AvalonBay reported second-quarter 2026 net income of $156.9 million and diluted EPS of $1.11, down from $269.9 million and $1.88 a year earlier. The company recorded FFO per share of $2.73 and Core FFO per share of $2.86 for Q2 2026 and has suspended full-year EPS, FFO and Core FFO guidance due to the proposed merger with Equity Residential. AvalonBay raised its Same Store full-year NOI outlook while providing detailed operating and development activity for the period.

Financial Highlights

  • Net income (Q2 2026): $156,893,000 (GAAP)
  • Diluted earnings per share (Q2 2026): $1.11 (compared with $1.88 in Q2 2025)
  • FFO per diluted share (Q2 2026): $2.73 (Q2 2025: $2.80)
  • Core FFO per diluted share (Q2 2026): $2.86 (Q2 2025: $2.82)
  • Core EBITDAre (Q2 2026): $484,261,000; Interest Coverage: 6.7x; Net Debt-to-Core EBITDAre (annualized): 4.6x

Business Highlights

  • Same Store Residential NOI (Q2 2026) rose to $488.6 million, a 1.0% increase versus prior year, driven by $10.96 million higher Same Store Residential revenue and partially offset by higher operating expenses.
  • YTD Same Store Residential NOI increased 0.6% to $967.5 million on revenue growth of $21.95 million and operating expense increases of $16.05 million.
  • Development activity: completed Avalon Parsippany (410 homes; Total Capital Cost $145.0M); started three communities totaling 801 homes (estimated Total Capital Cost $283.0M); 27 wholly-owned developments under construction expected to contain 9,064 homes (estimated Total Capital Cost $3.526B).
  • Disposition and structured activity: sold three communities YTD for $340.75M (GAAP gain $179.688M; Economic Gain $35.836M); sold eaves Tysons Corner in July for $68.05M; entered a new mezzanine loan commitment up to $15.0M and received full repayment of a $17.58M mezzanine loan.
  • Liquidity and capital markets: unrestricted cash and cash equivalents of $80.682M as of June 30, 2026; repaid $475.0M of 2.95% unsecured notes at maturity; $915.786M outstanding under commercial paper; settled equity forward contracts issuing shares for proceeds in Q2 and July 2026 and repurchased 1,130,336 shares YTD for $198.48M.

Original SEC Filing:

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