EX-99.2 3 q22023ex-992.htm EX-99.2 Document

Exhibit 99.2
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For Immediate News Release
July 31, 2023

AVALONBAY COMMUNITIES, INC.
ANNOUNCES SECOND QUARTER 2023 OPERATING RESULTS
AND THIRD QUARTER AND FULL YEAR 2023 FINANCIAL OUTLOOK
(Arlington, VA) AvalonBay Communities, Inc. (NYSE: AVB) (the “Company”) reported Earnings per Share – diluted (“EPS”), Funds from Operations attributable to common stockholders - diluted (“FFO”) per share and Core FFO per share (as defined in this release) for the three and six months ended June 30, 2023 and 2022 as detailed below.
 Q2
2023
Q2 2022%
Change
EPS$2.59 $0.99 161.6 %
FFO per share (1)$2.67 $2.41 10.8 %
Core FFO per share (1)$2.66 $2.43 9.5 %
YTD
2023
YTD 2022%
Change
EPS$3.65 $2.86 27.6 %
FFO per share (1)$5.21 $4.65 12.0 %
Core FFO per share (1)$5.23 $4.69 11.5 %
(1) For additional detail on reconciling items between net income attributable to common stockholders, FFO and Core FFO, see Attachment 13, table 3.

The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the three months ended June 30, 2023 to its results for the prior year period:
Q2 2023 Results Compared to Q2 2022
Per Share
EPSFFOCore FFO
Q2 2022 per share reported results$0.99 $2.41 $2.43 
Same Store Residential NOI (1)0.16 0.16 0.16 
Development and Other Stabilized Residential NOI0.05 0.05 0.05 
Commercial NOI0.01 0.01 0.01 
Overhead and other 0.03 0.03 0.03 
Capital markets and transaction activity (0.01)(0.01)(0.03)
Unconsolidated investment income and management fees0.02 0.02 0.01 
Gain on sale of real estate and depreciation expense1.34 — — 
Q2 2023 per share reported results$2.59 $2.67 $2.66 
(1) Consists of increases of $0.27 in revenue and $0.11 in operating expenses.

The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the three months ended June 30, 2023 to its April 2023 outlook:
Q2 2023 Results Compared to April 2023 Outlook
Per Share
EPSFFOCore FFO
Projected per share (1)$2.53 $2.57 $2.59 
Same Store Residential revenue (2)0.05 0.05 0.05 
Development and Other Stabilized Residential NOI0.01 0.01 0.01 
Capital markets and transaction activity 0.01 0.01 — 
Unconsolidated investment income and management fees0.01 0.01 0.01 
Income taxes0.02 0.02 — 
Gain on sale of real estate and depreciation expense(0.04)— — 
Q2 2023 per share reported results$2.59 $2.67 $2.66 
(1) The mid-point of the Company's April 2023 outlook.
(2) Includes $0.03 of favorable uncollectible lease revenue.

The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the six months ended June 30, 2023 to its results for the prior year period:
YTD 2023 Results Compared to YTD 2022
Per Share
EPSFFOCore FFO
YTD 2022 per share reported results$2.86 $4.65 $4.69 
Same Store Residential NOI (1)0.45 0.45 0.45 
Development and Other Stabilized Residential NOI0.11 0.11 0.11 
Commercial NOI0.01 0.01 0.01 
Overhead and other (0.02)(0.02)(0.01)
Capital markets and transaction activity (0.01)(0.03)(0.04)
Unconsolidated investment income and management fees0.05 0.05 0.02 
Income taxes(0.01)(0.01)— 
Gain on sale of real estate and depreciation expense0.21 — — 
YTD 2023 per share reported results$3.65 $5.21 $5.23 
(1) Consists of increases of $0.65 in revenue and $0.20 in operating expenses.
Copyright © 2023 AvalonBay Communities, Inc. All Rights Reserved
1



Same Store Operating Results for the Three Months Ended June 30, 2023 Compared to the Prior Year Period

Same Store total revenue increased $37,062,000, or 6.2%, to $636,890,000. Same Store Residential rental revenue increased $37,080,000, or 6.3%, to $629,883,000, as detailed in the following table:

Same Store Residential Rental Revenue Change
Q2 2023 Compared to Q2 2022
Lease rates6.4 %
Concessions and other discounts0.5 %
Economic occupancy(0.4)%
Other rental revenue0.9 %
Uncollectible lease revenue (excluding rent relief) (1)1.1 %
Rent relief (2)(2.2)%
Residential rental revenue6.3 %
(1) Adjusting to remove the impact of rent relief, uncollectible lease revenue as a percentage of total Residential rental revenue decreased to 2.3% in Q2 2023 from 3.6% in Q2 2022. See Attachment 13, table 11 for further detail of uncollectible lease revenue for the Company’s Same Store portfolio.
(2) The Company recognized $2,441,000 and $15,683,000 from government rent relief programs during Q2 2023 and Q2 2022, respectively.

Same Store Residential operating expenses increased $14,769,000, or 8.2%, to $195,251,000 and Same Store Residential NOI increased $22,207,000, or 5.4%, to $435,057,000.

The following table presents percentage changes in Same Store Residential rental revenue, operating expenses and NOI for the three months ended June 30, 2023 compared to the three months ended June 30, 2022:

Q2 2023 Compared to Q2 2022
Same Store Residential
Rental Revenue
(1)
Opex
(2)
% of
Q2 2023 NOI
 NOI
New England8.7 %6.8 %9.5 %14.2 %
Metro NY/NJ8.6 %10.4 %7.7 %20.9 %
Mid-Atlantic6.9 %5.5 %7.5 %14.6 %
Southeast FL10.8 %3.7 %14.8 %2.7 %
Denver, CO5.6 %25.6 %(1.6)%1.1 %
Pacific NW4.6 %7.9 %3.4 %6.8 %
N. California5.8 %5.5 %5.9 %17.4 %
S. California2.3 %10.5 %(1.0)%21.4 %
Other Expansion Regions9.6 %16.4 %6.9 %0.9 %
   Total6.3 %8.2 %5.4 %100.0 %
(1) See Attachment 4, Quarterly Residential Rental Revenue and Occupancy Changes, for additional detail.
(2) See Attachment 7, Residential Operating Expenses ("Opex"), for discussion of variances.

