10-Q HTML PDF Q2 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

OR

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission File Number: 1-12672

AVALONBAY COMMUNITIES, INC.

(Exact name of registrant as specified in its charter)

Maryland

77-0404318

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

4040 Wilson Blvd., Suite 1000

Arlington, Virginia 22203

(Address of principal executive offices) (Zip Code)

(703) 329-6300

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

AVB

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date:

142,797,963 shares of common stock, par value $0.01 per share, were outstanding as of July 24, 2026.

Table of Contents

AVALONBAY COMMUNITIES, INC.

FORM 10-Q

INDEX

						PAGE
PART I - FINANCIAL INFORMATION
ITEM 1.			CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
			CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2026 (UNAUDITED) AND DECEMBER 31, 2025			1
			CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025			2
			CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025			3
			CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025			4
			CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025			5
			NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)			7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS						27
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK						48
ITEM 4. CONTROLS AND PROCEDURES						48
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS						48
ITEM 1A. RISK FACTORS						48
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS						55
ITEM 3. DEFAULTS UPON SENIOR SECURITIES						55
ITEM 4. MINE SAFETY DISCLOSURES						55
ITEM 5. OTHER INFORMATION						55
ITEM 6. EXHIBITS						57
SIGNATURES						58

Table of Contents

AVALONBAY COMMUNITIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share data)

			June 30, 2026						December 31, 2025
			(unaudited)
ASSETS
Real estate:
Land and improvements			$	5,007,247					$	4,960,568
Buildings and improvements			21,628,963						21,252,137
Furniture, fixtures and equipment			1,642,780						1,546,813
			28,278,990						27,759,518
Less accumulated depreciation			(9,116,539)						(8,686,084)
Net operating real estate			19,162,451						19,073,434
Construction in progress, including land			1,668,998						1,458,795
Land held for development			101,508						123,751
Real estate assets held for sale, net			41,942						150,262
Total real estate, net			20,974,899						20,806,242
Cash and cash equivalents			80,682						187,234
Restricted cash			165,436						165,849
Unconsolidated investments			199,046						193,441
Deferred development costs			75,440						73,237
Prepaid expenses and other assets			660,707						618,597
Right of use lease assets			144,141						147,537
Total assets			$	22,300,351					$	22,192,137
LIABILITIES AND EQUITY
Unsecured debt, net			$	7,408,395					$	7,879,380
Variable rate unsecured credit facility and commercial paper, net			915,786						739,608
Mortgage notes payable, net			700,599						709,564
Dividends payable			256,954						250,548
Payables for construction			113,585						92,267
Accrued expenses and other liabilities			385,901						391,973
Lease liabilities			162,444						165,200
Accrued interest payable			65,814						68,591
Resident security deposits			62,215						60,689
Total liabilities			10,071,693						10,357,820
Commitments and contingencies
Equity:
Preferred stock, $0.01 par value; $25 liquidation preference; 50,000,000 shares authorized at June 30, 2026 and December 31, 2025; zero shares issued and outstanding at June 30, 2026 and December 31, 2025			-						-
Common stock, $0.01 par value; 280,000,000 shares authorized at June 30, 2026 and December 31, 2025; 141,875,567 and 140,080,657 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively			1,419						1,401
Additional paid-in capital			11,739,908						11,212,296
Accumulated earnings less dividends			242,188						371,157
Accumulated other comprehensive income			38,896						26,486
Total stockholders' equity			12,022,411						11,611,340
Noncontrolling interests			206,247						222,977
Total equity			12,228,658						11,834,317
Total liabilities and equity			$	22,300,351					$	22,192,137

See accompanying notes to Condensed Consolidated Financial Statements.

1

Table of Contents

AVALONBAY COMMUNITIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(Dollars in thousands, except per share data)

			For the three months ended June 30,												For the six months ended June 30,
			2026						2025						2026						2025
Revenue:
Rental and other income			$	775,986					$	758,601					$	1,544,432					$	1,502,739
Management, development and other fees			1,782						1,594						3,615						3,336
Total revenue			777,768						760,195						1,548,047						1,506,075
Expenses:
Operating expenses, excluding property taxes			195,769						190,940						394,188						377,970
Property taxes			90,114						86,031						180,223						167,862
Expensed transaction, development and other pursuit costs, net of recoveries			19,976						2,493						23,392						7,237
Interest expense, net			70,070						64,801						141,559						124,665
Depreciation expense			232,975						231,730						466,079						449,618
General and administrative expense			27,137						22,997						49,214						42,777
Casualty and impairment loss			-						858						4,619						858
Total expenses			636,041						599,850						1,259,274						1,170,987
Income (loss) from unconsolidated investments			7,647						(1,052)						1,120						(2,051)
Structured Investment Program interest income			7,704						6,937						15,185						13,050
(Loss) gain on sale of communities			(338)						99,457						179,574						155,926
Other real estate activity			223						3,637						307						3,792
Income before income taxes			156,963						269,324						484,959						505,805
Income tax (expense) benefit			(70)						531						224						647
Net income			156,893						269,855						485,183						506,452
Net income attributable to noncontrolling interests			(1,173)						(1,190)						(3,733)						(1,190)
Net income attributable to common stockholders			$	155,720					$	268,665					$	481,450					$	505,262
Earnings per common share - basic:
Net income attributable to common stockholders			$	1.11					$	1.89					$	3.43					$	3.55
Earnings per common share - diluted:
Net income attributable to common stockholders			$	1.11					$	1.88					$	3.43					$	3.54

See accompanying notes to Condensed Consolidated Financial Statements.

2

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AVALONBAY COMMUNITIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

(Dollars in thousands)

			For the three months ended June 30,												For the six months ended June 30,
			2026						2025						2026						2025
Comprehensive income:
Net income			$	156,893					$	269,855					$	485,183					$	506,452
Other comprehensive income (loss):
Gain (loss) on cash flow hedges			7,178						(2,263)						13,754						(5,860)
Cash flow hedge gains reclassified to earnings			(687)						(570)						(1,250)						(843)
Other comprehensive income (loss)			6,491						(2,833)						12,504						(6,703)
Comprehensive income			163,384						267,022						497,687						499,749
Comprehensive income attributable to noncontrolling interests			(1,221)						(1,190)						(3,827)						(1,190)
Comprehensive income attributable to common stockholders			$	162,163					$	265,832					$	493,860					$	498,559

See accompanying notes to Condensed Consolidated Financial Statements.