Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 138,208,815 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Real estate: | ||
Land and improvements | $ 4,226,043 | $ 4,237,318 |
Buildings and improvements | 15,733,783 | 15,708,666 |
Furniture, fixtures and equipment | 636,793 | 615,288 |
Gross operating real estate | 20,596,619 | 20,561,272 |
Less accumulated depreciation | (4,345,596) | (4,218,379) |
Net operating real estate | 16,251,023 | 16,342,893 |
Construction in progress, including land | 1,375,366 | 1,306,300 |
Land held for development | 136,771 | 68,364 |
Real estate assets held for sale, net | 121,387 | 0 |
Total real estate, net | 17,884,547 | 17,717,557 |
Cash and cash equivalents | 137,244 | 67,088 |
Cash in escrow | 134,163 | 134,818 |
Resident security deposits | 33,130 | 32,686 |
Investments in unconsolidated real estate entities | 164,344 | 163,475 |
Deferred development costs | 39,369 | 45,819 |
Prepaid expenses and other assets | 253,650 | 253,378 |
Total assets | 18,646,447 | 18,414,821 |
LIABILITIES AND EQUITY | ||
Unsecured notes, net | 6,150,633 | 5,852,764 |
Variable rate unsecured credit facility | 0 | 0 |
Mortgage notes payable, net | 1,448,822 | 1,476,706 |
Dividends payable | 203,166 | 196,094 |
Payables for construction | 83,209 | 85,377 |
Accrued expenses and other liabilities | 299,426 | 308,189 |
Accrued interest payable | 60,111 | 43,116 |
Resident security deposits | 58,760 | 58,473 |
Liabilities related to real estate assets held for sale | 1,244 | 0 |
Total liabilities | 8,305,371 | 8,020,719 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 5,952 | 6,056 |
Equity: | ||
Preferred stock, $0.01 par value; $25 liquidation preference; 50,000,000 shares authorized at March 31, 2018 and December 31, 2017; zero shares issued and outstanding at March 31, 2018 and December 31, 2017 | 0 | 0 |
Common stock, $0.01 par value; 280,000,000 shares authorized at March 31, 2018 and December 31, 2017; 138,208,280 and 138,094,154 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 1,382 | 1,381 |
Additional paid-in capital | 10,229,738 | 10,235,475 |
Accumulated earnings less dividends | 128,166 | 188,609 |
Accumulated other comprehensive loss | (24,162) | (37,419) |
Total equity | 10,335,124 | 10,388,046 |
Total liabilities and equity | $ 18,646,447 | $ 18,414,821 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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 (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 280,000,000 | 280,000,000 |
Common stock, shares issued (in shares) | 138,208,280 | 138,094,154 |
Common stock, shares outstanding (in shares) | 138,208,280 | 138,094,154 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Rental and other income | $ 559,906 | $ 521,126 |
Management, development and other fees | 886 | 1,200 |
Total revenue | 560,792 | 522,326 |
Expenses: | ||
Operating expenses, excluding property taxes | 132,024 | 123,044 |
Property taxes | 59,896 | 52,930 |
Interest expense, net | 55,113 | 49,295 |
Loss on extinguishment of debt, net | 397 | 0 |
Depreciation expense | 159,059 | 140,621 |
General and administrative expense | 13,664 | 13,206 |
Expensed acquisition, development and other pursuit costs, net of recoveries | 800 | 728 |
Casualty and impairment (gain) loss, net | 58 | (11,688) |
Total expenses | 420,895 | 391,512 |
Income before equity in income of unconsolidated real estate entities, gain (loss) on sale of communities and other real estate, and income taxes | 139,897 | 130,814 |
Equity in income of unconsolidated real estate entities | 1,740 | 16,672 |
Gain on sale of communities | 0 | 87,949 |
(Loss) gain on other real estate transactions | (47) | 366 |
Income before income taxes | 141,590 | 235,801 |
Income tax expense | 0 | 20 |
Net income | 141,590 | 235,781 |
Net loss attributable to noncontrolling interests | 53 | 94 |
Net income attributable to common stockholders | 141,643 | 235,875 |
Other comprehensive income: | ||
Gain on cash flow hedges | 11,501 | 145 |
Cash flow hedge losses reclassified to earnings | 1,756 | 1,752 |
Comprehensive income | $ 154,900 | $ 237,772 |
Earnings per common share - basic: | ||
Net income attributable to common stockholders (in dollars per share) | $ 1.03 | $ 1.72 |
Earnings per common share - diluted: | ||
Net income attributable to common stockholders (in dollars per share) | 1.03 | 1.72 |
Dividends per common share (in dollars per share) | $ 1.47 | $ 1.42 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 141,590 | $ 235,781 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation expense | 159,059 | 140,621 |
Amortization of deferred financing costs | 2,007 | 1,826 |
Amortization of debt discount (premium) | 419 | (4,621) |
Loss on extinguishment of debt, net | 397 | 0 |
Amortization of stock-based compensation | 4,029 | 4,319 |
Equity in loss of (income), and return on, unconsolidated real estate entities and noncontrolling interests, net of eliminations | 1,486 | (5,768) |
Casualty and impairment (gain) loss, net | (58) | 11,688 |
Abandonment of development pursuits | 112 | 265 |
Cash flow hedge losses reclassified to earnings | 1,756 | 1,752 |
Loss (gain) on sale of real estate assets | 47 | (97,012) |
Increase in resident security deposits, prepaid expenses and other assets | (6,608) | (10,630) |
Increase in accrued expenses, other liabilities and accrued interest payable | 11,677 | 21,674 |
Net cash provided by operating activities | 315,913 | 299,895 |
Cash flows from investing activities: | ||
Development/redevelopment of real estate assets including land acquisitions and deferred development costs | (301,299) | (259,573) |
Capital expenditures - existing real estate assets | (15,240) | (8,015) |
Capital expenditures - non-real estate assets | (1,735) | (2,429) |
Proceeds from sale of real estate, net of selling costs | 603 | 159,985 |
Insurance proceeds for property damage claims | 58 | 4,095 |
Mortgage note receivable lending | (2,006) | (4,795) |
Mortgage note receivable payment | 4,862 | 0 |
Decrease in payables for construction | (2,168) | (4,326) |
Distributions from unconsolidated real estate entities | 2,013 | 11,952 |
Investments in unconsolidated real estate entities | (4,368) | (5,774) |
Net cash used in investing activities | (319,280) | (108,880) |
Cash flows from financing activities: | ||
Issuance of common stock, net | 0 | 56,817 |
Dividends paid | (195,999) | (185,192) |
Repayments of mortgage notes payable, including prepayment penalties | (28,584) | (21,905) |
Issuance of unsecured notes | 299,442 | 0 |
Payment of deferred financing costs | (3,244) | (2,315) |
Payment of capital lease obligation | (267) | 0 |
Receipts for termination of forward interest rate swaps | 12,598 | 0 |
Payments related to tax withholding for share-based compensation | (10,483) | 0 |
Distributions to DownREIT partnership unitholders | (11) | (11) |
Contributions from joint venture and profit-sharing partners | 0 | 1,038 |
Distributions to joint venture and profit-sharing partners | (104) | (104) |
Preferred interest obligation redemption and dividends | (480) | (600) |
Net cash provided by (used in) financing activities | 72,868 | (152,272) |
Net increase in cash and cash equivalents | 69,501 | 38,743 |
Cash and cash equivalents and restricted cash, beginning of period | 201,906 | 329,977 |
Cash and cash equivalents and restricted cash, end of period | 271,407 | 368,720 |
Cash paid during the period for interest, net of amount capitalized | 33,936 | 34,503 |
Supplemental Cash Flow Information [Abstract] | ||
Cash, cash equivalents and restricted cash reported in the Consolidated Statements of Cash Flows | $ 201,906 | $ 329,977 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Supplemental disclosures of non-cash investing and financing activities | ||
Common stock issued through the dividend reinvestment plan (in shares) | 566 | 1,165 |
Common stock issued through the dividend reinvestment plan | $ 96 | $ 205 |
Number of shares withheld to satisfy employees' tax withholding and other liabilities (in shares) | 67,609 | 57,172 |
Shares withheld to satisfy employees' tax withholding and other liabilities, value | $ 10,483 | $ 10,149 |
Stock issued during period, shares, share-based compensation, forfeited (in shares) | 1,829 | |
Stock issued during period, value, share-based compensation, forfeited | $ 234 | 41 |
Dividends declared but not paid | 203,166 | 195,657 |
Change in redemption value of redeemable noncontrolling interest | (63) | |
Increase (decrease) in prepaid expense and other assets | 180 | |
Increase in accrued expenses, other liabilities and accrued interest payable | 102 | |
Cash flow hedge losses reclassified to earnings | 1,756 | 1,752 |
Net operating real estate | $ 16,251,023 | |
Avalon Maplewood | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Net operating real estate | 16,361 | |
Insurance Proceeds | $ 12,598 | |
Restricted Stock and Restricted Stock Converted From Performance Shares | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Equity instruments granted (in shares) | 182,998 | 198,502 |
Restricted Stock Converted From Performance Shares | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Equity instruments granted (in shares) | 88,297 | 128,482 |
Restricted stock | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Equity instruments granted (in shares) | 94,701 | 70,020 |
Fair value of shares issued | $ 15,277 | $ 12,538 |
Stock issued during period, shares, share-based compensation, forfeited (in shares) | 1,829 | 236 |
Accumulated earnings less dividends | ||
Supplemental disclosures of non-cash investing and financing activities | ||
Change in redemption value of redeemable noncontrolling interest | $ (63) | $ 183 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 , the Company owned or held a direct or indirect ownership interest in 270 operating apartment communities containing 78,388 apartment homes in 12 states and the District of Columbia, of which 15 communities containing 6,260 apartment homes were under redevelopment. In addition, the Company owned or held a direct or indirect ownership interest in 18 communities under development that are expected to contain an aggregate of 5,774 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 28 communities that, if developed as expected, will contain an estimated 9,268 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 2017 Annual Report on Form 10-K. The results of operations for the three months ended March 31, 2018 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 3/31/2018 3/31/2017 Basic and diluted shares outstanding Weighted average common shares - basic 137,764,468 137,068,874 Weighted average DownREIT units outstanding 7,500 7,500 Effect of dilutive securities 381,202 454,868 Weighted average common shares - diluted 138,153,170 137,531,242 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 141,643 $ 235,875 Net income allocated to unvested restricted shares (430 ) (652 ) Net income attributable to common stockholders, adjusted $ 141,213 $ 235,223 Weighted average common shares - basic 137,764,468 137,068,874 Earnings per common share - basic $ 1.03 $ 1.72 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 141,643 $ 235,875 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 11 11 Adjusted net income attributable to common stockholders $ 141,654 $ 235,886 Weighted average common shares - diluted 138,153,170 137,531,242 Earnings per common share - diluted $ 1.03 $ 1.72 Certain options to purchase shares of common stock in the amount of 6,995 were outstanding as of March 31, 2018 , but were not included in the computation of diluted earnings per share because such options were anti-dilutive for the period. All options to purchase shares of common stock outstanding as of March 31, 2017 are included in the computation of diluted earnings per share. 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. The Company does not present or disclose the fair value of Hedging Derivatives on a net basis. 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 cumulative changes in the fair value of Hedging Derivatives in other comprehensive loss. Amounts recorded in accumulated other comprehensive 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 Edgewater Casualty Loss In January 2015, a fire occurred at the Company's Avalon at Edgewater apartment community located in Edgewater, New Jersey ("Edgewater"). 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. In conjunction with legal matters associated with the Edgewater casualty loss, the Company has established protocols for processing claims from third parties who suffered losses as a result of the fire, and many third parties have contacted the Company's insurance carrier and settled their claims. See Part II, Item 1, "Legal Proceedings," for further discussion of the lawsuits associated with the Edgewater casualty loss. Three class action lawsuits have been filed against the Company on behalf of occupants of the destroyed building and consolidated in the United States District Court for the District of New Jersey. The Company has agreed with class counsel to the terms of a settlement which provides a claims process (with agreed upon protocols for instructing the adjuster as to how to evaluate claims) and, if needed, an arbitration process to determine damage amounts to be paid to individual claimants covered by the class settlement. In July 2017 the District Court granted final approval of the settlement and all claims have been submitted to the independent claims adjuster. A total of 66 units (consisting of residents who did not previously settle their claims and who did not opt out of the class settlement) are included in the class action settlement and bound by its terms. However, only 44 units submitted claims. The independent claims adjuster is currently reviewing the claims submitted; the submitted claims total approximately $6,900,000 but, based on the Company's review of the initial determinations made by the adjuster on a number of claims, the Company believes that the total amount actually awarded will be significantly less. To date, the claims adjuster has completed his evaluation of 17 of these claims and it is expected that the evaluation of the remaining claims should be completed within the next month. A fourth class action, being heard in the same federal court, was filed against the Company on behalf of residents of the second Edgewater building that suffered minimal damage. In addition to the class action lawsuits described above, 18 of the 19 lawsuits representing approximately 143 individual plaintiffs filed in the Superior Court of New Jersey Bergen County - Law Division were previously scheduled for trial on January 2, 2018. In advance of this date, the Company was able to resolve all of these claims in principle which included approximately 50 units. The Company previously resolved litigated claims with another 10 units. There is currently one remaining lawsuit which was recently filed in the Superior Court of New Jersey, Bergen County - Law Division on behalf of one apartment unit. The Company believes it has meritorious defenses to the extent of damages claimed in that suit. There are also seven subrogation lawsuits that have been filed against the Company by insurers of