Q3 2019 Results Compared to Q3 2018 | |||||||||
Per Share (1) | |||||||||
EPS | FFO | Core FFO | |||||||
Q3 2018 per share reported results | $ | 1.39 | $ | 2.26 | $ | 2.28 | |||
Established and Redevelopment Community NOI | 0.06 | 0.06 | 0.06 | ||||||
Other Stabilized and Development Community NOI | 0.08 | 0.08 | 0.08 | ||||||
Capital markets activity | (0.07 | ) | (0.07 | ) | (0.07 | ) | |||
Income tax expense | (0.08 | ) | (0.08 | ) | — | ||||
JV income, overhead and other | — | — | (0.01 | ) | |||||
Gain on sale of real estate and depreciation expense | 0.62 | — | — | ||||||
Q3 2019 per share reported results | $ | 2.00 | $ | 2.25 | $ | 2.34 | |||
(1) For additional detail on reconciling items between EPS, FFO and Core FFO, see Attachment 13, table 5. | |||||||||
YTD 2019 Results | |||||||||
Comparison to YTD 2018 | |||||||||
Per Share (1) | |||||||||
EPS | FFO | Core FFO | |||||||
YTD 2018 per share reported results | $ | 4.26 | $ | 6.65 | $ | 6.69 | |||
Established and Redevelopment Community NOI | 0.24 | 0.24 | 0.24 | ||||||
Other Stabilized and Development Community NOI | 0.24 | 0.24 | 0.22 | ||||||
Capital markets activity | (0.18 | ) | (0.20 | ) | (0.20 | ) | |||
Income tax expense | (0.08 | ) | (0.08 | ) | — | ||||
JV income, overhead and other | (0.05 | ) | (0.05 | ) | (0.04 | ) | |||
YTD 2019 per share reported results | $ | 4.43 | $ | 6.80 | $ | 6.91 | |||
(1) For additional detail on reconciling items between EPS, FFO and Core FFO, see Attachment 13, table 5. | |||||||||
Q3 2019 Compared to Q3 2018 | ||||||||||||
Rental Revenue (1)(2) | Opex (2)(3) | NOI | % of NOI (4) | |||||||||
New England | 3.0 | % | 4.0 | % | 2.5 | % | 14.5 | % | ||||
Metro NY/NJ | 2.2 | % | 6.3 | % | 0.5 | % | 22.6 | % | ||||
Mid-Atlantic | 3.1 | % | 3.6 | % | 2.8 | % | 16.0 | % | ||||
Pacific NW | 3.0 | % | (1.7 | )% | 5.1 | % | 6.0 | % | ||||
No. California | 2.9 | % | 4.5 | % | 2.5 | % | 20.6 | % | ||||
So. California | 2.4 | % | 4.0 | % | 1.9 | % | 20.3 | % | ||||
Total | 2.7 | % | 4.2 | % | 2.1 | % | 100.0 | % | ||||
(1) See Attachment 4, Quarterly Rental Revenue and Occupancy Changes, for additional detail. | ||||||||||||
(2) 2018 results have been adjusted to reflect uncollectible lease revenue as an adjustment to revenue. See Attachment 13, table 1. | ||||||||||||
(3) See Attachment 7, Operating Expenses ("Opex"), for discussion of variances. | ||||||||||||
(4) Represents % of total NOI for Q3 2019 in the presented regions, including amounts related to communities that have been sold or that are classified as held for sale. | ||||||||||||
YTD 2019 Compared to YTD 2018 | ||||||||||||
Rental Revenue (1)(2) | Opex (2)(3) | NOI | % of NOI (4) | |||||||||
New England | 3.0 | % | 2.0 | % | 3.6 | % | 14.3 | % | ||||
Metro NY/NJ | 2.8 | % | 3.1 | % | 2.8 | % | 22.5 | % | ||||
Mid-Atlantic | 3.0 | % | 2.6 | % | 3.2 | % | 16.0 | % | ||||
Pacific NW | 4.2 | % | (2.3 | )% | 7.1 | % | 5.8 | % | ||||
No. California | 3.2 | % | 3.2 | % | 3.2 | % | 20.8 | % | ||||
So. California | 3.1 | % | 4.4 | % | 2.6 | % | 20.6 | % | ||||
Total | 3.1 | % | 2.8 | % | 3.3 | % | 100.0 | % | ||||
(1) See Attachment 6, YTD Rental Revenue and Occupancy Changes, for additional detail. | ||||||||||||
(2) 2018 results have been adjusted to reflect uncollectible lease revenue as an adjustment to revenue. See Attachment 13, table 1. | ||||||||||||
(3) See Attachment 7, Operating Expenses ("Opex"), for discussion of variances. | ||||||||||||
(4) Represents % of total NOI for YTD 2019 in the presented regions, including amounts related to communities that have been sold or that are classified as held for sale. | ||||||||||||
• | Portico at Silver Spring Metro, located in Silver Spring, MD, containing 151 apartment homes, for a purchase price of $43,450,000; and |
• | Avalon Bonterra, located in Hialeah, FL, containing 314 apartment homes, for a purchase price of $90,000,000. |
• | AVA Stamford, located in Stamford, CT; |
• | Archstone Lexington, located in Flower Mound, TX; |
• | Memorial Heights Villages, located in Houston, TX; and |
• | Avalon Orchards, located in Marlborough, MA. |
• | The Company issued $450,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of $446,877,000. The notes mature in June 2029 and were issued with a 3.30% coupon. The effective interest rate of the notes is 3.66%, including the impact of an interest rate hedge and offering costs. |
• | The Company reduced its outstanding secured indebtedness by $123,502,000. The Company repaid $153,752,000 principal amount of mortgage notes secured by six operating communities, at par, of which $140,389,000 was variable rate and $13,363,000 had a 2.99% fixed rate. The Company utilized $47,174,000 of restricted cash held in principal reserve funds as partial repayment of this indebtedness. These repayments were partially offset by a 3.26% fixed rate $30,250,000 secured mortgage that matures in August 2029, which was entered into in conjunction with the acquisition of a community. |
Company Profile | ||
Condensed Consolidated Operating Information........................................................................................................... | Attachment 1 | |
Condensed Consolidated Balance Sheets.................................................................................................................... | Attachment 2 | |
Sequential Operating Information by Business Segment.............................................................................................. | Attachment 3 | |
Market Profile - Established Communities | ||
Quarterly Rental Revenue and Occupancy Changes.................................................................................................... | Attachment 4 | |
Sequential Quarterly Rental Revenue and Occupancy Changes.................................................................................. | Attachment 5 | |
Year to Date Rental Revenue and Occupancy Changes............................................................................................... | Attachment 6 | |
Operating Expenses ("Opex")........................................................................................................................................ | Attachment 7 | |
Development, Joint Venture and Debt Profile | ||
Expensed Community Maintenance Costs and Capitalized Community Expenditures................................................. | Attachment 8 | |
Development Communities............................................................................................................................................ | Attachment 9 | |
Future Development...................................................................................................................................................... | Attachment 10 | |
Unconsolidated Real Estate Investments...................................................................................................................... | Attachment 11 | |
Debt Structure and Select Debt Metrics......................................................................................................................... | Attachment 12 | |
Definitions and Reconciliations | ||
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms................................................... | Attachment 13 |
Q3 | Q3 | YTD | YTD | |||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||||
Revenue: | ||||||||||||||||||||||
Rental and other income (1) | $ | 586,382 | $ | 575,070 | 2.0 | % | $ | 1,727,576 | $ | 1,703,263 | 1.4 | % | ||||||||||
Management, development and other fees | 1,231 | 912 | 35.0 | % | 3,484 | 2,752 | 26.6 | % | ||||||||||||||
Total | 587,613 | 575,982 | 2.0 | % | 1,731,060 | 1,706,015 | 1.5 | % | ||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Direct property operating expenses, excluding property taxes (1) | 112,003 | 111,573 | 0.4 | % | 323,368 | 333,174 | (2.9 | )% | ||||||||||||||
Property taxes | 64,374 | 61,230 | 5.1 | % | 187,890 | 181,120 | 3.7 | % | ||||||||||||||
Property management and other indirect operating expenses | 21,442 | 20,664 | 3.8 | % | 66,457 | 61,158 | 8.7 | % | ||||||||||||||
