Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 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 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 138,222,567 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Real estate: | ||
Land and improvements | $ 4,186,360 | $ 4,237,318 |
Buildings and improvements | 15,808,498 | 15,708,666 |
Furniture, fixtures and equipment | 673,013 | 615,288 |
Gross operating real estate | 20,667,871 | 20,561,272 |
Less accumulated depreciation | (4,585,609) | (4,218,379) |
Net operating real estate | 16,082,262 | 16,342,893 |
Construction in progress, including land | 1,651,406 | 1,306,300 |
Land held for development | 116,582 | 68,364 |
Real estate assets held for sale, net | 79,963 | 0 |
Total real estate, net | 17,930,213 | 17,717,557 |
Cash and cash equivalents | 55,887 | 67,088 |
Cash in escrow | 225,704 | 134,818 |
Resident security deposits | 34,132 | 32,686 |
Investments in unconsolidated real estate entities | 173,563 | 163,475 |
Deferred development costs | 45,869 | 45,819 |
Prepaid expenses and other assets | 196,751 | 253,378 |
Total assets | 18,662,119 | 18,414,821 |
LIABILITIES AND EQUITY | ||
Unsecured notes, net | 6,153,945 | 5,852,764 |
Variable rate unsecured credit facility | 56,000 | 0 |
Mortgage notes payable, net | 1,323,283 | 1,476,706 |
Dividends payable | 203,624 | 196,094 |
Payables for construction | 92,323 | 85,377 |
Accrued expenses and other liabilities | 300,827 | 308,189 |
Accrued interest payable | 66,546 | 43,116 |
Resident security deposits | 61,059 | 58,473 |
Liabilities related to real estate assets held for sale | 1,037 | 0 |
Total liabilities | 8,258,644 | 8,020,719 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 6,077 | 6,056 |
Equity: | ||
Preferred stock, $0.01 par value; $25 liquidation preference; 50,000,000 shares authorized at September 30, 2018 and December 31, 2017; zero shares issued and outstanding at September 30, 2018 and December 31, 2017 | 0 | 0 |
Common stock, $0.01 par value; 280,000,000 shares authorized at September 30, 2018 and December 31, 2017; 138,222,168 and 138,094,154 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 1,382 | 1,381 |
Additional paid-in capital | 10,249,311 | 10,235,475 |
Accumulated earnings less dividends | 167,946 | 188,609 |
Accumulated other comprehensive loss | (21,241) | (37,419) |
Total equity | 10,397,398 | 10,388,046 |
Total liabilities and equity | $ 18,662,119 | $ 18,414,821 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 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) | 138,222,168 | 138,094,154 |
Common stock, shares outstanding (in shares) | 138,222,168 | 138,094,154 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue: | ||||
Rental and other income | $ 575,070 | $ 549,507 | $ 1,703,263 | $ 1,600,047 |
Total revenue | 575,982 | 550,500 | 1,706,015 | 1,603,337 |
Expenses: | ||||
Operating expenses, excluding property taxes | 132,918 | 129,590 | 396,703 | 379,319 |
Property taxes | 61,230 | 57,698 | 181,120 | 164,195 |
Interest expense, net | 54,097 | 47,741 | 165,795 | 147,138 |
Loss on extinguishment of debt, net | 1,678 | 0 | 2,717 | 24,162 |
Depreciation expense | 156,538 | 144,990 | 472,282 | 427,050 |
General and administrative expense | 13,905 | 11,655 | 42,013 | 38,808 |
Expensed transaction, development and other pursuit costs, net of recoveries | 1,020 | 789 | 2,709 | 2,087 |
Casualty and impairment (gain) loss, net | 554 | 0 | 612 | (11,688) |
Total expenses | 420,832 | 392,463 | 1,262,727 | 1,194,447 |
Income before equity in income of unconsolidated real estate entities, gain (loss) on sale of communities and other real estate, and income taxes | 155,150 | 158,037 | 443,288 | 408,890 |
Equity in income of unconsolidated real estate entities | 10,031 | 52,568 | 12,560 | 70,386 |
Gain on sale of communities | 27,243 | 27,738 | 132,444 | 159,754 |
Gain (loss) on other real estate transactions, net | 12 | (120) | 335 | 246 |
Income before income taxes | 192,436 | 238,223 | 588,627 | 639,276 |
Income tax expense | 29 | 24 | 87 | 102 |
Net income | 192,407 | 238,199 | 588,540 | 639,174 |
Net loss attributable to noncontrolling interests | 79 | 49 | 251 | 174 |
Net income attributable to common stockholders | 192,486 | 238,248 | 588,791 | 639,348 |
Other comprehensive income (loss): | ||||
Gain (loss) on cash flow hedges | 0 | 359 | 11,499 | (15,654) |
Cash flow hedge losses reclassified to earnings | 1,466 | 1,767 | 4,679 | 5,301 |
Comprehensive income | $ 193,952 | $ 240,374 | $ 604,969 | $ 628,995 |
Earnings per common share - basic: | ||||
Net income attributable to common stockholders (in dollars per share) | $ 1.39 | $ 1.73 | $ 4.26 | $ 4.64 |
Earnings per common share - diluted: | ||||
Net income attributable to common stockholders (in dollars per share) | 1.39 | 1.72 | 4.26 | 4.63 |
Dividends per common share (in dollars per share) | $ 1.47 | $ 1.42 | $ 4.41 | $ 4.26 |
Management, development and other fees | ||||
Revenue: | ||||
Management, development and other fees | $ 912 | $ 993 | $ 2,752 | $ 3,290 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 588,540 | $ 639,174 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation expense | 472,282 | 427,050 |
Amortization of deferred financing costs | 6,066 | 5,729 |
Amortization of debt discount (premium) | 1,259 | (6,254) |
Loss on extinguishment of debt, net | 2,717 | 24,162 |
Amortization of stock-based compensation | 15,617 | 13,979 |
Equity in loss (income) of, and return on, unconsolidated real estate entities and noncontrolling interests, net of eliminations | 4,514 | (21,627) |
Casualty and impairment (gain) loss, net | (58) | 8,568 |
Abandonment of development pursuits | 725 | 388 |
Cash flow hedge losses reclassified to earnings | 4,679 | 5,301 |
Gain on sale of real estate assets | (141,415) | (200,110) |
Decrease (increase) in resident security deposits, prepaid expenses and other assets | 16,691 | (27,384) |
Increase in accrued expenses, other liabilities and accrued interest payable | 9,742 | 64,802 |
Net cash provided by operating activities | 981,359 | 933,778 |
Cash flows from investing activities: | ||
Development/redevelopment of real estate assets including land acquisitions and deferred development costs | (864,550) | (743,275) |
Payments to Acquire Other Real Estate | (84,088) | (228,011) |
Capital expenditures - existing real estate assets | (59,950) | (41,809) |
Capital expenditures - non-real estate assets | (2,142) | (5,308) |
Proceeds from sale of real estate, net of selling costs | 466,187 | 336,542 |
Insurance proceeds for property damage claims | 58 | 13,268 |
Mortgage note receivable lending | (2,880) | (14,244) |
Mortgage note receivable payments | 50,929 | 0 |
Increase (decrease) in payables for construction | 6,946 | (16,660) |
Distributions from unconsolidated real estate entities | 2,013 | 89,305 |
Investments in unconsolidated real estate entities | (7,979) | (14,560) |
Net cash used in investing activities | (495,456) | (624,752) |
Cash flows from financing activities: | ||
Issuance of common stock, net | 1,224 | 110,117 |
Dividends paid | (602,152) | (576,685) |
Proceeds from Unsecured Lines of Credit | 56,000 | 242,000 |
Proceeds from Notes Payable | 0 | 185,100 |
Repayments of mortgage notes payable, including prepayment penalties | (157,164) | (1,289,234) |
Issuance of unsecured notes | 299,442 | 948,616 |
Payment of deferred financing costs | (3,347) | (11,743) |
Payment of capital lease obligation | (802) | (18,683) |
Receipts for termination of forward interest rate swaps | 12,598 | 391 |
Payments related to tax withholding for share-based compensation | (10,543) | (10,460) |
Distributions to DownREIT partnership unitholders | (33) | (32) |
Contributions from joint venture and profit-sharing partners | 0 | 1,038 |
Distributions to joint venture and profit-sharing partners | (321) | (317) |
Preferred interest obligation redemption and dividends | (1,120) | (2,000) |
Net cash used in financing activities | (406,218) | (421,892) |
Net increase (decrease) in cash and cash equivalents | 79,685 | (112,866) |
Cash and cash equivalents and restricted cash, beginning of period | 201,906 | 329,977 |
Cash and cash equivalents and restricted cash, end of period | 281,591 | 217,111 |
Cash paid during the period for interest, net of amount capitalized | 130,361 | 124,585 |
Supplemental Cash Flow Information [Abstract] | ||
Cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statements of Cash Flows | $ 201,906 | $ 329,977 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Supplemental disclosures of non-cash investing and financing activities | |||||
Common stock issued through the dividend reinvestment plan (in shares) | 1,713 | 2,466 | |||
Common stock issued through the dividend reinvestment plan | $ 290 | $ 452 | |||
Number of shares withheld to satisfy employees' tax withholding and other liabilities (in shares) | 67,963 | 60,165 | |||
Shares withheld to satisfy employees' tax withholding and other liabilities, value | $ 10,543 | $ 10,514 | |||
Stock issued during period, shares, share-based compensation, forfeited (in shares) | 4,622 | ||||
Stock issued during period, value, share-based compensation, forfeited | $ 679 | 528 | |||
Dividends declared but not paid | $ 203,624 | $ 196,079 | 203,624 | 196,079 | $ 196,094 |
Change in redemption value of redeemable noncontrolling interest | (626) | ||||
Cash flow hedge losses reclassified to earnings | (1,466) | (1,767) | (4,679) | (5,301) | |
Increase (decrease) in prepaid expense and other assets | 1,422 | ||||
Increase in accrued expenses, other liabilities and accrued interest payable | 1,998 | ||||
Net operating real estate | $ 16,082,262 | $ 16,082,262 | $ 16,342,893 | ||
Avalon Maplewood [Member] | |||||
Supplemental disclosures of non-cash investing and financing activities | |||||
Net operating real estate | $ 16,361 | $ 16,361 | |||
Restricted Stock and Restricted Stock Converted From Performance Shares | |||||
Supplemental disclosures of non-cash investing and financing activities | |||||
Equity instruments granted (in shares) | 187,010 | 201,314 | |||
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) | 98,713 | 72,832 | |||
Fair value of shares issued | $ 15,950 | $ 13,079 | |||
Stock issued during period, shares, share-based compensation, forfeited (in shares) | 4,622 | 3,045 | |||
Accumulated earnings less dividends | |||||
Supplemental disclosures of non-cash investing and financing activities | |||||
