We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AVB delivered Q4 2025 core FFO of $2.85, topping estimates, as same-store NOI rose 1.3% year over year.
AVB's same-store occupancy improved to 95.8%, while interest expense jumped 17.2% to $69.1M.
AVB raised its quarterly dividend 1.7% to $1.78 per share alongside its fourth-quarter earnings release.
AvalonBay Communities (AVB - Free Report) reported fourth-quarter 2025 core funds from operations (FFO) per share of $2.85, surpassing the Zacks Consensus Estimate of $2.84. The figure increased 1.8% from the prior-year quarter’s tally of $2.80.
Results reflect higher same-store net operating income (NOI) and occupancy growth year over year. Higher interest expenses undermined the performance to an extent. AVB hiked its dividend per share.
Total revenues in the quarter came in at $767.9 million, missing the Zacks Consensus Estimate of $768.3 million marginally. The figure increased 3.7% on a year-over-year basis.
For full-year 2025, the core FFO per share came in at $11.24, up 2.1% year over year. The figure was in line with the Zacks Consensus Estimate. Total revenues for full-year 2025 came in at $3.04 billion, an improvement of 4.4% year over year.
AVB’s Q4 in Detail
In the reported quarter, same-store residential revenues increased 1.8% year over year to $680.5 million. Same-store residential operating expenses rose 2.9% to $213.4 million. As a result, the same-store residential NOI climbed 1.3% to $467.1 million.
Same-store average revenue per occupied home jumped to $3,079 in the fourth quarter, up 1.7% from $3,028 in the year-ago period. Same-store economic occupancy of 95.8% improved 10 basis points year over year. The figure was in line with our estimate of 95.8%.
Interest expenses increased 17.2% year over year to $69.1 million. It also exceeded our estimate of $59.6 million.
AVB’s Portfolio Activity
During the fourth quarter, the company acquired Avalon Townhome Collection Brier Creek in Durham, NC, comprising 93 rental townhomes for a purchase price of $36.5 million.
In January 2026, AvalonBay disposed of Avalon Sunset Towers in San Francisco, CA, comprising 243 apartment homes for $105 million.
During the fourth quarter, the company completed the development of two wholly owned communities with 612 apartment units and 32,000 square feet of commercial space. The total construction cost was $287 million. The REIT started construction of five apartment communities and the expansion of Avalon Tech Ridge 1 in Austin, TX. These will comprise a total of 1,378 apartment units, with an estimated total capital cost of $592 million.
As of Dec. 31, 2025, AvalonBay had 24 wholly owned Development communities under construction (expected to contain 8,572 apartment homes and 69,000 square feet of commercial space). The estimated total capital cost of these development communities at completion is $3.31 billion.
AVB’s Balance Sheet Position
AVB had $187.2 million in unrestricted cash and cash equivalents as of Dec. 31, 2025. As of the same date, the company did not have any borrowings outstanding under its credit facility. It had outstanding borrowings of nearly $739.6 million under its unsecured commercial paper program.
Its annualized net debt-to-core EBITDAre for the October-December period was 4.7 times, and the unencumbered NOI for the year ended Dec. 31, 2025 was 95%.
2026 Guidance by AVB
For the full year, AVB expects core FFO per share between $11.00 and $11.50, rising 0.1% at the midpoint from the 2025 reported number. The Zacks Consensus Estimate presently stands at $11.58, above the projected range.
Management expects same-store residential revenue growth of 0.4%-2.4% and an operating expense increase of 2.7%-4.9%. Same-store residential NOI is projected between negative 0.7% and 1.3%.
AVB’s Dividend Raise
Concurrent with its fourth-quarter earnings release, AvalonBay declared its first-quarter 2026 dividend of $1.78 per share, an increase of 1.7% over the prior quarter’s dividend payment. The new dividend will be paid out on April 15 to shareholders on record as of March 31, 2026.
AvalonBay currently carries a Zacks Rank #4 (Sell).
Mid-America Apartment Communities (MAA - Free Report) reported fourth-quarter 2025 FFO per share of $2.23, which surpassed the Zacks Consensus Estimate of $2.22. The figure remained unchanged from the prior year period.
Results reflected higher occupancy and same-store effective blended lease rate growth year over year. The same-store portfolio’s NOI and average effective rent per unit fell, undermining the performance.
Essex Property Trust Inc. (ESS - Free Report) reported fourth-quarter 2025 core FFO per share of $3.98, missing the Zacks Consensus Estimate of $4. This compares favorably to the FFO of $3.92 per share a year ago.
