Mizuho expects these regional challenges to drive a deceleration in same-store revenue and funds from operations (FFO) in 2026 for the residential property owner. The firm also cited AvalonBay's suburban-focused portfolio as facing tougher rent comparisons and return-to-office related headwinds that could impact performance. While acknowledging that AvalonBay's development pipeline continues to create value, Mizuho noted that development yields face pressure from slower lease-ups and rising input costs. In other recent news, AvalonBay Communities reported its second-quarter 2025 earnings, showcasing a significant earnings per share (EPS) beat. The company achieved an EPS of $1.88, exceeding the forecasted $1.20, representing a 56.67% surprise. However, the revenue fell short of expectations, coming in at $689.9 million compared to the anticipated $757.59 million, marking an 8.93% miss.