Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 1-12672 | |
Entity Registrant Name | AVALONBAY COMMUNITIES, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 77-0404318 | |
Entity Address, Address Line One | Ballston Tower | |
Entity Address, Address Line Two | 671 N. Glebe Rd, Suite 800 | |
Entity Address, Address City or Town | Arlington | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | AVB | |
Security Exchange Name | NYSE | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 139,656,943 | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22203 | |
City Area Code | 703 | |
Local Phone Number | 329-6300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0000915912 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Real estate: | ||
Land and improvements | $ 4,137,471 | $ 4,077,090 |
Buildings and improvements | 15,988,751 | 15,651,035 |
Furniture, fixtures and equipment | 757,243 | 696,200 |
Gross operating real estate | 20,883,465 | 20,424,325 |
Less accumulated depreciation | (4,872,896) | (4,601,447) |
Net operating real estate | 16,010,569 | 15,822,878 |
Construction in progress, including land | 1,939,808 | 1,768,132 |
Land held for development | 18,606 | 84,712 |
Real estate assets held for sale, net | 40,461 | 55,208 |
Total real estate, net | 18,009,444 | 17,730,930 |
Cash and cash equivalents | 243,576 | 91,659 |
Cash in escrow | 86,468 | 126,205 |
Resident security deposits | 35,084 | 31,816 |
Investments in unconsolidated real estate entities | 208,519 | 217,432 |
Deferred development costs | 60,217 | 47,443 |
Prepaid expenses and other assets | 166,886 | 134,715 |
Right of use lease assets | 122,381 | |
Total assets | 18,932,575 | 18,380,200 |
LIABILITIES AND EQUITY | ||
Unsecured notes, net | 6,355,132 | 5,905,993 |
Variable rate unsecured credit facility | 0 | 0 |
Mortgage notes payable, net | 997,085 | 1,134,270 |
Dividends payable | 213,403 | 204,191 |
Payables for construction | 104,545 | 96,983 |
Accrued expenses and other liabilities | 258,486 | 297,700 |
Lease liabilities | 138,163 | |
Accrued interest payable | 48,169 | 46,648 |
Resident security deposits | 63,183 | 58,415 |
Liabilities related to real estate assets held for sale | 541 | 150 |
Total liabilities | 8,178,707 | 7,744,350 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 3,338 | 3,244 |
Equity: | ||
Preferred stock, $0.01 par value; $25 liquidation preference; 50,000,000 shares authorized at June 30, 2019 and December 31, 2018; zero shares issued and outstanding at June 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.01 par value; 280,000,000 shares authorized at June 30, 2019 and December 31, 2018; 139,656,557 and 138,508,424 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 1,397 | 1,385 |
Additional paid-in capital | 10,519,239 | 10,306,588 |
Accumulated earnings less dividends | 262,548 | 350,777 |
Accumulated other comprehensive loss | (33,184) | (26,144) |
Stockholders' Equity Attributable to Parent | 10,750,000 | 10,632,606 |
Stockholders' Equity Attributable to Noncontrolling Interest | 530 | 0 |
Total equity | 10,750,530 | 10,632,606 |
Total liabilities and equity | $ 18,932,575 | $ 18,380,200 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 280,000,000 | 280,000,000 |
Common stock, shares issued (in shares) | 139,656,557 | 138,508,424 |
Common stock, shares outstanding (in shares) | 139,656,557 | 138,508,424 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue: | ||||
Operating Lease, Lease Income | $ 576,149 | $ 568,285 | $ 1,141,194 | $ 1,128,191 |
Management, development and other fees | 1,114 | 954 | 2,252 | 1,841 |
Total revenue | 577,263 | 569,239 | 1,143,446 | 1,130,032 |
Expenses: | ||||
Operating expenses, excluding property taxes | 132,924 | 130,836 | 256,378 | 262,094 |
Property taxes | 62,187 | 59,994 | 123,516 | 119,891 |
Interest expense, net | 50,010 | 56,585 | 97,902 | 111,698 |
Loss on extinguishment of debt, net | 229 | 642 | 509 | 1,039 |
Depreciation expense | 162,693 | 156,685 | 324,749 | 315,743 |
General and administrative expense | 18,965 | 15,209 | 32,671 | 29,640 |
Expensed transaction, development and other pursuit costs, net of recoveries | 2,711 | 1,047 | 3,806 | 1,847 |
Casualty and impairment gain, net | 0 | 0 | 0 | 58 |
Total expenses | 429,719 | 420,998 | 839,531 | 841,894 |
Equity in income (loss) of unconsolidated real estate entities | 197 | 789 | (863) | 2,529 |
Gain on sale of communities | 20,530 | 105,201 | 35,365 | 105,201 |
Gain on other real estate transactions, net | 34 | 370 | 300 | 323 |
Income before income taxes | 168,305 | 254,601 | 338,717 | 396,191 |
Income tax expense (refund) | 0 | 58 | (6) | 58 |
Net income | 168,305 | 254,543 | 338,723 | 396,133 |
Net (income) loss attributable to noncontrolling interests | (24) | 119 | (76) | 172 |
Net income attributable to common stockholders | 168,281 | 254,662 | 338,647 | 396,305 |
Other comprehensive income (loss): | ||||
(Loss) gain on cash flow hedges | (2,888) | 0 | (10,119) | 11,499 |
Cash flow hedge losses reclassified to earnings | 1,611 | 1,455 | 3,079 | 3,213 |
Comprehensive income | $ 167,004 | $ 256,117 | $ 331,607 | $ 411,017 |
Earnings per common share - basic: | ||||
Net income attributable to common stockholders (in dollars per share) | $ 1.21 | $ 1.84 | $ 2.43 | $ 2.87 |
Earnings per common share - diluted: | ||||
Net income attributable to common stockholders (in dollars per share) | $ 1.21 | $ 1.84 | $ 2.43 | $ 2.87 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 338,723 | $ 396,133 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation expense | 324,749 | 315,743 |
Amortization of deferred financing costs | 3,565 | 4,042 |
Amortization of debt discount | 789 | 849 |
Loss on extinguishment of debt, net | 509 | 1,039 |
Amortization of stock-based compensation | 13,719 | 10,127 |
Equity in loss of, and return on, unconsolidated real estate entities and noncontrolling interests, net of eliminations | 10,131 | 3,143 |
Casualty and impairment gain, net | 0 | (58) |
Abandonment of development pursuits | 1,285 | 725 |
Cash flow hedge losses reclassified to earnings | 3,079 | 3,213 |
Gain on sale of real estate assets | (35,665) | (105,524) |
Increase in resident security deposits, prepaid expenses and other assets | (24,241) | (3,875) |
Increase (decrease) in accrued expenses, other liabilities and accrued interest payable | 1,624 | (260) |
Net cash provided by operating activities | 638,267 | 625,297 |
Cash flows from investing activities: | ||
Development/redevelopment of real estate assets including land acquisitions and deferred development costs | (560,385) | (604,540) |
Acquisition of real estate assets, including partnership interest | (152,260) | 0 |
Capital expenditures - existing real estate assets | (48,006) | (37,081) |
Capital expenditures - non-real estate assets | (4,222) | (1,896) |
Mortgage note receivable payments | 7,562 | 7,421 |
Increase in payables for construction | 168,034 | 299,226 |
Proceeds from sale of real estate, net of selling costs | 0 | 58 |
Insurance proceeds for property damage claims | (507) | (2,291) |
Mortgage note receivable lending | 978 | 27,511 |
Distributions from unconsolidated real estate entities | 0 | 2,013 |
Investments in unconsolidated real estate entities | (1,218) | (7,102) |
Net cash used in investing activities | (590,024) | (316,681) |
Cash flows from financing activities: | ||
Issuance of common stock, net | 206,193 | 833 |
Dividends paid | (415,295) | (399,070) |
Repayments of mortgage notes payable, including prepayment penalties | (137,653) | (59,314) |
Issuance of unsecured notes | 449,803 | 299,442 |
Payment of deferred financing costs | (10,668) | (3,345) |
Payment of finance lease obligation | (535) | |
Payment of finance lease obligation | (535) | |
(Payment) receipt for termination of forward interest rate swaps | (12,309) | 12,598 |
Contribution from noncontrolling interest | 337 | 0 |
Payments related to tax withholding for share-based compensation | (14,286) | (10,524) |
Distributions to DownREIT partnership unitholders | (23) | (22) |
Distributions to joint venture and profit-sharing partners | (227) | (208) |
Preferred interest obligation redemption and dividends | (1,400) | (480) |
Net cash provided by (used in) financing activities | 63,937 | (160,625) |
Net increase in cash and cash equivalents | 112,180 | 147,991 |
Cash and cash equivalents and restricted cash, beginning of period | 217,864 | 201,906 |
Cash and cash equivalents and restricted cash, end of period | 330,044 | 349,897 |
Cash paid during the period for interest, net of amount capitalized | 88,948 | 95,204 |
Supplemental Cash Flow Information [Abstract] | ||
Cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statements of Cash Flows | $ 217,864 | $ 201,906 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Supplemental disclosures of non-cash investing and financing activities | ||||||||
Common stock issued through the dividend reinvestment plan (in shares) | 1,092 | 1,135 | ||||||
Common stock issued through the dividend reinvestment plan | $ 208,000 | $ 190,000 | ||||||
Number of shares withheld to satisfy employees' tax withholding and other liabilities (in shares) | 75,195 | 67,854 | ||||||
Shares withheld to satisfy employees' tax withholding and other liabilities, value | $ 14,206,000 | $ 10,524,000 | ||||||
Stock issued during period, shares, share-based compensation, forfeited (in shares) | 1,438 | |||||||
Stock issued during period, value, share-based compensation, forfeited | $ 250,000 | 648,000 | ||||||
Dividends declared but not paid | $ 213,403,000 | 213,403,000 | $ 204,191,000 | |||||
Change in redemption value of redeemable noncontrolling interest | 45,000 | $ 224,000 | $ 291,000 | $ 63,000 | ||||
Increase (Decrease) in Derivative Liabilities | (4,198,000) | |||||||
Increase (Decrease) in Derivative Assets | 18,000 | |||||||
Cash flow hedge losses reclassified to earnings | (1,611,000) | (1,468,000) | (1,455,000) | (1,756,000) | (3,079,000) | $ (3,213,000) | ||
Operating Lease, Right-of-Use Asset | 100,377,000 | 100,377,000 | ||||||
Total lease liabilities | 117,938,000 | $ 117,938,000 | ||||||
Restricted Stock and Restricted Stock Converted From Performance Shares | ||||||||
Supplemental disclosures of non-cash investing and financing activities | ||||||||
Equity instruments granted (in shares) | 150,359 | 186,382 | ||||||
Restricted Stock Converted From Performance Shares | ||||||||
Supplemental disclosures of non-cash investing and financing activities | ||||||||
Equity instruments granted (in shares) | 73,072 | 88,297 | ||||||
Restricted stock | ||||||||
Supplemental disclosures of non-cash investing and financing activities | ||||||||
Equity instruments granted (in shares) | 77,287 | 98,085 | ||||||
Fair value of shares issued | $ 15,145,000 | $ 15,837,000 | ||||||
Stock issued during period, shares, share-based compensation, forfeited (in shares) | 1,438 | 4,434 | ||||||
Common stock | ||||||||
Supplemental disclosures of non-cash investing and financing activities | ||||||||
Dividends declared but not paid | 212,822,000 | 203,472,000 | $ 212,822,000 | $ 203,472,000 | ||||
Accumulated earnings less dividends | ||||||||
Supplemental disclosures of non-cash investing and financing activities | ||||||||
Change in redemption value of redeemable noncontrolling interest | $ 45,000 | $ 224,000 | $ 291,000 | $ 63,000 | $ 269,000 | $ (354,000) | ||
Accounting Standards Update 2016-02 | ||||||||
Supplemental disclosures of non-cash investing and financing activities | ||||||||
Operating Lease, Right-of-Use Asset | $ 122,276,000 | |||||||
Total lease liabilities | $ 122,276,000 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization, Basis of Presentation and Significant Accounting Policies | Organization, Basis of Presentation and Significant Accounting Policies Organization and Basis of Presentation AvalonBay Communities, Inc. (the "Company," which term, unless the context otherwise requires, refers to AvalonBay Communities, Inc. together with its subsidiaries), is a Maryland corporation that has elected to be treated as a real estate investment trust ("REIT") for federal income tax purposes under the Internal Revenue Code of 1986 (the "Code"). The Company focuses on the development, redevelopment, acquisition, ownership and operation of multifamily communities primarily in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. At June 30, 2019 , the Company owned or held a direct or indirect ownership interest in 273 operating apartment communities containing 79,161 apartment homes in 12 states and the District of Columbia, of which seven communities containing 3,026 apartment homes were under redevelopment. In addition, the Company owned or held a direct or indirect ownership interest in 21 communities under development that are expected to contain an aggregate of 7,023 apartment homes when completed, as well as a mixed-use project being developed in which the Company is currently pursuing a potential for-sale strategy of individual condominium units. The Company also owned or held a direct or indirect ownership interest in land or rights to land on which the Company expects to develop an additional 28 communities that, if developed as expected, will contain an estimated 9,004 apartment homes. The interim unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements required by GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements should be read in conjunction with the financial statements and notes included in the Company's 2018 Annual Report on Form 10-K. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the operating results for the full year. Management believes the disclosures are adequate to ensure the information presented is not misleading. In the opinion of management, all adjustments and eliminations, consisting only of normal, recurring adjustments necessary for a fair presentation of the financial statements for the interim periods, have been included. Capitalized terms used without definition have meanings provided elsewhere in this Form 10-Q. Earnings per Common Share Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common shareholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per share ("EPS"). Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. The Company's earnings per common share are determined as follows (dollars in thousands, except per share data): For the three months ended For the six months ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Basic and diluted shares outstanding Weighted average common shares - basic 139,113,390 137,840,045 138,724,479 137,802,461 Weighted average DownREIT units outstanding 7,500 7,500 7,500 7,500 Effect of dilutive securities 497,341 367,465 495,397 374,334 Weighted average common shares - diluted 139,618,231 138,215,010 139,227,376 138,184,295 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 168,281 $ 254,662 $ 338,647 $ 396,305 Net income allocated to unvested restricted shares (435 ) (727 ) (935 ) (1,167 ) Net income attributable to common stockholders, adjusted $ 167,846 $ 253,935 $ 337,712 $ 395,138 Weighted average common shares - basic 139,113,390 137,840,045 138,724,479 137,802,461 Earnings per common share - basic $ 1.21 $ 1.84 $ 2.43 $ 2.87 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 168,281 $ 254,662 $ 338,647 $ 396,305 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 12 11 23 22 Adjusted net income attributable to common stockholders $ 168,293 $ 254,673 $ 338,670 $ 396,327 Weighted average common shares - diluted 139,618,231 138,215,010 139,227,376 138,184,295 Earnings per common share - diluted $ 1.21 $ 1.84 $ 2.43 $ 2.87 All options to purchase shares of common stock outstanding as of June 30, 2019 and 2018 are included in the computation of diluted earnings per share. Derivative Instruments and Hedging Activities The Company enters into interest rate swap and interest rate cap agreements (collectively, "Hedging Derivatives") for interest rate risk management purposes and in conjunction with certain variable rate secured debt to satisfy lender requirements. The Company does not enter into Hedging Derivative transactions for trading or other speculative purposes. The Company assesses the effectiveness of qualifying cash flow and fair value hedges, both at inception and on an on-going basis. Hedge ineffectiveness is reported as a component of interest expense, net. The fair values of Hedging Derivatives that are in an asset position are recorded in prepaid expenses and other assets. The fair value of Hedging Derivatives that are in a liability position are included in accrued expenses and other liabilities. The Company does not present or disclose the fair value of Hedging Derivatives on a net basis. Fair value changes for derivatives that are not in qualifying hedge relationships are reported as a component of interest expense, net. For the Hedging Derivative positions that the Company has determined qualify as effective cash flow hedges, the Company has recorded the cumulative changes in the fair value of Hedging Derivatives in other comprehensive loss. Amounts recorded in accumulated other comprehensive loss will be reclassified into earnings in the periods in which earnings are affected by the hedged cash flow. The effective portion of the change in fair value of the Hedging Derivatives that the Company has determined qualified as effective fair value hedges is reported as an adjustment to the carrying amount of the corresponding debt being hedged. See Note 11, "Fair Value," for further discussion of derivative financial instruments. Legal and Other Contingencies The Company is involved in various claims and/or administrative proceedings that arise in the ordinary course of its business. While no assurances can be given, the Company does not currently believe that any of these outstanding litigation matters, individually or in the aggregate, will have a material adverse effect on its financial condition or results of operations. Acquisitions of Investments in Real Estate The Company accounts for acquisitions of investments in real estate in accordance with the authoritative guidance for the initial measurement, which first requires that the Company determine if the real estate investment is the acquisition of an asset or a business combination. Under either model, the Company must identify and determine the fair value of any assets acquired, liabilities assumed and any noncontrolling interest in the acquiree. Typical assets acquired and liabilities assumed include land, building, furniture, fixtures and equipment, debt and identified intangible assets and liabilities, consisting of the value of above or below market leases and in-place leases. In making estimates of fair values for purposes of allocating purchase price, the Company utilizes various sources, including its own analysis of recently acquired and existing comparable properties in its portfolio and other market data. Consideration for acquisitions is typically in the form of cash unless otherwise disclosed. For a business combination, the Company records the assets acquired and liabilities assumed based on the fair value of each respective item. For an asset acquisition, the allocation of the purchase price is based on the relative fair value of the net assets. The Company expenses all applicable acquisition costs for a business combination and capitalizes all applicable acquisition costs for an asset acquisition. The Company expects that acquisitions of individual operating communities will generally be viewed as asset acquisitions. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to amounts in prior years' notes to financial statements to conform to current year presentations as a result of changes in held for sale classification, disposition activity and segment classification. Leases The Company is party to leases as both a lessor and a lessee, primarily as follows: • lessor of residential and retail space within its apartment communities; and • lessee under (i) ground leases for land underlying current operating or development communities, (ii) office leases for its corporate headquarters and regional offices and (iii) leases of equipment. The Company adopted ASU 2016-02, Leases, as of January 1, 2019 using the prospective adoption approach, applying the provisions of the new standard to existing leases as of the date of adoption. Lessee Considerations The Company assessed whether a contract is or contains a lease based on whether the contract conveys the right to control the use of an identified asset, including specified portions of larger assets, for a period of time in exchange for consideration. The Company identified leases as contracts in which it has the right to direct the use of the property and obtain all of the economic benefits. The Company’s leases include both fixed and variable lease payments, which are based on an index or rate such as the consumer price index (CPI) or percentage rents based on total sales. When evaluating what payments to include in the measurement of the lease liability, the Company included lease payments that depend on an index or rate only. Variable lease payments that are not based on an index or rate including changes in CPI, percentage rents based on total sales, fair market value resets and others are not included in the measurement of the lease liability, but will be recognized as variable lease expense in the period in which they are incurred. For leases that have options to extend the term or terminate the lease early, the Company considered whether these options are reasonably certain to be exercised, taking into account physical improvements, installation or relocation costs, rent during the option periods and the cost of returning the assets to a contractually specified condition. The Company only factored the impact of options into the lease term if the option was considered reasonably certain to be exercised. The Company determined the discount rate associated with its ground and office leases using the Company’s actual borrowing rates as well as indicative market pricing for longer term rates. The Company determined the discount rates on a lease by lease basis using the incremental borrowing rate and taking into consideration the remaining term of each of the lease agreements. Lessor Considerations The Company evaluated leases in which it is the lessor, which are composed of residential and retail leases at its apartment communities. The accounting model for lessors did not significantly change as a result of ASU 2016-02, with the impacts primarily related to the accounting for sales-type and direct financing leases. The Company evaluated its residential and retail leases determining that they continue to be considered to be operating leases. For lease agreements that provide for rent concessions and/or scheduled fixed and determinable rent increases, rental income is recognized on a straight-line basis over the noncancellable term of the lease. The Company’s residential lease term is generally one year. Some of the Company’s retail leases have fixed-price renewal options, and the lessee may be able to exercise its renewal option at an amount less than the fair value of the rent at such time. The Company only includes renewal options in the lease term, if at the commencement of the lease, the option period rent is reasonably certain to be less than the base period rent and therefore exercised by the lessee. Additionally, for the Company’s residential and retail leases, which are comprised of the lease component and common area maintenance as a non-lease component, the Company determined that (i) the leases are operating leases, (ii) the lease component is the predominant component and (iii) that all components of its operating leases share the same timing and pattern of transfer. The Company changed its presentation of charges for uncollectible lease revenue associated with its residential and retail leasing activity, reflecting those amounts as a component of rental and other income on the accompanying Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2019 . However, in accordance with its prospective adoption of the lease standard, the Company did not adjust the prior year period presentation of charges for uncollectible lease revenue associated with its residential and retail leasing activity as a component of operating expenses, excluding property taxes, on the on the accompanying Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2018 . Implementation Considerations and Impact As discussed above, the Company used the prospective adoption approach for the standard. Additionally, in conjunction with the implementation of the standard, the Company elected to apply certain lessee practical expedients allowed under the standard including: • not reassessing (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) the accounting for initial direct costs for any existing leases; • not evaluating short term leases; • not assessing whether existing land easements are, or contain leases; and • making an accounting policy election by class of underlying asset, to not separate non-lease components from lease components and instead to account for each separate lease and non-lease component as a single lease component. Also in conjunction with the implementation of the standard, the Company elected to apply the following practical expedients for lessors, making an accounting policy election: • by class of underlying asset for retail and residential leases, to not separate non-lease components from lease components and instead to account for each separate lease and non- lease component as a single lease component; • to exclude costs paid by lessees directly to third parties on behalf of the Company; and • to exclude sales taxes and other similar taxes assessed by a government authority and collected by the Company from the lessee. Upon adoption, the Company recorded lease liabilities and offsetting right of use lease assets for its ground and office leases of $122,276,000 . In addition, the Company made certain other reclassifications in the current year period of lease related amounts on its Condensed Consolidated Balance Sheet to conform to the presentation under the new standard. The adoption of the standard did not have a material impact on the accompanying Condensed Consolidated Statements of Comprehensive Income. Revenue and Gain Recognition The majority of the Company’s revenue is derived from residential and retail rental income and other lease income, which are accounted for under ASU 2016-02, Leases, discussed above. The Company's revenue streams that are not accounted for under ASU 2016-02 include: • Management fees - The Company has investment interests in real estate joint ventures, for which the Company may manage (i) the venture, (ii) the associated operating communities owned by the ventures and/or (iii) the development or redevelopment of those operating communities. For these activities, the Company receives asset management, property management, development and/or redevelopment fee revenue. The performance obligation is the management of the venture, community or other defined task such as the development or redevelopment of the community. While the individual activities that comprise the performance obligation of the management fees can vary day to day, the nature of the overall performance obligation to provide management service is the same and considered by the Company to be a series of services that have the same pattern of transfer to the customer and the same method to measure progress toward satisfaction of the performance obligation. The Company recognizes revenue for fees as earned on a monthly basis. • Rental and non-rental related income - The Company recognizes revenue for new rental related income not included as components of a lease, such as reservation and application fees, as well as for non-rental related income, as earned. • Gains or losses on sales of real estate - The Company accounts for the sale of real estate assets and any related gain recognition in accordance with the accounting guidance applicable to sales of real estate, which establishes standards for recognition of profit on all real estate sales transactions, other than retail land sales. The Company recognizes the sale, and associated gain or loss from the disposition, provided that the earnings process is complete and the Company does not have significant continuing involvement. A gain or loss is recognized when the criteria for an asset to be derecognized are met, which include when (i) a contract exists and (ii) the buyer obtained control of the nonfinancial asset that was sold. In addition, a gain or loss recognized on the sale of a nonfinancial asset to an unconsolidated entity is recognized at 100%, and not the Company’s proportionate ownership percentage. The following table provides details of the Company’s revenue streams disaggregated by the Company’s reportable operating segments, further discussed in Note 8, “Segment Reporting,” for the three and six months ended June 30, 2019 and 2018 . Segment information for total revenue has been adjusted to exclude the real estate assets that were sold from January 1, 2018 through June 30, 2019 , or otherwise qualify as held for sale as of June 30, 2019 , as described in Note 6, "Real Estate Disposition Activities." Additionally, as discussed above, the Company changed its presentation of charges for uncollectible lease revenue for the three and six months ended June 30, 2019 , including it as an adjustment to revenue and not as a component of operating expenses, as it is presented for prior periods on the accompanying Condensed Consolidated Statement of Comprehensive Income. In order to provide comparability between periods presented in the Company's segment reporting, the Company has included charges for uncollectible lease revenue for its segment results as a component of revenue for all periods presented. See Note 8, "Segment Reporting," for further discussion (dollars in thousands): For the three months ended Established Other Development/ Non- Total For the period ended June 30, 2019 Management, development and other fees $ — $ — $ — $ 1,114 $ 1,114 Rental and non-rental related income (2) 1,817 385 192 — 2,394 Total non-lease revenue (3) 1,817 385 192 1,114 3,508 Lease income (4) 455,732 75,126 39,871 — 570,729 Business interruption insurance proceeds 250 185 — — 435 Total revenue $ 457,799 $ 75,696 $ 40,063 $ 1,114 $ 574,672 For the period ended June 30, 2018 Management, development and other fees $ — $ — $ — $ 954 $ 954 Rental and non-rental related income (2) 1,292 316 85 — 1,693 Total non-lease revenue (3) 1,292 316 85 954 2,647 Lease income (4) 442,294 58,818 31,880 — 532,992 Total revenue $ 443,586 $ 59,134 $ 31,965 $ 954 $ 535,639 For the six months ended Established Other Development/ Non- Total For the period ended June 30, 2019 Management, development and other fees $ — $ — $ — $ 2,252 $ 2,252 Rental and non-rental related income (2) 3,373 1,047 332 — 4,752 Total non-lease revenue (3) 3,373 1,047 332 2,252 7,004 Lease income (4) 906,210 147,121 75,311 — 1,128,642 Business interruption insurance proceeds 404 203 — — 607 Total revenue $ 909,987 $ 148,371 $ 75,643 $ 2,252 $ 1,136,253 For the period ended June 30, 2018 Management, development and other fees $ — $ — $ — $ 1,841 $ 1,841 Rental and non-rental related income (2) 2,218 907 148 — 3,273 Total non-lease revenue (3) 2,218 907 148 1,841 5,114 Lease income (4) 878,200 113,987 63,263 — 1,055,450 Total revenue $ 880,418 $ 114,894 $ 63,411 $ 1,841 $ 1,060,564 __________________________________ (1) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. (2) Amounts include revenue streams related to activities that are not considered components of a lease, including but not limited to, apartment hold fees and application fees, as well as revenue streams not related to leasing activities, including but not limited to, vendor revenue sharing, building advertising, vending and dry cleaning revenue. (3) Represents all revenue accounted for under ASC 2014-09. (4) Amounts include all revenue streams derived from residential and retail rental income and other lease income, which are accounted for under ASU 2016-02. Due to the nature and timing of the Company’s identified revenue streams, there are no material amounts of outstanding or unsatisfied performance obligations as of June 30, 2019 |
Interest Capitalized
Interest Capitalized | 6 Months Ended |
Jun. 30, 2019 | |
Interest Capitalized | |
Interest Capitalized | Interest Capitalized The Company capitalizes interest during the development and redevelopment of real estate assets. Capitalized interest associated with the Company's development or redevelopment activities totaled $17,127,000 and $14,567,000 for the three months ended June 30, 2019 and 2018 , respectively, and $34,716,000 and $27,731,000 for the six months ended June 30, 2019 and 2018 , respectively. |
Mortgage Notes Payable, Unsecur
Mortgage Notes Payable, Unsecured Notes and Credit Facility | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable, Unsecured Notes and Credit Facility | Mortgage Notes Payable, Unsecured Notes and Credit Facility The Company's mortgage notes payable, unsecured notes, variable rate unsecured term loans ("Term Loans") and Credit Facility, as defined below, as of June 30, 2019 and December 31, 2018 are summarized below. The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of June 30, 2019 and December 31, 2018 , as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, "Real Estate Disposition Activities"). 6/30/2019 12/31/2018 Fixed rate unsecured notes (1) $ 5,850,000 $ 5,400,000 Variable rate unsecured notes (1) 300,000 300,000 Term Loans (1) 250,000 250,000 Fixed rate mortgage notes payable - conventional and tax-exempt (2) 517,039 533,215 Variable rate mortgage notes payable - conventional and tax-exempt (2) 497,850 619,140 Total mortgage notes payable, unsecured notes and Term Loans 7,414,889 7,102,355 Credit Facility — — Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility $ 7,414,889 $ 7,102,355 _____________________________________ (1) Balances at June 30, 2019 and December 31, 2018 exclude $9,346 and $9,879 , respectively, of debt discount, and $35,522 and $34,128 , respectively, of deferred financing costs, as reflected in unsecured notes, net on the accompanying Condensed Consolidated Balance Sheets. (2) Balances at June 30, 2019 and December 31, 2018 exclude $14,530 and $14,590 , respectively, of debt discount, and $3,274 and $3,495 , respectively, of deferred financing costs, as reflected in mortgage notes payable on the accompanying Condensed Consolidated Balance Sheets. In addition to the Credit Facility discussed in this Form 10-Q, the following debt activity occurred during the six months ended June 30, 2019 : • In February 2019, the Company amended and restated the $250,000,000 variable rate unsecured term loan that it originally entered into in February 2017, of which $100,000,000 matures in February 2022 with stated pricing of LIBOR plus 0.90% , which remained the same, and $150,000,000 matures in February 2024 with stated pricing of LIBOR plus 0.85% that decreased from LIBOR plus 1.50% . • In April 2019, the Company repaid $13,363,000 of 2.99% fixed rate debt and $33,854,000 of variable rate debt secured by Avalon Natick at par on its maturity date. • In May 2019, the Company repaid $7,635,000 principal amount of variable rate debt secured by Eaves Mission Viejo at par in advance of its scheduled maturity date. The Company utilized $3,706,000 of restricted cash held in a principal reserve fund to repay a portion of the outstanding indebtedness. • In May 2019, the Company repaid $20,800,000 principal amount of variable rate debt secured by AVA Nob Hill at par in advance of its scheduled maturity date. The Company utilized $10,584,000 of restricted cash held in a principal reserve fund to repay a portion of the outstanding indebtedness. • In May 2019, the Company repaid $38,800,000 principal amount of variable rate debt secured by Avalon Campbell at par in advance of its scheduled maturity date. The Company utilized $22,622,000 of restricted cash held in a principal reserve fund to repay a portion of the outstanding indebtedness. • In May 2019, the Company repaid $17,600,000 principal amount of variable rate debt secured by Eaves Pacifica at par in advance of its scheduled maturity date. The Company utilized $10,263,000 of restricted cash held in a principal reserve fund to repay a portion of the outstanding indebtedness. • In May 2019, the Company issued $450,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of approximately $446,877,000 . The notes mature in June 2029 and were issued at a 3.30% interest rate. The effective interest rate of the notes is 3.66% , including the impact of an interest rate hedge and offering costs. In February 2019, the Company entered into a $1,750,000,000 Fifth Amended and Restated Revolving Loan Agreement (the “Credit Facility”) with a syndicate of banks, which replaces its prior $1,500,000,000 credit facility dated as of January 14, 2016. The term of the Credit Facility ends on February 28, 2024. The Credit Facility bears interest at varying levels based on (i) the London Interbank Offered Rate (“LIBOR”) applicable to the period of borrowing for a particular draw of funds from the facility (e.g., one month to maturity, three months to maturity, etc.) and (ii) the rating levels issued for our unsecured notes. The current stated pricing for drawn borrowings is LIBOR plus 0.775% per annum ( 3.15% at June 30, 2019 ), assuming a one month borrowing rate. The stated spread over LIBOR can vary from LIBOR plus 0.70% to LIBOR plus 1.45% based upon the rating of the Company's unsecured notes. The Credit Facility also provides a competitive bid option that is available for borrowings of up to 65% of the Credit Facility amount. This option allows banks that are part of the lender consortium to bid to provide the Company loans at a rate that is lower than the stated pricing provided by the unsecured credit facility. The competitive bid option may result in lower pricing than the stated rate if market conditions allow. The annual facility fee for the Credit Facility remained 0.125% , resulting in a fee of $2,188,000 annually based on the $1,750,000,000 facility size and based on the Company's current credit rating. The Company had no borrowings outstanding under the Credit Facility as of June 30, 2019 and December 31, 2018 . The Company had $35,461,000 and $39,810,000 outstanding in letters of credit that reduced the borrowing capacity as of June 30, 2019 and December 31, 2018 , respectively. In addition, the Company had $100,000 outstanding in additional letters of credit as of June 30, 2019 . In the aggregate, secured notes payable mature at various dates from November 2019 through July 2066, and are secured by certain apartment communities (with a net carrying value of $1,667,725,000 , excluding communities classified as held for sale, as of June 30, 2019 ). The weighted average interest rate of the Company's fixed rate secured notes payable (conventional and tax-exempt) was both 3.8% at June 30, 2019 and December 31, 2018 , respectively. The weighted average interest rate of the Company's variable rate secured notes payable (conventional and tax-exempt) including the effect of certain financing related fees, was 3.5% and 3.4% at June 30, 2019 and December 31, 2018 , respectively. Scheduled payments and maturities of secured notes payable and unsecured notes outstanding at June 30, 2019 are as follows (dollars in thousands): Year Secured notes principal payments Secured notes maturities Unsecured notes and Term Loans maturities Stated interest rate of unsecured notes and Term Loans 2019 1,931 66,285 — N/A 2020 8,782 140,429 400,000 3.625 % 2021 9,304 27,844 250,000 3.950 % 300,000 LIBOR + 0.43% 2022 9,918 — 450,000 2.950 % 100,000 LIBOR + 0.90% 2023 10,739 — 350,000 4.200 % 250,000 2.850 % 2024 11,577 — 300,000 3.500 % 150,000 LIBOR + 0.85% 2025 12,508 — 525,000 3.450 % 300,000 3.500 % 2026 13,545 — 475,000 2.950 % 300,000 2.900 % 2027 13,575 186,505 400,000 3.350 % 2028 20,607 — 450,000 3.200 % Thereafter 200,904 280,436 350,000 3.900 % 300,000 4.150 % 300,000 4.350 % 450,000 3.300 % $ 313,390 $ 701,499 $ 6,400,000 The Company was in compliance at June 30, 2019 with customary financial and other covenants under the Credit Facility, the Term Loans and the Company's fixed rate unsecured notes. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity The following summarizes the changes in equity for the six months ended June 30, 2019 (dollars in thousands): Common stock Additional paid-in capital Accumulated earnings less dividends Accumulated other comprehensive loss Total AvalonBay stockholder's equity Noncontrolling interests Total equity Balance at December 31, 2018 $ 1,385 $ 10,306,588 $ 350,777 $ (26,144 ) $ 10,632,606 $ — $ 10,632,606 Net income attributable to common stockholders — — 170,366 — 170,366 — 170,366 Loss on cash flow hedges, net — — — (7,231 ) (7,231 ) — (7,231 ) Cash flow hedge losses reclassified to earnings — — — 1,468 1,468 — 1,468 Change in redemption value of redeemable noncontrolling interest — — (224 ) — (224 ) — (224 ) Dividends declared to common stockholders ($1.52 per share) — — (212,166 ) — (212,166 ) — (212,166 ) Issuance of common stock, net of withholdings 9 143,202 (1,892 ) — 141,319 — 141,319 Amortization of deferred compensation — 7,861 — — 7,861 — 7,861 Balance at March 31, 2019 $ 1,394 $ 10,457,651 $ 306,861 $ (31,907 ) $ 10,733,999 $ — $ 10,733,999 Net income attributable to common stockholders — — 168,281 — 168,281 — 168,281 Loss on cash flow hedges, net — — — (2,888 ) (2,888 ) — (2,888 ) Cash flow hedge losses reclassified to earnings — — — 1,611 1,611 — 1,611 Change in redemption value of redeemable noncontrolling interest — — (45 ) — (45 ) — (45 ) Noncontrolling interest contribution — — — — — 530 530 Dividends declared to common stockholders ($1.52 per share) — — (212,549 ) — (212,549 ) — (212,549 ) Issuance of common stock, net of withholdings 3 50,803 — — 50,806 — 50,806 Amortization of deferred compensation — 10,785 — — 10,785 — 10,785 Balance at June 30, 2019 $ 1,397 $ 10,519,239 $ 262,548 $ (33,184 ) $ 10,750,000 $ 530 $ 10,750,530 The following summarizes the changes in equity for the six months ended June 30, 2018 (dollars in thousands): Common Additional Accumulated Accumulated Total Balance at December 31, 2017 $ 1,381 $ 10,235,475 $ 188,609 $ (37,419 ) $ 10,388,046 Net income attributable to common stockholders — — 141,643 — 141,643 Gain on cash flow hedges, net — — — 11,501 11,501 Cash flow hedge losses reclassified to earnings — — — 1,756 1,756 Change in redemption value of redeemable noncontrolling interest — — (63 ) — (63 ) Dividends declared to common stockholders ($1.47 per share) — — (203,166 ) — (203,166 ) Issuance of common stock, net of withholdings 1 (12,286 ) 1,143 — (11,142 ) Amortization of deferred compensation — 6,549 — — 6,549 Balance at March 31, 2018 $ 1,382 $ 10,229,738 $ 128,166 $ (24,162 ) $ 10,335,124 Net income attributable to common stockholders — — 254,662 — 254,662 Cash flow hedge losses reclassified to earnings — — — 1,455 1,455 Change in redemption value of redeemable noncontrolling interest — — (291 ) — (291 ) Dividends declared to common stockholders ($1.47 per share) — — (203,472 ) — (203,472 ) Issuance of common stock, net of withholdings — 627 1 — 628 Amortization of deferred compensation — 10,082 — — 10,082 Balance at June 30, 2018 $ 1,382 $ 10,240,447 $ 179,066 $ (22,707 ) $ 10,398,188 As of June 30, 2019 and December 31, 2018 , the Company's charter had authorized for issuance a total of 280,000,000 shares of common stock and 50,000,000 shares of preferred stock. During the six months ended June 30, 2019 , the Company: i. issued 69,686 shares of common stock in connection with stock options exercised; ii. issued 1,092 common shares through the Company's dividend reinvestment plan; iii. issued 150,359 common shares in connection with restricted stock grants and the conversion of performance awards to restricted shares; iv. issued 994,634 shares under CEP IV and CEP V, as discussed below; v. withheld 75,195 common shares to satisfy employees' tax withholding and other liabilities; vi. issued 7,156 common shares through the Employee Stock Purchase Plan; and vii. canceled 1,438 common shares of restricted stock upon forfeiture. Any deferred compensation related to the Company's stock option, restricted stock and performance award grants during the six months ended June 30, 2019 is not reflected on the accompanying Condensed Consolidated Balance Sheets as of June 30, 2019 , and will not be reflected until recognized as compensation cost. In December 2015, the Company commenced a fourth continuous equity program ("CEP IV") under which the Company was able to sell (and/or enter into forward sale agreements for the sale of) up to $1,000,000,000 of its common stock from time to time. In conjunction with CEP IV, the Company engaged sales agents who received compensation up to 2.0% of the gross sales price for shares sold. In May 2019, the Company replaced CEP IV with a new continuous equity program ("CEP V") under which the Company may sell (and/or enter into forward sale agreements for the sale of) up to $1,000,000,000 of its common stock from time to time. Actual sales will depend on a variety of factors to be determined by the Company, including market conditions, the trading price of the Company's common stock and determinations by the Company of the appropriate sources of funding for the Company. In conjunction with CEP V, the Company engaged sales agents who will receive compensation of up to 1.5% of the gross sales price for shares sold. The Company expects that, if entered into, it will physically settle each forward sale agreement on one or more dates specified by the Company on or prior to the maturity date of that particular forward sale agreement, in which case the Company will expect to receive aggregate net cash proceeds at settlement equal to the number of shares underlying the particular forward agreement multiplied by the relevant forward sale price. However, the Company may also elect to cash settle or net share settle a forward sale agreement. In connection with each forward sale agreement, the Company will pay the relevant forward seller, in the form of a reduced initial forward sale price, a commission of up to 1.5% of the sales prices of all borrowed shares of common stock sold. As of June 30, 2019 , there are no outstanding forward sales agreements. During the first quarter of 2019, the Company sold 755,054 shares at an average sales price of $198.26 per share, for net proceeds of $147,450,000 under CEP IV. The Company did not have any sales under CEP IV during the three months ended June 30, 2019 . During the three months ended June 30, 2019 , the Company sold 239,580 shares at an average sales price of $208.70 per share, for net proceeds of $49,250,000 under CEP V. As of June 30, 2019 , the Company had $950,000,000 remaining authorized for issuance under CEP V. |
Investments in Real Estate Enti
Investments in Real Estate Entities | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Real Estate Entities | Investments in Real Estate Entities Investments in Unconsolidated Real Estate Entities As of June 30, 2019 , the Company had investments in six unconsolidated real estate entities with ownership interest percentages ranging from 20.0% to 55.0% , excluding joint ventures formed with Equity Residential as part of the Archstone acquisition. The Company accounts for its investments in unconsolidated real estate entities under the equity method of accounting. The significant accounting policies of the Company's unconsolidated real estate entities are consistent with those of the Company in all material respects. The following is a combined summary of the financial position of the entities accounted for using the equity method discussed above as of the dates presented (dollars in thousands): 6/30/2019 12/31/2018 (unaudited) Assets: Real estate, net $ 1,368,946 $ 1,420,039 Other assets 197,107 45,142 Total assets $ 1,566,053 $ 1,465,181 Liabilities and partners' capital: Mortgage notes payable, net and credit facility $ 834,489 $ 837,311 Other liabilities 157,301 15,624 Partners' capital 574,263 612,246 Total liabilities and partners' capital $ 1,566,053 $ 1,465,181 The following is a combined summary of the operating results of the entities accounted for using the equity method discussed above for the periods presented (dollars in thousands): For the three months ended For the six months ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 (unaudited) (unaudited) Rental and other income $ 35,958 $ 21,916 $ 71,268 $ 43,717 Operating and other expenses (13,670 ) (8,104 ) (27,638 ) (16,409 ) Interest expense, net (8,540 ) (5,571 ) (17,092 ) (11,189 ) Depreciation expense (18,346 ) (5,894 ) (40,042 ) (11,774 ) Net (loss) income $ (4,598 ) $ 2,347 $ (13,504 ) $ 4,345 In conjunction with the acquisition of the Archstone Multifamily Partners AC LP (the "U.S. Fund"), Multifamily Partners AC JV LP (the "AC JV") and Brandywine Apartments of Maryland, LLC ("Brandywine"), the Company incurred costs in excess of its equity in the underlying net assets of the respective investments. These costs represent $30,544,000 and $31,188,000 at June 30, 2019 and December 31, 2018 , respectively, of the Company's respective investment balances. These amounts are being amortized over the lives of the underlying assets as a component of equity in income of unconsolidated real estate entities on the accompanying Condensed Consolidated Statements of Comprehensive Income. Investments in Consolidated Real Estate Entities During the six months ended June 30, 2019 , the Company acquired two consolidated communities: • Avalon Southlands, located in Aurora, CO, which contains 338 apartment homes and was acquired for a purchase price of $91,250,000 . • Avalon Cerritos, located in Cerritos, CA, which contains 132 apartment homes and was acquired for a purchase price of $60,500,000 . The Company accounted for these as asset acquisitions and recorded the acquired assets and assumed liabilities, including identifiable intangibles, at their relative fair values based on the purchase price and acquisition costs incurred. The Company used third party pricing or internal models for the values of the land, a valuation model for the values of the buildings, and an internal model to determine the fair values of the remaining real estate assets and in-place leases. Given the heterogeneous nature of multifamily real estate, the fair values for the land, debt, real estate assets and in-place leases incorporated significant unobservable inputs and therefore are considered to be Level 3 prices within the fair value hierarchy. In conjunction with the development of Avalon Brooklyn Bay, the Company entered into a joint venture agreement to construct a mixed-use building that contains rental apartments, for-sale residential condominium units and related common elements. The Company owns a 70.0% interest in the venture, which represents a 100% interest in the rental apartments, and the venture partner owns the remaining 30.0% interest, which represents a 100% interest in the for-sale residential condominium units. The Company was responsible for the development and construction of the structure, and provided a loan to the venture partner for the venture partner's share of costs. The venture is considered a VIE, and the Company consolidates its interest in the rental apartments and common areas, which are included in total real estate, net on the accompanying Condensed Consolidated Balance Sheets. The development of Avalon Brooklyn Bay was completed during 2018. The Company has a receivable from the venture partner in the form of a variable rate mortgage note, secured by the remaining for-sale residential condominium units. Beginning in 2018, the mortgage note is being repaid by the venture partner with the proceeds the venture partner receives from the sales of the residential condominium units. The balances as of June 30, 2019 and December 31, 2018 were $12,272,000 and $12,819,000 , respectively, representing outstanding principal and interest, net of repayments. These amounts are reported as a component of prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets. The Company recognizes interest income on the accrual basis. As of June 30, 2019 , the Company is pursuing a potential for-sale strategy of the individual condominium units for the residential portion of the 15 West 61st Street development, which is currently under construction and contains 172 residential units and 67,000 square feet of retail space for a projected total capitalized cost of $624,000,000 . The Company expects to complete construction of both the residential and retail components of this development during 2019, and intends to own and operate the retail portion of the development. The Company incurred $945,000 and $158,000 during the three months ended June 30, 2019 and 2018 , respectively, and $1,418,000 and $158,000 for the six months ended June 30, 2019 and 2018 , respectively, in selling, general and administrative costs associated with 15 West 61st Street, included in expensed transaction, development and other pursuit costs, net of recoveries, on the accompanying Condensed Consolidated Statements of Comprehensive Income. Expensed Transaction, Development and Other Pursuit Costs and Casualty and Impairment of Long-Lived Assets The Company capitalizes pre-development costs incurred in pursuit of new development opportunities for which the Company currently believes future development is probable ("Development Rights"). Future development of these Development Rights is dependent upon various factors, including zoning and regulatory approval, rental market conditions, construction costs and the availability of capital. Initial pre-development costs incurred for pursuits for which future development is not yet considered probable are expensed as incurred. In addition, if the status of a Development Right changes, making future development by the Company no longer probable, any capitalized pre-development costs are expensed. The Company expensed costs related to the abandonment of Development Rights and costs for pursuits where development is not yet considered probable, as well as costs incurred in pursuing the acquisition or disposition of assets for which such acquisition and disposition activity did not occur, in the amounts of $1,766,000 and $889,000 for the three months ended June 30, 2019 and 2018 , respectively, and $2,388,000 and $1,689,000 for the six months ended June 30, 2019 and 2018 , respectively. These costs are included in expensed transaction, development and other pursuit costs, net of recoveries on the accompanying Condensed Consolidated Statements of Comprehensive Income. Abandoned pursuit costs can vary greatly, and the costs incurred in any given period may be significantly different in future periods. The Company evaluates its real estate and other long-lived assets for impairment when potential indicators of impairment exist. Such assets are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is not recoverable. If events or circumstances indicate that the carrying amount of a property or long-lived asset may not be recoverable, the Company assesses its recoverability by comparing the carrying amount of the property or long-lived asset to its estimated undiscounted future cash flows. If the carrying amount exceeds the aggregate undiscounted future cash flows, the Company recognizes an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property or long-lived asset. Based on periodic tests of recoverability of long-lived assets, the Company did not recognize any impairment losses for the three and six months ended June 30, 2019 and 2018 . The Company assesses its portfolio of land held for both development and investment for impairment if the intent of the Company changes with respect to either the development of, or the expected holding period for, the land. During the three and six months ended June 30, 2019 and 2018 , the Company did not recognize any impairment charges on its investment in land. The Company evaluates its unconsolidated investments for other than temporary impairment, considering both the extent and amount by which the carrying value of the investment exceeds the fair value, and the Company's intent and ability to hold the investment to recover its carrying value. The Company also evaluates its proportionate share of any impairment of assets held by unconsolidated investments. There were no other than temporary impairment losses recognized by any of the Company's investments in unconsolidated real estate entities during the three and six months ended June 30, 2019 and 2018 . |
Real Estate Disposition Activit
Real Estate Disposition Activities | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate Disposition Activities | Real Estate Disposition Activities The following real estate sales occurred during the six months ended June 30, 2019 : • In January 2019, the Company sold Oakwood Arlington, located in Arlington, VA, containing an aggregate of 184 apartment homes for $70,000,000 . The Company's gain on disposition was $16,382,000 , reported in gain on sale of communities on the accompanying Condensed Consolidated Statements of Comprehensive Income. • In January and March 2019, the Company sold two undeveloped land parcels for an aggregate sale price of $3,680,000 . The Company recognized a gain on disposition of $214,000 , reported in gain on other real estate transactions, net on the accompanying Condensed Consolidated Statements of Comprehensive Income. • In April 2019, the Company sold Archstone Toscano, located in Houston, TX, containing an aggregate of 474 apartment homes for $98,000,000 . The Company's gain on disposition was $20,604,000 , reported in gain on sale of communities on accompanying Condensed Consolidated Statement of Comprehensive Income. At June 30, 2019 , the Company had one community that qualified as held for sale. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Obligations The Company owns 11 apartment communities, one community under development, and two commercial properties, located on land subject to land leases expiring between October 2026 and March 2142. All of the ground leases, except for one of the apartment communities, are accounted for as operating leases, for which the Company recognizes rental expense on a straight-line basis over the lease term. These operating leases have varying rental escalation terms, primarily based on variables determined at future dates such as changes in the Consumer Price Index, and five of these leases have purchase options exercisable through 2095. In addition, the Company is party to 15 leases for its corporate and regional offices with varying terms through 2031, all of which are accounted for as operating leases, two of which have been executed and do not commence until 2020. As of June 30, 2019 , the Company has total operating lease assets of $100,377,000 and lease obligations of $117,938,000 , reported as components of right of use lease assets and lease liabilities, respectively, on the accompanying Condensed Consolidated Balance Sheets. The Company incurred costs of $3,568,000 and $7,105,000 for the three and six months ended June 30, 2019 , respectively, related to operating leases. One apartment community is located on land subject to a land lease which is accounted for as a finance lease and has the option for the Company to purchase the land at some point during the lease term which expires in 2046. In addition to the leases described above, the Company is party to two leases for portions of parking garages, one adjacent to an apartment community and one adjacent to a community under development, accounted for as finance leases and subject to the Company's lease accounting policies discussed in Note 1, “Organization, Basis of Presentation and Significant Accounting Policies.” The Company has total finance lease assets of $22,004,000 and lease obligations of $20,225,000 , reported as components of right of use lease assets and lease liabilities, respectively, on the accompanying Condensed Consolidated Balance Sheets. The following table details the weighted average remaining lease term and discount rates for the Company’s ground and office leases: Weighted-average remaining lease term - finance leases 27 years Weighted-average remaining lease term - operating leases 54 years Weighted-average discount rate - finance leases 4.63 % Weighted-average discount rate - operating leases 4.45 % The following tables details the future minimum lease payments under the Company's current leases and a reconciliation of undiscounted and discounted cash flows for operating and finance leases (dollars in thousands): Payments due by period 2019 2020 2021 2022 2023 Thereafter Operating Lease Obligations $ 6,676 $ 11,787 $ 13,432 $ 13,355 $ 12,810 $ 372,696 Finance Lease Obligations 538 1,077 1,080 1,082 1,084 41,220 $ 7,214 $ 12,864 $ 14,512 $ 14,437 $ 13,894 $ 413,916 Total undiscounted cash flows Total lease liabilities Difference between discounted and undiscounted cash flows Operating Lease Obligations $ 430,756 $ 117,938 $ 312,818 Finance Lease Obligations 46,081 20,225 25,856 $ 476,837 $ 138,163 $ 338,674 |
