10-KPeriod: FY2015

AVALONBAY COMMUNITIES INC Annual Report, Year Ended Dec 31, 2015

Filed February 26, 2016For Securities:AVB

Summary

AvalonBay Communities Inc. (AVB) reported strong operational performance in its 2015 10-K filing. The company, a REIT focused on developing, acquiring, owning, and operating multifamily apartment communities, experienced growth across its portfolio. Net income attributable to common stockholders increased by 8.6% to $742.0 million, driven by higher rental income from new and existing communities and gains from insurance recoveries and debt extinguishment. The company's portfolio expanded to 285 communities with 83,696 apartment homes. AVB's strategic focus on high-growth metropolitan areas with strong employment in high-wage sectors continues to yield positive results, with Established Communities showing a 5.8% increase in Net Operating Income (NOI). The company actively manages its portfolio through development, redevelopment, acquisition, and disposition strategies. During 2015, AVB completed the development of 13 communities, adding 4,170 apartment homes, and began development on another 13. The company also maintained a disciplined approach to capital management, raising approximately $1.82 billion through various financing activities, including unsecured notes and equity. AVB's strong balance sheet and access to capital markets are highlighted, positioning it well for future growth and shareholder value creation.

Financial Highlights

33 data points
Beta

Revenue

$1.86B

Net Income

$742.04M

40.0% Net Margin

EPS (Diluted)

$5.51

Total Assets

$16.93B

Cash & Equivalents

$400.51M

Free Cash Flow

$1.07B

Financial Statements
Beta
Revenue$1.86B
Operating Expenses$1.31B
Operating Income$1.22B
Interest Expense$175.62M
Net Income$742.04M
EPS (Basic)$5.54
EPS (Diluted)$5.51
Shares Outstanding (Basic)133.57M
Shares Outstanding (Diluted)134.59M

Key Highlights

  • 1Net income attributable to common stockholders increased by 8.6% to $742.0 million in 2015.
  • 2Net Operating Income (NOI) from Established Communities increased by 5.8%.
  • 3The company's portfolio grew to 285 communities with 83,696 apartment homes.
  • 4AVB completed the development of 13 communities (4,170 homes) in 2015 and started development on 13 new communities.
  • 5Total revenue increased by 10.1% to $1.86 billion in 2015.
  • 6The company raised approximately $1.82 billion in gross capital through various financing activities.
  • 7A dividend increase of 8.0% was announced for the first quarter of 2016.

Frequently Asked Questions

AvalonBay Communities Inc. is a real estate investment trust (REIT) that develops, redevelops, acquires, owns, and operates multifamily apartment communities. Their strategy focuses on leading metropolitan areas with strong employment in high-wage sectors, lower housing affordability, and a vibrant quality of life.

In 2015, AvalonBay reported a net income attributable to common stockholders of $742.0 million, an 8.6% increase from the prior year. This growth was driven by higher rental income from new and existing communities, gains from insurance recoveries, and debt extinguishment, partially offset by a decrease in income from unconsolidated real estate entities.

AvalonBay grows its portfolio through a multi-faceted strategy including developing new communities, redeveloping existing ones, acquiring new properties, and selectively disposing of assets that no longer align with its long-term strategy. In 2015, they completed 13 development projects and began 13 new ones.

AvalonBay identifies several key risks, including those associated with development, redevelopment, and construction activities (e.g., cost overruns, delays). They also face risks from unfavorable market and economic conditions, changes in laws and regulations, competition, interest rate fluctuations, and the potential for significant uninsured property or liability losses.