AvalonBay shares rose 5.8% post-earnings as first quarter results beat expectations, helped by lower expenses, higher-than-anticipated development NOI, and active share repurchases. Management highlighted a strong setup for the peak leasing season and an accelerating development pipeline.

• Core FFO per share outperformed initial outlook, with $0.02 NOI upside: 80% from lower operating expenses, 20% revenue-driven.
• Same-store residential revenue grew 1.6% year-over-year; occupancy increased 10 basis points to 96.1%.
• $340 million of property dispositions and $200 million in share repurchases completed during the quarter at implied cap rates in the low 6% range.
• Year-to-date asking rents increased in the high 4% range, exceeding prior year’s pace; turnover remained well below historical averages.
• Development pipeline remains robust with $3.5 billion underway and stabilized yields projected at 6.3% at quarter end; $800 million of new starts planned for 2026.