A Business at a Glance
0 of 1 daily views used (1 remaining). Sign up free for +5 more daily views (6 total), or try AAPL for a full preview.
AVALONBAY COMMUNITIES INC
AVB
$26.9B
Mkt Cap
$189.61
-0.62%
AVALONBAY COMMUNITIES INC (AVB) has a current P/E ratio of 25.6, compared to its historical median P/E of 23.6. The stock is currently considered Fair based on its historical valuation range.
AVALONBAY COMMUNITIES INC (AVB) has a 5-year average return on invested capital (ROIC) of 9.1%. This is below average and may indicate limited pricing power.
AVALONBAY COMMUNITIES INC (AVB) has a market capitalization of $26.4B. It is classified as a large-cap stock.
Yes, AVALONBAY COMMUNITIES INC (AVB) pays a dividend with a trailing twelve-month yield of 3.78%. The company also returns capital through share buybacks, with a buyback yield of 1.85%.
Based on historical P/E analysis, AVALONBAY COMMUNITIES INC (AVB) appears fair. The current P/E of 25.6 is 8% above its historical median of 23.6. The estimated fair value CAGR (P/E method) is 3.2%.
AVALONBAY COMMUNITIES INC (AVB) operates in the Real Estate Investment Trusts industry, within the Real Estate sector.
AVALONBAY COMMUNITIES INC (AVB) reported annual revenue of $3.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
AvalonBay Communities is a Maryland-incorporated REIT that develops, redevelops, acquires, owns, and operates apartment communities across 11 states and the District of Columbia, with a portfolio of 292 operating communities containing 88,768 apartment homes as of January 31, 2026, concentrated in leading metropolitan areas including New England, New York/New Jersey, the Mid-Atlantic, Pacific Northwest, Northern and Southern California, and expansion regions in Raleigh-Durham, Charlotte, Southeast Florida, Dallas, Austin, and Denver. The company operates under four distinct brands—Avalon (upscale), AVA (transit-served, high-energy neighborhoods), eaves by Avalon (value segment), and Kanso (moderate price with limited amenities and technology-enabled operations)—allowing it to target multiple customer segments and submarkets within its geographic footprint. AvalonBay's business model centers on developing new communities on vacant or improved land, acquiring existing properties, redeveloping underperforming assets, and selectively disposing of communities that no longer align with long-term strategy, with proceeds redeployed into new development and acquisitions; the company also generates additional returns through its Structured Investment Program, which provides mezzanine loans and preferred equity to third-party developers. The company pursues an asset-light development approach by using options and long-term conditional contracts to control land prior to construction, thereby reducing capital deployment and development risk, and operates communities through a hybrid model combining on-site resident-focused associates with centralized shared services, technology platforms, and automation including artificial intelligence to optimize net operating income and resident satisfaction. AvalonBay's competitive moat derives from its scale as one of the largest multifamily developers in its selected markets, its in-house development and operational expertise, strong balance sheet providing cost-effective capital access, and strategic focus on high-barrier-to-entry coastal metropolitan areas characterized by growing employment in high-wage sectors, elevated home-ownership costs, and constrained new supply, positioning the company to generate superior risk-adjusted returns relative to other markets.
【Development earnings accelerating】 Management expects meaningful uplift in development net operating income during 2026 and 2027 as the company's $3.5 billion development pipeline—underwritten conservatively at a 6.3% stabilized yield and match-funded with capital raised at a 4.9% weighted average cost—continues to lease up and stabilize, with development NOI projected at $47 million in 2026 increasing to $120 million in 2027. The company is advancing toward its $80 million annual incremental NOI target from operating initiatives through deployment of artificial intelligence solutions, digital self-service platforms, technology and data enhancements, and staffing optimization, with $55 million of the target expected to be achieved by year-end 2026. Apartment demand is supported by a constructive supply backdrop, with new market-rate deliveries in established regions expected to remain at historically low levels of approximately 80 basis points of stock in 2026, and the economics of renting versus home ownership remaining favorable, positioning the portfolio to benefit from improved fundamentals as the year progresses. Management remains confident in its ability to hit full-year 2026 guidance despite early-year outperformance, noting that peak leasing season remains ahead and that certain first-quarter expense benefits represent timing rather than full-year run-rate changes, while affirming the company's disciplined capital allocation approach including opportunistic share repurchases at compelling valuations.
