10-KPeriod: FY2002

AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2002

Filed March 11, 2003For Securities:AVB

Summary

AvalonBay Communities, Inc. (AVB) filed its 10-K for the fiscal year ended December 31, 2002, on March 11, 2003. The report highlights the company's strategy of owning and operating upscale apartment communities in high barrier-to-entry markets across the United States. AVB emphasizes its integrated approach, encompassing development, redevelopment, acquisition, and property management, aiming to deliver consistent earnings growth and long-term stockholder value through operational efficiency and strategic investments. The company detailed its portfolio as of December 31, 2002, comprising 137 operating apartment communities with 40,179 homes, alongside 12 communities under construction and rights to develop an additional 38 communities. AVB also discussed its financial strategies, including maintaining a conservative capital structure and utilizing a significant unsecured credit facility. The filing indicates a focus on disciplined capital allocation, with plans to increase disposition activity in 2003 while moderating acquisition and development efforts due to prevailing market conditions.

Key Highlights

  • 1AvalonBay Communities, Inc. (AVB) owns and operates upscale apartment communities in high barrier-to-entry U.S. markets, focusing on long-term cash flow growth.
  • 2As of December 31, 2002, AVB owned 137 operating apartment communities with 40,179 homes, plus 12 under construction and rights for 38 future developments.
  • 3The company maintains a conservative capital structure, with debt-to-total market capitalization at 46.1% as of December 31, 2002.
  • 4AVB generated total revenue of $638.966 million in 2002, with rental income being the primary driver.
  • 5Net income available to common stockholders decreased by 28.1% to $155.722 million in 2002, largely due to fewer gains on property sales and deteriorating market conditions.
  • 6The company plans to increase disposition activity in 2003 while moderating acquisition and development.
  • 7AVB reported $308.109 million in net cash provided by operating activities for 2002.

Frequently Asked Questions

AvalonBay Communities' primary strategy is to own and operate upscale apartment communities in high barrier-to-entry markets across the United States. They focus on maximizing long-term stockholder value through efficient operations, strategic development and redevelopment, and disciplined capital allocation.

As of December 31, 2002, AvalonBay owned 137 operating apartment communities totaling 40,179 homes. Additionally, they had 12 communities under construction with 3,429 homes expected upon completion and rights to develop an additional 38 communities, estimated to provide 9,950 homes.

In 2002, total revenue was $638.966 million. Net income available to common stockholders decreased by 28.1% to $155.722 million compared to 2001, primarily due to fewer gains from property sales and challenging market conditions impacting net operating income. The company generated $308.109 million in net cash from operating activities.

For 2003, AvalonBay plans to decrease acquisition and development activity compared to prior years, while increasing disposition activity. This strategy aims to realize value created in recent years and provide additional liquidity, influenced by current capital and real estate market conditions.