Change in redemption value of redeemable noncontrolling interest | $ (626) | $ 458 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 September 30, 2018 , the Company owned or held a direct or indirect ownership interest in 271 operating apartment communities containing 78,383 apartment homes in 12 states and the District of Columbia, of which 15 communities containing 6,242 apartment homes were under redevelopment. In addition, the Company owned or held a direct or indirect ownership interest in 19 communities under development that are expected to contain an aggregate of 6,107 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 25 communities that, if developed as expected, will contain an estimated 8,600 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 and nine months ended September 30, 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 For the nine months ended 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Basic and diluted shares outstanding Weighted average common shares - basic 137,848,788 137,715,192 137,818,076 137,457,293 Weighted average DownREIT units outstanding 7,500 7,500 7,500 7,500 Effect of dilutive securities 466,776 584,354 405,148 541,399 Weighted average common shares - diluted 138,323,064 138,307,046 138,230,724 138,006,192 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 192,486 $ 238,248 $ 588,791 $ 639,348 Net income allocated to unvested restricted shares (555 ) (672 ) (1,722 ) (1,794 ) Net income attributable to common stockholders, adjusted $ 191,931 $ 237,576 $ 587,069 $ 637,554 Weighted average common shares - basic 137,848,788 137,715,192 137,818,076 137,457,293 Earnings per common share - basic $ 1.39 $ 1.73 $ 4.26 $ 4.64 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 192,486 $ 238,248 $ 588,791 $ 639,348 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 11 11 33 32 Adjusted net income attributable to common stockholders $ 192,497 $ 238,259 $ 588,824 $ 639,380 Weighted average common shares - diluted 138,323,064 138,307,046 138,230,724 138,006,192 Earnings per common share - diluted $ 1.39 $ 1.72 $ 4.26 $ 4.63 All options to purchase shares of common stock outstanding as of September 30, 2018 and 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 interest expense, net. 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 and the Company is completing its reconstruction. 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. With regard to the building that was destroyed, three class action lawsuits have been filed against the Company 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 35 of these claims and it is expected that the evaluation of the remaining claims should be completed within the next two months . In addition to the class action lawsuits described above, the Company has resolved litigated claims with approximately 60 units. There is currently one remaining resident lawsuit with respect to the destroyed building filed in the Superior Court of New Jersey, Bergen County - Law Division; the Company believes it has meritorious defenses to the extent of damages claimed in that suit. A number of subrogation lawsuits had been filed against the Company by insurers of Edgewater residents who obtained renters insurance; these lawsuits have been or are expected to be resolved in 2018. A fourth class action, being heard in the same federal court, was filed against the Company on behalf of a purported class of residents of the second Edgewater building that suffered minimal damage. Having settled many third party claims as described above, 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 and updates about the casualty gains and losses and lawsuits associated with the Edgewater casualty loss through the date this Form 10-Q is filed. 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, disposition activity and segment classification. 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 and nine months ended September 30, 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 September 30, 2018 , or otherwise qualify as held for sale as of September 30, 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 September 30, 2018 Management, development and other fees $ — $ — $ — $ 912 $ 912 Rental and non-rental related income (2) 2,695 1,751 512 — 4,958 Total non-lease revenue (3) 2,695 1,751 512 912 5,870 Lease income (4) 424,328 64,791 76,987 — 566,106 Total revenue $ 427,023 $ 66,542 $ 77,499 $ 912 $ 571,976 For the period ended September 30, 2017 Management, development and other fees $ — $ — $ — $ 993 $ 993 Rental and non-rental related income (2) 2,667 1,734 450 — 4,851 Total non-lease revenue (3) 2,667 1,734 450 993 5,844 Lease income (4) 414,663 51,151 59,067 — 524,881 Business interruption insurance proceeds (5) — — 3,495 — 3,495 Total revenue $ 417,330 $ 52,885 $ 63,012 $ 993 $ 534,220 For the nine months ended Established Other Development/ Non- Total For the period ended September 30, 2018 Management, development and other fees $ — $ — $ — $ 2,752 $ 2,752 Rental and non-rental related income (2) 7,823 4,940 1,439 — 14,202 Total non-lease revenue (3) 7,823 4,940 1,439 2,752 16,954 Lease income (4) 1,258,243 190,094 215,977 — 1,664,314 Total revenue $ 1,266,066 $ 195,034 $ 217,416 $ 2,752 $ 1,681,268 For the period ended September 30, 2017 Management, development and other fees $ — $ — $ — $ 3,290 $ 3,290 Rental and non-rental related income (2) 7,798 4,778 1,095 — 13,671 Total non-lease revenue (3) 7,798 4,778 1,095 3,290 16,961 Lease income (4) 1,228,410 132,961 166,707 — 1,528,078 Business interruption insurance proceeds (5) — — 3,495 — 3,495 Total revenue $ 1,236,208 $ 137,739 $ 171,297 $ 3,290 $ 1,548,534 __________________________________ (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. (5) Amounts for the three and nine months ended September 30, 2017 are composed of business interruption insurance proceeds resulting from the final insurance settlement of the Maplewood casualty loss. 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 September 30, 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 electing to not (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 and ASU 2018-11 which provides further transition relief by providing (i) an option to not evaluate land easements that exist or have expired prior to the date of adoption under ASC 842, (ii) prospective adoption as a transition method and (iii) a practical expedient for lessors to not separate lease and non-lease components by class of underlying asset when certain conditions are met. The Company plans to adopt ASC 842 on January 1, 2019 using the prospective adoption method, and plans to apply certain practical expedients allowed under the standard including: • not reassessing (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, and (iii) the accounting for initial direct costs for any existing leases; • not evaluating short term leases; • not assessing whether existing land easements are, or contain leases; and • making an accounting policy election by class of underlying asset, to not separate non-lease components from lease components and instead to account for each separate lease and non- lease component as a single lease component. 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 until adoption in 2019. 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 used in investing activities) and (iii) repayments of mortgage notes payable, including prepayment penalties (cash used in financing activities), located on the Condensed 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 nine months ended September 30, 2017 (dollars in thousands): 9/30/2017 (as previously reported) Impact of ASU 2016-18 9/30/2017 (as adjusted and currently reported) Net cash provided by operating activities $ 917,573 $ 16,205 $ 933,778 Net cash used in investing activities (676,231 ) 51,479 (624,752 ) Net cash used in financing activities (420,294 ) (1,598 ) (421,892 ) Net (decrease) increase in cash, cash equivalents (178,952 ) 178,952 — Net increase in cash, cash equivalents and restricted cash — (112,866 ) (112,866 ) 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 $ 36,042 — — Cash, cash equivalents and restricted cash, end of period $ 181,069 $ 217,111 |
Interest Capitalized
Interest Capitalized | 9 Months Ended |
Sep. 30, 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 $16,277,000 and $16,223,000 for the three months ended September 30, 2018 and 2017 , respectively, and $44,008,000 and $51,323,000 for the nine months ended September 30, 2018 and 2017 , respectively. |
Mortgage Notes Payable, Unsecur
Mortgage Notes Payable, Unsecured Notes and Credit Facility | 9 Months Ended |
Sep. 30, 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 September 30, 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 September 30, 2018 and December 31, 2017 , as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, "Real Estate Disposition Activities"). 9/30/2018 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) 534,629 593,987 Variable rate mortgage notes payable - conventional and tax-exempt (2) 813,163 910,326 Total mortgage notes payable, unsecured notes and Term Loans 7,547,792 7,404,313 Credit Facility 56,000 — Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility $ 7,603,792 $ 7,404,313 _____________________________________ (1) Balances at September 30, 2018 and December 31, 2017 exclude $10,293 and $10,850 , respectively, of debt discount, and $35,762 and $36,386 , respectively, of deferred financing costs, as reflected in unsecured notes, net on the accompanying Condensed Consolidated Balance Sheets. (2) Balances at September 30, 2018 and December 31, 2017 exclude $14,618 and $16,351 , respectively, of debt discount, and $9,891 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 nine months ended September 30, 2018 : • In February 2018, the Company repaid $15,174,000 principal amount of 6.60% 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 principal amount of 4.61% 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 is 4.39% . • In April 2018, the Company repaid $13,380,000 principal amount of 3.06% fixed rate debt secured by Avalon Andover at par at its scheduled maturity date. • In June 2018, the Company repaid $15,295,000 principal amount of 6.90% fixed rate debt secured by Avalon Orchards in advance of its scheduled maturity date, incurring a charge of $635,000 , consisting of a prepayment penalty of $282,000 and the non-cash write-off of unamortized deferred financing costs of $353,000 . • In August 2018, the Company repaid $95,859,000 aggregate principal amount of variable rate debt secured by Avalon Calabasas, of which $51,449,000 was repaid at par at its scheduled maturity date, and $44,410,000 was repaid at par in advance of its April 2028 maturity date. The Company recognized a non-cash charge of $1,678,000 for the write-off of unamortized debt discount. At September 30, 