| Metric | Target | Period |
|---|---|---|
| Development NOI | $47 million | FY2026 |
| Development NOI | $120 million | FY2027 |
| Annual incremental NOI from operating initiatives | $55 million | By year-end 2026 |
Development NOI (FY2026): “we continue to expect a meaningful ramp in development NOI and are projecting $47 million of development NOI this year, increasing to $120 million in 2027”
Development NOI (FY2027): “we continue to expect a meaningful ramp in development NOI and are projecting $47 million of development NOI this year, increasing to $120 million in 2027”
Annual incremental NOI from operating initiatives (By year-end 2026): “Our forecast has us on track to generate $55 million of annual incremental NOI by year-end, our original Horizon 1 target.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.1B | 3.0B | 2.9B | 2.8B | 2.6B | 2.3B |
| Net Income | 1.1B | 1.1B | 1.1B | 929M | 1.1B | 1.0B |
| EPS | $8.10 | $7.40 | $7.60 | $6.56 | $8.12 | $7.19 |
| Free Cash Flow | 1.4B | 1.4B | 1.4B | 1.4B | 1.3B | 1.1B |
| ROIC | 9.4% | 9.8% | 9.7% | 9.2% | 8.9% | 7.9% |
| Gross Margin | - | 32.7% | 33.4% | 33.2% | 32.4% | 28.7% |
| Debt/Equity | 0.88 | 0.87 | 0.68 | 0.68 | 0.74 | 0.74 |
| Dividends/Share | $7.17 | $7.00 | $6.80 | $6.60 | $6.36 | $6.36 |
| Operating Income | 2.0B | 2.0B | 1.9B | 1.8B | 1.7B | 1.5B |
| Operating Margin | 66.2% | 66.5% | 65.6% | 64.7% | 65.6% | 63.5% |
| ROE | 9.9% | 8.9% | 9.1% | 8.1% | 10.2% | 9.3% |
| Shares Outstanding | 139M | 142M | 142M | 142M | 140M | 140M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.7B | 1.9B | 2.0B | 2.2B | 2.3B | 2.3B | 2.3B | 2.3B | 2.6B | 2.8B | 2.9B | 3.0B | 3.1B |
| Gross Margin | 49.4% | 50.1% | 50.6% | 49.6% | 49.2% | 38.3% | 32.6% | 28.7% | 32.4% | 33.2% | 33.4% | 32.7% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 41M | 43M | 46M | 54M | 60M | 58M | 60M | 70M | 74M | 77M | 78M | 87M | 89M |
| EBIT | 1.1B | 1.2B | 1.3B | 1.4B | 1.5B | 1.6B | 1.5B | 1.5B | 1.7B | 1.8B | 1.9B | 2.0B | 2.0B |
| Op. Margin | 65.3% | 65.5% | 64.2% | 64.8% | 65.0% | 66.8% | 64.0% | 63.5% | 65.6% | 64.7% | 65.6% | 66.5% | 66.2% |
| Net Income | 684M | 742M | 1.0B | 877M | 975M | 786M | 828M | 1.0B | 1.1B | 929M | 1.1B | 1.1B | 1.1B |
| Net Margin | 40.6% | 40.0% | 50.6% | 40.6% | 42.7% | 33.8% | 36.0% | 43.8% | 43.8% | 33.6% | 37.1% | 34.6% | 37.2% |
| Non-Recurring | 0 | 11M | 3.9M | 6.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 7.4% | 7.9% | 8.0% | 8.0% | 8.4% | 8.5% | 8.1% | 7.9% | 8.9% | 9.2% | 9.7% | 9.8% | 9.4% |
| ROE | 7.7% | 7.9% | 10.3% | 8.5% | 9.3% | 7.3% | 7.6% | 9.3% | 10.2% | 8.1% | 9.1% | 8.9% | 9.9% |
| ROA | 4.3% | 4.5% | 5.9% | 4.8% | 5.3% | 4.2% | 4.3% | 5.1% | 5.6% | 4.5% | 5.2% | 4.9% | 5.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 887M | 1.1B | 1.2B | 1.3B | 1.3B | 1.3B | 1.2B | 1.2B | 1.4B | 1.6B | 1.6B | 1.7B | 1.7B |
| Free Cash Flow | 881M | 1.1B | 1.2B | 1.2B | 1.3B | 1.3B | 1.1B | 1.1B | 1.3B | 1.4B | 1.4B | 1.4B | 1.4B |
| Owner Earnings | 430M | 581M | 614M | 654M | 650M | 635M | 491M | 419M | 573M | 716M | 736M | 731M | 719M |
| CapEx | 5.9M | 7.7M | 5.9M | 8.8M | 3.3M | 5.3M | 109M | 143M | 160M | 178M | 193M | 262M | 273M |
| Maint. CapEx | 443M | 478M | 531M | 584M | 631M | 662M | 707M | 759M | 815M | 817M | 847M | 913M | 929M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 443M | 478M | 531M | 584M | 631M | 662M | 707M | 759M | 815M | 817M | 847M | 913M | 929M |
