# AVALONBAY COMMUNITIES INC (AVB) Informational only - not investment advice. CIK: 0000915912 SIC: 6798 Real Estate Investment Trusts SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Holding And Other Investment Offices](/major-group/67/) > [SIC 6798 Real Estate Investment Trusts](/industry/6798/) Latest 10-K filed: 2026-02-27 SEC page: https://www.sec.gov/edgar/browse/?CIK=915912 Filing source: https://www.sec.gov/Archives/edgar/data/915912/000091591226000004/avb-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0000915912-26-000004 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000915912.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 3,040,725,000 USD | 2025 | verified | | Net income | 1,056,599,000 USD | 2025 | verified | | Assets | 22,192,137,000 USD | 2025 | verified | | Free cash flow | 1,409,336,000 USD | 2025 | computed | | Net margin | 34.75% | 2025 | computed | | Operating margin | 66.46% | 2025 | computed | | Revenue YoY | +4.36% | 2025 | computed | | ROE | 9.10% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | AVB | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 34.7% | 16.8% | 77 | 149 | | Operating margin | 66.5% | 23.2% | 89 | 66 | | Revenue growth | 4.4% | 3.7% | 55 | 149 | | FCF margin | 46.3% | 21.8% | 86 | 70 | | ROE | 9.1% | 5.7% | 71 | 151 | | ROA | 4.8% | 1.5% | 86 | 155 | | Liabilities / equity | 0.89 | 1.48 | 26 | 151 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6798 Real Estate Investment Trusts, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 3040725000 | USD | 2025 | 2026-02-27 | | Net income | 1056599000 | USD | 2025 | 2026-02-27 | | Assets | 22192137000 | USD | 2025 | 2026-02-27 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000915912.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2008 | 2009 | 2010 | 2013 | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | | 2,045,255,000 | 2,158,628,000 | 2,284,535,000 | 2,324,626,000 | 2,301,261,000 | 2,294,850,000 | 2,593,446,000 | 2,767,909,000 | 2,913,757,000 | 3,040,725,000 | | Net income | | | | | | 1,033,708,000 | 876,660,000 | 974,175,000 | 786,103,000 | 827,706,000 | 1,004,356,000 | 1,136,438,000 | 928,438,000 | 1,082,175,000 | 1,056,599,000 | | Operating income | | | | | | 1,313,987,000 | 1,398,978,000 | 1,485,132,000 | 1,551,891,000 | 1,472,421,000 | 1,456,875,000 | 1,701,416,000 | 1,790,786,000 | 1,910,080,000 | 2,020,949,000 | | Diluted EPS | | | | | | 7.52 | 6.35 | 7.05 | 5.63 | 5.89 | 7.19 | 8.12 | 6.56 | 7.60 | 7.40 | | Operating cash flow | | | | | | 1,160,272,000 | 1,256,257,000 | 1,301,111,000 | 1,321,804,000 | 1,219,615,000 | 1,203,170,000 | 1,421,932,000 | 1,560,029,000 | 1,607,878,000 | 1,671,105,000 | | Capital expenditures | | | | | | 66,971,000 | 65,181,000 | 83,607,000 | 135,626,000 | 108,531,000 | 142,688,000 | 160,313,000 | 178,312,000 | 193,348,000 | 261,769,000 | | Share buybacks | 42,159,000 | 0.00 | 0.00 | | | | | | 0.00 | 183,876,000 | 0.00 | 0.00 | 1,911,000 | 0.00 | 488,115,000 | | Assets | | | | | | 17,867,271,000 | 18,414,821,000 | 18,380,200,000 | 19,121,051,000 | 19,199,144,000 | 19,902,016,000 | 20,457,764,000 | 20,678,214,000 | 21,000,737,000 | 22,192,137,000 | | Liabilities | | | | | | 7,688,089,000 | 8,020,719,000 | 7,744,350,000 | 8,127,601,000 | 8,444,293,000 | 8,965,555,000 | 9,201,526,000 | 8,893,423,000 | 9,059,645,000 | 10,357,820,000 | | Stockholders' equity | | | | 8,596,132,000 | 9,046,405,000 | | | 10,632,606,000 | 10,989,549,000 | 10,751,583,000 | 10,932,527,000 | 11,253,476,000 | 11,783,241,000 | 11,941,092,000 | 11,611,340,000 | | Cash and cash equivalents | | | | | | 214,994,000 | 67,088,000 | 91,659,000 | 39,687,000 | 216,976,000 | 420,251,000 | 613,189,000 | 397,890,000 | 108,576,000 | 187,234,000 | | Free cash flow | | | | | | 1,093,301,000 | 1,191,076,000 | 1,217,504,000 | 1,186,178,000 | 1,111,084,000 | 1,060,482,000 | 1,261,619,000 | 1,381,717,000 | 1,414,530,000 | 1,409,336,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2008 | 2009 | 2010 | 2013 | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | | 50.54% | 40.61% | 42.64% | 33.82% | 35.97% | 43.77% | 43.82% | 33.54% | 37.14% | 34.75% | | Operating margin | | | | | | 64.25% | 64.81% | 65.01% | 66.76% | 63.98% | 63.48% | 65.60% | 64.70% | 65.55% | 66.46% | | Return on equity | | | | | | | | 9.16% | 7.15% | 7.70% | 9.19% | 10.10% | 7.88% | 9.06% | 9.10% | | Return on assets | | | | | | 5.79% | 4.76% | 5.30% | 4.11% | 4.31% | 5.05% | 5.56% | 4.49% | 5.15% | 4.76% | | Liabilities / equity | | | | | | | | 0.73 | 0.74 | 0.79 | 0.82 | 0.82 | 0.75 | 0.76 | 0.89 | ## As-reported value updates 10 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/AVB/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000915912.