Commitments and Contingencies | Commitments and Contingencies Lease Obligations The Company owns 11 apartment communities, one community under development, and two commercial properties, located on land subject to land leases expiring between October 2026 and March 2142. All of the ground leases, except for one of the apartment communities, are accounted for as operating leases, for which the Company recognizes rental expense on a straight-line basis over the lease term. These operating leases have varying rental escalation terms, primarily based on variables determined at future dates such as changes in the Consumer Price Index, and five of these leases have purchase options exercisable through 2095. In addition, the Company is party to 15 leases for its corporate and regional offices with varying terms through 2031, all of which are accounted for as operating leases, two of which have been executed and do not commence until 2020. As of June 30, 2019 , the Company has total operating lease assets of $100,377,000 and lease obligations of $117,938,000 , reported as components of right of use lease assets and lease liabilities, respectively, on the accompanying Condensed Consolidated Balance Sheets. The Company incurred costs of $3,568,000 and $7,105,000 for the three and six months ended June 30, 2019 , respectively, related to operating leases. One apartment community is located on land subject to a land lease which is accounted for as a finance lease and has the option for the Company to purchase the land at some point during the lease term which expires in 2046. In addition to the leases described above, the Company is party to two leases for portions of parking garages, one adjacent to an apartment community and one adjacent to a community under development, accounted for as finance leases and subject to the Company's lease accounting policies discussed in Note 1, “Organization, Basis of Presentation and Significant Accounting Policies.” The Company has total finance lease assets of $22,004,000 and lease obligations of $20,225,000 , reported as components of right of use lease assets and lease liabilities, respectively, on the accompanying Condensed Consolidated Balance Sheets. The following table details the weighted average remaining lease term and discount rates for the Company’s ground and office leases: Weighted-average remaining lease term - finance leases 27 years Weighted-average remaining lease term - operating leases 54 years Weighted-average discount rate - finance leases 4.63 % Weighted-average discount rate - operating leases 4.45 % The following tables details the future minimum lease payments under the Company's current leases and a reconciliation of undiscounted and discounted cash flows for operating and finance leases (dollars in thousands): Payments due by period 2019 2020 2021 2022 2023 Thereafter Operating Lease Obligations $ 6,676 $ 11,787 $ 13,432 $ 13,355 $ 12,810 $ 372,696 Finance Lease Obligations 538 1,077 1,080 1,082 1,084 41,220 $ 7,214 $ 12,864 $ 14,512 $ 14,437 $ 13,894 $ 413,916 Total undiscounted cash flows Total lease liabilities Difference between discounted and undiscounted cash flows Operating Lease Obligations $ 430,756 $ 117,938 $ 312,818 Finance Lease Obligations 46,081 20,225 25,856 $ 476,837 $ 138,163 $ 338,674 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company's reportable operating segments include Established Communities, Other Stabilized Communities, and Development/Redevelopment Communities. Annually as of January 1, the Company determines which of its communities fall into each of these categories and generally maintains that classification throughout the year for the purpose of reporting segment operations, unless disposition or redevelopment plans regarding a community change. In addition, the Company owns land for future development and has other corporate assets that are not allocated to an operating segment. The Company's segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing each segment's performance. The Company's chief operating decision maker ("CODM") is comprised of several members of its executive management team who use net operating income ("NOI") as the primary financial measure for Established Communities and Other Stabilized Communities. NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excluding corporate-level income (including management, development and other fees), corporate-level property management and other indirect operating expenses, expensed transaction, development and other pursuit costs, net of recoveries, interest expense, net, loss on extinguishment of debt, net, general and administrative expense, equity in income of unconsolidated real estate entities, depreciation expense, corporate income tax expense, casualty and impairment (gain) loss, net, gain on sale of communities, (gain) loss on other real estate transactions, net and net operating income from real estate assets sold or held for sale. Although the Company considers NOI a useful measure of a community's or communities' operating performance, NOI should not be considered an alternative to net income or net cash flow from operating activities, as determined in accordance with GAAP. NOI excludes a number of income and expense categories as detailed in the reconciliation of NOI to net income. A reconciliation of NOI to net income for the three and six months ended June 30, 2019 and 2018 is as follows (dollars in thousands): For the three months ended For the six months ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Net income $ 168,305 $ 254,543 $ 338,723 $ 396,133 Indirect operating expenses, net of corporate income 23,018 19,677 42,740 38,636 Expensed transaction, development and other pursuit costs, net of recoveries 2,711 1,047 3,806 1,847 Interest expense, net 50,010 56,585 97,902 111,698 Loss on extinguishment of debt, net 229 642 509 1,039 General and administrative expense 18,965 15,209 32,671 29,640 Equity in (income) loss of unconsolidated real estate entities (197 ) (789 ) 863 (2,529 ) Depreciation expense 162,693 156,685 324,749 315,743 Income tax expense (refund) — 58 (6 ) 58 Casualty and impairment gain, net — — — (58 ) Gain on sale of communities (20,530 ) (105,201 ) (35,365 ) (105,201 ) Gain on other real estate transactions, net (34 ) (370 ) (300 ) (323 ) Net operating income from real estate assets sold or held for sale (1,495 ) (19,680 ) (4,077 ) (40,377 ) Net operating income $ 403,675 $ 378,406 $ 802,215 $ 746,306 The following is a summary of NOI from real estate assets sold or held for sale for the periods presented (dollars in thousands): For the three months ended For the six months ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Rental income from real estate assets sold or held for sale $ 2,591 $ 30,024 $ 7,193 $ 61,857 Operating expenses from real estate assets sold or held for sale (1,096 ) (10,344 ) (3,116 ) (21,480 ) Net operating income from real estate assets sold or held for sale $ 1,495 $ 19,680 $ 4,077 $ 40,377 The primary performance measure for communities under development or redevelopment depends on the stage of completion. While under development, management monitors actual construction costs against budgeted costs as well as lease-up pace and rent levels compared to budget. The following table provides details of the Company's segment information as of the dates specified (dollars in thousands). The segments are classified based on the individual community's status at January 1, 2019 . Segment information for the three and six months ended June 30, 2019 and 2018 has been adjusted to exclude the real estate assets that were sold from January 1, 2018 through June 30, 2019 , or otherwise qualify as held for sale as of June 30, 2019 , as described in Note 6, "Real Estate Disposition Activities." In addition to NOI, the Company's CODM considers total revenue in assessing each segment's performance. As discussed in Note 1, "Organization, Basis of Presentation and Significant Accounting Policies," the Company changed its presentation of charges for uncollectible lease revenue beginning with the three and six months ended June 30, 2019 , including it as an adjustment to revenue and not as a component of operating expenses, as it is presented for prior periods on the accompanying Condensed Consolidated Statement of Comprehensive Income. Consistent with how the Company's CODM evaluates total revenue, and to provide comparability between periods presented in the Company's segment reporting, the Company has included charges for uncollectible lease revenue for its segment results as a component of revenue for all periods presented in the following table. Total revenue for the three and six months ended June 30, 2018 as presented in the following table includes $3,576,000 and $7,611,000 , respectively, of charges for uncollectible lease revenue. For the three months ended For the six months ended Total NOI Total NOI Gross real estate (1) For the period ended June 30, 2019 Established New England $ 63,819 $ 41,907 $ 127,092 $ 83,715 $ 2,118,237 Metro NY/NJ 103,073 73,212 204,276 145,055 3,531,694 Mid-Atlantic 73,094 51,073 145,103 102,125 2,674,020 Pacific Northwest 28,224 20,605 56,026 40,815 987,121 Northern California 88,301 67,384 175,661 135,622 2,776,718 Southern California 101,288 72,593 201,829 145,288 3,589,188 Total Established 457,799 326,774 909,987 652,620 15,676,978 Other Stabilized 75,696 50,813 148,371 100,024 3,327,804 Development / Redevelopment 40,063 26,088 75,643 49,571 3,719,999 Land Held for Development N/A N/A N/A N/A 18,606 Non-allocated (2) 1,114 N/A 2,252 N/A 98,492 Total $ 574,672 $ 403,675 $ 1,136,253 $ 802,215 $ 22,841,879 For the period ended June 30, 2018 Established New England $ 62,110 $ 40,750 $ 123,318 $ 80,441 $ 2,109,273 Metro NY/NJ 99,745 70,412 197,774 139,429 3,518,123 Mid-Atlantic 71,099 49,917 140,868 98,772 2,662,775 Pacific Northwest 26,894 19,142 53,381 37,766 984,029 Northern California 85,559 66,133 169,983 130,946 2,764,856 Southern California 98,179 71,482 195,094 141,082 3,561,270 Total Established 443,586 317,836 880,418 628,436 15,600,326 Other Stabilized 59,134 38,776 114,894 75,000 2,764,061 Development / Redevelopment 31,965 21,794 63,411 42,870 2,618,434 Land Held for Development N/A N/A N/A N/A 130,802 Non-allocated (2) 954 N/A 1,841 N/A 79,703 Total $ 535,639 $ 378,406 $ 1,060,564 $ 746,306 $ 21,193,326 __________________________________ (1) Does not include gross real estate assets held for sale of $77,030 as of June 30, 2019 and gross real estate either sold or classified as held for sale subsequent to June 30, 2018 of $1,153,352 . (2) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans As part of its long term compensation plans, the Company has granted stock options, performance awards and restricted stock. Details of the outstanding awards and activity are presented below. Information with respect to stock options granted under the Company's Second Amended and Restated 2009 Equity Incentive Plan (the "2009 Plan") for the six months ended June 30, 2019 , is as follows: 2009 Plan shares Weighted average exercise price per share Options Outstanding, December 31, 2018 124,212 $ 128.84 Exercised (69,686 ) 128.50 Granted — — Forfeited — — Options Outstanding, June 30, 2019 54,526 $ 129.28 Options Exercisable, June 30, 2019 49,861 $ 126.30 Information with respect to performance awards granted is as follows: Performance awards Weighted average grant date fair value per award Outstanding at December 31, 2018 267,129 $ 157.21 Granted (1) 79,840 200.69 Change in awards based on performance (2) (16,760 ) 142.03 Converted to restricted stock or options (73,072 ) 142.03 Forfeited (154 ) 161.96 Outstanding at June 30, 2019 256,983 $ 176.03 __________________________________ (1) The amount of restricted stock that ultimately may be earned is based on the total shareholder return metrics related to the Company's common stock for 47,091 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 32,749 performance awards. (2) Represents the change in the number of performance awards earned based on actual performance achievement for the performance period. The Company used a Monte Carlo model to assess the compensation cost associated with the portion of the performance awards granted in 2019 for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows: 2019 Dividend yield 3.1% Estimated volatility over the life of the plan (1) 13.9% - 18.8% Risk free rate 2.46% - 2.57% Estimated performance award value based on total shareholder return measure $204.15 __________________________________ (1) Estimated volatility over the life of the plan is using 50% historical volatility and 50% implied volatility. For the portion of the performance awards granted in 2019 for which achievement will be determined by using financial metrics, the compensation cost was based on the grant date fair value of $195.72 , and the Company's estimate of corporate achievement for the financial metrics. Information with respect to restricted stock granted is as follows: Restricted stock shares Restricted stock shares weighted average grant date fair value per share Restricted stock shares converted from performance awards Outstanding at December 31, 2018 160,411 $ 166.33 209,238 Granted - restricted stock shares 77,287 195.96 73,072 Vested - restricted stock shares (77,244 ) 166.52 (110,366 ) Forfeited (1,438 ) 174.19 — Outstanding at June 30, 2019 159,016 $ 180.57 171,944 Total employee stock-based compensation cost recognized in income was $13,129,000 and $9,843,000 for the six months ended June 30, 2019 and 2018 , respectively, and total capitalized stock-based compensation cost was $5,374,000 and $5,490,000 for the six months ended June 30, 2019 and 2018 , respectively. At June 30, 2019 , there was a total unrecognized compensation cost of $41,250,000 for unvested restricted stock and performance awards, which does not include forfeitures, and is expected to be recognized over a weighted average period of 2.3 years. |
Related Party Arrangements
Related Party Arrangements | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Arrangements | Related Party Arrangements Unconsolidated Entities The Company manages unconsolidated real estate entities for which it receives asset management, property management, development and redevelopment fee revenue. From these entities, the Company earned fees of $1,114,000 and $954,000 for the three months ended June 30, 2019 and 2018 , respectively, and $2,252,000 and $1,841,000 for the six months ended June 30, 2019 and 2018 , respectively. In addition, the Company has outstanding receivables associated with its property and construction management role of $2,271,000 and $2,519,000 as of June 30, 2019 and December 31, 2018 , respectively. Director Compensation The Company recorded non-employee director compensation expense relating to restricted stock grants and deferred stock awards in the amount of $405,000 and $357,000 in the three months ended June 30, 2019 and 2018 , respectively, and $830,000 and $746,000 in the six months ended June 30, 2019 and 2018 , respectively, as a component of general and administrative expense. Deferred compensation relating to these restricted stock grants and deferred stock awards to non-employee directors was $1,315,000 and $571,000 on June 30, 2019 and December 31, 2018 , respectively, reported as a component of prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Financial Instruments Carried at Fair Value Derivative Financial Instruments The Company uses interest rate swap and interest rate cap agreements to manage its interest rate risk. These instruments are carried at fair value in the Company's financial statements. In adjusting the fair value of its derivative contracts for the effect of counterparty nonperformance risk, the Company has considered the impact of its net position with a given counterparty, as well as any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. The Company minimizes its credit risk on these transactions by dealing with major, creditworthy financial institutions which have an A or better credit rating by the Standard & Poor's Ratings Group. As part of its on-going control procedures, the Company monitors the credit ratings of counterparties and the exposure of the Company to any single entity, thus reducing credit risk concentration. The Company believes the likelihood of realizing losses from counterparty nonperformance is remote. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, such as interest rate, term to maturity and volatility, the credit valuation adjustments associated with its derivatives use Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by itself and its counterparties. As of June 30, 2019 , the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined it is not significant. As a result, the Company has determined that its derivative valuations are classified in Level 2 of the fair value hierarchy. The following table summarizes the consolidated derivative positions at June 30, 2019 (dollars in thousands): Non-designated Hedges Cash Flow Interest Rate Swaps Notional balance $ 446,177 $ 250,000 Weighted average interest rate (1) 3.5 % N/A Weighted average swapped/capped interest rate 6.5 % 2.2 % Earliest maturity date Jan 2021 Oct 2020 Latest maturity date Nov 2021 Oct 2020 ____________________________________ (1) Represents the weighted average interest rate on the hedged debt. During the three and six months ended June 30, 2019 , in conjunction with the issuance of the Company's 3.30% notes due 2029 in May 2019, the Company settled $250,000,000 of forward interest rate swap agreements designated as cash flow hedges of the interest rate variability on the forecasted issuance of the unsecured notes, making a payment of $12,309,000 . The Company has deferred this amount in accumulated other comprehensive loss on the accompanying Condensed Consolidated Balance Sheets, and will recognize the impact as a component of interest expense, net, over the 10 year term of the debt. In addition, during the three and six months ended June 30, 2019 , the Company entered into $250,000,000 of new forward interest rate swap agreements executed to reduce the impact of variability in interest rates on a portion of the Company's expected debt issuance activity in 2020. As of June 30, 2019 , the Company had $250,000,000 outstanding forward interest rate swap agreements. At maturity of the remaining outstanding swap agreements, the Company expects to cash settle the contracts and either pay or receive cash for the then current fair value. Assuming that the Company issues the debt as expected, the hedging impact from these positions will then be recognized over the life of the issued debt as a yield adjustment. The Company had four derivatives designated as cash flow hedges and five derivatives not designated as hedges at June 30, 2019 . Fair value changes for derivatives not in qualifying hedge relationships for the three and six months ended June 30, 2019 and 2018 were not material. During the six months ended June 30, 2019 , the Company deferred $10,119,000 of losses for cash flow hedges reported as a component of accumulated other comprehensive loss. The following table summarizes the deferred losses reclassified from accumulated other comprehensive loss as a component of interest expense, net (dollars in thousands): For the three months ended For the six months ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Cash flow hedge losses reclassified to earnings $ 1,611 $ 1,455 $ 3,079 $ 3,213 The Company anticipates reclassifying approximately $6,983,000 of net hedging losses from accumulated other comprehensive loss into earnings within the next 12 months as an offset to the hedged item during this period. The Company did not have any derivatives designated as fair value hedges as of June 30, 2019 and 2018 . Redeemable Noncontrolling Interests The Company is party to investments in two consolidated ventures, which contain redemption options (the "Puts") that allow joint venture partners of the Company to require the Company to purchase their interests in the investment at a guaranteed minimum amount. The Puts are payable in cash. The Company determines the fair value of the Puts based on unobservable inputs considering the assumptions that market participants would make in pricing the obligations, applying a guaranteed rate of return to the joint venture partners' net capital contribution balances as of period end. Given the significance of the unobservable inputs, the valuations are classified in Level 3 of the fair value hierarchy. The Company issued units of limited partnership interest in DownREITs which provide the DownREIT limited partners the ability to present all or some of their units for redemption for cash as determined by the partnership agreement. Under the DownREIT agreements, for each limited partnership unit, the limited partner is entitled to receive cash in the amount equal to the fair value of the Company's common stock on or about the date of redemption. In lieu of cash redemption, the Company may elect to exchange such units for an equal number of shares of the Company's common stock. The limited partnership units in the DownREITs are valued using the market price of the Company's common stock, a Level 1 price under the fair value hierarchy. Financial Instruments Not Carried at Fair Value Cash and Cash Equivalents Cash and cash equivalent balances are held with various financial institutions within accounts designed to preserve principal. The Company monitors credit ratings of these financial institutions and the concentration of cash and cash equivalent balances with any one financial institution and believes the likelihood of realizing material losses related to cash and cash equivalent balances is remote. Cash and cash equivalents are carried at their face amounts, which reasonably approximate their fair values and are Level 1 within the fair value hierarchy. Other Financial Instruments Rents and other receivables and prepaid expenses, accounts and construction payable and accrued expenses and other liabilities are carried at their face amounts, which reasonably approximate their fair values. The Company values its unsecured notes using quoted market prices, a Level 1 price within the fair value hierarchy. The Company values its notes payable and outstanding amounts under the Credit Facility and Term Loans using a discounted cash flow analysis on the expected cash flows of each instrument. This analysis reflects the contractual terms of the instrument, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The process also considers credit valuation adjustments to appropriately reflect the Company's nonperformance risk. The Company has concluded that the value of its notes payable and amounts outstanding under its Credit Facility and Term Loans are Level 2 prices as the majority of the inputs used to value its positions fall within Level 2 of the fair value hierarchy. Financial Instruments Measured/Disclosed at Fair Value on a Recurring Basis The following tables summarize the classification between the three levels of the fair value hierarchy of the Company's financial instruments measured/disclosed at fair value on a recurring basis (dollars in thousands): 6/30/2019 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Cash Flow Hedges Interest Rate Swaps - Assets $ 18 $ — $ 18 $ — Interest Rate Swaps - Liabilities (4,198 ) — (4,198 ) — Puts (341 ) — — (341 ) DownREIT units (1,524 ) (1,524 ) — — Indebtedness Fixed rate unsecured notes (6,097,629 ) (6,097,629 ) — — Secured notes and variable rate unsecured indebtedness (1,417,624 ) — (1,417,624 ) — Total $ (7,521,298 ) $ (6,099,153 ) $ (1,421,804 ) $ (341 ) 12/31/2018 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Non-Designated