Summary
AvalonBay Communities, Inc. (AVB) reported strong financial performance for the fiscal year ended December 31, 2011, demonstrating significant growth in net income attributable to common stockholders, primarily driven by increased gains on the sale of communities and higher Net Operating Income (NOI) from its established portfolio. The company benefited from improved apartment market fundamentals, characterized by modest employment growth and limited new supply, leading to an 8.4% increase in NOI for its Established Communities. AVB continues to focus on its core strategy of developing, acquiring, owning, and operating multifamily communities in high barrier-to-entry markets, emphasizing a balanced portfolio across various customer segments and price points. The company also announced new branding segmentation with 'AVA' and 'Eaves by Avalon' to better target diverse renter needs. Looking ahead, AVB anticipates further growth in diluted Earnings Per Share (EPS) for 2012, projecting an increase driven by expected real estate dispositions and continued NOI growth. The company successfully raised approximately $1.265 billion in capital during 2011 through equity and asset sales to fund its investment activities and strengthen its balance sheet. AVB's development pipeline remains robust, with 19 communities under construction, and the company plans significant capital deployment in new development starts and redevelopment projects for 2012, signaling confidence in future market conditions.
Financial Highlights
32 data points| Revenue | $900.09M |
| Operating Expenses | $778.71M |
| Operating Income | $599.93M |
| Interest Expense | $167.81M |
| Net Income | $441.62M |
| EPS (Basic) | $4.89 |
| EPS (Diluted) | $4.87 |
| Shares Outstanding (Basic) | 89.92M |
| Shares Outstanding (Diluted) | 90.78M |
Key Highlights
- 1Net income attributable to common stockholders increased by 151.9% to $441.6 million in 2011, significantly driven by higher gains on community sales and improved NOI.
- 2Established Communities reported an 8.4% increase in NOI year-over-year, reflecting strong rental revenue growth and controlled operating expenses.
- 3The company successfully raised approximately $1.265 billion in capital during 2011 through equity offerings and asset sales to fund growth and strengthen its financial position.
- 4AVB is actively expanding its development pipeline, with 19 communities under construction and plans for substantial new development starts and redevelopment projects in 2012.
- 5Introduction of two new apartment brands, 'AVA' and 'Eaves by Avalon', to better target different customer segments and enhance market penetration.
- 6Weighted average monthly revenue per occupied apartment home increased to $1,911 in 2011, up from $1,823 in 2010, indicating favorable rent growth.
- 7The company maintained a strong credit position, with a $750 million unsecured credit facility, and was in compliance with all financial covenants.