Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
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 $0.01 per share | |
Trading Symbol | AVB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 139,604,637 | |
Entity Central Index Key | 0000915912 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Real estate: | ||
Land and improvements | $ 4,422,683 | $ 4,394,298 |
Buildings and improvements | 17,439,415 | 17,231,275 |
Furniture, fixtures and equipment | 941,756 | 924,583 |
Gross operating real estate | 22,803,854 | 22,550,156 |
Less accumulated depreciation | (5,859,490) | (5,700,179) |
Net operating real estate | 16,944,364 | 16,849,977 |
Construction in Progress, Gross | 818,232 | 989,765 |
Land held for development | 184,058 | 110,142 |
For-sale condominium inventory | 253,859 | 267,219 |
Real estate assets held for sale, net | 52,776 | 16,678 |
Real Estate Investment Property, Net, Total | 18,253,289 | 18,233,781 |
Cash and cash equivalents | 129,298 | 216,976 |
Cash in escrow | 100,434 | 96,556 |
Resident security deposits | 30,914 | 30,811 |
Investments in unconsolidated real estate entities | 210,650 | 202,612 |
Deferred development costs | 47,081 | 55,427 |
Prepaid expenses and other assets | 195,965 | 207,715 |
Right of use lease assets | 152,901 | 155,266 |
Total assets | 19,120,532 | 19,199,144 |
LIABILITIES AND EQUITY | ||
Unsecured notes, net | 6,703,759 | 6,702,005 |
Variable rate unsecured credit facility | 0 | 0 |
Mortgage notes payable, net | 834,025 | 862,332 |
Dividends payable | 223,805 | 224,897 |
Payables for construction | 84,954 | 93,609 |
Accrued expenses and other liabilities | 303,188 | 274,699 |
Lease liabilities | 179,968 | 181,479 |
Accrued interest payable | 62,203 | 49,033 |
Resident security deposits | 56,426 | 55,928 |
Liabilities related to real estate assets held for sale | 443 | 311 |
Total liabilities | 8,448,771 | 8,444,293 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 2,857 | 2,677 |
Equity: | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common Stock, Value, Issued | 1,396 | 1,395 |
Additional paid-in capital | 10,657,665 | 10,664,416 |
Accumulated earnings less dividends | 47,151 | 126,022 |
Accumulated other comprehensive loss | (37,883) | (40,250) |
Stockholders' Equity Attributable to Parent | 10,668,329 | 10,751,583 |
Stockholders' Equity Attributable to Noncontrolling Interest | 575 | 591 |
Total equity | 10,668,904 | 10,752,174 |
Total liabilities and equity | $ 19,120,532 | $ 19,199,144 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 280,000,000 | 280,000,000 |
Common stock, shares issued (in shares) | 139,604,087 | 139,526,671 |
Common stock, shares outstanding (in shares) | 139,604,087 | 139,526,671 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | ||
Rental and other income | $ 550,258 | $ 601,260 |
Management, development and other fees | 877 | 1,007 |
Total revenue | 551,135 | 602,267 |
Expenses: | ||
Operating expenses, excluding property taxes | 140,050 | 132,609 |
Property taxes | 69,410 | 67,026 |
Other Nonoperating Income (Expense) | (170) | 3,334 |
Interest Expense | 52,613 | 55,914 |
Gain (Loss) on Extinguishment of Debt | (122) | 9,170 |
Depreciation expense | 183,297 | 177,911 |
General and administrative expense | 17,352 | 17,320 |
Total expenses | 462,430 | 463,284 |
Equity in (loss) income of unconsolidated real estate entities | (467) | 1,175 |
Gains (Losses) on Sales of Investment Real Estate | 53,727 | 24,436 |
Gain on other real estate transactions, net | 427 | 43 |
Net for-sale condominium activity | (913) | 3,460 |
Income before income taxes | 141,479 | 168,097 |
Income tax benefit (expense) | 755 | (91) |
Net income | 142,234 | 168,006 |
Net income attributable to noncontrolling interests | (11) | (35) |
Net income attributable to common stockholders | 142,223 | 167,971 |
Other comprehensive income: | ||
Loss on cash flow hedges | 0 | (17,603) |
Cash flow hedge losses reclassified to earnings | 2,367 | 1,949 |
Comprehensive income | $ 144,590 | $ 152,317 |
Earnings per common share - basic: | ||
Net income attributable to common stockholders (in dollars per share) | $ 1.02 | $ 1.19 |
Earnings per common share - diluted: | ||
Net income attributable to common stockholders (in dollars per share) | $ 1.02 | $ 1.19 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||||||
Net income | $ 142,234 | $ 168,006 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||
Depreciation expense | 183,297 | 177,911 | ||||
Amortization of deferred financing costs | 1,837 | 1,882 | ||||
Amortization of debt discount | 642 | 411 | ||||
Gain (Loss) on Extinguishment of Debt | 122 | (9,170) | ||||
Amortization of stock-based compensation | 5,382 | 5,338 | ||||
Equity in loss of, and return on, unconsolidated real estate entities and noncontrolling interests, net of eliminations | 1,994 | 1,871 | ||||
Abandonment of development pursuits | 246 | 1,988 | ||||
Unrealized Gain (Loss) on Derivatives | (2,654) | 0 | $ 2,894 | |||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | 2,367 | 1,949 | ||||
Gain (Loss) on Sale of Properties | (54,154) | (24,479) | ||||
Gain (Loss) on Sale of Other Investments | (131) | (4,903) | ||||
Increase (Decrease) in Prepaid Expense and Other Assets | 9,423 | (1,239) | ||||
Increase (Decrease) in Accrued Liabilities | 39,784 | 3,799 | ||||
Net Cash Provided by (Used in) Operating Activities, Total | 330,145 | 341,704 | ||||
Cash flows from investing activities: | ||||||
Payments to Develop Real Estate Assets | (198,373) | (245,789) | ||||
Payments for Capital Improvements | (28,020) | (32,922) | ||||
Payments for Capital Improvements, Non Real Estate | (2,234) | (10,663) | ||||
Increase (Decrease) in Construction Payables | (8,655) | 462 | ||||
Proceeds from Sale of Real Estate Held-for-investment | 76,543 | 63,073 | ||||
Proceeds from Sale of Other Real Estate | 13,569 | 98,790 | ||||
Payments to Acquire Mortgage Notes Receivable | 0 | (179) | ||||
Proceeds from Sale and Collection of Notes Receivable | 1,250 | 960 | ||||
Payments to Acquire Businesses and Interest in Affiliates | (10,032) | (9,799) | ||||
Net Cash Provided by (Used in) Investing Activities, Total | (155,952) | (136,067) | ||||
Cash flows from financing activities: | ||||||
Proceeds from Issuance of Common Stock | 11 | 125 | ||||
Payments of Ordinary Dividends | (222,734) | (213,671) | ||||
Proceeds from Unsecured Lines of Credit | 0 | 750,000 | ||||
Proceeds from Secured Notes Payable | 0 | 51,000 | ||||
Repayments of Notes Payable | (28,488) | (51,484) | ||||
Proceeds from Unsecured Notes Payable | 0 | 699,252 | ||||
Repayments of Unsecured Debt | 0 | (658,655) | ||||
Payments of Financing Costs | 0 | (5,988) | ||||
Payments for (Proceeds from) Hedge, Financing Activities | 6,962 | (20,314) | ||||
Proceeds from (Payments to) Noncontrolling Interests | (22) | (35) | ||||
Payment, Tax Withholding, Share-based Payment Arrangement | (13,228) | (14,346) | ||||
Payments of Capital Distribution | (12) | (12) | ||||
Payments of Distributions to Affiliates | (82) | (102) | ||||
Payment For Redemption Of Preferred Interest Obligation | (400) | (600) | ||||
Net Cash Provided by (Used in) Financing Activities, Total | (257,993) | 535,170 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | (83,800) | 740,807 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 313,532 | 127,614 | 127,614 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 229,732 | 868,421 | 313,532 | |||
Cash paid during the period for interest, net of amount capitalized | 37,252 | 36,985 | ||||
Supplemental Cash Flow Information [Abstract] | ||||||
Cash and cash equivalents | $ 129,298 | $ 216,976 | $ 777,995 | |||
Cash in escrow | 100,434 | 96,556 | 90,426 | |||
Cash, cash equivalents and cash in escrow reported in the Condensed Consolidated Statements of Cash Flows | $ 229,732 | $ 868,421 | $ 127,614 | $ 229,732 | $ 313,532 | $ 868,421 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($)Leaseshares | |
Supplemental disclosures of non-cash investing and financing activities | ||
Common stock issued through the dividend reinvestment plan (in shares) | shares | 839 | 529 |
Common stock issued through the dividend reinvestment plan | $ 138 | $ 112 |
Number of shares withheld to satisfy employees' tax withholding and other liabilities (in shares) | shares | 74,726 | 70,351 |
Shares withheld to satisfy employees' tax withholding and other liabilities, value | $ 13,228 | $ 14,346 |
Stock issued during period, shares, share-based compensation, forfeited (in shares) | shares | 343 | |
Stock issued during period, value, share-based compensation, forfeited | $ 69 | 660 |
Dividends declared but not paid | 223,805 | |
Change in redemption value of redeemable noncontrolling interest | (273) | 471 |
Cash flow hedge losses reclassified to earnings | 2,367 | 1,949 |
Operating Lease, Right-of-Use Asset | 131,269 | |
Total lease liabilities | $ 159,813 | |
Increase (Decrease) in Derivative Liabilities | 3,302 | |
Increase (Decrease) in Derivative Assets | $ 22 | |
Restricted Stock and Restricted Stock Converted From Performance Shares | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Equity instruments granted (in shares) | shares | 149,520 | 161,229 |
Restricted Stock Converted From Performance Shares | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Equity instruments granted (in shares) | shares | 0 | 96,317 |
Restricted stock | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Equity instruments granted (in shares) | shares | 92,975 | 64,912 |
Fair value of shares issued | $ 16,347 | $ 14,640 |
Stock issued during period, shares, share-based compensation, forfeited (in shares) | shares | 343 | 3,931 |
Performance Shares | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Equity instruments granted (in shares) | shares | 137,929 | |
Converted to restricted stock (in shares) | shares | 56,545 | |
Common stock | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Dividends declared but not paid | $ 222,424 | $ 224,079 |
Accumulated earnings less dividends | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Change in redemption value of redeemable noncontrolling interest | $ (273) | 471 |
Accounting Standards Update 2016-02 | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Operating Lease, Right-of-Use Asset | 46,875 | |
Total lease liabilities | $ 46,875 | |
New Office Leases | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Number of New Office Leases | Lease | 2 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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, Southeast Florida, Denver, Colorado, the Pacific Northwest, and Northern and Southern California. At March 31, 2021, the Company owned or held a direct or indirect ownership interest in 275 operating apartment communities containing 81,227 apartment homes in 11 states and the District of Columbia. In addition, the Company owned or held a direct or indirect ownership interest in 15 communities under development that are expected to contain an aggregate of 4,560 apartment homes when completed, as well as The Park Loggia, which contains 172 for-sale residential condominiums, of which 80 have been sold as of March 31, 2021, and 66,000 square feet of commercial space, of which 87% has been leased as of March 31, 2021. 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 25 communities that, if developed as expected, will contain an estimated 8,075 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 2020 Annual Report on Form 10-K. The results of operations for the three months ended March 31, 2021 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 3/31/2021 3/31/2020 Basic and diluted shares outstanding Weighted average common shares - basic 139,291,187 140,376,996 Weighted average DownREIT units outstanding 7,500 7,500 Effect of dilutive securities 253,726 393,377 Weighted average common shares - diluted 139,552,413 140,777,873 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 142,223 $ 167,971 Net income allocated to unvested restricted shares (324) (427) Net income attributable to common stockholders, adjusted $ 141,899 $ 167,544 Weighted average common shares - basic 139,291,187 140,376,996 Earnings per common share - basic $ 1.02 $ 1.19 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 142,223 $ 167,971 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 12 12 Adjusted net income attributable to common stockholders $ 142,235 $ 167,983 Weighted average common shares - diluted 139,552,413 140,777,873 Earnings per common share - diluted $ 1.02 $ 1.19 Certain options to purchase shares of common stock in the amount of 294,115 were outstanding as of March 31, 2021, but were not included in the computation of diluted earnings per share because such options were anti-dilutive for the period. 