EX-99.1
Published on June 18, 2002
Exhibit 99.1
Slide 1:
AvalonBay
Communities, Inc.
AvalonBay Analyst/Investor Event
Evolution of AVBs Presence in Washington, DC Metro Area
June 18th, 2002
Slide 2:
General Market Overview
Market Overview
[See the slide of the same title in Exhibit 99.2]
Slide 3:
General Market Overview
Market Overview
Stable economic base
Unemployment historically lower than U.S. average
High education and income levels
Slide 4:
General Market Overview
Market Profile
|
Demographics |
|
|
|
Total Population |
|
5.0M |
|
Total Households |
|
1.9M |
|
Average Household Income |
|
$110,362 (U.S. $94,622) |
|
Housing |
|
|
|
Total Market Rate Apts. |
|
352,640 |
|
Median Sales Price |
|
$184,000 (U.S. $158,000) |
1
|
Employment |
|
|
|
Total Employment |
|
2.8M |
|
Unemployment Rate |
|
3.7% (U.S. 6.0%) |
|
01 Employment Growth |
|
35,800 / 1.3% (U.S. 0.3%) |
|
3-yr. Ann. Employ. Growth |
|
81,100 / 3.1% |
Slide 5:
General Market Overview
Economic Drivers
Increased government spending offsets other weaknesses
Area high-tech employment substantial but less volatile than other areas
Growth corridors
Slide 6:
General Market Overview
New Supply
[See the slide of the same title in Exhibit 99.2. In the chart presented, the vertical axis represents new apartment homes completed each year.]
Slide 7:
General Market Overview
Demand/Supply Ratio
[See the slide of the same title in Exhibit 99.2. In the chart presented, the vertical axis represents the percentage of net new renter households divided by new apartment completions.]
Slide 8:
AVB Portfolio
Evolution of AVB Presence
1994 Communities
[See the slide of the same title in Exhibit 99.2]
2
Slide 9:
AVB Portfolio
Evolution of AVB Presence
1997 Communities
[See the slide of the same title in Exhibit 99.2]
Slide 10:
AVB Portfolio
Current Portfolio
2002 Communities
[See the slide of the same title in Exhibit 99.2]
Slide 11:
AVB Portfolio
Portfolio Characteristics
Varied Product Mix
17 Stabilized Communities
7 Development Communities/Rights
D.C. Portfolio is 12.7% of AVB Apartments
Slide 12:
AVB Portfolio
Portfolio Characteristics
|
Current Portfolio |
|
Including Development |
|
|
|
|
|
Pie Chart showing: |
|
Pie Chart showing: |
|
|
|
|
|
DC 8% |
|
DC 14% |
|
MD 18% |
|
MD 39% |
|
VA 74% |
|
VA 47% |
(1) Based on total dollars invested/projected to be invested at 12/31/01.
3
Slide 13:
AVB Market Strategy
Market Strategy
Major employment centers, growth corridors, infill locations
Differentiated product
Complex, infill sites with multiple uses
Deal structures where REIT status provides unique advantage
Design sensitivity
Slide 14:
Recent Completions
Recent Completions
[See slide of the same title in Exhibit 99.2]
Slide 15:
Recent Completions
Avalon Crescent
McLean, Virginia
[Photo of Avalon Crescent]
Completed 1997
558 Apartment Homes
$102,000 Cost/Apartment
$1,679 Rent/Apartment
$1.53 Rent per Sq. Ft.
4
Slide 16:
Recent Completions
Avalon at Cameron Court
Alexandria, Virginia
[Photo of Avalon at Cameron Court]
Completed 1998
460 Apartment Homes
$94,000 Cost/Apartment
$1,626 Rent/Apartment
$1.60 Rent per Sq. Ft.
Slide 17:
Recent Completions
Avalon at Fox Mill
Herndon, Virginia
[Photo of Avalon at Fox Mill]
Completed 2000
165 Apartment Homes
$118,000 Cost/Apartment
$1,605 Rent/Apartment
$1.21 Rent per Sq. Ft.
Slide 18:
Recent Completions
Avalon at Arlington Square I
Arlington, Virginia
[Photo of Avalon at Arlington Square I]
Completed 2001
510 Apartment Homes
$137,000 Cost/Apartment
$1,840 Rent/Apartment
$1.61 Rent per Sq. Ft.