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2010-Q3 | 2010-09-30 | | 24,654,000 | | reported discrete quarter | | 2011-Q1 | 2011-03-31 | | 30,341,000 | | reported discrete quarter | | 2011-Q4 | 2011-12-31 | | 321,913,000 | | derived Q4 = FY annual - nine-month YTD | | 2012-Q1 | 2012-03-31 | | 57,704,000 | | reported discrete quarter | | 2012-Q4 | 2012-12-31 | | 122,357,000 | | derived Q4 = FY annual - nine-month YTD | | 2013-Q1 | 2013-03-31 | | 75,427,000 | | reported discrete quarter | | 2013-Q4 | 2013-12-31 | | 252,212,000 | | derived Q4 = FY annual - nine-month YTD | | 2014-Q1 | 2014-03-31 | | 141,739,000 | | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 3.53 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 1.05 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 2.59 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 697,635,000 | | 1.21 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 704,705,000 | | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 712,859,000 | | 1.22 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 726,041,000 | | 1.78 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 734,307,000 | | 2.61 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 740,549,000 | | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 745,880,000 | | 1.66 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 760,195,000 | 268,665,000 | 1.88 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 766,796,000 | 381,306,000 | 2.68 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 767,856,000 | | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 770,279,000 | 325,730,000 | 2.33 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 777,768,000 | 155,720,000 | 1.11 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from AVB's latest 10-K: [/company/AVB/business/](/company/AVB/business/). ## Risk Factors Verbatim Item 1A Risk Factors from AVB's latest 10-K: [/company/AVB/risk-factors/](/company/AVB/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/915912/000091591226000020/avb-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-07-30 Report date: 2026-06-30 ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to help provide an understanding of our business, financial condition and results of operations. This MD&A should be read in conjunction with our Condensed Consolidated Financial Statements and the accompanying Notes to Condensed Consolidated Financial Statements included elsewhere in this report. This report, including the following MD&A, contains forward-looking statements regarding future events or trends that should be read in conjunction with the factors described under "Forward-Looking Statements" included in this report. Actual results or developments could differ materially from those projected in such statements as a result of the factors described under "Forward-Looking Statements" as well as the risk factors described in Part I, Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2025 (the "Form 10-K") and in Part II, Item 1A. "Risk Factors" in this report. Capitalized terms used without definition have the meanings provided elsewhere in this Form 10-Q. Executive Overview Business Description AvalonBay Communities, Inc. (the "Company," "we," "our" and "us," which terms, unless the context otherwise requires, refer to AvalonBay Communities, Inc. together with its subsidiaries), is a Maryland corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. We develop, redevelop, acquire, own and operate apartment communities in Boston, Massachusetts, the New York/New Jersey metro area, the Mid-Atlantic, Seattle, Washington, and Northern and Southern California, as well as in our expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. We use the term apartment communities to refer to properties that consist of apartment homes or townhomes or a combination of both. We focus on leading metropolitan areas that we believe have offered, and will continue to offer, the opportunity for superior risk-adjusted returns over the long-term on apartment community investments relative to other markets. Our principal financial goal is to increase long-term shareholder value through the development, redevelopment, acquisition, ownership, operation and asset management and, when appropriate, disposition of apartment communities in our markets. To help meet this goal, subject to the restrictions in the Merger Agreement (defined below), we regularly (i) monitor our investment allocation by geographic market and product type, (ii) develop, redevelop and acquire interests in apartment communities in our selected markets, (iii) efficiently operate our communities to maximize resident satisfaction and shareholder return, (iv) selectively sell apartment communities that no longer meet our long term strategy or when opportunities are presented to realize a portion of the value created through our investment and redeploy the proceeds from those sales and (v) maintain a capital structure that we believe is aligned with our business risks and allows us to maintain continuous access to cost-effective capital. We pursue our development, redevelopment, investment and operating activities with the purpose of "Creating a Better Way to Live." On May 20, 2026, the Company, Equity Residential, a Maryland real estate investment trust (“Equity Residential”), ERP Operating Limited Partnership, an Illinois limited partnership (the “ERP Operating Partnership”), and Canopy Merger Sub LLC, a Maryland limited liability company and a direct wholly owned subsidiary of Equity Residential (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). At the effective time of the Merger (the "Effective Time"), each outstanding share of AvalonBay common stock will be converted into the right to receive 2.793 Equity Residential common shares. The Transactions are expected to be completed in the second half of 2026, subject to reciprocal shareholder approvals and other customary closing conditions. See Note 1, “Organization, Basis of Presentation and Significant Accounting Policies” of the Condensed Consolidated Financial Statements for additional discussion regarding the structural, accounting and conditional commitments associated with the pending Merger. The board of trustees and board of directors of both companies, as applicable, have each unanimously approved the Merger Agreement. Second Quarter 2026 Operating Highlights •Net income attributable to common stockholders for the three months ended June 30, 2026 was $155,720,000, a decrease of $112,945,000, or 42.0%, over the prior year period. The decrease was primarily attributable to a decrease in gains from real estate sales and an increase in expensed transaction, development and other pursuit costs, net of recoveries, driven primarily by costs related to the proposed Merger. 27 Table of Contents •Same Store NOI attributable to our apartment rental operations, including parking and other ancillary residential ("Residential") revenue, for the three months ended June 30, 2026 was $488,552,000, an increase of $4,824,000, or 1.0%, over the prior year period. The increase was primarily attributable to an increase in Residential revenue of $10,958,000, or 1.6%, partially offset by an increase in Residential property operating expenses of $6,134,000, or 2.9%. •Other Stabilized Residential NOI for the three months ended June 30, 2026 was $19,549,000, an increase of $9,275,000, over the prior year period due to newly acquired and recently completed Development communities. •Development and Redevelopment Residential NOI for the three months ended June 30, 2026 was $13,571,000, an increase of $9,007,000, over the prior year period due to recently completed Development communities that had not reached stabilized occupancy. Second Quarter 2026 Development Highlights At June 30, 2026, we owned or held a direct or indirect interest in: •27 wholly-owned communities under construction, which are expected to contain 9,064 apartment homes with a projected total capitalized cost of $3,526,000,000. •Land or rights to land on which we expect to develop an additional 31 apartment communities that, if developed as expected, will contain 9,997 apartment homes. Second Quarter 2026 Real Estate Transaction Highlights During the three months ended June 30, 2026, we had no real estate transaction activity. In July 2026, we sold one wholly-owned community containing 217 apartment homes for $68,050,000. Communities Overview Our real estate investments consist primarily of current apartment operating communities ("Current Communities"), consolidated and unconsolidated communities in various stages of development ("Development" communities and "Unconsolidated Development" communities) and Development Rights (as defined below). Our Current Communities are further classified as Same Store communities, Other Stabilized communities, Redevelopment communities and Unconsolidated communities. While we generally establish the classification of communities on an annual basis, we update the classification of communities during the calendar year to the extent that our plans with regard to the disposition or redevelopment of a community change, or if something occurs that materially impacts the operations of a community such as a casualty loss. The following is a description of each category: Current Communities are categorized as Same Store, Other Stabilized, Redevelopment, or Unconsolidated according to the following attributes: •Same Store is composed of consolidated communities where a comparison of operating results from the prior year to the current year is meaningful as these communities were owned and had stabilized occupancy as of the beginning of the respective prior year period. For the six month periods ended June 30, 2026 and 2025, Same Store communities are consolidated for financial reporting purposes, had stabilized occupancy as of January 1, 2025, are not conducting or expected to conduct substantial redevelopment activities and are not held for sale as of June 30, 2026 or probable for disposition to unrelated third parties within the current year. A community is considered to have stabilized occupancy at the earlier of (i) attainment of 90% physical occupancy or (ii) the one year anniversary of completion of development or redevelopment. •Other Stabilized is composed of completed consolidated communities that we own and that are not Same Store but which have stabilized occupancy, as defined above, as of January 1, 2026, or which were acquired subsequent to January 1, 2025. Other Stabilized excludes communities that are conducting, or are probable to conduct substantial redevelopment activities within the current year, as defined below. 