Maryland | 77-0404318 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
(Title of each class) | (Name of each exchange on which registered) | |
Common Stock, par value $.01 per share | New York Stock Exchange |
PAGE | ||||
• | 267 operating apartment communities containing 77,614 apartment homes in 12 states and the District of Columbia, of which 256 communities containing 74,998 apartment homes were consolidated for financial reporting purposes, five communities containing 1,539 apartment homes were held by joint ventures in which we hold an ownership interest, and six communities containing 1,077 apartment homes were owned by Archstone Multifamily Partners AC LP (the “U.S. Fund”). Nine of the consolidated communities containing 3,752 apartment homes were under redevelopment, as discussed below; |
• | 21 communities under development that are expected to contain an aggregate of 6,544 apartment homes when completed, one of which, expected to contain 265 apartment homes, is being developed through a joint venture; and |
• | rights to develop an additional 29 communities that, if developed as expected, will contain 9,496 apartment homes. |
• | Bellevue, Washington; |
• | Boston, Massachusetts; |
• | Denver, Colorado; |
• | Fairfield, Connecticut; |
• | Irvine, California; |
• | Iselin, New Jersey; |
• | Melville, New York; |
• | Los Angeles, California; |
• | New York, New York; |
• | San Diego, California; |
• | San Francisco, California; |
• | San Jose, California; and |
• | Virginia Beach, Virginia. |
• | focusing on resident satisfaction; |
• | staggering lease terms such that lease expirations are better matched to traffic patterns; |
• | balancing high occupancy with premium pricing and increasing rents as market conditions permit; and |
• | employing revenue management software to optimize the pricing and term of leases. |
• | we use purchase order controls, acquiring goods and services from pre-approved vendors; |
• | we use national negotiated contracts and also purchase supplies in bulk where possible; |
• | we bid third-party contracts on a volume basis; |
• | we strive to retain residents through high levels of service in order to eliminate the cost of preparing an apartment home for a new resident and to reduce marketing and vacant apartment utility costs; |
• | we perform turnover work in-house or hire third parties, generally considering the most cost effective approach as well as expertise needed to perform the work; |
• | we undertake preventive maintenance regularly to maximize resident safety and satisfaction, as well as to maximize property and equipment life; |
• | we have a customer care center, centralizing and improving the efficiency and consistency in the application of our policies for many of the administrative tasks associated with owning and operating apartment communities; |
• | we aggressively pursue real estate tax appeals; and |
• | we install high efficiency lighting and water fixtures, cogeneration systems and implement sustainability initiatives in our operating platform. |
• | we may abandon opportunities that we have already begun to explore for a number of reasons, including changes in local market conditions or increases in construction or financing costs, and, as a result, we may fail to recover expenses already incurred in exploring those opportunities; |
• | occupancy rates and rents at a community may fail to meet our original expectations for a number of reasons, including changes in market and economic conditions beyond our control and the development by competitors of competing communities; |
• | we may be unable to obtain, or experience delays in obtaining, necessary zoning, occupancy, or other required governmental or third party permits and authorizations, which could result in increased costs or the delay or abandonment of opportunities; |
• | we may incur costs that exceed our original estimates due to increased material, labor or other costs; |
• | we may be unable to complete construction and lease-up of a community on schedule, resulting in increased construction and financing costs and a decrease in expected rental revenues; |
• | we may be unable to obtain financing with favorable terms, or at all, for the proposed development of a community, which may cause us to delay or abandon an opportunity; |
• | we may incur liabilities to third parties during the development process, for example, in connection with managing existing improvements on the site prior to tenant terminations and demolition (such as commercial space) or in connection with providing services to third parties (such as the construction of shared infrastructure or other improvements); and |
• | we may incur liability if our communities are not constructed and operated in compliance with the accessibility provisions of the Americans with Disabilities Acts, the Fair Housing Act or other federal, state or local requirements. Noncompliance could result in imposition of fines, an award of damages to private litigants, and a requirement that we undertake structural modifications to remedy the noncompliance. |
• | land and/or property acquisition costs; |
• | fees paid to secure air rights and/or tax abatements; |
• | construction or reconstruction costs; |
• | costs of environmental remediation; |
• | real estate taxes; |
• | capitalized interest and insurance; |
• | loan fees; |
• | permits; |
• | professional fees; |
• | allocated development or redevelopment overhead; and |
• | other regulatory fees. |
• | corporate restructurings and/or layoffs, industry slowdowns and other factors that adversely affect the local economy; |
• | an oversupply of, or a reduced demand for, apartment homes; |
• | a decline in household formation or employment or lack of employment growth; |
• | the inability or unwillingness of residents to pay rent increases; |
• | rent control or rent stabilization laws, or other laws regulating housing, that could prevent us from raising rents sufficiently to offset increases in operating costs; and |
• | economic conditions that could cause an increase in our operating expenses, such as increases in property taxes, utilities, compensation of on-site associates and routine maintenance. |
• | an acquired property may fail to perform as we expected in analyzing our investment; and |
• | our estimate of the costs of operating, repositioning or redeveloping an acquired property may prove inaccurate. |
• | our subsidiaries that are the general partner or managing member of the ventures are generally liable, under applicable law or the governing agreement of a venture, for the debts and obligations of the respective venture, subject to certain exculpation and indemnification rights pursuant to the terms of the governing agreement; |
• | investors in the ventures holding a majority of the equity interests may remove us as the general partner or managing member in certain cases involving cause; |
• | while we have broad discretion to manage the ventures, the investors or an advisory committee comprised of representatives of the investors must approve certain matters, and as a result we may be unable to cause the ventures to implement certain decisions that we consider beneficial; and |
• | we may be liable and/or our status as a REIT may be jeopardized if either the ventures, or the REIT entities associated with the ventures, fail to comply with various tax or other regulatory matters. |
• | the environmental assessments described above have identified all potential environmental liabilities; |
• | no prior owner created any material environmental condition not known to us or the consultants who prepared the assessments; |
• | no environmental liabilities have developed since the environmental assessments were prepared; |
• | the condition of land or operations in the vicinity of our communities, such as the presence of underground storage tanks, will not affect the environmental condition of our communities; |
• | future uses or conditions, including, without limitation, changes in applicable environmental laws and regulations, will not result in the imposition of environmental liability; and |
• | no environmental liabilities will arise at communities that we have sold for which we may have liability. |
• | Established Communities (also known as Same Store Communities) are 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 occupancy as of the beginning of the respective prior year. The Established Communities for the year ended December 31, 2017 are communities that are consolidated for financial reporting purposes, had stabilized occupancy as of January 1, 2016, are not conducting or planning to conduct substantial redevelopment activities, and are not held for sale or planned for disposition within the current year. A community is considered to have stabilized occupancy at the earlier of (i) attainment of 95% physical occupancy or (ii) the one-year anniversary of completion of development or redevelopment. |
• | Other Stabilized Communities are all other completed consolidated communities that have stabilized occupancy, as defined above. Other Stabilized Communities do not include communities that are conducting or planning to conduct substantial redevelopment activities within the current year. |
• | Lease-Up Communities are consolidated communities where construction has been complete for less than one year and where physical occupancy has not reached 95%. |
• | Redevelopment Communities are consolidated communities where substantial redevelopment is in progress or is planned to begin during the current year. Redevelopment is considered substantial when capital invested during the reconstruction effort is expected to exceed the lesser of $5,000,000 or 10% of the community's pre-redevelopment basis and is expected to have a material impact on the operations of the community, including occupancy levels and future rental rates. |
• | Unconsolidated Communities are communities that we have an indirect ownership interest in through our investment interest in an unconsolidated entity. |
Number of communities | Number of apartment homes | ||||
Current Communities | |||||
Established Communities: | |||||
New England | 37 | 8,397 | |||
Metro NY/NJ | 35 | 10,371 | |||
Mid-Atlantic | 25 | 8,985 | |||
Pacific Northwest | 13 | 3,305 | |||
Northern California | 35 | 10,325 | |||
Southern California | 45 | 13,330 | |||
Total Established | 190 | 54,713 | |||
Other Stabilized Communities: | |||||
New England | 6 | 1,727 | |||
Metro NY/NJ | 8 | 2,090 | |||
Mid-Atlantic | 8 | 2,883 | |||
Pacific Northwest | 2 | 373 | |||
Northern California | 4 | 1,279 | |||
Southern California | 10 | 1,856 | |||
Expansion Markets | 2 | 622 | |||
Non-Core | 3 | 1,014 | |||
Total Other Stabilized | 43 | 11,844 | |||
Lease-Up Communities | 14 | 4,689 | |||
Redevelopment Communities (1) | 9 | 3,752 | |||
Unconsolidated Communities | 11 | 2,616 | |||
Total Current Communities | 267 | 77,614 | |||
Development Communities (2) | 21 | 6,544 | |||
Total Communities | 288 | 84,158 | |||
Development Rights | 29 | 9,496 |
(1) | Redevelopment Communities includes the reconstruction of the building destroyed in the Edgewater casualty loss. Due to the nature of this reconstruction, the 240 apartment homes we expect the new building to contain upon completion are not included in the apartment home count presented, and will be included upon completion. |
(2) | Development Communities includes AVA North Point, expected to contain 265 apartment homes, which is being developed within an unconsolidated joint venture. |
Number of communities | ||
Established Communities as of December 31, 2014 | 172 | |
Communities added | 13 | |
Communities removed (1): | ||
Redevelopment Communities | (4 | ) |
Disposed Communities | (3 | ) |
Other Stabilized (2) | (1 | ) |
Established Communities as of December 31, 2015 | 177 | |
Communities added | 25 | |
Communities removed (1): | ||
Redevelopment Communities | (3 | ) |
Disposed Communities | (6 | ) |
Communities with multiple phases combined | (2 | ) |
Established Communities as of December 31, 2016 | 191 | |
Communities added | 17 | |
Communities removed (1): | ||
Redevelopment Communities | (10 | ) |
Disposed Communities | (6 | ) |
Other Stabilized (2) | (1 | ) |
Communities with multiple phases combined | (1 | ) |
Established Communities as of December 31, 2017 | 190 |
(1) | We remove a community from our Established Communities portfolio for the upcoming year (and then generally maintain that designation) if we believe that planned activity for a community for the upcoming year will result in that community's expected operations not being comparable to the prior year period. We believe that a community's expected operations will not be comparable to the prior year period when we intend either (i) to undertake a significant capital renovation of the community, such that we would consider the community to be classified as a Redevelopment Community; (ii) to dispose of a community through a sale or other disposition transaction; or (iii) when a significant casualty loss occurs. |
(2) | Community was moved from the Established Communities portfolio to the Other Stabilized portfolio as a result of a casualty loss that occurred during the year. |
Number of communities | Number of apartment homes | ||||
Garden-style | 131 | 39,961 | |||
Mid-rise | 110 | 29,901 | |||
High-rise | 26 | 7,752 | |||
Total Current Communities | 267 | 77,614 |
Number of communities at | Number of apartment homes at | Percentage of total apartment homes at | |||||||||||||||
1/31/2017 | 1/31/2018 | 1/31/2017 | 1/31/2018 | 1/31/2017 | 1/31/2018 | ||||||||||||
New England | 50 | 50 | 11,783 | 12,392 | 15.7 | % | 15.9 | % | |||||||||
Boston, MA | 37 | 40 | 9,234 | 10,422 | 12.3 | % | 13.4 | % | |||||||||
Fairfield-New Haven, CT | 13 | 10 | 2,549 | 1,970 | 3.4 | % | 2.5 | % | |||||||||
Metro NY/NJ | 49 | 51 | 14,604 | 14,470 | 19.4 | % | 18.6 | % | |||||||||
New York City, NY | 12 | 13 | 4,583 | 4,909 | 6.1 | % | 6.3 | % | |||||||||
New York Suburban | 17 | 18 | 4,513 | 4,419 | 6.0 | % | 5.7 | % | |||||||||
New Jersey | 20 | 20 | 5,508 | 5,142 | 7.3 | % | 6.6 | % | |||||||||
Mid-Atlantic | 39 | 40 | 14,374 | 14,461 | 19.2 | % | 18.6 | % | |||||||||
Washington Metro/Baltimore, MD | 39 | 40 | 14,374 | 14,461 | 19.2 | % | 18.6 | % | |||||||||
Pacific Northwest | 17 | 18 | 4,092 | 4,669 | 5.5 | % | 6.0 | % | |||||||||
Seattle, WA | 17 | 18 | 4,092 | 4,669 | 5.5 | % | 6.0 | % | |||||||||
Northern California | 42 | 41 | 12,410 | 12,222 | 16.5 | % | 15.8 | % | |||||||||
San Jose, CA | 13 | 12 | 4,905 | 4,713 | 6.5 | % | 6.1 | % | |||||||||
Oakland-East Bay, CA | 13 | 13 | 3,843 | 3,847 | 5.1 | % | 5.0 | % | |||||||||
San Francisco, CA | 16 | 16 | 3,662 | 3,662 | 4.9 | % | 4.7 | % | |||||||||
Southern California | 59 | 62 | 16,761 | 17,764 | 22.3 | % | 23.0 | % | |||||||||
Los Angeles, CA | 38 | 40 | 11,291 | 11,916 | 15.0 | % | 15.4 | % | |||||||||
Orange County, CA | 12 | 13 | 3,243 | 3,621 | 4.3 | % | 4.7 | % | |||||||||
San Diego, CA | 9 | 9 | 2,227 | 2,227 | 3.0 | % | 2.9 | % | |||||||||
Expansion markets | — | 2 | — | 622 | — | 0.8 | % | ||||||||||
Denver, CO | — | 1 | — | 252 | — | 0.3 | % | ||||||||||
Southeast Florida | — | 1 | — | 370 | — | 0.5 | % | ||||||||||
Non-Core | 3 | 3 | 1,014 | 1,014 | 1.4 | % | 1.3 | % | |||||||||
259 | 267 | 75,038 | 77,614 | 100.0 | % | 100.0 | % |
• | 254 operating communities, including 241 with a full fee simple, or absolute, ownership interest and 13 that are on land subject to a land lease, two of which are dual-branded communities governed by a single land lease. The land leases have various expiration dates from October 2026 to March 2142, and six of the land leases are used to support tax advantaged structures that ultimately allow us to purchase the land upon lease expiration; |
• | a general partnership interest and an indirect limited partnership interest in the U.S. Fund and the AC JV. Subsidiaries of the U.S. Fund own a fee simple interest in six operating communities, of which one is subject to a land lease, and subsidiaries of the AC JV own a fee simple interest in three operating communities; |
• | a general partnership interest in one partnership structured as a “DownREIT,” as described more fully below, that owns one community; and |
• | a membership interest in three limited liability companies, that each hold a fee simple interest in an operating community. |
Number of apartment homes | Projected total capitalized cost (1) ($ millions) | Construction start | Initial actual/ projected occupancy (2) | Estimated completion | Estimated stabilization (3) | |||||||||||
1. | AVA NoMa Washington, D.C. | 438 | $ | 147 | Q2 2015 | Q1 2017 | Q1 2018 | Q3 2018 | ||||||||
2. | Avalon Brooklyn Bay (4) Brooklyn, NY | 180 | 90 | Q3 2015 | Q3 2017 | Q1 2018 | Q2 2018 | |||||||||
3. | Avalon Maplewood (5) Maplewood, NJ | 235 | 66 | Q4 2015 | Q4 2017 | Q3 2018 | Q1 2019 | |||||||||
4. | AVA Wheaton Wheaton, MD | 319 | 77 | Q4 2015 | Q3 2017 | Q2 2018 | Q4 2018 | |||||||||
5. | Avalon Dogpatch San Francisco, CA | 326 | 203 | Q4 2015 | Q3 2017 | Q3 2018 | Q1 2019 | |||||||||
6. | Avalon Somers Somers, NY | 152 | 45 | Q2 2016 | Q2 2017 | Q1 2018 | Q2 2018 | |||||||||
7. | AVA North Point (6) Cambridge, MA | 265 | 114 | Q2 2016 | Q1 2018 | Q4 2018 | Q2 2019 | |||||||||
8. | Avalon Boonton Boonton, NJ | 350 | 91 | Q3 2016 | Q2 2019 | Q1 2020 | Q3 2020 | |||||||||
9. | 11 West 61st Street (7) New York, NY | 172 | 604 | Q4 2016 | Q2 2019 | Q4 2019 | Q2 2020 | |||||||||
10. | Avalon Belltown Towers (7) Seattle, WA | 275 | 147 | Q4 2016 | Q3 2019 | Q4 2019 | Q2 2020 | |||||||||
11. | Avalon Public Market Emeryville, CA | 289 | 149 | Q4 2016 | Q3 2018 | Q1 2019 | Q3 2019 | |||||||||
12. | Avalon Teaneck Teaneck, NJ | 248 | 73 | Q4 2016 | Q2 2019 | Q1 2020 | Q3 2020 | |||||||||
13. | AVA Hollywood (7) Hollywood, CA | 695 | 365 | Q4 2016 | Q2 2019 | Q2 2020 | Q4 2020 | |||||||||
14. | AVA Esterra Park Redmond, WA | 323 | 91 | Q2 2017 | Q4 2018 | Q3 2019 | Q1 2020 | |||||||||
15. | Avalon at the Hingham Shipyard II Hingham, MA | 190 | 64 | Q2 2017 | Q4 2018 | Q2 2019 | Q4 2019 | |||||||||
16. | Avalon Piscataway Piscataway, NJ | 360 | 89 | Q2 2017 | Q3 2018 | Q2 2019 | Q4 2019 | |||||||||
17 | Avalon Sudbury Sudbury, MA | 250 | 85 | Q3 2017 | Q2 2018 | Q1 2019 | Q3 2019 | |||||||||
18. | Avalon Towson Towson, MD | 371 | 114 | Q4 2017 | Q1 2020 | Q4 2020 | Q2 2021 | |||||||||
19. | Avalon Yonkers Yonkers, NY | 590 | 188 | Q4 2017 | Q4 2019 | Q2 2021 | Q3 2021 | |||||||||
20. | Avalon Walnut Creek II Walnut Creek, CA | 200 | 93 | Q4 2017 | Q3 2019 | Q1 2020 | Q2 2020 | |||||||||
21. | Avalon North Creek Bothell, WA | 316 | 84 | Q4 2017 | Q2 2019 | Q1 2020 | Q3 2020 | |||||||||
Total | 6,544 | $ | 2,979 |
(1) | Projected total capitalized cost includes all capitalized costs projected to be or actually incurred to develop the respective Development Community, determined in accordance with GAAP, including land acquisition costs, construction costs, real estate taxes, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees. Projected total capitalized cost for communities identified as having joint venture ownership, either during construction or upon construction completion, represents the total projected joint venture contribution amount unless otherwise noted. |
(2) | Initial projected occupancy dates are estimates. There can be no assurance that we will pursue to completion any or all of these proposed developments. |
(3) | Stabilized operations is defined as the earlier of (i) attainment of 95% or greater physical occupancy or (ii) the one-year anniversary of completion of development. |
(4) | We are developing this project with a private development partner. Projected total capitalized cost as presented is for the rental portion of the development on floors 3 through 19, which we will own, with the partner owning the for-sale condominium portion on floors 20 through 30 of the development. We are providing a construction loan to the development partner, expected to be $48,800,000 which together with the partner's contributed equity is expected to fund the condominium portion of the project. A more detailed description of Avalon Brooklyn Bay can be found in Note 5, “Investments in Real Estate Entities,” of the Consolidated Financial Statements set forth in Item 8 of this report. |
(5) | In February 2017, a fire occurred at Avalon Maplewood. See "Insurance and Risk of Uninsured Losses" for further discussion. |
(6) | We are developing this project within an unconsolidated joint venture that was formed in July 2016, in which we own a 55.0% interest. The information above represents the total cost for the venture. |
(7) | Developments containing at least 10,000 square feet of retail space include 11 West 61st Street (67,000 square feet), Avalon Belltown Towers (11,000 square feet) and AVA Hollywood (19,000 square feet). |
Number of apartment homes | Total capitalized cost (1) ($ millions) | Approximate rentable area (sq. ft.) (2) | Total capitalized cost per sq. ft. | Quarter of completion | |||||||||||||
1. | Avalon Willoughby Square/AVA DoBro Brooklyn, NY | 826 | $ | 456 | 607,579 | $ | 751 | Q1 2017 | |||||||||
2. | Avalon Huntington Beach (2) Huntington Beach, CA | 378 | 120 | 331,160 | $ | 362 | Q1 2017 | ||||||||||
3. | Avalon Laurel Laurel, MD | 344 | 72 | 378,688 | $ | 190 | Q1 2017 | ||||||||||
4. | Avalon Esterra Park (2) Redmond, WA | 482 | 138 | 457,481 | $ | 302 | Q2 2017 | ||||||||||
5. | Avalon Quincy Quincy, MA | 395 | 93 | 372,683 | $ | 250 | Q2 2017 | ||||||||||
6. | Avalon Princeton Princeton, NJ | 280 | 95 | 287,386 | $ | 331 | Q2 2017 | ||||||||||
7. | Avalon Hunt Valley Hunt Valley, MD | 332 | 74 | 320,968 | $ | 231 | Q2 2017 | ||||||||||
8. | Avalon Chino Hills Chino Hills, CA | 331 | 97 | 327,890 | $ | 296 | Q3 2017 | ||||||||||
9. | Avalon North Station Boston, MA | 503 | 271 | 408,714 | $ | 663 | Q4 2017 | ||||||||||
10. | Avalon West Hollywood (2) West Hollywood, CA | 294 | 154 | 314,165 | $ | 490 | Q4 2017 | ||||||||||
11. | Avalon Newcastle Commons I (2) Newcastle, WA | 378 | 123 | 401,604 | $ | 306 | Q4 2017 | ||||||||||
12. | Avalon Great Neck Great Neck, NY | 191 | 81 | 203,004 | $ | 399 | Q4 2017 | ||||||||||
13. | Avalon Rockville Centre II Rockville Centre, NY | 165 | 59 | 148,041 | $ | 399 | Q4 2017 | ||||||||||
14. | Avalon Easton Easton, MA | 290 | 64 | 347,144 | $ | 184 | Q4 2017 | ||||||||||
Total | 5,189 | $ | 1,897 |
(1) | Total capitalized cost is as of December 31, 2017. We generally anticipate incurring additional costs associated with these communities that are customary for new developments. |
(2) | Approximate rentable area includes retail space. Developments containing at least 10,000 square feet of retail space include Avalon Huntington Beach (10,000 square feet), Avalon Esterra Park (17,000 square feet), Avalon West Hollywood (29,000 square feet) and Avalon Newcastle Commons I (15,000 square feet). |
Number of apartment homes | Projected total capitalized cost (1) ($ millions) | Reconstruction start | Estimated reconstruction completion | Estimated restabilized operations (2) | |||||||||||
1. | Avalon on the Alameda San Jose, CA | 305 | $ | 10 | Q1 2017 | Q1 2018 | Q3 2018 | ||||||||
2. | AVA Toluca Hills Los Angeles, CA | 1,151 | 79 | Q1 2017 | Q1 2019 | Q3 2019 | |||||||||
3. | Avalon Ballston Square Arlington, VA | 714 | 25 | Q4 2017 | Q1 2019 | Q3 2019 | |||||||||
4. | Avalon Prudential Center II Boston, MA | 266 | 19 | Q1 2017 | Q3 2019 | Q1 2020 | |||||||||
5. | Avalon Midtown West New York, NY | 550 | 30 | Q1 2017 | Q2 2019 | Q4 2019 | |||||||||
6. | Avalon Willow Mamaroneck, NY | 227 | 13 | Q2 2017 | Q1 2018 | Q3 2018 | |||||||||
7. | Avalon at Edgewater II (3) Edgewater, NJ | 240 | 60 | Q2 2017 | Q1 2019 | Q3 2019 | |||||||||
8. | Avalon at Florham Park Florham Park, NJ | 270 | 13 | Q3 2017 | Q3 2018 | Q1 2019 | |||||||||
9. | AVA Van Ness Washington, D.C. | 269 | 20 | Q3 2017 | Q1 2019 | Q3 2019 | |||||||||
Total | 3,992 | $ | 269 |
(1) | Projected total capitalized cost does not include capitalized costs incurred prior to redevelopment. |
(2) | Restabilized operations is defined as the earlier of (i) attainment of 95% or greater physical occupancy or (ii) the one-year anniversary of completion of redevelopment. |
(3) | Redevelopment Communities includes the reconstruction of the building destroyed in the Edgewater casualty loss. Due to the nature of this reconstruction, the 240 apartment homes that we expect the new building to contain upon completion are not included in the apartment home count presented elsewhere in this Form 10-K, and will be included upon completion. |
Market | Number of rights | Estimated number of homes | Projected total capitalized cost ($ millions) (1) | |||||||
New England | 6 | 1,380 | $ | 512 | ||||||
Metro NY/NJ | 11 | 3,998 | 1,559 | |||||||
Mid-Atlantic | 3 | 1,058 | 299 | |||||||
Pacific Northwest | 1 | 272 | 80 | |||||||
Northern California | 5 | 1,507 | 762 | |||||||
Southern California | 3 | 1,281 | 576 | |||||||
Total | 29 | 9,496 | $ | 3,788 |
(1) | Projected total capitalized cost includes all capitalized costs incurred to date (if any) and projected to be incurred to develop the respective community, determined in accordance with GAAP, including land acquisition costs, construction costs, real estate taxes, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees. |
Estimated number of apartment homes | Projected total capitalized cost (1) ($ millions) | Date acquired | ||||||||
1. | Avalon at the Hingham Shipyard II Hingham, MA | 190 | $ | 64 | January 2017 | |||||
2. | Avalon North Creek Bothell, WA | 316 | 84 | March 2017 | ||||||
3. | Avalon Saugus Saugus, WA | 280 | 94 | May 2017 | ||||||
4. | Avalon Sudbury Sudbury, MA | 250 | 85 | June 2017 | ||||||
5. | Avalon Yonkers Yonkers, NY | 590 | 188 | August 2017 | ||||||
6. | Avalon Harbor East Baltimore, MD | 387 | 133 | October 2017 | ||||||
Total | 2,013 | $ | 648 |
(1) | Projected total capitalized cost includes all capitalized costs incurred to date (if any) and projected to be incurred to develop the respective community, determined in accordance with GAAP, including land and related acquisition costs, construction costs, real estate taxes, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, net of projected proceeds for any planned sales of associated outparcels and other real estate. |
2017 | 2016 | |||||||||||||||||||||||
Sales Price | Dividends declared | Sales Price | Dividends declared | |||||||||||||||||||||
High | Low | High | Low | |||||||||||||||||||||
Quarter ended March 31 | $ | 188.00 | $ | 169.50 | $ | 1.42 | $ | 190.49 | $ | 160.66 | $ | 1.35 | ||||||||||||
Quarter ended June 30 | $ | 199.52 | $ | 182.01 | $ | 1.42 | $ | 192.29 | $ | 166.59 | $ | 1.35 | ||||||||||||
Quarter ended September 30 | $ | 196.13 | $ | 176.66 | $ | 1.42 | $ | 188.00 | $ | 168.57 | $ | 1.35 | ||||||||||||
Quarter ended December 31 | $ | 188.91 | $ | 175.18 | $ | 1.42 | $ | 177.77 | $ | 158.32 | $ | 1.35 |
Period | (a) Total Number of Shares Purchased(1) | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Dollar Amount that May Yet be Purchased Under the Plans or Programs (in thousands) (2) | ||||||||||
October 1 - October 31, 2017 | 52 | $ | 178.42 | — | $ | 200,000 | ||||||||
November 1 - November 30, 2017 | — | $ | — | — | $ | 200,000 | ||||||||
December 1 - December 31, 2017 | 102 | $ | 182.22 | — | $ | 200,000 |
(1) | Reflects shares surrendered to the Company in connection with exercise of stock options as payment of exercise price, as well as for taxes associated with the vesting of restricted share grants. |
(2) | As disclosed in our Form 10-Q for the quarter ended March 31, 2008, represents amounts outstanding under the Company's $500,000,000 Stock Repurchase Program. There is no scheduled expiration date to this program. |
For the year ended | |||||||||||||||||||
12/31/17 | 12/31/16 | 12/31/15 | 12/31/14 | 12/31/13 | |||||||||||||||
Operating data: | |||||||||||||||||||
Total revenue | $ | 2,158,628 | $ | 2,045,255 | $ | 1,856,028 | $ | 1,685,061 | $ | 1,462,921 | |||||||||
Gain on sale of communities | $ | 252,599 | $ | 374,623 | $ | 115,625 | $ | 84,925 | $ | — | |||||||||
(Loss) gain on other real estate transactions | $ | (10,907 | ) | $ | 10,224 | $ | 9,647 | $ | 490 | $ | 240 | ||||||||
Income from continuing operations | $ | 876,660 | $ | 1,033,708 | $ | 741,733 | $ | 659,148 | $ | 57,827 | |||||||||
Income from discontinued operations | $ | — | $ | — | $ | — | $ | 38,179 | $ | 294,944 | |||||||||
Net income | $ | 876,660 | $ | 1,033,708 | $ | 741,733 | $ | 697,327 | $ | 352,771 | |||||||||
Net income attributable to common stockholders | $ | 876,921 | $ | 1,034,002 | $ | 742,038 | $ | 683,567 | $ | 353,141 | |||||||||
Per Common Share and Share Information: | |||||||||||||||||||
Earnings per common share—basic: | |||||||||||||||||||
Income from continuing operations attributable to common stockholders (net of dividends attributable to preferred stock) | $ | 6.36 | $ | 7.53 | $ | 5.54 | $ | 4.93 | $ | 0.46 | |||||||||
Discontinued operations attributable to common stockholders | — | — | — | 0.29 | 2.32 | ||||||||||||||
Net income attributable to common stockholders | $ | 6.36 | $ | 7.53 | $ | 5.54 | $ | 5.22 | $ | 2.78 | |||||||||
Weighted average shares outstanding—basic (1) | 137,523,771 | 136,928,251 | 133,565,711 | 130,586,718 | 126,855,754 | ||||||||||||||
Earnings per common share—diluted: | |||||||||||||||||||
Income from continuing operations attributable to common stockholders (net of dividends attributable to preferred stock) | $ | 6.35 | $ | 7.52 | $ | 5.51 | $ | 4.92 | $ | 0.46 | |||||||||
Discontinued operations attributable to common stockholders | — | — | — | 0.29 | 2.32 | ||||||||||||||
Net income attributable to common stockholders | $ | 6.35 | $ | 7.52 | $ | 5.51 | $ | 5.21 | $ | 2.78 | |||||||||
Weighted average shares outstanding—diluted | 138,066,686 | 137,461,637 | 134,593,177 | 131,237,502 | 127,265,903 | ||||||||||||||
Cash dividends declared | $ | 5.68 | $ | 5.40 | $ | 5.00 | $ | 4.64 | $ | 4.28 | |||||||||
Other Information: | |||||||||||||||||||
Net income attributable to common stockholders | $ | 876,921 | $ | 1,034,002 | $ | 742,038 | $ | 683,567 | $ | 353,141 | |||||||||
Depreciation—continuing operations | 584,150 | 531,434 | 477,923 | 442,682 | 560,215 | ||||||||||||||
Depreciation—discontinued operations | — | — | — | — | 13,500 | ||||||||||||||
Interest expense, net—continuing operations (2) | 225,133 | 194,585 | 148,879 | 181,030 | 238,323 | ||||||||||||||
Interest expense, net—discontinued operations (2) | — | — | — | — | — | ||||||||||||||
Income tax expense | 141 | 305 | 1,483 | 9,368 | — | ||||||||||||||
EBITDA (3) | $ | 1,686,345 | $ | 1,760,326 | $ | 1,370,323 | $ | 1,316,647 | $ | 1,165,179 | |||||||||
Funds from Operations (4) | $ | 1,167,218 | $ | 1,135,762 | $ | 1,083,085 | $ | 951,035 | $ | 642,814 | |||||||||
Core Funds from Operations (4) | $ | 1,189,976 | $ | 1,125,341 | $ | 1,016,035 | $ | 890,081 | $ | 792,888 | |||||||||
Number of Current Communities (5) | 267 | 258 | 259 | 251 | 244 | ||||||||||||||
Number of apartment homes | 77,614 | 74,538 | 75,584 | 73,963 | 72,811 | ||||||||||||||
Balance Sheet Information: | |||||||||||||||||||
Real estate, before accumulated depreciation | $ | 21,935,936 | $ | 20,776,626 | $ | 19,268,099 | $ | 17,849,316 | $ | 16,800,321 | |||||||||
Total assets | $ | 18,414,821 | $ | 17,867,271 | $ | 16,931,305 | $ | 16,140,578 | $ | 15,292,922 | |||||||||
Notes payable and unsecured credit facilities, net | $ | 7,329,470 | $ | 7,030,880 | $ | 6,456,948 | $ | 6,489,707 | $ | 6,110,083 | |||||||||
Cash Flow Information: | |||||||||||||||||||
Net cash flows provided by operating activities (6) | $ | 1,256,257 | $ | 1,160,272 | $ | 1,074,667 | $ | 891,355 | $ | 760,571 | |||||||||
Net cash flows used in investing activities (6) | $ | (965,381 | ) | $ | (1,032,352 | ) | $ | (1,199,517 | ) | $ | (816,760 | ) | $ | (1,159,938 | ) | ||||
Net cash flows (used in) provided by financing activities (6) | $ | (418,947 | ) | $ | (303,271 | ) | $ | 25,093 | $ | 150,571 | $ | (2,004,179 | ) |
(1) | Amounts do not include unvested restricted shares included in the calculation of Earnings per Share. Please refer to Note 1, “Organization, Basis of Presentation and Significant Accounting Policies—Earnings per Common Share,” of the Consolidated Financial Statements set forth in Item 8 of this report for a discussion of the calculation of Earnings per Share. |
(2) | Interest expense, net includes any gain or loss incurred from the extinguishment of debt. |
(3) | EBITDA is defined as net income before interest income and expense, income taxes, depreciation and amortization from both continuing and discontinued operations. Under this definition, EBITDA includes gains on sale of assets and gain on sale of partnership interests. Management generally considers EBITDA to be an appropriate supplemental measure to net income of our operating performance because it helps investors to understand our ability to incur and service debt and to make capital expenditures. EBITDA should not be considered as an alternative to net income (as determined in accordance with GAAP), as an indicator of our operating performance, or to cash flows from operating activities (as determined in accordance with GAAP) as a measure of liquidity. Our calculation of EBITDA may not be comparable to EBITDA as calculated by other companies. |
(4) | Refer to “Reconciliation of Non-GAAP Financial Measures” below. |
(5) | Current Communities consist of all communities other than those which are still under construction and for which a certificate or certificates of occupancy for the entire community have not been received. |
(6) | Amounts for 2013 through 2016 reflect the retrospective adjustments to the Consolidated Statements of Cash Flows discussed in Note 1, "Organization, Basis of Presentation and Significant Accounting Policies—Change in Accounting Principle," of the Consolidated Financial Statements set forth in Item 8 of this report. |
• | gains or losses on sales of previously depreciated operating communities; |
• | cumulative effect of change in accounting principle; |
• | impairment write-downs of depreciable real estate assets; |
• | write-downs of investments in affiliates due to a decrease in the value of depreciable real estate assets held by those affiliates; |
• | depreciation of real estate assets; and |
• | adjustments for unconsolidated partnerships and joint ventures. |
• | joint venture gains, costs, and promoted interests; |
• | casualty and impairment losses or gains, net; |
• | gains or losses from early extinguishment of consolidated borrowings; |
• | abandoned pursuits; |
• | business interruption insurance proceeds and the related lost NOI that is covered by the business interruption insurance proceeds; |
• | property and casualty insurance proceeds and legal settlements; |
• | gains or losses on sales of assets not subject to depreciation; |
• | hedge ineffectiveness; |
• | severance related costs; |
• | expensed acquisition costs related to business acquisitions that occurred prior to the adoption of ASU 2017-01 as of October 1, 2016, as discussed in Note 1, “Organization, Basis of Presentation and Significant Accounting Policies,” of the Consolidated Financial Statements set forth in Item 8 of this report; and |
• | other non-core items. |
For the year ended | |||||||||||||||||||
12/31/17 | 12/31/16 | 12/31/15 | 12/31/14 | 12/31/13 | |||||||||||||||
Net income attributable to common stockholders | $ | 876,921 | $ | 1,034,002 | $ | 742,038 | $ | 683,567 | $ | 353,141 | |||||||||
Depreciation—real estate assets, including discontinued operations and joint venture adjustments | 582,907 | 538,606 | 486,019 | 449,769 | 582,325 | ||||||||||||||
Distributions to noncontrolling interests, including discontinued operations | 42 | 41 | 38 | 35 | 32 | ||||||||||||||
Gain on sale of unconsolidated entities holding previously depreciated real estate assets | (40,053 | ) | (58,069 | ) | (33,580 | ) | (73,674 | ) | (14,453 | ) | |||||||||
Gain on sale of previously depreciated real estate assets (1) | (252,599 | ) | (374,623 | ) | (115,625 | ) | (108,662 | ) | (278,231 | ) | |||||||||
Casualty and impairment (recovery) loss, net on real estate (2) (7) | — | (4,195 | ) | 4,195 | — | — | |||||||||||||
FFO attributable to common stockholders | $ | 1,167,218 | $ | 1,135,762 | $ | 1,083,085 | $ | 951,035 | $ | 642,814 | |||||||||
Adjusting items: | |||||||||||||||||||
Joint venture losses (gains) (3) | 950 | 6,031 | (9,059 | ) | (5,194 | ) | 35,554 | ||||||||||||
Joint venture promote (4) | (26,742 | ) | (7,985 | ) | (21,969 | ) | (58,128 | ) | — | ||||||||||
Impairment loss on real estate (5) (7) | 9,350 | 10,500 | 800 | — | — | ||||||||||||||
Casualty (gain) loss, net on real estate (6) (7) | (3,100 | ) | (10,239 | ) | (15,538 | ) | — | — | |||||||||||
Business interruption insurance proceeds (8) | (3,495 | ) | (20,565 | ) | (1,509 | ) | (2,494 | ) | (299 | ) | |||||||||
Lost NOI from casualty losses covered by business interruption insurance (9) | 7,904 | 7,366 | 7,862 | — | — | ||||||||||||||
Loss (gain) on extinguishment of consolidated debt | 25,472 | 7,075 | (26,736 | ) | 412 | 14,921 | |||||||||||||
Hedge ineffectiveness | (753 | ) | — | — | — | — | |||||||||||||
Severance related costs | 87 | 852 | 1,999 | 815 | 3,580 | ||||||||||||||
Development pursuit and other write-offs | 1,406 | 3,662 | 1,838 | 2,564 | 1,506 | ||||||||||||||
Loss (gain) on sale of other real estate transactions | 10,907 | (10,224 | ) | (9,647 | ) | (490 | ) | (240 | ) | ||||||||||
Acquisition costs (10) | 92 | 3,523 | 3,806 | (7,682 | ) | 44,052 | |||||||||||||
Legal settlements | 680 | (417 | ) | — | — | — | |||||||||||||
Income taxes (11) | — | — | 1,103 | 9,243 | — | ||||||||||||||
Loss on interest rate protection agreement | — | — | — | — | 51,000 | ||||||||||||||
Core FFO attributable to common stockholders | $ | 1,189,976 | $ | 1,125,341 | $ | 1,016,035 | $ | 890,081 | $ | 792,888 | |||||||||
Weighted average common shares outstanding - diluted | 138,066,686 | 137,461,637 | 134,593,177 | 131,237,502 | 127,265,903 | ||||||||||||||
EPS per common share - diluted | $ | 6.35 | $ | 7.52 | $ | 5.51 | $ | 5.21 | $ | 2.78 | |||||||||
FFO per common share - diluted | $ | 8.45 | $ | 8.26 | $ | 8.05 | $ | 7.25 | $ | 5.05 | |||||||||
Core FFO per common share - diluted | $ | 8.62 | $ | 8.19 | $ | 7.55 | $ | 6.78 | $ | 6.23 |
(1) | Amount for 2014 excludes a gain of $14,132, representing our joint venture partners' portion of the gain on sale from a Fund I community which we consolidated for financial reporting purposes. |
(2) | During 2015, we recognized an impairment on depreciable real estate of $4,195 from the severe winter storms that occurred in our Northeast markets. During 2016, we received insurance proceeds, net of additional costs incurred, of $5,732 related to the winter storms, and recognized $4,195 of this recovery as an offset to the loss recognized in the prior year period. The balance of the net insurance proceeds received in 2016 of $1,537 is recognized as a casualty gain and is included in the reconciliation of FFO to Core FFO. |
(3) | Amounts for 2017 and 2016 are primarily composed of (i) our proportionate share of yield maintenance charges incurred for the early repayment of debt associated with joint venture disposition activity, (ii) the write-off of asset management fee intangibles primarily associated with the disposition of communities in the U.S. Fund, and (iii) our proportionate share of operating results for joint ventures formed with Equity Residential as part of the Archstone Acquisition. Amounts for 2014 and 2015 are primarily composed of our proportionate share of gains and operating results for joint ventures formed with Equity Residential as part of the Archstone Acquisition. Amount for 2013 includes Archstone Acquisition related costs. |
(4) | Amounts for 2017 and 2016 are composed of the recognition of our promoted interest in Fund II. Amount for 2015 is primarily composed of amounts received related to the modification of the joint venture agreement for the entity that owns Avalon at Mission Bay II to eliminate our promoted interest in future distributions. Amount for 2014 relates to our promoted interests from the sale of Avalon Chrystie Place. |
(5) | Amounts include impairment charges relating to ancillary land parcels. |
(6) | Amount for 2017 includes $19,481 for the Maplewood casualty loss, partially offset by $17,143 of property damage insurance proceeds, and $5,438 in legal settlement proceeds relating to construction defects at a community acquired as part of the Archstone Acquisition. Amount for 2016 includes $8,702 in property damage insurance proceeds for the Edgewater casualty loss, and $1,537 in insurance proceeds in excess of the total recognized loss related to severe winter storms in our Northeast markets that occurred in 2015. Amount for 2015 includes $44,142 of Edgewater insurance proceeds received partially offset by $28,604 for the write-off of real estate and related costs. |
(7) | The aggregate impact of (i) casualty and impairment (recovery) loss, net on real estate, (ii) impairment loss on real estate and (iii) casualty (gain) loss, net on real estate for 2017 is a loss of $6,250, and for 2016 and 2015 are gains of $3,935 and $10,542, respectively. |
(8) | Amount for 2017 is composed of business interruption insurance proceeds resulting from the final insurance settlement of the Maplewood casualty loss. Amount for 2016 is primarily composed of business interruption insurance proceeds resulting from the final insurance settlement of the Edgewater casualty loss. |
(9) | Amounts for 2017, 2016 and 2015 primarily relate to lost NOI resulting from the Edgewater casualty loss, for which we received $20,306 in business interruption insurance proceeds in the first quarter of 2016. Amount for 2017 also includes amounts related to the Maplewood casualty loss, for which we received $3,495 in business interruption insurance proceeds in the third quarter of 2017. |
(10) | Amount for 2014 is primarily composed of receipts related to communities acquired as part of the Archstone Acquisition for periods prior to our ownership, which are primarily comprised of property tax and mortgage insurance refunds. Amount for 2013 primarily consists of costs related to the Archstone Acquisition. |
(11) | Amounts for 2015 and 2014 are composed of income taxes on income that was earned in taxable REIT subsidiaries and that is not considered to be a component of primary operations. |
For the year ended | 2017 vs. 2016 | 2016 vs. 2015 | |||||||||||||||||||||||
2017 | 2016 | 2015 | $ Change | % Change | $ Change | % Change | |||||||||||||||||||
Revenue: | |||||||||||||||||||||||||
Rental and other income | $ | 2,154,481 | $ | 2,039,656 | $ | 1,846,081 | $ | 114,825 | 5.6 | % | $ | 193,575 | 10.5 | % | |||||||||||
Management, development and other fees | 4,147 | 5,599 | 9,947 | (1,452 | ) | (25.9 | )% | (4,348 | ) | (43.7 | )% | ||||||||||||||
Total revenue | 2,158,628 | 2,045,255 | 1,856,028 | 113,373 | 5.5 | % | 189,227 | 10.2 | % | ||||||||||||||||
Expenses: | |||||||||||||||||||||||||
Direct property operating expenses, excluding property taxes | 428,451 | 406,577 | 377,317 | 21,874 | 5.4 | % | 29,260 | 7.8 | % | ||||||||||||||||
Property taxes | 221,375 | 204,837 | 193,499 | 16,538 | 8.1 | % | 11,338 | 5.9 | % | ||||||||||||||||
Total community operating expenses | 649,826 | 611,414 | 570,816 | 38,412 | 6.3 | % | 40,598 | 7.1 | % | ||||||||||||||||
Corporate-level property management and other indirect operating expenses | 69,559 | 67,038 | 67,060 | 2,521 | 3.8 | % | (22 | ) | — | % | |||||||||||||||
Investments and investment management expense | 5,936 | 4,822 | 4,370 | 1,114 | 23.1 | % | 452 | 10.3 | % | ||||||||||||||||
Expensed acquisition, development and other pursuit costs, net of recoveries | 2,736 | 9,922 | 6,822 | (7,186 | ) | (72.4 | )% | 3,100 | 45.4 | % | |||||||||||||||
