Arlington-based AvalonBay Communities Inc., one of the nation's largest apartment owners, saw profits rise after selling some properties, but winter storm-related costs dragged funds from operations lower.

The company also says the apartment rental market is on the rebound, and sees a better year than expected.

First quarter net income was $72.5 million, or 88 cents per share, compared to net income of $47.4 million, or 59 cents per share a year earlier. Per share funds from operations fell 24.4 percent, adversely impacted by severe weather and storm damage that raised repaid expenses.

"Our first quarter results reflect a recovery in apartment market conditions that is occurring sooner than anticipated," said chief executive Bryce Blair. " Declining home ownership, favorable demographics and limited new rental supply are all contributing to improved fundamentals."

AvalonBay (NYSE: AVB) now expects funds from operations for the full year will be at the high end of its forecast range.

AvalonBay owns or holds a stake in 172 apartment communities in ten states and the District.