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. 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 condominiums 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 commercial space within its apartment communities; and • lessee under (i) ground leases for land underlying current operating or development communities and certain commercial and parking facilities 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 commercial 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 commercial 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. Additionally, for the Company’s residential and commercial leases, which are comprised of the lease component and common area maintenance as a non-lease component, the Company determined that (i) the leases are operating leases, (ii) the lease component is the predominant component and (iii) that all components of its operating leases share the same timing and pattern of transfer. 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 commercial 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 months ended March 31, 2021 and 2020. Segment information for total revenue has been adjusted to exclude the real estate assets that were sold from January 1, 2020 through March 31, 2021, or otherwise qualify as held for sale as of March 31, 2021, as described in Note 6, "Real Estate Disposition Activities" (dollars in thousands): For the three months ended Established Other Development/ Non- Total For the three months ended March 31, 2021 Management, development and other fees $ — $ — $ — $ 877 $ 877 Rental and non-rental related income (2) 1,668 427 135 — 2,230 Total non-lease revenue (3) 1,668 427 135 877 3,107 Lease income (4) 500,590 29,566 15,569 — 545,725 Business interruption insurance proceeds — — — — — Total revenue $ 502,258 $ 29,993 $ 15,704 $ 877 $ 548,832 For the three months ended March 31, 2020 Management, development and other fees $ — $ — $ — $ 1,007 $ 1,007 Rental and non-rental related income (2) 1,633 594 51 — 2,278 Total non-lease revenue (3) 1,633 594 51 1,007 3,285 Lease income (4) 551,000 27,991 4,738 — 583,729 Business interruption insurance proceeds — — — — — Total revenue $ 552,633 $ 28,585 $ 4,789 $ 1,007 $ 587,014 __________________________________ (1) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. (2) Amounts include revenue streams related to 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. (3) Represents all revenue accounted for under ASC 606. (4) Amounts include all revenue streams derived from residential and commercial 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 March 31, 2021. Lease Revenue Reserves The Company assesses the collectability of its lease revenue and receivables on an on-going basis. Under ASC 842, Lease Accounting, the Company assesses the probability of receiving all remaining lease amounts due on a lease by lease basis, reserving for revenue and the related receivables for those leases where collection of substantially all of the remaining lease payments is not probable. Subsequently, the Company will only recognize revenue to the extent cash is received. If the Company determines that collection of the remaining lease payments becomes probable at a future date, the Company will recognize the cumulative revenue that would have been recorded under the original lease agreement. In addition to the specific reserves recognized under ASC 842, the Company also evaluates its lease receivables for collectability at a portfolio level under ASC 450, Contingencies – Loss Contingencies. The Company recognizes a reserve under ASC 450 when the uncollectible revenue is probable and reasonably estimable. The Company applies this reserve to the population of the Company’s revenue and receivables not specifically addressed as part of the specific ASC 842 reserve. 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 effectiveness of vaccines and the rate of vaccinations, (iii) the duration and nature of governmental responses to contain the spread of the disease and assist consumers and businesses, (iv) consumer and business responses to the pandemic, including preferences for where and how to live and work, and (v) how quickly and to what extent normal economic and operating conditions can resume. Because of this uncertainty, any estimate of the expected impact of the COVID-19 pandemic on results of operations, cash flows, financial condition, or liquidity for periods beyond the three months ended March 31, 2021 is uncertain. As of March 31, 2021, 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 commercial lease portfolios. The Company recorded an aggregate offset to income for uncollectible lease revenue for its residential and commercial portfolios of $18,645,000 for the three months ended March 31, 2021 under ASC 842 and ASC 450. |
Interest Capitalized
Interest Capitalized | 3 Months Ended |
Mar. 31, 2021 | |
Interest Capitalized | |
Interest Capitalized | Interest CapitalizedThe Company capitalizes interest during the development and redevelopment of real estate assets. Capitalized interest associated with the Company's development or redevelopment activities totaled $8,799,000 and $11,498,000 for the three months ended March 31, 2021 and 2020, respectively. |
Mortgage Notes Payable, Unsecur
Mortgage Notes Payable, Unsecured Notes and Credit Facility | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable, Unsecured Notes and Credit Facility | Mortgage Notes Payable, Unsecured Notes, Term Loans 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 March 31, 2021 and December 31, 2020 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 March 31, 2021 and December 31, 2020, as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, "Real Estate Disposition Activities"). 3/31/2021 12/31/2020 Fixed rate unsecured notes (1) $ 6,500,000 $ 6,500,000 Term Loans (1) 250,000 250,000 Fixed rate mortgage notes payable - conventional and tax-exempt (2) 380,576 408,964 Variable rate mortgage notes payable - conventional and tax-exempt (2) 470,750 470,850 Total mortgage notes payable and unsecured notes and Term Loans 7,601,326 7,629,814 Credit Facility — — Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility $ 7,601,326 $ 7,629,814 _____________________________________ (1) Balances at March 31, 2021 and December 31, 2020 exclude $9,978 and $10,380, respectively, of debt discount, and $36,263 and $37,615, respectively, of deferred financing costs, as reflected in unsecured notes, net on the accompanying Condensed Consolidated Balance Sheets. (2) Balances at March 31, 2021 and December 31, 2020 exclude $14,361 and $14,478, respectively, of debt discount, and $2,940 and $3,004, 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 three months ended March 31, 2021: • In January 2021, the Company repaid $27,795,000 principal amount of 5.37% fixed rate debt secured by Avalon San Bruno II at par in advance of its April 2021 maturity date. At March 31, 2021, the Company has 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 (0.89% at March 31, 2021), assuming a one month borrowing rate. The annual facility fee for the Credit Facility remained 0.125%, resulting in a fee of $2,188,000 annually based on the $1,750,000,000 facility size and based on the Company's current credit rating. The Company had no borrowings outstanding under the Credit Facility and had $2,613,000 and $2,900,000 outstanding in letters of credit that reduced the borrowing capacity as of March 31, 2021 and December 31, 2020, respectively. In addition, the Company had $33,482,000 and $32,079,000 outstanding in additional letters of credit unrelated to the Credit Facility as of March 31, 2021 and December 31, 2020, respectively. In the aggregate, secured notes payable mature at various dates from March 2027 through July 2066, and are secured by certain apartment communities (with a net carrying value of $1,382,452,000, excluding communities classified as held for sale, as of March 31, 2021). The weighted average interest rate of the Company's fixed rate secured notes payable (conventional and tax-exempt) was 3.8% at both March 31, 2021 and December 31, 2020. 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% at both March 31, 2021 and December 31, 2020. Scheduled payments and maturities of secured notes payable and unsecured notes outstanding at March 31, 2021 are as follows (dollars in thousands): Year Secured notes Secured notes maturities Unsecured notes and Term Loans maturities Stated interest rate of unsecured notes and Term Loans 2021 $ 8,660 $ — $ — 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 11,677 — 300,000 3.500 % 150,000 LIBOR + 0.85% 2025 12,408 — 525,000 3.450 % 300,000 3.500 % 2026 13,445 — 475,000 2.950 % 300,000 2.900 % 2027 15,880 236,100 400,000 3.350 % 2028 20,707 — 450,000 3.200 % 2029 11,742 66,250 450,000 3.300 % 2030 12,384 — 700,000 2.300 % Thereafter 176,078 245,338 600,000 2.450 % 350,000 3.900 % 300,000 4.150 % 300,000 4.350 % $ 303,638 $ 547,688 $ 6,750,000 The Company was in compliance at March 31, 2021 with customary financial covenants under the Credit Facility, the Term Loans and the Company's fixed rate unsecured notes. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity The following summarizes the changes in equity for the three months ended March 31, 2021 (dollars in thousands): Common Additional Accumulated Accumulated Total stockholder's equity Noncontrolling interests Total Balance at December 31, 2020 $ 1,395 $ 10,664,416 $ 126,022 $ (40,250) $ 10,751,583 $ 591 $ 10,752,174 Net income attributable to common stockholders — — 142,223 — 142,223 — 142,223 Cash flow hedge losses reclassified to earnings — — — 2,367 2,367 — 2,367 Change in redemption value of redeemable noncontrolling interest — — (273) — (273) — (273) Noncontrolling interest distribution and income allocation — — — — — (16) (16) Dividends declared to common stockholders ($1.59 per share) — — (221,779) — (221,779) — (221,779) Issuance of common stock, net of withholdings 1 (14,037) 958 — (13,078) — (13,078) Amortization of deferred compensation — 7,286 — — 7,286 — 7,286 Balance at March 31, 2021 $ 1,396 $ 10,657,665 $ 47,151 $ (37,883) $ 10,668,329 $ 575 $ 10,668,904 The following summarizes the changes in equity for the three months ended March 31, 2020 (dollars in thousands): Common Additional Accumulated Accumulated Total stockholder's equity Noncontrolling interests Total 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 As of March 31, 2021 and December 31, 2020, 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 three months ended March 31, 2021, the Company: i. issued 2,126 shares of common stock in connection with stock options exercised; ii. issued 839 common shares through the Company's dividend reinvestment plan; iii. issued 149,520 common shares in connection with restricted stock grants and the conversion of performance awards to restricted shares; iv. withheld 74,726 common shares to satisfy employees' tax withholding and other liabilities; and v. canceled 343 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 three months ended March 31, 2021 is not reflected on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2021, and will not be reflected until recognized as compensation cost. In July 2020, the Company’s Board of Directors voted to terminate the Company’s prior $500,000,000 Stock Repurchase Program (the "Amended 2005 Stock Repurchase Program") and approved a new stock repurchase program under which the Company may acquire shares of its common stock in open market or negotiated transactions up to an aggregate purchase price of $500,000,000 (the "2020 Stock Repurchase Program"). Purchases of common stock under the 2020 Stock Repurchase Program may be exercised from time to time in the Company’s discretion and in such amounts as market conditions warrant. The timing and actual number of shares repurchased will depend on a variety of factors, including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities. The 2020 Stock Repurchase Program does not have an expiration date and may be suspended or terminated at any time without prior notice. During the three months ended March 31, 2021, the Company had no repurchases of shares under this program. As of March 31, 2021, the Company had $316,148,000 remaining authorized for purchase under this program. 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 three months ended March 31, 2021, the Company had no sales under the program. As of March 31, 2021, the Company had $752,878,000 remaining authorized for issuance under CEP V. |
