AvalonBay Communities : Third Quarter 2022 Investor Teleconference Presentation
November 03, 2022 at 04:21 pm EDT
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Avalon Doral
Doral, FL
AVA RiNo
Denver, CO
eaves Santa Margarita Santa Margarita, CA
INVESTOR TELECONFERENCE
PRESENTATION
Third Quarter 2022
November 3, 2022
See Appendix for information about forward-looking statements
and definitions and reconciliations of non-GAAP financial measures and other terms.
For the reasons described in the referenced forward-looking statements, including the impact of the COVID-19 pandemic and related governmental actions and changes in economic conditions,
our historical results may not be indicative of future results.
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PARTICIPANTS
BEN SCHALL
CHIEF EXECUTIVE OFFICER & PRESIDENT
KEVIN O'SHEA
CHIEF FINANCIAL OFFICER
MATT BIRENBAUM
CHIEF INVESTMENT OFFICER
SEAN BRESLIN
CHIEF OPERATING OFFICER
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REVIEW OF THIRD QUARTER AND YEAR-TO-DATE RESULTS AND ACTIVITY
THIRD QUARTER & YEAR-TO-DATE 2022 RESULTS & ACTIVITY
Q3
YTD
CORE FFO PER SHARE YEAR-OVER-YEAR GROWTH
21.4%
20.0%
SAME STORE RESIDENTIAL RENTAL REVENUE GROWTH
YEAR-OVER-YEAR
11.8%
11.1%
SEQUENTIAL
2.2%
N/A
DEVELOPMENT COMPLETIONS | WTD. AVG. INITIAL PROJECTED STABILIZED YIELD(1)
N/A
$ 600M | 6.2%
DEVELOPMENT STARTS
$ 200M
$ 665M
STRUCTURED INVESTMENT PROGRAM ("SIP") COMMITMENTS
$ 15M
$ 90M
CAPITAL RAISED | WTD. AVG. INITIAL COST OF CAPITAL(2)
$ 630M | 4.1%
$ 940M | 3.9%
EQUITY FORWARD(3)
N/A
$ 495M
Source: Internal company reports.
See Appendix for a reconciliation of Net Income attributable to common shareholders to FFO and to Core FFO.
Development completions and the weighted average Initial Projected Stabilized Yield include consolidated Development completions only.
Capital raised includes net proceeds from all wholly-owned dispositions (including residential condominium sales at The Park Loggia), and distributions from unconsolidated real estate entities. Weighted average initial cost of capital includes all wholly-owned dispositions (including the average imputed carry cost of the residential condominiums at The Park Loggia) only.
In April 2022, in connection with an underwritten offering of shares, the Company entered into forward contracts to sell 2,000,000 shares of common stock by the end of 2023 for approximate proceeds of $494.2 million net of offering fees and discounts based on the initial forward price. The proceeds that the Company expects to receive on the date or dates of settlement are subject to certain customary adjustments during the term of the forward contract for the Company's dividends and a daily interest charge.
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UPDATED FULL YEAR FINANCIAL AND OPERATING OUTLOOK
FULL YEAR 2022 UPDATED OUTLOOK SUMMARY(1)
REVISED
JULY
OUTLOOK
OUTLOOK(2)
PROJECTED CORE FFO PER SHARE GROWTH
18.5%
19.4%
SAME STORE COMMUNITIES(RESIDENTIAL ONLY)
RENTAL REVENUE GROWTH
11.0%
11.25%
KEY DRIVER SLIGHTLY LOWER LEASE RATES
OPERATING EXPENSE GROWTH
5.75%
5.0%
KEY DRIVERS HIGHER-THAN-EXPECTED RESIDENT TURNOVER IN THE THIRD QUARTER,
AND INCREASED UTILITY COSTS IN THE FOURTH QUARTER
NET OPERATING INCOME GROWTH
13.4%
14.25%
Source: Internal company reports.
See Appendix for a reconciliation of Projected EPS to Projected FFO and to Projected Core FFO.
All figures based on the midpoint of the Company's outlook ranges.
July outlook provided on July 27, 2022.
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AvalonBay Communities Inc. published this content on 03 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2022 20:20:28 UTC.
AvalonBay Communities, Inc. is a real estate investment trust specialized in the development, acquisition, ownership and operation of apartment communities in high barrier-to-entry markets of the United States.
At the end of January 2024, the group owned 279 operating apartment communities containing 83 655 apartment homes, of which 19 communities with 6,539 apartment homes were under development.