Skip to content

AVB · AVALONBAY COMMUNITIES INC

29 filings

10-K

AVB 10-K Annual Reports

AVALONBAY COMMUNITIES INC - 29 annual reports

Filing record · 2016–202610-K1210-Q328-K115

2025
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2025
AvalonBay Communities (AVB) closed 2025 with net income attributable to common stockholders of $1,051.3 million ($7.40 diluted EPS), down 2.8% from $1,082.0 million in 2024, mainly due to higher depreciation from newly acquired and developed communities, lower gains on real estate sales ($335.7 million vs. $363.3 million), and higher net interest expense. Operating performance was solid: Same Store Residential NOI rose 1.9% to $1,860.4 million, driven by a 2.5% increase in Residential revenue (average monthly revenue per occupied home up 2.4% to $3,062) against a 5.5% rise in Same Store operating expenses. Total NOI grew 5.8% to $2,020.9 million, and Core FFO per diluted share was $11.24, up from $11.01 in 2024. Operating cash flow increased to $1,671.1 million. The company remained active in portfolio management during 2025. It sold nine wholly-owned communities for $811.7 million, completed four developments (1,320 homes), acquired 12 communities (3,378 homes) for $826.0 million, and bought out its JV partner's 50% stake in Avalon Alderwood Place. Development remains a major driver: 24 communities (8,572 homes, about $3.3 billion projected cost) were under construction at year-end, and capital spending on development and redevelopment totaled $1.2 billion. Subsequent to year-end, the company sold Avalon Sunset Towers ($105 million) and Avalon White Plains ($166 million), and it adopted a new $1.0 billion share repurchase program on February 26, 2026, after repurchasing about $112.8 million of stock in early 2026. The balance sheet is in good shape but carries rising leverage and risk. Total debt principal was $9.39 billion at a 3.7% weighted average rate, with $1.62 billion of Credit Facility availability at January 31, 2026. Management reports compliance with its financial covenants. Key risk areas include ongoing multifamily antitrust litigation tied to RealPage (D.C., Maryland, and New Jersey suits, with the outcome unpredictable), rent-control expansion in California, Washington, and New York, and climate and insurance exposure. The quarterly dividend for Q1 2026 was raised 1.7% to $1.78 per share.
Feb 27, 2026
2024
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2024
AvalonBay Communities (AVB) closed 2024 with solid operating and earnings momentum. Net income attributable to common stockholders rose 16.5% to $1.082 billion ($7.60 diluted EPS), driven by higher NOI, $363.3 million of gains on community sales, and $50.7 million of income from unconsolidated investments. Same Store Residential NOI grew 2.7% to $1.828 billion, with Same Store residential revenue up 3.4% and average monthly revenue per occupied home up 3.5% to $3,004, while Economic Occupancy slipped slightly to 95.8%. Core FFO per diluted share was $11.01, up from $10.63 in 2023, and the company raised its quarterly dividend 2.9% to $1.75 for Q1 2025. The balance sheet remains conservative, with about $8.13 billion of debt at a 3.5% weighted average rate, roughly 96% unsecured notes, and a $2.25 billion undrawn Credit Facility (about $2.08 billion available as of January 31, 2025). In 2024 the company issued $400 million of 5.35% notes due 2034 and repaid $300 million at maturity. Liquidity is supported by forward equity contracts worth roughly $809 million for settlement by year-end 2025. Development remains a major pipeline: 17 communities (6,004 homes, about $2.25 billion projected cost) are under construction, plus 28 Development Rights representing about 8,801 future homes. In 2025 the company agreed to acquire eight Texas communities (2,701 homes) for about $618.5 million, partly via DownREIT units. Key risks flagged by management include rent-control expansion in California and New York, multifamily antitrust litigation (D.C. and Maryland suits, with an early-stage outcome that cannot be estimated), elevated interest rates and refinancing needs, rising property taxes and operating expenses, and climate and wildfire exposure in Southern California. Management also reported an effective internal control environment with an unqualified audit opinion from Ernst & Young.
Feb 27, 2025
2023
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2023
AvalonBay Communities (AVB) closed 2023 with a portfolio of 299 communities (90,669 apartment homes) and 18 under development, and continued to lean on its development-led growth model. Net income attributable to common stockholders fell 18.3% to $928.8 million ($6.56 diluted EPS) as gains on real estate sales dropped to $287.4 million from $555.6 million a year earlier. The earnings decline is largely a comparison effect from the prior year's larger disposition gains; the operating story was stronger. Same Store NOI rose 6.2% to $1.73 billion, driven by Same Store residential revenue growth of 6.3% (average monthly rental revenue per occupied home up 6.6% to $2,926), partially offset by a 6.6% increase in residential operating expenses. Core FFO per diluted share rose to $10.63 from $9.79, and the Board raised the Q1 2024 quarterly dividend 3.0% to $1.70 per share. Balance sheet and liquidity remain solid. Total debt principal was $8.04 billion at a 3.5% weighted average rate, with the $2.25 billion Credit Facility undrawn apart from $20 million of commercial paper. Management issued $400 million of 5.30% unsecured notes due 2033, repaid $600 million of fixed-rate notes and the $150 million term loan, and settled a $492 million equity forward at $245.96 per share. Operating cash flow increased to $1.56 billion from $1.42 billion. Investors should weigh several risks: a pending District of Columbia antitrust lawsuit tied to RealPage revenue-management software, which the company says it cannot yet quantify; growing rent-control pressure in California and New York; and a $33.5 million charge for abandoned development pursuits, including $27.5 million of write-offs on seven Development Rights. The company also carries a development pipeline of about $2.5 billion in projected capitalized cost across 17 communities, which adds execution and interest-rate risk.
