Price Target Cut Amid Solid Q2 Gains for AvalonBay

AvalonBay Communities, Inc. (NYSE:AVB) is one of the 12 Best REIT Stocks to Buy Right Now.

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.

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