AvalonBay Q2 EPS falls 41%, raises same-store NOI outlook

Overview

• U.S. apartment REIT's Q2 EPS fell 41% yr/yr, core FFO per share rose 1.4%

• Company raised full-year same-store NOI outlook on rent growth and lower operating expenses

• AvalonBay suspended EPS and FFO outlooks due to previously announced merger with Equity Residential

Outlook

• AvalonBay raises 2026 Same Store revenue growth outlook to 1.1%-2.1% from 0.4%-2.4%

• Company increases 2026 Same Store NOI growth outlook to 0%-1.4% from (0.7)%–1.3%

• AvalonBay suspends EPS, FFO, and Core FFO guidance due to proposed merger with Equity Residential

Result Drivers

• RENT GROWTH AND LOWER OPERATING EXPENSES - Co said healthier demand, easing new supply, and disciplined execution led to strong rent growth and lower operating expenses, per COO Sean J. Breslin

• DEVELOPMENT NOI CONTRIBUTION - Development NOI contributed positively to per-share results compared to prior year and outlook

• CAPITAL MARKETS AND TRANSACTION ACTIVITY - Capital markets and transaction activity had a negative impact on per-share results versus prior year and outlook

Company press release: ID:nBw9Q1Rt9a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 15 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the residential reits peer group is "buy"

• Wall Street's median 12-month price target for AvalonBay Communities Inc is $198.00, about 3.9% above its July 21 closing price of $190.65

• The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 33 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)