AvalonBay Communities, Inc. Provides Q3 2025 Results and Updates Full Year 2025 Outlook

ARLINGTON, Va.--(BUSINESS WIRE)--AvalonBay Communities, Inc. (NYSE: AVB) (the “Company”) reported Earnings per Share – diluted (“EPS”), Funds from Operations attributable to common stockholders - diluted (“FFO”) per share and Core FFO per share (as defined in this release) for the three and nine months ended September 30, 2025 and 2024 as detailed below. Q3 2025 Q3 2024 % Change EPS $ 2.68 $ 2.61 2.7 % FFO per share (1) $ 3.01 $ 2.88 4.5 % Core FFO per share (1) $ 2.75 $ 2.74 0.4 % YTD 2025 YTD 2024 % Change EPS $ 6.22 $ 5.62 10.7 % FFO per share (1) $ 8.60 $ 8.36 2.9 % Core FFO per share (1) $ 8.40 $ 8.21 2.3 % (1) For additional detail on reconciling items between net income attributable to common stockholders, FFO and Core FFO, see Definitions and Reconciliations, table 3. The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the three months ended September 30, 2025 to its results for the prior year period: Q3 2025 Results Compared to Q3 2024 Per Share EPS FFO Core FFO Q3 2024 per share reported results $ 2.61 $ 2.88 $ 2.74 Same Store Residential NOI (1) 0.04 0.04 0.04 Other Residential NOI 0.05 0.05 0.05 Overhead and other (0.01 ) (0.01 ) (0.01 ) Capital markets activity (0.07 ) (0.08 ) (0.07 ) Non-core items (2) 0.13 0.13 — Real estate gains, net, depreciation expense and other (0.07 ) — — Q3 2025 per share reported results $ 2.68 $ 3.01 $ 2.75 (1) Consists of increases of $0.11 in revenue and $0.07 in operating expenses. (2) For detail of non-core items, see Definitions and Reconciliations, table 3. The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the three months ended September 30, 2025 to its July 2025 outlook: Q3 2025 Results Compared to July 2025 Outlook Per Share EPS FFO Core FFO Projected per share (1) $ 2.46 $ 2.77 $ 2.80 Same Store Residential NOI (2) (0.03 ) (0.03 ) (0.03 ) Overhead (0.01 ) (0.01 ) (0.01 ) Capital markets activity (0.01 ) (0.01 ) (0.01 ) Non-core items (3) 0.29 0.29 — Real estate gains, net, depreciation expense and other (0.02 ) — — Q3 2025 per share reported results $ 2.68 $ 3.01 $ 2.75 (1) The mid-point of the Company's July 2025 outlook. (2) Consists of unfavorable revenue of $0.01 and operating expenses of $0.02. (3) For detail of non-core items, see Definitions and Reconciliations, table 3. The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the nine months ended September 30, 2025 to its results for the prior year period: YTD 2025 Results Compared to YTD 2024 Per Share EPS FFO Core FFO YTD 2024 per share reported results $ 5.62 $ 8.36 $ 8.21 Same Store Residential NOI (1) 0.20 0.20 0.20 Other Residential and Commercial NOI 0.21 0.21 0.21 Overhead and other (0.02 ) (0.02 ) (0.02 ) Capital markets activity (0.19 ) (0.20 ) (0.20 ) Non-core items (2) 0.05 0.05 — Real estate gains, net, depreciation expense and other 0.35 — — YTD 2025 per share reported results $ 6.22 $ 8.60 $ 8.40 (1) Consists of increases of $0.38 in revenue and $0.18 in operating expenses. (2) For detail of non-core items, see Definitions and Reconciliations, table 3. Same Store Operating Results for the Three Months Ended September 30, 2025 Compared to the Prior Year Period Same Store Residential revenue increased $15,100,000, or 2.3%, to $685,357,000. Same Store Residential operating expenses increased $9,911,000, or 4.6%, to $224,309,000 and Same Store Residential NOI increased $5,189,000, or 1.1%, to $461,048,000. Same Store Operating Results for the Nine Months Ended September 30, 2025 Compared to the Prior Year Period Same Store Residential revenue increased $54,483,000, or 2.7%, to $2,043,888,000. Same Store Residential operating expenses increased $25,445,000, or 4.1%, to $643,686,000 and Same Store Residential NOI increased $29,038,000, or 2.1%, to $1,400,202,000. Development Activity During the three months ended September 30, 2025, the Company completed the development of Avalon Annapolis, located in Annapolis, MD. Avalon Annapolis contains 508 apartment homes and was constructed for a Total Capital Cost of $195,000,000. During the three months ended September 30, 2025, the Company started the construction of two apartment communities: Avalon Southpoint, located in Durham, NC; and Avalon Mission Valley, located in San Diego, CA. These communities are expected to contain an aggregate of 1,015 apartment homes and 31,000 square feet of commercial space for an estimated Total Capital Cost of $434,000,000. Avalon Southpoint is being developed through the Company's Developer Funding Program. During the nine months ended September 30, 2025, the Company: completed the development of two wholly-owned communities containing an aggregate of 708 apartment homes for a Total Capital Cost of $274,000,000; and started the construction of six apartment communities and expanded the development of Avalon Pleasanton. These communities are expected to contain an aggregate of 2,510 apartment homes and 41,000 square feet of commercial space. Estimated Total Capital Cost for these communities is $1,044,000,000. At September 30, 2025, the Company had 21 wholly-owned Development communities under construction that are expected to contain 7,806 apartment homes and 100,000 square feet of commercial space. Estimated Total Capital Cost for these communities is $3,012,000,000. Disposition Activity During the three months ended September 30, 2025, the Company sold six wholly-owned communities: Avalon at Gallery Place, located in Washington, D.C.; Avalon First and M, located in Washington, D.C.; AVA NoMa, located in Washington, D.C.; AVA H Street, located in Washington, D.C.; Archstone Redmond Lakeview, located in Redmond, WA; and Avalon Brooklyn Bay, located in Brooklyn, NY. In aggregate, these communities contain 1,594 apartment homes and 20,000 square feet of commercial space. These communities were sold for $585,080,000, resulting in a net gain in accordance with accounting principles generally accepted in the United States ("GAAP") of $180,537,000 and an Economic Loss of $4,825,000. During the nine months ended September 30, 2025, the Company sold nine wholly-owned communities containing an aggregate of 2,102 apartment homes and 38,000 square feet of commercial space. These communities were sold for $811,680,000, resulting in a net gain in accordance with GAAP of $336,081,000 and an Economic Gain of $104,421,000. Acquisition Activity During the three months ended September 30, 2025, the Company acquired three wholly-owned communities: Avalon at Palisades, located in Charlotte, NC, containing 274 apartment homes for a purchase price of $72,300,000; Avalon Coconut Creek, located in Coconut Creek, FL, containing 270 apartment homes for a purchase price of $99,000,000; and eaves Redmond Campus II, located in Redmond, WA, containing 40 apartment homes for a purchase price of $15,650,000. Additionally, the Company acquired its joint venture partner's 50% interest in Avalon Alderwood Place for $71,250,000. With the buyout of the joint venture partner's interest, Avalon Alderwood Place is now a wholly-owned apartment community and consolidated for financial reporting purposes. Avalon Alderwood Place contains 328 apartment homes and is located in Lynnwood, WA. During the nine months ended September 30, 2025, excluding the Avalon Alderwood Place joint venture buyout, the Company acquired eleven communities containing 3,285 apartment homes for a total purchase price of $805,450,000. This amount includes the agreed-upon value of the DownREIT units issued for the Dallas-Fort Worth portfolio of six communities acquired in April 2025. Structured Investment Program ("SIP") Activity As previously disclosed, during the three months ended September 30, 2025, the Company entered into one new SIP commitment, agreeing to provide an investment of up to $28,000,000 in a multifamily development project in Southeast Florida. During the nine months ended September 30, 2025, the Company entered into two new SIP commitments, agreeing to provide an aggregate investment of up to $48,000,000 in multifamily development projects. See full release for additional information on the Company's SIP portfolio. Liquidity and Capital Markets At September 30, 2025, the Company had $123,313,000 in unrestricted cash