Vivmark Residential, the nation's largest publicly traded apartment owner formed by the mid-August merger of AvalonBay Communities and Equity Residential, reported its first quarterly earnings on Thursday. The REIT operates more than 184,000 apartments across high-priced markets including San Francisco, Washington D.C., Boston, and New York.
For the third quarter, Vivmark reported $1.19 billion in revenue and net operating income of $800.76 million, despite a $747 million loss. Funds from operations was 8 cents a share, with core FFO at $1.03 a share. The quarter covered Vivmark's performance following the mid-August merger close plus AvalonBay's standalone results for the prior two-plus weeks.
Merger integration costs came in at $725 million, running $25 million below the initial estimate. "Our primary focus right now is on execution — execution of the underlying business and execution of our integration," said Benjamin Schall, CEO and president.
Vivmark reported a 95.8 percent occupancy rate and turnover of 12.7 percent. The company noted rents rose, supported partly by the $1,900 monthly savings of renting versus buying in its operating regions. Vivmark has a $4.4 billion development pipeline and estimates new multifamily deliveries in its markets will reach about 1.2 percent of existing stock in 2027.
The REIT completed two wholly owned projects totaling 761 apartments during the quarter and has one underway with 281 apartments.