AvalonBay Communities, Inc. Provides Second Quarter 2021 Operating Update
June 04 2021 - 4:15PM
Business Wire
AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”)
announced today that it has reaffirmed the outlook, as provided in
its April 28, 2021 earnings release, for Established Communities
total residential rental revenue change for the three months ending
June 30, 2021, which was that the Company expected Established
Communities total residential rental revenue to decrease 5.5% from
the prior year period, resulting in a 0.0% change in Established
Communities total residential rental revenue as compared to what
the Company reported for the three months ended March 31, 2021.
The Company also provided the following residential operating
information for Established Communities:
Average Physical
Occupancy
2020
2021
Q4
Q1
April
May
Suburban Communities
94.9%
95.5%
96.1%
96.3%
Urban Communities
91.4%
93.6%
94.5%
95.1%
Total
93.9%
95.0%
95.7%
96.0%
Like-Term Effective Rent
Change
2020
2021
Q4
Q1
April
May
New England
(12.1%)
(10.4%)
(7.0%)
(2.6%)
Metro New York / New Jersey
(9.7%)
(7.8%)
(4.9%)
(2.9%)
Mid-Atlantic
(10.2%)
(8.0%)
(4.7%)
(2.7%)
Southeast Florida
(2.9%)
1.0%
5.2%
6.8%
Denver
4.1%
5.2%
8.7%
9.5%
Pacific Northwest
(11.5%)
(11.2%)
(5.2%)
(0.7%)
Northern California
(20.4%)
(15.7%)
(12.5%)
(8.3%)
Southern California
(2.7%)
(1.4%)
0.3%
4.0%
Total
(11.0%)
(8.3%)
(5.1%)
(1.9%)
Suburban Communities
(6.0%)
(3.9%)
(0.8%)
2.3%
Urban Communities
(20.3%)
(17.4%)
(14.1%)
(9.7%)
Total
(11.0%)
(8.3%)
(5.1%)
(1.9%)
Average Move-In Rent
Values
2020
2021
% Change
Q4
Q1
April
May
Q4 2020 to May 2021
New England
$
2,390
$
2,351
$
2,526
$
2,678
12.1%
Metro New York / New Jersey
2,729
2,716
2,787
2,917
6.9%
Mid-Atlantic
1,852
1,835
1,948
2,030
9.6%
Southeast Florida
2,033
2,136
2,268
2,368
16.5%
Denver
1,733
1,736
1,794
1,862
7.4%
Pacific Northwest
1,886
1,878
1,982
2,102
11.5%
Northern California
2,328
2,366
2,452
2,524
8.4%
Southern California
2,244
2,252
2,298
2,360
5.2%
Total
$
2,248
$
2,247
$
2,340
$
2,436
8.3%
Suburban Communities
$
2,190
$
2,191
$
2,278
$
2,357
7.6%
Urban Communities
2,393
2,386
2,493
2,632
10.0%
Total
$
2,248
$
2,247
$
2,340
$
2,436
8.3%
- The average asking rent in May of 2021 was approximately 14%
above the average monthly asking rent during the fourth quarter of
2020.
- The average concession per new move-in lease executed in May of
2021 was $465 as compared to $1,872 during the fourth quarter of
2020.
Definitions
Established 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 Operations, as defined
below, as of the beginning of the respective prior year period.
Therefore, for 2021 operating results, Established Communities are
consolidated communities that have Stabilized Operations as of
January 1, 2020, are not conducting or are not probable to conduct
substantial redevelopment activities and are not held for sale or
probable for disposition within the current year.
Like-Term Effective Rent Change
represents the percentage change in effective rent between two
leases of the same lease term category for the same apartment. The
Company defines effective rent as the contractual rent for an
apartment less amortized concessions and discounts.
Move-in Rent Value reflects the
average effective rent that our apartments would rent for based on
recent leasing activity, adjusting for apartment specific
characteristics (e.g., view premiums, renovation premiums). For a
given month, up to the ten most recent leases during the
immediately preceding last three months are used for each unit type
at a property. If no recent leasing activity has occurred for a
sparse unit type, then active leases or current asking rents, in
that order, would be used.
Stabilized Operations is defined as
the earlier of (i) attainment of 90% physical occupancy or (ii) the
one-year anniversary of completion of development or
redevelopment.
Suburban Communities are
communities located in submarkets with less than 3,500 households
per square mile.
Urban Communities are communities
located in submarkets with 3,500 households or more per square
mile.
Forward-Looking Statements
The projected change in total residential rental revenue for
Established Communities in this release is a forward-looking
statement under federal securities laws and is based on the
Company’s expectations, forecasts, and assumptions at the time of
this release. The actual change, if any, may differ materially from
the projected change. Factors that could result in a material
difference are discussed in the Company’s filings with the
Securities and Exchange Commission, including the Company’s Form
10-K for the fiscal year ended December 31, 2020 under the heading
“Risk Factors” and under the heading “Management’s Discussion and
Analysis of Financial Condition and Results of Operations -
Forward-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 2021 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.
About AvalonBay Communities, Inc.
As of March 31, 2021, the Company owned or held a direct or
indirect ownership interest in 290 apartment communities containing
85,787 apartment homes in 11 states and the District of Columbia,
of which 15 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, Southeast
Florida, Denver, Colorado, the Pacific Northwest, and Northern and
Southern California. More information may be found on the Company’s
website at http://www.avalonbay.com.
Copyright © 2021 AvalonBay Communities, Inc.
All Rights Reserved
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version on businesswire.com: https://www.businesswire.com/news/home/20210604005597/en/
Jason Reilley Vice President Investor Relations AvalonBay
Communities, Inc. 703-317-4681
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