Maryland | 77-0404318 | ||
(State or other jurisdiction of | (I.R.S. Employer | ||
incorporation or organization) | Identification No.) |
99.1 | Press Release of AvalonBay Communities, Inc. dated July 25, 2016, including attachments. |
99.2 | Supplemental discussion of second quarter 2016 operating results dated July 25, 2016, including attachments. |
AVALONBAY COMMUNITIES, INC. | |||
Dated: July 25, 2016 | By: | /s/ Kevin P. O’Shea | |
Kevin P. O’Shea | |||
Chief Financial Officer |
99.1 | Press Release of AvalonBay Communities, Inc. dated July 25, 2016, including attachments. | |
99.2 | Supplemental discussion of second quarter 2016 operating results dated July 25, 2016, including attachments. |
Second Quarter 2016 Results | |||||||||
Comparison to April 2016 Outlook | |||||||||
Per Share | |||||||||
EPS | FFO | Core FFO | |||||||
Projected per share - April 2016 outlook (1) | $ | 1.49 | $ | 2.10 | $ | 2.00 | |||
Established and Redevelopment Community NOI | 0.02 | 0.02 | 0.02 | ||||||
Gain on sale of real estate | (0.13 | ) | (0.14 | ) | — | ||||
Casualty and impairment loss | 0.02 | (0.02 | ) | — | |||||
Joint venture income and other | 0.04 | 0.03 | 0.01 | ||||||
Q2 2016 per share reported results | $ | 1.44 | $ | 1.99 | $ | 2.03 | |||
(1) The mid-point of the Company's April 2016 outlook. | |||||||||
Q2 2016 Compared to Q2 2015 | |||||||||||||||
Rental Revenue | |||||||||||||||
Avg Rent | Ec | % of | |||||||||||||
Rates | Occ | Opex (1) | NOI | NOI (2) | |||||||||||
New England | 4.0 | % | (0.4 | )% | 5.3 | % | 2.7 | % | 14.2 | % | |||||
Metro NY/NJ | 3.1 | % | 0.2 | % | 5.5 | % | 2.3 | % | 24.4 | % | |||||
Mid-Atlantic | 1.6 | % | — | % | (0.2 | )% | 2.5 | % | 15.2 | % | |||||
Pacific NW | 7.0 | % | (0.5 | )% | 8.2 | % | 5.6 | % | 5.2 | % | |||||
No. California | 8.7 | % | (0.1 | )% | 14.4 | % | 6.8 | % | 21.0 | % | |||||
So. California | 7.1 | % | (0.4 | )% | (1.1 | )% | 10.3 | % | 20.0 | % | |||||
Total | 5.2 | % | (0.2 | )% | 4.7 | % | 5.0 | % | 100.0 | % | |||||
(1) See the full release for discussion of variances. | |||||||||||||||
(2) Represents each region's % of total NOI for Q2 2016, including amounts related to communities that have been sold or that are classified as held for sale. | |||||||||||||||
YTD 2016 Compared to YTD 2015 | |||||||||||||||
Rental Revenue | |||||||||||||||
Avg Rent | Ec | % of | |||||||||||||
Rates | Occ | Opex (1) | NOI | NOI (2) | |||||||||||
New England | 4.7 | % | (0.4 | )% | (3.0 | )% | 8.9 | % | 14.3 | % | |||||
Metro NY/NJ | 3.4 | % | (0.1 | )% | 4.3 | % | 2.8 | % | 24.2 | % | |||||
Mid-Atlantic | 1.6 | % | (0.2 | )% | 0.4 | % | 1.9 | % | 15.1 | % | |||||
Pacific NW | 6.9 | % | (0.4 | )% | 6.9 | % | 6.2 | % | 5.2 | % | |||||
No. California | 9.5 | % | (0.4 | )% | 8.8 | % | 9.1 | % | 21.1 | % | |||||
So. California | 7.4 | % | (0.2 | )% | 0.7 | % | 10.1 | % | 20.1 | % | |||||
Total | 5.4 | % | (0.2 | )% | 2.4 | % | 6.4 | % | 100.0 | % | |||||
(1) See the full release for discussion of variances. | |||||||||||||||
(2) Represents each region's % of total NOI for YTD 2016, including amounts related to communities that have been sold or that are classified as held for sale. | |||||||||||||||
• | AVA Capitol Hill, located in Seattle, WA; |
• | Avalon Irvine III, located in Irvine, CA; and |
• | Avalon Union, located in Union, NJ. |
• | Avalon Somers, located in Somers, NY; and |
• | AVA North Point, located in Cambridge, MA. |
Projected EPS, Projected FFO and Projected Core FFO Outlook (1) | ||||||||
Q3 2016 | Full Year 2016 | |||||||
Low | High | Low | High | |||||
Projected EPS | $2.69 | - | $2.75 | $7.48 | - | $7.68 | ||
Projected FFO per share | $2.14 | - | $2.20 | $8.26 | - | $8.46 | ||
Projected Core FFO per share (1) | $2.05 | - | $2.11 | $8.13 | - | $8.33 | ||
(1) See the full release for reconciliations of Projected FFO per share and Projected Core FFO per share to Projected EPS. | ||||||||
July 2016 Full Year Outlook | |||||||||
Comparison to February 2016 Outlook | |||||||||
Per Share | |||||||||
EPS | FFO | Core FFO | |||||||
Projected per share - February 2016 outlook (1) | $ | 7.06 | $ | 8.32 | $ | 8.23 | |||
Established Community NOI | (0.03 | ) | (0.03 | ) | (0.03 | ) | |||
Other community NOI | 0.01 | 0.01 | 0.01 | ||||||
Capital markets and transaction activity | (0.01 | ) | (0.01 | ) | 0.02 | ||||
Interest expense and capitalized interest | 0.01 | 0.01 | 0.01 | ||||||
Joint venture income, management fees and overhead | 0.05 | 0.05 | (0.01 | ) | |||||
Casualty and impairment loss, net | (0.04 | ) | (0.07 | ) | — | ||||
Gain on sale of real estate | 0.61 | 0.08 | — | ||||||
Depreciation expense (real estate related) | (0.08 | ) | — | — | |||||
Projected per share - July 2016 outlook (1) | $ | 7.58 | $ | 8.36 | $ | 8.23 | |||
(1) The mid-point of the Company's outlook. | |||||||||
Q2 | Q2 | YTD | YTD | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income attributable to common stockholders | $ | 197,444 | $ | 172,324 | $ | 435,377 | $ | 380,469 | ||||||||
Depreciation - real estate assets, including discontinued operations and joint venture adjustments | 134,858 | 119,856 | 262,558 | 238,177 | ||||||||||||
Distributions to noncontrolling interests, including discontinued operations | 10 | 9 | 20 | 19 | ||||||||||||
Gain on sale of unconsolidated entities holding previously depreciated real estate | (23,547 | ) | (1,718 | ) | (53,172 | ) | (10,873 | ) | ||||||||
Gain on sale of previously depreciated real estate | (30,990 | ) | — | (82,420 | ) | (70,936 | ) | |||||||||
Casualty and impairment (recovery) loss, net on real estate (1)(5) | (4,195 | ) | — | (4,195 | ) | 4,195 | ||||||||||
FFO attributable to common stockholders | 273,580 | 290,471 | 558,168 | 541,051 | ||||||||||||
Adjusting items: | ||||||||||||||||
Joint venture losses (gains) (2) | 574 | (8,282 | ) | 5,568 | (10,283 | ) | ||||||||||
Business interruption ("BI") insurance proceeds | (10 | ) | (66 | ) | (20,344 | ) | (154 | ) | ||||||||
Casualty and impairment loss (gain), net on real estate (3)(5) | 2,463 | (17,114 | ) | 261 | (15,521 | ) | ||||||||||
Lost NOI from casualty losses covered by BI insurance | 1,833 | 1,687 | 3,703 | 3,334 | ||||||||||||
Loss (gain) on extinguishment of consolidated debt | 2,461 | (7,749 | ) | 2,461 | (7,749 | ) | ||||||||||
Acquisition costs | 829 | 62 | 1,929 | 940 | ||||||||||||
Severance related costs | (24 | ) | 16 | 561 | 1,664 | |||||||||||
Development pursuit and other write-offs | 338 | 353 | 771 | 462 | ||||||||||||
Joint venture promote (4) | (3,447 | ) | (1,289 | ) | (3,447 | ) | (21,969 | ) | ||||||||
Gain on sale of other real estate | (143 | ) | (9,625 | ) | (143 | ) | (9,647 | ) | ||||||||
Income taxes | — | 997 | — | 997 | ||||||||||||
Core FFO attributable to common stockholders | $ | 278,454 | $ | 249,461 | $ | 549,488 | $ | 483,125 | ||||||||
Average shares outstanding - diluted | 137,437,733 | 133,086,439 | 137,410,387 | 133,131,363 | ||||||||||||
Earnings per share - diluted | $ | 1.44 | $ | 1.29 | $ | 3.17 | $ | 2.86 | ||||||||
FFO per common share - diluted | $ | 1.99 | $ | 2.18 | $ | 4.06 | $ | 4.06 | ||||||||
Core FFO per common share - diluted | $ | 2.03 | $ | 1.87 | $ | 4.00 | $ | 3.63 | ||||||||
(1) In 2015, the Company recognized an impairment on depreciable real estate of $4,195 from the severe winter storms that occurred in the Company’s Northeast markets. In Q2 2016, the Company received insurance proceeds, net of additional costs incurred, of $5,732 related to the winter storms. For Q2 and YTD 2016, the Company recognized $4,195 of this recovery as an offset to the loss recognized in the prior year period. The balance of the net insurance proceeds received in 2016 of $1,537 is recognized as a casualty gain and is included in the reconciliation of FFO to Core FFO. | ||||||||||||||||
(2) Amounts for 2016 are primarily composed of the Company's portion of yield maintenance charges incurred for the early repayment of debt associated with joint venture disposition activity. Amount for YTD 2016 also includes the write-off of asset management fee intangibles primarily associated with the disposition of communities in the U.S. Fund. Amounts for 2015 are primarily composed of the Company's proportionate share of gains and operating results for joint ventures formed with Equity Residential as part of the Archstone acquisition. | ||||||||||||||||
(3) Amounts for Q2 and YTD 2016 include impairment charges of $4,000 and $10,500, respectively, relating to ancillary land parcels, partially offset by $1,537 in insurance proceeds in excess of the total recognized loss related to severe winter storms in the Company's Northeast markets that occurred in 2015. Amount for YTD 2016 also includes $8,702 in property damage insurance proceeds for the Edgewater casualty loss. Amounts for Q2 and YTD 2015 include $22,000 and $44,142, respectively, of Edgewater insurance proceeds received, partially offset by $4,886 and $27,679, respectively, for the write-off of real estate and related costs. | ||||||||||||||||
(4) Amounts for 2016 are composed of the Company's recognition of its promoted interest in Fund II. Amount for YTD 2015 is primarily composed of a joint venture partner's buyout of the Company's promoted interest in future distributions of MVP I, LLC. | ||||||||||||||||
(5) Aggregate impact of Casualty and impairment (recovery) loss, net on real estate and Casualty and impairment loss (gain), net on real estate for Q2 and YTD 2016 are gains of $1,732 and $3,935, respectively. | ||||||||||||||||
Net income attributable to common stockholders | $ | 197,444 | |
Interest expense, net | 46,581 | ||
Income tax expense | 36 | ||
Depreciation expense | 132,469 | ||
EBITDA | $ | 376,530 | |
NOI from real estate assets sold or held for sale | (1,192 | ) | |
Gain on sale of communities | (30,990 | ) | |
EBITDA after disposition activity | $ | 344,348 | |
Joint venture income | (27,151 | ) | |
Casualty and impairment (gain) loss, net | (1,732 | ) | |
Lost NOI from casualty losses | 1,833 | ||
Loss on extinguishment of debt, net | 2,461 | ||
Gain on sale of other real estate | (143 | ) | |
