EX-99.1 2 q22025ex-991.htm EX-99.1
Exhibit 99.1.2
For Immediate News Release
July 30, 2025
AVALONBAY COMMUNITIES, INC.
PROVIDES Q2 2025 RESULTS
AND UPDATES FULL YEAR 2025 OUTLOOK
(Arlington, VA) AvalonBay Communities, Inc. (NYSE: AVB) (the “Company”) reported Earnings per Share – diluted (“EPS”), Funds from Operations attributable to common stockholders - diluted (“FFO”) per share and Core FFO per share (as defined in this release) for the three and six months ended June 30, 2025 and 2024 as detailed below.

|  | Q2 2025 |  | Q2 2024 |  | % Change
EPS |  | $ | 1.88 |  |  | $ | 1.78 |  |  | 5.6 | %
FFO per share (1) | $ | 2.80 |  |  | $ | 2.75 |  |  | 1.8 | %
Core FFO per share (1) | $ | 2.82 |  |  | $ | 2.77 |  |  | 1.8 | %
|  | YTD 2025 |  | YTD 2024 |  | % Change
EPS |  | $ | 3.54 |  |  | $ | 3.00 |  |  | 18.0 | %
FFO per share (1) | $ | 5.59 |  |  | $ | 5.48 |  |  | 2.0 | %
Core FFO per share (1) | $ | 5.65 |  |  | $ | 5.47 |  |  | 3.3 | %
(1) For additional detail on reconciling items between net income attributable to common stockholders, FFO and Core FFO, see Definitions and Reconciliations, table 3.

The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the three months ended June 30, 2025 to its results for the prior year period:

Q2 2025 Results Compared to Q2 2024
| Per Share
| EPS | FFO | Core FFO
Q2 2024 per share reported results | $ | 1.78 |  | $ | 2.75 |  | $ | 2.77 |
Same Store Residential NOI (1) | 0.09 |  | 0.09 |  | 0.09 |
Other Residential and Commercial NOI | 0.06 |  | 0.06 |  | 0.06 |
Overhead & other | (0.03) |  | (0.03) |  | (0.03) |
Capital markets activity | (0.05) |  | (0.07) |  | (0.07) |
Real estate gains, depreciation expense & other | 0.03 |  | — |  | — |
Q2 2025 per share reported results | $ | 1.88 |  | $ | 2.80 |  | $ | 2.82 |
(1) Consists of increases of $0.14 in revenue and $0.05 in operating expenses.

The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the three months ended June 30, 2025 to its April 2025 outlook:

Q2 2025 Results Compared to April 2025 Outlook
| Per Share
| EPS | FFO | Core FFO
Projected per share (1) | $ | 1.83 |  | $ | 2.74 |  | $ | 2.77 |
Same Store Residential NOI (2) | 0.07 |  | 0.07 |  | 0.07 |
Other Stabilized NOI | (0.01) |  | (0.01) |  | (0.01) |
Overhead & other | (0.01) |  | (0.01) |  | (0.01) |
Non-core items (3) | 0.01 |  | 0.01 |  | — |
Real estate gains, depreciation expense & other | (0.01) |  | — |  | — |
Q2 2025 per share reported results | $ | 1.88 |  | $ | 2.80 |  | $ | 2.82 |
(1) The mid-point of the Company's April 2025 outlook.
(2) Consists of favorable revenue of $0.02 and operating expenses of $0.05. Approximately $0.02 of the operating expense benefit is timing related and expected to be incurred in Q3.
(3) For detail of non-core items, see Definitions and Reconciliations, table 3.

The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the six months ended June 30, 2025 to its results for the prior year period:

YTD 2025 Results Compared to YTD 2024
| Per Share
| EPS | FFO | Core FFO
YTD 2024 per share reported results | $ | 3.00 |  | $ | 5.48 |  | $ | 5.47 |
Same Store Residential NOI (1) | 0.17 |  | 0.17 |  | 0.17 |
Other Residential NOI | 0.16 |  | 0.16 |  | 0.16 |
Overhead & other | (0.02) |  | (0.02) |  | (0.02) |
Capital markets activity | (0.12) |  | (0.13) |  | (0.13) |
Non-core items (2) | (0.07) |  | (0.07) |  | — |
Real estate gains, depreciation expense and other | 0.42 |  | — |  | — |
YTD 2025 per share reported results | $ | 3.54 |  | $ | 5.59 |  | $ | 5.65 |
(1) Consists of increases of $0.28 in revenue and $0.11 in operating expenses.
(2) For detail of non-core items, see Definitions and Reconciliations, table 3.

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1

Same Store Operating Results for the Three Months Ended June 30, 2025 Compared to the Prior Year Period
Same Store Residential revenue increased $19,966,000, or 3.0%, to $689,100,000. Same Store Residential operating expenses increased $7,388,000, or 3.6%, to $211,920,000 and Same Store Residential NOI increased $12,578,000, or 2.7%, to $477,180,000.
Same Store Operating Results for the Six Months Ended June 30, 2025 Compared to the Prior Year Period
Same Store Residential revenue increased $39,892,000, or 3.0%, to $1,371,215,000. Same Store Residential operating expenses increased $15,522,000, or 3.8%, to $423,130,000 and Same Store Residential NOI increased $24,370,000, or 2.6%, to $948,085,000.
Development Activity
During the three and six months ended June 30, 2025, the Company completed the development of Avalon Princeton on Harrison, located in Princeton, NJ. Avalon Princeton on Harrison contains 200 apartment homes and was constructed for a Total Capital Cost of $79,000,000.
During the three months ended June 30, 2025, the Company started the construction of two apartment communities:
•Avalon Kendall, located in Kendall, FL; and
•Avalon Brier Creek, located in Durham, NC.
These communities are expected to contain an aggregate of 624 apartment homes. Estimated Total Capital Cost at completion for these Development communities is $210,000,000.
In addition, during the three months ended June 30, 2025, the Company accelerated commencement of the planned second phase of the Avalon Pleasanton development, located in Pleasanton, CA. The expanded development of Avalon Pleasanton is expected to add 280 apartment homes and $160,000,000 in estimated Total Capital Costs at completion for a total of 362 apartment homes and an estimated Total Capital Cost at completion of $218,000,000 for the development.
During the six months ended June 30, 2025, the Company started the construction of four apartment communities and expanded the development of Avalon Pleasanton. These communities are expected to contain an aggregate of 1,495 apartment homes. Estimated Total Capital Cost at completion for these Development communities is $610,000,000.
At June 30, 2025, the Company had 20 wholly-owned Development communities under construction that are expected to contain 7,299 apartment homes and 69,000 square feet of commercial space. Estimated Total Capital Cost at completion for these Development communities is $2,780,000,000.
Disposition Activity
As previously disclosed, during the three months ended June 30, 2025, the Company sold Avalon Wesmont Station I & II, two wholly-owned communities with 406 apartment homes and 18,000 square feet of commercial space, located in Wood-Ridge, NJ. The communities were sold for $161,500,000, resulting in a gain in accordance with GAAP of $99,636,000 and an Economic Gain of $71,648,000.
During the six months ended June 30, 2025, the Company sold three wholly-owned communities containing an aggregate of 508 apartment homes and 18,000 square feet of commercial space. These communities were sold for $226,600,000, resulting in a gain in accordance with GAAP of $155,926,000 and an Economic Gain of $109,628,000.
Acquisition Activity
As previously disclosed, during the three months ended June 30, 2025, the Company acquired six communities located in the Dallas-Fort Worth metropolitan area. In aggregate, these communities contain 1,844 apartment homes and were acquired for a stated purchase price of $431,500,000, funded in part by the issuance of 1,060,000 DownREIT Units, valued at $225 per unit.
During the six months ended June 30, 2025, the Company acquired eight communities containing 2,701 apartment homes for a total purchase price of $618,500,000, which includes the stated value of the DownREIT units issued for the Dallas-Fort Worth portfolio.
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Structured Investment Program ("SIP") Activity
During the three months ended June 30, 2025, the Company did not enter into any new SIP commitments. During the six months ended June 30, 2025, the Company entered into one new SIP commitment, agreeing to provide an investment of up to $20,000,000 in a multifamily development project in Northern California. See full release for additional detail.
In July 2025, the Company entered into one new SIP commitment, agreeing to provide an investment of up to $28,000,000 in a multifamily development project in Southeast Florida.
Liquidity and Capital Markets
At June 30, 2025, the Company had $102,825,000 in unrestricted cash and cash equivalents.
During the three months ended June 30, 2025, the Company had the following debt activity:
•The Company repaid $525,000,000 principal amount of its 3.45% coupon unsecured notes at par upon maturity.
•As previously disclosed, the Company entered into a $450,000,000 term loan that matures in April 2029, which was fully drawn in May 2025. The term loan is indexed to SOFR plus a spread, currently SOFR + 0.78% per annum. The Company hedged the term loan interest rate variability with interest rate swaps, resulting in an effective fixed rate of 4.46% after deferred fees and issuance costs.
•As previously disclosed, the Company amended and restated its Credit Facility to (i) increase its borrowing capacity to $2,500,000,000 from $2,250,000,000, and (ii) extend the maturity date to April 2030 from September 2026. Subsequent to the amendment, the Company's cost of borrowing under the Credit Facility is SOFR + 0.705%. In addition, the Company increased the capacity of its unsecured commercial paper program to $1,000,000,000 from $500,000,000, with the terms of the program otherwise remaining unchanged.
As of June 30, 2025, the Company did not have any borrowings outstanding under its Credit Facility, and had outstanding borrowings of $664,637,000 under its unsecured commercial paper note program. The commercial paper program is backstopped by the Company's commitment to maintain available borrowing capacity under its Credit Facility in an amount equal to outstanding borrowings under the program.
The Company’s annualized Net Debt-to-Core EBITDAre (as defined in this release) for the second quarter of 2025 was 4.4 times and Unencumbered NOI (as defined in this release) for the six months ended June 30, 2025 was 95%.
In July 2025, the Company issued $400,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds before offering costs of $394,888,000. The notes mature in August 2035 and were issued with a 5.00% coupon. The effective interest rate of the notes is 5.05%, considering the net proceeds and including the impact of offering costs and hedging activity.
Full Year and Third Quarter 2025 Financial Outlook
For its third quarter and full year 2025 financial outlook, the Company expects the following:

Projected EPS, Projected FFO and Projected Core FFO Outlook (1)
|  | Q3 2025 |  | Full Year 2025
|  | Low |  | High |  | Low |  | High
Projected EPS |  | $ | 2.41 |  | — | $ | 2.51 |  |  | $ | 7.75 |  | — | $ | 8.15 |
Projected FFO per share | $ | 2.72 |  | — | $ | 2.82 |  |  | $ | 11.06 |  | — | $ | 11.46 |
Projected Core FFO per share | $ | 2.75 |  | — | $ | 2.85 |  |  | $ | 11.19 |  | — | $ | 11.59 |
(1) See Definitions and Reconciliations, table 9, for reconciliations of Projected FFO per share and Projected Core FFO per share to Projected EPS.
Full Year 2025 Financial Outlook
|  |  |  | Full Year 2025
|  |  |  | vs. Full Year 2024
|  |  |  |  |  | Low |  | High
Same Store: |  |  |  |  |  |  |  |
Residential revenue change |  |  |  | 2.3% | — | 3.3%
Residential Opex change |  |  |  | 2.6% | — | 3.6%
Residential NOI change |  |  |  | 2.0% | — | 3.4%

The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the second quarter 2025 to the mid-point of its third quarter 2025 financial outlook:
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Q2 2025 Results Compared to Q3 2025 Outlook
| Per Share
| EPS | FFO | Core FFO
Q2 2025 per share reported results | $ | 1.88 |  | $ | 2.80 |  | $ | 2.82 |
Same Store Residential revenue | 0.03 |  | 0.03 |  | 0.03 |
Same Store Residential Opex | (0.08) |  | (0.08) |  | (0.08) |
Commercial NOI | 0.01 |  | 0.01 |  | 0.01 |
NOI from new Development | 0.02 |  | 0.02 |  | 0.02 |
Capital markets activity | (0.02) |  | (0.02) |  | (0.02) |
Overhead and other | 0.02 |  | 0.02 |  | 0.02 |
Non-core items (1) | (0.01) |  | (0.01) |  | — |
Gain on sale of real estate, depreciation expense, and casualty loss | 0.61 |  | — |  | — |
Projected per share - Q3 2025 outlook (2) | $ | 2.46 |  | $ | 2.77 |  | $ | 2.80 |
(1) For detail of non-core items, see Definitions and Reconciliations, table 3 and table 9.
(2) Represents the mid-point of the Company's outlook.

