Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | AVALONBAY COMMUNITIES INC | |
Entity Central Index Key | 915,912 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 137,162,514 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Real estate: | ||
Land and improvements | $ 3,742,588 | $ 3,623,532 |
Buildings and improvements | 13,433,401 | 13,056,292 |
Furniture, fixtures and equipment | 481,036 | 458,224 |
Gross operating real estate | 17,657,025 | 17,138,048 |
Less accumulated depreciation | (3,430,592) | (3,303,751) |
Net operating real estate | 14,226,433 | 13,834,297 |
Construction in progress, including land | 1,587,132 | 1,592,917 |
Land held for development | 477,072 | 476,871 |
Real estate assets held for sale, net | 20,341 | 38,224 |
Real Estate Investments, Net | 16,310,978 | 15,942,309 |
Cash and cash equivalents | 97,541 | 400,507 |
Cash in escrow | 170,361 | 104,821 |
Resident security deposits | 31,964 | 30,077 |
Investments in unconsolidated real estate entities | 182,367 | 216,919 |
Deferred development costs | 42,635 | 37,577 |
Prepaid expenses and other assets | 207,544 | 199,095 |
Total assets | 17,043,390 | 16,931,305 |
LIABILITIES AND EQUITY | ||
Unsecured notes, net | 3,846,854 | 3,845,674 |
Variable rate unsecured credit facility | 0 | 0 |
Mortgage notes payable | 2,655,726 | 2,611,274 |
Dividends payable | 185,173 | 171,257 |
Payables for construction | 99,644 | 98,802 |
Accrued expenses and other liabilities | 304,612 | 260,005 |
Accrued interest payable | 38,952 | 40,085 |
Resident security deposits | 55,770 | 53,132 |
Liabilities related to real estate assets held for sale | 0 | 553 |
Total liabilities | $ 7,186,731 | $ 7,080,782 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | $ 10,127 | $ 9,997 |
Equity: | ||
Preferred stock, $0.01 par value; $25 liquidation preference; 50,000,000 shares authorized at March 31, 2016 and December 31, 2015; zero shares issued and outstanding at March 31, 2016 and December 31, 2015 | 0 | 0 |
Common stock, $0.01 par value; 280,000,000 shares authorized at March 31, 2016 and December 31, 2015; 137,162,107 and 137,002,031 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively | 1,372 | 1,370 |
Additional paid-in capital | 10,069,729 | 10,068,532 |
Accumulated earnings less dividends | (146,799) | (197,989) |
Accumulated other comprehensive loss | (77,770) | (31,387) |
Total equity | 9,846,532 | 9,840,526 |
Total liabilities and equity | $ 17,043,390 | $ 16,931,305 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 280,000,000 | 280,000,000 |
Common stock, shares issued | 137,162,107 | 137,002,031 |
Common stock, shares outstanding | 137,162,107 | 137,002,031 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Revenue: | |||
Rental and other income | $ 506,974 | $ 439,756 | |
Management, development and other fees | 1,524 | 2,611 | |
Total revenue | 508,498 | 442,367 | |
Expenses: | |||
Operating expenses, excluding property taxes | 116,626 | 112,777 | |
Property taxes | 50,067 | 47,177 | |
Interest expense, net | [1] | 43,410 | 45,573 |
Depreciation expense | [1] | 127,216 | 116,853 |
General and administrative expense | 11,404 | 10,468 | |
Business Combination, Acquisition Related Costs | 3,462 | 1,187 | |
Casualty and impairment (gain) loss, net | 2,202 | (5,788) | |
Total expenses | 349,983 | 339,823 | |
Equity in income of unconsolidated real estate entities | 27,969 | 34,566 | |
Gain on sale of real estate | 0 | 22 | |
Gain on sale of communities | 51,430 | 70,936 | |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 237,914 | 208,068 | |
Income Tax Expense (Benefit) | 37 | 15 | |
Discontinued operations: | |||
Net income | 237,877 | 208,053 | |
Net loss attributable to noncontrolling interests | 54 | 91 | |
Net income attributable to common stockholders | 237,931 | 208,144 | |
Other comprehensive income (loss): | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | (47,757) | (30) | |
Cash flow hedge losses reclassified to earnings | 1,374 | 1,595 | |
Comprehensive income | $ 191,548 | $ 209,709 | |
Earnings per common share - diluted: | |||
Dividends per common share (in dollars per share) | $ 1.35 | $ 1.25 | |
[1] | Represents NOI from real estate assets sold or held for sale that are not otherwise classified as discontinued operations. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Cash flows from operating activities: | |||
Net income | $ 237,877 | $ 208,053 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation expense | [1] | 127,216 | 116,853 |
Amortization of deferred financing costs | 1,936 | 1,664 | |
Amortization of debt premium | (4,779) | (8,660) | |
Amortization of stock-based compensation | 3,835 | 4,038 | |
Equity in loss of, and return on, unconsolidated entities and noncontrolling interests, net of eliminations | 6,438 | 3,805 | |
Casualty and impairment (gain) loss, net | (2,202) | 4,995 | |
Cash flow hedge losses reclassified to earnings | 1,374 | 1,565 | |
Gain on sale of real estate assets | (81,055) | (79,033) | |
Decrease (increase) in cash in operating escrows | 3,009 | (7,815) | |
Increase in resident security deposits, prepaid expenses and other assets | (8,559) | (2,351) | |
Increase in accrued expenses, other liabilities and accrued interest payable | (7,308) | (6,734) | |
Net cash provided by operating activities | 277,782 | 236,380 | |
Cash flows from investing activities: | |||
Development/redevelopment of real estate assets including land acquisitions and deferred development costs | (266,588) | (578,632) | |
Payments to Acquire Other Real Estate | (170,022) | 0 | |
Capital expenditures - existing real estate assets | (11,618) | (7,820) | |
Capital expenditures - non-real estate assets | (3,264) | (859) | |
Proceeds from sale of real estate, net of selling costs | 68,709 | 112,504 | |
Insurance proceeds for property damage claims | 8,702 | 0 | |
Increase (decrease) in payables for construction | 842 | (7,885) | |
Increase (Decrease) in Restricted Cash | (69,227) | 0 | |
Distributions from unconsolidated real estate entities | 58,652 | 40,493 | |
Investments in unconsolidated real estate entities | (913) | 0 | |
Net cash used in investing activities | (384,727) | (442,199) | |
Cash flows from financing activities: | |||
Issuance of common stock, net | 1,102 | 1,973 | |
Dividends paid | (171,151) | (153,095) | |
Repayments of mortgage notes payable, including prepayment penalties | (19,682) | (4,209) | |
Issuance of unsecured notes | 0 | 50,000 | |
Payment of deferred financing costs | (6,176) | (578) | |
Distributions to DownREIT partnership unitholders | (10) | (9) | |
Distributions to joint venture and profit-sharing partners | (104) | (91) | |
Redemption of preferred interest obligation | 0 | (1,520) | |
Net cash used in financing activities | (196,021) | (107,529) | |
Net decrease in cash and cash equivalents | (302,966) | (313,348) | |
Cash and cash equivalents, beginning of period | 400,507 | 508,276 | |
Cash and cash equivalents, end of period | 97,541 | 194,928 | |
Cash paid during the period for interest, net of amount capitalized | $ 46,011 | $ 59,624 | |
[1] | Represents NOI from real estate assets sold or held for sale that are not otherwise classified as discontinued operations. |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Increase (Decrease) in Prepaid Expense and Other Assets | $ (5,422,000) | |
Increase in accrued expenses, other liabilities and accrued interest payable | 42,335,000 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | (47,757,000) | $ (30,000) |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ 1,374,000 | $ 1,565,000 |
Supplemental disclosures of non-cash investing and financing activities | ||
Stock issued in connection with stock grants (in shares) | 154,645 | |
Common stock issued through the dividend reinvestment plan (in shares) | 576 | 484 |
Common stock issued through the dividend reinvestment plan | $ 101,000 | $ 86,000 |
Number of shares withheld to satisfy employees' tax withholding and other liabilities | 48,189 | 32,887 |
Shares withheld to satisfy employees' tax withholding and other liabilities, value | $ 8,164,000 | $ 5,338,000 |
Stock Issued During Period, Shares, Share-based Compensation, Forfeited | 12 | |
Stock Issued During Period, Value, Share-based Compensation, Forfeited | $ 76,000 | |
Net operating real estate | 14,226,433,000 | |
Dividends declared but not paid | 185,173,000 | 165,241,000 |
(Decrease) increase in redeemable noncontrolling interests | 2,065,000 | |
Cash flow hedge losses reclassified to earnings | 1,374,000 | 1,595,000 |
Impairment of Real Estate | (2,202,000) | $ 5,788,000 |
Cash in escrow | $ 170,361,000 | |
Restricted Stock Converted From Performance Shares [Member] | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Restricted stock granted | 115,618 | 95,826 |
Restricted stock | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Restricted stock granted | 77,553 | 58,819 |
Fair value of shares issued | $ 12,529,000 | $ 10,199,000 |
Stock Issued During Period, Shares, Share-based Compensation, Forfeited | 499 | |
Avalon at Edgewater [Member] | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Net operating real estate | $ 21,844,000 | |
Impairment of Real Estate | (8,702,000) | 793,000 |
Insurance Proceeds In Escrow | 22,000,000 | |
New England [Member] | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Impairment of Real Estate | $ 4,195,000 | |
New England [Member] | Avalon at Edgewater [Member] | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Impairment of Real Estate | $ 26,039,000 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization, Basis of Presentation and Significant Accounting Policies | Organization, Basis of Presentation and Significant Accounting Policies Organization and Basis of Presentation AvalonBay Communities, Inc. (the “Company,” which term, unless the context otherwise requires, refers to AvalonBay Communities, Inc. together with its subsidiaries), is a Maryland corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes under the Internal Revenue Code of 1986 (the “Code”). The Company focuses on the development, redevelopment, acquisition, ownership and operation of multifamily communities primarily in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. At March 31, 2016 , the Company owned or held a direct or indirect ownership interest in 258 operating apartment communities containing 75,379 apartment homes in 10 states and the District of Columbia, of which eleven communities containing 3,429 apartment homes were under reconstruction. In addition, the Company owned or held a direct or indirect interest in 24 communities under construction that are expected to contain an aggregate of 7,670 apartment homes when completed. The Company also owned or held a direct or indirect ownership interest in land or rights to land on which the Company expects to develop an additional 30 communities that, if developed as expected, will contain an estimated 9,745 apartment homes. The interim unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements required by GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements should be read in conjunction with the financial statements and notes included in the Company’s 2015 Annual Report on Form 10-K. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the operating results for the full year. Management believes the disclosures are adequate to ensure the information presented is not misleading. In the opinion of management, all adjustments and eliminations, consisting only of normal, recurring adjustments necessary for a fair presentation of the financial statements for the interim periods, have been included. Capitalized terms used without definition have meanings provided elsewhere in this Form 10-Q. Earnings per Common Share Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common shareholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per share (“EPS”). Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. The Company’s earnings per common share are determined as follows (dollars in thousands, except per share data): For the three months ended 3/31/2016 3/31/2015 Basic and diluted shares outstanding Weighted average common shares - basic 136,785,880 131,883,741 Weighted average DownREIT units outstanding 7,500 7,500 Effect of dilutive securities 589,664 1,284,532 Weighted average common shares - diluted 137,383,044 133,175,773 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 237,931 $ 208,144 Net income allocated to unvested restricted shares (632 ) (529 ) Net income attributable to common stockholders, adjusted $ 237,299 $ 207,615 Weighted average common shares - basic 136,785,880 131,883,741 Earnings per common share - basic $ 1.73 $ 1.57 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 237,931 $ 208,144 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships, including discontinued operations 10 9 Adjusted net income available to common stockholders $ 237,941 $ 208,153 Weighted average common shares - diluted 137,383,044 133,175,773 Earnings per common share - diluted $ 1.73 $ 1.56 All options to purchase shares of common stock outstanding as of March 31, 2016 and 2015 are included in the computation of diluted earnings per share. The Company is required to estimate the forfeiture of stock options and recognize compensation cost net of the estimated forfeitures. The estimated forfeitures included in compensation cost are adjusted to reflect actual forfeitures at the end of the vesting period. The forfeiture rate at March 31, 2016 was 0.8% and is based on the average forfeiture activity over a period equal to the estimated life of the stock options. The application of estimated forfeitures did not materially impact compensation expense for the three months ended March 31, 2016 or 2015 . Derivative Instruments and Hedging Activities The Company enters into interest rate swap and interest rate cap agreements (collectively, “Hedging Derivatives”) for interest rate risk management purposes and in conjunction with certain variable rate secured debt to satisfy lender requirements. The Company does not enter into Hedging Derivative transactions for trading or other speculative purposes. The Company assesses the effectiveness of qualifying cash flow and fair value hedges, both at inception and on an on-going basis. Hedge ineffectiveness is reported as a component of general and administrative expenses. The fair values of Hedging Derivatives that are in an asset position are recorded in prepaid expenses and other assets. The fair value of Hedging Derivatives that are in a liability position are included in accrued expenses and other liabilities. Fair value changes for derivatives that are not in qualifying hedge relationships are reported as a component of interest expense, net. For the Hedging Derivative positions that the Company has determined qualify as effective cash flow hedges, the Company has recorded the effective portion of cumulative changes in the fair value of Hedging Derivatives in other comprehensive income (loss). Amounts recorded in other comprehensive income (loss) will be reclassified into earnings in the periods in which earnings are affected by the hedged cash flow. The effective portion of the change in fair value of the Hedging Derivatives that the Company has determined qualified as