Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
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 | 4040 Wilson Blvd., Suite 1000 | |
Entity Address, Address City or Town | Arlington | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22203 | |
City Area Code | 703 | |
Local Phone Number | 329-6300 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | AVB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 140,743,559 | |
Entity Central Index Key | 0000915912 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Real estate: | ||
Land and improvements | $ 4,361,878 | $ 4,299,162 |
Buildings and improvements | 16,916,054 | 16,668,496 |
Furniture, fixtures and equipment | 888,633 | 829,242 |
Gross operating real estate | 22,166,565 | 21,796,900 |
Less accumulated depreciation | (5,489,485) | (5,164,398) |
Net operating real estate | 16,677,080 | 16,632,502 |
Construction in progress, including land | 1,272,171 | 1,303,751 |
Land held for development | 39,829 | 0 |
For-sale condominium inventory | 311,236 | 457,809 |
Real estate assets held for sale, net | 0 | 38,927 |
Net operating real estate | 18,300,316 | 18,432,989 |
Cash and cash equivalents | 322,817 | 39,687 |
Cash in escrow | 92,877 | 87,927 |
Resident security deposits | 33,805 | 34,224 |
Investments in unconsolidated real estate entities | 176,352 | 165,806 |
Deferred development costs | 81,395 | 70,486 |
Prepaid expenses and other assets | 184,023 | 164,971 |
Right of use lease assets | 159,905 | 124,961 |
Total assets | 19,351,490 | 19,121,051 |
LIABILITIES AND EQUITY | ||
Unsecured notes, net | 6,698,438 | 6,358,648 |
Variable rate unsecured credit facility | 0 | 0 |
Mortgage notes payable, net | 931,772 | 937,642 |
Dividends payable | 226,126 | 215,414 |
Payables for construction | 80,588 | 92,135 |
Accrued expenses and other liabilities | 252,627 | 274,013 |
Lease liabilities | 183,507 | 140,468 |
Accrued interest payable | 44,337 | 47,154 |
Resident security deposits | 60,536 | 61,752 |
Liabilities related to real estate assets held for sale | 0 | 375 |
Total liabilities | 8,477,931 | 8,127,601 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 2,754 | 3,252 |
Equity: | ||
Preferred stock, $0.01 par value; $25 liquidation preference; 50,000,000 shares authorized at June 30, 2020 and December 31, 2019; zero shares issued and outstanding at June 30, 2020 and December 31, 2019 | 0 | 0 |
Common stock, $0.01 par value; 280,000,000 shares authorized at June 30, 2020 and December 31, 2019; 140,743,120 and 140,643,962 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 1,407 | 1,406 |
Additional paid-in capital | 10,742,796 | 10,736,733 |
Accumulated earnings less dividends | 172,304 | 282,913 |
Accumulated other comprehensive loss | (46,317) | (31,503) |
Stockholders' Equity Attributable to Parent | 10,870,190 | 10,989,549 |
Stockholders' Equity Attributable to Noncontrolling Interest | 615 | 649 |
Total equity | 10,870,805 | 10,990,198 |
Total liabilities and equity | $ 19,351,490 | $ 19,121,051 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
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) | 140,743,120 | 140,643,962 |
Common stock, shares outstanding (in shares) | 140,743,120 | 140,643,962 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue: | ||||
Operating Lease, Lease Income | $ 575,479 | $ 576,149 | $ 1,176,123 | $ 1,141,194 |
Management, development and other fees | 926 | 1,114 | 1,933 | 2,252 |
Total revenue | 576,405 | 577,263 | 1,178,056 | 1,143,446 |
Expenses: | ||||
Operating expenses, excluding property taxes | 131,090 | 132,924 | 263,083 | 256,378 |
Property taxes | 67,013 | 62,187 | 134,039 | 123,516 |
Interest expense, net | 53,399 | 50,010 | 109,313 | 97,902 |
Loss on extinguishment of debt, net | 268 | 229 | 9,438 | 509 |
Depreciation expense | 176,249 | 162,693 | 354,160 | 324,749 |
General and administrative expense | 15,573 | 18,965 | 32,893 | 32,671 |
Expensed transaction, development and other pursuit costs, net of recoveries | 388 | 1,766 | 3,722 | 2,388 |
Total expenses | 443,980 | 428,774 | 906,648 | 838,113 |
Equity in income (loss) of unconsolidated real estate entities | 512 | 197 | 1,687 | (863) |
Gain on sale of communities | 35,295 | 20,530 | 59,731 | 35,365 |
Gain on other real estate transactions, net | 156 | 34 | 199 | 300 |
Gain (Loss) on Sale of Other Investments | 1,348 | (945) | 4,808 | (1,418) |
Income before income taxes | 169,736 | 168,305 | 337,833 | 338,717 |
Income Tax Expense (Benefit) | 1,133 | 0 | 1,042 | 6 |
Net income | 170,869 | 168,305 | 338,875 | 338,723 |
Net income attributable to noncontrolling interests | (41) | (24) | (76) | (76) |
Net income attributable to common stockholders | 170,828 | 168,281 | 338,799 | 338,647 |
Other comprehensive income (loss): | ||||
Loss on cash flow hedges | (1,461) | (2,888) | (19,064) | (10,119) |
Cash flow hedge losses reclassified to earnings | 2,301 | 1,611 | 4,250 | 3,079 |
Comprehensive income | $ 171,668 | $ 167,004 | $ 323,985 | $ 331,607 |
Earnings per common share - basic: | ||||
Net income attributable to common stockholders (in dollars per share) | $ 1.21 | $ 1.21 | $ 2.41 | $ 2.43 |
Earnings per common share - diluted: | ||||
Net income attributable to common stockholders (in dollars per share) | $ 1.21 | $ 1.21 | $ 2.41 | $ 2.43 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 338,875 | $ 338,723 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation expense | 354,160 | 324,749 |
Amortization of deferred financing costs | 3,720 | 3,565 |
Amortization of debt discount | 833 | 789 |
Loss on extinguishment of debt, net | 9,438 | 509 |
Amortization of stock-based compensation | 11,870 | 13,719 |
Equity in loss of, and return on, unconsolidated real estate entities and noncontrolling interests, net of eliminations | 3,705 | 10,131 |
Abandonment of development pursuits | 2,095 | 1,285 |
Cash flow hedge losses reclassified to earnings | 4,250 | 3,079 |
Gain on sale of real estate assets | (59,930) | (35,665) |
Gain on for-sale condominiums | (7,446) | 0 |
Increase in resident security deposits, prepaid expenses and other assets | (13,595) | (24,241) |
(Decrease) increase in accrued expenses, other liabilities and accrued interest payable | (19,058) | 1,089 |
Net cash provided by operating activities | 628,917 | 637,732 |
Cash flows from investing activities: | ||
Development/redevelopment of real estate assets including land acquisitions and deferred development costs | (383,139) | (560,385) |
Acquisition of real estate assets, including partnership interest | 0 | (152,260) |
Capital expenditures - existing real estate assets | (51,858) | (48,006) |
Capital expenditures - non-real estate assets | (14,461) | (4,222) |
Mortgage note receivable payments | (11,547) | 7,562 |
(Decrease) increase in payables for construction | 132,882 | 168,034 |
Proceeds from the sale of for-sale condominiums, net of selling costs | 155,217 | 0 |
Mortgage note receivable lending | (209) | (507) |
Mortgage note receivable payments | 2,238 | 978 |
Investments in unconsolidated real estate entities | (14,251) | (1,218) |
Net cash used in investing activities | (185,128) | (590,024) |
Cash flows from financing activities: | ||
Issuance of common stock, net | 1,613 | 206,193 |
Dividends paid | (437,326) | (415,295) |
Issuance of mortgage notes payable | 51,000 | 0 |
Repayments of mortgage notes payable, including prepayment penalties | (56,852) | (137,653) |
Issuance of unsecured notes | 1,296,581 | 449,803 |
Repayments of Unsecured Debt | (958,680) | 0 |
Payment of deferred financing costs | (11,276) | (10,668) |
Payment for termination of forward interest rate swaps | (25,135) | (12,309) |
Payments to Noncontrolling Interests | (42) | |
Proceeds from Noncontrolling Interests | 337 | |
Payments related to tax withholding for share-based compensation | (14,750) | (14,286) |
Distributions to DownREIT partnership unitholders | (24) | (23) |
Distributions to joint venture and profit-sharing partners | (218) | (227) |
Preferred interest obligation redemption and dividends | (600) | (1,400) |
Net cash (used in) provided by financing activities | (155,709) | 64,472 |
Net increase in cash and cash equivalents | 288,080 | 112,180 |
Cash and cash equivalents and restricted cash, beginning of period | 127,614 | 217,864 |
Cash and cash equivalents and restricted cash, end of period | 415,694 | 330,044 |
Cash paid during the period for interest, net of amount capitalized | 103,328 | 88,948 |
Supplemental Cash Flow Information [Abstract] | ||
Cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statements of Cash Flows | $ 415,694 | $ 330,044 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)Lease | Jun. 30, 2020USD ($)Leaseshares | Jun. 30, 2019USD ($)shares | Jan. 01, 2019USD ($) | |
Supplemental disclosures of non-cash investing and financing activities | ||||
Common stock issued through the dividend reinvestment plan (in shares) | shares | 1,183 | 1,092 | ||
Common stock issued through the dividend reinvestment plan | $ 217 | $ 208 | ||
Number of shares withheld to satisfy employees' tax withholding and other liabilities (in shares) | shares | 73,089 | 75,195 | ||
Shares withheld to satisfy employees' tax withholding and other liabilities, value | $ 14,750 | $ 14,206 | ||
Stock issued during period, shares, share-based compensation, forfeited (in shares) | shares | 4,050 | |||
Stock issued during period, value, share-based compensation, forfeited | $ 685 | 250 | ||
Dividends declared but not paid | $ 226,126 | 226,126 | ||
Change in redemption value of redeemable noncontrolling interest | 146 | |||
Cash flow hedge losses reclassified to earnings | 2,301 | 4,250 | 3,079 | |
Operating Lease, Right-of-Use Asset | 138,113 | 138,113 | ||
Total lease liabilities | 163,321 | 163,321 | ||
Increase (Decrease) in Derivative Liabilities | (98) | 4,198 | ||
Increase (Decrease) in Derivative Assets | $ 178 | $ 18 | ||
Restricted Stock and Restricted Stock Converted From Performance Shares | ||||
Supplemental disclosures of non-cash investing and financing activities | ||||
Equity instruments granted (in shares) | shares | 164,526 | 150,359 | ||
Restricted Stock Converted From Performance Shares | ||||
Supplemental disclosures of non-cash investing and financing activities | ||||
Equity instruments granted (in shares) | shares | 96,317 | 73,072 | ||
Restricted stock | ||||
Supplemental disclosures of non-cash investing and financing activities | ||||
Equity instruments granted (in shares) | shares | 68,209 | 77,287 | ||
Fair value of shares issued | $ 15,150 | $ 15,145 | ||
Stock issued during period, shares, share-based compensation, forfeited (in shares) | shares | 4,050 | 1,438 | ||
Common stock | ||||
Supplemental disclosures of non-cash investing and financing activities | ||||
Dividends declared but not paid | 224,482 | $ 224,482 | $ 212,822 | |
Accumulated earnings less dividends | ||||
Supplemental disclosures of non-cash investing and financing activities | ||||
Change in redemption value of redeemable noncontrolling interest | 146 | (325) | $ 269 | |
Accounting Standards Update 2016-02 | ||||
Supplemental disclosures of non-cash investing and financing activities | ||||
Operating Lease, Right-of-Use Asset | $ 122,276 | |||
Total lease liabilities | $ 122,276 | |||
New Office Leases | ||||
Supplemental disclosures of non-cash investing and financing activities | ||||
Operating Lease, Right-of-Use Asset | $ 46,875 | $ 46,875 | ||
Number of New Office Leases | Lease | 2 | 2 | ||
Total lease liabilities | $ 46,875 | $ 46,875 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
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 in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion markets in Southeast Florida and Denver, Colorado (the "Expansion Markets"). At June 30, 2020 , the Company owned or held a direct or indirect ownership interest in 276 operating apartment communities containing 80,182 apartment homes in 11 states and the District of Columbia. In addition, the Company owned or held a direct or indirect ownership interest in 19 communities under development that are expected to contain an aggregate of 6,198 apartment homes when completed, as well as The Park Loggia, which contains 172 for-sale residential condominiums, of which 52 have been sold as of June 30, 2020 , and 67,000 square feet of retail space, of which 64% has been leased as of June 30, 2020 . 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 9,786 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 2019 Annual Report on Form 10-K. The results of operations for the three and six months ended June 30, 2020 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 6/30/2020 6/30/2019 6/30/2020 6/30/2019 Basic and diluted shares outstanding Weighted average common shares - basic 140,450,744 139,113,390 140,413,857 138,724,479 Weighted average DownREIT units outstanding 7,500 7,500 7,500 7,500 Effect of dilutive securities 279,916 497,341 330,974 495,397 Weighted average common shares - diluted 140,738,160 139,618,231 140,752,331 139,227,376 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 170,828 $ 168,281 $ 338,799 $ 338,647 Net income allocated to unvested restricted shares (390 ) (435 ) (817 ) (935 ) Net income attributable to common stockholders, adjusted $ 170,438 $ 167,846 $ 337,982 $ 337,712 Weighted average common shares - basic 140,450,744 139,113,390 140,413,857 138,724,479 Earnings per common share - basic $ 1.21 $ 1.21 $ 2.41 $ 2.43 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 170,828 $ 168,281 $ 338,799 $ 338,647 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 12 12 24 23 Adjusted net income attributable to common stockholders $ 170,840 $ 168,293 $ 338,823 $ 338,670 Weighted average common shares - diluted 140,738,160 139,618,231 140,752,331 139,227,376 Earnings per common share - diluted $ 1.21 $ 1.21 $ 2.41 $ 2.43 All options to purchase shares of common stock outstanding as of June 30, 2020 and 2019 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. For-Sale Condominium Inventory The Company presents for-sale condominium inventory at historical cost and evaluates the condominium inventory for impairment when potential indicators exist, as further discussed in Note 6, "Real Estate Disposition Activities." 