AvalonBay Communities (NYSE:AVB) Q4 2025 Earnings call February 05, 2026 01:00 PM ET Company ParticipantsAlex Kalmus - Equity Research Senior AssociateAnthony Paolone - Executive DirectorBen Schall - CEO and PresidentJamie Feldman - Managing Director and Head of REIT ResearchJohn Pawlowski - Managing DirectorKevin O’Shea - CFOMatthew Birenbaum - CIOMatthew Grover - Senior Director of Investor RelationsNick Yulico - Managing DirectorOmotayo Okusanya - Managing DirectorRich Hightower - Managing DirectorSean B ...

AvalonBay Communities (NYSE:AVB) Q4 2025 Earnings call February 05, 2026 01:00 PM ET Company ParticipantsAlex Kalmus - Equity Research Senior AssociateAnthony Paolone - Executive DirectorBen Schall - CEO and PresidentJamie Feldman - Managing Director and Head of REIT ResearchJohn Pawlowski - Managing DirectorKevin O’Shea - CFOMatthew Birenbaum - CIOMatthew Grover - Senior Director of Investor RelationsNick Yulico - Managing DirectorOmotayo Okusanya - Managing DirectorRich Hightower - Managing DirectorSean B ...

Financial Data and Key Metrics Changes - AvalonBay Communities reported a revenue growth of 2.1% for 2025, with a turnover rate of 41%, the lowest in the company's history [4][5] - The company raised $2.4 billion of capital at an initial cost of 5% during 2025, positioning itself for continued investment in 2026 [6][7] - The quarterly dividend was increased to $1.78 per share, reflecting a conservative payout ratio in the industry [9] Business Line Data and Key Metrics Changes - The company expects modest revenue growth of 1.4% for 2026, driven primarily by an increase in lease rates and a better mix of jobs [8][13] - Development earnings are projected to increase significantly as projects lease up during 2026, despite funding costs from previous developments [9][25] - The company started $1.65 billion in projects in 2025 with a projected initial stabilized yield of 6.2% [5][27] Market Data and Key Metrics Changes - Revenue growth in New York and New Jersey is expected to be around 2%, driven by contributions from New York City and Westchester [14] - The Mid-Atlantic region is projected to see just under 1% revenue growth due to job losses in the back half of 2025 [16] - Northern California is expected to produce mid-3% revenue growth, supported by stable occupancy and lease rate growth [18] Company Strategy and Development Direction - AvalonBay aims to utilize its scale and investments in technology to drive incremental growth from its existing portfolio [8] - The company is focusing on a conservative approach to new starts, limiting activity to $800 million in 2026, with a strong spread to underlying cap rates [9][25] - The company is well-positioned with a high-quality portfolio and one of the strongest balance sheets in the REIT sector, despite expecting modest growth in 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management anticipates a job growth environment slightly stronger than 2025, with 750,000 net new jobs forecasted for 2026 [10] - Demand for apartments is expected to be supported by favorable rent-to-income ratios and the relative attractiveness of renting versus homeownership [11] - The supply outlook indicates only 80 basis points of stock this year in established regions, which is expected to serve as a tailwind for the company [11] Other Important Information - The company expects same-store operating expense growth of 3.8% in 2026, driven by the phase-out of property tax abatement programs and other factors [20] - Legislative actions in Colorado and California are impacting the ability to charge certain fees, which is expected to drag on other rental revenue [80] Q&A Session Summary Question: Renewal rates and expectations - Management indicated that renewal offers for February and March were in the 4%-4.5% range, but actual settlements are expected to be lower, typically around 100-125 basis points of dilution [32][33] Question: Guidance lessons from 2025 - The company emphasized a detailed process for setting guidance, considering both upside and downside scenarios, with confidence in development earnings being more concrete [44][46] Question: Development starts and market conditions - Management noted that the reduction in development starts was due to both a lack of suitable deals and a conscious decision to be cautious in a choppy environment [50][53] Question: Impact of legislative activity on revenue - Management highlighted that new legislation in Colorado and California is affecting revenue, with ongoing monitoring of potential political initiatives [80][81]

INVESTOR TELECONFERENCE PRESENTATION FOURTH QUARTER 2025 FEBRUARY 5, 2026 Avalon Ocean Avenue San Francisco, CA [FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, For the reasons described in the referenced forward-looking statements, our historical results may not be indicative of future results. Avalon Belltown Towers Seattle, WA [FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERF ...

Key Takeaways 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) 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 prio ...

Exhibit 99.2 For Immediate News Release February 4, 2026 AVALONBAY COMMUNITIES, INC. ANNOUNCES 2025 OPERATING RESULTS, 1.7% DIVIDEND INCREASE AND INITIAL 2026 OUTLOOK (Arlington, VA) AvalonBay Communities, Inc. (NYSE: AVB) (the "Company") reported Earnings per Share – diluted ("EPS"), Funds from Operations attributable to common stockholders - diluted ("FFO") per share and Core FFO per share (as defined in this release) for the three months and year ended December 31, 2025 and 2024 as detailed below. | | | ...

AvalonBay Communities (AVB) came out with quarterly funds from operations (FFO) of $2.85 per share, beating the Zacks Consensus Estimate of $2.84 per share. This compares to FFO of $2.8 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of +0.23%. A quarter ago, it was expected that this apartment building owner would post FFO of $2.81 per share when it actually produced FFO of $2.75, delivering a surprise of -2.14%.Over the last four qu ...

Key Takeaways AVB is expected to report moderated Q4 results after cutting 2025 revenue, NOI and core FFO guidance.ESS is likely to post modest revenue growth, with West Coast demand offset by pockets of supply pressure.MAA is expected to see rent pressure from elevated Sun Belt supply and higher concessions.We are in the middle of the current reporting cycle, and the real estate investment trust (REIT) space is buzzing with activity, with several earnings releases lined up for this week. Among the resident ...

Key Takeaways AvalonBay Communities is set to report Q4 and full-year 2025 results on Feb. 4, after market close.AVB cut 2025 core FFO growth outlook to 2.2% as rent growth slowed and expenses rose.Consensus sees Q4 revenues up 3.75% year over year, while core FFO estimates were revised lower.AvalonBay Communities, Inc. (AVB) , a leading real estate investment trust (REIT) specializing in the development, acquisition and management of multifamily properties, is set to announce its fourth-quarter and full-ye ...

Core Insights - AvalonBay Communities, Inc. (AVB) is a real estate investment trust (REIT) with a market cap of $25.4 billion, focusing on the development, acquisition, and operation of apartment communities across major U.S. markets [1] - The company is expected to announce its fiscal Q4 2025 results soon, with analysts predicting a core FFO of $2.85 per share, reflecting a 1.8% increase from the previous year's $2.80 per share [2] - For fiscal 2025, core FFO per share is projected to be $11.25, a 2.2% rise from $11.01 in fiscal 2024, with further growth expected in fiscal 2026 to $11.65 per share [3] Stock Performance - AVB stock has decreased by 15% over the past 52 weeks, underperforming the S&P 500 Index's gain of 17.1% and the State Street Real Estate Select Sector SPDR ETF's slight increase [4] - Following the Q3 2025 results announcement, AVB shares fell nearly 1% as the reported core FFO of $2.75 per share missed analysts' expectations, and the Q4 forecast was below estimates [5] Analyst Ratings - The consensus view on AVB stock is cautiously optimistic, with a "Moderate Buy" rating from analysts; 7 analysts recommend a "Strong Buy," 1 a "Moderate Buy," and 16 a "Hold" rating [6] - The average analyst price target for AvalonBay Communities is $202.98, indicating a potential upside of 13.1% from current levels [6]