Q2 2020 Results Compared to Q2 2019 | |||||||||
Per Share (1) | |||||||||
EPS | FFO | Core FFO | |||||||
Q2 2019 per share reported results | $ | 1.21 | $ | 2.24 | $ | 2.27 | |||
Established Community NOI (2) | (0.10 | ) | (0.10 | ) | (0.10 | ) | |||
Development and Other Stabilized Community NOI | 0.08 | 0.08 | 0.08 | ||||||
Capital markets and transaction activity | (0.03 | ) | (0.03 | ) | (0.03 | ) | |||
Joint venture income | (0.02 | ) | (0.02 | ) | (0.02 | ) | |||
Overhead and other | 0.03 | 0.03 | 0.03 | ||||||
Income tax benefit | 0.01 | 0.01 | — | ||||||
Gain on sale of real estate and depreciation expense | 0.03 | — | — | ||||||
Q2 2020 per share reported results | $ | 1.21 | $ | 2.21 | $ | 2.23 | |||
(1) For additional detail on reconciling items between EPS, FFO and Core FFO, see Attachment 13, table 3. | |||||||||
(2) Established Community uncollectible residential and retail lease revenue increased $0.10 over the prior year period. | |||||||||
YTD 2020 Results | |||||||||
Comparison to YTD 2019 | |||||||||
Per Share (1) | |||||||||
EPS | FFO | Core FFO | |||||||
YTD 2019 per share reported results | $ | 2.43 | $ | 4.55 | $ | 4.57 | |||
Established Community NOI (2) | (0.02 | ) | (0.02 | ) | (0.02 | ) | |||
Development and Other Stabilized Community NOI | 0.18 | 0.18 | 0.18 | ||||||
Capital markets and transaction activity | (0.13 | ) | (0.16 | ) | (0.10 | ) | |||
Joint venture income | (0.02 | ) | (0.02 | ) | (0.02 | ) | |||
Overhead and other | (0.05 | ) | (0.05 | ) | — | ||||
Income tax benefit | 0.01 | 0.01 | — | ||||||
Gain on sale of real estate and depreciation expense | 0.01 | — | — | ||||||
YTD 2020 per share reported results | $ | 2.41 | $ | 4.49 | $ | 4.61 | |||
(1) For additional detail on reconciling items between EPS, FFO and Core FFO, see Attachment 13, table 3. | |||||||||
(2) Established Community uncollectible residential and retail lease revenue increased $0.11 over the prior year period. | |||||||||
Established Communities Change in Rental Revenue | ||
Q2 2020 Compared to Q2 2019 | ||
Residential rental revenue | ||
Lease rates | 1.8 | % |
Concessions and other discounts | (0.2 | )% |
Economic occupancy | (1.2 | )% |
Other rental revenue | (0.6 | )% |
Uncollectible lease revenue | (2.0 | )% |
Total residential rental revenue | (2.2 | )% |
Retail rental revenue (1) | (0.7 | )% |
Total Established Communities change in rental revenue | (2.9 | )% |
(1) Consists primarily of the impact of uncollectible retail lease revenue. | ||
Q2 2020 Compared to Q2 2019 | ||||||||||||
Rental Revenue (1) | Opex (2) | NOI | % of NOI (3) | |||||||||
New England | 0.2 | % | (0.7 | )% | 0.7 | % | 14.7 | % | ||||
Metro NY/NJ | (5.2 | )% | (0.4 | )% | (7.5 | )% | 21.6 | % | ||||
Mid-Atlantic | (2.2 | )% | (2.0 | )% | (2.5 | )% | 15.4 | % | ||||
Pacific NW | (1.9 | )% | 5.7 | % | (4.8 | )% | 6.3 | % | ||||
No. California | (1.2 | )% | (3.8 | )% | (0.3 | )% | 20.6 | % | ||||
So. California | (5.1 | )% | (0.5 | )% | (7.0 | )% | 19.5 | % | ||||
Expansion Mkts | (1.0 | )% | (8.6 | )% | 4.6 | % | 1.9 | % | ||||
Total | (2.9 | )% | (1.1 | )% | (3.7 | )% | 100.0 | % | ||||
(1) See Attachment 4, Quarterly Rental Revenue and Occupancy Changes, for additional detail. | ||||||||||||
(2) See Attachment 7, Operating Expenses ("Opex"), for discussion of variances. | ||||||||||||
(3) Represents % of total NOI for Q2 2020, including amounts related to communities that have been sold or that are classified as held for sale. | ||||||||||||
Established Communities Change in Rental Revenue | ||
YTD 2020 Compared to YTD 2019 | ||
Residential rental revenue | ||
Lease rates | 2.2 | % |
Concessions and other discounts | — | % |
Economic occupancy | (0.4 | )% |
Other rental revenue | (0.3 | )% |
Uncollectible lease revenue | (1.1 | )% |
Total residential rental revenue | 0.4 | % |
Retail rental revenue (1) | (0.3 | )% |
Total Established Communities change in rental revenue | 0.1 | % |
(1) Consists primarily of the impact of uncollectible retail lease revenue. | ||
YTD 2020 Compared to YTD 2019 | ||||||||||||
Rental Revenue (1) | Opex (2) | NOI | % of NOI (3) | |||||||||
New England | 2.0 | % | 2.2 | % | 1.9 | % | 14.2 | % | ||||
Metro NY/NJ | (1.6 | )% | 1.0 | % | (2.9 | )% | 21.9 | % | ||||
Mid-Atlantic | 0.7 | % | (1.1 | )% | 1.4 | % | 15.6 | % | ||||
Pacific NW | 0.7 | % | 4.9 | % | (0.9 | )% | 6.3 | % | ||||
No. California | 0.9 | % | 0.9 | % | 0.9 | % | 20.3 | % | ||||
So. California | (1.0 | )% | 1.0 | % | (1.9 | )% | 19.9 | % | ||||
Expansion Mkts | 0.1 | % | (1.3 | )% | 1.0 | % | 1.8 | % | ||||
Total | 0.1 | % | 1.0 | % | (0.4 | )% | 100.0 | % | ||||
(1) See Attachment 6, YTD Rental Revenue and Occupancy Changes, for additional detail. | ||||||||||||
(2) See Attachment 7, Operating Expenses ("Opex"), for discussion of variances. | ||||||||||||
(3) Represents each region's % of total NOI for YTD 2020, including amounts related to communities that have been sold or that are classified as held for sale. | ||||||||||||
Established Communities Collections - Q2 2020 (1) | |||||
Collected Residential Revenue | |||||
At month end (2) | At July 28, 2020 (3) | ||||
April | 93.9 | % | 97.7 | % | |
May | 92.8 | % | 96.4 | % | |
June | 93.6 | % | 95.5 | % | |
(1) Excludes retail revenue, which was 1.4% of the Company's 2019 Established Communities' total revenue. The Company collected 56.5% of billed retail revenue for Q2 2020. | |||||
(2) The percentage of Collected Residential Revenue as of the last calendar day for each month. AVB collected an average of 95.4% of the month end AVB Residential Benchmark of 97.9% during Q2 2020. | |||||
(3) The percentage of Collected Residential Revenue as of July 28, 2020 for each month. Collected Residential Revenue for July 2020 as of July 28, 2020 was 93.3%, which is 95.5% of the AVB Residential Benchmark. | |||||
• | The Company issued $600,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of $593,430,000. The notes mature in January 2031 and were issued with a 2.45% coupon. The effective interest rate of the notes is 2.65%, including the impact of an interest rate hedge and offering costs. |
• | The Company repaid $300,000,000 principal amount of its variable rate unsecured notes in advance of the January 2021 scheduled maturity. |
• | The Company issued $700,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of $694,701,000. The notes mature in March 2030 and were issued with a 2.30% coupon. The effective interest rate of the notes is 2.68%, including the impact of an interest rate hedge and offering costs. |