Slide 19:
Recent Completions
Performance Summary
(last six years)
8 Development Completions
$250 Million Total Capital Cost
11.7% Average Initial Year Yield
[downward arrow]
$140 Million Value Creation
[Supplemental Note: The statement regarding value creation describes AvalonBays estimate of the current fair market value of the eight communities completed in the Washington, D.C. area in the last six years minus their original cost of construction and development. The yield referred to above is AvalonBays determination of community-level earnings achieved for the first stabilized year of operations following the completion of construction (before interest, income taxes (if any), depreciation, amortization and extraordinary items, and after taking into account operating expenses for the community but not a management fee or any allocation of corporate overhead), divided by the cost of construction. Yield, and the components used to calculate yield, are not determined in accordance with generally accepted accounting principles and the method for determining yield used by other REITs could differ.]
5
Slide 20:
Development Pipeline
Development Activity
Development Communities
|
Community |
|
Location |
|
Number |
|
Budgeted |
|
|
|
|
|
|
|
|
|
|
|
|
|
Avalon at Arlington Square II |
|
Arlington, VA |
|
332 |
|
$ |
43.9 |
|
|
Avalon at Gallery Place |
|
Washington, DC |
|
203 |
|
$ |
50.0 |
|
|
Avalon at Rock Spring |
|
North Bethesda, MD |
|
386 |
|
$ |
45.9 |
|
|
Avalon at Grosvenor Station |
|
North Bethesda, MD |
|
499 |
|
$ |
82.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
1,420 |
|
$ |
222.1 |
|
Slide 21:
Development Pipeline
Avalon at Arlington Square II
[Photo of Avalon at Arlington Square II]
332 Apartment Homes
$43.9M Budgeted Cost
$1,695 Pro Forma Avg. Rent/Apt.
$1.73 Pro Forma Avg. Rent/Sq. Ft.
Expected Completion Q3 2002
Slide 22:
Development Pipeline
Avalon at Gallery Place I
[Photo of Avalon at Gallery Place I]
203 Apartment Homes/8,600 SF Retail
$50M Budgeted Construction Cost
$2,485 Pro Forma Avg. Rent/Apt.
$2.75 Pro Forma Avg. Rent/Sq. Ft.
($2.55 base rent)
Expected Completion Q4 2003
6
Slide 23:
Development Pipeline
Avalon at Rock Spring
[Photo of Avalon at Rock Spring]
386 Apartment Homes
$45.9M Budgeted Cost
$1,660 Pro Forma Avg. Rent/Apt.
$1.68 Pro Forma Avg. Rent/Sq. Ft.
Expected Completion Q3 2003
Slide 24:
Development Pipeline
Avalon at Grosvenor Station
[Photo of Avalon at Grosvenor Station]
499 Apartment Homes
$82.3M Budgeted Cost
$1,695 Pro Forma Avg. Rent/Apt.
$1.80 Pro Forma Avg. Rent/Sq. Ft.
Expected Completion Q4 2004
Slide 25:
Development Pipeline
Development Pipeline
[See slide of same title in Exhibit 99.2]
7
Slide 26:
Development Pipeline
Development Activity
Development Rights
|
|
|
|
|
Number |
|
Budgeted |
|
|
|
|
|
|
|
of |
|
Cost |
|
|
|
Community |
|
Location |
|
Homes |
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Avalon Traville |
|
North Potomac, MD |
|
520 |
|
$ |
69 |
|
|
Avalon at Gallery Place II |
|
Washington, DC |
|
144 |
|
$ |
30 |
|
|
Avalon at University Station |
|
College Park, MD |
|
320 |
|
$ |
44 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
984 |
|
$ |
143 |
|
Slide 27:
Summary
Shift to Maryland, D.C.
Increased mix of suburban and urban
Representative of broader trend in AVB portfolio
Market leadership
Slide 28:
Development Pipeline
Avalon at Gallery Place
[See the slide of the same title in Exhibit 99.2]
Slide 29:
Development Pipeline
Avalon at Gallery Place I
[Photo of Avalon at Gallery Place I]
203 Apartment Homes/8,600 SF Retail
$50M Budgeted Construction Cost
$2,485 Pro Forma Avg. Rent/Apt.
$2.75 Pro Forma Avg. Rent/Sq. Ft.
($2.55 base rent)
Expected Completion Q4 2003
Slide 30:
Development Pipeline
Avalon at Gallery Place
[See the slide of the same title in Exhibit 99.2]
8