AIR Communities provides operating update
DENVER, COLORADO, September 20, 2022 – Apartment Income REIT Corp. (“AIR”) (NYSE: AIRC) today provided an operating update on its change in Same Store Rental Rates and Average Daily Occupancy as of August 31, 2022. The Company remains on track to meet guidance for 2022 as described in its second quarter 2022 earnings release.
| Q2 2022 | July 2022 | August 2022 |
Transacted Leases |
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Renewal rent changes | 11.1% | 10.6% | 11.0% |
New lease rent changes | 18.9% | 17.9% | 17.4% |
Weighted-average rent changes | 14.3% | 14.0% | 14.0% |
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Signed Leases |
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Renewal rent changes | 10.6% | 11.8% | 11.9% |
New lease rent changes | 18.4% | 19.5% | 17.0% |
Weighted-average rent changes | 14.1% | 15.5% | 14.3% |
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Average Daily Occupancy | 96.8% | 95.5% | 96.0% |
In the Same Store portfolio, which represents 87% of AIR’s GAV, blended transacted leases increased by 14.0% in August, the highest among coastal peers. Occupancy is projected to continue to increase with the summer leasing season now complete, and full year controllable operating expenses are expected to remain roughly flat.
In the last 18 months, AIR has improved and grown its portfolio through leverage neutral “paired trades,” which has allowed for recycling capital into properties with superior prospects, enhanced further by AIR’s property operations and the application of the AIR Edge. The Acquisition portfolio, comprising properties acquired by AIR in 2021 and 2022, now amounts to 13% of AIR’s GAV. Blended transacted leases from AIR’s 2021 acquisitions were up 24.0% in August, 1,000 basis points higher than the Same Store portfolio.
With the pandemic now over, we can track AIR’s progress and how Keith Kimmel and his team continue to excel:
The economy is unusually turbulent, but AIR’s early prospects for 2023 are excellent. At year-end, the expected earn-in from 2022 leasing activities is expected to provide approximately 5% Same Store Revenue growth in 2023, with expected loss-to-lease providing the opportunity for additional growth.
About AIR
Apartment Income REIT Corp. (“AIR”) (NYSE: AIRC) is a real estate investment trust focused on the ownership and management of quality apartment communities located in the largest markets in the United States. AIR is one of the country’s largest owners and operators of apartments, with 76 communities in 11 states and the District of Columbia. AIR common shares are traded on the New York Stock Exchange under the ticker symbol AIRC, and are included in the S&P 400. For more information about AIR, please visit our website at www.aircommunities.com.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding projected results and specifically forecasts of 2022 and 2023 operating results including revenue, expenses, and NOI in the Same Store and Acquisition portfolios, free cash flow, and margin. We caution investors not to place undue reliance on any such forward-looking statements. These forward-looking statements are based on management’s current expectations, estimates and assumptions and subject to risks and uncertainties, that could cause actual results to differ materially from such forward-looking statements.
These forward-looking statements reflect management’s judgment as of this date, and we assume no obligation to revise or update them to reflect future events or circumstances.
Contact:
Matthew O’Grady
Senior Vice President, Capital Markets
(303) 691-4566
Mary Jensen
Head of Investor Relations
(303) 691-4349
investors@aircommunities.com