Investments in Real Estate Enti
Investments in Real Estate Entities | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021, the Company had investments in eight unconsolidated real estate entities with ownership interest percentages ranging from 20.0% to 50.0% and other unconsolidated investments. 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, including development joint ventures started and unconsolidated communities sold during the respective periods (dollars in thousands): 3/31/2021 12/31/2020 (unaudited) Assets: Real estate, net $ 1,276,766 $ 1,249,730 Other assets 248,999 255,606 Total assets $ 1,525,765 $ 1,505,336 Liabilities and partners' capital: Mortgage notes payable, net (1) $ 750,370 $ 751,257 Other liabilities 172,082 163,808 Partners' capital 603,313 590,271 Total liabilities and partners' capital $ 1,525,765 $ 1,505,336 _________________________________ (1) The Company has not guaranteed the outstanding 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 3/31/2021 3/31/2020 (unaudited) Rental and other income $ 26,398 $ 33,072 Operating and other expenses (13,631) (12,181) Interest expense, net (7,668) (8,056) Depreciation expense (8,478) (8,689) Net (loss) income $ (3,379) $ 4,146 Company's share of net income (loss) $ 61 $ 1,705 Amortization of excess investment and other (528) (530) Equity in (loss) income from unconsolidated real estate investments $ (467) $ 1,175 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 co sts incurred in pursuing the acquisition or disposition of assets for which such acquisition and disposition activity did not occur. The amount for the three months ended March 31, 2021, was a net recovery of $170,000. The amount for the three months ended March 31, 2020 was a net expense of $3,334,000. 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 months ended March 31, 2021 and 2020. The Company evaluates its for-sale condominium inventory for potential indicators of impairment, considering whether the fair value of the individual for-sale condominium units exceeds the carrying value of those units. For-sale condominium inventory is stated at cost, unless the carrying amount of the inventory is not recoverable when compared to the fair value of each unit. 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 months ended March 31, 2021 and 2020, the Company did not recognize any impairment losses on 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 months ended March 31, 2021 and 2020, the Company did not recognize any impairment charges on its investment in land. |
Real Estate Disposition Activit
Real Estate Disposition Activities | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate Disposition Activities | Real Estate Disposition Activities The following real estate sale occurred during the three months ended March 31, 2021: Community Name Location Period of sale Apartment homes Gross sales price Gain on Disposition (1) eaves Stamford Stamford, CT Q121 238 $ 72,000 $ 53,775 _________________________________ (1) Gain on disposition was reported in gain on sale of communities on the accompanying Condensed Consolidated Statements of Comprehensive Income. At March 31, 2021, the Company had one real estate asset that qualified as held for sale. The Park Loggia The Park Loggia, located in New York, NY, contains 172 for-sale residential condominiums and 66,000 square feet of commercial space. During the three months ended March 31, 2021, the Company sold 10 residential condominiums at The Park Loggia, for gross proceeds of $14,609,000, resulting in a gain in accordance with GAAP of $131,000. As of March 31, 2021, there were 92 residential condominiums remaining to be sold. The Company incurred $1,044,000 and $1,443,000 during the three months ended March 31, 2021 and 2020, respectively, in marketing, operating and administrative costs. All amounts are included in net for-sale condominium activity, on the accompanying Condensed Consolidated Statements of Comprehensive Income. As of March 31, 2021 and December 31, 2020, the unsold for-sale residential condominiums at The Park Loggia have an aggregate carrying value of $253,859,000 and $267,219,000, respectively, presented as for-sale condominium inventory on the accompanying Condensed Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Obligations The Company owns 10 apartment communities and two commercial properties, located on land subject to ground leases expiring between May 2041 and March 2142. The Company has purchase options for all ground leases expiring prior to 2060. The ground leases for nine of the 10 of the apartment communities and the rest of the ground leases are 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 operating leases. As of March 31, 2021 and December 31, 2020, the Company has total operating lease assets of $131,269,000 and $133,581,000, respectively, and lease obligations of $159,813,000 and $161,313,000, 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 $3,827,000 and $3,917,000 for the three months ended March 31, 2021 and 2020, respectively, related to operating leases. The Company has one apartment community located on land subject to a ground lease and two leases for portions of parking garages, adjacent to apartment communities, that are finance leases. As of March 31, 2021 and December 31, 2020, the Company has total finance lease assets of $21,632,000 and $21,685,000, respectively, and total finance lease obligations of $20,154,000 and $20,166,000, 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 10 apartment communities and two commercial properties, located on land subject to ground leases expiring between May 2041 and March 2142. The Company has purchase options for all ground leases expiring prior to 2060. The ground leases for nine of the 10 of the apartment communities and the rest of the ground leases are 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 operating leases. As of March 31, 2021 and December 31, 2020, the Company has total operating lease assets of $131,269,000 and $133,581,000, respectively, and lease obligations of $159,813,000 and $161,313,000, 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 $3,827,000 and $3,917,000 for the three months ended March 31, 2021 and 2020, respectively, related to operating leases. The Company has one apartment community located on land subject to a ground lease and two leases for portions of parking garages, adjacent to apartment communities, that are finance leases. As of March 31, 2021 and December 31, 2020, the Company has total finance lease assets of $21,632,000 and $21,685,000, respectively, and total finance lease obligations of $20,154,000 and $20,166,000, 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 | 3 Months Ended |
Mar. 31, 2021 | |
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, (gain) loss on extinguishment of debt, net, general and administrative expense, equity in income of unconsolidated real estate entities, depreciation expense, corporate income tax (benefit) expense, casualty and impairment (gain) loss, net, gain on sale of communities, (gain) loss on other real estate transactions, net, net for-sale condominium activity and net operating income from real estate assets sold or held for sale. The CODM evaluates the Company's financial performance on a consolidated residential and commercial basis, as the Company's commercial results attributable to the non-apartment components of the Company's mixed-use communities and other nonresidential operations represents 1.5% and 1.6% of total NOI for the three months ended March 31, 2021 and 2020, respectively. 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 months ended March 31, 2021 and 2020 is as follows (dollars in thousands): For the three months ended 3/31/2021 3/31/2020 Net income $ 142,234 $ 168,006 Indirect operating expenses, net of corporate income 24,470 22,799 Expensed transaction, development and other pursuit costs, net of recoveries (170) 3,334 Interest expense, net 52,613 55,914 (Gain) loss on extinguishment of debt, net (122) 9,170 General and administrative expense 17,352 17,320 Equity in loss (income) of unconsolidated real estate entities 467 (1,175) Depreciation expense 183,297 177,911 Income tax (benefit) expense (755) 91 Gain on sale of communities (53,727) (24,436) Gain on other real estate transactions, net (427) (43) Net for-sale condominium activity 913 (3,460) Net operating income from real estate assets sold or held for sale (1,490) (9,918) Net operating income $ 364,655 $ 415,513 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 3/31/2021 3/31/2020 Rental income from real estate assets sold or held for sale $ 2,303 $ 15,253 Operating expenses from real estate assets sold or held for sale (813) (5,335) Net operating income from real estate assets sold or held for sale $ 1,490 $ 9,918 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, 2021. Segment information for the three months ended March 31, 2021 and 2020 has been adjusted to exclude the real estate assets that were sold from January 1, 2020 through March 31, 2021, or otherwise qualify as held for sale as of March 31, 2021, as described in Note 6, "Real Estate Disposition Activities." For the three months ended Total NOI Gross real estate (1) For the period ended March 31, 2021 Established New England $ 73,318 $ 46,267 $ 2,768,546 Metro NY/NJ 104,949 71,640 4,113,854 Mid-Atlantic 82,931 56,291 3,562,330 Southeast Florida 7,241 4,189 394,451 Denver, CO 5,653 4,019 319,667 Pacific Northwest 30,669 20,666 1,232,975 Northern California 90,406 64,063 3,443,896 Southern California 107,091 72,535 4,363,141 Total Established 502,258 339,670 20,198,860 Other Stabilized 29,993 18,464 1,279,134 Development / Redevelopment 15,704 6,521 2,041,887 Land Held for Development N/A N/A 184,058 Non-allocated (2) 877 N/A 356,064 Total $ 548,832 $ 364,655 $ 24,060,003 For the period ended March 31, 2020 Established New England $ 78,845 $ 52,269 $ 2,748,893 Metro NY/NJ 112,813 79,653 4,100,221 Mid-Atlantic 90,345 65,210 3,537,207 Southeast Florida 7,504 4,126 393,025 Denver, CO 5,170 3,340 318,624 Pacific Northwest 33,480 24,306 1,225,511 Northern California 106,877 81,879 3,425,170 Southern California 117,599 84,237 4,339,176 Total Established 552,633 395,020 20,087,827 Other Stabilized 28,585 18,396 1,260,482 Development / Redevelopment 4,789 2,097 1,413,772 Land Held for Development N/A N/A 38,115 Non-allocated (2) 1,007 N/A 472,311 Total $ 587,014 $ 415,513 $ 23,272,507 __________________________________ (1) Does not include gross real estate assets held for sale of $75,814 as of March 31, 2021 and gross real estate either sold or classified as held for sale subsequent to March 31, 2020 of $435,561. (2) 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 | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans As part of its long-term compensation plans, the Company has granted stock options, performance awards and restricted stock. Details of the outstanding awards and activity are presented below. Information with respect to stock options granted under the Company's Second Amended and Restated 2009 Equity Incentive Plan (the "2009 Plan") for the three months ended March 31, 2021, is as follows: 2009 Plan Weighted average Outstanding at December 31, 2020 12,506 $ 129.35 Exercised (2,126) 121.78 Granted (1) 294,115 180.32 Forfeited — — Options Outstanding, March 31, 2021 304,495 $ 178.64 Options Exercisable, March 31, 2021 10,380 $ 130.90 __________________________________ (1) Include 4,847 options resulting from recipient elections to receive a portion of earned performance awards in the form of stock options. The Company granted stock options in 2021 with the exercise price equal to the closing stock price on the date of grant. The