NEW YORK, Oct 23 (Reuters) - AvalonBay Communities Inc said on Wednesday that funds from operations, a key profit measure of real estate investment trusts, rose in the third quarter, partly due to higher rents and the acquisition of a large portion of a former rival owned by Lehman Brothers Holdings Co.
For the third quarter, AvalonBay reported funds from operations rose to $153.4 million, compared with $140.2 million in the year-earlier quarter. On a per share basis, funds from operations fell to $1.18, compared with $1.44 a year earlier; the company had about 25 percent fewer shares in the year-ago quarter.
Analysts on average had expected $1.17 per share, according to Thomson Reuters I/B/E/S.
Funds from operations, or FFO, is a real estate investment trust performance measure that usually excludes gains or losses from property sales and removes the effect of depreciation on earnings.
For the fourth quarter, the company said it sees FFO in the range of $1.54 to $1.60 per share; analysts had forecast $1.64 per share.