(Adds outlook, earnings details, stock price)
By Ilaina Jonas
NEW YORK, July 25 (Reuters) - Apartment landlord AvalonBay Communities Inc said an earnings performance measure rose 28.3 percent in the second quarter, helped by lower utility costs from mild weather and higher rental rates, especially in Northern California.
The company on Wednesday reported funds from operations, or FFO, of $128.2 million, or $1.34 per share, up from $99.9 million, or $1.13 per share, in the year-ago period. Revenue rose 6.9 percent to $261.9 million.
Analysts, on average, had expected second-quarter FFO of $1.34 per share on revenue of $257.2 million, according to Thomson Reuters I/B/E/S. The company’s forecast ranged from $1.30 to $1.34.
Funds from operations, or FFO, is an industry measure that usually excludes the effect of depreciation from earnings as well as losses or gains from property sales.
AvalonBay, which owns or has an interest in 201 apartment communities, said it sees third-quarter FFO of $1.38 to $1.42 per share. Analysts on average forecast third-quarter FFO of $1.40 per share.
The Arlington, Virginia-based company narrowed its forecast for full-year FFO to a range of $5.39 to $5.53 per share from a range of $5.25 to $5.55, while analysts’ average estimate is $5.46.
For properties the company has operated more than a year, AvalonBay posted a 7.1 percent rise in second-quarter net operating income, an indicator of how well they are managed. The average rental rate rose 6.2 percent.
Shares of AvalonBay closed down 0.3 percent, or 49 cents, at $145.32 on the New York Stock Exchange, and held steady in after-hours trade. (Reporting By Ilaina Jonas; Editing by Richard Chang)