AvalonBay Communities reported core funds from operations (FFO) of $2.85 per share for the fourth quarter of 2025, outpacing consensus estimates of $2.84. This represents a 1.8% increase in core FFO versus $2.80 in Q4 2024 and a 6.5% year-over-year rise in standard FFO to $2.80 per share. Net income per diluted share was $1.17, down from $1.98 a year earlier due to non-core real estate gains and depreciation charges, while same-store net operating income (NOI) grew by $5.8 million, or 1.3%, to $467.1 million on residential revenue up $11.8 million, or 1.8%.

During Q4 2025, same-store residential revenue increased to $680.5 million, with operating expenses of $213.4 million reflecting a 2.9% rise. Occupancy held steady above 96%, driving NOI margin expansion. For the full year, same-store revenue climbed 2.5% to $2.712 billion and NOI rose 1.9% to $1.860 billion, supported by disciplined expense control and modest rent growth across the company’s 280 communities and 89,000 apartment homes.

In the quarter, AvalonBay completed two wholly-owned developments—612 apartments and 32,000 square feet of commercial space—in Hunt Valley, MD, and South Miami, FL, at a cost of $287 million. Five new communities broke ground, adding an expected 1,378 homes at a total capital cost of $592 million, including a $33 million expansion of Avalon Tech Ridge I in Austin. The company also acquired a 93-unit townhome project in Durham, NC for $36.5 million and closed on 12 communities totaling 3,378 units for $842 million during 2025, enhancing its presence in high-growth markets.

As of December 31, 2025, AvalonBay held $187.2 million in unrestricted cash. The company issued $400 million of unsecured notes due 2030 at a 4.35% coupon (effective 4.52% after costs) and retired $300 million of 3.50% notes at par. Over the year, it borrowed $1.35 billion at an average rate of 4.64% and repaid $825 million of debt at 3.47%. The credit facility was expanded to $2.5 billion with maturity extended to April 2030, and the commercial paper program capacity was raised to $1 billion. No balances were outstanding under the credit facility at year-end, with $739.6 million drawn on the commercial paper program.