We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The quarterly performance reflects better-than-expected operating results. AVB has also reaffirmed its full-year 2025 outlook.
Total revenues in the quarter came in at $745.9 million, missing the Zacks Consensus Estimate marginally. However, the figure increased 4.6% on a year-over-year basis.
AVB’s Quarter in Detail
In the reported quarter, same-store residential revenues increased 3% year over year to $693.1 million. Same-store residential operating expenses rose 4% to $214.76 million. As a result, the same-store residential NOI climbed 2.6% to $478.3 million.
Same-store average revenue per occupied home rose to $3,032 in the first quarter, up 2.9% from $2,946 in the year-ago period. Same-store economic occupancy of 96% rose 10 basis points (bps) year over year. Our estimate for the metric was 95.9%.
Interest expenses also increased 9.3% year over year to $59.9 million. Our estimate for the metric was $58.9 million.
As of March 31, 2025, AvalonBay had 19 wholly owned Development communities under construction (expected to contain 6,595 apartment homes and 69,000 square feet of commercial space). The estimated total capital cost of these development communities at completion is $2.5 billion.
AVB’s Portfolio Activity
In February 2025, AVB entered into agreements to acquire eight apartment communities in its Texas expansion region. During the first quarter, the company acquired the two communities in the Austin metropolitan area, comprising 857 homes, for $187.0 million. It was funded mainly with disposition proceeds. The remaining six communities located in the Dallas-Fort Worth metropolitan area were acquired on April 30, 2025 for a stated purchase price of $431.5 million.
During the reported quarter, AVB sold Avalon Wilton on River Road, a wholly owned community with 102 apartment homes, in Wilton, CT, for $65.1 million, resulting in a gain in accordance with GAAP of $56.48 million. It marked the company's exit from the Connecticut market.
AVB’s Balance Sheet Position
AVB had $53.26 million in unrestricted cash and cash equivalents as of March 31, 2025. As of the same date, the company did not have any borrowings outstanding under its unsecured revolving credit facility. It had outstanding borrowings of $224.9 million under its unsecured commercial paper note program.
Additionally, its annualized net debt-to-core EBITDAre for the January-March period was 4.3 times, and the unencumbered NOI for the year ended March 31, 2025 was 95%.
AVB’s 2025 Outlook
For full-year 2025, AVB has reaffirmed its full-year core FFO and same-store outlooks as disclosed in its prior earnings release in February. At that time, AVB projected core FFO per share between $11.14 and $11.64. The Zacks Consensus Estimate presently stands at $11.41, within the projected range.
Management expected same-store residential revenue growth of 2-4% and an operating expense increase of 3-5.2%. Same-store residential NOI is projected to expand 1.3-3.5%.
For the second quarter of 2025, AvalonBay expects core FFO per share in the range of $2.72-$2.82. This is lower than the Zacks Consensus Estimate, which is currently pegged at $2.85.
Equity Residential (EQR - Free Report) reported first-quarter 2025 normalized FFO per share of 95 cents, which outpaced the Zacks Consensus Estimate of 93 cents. The figure also improved 2.2% from the year-ago quarter. Rental income of $760.8 million missed the consensus mark of $766.8 million. Rental income was up 4.1% year over year. Equity Residential’s results reflected a rise in same-store revenues and physical occupancy on a year-over-year basis. Equity Residential reaffirmed its guidance for 2025. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Mid-America Apartment Communities (MAA - Free Report) , commonly known as MAA, reported first-quarter 2025 core FFO per share of $2.20, which surpassed the Zacks Consensus Estimate of $2.16. However, the reported figure fell 0.9% year over year from $2.22. MAA’s results reflected healthy demand and an occupancy rise. Mid-America witnessed low levels of resident turnover. Rental and other property revenues of $549.3 million for the first quarter missed the Zacks Consensus Estimate of $551.3 million. However, the reported figure was 1.04% higher than the year-ago quarter’s tally.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AvalonBay's Q1 FFO Beats Estimates, Occupancy Rises Y/Y
AvalonBay Communities (AVB - Free Report) reported first-quarter 2025 core funds from operations (FFO) per share of $2.83, beating the Zacks Consensus Estimate of $2.80. The figure also climbed 4.8% from the prior-year quarter’s tally.