Interest expense, net | 199,661 | 187,510 | 175,615 | 12,151 | 6.5 | % | 11,895 | 6.8 | % | ||||||||||||||||
Loss (gain) on extinguishment of debt, net | 25,472 | 7,075 | (26,736 | ) | 18,397 | 260.0 | % | 33,811 | N/A (1) | ||||||||||||||||
Depreciation expense | 584,150 | 531,434 | 477,923 | 52,716 | 9.9 | % | 53,511 | 11.2 | % | ||||||||||||||||
General and administrative expense | 50,673 | 45,771 | 42,774 | 4,902 | 10.7 | % | 2,997 | 7.0 | % | ||||||||||||||||
Casualty and impairment loss (gain), net | 6,250 | (3,935 | ) | (10,542 | ) | 10,185 | N/A (1) | 6,607 | (62.7 | )% | |||||||||||||||
Total other expenses | 944,437 | 849,637 | 737,286 | 94,800 | 11.2 | % | 112,351 | 15.2 | % | ||||||||||||||||
Equity in income of unconsolidated real estate entities | 70,744 | 64,962 | 70,018 | 5,782 | 8.9 | % | (5,056 | ) | (7.2 | )% | |||||||||||||||
Gain on sale of communities | 252,599 | 374,623 | 115,625 | (122,024 | ) | (32.6 | )% | 258,998 | 224.0 | % | |||||||||||||||
(Loss) gain on other real estate transactions | (10,907 | ) | 10,224 | 9,647 | (21,131 | ) | N/A (1) | 577 | 6.0 | % | |||||||||||||||
Income before income taxes | 876,801 | 1,034,013 | 743,216 | (157,212 | ) | (15.2 | )% | 290,797 | 39.1 | % | |||||||||||||||
Income tax expense | 141 | 305 | 1,483 | (164 | ) | (53.8 | )% | (1,178 | ) | (79.4 | )% | ||||||||||||||
Net income | 876,660 | 1,033,708 | 741,733 | (157,048 | ) | (15.2 | )% | 291,975 | 39.4 | % | |||||||||||||||
Net loss attributable to noncontrolling interests | 261 | 294 | 305 | (33 | ) | (11.2 | )% | (11 | ) | (3.6 | )% | ||||||||||||||
Net income attributable to common stockholders | $ | 876,921 | $ | 1,034,002 | $ | 742,038 | $ | (157,081 | ) | (15.2 | )% | $ | 291,964 | 39.3 | % |
(1) | Percent change is not meaningful. |
For the year ended | |||||||||||
12/31/17 | 12/31/16 | 12/31/15 | |||||||||
Net income | $ | 876,660 | $ | 1,033,708 | $ | 741,733 | |||||
Indirect operating expenses, net of corporate income | 65,398 | 61,403 | 56,973 | ||||||||
Investments and investment management expense | 5,936 | 4,822 | 4,370 | ||||||||
Expensed acquisition, development and other pursuit costs, net of recoveries | 2,736 | 9,922 | 6,822 | ||||||||
Interest expense, net | 199,661 | 187,510 | 175,615 | ||||||||
Loss on extinguishment of debt, net | 25,472 | 7,075 | (26,736 | ) | |||||||
General and administrative expense | 50,673 | 45,771 | 42,774 | ||||||||
Equity in income of unconsolidated real estate entities | (70,744 | ) | (64,962 | ) | (70,018 | ) | |||||
Depreciation expense | 584,150 | 531,434 | 477,923 | ||||||||
Income tax expense | 141 | 305 | 1,483 | ||||||||
Casualty and impairment loss (gain), net | 6,250 | (3,935 | ) | (10,542 | ) | ||||||
Gain on sale of real estate assets | (252,599 | ) | (374,623 | ) | (115,625 | ) | |||||
Loss (gain) on other real estate transactions | 10,907 | (10,224 | ) | (9,647 | ) | ||||||
Net operating income from real estate assets sold or held for sale | (14,573 | ) | (44,263 | ) | (59,383 | ) | |||||
Net operating income | $ | 1,490,068 | $ | 1,383,943 | $ | 1,215,742 |
Full Year | |||||||
2017 | 2016 | ||||||
Established Communities | $ | 27,191 | $ | 48,569 | |||
Other Stabilized Communities (1) | 41,664 | 58,555 | |||||
Development and Redevelopment Communities (2) | 37,270 | 61,077 | |||||
Total | $ | 106,125 | $ | 168,201 |
(1) | NOI for the year ended December 31, 2016 includes $20,306 in business interruption insurance proceeds related to the Edgewater casualty loss. |
(2) | NOI for the year ended December 31, 2017 includes $3,495 in business interruption insurance proceeds related to the Maplewood casualty loss. |
• | development and redevelopment activity in which we are currently engaged; |
• | the minimum dividend payments on our common stock required to maintain our REIT qualification under the Code; |
• | debt service and principal payments either at maturity or opportunistically before maturity; and |
• | normal recurring operating expenses and corporate overhead expenses. |
• | investment of $979,947,000 in the development and redevelopment of communities; |
• | acquisition of three operating communities and land for an operating community previously encumbered by a ground lease for $462,317,000; and |
• | capital expenditures of $73,990,000 for our operating communities and non-real estate assets. |
• | proceeds from dispositions of $503,039,000; and |
• | net distributions from unconsolidated real estate entities of $64,812,000. |
• | the repayment of secured notes in the amount of $1,313,025,000; |
• | payment of cash dividends in the amount of $772,657,000; and |
• | the repayment of the $300 million Term Loan. |
• | proceeds from the issuance of unsecured notes and borrowing under the $250 million Term Loan in the aggregate amount of $1,696,826,000; |
• | the issuance of secured notes in the amount of $206,800,000; and |
• | the issuance of common stock in the amount of $111,093,000, primarily through CEP IV. |
• | limitations on the amount of total and secured debt in relation to our overall capital structure; |
• | limitations on the amount of our unsecured debt relative to the undepreciated basis of real estate assets that are not encumbered by property-specific financing; and |
• | minimum levels of debt service coverage. |
• | in conjunction with the refinancing of three secured borrowings in May 2017, in April 2017, we settled $185,100,000 of forward interest rate swap agreements designated as cash flow hedges of the interest rate variability of the secured notes, making a payment of $2,326,000; |
• | in conjunction with our May 2017 unsecured note issuance, we settled $400,000,000 of forward interest rate swap agreements designated as cash flow hedges of the interest rate variability on the forecasted issuance of the unsecured notes, making a payment of $1,361,000; and |
• | in conjunction with our June 2017 unsecured note issuance, we settled $214,900,000 of forward interest rate swap agreements designated as cash flow hedges of the interest rate variability on the forecasted issuance of the unsecured notes, receiving a payment of $4,078,000. |
• | In February 2017, we repaid $17,300,000 of variable rate debt secured by Avalon Mountain View at par at its scheduled maturity date. |
• | In February 2017, we entered into a $250,000,000 variable rate unsecured term loan (the "$250 million Term Loan"), of which $100,000,000 matures in February 2022 with stated pricing of LIBOR plus 0.90%, and $150,000,000 matures in February 2024 with stated pricing of LIBOR plus 1.50%. In April 2017, we drew the $250,000,000 available under the $250 million Term Loan. |
• | In May 2017, we repaid $670,590,000 aggregate principal amount of 6.26% fixed rate secured notes secured by 11 communities, representing the majority of the Fannie Mae pool 2 secured indebtedness assumed as part of the Archstone Acquisition, which had a contractual maturity date of November 2017 but opened for prepayment at par on April 30, 2017. In conjunction with the repayment, we recognized a gain of $10,839,000, primarily composed of the write-off of unamortized premium. We refinanced the secured borrowings for three of these communities for an aggregate principal amount of $185,100,000, with a contractual fixed interest rate of 3.61% and maturity dates of June 2027. |
• | In May 2017, we issued $400,000,000 principal amount of unsecured notes in a public offering under our existing shelf registration statement for net proceeds of approximately $396,016,000. The notes mature in May 2027 and were issued at a 3.35% interest rate. |
• | In June 2017, we issued $300,000,000 principal amount of unsecured notes in a public offering under our existing shelf registration statement for net proceeds of approximately $297,372,000. The notes mature in July 2047 and were issued at a 4.15% interest rate. |
• | In June 2017, we repaid $556,313,000 aggregate principal amount of 5.86% fixed rate secured notes secured by 12 wholly-owned operating communities, representing the remaining debt in the Freddie Mac cross-collateralized pool financing originated in 2009, in advance of their May 2019 maturity date. In conjunction with the repayment, we recognized a charge of $34,965,000, consisting of prepayment penalties of $33,515,000 and the non-cash write-off of deferred financing costs of $1,450,000. |
• | In October 2017, we refinanced the secured borrowing of Archstone Lexington for a principal balance of $21,700,000, with a variable interest rate of LIBOR plus 1.35% and maturity date of October 2020. |
• | In November 2017, we issued $300,000,000 principal amount of floating rate unsecured notes in a public offering under our existing shelf registration statement for net proceeds of approximately $298,800,000. The notes mature in January 2021 and were issued at three month LIBOR plus 0.43%. |
• | In November 2017, we issued $450,000,000 principal amount of unsecured notes in a public offering under our existing shelf registration statement for net proceeds of approximately $445,271,000. The notes mature in January 2028 and were issued at a 3.20% coupon. |
• | In November 2017, we repaid our $300,000,000 variable rate unsecured term loan (the "$300 million Term Loan") entered into in March 2014. In conjunction with the repayment, we recognized a charge of $1,367,000 for the non-cash write-off of deferred financing costs. |
All-In interest rate (1) | Principal maturity date | Balance Outstanding | Scheduled Maturities | ||||||||||||||||||||||||||||||||||
Community | 12/31/2016 | 12/31/2017 | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | |||||||||||||||||||||||||||||
Tax-exempt bonds (2) | |||||||||||||||||||||||||||||||||||||
Fixed rate | |||||||||||||||||||||||||||||||||||||
Avalon Oaks West | 7.55 | % | Apr-2043 | (3) | $ | 15,420 | $ | 15,213 | $ | 241 | $ | 257 | $ | 275 | $ | 293 | $ | 313 | $ | 13,834 | |||||||||||||||||
Avalon at Chestnut Hill | 6.16 | % | Oct-2047 | 38,564 | 38,097 | 536 | 566 | 596 | 629 | 663 | 35,107 | ||||||||||||||||||||||||||
Avalon Westbury | 3.81 | % | Nov-2036 | (4) | 62,200 | 62,200 | — | — | — | — | — | 62,200 | |||||||||||||||||||||||||
116,184 | 115,510 | 777 | 823 | 871 | 922 | 976 | 111,141 | ||||||||||||||||||||||||||||||
Variable rate | |||||||||||||||||||||||||||||||||||||
Avalon Mountain View | 1.42 | % | Feb-2017 | (5) | 17,300 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Eaves Mission Viejo | 2.35 | % | Jun-2025 | (6) | 7,635 | 7,635 | — | — | — | — | — | 7,635 | |||||||||||||||||||||||||
AVA Nob Hill | 2.30 | % | Jun-2025 | (6) | 20,800 | 20,800 | — | — | — | — | — | 20,800 | |||||||||||||||||||||||||
Avalon Campbell | 2.63 | % | Jun-2025 | (6) | 38,800 | 38,800 | — | — | — | — | — | 38,800 | |||||||||||||||||||||||||
Eaves Pacifica | 2.66 | % | Jun-2025 | (6) | 17,600 | 17,600 | — | — | — | — | — | 17,600 | |||||||||||||||||||||||||
Avalon Bowery Place I | 4.19 | % | Nov-2037 | (6) | 93,800 | 93,800 | — | — | — | — | — | 93,800 | |||||||||||||||||||||||||
Avalon Acton | 3.24 | % | Jul-2040 | (6) | 45,000 | 45,000 | — | — | — | — | — | 45,000 | |||||||||||||||||||||||||
Avalon Morningside Park | 2.25 | % | May-2046 | (4) | 100,000 | 100,000 | — | — | — | 345 | 405 | 99,250 | |||||||||||||||||||||||||
Avalon Clinton North | 3.40 | % | Nov-2038 | (6) | 147,000 | 147,000 | — | — | — | — | — | 147,000 | |||||||||||||||||||||||||
Avalon Clinton South | 3.40 | % | Nov-2038 | (6) | 121,500 | 121,500 | — | — | — | — | — | 121,500 | |||||||||||||||||||||||||
Avalon Midtown West | 3.31 | % | May-2029 | (6) | 100,500 | 100,500 | — | — | — | — | — | 100,500 | |||||||||||||||||||||||||
Avalon San Bruno I | 3.29 | % | Dec-2037 | (6) | 64,450 | 64,450 | — | — | — | — | — | 64,450 | |||||||||||||||||||||||||
Avalon Calabasas | 2.86 | % | Apr-2028 | (6) | 44,410 | 44,410 | — | — | — | — | — | 44,410 | |||||||||||||||||||||||||
818,795 | 801,495 | — | — | — | 345 | 405 | 800,745 | ||||||||||||||||||||||||||||||
Conventional loans (2) | |||||||||||||||||||||||||||||||||||||
Fixed rate | |||||||||||||||||||||||||||||||||||||
$250 million unsecured notes | 6.19 | % | Mar-2020 | 250,000 | 250,000 | — | — | 250,000 | — | — | — | ||||||||||||||||||||||||||
$250 million unsecured notes | 4.04 | % | Jan-2021 | 250,000 | 250,000 | — | — | — | 250,000 | — | — | ||||||||||||||||||||||||||
$450 million unsecured notes | 4.30 | % | Sep-2022 | 450,000 | 450,000 | — | — | — | — | 450,000 | — | ||||||||||||||||||||||||||
$250 million unsecured notes | 3.00 | % | Mar-2023 | 250,000 | 250,000 | — | — | — | — | — | 250,000 | ||||||||||||||||||||||||||
$400 million unsecured notes | 3.78 | % | Oct-2020 | 400,000 | 400,000 | — | — | 400,000 | — | — | — | ||||||||||||||||||||||||||
$350 million unsecured notes | 4.30 | % | Dec-2023 | 350,000 | 350,000 | — | — | — | — | — | 350,000 | ||||||||||||||||||||||||||
$300 million unsecured notes | 3.66 | % | Nov-2024 | 300,000 | 300,000 | — | — | — | — | — | 300,000 | ||||||||||||||||||||||||||
$525 million unsecured notes | 3.55 | % | Jun-2025 | 525,000 | 525,000 | — | — | — | — | — | 525,000 | ||||||||||||||||||||||||||
$300 million unsecured notes | 3.62 | % | Nov-2025 | 300,000 | 300,000 | — | — | — | — | — | 300,000 | ||||||||||||||||||||||||||
$475 million unsecured notes | 3.35 | % | May-2026 | 475,000 | 475,000 | — | — | — | — | — | 475,000 | ||||||||||||||||||||||||||
$300 million unsecured notes | 3.01 | % | Oct-2026 | 300,000 | 300,000 | — | — | — | — | — | 300,000 | ||||||||||||||||||||||||||
$350 million unsecured notes | 3.95 | % | Oct-2046 | 350,000 | 350,000 | — | — | — | — | — | 350,000 | ||||||||||||||||||||||||||
$400 million unsecured notes | 3.50 | % | May-2027 | — | 400,000 | — | — | — | — | — | 400,000 | ||||||||||||||||||||||||||
$300 million unsecured notes | 4.09 | % | Jul-2047 | — | 300,000 | — | — | — | — | — | 300,000 | ||||||||||||||||||||||||||
$450 million unsecured notes | 3.32 | % | Jan-2028 | — | 450,000 | — | — | — | — | — | 450,000 | ||||||||||||||||||||||||||
Avalon Orchards | 7.80 | % | Jul-2033 | 16,075 | 15,579 | 577 | 619 | 663 | 710 | 760 | 12,250 | ||||||||||||||||||||||||||
Avalon Walnut Creek | 4.00 | % | Jul-2066 | 3,420 | 3,557 | — | — | — | — | — | 3,557 | ||||||||||||||||||||||||||
Avalon Mission Oaks | 6.04 | % | May-2019 | (7) | 19,545 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon Stratford | 6.02 | % | May-2019 | (7) | 38,221 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
AVA Belltown | 6.00 | % | May-2019 | (7) | 60,766 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon Encino | 6.06 | % | May-2019 | (7) | 33,882 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon Run East | 5.95 | % | May-2019 | (7) | 36,305 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon Wilshire | 6.18 | % | May-2019 | (7) | 61,268 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon at Foxhall | 6.06 | % | May-2019 | (7) | 54,583 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon at Gallery Place | 6.06 | % | May-2019 | (7) | 42,410 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon at Traville | 5.91 | % | May-2019 | (7) | 71,871 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon Bellevue | 5.92 | % | May-2019 | (7) | 24,695 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon on the Alameda | 5.91 | % | May-2019 | (7) | 49,930 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon at Mission Bay I | 5.90 | % | May-2019 | (7) | 67,772 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
AVA Pasadena | 4.06 | % | Jun-2018 | 11,287 | 11,073 | 11,073 | — | — | — | — | — | ||||||||||||||||||||||||||
Avalon La Jolla Colony | 3.36 | % | Nov-2017 | (7) | 26,682 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Eaves Old Town Pasadena | 3.36 | % | Nov-2017 | (7) | 14,120 | — | — | — | — | — | — | — |
All-In interest rate (1) | Principal maturity date | Balance Outstanding | Scheduled Maturities | ||||||||||||||||||||||||||||||||||
Community | 12/31/2016 | 12/31/2017 | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | |||||||||||||||||||||||||||||
Eaves Thousand Oaks | 3.36 | % | Nov-2017 | (7) | 26,392 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Archstone Lexington | 3.36 | % | Nov-2017 | (7)(8) | 21,601 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Eaves Los Feliz | 3.36 | % | Nov-2017 | (7)(8) | 41,302 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon Oak Creek | 3.36 | % | Nov-2017 | (7) | 69,696 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon Del Mar Station | 3.36 | % | Nov-2017 | (7) | 70,854 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon Courthouse Place | 3.36 | % | Nov-2017 | (7) | 118,112 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon Pasadena | 3.36 | % | Nov-2017 | (7) | 25,805 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Eaves West Valley | 3.36 | % | Nov-2017 | (7) | 146,696 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Eaves Woodland Hills | 3.36 | % | Nov-2017 | (7)(8) | 98,732 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Avalon Russett | 3.36 | % | Nov-2017 | (7)(8) | 32,199 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Eaves Los Feliz | 3.68 | % | Jun-2027 | (8) | — | 41,400 | — | — | — | — | — | 41,400 | |||||||||||||||||||||||||
Eaves Woodland Hills | 3.67 | % | Jun-2027 | (8) | — | 111,500 | — | — | — | — | — | 111,500 | |||||||||||||||||||||||||
Avalon Russett | 3.77 | % | Jun-2027 | (8) | — | 32,200 | — | — | — | — | — | 32,200 | |||||||||||||||||||||||||
Avalon San Bruno II | 3.85 | % | Apr-2021 | 30,001 | 29,533 | 534 | 564 | 591 | 27,844 | — | — | ||||||||||||||||||||||||||
Avalon Westbury | 4.88 | % | Nov-2036 | (4) | 17,745 | 16,450 | 1,358 | 1,426 | 1,499 | 1,574 | 1,654 | 8,939 | |||||||||||||||||||||||||
Avalon San Bruno III | 3.18 | % | Jun-2020 | 54,408 | 53,315 | 1,226 | 1,264 | 50,825 | — | — | — | ||||||||||||||||||||||||||
Avalon Andover | 3.29 | % | Apr-2018 | 13,844 | 13,498 | 13,498 | — | — | — | — | — | ||||||||||||||||||||||||||
Avalon Natick | 3.14 | % | Apr-2019 | 14,170 | 13,831 | 349 | 13,482 | — | — | — | — | ||||||||||||||||||||||||||
Avalon Hoboken | 3.55 | % | Dec-2020 | 67,904 | 67,904 | — | — | 67,904 | — | — | — | ||||||||||||||||||||||||||
Avalon Columbia Pike | 3.24 | % | Nov-2019 | 70,019 | 68,637 | 1,553 | 67,084 | — | — | — | — | ||||||||||||||||||||||||||
5,752,312 | 5,828,477 | 30,168 | 84,439 | 771,482 | 280,128 | 452,414 | 4,209,846 | ||||||||||||||||||||||||||||||
Variable rate | |||||||||||||||||||||||||||||||||||||
Avalon Calabasas | 2.42 | % | Aug-2018 | (6) | 53,570 | 52,092 | 52,092 | — | — | — | — | — | |||||||||||||||||||||||||
Avalon Natick | 3.46 | % | Apr-2019 | (6) | 35,897 | 35,039 | 884 | 34,155 | — | — | — | — | |||||||||||||||||||||||||
Archstone Lexington | 3.21 | % | Oct-2020 | (8) | — | 21,700 | — | — | 21,700 | — | — | — | |||||||||||||||||||||||||
Term Loan - $300 million | 2.78 | % | Mar-2021 | 300,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Term Loan - $100 million | 2.44 | % | Feb-2022 | — | 100,000 | — | — | — | — | 100,000 | — | ||||||||||||||||||||||||||
Term Loan - $150 million | 2.98 | % | Feb-2024 | — | 150,000 | — | — | — | — | — | 150,000 | ||||||||||||||||||||||||||
$300 million unsecured notes | 2.03 | % | Jan-2021 | — | 300,000 | — | — | — | 300,000 | — | — | ||||||||||||||||||||||||||
389,467 | 658,831 | 52,976 | 34,155 | 21,700 | 300,000 | 100,000 | 150,000 | ||||||||||||||||||||||||||||||
Total indebtedness - excluding Credit Facility | $ | 7,076,758 | $ | 7,404,313 | $ | 83,921 | $ | 119,417 | $ | 794,053 | $ | 581,395 | $ | 553,795 | $ | 5,271,732 |
(1) | Includes credit enhancement fees, facility fees, trustees’ fees, the impact of interest rate hedges, offering costs, mark to market amortization and other fees. |
(2) | Balances outstanding represent total amounts due at maturity, and exclude deferred financing costs and debt discount for the unsecured notes of $47,236 and $36,698 as of December 31, 2017 and 2016, respectively, deferred financing costs and debt discount associated with secured notes of $27,607 as of December 31, 2017, and deferred financing costs net of premium of $9,180 as of December 31, 2016, as reflected on our Consolidated Balance Sheets included elsewhere in this report. |
(3) | In February 2018, we repaid this borrowing in advance of its scheduled maturity date, incurring a prepayment penalty of $152. |
(4) | Maturity date reflects the contractual maturity of the underlying bond. There is also an associated earlier credit enhancement maturity date. |
(5) | In February 2017, we repaid this borrowing at par at its scheduled maturity date. |
(6) | Financed by variable rate debt, but interest rate is capped through an interest rate protection agreement. |
(7) | During 2017, we repaid this borrowing in advance of its scheduled maturity date. |
(8) | During 2017, we repaid a borrowing secured by this community and subsequently refinanced the secured borrowing. |
Debt (2) | ||||||||||||||||||||
Unconsolidated Real Estate Investments | Company Ownership Percentage | # of Apartment Homes | Total Capitalized Cost (1) | Principal Amount | Type | Interest Rate (3) | Maturity Date | |||||||||||||
U.S. Fund | ||||||||||||||||||||
1. Avalon Studio 4121—Studio City, CA | 149 | $ | 57,078 | $ | 28,920 | Fixed | 3.34 | % | Nov 2022 | |||||||||||
2. Avalon Marina Bay—Marina del Rey, CA (4) | 205 | 77,186 | 51,300 | Fixed | 1.56 | % | Dec 2020 | |||||||||||||
3. Avalon Venice on Rose—Venice, CA | 70 | 57,297 | 29,035 | Fixed | 3.28 | % | Jun 2020 | |||||||||||||
4. Avalon Station 250—Dedham, MA | 285 | 96,896 | 56,259 | Fixed | 3.73 | % | Sep 2022 | |||||||||||||
5. Avalon Grosvenor Tower—Bethesda, MD | 237 | 80,051 | 43,605 | Fixed | 3.74 | % | Sep 2022 | |||||||||||||
6. Avalon Kirkland at Carillon—Kirkland, WA | 131 | 60,730 | 28,350 | Fixed | 3.75 | % | Feb 2019 | |||||||||||||
Total U.S. Fund | 28.6 | % | 1,077 | $ | 429,238 | $ | 237,469 | 3.16 | % | |||||||||||
AC JV | ||||||||||||||||||||
1. Avalon North Point—Cambridge, MA (5) | 426 | $ | 188,122 | $ | 111,653 | Fixed | 6.00 | % | Aug 2021 | |||||||||||
2. Avalon Woodland Park—Herndon, VA (5) | 392 | 86,336 | 50,647 | Fixed | 6.00 | % | Aug 2021 | |||||||||||||
3. Avalon North Point Lofts — Cambridge, MA | 103 | 26,805 | — | N/A | N/A | N/A | ||||||||||||||
Total AC JV | 20.0 | % | 921 | $ | 301,263 | $ | 162,300 | 6.00 | % | |||||||||||
Other Operating Joint Ventures | ||||||||||||||||||||
1. MVP I, LLC | 25.0 | % | 313 | $ | 125,228 | $ | 103,000 | Fixed | 3.24 | % | Jul 2025 | |||||||||
2. Brandywine Apartments of Maryland, LLC | 28.7 | % | 305 | 19,382 | 22,760 | Fixed | 3.40 | % | Jun 2028 | |||||||||||
Total Other Joint Ventures | 618 | $ | 144,610 | $ | 125,760 | 3.27 | % | |||||||||||||
Total Unconsolidated Investments | 2,616 | $ | 875,111 | $ | 525,529 | 4.06 | % |
(1) | Represents total capitalized cost as of December 31, 2017. |
(2) | We have not guaranteed the debt of unconsolidated investees and bear no responsibility for the repayment. |
(3) | Represents weighted average rate on outstanding debt as of December 31, 2017. |
(4) | Borrowing on this community is a variable rate loan which has been converted to a fixed rate borrowing with an interest rate swap. |
(5) | Borrowing is comprised of loans made by the equity investors in the venture in proportion to their equity interests. |
Payments due by period | |||||||||||||||||||
Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||
Debt Obligations | $ | 7,404,313 | $ | 83,921 | $ | 913,470 | $ | 1,135,190 | $ | 5,271,732 | |||||||||
Interest on Debt Obligations | 2,812,359 | 246,686 | 487,966 | 387,332 | 1,690,375 | ||||||||||||||
Operating Lease Obligations (1) | 1,153,923 | 21,051 | 39,845 | 40,219 | 1,052,808 | ||||||||||||||
Capital Lease Obligations (1) (2) | 49,363 | 1,073 | 2,152 | 2,162 | 43,976 | ||||||||||||||
$ | 11,419,958 | $ | 352,731 | $ | 1,443,433 | $ | 1,564,903 | $ | 8,058,891 |
(1) | Includes land leases expiring between October 2026 and March 2142. Amounts do not include any adjustment for purchase options available under the land leases. |
(2) | Aggregate capital lease payments include $25,961 in interest costs. |
• | our potential development, redevelopment, acquisition or disposition of communities; |
• | the timing and cost of completion of apartment communities under construction, reconstruction, development or redevelopment; |
• | the timing of lease-up, occupancy and stabilization of apartment communities; |
• | the pursuit of land on which we are considering future development; |
• | the anticipated operating performance of our communities; |
• | cost, yield, revenue, NOI and earnings estimates; |
• | our declaration or payment of dividends; |
• | our joint venture and discretionary fund activities; |
• | our policies regarding investments, indebtedness, acquisitions, dispositions, financings and other matters; |
• | our qualification as a REIT under the Internal Revenue Code; |
• | the real estate markets in Northern and Southern California and markets in selected states in the Mid-Atlantic, New England, Metro New York/New Jersey and Pacific Northwest regions of the United States and in general; |
• | the availability of debt and equity financing; |
• | interest rates; |
• | general economic conditions including the potential impacts from current economic conditions; |
• | trends affecting our financial condition or results of operations; and |
• | the impact of legal proceedings relating to the Edgewater casualty loss and related matters, including liability to third parties resulting therefrom. |
• | we may fail to secure development opportunities due to an inability to reach agreements with third parties to obtain land at attractive prices or to obtain desired zoning and other local approvals; |
• | we may abandon or defer development opportunities for a number of reasons, including changes in local market conditions which make development less desirable, increases in costs of development, increases in the cost of capital or lack of capital availability, resulting in losses; |
• | construction costs of a community may exceed our original estimates; |
• | we may not complete construction and lease-up of communities under development or redevelopment on schedule, resulting in increased interest costs and construction costs and a decrease in our expected rental revenues; |
• | occupancy rates and market rents may be adversely affected by competition and local economic and market conditions which are beyond our control; |
• | financing may not be available on favorable terms or at all, and our cash flows from operations and access to cost effective capital may be insufficient for the development of our pipeline which could limit our pursuit of opportunities; |
• | our cash flows may be insufficient to meet required payments of principal and interest, and we may be unable to refinance existing indebtedness or the terms of such refinancing may not be as favorable as the terms of existing indebtedness; |
• | we may be unsuccessful in our management of the U.S. Fund, the AC JV or the REIT vehicles that are used with each respective joint venture; |
• | we may be unsuccessful in managing changes in our portfolio composition; and |
• | our expectations, estimates and assumptions as of the date of this filing regarding the outcome of investigations and/or legal proceedings resulting from the Edgewater casualty loss, are subject to change. |
• | For entities not considered to be variable interest entities, the nature of the entity changed such that it would be considered a variable interest entity and we were considered the primary beneficiary. |
• | For entities in which we do not hold a controlling voting and/or variable interest, the contractual arrangement changed resulting in our investment interest being either a controlling voting and/or variable interest. |
(a) | Evaluation of Disclosure Controls and Procedures. As required by Rule 13a-15 under the Securities Exchange Act of 1934, as of the end of the period covered by this report, the Company carried out an evaluation under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. We continue to review and document our disclosure controls and procedures, including our internal controls and procedures for financial reporting, and may from time to time make changes aimed at enhancing their effectiveness and to ensure that our systems evolve with our business. |
(b) | Management's Report on Internal Control Over Financial Reporting. Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2017 based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on that evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2017. |
(c) | Changes in Internal Control Over Financial Reporting. During 2017, the Company implemented a new construction and development management system that improves the efficiency and effectiveness of the Company’s operational and financial accounting processes for construction and development related activity. Consistent with any process change that we implement, the design of the internal controls has and will continue to be evaluated for effectiveness as part of our overall assessment of the effectiveness of our disclosure controls and procedures. We expect that the implementation of this system will improve our internal controls over financial reporting as related to construction and development related operational and financial accounting functions. |
(a) | (b) | (c) | |||||||
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | ||||||
Equity compensation plans approved by security holders (1) | 682,104 | (2) | $ | 122.91 | (3) | 7,994,292 | |||
Equity compensation plans not approved by security holders (4) | — | N/A | 681,284 | ||||||
Total | 682,104 | $ | 122.91 | (3) | 8,675,576 |
(1) | Consists of the 2009 Plan and the 1994 Plan. |
(2) | Includes 20,813 deferred units granted under the 2009 Plan and the 1994 Plan, which, subject to vesting requirements, will convert in the future to common stock on a one-for-one basis. Also includes the maximum number of shares that may be issued upon settlement of outstanding Performance Awards awarded to officers and maturing on December 31, 2017, 2018 and 2019. Does not include 367,561 shares of restricted stock that are outstanding and that are already reflected in the Company's outstanding shares. |
(3) | Excludes performance awards and deferred units granted under the 2009 Plan and the 1994 Plan, which, subject to vesting requirements, will convert in the future to common stock on a one-for-one basis. |
(4) | Consists of the ESPP. |
15(a)(1) Financial Statements | |
Index to Financial Statements | |
Consolidated Financial Statements and Financial Statement Schedule: | |
15(a)(2) Financial Statement Schedule | |
All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and therefore have been omitted. | |
15(a)(3) Exhibits | |
Exhibit No. | Description | |||
3(i).1 | — | |||
3(i).2 | — | |||
3(i).3 | — | |||
3(ii).1 | — | |||
3(ii).2 | — | |||
3(ii).3 | — | |||
4.1 | — | |||
4.2 | — | |||
4.3 | — | |||
4.4 | — | |||
4.5 | — | |||
4.6 | __ | |||
4.7 | — | |||
4.8 | — | |||
4.9 | — | |||
4.10 | — |
10.1 | — | |||
10.2 | — | |||
10.3 | — | |||
10.4 | — | |||
10.5+ | — | |||
10.6+ | — | |||
10.7+ | — | |||
10.8+ | — | |||
10.9+ | — | |||
10.10+ | — | |||
10.11+ | — | |||
10.12+ | — | |||
10.13+ | — | |||
10.14+ | — | |||
10.15+ | — | |||
10.16+ | — | |||
10.17+ | — | |||
10.18+ | — |
10.19+ | — | |||
10.20+ | — | |||
10.21+ | — | |||
10.22+ | — | |||
10.23+ | — | |||
10.24+ | — | |||
10.25 | — | |||
10.26+ | — | |||
10.27+ | — | |||
10.28+ | — | |||
10.29 | — | |||
10.30 | — |
10.31 | — | |||
10.32 | — | |||
10.33 | — | |||
10.34 | — | |||
10.35 | — | |||
12.1 | — | |||
21.1 | — | |||
23.1 | — | |||
31.1 | — | |||
31.2 | — | |||
32 | — | |||
101 | — | XBRL (Extensible Business Reporting Language). The following materials from AvalonBay Communities, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2017, formatted in XBRL: (i) consolidated balance sheets, (ii) consolidated statements of comprehensive income, (iii) consolidated statements of equity, (iv) consolidated statements of cash flows and (v) notes to consolidated financial statements. |
+ | Management contract or compensatory plan or arrangement required to be filed or incorporated by reference as an exhibit to this Form 10-K pursuant to Item 15(a)(3) of Form 10-K. |
AvalonBay Communities, Inc. | ||||
Date: February 23, 2018 | By: | /s/ TIMOTHY J. NAUGHTON | ||
Timothy J. Naughton, Director, Chairman, Chief Executive Officer and President (Principal Executive Officer) |
Date: February 23, 2018 | By: | /s/ TIMOTHY J. NAUGHTON | ||
Timothy J. Naughton, Director, Chairman, Chief Executive Officer and President (Principal Executive Officer) | ||||
Date: February 23, 2018 | By: | /s/ KEVIN P. O’SHEA | ||
Kevin P. O’Shea, Chief Financial Officer (Principal Financial Officer) | ||||
Date: February 23, 2018 | By: | /s/ KERI A. SHEA | ||
Keri A. Shea, Senior Vice President—Finance & Treasurer (Principal Accounting Officer) | ||||
Date: February 23, 2018 | By: | /s/ GLYN F. AEPPEL | ||
Glyn F. Aeppel, Director | ||||
Date: February 23, 2018 | By: | /s/ TERRY S. BROWN | ||
Terry S. Brown, Director | ||||
Date: February 23, 2018 | By: | /s/ ALAN B. BUCKELEW | ||
Alan B. Buckelew, Director | ||||
Date: February 23, 2018 | By: | /s/ RONALD L. HAVNER, JR. | ||
Ronald L. Havner, Jr., Director | ||||
Date: February 23, 2018 | By: | /s/ STEPHEN P. HILLS | ||
Stephen P. Hills, Director | ||||
Date: February 23, 2018 | By: | /s/ RICHARD J. LIEB | ||
Richard J. Lieb, Director | ||||
Date: February 23, 2018 | By: | /s/ PETER S. RUMMELL | ||
Peter S. Rummell, Director | ||||
Date: February 23, 2018 | By: | /s/ H. JAY SARLES | ||
H. Jay Sarles, Director | ||||
Date: February 23, 2018 | By: | /s/ SUSAN SWANEZY | ||
Susan Swanezy, Director | ||||
Date: February 23, 2018 | By: | /s/ W. EDWARD WALTER | ||
W. Edward Walter, Director |
12/31/17 | 12/31/16 | ||||||
ASSETS | |||||||
Real estate: | |||||||
Land and improvements | $ | 4,237,318 | $ | 3,941,250 | |||
Buildings and improvements | 15,708,666 | 14,314,981 | |||||
Furniture, fixtures and equipment | 615,288 | 532,994 | |||||
20,561,272 | 18,789,225 | ||||||
Less accumulated depreciation | (4,218,379 | ) | (3,743,632 | ) | |||
Net operating real estate | 16,342,893 | 15,045,593 | |||||
Construction in progress, including land | 1,306,300 | 1,882,262 | |||||
Land held for development | 68,364 | 84,293 | |||||
Real estate assets held for sale, net | — | 20,846 | |||||
Total real estate, net | 17,717,557 | 17,032,994 | |||||
Cash and cash equivalents | 67,088 | 214,994 | |||||
Cash in escrow | 134,818 | 114,983 | |||||
Resident security deposits | 32,686 | 32,071 | |||||
Investments in unconsolidated real estate entities | 163,475 | 175,116 | |||||
Deferred development costs | 45,819 | 40,179 | |||||
Prepaid expenses and other assets | 253,378 | 256,934 | |||||
Total assets | $ | 18,414,821 | $ | 17,867,271 | |||
LIABILITIES AND EQUITY | |||||||
Unsecured notes, net | $ | 5,852,764 | $ | 4,463,302 | |||
Variable rate unsecured credit facility | — | — | |||||
Mortgage notes payable, net | 1,476,706 | 2,567,578 | |||||
Dividends payable | 196,094 | 185,397 | |||||
Payables for construction | 85,377 | 100,998 | |||||
Accrued expenses and other liabilities | 308,189 | 274,676 | |||||
Accrued interest payable | 43,116 | 38,307 | |||||
Resident security deposits | 58,473 | 57,023 | |||||
Liabilities related to real estate assets held for sale | — | 808 | |||||
Total liabilities | 8,020,719 | 7,688,089 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests | 6,056 | 7,766 | |||||
Equity: | |||||||
Preferred stock, $0.01 par value; $25 liquidation preference; 50,000,000 shares authorized at December 31, 2017 and 2016; zero shares issued and outstanding at December 31, 2017 and 2016 | — | — | |||||
Common stock, $0.01 par value; 280,000,000 shares authorized at December 31, 2017 and 2016; 138,094,154 and 137,330,904 shares issued and outstanding at December 31, 2017 and 2016, respectively | 1,381 | 1,373 | |||||
Additional paid-in capital | 10,235,475 | 10,105,654 | |||||
Accumulated earnings less dividends | 188,609 | 94,899 | |||||
Accumulated other comprehensive loss | (37,419 | ) | (30,510 | ) | |||
Total equity | 10,388,046 | 10,171,416 | |||||
Total liabilities and equity | $ | 18,414,821 | $ | 17,867,271 |
For the year ended | |||||||||||
12/31/17 | 12/31/16 | 12/31/15 | |||||||||
Revenue: | |||||||||||
Rental and other income | $ | 2,154,481 | $ | 2,039,656 | $ | 1,846,081 | |||||
Management, development and other fees | 4,147 | 5,599 | 9,947 | ||||||||
Total revenue | 2,158,628 | 2,045,255 | 1,856,028 | ||||||||
Expenses: | |||||||||||
Operating expenses, excluding property taxes | 503,946 | 478,437 | 448,747 | ||||||||
Property taxes | 221,375 | 204,837 | 193,499 | ||||||||
Interest expense, net | 199,661 | 187,510 | 175,615 | ||||||||
Loss (gain) on extinguishment of debt, net | 25,472 | 7,075 | (26,736 | ) | |||||||
Depreciation expense | 584,150 | 531,434 | 477,923 | ||||||||
General and administrative expense | 50,673 | 45,771 | 42,774 | ||||||||
Expensed acquisition, development and other pursuit costs, net of recoveries | 2,736 | 9,922 | 6,822 | ||||||||
Casualty and impairment loss (gain), net | 6,250 | (3,935 | ) | (10,542 | ) | ||||||
Total expenses | 1,594,263 | 1,461,051 | 1,308,102 | ||||||||
Income before equity in income of unconsolidated real estate entities, gain on sale of communities, (loss) gain on other real estate transactions, and income taxes | 564,365 | 584,204 | 547,926 | ||||||||
Equity in income of unconsolidated real estate entities | 70,744 | 64,962 | 70,018 | ||||||||
Gain on sale of communities | 252,599 | 374,623 | 115,625 | ||||||||
(Loss) gain on other real estate transactions | (10,907 | ) | 10,224 | 9,647 | |||||||
Income before income taxes | 876,801 | 1,034,013 | 743,216 | ||||||||
Income tax expense | 141 | 305 | 1,483 | ||||||||
Net income | 876,660 | 1,033,708 | 741,733 | ||||||||
Net loss attributable to noncontrolling interests | 261 | 294 | 305 | ||||||||
Net income attributable to common stockholders | $ | 876,921 | $ | 1,034,002 | $ | 742,038 | |||||
Other comprehensive income (loss): | |||||||||||
(Loss) income on cash flow hedges | (13,979 | ) | (5,556 | ) | 5,354 | ||||||
Cash flow hedge losses reclassified to earnings | 7,070 | 6,433 | 5,774 | ||||||||
Comprehensive income | $ | 870,012 | $ | 1,034,879 | $ | 753,166 | |||||
Earnings per common share—basic: | |||||||||||
Net income attributable to common stockholders | $ | 6.36 | $ | 7.53 | $ | 5.54 | |||||
Earnings per common share—diluted: | |||||||||||
Net income attributable to common stockholders | $ | 6.35 | $ | 7.52 | $ | 5.51 |
Shares issued | Additional paid-in capital | Accumulated earnings less dividends | Accumulated other comprehensive loss | Total AvalonBay stockholders' equity | |||||||||||||||||||||||||||||||||
Preferred stock | Common stock | Preferred stock | Common stock | Noncontrolling interests | Total equity | ||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | — | 132,050,382 | $ | — | $ | 1,320 | $ | 9,354,685 | $ | (267,085 | ) | $ | (42,515 | ) | $ | 9,046,405 | $ | — | $ | 9,046,405 | |||||||||||||||||
Net income attributable to common stockholders | — | — | — | — | — | 742,038 | — | 742,038 | — | 742,038 | |||||||||||||||||||||||||||
Income on cash flow hedges | — | — | — | — | — | — | 5,354 | 5,354 | — | 5,354 | |||||||||||||||||||||||||||
Cash flow hedge losses reclassified to earnings | — | — | — | — | — | — | 5,774 | 5,774 | — | 5,774 | |||||||||||||||||||||||||||
Change in redemption value and acquisition of noncontrolling interest | — | — | — | — | (1,088 | ) | 2,053 | — | 965 | — | 965 | ||||||||||||||||||||||||||
Dividends declared to common stockholders | — | — | — | — | — | (673,670 | ) | — | (673,670 | ) | — | (673,670 | ) | ||||||||||||||||||||||||
Issuance of common stock, net of withholdings | — | 4,951,649 | — | 50 | 688,677 | (1,325 | ) | — | 687,402 | — | 687,402 | ||||||||||||||||||||||||||
Amortization of deferred compensation | — | — | — | — | 26,258 | — | — | 26,258 | — | 26,258 | |||||||||||||||||||||||||||
Balance at December 31, 2015 | — | 137,002,031 | — | 1,370 | 10,068,532 | (197,989 | ) | (31,387 | ) | 9,840,526 | — | 9,840,526 | |||||||||||||||||||||||||
Net income attributable to common stockholders | — | — | — | — | — | 1,034,002 | — | 1,034,002 | — | 1,034,002 | |||||||||||||||||||||||||||
Loss on cash flow hedges | — | — | — | — | — | — | (5,556 | ) | (5,556 | ) | — | (5,556 | ) | ||||||||||||||||||||||||
Cash flow hedge losses reclassified to earnings | — | — | — | — | — | — | 6,433 | 6,433 | — | 6,433 | |||||||||||||||||||||||||||
Change in redemption value and acquisition of noncontrolling interest | — | — | — | — | — | 1,489 | — | 1,489 | — | 1,489 | |||||||||||||||||||||||||||
Dividends declared to common stockholders | — | — | — | — | — | (741,313 | ) | — | (741,313 | ) | — | (741,313 | ) | ||||||||||||||||||||||||
Issuance of common stock, net of withholdings | — | 328,873 | — | 3 | 11,982 | (1,290 | ) | — | 10,695 | — | 10,695 | ||||||||||||||||||||||||||
Amortization of deferred compensation | — | — | — | — | 25,140 | — | — | 25,140 | — | 25,140 | |||||||||||||||||||||||||||
Balance at December 31, 2016 | — | 137,330,904 | — | 1,373 | 10,105,654 | 94,899 | (30,510 | ) | 10,171,416 | — | 10,171,416 | ||||||||||||||||||||||||||
Net income attributable to common stockholders | — | — | — | — | — | 876,921 | — | 876,921 | — | 876,921 | |||||||||||||||||||||||||||
Loss on cash flow hedges | — | — | — | — | — | — | (13,979 | ) | (13,979 | ) | — | (13,979 | ) | ||||||||||||||||||||||||
Cash flow hedge losses reclassified to earnings | — | — | — | — | — | — | 7,070 | 7,070 | — | 7,070 | |||||||||||||||||||||||||||
Change in redemption value and acquisition of noncontrolling interest | — | — | — | — | — | 2,026 | — | 2,026 | — | 2,026 | |||||||||||||||||||||||||||
Dividends declared to common stockholders | — | — | — | — | — | (783,912 | ) | — | (783,912 | ) | — | (783,912 | ) | ||||||||||||||||||||||||
Issuance of common stock, net of withholdings | — | 763,250 | — | 8 | 101,621 | (1,325 | ) | — | 100,304 | — | 100,304 | ||||||||||||||||||||||||||
Amortization of deferred compensation | — | — | — | — | 28,200 | — | — | 28,200 | — | 28,200 | |||||||||||||||||||||||||||
Balance at December 31, 2017 | — | 138,094,154 | $ | — | $ | 1,381 | $ | 10,235,475 | $ | 188,609 | $ | (37,419 | ) | $ | 10,388,046 | $ | — | $ | 10,388,046 |
For the year ended | |||||||||||
12/31/17 | 12/31/16 | 12/31/15 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 876,660 | $ | 1,033,708 | $ | 741,733 | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation expense | 584,150 | 531,434 | 477,923 | ||||||||
Amortization of deferred financing costs | 7,657 | 7,661 | 6,871 | ||||||||
Amortization of debt premium | (5,915 | ) | (18,866 | ) | (24,261 | ) | |||||
Loss (gain) on extinguishment of debt, net | 25,472 | 7,075 | (26,736 | ) | |||||||
Amortization of stock-based compensation | 17,920 | 15,082 | 15,321 | ||||||||
Equity in (income) loss of, and return on, unconsolidated real estate entities and noncontrolling interests, net of eliminations | (19,798 | ) | 8,870 | 12,225 | |||||||
Casualty and impairment loss (gain), net | 8,568 | (3,935 | ) | (17,303 | ) | ||||||
Abandonment of development pursuits | 388 | 1,743 | — | ||||||||
Cash flow hedge losses reclassified to earnings | 7,070 | 6,433 | 5,774 | ||||||||
Gain on sale of real estate assets | (281,745 | ) | (442,916 | ) | (158,852 | ) | |||||
Decrease (increase) in resident security deposits, prepaid expenses and other assets | 3,076 | (5,403 | ) | 12,783 | |||||||
Increase in accrued expenses, other liabilities and accrued interest payable | 32,754 | 19,386 | 29,189 | ||||||||
Net cash provided by operating activities | 1,256,257 | 1,160,272 | 1,074,667 | ||||||||
Cash flows from investing activities: | |||||||||||