Edgewater residents who obtained renters insurance; it is the Company's position that in the majority of the applicable leases the residents waived subrogation rights. One of these lawsuits has been dismissed on that basis, one is pending in the Superior Court of New Jersey, Bergen County - Law Division, one has been amicably resolved in principle and the other four have been consolidated and are currently pending in the United States District Court for the District of New Jersey. The District Court denied the Company's motions seeking dismissal on this basis. The Company will reassess the viability of this defense after conducting additional discovery. Having settled many third party claims through the insurance claims process, the Company currently believes that any potential remaining liability to third parties (including any potential liability to third parties determined in accordance with the class settlement described above) will not be material to the Company and will in any event be substantially covered by the Company's insurance policies. However, the Company can give no assurances in this regard and continues to evaluate this matter. See Part II, Item 1, "Legal Proceedings," for further discussion of the casualty gains and losses and lawsuits associated with the Edgewater casualty loss. Other Matters 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 first requires that the Company determine if the real estate investment is the acquisition of an asset or a business combination. Under either model, the Company must identify and determine the fair value of any assets acquired, liabilities assumed and any noncontrolling interest in the acquiree. Typical assets acquired and liabilities assumed include land, building, furniture, fixtures and equipment, debt 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. Consideration for acquisitions is typically in the form of cash unless otherwise disclosed. For a business combination, the Company records the assets acquired and liabilities assumed based on the fair value of each respective item. For an asset acquisition, the allocation of the purchase price is based on the relative fair value of the net assets. The Company expenses all applicable acquisition costs for a business combination and capitalizes all applicable acquisition costs for an asset acquisition. The Company expects that acquisitions of individual operating communities will generally be viewed as asset acquisitions. 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' notes to financial statements to conform to current year presentations as a result of changes in held for sale classification and disposition activity. Revenue and Gain Recognition As of January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective approach, which applies the new standard to contracts that are not completed as of the date of adoption. Under the new standard, revenue is recognized in accordance with the transfer of goods and services to customers at an amount that reflects the consideration the Company expects to be entitled for those goods and services. The majority of the Company’s revenue is derived from residential and retail rental income and other lease income, which are scoped out from this standard and included in the current lease accounting framework, and will be accounted for under ASU 2016-02, Leases, discussed under Recently Issued Accounting Standards below. Revenue streams that are scoped into ASU 2014-09 include: • Management fees - The Company has investment interests in real estate joint ventures, for which the Company may manage (i) the venture, (ii) the associated operating communities owned by the ventures and/or (iii) the development or redevelopment of those operating communities. For these activities, the Company receives asset management, property management, development and/or redevelopment fee revenue. The performance obligation is the management of the venture, community or other defined task such as the development or redevelopment of the community. While the individual activities that comprise the performance obligation of the management fees can vary day to day, the nature of the overall performance obligation to provide management service is the same and considered by the Company to be a series of services that have the same pattern of transfer to the customer and the same method to measure progress toward satisfaction of the performance obligation. The Company recognizes revenue for fees as earned on a monthly basis and has concluded this is appropriate under the new standard. • Rental and non-rental related income - The Company recognizes revenue for new rental related income not included as components of a lease, such as reservation and application fees, as well as for non-rental related income, as earned, and has concluded this is appropriate under the new standard. • Gains or losses on sales of real estate - The Company accounts for the sale of real estate assets and any related gain recognition in accordance with the accounting guidance applicable to sales of real estate, which establishes standards for recognition of profit on all real estate sales transactions, other than retail land sales. The Company recognizes the sale, and associated gain or loss from the disposition, provided that the earnings process is complete and the Company does not have significant continuing involvement. Subsequent to the adoption of the new standard, a gain or loss is recognized when the criteria for an asset to be derecognized are met, which include when (i) a contract exists and (ii) the buyer obtained control of the nonfinancial asset that was sold. As a result, the Company may recognize a gain on a real estate disposition transaction that previously did not qualify as a sale or for full profit recognition due to the timing of the transfer of control or certain forms of continuing involvement. In addition, subsequent to the adoption of the new standard, a gain or loss recognized on the sale of a nonfinancial asset to an unconsolidated entity will be recognized at 100%, and not the Company’s proportionate ownership percentage. The Company concluded that the adoption of the new standard did not require an adjustment to the opening balance of retained earnings. The following table provides details of the Company’s revenue streams disaggregated by the Company’s reportable operating segments, further discussed in Note 7, “Segment Reporting,” for the three months ended March 31, 2018 and 2017 . Segment information for total revenue has been adjusted to exclude the real estate assets that were sold from January 1, 2017 through March 31, 2018 , or otherwise qualify as held for sale as of March 31, 2018 , as described in Note 6, "Real Estate Disposition Activities," (dollars in thousands): For the three months ended Established Other Development/ Non- Total For the period ended March 31, 2018 Management, development and other fees $ — $ — $ — $ 886 $ 886 Rental and non-rental related income (2) 2,399 1,817 405 — 4,621 Total non-lease revenue (3) 2,399 1,817 405 886 5,507 Lease income (4) 415,145 69,386 67,529 — 552,060 Total revenue $ 417,544 $ 71,203 $ 67,934 $ 886 $ 557,567 For the period ended March 31, 2017 Management, development and other fees $ — $ — $ — $ 1,200 $ 1,200 Rental and non-rental related income (2) 2,224 1,687 405 — 4,316 Total non-lease revenue (3) 2,224 1,687 405 1,200 5,516 Lease income (4) 380,533 68,429 55,142 — 504,104 Total revenue $ 382,757 $ 70,116 $ 55,547 $ 1,200 509,620 __________________________________ (1) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. (2) Amounts include revenue streams related to leasing activities that are not considered components of a lease, including but not limited to, apartment hold fees and application fees, as well as revenue streams not related to leasing activities, including but not limited to, vendor revenue sharing, building advertising, vending and dry cleaning revenue. (3) Represents all revenue accounted for under ASC 2014-09. (4) Amounts include all revenue streams derived from residential and retail rental income and other lease income, which are scoped out from ASC 2014-09 and accounted for under the lease accounting framework. Due to the nature and timing of the Company’s identified revenue streams, there are no material amounts of outstanding or unsatisfied performance obligations as of March 31, 2018 . Recently Issued Accounting Standards In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU expands hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. This update also simplifies the application of hedge accounting guidance and eases the administrative burden of hedge documentation requirements and assessing hedge effectiveness. The Company adopted the guidance as of January 1, 2018 and it did not have a material effect on the Company’s financial position or results of operations. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This ASU (i) clarifies the scope of the nonfinancial asset guidance and the derecognition of certain businesses and nonprofit activities, (ii) eliminates the exception in the financial asset guidance for transfers of investments (including equity method investments) in real estate entities and supersedes the guidance in the Exchanges of a Nonfinancial Asset for a Noncontrolling Ownership Interest and (iii) provides guidance on the accounting of partial sales of nonfinancial assets and contributions of nonfinancial assets to a joint venture or other noncontrolled investee. The new standard allows for either a retrospective or modified retrospective approach. The Company adopted the new standard as of January 1, 2018 using the modified retrospective approach, applying the provisions to open contracts as of the date of adoption. See "Revenue and Gain Recognition" above for additional discussion of the impact of adopting the guidance. In February 2016, the FASB issued ASU 2016-02, Leases, amending the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The guidance will be effective in the first quarter of 2019 and allows for early adoption. The new standard requires a modified retrospective transition approach for all leases existing at the date of initial application, with an option to use certain transition relief. ASU 2016-02 provides for transition relief, which includes not electing to (i) reassess whether any expired or existing contract is a lease or contains a lease, (ii) reassess the lease classification of any expired or existing leases and (iii) expense any capitalized initial direct costs for any existing leases. Subsequently, the FASB issued ASU 2018-01 which provides further transition relief by including an option to not evaluate land easements that exist or have expired prior to the date of adoption under ASC 842. The Company anticipates adoption of the standard to have a material impact on its financial position resulting from the recognition of the right to use asset and corresponding lease obligation for its long-term ground leases, currently accounted for as operating leases. The Company will continue to assess the impact of the new standard. Change in Accounting Principle As of October 1, 2017, the Company adopted ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The guidance requires statements of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents, and was adopted retrospectively. The prior period amounts that have been impacted by the new guidance and retrospectively adjusted include (i) an increase in cash in operating escrows (cash provided by operating activities), (ii) an increase in cash in deposit escrows (cash provided by investing activities) and (iii) repayments of mortgage notes payable, including prepayment penalties (cash used in financing activities), located on the Consolidated Statements of Cash Flows. The following tables present the impact of the change in accounting principle to the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2017 (dollars in thousands): 3/31/2017 (as previously reported) Impact of ASU 2016-18 3/31/2017 (as adjusted and currently reported) Net cash provided by operating activities $ 293,462 $ 6,433 $ 299,895 Net cash used in investing activities (235,347 ) 126,467 (108,880 ) Net cash used in financing activities (151,404 ) (868 ) (152,272 ) Net (decrease) increase in cash, cash equivalents (93,289 ) 93,289 — Net increase in cash, cash equivalents and restricted cash — 38,743 38,743 Cash, cash equivalents, beginning of period 214,994 (214,994 ) — Cash, cash equivalents and restricted cash, beginning of period — 329,977 329,977 Cash, cash equivalents, end of period $ 121,705 — — Cash, cash equivalents and restricted cash, end of period $ 247,015 $ 368,720 |
Interest Capitalized
Interest Capitalized | 3 Months Ended |
Mar. 31, 2018 | |
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 $13,164,000 and $17,821,000 for the three months ended March 31, 2018 and 2017 , respectively. |
Mortgage Notes Payable, Unsecur
Mortgage Notes Payable, Unsecured Notes and Credit Facility | 3 Months Ended |
Mar. 31, 2018 | |
