AvalonBay forecasts second-quarter FFO below estimates on weak demand

AvalonBay Communities,.

27/04/2026 22:17

April 27 (Reuters) - U.S.-based real estate investment trust AvalonBay Communities AVB.N forecast second-quarter core funds from operations below market expectations on Monday, as softer consumer spending and high borrowing costs weighed on rental activity.

• High interest rates and uncertainty surrounding tariffs have delayed home-buying decisions, dampening leasing demand.

• The REIT's portfolio in Seattle, Northern California and the San Francisco Bay Area, including San Jose, showed signs of weakness, pressured by slower rental demand and an influx of new apartment supply.

• AvalonBay said it expects second-quarter core FFO to be between $2.72 and $2.82 per share; the midpoint is below analysts' average estimate of $2.84 per share, according to data compiled by LSEG.

• The company reported first-quarter core FFO of $2.83 per share, slightly higher than expectations of $2.81 per share.

 (Reporting by Apratim Sarkar and Parth Chandna in Bengaluru; Editing by Sahal Muhammed)

 ((Apratim.Sarkar@thomsonreuters.com;))