Development/redevelopment of real estate assets including land acquisitions and deferred development costs | (979,947 | ) | (1,201,026 | ) | (1,569,326 | ) | |||||
Acquisition of real estate assets, including partnership interest | (462,317 | ) | (393,316 | ) | — | ||||||
Capital expenditures - existing real estate assets | (65,181 | ) | (66,971 | ) | (48,170 | ) | |||||
Capital expenditures - non-real estate assets | (8,809 | ) | (5,881 | ) | (7,695 | ) | |||||
Proceeds from sale of real estate, net of selling costs | 503,039 | 532,717 | 282,163 | ||||||||
Insurance proceeds for property damage claims | 16,233 | 17,196 | 44,142 | ||||||||
Mortgage note receivable lending | (17,590 | ) | (19,115 | ) | — | ||||||
(Decrease) increase in payables for construction | (15,621 | ) | 2,196 | (3,230 | ) | ||||||
Distributions from unconsolidated real estate entities | 89,305 | 111,598 | 109,181 | ||||||||
Investments in unconsolidated real estate entities | (24,493 | ) | (9,750 | ) | (6,582 | ) | |||||
Net cash used in investing activities | (965,381 | ) | (1,032,352 | ) | (1,199,517 | ) | |||||
Cash flows from financing activities: | |||||||||||
Issuance of common stock, net | 111,093 | 15,526 | 690,184 | ||||||||
Dividends paid | (772,657 | ) | (726,749 | ) | (655,248 | ) | |||||
Issuance of mortgage notes payable | 206,800 | — | — | ||||||||
Repayments of mortgage notes payable, including prepayment penalties | (1,313,025 | ) | (168,076 | ) | (853,604 | ) | |||||
Issuance of unsecured notes | 1,696,826 | 1,122,488 | 873,088 | ||||||||
Repayment of unsecured notes, including prepayment penalties | (300,000 | ) | (504,403 | ) | — | ||||||
Payment of deferred financing costs | (17,552 | ) | (16,240 | ) | (7,343 | ) | |||||
Redemption of noncontrolling interest and units for cash by minority partners | — | — | (1,088 | ) | |||||||
Payment of capital lease obligation | (18,951 | ) | — | — | |||||||
Receipts (payments) for termination of forward interest rate swaps | 391 | (14,847 | ) | — | |||||||
Payments related to tax withholding for share-based compensation | (10,450 | ) | (8,562 | ) | (6,076 | ) | |||||
Distributions to DownREIT partnership unitholders | (42 | ) | (41 | ) | (38 | ) | |||||
Contributions from joint venture and profit-sharing partners | 1,038 | — | — | ||||||||
Distributions to joint venture and profit-sharing partners | (418 | ) | (407 | ) | (372 | ) | |||||
Preferred interest obligation redemption and dividends | (2,000 | ) | (1,960 | ) | (14,410 | ) | |||||
Net cash (used in) provided by financing activities | (418,947 | ) | (303,271 | ) | 25,093 | ||||||
Net decrease in cash and cash equivalents | (128,071 | ) | (175,351 | ) | (99,757 | ) | |||||
Cash and cash equivalents and restricted cash, beginning of year | 329,977 | 505,328 | 605,085 | ||||||||
Cash and cash equivalents and restricted cash, end of year | $ | 201,906 | $ | 329,977 | $ | 505,328 | |||||
Cash paid during the year for interest, net of amount capitalized | $ | 207,842 | $ | 194,059 | $ | 188,782 |
For the year ended | ||||||||||||
12/31/17 | 12/31/16 | 12/31/15 | ||||||||||
Cash and cash equivalents | $ | 67,088 | $ | 214,994 | $ | 400,507 | ||||||
Cash in escrow | 134,818 | 114,983 | 104,821 | |||||||||
Cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | $ | 201,906 | $ | 329,977 | $ | 505,328 |
• | As described in Note 4, “Equity,” 201,824 shares of common stock were issued as part of the Company's stock based compensation plans, of which 128,482 shares related to the conversion of performance awards to restricted shares, and the remaining 73,342 shares valued at $13,171,000 were issued in connection with new stock grants; 3,058 shares valued at $558,000 were issued through the Company’s dividend reinvestment plan; 60,319 shares valued at $10,542,000 were withheld to satisfy employees’ tax withholding and other liabilities; and 3,388 restricted shares with an aggregate value of $588,000 previously issued in connection with employee compensation were canceled upon forfeiture. |
• | Common stock dividends declared but not paid totaled $196,094,000. |
• | The Company recorded a decrease of $65,000 in redeemable noncontrolling interest with a corresponding increase to accumulated earnings less dividends to adjust the redemption value associated with the put options held by joint venture partners and DownREIT partnership units. For further discussion of the nature and valuation of these items, see Note 11, “Fair Value.” |
• | The Company recorded a decrease in prepaid expenses and other assets of $12,114,000 and an increase in other liabilities of $1,171,000, and a corresponding adjustment to other comprehensive income, and reclassified $7,070,000 of cash flow hedge losses from other comprehensive income to interest expense, net, to record the impact of the Company’s derivative and hedge accounting activity. |
• | As discussed in Note 1, "Organization, Basis of Presentation and Significant Accounting Policies," the Company recognized a non-cash charge of $16,361,000 to write-off the net book value of the fixed assets destroyed by the fire that occurred in February 2017 at the Company's Avalon Maplewood Development Community ("Maplewood"). |
• | The Company issued 197,018 shares of common stock as part of the Company's stock based compensation plans, of which 115,618 shares related to the conversion of performance awards to restricted shares, and the remaining 81,400 shares valued at $13,217,000 were issued in connection with new stock grants; 44,327 shares valued at $3,894,000 were issued in conjunction with the conversion of deferred stock awards; 2,396 shares valued at $424,000 were issued through the Company’s dividend reinvestment plan; 53,453 shares valued at $8,356,000 were withheld to satisfy employees’ tax withholding and other liabilities; and 4,262 restricted shares with an aggregate value of $694,000 previously issued in connection with employee compensation were canceled upon forfeiture. |
• | Common stock dividends declared but not paid totaled $185,397,000. |
• | The Company recorded a decrease of $1,489,000 in redeemable noncontrolling interest with a corresponding increase to accumulated earnings less dividends to adjust the redemption value associated with the put options held by joint venture partners and DownREIT partnership units. |
• | The Company recorded an increase in prepaid expenses and other assets and a corresponding gain to other comprehensive income of $12,085,000, and reclassified $6,433,000 of cash flow hedge losses from other comprehensive income to interest expense, net, to record the impact of the Company’s derivative and hedge accounting activity. |
• | The Company assumed fixed rate indebtedness with a principal amount of $67,904,000 in conjunction with the acquisition of Avalon Hoboken. |
• | The Company assumed fixed rate indebtedness with a principal amount of $70,507,000 in conjunction with the acquisition of Avalon Columbia Pike. |
• | The Company completed the construction of and sold an affordable restricted apartment building, containing 77 apartment homes, which is adjacent to a completed Development Community. The Company received a mortgage note in the amount of $18,643,000 as consideration for the sale, which is secured by the underlying real estate. |
• | The Company issued 157,779 shares of common stock as part of the Company's stock based compensation plan, of which 95,826 shares related to the conversion of performance awards to restricted shares, and the remaining 61,953 shares valued at $10,720,000 were issued in connection with new stock grants; 46,589 shares valued at $3,552,000 were issued in conjunction with the conversion of deferred stock awards; 2,142 shares valued at $372,000 were issued through the Company’s dividend reinvestment plan; 45,090 shares valued at $5,979,000 were withheld to satisfy employees’ tax withholding and other liabilities; and 1,529 restricted shares with an aggregate value of $726,000 previously issued in connection with employee compensation were canceled upon forfeiture. |
• | Common stock dividends declared but not paid totaled $171,257,000. |
• | The Company recorded a decrease of $2,053,000 in redeemable noncontrolling interest with a corresponding increase to accumulated earnings less dividends to adjust the redemption value associated with the put options held by joint venture partners and DownREIT partnership units. |
• | The Company recorded an increase in prepaid expenses and other assets and a corresponding gain to other comprehensive income of $5,354,000 and reclassified $5,774,000 of deferred cash flow hedge losses from other comprehensive income to interest expense, net, to record the impact of the Company’s derivative and hedge accounting activity. |
• | The Company recognized a charge of $26,039,000 to write off the net book value of the fixed assets destroyed by the fire that occurred in 2015 at Avalon at Edgewater (“Edgewater”) and winter storm damage at several of the Company's communities in its Northeast markets. |
• | Management fees - The Company has investment interests in real estate joint ventures, some of which the Company manages (i) the venture, (ii) the associated operating communities owned by those ventures and/or (iii) the development or redevelopment of those operating communities. For these activities, the Company receives asset management, property management, development and/or redevelopment fee revenue. The performance obligation is the management of the venture, community or other defined task such as the development or redevelopment of the community. While the individual activities that comprise the performance obligation of the management fees can vary day to day, the nature of the overall performance obligation to provide management service is the same and considered by the Company to be a series of services that have the same pattern of transfer to the customer and the same method to measure progress toward satisfaction of the performance obligation. The Company recognizes revenue for management fees as earned on a monthly basis and has concluded this is appropriate under the new standard. |
• | Non-recurring rental and non-rental related income - The Company recognizes revenue for rental related income not included as a components of a lease, such as reservation and application fees, as well as for non-rental related income, as earned, and has concluded this is appropriate under the new standard. |
• | Gains or losses on sales of real estate - The Company accounts for the sale of real estate assets and any related gain recognition in accordance with the accounting guidance applicable to sales of real estate, which establishes standards for recognition of profit on all real estate sales transactions, other than retail land sales. The Company recognizes the sale, and associated gain or loss from the disposition, provided that the earnings process is complete and the Company does not have significant continuing involvement. Subsequent to the adoption of the new standard, a gain or loss is recognized when the criteria for an asset to be derecognized are met, which include when (i) a contract exists and (ii) the buyer obtained control of the nonfinancial asset that was sold. As a result, the Company may recognize a gain on a real estate disposition transaction that previously did not qualify as a sale or for full profit recognition due to the timing of the transfer of control or certain forms of continuing involvement. In addition, subsequent to the adoption of the new standard, a gain or loss recognized on the sale of a nonfinancial asset to an unconsolidated entity will be recognized at 100%, and not the Company’s proportionate ownership percentage. |
2017 Estimate | 2016 Actual | 2015 Actual | |||||||||
Net income attributable to common stockholders | $ | 876,921 | $ | 1,034,002 | $ | 742,038 | |||||
GAAP gain on sale of communities (in excess of) less than tax gain | (85,873 | ) | (195,029 | ) | (20,900 | ) | |||||
Depreciation/amortization timing differences on real estate | 11,868 | (947 | ) | (24,657 | ) | ||||||
Amortization of debt/mark to market interest | (17,430 | ) | (18,985 | ) | (64,676 | ) | |||||
Tax compensation expense less than (in excess of) GAAP | (3,828 | ) | 9,821 | (1,244 | ) | ||||||
Casualty and impairment (gain) loss, net | 6,250 | (657 | ) | (10,542 | ) | ||||||
Other adjustments | (40,381 | ) | 11,533 | (12,829 | ) | ||||||
Taxable net income | $ | 747,527 | $ | 839,738 | $ | 607,190 |
2017 | 2016 | 2015 | ||||||
Ordinary income | 75 | % | 68 | % | 83 | % | ||
20% capital gain | 18 | % | 26 | % | 12 | % | ||
Unrecaptured §1250 gain | 7 | % | 6 | % | 5 | % |
For the year ended | |||||||||||
12/31/17 | 12/31/16 | 12/31/15 | |||||||||
Basic and diluted shares outstanding | |||||||||||
Weighted average common shares—basic | 137,523,771 | 136,928,251 | 133,565,711 | ||||||||
Weighted average DownREIT units outstanding | 7,500 | 7,500 | 7,500 | ||||||||
Effect of dilutive securities | 535,415 | 525,886 | 1,019,966 | ||||||||
Weighted average common shares—diluted | 138,066,686 | 137,461,637 | 134,593,177 | ||||||||
Calculation of Earnings per Share—basic | |||||||||||
Net income attributable to common stockholders | $ | 876,921 | $ | 1,034,002 | $ | 742,038 | |||||
Net income allocated to unvested restricted shares | (2,463 | ) | (2,610 | ) | (1,774 | ) | |||||
Net income attributable to common stockholders, adjusted | $ | 874,458 | $ | 1,031,392 | $ | 740,264 | |||||
Weighted average common shares—basic | 137,523,771 | 136,928,251 | 133,565,711 | ||||||||
Earnings per common share—basic | $ | 6.36 | $ | 7.53 | $ | 5.54 | |||||
Calculation of Earnings per Share—diluted | |||||||||||
Net income attributable to common stockholders | $ | 876,921 | $ | 1,034,002 | $ | 742,038 | |||||
Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships, including discontinued operations | 42 | 41 | 38 | ||||||||
Adjusted net income attributable to common stockholders | $ | 876,963 | $ | 1,034,043 | $ | 742,076 | |||||
Weighted average common shares—diluted | 138,066,686 | 137,461,637 | 134,593,177 | ||||||||
Earnings per common share—diluted | $ | 6.35 | $ | 7.52 | $ | 5.51 | |||||
Dividends per common share | $ | 5.68 | $ | 5.40 | $ | 5.00 |
12/31/2016 (as previously reported) | Impact of ASU 2016-09 | Impact of ASU 2016-18 | 12/31/2016 (as adjusted and currently reported) | ||||||||||||
Net cash provided by operating activities | 1,143,484 | 8,562 | 8,226 | 1,160,272 | |||||||||||
Net cash used in investing activities | (1,037,352 | ) | — | 5,000 | (1,032,352 | ) | |||||||||
Net cash used in financing activities | (291,645 | ) | (8,562 | ) | (3,064 | ) | (303,271 | ) | |||||||
Net decrease in cash, cash equivalents | (185,513 | ) | — | 185,513 | — | ||||||||||
Net decrease in cash, cash equivalents and restricted cash | — | — | (175,351 | ) | (175,351 | ) | |||||||||
Cash, cash equivalents, beginning of period | 400,507 | — | (400,507 | ) | — | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | — | — | 505,328 | 505,328 | |||||||||||
Cash, cash equivalents, end of period | $ | 214,994 | — | — | — | ||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | — | $ | 114,983 | $ | 329,977 |
12/31/2015 (as previously reported) | Impact of ASU 2016-09 | Impact of ASU 2016-18 | 12/31/2015 (as adjusted and currently reported) | ||||||||||||
Net cash provided by operating activities | 1,056,754 | 6,076 | 11,837 | 1,074,667 | |||||||||||
Net cash used in investing activities | (1,199,517 | ) | — | — | (1,199,517 | ) | |||||||||
Net cash provided by (used in) financing activities | 33,810 | (6,076 | ) | (2,641 | ) | 25,093 | |||||||||
Net decrease in cash, cash equivalents | (108,953 | ) | — | 108,953 | — | ||||||||||
Net decrease in cash, cash equivalents and restricted cash | — | — | (99,757 | ) | (99,757 | ) | |||||||||
Cash, cash equivalents, beginning of period | 509,460 | — | (509,460 | ) | — | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | — | — | 605,085 | 605,085 | |||||||||||
Cash, cash equivalents, end of period | $ | 400,507 | — | — | — | ||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | — | $ | 104,821 | $ | 505,328 |
12/31/17 | 12/31/16 | ||||||
Fixed rate unsecured notes (1) | $ | 5,350,000 | $ | 4,200,000 | |||
Variable rate unsecured notes (1) | 300,000 | — | |||||
Term Loans (1) | 250,000 | 300,000 | |||||
Fixed rate mortgage notes payable—conventional and tax-exempt (2) | 593,987 | 1,668,496 | |||||
Variable rate mortgage notes payable—conventional and tax-exempt (2) | 910,326 | 908,262 | |||||
Total mortgage notes payable and unsecured notes and Term Loans | 7,404,313 | 7,076,758 | |||||
Credit Facility | — | — | |||||
Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility | $ | 7,404,313 | $ | 7,076,758 |
(1) | Balances at December 31, 2017 and 2016 exclude $10,850 and $8,930, respectively, of debt discount, and $36,386 and $27,768, respectively, of deferred financing costs, as reflected in unsecured notes, net on the accompanying Consolidated Balance Sheets. |
(2) | Balances at December 31, 2017 and 2016 exclude $16,351 of debt discount and $1,866 of debt premium, respectively, and $11,256 and $11,046, respectively, of deferred financing costs, as reflected in mortgage notes payable, net on the accompanying Consolidated Balance Sheets. |
• | In February 2017, the Company repaid $17,300,000 of variable rate debt secured by Avalon Mountain View at par at its scheduled maturity date. |
• | In February 2017, the Company entered into a $250,000,000 variable rate unsecured term loan (the "$250 million Term Loan"), of which $100,000,000 matures in February 2022 with stated pricing of LIBOR plus 0.90%, and $150,000,000 matures in February 2024 with stated pricing of LIBOR plus 1.50%. In April 2017, the Company borrowed the $250,000,000 available under the $250 million Term Loan. |
• | In May 2017, the Company repaid $670,590,000 aggregate principal amount of 6.26% fixed rate secured notes secured by 11 communities, representing the majority of the Fannie Mae pool 2 secured indebtedness assumed as part of the Archstone Acquisition, which had a contractual maturity date of November 2017 but opened for prepayment at par on April 30, 2017. In conjunction with the repayment, the Company recognized a gain of $10,839,000, primarily composed of the write-off of unamortized premium. The Company refinanced the secured borrowings for three of these communities for an aggregate principal amount of $185,100,000, with a contractual fixed interest rate of 3.61% and maturity dates of June 2027. |
• | In May 2017, the Company issued $400,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of approximately $396,016,000. The notes mature in May 2027 and were issued at a 3.35% interest rate. |
• | In June 2017, the Company issued $300,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of approximately $297,372,000. The notes mature in July 2047 and were issued at a 4.15% interest rate. |
• | In June 2017, the Company repaid $556,313,000 aggregate principal amount of 5.86% fixed rate secured notes secured by 12 wholly-owned operating communities, representing the remaining debt in the Company's Freddie Mac cross-collateralized pool financing originated in 2009, in advance of their May 2019 maturity date. In conjunction with the repayment, the Company recognized a charge of $34,965,000, consisting of prepayment penalties of $33,515,000 and the non-cash write-off of deferred financing costs of $1,450,000. |
• | In October 2017, the Company refinanced the secured borrowing for Archstone Lexington for a principal balance of $21,700,000, with a variable interest rate of LIBOR plus 1.35% and maturity date of October 2020. |
• | In November 2017, the Company issued $300,000,000 principal amount of floating rate unsecured notes in a public offering under its existing shelf registration statement for net proceeds of approximately $298,800,000. The notes mature in January 2021 and were issued at three month LIBOR plus 0.43%. |
• | In November 2017, the Company issued $450,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of approximately $445,271,000. The notes mature in January 2028 and were issued at a 3.20% coupon. |
• | In November 2017, the Company repaid its $300,000,000 variable rate unsecured term loan (the "$300 million Term Loan") entered into in March 2014. In conjunction with the repayment, the Company recognized a charge of $1,367,000 for the non-cash write-off of deferred financing costs. |
Year | Secured notes payments | Secured notes maturities | Unsecured notes maturities | Stated interest rate of unsecured notes | ||||||||||
2018 | 7,258 | 76,663 | — | N/A | ||||||||||
2019 | 4,696 | 114,721 | — | N/A | ||||||||||
2020 | 3,624 | 140,429 | 250,000 | 6.100 | % | |||||||||
400,000 | 3.625 | % | ||||||||||||
2021 | 3,551 | 27,844 | 250,000 | 3.950 | % | |||||||||
300,000 | LIBOR + 0.43% | |||||||||||||
2022 | 3,795 | — | 450,000 | 2.950 | % | |||||||||
100,000 | LIBOR + .90% | |||||||||||||
2023 | 4,040 | — | 350,000 | 4.200 | % | |||||||||
250,000 | 2.850 | % | ||||||||||||
2024 | 4,310 | — | 300,000 | 3.500 | % | |||||||||
150,000 | LIBOR + 1.50% | |||||||||||||
2025 | 4,585 | 84,835 | 525,000 | 3.450 | % | |||||||||
300,000 | 3.500 | % | ||||||||||||
2026 | 4,894 | — | 475,000 | 2.950 | % | |||||||||
300,000 | 2.900 | % | ||||||||||||
2027 | 3,083 | 185,100 | 400,000 | 3.350 | % | |||||||||
Thereafter | 148,468 | 682,417 | 350,000 | 3.900 | % | |||||||||
300,000 | 4.150 | % | ||||||||||||
450,000 | 3.200 | % | ||||||||||||
$ | 192,304 | $ | 1,312,009 | $ | 5,900,000 |
i. | issued 42,123 shares of common stock in connection with stock options exercised; |
ii. | issued 3,058 common shares through the Company's dividend reinvestment plan; |
iii. | issued 201,824 common shares in connection with restricted stock grants and the conversion of performance awards to restricted shares; |
iv. | issued 568,424 shares under CEP IV as discussed below; |
v. | withheld 60,319 common shares to satisfy employees' tax withholding and other liabilities; |
vi. | issued 11,528 shares through the Employee Stock Purchase Plan; and |
vii. | canceled 3,388 shares of restricted stock upon forfeiture. |
• | AvalonBay Value Added Fund II, L.P. (“Fund II”)—In September 2008, the Company formed Fund II, a private, discretionary real estate investment vehicle which acquired and operates communities in the Company's markets. Fund II served as the exclusive vehicle through which the Company acquired investment interests in apartment communities, subject to certain exceptions, through the close of its investment period in August 2011. During 2017, Fund II sold its final three communities, and the Company expects to complete the dissolution of Fund II in 2018. Fund II has six institutional investors, including the Company. One of the Company's wholly owned subsidiaries is the general partner of Fund II and at December 31, 2017, and the Company has an equity investment of $2,576,000 (net of distributions), representing a 31.3% combined general partner and limited partner equity interest. |
• | Eaves Gaithersburg, located in Gaithersburg, MD, for $117,000,000, |
• | Briarwood Apartments, located in Owings Mills, MD, for $64,750,000, and |
• | Avalon Watchung, located in Watchung, NJ, for $90,300,000. |
• | Archstone Multifamily Partners AC LP (the “U.S. Fund”)—The U.S. Fund was formed in July 2011 and is fully invested. The U.S. Fund has a term that expires in July 2023, assuming the exercise of two, one-year extension options. The U.S. Fund has six institutional investors, including the Company. The Company is the general partner of the U.S. Fund and, at December 31, 2017 excluding costs incurred in excess of equity in the underlying net assets of the U.S. Fund, the Company has an equity investment of $39,896,000 (net of distributions), representing a 28.6% combined general partner and limited partner equity interest. The Company acquired its interest in the U.S. Fund as part of the Archstone Acquisition. |
• | Multifamily Partners AC JV LP (the “AC JV”)—The AC JV is a joint venture that was formed in 2011 and has four institutional investors, including the Company. Excluding costs incurred in excess of equity in the underlying net assets of the AC JV, at December 31, 2017 the Company has an equity investment of $49,492,000 (net of distributions), representing a 20.0% equity interest. The Company acquired its interest in the AC JV as part of the Archstone Acquisition. |
• | MVP I, LLC—In December 2004, the Company entered into a joint venture agreement with an unrelated third-party for the development of Avalon at Mission Bay II. Construction of Avalon at Mission Bay II, a 313 apartment-home community located in San Francisco, California, was completed in December 2006. The Company holds a 25.0% equity interest in the venture. The Company is responsible for the day-to-day operations of the community and is the management agent subject to the terms of a management agreement. The Company has not guaranteed the debt of MVP I, LLC, nor does the Company have any obligation to fund this debt should MVP I, LLC be unable to do so. |
• | Brandywine Apartments of Maryland, LLC (“Brandywine”)—Brandywine owns a 305 apartment home community located in Washington, D.C. The community is managed by a third party. Brandywine is comprised of five members who hold various interests in the joint venture. The Company holds a 28.7% equity interest in Brandywine. |
• | Residual JV—Through subsidiaries, the Company and Equity Residential entered into three limited liability company agreements (collectively, the “Residual JV”) through which the Company and Equity Residential acquired (i) certain assets of Archstone that the Company and Equity Residential have substantially divested (the “Residual Assets”), and (ii) various liabilities of Archstone that the Company and Equity Residential agreed to assume in conjunction with the Archstone Acquisition (the “Residual Liabilities”). The Residual Assets included a 20.0% interest in Lake Mendota Investments, LLC and Subsidiaries (“SWIB”), a joint venture which disposed the last of its communities in 2015, as well as various licenses, insurance policies, contracts, office leases and other miscellaneous assets. |
• | Legacy JV—As part of the Archstone Acquisition the Company entered into a limited liability company agreement with Equity Residential, through which it assumed obligations of Archstone in the form of preferred interests, some of which are governed by tax protection arrangements (the “Legacy JV”). The Company has a 40.0% interest in the Legacy JV. During the years ended December 31, 2017, 2016 and 2015, the Legacy JV redeemed certain of the preferred interests and paid accrued dividends, of which the Company's portion was $2,000,000, $1,960,000 and $14,410,000, respectively. At December 31, 2017, the remaining preferred interests had an aggregate liquidation value of $37,579,000, the Company's share of which is included in accrued expenses and other liabilities in the accompanying Consolidated Balance Sheets. |
• | Sudbury Development, LLC—During 2015, the Company entered into a joint venture agreement to purchase land and pursue entitlements and pre-development activity for a mixed-use development project in Sudbury, MA, including multifamily apartment homes, retail, senior housing and age-restricted housing. The Company has a 60.0% ownership interest in the venture. The venture is considered a VIE, though the Company is not considered to be the primary beneficiary because the Company and its third party partner share control of the joint venture as approval from both parties is required for all significant aspects of the venture's activities including, but not limited to, changes in the ownership or capital structure of the partnership, acquisitions or dispositions by the venture and decisions about the pre-development and related activities to be performed by the venture. During the year ended December 31, 2017, the Company and its venture partner each acquired their respective portion of the real estate held by the venture, with the Company's portion consisting of a parcel of land acquired for an investment of $19,200,000. The Company and its venture partner retained continuing involvement with the venture to fund the completion of the planned infrastructure and site work. At December 31, 2017, the Company has recorded an obligation of $4,340,000, representing the Company's share of costs for the venture to complete this work. |
• | North Point II JV, LP—During 2016, the Company entered into a joint venture to develop, own, and operate AVA North Point, an apartment community located in Cambridge, MA, which is currently under construction and expected to contain 265 apartment homes upon completion. The Company owns a 55.0% interest in the venture, and the venture partner owns the remaining 45.0% interest. The venture is considered to be a VIE, though the Company is not considered to be the primary beneficiary because the Company and its third party partner share control of the venture. The Company and its venture partner share decision making authority for all significant aspects of the venture's activities including, but not limited to, changes in the ownership or capital structure, the original capital budget and any changes to the budget to construct AVA North Point and the future operating budget for the community upon completion. AVA North Point is the third phase of a master planned development, the other phases of which are owned through the AC JV. During 2016, the Company provided the partners of the AC JV the opportunity to acquire the AVA North Point land parcel owned by the Company as required in the ROFO provisions for the AC JV. After certain partners of the AC JV declined to participate, the Company entered into the new joint venture and sold the land parcel to the venture in exchange for a cash payment and a capital account credit, and is overseeing the development in exchange for a developer fee. Upon sale of the land parcel, the Company recognized a gain of $10,621,000 during the year ended December 31, 2016, included in (loss) gain on other real estate transactions on the accompanying Consolidated Statements of Comprehensive Income. At December 31, 2017, excluding costs incurred in excess of equity in the underlying net assets of North Point II JV, LP, the Company has an equity investment of $36,370,000. |
12/31/17 | 12/31/16 | ||||||
Assets: | |||||||
Real estate, net | $ | 695,077 | $ | 954,493 | |||
Other assets | 39,976 | 49,519 | |||||
Total assets | $ | 735,053 | $ | 1,004,012 | |||
Liabilities and partners' capital: | |||||||
Mortgage notes payable, net and credit facility | $ | 523,815 | $ | 689,573 | |||
Other liabilities | 10,540 | 16,537 | |||||
Partners' capital | 200,698 | 297,902 | |||||
Total liabilities and partners' capital | $ | 735,053 | $ | 1,004,012 |
For the year ended | |||||||||||
12/31/17 | 12/31/16 | 12/31/15 | |||||||||
Rental and other income | $ | 101,615 | $ | 131,901 | $ | 173,578 | |||||
Operating and other expenses | (38,566 | ) | (50,945 | ) | (67,962 | ) | |||||
Gain on sale of communities | 136,333 | 196,749 | 98,899 | ||||||||
Interest expense, net (1) | (27,104 | ) | (45,886 | ) | (45,517 | ) | |||||
Depreciation expense | (25,914 | ) | (34,471 | ) | (45,324 | ) | |||||
Net income | $ | 146,364 | $ | 197,348 | $ | 113,674 |
(1) | Amounts for the years ended December 31, 2017, 2016 and 2015 includes charges for prepayment penalties and write-offs of deferred financing costs of $1,591, $12,659 and $4,481, respectively. |
For the year ended | |||||||||||
12/31/17 | 12/31/16 | 12/31/15 | |||||||||
Fund I (1) | $ | — | $ | 87 | $ | 871 | |||||
Fund II (2) | 53,961 | 49,882 | 32,211 | ||||||||
U.S. Fund (3) | 14,773 | 15,635 | 2,052 | ||||||||
AC JV | 1,388 | 1,445 | 511 | ||||||||
MVP I, LLC (4) | 1,833 | 1,627 | 22,453 | ||||||||
Brandywine | 106 | 10 | (1,474 | ) | |||||||
CVP I, LLC (5) | — | 9 | 1,812 | ||||||||
Residual JV | (1,223 | ) | (1,374 | ) | 11,582 | ||||||
Avalon Clarendon (6) | — | (2,359 | ) | — | |||||||
North Point II JV, LP | (122 | ) | — | — | |||||||
Sudbury Development, LLC | 28 | — | — | ||||||||
Total | $ | 70,744 | $ | 64,962 | $ | 70,018 |
(1) | The Company's equity in income for this entity represents its residual profits from the sale of the community, or liquidation of the venture. |
(2) | Equity in income for the years ended December 31, 2017, 2016 and 2015 includes the Company's proportionate share of the gain on the sale of Fund II assets of $26,322, $41,501, and $29,726 respectively. In addition, equity in income for the years ended December 31, 2017 and 2016 include $26,742 and $7,985, respectively, relating to the Company's recognition of its promoted interest. |
(3) | Equity in income for the years ended December 31, 2017 and 2016 include the Company's proportionate share of the gain on the sale of U.S. Fund assets of $13,788 and $16,568, respectively. |
(4) | Equity in income for the year ended December 31, 2015 includes $21,340 relating to the Company's recognition of its promoted interest, of which $20,680 was from the joint venture partner upon agreement to modify the joint venture agreement to eliminate the Company's promoted interest from associated distribution for future return calculations. |
(5) | Equity in income for the year ended December 31, 2015 includes $1,289 relating to the Company's recognition of its promoted interest. |
(6) | In 2016, the Company and its venture partner established separate legal ownership of Avalon Clarendon, after which the Company reported the operating results of Avalon Clarendon as part of its consolidated operations. |
• | The Lodge Denver West, located in Lakewood, CO, contains 252 apartment homes and was acquired for a purchase price of $76,750,000. |
• | Avalon Dunn Loring, located in Vienna, VA, contains 440 apartment homes and 27,000 square feet of retail space and was acquired for a purchase price of $151,000,000. |
• | 850 Boca, located in Boca Raton, FL, contains 370 apartment homes and was acquired for a purchase price of $138,000,000. |
Community Name | Location | Period of sale | Apartment homes | Debt | Gross sales price | Net cash proceeds | |||||||||||||
Avalon Pines (1) | Coram, NY | Q117 | 450 | $ | — | $ | 140,000 | $ | 138,689 | ||||||||||
AVA University District | Seattle, WA | Q217 | 283 | — | 112,500 | 108,511 | |||||||||||||
Avalon Danbury | Danbury, CT | Q317 | 234 | — | 52,000 | 51,000 | |||||||||||||
Avalon Run East | Lawrenceville, NJ | Q417 | 312 | — | 87,500 | 85,033 | |||||||||||||
Avalon Huntington | Shelton, CT | Q417 | 99 | — | 33,000 | 32,173 | |||||||||||||
Avalon Milford | Milford, CT | Q417 | 246 | — | 50,500 | 49,161 | |||||||||||||
Other real estate dispositions (2) | multiple | Q1-Q417 | N/A | — | 39,154 | 38,472 | |||||||||||||
Total of 2017 asset sales | 1,624 | $ | — | $ | 514,654 | $ | 503,039 | ||||||||||||
Total of 2016 asset sales | 2,051 | $ | — | $ | 564,028 | $ | 532,717 | ||||||||||||
Total of 2015 asset sales | 851 | $ | — | $ | 289,320 | $ | 282,163 |
(1) | Includes the sale of the adjacent golf course. |
(2) | Primarily composed of the sale of two undeveloped land parcels, located in Newcastle, WA, that are adjacent to a completed Development Community, 421-a tax certificates representing the right to qualify for certain property tax exemptions in New York City and one undeveloped land parcel, located in Vienna, VA. |
Payments due by period | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | ||||||||||||||||||
Operating Lease Obligations | $ | 21,051 | $ | 21,064 | $ | 18,781 | $ | 20,162 | $ | 20,057 | $ | 1,052,808 | |||||||||||
Capital Lease Obligations (1) (2) | 1,073 | 1,075 | 1,077 | 1,080 | 1,082 | 43,976 | |||||||||||||||||
$ | 22,124 | $ | 22,139 | $ | 19,858 | $ | 21,242 | $ | 21,139 | $ | 1,096,784 |
(1) | Aggregate capital lease payments include $25,961 in interest costs, with the timing of certain lease payments for capital land leases determined by completion of the construction of the associated apartment community. |
(2) | Capital lease assets of $19,737 and $39,015 as of December 31, 2017 and 2016, respectively, are included as a component of land and improvements or building and improvements on the accompanying Consolidated Balance Sheets. |
• | Established Communities (also known as Same Store Communities) are 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 occupancy as of the beginning of the prior year. The Established Communities for the year ended December 31, 2017, are communities that are consolidated for financial reporting purposes, had stabilized occupancy as of January 1, 2016, are not conducting or planning to conduct substantial redevelopment activities and are not held for sale or planned for disposition within the current year. A community is considered to have stabilized occupancy at the earlier of (i) attainment of 95% physical occupancy or (ii) the one-year anniversary of completion of development or redevelopment. |
• | Other Stabilized Communities includes all other consolidated completed communities that have stabilized occupancy, as defined above. Other Stabilized Communities do not include communities that are conducting or planning to conduct substantial redevelopment activities within the current year. |
• | Development/Redevelopment Communities consists of consolidated communities that are under construction and have not received a certificate of occupancy for the entire community, and where substantial redevelopment is in progress or is planned to begin during the current year and communities under lease-up that had not reached stabilized occupancy, as defined above, as of January 1, 2017. |
For the year ended | |||||||||||
12/31/17 | 12/31/16 | 12/31/15 | |||||||||
Net income | $ | 876,660 | $ | 1,033,708 | $ | 741,733 | |||||
Indirect operating expenses, net of corporate income | 65,398 | 61,403 | 56,973 | ||||||||
Investments and investment management expense | 5,936 | 4,822 | 4,370 | ||||||||
Expensed acquisition, development and other pursuit costs, net of recoveries | 2,736 | 9,922 | 6,822 | ||||||||
Interest expense, net | 199,661 | 187,510 | 175,615 | ||||||||
Loss (gain) on extinguishment of debt, net | 25,472 | 7,075 | (26,736 | ) | |||||||
General and administrative expense | 50,673 | 45,771 | 42,774 | ||||||||
Equity in income of unconsolidated real estate entities | (70,744 | ) | (64,962 | ) | (70,018 | ) | |||||
Depreciation expense | 584,150 | 531,434 | 477,923 | ||||||||
Income tax expense | 141 | 305 | 1,483 | ||||||||
Casualty and impairment loss (gain), net | 6,250 | (3,935 | ) | (10,542 | ) | ||||||
Gain on sale of communities | (252,599 | ) | (374,623 | ) | (115,625 | ) | |||||
Loss (gain) on other real estate transactions | 10,907 | (10,224 | ) | (9,647 | ) | ||||||
Net operating income from real estate assets sold or held for sale | (14,573 | ) | (44,263 | ) | (59,383 | ) | |||||
Net operating income | $ | 1,490,068 | $ | 1,383,943 | $ | 1,215,742 |
For the year ended | |||||||||||
12/31/2017 | 12/31/2016 | 12/31/2015 | |||||||||
Rental income from real estate assets sold or held for sale | $ | 23,457 | $ | 70,273 | $ | 96,297 | |||||
Operating expenses from real estate assets sold or held for sale | (8,884 | ) | (26,010 | ) | (36,914 | ) | |||||
Net operating income from real estate assets sold or held for sale | $ | 14,573 | $ | 44,263 | $ | 59,383 |
Total revenue | NOI | % NOI change from prior year | Gross real estate (1) | |||||||||||
For the year ended December 31, 2017 | ||||||||||||||
Established | ||||||||||||||
New England | $ | 233,091 | $ | 150,253 | 2.1 | % | $ | 1,852,676 | ||||||
Metro NY/NJ | 362,273 | 247,720 | 2.1 | % | 3,069,690 | |||||||||
Mid-Atlantic | 221,064 | 153,750 | 1.5 | % | 2,056,066 | |||||||||
Pacific Northwest | 84,189 | 61,527 | 6.3 | % | 738,532 | |||||||||
Northern California | 336,767 | 257,673 | 1.6 | % | 2,830,963 | |||||||||
Southern California | 337,876 | 241,549 | 3.9 | % | 3,017,836 | |||||||||
Total Established (2) | 1,575,260 | 1,112,472 | 2.5 | % | 13,565,763 | |||||||||
Other Stabilized | 278,868 | 196,733 | N/A | 3,189,393 | ||||||||||
Development / Redevelopment (3) | 276,896 | 180,863 | N/A | 5,015,094 | ||||||||||
Land Held for Future Development | N/A | N/A | N/A | 68,364 | ||||||||||
Non-allocated (4) | 4,147 | N/A | N/A | 97,322 | ||||||||||
Total | $ | 2,135,171 | $ | 1,490,068 | 7.7 | % | $ | 21,935,936 | ||||||
For the year ended December 31, 2016 | ||||||||||||||
Established | ||||||||||||||
New England | $ | 226,727 | $ | 145,671 | 4.8 | % | $ | 1,888,524 | ||||||
Metro NY/NJ | 359,373 | 245,654 | 1.2 | % | 3,212,220 | |||||||||
Mid-Atlantic | 233,711 | 162,243 | 1.3 | % | 2,339,395 | |||||||||
Pacific Northwest | 72,475 | 52,434 | 7.4 | % | 737,289 | |||||||||
Northern California | 319,121 | 244,458 | 7.0 | % | 2,661,258 | |||||||||
Southern California | 291,567 | 207,537 | 9.1 | % | 2,672,691 | |||||||||
Total Established (2) | 1,502,974 | 1,057,997 | 4.8 | % | 13,511,377 | |||||||||
Other Stabilized (5) | 232,977 | 165,130 | N/A | 2,330,503 | ||||||||||
Development / Redevelopment | 233,432 | 160,816 | N/A | 4,755,315 | ||||||||||
Land Held for Future Development | N/A | N/A | N/A | 84,293 | ||||||||||
Non-allocated (4) | 5,599 | N/A | N/A | 74,292 | ||||||||||
Total | $ | 1,974,982 | $ | 1,383,943 | 13.8 | % | $ | 20,755,780 | ||||||
For the year ended December 31, 2015 | ||||||||||||||
Established | ||||||||||||||
New England | $ | 170,287 | $ | 107,189 | 3.0 | % | $ | 1,460,746 | ||||||
Metro NY/NJ | 342,768 | 244,280 | 3.6 | % | 3,152,361 | |||||||||
Mid-Atlantic | 209,012 | 145,497 | 0.2 | % | 2,177,823 | |||||||||
Pacific Northwest | 67,900 | 48,833 | 8.5 | % | 721,040 | |||||||||
Northern California | 273,432 | 210,226 | 11.9 | % | 2,414,184 | |||||||||
Southern California | 252,530 | 173,919 | 9.4 | % | 2,465,432 | |||||||||
Total Established (2) | 1,315,929 | 929,944 | 6.0 | % | 12,391,586 | |||||||||
Other Stabilized | 211,633 | 140,167 | N/A | 2,040,269 | ||||||||||
Development / Redevelopment | 222,222 | 145,631 | N/A | 4,238,967 | ||||||||||
Land Held for Future Development | N/A | N/A | N/A | 484,377 | ||||||||||
Non-allocated (4) | 9,947 | N/A | N/A | 73,372 | ||||||||||
Total | $ | 1,759,731 | $ | 1,215,742 | 13.0 | % | $ | 19,228,571 |
(1) | Does not include gross real estate assets held for sale of $20,846 and $39,528 as of December 31, 2016 and 2015, respectively. |
(2) | Gross real estate for the Company's Established Communities includes capitalized additions of approximately $78,241, $85,676 and $74,982 in 2017, 2016 and 2015, respectively. |
(3) | Total revenue and NOI for the year ended December 31, 2017 includes $3,495 in business interruption insurance proceeds related to the Maplewood casualty loss. |
(4) | Revenue represents third-party management, accounting, and developer fees and miscellaneous income which are not allocated to a reportable segment. |
(5) | Total revenue and NOI for the year ended December 31, 2016 includes $20,306 in business interruption insurance proceeds related to the Edgewater casualty loss. |
2009 Plan shares | Weighted average exercise price per share | 1994 Plan shares | Weighted average exercise price per share | ||||||||||
Options Outstanding, December 31, 2014 | 340,062 | $ | 122.67 | 272,402 | $ | 104.96 | |||||||
Exercised | (90,884 | ) | 124.01 | (190,207 | ) | 105.70 | |||||||
Granted | — | — | — | — | |||||||||
Forfeited | — | — | — | — | |||||||||
Options Outstanding, December 31, 2015 | 249,178 | $ | 122.17 | 82,195 | $ | 103.27 | |||||||
Exercised | (71,845 | ) | 117.04 | (59,654 | ) | 112.85 | |||||||
Granted | — | — | — | — | |||||||||
Forfeited | — | — | — | — | |||||||||
Options Outstanding, December 31, 2016 | 177,333 | $ | 124.25 | 22,541 | $ | 77.91 | |||||||
Exercised | (27,360 | ) | 110.47 | (14,763 | ) | 93.35 | |||||||
Granted | — | — | — | — | |||||||||
Forfeited | — | — | — | — | |||||||||
Options Outstanding, December 31, 2017 (1) | 149,973 | $ | 126.77 | 7,778 | $ | 48.60 | |||||||
Options Exercisable: | |||||||||||||
