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Sep 30
AvalonBay Q3 2025 Earnings Report
AvalonBay posted solid Q3 2025 results with higher EPS and continued operational stability across its residential and commercial portfolio.
Key Takeaways
AvalonBay delivered growth in EPS and Core FFO per share, supported by increases in residential and commercial NOI. Operational margins remained healthy, and the company maintained strong financial flexibility with 95% of NOI unencumbered.
EPS increased to $2.68, up from $2.61 in Q3 2024
Core FFO per share grew slightly to $2.75
Same Store Residential revenue rose 2.3% to $685.4 million
Net Debt-to-Core EBITDAre was 4.5x with 95% Unencumbered NOI
AvalonBay
AvalonBay
AvalonBay Revenue by Segment
AvalonBay Revenue by Geographic Location
Revenue by Segment
Same Store Residential Revenue
CapyFin.comOther Stabilized Revenue
CapyFin.comDevelopment/Redevelopment Revenue
CapyFin.comCommercial Revenue
CapyFin.comRevenue by Geographic Location
New England Revenue
CapyFin.comMetro NY/NJ Revenue
CapyFin.comMid-Atlantic Revenue
CapyFin.comSoutheast FL Revenue
CapyFin.comDenver, CO Revenue
CapyFin.comPacific NW Revenue
CapyFin.comNo. California Revenue
CapyFin.comSo. California Revenue
CapyFin.comOther Expansion Regions Revenue
CapyFin.com Forward Guidance
AvalonBay expects continued strength in operating performance, supported by stable fundamentals and modest growth in core FFO, though macroeconomic headwinds may impact capital markets activity and rent growth.
Positive Outlook
- Q4 Core FFO projected at $2.80–$2.90 per share
- Full year Core FFO guidance narrowed to $11.15–$11.35 per share
- Residential NOI expected to increase 1.8–2.2% YoY in 2025
- Low leverage profile with Net Debt-to-Core EBITDAre of 4.5x
- 95% of NOI from unencumbered assets supports flexibility
Challenges Ahead
- Residential Opex projected to rise 3.6–4.0% YoY
- Flat Core FFO growth QoQ signals limited upside
- Commercial NOI slightly declined YoY
- Development risk with over $3B in pipeline
- Capital markets activity negatively impacted EPS and FFO