Feb 23, 2024
2022
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2022
AvalonBay Communities (AVB) closed 2022 with strong operating momentum: net income attributable to common stockholders rose 13.2% to $1.14 billion ($8.12 diluted EPS), and Same Store Residential NOI grew 13.2% to $1.54 billion. Same Store residential rental revenue increased 10.9%, driven by a 10.8% rise in average monthly rental revenue per occupied home to $2,774, with economic occupancy essentially flat at 96.1%. Core FFO per diluted share reached $9.79, up from $8.26 in 2021, and the company declared a 3.8% increase in its Q1 2023 quarterly dividend to $1.65 per share. Portfolio activity was active in both directions. AvalonBay sold nine wholly-owned communities for $924 million, generating $555.6 million in gains, and acquired four communities for $536 million. It completed five developments (1,858 homes, $692 million capitalized cost) and has 18 wholly-owned developments under construction representing about 5,589 homes. The company also launched a Structured Investment Program offering mezzanine loans at a 9.8% weighted average return, with $29.4 million funded at year-end. Its development rights pipeline covers 39 communities and roughly 13,312 future apartment homes. The balance sheet remains conservative, with total assets of $20.5 billion, $8.4 billion of debt at a 3.4% weighted average rate, and $2.25 billion of Credit Facility capacity. Key risks flagged include rent control expansion in California and New York, inflation pressure on operating and construction costs, interest rate exposure on $607 million of variable rate debt, and a newly disclosed set of 14 purported class actions tied to the RealPage revenue management litigation, which management believes lack merit but has not yet quantified.
Feb 24, 2023
2021
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2021
AvalonBay Communities (AVB) closed 2021 with a strong earnings year driven by asset sales, while underlying residential operations softened. Net income attributable to common stockholders rose 21.3% to $1,004.3 million ($7.19 diluted EPS vs. $5.89), mainly due to a $602.2 million gain on sale of communities. However, Same Store NOI fell 4.6% to $1.37 billion, as Same Store residential rental revenue declized 2.2% amid elevated concessions (average rent fell 3.6% to $2,504) in Northern California and the New York area, partly offset by occupancy gains. Core FFO per diluted share declined to $8.26 from $8.69, and FFO per share fell to $8.13 from $8.45, so investors should weigh the headline earnings growth against weaker recurring cash-flow metrics. Development and portfolio repositioning remained central to the strategy. AvalonBay completed nine communities (2,752 homes, $1.07 billion) and started ten more (3,010 homes, $1.25 billion), while acquiring seven communities for $724.5 million (including entry into Charlotte and Dallas) and selling nine wholly owned communities for $867.2 million. The development pipeline of 17 wholly owned communities (5,386 homes, roughly $2.14 billion projected cost) and 24 Development Rights (8,070 homes) provides a multi-year source of future NOI growth, though it also carries construction and lease-up risk. Balance sheet and liquidity appear sound. Cash and equivalents rose to $543.8 million at year-end, the $1.75 billion Credit Facility was undrawn, and the company issued $1.1 billion of unsecured notes at low rates (1.90%-2.05% on new green bonds) while repaying higher-cost debt. Total debt of $8.17 billion carries a weighted fixed rate near 3.7% on secured notes, and management reported compliance with all financial covenants. Key risks include ongoing COVID-19 effects on collections and concessions, California and New York rent-control expansion, rising interest rates and LIBOR transition, and the 2022 dividend of $1.59 per quarter, which remains a major cash commitment.
Feb 25, 2022
2020
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2020
AvalonBay Communities (AVB) closed 2020 with a resilient earnings profile despite the COVID-19 shock to its apartment business. Net income attributable to common stockholders rose 5.3% to $827.6 million, driven mainly by $340.4 million of gains on sales of communities (up from $166.1 million in 2019). Underlying operations weakened: Established Communities NOI fell 6.4% to roughly $1.41 billion, rental revenue on that pool dropped 3.7%, and uncollectible lease revenue jumped to 2.18% of residential revenue from 0.53%. Consolidated total revenue declined 1.0%, while Net Operating Income for the whole portfolio fell about 3% to $1.547 billion. Core FFO per diluted share declined to $8.69 from $9.34, and FFO per diluted share fell to $8.45 from $9.18, so investors should weigh the gain-driven EPS against the weaker recurring cash earnings. Balance sheet and liquidity remain strong. AVB ended the year with $313.5 million in cash and restricted cash, a $1.75 billion undrawn revolving credit facility (only $2.9 million of letters of credit outstanding), and total debt of about $7.6 billion. The company issued $1.3 billion of unsecured notes at low fixed rates (2.30% and 2.45%) and used proceeds to repay higher-coupon notes early, incurring a $9.3 million extinguishment loss. It remained in compliance with all financial covenants, and dividends were maintained at $6.36 per share for 2020 with a $1.59 quarterly dividend declared for Q1 2021. The company repurchased 1.2 million shares for $183.9 million under a new $500 million program, with $316 million remaining. Looking forward, management highlighted a sizable development pipeline (16 consolidated communities with 5,128 homes and about $1.95 billion projected capitalized cost, plus 24 Development Rights for roughly 7,853 homes). Key risks include continued rent collection pressure, moratoria limiting evictions, rent control expansion in California and New York, and uncertainty around the pandemic's duration. Collected residential revenue was 92.9% for January 2021, which suggests collections are still below pre-pandemic norms.
Feb 25, 2021
2019
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2019
AvalonBay Communities (AVB) enters 2020 with a large, high-quality apartment portfolio concentrated in supply-constrained coastal markets. At January 31, 2020 it owned or held interests in 274 operating communities (79,636 apartment homes) across 11 states and DC, plus 22 communities under development (6,960 homes, ~$2.6 billion projected cost) and rights to 27 more (9,587 homes). Net income attributable to common stockholders fell 19.3% to $786.0 million ($5.63 diluted EPS) in 2019, mainly because 2018 included larger gains on property sales ($166.1 million in 2019 vs. $375.0 million in 2018). The underlying operating picture was steady: Established Communities NOI rose 3.1%, driven by 2.9% rental revenue growth, and Core FFO per diluted share grew to $9.34 from $9.00 (about 3.8%). Balance-sheet and capital activity were conservative. Total debt excluding the credit facility was about $7.36 billion at year-end, with fixed-rate unsecured notes making up most of it. The company raised about $1.28 billion of gross capital in 2019 through unsecured notes, common equity under its CEP IV/V programs, and asset sales, and it priced a $700 million 2.30% note offering in February 2020 to pre-fund maturities. Dividends were raised 4.6% to $1.59 per quarter for Q1 2020, an annualized $6.36. Key risks disclosed include rent control expansion in California and New York, the LIBOR-to-SOFR transition, development cost and lease-up execution, and exposure to earthquake and climate events in its West Coast markets.