December 31, 2015 | 188,081 | $ | 119.98 | 82,195 | $ | 103.27 | |||||||
December 31, 2016 | 177,333 | $ | 124.25 | 22,541 | $ | 77.91 | |||||||
December 31, 2017 | 149,973 | $ | 126.77 | 7,778 | $ | 48.60 |
(1) | All options outstanding are exercisable as of December 31, 2017. |
2009 Plan Number of Options | Range—Exercise Price | Weighted Average Remaining Contractual Term (in years) | |||||
5,158 | $70.00 | - | $79.99 | 2.1 | |||
15,762 | $110.00 | - | $119.99 | 3.1 | |||
29,862 | $120.00 | - | $129.99 | 5.2 | |||
99,191 | $130.00 | - | $139.99 | 4.6 | |||
149,973 |
1994 Plan Number of Options | Range—Exercise Price | Weighted Average Remaining Contractual Term (in years) | |||||
7,778 | $40.00 | - | $49.99 | 1.1 |
Performance awards | Weighted average grant date fair value per award | ||||||
Outstanding at December 31, 2014 | 239,902 | $ | 95.20 | ||||
Granted (1) | 85,636 | 148.49 | |||||
Change in awards based on performance (2) | 14,697 | 78.50 | |||||
Converted to restricted stock | (95,826 | ) | 78.50 | ||||
Forfeited | (6,143 | ) | 110.34 | ||||
Outstanding at December 31, 2015 | 238,266 | $ | 119.65 | ||||
Granted (3) | 94,054 | 141.92 | |||||
Change in awards based on performance (2) | 36,091 | 101.52 | |||||
Converted to restricted stock | (115,618 | ) | 94.67 | ||||
Forfeited | (1,630 | ) | 141.98 | ||||
Outstanding at December 31, 2016 | 251,163 | $ | 136.74 | ||||
Granted (4) | 81,708 | 176.59 | |||||
Change in awards based on performance (2) | 49,323 | 119.26 | |||||
Converted to restricted stock | (128,482 | ) | 118.75 | ||||
Forfeited | (1,942 | ) | 159.39 | ||||
Outstanding at December 31, 2017 | 251,770 | $ | 155.25 |
(1) | The amount of restricted stock that ultimately may be earned is based on the total shareholder return metrics related to the Company’s common stock for 55,162 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 30,474 performance awards. |
(2) | Represents the change in the number of performance awards earned based on performance achievement for the performance period. |
(3) | The amount of restricted stock that ultimately may be earned is based on the total shareholder return metrics related to the Company’s common stock for 61,039 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 33,015 performance awards. |
(4) | The amount of restricted stock that ultimately may be earned is based on the total shareholder return metrics related to the Company’s common stock for 49,374 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 32,334 performance awards. |
2017 | 2016 | 2015 | ||||
Dividend yield | 3.2% | 3.3% | 3.0% | |||
Estimated volatility over the life of the plan (1) | 15.3% - 19.7% | 15.2% - 22.8% | 12.0% - 17.3% | |||
Risk free rate | 0.69% - 1.61% | 0.44% - 0.88% | 0.07% - 1.09% | |||
Estimated performance award value based on total shareholder return measure | $175.86 | $131.24 | $139.18 |
(1) | Estimated volatility of the life of the plan is using 50% historical volatility and 50% implied volatility. |
Restricted stock shares | Restricted stock shares weighted average grant date fair value per share | Restricted stock shares converted from performance awards | ||||||||
Outstanding at December 31, 2014 | 179,307 | $ | 129.06 | 10,933 | ||||||
Granted - restricted stock shares | 61,953 | 173.04 | 95,826 | |||||||
Vested - restricted stock shares | (91,847 | ) | 130.75 | (8,412 | ) | |||||
Forfeited | (1,529 | ) | 151.86 | — | ||||||
Outstanding at December 31, 2015 | 147,884 | $ | 146.21 | 98,347 | ||||||
Granted - restricted stock shares | 81,400 | 162.38 | 115,618 | |||||||
Vested - restricted stock shares | (88,712 | ) | 141.38 | (36,872 | ) | |||||
Forfeited | (3,867 | ) | 162.43 | (395 | ) | |||||
Outstanding at December 31, 2016 | 136,705 | $ | 158.51 | 176,698 | ||||||
Granted - restricted stock shares | 73,342 | 179.58 | 128,482 | |||||||
Vested - restricted stock shares | (73,683 | ) | 153.86 | (70,595 | ) | |||||
Forfeited | (2,731 | ) | 173.42 | (657 | ) | |||||
Outstanding at December 31, 2017 | 133,633 | $ | 172.33 | 233,928 |
Non-designated Hedges Interest Rate Caps | Cash Flow Hedges Interest Rate Caps | Cash Flow Hedges Interest Rate Swaps | ||||||||||
Notional balance | $ | 689,059 | $ | 35,039 | $ | 300,000 | ||||||
Weighted average interest rate (1) | 3.3 | % | 3.5 | % | N/A | |||||||
Weighted average swapped/capped interest rate | 6.5 | % | 5.9 | % | 2.4 | % | ||||||
Earliest maturity date | August 2018 | April 2019 | May 2018 | |||||||||
Latest maturity date | September 2022 | April 2019 | May 2018 |
(1) | For interest rate caps, represents the weighted average interest rate on the hedged debt. |
• | in conjunction with the refinancing of three secured borrowings in May 2017, in April 2017, the Company settled $185,100,000 of forward interest rate swap agreements designated as cash flow hedges of the interest rate variability of the secured notes, making a payment of $2,326,000; |
• | in conjunction with the Company's May 2017 unsecured note issuance, the Company settled $400,000,000 of forward interest rate swap agreements designated as cash flow hedges of the interest rate variability on the forecasted issuance of the unsecured notes, making a payment of $1,361,000; and |
• | in conjunction with the Company's June 2017 unsecured note issuance, the Company settled $214,900,000 of forward interest rate swap agreements designated as cash flow hedges of the interest rate variability on the forecasted issuance of the unsecured notes, receiving a payment of $4,078,000. |
For the year ended | |||||||||||
12/31/17 | 12/31/16 | 12/31/15 | |||||||||
Cash flow hedge losses reclassified to earnings | $ | 7,070 | $ | 6,433 | $ | 5,774 |
Description | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
12/31/2017 | |||||||||||||||
Non Designated Hedges | |||||||||||||||
Interest Rate Caps | $ | 2 | $ | — | $ | 2 | $ | — | |||||||
Cash Flow Hedges | |||||||||||||||
Interest Rate Swaps - Assets | 2,270 | — | 2,270 | — | |||||||||||
Interest Rate Swaps - Liabilities | (1,171 | ) | — | (1,171 | ) | — | |||||||||
Puts | (3,245 | ) | — | — | (3,245 | ) | |||||||||
DownREIT units | (1,338 | ) | (1,338 | ) | — | — | |||||||||
Indebtedness | |||||||||||||||
Unsecured notes | (5,446,604 | ) | (5,446,604 | ) | — | — | |||||||||
Secured notes payable and unsecured term loans | (1,849,851 | ) | — | (1,849,851 | ) | — | |||||||||
Total | $ | (7,299,937 | ) | $ | (5,447,942 | ) | $ | (1,848,750 | ) | $ | (3,245 | ) | |||
12/31/2016 | |||||||||||||||
Non Designated Hedges | |||||||||||||||
Interest Rate Caps | $ | 79 | $ | — | $ | 79 | $ | — | |||||||
Cash Flow Hedges | |||||||||||||||
Interest Rate Caps | 2 | — | 2 | — | |||||||||||
Interest Rate Swaps | 14,775 | — | 14,775 | — | |||||||||||
Puts | (6,002 | ) | — | — | (6,002 | ) | |||||||||
DownREIT units | (1,329 | ) | (1,329 | ) | — | — | |||||||||
Indebtedness | |||||||||||||||
Unsecured notes | (4,218,627 | ) | (4,218,627 | ) | — | — | |||||||||
Secured notes payable and unsecured term loans | (2,744,462 | ) | — | (2,744,462 | ) | — | |||||||||
Total | $ | (6,955,564 | ) | $ | (4,219,956 | ) | $ | (2,729,606 | ) | $ | (6,002 | ) |
For the three months ended (1) | |||||||||||||||
3/31/17 | 6/30/17 | 9/30/17 | 12/31/17 | ||||||||||||
Total revenue | $ | 522,326 | $ | 530,512 | $ | 550,500 | $ | 555,292 | |||||||
Net income | $ | 235,781 | $ | 165,194 | $ | 238,199 | $ | 237,486 | |||||||
Net income attributable to common stockholders | $ | 235,875 | $ | 165,225 | $ | 238,248 | $ | 237,573 | |||||||
Net income per common share - basic | $ | 1.72 | $ | 1.20 | $ | 1.73 | $ | 1.72 | |||||||
Net income per common share - diluted | $ | 1.72 | $ | 1.20 | $ | 1.72 | $ | 1.72 |
For the three months ended (1) | |||||||||||||||
3/31/16 | 6/30/16 | 9/30/16 | 12/31/16 | ||||||||||||
Total revenue | $ | 508,498 | $ | 502,307 | $ | 516,211 | $ | 518,240 | |||||||
Net income | $ | 237,877 | $ | 197,319 | $ | 356,329 | $ | 242,183 | |||||||
Net income attributable to common stockholders | $ | 237,931 | $ | 197,444 | $ | 356,392 | $ | 242,235 | |||||||
Net income per common share - basic | $ | 1.73 | $ | 1.44 | $ | 2.60 | $ | 1.76 | |||||||
Net income per common share - diluted | $ | 1.73 | $ | 1.44 | $ | 2.59 | $ | 1.76 |
(1) | Amounts may not equal full year results due to rounding. |
2017 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Total Cost | ||||||||||||||||||||||||||||||||||||||||||||||
Community | City and state | # of homes | Land and improvements | Building / Construction in Progress & Improvements | Costs Subsequent to Acquisition / Construction | Land and improvements | Building / Construction in Progress & Improvements | Total | Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Encumbrances | Year of Completion/ Acquisition | ||||||||||||||||||||||||||||||||||
ESTABLISHED COMMUNITIES | |||||||||||||||||||||||||||||||||||||||||||||||
NEW ENGLAND | |||||||||||||||||||||||||||||||||||||||||||||||
Boston, MA | |||||||||||||||||||||||||||||||||||||||||||||||
Avalon at Lexington | Lexington, MA | 198 | $ | 2,124 | $ | 12,567 | $ | 10,093 | $ | 2,124 | $ | 22,660 | $ | 24,784 | $ | 14,080 | $ | 10,704 | $ | 11,290 | $ | — | 1994 | ||||||||||||||||||||||||
Avalon Oaks | Wilmington, MA | 204 | 2,129 | 17,567 | 5,488 | 2,129 | 23,055 | 25,184 | 13,755 | 11,429 | 12,153 | — | 1999 | ||||||||||||||||||||||||||||||||||
Eaves Quincy | Quincy, MA | 245 | 1,743 | 14,662 | 10,184 | 1,743 | 24,846 | 26,589 | 14,456 | 12,133 | 12,799 | — | 1986/1995 | ||||||||||||||||||||||||||||||||||
Avalon Oaks West | Wilmington, MA | 120 | 3,318 | 13,465 | 1,224 | 3,318 | 14,689 | 18,007 | 8,054 | 9,953 | 10,442 | 15,213 | 2002 | ||||||||||||||||||||||||||||||||||
Avalon Orchards | Marlborough, MA | 156 | 2,983 | 17,970 | 2,702 | 2,983 | 20,672 | 23,655 | 11,463 | 12,192 | 12,865 | 15,579 | 2002 | ||||||||||||||||||||||||||||||||||
Avalon at Newton Highlands | Newton, MA | 294 | 11,039 | 45,547 | 5,196 | 11,039 | 50,743 | 61,782 | 25,369 | 36,413 | 37,670 | — | 2003 | ||||||||||||||||||||||||||||||||||
Avalon at The Pinehills | Plymouth, MA | 192 | 6,876 | 30,401 | 721 | 6,876 | 31,122 | 37,998 | 11,155 | 26,843 | 27,716 | — | 2004 | ||||||||||||||||||||||||||||||||||
Eaves Peabody | Peabody, MA | 286 | 4,645 | 18,919 | 13,420 | 4,645 | 32,339 | 36,984 | 13,190 | 23,794 | 24,329 | — | 1962/2004 | ||||||||||||||||||||||||||||||||||
Avalon at Bedford Center | Bedford, MA | 139 | 4,258 | 20,551 | 1,457 | 4,258 | 22,008 | 26,266 | 8,923 | 17,343 | 17,570 | — | 2006 | ||||||||||||||||||||||||||||||||||
Avalon at Lexington Hills | Lexington, MA | 387 | 8,691 | 79,121 | 4,158 | 8,691 | 83,279 | 91,970 | 28,415 | 63,555 | 66,241 | — | 2008 | ||||||||||||||||||||||||||||||||||
Avalon Acton | Acton, MA | 380 | 13,124 | 48,695 | 3,504 | 13,124 | 52,199 | 65,323 | 17,459 | 47,864 | 49,275 | 45,000 | 2008 | ||||||||||||||||||||||||||||||||||
Avalon at the Hingham Shipyard | Hingham, MA | 235 | 12,218 | 41,656 | 2,412 | 12,218 | 44,068 | 56,286 | 13,882 | 42,404 | 43,641 | — | 2009 | ||||||||||||||||||||||||||||||||||
Avalon Sharon | Sharon, MA | 156 | 4,719 | 25,478 | 892 | 4,719 | 26,370 | 31,089 | 8,759 | 22,330 | 22,960 | — | 2008 | ||||||||||||||||||||||||||||||||||
Avalon Northborough | Northborough, MA | 382 | 8,144 | 52,184 | 1,691 | 8,144 | 53,875 | 62,019 | 14,899 | 47,120 | 48,460 | — | 2009 | ||||||||||||||||||||||||||||||||||
Avalon Blue Hills | Randolph, MA | 276 | 11,110 | 34,580 | 1,549 | 11,110 | 36,129 | 47,239 | 10,781 | 36,458 | 37,314 | — | 2009 | ||||||||||||||||||||||||||||||||||
Avalon Cohasset | Cohasset, MA | 220 | 8,802 | 46,166 | 259 | 8,802 | 46,425 | 55,227 | 9,890 | 45,337 | 46,935 | — | 2012 | ||||||||||||||||||||||||||||||||||
Avalon Andover | Andover, MA | 115 | 4,276 | 21,871 | 210 | 4,276 | 22,081 | 26,357 | 4,527 | 21,830 | 22,625 | 13,498 | 2012 | ||||||||||||||||||||||||||||||||||
Avalon Exeter (1) | Boston, MA | 187 | 16,313 | 110,028 | 214 | 16,313 | 110,242 | 126,555 | 13,672 | 112,883 | 116,744 | — | 2014 | ||||||||||||||||||||||||||||||||||
Avalon Natick | Natick, MA | 407 | 15,645 | 64,845 | 34 | 15,645 | 64,879 | 80,524 | 10,430 | 70,094 | 72,419 | 48,870 | 2013 | ||||||||||||||||||||||||||||||||||
Avalon at Assembly Row | Somerville, MA | 195 | 8,599 | 52,494 | 26 | 8,599 | 52,520 | 61,119 | 6,780 | 54,339 | 56,030 | — | 2015 | ||||||||||||||||||||||||||||||||||
AVA Somerville | Somerville, MA | 250 | 10,945 | 56,470 | 12 | 10,945 | 56,482 | 67,427 | 6,208 | 61,219 | 63,066 | — | 2015 | ||||||||||||||||||||||||||||||||||
Avalon Prudential Center I (2) | Boston, MA | 243 | 8,002 | 32,370 | 38,384 | 8,002 | 70,754 | 78,756 | 28,947 | 49,809 | 47,586 | — | 1968/1998 | ||||||||||||||||||||||||||||||||||
Eaves Burlington | Burlington, MA | 203 | 7,714 | 32,499 | 6,512 | 7,714 | 39,011 | 46,725 | 6,538 | 40,187 | 41,107 | — | 1988/2012 | ||||||||||||||||||||||||||||||||||
Avalon Canton at Blue Hills | Canton, MA | 196 | 6,562 | 33,956 | 132 | 6,562 | 34,088 | 40,650 | 4,503 | 36,147 | 37,391 | — | 2014 | ||||||||||||||||||||||||||||||||||
Avalon Burlington (2) | Burlington, MA | 312 | 15,600 | 58,499 | 18,176 | 15,600 | 76,675 | 92,275 | 13,196 | 79,079 | 81,135 | — | 1989/2013 | ||||||||||||||||||||||||||||||||||
Eaves North Quincy | Quincy, MA | 224 | 11,940 | 39,400 | 3,544 | 11,940 | 42,944 | 54,884 | 9,297 | 45,587 | 46,492 | — | 1977/2013 | ||||||||||||||||||||||||||||||||||
Avalon at Center Place (1) | Providence, RI | 225 | — | 26,816 | 13,271 | — | 40,087 | 40,087 | 24,342 | 15,745 | 15,575 | — | 1991/1997 | ||||||||||||||||||||||||||||||||||
Total Boston, MA | 6,427 | $ | 211,519 | $ | 1,048,777 | $ | 145,465 | $ | 211,519 | $ | 1,194,242 | $ | 1,405,761 | $ | 352,970 | $ | 1,052,791 | $ | 1,081,830 | $ | 138,160 | ||||||||||||||||||||||||||
2017 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Total Cost | ||||||||||||||||||||||||||||||||||||||||||||||
Community | City and state | # of homes | Land and improvements | Building / Construction in Progress & Improvements | Costs Subsequent to Acquisition / Construction | Land and improvements | Building / Construction in Progress & Improvements | Total | Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Encumbrances | Year of Completion/ Acquisition | ||||||||||||||||||||||||||||||||||
Fairfield-New Haven, CT | |||||||||||||||||||||||||||||||||||||||||||||||
Eaves Stamford | Stamford, CT | 238 | $ | 5,956 | $ | 23,993 | $ | 13,117 | $ | 5,956 | $ | 37,110 | $ | 43,066 | $ | 24,215 | $ | 18,851 | $ | 20,058 | $ | — | 1991 | ||||||||||||||||||||||||
Avalon Wilton on River Rd | Wilton, CT | 102 | 2,116 | 14,664 | 6,422 | 2,116 | 21,086 | 23,202 | 12,077 | 11,125 | 11,314 | — | 1997 | ||||||||||||||||||||||||||||||||||
Avalon New Canaan | New Canaan, CT | 104 | 4,834 | 22,990 | 2,163 | 4,834 | 25,153 | 29,987 | 13,192 | 16,795 | 17,589 | — | 2002 | ||||||||||||||||||||||||||||||||||
AVA Stamford | Stamford, CT | 306 | 13,819 | 56,499 | 5,887 | 13,819 | 62,386 | 76,205 | 32,700 | 43,505 | 45,461 | — | 2002/2002 | ||||||||||||||||||||||||||||||||||
Avalon Darien | Darien, CT | 189 | 6,926 | 34,558 | 2,734 | 6,926 | 37,292 | 44,218 | 18,089 | 26,129 | 27,188 | — | 2004 | ||||||||||||||||||||||||||||||||||
Avalon Norwalk | Norwalk, CT | 311 | 11,320 | 62,904 | 887 | 11,320 | 63,791 | 75,111 | 16,187 | 58,924 | 60,986 | — | 2011 | ||||||||||||||||||||||||||||||||||
Avalon Wilton on Danbury Rd | Wilton, CT | 100 | 6,604 | 23,758 | 150 | 6,604 | 23,908 | 30,512 | 5,573 | 24,939 | 25,681 | — | 2011 | ||||||||||||||||||||||||||||||||||
Avalon Shelton | Shelton, CT | 250 | 7,749 | 40,264 | 88 | 7,749 | 40,352 | 48,101 | 6,697 | 41,404 | 42,826 | — | 2013 | ||||||||||||||||||||||||||||||||||
Avalon East Norwalk | Norwalk, CT | 240 | 10,395 | 36,245 | 119 | 10,395 | 36,364 | 46,759 | 5,670 | 41,089 | 42,317 | — | 2013 | ||||||||||||||||||||||||||||||||||
Avalon Stratford | Stratford, CT | 130 | 2,564 | 27,157 | 33 | 2,564 | 27,190 | 29,754 | 3,274 | 26,480 | 27,424 | — | 2014 | ||||||||||||||||||||||||||||||||||
Total Fairfield-New Haven, CT | 1,970 | $ | 72,283 | $ | 343,032 | $ | 31,600 | $ | 72,283 | $ | 374,632 | $ | 446,915 | $ | 137,674 | $ | 309,241 | $ | 320,844 | $ | — | ||||||||||||||||||||||||||
TOTAL NEW ENGLAND | 8,397 | $ | 283,802 | $ | 1,391,809 | $ | 177,065 | $ | 283,802 | $ | 1,568,874 | $ | 1,852,676 | $ | 490,644 | $ | 1,362,032 | $ | 1,402,674 | $ | 138,160 |
METRO NY/NJ | |||||||||||||||||||||||||||||||||||||||||||||||
New York City, NY | |||||||||||||||||||||||||||||||||||||||||||||||
Avalon Riverview (1) | Long Island City, NY | 372 | $ | — | $ | 94,061 | $ | 9,867 | $ | — | $ | 103,928 | $ | 103,928 | $ | 52,510 | $ | 51,418 | $ | 54,912 | $ | — | 2002 | ||||||||||||||||||||||||
Avalon Bowery Place I | New York, NY | 206 | 18,575 | 75,009 | 2,890 | 18,575 | 77,899 | 96,474 | 30,174 | 66,300 | 68,882 | 93,800 | 2006 | ||||||||||||||||||||||||||||||||||
Avalon Bowery Place II | New York, NY | 90 | 9,106 | 47,199 | 3,811 | 9,106 | 51,010 | 60,116 | 17,750 | 42,366 | 44,607 | — | 2007 | ||||||||||||||||||||||||||||||||||
Avalon Morningside Park (3) | New York, NY | 295 | 95,465 | 114,233 | 1,580 | 95,465 | 115,813 | 211,278 | 36,625 | 174,653 | 83,027 | 100,000 | 2009 | ||||||||||||||||||||||||||||||||||
Avalon Fort Greene | Brooklyn, NY | 631 | 83,038 | 216,802 | 2,052 | 83,038 | 218,854 | 301,892 | 57,941 | 243,951 | 251,213 | — | 2010 | ||||||||||||||||||||||||||||||||||
Avalon West Chelsea (1) (4) | New York, NY | 305 | — | 119,882 | 243 | — | 120,125 | 120,125 | 13,643 | 106,482 | 102,820 | — | 2015 | ||||||||||||||||||||||||||||||||||
AVA High Line (1) (4) | New York, NY | 405 | — | 159,187 | 33 | — | 159,220 | 159,220 | 20,451 | 138,769 | 152,127 | — | 2015 | ||||||||||||||||||||||||||||||||||
Avalon Clinton North (2) | New York, NY | 339 | 84,069 | 105,821 | 11,529 | 84,069 | 117,350 | 201,419 | 23,412 | 178,007 | 180,740 | 147,000 | 2008/2013 | ||||||||||||||||||||||||||||||||||
Avalon Clinton South | New York, NY | 288 | 71,421 | 89,851 | 6,181 | 71,421 | 96,032 | 167,453 | 20,089 | 147,364 | 150,330 | 121,500 | 2007/2013 | ||||||||||||||||||||||||||||||||||
Total New York City, NY | 2,931 | $ | 361,674 | $ | 1,022,045 | $ | 38,186 | $ | 361,674 | $ | 1,060,231 | $ | 1,421,905 | $ | 272,595 | $ | 1,149,310 | $ | 1,088,658 | $ | 462,300 | ||||||||||||||||||||||||||
New York - Suburban | |||||||||||||||||||||||||||||||||||||||||||||||
Avalon Commons | Smithtown, NY | 312 | $ | 4,679 | $ | 28,286 | $ | 6,335 | $ | 4,679 | $ | 34,621 | $ | 39,300 | $ | 22,581 | $ | 16,719 | $ | 17,712 | $ | — | 1997 | ||||||||||||||||||||||||
Avalon Green I | Elmsford, NY | 105 | 1,820 | 10,525 | 7,522 | 1,820 | 18,047 | 19,867 | 9,870 | 9,997 | 10,633 | — | 1995 | ||||||||||||||||||||||||||||||||||
Avalon Court | Melville, NY | 494 | 9,228 | 50,063 | 6,681 | 9,228 | 56,744 | 65,972 | 35,091 | 30,881 | 32,294 | — | 1997 | ||||||||||||||||||||||||||||||||||
The Avalon | Bronxville, NY | 110 | 2,889 | 28,324 | 8,661 | 2,889 | 36,985 | 39,874 | 19,772 | 20,102 | 21,064 | — | 1999 | ||||||||||||||||||||||||||||||||||
Avalon at Glen Cove (1) | Glen Cove, NY | 256 | 7,871 | 59,969 | 4,245 | 7,871 | 64,214 | 72,085 | 28,810 | 43,275 | 44,881 | — | 2004 |
2017 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Total Cost | ||||||||||||||||||||||||||||||||||||||||||||||
Community | City and state | # of homes | Land and improvements | Building / Construction in Progress & Improvements | Costs Subsequent to Acquisition / Construction | Land and improvements | Building / Construction in Progress & Improvements | Total | Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Encumbrances | Year of Completion/ Acquisition | ||||||||||||||||||||||||||||||||||
Avalon Glen Cove North (1) | Glen Cove, NY | 111 | 2,577 | 37,336 | 531 | 2,577 | 37,867 | 40,444 | 13,875 | 26,569 | 27,768 | — | 2007 | ||||||||||||||||||||||||||||||||||
Avalon White Plains | White Plains, NY | 407 | 15,391 | 137,353 | 996 | 15,391 | 138,349 | 153,740 | 41,499 | 112,241 | 116,188 | — | 2009 | ||||||||||||||||||||||||||||||||||
Avalon Rockville Centre I | Rockville Centre, NY | 349 | 32,212 | 78,806 | 1,013 | 32,212 | 79,819 | 112,031 | 17,284 | 94,747 | 97,195 | — | 2012 | ||||||||||||||||||||||||||||||||||
Avalon Green II | Elmsford, NY | 444 | 27,765 | 77,560 | 223 | 27,765 | 77,783 | 105,548 | 15,714 | 89,834 | 92,537 | — | 2012 | ||||||||||||||||||||||||||||||||||
Avalon Garden City | Garden City, NY | 204 | 18,205 | 49,326 | 416 | 18,205 | 49,742 | 67,947 | 9,436 | 58,511 | 60,173 | — | 2013 | ||||||||||||||||||||||||||||||||||
Avalon Ossining | Ossining, NY | 168 | 6,392 | 30,313 | — | 6,392 | 30,313 | 36,705 | 4,078 | 32,627 | 33,734 | — | 2014 | ||||||||||||||||||||||||||||||||||
Avalon Huntington Station | Huntington Station, NY | 303 | 21,898 | 58,457 | — | 21,898 | 58,457 | 80,355 | 7,224 | 73,131 | 75,462 | — | 2014 | ||||||||||||||||||||||||||||||||||
Avalon Westbury | Westbury, NY | 396 | 69,620 | 43,781 | 10,941 | 69,620 | 54,722 | 124,342 | 15,286 | 109,056 | 110,752 | 78,650 | 2006/2013 | ||||||||||||||||||||||||||||||||||
Total New York - Suburban | 3,659 | $ | 220,547 | $ | 690,099 | $ | 47,564 | $ | 220,547 | $ | 737,663 | $ | 958,210 | $ | 240,520 | $ | 717,690 | $ | 740,393 | $ | 78,650 | ||||||||||||||||||||||||||
New Jersey | |||||||||||||||||||||||||||||||||||||||||||||||
Avalon Cove | Jersey City, NJ | 504 | $ | 8,760 | $ | 82,422 | $ | 22,967 | $ | 8,760 | $ | 105,389 | $ | 114,149 | $ | 64,885 | $ | 49,264 | $ | 51,954 | $ | — | 1997 | ||||||||||||||||||||||||
Eaves Lawrenceville (2) | Lawrenceville, NJ | 632 | 14,650 | 60,486 | 11,899 | 14,650 | 72,385 | 87,035 | 32,099 | 54,936 | 57,334 | — | 1994 | ||||||||||||||||||||||||||||||||||
Avalon Princeton Junction | West Windsor, NJ | 512 | 5,585 | 22,382 | 21,675 | 5,585 | 44,057 | 49,642 | 26,010 | 23,632 | 24,587 | — | 1988/1993 | ||||||||||||||||||||||||||||||||||
Avalon Tinton Falls | Tinton Falls, NJ | 216 | 7,939 | 33,170 | 520 | 7,939 | 33,690 | 41,629 | 11,225 | 30,404 | 31,528 | — | 2008 | ||||||||||||||||||||||||||||||||||
Avalon West Long Branch | West Long Branch, NJ | 180 | 2,721 | 22,925 | 136 | 2,721 | 23,061 | 25,782 | 6,054 | 19,728 | 20,549 | — | 2011 | ||||||||||||||||||||||||||||||||||
Avalon North Bergen | North Bergen, NJ | 164 | 8,984 | 30,994 | 949 | 8,984 | 31,943 | 40,927 | 6,495 | 34,432 | 35,686 | — | 2012 | ||||||||||||||||||||||||||||||||||
Avalon at Wesmont Station I | Wood-Ridge, NJ | 266 | 14,682 | 41,635 | 1,101 | 14,682 | 42,736 | 57,418 | 8,365 | 49,053 | 49,991 | — | 2012 | ||||||||||||||||||||||||||||||||||
Avalon Hackensack at Riverside (1) | Hackensack, NJ | 226 | — | 44,619 | 128 | — | 44,747 | 44,747 | 7,140 | 37,607 | 39,099 | — | 2013 | ||||||||||||||||||||||||||||||||||
Avalon Somerset | Somerset, NJ | 384 | 18,241 | 58,338 | 226 | 18,241 | 58,564 | 76,805 | 9,817 | 66,988 | 69,023 | — | 2013 | ||||||||||||||||||||||||||||||||||
Avalon at Wesmont Station II | Wood-Ridge, NJ | 140 | 6,502 | 16,865 | — | 6,502 | 16,865 | 23,367 | 2,865 | 20,502 | 21,131 | — | 2013 | ||||||||||||||||||||||||||||||||||
Avalon Bloomingdale | Bloomingdale, NJ | 174 | 3,006 | 27,801 | 71 | 3,006 | 27,872 | 30,878 | 4,119 | 26,759 | 27,635 | — | 2014 | ||||||||||||||||||||||||||||||||||
Avalon Wharton | Wharton, NJ | 247 | 2,273 | 48,609 | 98 | 2,273 | 48,707 | 50,980 | 5,167 | 45,813 | 47,455 | — | 2015 | ||||||||||||||||||||||||||||||||||
Avalon Roseland | Roseland, NJ | 136 | 11,288 | 34,928 | — | 11,288 | 34,928 | 46,216 | 3,260 | 42,956 | 44,078 | — | 2015 | ||||||||||||||||||||||||||||||||||
Total New Jersey | 3,781 | $ | 104,631 | $ | 525,174 | $ | 59,770 | $ | 104,631 | $ | 584,944 | $ | 689,575 | $ | 187,501 | $ | 502,074 | $ | 520,050 | $ | — | ||||||||||||||||||||||||||
TOTAL METRO NY/NJ | 10,371 | $ | 686,852 | $ | 2,237,318 | $ | 145,520 | $ | 686,852 | $ | 2,382,838 | $ | 3,069,690 | $ | 700,616 | $ | 2,369,074 | $ | 2,349,101 | $ | 540,950 |
2017 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Total Cost | ||||||||||||||||||||||||||||||||||||||||||||||
Community | City and state | # of homes | Land and improvements | Building / Construction in Progress & Improvements | Costs Subsequent to Acquisition / Construction | Land and improvements | Building / Construction in Progress & Improvements | Total | Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Encumbrances | Year of Completion/ Acquisition | ||||||||||||||||||||||||||||||||||
MID-ATLANTIC | |||||||||||||||||||||||||||||||||||||||||||||||
Washington Metro/Baltimore, MD | |||||||||||||||||||||||||||||||||||||||||||||||
Avalon at Foxhall | Washington, D.C. | 308 | $ | 6,848 | $ | 27,614 | $ | 15,456 | $ | 6,848 | $ | 43,070 | $ | 49,918 | $ | 29,439 | $ | 20,479 | $ | 20,360 | $ | — | 1982/1994 | ||||||||||||||||||||||||
Avalon at Gallery Place | Washington, D.C. | 203 | 8,800 | 39,658 | 2,167 | 8,800 | 41,825 | 50,625 | 21,005 | 29,620 | 31,047 | — | 2003 | ||||||||||||||||||||||||||||||||||
AVA H Street | Washington, D.C. | 138 | 7,425 | 25,282 | 44 | 7,425 | 25,326 | 32,751 | 4,717 | 28,034 | 28,998 | — | 2013 | ||||||||||||||||||||||||||||||||||
Avalon The Albemarle | Washington, D.C. | 231 | 25,140 | 52,459 | 6,592 | 25,140 | 59,051 | 84,191 | 12,774 | 71,417 | 72,134 | — | 1966/2013 | ||||||||||||||||||||||||||||||||||
Eaves Tunlaw Gardens | Washington, D.C. | 166 | 16,430 | 22,902 | 2,344 | 16,430 | 25,246 | 41,676 | 5,727 | 35,949 | 36,751 | — | 1944/2013 | ||||||||||||||||||||||||||||||||||
The Statesman | Washington, D.C. | 281 | 38,140 | 35,352 | 4,111 | 38,140 | 39,463 | 77,603 | 9,916 | 67,687 | 68,834 | — | 1961/2013 | ||||||||||||||||||||||||||||||||||
Eaves Glover Park | Washington, D.C. | 120 | 9,580 | 26,532 | 2,408 | 9,580 | 28,940 | 38,520 | 6,575 | 31,945 | 32,944 | — | 1953/2013 | ||||||||||||||||||||||||||||||||||
Avalon First and M | Washington, D.C. | 469 | 43,700 | 153,950 | 3,195 | 43,700 | 157,145 | 200,845 | 28,554 | 172,291 | 177,621 | — | 2012/2013 | ||||||||||||||||||||||||||||||||||
Avalon at Fairway Hills | Columbia, MD | 720 | 8,603 | 34,432 | 16,302 | 8,603 | 50,734 | 59,337 | 33,393 | 25,944 | 27,384 | — | 1987/1996 | ||||||||||||||||||||||||||||||||||
Eaves Washingtonian Center | North Potomac, MD | 288 | 4,047 | 18,553 | 2,784 | 4,047 | 21,337 | 25,384 | 14,268 | 11,116 | 11,258 | — | 1996 | ||||||||||||||||||||||||||||||||||
Eaves Columbia Town Center | Columbia, MD | 392 | 8,802 | 35,536 | 12,155 | 8,802 | 47,691 | 56,493 | 20,971 | 35,522 | 36,814 | — | 1986/1993 | ||||||||||||||||||||||||||||||||||
Avalon at Grosvenor Station | Bethesda, MD | 497 | 29,159 | 52,993 | 2,642 | 29,159 | 55,635 | 84,794 | 27,043 | 57,751 | 59,405 | — | 2004 | ||||||||||||||||||||||||||||||||||
Avalon at Traville | Rockville, MD | 520 | 14,365 | 55,398 | 4,155 | 14,365 | 59,553 | 73,918 | 27,917 | 46,001 | 48,065 | — | 2004 | ||||||||||||||||||||||||||||||||||
Avalon Russett | Laurel, MD | 238 | 10,200 | 47,524 | 3,220 | 10,200 | 50,744 | 60,944 | 11,037 | 49,907 | 51,425 | 32,200 | 1999/2013 | ||||||||||||||||||||||||||||||||||
Eaves Fair Lakes | Fairfax, VA | 420 | 6,096 | 24,400 | 8,904 | 6,096 | 33,304 | 39,400 | 21,265 | 18,135 | 18,986 | — | 1989/1996 | ||||||||||||||||||||||||||||||||||
AVA Ballston | Arlington, VA | 344 | 7,291 | 29,177 | 16,302 | 7,291 | 45,479 | 52,770 | 29,144 | 23,626 | 25,196 | — | 1990 | ||||||||||||||||||||||||||||||||||
Avalon Tysons Corner | Tysons Corner, VA | 558 | 13,851 | 43,397 | 12,788 | 13,851 | 56,185 | 70,036 | 32,826 | 37,210 | 38,956 | — | 1996 | ||||||||||||||||||||||||||||||||||
Avalon Park Crest | Tysons Corner, VA | 354 | 13,554 | 63,526 | 274 | 13,554 | 63,800 | 77,354 | 11,932 | 65,422 | 67,595 | — | 2013 | ||||||||||||||||||||||||||||||||||
Eaves Fairfax Towers (2) | Falls Church, VA | 415 | 17,889 | 74,727 | 4,446 | 17,889 | 79,173 | 97,062 | 18,433 | 78,629 | 79,263 | — | 1978/2011 | ||||||||||||||||||||||||||||||||||
Avalon Mosaic | Fairfax, VA | 531 | 33,490 | 75,802 | — | 33,490 | 75,802 | 109,292 | 10,461 | 98,831 | 101,637 | — | 2014 | ||||||||||||||||||||||||||||||||||
Avalon Ballston Place | Arlington, VA | 383 | 38,490 | 123,645 | 5,049 | 38,490 | 128,694 | 167,184 | 24,830 | 142,354 | 146,479 | — | 2001/2013 | ||||||||||||||||||||||||||||||||||
Eaves Tysons Corner | Vienna, VA | 217 | 16,030 | 45,420 | 2,967 | 16,030 | 48,387 | 64,417 | 11,140 | 53,277 | 54,923 | — | 1980/2013 | ||||||||||||||||||||||||||||||||||
Avalon Courthouse Place | Arlington, VA | 564 | 56,550 | 178,032 | 10,254 | 56,550 | 188,286 | 244,836 | 37,860 | 206,976 | 213,114 | — | 1999/2013 | ||||||||||||||||||||||||||||||||||
Avalon Arlington North | Arlington, VA | 228 | 21,600 | 59,076 | 34 | 21,600 | 59,110 | 80,710 | 7,797 | 72,913 | 74,995 | — | 2014 | ||||||||||||||||||||||||||||||||||
Avalon Reston Landing | Reston, VA | 400 | 26,710 | 83,084 | 6,212 | 26,710 | 89,296 | 116,006 | 20,027 | 95,979 | 98,438 | — | 2000/2013 | ||||||||||||||||||||||||||||||||||
TOTAL MID-ATLANTIC | 8,985 | $ | 482,790 | $ | 1,428,471 | $ | 144,805 | $ | 482,790 | $ | 1,573,276 | $ | 2,056,066 | $ | 479,051 | $ | 1,577,015 | $ | 1,622,622 | $ | 32,200 | ||||||||||||||||||||||||||
2017 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Total Cost | ||||||||||||||||||||||||||||||||||||||||||||||
Community | City and state | # of homes | Land and improvements | Building / Construction in Progress & Improvements | Costs Subsequent to Acquisition / Construction | Land and improvements | Building / Construction in Progress & Improvements | Total | Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Encumbrances | Year of Completion/ Acquisition | ||||||||||||||||||||||||||||||||||
PACIFIC NORTHWEST | |||||||||||||||||||||||||||||||||||||||||||||||
Seattle, WA | |||||||||||||||||||||||||||||||||||||||||||||||
Avalon Redmond Place | Redmond, WA | 222 | $ | 4,558 | $ | 18,368 | $ | 10,501 | $ | 4,558 | $ | 28,869 | $ | 33,427 | $ | 17,567 | $ | 15,860 | $ | 16,642 | $ | — | 1991/1997 | ||||||||||||||||||||||||
Avalon at Bear Creek | Redmond, WA | 264 | 6,786 | 27,641 | 4,893 | 6,786 | 32,534 | 39,320 | 21,197 | 18,123 | 18,645 | — | 1998/1998 | ||||||||||||||||||||||||||||||||||
Avalon Bellevue | Bellevue, WA | 201 | 6,664 | 24,119 | 2,110 | 6,664 | 26,229 | 32,893 | 15,292 | 17,601 | 18,441 | — | 2001 | ||||||||||||||||||||||||||||||||||
Avalon RockMeadow | Bothell, WA | 206 | 4,777 | 19,765 | 2,930 | 4,777 | 22,695 | 27,472 | 13,423 | 14,049 | 14,457 | — | 2000/2000 | ||||||||||||||||||||||||||||||||||
Avalon ParcSquare | Redmond, WA | 124 | 3,789 | 15,139 | 3,286 | 3,789 | 18,425 | 22,214 | 10,718 | 11,496 | 12,060 | — | 2000/2000 | ||||||||||||||||||||||||||||||||||
AVA Belltown | Seattle, WA | 100 | 5,644 | 12,733 | 1,253 | 5,644 | 13,986 | 19,630 | 7,940 | 11,690 | 12,003 | — | 2001 | ||||||||||||||||||||||||||||||||||
Avalon Meydenbauer | Bellevue, WA | 368 | 12,697 | 77,450 | 1,366 | 12,697 | 78,816 | 91,513 | 26,487 | 65,026 | 67,686 | — | 2008 | ||||||||||||||||||||||||||||||||||
Avalon Towers Bellevue (1) | Bellevue, WA | 397 | — | 123,029 | 1,341 | — | 124,370 | 124,370 | 32,339 | 92,031 | 95,998 | — | 2011 | ||||||||||||||||||||||||||||||||||
AVA Queen Anne | Seattle, WA | 203 | 12,081 | 41,618 | 431 | 12,081 | 42,049 | 54,130 | 9,060 | 45,070 | 46,642 | — | 2012 | ||||||||||||||||||||||||||||||||||
AVA Ballard | Seattle, WA | 265 | 16,460 | 46,926 | 1,002 | 16,460 | 47,928 | 64,388 | 8,335 | 56,053 | 57,893 | — | 2013 | ||||||||||||||||||||||||||||||||||
Avalon Alderwood I | Lynnwood, WA | 367 | 12,294 | 55,626 | — | 12,294 | 55,626 | 67,920 | 6,553 | 61,367 | 63,391 | — | 2015 | ||||||||||||||||||||||||||||||||||
Eaves Redmond Campus (2) | Redmond, WA | 422 | 22,580 | 88,001 | 10,267 | 22,580 | 98,268 | 120,848 | 21,097 | 99,751 | 99,157 | — | 1991/2013 | ||||||||||||||||||||||||||||||||||
Archstone Redmond Lakeview | Redmond, WA | 166 | 10,250 | 26,842 | 3,315 | 10,250 | 30,157 | 40,407 | 6,852 | 33,555 | 34,398 | — | 1987/2013 | ||||||||||||||||||||||||||||||||||
TOTAL PACIFIC NORTHWEST | 3,305 | $ | 118,580 | $ | 577,257 | $ | 42,695 | $ | 118,580 | $ | 619,952 | $ | 738,532 | $ | 196,860 | $ | 541,672 | $ | 557,413 | $ | — |
NORTHERN CALIFORNIA | |||||||||||||||||||||||||||||||||||||||||||||||
San Jose, CA | |||||||||||||||||||||||||||||||||||||||||||||||
Avalon Campbell | Campbell, CA | 348 | $ | 11,830 | $ | 47,828 | $ | 13,561 | $ | 11,830 | $ | 61,389 | $ | 73,219 | $ | 35,368 | $ | 37,851 | $ | 39,955 | $ | 38,800 | 1995 | ||||||||||||||||||||||||
Eaves San Jose | San Jose, CA | 440 | 12,920 | 53,047 | 18,931 | 12,920 | 71,978 | 84,898 | 36,145 | 48,753 | 51,143 | — | 1985/1996 | ||||||||||||||||||||||||||||||||||
Avalon Mountain View | Mountain View, CA | 248 | 9,755 | 39,393 | 10,321 | 9,755 | 49,714 | 59,469 | 30,458 | 29,011 | 30,562 | — | 1986 | ||||||||||||||||||||||||||||||||||
Eaves Creekside | Mountain View, CA | 296 | 6,546 | 26,263 | 21,316 | 6,546 | 47,579 | 54,125 | 25,798 | 28,327 | 29,992 | — | 1962/1997 | ||||||||||||||||||||||||||||||||||
Avalon at Cahill Park | San Jose, CA | 218 | 4,765 | 47,600 | 2,020 | 4,765 | 49,620 | 54,385 | 26,084 | 28,301 | 29,836 | — | 2002 | ||||||||||||||||||||||||||||||||||
Avalon Morrison Park | San Jose, CA | 250 | 13,837 | 64,534 | 72 | 13,837 | 64,606 | 78,443 | 8,779 | 69,664 | 72,002 | — | 2014 | ||||||||||||||||||||||||||||||||||
Avalon Willow Glen | San Jose, CA | 412 | 46,060 | 81,957 | 4,707 | 46,060 | 86,664 | 132,724 | 19,887 | 112,837 | 115,648 | — | 2002/2013 | ||||||||||||||||||||||||||||||||||
Eaves West Valley | San Jose, CA | 873 | 90,890 | 132,040 | 10,251 | 90,890 | 142,291 | 233,181 | 31,153 | 202,028 | 205,771 | — | 1970/2013 | ||||||||||||||||||||||||||||||||||
Eaves Mountain View at Middlefield | Mountain View, CA | 402 | 64,070 | 69,018 | 5,498 | 64,070 | 74,516 | 138,586 | 17,838 | 120,748 | 123,403 | — | 1969/2013 | ||||||||||||||||||||||||||||||||||
Total San Jose, CA | 3,487 | $ | 260,673 | $ | 561,680 | $ | 86,677 | $ | 260,673 | $ | 648,357 | $ | 909,030 | $ | 231,510 | $ | 677,520 | $ | 698,312 | $ | 38,800 | ||||||||||||||||||||||||||
Oakland - East Bay, CA | |||||||||||||||||||||||||||||||||||||||||||||||
Avalon Fremont | Fremont, CA | 308 | $ | 10,746 | $ | 43,399 | $ | 6,656 | $ | 10,746 | $ | 50,055 | $ | 60,801 | $ | 33,523 | $ | 27,278 | $ | 28,098 | $ | — | 1992/1994 | ||||||||||||||||||||||||
Eaves Dublin | Dublin, CA | 204 | 5,276 | 19,642 | 12,366 | 5,276 | 32,008 | 37,284 | $ | 17,814 | 19,470 | 20,653 | — | 1989/1997 |
2017 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Total Cost | ||||||||||||||||||||||||||||||||||||||||||||||
Community | City and state | # of homes | Land and improvements | Building / Construction in Progress & Improvements | Costs Subsequent to Acquisition / Construction | Land and improvements | Building / Construction in Progress & Improvements | Total | Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Encumbrances | Year of Completion/ Acquisition | ||||||||||||||||||||||||||||||||||
Eaves Pleasanton | Pleasanton, CA | 456 | 11,610 | 46,552 | 21,755 | 11,610 | 68,307 | 79,917 | 40,146 | 39,771 | 41,764 | — | 1988/1994 | ||||||||||||||||||||||||||||||||||
Eaves Union City | Union City, CA | 208 | 4,249 | 16,820 | 3,312 | 4,249 | 20,132 | 24,381 | 13,659 | 10,722 | 11,342 | — | 1973/1996 | ||||||||||||||||||||||||||||||||||
Eaves Fremont | Fremont, CA | 235 | 6,581 | 26,583 | 9,992 | 6,581 | 36,575 | 43,156 | 22,733 | 20,423 | 21,385 | — | 1985/1994 | ||||||||||||||||||||||||||||||||||
Avalon Union City | Union City, CA | 439 | 14,732 | 104,024 | 982 | 14,732 | 105,006 | 119,738 | 30,647 | 89,091 | 92,395 | — | 2009 | ||||||||||||||||||||||||||||||||||
Avalon Walnut Creek (1) | Walnut Creek, CA | 422 | — | 148,370 | 3,245 | — | 151,615 | 151,615 | 39,014 | 112,601 | 115,817 | 3,557 | 2010 | ||||||||||||||||||||||||||||||||||
Avalon Dublin Station | Dublin, CA | 253 | 7,772 | 72,142 | 599 | 7,772 | 72,741 | 80,513 | 9,650 | 70,863 | 72,802 | — | 2014 | ||||||||||||||||||||||||||||||||||
Eaves Walnut Creek (2) | Walnut Creek, CA | 510 | 30,320 | 82,375 | 16,828 | 30,320 | 99,203 | 129,523 | 19,294 | 110,229 | 111,534 | — | 1987/2013 | ||||||||||||||||||||||||||||||||||
Avalon Walnut Ridge II | Walnut Creek, CA | 360 | 27,190 | 57,041 | 5,864 | 27,190 | 62,905 | 90,095 | 13,372 | 76,723 | 76,821 | — | 1989/2013 | ||||||||||||||||||||||||||||||||||
Avalon Berkeley | Berkeley, CA | 94 | 4,500 | 28,622 | — | 4,500 | 28,622 | 33,122 | 3,523 | 29,599 | 30,607 | — | 2014 | ||||||||||||||||||||||||||||||||||
Total Oakland - East Bay, CA | 3,489 | $ | 122,976 | $ | 645,570 | $ | 81,599 | $ | 122,976 | $ | 727,169 | $ | 850,145 | $ | 243,375 | $ | 606,770 | $ | 623,218 | $ | 3,557 | ||||||||||||||||||||||||||
San Francisco, CA | |||||||||||||||||||||||||||||||||||||||||||||||
Eaves Daly City | Daly City, CA | 195 | $ | 4,230 | $ | 9,659 | $ | 19,858 | $ | 4,230 | $ | 29,517 | $ | 33,747 | $ | 17,704 | $ | 16,043 | $ | 16,173 | $ | — | 1972/1997 | ||||||||||||||||||||||||
AVA Nob Hill | San Francisco, CA | 185 | 5,403 | 21,567 | 7,597 | 5,403 | 29,164 | 34,567 | 17,103 | 17,464 | 17,980 | 20,800 | 1990/1995 | ||||||||||||||||||||||||||||||||||
Eaves San Rafael | San Rafael, CA | 254 | 5,982 | 16,885 | 24,752 | 5,982 | 41,637 | 47,619 | 22,224 | 25,395 | 26,689 | — | 1973/1996 | ||||||||||||||||||||||||||||||||||
Eaves Foster City | Foster City, CA | 288 | 7,852 | 31,445 | 11,629 | 7,852 | 43,074 | 50,926 | 25,622 | 25,304 | 26,440 | — | 1973/1994 | ||||||||||||||||||||||||||||||||||
Eaves Pacifica | Pacifica, CA | 220 | 6,125 | 24,796 | 3,116 | 6,125 | 27,912 | 34,037 | 18,647 | 15,390 | 16,175 | 17,600 | 1971/1995 | ||||||||||||||||||||||||||||||||||
Avalon Sunset Towers | San Francisco, CA | 243 | 3,561 | 21,321 | 16,129 | 3,561 | 37,450 | 41,011 | 19,817 | 21,194 | 21,819 | — | 1961/1996 | ||||||||||||||||||||||||||||||||||
Eaves Diamond Heights | San Francisco, CA | 154 | 4,726 | 19,130 | 6,189 | 4,726 | 25,319 | 30,045 | 15,390 | 14,655 | 15,313 | — | 1972/1994 | ||||||||||||||||||||||||||||||||||
Avalon at Mission Bay I | San Francisco, CA | 250 | 14,029 | 78,452 | 3,759 | 14,029 | 82,211 | 96,240 | 41,915 | 54,325 | 56,826 | — | 2003 | ||||||||||||||||||||||||||||||||||
Avalon at Mission Bay III | San Francisco, CA | 260 | 28,687 | 119,156 | 447 | 28,687 | 119,603 | 148,290 | 35,003 | 113,287 | 117,091 | — | 2009 | ||||||||||||||||||||||||||||||||||
Avalon Ocean Avenue | San Francisco, CA | 173 | 5,544 | 50,906 | 1,877 | 5,544 | 52,783 | 58,327 | 10,581 | 47,746 | 49,580 | — | 2012 | ||||||||||||||||||||||||||||||||||
AVA 55 Ninth | San Francisco, CA | 273 | 20,267 | 97,321 | 1,258 | 20,267 | 98,579 | 118,846 | 13,135 | 105,711 | 109,414 | — | 2014 | ||||||||||||||||||||||||||||||||||
Avalon Hayes Valley | San Francisco, CA | 182 | 12,595 | 81,232 | — | 12,595 | 81,232 | 93,827 | 7,855 | 85,972 | 88,745 | — | 2015 | ||||||||||||||||||||||||||||||||||
Avalon San Bruno I | San Bruno, CA | 300 | 40,780 | 68,684 | 4,974 | 40,780 | 73,658 | 114,438 | 15,334 | 99,104 | 100,274 | 64,450 | 2004/2013 | ||||||||||||||||||||||||||||||||||
Avalon San Bruno II | San Bruno, CA | 185 | 23,787 | 44,934 | 1,906 | 23,787 | 46,840 | 70,627 | 9,205 | 61,422 | 62,879 | 29,533 | 2007/2013 | ||||||||||||||||||||||||||||||||||
Avalon San Bruno III | San Bruno, CA | 187 | 33,303 | 62,910 | 3,028 | 33,303 | 65,938 | 99,241 | 12,956 | 86,285 | 88,243 | 53,315 | 2010/2013 | ||||||||||||||||||||||||||||||||||
Total San Francisco, CA | 3,349 | $ | 216,871 | $ | 748,398 | $ | 106,519 | $ | 216,871 | $ | 854,917 | $ | 1,071,788 | $ | 282,491 | $ | 789,297 | $ | 813,641 | $ | 185,698 | ||||||||||||||||||||||||||
TOTAL NORTHERN CALIFORNIA | 10,325 | $ | 600,520 | $ | 1,955,648 | $ | 274,795 | $ | 600,520 | $ | 2,230,443 | $ | 2,830,963 | $ | 757,376 | $ | 2,073,587 | $ | 2,135,171 | $ | 228,055 |
2017 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Total Cost | ||||||||||||||||||||||||||||||||||||||||||||||
Community | City and state | # of homes | Land and improvements | Building / Construction in Progress & Improvements | Costs Subsequent to Acquisition / Construction | Land and improvements | Building / Construction in Progress & Improvements | Total | Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Encumbrances | Year of Completion/ Acquisition | ||||||||||||||||||||||||||||||||||
SOUTHERN CALIFORNIA | |||||||||||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | |||||||||||||||||||||||||||||||||||||||||||||||
AVA Burbank | Burbank, CA | 748 | $ | 22,483 | $ | 28,104 | $ | 48,565 | $ | 22,483 | $ | 76,669 | $ | 99,152 | $ | 40,761 | $ | 58,391 | $ | 60,868 | $ | — | 1961/1997 | ||||||||||||||||||||||||
Avalon Woodland Hills | Woodland Hills, CA | 663 | 23,828 | 40,372 | 49,385 | 23,828 | 89,757 | 113,585 | 45,441 | 68,144 | 70,434 | — | 1989/1997 | ||||||||||||||||||||||||||||||||||
Eaves Warner Center | Woodland Hills, CA | 227 | 7,045 | 12,986 | 9,609 | 7,045 | 22,595 | 29,640 | 15,855 | 13,785 | 14,591 | — | 1979/1998 | ||||||||||||||||||||||||||||||||||
Avalon Glendale (1) | Glendale, CA | 223 | — | 42,564 | 2,070 | — | 44,634 | 44,634 | 21,703 | 22,931 | 24,122 | — | 2003 | ||||||||||||||||||||||||||||||||||
Avalon Burbank | Burbank, CA | 400 | 14,053 | 56,827 | 24,724 | 14,053 | 81,551 | 95,604 | 37,558 | 58,046 | 60,327 | — | 1988/2002 | ||||||||||||||||||||||||||||||||||
Avalon Camarillo | Camarillo, CA | 249 | 8,446 | 40,290 | 908 | 8,446 | 41,198 | 49,644 | 16,389 | 33,255 | 34,405 | — | 2006 | ||||||||||||||||||||||||||||||||||
Avalon Wilshire | Los Angeles, CA | 123 | 5,459 | 41,182 | 1,206 | 5,459 | 42,388 | 47,847 | 15,562 | 32,285 | 33,601 | — | 2007 | ||||||||||||||||||||||||||||||||||
Avalon Encino | Encino, CA | 131 | 12,789 | 49,073 | 1,091 | 12,789 | 50,164 | 62,953 | 15,966 | 46,987 | 48,412 | — | 2008 | ||||||||||||||||||||||||||||||||||
Avalon Warner Place | Canoga Park, CA | 210 | 7,920 | 44,845 | 589 | 7,920 | 45,434 | 53,354 | 15,109 | 38,245 | 39,727 | — | 2008 | ||||||||||||||||||||||||||||||||||
AVA Little Tokyo | Los Angeles, CA | 280 | 14,734 | 93,985 | 462 | 14,734 | 94,447 | 109,181 | 10,574 | 98,607 | 101,914 | — | 2015 | ||||||||||||||||||||||||||||||||||
Eaves Phillips Ranch | Pomona, CA | 501 | 9,796 | 41,740 | 1,964 | 9,796 | 43,704 | 53,500 | 10,314 | 43,186 | 44,058 | — | 1989/2011 | ||||||||||||||||||||||||||||||||||
Eaves San Dimas | San Dimas, CA | 102 | 1,916 | 7,819 | 1,389 | 1,916 | 9,208 | 11,124 | 2,202 | 8,922 | 9,214 | — | 1978/2011 | ||||||||||||||||||||||||||||||||||
Eaves San Dimas Canyon | San Dimas, CA | 156 | 2,953 | 12,428 | 736 | 2,953 | 13,164 | 16,117 | 3,145 | 12,972 | 13,289 | — | 1981/2011 | ||||||||||||||||||||||||||||||||||
AVA Pasadena | Pasadena, CA | 84 | 8,400 | 11,547 | 5,522 | 8,400 | 17,069 | 25,469 | 3,214 | 22,255 | 22,879 | 11,073 | 1973/2012 | ||||||||||||||||||||||||||||||||||
Eaves Cerritos | Artesia, CA | 151 | 8,305 | 21,195 | 1,474 | 8,305 | 22,669 | 30,974 | 4,391 | 26,583 | 27,343 | — | 1973/2012 | ||||||||||||||||||||||||||||||||||
Avalon Playa Vista | Los Angeles, CA | 309 | 30,900 | 72,008 | 2,428 | 30,900 | 74,436 | 105,336 | 14,228 | 91,108 | 93,776 | — | 2006/2012 | ||||||||||||||||||||||||||||||||||
Avalon San Dimas | San Dimas, CA | 156 | 9,141 | 30,727 | — | 9,141 | 30,727 | 39,868 | 3,778 | 36,090 | 37,250 | — | 2014 | ||||||||||||||||||||||||||||||||||
Avalon Mission Oaks | Camarillo, CA | 160 | 9,600 | 35,842 | 3,002 | 9,600 | 38,844 | 48,444 | 5,595 | 42,849 | 44,281 | — | 2014 | ||||||||||||||||||||||||||||||||||
Avalon Simi Valley | Simi Valley, CA | 500 | 42,020 | 73,361 | 4,940 | 42,020 | 78,301 | 120,321 | 17,394 | 102,927 | 105,475 | — | 2007/2013 | ||||||||||||||||||||||||||||||||||
Avalon Studio City | Studio City, CA | 276 | 15,756 | 78,178 | 5,778 | 15,756 | 83,956 | 99,712 | 17,139 | 82,573 | 84,242 | — | 2002/2013 | ||||||||||||||||||||||||||||||||||
Avalon Calabasas | Calabasas, CA | 600 | 42,720 | 107,642 | 9,921 | 42,720 | 117,563 | 160,283 | 27,970 | 132,313 | 136,511 | 96,502 | 1988/2013 | ||||||||||||||||||||||||||||||||||