• | The Company repaid (i) $400,000,000 principal amount of its 3.625% unsecured notes in advance of the October 2020 scheduled maturity and (ii) $250,000,000 principal amount of its 3.95% unsecured notes in advance of the January 2021 scheduled maturity. In conjunction with these repayments, the Company recognized a loss on debt extinguishment of $9,170,000 composed of prepayment penalties and the non-cash write-off of unamortized deferred financing costs. |
• | The Company obtained a $51,000,000 mortgage note with a maturity date of March 2027 with a contractual interest rate of 2.38%, in conjunction with the refinancing of $50,616,000 of secured indebtedness that had a contractual interest rate of 3.08%. |
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 |
Q2 | Q2 | YTD | YTD | |||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||
Revenue: | ||||||||||||||||||||||
Rental and other income | $ | 575,479 | $ | 576,149 | (0.1 | )% | $ | 1,176,123 | $ | 1,141,194 | 3.1 | % | ||||||||||
Management, development and other fees | 926 | 1,114 | (16.9 | )% | 1,933 | 2,252 | (14.2 | )% | ||||||||||||||
Total | 576,405 | 577,263 | (0.1 | )% | 1,178,056 | 1,143,446 | 3.0 | % | ||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Direct property operating expenses, excluding property taxes | 106,753 | 108,777 | (1.9 | )% | 214,934 | 211,362 | 1.7 | % | ||||||||||||||
Property taxes | 67,013 | 62,187 | 7.8 | % | 134,039 | 123,516 | 8.5 | % | ||||||||||||||
Property management and other indirect operating expenses | 24,337 | 24,147 | 0.8 | % | 48,149 | 45,016 | 7.0 | % | ||||||||||||||
Total operating expenses | 198,103 | 195,111 | 1.5 | % | 397,122 | 379,894 | 4.5 | % | ||||||||||||||
Interest expense, net | (53,399 | ) | (50,010 | ) | 6.8 | % | (109,313 | ) | (97,902 | ) | 11.7 | % | ||||||||||
Loss on extinguishment of debt, net | (268 | ) | (229 | ) | 17.0 | % | (9,438 | ) | (509 | ) | 1,754.2 | % | ||||||||||
General and administrative expense (1) | (15,573 | ) | (18,965 | ) | (17.9 | )% | (32,893 | ) | (32,671 | ) | 0.7 | % | ||||||||||
Joint venture income (loss) | 512 | 197 | 159.9 | % | 1,687 | (863 | ) | (295.5 | )% | |||||||||||||
Expensed transaction, development and other pursuit costs, net of recoveries | (388 | ) | (1,766 | ) | (78.0 | )% | (3,722 | ) | (2,388 | ) | 55.9 | % | ||||||||||
Depreciation expense | (176,249 | ) | (162,693 | ) | 8.3 | % | (354,160 | ) | (324,749 | ) | 9.1 | % | ||||||||||
Gain on sale of communities | 35,295 | 20,530 | 71.9 | % | 59,731 | 35,365 | 68.9 | % | ||||||||||||||
Gain on other real estate transactions | 156 | 34 | 358.8 | % | 199 | 300 | (33.7 | )% | ||||||||||||||
Gain on for-sale condominiums, net of marketing and administrative costs (2) | 1,348 | (945 | ) | N/A | 4,808 | (1,418 | ) | N/A | ||||||||||||||
Income before income taxes | 169,736 | 168,305 | 0.9 | % | 337,833 | 338,717 | (0.3 | )% | ||||||||||||||
Income tax benefit (2) | 1,133 | — | 100.0 | % | 1,042 | 6 | N/A | |||||||||||||||
Net income | 170,869 | 168,305 | 1.5 | % | 338,875 | 338,723 | — | % | ||||||||||||||
Net income attributable to noncontrolling interests | (41 | ) | (24 | ) | 70.8 | % | (76 | ) | (76 | ) | — | % | ||||||||||
Net income attributable to common stockholders | $ | 170,828 | $ | 168,281 | 1.5 | % | $ | 338,799 | $ | 338,647 | — | % | ||||||||||
Net income attributable to common stockholders per common share - basic | $ | 1.21 | $ | 1.21 | — | % | $ | 2.41 | $ | 2.43 | (0.8 | )% | ||||||||||
Net income attributable to common stockholders per common share - diluted | $ | 1.21 | $ | 1.21 | — | % | $ | 2.41 | $ | 2.43 | (0.8 | )% | ||||||||||
FFO (2) | $ | 311,103 | $ | 312,593 | (0.5 | )% | $ | 632,078 | $ | 632,881 | (0.1 | )% | ||||||||||
Per common share - diluted | $ | 2.21 | $ | 2.24 | (1.3 | )% | $ | 4.49 | $ | 4.55 | (1.3 | )% | ||||||||||
Core FFO (2) | $ | 313,259 | $ | 316,522 | (1.0 | )% | $ | 649,016 | $ | 636,398 | 2.0 | % | ||||||||||
Per common share - diluted | $ | 2.23 | $ | 2.27 | (1.8 | )% | $ | 4.61 | $ | 4.57 | 0.9 | % | ||||||||||
Dividends declared - common | $ | 224,169 | $ | 212,549 | 5.5 | % | $ | 448,248 | $ | 424,715 | 5.5 | % | ||||||||||
Per common share | $ | 1.59 | $ | 1.52 | 4.6 | % | $ | 3.18 | $ | 3.04 | 4.6 | % | ||||||||||
Average shares and participating securities outstanding - basic | 140,772,364 | 139,473,842 | 0.9 | % | 140,753,428 | 139,108,405 | 1.2 | % | ||||||||||||||
Average shares outstanding - diluted | 140,738,160 | 139,618,231 | 0.8 | % | 140,752,331 | 139,227,376 | 1.1 | % | ||||||||||||||
Total outstanding common shares and operating partnership units | 140,750,620 | 139,664,057 | 0.8 | % | 140,750,620 | 139,664,057 | 0.8 | % |
(1) | Amounts include severance related costs as detailed in Attachment 13 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 3. |
(2) | For additional detail, see Attachment 13 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 3. |
June 30 | December 31, | |||||||
2020 | 2019 | |||||||
Real estate | $ | 22,166,565 | $ | 21,796,900 | ||||
Less accumulated depreciation | (5,489,485 | ) | (5,164,398 | ) | ||||
Net operating real estate | 16,677,080 | 16,632,502 | ||||||
Construction in progress, including land | 1,272,171 | 1,303,751 | ||||||
Land held for development | 39,829 | — | ||||||
For-sale condominium inventory (1) | 311,236 | 457,809 | ||||||
Real estate assets held for sale, net | — | 38,927 | ||||||
Total real estate, net | 18,300,316 | 18,432,989 | ||||||
Cash and cash equivalents | 322,817 | 39,687 | ||||||
Cash in escrow | 92,877 | 87,927 | ||||||
Resident security deposits | 33,805 | 34,224 | ||||||
Investments in unconsolidated real estate entities | 176,352 | 165,806 | ||||||
Other assets (2) | 425,323 | 360,418 | ||||||
Total assets | $ | 19,351,490 | $ | 19,121,051 | ||||
Unsecured notes, net | $ | 6,698,438 | $ | 6,358,648 | ||||
Unsecured credit facility | — | — | ||||||
Notes payable, net | 931,772 | 937,642 | ||||||
Resident security deposits | 60,536 | 61,752 | ||||||
Other liabilities | 787,185 | 769,559 | ||||||
Total liabilities | 8,477,931 | 8,127,601 | ||||||
Redeemable noncontrolling interests | 2,754 | 3,252 | ||||||
Equity | 10,870,805 | 10,990,198 | ||||||
Total liabilities and equity | $ | 19,351,490 | $ | 19,121,051 |
Total | Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||||
Apartment | June | March | December | ||||||||||||
Homes | 30, 2020 | 31, 2020 | 31, 2019 | ||||||||||||
RENTAL REVENUE (2) | |||||||||||||||
Established | 69,930 | $ | 522,992 | $ | 547,514 | $ | 545,424 | ||||||||
Other Stabilized (3) | 5,397 | 34,481 | 35,114 | 32,164 | |||||||||||