| CapEx/OCF | 0.7% | 0.7% | 0.5% | 0.7% | 0.3% | 0.4% | 8.9% | 11.9% | 11.3% | 11.4% | 12.0% | 15.7% | 16.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 594M | 655M | 727M | 773M | 805M | 840M | 883M | 888M | 890M | 923M | 962M | 992M | 998M |
| Dividend Yield | 4.7% | 4.0% | 4.1% | 4.1% | 4.4% | 3.7% | 4.5% | 3.6% | 3.5% | 4.0% | 3.5% | 3.6% | 3.8% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 184M | 0 | 0 | 1.9M | 0 | 488M | 488M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | 1.0% | N/A | N/A | 0.0% | N/A | 1.9% | 1.9% |
| Stock-Based Comp | 14M | 15M | 15M | 18M | 20M | 26M | 22M | 26M | 34M | 27M | 25M | 26M | 26M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 5.9B | 6.1B | 6.9B | 7.3B | 7.0B | 7.3B | 7.4B | 7.7B | 7.7B | 7.6B | 8.0B | 9.9B | 10.0B |
| Cash & Equiv. | 509M | 401M | 215M | 67M | 92M | 40M | 217M | 420M | 613M | 398M | 109M | 187M | 121M |
| Long-Term Debt | 6.4B | 6.5B | 7.1B | 7.4B | 7.1B | 7.4B | 7.6B | 8.1B | 8.3B | 8.0B | 8.1B | 9.3B | 9.4B |
| Debt/Equity | 0.71 | 0.66 | 0.70 | 0.71 | 0.67 | 0.67 | 0.71 | 0.74 | 0.74 | 0.68 | 0.68 | 0.87 | 0.88 |
| Interest Coverage | 6.1 | 6.9 | 7.0 | 7.0 | 6.7 | 7.6 | 6.9 | 6.6 | 7.4 | 8.7 | 8.4 | 7.8 | 7.5 |
| Equity | 9.0B | 9.8B | 10.2B | 10.4B | 10.6B | 11.0B | 10.8B | 10.9B | 11.3B | 11.8B | 11.9B | 11.6B | 11.5B |
| Total Assets | 16.1B | 16.9B | 17.9B | 18.4B | 18.4B | 19.1B | 19.2B | 19.9B | 20.5B | 20.7B | 21.0B | 22.2B | 22.1B |
| Total Liabilities | 7.1B | 7.1B | 7.7B | 8.0B | 7.7B | 8.1B | 8.4B | 9.0B | 9.2B | 8.9B | 9.1B | 10.4B | 10.4B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | -267M | -198M | 95M | 189M | 351M | 283M | 126M | 241M | 485M | 478M | 591M | 371M | 340M |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 392M |
| Per Share Data | |||||||||||||
| EPS | 5.21 | 5.51 | 7.52 | 6.35 | 7.05 | 5.63 | 5.89 | 7.19 | 8.12 | 6.56 | 7.60 | 7.40 | 8.10 |
| Owner EPS | 3.28 | 4.32 | 4.46 | 4.74 | 4.70 | 4.55 | 3.49 | 3.00 | 4.09 | 5.06 | 5.17 | 5.15 | 5.17 |
| Book Value | 68.95 | 73.07 | 73.97 | 75.22 | 76.92 | 78.72 | 76.52 | 78.27 | 80.38 | 83.22 | 83.88 | 81.73 | 82.60 |
| Cash Flow/Share | 6.76 | 7.98 | 8.44 | 9.10 | 9.41 | 9.47 | 8.68 | 8.61 | 10.16 | 11.02 | 11.29 | 11.76 | 14.87 |
| Dividends/Share | 4.64 | 5.00 | 5.40 | 5.68 | 5.88 | 6.08 | 6.36 | 6.36 | 6.36 | 6.60 | 6.80 | 7.00 | 7.17 |
| Shares Out. | 131.2M | 134.7M | 137.5M | 138.1M | 138.2M | 139.6M | 140.5M | 139.7M | 140.0M | 141.6M | 142.4M | 142.1M | 139.1M |
| Valuation | |||||||||||||
| P/E Ratio | 22.2 | 23.7 | 17.1 | 21.4 | 19.3 | 29.9 | 22.8 | 30.1 | 17.7 | 27.0 | 27.9 | 24.5 | 23.4 |
| P/FCF | 17.2 | 16.5 | 15.3 | 15.0 | 14.5 | 17.8 | 17.0 | 28.5 | 15.9 | 18.1 | 21.3 | 18.3 | 18.8 |
| EV/EBIT | 19.2 | 19.5 | 18.6 | 18.7 | 17.4 | 19.8 | 17.8 | 26.0 | 16.3 | 27.5 | 28.5 | 26.0 | 17.9 |
| Price/Book | 1.7 | 1.8 | 1.7 | 1.8 | 1.8 | 2.1 | 1.8 | 2.8 | 1.8 | 2.1 | 2.5 | 2.2 | 2.3 |
| Price/Sales | 7.5 | 8.8 | 8.6 | 8.8 | 8.0 | 9.8 | 8.4 | 10.9 | 9.9 | 8.3 | 9.4 | 9.1 | 8.6 |
| FCF Yield | 5.8% | 6.1% | 6.5% | 6.7% | 6.9% | 5.6% | 5.9% | 3.5% | 6.3% | 5.5% | 4.7% | 5.5% | 5.3% |
| Market Cap | 15.2B | 17.6B | 17.6B | 18.8B | 18.8B | 23.5B | 18.8B | 30.3B | 20.1B | 25.1B | 30.2B | 25.8B | 26.4B |