Avalon Oak Creek | Agoura Hills, CA | 336 | 43,540 | 79,974 | 5,842 | 43,540 | 85,816 | 129,356 | 21,276 | 108,080 | 111,280 | — | 2004/2013 | ||||||||||||||||||||||||||||||||||
Avalon Del Mar Station | Pasadena, CA | 347 | 20,560 | 106,556 | 3,731 | 20,560 | 110,287 | 130,847 | 20,717 | 110,130 | 113,568 | — | 2006/2013 | ||||||||||||||||||||||||||||||||||
Eaves Thousand Oaks | Thousand Oaks, CA | 154 | 13,950 | 20,211 | 2,546 | 13,950 | 22,757 | 36,707 | 6,158 | 30,549 | 31,486 | — | 1992/2013 | ||||||||||||||||||||||||||||||||||
Eaves Los Feliz (2) | Los Angeles, CA | 263 | 18,940 | 43,661 | 4,556 | 18,940 | 48,217 | 67,157 | 10,545 | 56,612 | 57,563 | 41,400 | 1989/2013 | ||||||||||||||||||||||||||||||||||
Eaves Woodland Hills | Woodland Hills, CA | 883 | 68,940 | 90,549 | 11,203 | 68,940 | 101,752 | 170,692 | 25,353 | 145,339 | 148,867 | 111,500 | 1971/2013 | ||||||||||||||||||||||||||||||||||
Avalon Thousand Oaks Plaza | Thousand Oaks, CA | 148 | 12,810 | 22,581 | 2,300 | 12,810 | 24,881 | 37,691 | 6,132 | 31,559 | 32,257 | — | 2002/2013 | ||||||||||||||||||||||||||||||||||
Total Los Angeles, CA | 8,380 | $ | 477,004 | $ | 1,306,247 | $ | 205,941 | $ | 477,004 | $ | 1,512,188 | $ | 1,989,192 | $ | 434,469 | $ | 1,554,723 | $ | 1,601,740 | $ | 260,475 | ||||||||||||||||||||||||||
Orange County, CA | |||||||||||||||||||||||||||||||||||||||||||||||
AVA Newport | Costa Mesa, CA | 145 | $ | 1,975 | $ | 3,814 | $ | 9,840 | $ | 1,975 | $ | 13,654 | $ | 15,629 | $ | 6,995 | $ | 8,634 | $ | 9,130 | $ | — | 1956/1996 | ||||||||||||||||||||||||
Eaves Mission Viejo | Mission Viejo, CA | 166 | 2,517 | 9,257 | 3,580 | 2,517 | 12,837 | 15,354 | 8,660 | 6,694 | 7,145 | 7,635 | 1984/1996 |
2017 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Total Cost | ||||||||||||||||||||||||||||||||||||||||||||||
Community | City and state | # of homes | Land and improvements | Building / Construction in Progress & Improvements | Costs Subsequent to Acquisition / Construction | Land and improvements | Building / Construction in Progress & Improvements | Total | Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Encumbrances | Year of Completion/ Acquisition | ||||||||||||||||||||||||||||||||||
Eaves South Coast | Costa Mesa, CA | 258 | 4,709 | 16,063 | 13,442 | 4,709 | 29,505 | 34,214 | 16,883 | 17,331 | 17,829 | — | 1973/1996 | ||||||||||||||||||||||||||||||||||
Eaves Santa Margarita | Rancho Santa Margarita, CA | 301 | 4,607 | 16,911 | 10,917 | 4,607 | 27,828 | 32,435 | 15,849 | 16,586 | 17,224 | — | 1990/1997 | ||||||||||||||||||||||||||||||||||
Eaves Huntington Beach | Huntington Beach, CA | 304 | 4,871 | 19,745 | 10,267 | 4,871 | 30,012 | 34,883 | 19,912 | 14,971 | 15,964 | — | 1971/1997 | ||||||||||||||||||||||||||||||||||
Avalon Anaheim Stadium | Anaheim, CA | 251 | 27,874 | 69,156 | 1,608 | 27,874 | 70,764 | 98,638 | 21,751 | 76,887 | 78,955 | — | 2009 | ||||||||||||||||||||||||||||||||||
Avalon Irvine I | Irvine, CA | 279 | 9,911 | 67,520 | 776 | 9,911 | 68,296 | 78,207 | 19,629 | 58,578 | 60,694 | — | 2010 | ||||||||||||||||||||||||||||||||||
Avalon Irvine II | Irvine, CA | 179 | 4,358 | 40,912 | — | 4,358 | 40,912 | 45,270 | 7,217 | 38,053 | 39,535 | — | 2013 | ||||||||||||||||||||||||||||||||||
Eaves Lake Forest | Lake Forest, CA | 225 | 5,199 | 21,134 | 3,248 | 5,199 | 24,382 | 29,581 | 5,614 | 23,967 | 23,870 | — | 1975/2011 | ||||||||||||||||||||||||||||||||||
Avalon Baker Ranch | Lake Forest, CA | 430 | 31,689 | 98,411 | — | 31,689 | 98,411 | 130,100 | 9,406 | 120,694 | 124,442 | — | 2015 | ||||||||||||||||||||||||||||||||||
Eaves Seal Beach (2) | Seal Beach, CA | 549 | 46,790 | 99,999 | 5,640 | 46,790 | 105,639 | 152,429 | 22,914 | 129,515 | 132,659 | — | 1971/2013 | ||||||||||||||||||||||||||||||||||
Total Orange County, CA | 3,087 | $ | 144,500 | $ | 462,922 | $ | 59,318 | $ | 144,500 | $ | 522,240 | $ | 666,740 | $ | 154,830 | $ | 511,910 | $ | 527,447 | $ | 7,635 | ||||||||||||||||||||||||||
San Diego, CA | |||||||||||||||||||||||||||||||||||||||||||||||
AVA Pacific Beach | San Diego, CA | 564 | $ | 9,922 | $ | 40,580 | $ | 40,849 | $ | 9,922 | $ | 81,429 | $ | 91,351 | $ | 41,108 | $ | 50,243 | $ | 53,224 | $ | — | 1969/1997 | ||||||||||||||||||||||||
Eaves Mission Ridge | San Diego, CA | 200 | 2,710 | 10,924 | 12,128 | 2,710 | 23,052 | 25,762 | 14,637 | 11,125 | 11,696 | — | 1960/1997 | ||||||||||||||||||||||||||||||||||
AVA Cortez Hill (1) | San Diego, CA | 299 | 2,768 | 20,134 | 23,567 | 2,768 | 43,701 | 46,469 | 23,459 | 23,010 | 24,543 | — | 1973/1998 | ||||||||||||||||||||||||||||||||||
Avalon Fashion Valley | San Diego, CA | 161 | 19,627 | 44,972 | 696 | 19,627 | 45,668 | 65,295 | 14,567 | 50,728 | 52,186 | — | 2008 | ||||||||||||||||||||||||||||||||||
Eaves Rancho Penasquitos | San Diego, CA | 250 | 6,692 | 27,143 | 3,242 | 6,692 | 30,385 | 37,077 | 6,960 | 30,117 | 30,727 | — | 1986/2011 | ||||||||||||||||||||||||||||||||||
Avalon Vista | Vista, CA | 221 | 12,689 | 43,327 | — | 12,689 | 43,327 | 56,016 | 4,125 | 51,891 | 53,512 | — | 2015 | ||||||||||||||||||||||||||||||||||
Eaves La Mesa | La Mesa, CA | 168 | 9,490 | 28,482 | 1,962 | 9,490 | 30,444 | 39,934 | 7,189 | 32,745 | 33,840 | — | 1989/2013 | ||||||||||||||||||||||||||||||||||
Total San Diego, CA | 1,863 | $ | 63,898 | $ | 215,562 | $ | 82,444 | $ | 63,898 | $ | 298,006 | $ | 361,904 | $ | 112,045 | $ | 249,859 | $ | 259,728 | $ | — | ||||||||||||||||||||||||||
TOTAL SOUTHERN CALIFORNIA | 13,330 | $ | 685,402 | $ | 1,984,731 | $ | 347,703 | $ | 685,402 | $ | 2,332,434 | $ | 3,017,836 | $ | 701,344 | $ | 2,316,492 | $ | 2,388,915 | $ | 268,110 | ||||||||||||||||||||||||||
TOTAL ESTABLISHED COMMUNITIES | 54,713 | $ | 2,857,946 | $ | 9,575,234 | $ | 1,132,583 | $ | 2,857,946 | $ | 10,707,817 | $ | 13,565,763 | $ | 3,325,891 | $ | 10,239,872 | $ | 10,455,896 | $ | 1,207,475 |
2017 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Total Cost | ||||||||||||||||||||||||||||||||||||||||||||||
Community | City and state | # of homes | Land and improvements | Building / Construction in Progress & Improvements | Costs Subsequent to Acquisition / Construction | Land and improvements | Building / Construction in Progress & Improvements | Total | Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Encumbrances | Year of Completion/ Acquisition | ||||||||||||||||||||||||||||||||||
OTHER STABILIZED | |||||||||||||||||||||||||||||||||||||||||||||||
Avalon Silicon Valley | Sunnyvale, CA | 710 | $ | 20,713 | $ | 99,573 | $ | 34,963 | $ | 20,713 | $ | 134,536 | $ | 155,249 | $ | 71,577 | $ | 83,672 | $ | 85,041 | $ | — | 1998 | ||||||||||||||||||||||||
Avalon Towers on the Peninsula | Mountain View, CA | 211 | 9,560 | 56,136 | 14,467 | 9,560 | 70,603 | 80,163 | 31,563 | 48,600 | 45,523 | — | 2002 | ||||||||||||||||||||||||||||||||||
Eaves San Marcos | San Marcos, CA | 184 | 3,277 | 13,385 | 4,557 | 3,277 | 17,942 | 21,219 | 3,641 | 17,578 | 18,302 | — | 1988/2011 | ||||||||||||||||||||||||||||||||||
Avalon Glendora | Glendora, CA | 280 | 18,311 | 64,759 | 100 | 18,311 | 64,859 | 83,170 | 4,974 | 78,196 | 80,358 | — | 2016 | ||||||||||||||||||||||||||||||||||
Avalon Irvine III | Irvine, CA | 156 | 11,607 | 43,977 | — | 11,607 | 43,977 | 55,584 | 2,842 | 52,742 | 54,232 | — | 2016 | ||||||||||||||||||||||||||||||||||
Avalon Dublin Station II | Dublin, CA | 252 | 7,762 | 76,584 | 26 | 7,762 | 76,610 | 84,372 | 4,821 | 79,551 | 82,106 | — | 2016 | ||||||||||||||||||||||||||||||||||
AVA North Hollywood | North Hollywood, CA | 156 | 18,408 | 49,940 | 4,089 | 18,408 | 54,029 | 72,437 | 3,810 | 68,627 | 70,816 | — | 2015/2016 | ||||||||||||||||||||||||||||||||||
AVA Studio City II | Studio City, CA | 101 | 4,626 | 22,954 | 5,487 | 4,626 | 28,441 | 33,067 | 5,160 | 27,907 | 24,848 | — | 1991/2013 | ||||||||||||||||||||||||||||||||||
Avalon Santa Monica on Main | Santa Monica, CA | 133 | 32,000 | 60,770 | 13,179 | 32,000 | 73,949 | 105,949 | 13,764 | 92,185 | 94,217 | — | 2007/2013 | ||||||||||||||||||||||||||||||||||
Avalon La Jolla Colony | San Diego, CA | 180 | 16,760 | 27,694 | 12,052 | 16,760 | 39,746 | 56,506 | 7,968 | 48,538 | 50,383 | — | 1987/2013 | ||||||||||||||||||||||||||||||||||
Eaves Old Town Pasadena | Pasadena, CA | 96 | 9,110 | 15,371 | 6,778 | 9,110 | 22,149 | 31,259 | 4,085 | 27,174 | 22,644 | — | 1972/2013 | ||||||||||||||||||||||||||||||||||
Avalon Walnut Ridge I | Walnut Creek, CA | 106 | 9,860 | 19,850 | 5,268 | 9,860 | 25,118 | 34,978 | 4,802 | 30,176 | 30,921 | — | 2000/2013 | ||||||||||||||||||||||||||||||||||
Avalon Pasadena | Pasadena, CA | 120 | 10,240 | 31,558 | 6,679 | 10,240 | 38,237 | 48,477 | 7,273 | 41,204 | 42,580 | — | 2004/2013 | ||||||||||||||||||||||||||||||||||
AVA Studio City I | Studio City, CA | 450 | 17,658 | 90,715 | 32,819 | 17,658 | 123,534 | 141,192 | 20,681 | 120,511 | 116,321 | — | 1987/2013 | ||||||||||||||||||||||||||||||||||
The Lodge Denver West | Lakewood, CO | 252 | 8,047 | 63,586 | 5,284 | 8,047 | 68,870 | 76,917 | 1,966 | 74,951 | N/A | — | 2016/2017 | ||||||||||||||||||||||||||||||||||
850 Boca | Boca Raton, FL | 370 | 21,430 | 108,585 | 8,717 | 21,430 | 117,302 | 138,732 | 333 | 138,399 | N/A | — | 2017/2017 | ||||||||||||||||||||||||||||||||||
Avalon at Chestnut Hill | Chestnut Hill, MA | 204 | 14,572 | 45,911 | 10,260 | 14,572 | 56,171 | 70,743 | 19,293 | 51,450 | 45,640 | 38,097 | 2007 | ||||||||||||||||||||||||||||||||||
AVA Back Bay | Boston, MA | 271 | 9,034 | 36,540 | 47,327 | 9,034 | 83,867 | 92,901 | 34,038 | 58,863 | 60,700 | — | 1968/1998 | ||||||||||||||||||||||||||||||||||
AVA Theater District | Boston, MA | 398 | 17,070 | 163,580 | 40 | 17,070 | 163,620 | 180,690 | 13,499 | 167,191 | 172,387 | — | 2015 | ||||||||||||||||||||||||||||||||||
Avalon Marlborough | Marlborough, MA | 350 | 15,317 | 60,397 | 11 | 15,317 | 60,408 | 75,725 | 5,353 | 70,372 | 72,339 | — | 2015 | ||||||||||||||||||||||||||||||||||
Avalon Framingham | Framingham, MA | 180 | 9,315 | 34,632 | — | 9,315 | 34,632 | 43,947 | 2,731 | 41,216 | 42,395 | — | 2015 | ||||||||||||||||||||||||||||||||||
Avalon Bear Hill | Waltham, MA | 324 | 27,350 | 94,168 | 28,764 | 27,350 | 122,932 | 150,282 | 23,723 | 126,559 | 131,023 | — | 1999/2013 | ||||||||||||||||||||||||||||||||||
Avalon at Edgewater | Edgewater, NJ | 168 | 5,982 | 24,389 | 9,182 | 5,982 | 33,571 | 39,553 | 15,351 | 24,202 | 21,123 | — | 2002 | ||||||||||||||||||||||||||||||||||
Avalon Bloomfield Station | Bloomfield, NJ | 224 | 10,701 | 39,927 | — | 10,701 | 39,927 | 50,628 | 3,594 | 47,034 | 48,031 | — | 2015 | ||||||||||||||||||||||||||||||||||
Avalon Union | Union, NJ | 202 | 11,695 | 36,282 | — | 11,695 | 36,282 | 47,977 | 2,519 | 45,458 | 46,615 | — | 2016 | ||||||||||||||||||||||||||||||||||
Avalon Hoboken | Hoboken, NJ | 217 | 37,237 | 87,220 | 8,327 | 37,237 | 95,547 | 132,784 | 11,390 | 121,394 | 124,435 | 67,904 | 2008/2016 | ||||||||||||||||||||||||||||||||||
Avalon Towers | Long Beach, NY | 109 | 3,118 | 11,973 | 24,372 | 3,118 | 36,345 | 39,463 | 16,198 | 23,265 | 21,775 | — | 1990/1995 | ||||||||||||||||||||||||||||||||||
Avalon Riverview North (1) | Long Island City, NY | 602 | — | 165,966 | 14,176 | — | 180,142 | 180,142 | 59,765 | 120,377 | 122,418 | — | 2008 | ||||||||||||||||||||||||||||||||||
AVA DoBro | Brooklyn, NY | 500 | 77,416 | 203,827 | — | 77,416 | 203,827 | 281,243 | 10,586 | 270,657 | 294,503 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon Green III | Elmsford, NY | 68 | 4,985 | 17,300 | — | 4,985 | 17,300 | 22,285 | 1,248 | 21,037 | 21,585 | — | 2016 | ||||||||||||||||||||||||||||||||||
Archstone Lexington | Flower Mound, TX | 222 | 4,540 | 25,946 | 2,073 | 4,540 | 28,019 | 32,559 | 6,883 | 25,676 | 26,669 | 21,700 | 2000/2013 | ||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Total Cost | ||||||||||||||||||||||||||||||||||||||||||||||
Community | City and state | # of homes | Land and improvements | Building / Construction in Progress & Improvements | Costs Subsequent to Acquisition / Construction | Land and improvements | Building / Construction in Progress & Improvements | Total | Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Encumbrances | Year of Completion/ Acquisition | ||||||||||||||||||||||||||||||||||
Archstone Toscano | Houston, TX | 474 | 15,607 | 72,889 | — | 15,607 | 72,889 | 88,496 | 11,044 | 77,452 | 79,819 | — | 2014 | ||||||||||||||||||||||||||||||||||
Memorial Heights Villages | Houston, TX | 318 | 9,607 | 48,448 | — | 9,607 | 48,448 | 58,055 | 10,516 | 47,539 | 48,508 | — | 2014 | ||||||||||||||||||||||||||||||||||
Eaves Fairfax City | Fairfax, VA | 141 | 2,152 | 8,907 | 5,475 | 2,152 | 14,382 | 16,534 | 8,176 | 8,358 | 8,773 | — | 1988/1997 | ||||||||||||||||||||||||||||||||||
Avalon at Arlington Square | Arlington, VA | 842 | 22,041 | 90,296 | 31,555 | 22,041 | 121,851 | 143,892 | 54,059 | 89,833 | 87,446 | — | 2001 | ||||||||||||||||||||||||||||||||||
Avalon Potomac Yard | Alexandria, VA | 323 | 24,225 | 77,137 | 7,648 | 24,225 | 84,785 | 109,010 | 8,659 | 100,351 | 103,333 | — | 2014/2016 | ||||||||||||||||||||||||||||||||||
Avalon Clarendon | Arlington, VA | 300 | 22,573 | 91,001 | 8,521 | 22,573 | 99,522 | 122,095 | 8,530 | 113,565 | 117,845 | — | 2002/2016 | ||||||||||||||||||||||||||||||||||
Avalon Columbia Pike | Arlington, VA | 269 | 18,830 | 78,395 | 6,460 | 18,830 | 84,855 | 103,685 | 5,993 | 97,692 | 100,352 | 68,637 | 2009/2016 | ||||||||||||||||||||||||||||||||||
Avalon Dunn Loring | Vienna, VA | 440 | 29,377 | 107,775 | 14,301 | 29,377 | 122,076 | 151,453 | 3,972 | 147,481 | N/A | — | 2012/2017 | ||||||||||||||||||||||||||||||||||
Avalon Falls Church | Falls Church, VA | 384 | 39,544 | 66,160 | — | 39,544 | 66,160 | 105,704 | 5,899 | 99,805 | 102,279 | — | 2016 | ||||||||||||||||||||||||||||||||||
Oakwood Arlington | Arlington, VA | 184 | 18,850 | 38,545 | 3,052 | 18,850 | 41,597 | 60,447 | 8,608 | 51,839 | 53,139 | — | 1987/2013 | ||||||||||||||||||||||||||||||||||
AVA Capitol Hill | Seattle, WA | 249 | 20,613 | 60,014 | — | 20,613 | 60,014 | 80,627 | 4,194 | 76,433 | 78,906 | — | 2016 | ||||||||||||||||||||||||||||||||||
Avalon Alderwood II | Redmond, WA | 124 | 5,072 | 21,369 | — | 5,072 | 21,369 | 26,441 | 1,104 | 25,337 | 26,115 | — | 2016 | ||||||||||||||||||||||||||||||||||
TOTAL OTHER STABILIZED | 11,844 | $ | 696,192 | $ | 2,654,431 | $ | 376,009 | $ | 696,192 | $ | 3,030,440 | $ | 3,726,632 | $ | 546,185 | $ | 3,180,447 | $ | 2,876,445 | $ | 196,338 | ||||||||||||||||||||||||||
LEASE-UP | |||||||||||||||||||||||||||||||||||||||||||||||
Avalon West Hollywood | West Hollywood, CA | 294 | $ | 35,187 | $ | 115,385 | $ | — | $ | 35,187 | $ | 115,385 | $ | 150,572 | $ | 1,697 | $ | 148,875 | $ | 130,173 | $ | — | 2017 | ||||||||||||||||||||||||
Avalon Chino Hills | Chino Hills, CA | 331 | 16,615 | 81,753 | — | 16,615 | 81,753 | 98,368 | 2,127 | 96,241 | 87,406 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon Huntington Beach | Huntington Beach, CA | 378 | 13,055 | 105,719 | 222 | 13,055 | 105,941 | 118,996 | 4,995 | 114,001 | 115,269 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon North Station | Boston, MA | 503 | 22,788 | 245,234 | 306 | 22,788 | 245,540 | 268,328 | 5,918 | 262,410 | 249,022 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon Quincy | Quincy, MA | 395 | 14,674 | 78,151 | — | 14,674 | 78,151 | 92,825 | 2,972 | 89,853 | 84,132 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon Easton | Easton, MA | 290 | 3,151 | 59,245 | — | 3,151 | 59,245 | 62,396 | 840 | 61,556 | 29,074 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon Hunt Valley | Hunt Valley, MD | 332 | 10,842 | 62,596 | — | 10,842 | 62,596 | 73,438 | 2,144 | 71,294 | 67,019 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon Laurel | Laurel, MD | 344 | 10,122 | 61,803 | — | 10,122 | 61,803 | 71,925 | 2,919 | 69,006 | 69,532 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon Princeton | Princeton, NJ | 280 | 26,459 | 68,175 | 303 | 26,459 | 68,478 | 94,937 | 2,363 | 92,574 | 88,360 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon Willoughby Square | Brooklyn, NY | 326 | 50,475 | 132,892 | — | 50,475 | 132,892 | 183,367 | 6,901 | 176,466 | 153,310 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon Great Neck | Great Neck, NY | 191 | 14,776 | 64,459 | — | 14,776 | 64,459 | 79,235 | 931 | 78,304 | 55,671 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon Rockville Centre II | Rockville Centre, NY | 165 | 7,534 | 49,115 | — | 7,534 | 49,115 | 56,649 | 267 | 56,382 | 26,796 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon Esterra Park | Redmond, WA | 482 | 22,668 | 112,441 | 305 | 22,668 | 112,746 | 135,414 | 4,963 | 130,451 | 127,986 | — | 2017 | ||||||||||||||||||||||||||||||||||
Avalon Newcastle Commons I | Newcastle, WA | 378 | 9,622 | 109,453 | — | 9,622 | 109,453 | 119,075 | 1,889 | 117,186 | 92,267 | — | 2017 | ||||||||||||||||||||||||||||||||||
TOTAL LEASE-UP | 4,689 | $ | 257,968 | $ | 1,346,421 | $ | 1,136 | $ | 257,968 | $ | 1,347,557 | $ | 1,605,525 | $ | 40,926 | $ | 1,564,599 | $ | 1,376,017 | $ | — |
2017 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Total Cost | ||||||||||||||||||||||||||||||||||||||||||||||
Community | City and state | # of homes | Land and improvements | Building / Construction in Progress & Improvements | Costs Subsequent to Acquisition / Construction | Land and improvements | Building / Construction in Progress & Improvements | Total | Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Encumbrances | Year of Completion/ Acquisition | ||||||||||||||||||||||||||||||||||
REDEVELOPMENT | |||||||||||||||||||||||||||||||||||||||||||||||
Avalon on the Alameda | San Jose, CA | 305 | $ | 6,119 | $ | 50,225 | $ | 10,087 | $ | 6,119 | $ | 60,312 | $ | 66,431 | $ | 33,696 | $ | 32,735 | $ | 27,497 | $ | — | 1999 | ||||||||||||||||||||||||
AVA Toluca Hills | Los Angeles, CA | 1,151 | 86,450 | 161,256 | 37,513 | 86,450 | 198,769 | 285,219 | 39,361 | 245,858 | 227,814 | — | 1973/2013 | ||||||||||||||||||||||||||||||||||
AVA Van Ness | Washington, D.C. | 269 | 22,890 | 58,691 | 9,030 | 22,890 | 67,721 | 90,611 | 13,443 | 77,168 | 74,556 | — | 1978/2013 | ||||||||||||||||||||||||||||||||||
Avalon Prudential Center II | Boston, MA | 266 | 8,776 | 35,496 | 52,864 | 8,776 | 88,360 | 97,136 | 32,748 | 64,388 | 59,218 | — | 1968/1998 | ||||||||||||||||||||||||||||||||||
Avalon at Florham Park | Florham Park, NJ | 270 | 6,647 | 34,906 | 7,083 | 6,647 | 41,989 | 48,636 | 22,468 | 26,168 | 23,830 | — | 2001 | ||||||||||||||||||||||||||||||||||
Avalon at Edgewater II (5) | Edgewater, NJ | 240 | — | 299 | 37,003 | — | 37,302 | 37,302 | — | 37,302 | N/A | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon Willow | Mamaroneck, NY | 227 | 6,207 | 40,791 | 9,010 | 6,207 | 49,801 | 56,008 | 26,424 | 29,584 | 24,153 | — | 2000 | ||||||||||||||||||||||||||||||||||
Avalon Midtown West | New York, NY | 550 | 154,730 | 180,253 | 23,290 | 154,730 | 203,543 | 358,273 | 41,452 | 316,821 | 313,096 | 100,500 | 1998/2013 | ||||||||||||||||||||||||||||||||||
Avalon Ballston Square | Arlington, VA | 714 | 71,640 | 215,937 | 16,378 | 71,640 | 232,315 | 303,955 | 47,256 | 256,699 | 262,722 | — | 1992/2013 | ||||||||||||||||||||||||||||||||||
TOTAL REDEVLOPMENT | 3,992 | $ | 363,459 | $ | 777,854 | $ | 202,258 | $ | 363,459 | $ | 980,112 | $ | 1,343,571 | $ | 256,848 | $ | 1,086,723 | $ | 1,012,886 | $ | 100,500 | ||||||||||||||||||||||||||
TOTAL CURRENT COMMUNITIES (6) | 75,238 | $ | 4,175,565 | $ | 14,353,940 | $ | 1,711,986 | $ | 4,175,565 | $ | 16,065,926 | $ | 20,241,491 | $ | 4,169,850 | $ | 16,071,641 | $ | 15,721,244 | $ | 1,504,313 | ||||||||||||||||||||||||||
DEVELOPMENT (7) | |||||||||||||||||||||||||||||||||||||||||||||||
Avalon Dogpatch | San Francisco, CA | 326 | $ | 9,494 | $ | 73,702 | $ | 99,991 | $ | 9,494 | $ | 173,693 | $ | 183,187 | $ | 621 | $ | 182,566 | $ | 108,565 | $ | — | N/A | ||||||||||||||||||||||||
Avalon Public Market | Emeryville, CA | 289 | — | 83 | 55,789 | — | 55,872 | 55,872 | — | 55,872 | 29,698 | — | N/A | ||||||||||||||||||||||||||||||||||
AVA Hollywood | Hollywood, CA | 695 | — | 275 | 168,732 | — | 169,007 | 169,007 | — | 169,007 | 123,267 | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon Walnut Creek II (1) | Walnut Creek, CA | 200 | — | — | 8,812 | — | 8,812 | 8,812 | — | 8,812 | N/A | — | N/A | ||||||||||||||||||||||||||||||||||
AVA NoMa | Washington, D.C. | 438 | 18,831 | 91,621 | 27,007 | 18,831 | 118,628 | 137,459 | 1,592 | 135,867 | 109,200 | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon at the Hingham Shipyard II | Hingham, MA | 190 | — | — | 23,792 | — | 23,792 | 23,792 | — | 23,792 | N/A | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon Sudbury | Sudbury, MA | 250 | — | — | 33,595 | — | 33,595 | 33,595 | — | 33,595 | N/A | — | N/A | ||||||||||||||||||||||||||||||||||
AVA Wheaton | Wheaton, MD | 319 | 2,624 | 29,826 | 38,017 | 2,624 | 67,843 | 70,467 | 279 | 70,188 | 35,361 | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon Towson | Towson, MD | 371 | — | — | 3,985 | — | 3,985 | 3,985 | — | 3,985 | N/A | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon Maplewood | Maplewood, NJ | 235 | 3,230 | 13,019 | 45,009 | 3,230 | 58,028 | 61,258 | 56 | 61,202 | 48,453 | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon Boonton | Boonton, NJ | 350 | — | 124 | 29,830 | — | 29,954 | 29,954 | — | 29,954 | 8,292 | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon Teaneck | Teaneck, NJ | 248 | — | 42 | 18,567 | — | 18,609 | 18,609 | — | 18,609 | 14,034 | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon Piscataway | Piscataway, NJ | 360 | — | 248 | 28,055 | — | 28,303 | 28,303 | — | 28,303 | N/A | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon Brooklyn Bay | Brooklyn, NY | 180 | 8,830 | 76,690 | 5,004 | 8,830 | 81,694 | 90,524 | 781 | 89,743 | 58,833 | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon Somers | Somers, NY | 152 | 4,704 | 33,404 | 4,046 | 4,704 | 37,450 | 42,154 | 370 | 41,784 | 16,586 | — | N/A | ||||||||||||||||||||||||||||||||||
11 West 61st Street | New York, NY | 172 | — | 339 | 440,373 | — | 440,712 | 440,712 | — | 440,712 | 348,821 | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon Yonkers | Yonkers, NY | 590 | — | — | 23,300 | — | 23,300 | 23,300 | — | 23,300 | N/A | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon Belltown Towers | Seattle, WA | 275 | — | 55 | 50,581 | — | 50,636 | 50,636 | — | 50,636 | 29,386 | — | N/A |
2017 | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Total Cost | ||||||||||||||||||||||||||||||||||||||||||||||
Community | City and state | # of homes | Land and improvements | Building / Construction in Progress & Improvements | Costs Subsequent to Acquisition / Construction | Land and improvements | Building / Construction in Progress & Improvements | Total | Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Total Cost, Net of Accumulated Depreciation | Encumbrances | Year of Completion/ Acquisition | ||||||||||||||||||||||||||||||||||
AVA Esterra Park | Redmond, WA | 323 | — | 123 | 36,925 | — | 37,048 | 37,048 | — | 37,048 | N/A | — | N/A | ||||||||||||||||||||||||||||||||||
Avalon North Creek | Bothell, WA | 316 | — | — | 15,432 | — | 15,432 | 15,432 | — | 15,432 | N/A | — | N/A | ||||||||||||||||||||||||||||||||||
TOTAL DEVELOPMENT | 6,279 | $ | 47,713 | $ | 319,551 | $ | 1,156,842 | $ | 47,713 | $ | 1,476,393 | $ | 1,524,106 | $ | 3,699 | $ | 1,520,407 | $ | 930,496 | $ | — | ||||||||||||||||||||||||||
Land Held for Development | N/A | $ | 68,364 | $ | — | $ | — | $ | 68,364 | $ | — | $ | 68,364 | $ | — | $ | 68,364 | $ | 84,293 | $ | — | ||||||||||||||||||||||||||
Corporate Overhead | N/A | 14,040 | 10,746 | 77,189 | 14,040 | 87,935 | 101,975 | 44,830 | 57,145 | 53,309 | 5,900,000 | ||||||||||||||||||||||||||||||||||||
2017 Disposed Communities | N/A | — | — | — | — | — | — | — | — | 243,652 | — | ||||||||||||||||||||||||||||||||||||
TOTAL | 81,517 | $ | 4,305,682 | $ | 14,684,237 | $ | 2,946,017 | $ | 4,305,682 | $ | 17,630,254 | $ | 21,935,936 | $ | 4,218,379 | $ | 17,717,557 | $ | 17,032,994 | $ | 7,404,313 |
(1) | Some or all of the land for this community is subject to a land lease. |
(2) | This community was under redevelopment for some or all of 2017, with the redevelopment effort primarily focused on the exterior and/or common area, with no expected material impact on community operations. This community is therefore included in the Established Community portfolio and not classified as a Redevelopment Community. |
(3) | In 2017, the Company acquired the land encumbered by a ground lease for this community. |
(4) | In 2017, the Company completed final construction cost allocations between these dual-branded communities. |
(5) | Represents the reconstruction of the building destroyed in the Edgewater casualty loss. Due to the nature of this reconstruction, the 240 apartment homes that the Company expects the new building to contain upon completion are not included in the apartment home count presented elsewhere in this Form 10-K, and will be included upon completion. Similar to a Development Community, the land for Edgewater is included in Costs Subsequent to Acquisition /Construction. |
(6) | Current Communities excludes Unconsolidated Communities. |
(7) | Development Communities excludes AVA North Point, which is being developed within an unconsolidated joint venture. |
For the year ended | |||||||||||
12/31/2017 | 12/31/2016 | 12/31/2015 | |||||||||
Balance, beginning of period | $ | 20,776,626 | $ | 19,268,099 | $ | 17,849,316 | |||||
Acquisitions, construction costs and improvements | 1,526,516 | 1,788,515 | 1,667,989 | ||||||||
Dispositions, including casualty losses and impairment loss on planned dispositions | (367,206 | ) | (279,988 | ) | (249,206 | ) | |||||
Balance, end of period | $ | 21,935,936 | $ | 20,776,626 | $ | 19,268,099 |
For the year ended | |||||||||||
12/31/2017 | 12/31/2016 | 12/31/2015 | |||||||||
Balance, beginning of period | $ | 3,743,632 | $ | 3,325,790 | $ | 2,913,576 | |||||
Depreciation, including discontinued operations | 584,150 | 531,434 | 477,923 | ||||||||
Dispositions, including casualty losses | (109,403 | ) | (113,592 | ) | (65,709 | ) | |||||
Balance, end of period | $ | 4,218,379 | $ | 3,743,632 | $ | 3,325,790 |
Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 (1) | Year Ended December 31, 2013 (1) | ||||||||||||||||
Income from continuing operations before cumulative effect of change in accounting principle | $ | 876,801 | $ | 1,034,013 | $ | 743,216 | $ | 668,516 | $ | 57,827 | ||||||||||
(Plus): | ||||||||||||||||||||
Equity in income of unconsolidated entities, net of distributions received | 29,226 | 60,103 | 84,764 | 71,781 | 74,575 | |||||||||||||||
Amortization of capitalized interest (2) | 29,927 | 27,779 | 25,150 | 22,489 | 20,157 | |||||||||||||||
Earnings before fixed charges | 935,954 | 1,121,895 | 853,130 | 762,786 | 152,559 | |||||||||||||||
(Plus) Fixed charges: | ||||||||||||||||||||
Portion of rents representative of the interest factor | 8,338 | 8,483 | 7,790 | 7,504 | 7,112 | |||||||||||||||
Interest expense | 199,661 | 187,510 | 175,615 | 180,618 | 172,402 | |||||||||||||||
Interest capitalized | 64,420 | 78,872 | 79,834 | 69,961 | 66,838 | |||||||||||||||
Preferred dividend | — | — | — | — | — | |||||||||||||||
Total fixed charges (3) | 272,419 | 274,865 | 263,239 | 258,083 | 246,352 | |||||||||||||||
(Less): | ||||||||||||||||||||
Interest capitalized | 64,420 | 78,872 | 79,834 | 69,961 | 66,838 | |||||||||||||||
Preferred dividend | — | — | — | — | — | |||||||||||||||
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | — | — | — | 14,132 | — | |||||||||||||||
Earnings (4) | $ | 1,143,953 | $ | 1,317,888 | $ | 1,036,535 | $ | 936,776 | $ | 332,073 | ||||||||||
Ratio (4 divided by 3) | 4.20 | 4.79 | 3.94 | 3.63 | 1.35 |
Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 (1) | Year Ended December 31, 2013 (1) | ||||||||||||||||
Income from continuing operations before cumulative effect of change in accounting principle | $ | 876,801 | $ | 1,034,013 | $ | 743,216 | $ | 668,516 | $ | 57,827 | ||||||||||
(Plus): | ||||||||||||||||||||
Equity in income of unconsolidated entities, net of distributions received | 29,226 | 60,103 | 84,764 | 71,781 | 74,575 | |||||||||||||||
Amortization of capitalized interest (2) | 29,927 | 27,779 | 25,150 | 22,489 | 20,157 | |||||||||||||||
Earnings before fixed charges | 935,954 | 1,121,895 | 853,130 | 762,786 | 152,559 | |||||||||||||||
(Plus) Fixed charges: | ||||||||||||||||||||
Portion of rents representative of the interest factor | 8,338 | 8,483 | 7,790 | 7,504 | 7,112 | |||||||||||||||
Interest expense | 199,661 | 187,510 | 175,615 | 180,618 | 172,402 | |||||||||||||||
Interest capitalized | 64,420 | 78,872 | 79,834 | 69,961 | 66,838 | |||||||||||||||
Total fixed charges (3) | 272,419 | 274,865 | 263,239 | 258,083 | 246,352 | |||||||||||||||
(Less): | ||||||||||||||||||||
Interest capitalized | 64,420 | 78,872 | 79,834 | 69,961 | 66,838 | |||||||||||||||
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | — | — | — | 14,132 | — | |||||||||||||||
Earnings (4) | $ | 1,143,953 | $ | 1,317,888 | $ | 1,036,535 | $ | 936,776 | $ | 332,073 | ||||||||||
Ratio (4 divided by 3) | 4.20 | 4.79 | 3.94 | 3.63 | 1.35 |
(1) | The results of operations for 2013 through 2014 have been adjusted to remove the Company's earnings classified as discontinued operations. |
(2) | Represents an estimate of capitalized interest costs based on the Company’s established depreciation policy and an analysis of interest costs capitalized since 1998 (the year in which AvalonBay was formed). |
San Francisco Bay Partners II, Ltd. |
Bronxville West, LLC | |
Forestbroad LLC | |
Smithtown Galleria Associates Limited Partnership | |
Town Close Associates Limited Partnership |
1100 First DC, LLC | |
1865 Broadway For-Sale, LLC | |
1865 Broadway Retail, LLC | |
Alameda Financing, L.P. | |
AMP Apartments Subtenant, LLC | |
AMP Apartments, LLC | |
AMP Manager LLC | |
API Emeryville Parkside LLC | |
Archstone Bay Club Marina LP | |
Archstone Camargue III LLC | |
Archstone Carillon Point GP LLC | |
Archstone Carillon Point LP | |
Archstone Carillon Point REIT GP LLC | |
Archstone Carillon Point REIT LP | |
Archstone Communities LLC | |
Archstone DC Master Holdings LLC | |
Archstone DC One Holdings LLC | |
Archstone Del Mar Station LLC | |
Archstone Developer LLC | |
Archstone East 33rd Street GP LLC | |
Archstone East 33rd Street LP | |
Archstone East 33rd Street Master Lessee GP LLC | |
Archstone East 33rd Street Master Lessee LP | |
Archstone East 33rd Street REIT GP LLC | |
Archstone East 33rd Street REIT LP | |
Archstone East 39th Street (Nominee) GP LLC | |
Archstone East 39th Street (Nominee) LP | |
Archstone East 39th Street Holdings GP LLC | |
Archstone East 39th Street Holdings LP | |
Archstone East 39th Street Land LLC | |
Archstone East 39th Street Principal GP LLC | |
Archstone East 39th Street Principal LP |
Archstone Grosvenor Tower GP LLC | |
Archstone Grosvenor Tower LP | |
Archstone Grosvenor Tower REIT GP LLC | |
Archstone Grosvenor Tower REIT LP | |
Archstone HoldCO CM LLC | |
Archstone Huntington Beach College Park LLC | |
Archstone Huntington Beach Member LLC | |
Archstone Legacy Place GP LLC | |
Archstone Legacy Place LP | |
Archstone Legacy Place REIT GP LLC | |
Archstone Legacy Place REIT LP | |
Archstone Lexington Apartments GP LLC | |
Archstone Lexington Apartments LP | |
Archstone Lincoln Towers LLC | |
Archstone Long Beach GP LLC | |
Archstone Long Beach LP | |
Archstone Marina Bay GP LLC | |
Archstone Marina Bay LP | |
Archstone Marina Bay Nominee LP | |
Archstone Marina Bay REIT GP LLC | |
Archstone Marina Bay REIT LP | |
Archstone Master Property Holdings LLC | |
Archstone Memorial Heights Villages I LLC | |
Archstone Multifamily Partners AC Asset Manager LLC | |
Archstone Multifamily Partners AC CM LLC | |
Archstone Multifamily Partners AC Funding GP LLC | |
Archstone Multifamily Partners AC Funding LP | |
Archstone Multifamily Partners AC GP LLC | |
Archstone Multifamily Partners AC Investor I LLC | |
Archstone Multifamily Partners AC Investor II LLC | |
Archstone Multifamily Partners AC JV Asset Manager LLC | |
Archstone Multifamily Partners AC JV CM LLC | |
Archstone Multifamily Partners AC JV GP LLC | |
Archstone Multifamily Partners AC JV Investor I LLC | |
Archstone Multifamily Partners AC JV LP | |
Archstone Multifamily Partners AC LP | |
Archstone Multifamily Series II LLC | |
Archstone Multifamily Series III LLC | |
Archstone Multifamily Series IV LLC | |
Archstone North Braeswood GP LLC | |
Archstone North Braeswood LP | |
Archstone North Capitol Hill 2 GP LLC | |
Archstone North Capitol Hill 2 LP | |
Archstone North Capitol Hill GP LLC | |
Archstone North Capitol Hill LP | |
Archstone Northcreek LLC |
Archstone Oak Creek I LLC | |
Archstone Oak Creek II LLC | |
Archstone Oakwood Arlington LLC | |
Archstone Oakwood Toluca Hills LLC | |
Archstone Old Town Pasadena LLC | |
Archstone Parallel Residual JV 2, LLC | |
Archstone Parallel Residual JV, LLC | |
Archstone Parkland Gardens LLC | |
Archstone Property Holdings GP LLC | |
Archstone Property Holdings LLC | |
Archstone Redmond Campus LLC | |
Archstone Residual JV, LLC | |
Archstone San Bruno III LLC | |
Archstone San Bruno III-B LLC | |
Archstone San Mateo Holdings LLC | |
Archstone Smith Corporate Holdings LLC | |
Archstone Studio 4041 GP LLC | |
Archstone Studio 4041 LP | |
Archstone Studio 4041 REIT GP LLC | |
Archstone Studio 4041 REIT LP | |
Archstone Sunnyvale GP LLC | |
Archstone Sunnyvale LP | |
Archstone Sunnyvale REIT GP LLC | |
Archstone Sunnyvale REIT LP | |
Archstone Texas Land Holdings LLC | |
Archstone Thousand Oaks LLC | |
Archstone Trademark JV, LLC | |
Archstone Tysons Corner LLC | |
Archstone Venice GP LLC | |
Archstone Venice LP | |
Archstone Venice REIT GP LLC | |
Archstone Venice REIT LP | |
Archstone Westbury (Nominee) GP LLC | |
Archstone Westbury (Nominee) LP | |
Archstone Westbury GP LLC | |
Archstone Westbury Holdings GP LLC | |
Archstone Westbury Holdings LP | |
Archstone Westbury LP | |
Archstone Westbury Principal GP LLC | |
Archstone Westbury Principal LP | |
Archstone-Smith Unitholder Services LLC | |
Aria at Laurel Hill, LLC | |
Arlington Square Financing, LLC | |
ASN 50th Street LLC | |
ASN Bear Hill LLC | |
ASN Calabasas I LLC |
ASN Calabasas II LLC | |
ASN La Jolla Colony LLC | |
ASN Lake Mendota Investments LLC | |
ASN Long Beach LLC | |
ASN Los Feliz LLC | |
ASN Meadows at Russett I LLC | |
ASN Meadows at Russett II LLC | |
ASN Monument Park LLC | |
ASN Mountain View LLC | |
ASN Pasadena LLC | |
ASN Quincy LLC | |
ASN Redmond Lakeview LLC | |
ASN Redmond Park LLC | |
ASN San Jose LLC | |
ASN Tanforan Crossing I LLC | |
ASN Tanforan Crossing II LLC | |
ASN Thousand Oaks Plaza LLC | |
ASN Walnut Ridge LLC | |
ASN Warner Center LLC | |
ASN Woodland Hills East LLC | |
AVA Arts District, L.P. | |
AVA Capitol Hill, LLC | |
AVA Ninth, L.P. | |
Avalon 210 Wall, LLC | |
Avalon 55 Ninth, LLC | |
Avalon 850 Boca, LLC | |
Avalon Alderwood Phase I, LLC | |
Avalon Anaheim Stadium, L.P. | |
Avalon Arboretum, L.P. | |
Avalon Arlington Acquisition, LLC | |
Avalon at 318 I Street, LLC | |
Avalon at Ballston, LLC | |
Avalon at Diamond Heights, L.P. | |
Avalon at Florham Park, LLC | |
Avalon at Mission Bay III, L.P. | |
Avalon at Pacific Bay, L.P. | |
Avalon at Providence Park, LLC | |
Avalon at Stratford, LLC | |
Avalon Baker Ranch, L.P. | |
Avalon Ballard, LLC | |
Avalon Belltown, LLC | |
Avalon Brea Place, LLC | |
Avalon Brea Place Member, LLC | |
Avalon Brea Place (Phase I), LLC | |
Avalon Burlington, LLC | |
Avalon Chino Hills, L.P. |
Avalon Columbia Pike, LLC | |
Avalon Columbus Circle, LLC | |
Avalon Denver West, LLC | |
Avalon DownREIT V, L.P. | |
Avalon Dublin Station II, L.P. | |
Avalon Encino, L.P. | |
Avalon Exeter, LLC | |
Avalon Fair Lakes, LLC | |
Avalon Fairfax City, LLC | |
Avalon Fashion Valley, L.P. | |
Avalon Framingham, LLC | |
Avalon Glendora, L.P. | |
Avalon Gold, LLC | |
Avalon Great Neck, LLC | |
Avalon Green II, LLC | |
Avalon Grosvenor, L.P. | |
Avalon Harbor East, LLC | |
Avalon Hoboken, LLC | |
Avalon Hoboken TRS, LLC | |
Avalon Hoboken JV, LLC | |
Avalon Hollywood GP, LLC | |
Avalon Hollywood, L.P. | |
Avalon Hunt Valley, LLC | |
Avalon II Maryland Value II, L.P. | |
Avalon II Maryland Value III, L.P. | |
Avalon II Maryland Value IV, L.P. | |
Avalon II New Jersey Value II, L.P. | |
Avalon Irvine III, L.P. | |
Avalon Irvine, L.P. | |
Avalon Laurel, LLC | |
Avalon Marlborough, LLC | |
Avalon Milazzo, L.P. | |
Avalon Mission Oaks, L.P. | |
Avalon Monrovia, LLC | |
Avalon Morningside Fee, LLC | |
Avalon Morrison Park, L.P. | |
Avalon Mosaic II, LLC | |
Avalon Mosaic, LLC | |
Avalon Nashua, LLC | |
Avalon New Canaan, LLC | |
Avalon New Jersey Value II, LLC | |
Avalon Newport, L.P. | |
Avalon Norden Place, LLC | |
Avalon North Creek, LLC | |
Avalon Oak Road, L.P. | |
Avalon Oak Road GP, LLC |
Avalon Ocean Avenue, L.P. | |
Avalon Ossining, LLC | |
Avalon Overlake, LLC | |
Avalon Overlake Phase II, LLC | |
Avalon Park Crest, LLC | |
Avalon Piscataway, LLC | |
Avalon Potomac Yard, LLC | |
Avalon Princeton, LLC | |
Avalon Public Market, L.P. | |
Avalon Public Market Parcel C, LLC | |
Avalon Queen Anne, LLC | |
Avalon Rancho Vallecitos, L.P. | |
Avalon Riverview I, LLC | |
Avalon Riverview North, LLC | |
Avalon Rockwell & Lanes, LLC | |
Avalon Roseland, LLC | |
Avalon Run, LLC | |
Avalon San Dimas, L.P. | |
Avalon Shelton III, LLC | |
Avalon Shipyard, LLC | |
Avalon Somers, LLC | |
Avalon Stuart, LLC | |
Avalon Studio 77, L.P. | |
Avalon Teaneck, LLC | |
Avalon Towers Bellevue, LLC | |
Avalon Towson, LLC | |
Avalon Union City, L.P. | |
Avalon University District, LLC | |
Avalon Upper Falls Limited Partnership | |
Avalon Upper Falls, LLC | |
Avalon Villa Bonita, L.P. | |
Avalon Villa San Dimas, L.P. | |
Avalon Vista, L.P. | |
Avalon Walnut Creek II, L.P. | |
Avalon Walnut Creek II GP, LLC | |
Avalon Watch, LLC | |
Avalon West Chelsea, LLC | |
Avalon West Hollywood, L.P. | |
Avalon West Long Branch, LLC | |
Avalon White Plains II, LLC | |
Avalon Willoughby West, LLC | |
Avalon Wilshire, L.P. | |
Avalon Winbrook Redevelopment, LLC | |
Avalon Woodland Hills, L.P. | |
Avalon WP I, LLC | |
Avalon WP II, LLC |
Avalon WP III, LLC | |
Avalon WP IV, LLC | |
Avalon WP V, LLC | |
Avalon WP VI, LLC | |
Avalon Yonkers ATI Site, LLC | |
Avalon Yonkers Sun Sites, LLC | |
AvalonBay Capital Management II, LLC | |
AvalonBay Fund II Subsidiary GP, LLC | |
AvalonBay Trade Zone Village, LLC | |
AvalonBay Value Added Fund II Feeder, L.P. | |
AvalonBay Value Added Fund II, L.P. | |
AvalonBay Value Added REIT II, L.P. | |
AVB 1865 Broadway, LLC | |
AVB Albemarle, LLC | |
AVB Balboa, LLC | |
AVB Bloomfield Station Urban Renewal, LLC | |
AVB Boonton Bondholder, LLC | |
AVB Brandywine Member, LLC | |
AVB Broadway Developer, LLC | |
AVB Broadway Member, LLC | |
AVB Consulate, LLC | |
AVB Del Rey, L.P. | |
AVB Glover Park, LLC | |
AVB La Mesa GP LLC | |
AVB La Mesa II GP LLC | |
AVB La Mesa II LP | |
AVB La Mesa LP | |
AVB Legacy DownREIT, LLC | |
AVB Manager II, LLC | |
AVB Maple Leaf Apartments GP, LLC | |
AVB Maple Leaf Apartments Limited Partnership | |
AVB Maple Leaf REIT, LLC | |
AVB Market Common, LLC | |
AVB NP II JV GP, LLC | |
AVB NP II JV Investor, LLC | |
AVB Opera Warehouse GP, LLC | |
AVB Opera Warehouse TRS, LLC | |
AVB Opera Warehouse, L.P. | |
AVB Princeton Homes, LLC | |
AVB Residual Parallel II, LLC | |
AVB Santa Monica on Main GP LLC | |
AVB Santa Monica on Main LP | |
AVB Simi Valley GP LLC | |
AVB Simi Valley LP | |
AVB Southwest Berkeley GP LLC | |
AVB Southwest Berkeley LP |
AVB Statesman, LLC | |
AVB Studio City GP LLC | |
AVB Studio City III-A GP LLC | |
AVB Studio City III-A LP | |
AVB Studio City III-B GP LLC | |
AVB Studio City III-B LP | |
AVB Studio City III-C GP LLC | |
AVB Studio City III-C LP | |
AVB Studio City LP | |
AVB Trademark, LLC | |
AVB Tunlaw Gardens, LLC | |
AVB Walnut Creek GP LLC | |
AVB Walnut Creek LP | |
AVB Walnut Creek Station GP LLC | |
AVB Walnut Creek Station LP | |
AVB Willow Glen GP LLC | |
AVB Willow Glen LP | |
Bay Countrybrook L.P. | |
Bay Pacific Northwest, L.P. | |
Bellevue Financing, LLC | |
Bloomingdale Urban Renewal, LLC | |
Boonton Urban Renewal, LLC | |
Bowery Place I Low-Income Operator, LLC | |
Bowery Place I Manager, LLC | |
BPR Sudbury Development LLC | |
Briarwood Borrower, LLLP | |
Capital Mezz LLC | |
CG-N Affordable LLC | |
CG-N Affordable Manager LLC | |
CG-S Affordable LLC | |
CG-S Affordable Manager LLC | |
Clinton Green North, LLC | |
Clinton Green South, LLC | |
Clinton Green Theatre, LLC | |
Courthouse Hill LLC | |
Crescent Financing, LLC | |
Crest Financing, L.P. | |
CVP II, LLC | |
CVP III, LLC | |
Darien Financing, LLC | |
Dermont Clinton Green, LLC | |
Eaves Artesia, L.P. | |
Eaves Burlington, LLC | |
Edgewater Financing, LLC | |
El Paseo Drive Land LLC | |
Fairfax Towers Financing, L.P. |
Garden City Apartments, LLC | |
Garden City SF, LLC | |
Garden City Townhomes, LLC | |
Glen Cove Development LLC | |
Glen Cove II Development LLC | |
Hayes Valley, L.P. | |
La Brea Gateway LLC | |
Lake Mendota Investments LLC | |
Laurel Hill Private Sewer Treatment Facility, LLC | |
Legacy Holdings JV, LLC | |
Lexford Properties, L.P. | |
Maplewood Urban Renewal, LLC | |
Mark Pasadena Financing, L.P. | |
Market Common Apartment Retail, LLC | |
Mission Bay North Financing, L.P. | |
MVP I, LLC | |
Newcastle Construction Management, LLC | |
Newcastle For Sale, LLC | |
Newcastle Joint Venture, LLC | |
Newcastle Multifamily Rental, LLC | |
North Bergen Residential Urban Renewal, LLC | |
North Bergen Retail Urban Renewal, LLC | |
North Point Apartments GP LLC | |
North Point Apartments Limited Partnership | |
North Point Holdings GP LLC | |
North Point Holdings LP | |
North Point II Apartments, LLC | |
North Point II JV, LP | |
North Point II REIT, LLC | |
North Point REIT LLC | |
Norwalk Retail, LLC | |
OEC Holdings LLC | |
PHVP I GP, LLC | |
PHVP I, LP | |
Pleasant Hill Manager, LLC | |
Pleasant Hill Transit Village Associates LLC | |
Quincy Avalon, LLC | |
Reservoir Community Partners, LLC | |
Ridgefield Park Urban Renewal, LLC | |
Roselle Park Urban Renewal, LLC | |
Roselle Park VP, LLC | |
Run East II Financing, LLC | |
San Bruno III Financing, L.P. | |
Saugus Avalon, LLC | |
Shady Grove Road Financing, LLC | |
Sheepshead Bay Road Lender, LLC |
Sheepshead Bay Road Manager, LLC | |
Sheepshead Bay Road Owner, LLC | |
Sheepshead Bay Road Partner, LLC | |
Sheepshead Bay Road PM, LLC | |
Silicon Valley Financing, LLC | |
Smith Property Holdings Ballston Place L.L.C. | |
Smith Property Holdings Consulate L.L.C. | |
Smith Property Holdings Crystal Towers L.P. | |
Smith Property Holdings Five (D.C.) L.P. | |
Smith Property Holdings One (D.C.) L.P. | |
Smith Property Holdings Reston Landing L.L.C. | |
Smith Property Holdings Seven L.P. | |
Sudbury Land Avalon, LLC | |
Tysons West, LLC | |
Union Urban Renewal, LLC | |
Valet Waste Holdings, Inc. | |
Wesmont Station Licensee, LLC | |
Wesmont Station Residential I Urban Renewal, LLC | |
Wesmont Station Residential II Urban Renewal, LLC | |
Wesmont Station Retail I Urban Renewal, LLC | |
Wesmont Station Retail II Urban Renewal, LLC | |
West Chelsea Transaction, LLC | |
West Windsor Urban Renewal, LLC | |
Wharton Urban Renewal, LLC | |
Woodland Park REIT Holdings GP LLC | |
Woodland Park REIT Holdings LP | |
Woodland Park REIT LLC | |
WP Apartments GP LLC | |
WP Apartments LP |
4100 Massachusetts Avenue Associates, L.P. |
Archstone | |
Archstone Inc. | |
Archstone Multifamily Series I Trust | |
AVA Arts District GP, Inc. | |
Avalon 4100 Massachusetts Avenue, Inc. | |
Avalon Acton, Inc. | |
Avalon at Chestnut Hill, Inc. | |
Avalon at Great Meadow, Inc. | |
Avalon at St. Clare, Inc. | |
Avalon BFG, Inc. | |
Avalon Blue Hills, Inc. |
Avalon Canton, Inc. | |
Avalon Chase Glen, Inc. | |
Avalon Chase Grove, Inc. | |
Avalon Chino Hills Manager, Inc. | |
Avalon Cohasset, Inc. | |
Avalon Collateral, Inc. | |
Avalon Commons, Inc. | |
Avalon DownREIT V, Inc. | |
Avalon Fairway Hills I Associates | |
Avalon Fairway Hills II Associates | |
Avalon Fairway II, Inc. | |