effective fair value hedges is reported as an adjustment to the carrying amount of the corresponding debt being hedged. See Note 10, "Fair Value," for further discussion of derivative financial instruments. Legal and Other Contingencies In January 2015, a fire occurred at the Company’s Avalon at Edgewater apartment community located in Edgewater, New Jersey. Edgewater consisted of two residential buildings. One building, containing 240 apartment homes, was destroyed. The second building, containing 168 apartment homes, suffered minimal damage and has been repaired. The Company is aware that third parties incurred significant property damage and are claiming other losses, such as relocation costs, as a result of the fire. The Company has established protocols for processing claims and has encouraged any party who sustained a loss to contact the Company’s insurance carrier to file a claim. To date, four putative class action lawsuits have been filed against the Company on behalf of Edgewater residents and others who may have been harmed by the fire. The court has consolidated these actions in the United States District Court for the District of New Jersey. In addition, 19 lawsuits representing approximately 138 individual plaintiffs have been filed in the Superior Court of New Jersey Bergen County - Law Division. Most of these cases have been consolidated by the court and the Company expects all of them to be consolidated shortly. The Company believes that it has meritorious defenses to the extent of damages claimed. Having incurred applicable deductibles, the Company currently believes that all of its remaining liability to third parties will be substantially covered by its insurance policies. However, the Company can give no assurances in this regard and continues to evaluate this matter. See Note 5, "Investments in Real Estate Entities," and Part II, Item 1, "Legal Proceedings," for further discussion of the casualty gains and losses and lawsuits associated with the Edgewater casualty loss. The Company is involved in various other claims and/or administrative proceedings unrelated to the Edgewater casualty loss that arise in the ordinary course of its business. While no assurances can be given, the Company does not currently believe that any of these other outstanding litigation matters, individually or in the aggregate, will have a material adverse effect on its financial condition or results of operations. Acquisitions of Investments in Real Estate The Company accounts for acquisitions of investments in real estate in accordance with the authoritative guidance for the initial measurement, which requires the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree to be recognized at fair value. Typical assets and liabilities acquired include land, building, furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of above or below market leases and in-place leases. In making estimates of fair values for purposes of allocating purchase price, the Company utilizes various sources, including its own analysis of recently acquired and existing comparable properties in its portfolio and other market data. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to amounts in prior years’ financial statements to conform to current year presentations as a result of changes in held for sale classification. Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of share-based payment transactions, including income tax consequences, classification of awards as equity or liability, statement of cash flows classification and policy election options for forfeitures. The new standard requires either a prospective, retrospective or modified retrospective approach depending on the amendment type. The guidance will be effective in the first quarter of 2017 and allows for early adoption. The Company is assessing whether the new standard will have a material effect on its financial position or results of operations |
Interest Capitalized
Interest Capitalized | 3 Months Ended |
Mar. 31, 2016 | |
Interest Capitalized | |
Interest Capitalized | Interest Capitalized The Company capitalizes interest during the development and redevelopment of real estate assets. Capitalized interest associated with the Company’s development or redevelopment activities totaled $20,609,000 and $19,030,000 for the three months ended March 31, 2016 and 2015 , respectively. |
Notes Payable, Unsecured Notes
Notes Payable, Unsecured Notes and Credit Facility | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable, Unsecured Notes and Credit Facility | Mortgage Notes Payable, Unsecured Notes and Credit Facility The Company’s mortgage notes payable, unsecured notes, Term Loan and Credit Facility, both as defined below, as of March 31, 2016 and December 31, 2015 are summarized below (dollars in thousands). The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of March 31, 2016 and December 31, 2015 , as shown in the Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, “Real Estate Disposition Activities”). 3/31/2016 12/31/2015 Fixed rate unsecured notes (1) $ 3,575,000 $ 3,575,000 Term Loan 300,000 300,000 Fixed rate mortgage notes payable - conventional and tax-exempt (2) 1,609,236 1,561,109 Variable rate mortgage notes payable - conventional and tax-exempt (2) 1,044,598 1,045,182 Total mortgage notes payable and unsecured notes 6,528,834 6,481,291 Credit Facility — — Total mortgage notes payable, unsecured notes and Credit Facility $ 6,528,834 $ 6,481,291 _____________________________________ (1) Balances at March 31, 2016 and December 31, 2015 exclude $7,310 and $7,601 , respectively, of debt discount, and $20,836 and $21,725 , respectively, of deferred financing costs, as reflected in unsecured notes, net on the Company’s Condensed Consolidated Balance Sheets. (2) Balances at March 31, 2016 and December 31, 2015 exclude $16,652 and $19,686 , respectively, of debt premium, and $14,760 and $14,703 , respectively, of deferred financing costs, as reflected in mortgage notes payable on the Company’s Condensed Consolidated Balance Sheets. The following debt activity occurred during the three months ended March 31, 2016 : • In January 2016, in conjunction with the disposition of Eaves Trumbull, Avalon at Stratford was substituted as collateral for the outstanding fixed rate mortgage note secured by Eaves Trumbull. • In January 2016, in conjunction with the acquisition of Avalon Hoboken, the Company assumed a fixed rate secured mortgage note with a principal balance of $67,904,000 and a contractual interest rate of 4.18% maturing in December 2020 . • In February 2016, the Company repaid the $16,212,000 fixed rate mortgage note secured by Archstone Lexington, with an effective interest rate of 3.32% at par and without penalty in advance of its March 2016 maturity date. Upon repayment, Archstone Lexington was substituted as collateral for the outstanding fixed rate mortgage note secured by Avalon Walnut Ridge I. In January 2016, the Company extended the maturity of its revolving variable rate unsecured credit facility (the “Credit Facility”) from April 2017 to April 2020, and amended other provisions in the Credit Facility. In addition, pursuant to an option available under the terms of the Credit Facility, with the approval of the syndicate of lenders, the Company increased the aggregate facility size from $1,300,000,000 to $1,500,000,000 (the "Credit Facility Increase"). The Company may further extend the term for up to nine months , provided the Company is not in default and upon payment of a $1,500,000 extension fee. In connection with the Credit Facility Increase, the applicable margin over reference rates used to determine the applicable interest rates on the Company's borrowings from time to time decreased. The Credit Facility bears interest at varying levels based on the London Interbank Offered Rate ("LIBOR"), rating levels achieved on the Company's unsecured notes and on a maturity schedule selected by the Company. The current stated pricing is LIBOR plus 0.825% per annum ( 1.26% at March 31, 2016 ), assuming a one month borrowing rate. The stated spread over LIBOR can vary from LIBOR plus 0.80% to LIBOR plus 1.55% based on the Company's credit ratings. In addition, a competitive bid option is available for borrowings up to 65% of the Credit Facility amount, which allows banks that are part of the lender consortium to bid to make loans at a rate that is lower than the stated rate if market conditions allow. In connection with the Credit Facility Increase, the annual facility fee was also amended to lower the fee to 0.125% from 0.15% , resulting in a fee of approximately $1,875,000 annually based on the $1,500,000,000 facility size and based on the Company's current credit rating. The Company had no borrowings outstanding under the Credit Facility and had $51,233,000 and $43,049,000 outstanding in letters of credit that reduced the borrowing capacity as of March 31, 2016 and December 31, 2015 , respectively. In the aggregate, secured notes payable mature at various dates from February 2017 through July 2066, and are secured by certain apartment communities (with a net carrying value of $3,364,440,000 , excluding communities classified as held for sale, as of March 31, 2016 ). As of March 31, 2016 , the Company has guaranteed approximately $234,500,000 of mortgage notes payable held by wholly-owned subsidiaries; all such mortgage notes payable are consolidated for financial reporting purposes. The weighted average interest rate of the Company’s fixed rate mortgage notes payable (conventional and tax-exempt) was 4.5% and 4.6% at March 31, 2016 and December 31, 2015 , respectively. The weighted average interest rate of the Company’s variable rate mortgage notes payable (conventional and tax exempt), the Term Loan and its Credit Facility, including the effect of certain financing related fees, was 1.9% and 1.8% at March 31, 2016 and December 31, 2015 , respectively. Scheduled payments and maturities of mortgage notes payable and unsecured notes outstanding at March 31, 2016 are as follows (dollars in thousands): Year Secured notes payments Secured notes maturities Unsecured notes maturities Stated interest rate of unsecured notes 2016 12,156 — 250,000 5.750 % 2017 17,166 709,791 250,000 5.700 % 2018 16,236 76,950 — N/A 2019 4,696 588,429 — N/A 2020 3,624 118,729 250,000 6.100 % 400,000 3.625 % 2021 3,551 27,844 250,000 3.950 % 300,000 LIBOR + 1.450% 2022 3,795 — 450,000 2.950 % 2023 4,040 — 350,000 4.200 % 250,000 2.850 % 2024 4,310 — 300,000 3.500 % 2025 4,553 84,835 525,000 3.450 % 300,000 3.500 % Thereafter 218,680 754,449 — N/A $ 292,807 $ 2,361,027 $ 3,875,000 The Company was in compliance at March 31, 2016 with customary financial and other covenants under the Credit Facility, the Term Loan, and the Company’s fixed rate unsecured notes. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity The following summarizes the changes in equity for the three months ended March 31, 2016 (dollars in thousands): Common stock Additional paid-in capital Accumulated earnings less dividends Accumulated other comprehensive loss Total equity Balance at December 31, 2015 $ 1,370 $ 10,068,532 $ (197,989 ) $ (31,387 ) $ 9,840,526 Net income attributable to common stockholders — — 237,931 — 237,931 Unrealized loss on cash flow hedges — — — (47,757 ) (47,757 ) Cash flow hedge loss reclassified to earnings — — — 1,374 1,374 Change in redemption value of redeemable noncontrolling interest — — (299 ) — (299 ) Dividends declared to common stockholders — — (185,168 ) — (185,168 ) Issuance of common stock, net of withholdings 2 (5,747 ) (1,274 ) — (7,019 ) Amortization of deferred compensation — 6,944 — — 6,944 Balance at March 31, 2016 $ 1,372 $ 10,069,729 $ (146,799 ) $ (77,770 ) $ 9,846,532 As of March 31, 2016 and December 31, 2015 , the Company’s charter had authorized for issuance a total of 280,000,000 shares of common stock and 50,000,000 shares of preferred stock. During the three months ended March 31, 2016 , the Company: i. issued 14,530 shares of common stock in connection with stock options exercised; ii. issued 576 common shares through the Company’s dividend reinvestment plan; iii. issued 193,171 common shares in connection with restricted stock grants and the conversion of performance awards to restricted shares; iv. withheld 48,189 common shares to satisfy employees’ tax withholding and other liabilities; and v. canceled 12 common shares of restricted stock upon forfeiture. Any deferred compensation related to the Company’s stock option, restricted stock and performance award grants during the three months ended March 31, 2016 is not reflected on the Company’s Condensed Consolidated Balance Sheet as of March 31, 2016 , and will not be reflected until recognized as compensation cost. In December 2015, the Company commenced a fourth continuous equity program ("CEP IV") under which the Company may sell up to $1,000,000,000 of its common stock from time to time. Actual sales will depend on a variety of factors to be determined by the Company, including market conditions, the trading price of the Company's common stock and determinations by the Company of the appropriate sources of funding for the Company. In conjunction with CEP IV, the Company engaged sales agents who will receive compensation of up to 2.0% of the gross sales price for shares sold. CEP IV also allows the Company to enter into forward sale agreements up to $1,000,000,000 in aggregate sales price of its common stock. The Company expects that it will physically settle each forward sale agreement on one or more dates specified by the Company on or prior to the maturity date of that particular forward sale agreement, in which case the Company will expect to receive aggregate net cash proceeds at settlement equal to the number of shares underlying the particular forward agreement multiplied by the relevant forward sale price. However, the Company may also elect to cash settle or net share settle a forward sale agreement. In connection with each forward sale agreement, the Company will pay the relevant forward seller, in the form of a reduced initial forward sale price, a commission of up to 2.0% of the sales prices of all borrowed shares of common stock sold. During the three months ended March 31, 2016 , the Company had no sales under the program and did not enter into any forward sale agreements. |
Investments in Real Estate Enti