The following table compares the mid-point of the Company’s July 2025 full year outlook for EPS, FFO per share and Core FFO per share to its February 2025 outlook:

July 2025 Full Year Outlook Compared to February 2025 Full Year Outlook
| Per Share
| EPS | FFO | Core FFO
Projected per share - February 2025 outlook (1) | $ | 8.49 |  | $ | 11.32 |  | $ | 11.39 |
Same Store Residential revenue | (0.02) |  | (0.02) |  | (0.02) |
Same Store Residential Opex | 0.06 |  | 0.06 |  | 0.06 |
Commercial NOI | 0.01 |  | 0.01 |  | 0.01 |
NOI from new Development | (0.04) |  | (0.04) |  | (0.04) |
Capital markets activity | 0.02 |  | 0.02 |  | 0.02 |
Overhead and other | (0.03) |  | (0.03) |  | (0.03) |
Non-core items (2) | (0.06) |  | (0.06) |  | — |
Gain on sale of real estate, depreciation expense, and casualty loss | (0.48) |  | — |  | — |
Projected per share - July 2025 outlook (1) | $ | 7.95 |  | $ | 11.26 |  | $ | 11.39 |
(1) Represents the mid-point of the Company's outlook.
(2) For detail of non-core items, see Definitions and Reconciliations, table 3 and table 9.

Other Matters
The Company will hold a conference call on July 31, 2025 at 1:00 PM ET to review and answer questions about this release, its second quarter 2025 results, the Attachments (described below) and related matters. To participate on the call, dial 877-407-9716.
To hear a replay of the call, which will be available from July 31, 2025 at 6:00 PM ET to August 31, 2025, dial 844-512-2921 and use replay passcode: 13750084. A webcast of the conference call will also be available at https://investors.avalonbay.com, and an online playback of
the webcast will be available for at least seven days following the call.
The Company produces Earnings Release Attachments (the "Attachments") that provide detailed information regarding operating, development, redevelopment, disposition and acquisition activity. These Attachments are considered a part of this earnings release and are available in full with this earnings release via the Company's website at https://investors.avalonbay.com. To receive future press releases via e-mail, please submit a request through https://investors.avalonbay.com/news-events/email-alerts.
In addition to the Attachments, the Company is providing a teleconference presentation that will be available on the Company's website at https://investors.avalonbay.com subsequent to this release and before the market opens on July 31, 2025.
About AvalonBay Communities, Inc.
AvalonBay Communities, Inc., a member of the S&P 500, is an equity REIT that develops, redevelops, acquires and manages apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. As of June 30, 2025, the Company owned or held a direct or indirect ownership interest in 315 apartment communities containing 97,212 apartment homes in 11 states and the District of Columbia, of which 20 communities were under development. More information may be found on the Company’s website at https://www.avalonbay.com. For additional information, please contact Matthew Grover, Senior Director of Investor Relations, at 703-317-4524.
Forward-Looking Statements
This release, including its Attachments, contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company's forward-looking statements generally use the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “project,” “plan,” “may,” “shall,” “will,” “pursue,” “outlook” and other similar expressions that indicate future events and trends and do
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not report historical matters. These statements, among other things, address the Company’s intent, belief, forecasts, assumptions or expectations with respect to: development, redevelopment, acquisition or disposition of communities; the timing and cost of completion of communities under development or redevelopment; the timing of lease-up, occupancy and stabilization of communities; the pursuit of land for future development; the anticipated operating performance of communities; cost, yield, revenue, NOI and earnings estimates; the impact of landlord-tenant laws and rent regulations, including rent caps; the Company’s expansion into new regions; declaration or payment of dividends; joint venture activities; the Company’s policies regarding investments, indebtedness, acquisitions, dispositions, financings and other matters; the Company’s qualification as a REIT under the Internal Revenue Code of 1986, as amended; the real estate markets in regions where the Company operates and in general; the availability of debt and equity financing; interest rates, inflation, tariffs and other economic conditions and their potential impacts; trends affecting the Company’s financial condition or results of operations; regulatory changes that may affect the Company; and the impact of legal proceedings.
The Company cannot assure the future results or outcome of the matters described in these statements; rather these statements merely reflect the Company’s current expectations of the outcomes of the matters discussed. The Company does not undertake a duty to update these forward-looking statements, and therefore they may not represent the Company’s estimates and assumptions after the date of this release. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the Company’s control. These risks, uncertainties and other factors may cause the Company’s actual results, performance or achievements to differ materially from the anticipated future results, performance or achievements expressed or implied by these forward-looking statements. You should carefully review the discussion under Part I, Item 1A. “Risk Factors” of the Company’s Form 10-K for the year ended December 31, 2024 and Part II, Item 1A. “Risk Factors” in subsequent quarterly reports on Form 10-Q for further discussion of risks associated with forward-looking statements.
Some of the factors that could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, the following: the Company may fail to secure development opportunities due to an inability to reach agreements with third parties to obtain land at attractive prices or to obtain desired zoning
and other local approvals; the Company may abandon or defer development opportunities for a number of reasons, including changes in local market conditions which make development less desirable, increases in costs of development, increases in the cost of capital or lack of capital availability, resulting in losses; construction costs of a community may exceed original estimates; the Company may not complete construction and lease-up of communities under development or redevelopment on schedule, resulting in increased interest costs and construction costs and a decrease in expected rental revenues; occupancy rates and market rents may be adversely affected by competition and local economic and market conditions which are beyond the Company’s control; the Company’s cash flows from operations and access to cost-effective capital may be insufficient for the development of the Company’s pipeline, which could limit the Company’s pursuit of opportunities; an outbreak of disease or other public health event may affect the multifamily industry and general economy; the Company’s cash flows may be insufficient to meet required payments of principal and interest, and the Company may be unable to refinance existing indebtedness or the terms of such refinancing may not be as favorable as the terms of existing indebtedness; the Company may be unsuccessful in its management of joint ventures and the REIT vehicles that are used with certain joint ventures; the Company may experience a casualty loss, natural disaster or severe weather event; new or existing laws and regulations implementing rent control or rent stabilization, or otherwise limiting the Company’s ability to increase rents, charge fees or evict tenants, may impact its revenue or increase costs; the Company’s expectations, estimates and assumptions as of the date of this filing regarding legal proceedings may change; the Company’s assumptions and expectations in its financial outlook may prove to be too optimistic; the Company may choose to pay dividends in its stock instead of cash, which may result in stockholders having to pay taxes with respect to such dividends in excess of the cash received, if any; and investments made under the SIP may not be repaid as expected or the development may not be completed on schedule, which could require the Company to engage in litigation, foreclosure actions, and/or first party project completion to recover its investment, which may not be recovered in full or at all in such event.
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Definitions and Reconciliations
Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined, reconciled and further explained on Attachment 13, Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. Attachment 13 is included in the full earnings release available at the Company’s website at https://investors.avalonbay.com. This wire distribution includes only the following definitions and reconciliations.
Average Monthly Revenue per Occupied Home is calculated by the Company as Residential revenue in accordance with GAAP, divided by the weighted average number of occupied apartment homes.
Commercial represents results attributable to the non-apartment components of the Company's mixed-use communities and other non-residential operations.
Development is composed of consolidated communities that are either currently under construction, or were under construction and were completed during the current year. These communities may be partially or fully complete and operating.
DownREIT Units means units representing limited partnership interests in the "downREIT" partnership that acquired the Dallas-Fort Worth assets. Each DownREIT Unit will be entitled to receive quarterly distributions at the same rate as quarterly dividends on a share of the Company’s common stock (pro rated for the time outstanding during the first quarter of issuance). Following the one-year anniversary of the closing date, each holder of a DownREIT Unit will have the right to initiate a transaction in which each DownREIT Unit may be redeemed for a cash amount related to the then-current trading price of one share of the Company’s common stock or, at the Company’s election, one share of the Company’s common stock.
EBITDA, EBITDAre and Core EBITDAre are considered by management to be supplemental measures of our financial performance. EBITDA is defined by the Company as net income or loss computed in accordance with GAAP before interest expense, income taxes, depreciation and amortization. EBITDAre is calculated by the Company in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), as EBITDA plus or minus losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property, with adjustments to reflect the Company's share of EBITDAre of unconsolidated entities. Core EBITDAre is the Company’s EBITDAre as adjusted for non-core items outlined in the table below. By further adjusting for items that are not considered part of the Company’s core business operations, Core EBITDAre can help one compare the core operating and financial performance of the Company between periods. A reconciliation of EBITDA, EBITDAre and Core EBITDAre to net income is as follows (dollars in thousands):

