AVALONBAY COMMUNITIES INC recently released its 10-K report, revealing a decrease in net income attributable to common stockholders for the year ended December 31, 2025, amounting to $1,051,301,000, a 2.8% decrease from the previous year. The decrease was primarily due to an increase in depreciation expense from newly acquired or developed communities, a decrease in gains from real estate sales, and increased interest expense, net over the prior year. However, the company saw an increase in Net Operating Income (NOI) from communities over the prior year.
During 2025, AVALONBAY raised approximately $2,253,402,000 of gross capital through the sale of wholly-owned real estate, the issuance of unsecured notes, the settlement of outstanding equity forward contracts, and borrowings under a variable rate term loan. The company also engaged in various portfolio management activities, including the sale of nine wholly-owned communities, the construction of four wholly-owned communities, and the acquisition of 12 wholly-owned communities.
As of December 31, 2025, AVALONBAY owned or held a direct or indirect ownership interest in 320 communities containing 98,694 apartment homes in 11 states and the District of Columbia, with 24 communities under construction. The company also had an indirect interest in eight communities owned by entities not consolidated for financial reporting purposes. Additionally, AVALONBAY held a direct or indirect ownership interest in development rights for an additional 32 apartment communities, expected to contain an estimated 9,032 apartment homes.
The company's financial performance is evaluated based on various categories, including Same Store communities, Other Stabilized communities, Redevelopment communities, and Unconsolidated communities. AVALONBAY's overall financial performance is impacted by national and local market conditions, reflected in changes in Same Store NOI, NOI derived from acquisitions, development completions, and development under construction and in lease-up, loss of NOI related to disposed communities, and capital market and financing activity.
In 2025, AVALONBAY's revenue from rental and other income increased by 4.4% compared to the prior year, primarily due to an increase in rental revenue from stabilized operating communities. The weighted average number of occupied apartment homes for consolidated communities also increased, contributing to the growth in rental and other income. Additionally, the company's Same Store Residential NOI increased by 1.9% in 2025, driven by an increase in Residential revenue, partially offset by an increase in Residential property operating expenses.
AVALONBAY's financial report also highlighted the impact of inflation on its operating results, indicating that inflation can adversely affect operating costs, cost of capital, and construction and development costs. However, this risk may be mitigated by increases in residential lease rents.
Following these announcements, the company's shares moved 0.9%, and are now trading at a price of $182.42. For the full picture, make sure to review AVALONBAY COMMUNITIES INC's 10-K report.