Total operating expenses | 197,819 | 193,467 | 2.2 | % | 577,715 | 575,452 | 0.4 | % | ||||||||||||||
Interest expense, net | (51,493 | ) | (54,097 | ) | (4.8 | )% | (149,395 | ) | (165,795 | ) | (9.9 | )% | ||||||||||
Loss on extinguishment of debt, net | (93 | ) | (1,678 | ) | (94.5 | )% | (602 | ) | (2,717 | ) | (77.8 | )% | ||||||||||
General and administrative expense (2) | (12,769 | ) | (14,744 | ) | (13.4 | )% | (45,440 | ) | (44,384 | ) | 2.4 | % | ||||||||||
Joint venture income (3) | 1,643 | 10,031 | (83.6 | )% | 780 | 12,560 | (93.8 | )% | ||||||||||||||
Expensed transaction, development and other pursuit costs, net of recoveries | (175 | ) | (523 | ) | (66.5 | )% | (2,562 | ) | (2,212 | ) | 15.8 | % | ||||||||||
Depreciation expense | (165,463 | ) | (156,538 | ) | 5.7 | % | (490,213 | ) | (472,282 | ) | 3.8 | % | ||||||||||
Income tax expense (4) | (11,184 | ) | (29 | ) | N/A | (11,178 | ) | (87 | ) | N/A | ||||||||||||
Casualty and impairment gain, net (4) | — | 554 | (100.0 | )% | — | 612 | (100.0 | )% | ||||||||||||||
Gain on sale of communities | 130,484 | 27,243 | 379.0 | % | 165,849 | 132,444 | 25.2 | % | ||||||||||||||
Gain on other real estate transactions | 73 | 12 | 508.3 | % | 374 | 335 | 11.6 | % | ||||||||||||||
For-sale condominium marketing and administrative costs (4) | (1,108 | ) | (339 | ) | 226.8 | % | (2,526 | ) | (497 | ) | 408.2 | % | ||||||||||
Net income | 279,709 | 192,407 | 45.4 | % | 618,432 | 588,540 | 5.1 | % | ||||||||||||||
Net (income) loss attributable to noncontrolling interests | (32 | ) | 79 | N/A | (108 | ) | 251 | N/A | ||||||||||||||
Net income attributable to common stockholders | $ | 279,677 | $ | 192,486 | 45.3 | % | $ | 618,324 | $ | 588,791 | 5.0 | % | ||||||||||
Net income attributable to common stockholders per common share - basic | $ | 2.00 | $ | 1.39 | 43.9 | % | $ | 4.44 | $ | 4.26 | 4.2 | % | ||||||||||
Net income attributable to common stockholders per common share - diluted | $ | 2.00 | $ | 1.39 | 43.9 | % | $ | 4.43 | $ | 4.26 | 4.0 | % | ||||||||||
FFO (4) | $ | 314,877 | $ | 312,822 | 0.7 | % | $ | 947,758 | $ | 918,720 | 3.2 | % | ||||||||||
Per common share - diluted | $ | 2.25 | $ | 2.26 | (0.4 | )% | $ | 6.80 | $ | 6.65 | 2.3 | % | ||||||||||
Core FFO (4) | $ | 326,903 | $ | 315,194 | 3.7 | % | $ | 963,301 | $ | 924,765 | 4.2 | % | ||||||||||
Per common share - diluted | $ | 2.34 | $ | 2.28 | 2.6 | % | $ | 6.91 | $ | 6.69 | 3.3 | % | ||||||||||
Dividends declared - common | $ | 212,526 | $ | 203,334 | 4.5 | % | $ | 637,241 | $ | 609,972 | 4.5 | % | ||||||||||
Per common share | $ | 1.52 | $ | 1.47 | 3.4 | % | $ | 4.56 | $ | 4.41 | 3.4 | % | ||||||||||
Average shares and participating securities outstanding - basic | 139,691,534 | 138,247,503 | 1.0 | % | 139,304,905 | 138,222,333 | 0.8 | % | ||||||||||||||
Average shares outstanding - diluted | 139,852,674 | 138,323,064 | 1.1 | % | 139,438,064 | 138,230,724 | 0.9 | % | ||||||||||||||
Total outstanding common shares and operating partnership units | 139,667,799 | 138,229,668 | 1.0 | % | 139,667,799 | 138,229,668 | 1.0 | % |
(1) | Historically, the Company presented charges related to uncollectible lease revenue in operating expenses. With the Company’s adoption of ASU 2016-02, Leases, the Company is presenting such charges as an adjustment to revenue in its consolidated GAAP financial statements on a prospective basis, beginning January 1, 2019. |
(2) | Amounts include legal settlement proceeds as detailed in Attachment 13 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 5. |
(3) | Joint venture income includes amounts related to disposition activity as well as amounts earned for the Company's promoted interest. |
(4) | For additional detail, see Attachment 13 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 5. |
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
Real estate | $ | 21,237,254 | $ | 20,424,325 | ||||
Less accumulated depreciation | (5,003,393 | ) | (4,601,447 | ) | ||||
Net operating real estate | 16,233,861 | 15,822,878 | ||||||
Construction in progress, including land | 1,411,823 | 1,768,132 | ||||||
Land held for development | 20,095 | 84,712 | ||||||
For-sale condominium inventory (1) | 453,686 | — | ||||||
Real estate assets held for sale, net | — | 55,208 | ||||||
Total real estate, net | 18,119,465 | 17,730,930 | ||||||
Cash and cash equivalents | 246,425 | 91,659 | ||||||
Cash in escrow | 88,329 | 126,205 | ||||||
Resident security deposits | 34,172 | 31,816 | ||||||
Investments in unconsolidated real estate entities | 207,204 | 217,432 | ||||||
Other assets | 364,872 | 182,158 | ||||||
Total assets | $ | 19,060,467 | $ | 18,380,200 | ||||
Unsecured notes, net | $ | 6,356,890 | $ | 5,905,993 | ||||
Unsecured credit facility | — | — | ||||||
Notes payable, net | 1,004,389 | 1,134,270 | ||||||
Resident security deposits | 61,961 | 58,415 | ||||||
Other liabilities | 818,799 | 645,672 | ||||||
Total liabilities | 8,242,039 | 7,744,350 | ||||||
Redeemable noncontrolling interests | 3,355 | 3,244 | ||||||
Equity | 10,815,073 | 10,632,606 | ||||||
Total liabilities and equity | $ | 19,060,467 | $ | 18,380,200 |
Total | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||
Apartment | September | June | March | December | |||||||||||||||
Homes | 30, 2019 | 30, 2019 | 31, 2019 | 31, 2018 | |||||||||||||||
RENTAL REVENUE (2)(3) | |||||||||||||||||||
Established | 59,744 | $ | 460,849 | $ | 456,348 | $ | 450,873 | $ | 450,349 | ||||||||||
Other Stabilized (4) | 10,172 | 75,969 | 72,816 | 69,689 | 67,026 | ||||||||||||||
Redevelopment | 4,249 | 33,462 | 32,642 | 31,808 | 31,939 | ||||||||||||||
Development | 7,823 | 12,977 | 7,418 | 3,767 | 2,277 | ||||||||||||||
Total Consolidated Communities | 81,988 | $ | 583,257 | $ | 569,224 | $ | 556,137 | $ | 551,591 | ||||||||||
OPERATING EXPENSE (3) | |||||||||||||||||||
Established | $ | 134,208 | $ | 130,688 | $ | 125,990 | $ | 124,523 | |||||||||||
Other Stabilized (4) | 25,525 | 23,631 | 22,355 | 21,612 | |||||||||||||||
Redevelopment | 10,361 | 10,055 | 9,770 | 9,738 | |||||||||||||||
Development | 5,191 | 3,920 | 2,327 | 1,165 | |||||||||||||||
Total Consolidated Communities | $ | 175,285 | $ | 168,294 | $ | 160,442 | $ | 157,038 | |||||||||||
NOI (5) | |||||||||||||||||||
Established | $ | 327,025 | $ | 326,267 | $ | 325,350 | $ | 326,158 | |||||||||||
Other Stabilized (4) | 51,187 | 49,540 | 47,843 | 45,494 | |||||||||||||||
Redevelopment | 23,106 | 22,587 | 22,040 | 22,202 | |||||||||||||||
Development | 7,791 | 3,501 | 1,443 | 1,113 | |||||||||||||||
Total Consolidated Communities | $ | 409,109 | $ | 401,895 | $ | 396,676 | $ | 394,967 | |||||||||||
AVERAGE REVENUE PER OCCUPIED HOME (6) | |||||||||||||||||||
Established | $ | 2,680 | $ | 2,649 | $ | 2,621 | $ | 2,616 | |||||||||||
Other Stabilized (4) | $ | 2,648 | $ | 2,653 | $ | 2,613 | $ | 2,610 | |||||||||||
Redevelopment | $ | 2,767 | $ | 2,697 | $ | 2,661 | $ | 2,655 | |||||||||||
ECONOMIC OCCUPANCY (6) | |||||||||||||||||||
Established | 95.9 | % | 96.1 | % | 96.0 | % | 96.1 | % | |||||||||||
Other Stabilized (4) | 95.4 | % | 94.6 | % | 94.4 | % | 94.4 | % | |||||||||||
Redevelopment | 94.9 | % | 94.9 | % | 93.8 | % | 94.4 | % | |||||||||||
ESTABLISHED COMMUNITIES TURNOVER (7) | |||||||||||||||||||
Current year period / Prior year period | 65.3% / 67.5% | 56.5% / 58.1% | 41.5% / 44.1% | 42.3% / 45.3% | |||||||||||||||
Current year period YTD / Prior year period YTD | 54.5% / 56.6% | 53.0% / 53.1% |
(1) | Includes consolidated communities and excludes amounts related to communities that have been sold or that are classified as held for sale. |
(2) | Rental revenue excludes non-qualified REIT income and business interruption insurance proceeds. |
(3) | Q4 2018 results have been adjusted to reflect uncollectible lease revenue as a reduction of revenue for comparable presentation to the Q1, Q2 and Q3 2019 results. See Attachment 13, table 2, for additional detail and reconciliations. |
(4) | Results for these communities for quarters prior to January 1, 2019 may reflect community operations prior to stabilization, including periods of lease-up, such that occupancy levels are below what would be considered stabilized. |