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, variable rate unsecured term loans ("Term Loans") and Credit Facility, as defined below, as of March 31, 2018 and December 31, 2017 are summarized below. 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, 2018 and December 31, 2017 , as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, "Real Estate Disposition Activities"). 3/31/2018 12/31/2017 Fixed rate unsecured notes (1) $ 5,650,000 $ 5,350,000 Variable rate unsecured notes (1) 300,000 300,000 Term Loans (1) 250,000 250,000 Fixed rate mortgage notes payable - conventional and tax-exempt (2) 566,091 593,987 Variable rate mortgage notes payable - conventional and tax-exempt (2) 909,788 910,326 Total mortgage notes payable, unsecured notes and Term Loans 7,675,879 7,404,313 Credit Facility — — Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility $ 7,675,879 $ 7,404,313 _____________________________________ (1) Balances at March 31, 2018 and December 31, 2017 exclude $11,039 and $10,850 , respectively, of debt discount, and $38,328 and $36,386 , respectively, of deferred financing costs, as reflected in unsecured notes, net on the accompanying Condensed Consolidated Balance Sheets. (2) Balances at March 31, 2018 and December 31, 2017 exclude $16,328 and $16,351 , respectively, of debt discount, and $10,729 and $11,256 , respectively, of deferred financing costs, as reflected in mortgage notes payable on the accompanying Condensed Consolidated Balance Sheets. The following debt activity occurred during the three months ended March 31, 2018 : • In February 2018, the Company repaid $15,174,000 of fixed rate debt secured by Avalon Oaks West in advance of its scheduled maturity date, incurring a charge of $426,000 , consisting of a prepayment penalty of $152,000 and the non-cash write-off of unamortized deferred financing costs of $274,000 . • In February 2018, the Company repaid $11,038,000 of fixed rate debt secured by AVA Pasadena at par in advance of its scheduled maturity date. • In March 2018, the Company issued $300,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of approximately $296,210,000 . The notes mature in April 2048 and were issued at a 4.35% interest rate. The effective interest rate of the notes for the first 10 years is 3.97% , including the impact of an interest rate hedge and offering costs, and for the remainder of the term the effective interest rate will be 4.39% . At March 31, 2018 , the Company has a $1,500,000,000 revolving variable rate unsecured credit facility with a syndicate of banks (the "Credit Facility") which matures in April 2020. The Company may extend the maturity for up to nine months , provided the Company is not in default and upon payment of a $1,500,000 extension fee. 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 ( 2.71% at March 31, 2018 ), assuming a one month borrowing rate. The annual facility fee is 0.125% (or 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 $43,352,000 and $47,315,000 outstanding in letters of credit that reduced the borrowing capacity as of March 31, 2018 and December 31, 2017 , respectively. In the aggregate, secured notes payable mature at various dates from April 2018 through July 2066, and are secured by certain apartment communities (with a net carrying value of $2,252,748,000 , excluding communities classified as held for sale, as of March 31, 2018 ). As of March 31, 2018 , the Company has guaranteed a $100,000,000 secured note payable held by a wholly-owned subsidiary; such secured note payable is consolidated for financial reporting purposes. The weighted average interest rate of the Company's fixed rate secured notes payable (conventional and tax-exempt) was 3.9% and 4.0% at March 31, 2018 and December 31, 2017 , respectively. The weighted average interest rate of the Company's variable rate secured notes payable (conventional and tax-exempt) including the effect of certain financing related fees, was 3.3% and 3.2% at March 31, 2018 and December 31, 2017 , respectively. Scheduled payments and maturities of secured notes payable and unsecured notes outstanding at March 31, 2018 are as follows (dollars in thousands): Year Secured notes payments Secured notes maturities Unsecured notes maturities Stated interest rate of unsecured notes 2018 5,273 65,183 — N/A 2019 4,443 114,721 — N/A 2020 3,345 140,429 250,000 6.100 % 400,000 3.625 % 2021 3,259 27,844 250,000 3.950 % 300,000 LIBOR + 0.43% 2022 3,483 — 450,000 2.950 % 100,000 LIBOR + .90% 2023 3,713 — 350,000 4.200 % 250,000 2.850 % 2024 3,950 — 300,000 3.500 % 150,000 LIBOR + 1.50% 2025 4,202 84,835 525,000 3.450 % 300,000 3.500 % 2026 4,486 — 475,000 2.950 % 300,000 2.900 % 2027 4,048 185,100 400,000 3.350 % Thereafter 135,148 682,417 350,000 3.900 % 300,000 4.150 % 450,000 3.200 % 300,000 4.350 % $ 175,350 $ 1,300,529 $ 6,200,000 The Company was in compliance at March 31, 2018 with customary financial and other covenants under the Credit Facility, the Term Loans and the Company's fixed rate unsecured notes. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity The following summarizes the changes in equity for the three months ended March 31, 2018 (dollars in thousands): Common stock Additional paid-in capital Accumulated earnings less dividends Accumulated other comprehensive loss Total equity Balance at December 31, 2017 $ 1,381 $ 10,235,475 $ 188,609 $ (37,419 ) $ 10,388,046 Net income attributable to common stockholders — — 141,643 — 141,643 Gain on cash flow hedges, net — — — 11,501 11,501 Cash flow hedge losses reclassified to earnings — — — 1,756 1,756 Change in redemption value of redeemable noncontrolling interest — — (63 ) — (63 ) Dividends declared to common stockholders — — (203,166 ) — (203,166 ) Issuance of common stock, net of withholdings 1 (12,286 ) 1,143 — (11,142 ) Amortization of deferred compensation — 6,549 — — 6,549 Balance at March 31, 2018 $ 1,382 $ 10,229,738 $ 128,166 $ (24,162 ) $ 10,335,124 As of March 31, 2018 and December 31, 2017 , 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, 2018 , the Company: i. issued 566 common shares through the Company's dividend reinvestment plan; ii. issued 182,998 common shares in connection with restricted stock grants and the conversion of performance awards to restricted shares; iii. withheld 67,609 common shares to satisfy employees' tax withholding and other liabilities; and iv. canceled 1,829 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, 2018 is not reflected on the accompanying Condensed Consolidated Balance Sheet as of March 31, 2018 , 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 (and/or enter into forward sale agreements for the sale of) 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. The Company expects that, if entered into, 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. As of March 31, 2018 , there are no outstanding forward sales agreements. During the three months ended March 31, 2018 , the Company had no sales under the program. As of March 31, 2018 , the Company had $892,915,000 of shares remaining authorized for issuance under this program. |
Investments in Real Estate Enti
Investments in Real Estate Entities | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Real Estate Entities | Investments in Real Estate Entities Investments in Unconsolidated Real Estate Entities As of March 31, 2018 , 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 and joint ventures formed with Equity Residential as part of the Archstone acquisition. 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. The Company has an equity interest of 31.3% in AvalonBay Value Added Fund II, L.P. ("Fund II"), and upon achievement of a threshold return, the Company has a right to incentive distributions for its promoted interest based on the current returns earned by Fund II, which currently represents 40.0% of further Fund II distributions, which is in addition to its proportionate share of the remaining 60.0% of distributions. During 2017, Fund II sold its final apartment communities. During the three months ended March 31, 2018 , the Company recognized income of $925,000 for its promoted interest, which is reported as a component 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 discussed above as of the dates presented (dollars in thousands): 3/31/2018 12/31/2017 (unaudited) (unaudited) Assets: Real estate, net $ 689,612 $ 695,077 Other assets 38,084 39,976 Total assets $ 727,696 $ 735,053 Liabilities and partners' capital: Mortgage notes payable, net and credit facility $ 523,008 $ 523,815 Other liabilities 13,406 10,540 Partners' capital 191,282 200,698 Total liabilities and partners' capital $ 727,696 $ 735,053 The following is a combined summary of the operating results of the entities accounted for using the equity method discussed above for the periods presented (dollars in thousands): For the three months ended 3/31/2018 3/31/2017 (unaudited) Rental and other income $ 21,801 $ 28,642 Operating and other expenses (8,305 ) (11,094 ) Gain on sale of communities — 29,447 Interest expense, net (5,618 ) (6,948 ) Depreciation expense (5,880 ) (7,327 ) Net income $ 1,998 $ 32,720 In conjunction with the formation of North Point II JV, LP ("AVA North Point") and the acquisition of Archstone Multifamily Partners AC LP (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 $35,052,000 and $35,402,000 at March 31, 2018 and December 31, 2017 , respectively, of the Company's respective investment balances. These amounts are being amortized over the lives of the underlying assets as a component of equity in income of unconsolidated real estate entities on the accompanying Condensed Consolidated Statements of Comprehensive Income. In conjunction with the development of Avalon Brooklyn Bay, the Company entered into a joint venture agreement to construct a mixed-use building that contains rental apartments, for-sale residential condominium units and related common elements. The Company owns a 70.0% interest in the venture, which represents a 100% interest in the rental apartments, and the venture partner owns the remaining 30.0% interest, which represents a 100% interest in the for-sale residential condominium units. The Company is responsible for the development and construction of the structure, and provided a loan to the venture partner for the venture partner's share of costs. The development of Avalon Brooklyn Bay was completed during the three months ended March 31, 2018 . As of March 31, 2018 , the Company has a receivable from the venture partner in the form of a variable rate mortgage note, secured by the for-sale residential condominium units, in the amount of $41,976,000 for outstanding principal and interest, net of repayments, reported as a component of prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets. The Company recognizes interest income on the accrual basis. Beginning in 2018, the mortgage note is being repaid by the venture partner with the proceeds the venture partner receives from the sales of the residential condominium units. The venture is considered a VIE, and the Company consolidates its interest in the rental apartments and common areas. 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 expensed. The Company expensed costs related to the abandonment of Development Rights, as well as costs incurred in pursuing the acquisition or disposition of assets for which such acquisition and disposition activity did not occur, in the amounts of $800,000 and $728,000 for the three months ended March 31, 2018 and 2017 , 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, 2018 and 2017 , the Company did not recognize any impairment losses for wholly-owned operating real estate assets, and did not record any impairment losses other than those related to the impairment on land held for investment and casualty gains and losses from property damage, as discussed below. 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, 2017 , the Company recognized an impairment charge of $9,350,000 relating to a land parcel which the Company had acquired for development in 2004 and sold during 2017. This charge was determined as the excess of the Company's carrying basis over the expected sale price for the parcel, and is included in casualty and impairment (gain) loss, net on the accompanying Condensed Consolidated Statements of Comprehensive Income. 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 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, 2018 and 2017 . Casualty Gains and Losses During the three months ended March 31, 2017 , the Company recorded a casualty loss of $19,481,000 composed of a charge of $16,361,000 to write-off the net book value of the fixed assets destroyed in the Maplewood casualty loss, and an accrual for demolition and additional incident expenses of $3,120,000 . The casualty loss was partially offset by $17,143,000 of property damage insurance proceeds, of which $4,545,000 was received during the three months ended March 31, 2017 . The net casualty loss of $2,338,000 for the three months ended March 31, 2017 is included in 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, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate Disposition Activities | Real Estate Disposition Activities At March 31, 2018 , the Company had two communities that qualified as held for sale. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2018 | |
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 loss (gain), net, gain on sale of communities, loss (gain) on other real estate transactions 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, 2018 and 2017 is as follows (dollars in thousands): For the three months ended 3/31/2018 3/31/2017 Net income $ 141,590 $ 235,781 Indirect operating expenses, net of corporate income 18,082 16,297 Investments and investment management expense 1,643 1,321 Expensed acquisition, development and other pursuit costs, net of recoveries 800 728 Interest expense, net 55,113 49,295 Loss on extinguishment of debt, net 397 — General and administrative expense 13,664 13,206 Equity in income of unconsolidated real estate entities (1,740 ) (16,672 ) Depreciation expense 159,059 140,621 Income tax expense — 20 Casualty and impairment loss (gain), net (58 ) 11,688 Gain on sale of communities — (87,949 ) Loss (gain) on other real estate transactions 47 (366 ) Net operating income from real estate assets sold or held for sale (2,144 ) (8,101 ) Net operating income $ 386,453 $ 355,869 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 3/31/2018 3/31/2017 Rental income from real estate assets sold or held for sale $ 3,225 $ 12,706 Operating expenses from real estate assets sold or held for sale (1,081 ) (4,605 ) Net operating income from real estate assets sold or held for sale $ 2,144 $ 8,101 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 total revenue and NOI for the three months ended March 31, 2018 and 2017 has been adjusted to exclude the real estate assets that were sold from January 1, 2017 through March 31, 2018 , or otherwise qualify as held for sale as of March 31, 2018 , as described in Note 6, "Real Estate Disposition Activities." Segment information for gross real estate as of March 31, 2018 and 2017 has not been adjusted to exclude real estate assets that were sold or otherwise qualified as held for sale subsequent to the respective balance sheet dates. For the three months ended Total NOI % NOI change from prior year Gross real estate (1) For the period ended March 31, 2018 Established New England $ 57,909 $ 37,643 1.8 % $ 1,973,203 Metro NY/NJ 104,096 71,921 0.9 % 3,722,387 Mid-Atlantic 59,159 41,067 0.2 % 2,233,711 Pacific Northwest 21,242 14,838 (0.6 )% 725,487 Northern California 92,197 70,494 1.8 % 3,017,863 Southern California 82,941 59,394 1.9 % 2,842,685 Total Established 417,544 295,357 1.2 % 14,515,336 Other Stabilized 71,203 47,265 N/A 3,036,815 Development / Redevelopment 67,934 43,831 N/A 4,321,466 Land Held for Development N/A N/A N/A 136,771 Non-allocated (2) 886 N/A N/A 98,368 Total $ 557,567 $ 386,453 8.6 % $ 22,108,756 For the period ended March 31, 2017 Established New England $ 56,154 $ 36,180 1.0 % $ 1,875,024 Metro NY/NJ 85,760 58,938 2.9 % 2,903,317 Mid-Atlantic 55,755 39,147 3.7 % 2,062,311 Pacific Northwest 20,454 14,815 5.2 % 731,537 Northern California 83,323 63,717 2.0 % 2,815,589 Southern California 81,311 59,223 5.0 % 3,005,810 Total Established 382,757 272,020 3.1 % 13,393,588 Other Stabilized 70,116 48,943 N/A 3,032,689 Development / Redevelopment 55,547 34,906 N/A 4,276,266 Land Held for Development N/A N/A N/A 103,954 Non-allocated (2) 1,200 N/A N/A 112,987 Total $ 509,620 $ 355,869 3.4 % $ 20,919,484 __________________________________ (1) Does not include gross real estate assets held for sale of $153,151 as of March 31, 2018 . (2) 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, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans As part of its long term compensation plans, the Company has granted stock options, performance awards and restricted stock. Detail of the outstanding awards and activity is presented below. Information with respect to stock options granted under the Company's 1994 Stock Option and Incentive Plan (the "1994 Plan") and its Second Amended and Restated 2009 Equity Incentive Plan (the "2009 Plan") for the three months ended March 31, 2018 , 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, 2017 149,973 $ 126.77 7,778 $ 48.60 Exercised — — — — Granted (1) 6,995 161.10 — — Forfeited — — — — Options Outstanding, March 31, 2018 156,968 $ 128.30 7,778 $ 48.60 Options Exercisable, March 31, 2018 149,973 $ 126.77 7,778 $ 48.60 __________________________________ (1) Options granted during the three months ended March 31, 2018 , are a result of recipient elections to receive a portion of earned performance awards and time-vesting restricted stock in the form of stock options. Information with respect to performance awards granted is as follows: Performance awards Weighted average grant date fair value per award Outstanding at December 31, 2017 251,770 $ 155.25 Granted (1) 100,501 155.31 Change in awards based on performance (2) 5,990 148.79 Converted to restricted stock or options (88,477 ) 148.79 Forfeited (1,271 ) 157.06 Outstanding at March 31, 2018 268,513 $ 157.25 __________________________________ (1) The amount of restricted stock that ultimately may be earned is based on the total shareholder return metrics related to the Company's common stock for 61,746 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 38,755 performance awards. (2) Represents the change in the number of performance awards earned based on actual performance achievement for the performance period. The Company used a Monte Carlo model to assess the compensation cost associated with the portion of the performance awards granted in 2018 for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows: 2018 Dividend yield 3.7% Estimated volatility over the life of the plan (1) 11.8% - 18.7% Risk free rate 1.86% - 2.46% Estimated performance award value based on total shareholder return measure $151.67 __________________________________ (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 granted in 2018 for which achievement will be determined by using financial metrics, the compensation cost was based on the grant date fair value of $161.10 , 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, 2017 133,633 $ 172.33 233,928 Granted - restricted stock shares 94,701 161.32 88,297 Vested - restricted stock shares (64,224 ) 171.20 (112,076 ) Forfeited (1,257 ) 168.68 (572 ) Outstanding at March 31, 2018 162,853 $ 166.40 209,577 Total employee stock-based compensation cost recognized in income was $3,846,000 and $3,986,000 for the three months ended March 31, 2018 and 2017 , respectively, and total capitalized stock-based compensation cost was $2,086,000 and $2,078,000 for the three months ended March 31, 2018 and 2017 , respectively. At March 31, 2018 , there was a total unrecognized compensation cost of $50,913,000 for unvested restricted stock and performance awards and $69,000 for unvested stock options, which does not include forfeitures, and is expected to be recognized over a weighted average period of 3.1 years and 0.4 years, respectively. |
Related Party Arrangements
Related Party Arrangements | 3 Months Ended |
Mar. 31, 2018 | |
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 $886,000 and $1,200,000 during the three months ended March 31, 2018 and 2017 , respectively. In addition, the Company has outstanding receivables associated with its property and construction management role of $4,265,000 and $2,449,000 as of March 31, 2018 and December 31, 2017 , respectively. Director Compensation The Company recorded non-employee director compensation expense relating to restricted stock grants and deferred stock awards in the amount of $389,000 and $371,000 in the three months ended March 31, 2018 and 2017 , 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 $189,000 and $525,000 on March 31, 2018 and December 31, 2017 , respectively, reported as a component of prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Financial Instruments Carried at Fair Value Derivative Financial Instruments 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, 2018 , 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. The following table summarizes the consolidated derivative positions at March 31, 2018 (dollars in thousands): Non-designated Hedges Interest Rate Caps Cash Flow Hedges Interest Rate Caps Notional balance $ 688,044 $ 34,820 Weighted average interest rate (1) 3.2 % 3.5 % Weighted average swapped/capped interest rate 6.5 % 5.9 % Earliest maturity date Aug 2018 Apr 2019 Latest maturity date Sep 2022 Apr 2019 ____________________________________ (1) For interest rate caps, represents the weighted average interest rate on the hedged debt. During the three months ended March 31, 2018 , in conjunction with the Company's March 2018 unsecured note issuance, the Company settled $300,000,000 of forward interest rate swap agreements designated as cash flow hedges of the interest rate variability on the forecasted issuance of the unsecured notes, receiving a payment of $12,598,000 . The Company has deferred the effective portion of the fair value change of these swaps in accumulated other comprehensive loss on the accompanying Condensed Consolidated Balance Sheets, and will recognize the impact as a component of interest expense, net, over the next 10 years. As of March 31, 2018 , the Company has no outstanding forward interest rate swap agreements. Excluding derivatives executed to hedge secured debt on communities classified as held for sale, the Company had one derivative designated as a cash flow hedge and 14 derivatives not designated as hedges at March 31, 2018 . Fair value changes for derivatives not in qualifying hedge relationships for the three months ended March 31, 2018 and 2017 were not material. During the three months ended March 31, 2018 , the Company deferred $11,501,000 of gains for cash flow hedges reported as a component of accumulated other comprehensive loss. The following table summarizes the deferred losses reclassified from accumulated other comprehensive loss as a component of interest expense, net (dollars in thousands): For the three months ended 3/31/2018 3/31/2017 Cash flow hedge losses reclassified to earnings $ 1,756 $ 1,752 The Company anticipates reclassifying approximately $5,752,000 of net 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. The Company did not have any derivatives designated as fair value hedges as of March 31, 2018 and 2017 . 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 and other receivables and prepaid expenses, 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 Loans 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 Loans 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): 3/31/2018 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Non-Designated Hedges Interest Rate Caps $ 18 $ — $ 18 $ — Puts (3,245 ) — — (3,245 ) DownREIT units (1,234 ) (1,234 ) — — Indebtedness Unsecured notes (5,585,598 ) (5,585,598 ) — — Secured notes payable and variable rate unsecured indebtedness (1,817,732 ) — (1,817,732 ) — Total $ (7,407,791 ) $ (5,586,832 ) $ (1,817,714 ) $ (3,245 ) 12/31/2017 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Non-Designated Hedges Interest Rate Caps $ 2 $ — $ 2 $ — Cash Flow Hedges Interest Rate Swaps - Assets 2,270 — 2,270 — Interest Rate Swaps - Liabilities (1,171 ) — (1,171 ) — Puts (3,245 ) — — (3,245 ) DownREIT units (1,338 ) (1,338 ) — — Indebtedness Unsecured notes (5,446,604 ) (5,446,604 ) — — Secured notes payable and variable rate unsecured indebtedness (1,849,851 ) — (1,849,851 ) — Total $ (7,299,937 ) $ (5,447,942 ) $ (1,848,750 ) $ (3,245 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
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. In April 2018, the Company: • repaid $13,380,000 of 3.06% fixed rate debt secured by Avalon Andover at par at its maturity date; and • entered into an agreement to sell two operating communities containing an aggregate of 472 apartment homes and net real estate of $72,081,000 as of March 31, 2018, resulting in the communities qualifying as held for sale. The Company expects to complete the sales in the second quarter of 2018. |
Organization, Basis of Presen18
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 , the Company owned or held a direct or indirect ownership interest in 270 operating apartment communities containing 78,388 apartment homes in 12 states and the District of Columbia, of which 15 communities containing 6,260 apartment homes were under redevelopment. In addition, the Company owned or held a direct or indirect ownership interest in 18 communities under development that are expected to contain an aggregate of 5,774 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 28 communities that, if developed as expected, will contain an estimated 9,268 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 2017 Annual Report on Form 10-K. The results of operations for the three months ended March 31, 2018 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. The Company's earnings per common share are determined as follows (dollars in thousands, except per share data): For the three months ended 3/31/2018 3/31/2017 Basic and diluted shares outstanding Weighted average common shares - basic 137,764,468 137,068,874 Weighted average DownREIT units outstanding 7,500 7,500 Effect of dilutive securities 381,202 454,868 Weighted average common shares - diluted 138,153,170 137,531,242 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 141,643 $ 235,875 Net income allocated to unvested restricted shares (430 ) (652 ) Net income attributable to common stockholders, adjusted $ 141,213 $ 235,223 Weighted average common shares - basic 137,764,468 137,068,874 Earnings per common share - basic $ 1.03 $ 1.72 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 141,643 $ 235,875 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 11 11 Adjusted net income attributable to common stockholders $ 141,654 $ 235,886 Weighted average common shares - diluted 138,153,170 137,531,242 Earnings per common share - diluted $ 1.03 $ 1.72 Certain options to purchase shares of common stock in the amount of 6,995 were outstanding as of March 31, 2018 , but were not included in the computation of diluted earnings per share because such options were anti-dilutive for the period. All options to purchase shares of common stock outstanding as of March 31, 2017 are included in the computation of diluted earnings per share. |
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. The Company does not present or disclose the fair value of Hedging Derivatives on a net basis. 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 cumulative changes in the fair value of Hedging Derivatives in other comprehensive loss. Amounts recorded in accumulated other comprehensive 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 Edgewater Casualty Loss In January 2015, a fire occurred at the Company's Avalon at Edgewater apartment community located in Edgewater, New Jersey ("Edgewater"). 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. In conjunction with legal matters associated with the Edgewater casualty loss, the Company has established protocols for processing claims from third parties who suffered losses as a result of the fire, and many third parties have contacted the Company's insurance carrier and settled their claims. See Part II, Item 1, "Legal Proceedings," for further discussion of the lawsuits associated with the Edgewater casualty loss. Three class action lawsuits have been filed against the Company on behalf of occupants of the destroyed building and consolidated in the United States District Court for the District of New Jersey. The Company has agreed with class counsel to the terms of a settlement which provides a claims process (with agreed upon protocols for instructing the adjuster as to how to evaluate claims) and, if needed, an arbitration process to determine damage amounts to be paid to individual claimants covered by the class settlement. In July 2017 the District Court granted final approval of the settlement and all claims have been submitted to the independent claims adjuster. A total of 66 units (consisting of residents who did not previously settle their claims and who did not opt out of the class settlement) are included in the class action settlement and bound by its terms. However, only 44 units submitted claims. The independent claims adjuster is currently reviewing the claims submitted; the submitted claims total approximately $6,900,000 but, based on the Company's review of the initial determinations made by the adjuster on a number of claims, the Company believes that the total amount actually awarded will be significantly less. To date, the claims adjuster has completed his evaluation of 17 of these claims and it is expected that the evaluation of the remaining claims should be completed within the next month. A fourth class action, being heard in the same federal court, was filed against the Company on behalf of residents of the second Edgewater building that suffered minimal damage. In addition to the class action lawsuits described above, 18 of the 19 lawsuits representing approximately 143 individual plaintiffs filed in the Superior Court of New Jersey Bergen County - Law Division were previously scheduled for trial on January 2, 2018. In advance of this date, the Company was able to resolve all of these claims in principle which included approximately 50 units. The Company previously resolved litigated claims with another 10 units. There is currently one remaining lawsuit which was recently filed in the Superior Court of New Jersey, Bergen County - Law Division on behalf of one apartment unit. The Company believes it has meritorious defenses to the extent of damages claimed in that suit. There are also seven subrogation lawsuits that have been filed against the Company by insurers of Edgewater residents who obtained renters insurance; it is the Company's position that in the majority of the applicable leases the residents waived subrogation rights. One of these lawsuits has been dismissed on that basis, one is pending in the Superior Court of New Jersey, Bergen County - Law Division, one has been amicably resolved in principle and the other four have been consolidated and are currently pending in the United States District Court for the District of New Jersey. The District Court denied the Company's motions seeking dismissal on this basis. The Company will reassess the viability of this defense after conducting additional discovery. Having settled many third party claims through the insurance claims process, the Company currently believes that any potential remaining liability to third parties (including any potential liability to third parties determined in accordance with the class settlement described above) will not be material to the Company and will in any event be substantially covered by the Company's insurance policies. However, the Company can give no assurances in this regard and continues to evaluate this matter. See Part II, Item 1, "Legal Proceedings," for further discussion of the casualty gains and losses and lawsuits associated with the Edgewater casualty loss. Other Matters 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. |