TABLE 1
|  | Q2
|  | 2025
Net income |  | $ | 269,855 |
Interest expense and loss on extinguishment of debt |  | 67,026 |
Income tax benefit |  | (531) |
Depreciation expense |  | 231,730 |
EBITDA |  | $ | 568,080 |
Casualty loss |  | 858 |
Gain on sale of communities |  | (99,457) |
Unconsolidated entity EBITDAre adjustments (1) |  | 4,094 |
EBITDAre |  | $ | 473,575 |
Unconsolidated entity losses, net |  | 1,203 |
Structured Investment Program loan reserve |  | (247) |
Advocacy contributions |  | 87 |
Hedge accounting activity |  | 3 |
Severance related costs |  | 26 |
Expensed transaction, development and other pursuit costs, net of recoveries |  | 1,407 |
Other real estate activity |  | (3,614) |
Legal settlements and costs |  | 4,098 |
Core EBITDAre |  | $ | 476,538 |
(1) Includes joint venture interest, taxes, depreciation, gain on dispositions of depreciated real estate and impairment losses, if applicable, included in net income.

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Economic Gain is calculated by the Company as the gain on sale in accordance with GAAP, less accumulated depreciation through the date of sale and any other adjustments that may be required under GAAP accounting. Management generally considers Economic Gain to be an appropriate supplemental measure to gain on sale in accordance with GAAP because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold community. The Economic Gain for disposed communities is based on their respective final settlement statements. A reconciliation of the aggregate Economic Gain to the aggregate gain on sale in accordance with GAAP for the wholly-owned communities disposed of during the three and six months ended June 30, 2025 is as follows (dollars in thousands):

TABLE 2
| Q2 2025 |  | YTD 2025
Gain on sale in accordance with GAAP | $ | 99,636 |  |  | $ | 156,112 |
Accumulated Depreciation and Other | (27,988) |  |  | (46,298) |
Economic Gain | $ | 71,648 |  |  | $ | 109,814 |