The quarterly performance reflects better-than-expected operating results. AVB has also reaffirmed its full-year 2025 outlook.
Total revenues in the quarter came in at $745.9 million, missing the Zacks Consensus Estimate marginally. However, the figure increased 4.6% on a year-over-year basis.
AVB’s Quarter in Detail
In the reported quarter, same-store residential revenues increased 3% year over year to $693.1 million. Same-store residential operating expenses rose 4% to $214.76 million. As a result, the same-store residential NOI climbed 2.6% to $478.3 million.
Same-store average revenue per occupied home rose to $3,032 in the first quarter, up 2.9% from $2,946 in the year-ago period. Same-store economic occupancy of 96% rose 10 basis points (bps) year over year. Our estimate for the metric was 95.9%.
Interest expenses also increased 9.3% year over year to $59.9 million. Our estimate for the metric was $58.9 million.
As of March 31, 2025, AvalonBay had 19 wholly owned Development communities under construction (expected to contain 6,595 apartment homes and 69,000 square feet of commercial space). The estimated total capital cost of these development communities at completion is $2.5 billion.
AVB’s Portfolio Activity
In February 2025, AVB entered into agreements to acquire eight apartment communities in its Texas expansion region. During the first quarter, the company acquired the two communities in the Austin metropolitan area, comprising 857 homes, for $187.0 million. It was funded mainly with disposition proceeds. The remaining six communities located in the Dallas-Fort Worth metropolitan area were acquired on April 30, 2025 for a stated purchase price of $431.5 million.
During the reported quarter, AVB sold Avalon Wilton on River Road, a wholly owned community with 102 apartment homes, in Wilton, CT, for $65.1 million, resulting in a gain in accordance with GAAP of $56.48 million. It marked the company's exit from the Connecticut market.
AVB’s Balance Sheet Position
AVB had $53.26 million in unrestricted cash and cash equivalents as of March 31, 2025. As of the same date, the company did not have any borrowings outstanding under its unsecured revolving credit facility. It had outstanding borrowings of $224.9 million under its unsecured commercial paper note program.
Additionally, its annualized net debt-to-core EBITDAre for the January-March period was 4.3 times, and the unencumbered NOI for the year ended March 31, 2025 was 95%.
AVB’s 2025 Outlook
For full-year 2025, AVB has reaffirmed its full-year core FFO and same-store outlooks as disclosed in its prior earnings release in February. At that time, AVB projected core FFO per share between $11.14 and $11.64. The Zacks Consensus Estimate presently stands at $11.41, within the projected range.
Management expected same-store residential revenue growth of 2-4% and an operating expense increase of 3-5.2%. Same-store residential NOI is projected to expand 1.3-3.5%.
For the second quarter of 2025, AvalonBay expects core FFO per share in the range of $2.72-$2.82. This is lower than the Zacks Consensus Estimate, which is currently pegged at $2.85.
AvalonBay currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AvalonBay Communities, Inc. Price, Consensus and EPS Surprise
AvalonBay Communities, Inc. price-consensus-eps-surprise-chart | AvalonBay Communities, Inc. Quote
Performance of Other Residential REITs
Equity Residential (EQR - Free Report) reported first-quarter 2025 normalized FFO per share of 95 cents, which outpaced the Zacks Consensus Estimate of 93 cents. The figure also improved 2.2% from the year-ago quarter. Rental income of $760.8 million missed the consensus mark of $766.8 million. Rental income was up 4.1% year over year. Equity Residential’s results reflected a rise in same-store revenues and physical occupancy on a year-over-year basis. Equity Residential reaffirmed its guidance for 2025. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Mid-America Apartment Communities (MAA - Free Report) , commonly known as MAA, reported first-quarter 2025 core FFO per share of $2.20, which surpassed the Zacks Consensus Estimate of $2.16. However, the reported figure fell 0.9% year over year from $2.22. MAA’s results reflected healthy demand and an occupancy rise. Mid-America witnessed low levels of resident turnover. Rental and other property revenues of $549.3 million for the first quarter missed the Zacks Consensus Estimate of $551.3 million. However, the reported figure was 1.04% higher than the year-ago quarter’s tally.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.