Real Estate, Policy | 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 first requires that the Company determine if the real estate investment is the acquisition of an asset or a business combination. Under either model, the Company must identify and determine the fair value of any assets acquired, liabilities assumed and any noncontrolling interest in the acquiree. Typical assets acquired and liabilities assumed include land, building, furniture, fixtures and equipment, debt 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. Consideration for acquisitions is typically in the form of cash unless otherwise disclosed. For a business combination, the Company records the assets acquired and liabilities assumed based on the fair value of each respective item. For an asset acquisition, the allocation of the purchase price is based on the relative fair value of the net assets. The Company expenses all applicable acquisition costs for a business combination and capitalizes all applicable acquisition costs for an asset acquisition. The Company expects that acquisitions of individual operating communities will generally be viewed as asset acquisitions. |
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' notes to financial statements to conform to current year presentations as a result of changes in held for sale classification and disposition activity. |
Recently Adopted Accounting Standards | Recently Issued Accounting Standards In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU expands hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. This update also simplifies the application of hedge accounting guidance and eases the administrative burden of hedge documentation requirements and assessing hedge effectiveness. The Company adopted the guidance as of January 1, 2018 and it did not have a material effect on the Company’s financial position or results of operations. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This ASU (i) clarifies the scope of the nonfinancial asset guidance and the derecognition of certain businesses and nonprofit activities, (ii) eliminates the exception in the financial asset guidance for transfers of investments (including equity method investments) in real estate entities and supersedes the guidance in the Exchanges of a Nonfinancial Asset for a Noncontrolling Ownership Interest and (iii) provides guidance on the accounting of partial sales of nonfinancial assets and contributions of nonfinancial assets to a joint venture or other noncontrolled investee. The new standard allows for either a retrospective or modified retrospective approach. The Company adopted the new standard as of January 1, 2018 using the modified retrospective approach, applying the provisions to open contracts as of the date of adoption. See "Revenue and Gain Recognition" above for additional discussion of the impact of adopting the guidance. In February 2016, the FASB issued ASU 2016-02, Leases, amending the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The guidance will be effective in the first quarter of 2019 and allows for early adoption. The new standard requires a modified retrospective transition approach for all leases existing at the date of initial application, with an option to use certain transition relief. ASU 2016-02 provides for transition relief, which includes not electing to (i) reassess whether any expired or existing contract is a lease or contains a lease, (ii) reassess the lease classification of any expired or existing leases and (iii) expense any capitalized initial direct costs for any existing leases. Subsequently, the FASB issued ASU 2018-01 which provides further transition relief by including an option to not evaluate land easements that exist or have expired prior to the date of adoption under ASC 842. The Company anticipates adoption of the standard to have a material impact on its financial position resulting from the recognition of the right to use asset and corresponding lease obligation for its long-term ground leases, currently accounted for as operating leases. The Company will continue to assess the impact of the new standard. Change in Accounting Principle As of October 1, 2017, the Company adopted ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The guidance requires statements of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents, and was adopted retrospectively. The prior period amounts that have been impacted by the new guidance and retrospectively adjusted include (i) an increase in cash in operating escrows (cash provided by operating activities), (ii) an increase in cash in deposit escrows (cash provided by investing activities) and (iii) repayments of mortgage notes payable, including prepayment penalties (cash used in financing activities), located on the Consolidated Statements of Cash Flows. The following tables present the impact of the change in accounting principle to the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2017 (dollars in thousands): 3/31/2017 (as previously reported) Impact of ASU 2016-18 3/31/2017 (as adjusted and currently reported) Net cash provided by operating activities $ 293,462 $ 6,433 $ 299,895 Net cash used in investing activities (235,347 ) 126,467 (108,880 ) Net cash used in financing activities (151,404 ) (868 ) (152,272 ) Net (decrease) increase in cash, cash equivalents (93,289 ) 93,289 — Net increase in cash, cash equivalents and restricted cash — 38,743 38,743 Cash, cash equivalents, beginning of period 214,994 (214,994 ) — Cash, cash equivalents and restricted cash, beginning of period — 329,977 329,977 Cash, cash equivalents, end of period $ 121,705 — — Cash, cash equivalents and restricted cash, end of period $ 247,015 $ 368,720 |
Organization, Basis of Presen19
Organization, Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 3/31/2018 3/31/2017 Basic and diluted shares outstanding Weighted average common shares - basic 137,764,468 137,068,874 Weighted average DownREIT units outstanding 7,500 7,500 Effect of dilutive securities 381,202 454,868 Weighted average common shares - diluted 138,153,170 137,531,242 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 141,643 $ 235,875 Net income allocated to unvested restricted shares (430 ) (652 ) Net income attributable to common stockholders, adjusted $ 141,213 $ 235,223 Weighted average common shares - basic 137,764,468 137,068,874 Earnings per common share - basic $ 1.03 $ 1.72 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 141,643 $ 235,875 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 11 11 Adjusted net income attributable to common stockholders $ 141,654 $ 235,886 Weighted average common shares - diluted 138,153,170 137,531,242 Earnings per common share - diluted $ 1.03 $ 1.72 |
Disaggregation of revenue | The following table provides details of the Company’s revenue streams disaggregated by the Company’s reportable operating segments, further discussed in Note 7, “Segment Reporting,” for the three months ended March 31, 2018 and 2017 . Segment information for total revenue has been adjusted to exclude the real estate assets that were sold from January 1, 2017 through March 31, 2018 , or otherwise qualify as held for sale as of March 31, 2018 , as described in Note 6, "Real Estate Disposition Activities," (dollars in thousands): For the three months ended Established Other Development/ Non- Total For the period ended March 31, 2018 Management, development and other fees $ — $ — $ — $ 886 $ 886 Rental and non-rental related income (2) 2,399 1,817 405 — 4,621 Total non-lease revenue (3) 2,399 1,817 405 886 5,507 Lease income (4) 415,145 69,386 67,529 — 552,060 Total revenue $ 417,544 $ 71,203 $ 67,934 $ 886 $ 557,567 For the period ended March 31, 2017 Management, development and other fees $ — $ — $ — $ 1,200 $ 1,200 Rental and non-rental related income (2) 2,224 1,687 405 — 4,316 Total non-lease revenue (3) 2,224 1,687 405 1,200 5,516 Lease income (4) 380,533 68,429 55,142 — 504,104 Total revenue $ 382,757 $ 70,116 $ 55,547 $ 1,200 509,620 __________________________________ (1) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. (2) Amounts include revenue streams related to leasing activities that are not considered components of a lease, including but not limited to, apartment hold fees and application fees, as well as revenue streams not related to leasing activities, including but not limited to, vendor revenue sharing, building advertising, vending and dry cleaning revenue. (3) Represents all revenue accounted for under ASC 2014-09. (4) Amounts include all revenue streams derived from residential and retail rental income and other lease income, which are scoped out from ASC 2014-09 and accounted for under the lease accounting framework. |
Schedule of new accounting pronouncements and changes in accounting principles | The following tables present the impact of the change in accounting principle to the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2017 (dollars in thousands): 3/31/2017 (as previously reported) Impact of ASU 2016-18 3/31/2017 (as adjusted and currently reported) Net cash provided by operating activities $ 293,462 $ 6,433 $ 299,895 Net cash used in investing activities (235,347 ) 126,467 (108,880 ) Net cash used in financing activities (151,404 ) (868 ) (152,272 ) Net (decrease) increase in cash, cash equivalents (93,289 ) 93,289 — Net increase in cash, cash equivalents and restricted cash — 38,743 38,743 Cash, cash equivalents, beginning of period 214,994 (214,994 ) — Cash, cash equivalents and restricted cash, beginning of period — 329,977 329,977 Cash, cash equivalents, end of period $ 121,705 — — Cash, cash equivalents and restricted cash, end of period $ 247,015 $ 368,720 |
Mortgage Notes Payable, Unsec20
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and December 31, 2017 , as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, "Real Estate Disposition Activities"). 3/31/2018 12/31/2017 Fixed rate unsecured notes (1) $ 5,650,000 $ 5,350,000 Variable rate unsecured notes (1) 300,000 300,000 Term Loans (1) 250,000 250,000 Fixed rate mortgage notes payable - conventional and tax-exempt (2) 566,091 593,987 Variable rate mortgage notes payable - conventional and tax-exempt (2) 909,788 910,326 Total mortgage notes payable, unsecured notes and Term Loans 7,675,879 7,404,313 Credit Facility — — Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility $ 7,675,879 $ 7,404,313 _____________________________________ (1) Balances at March 31, 2018 and December 31, 2017 exclude $11,039 and $10,850 , respectively, of debt discount, and $38,328 and $36,386 , respectively, of deferred financing costs, as reflected in unsecured notes, net on the accompanying Condensed Consolidated Balance Sheets. (2) Balances at March 31, 2018 and December 31, 2017 exclude $16,328 and $16,351 , respectively, of debt discount, and $10,729 and $11,256 , respectively, of deferred financing costs, as reflected in mortgage notes payable on the accompanying Condensed Consolidated Balance Sheets. |
Scheduled payments and maturities of mortgage notes payable and unsecured notes outstanding | Scheduled payments and maturities of secured notes payable and unsecured notes outstanding at March 31, 2018 are as follows (dollars in thousands): Year Secured notes payments Secured notes maturities Unsecured notes maturities Stated interest rate of unsecured notes 2018 5,273 65,183 — N/A 2019 4,443 114,721 — N/A 2020 3,345 140,429 250,000 6.100 % 400,000 3.625 % 2021 3,259 27,844 250,000 3.950 % 300,000 LIBOR + 0.43% 2022 3,483 — 450,000 2.950 % 100,000 LIBOR + .90% 2023 3,713 — 350,000 4.200 % 250,000 2.850 % 2024 3,950 — 300,000 3.500 % 150,000 LIBOR + 1.50% 2025 4,202 84,835 525,000 3.450 % 300,000 3.500 % 2026 4,486 — 475,000 2.950 % 300,000 2.900 % 2027 4,048 185,100 400,000 3.350 % Thereafter 135,148 682,417 350,000 3.900 % 300,000 4.150 % 450,000 3.200 % 300,000 4.350 % $ 175,350 $ 1,300,529 $ 6,200,000 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Summary of changes in equity | The following summarizes the changes in equity for the three months ended March 31, 2018 (dollars in thousands): Common stock Additional paid-in capital Accumulated earnings less dividends Accumulated other comprehensive loss Total equity Balance at December 31, 2017 $ 1,381 $ 10,235,475 $ 188,609 $ (37,419 ) $ 10,388,046 Net income attributable to common stockholders — — 141,643 — 141,643 Gain on cash flow hedges, net — — — 11,501 11,501 Cash flow hedge losses reclassified to earnings — — — 1,756 1,756 Change in redemption value of redeemable noncontrolling interest — — (63 ) — (63 ) Dividends declared to common stockholders — — (203,166 ) — (203,166 ) Issuance of common stock, net of withholdings 1 (12,286 ) 1,143 — (11,142 ) Amortization of deferred compensation — 6,549 — — 6,549 Balance at March 31, 2018 $ 1,382 $ 10,229,738 $ 128,166 $ (24,162 ) $ 10,335,124 |
Investments in Real Estate En22
Investments in Real Estate Entities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 discussed above as of the dates presented (dollars in thousands): 3/31/2018 12/31/2017 (unaudited) (unaudited) Assets: Real estate, net $ 689,612 $ 695,077 Other assets 38,084 39,976 Total assets $ 727,696 $ 735,053 Liabilities and partners' capital: Mortgage notes payable, net and credit facility $ 523,008 $ 523,815 Other liabilities 13,406 10,540 Partners' capital 191,282 200,698 Total liabilities and partners' capital $ 727,696 $ 735,053 |
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 discussed above for the periods presented (dollars in thousands): For the three months ended 3/31/2018 3/31/2017 (unaudited) Rental and other income $ 21,801 $ 28,642 Operating and other expenses (8,305 ) (11,094 ) Gain on sale of communities — 29,447 Interest expense, net (5,618 ) (6,948 ) Depreciation expense (5,880 ) (7,327 ) Net income $ 1,998 $ 32,720 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and 2017 is as follows (dollars in thousands): For the three months ended 3/31/2018 3/31/2017 Net income $ 141,590 $ 235,781 Indirect operating expenses, net of corporate income 18,082 16,297 Investments and investment management expense 1,643 1,321 Expensed acquisition, development and other pursuit costs, net of recoveries 800 728 Interest expense, net 55,113 49,295 Loss on extinguishment of debt, net 397 — General and administrative expense 13,664 13,206 Equity in income of unconsolidated real estate entities (1,740 ) (16,672 ) Depreciation expense 159,059 140,621 Income tax expense — 20 Casualty and impairment loss (gain), net (58 ) 11,688 Gain on sale of communities — (87,949 ) Loss (gain) on other real estate transactions 47 (366 ) Net operating income from real estate assets sold or held for sale (2,144 ) (8,101 ) Net operating income $ 386,453 $ 355,869 |
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 3/31/2018 3/31/2017 Rental income from real estate assets sold or held for sale $ 3,225 $ 12,706 Operating expenses from real estate assets sold or held for sale (1,081 ) (4,605 ) Net operating income from real estate assets sold or held for sale $ 2,144 $ 8,101 |
