Summary
AvalonBay Communities, Inc. (AVB) reported a net loss of $10.7 million for the third quarter of 2013, a significant decrease from the $86.8 million net income in the same period last year. This was largely due to increased depreciation expenses and expensed transaction costs related to the substantial Archstone Acquisition completed in February 2013, as well as a loss on an interest rate protection agreement. Despite the net loss, the company highlighted strong underlying operating performance, with Net Operating Income (NOI) from its Established Communities increasing by 4.2% year-over-year, driven by a 3.9% rise in rental revenue. The company's balance sheet saw a significant increase in total assets to $15.1 billion from $11.2 billion at the end of 2012, primarily due to the Archstone Acquisition, which added a substantial number of apartment homes to its portfolio. Total liabilities also increased substantially to $6.7 billion from $4.3 billion, reflecting the debt assumed in the acquisition. Management emphasized adequate liquidity and access to capital markets to fund ongoing development and operational needs.
Financial Highlights
32 data points| Revenue | $389.19M |
| Operating Expenses | $408.40M |
| Operating Income | $258.44M |
| Interest Expense | $43.95M |
| Net Income | -$10.71M |
| EPS (Basic) | $-0.08 |
| EPS (Diluted) | $-0.08 |
| Shares Outstanding (Basic) | 129.21M |
| Shares Outstanding (Diluted) | 129.22M |
Key Highlights
- 1Reported a net loss of $10.7 million for Q3 2013, a significant decline from $86.8 million net income in Q3 2012, primarily due to acquisition-related expenses and depreciation.
- 2Net Operating Income (NOI) for Established Communities increased by 4.2% to $148.1 million in Q3 2013 compared to the prior year, demonstrating solid operational performance.
- 3Total assets grew to $15.1 billion as of September 30, 2013, from $11.2 billion at December 31, 2012, largely driven by the Archstone Acquisition.
- 4Secured $1.3 billion revolving unsecured credit facility maturing in April 2017, with $20 million borrowed and $64.5 million in letters of credit reducing borrowing capacity as of October 31, 2013.
- 5Issued $400 million in unsecured notes in September 2013 with a 3.63% interest rate maturing in October 2020.
- 6The company continued its development pipeline, with 29 communities under construction representing an estimated $2.7 billion in total capitalized costs.
- 7Funds From Operations (FFO) attributable to common stockholders was $1.18 per diluted share for Q3 2013, a decrease from $1.44 in the prior year period, reflecting acquisition-related impacts.