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 ( 3.08% at September 30, 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 $56,000,000 outstanding under the Credit Facility as of September 30, 2018 and no borrowings outstanding under the Credit Facility as of December 31, 2017 . The Company had $39,760,000 and $47,315,000 outstanding in letters of credit that reduced the borrowing capacity as of September 30, 2018 and December 31, 2017 , respectively. In the aggregate, secured notes payable mature at various dates from April 2019 through July 2066, and are secured by certain apartment communities (with a net carrying value of $2,073,747,000 , excluding communities classified as held for sale, as of September 30, 2018 ). As of September 30, 2018 , the Company has guaranteed a wholly-owned subsidiary's $100,000,000 secured note payable that 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 3.8% and 4.0% at September 30, 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 3.4% and 3.2% at September 30, 2018 and December 31, 2017 , respectively. Scheduled payments and maturities of secured notes payable and unsecured notes outstanding at September 30, 2018 are as follows (dollars in thousands): Year Secured notes payments Secured notes maturities Unsecured notes maturities Stated interest rate of unsecured notes 2018 1,638 — — N/A 2019 3,824 114,722 — N/A 2020 2,682 140,430 250,000 6.100 % 400,000 3.625 % 2021 2,549 27,844 250,000 3.950 % 300,000 LIBOR + 0.43% 2022 2,723 — 450,000 2.950 % 100,000 LIBOR + .90% 2023 2,899 — 350,000 4.200 % 250,000 2.850 % 2024 3,077 — 300,000 3.500 % 150,000 LIBOR + 1.50% 2025 3,268 84,835 525,000 3.450 % 300,000 3.500 % 2026 3,485 — 475,000 2.950 % 300,000 2.900 % 2027 2,974 185,100 400,000 3.350 % Thereafter 127,593 638,149 350,000 3.900 % 300,000 4.150 % 450,000 3.200 % 300,000 4.350 % $ 156,712 $ 1,191,080 $ 6,200,000 The Company was in compliance at September 30, 2018 with customary financial and other covenants under the Credit Facility, the Term Loans and the Company's fixed rate unsecured notes. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity The following summarizes the changes in equity for the nine months ended September 30, 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 — — 588,791 — 588,791 Gain on cash flow hedges, net — — — 11,499 11,499 Cash flow hedge losses reclassified to earnings — — — 4,679 4,679 Change in redemption value of redeemable noncontrolling interest — — (626 ) — (626 ) Dividends declared to common stockholders — — (609,972 ) — (609,972 ) Issuance of common stock, net of withholdings 1 (11,217 ) 1,144 — (10,072 ) Amortization of deferred compensation — 25,053 — — 25,053 Balance at September 30, 2018 $ 1,382 $ 10,249,311 $ 167,946 $ (21,241 ) $ 10,397,398 As of September 30, 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 nine months ended September 30, 2018 , the Company: i. issued 5,263 shares of common stock in connection with stock options exercised; ii. issued 1,713 common shares through the Company's dividend reinvestment plan; iii. issued 187,010 common shares in connection with restricted stock grants and the conversion of performance awards to restricted shares; iv. withheld 67,963 common shares to satisfy employees' tax withholding and other liabilities; v. issued 6,613 common shares through the Employee Stock Purchase Plan; and vi. canceled 4,622 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 nine months ended September 30, 2018 is not reflected on the accompanying Condensed Consolidated Balance Sheets as of September 30, 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 September 30, 2018 , there are no outstanding forward sales agreements. During the three and nine months ended September 30, 2018 , the Company had no sales under the program. As of September 30, 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 | 9 Months Ended |
Sep. 30, 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 September 30, 2018 , the Company had investments in six unconsolidated real estate entities with ownership interest percentages ranging from 20.0% to 55.0% , excluding 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 nine months ended September 30, 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. During the three and nine months ended September 30, 2018 , Archstone Multifamily Partners AC LP (the "U.S. Fund") sold Avalon Kirkland at Carillon, located in Kirkland, WA, containing 131 apartment homes, for $85,500,000 . The Company's share of the gain was $8,636,000 . In conjunction with the disposition of this community, during the three and nine months ended September 30, 2018 , the U.S. Fund repaid $27,928,000 of secured indebtedness in advance of its scheduled maturity date. This resulted in a charge for a prepayment penalty and the write-off of deferred financing costs, of which the Company's portion was $89,000 , which is reported as a reduction of equity in income (loss) 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): 9/30/2018 12/31/2017 (unaudited) (unaudited) Assets: Real estate, net $ 731,006 $ 695,077 Other assets 90,712 39,976 Total assets $ 821,718 $ 735,053 Liabilities and partners' capital: Mortgage notes payable, net and credit facility $ 492,965 $ 523,815 Other liabilities 16,583 10,540 Partners' capital 312,170 200,698 Total liabilities and partners' capital $ 821,718 $ 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 For the nine months ended 9/30/2018 9/30/2017 9/30/2018 9/30/2017 (unaudited) (unaudited) Rental and other income $ 24,535 $ 24,568 $ 68,324 $ 79,999 Operating and other expenses (8,749 ) (9,378 ) (26,066 ) (30,386 ) Gain on sale of communities 30,597 107,067 30,597 136,514 Interest expense, net (5,938 ) (7,867 ) (17,130 ) (21,415 ) Depreciation expense (6,288 ) (5,938 ) (18,704 ) (20,059 ) Net income $ 34,157 $ 108,452 $ 37,021 $ 144,653 In conjunction with the acquisition of the "U.S. Fund", Multifamily Partners AC JV LP (the "AC JV") and Brandywine Apartments of Maryland, LLC ("Brandywine"), the Company incurred costs in excess of its equity in the underlying net assets of the respective investments. These costs represent $34,225,000 and $35,402,000 at September 30, 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. Investments in Consolidated Real Estate Entities In September 2018, the Company acquired Avalon Arundel Crossing, a consolidated community, located in Linthicum Heights, MD. Avalon Arundel Crossing contains 310 apartment homes and was acquired for a purchase price of $83,000,000 . The Company accounted for this as an asset acquisition and recorded the acquired assets and assumed liabilities, including identifiable intangibles, at their relative fair values based on the purchase price and acquisition costs incurred. The Company used third party pricing or internal models for the values of the land, a valuation model for the values of the buildings, and an internal model to determine the fair values of the remaining real estate assets and in-place leases. Given the heterogeneous nature of multifamily real estate, the fair values for the land, debt, real estate assets and in-place leases incorporated significant unobservable inputs and therefore are considered to be Level 3 prices within the fair value hierarchy. 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 was 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 nine months ended September 30, 2018 . The Company has a receivable from the venture partner in the form of a variable rate mortgage note, secured by the remaining for-sale residential condominium units. 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 balance as of September 30, 2018 was $14,001,000 , representing outstanding principal and interest, net of repayments, and as of December 31, 2017 , was $44,831,000 , representing outstanding principal and interest. These amounts are 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. The venture is considered a VIE, and the Company consolidates its interest in the rental apartments and common areas. Expensed Transaction, Development and Other Pursuit Costs and Casualty 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 and costs for pursuits where development is not yet considered probable, 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 $1,020,000 and $789,000 for the three months ended September 30, 2018 and 2017 , respectively, and $2,709,000 and $2,087,000 for the nine months ended September 30, 2018 and 2017 , respectively. These costs are included in expensed transaction, 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 and nine months ended September 30, 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 nine months ended September 30, 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. There were no impairment losses recognized on the Company's investment in land during the three and nine months ended September 30, 2018 . 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 and nine months ended September 30, 2018 and 2017 . Casualty Gains and Losses During the three months ended September 30, 2018 , the Company recognized a gain of $554,000 for legal settlement proceeds relating to construction defects at a community acquired as part of the Archstone acquisition, which is included in casualty and impairment (gain) loss, net on the accompanying Condensed Consolidated Statements of Comprehensive Income. During the nine months ended September 30, 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. The net casualty loss of $2,338,000 for the nine months ended September 30, 2017 is included in casualty and impairment (gain) loss, net on the accompanying Condensed Consolidated Statements of Comprehensive Income. During the three months ended September 30, 2017 , the Company reached a final insurance settlement for the property damage and lost income for the Maplewood casualty loss of $19,696,000 , after self-insurance and deductibles. Of this amount, the Company received $7,076,000 and $13,268,000 during the three and nine months ended September 30, 2017 , respectively. As part of the settlement, the Company recognized $3,495,000 as business interruption insurance proceeds for the three and nine months ended September 30, 2017 , which is recorded as a component of rental and other income on the accompanying Condensed Consolidated Statements of Comprehensive Income. |
Real Estate Disposition Activit
