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Get filing alertsAvalonBay reports Q2 2026 results, raises same-store outlook, suspends full-year guidance
Filed July 23, 2026 · Period ending July 22, 2026 · ~2 min read
Key Changes
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high
AvalonBay and Equity Residential announced all-stock merger of equals on May 21, 2026, creating combined company with ~$53B equity market cap, ~$71B enterprise value, and 180,000+ apartments; stockholder vote scheduled Aug 12, 2026
Exhibit 99.1 view on EDGAR → -
high
Q2 2026 Core FFO per share rose 1.4% YoY to $2.86, beating April outlook midpoint of $2.77 by $0.09; EPS fell 41.0% to $1.11 on lower real estate gains and higher transaction costs
Exhibit 99.1 view on EDGAR → -
high
Same-store residential NOI grew 1.0% YoY to $488.6M on 1.6% revenue growth; company raised full-year same-store NOI outlook range to 0% to 1.4% from prior -0.7% to 1.3%
Exhibit 99.1 view on EDGAR → -
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Company suspended full-year EPS, FFO, and Core FFO guidance due to pending Equity Residential merger
Exhibit 99.2 view on EDGAR → -
medium
Settled equity forward contracts in Q2 2026, issuing 2.76M shares at $220.08 for $607.4M proceeds, with remaining 920K shares settled in July at $219.52 for $202.0M; repaid $475M of 2.95% notes at maturity
Exhibit 99.2 view on EDGAR →
Summary
AvalonBay reported Q2 2026 results that beat its April outlook, with Core FFO per share rising 1.4% year-over-year to $2.86, driven by stronger same-store operating performance. Same-store residential NOI grew 1.0% on 1.6% revenue growth, reflecting what management characterized as healthier demand and easing new supply pressures.
The company raised its full-year same-store NOI growth outlook to a range of 0% to 1.4%, up from the prior -0.7% to 1.3%. GAAP EPS fell 41.0% to $1.11, primarily due to lower real estate gains and higher transaction costs. The headline development is the pending all-stock merger of equals with Equity Residential, announced May 21, 2026.
The combined company will have approximately $53 billion in equity market capitalization, $71 billion in total enterprise value, and more than 180,000 rental apartments. Benjamin W. Schall will serve as President and CEO, and the board will consist of 14 trustees, seven from each company. A special stockholder meeting is scheduled for August 12, 2026. Due to the pending merger, AvalonBay suspended its full-year EPS, FFO, and Core FFO guidance. AvalonBay continues to execute its development and capital recycling strategy, starting three new communities totaling 801 homes with $283 million in estimated Total Capital Cost during Q2 2026. The company sold three communities for $340.8 million in the first half of 2026, generating an Economic Gain of $35.8 million, and settled equity forward contracts for $607.4 million in Q2 2026 with an additional $202.0 million in July. The merger vote on August 12 is the near-term focus for shareholders.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
AvalonBay announced Q2 2026 operating results via press release with supplemental information.
Added in current filing · verify on EDGAR →
On July 22, 2026, AvalonBay Communities, Inc. issued a press release announcing its second quarter 2026 operating results.
AvalonBay disclosed its second quarter 2026 operating results through a press release. The filing references supplemental information and attachments available on the company's website, furnished as exhibits to this 8-K. Without access to the actual press release exhibits, the specific financial metrics cannot be summarized here.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Q2 2026 Q2 2025 % Change | EPS $ 1.11 $ 1.88 (41.0) % | FFO per share (1) $ 2.73 $ 2.80 (2.5) %
Core FFO per share (1) $ 2.86 $ 2.82 1.4 %
AvalonBay reported Q2 2026 diluted EPS of $1.11, down 41.0% year-over-year, primarily due to lower real estate gains and higher transaction costs. FFO per share declined 2.5% to $2.73, while Core FFO per share increased 1.4% to $2.86, reflecting improved operating performance excluding non-core items. Core FFO exceeded the April 2026 outlook midpoint of $2.77 by $0.09, driven by stronger Same Store NOI performance.
Added in current filing · view on EDGAR →
Same Store Residential revenue increased $10,958,000, or 1.6%, to $709,586,000. Same Store Residential operating expenses increased $6,134,000, or 2.9%, to $221,034,000 and Same Store Residential NOI increased $4,824,000, or 1.0%, to $488,552,000.
For Q2 2026, Same Store Residential revenue grew 1.6% year-over-year to $709.6 million, while operating expenses rose 2.9% to $221.0 million. Same Store Residential NOI increased 1.0% to $488.6 million, reflecting healthy demand and easing new supply. The company raised its full-year Same Store NOI growth outlook range to 0% to 1.4% from the original -0.7% to 1.3%.