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 and (ii) office leases for its corporate headquarters and regional offices. Lessee Considerations The Company assesses 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’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. Lease payments included in the lease liability include only payments that depend on an index or rate. For leases that have options to extend the term or terminate the lease early, the Company only factored the impact of such 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 on a lease by lease basis using the Company’s actual borrowing rates as well as indicative market pricing for longer term rates and taking into consideration the remaining term of each of the lease agreements. Lessor Considerations The Company evaluates leases in which it is the lessor, which are composed of residential and retail leases at its apartment communities, and determined these leases 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, which, for residential leases, 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, it is reasonably certain that the lessee will exercise this option. Revenue and Gain Recognition Revenue from contracts with customers is recognized in accordance with the transfer of goods and services to customers at an amount that reflects the consideration that the Company expects to be entitled to for those goods and services. The majority of the Company’s revenue is derived from residential and retail rental income and other lease income, which are accounted for under ASC 842, Leases, discussed above. The Company's revenue streams that are not accounted for under ASC 842 include (i) management fees, (ii) rental and non-rental related income and (iii) gains or losses on the sale of real estate. 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, 2020 and 2019 . Segment information for total revenue has been adjusted to exclude the real estate assets that were sold from January 1, 2019 through June 30, 2020 , or otherwise qualify as held for sale as of June 30, 2020 , as described in Note 6, "Real Estate Disposition Activities" (dollars in thousands): For the three months ended Established Other Development/ Non- Total For the period ended June 30, 2020 Management, development and other fees $ — $ — $ — $ 926 $ 926 Rental and non-rental related income (3) 1,870 317 295 — 2,482 Total non-lease revenue (4) 1,870 317 295 926 3,408 Lease income (5) 521,558 34,360 16,397 — 572,315 Business interruption insurance proceeds 103 — — — 103 Total revenue $ 523,531 $ 34,677 $ 16,692 $ 926 $ 575,826 For the period ended June 30, 2019 Management, development and other fees $ — $ — $ — $ 1,114 $ 1,114 Rental and non-rental related income (3) 2,154 153 51 — 2,358 Total non-lease revenue (4) 2,154 153 51 1,114 3,472 Lease income (5) 536,916 25,369 2,359 — 564,644 Business interruption insurance proceeds 435 — — — 435 Total revenue $ 539,505 $ 25,522 $ 2,410 $ 1,114 $ 568,551 For the six months ended Established Other Development/ Non- Total For the period ended June 30, 2020 Management, development and other fees $ — $ — $ — $ 1,933 $ 1,933 Rental and non-rental related income (3) 3,478 793 527 — 4,798 Total non-lease revenue (4) 3,478 793 527 1,933 6,731 Lease income (5) 1,067,906 69,374 31,938 — 1,169,218 Business interruption insurance proceeds 103 — — — 103 Total revenue $ 1,071,487 $ 70,167 $ 32,465 $ 1,933 $ 1,176,052 For the period ended June 30, 2019 Management, development and other fees $ — $ — $ — $ 2,252 $ 2,252 Rental and non-rental related income (3) 3,986 634 67 — 4,687 Total non-lease revenue (4) 3,986 634 67 2,252 6,939 Lease income (5) 1,066,742 46,914 2,892 — 1,116,548 Business interruption insurance proceeds 607 — — — 607 Total revenue $ 1,071,335 $ 47,548 $ 2,959 $ 2,252 $ 1,124,094 __________________________________ (1) The Company had no Redevelopment Communities for the three and six months ended June 30, 2020 and 2019 . (2) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. (3) Amounts include revenue streams related to leasing 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. (4) Represents all revenue accounted for under ASU 2014-09. (5) Amounts include all revenue streams derived from residential and retail rental income and other lease income, which are accounted for under ASC 842. 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, 2020 . COVID-19 Pandemic In March 2020, the World Health Organization designated COVID-19 as a pandemic. While the Company has taken various actions in response to the COVID-19 pandemic, the ultimate impact on its consolidated results of operations, cash flows, financial condition and liquidity will depend on (i) the duration and severity of the pandemic, (ii) the duration and nature of governmental responses to contain the spread of the disease and assist consumers and businesses and (iii) how quickly and to what extent normal economic and operating conditions can resume. Because of this uncertainty, the Company is not able to estimate the expected impact of the COVID-19 pandemic on its results of operations, cash flows, financial condition, or liquidity for the year ending December 31, 2020 at this time. As of June 30, 2020 , the Company assessed the collectibility of the outstanding lease income receivables as a result of the impact of the COVID-19 pandemic on its residential and retail lease portfolios. The Company recorded an aggregate offset to income for uncollectible lease revenue for its residential and retail portfolios of $20,099,000 and $24,279,000 for the three and six months ended June 30, 2020 , respectively, under ASC 842 and ASC 450, Contingencies. Recently Issued and Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This ASU requires entities to estimate a lifetime expected credit loss for most financial assets, including (i) trade and other receivables, (ii) other long term financings including available for sale and held-to-maturity debt securities and (iii) loans. Subsequently, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which amends the scope of ASU 2016-13 and clarified that receivables arising from operating leases are not within the scope of the standard and should continue to be accounted for in accordance with the leases standard (Topic 842). The new standard was adopted on January 1, 2020 and does not have a material effect on the Company’s financial position or results of operations. |
Interest Capitalized
Interest Capitalized | 6 Months Ended |
Jun. 30, 2020 | |
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 $11,019,000 and $17,127,000 for the three months ended June 30, 2020 and 2019 , respectively, and $22,517,000 and $34,716,000 for the six months ended June 30, 2020 and 2019 , respectively. |
Mortgage Notes Payable, Unsecur
Mortgage Notes Payable, Unsecured Notes and Credit Facility | 6 Months Ended |
Jun. 30, 2020 | |
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 (the "Term Loans") and Credit Facility, as defined below, as of June 30, 2020 and December 31, 2019 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, 2020 and December 31, 2019 , as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, "Real Estate Disposition Activities"). 6/30/2020 12/31/2019 Fixed rate unsecured notes (1) $ 6,500,000 $ 5,850,000 Variable rate unsecured notes (1) — 300,000 Term Loans (1) 250,000 250,000 Fixed rate mortgage notes payable - conventional and tax-exempt (2) 478,070 479,221 Variable rate mortgage notes payable - conventional and tax-exempt (2) 471,450 476,150 Total mortgage notes payable and unsecured notes and Term Loans 7,699,520 7,355,371 Credit Facility — — Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility $ 7,699,520 $ 7,355,371 _____________________________________ (1) Balances at June 30, 2020 and December 31, 2019 exclude $11,183 and $8,610 , respectively, of debt discount, and $40,379 and $32,742 , respectively, of deferred financing costs, as reflected in unsecured notes, net on the accompanying Condensed Consolidated Balance Sheets. (2) Balances at June 30, 2020 and December 31, 2019 exclude $14,618 and $14,464 , respectively, of debt discount, and $3,130 and $3,265 , respectively, of deferred financing costs, as reflected in mortgage notes payable, net on the accompanying Condensed Consolidated Balance Sheets. The following debt activity occurred during the six months ended June 30, 2020 : • In February 2020, the Company issued $700,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of approximately $694,701,000 . The notes mature in March 2030 and were issued at a 2.30% interest rate. • In February 2020, the Company refinanced the secured borrowing for Avalon San Bruno III. The secured borrowing had a fixed interest rate of 3.08% and was refinanced for a principal balance of $51,000,000 , with a fixed interest rate of 2.38% and maturity date of March 2027. • In March 2020, the Company repaid (i) $400,000,000 principal amount of its 3.625% unsecured notes in advance of the October 2020 scheduled maturity and (ii) $250,000,000 principal amount of its 3.95% unsecured notes in advance of the January 2021 scheduled maturity. In conjunction with these repayments, the Company recognized a loss on debt extinguishment of $9,170,000 for prepayment penalties and the non-cash write-off of unamortized deferred financing costs. • In May 2020, the Company issued $600,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of approximately $593,430,000 . The notes mature in January 2031 and were issued at a 2.45% interest rate. • In May 2020, the Company repaid $300,000,000 principal amount of its variable rate unsecured notes in advance of the January 2021 scheduled maturity, recognizing a charge of $268,000 for the non-cash write-off of deferred financing costs. At June 30, 2020 , the Company had a $1,750,000,000 revolving variable rate unsecured credit facility with a syndicate of banks (the “Credit Facility”) which matures in February 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 ( 0.94% at June 30, 2020 ), assuming a one month borrowing rate. The annual facility fee is 0.125% (or approximately $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, 2020 and December 31, 2019 . The Company had $4,952,000 and $11,488,000 outstanding in letters of credit that reduced the borrowing capacity as of June 30, 2020 and December 31, 2019 , respectively. In addition, the Company had $32,322,000 and $24,939,000 outstanding in additional letters of credit on a separate facility unrelated to the Credit Facility as of June 30, 2020 and December 31, 2019 , respectively. In the aggregate, secured notes payable mature at various dates from December 2020 through July 2066, and are secured by certain apartment communities (with a net carrying value of $1,576,478,000 , excluding communities classified as held for sale, as of June 30, 2020 ). The weighted average interest rate of the Company's fixed rate secured notes payable (conventional and tax-exempt) was 3.8% and 3.9% at June 30, 2020 and December 31, 2019 , 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 1.7% and 3.2% at June 30, 2020 and December 31, 2019 , respectively. Scheduled payments and maturities of secured notes payable and unsecured notes outstanding at June 30, 2020 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 2020 $ 2,756 $ 67,904 $ — N/A 2021 9,304 27,844 — N/A 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 14,980 236,100 400,000 3.350 % 2028 20,607 — 450,000 3.200 % 2029 11,742 66,250 450,000 3.300 % Thereafter 189,162 244,584 700,000 2.300 % 600,000 2.450 % 350,000 3.900 % 300,000 4.150 % 300,000 4.350 % $ 306,838 $ 642,682 $ 6,750,000 The Company was in compliance at June 30, 2020 with customary financial covenants under the Credit Facility, the Term Loans and the Company's fixed rate unsecured notes. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity The following summarizes the changes in equity for the six months ended June 30, 2020 (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, 2019 $ 1,406 $ 10,736,733 $ 282,913 $ (31,503 ) $ 10,989,549 $ 649 $ 10,990,198 Net income attributable to common stockholders — — 167,971 — 167,971 — 167,971 Loss on cash flow hedges, net — — — (17,603 ) (17,603 ) — (17,603 ) Cash flow hedge losses reclassified to earnings — — — 1,949 1,949 — 1,949 Change in redemption value of redeemable noncontrolling interest — — 471 — 471 — 471 Noncontrolling interests income allocation — — — — — (35 ) (35 ) Dividends declared to common stockholders ($1.59 per share) — — (224,083 ) — (224,083 ) — (224,083 ) Issuance of common stock, net of withholdings 1 (12,492 ) (1,616 ) — (14,107 ) — (14,107 ) Amortization of deferred compensation — 7,781 — — 7,781 — 7,781 Balance at March 31, 2020 $ 1,407 $ 10,732,022 $ 225,656 $ (47,157 ) $ 10,911,928 $ 614 $ 10,912,542 Net income attributable to common stockholders — — 170,828 — 170,828 — 170,828 Loss on cash flow hedges, net — — — (1,461 ) (1,461 ) — (1,461 ) Cash flow hedge losses reclassified to earnings — — — 2,301 2,301 — 2,301 Change in redemption value of redeemable noncontrolling interest — — (146 ) — (146 ) — (146 ) Noncontrolling interests income allocation — — — — — 1 1 Dividends declared to common stockholders ($1.59 per share) — — (224,172 ) — (224,172 ) — (224,172 ) Issuance of common stock, net of withholdings — 1,050 138 — 1,188 — 1,188 Amortization of deferred compensation — 9,724 — — 9,724 — 9,724 Balance at June 30, 2020 $ 1,407 $ 10,742,796 $ 172,304 $ (46,317 ) $ 10,870,190 $ 615 $ 10,870,805 The following summarizes the changes in equity for the six months ended June 30, 2019 (dollars in thousands): Common Additional Accumulated Accumulated Total AvalonBay stockholder's equity Noncontrolling interests Total 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 interests income allocation — — — — — 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 As of June 30, 2020 and December 31, 2019 , 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, 2020 , the Company: i. issued 1,902 shares of common stock in connection with stock options exercised; ii. issued 1,183 common shares through the Company's dividend reinvestment plan; iii. issued 164,526 common shares in connection with restricted stock grants and the conversion of performance awards to restricted shares; iv. withheld 73,089 common shares to satisfy employees' tax withholding and other liabilities; v. issued 8,686 common shares through the Employee Stock Purchase Plan; and vi. canceled 4,050 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, 2020 is not reflected on the accompanying Condensed Consolidated Balance Sheets as of June 30, 2020 , and will not be reflected until recognized as compensation cost. In May 2019, the Company commenced a fifth 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. During the six months ended June 30, 2020 , the Company had no sales under the program. As of June 30, 2020 , the Company had $752,878,000 remaining authorized for issuance under this program. |
