Stockholders' Equity

6 Months Ended

Jun. 30, 2011

Stockholders' Equity

4. Stockholders’ Equity

The following summarizes the changes in stockholders’ equity for the six months ended June 30, 2011 (dollars in thousands):

	Common stock		Additional paid-in capital		Accumulated earnings less dividends			Accumulated other comprehensive loss			Total AvalonBay stockholders’ equity			Noncontrolling interests			Total equity
Balance at December 31, 2010	$	859	$	3,593,677	$	(282,743	)	$	(1,175	)	$	3,310,618		$	4,973		$	3,315,591
Net income attributable to common stockholders		—		—		73,713			—			73,713			—			73,713
Unrealized loss on cash flow hedges		—		—		—			(19,420	)		(19,420	)		—			(19,420	)
Change in redemption value of redeemable noncontrolling interest		—		—		(1,218	)		—			(1,218	)		—			(1,218	)
Noncontrolling interests (a)		—		—		—			—			—			(910	)		(910	)
Dividends declared to common stockholders		—		—		(157,075	)		—			(157,075	)		—			(157,075	)
Issuance of common stock, net of withholdings		28		251,060		(1,089	)		—			249,999			—			249,999
Amortization of deferred compensation		—		18,483		—			—			18,483			—			18,483
Balance at June 30, 2011	$	887	$	3,863,220	$	(368,412	)	$	(20,595	)	$	3,475,100		$	4,063		$	3,479,163

(a) Represents the impact of consolidating a Fund I subsidiary. See Note 6, “Investments in Real Estate Entities.”

During the six months ended June 30, 2011, the Company:

(i) issued 1,801,766 shares of common stock through public offerings;

(ii) issued 597,436 shares of common stock in connection with stock options exercised;

(iii) issued 1,809 common shares through the Company’s dividend reinvestment plan;

(iv) issued 498,810 common shares in connection with stock grants;

(v) issued 7,500 common shares for Down REIT OP units conversion;

(vi) withheld 126,928 common shares to satisfy employees’ tax withholding and other liabilities; and

(vii) redeemed 505 shares of restricted common stock upon forfeiture.

In addition, the Company granted 144,827 options for common stock to employees. Any deferred compensation related to the Company’s stock option and restricted stock grants during the six months ended June 30, 2011 is not reflected on the Company’s Condensed Consolidated Balance Sheet as of June 30, 2011, 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 may sell up to $500,000,000 of its common stock from time to time during a 36-month period. During the three months ended June 30, 2011, the Company sold 553,856 shares at an average sales price of $130.56 per share, for net proceeds of $71,225,000. During the six months ended June 30, 2011, the Company sold 1,801,766 shares at an average sales price of $120.47 per share, for aggregate net proceeds of $213,794,000. From program inception in November 2010 through the end of the second quarter of 2011, the Company sold 2,234,598 shares at an average price of $118.91 per share for aggregate net proceeds of $261,729,000.