AvalonBay Communities(AVB) - 2024 Q3 - Quarterly Report

Financial Performance - Net income attributable to common stockholders for Q3 2024 was $372,519,000, an increase of$200,488,000, or 116.5%, from the prior year period[113]. - Total revenue for the three months ended September 30, 2024, was $734,307,000, representing a 5.3$697,635,000 in the same period last year[128]. - Net operating income (NOI) for the three months ended September 30, 2024, was $496,960,000, up from$467,062,000, reflecting a 6.0% increase[134]. - Net income for the nine months ended September 30, 2024, was $800,083,000, an increase of$113,711,000, or 16.6%, compared to the same period last year[129]. - Income from unconsolidated investments rose significantly by 1,491.7% to $30,720,000 for the three months ended September 30, 2024[128]. - The company reported a gain on the sale of communities of$172,973,000 for the three months ended September 30, 2024, compared to $22,121,000 in the prior year, marking a 681.9$410,538,000, up from $352,955,000 in Q3 2023, reflecting a 16.3$390,681,000, compared to $377,734,000 in Q3 2023, indicating a 3.4$456,664,000, an increase of $9,170,000, or 2.0$20,205,000, or 3.1%, while Residential property operating expenses rose by $11,035,000, or 5.4$233,564,000 for the three months ended September 30, 2024[128]. - Direct property operating expenses, excluding property taxes, increased by 8.2% to $151,145,000 for the three months ended September 30, 2024[128]. - Property taxes increased by$4,020,000 (5.1%) for the three months ended September 30, 2024, primarily due to newly developed apartment communities[144]. - The company experienced a decrease in property management and other indirect operating expenses, net of corporate income, to $40,149,000 for the three months ended September 30, 2024, from$33,554,000 in the prior year[134]. Development and Acquisitions - The company owned or held interest in 19 wholly-owned communities under construction, expected to contain 6,855 apartment homes with a projected total capitalized cost of $2,683,000,000[115]. - Three wholly-owned communities containing 668 apartment homes were acquired for a purchase price of$212,500,000[117]. - The company has development rights for an additional 28 apartment communities, which, if developed, will contain 9,091 apartment homes[126]. - The company has $154,906,000 in acquisition and related capitalized costs for direct interests in 8 land parcels, with an expectation to develop approximately 9,091 additional apartment homes[200]. - The company anticipates that the successful completion of all Development Rights would ultimately add approximately 9,091 apartment homes to its portfolio[200]. Liquidity and Capital Resources - The company reported cash, cash equivalents, and restricted cash of$792,477,000 as of September 30, 2024, an increase of $261,517,000 from$530,960,000 at December 31, 2023[165]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $1,279,065,000, compared to$1,213,842,000 for the same period in 2023, a 5.4% increase[165]. - The company has significant long-term liquidity needs for debt repayment, with potential refinancing through various sources including public debt offerings and equity issuances[178]. - The company expects to meet liquidity needs in 2024 through real estate dispositions, cash balances, and borrowing capacity under various financing options[186]. - The company has a Stock Repurchase Program with an authorized purchase price of $500,000,000, with$314,237,000 remaining as of October 31, 2024[174]. Debt and Financing - As of September 30, 2024, total indebtedness excluding Credit Facility and Commercial Paper is $8,044,042, with scheduled maturities totaling$4,992,812[182]. - The effective interest rates on various debt instruments range from 2.03% to 5.19%, indicating a diverse debt structure[182]. - The Credit Facility has a commitment of $2,250,000,000, with an interest rate of 5.71$44,066,000, based on a gross weighted average price of $219.92 per share[172]. - In May 2024, the company issued$400,000,000 principal amount of unsecured notes at a 5.35% interest rate, resulting in a 5.05% effective rate[179]. Risk Factors and Forward-Looking Statements - The company emphasizes the importance of reviewing "Risk Factors" in the Form 10-K and this report for understanding investment risks[203]. - Forward-looking statements include expectations regarding development, acquisition, and performance of communities, as well as potential impacts from economic conditions[204]. - The company cannot assure future results, highlighting risks that may cause actual performance to differ from expectations[205]. - Factors affecting results include potential failures in securing development opportunities and increased construction costs[206]. - There have been no material changes to market risk exposures as disclosed in the previous Annual Report[210].