Feb 21, 2020
2018-A
AVALONBAY COMMUNITIES INC Annual Report (Amendment), Year Ended Dec 31, 2018
This 10-K filing for AvalonBay Communities, Inc. (AVB) as of March 15, 2019, primarily consists of exhibits and schedules, rather than detailed financial statements or management discussion and analysis, as these are incorporated by reference to previous filings. Investors should note the extensive list of exhibits detailing the company's corporate structure, debt agreements, executive compensation plans, and subsidiary information. These documents provide critical context on the company's governance, financing, and operational framework.
Mar 15, 2019
2018
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2018
AvalonBay Communities (AVB) reported a strong 2018 in its 10-K filed February 22, 2019. Total revenue rose 5.8% to $2.28 billion, and net income attributable to common stockholders grew 11.1% to $974.5 million ($7.05 per diluted share), helped by $374.98 million of gains on community sales, including the contribution of five New York City communities to a joint venture in which AvalonBay retained a 20% stake. Core FFO per diluted share rose 4.5% to $9.00 from $8.62, and Established Communities NOI grew 2.3%, driven by a 2.5% rise in rental revenue and a 3.2% rise in operating expenses. The company continued its development-led growth strategy, with 21 communities under development totaling 6,609 apartment homes (about $2.38 billion projected cost) and 28 Development Rights for roughly 9,769 homes. Balance sheet metrics look sound: total debt principal was $7.10 billion, the $1.5 billion Credit Facility was largely undrawn ($106 million outstanding), and the company was in compliance with its covenants. Management guided to a 3.4% increase in the quarterly dividend to $1.52 per share for Q1 2019. Key risks flagged include rising rent-control activity in some municipalities, supply pressure in the Mid-Atlantic, exposure to earthquake risk on the West Coast, interest-rate sensitivity on $1.17 billion of variable-rate debt, and the Edgewater casualty-loss litigation, which management believes is largely covered by insurance.
Feb 22, 2019
2017
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2017
AvalonBay Communities (AVB) reported a 2017 that was defined by strong operating growth offset by lower one-time gains from asset sales. Net income attributable to common stockholders fell 15.2% to $876.9 million ($6.35 diluted EPS) from $1.03 billion, primarily because gains on sale of communities dropped to $252.6 million from $374.6 million and interest, depreciation, and debt extinguishment costs rose. Underlying performance improved: Established Communities NOI grew 2.5% on rental revenue growth of 2.5% and average rent growth of 2.4%, and total NOI rose 7.7% to $1.49 billion. Core FFO per diluted share increased to $8.62 from $8.19, and FFO per share rose to $8.45 from $8.26, which better reflects the operating trajectory management is emphasizing. The balance sheet and development pipeline are central to the investment case. Total assets reached $18.4 billion and total debt was $7.4 billion, with fixed-rate debt heavily weighted toward unsecured notes that were refinanced at lower coupons during 2017. The company completed 14 communities (5,189 apartment homes, $1.9 billion capitalized cost), started eight more, and ended the year with 21 communities under development (6,544 homes, roughly $3.0 billion projected cost) plus 29 Development Rights. Investors should weigh the heavy development spend against the rising interest rate environment, the 2018 dividend increase to $1.47 per quarter (3.5%), and risks including New York City supply pressure, California rent control, the Edgewater fire litigation, and the TCJA's uncertain effect on REIT taxation.
Feb 23, 2018
2016
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2016
AvalonBay Communities (AVB) closed 2016 with strong earnings and operating momentum. Net income attributable to common stockholders rose 39.3% to $1.03 billion ($7.52 diluted EPS), helped by $384.8 million of gains on real estate sales, mainly the sale of seven wholly-owned communities for $522.9 million. Core FFO per diluted share grew about 8.5% to $8.19 (from $7.55), and Established Communities NOI increased 4.8%, driven by 4.3% rental revenue growth and 4.4% higher average rents, partly offset by a slight dip in economic occupancy to 95.5%. The company remained a heavy developer. It completed 8 communities (1,715 homes, $510.8 million) and started 9 more (2,732 homes, roughly $1.59 billion expected cost). It ended the year with 27 Development Communities (9,129 homes, about $4.05 billion projected cost) and 25 Development Rights (8,487 homes). Leverage stayed moderate: total debt was about $7.08 billion, with $214.99 million in cash, no borrowings on its $1.5 billion Credit Facility, and a 2.95% to 3.90% coupon range on the new unsecured notes issued in 2016. Rising interest rate sensitivity is modest, at roughly $12.9 million of added annual interest per 100 basis points on variable-rate debt. Investors should weigh several risks alongside the growth story. Rent-control momentum in California and elsewhere is a growing concern, illustrated by the Mountain View ordinance affecting 946 homes. The Edgewater fire litigation remains open, with class actions and subrogation suits pending. A February 2017 fire at the Maplewood development community is still being assessed. Management also flagged possible federal tax reform and the GAAP-related change in how acquisitions are accounted for under ASU 2017-01. The Board raised the Q1 2017 dividend 5.2% to $1.42 per share.
Feb 24, 2017
2015
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2015
AvalonBay Communities (AVB) closed 2015 with a strong year of operating and earnings growth, driven by its core coastal apartment portfolio in New England, the NY/NJ metro, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. Net income attributable to common stockholders rose 8.6% to $742.0 million ($5.51 diluted EPS), helped by NOI growth from newly developed communities, Established Community NOI growth of 5.8%, and one-time gains from Edgewater fire insurance recoveries, debt extinguishment, and joint venture promotes. Core FFO per diluted share increased to $7.55 from $6.78, and FFO per diluted share reached $8.05. Rental revenue at Established Communities grew 5.0%, with average rental rates up 5.3% and economic occupancy slightly lower at 95.6%. The company remains in an active development cycle. It completed 13 communities (4,170 homes, $1.31 billion) in 2015, started 13 more, and held 26 communities under construction with an expected total cost of roughly $2.88 billion. Its development rights pipeline covers 32 future communities and about 9,634 homes. Balance sheet activity included $873 million of new unsecured notes, a $1.5 billion revolving credit facility extended to 2020 in January 2016, and the repayment of about $851 million of secured debt. Total debt was about $6.48 billion at year-end, and the company stated it was in compliance with its financial covenants. Key risks flagged in the filing include the Edgewater, NJ fire lawsuits (four putative class actions and 18 suits representing about 145 plaintiffs), exposure to earthquakes and severe weather in concentrated West Coast and Northeast markets, rising interest rate sensitivity on variable-rate debt, and supply pressure from elevated new apartment deliveries in New York City and Northern California. The board also raised the first-quarter 2016 dividend 8.0% to $1.35 per share.