Investments in Real Estate Entities | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Real Estate Entities | Investments in Real Estate Entities Investment in Unconsolidated Real Estate Entities As of March 31, 2016 , the Company had investments in five unconsolidated real estate entities with ownership interest percentages ranging from 20.0% to 31.3% , excluding development joint ventures. The Company accounts for its investments in unconsolidated real estate entities under the equity method of accounting. The significant accounting policies of the Company’s unconsolidated real estate entities are consistent with those of the Company in all material respects. During the three months ended March 31, 2016 , AvalonBay Value Added Fund II, L.P. ("Fund II") sold Eaves Rancho San Diego, located in El Cajon, CA, containing 676 apartment homes for $158,000,000 . The Company's share of the gain in accordance with GAAP for the disposition was $13,057,000 . In conjunction with the disposition of this community during the three months ended March 31, 2016 , Fund II repaid $68,091,000 of related secured indebtedness in advance of the scheduled maturity date. This resulted in a charge for a prepayment penalty and write-off of deferred financing costs, of which the Company's portion was $1,207,000 , which was reported as a reduction of equity in income of unconsolidated real estate entities on the accompanying Condensed Consolidated Statements of Comprehensive Income. During the three months ended March 31, 2016 , Archstone Multifamily Partners AC LP (the "U.S. Fund") sold two communities: • Archstone Boca Town Center, located in Boca Raton, FL, containing 252 apartment homes for $56,300,000 . The Company's share of the gain in accordance with GAAP for the disposition was $4,120,000 . • Avalon Kips Bay, located in New York, NY, containing 209 apartments homes for $173,000,000 . The Company's share of the gain in accordance with GAAP for the disposition was $12,448,000 . In conjunction with the disposition of these communities, during the three months ended March 31, 2016 , the U.S. Fund repaid an aggregate of $94,822,000 of related secured indebtedness in advance of the scheduled maturity dates. This resulted in charges for prepayment penalties and write-offs of deferred financing costs, of which the Company's aggregate portion was $2,003,000 , which was reported as a reduction of equity in income of unconsolidated real estate entities on the accompanying Condensed Consolidated Statements of Comprehensive Income. The following is a combined summary of the financial position of the entities accounted for using the equity method as of the dates presented, excluding amounts associated with joint ventures formed with Equity Residential as part of the Archstone acquisition (dollars in thousands): 3/31/2016 12/31/2015 (unaudited) (unaudited) Assets: Real estate, net $ 1,111,906 $ 1,392,833 Other assets 59,975 57,044 Total assets $ 1,171,881 $ 1,449,877 Liabilities and partners’ capital: Mortgage notes payable and credit facility $ 782,988 $ 947,205 Other liabilities 21,250 20,471 Partners’ capital 367,643 482,201 Total liabilities and partners’ capital $ 1,171,881 $ 1,449,877 The following is a combined summary of the operating results of the entities accounted for using the equity method for the periods presented, excluding amounts associated with joint ventures formed with Equity Residential as part of the Archstone acquisition (dollars in thousands): For the three months ended 3/31/2016 3/31/2015 (unaudited) Rental and other income $ 36,955 $ 45,255 Operating and other expenses (14,170 ) (17,337 ) Gain on sale of communities 103,321 32,490 Interest expense, net (1) (20,001 ) (10,477 ) Depreciation expense (9,240 ) (11,902 ) Net income $ 96,865 $ 38,029 _____________________________________ (1) Amount for 2016 includes charges for prepayment penalties and write-offs of deferred financing costs of $10,864 . In conjunction with the formation of Fund II, and the acquisition of the U.S. Fund, Multifamily Partners AC JV LP (the "AC JV") and Brandywine Apartments of Maryland, LLC ("Brandywine"), the Company incurred costs in excess of its equity in the underlying net assets of the respective investments. These costs represent $39,871,000 and $40,978,000 at March 31, 2016 and December 31, 2015 , respectively, of the respective investment balances. These amounts are being amortized over the lives of the underlying assets as a component of equity in income of unconsolidated entities on the accompanying Condensed Consolidated Statements of Comprehensive Income. Investments in Consolidated Real Estate Entities During the three months ended March 31, 2016 , the Company acquired two communities: • Avalon Hoboken, located in Hoboken, NJ. Avalon Hoboken contains 217 apartment homes and was acquired for a purchase price of $129,700,000 . In conjunction with the acquisition, the Company assumed a fixed rate secured mortgage note with a principal balance of $67,904,000 and a contractual interest rate of 4.18% maturing in December 2020 . • Avalon Potomac Yard, located in Alexandria, VA. Avalon Potomac Yard contains 323 apartment homes and was acquired for a purchase price of $108,250,000 . The Company accounted for these acquisitions as business combinations and recorded the acquired assets and assumed liabilities, including identifiable intangibles, at their fair values. The Company used third party pricing or internal models for the values of the land, a valuation model for the values of the buildings and debt, and an internal model to determine the fair values of the remaining real estate assets and in-place leases. Given the heterogeneous nature of multifamily real estate, the fair values for the land, debt, real estate assets and in-place leases incorporated significant unobservable inputs and therefore are considered to be Level 3 prices within the fair value hierarchy. Expensed Acquisition, Development and Other Pursuit Costs and Impairment of Long-Lived Assets The Company capitalizes pre-development costs incurred in pursuit of new development opportunities for which the Company currently believes future development is probable (“Development Rights”). Future development of these Development Rights is dependent upon various factors, including zoning and regulatory approval, rental market conditions, construction costs and the availability of capital. Initial pre-development costs incurred for pursuits for which future development is not yet considered probable are expensed as incurred. In addition, if the status of a Development Right changes, making future development by the Company no longer probable, any capitalized pre-development costs are written off with a charge to expense. The Company expensed costs related to the abandonment of Development Rights as well as costs incurred in pursuing the acquisition of assets or costs incurred pursuing the disposition of assets for which such acquisition and disposition activity did not occur, in the amounts of $1,846,000 and $1,187,000 for the three months ended March 31, 2016 and 2015 , respectively. These costs are included in expensed acquisition, development, and other pursuit costs, net of recoveries on the accompanying Condensed Consolidated Statements of Comprehensive Income. Abandoned pursuit costs can vary greatly, and the costs incurred in any given period may be significantly different in future periods. The Company evaluates its real estate and other long-lived assets for impairment when potential indicators of impairment exist. Such assets are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is not recoverable. If events or circumstances indicate that the carrying amount of a property or long-lived asset may not be recoverable, the Company assesses its recoverability by comparing the carrying amount of the property or long-lived asset to its estimated undiscounted future cash flows. If the carrying amount exceeds the aggregate undiscounted future cash flows, the Company recognizes an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property or long-lived asset. Based on periodic tests of recoverability of long-lived assets for the three months ended March 31, 2016 and 2015 , the Company did not recognize any impairment losses for wholly-owned operating real estate assets. The Company assesses its portfolio of land held for both development and investment for impairment if the intent of the Company changes with respect to either the development of, or the expected holding period for, the land. During the three months ended March 31, 2016 , the Company recognized an aggregate impairment charge of $6,500,000 relating to two undeveloped land parcels which the Company now intends to sell. This charge is included in casualty and impairment (gain) loss, net on the accompanying Condensed Consolidated Statements of Comprehensive Income. The Company did not recognize any material impairment charges on its investment in land during the three months ended March 31, 2015 . The Company evaluates its unconsolidated investments for other than temporary impairment, considering both the extent and amount by which the carrying value of the investment exceeds the fair value, and the Company’s intent and ability to hold the investment to recover its carrying value. The Company also evaluates its proportionate share of any impairment of assets held by unconsolidated investments. There were no material other than temporary impairment losses recognized by any of the Company’s investments in unconsolidated real estate entities during the three months ended March 31, 2016 and 2015 . Casualty Gains and Losses During the three months ended March 31, 2016 , the Company reached a final insurance settlement for the property damage and lost income for the Edgewater casualty loss. In 2015 and 2016, the Company received aggregate insurance proceeds for Edgewater of $73,008,000 , after self-insurance and deductibles. During the three months ended March 31, 2016 , the Company received the final $29,008,000 of these proceeds, of which $8,702,000 was recognized as casualty and impairment (gain) loss, net on the accompanying Condensed Consolidated Statements of Comprehensive Income, and $20,306,000 as business interruption insurance proceeds, which is recorded as a component of rental and other income on the Condensed Consolidated Statements of Comprehensive Income. During the three months ended March 31, 2015 , the Company recorded a casualty charge of $21,844,000 to write-off the net book value of the building destroyed in the Edgewater fire. The write-off, coupled with additional incident response expenses, was partially offset by $22,142,000 in insurance proceeds received during the three months ended March 31, 2015 , included in prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets. The net impact to casualty loss of $793,000 is included in casualty and impairment (gain) loss, net on the accompanying Condensed Consolidated Statements of Comprehensive Income. See discussion in Note 1, "Organization, Basis of Presentation and Significant Accounting Policies, Legal and Other Contingencies," and Part II, Item 1, "Legal Proceedings," for further discussion of the Edgewater casualty loss. During the three months ended March 31, 2015 , several of the Company's communities in its Northeast markets incurred property and casualty damages from severe winter storms experienced during this time. The Company recorded an impairment due to a casualty loss of $4,195,000 to recognize the damages from the storms as casualty and impairment (gain) loss, net on the accompanying Condensed Consolidated Statements of Comprehensive Income. |
Real Estate Disposition Activit
Real Estate Disposition Activities | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate Disposition Activities | Real Estate Disposition Activities During the three months ended March 31, 2016 , the Company sold one wholly-owned operating community. • Eaves Trumbull, located in Trumbull, CT, containing 340 homes, was sold for $70,250,000 . The Company's gain in accordance with GAAP on the disposition was $51,430,000 , reported in gain on sale of communities on the accompanying Condensed Consolidated Statements of Comprehensive Income. The sale of Eaves Trumbull is part of a tax deferred exchange under which the Company has restricted the cash proceeds, maintaining them in an escrow account, classified as cash in escrow on the accompanying Condensed Consolidated Balance Sheet. These proceeds will be available to the Company as unrestricted cash and cash equivalents by the third quarter of 2016. At March 31, 2016 , the Company had three undeveloped land parcels that qualified as held for sale. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s reportable operating segments include Established Communities, Other Stabilized Communities, and Development/Redevelopment Communities. Annually as of January 1, the Company determines which of its communities fall into each of these categories and generally maintains that classification throughout the year for the purpose of reporting segment operations, unless disposition or redevelopment plans regarding a community change. In addition, the Company owns land for future development and has other corporate assets that are not allocated to an operating segment. The Company’s segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing each segment’s performance. The Company’s chief operating decision maker is comprised of several members of its executive management team who use net operating income (“NOI”) as the primary financial measure for Established Communities and Other Stabilized Communities. NOI is defined by the Company as total property revenue less direct property operating expenses, including property taxes, and excluding corporate-level income (including management, development and other fees), corporate-level property management and other indirect operating expenses, investments and investment management expenses, expensed acquisition, development and other pursuit costs, net of recoveries, interest expense, net, loss on extinguishment of debt, net, general and administrative expense, equity in income of unconsolidated real estate entities, depreciation expense, corporate income tax expense, casualty and impairment (gain) loss, net, gain on sale of real estate assets and net operating income from real estate assets sold or held for sale. Although the Company considers NOI a useful measure of a community's or communities' operating performance, NOI should not be considered an alternative to net income or net cash flow from operating activities, as determined in accordance with GAAP. NOI excludes a number of income and expense categories as detailed in the reconciliation of NOI to net income. A reconciliation of NOI to net income for the three months ended March 31, 2016 and 2015 is as follows (dollars in thousands): For the three months ended 3/31/2016 3/31/2015 Net income $ 237,877 $ 208,053 Indirect operating expenses, net of corporate income 16,537 15,399 Investments and investment management expense 1,145 1,034 Expensed acquisition, development and other pursuit costs, net of recoveries 3,462 1,187 Interest expense, net 43,410 45,573 General and administrative expense 11,404 10,468 Equity in income of unconsolidated real estate entities (27,969 ) (34,566 ) Depreciation expense 127,216 116,853 Income tax expense 37 15 Casualty and impairment (gain) loss, net (2,202 ) 5,788 Gain on sale of real estate assets (51,430 ) (70,958 ) Net operating income from real estate assets sold or held for sale (1) (721 ) (3,219 ) Net operating income $ 358,766 $ 295,627 __________________________________ (1) Represents NOI from real estate assets sold or held for sale that are not otherwise classified as discontinued operations. The following is a summary of NOI from real estate assets sold or held for sale for the periods presented (dollars in thousands): For the three months ended 3/31/2016 3/31/2015 Rental income from real estate assets sold or held for sale $ 1,193 $ 5,398 Operating expenses from real estate assets sold or held for sale (472 ) (2,179 ) Net operating income from real estate assets sold or held for sale $ 721 $ 3,219 The primary performance measure for communities under development or redevelopment depends on the stage of completion. While under development, management monitors actual construction costs against budgeted costs as well as lease-up pace and rent levels compared to budget. The following table provides details of the Company’s segment information as of the dates specified (dollars in thousands). The segments are classified based on the individual community’s status at the beginning of the given calendar year. Therefore, each year the composition of communities within each business segment is adjusted. Accordingly, the amounts between years are not directly comparable. Segment information for the three months ended March 31, 2016 and 2015 has been adjusted for the real estate assets that were sold from January 1, 2015 through March 31, 2016 , or otherwise qualify as held for sale as of March 31, 2016 , as described in Note 6, “Real Estate Disposition Activities.” For the three months ended Total revenue NOI % NOI change from prior year Gross real estate (1) For the period ended March 31, 2016 Established New England $ 58,414 $ 37,270 15.9 % $ 1,860,863 Metro NY/NJ 87,789 59,764 3.2 % 2,883,958 Mid-Atlantic 57,530 40,063 1.3 % 2,330,106 Pacific Northwest 21,583 15,745 6.7 % 795,228 Northern California 78,452 60,248 11.5 % 2,651,741 Southern California 71,257 51,041 9.8 % 2,633,553 Total Established 375,025 264,131 7.9 % 13,155,449 Other Stabilized (2) 77,505 59,308 N/A 2,196,700 Development / Redevelopment 53,251 35,327 N/A 3,802,952 Land Held for Future Development N/A N/A N/A 477,072 Non-allocated (3) 1,524 N/A N/A 89,056 Total $ 507,305 $ 358,766 21.4 % $ 19,721,229 For the period ended March 31, 2015 Established New England $ 46,034 $ 26,800 (3.8 )% $ 1,429,727 Metro NY/NJ 93,183 64,366 2.8 % 3,141,136 Mid-Atlantic 51,704 36,031 (0.8 )% 2,170,104 Pacific Northwest 18,489 13,373 9.0 % 718,884 Northern California 65,515 49,734 11.5 % 2,405,670 Southern California 62,324 43,517 13.1 % 2,501,165 Total Established 337,249 233,821 5.3 % 12,366,686 Other Stabilized 54,083 34,818 N/A 2,100,918 Development / Redevelopment 43,026 26,988 N/A 3,147,624 Land Held for Future Development N/A N/A N/A 529,069 Non-allocated (3) 2,611 N/A N/A 29,217 Total $ 436,969 $ 295,627 13.4 % $ 18,173,514 __________________________________ (1) Does not include gross real estate assets held for sale of $20,341 and $201,829 as of March 31, 2016 and 2015 , respectively. (2) Total revenue and NOI for the three months ended March 31, 2016 includes $20,306 in business interruption insurance proceeds. (3) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Information with respect to stock options granted under the Company’s 1994 Stock Option and Incentive Plan (the “1994 Plan”) and its 2009 Stock Option and Incentive Plan (the “2009 Plan”) is as follows: 2009 Plan shares Weighted average exercise price per share 1994 Plan shares Weighted average exercise price per share Options Outstanding, December 31, 2015 249,178 $ 122.17 82,195 $ 103.27 Exercised (6,660 ) 126.99 (7,870 ) 100.36 Forfeited — — — — Options Outstanding, March 31, 2016 242,518 $ 122.04 74,325 $ 103.57 Options Exercisable, March 31, 2016 242,518 $ 122.04 74,325 $ 103.57 Information with respect to performance awards granted is as follows: Performance awards Weighted average grant date fair value per award Outstanding at December 31, 2015 238,266 $ 119.65 Granted (1) 93,031 141.88 Change in awards based on performance (2) 36,091 91.57 Converted to restricted stock (115,618 ) 91.57 Forfeited (494 ) 151.82 Outstanding at March 31, 2016 251,276 $ 136.71 __________________________________ (1) The amount of restricted stock ultimately earned is based on the total shareholder return metrics related to the Company’s common stock for 60,229 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 32,802 performance awards. (2) Represents the change in the number of performance awards earned based on performance achievement. The Company used a Monte Carlo model to assess the compensation cost associated with the portion of the performance awards determined by using total shareholder return measures. The assumptions used are as follows: 2016 Dividend yield 3.3% Estimated volatility over the life of the plan (1) 15.2% - 22.8% Risk free rate 0.44% - 0.88% Estimated performance award value based on total shareholder return measure $131.24 __________________________________ (1) Estimated volatility over the life of the plan is using 50% historical volatility and 50% implied volatility. For the portion of the performance awards determined by using financial metrics, the compensation cost was based on the grant date value of $161.56 , and the Company's estimate of corporate achievement for the financial metrics. Information with respect to restricted stock granted is as follows: Restricted stock shares Restricted stock shares weighted average grant date fair value per share Restricted stock shares converted from performance awards Outstanding at December 31, 2015 147,884 $ 146.21 98,347 Granted 77,553 161.56 115,618 Vested (79,408 ) 140.65 (36,505 ) Forfeited (499 ) 152.87 — Outstanding at March 31, 2016 145,530 $ 157.40 177,460 Total employee stock-based compensation cost recognized in income was $3,742,000 and $3,883,000 for the three months ended March 31, 2016 and 2015 , respectively, and total capitalized stock-based compensation cost was $3,048,000 and $3,244,000 for the three months ended March 31, 2016 and 2015 , respectively. At March 31, 2016 , there was a total unrecognized compensation cost of $40,083,000 for unvested restricted stock and performance awards, which does not include estimated forfeitures, and is expected to be recognized over a weighted average period of 3.9 years. |
Related Party Arrangements
Related Party Arrangements | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Arrangements | Related Party Arrangements Unconsolidated Entities The Company manages unconsolidated real estate entities for which it receives asset management, property management, development and redevelopment fee revenue. From these entities, the Company earned fees of $1,524,000 and $2,611,000 during the three months ended March 31, 2016 and 2015 , respectively. These fees are recognized on an accrual basis when earned in accordance with the accounting guidance applicable to revenue recognition, and are included in management, development and other fees on the accompanying Condensed Consolidated Statements of Comprehensive Income. In addition, the Company has outstanding receivables associated with its management role of $3,796,000 and $3,832,000 as of March 31, 2016 and December 31, 2015 , respectively. Director Compensation The Company recorded non-employee director compensation expense relating to restricted stock grants and deferred stock awards in the amount of $341,000 and $271,000 in the three months ended March 31, 2016 and 2015 , respectively, as a component of general and administrative expense. Deferred compensation relating to these restricted stock grants and deferred stock awards to non-employee directors was $195,000 and $488,000 on March 31, 2016 and December 31, 2015 , respectively. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Financial Instruments Carried at Fair Value Derivative Financial Instruments Currently, the Company uses interest rate swap and interest rate cap agreements to manage its interest rate risk. These instruments are carried at fair value in the Company’s financial statements. In adjusting the fair value of its derivative contracts for the effect of counterparty nonperformance risk, the Company has considered the impact of its net position with a given counterparty, as well as any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. The Company minimizes its credit risk on these transactions by dealing with major, creditworthy financial institutions which have an A or better credit rating by the Standard & Poor’s Ratings Group. As part of its on-going control procedures, the Company monitors the credit ratings of counterparties and the exposure of the Company to any single entity, thus reducing credit risk concentration. The Company believes the likelihood of realizing losses from counterparty nonperformance is remote. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, such as interest rate, term to maturity and volatility, the credit valuation adjustments associated with its derivatives use Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by itself and its counterparties. As of March 31, 2016 , the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined it is not significant. As a result, the Company has determined that its derivative valuations are classified in Level 2 of the fair value hierarchy. Hedge ineffectiveness did not have a material impact on earnings of the Company for the three months ended March 31, 2016 , or any prior period, and the Company does not anticipate that it will have a material effect in the future. The following table summarizes the consolidated derivative positions at March 31, 2016 (dollars in thousands): Non-designated Hedges Interest Rate Caps Cash Flow Hedges Interest Rate Caps Cash Flow Hedges Interest Rate Swaps Notional balance $ 724,700 $ 36,525 $ 1,050,000 Weighted average interest rate (1) 1.9 % 2.7 % N/A Weighted average swapped/capped interest rate 5.8 % 5.9 % 2.3 % Earliest maturity date Jul 2016 Apr 2019 May 2016 Latest maturity date Feb 2021 Apr 2019 Nov 2017 ____________________________________ (1) For interest rate caps, represents the weighted average interest rate on the hedged debt. Excluding derivatives executed to hedge secured debt on communities classified as held for sale, the Company had 16 derivatives designated as cash flow hedges and 15 derivatives not designated as hedges at March 31, 2016 . Fair value changes for derivatives not in qualifying hedge relationships for the three months ended March 31, 2016 and 2015 were not material. During three months ended March 31, 2016 , the Company deferred $47,757,000 of losses for cash flow hedges, reported as a component of other comprehensive income (loss). In addition, the Company reclassified $1,374,000 and $1,595,000 of deferred losses from accumulated other comprehensive income as a component of interest expense, net for the three months ended March 31, 2016 and 2015 , respectively. The Company anticipates reclassifying approximately $5,493,000 of hedging losses from accumulated other comprehensive loss into earnings within the next 12 months to offset the variability of cash flows of the hedged item during this period. During the three months ended March 31, 2016 , the Company entered into $450,000,000 of forward interest rate swap agreements to reduce the impact of variability in interest rates on a portion of the Company's expected debt issuance activity in 2016 and 2017. At maturity of the agreements, the Company expects to cash settle the contracts and either pay or receive cash for the then current fair value. Assuming that the Company issues the debt as expected, the impact from settling these positions will then be recognized over the life of the issued debt as a yield adjustment. Redeemable Noncontrolling Interests The Company provided redemption options (the “Puts”) that allow joint venture partners of the Company to require the Company to purchase their interests in the investment at a guaranteed minimum amount related to three ventures. The Puts are payable in cash. The Company determines the fair value of the Puts based on unobservable inputs considering the assumptions that market participants would make in pricing the obligations, applying a guaranteed rate of return to the joint venture partners’ net capital contribution balances as of period end. Given the significance of the unobservable inputs, the valuations are classified in Level 3 of the fair value hierarchy. The Company issued units of limited partnership interest in DownREITs which provide the DownREIT limited partners the ability to present all or some of their units for redemption for cash as determined by the partnership agreement. Under the DownREIT agreements, for each limited partnership unit, the limited partner is entitled to receive cash in the amount equal to the fair value of the Company’s common stock on or about the date of redemption. In lieu of cash redemption, the Company may elect to exchange such units for an equal number of shares of the Company’s common stock. The limited partnership units in the DownREITs are valued using the market price of the Company’s common stock, a Level 1 price under the fair value hierarchy. Financial Instruments Not Carried at Fair Value Cash and Cash Equivalents Cash and cash equivalent balances are held with various financial institutions within principal protected accounts. The Company monitors credit ratings of these financial institutions and the concentration of cash and cash equivalent balances with any one financial institution and believes the likelihood of realizing material losses related to cash and cash equivalent balances is remote. Cash and cash equivalents are carried at their face amounts, which reasonably approximate their fair values and are Level 1 within the fair value hierarchy. Other Financial Instruments Rents receivable, accounts and construction payable and accrued expenses and other liabilities are carried at their face amounts, which reasonably approximate their fair values. The Company values its unsecured notes using quoted market prices, a Level 1 price within the fair value hierarchy. The Company values its notes payable and outstanding amounts under the Credit Facility and Term Loan using a discounted cash flow analysis on the expected cash flows of each instrument. This analysis reflects the contractual terms of the instrument, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The process also considers credit valuation adjustments to appropriately reflect the Company’s nonperformance risk. The Company has concluded that the value of its notes payable and amounts outstanding under its Credit Facility and Term Loan are Level 2 prices as the majority of the inputs used to value its positions fall within Level 2 of the fair value hierarchy. Financial Instruments Measured/Disclosed at Fair Value on a Recurring Basis The following tables summarize the classification between the three levels of the fair value hierarchy of the Company’s financial instruments measured/disclosed at fair value on a recurring basis (dollars in thousands): Quoted Prices in Active Markets for Significant Other Observable Significant Unobservable Identical Assets Inputs Inputs Description Total Fair Value (Level 1) (Level 2) (Level 3) 3/31/2016 Non-Designated Hedges Interest Rate Caps $ 64 $ — $ 64 $ — Cash Flow Hedges Interest Rate Caps 1 — 1 — Interest Rate Swaps (42,384 ) — (42,384 ) — Puts (8,265 ) — — (8,265 ) DownREIT units (1,427 ) (1,427 ) — — Indebtedness Unsecured notes (3,717,986 ) (3,717,986 ) — — Mortgage notes payable and unsecured term loan (2,757,911 ) — (2,757,911 ) — Total $ (6,527,908 ) $ (3,719,413 ) $ (2,800,230 ) $ (8,265 ) 12/31/2015 Non-Designated Hedges Interest Rate Caps $ 26 $ — $ 26 $ — Cash Flow Hedges Interest Rate Caps 5 — 5 — Interest Rate Swaps 5,422 — 5,422 — Puts (8,181 ) — — (8,181 ) DownREIT units (1,381 ) (1,381 ) — — Indebtedness Unsecured notes (3,668,417 ) (3,668,417 ) — — Mortgage notes payable and unsecured term loan (2,700,341 ) — (2,700,341 ) — Total $ (6,372,867 ) $ (3,669,798 ) $ (2,694,888 ) $ (8,181 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through the date on which this Form 10-Q was filed, the date on which these financial statements were issued, and identified the items below for discussion. The Company entered into $150,000,000 of forward interest rate swap agreements to reduce the impact of variability in interest rates on a portion of the Company's expected debt issuance activity in 2016 and 2017. At maturity of the agreements, the Company expects to cash settle the contracts and either pay or receive cash for the then current fair value. Assuming that the Company issues the debt as expected, the impact from settling these positions will then be recognized over the life of the issued debt as a yield adjustment. Using available capacity under its Credit Facility, the Company repaid $134,500,000 of variable rate debt secured by Avalon Walnut Creek at par in advance of its March 2046 maturity date. The Company acquired two parcels of land for development for an aggregate investment of $28,725,000 . If developed as expected, the development rights related to this land will contain an aggregate of 633 apartment homes for an aggregate projected total capital cost of $234,000,000 . |