Business interruption insurance proceeds | (10 | ) | |
Acquisition costs | 829 | ||
Severance related costs | (24 | ) | |
Development pursuit and other write-offs | 338 | ||
Core EBITDA | $ | 320,749 | |
Interest expense, net | $ | 46,581 | |
Interest Coverage | 6.9 times | ||
Total debt principal (1) | $ | 6,864,985 | |
Cash and cash in escrow | (287,691 | ) | |
Net debt | $ | 6,577,294 | |
Core EBITDA | $ | 320,749 | |
Core EBITDA, annualized | $ | 1,282,996 | |
Net Debt-to-Core EBITDA | 5.1 times | ||
(1) Balance at June 30, 2016 excludes $7,178 of debt discount and $23,657 of deferred financing costs as reflected in unsecured notes, net, and $11,701 of debt premium and $11,860 of deferred financing costs as reflected in notes payable, on the Condensed Consolidated Balance Sheets. The debt premium is primarily related to above market interest rates on debt assumed in connection with the Archstone acquisition. | |||
Q2 | Q2 | Q1 | Q4 | YTD | YTD | |||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Net income | $ | 197,319 | $ | 172,253 | $ | 237,877 | $ | 155,352 | $ | 435,197 | $ | 380,306 | ||||||||||||
Indirect operating expenses, net of corporate income | 15,477 | 14,817 | 16,537 | 13,332 | 32,015 | 30,215 | ||||||||||||||||||
Investments and investment management expense | 1,194 | 1,073 | 1,145 | 1,096 | 2,340 | 2,107 | ||||||||||||||||||
Expensed acquisition, development and other pursuit costs, net of recoveries | 1,436 | 673 | 3,462 | 1,570 | 4,897 | 1,860 | ||||||||||||||||||
Interest expense, net | 46,581 | 44,590 | 43,410 | 42,217 | 89,991 | 90,164 | ||||||||||||||||||
Loss (gain) on extinguishment of debt, net | 2,461 | (7,749 | ) | — | — | 2,461 | (7,749 | ) | ||||||||||||||||
General and administrative expense | 12,011 | 10,335 | 11,404 | 11,508 | 23,414 | 20,803 | ||||||||||||||||||
Joint venture income | (27,151 | ) | (13,806 | ) | (27,969 | ) | (1,093 | ) | (55,120 | ) | (48,371 | ) | ||||||||||||
Depreciation expense | 132,469 | 118,627 | 127,216 | 122,259 | 259,685 | 235,480 | ||||||||||||||||||
Income tax expense | 36 | 1,293 | 37 | 135 | 73 | 1,308 | ||||||||||||||||||
Casualty and impairment (gain) loss, net | (1,732 | ) | (17,114 | ) | (2,202 | ) | 125 | (3,935 | ) | (11,326 | ) | |||||||||||||
Gain on sale of real estate | (31,133 | ) | (9,625 | ) | (51,430 | ) | (9,474 | ) | (82,563 | ) | (80,583 | ) | ||||||||||||
NOI from real estate assets sold or held for sale (1) | (1,192 | ) | (4,377 | ) | (2,025 | ) | (3,281 | ) | (3,218 | ) | (8,812 | ) | ||||||||||||
NOI | $ | 347,776 | $ | 310,990 | $ | 357,462 | $ | 333,746 | $ | 705,237 | $ | 605,402 | ||||||||||||
Established: | ||||||||||||||||||||||||
New England | $ | 37,170 | $ | 36,182 | $ | 36,670 | $ | 38,294 | $ | 73,840 | $ | 67,824 | ||||||||||||
Metro NY/NJ | 61,951 | 60,551 | 59,764 | 62,988 | 121,715 | 118,456 | ||||||||||||||||||
Mid-Atlantic | 40,530 | 39,560 | 40,063 | 41,210 | 80,593 | 79,089 | ||||||||||||||||||
Pacific NW | 15,843 | 14,997 | 15,745 | 15,502 | 31,588 | 29,747 | ||||||||||||||||||
No. California | 60,850 | 56,985 | 60,248 | 59,354 | 121,097 | 111,011 | ||||||||||||||||||
So. California | 50,934 | 46,182 | 51,041 | 49,227 | 101,975 | 92,655 | ||||||||||||||||||
Total Established | 267,278 | 254,457 | 263,531 | 266,575 | 530,808 | 498,782 | ||||||||||||||||||
Other Stabilized (2) | 38,593 | 29,046 | 58,604 | 33,296 | 97,197 | 53,199 | ||||||||||||||||||
Development/Redevelopment | 41,905 | 27,487 | 35,327 | 33,875 | 77,232 | 53,421 | ||||||||||||||||||
NOI | $ | 347,776 | $ | 310,990 | $ | 357,462 | $ | 333,746 | $ | 705,237 | $ | 605,402 | ||||||||||||
(1) Represents NOI from real estate assets sold or held for sale that are not otherwise classified as discontinued operations. | ||||||||||||||||||||||||
(2) NOI for Q1 2016 and YTD 2016 Other Stabilized Communities includes $20,306 of business interruption insurance proceeds related to the Edgewater casualty loss. | ||||||||||||||||||||||||
Q2 | Q2 | YTD | YTD | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenue from real estate assets sold or held for sale | $ | 2,016 | $ | 7,292 | $ | 5,365 | $ | 14,726 | ||||||||
Operating expenses from real estate assets sold or held for sale | (824 | ) | (2,915 | ) | (2,147 | ) | (5,914 | ) | ||||||||
NOI from real estate assets sold or held for sale | $ | 1,192 | $ | 4,377 | $ | 3,218 | $ | 8,812 | ||||||||
Low Range | High Range | ||||||||
Projected EPS (diluted) - Q3 2016 | $ | 2.69 | $ | 2.75 | |||||
Depreciation (real estate related) | 0.98 | 1.02 | |||||||
Gain on sale of communities | (1.53 | ) | (1.57 | ) | |||||
Projected FFO per share (diluted) - Q3 2016 | 2.14 | 2.20 | |||||||
Gain on sale of other real estate | (0.08 | ) | (0.08 | ) | |||||
JV costs, abandoned pursuits, acquisition costs and severance | (0.02 | ) | (0.02 | ) | |||||
Lost NOI from casualty losses | 0.01 | 0.01 | |||||||
Projected Core FFO per share (diluted) - Q3 2016 | $ | 2.05 | $ | 2.11 | |||||
Projected EPS (diluted) - Full Year 2016 | $ | 7.48 | $ | 7.68 | |||||
Depreciation (real estate related) | 3.77 | 3.97 | |||||||
Gain on sale of communities | (2.99 | ) | (3.19 | ) | |||||
Projected FFO per share (diluted) - Full Year 2016 | 8.26 | 8.46 | |||||||
JV costs, abandoned pursuits, acquisition costs and severance | 0.03 | 0.03 | |||||||
Gain on sale of other real estate | (0.08 | ) | (0.08 | ) | |||||
Lost NOI from casualty losses | 0.05 | 0.05 | |||||||
Early extinguishment of consolidated borrowings | 0.02 | 0.02 | |||||||
Business interruption insurance proceeds | (0.15 | ) | (0.15 | ) | |||||
Projected Core FFO per share (diluted) - Full Year 2016 | $ | 8.13 | $ | 8.33 | |||||
Q2 | Q2 | YTD | YTD | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Rental revenue (GAAP basis) | $ | 379,675 | $ | 361,689 | $ | 753,426 | $ | 716,075 | ||||||||
Concessions amortized | 216 | 757 | 410 | 1,785 | ||||||||||||
Concessions granted | (313 | ) | (23 | ) | (524 | ) | (511 | ) | ||||||||
Rental Revenue with Concessions | ||||||||||||||||
on a Cash Basis | $ | 379,578 | $ | 362,423 | $ | 753,312 | $ | 717,349 | ||||||||
% change -- GAAP revenue | 5.0 | % | 5.2 | % | ||||||||||||
% change -- cash revenue | 4.7 | % | 5.0 | % | ||||||||||||
Year to Date | ||||
NOI | ||||
NOI for Established Communities | $ | 530,808 | ||
NOI for Other Stabilized Communities (1) | 97,197 | |||
NOI for Development/Redevelopment Communities | 77,232 | |||
NOI from real estate assets sold or held for sale | 3,218 | |||
Total NOI generated by real estate assets | 708,455 | |||
NOI on encumbered assets | 141,104 | |||
NOI on unencumbered assets | $ | 567,351 | ||
Unencumbered NOI | 80 | % | ||
(1) NOI for Other Stabilized Communities includes $20,306 of business interruption insurance proceeds related to the Edgewater casualty loss. | ||||
Second Quarter 2016 Results | |||||||||
Comparison to April 2016 Outlook | |||||||||
Per Share | |||||||||
EPS | FFO | Core FFO | |||||||
Projected per share - April 2016 outlook (1) | $ | 1.49 | $ | 2.10 | $ | 2.00 | |||
Established and Redevelopment Community NOI | 0.02 | 0.02 | 0.02 | ||||||
Gain on sale of real estate | (0.13 | ) | (0.14 | ) | — | ||||
Casualty and impairment loss | 0.02 | (0.02 | ) | — | |||||
Joint venture income and other | 0.04 | 0.03 | 0.01 | ||||||
Q2 2016 per share reported results | $ | 1.44 | $ | 1.99 | $ | 2.03 | |||
(1) The mid-point of the Company's April 2016 outlook. | |||||||||
Q2 2016 Compared to Q2 2015 | |||||||||||||||
Rental Revenue | |||||||||||||||
Avg Rent | Ec | % of | |||||||||||||
Rates | Occ | Opex (1) | NOI | NOI (2) | |||||||||||
New England | 4.0 | % | (0.4 | )% | 5.3 | % | 2.7 | % | 14.2 | % | |||||
Metro NY/NJ | 3.1 | % | 0.2 | % | 5.5 | % | 2.3 | % | 24.4 | % | |||||
Mid-Atlantic | 1.6 | % | — | % | (0.2 | )% | 2.5 | % | 15.2 | % | |||||
Pacific NW | 7.0 | % | (0.5 | )% | 8.2 | % | 5.6 | % | 5.2 | % | |||||
No. California | 8.7 | % | (0.1 | )% | 14.4 | % | 6.8 | % | 21.0 | % | |||||
So. California | 7.1 | % | (0.4 | )% | (1.1 | )% | 10.3 | % | 20.0 | % | |||||
Total | 5.2 | % | (0.2 | )% | 4.7 | % | 5.0 | % | 100.0 | % | |||||
(1) See Attachment 7, Operating Expenses ("Opex"), for discussion of variances. | |||||||||||||||
(2) Represents each region's % of total NOI for Q2 2016, including amounts related to communities that have been sold or that are classified as held for sale. | |||||||||||||||
YTD 2016 Compared to YTD 2015 | |||||||||||||||
Rental Revenue | |||||||||||||||
Avg Rent | Ec | % of | |||||||||||||
Rates | Occ | Opex (1) | NOI | NOI (2) | |||||||||||
New England | 4.7 | % | (0.4 | )% | (3.0 | )% | 8.9 | % | 14.3 | % | |||||
Metro NY/NJ | 3.4 | % | (0.1 | )% | 4.3 | % | 2.8 | % | 24.2 | % | |||||
Mid-Atlantic | 1.6 | % | (0.2 | )% | 0.4 | % | 1.9 | % | 15.1 | % | |||||
Pacific NW | 6.9 | % | (0.4 | )% | 6.9 | % | 6.2 | % | 5.2 | % | |||||
No. California | 9.5 | % | (0.4 | )% | 8.8 | % | 9.1 | % | 21.1 | % | |||||
So. California | 7.4 | % | (0.2 | )% | 0.7 | % | 10.1 | % | 20.1 | % | |||||
Total | 5.4 | % | (0.2 | )% | 2.4 | % | 6.4 | % | 100.0 | % | |||||
(1) See Attachment 7, Operating Expenses ("Opex"), for discussion of variances. | |||||||||||||||
(2) Represents each region's % of total NOI for YTD 2016, including amounts related to communities that have been sold or that are classified as held for sale. | |||||||||||||||
• | AVA Capitol Hill, located in Seattle, WA; |
• | Avalon Irvine III, located in Irvine, CA; and |
• | Avalon Union, located in Union, NJ. |
• | Avalon Somers, located in Somers, NY; and |
• | AVA North Point, located in Cambridge, MA. |
Projected EPS, Projected FFO and Projected Core FFO Outlook (1) | ||||||||
Q3 2016 | Full Year 2016 | |||||||
Low | High | Low | High | |||||
Projected EPS | $2.69 | - | $2.75 | $7.48 | - | $7.68 | ||
Projected FFO per share | $2.14 | - | $2.20 | $8.26 | - | $8.46 | ||
Projected Core FFO per share (1) | $2.05 | - | $2.11 | $8.13 | - | $8.33 | ||
(1) See Attachment 14 for reconciliations of Projected FFO per share and Projected Core FFO per share to Projected EPS. | ||||||||
July 2016 Full Year Outlook | |||||||||