Results reflected favorable growth in same-property NOI and higher occupancy. Higher interest expenses partly acted as a dampener.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AvalonBay Q4 FFO Tops Estimates, Revenues Grow Y/Y, Dividend Raised
Key Takeaways
AvalonBay Communities (AVB - Free Report) reported fourth-quarter 2025 core funds from operations (FFO) per share of $2.85, surpassing the Zacks Consensus Estimate of $2.84. The figure increased 1.8% from the prior-year quarter’s tally of $2.80.
Results reflect higher same-store net operating income (NOI) and occupancy growth year over year. Higher interest expenses undermined the performance to an extent. AVB hiked its dividend per share.
Total revenues in the quarter came in at $767.9 million, missing the Zacks Consensus Estimate of $768.3 million marginally. The figure increased 3.7% on a year-over-year basis.
For full-year 2025, the core FFO per share came in at $11.24, up 2.1% year over year. The figure was in line with the Zacks Consensus Estimate. Total revenues for full-year 2025 came in at $3.04 billion, an improvement of 4.4% year over year.
AVB’s Q4 in Detail
In the reported quarter, same-store residential revenues increased 1.8% year over year to $680.5 million. Same-store residential operating expenses rose 2.9% to $213.4 million. As a result, the same-store residential NOI climbed 1.3% to $467.1 million.
Same-store average revenue per occupied home jumped to $3,079 in the fourth quarter, up 1.7% from $3,028 in the year-ago period. Same-store economic occupancy of 95.8% improved 10 basis points year over year. The figure was in line with our estimate of 95.8%.
Interest expenses increased 17.2% year over year to $69.1 million. It also exceeded our estimate of $59.6 million.
AVB’s Portfolio Activity
During the fourth quarter, the company acquired Avalon Townhome Collection Brier Creek in Durham, NC, comprising 93 rental townhomes for a purchase price of $36.5 million.
In January 2026, AvalonBay disposed of Avalon Sunset Towers in San Francisco, CA, comprising 243 apartment homes for $105 million.
During the fourth quarter, the company completed the development of two wholly owned communities with 612 apartment units and 32,000 square feet of commercial space. The total construction cost was $287 million. The REIT started construction of five apartment communities and the expansion of Avalon Tech Ridge 1 in Austin, TX. These will comprise a total of 1,378 apartment units, with an estimated total capital cost of $592 million.
As of Dec. 31, 2025, AvalonBay had 24 wholly owned Development communities under construction (expected to contain 8,572 apartment homes and 69,000 square feet of commercial space). The estimated total capital cost of these development communities at completion is $3.31 billion.
AVB’s Balance Sheet Position
AVB had $187.2 million in unrestricted cash and cash equivalents as of Dec. 31, 2025. As of the same date, the company did not have any borrowings outstanding under its credit facility. It had outstanding borrowings of nearly $739.6 million under its unsecured commercial paper program.
Its annualized net debt-to-core EBITDAre for the October-December period was 4.7 times, and the unencumbered NOI for the year ended Dec. 31, 2025 was 95%.
2026 Guidance by AVB
For the full year, AVB expects core FFO per share between $11.00 and $11.50, rising 0.1% at the midpoint from the 2025 reported number. The Zacks Consensus Estimate presently stands at $11.58, above the projected range.
Management expects same-store residential revenue growth of 0.4%-2.4% and an operating expense increase of 2.7%-4.9%. Same-store residential NOI is projected between negative 0.7% and 1.3%.
AVB’s Dividend Raise
Concurrent with its fourth-quarter earnings release, AvalonBay declared its first-quarter 2026 dividend of $1.78 per share, an increase of 1.7% over the prior quarter’s dividend payment. The new dividend will be paid out on April 15 to shareholders on record as of March 31, 2026.
AvalonBay currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AvalonBay Communities, Inc. Price, Consensus and EPS Surprise
AvalonBay Communities, Inc. price-consensus-eps-surprise-chart | AvalonBay Communities, Inc. Quote
Performance of Other Residential REITs
Mid-America Apartment Communities (MAA - Free Report) reported fourth-quarter 2025 FFO per share of $2.23, which surpassed the Zacks Consensus Estimate of $2.22. The figure remained unchanged from the prior year period.
Results reflected higher occupancy and same-store effective blended lease rate growth year over year. The same-store portfolio’s NOI and average effective rent per unit fell, undermining the performance.
Essex Property Trust Inc. (ESS - Free Report) reported fourth-quarter 2025 core FFO per share of $3.98, missing the Zacks Consensus Estimate of $4. This compares favorably to the FFO of $3.92 per share a year ago.
Results reflected favorable growth in same-property NOI and higher occupancy. Higher interest expenses partly acted as a dampener.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.