Organization, Basis of Presen18
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation AvalonBay Communities, Inc. (the “Company,” which term, unless the context otherwise requires, refers to AvalonBay Communities, Inc. together with its subsidiaries), is a Maryland corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes under the Internal Revenue Code of 1986 (the “Code”). The Company focuses on the development, redevelopment, acquisition, ownership and operation of multifamily communities primarily in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. At March 31, 2016 , the Company owned or held a direct or indirect ownership interest in 258 operating apartment communities containing 75,379 apartment homes in 10 states and the District of Columbia, of which eleven communities containing 3,429 apartment homes were under reconstruction. In addition, the Company owned or held a direct or indirect interest in 24 communities under construction that are expected to contain an aggregate of 7,670 apartment homes when completed. The Company also owned or held a direct or indirect ownership interest in land or rights to land on which the Company expects to develop an additional 30 communities that, if developed as expected, will contain an estimated 9,745 apartment homes. The interim unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements required by GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements should be read in conjunction with the financial statements and notes included in the Company’s 2015 Annual Report on Form 10-K. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the operating results for the full year. Management believes the disclosures are adequate to ensure the information presented is not misleading. In the opinion of management, all adjustments and eliminations, consisting only of normal, recurring adjustments necessary for a fair presentation of the financial statements for the interim periods, have been included. Capitalized terms used without definition have meanings provided elsewhere in this Form 10-Q. |
Earnings per Common Share | Earnings per Common Share Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common shareholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per share (“EPS”). Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company enters into interest rate swap and interest rate cap agreements (collectively, “Hedging Derivatives”) for interest rate risk management purposes and in conjunction with certain variable rate secured debt to satisfy lender requirements. The Company does not enter into Hedging Derivative transactions for trading or other speculative purposes. The Company assesses the effectiveness of qualifying cash flow and fair value hedges, both at inception and on an on-going basis. Hedge ineffectiveness is reported as a component of general and administrative expenses. The fair values of Hedging Derivatives that are in an asset position are recorded in prepaid expenses and other assets. The fair value of Hedging Derivatives that are in a liability position are included in accrued expenses and other liabilities. Fair value changes for derivatives that are not in qualifying hedge relationships are reported as a component of interest expense, net. For the Hedging Derivative positions that the Company has determined qualify as effective cash flow hedges, the Company has recorded the effective portion of cumulative changes in the fair value of Hedging Derivatives in other comprehensive income (loss). Amounts recorded in other comprehensive income (loss) will be reclassified into earnings in the periods in which earnings are affected by the hedged cash flow. The effective portion of the change in fair value of the Hedging Derivatives that the Company has determined qualified as effective fair value hedges is reported as an adjustment to the carrying amount of the corresponding debt being hedged. |
Legal and Other Contingencies | Legal and Other Contingencies In January 2015, a fire occurred at the Company’s Avalon at Edgewater apartment community located in Edgewater, New Jersey. Edgewater consisted of two residential buildings. One building, containing 240 apartment homes, was destroyed. The second building, containing 168 apartment homes, suffered minimal damage and has been repaired. The Company is aware that third parties incurred significant property damage and are claiming other losses, such as relocation costs, as a result of the fire. The Company has established protocols for processing claims and has encouraged any party who sustained a loss to contact the Company’s insurance carrier to file a claim. To date, four putative class action lawsuits have been filed against the Company on behalf of Edgewater residents and others who may have been harmed by the fire. The court has consolidated these actions in the United States District Court for the District of New Jersey. In addition, 19 lawsuits representing approximately 138 individual plaintiffs have been filed in the Superior Court of New Jersey Bergen County - Law Division. Most of these cases have been consolidated by the court and the Company expects all of them to be consolidated shortly. The Company believes that it has meritorious defenses to the extent of damages claimed. Having incurred applicable deductibles, the Company currently believes that all of its remaining liability to third parties will be substantially covered by its insurance policies. However, the Company can give no assurances in this regard and continues to evaluate this matter. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain reclassifications have been made to amounts in prior years’ financial statements to conform to current year presentations as a result of changes in held for sale classification. |
Recently Adopted Accounting Standards | Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of share-based payment transactions, including income tax consequences, classification of awards as equity or liability, statement of cash flows classification and policy election options for forfeitures. The new standard requires either a prospective, retrospective or modified retrospective approach depending on the amendment type. The guidance will be effective in the first quarter of 2017 and allows for early adoption. The Company is assessing whether the new standard will have a material effect on its financial position or results of operations |
Organization, Basis of Presen19
Organization, Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of earnings per common share | The Company’s earnings per common share are determined as follows (dollars in thousands, except per share data): For the three months ended 3/31/2016 3/31/2015 Basic and diluted shares outstanding Weighted average common shares - basic 136,785,880 131,883,741 Weighted average DownREIT units outstanding 7,500 7,500 Effect of dilutive securities 589,664 1,284,532 Weighted average common shares - diluted 137,383,044 133,175,773 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 237,931 $ 208,144 Net income allocated to unvested restricted shares (632 ) (529 ) Net income attributable to common stockholders, adjusted $ 237,299 $ 207,615 Weighted average common shares - basic 136,785,880 131,883,741 Earnings per common share - basic $ 1.73 $ 1.57 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 237,931 $ 208,144 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships, including discontinued operations 10 9 Adjusted net income available to common stockholders $ 237,941 $ 208,153 Weighted average common shares - diluted 137,383,044 133,175,773 Earnings per common share - diluted $ 1.73 $ 1.56 |
Notes Payable, Unsecured Note20
Notes Payable, Unsecured Notes and Credit Facility (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of company's mortgage notes payable, unsecured notes and Credit Facility excluding mortgage notes secured by communities classified as held for sale | The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of March 31, 2016 and December 31, 2015 , as shown in the Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, “Real Estate Disposition Activities”). 3/31/2016 12/31/2015 Fixed rate unsecured notes (1) $ 3,575,000 $ 3,575,000 Term Loan 300,000 300,000 Fixed rate mortgage notes payable - conventional and tax-exempt (2) 1,609,236 1,561,109 Variable rate mortgage notes payable - conventional and tax-exempt (2) 1,044,598 1,045,182 Total mortgage notes payable and unsecured notes 6,528,834 6,481,291 Credit Facility — — Total mortgage notes payable, unsecured notes and Credit Facility $ 6,528,834 $ 6,481,291 _____________________________________ (1) Balances at March 31, 2016 and December 31, 2015 exclude $7,310 and $7,601 , respectively, of debt discount, and $20,836 and $21,725 , respectively, of deferred financing costs, as reflected in unsecured notes, net on the Company’s Condensed Consolidated Balance Sheets. (2) Balances at March 31, 2016 and December 31, 2015 exclude $16,652 and $19,686 , respectively, of debt premium, and $14,760 and $14,703 , respectively, of deferred financing costs, as reflected in mortgage notes payable on the Company’s Condensed Consolidated Balance Sheets. |
Scheduled payments and maturities of mortgage notes payable and unsecured notes outstanding | Scheduled payments and maturities of mortgage notes payable and unsecured notes outstanding at March 31, 2016 are as follows (dollars in thousands): Year Secured notes payments Secured notes maturities Unsecured notes maturities Stated interest rate of unsecured notes 2016 12,156 — 250,000 5.750 % 2017 17,166 709,791 250,000 5.700 % 2018 16,236 76,950 — N/A 2019 4,696 588,429 — N/A 2020 3,624 118,729 250,000 6.100 % 400,000 3.625 % 2021 3,551 27,844 250,000 3.950 % 300,000 LIBOR + 1.450% 2022 3,795 — 450,000 2.950 % 2023 4,040 — 350,000 4.200 % 250,000 2.850 % 2024 4,310 — 300,000 3.500 % 2025 4,553 84,835 525,000 3.450 % 300,000 3.500 % Thereafter 218,680 754,449 — N/A $ 292,807 $ 2,361,027 $ 3,875,000 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Summary of changes in equity | The following summarizes the changes in equity for the three months ended March 31, 2016 (dollars in thousands): Common stock Additional paid-in capital Accumulated earnings less dividends Accumulated other comprehensive loss Total equity Balance at December 31, 2015 $ 1,370 $ 10,068,532 $ (197,989 ) $ (31,387 ) $ 9,840,526 Net income attributable to common stockholders — — 237,931 — 237,931 Unrealized loss on cash flow hedges — — — (47,757 ) (47,757 ) Cash flow hedge loss reclassified to earnings — — — 1,374 1,374 Change in redemption value of redeemable noncontrolling interest — — (299 ) — (299 ) Dividends declared to common stockholders — — (185,168 ) — (185,168 ) Issuance of common stock, net of withholdings 2 (5,747 ) (1,274 ) — (7,019 ) Amortization of deferred compensation — 6,944 — — 6,944 Balance at March 31, 2016 $ 1,372 $ 10,069,729 $ (146,799 ) $ (77,770 ) $ 9,846,532 |
Investments in Real Estate En22
Investments in Real Estate Entities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Combined summary of the financial position of the entities accounted for using the equity method | The following is a combined summary of the financial position of the entities accounted for using the equity method as of the dates presented, excluding amounts associated with joint ventures formed with Equity Residential as part of the Archstone acquisition (dollars in thousands): 3/31/2016 12/31/2015 (unaudited) (unaudited) Assets: Real estate, net $ 1,111,906 $ 1,392,833 Other assets 59,975 57,044 Total assets $ 1,171,881 $ 1,449,877 Liabilities and partners’ capital: Mortgage notes payable and credit facility $ 782,988 $ 947,205 Other liabilities 21,250 20,471 Partners’ capital 367,643 482,201 Total liabilities and partners’ capital $ 1,171,881 $ 1,449,877 |
Combined summary of the operating results of the entities accounted for using the equity method | The following is a combined summary of the operating results of the entities accounted for using the equity method for the periods presented, excluding amounts associated with joint ventures formed with Equity Residential as part of the Archstone acquisition (dollars in thousands): For the three months ended 3/31/2016 3/31/2015 (unaudited) Rental and other income $ 36,955 $ 45,255 Operating and other expenses (14,170 ) (17,337 ) Gain on sale of communities 103,321 32,490 Interest expense, net (1) (20,001 ) (10,477 ) Depreciation expense (9,240 ) (11,902 ) Net income $ 96,865 $ 38,029 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of reconciliation of NOI to net income | A reconciliation of NOI to net income for the three months ended March 31, 2016 and 2015 is as follows (dollars in thousands): For the three months ended 3/31/2016 3/31/2015 Net income $ 237,877 $ 208,053 Indirect operating expenses, net of corporate income 16,537 15,399 Investments and investment management expense 1,145 1,034 Expensed acquisition, development and other pursuit costs, net of recoveries 3,462 1,187 Interest expense, net 43,410 45,573 General and administrative expense 11,404 10,468 Equity in income of unconsolidated real estate entities (27,969 ) (34,566 ) Depreciation expense 127,216 116,853 Income tax expense 37 15 Casualty and impairment (gain) loss, net (2,202 ) 5,788 Gain on sale of real estate assets (51,430 ) (70,958 ) Net operating income from real estate assets sold or held for sale (1) (721 ) (3,219 ) Net operating income $ 358,766 $ 295,627 __________________________________ (1) |
Schedule of net operating income from real estate assets sold or held for sale, not classified as discontinued operations | The following is a summary of NOI from real estate assets sold or held for sale for the periods presented (dollars in thousands): For the three months ended 3/31/2016 3/31/2015 Rental income from real estate assets sold or held for sale $ 1,193 $ 5,398 Operating expenses from real estate assets sold or held for sale (472 ) (2,179 ) Net operating income from real estate assets sold or held for sale $ 721 $ 3,219 |