Comparison to February 2016 Outlook | |||||||||
Per Share | |||||||||
EPS | FFO | Core FFO | |||||||
Projected per share - February 2016 outlook (1) | $ | 7.06 | $ | 8.32 | $ | 8.23 | |||
Established Community NOI | (0.03 | ) | (0.03 | ) | (0.03 | ) | |||
Other community NOI | 0.01 | 0.01 | 0.01 | ||||||
Capital markets and transaction activity | (0.01 | ) | (0.01 | ) | 0.02 | ||||
Interest expense and capitalized interest | 0.01 | 0.01 | 0.01 | ||||||
Joint venture income, management fees and overhead | 0.05 | 0.05 | (0.01 | ) | |||||
Casualty and impairment loss, net | (0.04 | ) | (0.07 | ) | — | ||||
Gain on sale of real estate | 0.61 | 0.08 | — | ||||||
Depreciation expense (real estate related) | (0.08 | ) | — | — | |||||
Projected per share - July 2016 outlook (1) | $ | 7.58 | $ | 8.36 | $ | 8.23 | |||
(1) The mid-point of the Company's outlook. | |||||||||
Company Profile | ||
Detailed 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, Debt Profile and Disposition Activity | ||
Development Communities............................................................................................................................................ | Attachment 8 | |
Future Development...................................................................................................................................................... | Attachment 9 | |
Unconsolidated Real Estate Investments...................................................................................................................... | Attachment 10 | |
Debt Structure and Select Debt Metrics......................................................................................................................... | Attachment 11 | |
Summary of Disposition Activity..................................................................................................................................... | Attachment 12 | |
Financial Outlook | ||
2016 Financial Outlook................................................................................................................................................. | Attachment 13 | |
Definitions and Reconciliations | ||
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms................................................... | Attachment 14 |
Q2 | Q2 | YTD | YTD | |||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||||
Revenue: | ||||||||||||||||||||||
Rental and other income (1) | $ | 500,840 | $ | 454,517 | 10.2 | % | $ | 1,007,814 | $ | 894,273 | 12.7 | % | ||||||||||
Management, development and other fees | 1,467 | 2,942 | (50.1 | )% | 2,990 | 5,553 | (46.2 | )% | ||||||||||||||
Total | 502,307 | 457,459 | 9.8 | % | 1,010,804 | 899,826 | 12.3 | % | ||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Direct property operating expenses, excluding property taxes | 100,739 | 93,214 | 8.1 | % | 198,126 | 186,936 | 6.0 | % | ||||||||||||||
Property taxes | 51,107 | 45,913 | 11.3 | % | 101,174 | 93,089 | 8.7 | % | ||||||||||||||
Property management and other indirect operating expenses | 16,970 | 17,782 | (4.6 | )% | 35,064 | 35,802 | (2.1 | )% | ||||||||||||||
Total operating expenses | 168,816 | 156,909 | 7.6 | % | 334,364 | 315,827 | 5.9 | % | ||||||||||||||
Interest expense, net | (46,581 | ) | (44,590 | ) | 4.5 | % | (89,991 | ) | (90,164 | ) | (0.2 | )% | ||||||||||
(Loss) gain on extinguishment of debt, net | (2,461 | ) | 7,749 | N/A | (2,461 | ) | 7,749 | N/A | ||||||||||||||
General and administrative expense | (12,011 | ) | (10,335 | ) | 16.2 | % | (23,414 | ) | (20,803 | ) | 12.6 | % | ||||||||||
Joint venture income (2) | 27,151 | 13,806 | 96.7 | % | 55,120 | 48,371 | 14.0 | % | ||||||||||||||
Investments and investment management | (1,194 | ) | (1,073 | ) | 11.3 | % | (2,340 | ) | (2,107 | ) | 11.1 | % | ||||||||||
Expensed acquisition, development and other pursuit costs, net of recoveries (3) | (1,436 | ) | (673 | ) | 113.4 | % | (4,897 | ) | (1,860 | ) | 163.3 | % | ||||||||||
Depreciation expense | (132,469 | ) | (118,627 | ) | 11.7 | % | (259,685 | ) | (235,480 | ) | 10.3 | % | ||||||||||
Income tax expense | (36 | ) | (1,293 | ) | (97.2 | )% | (73 | ) | (1,308 | ) | (94.4 | )% | ||||||||||
Casualty and impairment gain (loss), net (4) | 1,732 | 17,114 | (89.9 | )% | 3,935 | 11,326 | (65.3 | )% | ||||||||||||||
Gain on sale of communities | 30,990 | — | 100.0 | % | 82,420 | 70,936 | 16.2 | % | ||||||||||||||
Gain on sale of other real estate | 143 | 9,625 | (98.5 | )% | 143 | 9,647 | (98.5 | )% | ||||||||||||||
Net income | 197,319 | 172,253 | 14.6 | % | 435,197 | 380,306 | 14.4 | % | ||||||||||||||
Net loss attributable to noncontrolling interests | 125 | 71 | 76.1 | % | 180 | 163 | 10.4 | % | ||||||||||||||
Net income attributable to common stockholders | $ | 197,444 | $ | 172,324 | 14.6 | % | $ | 435,377 | $ | 380,469 | 14.4 | % | ||||||||||
Net income attributable to common stockholders per common share - basic | $ | 1.44 | $ | 1.30 | 10.8 | % | $ | 3.17 | $ | 2.88 | 10.1 | % | ||||||||||
Net income attributable to common stockholders per common share - diluted | $ | 1.44 | $ | 1.29 | 11.6 | % | $ | 3.17 | $ | 2.86 | 10.8 | % | ||||||||||
Funds from Operations | $ | 273,580 | $ | 290,471 | (5.8 | )% | $ | 558,168 | $ | 541,051 | 3.2 | % | ||||||||||
Per common share - diluted | $ | 1.99 | $ | 2.18 | (8.7 | )% | $ | 4.06 | $ | 4.06 | — | % | ||||||||||
Dividends declared - common | $ | 185,369 | $ | 166,109 | 11.6 | % | $ | 370,537 | $ | 331,346 | 11.8 | % | ||||||||||
Per common share | $ | 1.35 | $ | 1.25 | 8.0 | % | $ | 2.70 | $ | 2.50 | 8.0 | % | ||||||||||
Average shares and participating securities outstanding - basic | 137,277,401 | 132,319,255 | 3.7 | % | 137,213,698 | 132,269,714 | 3.7 | % | ||||||||||||||
Average shares outstanding - diluted | 137,437,733 | 133,086,439 | 3.3 | % | 137,410,387 | 133,131,363 | 3.2 | % | ||||||||||||||
Total outstanding common shares and operating partnership units | 137,320,034 | 132,895,667 | 3.3 | % | 137,320,034 | 132,895,667 | 3.3 | % |
(1) | Amount for the six months ended June 30, 2016 includes $20,306 of business interruption insurance proceeds related to the Edgewater casualty loss. |
(2) | Amounts for the three and six months ended June 30, 2016 include $3,447 relating to the Company's recognition of its promoted interest in Fund II, and $23,547 and $53,172, respectively, in disposition gains. Amounts for the three and six months ended June 30, 2015 include $12,232 and $23,807, respectively, in disposition gains, legal settlements and distributions associated with the wind down of joint ventures. In addition, the amount for the six months ended June 30, 2015 includes income of $20,680 from a joint venture partner’s buyout of the Company’s promoted interest in future distributions of MVP I, LLC. |
(3) | Amount for the six months ended June 30, 2016 includes $1,616 related to the non-cash write-off of asset management fee intangibles primarily associated with the disposition of communities in Multifamily Partners AC LP (the "U.S. Fund"). |
(4) | Amounts for the three and six months ended June 30, 2016 include insurance proceeds net of casualty losses, partially offset by impairment charges for undeveloped land. Amounts for 2015 are primarily composed of insurance proceeds, partially offset by costs from the Edgewater casualty loss. |
June 30, | December 31, | |||||||
2016 | 2015 | |||||||
Real estate | $ | 17,922,243 | $ | 17,151,277 | ||||
Less accumulated depreciation | (3,540,481 | ) | (3,303,751 | ) | ||||
Net operating real estate | 14,381,762 | 13,847,526 | ||||||
Construction in progress, including land | 1,538,641 | 1,592,917 | ||||||
Land held for development | 511,797 | 484,377 | ||||||
Real estate assets held for sale, net | 65,894 | 17,489 | ||||||
Total real estate, net | 16,498,094 | 15,942,309 | ||||||
Cash and cash equivalents | 182,306 | 400,507 | ||||||
Cash in escrow | 105,385 | 104,821 | ||||||
Resident security deposits | 33,624 | 30,077 | ||||||
Investments in unconsolidated real estate entities | 325,614 | 216,919 | ||||||
Other assets | 250,044 | 236,672 | ||||||
Total assets | $ | 17,395,067 | $ | 16,931,305 | ||||
Unsecured notes, net | $ | 4,319,165 | $ | 3,845,674 | ||||
Unsecured credit facility | — | -- | ||||||
Notes payable, net | 2,514,826 | 2,611,274 | ||||||
Resident security deposits | 58,093 | 53,132 | ||||||
Liabilities related to real estate assets held for sale | 1,549 | 553 | ||||||
Other liabilities | 634,946 | 570,149 | ||||||
Total liabilities | $ | 7,528,579 | $ | 7,080,782 | ||||
Redeemable noncontrolling interests | 9,969 | 9,997 | ||||||
Equity | 9,856,519 | 9,840,526 | ||||||
Total liabilities and equity | $ | 17,395,067 | $ | 16,931,305 |
Total | Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||||
Apartment | June | March | December | ||||||||||||
Homes | 30, 2016 | 31, 2016 | 31, 2015 | ||||||||||||
RENTAL REVENUE (2) | |||||||||||||||
Established (3) | 54,825 | $ | 379,675 | $ | 373,751 | $ | 372,421 | ||||||||
Other Stabilized (3) (4) | 8,377 | 57,956 | 55,557 | 49,978 | |||||||||||
Redevelopment (3) | 4,893 | 41,580 | 40,867 | 40,881 | |||||||||||
Development (3) | 9,706 | 18,804 | 12,355 | 8,492 | |||||||||||
Total Consolidated Communities | 77,801 | $ | 498,015 | $ | 482,530 | $ | 471,772 | ||||||||
OPERATING EXPENSE | |||||||||||||||
Established | $ | 112,575 | $ | 110,421 | $ | 106,066 | |||||||||
Other Stabilized (4) | 19,907 | 17,800 | 17,100 | ||||||||||||
Redevelopment | 11,289 | 11,989 | 12,026 | ||||||||||||
Development | 7,267 | 5,935 | 4,536 | ||||||||||||
Total Consolidated Communities | $ | 151,038 | $ | 146,145 | $ | 139,728 | |||||||||
NOI (3) | |||||||||||||||
Established | $ | 267,278 | $ | 263,531 | $ | 266,575 | |||||||||
Other Stabilized (4) (5) | 38,593 | 58,604 | 33,296 | ||||||||||||
Redevelopment | 30,429 | 29,052 | 29,029 | ||||||||||||
Development | 11,476 | 6,275 | 4,846 | ||||||||||||
Total Consolidated Communities | $ | 347,776 | $ | 357,462 | $ | 333,746 | |||||||||
AVERAGE REVENUE PER OCCUPIED HOME (6) | |||||||||||||||
Established | $ | 2,417 | $ | 2,376 | $ | 2,374 | |||||||||