Schedule of details of segment information | For the three months ended Total NOI % NOI change from prior year Gross real estate (1) For the period ended March 31, 2018 Established New England $ 57,909 $ 37,643 1.8 % $ 1,973,203 Metro NY/NJ 104,096 71,921 0.9 % 3,722,387 Mid-Atlantic 59,159 41,067 0.2 % 2,233,711 Pacific Northwest 21,242 14,838 (0.6 )% 725,487 Northern California 92,197 70,494 1.8 % 3,017,863 Southern California 82,941 59,394 1.9 % 2,842,685 Total Established 417,544 295,357 1.2 % 14,515,336 Other Stabilized 71,203 47,265 N/A 3,036,815 Development / Redevelopment 67,934 43,831 N/A 4,321,466 Land Held for Development N/A N/A N/A 136,771 Non-allocated (2) 886 N/A N/A 98,368 Total $ 557,567 $ 386,453 8.6 % $ 22,108,756 For the period ended March 31, 2017 Established New England $ 56,154 $ 36,180 1.0 % $ 1,875,024 Metro NY/NJ 85,760 58,938 2.9 % 2,903,317 Mid-Atlantic 55,755 39,147 3.7 % 2,062,311 Pacific Northwest 20,454 14,815 5.2 % 731,537 Northern California 83,323 63,717 2.0 % 2,815,589 Southern California 81,311 59,223 5.0 % 3,005,810 Total Established 382,757 272,020 3.1 % 13,393,588 Other Stabilized 70,116 48,943 N/A 3,032,689 Development / Redevelopment 55,547 34,906 N/A 4,276,266 Land Held for Development N/A N/A N/A 103,954 Non-allocated (2) 1,200 N/A N/A 112,987 Total $ 509,620 $ 355,869 3.4 % $ 20,919,484 __________________________________ (1) Does not include gross real estate assets held for sale of $153,151 as of March 31, 2018 . (2) 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, 2018 | |
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 Second Amended and Restated 2009 Equity Incentive Plan (the "2009 Plan") for the three months ended March 31, 2018 , 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, 2017 149,973 $ 126.77 7,778 $ 48.60 Exercised — — — — Granted (1) 6,995 161.10 — — Forfeited — — — — Options Outstanding, March 31, 2018 156,968 $ 128.30 7,778 $ 48.60 Options Exercisable, March 31, 2018 149,973 $ 126.77 7,778 $ 48.60 __________________________________ (1) Options granted during the three months ended March 31, 2018 , are a result of recipient elections to receive a portion of earned performance awards and time-vesting restricted stock in the form of stock options. |
Schedule of nonvested performance awards granted | Information with respect to performance awards granted is as follows: Performance awards Weighted average grant date fair value per award Outstanding at December 31, 2017 251,770 $ 155.25 Granted (1) 100,501 155.31 Change in awards based on performance (2) 5,990 148.79 Converted to restricted stock or options (88,477 ) 148.79 Forfeited (1,271 ) 157.06 Outstanding at March 31, 2018 268,513 $ 157.25 __________________________________ (1) The amount of restricted stock that ultimately may be earned is based on the total shareholder return metrics related to the Company's common stock for 61,746 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 38,755 performance awards. (2) Represents the change in the number of performance awards earned based on actual performance achievement for the performance period. |
Summary of valuation options | The Company used a Monte Carlo model to assess the compensation cost associated with the portion of the performance awards granted in 2018 for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows: 2018 Dividend yield 3.7% Estimated volatility over the life of the plan (1) 11.8% - 18.7% Risk free rate 1.86% - 2.46% Estimated performance award value based on total shareholder return measure $151.67 __________________________________ (1) Estimated volatility over the life of the plan is using 50% historical volatility and 50% implied volatility. |
Schedule of restricted stock granted | 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, 2017 133,633 $ 172.33 233,928 Granted - restricted stock shares 94,701 161.32 88,297 Vested - restricted stock shares (64,224 ) 171.20 (112,076 ) Forfeited (1,257 ) 168.68 (572 ) Outstanding at March 31, 2018 162,853 $ 166.40 209,577 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 (dollars in thousands): Non-designated Hedges Interest Rate Caps Cash Flow Hedges Interest Rate Caps Notional balance $ 688,044 $ 34,820 Weighted average interest rate (1) 3.2 % 3.5 % Weighted average swapped/capped interest rate 6.5 % 5.9 % Earliest maturity date Aug 2018 Apr 2019 Latest maturity date Sep 2022 Apr 2019 ____________________________________ (1) For interest rate caps, represents the weighted average interest rate on the hedged debt. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | For the three months ended 3/31/2018 3/31/2017 Cash flow hedge losses reclassified to earnings $ 1,756 $ 1,752 |
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): 3/31/2018 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Non-Designated Hedges Interest Rate Caps $ 18 $ — $ 18 $ — Puts (3,245 ) — — (3,245 ) DownREIT units (1,234 ) (1,234 ) — — Indebtedness Unsecured notes (5,585,598 ) (5,585,598 ) — — Secured notes payable and variable rate unsecured indebtedness (1,817,732 ) — (1,817,732 ) — Total $ (7,407,791 ) $ (5,586,832 ) $ (1,817,714 ) $ (3,245 ) 12/31/2017 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Non-Designated Hedges Interest Rate Caps $ 2 $ — $ 2 $ — Cash Flow Hedges Interest Rate Swaps - Assets 2,270 — 2,270 — Interest Rate Swaps - Liabilities (1,171 ) — (1,171 ) — Puts (3,245 ) — — (3,245 ) DownREIT units (1,338 ) (1,338 ) — — Indebtedness Unsecured notes (5,446,604 ) (5,446,604 ) — — Secured notes payable and variable rate unsecured indebtedness (1,849,851 ) — (1,849,851 ) — Total $ (7,299,937 ) $ (5,447,942 ) $ (1,848,750 ) $ (3,245 ) |
Organization, Basis of Presen26
Organization, Basis of Presentation and Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2018statecommunityhomeshares | |
Accounting Policies [Abstract] | |
Number of operating apartment communities | community | 270 |
Number of apartment homes included in operating apartment communities owned | home | 78,388 |
Number of states where operating apartment communities owned are located | state | 12 |
Number of Communities with Apartments under Reconstruction | community | 15 |
Number of Apartment Homes under Reconstruction | home | 6,260 |
Number of owned communities under construction | community | 18 |
Expected number of apartment homes under construction | home | 5,774 |
Communities under development rights | community | 28 |
Estimated number of apartment homes in communities to be developed | home | 9,268 |
Antidilutive securities excluded from computation of earnings per share, amount | shares | 6,995 |
Organization, Basis of Presen27
Organization, Basis of Presentation and Significant Accounting Policies (Details 2) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)communityClaimhomeplaintiffbuilding$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | |
Basic and diluted shares outstanding | ||
Weighted average common shares - basic (in shares) | shares | 137,764,468 | 137,068,874 |
Weighted average DownREIT units outstanding (in shares) | shares | 7,500 | 7,500 |
Effect of dilutive securities (in shares) | shares | 381,202 | 454,868 |
Weighted average common shares - diluted (in shares) | shares | 138,153,170 | 137,531,242 |
Calculation of Earnings per Share - basic | ||
Net income attributable to common stockholders | $ | $ 141,643 | $ 235,875 |
Net income allocated to unvested restricted shares | $ | (430) | (652) |
Net income attributable to common stockholders, adjusted | $ | $ 141,213 | $ 235,223 |
Weighted average common shares - basic (in shares) | shares | 137,764,468 | 137,068,874 |
Earnings per common share - basic (in dollars per share) | $ / shares | $ 1.03 | $ 1.72 |
Calculation of Earnings per Share - diluted | ||
Net income attributable to common stockholders | $ | $ 141,643 | $ 235,875 |
Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships | $ | 11 | 11 |
Adjusted net income attributable to common stockholders | $ | $ 141,654 | $ 235,886 |
Weighted average common shares - diluted (in shares) | shares | 138,153,170 | 137,531,242 |
Earnings per common share - diluted (in dollars per share) | $ / shares | $ 1.03 | $ 1.72 |
Loss Contingencies [Line Items] | ||
Number of operating apartment communities | community | 270 | |
Number of apartment homes included in operating apartment communities owned | home | 78,388 | |
Avalon at Edgewater | ||
Loss Contingencies [Line Items] | ||
Number of operating apartment communities | building | 2 | |
Number of operating apartment communities, uninhabitable | building | 1 | |
Number of units in operating apartment communities, uninhabitable | home | 240 | |
Number of apartment homes included in operating apartment communities owned | home | 168 | |
Loss contingency, new class action claims filed number | 3 | |
Loss contingency class action claims filed, number of apartments included in settlement | 66 | |
Loss Contingency Class Action Claims Filed, Number of Apartments Included in Settlement Submitted | 44 | |
Loss Contingency Class Action Claims Filed, Number of Apartments Included in Settlement Submitted Amount | $ | $ 6,900 | |
Loss Contingency Class Action Claims Filed, Number of Apartments Issued Awards By Claims Adjuster | 17 | |
Loss contingency, total class action claims filed number | 4 | |
Loss contingency, claims filed, number, consolidated | 18 | |
Loss contingency, new claims filed, number | 19 | |
Loss contingency, number of plaintiffs | plaintiff | 143 | |
Loss Contingency Class Action Claims Filed, Number of Apartments in Settlement Resolved | 50 | |
Loss Contingency Class Action Claims Filed, Number of Apartments in Settlement Previously Resolved | 10 | |
Loss Contingency Subrogation Claims Filed Pending Not Dismissed Number | 1 | |
Loss Contingency Class Action Claims Filed, Number of Apartments Included in Settlement Remaining | 1 | |
Loss contingency, new subrogation claims filed, number | 7 | |
Loss contingency, subrogation claims filed dismissed, number | 1 | |
Loss Contingency Subrogation Claims Filed Pending Not Dismissed Number | 1 | |
Loss Contingency Subrogation Claims Filed Resolved Number | 1 | |
Loss contingency, subrogation claims filed pending, number | 4 |
Organization, Basis of Presen28
Organization, Basis of Presentation and Significant Accounting Policies (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Lease income | $ 559,906 | $ 521,126 |
Total revenue | 560,792 | 522,326 |
Operating Segments | Established Communities | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 417,544 | 382,757 |
Operating Segments | Other Stabilized Communities | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 71,203 | 70,116 |
Non-allocated | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 886 | 1,200 |
Continuing Operations | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 5,507 | 5,516 |
Lease income | 552,060 | 504,104 |
Total revenue | 557,567 | 509,620 |
Continuing Operations | Management, development and other fees | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 886 | 1,200 |
Continuing Operations | Rental and non-rental related income | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 4,621 | 4,316 |
Continuing Operations | Operating Segments | Established Communities | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 2,399 | 2,224 |
Lease income | 415,145 | 380,533 |
Total revenue | 417,544 | 382,757 |
Continuing Operations | Operating Segments | Other Stabilized Communities | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 1,817 | 1,687 |
Lease income | 69,386 | 68,429 |
Total revenue | 71,203 | 70,116 |
Continuing Operations | Operating Segments | Development/ Redevelopment Communities | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 405 | 405 |
Lease income | 67,529 | 55,142 |
Total revenue | 67,934 | 55,547 |
Continuing Operations | Operating Segments | Management, development and other fees | Established Communities | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 0 | 0 |
Continuing Operations | Operating Segments | Management, development and other fees | Other Stabilized Communities | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 0 | 0 |
Continuing Operations | Operating Segments | Management, development and other fees | Development/ Redevelopment Communities | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 0 | 0 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Established Communities | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 2,399 | 2,224 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Other Stabilized Communities | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 1,817 | 1,687 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Development/ Redevelopment Communities | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 405 | 405 |
Continuing Operations | Non-allocated | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 886 | 1,200 |
Lease income | 0 | 0 |
Total revenue | 886 | 1,200 |
Continuing Operations | Non-allocated | Management, development and other fees | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | 886 | 1,200 |
Continuing Operations | Non-allocated | Rental and non-rental related income | ||
Disaggregation of Revenue [Line Items] | ||
Non-lease revenue | $ 0 | $ 0 |
Organization, Basis of Presen29
Organization, Basis of Presentation and Significant Accounting Policies (Details 4) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by operating activities | $ 315,913 | $ 299,895 |
Net cash used in investing activities | (319,280) | (108,880) |
Net cash used in financing activities | 72,868 | (152,272) |
Net increase in cash, cash equivalents and restricted cash | 69,501 | 38,743 |
Cash, cash equivalents, beginning of period | 67,088 | |
Cash and cash equivalents and restricted cash, beginning of period | 201,906 | 329,977 |
Cash, cash equivalents, end of period | 137,244 | 121,705 |
Cash and cash equivalents and restricted cash, end of period | $ 271,407 | 368,720 |
Scenario, Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by operating activities | 293,462 | |
Net cash used in investing activities | (235,347) | |
Net cash used in financing activities | (151,404) | |
Net (decrease) increase in cash, cash equivalents | (93,289) | |
Cash, cash equivalents, beginning of period | 214,994 | |
Cash, cash equivalents, end of period | 121,705 | |
Impact of ASU 2016-18 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by operating activities | 6,433 | |
Net cash used in investing activities | 126,467 | |
Net cash used in financing activities | (868) | |
Net (decrease) increase in cash, cash equivalents | 93,289 | |
Net increase in cash, cash equivalents and restricted cash | 38,743 | |
Cash, cash equivalents, beginning of period | (214,994) | |
Cash and cash equivalents and restricted cash, end of period | $ 247,015 |
Interest Capitalized (Details)
Interest Capitalized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest Capitalized | ||
Capitalized interest during the development and redevelopment of real estate assets | $ 13,164 | $ 17,821 |
Mortgage Notes Payable, Unsec31
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Notes Payable, Unsecured Notes and Credit Facility | ||
Total mortgage notes payable, unsecured notes and Term Loans | $ 7,675,879 | $ 7,404,313 |
Credit Facility | 0 | 0 |
Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility | 7,675,879 | 7,404,313 |
Unsecured notes | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Fixed rate notes | 5,650,000 | 5,350,000 |
Variable rate notes | 300,000 | 300,000 |
Total mortgage notes payable, unsecured notes and Term Loans | 6,200,000 | |
Amount of debt discount | 11,039 | 10,850 |
Amount of deferred financing costs, net | 38,328 | 36,386 |
