Company Operations and Development - As of January 31, 2024, the company owned or held interests in 279 operating apartment communities with a total of 83,655 apartment homes[16]. - The company completed the development of 21 apartment communities and the redevelopment of 2 apartment communities over the past three years[20]. - The company acquired 14 apartment communities and disposed of 22 apartment communities during the same period[20]. - The company has rights to develop an additional 30 communities, which are expected to contain 10,801 apartment homes[16]. - The company operates under four core brands: Avalon, AVA, eaves by Avalon, and Kanso, targeting different customer segments[19]. - The company has entered into joint ventures to develop and own communities, allowing for diversification and potential higher returns on invested capital[37]. - The company operates an investment platform providing mezzanine loans or preferred equity to third-party multifamily developers in existing regions[39]. - The company has a Developer Funding Program that utilizes third-party developers for sourcing and constructing communities[165]. - The company has 24 Development communities with a total of 7,629 apartment homes[150]. - The company has identified 30 Development Rights opportunities, which include 10,801 potential apartment homes[150]. - The company has a presence in various geographic markets, with significant communities in Southern California, Northern California, and the Mid-Atlantic region[158]. - The company has an indirect interest in the AVA Arts District in Los Angeles, CA, with 475 apartment homes and a projected total capitalized cost of 291million,expectedtostabilizeoperationsbyQ42024[167].FinancialPerformance−NetincomeattributabletocommonstockholdersfortheyearendedDecember31,2023was928,825,000, a decrease of 207,950,000,or18.31,732,422,000, reflecting a 100,738,000,or6.2149,495,000, or 6.3%, while property operating expenses rose by 48,752,000,or6.61,363,299,000 of gross capital through real estate sales and unsecured notes during 2023[200]. - Four wholly-owned communities were sold for 446,000,000,containing987apartmenthomesand27,000squarefeetofcommercialspace[200].−Sixwholly−ownedcommunitieswerecompleted,containing1,393apartmenthomesand29,000squarefeetofcommercialspace,withatotalcapitalizedcostof575,000,000[200]. - Construction began on six new communities expected to contain 2,040 apartment homes, with an estimated total capitalized cost of 800,000,000[200].−Thecompanyissued400,000,000 principal amount of fixed rate unsecured notes and repaid 600,000,000principalamountoffixedrateunsecurednotesduring2023[201].StrategicGoalsandManagement−Thecompanyaimstoincreaselong−termshareholdervaluethroughstrategicacquisitions,developments,andefficientoperations[18].−Thecompanyfocusesoninnovativepropertymanagementstrategiestomaximizeoperatingincomeandconstrainoperatingexpenses[31].−Thecompanyhasacapitalstructurealignedwithitsbusinessrisks,ensuringcontinuousaccesstocost−effectivecapital[18].−Thecompanymaintainsacapitalstructurethatprovidesfinancialflexibility,estimatingshort−termliquidityneedswillbemetfromcashonhand,borrowingsundera2,250,000,000 credit facility, and a 500,000,000commercialpaperprogram[36].−Thecompanyexpectstomeetliquidityneedsthroughexistingcash,operatingcashflows,andvariousfinancingoptions[203].WorkforceandDiversity−AsofJanuary31,2024,thecompanyemployed3,039associates,withapproximately9844.1 million if triggering actions were taken in 2023[30]. - The company may face adverse tax consequences if transactions intended as Section 1031 exchanges are later determined to be taxable[111]. - A significant portion of the company's debt is subject to prepayment penalties, which could adversely affect operational results if a substantial amount of debt is prepaid[80]. - Changes in U.S. accounting standards may materially impact the company's reported financial results[130].
AvalonBay Communities(AVB)2024-02-22 16:00