Other Stabilized (4) | $ | 2,408 | $ | 2,303 | $ | 2,227 | |||||||||
Redevelopment | $ | 2,984 | $ | 2,945 | $ | 2,940 | |||||||||
ECONOMIC OCCUPANCY (6) | |||||||||||||||
Established | 95.5 | % | 95.6 | % | 95.4 | % | |||||||||
Other Stabilized (4) | 95.1 | % | 95.3 | % | 94.8 | % | |||||||||
Redevelopment | 94.9 | % | 94.5 | % | 94.7 | % | |||||||||
ESTABLISHED COMMUNITIES TURNOVER (7) | |||||||||||||||
Current year period / Prior year period | 60.8% / 60.5% | 42.4% / 41.1% | 48.1% / 44.7% | ||||||||||||
Current year period YTD / Prior year period YTD | 51.6% / 50.8% | 54.9% / 52.6% |
(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. |
(3) | See Attachment #14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
(4) | Results for these communities for quarters prior to January 1, 2016 may reflect community operations prior to stabilization, including periods of lease-up, such that occupancy levels are below what would be considered stabilized. |
(5) | NOI for Q1 2016 Other Stabilized Communities includes $20,306 of business interruption insurance proceeds related to the Edgewater casualty loss. |
(6) | For per home rent projections and Economic Occupancy for Development Communities currently under construction and/or completed in Q2 2016 see Attachment #8, 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. |
(8) | Redevelopment Communities includes seven communities containing 2,917 apartment homes that are currently under active Redevelopment as of June 30, 2016. |
CAPITALIZED COSTS | ||||
Non-Rev | ||||
Cap | Cap | Capex per | ||
Interest | Overhead | Home | ||
Q216 | $20,024 | $12,212 | $186 | |
Q116 | $20,609 | $11,881 | $174 | |
Q415 | $20,648 | $11,442 | $310 | |
Q315 | $20,356 | $10,559 | $210 | |
Q215 | $19,800 | $11,180 | $110 | |
REDEVELOPMENT COMMUNITIES (8) | ||||
Total Capital | Remaining | |||
Cost | to Invest | |||
Q216 | $142,700 | $68,000 |
Apartment Homes | Average Rental Rates (2) | Economic Occupancy | Rental Revenue ($000s) (3) | |||||||||||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||||||||||||
Q2 16 | Q2 15 | % Change | Q2 16 | Q2 15 | % Change | Q2 16 | Q2 15 | % Change | incl. Redev (4) | |||||||||||||||||||||||||||||
New England | ||||||||||||||||||||||||||||||||||||||
Boston, MA | 6,460 | $ | 2,289 | $ | 2,201 | 4.0 | % | 95.6 | % | 96.0 | % | (0.4 | )% | $ | 42,416 | $ | 40,936 | 3.6 | % | 3.6 | % | |||||||||||||||||
Fairfield-New Haven, CT | 2,315 | 2,356 | 2,258 | 4.3 | % | 95.6 | % | 96.2 | % | (0.6 | )% | 15,647 | 15,090 | 3.7 | % | 3.7 | % | |||||||||||||||||||||
New England Average | 8,775 | 2,306 | 2,217 | 4.0 | % | 95.6 | % | 96.0 | % | (0.4 | )% | 58,063 | 56,026 | 3.6 | % | 3.6 | % | |||||||||||||||||||||
Metro NY/NJ | ||||||||||||||||||||||||||||||||||||||
New York City, NY | 2,626 | 3,768 | 3,638 | 3.6 | % | 96.3 | % | 95.7 | % | 0.6 | % | 28,572 | 27,420 | 4.2 | % | 3.9 | % | |||||||||||||||||||||
New York - Suburban | 3,928 | 2,927 | 2,848 | 2.8 | % | 95.6 | % | 95.6 | % | 0.0 | % | 32,982 | 32,082 | 2.8 | % | 2.9 | % | |||||||||||||||||||||
New Jersey | 4,276 | 2,301 | 2,234 | 3.0 | % | 95.8 | % | 95.8 | % | 0.0 | % | 28,278 | 27,462 | 3.0 | % | 3.0 | % | |||||||||||||||||||||
Metro NY/NJ Average | 10,830 | 2,884 | 2,797 | 3.1 | % | 95.9 | % | 95.7 | % | 0.2 | % | 89,832 | 86,964 | 3.3 | % | 3.3 | % | |||||||||||||||||||||
Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||
Washington Metro/Baltimore, MD | 9,575 | 2,130 | 2,096 | 1.6 | % | 95.5 | % | 95.5 | % | 0.0 | % | 58,440 | 57,503 | 1.6 | % | 2.0 | % | |||||||||||||||||||||
Mid-Atlantic Average | 9,575 | 2,130 | 2,096 | 1.6 | % | 95.5 | % | 95.5 | % | 0.0 | % | 58,440 | 57,503 | 1.6 | % | 2.0 | % | |||||||||||||||||||||
Pacific Northwest | ||||||||||||||||||||||||||||||||||||||
Seattle, WA | 3,727 | 2,086 | 1,949 | 7.0 | % | 95.0 | % | 95.5 | % | (0.5 | )% | 22,164 | 20,817 | 6.5 | % | 6.5 | % | |||||||||||||||||||||
Pacific Northwest Average | 3,727 | 2,086 | 1,949 | 7.0 | % | 95.0 | % | 95.5 | % | (0.5 | )% | 22,164 | 20,817 | 6.5 | % | 6.5 | % | |||||||||||||||||||||
Northern California | ||||||||||||||||||||||||||||||||||||||
San Jose, CA | 3,792 | 2,656 | 2,447 | 8.5 | % | 96.1 | % | 95.9 | % | 0.2 | % | 29,023 | 26,704 | 8.7 | % | 8.3 | % | |||||||||||||||||||||
Oakland-East Bay, CA | 3,028 | 2,420 | 2,203 | 9.9 | % | 95.9 | % | 95.1 | % | 0.8 | % | 21,085 | 19,051 | 10.7 | % | 11.1 | % | |||||||||||||||||||||
San Francisco, CA | 3,167 | 3,292 | 3,047 | 8.0 | % | 94.4 | % | 95.4 | % | (1.0 | )% | 29,512 | 27,569 | 7.0 | % | 7.0 | % | |||||||||||||||||||||
Northern California Average | 9,987 | 2,786 | 2,563 | 8.7 | % | 95.4 | % | 95.5 | % | (0.1 | )% | 79,620 | 73,324 | 8.6 | % | 8.6 | % | |||||||||||||||||||||
Southern California | ||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | 8,196 | 2,134 | 1,985 | 7.5 | % | 95.4 | % | 95.8 | % | (0.4 | )% | 50,041 | 46,745 | 7.1 | % | 7.0 | % | |||||||||||||||||||||
Orange County, CA | 2,657 | 2,030 | 1,915 | 6.0 | % | 95.3 | % | 95.7 | % | (0.4 | )% | 15,430 | 14,606 | 5.6 | % | 5.6 | % | |||||||||||||||||||||
San Diego, CA | 1,078 | 1,994 | 1,864 | 7.0 | % | 94.3 | % | 94.6 | % | (0.3 | )% | 6,085 | 5,704 | 6.7 | % | 8.2 | % | |||||||||||||||||||||
Southern California Average | 11,931 | 2,098 | 1,959 | 7.1 | % | 95.3 | % | 95.7 | % | (0.4 | )% | 71,556 | 67,055 | 6.7 | % | 6.9 | % | |||||||||||||||||||||
Average/Total Established | 54,825 | $ | 2,417 | $ | 2,298 | 5.2 | % | 95.5 | % | 95.7 | % | (0.2 | )% | $ | 379,675 | $ | 361,689 | 5.0 | % | 5.1 | % |
(1) | Established Communities are communities with Stabilized Operations as of January 1, 2015 such that a comparison of Q2 2015 to Q2 2016 is meaningful. |
(2) | Reflects the effect of concessions amortized over the average lease term. |
(3) | With concessions reflected on a cash basis, rental revenue from Established Communities increased 4.7% from Q2 2015 to Q2 2016. |
(4) | Represents the change in rental revenue if the Company were to include planned, current and previously completed Redevelopment Communities as part of its Established Communities portfolio. |
Apartment Homes | Average Rental Rates (1) | Economic Occupancy | Rental Revenue ($000s) | |||||||||||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||||||||||||
Q2 16 | Q1 16 | % Change | Q2 16 | Q1 16 | % Change | Q2 16 | Q1 16 | % Change | incl. Redev (2) | |||||||||||||||||||||||||||||
New England | ||||||||||||||||||||||||||||||||||||||
Boston, MA | 6,460 | $ | 2,289 | $ | 2,275 | 0.6 | % | 95.6 | % | 95.2 | % | 0.4 | % | $ | 42,416 | $ | 41,972 | 1.1 | % | 1.2 | % | |||||||||||||||||
Fairfield-New Haven, CT | 2,315 | 2,356 | 2,324 | 1.4 | % | 95.6 | % | 95.2 | % | 0.4 | % | 15,647 | 15,361 | 1.9 | % | 1.9 | % | |||||||||||||||||||||
New England Average | 8,775 | 2,306 | 2,287 | 0.8 | % | 95.6 | % | 95.2 | % | 0.4 | % | 58,063 | 57,333 | 1.3 | % | 1.4 | % | |||||||||||||||||||||
Metro NY/NJ | ||||||||||||||||||||||||||||||||||||||
New York City, NY | 2,626 | 3,768 | 3,716 | 1.4 | % | 96.3 | % | 95.5 | % | 0.8 | % | 28,572 | 27,964 | 2.2 | % | 1.8 | % | |||||||||||||||||||||
New York - Suburban | 3,928 | 2,927 | 2,862 | 2.3 | % | 95.6 | % | 95.2 | % | 0.4 | % | 32,982 | 32,119 | 2.7 | % | 2.7 | % | |||||||||||||||||||||
New Jersey | 4,276 | 2,301 | 2,248 | 2.4 | % | 95.8 | % | 95.9 | % | (0.1 | )% | 28,278 | 27,644 | 2.3 | % | 2.3 | % | |||||||||||||||||||||
Metro NY/NJ Average | 10,830 | 2,884 | 2,827 | 2.0 | % | 95.9 | % | 95.5 | % | 0.4 | % | 89,832 | 87,727 | 2.4 | % | 2.2 | % | |||||||||||||||||||||
Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||
Washington Metro/Baltimore, MD | 9,575 | 2,130 | 2,100 | 1.4 | % | 95.5 | % | 95.3 | % | 0.2 | % | 58,440 | 57,524 | 1.6 | % | 1.7 | % | |||||||||||||||||||||
Mid-Atlantic Average | 9,575 | 2,130 | 2,100 | 1.4 | % | 95.5 | % | 95.3 | % | 0.2 | % | 58,440 | 57,524 | 1.6 | % | 1.7 | % | |||||||||||||||||||||
Pacific Northwest | ||||||||||||||||||||||||||||||||||||||
Seattle, WA | 3,727 | 2,086 | 2,016 | 3.5 | % | 95.0 | % | 95.7 | % | (0.7 | )% | 22,164 | 21,567 | 2.8 | % | 2.8 | % | |||||||||||||||||||||
Pacific Northwest Average | 3,727 | 2,086 | 2,016 | 3.5 | % | 95.0 | % | 95.7 | % | (0.7 | )% | 22,164 | 21,567 | 2.8 | % | 2.8 | % | |||||||||||||||||||||
Northern California | ||||||||||||||||||||||||||||||||||||||
San Jose, CA | 3,792 | 2,656 | 2,619 | 1.4 | % | 96.1 | % | 96.1 | % | 0.0 | % | 29,023 | 28,625 | 1.4 | % | 1.1 | % | |||||||||||||||||||||
Oakland-East Bay, CA | 3,028 | 2,420 | 2,363 | 2.4 | % | 95.9 | % | 95.7 | % | 0.2 | % | 21,085 | 20,544 | 2.6 | % | 2.9 | % | |||||||||||||||||||||
San Francisco, CA | 3,167 | 3,292 | 3,239 | 1.6 | % | 94.4 | % | 94.9 | % | (0.5 | )% | 29,512 | 29,227 | 1.0 | % | 1.0 | % | |||||||||||||||||||||
Northern California Average | 9,987 | 2,786 | 2,738 | 1.8 | % | 95.4 | % | 95.6 | % | (0.2 | )% | 79,620 | 78,396 | 1.6 | % | 1.5 | % | |||||||||||||||||||||
Southern California | ||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | 8,196 | 2,134 | 2,098 | 1.7 | % | 95.4 | % | 96.8 | % | (1.4 | )% | 50,041 | 49,918 | 0.2 | % | 0.4 | % | |||||||||||||||||||||
Orange County, CA | 2,657 | 2,030 | 1,997 | 1.7 | % | 95.3 | % | 95.9 | % | (0.6 | )% | 15,430 | 15,269 | 1.1 | % | 1.1 | % | |||||||||||||||||||||
San Diego, CA | 1,078 | 1,994 | 1,972 | 1.1 | % | 94.3 | % | 94.4 | % | (0.1 | )% | 6,085 | 6,017 | 1.1 | % | 1.5 | % | |||||||||||||||||||||
Southern California Average | 11,931 | 2,098 | 2,064 | 1.6 | % | 95.3 | % | 96.4 | % | (1.1 | )% | 71,556 | 71,204 | 0.5 | % | 0.7 | % | |||||||||||||||||||||
Average/Total Established | 54,825 | $ | 2,417 | $ | 2,376 | 1.7 | % | 95.5 | % | 95.6 | % | (0.1 | )% | $ | 379,675 | $ | 373,751 | 1.6 | % | 1.6 | % |
(1) | Reflects the effect of concessions amortized over the average lease term. |
(2) | Represents the change in rental revenue if the Company were to include planned, current and previously completed Redevelopment Communities as part of its Established Communities portfolio. |
Apartment Homes | Average Rental Rates (2) | Economic Occupancy | Rental Revenue ($000's) (3) (4) | |||||||||||||||||||||||||||||||||||