Avalon Glendora Manager, Inc. | |
Avalon Grosvenor LLC | |
Avalon Hayes Valley Manager, Inc. | |
Avalon Hingham, Inc. | |
Avalon Hingham PM, Inc. | |
Avalon Mission Oaks Manager, Inc. | |
Avalon Natick, Inc. | |
Avalon Oaks, Inc. | |
Avalon Oaks West, Inc. | |
Avalon Promenade, Inc. | |
Avalon Public Market GP, Inc. | |
Avalon Sharon, Inc. | |
Avalon Studio 77 GP, Inc. | |
Avalon Symphony Woods, Inc. | |
Avalon Twinbrook Station, Inc. | |
Avalon Upper Falls Limited Dividend Corporation | |
Avalon West Hollywood Manager, Inc. | |
AvalonBay Assembly Row, Inc. | |
AvalonBay Capital Management, Inc. | |
AvalonBay Construction Services, Inc. | |
AvalonBay Grosvenor, Inc. | |
AvalonBay NYC Development, Inc. | |
AvalonBay Orchards, Inc. | |
AvalonBay Traville, LLC | |
AVB Development Transactions, Inc. | |
AVB Northborough, Inc. | |
AVB Realty Management Services, Inc. | |
AVB Service Provider, Inc. | |
AVB Tysons Development, Inc. | |
Bay Asset Group, Inc. | |
Bay Development Partners, Inc. | |
Bay GP, Inc. | |
Brandywine Apartments of Maryland, LLC | |
California Multiple Financing, Inc. | |
California San Bruno III Financing, Inc. |
Easton Avalon, Inc. | |
Georgia Avenue, Inc. | |
Hingham Shipyard Avalon II, Inc. | |
JP Construction in Milford, Inc. | |
Juanita Construction, Inc. | |
Lexington Ridge-Avalon, Inc. | |
Norwood Avalon, Inc. | |
Pomorum Holdings, Inc. | |
Smith Realty Company | |
Sudbury Avalon, Inc. |
855 Broadway Licensee, LLC | |
AvalonBay BFG Limited Partnership | |
Hingham Shipyard East Property Owners Association, Inc. | |
Smith Property Holdings Cronin’s Landing L.P. |
Town Cove Jersey City Urban Renewal, Inc. | |
Town Run Associates |
Avalon Huntington Former S Corp |
Hillwood Square Mutual Association | |
Pomorum Renters Insurance Agency, LLC |
Pomorum Insurance Company Ltd. (Bermuda) | |
Pomorum Renters Insurance Company, Ltd. (Bermuda) |
(1) | Registration Statement (Forms S-3 No. 333-87063 and No. 333-107413) of AvalonBay Communities, Inc., and |
(2) | Registration Statement (Forms S-8 No. 333-216221, No. 333-161258, and No. 333-16837) pertaining to the Employees' Savings Plan of AvalonBay Communities, Inc.; |
1. | I have reviewed this annual report on Form 10-K of AvalonBay Communities, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: February 23, 2018 | ||
/s/ TIMOTHY J. NAUGHTON | ||
Timothy J. Naughton | ||
Chairman, Chief Executive Officer and President |
1. | I have reviewed this annual report on Form 10-K of AvalonBay Communities, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: February 23, 2018 | ||
/s/ KEVIN P. O’SHEA | ||
Kevin P. O’Shea | ||
Chief Financial Officer |
Date: February 23, 2018 | ||
/s/ TIMOTHY J. NAUGHTON | ||
Timothy J. Naughton | ||
Chairman, Chief Executive Officer and President |
/s/ KEVIN P. O’SHEA | ||
Kevin P. O’Shea | ||
Chief Financial Officer |
Document and Entity Information - USD ($) |
12 Months Ended | ||
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Dec. 31, 2017 |
Jan. 31, 2018 |
Jun. 30, 2017 |
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Document and Entity Information | |||
Entity Registrant Name | AVALONBAY COMMUNITIES INC | ||
Entity Central Index Key | 0000915912 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 138,095,504 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 26,425,741,640 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 280,000,000 | 280,000,000 |
Common stock, shares issued | 138,094,154 | 137,330,904 |
Common stock, shares outstanding | 138,094,154 | 137,330,904 |
Organization, Basis of Presentation, and Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Basis of Presentation, and Significant Accounting Policies | Organization, Basis of Presentation and Significant Accounting Policies Organization and Basis of Presentation AvalonBay Communities, Inc. (the “Company,” which term, unless the context otherwise requires, refers to AvalonBay Communities, Inc. together with its subsidiaries), is a Maryland corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes under the Internal Revenue Code of 1986 (the “Code”). The Company focuses on the development, redevelopment, acquisition, ownership and operation of multifamily communities primarily in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. At December 31, 2017, the Company owned or held a direct or indirect ownership interest in 267 operating apartment communities containing 77,614 apartment homes in 12 states and the District of Columbia, of which nine communities containing 3,752 apartment homes were under redevelopment. In addition, the Company owned or held a direct or indirect ownership interest in 21 communities under development that are expected to contain an aggregate of 6,544 apartment homes (unaudited) when completed. The Company also owned or held a direct or indirect ownership interest in land or rights to land in which the Company expects to develop an additional 29 communities that, if developed as expected, will contain an estimated 9,496 apartment homes (unaudited). Capitalized terms used without definition have meanings provided elsewhere in this Form 10-K. Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, certain joint venture partnerships, subsidiary partnerships structured as DownREITs and any variable interest entities that qualify for consolidation. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for joint venture entities and subsidiary partnerships in accordance with the consolidation guidance. The Company evaluates the partnership of each joint venture entity and determines first whether to follow the variable interest entity (“VIE”) or the voting interest entity (“VOE”) model. Once the appropriate consolidation model is identified, the Company then evaluates whether it should consolidate the venture. Under the VIE model, the Company consolidates an investment when it has control to direct the activities of the venture and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the VOE model, the Company consolidates an investment when 1) it controls the investment through ownership of a majority voting interest if the investment is not a limited partnership or 2) it controls the investment through its ability to remove the other partners in the investment, at its discretion, when the investment is a limited partnership. The Company generally uses the equity method of accounting for its investment in joint ventures, under all other potential scenarios, including where the Company holds a noncontrolling limited partner interest in a joint venture. Any investment in excess of the Company's cost basis at acquisition or formation of an equity method venture, will be recorded as a component of the Company's investment in the joint venture and recognized over the life of the underlying fixed assets of the venture as a reduction to its equity in income from the venture. Investments in which the Company has little or no influence are accounted for using the cost method. Revenue and Gain Recognition Rental income related to the Company’s residential and retail leases is recognized on an accrual basis when due from residents and/or retail tenants, as required by the accounting guidance applicable to leases, which provides guidance on classification and recognition. In accordance with the Company's standard residential lease terms, rental payments are generally due on a monthly basis. Any cash concessions given at the inception of the lease are amortized over the approximate life of the lease, which is generally one year. The Company records a charge to income for outstanding receivables greater than 90 days past due as a component of operating expenses, excluding property taxes on the accompanying Consolidated Statements of Comprehensive Income. The Company will adopt ASU 2014-09, Revenue from Contracts with Customers and ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets, as of January 1, 2018 using the modified retrospective approach, applying the provisions of the new standards to contracts that are not completed as of the date of adoption. Under the new standards, revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. The majority of the Company’s revenue is derived from residential and retail rental income and other lease income, which are scoped out from this standard and included in the current lease accounting framework, and will be accounted for under ASU 2016-02, Leases, discussed under Recently Issued and Adopted Accounting Standards below. Revenue streams that are in the scope of the new standards include:
Due to the nature and timing of the Company’s identified revenue streams and existing open contracts as of December 31, 2017, the Company does not anticipate the adoption of the new standards will have a material impact on its financial position or results of operations. Real Estate Operating real estate assets are stated at cost and consist of land and improvements, buildings and improvements, furniture, fixtures and equipment, and other costs incurred during their development, redevelopment and acquisition. Significant expenditures which improve or extend the life of an existing asset and that will benefit the Company for periods greater than a year, are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. The Company generally expenses purchases of personal property made for replacement purposes. Project costs related to the development, construction and redevelopment of real estate projects (including interest and related loan fees, property taxes and other direct costs) are capitalized as a cost of the project. Indirect project costs that relate to several projects are capitalized and allocated to the projects to which they relate. Indirect costs not clearly related to development, construction and redevelopment activity are expensed as incurred. For development, capitalization (i) begins when the Company has determined that development of the future asset is probable, (ii) can be suspended if there is no current development activity underway, but future development is still probable and (iii) ends when the asset, or a portion of an asset, is delivered and is ready for its intended use, or the Company's intended use changes such that capitalization is no longer appropriate. For land parcels improved with operating real estate, for which the Company intends to pursue development, the Company generally manages the current improvements until such time as all tenant obligations have been satisfied or eliminated through negotiation, and construction of new apartment communities is ready to begin. Revenue from incidental operations received from the current improvements on land parcels in excess of any incremental costs are recorded as a reduction of total capitalized costs of the respective Development Right and not as part of net income. Incidental operating costs in excess of incidental operating income are expensed in the period incurred. For redevelopment efforts, the Company capitalizes costs either (i) in advance of taking homes out of service when significant renovation of the common area has begun until the redevelopment is completed, or (ii) when an apartment home is taken out of service for redevelopment until the redevelopment is completed and the apartment home is available for a new resident. Rental income and operating costs incurred during the initial lease-up or post-redevelopment lease-up period are recognized in earnings as incurred. The Company defers external costs associated with originating new leases, recognizing the impact of these costs in earnings over the term of the lease. The adoption of ASU 2017-01 on October 1, 2016, impacted the Company's accounting framework for the acquisition of operating communities. Prior to adoption, the acquisition of an operating community was viewed as an acquisition of a business, and the Company identified and recorded each asset acquired and liability assumed in such transaction at its estimated fair value at the date of acquisition, and expensed all costs incurred related to acquisitions of operating communities. Subsequent to adoption of ASU 2017-01 on October 1, 2016, the Company assesses each acquisition of an operating community to determine if it meets the definition of a business or if it qualifies as an asset acquisition. The Company generally views acquisitions of individual operating communities as asset acquisitions, and results in the capitalization of acquisition costs, and the allocation of purchase price to the assets acquired and liabilities assumed, based on the relative fair value of the respective assets and liabilities. The purchase price allocation to tangible assets, such as land and improvements, buildings and improvements, and furniture, fixtures and equipment, and the in-place lease intangible assets, is as reflected in real estate assets and depreciated over their estimated useful lives. Any purchase price allocation to intangible assets, other than in-place lease intangibles, is included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets and amortized over the term of the acquired intangible asset. The Company values land based on a market approach, looking to recent sales of similar properties, adjusting for differences due to location, the state of entitlement as well as the shape and size of the parcel. Improvements to land are valued using a replacement cost approach and consider the structures and amenities included for the communities. The approach applied industry standard replacement costs adjusted for geographic specific considerations and reduced by estimated depreciation. The value for furniture, fixtures and equipment is also determined based on a replacement cost approach, considering costs for both items in the apartment homes as well as common areas and was adjusted for estimated depreciation. The fair value of buildings acquired is estimated using the replacement cost approach, assuming the buildings were vacant at acquisition. The replacement cost approach considers the composition of structures acquired, adjusted for an estimate of depreciation. The estimate of depreciation is made considering industry standard information, depreciation curves for the identified asset classes and estimated useful life of the acquired property. The value of the acquired lease-related intangibles considered the estimated cost of leasing the apartment homes as if the acquired building(s) were vacant, as well as the value of the current leases relative to market-rate leases. The in-place lease value is determined using an average total lease-up time, the number of apartment homes and net revenues generated during the lease-up time. The lease-up period for an apartment community is assumed to be 12 months to achieve stabilized occupancy. Net revenues use market rent considering actual leasing and industry rental rate data. The value of current leases relative to a market-rate lease is based on market rents obtained for market comparables, and considered a market derived discount rate. Given the heterogeneous nature of multifamily real estate, the fair values for the land, debt, real estate assets and in-place leases incorporated significant unobservable inputs and therefore are considered to be Level 3 prices within the fair value hierarchy. Consideration for acquisitions is typically in the form of cash unless otherwise disclosed. Depreciation is calculated on buildings and improvements using the straight-line method over their estimated useful lives, which range from seven to 30 years. Furniture, fixtures and equipment are generally depreciated using the straight-line method over their estimated useful lives, which range from three years (primarily computer-related equipment) to seven years. Income Taxes The Company elected to be treated as a REIT for U.S. federal income tax purposes for its tax year ended December 31, 1994 and has not revoked such election. A REIT is a corporate entity which holds real estate interests and can deduct from its federally taxable income qualifying dividends it pays if it meets a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its adjusted taxable income to stockholders. Therefore, as a REIT, the Company generally will not be subject to corporate level federal income tax on its taxable income if it annually distributes 100% of its taxable income to its stockholders. The states in which the Company operates have similar tax provisions which recognize the Company as a REIT for state income tax purposes. Management believes that all such conditions for the exemption from income taxes on ordinary income have been or will be met for the periods presented. Accordingly, no provision for federal and state income taxes has been made. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal corporate income taxes at regular corporate rates and may not be able to qualify as a corporate REIT for four subsequent taxable years. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed taxable income and in certain other instances. The Company did not incur any charges or receive refunds of excise taxes related to the years ended December 31, 2017, 2016 and 2015. In addition, taxable income from non-REIT activities performed through taxable REIT subsidiaries (“TRS”) is subject to federal, state and local income taxes. The Company incurred income tax expense of $141,000, $305,000 and $1,483,000 in 2017, 2016 and 2015, respectively, associated primarily with activities transacted through a TRS. As of December 31, 2017 and 2016, the Company did not have any unrecognized tax benefits. The Company does not believe that there will be any material changes in its unrecognized tax positions over the next 12 months. The Company is subject to examination by the respective taxing authorities for the tax years 2014 through 2016. On December 22, 2017, H.R. 1, the Tax Cuts and Jobs Act (the “TCJA”), was enacted. The TCJA makes major changes to the Code, including lowering the statutory U.S. federal income tax rate from 35% to 21% effective January 1, 2018. The Company has completed its assessment of the Act and does not believe it will have a material impact on its financial position or results of operations. The following reconciles net income attributable to common stockholders to taxable net income for the years ended December 31, 2017, 2016 and 2015 (unaudited, dollars in thousands):
The following summarizes the tax components of the Company's common dividends declared for the years ended December 31, 2017, 2016 and 2015 (unaudited):
Deferred Financing Costs Deferred financing costs include fees and other expenditures necessary to obtain debt financing and are amortized on a straight-line basis, which approximates the effective interest method, over the shorter of the term of the loan or the related credit enhancement facility, if applicable. Unamortized financing costs are charged to earnings when debt is retired before the maturity date. Accumulated amortization of deferred financing costs related to unsecured notes was $16,984,000 and $14,008,000 as of December 31, 2017 and 2016, respectively, and related to mortgage notes payable was $4,991,000 and $10,562,000 as of December 31, 2017 and 2016, respectively. Deferred financing costs, except for costs associated with line-of-credit arrangements, are presented as a direct deduction from the related debt liability. Accumulated amortization of deferred financing costs related to the Company's Credit Facility was $8,299,000 and $6,490,000 as of December 31, 2017 and 2016, respectively, and was included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets. Cash, Cash Equivalents and Cash in Escrow Cash and cash equivalents include all cash and liquid investments with an original maturity of three months or less from the date acquired. Cash in escrow includes principal reserve funds that are restricted for the repayment of specified secured financing. The majority of the Company's cash, cash equivalents and cash in escrow are held at major commercial banks. Comprehensive Income Comprehensive income, as reflected on the Consolidated Statements of Comprehensive Income, is defined as all changes in equity during each period except for those resulting from investments by or distributions to shareholders. Accumulated other comprehensive loss, as reflected on the Consolidated Statements of Equity, reflects the effective portion of the cumulative changes in the fair value of derivatives in qualifying cash flow hedge relationships. Earnings per Common Share Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common shareholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per share (“EPS”). Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. The Company's earnings per common share are determined as follows (dollars in thousands, except per share data):
All options to purchase shares of common stock outstanding as of December 31, 2017, 2016 and 2015 are included in the computation of diluted earnings per share. As discussed under "Recently Issued and Adopted Accounting Standards," as of January 1, 2017, the Company adopted the provisions of ASU 2016-09 using the modified retrospective approach to recognize forfeitures as they occur. Prior to the adoption of this standard, the Company was required to estimate the forfeiture of stock options and recognized compensation cost net of the estimated forfeitures. The estimated forfeitures included in compensation cost were adjusted to reflect actual forfeitures at the end of the vesting period. This change in accounting principle had no impact on the Company's financial position and no adjustment to retained earnings or the Company's diluted shares outstanding, as prescribed under the modified retrospective approach. Refer to "Change in Accounting Principle" for discussion of the impact to the accompanying Consolidated Statements of Cash Flows. Abandoned Pursuit Costs and Impairment of Long-Lived Assets The Company capitalizes pre-development costs incurred in pursuit of new development opportunities for which the Company currently believes future development is probable (“Development Rights”). Future development of these Development Rights is dependent upon various factors, including zoning and regulatory approval, rental market conditions, construction costs and the availability of capital. Initial pre-development costs incurred for pursuits for which future development is not yet considered probable are expensed as incurred. In addition, if the status of a Development Right changes, making future development by the Company no longer probable, any capitalized pre-development costs are expensed. The Company expensed costs related to the abandonment of Development Rights, as well as costs incurred in pursuing the acquisition or disposition of assets for which such acquisition and disposition activity did not occur, in the amounts of $2,370,000, $4,183,000 and $3,016,000 during the years ended December 31, 2017, 2016 and 2015, respectively. These costs are included in expensed acquisition, development and other pursuit costs, net of recoveries on the accompanying Consolidated Statements of Comprehensive Income. Abandoned pursuit costs can vary greatly, and the costs incurred in any given period may be significantly different in future periods. The Company evaluates its real estate and other long-lived assets for impairment when potential indicators of impairment exist. Such assets are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is not recoverable. If events or circumstances indicate that the carrying amount of a property or long-lived asset may not be recoverable, the Company assesses its recoverability by comparing the carrying amount of the property or long-lived asset to its estimated undiscounted future cash flows. If the carrying amount exceeds the aggregate undiscounted future cash flows, the Company recognizes an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property or long-lived asset. Based on periodic tests of recoverability of long-lived assets, for the years ended December 31, 2017, 2016 and 2015, the Company did not recognize any impairment losses for wholly-owned operating real estate assets, and did not record any impairment losses other than those related to the impairment on land held for investment and casualty gains and losses from property damage as discussed below. The Company assesses its portfolio of land held for both development and investment for impairment if the intent of the Company changes with respect to either the development of, or the expected holding period for, the land. During the year ended December 31, 2017, the Company recognized an impairment charge of $9,350,000 related to a land parcel the Company had acquired for development in 2004 and sold during 2017. During the year ended December 31, 2016, the Company recognized $10,500,000 of aggregate impairment charges related to three ancillary land parcels for which the Company has either sold or intends to sell. These charges were determined as the excess of the Company's carrying basis over the expected sales price for each parcel, and is included in casualty and impairment loss (gain), net on the accompanying Consolidated Statements of Comprehensive Income. The Company did not recognize any material impairment charges on its investment in land during the year ended December 31, 2015. The Company evaluates its unconsolidated investments for other than temporary impairment, considering both the extent and amount by which the carrying value of the investment exceeds the fair value, and the Company’s intent and ability to hold the investment to recover its carrying value. The Company also evaluates its proportionate share of any impairment of assets held by unconsolidated investments. There were no other than temporary impairment losses recognized by any of the Company's investments in unconsolidated real estate entities during the years ended December 31, 2017, 2016 or 2015. Casualty Gains and Losses In February 2017, a fire occurred at the Company's Avalon Maplewood Development Community, located in Maplewood, NJ, which was under construction and not yet occupied. The Company has commenced reconstruction of the damaged and destroyed portions of the community. See Note 7, “Commitments and Contingencies,” for additional discussion of the related casualty loss. During the year ended December 31, 2017, the Company recorded a casualty loss of $19,481,000 composed of a charge of $16,361,000 to write-off the net book value of the fixed assets destroyed in the Maplewood casualty loss and $3,120,000 for demolition and additional incident expenses. The casualty loss was partially offset by $17,143,000 of expected third-party property damage insurance proceeds. The net casualty loss of $2,338,000 for the year ended December 31, 2017 is included in casualty and impairment loss (gain), net on the accompanying Consolidated Statements of Comprehensive Income. During the year ended December 31, 2017, the Company reached a final insurance settlement for the property damage and lost income for the Maplewood casualty loss of $19,696,000, after self-insurance and deductibles, of which the Company recognized $3,495,000 as business interruption insurance proceeds. In January 2015, a fire occurred at the Company's Avalon at Edgewater apartment community located in Edgewater, NJ. Edgewater consisted of two residential buildings. One building, containing 240 apartment homes, was destroyed. The second building, containing 168 apartment homes, suffered minimal damage and has been repaired. See Note 7, “Commitments and Contingencies,” for discussion of the related legal matters. During the year ended December 31, 2016, the Company reached a final insurance settlement for the Company's property damage and lost income for the Edgewater casualty loss, for which it received aggregate insurance proceeds for Edgewater of $73,150,000, after self-insurance and deductibles, as discussed below. During the year ended December 31, 2015, the Company received $44,142,000 in insurance proceeds, which were partially offset by casualty charges of $21,844,000 to write off the net book value of the building destroyed by the fire at Edgewater, and $6,760,000 to record demolition and additional incident expenses, resulting in a net casualty gain of $15,538,000. During the year ended December 31, 2016, the Company received the final $29,008,000 of insurance proceeds, of which $8,702,000 was recognized as an additional net casualty gain and $20,306,000 as business interruption insurance proceeds. The Company reported the net casualty gains from each of the respective years as casualty and impairment loss (gain), net on the accompanying Consolidated Statements of Comprehensive Income, and reported the business interruption insurance proceeds as a component of rental and other income on the accompanying Consolidated Statements of Comprehensive Income. During the year ended December 31, 2015, several of the Company's communities in its Northeast markets incurred property and casualty damages from severe winter storms, for which the Company recorded an impairment due to a casualty loss of $4,195,000. During the year ended December 31, 2016, the Company recorded a net casualty gain related to the 2015 severe winter storms of $5,732,000, which is comprised of $8,493,000 in third-party insurance proceeds received, partially offset by incremental costs of $2,761,000. These amounts are included in casualty and impairment loss (gain), net on the accompanying Consolidated Statements of Comprehensive Income. A casualty loss may also result in lost operating income from one or more communities that is covered by the Company’s business interruption insurance policies. The Company recognizes income for amounts received under its business interruption insurance policies as a component of rental and other income in the Consolidated Statements of Comprehensive Income. Revenue is recognized upon resolution of all contingencies related to the receipt, typically upon written confirmation by the insurer or receipt of the actual proceeds. The Company recognized $3,498,000, $20,564,000 and $1,509,000 in income related business interruption insurance proceeds for the years ended December 31, 2017, 2016 and 2015, respectively. Assets Held for Sale and Discontinued Operations The Company presents the assets and liabilities of any communities which have been sold, or otherwise qualify as held for sale, separately in the Consolidated Balance Sheets. In addition, the results of operations for those assets that meet the definition of discontinued operations are presented as such in the accompanying Consolidated Statements of Comprehensive Income. Real estate assets held for sale are measured at the lower of the carrying amount or the fair value less the cost to sell. Both the real estate assets and corresponding liabilities are presented separately in the accompanying Consolidated Balance Sheets. Upon the classification of an asset as held for sale, no further depreciation is recorded. Disposals representing a strategic shift in operations (e.g., a disposal of a major geographic area, a major line of business or a major equity method investment) will be presented as discontinued operations, and for those assets qualifying for classification as discontinued operations, the specific components of net income presented as discontinued operations include net operating income, depreciation expense and interest expense, net. For periods prior to the asset qualifying for discontinued operations, the Company reclassifies the results of operations to discontinued operations. In addition, the net gain or loss (including any impairment loss) on the eventual disposal of assets held for sale will be presented as discontinued operations when recognized. A change in presentation for held for sale or discontinued operations has no impact on the Company's financial condition or results of operations. The Company combines the operating, investing and financing portions of cash flows attributable to discontinued operations with the respective cash flows from continuing operations on the accompanying Consolidated Statements of Cash Flows. The Company had no real estate that qualified as held for sale presentation at December 31, 2017. Redeemable Noncontrolling Interests Redeemable noncontrolling interests are comprised of potential future obligations of the Company, which allow the investors holding the noncontrolling interest to require the Company to purchase their interest. The Company classifies obligations under the redeemable noncontrolling interests at fair value, with a corresponding offset for changes in the fair value recorded in accumulated earnings less dividends. Reductions in fair value are recorded only to the extent that the Company has previously recorded increases in fair value above the redeemable noncontrolling interest's initial basis. The redeemable noncontrolling interests are presented outside of permanent equity as settlement in shares of the Company's common stock, where permitted, may not be within the Company's control. The nature and valuation of the Company's redeemable noncontrolling interests are discussed further in Note 11, “Fair Value.” Derivative Instruments and Hedging Activities The Company enters into interest rate swap and interest rate cap agreements (collectively, “Hedging Derivatives”) for interest rate risk management purposes and in conjunction with certain variable rate secured debt to satisfy lender requirements. The Company does not enter into Hedging Derivative transactions for trading or other speculative purposes. The Company assesses the effectiveness of qualifying cash flow and fair value hedges, both at inception and on an on-going basis. Hedge ineffectiveness is reported as a component of general and administrative expenses. The fair values of Hedging Derivatives that are in an asset position are recorded in prepaid expenses and other assets. The fair value of Hedging Derivatives that are in a liability position are included in accrued expenses and other liabilities. The Company does not present or disclose the fair value of Hedging Derivatives on a net basis. Fair value changes for derivatives that are not in qualifying hedge relationships are reported as a component of interest expense, net. For the Hedging Derivative positions that the Company has determined qualify as effective cash flow hedges, the Company has recorded the effective portion of cumulative changes in the fair value of Hedging Derivatives in other comprehensive income (loss). Amounts recorded in other comprehensive income (loss) will be reclassified into earnings in the periods in which earnings are affected by the hedged cash flow. The effective portion of the change in fair value of the Hedging Derivatives that the Company has determined qualified as effective fair value hedges is reported as an adjustment to the carrying amount of the corresponding debt being hedged. See Note 11, “Fair Value,” for further discussion of derivative financial instruments. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to amounts in prior years' notes to financial statements to conform to current year presentations as a result of changes in held for sale classification and disposition activity. Recently Issued and Adopted Accounting Standards In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU expands hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. This update also simplifies the application of hedge accounting guidance and eases the administrative burden of hedge documentation requirements and assessing hedge effectiveness. The guidance will be effective in the first quarter of 2019, allows for early adoption, and will be applied prospectively at adoption. The Company will adopt the guidance as of January 1, 2018 and does not believe it will have a material effect on the Company’s financial position or results of operations. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This ASU (i) clarifies the scope of the nonfinancial asset guidance and the derecognition of certain businesses and nonprofit activities, (ii) eliminates the exception in the financial asset guidance for transfers of investments (including equity method investments) in real estate entities and supersedes the guidance in the Exchanges of a Nonfinancial Asset for a Noncontrolling Ownership Interest and (iii) provides guidance on the accounting of partial sales of nonfinancial assets and contributions of nonfinancial assets to a joint venture or other noncontrolled investee. The new standard allows for either a retrospective or modified retrospective approach. The guidance will be effective in the first quarter of 2018 and allows for early adoption. The Company will adopt the new standard as of January 1, 2018 using the modified retrospective approach, applying the provisions to open contracts as of the date of adoption. See "Revenue and Gain Recognition" above for additional discussion of the impact of adopting the guidance. In November 2016, the FASB issued ASU 2016-18-Statement of Cash Flows (Topic 230): Restricted Cash, which requires statements of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new standard requires a retrospective approach. The guidance will be effective in the first quarter of 2018 and allows for early adoption. The Company adopted the guidance as of October 1, 2017 and it did not have a material effect on the Company’s financial position or results of operations. See discussion of the impact to the Company's Consolidated Statements of Cash Flows under "Change in Accounting Principle." In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses eight specific cash flow issues including debt prepayment or debt extinguishment costs, proceeds from the settlement of insurance claims, distributions received from equity method investees and separately identifiable cash flows and application of the predominance principle. The new standard requires a retrospective approach. The guidance will be effective in the first quarter of 2018 and allows for early adoption. The Company adopted this guidance as of January 1, 2017. The new standard did not have a material effect on the Company's Consolidated Statements of Cash Flows. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of share-based payment transactions, including income tax consequences, classification of awards as equity or liability, statement of cash flows classification and policy election options for forfeitures. The Company adopted this guidance as of January 1, 2017 which did not have a material effect on the Company's financial position, results of operations or earnings per share as discussed in "Earnings per Common Share." Upon adoption of the standard, the Company elected to account for forfeitures when they occur instead of estimating the forfeitures. See discussion of the impact to the Company's Consolidated Statements of Cash Flows under "Change in Accounting Principle." In February 2016, the FASB issued ASU 2016-02, Leases, amending the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The guidance will be effective in the first quarter of 2019 and allows for early adoption. The new standard requires a modified retrospective transition approach for all leases existing at the date of initial application, with an option to use certain transition relief. ASU 2016-02 provides for transition relief, which includes not electing to (i) reassess whether any expired or existing contract is a lease or contains a lease, (ii) reassess the lease classification of any expired or existing leases and (iii) expense any capitalized initial direct costs for any existing leases. The Company anticipates adoption of the standard to have a material impact on its financial position resulting from the recognition of the right to use asset and corresponding lease obligation for its long-term ground leases, currently accounted for as operating leases. The Company will continue to assess the impact of the new standard. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and in August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers-Deferral of the Effective Date, which defers the effective date of the new revenue recognition standard until the first quarter of 2018. Subsequently, the FASB has issued multiple ASUs clarifying ASU 2014-09 and ASU 2015-14. Under the new standard, revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. Revenue is generally recognized net of allowances and any taxes collected from customers and subsequently remitted to governmental authorities. The majority of the Company's revenue is derived from rental income, which is scoped out from this standard and will be accounted for under ASU 2016-02, Leases, discussed above. The Company's other revenue streams, which are being evaluated under this ASU, include but are not limited to management fees, non-recurring rental and non-rental related income, and gains and losses from real estate dispositions. The Company will adopt the new standard as of January 1, 2018 using the modified retrospective approach, applying the provisions to open contracts as of the date of adoption. See "Revenue and Gain Recognition" above for additional discussion of the impact of adopting the guidance. Change in Accounting Principle As of January 1, 2017, the Company adopted ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting, as discussed under "Recently Issued and Adopted Accounting Standards." The guidance requires payments related to tax withholding for share-based compensation to be presented separately as a financing activity on the Consolidated Statements of Cash Flows, and was adopted retrospectively. The prior period amounts that have been impacted by the new guidance and retrospectively adjusted include (i) an increase in accrued expenses, other liability and accrued interest payable (cash provided by operating activities) and (ii) payments related to tax withholding for share-based compensation (cash used in financing activities), located on the Consolidated Statements of Cash Flows. As of October 1, 2017, the Company adopted ASU 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash, as discussed under "Recently Issued and Adopted Accounting Standards." The guidance requires statements of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents, and was adopted retrospectively. The prior period amounts that have been impacted by the new guidance and retrospectively adjusted include (i) an increase in cash in operating escrows (cash provided by operating activities), (ii) an increase in cash in deposit escrows (cash provided by investing activities) and (iii) repayments of mortgage notes payable, including prepayment penalties (cash used in financing activities), located on the Consolidated Statements of Cash Flows. The following tables present the impact of the two changes in accounting principle to the Consolidated Statement of Cash Flows for the years ended December 31, 2016 and 2015 (dollars in thousands):
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Interest Capitalized | |
Interest Capitalized | Interest Capitalized The Company capitalizes interest during the development and redevelopment of real estate assets. Capitalized interest associated with the Company's development or redevelopment activities totaled $64,420,000, $78,872,000 and $79,834,000 for years ended December 31, 2017, 2016 and 2015, respectively. |
Mortgage Notes Payable, Unsecured Notes and Credit Facility |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Notes Payable, Unsecured Notes and Credit Facility | Mortgage Notes Payable, Unsecured Notes and Credit Facility The Company's mortgage notes payable, unsecured notes, variable rate unsecured term loans (the “Term Loans”) and Credit Facility, as defined below, as of December 31, 2017 and 2016 are summarized below. The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of December 31, 2017 and 2016, as shown on the Consolidated Balance Sheets (dollars in thousands) (see Note 6, “Real Estate Disposition Activities”).
