Equity

9 Months Ended

Sep. 30, 2012

Equity

Equity

4.  Equity

The following summarizes the changes in equity for the nine months ended September 30, 2012 (dollars in thousands):

					Accumulated			Accumulated			Total
			Additional		earnings			other			AvalonBay
	Common		paid-in		less			comprehensive			stockholders’			Noncontrolling			Total
	stock		capital		dividends			loss			equity			interests			equity
Balance at December 31, 2011	$	952	$	4,652,457	$	(171,648	)	$	(87,020	)	$	4,394,741		$	7,151		$	4,401,892
Net income attributable to common stockholders	—		—		301,512			—			301,512			—			301,512
Unrealized loss on cash flow hedges, net of reclassifications	—		—		—			(23,767		)	(23,767		)	—			(23,767		)
Change in redemption value of redeemable noncontrolling interest	—		—		(480		)	—			(480		)	—			(480		)
Noncontrolling interests	—		—		—			—			—			(3,592		)	(3,592		)
Dividends declared to common stockholders	—		—		(280,945		)	—			(280,945		)	—			(280,945		)
Issuance of common stock, net of withholdings	25		313,455		(2,250		)	—			311,230			—			311,230
Amortization of deferred compensation	—		15,025		—			—			15,025			—			15,025
Balance at September 30, 2012	$	977	$	4,980,937	$	(153,811	)	$	(110,787	)	$	4,717,316		$	3,559		$	4,720,875

During the nine months ended September 30, 2012, the Company:

(i)issued 2,165,206 shares of common stock through public offerings under CEP II and CEP III, discussed below;

(ii)issued 391,387 shares of common stock in connection with stock options exercised;

(iii)issued 1,830 common shares through the Company’s dividend reinvestment plan;

(iv)issued 96,592 common shares in connection with stock grants;

(v)withheld 120,952 common shares to satisfy employees’ tax withholding and other liabilities; and

(vi)cancelled 4,027 shares of restricted common stock upon forfeiture.

In addition, the Company granted 115,303 options for common stock to employees.  Any deferred compensation related to the Company’s stock option and restricted stock grants during the nine months ended September 30, 2012 is not reflected on the Company’s Condensed Consolidated Balance Sheet as of September 30, 2012, and will not be reflected until earned as compensation cost.

In November 2010, the Company commenced a second continuous equity program (“CEP II”), under which the Company was authorized to sell up to $500,000,000 of its common stock from time to time during a 36-month period. During the three and nine months ended September 30, 2012, the Company completed the sale of common stock authorized under CEP II, selling 315,323 and 1,435,215 shares at an average sales price of $141.35 and $140.41 per share, for net proceeds of $43,901,000 and $198,489,000, respectively. From program inception in November 2010 through completion, the Company issued 3,925,980 common shares at an average price of $127.36 per share for net proceeds of $492,490,000.

In August 2012, the Company commenced a third continuous equity program (“CEP III”), under which the Company is authorized to sell up to $750,000,000 of shares of its common stock from time to time during a 36-month period.  During the three months ended September 30, 2012, the Company sold 729,991 shares at an average sales price of $142.09 per share, for net proceeds of $102,168,000.