stock options awarded in 2021 will cliff vest in two years on March 1, 2023 and they have a ten-year term. The Company used the Black-Scholes Option Pricing model to determine the grant date fair value of options. The assumptions used are as follows: 2021 Dividend yield 3.5% Estimated volatility 27.1% Risk free rate 0.81% Expected life of options 5 years Estimated fair value $28.64 Information with respect to performance awards granted is as follows: Performance awards Weighted average grant date fair value per award Outstanding at December 31, 2020 241,921 $ 195.13 Granted (1) 137,929 191.10 Change in awards based on performance (2) (37,469) 156.00 Converted to common shares (56,545) 156.00 Forfeited — — Outstanding at March 31, 2021 285,836 $ 206.05 __________________________________ (1) The amount of common shares that ultimately may be earned is based on the total shareholder return metrics related to the Company's common stock for 69,012 performance awards and financial metrics related to operating performance, net asset value and leverage metrics of the Company for 68,917 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 2021 for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows: 2021 Dividend yield 3.5% Estimated volatility over the life of the plan (1) 22.0% - 49.0% Risk free rate 0.06% - 0.38% Estimated performance award value based on total shareholder return measure $213.16 __________________________________ (1) Estimated volatility over the life of the plan is using 50% historical volatility and 50% implied volatility. For the portion of the performance awards granted in 2021 for which achievement will be determined by using financial metrics, the compensation cost was based on a weighted average grant date value of $178.37, 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, 2020 131,724 $ 203.28 146,319 Granted - restricted stock shares 92,975 175.83 — Vested - restricted stock shares (65,213) 192.64 (71,535) Forfeited (343) 202.25 — Outstanding at March 31, 2021 159,143 $ 191.60 74,784 Total employee stock-based compensation cost recognized in income was $5,247,000 and $5,039,000 for the three months ended March 31, 2021 and 2020, respectively, and total capitalized stock-based compensation cost was $1,903,000 and $3,178,000 for the three months ended March 31, 2021 and 2020, respectively. At March 31, 2021, there was a total unrecognized compensation cost of $68,665,000 for unvested restricted stock, stock options and performance awards, which does not include forfeitures, and is expected to be recognized over a weighted average period of 2.5 years. Forfeitures are included in compensation cost as they occur. |
Related Party Arrangements
Related Party Arrangements | 3 Months Ended |
Mar. 31, 2021 | |
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 $877,000 and $1,007,000 for the three months ended March 31, 2021 and 2020, respectively. In addition, the Company had outstanding receivables associated with its property and construction management roles of $3,686,000 and $5,408,000 as of March 31, 2021 and December 31, 2020, respectively. Director Compensation The Company recorded non-employee director compensation expense relating to restricted stock grants and deferred stock units in the amount of $465,000 and $455,000 in the three months ended March 31, 2021 and 2020, 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 $227,000 and $614,000 on March 31, 2021 and December 31, 2020, respectively, reported as a component of prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021, 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 March 31, 2021 (dollars in thousands): Non-designated Hedges Interest Rate Caps Notional balance $ 410,950 Weighted average interest rate (1) 1.7 % Weighted average swapped/capped interest rate 6.1 % Earliest maturity date July 2021 Latest maturity date February 2026 ____________________________________ (1) For debt hedged by interest rate caps, represents the weighted average interest rate on the hedged debt prior to any impact of the associated interest rate caps. During the three months ended March 31, 2021, the Company terminated $150,000,000 of forward interest rate swap agreements for which hedge accounting was ceased in 2020 (the "Swaps"), receiving a payment of $6,962,000. The Company recognized $2,894,000 of these proceeds as a gain in 2020, and $2,654,000 of these proceeds as a gain during the three months ended March 31, 2021 included in interest expense, net on the accompanying Condensed Consolidated Statements of Comprehensive Income. The Company is party to five derivatives not designated as hedges at March 31, 2021 for which the fair value changes for the three months ended March 31, 2021 and 2020 were not material. 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 3/31/2021 3/31/2020 Cash flow hedge losses reclassified to earnings $ 2,367 $ 1,949 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. Redeemable Noncontrolling Interests 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. Indebtedness The Company values its fixed rate unsecured notes using quoted market prices, a Level 1 price within the fair value hierarchy. The Company values its mortgage notes payable, variable rate unsecured notes, Term Loans and outstanding amounts under the Credit Facility 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 mortgage notes payable, variable rate unsecured notes, Term Loans and outstanding amounts under the Credit Facility 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): 3/31/2021 Description Total Fair Value Quoted Prices Significant Significant Non Designated Hedges Interest Rate Caps $ 88 $ — $ 88 $ — DownREIT units (1,384) (1,384) — — Indebtedness Fixed rate unsecured notes (6,904,309) (6,904,309) — — Mortgage notes payable, variable rate unsecured notes and Term Loans (1,008,042) — (1,008,042) — Total $ (7,913,647) $ (6,905,693) $ (1,007,954) $ — 12/31/2020 Description Total Fair Value Quoted Prices Significant Significant Non Designated Hedges Interest Rate Caps $ 6 $ — $ 6 $ — Interest Rate Swaps - Assets 4,308 — 4,308 — DownREIT units (1,203) (1,203) — — Indebtedness Fixed rate unsecured notes (7,271,799) (7,271,799) — — Mortgage notes payable, variable rate unsecured notes and Term Loans (1,043,976) — (1,043,976) — Total $ (8,312,664) $ (7,273,002) $ (1,039,662) $ — |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
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 April 2021, the Company: • acquired Avalon Arundel Crossing East located in Linthicum Heights, MD, containing 384 apartment homes for a purchase price of $119,000,000; and • entered into an agreement to sell one operating community containing 299 apartment homes and net real estate of $19,558,000 as of March 31, 2021, resulting in the community qualifying as held for sale subsequent to March 31, 2021. The Company expects to complete the sale in the second quarter of 2021. As of May 5, 2021, the Company has $226,000,000 outstanding under the Credit Facility. |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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, Southeast Florida, Denver, Colorado, the Pacific Northwest, and Northern and Southern California. At March 31, 2021, the Company owned or held a direct or indirect ownership interest in 275 operating apartment communities containing 81,227 apartment homes in 11 states and the District of Columbia. In addition, the Company owned or held a direct or indirect ownership interest in 15 communities under development that are expected to contain an aggregate of 4,560 apartment homes when completed, as well as The Park Loggia, which contains 172 for-sale residential condominiums, of which 80 have been sold as of March 31, 2021, and 66,000 square feet of commercial space, of which 87% has been leased as of March 31, 2021. 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 25 communities that, if developed as expected, will contain an estimated 8,075 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 2020 Annual Report on Form 10-K. The results of operations for the three months ended March 31, 2021 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 3/31/2021 3/31/2020 Basic and diluted shares outstanding Weighted average common shares - basic 139,291,187 140,376,996 Weighted average DownREIT units outstanding 7,500 7,500 Effect of dilutive securities 253,726 393,377 Weighted average common shares - diluted 139,552,413 140,777,873 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 142,223 $ 167,971 Net income allocated to unvested restricted shares (324) (427) Net income attributable to common stockholders, adjusted $ 141,899 $ 167,544 Weighted average common shares - basic 139,291,187 140,376,996 Earnings per common share - basic $ 1.02 $ 1.19 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 142,223 $ 167,971 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 12 12 Adjusted net income attributable to common stockholders $ 142,235 $ 167,983 Weighted average common shares - diluted 139,552,413 140,777,873 Earnings per common share - diluted $ 1.02 $ 1.19 Certain options to purchase shares of common stock in the amount of 294,115 were outstanding as of March 31, 2021, but were not included in the computation of diluted earnings per share because such options were anti-dilutive for the period. |
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. |
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 | ReclassificationsCertain 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 | For-Sale Condominium Inventory The Company presents for-sale condominium inventory at historical cost and evaluates the condominiums 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 commercial 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 commercial 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. Additionally, for the Company’s residential and commercial leases, which are comprised of the lease component and common area maintenance as a non-lease component, the Company determined that (i) the leases are operating leases, (ii) the lease component is the predominant component and (iii) that all components of its operating leases share the same timing and pattern of transfer. |
Revenue from Contract with Customer | 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 commercial 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 months ended March 31, 2021 and 2020. Segment information for total revenue has been adjusted to exclude the real estate assets that were sold from January 1, 2020 through March 31, 2021, or otherwise qualify as held for sale as of March 31, 2021, as described in Note 6, "Real Estate Disposition Activities" (dollars in thousands): For the three months ended Established Other Development/ Non- Total For the three months ended March 31, 2021 Management, development and other fees $ — $ — $ — $ 877 $ 877 Rental and non-rental related income (2) 1,668 427 135 — 2,230 Total non-lease revenue (3) 1,668 427 135 877 3,107 Lease income (4) 500,590 29,566 15,569 — 545,725 Business interruption insurance proceeds — — — — — Total revenue $ 502,258 $ 29,993 $ 15,704 $ 877 $ 548,832 For the three months ended March 31, 2020 Management, development and other fees $ — $ — $ — $ 1,007 $ 1,007 Rental and non-rental related income (2) 1,633 594 51 — 2,278 Total non-lease revenue (3) 1,633 594 51 1,007 3,285 Lease income (4) 551,000 27,991 4,738 — 583,729 Business interruption insurance proceeds — — — — — Total revenue $ 552,633 $ 28,585 $ 4,789 $ 1,007 $ 587,014 __________________________________ (1) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. (2) Amounts include revenue streams related to 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. (3) Represents all revenue accounted for under ASC 606. (4) Amounts include all revenue streams derived from residential and commercial 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 March 31, 2021. |