Investments in Real Estate Enti
Investments in Real Estate Entities | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 , the Company had investments in seven unconsolidated real estate entities with ownership interest percentages ranging from 20.0% to 50.0% . 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): 6/30/2020 12/31/2019 (unaudited) Assets: Real estate, net $ 1,203,277 $ 1,204,470 Other assets 198,997 196,488 Total assets $ 1,402,274 $ 1,400,958 Liabilities and partners' capital: Mortgage notes payable, net (1) $ 780,217 $ 782,257 Other liabilities 154,881 157,379 Partners' capital 467,176 461,322 Total liabilities and partners' capital $ 1,402,274 $ 1,400,958 _________________________________ (1) The Company has not guaranteed the debt, nor does the Company have any obligation to fund this debt should the unconsolidated entity be unable to do so. 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 6/30/2020 6/30/2019 6/30/2020 6/30/2019 (unaudited) (unaudited) Rental and other income $ 30,427 $ 35,998 $ 63,499 $ 71,253 Operating and other expenses (11,732 ) (13,885 ) (23,912 ) (28,089 ) Gain on sale of communities 40 — 40 — Interest expense, net (8,053 ) (8,543 ) (16,109 ) (17,096 ) Depreciation expense (8,713 ) (18,346 ) (17,402 ) (40,042 ) Net income (loss) $ 1,969 $ (4,776 ) $ 6,116 $ (13,974 ) Company's share of net income (loss) $ 1,041 $ 730 $ 2,746 $ 202 Amortization of excess investment and other (529 ) (533 ) (1,059 ) (1,065 ) Equity in income (loss) from unconsolidated real estate investments $ 512 $ 197 $ 1,687 $ (863 ) Expensed Transaction, Development and Other Pursuit Costs 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 non-recoverable capitalized pre-development costs are expensed. The Company expensed costs related to development pursuits not yet considered probable for development and the abandonment of Development Rights, 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 $388,000 and $1,766,000 for the three months ended June 30, 2020 and 2019 , respectively, and $3,722,000 and $2,388,000 for the six months ended June 30, 2020 and 2019 , 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. Casualty and Impairment of Long-Lived Assets In the Company's evaluation of its real estate portfolio for impairment, as discussed below, it considered the impact of the COVID-19 pandemic and did not identify any indicators of impairment as a result. 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, 2020 and 2019 . The Company evaluates its for-sale condominium inventory for potential indicators of impairment, considering whether the fair value of the for-sale condominium units exceeds the carrying value. For-sale condominium inventory is stated at cost, unless the carrying amount of the inventory is not recoverable when compared to the fair value. The Company determines the fair value of its for-sale condominium inventory as the estimated sales price less direct costs to sell. For the three and six months ended June 30, 2020 , the Company did not identify any indicators of impairment for its for-sale condominium inventory. 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, 2020 and 2019 , 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 for any of the Company's investments in unconsolidated real estate entities, or impairments recognized by those entities, during the three and six months ended June 30, 2020 and 2019 . |
Real Estate Disposition Activit
Real Estate Disposition Activities | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 : • In January 2020, the Company sold Avalon Shelton, located in Shelton, CT, containing 250 apartment homes for $64,750,000 . The Company's gain on disposition was $24,413,000 , reported in gain on sale of communities on the accompanying Condensed Consolidated Statements of Comprehensive Income. • In May 2020, the Company sold Avalon Tinton Falls, located in Tinton Falls, NJ, containing 216 apartment homes for $64,900,000 . The Company's gain on disposition was $35,297,000 , reported in gain on sale of communities on the accompanying Condensed Consolidated Statements of Comprehensive Income. At June 30, 2020 , the Company had no real estate assets that qualified as held for sale. The Park Loggia The Park Loggia, located in New York, NY, contains 172 for-sale residential condominiums and 67,000 square feet of retail space. During the three and six months ended June 30, 2020 , the Company sold 16 and 52 residential condominiums at The Park Loggia, for gross proceeds of $61,207,000 and $166,814,000 , respectively, resulting in a gain in accordance with GAAP of $2,544,000 and $7,447,000 , respectively, included in gain on for-sale condominiums, net of marketing and administrative costs, on the accompanying Condensed Consolidated Statements of Comprehensive Income. The Company incurred $1,196,000 and $945,000 during the three months ended June 30, 2020 and 2019 , respectively, and $2,639,000 and $1,418,000 during the six months ended June 30, 2020 and 2019 , respectively, in marketing and administrative costs associated with The Park Loggia, included in gain on for-sale condominiums, net of marketing and administrative costs, on the accompanying Condensed Consolidated Statements of Comprehensive Income. As of June 30, 2020 , the for-sale residential condominiums have an aggregate carrying value of $311,236,000 , presented as for-sale condominium inventory on the accompanying Condensed Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
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 ground leases expiring between October 2026 and March 2142. The ground leases for 10 of 11 of the apartment communities and the rest of the ground leases are accounted for as operating leases, with rental expense recognized on a straight-line basis over the lease term. In addition, the Company is party to 14 leases for its corporate and regional offices with varying terms through 2031, all of which are accounted for as operating leases. As of June 30, 2020 and December 31, 2019 , the Company has total operating lease assets of $138,113,000 and $103,063,000 , respectively, and total operating lease obligations of $163,321,000 and $120,261,000 , respectively, 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 $4,240,000 and $3,568,000 for the three months ended June 30, 2020 and 2019 , respectively, and $8,157,000 and $7,105,000 for the six months ended June 30, 2020 and 2019 , respectively, related to operating leases. The Company has one apartment community located on land subject to a ground lease as well as two leases for portions of parking garages, one adjacent to an apartment community and one adjacent to a community under development, that are accounted for as finance leases. As of June 30, 2020 and December 31, 2019 , the Company has total finance lease assets of $21,791,000 and $21,898,000 , respectively, and total finance lease obligations of $20,186,000 and $20,207,000 , respectively, reported as components of right of use lease assets and lease liabilities, respectively, on the accompanying Condensed Consolidated Balance Sheets. |
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 ground leases expiring between October 2026 and March 2142. The ground leases for 10 of 11 of the apartment communities and the rest of the ground leases are accounted for as operating leases, with rental expense recognized on a straight-line basis over the lease term. In addition, the Company is party to 14 leases for its corporate and regional offices with varying terms through 2031, all of which are accounted for as operating leases. As of June 30, 2020 and December 31, 2019 , the Company has total operating lease assets of $138,113,000 and $103,063,000 , respectively, and total operating lease obligations of $163,321,000 and $120,261,000 , respectively, 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 $4,240,000 and $3,568,000 for the three months ended June 30, 2020 and 2019 , respectively, and $8,157,000 and $7,105,000 for the six months ended June 30, 2020 and 2019 , respectively, related to operating leases. The Company has one apartment community located on land subject to a ground lease as well as two leases for portions of parking garages, one adjacent to an apartment community and one adjacent to a community under development, that are accounted for as finance leases. As of June 30, 2020 and December 31, 2019 , the Company has total finance lease assets of $21,791,000 and $21,898,000 , respectively, and total finance lease obligations of $20,186,000 and $20,207,000 , respectively, reported as components of right of use lease assets and lease liabilities, respectively, on the accompanying Condensed Consolidated Balance Sheets. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2020 | |
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, gain on for-sale condominiums, net of marketing and administrative costs 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, 2020 and 2019 is as follows (dollars in thousands): For the three months ended For the six months ended 6/30/2020 6/30/2019 6/30/2020 6/30/2019 Net income $ 170,869 $ 168,305 $ 338,875 $ 338,723 Indirect operating expenses, net of corporate income 23,407 23,018 46,206 42,740 Expensed transaction, development and other pursuit costs, net of recoveries 388 1,766 3,722 2,388 Interest expense, net 53,399 50,010 109,313 97,902 Loss on extinguishment of debt, net 268 229 9,438 509 General and administrative expense 15,573 18,965 32,893 32,671 Equity in (income) loss of unconsolidated real estate entities (512 ) (197 ) (1,687 ) 863 Depreciation expense 176,249 162,693 354,160 324,749 Income tax benefit (1,133 ) — (1,042 ) (6 ) Gain on sale of communities (35,295 ) (20,530 ) (59,731 ) (35,365 ) Gain on other real estate transactions, net (156 ) (34 ) (199 ) (300 ) Gain on for-sale condominiums, net of marketing and administrative costs (1,348 ) 945 (4,808 ) 1,418 Net operating income from real estate assets sold or held for sale (336 ) (5,075 ) (1,232 ) (11,281 ) Net operating income $ 401,373 $ 400,095 $ 825,908 $ 795,011 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 6/30/2020 6/30/2019 6/30/2020 6/30/2019 Rental income from real estate assets sold or held for sale $ 579 $ 8,712 $ 2,004 $ 19,352 Operating expenses from real estate assets sold or held for sale (243 ) (3,637 ) (772 ) (8,071 ) Net operating income from real estate assets sold or held for sale $ 336 $ 5,075 $ 1,232 $ 11,281 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, 2020 . Segment information for the three and six months ended June 30, 2020 and 2019 has been adjusted to exclude the real estate assets that were sold from January 1, 2019 through June 30, 2020 , or otherwise qualify as held for sale as of June 30, 2020 , as described in Note 6, "Real Estate Disposition Activities." For the three months ended For the six months ended Total NOI Total NOI Gross real estate (1) For the period ended June 30, 2020 Established New England $ 79,729 $ 52,835 $ 161,398 $ 106,515 $ 2,768,509 Metro NY/NJ 113,942 78,080 234,673 162,564 4,339,998 Mid-Atlantic 87,970 61,644 179,687 127,953 3,552,832 Pacific Northwest 27,678 19,626 56,414 40,464 992,976 Northern California 101,263 77,844 205,623 158,295 3,271,293 Southern California 107,091 74,601 221,901 157,056 4,147,828 Expansion Markets 5,858 3,561 11,791 6,989 320,683 Total Established 523,531 368,191 1,071,487 759,836 19,394,119 Other Stabilized 34,677 23,108 70,167 46,604 1,593,551 Development / Redevelopment (2) 16,692 10,074 32,465 19,468 2,346,168 Land Held for Development N/A N/A N/A N/A 39,829 Non-allocated (3) 926 N/A 1,933 N/A 416,134 Total $ 575,826 $ 401,373 $ 1,176,052 $ 825,908 $ 23,789,801 For the period ended June 30, 2019 Established New England $ 79,566 $ 52,474 $ 158,254 $ 104,557 $ 2,728,480 Metro NY/NJ 120,427 84,420 238,804 167,404 4,316,859 Mid-Atlantic 90,115 63,241 178,486 126,157 3,517,332 Pacific Northwest 28,224 20,605 56,026 40,815 987,121 Northern California 102,435 78,093 203,695 156,808 3,252,502 Southern California 112,821 80,180 224,287 160,096 4,106,419 Expansion Markets 5,917 3,403 11,783 6,916 319,695 Total Established 539,505 382,416 1,071,335 762,753 19,228,408 Other Stabilized 25,522 17,237 47,548 31,966 1,257,613 Development / Redevelopment (2) 2,410 442 2,959 292 1,589,009 Land Held for Development N/A N/A N/A N/A 18,606 Non-allocated (3) 1,114 N/A 2,252 N/A 539,073 Total $ 568,551 $ 400,095 $ 1,124,094 $ 795,011 $ 22,632,709 __________________________________ (1) Does not include gross real estate either sold or classified as held for sale subsequent to June 30, 2019 of $209,170 . (2) The Company had no Redevelopment Communities for the three and six months ended June 30, 2020 and 2019 . (3) Revenue represents third-party management, accounting, and developer fees and miscellaneous income which are not allocated to a reportable segment. Gross real estate includes the for-sale residential condominiums at The Park Loggia, as discussed in Note 6, "Real Estate Disposition Activities." |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2020 | |
