At a glance
- The quarter is partial: Vivmark's results cover its post-closing performance plus AvalonBay's two-plus weeks as a standalone, since AvalonBay was the accounting acquirer.
- For allocators in private apartment funds, Vivmark's first disclosure sets a quarterly public benchmark: 95.8% occupancy, 12.7% turnover and core FFO of $1.03 a share.
- Vivmark is the largest publicly traded apartment owner in the country, according to Commercial Observer, with more than 184,000 apartments in the San Francisco, Washington, D.C., Boston and New York areas.
Vivmark Residential reported $1.19 billion in third-quarter revenue and core FFO of $1.03 a share in its first results since the AvalonBay Communities–Equity Residential merger closed in mid-August.
Merger-related costs ran about $725 million, $25 million below the initial estimate. The quarter is partial: Vivmark's results cover its post-closing performance plus AvalonBay's two-plus weeks as a standalone, since AvalonBay was the accounting acquirer. Executives on Thursday's earnings call pointed to the lower costs as evidence integration was going better than expected. Net operating income was $800.76 million. The company reported a net loss of more than $747 million, and reported FFO was 8 cents a share.
For allocators in private apartment funds, Vivmark's first disclosure sets a quarterly public benchmark: 95.8% occupancy, 12.7% turnover and core FFO of $1.03 a share. The supply estimate matters for 2027 underwriting. Vivmark estimates new deliveries in its markets at about 1.2% of existing stock next year. Executives said rents rose, citing, among other things, a roughly $1,900 monthly gap between renting and owning in the regions where it operates.
Vivmark is the largest publicly traded apartment owner in the country, according to Commercial Observer, with more than 184,000 apartments in the San Francisco, Washington, D.C., Boston and New York areas. It finished two wholly owned projects totaling 761 apartments in the quarter and has one under construction with 281 more, against a $4.4 billion development pipeline.
Multifamily sales volume jumped 139% in the quarter, and apartment values fell 4.6% year over year, as Private Real Estate Daily previously reported, citing MSCI data.
Executives said the fourth quarter, the first complete period for the combined company, will be the better starting benchmark.
Reported by the Sectors desk from Commercial Observer and Private Real Estate Daily archive (MSCI data). Published . Corrections