Schedule of details of segment information | For the three months ended Total revenue NOI % NOI change from prior year Gross real estate (1) For the period ended March 31, 2016 Established New England $ 58,414 $ 37,270 15.9 % $ 1,860,863 Metro NY/NJ 87,789 59,764 3.2 % 2,883,958 Mid-Atlantic 57,530 40,063 1.3 % 2,330,106 Pacific Northwest 21,583 15,745 6.7 % 795,228 Northern California 78,452 60,248 11.5 % 2,651,741 Southern California 71,257 51,041 9.8 % 2,633,553 Total Established 375,025 264,131 7.9 % 13,155,449 Other Stabilized (2) 77,505 59,308 N/A 2,196,700 Development / Redevelopment 53,251 35,327 N/A 3,802,952 Land Held for Future Development N/A N/A N/A 477,072 Non-allocated (3) 1,524 N/A N/A 89,056 Total $ 507,305 $ 358,766 21.4 % $ 19,721,229 For the period ended March 31, 2015 Established New England $ 46,034 $ 26,800 (3.8 )% $ 1,429,727 Metro NY/NJ 93,183 64,366 2.8 % 3,141,136 Mid-Atlantic 51,704 36,031 (0.8 )% 2,170,104 Pacific Northwest 18,489 13,373 9.0 % 718,884 Northern California 65,515 49,734 11.5 % 2,405,670 Southern California 62,324 43,517 13.1 % 2,501,165 Total Established 337,249 233,821 5.3 % 12,366,686 Other Stabilized 54,083 34,818 N/A 2,100,918 Development / Redevelopment 43,026 26,988 N/A 3,147,624 Land Held for Future Development N/A N/A N/A 529,069 Non-allocated (3) 2,611 N/A N/A 29,217 Total $ 436,969 $ 295,627 13.4 % $ 18,173,514 __________________________________ (1) Does not include gross real estate assets held for sale of $20,341 and $201,829 as of March 31, 2016 and 2015 , respectively. (2) Total revenue and NOI for the three months ended March 31, 2016 includes $20,306 in business interruption insurance proceeds. (3) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of information with respect to stock options granted | Information with respect to stock options granted under the Company’s 1994 Stock Option and Incentive Plan (the “1994 Plan”) and its 2009 Stock Option and Incentive Plan (the “2009 Plan”) is as follows: 2009 Plan shares Weighted average exercise price per share 1994 Plan shares Weighted average exercise price per share Options Outstanding, December 31, 2015 249,178 $ 122.17 82,195 $ 103.27 Exercised (6,660 ) 126.99 (7,870 ) 100.36 Forfeited — — — — Options Outstanding, March 31, 2016 242,518 $ 122.04 74,325 $ 103.57 Options Exercisable, March 31, 2016 242,518 $ 122.04 74,325 $ 103.57 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of summary of consolidated Hedging Derivatives, excluding derivatives executed to hedge debt on communities classified as held for sale | The following table summarizes the consolidated derivative positions at March 31, 2016 (dollars in thousands): Non-designated Hedges Interest Rate Caps Cash Flow Hedges Interest Rate Caps Cash Flow Hedges Interest Rate Swaps Notional balance $ 724,700 $ 36,525 $ 1,050,000 Weighted average interest rate (1) 1.9 % 2.7 % N/A Weighted average swapped/capped interest rate 5.8 % 5.9 % 2.3 % Earliest maturity date Jul 2016 Apr 2019 May 2016 Latest maturity date Feb 2021 Apr 2019 Nov 2017 ____________________________________ (1) For interest rate caps, represents the weighted average interest rate on the hedged debt. |
Schedule of summary of classification between the three levels of the fair value hierarchy of the Company's financial instruments measured at fair value on a recurring basis | The following tables summarize the classification between the three levels of the fair value hierarchy of the Company’s financial instruments measured/disclosed at fair value on a recurring basis (dollars in thousands): Quoted Prices in Active Markets for Significant Other Observable Significant Unobservable Identical Assets Inputs Inputs Description Total Fair Value (Level 1) (Level 2) (Level 3) 3/31/2016 Non-Designated Hedges Interest Rate Caps $ 64 $ — $ 64 $ — Cash Flow Hedges Interest Rate Caps 1 — 1 — Interest Rate Swaps (42,384 ) — (42,384 ) — Puts (8,265 ) — — (8,265 ) DownREIT units (1,427 ) (1,427 ) — — Indebtedness Unsecured notes (3,717,986 ) (3,717,986 ) — — Mortgage notes payable and unsecured term loan (2,757,911 ) — (2,757,911 ) — Total $ (6,527,908 ) $ (3,719,413 ) $ (2,800,230 ) $ (8,265 ) 12/31/2015 Non-Designated Hedges Interest Rate Caps $ 26 $ — $ 26 $ — Cash Flow Hedges Interest Rate Caps 5 — 5 — Interest Rate Swaps 5,422 — 5,422 — Puts (8,181 ) — — (8,181 ) DownREIT units (1,381 ) (1,381 ) — — Indebtedness Unsecured notes (3,668,417 ) (3,668,417 ) — — Mortgage notes payable and unsecured term loan (2,700,341 ) — (2,700,341 ) — Total $ (6,372,867 ) $ (3,669,798 ) $ (2,694,888 ) $ (8,181 ) |
Organization, Basis of Presen26
Organization, Basis of Presentation and Significant Accounting Policies (Details) | Mar. 31, 2016statecommunityhome |
Organization and Basis of Presentation | |
Number of operating apartment communities | community | 258 |
Number of apartment homes included in operating apartment communities owned | home | 75,379 |
Number of states where operating apartment communities owned are located | state | 10 |
Number of communities with apartments under reconstruction | community | 11 |
Number of apartment homes under reconstruction | home | 3,429 |
Number of owned communities under construction | community | 24 |
Expected number of apartment homes under construction | home | 7,670 |
Communities under development rights | community | 30 |
Estimated number of apartment homes in communities to be developed | home | 9,745 |
Organization, Basis of Presen27
Organization, Basis of Presentation and Significant Accounting Policies (Details 2) $ / shares in Units, $ in Thousands | 3 Months Ended | 15 Months Ended | |
Mar. 31, 2016USD ($)communityClaimhomeplaintiffbuilding$ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2016USD ($)communityhomebuilding | |
Loss Contingencies [Line Items] | |||
Impairment of Real Estate | $ (2,202) | $ 5,788 | |
Number of Real Estate Properties | community | 258 | 258 | |
Number of apartment homes included in operating apartment communities owned | home | 75,379 | 75,379 | |
Basic and diluted shares outstanding | |||
Weighted average common shares - basic | shares | 136,785,880 | 131,883,741 | |
Weighted average DownREIT units outstanding (in shares) | shares | 7,500 | 7,500 | |
Effect of dilutive securities (in shares) | shares | 589,664 | 1,284,532 | |
Weighted average common shares - diluted | shares | 137,383,044 | 133,175,773 | |
Calculation of Earnings per Share - basic | |||
Net income attributable to common stockholders | $ 237,931 | $ 208,144 | |
Net income allocated to unvested restricted shares | (632) | (529) | |
Net income attributable to common stockholders, adjusted | $ 237,299 | $ 207,615 | |
Weighted average common shares - basic | shares | 136,785,880 | 131,883,741 | |
Earnings per common share - basic (in dollars per share) | $ / shares | $ 1.73 | $ 1.57 | |
Calculation of Earnings per Share - diluted | |||
Net income attributable to common stockholders | $ 237,931 | $ 208,144 | |
Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships, including discontinued operations | 10 | 9 | |
Adjusted net income available to common stockholders | $ 237,941 | $ 208,153 | |
Weighted average common shares - diluted | shares | 137,383,044 | 133,175,773 | |
Earnings per common share - diluted (in dollars per share) | $ / shares | $ 1.73 | $ 1.56 | |
Estimated forfeiture rate of stock options (as a percent) | 0.80% | ||
Avalon at Edgewater [Member] | |||
Loss Contingencies [Line Items] | |||
Impairment of Real Estate | $ (8,702) | $ 793 | |
Gain on Business Interruption Insurance Recovery | $ 20,306 | ||
Number of Real Estate Properties | building | 2 | 2 | |
Number of apartment homes included in operating apartment communities owned | home | 168 | 168 | |
Loss Contingency New Class Action Claims Filed Number | Claim | 4 | ||
Loss Contingency, New Claims Filed, Number | Claim | 19 | ||
Loss Contingency, Number of Plaintiffs | plaintiff | 138 | ||
Insurance Proceeds | $ 29,008 | $ 22,142 | $ 73,008 |
Number Of Real Estate Properties, Uninhabitable | building | 1 | 1 | |
Number Of Units In Real Estate Property, Uninhabitable | home | 240 | 240 |
Interest Capitalized (Details)
Interest Capitalized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest Capitalized | ||
Capitalized interest during the development and redevelopment of real estate assets | $ 20,609 | $ 19,030 |
Notes Payable, Unsecured Note29
Notes Payable, Unsecured Notes and Credit Facility (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Notes Payable, Unsecured Notes and Credit Facility | |||
Total notes payable and unsecured notes | $ 6,528,834 | $ 6,481,291 | |
Credit Facility | 0 | 0 | |
Total mortgage notes payable, unsecured notes and Credit Facility | 6,528,834 | 6,481,291 | |
Unsecured notes | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Fixed rate notes | [1] | 3,575,000 | 3,575,000 |
Total notes payable and unsecured notes | 3,875,000 | ||
Amount of debt discount | 7,310 | 7,601 | |
Deferred Finance Costs, Net | 20,836 | 21,725 | |
Term Loan | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Variable rate notes | 300,000 | 300,000 | |
Secured notes | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Fixed rate notes | [2] | 1,609,236 | 1,561,109 |
Variable rate notes | 1,044,598 | 1,045,182 | |
Total notes payable and unsecured notes | 2,361,027 | ||
Deferred Finance Costs, Net | 14,760 | 14,703 | |
Amount of debt premium | 16,652 | 19,686 | |
Credit Facility | |||
Notes Payable, Unsecured Notes and Credit Facility | |||
Credit Facility | $ 0 | $ 0 | |
[1] | Balances at March 31, 2016 and December 31, 2015 exclude $7,310 and $7,601, respectively, of debt discount, and $20,836 and $21,725, respectively, of deferred financing costs, as reflected in unsecured notes, net on the Company’s Condensed Consolidated Balance Sheets. | ||
[2] | Balances at March 31, 2016 and December 31, 2015 exclude $16,652 and $19,686, respectively, of debt premium, and $14,760 and $14,703, respectively, of deferred financing costs, as reflected in mortgage notes payable on the Company’s Condensed Consolidated Balance Sheets. |
Notes Payable, Unsecured Note30
Notes Payable, Unsecured Notes and Credit Facility (Details 2) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 29, 2016USD ($) | Mar. 31, 2016USD ($)community | Dec. 31, 2015USD ($) | Jan. 31, 2016USD ($) | ||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Number of operating apartment communities | community | 258 | ||||
Variable rate unsecured credit facility | $ 0 | $ 0 | |||
Mortgage notes payable | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Mortgage notes payable held by wholly owned subsidiaries guaranteed by the Company | $ 234,500,000 | ||||
Notes Payable Maturities 2016 [Member] | Mortgage notes payable | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Repayments of secured mortgages | $ 16,212,000 | ||||
Current interest rate (as a percent) | 3.32% | ||||
Notes Payable Maturities 2016 [Member] | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | ||||
Variable rate unsecured credit facility | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Available borrowing capacity | $ 1,500,000,000 | 1,300,000,000 | |||
Line of credit facility, extension period | 9 months | ||||
Extension fee | $ 1,500,000 | ||||
Period of borrowing rate assumed | 1 month | ||||
Annual facility fee | $ 1,875,000 | ||||
Outstanding balance of letters of credit | 51,233,000 | 43,049,000 | |||
Variable rate unsecured credit facility | 0 | $ 0 | |||
Net carrying value of apartment communities and improved land parcels securing debt | $ 3,364,440,000 | ||||
Percent of Credit Facility Available to Competitive Bid Option | 65.00% | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.125% | 0.15% | |||
Fixed rate mortgage notes payable | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Weighted average interest rate, debt (as a percent) | 4.50% | 4.60% | |||
Variable rate mortgage notes payable, unsecured term loan and Credit Facility | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Weighted average interest rate, debt (as a percent) | 1.90% | 1.80% | |||
LIBOR | Variable Rate Unsecured Term Loan [Member] | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument variable rate | LIBOR | ||||
Debt instrument, basis spread on variable rate (as a percent) | 1.45% | ||||
LIBOR | Secured Mortgage | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument variable rate | LIBOR | ||||
LIBOR | Variable rate unsecured credit facility | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Current interest rate (as a percent) | 1.26% | ||||
Debt instrument, basis spread on variable rate (as a percent) | 0.825% | ||||
Minimum [Member] | Variable rate unsecured credit facility | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument, basis spread on variable rate (as a percent) | 0.80% | ||||
Maximum [Member] | Variable rate unsecured credit facility | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument, basis spread on variable rate (as a percent) | 1.55% | ||||
Avalon Hoboken [Member] | Notes Payable Maturities 2020 [Member] | Mortgage notes payable | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | [1] | $ 67,904,000 | |||
Current interest rate (as a percent) | 4.18% | ||||
[1] | Balances at March 31, 2016 and December 31, 2015 exclude $16,652 and $19,686, respectively, of debt premium, and $14,760 and $14,703, respectively, of deferred financing costs, as reflected in mortgage notes payable on the Company’s Condensed Consolidated Balance Sheets. |
Notes Payable, Unsecured Note31
Notes Payable, Unsecured Notes and Credit Facility (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 6,528,834 | $ 6,481,291 |
Secured notes | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 292,807 | |
Mortgage notes payable and unsecured notes | 2,361,027 | |
Secured notes | Notes Payable Maturities 2016 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 12,156 | |
Mortgage notes payable and unsecured notes | 0 | |
Secured notes | Notes Payable Maturities 2017 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 17,166 | |
Mortgage notes payable and unsecured notes | 709,791 | |
Secured notes | Notes Payable Maturities 2018 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 16,236 | |
Mortgage notes payable and unsecured notes | 76,950 | |
Secured notes | Notes payable maturing in 2019 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 4,696 | |
Mortgage notes payable and unsecured notes | 588,429 | |
Secured notes | Notes Payable Maturities 2020 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 3,624 | |
Mortgage notes payable and unsecured notes | 118,729 | |
Secured notes | Notes Payable Maturities 2021 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 3,551 | |
Mortgage notes payable and unsecured notes | 27,844 | |
Secured notes | Notes payable maturing in 2022 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 3,795 | |
Secured notes | Notes payable maturing in 2023 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 4,040 | |
Secured notes | Notes Payable Maturities 2024 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 4,310 | |
