AvalonBay Communities, Inc. Announces Participation in Nareit’s REITweek Conference, Provides Second Quarter 2024 Operating Update, and Publishes Updated Investor Presentation

Rhea-AI Summary

AvalonBay Communities (NYSE: AVB) will participate in Nareit’s REITweek Conference from June 3-6, 2024. During the event, management will discuss various business and financial matters including operating environment trends, and portfolio strategy. The company also released its Q2 2024 operating update, showing a physical occupancy rate of 95.5% for April and May. Like-Term Effective Rent Change showed growth in multiple regions with an overall increase of 3.7% in May. Notably, Mid-Atlantic saw a 6% rise, while Southeast FL experienced a decline to -0.3%. Renewal offers for June and July 2024 are set at an average 6% increase. An updated investor presentation is available on their website.

Positive

• Participation in Nareit’s REITweek Conference could enhance visibility and investor relations.
• Physical occupancy rate remained stable at 95.5% in April and May 2024.
• Overall Like-Term Effective Rent Change increased by 3.7% in May 2024.
• Mid-Atlantic region saw a significant rent increase of 6% in May 2024.
• Renewal offers delivered for June and July 2024 feature an average 6% rent increase.

Negative

• Southeast FL region experienced a decline in Like-Term Effective Rent Change to -0.3% in May 2024.
• Other Expansion Regions, including Charlotte, NC, and Dallas, TX, saw a decrease in rent change to -1.9% in May 2024.

ARLINGTON, Va.--(BUSINESS WIRE)-- AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”) announced today that the Company will be participating in Nareit’s REITweek Conference from June 3 – 6, 2024. During this event, management may discuss the Company's current operating environment and trends; development, redevelopment, disposition and acquisition activity; portfolio strategy and other business and financial matters affecting the Company.

The Company also provided the following Same Store Residential operating information:

		Physical Occupancy
		2024
		Q1		April	May(1)
Total		95.6%		95.5%	95.5%
		Like-Term Effective Rent Change
		2024
		Q1		April	May(1)
New England		3.2%		4.4%	4.6%
Metro NY / NJ		2.6%		3.5%	4.3%
Mid-Atlantic		3.2%		5.1%	6.0%
Southeast FL		0.7%		0.6%	(0.3%)
Denver, CO		2.3%		3.4%	3.8%
Pacific NW		2.8%		4.4%	5.2%
Northern California		0.0%		2.6%	2.9%
Southern California		1.7%		1.8%	2.3%
Other Expansion Regions		0.4%		1.3%	(1.9%)
Total		2.0%		3.2%	3.7%
Suburban		2.3%		3.5%	4.0%
Urban		1.2%		2.6%	3.2%
Total		2.0%		3.2%	3.7%
New Move-in		(0.5%)		1.8%	2.8%
Renewal		4.3%		4.4%	4.6%
Total		2.0%		3.2%	3.7%

(1) Based on preliminary results through May 30, 2024.

• Renewal Offers for June and July 2024 are being delivered to residents at an average increase of 6.0% over the existing lease.

The Company has posted an updated Investor Presentation to its website. The presentation can be found in the Investor Relations section of www.avalonbay.com.

Definitions

Like-Term Effective Rent Change for an individual apartment home 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. Like-Term Effective Rent Change with respect to multiple apartment homes represents an average. New Move-In Like-Term Effective Rent Change is the change in effective rent between the contractual rent for a resident who moves out of an apartment, and the contractual rent for a resident who moves into the same apartment with the same lease term category. Renewal Like-Term Effective Rent Change is the change in effective rent between two consecutive leases of the same lease term category for the same resident occupying the same apartment.

Other Expansion Regions include markets located in Charlotte, North Carolina, and Dallas, Texas.

Renewal Offers generally represent initial offers made to market rate apartments with expiring leases for which the residents have not provided notice of their intent to vacate.

Residential represents results attributable to the Company's apartment rental operations, including parking and other ancillary Residential revenue.

Same Store is composed of consolidated communities 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 2024 operating results, Same Store is composed of consolidated communities that have Stabilized Operations as of January 1, 2023, are not conducting or are not probable to conduct substantial redevelopment activities and are not held for sale or probable for disposition within the current year.

Stabilized Operations is defined as operations of a community that occur after the earlier of (i) attainment of 90% physical occupancy or (ii) the one-year anniversary of completion of development or redevelopment.

Suburban represents results attributable to submarkets having less than 3,500 households per square mile.

Urban represents results attributable to submarkets having 3,500 or more households per square mile.

Forward-Looking Statements

This release 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, which include, but are not limited to, statements related to the Company’s operating performance. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company cautions investors that any such forward-looking statements are based on current beliefs or expectations of future events and on assumptions made by, and information currently available to, management. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “project,” “plan,” “may,” “shall,” “will,” “pursue” and other similar expressions in this press release, that predict or indicate future events and trends and that do not report historical matters. Such forward-looking statements are subject to various risks and uncertainties, including, among others, that occupancy rates and market rents may be adversely affected by competition and local economic and market conditions which are beyond the Company’s control and other trends affecting the Company’s financial condition or results of operations. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are described under the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as such factors may be updated from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC’s website at . Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.

About AvalonBay Communities, Inc.

As of March 31, 2024, the Company owned or held a direct or indirect ownership interest in 299 apartment communities containing 90,673 apartment homes in 12 states and the District of Columbia, of which 17 communities were under development. 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.

Copyright © 2024 AvalonBay Communities, Inc. All Rights Reserved

View source version on businesswire.com: https://www.businesswire.com/news/home/20240531433581/en/

Jason Reilley

Vice President

Investor Relations

AvalonBay Communities, Inc.

703-317-4681

Source: AvalonBay Communities, Inc.

FAQ

What is AvalonBay Communities' physical occupancy rate for Q2 2024?

AvalonBay Communities reported a physical occupancy rate of 95.5% for April and May 2024.

What is the Like-Term Effective Rent Change for AvalonBay in May 2024?

The overall Like-Term Effective Rent Change for AvalonBay was 3.7% in May 2024.

How did the Mid-Atlantic region perform in terms of rent changes for AvalonBay in May 2024?

The Mid-Atlantic region saw a Like-Term Effective Rent Change increase of 6% in May 2024.

What is the expected rent increase for AvalonBay's renewal offers in June and July 2024?

AvalonBay's renewal offers for June and July 2024 are set at an average increase of 6% over the existing lease.

Which regions experienced a decline in Like-Term Effective Rent Change for AvalonBay in May 2024?

Southeast FL experienced a decline to -0.3% and Other Expansion Regions saw a decrease to -1.9% in May 2024.