Economic Occupancy is defined as total possible Residential revenue less vacancy loss as a percentage of total possible Residential revenue. Total possible Residential revenue (also known as “gross potential”) is determined by valuing occupied units at contract rates and vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant apartments at their Market Rents, Economic Occupancy takes into account the fact that apartment homes of different sizes and locations within a community have different economic impacts on a community’s gross revenue.
FFO and Core FFO are generally considered by management to be appropriate supplemental measures of our operating and financial performance. FFO is calculated by the Company in accordance with the definition adopted by Nareit. FFO is calculated by the Company as Net income or loss attributable to common stockholders computed in accordance with GAAP, adjusted for gains or losses on sales of previously depreciated operating communities, cumulative effect of a change in accounting principle, impairment write-downs of depreciable real estate assets, write-downs of investments in affiliates due to a decrease in the value of depreciable real estate assets held by those affiliates and depreciation of real estate assets, including similar adjustments for unconsolidated partnerships and joint ventures, including those from a change in control. FFO can help one compare the operating and financial performance of a real estate company between periods or as compared to different companies because adjustments such as (i) gains or losses on sales of previously depreciated property or (ii) real estate depreciation may impact comparability between companies as the amount and timing of these or similar items can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates. Core FFO is the Company's FFO as adjusted for non-core items outlined in the table below. By further adjusting for items that we do not consider to be part of our core business operations, Core FFO can help with the comparison of core operating performance of the Company between periods. A reconciliation of Net income attributable to common stockholders to FFO and to Core FFO is as follows (dollars in thousands):
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TABLE 3
|  | Q2 |  | Q2 |  | YTD |  | YTD
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Net income attributable to common stockholders |  | $ | 268,665 |  |  | $ | 253,934 |  |  | $ | 505,262 |  |  | $ | 427,383 |
Depreciation - real estate assets, including joint venture adjustments |  | 230,264 |  |  | 206,338 |  |  | 446,891 |  |  | 417,685 |
Income attributable to noncontrolling interests |  | 1,190 |  |  | — |  |  | 1,190 |  |  | — |
Gain on sale of previously depreciated real estate |  | (99,457) |  |  | (68,556) |  |  | (155,926) |  |  | (68,486) |
Casualty loss on real estate |  | 858 |  |  | — |  |  | 858 |  |  | 2,935 |
FFO |  | 401,520 |  |  | 391,716 |  |  | 798,275 |  |  | 779,517 |
Adjusting items: |  |  |  |  |  |  |  |
Unconsolidated entity losses (gains), net (1) |  | 1,223 |  |  | (1,177) |  |  | 2,465 |  |  | (9,562) |
Structured Investment Program loan reserve (2) |  | (247) |  |  | (16) |  |  | (230) |  |  | 42 |
Hedge accounting activity |  | 3 |  |  | 16 |  |  | 22 |  |  | 55 |
Advocacy contributions |  | 87 |  |  | 2,107 |  |  | 87 |  |  | 2,182 |
Executive transition compensation costs |  | — |  |  | — |  |  | — |  |  | 104 |
Severance related costs |  | 26 |  |  | 1,030 |  |  | 202 |  |  | 1,241 |
Expensed transaction, development and other pursuit costs, net of recoveries (3) |  | 1,407 |  |  | 471 |  |  | 5,295 |  |  | 3,605 |
Other real estate activity (4) |  | (3,614) |  |  | (160) |  |  | (3,747) |  |  | (281) |
Legal settlements and costs (5) |  | 4,098 |  |  | 644 |  |  | 5,576 |  |  | 1,508 |
Income tax benefit |  | (531) |  |  | (62) |  |  | (647) |  |  | (84) |
Core FFO |  | $ | 403,972 |  |  | $ | 394,569 |  |  | $ | 807,298 |  |  | $ | 778,327 |
Weighted average common shares outstanding - diluted |  | 143,292,306 |  |  | 142,389,866 |  |  | 142,889,432 |  |  | 142,306,310 |
Earnings per common share - diluted |  | $ | 1.88 |  |  | $ | 1.78 |  |  | $ | 3.54 |  |  | $ | 3.00 |
FFO per common share - diluted |  | $ | 2.80 |  |  | $ | 2.75 |  |  | $ | 5.59 |  |  | $ | 5.48 |
Core FFO per common share - diluted |  | $ | 2.82 |  |  | $ | 2.77 |  |  | $ | 5.65 |  |  | $ | 5.47 |
(1) Amounts consist primarily of net unrealized losses (gains) on third-party property technology and sustainability fund investments.
(2) Changes are the expected credit losses associated with the Company's lending commitments primarily under its SIP. The timing and amount of any actual losses that will be incurred, if any, is to be determined.
(3) Amount for YTD 2025 includes a write-off of $3,668 for one development opportunity that the Company determined is no longer probable.
(4) Amounts for Q2 and YTD 2025 consist primarily of the gain on the sale of a development right. Amounts for the Q2 and YTD 2024 consist primarily of gains on sale of other non-operating real estate, as well as the imputed carry cost of for-sale residential condominiums at The Park Loggia. We compute this adjustment by multiplying the total capitalized cost of the unsold for-sale residential condominiums by our weighted average unsecured debt effective interest rate.
(5) Amounts for Q2 and YTD 2025 and Q2 and YTD 2024 include legal costs and legal settlements.

Interest Coverage is calculated by the Company as Core EBITDAre divided by interest expense. Interest Coverage is presented by the Company because it provides rating agencies and investors an additional means of comparing our ability to service debt obligations to that of other companies. A calculation of Interest Coverage for the three months ended June 30, 2025 is as follows (dollars in thousands):

TABLE 4
Core EBITDAre (1) | $ | 476,538 |
Interest expense (2) | $ | 67,026 |
Interest Coverage | 7.1 times
(1) For additional detail, see Definitions and Reconciliations, table 1.
(2) Excludes the impact of non-core hedge accounting activity.

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Market Cap Rate is defined by the Company as Projected NOI of a single community for the first 12 months of operations (assuming no repositioning), less an estimate of typical capital expenditure allowance per apartment home, divided by the gross sales price for the community. Projected NOI, as referred to above, represents management’s estimate of projected rental revenue minus projected operating expenses before interest, income taxes (if any), depreciation and amortization. For this purpose, management’s projection of operating expenses for the community includes a management fee of 2.5% and an estimate of typical market costs for insurance, payroll and other operating expenses for which the Company may have proprietary advantages not available to a typical buyer. The Market Cap Rate, which may be determined in a different manner by others, is a measure frequently used in the real estate industry when determining the appropriate purchase price for a property or estimating the value for a property. Buyers may assign different Market Cap Rates to different communities when determining the appropriate value because they (i) may project different rates of change in operating expenses and capital expenditure estimates and (ii) may project different rates of change in future rental revenue due to different estimates for changes in rent and occupancy levels. The weighted average Market Cap Rate is weighted based on the gross sales price of each community.
Market Rents as reported by the Company are based on the current market rates set by the Company based on its experience in renting apartments and publicly available market data. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions.
Net Debt-to-Core EBITDAre is calculated by the Company as total debt (secured and unsecured notes, and the Company's Credit Facility and commercial paper program) that is consolidated for financial reporting purposes, less consolidated cash and restricted cash, divided by annualized second quarter 2025 Core EBITDAre. A calculation of Net Debt-to-Core EBITDAre is as follows (dollars in thousands):

TABLE 5
Total debt principal (1) | $ | 8,714,999 |
Cash and cash equivalents and restricted cash | (257,349) |
Net debt | $ | 8,457,650 |
Core EBITDAre (2) | $ | 476,538 |
Core EBITDAre, annualized | $ | 1,906,152 |
Net Debt-to-Core EBITDAre | 4.4 times
(1) Balance at June 30, 2025 excludes $39,765 of debt discount and deferred financing costs as reflected in unsecured notes, net, $14,776 of debt discount and deferred financing costs as reflected in notes payable, net, and $363 of commercial paper discount as reflected in unsecured credit facility and commercial paper, net on the Condensed Consolidated Balance Sheets.
(2) For additional detail, see Definitions and Reconciliations, table 1.

NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excluding corporate-level income (including management, development and other fees), property management and other indirect operating expenses, net of corporate income, expensed transaction, development and other pursuit costs, net of recoveries, interest expense, net, loss on extinguishment of debt, net, general and administrative expense, income from unconsolidated investments, depreciation expense, income tax (benefit) expense, casualty loss, (gain) loss on sale of communities, other real estate activity and net operating income from real estate assets sold or held for sale. The Company considers NOI to be an important and appropriate supplemental performance measure to net income because it helps both investors and management to understand the core operations of a community or communities prior to the allocation of any corporate-level property management overhead or financing-related costs. NOI reflects the operating performance of a community and allows for an easier comparison of the operating performance of individual assets or groups of assets. In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impact to overhead as a result of acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets.
Residential NOI represents results attributable to the Company's apartment rental operations, including parking and other ancillary Residential revenue. Reconciliations of NOI and Residential NOI to net income, as well as a breakdown of Residential NOI by operating segment, are as follows (dollars in thousands):
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TABLE 6
|  | Q2 |  | Q2 |  | Q1 |  | Q4 |  |  |  | YTD |  | YTD
|  | 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  | 2025 |  | 2024
Net income |  | $ | 269,855 |  |  | $ | 254,007 |  |  | $ | 236,597 |  |  | $ | 282,092 |  |  |  |  | $ | 506,452 |  |  | $ | 427,564 |
Property management and other indirect operating expenses, net of corporate income |  | 38,153 |  |  | 37,553 |  |  | 36,100 |  |  | 49,688 |  |  |  |  | 74,253 |  |  | 72,757 |
Expensed transaction, development and other pursuit costs, net of recoveries |  | 2,493 |  |  | 1,417 |  |  | 4,744 |  |  | 11,106 |  |  |  |  | 7,237 |  |  | 5,662 |
Interest expense, net |  | 64,801 |  |  | 57,078 |  |  | 59,864 |  |  | 58,976 |  |  |  |  | 124,665 |  |  | 111,844 |
General and administrative expense |  | 22,997 |  |  | 19,586 |  |  | 19,780 |  |  | 17,691 |  |  |  |  | 42,777 |  |  | 39,917 |
Loss (income) from unconsolidated investments |  | 1,052 |  |  | (866) |  |  | 999 |  |  | 1,614 |  |  |  |  | 2,051 |  |  | (8,595) |
SIP interest income |  | (6,937) |  |  | (3,956) |  |  | (6,113) |  |  | (5,907) |  |  |  |  | (13,050) |  |  | (7,074) |
Depreciation expense |  | 231,730 |  |  | 206,923 |  |  | 217,888 |  |  | 215,539 |  |  |  |  | 449,618 |  |  | 419,192 |
Income tax benefit |  | (531) |  |  | (62) |  |  | (116) |  |  | (253) |  |  |  |  | (647) |  |  | (84) |
Casualty loss |  | 858 |  |  | — |  |  | — |  |  | — |  |  |  |  | 858 |  |  | 2,935 |
Gain on sale of communities |  | (99,457) |  |  | (68,556) |  |  | (56,469) |  |  | (121,841) |  |  |  |  | (155,926) |  |  | (68,486) |
Other real estate activity |  | (3,637) |  |  | (181) |  |  | (155) |  |  | (117) |  |  |  |  | (3,792) |  |  | (322) |
NOI from real estate assets sold or held for sale |  | (7,720) |  |  | (19,684) |  |  | (10,077) |  |  | (12,135) |  |  |  |  | (17,797) |  |  | (40,298) |
NOI |  | 513,657 |  |  | 483,259 |  |  | 503,042 |  |  | 496,453 |  |  |  |  | 1,016,699 |  |  | 955,012 |
Commercial NOI |  | (7,190) |  |  | (8,516) |  |  | (9,902) |  |  | (8,603) |  |  |  |  | (17,092) |  |  | (16,056) |
Residential NOI |  | $ | 506,467 |  |  | $ | 474,743 |  |  | $ | 493,140 |  |  | $ | 487,850 |  |  |  |  | $ | 999,607 |  |  | $ | 938,956 |
Residential NOI |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same Store: |  |  |  |  |  |  |  |  |  |  |  |  |  |
New England |  | $ | 64,614 |  |  | $ | 63,790 |  |  | $ | 62,694 |  |  | $ | 63,917 |  |  |  |  | $ | 127,308 |  |  | $ | 125,280 |
Metro NY/NJ |  | 96,074 |  |  | 93,582 |  |  | 93,459 |  |  | 94,672 |  |  |  |  | 189,533 |  |  | 185,566 |
Mid-Atlantic |  | 72,860 |  |  | 69,296 |  |  | 72,117 |  |  | 71,145 |  |  |  |  | 144,977 |  |  | 138,132 |
Southeast FL |  | 15,160 |  |  | 15,530 |  |  | 17,089 |  |  | 15,125 |  |  |  |  | 32,249 |  |  | 31,021 |
Denver, CO |  | 7,231 |  |  | 7,249 |  |  | 7,461 |  |  | 7,430 |  |  |  |  | 14,692 |  |  | 14,602 |
Pacific NW |  | 30,748 |  |  | 29,234 |  |  | 30,427 |  |  | 29,640 |  |  |  |  | 61,175 |  |  | 57,857 |
N. California |  | 76,188 |  |  | 74,590 |  |  | 76,323 |  |  | 75,159 |  |  |  |  | 152,511 |  |  | 149,289 |
S. California |  | 106,164 |  |  | 103,005 |  |  | 103,415 |  |  | 103,236 |  |  |  |  | 209,579 |  |  | 205,591 |
Other Expansion Regions |  | 8,141 |  |  | 8,326 |  |  | 7,920 |  |  | 7,856 |  |  |  |  | 16,061 |  |  | 16,377 |
Total Same Store |  | 477,180 |  |  | 464,602 |  |  | 470,905 |  |  | 468,180 |  |  |  |  | 948,085 |  |  | 923,715 |
Other Stabilized |  | 25,275 |  |  | 9,832 |  |  | 19,510 |  |  | 17,510 |  |  |  |  | 44,785 |  |  | 14,940 |
Development/Redevelopment |  | 4,012 |  |  | 309 |  |  | 2,725 |  |  | 2,160 |  |  |  |  | 6,737 |  |  | 301 |
Residential NOI |  | $ | 506,467 |  |  | $ | 474,743 |  |  | $ | 493,140 |  |  | $ | 487,850 |  |  |  |  | $ | 999,607 |  |  | $ | 938,956 |

NOI as reported by the Company does not include the operating results from assets sold or classified as held for sale. A reconciliation of NOI from communities sold or classified as held for sale is as follows (dollars in thousands):

