AvalonBay Communities(AVB) - 2024 Q1 - Quarterly Report

Financial Performance - Total revenue for Q1 2024 was $712,859,000, an increase of 5.1% compared to $674,708,000 in Q1 2023[14] - Net income attributable to common stockholders for Q1 2024 was $173,449,000, up from $146,902,000 in Q1 2023, representing an increase of 18.1%[14] - Earnings per share (EPS) for Q1 2024 was $1.22, compared to $1.05 in Q1 2023, reflecting a growth of 16.2%[14] - Comprehensive income for Q1 2024 was $180,934,000, compared to $146,916,000 in Q1 2023, an increase of 23.2%[14] - Net income for Q1 2024 was $173,557,000, an increase of 18.2% compared to $146,775,000 in Q1 2023[21] - Funds from Operations (FFO) attributable to common stockholders increased to $387,801,000 in Q1 2024, up 9.2% from $355,258,000 in Q1 2023[143] - Core FFO attributable to common stockholders was $383,758,000 for Q1 2024, compared to $359,970,000 in Q1 2023, reflecting a growth of 6.6%[143] Expenses and Costs - Operating expenses, excluding property taxes, increased to $175,916,000 in Q1 2024 from $164,832,000 in Q1 2023, a rise of 6.5%[14] - Total expenses for Q1 2024 were $550,242,000, compared to $529,334,000 in Q1 2023, marking an increase of 3.9%[14] - Direct property operating expenses for Q1 2024 were $138,911,000, an increase of $9,082,000, or 7.0%, compared to the prior year[120] - Total community operating expenses for Q1 2024 were $218,691,000, an increase of $14,367,000, or 7.0%, from the prior year[120] - Depreciation expense increased by $7,526,000, or 3.7%, for Q1 2024 compared to Q1 2023[137] Cash Flow and Investments - Net cash provided by operating activities increased to $412,905,000 from $396,118,000, reflecting a growth of 4.5% year-over-year[21] - Cash, cash equivalents, and restricted cash at the end of Q1 2024 totaled $423,550,000, up from $376,064,000 in Q1 2023, representing a 12.6% increase[24] - The company reported a net cash used in investing activities of $265,818,000, slightly improved from $267,339,000 in the previous year[21] - The company invested $207,568,000 in development and redevelopment activities during Q1 2024[148] Equity and Dividends - The company declared dividends of $1.70 per share in Q1 2024, totaling $242,701,000[17] - Common stock dividends declared but not paid totaled $242,116,000 for Q1 2024, compared to $231,438,000 in Q1 2023[25] - The balance of total equity as of March 31, 2024, was $11,714,234,000, compared to $11,783,318,000 at the end of 2023[17] Development and Future Plans - The company owned or held interests in 299 operating apartment communities with a total of 90,673 apartment homes as of March 31, 2024[29] - The company expects to develop an additional 32 communities, potentially adding 11,167 apartment homes in the future[29] - The company owned or held interests in 17 wholly-owned communities under construction, expected to contain 6,064 apartment homes with a projected total capitalized cost of $2,500,000,000[110] - The estimated completion of the Development Communities is projected between Q2 2024 and Q3 2026, with stabilized operations expected to begin thereafter[177] Debt and Financing - As of March 31, 2024, the total principal outstanding for mortgage notes payable and unsecured notes was $8,043,242,000, reflecting a decrease of 0.01% from $8,044,042,000 as of December 31, 2023[52] - The Company has a $2,250,000,000 revolving variable rate unsecured credit facility with an interest rate of 6.15% as of March 31, 2024[52] - The Company had total Credit Facility available of $2,248,086,000 as of March 31, 2024, unchanged from December 31, 2023[54] - As of March 31, 2024, total indebtedness excluding Credit Facility and Commercial Paper is $8,044,042, with outstanding balances of $8,043,242[164] Legal and Regulatory Matters - The company is currently involved in a lawsuit filed by the District of Columbia alleging antitrust violations, which may impact future financial performance, although the outcome is uncertain at this stage[70] - The company is engaged in various legal proceedings, as disclosed in Note 7, "Commitments and Contingencies" of the Condensed Consolidated Financial Statements[192] Market and Operational Strategy - The company focuses on leading metropolitan areas characterized by growing employment in high wage sectors, higher home ownership costs, and a vibrant quality of life, aiming for superior risk-adjusted returns on apartment community investments[108] - The company anticipates that the temporary absence of future cash flows from sold communities will not materially impact its ability to fund future liquidity needs[172] - The company may invest in multifamily development projects through mezzanine loans or preferred equity investments, focusing on earning returns rather than acquiring underlying real estate[171] Stock and Shareholder Matters - The Company had $314,237,000 remaining authorized for purchase under its Stock Repurchase Program as of March 31, 2024[60] - A total of 91,446 shares were repurchased from January 1 to March 31, 2024, at an average price of $178.15 per share[196] - The company has a Stock Repurchase Program approved in July 2020, allowing for the purchase of up to $500 million of its common stock[196] Sustainability and Technology - AvalonBay's management emphasized a commitment to sustainability, aiming for a K% reduction in carbon emissions by 2025[101] - The company has invested J million in technology upgrades to improve operational efficiency and tenant experience[101]