(5) | See Attachment 13 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
(6) | For per home rent projections and Economic Occupancy for Development Communities currently under construction and/or completed in Q3 2019, see Attachment 9 - Development Communities. |
(7) | Turnover represents the annualized number of units turned over during the period, divided by the total number of apartment homes for Established Communities for the respective reporting period. |
ESTABLISHED COMMUNITIES LIKE-TERM EFFECTIVE RENT CHANGE (5) | ||||
Q3 2019 | Q3 2018 | |||
New England | 4.6% | 4.1% | ||
Metro NY/NJ | 2.8% | 3.4% | ||
Mid-Atlantic | 3.8% | 2.4% | ||
Pacific NW | 4.1% | 4.0% | ||
No. California | 2.9% | 4.1% | ||
So. California | 2.4% | 3.7% | ||
Total | 3.2% | 3.6% | ||
Apartment Homes | Average Rental Rates (2) | Economic Occupancy | Rental Revenue ($000s) | |||||||||||||||||||||||||||||||||||
% Change incl. Redev (3) | ||||||||||||||||||||||||||||||||||||||
Q3 19 | Q3 18 | % Change | Q3 19 | Q3 18 | % Change | Q3 19 | Q3 18 | % Change | ||||||||||||||||||||||||||||||
New England | ||||||||||||||||||||||||||||||||||||||
Boston, MA | 7,045 | $ | 2,729 | $ | 2,630 | 3.8 | % | 96.0 | % | 96.3 | % | (0.3 | )% | $ | 55,370 | $ | 53,521 | 3.5 | % | 4.1 | % | |||||||||||||||||
Fairfield, CT | 1,371 | 2,359 | 2,338 | 0.9 | % | 95.7 | % | 96.5 | % | (0.8 | )% | 9,282 | 9,276 | 0.1 | % | (0.4 | )% | |||||||||||||||||||||
New England | 8,416 | 2,669 | 2,582 | 3.4 | % | 95.9 | % | 96.3 | % | (0.4 | )% | 64,652 | 62,797 | 3.0 | % | 3.4 | % | |||||||||||||||||||||
Metro NY/NJ | ||||||||||||||||||||||||||||||||||||||
New York City, NY | 3,058 | 3,803 | 3,696 | 2.9 | % | 96.5 | % | 96.6 | % | (0.1 | )% | 33,682 | 32,763 | 2.8 | % | 2.0 | % | |||||||||||||||||||||
New York - Suburban | 3,533 | 3,271 | 3,184 | 2.7 | % | 95.7 | % | 96.3 | % | (0.6 | )% | 33,178 | 32,503 | 2.1 | % | 2.2 | % | |||||||||||||||||||||
New Jersey | 4,872 | 2,608 | 2,562 | 1.8 | % | 95.9 | % | 96.1 | % | (0.2 | )% | 36,554 | 35,971 | 1.6 | % | 2.0 | % | |||||||||||||||||||||
Metro NY/NJ | 11,463 | 3,131 | 3,056 | 2.5 | % | 96.0 | % | 96.3 | % | (0.3 | )% | 103,414 | 101,237 | 2.2 | % | 2.1 | % | |||||||||||||||||||||
Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||
Washington Metro/Baltimore, MD | 11,232 | 2,278 | 2,210 | 3.1 | % | 96.2 | % | 96.2 | % | 0.0 | % | 73,845 | 71,653 | 3.1 | % | 3.3 | % | |||||||||||||||||||||
Mid-Atlantic | 11,232 | 2,278 | 2,210 | 3.1 | % | 96.2 | % | 96.2 | % | 0.0 | % | 73,845 | 71,653 | 3.1 | % | 3.3 | % | |||||||||||||||||||||
Pacific Northwest | ||||||||||||||||||||||||||||||||||||||
Seattle, WA | 4,116 | 2,406 | 2,333 | 3.1 | % | 95.9 | % | 96.0 | % | (0.1 | )% | 28,481 | 27,645 | 3.0 | % | 3.0 | % | |||||||||||||||||||||
Pacific Northwest | 4,116 | 2,406 | 2,333 | 3.1 | % | 95.9 | % | 96.0 | % | (0.1 | )% | 28,481 | 27,645 | 3.0 | % | 3.0 | % | |||||||||||||||||||||
Northern California | ||||||||||||||||||||||||||||||||||||||
San Jose, CA | 3,535 | 3,192 | 3,067 | 4.1 | % | 96.2 | % | 96.2 | % | 0.0 | % | 32,573 | 31,290 | 4.1 | % | 4.0 | % | |||||||||||||||||||||
Oakland-East Bay, CA | 2,944 | 2,605 | 2,567 | 1.5 | % | 95.8 | % | 95.9 | % | (0.1 | )% | 22,045 | 21,745 | 1.4 | % | 2.0 | % | |||||||||||||||||||||
San Francisco, CA | 3,349 | 3,549 | 3,449 | 2.9 | % | 95.9 | % | 96.0 | % | (0.1 | )% | 34,210 | 33,270 | 2.8 | % | 2.8 | % | |||||||||||||||||||||
Northern California | 9,828 | 3,138 | 3,049 | 2.9 | % | 96.0 | % | 96.0 | % | 0.0 | % | 88,828 | 86,305 | 2.9 | % | 3.0 | % | |||||||||||||||||||||
Southern California | ||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | 9,802 | 2,509 | 2,436 | 3.0 | % | 95.5 | % | 95.7 | % | (0.2 | )% | 70,461 | 68,575 | 2.8 | % | 3.5 | % | |||||||||||||||||||||
Orange County, CA | 2,821 | 2,234 | 2,184 | 2.3 | % | 95.3 | % | 95.2 | % | 0.1 | % | 18,023 | 17,601 | 2.4 | % | 2.2 | % | |||||||||||||||||||||
San Diego, CA | 2,066 | 2,208 | 2,174 | 1.6 | % | 96.0 | % | 96.7 | % | (0.7 | )% | 13,145 | 13,029 | 0.9 | % | 0.9 | % | |||||||||||||||||||||
Southern California | 14,689 | 2,414 | 2,351 | 2.7 | % | 95.5 | % | 95.8 | % | (0.3 | )% | 101,629 | 99,205 | 2.4 | % | 3.0 | % | |||||||||||||||||||||
Total Established | 59,744 | $ | 2,680 | $ | 2,605 | 2.9 | % | 95.9 | % | 96.1 | % | (0.2 | )% | $ | 460,849 | $ | 448,842 | 2.7 | % | (4) | 2.9 | % |
(1) | Established Communities are communities with Stabilized Operations as of January 1, 2018 such that a comparison of Q3 2018 to Q3 2019 is meaningful. Q3 2018 operating results for Established Communities have been adjusted to reflect uncollectible lease revenue as a reduction of revenue for comparable presentation to Q3 2019 operating results. See Attachment 13, table 1, for additional detail and a reconciliation. |
(2) | Reflects the effect of concessions amortized over the average lease term. |
(3) | Represents the change in rental revenue if the Company were to include planned, current and previously completed Redevelopment Communities, excluding those with operations impacted by a casualty loss, as part of its Established Communities portfolio. |
(4) | With concessions reflected on a cash basis, rental revenue from Established Communities increased 2.5% from Q3 2018 to Q3 2019. See Attachment 13, table 10, for additional detail and a reconciliation. With uncollectible lease revenue included as a component of operating expenses instead of as an adjustment to revenue, rental revenue from Established Communities would have remained consistent with an increase of 2.7%. See Attachment 13, table 1, for additional detail and a reconciliation. |
Apartment Homes | Average Rental Rates (2) | Economic Occupancy | Rental Revenue ($000s) | |||||||||||||||||||||||||||||||||||
% Change incl. Redev (3) | ||||||||||||||||||||||||||||||||||||||
Q3 19 | Q2 19 | % Change | Q3 19 | Q2 19 | % Change | Q3 19 | Q2 19 | % Change | ||||||||||||||||||||||||||||||
New England | ||||||||||||||||||||||||||||||||||||||
Boston, MA | 7,045 | $ | 2,729 | $ | 2,669 | 2.2 | % | 96.0 | % | 95.4 | % | 0.6 | % | $ | 55,370 | $ | 53,846 | 2.8 | % | 3.2 | % | |||||||||||||||||
Fairfield, CT | 1,371 | 2,359 | 2,320 | 1.7 | % | 95.7 | % | 96.5 | % | (0.8 | )% | 9,282 | 9,207 | 0.8 | % | 0.1 | % | |||||||||||||||||||||
New England | 8,416 | 2,669 | 2,613 | 2.1 | % | 95.9 | % | 95.6 | % | 0.3 | % | 64,652 | 63,053 | 2.5 | % | 2.7 | % | |||||||||||||||||||||
Metro NY/NJ | ||||||||||||||||||||||||||||||||||||||
New York City, NY | 3,058 | 3,803 | 3,770 | 0.9 | % | 96.5 | % | 96.3 | % | 0.2 | % | 33,682 | 33,306 | 1.1 | % | 1.2 | % | |||||||||||||||||||||
New York - Suburban | 3,533 | 3,271 | 3,245 | 0.8 | % | 95.7 | % | 96.1 | % | (0.4 | )% | 33,178 | 33,060 | 0.4 | % | 0.7 | % | |||||||||||||||||||||
New Jersey | 4,872 | 2,608 | 2,578 | 1.2 | % | 95.9 | % | 96.6 | % | (0.7 | )% | 36,554 | 36,404 | 0.4 | % | 0.5 | % | |||||||||||||||||||||
Metro NY/NJ | 11,463 | 3,131 | 3,101 | 1.0 | % | 96.0 | % | 96.4 | % | (0.4 | )% | 103,414 | 102,770 | 0.6 | % | 0.8 | % | |||||||||||||||||||||
Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||
Washington Metro/Baltimore, MD | 11,232 | 2,278 | 2,249 | 1.3 | % | 96.2 | % | 96.4 | % | (0.2 | )% | 73,845 | 73,038 | 1.1 | % | 1.3 | % | |||||||||||||||||||||
Mid-Atlantic | 11,232 | 2,278 | 2,249 | 1.3 | % | 96.2 | % | 96.4 | % | (0.2 | )% | 73,845 | 73,038 | 1.1 | % | 1.3 | % | |||||||||||||||||||||
Pacific Northwest | ||||||||||||||||||||||||||||||||||||||
Seattle, WA | 4,116 | 2,406 | 2,361 | 1.9 | % | 95.9 | % | 96.4 | % | (0.5 | )% | 28,481 | 28,110 | 1.3 | % | 1.3 | % | |||||||||||||||||||||
Pacific Northwest | 4,116 | 2,406 | 2,361 | 1.9 | % | 95.9 | % | 96.4 | % | (0.5 | )% | 28,481 | 28,110 | 1.3 | % | 1.3 | % | |||||||||||||||||||||
Northern California | ||||||||||||||||||||||||||||||||||||||
San Jose, CA | 3,535 | 3,192 | 3,149 | 1.4 | % | 96.2 | % | 96.5 | % | (0.3 | )% | 32,573 | 32,217 | 1.1 | % | 1.0 | % | |||||||||||||||||||||
Oakland-East Bay, CA | 2,944 | 2,605 | 2,582 | 0.9 | % | 95.8 | % | 96.2 | % | (0.4 | )% | 22,045 | 21,945 | 0.5 | % | 0.6 | % | |||||||||||||||||||||