and cash equivalents. During the three months ended September 30, 2025, the Company had the following debt activity: As previously disclosed, the Company issued $400,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds before offering costs of $394,888,000. The notes mature in August 2035 and were issued with a 5.00% coupon. The effective interest rate of the notes is 5.05%, considering the net proceeds and including the impact of offering costs and hedging activity; and The Company exercised the full accordion option under its term loan, which was entered into during the three months ended June 30, 2025, to increase the principal amount by $100,000,000 to $550,000,000. The term loan is indexed to SOFR plus a spread, currently SOFR + 0.78% per annum. The Company hedged the term loan interest rate variability with interest rate swaps, resulting in an effective fixed rate of 4.44% after deferred fees and issuance costs. During the nine months ended September 30, 2025, in addition to the activity discussed above, the Company had the following debt activity: The Company repaid $525,000,000 principal amount of its 3.45% coupon unsecured notes at par upon maturity; and The Company amended and restated its Credit Facility to (i) increase its borrowing capacity to $2,500,000,000 from $2,250,000,000, and (ii) extend the maturity date to April 2030 from September 2026. In addition, the Company increased the capacity of its unsecured commercial paper program to $1,000,000,000 from $500,000,000. As of September 30, 2025, the Company did not have any borrowings outstanding under its Credit Facility, and had outstanding borrowings of $234,981,000 under its unsecured commercial paper program. The Company’s annualized Net Debt-to-Core EBITDAre (as defined in this release) for the third quarter of 2025 was 4.5 times and Unencumbered NOI (as defined in this release) for the nine months ended September 30, 2025 was 95%. As previously disclosed, during the three months ended September 30, 2024, the Company entered into forward contracts to sell 3,680,000 shares of common stock at a discount to the closing price of $226.52 per share for approximate net proceeds of $808,606,000. During the three months ended September 30, 2025, the Company extended the settlement of these forward contracts to a date no later than December 31, 2026. In addition, during 2024 the Company entered into forward contracts under its continuous equity program to sell 367,113 shares of common stock at a gross weighted average price of $223.27 per share for approximate net proceeds of $80,687,000. These forwards are expected to settle no later than December 31, 2025. Stock Repurchases and New Stock Repurchase Program During the three months ended September 30, 2025, the Company repurchased 786,797 shares of common stock at an average price of $192.99 per share, including fees, for a total of $151,846,000 under its then-existing $500,000,000 stock repurchase program (the "2020 Stock Repurchase Program"). Following the completion of these purchases, the Company terminated the 2020 Stock Repurchase Program and adopted a new stock repurchase program under which the Company may acquire shares of its common stock in open market or negotiated transactions up to an aggregate purchase price of $500,000,000 (the "2025 Stock Repurchase Program"). Purchases of common stock under the 2025 Stock Repurchase Program may occur from time to time in the Company’s discretion. The 2025 Stock Repurchase Program does not have an expiration date and may be suspended or terminated at any time without prior notice. There have been no repurchases since the end of the third quarter. Fourth Quarter and Full Year 2025 Financial Outlook For its fourth quarter and full year 2025 financial outlook, the Company expects the following: Projected EPS, Projected FFO and Projected Core FFO Outlook (1) Q4 2025 Full Year 2025 Low High Low High Projected EPS $ 1.18 — $ 1.28 $ 7.35 — $ 7.55 Projected FFO per share $ 2.76 — $ 2.86 $ 11.31 — $ 11.51 Projected Core FFO per share $ 2.80 — $ 2.90 $ 11.15 — $ 11.35 (1) See Definitions and Reconciliations, table 9, for