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. Information with respect to performance awards granted is as follows: Performance awards Weighted average grant date fair value per award Outstanding at December 31, 2019 253,432 $ 176.27 Granted (1) 76,164 238.86 Change in awards based on performance (2) 18,112 177.26 Converted to restricted stock (96,317 ) 177.26 Forfeited (8,004 ) 183.45 Outstanding at June 30, 2020 243,387 $ 195.31 __________________________________ (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 38,314 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 37,850 performance awards. (2) Represents the change in the number of performance awards earned based on 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 2020 for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows: 2020 Dividend yield 2.8% Estimated volatility over the life of the plan (1) 11.1% - 15.5% Risk free rate 1.45% - 1.62% Estimated performance award value based on total shareholder return measure $254.72 __________________________________ (1) Estimated volatility of the life of the plan is using 50% historical volatility and 50% implied volatility. For the portion of the performance awards granted in 2020 for which achievement will be determined by using financial metrics, the compensation cost was based on a grant date value of $225.59 , 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, 2019 148,326 $ 181.29 163,111 Granted - restricted stock shares 68,209 222.12 96,317 Vested - restricted stock shares (76,893 ) 178.57 (109,758 ) Forfeited (3,456 ) 191.73 (594 ) Outstanding at June 30, 2020 136,186 $ 203.00 149,076 Total employee stock-based compensation cost recognized in income was $11,624,000 and $13,129,000 for the six months ended June 30, 2020 and 2019 , respectively, and total capitalized stock-based compensation cost was $6,174,000 and $5,374,000 for the six months ended June 30, 2020 and 2019 , respectively. At June 30, 2020 , there was a total unrecognized compensation cost of $39,406,000 for unvested restricted stock and performance awards, which does not include forfeitures, and is expected to be recognized over a weighted average period of 2.1 years. |
Related Party Arrangements
Related Party Arrangements | 6 Months Ended |
Jun. 30, 2020 | |
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 $926,000 and $1,114,000 for the three months ended June 30, 2020 and 2019 , respectively and $1,933,000 and $2,252,000 for the six months ended June 30, 2020 and 2019 , respectively. In addition, the Company had outstanding receivables associated with its property and construction management role of $1,795,000 and $3,924,000 as of June 30, 2020 and December 31, 2019 , respectively. Director Compensation The Company recorded non-employee director compensation expense relating to restricted stock grants and deferred stock units in the amount of $446,000 and $405,000 in the three months ended June 30, 2020 and 2019 , respectively, and $901,000 and $830,000 in the six months ended June 30, 2020 and 2019 , respectively, as a component of general and administrative expense. Deferred compensation relating to these restricted stock grants and deferred stock units to non-employee directors was $1,389,000 and $594,000 on June 30, 2020 and December 31, 2019 , 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, 2020 | |
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, 2020 , 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, 2020 (dollars in thousands): Non-designated Cash Flow Interest Rate Swaps Notional balance $ 441,368 $ 100,000 Weighted average interest rate (1) 1.7 % N/A Weighted average swapped/capped interest rate 6.5 % 0.7 % Earliest maturity date January 2021 May 2021 Latest maturity date November 2021 May 2021 ____________________________________ (1) For interest rate caps, represents the weighted average interest rate on the hedged debt. The following activity occurred during the six months ended June 30, 2020 : • The Company settled an aggregate of $600,000,000 of forward interest rate swap agreements, making aggregate payments of $25,135,000 . Of the positions settled by the Company, $250,000,000 were forward interest swaps that the Company had entered into during 2020. ◦ In conjunction with the issuance of the Company's $700,000,000 unsecured notes due 2030 in February 2020, the Company settled $350,000,000 of forward interest rate swap agreements designated as cash flow hedges of the interest rate variability on the issuance of the unsecured notes, making a payment of $20,314,000 . ◦ In conjunction with the issuance of the Company's $600,000,000 unsecured notes due 2031 in May 2020, the Company settled $250,000,000 of forward interest rate swap agreements designated as cash flow hedges of the interest rate variability on the issuance of the unsecured notes, making a payment of $4,821,000 . The Company has deferred these amounts in accumulated other comprehensive loss on the accompanying Condensed Consolidated Balance Sheets, and is recognizing the impact as a component of interest expense, net, over the term of the respective hedged debt. • The Company entered into an additional $100,000,000 of new forward interest rate swap agreements executed to reduce the impact of variability of interest rates on a portion of the Company's expected debt issuance activity in 2021. At the 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 two derivatives designated as cash flow hedges and five derivatives not designated as hedges at June 30, 2020 . Fair value changes for derivatives not in qualifying hedge relationships for the three and six months ended June 30, 2020 and 2019 were not material. During the six months ended June 30, 2020 , the Company deferred $19,064,000 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 6/30/2020 6/30/2019 6/30/2020 6/30/2019 Cash flow hedge losses reclassified to earnings $ 2,301 $ 1,611 $ 4,250 $ 3,079 The Company anticipates reclassifying approximately $9,467,000 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, 2020 and 2019 . 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 a DownREIT which provides 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 agreement, 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 DownREIT 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): 6/30/2020 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Cash Flow Hedges Interest Rate Caps $ 5 $ — $ 5 $ — Interest Rate Swaps - Assets 178 — 178 — Interest Rate Swaps - Liabilities (98 ) — (98 ) — Puts (121 ) — — (121 ) DownREIT units (1,160 ) (1,160 ) — — Indebtedness Fixed rate unsecured notes (7,247,946 ) (7,247,946 ) — — Secured notes and variable rate unsecured indebtedness (1,128,029 ) — (1,128,029 ) — Total $ (8,377,171 ) $ (7,249,106 ) $ (1,127,944 ) $ (121 ) 12/31/2019 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Cash Flow Hedges Interest Rate Swaps - Assets $ 388 $ — $ 388 $ — Interest Rate Swaps - Liabilities (6,379 ) — (6,379 ) — Puts (206 ) — — (206 ) DownREIT units (1,573 ) (1,573 ) — — Indebtedness Fixed rate unsecured notes (6,197,771 ) (6,197,771 ) — — Secured notes and variable rate unsecured indebtedness (1,398,147 ) — (1,398,147 ) — Total $ (7,603,688 ) $ (6,199,344 ) $ (1,404,138 ) $ (206 ) |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
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 2020, the Company entered into a joint venture which will develop, own and operate AVA Arts District. AVA Arts District is expected to be a 475 apartment home community in Los Angeles, CA, that will be developed for a projected total capitalized cost to the joint venture of $279,000,000 . The Company owns a 25.0% interest in the venture, and the venture partner owns the remaining 75.0% interest. The venture expects to obtain a $167,000,000 construction loan to fund the development of AVA Arts District. The Company's total expected equity investment is approximately $28,000,000 , of which $13,000,000 has already been spent. |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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 in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion markets in Southeast Florida and Denver, Colorado (the "Expansion Markets"). At June 30, 2020 , the Company owned or held a direct or indirect ownership interest in 276 operating apartment communities containing 80,182 apartment homes in 11 states and the District of Columbia. In addition, the Company owned or held a direct or indirect ownership interest in 19 communities under development that are expected to contain an aggregate of 6,198 apartment homes when completed, as well as The Park Loggia, which contains 172 for-sale residential condominiums, of which 52 have been sold as of June 30, 2020 , and 67,000 square feet of retail space, of which 64% has been leased as of June 30, 2020 . 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 9,786 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 2019 Annual Report on Form 10-K. The results of operations for the three and six months ended June 30, 2020 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 6/30/2020 6/30/2019 6/30/2020 6/30/2019 Basic and diluted shares outstanding Weighted average common shares - basic 140,450,744 139,113,390 140,413,857 138,724,479 Weighted average DownREIT units outstanding 7,500 7,500 7,500 7,500 Effect of dilutive securities 279,916 497,341 330,974 495,397 Weighted average common shares - diluted 140,738,160 139,618,231 140,752,331 139,227,376 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 170,828 $ 168,281 $ 338,799 $ 338,647 Net income allocated to unvested restricted shares (390 ) (435 ) (817 ) (935 ) Net income attributable to common stockholders, adjusted $ 170,438 $ 167,846 $ 337,982 $ 337,712 Weighted average common shares - basic 140,450,744 139,113,390 140,413,857 138,724,479 Earnings per common share - basic $ 1.21 $ 1.21 $ 2.41 $ 2.43 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 170,828 $ 168,281 $ 338,799 $ 338,647 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 12 12 24 23 Adjusted net income attributable to common stockholders $ 170,840 $ 168,293 $ 338,823 $ 338,670 Weighted average common shares - diluted 140,738,160 139,618,231 140,752,331 139,227,376 Earnings per common share - diluted $ 1.21 $ 1.21 $ 2.41 $ 2.43 All options to purchase shares of common stock outstanding as of June 30, 2020 and 2019 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 |
For-Sale Condominium Inventory | For-Sale Condominium Inventory The Company presents for-sale condominium inventory at historical cost and evaluates the condominium inventory for impairment when potential indicators exist, as further discussed in Note 6, "Real Estate Disposition Activities." |
Lessee Considerations | Lessee Considerations The Company assesses 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’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. Lease payments included in the lease liability include only payments that depend on an index or rate. For leases that have options to extend the term or terminate the lease early, the Company only factored the impact of such 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 on a lease by lease basis using the Company’s actual borrowing rates as well as indicative market pricing for longer term rates and taking into consideration the remaining term of each of the lease agreements. |
