Avalonbay Communities, Inc. · NYSE:AVB
Avalonbay Communities — Q2 2025 Earnings Presentation
37 slides from Avalonbay Communities's earnings presentation, Jul 31, 2025
Slide 1: Investor Relations Update Second Quarter 2025
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] INVESTOR RELATIONS UPDATE SECOND QUARTER 2025 JUNE 2, 2025 Avalon Somerville Station Somerville, NJ
Slide 2: Important Information
IMPORTANT SUPPLY [FAVORABLE INFORMATION 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-
Slide 3: 2Q25 Same Store Operating Update
[FAVORABLE 2Q25 SAMESUPPLY STORE BACKDROP OPERATINGFOR ESTABLISHED REGIONS PERSISTS, UPDATE WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] The Company provided the following Same Store Residential operating information (1): → Revenue f
Slide 4: AVB 2025 Outlook Implies Sector Leading Core FFO Growth
[FAVORABLE SUPPLY BACKDROP AVB 2025 OUTLOOK FOR ESTABLISHED IMPLIES SECTOR REGIONS LEADING CORE FFOPERSISTS, GROWTH; WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] ONLY APARTMENT REIT PEER WITH CORE FFO GROWTH > SAME STORE NOI GROWTH [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 2
Slide 5: About AvalonBay
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Will Add Photo Later ABOUT AVALONBAY Avalon Redmond Campus Redmond, WA 5 5
Slide 6: Largest Publicly-Traded Multifamily REIT; S&P 500 Company
[FAVORABLE SUPPLY BACKDROP LARGEST PUBLICLY-TRADED FOR ESTABLISHED MULTIFAMILY REIT;REGIONS PERSISTS, WHILE THECOMPANY S&P 500 SUNBELT CONTINUES TO DIGEST WITH STRONG STANDING INVENTORY] SHAREHOLDER RETURNS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] $39B A3 | A- 309 94,865 TOTAL MOODY’S |
Slide 7: 30 Years of Outstanding Growth
[FAVORABLE 30-YEARS OFSUPPLY BACKDROP OUTSTANDING FOR ESTABLISHED GROWTH REGIONS AS INDUSTRY PERSISTS, LEADER WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] JOINS S&P 500 EXPANDS TO EXPANDS TO CHARLOTTE, AVALON PROPERTIES AVALON & BAY
Slide 8: Diversified Portfolio Across Markets, Submarkets, and Types
DIVERSIFIEDSUPPLY [FAVORABLE PORTFOLIO ACROSS BACKDROP FORLEADING MARKETS ESTABLISHED AND REGIONS PERSISTS, WHILE THE SUNBELT SUBMARKETS, ANDCONTINUES TO DIGESTTYPES ACROSS PRODUCT STANDING ANDINVENTORY] PRICE POINTS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Regional Allocation Submarket
Slide 9: Positioned for Continued Growth in 2025
POSITIONED FOR CONTINUED GROWTH IN 2025 Strategic Focus Areas To Deliver Superior Growth 1 INNOVATE AND TRANSFORM OPERATIONS Driving Incremental NOI OPTIMIZE P0RTFOLIO ALLOCATION AND 2 PERFORMANCE Positioning for continued growth 3 GROW BY LEVERAGING DEVELOPMENT CAPABILITIES Generating accretive ext
Slide 10: Innovate and Transform Operations
[FAVORABLE SUPPLY 1 INNOVATE AND BACKDROP TRANSFORM FOR ESTABLISHED REGIONS PERSISTS, OPERATIONS DELIVERED WHILE $39M OF THE SUNBELT ANNUAL TO CONTINUES INCREMENTAL NOI THROUGH DIGEST STANDING YEAR-END 2024 AND INVENTORY] PROJECTING ANOTHER [SUBURBAN COASTAL PORTFOLIO $9M POSITIONED IN 2025; ADVANCI
Slide 11: Optimize Portfolio Allocation and Performance
[FAVORABLE SUPPLY 2 OPTIMIZE PORTFOLIO BACKDROP ALLOCATION AND FOR ESTABLISHED REGIONS PERSISTS, PERFORMANCE ADVANCING WHILE OUR PORTFOLIO THE SUNBELT CONTINUESOPTIMIZATION OBJECTIVES; TO DIGEST STANDING INVENTORY] $620M IN TEXAS [SUBURBAN COASTAL PORTFOLIOACQUISITIONS ENHANCES SCALE AT COMPELLING B
Slide 12: Grow by Leveraging Development Capabilities
[FAVORABLE SUPPLYDEVELOPMENT 3 GROW BY LEVERAGING BACKDROPCAPABILITIES FOR ESTABLISHED REGIONS PERSISTS, $3B OFTHE WHILE DEVELOPMENT UNDERWAY SUNBELT CONTINUES FULLY TO DIGEST MATCH-FUNDED STANDING AND EXPECTED TO DRIVE INVENTORY] INCREMENTAL EARNINGS [SUBURBAN COASTAL PORTFOLIO POSITIONED TOAND VAL
Slide 13: Leverage Growth-Oriented Balance Sheet
[FAVORABLE SUPPLY BACKDROP 4 LEVERAGE GROWTH-ORIENTED BALANCEFOR ESTABLISHED REGIONS PERSISTS, SHEET FURTHER WHILE THESTRENGTHENING SUNBELT CONTINUES OUR TOPREEMININET BALANCE DIGEST STANDING SHEET; INVENTORY] PROVIDING [SUBURBAN COASTAL FLEXIBILITY PORTFOLIO POSITIONEDTO FUND ACCRETIVE GROWTH TO OU
Slide 14: 1Q 2025 Earnings Review
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 1Q 2025 EARNINGS REVIEW Avalon North Andover Andover, MA 14