Development/Redevelopment (4) | 7,536 | 16,651 | 15,749 | 10,649 | |||||||||||
Total Consolidated Communities | 82,863 | $ | 574,124 | $ | 598,377 | $ | 588,237 | ||||||||
OPERATING EXPENSE | |||||||||||||||
Established | $ | 155,340 | $ | 156,311 | $ | 153,469 | |||||||||
Other Stabilized (3) | 11,565 | 11,988 | 9,938 | ||||||||||||
Development/Redevelopment (4) | 6,618 | 6,380 | 4,539 | ||||||||||||
Total Consolidated Communities | $ | 173,523 | $ | 174,679 | $ | 167,946 | |||||||||
NOI (5) | |||||||||||||||
Established | $ | 368,191 | $ | 391,645 | $ | 392,561 | |||||||||
Other Stabilized (3) | 23,108 | 23,496 | 22,724 | ||||||||||||
Development/Redevelopment (4) | 10,074 | 9,394 | 6,113 | ||||||||||||
Total Consolidated Communities | $ | 401,373 | $ | 424,535 | $ | 421,398 | |||||||||
AVERAGE REVENUE PER OCCUPIED HOME (6) | |||||||||||||||
Established | $ | 2,629 | $ | 2,709 | $ | 2,707 | |||||||||
Other Stabilized (3) | $ | 2,268 | $ | 2,286 | $ | 2,280 | |||||||||
ECONOMIC OCCUPANCY (6) | |||||||||||||||
Established | 94.8 | % | 96.3 | % | 96.0 | % | |||||||||
Other Stabilized (3) | 93.6 | % | 94.6 | % | 94.5 | % | |||||||||
ESTABLISHED COMMUNITIES TURNOVER (7) | |||||||||||||||
Current year period / Prior year period | 53.7% / 56.3% | 39.5% / 41.4% | 40.4% / 42.4% | ||||||||||||
Current year period YTD / Prior year period YTD | 46.6% / 48.9% | 50.9% / 52.0% |
(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) | Results for these communities for quarters prior to January 1, 2020 may reflect community operations prior to stabilization, including periods of lease-up, such that occupancy levels are below what would be considered stabilized. |
(4) | The Company had no Redevelopment Communities for the periods presented. |
(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, 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 RENT CHANGE | ||||
Q2 2020 | ||||
Like-Term Lease Rent Change (5) | Like-Term Effective Rent Change (5) | |||
New England | 0.7% | (1.6)% | ||
Metro NY/NJ | 0.5% | (1.9)% | ||
Mid-Atlantic | 0.7% | (1.9)% | ||
Pacific NW | 2.0% | (1.1)% | ||
No. California | (2.2)% | (5.4)% | ||
So. California | (2.0)% | (5.1)% | ||
Expansion Markets | 1.2% | —% | ||
Total | (0.4)% | (3.1)% | ||
Apartment Homes | Average Rental Rates (2) | Economic Occupancy | Rental Revenue ($000s) | |||||||||||||||||||||||||||||||||||
% change excl. retail (3) | ||||||||||||||||||||||||||||||||||||||
Q2 20 | Q2 19 | % Change | Q2 20 | Q2 19 | % Change | Q2 20 | Q2 19 | % Change | ||||||||||||||||||||||||||||||
New England | ||||||||||||||||||||||||||||||||||||||
Boston, MA | 8,641 | $ | 2,846 | $ | 2,804 | 1.5 | % | 94.2 | % | 95.2 | % | (1.0 | )% | $ | 69,488 | $ | 69,172 | 0.5 | % | 0.6 | % | |||||||||||||||||
Fairfield, CT | 1,414 | 2,522 | 2,568 | (1.8 | )% | 96.4 | % | 96.1 | % | 0.3 | % | 10,314 | 10,469 | (1.5 | )% | (1.2 | )% | |||||||||||||||||||||
New England | 10,055 | 2,801 | 2,772 | 1.0 | % | 94.5 | % | 95.3 | % | (0.8 | )% | 79,802 | 79,641 | 0.2 | % | 0.4 | % | |||||||||||||||||||||
Metro NY/NJ | ||||||||||||||||||||||||||||||||||||||
New York City, NY | 3,788 | 3,618 | 3,771 | (4.1 | )% | 93.5 | % | 95.8 | % | (2.3 | )% | 38,443 | 41,059 | (6.4 | )% | (3.1 | )% | |||||||||||||||||||||
New York - Suburban | 4,079 | 3,061 | 3,207 | (4.6 | )% | 95.5 | % | 96.2 | % | (0.7 | )% | 35,754 | 37,756 | (5.3 | )% | (5.3 | )% | |||||||||||||||||||||
New Jersey | 5,401 | 2,563 | 2,637 | (2.8 | )% | 95.4 | % | 96.7 | % | (1.3 | )% | 39,630 | 41,304 | (4.1 | )% | (4.0 | )% | |||||||||||||||||||||
Metro NY/NJ | 13,268 | 3,018 | 3,136 | (3.8 | )% | 94.8 | % | 96.2 | % | (1.4 | )% | 113,827 | 120,119 | (5.2 | )% | (4.1 | )% | |||||||||||||||||||||
Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||
Washington Metro | 12,276 | 2,296 | 2,312 | (0.7 | )% | 94.5 | % | 96.2 | % | (1.7 | )% | 79,905 | 81,907 | (2.4 | )% | (1.8 | )% | |||||||||||||||||||||
Baltimore, MD | 1,562 | 1,776 | 1,746 | 1.7 | % | 95.7 | % | 97.4 | % | (1.7 | )% | 7,963 | 7,965 | 0.0 | % | 0.0 | % | |||||||||||||||||||||
Mid-Atlantic | 13,838 | 2,237 | 2,248 | (0.5 | )% | 94.6 | % | 96.3 | % | (1.7 | )% | 87,868 | 89,872 | (2.2 | )% | (1.7 | )% | |||||||||||||||||||||
Pacific Northwest | 4,116 | 2,338 | 2,361 | (1.0 | )% | 95.5 | % | 96.4 | % | (0.9 | )% | 27,570 | 28,110 | (1.9 | )% | (0.6 | )% | |||||||||||||||||||||
Northern California | ||||||||||||||||||||||||||||||||||||||
San Jose, CA | 3,840 | 3,182 | 3,173 | 0.3 | % | 95.6 | % | 96.5 | % | (0.9 | )% | 35,041 | 35,261 | (0.6 | )% | (0.3 | )% | |||||||||||||||||||||
Oakland-East Bay, CA | 3,847 | 2,563 | 2,597 | (1.3 | )% | 95.9 | % | 96.3 | % | (0.4 | )% | 28,352 | 28,853 | (1.7 | )% | (1.1 | )% | |||||||||||||||||||||
San Francisco, CA | 3,675 | 3,623 | 3,611 | 0.3 | % | 94.4 | % | 96.0 | % | (1.6 | )% | 37,722 | 38,215 | (1.3 | )% | (1.2 | )% | |||||||||||||||||||||
Northern California | 11,362 | 3,115 | 3,120 | (0.2 | )% | 95.2 | % | 96.2 | % | (1.0 | )% | 101,115 | 102,329 | (1.2 | )% | (0.9 | )% | |||||||||||||||||||||
Southern California | ||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | 11,492 | 2,335 | 2,475 | (5.7 | )% | 94.7 | % | 95.7 | % | (1.0 | )% | 76,223 | 81,679 | (6.7 | )% | (5.3 | )% | |||||||||||||||||||||
Orange County, CA | 2,821 | 2,207 | 2,211 | (0.2 | )% | 95.6 | % | 96.3 | % | (0.7 | )% | 17,851 | 18,008 | (0.9 | )% | (0.9 | )% | |||||||||||||||||||||
San Diego, CA | 2,066 | 2,189 | 2,190 | 0.0 | % | 94.9 | % | 95.7 | % | (0.8 | )% | 12,879 | 12,988 | (0.8 | )% | (0.8 | )% | |||||||||||||||||||||
Southern California | 16,379 | 2,295 | 2,393 | (4.1 | )% | 94.8 | % | 95.8 | % | (1.0 | )% | 106,953 | 112,675 | (5.1 | )% | (4.1 | )% | |||||||||||||||||||||
Expansion Markets | 912 | 2,310 | 2,291 | 0.8 | % | 92.7 | % | 94.5 | % | (1.8 | )% | 5,857 | 5,916 | (1.0 | )% | (0.9 | )% | |||||||||||||||||||||
Total Established | 69,930 | $ | 2,629 | $ | 2,674 | (1.7 | )% | 94.8 | % | 96.0 | % | (1.2 | )% | $ | 522,992 | $ | 538,662 | (2.9 | )% | (4) | (2.2 | )% |
(1) | Established Communities are communities with Stabilized Operations as of January 1, 2019 such that a comparison of Q2 2019 to Q2 2020 is meaningful. |
(2) | Reflects the effect of concessions amortized over the average lease term. |
(3) | Represents the change in rental revenue if the Company were to exclude rental revenue from retail activities. |
(4) | With concessions reflected on a cash basis, rental revenue from Established Communities decreased 4.7% from Q2 2019 to Q2 2020. See Attachment 13, table 8, for additional detail and a reconciliation. |