Lessor Considerations | Lessor Considerations The Company evaluates leases in which it is the lessor, which are composed of residential and retail leases at its apartment communities, and determined these leases 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, which, for residential leases, 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, it is reasonably certain that the lessee will exercise this option. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued and Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This ASU requires entities to estimate a lifetime expected credit loss for most financial assets, including (i) trade and other receivables, (ii) other long term financings including available for sale and held-to-maturity debt securities and (iii) loans. Subsequently, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which amends the scope of ASU 2016-13 and clarified that receivables arising from operating leases are not within the scope of the standard and should continue to be accounted for in accordance with the leases standard (Topic 842). The new standard was adopted on January 1, 2020 and does not have a material effect on the Company’s financial position or results of operations. |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 6/30/2020 6/30/2019 6/30/2020 6/30/2019 Basic and diluted shares outstanding Weighted average common shares - basic 140,450,744 139,113,390 140,413,857 138,724,479 Weighted average DownREIT units outstanding 7,500 7,500 7,500 7,500 Effect of dilutive securities 279,916 497,341 330,974 495,397 Weighted average common shares - diluted 140,738,160 139,618,231 140,752,331 139,227,376 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 170,828 $ 168,281 $ 338,799 $ 338,647 Net income allocated to unvested restricted shares (390 ) (435 ) (817 ) (935 ) Net income attributable to common stockholders, adjusted $ 170,438 $ 167,846 $ 337,982 $ 337,712 Weighted average common shares - basic 140,450,744 139,113,390 140,413,857 138,724,479 Earnings per common share - basic $ 1.21 $ 1.21 $ 2.41 $ 2.43 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 170,828 $ 168,281 $ 338,799 $ 338,647 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 12 12 24 23 Adjusted net income attributable to common stockholders $ 170,840 $ 168,293 $ 338,823 $ 338,670 Weighted average common shares - diluted 140,738,160 139,618,231 140,752,331 139,227,376 Earnings per common share - diluted $ 1.21 $ 1.21 $ 2.41 $ 2.43 |
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, 2020 and 2019 . Segment information for total revenue has been adjusted to exclude the real estate assets that were sold from January 1, 2019 through June 30, 2020 , or otherwise qualify as held for sale as of June 30, 2020 , as described in Note 6, "Real Estate Disposition Activities" (dollars in thousands): For the three months ended Established Other Development/ Non- Total For the period ended June 30, 2020 Management, development and other fees $ — $ — $ — $ 926 $ 926 Rental and non-rental related income (3) 1,870 317 295 — 2,482 Total non-lease revenue (4) 1,870 317 295 926 3,408 Lease income (5) 521,558 34,360 16,397 — 572,315 Business interruption insurance proceeds 103 — — — 103 Total revenue $ 523,531 $ 34,677 $ 16,692 $ 926 $ 575,826 For the period ended June 30, 2019 Management, development and other fees $ — $ — $ — $ 1,114 $ 1,114 Rental and non-rental related income (3) 2,154 153 51 — 2,358 Total non-lease revenue (4) 2,154 153 51 1,114 3,472 Lease income (5) 536,916 25,369 2,359 — 564,644 Business interruption insurance proceeds 435 — — — 435 Total revenue $ 539,505 $ 25,522 $ 2,410 $ 1,114 $ 568,551 For the six months ended Established Other Development/ Non- Total For the period ended June 30, 2020 Management, development and other fees $ — $ — $ — $ 1,933 $ 1,933 Rental and non-rental related income (3) 3,478 793 527 — 4,798 Total non-lease revenue (4) 3,478 793 527 1,933 6,731 Lease income (5) 1,067,906 69,374 31,938 — 1,169,218 Business interruption insurance proceeds 103 — — — 103 Total revenue $ 1,071,487 $ 70,167 $ 32,465 $ 1,933 $ 1,176,052 For the period ended June 30, 2019 Management, development and other fees $ — $ — $ — $ 2,252 $ 2,252 Rental and non-rental related income (3) 3,986 634 67 — 4,687 Total non-lease revenue (4) 3,986 634 67 2,252 6,939 Lease income (5) 1,066,742 46,914 2,892 — 1,116,548 Business interruption insurance proceeds 607 — — — 607 Total revenue $ 1,071,335 $ 47,548 $ 2,959 $ 2,252 $ 1,124,094 __________________________________ (1) The Company had no Redevelopment Communities for the three and six months ended June 30, 2020 and 2019 . (2) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. (3) Amounts include revenue streams related to leasing 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. (4) Represents all revenue accounted for under ASU 2014-09. (5) Amounts include all revenue streams derived from residential and retail rental income and other lease income, which are accounted for under ASC 842. |
Mortgage Notes Payable, Unsec_2
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 and December 31, 2019 , as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, "Real Estate Disposition Activities"). 6/30/2020 12/31/2019 Fixed rate unsecured notes (1) $ 6,500,000 $ 5,850,000 Variable rate unsecured notes (1) — 300,000 Term Loans (1) 250,000 250,000 Fixed rate mortgage notes payable - conventional and tax-exempt (2) 478,070 479,221 Variable rate mortgage notes payable - conventional and tax-exempt (2) 471,450 476,150 Total mortgage notes payable and unsecured notes and Term Loans 7,699,520 7,355,371 Credit Facility — — Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility $ 7,699,520 $ 7,355,371 _____________________________________ (1) Balances at June 30, 2020 and December 31, 2019 exclude $11,183 and $8,610 , respectively, of debt discount, and $40,379 and $32,742 , respectively, of deferred financing costs, as reflected in unsecured notes, net on the accompanying Condensed Consolidated Balance Sheets. (2) Balances at June 30, 2020 and December 31, 2019 exclude $14,618 and $14,464 , respectively, of debt discount, and $3,130 and $3,265 , respectively, of deferred financing costs, as reflected in mortgage notes payable, net 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, 2020 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 2020 $ 2,756 $ 67,904 $ — N/A 2021 9,304 27,844 — N/A 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 14,980 236,100 400,000 3.350 % 2028 20,607 — 450,000 3.200 % 2029 11,742 66,250 450,000 3.300 % Thereafter 189,162 244,584 700,000 2.300 % 600,000 2.450 % 350,000 3.900 % 300,000 4.150 % 300,000 4.350 % $ 306,838 $ 642,682 $ 6,750,000 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Summary of changes in equity | The following summarizes the changes in equity for the six months ended June 30, 2020 (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, 2019 $ 1,406 $ 10,736,733 $ 282,913 $ (31,503 ) $ 10,989,549 $ 649 $ 10,990,198 Net income attributable to common stockholders — — 167,971 — 167,971 — 167,971 Loss on cash flow hedges, net — — — (17,603 ) (17,603 ) — (17,603 ) Cash flow hedge losses reclassified to earnings — — — 1,949 1,949 — 1,949 Change in redemption value of redeemable noncontrolling interest — — 471 — 471 — 471 Noncontrolling interests income allocation — — — — — (35 ) (35 ) Dividends declared to common stockholders ($1.59 per share) — — (224,083 ) — (224,083 ) — (224,083 ) Issuance of common stock, net of withholdings 1 (12,492 ) (1,616 ) — (14,107 ) — (14,107 ) Amortization of deferred compensation — 7,781 — — 7,781 — 7,781 Balance at March 31, 2020 $ 1,407 $ 10,732,022 $ 225,656 $ (47,157 ) $ 10,911,928 $ 614 $ 10,912,542 Net income attributable to common stockholders — — 170,828 — 170,828 — 170,828 Loss on cash flow hedges, net — — — (1,461 ) (1,461 ) — (1,461 ) Cash flow hedge losses reclassified to earnings — — — 2,301 2,301 — 2,301 Change in redemption value of redeemable noncontrolling interest — — (146 ) — (146 ) — (146 ) Noncontrolling interests income allocation — — — — — 1 1 Dividends declared to common stockholders ($1.59 per share) — — (224,172 ) — (224,172 ) — (224,172 ) Issuance of common stock, net of withholdings — 1,050 138 — 1,188 — 1,188 Amortization of deferred compensation — 9,724 — — 9,724 — 9,724 Balance at June 30, 2020 $ 1,407 $ 10,742,796 $ 172,304 $ (46,317 ) $ 10,870,190 $ 615 $ 10,870,805 The following summarizes the changes in equity for the six months ended June 30, 2019 (dollars in thousands): Common Additional Accumulated Accumulated Total AvalonBay stockholder's equity Noncontrolling interests Total 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 interests income allocation — — — — — 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 |
Investments in Real Estate En_2
Investments in Real Estate Entities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of financial information of equity method investments | 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): 6/30/2020 12/31/2019 (unaudited) Assets: Real estate, net $ 1,203,277 $ 1,204,470 Other assets 198,997 196,488 Total assets $ 1,402,274 $ 1,400,958 Liabilities and partners' capital: Mortgage notes payable, net (1) $ 780,217 $ 782,257 Other liabilities 154,881 157,379 Partners' capital 467,176 461,322 Total liabilities and partners' capital $ 1,402,274 $ 1,400,958 _________________________________ (1) The Company has not guaranteed the debt, nor does the Company have any obligation to fund this debt should the unconsolidated entity be unable to do so. 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 6/30/2020 6/30/2019 6/30/2020 6/30/2019 (unaudited) (unaudited) Rental and other income $ 30,427 $ 35,998 $ 63,499 $ 71,253 Operating and other expenses (11,732 ) (13,885 ) (23,912 ) (28,089 ) Gain on sale of communities 40 — 40 — Interest expense, net (8,053 ) (8,543 ) (16,109 ) (17,096 ) Depreciation expense (8,713 ) (18,346 ) (17,402 ) (40,042 ) Net income (loss) $ 1,969 $ (4,776 ) $ 6,116 $ (13,974 ) Company's share of net income (loss) $ 1,041 $ 730 $ 2,746 $ 202 Amortization of excess investment and other (529 ) (533 ) (1,059 ) (1,065 ) Equity in income (loss) from unconsolidated real estate investments $ 512 $ 197 $ 1,687 $ (863 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 and 2019 is as follows (dollars in thousands): For the three months ended For the six months ended 6/30/2020 6/30/2019 6/30/2020 6/30/2019 Net income $ 170,869 $ 168,305 $ 338,875 $ 338,723 Indirect operating expenses, net of corporate income 23,407 23,018 46,206 42,740 Expensed transaction, development and other pursuit costs, net of recoveries 388 1,766 3,722 2,388 Interest expense, net 53,399 50,010 109,313 97,902 Loss on extinguishment of debt, net 268 229 9,438 509 General and administrative expense 15,573 18,965 32,893 32,671 Equity in (income) loss of unconsolidated real estate entities (512 ) (197 ) (1,687 ) 863 Depreciation expense 176,249 162,693 354,160 324,749 Income tax benefit (1,133 ) — (1,042 ) (6 ) Gain on sale of communities (35,295 ) (20,530 ) (59,731 ) (35,365 ) Gain on other real estate transactions, net (156 ) (34 ) (199 ) (300 ) Gain on for-sale condominiums, net of marketing and administrative costs (1,348 ) 945 (4,808 ) 1,418 Net operating income from real estate assets sold or held for sale (336 ) (5,075 ) (1,232 ) (11,281 ) Net operating income $ 401,373 $ 400,095 $ 825,908 $ 795,011 |
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 6/30/2020 6/30/2019 6/30/2020 6/30/2019 Rental income from real estate assets sold or held for sale $ 579 $ 8,712 $ 2,004 $ 19,352 Operating expenses from real estate assets sold or held for sale (243 ) (3,637 ) (772 ) (8,071 ) Net operating income from real estate assets sold or held for sale $ 336 $ 5,075 $ 1,232 $ 11,281 |
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, 2020 Established New England $ 79,729 $ 52,835 $ 161,398 $ 106,515 $ 2,768,509 Metro NY/NJ 113,942 78,080 234,673 162,564 4,339,998 Mid-Atlantic 87,970 61,644 179,687 127,953 3,552,832 Pacific Northwest 27,678 19,626 56,414 40,464 992,976 Northern California 101,263 77,844 205,623 158,295 3,271,293 Southern California 107,091 74,601 221,901 157,056 4,147,828 Expansion Markets 5,858 3,561 11,791 6,989 320,683 Total Established 523,531 368,191 1,071,487 759,836 19,394,119 Other Stabilized 34,677 23,108 70,167 46,604 1,593,551 Development / Redevelopment (2) 16,692 10,074 32,465 19,468 2,346,168 Land Held for Development N/A N/A N/A N/A 39,829 Non-allocated (3) 926 N/A 1,933 N/A 416,134 Total $ 575,826 $ 401,373 $ 1,176,052 $ 825,908 $ 23,789,801 For the period ended June 30, 2019 Established New England $ 79,566 $ 52,474 $ 158,254 $ 104,557 $ 2,728,480 Metro NY/NJ 120,427 84,420 238,804 167,404 4,316,859 Mid-Atlantic 90,115 63,241 178,486 126,157 3,517,332 Pacific Northwest 28,224 20,605 56,026 40,815 987,121 Northern California 102,435 78,093 203,695 156,808 3,252,502 Southern California 112,821 80,180 224,287 160,096 4,106,419 Expansion Markets 5,917 3,403 11,783 6,916 319,695 Total Established 539,505 382,416 1,071,335 762,753 19,228,408 Other Stabilized 25,522 17,237 47,548 31,966 1,257,613 Development / Redevelopment (2) 2,410 442 2,959 292 1,589,009 Land Held for Development N/A N/A N/A N/A 18,606 Non-allocated (3) 1,114 N/A 2,252 N/A 539,073 Total $ 568,551 $ 400,095 $ 1,124,094 $ 795,011 $ 22,632,709 __________________________________ (1) Does not include gross real estate either sold or classified as held for sale subsequent to June 30, 2019 of $209,170 . (2) The Company had no Redevelopment Communities for the three and six months ended June 30, 2020 and 2019 . (3) Revenue represents third-party management, accounting, and developer fees and miscellaneous income which are not allocated to a reportable segment. Gross real estate includes the for-sale residential condominiums at The Park Loggia, as discussed in Note 6, "Real Estate Disposition Activities." |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
