April 25 (Reuters) - AvalonBay Communities ( AVB )

forecast full-year funds from operations (FFO) marginally below

Wall Street estimates on Thursday, as weakness in rental markets

in Northern California offset strong performance in its suburban

coastal markets.

The company expects full-year FFO, an important metric

watched for real estate investment trusts (REITs), to be in the

range of $10.63 to $11.03 per share. Analysts on average were

expecting $10.86 per share, according to LSEG data.

AvalonBay's portfolio, which includes properties in cities

such as Seattle and San Francisco, has seen some rental weakness

due to flailing demand and strong supply. This offset steady

rental growth in markets such as suburban New York, Southeast

Florida and Washington D.C.

For the second quarter, the company expects projected FFO to

be in the range of $2.59 to $2.69 per share. Analysts on average

were anticipating $2.70 per share.

However, first quarter FFO per share of $2.73 beat estimates

of $2.65.

Same-store rental revenue grew 4.3% in the quarter ended

March from a year earlier.

(Reporting by Rupali Chaudhary and Ananta Agarwal in Bengaluru;

Editing by Sriraj Kalluvila)