Apartment Homes | Average Rental Rates (2) | Economic Occupancy | Rental Revenue ($000s) | |||||||||||||||||||||||||||||||||||
% change excl. retail (3) | ||||||||||||||||||||||||||||||||||||||
Q2 20 | Q1 20 | % Change | Q2 20 | Q1 20 | % Change | Q2 20 | Q1 20 | % Change | ||||||||||||||||||||||||||||||
New England | ||||||||||||||||||||||||||||||||||||||
Boston, MA | 8,641 | $ | 2,846 | $ | 2,882 | (1.2 | )% | 94.2 | % | 95.3 | % | (1.1 | )% | $ | 69,488 | $ | 71,186 | (2.4 | )% | (2.2 | )% | |||||||||||||||||
Fairfield, CT | 1,414 | 2,522 | 2,582 | (2.3 | )% | 96.4 | % | 96.4 | % | — | % | 10,314 | 10,555 | (2.3 | )% | (2.4 | )% | |||||||||||||||||||||
New England | 10,055 | 2,801 | 2,840 | (1.4 | )% | 94.5 | % | 95.4 | % | (0.9 | )% | 79,802 | 81,741 | (2.4 | )% | (2.2 | )% | |||||||||||||||||||||
Metro NY/NJ | ||||||||||||||||||||||||||||||||||||||
New York City, NY | 3,788 | 3,618 | 3,832 | (5.6 | )% | 93.5 | % | 95.9 | % | (2.4 | )% | 38,443 | 41,783 | (8.0 | )% | (5.2 | )% | |||||||||||||||||||||
New York - Suburban | 4,079 | 3,061 | 3,202 | (4.4 | )% | 95.5 | % | 95.7 | % | (0.2 | )% | 35,754 | 37,495 | (4.6 | )% | (4.6 | )% | |||||||||||||||||||||
New Jersey | 5,401 | 2,563 | 2,636 | (2.8 | )% | 95.4 | % | 96.8 | % | (1.4 | )% | 39,630 | 41,368 | (4.2 | )% | (4.2 | )% | |||||||||||||||||||||
Metro NY/NJ | 13,268 | 3,018 | 3,152 | (4.3 | )% | 94.8 | % | 96.2 | % | (1.4 | )% | 113,827 | 120,646 | (5.7 | )% | (4.7 | )% | |||||||||||||||||||||
Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||
Washington Metro | 12,276 | 2,296 | 2,353 | (2.4 | )% | 94.5 | % | 96.4 | % | (1.9 | )% | 79,905 | 83,538 | (4.3 | )% | (3.8 | )% | |||||||||||||||||||||
Baltimore, MD | 1,562 | 1,776 | 1,795 | (1.1 | )% | 95.7 | % | 96.3 | % | (0.6 | )% | 7,963 | 8,100 | (1.7 | )% | (1.7 | )% | |||||||||||||||||||||
Mid-Atlantic | 13,838 | 2,237 | 2,290 | (2.3 | )% | 94.6 | % | 96.4 | % | (1.8 | )% | 87,868 | 91,638 | (4.1 | )% | (3.6 | )% | |||||||||||||||||||||
Pacific Northwest | 4,116 | 2,338 | 2,384 | (1.9 | )% | 95.5 | % | 97.2 | % | (1.7 | )% | 27,570 | 28,608 | (3.6 | )% | (2.3 | )% | |||||||||||||||||||||
Northern California | ||||||||||||||||||||||||||||||||||||||
San Jose, CA | 3,840 | 3,182 | 3,214 | (1.0 | )% | 95.6 | % | 96.9 | % | (1.3 | )% | 35,041 | 35,859 | (2.3 | )% | (2.0 | )% | |||||||||||||||||||||
Oakland-East Bay, CA | 3,847 | 2,563 | 2,606 | (1.7 | )% | 95.9 | % | 97.2 | % | (1.3 | )% | 28,352 | 29,223 | (3.0 | )% | (2.3 | )% | |||||||||||||||||||||
San Francisco, CA | 3,675 | 3,623 | 3,657 | (0.9 | )% | 94.4 | % | 97.1 | % | (2.7 | )% | 37,722 | 39,145 | (3.6 | )% | (3.9 | )% | |||||||||||||||||||||
Northern California | 11,362 | 3,115 | 3,152 | (1.2 | )% | 95.2 | % | 97.0 | % | (1.8 | )% | 101,115 | 104,227 | (3.0 | )% | (2.8 | )% | |||||||||||||||||||||
Southern California | ||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | 11,492 | 2,335 | 2,500 | (6.6 | )% | 94.7 | % | 96.3 | % | (1.6 | )% | 76,223 | 83,055 | (8.2 | )% | (6.9 | )% | |||||||||||||||||||||
Orange County, CA | 2,821 | 2,207 | 2,237 | (1.3 | )% | 95.6 | % | 96.4 | % | (0.8 | )% | 17,851 | 18,244 | (2.2 | )% | (2.7 | )% | |||||||||||||||||||||
San Diego, CA | 2,066 | 2,189 | 2,221 | (1.4 | )% | 94.9 | % | 97.5 | % | (2.6 | )% | 12,879 | 13,422 | (4.0 | )% | (4.0 | )% | |||||||||||||||||||||
Southern California | 16,379 | 2,295 | 2,420 | (5.2 | )% | 94.8 | % | 96.5 | % | (1.7 | )% | 106,953 | 114,721 | (6.8 | )% | (5.8 | )% | |||||||||||||||||||||
Expansion Markets | 912 | 2,310 | 2,304 | 0.3 | % | 92.7 | % | 94.1 | % | (1.4 | )% | 5,857 | 5,933 | (1.3 | )% | (1.2 | )% | |||||||||||||||||||||
Total Established | 69,930 | $ | 2,629 | $ | 2,709 | (3.0 | )% | 94.8 | % | 96.3 | % | (1.5 | )% | $ | 522,992 | $ | 547,514 | (4.5 | )% | (3.9 | )% |
(1) | Established Communities are communities with Stabilized Operations as of January 1, 2019. |
(2) | Reflects the effect of concessions amortized over the average lease term. |
(3) | Represents the change in rental revenue if the Company were to exclude rental revenue from retail activities. |
Apartment Homes | Average Rental Rates (2) | Economic Occupancy | Rental Revenue ($000's) | |||||||||||||||||||||||||||||||||||
Year to Date 2020 | Year to Date 2019 | % Change | Year to Date 2020 | Year to Date 2019 | % Change | Year to Date 2020 | Year to Date 2019 | % Change | % change excl. retail (3) | |||||||||||||||||||||||||||||
New England | ||||||||||||||||||||||||||||||||||||||
Boston, MA | 8,641 | $ | 2,864 | $ | 2,790 | 2.7 | % | 94.7 | % | 95.1 | % | (0.4 | )% | $ | 140,674 | $ | 137,517 | 2.3 | % | 2.4 | % | |||||||||||||||||
Fairfield, CT | 1,414 | 2,552 | 2,557 | (0.2 | )% | 96.4 | % | 96.1 | % | 0.3 | % | 20,868 | 20,852 | 0.1 | % | 0.4 | % | |||||||||||||||||||||
New England | 10,055 | 2,821 | 2,758 | 2.3 | % | 94.9 | % | 95.2 | % | (0.3 | )% | 161,542 | 158,369 | 2.0 | % | 2.1 | % | |||||||||||||||||||||
Metro NY/NJ | ||||||||||||||||||||||||||||||||||||||
New York City, NY | 3,788 | 3,727 | 3,759 | (0.9 | )% | 94.7 | % | 95.6 | % | (0.9 | )% | 80,225 | 81,655 | (1.8 | )% | 0.1 | % | |||||||||||||||||||||
New York - Suburban | 4,079 | 3,132 | 3,188 | (1.8 | )% | 95.6 | % | 95.9 | % | (0.3 | )% | 73,250 | 74,792 | (2.1 | )% | (2.1 | )% | |||||||||||||||||||||
New Jersey | 5,401 | 2,600 | 2,613 | (0.5 | )% | 96.1 | % | 96.7 | % | (0.6 | )% | 80,997 | 81,904 | (1.1 | )% | (1.0 | )% | |||||||||||||||||||||
Metro NY/NJ | 13,268 | 3,085 | 3,116 | (1.0 | )% | 95.5 | % | 96.1 | % | (0.6 | )% | 234,472 | 238,351 | (1.6 | )% | (1.0 | )% | |||||||||||||||||||||
Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||
Washington Metro | 12,276 | 2,325 | 2,292 | 1.4 | % | 95.5 | % | 96.2 | % | (0.7 | )% | 163,444 | 162,381 | 0.7 | % | 0.9 | % | |||||||||||||||||||||
Baltimore, MD | 1,562 | 1,785 | 1,745 | 2.3 | % | 96.0 | % | 96.6 | % | (0.6 | )% | 16,063 | 15,800 | 1.7 | % | 1.7 | % | |||||||||||||||||||||
Mid-Atlantic | 13,838 | 2,264 | 2,232 | 1.4 | % | 95.5 | % | 96.2 | % | (0.7 | )% | 179,507 | 178,181 | 0.7 | % | 1.0 | % | |||||||||||||||||||||
Pacific Northwest | 4,116 | 2,361 | 2,343 | 0.8 | % | 96.3 | % | 96.4 | % | (0.1 | )% | 56,178 | 55,807 | 0.7 | % | 1.4 | % | |||||||||||||||||||||
Northern California | ||||||||||||||||||||||||||||||||||||||
San Jose, CA | 3,840 | 3,198 | 3,148 | 1.6 | % | 96.2 | % | 96.5 | % | (0.3 | )% | 70,900 | 69,999 | 1.3 | % | 1.4 | % | |||||||||||||||||||||
Oakland-East Bay, CA | 3,847 | 2,585 | 2,588 | (0.1 | )% | 96.5 | % | 96.3 | % | 0.2 | % | 57,575 | 57,519 | 0.1 | % | 0.4 | % | |||||||||||||||||||||