| Avg. Price | 96.92 | 120.67 | 127.64 | 137.84 | 132.79 | 162.63 | 138.34 | 178.58 | 183.76 | 161.49 | 193.08 | 194.90 | 189.61 |
| Year-End Price | 115.54 | 130.66 | 128.24 | 135.81 | 135.95 | 168.13 | 134.13 | 216.61 | 143.46 | 177.05 | 211.83 | 181.48 | 189.61 |
AVALONBAY COMMUNITIES INC passes 2 of 9 quality checks, indicating weak fundamentals.
AVALONBAY COMMUNITIES INC trades at 25.6x trailing earnings, compared to its 15-year median P/E of 23.6x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 19.1x vs a median of 17.4x. The company's 5-year average ROIC is 9.1% with a gross margin of 32.1%. Total shareholder yield (dividends + buybacks) is 5.6%. At current prices, the estimated annualized return to fair value is +2.1%.
AVALONBAY COMMUNITIES INC (AVB) has a net profit margin of 34.6%. This is a strong margin indicating high profitability.
AVALONBAY COMMUNITIES INC (AVB) generated $1.4 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
AVALONBAY COMMUNITIES INC (AVB) has a debt-to-equity ratio of 0.87. This indicates moderate leverage.
AVALONBAY COMMUNITIES INC (AVB) reported earnings per share (EPS) of $7.40 in its most recent fiscal year.
AVALONBAY COMMUNITIES INC (AVB) has a return on equity (ROE) of 8.9%. This indicates moderate shareholder returns.
AVALONBAY COMMUNITIES INC (AVB) has a 5-year average gross margin of 32.1%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for AVALONBAY COMMUNITIES INC (AVB), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
AVALONBAY COMMUNITIES INC (AVB) has a book value per share of $81.73, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects meaningful uplift in development net operating income during 2026 and 2027 as the company's $3.5 billion development pipeline—underwritten conservatively at a 6.3% stabilized yield and match-funded with capital raised at a 4.9% weighted average cost—continues to lease up and stabilize, with development NOI projected at $47 million in 2026 increasing to $120 million in 2027. The company is advancing toward its $80 million annual incremental NOI target from operating initiatives through deployment of artificial intelligence solutions, digital self-service platforms, technology and data enhancements, and staffing optimization, with $55 million of the target expected to be achieved by year-end 2026. Apartment demand is supported by a constructive supply backdrop, with new market-rate deliveries in established regions expected to remain at historically low levels of approximately 80 basis points of stock in 2026, and the economics of renting versus home ownership remaining favorable, positioning the portfolio to benefit from improved fundamentals as the year progresses. Management remains confident in its ability to hit full-year 2026 guidance despite early-year outperformance, noting that peak leasing season remains ahead and that certain first-quarter expense benefits represent timing rather than full-year run-rate changes, while affirming the company's disciplined capital allocation approach including opportunistic share repurchases at compelling valuations.
Based on recent SEC filings and earnings calls, AVALONBAY COMMUNITIES INC (AVB) has provided the following forward guidance: Development NOI: $47 million (FY2026); Development NOI: $120 million (FY2027); Annual incremental NOI from operating initiatives: $55 million (By year-end 2026).