Same Store Operating Results for the Six Months Ended June 30, 2023 Compared to the Prior Year Period

Same Store total revenue increased $90,722,000, or 7.7%, to $1,261,641,000. Same Store Residential rental revenue increased $90,737,000, or 7.8%, to $1,247,386,000, as detailed in the following table:

Same Store Residential Rental Revenue Change
YTD 2023 Compared to YTD 2022
Lease rates7.1 %
Concessions and other discounts0.9 %
Economic occupancy(0.3)%
Other rental revenue0.9 %
Uncollectible lease revenue (excluding rent relief) (1)1.3 %
Rent relief (2)(2.1)%
Residential rental revenue7.8 %
(1) Adjusting to remove the impact of rent relief, uncollectible lease revenue as a percentage of total Residential rental revenue decreased to 2.6% in YTD 2023 from 4.1% in YTD 2022. See Attachment 13, table 11 for further detail of uncollectible lease revenue for the Company’s Same Store portfolio.
(2) The Company recognized $5,474,000 and $29,851,000 from government rent relief programs during YTD 2023 and YTD 2022, respectively.

Same Store Residential operating expenses increased $27,547,000, or 7.7%, to $386,292,000 and Same Store Residential NOI increased $63,200,000, or 7.9%, to $861,996,000.

The following table presents percentage changes in Same Store Residential rental revenue, operating expenses and NOI for the six months ended June 30, 2023 compared to the six months ended June 30, 2022:

YTD 2023 Compared to YTD 2022
Same Store Residential
Rental Revenue
(1)
Opex
(2)
% of YTD
2023 NOI
 NOI
New England10.0 %6.2 %12.1 %14.0 %
Metro NY/NJ10.1 %9.7 %10.2 %21.0 %
Mid-Atlantic7.5 %3.9 %9.1 %14.7 %
Southeast FL13.9 %5.2 %19.1 %2.8 %
Denver, CO7.0 %22.8 %1.4 %1.1 %
Pacific NW7.5 %7.8 %7.3 %6.9 %
N. California7.2 %6.3 %7.5 %17.4 %
S. California4.3 %9.9 %2.0 %21.2 %
Other Expansion Regions11.6 %14.0 %10.9 %0.9 %
   Total7.8 %7.7 %7.9 %100.0 %
(1) See Attachment 6, Year to Date Residential Rental Revenue and Occupancy Changes, for additional detail.
(2) See Attachment 7, Residential Opex, for discussion of variances.


Copyright © 2023 AvalonBay Communities, Inc. All Rights Reserved
2



Development Activity

Consolidated Development Communities

During the three months ended June 30, 2023, the Company completed the development of two communities:

Avalon Harrison, located in Harrison, NY; and
Avalon Brighton, located in Boston, MA.

These communities contain an aggregate of 323 apartment homes and 27,000 square feet of commercial space and were developed for an aggregate Total Capital Cost of $184,000,000.

During the three months ended June 30, 2023, the Company started the development of Avalon Hunt Valley West, located in Hunt Valley, MD. Avalon Hunt Valley West is expected to contain 322 apartment homes when completed and be developed for an estimated Total Capital Cost of $109,000,000.

At June 30, 2023, the Company had 17 consolidated Development communities under construction that are expected to contain 5,761 apartment homes and 29,000 square feet of commercial space. Estimated Total Capital Cost at completion for these Development communities is $2,293,000,000.

Disposition Activity

Consolidated Apartment Communities

During the three months ended June 30, 2023, the Company sold two wholly-owned communities:

eaves Daly City, located in Daly City, CA; and
Avalon at Newton Highlands, located in Newton, MA.

In aggregate, these communities contain 489 apartment homes and were sold for $237,000,000 and a weighted average Initial Market Cap Rate of 4.5%, resulting in a gain in accordance with GAAP of $187,341,000 and an Economic Gain of $123,278,000.

In July 2023, the Company sold Avalon Columbia Pike, located in Arlington, VA. Avalon Columbia Pike contains 269 apartments homes and 27,000 square feet of commercial space and was sold for $105,000,000.

Structured Investment Program (the "SIP") Activity

In July 2023, the Company entered into an additional mezzanine loan commitment, agreeing to fund up to $20,900,000 of a multifamily development project in North Carolina. As of the date of this release, the Company had commitments to fund four mezzanine loans for the development of multifamily projects in the Company's markets, up to $113,275,000 in the aggregate. At the date of this release, the commitments had a weighted average rate of return of 10.4% and mature at various dates on or before July 2027. As of June 30, 2023, the Company had funded $55,869,000 of these commitments.

Liquidity and Capital Markets

As of June 30, 2023, the Company did not have any borrowings outstanding under its $2,250,000,000 unsecured revolving credit facility (the "Credit Facility") or its $500,000,000 unsecured commercial paper note program. The commercial paper program is backstopped by the Company's commitment to maintain available borrowing capacity under its Credit Facility in an amount equal to actual borrowings under the program.

In addition, at June 30, 2023, the Company had $769,622,000 in unrestricted cash and cash equivalents and $177,376,000 in cash in escrow, which is composed of principal reserve funds for secured borrowing arrangements as well as proceeds from a disposition held in escrow for subsequent tax deferred exchange activity.

