AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”) today provided an update on certain third quarter Same Store Residential operating metrics.
The Same Store Residential operating metrics presented in the following tables were generally consistent with the Company’s expectations for these metrics for the two months ended August 31, 2024 when the Company published its updated outlook for full year 2024 Same Store Residential revenue growth on July 31, 2024.
| Economic Occupancy | |||||||||
2024 |
|
||||||||
| Q2 | July | August | |||||||
| Total | 96.0 |
% |
95.5 |
% | 95.6 |
% | |||
| Like-Term Effective Rent Change | |||||||||
2024 |
|
||||||||
| Q2 | July | August | |||||||
| New England | 4.6 |
% |
5.0 |
% | 5.1 |
% | |||
| Metro NY / NJ | 4.0 |
% |
3.1 |
% | 2.8 |
% | |||
| Mid-Atlantic | 5.5 |
% |
5.5 |
% | 5.3 |
% | |||
| Southeast FL | (0.1 |
%) |
(0.2 |
%) | (0.4 |
%) | |||
| Denver, CO | 3.5 |
% |
2.6 |
% | 3.3 |
% | |||
| Pacific NW | 6.0 |
% |
6.4 |
% | 5.0 |
% | |||
| Northern California | 2.6 |
% |
2.5 |
% | 3.1 |
% | |||
| Southern California | 2.3 |
% |
2.0 |
% | 2.7 |
% | |||
| Other Expansion Regions | (0.6 |
%) |
1.2 |
% | (4.1 |
%) | |||
| Total | 3.7 |
% |
3.6 |
% | 3.5 |
% | |||
| Suburban | 3.9 |
% |
3.6 |
% | 3.6 |
% | |||
| Urban | 3.1 |
% |
3.5 |
% | 3.3 |
% | |||
| Total | 3.7 |
% |
3.6 |
% | 3.5 |
% | |||
| New Move-in | 2.5 |
% |
2.0 |
% | 1.6 |
% | |||
| Renewal | 4.7 |
% |
5.0 |
% | 5.3 |
% | |||
| Total | 3.7 |
% |
3.6 |
% | 3.5 |
% | |||
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 for an individual apartment home 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. Like-Term Effective Rent Change with respect to multiple apartment homes represents an average. 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.
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.
Other Expansion Regions include markets located in Charlotte, North Carolina, and Dallas, Texas.
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 2024 operating results, Same Store is composed of consolidated communities that have Stabilized Operations as of January 1, 2023, 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 operations of a community that occur after the earlier of (i) attainment of 90% physical occupancy or (ii) the one-year anniversary of completion of development or redevelopment.
Suburban represents results attributable to submarkets having less than 3,500 households per square mile.
Urban represents results attributable to submarkets having 3,500 or more households per square mile.
About AvalonBay Communities, Inc.
AvalonBay Communities, Inc., a member of the S&P 500, 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 regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. As of June 30, 2024, the Company owned or held a direct or indirect ownership interest in 300 apartment communities containing 91,399 apartment homes in 12 states and the District of Columbia, of which 17 communities were under development. More information may be found on the Company’s website at https://www.avalonbay.com.
Copyright © 2024 AvalonBay Communities, Inc. All Rights Reserved
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Contacts
Jason Reilley
Vice President
Investor Relations
AvalonBay Communities, Inc.
703-317-4681
