AvalonBay Communities, Inc.AVB
NYSE•Real Estate•REIT - Residential
AvalonBay Communities, Inc., a member of the S&P 500, is an equity REIT. The firm develops, redevelops, acquires and manages communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. As of December 31, 2025, the Company 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 development. AvalonBay Communities, Inc. was incorporated in 1978 and is based in Arlington, United States.
AvalonBay Communities, Inc. (AVB) reported trailing twelve months revenue of $3.07B as of March 2026, a 4.0% increase year-over-year. Quarterly revenue reached $770.28M, reflecting continued top-line momentum.
AvalonBay Communities, Inc. generated $1.15B in TTM net income, with quarterly EBITDA of $517.49M. The operating margin contracted from 68.5% to 67.2%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (67.2%) and net margin (42.6%) indicates significant non-operating expenses or interest burden. Net margin has improved from 31.7% a year ago, signaling stronger bottom-line efficiency.
AVB trades at a P/E of 19.6x (in line with broad market averages) and a P/S of 7.4x. The price-to-book ratio of 2.0x reflects a moderate premium to book value.
The company generated $359.48M in free cash flow over the trailing twelve months, a 2.2% decrease year-over-year, indicating cash generation ability. The balance sheet shows $22.13B in total assets with $9.36B in long-term debt against $11.49B in stockholders equity for a debt-to-equity ratio of 0.8. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~66.9% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~9.2% on average, adequate but below the threshold typically associated with wide moats.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~7.9% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~66.2% — no sign of cost or pricing stress.
FCF covers net income by 1.3x on average — earnings are well-supported by cash generation.
D/E ratio is 0.8 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation