Avalonbay Communities, Inc. · NYSE:AVB
Avalonbay Communities — Q3 2025 Earnings Presentation
27 slides from Avalonbay Communities's earnings presentation, Oct 30, 2025
Slide 1: Investor Teleconference Presentation Third Quarter 2025
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] INVESTOR TELECONFERENCE PRESENTATION THIRD QUARTER 2025 OCTOBER 30, 2025 Avalon at the Hingham Shipyard Hingham, MA
Slide 2: See Appendix for forward-looking statements and non-GAAP information
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] See Appendix for information about forward- looking statements and definitions and reconciliations of non-GAAP financial measur
Slide 3: Participants
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, PARTICIPANTS WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] BEN SCHALL Chief Executive Officer & President KEVIN O’SHEA Chief Financial Officer MATT BIRENBAUM Chief Investmen
Slide 4: Key Takeaways
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, KEY TAKEAWAYS WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] • 3Q results below our expectations; Current Full Year outlook reflects lower revenue growth (primarily in 4Q) an
Slide 5: Review of 3Q25 Backdrop, Results and YTD Activity
[FAVORABLE SUPPLY REVIEW OF 3Q25 BACKDROP RESULTS ANDFOR ESTABLISHED YTD ACTIVITY REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] RESULTS AND ACTIVITY 3Q YTD CORE FFO PER SHARE GROWTH 0.4% 2.3% YEAR-OVER-YEAR SAME STOR
Slide 6: 3Q Core FFO Per Share
3Q CORE FFO [FAVORABLE PER SHARE SUPPLY BELOW BACKDROP FOROUR OUTLOOK, ESTABLISHED DRIVENPERSISTS, REGIONS BY UNFAVORABLE SAME WHILE STORE EXPENSE THE SUNBELT RESULTS CONTINUES TO AND MODESTLY DIGEST STANDINGLOWER SAME STORE REVENUE INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] CO
Slide 7: Job Growth Has Fallen Short of Tempered Mid-Year Expectations
JOB GROWTH [FAVORABLE HAS FALLEN SUPPLY SHORT BACKDROP FOROF TEMPEREDREGIONS ESTABLISHED MID-YEAR EXPECTATIONS; PERSISTS, REVENUE WHILE THE MODERATED BELOWTO SUNBELT CONTINUES OUR FORECAST DIGEST LATE STANDING IN 3Q AND INTO OCTOBER INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] NA
Slide 8: Current Opex Outlook Reflects First Half Savings
CURRENT OPEX [FAVORABLE OUTLOOK SUPPLY REFLECTS BACKDROP FIRST HALFREGIONS FOR ESTABLISHED SAVINGS PARTIALLY OFFSET PERSISTS, WHILE BY THE SUNBELT HIGHER CONTINUES COSTS IN TO DIGEST STANDING SELECT CATEGORIES DURINGINVENTORY] THE SECOND HALF [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] SAM
Slide 9: Updated 2025 Full Year Outlook
[FAVORABLE SUPPLY UPDATED 2025 FULLBACKDROP FOR ESTABLISHED REGIONS PERSISTS, YEAR OUTLOOK WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 2025 FULL YEAR OUTLOOK SUMMARY CURRENT PRIOR(1) INITIAL(2) PROJECTED CORE FFO PER SHARE GROWTH MI
Slide 10: Components of 2025 Core FFO Per Share Outlook Change
[FAVORABLE PROJECTED SUPPLY BACKDROP CORE FFO FOR ESTABLISHED PER SHARE REGIONS LOWER OUTLOOK REFLECTS PERSISTS, REVENUE WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] GROWTH (PRIMARILY [SUBURBAN COASTAL IN 4Q) PORTFOLIO POSITIONED AND REVISED 2H EXPENSE GROWTH FORECAST TO OUTPERFORM] COM
Slide 11: Same Store Portfolio Metrics
SAME STORE [FAVORABLE PORTFOLIO SUPPLY METRICS BACKDROP STARTED TO REGIONS FOR ESTABLISHED MODERATE IN AUGUST, PERSISTS, WITH WHILETRENDS MORE THE SUNBELT PRONOUNCED CONTINUES IN SEPTEMBER TO DIGEST AND OCTOBER STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 2025 SAME STORE
Slide 12: 2025 Same Store Residential Revenue Growth Projections by Region
[FAVORABLE SUPPLY MID-ATLANTIC AND BACKDROP SOUTHERNFOR ESTABLISHED CALIFORNIA REGIONS DRIVING PERSISTS, MAJORITY OF REDUCTION IN WHILE THE GROWTH REVENUE SUNBELT CONTINUES TO DIGEST EXPECTATIONS; STANDING EXPANSION INVENTORY] REGIONS ALSO LOWER [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM]
Slide 13: Established Regions Well Positioned
ESTABLISHED [FAVORABLE REGIONS SUPPLY WELL POSITIONED BACKDROP AS SUPPLY FOR ESTABLISHED DECLINES REGIONS PERSISTS,TO HISTORICAL WHILE LOWS;THE SUNBELT RELATIVE CONTINUES TO DIGEST AFFORDABILITY REMAINSSTANDING INVENTORY] SIGNIFICANTLY IN FAVOR OF RENTING [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OU
Slide 14: Projected Stabilized Yields on Development Underway
[FAVORABLE PROJECTED SUPPLY INITIAL BACKDROP FOR STABILIZED ESTABLISHED YIELDS REGIONS PERSISTS, ON DEVELOPMENT UNDERWAY TRENDING WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] ABOVE UNDERWRITING GIVEN MEANINGFUL COST SAVINGS AND HIGHER RENTS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTP
Slide 15: Favorable 2026 Supply Backdrop for Development Starts
POTENTIAL [FAVORABLE2026 DEVELOPMENT SUPPLY BACKDROP FORSTARTS SUPPORTED ESTABLISHED BYPERSISTS, REGIONS LESS COMPETITION AND WHILE THE SUNBELT DECLINING CONTINUES COSTS; START TO DIGEST VOLUME TO BESTANDING INVENTORY] RESPONSIVE TO MARKET ENVIRONMENT [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPER
Slide 16: [FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 16
Slide 17: Forward-Looking Statements
FORWARD-LOOKING [FAVORABLE STATEMENTS SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] This presentation dated October 30, 2025 is provided in connection with AvalonBay’s third quarter 20
Slide 18: Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Asset Preservation Capex represents capital expend
Slide 19: Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] FFO and Core FFO are generally considered by manag
Slide 20: Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 20
Slide 21: Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] (1) Amounts consist primarily of net unrealized ga
Slide 22: Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] NOI is defined by the Company as total property re
Slide 23: Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Match-Funded (Development Underway) is calculated
Slide 24: Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Projected FFO and Projected Core FFO, as provided
Slide 25: Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Projected NOI, as used within this presentation fo
Slide 26: Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Same Store is composed of consolidated communities
Slide 27: [FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 27
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