The Company’s annualized Net Debt-to-Core EBITDAre (as defined in this release) for the second quarter of 2023 was 4.1 times and Unencumbered NOI (as defined in this release) for the six months ended June 30, 2023 was 95%.

During the six months ended June 30, 2023, the Company repaid $250,000,000 principal amount of its 2.85% unsecured notes at its maturity.

During the three months ended June 30, 2023, the Company settled the outstanding equity forward contracts entered into in April 2022 (the "Equity Forward"), issuing 2,000,000 shares of common stock for $491,912,000, or $245.96 per share, net of offering fees and discounts.

Stock Repurchase Program

Under the Company's stock repurchase program, during the six months ended June 30, 2023, the Company repurchased 11,800 shares of its common stock at an average price of $161.96 per share.
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3



Legal Update

In 2022 and early 2023, the Company was named as a defendant in cases alleging antitrust violations by RealPage, Inc. and owners and/or operators of multifamily housing which utilize revenue management systems provided by RealPage, Inc. The complaints allege a conspiracy to artificially inflate rental rates for multifamily residential real estate above competitive levels. The Company recently engaged with the plaintiffs’ counsel to explain why it believes these cases are without merit as they pertain to the Company. Following these discussions, the plaintiffs filed a notice of voluntary dismissal in July 2023, which resulted in the Company being dismissed without prejudice from these cases.

Third Quarter and Full Year 2023 Financial Outlook

For its third quarter and full year 2023 financial outlook, the Company expects the following:
Projected EPS, Projected FFO and Projected Core FFO Outlook (1)
 Q3 2023Full Year 2023
 LowHighLowHigh
Projected EPS $1.22 $1.32 $6.83 $7.03 
Projected FFO per share $2.50 $2.60 $10.37 $10.57 
Projected Core FFO per share$2.55 $2.65 $10.46 $10.66 
(1) See Attachment 13, table 9, for reconciliations of Projected FFO per share and Projected Core FFO per share to Projected EPS.
Full Year Financial Outlook
Full Year 2023
vs. Full Year 2022
LowHigh
Same Store:
Residential revenue change5.5%6.5%
Residential Opex change6.0%7.0%
Residential NOI change5.25%6.75%

The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the second quarter 2023 to the mid-point of its third quarter 2023 financial outlook:

Q2 2023 Results Compared to Q3 2023 Outlook
Per Share
EPSFFOCore FFO
Q2 2023 per share reported results $2.59 $2.67 $2.66 
Same Store Residential revenue0.03 0.03 0.03 
Same Store Residential Opex(0.07)(0.07)(0.07)
Development and Other Stabilized Residential NOI0.01 0.01 0.01 
Overhead and other(0.04)(0.04)(0.01)
Capital markets and transaction activity(0.03)(0.03)(0.02)
Unconsolidated investment income and management fees(0.02)(0.02)— 
Gain on sale of real estate and depreciation expense(1.20)— — 
Projected per share - Q3 2023 outlook (1)$1.27 $2.55 $2.60 
(1) Represents the mid-point of the Company's outlook.

The following table compares the mid-point of the Company’s July 2023 outlook for EPS, FFO per share and Core FFO per share for the full year 2023 to its April 2023 financial outlook:

July 2023 Full Year Outlook Compared
to April 2023 Full Year Outlook
Per Share
EPSFFOCore FFO
Projected per share - April 2023 outlook (1)$5.89 $10.30 $10.41 
Same Store Residential revenue0.17 0.17 0.17 
Same Store Residential Opex(0.03)(0.03)(0.03)
Development and Other Stabilized Residential NOI0.02 0.02 0.02 
Overhead and other(0.07)(0.07)(0.03)
Capital markets and transaction activity0.01 0.01 0.01 
Unconsolidated investment income and management fees0.03 0.03 0.01 
Income tax expense0.04 0.04 — 
Gain on sale of real estate and depreciation expense0.87 — — 
Projected per share - July 2023 outlook (1)$6.93 $10.47 $10.56 
(1) Represents the mid-point of the Company's outlook.

Other Matters

The Company will hold a conference call on August 1, 2023 at 1:00 PM ET to review and answer questions about this release, its second quarter 2023 results, the Attachments (described below) and related matters. To participate on the call, dial 877-407-9716.

To hear a replay of the call, which will be available from August 1, 2023 at 4:00 PM ET to September 1, 2023, dial 844-512-2921 and use replay passcode: 13734360. A webcast of the conference call will also be available at https://investors.avalonbay.com, and an online playback of
Copyright © 2023 AvalonBay Communities, Inc. All Rights Reserved
4



the webcast will be available for at least seven days following the call.

The Company produces Earnings Release Attachments (the "Attachments") that provide detailed information regarding operating, development, redevelopment, disposition and acquisition activity. These Attachments are considered a part of this earnings release and are available in full with this earnings release via the Company's website at https://investors.avalonbay.com. To receive future press releases via e-mail, please submit a request through https://investors.avalonbay.com/email_notification.

In addition to the Attachments, the Company is providing a teleconference presentation that will be available on the Company's website at https://investors.avalonbay.com subsequent to this release and before the market opens on August 1, 2023.

About AvalonBay Communities, Inc.

As of June 30, 2023, the Company owned or held a direct or indirect ownership interest in 294 apartment communities containing 88,659 apartment homes in 12 states and the District of Columbia, of which 18 communities were under development and one community was under redevelopment. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. More information may be found on the Company’s website at https://www.avalonbay.com. For additional information, please contact Jason Reilley, Vice President of Investor Relations, at 703-317-4681.