San Francisco, CA | 3,349 | 3,549 | 3,536 | 0.4 | % | 95.9 | % | 95.9 | % | 0.0 | % | 34,210 | 34,059 | 0.4 | % | 0.4 | % | |||||||||||||||||||||
Northern California | 9,828 | 3,138 | 3,111 | 0.9 | % | 96.0 | % | 96.2 | % | (0.2 | )% | 88,828 | 88,221 | 0.7 | % | 0.7 | % | |||||||||||||||||||||
Southern California | ||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | 9,802 | 2,509 | 2,491 | 0.7 | % | 95.5 | % | 95.8 | % | (0.3 | )% | 70,461 | 70,159 | 0.4 | % | 0.3 | % | |||||||||||||||||||||
Orange County, CA | 2,821 | 2,234 | 2,210 | 1.1 | % | 95.3 | % | 96.3 | % | (1.0 | )% | 18,023 | 18,009 | 0.1 | % | 1.2 | % | |||||||||||||||||||||
San Diego, CA | 2,066 | 2,208 | 2,191 | 0.8 | % | 96.0 | % | 95.7 | % | 0.3 | % | 13,145 | 12,988 | 1.2 | % | 1.2 | % | |||||||||||||||||||||
Southern California | 14,689 | 2,414 | 2,395 | 0.8 | % | 95.5 | % | 95.9 | % | (0.4 | )% | 101,629 | 101,156 | 0.5 | % | 0.5 | % | |||||||||||||||||||||
Total Established | 59,744 | $ | 2,680 | $ | 2,649 | 1.2 | % | 95.9 | % | 96.1 | % | (0.2 | )% | $ | 460,849 | $ | 456,348 | 1.0 | % | (4) | 1.1 | % |
(1) | Established Communities are communities with Stabilized Operations as of January 1, 2018. |
(2) | Reflects the effect of concessions amortized over the average lease term. |
(3) | Represents the change in rental revenue if the Company were to include planned, current and previously completed Redevelopment Communities, excluding those with operations impacted by a casualty loss, as part of its Established Communities portfolio. |
(4) | With uncollectible lease revenue included as a component of operating expenses instead of as an adjustment to revenue, rental revenue from Established Communities would have increased 0.9%. See Attachment 13, table 1, for additional detail and a reconciliation. |
Apartment Homes | Average Rental Rates (2) | Economic Occupancy | Rental Revenue ($000s) | |||||||||||||||||||||||||||||||||||
Year to Date 2019 | Year to Date 2018 | % Change | Year to Date 2019 | Year to Date 2018 | % Change | Year to Date 2019 | Year to Date 2018 | % Change | % Change incl. Redev (3) | |||||||||||||||||||||||||||||
New England | ||||||||||||||||||||||||||||||||||||||
Boston, MA | 7,045 | $ | 2,683 | $ | 2,588 | 3.7 | % | 95.5 | % | 95.8 | % | (0.3 | )% | $ | 162,498 | $ | 157,208 | 3.4 | % | 3.7 | % | |||||||||||||||||
Fairfield, CT | 1,371 | 2,331 | 2,300 | 1.3 | % | 96.3 | % | 96.7 | % | (0.4 | )% | 27,690 | 27,448 | 0.9 | % | 0.9 | % | |||||||||||||||||||||
New England | 8,416 | 2,625 | 2,541 | 3.3 | % | 95.6 | % | 95.9 | % | (0.3 | )% | 190,188 | 184,656 | 3.0 | % | 3.3 | % | |||||||||||||||||||||
Metro NY/NJ | ||||||||||||||||||||||||||||||||||||||
New York City, NY | 3,058 | 3,773 | 3,657 | 3.2 | % | 96.1 | % | 96.0 | % | 0.1 | % | 99,784 | 96,582 | 3.3 | % | 2.7 | % | |||||||||||||||||||||
New York - Suburban | 3,533 | 3,240 | 3,125 | 3.7 | % | 95.7 | % | 96.3 | % | (0.6 | )% | 98,606 | 95,684 | 3.1 | % | 3.2 | % | |||||||||||||||||||||
New Jersey | 4,872 | 2,574 | 2,527 | 1.9 | % | 96.5 | % | 96.3 | % | 0.2 | % | 108,858 | 106,641 | 2.1 | % | 2.4 | % | |||||||||||||||||||||
Metro NY/NJ | 11,463 | 3,099 | 3,013 | 2.9 | % | 96.1 | % | 96.2 | % | (0.1 | )% | 307,248 | 298,907 | 2.8 | % | 2.8 | % | |||||||||||||||||||||
Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||
Washington Metro/Baltimore, MD | 11,232 | 2,248 | 2,191 | 2.6 | % | 96.3 | % | 95.9 | % | 0.4 | % | 218,834 | 212,391 | 3.0 | % | 3.0 | % | |||||||||||||||||||||
Mid-Atlantic | 11,232 | 2,248 | 2,191 | 2.6 | % | 96.3 | % | 95.9 | % | 0.4 | % | 218,834 | 212,391 | 3.0 | % | 3.0 | % | |||||||||||||||||||||
Pacific Northwest | ||||||||||||||||||||||||||||||||||||||
Seattle, WA | 4,116 | 2,365 | 2,267 | 4.3 | % | 96.2 | % | 96.3 | % | (0.1 | )% | 84,287 | 80,900 | 4.2 | % | 3.9 | % | |||||||||||||||||||||
Pacific Northwest | 4,116 | 2,365 | 2,267 | 4.3 | % | 96.2 | % | 96.3 | % | (0.1 | )% | 84,287 | 80,900 | 4.2 | % | 3.9 | % | |||||||||||||||||||||
Northern California | ||||||||||||||||||||||||||||||||||||||
San Jose, CA | 3,535 | 3,146 | 3,007 | 4.6 | % | 96.4 | % | 96.8 | % | (0.4 | )% | 96,505 | 92,573 | 4.2 | % | 4.4 | % | |||||||||||||||||||||
Oakland-East Bay, CA | 2,944 | 2,586 | 2,546 | 1.6 | % | 96.1 | % | 96.3 | % | (0.2 | )% | 65,860 | 64,961 | 1.4 | % | 2.0 | % | |||||||||||||||||||||
San Francisco, CA | 3,349 | 3,526 | 3,395 | 3.9 | % | 95.9 | % | 96.4 | % | (0.5 | )% | 101,953 | 98,626 | 3.4 | % | 3.4 | % | |||||||||||||||||||||
Northern California | 9,828 | 3,108 | 3,002 | 3.5 | % | 96.2 | % | 96.5 | % | (0.3 | )% | 264,318 | 256,160 | 3.2 | % | 3.3 | % | |||||||||||||||||||||
Southern California | ||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | 9,802 | 2,490 | 2,401 | 3.7 | % | 95.7 | % | 96.1 | % | (0.4 | )% | 210,261 | 203,451 | 3.3 | % | 4.0 | % | |||||||||||||||||||||
Orange County, CA | 2,821 | 2,212 | 2,159 | 2.5 | % | 96.1 | % | 95.7 | % | 0.4 | % | 53,959 | 52,425 | 2.9 | % | 1.8 | % | |||||||||||||||||||||
San Diego, CA | 2,066 | 2,192 | 2,138 | 2.5 | % | 95.6 | % | 96.3 | % | (0.7 | )% | 38,975 | 38,282 | 1.8 | % | 1.8 | % | |||||||||||||||||||||
Southern California | 14,689 | 2,395 | 2,318 | 3.3 | % | 95.8 | % | 96.0 | % | (0.2 | )% | 303,195 | 294,158 | 3.1 | % | 3.3 | % | |||||||||||||||||||||
Total Established | 59,744 | $ | 2,650 | $ | 2,567 | 3.2 | % | 96.0 | % | 96.1 | % | (0.1 | )% | $ | 1,368,070 | $ | 1,327,172 | 3.1 | % | (4) | 3.2 | % |
(1) | Established Communities are communities with Stabilized Operations as of January 1, 2018 such that a comparison of year to date 2018 to year to date 2019 is meaningful. Year to date 2018 operating results for Established Communities have been adjusted to reflect uncollectible lease revenue as a reduction of revenue for comparable presentation to year to date 2019 operating results. See Attachment 13, table 1, for additional detail and a reconciliation. |
(2) | Reflects the effect of concessions amortized over the average lease term. |
(3) | Represents the change in rental revenue if the Company were to include planned, current and previously completed Redevelopment Communities, excluding those with operations impacted by a casualty loss, as part of its Established Communities portfolio. |
(4) | With concessions reflected on a cash basis, rental revenue from Established Communities increased 2.9% between years. See Attachment 13, table 10, for additional detail and a reconciliation. With uncollectible lease revenue included as a component of operating expenses instead of as an adjustment to revenue, rental revenue from Established Communities would have increased 2.9%. See Attachment 13, table 1, for additional detail and a reconciliation. |
Q3 2019 | Q3 2018 | % Change | Q3 2019 % of Total Opex | Year to Date 2019 | Year to Date 2018 | % Change | Year to Date 2019 % of Total Opex | |||||||||||||||||||||
Property taxes (2) | $ | 49,076 | $ | 47,498 | 3.3 | % | 36.6 | % | $ | 143,426 | $ | 140,348 | 2.2 | % | 36.7 | % | ||||||||||||
Payroll (3) | 29,823 | 28,571 | 4.4 | % | 22.2 | % | 89,994 | 87,638 | 2.7 | % | 23.0 | % | ||||||||||||||||
Repairs & maintenance (4) | 23,797 | 22,388 | 6.3 | % | 17.7 | % | 66,402 | 62,324 | 6.5 | % | 17.0 | % | ||||||||||||||||
Utilities (5) | 12,120 | 12,581 | (3.7 | )% | 9.0 | % | 35,495 | 36,236 | (2.0 | )% | 9.1 | % | ||||||||||||||||
Office operations | 10,138 | 10,073 | 0.6 | % | 7.6 | % | 30,398 | 30,486 | (0.3 | )% | 7.8 | % | ||||||||||||||||
Insurance (6) | 5,432 | 4,807 | 13.0 | % | 4.0 | % | 16,100 | 14,498 | 11.0 | % | 4.1 | % | ||||||||||||||||
Marketing (7) | 3,822 | 2,912 | 31.3 | % | 2.9 | % | 9,069 | 8,641 | 5.0 | % | 2.3 | % | ||||||||||||||||
Total Established Communities Operating Expenses | $ | 134,208 | $ | 128,830 | 4.2 | % | 100.0 | % | $ | 390,884 | $ | 380,171 | 2.8 | % | 100.0 | % |
(1) | Operating expenses for Established Communities exclude indirect costs for off-site corporate-level property management related expenses and other support-related expenses. For comparability purposes, Q3 and YTD 2018 results have been adjusted to present uncollectible lease revenue as a reduction of revenue. Had uncollectible lease revenue been presented as a component of office operations, total Established Communities operating expenses would have increased 4.1% and 2.4% during the three and nine months ended September 30, 2019, respectively, as compared to the prior year periods. See Attachment 13, table 1, for additional detail and a reconciliation. |