Hedges Interest Rate Caps $ 2 $ — $ 2 $ — Cash Flow Hedges Interest Rate Swaps - Liabilities (6,366 ) — (6,366 ) — Puts (465 ) — — (465 ) DownREIT units (1,305 ) (1,305 ) — — Indebtedness Fixed rate unsecured notes (5,268,277 ) (5,268,277 ) — — Secured notes and variable rate unsecured indebtedness (1,505,876 ) — (1,505,876 ) — Total $ (6,782,287 ) $ (5,269,582 ) $ (1,512,240 ) $ (465 ) |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through the date on which this Form 10-Q was filed, the date on which these financial statements were issued, and identified the items below for discussion. In July and August 2019, the Company had the following activity. • The Company sold AVA Stamford, a wholly-owned operating community, located in Stamford, CT. AVA Stamford contains 306 apartment homes, was sold for $105,000,000 and was classified as held for sale as of June 30, 2019 . • The Company acquired Portico at Silver Spring Metro located in Silver Spring, MD, containing 151 apartment homes, for a purchase price of $43,450,000 . • The Company entered into agreements to sell three wholly-owned operating communities containing an aggregate of 696 apartment homes and aggregate net real estate of $84,340,000 as of June 30, 2019 , resulting in the communities qualifying as held for sale subsequent to June 30, 2019 . The Company sold one of these communities, Archstone Lexington, located in Flower Mound, TX, containing 222 apartment homes for $45,100,000 . The Company expects to complete the sales of the other two communities in the third quarter of 2019. • In conjunction with the disposition of Archstone Lexington, the Company repaid $21,700,000 principal amount of variable rate debt secured by Archstone Lexington at par in advance of its October 2020 maturity date. • The Company entered into a $30,250,000 fixed rate note secured by Avalon Cerritos, with a contractual interest rate of 3.26% , maturing in August 2029 . |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation AvalonBay Communities, Inc. (the "Company," which term, unless the context otherwise requires, refers to AvalonBay Communities, Inc. together with its subsidiaries), is a Maryland corporation that has elected to be treated as a real estate investment trust ("REIT") for federal income tax purposes under the Internal Revenue Code of 1986 (the "Code"). The Company focuses on the development, redevelopment, acquisition, ownership and operation of multifamily communities primarily in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. At June 30, 2019 , the Company owned or held a direct or indirect ownership interest in 273 operating apartment communities containing 79,161 apartment homes in 12 states and the District of Columbia, of which seven communities containing 3,026 apartment homes were under redevelopment. In addition, the Company owned or held a direct or indirect ownership interest in 21 communities under development that are expected to contain an aggregate of 7,023 apartment homes when completed, as well as a mixed-use project being developed in which the Company is currently pursuing a potential for-sale strategy of individual condominium units. The Company also owned or held a direct or indirect ownership interest in land or rights to land on which the Company expects to develop an additional 28 communities that, if developed as expected, will contain an estimated 9,004 apartment homes. The interim unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements required by GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements should be read in conjunction with the financial statements and notes included in the Company's 2018 Annual Report on Form 10-K. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the operating results for the full year. Management believes the disclosures are adequate to ensure the information presented is not misleading. In the opinion of management, all adjustments and eliminations, consisting only of normal, recurring adjustments necessary for a fair presentation of the financial statements for the interim periods, have been included. Capitalized terms used without definition have meanings provided elsewhere in this Form 10-Q. |
Earnings per Common Share | Earnings per Common Share Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common shareholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per share ("EPS"). Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. The Company's earnings per common share are determined as follows (dollars in thousands, except per share data): For the three months ended For the six months ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Basic and diluted shares outstanding Weighted average common shares - basic 139,113,390 137,840,045 138,724,479 137,802,461 Weighted average DownREIT units outstanding 7,500 7,500 7,500 7,500 Effect of dilutive securities 497,341 367,465 495,397 374,334 Weighted average common shares - diluted 139,618,231 138,215,010 139,227,376 138,184,295 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 168,281 $ 254,662 $ 338,647 $ 396,305 Net income allocated to unvested restricted shares (435 ) (727 ) (935 ) (1,167 ) Net income attributable to common stockholders, adjusted $ 167,846 $ 253,935 $ 337,712 $ 395,138 Weighted average common shares - basic 139,113,390 137,840,045 138,724,479 137,802,461 Earnings per common share - basic $ 1.21 $ 1.84 $ 2.43 $ 2.87 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 168,281 $ 254,662 $ 338,647 $ 396,305 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 12 11 23 22 Adjusted net income attributable to common stockholders $ 168,293 $ 254,673 $ 338,670 $ 396,327 Weighted average common shares - diluted 139,618,231 138,215,010 139,227,376 138,184,295 Earnings per common share - diluted $ 1.21 $ 1.84 $ 2.43 $ 2.87 All options to purchase shares of common stock outstanding as of June 30, 2019 and 2018 are included in the computation of diluted earnings per share. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities |
Legal and Other Contingencies | Legal and Other Contingencies The Company is involved in various claims and/or administrative proceedings that arise in the ordinary course of its business. While no assurances can be given, the Company does not currently believe that any of these outstanding litigation matters, individually or in the aggregate, will have a material adverse effect on its financial condition or results of operations. |
Real Estate, Policy | Acquisitions of Investments in Real Estate The Company accounts for acquisitions of investments in real estate in accordance with the authoritative guidance for the initial measurement, which first requires that the Company determine if the real estate investment is the acquisition of an asset or a business combination. Under either model, the Company must identify and determine the fair value of any assets acquired, liabilities assumed and any noncontrolling interest in the acquiree. Typical assets acquired and liabilities assumed include land, building, furniture, fixtures and equipment, debt and identified intangible assets and liabilities, consisting of the value of above or below market leases and in-place leases. In making estimates of fair values for purposes of allocating purchase price, the Company utilizes various sources, including its own analysis of recently acquired and existing comparable properties in its portfolio and other market data. Consideration for acquisitions is typically in the form of cash unless otherwise disclosed. For a business combination, the Company records the assets acquired and liabilities assumed based on the fair value of each respective item. For an asset acquisition, the allocation of the purchase price is based on the relative fair value of the net assets. The Company expenses all applicable acquisition costs for a business combination and capitalizes all applicable acquisition costs for an asset acquisition. The Company expects that acquisitions of individual operating communities will generally be viewed as asset acquisitions. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
Reclassifications | Reclassifications |
Lessee Considerations | Lessee Considerations The Company assessed whether a contract is or contains a lease based on whether the contract conveys the right to control the use of an identified asset, including specified portions of larger assets, for a period of time in exchange for consideration. The Company identified leases as contracts in which it has the right to direct the use of the property and obtain all of the economic benefits. The Company’s leases include both fixed and variable lease payments, which are based on an index or rate such as the consumer price index (CPI) or percentage rents based on total sales. When evaluating what payments to include in the measurement of the lease liability, the Company included lease payments that depend on an index or rate only. Variable lease payments that are not based on an index or rate including changes in CPI, percentage rents based on total sales, fair market value resets and others are not included in the measurement of the lease liability, but will be recognized as variable lease expense in the period in which they are incurred. For leases that have options to extend the term or terminate the lease early, the Company considered whether these options are reasonably certain to be exercised, taking into account physical improvements, installation or relocation costs, rent during the option periods and the cost of returning the assets to a contractually specified condition. The Company only factored the impact of options into the lease term if the option was considered reasonably certain to be exercised. |
Lessor Considerations | Lessor Considerations The Company evaluated leases in which it is the lessor, which are composed of residential and retail leases at its apartment communities. The accounting model for lessors did not significantly change as a result of ASU 2016-02, with the impacts primarily related to the accounting for sales-type and direct financing leases. The Company evaluated its residential and retail leases determining that they continue to be considered to be operating leases. For lease agreements that provide for rent concessions and/or scheduled fixed and determinable rent increases, rental income is recognized on a straight-line basis over the noncancellable term of the lease. The Company’s residential lease term is generally one year. Some of the Company’s retail leases have fixed-price renewal options, and the lessee may be able to exercise its renewal option at an amount less than the fair value of the rent at such time. The Company only includes renewal options in the lease term, if at the commencement of the lease, the option period rent is reasonably certain to be less than the base period rent and therefore exercised by the lessee. Additionally, for the Company’s residential and retail leases, which are comprised of the lease component and common area maintenance as a non-lease component, the Company determined that (i) the leases are operating leases, (ii) the lease component is the predominant component and (iii) that all components of its operating leases share the same timing and pattern of transfer. The Company changed its presentation of charges for uncollectible lease revenue associated with its residential and retail leasing activity, reflecting those amounts as a component of rental and other income on the accompanying Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2019 . However, in accordance with its prospective adoption of the lease standard, the Company did not adjust the prior year period presentation of charges for uncollectible lease revenue associated with its residential and retail leasing activity as a component of operating expenses, excluding property taxes, on the on the accompanying Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2018 . |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of earnings per common share | The Company's earnings per common share are determined as follows (dollars in thousands, except per share data): For the three months ended For the six months ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Basic and diluted shares outstanding Weighted average common shares - basic 139,113,390 137,840,045 138,724,479 137,802,461 Weighted average DownREIT units outstanding 7,500 7,500 7,500 7,500 Effect of dilutive securities 497,341 367,465 495,397 374,334 Weighted average common shares - diluted 139,618,231 138,215,010 139,227,376 138,184,295 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 168,281 $ 254,662 $ 338,647 $ 396,305 Net income allocated to unvested restricted shares (435 ) (727 ) (935 ) (1,167 ) Net income attributable to common stockholders, adjusted $ 167,846 $ 253,935 $ 337,712 $ 395,138 Weighted average common shares - basic 139,113,390 137,840,045 138,724,479 137,802,461 Earnings per common share - basic $ 1.21 $ 1.84 $ 2.43 $ 2.87 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 168,281 $ 254,662 $ 338,647 $ 396,305 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 12 11 23 22 Adjusted net income attributable to common stockholders $ 168,293 $ 254,673 $ 338,670 $ 396,327 Weighted average common shares - diluted 139,618,231 138,215,010 139,227,376 138,184,295 Earnings per common share - diluted $ 1.21 $ 1.84 $ 2.43 $ 2.87 |
Disaggregation of revenue | The following table provides details of the Company’s revenue streams disaggregated by the Company’s reportable operating segments, further discussed in Note 8, “Segment Reporting,” for the three and six months ended June 30, 2019 and 2018 . Segment information for total revenue has been adjusted to exclude the real estate assets that were sold from January 1, 2018 through June 30, 2019 , or otherwise qualify as held for sale as of June 30, 2019 , as described in Note 6, "Real Estate Disposition Activities." Additionally, as discussed above, the Company changed its presentation of charges for uncollectible lease revenue for the three and six months ended June 30, 2019 , including it as an adjustment to revenue and not as a component of operating expenses, as it is presented for prior periods on the accompanying Condensed Consolidated Statement of Comprehensive Income. In order to provide comparability between periods presented in the Company's segment reporting, the Company has included charges for uncollectible lease revenue for its segment results as a component of revenue for all periods presented. See Note 8, "Segment Reporting," for further discussion (dollars in thousands): For the three months ended Established Other Development/ Non- Total For the period ended June 30, 2019 Management, development and other fees $ — $ — $ — $ 1,114 $ 1,114 Rental and non-rental related income (2) 1,817 385 192 — 2,394 Total non-lease revenue (3) 1,817 385 192 1,114 3,508 Lease income (4) 455,732 75,126 39,871 — 570,729 Business interruption insurance proceeds 250 185 — — 435 Total revenue $ 457,799 $ 75,696 $ 40,063 $ 1,114 $ 574,672 For the period ended June 30, 2018 Management, development and other fees $ — $ — $ — $ 954 $ 954 Rental and non-rental related income (2) 1,292 316 85 — 1,693 Total non-lease revenue (3) 1,292 316 85 954 2,647 Lease income (4) 442,294 58,818 31,880 — 532,992 Total revenue $ 443,586 $ 59,134 $ 31,965 $ 954 $ 535,639 For the six months ended Established Other Development/ Non- Total For the period ended June 30, 2019 Management, development and other fees $ — $ — $ — $ 2,252 $ 2,252 Rental and non-rental related income (2) 3,373 1,047 332 — 4,752 Total non-lease revenue (3) 3,373 1,047 332 2,252 7,004 Lease income (4) 906,210 147,121 75,311 — 1,128,642 Business interruption insurance proceeds 404 203 — — 607 Total revenue $ 909,987 $ 148,371 $ 75,643 $ 2,252 $ 1,136,253 For the period ended June 30, 2018 Management, development and other fees $ — $ — $ — $ 1,841 $ 1,841 Rental and non-rental related income (2) 2,218 907 148 — 3,273 Total non-lease revenue (3) 2,218 907 148 1,841 5,114 Lease income (4) 878,200 113,987 63,263 — 1,055,450 Total revenue $ 880,418 $ 114,894 $ 63,411 $ 1,841 $ 1,060,564 __________________________________ (1) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. (2) Amounts include revenue streams related to activities that are not considered components of a lease, including but not limited to, apartment hold fees and application fees, as well as revenue streams not related to leasing activities, including but not limited to, vendor revenue sharing, building advertising, vending and dry cleaning revenue. (3) Represents all revenue accounted for under ASC 2014-09. (4) Amounts include all revenue streams derived from residential and retail rental income and other lease income, which are accounted for under ASU 2016-02. |
Mortgage Notes Payable, Unsec_2
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of company's mortgage notes payable, unsecured notes and Credit Facility excluding mortgage notes secured by communities classified as held for sale | The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of June 30, 2019 and December 31, 2018 , as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, "Real Estate Disposition Activities"). 6/30/2019 12/31/2018 Fixed rate unsecured notes (1) $ 5,850,000 $ 5,400,000 Variable rate unsecured notes (1) 300,000 300,000 Term Loans (1) 250,000 250,000 Fixed rate mortgage notes payable - conventional and tax-exempt (2) 517,039 533,215 Variable rate mortgage notes payable - conventional and tax-exempt (2) 497,850 619,140 Total mortgage notes payable, unsecured notes and Term Loans 7,414,889 7,102,355 Credit Facility — — Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility $ 7,414,889 $ 7,102,355 _____________________________________ (1) Balances at June 30, 2019 and December 31, 2018 exclude $9,346 and $9,879 , respectively, of debt discount, and $35,522 and $34,128 , respectively, of deferred financing costs, as reflected in unsecured notes, net on the accompanying Condensed Consolidated Balance Sheets. (2) Balances at June 30, 2019 and December 31, 2018 exclude $14,530 and $14,590 , respectively, of debt discount, and $3,274 and $3,495 , respectively, of deferred financing costs, as reflected in mortgage notes payable on the accompanying Condensed Consolidated Balance Sheets. |
Scheduled payments and maturities of mortgage notes payable and unsecured notes outstanding | Scheduled payments and maturities of secured notes payable and unsecured notes outstanding at June 30, 2019 are as follows (dollars in thousands): Year Secured notes principal payments Secured notes maturities Unsecured notes and Term Loans maturities Stated interest rate of unsecured notes and Term Loans 2019 1,931 66,285 — N/A 2020 8,782 140,429 400,000 3.625 % 2021 9,304 27,844 250,000 3.950 % 300,000 LIBOR + 0.43% 2022 9,918 — 450,000 2.950 % 100,000 LIBOR + 0.90% 2023 10,739 — 350,000 4.200 % 250,000 2.850 % 2024 11,577 — 300,000 3.500 % 150,000 LIBOR + 0.85% 2025 12,508 — 525,000 3.450 % 300,000 3.500 % 2026 13,545 — 475,000 2.950 % 300,000 2.900 % 2027 13,575 186,505 400,000 3.350 % 2028 20,607 — 450,000 3.200 % Thereafter 200,904 280,436 350,000 3.900 % 300,000 4.150 % 300,000 4.350 % 450,000 3.300 % $ 313,390 $ 701,499 $ 6,400,000 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Summary of changes in equity | The following summarizes the changes in equity for the six months ended June 30, 2019 (dollars in thousands): Common stock Additional paid-in capital Accumulated earnings less dividends Accumulated other comprehensive loss Total AvalonBay stockholder's equity Noncontrolling interests Total equity Balance at December 31, 2018 $ 1,385 $ 10,306,588 $ 350,777 $ (26,144 ) $ 10,632,606 $ — $ 10,632,606 Net income attributable to common stockholders — — 170,366 — 170,366 — 170,366 Loss on cash flow hedges, net — — — (7,231 ) (7,231 ) — (7,231 ) Cash flow hedge losses reclassified to earnings — — — 1,468 1,468 — 1,468 Change in redemption value of redeemable noncontrolling interest — — (224 ) — (224 ) — (224 ) Dividends declared to common stockholders ($1.52 per share) — — (212,166 ) — (212,166 ) — (212,166 ) Issuance of common stock, net of withholdings 9 143,202 (1,892 ) — 141,319 — 141,319 Amortization of deferred compensation — 7,861 — — 7,861 — 7,861 Balance at March 31, 2019 $ 1,394 $ 10,457,651 $ 306,861 $ (31,907 ) $ 10,733,999 $ — $ 10,733,999 Net income attributable to common stockholders — — 168,281 — 168,281 — 168,281 Loss on cash flow hedges, net — — — (2,888 ) (2,888 ) — (2,888 ) Cash flow hedge losses reclassified to earnings — — — 1,611 1,611 — 1,611 Change in redemption value of redeemable noncontrolling interest — — (45 ) — (45 ) — (45 ) Noncontrolling interest contribution — — — — — 530 530 Dividends declared to common stockholders ($1.52 per share) — — (212,549 ) — (212,549 ) — (212,549 ) Issuance of common stock, net of withholdings 3 50,803 — — 50,806 — 50,806 Amortization of deferred compensation — 10,785 — — 10,785 — 10,785 Balance at June 30, 2019 $ 1,397 $ 10,519,239 $ 262,548 $ (33,184 ) $ 10,750,000 $ 530 $ 10,750,530 The following summarizes the changes in equity for the six months ended June 30, 2018 (dollars in thousands): Common Additional Accumulated Accumulated Total Balance at December 31, 2017 $ 1,381 $ 10,235,475 $ 188,609 $ (37,419 ) $ 10,388,046 Net income attributable to common stockholders — — 141,643 — 141,643 Gain on cash flow hedges, net — — — 11,501 11,501 Cash flow hedge losses reclassified to earnings — — — 1,756 1,756 Change in redemption value of redeemable noncontrolling interest — — (63 ) — (63 ) Dividends declared to common stockholders ($1.47 per share) — — (203,166 ) — (203,166 ) Issuance of common stock, net of withholdings 1 (12,286 ) 1,143 — (11,142 ) Amortization of deferred compensation — 6,549 — — 6,549 Balance at March 31, 2018 $ 1,382 $ 10,229,738 $ 128,166 $ (24,162 ) $ 10,335,124 Net income attributable to common stockholders — — 254,662 — 254,662 Cash flow hedge losses reclassified to earnings — — — 1,455 1,455 Change in redemption value of redeemable noncontrolling interest — — (291 ) — (291 ) Dividends declared to common stockholders ($1.47 per share) — — (203,472 ) — (203,472 ) Issuance of common stock, net of withholdings — 627 1 — 628 Amortization of deferred compensation — 10,082 — — 10,082 Balance at June 30, 2018 $ 1,382 $ 10,240,447 $ 179,066 $ (22,707 ) $ 10,398,188 |
