Apartment Income REIT Corp. Announces Closing of $1.4 Billion Credit Facility, First Quarter 2021 Leasing Results, and Increased 2021 Guidance
Apartment Income REIT Corp. (“AIR”) (NYSE: AIRC) today announced the closing of a new
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$1.4 Billion Credit Facility
On April 14, AIR closed a new
- Strong Recovery in Apartment Demand
The sustained improvements described below support AIR expectations that fourth quarter 2021 occupancy will return to pre-COVID levels and for a continued recovery in property operations. These expectations are further supported by positive leading indicators in AIR’s three most pandemic-affected markets of Philadelphia, Los Angeles, and the Bay Area. The expected recovery across the AIR portfolio is anticipated to provide accelerated growth in 2022 operating results.
- Marketing Properties for Sale to Reduce Leverage
AIR expects to reduce leverage through the sale of properties forecasted to generate approximately
- Increased Guidance
Considering the benefit to FFO of increased rental income and lower interest expense together with the dilution of selling properties to reduce financial leverage, AIR narrowed and increased its 2021 FFO per share guidance from a range of
The Credit Facility
The facility is comprised of a
The
The term loans mature on the following schedule:
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$150 million maturing on December 15, 2023 with two one-year extension options -
$300 million maturing on December 15, 2024 with a one-year extension option -
$150 million maturing on December 15, 2025 -
$200 million maturing on April 14, 2026
The term loans were structured to maintain AIR’s balanced maturity ladder, and to also maximize flexibility through the ability to prepay freely and extend the maturity date of shorter duration loans.
The facility is held by 15 U.S. and International banks. The syndication was led by PNC Capital Markets LLC and Wells Fargo Securities, LLC and as Joint Bookrunners and Lead Arrangers. PNC Bank, National Association acts as Administrative Agent and Sustainability Agent for the Facility and Wells Fargo Bank, National Association acts as Syndication Agent. Bank of the West, Regions Capital Markets, and U.S. Bank National Association, act as Joint Lead Arrangers and Co-Syndication Agents. Bank of America, N.A., Citibank N.A, The Bank of Nova Scotia and TD Bank, N.A. are Co-Documentation Agents. J.P. Morgan Chase Bank, N.A., Peoples United Bank, N.A., Zions First National Bank, Associated Bank, National Association, Morgan Stanley Bank, N.A., and First Hawaiian Bank also participate in the Facility.
Chief Financial Officer Paul Beldin commented: “We are very pleased with the execution and great work by PNC and Wells Fargo. The syndicate was oversubscribed and includes five banks new to the AIR credit, a powerful endorsement of AIR’s focused business model with low leverage and low execution risk.”
First Quarter 2021 Leasing Results
First quarter 2021 leasing activity was better than expectations as the economic recovery continued in markets across the AIR portfolio. First quarter 2021 same store revenue decreased
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Apartment Income
NYSE:AIRCAIRC RankingsAIRC Latest NewsAIRC Stock Data
5.67B
144.05M
0.71%
102.6%
4.61%
REIT - Residential
Real Estate Investment Trusts
United States
DENVER
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