San Francisco, CA | 3,675 | 3,640 | 3,588 | 1.4 | % | 95.8 | % | 96.0 | % | (0.2 | )% | 76,867 | 75,955 | 1.2 | % | 1.3 | % | |||||||||||||||||||||
Northern California | 11,362 | 3,133 | 3,100 | 1.1 | % | 96.1 | % | 96.3 | % | (0.2 | )% | 205,342 | 203,473 | 0.9 | % | 1.1 | % | |||||||||||||||||||||
Southern California | ||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | 11,492 | 2,419 | 2,461 | (1.7 | )% | 95.5 | % | 95.6 | % | (0.1 | )% | 159,278 | 162,238 | (1.8 | )% | (1.2 | )% | |||||||||||||||||||||
Orange County, CA | 2,821 | 2,222 | 2,202 | 0.9 | % | 96.0 | % | 96.5 | % | (0.5 | )% | 36,096 | 35,936 | 0.4 | % | 0.8 | % | |||||||||||||||||||||
San Diego, CA | 2,066 | 2,205 | 2,183 | 1.0 | % | 96.2 | % | 95.4 | % | 0.8 | % | 26,301 | 25,830 | 1.8 | % | 1.9 | % | |||||||||||||||||||||
Southern California | 16,379 | 2,358 | 2,381 | (1.0 | )% | 95.7 | % | 95.7 | % | 0.0 | % | 221,675 | 224,004 | (1.0 | )% | (0.5 | )% | |||||||||||||||||||||
Expansion Markets | 912 | 2,307 | 2,270 | 1.6 | % | 93.4 | % | 94.9 | % | (1.5 | )% | 11,790 | 11,781 | 0.1 | % | 0.0 | % | |||||||||||||||||||||
Total Established | 69,930 | $ | 2,669 | $ | 2,658 | 0.4 | % | 95.6 | % | 95.9 | % | (0.3 | )% | $ | 1,070,506 | $ | 1,069,966 | 0.1 | % | (4) | 0.4 | % |
(1) | Established Communities are communities with Stabilized Operations as of January 1, 2019 such that a comparison of year to date 2019 to year to date 2020 is meaningful. |
(2) | Reflects the effect of concessions amortized over the average lease term. |
(3) | Represents the change in rental revenue if the Company were to exclude rental revenue from retail activities. |
(4) | With concessions reflected on a cash basis, rental revenue from Established Communities decreased 0.9% from YTD 2019 to YTD 2020. See Attachment 13, table 8, for additional detail and a reconciliation. |
Q2 2020 | Q2 2019 | % Change | Q2 2020 % of Total Opex | Year to Date 2020 | Year to Date 2019 | % Change | Year to Date 2020 % of Total Opex | |||||||||||||||||||||
Property taxes (2) | $ | 59,911 | $ | 57,546 | 4.1 | % | 38.6 | % | $ | 119,667 | $ | 114,270 | 4.7 | % | 38.4 | % | ||||||||||||
Payroll (3) | 34,218 | 35,605 | (3.9 | )% | 22.0 | % | 70,658 | 70,396 | 0.4 | % | 22.7 | % | ||||||||||||||||
Repairs & maintenance (4) | 26,295 | 28,343 | (7.2 | )% | 16.9 | % | 49,685 | 51,441 | (3.4 | )% | 15.9 | % | ||||||||||||||||
Utilities (5) | 12,876 | 13,481 | (4.5 | )% | 8.3 | % | 27,713 | 28,904 | (4.1 | )% | 8.9 | % | ||||||||||||||||
Office operations (6) | 12,710 | 12,434 | 2.2 | % | 8.2 | % | 25,663 | 24,499 | 4.8 | % | 8.2 | % | ||||||||||||||||
Insurance | 6,168 | 6,343 | (2.8 | )% | 4.0 | % | 12,398 | 12,641 | (1.9 | )% | 4.0 | % | ||||||||||||||||
Marketing (7) | 3,162 | 3,336 | (5.2 | )% | 2.0 | % | 5,867 | 6,430 | (8.8 | )% | 1.9 | % | ||||||||||||||||
Total Established Communities Operating Expenses | $ | 155,340 | $ | 157,088 | (1.1 | )% | 100.0 | % | $ | 311,651 | $ | 308,581 | 1.0 | % | 100.0 | % |
(1) | Operating expenses for Established Communities exclude indirect costs for corporate-level property management and other support-related expenses. |
(2) | Property taxes increased for the three and six months ended June 30, 2020 over the prior year periods primarily due to increased assessments and rates across the portfolio, led by New England, the Pacific Northwest and Mid-Atlantic. The increase for the six months ended June 30, 2020 is partially offset by successful appeals in the prior year period in excess of those in the current year period. |
(3) | Payroll costs decreased for the three months ended June 30, 2020 from the prior year period due to decreased benefits and incentive compensation costs, as well as a reduction in the number of on-site leasing and management associates. Payroll costs increased for the six months ended June 30, 2020 over the prior year period primarily due to merit increases in associate compensation, partially offset by decreased incentive compensation and a reduction in the number of on-site leasing and management associates. |
(4) | Repairs and maintenance decreased for the three and six months ended June 30, 2020 from the prior year periods primarily due to the timing of repairs and maintenance projects canceled or delayed due to COVID-19, partially offset by an increase in COVID-19 related costs for personal protective equipment and cleaning. |
(5) | Utilities represents aggregate utility costs, net of resident reimbursements. The decreases for the three and six months ended June 30, 2020 from the prior year periods are primarily due to decreases in gas and electric consumption due to warmer weather and closed amenities, partially offset by an increase in costs for water and sewer. The decrease for the six months ended June 30, 2020 is also partially offset by increased trash costs. |
(6) | Office operations includes administrative costs, land lease expense and association and license fees. The increases for the three and six months ended June 30, 2020 over the prior year periods are primarily due to increased legal costs, partially offset by decreases in associate recognition and audit fees. |
(7) | Marketing costs decreased for the three and six months ended June 30, 2020 from the prior year periods primarily due to decreased customer service incentives, call center costs related to centralized lead management and signage, partially offset by increased internet advertising costs. |
YTD 2020 Maintenance Expensed Per Home | Categorization of YTD 2020 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 2020 Additional Capitalized Value | NOI Enhancing Per Home (6) | Asset Preservation Per Home | |||||||||||||||||||||||||||||
Established Communities | 69,930 | $ | 56 | $ | 1,155 | $ | 1,211 | $ | 14,862 | (7) | $ | 14,880 | $ | 34,027 | $ | 63,769 | $ | 213 | $ | 487 | |||||||||||||||||||
Other Stabilized Communities | 5,397 | 37 | 1,077 | 1,114 | 3,886 | (8) | 1,762 | 366 | 6,014 | $ | 326 | $ | 68 | ||||||||||||||||||||||||||
Development/Redevelopment Communities (9) | 7,536 | 1 | 355 | 356 | 244,299 | — | — | 244,299 | — | — | |||||||||||||||||||||||||||||
Dispositions (10) | — | — | — | — | (168,276 | ) | — | — | (168,276 | ) | — | — | |||||||||||||||||||||||||||
Total | 82,863 | $ | 50 | $ | 1,077 | $ | 1,127 | $ | 94,771 | $ | 16,642 | $ | 34,393 | $ | 145,806 | 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 $153 in rebates received during the six months ended June 30, 2020, primarily related to NOI Enhancing Capex incurred during 2019. |