Added in current filing · view on EDGAR →
During the three months ended June 30, 2026, the Company started the construction of three apartment communities:
•Avalon Townhome Collection Central Park, located in Denver, CO;
•Kanso Plymouth, located in Plymouth, MA; and
•Avalon Dulles Innovation, located in Herndon, VA.
These communities are expected to contain an aggregate of 801 apartment homes and 5,000 square feet of commercial space for an estimated Total Capital Cost of $283,000,000.
During Q2 2026, AvalonBay started construction on three new apartment communities totaling 801 apartment homes and 5,000 square feet of commercial space, with an estimated Total Capital Cost of $283 million. The company also completed development of Avalon Parsippany (410 homes, $145 million Total Capital Cost). As of June 30, 2026, AvalonBay had 27 wholly-owned communities under construction representing 9,064 apartment homes with an estimated Total Capital Cost of $3.5 billion.
Added in current filing · view on EDGAR →
During the six months ended June 30, 2026, the Company sold three wholly-owned communities containing an aggregate of 884 apartment homes. These communities were sold for $340,750,000, resulting in a gain in accordance with generally accepted accounting principles in the United States ("GAAP") of $179,688,000 and an Economic Gain of $35,836,000.
AvalonBay sold three wholly-owned communities (884 apartment homes) for $340.8 million during the first half of 2026, generating a GAAP gain of $179.7 million and an Economic Gain of $35.8 million. In July 2026, the company sold an additional community for $68.1 million. During Q2 2026, AvalonBay settled equity forward contracts, issuing 2.76 million shares at $220.08 per share for proceeds of $607.4 million, and in July 2026 settled remaining forwards for an additional $202.0 million.
Event · Exhibit 99.2
Added in current filing · view on EDGAR →
Q2 2026 Q2 2025 % Change | EPS $ 1.11 $ 1.88 (41.0) % | FFO per share (1) $ 2.73 $ 2.80 (2.5) %
Core FFO per share (1) $ 2.86 $ 2.82 1.4 %
AvalonBay reported Q2 2026 diluted EPS of $1.11, down 41.0% from $1.88 in Q2 2025, primarily due to lower real estate gains and higher transaction costs. FFO per share declined 2.5% to $2.73, while Core FFO per share increased 1.4% to $2.86, reflecting improved operating performance offset by capital markets activity. The Core FFO beat the April 2026 outlook midpoint of $2.77 by $0.09, driven by stronger same-store NOI and lower operating expenses.
Added in current filing · view on EDGAR →
Same Store Residential revenue increased $10,958,000, or 1.6%, to $709,586,000. Same Store Residential operating expenses increased $6,134,000, or 2.9%, to $221,034,000 and Same Store Residential NOI increased $4,824,000, or 1.0%, to $488,552,000.
For Q2 2026, same-store residential revenue grew 1.6% year-over-year to $709.6 million, while operating expenses rose 2.9% to $221.0 million, resulting in same-store NOI growth of 1.0% to $488.6 million. The company raised its full-year same-store NOI outlook, citing healthier demand, easing new supply, and disciplined execution.
Added in current filing · view on EDGAR →
During the three months ended June 30, 2026, the Company completed the development of Avalon Parsippany, located in Parsippany, NJ. Avalon Parsippany contains 410 apartment homes and was constructed for a Total Capital Cost of $145,000,000. ... During the six months ended June 30, 2026, the Company sold three wholly-owned communities containing an aggregate of 884 apartment homes. These communities were sold for $340,750,000, resulting in a gain in accordance with generally accepted accounting principles in the United States ("GAAP") of $179,688,000 and an Economic Gain of $35,836,000.
AvalonBay completed one development community in Q2 2026 (410 homes, $145 million Total Capital Cost) and started three new developments totaling 801 homes with estimated Total Capital Cost of $283 million. For the first half of 2026, the company sold three communities (884 homes) for $340.8 million, generating a GAAP gain of $179.7 million and an Economic Gain of $35.8 million. In July 2026, the company sold an additional community for $68.1 million.
Added in current filing · view on EDGAR →
During the three months ended June 30, 2026, the Company settled outstanding equity forward contracts entered into during 2024, issuing 2,760,000 shares of common stock at $220.08 per share for proceeds of $607,433,000. ... During the three months ended June 30, 2026, the Company repaid $475,000,000 principal amount of its 2.95% coupon unsecured notes at par upon maturity.
AvalonBay settled equity forward contracts in Q2 2026, issuing 2.76 million shares at $220.08 per share for $607.4 million in proceeds, and settled the remaining 920,000 shares in July 2026 at $219.52 per share for $202.0 million. The company repaid $475 million of 2.95% unsecured notes at maturity. During the first half of 2026, AvalonBay repurchased 1.13 million shares at an average price of $175.59 per share for $198.5 million, with no repurchases after June 30, 2026.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 27, 2026 · How we verify