Term Loans | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Variable rate notes | 250,000 | 250,000 |
Secured notes | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Fixed rate notes | 566,091 | 593,987 |
Variable rate notes | 909,788 | 910,326 |
Total mortgage notes payable, unsecured notes and Term Loans | 1,300,529 | |
Amount of debt discount | 16,328 | 16,351 |
Amount of deferred financing costs, net | $ 10,729 | $ 11,256 |
Mortgage Notes Payable, Unsec32
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details 2) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2018 | Feb. 28, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Notes Payable, Unsecured Notes and Credit Facility | |||||
Loss on extinguishment of debt, net | $ 397,000 | $ 0 | |||
Credit Facility | $ 0 | 0 | $ 0 | ||
Net carrying value of apartment communities and improved land parcels securing debt | 2,252,748,000 | 2,252,748,000 | |||
Mortgage notes payable | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Mortgage notes payable held by wholly owned subsidiaries guaranteed by the Company | 100,000,000 | 100,000,000 | |||
Unsecured Notes 4.35 Percent [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument, face amount | 300,000,000 | $ 300,000,000 | |||
Proceeds from issuance of debt | $ 296,210,000 | ||||
Unsecured Notes 3.97 Percent First 10 Years [Member] | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt Instrument, Term | 10 years | ||||
Current interest rate (as a percent) | 3.97% | 3.97% | |||
Unsecured Notes 4.39 Percent Remaining 20 Years [Member] | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Current interest rate (as a percent) | 4.39% | 4.39% | |||
Line of Credit [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Available borrowing capacity | $ 1,500,000,000 | $ 1,500,000,000 | |||
Line of credit facility, extension period | 9 months | ||||
Extension fee | $ 1,500,000 | ||||
Period of borrowing rate assumed | 1 month | ||||
Annual facility fee, percentage | 0.125% | ||||
Annual facility fee | $ 1,875,000 | ||||
Credit Facility | 0 | 0 | 0 | ||
Outstanding balance of letters of credit | $ 43,352,000 | $ 43,352,000 | $ 47,315,000 | ||
Line of Credit [Member] | LIBOR | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Debt instrument, basis spread on variable rate (as a percent) | 0.825% | ||||
Current interest rate (as a percent) | 2.71% | 2.71% | |||
Notes Payable Maturities 2043 [Member] | Mortgage notes payable | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Repayments of secured mortgages | $ 15,174,000 | ||||
Loss on extinguishment of debt, net | (426,000) | ||||
Prepayment penalty | 152,000 | ||||
Write off of deferred debt issuance cost | 274,000 | ||||
Notes Payable Maturities 2018 | Mortgage notes payable | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Repayments of secured mortgages | $ 11,038,000 | ||||
Unsecured Notes 4.35 Percent [Member] | Unsecured notes | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Stated interest rate of unsecured notes (as a percent) | 4.35% | 4.35% | |||
Fixed Rate Mortgage Notes Payable [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Weighted average interest rate, debt (as a percent) | 3.90% | 3.90% | 4.00% | ||
Variable Rate Mortgage Notes Payable Unsecured Term Loan and Credit Facility [Member] | |||||
Notes Payable, Unsecured Notes and Credit Facility | |||||
Weighted average interest rate, debt (as a percent) | 3.30% | 3.30% | 3.20% |
Mortgage Notes Payable, Unsec33
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 7,675,879 | $ 7,404,313 |
Secured notes | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 175,350 | |
Mortgage notes payable and unsecured notes | 1,300,529 | |
Secured notes | Notes Payable Maturities 2018 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 5,273 | |
Mortgage notes payable and unsecured notes | 65,183 | |
Secured notes | Notes Payable Maturities 2019 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 4,443 | |
Mortgage notes payable and unsecured notes | 114,721 | |
Secured notes | Notes Payable Maturities 2020 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 3,345 | |
Mortgage notes payable and unsecured notes | 140,429 | |
Secured notes | Notes Payable Maturities 2021 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 3,259 | |
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 | 3,483 | |
Secured notes | Notes Payable Maturities 2023 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 3,713 | |
Secured notes | Notes Payable Maturities 2024 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 3,950 | |
Secured notes | Notes Payable Maturities 2025 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 4,202 | |
Mortgage notes payable and unsecured notes | 84,835 | |
Secured notes | Notes Payable Maturities 2026 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 4,486 | |
Secured notes | Notes Payable Maturities 2027 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 4,048 | |
Mortgage notes payable and unsecured notes | 185,100 | |
Secured notes | Notes Payable Maturities Thereafter | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Secured notes payments | 135,148 | |
Mortgage notes payable and unsecured notes | 682,417 | |
Unsecured notes | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | 6,200,000 | |
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 Maturities 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 | Variable Rate Unsecured Term Loan $300 Million | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 300,000 | |
Unsecured notes | Variable Rate Unsecured Term Loan $300 Million | LIBOR | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Debt instrument, basis spread on variable rate (as a percent) | 0.43% | |
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 | Variable Rate Unsecured Term Loan $100 Million | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 100,000 | |
Unsecured notes | Variable Rate Unsecured Term Loan $100 Million | LIBOR | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Debt instrument, basis spread on variable rate (as a percent) | 0.90% | |
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 | ||
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 | Variable Rate Unsecured Term Loan $150 Million | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 150,000 | |
Unsecured notes | Variable Rate Unsecured Term Loan $150 Million | LIBOR | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Debt instrument, basis spread on variable rate (as a percent) | 1.50% | |
Unsecured notes | Notes Payable 3.450 Maturities 2025 | ||
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 | ||
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 2.950 Maturities 2026 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 475,000 | |
Stated interest rate of unsecured notes (as a percent) | 2.95% | |
Unsecured notes | Notes Payable 2.900 Maturities 2026 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 300,000 | |
Stated interest rate of unsecured notes (as a percent) | 2.90% | |
Unsecured notes | Notes Payable Maturities 2027 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 400,000 | |
Stated interest rate of unsecured notes (as a percent) | 3.35% | |
Unsecured notes | Notes Payable Maturities 2046 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 350,000 | |
Stated interest rate of unsecured notes (as a percent) | 3.90% | |
Unsecured notes | Notes Payable Maturities 2047 | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 300,000 | |
Stated interest rate of unsecured notes (as a percent) | 4.15% | |
Unsecured notes | Notes Payable Maturities 2028 [Member] | ||
Notes Payable, Unsecured Notes and Credit Facility | ||
Mortgage notes payable and unsecured notes | $ 450,000 | |
Stated interest rate of unsecured notes (as a percent) | 3.20% | |
Unsecured notes | Notes Payable Maturities 2048 [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) | 4.35% |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Changes in equity | ||
Beginning Balance | $ 10,388,046 | |
Net income attributable to common stockholders | 141,643 | $ 235,875 |
Gain on cash flow hedges | 11,501 | 145 |
Cash flow hedge losses reclassified to earnings | 1,756 | 1,752 |
Change in redemption value of redeemable noncontrolling interest | (63) | |
Dividends declared to common stockholders | (203,166) | |
Issuance of common stock, net of withholdings | (11,142) | |
Amortization of deferred compensation | 6,549 | |
Ending Balance | 10,335,124 | |
Common stock | ||
Changes in equity | ||
Beginning Balance | 1,381 | |
Issuance of common stock, net of withholdings | 1 | |
Ending Balance | 1,382 | |
Additional paid-in capital | ||
Changes in equity | ||
Beginning Balance | 10,235,475 | |
Issuance of common stock, net of withholdings | (12,286) | |
Amortization of deferred compensation | 6,549 | |
Ending Balance | 10,229,738 | |
Accumulated earnings less dividends | ||
Changes in equity | ||
Beginning Balance | 188,609 | |
Net income attributable to common stockholders | 141,643 | |
Change in redemption value of redeemable noncontrolling interest | (63) | $ 183 |
Dividends declared to common stockholders | (203,166) | |
Issuance of common stock, net of withholdings | 1,143 | |
Ending Balance | 128,166 | |
Accumulated other comprehensive loss | ||
Changes in equity | ||
Beginning Balance | (37,419) | |
Gain on cash flow hedges | 11,501 | |
Cash flow hedge losses reclassified to earnings | 1,756 | |
Ending Balance | $ (24,162) |
Equity (Details 2)
Equity (Details 2) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 280,000,000 | 280,000,000 | |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |
Common stock issued through the dividend reinvestment plan (in shares) | 566 | 1,165 | |
Number of shares of stock grants withheld (in shares) | 67,609 | 57,172 | |
Stock issued during period, shares, share-based compensation, forfeited (in shares) | 1,829 | ||
Continuous Equity Program CEP IV | |||
Class of Stock [Line Items] | |||
Maximum value of shares of common stock that can be sold (in dollars) | $ 1,000,000,000 | ||
Common stock value, remaining to be authorized under continuous equity program | $ 892,915,000 | ||
Maximum | Continuous Equity Program CEP IV | |||
Class of Stock [Line Items] | |||
Percentage of compensation received by sales agent | 2.00% | ||
Restricted Stock and Restricted Stock Converted From Performance Shares | |||
Class of Stock [Line Items] | |||
Equity instruments granted (in shares) | 182,998 | 198,502 |
Investments in Real Estate En36
Investments in Real Estate Entities - Narrative of Investment in Real Estate Entities (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)entity | Dec. 31, 2017USD ($) | |
Equity method investment | ||
Equity method investment, difference between carrying amount and underlying equity | $ 35,052 | $ 35,402 |
Unconsolidated real estate entities | ||
Equity method investment | ||
Number of unconsolidated real estate entities | entity | 5 | |
Avalon Bay Value Added Fund II LP | ||
Equity method investment | ||
Equity method investment, ownership percentage | 31.30% | |
Percentage of right of distribution | 40.00% | |
Percentage of right of remaining distribution | 60.00% | |
Proceeds from equity method investment, dividends or distributions | $ 925 | |
Avalon Brooklyn Bay | ||
Equity method investment | ||
Variable interest entity, qualitative or quantitative information, ownership percentage | 70.00% | |
Variable interest entity, ownership interest by partner | 30.00% | |
Due from related parties | $ 41,976 | |
Avalon Brooklyn Bay Condominiums [Member] | ||
Equity method investment | ||
Variable interest entity, ownership interest by partner | 100.00% | |
Avalon Brooklyn Bay Rental Apartments [Member] | ||
Equity method investment | ||
Variable interest entity, qualitative or quantitative information, ownership percentage | 100.00% | |
Minimum | Unconsolidated real estate entities | ||
Equity method investment | ||
Equity method investment, ownership percentage | 20.00% | |
Maximum [Member] | Unconsolidated real estate entities | ||
Equity method investment | ||
Equity method investment, ownership percentage | 31.30% |
Investments in Real Estate En37
Investments in Real Estate Entities - Financial Position and Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Assets: | |||
Real estate, net | $ 689,612 | $ 695,077 | |
Other assets | 38,084 | 39,976 | |
Total assets | 727,696 | 735,053 | |
Liabilities and partners' capital: | |||
Mortgage notes payable and credit facility | 523,008 | 523,815 | |
Other liabilities | 13,406 | 10,540 | |
Partners' capital | 191,282 | 200,698 | |
Total liabilities and partners' capital | 727,696 | $ 735,053 | |
Combined summary of the operating results of the accounted for using the equity method | |||
Rental and other income | 21,801 | $ 28,642 | |
Operating and other expenses | (8,305) | (11,094) | |
Gain on sale of communities | 0 | 29,447 | |
Interest expense, net | (5,618) | (6,948) | |
Depreciation expense | (5,880) | (7,327) | |
Net income | $ 1,998 | $ 32,720 |
Investments in Real Estate En38
Investments in Real Estate Entities - Expensed Acquisition, Development and Other Pursuit Costs and Impairment of Long-Lived Assets & Casualty Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Equity method investment | |||
Expensed acquisition, development and other pursuit costs, net of recoveries | $ 800 | $ 728 | |
Impairment of investment in unconsolidated entities | 0 | 0 | |
Casualty and impairment loss (gain), net | (58) | 11,688 | |
Net operating real estate | 16,251,023 | $ 16,342,893 | |
Insurance proceeds for property damage claims | $ 58 | 4,095 | |
Land Parcel [Member] | |||
Equity method investment | |||
Casualty and impairment loss (gain), net | 9,350 | ||
Avalon Maplewood | |||
Equity method investment | |||
Casualty and impairment loss (gain), net | 2,338 | ||
Casualty Loss | 19,481 | ||
Net operating real estate | 16,361 | ||
Other nonrecurring expense | 3,120 | ||
Insurance recoveries | 17,143 | ||
Insurance proceeds for property damage claims | $ 4,545 |
Real Estate Disposition Activ39
Real Estate Disposition Activities (Details) | Mar. 31, 2018community |
Summary of income from discontinued operations | |
Number of Communities Held for Sale | 2 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of NOI to net income | ||
Net income | $ 141,590 | $ 235,781 |
Indirect operating expenses, net of corporate income | 18,082 | 16,297 |
Investments and investment management expense | 1,643 | 1,321 |
Expensed acquisition, development and other pursuit costs, net of recoveries | 800 | 728 |
Interest expense, net | 55,113 | 49,295 |
Loss on extinguishment of debt, net | 397 | 0 |
General and administrative expense | 13,664 | 13,206 |
Equity in income of unconsolidated real estate entities | (1,740) | (16,672) |
Depreciation expense | 159,059 | 140,621 |
Income tax expense | 0 | 20 |
Casualty and impairment loss (gain), net | (58) | 11,688 |
Gain on sale of communities | 0 | (87,949) |
Loss (gain) on other real estate transactions | 47 | (366) |
Net operating income from real estate assets sold or held for sale | (2,144) | (8,101) |
Net operating income | $ 386,453 | $ 355,869 |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting [Abstract] | ||
