8-KOther EventsExhibits & Filings

AVALONBAY COMMUNITIES INC 8-K Report, Corporate Update (Feb 26, 2013)

Filed February 26, 2013For Securities:AVB

Summary

AvalonBay Communities, Inc. (AVB) filed this Form 8-K on February 26, 2013, primarily to provide updated financial information related to its previously announced acquisition of the Archstone portfolio. The filing includes the Combined Statement of Revenues and Certain Expenses for the Archstone Portfolio for the year ended December 31, 2012, as audited by KPMG LLP. This statement is prepared for SEC compliance and is not a complete financial picture of the Archstone Properties, excluding items like depreciation, amortization, interest, and income taxes. The key financial takeaway from the Archstone Portfolio's statement is a 'Revenue in excess of certain expenses' of $309.5 million for 2012. This figure represents total revenues of $472.3 million offset by $162.8 million in specified expenses. Investors should note that this is a pro forma presentation designed to highlight operating performance potential before significant financing and non-cash charges, crucial for evaluating the transaction's underlying asset quality and expected contribution.

Key Highlights

  • 1Filing provides the audited Combined Statement of Revenues and Certain Expenses for the Archstone Portfolio for the year ended December 31, 2012.
  • 2The Archstone Portfolio generated $472.3 million in total revenue and $309.5 million in revenue in excess of certain expenses for the year ended December 31, 2012.
  • 3The financial statement is prepared in accordance with SEC rules and excludes items like depreciation, amortization, interest expense, and income taxes, as it is for inclusion in AVB's reporting.
  • 4The acquired Archstone portfolio consists of approximately 70 properties with 20,000 apartment homes, primarily in high-barrier-to-entry markets where AVB already operates.
  • 5KPMG LLP audited the provided financial statement, expressing an opinion that it fairly presents the combined revenue and certain expenses.
  • 6Note 1 clarifies that the statement is not a complete presentation of the Properties' revenue and expenses, but rather prepared for regulatory compliance purposes.
  • 7The filing reiterates the ongoing asset purchase agreement with Equity Residential and Lehman Brothers Holdings Inc. for the Archstone assets.

Frequently Asked Questions

The main purpose of this 8-K filing is to provide investors with audited financial information, specifically the Combined Statement of Revenues and Certain Expenses for the Archstone Portfolio for the year ended December 31, 2012. This is part of the ongoing disclosure requirements related to AvalonBay Communities, Inc.'s acquisition of the Archstone portfolio.

'Revenue in excess of certain expenses' represents the portfolio's top-line performance before accounting for significant non-cash items and financing costs. Certain expenses, such as depreciation, amortization, interest expense, and income taxes, are excluded because this statement is prepared for regulatory compliance (Rule 3-14 of Regulation S-X) and is not intended to be a complete financial presentation. The focus is on highlighting the operational revenue generation of the Archstone assets.

No, the filing explicitly states that the Combined Statement of Revenues and Certain Expenses is not intended to be a complete presentation of the Archstone Properties' revenue and expenses. It excludes material items like depreciation, amortization, interest expense, and income taxes, which are critical components of full financial reporting. The statement is prepared specifically to meet SEC requirements for the acquisition disclosure.

The Archstone Portfolio acquisition is a significant transaction for AVB, involving approximately 70 properties with 20,000 apartment homes. These properties are located in markets where AVB already has a strong presence, allowing for potential synergies and operational efficiencies. The provided financial data helps investors assess the revenue-generating capacity of these acquired assets.