8-KOther Events

AVALONBAY COMMUNITIES INC 8-K Report, Corporate Update (Jan 30, 2009)

Filed January 30, 2009For Securities:AVB

Summary

AvalonBay Communities, Inc. (AVB) filed this Form 8-K on January 30, 2009, to report the results of stockholder elections regarding a combined regular and special dividend of $2.70 per share, paid on January 29, 2009. The dividend consisted of a regular quarterly dividend of $0.8925 per share and a special dividend of $1.8075 per share. Investors were given the option to receive the dividend in cash, stock, or a combination. The filing details how the dividend was distributed based on these elections, with a cap on the total cash paid. The company utilized a share price of $53.06 for stock distributions, which was the average of the volume-weighted trading prices on January 22 and 23, 2009. This event is significant as it outlines the capital allocation decisions and stockholder participation in dividend distributions during a dynamic market period.

Key Highlights

  • 1AvalonBay Communities, Inc. reported results of stockholder elections for a $2.70 per share combined regular and special dividend paid on January 29, 2009.
  • 2The dividend comprised a regular quarterly payment of $0.8925 per share and a special dividend of $1.8075 per share.
  • 3Stockholders had the option to elect to receive the dividend in cash, shares of common stock, or a combination thereof.
  • 4The company paid out approximately $69 million in cash and issued approximately 2.6 million shares of its common stock as part of the dividend distribution.
  • 5The value of shares used for dividend calculation was set at $53.06 per share, based on the average volume-weighted trading price for January 22-23, 2009.
  • 6A computational adjustment resulted in a minor rounding difference for stockholders who elected to receive the dividend entirely in cash.
  • 7Fractional shares were paid out in cash.

Frequently Asked Questions

AvalonBay Communities, Inc. declared a combined regular and special dividend of $2.70 per share of common stock.

The dividend was paid on January 29, 2009, and stockholders could elect to receive it in cash, shares of common stock, or a combination of both. The company capped the aggregate cash payout and issued shares based on a calculated value.

The value used to calculate the number of shares issued was $53.06 per share, which represented the average of the volume-weighted trading prices of AvalonBay's common stock on the New York Stock Exchange for January 22 and 23, 2009.

Yes, for stockholders who elected to receive the dividend entirely in cash, there was a minor computational adjustment. The per share cash amount was rounded down to $1.0227 and the per share stock amount was rounded up to $1.6773, while maintaining the total $2.70 per share dividend.