AvalonBay Communities (AVB) Q4 2025 earnings summary

Executive summary

• Achieved 2.1% overall revenue growth in 2025, with record-low turnover, high resident retention, and Core FFO per share up 2.1% year-over-year.

• Same store residential revenue increased 2.5% for 2025; quarterly dividend raised 1.7% to $1.78 per share.

• Initiated $1.65B in new development projects at a 6.2% yield and completed $1.65B in development, with $590M in 2025 starts.

• Raised $2.5B in capital in 2025, including $900M in equity and $488M in share repurchases at $182 per share.

• Entered 2026 with a strong balance sheet and a portfolio concentrated in supply-constrained suburban coastal markets.

Financial highlights

• 2025 turnover rate was 41%, the lowest in company history; Net promoter score reached 34.

• Same Store Residential revenue rose 2.5% to $2.71B in 2025; NOI increased 1.9% to $1.86B, with operating expenses up 3.8%.

• Quarterly dividend increased to $1.78 per share, a 1.7% rise.

• 2025 share repurchases totaled $488M at an average price of $182 per share.

• Net income attributable to common stockholders for 2025 was $1.05B, down 2.8% year-over-year.

Outlook and guidance

• 2026 Core FFO per share guidance: $11.00–$11.50 (midpoint $11.25), essentially flat to 2025.

• 2026 same store revenue growth projected at 1.4%, with operating expense growth at 3.8% and NOI growth at 0.3%.

• Development starts for 2026 limited to $800M, targeting 6.5%-7% yields; $47M in projected 2026 development NOI.

• 2026 EPS guidance: $6.33–$6.83 (midpoint $6.58), down 11% from 2025 due to lower projected gains on asset sales.

• Fundamentals expected to improve as 2026 progresses, with historically low new supply in established regions.