(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 $803 and $7, respectively, related to retail space. |
(7) | Consists primarily of redevelopment spend at communities maintaining stabilized occupancy during the redevelopment. |
(8) | Represents acquired communities, including those from joint venture partners, coupled with commitment close-outs and construction true-ups on recently constructed communities. |
(9) | Represents communities that were under construction/reconstruction during the period, including communities where construction/reconstruction has been completed. The Company had no Redevelopment Communities for the six months ended June 30, 2020. |
(10) | Includes the sale of condominiums at The Park Loggia. |
Other Capitalized Costs | ||||||
Interest | Overhead | |||||
Q3 2019 | $ | 15,443 | $ | 12,538 | ||
Q4 2019 | $ | 12,664 | $ | 11,250 | ||
Q1 2020 | $ | 11,498 | $ | 13,433 | ||
Q2 2020 | $ | 11,019 | $ | 11,050 | ||
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 July 10, 2020 | Q2 '20 | |||||||||||||||||||||||||
Communities Under Construction: | |||||||||||||||||||||||||||||||||||
1. | Avalon Public Market | Emeryville, CA | 289 | $ | 175 | Q4 2016 | Q3 2019 | Q3 2020 | Q4 2020 | $ | 3,525 | 89 | % | 75 | % | 71 | % | 63 | % | ||||||||||||||||
2. | Avalon Yonkers | Yonkers, NY | 590 | 196 | Q4 2017 | Q3 2019 | Q2 2021 | Q4 2021 | 2,880 | 43 | % | 44 | % | 38 | % | 33 | % | ||||||||||||||||||
3. | AVA Hollywood (1) | Hollywood, CA | 695 | 375 | Q4 2016 | Q4 2019 | Q1 2021 | Q3 2021 | 3,415 | 56 | % | 34 | % | 31 | % | 25 | % | ||||||||||||||||||
4. | Avalon Towson | Towson, MD | 371 | 114 | Q4 2017 | Q1 2020 | Q4 2020 | Q2 2021 | 2,065 | 44 | % | 15 | % | 12 | % | 7 | % | ||||||||||||||||||
5. | Avalon Walnut Creek II | Walnut Creek, CA | 200 | 113 | Q4 2017 | Q3 2020 | Q4 2020 | Q2 2021 | 3,285 | 25 | % | 26 | % | — | — | ||||||||||||||||||||
6. | Avalon Doral | Doral, FL | 350 | 116 | Q2 2018 | Q3 2020 | Q4 2020 | Q3 2021 | 2,275 | 16 | % | 4 | % | 1 | % | — | |||||||||||||||||||
7. | Avalon 555 President | Baltimore, MD | 400 | 139 | Q3 2018 | Q3 2020 | Q3 2021 | Q4 2021 | 2,615 | — | — | — | — | ||||||||||||||||||||||
8. | Avalon Old Bridge | Old Bridge, NJ | 252 | 72 | Q3 2018 | Q3 2020 | Q2 2021 | Q3 2021 | 2,355 | — | — | — | — | ||||||||||||||||||||||
9. | Avalon Newcastle Commons II | Newcastle, WA | 293 | 107 | Q4 2018 | Q4 2020 | Q3 2021 | Q1 2022 | 2,460 | — | — | — | — | ||||||||||||||||||||||
10. | Twinbrook Station | Rockville, MD | 238 | 66 | Q4 2018 | Q4 2020 | Q2 2021 | Q4 2021 | 1,710 | — | — | — | — | ||||||||||||||||||||||
11. | Avalon Harrison (1) | Harrison, NY | 143 | 77 | Q4 2018 | Q2 2021 | Q2 2022 | Q3 2022 | 3,780 | — | — | — | — | ||||||||||||||||||||||
12. | Avalon Brea Place | Brea, CA | 653 | 290 | Q2 2019 | Q1 2021 | Q2 2022 | Q3 2022 | 2,785 | — | — | — | — | ||||||||||||||||||||||
13. | Avalon Foundry Row | Owings Mills, MD | 437 | 100 | Q2 2019 | Q1 2021 | Q1 2022 | Q3 2022 | 1,805 | — | — | — | — | ||||||||||||||||||||||
14. | Avalon Marlborough II | Marlborough, MA | 123 | 42 | Q2 2019 | Q3 2020 | Q4 2020 | Q1 2021 | 2,610 | 15 | % | 28 | % | 5 | % | — | |||||||||||||||||||
15. | Avalon Acton II | Acton, MA | 86 | 31 | Q4 2019 | Q3 2020 | Q1 2021 | Q1 2021 | 2,610 | — | — | — | — | ||||||||||||||||||||||
16. | Avalon Woburn | Woburn, MA | 350 | 121 | Q4 2019 | Q3 2021 | Q2 2022 | Q3 2022 | 2,610 | — | — | — | — | ||||||||||||||||||||||
17. | AVA RiNo | Denver, CO | 246 | 87 | Q4 2019 | Q1 2022 | Q2 2022 | Q4 2022 | 2,230 | — | — | — | — | ||||||||||||||||||||||
18. | Avalon Monrovia | Monrovia, CA | 154 | 68 | Q4 2019 | Q1 2021 | Q3 2021 | Q4 2021 | 3,010 | — | — | — | — | ||||||||||||||||||||||
19. | Avalon Alderwood Mall (2) | Lynnwood, WA | 328 | 110 | Q4 2019 | Q4 2021 | Q2 2022 | Q4 2022 | 2,295 | — | — | — | — | ||||||||||||||||||||||
Total / Weighted Average Under Construction | 6,198 | $ | 2,399 | $ | 2,655 | ||||||||||||||||||||||||||||||
Total Weighted Average Projected NOI as a % of Total Capital Cost | 5.7% | ||||||||||||||||||||||||||||||||||
Asset Cost Basis (millions) (3): | |||||||||||||||||||||||||||||||||||
Total Capital Cost, under construction and completed | $ | 2,645 | |||||||||||||||||||||||||||||||||
Total Capital Cost, disbursed to date | (1,888 | ) | |||||||||||||||||||||||||||||||||
Total Capital Cost, remaining to invest | $ | 757 |
(1) | Developments containing at least 10,000 square feet of retail space include AVA Hollywood (19,000 sf) and Avalon Harrison (27,000 sf). |
(2) | The Company is developing this project through an unconsolidated joint venture, in which the Company owns a 50.0% interest. Total Capital Cost is for the venture and total weighted average Projected NOI as a percent of Total Capital Cost excludes this venture. |
(3) | Amounts reflect Development Communities in joint ventures at share, and include the communities presented and three additional communities with 752 apartment homes representing $300 million in Total Capital Costs which have completed construction but not yet achieved Stabilized Operations for the full quarter. Q2 2020 NOI for these communities was $5 million. |
DEVELOPMENT RIGHTS |
Estimated | Total Capital | |||||||||
# of Rights | Number | Cost | ||||||||
of Homes | (millions) | |||||||||
Development Rights as of 12/31/2019 | 27 | 9,587 | $ | 4,217 | ||||||
Q1 2020 | ||||||||||
Q1 Additions | 2 | 420 | $ | 137 | ||||||
Q1 Construction starts | — | — | — | |||||||
Q1 Adjustments to existing Development Rights | (1 | ) | (287 | ) | (267 | ) | ||||
Development Rights as of 3/31/2020 | 28 | 9,720 | $ | 4,087 | ||||||
Q2 2020 | ||||||||||
Q2 Additions | — | — | $ | — | ||||||
Q2 Construction starts | — | — | — | |||||||
Q2 Adjustments to existing Development Rights | — | 66 | 115 | |||||||
Development Rights as of 6/30/2020 | 28 | 9,786 | $ | 4,202 | ||||||
Current Development Rights by Region as of June 30, 2020 | ||||||||||
New England | 3 | 394 | $ | 156 | ||||||
Metro NY/NJ | 13 | 5,366 | 2,246 | |||||||
Mid-Atlantic | — | — | — | |||||||
Pacific Northwest | 3 | 1,121 | 441 | |||||||
Northern California | 4 | 1,198 | 661 | |||||||
Southern California | 1 | 475 | 278 | |||||||
Southeast Florida | 1 | 254 | 95 | |||||||
Denver, CO | 3 | 978 | 325 | |||||||
28 | 9,786 | $ | 4,202 | |||||||
Current Development Rights by Classification as of June 30, 2020 | ||||||||||
Conventional | 22 | 6,631 | $ | 2,384 | ||||||
Asset Densification | 4 | 1,745 | 860 | |||||||
Public-Private Partnership | 2 | 1,410 | 958 | |||||||
28 | 9,786 | $ | 4,202 |