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, 2019 253,432 $ 176.27 Granted (1) 76,164 238.86 Change in awards based on performance (2) 18,112 177.26 Converted to restricted stock (96,317 ) 177.26 Forfeited (8,004 ) 183.45 Outstanding at June 30, 2020 243,387 $ 195.31 __________________________________ (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 38,314 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 37,850 performance awards. (2) Represents the change in the number of performance awards earned based on 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 2020 for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows: 2020 Dividend yield 2.8% Estimated volatility over the life of the plan (1) 11.1% - 15.5% Risk free rate 1.45% - 1.62% Estimated performance award value based on total shareholder return measure $254.72 __________________________________ (1) Estimated volatility of 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, 2019 148,326 $ 181.29 163,111 Granted - restricted stock shares 68,209 222.12 96,317 Vested - restricted stock shares (76,893 ) 178.57 (109,758 ) Forfeited (3,456 ) 191.73 (594 ) Outstanding at June 30, 2020 136,186 $ 203.00 149,076 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 (dollars in thousands): Non-designated Cash Flow Interest Rate Swaps Notional balance $ 441,368 $ 100,000 Weighted average interest rate (1) 1.7 % N/A Weighted average swapped/capped interest rate 6.5 % 0.7 % Earliest maturity date January 2021 May 2021 Latest maturity date November 2021 May 2021 ____________________________________ (1) For interest rate caps, 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 6/30/2020 6/30/2019 6/30/2020 6/30/2019 Cash flow hedge losses reclassified to earnings $ 2,301 $ 1,611 $ 4,250 $ 3,079 |
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): 6/30/2020 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Cash Flow Hedges Interest Rate Caps $ 5 $ — $ 5 $ — Interest Rate Swaps - Assets 178 — 178 — Interest Rate Swaps - Liabilities (98 ) — (98 ) — Puts (121 ) — — (121 ) DownREIT units (1,160 ) (1,160 ) — — Indebtedness Fixed rate unsecured notes (7,247,946 ) (7,247,946 ) — — Secured notes and variable rate unsecured indebtedness (1,128,029 ) — (1,128,029 ) — Total $ (8,377,171 ) $ (7,249,106 ) $ (1,127,944 ) $ (121 ) 12/31/2019 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Cash Flow Hedges Interest Rate Swaps - Assets $ 388 $ — $ 388 $ — Interest Rate Swaps - Liabilities (6,379 ) — (6,379 ) — Puts (206 ) — — (206 ) DownREIT units (1,573 ) (1,573 ) — — Indebtedness Fixed rate unsecured notes (6,197,771 ) (6,197,771 ) — — Secured notes and variable rate unsecured indebtedness (1,398,147 ) — (1,398,147 ) — Total $ (7,603,688 ) $ (6,199,344 ) $ (1,404,138 ) $ (206 ) |
Organization, Basis of Presen_4
Organization, Basis of Presentation and Significant Accounting Policies (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($)statecommunityhomeresidential_condominiumft² | Jun. 30, 2020USD ($)statecommunityhomeresidential_condominiumft² | |
Real Estate Properties [Line Items] | ||
Accounts Receivable, Credit Loss Expense (Reversal) | $ | $ 20,099 | $ 24,279 |
Number of operating apartment communities | community | 276 | 276 |
Number of apartment homes included in operating apartment communities owned | 80,182 | 80,182 |
Number of states where operating apartment communities owned are located | state | 11 | 11 |
Number of owned communities under construction | community | 19 | 19 |
Expected number of apartment homes under construction | 6,198 | 6,198 |
Number of Residential Condominium Units Sold | residential_condominium | 16 | 52 |
Communities under development rights | community | 28 | 28 |
Estimated number of apartment homes in communities to be developed | 9,786 | 9,786 |
The Park Loggia [Member] | ||
Real Estate Properties [Line Items] | ||
Number Of Residential Condominium Units | 172 | 172 |
Retail Square Feet | ft² | 67 | 67 |
Percent of Retail Square Feet Leased | 64.00% | 64.00% |
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, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic and diluted shares outstanding | ||||||
Weighted average common shares - basic (in shares) | 140,450,744 | 139,113,390 | 140,413,857 | 138,724,479 | ||
Weighted average DownREIT units outstanding (in shares) | 7,500 | 7,500 | 7,500 | 7,500 | ||
Effect of dilutive securities (in shares) | 279,916 | 497,341 | 330,974 | 495,397 | ||
Weighted average common shares - diluted (in shares) | 140,738,160 | 139,618,231 | 140,752,331 | 139,227,376 | ||
Calculation of Earnings per Share - basic | ||||||
Net income attributable to common stockholders | $ 170,828 | $ 167,971 | $ 168,281 | $ 170,366 | $ 338,799 | $ 338,647 |
Net income allocated to unvested restricted shares | (390) | (435) | (817) | (935) | ||
Net income attributable to common stockholders, adjusted | $ 170,438 | $ 167,846 | $ 337,982 | $ 337,712 | ||
Weighted average common shares - basic (in shares) | 140,450,744 | 139,113,390 | 140,413,857 | 138,724,479 | ||
Earnings per common share - basic (in dollars per share) | $ 1.21 | $ 1.21 | $ 2.41 | $ 2.43 | ||
Calculation of Earnings per Share - diluted | ||||||
Net income attributable to common stockholders | $ 170,828 | $ 167,971 | $ 168,281 | $ 170,366 | $ 338,799 | $ 338,647 |
Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships | 12 | 12 | 24 | 23 | ||
Adjusted net income attributable to common stockholders | $ 170,840 | $ 168,293 | $ 338,823 | $ 338,670 | ||
Weighted average common shares - diluted (in shares) | 140,738,160 | 139,618,231 | 140,752,331 | 139,227,376 | ||
Earnings per common share - diluted (in dollars per share) | $ 1.21 | $ 1.21 | $ 2.41 | $ 2.43 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | $ 926 | $ 1,114 | $ 1,933 | $ 2,252 |
Operating Lease, Lease Income | 575,479 | 576,149 | 1,176,123 | 1,141,194 |
Total revenue | 576,405 | 577,263 | 1,178,056 | 1,143,446 |
Operating Segments | Established Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 523,531 | 539,505 | 1,071,487 | 1,071,335 |
Operating Segments | Other Stabilized Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 34,677 | 25,522 | 70,167 | 47,548 |
Non-allocated | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 926 | 1,114 | 1,933 | 2,252 |
Continuing Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 3,408 | 3,472 | 6,731 | 6,939 |
Operating Lease, Lease Income | 572,315 | 564,644 | 1,169,218 | 1,116,548 |
Gain on Business Interruption Insurance Recovery | 103 | 435 | 103 | 607 |
Total revenue | 575,826 | 568,551 | 1,176,052 | 1,124,094 |
Continuing Operations | Management, development and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 926 | 1,114 | 1,933 | 2,252 |
Continuing Operations | Rental and non-rental related income | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 2,482 | 2,358 | 4,798 | 4,687 |
Continuing Operations | Operating Segments | Established Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 1,870 | 2,154 | 3,478 | 3,986 |
Operating Lease, Lease Income | 521,558 | 536,916 | 1,067,906 | 1,066,742 |
Gain on Business Interruption Insurance Recovery | 103 | 435 | 103 | 607 |
Total revenue | 523,531 | 539,505 | 1,071,487 | 1,071,335 |
Continuing Operations | Operating Segments | Other Stabilized Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 317 | 153 | 793 | 634 |
Operating Lease, Lease Income | 34,360 | 25,369 | 69,374 | 46,914 |
Gain on Business Interruption Insurance Recovery | 0 | 0 | 0 | 0 |
Total revenue | 34,677 | 25,522 | 70,167 | 47,548 |
Continuing Operations | Operating Segments | Development/ Redevelopment Communities (1) | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 295 | 51 | 527 | 67 |
Operating Lease, Lease Income | 16,397 | 2,359 | 31,938 | 2,892 |
Gain on Business Interruption Insurance Recovery | 0 | 0 | 0 | 0 |
Total revenue | 16,692 | 2,410 | 32,465 | 2,959 |
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 (1) | ||||
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 | 1,870 | 2,154 | 3,478 | 3,986 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Other Stabilized Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 317 | 153 | 793 | 634 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Development/ Redevelopment Communities (1) | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 295 | 51 | 527 | 67 |
Continuing Operations | Non-allocated | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 926 | 1,114 | 1,933 | 2,252 |
Operating Lease, Lease Income | 0 | 0 | 0 | 0 |
Gain on Business Interruption Insurance Recovery | 0 | 0 | 0 | 0 |
Total revenue | 926 | 1,114 | 1,933 | 2,252 |
Continuing Operations | Non-allocated | Management, development and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 926 | 1,114 | 1,933 | 2,252 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest Capitalized | ||||
Capitalized interest during the development and redevelopment of real estate assets | $ 11,019 | $ 17,127 | $ 22,517 | $ 34,716 |
Mortgage Notes Payable, Unsec_3
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Notes Payable, Unsecured Notes and Credit Facility | |||
Total mortgage notes payable and unsecured notes and Term Loans | $ 7,699,520,000 | $ 7,355,371,000 | |
Credit Facility | 0 | 0 | |
Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility | 7,699,520,000 | 7,355,371,000 | |
Unsecured notes | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Long-term Debt, Percentage Bearing Fixed Interest, Amount | 6,500,000,000 | 5,850,000,000 | |
Variable rate notes | 0 | 300,000,000 | |
Total mortgage notes payable and unsecured notes and Term Loans | 6,750,000,000 | ||
Amount of debt discount | 11,183,000 | 8,610,000 | |
Amount of deferred financing costs, net | 40,379,000 | 32,742,000 | |
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 | |||
Long-term Debt, Percentage Bearing Fixed Interest, Amount | 478,070,000 | 479,221,000 | |
Variable rate notes | 471,450,000 | 476,150,000 | |
Total mortgage notes payable and unsecured notes and Term Loans | 642,682,000 | ||
Amount of debt discount | 14,618,000 | 14,464,000 | |
Amount of deferred financing costs, net | 3,130,000 | 3,265,000 | |
Unsecured Notes 2.30 Percent [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Debt Instrument, Face Amount | $ 700,000,000 | ||
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 ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Repayments of Unsecured Debt | $ 958,680,000 | $ 0 | ||||
Gain (Loss) on Extinguishment of Debt | $ (268,000) | $ (229,000) | (9,438,000) | $ (509,000) | ||
Credit Facility | 0 | 0 | $ 0 | |||
Net carrying value of apartment communities and improved land parcels securing debt | 1,576,478,000 | 1,576,478,000 | ||||
Unsecured Notes 2.45 Percent [Member] | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Debt Instrument, Face Amount | 600,000,000 | 600,000,000 | ||||
Proceeds from Issuance of Debt | 593,430,000 | |||||
Secured Debt [Member] | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Long-term Debt, Percentage Bearing Fixed Interest, Amount | 478,070,000 | 478,070,000 | 479,221,000 | |||
Unsecured notes | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Long-term Debt, Percentage Bearing Fixed Interest, Amount | $ 6,500,000,000 | 6,500,000,000 | 5,850,000,000 | |||
Unsecured Notes 2.30 Percent [Member] | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Debt Instrument, Face Amount | $ 700,000,000 | |||||
Proceeds from Issuance of Debt | $ 694,701,000 | |||||
Unsecured Notes 2.30 Percent [Member] | Unsecured notes | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.30% | |||||
Floating Rate Unsecured Notes 300 Million [Member] | Unsecured notes | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Repayments of Unsecured Debt | 300,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | $ 268,000 | |||||
Notes Payable 3.625 Maturities 2020 and 2021 [Member] | Unsecured notes | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Gain (Loss) on Extinguishment of Debt | $ 9,170,000 | |||||
Unsecured Notes 2.45 Percent [Member] | Unsecured notes | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.45% | 2.45% | ||||
Notes Payable Maturities 2021 [Member] | Unsecured notes | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | |||||
Repayments of Unsecured Debt | $ 250,000,000 | |||||
Notes Payable Maturities 2020 [Member] | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.08% | |||||
Line of Credit [Member] | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Available borrowing capacity | $ 1,750,000,000 | $ 1,750,000,000 | ||||
Annual facility fee, percentage | 0.125% | |||||
Annual facility fee | $ 2,188,000 | |||||
Credit Facility | 0 | 0 | 0 | |||
Outstanding balance of letters of credit | $ 4,952,000 | $ 4,952,000 | 11,488,000 | |||
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) | 0.94% | 0.94% | ||||
Other Letter of Credit [Member] | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Outstanding balance of letters of credit | $ 32,322,000 | $ 32,322,000 | $ 24,939,000 | |||
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% | 3.90% | |||
Notes Payable Maturities 2027 | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.38% | |||||
Notes Payable Maturities 2027 | Unsecured notes | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.35% | 3.35% | ||||
Notes Payable 3.625 Maturities 2020 [Member] | Unsecured notes | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.625% | |||||
Repayments of Unsecured Debt | $ 400,000,000 | |||||
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) | 1.70% | 1.70% | 3.20% | |||
Avalon San Bruno III [Member] | Notes Payable Maturities 2027 | Secured Debt [Member] | ||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||
Long-term Debt, Percentage Bearing Fixed Interest, Amount | $ 51,000,000 |
Mortgage Notes Payable, Unsec_5
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details 3) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 7,699,520 | $ 7,355,371 | |
Notes Payable Maturities 2020 [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Stated interest rate of unsecured notes (as a percent) | 3.08% | ||
Notes Payable Maturities 2027 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Stated interest rate of unsecured notes (as a percent) | 2.38% | ||
Secured notes | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 306,838 | ||
Mortgage notes payable and unsecured notes | 642,682 | ||
