Latest news with #AVB
Yahoo
3 hours ago
- Business
- Yahoo
Can AvalonBay's Portfolio Strength Offset Development Setbacks?
AvalonBay Communities AVB is well-poised to gain from healthy renter demand for its residential properties in the high barrier-to-entry regions of the United States. The company's efforts to leverage technology to drive margin expansion seem encouraging. Strategic buyouts and development projects, backed by a healthy balance sheet position, augur well for long-term growth. However, elevated rental unit supply in select markets and high-interest expenses raise concerns. Moreover, the company is witnessing delayed development month, AvalonBay reported a second-quarter 2025 core FFO per share of $2.82, beating the Zacks Consensus Estimate of $2.80. The figure also climbed 1.8% from the prior-year quarter's tally. The quarterly performance reflected favorable same-store residential revenue and operating expense performance. AvalonBay has revised its full-year 2025 outlook, reflecting higher same-store net operating income (NOI), offset by the delayed occupancies' impact on development NOI. What Is Aiding AvalonBay Communities? AvalonBay owns high-quality assets in top U.S. markets, focusing on metro areas with strong job growth, high homeownership costs and vibrant lifestyles. This positions it to earn superior long-term risk-adjusted returns. Its well-diversified portfolio includes both urban and suburban communities. In 2025, management expects same-store residential revenues to grow between 2.3% and 3.3% year over enhance its overall portfolio quality, AvalonBay has carried out several strategic acquisitions over the years. AvalonBay expects its current 73% suburban submarket allocation to achieve the 80% target, while the current 12% expansion region allocation to reach a target of 25%. The company is also disposing of non-core assets for capital recycling. Moreover, AVB's growth over the intermediate term is likely to be supported by its increased development deliveries. In 2025, management is planning development starts of around $1.7 billion. In the next few years, the developments underway upon completion and stabilization are expected to fuel FFO and net asset value growth. AvalonBay has a healthy balance sheet with ample liquidity, positioning it well to capitalize on long-term growth opportunities. As of June 30, 2025, this residential REIT did not have any borrowings outstanding under its $2.25 billion unsecured credit facility. The company has a well-laddered debt maturity schedule with a weighted average year-to-maturity of 6.8 years. In the second quarter of 2025, its annualized net debt-to-core EBITDAre was 4.4 times, and unencumbered NOI was 95%, providing scope for tapping additional secured debt capital if required. Moreover, balance sheet flexibility is preserved for future opportunities, with around 103% match-funded on current development underway in the second quarter of 2025. The investment-grade credit ratings of 'A3' from Moody's and 'A-' from S&P render it access to the debt market at favorable dividend payouts are arguably the biggest enticement for REIT investors, and AvalonBay has consistently paid dividends each year since it went public in 1994. In February 2025, concurrent with its fourth-quarter earnings release, AVB increased its first-quarter 2025 dividend to $1.75 per share from $1.70 paid in the prior quarter. This represented a hike of 2.9% from the prior payout. Moreover, backed by healthy operating fundamentals and a solid financial position, we expect the dividend rate to be sustainable in the coming years. What Is Hurting AVB? The struggle to lure renters is likely to persist, as supply volume remains elevated in a few markets where the company operates. Moreover, the company is witnessing delays in its development deliveries, resulting in lower occupancy and higher concessions in markets like Denver and Maryland, in particular, pushing its NOI has a substantial debt burden, and its total debt was approximately $8.71 billion as of June 30, 2025. Interest expenses increased 13.5% year over year to $64.8 million in the second quarter of 2025. US Apartment Market and Residential REITs in Q2 The U.S. apartment market remained impressively resilient in the second quarter of 2025, absorbing more than 227,000 units between April and June, a robust second-quarter figure. According to RealPage data, annual absorption surpassed even the peak leasing surge of 2021 and early 2022, defying a backdrop of slowing job growth, weak business sentiment and broader economic signaled good for residential REITs like AvalonBay, Equity Residential EQR and Essex Property Trust, Inc. ESS. Elevated absorption suggests that the renter appetite for professionally managed apartments is solid despite broader macro Residential reported second-quarter 2025 normalized FFO per share of 99 cents, which met the Zacks Consensus Estimate. The figure improved 2.1% from the year-ago quarter. Results reflected a rise in same-store revenues and physical occupancy on a year-over-year basis. The company increased its guidance for 2025 normalized FFO per share. Essex Property Trust Inc. reported second-quarter 2025 core FFO per share of $4.03, beating the Zacks Consensus Estimate of $3.99. The figure also improved 2.3% from the year-ago quarter. Results reflected favorable growth in same-property revenues and NOI. However, higher same-property operating expenses and interest expenses partly acted as a dampener. ESS raised its full-year 2025 guidance at the midpoint for core FFO per Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AvalonBay Communities, Inc. (AVB) : Free Stock Analysis Report Equity Residential (EQR) : Free Stock Analysis Report Essex Property Trust, Inc. (ESS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
2 days ago
- Business
- Yahoo
Price Target Cut Amid Solid Q2 Gains for AvalonBay
AvalonBay Communities, Inc. (NYSE:AVB) is one of the . Price target lowered and stock rating maintained at Hold, following the release of the company's Q2 2025 earnings report. An aerial view of a bustling metropolitan area with high-rise buildings and busy streets. Headquartered in Virginia, the REIT, AvalonBay Communities, Inc. (NYSE:AVB) is engaged in the business of developing, redeveloping, acquiring, and managing apartment communities with a focus on high-quality properties in major metropolitan areas across the US. The company is involved in the entire lifecycle of apartment communities, from initial development to ongoing management. The company discussed its second-quarter 2025 earnings results in a conference on July 31, 2025. As per the report, AvalonBay Communities, Inc. (NYSE:AVB)'s Core FFO per share of $2.82 exceeded the analyst expectations with a 1.8% year-over-year increase. The primary contributor was the increase in Same Store Residential revenue of 3.0% in Q2 2025, with NOI up 2.7%. Funded by capital from dispositions, the company is also on track to acquire $900 million of assets in 2025. However, the company continues to struggle in the Sun Belt region with a high level of standing inventory and anticipates underperformance in the Mid-Atlantic and Southern California regions due to declining demand and pricing momentum. Amid these reports, analysts including Truist Financial, Scotiabank, and RBC Capital maintain their Hold rating on the stock. Particularly, RBC Capital reduced the price target from $216 to $211. With 32 hedge funds backing the stock, AvalonBay Communities, Inc. (NYSE:AVB) enjoys modest confidence from institutional investors. While we acknowledge the potential of AVB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and 11 Best Long Term Low Risk Stocks to Invest in Disclosure. None.