Year to Date 2016 | Year to Date 2015 | % Change | Year to Date 2016 | Year to Date 2015 | % Change | Year to Date 2016 | Year to Date 2015 | % Change | % Change incl. Redev (4) | |||||||||||||||||||||||||||||
New England | ||||||||||||||||||||||||||||||||||||||
Boston, MA | 6,460 | $ | 2,282 | $ | 2,180 | 4.7 | % | 95.4 | % | 95.7 | % | (0.3 | )% | $ | 84,388 | $ | 80,849 | 4.4 | % | 4.4 | % | |||||||||||||||||
Fairfield-New Haven, CT | 2,315 | 2,340 | 2,230 | 4.9 | % | 95.4 | % | 96.3 | % | (0.9 | )% | 31,007 | 29,827 | 4.0 | % | 4.0 | % | |||||||||||||||||||||
New England Average | 8,775 | 2,297 | 2,193 | 4.7 | % | 95.4 | % | 95.8 | % | (0.4 | )% | 115,395 | 110,676 | 4.3 | % | 4.3 | % | |||||||||||||||||||||
Metro NY/NJ | ||||||||||||||||||||||||||||||||||||||
New York City, NY | 2,626 | 3,742 | 3,609 | 3.7 | % | 95.9 | % | 95.3 | % | 0.6 | % | 56,537 | 54,206 | 4.3 | % | 4.0 | % | |||||||||||||||||||||
New York - Suburban | 3,928 | 2,894 | 2,816 | 2.8 | % | 95.4 | % | 95.7 | % | (0.3 | )% | 65,101 | 63,505 | 2.5 | % | 2.7 | % | |||||||||||||||||||||
New Jersey | 4,276 | 2,275 | 2,195 | 3.6 | % | 95.8 | % | 96.3 | % | (0.5 | )% | 55,922 | 54,240 | 3.1 | % | 3.1 | % | |||||||||||||||||||||
Metro NY/NJ Average | 10,830 | 2,855 | 2,762 | 3.4 | % | 95.7 | % | 95.8 | % | (0.1 | )% | 177,560 | 171,951 | 3.3 | % | 3.3 | % | |||||||||||||||||||||
Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||
Washington Metro/Baltimore, MD | 9,575 | 2,115 | 2,081 | 1.6 | % | 95.4 | % | 95.6 | % | (0.2 | )% | 115,964 | 114,322 | 1.4 | % | 1.6 | % | |||||||||||||||||||||
Mid-Atlantic Average | 9,575 | 2,115 | 2,081 | 1.6 | % | 95.4 | % | 95.6 | % | (0.2 | )% | 115,964 | 114,322 | 1.4 | % | 1.6 | % | |||||||||||||||||||||
Pacific Northwest | ||||||||||||||||||||||||||||||||||||||
Seattle, WA | 3,727 | 2,051 | 1,918 | 6.9 | % | 95.4 | % | 95.8 | % | (0.4 | )% | 43,731 | 41,061 | 6.5 | % | 6.5 | % | |||||||||||||||||||||
Pacific Northwest Average | 3,727 | 2,051 | 1,918 | 6.9 | % | 95.4 | % | 95.8 | % | (0.4 | )% | 43,731 | 41,061 | 6.5 | % | 6.5 | % | |||||||||||||||||||||
Northern California | ||||||||||||||||||||||||||||||||||||||
San Jose, CA | 3,792 | 2,637 | 2,401 | 9.8 | % | 96.1 | % | 96.3 | % | (0.2 | )% | 57,648 | 52,616 | 9.6 | % | 9.2 | % | |||||||||||||||||||||
Oakland-East Bay, CA | 3,028 | 2,391 | 2,164 | 10.5 | % | 95.8 | % | 95.5 | % | 0.3 | % | 41,629 | 37,580 | 10.8 | % | 11.2 | % | |||||||||||||||||||||
San Francisco, CA | 3,167 | 3,265 | 3,006 | 8.6 | % | 94.7 | % | 95.9 | % | (1.2 | )% | 58,739 | 54,670 | 7.4 | % | 7.4 | % | |||||||||||||||||||||
Northern California Average | 9,987 | 2,762 | 2,522 | 9.5 | % | 95.5 | % | 95.9 | % | (0.4 | )% | 158,016 | 144,866 | 9.1 | % | 9.1 | % | |||||||||||||||||||||
Southern California | ||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | 8,196 | 2,116 | 1,964 | 7.7 | % | 96.1 | % | 96.2 | % | (0.1 | )% | 99,959 | 92,889 | 7.6 | % | 7.5 | % | |||||||||||||||||||||
Orange County, CA | 2,657 | 2,014 | 1,898 | 6.1 | % | 95.6 | % | 95.8 | % | (0.2 | )% | 30,699 | 28,991 | 5.9 | % | 5.9 | % | |||||||||||||||||||||
San Diego, CA | 1,078 | 1,983 | 1,849 | 7.2 | % | 94.4 | % | 94.7 | % | (0.3 | )% | 12,102 | 11,319 | 6.9 | % | 9.0 | % | |||||||||||||||||||||
Southern California Average | 11,931 | 2,081 | 1,938 | 7.4 | % | 95.8 | % | 96.0 | % | (0.2 | )% | 142,760 | 133,199 | 7.2 | % | 7.4 | % | |||||||||||||||||||||
Average/Total Established | 54,825 | $ | 2,397 | $ | 2,274 | 5.4 | % | 95.6 | % | 95.8 | % | (0.2 | )% | $ | 753,426 | $ | 716,075 | 5.2 | % | 5.3 | % |
(1) | Established Communities are communities with Stabilized Operations as of January 1, 2015 such that a comparison of 2015 to 2016 is meaningful. |
(2) | Reflects the effect of concessions amortized over the average lease term. |
(3) | With concessions reflected on a cash basis, rental revenue from Established Communities increased 5.0% between years. |
(4) | Represents the change in rental revenue if the Company were to include planned, current and previously completed Redevelopment Communities as part of its Established Communities portfolio. |
Q2 | Q2 | Q2 2016 % of | YTD | YTD | YTD 2016 % of | |||||||||||||||||||||||
2016 | 2015 | % Change | Total Opex | 2016 | 2015 | % Change | Total Opex | |||||||||||||||||||||
Property taxes (2) | $ | 38,188 | $ | 35,034 | 9.0 | % | 33.9 | % | $ | 76,012 | $ | 71,803 | 5.9 | % | 34.1 | % | ||||||||||||
Payroll | 24,997 | 24,680 | 1.3 | % | 22.2 | % | 50,322 | 49,411 | 1.8 | % | 22.6 | % | ||||||||||||||||
Repairs & maintenance (3) | 19,738 | 19,028 | 3.7 | % | 17.5 | % | 36,413 | 35,614 | 2.2 | % | 16.3 | % | ||||||||||||||||
Office operations (4) | 13,039 | 12,193 | 6.9 | % | 11.6 | % | 25,691 | 24,069 | 6.7 | % | 11.5 | % | ||||||||||||||||
Utilities (5) | 9,516 | 9,673 | (1.6 | )% | 8.5 | % | 20,668 | 23,137 | (10.7 | )% | 9.3 | % | ||||||||||||||||
Insurance (6) | 4,342 | 4,225 | 2.8 | % | 3.9 | % | 8,793 | 8,142 | 8.0 | % | 3.9 | % | ||||||||||||||||
Marketing (7) | 2,755 | 2,662 | 3.5 | % | 2.4 | % | 5,097 | 5,603 | (9.0 | )% | 2.3 | % | ||||||||||||||||
Total Established Communities Operating Expenses (8) | $ | 112,575 | $ | 107,495 | 4.7 | % | 100.0 | % | $ | 222,996 | $ | 217,779 | 2.4 | % | 100.0 | % |
(1) | See Attachment #14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
(2) | Property taxes increased for the three and six months ended June 30, 2016 over the prior year periods primarily due to increases in assessments in the current year, as well as successful appeals in the prior year periods in the Company's West Coast markets. |
(3) | Repairs and maintenance increased for the three and six months ended June 30, 2016 over the prior year periods primarily due to the timing of various maintenance projects. The increase for the six months ended June 30, 2016 over the prior year period is partially offset by costs related to the severe winter storms in the Company's Northeast markets that occurred in the prior year period. |
(4) | Office operations includes administrative costs, land lease expense, bad debt expense and association and license fees. The increase for the three and six months ended June 30, 2016 over the prior year periods is primarily due to an increase in bad debt expense. The increase for the six months ended June 30, 2016 over the prior year period is partially offset by a decrease in state franchise taxes. |
(5) | Utilities represents aggregate utility costs, net of resident reimbursements. The decrease for the three and six months ended June 30, 2016 from the prior year periods is primarily due to lower energy consumption and lower energy rates, partially offset by an increase in water and sewer expenses, net of resident reimbursements. The decrease is also partially attributable to the Company’s energy and water efficiency projects as well as lower fees paid to third-party utility billing services. |
(6) | Insurance costs consist of premiums, expected claims activity and associated reductions from receipt of claims recoveries. The increase for the three and six months ended June 30, 2016 over the prior year periods is primarily due to increased general liability insurance premiums, as well as the timing of claims and related recoveries. 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 represent amounts incurred for electronic and print advertising, as well as prospect management and incentive costs. The increase for the three months ended June 30, 2016 over the prior year period is primarily due to an increase in internet advertising. The decrease for the six months ended June 30, 2016 from the prior year period is primarily due to a decrease in customer service incentives that were related to the severe winter storms in the Company's Northeast markets that occurred during the prior year period, partially offset by an increase in internet advertising. |
(8) | Operating expenses for Established Communities excludes indirect costs for off-site corporate-level property management related expenses and other support-related expenses. |
Community Information | Number | Total | Schedule | Avg Rent | % | % | % | % | |||||||||||||||||||||||||
of | Capital | Full Qtr | Per | Complete | Leased | Occupied | Economic | ||||||||||||||||||||||||||
Apt | Cost | Initial | Stabilized | Home | Occ. | ||||||||||||||||||||||||||||
Development Name | Location | Homes | (millions) (1) | Start | Occupancy | Complete | Ops (1) | (1) | As of July 15, 2016 | Q2 '16 (1) | |||||||||||||||||||||||
Wholly-Owned Communities Under Construction: | |||||||||||||||||||||||||||||||||
1. | Avalon Dublin Station II | Dublin, CA | 252 | $ | 84.6 | Q2 2014 | Q4 2015 | Q3 2016 | Q4 2016 | $2,750 | 100.0 | % | 86.9 | % | 81.0 | % | 52.7 | % | |||||||||||||||
2. | Avalon Willoughby Square/AVA DoBro | Brooklyn, NY | 826 | 456.3 | Q3 2013 | Q4 2015 | Q4 2016 | Q3 2017 | 3,735 | 61.9 | % | 47.5 | % | 37.7 | % | 31.8 | % | ||||||||||||||||
3. | Avalon Huntington Beach (2) | Huntington Beach, CA | 378 | 120.3 | Q2 2014 | Q1 2016 | Q1 2017 | Q3 2017 | 2,380 | 39.7 | % | 34.9 | % | 25.9 | % | 10.9 | % | ||||||||||||||||
4. | Avalon Esterra Park (2) | Redmond, WA | 482 | 137.8 | Q3 2014 | Q1 2016 | Q2 2017 | Q4 2017 | 2,280 | 34.9 | % | 30.5 | % | 23.4 | % | 7.4 | % | ||||||||||||||||
5. | Avalon Alderwood II | Lynnwood, WA | 124 | 26.5 | Q1 2015 | Q2 2016 | Q3 2016 | Q4 2016 | 1,995 | 72.6 | % | 53.2 | % | 39.5 | % | 11.4 | % | ||||||||||||||||
6. | Avalon Laurel | Laurel, MD | 344 | 72.4 | Q2 2015 | Q2 2016 | Q1 2017 | Q3 2017 | 1,850 | 40.7 | % | 21.5 | % | 15.4 | % | 3.1 | % | ||||||||||||||||
7. | Avalon Quincy | Quincy, MA | 395 | 95.3 | Q2 2015 | Q2 2016 | Q2 2017 | Q4 2017 | 2,165 | 17.2 | % | 18.0 | % | 7.1 | % | 0.7 | % | ||||||||||||||||
8. | Avalon Princeton | Princeton, NJ | 280 | 95.5 | Q4 2014 | Q3 2016 | Q2 2017 | Q4 2017 | 2,890 | — | 7.1 | % | — | — | |||||||||||||||||||
9. | Avalon Hunt Valley | Hunt Valley, MD | 332 | 74.0 | Q1 2015 | Q3 2016 | Q2 2017 | Q4 2017 | 1,795 | — | — | — | — | ||||||||||||||||||||
