Avalon Holdings Reports Q1 Revenue Decline, Net Loss Widens

Avalon Holdings Corporation reported a 14.8% decline in net operating revenues for Q1 2025, with a net loss of $1.5 million, or $0.38 per share, compared to Q1 2024. The waste management services segment saw a 22.4% year-over-year decline, while the golf operations remained steady. Cash and cash equivalents fell by 54.7% to $1.27 million, and current liabilities increased by 20.5% to $18.63 million.

AvalonBay Communities (AVB) reported strong first-quarter 2025 core funds from operations (FFO) per share of $2.83, surpassing the Zacks Consensus Estimate of $2.80 and marking a 4.8% year-over-year increase [1]. The company's quarterly performance reflected better-than-expected operating results, with total revenues of $745.9 million, a 4.6% year-over-year increase, but slightly missing the Zacks Consensus Estimate [1].

Same-store residential revenues increased 3% year-over-year to $693.1 million, while same-store operating expenses rose 4% to $214.76 million. Consequently, the same-store residential NOI climbed 2.6% to $478.3 million [1]. Same-store average revenue per occupied home rose to $3,032, up 2.9% from the year-ago period, and same-store economic occupancy increased to 96%, up 10 basis points year-over-year [1].

Interest expenses also increased 9.3% year-over-year to $59.9 million [1]. As of March 31, 2025, AvalonBay had 19 wholly owned development communities under construction, with an estimated total capital cost of $2.5 billion at completion [1].

In Q1 2025, AvalonBay entered into agreements to acquire eight apartment communities in its Texas expansion region, acquiring two communities in the Austin metropolitan area for $187.0 million and six communities in the Dallas-Fort Worth metropolitan area for $431.5 million [1]. The company also sold Avalon Wilton on River Road, a wholly owned community with 102 apartment homes, in Wilton, CT, for $65.1 million, resulting in a gain of $56.48 million [1].

AvalonBay's balance sheet position showed $53.26 million in unrestricted cash and cash equivalents as of March 31, 2025, with no borrowings outstanding under its unsecured revolving credit facility and $224.9 million outstanding under its unsecured commercial paper note program [1]. The company's annualized net debt-to-core EBITDA ratio for the January-March period was 4.3 times, and the unencumbered NOI for the year ended March 31, 2025, was 95% [1].

For full-year 2025, AvalonBay has reaffirmed its full-year core FFO and same-store outlooks, projecting core FFO per share between $11.14 and $11.64, with the Zacks Consensus Estimate presently standing at $11.41 [1]. The company expects same-store residential revenue growth of 2-4% and an operating expense increase of 3-5.2%, with same-store residential NOI projected to expand 1.3-3.5% [1].

AvalonBay currently carries a Zacks Rank #3 (Hold) [1].

References:
[1] https://finance.yahoo.com/news/avalonbays-q1-ffo-beats-estimates-163100823.html