Rental income from real estate assets sold or held for sale | $ 3,225 | $ 12,706 |
Operating expenses from real estate assets sold or held for sale | (1,081) | (4,605) |
Net operating income from real estate assets sold or held for sale | $ 2,144 | $ 8,101 |
Segment Reporting (Details 3)
Segment Reporting (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting | ||
Total revenue | $ 560,792 | $ 522,326 |
NOI | $ 386,453 | $ 355,869 |
% NOI change from prior year | 8.60% | 3.40% |
Gross real estate | $ 22,108,756 | $ 20,919,484 |
Gross real estate assets held for sale | 153,151 | |
Operating Segments | Established | ||
Segment Reporting | ||
Total revenue | 417,544 | 382,757 |
NOI | $ 295,357 | $ 272,020 |
% NOI change from prior year | 1.20% | 3.10% |
Gross real estate | $ 14,515,336 | $ 13,393,588 |
Operating Segments | Established | New England | ||
Segment Reporting | ||
Total revenue | 57,909 | 56,154 |
NOI | $ 37,643 | $ 36,180 |
% NOI change from prior year | 1.80% | 1.00% |
Gross real estate | $ 1,973,203 | $ 1,875,024 |
Operating Segments | Established | Metro NY/NJ | ||
Segment Reporting | ||
Total revenue | 104,096 | 85,760 |
NOI | $ 71,921 | $ 58,938 |
% NOI change from prior year | 0.90% | 2.90% |
Gross real estate | $ 3,722,387 | $ 2,903,317 |
Operating Segments | Established | Mid-Atlantic | ||
Segment Reporting | ||
Total revenue | 59,159 | 55,755 |
NOI | $ 41,067 | $ 39,147 |
% NOI change from prior year | 0.20% | 3.70% |
Gross real estate | $ 2,233,711 | $ 2,062,311 |
Operating Segments | Established | Pacific Northwest | ||
Segment Reporting | ||
Total revenue | 21,242 | 20,454 |
NOI | $ 14,838 | $ 14,815 |
% NOI change from prior year | (0.60%) | 5.20% |
Gross real estate | $ 725,487 | $ 731,537 |
Operating Segments | Established | Northern California | ||
Segment Reporting | ||
Total revenue | 92,197 | 83,323 |
NOI | $ 70,494 | $ 63,717 |
% NOI change from prior year | 1.80% | 2.00% |
Gross real estate | $ 3,017,863 | $ 2,815,589 |
Operating Segments | Established | Southern California | ||
Segment Reporting | ||
Total revenue | 82,941 | 81,311 |
NOI | $ 59,394 | $ 59,223 |
% NOI change from prior year | 1.90% | 5.00% |
Gross real estate | $ 2,842,685 | $ 3,005,810 |
Operating Segments | Other Stabilized | ||
Segment Reporting | ||
Total revenue | 71,203 | 70,116 |
NOI | 47,265 | 48,943 |
Gross real estate | 3,036,815 | 3,032,689 |
Operating Segments | Development / Redevelopment | ||
Segment Reporting | ||
Total revenue | 67,934 | 55,547 |
NOI | 43,831 | 34,906 |
Gross real estate | 4,321,466 | 4,276,266 |
Land Held for Future Development | ||
Segment Reporting | ||
Gross real estate | 136,771 | 103,954 |
Non-allocated | ||
Segment Reporting | ||
Total revenue | 886 | 1,200 |
Gross real estate | 98,368 | 112,987 |
Continuing Operations | ||
Segment Reporting | ||
Total revenue | 557,567 | 509,620 |
Continuing Operations | Operating Segments | Established | ||
Segment Reporting | ||
Total revenue | 417,544 | 382,757 |
Continuing Operations | Operating Segments | Other Stabilized | ||
Segment Reporting | ||
Total revenue | 71,203 | 70,116 |
Continuing Operations | Non-allocated | ||
Segment Reporting | ||
Total revenue | $ 886 | $ 1,200 |
Stock-Based Compensation Plan43
Stock-Based Compensation Plans (Details) - Employee and Directors Stock Options | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
2009 Plan | |
Stock-Based Compensation Plans | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 149,973 |
Shares | |
Options outstanding at the beginning of the period (in shares) | shares | 149,973 |
Exercised (in shares) | shares | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 6,995 |
Forfeited (in shares) | shares | 0 |
Options outstanding at the end of the period (in shares) | shares | 156,968 |
Weighted average exercise price per share | |
Options outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 126.77 |
Exercised (in dollars per share) | $ / shares | 0 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | 161.10 |
Forfeited (in dollars per share) | $ / shares | 0 |
Options outstanding at the end of the period (in dollars per share) | $ / shares | 128.30 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 126.77 |
1994 Plan | |
Stock-Based Compensation Plans | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 7,778 |
Shares | |
Options outstanding at the beginning of the period (in shares) | shares | 7,778 |
Exercised (in shares) | shares | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 0 |
Forfeited (in shares) | shares | 0 |
Options outstanding at the end of the period (in shares) | shares | 7,778 |
Weighted average exercise price per share | |
Options outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 48.60 |
Exercised (in dollars per share) | $ / shares | 0 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Options outstanding at the end of the period (in dollars per share) | $ / shares | 48.60 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 48.60 |
Stock-Based Compensation Plan44
Stock-Based Compensation Plans (Details 2) - Performance Shares | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Performance awards | |
Equity instruments outstanding at the beginning of the period (in shares) | 251,770 |
Equity instruments granted (in shares) | 100,501 |
Change in awards based on performance (in shares) | 5,990 |
Converted to restricted stock (in shares) | (88,477) |
Forfeited (in shares) | (1,271) |
Equity instruments outstanding at the end of the period (in shares) | 268,513 |
Weighted average grant date fair value per award | |
Equity instruments outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 155.25 |
Grant date fair value per share (in dollars per share) | $ / shares | 155.31 |
Change in awards based on performance (in dollars per share) | $ / shares | 148.79 |
Converted to restricted stock (in dollars per share) | $ / shares | 148.79 |
Forfeited (in dollars per share) | $ / shares | 157.06 |
Equity instruments outstanding at the end of the period (in dollars per share) | $ / shares | $ 157.25 |
Grants in period based on total shareholder metrics | 61,746 |
Grants in period based on financial metrics | 38,755 |
Stock-Based Compensation Plan45
Stock-Based Compensation Plans Stock-Based Compensation Plans (Details 3) - Performance Shares | 3 Months Ended |
Mar. 31, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend yield (as a percent) | 3.70% |
Estimated volatility, Minimum (as a percent) | 11.80% |
Estimated volatility, Maximum (as a percent) | 18.70% |
Risk-free interest rate, minimum (as a percent) | 1.86% |
Risk-free interest rate, maximum (as a percent) | 2.46% |
Average estimated fair value (in dollars per share) | $ 151.67 |
Historical volatility (as a percent) | 50.00% |
Implied volatility (as a percent) | 50.00% |
Stock-Based Compensation Plan46
Stock-Based Compensation Plans Stock-Based Compensation Plans (Details 4) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restricted stock | ||
Restricted stock shares | ||
Equity instruments outstanding at the beginning of the period (in shares) | 133,633 | |
Equity instruments granted (in shares) | 94,701 | 70,020 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | (64,224) | |
Forfeited (in shares) | (1,257) | |
Equity instruments outstanding at the end of the period (in shares) | 162,853 | |
Restricted stock shares weighted average grant date fair value per share | ||
Equity instruments outstanding at the beginning of the period (in dollars per share) | $ 172.33 | |
Grant date fair value per share (in dollars per share) | 161.32 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value (in dollars per share) | 171.20 | |
Forfeited (in dollars per share) | 168.68 | |
Equity instruments outstanding at the end of the period (in dollars per share) | $ 166.40 | |
Restricted Stock Converted From Performance Shares | ||
Restricted stock shares | ||
Equity instruments outstanding at the beginning of the period (in shares) | 233,928 | |
Equity instruments granted (in shares) | 88,297 | 128,482 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | (112,076) | |
Forfeited (in shares) | (572) | |
Equity instruments outstanding at the end of the period (in shares) | 209,577 |
Stock-Based Compensation Plan47
Stock-Based Compensation Plans (Details 5) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Additional disclosures | ||
Stock-based compensation expense | $ 3,846 | $ 3,986 |
Capitalized stock-based compensation cost | $ 2,086 | $ 2,078 |
Performance Shares | ||
Additional disclosures | ||
Grant date value (in dollars per share) | $ 161.10 | |
Restricted stock and restricted stock units | ||
Additional disclosures | ||
Unrecognized compensation cost for unvested restricted stock | $ 50,913 | |
Weighted average period for recognition of unrecognized compensation cost | 3 years 1 month 6 days | |
Employee and Directors Stock Options | ||
Additional disclosures | ||
Unrecognized compensation cost for unvested stock options | $ 69 | |
Weighted average period for recognition of unrecognized compensation cost | 4 months 24 days |
Related Party Arrangements (Det
Related Party Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Related Party Arrangements | |||
Management, development and other fees | $ 886 | $ 1,200 | |
Compensation expense | 3,846 | 3,986 | |
Unconsolidated real estate entities | |||
Related Party Arrangements | |||
Outstanding receivables | 4,265 | $ 2,449 | |
Non Employee Director | Restricted stock and deferred stock awards | |||
Related Party Arrangements | |||
Compensation expense | 389 | $ 371 | |
Amount of deferred compensation | $ 189 | $ 525 |
Fair Value (Details)
Fair Value (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)venturederivative | Mar. 31, 2017USD ($) | |
Derivative instruments and Hedging Activities | ||
Derivative, notional amounts settled during period | $ 300,000 | |
Receipts (payments) for termination of forward interest rate swaps | $ (12,598) | $ 0 |
Amortization period of deferred gain (loss) on discontinuation of interest rate fair value hedge | 10 years | |
Gain on cash flow hedges | $ 11,501 | $ 145 |
Cash Flow Hedges | ||
Derivative instruments and Hedging Activities | ||
Number of derivative instruments held | derivative | 1 | |
Interest Rate Cap | Cash Flow Hedges | ||
Derivative instruments and Hedging Activities | ||
Notional amount | $ 34,820 | |
Interest Rate Swap | Cash Flow Hedges | ||
Derivative instruments and Hedging Activities | ||
Notional amount | $ 0 | |
Put Option | ||
Derivative instruments and Hedging Activities | ||
Number of ventures in which entity is required to purchase interest in investment at guaranteed minimum amount | venture | 3 | |
Not Designated as Hedging Instrument | ||
Derivative instruments and Hedging Activities | ||
Number of derivative instruments held | derivative | 14 | |
Not Designated as Hedging Instrument | Interest Rate Cap | ||
Derivative instruments and Hedging Activities | ||
Notional amount | $ 688,044 | |
Reclassification out of Accumulated Other Comprehensive Income | ||
Derivative instruments and Hedging Activities | ||
Estimated hedging losses to be reclassified from accumulated other comprehensive loss into earnings within the next twelve months | $ 5,752 |
Fair Value Fair Value (Details
Fair Value Fair Value (Details 2) $ in Thousands | Mar. 31, 2018USD ($) |
Not Designated as Hedging Instrument | Interest Rate Cap | |
Derivative instruments and Hedging Activities | |
Notional amount | $ 688,044 |
Derivative weighted average interest rate | 3.20% |
Derivative, average cap interest rate | 6.50% |
Cash Flow Hedges | Interest Rate Cap | |
Derivative instruments and Hedging Activities | |
Notional amount | $ 34,820 |
Derivative weighted average interest rate | 3.50% |
Derivative, average cap interest rate | 5.90% |
Cash Flow Hedges | Interest Rate Swap | |
Derivative instruments and Hedging Activities | |
Notional amount | $ 0 |
Fair Value (Details 3)
Fair Value (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Cash flow hedge losses reclassified to earnings | $ (1,756) | $ (1,752) |
Fair Value (Details 4)
Fair Value (Details 4) - Recurring basis - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Estimate of Fair Value Measurement | ||
Financial Instruments Measured/Discussed at Fair Value | ||
DownREIT units | $ (1,234) | $ (1,338) |
Total | (7,407,791) | (7,299,937) |
Estimate of Fair Value Measurement | Unsecured notes | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (5,585,598) | (5,446,604) |
Estimate of Fair Value Measurement | Secured Debt and Variable Rate Unsecured Indebtedness | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (1,817,732) | (1,849,851) |
Estimate of Fair Value Measurement | Interest Rate Cap | Not Designated as Hedging Instrument | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 18 | 2 |
Estimate of Fair Value Measurement | Interest Rate Swap | Cash Flow Hedges | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 2,270 | |
Derivative liability | (1,171) | |
Estimate of Fair Value Measurement | Put Option | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Fair value of remaining outstanding Puts | (3,245) | (3,245) |
Fair Value, Inputs, Level 1 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
DownREIT units | (1,234) | (1,338) |
Total | (5,586,832) | (5,447,942) |
Fair Value, Inputs, Level 1 | Unsecured notes | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (5,585,598) | (5,446,604) |
Fair Value, Inputs, Level 2 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Total | (1,817,714) | (1,848,750) |
Fair Value, Inputs, Level 2 | Secured Debt and Variable Rate Unsecured Indebtedness | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (1,817,732) | (1,849,851) |
Fair Value, Inputs, Level 2 | Interest Rate Cap | Not Designated as Hedging Instrument | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 18 | 2 |
Fair Value, Inputs, Level 2 | Interest Rate Swap | Cash Flow Hedges | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Derivative assets | 2,270 | |
Derivative liability | (1,171) | |
Fair Value, Inputs, Level 3 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Total | (3,245) | (3,245) |
Fair Value, Inputs, Level 3 | Put Option | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Fair value of remaining outstanding Puts | $ (3,245) | $ (3,245) |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 1 Months Ended | |||
May 04, 2018USD ($)communityhome | Feb. 28, 2018USD ($) | Mar. 31, 2018USD ($)community | Dec. 31, 2017USD ($) | |
Subsequent Event [Line Items] | ||||
Number of Communities Held for Sale | community | 2 | |||
Real Estate Investments, Net | $ 17,884,547 | $ 17,717,557 | ||
Avalon Blue Hills and Avalon Canton at Blue Hills [Member] | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of Communities Held for Sale | community | 2 | |||
Number of Apartment Homes Held for Sale | home | 472 | |||
Real Estate Investments, Net | $ 72,081 | |||
Secured notes | Notes Payable Maturities 2018 | ||||
Subsequent Event [Line Items] | ||||
Repayments of secured mortgages | $ 11,038 | |||
Secured notes | Notes Payable Maturities 2018 | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Repayments of secured mortgages | $ 13,380 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.06% |