10. | Avalon West Hollywood (2) | West Hollywood, CA | 294 | 150.0 | Q2 2014 | Q4 2016 | Q3 2017 | Q2 2018 | 3,495 | — | — | — | — | ||||||||||||||||||||
11. | Avalon North Station | Boston, MA | 503 | 257.9 | Q3 2014 | Q4 2016 | Q4 2017 | Q2 2018 | 3,575 | — | — | — | — | ||||||||||||||||||||
12. | Avalon Great Neck | Great Neck, NY | 191 | 78.9 | Q2 2015 | Q1 2017 | Q2 2017 | Q4 2017 | 3,570 | — | — | — | — | ||||||||||||||||||||
13. | AVA NoMa | Washington, D.C. | 438 | 148.3 | Q2 2015 | Q2 2017 | Q1 2018 | Q3 2018 | 2,535 | — | — | — | — | ||||||||||||||||||||
14. | Avalon Newcastle I (2) | Newcastle, WA | 378 | 110.1 | Q3 2015 | Q4 2016 | Q4 2017 | Q2 2018 | 2,245 | — | — | — | — | ||||||||||||||||||||
15. | Avalon Chino Hills | Chino Hills, CA | 331 | 96.9 | Q3 2015 | Q4 2016 | Q4 2017 | Q2 2018 | 2,080 | — | — | — | — | ||||||||||||||||||||
16. | Avalon Sheepshead Bay (3) | Brooklyn, NY | 180 | 86.4 | Q3 2015 | Q3 2017 | Q4 2017 | Q2 2018 | 3,255 | — | — | — | — | ||||||||||||||||||||
17. | Avalon Maplewood | Maplewood, NJ | 235 | 66.3 | Q4 2015 | Q3 2017 | Q1 2018 | Q3 2018 | 2,270 | — | — | — | — | ||||||||||||||||||||
18. | Avalon Rockville Centre II | Rockville Centre, NY | 165 | 57.8 | Q4 2015 | Q3 2017 | Q4 2017 | Q2 2018 | 2,785 | — | — | — | — | ||||||||||||||||||||
19. | AVA Wheaton | Wheaton, MD | 319 | 75.6 | Q4 2015 | Q2 2017 | Q1 2018 | Q3 2018 | 1,870 | — | — | — | — | ||||||||||||||||||||
20. | Avalon Dogpatch | San Francisco, CA | 326 | 203.4 | Q4 2015 | Q4 2017 | Q3 2018 | Q1 2019 | 4,450 | — | — | — | — | ||||||||||||||||||||
21. | Avalon Easton | Easton, MA | 290 | 64.0 | Q1 2016 | Q2 2017 | Q1 2018 | Q3 2018 | 1,990 | — | — | — | — | ||||||||||||||||||||
22. | Avalon Somers | Somers, NY | 152 | 45.1 | Q2 2016 | Q3 2017 | Q4 2017 | Q1 2018 | 2,615 | — | — | — | — | ||||||||||||||||||||
Subtotal / Weighted Average | 7,215 | $ | 2,603.4 | $2,725 | |||||||||||||||||||||||||||||
Wholly-Owned Communities Completed this Quarter: | |||||||||||||||||||||||||||||||||
1. | AVA Capitol Hill (2) | Seattle, WA | 249 | $ | 81.5 | Q1 2014 | Q4 2015 | Q2 2016 | Q4 2016 | $2,395 | 100.0 | % | 93.6 | % | 92.0 | % | 73.4 | % | |||||||||||||||
2. | Avalon Irvine III | Irvine, CA | 156 | 55.7 | Q2 2014 | Q1 2016 | Q2 2016 | Q4 2016 | 2,395 | 100.0 | % | 87.2 | % | 85.9 | % | 64.6 | % | ||||||||||||||||
3. | Avalon Union | Union, NJ | 202 | 50.3 | Q4 2014 | Q4 2015 | Q2 2016 | Q3 2016 | 2,460 | 100.0 | % | 98.5 | % | 97.0 | % | 72.7 | % | ||||||||||||||||
Subtotal / Weighted Average | 607 | $ | 187.5 | $2,415 | |||||||||||||||||||||||||||||
Total / Weighted Average | 7,822 | $ | 2,790.9 | $2,705 | |||||||||||||||||||||||||||||
Weighted Average Projected NOI as a % of Total Capital Cost (1) | 6.3% | ||||||||||||||||||||||||||||||||
Community Information | Number | Total | Schedule | ||||||||||||||||||||||||||||||
of | Capital | ||||||||||||||||||||||||||||||||
Apt | Cost | Initial | |||||||||||||||||||||||||||||||
Development Name | Location | Homes | (millions) (1) | Occupancy | Complete | ||||||||||||||||||||||||||||
Joint Venture Community Under Construction: | |||||||||||||||||||||||||||||||||
1. | AVA North Point (4) | Cambridge, MA | 265 | $ | 113.9 | Q1 2018 | Q4 2018 | ||||||||||||||||||||||||||
Asset Cost Basis (millions) (5): | |||||||||||||||||||||||||||||||||
Total Capital Cost, under construction and completed | $ | 3,290.9 | |||||||||||||||||||||||||||||||
Total Capital Cost, disbursed to date | (2,360.4 | ) | |||||||||||||||||||||||||||||||
Total Capital Cost, remaining to invest | $ | 930.5 |
(1) | See Attachment #14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
(2) | Developments containing at least 10,000 square feet of retail space include AVA Capitol Hill (16,000 sf), Avalon Huntington Beach (10,000 sf), Avalon Esterra Park (17,000 sf), Avalon West Hollywood (32,000 sf) and Avalon Newcastle I (15,000 sf). |
(3) | The Company is developing this project with a private development partner. The Company will own the rental portion of the development on floors 3-19 and the partner will own the for-sale condominium portion on floors 20-30 of the development. Information in this attachment represents only the Company's portion of the project. The Company is providing a construction loan to the development partner, expected to be $48.8 million, which together with the partner's contributed equity is expected to fund the condominium portion of the project. |
(4) | The Company is developing this project within a joint venture that was formed in July 2016, in which the Company owns a 55.0% interest. Total Capital Cost reflects the underlying land at the assigned contribution value upon formation of the venture. |
(5) | Includes the communities presented on this attachment plus five additional communities with 1,310 apartment homes representing $437.4 million in Total Capital Costs which has completed construction but not yet achieved Stabilized Operations for the full quarter. Q2 2016 NOI for these 31 communities was $8.8 million. AVA North Point is included at AVB share based on the GAAP basis for the joint venture. |
This chart contains forward-looking statements. Please see the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company's Supplemental Operating and Financial Data for the second quarter of 2016. |
DEVELOPMENT RIGHTS (1) |
Estimated | Total Capital | |||||||||
# of Rights | Number | Cost (1) (2) | ||||||||
of Homes | (millions) | |||||||||
Development Rights as of 12/31/2015 | 32 | 9,634 | $ | 3,418 | ||||||
Q1 2016 | ||||||||||
Q1 2016 Additions | 1 | 1,100 | $ | 550 | ||||||
Q1 2016 Construction starts | (1 | ) | (290 | ) | (64 | ) | ||||
Q1 2016 Adjustments to existing Development Rights | (2 | ) | (699 | ) | (184 | ) | ||||
Development Rights as of 3/31/2016 | 30 | 9,745 | 3,720 | |||||||
Q2 2016 | ||||||||||
Q2 2016 Additions | 5 | 2,060 | $ | 684 | ||||||
Q2 2016 Construction starts | (2 | ) | (417 | ) | (139 | ) | ||||
Q2 2016 Adjustments to existing Development Rights | (3 | ) | (936 | ) | (253 | ) | ||||
Development Rights as of 6/30/2016 | 30 | 10,452 | $ | 4,012 | ||||||
Current Development Rights by Region as of June 30, 2016 | ||||||||||
New England | 5 | 1,365 | $ | 419 | ||||||
Metro NY/NJ | 12 | 4,678 | 1,838 | |||||||
Mid-Atlantic | 3 | 1,066 | 307 | |||||||
Pacific Northwest | 4 | 1,194 | 375 | |||||||
Northern California | 4 | 978 | 478 | |||||||
Southern California | 2 | 1,171 | 595 | |||||||
Total | 30 | 10,452 | $ | 4,012 |
(1) | See Attachment #14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
(2) | As of June 30, 2016, the Company owns land (including pursuit costs) in the amount of $512 million for the future development of six of the 30 Development Rights. Construction is expected to commence during the next 12 months on five of the six Development Rights for which land is owned with a total basis of $487 million. In addition, one Development Right is an additional development phase of an existing stabilized operating community that the Company owns, and would be constructed on land currently associated with that operating community. |
This chart contains forward-looking statements. Please see the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company's Supplemental Operating and Financial Data for the second quarter of 2016. |
Company | # of | NOI (3) | Debt | |||||||||||||||||||
# of | Ownership | Apartment | YTD | Principal | Interest | |||||||||||||||||
Unconsolidated Real Estate Investments (1) | Communities | Percentage (2) | Homes | Q2 2016 | 2016 | Amount (3) | Rate (4) | |||||||||||||||
Fund II | 4 | 31.3% | (5) | 1,576 | $ | 6,685 | $ | 14,836 | $ | 158,116 | 4.40 | % | ||||||||||
U.S. Fund | 7 | 28.6% | 1,269 | 6,845 | 14,131 | 276,778 | 3.43 | % | ||||||||||||||
AC JV | 3 | 20.0% | 921 | 4,634 | 9,221 | 162,300 | (6) | 6.00 | % | |||||||||||||
MVP I, LLC | 1 | 25.0% | 313 | 2,856 | 5,736 | 103,000 | 3.24 | % | ||||||||||||||
Brandywine Apartments of Maryland, LLC | 1 | 28.7% | 305 | 1,386 | 2,679 | 23,573 | 3.40 | % | ||||||||||||||
Total Unconsolidated Real Estate Investments | 16 | 4,384 | $ | 22,406 | $ | 46,603 | $ | 723,767 | 4.19 | % |
(1) | Excludes development joint ventures and Avalon Clarendon, which the Company acquired in May 2016. To facilitate the acquisition, the Company formed a joint venture under which the Company acquired all of the rights and obligations associated with the residential component of a larger mixed-use development. NOI excludes $731 in Q2 and YTD 2016 from Avalon Clarendon. The Company and its venture partner expect to complete a vertical subdivision of the property in Q3 2016, at which time the Company will report the operating results of Avalon Clarendon as part of its consolidated results of operations. |
(2) | Company ownership percentages do not reflect the impact of promoted interests. |
(3) | NOI and outstanding indebtedness are presented at 100% ownership. NOI includes $2,155 in Q2 2016 from one Fund II community and $6,288 in YTD 2016 from two Fund II communities and two U.S. Fund communities disposed of during the six months ended June 30, 2016, and 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, 2016. |
(5) | Upon achievement of a threshold return, the Company has a right to incentive distributions for its promoted interest representing the first 20% of available cash flow. In July 2016, Fund II distributed the proceeds from the sale of a community, of which the Company received $35,947. The Company’s share of the distribution included $5,014 for an incentive distribution, of which $3,447 was recognized as income from the Company’s promoted interest in Q2 2016. |
(6) | Borrowing is comprised of four mortgage loans made by the equity investors in the venture in proportion to their equity interests. |
DEBT COMPOSITION AND MATURITIES | SELECT DEBT METRICS (5) | ||||||||||||||||
Average | |||||||||||||||||
Interest | Principal Amortization and Maturities (1) (2) | Net Debt-to-Core EBITDA | |||||||||||||||
Debt Composition (1) | Amount (2) | Rate (3) | 5.1x | ||||||||||||||
Conventional Debt | 2016 | $ | 258,191 | ||||||||||||||