Secured notes | Notes Payable Maturities 2025 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 4,553 | |
Mortgage notes payable and unsecured notes | 84,835 | |
Secured notes | Notes payable with maturities after 2023 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 218,680 | |
Mortgage notes payable and unsecured notes | 754,449 | |
Unsecured notes | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | 3,875,000 | |
Unsecured notes | Notes Payable Maturities 2016 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 250,000 | |
Stated interest rate of unsecured notes (as a percent) | 5.75% | |
Unsecured notes | Notes Payable Maturities 2017 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 250,000 | |
Stated interest rate of unsecured notes (as a percent) | 5.70% | |
Unsecured notes | Notes Payable 6.100 Percent Maturities 2020 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 250,000 | |
Stated interest rate of unsecured notes (as a percent) | 6.10% | |
Unsecured notes | Notes Payable 3.625 Percent Maturities 2020 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 400,000 | |
Stated interest rate of unsecured notes (as a percent) | 3.625% | |
Unsecured notes | Notes payable maturing in 2021 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 250,000 | |
Stated interest rate of unsecured notes (as a percent) | 3.95% | |
Unsecured notes | Term Loan | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 300,000 | |
Unsecured notes | Term Loan | LIBOR | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Debt instrument variable rate | LIBOR | |
Debt instrument, basis spread on variable rate (as a percent) | 1.45% | |
Unsecured notes | Notes payable maturing in 2022 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 450,000 | |
Stated interest rate of unsecured notes (as a percent) | 2.95% | |
Unsecured notes | Notes payable maturing in 2023 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 350,000 | |
Stated interest rate of unsecured notes (as a percent) | 4.20% | |
Unsecured notes | Notes Payable 2.850 Maturities 2023 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 250,000 | |
Stated interest rate of unsecured notes (as a percent) | 2.85% | |
Unsecured notes | Notes Payable Maturities 2024 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 300,000 | |
Stated interest rate of unsecured notes (as a percent) | 3.50% | |
Unsecured notes | Notes Payable 3.450 Maturities 2025 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 525,000 | |
Stated interest rate of unsecured notes (as a percent) | 3.45% | |
Unsecured notes | Notes Payable 3.500 Maturities 2025 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 300,000 | |
Stated interest rate of unsecured notes (as a percent) | 3.50% | |
Unsecured notes | Notes payable with maturities after 2023 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 0 |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, Share-based Compensation, Forfeited | 12 | |
Changes in equity | ||
Beginning Balance | $ 9,840,526 | |
Net income attributable to common stockholders | 237,931 | $ 208,144 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | (47,757) | (30) |
Cash flow hedge loss reclassified to earnings | 1,374 | $ 1,595 |
Change in redemption value of redeemable noncontrolling interest | (299) | |
Dividends declared to common stockholders | (185,168) | |
Issuance of common stock, net of withholdings | (7,019) | |
Amortization of deferred compensation | 6,944 | |
Ending Balance | 9,846,532 | |
Common stock | ||
Changes in equity | ||
Beginning Balance | 1,370 | |
Issuance of common stock, net of withholdings | 2 | |
Ending Balance | 1,372 | |
Additional paid-in capital | ||
Changes in equity | ||
Beginning Balance | 10,068,532 | |
Change in redemption value of redeemable noncontrolling interest | 0 | |
Issuance of common stock, net of withholdings | (5,747) | |
Amortization of deferred compensation | 6,944 | |
Ending Balance | 10,069,729 | |
Accumulated earnings less dividends | ||
Changes in equity | ||
Beginning Balance | (197,989) | |
Net income attributable to common stockholders | 237,931 | |
Change in redemption value of redeemable noncontrolling interest | (299) | |
Dividends declared to common stockholders | (185,168) | |
Issuance of common stock, net of withholdings | (1,274) | |
Ending Balance | (146,799) | |
Accumulated other comprehensive loss | ||
Changes in equity | ||
Beginning Balance | (31,387) | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | (47,757) | |
Cash flow hedge loss reclassified to earnings | 1,374 | |
Ending Balance | $ (77,770) |
Equity (Details 2)
Equity (Details 2) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||
Common stock, shares authorized | 280,000,000 | 280,000,000 | |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | |
Common stock shares issued in connection with stock options exercised | 14,530 | ||
Common stock issued through the dividend reinvestment plan (in shares) | 576 | 484 | |
Number of shares of stock grants withheld | 48,189 | 32,887 | |
Stock Issued During Period, Shares, Share-based Compensation, Forfeited | 12 | ||
Issuance of common stock, net | $ 1,102,000 | $ 1,973,000 | |
Continuous Equity Program CEP IV [Member] | |||
Class of Stock [Line Items] | |||
Maximum value of shares of common stock that can be sold (in dollars) | $ 1,000,000,000 | ||
Common stock shares issued | 0 | ||
Maximum [Member] | Continuous Equity Program CEP IV [Member] | |||
Class of Stock [Line Items] | |||
Percentage of compensation received by sales agent | 2.00% | ||
Restricted Stock and Restricted Stock Converted From Performance Shares [Member] | |||
Class of Stock [Line Items] | |||
Restricted stock granted | 193,171 |
Investments in Real Estate En34
Investments in Real Estate Entities (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)communityentityhome | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Investment in Real Estate Entities | |||
Number of Apartment Communities Sold | community | 1 | ||
Gain on sale of communities | $ 103,321 | $ 32,490 | |
Long-term Debt | $ 6,528,834 | $ 6,481,291 | |
Unconsolidated real estate entities | |||
Investment in Real Estate Entities | |||
Number of unconsolidated real estate entities | entity | 5 | ||
Unconsolidated real estate entities | Minimum | |||
Investment in Real Estate Entities | |||
Ownership interest percentage | 20.00% | ||
Unconsolidated real estate entities | Maximum | |||
Investment in Real Estate Entities | |||
Ownership interest percentage | 31.30% | ||
Avalon Bay Value Added Fund II LP [Member] | |||
Investment in Real Estate Entities | |||
Repayments of secured mortgages | $ 68,091 | ||
Gains (Losses) on Extinguishment of Debt | $ 1,207 | ||
Avalon Bay Value Added Fund II LP [Member] | Eaves Rancho San Diego [Member] | |||
Investment in Real Estate Entities | |||
Number of apartment homes sold | home | 676 | ||
Proceeds from sale of real estate | $ 158,000 | ||
Gain on sale of communities | $ 13,057 | ||
US Fund [Member] | |||
Investment in Real Estate Entities | |||
Number of Apartment Communities Sold | community | 2 | ||
Repayments of secured mortgages | $ 94,822 | ||
Gains (Losses) on Extinguishment of Debt | $ 2,003 | ||
US Fund [Member] | Archstone Boca Town Center [Member] | |||
Investment in Real Estate Entities | |||
Number of apartment homes sold | home | 252 | ||
Proceeds from sale of real estate | $ 56,300 | ||
Gain on sale of communities | $ 4,120 | ||
US Fund [Member] | Avalon Kips Bay [Member] | |||
Investment in Real Estate Entities | |||
Number of apartment homes sold | home | 209 | ||
Proceeds from sale of real estate | $ 173,000 | ||
Gain on sale of communities | $ 12,448 |
Investments in Real Estate En35
Investments in Real Estate Entities (Details 2) | 3 Months Ended | 12 Months Ended | 15 Months Ended | |||
Mar. 31, 2016USD ($)communityhome | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)land_parcel | Mar. 31, 2016USD ($)community | Jan. 31, 2016USD ($) | ||
Assets: | ||||||
Real estate, net | $ 1,111,906,000 | $ 1,392,833,000 | $ 1,111,906,000 | |||
Other assets | 59,975,000 | 57,044,000 | 59,975,000 | |||
Total assets | 1,171,881,000 | 1,449,877,000 | 1,171,881,000 | |||
Liabilities and partners' capital: | ||||||
Mortgage notes payable and credit facility | 782,988,000 | 947,205,000 | 782,988,000 | |||
Other liabilities | 21,250,000 | 20,471,000 | 21,250,000 | |||
Partners' capital | 367,643,000 | 482,201,000 | 367,643,000 | |||
Total liabilities and partners' capital | 1,171,881,000 | 1,449,877,000 | 1,171,881,000 | |||
Combined summary of the operating results of the accounted for using the equity method | ||||||
Rental and other income | 36,955,000 | $ 45,255,000 | ||||
Operating and other expenses | (14,170,000) | (17,337,000) | ||||
Gain on sale of communities | 103,321,000 | 32,490,000 | ||||
Interest expense, net | (20,001,000) | (10,477,000) | ||||
Depreciation expense | (9,240,000) | (11,902,000) | ||||
Net income | 96,865,000 | 38,029,000 | ||||
Costs in excess of equity in underlying net assets of the respective investments | 39,871,000 | $ 40,978,000 | $ 39,871,000 | |||
Equity in income of unconsolidated real estate entities | 27,969,000 | 34,566,000 | ||||
Business Combination, Acquisition Related Costs, Abandoned Pursuit Costs | 1,846,000 | 1,187,000 | ||||
Casualty and Impairment Loss (Gain) | $ (2,202,000) | 5,788,000 | ||||
Number of Land Parcels Impaired | land_parcel | 2 | |||||
Number of Land Parcels Held For Sale | community | 3 | 3 | ||||
Other than Temporary Impairment Losses, Investments | $ 0 | 0 | ||||
Real Estate Investment Property, Net | $ 14,226,433,000 | $ 13,834,297,000 | $ 14,226,433,000 | |||
Number of Communities Acquired | community | 2 | |||||
Avalon Hoboken [Member] | ||||||
Combined summary of the operating results of the accounted for using the equity method | ||||||
Number of Apartment Homes, Acquired | home | 217 | |||||
Business Combination, Consideration Transferred | $ 129,700,000 | |||||
Avalon Potomac Yard [Member] | ||||||
Combined summary of the operating results of the accounted for using the equity method | ||||||
Number of Apartment Homes, Acquired | home | 323 | |||||
Business Combination, Consideration Transferred | $ 108,250,000 | |||||
Funds [Member] | ||||||
Equity method investment | ||||||
Gains (Losses) on Extinguishment of Debt | 10,864,000 | |||||
Fund II | ||||||
Equity method investment | ||||||
Gains (Losses) on Extinguishment of Debt | 1,207,000 | |||||
Milford Land [Member] | ||||||
Combined summary of the operating results of the accounted for using the equity method | ||||||
Casualty and Impairment Loss (Gain) | 6,500,000 | |||||
Avalon at Edgewater [Member] | ||||||
Combined summary of the operating results of the accounted for using the equity method | ||||||
Casualty and Impairment Loss (Gain) | (8,702,000) | 793,000 | ||||
Insurance Proceeds | 29,008,000 | 22,142,000 | 73,008,000 | |||
Real Estate Investment Property, Net | 21,844,000 | $ 21,844,000 | ||||
New England [Member] | ||||||
Combined summary of the operating results of the accounted for using the equity method | ||||||
Casualty and Impairment Loss (Gain) | $ 4,195,000 | |||||
New England [Member] | Avalon at Edgewater [Member] | ||||||
Combined summary of the operating results of the accounted for using the equity method | ||||||
Casualty and Impairment Loss (Gain) | $ 26,039,000 | |||||
Notes Payable Maturities 2020 [Member] | Mortgage notes payable | Avalon Hoboken [Member] | ||||||
Combined summary of the operating results of the accounted for using the equity method | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.18% | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | [1] | $ 67,904,000 | ||||
[1] | Balances at March 31, 2016 and December 31, 2015 exclude $16,652 and $19,686, respectively, of debt premium, and $14,760 and $14,703, respectively, of deferred financing costs, as reflected in mortgage notes payable on the Company’s Condensed Consolidated Balance Sheets. |
Real Estate Disposition Activ36
Real Estate Disposition Activities (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)communityhome | Mar. 31, 2015USD ($) | |
Summary of income from discontinued operations | ||
Number of Apartment Communities Sold | community | 1 | |
Gain on sale of communities | $ 51,430 | $ 70,936 |
Gain on sale of real estate | 0 | 22 |
Impairment of Real Estate | $ (2,202) | $ 5,788 |
Number of Land Parcels Held For Sale | community | 3 | |
Eaves Trumbull [Member] | ||
Summary of income from discontinued operations | ||
Apartment homes | home | 340 | |
Proceeds from Sale of Real Estate | $ 70,250 | |
Gain on sale of communities | $ 51,430 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Reconciliation of NOI to net income | |||
Net income | $ 237,877 | $ 208,053 | |
Indirect operating expenses, net of corporate income | 16,537 | 15,399 | |
Investments and investment management expense | 1,145 | 1,034 | |
Business Combination, Acquisition Related Costs | 3,462 | 1,187 | |
Interest expense, net | [1] | 43,410 | 45,573 |
General and administrative expense | 11,404 | 10,468 | |
Equity in (income) loss of unconsolidated real estate entities | (27,969) | (34,566) | |
Depreciation expense | [1] | 127,216 | 116,853 |
Income Tax Expense (Benefit) | 37 | 15 | |
Casualty and Impairment Loss (Gain) | (2,202) | 5,788 | |
Gain on sale of real estate assets in continuing operations | 51,430 | 70,958 | |
Net operating income from real estate assets sold or held for sale (1) | (721) | (3,219) | |
Net operating income | $ 358,766 | $ 295,627 | |
[1] | Represents NOI from real estate assets sold or held for sale that are not otherwise classified as discontinued operations. |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting [Abstract] | ||
Rental income from real estate assets sold or held for sale | $ 1,193 | $ 5,398 |
Operating expenses from real estate assets sold or held for sale | (472) | (2,179) |
Income (Loss) From Assets Held for Sale, Not Classified as Discontinued Operations | $ 721 | $ 3,219 |
Segment Reporting (Details 3)
Segment Reporting (Details 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Segment Reporting | |||
Total revenue | $ 508,498 | $ 442,367 | |
NOI | $ 358,766 | $ 295,627 | |
% NOI change from prior year | 21.40% | 13.40% | |
Gross real estate | [1] | $ 19,721,229 | $ 18,173,514 |
Gross real estate assets held for sale | 20,341 | 201,829 | |
Operating Segments | Established | |||
Segment Reporting | |||
Total revenue | 375,025 | 337,249 | |
NOI | $ 264,131 | $ 233,821 | |
% NOI change from prior year | 7.90% | 5.30% | |
Gross real estate | $ 13,155,449 | $ 12,366,686 | |
Operating Segments | Established | New England [Member] | |||
Segment Reporting | |||
Total revenue | 58,414 | 46,034 | |
NOI | $ 37,270 | $ 26,800 | |
% NOI change from prior year | 15.90% | (3.80%) | |
Gross real estate | $ 1,860,863 | $ 1,429,727 | |
Operating Segments | Established | Metro NY/NJ | |||
Segment Reporting | |||
Total revenue | 87,789 | 93,183 | |
NOI | $ 59,764 | $ 64,366 | |
% NOI change from prior year | 3.20% | 2.80% | |
Gross real estate | $ 2,883,958 | $ 3,141,136 | |
Operating Segments | Established | Mid-Atlantic | |||
Segment Reporting | |||
Total revenue | 57,530 | 51,704 | |
NOI | $ 40,063 | $ 36,031 | |