(2) | Property taxes increased for the three and nine months ended September 30, 2019 over the prior year periods primarily due to increased assessments in the Company's East Coast and Southern California markets, partially offset by decreased tax rates in the Pacific Northwest. The increase for the nine months ended September 30, 2019 is also partially offset by a successful appeal in Northern California in the current year period. |
(3) | Payroll costs increased for the three and nine months ended September 30, 2019 over the prior year periods primarily due to increased benefits costs and merit increases in associate compensation, partially offset by decreased bonuses and a reduction in on-site positions. |
(4) | Repairs and maintenance increased for the three and nine months ended September 30, 2019 over the prior year periods primarily due to increased turnover costs and the timing of repairs and maintenance projects. |
(5) | Utilities represents aggregate utility costs, net of resident reimbursements. The decreases for the three and nine months ended September 30, 2019 from the prior year periods are primarily due to a decrease in electricity costs related to decreased consumption from the Company's solar and lighting sustainability initiatives, increased recoveries for water submetering and a decrease in costs for gas from the receipt of climate credits in Southern California, partially offset by increased trash costs. |
(6) | Insurance costs consist of premiums, expected claims activity and associated reductions from receipt of claims recoveries. The increases for the three and nine months ended September 30, 2019 over the prior year periods are primarily due to increased property insurance premiums and deductibles and the timing of claims. Insurance costs can be variable due to the amounts and timing of estimated and actual claim activity and the related recoveries received. |
(7) | Marketing costs increased for the three and nine months ended September 30, 2019 over the prior year periods primarily due to increased internet advertising costs in the current year periods, as well as a refund in the prior year periods for third-party call center costs. |
YTD 2019 Maintenance Expensed Per Home | Categorization of YTD 2019 Additional Capitalized Value (2) | ||||||||||||||||||||||||||||||||||||||
Current Communities | Apartment Homes (1) | Carpet Replacement | Other Maintenance (3) | Total | Acquisitions, Construction, Redevelopment & Dispositions (4) | NOI Enhancing (5)(6) | Asset Preservation | YTD 2019 Additional Capitalized Value | NOI Enhancing Per Home (6) | Asset Preservation Per Home | |||||||||||||||||||||||||||||
Established Communities | 59,744 | $ | 113 | $ | 1,729 | $ | 1,842 | $ | — | $ | 28,503 | $ | 58,599 | $ | 87,102 | $ | 477 | $ | 981 | ||||||||||||||||||||
Other Stabilized Communities | 10,172 | 42 | 1,752 | 1,794 | 270,675 | (7) | 1,100 | 2,497 | 274,272 | $ | 108 | $ | 245 | ||||||||||||||||||||||||||
Redevelopment Communities (8) | 4,249 | 76 | 1,822 | 1,898 | 63,759 | — | — | 63,759 | — | — | |||||||||||||||||||||||||||||
Development Communities (8)(9) | 7,823 | 1 | 314 | 315 | 615,387 | — | — | 615,387 | — | — | |||||||||||||||||||||||||||||
Dispositions | — | — | — | — | (282,793 | ) | — | — | (282,793 | ) | — | — | |||||||||||||||||||||||||||
Total | 81,988 | $ | 91 | $ | 1,602 | $ | 1,693 | $ | 667,028 | $ | 29,603 | $ | 61,096 | $ | 757,727 | N/A | N/A |
(1) | Includes consolidated communities and excludes communities that have been sold or that are classified as held for sale. |
(2) | Policy is to capitalize expenditures for the acquisition or development of new assets or expenditures that extend the life of existing assets that will benefit the Company for periods greater than a year. |
(3) | Other maintenance includes maintenance, landscaping and redecorating costs, as well as maintenance related payroll expense. |
(4) | Includes the write-off of impaired assets and additional capitalized spend related to recognized casualty losses, if applicable. |
(5) | Includes $547 in rebates received during the nine months ended September 30, 2019, primarily related to NOI Enhancing Capex incurred during 2018. |
(6) | This Attachment excludes capitalized expenditures for the retail component of communities, which the Company classifies as NOI Enhancing. Established Communities and Other Stabilized Communities exclude $1,363 and $306, respectively, related to retail space. |
(7) | Represents acquired communities, coupled with commitment close-outs and construction true-ups on recently constructed communities. |
(8) | Represents communities that were under construction/reconstruction during the period, including communities where construction/reconstruction has been completed. |
(9) | Includes the spend for The Park Loggia development. |
Other Capitalized Costs | ||||||
Interest | Overhead | |||||
Q4 2018 | $ | 16,323 | $ | 11,917 | ||
Q1 2019 | $ | 17,589 | $ | 11,775 | ||
Q2 2019 | $ | 17,127 | $ | 12,605 | ||
Q3 2019 | $ | 15,443 | $ | 12,538 | ||
Community Information | Number | Total | Schedule | % | % | % | % | ||||||||||||||||||||||||||||
of | Capital | Full Qtr | Avg Rent | Complete | Leased | Occupied | Economic | ||||||||||||||||||||||||||||
Apt | Cost | Initial | Stabilized | Per | Occ. | ||||||||||||||||||||||||||||||
Development Name | Location | Homes | (millions) | Start | Occupancy | Complete | Ops | Home | As of October 21, 2019 | Q3 '19 | |||||||||||||||||||||||||
Communities Under Construction: | |||||||||||||||||||||||||||||||||||
1. | Avalon Boonton | Boonton, NJ | 350 | $ | 93 | Q3 2016 | Q1 2019 | Q4 2019 | Q2 2020 | $ | 2,510 | 91 | % | 81 | % | 74 | % | 56 | % | ||||||||||||||||
2. | Avalon Belltown Towers (1) (2) | Seattle, WA | 274 | 147 | Q4 2016 | Q2 2019 | Q4 2019 | Q2 2020 | 3,410 | 85 | % | 40 | % | 30 | % | 31 | % | ||||||||||||||||||
3. | Avalon Teaneck | Teaneck, NJ | 248 | 73 | Q4 2016 | Q2 2019 | Q1 2020 | Q3 2020 | 2,540 | 57 | % | 65 | % | 53 | % | 32 | % | ||||||||||||||||||
4. | Avalon North Creek | Bothell, WA | 316 | 84 | Q4 2017 | Q2 2019 | Q1 2020 | Q3 2020 | 1,955 | 68 | % | 54 | % | 46 | % | 22 | % | ||||||||||||||||||
5. | Avalon Saugus (1) | Saugus, MA | 280 | 93 | Q2 2018 | Q2 2019 | Q4 2019 | Q3 2020 | 2,435 | 74 | % | 59 | % | 50 | % | 30 | % | ||||||||||||||||||
6. | Avalon Norwood | Norwood, MA | 198 | 61 | Q2 2018 | Q3 2019 | Q1 2020 | Q3 2020 | 2,440 | 21 | % | 48 | % | 20 | % | 13 | % | ||||||||||||||||||
7. | Avalon Public Market | Emeryville, CA | 289 | 175 | Q4 2016 | Q3 2019 | Q2 2020 | Q4 2020 | 3,510 | 34 | % | 39 | % | 24 | % | 10 | % | ||||||||||||||||||
8. | Avalon Yonkers | Yonkers, NY | 590 | 188 | Q4 2017 | Q3 2019 | Q1 2021 | Q2 2021 | 2,750 | 17 | % | 16 | % | 12 | % | 3 | % | ||||||||||||||||||
9. | AVA Hollywood (1) | Hollywood, CA | 695 | 365 | Q4 2016 | Q4 2019 | Q4 2020 | Q2 2021 | 3,380 | — | 5 | % | — | — | |||||||||||||||||||||
10. | Avalon Towson | Towson, MD | 371 | 114 | Q4 2017 | Q1 2020 | Q4 2020 | Q2 2021 | 2,065 | — | — | — | — | ||||||||||||||||||||||
11. | Avalon Walnut Creek II | Walnut Creek, CA | 200 | 109 | Q4 2017 | Q1 2020 | Q2 2020 | Q4 2020 | 3,465 | — | — | — | — | ||||||||||||||||||||||
12. | Avalon Doral | Doral, FL | 350 | 113 | Q2 2018 | Q2 2020 | Q1 2021 | Q3 2021 | 2,275 | — | — | — | — | ||||||||||||||||||||||
13. | Avalon East Harbor | Baltimore, MD | 400 | 139 | Q3 2018 | Q4 2020 | Q3 2021 | Q1 2022 | 2,615 | — | — | — | — | ||||||||||||||||||||||
14. | Avalon Old Bridge | Old Bridge, NJ | 252 | 66 | Q3 2018 | Q1 2020 | Q4 2020 | Q1 2021 | 2,355 | — | — | — | — | ||||||||||||||||||||||
15. | Avalon Newcastle Commons II | Newcastle, WA | 293 | 106 | Q4 2018 | Q3 2020 | Q2 2021 | Q4 2021 | 2,460 | — | — | — | — | ||||||||||||||||||||||
