AvalonBay Communities (AVB) Q1 2026 earnings summary

Executive summary

• Q1 2026 results exceeded expectations, with Core FFO per share at $2.83, driven by lower expenses, higher development NOI, and share repurchases; net income attributable to common stockholders rose 37.7% year-over-year to $325.7M, supported by gains from real estate sales and increased NOI.

• Portfolio is well-positioned for peak leasing season, with low turnover, solid occupancy, and rents tracking as expected.

• Strong demand at lease-up communities, with development NOI expected to accelerate through 2026 and into 2027.

• Completed $340.8M of dispositions and repurchased $198.5M of shares in Q1 2026.

• Completed development of Avalon Lake Norman (345 homes, $102M cost) and started two new projects in NJ totaling 446 homes and $188M.

Financial highlights

• Same-store residential revenue grew 1.6% year-over-year, with occupancy at 96.1%.

• Core FFO per share reached $2.83, surpassing the outlook midpoint; FFO per share was $2.72.

• Total revenue for Q1 2026 was $770.3M, up 3.3% year-over-year.

• Dividends declared per share rose 1.7% to $1.78.

• Rental and other income rose by $24.3M, or 3.3%, year-over-year.

Outlook and guidance

• Full-year 2026 FFO and Core FFO outlook reaffirmed; Q2 2026 Core FFO per share projected at $2.78–$2.82.

• Rent change expected to average 2% for 2026, with renewals projected at 3.5% and move-ins at 0%.

• Development NOI expected to accelerate into 2027, targeting $80M incremental NOI.

• 25 wholly-owned communities under construction, expected to add 8,673 apartment homes at a total cost of $3.39B.

• Management expects to meet liquidity needs through a mix of operating cash, asset sales, credit facility, and capital markets activity.