Real Estate Disposition Activities | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate Disposition Activities | Real Estate Disposition Activities The following real estate sales occurred during the nine months ended September 30, 2018 : • In May 2018, the Company sold Avalon Blue Hills and Avalon Canton at Blue Hills, located in Randolph, MA, and Canton, MA, respectively, containing an aggregate of 472 apartment homes for $131,250,000 . The Company's gain on disposition was $57,666,000 , reported in gain on sale of communities on the accompanying Condensed Consolidated Statements of Comprehensive Income. • In May 2018, the Company sold Eaves North Quincy, located in Quincy, MA, containing 224 apartment homes for $64,250,000 . The Company's gain on disposition was $18,055,000 , reported in gain on sale of communities on the accompanying Condensed Consolidated Statements of Comprehensive Income. • In June 2018, the Company sold Avalon Anaheim Stadium, located in Anaheim, CA, containing 251 apartment homes for $111,600,000 . The Company's gain on disposition was $29,490,000 , reported in gain on sale of communities on the accompanying Condensed Consolidated Statements of Comprehensive Income. • In August 2018, the Company sold Avalon Ballston Place, located in Arlington, VA, containing 383 apartment homes for $169,000,000 . The Company's gain on disposition was $27,215,000 , reported in gain on sale of communities on the accompanying Condensed Consolidated Statements of Comprehensive Income. The sale of Avalon Ballston Place was part of a tax deferred exchange, under which the Company had restricted $85,828,000 of the cash proceeds in an escrow account, classified as cash in escrow on the accompanying Condensed Consolidated Balance Sheets. At September 30, 2018 , the Company had three communities and one land parcel that qualified as held for sale. During 2016, the Company completed the construction of and sold an affordable restricted apartment building, containing 77 apartment homes. The Company received consideration for the sale in the form of a mortgage note secured by the underlying real estate. During the three months ended September 30, 2018 , the Company received a payment of $16,627,000 , of which $15,900,000 represents a repayment of substantially all of the outstanding principal, with the balance representing interest income on the note. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 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 transaction, development and other pursuit costs, net of recoveries, interest expense, net, loss on extinguishment of debt, net, general and administrative expense, equity in income of unconsolidated real estate entities, depreciation expense, corporate income tax expense, casualty and impairment (gain) loss, net, gain on sale of communities, gain on other real estate transactions, net 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 and nine months ended September 30, 2018 and 2017 is as follows (dollars in thousands): For the three months ended For the nine months ended 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Net income $ 192,407 $ 238,199 $ 588,540 $ 639,174 Indirect operating expenses, net of corporate income 18,855 15,752 55,850 48,472 Investments and investment management expense 1,726 1,501 4,898 4,277 Expensed transaction, development and other pursuit costs, net of recoveries 1,020 789 2,709 2,087 Interest expense, net 54,097 47,741 165,795 147,138 Loss on extinguishment of debt, net 1,678 — 2,717 24,162 General and administrative expense 13,905 11,655 42,013 38,808 Equity in income of unconsolidated real estate entities (10,031 ) (52,568 ) (12,560 ) (70,386 ) Depreciation expense 156,538 144,990 472,282 427,050 Income tax expense 29 24 87 102 Casualty and impairment (gain) loss, net (554 ) — (612 ) 11,688 Gain on sale of communities (27,243 ) (27,738 ) (132,444 ) (159,754 ) (Gain) loss on other real estate transactions, net (12 ) 120 (335 ) (246 ) Net operating income from real estate assets sold or held for sale (2,545 ) (10,340 ) (15,913 ) (35,162 ) Net operating income $ 399,870 $ 370,125 $ 1,173,027 $ 1,077,410 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 For the nine months ended 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Rental income from real estate assets sold or held for sale $ 4,006 $ 16,280 $ 24,747 $ 54,803 Operating expenses from real estate assets sold or held for sale (1,461 ) (5,940 ) (8,834 ) (19,641 ) Net operating income from real estate assets sold or held for sale $ 2,545 $ 10,340 $ 15,913 $ 35,162 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 January 1, 2018 . Segment information for the three and nine months ended September 30, 2018 and 2017 has been adjusted to exclude the real estate assets that were sold from January 1, 2017 through September 30, 2018 , or otherwise qualify as held for sale as of September 30, 2018 , as described in Note 6, "Real Estate Disposition Activities." For the three months ended For the nine months ended Total NOI Total NOI Gross real estate (1) For the period ended September 30, 2018 Established New England $ 60,690 $ 40,005 $ 178,841 $ 117,008 $ 2,006,671 Metro NY/NJ 106,341 74,562 315,683 219,396 3,729,612 Mid-Atlantic 59,752 41,432 177,342 123,056 2,223,386 Pacific Northwest 22,014 15,681 64,609 45,753 726,752 Northern California 92,292 70,465 274,206 209,866 2,983,019 Southern California 85,934 60,931 255,385 182,875 2,916,530 Total Established 427,023 303,076 1,266,066 897,954 14,585,970 Other Stabilized 66,542 45,196 195,034 132,498 2,740,944 Development / Redevelopment 77,499 51,598 217,416 142,575 4,895,487 Land Held for Development N/A N/A N/A N/A 116,582 Non-allocated (2) 912 N/A 2,752 N/A 96,876 Total $ 571,976 $ 399,870 $ 1,681,268 $ 1,173,027 $ 22,435,859 For the period ended September 30, 2017 Established New England $ 58,872 $ 38,635 $ 174,018 $ 113,423 $ 1,988,987 Metro NY/NJ 105,225 71,864 311,301 215,187 3,617,773 Mid-Atlantic 58,561 40,020 174,653 120,186 2,213,522 Pacific Northwest 21,531 15,692 62,833 45,632 723,674 Northern California 89,798 68,731 267,316 205,168 2,966,133 Southern California 83,343 59,013 246,087 177,326 2,901,525 Total Established 417,330 293,955 1,236,208 876,922 14,411,614 Other Stabilized 52,885 34,746 137,739 88,946 2,477,846 Development / Redevelopment (3) 63,012 41,424 171,297 111,542 3,847,578 Land Held for Development N/A N/A N/A N/A 85,863 Non-allocated (2) 993 N/A 3,290 N/A 93,778 Real estate disposed or held for sale (4) 629,970 Total $ 534,220 $ 370,125 $ 1,548,534 $ 1,077,410 $ 21,546,649 __________________________________ (1) Does not include gross real estate assets held for sale of $109,900 and $53,723 as of September 30, 2018 and 2017 , respectively. (2) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. (3) Total revenue and NOI for the three and nine months ended September 30, 2017 includes $3,495 in business interruption insurance proceeds related to the Maplewood casualty loss. (4) Represents real estate sold or held for sale during the period of September 30, 2017 to September 30, 2018 , which is not allocated to a reportable segment. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 9 Months Ended |
Sep. 30, 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. Details of the outstanding awards and activity are 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 nine months ended September 30, 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 (3,000 ) 130.23 (2,263 ) 48.60 Granted (1) 6,995 161.10 — — Forfeited — — — — Options Outstanding, September 30, 2018 153,968 $ 128.26 5,515 $ 48.60 Options Exercisable, September 30, 2018 146,973 $ 126.70 5,515 $ 48.60 __________________________________ (1) Options granted during the nine months ended September 30, 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) 100,965 155.31 Change in awards based on performance (2) 5,990 148.79 Converted to restricted stock or options (88,477 ) 148.79 Forfeited (2,309 ) 158.52 Outstanding at September 30, 2018 267,939 $ 157.23 __________________________________ (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 62,043 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 38,922 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 98,713 161.58 88,297 Vested - restricted stock shares (66,764 ) 171.31 (112,230 ) Forfeited (3,865 ) 166.70 (757 ) Outstanding at September 30, 2018 161,717 $ 166.32 209,238 Total employee stock-based compensation cost recognized in income was $15,189,000 and $13,245,000 for the nine months ended September 30, 2018 and 2017 , respectively, and total capitalized stock-based compensation cost was $8,391,000 and $7,644,000 for the nine months ended September 30, 2018 and 2017 , respectively. At September 30, 2018 , there was a total unrecognized compensation cost of $34,159,000 for unvested restricted stock and performance awards, and is expected to be recognized over a weighted average period of 2.7 years. |
Related Party Arrangements
Related Party Arrangements | 9 Months Ended |
Sep. 30, 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 $912,000 and $993,000 during the three months ended September 30, 2018 and 2017 , respectively, and $2,752,000 and $3,290,000 for the nine months ended September 30, 2018 and 2017 , respectively. In addition, the Company has outstanding receivables associated with its property and construction management role of $2,966,000 and $2,449,000 as of September 30, 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 $454,000 and $368,000 in the three months ended September 30, 2018 and 2017 , respectively, and $1,200,000 and $1,127,000 in the nine months ended September 30, 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 $928,000 and $525,000 on September 30, 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 | 9 Months Ended |
Sep. 30, 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 September 30, 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 September 30, 2018 (dollars in thousands): Non-designated Hedges Cash Flow Hedges Notional balance $ 589,470 $ 34,378 Weighted average interest rate (1) 3.3 % 4.8 % Weighted average swapped/capped interest rate 6.6 % 5.9 % Earliest maturity date Apr 2020 Apr 2019 Latest maturity date Sep 2022 Apr 2019 ____________________________________ (1) Represents the weighted average interest rate on the hedged debt. During the nine months ended September 30, 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 September 30, 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 10 derivatives not designated as hedges at September 30, 2018 . Fair value changes for derivatives not in qualifying hedge relationships for the three and nine months ended September 30, 2018 and 2017 were not material. During the nine months ended September 30, 2018 , the Company deferred $11,499,000 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 For the nine months ended 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Cash flow hedge losses reclassified to earnings $ 1,466 $ 1,767 $ 4,679 $ 5,301 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 September 30, 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 accounts designed to preserve principal. 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): 9/30/2018 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Non-Designated Hedges Interest Rate Caps $ 2 $ — $ 2 $ — Puts (3,245 ) — — (3,245 ) DownREIT units (1,359 ) (1,359 ) — — Indebtedness Unsecured notes (5,499,043 ) (5,499,043 ) — — Secured notes payable and variable rate unsecured indebtedness (1,699,182 ) — (1,699,182 ) — Total $ (7,202,827 ) $ (5,500,402 ) $ (1,699,180 ) $ (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 | 9 Months Ended |
