AvalonBay Communities(AVB) - 2024 Q1 - Quarterly Results

Financial Performance - For Q1 2024, AvalonBay reported diluted EPS of $1.22, a 16.2% increase from $1.05 in Q1 2023[2] - FFO per share for Q1 2024 was $2.73, up 7.5% from $2.54 in Q1 2023, while Core FFO per share increased by 5.1% to $2.70[2] - Total revenue for Q1 2024 was $712,859, a 5.7% increase from $674,708 in Q1 2023[28] - Net income attributable to common stockholders for Q1 2024 was $173,449, representing an 18.1% increase from $146,902 in Q1 2023[28] - Funds from operations (FFO) for Q1 2024 was $387,801, up 9.2% from $355,258 in Q1 2023[28] - Core FFO per common share for Q1 2024 was $2.70, compared to $2.57 in Q1 2023, marking an increase of approximately 5.1%[69] - Residential NOI for Q1 2024 was $483,657, up from $453,814 in Q1 2023, reflecting a growth of 6.6%[78] - Total Same Store NOI for Q1 2024 was $463,741, compared to $447,070 in Q1 2023, indicating a growth of 3.7%[78] Revenue and Occupancy - Same Store total revenue rose by $28,005,000, or 4.3%, to $677,245,000, with Same Store Residential revenue increasing by 4.2% to $669,227,000[4] - Same store average revenue per occupied home increased to $2,967 in Q1 2024 from $2,953 in Q4 2023[31] - Same store economic occupancy improved to 95.9% in Q1 2024 from 95.6% in Q4 2023[31] - Average occupancy rate for Q1 2024 was 95.9%, a decrease of 0.2% from Q1 2023[35] - The company reported a total of 78,377 apartment homes in its Same Store portfolio for Q1 2024[38] Operating Expenses - Same Store Residential operating expenses increased by 5.2% to $205,486,000, resulting in a Same Store Residential NOI increase of 3.7% to $463,741,000[4] - Total operating expenses for Q1 2024 were $218,691, a 7.0% increase from $204,324 in Q1 2023[28] - Property taxes for Q1 2024 increased by 4.8% to $74,633,000, primarily due to increased assessments and the expiration of tax incentive programs[42] - Utilities expenses rose by 15.9% to $29,239,000, largely driven by the implementation of a bulk internet offering[42] - Payroll costs for Q1 2024 were $39,703,000, a 0.5% increase year-over-year, attributed to wage increases[42] - Repairs and maintenance expenses increased by 8.2% to $33,223,000, due to higher repair costs and increased turnover[42] Development and Construction - As of March 31, 2024, AvalonBay had 17 consolidated Development communities under construction, expected to contain 6,064 apartment homes with a total capital cost of $2.5 billion[8] - The company has 17 communities currently under development[18] - Total capital cost for communities under construction is $2,500 million, with 6,064 apartment homes involved[48] - Average monthly revenue per home for communities under construction is $2,960[48] Financial Outlook - For Q2 2024, AvalonBay projects EPS between $1.60 and $1.70, with FFO per share expected to range from $2.59 to $2.69[12] - The full year 2024 outlook anticipates Same Store Residential revenue growth of 2.5% to 3.7% and Residential NOI growth of 1.1% to 3.1%[13] - The projected EPS for January 2024 is $6.52, while the projected Core FFO per share is $10.78[15] - The projected EPS for April 2024 is $7.18, with a projected Core FFO per share of $10.91[15] Cash and Debt Management - The Company had $287,892,000 in unrestricted cash and cash equivalents as of March 31, 2024, with no borrowings under its $2.25 billion unsecured revolving credit facility[10] - AvalonBay's annualized Net Debt-to-Core EBITDAre ratio for Q1 2024 was 4.3 times, with Unencumbered NOI at 95%[10] - Total debt as of March 31, 2024, is $8,043,242, with an average interest rate of 3.4%[55] - The net debt-to-core EBITDA ratio for Q1 2024 is 4.3x, while the interest coverage ratio is 7.5x[56] - Unsecured indebtedness accounts for 29.6% of total assets, which is below the covenant requirement of less than 65%[56] Market Expansion - The company is expanding into new regions including Raleigh-Durham, Charlotte, Southeast Florida, Dallas, Austin, and Denver[18] - AvalonBay operates four distinct brands: Avalon, AVA, eaves by Avalon, and Kanso, targeting different customer segments[24] Conference and Communication - The company will hold a conference call on April 26, 2024, to discuss its first quarter 2024 results[16] - The company emphasizes the importance of forward-looking statements regarding its development and acquisition activities[19] - The company provides detailed information regarding its operations and financial data through Earnings Release Attachments available on its website[17] Economic Conditions - The company's financial outlook may be impacted by rising interest rates and general economic conditions[20] - The Company expects the amount of government rent relief recognized to decline in 2024, impacting uncollectible lease revenue[92]