AvalonBay Communities' stock surged 5.11% during intraday trading on Tuesday, marking a significant upward movement for the real estate investment trust.

The sharp increase appears to be driven primarily by the company's release of first-quarter earnings results, which significantly exceeded analyst expectations. The company reported adjusted earnings per share of $2.33 for the quarter ended March 31, well above the mean analyst estimate of $1.27 per share and higher than the $1.66 reported in the same quarter last year.

Revenue also showed strength, rising 3.5% year-over-year to $770.28 million, slightly surpassing the expected $769.44 million. The earnings beat comes amid mixed analyst sentiment, with Scotiabank recently maintaining a Hold rating on the stock with a $190 price target.