Feb 26, 2016
2014
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2014
AvalonBay Communities (AVB) closed 2014 with a strong year on the income statement, driven largely by non-recurring gains. Net income attributable to common stockholders rose 93.6% to $683.6 million ($5.21 diluted EPS), versus $353.1 million in 2013. The increase was primarily due to $148.8 million of equity income from unconsolidated entities (including $58.1 million of promoted interest from CVP I and a $50.5 million gain on the Chrystie Place sale), $84.9 million of gains on community sales, and the absence of 2013's $51 million interest rate contract loss and Archstone-related acquisition costs. Underlying property performance was solid but more modest: Established Communities NOI grew 3.5%, with rental revenue up 3.9% on a 4.0% increase in average rents and a 0.1% dip in economic occupancy. Consolidated NOI reached $1.13 billion, up 16% from 2013, reflecting the Archstone acquisition and new development deliveries. The balance sheet and funding picture is comfortable but more levered. Total assets were $16.2 billion, with $6.4 billion of debt (about 4.5% fixed-rate mortgage cost and a 3.5% coupon on the new 2024 unsecured notes), $509 million of cash, and an undrawn $1.3 billion Credit Facility. Development remains a major growth driver: 26 communities under construction (8,524 homes, about $3.0 billion projected cost) and 37 Development Rights (10,384 homes). Investors should note several risk items disclosed after year-end: a January 2015 fire destroyed a 240-unit building at Avalon at Edgewater (under a $75 million mortgage whose lender has discretion over insurance proceeds), three purported class actions were filed, and the company forecasts substantial but not guaranteed insurance coverage. Management also declared a 7.8% dividend increase to $1.25 per quarter for Q1 2015 and has a Forward equity contract for 4.5 million shares that settles by September 2015. Overall, the headline earnings jump is largely driven by one-time gains and joint venture income, so investors should focus on same-store NOI growth (solid but slowing in several regions, with the Mid-Atlantic weak), the pipeline of new supply in urban markets, and the Edgewater casualty outcome.
Feb 19, 2015
2013
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2013
AvalonBay Communities (AVB) closed 2013 as a much larger company following the February 27, 2013 Archstone Acquisition, which the company completed jointly with Equity Residential (AVB took roughly 40% of Archstone's assets and liabilities). Total revenue rose 46.2% to $1.46 billion, and total real estate before depreciation climbed to $16.8 billion from $10.0 billion. Consolidated communities grew to 244 with 72,811 apartment homes at year-end, versus 180 communities and 52,792 homes a year earlier. Net income attributable to common stockholders fell 16.7% to $353.1 million, mainly because of a sharp rise in depreciation (driven by in-place lease intangibles amortized over six months), $45.1 million of expensed acquisition and pursuit costs, and a $51.0 million loss on a forward interest rate protection agreement. Operating fundamentals were solid: Established Community NOI grew 4.7%, rental rates rose about 4.2%, and economic occupancy held near 96%. Consolidated NOI reached $997.4 million, up 46.3%. FFO per diluted share fell to $5.05 from $5.32, though FFO itself rose to $642.8 million. The balance sheet expanded materially. Notes payable and unsecured notes reached $6.03 billion, up from $3.85 billion, and the company assumed about $3.5 billion of Archstone secured debt. Unrestricted cash fell to $281.5 million from $2.73 billion as the company used the prior year's equity proceeds to fund the deal and to repay secured debt. The $1.3 billion revolving Credit Facility was undrawn at year-end. Management also reported 29 wholly owned development communities under construction (8,708 homes, about $2.8 billion projected cost) and 46 Development Rights for 12,986 homes. The board raised the Q1 2014 quarterly dividend 8.4% to $1.16 per share, from $1.07. Lehman Brothers sold the 14.9 million shares it received in the acquisition, and in February 2014 the company sold one community (Avalon Valley) for $53.3 million. Investors should weigh the sizable integration and leverage changes against the strong same-store growth and the Mid-Atlantic and Metro New York/New Jersey supply outlook noted by management.
Mar 3, 2014
2012
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2012
AvalonBay Communities (AVB) enters 2013 as a larger, more heavily capitalized REIT, with its 10-K dominated by the pending Archstone Acquisition, expected to close in Q1 2013. The company will acquire roughly 40% of Archstone's assets and liabilities alongside Equity Residential (which takes about 60%). Consideration includes 14,889,706 AVB shares issued to Lehman, $669 million in cash, assumption of about $3.7 billion of consolidated debt (up to $1.7 billion of which AVB expects to repay at closing), and 40% of liabilities and Archstone preferred units. If the deal fails to close by March 26, 2013, AVB and Equity Residential could owe an $800 million termination fee, and the company has already prefunded much of the cash need through a $2.1 billion December 2012 equity offering. Results shown here exclude any Archstone effects, so 2012 is a pre-transaction baseline. Standalone 2012 performance was solid. Net income attributable to common stockholders was $423.9 million, down 4.0% from 2011 because of lower gains on community sales, partly offset by a 14.2% rise in NOI to $708.4 million. Established Communities NOI grew 7.6%, with rental rates up 5.6% and economic occupancy at 96.1%. FFO per diluted share rose to $5.32 from $4.57, and the company raised roughly $3.4 billion in capital during the year. Cash rose to $2.73 billion at year-end, a balance sheet position that gives the company significant liquidity but also means a large portion of it is earmarked for the Archstone closing. Total debt was $3.85 billion, with no borrowings on the $1.3 billion revolving credit facility. Key investor considerations are integration and leverage risk, and the company's ability to dispose of non-core Archstone assets, including German and non-core U.S. holdings in Florida, Georgia and Texas. Development is ramping, with 23 communities under construction representing about $1.83 billion of projected capitalized cost. The dividend was raised 10.3% to $1.07 per quarter for Q1 2013. Management also flags REIT-qualification risk tied to the Archstone structure.
