AvalonBay Communities(AVB) - 2023 Q2 - Earnings Call Presentation

Financial Performance & Outlook - Core FFO per share year-over-year growth was 9.5% in Q2 and 11.5% year-to-date[7] - Same store residential rental revenue growth year-over-year was 6.3% in Q2 and 7.8% year-to-date[7] - The company raised $740 million in capital in Q2 and $745 million year-to-date, with a weighted average initial cost of capital of 4.2%[7] - Full year 2023 projected Core FFO per share growth revised upward from 5.3% to 7.9%[22] - Innovation plans are expected to deliver nearly $16 million of incremental NOI in 2023[40, 43, 61] Portfolio & Development - Development completions totaled $185 million with a weighted average initial projected stabilized yield of 5.9%[7] - Development starts amounted to $110 million in Q2 and $210 million year-to-date[7] - Lease-ups continue to outperform initial projections, with weighted average monthly rental revenue per home at $3,365, an 18.3% variance from initial projections of $2,845[45] Market Dynamics - AVB established regions are projected to be more insulated from new apartment supply compared to Sunbelt regions[18] - Disposition activity involved the sale of three wholly-owned communities for an aggregate sales price of approximately $340 million, at a weighted average initial market cap rate of approximately 4.7%[51, 61] ESG Initiatives - The company's 12th annual ESG report highlights progress toward creating science-based targets[53] - The company has achieved a 53% reduction in Scope 1 & 2 GHG emissions per square foot since the 2017 baseline year[56]