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AvalonBay Communities(AVB) - 2024 Q1 - Quarterly Results
AVBAvalonBay Communities(AVB)2024-04-26 10:37

Financial Performance - For Q1 2024, AvalonBay reported diluted EPS of 1.22,a16.21.22, a 16.2% increase from 1.05 in Q1 2023[2] - FFO per share for Q1 2024 was 2.73,up7.52.73, up 7.5% from 2.54 in Q1 2023, while Core FFO per share increased by 5.1% to 2.70[2]−TotalrevenueforQ12024was2.70[2] - Total revenue for Q1 2024 was 712,859, a 5.7% increase from 674,708inQ12023[28]−NetincomeattributabletocommonstockholdersforQ12024was674,708 in Q1 2023[28] - Net income attributable to common stockholders for Q1 2024 was 173,449, representing an 18.1% increase from 146,902inQ12023[28]−Fundsfromoperations(FFO)forQ12024was146,902 in Q1 2023[28] - Funds from operations (FFO) for Q1 2024 was 387,801, up 9.2% from 355,258inQ12023[28]−CoreFFOpercommonshareforQ12024was355,258 in Q1 2023[28] - Core FFO per common share for Q1 2024 was 2.70, compared to 2.57inQ12023,markinganincreaseofapproximately5.12.57 in Q1 2023, marking an increase of approximately 5.1%[69] - Residential NOI for Q1 2024 was 483,657, up from 453,814inQ12023,reflectingagrowthof6.6453,814 in Q1 2023, reflecting a growth of 6.6%[78] - Total Same Store NOI for Q1 2024 was 463,741, compared to 447,070inQ12023,indicatingagrowthof3.7447,070 in Q1 2023, indicating a growth of 3.7%[78] Revenue and Occupancy - Same Store total revenue rose by 28,005,000, or 4.3%, to 677,245,000,withSameStoreResidentialrevenueincreasingby4.2677,245,000, with Same Store Residential revenue increasing by 4.2% to 669,227,000[4] - Same store average revenue per occupied home increased to 2,967inQ12024from2,967 in Q1 2024 from 2,953 in Q4 2023[31] - Same store economic occupancy improved to 95.9% in Q1 2024 from 95.6% in Q4 2023[31] - Average occupancy rate for Q1 2024 was 95.9%, a decrease of 0.2% from Q1 2023[35] - The company reported a total of 78,377 apartment homes in its Same Store portfolio for Q1 2024[38] Operating Expenses - Same Store Residential operating expenses increased by 5.2% to 205,486,000,resultinginaSameStoreResidentialNOIincreaseof3.7205,486,000, resulting in a Same Store Residential NOI increase of 3.7% to 463,741,000[4] - Total operating expenses for Q1 2024 were 218,691,a7.0218,691, a 7.0% increase from 204,324 in Q1 2023[28] - Property taxes for Q1 2024 increased by 4.8% to 74,633,000,primarilyduetoincreasedassessmentsandtheexpirationoftaxincentiveprograms[42]−Utilitiesexpensesroseby15.974,633,000, primarily due to increased assessments and the expiration of tax incentive programs[42] - Utilities expenses rose by 15.9% to 29,239,000, largely driven by the implementation of a bulk internet offering[42] - Payroll costs for Q1 2024 were 39,703,000,a0.539,703,000, a 0.5% increase year-over-year, attributed to wage increases[42] - Repairs and maintenance expenses increased by 8.2% to 33,223,000, due to higher repair costs and increased turnover[42] Development and Construction - As of March 31, 2024, AvalonBay had 17 consolidated Development communities under construction, expected to contain 6,064 apartment homes with a total capital cost of 2.5billion[8]−Thecompanyhas17communitiescurrentlyunderdevelopment[18]−Totalcapitalcostforcommunitiesunderconstructionis2.5 billion[8] - The company has 17 communities currently under development[18] - Total capital cost for communities under construction is 2,500 million, with 6,064 apartment homes involved[48] - Average monthly revenue per home for communities under construction is 2,960[48]FinancialOutlook−ForQ22024,AvalonBayprojectsEPSbetween2,960[48] Financial Outlook - For Q2 2024, AvalonBay projects EPS between 1.60 and 1.70,withFFOpershareexpectedtorangefrom1.70, with FFO per share expected to range from 2.59 to 2.69[12]−Thefullyear2024outlookanticipatesSameStoreResidentialrevenuegrowthof2.52.69[12] - The full year 2024 outlook anticipates Same Store Residential revenue growth of 2.5% to 3.7% and Residential NOI growth of 1.1% to 3.1%[13] - The projected EPS for January 2024 is 6.52, while the projected Core FFO per share is 10.78[15]−TheprojectedEPSforApril2024is10.78[15] - The projected EPS for April 2024 is 7.18, with a projected Core FFO per share of 10.91[15]CashandDebtManagement−TheCompanyhad10.91[15] Cash and Debt Management - The Company had 287,892,000 in unrestricted cash and cash equivalents as of March 31, 2024, with no borrowings under its 2.25billionunsecuredrevolvingcreditfacility[10]−AvalonBay′sannualizedNetDebt−to−CoreEBITDAreratioforQ12024was4.3times,withUnencumberedNOIat952.25 billion unsecured revolving credit facility[10] - AvalonBay's annualized Net Debt-to-Core EBITDAre ratio for Q1 2024 was 4.3 times, with Unencumbered NOI at 95%[10] - Total debt as of March 31, 2024, is 8,043,242, with an average interest rate of 3.4%[55] - The net debt-to-core EBITDA ratio for Q1 2024 is 4.3x, while the interest coverage ratio is 7.5x[56] - Unsecured indebtedness accounts for 29.6% of total assets, which is below the covenant requirement of less than 65%[56] Market Expansion - The company is expanding into new regions including Raleigh-Durham, Charlotte, Southeast Florida, Dallas, Austin, and Denver[18] - AvalonBay operates four distinct brands: Avalon, AVA, eaves by Avalon, and Kanso, targeting different customer segments[24] Conference and Communication - The company will hold a conference call on April 26, 2024, to discuss its first quarter 2024 results[16] - The company emphasizes the importance of forward-looking statements regarding its development and acquisition activities[19] - The company provides detailed information regarding its operations and financial data through Earnings Release Attachments available on its website[17] Economic Conditions - The company's financial outlook may be impacted by rising interest rates and general economic conditions[20] - The Company expects the amount of government rent relief recognized to decline in 2024, impacting uncollectible lease revenue[92]