Secured notes | Notes Payable Maturities 2020 [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 2,756 | ||
Mortgage notes payable and unsecured notes | 67,904 | ||
Secured notes | Notes Payable Maturities 2021 [Member] | |||
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 | 14,980 | ||
Mortgage notes payable and unsecured notes | 236,100 | ||
Secured notes | Notes Payable Maturities 2028 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 20,607 | ||
Secured notes | Notes Payable Maturities 2029 [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 11,742 | ||
Mortgage notes payable and unsecured notes | 66,250 | ||
Secured notes | Notes Payable Maturities Thereafter | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 189,162 | ||
Mortgage notes payable and unsecured notes | 244,584 | ||
Unsecured notes | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | 6,750,000 | ||
Unsecured notes | Notes Payable Maturities 2021 [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Stated interest rate of unsecured notes (as a percent) | 3.95% | ||
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 2.950 Maturities 2026 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 475,000 | ||
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 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% | ||
Unsecured notes | Notes Payable Maturities 2030 [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 700,000 | ||
Stated interest rate of unsecured notes (as a percent) | 2.30% | ||
Unsecured notes | Notes Payable Maturities 2031 [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 600,000 | ||
Stated interest rate of unsecured notes (as a percent) | 2.45% | ||
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% |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Class of Stock [Line Items] | ||||||
Issuance of common stock, net | $ 1,613 | $ 206,193 | ||||
Changes in equity | ||||||
Beginning Balance | $ 10,912,542 | $ 10,990,198 | $ 10,733,999 | $ 10,632,606 | 10,990,198 | 10,632,606 |
Net income attributable to common stockholders | 170,828 | 167,971 | 168,281 | 170,366 | 338,799 | 338,647 |
Loss on cash flow hedges | (1,461) | (17,603) | (2,888) | (7,231) | (19,064) | (10,119) |
Cash flow hedge losses reclassified to earnings | 2,301 | 1,949 | 1,611 | 1,468 | 4,250 | 3,079 |
Change in redemption value of redeemable noncontrolling interest | (146) | 471 | (45) | (224) | ||
Noncontrolling interests income allocation | 1 | (35) | 530 | |||
Dividends declared to common stockholders ($1.59 per share) | (224,172) | (224,083) | (212,549) | (212,166) | ||
Issuance of common stock, net of withholdings | 1,188 | (14,107) | 50,806 | 141,319 | ||
Amortization of deferred compensation | 9,724 | 7,781 | 10,785 | 7,861 | ||
Ending Balance | $ 10,870,805 | $ 10,912,542 | $ 10,750,530 | $ 10,733,999 | 10,870,805 | 10,750,530 |
Dividends declared to common stockholders (in dollars per share) | $ 1.59 | $ 1.59 | $ 1.52 | $ 1.52 | ||
Common stock | ||||||
Changes in equity | ||||||
Beginning Balance | $ 1,407 | $ 1,406 | $ 1,394 | $ 1,385 | 1,406 | 1,385 |
Issuance of common stock, net of withholdings | 0 | 1 | 3 | 9 | ||
Ending Balance | 1,407 | 1,407 | 1,397 | 1,394 | 1,407 | 1,397 |
Additional paid-in capital | ||||||
Changes in equity | ||||||
Beginning Balance | 10,732,022 | 10,736,733 | 10,457,651 | 10,306,588 | 10,736,733 | 10,306,588 |
Issuance of common stock, net of withholdings | 1,050 | (12,492) | 50,803 | 143,202 | ||
Amortization of deferred compensation | 9,724 | 7,781 | 10,785 | 7,861 | ||
Ending Balance | 10,742,796 | 10,732,022 | 10,519,239 | 10,457,651 | 10,742,796 | 10,519,239 |
Accumulated earnings less dividends | ||||||
Changes in equity | ||||||
Beginning Balance | 225,656 | 282,913 | 306,861 | 350,777 | 282,913 | 350,777 |
Net income attributable to common stockholders | 170,828 | 167,971 | 168,281 | 170,366 | ||
Change in redemption value of redeemable noncontrolling interest | (146) | 471 | (45) | (224) | 325 | (269) |
Dividends declared to common stockholders ($1.59 per share) | (224,172) | (224,083) | (212,549) | (212,166) | ||
Issuance of common stock, net of withholdings | 138 | (1,616) | 0 | (1,892) | ||
Ending Balance | 172,304 | 225,656 | 262,548 | 306,861 | 172,304 | 262,548 |
Accumulated other comprehensive loss | ||||||
Changes in equity | ||||||
Beginning Balance | (47,157) | (31,503) | (31,907) | (26,144) | (31,503) | (26,144) |
Loss on cash flow hedges | (1,461) | (17,603) | (2,888) | (7,231) | ||
Cash flow hedge losses reclassified to earnings | 2,301 | 1,949 | 1,611 | 1,468 | ||
Ending Balance | (46,317) | (47,157) | (33,184) | (31,907) | (46,317) | (33,184) |
Parent [Member] | ||||||
Changes in equity | ||||||
Beginning Balance | 10,911,928 | 10,989,549 | 10,733,999 | 10,632,606 | 10,989,549 | 10,632,606 |
Net income attributable to common stockholders | 170,828 | 167,971 | 168,281 | 170,366 | ||
Loss on cash flow hedges | (1,461) | (17,603) | (2,888) | (7,231) | ||
Cash flow hedge losses reclassified to earnings | 2,301 | 1,949 | 1,611 | 1,468 | ||
Change in redemption value of redeemable noncontrolling interest | (146) | 471 | (45) | (224) | ||
Dividends declared to common stockholders ($1.59 per share) | (224,172) | (224,083) | (212,549) | (212,166) | ||
Issuance of common stock, net of withholdings | 1,188 | (14,107) | 50,806 | 141,319 | ||
Amortization of deferred compensation | 9,724 | 7,781 | 10,785 | 7,861 | ||
Ending Balance | 10,870,190 | 10,911,928 | 10,750,000 | $ 10,733,999 | 10,870,190 | 10,750,000 |
Noncontrolling Interest [Member] | ||||||
Changes in equity | ||||||
Beginning Balance | 614 | 649 | 649 | |||
Noncontrolling interests income allocation | 1 | (35) | 530 | |||
Ending Balance | $ 615 | $ 614 | $ 530 | 615 | $ 530 | |
Continuous Equity Program CEP V [Member] | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock, net | $ 0 |
Equity (Details 2)
Equity (Details 2) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 280,000,000 | 280,000,000 | |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,902 | ||
Common stock issued through the dividend reinvestment plan (in shares) | 1,183 | 1,092 | |
Number of shares of stock grants withheld (in shares) | 73,089 | 75,195 | |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 8,686 | ||
Stock issued during period, shares, share-based compensation, forfeited (in shares) | 4,050 | ||
Continuous Equity Program CEP V [Member] | |||
Class of Stock [Line Items] | |||
Maximum value of shares of common stock that can be sold (in dollars) | $ 1,000,000,000 | ||
Common stock value, remaining to be authorized under continuous equity program | $ 752,878,000 | ||
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) | 164,526 | 150,359 |
Investments in Real Estate En_3
Investments in Real Estate Entities - Narrative of Investment in Real Estate Entities (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)entity | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)entity | Jun. 30, 2019USD ($) | |
Equity method investment | ||||
Expensed transaction, development and other pursuit costs, net of recoveries | $ | $ 388 | $ 1,766 | $ 3,722 | $ 2,388 |
Unconsolidated real estate entities | ||||
Equity method investment | ||||
Number of unconsolidated real estate entities | entity | 7 | 7 | ||
Minimum | Unconsolidated real estate entities | ||||
Equity method investment | ||||
Ownership percentage | 20.00% | 20.00% | ||
Maximum | Unconsolidated real estate entities | ||||
Equity method investment | ||||
Ownership percentage | 50.00% | 50.00% |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
ASSETS | |||||
Real estate, net | $ 18,300,316 | $ 18,300,316 | $ 18,432,989 | ||
Total assets | 19,351,490 | 19,351,490 | 19,121,051 | ||
LIABILITIES AND EQUITY | |||||
Mortgage notes payable, net | 931,772 | 931,772 | 937,642 | ||
Partners' capital | 10,870,190 | 10,870,190 | 10,989,549 | ||
Total liabilities and equity | 19,351,490 | 19,351,490 | 19,121,051 | ||
Combined summary of the operating results of the accounted for using the equity method | |||||
Rental and other income | 576,405 | $ 577,263 | 1,178,056 | $ 1,143,446 | |
Operating and other expenses | (443,980) | (428,774) | (906,648) | (838,113) | |
Gain on sale of communities | 35,295 | 20,530 | 59,731 | 35,365 | |
Interest expense, net | (53,399) | (50,010) | (109,313) | (97,902) | |
Depreciation expense | (176,249) | (162,693) | (354,160) | (324,749) | |
Net income | 170,869 | 168,305 | 338,875 | 338,723 | |
Equity Method Investment, Net Income (Loss), Portion Attributable To Parent | 1,041 | 730 | 2,746 | 202 | |
Equity Method Investments, Amortization Of Excess Investment And Other | (529) | (533) | (1,059) | (1,065) | |
Equity in income (loss) of unconsolidated real estate entities | 512 | 197 | 1,687 | (863) | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||
ASSETS | |||||
Real estate, net | 1,203,277 | 1,203,277 | 1,204,470 | ||
Other assets | 198,997 | 198,997 | 196,488 | ||
Total assets | 1,402,274 | 1,402,274 | 1,400,958 | ||
LIABILITIES AND EQUITY | |||||
Mortgage notes payable, net | 780,217 | 780,217 | 782,257 | ||
Other liabilities | 154,881 | 154,881 | 157,379 | ||
Partners' capital | 467,176 | 467,176 | 461,322 | ||
Total liabilities and equity | 1,402,274 | 1,402,274 | $ 1,400,958 | ||
Combined summary of the operating results of the accounted for using the equity method | |||||
Rental and other income | 30,427 | 35,998 | 63,499 | 71,253 | |
Operating and other expenses | (11,732) | (13,885) | (23,912) | (28,089) | |
Gain on sale of communities | 40 | 0 | 40 | 0 | |
Interest expense, net | (8,053) | (8,543) | (16,109) | (17,096) | |
Depreciation expense | (8,713) | (18,346) | (17,402) | (40,042) | |
Net income | $ 1,969 | $ (4,776) | $ 6,116 | $ (13,974) |
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) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Equity method investment | ||||
Expensed transaction, development and other pursuit costs, net of recoveries | $ 388 | $ 1,766 | $ 3,722 | $ 2,388 |
Impairment of investment in unconsolidated entities | 0 | 0 | 0 | 0 |
Land Parcel [Member] | ||||
Equity method investment | ||||
Casualty and impairment (gain) loss, net | 0 | $ 0 | 0 | $ 0 |
Development Communities [Member] | The Park Loggia [Member] | ||||
Equity method investment | ||||
Casualty and impairment (gain) loss, net | $ 0 | $ 0 |
Real Estate Disposition Activ_2
Real Estate Disposition Activities (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)communityhomeresidential_condominiumft² | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)communityhomeresidential_condominiumft² | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Summary of income from discontinued operations | |||||
Gain on sale of communities | $ 35,295 | $ 20,530 | $ 59,731 | $ 35,365 | |
Number Of Communities Held For Sale | community | 0 | 0 | |||
Number of Residential Condominium Units Sold | residential_condominium | 16 | 52 | |||
Gain (Loss) on Sale of Other Investments | $ 7,446 | 0 | |||
Other Selling, General and Administrative Expense | $ 1,196 | $ 945 | 2,639 | $ 1,418 | |
For-sale condominium inventory | 311,236 | $ 311,236 | $ 457,809 | ||
Avalon Shelton [Member] | |||||
Summary of income from discontinued operations | |||||
Number Of Apartment Homes Sold | home | 250 | ||||
Proceeds from Sale of Real Estate | $ 64,750 | ||||
Gain on sale of communities | $ 24,413 | ||||
Avalon Tinton Falls [Member] | |||||
Summary of income from discontinued operations | |||||
Number Of Apartment Homes Sold | home | 216 | ||||
Proceeds from Sale of Real Estate | $ 64,900 | ||||
Gain on sale of communities | 35,297 | ||||
The Park Loggia [Member] | |||||
Summary of income from discontinued operations | |||||
Proceeds from Sale of Real Estate | $ 61,207 | $ 166,814 | |||
Number Of Residential Condominium Units | home | 172 | 172 | |||
Retail Square Feet | ft² | 67 | 67 | |||
Gain (Loss) on Sale of Other Investments | $ 2,544 | $ 7,447 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)communityLeaseproperty | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)communityLeaseproperty | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||||
Number Of Office Leases | Lease | 14 | 14 | |||
Operating lease assets | $ 138,113 | $ 138,113 | $ 103,063 | ||
Operating lease obligation | 163,321 | 163,321 | 120,261 | ||
Operating Lease, Expense | 4,240 | $ 3,568 | 8,157 | $ 7,105 | |
Financing lease asset | 21,791 | 21,791 | 21,898 | ||
Financing lease obligation | $ 20,186 | $ 20,186 | $ 20,207 | ||
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 | |||
Assets Held under Operating Leases [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Number Of operating apartment communities owned | community | 10 | 10 | |||
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 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reconciliation of NOI to net income | ||||
Net income | $ 170,869 | $ 168,305 | $ 338,875 | $ 338,723 |
Indirect operating expenses, net of corporate income | 23,407 | 23,018 | 46,206 | 42,740 |
Expensed transaction, development and other pursuit costs, net of recoveries | 388 | 1,766 | 3,722 | 2,388 |
Interest expense, net | 53,399 | 50,010 | 109,313 | 97,902 |
Loss on extinguishment of debt, net | 268 | 229 | 9,438 | 509 |
General and administrative expense | 15,573 | 18,965 | 32,893 | 32,671 |
Equity in (income) loss of unconsolidated real estate entities | (512) | (197) | (1,687) | 863 |
Depreciation expense | 176,249 | 162,693 | 354,160 | 324,749 |
Income Tax Expense (Benefit) | (1,133) | 0 | (1,042) | (6) |
Gain on sale of communities | (35,295) | (20,530) | (59,731) | (35,365) |
Gain on other real estate transactions, net | (156) | (34) | (199) | (300) |