Feb 22, 2013
2011
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2011
AvalonBay Communities (AVB) closed 2011 with a strong year driven by asset sales and a recovering apartment market. Net income attributable to common stockholders rose 151.9% to $441.6 million ($4.87 diluted EPS), largely due to $281.1 million of gains on sale of communities (including $122.4 million from reversing straight-line ground lease rent accruals) and a $5.1 million equity income increase. Underlying operations improved: Established Communities NOI grew 8.4%, rental revenue rose 5.1%, and economic occupancy held at 96.0%. Total revenue increased 10.8% to $968.7 million, and FFO per diluted share rose to $4.57 from $4.00. Balance sheet and liquidity strengthened materially. The company raised roughly $1.27 billion through common equity (including an August 2011 offering of 5.9 million shares at $128.25 and CEP II sales) and asset sales, used proceeds to repay higher-cost debt, and ended the year with $617 million of unrestricted cash. Total debt fell to $3.63 billion from $4.07 billion, and an undrawn $750 million Credit Facility provides additional capacity. Debt maturities are manageable, with $409 million due in 2012 (including $179 million of 5.5% notes repaid in January 2012). The company also carries an $85.5 million liability on forward-starting interest rate swaps that will be settled over the life of future debt issuances. Looking ahead, management guided 2012 diluted EPS to $4.90 to $5.20, Established Community rental revenue growth of 5.0% to 6.5%, and NOI growth of 6.0% to 8.0%, with operating expense growth of 2.5% to 3.5%. The development pipeline stands at 19 communities (5,244 homes, about $1.46 billion total cost) with planned 2012 development starts of $1.0 to $1.2 billion. Management also launched two new brands, AVA (urban, smaller units) and Eaves by Avalon (value-oriented suburban), and announced a 8.7% dividend increase to $0.97 per quarter. Key risks include the Midwest exit, Fannie Mae and Freddie Mac policy changes, rising insurance costs, the cost and availability of refinancing, and earthquake exposure on West Coast assets.
Feb 27, 2012
2010
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2010
AvalonBay Communities (AVB) closed 2010 with a stronger earnings and capital position, though the year was shaped by weak Western-region rents. Net income attributable to common stockholders rose 12.6% to $175.3 million ($2.07 diluted EPS), mainly because 2009 included debt extinguishment losses and impairments that did not recur. Established Communities NOI fell 2.8%, with East Coast regions growing while Northern California, Southern California and the Pacific Northwest declined. Management guides to 2011 diluted EPS of $3.09 to $3.34, driven largely by expected disposition gains, and projects Established Communities NOI growth of 6.0% to 7.5% on 4.0% to 5.5% rental revenue growth. The balance sheet remains conservative and liquid. Year-end unrestricted cash was $306.4 million, and the company had about $947 million of undrawn capacity on its $1 billion Credit Facility as of January 31, 2011. Total debt was about $4.07 billion, with the company reporting covenant compliance. The company raised roughly $790 million in 2010 through common equity programs, unsecured notes and asset sales, and it plans to spend $600 million to $800 million in 2011 on development, redevelopment and land. Key watch items include the Credit Facility's November 2011 expiration, which management expects to refinance at higher cost, and FFO per diluted share that fell to $4.00 from $4.07 in 2008. The risk profile is driven by the development pipeline (14 communities under construction with about $879.5 million of total capitalized cost), $7.3 billion of potential future development rights, exposure to West Coast earthquakes, and a REIT structure that requires at least 90% distribution of taxable income. The company also settled a Department of Justice accessibility lawsuit involving its New York City buildings, and management does not expect a material financial impact from it.
Feb 23, 2011
2009
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2009
AvalonBay Communities (AVB) enters 2010 with a large, high-quality apartment portfolio concentrated in high barrier-to-entry coastal markets, but 2009 was a year of sharp earnings decline and Management guides to further weakness in 2010. At December 31, 2009 the company owned or held interests in 172 communities (50,364 homes including Funds and joint ventures; 165 operating communities of 47,926 homes on a consolidated basis), plus seven communities under construction (2,438 homes, ~$813M total capitalized cost) and rights to develop 28 more communities (7,180 homes). Net income attributable to common stockholders fell 61.2% to $155.6M ($1.93 diluted EPS) from $401.0M in 2008, driven by fewer asset sales and smaller gains, a $25.9M loss on early debt repurchases, and $21.2M of land impairments, partly offset by lower abandoned pursuit costs. Funds from Operations fell to $3.89 per diluted share from $4.07. Net operating income for the whole portfolio rose slightly to $546.0M, but Established Community NOI declined 7.1% as rental revenue fell 3.7% on lower rental rates (down 3.1%) and slightly lower economic occupancy (95.6%). Looking forward, management projects 2010 diluted EPS of $1.73 and a 3.0%-4.5% decline in Established Community rental revenue, with NOI expected to fall 5.0%-7.0%, reflecting continued job losses and weak employment. The company is shifting its capital deployment toward development for a expected recovery in 2011-2012, with about $500M of 2010 disbursements planned and new starts of roughly $380M. Liquidity appears solid: the company raised over $1.7B in 2009 across secured and unsecured debt, equity (via a $400M continuous equity program) and Fund II commitments; it ended the year with $316M of unrestricted cash, cash in escrow and equivalents, and a $1.0B revolving credit facility that was undrawn at January 31, 2010 (with $955M available). Debt of about $3.98B carries a weighted-average fixed-rate profile, and the company reports covenant compliance. Key risks include job-loss-driven rent pressure on short-duration (one-year or less) leases, refinancing and interest rate exposure on about $1.27B of variable rate debt, earthquake exposure on West Coast assets, and a pending Department of Justice Fair Housing Act lawsuit tied to Avalon Chrystie Place, alongside a 2009 settlement requiring remediation of up to 8,250 apartment units.