Revenue Recognition, Leases | Lease Revenue Reserves The Company assesses the collectability of its lease revenue and receivables on an on-going basis. Under ASC 842, Lease Accounting, the Company assesses the probability of receiving all remaining lease amounts due on a lease by lease basis, reserving for revenue and the related receivables for those leases where collection of substantially all of the remaining lease payments is not probable. Subsequently, the Company will only recognize revenue to the extent cash is received. If the Company determines that collection of the remaining lease payments becomes probable at a future date, the Company will recognize the cumulative revenue that would have been recorded under the original lease agreement. In addition to the specific reserves recognized under ASC 842, the Company also evaluates its lease receivables for collectability at a portfolio level under ASC 450, Contingencies – Loss Contingencies. The Company recognizes a reserve under ASC 450 when the uncollectible revenue is probable and reasonably estimable. |
COVID-19 Pandemic | 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 effectiveness of vaccines and the rate of vaccinations, (iii) the duration and nature of governmental responses to contain the spread of the disease and assist consumers and businesses, (iv) consumer and business responses to the pandemic, including preferences for where and how to live and work, and (v) how quickly and to what extent normal economic and operating conditions can resume. Because of this uncertainty, any estimate of the expected impact of the COVID-19 pandemic on results of operations, cash flows, financial condition, or liquidity for periods beyond the three months ended March 31, 2021 is uncertain. As of March 31, 2021, 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 commercial lease portfolios. The Company recorded an aggregate offset to income for uncollectible lease revenue for its residential and commercial portfolios of $18,645,000 for the three months ended March 31, 2021 under ASC 842 and ASC 450. |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 3/31/2021 3/31/2020 Basic and diluted shares outstanding Weighted average common shares - basic 139,291,187 140,376,996 Weighted average DownREIT units outstanding 7,500 7,500 Effect of dilutive securities 253,726 393,377 Weighted average common shares - diluted 139,552,413 140,777,873 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 142,223 $ 167,971 Net income allocated to unvested restricted shares (324) (427) Net income attributable to common stockholders, adjusted $ 141,899 $ 167,544 Weighted average common shares - basic 139,291,187 140,376,996 Earnings per common share - basic $ 1.02 $ 1.19 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 142,223 $ 167,971 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 12 12 Adjusted net income attributable to common stockholders $ 142,235 $ 167,983 Weighted average common shares - diluted 139,552,413 140,777,873 Earnings per common share - diluted $ 1.02 $ 1.19 |
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 months ended March 31, 2021 and 2020. Segment information for total revenue has been adjusted to exclude the real estate assets that were sold from January 1, 2020 through March 31, 2021, or otherwise qualify as held for sale as of March 31, 2021, as described in Note 6, "Real Estate Disposition Activities" (dollars in thousands): For the three months ended Established Other Development/ Non- Total For the three months ended March 31, 2021 Management, development and other fees $ — $ — $ — $ 877 $ 877 Rental and non-rental related income (2) 1,668 427 135 — 2,230 Total non-lease revenue (3) 1,668 427 135 877 3,107 Lease income (4) 500,590 29,566 15,569 — 545,725 Business interruption insurance proceeds — — — — — Total revenue $ 502,258 $ 29,993 $ 15,704 $ 877 $ 548,832 For the three months ended March 31, 2020 Management, development and other fees $ — $ — $ — $ 1,007 $ 1,007 Rental and non-rental related income (2) 1,633 594 51 — 2,278 Total non-lease revenue (3) 1,633 594 51 1,007 3,285 Lease income (4) 551,000 27,991 4,738 — 583,729 Business interruption insurance proceeds — — — — — Total revenue $ 552,633 $ 28,585 $ 4,789 $ 1,007 $ 587,014 __________________________________ (1) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. (2) Amounts include revenue streams related to 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. (3) Represents all revenue accounted for under ASC 606. (4) Amounts include all revenue streams derived from residential and commercial 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) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020, as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, "Real Estate Disposition Activities"). 3/31/2021 12/31/2020 Fixed rate unsecured notes (1) $ 6,500,000 $ 6,500,000 Term Loans (1) 250,000 250,000 Fixed rate mortgage notes payable - conventional and tax-exempt (2) 380,576 408,964 Variable rate mortgage notes payable - conventional and tax-exempt (2) 470,750 470,850 Total mortgage notes payable and unsecured notes and Term Loans 7,601,326 7,629,814 Credit Facility — — Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility $ 7,601,326 $ 7,629,814 _____________________________________ (1) Balances at March 31, 2021 and December 31, 2020 exclude $9,978 and $10,380, respectively, of debt discount, and $36,263 and $37,615, respectively, of deferred financing costs, as reflected in unsecured notes, net on the accompanying Condensed Consolidated Balance Sheets. (2) Balances at March 31, 2021 and December 31, 2020 exclude $14,361 and $14,478, respectively, of debt discount, and $2,940 and $3,004, 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 March 31, 2021 are as follows (dollars in thousands): Year Secured notes Secured notes maturities Unsecured notes and Term Loans maturities Stated interest rate of unsecured notes and Term Loans 2021 $ 8,660 $ — $ — 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 11,677 — 300,000 3.500 % 150,000 LIBOR + 0.85% 2025 12,408 — 525,000 3.450 % 300,000 3.500 % 2026 13,445 — 475,000 2.950 % 300,000 2.900 % 2027 15,880 236,100 400,000 3.350 % 2028 20,707 — 450,000 3.200 % 2029 11,742 66,250 450,000 3.300 % 2030 12,384 — 700,000 2.300 % Thereafter 176,078 245,338 600,000 2.450 % 350,000 3.900 % 300,000 4.150 % 300,000 4.350 % $ 303,638 $ 547,688 $ 6,750,000 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Summary of changes in equity | The following summarizes the changes in equity for the three months ended March 31, 2021 (dollars in thousands): Common Additional Accumulated Accumulated Total stockholder's equity Noncontrolling interests Total Balance at December 31, 2020 $ 1,395 $ 10,664,416 $ 126,022 $ (40,250) $ 10,751,583 $ 591 $ 10,752,174 Net income attributable to common stockholders — — 142,223 — 142,223 — 142,223 Cash flow hedge losses reclassified to earnings — — — 2,367 2,367 — 2,367 Change in redemption value of redeemable noncontrolling interest — — (273) — (273) — (273) Noncontrolling interest distribution and income allocation — — — — — (16) (16) Dividends declared to common stockholders ($1.59 per share) — — (221,779) — (221,779) — (221,779) Issuance of common stock, net of withholdings 1 (14,037) 958 — (13,078) — (13,078) Amortization of deferred compensation — 7,286 — — 7,286 — 7,286 Balance at March 31, 2021 $ 1,396 $ 10,657,665 $ 47,151 $ (37,883) $ 10,668,329 $ 575 $ 10,668,904 The following summarizes the changes in equity for the three months ended March 31, 2020 (dollars in thousands): Common Additional Accumulated Accumulated Total stockholder's equity Noncontrolling interests Total 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 |
Investments in Real Estate En_2
Investments in Real Estate Entities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, including development joint ventures started and unconsolidated communities sold during the respective periods (dollars in thousands): 3/31/2021 12/31/2020 (unaudited) Assets: Real estate, net $ 1,276,766 $ 1,249,730 Other assets 248,999 255,606 Total assets $ 1,525,765 $ 1,505,336 Liabilities and partners' capital: Mortgage notes payable, net (1) $ 750,370 $ 751,257 Other liabilities 172,082 163,808 Partners' capital 603,313 590,271 Total liabilities and partners' capital $ 1,525,765 $ 1,505,336 _________________________________ (1) The Company has not guaranteed the outstanding 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 3/31/2021 3/31/2020 (unaudited) Rental and other income $ 26,398 $ 33,072 Operating and other expenses (13,631) (12,181) Interest expense, net (7,668) (8,056) Depreciation expense (8,478) (8,689) Net (loss) income $ (3,379) $ 4,146 Company's share of net income (loss) $ 61 $ 1,705 Amortization of excess investment and other (528) (530) Equity in (loss) income from unconsolidated real estate investments $ (467) $ 1,175 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of reconciliation of NOI to net income | A reconciliation of NOI to net income for the three months ended March 31, 2021 and 2020 is as follows (dollars in thousands): For the three months ended 3/31/2021 3/31/2020 Net income $ 142,234 $ 168,006 Indirect operating expenses, net of corporate income 24,470 22,799 Expensed transaction, development and other pursuit costs, net of recoveries (170) 3,334 Interest expense, net 52,613 55,914 (Gain) loss on extinguishment of debt, net (122) 9,170 General and administrative expense 17,352 17,320 Equity in loss (income) of unconsolidated real estate entities 467 (1,175) Depreciation expense 183,297 177,911 Income tax (benefit) expense (755) 91 Gain on sale of communities (53,727) (24,436) Gain on other real estate transactions, net (427) (43) Net for-sale condominium activity 913 (3,460) Net operating income from real estate assets sold or held for sale (1,490) (9,918) Net operating income $ 364,655 $ 415,513 |
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 3/31/2021 3/31/2020 Rental income from real estate assets sold or held for sale $ 2,303 $ 15,253 Operating expenses from real estate assets sold or held for sale (813) (5,335) Net operating income from real estate assets sold or held for sale $ 1,490 $ 9,918 |
Schedule of details of segment information | For the three months ended Total NOI Gross real estate (1) For the period ended March 31, 2021 Established New England $ 73,318 $ 46,267 $ 2,768,546 Metro NY/NJ 104,949 71,640 4,113,854 Mid-Atlantic 82,931 56,291 3,562,330 Southeast Florida 7,241 4,189 394,451 Denver, CO 5,653 4,019 319,667 Pacific Northwest 30,669 20,666 1,232,975 Northern California 90,406 64,063 3,443,896 Southern California 107,091 72,535 4,363,141 Total Established 502,258 339,670 20,198,860 Other Stabilized 29,993 18,464 1,279,134 Development / Redevelopment 15,704 6,521 2,041,887 Land Held for Development N/A N/A 184,058 Non-allocated (2) 877 N/A 356,064 Total $ 548,832 $ 364,655 $ 24,060,003 For the period ended March 31, 2020 Established New England $ 78,845 $ 52,269 $ 2,748,893 Metro NY/NJ 112,813 79,653 4,100,221 Mid-Atlantic 90,345 65,210 3,537,207 Southeast Florida 7,504 4,126 393,025 Denver, CO 5,170 3,340 318,624 Pacific Northwest 33,480 24,306 1,225,511 Northern California 106,877 81,879 3,425,170 Southern California 117,599 84,237 4,339,176 Total Established 552,633 395,020 20,087,827 Other Stabilized 28,585 18,396 1,260,482 Development / Redevelopment 4,789 2,097 1,413,772 Land Held for Development N/A N/A 38,115 Non-allocated (2) 1,007 N/A 472,311 Total $ 587,014 $ 415,513 $ 23,272,507 __________________________________ (1) Does not include gross real estate assets held for sale of $75,814 as of March 31, 2021 and gross real estate either sold or classified as held for sale subsequent to March 31, 2020 of $435,561. (2) 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) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity | 2009 Plan Weighted average Outstanding at December 31, 2020 12,506 $ 129.35 Exercised (2,126) 121.78 Granted (1) 294,115 180.32 Forfeited — — Options Outstanding, March 31, 2021 304,495 $ 178.64 Options Exercisable, March 31, 2021 10,380 $ 130.90 |
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, 2020 241,921 $ 195.13 Granted (1) 137,929 191.10 Change in awards based on performance (2) (37,469) 156.00 Converted to common shares (56,545) 156.00 Forfeited — — Outstanding at March 31, 2021 285,836 $ 206.05 __________________________________ (1) The amount of common shares that ultimately may be earned is based on the total shareholder return metrics related to the Company's common stock for 69,012 performance awards and financial metrics related to operating performance, net asset value and leverage metrics of the Company for 68,917 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 assumptions used are as follows: 2021 Dividend yield 3.5% Estimated volatility 27.1% Risk free rate 0.81% Expected life of options 5 years Estimated fair value $28.64 2021 Dividend yield 3.5% Estimated volatility over the life of the plan (1) 22.0% - 49.0% Risk free rate 0.06% - 0.38% Estimated performance award value based on total shareholder return measure $213.16 __________________________________ (1) Estimated volatility over the life of the plan is using 50% historical volatility and 50% implied volatility. |
Schedule of restricted stock granted | Information with respect to restricted stock granted is as follows: Restricted stock shares Restricted stock shares weighted average grant date fair value per share Restricted stock shares converted from performance awards Outstanding at December 31, 2020 131,724 $ 203.28 146,319 Granted - restricted stock shares 92,975 175.83 — Vested - restricted stock shares (65,213) 192.64 (71,535) Forfeited (343) 202.25 — Outstanding at March 31, 2021 159,143 $ 191.60 74,784 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 (dollars in thousands): Non-designated Hedges Interest Rate Caps Notional balance $ 410,950 Weighted average interest rate (1) 1.7 % Weighted average swapped/capped interest rate 6.1 % Earliest maturity date July 2021 Latest maturity date February 2026 ____________________________________ (1) For debt hedged by interest rate caps, represents the weighted average interest rate on the hedged debt prior to any impact of the associated interest rate caps. |
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 3/31/2021 3/31/2020 Cash flow hedge losses reclassified to earnings $ 2,367 $ 1,949 |
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): 3/31/2021 Description Total Fair Value Quoted Prices Significant Significant Non Designated Hedges Interest Rate Caps $ 88 $ — $ 88 $ — DownREIT units (1,384) (1,384) — — Indebtedness Fixed rate unsecured notes (6,904,309) (6,904,309) — — Mortgage notes payable, variable rate unsecured notes and Term Loans (1,008,042) — (1,008,042) — Total $ (7,913,647) $ (6,905,693) $ (1,007,954) $ — 12/31/2020 Description Total Fair Value Quoted Prices Significant Significant Non Designated Hedges Interest Rate Caps $ 6 $ — $ 6 $ — Interest Rate Swaps - Assets 4,308 — 4,308 — DownREIT units (1,203) (1,203) — — Indebtedness Fixed rate unsecured notes (7,271,799) (7,271,799) — — Mortgage notes payable, variable rate unsecured notes and Term Loans (1,043,976) — (1,043,976) — Total $ (8,312,664) $ (7,273,002) $ (1,039,662) $ — |
Organization, Basis of Presen_4
Organization, Basis of Presentation and Significant Accounting Policies (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 15 Months Ended |
Mar. 31, 2021USD ($)homeresidential_condominiumcommunitystateft² | Mar. 31, 2021homeresidential_condominiumcommunitystateft² | |
Real Estate Properties [Line Items] | ||
Number of operating apartment communities | community | 275 | 275 |
Number of apartment homes included in operating apartment communities owned | home | 81,227 | 81,227 |
Number of states where operating apartment communities owned are located | state | 11 | 11 |
Number of owned communities under construction | community | 15 | 15 |
Expected number of apartment homes under construction | home | 4,560 | 4,560 |
Number of Residential Condominium Units Sold | residential_condominium | 10 | 80 |
Communities under development rights | community | 25 | 25 |
Estimated number of apartment homes in communities to be developed | home | 8,075 | 8,075 |
Accounts Receivable, Credit Loss Expense (Reversal) | $ | $ 18,645 | |
The Park Loggia [Member] | ||
Real Estate Properties [Line Items] | ||
Number Of Residential Condominium Units | residential_condominium | 172 | 172 |
Commercial Square Feet | ft² | 66 | 66 |
Percent of Commercial Square Feet Leased | 87.00% | 87.00% |
Organization, Basis of Presen_5
Organization, Basis of Presentation and Significant Accounting Policies (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic and diluted shares outstanding | ||
Weighted average common shares - basic (in shares) | 139,291,187 | 140,376,996 |
Weighted average DownREIT units outstanding (in shares) | 7,500 | 7,500 |
Effect of dilutive securities (in shares) | 253,726 | 393,377 |
Weighted average common shares - diluted (in shares) | 139,552,413 | 140,777,873 |
Calculation of Earnings per Share - basic | ||
Net income attributable to common stockholders | $ 142,223 | $ 167,971 |
Net income allocated to unvested restricted shares | (324) | (427) |
Net income attributable to common stockholders, adjusted | $ 141,899 | $ 167,544 |
Weighted average common shares - basic (in shares) | 139,291,187 | 140,376,996 |
Earnings per common share - basic (in dollars per share) | $ 1.02 | $ 1.19 |
Calculation of Earnings per Share - diluted | ||
Net income attributable to common stockholders | $ 142,223 | $ 167,971 |
Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships | 12 | 12 |
Adjusted net income attributable to common stockholders | $ 142,235 | $ 167,983 |
Weighted average common shares - diluted (in shares) | 139,552,413 | 140,777,873 |
Earnings per common share - diluted (in dollars per share) | $ 1.02 | $ 1.19 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 294,115 |
Organization, Basis of Presen_6
Organization, Basis of Presentation and Significant Accounting Policies (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | $ 877 | $ 1,007 |
Rental and other income | 550,258 | 601,260 |
Total revenue | 551,135 | 602,267 |
Operating Segments | Established Communities | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 502,258 | 552,633 |
Operating Segments | Other Stabilized Communities | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 29,993 | 28,585 |
Non-allocated | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 877 | 1,007 |
Continuing Operations | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 3,107 | 3,285 |
Rental and other income | 545,725 | 583,729 |
Gain on Business Interruption Insurance Recovery | 0 | 0 |
Total revenue | 548,832 | 587,014 |
Continuing Operations | Management, development and other fees | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 877 | 1,007 |
Continuing Operations | Rental and non-rental related income | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 2,230 | 2,278 |
Continuing Operations | Operating Segments | Established Communities | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 1,668 | 1,633 |
Rental and other income | 500,590 | 551,000 |
Gain on Business Interruption Insurance Recovery | 0 | 0 |
Total revenue | 502,258 | 552,633 |
Continuing Operations | Operating Segments | Other Stabilized Communities | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 427 | 594 |
Rental and other income | 29,566 | 27,991 |
Gain on Business Interruption Insurance Recovery | 0 | 0 |
Total revenue | 29,993 | 28,585 |
Continuing Operations | Operating Segments | Development/ Redevelopment Communities | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 135 | 51 |
Rental and other income | 15,569 | 4,738 |
Gain on Business Interruption Insurance Recovery | 0 | 0 |
Total revenue | 15,704 | 4,789 |
Continuing Operations | Operating Segments | Management, development and other fees | Established Communities | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 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 |
Continuing Operations | Operating Segments | Management, development and other fees | Development/ Redevelopment Communities | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 0 | 0 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Established Communities | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 1,668 | 1,633 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Other Stabilized Communities | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 427 | 594 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Development/ Redevelopment Communities | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 135 | 51 |
Continuing Operations | Non-allocated | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 877 | 1,007 |
Rental and other income | 0 | 0 |
Gain on Business Interruption Insurance Recovery | 0 | 0 |
Total revenue | 877 | 1,007 |
Continuing Operations | Non-allocated | Management, development and other fees | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | 877 | 1,007 |
Continuing Operations | Non-allocated | Rental and non-rental related income | ||
Disaggregation of Revenue [Line Items] | ||
Management, development and other fees | $ 0 | $ 0 |
Interest Capitalized (Details)
Interest Capitalized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest Capitalized | ||
Capitalized interest during the development and redevelopment of real estate assets | $ 8,799 | $ 11,498 |
Mortgage Notes Payable, Unsec_3
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Notes Payable, Unsecured Notes and Credit Facility | ||
Total mortgage notes payable and unsecured notes and Term Loans | $ 7,601,326,000 | $ 7,629,814,000 |
Credit Facility | 0 | 0 |
Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility | 7,601,326,000 | 7,629,814,000 |
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 |
Total mortgage notes payable and unsecured notes and Term Loans | 6,750,000,000 | |
Amount of debt discount | 9,978,000 | 10,380,000 |
Amount of deferred financing costs, net | 36,263,000 | 37,615,000 |
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 | 380,576,000 | 408,964,000 |
Variable rate notes | 470,750,000 | 470,850,000 |
Total mortgage notes payable and unsecured notes and Term Loans | 547,688,000 | |
Amount of debt discount | 14,361,000 | 14,478,000 |
Amount of deferred financing costs, net | 2,940,000 | 3,004,000 |
Line of Credit [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Credit Facility | $ 0 | $ 0 |
Mortgage Notes Payable, Unsec_4
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details 2) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Notes Payable, Unsecured Notes and Credit Facility | |||
Credit Facility | $ 0 | $ 0 | |
Net carrying value of apartment communities and improved land parcels securing debt | 1,382,452,000 | ||
Secured Debt [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Long-term Debt, Percentage Bearing Fixed Interest, Amount | 380,576,000 | 408,964,000 | |
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 | |
Notes Payable Maturities 2021 [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.37% | ||
Line of Credit [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Available borrowing capacity | $ 1,750,000,000 | ||
Annual facility fee, percentage | 0.125% | ||
Annual facility fee | $ 2,188,000 | ||
Credit Facility | 0 | 0 | |
Outstanding balance of letters of credit | $ 2,613,000 | 2,900,000 | |
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) | 0.89% | ||
Other Letter of Credit [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Outstanding balance of letters of credit | $ 33,482,000 | $ 32,079,000 | |
Fixed Rate Mortgage Notes Payable [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Weighted average interest rate, debt (as a percent) | 3.80% | 3.80% | |
Variable Rate Mortgage Notes Payable Unsecured Term Loan and Credit Facility [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Weighted average interest rate, debt (as a percent) | 1.70% | 1.70% | |
Avalon San Bruno II | Notes Payable Maturities 2021 [Member] | Secured Debt [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Repayments of Secured Debt | $ 27,795,000 |
Mortgage Notes Payable, Unsec_5
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | |
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | $ 7,601,326 | $ 7,629,814 | |
Notes Payable Maturities 2021 [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Stated interest rate of unsecured notes (as a percent) | 5.37% | ||
Secured notes | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 303,638 | ||
Mortgage notes payable and unsecured notes | 547,688 | ||
Secured notes | Notes Payable Maturities 2021 [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 8,660 | ||
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 | 11,677 | ||
Secured notes | Notes Payable Maturities 2025 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 12,408 | ||
Secured notes | Notes Payable Maturities 2026 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 13,445 | ||
Secured notes | Notes Payable Maturities 2027 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 15,880 | ||
Mortgage notes payable and unsecured notes | 236,100 | ||
Secured notes | Notes Payable Maturities 2028 | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 20,707 | ||
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 2030 [Member] | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 12,384 | ||
Secured notes | Notes Payable Maturities Thereafter | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Secured notes payments | 176,078 | ||
Mortgage notes payable and unsecured notes | 245,338 | ||
Unsecured notes | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Mortgage notes payable and unsecured notes | 6,750,000 | ||
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 ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jul. 31, 2020 | |
Class of Stock [Line Items] | |||
Proceeds from Issuance of Common Stock | $ 11,000 | $ 125,000 | |
Changes in equity | |||
Beginning Balance | 10,752,174,000 | 10,990,198,000 | |
Net income attributable to common stockholders | 142,223,000 | 167,971,000 | |
Loss on cash flow hedges | 0 | (17,603,000) | |
Cash flow hedge losses reclassified to earnings | 2,367,000 | 1,949,000 | |
Change in redemption value of redeemable noncontrolling interest | (273,000) | 471,000 | |
Noncontrolling interest distribution and income allocation | (16,000) | (35,000) | |
Dividends, Common Stock | (221,779,000) | (224,083,000) | |
Issuance of common stock, net of withholdings | (13,078,000) | (14,107,000) | |
Amortization of deferred compensation | 7,286,000 | 7,781,000 | |
Ending Balance | $ 10,668,904,000 | $ 10,912,542,000 | |
Dividends declared to common stockholders (in dollars per share) | $ 1.59 | $ 1.59 | |
Amended 2005 Stock Repurchase Program [Member] | |||
Changes in equity | |||
Stock Repurchase Program, Authorized Amount | $ 500,000,000 | ||
Common stock | |||
Changes in equity | |||
Beginning Balance | $ 1,395,000 | $ 1,406,000 | |
Issuance of common stock, net of withholdings | 1,000 | 1,000 | |
Ending Balance | 1,396,000 | 1,407,000 | |
Additional paid-in capital | |||
Changes in equity | |||
Beginning Balance | 10,664,416,000 | 10,736,733,000 | |
Issuance of common stock, net of withholdings | (14,037,000) | (12,492,000) | |
Amortization of deferred compensation | 7,286,000 | 7,781,000 | |
Ending Balance | 10,657,665,000 | 10,732,022,000 | |
Accumulated earnings less dividends | |||
Changes in equity | |||
Beginning Balance | 126,022,000 | 282,913,000 | |
Net income attributable to common stockholders | 142,223,000 | 167,971,000 | |
Change in redemption value of redeemable noncontrolling interest | (273,000) | 471,000 | |
Dividends, Common Stock | (221,779,000) | (224,083,000) | |
Issuance of common stock, net of withholdings | 958,000 | (1,616,000) | |
Ending Balance | 47,151,000 | 225,656,000 | |
Accumulated other comprehensive loss | |||
Changes in equity | |||
Beginning Balance | (40,250,000) | (31,503,000) | |
Loss on cash flow hedges | (17,603,000) | ||
Cash flow hedge losses reclassified to earnings | 2,367,000 | 1,949,000 | |
Ending Balance | (37,883,000) | (47,157,000) | |
Parent [Member] | |||
Changes in equity | |||
Beginning Balance | 10,751,583,000 | 10,989,549,000 | |
Net income attributable to common stockholders | 142,223,000 | 167,971,000 | |
Loss on cash flow hedges | (17,603,000) | ||
Cash flow hedge losses reclassified to earnings | 2,367,000 | 1,949,000 | |
Change in redemption value of redeemable noncontrolling interest | (273,000) | 471,000 | |
Dividends, Common Stock | (221,779,000) | (224,083,000) | |
Issuance of common stock, net of withholdings | (13,078,000) | (14,107,000) | |
Amortization of deferred compensation | 7,286,000 | 7,781,000 | |
Ending Balance | 10,668,329,000 | 10,911,928,000 | |
Noncontrolling Interest [Member] | |||
Changes in equity | |||
Beginning Balance | 591,000 | 649,000 | |
Noncontrolling interest distribution and income allocation | (16,000) | (35,000) | |
Ending Balance | 575,000 | $ 614,000 | |
Continuous Equity Program CEP V [Member] | |||
Class of Stock [Line Items] | |||
Proceeds from Issuance of Common Stock | $ 0 |
Equity (Details 2)
Equity (Details 2) - USD ($) | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jul. 31, 2020 | |
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 | 2,126 | |||
Common stock issued through the dividend reinvestment plan (in shares) | 839 | 529 | ||
Number of shares of stock grants withheld (in shares) | 74,726 | 70,351 | ||
Stock issued during period, shares, share-based compensation, forfeited (in shares) | 343 | |||
Treasury Stock, Shares, Acquired | 0 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 316,148,000 | |||
Proceeds from Issuance of Common Stock | 11,000 | $ 125,000 | ||
2020 Stock Repurchase Program [Member] | ||||
Class of Stock [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 500,000,000 | |||
Amended 2005 Stock Repurchase Program [Member] | ||||
Class of Stock [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 500,000,000 | |||
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 | |||
Proceeds from Issuance of Common Stock | $ 0 | |||
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) | 149,520 | 161,229 |
Investments in Real Estate En_3
Investments in Real Estate Entities - Narrative of Investment in Real Estate Entities (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)entity | Mar. 31, 2020USD ($) | |
Land Parcel [Member] | ||
Equity method investment | ||
Impairment of Real Estate | $ 0 | $ 0 |
The Park Loggia [Member] | ||
Equity method investment | ||
Impairment of Real Estate | $ 0 | $ 0 |
Unconsolidated real estate entities | ||
Equity method investment | ||
Number of unconsolidated real estate entities | entity | 8 | |
Minimum | Unconsolidated real estate entities | ||
Equity method investment | ||
Ownership percentage | 20.00% | |
Maximum | Unconsolidated real estate entities | ||
Equity method investment | ||
Ownership percentage | 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 | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
ASSETS | |||
Real estate, net | $ 18,253,289 | $ 18,233,781 | |
Total assets | 19,120,532 | 19,199,144 | |
LIABILITIES AND EQUITY | |||
Mortgage notes payable, net | 834,025 | 862,332 | |
Partners' capital | 10,668,329 | 10,751,583 | |
Total liabilities and equity | 19,120,532 | 19,199,144 | |
Combined summary of the operating results of the accounted for using the equity method | |||
Rental and other income | 551,135 | $ 602,267 | |
Operating and other expenses | (462,430) | (463,284) | |
Interest expense, net | (52,613) | (55,914) | |
Depreciation expense | (183,297) | (177,911) | |
Net income | 142,234 | 168,006 | |
Equity Method Investment, Net Income (Loss), Portion Attributable To Parent | 61 | 1,705 | |
Equity Method Investments, Amortization Of Excess Investment And Other | (528) | (530) | |
Equity in (loss) income of unconsolidated real estate entities | (467) | 1,175 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
ASSETS | |||
Real estate, net | 1,276,766 | 1,249,730 | |
Other assets | 248,999 | 255,606 | |
Total assets | 1,525,765 | 1,505,336 | |
LIABILITIES AND EQUITY | |||
Mortgage notes payable, net | 750,370 | 751,257 | |
Other liabilities | 172,082 | 163,808 | |
Partners' capital | 603,313 | 590,271 | |
Total liabilities and equity | 1,525,765 | $ 1,505,336 | |
Combined summary of the operating results of the accounted for using the equity method | |||
Rental and other income | 26,398 | 33,072 | |
Operating and other expenses | (13,631) | (12,181) | |
Interest expense, net | (7,668) | (8,056) | |
Depreciation expense | (8,478) | (8,689) | |
Net income | $ (3,379) | $ 4,146 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Other than Temporary Impairment Losses, Investments | $ 0 | $ 0 |
Real Estate Disposition Activ_2
Real Estate Disposition Activities (Details) ft² in Thousands | 3 Months Ended | 15 Months Ended | ||
Mar. 31, 2021USD ($)residential_condominiumhomeft²community | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)residential_condominiumft²community | Dec. 31, 2020USD ($) | |
Summary of income from discontinued operations | ||||
Gains (Losses) on Sales of Investment Real Estate | $ 53,727,000 | $ 24,436,000 | ||
Number Of Communities Held For Sale | community | 1 | 1 | ||
Number of Residential Condominium Units Sold | residential_condominium | 10 | 80 | ||
Gain (Loss) on Sale of Other Investments | $ 131,000 | 4,903,000 | ||
Other Selling, General and Administrative Expense | 1,044,000 | $ 1,443,000 | ||
For-sale condominium inventory | $ 253,859,000 | $ 253,859,000 | $ 267,219,000 | |
Number of Residential Condominiums Remaining to be Sold | residential_condominium | 92 | 92 | ||
eaves Stamford | ||||
Summary of income from discontinued operations | ||||
Number Of Apartment Homes Sold | home | 238 | |||
Proceeds from Sale of Real Estate | $ 72,000,000 | |||
Gains (Losses) on Sales of Investment Real Estate | 53,775,000 | |||
The Park Loggia [Member] | ||||
Summary of income from discontinued operations | ||||
Proceeds from Sale of Real Estate | $ 14,609,000 | |||
Number Of Residential Condominium Units | residential_condominium | 172 | 172 | ||
Commercial Square Feet | ft² | 66 | 66 | ||
Gain (Loss) on Sale of Other Investments | $ 131,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)Leasecommunityproperty | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number Of Office Leases | Lease | 14 | ||
Operating lease assets | $ 131,269 | $ 133,581 | |
Operating lease obligation | 159,813 | 161,313 | |
Operating Lease, Expense | 3,827 | $ 3,917 | |
Finance lease asset | 21,632 | 21,685 | |
Finance lease obligation | $ 20,154 | $ 20,166 | |
Properties on Land Subject to Land Leases | |||
Lessee, Lease, Description [Line Items] | |||
Number Of operating apartment communities owned | community | 10 | ||
Number of commercial properties owned | property | 2 | ||
Assets Held under Operating Leases [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number Of operating apartment communities owned | community | 9 | ||
Assets Held under Finance Leases [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number Of operating apartment communities owned | community | 1 | ||
Number Of Finance Leases For Parking Garages Adjacent To Communities | Lease | 2 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reconciliation of NOI to net income | ||
Net income | $ 142,234 | $ 168,006 |
Indirect operating expenses, net of corporate income | 24,470 | 22,799 |
Other Nonoperating Income (Expense) | (170) | 3,334 |
Interest Expense | 52,613 | 55,914 |
Gain (Loss) on Extinguishment of Debt | 122 | (9,170) |
General and administrative expense | 17,352 | 17,320 |
Equity in loss (income) of unconsolidated real estate entities | 467 | (1,175) |
Depreciation expense | 183,297 | 177,911 |
Income tax (benefit) expense | (755) | 91 |
Gain on sale of communities | (53,727) | (24,436) |
Gain on other real estate transactions, net | (427) | (43) |
Net for-sale condominium activity | 913 | (3,460) |
Net operating income from real estate assets sold or held for sale | (1,490) | (9,918) |
Net operating income | $ 364,655 | $ 415,513 |
Non-Apartment Components Of Mixed-Use Communities And Other Nonresidential Operations | Operating Income (Loss) | Product Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 1.50% | 1.60% |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting [Abstract] | ||
Rental income from real estate assets sold or held for sale | $ 2,303 | $ 15,253 |
Operating expenses from real estate assets sold or held for sale | (813) | (5,335) |
Net operating income from real estate assets sold or held for sale | $ 1,490 | $ 9,918 |
Segment Reporting (Details 3)
Segment Reporting (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting | ||
Total revenue | $ 551,135 | $ 602,267 |
NOI | 364,655 | 415,513 |
Gross real estate | 24,060,003 | 23,272,507 |
Real Estate Held-For-Sale, Gross | 75,814 | |
Operating Segments | Established | ||
Segment Reporting | ||
Total revenue | 502,258 | 552,633 |
NOI | 339,670 | 395,020 |
Gross real estate | 20,198,860 | 20,087,827 |
Operating Segments | Established | New England | ||