28 Table of Contents •Redevelopment is composed of consolidated communities where substantial redevelopment occurred, is in progress, or is probable to begin during the fiscal year. Redevelopment is considered substantial when (i) capital invested is expected to exceed the lesser of $5,000,000 or 10% of the community's pre-redevelopment basis and (ii) physical occupancy is below or is expected to be below 90% during, or as a result of, the redevelopment activity. •Unconsolidated is composed of communities that we have an indirect ownership interest in through our investment interest in an unconsolidated joint venture. Development is composed of consolidated communities that are either currently under construction, were under construction and were completed during the current year or where construction has been complete for less than one year and that do not have stabilized occupancy. These communities may be partially or fully complete and operating. Unconsolidated Development is composed of communities that are either currently under construction, or were under construction and were completed during the current year, in which we have an indirect ownership interest through an unconsolidated joint venture. These communities may be partially or fully complete and operating. Development Rights are development opportunities in the early phase of the development process where we either have an option to acquire land or enter into a leasehold interest, where we are the buyer under a long-term conditional contract to purchase land, where we control the land through a ground lease or own land to develop a new community, or where we are the designated developer in a public-private partnership. We capitalize related pre-development costs incurred in pursuit of new developments for which we currently believe future development is probable. 29 Table of Contents As of June 30, 2026, communities that we owned or held a direct or indirect interest in were classified as follows: [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/915912/000091591226000004/avb-20251231.htm Complete FY 2025 MD&A: /company/AVB/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-27 Report date: 2025-12-31 ITEM 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to help provide an understanding of our business, financial condition and results of operations. This MD&A should be read in conjunction with our Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements included elsewhere in this report. This report, including the following MD&A, contains forward-looking statements regarding future events or trends that should be read in conjunction with the factors described under "Forward-Looking Statements" included in this report. Actual results or developments could differ materially from those projected in such statements as a result of the factors described under "Forward-Looking Statements" as well as the risk factors described in Part I, Item 1A. "Risk Factors" of this report. Capitalized terms used without definition have the meanings provided elsewhere in this Form 10-K. Executive Overview 2025 Financial Highlights Net income attributable to common stockholders for the year ended December 31, 2025 was $1,051,301,000, a decrease of $30,693,000, or 2.8%, from the prior year. The decrease was primarily attributable to an increase in depreciation expense from newly acquired or developed communities, a decrease in gains from real estate sales and increased interest expense, net over the prior year due to decreased interest income resulting from lower cash amounts invested at lower rates, increased commercial paper outstanding and increased effective interest expense for our unsecured indebtedness. These decreases were partially offset by increases in NOI from communities over the prior year. Same Store NOI attributable to our apartment rental operations, including parking and other ancillary residential ("Residential") revenue, for the year ended December 31, 2025 was $1,860,407,000, an increase of $34,598,000, or 1.9%, over the prior year. The increase was due to an increase in Residential revenue of $66,107,000, or 2.5%, partially offset by an increase in Residential property operating expenses of $31,509,000, or 3.8%, over 2024. During 2025, excluding the equity capital raised through forward sales of our common shares not yet settled, we raised approximately $2,253,402,000 of gross capital through the sale of wholly-owned real estate, the issuance of unsecured notes, the settlement of outstanding equity forward contracts entered into in 2024 and borrowings under a variable rate term loan (the "Term Loan"). We believe that our current capital structure will continue to provide financial flexibility to access capital on attractive terms. We believe our portfolio management activity through dispositions, development