Mar 1, 2010
2008
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2008
AvalonBay Communities (AVB) reported a 2008 10-K that combines strong full-year earnings with a sharp pivot toward defensive posture for 2009. Net income available to common stockholders rose 14.8% to $401.0 million ($5.17 diluted EPS), but that increase was driven largely by $284.9 million of gains on asset sales (11 dispositions for $646.2 million gross) rather than core operations. Established Community NOI grew 3.6% and rental revenue rose 3.1%, yet fourth-quarter trends weakened, with Q4 Established rental revenue up only 1.7%. The company posted a fourth-quarter net loss to common of $1.8 million after a $57.9 million land impairment and a 2008 non-cash charge tied to abandoning eight land parcels. Management guided to a sharp 2009 earnings decline of roughly 50% in diluted EPS, expecting Established Community rental revenue to fall 1.5% to 3.5% and NOI to drop 4.25% to 6.25%. The company has halted new development starts until at least the second half of 2009, planned only $100 million to $200 million of 2009 dispositions, and expects to increase redevelopment activity. Liquidity appears adequate: $1.0 billion revolver with $619.6 million available at January 31, 2009, $65.7 million of unrestricted cash, and a largely unencumbered balance sheet. However, total debt rose to $3.67 billion, with secured mortgage debt up sharply to $1.55 billion, and a 2009 maturity wall plus the 2009 and 2010 tender offers on 7.5% notes reflect refinancing pressure in a constrained credit market. Investors should weigh a portfolio of 164 operating communities (45,728 homes) concentrated in high barrier-to-entry coastal markets, a 2008 dividend policy that included a $1.8075 special dividend paid partly in stock, and the company's exposure to Fair Housing Act accessibility litigation covering roughly 100 communities. The 2008 earnings are largely non-recurring in nature, so the forward view is materially weaker than the headline results suggest.
Mar 2, 2009
2007
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2007
AvalonBay Communities (AVB) closed 2007 with strong earnings driven largely by asset sales. Net income available to common stockholders rose 35.5% to $349.5 million ($4.38 diluted EPS), but much of the increase came from $106.5 million in gains on discontinued community sales and roughly $60 million in gains from unconsolidated joint venture dispositions, so investors should weigh recurring operating performance separately. Core operations were healthy: Established Community rental revenue grew 5.5%, net operating income grew 7.2%, and average monthly revenue per occupied home rose to $1,767 from $1,610. Management guided to slower 2008 growth, with Established Community rental growth of 2.5% to 4.0% and NOI growth of 3.0% to 4.5%, citing a modest decline in new supply and continued renter demand. The balance sheet remained conservative, with debt at 30.3% of total market capitalization and total assets of $6.74 billion. The company is shifting toward a larger disposition program, planning $700 million to $1.0 billion of asset sales in 2008, and is slowing new development starts to $900 million to $1.1 billion, down from 2007 activity. Capital markets volatility was noted as a factor that could change funding sources, with greater use of secured debt and asset sales expected. The company also raised its quarterly dividend 5.0% to $0.8925 per share, expanded its buyback authorization to $500 million, and faces an ongoing Fair Housing Act and ADA accessibility lawsuit covering up to 100 communities. For investors, the key takeaways are solid same-store fundamentals and a sizable development pipeline of 21 communities (6,816 homes, about $2.16 billion of projected cost), balanced against slower guided growth, reliance on asset sales and gains for earnings, and exposure to construction cost and financing conditions.
Feb 29, 2008
2006-A
AVALONBAY COMMUNITIES INC Annual Report (Amendment), Year Ended Dec 31, 2006
AvalonBay Communities (AVB) filed Amendment No. 1 to its FY2006 10-K on May 10, 2007 to restate financial statements for 2004–2006. The restatement concerns the accounting for long-term land leases: the company now measures aggregate undiscounted fixed-escalation lease payments over the full non-cancelable term (not its expected holding period) for a consolidated asset with a 90-year land lease whose lessor is also the venture partner. This adds roughly $10.5 million per year of non-cash operating expense plus incremental depreciation. Net income falls by about $11.9 million in both 2006 and 2005 and about $12.0 million in 2004. Cash flows are unaffected. Net income available to common stockholders for 2006 is restated to $257.8 million (diluted EPS $3.42) versus $269.7 million (diluted EPS $3.57) as originally reported. The restatement also raises minority interest by $13.0 million and reduces equity by about $58.3 million at year-end 2006. The underlying business remained strong in the restated filing. Established Community rental revenue grew 6.8% in 2006, NOI grew 9.4%, and 2007 guidance calls for 5.0%–6.5% revenue growth and 5.5%–7.5% NOI growth. Total revenue rose 9.9% to $737.3 million. Development is expanding, with 17 communities under construction representing 5,153 apartment homes and $1.3 billion in total projected capitalized cost, and 2007 development guidance of $1.0–1.3 billion. Leverage is moderate, with debt at 22.3% of total market capitalization and fixed charge coverage of 1.82x on an incurred basis. The company also completed a roughly $594 million equity offering in January 2007 following S&P 500 inclusion. Investors should weigh the restatement's effect on reported earnings quality and the fact that the company's prior reporting for 2004–2006 should no longer be relied upon. The amendment also flags pending litigation under the Fair Housing and Americans with Disabilities Acts and a wage suit under the Fair Labor Standards Act. Growth in 2006 was driven largely by gains on asset sales and rental rate increases, while 2007 is expected to moderate.
