ARLINGTON, Va. (AP) — ARLINGTON, Va. (AP) — AvalonBay Communities Inc. (AVB) on Wednesday reported a key measure of profitability in its second quarter. The results topped Wall Street expectations.

The Arlington, Virginia-based real estate investment trust said it had funds from operations of $406 million, or $2.86 per share, in the period.

The average estimate of seven analysts surveyed by Zacks Investment Research was for funds from operations of $2.80 per share.

Funds from operations is a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization.

The company said it had net income of $155.7 million, or $1.11 per share.

The apartment building owner posted revenue of $777.8 million in the period, which also topped Street forecasts. Six analysts surveyed by Zacks expected $775.3 million.

The company's shares have climbed roughly 5% since the beginning of the year, while the S&P's 500 index has risen 9.5%. In the final minutes of trading on Wednesday, shares hit $190.07, a decrease of 7% in the last 12 months.

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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on AVB at https://www.zacks.com/ap/AVB