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The following debt activity occurred during the year ended December 31, 2017:
At December 31, 2017, the Company has a $1,500,000,000 revolving variable rate unsecured credit facility with a syndicate of banks (the "Credit Facility") which matures in April 2020. The Company may extend the maturity for up to nine months, provided the Company is not in default and upon payment of a $1,500,000 extension fee. The Credit Facility bears interest at varying levels based on the London Interbank Offered Rate (“LIBOR”), rating levels achieved on the Company's unsecured notes and on a maturity schedule selected by the Company. The current stated pricing is LIBOR plus 0.825% per annum (2.39% at December 31, 2017), assuming a one month borrowing rate. The annual facility fee is 0.125% (or approximately $1,875,000 annually based on the $1,500,000,000 facility size and based on the Company's current credit rating). The Company had no borrowings outstanding under the Credit Facility and had $47,315,000 and $46,711,000 outstanding in letters of credit that reduced the borrowing capacity as of December 31, 2017 and 2016, respectively. In the aggregate, secured notes payable mature at various dates from April 2018 through July 2066, and are secured by certain apartment communities (with a net carrying value of $2,293,583,000, excluding communities classified as held for sale, as of December 31, 2017). As of December 31, 2017, the Company has guaranteed a $100,000,000 secured note payable held by a wholly-owned subsidiary; such secured note payable is consolidated for financial reporting purposes. The weighted average interest rate of the Company's fixed rate secured notes payable (conventional and tax-exempt) was 4.0% and 4.4% at December 31, 2017 and 2016, respectively. The weighted average interest rate of the Company's variable rate secured notes payable (conventional and tax exempt), the Term Loans and its Credit Facility, including the effect of certain financing related fees, was 3.0% and 2.3% at December 31, 2017 and 2016, respectively. Scheduled payments and maturities of mortgage notes payable and unsecured notes outstanding at December 31, 2017 are as follows (dollars in thousands):
The Company's unsecured notes are redeemable at the Company's option, in whole or in part, generally at a redemption price equal to the greater of (i) 100% of their principal amount or (ii) the sum of the present value of the remaining scheduled payments of principal and interest discounted at a rate equal to the yield on U.S. Treasury securities with a comparable maturity plus a spread between 20 and 45 basis points depending on the specific series of unsecured notes, plus accrued and unpaid interest to the redemption date. The indenture under which the Company's unsecured notes were issued, the Company's Credit Facility agreement and the Company's Term Loan agreement contain limitations on the amount of debt the Company can incur or the amount of assets that can be used to secure other financing transactions, and other customary financial and other covenants, with which the Company was in compliance at December 31, 2017. |
Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||
Equity | Equity As of December 31, 2017 and 2016, the Company's charter had authorized for issuance a total of 280,000,000 shares of common stock and 50,000,000 shares of preferred stock. During the year ended December 31, 2017, the Company:
Any deferred compensation related to the Company’s stock option, restricted stock and performance award grants during the year ended December 31, 2017 is not reflected on the accompanying Consolidated Balance Sheet as of December 31, 2017, and will not be reflected until recognized as compensation cost. In December 2015, the Company commenced a fourth continuous equity program (“CEP IV”) under which the Company may sell (and/or enter into forward agreements for) up to $1,000,000,000 of its common stock from time to time. Actual sales will depend on a variety of factors to be determined by the Company, including market conditions, the trading price of the Company's common stock and determinations by the Company of the appropriate sources of funding for the Company. In conjunction with CEP IV, the Company engaged sales agents who will receive compensation of up to 2.0% of the gross sales price for shares sold. The Company expects that, if entered into, it will physically settle each forward sale agreement on one or more dates specified by the Company on or prior to the maturity date of that particular forward sale agreement, in which case the Company will expect to receive aggregate net cash proceeds at settlement equal to the number of shares underlying the particular forward agreement multiplied by the relevant forward sale price. However, the Company may also elect to cash settle or net share settle a forward sale agreement. In connection with each forward sale agreement, the Company will pay the relevant forward seller, in the form of a reduced initial forward sale price, commission of up to 2.0% of the sales prices of all borrowed shares of common stock sold. As of December 31, 2017, there are no outstanding forward sales agreements. In 2017, the Company sold 568,424 shares at an average sales price of $188.39 per share, for net proceeds of $105,478,000. As of December 31, 2017, the Company had $892,915,000 of shares remaining authorized for issuance under this program. |
Investments in Real Estate Entities |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Real Estate Entities | Investments in Real Estate Entities Investments in Unconsolidated Real Estate Entities The Company accounts for its investments in unconsolidated real estate entities under the equity method of accounting, as discussed in Note 1, “Organization, Basis of Presentation and Significant Accounting Policies,” under Principles of Consolidation. The significant accounting policies of the Company's unconsolidated real estate entities are consistent with those of the Company in all material respects. As of December 31, 2017, the Company had investments in the following real estate entities:
During 2017, Fund II sold its final three communities containing an aggregate of 1,366 apartment homes:
The Company's proportionate share of the gain in accordance with GAAP for the three dispositions was $26,322,000. In conjunction with the disposition of these communities during 2017, Fund II repaid the remaining $127,179,000 of related secured indebtedness at par in advance of the scheduled maturity dates. The Company has an equity interest of 31.3% in Fund II, and upon achievement of a threshold return the Company has a right to incentive distributions for its promoted interest based on current returns earned by Fund II which currently represents 40.0% of further Fund II distributions, which is in addition to its proportionate share of the remaining 60.0% of distributions. During the year ended December 31, 2017, the Company recognized income of $26,742,000 for its promoted interest, which is reported as a component of equity in income of unconsolidated real estate entities on the accompanying Consolidated Statements of Comprehensive Income.
During 2017, the U.S. Fund sold Eaves Sunnyvale, located in Sunnyvale, CA, containing 192 apartment homes for $107,000,000. The Company's proportionate share of the gain in accordance with GAAP was $13,788,000. In conjunction with the disposition of this community, the U.S. Fund repaid $32,542,000 of related secured indebtedness in advance of its scheduled maturity date. This resulted in a charge for a prepayment penalty and the write-off of deferred financing costs, of which the Company’s portion was $406,000, which is reported as a reduction of equity in income of unconsolidated real estate entities on the accompanying Consolidated Statements of Comprehensive Income. Subsidiaries of the U.S. Fund have six loans secured by individual assets with aggregate amounts outstanding of $237,469,000, with maturity dates that vary from February 2019 to November 2022. The mortgage loans are payable by the subsidiaries of the U.S. Fund with operating cash flow or disposition proceeds from the underlying real estate. The Company has not guaranteed the debt of the U.S. Fund, nor does the Company have any obligation to fund this debt should the U.S. Fund be unable to do so.
The AC JV partnership agreement contains provisions that require the Company to provide a right of first offer (“ROFO”) to the AC JV in connection with additional opportunities to acquire or develop additional interests in multifamily real estate assets within a specified geographic radius of the existing assets, generally one mile or less. The ROFO restriction expires in 2019. As of December 31, 2017, subsidiaries of the AC JV have eight unsecured loans outstanding in the aggregate of $162,300,000 which mature in August 2021, and which were made by the equity investors in the venture, including the Company, in proportion to the investors' respective equity ownership interest. The unsecured loans are payable by the subsidiaries of the AC JV with operating cash flow from the venture. The Company has not guaranteed the debt of the AC JV, nor does the Company have any obligation to fund this debt should the AC JV be unable to do so.
During 2015, the Company received $20,680,000 from the joint venture partner associated with MVP I, LLC, upon agreement with the partner to modify the joint venture agreement to eliminate the Company's promoted interest from associated distributions for future return calculations. Before this modification to the joint venture agreement, the Company had the right to 45.0% of distributions after achievement of a threshold return, which was achieved in 2015, up to the date the joint venture agreement was modified during 2015. Subsequent to the modification, earnings and distributions are based on the Company's 25.0% equity interest in the venture.
Brandywine has an outstanding $22,760,000 fixed rate mortgage loan that is payable by the venture. The Company has not guaranteed the debt of Brandywine, nor does the Company have any obligation to fund this debt should Brandywine be unable to do so.
The Residual Liabilities include most existing or future litigation and claims related to Archstone’s operations for periods before the close of the Archstone Acquisition, except for (i) claims that principally relate to the physical condition of the assets acquired directly by the Company or Equity Residential, which generally remain the sole responsibility of the Company or Equity Residential, as applicable, and (ii) certain tax and other litigation between Archstone and various equity holders in Archstone related to periods before the close of the Archstone Acquisition, and claims which may arise due to changes in the capital structure of Archstone that occurred prior to closing, for which the seller has agreed to indemnify the Company and Equity Residential. The Company and Equity Residential jointly control the Residual JV and the Company holds a 40.0% economic interest in the Residual JV.
The following is a combined summary of the financial position of the entities accounted for using the equity method as of the dates presented, excluding amounts associated with development joint ventures, the Residual JV and Legacy JV (dollars in thousands):
The following is a combined summary of the operating results of the entities accounted for using the equity method, for the years presented, excluding amounts associated with development joint ventures, Avalon Clarendon, the Residual JV and Legacy JV (dollars in thousands):
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In conjunction with the formation of Fund II and AVA North Point, and the acquisition of the U.S. Fund, AC JV and Brandywine, the Company incurred costs in excess of its equity in the underlying net assets of the respective investments. These costs represent $35,402,000 and $38,015,000 at December 31, 2017 and 2016, respectively, of the respective investment balances. These amounts are being amortized over the lives of the underlying assets as a component of equity in income of unconsolidated real estate entities on the accompanying Consolidated Statements of Comprehensive Income. The following is a summary of the Company's equity in income of unconsolidated real estate entities for the years presented (dollars in thousands):
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Investments in Consolidated Real Estate Entities During the year ended December 31, 2017, the Company acquired three consolidated communities:
The Company accounted for these as asset acquisitions and recorded the acquired assets and assumed liabilities, including identifiable intangibles, at their relative fair values based on the purchase price and acquisition costs incurred. Expensed transaction costs associated with the acquisitions made by the Company in 2016 and 2015, all of which were accounted for as business combinations prior to the adoption of ASU 2017-01 on October 1, 2016, totaled $5,139,000 and $3,806,000, respectively. These amounts are reported as a component of expensed acquisition, development and other pursuit costs, net of recoveries on the accompanying Consolidated Statements of Comprehensive Income. To the extent the Company received amounts related to acquired communities for periods prior to their acquisition, the Company reported these receipts, net with expensed acquisition costs. On February 27, 2013, pursuant to an asset purchase agreement dated November 26, 2012, the Company, together with Equity Residential, acquired, directly or indirectly, all of the assets owned by Archstone Enterprise LP (“Archstone,” which has since changed its name to Jupiter Enterprise LP), including all of the ownership interests in joint ventures and other entities owned by Archstone, and assumed Archstone’s liabilities, both known and unknown, with certain limited exceptions. Under the terms of the purchase agreement, the Company acquired approximately 40.0% of Archstone's assets and liabilities and Equity Residential acquired approximately 60.0% of Archstone’s assets and liabilities (the “Archstone Acquisition”). In conjunction with the development of Avalon Brooklyn Bay, the Company entered into a joint venture agreement to construct a mixed-use building that will contain rental apartments, for-sale residential condominium units and related common elements. The Company owns a 70.0% interest in the venture and will have all of the rights and obligations associated with the rental apartments, and the venture partner owns the remaining 30.0% interest and will have all of the rights and obligations associated with the for-sale residential condominium units. The Company is responsible for the development and construction of the structure, and is providing a loan to the venture partner for the venture partner's share of costs. As of December 31, 2017, the Company has a receivable from the venture partner in the form of a variable rate mortgage note, secured by the for-sale residential condominium units under construction in the amount of $44,831,000 for outstanding principal and interest, reported as a component of prepaid expenses and other assets on the accompanying Consolidated Balance Sheets. The Company recognizes interest income on the accrual basis. The loan will be repaid by the venture partner with the proceeds the partner receives from the sales of the residential condominium units which are expected to occur during 2018. The venture is considered a VIE, and the Company consolidates its interest in the rental apartments and common areas, which are included in total real estate, net on the accompanying Consolidated Balance Sheets. |
Real Estate Disposition Activities |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Disposition Activities | Real Estate Disposition Activities During 2017, the Company sold six wholly-owned operating communities, containing an aggregate of 1,624 apartment homes for an aggregate sales price of $475,500,000 and an aggregate gain of $251,163,000. In addition during 2017, the Company sold other real estate, including three undeveloped land parcels, one of which the Company recorded an impairment during 2017 as discussed in Note 1, “Organization, Basis of Presentation and Significant Accounting Policies,” for an aggregate sales price of $39,154,000, resulting in an aggregate gain of $1,682,000. Details regarding the real estate sales are summarized in the following table (dollars in thousands):
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As of December 31, 2017, the Company had no real estate assets that qualified as held for sale. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Employment Agreements and Arrangements At December 31, 2017, the Company does not have any employment agreements with executive officers. The standard restricted stock and option agreements used by the Company in its compensation program provide that upon an employee's termination without cause or the employee's Retirement (as defined in the agreement), all outstanding stock options and restricted shares of stock held by the employee will vest, and the employee will have up to 12 months or until the fifth anniversary of the grant date, if later, or until the option expiration date, if earlier, to exercise any options then held. Under the agreements, Retirement generally means a termination of employment and other business relationships, other than for cause, after attainment of age 50, provided that (i) the employee has worked for the Company for at least 10 years, (ii) the employee's age at Retirement plus years of employment with the Company equals at least 70, (iii) the employee provides at least six months written notice of his intent to retire, and (iv) the employee enters into a one year non-compete and employee non-solicitation agreement. The Company also has an Officer Severance Program (the “Program”). Under the Program, in the event an officer who is not otherwise covered by a severance arrangement is terminated (other than for cause), or chooses to terminate his or her employment for good reason (as defined), in either case within 18 months following a sale event (as defined) of the Company, such officer will generally receive a cash lump sum payment equal to a multiple of the officer's covered compensation (base salary plus annual cash bonus). The multiple is one times for vice presidents and senior vice presidents, two times for executive vice presidents and three times for the chief executive officer. The officer's restricted stock and options would also vest. Costs related to the Program are deferred and recognized over the requisite service period when considered by management to be probable and estimable. Legal Contingencies The Company accounts for recoveries from legal matters as a reduction in the legal and related costs incurred associated with the matter, with recoveries in excess of these costs reported as a gain or, where appropriate, a reduction in the net cost basis of a community to which the suit related. During the years ended December 31, 2017 and 2016, the Company recognized $6,118,000 and $417,000 in legal recoveries. There were no material receipts during the year ended December 31, 2015, excluding amounts for the Residual JV. Amounts recognized during the year ended December 31, 2017 include $5,438,000 in legal settlement proceeds relating to construction defects at a community acquired as part of the Archstone Acquisition, reported as a component of casualty and impairment loss (gain), net on the accompanying Consolidated Statements of Comprehensive Income. Maplewood Casualty Loss In February 2017, a fire occurred at the Company's Avalon Maplewood Development Community, located in Maplewood, NJ, which was under construction and not yet occupied. The Company believes that liabilities to third parties resulting from the fire will not be material and will, in any event, be substantially covered by insurance subject to a deductible. The Company has commenced reconstruction of the damaged and destroyed portions of the community. See Note 1, "Organization, Basis of Presentation and Significant Accounting Policies," for further discussion of the casualty gains and losses associated with the Maplewood casualty loss. Edgewater Casualty Loss In conjunction with legal matters associated with the Edgewater casualty loss, the Company has established protocols for processing claims from third parties who suffered losses as a result of the fire, and many third parties have contacted the Company's insurance carrier and settled their claims. See Note 1, "Organization, Basis of Presentation and Significant Accounting Policies," for further discussion of the casualty gains and losses associated with the Edgewater casualty loss. Three class action lawsuits have been filed against the Company on behalf of occupants of the destroyed building and consolidated in the United States District Court for the District of New Jersey. The Company has agreed with class counsel to the terms of a settlement which provides a claims process (with agreed upon protocols for instructing the adjuster as to how to evaluate claims) and, if needed, an arbitration process to determine damage amounts to be paid to individual claimants covered by the class settlement. In July 2017 the District Court granted final approval of the settlement and all claims have been submitted to the independent claims adjuster. A total of 66 units (consisting of residents who did not previously settle their claims and who did not opt out of the class settlement) are included in the class action settlement and bound by its terms. However, only 44 units submitted claims. The independent claims adjuster is currently reviewing the claims submitted, which total approximately $6,900,000. To date, this claims adjuster has issued awards of behalf of three units and it is expected that the remaining awards should be determined and issued within the next two months. A fourth class action, being heard in the same federal court, was filed against the Company on behalf of residents of the second Edgewater building that suffered minimal damage. In addition to the class action lawsuits described above, 18 of the 19 lawsuits representing approximately 143 individual plaintiffs filed in the Superior Court of New Jersey Bergen County - Law Division were previously scheduled for trial on January 2, 2018. In advance of this date, the Company was able to resolve all of these claims in principle which included approximately 50 units. The Company previously resolved litigated claims with another 10 units. There is currently one remaining lawsuit which was recently filed in the Superior Court of New Jersey Bergen County - Law Division on behalf of one apartment unit. The Company believes it has meritorious defenses to the extent of damages claimed in that suit. There are also seven subrogation lawsuits that have been filed against the Company by insurers of Edgewater residents who obtained renters insurance; it is the Company's position that in the majority of the applicable leases the residents waived subrogation rights. One of these lawsuits has been dismissed on that basis, one is pending in the Superior Court of New Jersey, Bergen County - Law Division, one has been amicably resolved in principle and the other four have been consolidated and are currently pending in the United States District Court for the District of New Jersey. The District Court denied the Company's motions seeking dismissal on this basis. The Company will reassess the viability of this defense after conducting additional discovery. Having settled many third party claims through the insurance claims process, the Company currently believes that any potential remaining liability to third parties (including any potential liability to third parties determined in accordance with the class settlement described above) will not be material to the Company and will in any event be substantially covered by the Company's insurance policies. However, the Company can give no assurances in this regard and continues to evaluate this matter. The Company is involved in various other claims and/or administrative proceedings unrelated to the Edgewater casualty loss that arise in the ordinary course of its business. While no assurances can be given, the Company does not currently believe that any of these other outstanding litigation matters, individually or in the aggregate, will have a material adverse effect on its financial condition or results of operations. Lease Obligations The Company owns 13 apartment communities, one under development and two commercial properties, located on land subject to land leases expiring between October 2026 and March 2142. The ground leases for 13 apartment communities, of which two represent dual-branded communities with one underlying land lease, and the two commercial properties, are accounted for as operating leases recognizing rental expense on a straight-line basis over the lease term. These leases have varying escalation terms, primarily based on variables determined at future dates such as changes in the Consumer Price Index, and five of these leases have purchase options exercisable through 2095. The Company incurred costs of $23,431,000, $23,343,000 and $21,295,000 in the years ended December 31, 2017, 2016 and 2015, respectively, related to operating leases. One apartment community is located on land subject to a land lease which is accounted for as a capital lease and has the option for the Company to purchase the land at some point during the lease term which expires in 2046. In addition, the Company is party to a lease for a portion of the parking garage adjacent to a lease-up community, accounted for as a capital lease and subject to the Company's real estate accounting policies discussed in Note 1, “Organization, Basis of Presentation and Significant Accounting Policies.” The Company has a total lease obligation of $20,118,000 reported as a component of accrued expenses and other liabilities. In addition, the Company is party to 14 leases for its corporate and regional offices with varying terms through 2031, all of which are accounted for as operating leases. During the year ended December 31, 2017, the Company acquired the land encumbered by the ground lease for Avalon Morningside Park for $95,000,000, recognizing a non-cash write-off of prepaid rent of $11,153,000 associated with the ground lease termination, reported as a component of (loss) gain on other real estate transactions on the accompanying Consolidated Statements of Comprehensive Income. Also during the year ended December 31, 2017, the Company exercised its purchase option under a capital lease, acquiring the land encumbered by the ground lease for Avalon at Assembly Row and AVA Somerville for $17,285,000. The following table details the future minimum lease payments under the Company's current leases (dollars in thousands):
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Company's reportable operating segments include Established Communities, Other Stabilized Communities and Development/Redevelopment Communities. Annually as of January 1, the Company determines which of its communities fall into each of these categories and generally maintains that classification throughout the year for the purpose of reporting segment operations, unless disposition or redevelopment plans regarding a community change.
In addition, the Company owns land for future development and has other corporate assets that are not allocated to an operating segment. The Company's segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing each segment's performance. The Company's chief operating decision maker is comprised of several members of its executive management team who use net operating income (“NOI”) as the primary financial measure for Established Communities and Other Stabilized Communities. NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excluding corporate-level income (including management, development and other fees), corporate-level property management and other indirect operating expenses, investments and investment management expenses, expensed acquisition, development and other pursuit costs, net of recoveries, interest expense, net, loss (gain) on extinguishment of debt, net, general and administrative expense, equity in income of unconsolidated real estate entities, depreciation expense, corporate income tax expense, casualty and impairment loss (gain), net, gain on sale of communities, loss (gain) on other real estate transactions and net operating income from real estate assets sold or held for sale. Although the Company considers NOI a useful measure of a community's or communities' operating performance, NOI should not be considered an alternative to net income or net cash flow from operating activities, as determined in accordance with GAAP. NOI excludes a number of income and expense categories as detailed in the reconciliation of NOI to net income. A reconciliation of NOI to net income for years ended December 31, 2017, 2016 and 2015 is as follows (dollars in thousands):
The following is a summary of NOI from real estate assets sold or held for sale for the periods presented (dollars in thousands):
The primary performance measure for communities under development or redevelopment depends on the stage of completion. While under development, management monitors actual construction costs against budgeted costs as well as lease-up pace and rent levels compared to budget. The following table provides details of the Company's segment information as of the dates specified (dollars in thousands). The segments are classified based on the individual community's status at the beginning of the given calendar year. Therefore, each year the composition of communities within each business segment is adjusted. Accordingly, the amounts between years are not directly comparable. Segment information for total revenue and NOI the years ended December 31, 2017, 2016 and 2015 has been adjusted to exclude the real estate assets that were sold from January 1, 2015 through December 31, 2017, or otherwise qualify as held for sale as of December 31, 2017, as described in Note 6, “Real Estate Disposition Activities.” Segment information for gross real estate as of December 31, 2017, 2016 and 2015 has not been adjusted to exclude real estate assets that were sold or otherwise qualified as held for sale subsequent to their respective balance sheet dates.