Long-term, fixed rate | $ | 5,539,169 | 2017 | $ | 976,857 | Interest Coverage | 6.9x | ||||||||||
Long-term, variable rate | 390,226 | 2018 | $ | 92,906 | |||||||||||||
Variable rate facility (4) | — | 2019 | $ | 593,125 | Unencumbered NOI | 80 | % | ||||||||||
Subtotal, Conventional | 5,929,395 | 4.1% | 2020 | $ | 772,353 | ||||||||||||
Tax-Exempt Debt | |||||||||||||||||
Long-term, fixed rate | 116,595 | ||||||||||||||||
Long-term, variable rate | 818,995 | ||||||||||||||||
Subtotal, Tax-Exempt | 935,590 | 2.5% | |||||||||||||||
Total Debt | $ | 6,864,985 | 3.9% |
DEBT COVENANT COMPLIANCE (5) | ||||||||||
Unsecured Line of Credit Covenants | June 30, 2016 | Requirement | ||||||||
Total Outstanding Indebtedness to Capitalization Value (6) | 28.8 | % | < | 60% | ||||||
Combined EBITDA to Combined Debt Service | 5.90x | > | 1.50x | |||||||
Unsecured Indebtedness to Unencumbered Asset Value | 20.0 | % | < | 65% | ||||||
Secured Indebtedness to Capitalization Value (6) | 10.6 | % | < | 40% | ||||||
Unsecured Senior Notes Covenants | June 30, 2016 | Requirement | ||||||||
Total Outstanding Indebtedness to Total Assets (7) | 36.6 | % | < | 60% | ||||||
Secured Indebtedness to Total Assets (7) | 12.2 | % | < | 40% | ||||||
Unencumbered Assets to Unsecured Indebtedness | 381.6 | % | > | 150% | ||||||
Consolidated Income Available for Debt Service to the Annual Service Charge | 7.18x | > | 1.50x |
(1) | The Company has the option to extend the maturity date of $692,191 principal amount of indebtedness currently scheduled to mature in 2017. The extension option provides the Company the ability, for a fee, to elect a revised maturity of one or two years beyond the current maturity. |
(2) | Balances outstanding and amounts due at maturity exclude any associated issuance discount, mark-to-market premiums and deferred financing costs. |
(3) | Rates are as of June 30, 2016 and include costs of financing such as credit enhancement fees, trustees' fees, the impact of interest rate hedges and mark-to-market adjustments. |
(4) | Represents the Company's $1.5 billion unsecured credit facility, under which no amounts were outstanding at June 30, 2016. |
(5) | See Attachment #14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
(6) | Capitalization Value represents the Company’s Combined EBITDA for operating communities that the Company has owned for the six months ended June 30, 2016, 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 #14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
(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 #14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
Weighted Average | Accumulated | Weighted Average | Weighted Average | |||||||||||||||||||
Number of | Investment Period | Gross Sales | Depreciation | Economic | Initial Year Mkt. | Unleveraged | ||||||||||||||||
Communities Sold | (Years) | Price | GAAP Gain | and Other | Gain (Loss) (2) | Cap Rate (2) | IRR (2) | |||||||||||||||
2007- 2011: | ||||||||||||||||||||||
24 Communities (3) (4) (5) | 11.8 | $ | 1,324,465 | $ | 664,998 | $ | 158,213 | $ | 506,785 | 5.4% | 14.1% | |||||||||||
2012: | ||||||||||||||||||||||
4 Communities (6) | 13.9 | $ | 268,250 | $ | 146,311 | $ | 50,815 | $ | 95,496 | 5.3% | 10.6% | |||||||||||
2013: | ||||||||||||||||||||||
8 Communities (7) | 13.4 | $ | 932,800 | $ | 278,231 | $ | 94,790 | $ | 183,441 | 4.9% | 12.8% | |||||||||||
2014: | ||||||||||||||||||||||
4 Communities (7) | 10.9 | $ | 296,200 | $ | 106,138 | $ | 38,367 | $ | 67,771 | 5.0% | 12.6% | |||||||||||
2015: | ||||||||||||||||||||||
3 Communities | 11.5 | $ | 265,500 | $ | 115,625 | $ | 47,451 | $ | 68,174 | 5.3% | 10.1% | |||||||||||
2016: | ||||||||||||||||||||||
2 Communities | 17.4 | $ | 115,350 | $ | 82,511 | $ | 32,333 | $ | 50,178 | 5.2% | 12.7% | |||||||||||
2007 - 2016 Total | ||||||||||||||||||||||
45 Communities | 12.5 | $ | 3,202,565 | $ | 1,393,814 | $ | 421,969 | $ | 971,845 | 5.2% | 13.1% |
(1) | Provides disposition activity for consolidated communities for the most recent 10 year period. |
(2) | See Attachment #14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
(3) | 2009 and 2010 GAAP and Economic Gains include the recognition of approximately $2,770 and $2,675, respectively, in deferred gains for prior year dispositions, recognition of which occurred in conjunction with settlement of associated legal matters. |
(4) | 2010 Gross Sales Price and GAAP and Economic Gains include the disposition of Avalon on the Sound, a consolidated community that was previously held in a joint venture for a portion of the Company's investment period. This community is not included in the calculation of Weighted Average Investment Period, Weighted Average Initial Year Market Cap Rate, or Weighted Average Unleveraged IRR. |
(5) | 2011 results exclude the Company's proportionate GAAP gain of $7,675 associated with an asset exchange. |
(6) | 2012 GAAP and Economic Gains include the recognition of approximately $1,225 and $496, respectively, in deferred gains for prior year dispositions and gains for current year dispositions, which occurred in conjunction with settlement of associated legal matters. |
(7) | 2013 and 2014 results include the sale of four and two Archstone communities, respectively, for Gross Sales Price and Weighted Average Initial Year Market Cap Rate, but exclude these dispositions for other metrics due to the short investment period. |
Key Outputs (1) | ||||
Annual 2016 | ||||
July 2016 | February 2016 | |||
Outlook | Outlook | |||
EPS | $7.48 to $7.68 | $6.86 to $7.26 | ||
Projected Growth (2) | 37.6% | 28.1% | ||
FFO per share | $8.26 to $8.46 | $8.12 to $8.52 | ||
Projected Growth (2) | 3.9% | 3.4% | ||
Core FFO per share | $8.13 to $8.33 | $8.03 to $8.43 | ||
Projected Growth (2) | 9.0% | 9.0% |
Assumptions | ||||
Annual 2016 | ||||
July 2016 | February 2016 | |||
Outlook | Outlook | |||
2016 Established Communities assumptions: | ||||
Revenue change (3) | 4.25% to 4.75% | 4.25% to 5.5% | ||
Operating expense change | 2.0% to 2.75% | 2.25% to 3.25% | ||
Net operating income change | 5.0% to 5.75% | 5.0% to 6.5% | ||
Expensed overhead (4) | $116 to $120 | $110 to $120 | ||
Capitalized interest | $76 to $80 | $72 to $82 | ||
Expected capital cost for Development Communities started in 2016 - AVB Share (5) | $1,225 | $1,150 | ||
Expected capital cost for Development Communities completed in 2016 - AVB Share | $975 | $950 | ||
Sources and Uses (2) | ||||
July 2016 | February 2016 | |||
Outlook | Outlook | |||
Cash and cash equivalents, December 31, 2015 | $400 | $400 | ||
2016 Projected sources of funds: | ||||
New capital from asset sales and capital markets activity | 1,150 | 1,075 | ||
Cash from operations (6) | 350 | 350 | ||
Total sources of funds | 1,500 | 1,425 | ||
2016 Projected uses of funds: | ||||
Development and redevelopment activity, including land | 1,300 | 1,350 | ||
Debt redemptions and amortization | 400 | 275 | ||
Total uses of funds | 1,700 | 1,625 | ||
Projected cash and cash equivalents, December 31, 2016 | $200 | $200 |
(1) | See Attachment 14 for Definitions and Reconciliations of Non-GAAP Financial Measures, including the reconciliation of EPS to FFO per share and Core FFO per share. |
(2) | Data generally represents the mid-point of management's expected ranges for 2016. |
(3) | If the Company were to include planned, current and previously completed Redevelopment Communities as part of its Established Communities portfolio, the midpoint of the projected revenue change for 2016 would increase by 0.1% to 0.2%. |
(4) | Includes general and administrative expense, property management and investment overhead. |
(5) | The Company's expected development for 2016 includes construction of communities through joint ventures. Including third party partners' interest in those joint ventures, gross projected Total Capital Cost for communities started in 2016 is $1,275. |
(6) | Represents cash flow from operations, net of capital expenditures and dividend payments. |
Q2 | Q2 | YTD | YTD | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income attributable to common stockholders | $ | 197,444 | $ | 172,324 | $ | 435,377 | $ | 380,469 | ||||||||
Depreciation - real estate assets, including discontinued operations and joint venture adjustments | 134,858 | 119,856 | 262,558 | 238,177 | ||||||||||||
Distributions to noncontrolling interests, including discontinued operations | 10 | 9 | 20 | 19 | ||||||||||||
Gain on sale of unconsolidated entities holding previously depreciated real estate | (23,547 | ) | (1,718 | ) | (53,172 | ) | (10,873 | ) | ||||||||
Gain on sale of previously depreciated real estate | (30,990 | ) | — | (82,420 | ) | (70,936 | ) | |||||||||
Casualty and impairment (recovery) loss, net on real estate (1)(5) | (4,195 | ) | — | (4,195 | ) | 4,195 | ||||||||||
FFO attributable to common stockholders | 273,580 | 290,471 | 558,168 | 541,051 | ||||||||||||
Adjusting items: | ||||||||||||||||
Joint venture losses (gains) (2) | 574 | (8,282 | ) | 5,568 | (10,283 | ) | ||||||||||
Business interruption ("BI") insurance proceeds | (10 | ) | (66 | ) | (20,344 | ) | (154 | ) | ||||||||
Casualty and impairment loss (gain), net on real estate (3)(5) | 2,463 | (17,114 | ) | 261 | (15,521 | ) | ||||||||||
Lost NOI from casualty losses covered by BI insurance | 1,833 | 1,687 | 3,703 | 3,334 | ||||||||||||
Loss (gain) on extinguishment of consolidated debt | 2,461 | (7,749 | ) | 2,461 | (7,749 | ) | ||||||||||
Acquisition costs | 829 | 62 | 1,929 | 940 | ||||||||||||
Severance related costs | (24 | ) | 16 | 561 | 1,664 | |||||||||||
Development pursuit and other write-offs | 338 | 353 | 771 | 462 | ||||||||||||
Joint venture promote (4) | (3,447 | ) | (1,289 | ) | (3,447 | ) | (21,969 | ) | ||||||||
Gain on sale of other real estate | (143 | ) | (9,625 | ) | (143 | ) | (9,647 | ) | ||||||||
Income taxes | — | 997 | — | 997 | ||||||||||||
Core FFO attributable to common stockholders | $ | 278,454 | $ | 249,461 | $ | 549,488 | $ | 483,125 | ||||||||
Average shares outstanding - diluted | 137,437,733 | 133,086,439 | 137,410,387 | 133,131,363 | ||||||||||||
