23 has reported the adjusted funds from operations (FFO) per share of $2.66, beating the analysts’ estimates for the adjusted FFO per share of $2.60, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $690.86 million in the second quarter of FY 23, beating the analysts’ estimates for revenue by 2.25%.

Additionally, at June 30, 2023, the Company had $769,622,000 in unrestricted cash and cash equivalents and $177,376,000 in cash in escrow, which is composed of principal reserve funds for secured borrowing arrangements as well as proceeds from a disposition held in escrow for subsequent tax deferred exchange activity. In July 2023, the Company entered into an additional mezzanine loan commitment, agreeing to fund up to $20,900,000 of a multifamily development project in North Carolina.