TABLE 7
|  | Q2 |  | Q2 |  | Q1 |  | Q4 |  |  |  | YTD |  | YTD
|  | 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  | 2025 |  | 2024
Revenue from real estate assets sold or held for sale |  | $ | 11,622 |  |  | $ | 29,576 |  |  | $ | 14,852 |  |  | $ | 18,186 |  |  |  |  | $ | 26,473 |  |  | $ | 59,880 |
Operating expenses from real estate assets sold or held for sale |  | (3,902) |  |  | (9,892) |  |  | (4,775) |  |  | (6,051) |  |  |  |  | (8,676) |  |  | (19,582) |
NOI from real estate assets sold or held for sale |  | $ | 7,720 |  |  | $ | 19,684 |  |  | $ | 10,077 |  |  | $ | 12,135 |  |  |  |  | $ | 17,797 |  |  | $ | 40,298 |

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Commercial NOI is composed of the following components (in thousands):

TABLE 8
|  | Q2 |  | Q2 |  | Q1 |  | Q4 |  |  |  | YTD |  | YTD
|  | 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  | 2025 |  | 2024
Commercial Revenue |  | $ | 9,174 |  |  | $ | 10,298 |  |  | $ | 11,618 |  |  | $ | 10,192 |  |  |  |  | $ | 20,792 |  |  | $ | 19,609 |
Commercial Operating Expenses |  | (1,984) |  |  | (1,782) |  |  | (1,716) |  |  | (1,589) |  |  |  |  | (3,700) |  |  | (3,553) |
Commercial NOI |  | $ | 7,190 |  |  | $ | 8,516 |  |  | $ | 9,902 |  |  | $ | 8,603 |  |  |  |  | $ | 17,092 |  |  | $ | 16,056 |

Other Stabilized is composed of completed consolidated communities that the Company owns, which have Stabilized Operations as of January 1, 2025, or which were acquired subsequent to January 1, 2024. Other Stabilized excludes communities that are conducting or are probable to conduct substantial redevelopment activities.
Projected FFO and Projected Core FFO, as provided within this release in the Company’s outlook, are calculated on a basis consistent with historical FFO and Core FFO, and are therefore considered to be appropriate supplemental measures to projected net income from projected operating performance. A reconciliation of the ranges provided for Projected FFO per share (diluted) for the third quarter and full year 2025 to the ranges provided for projected EPS (diluted) and corresponding reconciliation of the ranges for Projected FFO per share to the ranges for Projected Core FFO per share are as follows:

TABLE 9
|  | Low Range |  | High Range
Projected EPS (diluted) - Q3 2025 | $ | 2.41 |  |  | $ | 2.51 |
| Depreciation (real estate related) | 1.59 |  |  | 1.59 |
| Gain on sale of communities | (1.28) |  |  | (1.28) |
Projected FFO per share (diluted) - Q3 2025 | 2.72 |  |  | 2.82 |
| Expensed transaction, development and other pursuit costs, net of recoveries | 0.01 |  |  | 0.01 |
| Legal settlements and costs | 0.02 |  |  | 0.02 |
Projected Core FFO per share (diluted) - Q3 2025 | $ | 2.75 |  |  | $ | 2.85 |
Projected EPS (diluted) - Full Year 2025 | $ | 7.75 |  |  | $ | 8.15 |
| Depreciation (real estate related) | 6.25 |  |  | 6.25 |
| Gain on sale of communities | (2.95) |  |  | (2.95) |
| Casualty loss on real estate | 0.01 |  |  | 0.01 |
Projected FFO per share (diluted) - Full Year 2025 | 11.06 |  |  | 11.46 |
| Unconsolidated entity gains, net | 0.02 |  |  | 0.02 |
| Expensed transaction, development and other pursuit costs, net of recoveries | 0.05 |  |  | 0.05 |
| Legal settlements and costs | 0.08 |  |  | 0.08 |
| Other real estate activity | (0.03) |  |  | (0.03) |
| Other | 0.01 |  |  | 0.01 |
Projected Core FFO per share (diluted) - Full Year 2025 | $ | 11.19 |  |  | $ | 11.59 |

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Projected NOI, as used within this release for certain Development communities and in calculating the Market Cap Rate for dispositions, represents management’s estimate, as of the date of this release (or as of the date of the buyer’s valuation in the case of dispositions), of projected stabilized rental revenue minus projected stabilized operating expenses. For Development communities, Projected NOI is calculated based on the first twelve months of Stabilized Operations following the completion of construction. In calculating the Market Cap Rate, Projected NOI for dispositions is calculated for the first twelve months following the date of the buyer’s valuation. Projected stabilized rental revenue represents management’s estimate of projected gross potential minus projected stabilized economic vacancy and adjusted for projected stabilized concessions plus projected stabilized other rental revenue. Projected stabilized operating expenses do not include interest, income taxes (if any), depreciation or amortization, or any allocation of corporate-level property management overhead or general and administrative costs. In addition, projected stabilized operating expenses for Development communities do not include property management fee expense. Projected gross potential for Development communities and dispositions is generally based on leased rents for occupied homes and management’s best estimate of rental levels for homes which are currently unleased, as well as those homes which will become available for lease during the twelve-month forward period used to develop Projected NOI. The weighted average Projected NOI as a percentage of Total Capital Cost is weighted based on the Company’s share of the Total Capital Cost of each community, based on its percentage ownership.
Management believes that Projected NOI of the Development communities, on an aggregated weighted average basis, assists investors in understanding management's estimate of the likely impact on operations of the Development communities when the assets are complete and achieve stabilized occupancy (before allocation of any corporate-level property management overhead, general and administrative costs or interest expense). However, in this release the Company has not given a projection of NOI on a company-wide basis. Given the different dates and fiscal years for which NOI is projected for these communities, the projected allocation of corporate-level property management overhead, general and administrative costs and interest expense to communities under development is complex, impractical to develop, and may not be meaningful. Projected NOI of these communities is not a projection of the Company's overall financial performance or cash flow. There can be no assurance that the communities under development will achieve the Projected NOI as described in this release.
Redevelopment is composed of consolidated communities where substantial redevelopment is in progress or is probable to begin during the current year. Redevelopment is considered substantial when (i) capital invested during the reconstruction effort is expected to exceed the lesser of $5,000,000 or 10% of the community’s pre-redevelopment basis and (ii) physical occupancy is below or is expected to be below 90% during or as a result of the redevelopment activity.
Residential represents results attributable to the Company's apartment rental operations, including parking and other ancillary Residential revenue.
Residential Revenue with Concessions on a Cash Basis is considered by the Company to be a supplemental measure to Residential revenue in conformity with GAAP to help investors evaluate the impact of both current and historical concessions on GAAP-based Residential revenue and to more readily enable comparisons to revenue as reported by other companies. In addition, Residential Revenue with Concessions on a Cash Basis allows an investor to understand the historical trend in cash concessions.
A reconciliation of Same Store Residential revenue in conformity with GAAP to Residential Revenue with Concessions on a Cash Basis is as follows (dollars in thousands):