Sep. 30, 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 October and November 2018, the Company: • entered into an agreement to contribute five wholly-owned operating communities located in New York, NY, to a newly formed joint venture. The Company will retain a 20.0% equity interest in the venture and act as the managing member and property manager for the assets. The Company will account for its investment in the joint venture under the equity method of accounting. The five communities contain an aggregate of 1,301 apartment homes, approximately 58,000 square feet of retail space and have an aggregate net real estate basis of $516,214,000 as of September 30, 2018 . The execution of this agreement resulted in the communities qualifying as held for sale subsequent to September 30, 2018 . The Company expects to complete the transaction in December 2018. • sold three wholly-owned operating communities, Avalon at Fairway Hills - Fields, a single phase of a three phase community located in Columbia, MD, Avalon Fashion Valley, located in San Diego, CA, and Avalon Andover, located in Andover, MA. In the aggregate, these three communities contain 468 apartment homes and were sold for $142,650,000 . • acquired two communities, Alexander Apartments and Lofts, located in West Palm Beach, FL, and Ironwood at Red Rocks, located in Littleton, CO. In the aggregate, these two communities contains 546 apartment homes and were acquired for a purchase price of $178,400,000 . In addition, in October 2018, the AC JV sold Avalon Woodland Park, located in Herndon, VA, containing 392 apartment homes for a sales price of $94,250,000 . As of November 2, 2018 , the Company has $175,000,000 outstanding under the Credit Facility. |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 September 30, 2018 , the Company owned or held a direct or indirect ownership interest in 271 operating apartment communities containing 78,383 apartment homes in 12 states and the District of Columbia, of which 15 communities containing 6,242 apartment homes were under redevelopment. In addition, the Company owned or held a direct or indirect ownership interest in 19 communities under development that are expected to contain an aggregate of 6,107 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 25 communities that, if developed as expected, will contain an estimated 8,600 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 and nine months ended September 30, 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 For the nine months ended 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Basic and diluted shares outstanding Weighted average common shares - basic 137,848,788 137,715,192 137,818,076 137,457,293 Weighted average DownREIT units outstanding 7,500 7,500 7,500 7,500 Effect of dilutive securities 466,776 584,354 405,148 541,399 Weighted average common shares - diluted 138,323,064 138,307,046 138,230,724 138,006,192 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 192,486 $ 238,248 $ 588,791 $ 639,348 Net income allocated to unvested restricted shares (555 ) (672 ) (1,722 ) (1,794 ) Net income attributable to common stockholders, adjusted $ 191,931 $ 237,576 $ 587,069 $ 637,554 Weighted average common shares - basic 137,848,788 137,715,192 137,818,076 137,457,293 Earnings per common share - basic $ 1.39 $ 1.73 $ 4.26 $ 4.64 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 192,486 $ 238,248 $ 588,791 $ 639,348 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 11 11 33 32 Adjusted net income attributable to common stockholders $ 192,497 $ 238,259 $ 588,824 $ 639,380 Weighted average common shares - diluted 138,323,064 138,307,046 138,230,724 138,006,192 Earnings per common share - diluted $ 1.39 $ 1.72 $ 4.26 $ 4.63 All options to purchase shares of common stock outstanding as of September 30, 2018 and 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 interest expense, net. 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 and the Company is completing its reconstruction. 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. With regard to the building that was destroyed, three class action lawsuits have been filed against the Company 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 35 of these claims and it is expected that the evaluation of the remaining claims should be completed within the next two months . In addition to the class action lawsuits described above, the Company has resolved litigated claims with approximately 60 units. There is currently one remaining resident lawsuit with respect to the destroyed building filed in the Superior Court of New Jersey, Bergen County - Law Division; the Company believes it has meritorious defenses to the extent of damages claimed in that suit. A number of subrogation lawsuits had been filed against the Company by insurers of Edgewater residents who obtained renters insurance; these lawsuits have been or are expected to be resolved in 2018. A fourth class action, being heard in the same federal court, was filed against the Company on behalf of a purported class of residents of the second Edgewater building that suffered minimal damage. Having settled many third party claims as described above, 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 and updates about the casualty gains and losses and lawsuits associated with the Edgewater casualty loss through the date this Form 10-Q is filed. 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, disposition activity and segment classification. |
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 electing to not (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 and ASU 2018-11 which provides further transition relief by providing (i) an option to not evaluate land easements that exist or have expired prior to the date of adoption under ASC 842, (ii) prospective adoption as a transition method and (iii) a practical expedient for lessors to not separate lease and non-lease components by class of underlying asset when certain conditions are met. The Company plans to adopt ASC 842 on January 1, 2019 using the prospective adoption method, and plans to apply certain practical expedients allowed under the standard including: • not reassessing (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, and (iii) the accounting for initial direct costs for any existing leases; • not evaluating short term leases; • not assessing whether existing land easements are, or contain leases; and • making an accounting policy election by class of underlying asset, to not separate non-lease components from lease components and instead to account for each separate lease and non- lease component as a single lease component. 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 until adoption in 2019. 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 used in investing activities) and (iii) repayments of mortgage notes payable, including prepayment penalties (cash used in financing activities), located on the Condensed 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 nine months ended September 30, 2017 (dollars in thousands): 9/30/2017 (as previously reported) Impact of ASU 2016-18 9/30/2017 (as adjusted and currently reported) Net cash provided by operating activities $ 917,573 $ 16,205 $ 933,778 Net cash used in investing activities (676,231 ) 51,479 (624,752 ) Net cash used in financing activities (420,294 ) (1,598 ) (421,892 ) Net (decrease) increase in cash, cash equivalents (178,952 ) 178,952 — Net increase in cash, cash equivalents and restricted cash — (112,866 ) (112,866 ) 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 $ 36,042 — — Cash, cash equivalents and restricted cash, end of period $ 181,069 $ 217,111 |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 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 For the nine months ended 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Basic and diluted shares outstanding Weighted average common shares - basic 137,848,788 137,715,192 137,818,076 137,457,293 Weighted average DownREIT units outstanding 7,500 7,500 7,500 7,500 Effect of dilutive securities 466,776 584,354 405,148 541,399 Weighted average common shares - diluted 138,323,064 138,307,046 138,230,724 138,006,192 Calculation of Earnings per Share - basic Net income attributable to common stockholders $ 192,486 $ 238,248 $ 588,791 $ 639,348 Net income allocated to unvested restricted shares (555 ) (672 ) (1,722 ) (1,794 ) Net income attributable to common stockholders, adjusted $ 191,931 $ 237,576 $ 587,069 $ 637,554 Weighted average common shares - basic 137,848,788 137,715,192 137,818,076 137,457,293 Earnings per common share - basic $ 1.39 $ 1.73 $ 4.26 $ 4.64 Calculation of Earnings per Share - diluted Net income attributable to common stockholders $ 192,486 $ 238,248 $ 588,791 $ 639,348 Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships 11 11 33 32 Adjusted net income attributable to common stockholders $ 192,497 $ 238,259 $ 588,824 $ 639,380 Weighted average common shares - diluted 138,323,064 138,307,046 138,230,724 138,006,192 Earnings per common share - diluted $ 1.39 $ 1.72 $ 4.26 $ 4.63 |
