AvalonBay Communities, Inc. Provides Second Quarter 2022 Operating Update
03 Juni 2022 - 10:15PM
Business Wire
AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”)
announced today that Same Store Residential rental revenue for the
two months ended May 31, 2022, increased 13.0% over the prior year
period. This is approximately 190 basis points above what the
Company’s expectation was for Same Store Residential rental revenue
growth for this two-month period when the Company published its
most recent outlook for full year 2022 Same Store Residential
rental revenue growth on April 27, 2022. This outperformance is
attributable to (i) favorable underlying resident uncollectible
lease revenue, (ii) the recognition of higher-than-expected
delinquent rent payments from COVID rental assistance programs, and
(iii) better-than-expected occupancy and effective lease rates.
The Company also provided the following Same Store Residential
operating information:
Economic Occupancy
2022
2022
Q1 April May Total
96.3%
96.4%
96.5%
Like-Term Effective Rent Change
2022
2022
Q1 April May New England
12.8%
14.0%
15.0%
Metro NY / NJ
15.5%
15.9%
17.2%
Mid-Atlantic
10.5%
11.3%
11.4%
Southeast FL
25.4%
21.3%
21.4%
Denver, CO
11.2%
13.7%
12.7%
Pacific NW
16.7%
19.6%
17.1%
No. California
12.2%
14.1%
13.5%
So. California
10.8%
10.5%
9.9%
Total
12.9%
13.6%
13.8%
Suburban communities
10.9%
11.4%
11.6%
Urban communities
17.8%
19.4%
18.5%
Total
12.9%
13.6%
13.8%
- The average asking rent on May 31, 2022 was approximately 9%
above the average asking rent on January 1, 2022.
- Loss-to-Lease for the month of May 2022 was approximately
14%.
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.
Loss-to-Lease represents the
percentage difference between the average market rent and average
gross potential rent and excludes the impact of regulatory
constraints (e.g., rent regulation, rent control, other) that limit
rent increases in certain regions.
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.
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 in the markets where the Company has a
significant presence and 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 2022 operating results, Same Store is composed of
consolidated communities that have Stabilized Operations as of
January 1, 2021, 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.
Suburban communities are
communities located in submarkets with less than 3,500 households
per square mile.
Urban communities are communities
located in submarkets with 3,500 households or more per square
mile.
About AvalonBay Communities, Inc.
As of March 31, 2022, the Company owned or held a direct or
indirect ownership interest in 296 apartment communities containing
87,918 apartment homes in 12 states and the District of Columbia,
of which 18 communities were under development and two communities
were 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 © 2022 AvalonBay Communities, Inc.
All Rights Reserved
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Jason Reilley Vice President Investor Relations AvalonBay
Communities, Inc. 703-317-4681
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