and acquisitions will continue to create long-term value. During 2025, we: •sold nine wholly-owned communities containing an aggregate of 2,102 apartment homes and 38,000 square feet of commercial space for $811,680,000; •completed the construction of four wholly-owned communities containing an aggregate of 1,320 apartment homes and 32,000 square feet of commercial space for an aggregate total capitalized cost of $561,000,000; •started the construction of eleven wholly-owned communities and expanded the development of two existing communities. These communities, including the expansions, are expected to contain an aggregate of 3,888 apartment homes when completed for an estimated total capitalized cost of $1,636,000,000; •acquired 12 wholly-owned communities containing an aggregate of 3,378 apartment homes for an aggregate purchase price of $826,029,000; and •acquired our joint venture partner's 50% interest in Avalon Alderwood Place, a 328 apartment home community in Lynnwood, WA, for a purchase price of $71,250,000. With the buyout of the joint venture partner's interest, Avalon Alderwood Place is now a wholly owned apartment community and consolidated for financial reporting purposes. During 2025, we i) issued $800,000,000 principal amount of fixed rate unsecured notes, ii) repaid $825,000,000 principal amount of fixed rate unsecured notes, iii) entered into a $550,000,000 variable rate Term Loan, and iv) increased the borrowing capacity under our Credit Facility and Commercial Paper Program to $2,500,000,000 and $1,000,000,000, respectively. 36 Table of Contents We believe that our balance sheet strength, as measured by our current level of indebtedness, our current ability to service interest and other fixed charges, and our current moderate use of financial encumbrances (such as secured financing), provide us with adequate access to liquidity from the capital markets. We expect to be able to meet our reasonably foreseeable liquidity needs, as they arise, through a combination of one or more of the following sources: existing cash on hand; operating cash flows; the settlement of the outstanding equity forwards; borrowings under our Credit Facility and Commercial Paper Program; the issuance of corporate securities (which could include unsecured debt, preferred equity and/or additional common equity after considering the outstanding equity forwards); the sale of apartment communities; secured debt; or through the formation of joint ventures. See the discussion under "Liquidity and Capital Resources." Communities Overview As of December 31, 2025, we owned or held a direct or indirect ownership interest in 320 communities containing 98,694 apartment homes in 11 states and the District of Columbia, of which 24 communities were under construction. We had an indirect interest in eight of the 320 communities which were owned by entities that were not consolidated for financial reporting purposes. In addition, we held a direct or indirect ownership interest in Development Rights for an additional 32 apartment communities that, if developed as expected, will contain an estimated 9,032 apartment homes. Our real estate investments consist primarily of Current Communities, Development communities, Unconsolidated Development communities and Development Rights. Our Current Communities are further classified as Same Store communities, Other Stabilized communities, Redevelopment communities and Unconsolidated communities. Same Store communities are consolidated communities that were owned and had stabilized occupancy as of the beginning of the prior year, allowing for a meaningful comparison of operating results between years. Other Stabilized communities are generally all other completed consolidated communities that have stabilized occupancy at the beginning of the current year or were acquired during the current or prior year. Redevelopment communities are consolidated communities where substantial redevelopment is in progress or is probable to begin during the current year. Unconsolidated communities are communities in which we have an indirect ownership interest in an unconsolidated joint venture. A more detailed description of our reportable segments and other related operating information can be found in Note 8, "Segment Reporting," of our Consolidated Financial Statements. Although each of these categories is important to our business, we generally evaluate overall operating, industry and market trends based on the operating results of Same Store communities, for which a detailed discussion can be found in "Results of Operations" as part of our discussion of overall operating results. We evaluate our current and future cash needs and future operating potential based on acquisition, disposition, development, redevelopment and financing activities within Other Stabilized, Redevelopment and Development communities. Discussions related to current and future cash needs and financing activities can be found under “Liquidity and Capital Resources.” NOI of our current operating communities is one of the