Slide 15: 1Q25 Key Takeaways
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, 1Q25 KEY TAKEAWAYS WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIOcoastal, • Supply-constrained POSITIONED TO OUTPERFORM] Suburban portfolio well-positioned heading into peak leasing season → Operating
Slide 16: Review of 1Q25 Results and YTD Activity
[FAVORABLE SUPPLY REVIEW OF 1Q25 BACKDROP RESULTS ANDFOR ESTABLISHED YTD ACTIVITY REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 1Q25 RESULTS AND ACTIVITY CORE FFO PER SHARE GROWTH 4.8% YEAR-OVER-YEAR SAME STORE RESID
Slide 17: Full Year Outlook Reaffirmed
FULL YEAR OUTLOOK [FAVORABLE REAFFIRMED, SUPPLY BACKDROP WITH EXPECTED FOR ESTABLISHED SEASONAL REGIONS PERSISTS, INCREASE IN OPEX CONTINUES WHILE THE SUNBELT DURING 2QTO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] COMPONENTS OF 1Q 2025 TO 2Q 2025 PROJECTED CORE
Slide 18: High Occupancy and Minimal New Supply Support Pricing Power
HIGH OCCUPANCY [FAVORABLE SUPPLYAND MINIMAL BACKDROP FORNEW SUPPLY SUPPORT ESTABLISHED PRICING POWER REGIONS PERSISTS, WHILE THE SUNBELT IN ESTABLISHED CONTINUES TO DIGEST STANDING INVENTORY] REGIONS… [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] MARKET OCCUPANCY PROJECTED NEW MARKET RATE AP
Slide 19: Outlook for Established Regions to Persist
[FAVORABLE FAVORABLESUPPLY SUPPLYBACKDROP OUTLOOK FOR FORESTABLISHED ESTABLISHED REGIONS PERSISTS, REGIONS TO PERSIST; WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] FURTHER IMPROVEMENT EXPECTED IN SECOND HALF OF 2025 [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] PROJECTED 2025 AN
Slide 20: Rental Affordability Is Healthy
…RENTAL AFFORDABILITY [FAVORABLE IS HEALTHY, SUPPLY BACKDROP AND RENTING FOR ESTABLISHED REMAINS REGIONS SIGNIFICANTLY PERSISTS, WHILE MORE THE SUNBELT CONTINUES AFFORDABLE TO DIGEST STANDING INVENTORY] THAN HOMEOWNERSHIP [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] (1) (2) INDEXED RENT-TO-
Slide 21: Same Store Portfolio Supply Metrics
SAME STORE [FAVORABLE PORTFOLIO SUPPLY METRICS BACKDROP HEALTHY IN 1Q; FOR ESTABLISHED REGIONS PERSISTS, PORTFOLIO WELL-POSITIONED WHILE THE SUNBELT HEADING CONTINUES TO INTO PEAKINVENTORY] DIGEST STANDING LEASING SEASON [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 2025 SAME STORE RESIDENTI
Slide 22: 2025 Development Starts
[FAVORABLE PROJECTED SUPPLY BACKDROP FORSTARTS 2025 DEVELOPMENT ESTABLISHED REGIONS BACK-HALF PERSISTS,TARIFF IMPACTS WEIGHTED; WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] BUFFERED BY SUBCONTRACTOR TAILWINDS AS INDUSTRY STARTS DECLINE [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFOR
Slide 23: Appendix
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] APPENDIX Avalon Bothell Commons Bothell, WA 23
Slide 24: 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 contains "forward-looking statements" within the meaning of Section 27A of the Sec
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] 2024 Forward Equity Activity, as discussed in this
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] Dividend Growth, presented as annualized dividend
Slide 27: 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) Includes joint venture interest, taxes, deprec
Slide 28: 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] 28
Slide 29: 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 for Q1 2025 consist primarily of net u
Slide 30: 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] Market Cap Rate is defined by the Company as Proje
Slide 31: 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] Net Debt-to-Core EBITDAre is calculated by the Com
Slide 32: 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 33: 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 34: 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 35: 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] Total Capital Cost includes all capitalized costs
Slide 36: 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] Unencumbered NOI as calculated by the Company repr
Slide 37: Supply Backdrop for Established Regions Persists
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 37
AvalonBay Communities — Q2 2025 Earnings Presentation on 6ix