A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
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.
Revenue
$777.77M
+2.31% YoY
EPS (Diluted)
$1.11
-40.96% YoY
Operating Income
$529.24M
+4.65% YoY
Filed · Source: SEC EDGAR 10-Q filing
Avalonbay Communities (AVB) reported Q2 FY2026 revenue of $777.77M, up 2.3% year over year. The company posted net income of $155.72M, down 42.0% from a year earlier, with diluted EPS of $1.11. Operating income was $529.24M, up 4.6% year over year. AVB's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
AVB Q2 FY2026 revenue increased 2.3% YoY to $777.77M while net income declined 42.0% to $155.72M due to merger costs and lower asset sale gains.
Last 4 quarters: 3 beats, 1 miss
On May 20, 2026, AVB entered into a merger agreement with Equity Residential (EQR), where each share of AVB stock will be converted into 2.793 common shares of EQR, with completion expected in the second half of 2026 subject to shareholder approvals.
Source: 10-Q Item 2 MD&A, p.27
Net income attributable to common stockholders decreased 42.0% YoY to $155.72M in Q2 FY2026, driven primarily by lower gains on real estate sales and $12.37M in transaction pursuit costs associated with the pending merger.
Source: 10-Q Item 2 MD&A, p.27, 34
Same Store Net Operating Income (NOI) grew 1.0% YoY to $488.55M, as Same Store Residential revenue increased 1.6% (driven by strength in Metro NY/NJ and Northern California), offset by a 2.9% increase in operating expenses.
Source: 10-Q Item 2 MD&A, p.28, 33
As of June 30, 2026, AVB held interests in 27 wholly-owned communities under construction, representing 9,064 apartment homes with a total projected capitalized cost of $3.53B.
Source: 10-Q Item 2 MD&A, p.28
The pending merger with Equity Residential is subject to reciprocal shareholder approvals and customary conditions. If the transaction fails to close under specified circumstances, AVB could be required to pay a substantial termination fee of $1.070B.
Source: 10-Q Item 1A, p.48-50
The stock exchange ratio is fixed at 2.793 EQR shares per AVB share without price adjustments, exposing shareholders to fluctuations in Equity Residential's market price prior to transaction close.
Source: 10-Q Item 1A, p.49
Pendency of the merger imposes interim operational restrictions on AVB and risks key employee retention, while combining two large multifamily REIT platforms involves complex IT, cultural, and property management integration hurdles.
Source: 10-Q Item 1A, p.50-52
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the AVB earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $777.77M | $760.2M | +2.31% |
Operating Income | $529.24M | $505.75M | +4.65% |
Net Income | $155.72M | $268.67M | -42.04% |
EPS (Basic) | $1.11 | $1.89 | -41.27% |
EPS (Diluted) | $1.11 | $1.88 | -40.96% |
AVB reported revenue growth of 2.3% YoY to $777.77M and Same Store NOI growth of 1.0%. However, net income fell 42.0% YoY to $155.72M due to $12.37M in transaction costs for its pending merger with Equity Residential and reduced real estate disposition gains.
On May 20, 2026, AVB agreed to merge with Equity Residential, with AVB shareholders set to receive 2.793 EQR shares per AVB share. The transaction is expected to close in H2 2026, subject to reciprocal shareholder approvals.
AVB highlighted risks surrounding the pending Equity Residential merger, including a potential $1.070B termination fee if the agreement ends under specific conditions, fixed exchange ratio market exposure, and operational integration complexities.
Expected release date, analyst estimates & what to watch
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.
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.
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