Forward-Looking Statements

This release, including its Attachments, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, which you can identify by the Company’s use of words such as “expects,” “plans,” “estimates,” “anticipates,” “projects,” “intends,” “believes,” “outlook,” "may," "shall," "will," "pursue" and similar expressions that predict or indicate future events and trends and that do not report historical matters, are based on the Company’s expectations, forecasts and assumptions at the time of this release, which may not be realized and involve
risks and uncertainties that cannot be predicted accurately or that might not be anticipated. These could cause actual results, performance or achievements to differ materially from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements. Risks and uncertainties that might cause such differences include the following: we may abandon development or redevelopment opportunities for which we have already incurred costs; adverse capital and credit market conditions, including rising interest rates, may affect our access to various sources of capital and/or cost of capital, which may affect our business activities, earnings and common stock price, among other things; changes in local employment conditions, demand for apartment homes, supply of competitive housing products, landlord-tenant laws, including the adoption of rent control regulations, and other economic or regulatory conditions may result in lower than expected occupancy and/or rental rates and adversely affect the profitability of our communities; delays in completing development, redevelopment and/or lease-up, and general price inflation, may result in increased financing and construction costs and may delay and/or reduce the profitability of a community; debt and/or equity financing for development, redevelopment or acquisitions of communities may not be available or may not be available on favorable terms; we may be unable to obtain, or experience delays in obtaining, necessary governmental permits and authorizations; expenses may result in communities that we develop or redevelop failing to achieve expected profitability; our assumptions concerning risks relating to joint ventures and our ability to successfully dispose of certain assets may not be realized; investments made under the SIP in either mezzanine debt or preferred equity of third-party multifamily development may not be repaid as expected; our assumptions and expectations in our financial outlook may prove to be too optimistic; litigation costs and consequences may exceed our expectations; and risks related to an outbreak of disease or other public health event may affect the multifamily industry and general economy, including from measures taken by businesses and the government and the preferences of consumers and businesses for living and working arrangements both during and after such an event. Additional discussions of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements appear in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 under the heading “Risk Factors” and under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Forward-
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5



Looking Statements” and in subsequent quarterly reports on Form 10-Q.

The Company does not undertake a duty to update forward-looking statements, including its expected 2023 operating results and other financial data forecasts contained in this release. The Company may, in its discretion, provide information in future public announcements regarding its outlook that may be of interest to the investment community. The format and extent of future outlooks may be different from the format and extent of the information contained in this release.
 
Definitions and Reconciliations

Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined, reconciled and further explained on Attachment 13, Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. Attachment 13 is included in the full earnings release available at the Company’s website at https://investors.avalonbay.com.

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er-q2x2023.jpg
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 SECOND QUARTER 2023
 
Supplemental Operating and Financial Data
 
Table of Contents
 
Company Profile  
Condensed Consolidated Operating Information..........................................................................................................Attachment 1
Condensed Consolidated Balance Sheets....................................................................................................................Attachment 2
Sequential Operating Information.................................................................................................................................Attachment 3
  
Market Profile - Same Store  
Quarterly Residential Rental Revenue and Occupancy Changes................................................................................Attachment 4
Sequential Quarterly Residential Rental Revenue and Occupancy Changes..............................................................Attachment 5
Year to Date Residential Rental Revenue and Occupancy Changes...........................................................................Attachment 6
Residential Operating Expenses ("Opex")....................................................................................................................Attachment 7
  
Development, Joint Venture and Debt Profile  
Expensed Community Maintenance Costs and Capitalized Community Expenditures................................................Attachment 8
Development Communities...........................................................................................................................................Attachment 9
Unconsolidated Real Estate Investments.....................................................................................................................Attachment 10
Debt Structure and Select Debt Metrics........................................................................................................................Attachment 11
Financial Outlook
2023 Financial Outlook.................................................................................................................................................Attachment 12
Definitions and Reconciliations  
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms...................................................Attachment 13

 
The following is a "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The projections and estimates contained in the following attachments, including but not limited to Attachments 9, 10, 12 and 13 contain forward-looking statements that involve risks and uncertainties, and actual results may differ materially from those projected in such statements. Risks associated with the Company's development, redevelopment, construction, and lease-up activities which could impact the forward-looking statements are discussed in the paragraph titled "Forward-Looking Statements" in the release that accompanies, and should be read in conjunction with, these attachments. These and other risks are also described in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and the Company's Quarterly Reports on Form 10-Q for subsequent quarters, and could cause actual results to differ materially from such projections and estimates.
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Attachment 1
AvalonBay Communities, Inc.
Condensed Consolidated Operating Information (1)
June 30, 2023
(Dollars in thousands except per share data)
(unaudited)
Q2Q2YTDYTD
20232022% Change20232022% Change
Revenue:   
Rental and other income$688,148 $643,655 6.9 %$1,361,791 $1,256,830 8.4 %
Management, development and other fees2,712 904 200.0 %3,778 1,656 128.1 %
Total690,860 644,559 7.2 %1,365,569 1,258,486 8.5 %
Operating expenses:
Direct property operating expenses, excluding property taxes138,163 124,848 10.7 %271,144 247,309 9.6 %
Property taxes74,987 70,865 5.8 %149,483 141,603 5.6 %
Total community operating expenses213,150 195,713 8.9 %420,627 388,912 8.2 %
Property management and other indirect operating expenses(31,685)(31,541)0.5 %(63,536)(60,392)5.2 %
Expensed transaction, development and other pursuit costs, net of recoveries(1,261)(2,364)(46.7)%(4,253)(3,351)26.9 %
Interest expense, net (2)(51,585)(58,797)(12.3)%(108,406)(115,323)(6.0)%
Depreciation expense(200,546)(199,302)0.6 %(405,289)(401,088)1.0 %
General and administrative expense(17,676)(21,291)(17.0)%(38,076)(38,712)(1.6)%
Casualty loss— — — %(5,051)— (100.0)%
Income from unconsolidated investments4,970 2,480 100.4 %9,815 2,797 250.9 %
Gain on sale of communities187,322 404 N/A187,309 149,204 25.5 %
Other real estate activity341 (28)N/A470 245 91.8 %
Income before income taxes367,590 138,407 165.6 %517,925 402,954 28.5 %
Income tax benefit (expense)217 159 36.5 %(3,343)(2,312)44.6 %
Net income367,807 138,566 165.4 %514,582 400,642 28.4 %
Net loss attributable to noncontrolling interests 116 125 (7.2)%243 93 161.3 %
Net income attributable to common stockholders$367,923 $138,691 165.3 %$514,825 $400,735 28.5 %
Net income attributable to common stockholders per common share - basic$2.59 $0.99 161.6 %$3.65 $2.87 27.2 %
Net income attributable to common stockholders per common share - diluted$2.59 $0.99 161.6 %$3.65 $2.86 27.6 %
FFO$379,811 $336,792 12.8 %$735,069 $650,700 13.0 %
Per common share - diluted$2.67 $2.41 10.8 %$5.21 $4.65 12.0 %
Core FFO$378,182 $340,025 11.2 %$738,152 $656,948 12.4 %
Per common share - diluted$2.66 $2.43 9.5 %$5.23 $4.69 11.5 %
Dividends declared - common$234,773 $222,772 5.4 %$466,211 $445,526 4.6 %
Per common share$1.65 $1.59 3.8 %$3.30 $3.18 3.8 %
Average shares and participating securities outstanding - basic142,028,911 139,879,013 1.5 %141,025,084 139,858,967 0.8 %
Average shares outstanding - diluted142,124,117 139,934,478 1.6 %141,073,964 139,955,280 0.8 %
Total outstanding common shares and operating partnership units142,014,755 139,837,396 1.6 %142,014,755 139,837,396 1.6 %
(1)For detail of non-Core items which are included in this attachment, see in Attachment 13 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 3.
(2)Amounts include $8,261 and $13,413 of interest income on cash and cash in escrow for the three and six months ended June 30, 2023, respectively, and $123 and $101 of interest income on cash and cash in escrow for the three and six months ended June 30, 2022, respectively.
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Attachment 2
 