May 10, 2007
2006
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2006
AvalonBay Communities (AVB) closed 2006 with strong operating momentum, driven by a tight apartment market in its high barrier-to-entry coastal and Northeast markets. Established Community rental revenue grew 6.8% and net operating income grew 9.1%, with Q4 2006 NOI up 10.9%, the strongest operating quarter since 2001. Diluted EPS was $3.57 and net income available to common stockholders was $269.7 million, down 14% from 2005 mainly because 2006 had fewer asset sales and smaller gains. FFO per diluted share rose to $4.38 from $3.77 in 2005, a 16% increase, and the company raised its quarterly dividend 9% to $0.85 for Q1 2007. Management guides to more moderate 2007 growth: Established Community revenue growth of 5.0% to 6.5% and NOI growth of 5.5% to 7.5%, with operating expenses rising 3.5% to 5.0%. The company is expanding development, with $1.0 to $1.3 billion of new starts planned for 2007, 17 communities under construction representing 5,153 homes, and Development Rights for about 14,185 homes. Balance sheet activity included $500 million of new unsecured notes, the repayment of $150 million of notes, and a January 2007 equity offering of about $594 million after the company joined the S&P 500. Debt-to-total market capitalization was 22.3% at year-end. Key risks include rising construction costs, a pending Fair Housing Act and ADA accessibility lawsuit covering 100 communities, a new Fair Labor Standards Act overtime suit, the 2007 expiration of TRIEA terrorism insurance backing, earthquake exposure in California, and the Fund's leverage and capital-call dependencies. Development and acquisition activity remains sensitive to capital markets and interest rates.
Mar 1, 2007
2005
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2005
AvalonBay Communities (AVB) closed 2005 with a strong year for its apartment portfolio. Net income available to common stockholders rose 48.6% to $313.7 million ($4.21 diluted EPS), driven largely by $199.8 million of gains on asset sales, including seven community dispositions for roughly $351 million and a $6.3 million gain on the sale of its Rent.com investment. Core operating results also improved: net operating income increased 10.1% to $445.1 million, and FFO per diluted share rose to $3.77 from $3.36 in 2004. Established Community rental revenue grew 3.6%, with management citing the first meaningful rental rate increases in several years and average economic occupancy of 96.1%. Management guides to continued improvement in 2006, projecting Established Community revenue growth of 5.0%-6.0% and NOI growth of 6.0%-7.0%, while expecting operating expenses to rise 3.0%-4.0%. The company is expanding its development pipeline: more than $1 billion of communities are under construction, about $3 billion of Development Rights are in hand, and 2006 development starts are planned at $700-800 million. It also expects lower disposition volume ($225-300 million) than in 2005, and the first-quarter 2006 dividend was raised 9.8% to $0.78 per share. Balance sheet risk is moderate. Debt-to-total market capitalization was 26.1% at year-end, and the company had $444.5 million available under its $500 million unsecured credit facility at January 31, 2006. Total debt of about $2.37 billion carries a mix of fixed and variable rates, and the company faces litigation over ADA/Fair Housing accessibility compliance and a California security-deposit class settlement. Earnings in 2005 were flattered by unusually large gains, so investors should focus on the recurring NOI and FFO trends when assessing sustainable performance.
Mar 14, 2006
2004
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2004
AvalonBay Communities (AVB) closed 2004 with net income available to common stockholders of $211.0 million ($2.92 diluted EPS), down 19.1% from $260.8 million in 2003, which had been inflated by high disposition gains. Net operating income rose 9.0% to $429.2 million, driven by newly developed and acquired communities, while Established Communities NOI was down 1.3%. FFO per diluted share was $3.36, up from $3.28 in 2003. The company owned or held interests in 138 operating communities with 40,142 apartment homes at year-end, plus 10 communities under construction (2,668 homes) and rights to develop 49 more (13,491 homes). Management describes 2004 as a transition year and expects 2005 revenue growth of 2.0%-4.0% for Established Communities, supported by improving apartment fundamentals in its high barrier-to-entry markets. Balance sheet leverage remained moderate, with debt-to-total market capitalization of 30.4% at December 31, 2004, and total assets of $5.07 billion. Liquidity rests on a $500 million unsecured credit facility ($181 million available at February 28, 2005) and access to capital markets, including $150 million of 5.375% notes issued in 2004 and $100 million of 4.999% notes issued in March 2005. The company also plans a discretionary investment fund targeting up to $330 million of equity commitments and roughly $940 million of investment capacity, with closing expected in early 2005. Key risks include development and redevelopment cost overruns, rising interest expense expected in 2005, a California earthquake exposure, and a pending class action over security deposits. The company is a REIT that distributed a $2.80 annual dividend in 2004, with the Q1 2005 dividend raised 1.4% to $0.71 per share.
Mar 15, 2005
2003
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2003
AvalonBay Communities (AVB) enters 2004 as a high-quality apartment REIT whose earnings were flattered in 2003 by large one-time gains, while the underlying core business softened. Net income available to common stockholders rose 67.5% to $260.8 million ($3.73 diluted EPS), but this was driven by $161.0 million of gains on community sales and a $23.4 million share of a joint venture sale gain. Net operating income from the 131 current communities fell 0.4% to $405.4 million, and Established Communities NOI (same-store) dropped 8.3%, as weak job markets in Northern California and the Northeast pushed rental rates down (average rent per occupied home fell 4.5%) and concessions roughly doubled. FFO per diluted share declined to $3.27 from $3.55 in 2002 and $3.95 in 2001, which is the more relevant measure of recurring earnings power. Management describes 2003 as late in the cycle, with rents resetting lower, and guides to a transition year in 2004: Established Communities revenue down as much as 2.0% and NOI down up to 4.0%, with stabilization expected as job growth returns. The company pivoted in 2003 from acquisitions to dispositions, selling twelve communities for about $404 million in net proceeds, and plans to reduce sales and increase development and acquisitions in 2004. Leverage is moderate, with debt at 39.9% of total market capitalization, and liquidity is adequate with $247.6 million available under a $500 million unsecured credit facility at February 27, 2004. Near-term items to watch include the facility's May 2004 maturity, $125 million of unsecured notes repaid in February 2004, and the York Hunter construction litigation.
