ARLINGTON, VA-AvalonBay Communities Inc. blamed the costs associated with its pending purchase of Archstone Enterprises LP and Hurricane Sandy for a 65% drop in fourth quarter net income.

The multifamily REIT posed net income attributable to common stockholders of $122.4 million in the fourth quarter of 2012, as compared to $323 million during the same period a year earlier. For the full year, Avalon posted approximately $423.9 million in net income in 2012 as compared to $441.6 million in 2011.

Funds from operations attributable to common stockholders per share for the quarter increased 6.7% to $1.27 from $1.19 for the comparable period of 2011. FFO per share for the year ended increased 16.4% in 2012 to $5.32 from $4.57 for 2011.

In November 2012 Avalon and Equity Residential Trust agreed to acquire all of the assets and assume all of the liabilities of Archstone Enterprise in a deal valued at $16 billion. Upon closing of the deal, Avalon will fund approximately 40% of the acquisition.

Tim Naughton, CEO and president of AvalonBay Communities, said in a statement, “Our fourth quarter results capped a year of solid performance marked by our second consecutive year of double-digit FFO growth. We expect apartment fundamentals to remain healthy in 2013 and in anticipation of continued growth in 2013 from our development platform, our current communities and the addition of the Archstone portfolio, our Board approved a 10.3% increase to our quarterly dividend.”

The company’s Board of Directors declared a dividend for the first quarter of 2013 of $1.07 per share of its common stock (par value of $0.01 per share). The declared dividend is a 10.3% increase over its prior quarterly dividend of $0.97 per share. The dividend is payable on April 15, 2013 to common stockholders of record as of March 29, 2013. See company announcement on Business Wire.