AvalonBay Communities Reports $340.75M in Multifamily Real Estate Dispositions, Steady Core FFO in Q1 2026

ARLINGTON, Va. — AvalonBay Communities, Inc. (NYSE: AVB) reported first-quarter 2026 financial results on April 27, 2026, disclosing $340,750,000 in multifamily real estate dispositions, flat Core Funds from Operations (Core FFO) per share of $2.83, and the launch of a new $1 billion stock repurchase program as the company continues to actively manage its real estate development pipeline.

Multifamily Dispositions Total $340.75 Million Across Three Markets

During the three months ended March 31, 2026, AvalonBay Communities completed the sale of three wholly-owned multifamily communities totaling 884 apartment homes. The properties sold were Avalon Sunset Towers in San Francisco, California; Avalon White Plains in White Plains, New York; and Avalon The Albemarle in Washington, D.C. The aggregate sale price of $340,750,000 generated a GAAP gain of $179,688,000 and an Economic Gain of $35,836,000.

The transactions contributed to a 40.4% year-over-year increase in earnings per share — diluted (EPS), which rose to $2.33 from $1.66 in Q1 2025, primarily reflecting the real estate gains recorded on the sales.

Core FFO Holds Steady; Same-Store NOI Growth Modest

Core FFO per share for the first quarter of 2026 was $2.83, unchanged from the same period in 2025. FFO per share declined 2.2% to $2.72 from $2.78 in Q1 2025. The company's Core FFO result exceeded the midpoint of its February 2026 outlook of $2.78 per share by $0.05, with approximately 80% of the favorable variance attributed to lower-than-anticipated operating expenses.

Same Store Residential revenue increased 1.6% year-over-year to $703,976,000, while Same Store Residential operating expenses rose 4.7% to $224,039,000. Same Store Residential net operating income (NOI) grew 0.2% to $479,937,000. The company noted that lower-than-expected operating expenses in Q1 are anticipated to be incurred throughout the remainder of 2026.

Real Estate Development Activity: New Starts and Pipeline

AvalonBay Communities completed the development of Avalon Lake Norman in Mooresville, North Carolina during the quarter. The community contains 345 apartment homes and was constructed for a Total Capital Cost of $102,000,000. Avalon Lake Norman was developed through the company's Developer Funding Program (DFP).

The company also started construction on two new multifamily communities in New Jersey: Avalon Saddle River in Saddle River, NJ, and Avalon Somerville Station II in Somerville, NJ. Together, these communities are expected to contain 446 apartment homes at an estimated Total Capital Cost of $188,000,000.

As of March 31, 2026, AvalonBay had 25 wholly-owned development communities under construction, expected to contain 8,673 apartment homes and 69,000 square feet of commercial space, with an estimated Total Capital Cost of $3,390,000,000.

Capital Markets and Liquidity

At March 31, 2026, AvalonBay reported $121,231,000 in unrestricted cash and cash equivalents. The company had no borrowings outstanding under its Credit Facility and carried $769,722,000 in outstanding borrowings under its unsecured commercial paper program. The company's annualized Net Debt-to-Core EBITDAre for the first quarter of 2026 was 4.8 times, and Unencumbered NOI for the period was 95%.

In February 2026, AvalonBay terminated its $500,000,000 stock repurchase program (the "2025 Stock Repurchase Program") and adopted a new program authorizing the repurchase of shares up to an aggregate purchase price of $1,000,000,000 (the "2026 Stock Repurchase Program"). The 2026 Stock Repurchase Program does not have an expiration date and may be suspended or terminated at any time without prior notice.

During Q1 2026, AvalonBay repurchased 1,130,336 shares of common stock at an average price of $175.59 per share, including fees, for a total of $198,480,000 under both the 2025 and 2026 Stock Repurchase Programs. As of the date of the earnings release, the company had $914,354,000 remaining capacity under the 2026 Stock Repurchase Program. There were no repurchases subsequent to March 31, 2026.

Structured Investment Program and Mezzanine Lending Activity

Through its Structured Investment Program (SIP), AvalonBay received full repayment of $17,580,000 for one mezzanine loan during Q1 2026, including principal and contractual accrued interest. In April 2026, the company entered into a new mezzanine loan commitment of up to $15,000,000. Both transactions were associated with multifamily development projects in the Metro New York/New Jersey area.

Q2 2026 Guidance and Full-Year Outlook

For the second quarter of 2026, AvalonBay projected EPS in the range of $1.23 to $1.33, FFO per share of $2.68 to $2.78, and Core FFO per share of $2.72 to $2.82. The lower projected EPS relative to Q1 2026 primarily reflects the absence of the large real estate gains recorded in the first quarter.

The company reaffirmed its February 2026 full-year outlook for FFO and Core FFO. It updated its full-year EPS guidance to a range of $5.92 to $6.42, primarily reflecting revisions to projected gain on sale due to changes in the composition of planned dispositions.

As of March 31, 2026, AvalonBay owned or held a direct or indirect ownership interest in 319 apartment communities containing 98,271 apartment homes in 11 states and the District of Columbia, of which 25 communities were under development and one was under redevelopment. The company operates in markets including Boston, Massachusetts; the New York/New Jersey Metro area; the Mid-Atlantic; Seattle, Washington; Northern and Southern California; and expansion regions including Raleigh-Durham and Charlotte, North Carolina; Southeast Florida; Dallas and Austin, Texas; and Denver, Colorado.

AvalonBay held a conference call on April 28, 2026, to discuss the results. Investor relations inquiries may be directed to Matthew Grover, Senior Director of Investor Relations, at 703-317-4524.