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Stock-Based Compensation Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Plans | Stock-Based Compensation Plans The Company's Second Amended and Restated 2009 Equity Incentive Plan (the “2009 Plan”) includes an authorization to issue shares of the Company's common stock, par value $0.01 per share. At December 31, 2017, the Company has 7,994,292 shares remaining available to issue under the 2009 Plan, exclusive of shares that may be issued to satisfy currently outstanding awards such as stock options or performance awards. In addition, any awards that were outstanding under the Company's 1994 Stock Option and Incentive Plan (the “1994 Plan”) on May 21, 2009, the date the Company adopted the 2009 Plan, that are subsequently forfeited, canceled, surrendered or terminated (other than by exercise) will become available for awards under the 2009 Plan. The 2009 Plan provides for various types of equity awards to associates, officers, non-employee directors and other key personnel of the Company and its subsidiaries. The types of awards that may be granted under the 2009 Plan include restricted stock, restricted stock units, stock options that qualify as incentive stock options (“ISOs”) under Section 422 of the Code, non-qualified stock options, stock appreciation rights and performance awards, among others. The 2009 Plan will expire on May 15, 2027. Information with respect to stock options granted under the 2009 and 1994 Plans is as follows:
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The following summarizes the exercise prices and contractual lives of options outstanding as of December 31, 2017:
Options outstanding and exercisable under the 2009 and 1994 Plans at December 31, 2017 had an intrinsic value of $7,745,000 and $1,010,000, respectively. Options exercisable under the 2009 and 1994 Plans had a weighted average contractual life of 4.6 years and 1.1 years, respectively. The intrinsic value of options exercised during 2017, 2016 and 2015 was $3,592,000, $9,187,000 and $18,080,000, respectively. There were no stock options granted in 2017, 2016 and 2015. The Company has a compensation framework under which share-based compensation granted is composed of annual restricted stock awards for which one third of the award vests annually over a three year period, and multi-year long term incentive performance awards. Under the Company's multi-year long term incentive compensation framework, the Company grants a target number of performance awards, with the ultimate award determined by the total shareholder return of the Company's common stock and/or operating performance metrics, measured in each case over a measurement period of up to three years. Performance awards granted in 2017 or earlier are earned in the form of time-vesting restricted stock following the end of the three-year performance period, provided that the predetermined goals have been achieved. Under the single-year long term incentive framework, awards are granted in the form of time-vesting restricted stock. For both the earned performance awards and time-vesting restricted stock, the recipient may elect to receive up to 25% of the award value in the form of stock options, for which one third of the award vests annually over a three year period. In general, performance awards are forfeited if the employee's employment terminates for any reason prior to the measurement date. However, for performance awards with performance periods beginning on or after January 1, 2015, after the first year of the performance period, if the employee's employment terminates on account of death, disability, retirement, or termination without cause at a time when the employee meets the age and service requirements for retirement, the employee shall vest in a pro rata portion of the award (based on the employee's service time during the performance period), with such vested portion to be earned and converted into shares at the end of the performance period based on actual achievement under the performance award. Information with respect to performance awards granted is as follows:
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The Company used a Monte Carlo model to assess the compensation cost associated with the portion of the performance awards granted for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows:
For the portion of the performance awards granted for which achievement is determined by using financial metrics, the compensation cost was based on a weighted average grant date value of $179.07, $161.66 and $166.23, for the years ended December 31, 2017, 2016 and 2015, respectively, and the Company's estimate of corporate achievement for the financial metrics. Information with respect to restricted stock granted is as follows:
Total employee stock-based compensation cost recognized in income was $17,085,000, $14,666,000 and $14,703,000 for the years ended December 31, 2017, 2016 and 2015, respectively, and total capitalized stock-based compensation cost was $9,474,000, $9,266,000 and $9,667,000 for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017, there was a total unrecognized compensation cost of $26,305,000 for unvested restricted stock and performance awards, which does not include forfeitures, and is expected to be recognized over a weighted average period of 3.6 years. As of January 1, 2017 the Company adopted the provisions of ASU 2016-09, electing to account for forfeitures as they occur. Prior to the adoption of ASU 2016-09, the Company was required to estimate the forfeiture of stock options and recognized compensation cost net of the estimated forfeitures. The estimated forfeitures included in compensation cost were adjusted to reflect actual forfeitures at the end of the vesting period. The actual forfeiture rate for the year ended December 31, 2017 was 0.7%. The application of estimated forfeitures did not materially impact compensation expense for the years ended December 31, 2016 and 2015. Employee Stock Purchase Plan In October 1996, the Company adopted the 1996 Non-Qualified Employee Stock Purchase Plan (as amended, the “ESPP”). Initially 1,000,000 shares of common stock were reserved for issuance under this plan. There are currently 681,284 shares remaining available for issuance under the ESPP. Full-time employees of the Company generally are eligible to participate in the ESPP if, as of the last day of the applicable election period, they have been employed by the Company for at least one month. All other employees of the Company are eligible to participate provided that, as of the applicable election period, they have been employed by the Company for 12 months. Under the ESPP, eligible employees are permitted to acquire shares of the Company's common stock through payroll deductions, subject to maximum purchase limitations, during two purchase periods. The first purchase period begins January 1 and ends June 10, and the second purchase period begins July 1 and ends December 10. The purchase price for common stock purchased under the plan is 85% of the lesser of the fair market value of the Company's common stock on the first day of the applicable purchase period or the last day of the applicable purchase period. The offering dates, purchase dates and duration of purchase periods may be changed if the change is announced prior to the beginning of the affected date or purchase period. The Company issued 11,528, 11,348 and 10,667 shares and recognized compensation expense of $418,000, $289,000 and $321,000 under the ESPP for the years ended December 31, 2017, 2016 and 2015, respectively. The Company accounts for transactions under the ESPP using the fair value method prescribed by accounting guidance applicable to entities that use employee share purchase plans. |
Related Party Arrangements |
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Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Arrangements | Related Party Arrangements Unconsolidated Entities The Company manages unconsolidated real estate entities for which it receives asset management, property management, development and redevelopment fee revenue. From these entities, the Company earned fees of $4,147,000, $5,599,000 and $9,947,000 in the years ended December 31, 2017, 2016 and 2015, respectively. These fees are recognized on an accrual basis when earned in accordance with the accounting guidance applicable to revenue recognition, and are included in management, development and other fees on the accompanying Consolidated Statements of Comprehensive Income. In addition, the Company has outstanding receivables associated with its property and construction management role of $2,449,000 and $5,239,000 as of December 31, 2017 and 2016, respectively. Director Compensation Directors of the Company who are also employees receive no additional compensation for their services as a director. Following each annual meeting of stockholders, non-employee directors receive (i) a number of shares of restricted stock (or deferred stock units) having a value of $135,000 and (ii) a cash payment of $80,000, payable in equal quarterly installments of $20,000. The number of shares of restricted stock (or deferred stock units) is calculated based on the closing price on the day of the award. Non-employee directors may elect to receive all or a portion of cash payments in the form of deferred stock units. Additionally, the Lead Independent Director receives in the aggregate an additional annual fee of $30,000 payable in equal quarterly installments of $7,500, non-employee directors serving as the chairperson of the Audit or Compensation Committees receive additional cash compensation of $20,000 per year payable in equal quarterly installments of $5,000, and the Nominating and Corporate Governance and Investment and Finance Committee chairpersons receive an additional annual fee of $15,000 payable in equal quarterly installments of $3,750. The Company recorded non-employee director compensation expense relating to restricted stock grants and deferred stock awards in the amount of $1,524,000, $1,216,000 and $1,135,000 for the years ended December 31, 2017, 2016 and 2015, respectively, as a component of general and administrative expense. Deferred compensation relating to these restricted stock grants and deferred stock awards to non-employee directors was $525,000, $531,000 and $488,000 on December 31, 2017, 2016 and 2015, respectively. |
Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Financial Instruments Carried at Fair Value Derivative Financial Instruments Currently, the Company uses interest rate swap and interest rate cap agreements to manage its interest rate risk. These instruments are carried at fair value in the Company's financial statements. In adjusting the fair value of its derivative contracts for the effect of counterparty nonperformance risk, the Company has considered the impact of its net position with a given counterparty, as well as any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. The Company minimizes its credit risk on these transactions by dealing with major, creditworthy financial institutions which have an A or better credit rating by the Standard & Poor's Ratings Group. As part of its on-going control procedures, the Company monitors the credit ratings of counterparties and the exposure of the Company to any single entity, thus reducing credit risk concentration. The Company believes the likelihood of realizing losses from counterparty nonperformance is remote. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, such as interest rate, term to maturity and volatility, the credit valuation adjustments associated with its derivatives use Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by itself and its counterparties. As of December 31, 2017, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined it is not significant. As a result, the Company has determined that its derivative valuations are classified in Level 2 of the fair value hierarchy. The Company recognized a gain of $753,000 for hedge ineffectiveness for the year ended December 31, 2017, included as a component of interest expense, net on the accompanying Consolidated Statements of Comprehensive Income. Hedge ineffectiveness did not have a material impact on earnings of the Company for any prior period. The following table summarizes the consolidated derivative positions at December 31, 2017 (dollars in thousands):
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In 2017, the Company entered into $300,000,000 of forward interest rate swap agreements executed to reduce the impact of variability in interest rates on a portion of the Company's expected debt issuance activity in 2018. As of December 31, 2017, the Company has $300,000,000 in aggregate outstanding forward interest rate swap agreements. At maturity of the remaining outstanding swap agreements, the Company expects to cash settle the contracts and either pay or receive cash for the then current fair value. Assuming that the Company issues the debt as expected, the hedging impact from these positions will then be recognized over the life of the issued debt as a yield adjustment. In addition, during 2017, the Company settled an aggregate of $800,000,000 of forward interest rate swap agreements, receiving net aggregate payments of $391,000. which consisted of the following activity:
The Company has deferred $376,000, the effective portion of the fair value change of these swaps, in accumulated other comprehensive loss on the accompanying Consolidated Balance Sheets, and will recognize the impact as a component of interest expense, net, over the 10 year period of interest payments hedged. The Company had seven derivatives designated as cash flow hedges and 14 derivatives not designated as hedges at December 31, 2017. Fair value changes for derivatives not in qualifying hedge relationships for the years ended December 31, 2017 and 2016, were not material. During 2017, the Company deferred $13,979,000 of losses for cash flow hedges reported as a component of other comprehensive income (loss). The following table summarizes the deferred losses reclassified from accumulated other comprehensive income as a component of interest expense, net (dollars in thousands):
The Company anticipates reclassifying approximately $7,012,000 of hedging losses from accumulated other comprehensive loss into earnings within the next 12 months to offset the variability of cash flows of the hedged item during this period. The Company did not have any derivatives designated as fair value hedges as of December 31, 2017 and 2016. Redeemable Noncontrolling Interests The Company provided redemption options (the “Puts”) that allow joint venture partners of the Company to require the Company to purchase their interests in the investment at a guaranteed minimum amount related to three ventures. The Puts are payable in cash. The Company determines the fair value of the Puts based on unobservable inputs considering the assumptions that market participants would make in pricing the obligations, applying a guaranteed rate of return to the joint venture partners' net capital contribution balances as of period end. Given the significance of the unobservable inputs, the valuations are classified in Level 3 of the fair value hierarchy. The Company issued units of limited partnership interest in DownREITs which provide the DownREIT limited partners the ability to present all or some of their units for redemption for cash as determined by the partnership agreement. Under the DownREIT agreements, for each limited partnership unit, the limited partner is entitled to receive cash in the amount equal to the fair value of the Company's common stock on or about the date of redemption. In lieu of cash redemption, the Company may elect to exchange such units for an equal number of shares of the Company's common stock. The limited partnership units in the DownREITs are valued using the market price of the Company's common stock, a Level 1 price under the fair value hierarchy. Financial Instruments Not Carried at Fair Value Cash and Cash Equivalents Cash and cash equivalent balances are held with various financial institutions, within principal protected accounts. The Company monitors credit ratings of these financial institutions and the concentration of cash and cash equivalent balances with any one financial institution and believes the likelihood of realizing material losses related to cash and cash equivalent balances is remote. Cash and cash equivalents are carried at their face amounts, which reasonably approximate their fair values and are Level 1 within the fair value hierarchy. Other Financial Instruments Rents and other receivables and prepaids, accounts and construction payable and accrued expenses and other liabilities are carried at their face amounts, which reasonably approximate their fair values. The Company values its unsecured notes using quoted market prices, a Level 1 price within the fair value hierarchy. The Company values its notes payable and outstanding amounts under the Credit Facility and Term Loan using a discounted cash flow analysis on the expected cash flows of each instrument. This analysis reflects the contractual terms of the instrument, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The process also considers credit valuation adjustments to appropriately reflect the Company’s nonperformance risk. The Company has concluded that the value of its notes payable and amounts outstanding under its Credit Facility and Term Loan are Level 2 prices as the majority of the inputs used to value its positions fall within Level 2 of the fair value hierarchy. Financial Instruments Measured/Disclosed at Fair Value on a Recurring Basis The following table summarizes the classification between the three levels of the fair value hierarchy of the Company's financial instruments measured/disclosed at fair value on a recurring basis (dollars in thousands):
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Quarterly Financial Information |
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Quarterly Financial Information | Quarterly Financial Information The following summary represents the unaudited quarterly results of operations for the years ended December 31, 2017 and 2016 (dollars in thousands, except per share data):
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Subsequent Events |
12 Months Ended |
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Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through the date on which this Form 10-K was filed, the date on which these financial statements were issued, and identified the items below for discussion. In January and February 2018, the Company acquired four parcels of land for development for an aggregate investment of $76,758,000. In February 2018, the Company repaid $15,174,000 of 6.60% fixed rate debt secured by Avalon Oaks West in advance of its maturity date, incurring a prepayment penalty of $152,000. |
REAL ESTATE AND ACCUMULATED DEPRECIATION |
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SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE AND ACCUMULATED DEPRECIATION |
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Amounts include real estate assets held for sale. Depreciation of AvalonBay Communities, Inc. building, improvements, upgrades and furniture, fixtures and equipment (FF&E) is calculated over the following useful lives, on a straight line basis: Building—30 years Improvements, upgrades and FF&E—not to exceed 7 years The aggregate cost of total real estate for federal income tax purposes was approximately $21,271,424 at December 31, 2017. The changes in total real estate assets for the years ended December 31, 2017, 2016 and 2015 are as follows:
The changes in accumulated depreciation for the years ended December 31, 2017, 2016 and 2015, are as follows:
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Organization, Basis of Presentation, and Significant Accounting Policies (Policies) |
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Organization | Organization and Basis of Presentation AvalonBay Communities, Inc. (the “Company,” which term, unless the context otherwise requires, refers to AvalonBay Communities, Inc. together with its subsidiaries), is a Maryland corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes under the Internal Revenue Code of 1986 (the “Code”). The Company focuses on the development, redevelopment, acquisition, ownership and operation of multifamily communities primarily in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. At December 31, 2017, the Company owned or held a direct or indirect ownership interest in 267 operating apartment communities containing 77,614 apartment homes in 12 states and the District of Columbia, of which nine communities containing 3,752 apartment homes were under redevelopment. In addition, the Company owned or held a direct or indirect ownership interest in 21 communities under development that are expected to contain an aggregate of 6,544 apartment homes (unaudited) when completed. The Company also owned or held a direct or indirect ownership interest in land or rights to land in which the Company expects to develop an additional 29 communities that, if developed as expected, will contain an estimated 9,496 apartment homes (unaudited). Capitalized terms used without definition have meanings provided elsewhere in this Form 10-K |
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Principles of Consolidation | Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, certain joint venture partnerships, subsidiary partnerships structured as DownREITs and any variable interest entities that qualify for consolidation. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for joint venture entities and subsidiary partnerships in accordance with the consolidation guidance. The Company evaluates the partnership of each joint venture entity and determines first whether to follow the variable interest entity (“VIE”) or the voting interest entity (“VOE”) model. Once the appropriate consolidation model is identified, the Company then evaluates whether it should consolidate the venture. Under the VIE model, the Company consolidates an investment when it has control to direct the activities of the venture and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the VOE model, the Company consolidates an investment when 1) it controls the investment through ownership of a majority voting interest if the investment is not a limited partnership or 2) it controls the investment through its ability to remove the other partners in the investment, at its discretion, when the investment is a limited partnership. The Company generally uses the equity method of accounting for its investment in joint ventures, under all other potential scenarios, including where the Company holds a noncontrolling limited partner interest in a joint venture. Any investment in excess of the Company's cost basis at acquisition or formation of an equity method venture, will be recorded as a component of the Company's investment in the joint venture and recognized over the life of the underlying fixed assets of the venture as a reduction to its equity in income from the venture. Investments in which the Company has little or no influence are accounted for using the cost method. |
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Revenue and Gain Recognition | Revenue and Gain Recognition Rental income related to the Company’s residential and retail leases is recognized on an accrual basis when due from residents and/or retail tenants, as required by the accounting guidance applicable to leases, which provides guidance on classification and recognition. In accordance with the Company's standard residential lease terms, rental payments are generally due on a monthly basis. Any cash concessions given at the inception of the lease are amortized over the approximate life of the lease, which is generally one year. |
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Real Estate | Real Estate Operating real estate assets are stated at cost and consist of land and improvements, buildings and improvements, furniture, fixtures and equipment, and other costs incurred during their development, redevelopment and acquisition. Significant expenditures which improve or extend the life of an existing asset and that will benefit the Company for periods greater than a year, are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. The Company generally expenses purchases of personal property made for replacement purposes. Project costs related to the development, construction and redevelopment of real estate projects (including interest and related loan fees, property taxes and other direct costs) are capitalized as a cost of the project. Indirect project costs that relate to several projects are capitalized and allocated to the projects to which they relate. Indirect costs not clearly related to development, construction and redevelopment activity are expensed as incurred. For development, capitalization (i) begins when the Company has determined that development of the future asset is probable, (ii) can be suspended if there is no current development activity underway, but future development is still probable and (iii) ends when the asset, or a portion of an asset, is delivered and is ready for its intended use, or the Company's intended use changes such that capitalization is no longer appropriate. For land parcels improved with operating real estate, for which the Company intends to pursue development, the Company generally manages the current improvements until such time as all tenant obligations have been satisfied or eliminated through negotiation, and construction of new apartment communities is ready to begin. Revenue from incidental operations received from the current improvements on land parcels in excess of any incremental costs are recorded as a reduction of total capitalized costs of the respective Development Right and not as part of net income. Incidental operating costs in excess of incidental operating income are expensed in the period incurred. For redevelopment efforts, the Company capitalizes costs either (i) in advance of taking homes out of service when significant renovation of the common area has begun until the redevelopment is completed, or (ii) when an apartment home is taken out of service for redevelopment until the redevelopment is completed and the apartment home is available for a new resident. Rental income and operating costs incurred during the initial lease-up or post-redevelopment lease-up period are recognized in earnings as incurred. The Company defers external costs associated with originating new leases, recognizing the impact of these costs in earnings over the term of the lease. The adoption of ASU 2017-01 on October 1, 2016, impacted the Company's accounting framework for the acquisition of operating communities. Prior to adoption, the acquisition of an operating community was viewed as an acquisition of a business, and the Company identified and recorded each asset acquired and liability assumed in such transaction at its estimated fair value at the date of acquisition, and expensed all costs incurred related to acquisitions of operating communities. Subsequent to adoption of ASU 2017-01 on October 1, 2016, the Company assesses each acquisition of an operating community to determine if it meets the definition of a business or if it qualifies as an asset acquisition. The Company generally views acquisitions of individual operating communities as asset acquisitions, and results in the capitalization of acquisition costs, and the allocation of purchase price to the assets acquired and liabilities assumed, based on the relative fair value of the respective assets and liabilities. The purchase price allocation to tangible assets, such as land and improvements, buildings and improvements, and furniture, fixtures and equipment, and the in-place lease intangible assets, is as reflected in real estate assets and depreciated over their estimated useful lives. Any purchase price allocation to intangible assets, other than in-place lease intangibles, is included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets and amortized over the term of the acquired intangible asset. The Company values land based on a market approach, looking to recent sales of similar properties, adjusting for differences due to location, the state of entitlement as well as the shape and size of the parcel. Improvements to land are valued using a replacement cost approach and consider the structures and amenities included for the communities. The approach applied industry standard replacement costs adjusted for geographic specific considerations and reduced by estimated depreciation. The value for furniture, fixtures and equipment is also determined based on a replacement cost approach, considering costs for both items in the apartment homes as well as common areas and was adjusted for estimated depreciation. The fair value of buildings acquired is estimated using the replacement cost approach, assuming the buildings were vacant at acquisition. The replacement cost approach considers the composition of structures acquired, adjusted for an estimate of depreciation. The estimate of depreciation is made considering industry standard information, depreciation curves for the identified asset classes and estimated useful life of the acquired property. The value of the acquired lease-related intangibles considered the estimated cost of leasing the apartment homes as if the acquired building(s) were vacant, as well as the value of the current leases relative to market-rate leases. The in-place lease value is determined using an average total lease-up time, the number of apartment homes and net revenues generated during the lease-up time. The lease-up period for an apartment community is assumed to be 12 months to achieve stabilized occupancy. Net revenues use market rent considering actual leasing and industry rental rate data. The value of current leases relative to a market-rate lease is based on market rents obtained for market comparables, and considered a market derived discount rate. Given the heterogeneous nature of multifamily real estate, the fair values for the land, debt, real estate assets and in-place leases incorporated significant unobservable inputs and therefore are considered to be Level 3 prices within the fair value hierarchy. Consideration for acquisitions is typically in the form of cash unless otherwise disclosed. Depreciation is calculated on buildings and improvements using the straight-line method over their estimated useful lives, which range from seven to 30 years. Furniture, fixtures and equipment are generally depreciated using the straight-line method over their estimated useful lives, which range from three years (primarily computer-related equipment) to seven years. |
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Income Taxes | Income Taxes The Company elected to be treated as a REIT for U.S. federal income tax purposes for its tax year ended December 31, 1994 and has not revoked such election. A REIT is a corporate entity which holds real estate interests and can deduct from its federally taxable income qualifying dividends it pays if it meets a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its adjusted taxable income to stockholders. Therefore, as a REIT, the Company generally will not be subject to corporate level federal income tax on its taxable income if it annually distributes 100% of its taxable income to its stockholders. The states in which the Company operates have similar tax provisions which recognize the Company as a REIT for state income tax purposes. Management believes that all such conditions for the exemption from income taxes on ordinary income have been or will be met for the periods presented. Accordingly, no provision for federal and state income taxes has been made. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal corporate income taxes at regular corporate rates and may not be able to qualify as a corporate REIT for four subsequent taxable years. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed taxable income and in certain other instances. The Company did not incur any charges or receive refunds of excise taxes related to the years ended December 31, 2017, 2016 and 2015. In addition, taxable income from non-REIT activities performed through taxable REIT subsidiaries (“TRS”) is subject to federal, state and local income taxes. The Company incurred income tax expense of $141,000, $305,000 and $1,483,000 in 2017, 2016 and 2015, respectively, associated primarily with activities transacted through a TRS. As of December 31, 2017 and 2016, the Company did not have any unrecognized tax benefits. The Company does not believe that there will be any material changes in its unrecognized tax positions over the next 12 months. The Company is subject to examination by the respective taxing authorities for the tax years 2014 through 2016. On December 22, 2017, H.R. 1, the Tax Cuts and Jobs Act (the “TCJA”), was enacted. The TCJA makes major changes to the Code, including lowering the statutory U.S. federal income tax rate from 35% to 21% effective January 1, 2018. The Company has completed its assessment of the Act and does not believe it will have a material impact on its financial position or results of operations. The following reconciles net income attributable to common stockholders to taxable net income for the years ended December 31, 2017, 2016 and 2015 (unaudited, dollars in thousands):
The following summarizes the tax components of the Company's common dividends declared for the years ended December 31, 2017, 2016 and 2015 (unaudited):
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Deferred Financing Costs | Deferred Financing Costs Deferred financing costs include fees and other expenditures necessary to obtain debt financing and are amortized on a straight-line basis, which approximates the effective interest method, over the shorter of the term of the loan or the related credit enhancement facility, if applicable. Unamortized financing costs are charged to earnings when debt is retired before the maturity date. Accumulated amortization of deferred financing costs related to unsecured notes was $16,984,000 and $14,008,000 as of December 31, 2017 and 2016, respectively, and related to mortgage notes payable was $4,991,000 and $10,562,000 as of December 31, 2017 and 2016, respectively. Deferred financing costs, except for costs associated with line-of-credit arrangements, are presented as a direct deduction from the related debt liability. Accumulated amortization of deferred financing costs related to the Company's Credit Facility was $8,299,000 and $6,490,000 as of December 31, 2017 and 2016, respectively, and was included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets. |
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Cash, Cash Equivalents and Cash in Escrow | Cash, Cash Equivalents and Cash in Escrow Cash and cash equivalents include all cash and liquid investments with an original maturity of three months or less from the date acquired. Cash in escrow includes principal reserve funds that are restricted for the repayment of specified secured financing. The majority of the Company's cash, cash equivalents and cash in escrow are held at major commercial banks. |
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Comprehensive Income | Comprehensive Income Comprehensive income, as reflected on the Consolidated Statements of Comprehensive Income, is defined as all changes in equity during each period except for those resulting from investments by or distributions to shareholders. Accumulated other comprehensive loss, as reflected on the Consolidated Statements of Equity, reflects the effective portion of the cumulative changes in the fair value of derivatives in qualifying cash flow hedge relationships. |
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Earnings per Common Share | Earnings per Common Share Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common shareholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per share (“EPS”). Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. The Company's earnings per common share are determined as follows (dollars in thousands, except per share data):
All options to purchase shares of common stock outstanding as of December 31, 2017, 2016 and 2015 are included in the computation of diluted earnings per share. As discussed under "Recently Issued and Adopted Accounting Standards," as of January 1, 2017, the Company adopted the provisions of ASU 2016-09 using the modified retrospective approach to recognize forfeitures as they occur. Prior to the adoption of this standard, the Company was required to estimate the forfeiture of stock options and recognized compensation cost net of the estimated forfeitures. The estimated forfeitures included in compensation cost were adjusted to reflect actual forfeitures at the end of the vesting period. This change in accounting principle had no impact on the Company's financial position and no adjustment to retained earnings or the Company's diluted shares outstanding, as prescribed under the modified retrospective approach. Refer to "Change in Accounting Principle" for discussion of the impact to the accompanying Consolidated Statements of Cash Flows. |
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Abandoned Pursuit Costs, Impairment of Long-Lived Assets and Casualty Loss | Abandoned Pursuit Costs and Impairment of Long-Lived Assets The Company capitalizes pre-development costs incurred in pursuit of new development opportunities for which the Company currently believes future development is probable (“Development Rights”). Future development of these Development Rights is dependent upon various factors, including zoning and regulatory approval, rental market conditions, construction costs and the availability of capital. Initial pre-development costs incurred for pursuits for which future development is not yet considered probable are expensed as incurred. In addition, if the status of a Development Right changes, making future development by the Company no longer probable, any capitalized pre-development costs are expensed. The Company expensed costs related to the abandonment of Development Rights, as well as costs incurred in pursuing the acquisition or disposition of assets for which such acquisition and disposition activity did not occur, in the amounts of $2,370,000, $4,183,000 and $3,016,000 during the years ended December 31, 2017, 2016 and 2015, respectively. These costs are included in expensed acquisition, development and other pursuit costs, net of recoveries on the accompanying Consolidated Statements of Comprehensive Income. Abandoned pursuit costs can vary greatly, and the costs incurred in any given period may be significantly different in future periods. The Company evaluates its real estate and other long-lived assets for impairment when potential indicators of impairment exist. Such assets are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is not recoverable. If events or circumstances indicate that the carrying amount of a property or long-lived asset may not be recoverable, the Company assesses its recoverability by comparing the carrying amount of the property or long-lived asset to its estimated undiscounted future cash flows. If the carrying amount exceeds the aggregate undiscounted future cash flows, the Company recognizes an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property or long-lived asset. Based on periodic tests of recoverability of long-lived assets, for the years ended December 31, 2017, 2016 and 2015, the Company did not recognize any impairment losses for wholly-owned operating real estate assets, and did not record any impairment losses other than those related to the impairment on land held for investment and casualty gains and losses from property damage as discussed below. The Company assesses its portfolio of land held for both development and investment for impairment if the intent of the Company changes with respect to either the development of, or the expected holding period for, the land. During the year ended December 31, 2017, the Company recognized an impairment charge of $9,350,000 related to a land parcel the Company had acquired for development in 2004 and sold during 2017. During the year ended December 31, 2016, the Company recognized $10,500,000 of aggregate impairment charges related to three ancillary land parcels for which the Company has either sold or intends to sell. These charges were determined as the excess of the Company's carrying basis over the expected sales price for each parcel, and is included in casualty and impairment loss (gain), net on the accompanying Consolidated Statements of Comprehensive Income. The Company did not recognize any material impairment charges on its investment in land during the year ended December 31, 2015. The Company evaluates its unconsolidated investments for other than temporary impairment, considering both the extent and amount by which the carrying value of the investment exceeds the fair value, and the Company’s intent and ability to hold the investment to recover its carrying value. The Company also evaluates its proportionate share of any impairment of assets held by unconsolidated investments. There were no other than temporary impairment losses recognized by any of the Company's investments in unconsolidated real estate entities during the years ended December 31, 2017, 2016 or 2015. Casualty Gains and Losses In February 2017, a fire occurred at the Company's Avalon Maplewood Development Community, located in Maplewood, NJ, which was under construction and not yet occupied. The Company has commenced reconstruction of the damaged and destroyed portions of the community. See Note 7, “Commitments and Contingencies,” for additional discussion of the related casualty loss. During the year ended December 31, 2017, the Company recorded a casualty loss of $19,481,000 composed of a charge of $16,361,000 to write-off the net book value of the fixed assets destroyed in the Maplewood casualty loss and $3,120,000 for demolition and additional incident expenses. The casualty loss was partially offset by $17,143,000 of expected third-party property damage insurance proceeds. The net casualty loss of $2,338,000 for the year ended December 31, 2017 is included in casualty and impairment loss (gain), net on the accompanying Consolidated Statements of Comprehensive Income. During the year ended December 31, 2017, the Company reached a final insurance settlement for the property damage and lost income for the Maplewood casualty loss of $19,696,000, after self-insurance and deductibles, of which the Company recognized $3,495,000 as business interruption insurance proceeds. In January 2015, a fire occurred at the Company's Avalon at Edgewater apartment community located in Edgewater, NJ. Edgewater consisted of two residential buildings. One building, containing 240 apartment homes, was destroyed. The second building, containing 168 apartment homes, suffered minimal damage and has been repaired. See Note 7, “Commitments and Contingencies,” for discussion of the related legal matters. During the year ended December 31, 2016, the Company reached a final insurance settlement for the Company's property damage and lost income for the Edgewater casualty loss, for which it received aggregate insurance proceeds for Edgewater of $73,150,000, after self-insurance and deductibles, as discussed below. During the year ended December 31, 2015, the Company received $44,142,000 in insurance proceeds, which were partially offset by casualty charges of $21,844,000 to write off the net book value of the building destroyed by the fire at Edgewater, and $6,760,000 to record demolition and additional incident expenses, resulting in a net casualty gain of $15,538,000. During the year ended December 31, 2016, the Company received the final $29,008,000 of insurance proceeds, of which $8,702,000 was recognized as an additional net casualty gain and $20,306,000 as business interruption insurance proceeds. The Company reported the net casualty gains from each of the respective years as casualty and impairment loss (gain), net on the accompanying Consolidated Statements of Comprehensive Income, and reported the business interruption insurance proceeds as a component of rental and other income on the accompanying Consolidated Statements of Comprehensive Income. During the year ended December 31, 2015, several of the Company's communities in its Northeast markets incurred property and casualty damages from severe winter storms, for which the Company recorded an impairment due to a casualty loss of $4,195,000. During the year ended December 31, 2016, the Company recorded a net casualty gain related to the 2015 severe winter storms of $5,732,000, which is comprised of $8,493,000 in third-party insurance proceeds received, partially offset by incremental costs of $2,761,000. These amounts are included in casualty and impairment loss (gain), net on the accompanying Consolidated Statements of Comprehensive Income. A casualty loss may also result in lost operating income from one or more communities that is covered by the Company’s business interruption insurance policies. The Company recognizes income for amounts received under its business interruption insurance policies as a component of rental and other income in the Consolidated Statements of Comprehensive Income. Revenue is recognized upon resolution of all contingencies related to the receipt, typically upon written confirmation by the insurer or receipt of the actual proceeds. The Company recognized $3,498,000, $20,564,000 and $1,509,000 in income related business interruption insurance proceeds for the years ended December 31, 2017, 2016 and 2015, respectively. |
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Assets Held for Sale and Discontinued Operations | Assets Held for Sale and Discontinued Operations The Company presents the assets and liabilities of any communities which have been sold, or otherwise qualify as held for sale, separately in the Consolidated Balance Sheets. In addition, the results of operations for those assets that meet the definition of discontinued operations are presented as such in the accompanying Consolidated Statements of Comprehensive Income. Real estate assets held for sale are measured at the lower of the carrying amount or the fair value less the cost to sell. Both the real estate assets and corresponding liabilities are presented separately in the accompanying Consolidated Balance Sheets. Upon the classification of an asset as held for sale, no further depreciation is recorded. Disposals representing a strategic shift in operations (e.g., a disposal of a major geographic area, a major line of business or a major equity method investment) will be presented as discontinued operations, and for those assets qualifying for classification as discontinued operations, the specific components of net income presented as discontinued operations include net operating income, depreciation expense and interest expense, net. For periods prior to the asset qualifying for discontinued operations, the Company reclassifies the results of operations to discontinued operations. In addition, the net gain or loss (including any impairment loss) on the eventual disposal of assets held for sale will be presented as discontinued operations when recognized. A change in presentation for held for sale or discontinued operations has no impact on the Company's financial condition or results of operations. The Company combines the operating, investing and financing portions of cash flows attributable to discontinued operations with the respective cash flows from continuing operations on the accompanying Consolidated Statements of Cash Flows. The Company had no real estate that qualified as held for sale presentation at December 31, 2017. |
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Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Redeemable noncontrolling interests are comprised of potential future obligations of the Company, which allow the investors holding the noncontrolling interest to require the Company to purchase their interest. The Company classifies obligations under the redeemable noncontrolling interests at fair value, with a corresponding offset for changes in the fair value recorded in accumulated earnings less dividends. Reductions in fair value are recorded only to the extent that the Company has previously recorded increases in fair value above the redeemable noncontrolling interest's initial basis. The redeemable noncontrolling interests are presented outside of permanent equity as settlement in shares of the Company's common stock, where permitted, may not be within the Company's control. The nature and valuation of the Company's redeemable noncontrolling interests are discussed further in Note 11, “Fair Value. |
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Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company enters into interest rate swap and interest rate cap agreements (collectively, “Hedging Derivatives”) for interest rate risk management purposes and in conjunction with certain variable rate secured debt to satisfy lender requirements. The Company does not enter into Hedging Derivative transactions for trading or other speculative purposes. The Company assesses the effectiveness of qualifying cash flow and fair value hedges, both at inception and on an on-going basis. Hedge ineffectiveness is reported as a component of general and administrative expenses. The fair values of Hedging Derivatives that are in an asset position are recorded in prepaid expenses and other assets. The fair value of Hedging Derivatives that are in a liability position are included in accrued expenses and other liabilities. The Company does not present or disclose the fair value of Hedging Derivatives on a net basis. Fair value changes for derivatives that are not in qualifying hedge relationships are reported as a component of interest expense, net. For the Hedging Derivative positions that the Company has determined qualify as effective cash flow hedges, the Company has recorded the effective portion of cumulative changes in the fair value of Hedging Derivatives in other comprehensive income (loss). Amounts recorded in other comprehensive income (loss) will be reclassified into earnings in the periods in which earnings are affected by the hedged cash flow. The effective portion of the change in fair value of the Hedging Derivatives that the Company has determined qualified as effective fair value hedges is reported as an adjustment to the carrying amount of the corresponding debt being hedged. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
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Reclassifications | Reclassifications Certain reclassifications have been made to amounts in prior years' notes to financial statements to conform to current year presentations as a result of changes in held for sale classification and disposition activity. |
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Recently Issued and Adopted Accounting Standards and Change in Accounting Principle | Recently Issued and Adopted Accounting Standards In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU expands hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. This update also simplifies the application of hedge accounting guidance and eases the administrative burden of hedge documentation requirements and assessing hedge effectiveness. The guidance will be effective in the first quarter of 2019, allows for early adoption, and will be applied prospectively at adoption. The Company will adopt the guidance as of January 1, 2018 and does not believe it will have a material effect on the Company’s financial position or results of operations. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This ASU (i) clarifies the scope of the nonfinancial asset guidance and the derecognition of certain businesses and nonprofit activities, (ii) eliminates the exception in the financial asset guidance for transfers of investments (including equity method investments) in real estate entities and supersedes the guidance in the Exchanges of a Nonfinancial Asset for a Noncontrolling Ownership Interest and (iii) provides guidance on the accounting of partial sales of nonfinancial assets and contributions of nonfinancial assets to a joint venture or other noncontrolled investee. The new standard allows for either a retrospective or modified retrospective approach. The guidance will be effective in the first quarter of 2018 and allows for early adoption. The Company will adopt the new standard as of January 1, 2018 using the modified retrospective approach, applying the provisions to open contracts as of the date of adoption. See "Revenue and Gain Recognition" above for additional discussion of the impact of adopting the guidance. In November 2016, the FASB issued ASU 2016-18-Statement of Cash Flows (Topic 230): Restricted Cash, which requires statements of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new standard requires a retrospective approach. The guidance will be effective in the first quarter of 2018 and allows for early adoption. The Company adopted the guidance as of October 1, 2017 and it did not have a material effect on the Company’s financial position or results of operations. See discussion of the impact to the Company's Consolidated Statements of Cash Flows under "Change in Accounting Principle." In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses eight specific cash flow issues including debt prepayment or debt extinguishment costs, proceeds from the settlement of insurance claims, distributions received from equity method investees and separately identifiable cash flows and application of the predominance principle. The new standard requires a retrospective approach. The guidance will be effective in the first quarter of 2018 and allows for early adoption. The Company adopted this guidance as of January 1, 2017. The new standard did not have a material effect on the Company's Consolidated Statements of Cash Flows. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of share-based payment transactions, including income tax consequences, classification of awards as equity or liability, statement of cash flows classification and policy election options for forfeitures. The Company adopted this guidance as of January 1, 2017 which did not have a material effect on the Company's financial position, results of operations or earnings per share as discussed in "Earnings per Common Share." Upon adoption of the standard, the Company elected to account for forfeitures when they occur instead of estimating the forfeitures. See discussion of the impact to the Company's Consolidated Statements of Cash Flows under "Change in Accounting Principle." In February 2016, the FASB issued ASU 2016-02, Leases, amending the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The guidance will be effective in the first quarter of 2019 and allows for early adoption. The new standard requires a modified retrospective transition approach for all leases existing at the date of initial application, with an option to use certain transition relief. ASU 2016-02 provides for transition relief, which includes not electing to (i) reassess whether any expired or existing contract is a lease or contains a lease, (ii) reassess the lease classification of any expired or existing leases and (iii) expense any capitalized initial direct costs for any existing leases. The Company anticipates adoption of the standard to have a material impact on its financial position resulting from the recognition of the right to use asset and corresponding lease obligation for its long-term ground leases, currently accounted for as operating leases. The Company will continue to assess the impact of the new standard. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and in August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers-Deferral of the Effective Date, which defers the effective date of the new revenue recognition standard until the first quarter of 2018. Subsequently, the FASB has issued multiple ASUs clarifying ASU 2014-09 and ASU 2015-14. Under the new standard, revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. Revenue is generally recognized net of allowances and any taxes collected from customers and subsequently remitted to governmental authorities. The majority of the Company's revenue is derived from rental income, which is scoped out from this standard and will be accounted for under ASU 2016-02, Leases, discussed above. The Company's other revenue streams, which are being evaluated under this ASU, include but are not limited to management fees, non-recurring rental and non-rental related income, and gains and losses from real estate dispositions. The Company will adopt the new standard as of January 1, 2018 using the modified retrospective approach, applying the provisions to open contracts as of the date of adoption. See "Revenue and Gain Recognition" above for additional discussion of the impact of adopting the guidance. Change in Accounting Principle As of January 1, 2017, the Company adopted ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting, as discussed under "Recently Issued and Adopted Accounting Standards." The guidance requires payments related to tax withholding for share-based compensation to be presented separately as a financing activity on the Consolidated Statements of Cash Flows, and was adopted retrospectively. The prior period amounts that have been impacted by the new guidance and retrospectively adjusted include (i) an increase in accrued expenses, other liability and accrued interest payable (cash provided by operating activities) and (ii) payments related to tax withholding for share-based compensation (cash used in financing activities), located on the Consolidated Statements of Cash Flows. As of October 1, 2017, the Company adopted ASU 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash, as discussed under "Recently Issued and Adopted Accounting Standards." The guidance requires statements of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents, and was adopted retrospectively. The prior period amounts that have been impacted by the new guidance and retrospectively adjusted include (i) an increase in cash in operating escrows (cash provided by operating activities), (ii) an increase in cash in deposit escrows (cash provided by investing activities) and (iii) repayments of mortgage notes payable, including prepayment penalties (cash used in financing activities), located on the Consolidated Statements of Cash Flows. The following tables present the impact of the two changes in accounting principle to the Consolidated Statement of Cash Flows for the years ended December 31, 2016 and 2015 (dollars in thousands):
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Organization, Basis of Presentation, and Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of income from book basis to tax basis | The following reconciles net income attributable to common stockholders to taxable net income for the years ended December 31, 2017, 2016 and 2015 (unaudited, dollars in thousands):
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Schedule of tax components of the entity's common dividends declared | The following summarizes the tax components of the Company's common dividends declared for the years ended December 31, 2017, 2016 and 2015 (unaudited):
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Schedule of earnings per common share | The Company's earnings per common share are determined as follows (dollars in thousands, except per share data):
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Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following tables present the impact of the two changes in accounting principle to the Consolidated Statement of Cash Flows for the years ended December 31, 2016 and 2015 (dollars in thousands):
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Mortgage Notes Payable, Unsecured Notes and Credit Facility (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of company's mortgage notes payable, unsecured notes, term loan and credit facility | The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of December 31, 2017 and 2016, as shown on the Consolidated Balance Sheets (dollars in thousands) (see Note 6, “Real Estate Disposition Activities”).
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Scheduled payments and maturities of mortgage notes payable and unsecured notes outstanding | Scheduled payments and maturities of mortgage notes payable and unsecured notes outstanding at December 31, 2017 are as follows (dollars in thousands):
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Investments in Real Estate Entities (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Combined summary of the financial position of the entities accounted for using the equity method | The following is a combined summary of the financial position of the entities accounted for using the equity method as of the dates presented, excluding amounts associated with development joint ventures, the Residual JV and Legacy JV (dollars in thousands):
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Combined summary of the operating results of the entities accounted for using the equity method | The following is a combined summary of the operating results of the entities accounted for using the equity method, for the years presented, excluding amounts associated with development joint ventures, Avalon Clarendon, the Residual JV and Legacy JV (dollars in thousands):
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Equity in income of unconsolidated entities | The following is a summary of the Company's equity in income of unconsolidated real estate entities for the years presented (dollars in thousands):
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Real Estate Disposition Activities (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details regarding the real estate sales | Details regarding the real estate sales are summarized in the following table (dollars in thousands):
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Commitments and Contingencies (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Lease Payments Under Current Leases | The following table details the future minimum lease payments under the Company's current leases (dollars in thousands):
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Segment Reporting (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of NOI to net income | A reconciliation of NOI to net income for years ended December 31, 2017, 2016 and 2015 is as follows (dollars in thousands):
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Schedule of net operating income from real estate assets sold or held for sale, not classified as discontinued operations | The following is a summary of NOI from real estate assets sold or held for sale for the periods presented (dollars in thousands):
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Schedule of details of segment information |
_________________________________
|
Stock-Based Compensation Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of information with respect to stock options granted | Information with respect to stock options granted under the 2009 and 1994 Plans is as follows:
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Summary of exercise prices and contractual lives of options outstanding | The following summarizes the exercise prices and contractual lives of options outstanding as of December 31, 2017:
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Schedule of nonvested performance awards granted | Information with respect to performance awards granted is as follows:
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Schedule of restricted stock granted | Information with respect to restricted stock granted is as follows:
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Stock Options | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of valuation options | There were no stock options granted in 2017, 2016 and 2015. |
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Performance awards | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of valuation options | The Company used a Monte Carlo model to assess the compensation cost associated with the portion of the performance awards granted for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows:
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Fair Value (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of summary of consolidated hedging derivatives, excluding derivatives executed to hedge debt on communities classified as held for sale | The following table summarizes the consolidated derivative positions at December 31, 2017 (dollars in thousands):
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Summary of deferred losses reclassified from AOCI | The following table summarizes the deferred losses reclassified from accumulated other comprehensive income as a component of interest expense, net (dollars in thousands):
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Schedule of summary of classification between the three levels of the fair value hierarchy of the Company's financial instruments measured at fair value on a recurring basis | The following table summarizes the classification between the three levels of the fair value hierarchy of the Company's financial instruments measured/disclosed at fair value on a recurring basis (dollars in thousands):
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Quarterly Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | The following summary represents the unaudited quarterly results of operations for the years ended December 31, 2017 and 2016 (dollars in thousands, except per share data):
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Interest Capitalized (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Interest Capitalized | |||
Capitalized interest during the development and redevelopment of real estate assets | $ 64,420 | $ 78,872 | $ 79,834 |
Investments in Real Estate Entities (Details 2) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Assets: | ||
Real estate, net | $ 695,077 | $ 954,493 |
Other assets | 39,976 | 49,519 |
Total assets | 735,053 | 1,004,012 |
Liabilities and partners' capital: | ||
Mortgage notes payable, net and credit facility | 523,815 | 689,573 |
Other liabilities | 10,540 | 16,537 |
Partners' capital | 200,698 | 297,902 |
Total liabilities and partners' capital | $ 735,053 | $ 1,004,012 |
Commitments and Contingencies (Details 2) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Future minimum lease payments under the Company's current leases | ||
2018 | $ 22,124 | |
2019 | 22,139 | |
2020 | 19,858 | |
2021 | 21,242 | |
2022 | 21,139 | |
Thereafter | 1,096,784 | |
Operating Lease Obligations | ||
2018 | 21,051 | |
2019 | 21,064 | |
2020 | 18,781 | |
2021 | 20,162 | |
2022 | 20,057 | |
Thereafter | 1,052,808 | |
Capital lease obligations | ||
2018 | 1,073 | |
2019 | 1,075 | |
2020 | 1,077 | |
2021 | 1,080 | |
2022 | 1,082 | |
Thereafter | 43,976 | |
Imputed interest on capital leases | 25,961 | |
Capital Leased Assets, Gross | $ 19,737 | $ 39,015 |
Segment Reporting Segment Reporting (Details 2) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Segment Reporting [Abstract] | |||
Rental income from real estate assets sold or held for sale | $ 23,457 | $ 70,273 | $ 96,297 |
Operating expenses from real estate assets sold or held for sale | (8,884) | (26,010) | (36,914) |
Net operating income from real estate assets sold or held for sale | $ 14,573 | $ 44,263 | $ 59,383 |
Segment Reporting (Details 3) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Segment Reporting | |||||||||||
Total revenue | $ 555,292 | $ 550,500 | $ 530,512 | $ 522,326 | $ 518,240 | $ 516,211 | $ 502,307 | $ 508,498 | $ 2,158,628 | $ 2,045,255 | $ 1,856,028 |
NOI | $ 1,490,068 | $ 1,383,943 | $ 1,215,742 | ||||||||
% NOI change from prior year (percent) | 7.70% | 13.80% | 13.00% | ||||||||
Gross real estate | 21,935,936 | 20,755,780 | $ 21,935,936 | $ 20,755,780 | $ 19,228,571 | ||||||
Gross real estate assets held for sale | 20,846 | 20,846 | 39,528 | ||||||||
Gain on Business Interruption Insurance Recovery | 3,498 | 20,564 | 1,509 | ||||||||
Established | |||||||||||
Segment Reporting | |||||||||||
Real estate capitalized additions | 78,241 | 85,676 | 78,241 | 85,676 | 74,982 | ||||||
Operating segment | Established | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 1,575,260 | 1,502,974 | 1,315,929 | ||||||||
NOI | $ 1,112,472 | $ 1,057,997 | $ 929,944 | ||||||||
% NOI change from prior year (percent) | 2.50% | 4.80% | 6.00% | ||||||||
Gross real estate | 13,565,763 | 13,511,377 | $ 13,565,763 | $ 13,511,377 | $ 12,391,586 | ||||||
Operating segment | Established | New England | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 233,091 | 226,727 | 170,287 | ||||||||
NOI | $ 150,253 | $ 145,671 | $ 107,189 | ||||||||
% NOI change from prior year (percent) | 2.10% | 4.80% | 3.00% | ||||||||
Gross real estate | 1,852,676 | 1,888,524 | $ 1,852,676 | $ 1,888,524 | $ 1,460,746 | ||||||
Operating segment | Established | Metro NY/NJ | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 362,273 | 359,373 | 342,768 | ||||||||
NOI | $ 247,720 | $ 245,654 | $ 244,280 | ||||||||
% NOI change from prior year (percent) | 2.10% | 1.20% | 3.60% | ||||||||
Gross real estate | 3,069,690 | 3,212,220 | $ 3,069,690 | $ 3,212,220 | $ 3,152,361 | ||||||
Operating segment | Established | Mid-Atlantic | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 221,064 | 233,711 | 209,012 | ||||||||
NOI | $ 153,750 | $ 162,243 | $ 145,497 | ||||||||
% NOI change from prior year (percent) | 1.50% | 1.30% | 0.20% | ||||||||
Gross real estate | 2,056,066 | 2,339,395 | $ 2,056,066 | $ 2,339,395 | $ 2,177,823 | ||||||
Operating segment | Established | Pacific Northwest | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 84,189 | 72,475 | 67,900 | ||||||||
NOI | $ 61,527 | $ 52,434 | $ 48,833 | ||||||||
% NOI change from prior year (percent) | 6.30% | 7.40% | 8.50% | ||||||||
Gross real estate | 738,532 | 737,289 | $ 738,532 | $ 737,289 | $ 721,040 | ||||||
Operating segment | Established | Northern California | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 336,767 | 319,121 | 273,432 | ||||||||
NOI | $ 257,673 | $ 244,458 | $ 210,226 | ||||||||
% NOI change from prior year (percent) | 1.60% | 7.00% | 11.90% | ||||||||
Gross real estate | 2,830,963 | 2,661,258 | $ 2,830,963 | $ 2,661,258 | $ 2,414,184 | ||||||
Operating segment | Established | Southern California | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 337,876 | 291,567 | 252,530 | ||||||||
NOI | $ 241,549 | $ 207,537 | $ 173,919 | ||||||||
% NOI change from prior year (percent) | 3.90% | 9.10% | 9.40% | ||||||||
Gross real estate | 3,017,836 | 2,672,691 | $ 3,017,836 | $ 2,672,691 | $ 2,465,432 | ||||||
Operating segment | Other Stabilized | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 278,868 | 232,977 | 211,633 | ||||||||
NOI | 196,733 | 165,130 | 140,167 | ||||||||
Gross real estate | 3,189,393 | 2,330,503 | 3,189,393 | 2,330,503 | 2,040,269 | ||||||
Operating segment | Development / Redevelopment | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 276,896 | 233,432 | 222,222 | ||||||||
NOI | 180,863 | 160,816 | 145,631 | ||||||||
Gross real estate | 5,015,094 | 4,755,315 | 5,015,094 | 4,755,315 | 4,238,967 | ||||||
Segment Reconciling Items [Member] | |||||||||||
Segment Reporting | |||||||||||
Gross real estate | 68,364 | 84,293 | 68,364 | 84,293 | 484,377 | ||||||
Non-allocated | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 4,147 | 5,599 | 9,947 | ||||||||
Gross real estate | $ 97,322 | $ 74,292 | 97,322 | 74,292 | 73,372 | ||||||
Continuing Operations | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 2,135,171 | 1,974,982 | $ 1,759,731 | ||||||||
Avalon Maplewood [Member] | |||||||||||
Segment Reporting | |||||||||||
Gain on Business Interruption Insurance Recovery | $ 3,495 | ||||||||||
Avalon at Edgewater [Member] | |||||||||||
Segment Reporting | |||||||||||
Gain on Business Interruption Insurance Recovery | $ 20,306 |
Stock-Based Compensation Plans (Details 5) - Performance awards - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Dividend yield (as a percent) | 3.20% | 3.30% | 3.00% |
Estimated volatility, minimum (as a percent) | 15.30% | 15.20% | 12.00% |
Estimated volatility, maximum (as a percent) | 19.70% | 22.80% | 17.30% |
Risk-free interest rate, minimum (as a percent) | 0.69% | 0.44% | 0.07% |
Risk-free interest rate, maximum (as a percent) | 1.61% | 0.88% | 1.09% |
Estimated performance award value based on total shareholder return measure (in dollars per share) | $ 175.86 | $ 131.24 | $ 139.18 |
Historical volatility (as a percent) | 50.00% | 50.00% | 50.00% |
Implied volatility (as a percent) | 50.00% | 50.00% | 50.00% |
Market closing price (in dollars per share) | $ 179.07 | $ 161.66 | $ 166.23 |
Fair Value (Details 2) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Fair Value Disclosures [Abstract] | |||
Cash flow hedge losses reclassified to earnings | $ 7,070 | $ 6,433 | $ 5,774 |
Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 555,292 | $ 550,500 | $ 530,512 | $ 522,326 | $ 518,240 | $ 516,211 | $ 502,307 | $ 508,498 | $ 2,158,628 | $ 2,045,255 | $ 1,856,028 |
Net income | 237,486 | 238,199 | 165,194 | 235,781 | 242,183 | 356,329 | 197,319 | 237,877 | 876,660 | 1,033,708 | 741,733 |
Net income attributable to common stockholders | $ 237,573 | $ 238,248 | $ 165,225 | $ 235,875 | $ 242,235 | $ 356,392 | $ 197,444 | $ 237,931 | $ 876,921 | $ 1,034,002 | $ 742,038 |
Net income per common share - basic (in dollars per share) | $ 1.72 | $ 1.73 | $ 1.20 | $ 1.72 | $ 1.76 | $ 2.60 | $ 1.44 | $ 1.73 | $ 6.36 | $ 7.53 | $ 5.54 |
Net income per common share - diluted (in dollars per share) | $ 1.72 | $ 1.72 | $ 1.20 | $ 1.72 | $ 1.76 | $ 2.59 | $ 1.44 | $ 1.73 | $ 6.35 | $ 7.52 | $ 5.51 |
Subsequent Events (Details) - Subsequent event $ in Thousands |
1 Months Ended | 2 Months Ended |
---|---|---|
Feb. 23, 2018
USD ($)
|
Feb. 23, 2018
USD ($)
land_parcel
|
|
Subsequent events | ||
Number of Land Parcels Acquired | land_parcel | 4 | |
Payments to Acquire Land | $ 76,758 | |
Secured notes | Notes Payable Maturities 2043 [Member] | ||
Subsequent events | ||
Repayments of secured mortgages | $ 15,174 | |
Stated interest rate (as a percent) | 6.60% | 6.60% |
Prepayment Penalty | $ 152 |
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