AvalonBay Communities, Inc.
Condensed Consolidated Balance Sheets
June 30, 2023
(Dollars in thousands)
(unaudited)
 
 June 30,December 31,
 20232022
Real estate$24,775,492 $24,619,616 
Less accumulated depreciation(7,193,053)(6,878,556)
Net operating real estate17,582,439 17,741,060 
Construction in progress, including land1,202,977 1,072,543 
Land held for development195,115 179,204 
Real estate assets held for sale, net81,047 — 
Total real estate, net19,061,578 18,992,807 
Cash and cash equivalents769,622 613,189 
Cash in escrow (1)177,376 121,056 
Resident security deposits39,027 36,815 
Unconsolidated investments216,533 212,084 
Other assets542,061 481,813 
Total assets$20,806,197 $20,457,764 
Unsecured notes, net$7,355,693 $7,602,305 
Unsecured credit facility and commercial paper— — 
Notes payable, net707,006 713,740 
Resident security deposits65,070 63,700 
Other liabilities861,350 821,781 
Total liabilities8,989,119 9,201,526 
Redeemable noncontrolling interests1,513 2,685 
Equity11,815,565 11,253,553 
Total liabilities and equity$20,806,197 $20,457,764 

(1)
Amount at June 30, 2023 includes $57,848 related to proceeds from a disposition held in escrow for subsequent tax deferred exchange activity.

10



Attachment 3
AvalonBay Communities, Inc.
Sequential Operating Information (1)
June 30, 2023
(Dollars in thousands, except per home data)
(unaudited)
Total Apartment
Homes
Quarter Ended
June 30, 2023
Quarter Ended
March 31, 2023
Quarter Ended
December 31, 2022
Residential Rental Revenue (2)  
Same Store74,955 $629,883 $617,503 $610,878 
Other Stabilized (3)3,743 27,833 27,401 26,620 
Development/Redevelopment (4)6,970 12,733 10,326 8,858 
Commercial Rental Revenue (2)N/A10,175 10,244 10,769 
     Total Rental Revenue85,668 $680,624 $665,474 $657,125 
Residential Operating Expense
Same Store$195,251 $191,041 $185,105 
Other Stabilized (3)8,764 8,210 6,752 
Development/Redevelopment5,006 4,242 3,386 
Commercial Operating Expense1,646 1,679 1,611 
Total Operating Expense$210,667 $205,172 $196,854 
Residential NOI
Same Store$435,057 $426,939 $426,296 
Other Stabilized (3)19,701 19,765 20,237 
Development/Redevelopment7,733 6,092 5,480 
Commercial NOI8,529 8,565 9,158 
Total NOI$471,020 $461,361 $461,171 
Same Store Average Rental Revenue per Occupied Home (5)$2,920 $2,858 $2,835 
Same Store Economic Occupancy95.9 %96.1 %95.8 %
Same Store Turnover (6)
Current year period / Prior year period49.8% / 47.4%37.2% / 35.9%39.3% / 37.8%
Current year period YTD / Prior year period YTD43.5% / 41.7%44.6% / 46.2%
SAME STORE LIKE-TERM EFFECTIVE RENT CHANGE
April 2023May 2023June 2023Q2 2023July 2023 (8)
  New England6.8 %6.0 %5.3 %6.0 %4.1 %
  Metro NY/NJ4.7 %5.6 %6.3 %5.7 %5.4 %
  Mid-Atlantic4.1 %4.2 %5.4 %4.7 %5.3 %
  Southeast FL5.0 %4.2 %2.4 %3.7 %0.9 %
  Denver, CO2.7 %4.4 %5.1 %4.2 %2.5 %
  Pacific NW4.4 %3.6 %1.3 %3.0 %(0.2)%
  N. California3.6 %3.1 %3.1 %3.2 %2.3 %
  S. California5.2 %5.1 %5.3 %5.2 %4.2 %
  Other Expansion Regions(1.2)%(0.7)%3.8 %0.7 %0.6 %
     Total4.9 %4.8 %4.9 %4.8 %(7)4.0 %(7)
(1)Includes consolidated communities and excludes communities that have been sold or that are classified as held for sale. See Attachment 13 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms for the definition of capitalized terms.
(2)Rental revenue excludes non-qualified REIT income.
(3)Results for these communities prior to January 1, 2023 may reflect operations prior to stabilization, including lease-up, such that occupancy is not stabilized.
(4)For per home rent projections and Economic Occupancy for Development communities currently under construction, see Attachment 9 - Development Communities.
(5)Reflects the effect of Residential concessions amortized over the average lease term and includes uncollectible lease revenue and revenue from government rent relief programs.
(6)Turnover is the annualized number of units turned over during the period, divided by the total number of Same Store apartment homes for the respective period, and excludes any third-party managed communities.
(7)For the three months ended June 30, 2023, New Move-In Like-Term Effective Rent Change was 4.0% and Renewal Like-Term Effective Rent Change was 5.6%. New Move-In Like-Term Effective Rent Change was 2.8% and Renewal Like-Term Effective Rent Change was 5.0% for July 1, 2023 to July 26, 2023.
(8)Rent change percentage for activity in July 2023 through July 26, 2023.
11