Investments in Real Estate En_2
Investments in Real Estate Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Combined summary of the financial position of the entities accounted for using the equity method | The following is a combined summary of the financial position of the entities accounted for using the equity method discussed above as of the dates presented (dollars in thousands): 6/30/2019 12/31/2018 (unaudited) Assets: Real estate, net $ 1,368,946 $ 1,420,039 Other assets 197,107 45,142 Total assets $ 1,566,053 $ 1,465,181 Liabilities and partners' capital: Mortgage notes payable, net and credit facility $ 834,489 $ 837,311 Other liabilities 157,301 15,624 Partners' capital 574,263 612,246 Total liabilities and partners' capital $ 1,566,053 $ 1,465,181 |
Combined summary of the operating results of the entities accounted for using the equity method | The following is a combined summary of the operating results of the entities accounted for using the equity method discussed above for the periods presented (dollars in thousands): For the three months ended For the six months ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 (unaudited) (unaudited) Rental and other income $ 35,958 $ 21,916 $ 71,268 $ 43,717 Operating and other expenses (13,670 ) (8,104 ) (27,638 ) (16,409 ) Interest expense, net (8,540 ) (5,571 ) (17,092 ) (11,189 ) Depreciation expense (18,346 ) (5,894 ) (40,042 ) (11,774 ) Net (loss) income $ (4,598 ) $ 2,347 $ (13,504 ) $ 4,345 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following table details the weighted average remaining lease term and discount rates for the Company’s ground and office leases: Weighted-average remaining lease term - finance leases 27 years Weighted-average remaining lease term - operating leases 54 years Weighted-average discount rate - finance leases 4.63 % Weighted-average discount rate - operating leases 4.45 % |
Lessee, Operating Lease, Liability, Maturity | The following tables details the future minimum lease payments under the Company's current leases and a reconciliation of undiscounted and discounted cash flows for operating and finance leases (dollars in thousands): Payments due by period 2019 2020 2021 2022 2023 Thereafter Operating Lease Obligations $ 6,676 $ 11,787 $ 13,432 $ 13,355 $ 12,810 $ 372,696 Finance Lease Obligations 538 1,077 1,080 1,082 1,084 41,220 $ 7,214 $ 12,864 $ 14,512 $ 14,437 $ 13,894 $ 413,916 Total undiscounted cash flows Total lease liabilities Difference between discounted and undiscounted cash flows Operating Lease Obligations $ 430,756 $ 117,938 $ 312,818 Finance Lease Obligations 46,081 20,225 25,856 $ 476,837 $ 138,163 $ 338,674 |
Finance Lease, Liability, Maturity | The following tables details the future minimum lease payments under the Company's current leases and a reconciliation of undiscounted and discounted cash flows for operating and finance leases (dollars in thousands): Payments due by period 2019 2020 2021 2022 2023 Thereafter Operating Lease Obligations $ 6,676 $ 11,787 $ 13,432 $ 13,355 $ 12,810 $ 372,696 Finance Lease Obligations 538 1,077 1,080 1,082 1,084 41,220 $ 7,214 $ 12,864 $ 14,512 $ 14,437 $ 13,894 $ 413,916 Total undiscounted cash flows Total lease liabilities Difference between discounted and undiscounted cash flows Operating Lease Obligations $ 430,756 $ 117,938 $ 312,818 Finance Lease Obligations 46,081 20,225 25,856 $ 476,837 $ 138,163 $ 338,674 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of reconciliation of NOI to net income | A reconciliation of NOI to net income for the three and six months ended June 30, 2019 and 2018 is as follows (dollars in thousands): For the three months ended For the six months ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Net income $ 168,305 $ 254,543 $ 338,723 $ 396,133 Indirect operating expenses, net of corporate income 23,018 19,677 42,740 38,636 Expensed transaction, development and other pursuit costs, net of recoveries 2,711 1,047 3,806 1,847 Interest expense, net 50,010 56,585 97,902 111,698 Loss on extinguishment of debt, net 229 642 509 1,039 General and administrative expense 18,965 15,209 32,671 29,640 Equity in (income) loss of unconsolidated real estate entities (197 ) (789 ) 863 (2,529 ) Depreciation expense 162,693 156,685 324,749 315,743 Income tax expense (refund) — 58 (6 ) 58 Casualty and impairment gain, net — — — (58 ) Gain on sale of communities (20,530 ) (105,201 ) (35,365 ) (105,201 ) Gain on other real estate transactions, net (34 ) (370 ) (300 ) (323 ) Net operating income from real estate assets sold or held for sale (1,495 ) (19,680 ) (4,077 ) (40,377 ) Net operating income $ 403,675 $ 378,406 $ 802,215 $ 746,306 |
Schedule of net operating income from real estate assets sold or held for sale, not classified as discontinued operations | The following is a summary of NOI from real estate assets sold or held for sale for the periods presented (dollars in thousands): For the three months ended For the six months ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Rental income from real estate assets sold or held for sale $ 2,591 $ 30,024 $ 7,193 $ 61,857 Operating expenses from real estate assets sold or held for sale (1,096 ) (10,344 ) (3,116 ) (21,480 ) Net operating income from real estate assets sold or held for sale $ 1,495 $ 19,680 $ 4,077 $ 40,377 |
Schedule of details of segment information | For the three months ended For the six months ended Total NOI Total NOI Gross real estate (1) For the period ended June 30, 2019 Established New England $ 63,819 $ 41,907 $ 127,092 $ 83,715 $ 2,118,237 Metro NY/NJ 103,073 73,212 204,276 145,055 3,531,694 Mid-Atlantic 73,094 51,073 145,103 102,125 2,674,020 Pacific Northwest 28,224 20,605 56,026 40,815 987,121 Northern California 88,301 67,384 175,661 135,622 2,776,718 Southern California 101,288 72,593 201,829 145,288 3,589,188 Total Established 457,799 326,774 909,987 652,620 15,676,978 Other Stabilized 75,696 50,813 148,371 100,024 3,327,804 Development / Redevelopment 40,063 26,088 75,643 49,571 3,719,999 Land Held for Development N/A N/A N/A N/A 18,606 Non-allocated (2) 1,114 N/A 2,252 N/A 98,492 Total $ 574,672 $ 403,675 $ 1,136,253 $ 802,215 $ 22,841,879 For the period ended June 30, 2018 Established New England $ 62,110 $ 40,750 $ 123,318 $ 80,441 $ 2,109,273 Metro NY/NJ 99,745 70,412 197,774 139,429 3,518,123 Mid-Atlantic 71,099 49,917 140,868 98,772 2,662,775 Pacific Northwest 26,894 19,142 53,381 37,766 984,029 Northern California 85,559 66,133 169,983 130,946 2,764,856 Southern California 98,179 71,482 195,094 141,082 3,561,270 Total Established 443,586 317,836 880,418 628,436 15,600,326 Other Stabilized 59,134 38,776 114,894 75,000 2,764,061 Development / Redevelopment 31,965 21,794 63,411 42,870 2,618,434 Land Held for Development N/A N/A N/A N/A 130,802 Non-allocated (2) 954 N/A 1,841 N/A 79,703 Total $ 535,639 $ 378,406 $ 1,060,564 $ 746,306 $ 21,193,326 __________________________________ (1) Does not include gross real estate assets held for sale of $77,030 as of June 30, 2019 and gross real estate either sold or classified as held for sale subsequent to June 30, 2018 of $1,153,352 . (2) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of information with respect to stock options granted | Information with respect to stock options granted under the Company's Second Amended and Restated 2009 Equity Incentive Plan (the "2009 Plan") for the six months ended June 30, 2019 , is as follows: 2009 Plan shares Weighted average exercise price per share Options Outstanding, December 31, 2018 124,212 $ 128.84 Exercised (69,686 ) 128.50 Granted — — Forfeited — — Options Outstanding, June 30, 2019 54,526 $ 129.28 Options Exercisable, June 30, 2019 49,861 $ 126.30 |
Schedule of nonvested performance awards granted | Information with respect to performance awards granted is as follows: Performance awards Weighted average grant date fair value per award Outstanding at December 31, 2018 267,129 $ 157.21 Granted (1) 79,840 200.69 Change in awards based on performance (2) (16,760 ) 142.03 Converted to restricted stock or options (73,072 ) 142.03 Forfeited (154 ) 161.96 Outstanding at June 30, 2019 256,983 $ 176.03 __________________________________ (1) The amount of restricted stock that ultimately may be earned is based on the total shareholder return metrics related to the Company's common stock for 47,091 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 32,749 performance awards. (2) Represents the change in the number of performance awards earned based on actual performance achievement for the performance period. |
Summary of valuation options | The Company used a Monte Carlo model to assess the compensation cost associated with the portion of the performance awards granted in 2019 for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows: 2019 Dividend yield 3.1% Estimated volatility over the life of the plan (1) 13.9% - 18.8% Risk free rate 2.46% - 2.57% Estimated performance award value based on total shareholder return measure $204.15 __________________________________ (1) Estimated volatility over the life of the plan is using 50% historical volatility and 50% implied volatility. |
Schedule of restricted stock granted | Information with respect to restricted stock granted is as follows: Restricted stock shares Restricted stock shares weighted average grant date fair value per share Restricted stock shares converted from performance awards Outstanding at December 31, 2018 160,411 $ 166.33 209,238 Granted - restricted stock shares 77,287 195.96 73,072 Vested - restricted stock shares (77,244 ) 166.52 (110,366 ) Forfeited (1,438 ) 174.19 — Outstanding at June 30, 2019 159,016 $ 180.57 171,944 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of summary of consolidated Hedging Derivatives, excluding derivatives executed to hedge debt on communities classified as held for sale | The following table summarizes the consolidated derivative positions at June 30, 2019 (dollars in thousands): Non-designated Hedges Cash Flow Interest Rate Swaps Notional balance $ 446,177 $ 250,000 Weighted average interest rate (1) 3.5 % N/A Weighted average swapped/capped interest rate 6.5 % 2.2 % Earliest maturity date Jan 2021 Oct 2020 Latest maturity date Nov 2021 Oct 2020 ____________________________________ (1) Represents the weighted average interest rate on the hedged debt. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the deferred losses reclassified from accumulated other comprehensive loss as a component of interest expense, net (dollars in thousands): For the three months ended For the six months ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Cash flow hedge losses reclassified to earnings $ 1,611 $ 1,455 $ 3,079 $ 3,213 |
Schedule of summary of classification between the three levels of the fair value hierarchy of the Company's financial instruments measured at fair value on a recurring basis | The following tables summarize the classification between the three levels of the fair value hierarchy of the Company's financial instruments measured/disclosed at fair value on a recurring basis (dollars in thousands): 6/30/2019 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Cash Flow Hedges Interest Rate Swaps - Assets $ 18 $ — $ 18 $ — Interest Rate Swaps - Liabilities (4,198 ) — (4,198 ) — Puts (341 ) — — (341 ) DownREIT units (1,524 ) (1,524 ) — — Indebtedness Fixed rate unsecured notes (6,097,629 ) (6,097,629 ) — — Secured notes and variable rate unsecured indebtedness (1,417,624 ) — (1,417,624 ) — Total $ (7,521,298 ) $ (6,099,153 ) $ (1,421,804 ) $ (341 ) 12/31/2018 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Non-Designated Hedges Interest Rate Caps $ 2 $ — $ 2 $ — Cash Flow Hedges Interest Rate Swaps - Liabilities (6,366 ) — (6,366 ) — Puts (465 ) — — (465 ) DownREIT units (1,305 ) (1,305 ) — — Indebtedness Fixed rate unsecured notes (5,268,277 ) (5,268,277 ) — — Secured notes and variable rate unsecured indebtedness (1,505,876 ) — (1,505,876 ) — Total $ (6,782,287 ) $ (5,269,582 ) $ (1,512,240 ) $ (465 ) |
Organization, Basis of Presen_4
Organization, Basis of Presentation and Significant Accounting Policies (Details) $ in Thousands | Jun. 30, 2019USD ($)statecommunityhome | Jan. 01, 2019USD ($) |
Accounting Policies [Abstract] | ||
Number of operating apartment communities | community | 273 | |
Number of apartment homes included in operating apartment communities owned | home | 79,161 | |
Number of states where operating apartment communities owned are located | state | 12 | |
Number of Communities with Apartments under Reconstruction | community | 7 | |
Number of Apartment Homes under Reconstruction | home | 3,026 | |
Number of owned communities under construction | community | 21 | |
Expected number of apartment homes under construction | home | 7,023 | |
Communities under development rights | community | 28 | |
Estimated number of apartment homes in communities to be developed | home | 9,004 | |
Real Estate Properties [Line Items] | ||
Operating lease assets | $ | $ 100,377 | |
Operating lease obligation | $ | $ 117,938 | |
Accounting Standards Update 2016-02 | ||
Real Estate Properties [Line Items] | ||
Operating lease assets | $ | $ 122,276 | |
Operating lease obligation | $ | $ 122,276 |
Organization, Basis of Presen_5
Organization, Basis of Presentation and Significant Accounting Policies (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic and diluted shares outstanding | ||||||
Weighted average common shares - basic (in shares) | 139,113,390 | 137,840,045 | 138,724,479 | 137,802,461 | ||
Weighted average DownREIT units outstanding (in shares) | 7,500 | 7,500 | 7,500 | 7,500 | ||
Effect of dilutive securities (in shares) | 497,341 | 367,465 | 495,397 | 374,334 | ||
Weighted average common shares - diluted (in shares) | 139,618,231 | 138,215,010 | 139,227,376 | 138,184,295 | ||
Calculation of Earnings per Share - basic | ||||||
Net income attributable to common stockholders | $ 168,281 | $ 170,366 | $ 254,662 | $ 141,643 | $ 338,647 | $ 396,305 |
Net income allocated to unvested restricted shares | (435) | (727) | (935) | (1,167) | ||
Net income attributable to common stockholders, adjusted | $ 167,846 | $ 253,935 | $ 337,712 | $ 395,138 | ||
Weighted average common shares - basic (in shares) | 139,113,390 | 137,840,045 | 138,724,479 | 137,802,461 | ||
Earnings per common share - basic (in dollars per share) | $ 1.21 | $ 1.84 | $ 2.43 | $ 2.87 | ||
Calculation of Earnings per Share - diluted | ||||||
Net income attributable to common stockholders | $ 168,281 | $ 170,366 | $ 254,662 | $ 141,643 | $ 338,647 | $ 396,305 |
Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships | 12 | 11 | 23 | 22 | ||
Adjusted net income attributable to common stockholders | $ 168,293 | $ 254,673 | $ 338,670 | $ 396,327 | ||
Weighted average common shares - diluted (in shares) | 139,618,231 | 138,215,010 | 139,227,376 | 138,184,295 | ||
Earnings per common share - diluted (in dollars per share) | $ 1.21 | $ 1.84 | $ 2.43 | $ 2.87 |
Organization, Basis of Presen_6
Organization, Basis of Presentation and Significant Accounting Policies (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | $ 1,114 | $ 954 | $ 2,252 | $ 1,841 |
Operating Lease, Lease Income | 576,149 | 568,285 | 1,141,194 | 1,128,191 |
Total revenue | 577,263 | 569,239 | 1,143,446 | 1,130,032 |
Operating Segments | Established Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 457,799 | 443,586 | 909,987 | 880,418 |
Operating Segments | Other Stabilized Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 75,696 | 59,134 | 148,371 | 114,894 |
Non-allocated | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,114 | 954 | 2,252 | 1,841 |
Continuing Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 3,508 | 2,647 | 7,004 | 5,114 |
Operating Lease, Lease Income | 570,729 | 532,992 | 1,128,642 | 1,055,450 |
Gain on Business Interruption Insurance Recovery | 435 | 607 | ||
Total revenue | 574,672 | 535,639 | 1,136,253 | 1,060,564 |
Continuing Operations | Management, development and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 1,114 | 954 | 2,252 | 1,841 |
Continuing Operations | Rental and non-rental related income | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 2,394 | 1,693 | 4,752 | 3,273 |
Continuing Operations | Operating Segments | Established Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 1,817 | 1,292 | 3,373 | 2,218 |
Operating Lease, Lease Income | 455,732 | 442,294 | 906,210 | 878,200 |
Gain on Business Interruption Insurance Recovery | 250 | 404 | ||
Total revenue | 457,799 | 443,586 | 909,987 | 880,418 |
Continuing Operations | Operating Segments | Other Stabilized Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 385 | 316 | 1,047 | 907 |
Operating Lease, Lease Income | 75,126 | 58,818 | 147,121 | 113,987 |
Gain on Business Interruption Insurance Recovery | 185 | 203 | ||
Total revenue | 75,696 | 59,134 | 148,371 | 114,894 |
Continuing Operations | Operating Segments | Development/ Redevelopment Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 192 | 85 | 332 | 148 |
Operating Lease, Lease Income | 39,871 | 31,880 | 75,311 | 63,263 |
Gain on Business Interruption Insurance Recovery | 0 | 0 | ||
Total revenue | 40,063 | 31,965 | 75,643 | 63,411 |
Continuing Operations | Operating Segments | Management, development and other fees | Established Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 0 | 0 | 0 | 0 |
Continuing Operations | Operating Segments | Management, development and other fees | Other Stabilized Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 0 | 0 | 0 | 0 |
Continuing Operations | Operating Segments | Management, development and other fees | Development/ Redevelopment Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 0 | 0 | 0 | 0 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Established Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 1,817 | 1,292 | 3,373 | 2,218 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Other Stabilized Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 385 | 316 | 1,047 | 907 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Development/ Redevelopment Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 192 | 85 | 332 | 148 |
Continuing Operations | Non-allocated | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 1,114 | 954 | 2,252 | 1,841 |
Operating Lease, Lease Income | 0 | 0 | 0 | 0 |
Gain on Business Interruption Insurance Recovery | 0 | 0 | ||
Total revenue | 1,114 | 954 | 2,252 | 1,841 |
Continuing Operations | Non-allocated | Management, development and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 1,114 | 954 | 2,252 | 1,841 |
Continuing Operations | Non-allocated | Rental and non-rental related income | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Capitalized (Details)
Interest Capitalized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest Capitalized | ||||
Capitalized interest during the development and redevelopment of real estate assets | $ 17,127 | $ 14,567 | $ 34,716 | $ 27,731 |
Mortgage Notes Payable, Unsec_3
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Notes Payable, Unsecured Notes and Credit Facility | ||
Total mortgage notes payable, unsecured notes and Term Loans | $ 7,414,889,000 | $ 7,102,355,000 |
Credit Facility | 0 | 0 |
Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility | 7,414,889,000 | 7,102,355,000 |
Unsecured notes | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Fixed rate notes | 5,850,000,000 | 5,400,000,000 |
Variable rate notes | 300,000,000 | 300,000,000 |
Total mortgage notes payable, unsecured notes and Term Loans | 6,400,000,000 | |
Amount of debt discount | 9,346,000 | 9,879,000 |
Amount of deferred financing costs, net | 35,522,000 | 34,128,000 |
Term Loans | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Variable rate notes | 250,000,000 | 250,000,000 |
Secured notes | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Fixed rate notes | 517,039,000 | 533,215,000 |
Variable rate notes | 497,850,000 | 619,140,000 |
Total mortgage notes payable, unsecured notes and Term Loans | 701,499,000 | |
Amount of debt discount | 14,530,000 | 14,590,000 |
Amount of deferred financing costs, net | 3,274,000 | 3,495,000 |
