AvalonBay Communities, Inc. Provides Second Quarter 2019 Operating Update
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.
AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”) announced
today that total rental revenue for Established Communities for the two
months ended May 31, 2019 increased 3.4% over the prior year period.
This is 40 basis points above what the Company’s expectation was for
total rental revenue growth during this period when the Company
published its outlook for full year Established Communities rental
revenue growth on February 4, 2019.
The Company also provided the following operating metrics:
Established Communities | ||
Like-Term Effective Rent Change | ||
April & May | ||
2019 | 2018 | |
3.2% | 3.0% |
Renewal Offers for June and July 2019 are being delivered to residents
at an average increase of 5.3% over the existing lease.
Definitions
Established Communities are consolidated
communities in the markets where the Company has a significant presence
(New England, New York/New Jersey, Mid-Atlantic, Pacific Northwest, and
Northern and Southern California) and 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
2019 operating results, Established Communities are consolidated
communities that have Stabilized Operations as of January 1, 2018, 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. Average Like-Term Effective Rent Change is
weighted based on the number of leases meeting the criteria for new
move-in and renewal like-term effective rent change. 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.
Renewal Offers generally represent best
price initial offers made to market rate apartments with expiring leases
for which the residents have not provided notice of their intent to
vacate.
Stabilized Operations is defined as the
earlier of (i) attainment of 95% physical occupancy or (ii) the one year
anniversary of completion of development or redevelopment.
About AvalonBay Communities, Inc.
As of March 31, 2019, the Company owned or held a direct or indirect
ownership interest in 291 apartment communities containing 85,313
apartment homes in 12 states and the District of Columbia, of which 19
communities were under development and nine communities were under
redevelopment. The Company is an equity REIT in the business of
developing, redeveloping, acquiring and managing apartment communities
in leading metropolitan areas primarily in New England, the New York/New
Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and the
Northern and Southern California regions of the United States. More
information may be found on the Company’s website at http://www.avalonbay.com.
Copyright © 2019 AvalonBay Communities, Inc. All Rights Reserved
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