TABLE 10
|  | Q2 |  | Q2 |  | Q1 |  | YTD |  | YTD
|  | 2025 |  | 2024 |  | 2025 |  | 2025 |  | 2024
Residential revenue (GAAP basis) |  | $ | 689,100 |  |  | $ | 669,134 |  | $ | 682,115 |  | $ | 1,371,215 |  |  | $ | 1,331,323
Residential concessions amortized |  | 4,818 |  |  | 4,262 |  | 4,516 |  | 9,334 |  |  | 8,671
Residential concessions granted |  | (4,018) |  |  | (2,512) |  | (4,231) |  | (8,249) |  |  | (5,824)
Residential Revenue with Concessions on a Cash Basis |  | $ | 689,900 |  |  | $ | 670,884 |  | $ | 682,400 |  | $ | 1,372,300 |  |  | $ | 1,334,170
|  |  |  | Q2 2025 vs. Q2 2024 |  | Q2 2025 vs. Q1 2025 |  |  |  | YTD 2025 vs. YTD 2024
% change -- GAAP revenue |  |  |  | 3.0 | % |  | 1.0 | % |  |  |  | 3.0 | %
% change -- cash revenue |  |  |  | 2.8 | % |  | 1.1 | % |  |  |  | 2.9 | %

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Same Store is composed of consolidated communities where a comparison of operating results from the prior year to the current year is meaningful as these communities were owned and had Stabilized Operations, as defined below, as of the beginning of the respective prior year period. Therefore, for 2025 operating results, Same Store is composed of consolidated communities that have Stabilized Operations as of January 1, 2024, are not conducting or are not probable to conduct substantial redevelopment activities and are not held for sale or probable for disposition within the current year.
Stabilized Operations is defined as operations of a community that occur after the earlier of (i) attainment of 90% physical occupancy or (ii) the one-year anniversary of completion of development or redevelopment.
Total Capital Cost includes all capitalized costs projected to be or actually incurred to develop the respective Development or Redevelopment community, including land acquisition costs, construction costs, real estate taxes, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees and a contingency estimate, offset by proceeds from the sale of any associated land or improvements, all as determined in accordance with GAAP. Total Capital Cost also includes costs incurred related to first generation commercial tenants, such as tenant improvements and leasing commissions. For Redevelopment communities, Total Capital Cost excludes costs incurred prior to the start of redevelopment when indicated. With respect to communities where development or redevelopment was completed in a prior period or the current period, Total Capital Cost reflects the actual cost incurred, plus any contingency estimate made by management. Total Capital Cost for communities identified as having joint venture ownership, either during construction or upon construction completion, represents the total projected joint venture contribution amount. For joint ventures not in construction, Total Capital Cost is equal to gross real estate cost.
Uncollectible lease revenue
The following table provides uncollectible Residential lease revenue as a percentage of total Residential revenue, including the benefit of any rent relief. Government rent relief reduces the amount of uncollectible Residential lease revenue. The Company expects the amount of rent relief recognized to continue to decline in 2025 absent funding from various government entities.

TABLE 11
|  | Same Store Uncollectible Residential Lease Revenue
|  | Q2 |  | Q2 |  | Q1 |  | Q4
|  | 2025 |  | 2024 |  | 2025 |  | 2024
New England |  | 0.8 | % |  | 0.6 | % |  | 0.9 | % |  | 0.6 | %
Metro NY/NJ |  | 1.7 | % |  | 2.0 | % |  | 1.7 | % |  | 1.8 | %
Mid-Atlantic |  | 1.7 | % |  | 1.9 | % |  | 1.6 | % |  | 1.7 | %
Southeast FL |  | 1.5 | % |  | 1.7 | % |  | 1.7 | % |  | 2.0 | %
Denver, CO |  | 1.0 | % |  | 1.0 | % |  | 1.4 | % |  | 1.3 | %
Pacific NW |  | 0.3 | % |  | 1.4 | % |  | 0.7 | % |  | 0.8 | %
N. California |  | 1.4 | % |  | 1.3 | % |  | 1.2 | % |  | 1.1 | %
S. California |  | 1.5 | % |  | 2.2 | % |  | 2.0 | % |  | 2.2 | %
Other Expansion Regions |  | 2.9 | % |  | 2.4 | % |  | 3.2 | % |  | 3.5 | %
Total Same Store |  | 1.4 | % |  | 1.7 | % |  | 1.5 | % |  | 1.6 | %
Total Same Store – Excluding Rent Relief |  | 1.6 | % |  | 1.8 | % |  | 1.7 | % |  | 1.7 | %

Unconsolidated Development is composed of communities that are either currently under construction, or were under construction and were completed during the current year, in which we have an indirect ownership interest through our investment interest in an unconsolidated joint venture. These communities may be partially or fully complete and operating.
Unencumbered NOI as calculated by the Company represents NOI generated by real estate assets unencumbered by outstanding secured notes payable as of June 30, 2025 as a percentage of total NOI generated by real estate assets. The Company believes that current and prospective unsecured creditors of the Company view Unencumbered NOI as one indication of the borrowing capacity of the Company. Therefore, when reviewed together with the Company’s Interest Coverage, EBITDA and cash flow from operations, the Company believes that investors and creditors view Unencumbered NOI as a useful supplemental measure for determining the financial flexibility of an entity. A calculation of Unencumbered NOI for the six months ended June 30, 2025 is as follows (dollars in thousands):
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13

TABLE 12
|  | YTD 2025
|  | NOI
Residential NOI: |  |
Same Store |  | $ | 948,085 |
Other Stabilized |  | 44,785 |
Development/Redevelopment |  | 6,737 |
Total Residential NOI |  | 999,607 |
Commercial NOI |  | 17,092 |
NOI from real estate assets sold or held for sale |  | 17,797 |
Total NOI generated by real estate assets |  | 1,034,496 |
Less NOI on encumbered assets |  | (49,803) |
NOI on unencumbered assets |  | $ | 984,693 |
Unencumbered NOI |  | 95 | %

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14