Segment Reporting | ||
Total revenue | 73,318 | 78,845 |
NOI | 46,267 | 52,269 |
Gross real estate | 2,768,546 | 2,748,893 |
Operating Segments | Established | Metro NY/NJ | ||
Segment Reporting | ||
Total revenue | 104,949 | 112,813 |
NOI | 71,640 | 79,653 |
Gross real estate | 4,113,854 | 4,100,221 |
Operating Segments | Established | Mid-Atlantic | ||
Segment Reporting | ||
Total revenue | 82,931 | 90,345 |
NOI | 56,291 | 65,210 |
Gross real estate | 3,562,330 | 3,537,207 |
Operating Segments | Established | Southeast Florida | ||
Segment Reporting | ||
Total revenue | 7,241 | 7,504 |
NOI | 4,189 | 4,126 |
Gross real estate | 394,451 | 393,025 |
Operating Segments | Established | Denver, Colorado | ||
Segment Reporting | ||
Total revenue | 5,653 | 5,170 |
NOI | 4,019 | 3,340 |
Gross real estate | 319,667 | 318,624 |
Operating Segments | Established | Pacific Northwest | ||
Segment Reporting | ||
Total revenue | 30,669 | 33,480 |
NOI | 20,666 | 24,306 |
Gross real estate | 1,232,975 | 1,225,511 |
Operating Segments | Established | Northern California | ||
Segment Reporting | ||
Total revenue | 90,406 | 106,877 |
NOI | 64,063 | 81,879 |
Gross real estate | 3,443,896 | 3,425,170 |
Operating Segments | Established | Southern California | ||
Segment Reporting | ||
Total revenue | 107,091 | 117,599 |
NOI | 72,535 | 84,237 |
Gross real estate | 4,363,141 | 4,339,176 |
Operating Segments | Other Stabilized | ||
Segment Reporting | ||
Total revenue | 29,993 | 28,585 |
NOI | 18,464 | 18,396 |
Gross real estate | 1,279,134 | 1,260,482 |
Operating Segments | Development / Redevelopment | ||
Segment Reporting | ||
Total revenue | 15,704 | 4,789 |
NOI | 6,521 | 2,097 |
Gross real estate | 2,041,887 | 1,413,772 |
Operating Segments | Disposals [Member] | ||
Segment Reporting | ||
Gross real estate | 435,561 | |
Land Held for Future Development | ||
Segment Reporting | ||
Gross real estate | 184,058 | 38,115 |
Non-allocated | ||
Segment Reporting | ||
Total revenue | 877 | 1,007 |
Gross real estate | 356,064 | 472,311 |
Continuing Operations | ||
Segment Reporting | ||
Total revenue | 548,832 | 587,014 |
Continuing Operations | Operating Segments | Established | ||
Segment Reporting | ||
Total revenue | 502,258 | 552,633 |
Continuing Operations | Operating Segments | Other Stabilized | ||
Segment Reporting | ||
Total revenue | 29,993 | 28,585 |
Continuing Operations | Non-allocated | ||
Segment Reporting | ||
Total revenue | $ 877 | $ 1,007 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details 2) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Weighted average grant date fair value per award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (2,126) | |
Performance Shares | ||
Performance awards | ||
Equity instruments outstanding at the beginning of the period (in shares) | 241,921 | |
Equity instruments granted (in shares) | 137,929 | |
Change in awards based on performance (in shares) | (37,469) | |
Converted to restricted stock (in shares) | (56,545) | |
Forfeited (in shares) | 0 | |
Equity instruments outstanding at the end of the period (in shares) | 285,836 | |
Weighted average grant date fair value per award | ||
Equity instruments outstanding at the beginning of the period (in dollars per share) | $ 195.13 | |
Grant date fair value per share (in dollars per share) | 191.10 | |
Change in awards based on performance (in dollars per share) | 156 | |
Converted to restricted stock (in dollars per share) | 156 | |
Forfeited (in dollars per share) | 0 | |
Equity instruments outstanding at the end of the period (in dollars per share) | $ 206.05 | |
Grants in period based on total shareholder metrics | 69,012 | |
Grants in period based on financial metrics | 68,917 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Dividend yield | 3.50% | |
Employee and Directors Stock Options | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 28.64 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | |
Dividend yield | 3.50% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 27.10% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.81% | |
Employee and Directors Stock Options | Stock Option and Incentive Plan 2009 | ||
Weighted average grant date fair value per award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 304,495 | 12,506 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 10,380 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (2,126) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 180.32 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 294,115 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 178.64 | $ 129.35 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | 130.90 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 121.78 | |
Performance Options | ||
Weighted average grant date fair value per award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 4,847 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans Stock-Based Compensation Plans (Details 3) - Performance Shares | 3 Months Ended |
Mar. 31, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend yield | 3.50% |
Estimated volatility, Minimum (as a percent) | 22.00% |
Estimated volatility, Maximum (as a percent) | 49.00% |
Risk-free interest rate, minimum (as a percent) | 0.06% |
Risk-free interest rate, maximum (as a percent) | 0.38% |
Average estimated fair value (in dollars per share) | $ 213.16 |
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 | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restricted stock | ||
Restricted stock shares | ||
Equity instruments outstanding at the beginning of the period (in shares) | 131,724 | |
Equity instruments granted (in shares) | 92,975 | 64,912 |
Vested (in shares) | (65,213) | |
Forfeited (in shares) | (343) | |
Equity instruments outstanding at the end of the period (in shares) | 159,143 | |
Restricted stock shares weighted average grant date fair value per share | ||
Equity instruments outstanding at the beginning of the period (in dollars per share) | $ 203.28 | |
Grant date fair value per share (in dollars per share) | 175.83 | |
Vested (in dollars per share) | 192.64 | |
Forfeited (in dollars per share) | 202.25 | |
Equity instruments outstanding at the end of the period (in dollars per share) | $ 191.60 | |
Restricted Stock Converted From Performance Shares | ||
Restricted stock shares | ||
Equity instruments outstanding at the beginning of the period (in shares) | 146,319 | |
Equity instruments granted (in shares) | 0 | 96,317 |
Vested (in shares) | (71,535) | |
Forfeited (in shares) | 0 | |
Equity instruments outstanding at the end of the period (in shares) | 74,784 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans (Details 5) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Additional disclosures | ||
Stock-based compensation expense | $ 5,247 | $ 5,039 |
Capitalized stock-based compensation cost | $ 1,903 | $ 3,178 |
Performance Shares | ||
Additional disclosures | ||
Grant date value (in dollars per share) | $ 178.37 | |
Restricted stock and restricted stock units | ||
Additional disclosures | ||
Weighted average period for recognition of unrecognized compensation cost | 2 years 6 months | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 68,665 |
Related Party Arrangements (Det
Related Party Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Arrangements | |||
Management, development and other fees | $ 877 | $ 1,007 | |
Compensation expense | 5,247 | 5,039 | |
Unconsolidated real estate entities | |||
Related Party Arrangements | |||
Outstanding receivables | 3,686 | $ 5,408 | |
Non Employee Director | Restricted stock and deferred stock awards | |||
Related Party Arrangements | |||
Compensation expense | 465 | $ 455 | |
Amount of deferred compensation | $ 227 | $ 614 |
Fair Value (Details)
Fair Value (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)derivative | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Derivative instruments and Hedging Activities | |||
Derivative, Notional Amounts Settled During Period | $ 150,000,000 | ||
Payments for (Proceeds from) Hedge, Financing Activities | 6,962,000 | $ (20,314,000) | |
Unrealized Gain (Loss) on Derivatives | (2,654,000) | $ 0 | $ 2,894,000 |
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 | ||
Not Designated as Hedging Instrument | Interest Rate Cap | |||
Derivative instruments and Hedging Activities | |||
Derivative, Notional Amount | $ 410,950,000 |
Fair Value Fair Value (Details
Fair Value Fair Value (Details 2) - Not Designated as Hedging Instrument - Interest Rate Cap $ in Thousands | Mar. 31, 2021USD ($) |
Derivative instruments and Hedging Activities | |
Derivative, Notional Amount | $ 410,950 |
Derivative weighted average interest rate | 1.70% |
Derivative, average cap interest rate | 6.10% |
Fair Value (Details 3)
Fair Value (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Cash flow hedge losses reclassified to earnings | $ (2,367) | $ (1,949) |
Fair Value (Details 4)
Fair Value (Details 4) - Recurring basis - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Estimate of Fair Value Measurement | ||
Financial Instruments Measured/Discussed at Fair Value | ||
DownREIT units | $ (1,384) | $ (1,203) |
Total | (7,913,647) | (8,312,664) |
Unsecured notes | Estimate of Fair Value Measurement | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (6,904,309) | (7,271,799) |
Secured Debt and Variable Rate Unsecured Indebtedness | Estimate of Fair Value Measurement | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (1,008,042) | (1,043,976) |
Interest Rate Cap | Not Designated as Hedging Instrument | Estimate of Fair Value Measurement | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 88 | 6 |
Interest Rate Swap | Cash Flow Hedges | Estimate of Fair Value Measurement | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 4,308 | |
Fair Value, Inputs, Level 1 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
DownREIT units | (1,384) | (1,203) |
Total | (6,905,693) | (7,273,002) |
Fair Value, Inputs, Level 1 | Unsecured notes | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (6,904,309) | (7,271,799) |
Fair Value, Inputs, Level 2 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Total | (1,007,954) | (1,039,662) |
Fair Value, Inputs, Level 2 | Secured Debt and Variable Rate Unsecured Indebtedness | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (1,008,042) | (1,043,976) |
Fair Value, Inputs, Level 2 | Interest Rate Cap | Not Designated as Hedging Instrument | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 88 | 6 |
Fair Value, Inputs, Level 2 | Interest Rate Swap | Cash Flow Hedges | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 4,308 | |
Fair Value, Inputs, Level 3 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Total | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2021USD ($)communityhome | Mar. 31, 2021USD ($)community | May 05, 2021USD ($) | Dec. 31, 2020USD ($) | |
Subsequent Event [Line Items] | ||||
Number Of Communities Held For Sale | community | 1 | |||
Credit Facility | $ 0 | $ 0 | ||
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 April 2021, the Company: • acquired Avalon Arundel Crossing East located in Linthicum Heights, MD, containing 384 apartment homes for a purchase price of $119,000,000; and • entered into an agreement to sell one operating community containing 299 apartment homes and net real estate of $19,558,000 as of March 31, 2021, resulting in the community qualifying as held for sale subsequent to March 31, 2021. The Company expects to complete the sale in the second quarter of 2021. As of May 5, 2021, the Company has $226,000,000 outstanding under the Credit Facility. | |||
Line of Credit [Member] | ||||
Subsequent Event [Line Items] | ||||
Credit Facility | $ 0 | $ 0 | ||
Subsequent Event [Member] | Line of Credit [Member] | ||||
Subsequent Event [Line Items] | ||||
Credit Facility | $ 226,000,000 | |||
Subsequent Event [Member] | Avalon Arundel Crossing East | ||||
Subsequent Event [Line Items] | ||||
Number of Apartment Homes Acquired | home | 384 | |||
Payments to Acquire Other Real Estate | $ 119,000,000 | |||
Subsequent Event [Member] | Subsequent Event Dispositions [Member] | ||||
Subsequent Event [Line Items] | ||||
Number Of Communities Held For Sale | community | 1 | |||
Number of Apartment Homes Held For Sale | home | 299 | |||
Real Estate Investments, Net | $ 19,558,000 |