Attachment 4
AvalonBay Communities, Inc.
Quarterly Residential Rental Revenue and Occupancy Changes - Same Store
June 30, 2023
(unaudited)
 Apartment HomesAverage Monthly Rental Revenue
Per Occupied Home
Economic OccupancyResidential Rental Revenue ($000s)(1)
% Change Excluding
Rent Relief (2)
  Q2 23Q2 22% ChangeQ2 23Q2 22% ChangeQ2 23Q2 22% Change
          
  New England9,577 $3,292 $3,000 9.7 %96.5 %97.5 %(1.0)%$91,252 $83,971 8.7 %9.9 %
  Metro NY/NJ
     New York City, NY3,788 4,004 3,609 10.9 %96.4 %97.3 %(0.9)%43,860 39,883 10.0 %10.4 %
     New York - Suburban3,792 3,505 3,302 6.1 %94.5 %95.2 %(0.7)%37,666 35,752 5.4 %5.0 %
     New Jersey5,415 3,259 2,966 9.9 %96.2 %96.3 %(0.1)%50,938 46,390 9.8 %10.0 %
  Metro NY/NJ12,995 3,548 3,251 9.1 %95.8 %96.3 %(0.5)%132,464 122,025 8.6 %8.7 %
  Mid-Atlantic
     Washington DC2,626 2,597 2,431 6.8 %93.5 %93.2 %0.3 %19,134 17,858 7.1 %7.1 %
     Northern Virginia5,763 2,510 2,353 6.7 %96.3 %96.0 %0.3 %41,799 39,076 7.0 %7.6 %
     Suburban Maryland2,595 2,209 2,082 6.1 %96.0 %96.0 %0.0 %16,505 15,552 6.1 %6.5 %
     Baltimore, MD2,317 2,159 2,016 7.1 %96.5 %96.2 %0.3 %14,477 13,483 7.4 %7.2 %
  Mid-Atlantic13,301 2,408 2,258 6.6 %95.7 %95.4 %0.3 %91,915 85,969 6.9 %7.2 %
  Southeast FL2,187 2,906 2,652 9.6 %96.2 %95.0 %1.2 %18,351 16,566 10.8 %12.0 %
  Denver, CO1,086 2,245 2,119 5.9 %96.2 %96.5 %(0.3)%7,036 6,661 5.6 %6.5 %
  Pacific Northwest5,474 2,688 2,545 5.6 %95.0 %96.0 %(1.0)%41,944 40,082 4.6 %5.1 %
  Northern California
     San Jose, CA4,723 2,996 2,812 6.5 %96.6 %96.5 %0.1 %40,982 38,448 6.6 %8.4 %
     Oakland - East Bay, CA4,338 2,756 2,631 4.8 %96.0 %96.0 %0.0 %34,435 32,861 4.8 %7.5 %
     San Francisco, CA3,072 3,433 3,258 5.4 %96.0 %95.5 %0.5 %30,363 28,681 5.9 %8.2 %
  Northern California12,133 3,021 2,859 5.7 %96.2 %96.1 %0.1 %105,780 99,990 5.8 %8.0 %
  Southern California
     Los Angeles, CA12,139 2,715 2,675 1.5 %95.7 %96.6 %(0.9)%94,630 94,091 0.6 %10.4 %
     Orange County, CA3,371 2,710 2,556 6.0 %96.4 %96.6 %(0.2)%26,417 24,962 5.8 %10.6 %
     San Diego, CA1,767 2,804 2,560 9.5 %96.5 %97.7 %(1.2)%14,347 13,242 8.3 %9.9 %
  Southern California17,277 2,723 2,640 3.1 %95.9 %96.7 %(0.8)%135,394 132,295 2.3 %10.4 %
  Other Expansion Regions925 2,177 1,975 10.2 %95.1 %95.7 %(0.6)%5,747 5,244 9.6 %9.6 %
        Total Same Store74,955 $2,920 $2,737 6.7 %95.9 %96.3 %(0.4)%$629,883 $592,803 6.3 %8.7 %
(1) Reflects Residential concessions amortized over the average lease term and includes uncollectible lease revenue and revenue from government rent relief programs. Residential Rental Revenue with Concessions on a Cash Basis
for the Company's Same Store portfolio was 5.6%. See Attachment 13, table 10.
(2) Represents the change in Residential Rental Revenue adjusted to remove the impact of governmental rent relief in the periods presented. See Attachment 13, table 11 for further detail of uncollectible lease revenue and government
rent relief for the Company's Same Store portfolio.
12