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 and nine months ended September 30, 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 September 30, 2018 , or otherwise qualify as held for sale as of September 30, 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 September 30, 2018 Management, development and other fees $ — $ — $ — $ 912 $ 912 Rental and non-rental related income (2) 2,695 1,751 512 — 4,958 Total non-lease revenue (3) 2,695 1,751 512 912 5,870 Lease income (4) 424,328 64,791 76,987 — 566,106 Total revenue $ 427,023 $ 66,542 $ 77,499 $ 912 $ 571,976 For the period ended September 30, 2017 Management, development and other fees $ — $ — $ — $ 993 $ 993 Rental and non-rental related income (2) 2,667 1,734 450 — 4,851 Total non-lease revenue (3) 2,667 1,734 450 993 5,844 Lease income (4) 414,663 51,151 59,067 — 524,881 Business interruption insurance proceeds (5) — — 3,495 — 3,495 Total revenue $ 417,330 $ 52,885 $ 63,012 $ 993 $ 534,220 For the nine months ended Established Other Development/ Non- Total For the period ended September 30, 2018 Management, development and other fees $ — $ — $ — $ 2,752 $ 2,752 Rental and non-rental related income (2) 7,823 4,940 1,439 — 14,202 Total non-lease revenue (3) 7,823 4,940 1,439 2,752 16,954 Lease income (4) 1,258,243 190,094 215,977 — 1,664,314 Total revenue $ 1,266,066 $ 195,034 $ 217,416 $ 2,752 $ 1,681,268 For the period ended September 30, 2017 Management, development and other fees $ — $ — $ — $ 3,290 $ 3,290 Rental and non-rental related income (2) 7,798 4,778 1,095 — 13,671 Total non-lease revenue (3) 7,798 4,778 1,095 3,290 16,961 Lease income (4) 1,228,410 132,961 166,707 — 1,528,078 Business interruption insurance proceeds (5) — — 3,495 — 3,495 Total revenue $ 1,236,208 $ 137,739 $ 171,297 $ 3,290 $ 1,548,534 __________________________________ (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. (5) Amounts for the three and nine months ended September 30, 2017 are composed of business interruption insurance proceeds resulting from the final insurance settlement of the Maplewood casualty loss. |
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 nine months ended September 30, 2017 (dollars in thousands): 9/30/2017 (as previously reported) Impact of ASU 2016-18 9/30/2017 (as adjusted and currently reported) Net cash provided by operating activities $ 917,573 $ 16,205 $ 933,778 Net cash used in investing activities (676,231 ) 51,479 (624,752 ) Net cash used in financing activities (420,294 ) (1,598 ) (421,892 ) Net (decrease) increase in cash, cash equivalents (178,952 ) 178,952 — Net increase in cash, cash equivalents and restricted cash — (112,866 ) (112,866 ) 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 $ 36,042 — — Cash, cash equivalents and restricted cash, end of period $ 181,069 $ 217,111 |
Mortgage Notes Payable, Unsec_2
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2018 and December 31, 2017 , as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, "Real Estate Disposition Activities"). 9/30/2018 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) 534,629 593,987 Variable rate mortgage notes payable - conventional and tax-exempt (2) 813,163 910,326 Total mortgage notes payable, unsecured notes and Term Loans 7,547,792 7,404,313 Credit Facility 56,000 — Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility $ 7,603,792 $ 7,404,313 _____________________________________ (1) Balances at September 30, 2018 and December 31, 2017 exclude $10,293 and $10,850 , respectively, of debt discount, and $35,762 and $36,386 , respectively, of deferred financing costs, as reflected in unsecured notes, net on the accompanying Condensed Consolidated Balance Sheets. (2) Balances at September 30, 2018 and December 31, 2017 exclude $14,618 and $16,351 , respectively, of debt discount, and $9,891 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 September 30, 2018 are as follows (dollars in thousands): Year Secured notes payments Secured notes maturities Unsecured notes maturities Stated interest rate of unsecured notes 2018 1,638 — — N/A 2019 3,824 114,722 — N/A 2020 2,682 140,430 250,000 6.100 % 400,000 3.625 % 2021 2,549 27,844 250,000 3.950 % 300,000 LIBOR + 0.43% 2022 2,723 — 450,000 2.950 % 100,000 LIBOR + .90% 2023 2,899 — 350,000 4.200 % 250,000 2.850 % 2024 3,077 — 300,000 3.500 % 150,000 LIBOR + 1.50% 2025 3,268 84,835 525,000 3.450 % 300,000 3.500 % 2026 3,485 — 475,000 2.950 % 300,000 2.900 % 2027 2,974 185,100 400,000 3.350 % Thereafter 127,593 638,149 350,000 3.900 % 300,000 4.150 % 450,000 3.200 % 300,000 4.350 % $ 156,712 $ 1,191,080 $ 6,200,000 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Summary of changes in equity | The following summarizes the changes in equity for the nine months ended September 30, 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 — — 588,791 — 588,791 Gain on cash flow hedges, net — — — 11,499 11,499 Cash flow hedge losses reclassified to earnings — — — 4,679 4,679 Change in redemption value of redeemable noncontrolling interest — — (626 ) — (626 ) Dividends declared to common stockholders — — (609,972 ) — (609,972 ) Issuance of common stock, net of withholdings 1 (11,217 ) 1,144 — (10,072 ) Amortization of deferred compensation — 25,053 — — 25,053 Balance at September 30, 2018 $ 1,382 $ 10,249,311 $ 167,946 $ (21,241 ) $ 10,397,398 |
Investments in Real Estate En_2
Investments in Real Estate Entities (Tables) | 9 Months Ended |
Sep. 30, 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): 9/30/2018 12/31/2017 (unaudited) (unaudited) Assets: Real estate, net $ 731,006 $ 695,077 Other assets 90,712 39,976 Total assets $ 821,718 $ 735,053 Liabilities and partners' capital: Mortgage notes payable, net and credit facility $ 492,965 $ 523,815 Other liabilities 16,583 10,540 Partners' capital 312,170 200,698 Total liabilities and partners' capital $ 821,718 $ 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 For the nine months ended 9/30/2018 9/30/2017 9/30/2018 9/30/2017 (unaudited) (unaudited) Rental and other income $ 24,535 $ 24,568 $ 68,324 $ 79,999 Operating and other expenses (8,749 ) (9,378 ) (26,066 ) (30,386 ) Gain on sale of communities 30,597 107,067 30,597 136,514 Interest expense, net (5,938 ) (7,867 ) (17,130 ) (21,415 ) Depreciation expense (6,288 ) (5,938 ) (18,704 ) (20,059 ) Net income $ 34,157 $ 108,452 $ 37,021 $ 144,653 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of reconciliation of NOI to net income | A reconciliation of NOI to net income for the three and nine months ended September 30, 2018 and 2017 is as follows (dollars in thousands): For the three months ended For the nine months ended 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Net income $ 192,407 $ 238,199 $ 588,540 $ 639,174 Indirect operating expenses, net of corporate income 18,855 15,752 55,850 48,472 Investments and investment management expense 1,726 1,501 4,898 4,277 Expensed transaction, development and other pursuit costs, net of recoveries 1,020 789 2,709 2,087 Interest expense, net 54,097 47,741 165,795 147,138 Loss on extinguishment of debt, net 1,678 — 2,717 24,162 General and administrative expense 13,905 11,655 42,013 38,808 Equity in income of unconsolidated real estate entities (10,031 ) (52,568 ) (12,560 ) (70,386 ) Depreciation expense 156,538 144,990 472,282 427,050 Income tax expense 29 24 87 102 Casualty and impairment (gain) loss, net (554 ) — (612 ) 11,688 Gain on sale of communities (27,243 ) (27,738 ) (132,444 ) (159,754 ) (Gain) loss on other real estate transactions, net (12 ) 120 (335 ) (246 ) Net operating income from real estate assets sold or held for sale (2,545 ) (10,340 ) (15,913 ) (35,162 ) Net operating income $ 399,870 $ 370,125 $ 1,173,027 $ 1,077,410 |
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 For the nine months ended 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Rental income from real estate assets sold or held for sale $ 4,006 $ 16,280 $ 24,747 $ 54,803 Operating expenses from real estate assets sold or held for sale (1,461 ) (5,940 ) (8,834 ) (19,641 ) Net operating income from real estate assets sold or held for sale $ 2,545 $ 10,340 $ 15,913 $ 35,162 |
Schedule of details of segment information | For the three months ended For the nine months ended Total NOI Total NOI Gross real estate (1) For the period ended September 30, 2018 Established New England $ 60,690 $ 40,005 $ 178,841 $ 117,008 $ 2,006,671 Metro NY/NJ 106,341 74,562 315,683 219,396 3,729,612 Mid-Atlantic 59,752 41,432 177,342 123,056 2,223,386 Pacific Northwest 22,014 15,681 64,609 45,753 726,752 Northern California 92,292 70,465 274,206 209,866 2,983,019 Southern California 85,934 60,931 255,385 182,875 2,916,530 Total Established 427,023 303,076 1,266,066 897,954 14,585,970 Other Stabilized 66,542 45,196 195,034 132,498 2,740,944 Development / Redevelopment 77,499 51,598 217,416 142,575 4,895,487 Land Held for Development N/A N/A N/A N/A 116,582 Non-allocated (2) 912 N/A 2,752 N/A 96,876 Total $ 571,976 $ 399,870 $ 1,681,268 $ 1,173,027 $ 22,435,859 For the period ended September 30, 2017 Established New England $ 58,872 $ 38,635 $ 174,018 $ 113,423 $ 1,988,987 Metro NY/NJ 105,225 71,864 311,301 215,187 3,617,773 Mid-Atlantic 58,561 40,020 174,653 120,186 2,213,522 Pacific Northwest 21,531 15,692 62,833 45,632 723,674 Northern California 89,798 68,731 267,316 205,168 2,966,133 Southern California 83,343 59,013 246,087 177,326 2,901,525 Total Established 417,330 293,955 1,236,208 876,922 14,411,614 Other Stabilized 52,885 34,746 137,739 88,946 2,477,846 Development / Redevelopment (3) 63,012 41,424 171,297 111,542 3,847,578 Land Held for Development N/A N/A N/A N/A 85,863 Non-allocated (2) 993 N/A 3,290 N/A 93,778 Real estate disposed or held for sale (4) 629,970 Total $ 534,220 $ 370,125 $ 1,548,534 $ 1,077,410 $ 21,546,649 __________________________________ (1) Does not include gross real estate assets held for sale of $109,900 and $53,723 as of September 30, 2018 and 2017 , respectively. (2) Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment. (3) Total revenue and NOI for the three and nine months ended September 30, 2017 includes $3,495 in business interruption insurance proceeds related to the Maplewood casualty loss. (4) Represents real estate sold or held for sale during the period of September 30, 2017 to September 30, 2018 , which is not allocated to a reportable segment. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 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 (3,000 ) 130.23 (2,263 ) 48.60 Granted (1) 6,995 161.10 — — Forfeited — — — — Options Outstanding, September 30, 2018 153,968 $ 128.26 5,515 $ 48.60 Options Exercisable, September 30, 2018 146,973 $ 126.70 5,515 $ 48.60 __________________________________ (1) Options granted during the nine months ended September 30, 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) 100,965 155.31 Change in awards based on performance (2) 5,990 148.79 Converted to restricted stock or options (88,477 ) 148.79 Forfeited (2,309 ) 158.52 Outstanding at September 30, 2018 267,939 $ 157.23 __________________________________ (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 62,043 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 38,922 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 98,713 161.58 88,297 Vested - restricted stock shares (66,764 ) 171.31 (112,230 ) Forfeited (3,865 ) 166.70 (757 ) Outstanding at September 30, 2018 161,717 $ 166.32 209,238 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2018 (dollars in thousands): Non-designated Hedges Cash Flow Hedges Notional balance $ 589,470 $ 34,378 Weighted average interest rate (1) 3.3 % 4.8 % Weighted average swapped/capped interest rate 6.6 % 5.9 % Earliest maturity date Apr 2020 Apr 2019 Latest maturity date Sep 2022 Apr 2019 ____________________________________ (1) 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 For the nine months ended 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Cash flow hedge losses reclassified to earnings $ 1,466 $ 1,767 $ 4,679 $ 5,301 |