16. | Twinbrook Station | Rockville, MD | 238 | 66 | Q4 2018 | Q3 2020 | Q1 2021 | Q3 2021 | 1,710 | — | — | — | — | ||||||||||||||||||||||
17. | Avalon Harrison (1) | Harrison, NY | 143 | 76 | Q4 2018 | Q1 2021 | Q1 2022 | Q2 2022 | 3,780 | — | — | — | — | ||||||||||||||||||||||
18. | Avalon Brea Place | Brea, CA | 653 | 290 | Q2 2019 | Q1 2021 | Q2 2022 | Q3 2022 | 2,785 | — | — | — | — | ||||||||||||||||||||||
19. | Avalon Foundry Row | Owings Mills, MD | 437 | 100 | Q2 2019 | Q1 2021 | Q1 2022 | Q3 2022 | 1,805 | — | — | — | — | ||||||||||||||||||||||
20. | Avalon Marlborough II | Marlborough, MA | 123 | 42 | Q2 2019 | Q2 2020 | Q4 2020 | Q2 2021 | 2,465 | — | — | — | — | ||||||||||||||||||||||
Communities Under Construction Subtotal / Weighted Average | |||||||||||||||||||||||||||||||||||
6,700 | $ | 2,500 | $ | 2,640 | |||||||||||||||||||||||||||||||
Communities Completed this Quarter: | |||||||||||||||||||||||||||||||||||
1. | AVA Esterra Park | Redmond, WA | 323 | $ | 91 | Q2 2017 | Q4 2018 | Q3 2019 | Q1 2020 | $ | 2,090 | 100 | % | 94 | % | 93 | % | 75 | % | ||||||||||||||||
Communities Completed Subtotal / Weighted Average | 323 | $ | 91 | $ | 2,090 | ||||||||||||||||||||||||||||||
Total/Weighted Average Under Construction and Completed this quarter | 7,023 | $ | 2,591 | $ | 2,615 | ||||||||||||||||||||||||||||||
Total Weighted Average Projected NOI as a % of Total Capital Cost | 5.9% | ||||||||||||||||||||||||||||||||||
Asset Cost Basis (millions) (3)(4): | |||||||||||||||||||||||||||||||||||
Total Capital Cost, under construction and completed | $ | 3,372 | |||||||||||||||||||||||||||||||||
Total Capital Cost, disbursed to date | (2,438 | ) | |||||||||||||||||||||||||||||||||
Total Capital Cost, remaining to invest | $ | 934 |
(1) | Developments containing at least 10,000 square feet of retail space include Avalon Belltown Towers (11,000 sf), Avalon Saugus (23,000 sf), AVA Hollywood (19,000 sf) and Avalon Harrison (27,000 sf). |
(2) | Leased and occupied metrics exclude 20% of the apartment homes, which have been leased on a temporary basis to a third-party hotel operator effective August 2019. |
(3) | Includes the communities presented and The Park Loggia, which contains 172 for-sale residential condominiums and 67,000 square feet of retail space, and is expected to be developed for an estimated Total Capital Cost of $626,000,000. The Company intends to proceed with the sale of the residential portion of The Park Loggia as individual condominiums. The Company completed the first residential condominiums and initial retail space in Q2 2019, with full completion expected in Q4 2019. |
(4) | Includes the communities presented and two additional communities with 550 apartment homes representing $155 million in Total Capital Costs which have completed construction but not yet achieved Stabilized Operations for the full quarter. Q3 2019 NOI for these communities was $5 million. Additionally, Q3 NOI for the retail portion of The Park Loggia was $1 million. |
DEVELOPMENT RIGHTS |
Estimated | Total Capital | |||||||||
# of Rights | Number | Cost | ||||||||
of Homes | (millions) | |||||||||
Development Rights as of 12/31/2018 | 28 | 9,769 | $ | 4,124 | ||||||
Q1 & Q2 2019 | ||||||||||
Q1 & Q2 Additions | 6 | 1,472 | $ | 440 | ||||||
Q1 & Q2 Construction starts | (3 | ) | (1,213 | ) | (432 | ) | ||||
Q1 & Q2 Adjustments to existing Development Rights | (3 | ) | (1,024 | ) | (290 | ) | ||||
Development Rights as of 6/30/2019 | 28 | 9,004 | $ | 3,842 | ||||||
Q3 2019 | ||||||||||
Q3 2019 Additions | 3 | 991 | $ | 333 | ||||||
Q3 2019 Construction starts | — | — | — | |||||||
Q3 2019 Adjustments to existing Development Rights | — | (1 | ) | 42 | ||||||
Development Rights as of 9/30/2019 | 31 | 9,994 | $ | 4,217 | ||||||
Current Development Rights by Region as of September 30, 2019 | ||||||||||
New England | 6 | 1,135 | $ | 421 | ||||||
Metro NY/NJ | 12 | 5,101 | 2,105 | |||||||
Mid-Atlantic | — | — | — | |||||||
Pacific Northwest | 2 | 542 | 170 | |||||||
Northern California | 4 | 1,253 | 747 | |||||||
Southern California | 3 | 791 | 388 | |||||||
Southeast Florida | 1 | 254 | 99 | |||||||
Denver | 3 | 918 | 287 | |||||||
31 | 9,994 | $ | 4,217 | |||||||
Current Development Rights by Classification as of September 30, 2019 | ||||||||||
Conventional | 23 | 6,604 | $ | 2,384 | ||||||
Asset Densification | 6 | 1,890 | 916 | |||||||
Public-Private Partnership | 2 | 1,500 | 917 | |||||||
31 | 9,994 | $ | 4,217 |
Select Operating Information | ||||||||||||||||||||||||||||||||||
Company | Number of | NOI (1)(2) | Disposition Gains and Other Activity (1)(3) | Debt | ||||||||||||||||||||||||||||||
Unconsolidated Real Estate | Number of | Ownership | Apartment | Q3 | YTD | Q3 | YTD | Principal | Interest | |||||||||||||||||||||||||
Investments | Communities | Percentage | Homes | 2019 | 2019 | 2019 | 2019 | Amount (1) | Rate (4) | |||||||||||||||||||||||||
NYTA MF Investors LLC | 5 | 20.0 | % | 1,301 | $ | 10,502 | $ | 28,491 | $ | — | $ | — | $ | 395,939 | 3.88 | % | ||||||||||||||||||
Archstone Multifamily Partners AC LP (the "U.S. Fund") | 5 | 28.6 | % | 946 | 5,343 | 16,004 | — | — | 201,789 | 3.08 | % | |||||||||||||||||||||||
Multifamily Partners AC JV LP | 2 | 20.0 | % | 529 | 3,303 | 10,031 | — | — | 111,653 | (5) | 6.00 | % | ||||||||||||||||||||||
North Point II JV, LP | 1 | 55.0 | % | 265 | 1,703 | 4,814 | — | — | — | — | % | |||||||||||||||||||||||
MVP I, LLC | 1 | 25.0 | % | 313 | 2,837 | 8,683 | — | — | 103,000 | 3.24 | % | |||||||||||||||||||||||
Brandywine Apartments of Maryland, LLC | 1 | 28.7 | % | 305 | 518 | 2,255 | — | — | 21,758 | 3.40 | % | |||||||||||||||||||||||
Total Unconsolidated Real Estate Investments | 15 | 3,659 | $ | 24,206 | $ | 70,278 | $ | — | $ | — | $ | 834,139 | 3.88 | % |
(1) | NOI, outstanding indebtedness and disposition gains and other activity are presented at 100% ownership. |
(2) | NOI excludes property management fees as the Company serves as the property management company for all ventures except Brandywine Apartments of Maryland, LLC. |
(3) | Disposition gains and other activity is composed primarily of gains on disposition of unconsolidated real estate investments, of which the Company's portion is included in joint venture income as presented on Attachment 1 - Condensed Consolidated Operating Information. During the nine months ended September 30, 2019, there were no dispositions of unconsolidated real estate investments. The Company's portion of income from disposition gains and other activity for the three and nine months ended September 30, 2018 was $8,636, related to a disposition by the U.S. Fund. |
(4) | Represents the weighted average interest rate as of September 30, 2019. |
(5) | Borrowing is comprised of loans made by the equity investors in the venture in proportion to their equity interests. |
DEBT COMPOSITION AND MATURITIES | ||||||||||||||||||||
Average Interest Rate (1) | Principal Amortization Payments and Maturities (2) | |||||||||||||||||||
Debt Composition | Amount | Year | Secured notes amortization and maturities | Unsecured notes maturities | Total | |||||||||||||||
Secured notes | 2019 | $ | 66,861 | $ | — | $ | 66,861 | |||||||||||||
Fixed rate | $ | 546,082 | 3.8 | % | 2020 | 127,511 | 400,000 | 527,511 | ||||||||||||
Variable rate | 476,150 | 3.2 | % | 2021 | 37,148 | 550,000 | 587,148 | |||||||||||||
Subtotal, secured notes | 1,022,232 | 3.5 | % | 2022 | 9,918 | 550,000 | 559,918 | |||||||||||||
2023 | 10,739 | 600,000 | 610,739 | |||||||||||||||||
Unsecured notes | 2024 | 11,577 | 450,000 | 461,577 | ||||||||||||||||
Fixed rate | 5,850,000 | 3.7 | % | 2025 | 12,508 | 825,000 | 837,508 | |||||||||||||
Variable rate | 550,000 | 3.0 | % | 2026 | 13,545 | 775,000 | 788,545 | |||||||||||||
Subtotal, unsecured notes | 6,400,000 | 3.6 | % | 2027 | 200,080 | 400,000 | 600,080 | |||||||||||||
2028 | 20,607 | 450,000 | 470,607 | |||||||||||||||||
Variable rate facility (3) | — | — | Thereafter | 511,738 | 1,400,000 | 1,911,738 | ||||||||||||||
Total Debt | $ | 7,422,232 | 3.6 | % | $ | 1,022,232 | $ | 6,400,000 | $ | 7,422,232 |
SELECT DEBT METRICS | ||||||||||