Gain (Loss) on Sale of Other Investments | (1,348) | 945 | (4,808) | 1,418 |
Net operating income from real estate assets sold or held for sale | (336) | (5,075) | (1,232) | (11,281) |
Net operating income | $ 401,373 | $ 400,095 | $ 825,908 | $ 795,011 |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting [Abstract] | ||||
Rental income from real estate assets sold or held for sale | $ 579 | $ 8,712 | $ 2,004 | $ 19,352 |
Operating expenses from real estate assets sold or held for sale | (243) | (3,637) | (772) | (8,071) |
Net operating income from real estate assets sold or held for sale | $ 336 | $ 5,075 | $ 1,232 | $ 11,281 |
Segment Reporting (Details 3)
Segment Reporting (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting | ||||
Total revenue | $ 576,405 | $ 577,263 | $ 1,178,056 | $ 1,143,446 |
NOI | 401,373 | 400,095 | 825,908 | 795,011 |
Gross real estate | 23,789,801 | 22,632,709 | 23,789,801 | 22,632,709 |
Operating Segments | Established | ||||
Segment Reporting | ||||
Total revenue | 523,531 | 539,505 | 1,071,487 | 1,071,335 |
NOI | 368,191 | 382,416 | 759,836 | 762,753 |
Gross real estate | 19,394,119 | 19,228,408 | 19,394,119 | 19,228,408 |
Operating Segments | Established | New England | ||||
Segment Reporting | ||||
Total revenue | 79,729 | 79,566 | 161,398 | 158,254 |
NOI | 52,835 | 52,474 | 106,515 | 104,557 |
Gross real estate | 2,768,509 | 2,728,480 | 2,768,509 | 2,728,480 |
Operating Segments | Established | Metro NY/NJ | ||||
Segment Reporting | ||||
Total revenue | 113,942 | 120,427 | 234,673 | 238,804 |
NOI | 78,080 | 84,420 | 162,564 | 167,404 |
Gross real estate | 4,339,998 | 4,316,859 | 4,339,998 | 4,316,859 |
Operating Segments | Established | Mid-Atlantic | ||||
Segment Reporting | ||||
Total revenue | 87,970 | 90,115 | 179,687 | 178,486 |
NOI | 61,644 | 63,241 | 127,953 | 126,157 |
Gross real estate | 3,552,832 | 3,517,332 | 3,552,832 | 3,517,332 |
Operating Segments | Established | Pacific Northwest | ||||
Segment Reporting | ||||
Total revenue | 27,678 | 28,224 | 56,414 | 56,026 |
NOI | 19,626 | 20,605 | 40,464 | 40,815 |
Gross real estate | 992,976 | 987,121 | 992,976 | 987,121 |
Operating Segments | Established | Northern California | ||||
Segment Reporting | ||||
Total revenue | 101,263 | 102,435 | 205,623 | 203,695 |
NOI | 77,844 | 78,093 | 158,295 | 156,808 |
Gross real estate | 3,271,293 | 3,252,502 | 3,271,293 | 3,252,502 |
Operating Segments | Established | Southern California | ||||
Segment Reporting | ||||
Total revenue | 107,091 | 112,821 | 221,901 | 224,287 |
NOI | 74,601 | 80,180 | 157,056 | 160,096 |
Gross real estate | 4,147,828 | 4,106,419 | 4,147,828 | 4,106,419 |
Operating Segments | Established | Expansion Markets [Member] | ||||
Segment Reporting | ||||
Total revenue | 5,858 | 5,917 | 11,791 | 11,783 |
NOI | 3,561 | 3,403 | 6,989 | 6,916 |
Gross real estate | 320,683 | 319,695 | 320,683 | 319,695 |
Operating Segments | Other Stabilized | ||||
Segment Reporting | ||||
Total revenue | 34,677 | 25,522 | 70,167 | 47,548 |
NOI | 23,108 | 17,237 | 46,604 | 31,966 |
Gross real estate | 1,593,551 | 1,257,613 | 1,593,551 | 1,257,613 |
Operating Segments | Development / Redevelopment | ||||
Segment Reporting | ||||
Total revenue | 16,692 | 2,410 | 32,465 | 2,959 |
NOI | 10,074 | 442 | 19,468 | 292 |
Gross real estate | 2,346,168 | 1,589,009 | 2,346,168 | 1,589,009 |
Operating Segments | Disposals [Member] | ||||
Segment Reporting | ||||
Gross real estate | 209,170 | 209,170 | ||
Land Held for Future Development | ||||
Segment Reporting | ||||
Gross real estate | 39,829 | 18,606 | 39,829 | 18,606 |
Non-allocated | ||||
Segment Reporting | ||||
Total revenue | 926 | 1,114 | 1,933 | 2,252 |
Gross real estate | 416,134 | 539,073 | 416,134 | 539,073 |
Continuing Operations | ||||
Segment Reporting | ||||
Total revenue | 575,826 | 568,551 | 1,176,052 | 1,124,094 |
Continuing Operations | Operating Segments | Established | ||||
Segment Reporting | ||||
Total revenue | 523,531 | 539,505 | 1,071,487 | 1,071,335 |
Continuing Operations | Operating Segments | Other Stabilized | ||||
Segment Reporting | ||||
Total revenue | 34,677 | 25,522 | 70,167 | 47,548 |
Continuing Operations | Non-allocated | ||||
Segment Reporting | ||||
Total revenue | $ 926 | $ 1,114 | $ 1,933 | $ 2,252 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details 2) - Performance Shares | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Performance awards | |
Equity instruments outstanding at the beginning of the period (in shares) | 253,432 |
Equity instruments granted (in shares) | 76,164 |
Change in awards based on performance (in shares) | 18,112 |
Converted to restricted stock (in shares) | (96,317) |
Forfeited (in shares) | (8,004) |
Equity instruments outstanding at the end of the period (in shares) | 243,387 |
Weighted average grant date fair value per award | |
Equity instruments outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 176.27 |
Grant date fair value per share (in dollars per share) | $ / shares | 238.86 |
Change in awards based on performance (in dollars per share) | $ / shares | 177.26 |
Converted to restricted stock (in dollars per share) | $ / shares | 177.26 |
Forfeited (in dollars per share) | $ / shares | 183.45 |
Equity instruments outstanding at the end of the period (in dollars per share) | $ / shares | $ 195.31 |
Grants in period based on total shareholder metrics | 38,314 |
Grants in period based on financial metrics | 37,850 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans Stock-Based Compensation Plans (Details 3) - Performance Shares | 6 Months Ended |
Jun. 30, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend yield | 2.80% |
Estimated volatility, Minimum (as a percent) | 11.10% |
Estimated volatility, Maximum (as a percent) | 15.50% |
Risk-free interest rate, minimum (as a percent) | 1.45% |
Risk-free interest rate, maximum (as a percent) | 1.62% |
Average estimated fair value (in dollars per share) | $ 254.72 |
Historical volatility (as a percent) | 50.00% |
Implied volatility (as a percent) | 50.00% |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans Stock-Based Compensation Plans (Details 4) - $ / shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Restricted stock | ||
Restricted stock shares | ||
Equity instruments outstanding at the beginning of the period (in shares) | 148,326 | |
Equity instruments granted (in shares) | 68,209 | 77,287 |
Vested (in shares) | (76,893) | |
Forfeited (in shares) | (3,456) | |
Equity instruments outstanding at the end of the period (in shares) | 136,186 | |
Restricted stock shares weighted average grant date fair value per share | ||
Equity instruments outstanding at the beginning of the period (in dollars per share) | $ 181.29 | |
Grant date fair value per share (in dollars per share) | 222.12 | |
Vested (in dollars per share) | 178.57 | |
Forfeited (in dollars per share) | 191.73 | |
Equity instruments outstanding at the end of the period (in dollars per share) | $ 203 | |
Restricted Stock Converted From Performance Shares | ||
Restricted stock shares | ||
Equity instruments outstanding at the beginning of the period (in shares) | 163,111 | |
Equity instruments granted (in shares) | 96,317 | 73,072 |
Vested (in shares) | (109,758) | |
Forfeited (in shares) | (594) | |
Equity instruments outstanding at the end of the period (in shares) | 149,076 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans (Details 5) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Additional disclosures | ||
Stock-based compensation expense | $ 11,624 | $ 13,129 |
Capitalized stock-based compensation cost | $ 6,174 | $ 5,374 |
Performance Shares | ||
Additional disclosures | ||
Grant date value (in dollars per share) | $ 225.59 | |
Restricted stock and restricted stock units | ||
Additional disclosures | ||
Unrecognized compensation cost for unvested restricted stock | $ 39,406 | |
Weighted average period for recognition of unrecognized compensation cost | 2 years 1 month 6 days |
Related Party Arrangements (Det
Related Party Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Related Party Arrangements | |||||
Management, development and other fees | $ 926 | $ 1,114 | $ 1,933 | $ 2,252 | |
Compensation expense | 11,624 | 13,129 | |||
Unconsolidated real estate entities | |||||
Related Party Arrangements | |||||
Outstanding receivables | 1,795 | 1,795 | $ 3,924 | ||
Non Employee Director | Restricted stock and deferred stock awards | |||||
Related Party Arrangements | |||||
Compensation expense | 446 | $ 405 | 901 | $ 830 | |
Amount of deferred compensation | $ 1,389 | $ 1,389 | $ 594 |
Fair Value (Details)
Fair Value (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($)derivative | Mar. 31, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2020USD ($)venturederivative | Jun. 30, 2019USD ($) | |
Derivative instruments and Hedging Activities | ||||||
Derivative, Notional Amounts Settled During Period | $ 250,000,000 | $ 350,000,000 | $ 600,000,000 | |||
Payments for (Proceeds from) Hedge, Financing Activities | 4,821,000 | 20,314,000 | 25,135,000 | $ 12,309,000 | ||
Loss on cash flow hedges | $ (1,461,000) | (17,603,000) | $ (2,888,000) | $ (7,231,000) | $ (19,064,000) | $ (10,119,000) |
Cash Flow Hedges | ||||||
Derivative instruments and Hedging Activities | ||||||
Number of derivative instruments held | derivative | 2 | 2 | ||||
Interest Rate Swap | Cash Flow Hedges | ||||||
Derivative instruments and Hedging Activities | ||||||
Derivative, Notional Amounts Entered into During Period | $ 100,000,000 | |||||
Derivative, Notional Amount | $ 100,000,000 | $ 100,000,000 | ||||
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 | $ 9,467,000 | |||||
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 | ||||||
Derivative, Notional Amount | $ 441,368,000 | $ 441,368,000 | ||||
Unsecured Notes 2.45 Percent [Member] | ||||||
Derivative instruments and Hedging Activities | ||||||
Debt Instrument, Face Amount | $ 600,000,000 | $ 600,000,000 | ||||
Unsecured Notes 2.30 Percent [Member] | ||||||
Derivative instruments and Hedging Activities | ||||||
Debt Instrument, Face Amount | $ 700,000,000 |
Fair Value Fair Value (Details
Fair Value Fair Value (Details 2) | Jun. 30, 2020USD ($) |
Not Designated as Hedging Instrument | Interest Rate Cap | |
Derivative instruments and Hedging Activities | |
Derivative, Notional Amount | $ 441,368,000 |
Derivative weighted average interest rate | 1.70% |
Derivative, average cap interest rate | 6.50% |
Cash Flow Hedges | Interest Rate Swap | |
Derivative instruments and Hedging Activities | |
Derivative, Notional Amount | $ 100,000,000 |
Derivative, average cap interest rate | 0.70% |
Fair Value (Details 3)
Fair Value (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||||||
Cash flow hedge losses reclassified to earnings | $ (2,301) | $ (1,949) | $ (1,611) | $ (1,468) | $ (4,250) | $ (3,079) |
Fair Value (Details 4)
Fair Value (Details 4) - Recurring basis - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Estimate of Fair Value Measurement | ||
Financial Instruments Measured/Discussed at Fair Value | ||
DownREIT units | $ (1,160) | $ (1,573) |
Total | (8,377,171) | (7,603,688) |
Estimate of Fair Value Measurement | Unsecured notes | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (7,247,946) | (6,197,771) |
Estimate of Fair Value Measurement | Secured Debt and Variable Rate Unsecured Indebtedness | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (1,128,029) | (1,398,147) |
Estimate of Fair Value Measurement | Interest Rate Cap | Not Designated as Hedging Instrument | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 5 | |
Estimate of Fair Value Measurement | Interest Rate Swap | Cash Flow Hedges | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 178 | 388 |
Derivative liability | (98) | (6,379) |
Estimate of Fair Value Measurement | Put Option | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Fair value of remaining outstanding Puts | (121) | (206) |
Fair Value, Inputs, Level 1 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
DownREIT units | (1,160) | (1,573) |
Total | (7,249,106) | (6,199,344) |
Fair Value, Inputs, Level 1 | Unsecured notes | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (7,247,946) | (6,197,771) |
Fair Value, Inputs, Level 2 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Total | (1,127,944) | (1,404,138) |
Fair Value, Inputs, Level 2 | Secured Debt and Variable Rate Unsecured Indebtedness | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (1,128,029) | (1,398,147) |
Fair Value, Inputs, Level 2 | Interest Rate Cap | Not Designated as Hedging Instrument | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 5 | |
Fair Value, Inputs, Level 2 | Interest Rate Swap | Cash Flow Hedges | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 178 | 388 |
Derivative liability | (98) | (6,379) |
Fair Value, Inputs, Level 3 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Total | (121) | (206) |
Fair Value, Inputs, Level 3 | Put Option | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Fair value of remaining outstanding Puts | $ (121) | $ (206) |
Subsequent Events (Details)
Subsequent Events (Details) - AVA Arts District [Member] - Subsequent Event [Member] $ in Thousands | Jul. 31, 2020USD ($)home |
Subsequent Event [Line Items] | |
Number Of operating apartment communities owned | home | 475 |
Real estate investments projected total capitalized cost | $ 279,000 |
Ownership percentage | 25.00% |
Equity method investments | $ 13,000 |
Joint Venture Partner | |
Subsequent Event [Line Items] | |
Ownership percentage | 75.00% |
Forecast | |
Subsequent Event [Line Items] | |
Construction loan | $ 167,000 |
Equity method investments | $ 28,000 |