AvalonBay CommunitiesAVB +2.14%84 ROA % is 5.88% as of Mar. 2026, which is 17% above its 10-year median of 5.01. GuruFocus rates AVB with a GF Score™ of 84/100 and a GF Value™ of $207.83 (Fairly Valued). The stock has 5 warning signs investors should review. Among 938 REITs companies, AvalonBay Communities ranks better than 68.12% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. AvalonBay Communities's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,303 Mil.
AvalonBay Communities's average Total Assets over the quarter that ended in Mar. 2026 was $22,160 Mil. Therefore, AvalonBay Communities's annualized ROA % for the quarter that ended in Mar. 2026 was 5.88%.
The historical rank and industry rank for AvalonBay Communities's ROA % or its related term are showing as below:
AVB'
s ROA % Range Over the Past 10 Years
Min: 4.19 Med: 5.01 Max: 5.94
Current: 5.22
During the past 13 years, AvalonBay Communities's highest ROA % was 5.94%. The lowest was 4.19%. And the median was 5.01%.
AVB's ROA % is ranked better than 68.12% of 938
companies
in the REITs industry
Industry Median: 3.22
vs AVB: 5.22
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Residential subindustry, AvalonBay Communities's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AvalonBay Communities ROA % vs REITs Industry
For the REITs industry and Real Estate sector, AvalonBay Communities's ROA % distribution charts can be found below:
* The bar in red indicates where AvalonBay Communities's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
AvalonBay Communities (AVB) has a ROA % of 5.88% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on AvalonBay Communities and its competitors. This is 17% above median its historical median of 5.01. Over the past decade, AvalonBay Communities' ROA % has ranged from 4.19 to 5.94. According to the industry distribution chart, AvalonBay Communities ranks #299 out of 938 companies in the REITs industry, placing it in the top 31.9%.
Is AvalonBay Communities' ROA % too high?
AvalonBay Communities' current ROA % of 5.88% is 17% above median its 10-year median of 5.01. Over the past 10 years, this metric has ranged from a low of 4.19 to a high of 5.94. The REITs industry median ROA % is 3.22. AvalonBay Communities' value of 5.88% is 82.6% above this industry median. Based on the distribution chart, AvalonBay Communities ranks #299 out of 938 companies in the REITs industry, which is above the industry midpoint. Overall, AvalonBay Communities has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AvalonBay Communities' ROA % compare to EQR and ESS?
According to the REITs industry distribution chart, AvalonBay Communities ranks #299 out of 938 companies for ROA %. This puts AvalonBay Communities in the upper half of its industry. The industry median ROA % is 3.22. AvalonBay Communities' value of 5.88% is 82.6% above this benchmark. Historically, AvalonBay Communities' own ROA % has ranged from 4.19 to 5.94 over the past decade. While the company's 10-year median is 5.01 vs. the industry median of 3.22, AvalonBay Communities has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a REITs company?
The median ROA % among REITs companies is 3.22, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AvalonBay Communities's current ROA % of 5.88% is 82.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on AvalonBay Communities and its competitors. For the REITs industry, the median ROA % is 3.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AvalonBay Communities's current ROA % is 5.88%, which is 17% above median its own 10-year median of 5.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AvalonBay Communities stock overvalued right now?
Based on GuruFocus' analysis, AvalonBay Communities (AVB) is currently considered Fairly Valued. The stock's GF Value™ is $207.83, compared to a current price of $190.12 — trading 8.5% below its estimated fair value. The current ROA % is 5.88%, which is 17% above median its 10-year median of 5.01 and 82.6% above the REITs industry median of 3.22. AvalonBay Communities' overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For AvalonBay Communities (AVB), the current ROA % is 5.88% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AvalonBay Communities (AVB) Overvalued in 2026?
Based on GuruFocus' analysis, AvalonBay Communities stock appears to be undervalued.
The current stock price of $190.12 is trading 8.5% below its estimated GF Value™ of $207.83.
GuruFocus considers AvalonBay Communities to be Fairly Valued.
Key valuation signals for AVB:
ROA %: 5.88% (17% above median its 10-year median of 5.01)
GF Value™: $207.83 vs. price of $190.12 (8.5% below fair value)
Industry Position: 82.6% above the REITs median (#299 of 938)
No single metric tells the full story. See the AVB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AvalonBay Communities owns a portfolio of 296 apartment communities with more than 90,000 units and is developing 24 additional properties with approximately 8,600 units. The company focuses on owning large, high-quality properties in major metropolitan areas of New England, New York/New Jersey, Washington, D.C., California, and the Pacific Northwest.
84GF Score
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