Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
AvalonBay Communities (AVB) delivered solid FY2025 results with revenue growing 4.4% to $3.04B and operating margin expanding to 66.5%, though EPS dipped 2.8% to $7.40 and long-term debt rose 15.5% to $9.33B amid increased investment activity.
Revenue
$3.04B
+4.36% YoY
EPS (Diluted)
$7.40
-2.63% YoY
Operating Income
$2.02B
+5.80% YoY
Source: SEC XBRL
Avalonbay Communities (AVB) reported FY2025 revenue of $3.04B, up 4.4% year over year. Operating margin was 66.5%, up 0.9 points from 65.6% a year earlier. Operating cash flow was $1.67B, up 3.9% year over year.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.11 | 1.16 | Miss -4.3% |
| Mar 2026 | 2.33 | 1.28 | Beat +81.5% |
| Dec 2025This filing | 1.17 | 1.36 | Miss -14.3% |
| Sep 2025 | 2.68 | 1.46 | Beat +84.0% |
Reported EPS of $1.17 versus the $1.36 analyst consensus — a -14.3% miss for Dec 2025.
Compiled by AI from this SEC filing
Total revenue increased 4.4% year-over-year to $3.04B in FY2025 from $2.91B in the prior year, reflecting continued demand for AVB's apartment communities and the company's ability to grow rental income across its portfolio.
Source: 10-K Income Statement (XBRL Financial Data)
Operating margin improved approximately 91 basis points to 66.5% in FY2025 from 65.6% in FY2024, indicating that revenue growth outpaced operating cost increases and demonstrating operational efficiency in the multifamily REIT business.
Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
Investing cash outflows surged 39.7% to -$1.39B, signaling accelerated investment in new developments or acquisitions, funded in part by a 15.5% increase in long-term debt to $9.33B, reflecting AVB's growth-oriented capital strategy.
Source: 10-K Cash Flow Statement & Balance Sheet (XBRL Financial Data)
AVB repurchased $488.1M in shares during FY2025, compared to zero buybacks in FY2024, which contributed to a 2.8% decline in stockholders' equity to $11.61B and partially explains the slight EPS decline despite higher operating income.
Source: 10-K Cash Flow Statement & Balance Sheet (XBRL Financial Data)
Operating cash flow grew 3.9% to $1.67B in FY2025, providing a solid foundation for dividend distributions and ongoing capital investment, consistent with AVB's REIT structure requiring substantial income distribution to shareholders.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Long-term debt increased 15.5% to $9.33B in FY2025, pushing total liabilities up 14.3% to $10.36B while stockholders' equity declined 2.8% to $11.61B. This elevated leverage (Debt-to-Equity of 0.89) increases AVB's sensitivity to interest rate changes and refinancing risk, particularly in a higher-for-longer rate environment.
Source: 10-K Balance Sheet (XBRL Financial Data)
Despite operating income growing 5.8% to $2.02B, basic EPS declined 2.8% to $7.40 from $7.61 in FY2024. This divergence may reflect higher interest expense from increased debt, share count changes, or non-operating charges that reduce net income available to common shareholders.
Source: 10-K Income Statement (XBRL Financial Data)
Investing cash outflows increased sharply by 39.7% to -$1.39B, suggesting significant new development or acquisition commitments. Large-scale real estate development carries execution risk including cost overruns, construction delays, and the possibility that new supply enters markets at unfavorable timing.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
With $9.33B in long-term debt and ongoing capital market activity, AVB is exposed to interest rate fluctuations that could increase borrowing costs on variable-rate instruments or reduce the attractiveness of refinancing fixed-rate maturities. Rising rates could compress net income and free cash flow.
Source: 10-K Balance Sheet (XBRL Financial Data)
AVB deployed $488.1M in share buybacks in FY2025 while simultaneously increasing investment spending and debt. As a REIT, AVB must distribute at least 90% of taxable income, creating potential tension between returning capital to shareholders and funding growth, especially if operating cash flow growth moderates.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.04 $B | 2.91 $B | +4.36% |
Operating Income $B | 2.02 $B | 1.91 $B | +5.80% |
EPS (Basic) $ | 7.40 $ | 7.61 $ | -2.76% |
EPS (Diluted) $ | 7.40 $ | 7.60 $ | -2.63% |
Answers draw on this SEC filing and the data on this page
In Q2 FY2026, AvalonBay Communities (AVB) reported revenue of $777.77M (up 2.3% YoY) while net income fell 42.0% YoY to $155.72M due to lower gains on real estate sales and pursuit costs related to its proposed merger with Equity Residential.
AVB delivered solid Q1 FY2026 results with revenue up 3.3% YoY to $770.3M, net income surging 37.7% to $325.7M, and EPS of $2.33, driven by strong operating margins above 67% and improved cash generation.
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