AvalonBay reported Q4 2025 Core Funds From Operations (FFO) of $2.85 per share, topping the consensus estimate of $2.84. Core FFO rose 1.8% year-over-year, driven by a $5.8 million, or 1.3%, increase in same-store net operating income (NOI). GAAP EPS declined 40.9% to $1.17 due to lower real estate gains and higher depreciation expense, but FFO per share still advanced 6.5% from $2.63 in Q4 2024. Occupancy improved sequentially, bolstering rental revenue and supporting the dividend increase announced concurrently.

Same-store residential revenue grew by $11.8 million, or 1.8%, to $680.5 million, while operating expenses increased $6.0 million, or 2.9%, resulting in NOI of $467.1 million. On an annual basis, same-store revenue rose $66.1 million (2.5%) and NOI increased $34.6 million (1.9%). Same-store occupancy ticked higher versus the prior quarter, underpinning rent growth trends in key markets such as Boston, Northern Virginia and Austin.

During Q4, AvalonBay completed two wholly-owned communities—Avalon Hunt Valley West (MD) and Avalon South Miami (FL)—totaling 612 homes and 32,000 sq. ft. of commercial space at a cost of $287 million. Five additional projects broke ground, adding capacity for 1,378 homes at an estimated cost of $592 million, including a 100-unit expansion at Avalon Tech Ridge I. In 2025 the company acquired 12 communities (3,378 homes) for $842 million and bought out its JV partner’s 50% stake in a 328-unit community for $71.3 million.

AvalonBay ended the quarter with $187.2 million in unrestricted cash and issued $400 million of unsecured notes at a 4.35% coupon, effectively 4.52% after costs, while repaying $300 million of maturing debt. The company raised its quarterly dividend by 1.7%, reflecting confidence in cash flow stability and its upgraded unsecured credit facility capacity of $2.5 billion. Leverage remains within target ranges, supported by a backstopped $1.0 billion commercial paper program.