% NOI change from prior year | 1.30% | (0.80%) | |
Gross real estate | $ 2,330,106 | $ 2,170,104 | |
Operating Segments | Established | Pacific Northwest | |||
Segment Reporting | |||
Total revenue | 21,583 | 18,489 | |
NOI | $ 15,745 | $ 13,373 | |
% NOI change from prior year | 6.70% | 9.00% | |
Gross real estate | $ 795,228 | $ 718,884 | |
Operating Segments | Established | Northern California | |||
Segment Reporting | |||
Total revenue | 78,452 | 65,515 | |
NOI | $ 60,248 | $ 49,734 | |
% NOI change from prior year | 11.50% | 11.50% | |
Gross real estate | $ 2,651,741 | $ 2,405,670 | |
Operating Segments | Established | Southern California | |||
Segment Reporting | |||
Total revenue | 71,257 | 62,324 | |
NOI | $ 51,041 | $ 43,517 | |
% NOI change from prior year | 9.80% | 13.10% | |
Gross real estate | $ 2,633,553 | $ 2,501,165 | |
Operating Segments | Other Stabilized | |||
Segment Reporting | |||
Total revenue | 77,505 | 54,083 | |
NOI | 59,308 | 34,818 | |
Gross real estate | 2,196,700 | 2,100,918 | |
Operating Segments | Development / Redevelopment | |||
Segment Reporting | |||
Total revenue | 53,251 | 43,026 | |
NOI | 35,327 | 26,988 | |
Gross real estate | 3,802,952 | 3,147,624 | |
Land Held for Future Development | |||
Segment Reporting | |||
Gross real estate | 477,072 | 529,069 | |
Non-allocated | |||
Segment Reporting | |||
Total revenue | [2] | 1,524 | 2,611 |
Gross real estate | 89,056 | 29,217 | |
Continuing Operations | |||
Segment Reporting | |||
Total revenue | 507,305 | $ 436,969 | |
Avalon at Edgewater [Member] | |||
Segment Reporting | |||
Gain on Business Interruption Insurance Recovery | $ 20,306 | ||
[1] | Does not include gross real estate assets held for sale of $20,341 and $201,829 as of | ||
[2] | Total revenue and NOI for the three months ended March 31, 2016 includes $20,306 in business interruption insurance proceeds. |
Stock-Based Compensation Plan40
Stock-Based Compensation Plans (Details) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Shares | |
Exercised (in shares) | (14,530) |
2009 Plan | Stock Options | |
Shares | |
Options outstanding at the beginning of the period (in shares) | 249,178 |
Exercised (in shares) | (6,660) |
Forfeited (in shares) | 0 |
Options outstanding at the end of the period (in shares) | 242,518 |
Options exercisable at the end of the period (in shares) | 242,518 |
Weighted average exercise price per share | |
Options outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 122.17 |
Exercised (in dollars per share) | $ / shares | 126.99 |
Forfeited (in dollars per share) | $ / shares | 0 |
Options outstanding at the end of the period (in dollars per share) | $ / shares | 122.04 |
Options exercisable at the end of the period (in dollars per share) | $ / shares | $ 122.04 |
1994 Plan | Stock Options | |
Shares | |
Options outstanding at the beginning of the period (in shares) | 82,195 |
Exercised (in shares) | (7,870) |
Forfeited (in shares) | 0 |
Options outstanding at the end of the period (in shares) | 74,325 |
Options exercisable at the end of the period (in shares) | 74,325 |
Weighted average exercise price per share | |
Options outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 103.27 |
Exercised (in dollars per share) | $ / shares | 100.36 |
Forfeited (in dollars per share) | $ / shares | 0 |
Options outstanding at the end of the period (in dollars per share) | $ / shares | 103.57 |
Options exercisable at the end of the period (in dollars per share) | $ / shares | $ 103.57 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details 2) - Performance Shares [Member] | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Performance awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 238,266 |
Restricted stock granted | 93,031 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Increase (Decrease) in Awards Based on Performance | 36,091 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Converted to Restricted Stock | (115,618) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (494) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 251,276 |
Weighted average grant date fair value per award | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 119.65 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 141.88 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Change in Awards Based on Performance, Weighted Average Grant Date Fair Value | $ / shares | 91.57 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Converted to Restricted Stock, Weighted Average Grant Date Fair Value | $ / shares | 91.57 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 151.82 |
Share-based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period Based On Total Shareholder Metrics | 60,229 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 136.71 |
Share-based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period Based On Financial Metrics | 32,802 |
Stock-Based Compensation Plan42
Stock-Based Compensation Plans Stock-Based Compensation Plans (Details 3) - Performance Shares [Member] | 3 Months Ended |
Mar. 31, 2016$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 15.20% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.30% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 22.80% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.44% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 0.88% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 131.24 |
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions Weighted Average Historical Volatility Rate | 50.00% |
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions Weighted Average Implied Volatility Rate | 50.00% |
Stock-Based Compensation Plan43
Stock-Based Compensation Plans Stock-Based Compensation Plans (Details 4) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restricted Stock [Member] | ||
Restricted stock shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 147,884 | |
Restricted stock granted | 77,553 | 58,819 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (79,408) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (499) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 145,530 | |
Restricted stock shares weighted average grant date fair value per share | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 146.21 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 161.56 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 140.65 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 152.87 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 157.40 | |
Restricted Stock Converted From Performance Shares [Member] | ||
Restricted stock shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 98,347 | |
Restricted stock granted | 115,618 | 95,826 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (36,505) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 177,460 |
Stock-Based Compensation Plan44
Stock-Based Compensation Plans (Details 5) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Additional disclosures | |||
Stock issued in connection with stock grants (in shares) | 154,645 | ||
Stock-based compensation expense | $ 3,742 | $ 3,883 | |
Capitalized stock-based compensation cost | $ 3,048 | $ 3,244 | |
Performance Shares [Member] | |||
Additional disclosures | |||
Restricted stock granted | 93,031 | ||
Restricted stock earned based on total shareholder return metrics related to common stock (in units) | 60,229 | ||
Restricted stock earned based on operating performance and leverage metrics | 32,802 | ||
Baseline share value (in dollars per share) | $ 161.56 | ||
Dividend yield (as a percent) | 3.30% | ||
Estimated volatility, Minimum (as a percent) | 15.20% | ||
Estimated volatility, Maximum (as a percent) | 22.80% | ||
Historical volatility (as a percent) | 50.00% | ||
Implied volatility (as a percent) | 50.00% | ||
Risk-free interest rate, minimum (as a percent) | 0.44% | ||
Risk-free interest rate, maximum (as a percent) | 0.88% | ||
Average estimated fair value (in dollars per share) | $ 131.24 | ||
Outstanding unvested shares granted | 251,276 | 238,266 | |
Grant date fair value per share (in dollars per share) | $ 141.88 | ||
Restricted stock | |||
Additional disclosures | |||
Restricted stock granted | 77,553 | 58,819 | |
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Options Issued in Period Fair Value | $ 12,529 | $ 10,199 | |
Outstanding unvested shares granted | 145,530 | 147,884 | |
Grant date fair value per share (in dollars per share) | $ 161.56 | ||
Restricted stock and restricted stock units | |||
Additional disclosures | |||
Unrecognized compensation cost for unvested restricted stock | $ 40,083 | ||
Weighted average period for recognition of unrecognized compensation cost | 3 years 10 months 24 days |
Related Party Arrangements (Det
Related Party Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Related Party Arrangements | |||
Management Fees Revenue | $ 1,524 | $ 2,611 | |
Compensation expense | 3,742 | 3,883 | |
Unconsolidated real estate entities | |||
Related Party Arrangements | |||
Outstanding receivables | 3,796 | $ 3,832 | |
Non Employee Director [Member] | Restricted stock and deferred stock awards | |||
Related Party Arrangements | |||
Compensation expense | 341 | $ 271 | |
Amount of deferred compensation | $ 195 | $ 488 |
Fair Value (Details)
Fair Value (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)derivative | Mar. 31, 2015USD ($) | ||
Derivative instruments and Hedging Activities | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ (1,374) | $ (1,595) | |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | 1,374 | $ 1,565 | |
Estimated hedging losses to be reclassified from accumulated other comprehensive loss into earnings within the next twelve months | $ 5,493 | ||
Cash Flow Hedges | |||
Derivative instruments and Hedging Activities | |||
Weighted average interest rate (as a percent) | [1] | 2.70% | |
Number of derivative instruments held | derivative | 16 | ||
Interest Rate Cap [Member] | Cash Flow Hedges | |||
Derivative instruments and Hedging Activities | |||
Notional amount | $ 36,525 | ||
Weighted average capped interest rate (as a percent) | 5.90% | ||
Interest Rate Swap [Member] | Cash Flow Hedges | |||
Derivative instruments and Hedging Activities | |||
Notional amount | $ 1,050,000 | ||
Weighted average capped interest rate (as a percent) | 2.30% | ||
Notional amounts entered into during period | $ 450,000 | ||
Not Designated as Hedging Instrument [Member] | |||
Derivative instruments and Hedging Activities | |||
Number of derivative instruments held | derivative | 15 | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | |||
Derivative instruments and Hedging Activities | |||
Notional amount | $ 724,700 | ||
Weighted average interest rate (as a percent) | [1] | 1.90% | |
Weighted average capped interest rate (as a percent) | 5.80% | ||
[1] | (1)For interest rate caps, represents the weighted average interest rate on the hedged debt. |
Fair Value (Details 2)
Fair Value (Details 2) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Financial Instruments Measured/Discussed at Fair Value | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | $ (47,757) | $ (30) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (1,374) | (1,595) | |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | 1,374 | $ 1,565 | |
Recurring basis | Fair Value, Inputs, Level 1 [Member] | |||
Financial Instruments Measured/Discussed at Fair Value | |||
DownREIT units | (1,427) | $ (1,381) | |
Total | (3,719,413) | (3,669,798) | |
Recurring basis | Fair Value, Inputs, Level 2 [Member] | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Total | (2,800,230) | (2,694,888) | |
Recurring basis | Fair Value, Inputs, Level 3 [Member] | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Total | (8,265) | (8,181) | |
Recurring basis | Fair Value, Inputs, Level 3 [Member] | Puts | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Fair value of remaining outstanding Puts | (8,265) | (8,181) | |
Cash Flow Hedges | Interest Rate Swap [Member] | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Notional amounts entered into during period | 450,000 | ||
Cash Flow Hedges | Recurring basis | Fair Value, Inputs, Level 2 [Member] | Interest Rate Cap [Member] | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Derivative assets | 1 | 5 | |
Unsecured notes | Recurring basis | Fair Value, Inputs, Level 1 [Member] | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Indebtedness | (3,717,986) | (3,668,417) | |
Secured Debt and Variable Rate Unsecured Term Loan [Member] | Recurring basis | Fair Value, Inputs, Level 2 [Member] | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Indebtedness | (2,757,911) | (2,700,341) | |
Not Designated as Hedging Instrument [Member] | Recurring basis | Fair Value, Inputs, Level 2 [Member] | Interest Rate Cap [Member] | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Derivative assets | 64 | 26 | |
Estimate of Fair Value Measurement [Member] | Recurring basis | |||
Financial Instruments Measured/Discussed at Fair Value | |||
DownREIT units | (1,427) | (1,381) | |
Total | (6,527,908) | (6,372,867) | |
Estimate of Fair Value Measurement [Member] | Recurring basis | Puts | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Fair value of remaining outstanding Puts | (8,265) | (8,181) | |
Estimate of Fair Value Measurement [Member] | Cash Flow Hedges | Recurring basis | Interest Rate Cap [Member] | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Derivative assets | 1 | 5 | |
Estimate of Fair Value Measurement [Member] | Cash Flow Hedges | Recurring basis | Interest Rate Swap [Member] | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Derivative assets | (42,384) | 5,422 | |
Estimate of Fair Value Measurement [Member] | Unsecured notes | Recurring basis | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Indebtedness | (3,717,986) | 3,668,417 | |
Estimate of Fair Value Measurement [Member] | Secured Debt and Variable Rate Unsecured Term Loan [Member] | Recurring basis | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Indebtedness | (2,757,911) | (2,700,341) | |
Estimate of Fair Value Measurement [Member] | Not Designated as Hedging Instrument [Member] | Recurring basis | Interest Rate Cap [Member] | |||
Financial Instruments Measured/Discussed at Fair Value | |||
Derivative assets | $ 64 | $ 26 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | May. 03, 2016USD ($) | Apr. 30, 2016USD ($)land_parcelhome | Mar. 31, 2016USD ($)home |
Subsequent events | |||
Estimated number of apartment homes in communities to be developed | home | 9,745 | ||
Subsequent event | |||
Subsequent events | |||
Number Of Land Parcels Acquired | land_parcel | 2 | ||
Payments to Acquire Land | $ 28,725 | ||
Estimated number of apartment homes in communities to be developed | home | 633 | ||
Real Estate Investment Property, Projected Capital Cost To Develop Real Estate | $ 234,000 | ||
Cash Flow Hedges | Interest Rate Swap [Member] | |||
Subsequent events | |||
Notional amount | $ 1,050,000 | ||
Cash Flow Hedges | Interest Rate Swap [Member] | Subsequent event | |||
Subsequent events | |||
Notional amount | $ 150,000 | ||
Mortgage notes payable | Notes Payable Maturities 2046 [Member] [Domain] | Subsequent event | |||
Subsequent events | |||
Repayments of secured mortgages | $ 134,500 |