AvalonBay reported Q4 2025 Core FFO of $2.85 per share, topping consensus estimates by $0.01 and marking a 1.8% year-over-year increase. GAAP EPS declined to $1.17 from $1.98 a year ago due primarily to a $0.98 per share non-cash charge for real estate gains and depreciation, while FFO per share rose 6.5% to $2.80. Full-year 2025 Core FFO reached $11.24 per share, a 2.1% improvement over 2024, and FFO per share climbed 3.8% to $11.40. Same-store residential NOI grew 1.3% in Q4 to $467.1 million and 1.9% for the year to $1.860 billion, driven by $11.8 million in incremental revenue in the quarter and $66.1 million for the year.

Occupancy across AvalonBay’s stabilized portfolio improved sequentially, ending Q4 at 96.2%, up 60 basis points from Q3. Average effective rent per apartment home rose 2.3% year-over-year, while turnover costs remained stable at 15.4% of revenue. Development and other NOI contributed $5.0 million to Q4 results, reflecting completed openings at Avalon Hunt Valley West (312 homes) and Avalon South Miami (300 homes).

During Q4, AvalonBay completed two wholly-owned communities totaling 612 apartment homes and 32,000 square feet of commercial space for $287 million of total capital cost. It commenced five new projects expected to add 766 homes at an estimated $305 million cost, including a $33 million expansion of Avalon Tech Ridge I in Austin. In full-year 2025, the company delivered four communities (1,320 homes, $561 million cost), broke ground on 11 more plus expansions (3,888 homes, $1.636 billion cost), and held 24 communities under construction (8,572 homes, $3.307 billion cost). Dispositions included nine properties sold for $811.68 million, generating a GAAP gain of $336.65 million and an economic gain of $104.99 million, plus the January 2026 sale of Avalon Sunset Towers for $105 million.

At year-end, AvalonBay held $187.2 million in unrestricted cash. In Q4, the company issued $400 million of unsecured notes due 2030 with a 4.35% coupon (effective rate 4.52%) and repaid $300 million of 3.50% notes at maturity. Full-year debt issuances totaled $1.35 billion at a 4.64% average rate, with $825 million of maturities repaid at 3.47%. The unsecured credit facility was amended to $2.5 billion maturing in April 2030, and the commercial paper program capacity was raised to $1 billion, backed by credit facility commitments.