AvalonBay forecast second-quarter FFO below estimates, shares fall

AvalonBay Communities,.

30/04/2025 23:37

April 30 -  U.S. based real estate investment trust (REIT) AvalonBay Communities AVB.N on Wednesday forecast second-quarter core funds from operation (FFO) below Wall Street estimates, as its rental business faced pressure from softer-than-expected consumer demand and elevated supply in Sunbelt regions.

Shares of the company were down more than 4% after the bell.

The REIT expects second quarter core FFO per share to be between $2.72 and $2.82, with the midpoint below analysts' average estimate of $2.81, according to LSEG data.

AvalonBay's portfolio, which includes properties in Seattle, Northern California, San Francisco and San Jose, has been impacted by elevated supply and slower-than-expected demand.

The company reported first-quarter core FFO of $2.83, in-line with analysts estimates.

Same-store residential revenue grew 3% to $693.1 million in the quarter ended March 31, while same-store residential operating expenses grew by 4% to $214.7 million.

 (Reporting by Rupali Chaudhary and Abhinav Parmar in Bengaluru; Editing by Tasim Zahid)

 ((Rupali.Chaudhary@thomsonreuters.com;))