AvalonBay Communities reported first-quarter 2026 diluted earnings per share of $2.33, up from $1.66 a year earlier, a gain of 40.4%.
Funds from operations per share fell to $2.72 from $2.78 in the prior-year quarter, while core FFO per share was unchanged at $2.83.
Same-store residential revenue rose 1.6% to $703.976 million from $692.923 million, driven by an $11.053 million increase. Same-store residential operating expenses increased 4.7% to $224.039 million from $214.073 million. That left same-store residential NOI up just 0.2% to $479.937 million from $478.850 million.
The company completed one development in the quarter: Avalon Lake Norman in Mooresville, North Carolina, a 345-home community built for a total capital cost of $102 million. It also started construction on two New Jersey projects, Avalon Saddle River and Avalon Somerville Station II, which together are expected to total 446 apartment homes and $188 million of capital cost.
At quarter-end, AvalonBay had 25 wholly owned development communities under construction, representing 8,673 apartment homes and 69,000 square feet of commercial space, with an estimated total capital cost of $3.39 billion.
During the quarter, the company sold three communities — Avalon Sunset Towers in San Francisco, Avalon White Plains in New York, and Avalon the Albemarle in Washington, D.C. — for $340.75 million. The sales generated a GAAP gain of $179.688 million and an economic gain of $35.836 million.
AvalonBay also received full repayment of a $17.58 million mezzanine loan and, in April, entered into a new mezzanine loan commitment of up to $15 million, both tied to multifamily development projects in the New York/New Jersey metro area.
Cash and cash equivalents totaled $121.231 million at March 31. The company had no borrowings outstanding under its credit facility and had $769.722 million outstanding under its unsecured commercial paper program.
AvalonBay repurchased 1,130,336 shares in the quarter at an average price of $175.59, spending $198.48 million. It ended the period with $914.354 million of remaining capacity under its 2026 stock repurchase program.
For the second quarter, AvalonBay guided to diluted EPS 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 midpoint of that EPS range, $1.28, is sharply below the first quarter’s $2.33, reflecting the absence of the large gains on real estate sales booked in the first quarter. As a result of these announcements, the company's shares have moved -0.56% on the market, and are now trading at a price of $172.38. If you want to know more, read the company's complete 8-K report here.
