AvalonBay Q2 EPS falls 41%, raises same-store NOI outlook
AVB•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 - The company 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 the prior year and outlook.
- Capital markets and transaction activity - Capital markets and transaction activity had a negative impact on per-share results versus the prior year and outlook.
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
