Northern California carries Vivmark's property profit growth
The newly merged apartment owner raised its revenue outlook and merger benefits target. But an eleven-region comparison shows how narrowly its third-quarter property earnings grew.
Ticker Byline
Vivmark Residential
Vivmark Residential owns, develops and manages apartment communities. The 2026 merger of AvalonBay and Equity Residential combined their rental portfolios and development operations.
- Ticker
- VMRK
- Exchange
- XNYS
- SEC CIK
- 0000906107
Vivmark Residential owns, develops and manages apartment communities. It is a Maryland real estate investment trust, or REIT, with headquarters in Chicago and Arlington, Virginia. Its shares trade on the New York Stock Exchange as VMRK.
At September 30, 2026, its portfolio included 185,212 apartment homes across 636 communities, including developments and joint ventures. Rent and related property income are its main sources of revenue.
The completed AvalonBay and Equity Residential merger
AvalonBay Communities and Equity Residential completed their all-stock merger on August 17, 2026, creating Vivmark. Each AvalonBay share was exchanged for 2.793 shares of the combined company.
Vivmark continues Equity Residential's legal identity, while its financial statements continue AvalonBay's accounting history. Reported results before August 17 are AvalonBay alone; after that date, they include both businesses.
Comparable apartment results
For property comparisons, Vivmark combines 157,377 stabilized homes as if the two companies had owned them throughout each period. Net operating income, or NOI, is rental income less direct property costs, before interest, depreciation, amortization and central management expenses.
| Measure | Q3 2025 | Q2 2026 | Q3 2026 |
|---|---|---|---|
| Revenue | $1,440.0 | $1,460.3 | $1,473.9 |
| Direct expenses | $480.0 | $474.6 | $497.4 |
| NOI | $960.0 | $985.8 | $976.5 |
| Occupancy | 95.9% | 95.9% | 95.8% |
| Blended lease growth | 1.6% | 3.2% | 3.1% |
Third-quarter revenue grew 2.4% from a year earlier, while expenses grew 3.6% and NOI rose 1.7%. Northern California and New York/New Jersey were the strongest contributors to the increase. Our analysis of regional profit growth examines what the combined figure leaves out.
For the reported group, third-quarter revenue was $1.195 billion and net loss was $747.1 million. Funds from operations, or FFO, was $46.2 million after adjustments including real estate depreciation and property sale gains. Core FFO, which also removes specified merger and other costs, was $608.2 million, or $1.03 per share and unit.
The Core FFO reconciliation excluded $544 million of merger-related costs, including about $80 million of compensation expense.
Merger benefits and development
The company expects its full annual merger benefits to be in place by March 2028. The property tax reassessment cost is already deducted in the net target.
| Component | May 2026 | November 2026 |
|---|---|---|
| Corporate overhead | $50 | $50 |
| Property management | $65 | $65 |
| Property operations | $60 | $70 |
| Gross benefits | $175 | $185 |
| Property tax increase | ($50) | ($50) |
| Net benefits | $125 | $135 |
Total merger-related costs are now expected at about $725 million, including transaction and integration costs, compared with an initial $750 million transaction-only estimate. Management projects $70 million of additional development NOI in 2027.
Development underway had an estimated total cost of $4.42 billion, with about $1.53 billion remaining to invest at September 30.
Cash, debt and available financing
September cash was $111.9 million, with a separate $275.8 million of restricted cash. Debt principal was $17.56 billion; its balance-sheet carrying value was $17.0 billion after discounts and financing costs.
The company had about $4.0 billion of available revolving credit capacity, after allowing for commercial paper and other restrictions. Its two revolving facilities mature in 2030. A $550 million term loan matures in April 2029.
After the quarter, Vivmark repaid $800 million of unsecured notes at maturity. Its September maturity schedule also showed about $872 million of principal due in 2027.
Outlook
In November, management raised its 2026 comparable residential revenue growth midpoint to 2.2%, from 2% in September. The current range is 2% to 2.4%. It expects expense growth of 4.1% to 4.7% and NOI growth of 0.8% to 1.4%.
Fourth-quarter Core FFO is expected at $1.01 to $1.05 per share and unit. The next annual results will test the operating ranges and show whether growth has spread more widely across the portfolio.
Latest reporting