Net Debt-to-Core EBITDAre (4) | 4.7x | Interest Coverage (4) | 7.4x | Unencumbered NOI (4) | 93% | Weighted avg years to maturity of total debt (2) | 9.1 |
DEBT COVENANT COMPLIANCE | ||||||||||
Unsecured Line of Credit Covenants | September 30, 2019 | Requirement | ||||||||
Total Outstanding Indebtedness to Capitalization Value (5) | 26.7 | % | < | 65% | ||||||
Combined EBITDA to Combined Debt Service | 6.27x | > | 1.50x | |||||||
Unsecured Indebtedness to Unencumbered Asset Value | 22.2 | % | < | 65% | ||||||
Secured Indebtedness to Capitalization Value (5) | 3.5 | % | < | 40% | ||||||
Unsecured Senior Notes Covenants (6) | September 30, 2019 | Requirement | ||||||||
Total Outstanding Indebtedness to Total Assets (7) | 31.9 | % | < | 65% | ||||||
Secured Indebtedness to Total Assets (7) | 4.3 | % | < | 40% | ||||||
Unencumbered Assets to Unsecured Indebtedness | 333.8 | % | > | 150% | ||||||
Consolidated Income Available for Debt Service to the Annual Service Charge | 6.94x | > | 1.50x |
(1) | Rates are as of September 30, 2019 and, for secured and unsecured notes, include costs of financing such as credit enhancement fees, trustees' fees, the impact of interest rate hedges and mark-to-market adjustments. |
(2) | Excludes the Company's unsecured credit facility and any associated issuance discount, mark-to-market discounts and deferred financing costs if applicable. |
(3) | Represents amounts outstanding at September 30, 2019 under the Company's $1.75 billion unsecured credit facility. |
(4) | See Attachment 13 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
(5) | Capitalization Value represents the Company’s Combined EBITDA for operating communities that the Company has owned for at least 12 months as of September 30, 2019, capitalized at a rate of 6% per annum, plus the book value of Development Communities and real estate communities acquired. For discussion of other defined terms, see "Debt Covenant Compliance" in Attachment 13 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
(6) | The information about the Company’s unsecured senior notes covenants shows compliance with selected covenants under the Company’s 1998 Indenture, under which debt securities are outstanding with maturity dates through 2047, subject to prepayment or redemption at the Company’s election. See “Debt Covenant Compliance” in Attachment 13 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. Different covenants apply to debt securities outstanding under the Company’s 2018 Indenture. |
(7) | Total Assets represents the sum of the Company's undepreciated real estate assets and other assets, excluding accounts receivable. See "Debt Covenant Compliance" in Attachment 13 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
TABLE 1 | |||||||||||||||||||||||||||||
Q3 2019 | Q3 2018 | Q3 2019 to Q3 2018 % Change | Q2 2019 | Q3 2019 to Q2 2019 % Change | YTD 2019 | YTD 2018 | YTD 2019 to YTD 2018 % Change | ||||||||||||||||||||||
Total revenue, excluding uncollectible lease revenue | $ | 463,482 | $ | 451,296 | 2.7 | % | $ | 459,453 | 0.9 | % | $ | 1,376,184 | $ | 1,336,030 | 3.0 | % | |||||||||||||
Uncollectible lease revenue | (2,249 | ) | (2,244 | ) | 0.2 | % | (2,498 | ) | (10.0 | )% | (6,658 | ) | (8,206 | ) | (18.9 | )% | |||||||||||||
Total revenue, including uncollectible lease revenue | 461,233 | 449,052 | 2.7 | % | 456,955 | 0.9 | % | 1,369,526 | 1,327,824 | 3.1 | % | ||||||||||||||||||
Rental revenue, excluding uncollectible lease revenue | 463,098 | 451,086 | 2.7 | % | 458,846 | 0.9 | % | 1,374,728 | 1,335,378 | 2.9 | % | ||||||||||||||||||
Uncollectible lease revenue | (2,249 | ) | (2,244 | ) | 0.2 | % | (2,498 | ) | (10.0 | )% | (6,658 | ) | (8,206 | ) | (18.9 | )% | |||||||||||||
Rental revenue, including uncollectible lease revenue | 460,849 | 448,842 | 2.7 | % | 456,348 | 1.0 | % | 1,368,070 | 1,327,172 | 3.1 | % | ||||||||||||||||||
Operating expenses, excluding uncollectible lease revenue | 134,208 | 128,830 | 4.2 | % | 130,688 | 2.7 | % | 390,884 | 380,171 | 2.8 | % | ||||||||||||||||||
Uncollectible lease revenue | 2,249 | 2,244 | 0.2 | % | 2,498 | (10.0 | )% | 6,658 | 8,206 | (18.9 | )% | ||||||||||||||||||
Operating expenses, including uncollectible lease revenue | $ | 136,457 | $ | 131,074 | 4.1 | % | $ | 133,186 | 2.5 | % | $ | 397,542 | $ | 388,377 | 2.4 | % | |||||||||||||
TABLE 2 | ||||||||||||||||
Q4 2018 | ||||||||||||||||
Established | Other Stabilized | Redevelopment | Development | |||||||||||||
Rental revenue, excluding uncollectible lease revenue | $ | 452,361 | $ | 67,772 | $ | 32,086 | $ | 2,282 | ||||||||
Uncollectible lease revenue | (2,012 | ) | (746 | ) | (147 | ) | (5 | ) | ||||||||
Rental revenue, including uncollectible lease revenue | 450,349 | 67,026 | 31,939 | 2,277 | ||||||||||||
Operating expenses, excluding uncollectible lease revenue | 124,523 | 21,612 | 9,738 | 1,165 | ||||||||||||
Uncollectible lease revenue | 2,012 | 746 | 147 | 5 | ||||||||||||
Operating expenses, including uncollectible lease revenue | $ | 126,535 | $ | 22,358 | $ | 9,885 | $ | 1,170 | ||||||||
• | Asset Densification Development Rights are when the Company develops additional apartment homes at existing stabilized operating communities the Company owns, and will be constructed on land currently associated with those operating communities. |
• | Conventional Development Rights are when the Company either has an option to acquire the land or enter into a leasehold interest, for which the Company is the buyer under a long-term conditional contract to purchase land, where the Company controls the land through a ground lease or owns the land to develop a new community. |
• | Public-Private Partnership Development Rights are when the Company has (i) an option to acquire the land, (ii) an option to enter into a leasehold interest or (iii) entered into a long-term conditional contract to purchase the land, where the Company is the designated developer in a public-private partnership with a local government entity. |
TABLE 3 | ||||||||
Q3 | YTD | |||||||
2019 | 2019 | |||||||
GAAP Gain | $ | 130,399 | $ | 167,385 | ||||
Accumulated Depreciation and Other | (71,242 | ) | (95,233 | ) | ||||
Economic Gain | $ | 59,157 | $ | 72,152 | ||||
TABLE 4 | ||||
Q3 | ||||
2019 | ||||
Net income | $ | 279,709 | ||
Interest expense, net, inclusive of loss on extinguishment of debt, net | 51,586 | |||
Income tax expense | 11,184 | |||
Depreciation expense | 165,463 | |||
EBITDA | $ | 507,942 | ||
Gain on sale of communities | (130,484 | ) | ||
Joint venture EBITDAre adjustments (1) | 3,916 | |||
EBITDAre | $ | 381,374 | ||
Gain on other real estate transactions | (73 | ) | ||
Lost NOI from casualty losses covered by business interruption insurance | 410 | |||
Business interruption insurance proceeds | (307 | ) | ||
Severance related costs | 895 | |||
Development pursuit write-offs and expensed transaction costs, net | 85 | |||
For-sale condominium marketing and administrative costs | 1,108 | |||
Legal settlements | (3,093 | ) | ||
Core EBITDAre | $ | 380,399 | ||
(1) Includes joint venture interest, taxes, depreciation, gain on dispositions of depreciated real estate and impairment losses, if applicable, included in net income. | ||||
TABLE 5 | ||||||||||||||||
Q3 | Q3 | YTD | YTD | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income attributable to common stockholders | $ | 279,677 | $ | 192,486 | $ | 618,324 | $ | 588,791 | ||||||||
Depreciation - real estate assets, including joint venture adjustments | 165,673 | 156,204 | 495,249 | 470,976 | ||||||||||||
Distributions to noncontrolling interests | 11 | 11 | 34 | 33 | ||||||||||||
Gain on sale of unconsolidated entities holding previously depreciated real estate | — | (8,636 | ) | — | (8,636 | ) | ||||||||||
Gain on sale of previously depreciated real estate | (130,484 | ) | (27,243 | ) | (165,849 | ) | (132,444 | ) | ||||||||
FFO attributable to common stockholders | 314,877 | 312,822 | 947,758 | 918,720 | ||||||||||||
Adjusting items: | ||||||||||||||||
Joint venture losses (1) | — | 307 | — | 314 | ||||||||||||
Joint venture promote (2) | — | — | — | (925 | ) | |||||||||||
Casualty gain, net on real estate (3) | — | (554 | ) | — | (612 | ) | ||||||||||