financial measures that we use to evaluate the performance of our communities. NOI is affected by the demand and supply dynamics within our markets, our rental rates and occupancy levels and our ability to control operating costs. Our overall financial performance is also impacted by the general availability and cost of capital and the performance of newly developed, redeveloped and acquired apartment communities. Results of Operations Our results of operations are driven by our operating platform and are also affected by national and local market conditions and are reflected in changes in Same Store NOI; NOI derived from acquisitions, development completions and development under construction and in lease-up; loss of NOI related to disposed communities; and capital market and financing activity. See also Part I, Item 1A, "Risk Factors." Discussion of our operating results for 2024 and comparison to 2023 can be found in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Form 10-K filed with the SEC on February 27, 2025. A comparison of our operating results for 2025 and 2024 follows (dollars in thousands). 37 Table of Contents [[GREPCENT_TABLE]] [["","For the year ended December 31,"],["","2025","","2024"],["Revenue:"],["Rental and other income","$","3,033,683","","","$","2,906,676"],["Management, development and other fees","7,042","","","7,081"],["Total revenue","3,040,725","","","2,913,757"],["Expenses:"],["Direct property operating expenses, excluding property taxes","(623,580)","","","(576,115)"],["Property taxes","(342,743)","","","(327,611)"],["Total community operating expenses","(966,323)","","","(903,726)"],["Property management and other indirect operating expenses","(154,591)","","","(169,731)"],["Expensed transaction, development and other pursuit costs, net of recoveries","(10,846)","","","(18,341)"],["Interest expense, net","(259,181)","","","(226,589)"],["Depreciation expense","(913,376)","","","(846,853)"],["General and administrative expense","(86,679)","","","(77,697)"],["Casualty and impairment loss","(1,276)","","","(2,935)"],["Income from unconsolidated investments","39,691","","","32,231"],["Structured Investment Program interest income","27,476","","","18,451"],["Gain on sale of communities, net","335,713","","","363,300"],["Other real estate activity","4,131","","","753"],["Income before income taxes","1,055,464","","","1,082,620"],["Income tax benefit (expense)","$","1,135","","","(445)"],["Net income","1,056,599","","","1,082,175"],["Net income attributable to noncontrolling interests","(5,298)","","","(181)"],["Net income attributable to common stockholders","$","1,051,301","","","$","1,081,994"]] [[/GREPCENT_TABLE]] Net income attributable to common stockholders decreased $30,693,000, or 2.8%, to $1,051,301,000 in 2025 from 2024, primarily due to (i) an increase in depreciation expense from newly acquired or developed communities, (ii) a decrease in gains from real estate sales and (iii) increased interest expense, net over the prior year due to decreased interest income resulting from lower cash amounts invested at lower rates, increased commercial paper outstanding and increased effective interest expense for our unsecured indebtedness. NOI. We define NOI as total property revenue less direct property operating expenses (including property taxes), and excluding: •corporate-level income (such as management, development and other fees); •property management and other indirect operating expenses, net of corporate income; •expensed transaction, development and other pursuit costs, net of recoveries; •interest expense, net; •loss on extinguishment of debt, net; •general and administrative expense; •income from unconsolidated investments; •SIP interest income; •depreciation expense; •income tax expense (benefit); •casualty and impairment loss; •gain on sale of communities, net; •other real estate activity; and •net operating income from real estate assets sold or [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/AVB/mda/fy2025/ All MD&A years: /company/AVB/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/AVB/mda/fy2024/): filed 2025-02-27; accession 0000915912-25-000005 (https://www.sec.gov/Archives/edgar/data/915912/000091591225000005/avb-20241231.htm) - [FY 2023 MD&A](/company/AVB/mda/fy2023/): filed 2024-02-23; accession 0000915912-24-000004 (https://www.sec.gov/Archives/edgar/data/915912/000091591224000004/avb-20231231.htm) - [FY 2022 MD&A](/company/AVB/mda/fy2022/): filed 2023-02-24; accession 0000915912-23-000004 (https://www.sec.gov/Archives/edgar/data/915912/000091591223000004/avb-20221231.htm) - [FY 2021 MD&A](/company/AVB/mda/fy2021/): filed 2022-02-25; accession 0000915912-22-000005 (https://www.sec.gov/Archives/edgar/data/915912/000091591222000005/avb-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6798 Real Estate Investment Trusts) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/AVB.md · JSON record: /company/AVB.json · verified financials: /company/AVB/financials.json / /company/AVB/financials.csv · machine TOC for the whole site: /llms.txt