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 a mid-lease Net Promoter Score of 34.

• Core FFO per share grew 2.1% for 2025, with Q4 Core FFO per share of $2.85 and full year $11.24.

• $1.65B in new development projects initiated and $1.65B in completions, with $590M in starts for 2025.

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

• Quarterly dividend increased 1.7% to $1.78 per share, reflecting confidence in earnings growth.

Financial highlights

• 2025 revenue grew 2.1% year-over-year, with Same Store Residential revenue up 2.5% to $2.71B and NOI up 1.9% to $1.86B.

• Share repurchases totaled $490M at an average price of $182 per share, with an implied yield above 6%.

• Full year 2025 total revenue increased 4.4% to $3.03B; total community operating expenses up 6.9%.

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

• Q4 2025 Net Debt-to-Core EBITDAre was 4.7x; interest coverage 6.7x; Unencumbered NOI 95%.

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 NOI change between -0.7% and 1.3%.

• 2026 development starts reduced to $800M, targeting 6.5%-7% yields, with $47M projected development NOI.

• Guidance assumes modest job growth, low new supply in established regions, and $1.52B capital allocated for investment activities.

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