Business interruption insurance proceeds | (307 | ) | — | (914 | ) | — | ||||||||||
Lost NOI from casualty losses covered by business interruption insurance (4) | 410 | — | 410 | 1,730 | ||||||||||||
Loss on extinguishment of consolidated debt | 93 | 1,678 | 602 | 2,717 | ||||||||||||
Advocacy contributions | — | 843 | — | 1,449 | ||||||||||||
Severance related costs | 895 | 80 | 2,267 | 582 | ||||||||||||
Development pursuit write-offs and expensed transaction costs, net | 85 | (309 | ) | 1,689 | 261 | |||||||||||
For-sale condominium marketing and administrative costs | 1,108 | 339 | 2,526 | 497 | ||||||||||||
For-sale condominium imputed carry cost (5) | 1,724 | — | 2,230 | — | ||||||||||||
Gain on other real estate transactions | (73 | ) | (12 | ) | (374 | ) | (335 | ) | ||||||||
Legal settlements (6) | (3,093 | ) | — | (4,071 | ) | 367 | ||||||||||
Income tax expense (7) | 11,184 | — | 11,178 | — | ||||||||||||
Core FFO attributable to common stockholders | $ | 326,903 | $ | 315,194 | $ | 963,301 | $ | 924,765 | ||||||||
Average shares outstanding - diluted | 139,852,674 | 138,323,064 | 139,438,064 | 138,230,724 | ||||||||||||
Earnings per share - diluted | $ | 2.00 | $ | 1.39 | $ | 4.43 | $ | 4.26 | ||||||||
FFO per common share - diluted | $ | 2.25 | $ | 2.26 | $ | 6.80 | $ | 6.65 | ||||||||
Core FFO per common share - diluted | $ | 2.34 | $ | 2.28 | $ | 6.91 | $ | 6.69 | ||||||||
(1) Amounts for 2018 are primarily composed of (i) the Company's portion of yield maintenance charges incurred for the early repayment of debt associated with joint venture disposition activity and (ii) the write-off of asset management fee intangibles associated with the disposition of a community in the U.S. Fund. | ||||||||||||||||
(2) Represents the Company's promoted interest in AvalonBay Value Added Fund II, L.P. | ||||||||||||||||
(3) Amounts for 2018 consist primarily of legal settlement proceeds for construction defects at a community acquired as part of the Archstone acquisition. | ||||||||||||||||
(4) Amount for YTD 2018 is for the Maplewood casualty loss, which occurred in Q1 2017, and for which the Company recognized $3,495 in business interruption insurance proceeds in Q3 2017. | ||||||||||||||||
(5) Represents the imputed carry cost of the for-sale residential condominiums at The Park Loggia. The Company computes this adjustment by multiplying the Total Capital Cost of completed and unsold for-sale residential condominiums by the Company's weighted average unsecured debt rate. | ||||||||||||||||
(6) Amounts for 2019 include $3,126 in legal settlement proceeds related to a former Development Right. | ||||||||||||||||
(7) Amounts for 2019 consist of $6,645 related to GAAP to tax basis differences at The Park Loggia development and $4,539 related to the other activity the Company undertook through taxable REIT subsidiaries ("TRS"), including the disposition of two wholly-owned operating communities and expense for deferred tax obligations related to the Company's sustainability initiatives. | ||||||||||||||||
TABLE 6 | |||
Core EBITDAre | $ | 380,399 | |
Interest expense, net | $ | 51,493 | |
Interest Coverage | 7.4 times | ||
TABLE 7 | |||
Total debt principal (1) | $ | 7,422,232 | |
Cash and cash in escrow | (334,754 | ) | |
Net debt | $ | 7,087,478 | |
Core EBITDAre | $ | 380,399 | |
Core EBITDAre, annualized | $ | 1,521,596 | |
Net Debt-to-Core EBITDAre | 4.7 times | ||
(1) Balance at September 30, 2019 excludes $8,977 of debt discount and $34,133 of deferred financing costs as reflected in unsecured notes, net, and $14,501 of debt discount and $3,342 of deferred financing costs as reflected in notes payable on the Condensed Consolidated Balance Sheets. | |||
TABLE 8 | ||||||||||||||||||||||||
Q3 | Q3 | Q2 | Q1 | YTD | YTD | |||||||||||||||||||
2019 | 2018 | 2019 | 2019 | 2019 | 2018 | |||||||||||||||||||
Net income | $ | 279,709 | $ | 192,407 | $ | 168,305 | $ | 170,418 | $ | 618,432 | $ | 588,540 | ||||||||||||
Indirect operating expenses, net of corporate income | 20,195 | 19,742 | 23,018 | 19,722 | 62,935 | 58,377 | ||||||||||||||||||
Expensed transaction, development and other pursuit costs, net of recoveries | 175 | 523 | 1,766 | 622 | 2,562 | 2,212 | ||||||||||||||||||
Interest expense, net | 51,493 | 54,097 | 50,010 | 47,892 | 149,395 | 165,795 | ||||||||||||||||||
Loss on extinguishment of debt, net | 93 | 1,678 | 229 | 280 | 602 | 2,717 | ||||||||||||||||||
General and administrative expense | 12,769 | 14,744 | 18,965 | 13,706 | 45,440 | 44,384 | ||||||||||||||||||
Joint venture (income) loss | (1,643 | ) | (10,031 | ) | (197 | ) | 1,060 | (780 | ) | (12,560 | ) | |||||||||||||
Depreciation expense | 165,463 | 156,538 | 162,693 | 162,057 | 490,213 | 472,282 | ||||||||||||||||||
Income tax expense | 11,184 | 29 | — | (6 | ) | 11,178 | 87 | |||||||||||||||||
Casualty and impairment loss (gain), net | — | (554 | ) | — | — | — | (612 | ) | ||||||||||||||||
Gain on sale of communities | (130,484 | ) | (27,243 | ) | (20,530 | ) | (14,835 | ) | (165,849 | ) | (132,444 | ) | ||||||||||||
Gain on other real estate transactions | (73 | ) | (12 | ) | (34 | ) | (267 | ) | (374 | ) | (335 | ) | ||||||||||||
For-sale condominium marketing and administrative costs | 1,108 | 339 | 945 | 473 | 2,526 | 497 | ||||||||||||||||||
NOI from real estate assets sold or held for sale | (880 | ) | (17,876 | ) | (3,275 | ) | (4,446 | ) | (8,600 | ) | (61,623 | ) | ||||||||||||
NOI | $ | 409,109 | $ | 384,381 | $ | 401,895 | $ | 396,676 | $ | 1,207,680 | $ | 1,127,317 | ||||||||||||
Established: | ||||||||||||||||||||||||
New England | $ | 42,651 | $ | 41,591 | $ | 41,400 | $ | 41,311 | $ | 125,362 | $ | 121,028 | ||||||||||||
Metro NY/NJ | 72,476 | 72,131 | 73,212 | 71,843 | 217,531 | 211,560 | ||||||||||||||||||
Mid-Atlantic | 51,474 | 50,067 | 51,073 | 51,052 | 153,599 | 148,838 | ||||||||||||||||||
Pacific NW | 20,683 | 19,679 | 20,605 | 20,210 | 61,498 | 57,445 | ||||||||||||||||||
No. California | 68,000 | 66,362 | 67,384 | 68,239 | 203,623 | 197,308 | ||||||||||||||||||
So. California | 71,741 | 70,392 | 72,593 | 72,695 | 217,029 | 211,474 | ||||||||||||||||||
Total Established | 327,025 | 320,222 | 326,267 | 325,350 | 978,642 | 947,653 | ||||||||||||||||||
Other Stabilized | 51,187 | 41,537 | 49,540 | 47,843 | 148,570 | 114,171 | ||||||||||||||||||
Redevelopment | 23,106 | 22,256 | 22,587 | 22,040 | 67,733 | 65,653 | ||||||||||||||||||
Development | 7,791 | 366 | 3,501 | 1,443 | 12,735 | (160 | ) | |||||||||||||||||
NOI | $ | 409,109 | $ | 384,381 | $ | 401,895 | $ | 396,676 | $ | 1,207,680 | $ | 1,127,317 | ||||||||||||
TABLE 9 | ||||||||||||||||
Q3 | Q3 | YTD | YTD | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue from real estate assets sold or held for sale | $ | 1,972 | $ | 28,135 | $ | 15,837 | $ | 96,517 | ||||||||
Operating expenses from real estate assets sold or held for sale | (1,092 | ) | (10,259 | ) | (7,237 | ) | (34,894 | ) | ||||||||
NOI from real estate assets sold or held for sale | $ | 880 | $ | 17,876 | $ | 8,600 | $ | 61,623 | ||||||||
TABLE 10 | ||||||||||||||||
Q3 | Q3 | YTD | YTD | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Rental revenue (GAAP basis) | $ | 460,849 | $ | 448,842 | $ | 1,368,070 | $ | 1,327,172 | ||||||||
Concessions amortized | 228 | 629 | 616 | 3,411 | ||||||||||||
Concessions granted | (361 | ) | (107 | ) | (756 | ) | (901 | ) | ||||||||
Rental Revenue with Concessions | ||||||||||||||||
on a Cash Basis | $ | 460,716 | $ | 449,364 | $ | 1,367,930 | $ | 1,329,682 | ||||||||
% change -- GAAP revenue | 2.7 | % | 3.1 | % | ||||||||||||
% change -- cash revenue | 2.5 | % | 2.9 | % | ||||||||||||
TABLE 11 | ||||
Year to Date | ||||
NOI | ||||
NOI for Established Communities | $ | 978,642 | ||
NOI for Other Stabilized Communities | 148,570 | |||
NOI for Redevelopment Communities | 67,733 | |||
NOI for Development Communities | 12,735 | |||
NOI from real estate assets sold or held for sale | 8,600 | |||
Total NOI generated by real estate assets | 1,216,280 | |||
NOI on encumbered assets | 83,038 | |||
NOI on unencumbered assets | $ | 1,133,242 | ||
Unencumbered NOI | 93 | % | ||