Attachment 5
AvalonBay Communities, Inc.
Sequential Quarterly Residential Rental Revenue and Occupancy Changes - Same Store
June 30, 2023
(unaudited)
 Apartment HomesAverage Monthly Rental Revenue
Per Occupied Home
Economic OccupancyResidential Rental Revenue ($000s)(1)
% Change Excluding
Rent Relief (2)
  Q2 23Q1 23% ChangeQ2 23Q1 23% ChangeQ2 23Q1 23% Change
          
  New England9,577 $3,292 $3,219 2.3 %96.5 %96.6 %(0.1)%$91,252 $89,308 2.2 %2.2 %
  Metro NY/NJ
     New York City, NY3,788 4,004 3,963 1.0 %96.4 %96.9 %(0.5)%43,860 43,637 0.5 %0.4 %
     New York - Suburban3,792 3,505 3,470 1.0 %94.5 %94.8 %(0.3)%37,666 37,416 0.7 %1.4 %
     New Jersey5,415 3,259 3,187 2.3 %96.2 %96.2 %0.0 %50,938 49,799 2.3 %2.6 %
  Metro NY/NJ12,995 3,548 3,498 1.4 %95.8 %96.0 %(0.2)%132,464 130,852 1.2 %1.5 %
  Mid-Atlantic
     Washington DC2,626 2,597 2,559 1.5 %93.5 %93.6 %(0.1)%19,134 18,867 1.4 %1.4 %
     Northern Virginia5,763 2,510 2,464 1.9 %96.3 %95.7 %0.6 %41,799 40,792 2.5 %2.4 %
     Suburban Maryland2,595 2,209 2,148 2.8 %96.0 %96.3 %(0.3)%16,505 16,101 2.5 %2.5 %
     Baltimore, MD2,317 2,159 2,063 4.7 %96.5 %95.7 %0.8 %14,477 13,720 5.5 %4.3 %
  Mid-Atlantic13,301 2,408 2,352 2.4 %95.7 %95.4 %0.3 %91,915 89,480 2.7 %2.5 %
  Southeast FL2,187 2,906 2,888 0.6 %96.2 %97.3 %(1.1)%18,351 18,441 (0.5)%(0.3)%
  Denver, CO1,086 2,245 2,208 1.7 %96.2 %95.1 %1.1 %7,036 6,846 2.8 %3.0 %
  Pacific Northwest5,474 2,688 2,646 1.6 %95.0 %95.4 %(0.4)%41,944 41,456 1.2 %1.4 %
  Northern California
     San Jose, CA4,723 2,996 2,945 1.7 %96.6 %96.8 %(0.2)%40,982 40,373 1.5 %1.5 %
     Oakland - East Bay, CA4,338 2,756 2,691 2.4 %96.0 %96.3 %(0.3)%34,435 33,713 2.1 %2.3 %
     San Francisco, CA3,072 3,433 3,405 0.8 %96.0 %96.0 %0.0 %30,363 30,128 0.8 %1.1 %
  Northern California12,133 3,021 2,970 1.7 %96.2 %96.4 %(0.2)%105,780 104,214 1.5 %1.6 %
  Southern California
     Los Angeles, CA12,139 2,715 2,616 3.8 %95.7 %96.3 %(0.6)%94,630 91,727 3.2 %3.3 %
     Orange County, CA3,371 2,710 2,655 2.1 %96.4 %95.7 %0.7 %26,417 25,700 2.8 %3.2 %
     San Diego, CA1,767 2,804 2,689 4.3 %96.5 %96.9 %(0.4)%14,347 13,809 3.9 %3.8 %
  Southern California17,277 2,723 2,632 3.5 %95.9 %96.2 %(0.3)%135,394 131,236 3.2 %3.3 %
  Other Expansion Regions925 2,177 2,143 1.6 %95.1 %95.3 %(0.2)%5,747 5,670 1.4 %1.4 %
        Total Same Store74,955 $2,920 $2,858 2.2 %95.9 %96.1 %(0.2)%$629,883 $617,503 2.0 %2.1 %
(1) Reflects Residential concessions amortized over the average lease term and includes uncollectible lease revenue and revenue from government rent relief programs. Residential Rental Revenue with Concessions on a Cash Basis
for the Company's Same Store portfolio was 2.2%. See Attachment 13, table 10.
(2) Represents the change in Residential Rental Revenue adjusted to remove the impact of governmental rent relief in the periods presented. See Attachment 13, table 11 for further detail of uncollectible lease revenue and government
rent relief for the Company's Same Store portfolio.
13



Attachment 6
AvalonBay Communities, Inc.
Year to Date Residential Rental Revenue and Occupancy Changes - Same Store
June 30, 2023
(unaudited)
 Apartment HomesAverage Monthly Rental Revenue
Per Occupied Home
Economic OccupancyResidential Rental Revenue ($000s)(1)
% Change Excluding
Rent Relief (2)
 YTD 2023YTD 2022% ChangeYTD 2023YTD 2022% ChangeYTD 2023YTD 2022% Change
  New England9,577 $3,256 $2,938 10.8 %96.5 %97.3 %(0.8)%$180,559 $164,074 10.0 %11.4 %
  Metro NY/NJ
     New York City, NY3,788 3,983 3,533 12.7 %96.7 %97.2 %(0.5)%87,497 77,991 12.2 %12.8 %
     New York - Suburban3,792 3,488 3,262 6.9 %94.6 %95.5 %(0.9)%75,082 70,835 6.0 %5.6 %
     New Jersey5,415 3,223 2,880 11.9 %96.2 %96.6 %(0.4)%100,737 90,360 11.5 %11.7 %
  Metro NY/NJ12,995 3,522 3,184 10.6 %95.9 %96.4 %(0.5)%263,316 239,186 10.1 %10.3 %
  Mid-Atlantic
     Washington DC2,626 2,579 2,382 8.3 %93.5 %93.9 %(0.4)%38,001 35,232 7.9 %8.1 %
     Northern Virginia5,763 2,488 2,306 7.9 %96.0 %95.9 %0.1 %82,591 76,485 8.0 %8.5 %
     Suburban Maryland2,595 2,178 2,059 5.8 %96.1 %95.8 %0.3 %32,606 30,735 6.1 %6.7 %
     Baltimore, MD2,317 2,111 1,981 6.6 %96.1 %95.5 %0.6 %28,196 26,311 7.2 %7.6 %
  Mid-Atlantic13,301 2,380 2,217 7.4 %95.5 %95.4 %0.1 %181,394 168,763 7.5 %8.0 %
  Southeast FL2,187 2,897 2,567 12.9 %96.8 %95.8 %1.0 %36,792 32,288 13.9 %15.9 %
  Denver, CO1,086 2,228 2,074 7.4 %95.6 %96.0 %(0.4)%13,881 12,975 7.0 %7.6 %
  Pacific Northwest5,474 2,667 2,464 8.2 %95.2 %95.9 %(0.7)%83,400 77,586 7.5 %7.8 %
  Northern California
     San Jose, CA4,723 2,969 2,747 8.1 %96.7 %96.5 %0.2 %81,357 75,111 8.3 %9.7 %
     Oakland - East Bay, CA4,338 2,723 2,575 5.7 %96.2 %96.1 %0.1 %68,148 64,397 5.8 %7.9 %
     San Francisco, CA3,072 3,419 3,208 6.6 %96.0 %95.4 %0.6 %60,491 56,437 7.2 %9.6 %
  Northern California12,133 2,995 2,802 6.9 %96.3 %96.0 %0.3 %209,996 195,945 7.2 %9.1 %
  Southern California
     Los Angeles, CA12,139 2,665 2,578 3.4 %96.0 %96.4 %(0.4)%186,358 180,942 3.0 %12.4 %
     Orange County, CA3,371 2,683 2,496 7.5 %96.0 %96.7 %(0.7)%52,117 48,794 6.8 %11.0 %
     San Diego, CA1,767 2,746 2,512 9.3 %96.7 %97.2 %(0.5)%28,156 25,869 8.8 %10.8 %
  Southern California17,277 2,677 2,556 4.7 %96.1 %96.5 %(0.4)%266,631 255,605 4.3 %12.0 %
  Other Expansion Regions925 2,160 1,943 11.2 %95.2 %94.8 %0.4 %11,417 10,227 11.6 %11.6 %
        Total Same Store74,955 $2,889 $2,672 8.1 %96.0 %96.3 %(0.3)%$1,247,386 $1,156,649 7.8 %10.2 %
(1) Reflects Residential concessions amortized over the average lease term and includes uncollectible lease revenue and revenue from government rent relief programs. Residential Rental Revenue with Concessions on a Cash Basis
for the Company's Same Store portfolio was 6.8%. See Attachment 13, table 10.
(2) Represents the change in Residential Rental Revenue adjusted to remove the impact of governmental rent relief in the periods presented. See Attachment 13, table 11 for further detail of uncollectible lease revenue and government
rent relief for the Company's Same Store portfolio.
14



Attachment 7
AvalonBay Communities, Inc.
Residential Operating Expenses ("Opex") - Same Store (1)
June 30, 2023
(Dollars in thousands)
(unaudited)
Q2
2023
Q2
2022
% ChangeQ2 2023 % of
Total Opex
YTD
2023
YTD
2022
% ChangeYTD 2023 % of
Total Opex
Property taxes (2)$68,317 $65,014 5.1 %35.0 %$136,629 $130,356 4.8 %35.4 %
Payroll (3)37,296 38,276 (2.6)%19.1 %75,313 76,878 (2.0)%19.5 %
Repairs & maintenance (4)37,170 33,351 11.5 %19.0 %66,948 61,665 8.6 %17.3 %
Utilities (5)21,790 16,666 30.7 %11.2 %46,186 36,447 26.7 %12.0 %
Office operations (6)18,020 15,706 14.7 %9.2 %36,411 30,630 18.9 %9.4 %
Insurance (7)8,598 7,928 8.5 %4.4 %17,274 15,711 9.9 %4.5 %
Marketing (8)4,060 3,541 14.7 %2.1 %7,531 7,058 6.7 %1.9 %
Total Same Store Residential Operating Expenses$195,251 $180,482 8.2 %100.0 %$386,292 $358,745 7.7 %100.0 %
(1)Same Store operating expenses exclude indirect costs for corporate-level property management and other support-related expenses.
(2)Property taxes increased for the three and six months ended June 30, 2023 over the prior year periods due to (i) increased assessments across the portfolio and (ii) the expiration of property tax incentive programs primarily at certain of our properties in New York City. The expiration of property tax incentive programs represents $1,237 or 37% of the 5.1% increase in property taxes for the three months ended June 30, 2023 and $2,638 or 42% of the 4.8% increase in property taxes for the six months ended June 30, 2023.
(3)Payroll costs decreased for the three and six months ended June 30, 2023 from the prior year periods primarily due to a reduction in on-site leasing and administrative personnel, decreased incentive compensation and lower benefit costs.
(4)Repairs and maintenance increased for the three and six months ended June 30, 2023 over the prior year periods due to increased contract labor and turnover costs and increased uninsured loss, partially offset by increased damage receipts as compared to the prior year periods.
(5)Utilities represents aggregate utility costs, net of resident reimbursements. The increases for the three and six months ended June 30, 2023 over the prior year periods are primarily due to the Company’s implementation of a bu