AvalonBay Communities, Inc. Provides First Quarter 2023 Operating Update and Publishes Investor Presentation
March 03 2023 - 4:15PM
Business Wire
AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”)
announced today that Same Store Residential rental revenue for the
two months ended February 28, 2023, increased 10.5% over the prior
year period. This is consistent with the Company’s expectation for
Same Store Residential rental revenue growth for this two-month
period when the Company published its outlook for full year 2023
Same Store Residential rental revenue growth on February 8,
2023.
The Company also provided the following Same Store Residential
operating information:
Economic Occupancy
2022
2023
December
January
February
Total
95.6%
95.8%
96.2%
Like-Term Effective Rent
Change
2022
2023
December
January
February
New England
4.0%
5.0%
5.3%
Metro NY / NJ
5.6%
5.6%
4.8%
Mid-Atlantic
5.0%
2.3%
2.6%
Southeast FL
8.7%
7.2%
6.1%
Denver, CO
2.5%
1.9%
4.5%
Pacific NW
1.5%
3.7%
4.3%
Northern California
2.3%
2.5%
3.8%
Southern California
2.8%
2.5%
3.8%
Charlotte, NC
7.8%
1.4%
6.4%
Total
3.8%
3.7%
4.2%
Renewal Offers for March and April 2023 were delivered to
residents at an average increase in the 7% range over the existing
lease.
The Company has posted an updated Investor Presentation to its
website. The presentation can be found in the Investor Relations
section of www.avalonbay.com.
Definitions
Economic Occupancy is defined as
total possible Residential revenue less vacancy loss as a
percentage of total possible Residential revenue. Total possible
Residential revenue (also known as “gross potential”) is determined
by valuing occupied units at contract rates and vacant units at
Market Rents. Vacancy loss is determined by valuing vacant units at
current Market Rents. By measuring vacant apartments at their
Market Rents, Economic Occupancy takes into account the fact that
apartment homes of different sizes and locations within a community
have different economic impacts on a community’s gross revenue.
Like-Term Effective Rent Change
represents the percentage change in effective rent between two
leases of the same lease term category for the same apartment. The
Company defines effective rent as the contractual rent for an
apartment less amortized concessions and discounts. Average
Like-Term Effective Rent Change is weighted based on the number of
leases meeting the criteria for new move-in and renewal like-term
effective rent change. New Move-In Like-Term Effective Rent Change
is the change in effective rent between the contractual rent for a
resident who moves out of an apartment, and the contractual rent
for a resident who moves into the same apartment with the same
lease term category. Renewal Like-Term Effective Rent Change is the
change in effective rent between two consecutive leases of the same
lease term category for the same resident occupying the same
apartment. Data for the Company’s Same Store community located in
Dallas, TX is not included as the community is managed by a third
party.
Market Rents as reported by the
Company are based on the current market rates set by the Company
based on its experience in renting apartments and publicly
available market data. Market Rents for a period are based on the
average Market Rents during that period and do not reflect any
impact for cash concessions.
Renewal Offers generally represent
initial offers made to market rate apartments with expiring leases
for which the residents have not provided notice of their intent to
vacate.
Residential represents results
attributable to the Company's apartment rental operations,
including parking and other ancillary Residential revenue.
Same Store is composed of
consolidated communities where a comparison of operating results
from the prior year to the current year is meaningful as these
communities were owned and had Stabilized Operations, as defined
below, as of the beginning of the respective prior year period.
Therefore, for 2023 operating results, Same Store is composed of
consolidated communities that have Stabilized Operations as of
January 1, 2022, are not conducting or are not probable to conduct
substantial redevelopment activities and are not held for sale or
probable for disposition within the current year.
Stabilized Operations is defined as
the earlier of (i) attainment of 90% physical occupancy or (ii) the
one-year anniversary of completion of development or
redevelopment.
About AvalonBay Communities, Inc.
As of December 31, 2022, the Company owned or held a direct or
indirect ownership interest in 294 apartment communities containing
88,475 apartment homes in 12 states and the District of Columbia,
of which 18 communities were under development and one community
was under redevelopment. The Company is an equity REIT in the
business of developing, redeveloping, acquiring and managing
apartment communities in leading metropolitan areas in New England,
the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific
Northwest, and Northern and Southern California, as well as in the
Company's expansion markets of Raleigh-Durham and Charlotte, North
Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver,
Colorado. More information may be found on the Company’s website at
http://www.avalonbay.com.
Copyright © 2023 AvalonBay Communities, Inc.
All Rights Reserved
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version on businesswire.com: https://www.businesswire.com/news/home/20230303005344/en/
Jason Reilley Vice President Investor Relations AvalonBay
Communities, Inc. 703-317-4681
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