Company | Number of | NOI (2)(3) | Debt | |||||||||||||||||||||||
Unconsolidated Real Estate | Number of | Ownership | Apartment | Q2 | YTD | Principal | Interest | |||||||||||||||||||
Investments (1) | Communities | Percentage | Homes | 2020 | 2020 | Amount (2) | Rate (4) | |||||||||||||||||||
NYTA MF Investors LLC | 5 | 20.0 | % | 1,301 | $ | 9,561 | $ | 20,093 | $ | 395,939 | 3.88 | % | ||||||||||||||
Archstone Multifamily Partners AC LP | 4 | 28.6 | % | 741 | 3,561 | 7,465 | 149,059 | 3.58 | % | |||||||||||||||||
Multifamily Partners AC JV LP | 2 | 20.0 | % | 529 | 2,835 | 6,315 | 111,653 | (5) | 6.00 | % | ||||||||||||||||
MVP I, LLC | 1 | 25.0 | % | 313 | 2,745 | 5,748 | 103,000 | 3.24 | % | |||||||||||||||||
Brandywine Apartments of Maryland, LLC | 1 | 28.7 | % | 305 | 1,277 | 2,397 | 21,310 | 3.40 | % | |||||||||||||||||
Total Unconsolidated Real Estate Investments | 13 | 3,189 | $ | 19,979 | $ | 42,018 | $ | 780,961 | 4.03 | % |
(1) | Excludes development joint ventures. |
(2) | NOI and outstanding indebtedness are presented at 100% ownership. |
(3) | NOI excludes property management fees as the Company serves as the property management company for all ventures except Brandywine Apartments of Maryland, LLC. |
(4) | Represents the weighted average interest rate as of June 30, 2020. |
(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 | 2020 | $ | 70,660 | $ | — | $ | 70,660 | |||||||||||||
Fixed rate | $ | 478,070 | 3.8 | % | 2021 | 37,148 | — | 37,148 | ||||||||||||
Variable rate | 471,450 | 1.7 | % | 2022 | 9,918 | 550,000 | 559,918 | |||||||||||||
Subtotal, secured notes | 949,520 | 2.7 | % | 2023 | 10,739 | 600,000 | 610,739 | |||||||||||||
2024 | 11,577 | 450,000 | 461,577 | |||||||||||||||||
Unsecured notes | 2025 | 12,508 | 825,000 | 837,508 | ||||||||||||||||
Fixed rate | 6,500,000 | 3.5 | % | 2026 | 13,545 | 775,000 | 788,545 | |||||||||||||
Variable rate | 250,000 | 2.0 | % | 2027 | 251,080 | 400,000 | 651,080 | |||||||||||||
Subtotal, unsecured notes | 6,750,000 | 3.4 | % | 2028 | 20,607 | 450,000 | 470,607 | |||||||||||||
2029 | 77,992 | 450,000 | 527,992 | |||||||||||||||||
Variable rate facility (3) | — | — | % | Thereafter | 433,746 | 2,250,000 | 2,683,746 | |||||||||||||
Total Debt | $ | 7,699,520 | 3.3 | % | $ | 949,520 | $ | 6,750,000 | $ | 7,699,520 |
SELECT DEBT METRICS | ||||||||||
Net Debt-to-Core EBITDAre (4) | 4.9x | Interest Coverage (4) | 6.9x | Unencumbered NOI (4) | 94% | Weighted avg years to maturity of total debt (2) | 9.7 |
DEBT COVENANT COMPLIANCE | ||||||||||
Unsecured Line of Credit Covenants | June 30, 2020 | Requirement | ||||||||
Total Outstanding Indebtedness to Capitalization Value (5) | 28.9 | % | < | 65% | ||||||
Combined EBITDA to Combined Debt Service | 6.16x | > | 1.50x | |||||||
Unsecured Indebtedness to Unencumbered Asset Value | 26.8 | % | < | 65% | ||||||
Secured Indebtedness to Capitalization Value (5) | 3.8 | % | < | 40% | ||||||
Unsecured Senior Notes Covenants (6) | June 30, 2020 | Requirement | ||||||||
Total Outstanding Indebtedness to Total Assets (7) | 32.2 | % | < | 65% | ||||||
Secured Indebtedness to Total Assets (7) | 3.9 | % | < | 40% | ||||||
Unencumbered Assets to Unsecured Indebtedness | 327.1 | % | > | 150% | ||||||
Consolidated Income Available for Debt Service to the Annual Service Charge | 6.86x | > | 1.50x |
(1) | Rates are as of June 30, 2020 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 June 30, 2020 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 June 30, 2020, 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. |
• | Asset Densification Development Rights are when the Company develops additional apartment homes at existing stabilized operating communities the Company owns 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 1 | ||||||||
Q2 2020 | YTD 2020 | |||||||
GAAP Gain | $ | 35,297 | $ | 59,710 | ||||
Accumulated Depreciation and Other | (13,570 | ) | (23,055 | ) | ||||
Economic Gain | $ | 21,727 | $ | 36,655 | ||||
TABLE 2 | ||||
Q2 | ||||
2020 | ||||
Net income | $ | 170,869 | ||
Interest expense, net, inclusive of loss on extinguishment of debt, net | 53,667 | |||
Income tax benefit | (1,133 | ) | ||
Depreciation expense | 176,249 | |||
EBITDA | $ | 399,652 | ||
Gain on sale of communities | (35,295 | ) | ||
Joint venture EBITDAre adjustments (1) | 3,424 | |||
EBITDAre | $ | 367,781 | ||
Gain on other real estate transactions | (156 | ) | ||
Lost NOI from casualty losses covered by business interruption insurance | 48 | |||
Business interruption insurance proceeds | (103 | ) | ||
Advocacy contributions | 1,465 | |||
Severance related costs | 89 | |||
Development pursuit write-offs and expensed transaction costs, net | 269 | |||
Gain on for-sale condominiums | (2,544 | ) | ||
For-sale condominium marketing and administrative costs | 1,196 | |||
Legal settlements | (67 | ) | ||
Core EBITDAre | $ | 367,978 | ||
(1) Includes joint venture interest, taxes, depreciation, gain on dispositions of depreciated real estate and impairment losses, if applicable, included in net income. | ||||
TABLE 3 | ||||||||||||||||
Q2 | Q2 | YTD | YTD | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income attributable to common stockholders | $ | 170,828 | $ | 168,281 | $ | 338,799 | $ | 338,647 | ||||||||
Depreciation - real estate assets, including joint venture adjustments | 175,558 | 164,830 | 352,986 | 329,576 | ||||||||||||
Distributions to noncontrolling interests | 12 | 12 | 24 | 23 | ||||||||||||
Gain on sale of previously depreciated real estate | (35,295 | ) | (20,530 | ) | (59,731 | ) | (35,365 | ) | ||||||||
FFO attributable to common stockholders | 311,103 | 312,593 | 632,078 | 632,881 | ||||||||||||
Adjusting items: | ||||||||||||||||
Business interruption insurance proceeds | (103 | ) | (435 | ) | (103 | ) | (607 | ) | ||||||||
Lost NOI from casualty losses covered by business interruption insurance | 48 | — | 48 | — | ||||||||||||
Loss on extinguishment of consolidated debt | 268 | 229 | 9,438 | 509 | ||||||||||||
Advocacy contributions | 1,465 | — | 1,766 | — | ||||||||||||
Severance related costs | 89 | 1,353 | 2,040 | 1,372 | ||||||||||||
Development pursuit write-offs and expensed transaction costs, net | 269 | 1,327 | 3,389 | 1,604 | ||||||||||||
Gain on for-sale condominiums (1)(2) | (2,544 | ) | — | (7,447 | ) | — | ||||||||||
For-sale condominium marketing and administrative costs (2) | 1,196 | 945 | 2,639 | 1,418 | ||||||||||||
For-sale condominium imputed carry cost (3) | 2,824 | 506 | 6,433 | 506 | ||||||||||||