Variable Rate Unsecured Term Loan $250 Million [Member] | Unsecured notes | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Debt Instrument, Face Amount | 250,000,000 | |
Line of Credit [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Credit Facility | $ 0 | $ 0 |
Mortgage Notes Payable, Unsec_4
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details 2) - USD ($) | 1 Months Ended | 6 Months Ended | |||
May 31, 2019 | Apr. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Notes Payable, Unsecured Notes and Credit Facility | |||||
Cash in escrow | $ 86,468,000 | $ 126,205,000 | $ 248,332,000 | ||
Net carrying value of apartment communities and improved land parcels securing debt | 1,667,725,000 | ||||
Unsecured Notes 3.30 Percent [Domain] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt Instrument, Face Amount | 450,000,000 | ||||
Proceeds from Issuance of Debt | $ 446,877,000 | ||||
Variable Rate Unsecured Term Loan $250 Million [Member] | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt Instrument, Face Amount | 250,000,000 | ||||
Variable Rate Unsecured Term Loan $100 Million | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt Instrument, Face Amount | $ 100,000,000 | ||||
Variable Rate Unsecured Term Loan $100 Million | LIBOR | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument, basis spread on variable rate (as a percent) | 0.90% | ||||
Variable Rate Unsecured Term Loan $150 Million | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt Instrument, Face Amount | $ 150,000,000 | ||||
Variable Rate Unsecured Term Loan $150 Million | LIBOR | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument, basis spread on variable rate (as a percent) | 0.85% | ||||
Notes Payable Maturities 2019, Fixed Rate [Member] | Secured Debt [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Repayments of Secured Debt | $ 13,363,000 | ||||
Notes Payable Maturities 2019, Variable Rate [Member] | Secured Debt [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Repayments of Secured Debt | $ 33,854,000 | ||||
Unsecured Notes 3.30 Percent [Domain] | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.30% | ||||
Current interest rate (as a percent) | 3.66% | ||||
Line of Credit [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Available borrowing capacity | $ 1,750,000,000 | 1,500,000,000 | |||
Percent of Credit Facility Available to Competitive Bid Option | 65.00% | ||||
Annual facility fee, percentage | 0.125% | ||||
Annual facility fee | $ 2,188,000 | ||||
Outstanding balance of letters of credit | $ 35,461,000 | $ 39,810,000 | |||
Line of Credit [Member] | LIBOR | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument, basis spread on variable rate (as a percent) | 0.775% | ||||
Current interest rate (as a percent) | 3.15% | ||||
Other Letter of Credit [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Outstanding balance of letters of credit | $ 100,000 | ||||
Fixed Rate Mortgage Notes Payable [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Weighted average interest rate, debt (as a percent) | 3.80% | 3.80% | |||
Variable Rate Mortgage Notes Payable Unsecured Term Loan and Credit Facility [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Weighted average interest rate, debt (as a percent) | 3.50% | 3.40% | |||
Minimum | Variable Rate Unsecured Term Loan $150 Million | LIBOR | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument, basis spread on variable rate (as a percent) | 0.85% | ||||
Minimum | Line of Credit [Member] | LIBOR | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument, basis spread on variable rate (as a percent) | 0.70% | ||||
Maximum | Variable Rate Unsecured Term Loan $150 Million | LIBOR | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument, basis spread on variable rate (as a percent) | 1.50% | ||||
Maximum | Line of Credit [Member] | LIBOR | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument, basis spread on variable rate (as a percent) | 1.45% | ||||
Eaves Mission Viejo [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Cash in escrow | $ 3,706,000 | ||||
Eaves Mission Viejo [Member] | Notes Payable Maturities 2025 | Secured Debt [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Repayments of Secured Debt | 7,635,000 | ||||
AVA Nob Hill [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Cash in escrow | 10,584,000 | ||||
AVA Nob Hill [Member] | Notes Payable Maturities 2025 | Secured Debt [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Repayments of Secured Debt | 20,800,000 | ||||
Avalon Campbell [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Cash in escrow | 22,622,000 | ||||
Avalon Campbell [Member] | Notes Payable Maturities 2025 | Secured Debt [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Repayments of Secured Debt | 38,800,000 | ||||
Eaves Pacifica [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Cash in escrow | $ 10,263,000 | ||||
Eaves Pacifica [Member] | Notes Payable Maturities 2025 | Secured Debt [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Repayments of Secured Debt | $ 17,600,000 |
Mortgage Notes Payable, Unsec_5
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details 3) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | |
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 7,414,889 | $ 7,102,355 | |
Notes Payable Maturities 2019 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Stated interest rate of unsecured notes (as a percent) | 2.99% | ||
Secured notes | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 313,390 | ||
Mortgage notes payable and unsecured notes | 701,499 | ||
Secured notes | Notes Payable Maturities 2019 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 1,931 | ||
Mortgage notes payable and unsecured notes | 66,285 | ||
Secured notes | Notes Payable Maturities 2020 [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 8,782 | ||
Mortgage notes payable and unsecured notes | 140,429 | ||
Secured notes | Notes Payable Maturities 2021 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 9,304 | ||
Mortgage notes payable and unsecured notes | 27,844 | ||
Secured notes | Notes payable maturing in 2022 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 9,918 | ||
Secured notes | Notes Payable Maturities 2023 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 10,739 | ||
Secured notes | Notes Payable Maturities 2024 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 11,577 | ||
Secured notes | Notes Payable Maturities 2025 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 12,508 | ||
Secured notes | Notes Payable Maturities 2026 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 13,545 | ||
Secured notes | Notes Payable Maturities 2027 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 13,575 | ||
Mortgage notes payable and unsecured notes | 186,505 | ||
Secured notes | Notes Payable Maturities 2028 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 20,607 | ||
Secured notes | Notes Payable Maturities Thereafter | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 200,904 | ||
Mortgage notes payable and unsecured notes | 280,436 | ||
Unsecured notes | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | 6,400,000 | ||
Unsecured notes | Notes Payable 3.625 Percent Maturities 2020 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 400,000 | ||
Stated interest rate of unsecured notes (as a percent) | 3.625% | ||
Unsecured notes | Notes Payable Maturities 2021 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 250,000 | ||
Stated interest rate of unsecured notes (as a percent) | 3.95% | ||
Unsecured notes | Variable Rate Unsecured Term Loan $300 Million | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 300,000 | ||
Unsecured notes | Variable Rate Unsecured Term Loan $300 Million | LIBOR | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Debt instrument, basis spread on variable rate (as a percent) | 0.43% | ||
Unsecured notes | Notes payable maturing in 2022 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 450,000 | ||
Stated interest rate of unsecured notes (as a percent) | 2.95% | ||
Unsecured notes | Variable Rate Unsecured Term Loan $100 Million | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 100,000 | ||
Unsecured notes | Variable Rate Unsecured Term Loan $100 Million | LIBOR | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Debt instrument, basis spread on variable rate (as a percent) | 0.90% | ||
Unsecured notes | Notes payable 4.200 Maturities 2023 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 350,000 | ||
Stated interest rate of unsecured notes (as a percent) | 4.20% | ||
Unsecured notes | Notes Payable 2.850 Maturities 2023 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 250,000 | ||
Stated interest rate of unsecured notes (as a percent) | 2.85% | ||
Unsecured notes | Notes Payable Maturities 2024 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 300,000 | ||
Stated interest rate of unsecured notes (as a percent) | 3.50% | ||
Unsecured notes | Variable Rate Unsecured Term Loan $150 Million | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 150,000 | ||
Unsecured notes | Variable Rate Unsecured Term Loan $150 Million | LIBOR | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Debt instrument, basis spread on variable rate (as a percent) | 0.85% | ||
Unsecured notes | Notes Payable 3.450 Maturities 2025 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 525,000 | ||
Stated interest rate of unsecured notes (as a percent) | 3.45% | ||
Unsecured notes | Notes Payable 3.500 Maturities 2025 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 300,000 | ||
Stated interest rate of unsecured notes (as a percent) | 3.50% | ||
Unsecured notes | Notes Payable Maturities 2026 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 475,000 | ||
Unsecured notes | Notes Payable 2.950 Maturities 2026 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Stated interest rate of unsecured notes (as a percent) | 2.95% | ||
Unsecured notes | Notes Payable 2.900 Maturities 2026 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 300,000 | ||
Stated interest rate of unsecured notes (as a percent) | 2.90% | ||
Unsecured notes | Notes Payable Maturities 2027 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 400,000 | ||
Stated interest rate of unsecured notes (as a percent) | 3.35% | ||
Unsecured notes | Notes Payable Maturities 2028 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 450,000 | ||
Stated interest rate of unsecured notes (as a percent) | 3.20% | ||
Unsecured notes | Notes Payable Maturities 2046 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 350,000 | ||
Stated interest rate of unsecured notes (as a percent) | 3.90% | ||
Unsecured notes | Notes Payable Maturities 2047 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 300,000 | ||
Stated interest rate of unsecured notes (as a percent) | 4.15% | ||
Unsecured notes | Notes Payable Maturities 2048 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 300,000 | ||
Stated interest rate of unsecured notes (as a percent) | 4.35% | ||
Unsecured notes | Notes Payable Maturities 2029 [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 450,000 | ||
Stated interest rate of unsecured notes (as a percent) | 3.30% |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Class of Stock [Line Items] | ||||||
Issuance of common stock, net | $ 206,193,000 | $ 833,000 | ||||
Changes in equity | ||||||
Beginning Balance | $ 10,733,999,000 | $ 10,632,606,000 | $ 10,335,124,000 | $ 10,388,046,000 | 10,632,606,000 | 10,388,046,000 |
Net income attributable to common stockholders | 168,281,000 | 170,366,000 | 254,662,000 | 141,643,000 | 338,647,000 | 396,305,000 |
(Loss) gain on cash flow hedges | (2,888,000) | (7,231,000) | 0 | 11,501,000 | (10,119,000) | 11,499,000 |
Cash flow hedge losses reclassified to earnings | 1,611,000 | 1,468,000 | 1,455,000 | 1,756,000 | 3,079,000 | 3,213,000 |
Change in redemption value of redeemable noncontrolling interest | (45,000) | (224,000) | (291,000) | (63,000) | ||
Noncontrolling interest contribution | 530,000 | |||||
Dividends declared to common stockholders ($1.52 per share) | (212,549,000) | (212,166,000) | (203,472,000) | (203,166,000) | ||
Issuance of common stock, net of withholdings | 50,806,000 | 141,319,000 | 628,000 | (11,142,000) | ||
Amortization of deferred compensation | 10,785,000 | 7,861,000 | 10,082,000 | 6,549,000 | ||
Ending Balance | $ 10,750,530,000 | $ 10,733,999,000 | $ 10,398,188,000 | $ 10,335,124,000 | 10,750,530,000 | 10,398,188,000 |
Dividends declared to common stockholders (in dollars per share) | $ 1.52 | $ 1.52 | $ 1.47 | $ 1.47 | ||
Common stock | ||||||
Changes in equity | ||||||
Beginning Balance | $ 1,394,000 | $ 1,385,000 | $ 1,382,000 | $ 1,381,000 | 1,385,000 | 1,381,000 |
Issuance of common stock, net of withholdings | 3,000 | 9,000 | 0 | 1,000 | ||
Ending Balance | 1,397,000 | 1,394,000 | 1,382,000 | 1,382,000 | 1,397,000 | 1,382,000 |
Additional paid-in capital | ||||||
Changes in equity | ||||||
Beginning Balance | 10,457,651,000 | 10,306,588,000 | 10,229,738,000 | 10,235,475,000 | 10,306,588,000 | 10,235,475,000 |
Issuance of common stock, net of withholdings | 50,803,000 | 143,202,000 | 627,000 | (12,286,000) | ||
Amortization of deferred compensation | 10,785,000 | 7,861,000 | 10,082,000 | 6,549,000 | ||
Ending Balance | 10,519,239,000 | 10,457,651,000 | 10,240,447,000 | 10,229,738,000 | 10,519,239,000 | 10,240,447,000 |
Accumulated earnings less dividends | ||||||
Changes in equity | ||||||
Beginning Balance | 306,861,000 | 350,777,000 | 128,166,000 | 188,609,000 | 350,777,000 | 188,609,000 |
Net income attributable to common stockholders | 168,281,000 | 170,366,000 | 254,662,000 | 141,643,000 | ||
Change in redemption value of redeemable noncontrolling interest | (45,000) | (224,000) | (291,000) | (63,000) | (269,000) | 354,000 |
Dividends declared to common stockholders ($1.52 per share) | (212,549,000) | (212,166,000) | 203,472,000 | (203,166,000) | ||
Issuance of common stock, net of withholdings | (1,892,000) | 1,000 | 1,143,000 | |||
Ending Balance | 262,548,000 | 306,861,000 | 179,066,000 | 128,166,000 | 262,548,000 | 179,066,000 |
Accumulated other comprehensive loss | ||||||
Changes in equity | ||||||
Beginning Balance | (31,907,000) | (26,144,000) | (24,162,000) | (37,419,000) | (26,144,000) | (37,419,000) |
(Loss) gain on cash flow hedges | (2,888,000) | (7,231,000) | 11,501,000 | |||
Cash flow hedge losses reclassified to earnings | 1,611,000 | 1,468,000 | (1,455,000) | 1,756,000 | ||
Ending Balance | (33,184,000) | (31,907,000) | $ (22,707,000) | $ (24,162,000) | (33,184,000) | $ (22,707,000) |
Parent [Member] | ||||||
Changes in equity | ||||||
Beginning Balance | 10,733,999,000 | 10,632,606,000 | 10,632,606,000 | |||
Net income attributable to common stockholders | 168,281,000 | 170,366,000 | ||||
(Loss) gain on cash flow hedges | (2,888,000) | (7,231,000) | ||||
Cash flow hedge losses reclassified to earnings | 1,611,000 | 1,468,000 | ||||
Change in redemption value of redeemable noncontrolling interest | (45,000) | (224,000) | ||||
Dividends declared to common stockholders ($1.52 per share) | (212,549,000) | (212,166,000) | ||||
Issuance of common stock, net of withholdings | 50,806,000 | 141,319,000 | ||||
Amortization of deferred compensation | 10,785,000 | 7,861,000 | ||||
Ending Balance | 10,750,000,000 | 10,733,999,000 | 10,750,000,000 | |||
Noncontrolling Interest [Member] | ||||||
Changes in equity | ||||||
Beginning Balance | 0 | 0 | 0 | |||
Noncontrolling interest contribution | 530,000 | |||||
Ending Balance | 530,000 | 0 | $ 530,000 | |||
Continuous Equity Program CEP IV | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock, net | $ 0 | $ 147,450,000 |
Equity (Details 2)
Equity (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 280,000,000 | 280,000,000 | 280,000,000 | ||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 69,686 | ||||
Common stock issued through the dividend reinvestment plan (in shares) | 1,092 | 1,135 | |||
Number of shares of stock grants withheld (in shares) | 75,195 | 67,854 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 7,156 | ||||
Stock issued during period, shares, share-based compensation, forfeited (in shares) | 1,438 | ||||
Issuance of common stock, net | $ 206,193,000 | $ 833,000 | |||
Continuous Equity Programs CEP IV and CEP V [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 994,634 | ||||
Continuous Equity Program CEP IV | |||||
Class of Stock [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 755,054 | ||||
Maximum value of shares of common stock that can be sold (in dollars) | $ 1,000,000,000 | ||||
Issuance of common stock, net | $ 0 | $ 147,450,000 | |||
Continuous Equity Program CEP V [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 239,580 | ||||
Maximum value of shares of common stock that can be sold (in dollars) | 1,000,000,000 | $ 1,000,000,000 | |||
Shares Issued, Weighted Average Price Per Share | $ 208.70 | ||||
Issuance of common stock, net | $ 49,250,000 | ||||
Common stock value, remaining to be authorized under continuous equity program | $ 950,000,000 | $ 950,000,000 | |||
Maximum | Continuous Equity Program CEP IV | |||||
Class of Stock [Line Items] | |||||
Percentage of compensation received by sales agent | 2.00% | ||||
Maximum | Continuous Equity Program CEP V [Member] | |||||
Class of Stock [Line Items] | |||||
Percentage of compensation received by sales agent | 1.50% | ||||
Restricted Stock and Restricted Stock Converted From Performance Shares | |||||
Class of Stock [Line Items] | |||||
Equity instruments granted (in shares) | 150,359 | 186,382 |
Investments in Real Estate En_3
Investments in Real Estate Entities - Narrative of Investment in Real Estate Entities (Details) | 6 Months Ended | ||
Jun. 30, 2019USD ($)communityhomeentity | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Equity method investment | |||
Equity method investment, difference between carrying amount and underlying equity | $ 30,544,000 | $ 31,188,000 | |
Number of Communities Acquired | community | 2 | ||
Payments to Acquire Other Real Estate | $ 152,260,000 | $ 0 | |
Unconsolidated real estate entities | |||
Equity method investment | |||
Number of unconsolidated real estate entities | entity | 6 | ||
Avalon Brooklyn Bay | |||
Equity method investment | |||
Variable interest entity, qualitative or quantitative information, ownership percentage | 70.00% | ||
Variable interest entity, ownership interest by partner | 30.00% | ||
Due from related parties | $ 12,272,000 | $ 12,819,000 | |
Avalon Brooklyn Bay Rental Apartments [Member] | |||
Equity method investment | |||
Variable interest entity, qualitative or quantitative information, ownership percentage | 100.00% | ||
Avalon Brooklyn Bay Condominiums [Member] | |||
Equity method investment | |||
Variable interest entity, ownership interest by partner | 100.00% | ||
Minimum | Unconsolidated real estate entities | |||
Equity method investment | |||
Equity Method Investment, Ownership Percentage | 20.00% | ||
Maximum | Unconsolidated real estate entities | |||
Equity method investment | |||
Equity Method Investment, Ownership Percentage | 55.00% | ||
Avalon Southlands [Member] | |||
Equity method investment | |||
Number of Apartment Homes Acquired | home | 338 | ||
Payments to Acquire Other Real Estate | $ 91,250,000 | ||
Avalon Cerritos [Member] | |||
Equity method investment | |||
Number of Apartment Homes Acquired | home | 132 | ||
Payments to Acquire Other Real Estate | $ 60,500,000 |
Investments in Real Estate En_4
Investments in Real Estate Entities - Financial Position and Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Assets: | |||||
Real estate, net | $ 1,368,946 | $ 1,368,946 | $ 1,420,039 | ||
Other assets | 197,107 | 197,107 | 45,142 | ||
Total assets | 1,566,053 | 1,566,053 | 1,465,181 | ||
Liabilities and partners' capital: | |||||
Mortgage notes payable and credit facility | 834,489 | 834,489 | 837,311 | ||
Other liabilities | 157,301 | 157,301 | 15,624 | ||
Partners' capital | 574,263 | 574,263 | 612,246 | ||
Total liabilities and partners' capital | 1,566,053 | 1,566,053 | $ 1,465,181 | ||
Combined summary of the operating results of the accounted for using the equity method | |||||
Rental and other income | 35,958 | $ 21,916 | 71,268 | $ 43,717 | |
Operating and other expenses | (13,670) | (8,104) | (27,638) | (16,409) | |
Interest expense, net | (8,540) | (5,571) | (17,092) | (11,189) | |
Depreciation expense | (18,346) | (5,894) | (40,042) | (11,774) | |
Net income | $ (4,598) | $ 2,347 | $ (13,504) | $ 4,345 |
Investments in Real Estate En_5
Investments in Real Estate Entities - Expensed Acquisition, Development and Other Pursuit Costs and Impairment of Long-Lived Assets & Casualty Gains and Losses (Details) ft² in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)home | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)homeft² | Jun. 30, 2018USD ($) | |
Equity method investment | ||||
Expensed transaction, development and other pursuit costs, net of recoveries | $ 2,711,000 | $ 1,047,000 | $ 3,806,000 | $ 1,847,000 |
Impairment of investment in unconsolidated entities | 0 | 0 | 0 | 0 |
Casualty and impairment (gain) loss, net | 0 | 0 | 0 | (58,000) |
15 West 61st Street [Member] | ||||
Equity method investment | ||||