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): 9/30/2018 Description Total Fair Value Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Non-Designated Hedges Interest Rate Caps $ 2 $ — $ 2 $ — Puts (3,245 ) — — (3,245 ) DownREIT units (1,359 ) (1,359 ) — — Indebtedness Unsecured notes (5,499,043 ) (5,499,043 ) — — Secured notes payable and variable rate unsecured indebtedness (1,699,182 ) — (1,699,182 ) — Total $ (7,202,827 ) $ (5,500,402 ) $ (1,699,180 ) $ (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 Presen_4
Organization, Basis of Presentation and Significant Accounting Policies (Details) | Sep. 30, 2018statecommunityhome |
Accounting Policies [Abstract] | |
Number of operating apartment communities | community | 271 |
Number of apartment homes included in operating apartment communities owned | home | 78,383 |
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 | 6,242 |
Number of owned communities under construction | community | 19 |
Expected number of apartment homes under construction | home | 6,107 |
Communities under development rights | community | 25 |
Estimated number of apartment homes in communities to be developed | home | 8,600 |
Organization, Basis of Presen_5
Organization, Basis of Presentation and Significant Accounting Policies (Details 2) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)communityhomebuilding$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2018USD ($)communityClaimhomebuilding$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | |
Basic and diluted shares outstanding | ||||
Weighted average common shares - basic (in shares) | shares | 137,848,788 | 137,715,192 | 137,818,076 | 137,457,293 |
Weighted average DownREIT units outstanding (in shares) | shares | 7,500 | 7,500 | 7,500 | 7,500 |
Effect of dilutive securities (in shares) | shares | 466,776 | 584,354 | 405,148 | 541,399 |
Weighted average common shares - diluted (in shares) | shares | 138,323,064 | 138,307,046 | 138,230,724 | 138,006,192 |
Calculation of Earnings per Share - basic | ||||
Net income attributable to common stockholders | $ | $ 192,486 | $ 238,248 | $ 588,791 | $ 639,348 |
Net income allocated to unvested restricted shares | $ | (555) | (672) | (1,722) | (1,794) |
Net income attributable to common stockholders, adjusted | $ | $ 191,931 | $ 237,576 | $ 587,069 | $ 637,554 |
Weighted average common shares - basic (in shares) | shares | 137,848,788 | 137,715,192 | 137,818,076 | 137,457,293 |
Earnings per common share - basic (in dollars per share) | $ / shares | $ 1.39 | $ 1.73 | $ 4.26 | $ 4.64 |
Calculation of Earnings per Share - diluted | ||||
Net income attributable to common stockholders | $ | $ 192,486 | $ 238,248 | $ 588,791 | $ 639,348 |
Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships | $ | 11 | 11 | 33 | 32 |
Adjusted net income attributable to common stockholders | $ | $ 192,497 | $ 238,259 | $ 588,824 | $ 639,380 |
Weighted average common shares - diluted (in shares) | shares | 138,323,064 | 138,307,046 | 138,230,724 | 138,006,192 |
Earnings per common share - diluted (in dollars per share) | $ / shares | $ 1.39 | $ 1.72 | $ 4.26 | $ 4.63 |
Loss Contingencies [Line Items] | ||||
Number of operating apartment communities | community | 271 | 271 | ||
Number of apartment homes included in operating apartment communities owned | home | 78,383 | 78,383 | ||
Avalon at Edgewater | ||||
Loss Contingencies [Line Items] | ||||
Number of operating apartment communities | building | 2 | 2 | ||
Number of operating apartment communities, uninhabitable | building | 1 | 1 | ||
Number of units in operating apartment communities, uninhabitable | home | 240 | 240 | ||
Number of apartment homes included in operating apartment communities owned | home | 168 | 168 | ||
Loss contingency, new class action claims filed number | Claim | 3 | |||
Loss contingency class action claims filed, number of apartments included in settlement | Claim | 66 | |||
Loss Contingency Class Action Claims Filed, Number of Apartments Included in Settlement Submitted | Claim | 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 | Claim | 35 | |||
Loss Contingency Class Action Claims Filed, Timing Remaining for Claim Evaluation | 2 months | |||
Loss Contingency Class Action Claims Filed, Number of Apartments in Settlement Previously Resolved | Claim | 60 | |||
Loss Contingency Subrogation Claims Filed Pending Not Dismissed Number | Claim | 1 | |||
Loss contingency, total class action claims filed number | Claim | 4 |
Organization, Basis of Presen_6
Organization, Basis of Presentation and Significant Accounting Policies (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Lease income | $ 575,070 | $ 549,507 | $ 1,703,263 | $ 1,600,047 |
Total revenue | 575,982 | 550,500 | 1,706,015 | 1,603,337 |
Management, development and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 912 | 993 | 2,752 | 3,290 |
Operating Segments | Established Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 427,023 | 417,330 | 1,266,066 | 1,236,208 |
Operating Segments | Other Stabilized Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 66,542 | 52,885 | 195,034 | 137,739 |
Non-allocated | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 912 | 993 | 2,752 | 3,290 |
Continuing Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 5,870 | 5,844 | 16,954 | 16,961 |
Lease income | 566,106 | 524,881 | 1,664,314 | 1,528,078 |
Gain on Business Interruption Insurance Recovery | 3,495 | 3,495 | ||
Total revenue | 571,976 | 534,220 | 1,681,268 | 1,548,534 |
Continuing Operations | Management, development and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 912 | 993 | 2,752 | 3,290 |
Continuing Operations | Rental and non-rental related income | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 4,958 | 4,851 | 14,202 | 13,671 |
Continuing Operations | Operating Segments | Established Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 2,695 | 2,667 | 7,823 | 7,798 |
Lease income | 424,328 | 414,663 | 1,258,243 | 1,228,410 |
Gain on Business Interruption Insurance Recovery | 0 | 0 | ||
Total revenue | 427,023 | 417,330 | 1,266,066 | 1,236,208 |
Continuing Operations | Operating Segments | Other Stabilized Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 1,751 | 1,734 | 4,940 | 4,778 |
Lease income | 64,791 | 51,151 | 190,094 | 132,961 |
Gain on Business Interruption Insurance Recovery | 0 | 0 | ||
Total revenue | 66,542 | 52,885 | 195,034 | 137,739 |
Continuing Operations | Operating Segments | Development/ Redevelopment Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 512 | 450 | 1,439 | 1,095 |
Lease income | 76,987 | 59,067 | 215,977 | 166,707 |
Gain on Business Interruption Insurance Recovery | 3,495 | 3,495 | ||
Total revenue | 77,499 | 63,012 | 217,416 | 171,297 |
Continuing Operations | Operating Segments | Management, development and other fees | Established Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 0 | 0 | 0 | 0 |
Continuing Operations | Operating Segments | Management, development and other fees | Other Stabilized Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 0 | 0 | 0 | 0 |
Continuing Operations | Operating Segments | Management, development and other fees | Development/ Redevelopment Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 0 | 0 | 0 | 0 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Established Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 2,695 | 2,667 | 7,823 | 7,798 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Other Stabilized Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 1,751 | 1,734 | 4,940 | 4,778 |
Continuing Operations | Operating Segments | Rental and non-rental related income | Development/ Redevelopment Communities | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 512 | 450 | 1,439 | 1,095 |
Continuing Operations | Non-allocated | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 912 | 993 | 2,752 | 3,290 |
Lease income | 0 | 0 | 0 | 0 |
Gain on Business Interruption Insurance Recovery | 0 | 0 | ||
Total revenue | 912 | 993 | 2,752 | 3,290 |
Continuing Operations | Non-allocated | Management, development and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | 912 | 993 | 2,752 | 3,290 |
Continuing Operations | Non-allocated | Rental and non-rental related income | ||||
Disaggregation of Revenue [Line Items] | ||||
Management, development and other fees | $ 0 | $ 0 | $ 0 | $ 0 |
Organization, Basis of Presen_7
Organization, Basis of Presentation and Significant Accounting Policies (Details 4) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by operating activities | $ 981,359 | $ 933,778 |
Net cash used in investing activities | (495,456) | (624,752) |
Net cash used in financing activities | (406,218) | (421,892) |
Net increase in cash, cash equivalents and restricted cash | 79,685 | (112,866) |
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 | 55,887 | 36,042 |
Cash and cash equivalents and restricted cash, end of period | $ 281,591 | 217,111 |
Impact of ASU 2016-18 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by operating activities | 16,205 | |
Net cash used in investing activities | 51,479 | |
Net cash used in financing activities | (1,598) | |
Net (decrease) increase in cash, cash equivalents | 178,952 | |
Net increase in cash, cash equivalents and restricted cash | (112,866) | |
Cash, cash equivalents, beginning of period | (214,994) | |
Cash and cash equivalents and restricted cash, end of period | 181,069 | |
Previously Reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by operating activities | 917,573 | |
Net cash used in investing activities | (676,231) | |
Net cash used in financing activities | (420,294) | |
Net (decrease) increase in cash, cash equivalents | (178,952) | |
Cash, cash equivalents, beginning of period | 214,994 | |
Cash, cash equivalents, end of period | $ 36,042 |
Interest Capitalized (Details)
Interest Capitalized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest Capitalized | ||||
Capitalized interest during the development and redevelopment of real estate assets | $ 16,277 | $ 16,223 | $ 44,008 | $ 51,323 |
Mortgage Notes Payable, Unsec_3