Yahoo
7 days ago
- Business
- Yahoo
AvalonBay Communities' (AVB) Q2 Results Beat Estimates amid Construction Spree
AvalonBay Communities, Inc. (NYSE:AVB) is one of the best depressed stocks to buy in 2025. On July 30, the company delivered solid second-quarter results. Earnings per share were up 5.6% year-over-year to $1.88, better than the analyst estimate of $1.20 a share. STUDIO GRAND OUEST/ Same-store residential revenue was up 3% year-over-year to $689.1 million in the quarter and up 3% to $1.37 billion for the six months ended June 30, 2025. In addition to solid financial results, AvalonBay Communities completed the development of Avalon Princeton on Harrison, which contains 200 apartment homes. Additionally, Avalon Bay Communities has begun construction on two apartment communities: Avalon Kendall, located in Kendall, Florida, and Avalon Brier Creek, located in Durham, North Carolina. The apartment complex will comprise a total of 624 apartment homes. AvalonBay Communities, Inc. (NYSE:AVB) is a real estate investment trust (REIT) that develops, redevelops, acquires, and manages apartment communities. Consequently, it owns and operates an extensive portfolio of apartment communities and also develops new properties. While we acknowledge the potential of AVB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Top 10 Medical AI Companies to Buy According to Analysts and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-08-2025
- Business
- Yahoo
AvalonBay Communities' (AVB) Q2 Results Beat Estimates amid Construction Spree
AvalonBay Communities, Inc. (NYSE:AVB) is one of the best depressed stocks to buy in 2025. On July 30, the company delivered solid second-quarter results. Earnings per share were up 5.6% year-over-year to $1.88, better than the analyst estimate of $1.20 a share. STUDIO GRAND OUEST/ Same-store residential revenue was up 3% year-over-year to $689.1 million in the quarter and up 3% to $1.37 billion for the six months ended June 30, 2025. In addition to solid financial results, AvalonBay Communities completed the development of Avalon Princeton on Harrison, which contains 200 apartment homes. Additionally, Avalon Bay Communities has begun construction on two apartment communities: Avalon Kendall, located in Kendall, Florida, and Avalon Brier Creek, located in Durham, North Carolina. The apartment complex will comprise a total of 624 apartment homes. AvalonBay Communities, Inc. (NYSE:AVB) is a real estate investment trust (REIT) that develops, redevelops, acquires, and manages apartment communities. Consequently, it owns and operates an extensive portfolio of apartment communities and also develops new properties. While we acknowledge the potential of AVB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Top 10 Medical AI Companies to Buy According to Analysts and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-07-2025
- Business
- Yahoo
1 Reason to Buy AvalonBay Communities (AVB)
Key Points AvalonBay pays a high-yielding and steadily rising dividend. It has multiple growth drivers. The REIT should be able to continue increasing its payout. 10 stocks we like better than AvalonBay Communities › AvalonBay Communities (NYSE: AVB) is one of the country's largest apartment landlords, with almost 95,000 units across a dozen states. It has a diversified portfolio spanning major coastal markets and growing metro areas in the Sunbelt region. The residential REIT has an excellent record of growing shareholder value, delivering an average annual total return of 11.7% since its IPO. A big driver of those returns is its dividend. A key reason to buy AvalonBay is its high 3.5% current yield, along with its steadily rising payout. It's had a 4.8% compound annual growth rate since 2000. AvalonBay Communities currently pays a quarterly dividend of $1.75 per share, or $7 annually. It raised its payment by 2.9% earlier this year and nearly 300% since its IPO in 1993. The landlord easily supports this payment. It expects $11.14 to $11.64 in core funds from operations (FFO) per share this year. Its conservative payout ratio lets it retain cash for new investments. AvalonBay also has an elite balance sheet, providing additional flexibility for expanding its apartment portfolio. The REIT used its flexibility to buy eight apartment communities in Texas earlier this year for a combined $618.5 million. AvalonBay also has $3 billion of development projects under way that it expects to complete over the next couple of years. It still has $2.8 billion of liquidity to fund additional accretive growth investments as opportunities arise. In addition, AvalonBay's existing apartment portfolio should continue to benefit from strong apartment demand across its markets. This catalyst should keep occupancy levels high and drive up rental rates. Rising rents and portfolio growth should drive above-average net operating income growth, supporting continued dividend increases. AvalonBay's high-yielding and steadily rising dividend makes it a great stock to buy for those seeking to make passive income from real estate. Should you invest $1,000 in AvalonBay Communities right now? Before you buy stock in AvalonBay Communities, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AvalonBay Communities wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025 Matt DiLallo has positions in AvalonBay Communities. The Motley Fool recommends AvalonBay Communities. The Motley Fool has a disclosure policy. 1 Reason to Buy AvalonBay Communities (AVB) was originally published by The Motley Fool 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