Expensed transaction, development and other pursuit costs, net of recoveries | 945,000 | 158,000 | 1,418,000 | 158,000 |
Land Parcel [Member] | ||||
Equity method investment | ||||
Casualty and impairment (gain) loss, net | 0 | 0 | 0 | 0 |
Abandoned Development Pursuits [Member] | ||||
Equity method investment | ||||
Expensed transaction, development and other pursuit costs, net of recoveries | $ 1,766,000 | $ 889,000 | $ 2,388,000 | $ 1,689,000 |
Development Communities [Member] | 15 West 61st Street [Member] | ||||
Equity method investment | ||||
Number of Residential Units in Development | home | 172 | 172 | ||
Retail Square Feet Development | ft² | 67 | |||
Real Estate Investments, Projected Total Capitalized Cost | $ 624,000,000 | $ 624,000,000 |
Real Estate Disposition Activ_2
Real Estate Disposition Activities (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)community | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)communityhomeland_parcel | Jun. 30, 2018USD ($) | |
Summary of income from discontinued operations | ||||
Gain on sale of communities | $ 20,530,000 | $ 105,201,000 | $ 35,365,000 | $ 105,201,000 |
Number of Land Parcels Sold | land_parcel | 2 | |||
Number of Communities Held for Sale | community | 1 | 1 | ||
Oakwood Arlington [Member] | ||||
Summary of income from discontinued operations | ||||
Number of Apartment Homes Sold | home | 184 | |||
Proceeds from Sale of Real Estate | $ 70,000,000 | |||
Gain on sale of communities | 16,382,000 | |||
Land Parcel [Member] | ||||
Summary of income from discontinued operations | ||||
Proceeds from Sale of Real Estate | 3,680,000 | |||
Gain on sale of communities | $ 214,000 | |||
Archstone Toscano [Member] | ||||
Summary of income from discontinued operations | ||||
Number of Apartment Homes Sold | home | 474 | |||
Proceeds from Sale of Real Estate | $ 98,000,000 | |||
Gain on sale of communities | $ 20,604,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($)communitypropertyLease | Jun. 30, 2019USD ($)communitypropertyLease | |
Lessee, Lease, Description [Line Items] | ||
Number of office leases | Lease | 15 | 15 |
Number of leases not yet commenced | Lease | 2 | 2 |
Operating lease assets | $ | $ 100,377,000 | $ 100,377,000 |
Operating lease obligation | $ | 117,938,000 | 117,938,000 |
Operating Lease, Cost | $ | 3,568,000 | 7,105,000 |
Financing lease asset | $ | 22,004,000 | 22,004,000 |
Financing lease obligation | $ | $ 20,225,000 | $ 20,225,000 |
Properties on Land Subject to Land Leases | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating apartment communities owned | community | 11 | 11 |
Number of operating apartment communities under construction | community | 1 | 1 |
Number of commercial properties owned | property | 2 | 2 |
Number of leased properties under purchase options | property | 5 | |
Assets Held under Finance Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of operating apartment communities owned | community | 1 | 1 |
Number of Finance Leases for Parking Garages Adjacent to Communities | Lease | 2 | 2 |
Number of Finance Leases for Parking Garage Adjacent to Operating Community | Lease | 1 | 1 |
Number of Finance Leases for Parking Garage Adjacent to Development Community | Lease | 1 | 1 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Weighted-Average Remaining Lease Term and Discount Rate (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term - finance leases | 27 years |
Weighted-average remaining lease term - operating leases | 54 years |
Weighted-average discount rate - finance leases | 4.63% |
Weighted-average discount rate - operating leases | 4.45% |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Payments Due (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Lease Obligations | |
2019 | $ 6,676 |
2020 | 11,787 |
2021 | 13,432 |
2022 | 13,355 |
2023 | 12,810 |
Thereafter | 372,696 |
Total undiscounted cash flows | 430,756 |
Total lease liabilities | 117,938 |
Difference between discounted and undiscounted cash flows | 312,818 |
Finance Lease Obligations | |
2019 | 538 |
2020 | 1,077 |
2021 | 1,080 |
2022 | 1,082 |
2023 | 1,084 |
Thereafter | 41,220 |
Total undiscounted cash flows | 46,081 |
Total lease liabilities | 20,225 |
Difference between discounted and undiscounted cash flows | 25,856 |
2019 | 7,214 |
2020 | 12,864 |
2021 | 14,512 |
2022 | 14,437 |
2023 | 13,894 |
Thereafter | 413,916 |
Total undiscounted cash flows | 476,837 |
Total lease liabilities | 138,163 |
Difference between discounted and undiscounted cash flows | $ 338,674 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of NOI to net income | ||||
Net income | $ 168,305 | $ 254,543 | $ 338,723 | $ 396,133 |
Indirect operating expenses, net of corporate income | 23,018 | 19,677 | 42,740 | 38,636 |
Expensed transaction, development and other pursuit costs, net of recoveries | 2,711 | 1,047 | 3,806 | 1,847 |
Interest expense, net | 50,010 | 56,585 | 97,902 | 111,698 |
Loss on extinguishment of debt, net | 229 | 642 | 509 | 1,039 |
General and administrative expense | 18,965 | 15,209 | 32,671 | 29,640 |
Equity in (income) loss of unconsolidated real estate entities | (197) | (789) | 863 | (2,529) |
Depreciation expense | 162,693 | 156,685 | 324,749 | 315,743 |
Income tax expense (refund) | 0 | 58 | (6) | 58 |
Casualty and impairment gain, net | 0 | 0 | 0 | 58 |
Gain on sale of communities | (20,530) | (105,201) | (35,365) | (105,201) |
Gain on other real estate transactions, net | (34) | (370) | (300) | (323) |
Net operating income from real estate assets sold or held for sale | (1,495) | (19,680) | (4,077) | (40,377) |
Net operating income | $ 403,675 | $ 378,406 | $ 802,215 | $ 746,306 |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting [Abstract] | ||||
Rental income from real estate assets sold or held for sale | $ 2,591 | $ 30,024 | $ 7,193 | $ 61,857 |
Operating expenses from real estate assets sold or held for sale | (1,096) | (10,344) | (3,116) | (21,480) |
Net operating income from real estate assets sold or held for sale | $ 1,495 | $ 19,680 | $ 4,077 | $ 40,377 |
Segment Reporting (Details 3)
Segment Reporting (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting | ||||
Accounts Receivable, Credit Loss Expense (Reversal) | $ 3,576 | $ 7,611 | ||
Total revenue | $ 577,263 | 569,239 | $ 1,143,446 | 1,130,032 |
NOI | 403,675 | 378,406 | 802,215 | 746,306 |
Gross real estate | 22,841,879 | 21,193,326 | 22,841,879 | 21,193,326 |
Gross real estate assets held for sale | 77,030 | 77,030 | ||
Operating Segments | Established | ||||
Segment Reporting | ||||
Total revenue | 457,799 | 443,586 | 909,987 | 880,418 |
NOI | 326,774 | 317,836 | 652,620 | 628,436 |
Gross real estate | 15,676,978 | 15,600,326 | 15,676,978 | 15,600,326 |
Operating Segments | Established | New England | ||||
Segment Reporting | ||||
Total revenue | 63,819 | 62,110 | 127,092 | 123,318 |
NOI | 41,907 | 40,750 | 83,715 | 80,441 |
Gross real estate | 2,118,237 | 2,109,273 | 2,118,237 | 2,109,273 |
Operating Segments | Established | Metro NY/NJ | ||||
Segment Reporting | ||||
Total revenue | 103,073 | 99,745 | 204,276 | 197,774 |
NOI | 73,212 | 70,412 | 145,055 | 139,429 |
Gross real estate | 3,531,694 | 3,518,123 | 3,531,694 | 3,518,123 |
Operating Segments | Established | Mid-Atlantic | ||||
Segment Reporting | ||||
Total revenue | 73,094 | 71,099 | 145,103 | 140,868 |
NOI | 51,073 | 49,917 | 102,125 | 98,772 |
Gross real estate | 2,674,020 | 2,662,775 | 2,674,020 | 2,662,775 |
Operating Segments | Established | Pacific Northwest | ||||
Segment Reporting | ||||
Total revenue | 28,224 | 26,894 | 56,026 | 53,381 |
NOI | 20,605 | 19,142 | 40,815 | 37,766 |
Gross real estate | 987,121 | 984,029 | 987,121 | 984,029 |
Operating Segments | Established | Northern California | ||||
Segment Reporting | ||||
Total revenue | 88,301 | 85,559 | 175,661 | 169,983 |
NOI | 67,384 | 66,133 | 135,622 | 130,946 |
Gross real estate | 2,776,718 | 2,764,856 | 2,776,718 | 2,764,856 |
Operating Segments | Established | Southern California | ||||
Segment Reporting | ||||
Total revenue | 101,288 | 98,179 | 201,829 | 195,094 |
NOI | 72,593 | 71,482 | 145,288 | 141,082 |
Gross real estate | 3,589,188 | 3,561,270 | 3,589,188 | 3,561,270 |
Operating Segments | Other Stabilized | ||||
Segment Reporting | ||||
Total revenue | 75,696 | 59,134 | 148,371 | 114,894 |
NOI | 50,813 | 38,776 | 100,024 | 75,000 |
Gross real estate | 3,327,804 | 2,764,061 | 3,327,804 | 2,764,061 |
Operating Segments | Development / Redevelopment | ||||
Segment Reporting | ||||
Total revenue | 40,063 | 31,965 | 75,643 | 63,411 |
NOI | 26,088 | 21,794 | 49,571 | 42,870 |
Gross real estate | 3,719,999 | 2,618,434 | 3,719,999 | 2,618,434 |
Operating Segments | Disposals [Member] | ||||
Segment Reporting | ||||
Gross real estate | 1,153,352 | 1,153,352 | ||
Land Held for Future Development | ||||
Segment Reporting | ||||
Gross real estate | 18,606 | 130,802 | 18,606 | 130,802 |
Non-allocated | ||||
Segment Reporting | ||||
Total revenue | 1,114 | 954 | 2,252 | 1,841 |
Gross real estate | 98,492 | 79,703 | 98,492 | 79,703 |
Continuing Operations | ||||
Segment Reporting | ||||
Total revenue | 574,672 | 535,639 | 1,136,253 | 1,060,564 |
Continuing Operations | Operating Segments | Established | ||||
Segment Reporting | ||||
Total revenue | 457,799 | 443,586 | 909,987 | 880,418 |
Continuing Operations | Operating Segments | Other Stabilized | ||||
Segment Reporting | ||||
Total revenue | 75,696 | 59,134 | 148,371 | 114,894 |
Continuing Operations | Non-allocated | ||||
Segment Reporting | ||||
Total revenue | $ 1,114 | $ 954 | $ 2,252 | $ 1,841 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Shares | |
Exercised (in shares) | (69,686) |
2009 Plan | Employee and Directors Stock Options | |
Shares | |
Options outstanding at the beginning of the period (in shares) | 124,212 |
Exercised (in shares) | (69,686) |
Granted (in shares) | 0 |
Forfeited (in shares) | 0 |
Options outstanding at the end of the period (in shares) | 54,526 |
Options exercisable (in shares) | 49,861 |
Weighted average exercise price per share | |
Options outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 128.84 |
Exercised (in dollars per share) | $ / shares | 128.50 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Options outstanding at the end of the period (in dollars per share) | $ / shares | 129.28 |
Options exercisable (in dollars per share) | $ / shares | $ 126.30 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Details 2) - Performance Shares | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Performance awards | |
Equity instruments outstanding at the beginning of the period (in shares) | 267,129 |
Equity instruments granted (in shares) | 79,840 |
Change in awards based on performance (in shares) | (16,760) |
Converted to restricted stock (in shares) | (73,072) |
Forfeited (in shares) | (154) |
Equity instruments outstanding at the end of the period (in shares) | 256,983 |
Weighted average grant date fair value per award | |
Equity instruments outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 157.21 |
Grant date fair value per share (in dollars per share) | $ / shares | 200.69 |
Change in awards based on performance (in dollars per share) | $ / shares | 142.03 |
Converted to restricted stock (in dollars per share) | $ / shares | 142.03 |
Forfeited (in dollars per share) | $ / shares | 161.96 |
Equity instruments outstanding at the end of the period (in dollars per share) | $ / shares | $ 176.03 |
Grants in period based on total shareholder metrics | 47,091 |
Grants in period based on financial metrics | 32,749 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans Stock-Based Compensation Plans (Details 3) - Performance Shares | 6 Months Ended |
Jun. 30, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend yield | 3.10% |
Estimated volatility, Minimum (as a percent) | 13.90% |
Estimated volatility, Maximum (as a percent) | 18.80% |
Risk-free interest rate, minimum (as a percent) | 2.46% |
Risk-free interest rate, maximum (as a percent) | 2.57% |
Average estimated fair value (in dollars per share) | $ 204.15 |
Historical volatility (as a percent) | 50.00% |
Implied volatility (as a percent) | 50.00% |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans Stock-Based Compensation Plans (Details 4) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted stock | ||
Restricted stock shares | ||
Equity instruments outstanding at the beginning of the period (in shares) | 160,411 | |
Equity instruments granted (in shares) | 77,287 | 98,085 |
Vested (in shares) | (77,244) | |
Forfeited (in shares) | (1,438) | |
Equity instruments outstanding at the end of the period (in shares) | 159,016 | |
Restricted stock shares weighted average grant date fair value per share | ||
Equity instruments outstanding at the beginning of the period (in dollars per share) | $ 166.33 | |
Grant date fair value per share (in dollars per share) | 195.96 | |
Vested (in dollars per share) | 166.52 | |
Forfeited (in dollars per share) | 174.19 | |
Equity instruments outstanding at the end of the period (in dollars per share) | $ 180.57 | |
Restricted Stock Converted From Performance Shares | ||
Restricted stock shares | ||
Equity instruments outstanding at the beginning of the period (in shares) | 209,238 | |
Equity instruments granted (in shares) | 73,072 | 88,297 |
Vested (in shares) | (110,366) | |
Forfeited (in shares) | 0 | |
Equity instruments outstanding at the end of the period (in shares) | 171,944 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans (Details 5) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Additional disclosures | ||
Stock-based compensation expense | $ 13,129 | $ 9,843 |
Capitalized stock-based compensation cost | $ 5,374 | $ 5,490 |
Performance Shares | ||
Additional disclosures | ||
Grant date value (in dollars per share) | $ 195.72 | |
Restricted stock and restricted stock units | ||
Additional disclosures | ||
Unrecognized compensation cost for unvested restricted stock | $ 41,250 | |
Weighted average period for recognition of unrecognized compensation cost | 2 years 3 months 18 days |
Related Party Arrangements (Det
Related Party Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Related Party Arrangements | |||||
Management, development and other fees | $ 1,114 | $ 954 | $ 2,252 | $ 1,841 | |
Compensation expense | 13,129 | 9,843 | |||
Unconsolidated real estate entities | |||||
Related Party Arrangements | |||||
Outstanding receivables | 2,271 | 2,271 | $ 2,519 | ||
Non Employee Director | Restricted stock and deferred stock awards | |||||
Related Party Arrangements | |||||
Compensation expense | 405 | $ 357 | 830 | $ 746 | |
Amount of deferred compensation | $ 1,315 | $ 1,315 | $ 571 |
Fair Value (Details)
Fair Value (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($)derivative | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($)derivativeventure | Jun. 30, 2018USD ($) | |
Derivative instruments and Hedging Activities | ||||||
Derivative, Notional Amounts Settled During Period | $ 250,000,000 | |||||
Payments for (Proceeds from) Hedge, Financing Activities | $ 12,309,000 | $ (12,598,000) | ||||
Amortization Period of Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | 10 years | |||||
(Loss) gain on cash flow hedges | $ (2,888,000) | $ (7,231,000) | $ 0 | $ 11,501,000 | $ (10,119,000) | $ 11,499,000 |
Cash Flow Hedges | ||||||
Derivative instruments and Hedging Activities | ||||||
Number of derivative instruments held | derivative | 4 | 4 | ||||
Interest Rate Swap | Cash Flow Hedges | ||||||
Derivative instruments and Hedging Activities | ||||||
Derivative, Notional Amounts Entered into During Period | $ 250,000,000 | |||||
Notional amount | $ 250,000,000 | $ 250,000,000 | ||||
Put Option | ||||||
Derivative instruments and Hedging Activities | ||||||
Number of ventures in which entity is required to purchase interest in investment at guaranteed minimum amount | venture | 2 | |||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Derivative instruments and Hedging Activities | ||||||
Estimated hedging losses to be reclassified from accumulated other comprehensive loss into earnings within the next twelve months | $ 6,983,000 | |||||
Not Designated as Hedging Instrument | ||||||
Derivative instruments and Hedging Activities | ||||||
Number of derivative instruments held | derivative | 5 | 5 | ||||
Not Designated as Hedging Instrument | Interest Rate Cap | ||||||
Derivative instruments and Hedging Activities | ||||||
Notional amount | $ 446,177,000 | $ 446,177,000 | ||||
Unsecured notes | Unsecured Notes 3.30 Percent [Domain] | ||||||
Derivative instruments and Hedging Activities | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.30% | 3.30% |
Fair Value Fair Value (Details
Fair Value Fair Value (Details 2) | Jun. 30, 2019USD ($) |
Not Designated as Hedging Instrument | Interest Rate Cap | |
Derivative instruments and Hedging Activities | |
Notional amount | $ 446,177,000 |
Derivative weighted average interest rate | 3.50% |
Derivative, average cap interest rate | 6.50% |
Cash Flow Hedges | Interest Rate Swap | |
Derivative instruments and Hedging Activities | |
Notional amount | $ 250,000,000 |
Derivative, average cap interest rate | 2.20% |
Fair Value (Details 3)
Fair Value (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | ||||||
Cash flow hedge losses reclassified to earnings | $ (1,611) | $ (1,468) | $ (1,455) | $ (1,756) | $ (3,079) | $ (3,213) |
Fair Value (Details 4)
Fair Value (Details 4) - Recurring basis - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Estimate of Fair Value Measurement | ||
Financial Instruments Measured/Discussed at Fair Value | ||
DownREIT units | $ (1,524) | $ (1,305) |
Total | (7,521,298) | (6,782,287) |
Estimate of Fair Value Measurement | Unsecured notes | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (6,097,629) | (5,268,277) |
Estimate of Fair Value Measurement | Secured Debt and Variable Rate Unsecured Indebtedness | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (1,417,624) | (1,505,876) |
Estimate of Fair Value Measurement | Interest Rate Cap | Not Designated as Hedging Instrument | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 2 | |
Estimate of Fair Value Measurement | Interest Rate Swap | Cash Flow Hedges | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 18 | |
Derivative liability | (4,198) | (6,366) |
Estimate of Fair Value Measurement | Put Option | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Fair value of remaining outstanding Puts | (341) | (465) |
Fair Value, Inputs, Level 1 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
DownREIT units | (1,524) | (1,305) |
Total | (6,099,153) | (5,269,582) |
Fair Value, Inputs, Level 1 | Unsecured notes | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (6,097,629) | (5,268,277) |
Fair Value, Inputs, Level 2 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Total | (1,421,804) | (1,512,240) |
Fair Value, Inputs, Level 2 | Secured Debt and Variable Rate Unsecured Indebtedness | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (1,417,624) | (1,505,876) |
Fair Value, Inputs, Level 2 | Interest Rate Cap | Not Designated as Hedging Instrument | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 2 | |
Fair Value, Inputs, Level 2 | Interest Rate Swap | Cash Flow Hedges | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 18 | |
Derivative liability | (4,198) | (6,366) |
Fair Value, Inputs, Level 3 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Total | (341) | (465) |
Fair Value, Inputs, Level 3 | Put Option | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Fair value of remaining outstanding Puts | $ (341) | $ (465) |
Subsequent Events (Details)
Subsequent Events (Details) | Aug. 06, 2019USD ($)communityhome | Jul. 31, 2019USD ($)home | Jun. 30, 2019USD ($)community | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Subsequent Event [Line Items] | |||||
Payments to Acquire Other Real Estate | $ 152,260,000 | $ 0 | |||
Number of Communities Held for Sale | community | 1 | ||||
Real Estate Investments, Net | $ 18,009,444,000 | $ 17,730,930,000 | |||
AVA Stamford [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of Apartment Homes Sold | home | 306 | ||||
Proceeds from Sale of Real Estate | $ 105,000,000 | ||||
Subsequent Event Dispositions [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of Apartment Homes Sold | community | 222 | ||||
Number of Communities Held for Sale | community | 3 | ||||
Number of Apartment Homes Held for Sale | home | 696 | ||||
Real Estate Investments, Net | $ 84,340,000 | ||||
Number of Communities Sold | community | 1 | ||||
Number of Communities Held for Sale and Not Sold | community | 2 | ||||
Archstone Lexington [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Proceeds from Sale of Real Estate | $ 45,100,000 | ||||
Portico at Silver Spring Metro [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of Apartment Homes Acquired | home | 151 | ||||
Payments to Acquire Other Real Estate | $ 43,450,000 | ||||
Secured Debt [Member] | Notes Payable Maturities 2020 [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Repayments of Secured Debt | 21,700,000 | ||||
Secured Debt [Member] | Notes Payable Maturities 2029 [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt Instrument, Face Amount | $ 30,250,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.26% |