AvalonBay beats quarterly FFO estimates on strong rental demand

AvalonBay Communities,.

30/07/2025 22:03

July 30 (Reuters) - AvalonBay Communities' AVB.N core funds from operations for the second quarter surpassed Wall Street estimates on Wednesday, as tight rental supply in suburban coastal markets across the U.S. continued to support strong rental income growth.

The U.S.-based company's properties in places such as New England, Florida, New York and Washington, D.C. — which were less affected by the oversupply of rentals seen in other parts of the country — continue to show strong demand, with rent still growing steadily.

The company reported second-quarter core FFO, a key profitability metric for REITs, of $2.82 per share, above the analysts' average estimate of $2.79 apiece, according to data compiled by LSEG.

It expects annual core FFO to be in a range of $11.19 to $11.59 per share, compared with analysts' expectations of $11.26 per share for 2025.

Same-store residential revenue grew 3% in the second quarter, while same-store residential net operating income increased 2.7%.

The company reported 5.6% rise in per-share profit at $1.88 for the quarter ended June 30.

Shares of the company rose marginally in extended trade.

 (Reporting by Apratim Sarkar and Anshuman Tripathy; Editing by Alan Barona)

 ((Apratim.Sarkar@thomsonreuters.com))