Mar 5, 2004
2002-A
AVALONBAY COMMUNITIES INC Annual Report (Amendment), Year Ended Dec 31, 2002
AvalonBay Communities (AVB) filed this Form 10-K/A on July 23, 2003 to amend its FY2002 10-K, primarily to restate historical financials under SFAS No. 144 so that communities sold or designated held-for-sale in early 2003 are presented as discontinued operations. The amendment does not change reported net income available to common stockholders ($155.7 million, or $2.26 basic EPS) or FFO ($258.2 million), but it reduces reported continuing revenue and NOI and shifts gains into discontinued operations. The company's portfolio at February 1, 2003 comprised 137 operating communities with 40,179 apartment homes, plus 12 communities under development (3,429 homes) and rights to 38 future communities (9,950 homes), concentrated in high barrier-to-entry markets in the Northeast, Mid-Atlantic, Northern and Southern California, and the Pacific Northwest. 2002 was a difficult year: Established Community NOI fell 10.3%, with Northern California (-17.5%) and the Northeast (-8.5%) hit hardest by technology and financial-sector job losses. Average economic occupancy in Established Communities declined from 95.5% to 93.5%, and average rental rates fell as concessions rose. Management expects weak demand to persist through most of 2003, and plans to accelerate dispositions and reduce acquisitions and development. Balance sheet and liquidity remain conservative by REIT standards, with debt-to-total market capitalization of 46.1% at year-end 2002, a $500 million unsecured credit facility with $329 million available at February 28, 2003, and mostly unsecured fixed-rate notes. Net cash from operations fell to $307.8 million. The company repurchased common stock under a $100 million program, redeemed Series C and I preferred shares, and announced the redemption of Series D preferred. A $6.8 million impairment was recorded on two land parcels, and the company changed auditors from Arthur Andersen to Ernst & Young.
Jul 23, 2003
2002
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2002
AvalonBay Communities (AVB) reported a difficult 2002 as weakening demand in its high barrier-to-entry markets pushed rents and occupancy lower. Total revenue rose 0.8% to $639.0 million, but net operating income (NOI) fell 3.8% to $438.2 million, driven by a 9.9% decline in Established Communities NOI, with Northern California (-17.5%) and Northeast (-8.5%) hit hardest. Net income available to common stockholders fell 28.1% to $155.7 million ($2.23 diluted EPS, versus $3.12 in 2001), largely because 2001 included larger gains on community sales and 2002 had fewer. Funds from Operations (FFO) declined to $258.2 million from $283.3 million. Management characterized the company as in a downturn of the business cycle and expects weak demand to persist through most of 2003. Balance sheet and capital allocation were the other focus. Debt-to-total market capitalization was 46.1% at year-end, with $1.985 billion of unsecured notes outstanding and $155.5 million drawn on a $500 million unsecured credit facility as of February 28, 2003. Management is shifting capital toward dispositions and away from acquisitions and development, having authorized a $100 million stock repurchase program (about $77.4 million used through February 2003), redeemed Series C and I preferred stock, and announced redemption of the 8.00% Series D preferred. The company also faces a $100 million unsecured note maturity during the remainder of 2003 and a pending York Hunter construction litigation with a trial set for April 2003. The development pipeline remains sizable: 12 communities (3,429 homes, about $645.7 million budgeted) under construction, two redevelopments, and 38 development rights representing 9,950 potential homes. Investors should weigh a strong asset base and conservative leverage against near-term earnings pressure from falling rents, rising insurance and bad-debt costs, and the company's reliance on asset sales to fund its plans.
Mar 11, 2003
2001
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2001
AvalonBay Communities (AVB) closed 2001 with strong top- and bottom-line growth, but the 10-K signals a clear shift in tone toward a slower 2002. Total revenue rose 11.9% to $641.7 million and net income available to common stockholders rose 26.7% to $216.5 million ($3.12 diluted EPS, up from $2.53). Growth was driven by a $62.9 million gain on community sales, newly developed and redeveloped communities, and 6.6% rental revenue growth at Established Communities. Net operating income rose 11.4% to $427.6 million. FFO rose to $283.3 million from $252.0 million, a meaningful increase, though it is a non-GAAP measure and the gain on sale is excluded from it. Management's forward-looking commentary is more cautious. The company expects Established Community NOI to decline in the first half of 2002 as the recession takes hold, with modest growth only if the economy recovers in the second half. Monthly revenue per occupied home and occupancy may fall in 2002. Northern California, roughly 37% of Established rental revenue, saw market rents fall about 22% in 2001. Insurance costs are expected to rise by roughly $9.2 million in 2002, and asset sales will be significantly curtailed, which should reduce gains and extend depreciation growth. Balance sheet and capital position remain conservative. Debt to total market capitalization was 37.1% at year-end, with $1.635 billion of unsecured notes, a $500 million undrawn credit facility (about $414 million available at March 1, 2002), and $2.08 billion total indebtedness. Development is substantial: 15 communities (3,963 homes, about $750 million budgeted) are under construction and 30 Development Rights (8,918 homes) are being pursued. Investors should weigh the strong 2001 earnings, which were boosted by asset-sale gains, against the expected 2002 softening in core operating income and the execution risk on the development pipeline.
Mar 26, 2002
1998
AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 1998
AvalonBay Communities (AVB), formerly Bay Apartment Communities, closed 1998 as a substantially larger REIT after its June 4, 1998 merger with Avalon Properties. The company owned or held interests in 127 apartment communities with 37,910 homes at March 1, 1999, plus 14 communities under development (3,262 homes) and rights to develop 27 more (7,239 homes). Its strategy centers on institutional-quality apartments in high barrier-to-entry markets, concentrated in Northern and Southern California and expanded into the Mid-Atlantic, Northeast, Midwest, and Pacific Northwest. Full-year 1998 net income rose to $94.4 million from $38.9 million, and FFO rose to $144.2 million from $62.4 million, largely reflecting the merger. Per-share figures are less comparable, with diluted net income of $1.37 versus $1.40 in 1997 because of the expanded share count. The balance sheet grew to $4.03 billion in total assets, with debt-to-total market capitalization at 35.7%. The company issued $710 million of unsecured senior notes in 1998 and $125 million of medium-term notes in January 1999, and it relies on a $600 million unsecured credit facility of which $284.3 million was available at March 1, 1999. Management flagged a tighter capital market since late 1998, a planned disposition program for non-core assets, and a management realignment that will produce an estimated $16 million non-recurring charge in Q1 1999, with about $3.5 million in annual savings. Investors should also weigh softening in certain Silicon Valley-dependent Northern California submarkets since October 1998, and the risks inherent in $1.06 billion of development rights and ongoing redevelopment.
Mar 31, 1999