Gain on other real estate transactions | (156 | ) | (34 | ) | (199 | ) | (301 | ) | ||||||||
Legal settlements | (67 | ) | 38 | (24 | ) | (978 | ) | |||||||||
Income tax benefit | (1,133 | ) | — | (1,042 | ) | (6 | ) | |||||||||
Core FFO attributable to common stockholders | $ | 313,259 | $ | 316,522 | $ | 649,016 | $ | 636,398 | ||||||||
Average shares outstanding - diluted | 140,738,160 | 139,618,231 | 140,752,331 | 139,227,376 | ||||||||||||
Earnings per share - diluted | $ | 1.21 | $ | 1.21 | $ | 2.41 | $ | 2.43 | ||||||||
FFO per common share - diluted | $ | 2.21 | $ | 2.24 | $ | 4.49 | $ | 4.55 | ||||||||
Core FFO per common share - diluted | $ | 2.23 | $ | 2.27 | $ | 4.61 | $ | 4.57 | ||||||||
(1) Amount for the three and six months ended June 30, 2020 includes the sale of 16 and 52 residential condominiums at The Park Loggia, respectively. | ||||||||||||||||
(2) Aggregate impact of (i) Gains on for-sale condominiums and (ii) For-sale condominium marketing and administrative costs, is a net gain of $1,348 and $4,808 for Q2 and YTD 2020, respectively, and a loss of $945 and $1,418 for Q2 and YTD 2019, respectively, as shown on Attachment 1 - Condensed Consolidated Operating Information. | ||||||||||||||||
(3) 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 effective interest rate. | ||||||||||||||||
TABLE 4 | |||
Core EBITDAre | $ | 367,978 | |
Interest expense, net | $ | 53,399 | |
Interest Coverage | 6.9 times | ||
TABLE 5 | |||
Total debt principal (1) | $ | 7,699,520 | |
Cash and cash in escrow | (415,694 | ) | |
Net debt | $ | 7,283,826 | |
Core EBITDAre | $ | 367,978 | |
Core EBITDAre, annualized | $ | 1,471,912 | |
Net Debt-to-Core EBITDAre | 4.9 times | ||
(1) Balance at June 30, 2020 excludes $11,183 of debt discount and $40,379 of deferred financing costs as reflected in unsecured notes, net, and $14,618 of debt discount and $3,130 of deferred financing costs as reflected in notes payable on the Condensed Consolidated Balance Sheets. | |||
TABLE 6 | ||||||||||||||||||||||||
Q2 | Q2 | Q1 | Q4 | YTD | YTD | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income | $ | 170,869 | $ | 168,305 | $ | 168,006 | $ | 167,671 | $ | 338,875 | $ | 338,723 | ||||||||||||
Indirect operating expenses, net of corporate income | 23,407 | 23,018 | 22,799 | 20,073 | 46,206 | 42,740 | ||||||||||||||||||
Expensed transaction, development and other pursuit costs, net of recoveries | 388 | 1,766 | 3,334 | 2,428 | 3,722 | 2,388 | ||||||||||||||||||
Interest expense, net | 53,399 | 50,010 | 55,914 | 54,190 | 109,313 | 97,902 | ||||||||||||||||||
Loss on extinguishment of debt, net | 268 | 229 | 9,170 | — | 9,438 | 509 | ||||||||||||||||||
General and administrative expense | 15,573 | 18,965 | 17,320 | 12,602 | 32,893 | 32,671 | ||||||||||||||||||
Joint venture (income) loss | (512 | ) | (197 | ) | (1,175 | ) | (7,872 | ) | (1,687 | ) | 863 | |||||||||||||
Depreciation expense | 176,249 | 162,693 | 177,911 | 171,364 | 354,160 | 324,749 | ||||||||||||||||||
Income tax (benefit) expense | (1,133 | ) | — | 91 | 1,825 | (1,042 | ) | (6 | ) | |||||||||||||||
Gain on sale of communities | (35,295 | ) | (20,530 | ) | (24,436 | ) | (256 | ) | (59,731 | ) | (35,365 | ) | ||||||||||||
Gain on other real estate transactions | (156 | ) | (34 | ) | (43 | ) | (65 | ) | (199 | ) | (300 | ) | ||||||||||||
Gain on for-sale condominiums, net of marketing and administrative costs | (1,348 | ) | 945 | (3,460 | ) | 1,286 | (4,808 | ) | 1,418 | |||||||||||||||
NOI from real estate assets sold or held for sale | (336 | ) | (5,075 | ) | (896 | ) | (1,848 | ) | (1,232 | ) | (11,281 | ) | ||||||||||||
NOI | $ | 401,373 | $ | 400,095 | $ | 424,535 | $ | 421,398 | $ | 825,908 | $ | 795,011 | ||||||||||||
Established: | ||||||||||||||||||||||||
New England | $ | 52,835 | $ | 52,474 | $ | 53,680 | $ | 54,868 | $ | 106,515 | $ | 104,557 | ||||||||||||
Metro NY/NJ | 78,080 | 84,420 | 84,484 | 85,463 | 162,564 | 167,404 | ||||||||||||||||||
Mid-Atlantic | 61,644 | 63,241 | 66,309 | 66,404 | 127,953 | 126,157 | ||||||||||||||||||
Pacific NW | 19,626 | 20,605 | 20,838 | 20,687 | 40,464 | 40,815 | ||||||||||||||||||
No. California | 77,844 | 78,093 | 80,451 | 79,415 | 158,295 | 156,808 | ||||||||||||||||||
So. California | 74,601 | 80,180 | 82,455 | 82,323 | 157,056 | 160,096 | ||||||||||||||||||
Expansion Markets | 3,561 | 3,403 | 3,428 | 3,401 | 6,989 | 6,916 | ||||||||||||||||||
Total Established | 368,191 | 382,416 | 391,645 | 392,561 | 759,836 | 762,753 | ||||||||||||||||||
Other Stabilized | 23,108 | 17,237 | 23,496 | 22,724 | 46,604 | 31,966 | ||||||||||||||||||
Development/Redevelopment (1) | 10,074 | 442 | 9,394 | 6,113 | 19,468 | 292 | ||||||||||||||||||
NOI | $ | 401,373 | $ | 400,095 | $ | 424,535 | $ | 421,398 | $ | 825,908 | $ | 795,011 | ||||||||||||
(1) The Company had no Redevelopment Communities for the periods presented. | ||||||||||||||||||||||||
TABLE 7 | ||||||||||||||||||||||||
Q2 | Q2 | Q1 | Q4 | YTD | YTD | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Revenue from real estate assets sold or held for sale | $ | 579 | $ | 8,712 | $ | 1,424 | $ | 2,721 | $ | 2,004 | $ | 19,352 | ||||||||||||
Operating expenses from real estate assets sold or held for sale | (243 | ) | (3,637 | ) | (528 | ) | (873 | ) | (772 | ) | (8,071 | ) | ||||||||||||
NOI from real estate assets sold or held for sale | $ | 336 | $ | 5,075 | $ | 896 | $ | 1,848 | $ | 1,232 | $ | 11,281 | ||||||||||||
TABLE 8 | ||||||||||||||||
Q2 | Q2 | YTD | YTD | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Rental revenue (GAAP basis) | $ | 522,992 | $ | 538,662 | $ | 1,070,506 | $ | 1,069,966 | ||||||||
Concessions amortized | 1,873 | 546 | 2,391 | 1,369 | ||||||||||||
Concessions granted | (11,042 | ) | (171 | ) | (12,130 | ) | (577 | ) | ||||||||
Rental Revenue with Concessions | ||||||||||||||||
on a Cash Basis | $ | 513,823 | $ | 539,037 | $ | 1,060,767 | $ | 1,070,758 | ||||||||
% change -- GAAP revenue | (2.9 | )% | 0.1 | % | ||||||||||||
% change -- cash revenue | (4.7 | )% | (0.9 | )% | ||||||||||||
TABLE 9 | ||||
Year to Date | ||||
NOI | ||||
NOI for Established Communities | $ | 759,836 | ||
NOI for Other Stabilized Communities | 46,604 | |||
NOI for Development/Redevelopment Communities (1) | 19,468 | |||
NOI from real estate assets sold or held for sale | 1,232 | |||
Total NOI generated by real estate assets | 827,140 | |||
NOI on encumbered assets | 53,756 | |||
NOI on unencumbered assets | $ | 773,384 | ||
Unencumbered NOI | 94 | % | ||
(1) The Company had no Redevelopment Communities as of June 30, 2020. | ||||