reconciliations of Projected FFO per share and Projected Core FFO per share to Projected EPS. Full Year 2025 Financial Outlook Full Year 2025 vs. Full Year 2024 Low High Same Store: Residential revenue change 2.3% — 2.7% Residential Opex change 3.6% — 4.0% Residential NOI change 1.8% — 2.2% The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the third quarter 2025 to the mid-point of its fourth quarter 2025 financial outlook: Q3 2025 Results Compared to Q4 2025 Outlook Per Share EPS FFO Core FFO Q3 2025 per share reported results $ 2.68 $ 3.01 $ 2.75 Same Store Residential Opex 0.07 0.07 0.07 NOI from new Development 0.02 0.02 0.02 Capital markets activity (0.01 ) (0.01 ) (0.01 ) Overhead and other 0.02 0.02 0.02 Non-core items (1) (0.30 ) (0.30 ) — Gain on sale of real estate, net and depreciation expense (1.25 ) — — Projected per share - Q4 2025 outlook (2) $ 1.23 $ 2.81 $ 2.85 (1) For detail of non-core items, see Definitions and Reconciliations, table 3 and table 9. (2) Represents the mid-point of the Company's outlook. The following table compares the mid-point of the Company’s October 2025 full year outlook for EPS, FFO per share and Core FFO per share to its July 2025 outlook: October 2025 Full Year Outlook Compared to July 2025 Full Year Outlook Per Share EPS FFO Core FFO Projected per share - July 2025 outlook (1) $ 7.95 $ 11.26 $ 11.39 Same Store Residential revenue (0.05 ) (0.05 ) (0.05 ) Same Store Residential Opex (0.04 ) (0.04 ) (0.04 ) Commercial NOI (0.02 ) (0.02 ) (0.02 ) NOI from new Development (0.01 ) (0.01 ) (0.01 ) Joint Venture and other (0.02 ) (0.02 ) (0.02 ) Non-core items (2) 0.29 0.29 — Gain on sale of real estate, net and depreciation expense (0.65 ) — — Projected per share - October 2025 outlook (1) $ 7.45 $ 11.41 $ 11.25 (1) Represents the mid-point of the Company's outlook. (2) For detail of non-core items, see Definitions and Reconciliations, table 3 and table 9. Other Matters The Company will hold a conference call on October 30, 2025 at 1:00 PM ET to review and answer questions about this release, its third quarter 2025 results, the Attachments (described below) and related matters. To participate on the call, dial 877-407-9716. To hear a replay of the call, which will be available from October 30, 2025 at 6:00 PM ET to November 30, 2025, dial 844-512-2921 and use replay passcode: 13750085. A webcast of the conference call will also be available at https://investors.avalonbay.com, and an online playback of the webcast will be available for at least seven days following the call. The Company produces Earnings Release Attachments (the "Attachments") that provide detailed information regarding operating, development, redevelopment, disposition and acquisition activity. These Attachments are considered a part of this earnings release and are available in full with this earnings release via the Company's website at https://investors.avalonbay.com. To receive future press releases via e-mail, please submit a request through https://investors.avalonbay.com/news-events/email-alerts. In addition to the Attachments, the Company is providing a teleconference presentation that will be available on the Company's website at https://investors.avalonbay.com subsequent to this release and before the market opens on October 30, 2025. About AvalonBay Communities, Inc. AvalonBay Communities, Inc., a member of the S&P 500, is an equity REIT that develops, redevelops, acquires and manages apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. As of September 30, 2025, the Company owned or held a direct or indirect ownership interest in 314 apartment communities containing 97,219 apartment homes in 11 states and the District of Columbia, of which 21 communities were under development. More information may be found on the Company’s website at https://www.avalonbay.com. For additional information, please contact Matthew Grover, Senior Director of Investor Relations, at 703-317-4524. Forward-Looking StatementsRead the full story here

AvalonBay Communities, Inc. Provides Q3 2025 Results and Updates Full Year 2025 Outlook

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