Earnings per share - diluted | $ | 1.44 | $ | 1.29 | $ | 3.17 | $ | 2.86 | ||||||||
FFO per common share - diluted | $ | 1.99 | $ | 2.18 | $ | 4.06 | $ | 4.06 | ||||||||
Core FFO per common share - diluted | $ | 2.03 | $ | 1.87 | $ | 4.00 | $ | 3.63 | ||||||||
(1) In 2015, the Company recognized an impairment on depreciable real estate of $4,195 from the severe winter storms that occurred in the Company’s Northeast markets. In Q2 2016, the Company received insurance proceeds, net of additional costs incurred, of $5,732 related to the winter storms. For Q2 and YTD 2016, the Company recognized $4,195 of this recovery as an offset to the loss recognized in the prior year period. The balance of the net insurance proceeds received in 2016 of $1,537 is recognized as a casualty gain and is included in the reconciliation of FFO to Core FFO. | ||||||||||||||||
(2) Amounts for 2016 are primarily composed of the Company's portion of yield maintenance charges incurred for the early repayment of debt associated with joint venture disposition activity. Amount for YTD 2016 also includes the write-off of asset management fee intangibles primarily associated with the disposition of communities in the U.S. Fund. Amounts for 2015 are primarily composed of the Company's proportionate share of gains and operating results for joint ventures formed with Equity Residential as part of the Archstone acquisition. | ||||||||||||||||
(3) Amounts for Q2 and YTD 2016 include impairment charges of $4,000 and $10,500, respectively, relating to ancillary land parcels, partially offset by $1,537 in insurance proceeds in excess of the total recognized loss related to severe winter storms in the Company's Northeast markets that occurred in 2015. Amount for YTD 2016 also includes $8,702 in property damage insurance proceeds for the Edgewater casualty loss. Amounts for Q2 and YTD 2015 include $22,000 and $44,142, respectively, of Edgewater insurance proceeds received, partially offset by $4,886 and $27,679, respectively, for the write-off of real estate and related costs. | ||||||||||||||||
(4) Amounts for 2016 are composed of the Company's recognition of its promoted interest in Fund II. Amount for YTD 2015 is primarily composed of a joint venture partner's buyout of the Company's promoted interest in future distributions of MVP I, LLC. | ||||||||||||||||
(5) Aggregate impact of Casualty and impairment (recovery) loss, net on real estate and Casualty and impairment loss (gain), net on real estate for Q2 and YTD 2016 are gains of $1,732 and $3,935, respectively, as shown on Attachment 1 to this release. | ||||||||||||||||
Net income attributable to common stockholders | $ | 197,444 | |
Interest expense, net | 46,581 | ||
Income tax expense | 36 | ||
Depreciation expense | 132,469 | ||
EBITDA | $ | 376,530 | |
NOI from real estate assets sold or held for sale | (1,192 | ) | |
Gain on sale of communities | (30,990 | ) | |
EBITDA after disposition activity | $ | 344,348 | |
Joint venture income | (27,151 | ) | |
Casualty and impairment (gain) loss, net | (1,732 | ) | |
Lost NOI from casualty losses | 1,833 | ||
Loss on extinguishment of debt, net | 2,461 | ||
Gain on sale of other real estate | (143 | ) | |
Business interruption insurance proceeds | (10 | ) | |
Acquisition costs | 829 | ||
Severance related costs | (24 | ) | |
Development pursuit and other write-offs | 338 | ||
Core EBITDA | $ | 320,749 | |
Interest expense, net | $ | 46,581 | |
Interest Coverage | 6.9 times | ||
Total debt principal (1) | $ | 6,864,985 | |
Cash and cash in escrow | (287,691 | ) | |
Net debt | $ | 6,577,294 | |
Core EBITDA | $ | 320,749 | |
Core EBITDA, annualized | $ | 1,282,996 | |
Net Debt-to-Core EBITDA | 5.1 times | ||
(1) Balance at June 30, 2016 excludes $7,178 of debt discount and $23,657 of deferred financing costs as reflected in unsecured notes, net, and $11,701 of debt premium and $11,860 of deferred financing costs as reflected in notes payable, on the Condensed Consolidated Balance Sheets. The debt premium is primarily related to above market interest rates on debt assumed in connection with the Archstone acquisition. | |||
Q2 | Q2 | Q1 | Q4 | YTD | YTD | |||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Net income | $ | 197,319 | $ | 172,253 | $ | 237,877 | $ | 155,352 | $ | 435,197 | $ | 380,306 | ||||||||||||
Indirect operating expenses, net of corporate income | 15,477 | 14,817 | 16,537 | 13,332 | 32,015 | 30,215 | ||||||||||||||||||
Investments and investment management expense | 1,194 | 1,073 | 1,145 | 1,096 | 2,340 | 2,107 | ||||||||||||||||||
Expensed acquisition, development and other pursuit costs, net of recoveries | 1,436 | 673 | 3,462 | 1,570 | 4,897 | 1,860 | ||||||||||||||||||
Interest expense, net | 46,581 | 44,590 | 43,410 | 42,217 | 89,991 | 90,164 | ||||||||||||||||||
Loss (gain) on extinguishment of debt, net | 2,461 | (7,749 | ) | — | — | 2,461 | (7,749 | ) | ||||||||||||||||
General and administrative expense | 12,011 | 10,335 | 11,404 | 11,508 | 23,414 | 20,803 | ||||||||||||||||||
Joint venture income | (27,151 | ) | (13,806 | ) | (27,969 | ) | (1,093 | ) | (55,120 | ) | (48,371 | ) | ||||||||||||
Depreciation expense | 132,469 | 118,627 | 127,216 | 122,259 | 259,685 | 235,480 | ||||||||||||||||||
Income tax expense | 36 | 1,293 | 37 | 135 | 73 | 1,308 | ||||||||||||||||||
Casualty and impairment (gain) loss, net | (1,732 | ) | (17,114 | ) | (2,202 | ) | 125 | (3,935 | ) | (11,326 | ) | |||||||||||||
Gain on sale of real estate | (31,133 | ) | (9,625 | ) | (51,430 | ) | (9,474 | ) | (82,563 | ) | (80,583 | ) | ||||||||||||
NOI from real estate assets sold or held for sale (1) | (1,192 | ) | (4,377 | ) | (2,025 | ) | (3,281 | ) | (3,218 | ) | (8,812 | ) | ||||||||||||
NOI | $ | 347,776 | $ | 310,990 | $ | 357,462 | $ | 333,746 | $ | 705,237 | $ | 605,402 | ||||||||||||
Established: | ||||||||||||||||||||||||
New England | $ | 37,170 | $ | 36,182 | $ | 36,670 | $ | 38,294 | $ | 73,840 | $ | 67,824 | ||||||||||||
Metro NY/NJ | 61,951 | 60,551 | 59,764 | 62,988 | 121,715 | 118,456 | ||||||||||||||||||
Mid-Atlantic | 40,530 | 39,560 | 40,063 | 41,210 | 80,593 | 79,089 | ||||||||||||||||||
Pacific NW | 15,843 | 14,997 | 15,745 | 15,502 | 31,588 | 29,747 | ||||||||||||||||||
No. California | 60,850 | 56,985 | 60,248 | 59,354 | 121,097 | 111,011 | ||||||||||||||||||
So. California | 50,934 | 46,182 | 51,041 | 49,227 | 101,975 | 92,655 | ||||||||||||||||||
Total Established | 267,278 | 254,457 | 263,531 | 266,575 | 530,808 | 498,782 | ||||||||||||||||||
Other Stabilized (2) | 38,593 | 29,046 | 58,604 | 33,296 | 97,197 | 53,199 | ||||||||||||||||||
Development/Redevelopment | 41,905 | 27,487 | 35,327 | 33,875 | 77,232 | 53,421 | ||||||||||||||||||
NOI | $ | 347,776 | $ | 310,990 | $ | 357,462 | $ | 333,746 | $ | 705,237 | $ | 605,402 | ||||||||||||
(1) Represents NOI from real estate assets sold or held for sale that are not otherwise classified as discontinued operations. | ||||||||||||||||||||||||
(2) NOI for Q1 2016 and YTD 2016 Other Stabilized Communities includes $20,306 of business interruption insurance proceeds related to the Edgewater casualty loss. | ||||||||||||||||||||||||
Q2 | Q2 | YTD | YTD | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenue from real estate assets sold or held for sale | $ | 2,016 | $ | 7,292 | $ | 5,365 | $ | 14,726 | ||||||||
Operating expenses from real estate assets sold or held for sale | (824 | ) | (2,915 | ) | (2,147 | ) | (5,914 | ) | ||||||||
NOI from real estate assets sold or held for sale | $ | 1,192 | $ | 4,377 | $ | 3,218 | $ | 8,812 | ||||||||
Low Range | High Range | ||||||||
Projected EPS (diluted) - Q3 2016 | $ | 2.69 | $ | 2.75 | |||||
Depreciation (real estate related) | 0.98 | 1.02 | |||||||
Gain on sale of communities | (1.53 | ) | (1.57 | ) | |||||
Projected FFO per share (diluted) - Q3 2016 | 2.14 | 2.20 | |||||||
Gain on sale of other real estate | (0.08 | ) | (0.08 | ) | |||||
JV costs, abandoned pursuits, acquisition costs and severance | (0.02 | ) | (0.02 | ) | |||||
Lost NOI from casualty losses | 0.01 | 0.01 | |||||||
Projected Core FFO per share (diluted) - Q3 2016 | $ | 2.05 | $ | 2.11 | |||||
Projected EPS (diluted) - Full Year 2016 | $ | 7.48 | $ | 7.68 | |||||
Depreciation (real estate related) | 3.77 | 3.97 | |||||||
Gain on sale of communities | (2.99 | ) | (3.19 | ) | |||||
Projected FFO per share (diluted) - Full Year 2016 | 8.26 | 8.46 | |||||||
JV costs, abandoned pursuits, acquisition costs and severance | 0.03 | 0.03 | |||||||
Gain on sale of other real estate | (0.08 | ) | (0.08 | ) | |||||
Lost NOI from casualty losses | 0.05 | 0.05 | |||||||
Early extinguishment of consolidated borrowings | 0.02 | 0.02 | |||||||
Business interruption insurance proceeds | (0.15 | ) | (0.15 | ) | |||||
Projected Core FFO per share (diluted) - Full Year 2016 | $ | 8.13 | $ | 8.33 | |||||
Q2 | Q2 | YTD | YTD | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Rental revenue (GAAP basis) | $ | 379,675 | $ | 361,689 | $ | 753,426 | $ | 716,075 | ||||||||
Concessions amortized | 216 | 757 | 410 | 1,785 | ||||||||||||
Concessions granted | (313 | ) | (23 | ) | (524 | ) | (511 | ) | ||||||||
Rental Revenue with Concessions | ||||||||||||||||
on a Cash Basis | $ | 379,578 | $ | 362,423 | $ | 753,312 | $ | 717,349 | ||||||||
% change -- GAAP revenue | 5.0 | % | 5.2 | % | ||||||||||||
% change -- cash revenue | 4.7 | % | 5.0 | % | ||||||||||||
Year to Date | ||||
NOI | ||||
NOI for Established Communities | $ | 530,808 | ||
NOI for Other Stabilized Communities (1) | 97,197 | |||
NOI for Development/Redevelopment Communities | 77,232 | |||
NOI from real estate assets sold or held for sale | 3,218 | |||
Total NOI generated by real estate assets | 708,455 | |||
NOI on encumbered assets | 141,104 | |||
NOI on unencumbered assets | $ | 567,351 | ||
Unencumbered NOI | 80 | % | ||
(1) NOI for Other Stabilized Communities includes $20,306 of business interruption insurance proceeds related to the Edgewater casualty loss. | ||||
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