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Aug. 31, 2018 | Jun. 30, 2018 | Apr. 30, 2018 | Feb. 28, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Notes Payable, Unsecured Notes and Credit Facility | |||||||||
Total mortgage notes payable, unsecured notes and Term Loans | $ 7,547,792,000 | $ 7,547,792,000 | $ 7,404,313,000 | ||||||
Credit Facility | 56,000,000 | 56,000,000 | 0 | ||||||
Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility | 7,603,792,000 | 7,603,792,000 | 7,404,313,000 | ||||||
Gain (Loss) on Extinguishment of Debt | (1,678,000) | $ 0 | (2,717,000) | $ (24,162,000) | |||||
Unsecured notes | |||||||||
Notes Payable, Unsecured Notes and Credit Facility | |||||||||
Fixed rate notes | 5,650,000,000 | 5,650,000,000 | 5,350,000,000 | ||||||
Variable rate notes | 300,000,000 | 300,000,000 | 300,000,000 | ||||||
Total mortgage notes payable, unsecured notes and Term Loans | 6,200,000,000 | 6,200,000,000 | |||||||
Amount of debt discount | 10,293,000 | 10,293,000 | 10,850,000 | ||||||
Amount of deferred financing costs, net | 35,762,000 | 35,762,000 | 36,386,000 | ||||||
Term Loans | |||||||||
Notes Payable, Unsecured Notes and Credit Facility | |||||||||
Variable rate notes | 250,000,000 | 250,000,000 | 250,000,000 | ||||||
Secured notes | |||||||||
Notes Payable, Unsecured Notes and Credit Facility | |||||||||
Fixed rate notes | 534,629,000 | 534,629,000 | 593,987,000 | ||||||
Variable rate notes | 813,163,000 | 813,163,000 | 910,326,000 | ||||||
Total mortgage notes payable, unsecured notes and Term Loans | 1,191,080,000 | 1,191,080,000 | |||||||
Amount of debt discount | 14,618,000 | 14,618,000 | 16,351,000 | ||||||
Amount of deferred financing costs, net | 9,891,000 | 9,891,000 | 11,256,000 | ||||||
Notes Payable Maturities 2043 [Member] | Secured notes | |||||||||
Notes Payable, Unsecured Notes and Credit Facility | |||||||||
Repayments of secured mortgages | $ 15,174,000 | ||||||||
Gain (Loss) on Extinguishment of Debt | 426,000 | ||||||||
Prepayment penalty | 152,000 | ||||||||
Write off of deferred debt issuance cost | 274,000 | ||||||||
Notes Payable Maturities 2018 | Secured notes | |||||||||
Notes Payable, Unsecured Notes and Credit Facility | |||||||||
Total mortgage notes payable, unsecured notes and Term Loans | 0 | 0 | |||||||
Repayments of secured mortgages | $ 51,449,000 | $ 13,380,000 | $ 11,038,000 | ||||||
Notes Payable Maturities 2033 [Member] | Secured notes | |||||||||
Notes Payable, Unsecured Notes and Credit Facility | |||||||||
Repayments of secured mortgages | $ 15,295,000 | ||||||||
Gain (Loss) on Extinguishment of Debt | 635,000 | ||||||||
Prepayment penalty | 282,000 | ||||||||
Write off of deferred debt issuance cost | $ 353,000 | ||||||||
Notes Payable Maturities 2028 [Member] | Unsecured notes | |||||||||
Notes Payable, Unsecured Notes and Credit Facility | |||||||||
Total mortgage notes payable, unsecured notes and Term Loans | 450,000,000 | 450,000,000 | |||||||
Notes Payable Maturities 2028 [Member] | Secured notes | |||||||||
Notes Payable, Unsecured Notes and Credit Facility | |||||||||
Repayments of secured mortgages | 44,410,000 | ||||||||
Gain (Loss) on Extinguishment of Debt | 1,678,000 | ||||||||
Notes Payable Maturities 2018 and 2028 [Member] | Secured notes | |||||||||
Notes Payable, Unsecured Notes and Credit Facility | |||||||||
Repayments of secured mortgages | $ 95,859,000 | ||||||||
Line of Credit [Member] | |||||||||
Notes Payable, Unsecured Notes and Credit Facility | |||||||||
Credit Facility | $ 56,000,000 | $ 56,000,000 | $ 0 |
Mortgage Notes Payable, Unsec_4
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details 2) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Aug. 31, 2018 | Jun. 30, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Notes Payable, Unsecured Notes and Credit Facility | ||||||||||
Loss on extinguishment of debt, net | $ 1,678,000 | $ 0 | $ 2,717,000 | $ 24,162,000 | ||||||
Credit Facility | 56,000,000 | 56,000,000 | $ 0 | |||||||
Net carrying value of apartment communities and improved land parcels securing debt | 2,073,747,000 | 2,073,747,000 | ||||||||
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 | |||||||||
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% | |||||||||
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% | |||||||||
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 | 56,000,000 | 56,000,000 | 0 | |||||||
Outstanding balance of letters of credit | $ 39,760,000 | $ 39,760,000 | $ 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) | 3.08% | 3.08% | ||||||||
Notes Payable Maturities 2043 [Member] | Mortgage notes payable | ||||||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||||||
Repayments of secured mortgages | $ 15,174,000 | |||||||||
Stated interest rate of unsecured notes (as a percent) | 6.60% | |||||||||
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 | $ 51,449,000 | $ 13,380,000 | $ 11,038,000 | |||||||
Stated interest rate of unsecured notes (as a percent) | 3.06% | 4.61% | ||||||||
Notes Payable Maturities 2033 [Member] | Mortgage notes payable | ||||||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||||||
Repayments of secured mortgages | $ 15,295,000 | |||||||||
Stated interest rate of unsecured notes (as a percent) | 6.90% | |||||||||
Loss on extinguishment of debt, net | $ (635,000) | |||||||||
Prepayment penalty | 282,000 | |||||||||
Write off of deferred debt issuance cost | $ 353,000 | |||||||||
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% | |||||||||
Fixed Rate Mortgage Notes Payable [Member] | ||||||||||
Notes Payable, Unsecured Notes and Credit Facility | ||||||||||
Weighted average interest rate, debt (as a percent) | 3.80% | 3.80% | 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) | 3.40% | 3.40% | 3.20% |
Mortgage Notes Payable, Unsec_5
Mortgage Notes Payable, Unsecured Notes and Credit Facility (Details 3) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Apr. 30, 2018 | Feb. 28, 2018 | Dec. 31, 2017 | |
Notes Payable, Unsecured Notes and Credit Facility | ||||
Mortgage notes payable and unsecured notes | $ 7,547,792 | $ 7,404,313 | ||
Secured notes | ||||
Notes Payable, Unsecured Notes and Credit Facility | ||||
Secured notes payments | 156,712 | |||
Mortgage notes payable and unsecured notes | 1,191,080 | |||
Secured notes | Notes Payable Maturities 2018 | ||||
Notes Payable, Unsecured Notes and Credit Facility | ||||
Secured notes payments | 1,638 | |||
Mortgage notes payable and unsecured notes | 0 | |||
Stated interest rate of unsecured notes (as a percent) | 3.06% | 4.61% | ||
Secured notes | Notes Payable Maturities 2019 | ||||
Notes Payable, Unsecured Notes and Credit Facility | ||||
Secured notes payments | 3,824 | |||
Mortgage notes payable and unsecured notes | 114,722 | |||
Secured notes | Notes Payable Maturities 2020 | ||||
Notes Payable, Unsecured Notes and Credit Facility | ||||
Secured notes payments | 2,682 | |||
Mortgage notes payable and unsecured notes | 140,430 | |||
Secured notes | Notes Payable Maturities 2021 | ||||
Notes Payable, Unsecured Notes and Credit Facility | ||||
Secured notes payments | 2,549 | |||
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 | 2,723 | |||
Secured notes | Notes Payable Maturities 2023 | ||||
Notes Payable, Unsecured Notes and Credit Facility | ||||
Secured notes payments | 2,899 | |||
Secured notes | Notes Payable Maturities 2024 | ||||
Notes Payable, Unsecured Notes and Credit Facility | ||||
Secured notes payments | 3,077 | |||
Secured notes | Notes Payable Maturities 2025 | ||||
Notes Payable, Unsecured Notes and Credit Facility | ||||
Secured notes payments | 3,268 | |||
Mortgage notes payable and unsecured notes | 84,835 | |||
Secured notes | Notes Payable Maturities 2026 | ||||
Notes Payable, Unsecured Notes and Credit Facility | ||||
Secured notes payments | 3,485 | |||
Secured notes | Notes Payable Maturities 2027 | ||||
Notes Payable, Unsecured Notes and Credit Facility | ||||
Secured notes payments | 2,974 | |||
Mortgage notes payable and unsecured notes | 185,100 | |||
Secured notes | Notes Payable Maturities Thereafter | ||||
Notes Payable, Unsecured Notes and Credit Facility | ||||
Secured notes payments | 127,593 | |||
Mortgage notes payable and unsecured notes | 638,149 | |||
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Changes in equity | ||||
Beginning Balance | $ 10,388,046 | |||
Net income attributable to common stockholders | $ 192,486 | $ 238,248 | 588,791 | $ 639,348 |
(Loss) gain on cash flow hedges | 11,499 | |||
Cash flow hedge losses reclassified to earnings | 1,466 | $ 1,767 | 4,679 | 5,301 |
Change in redemption value of redeemable noncontrolling interest | (626) | |||
Dividends declared to common stockholders | (609,972) | |||
Issuance of common stock, net of withholdings | (10,072) | |||
Amortization of deferred compensation | 25,053 | |||
Ending Balance | 10,397,398 | 10,397,398 | ||
Common stock | ||||
Changes in equity | ||||
Beginning Balance | 1,381 | |||
Issuance of common stock, net of withholdings | 1 | |||
Ending Balance | 1,382 | 1,382 | ||
Additional paid-in capital | ||||
Changes in equity | ||||
Beginning Balance | 10,235,475 | |||
Issuance of common stock, net of withholdings | (11,217) | |||
Amortization of deferred compensation | 25,053 | |||
Ending Balance | 10,249,311 | 10,249,311 | ||
Accumulated earnings less dividends | ||||
Changes in equity | ||||
Beginning Balance | 188,609 | |||
Net income attributable to common stockholders | 588,791 | |||
Change in redemption value of redeemable noncontrolling interest | (626) | $ 458 | ||
Dividends declared to common stockholders | (609,972) | |||
Issuance of common stock, net of withholdings | 1,144 | |||
Ending Balance | 167,946 | 167,946 | ||
Accumulated other comprehensive loss | ||||
Changes in equity | ||||
Beginning Balance | (37,419) | |||
(Loss) gain on cash flow hedges | 11,499 | |||
Cash flow hedge losses reclassified to earnings | 4,679 | |||
Ending Balance | $ (21,241) | $ (21,241) | ||
Continuous Equity Program CEP IV | ||||
Class of Stock [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 0 | 0 |
Equity (Details 2)
Equity (Details 2) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 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 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 5,263 | ||
Common stock issued through the dividend reinvestment plan (in shares) | 1,713 | 2,466 | |
Number of shares of stock grants withheld (in shares) | 67,963 | 60,165 | |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 6,613 | ||
Stock issued during period, shares, share-based compensation, forfeited (in shares) | 4,622 | ||
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) | 187,010 | 201,314 |
Investments in Real Estate En_3
Investments in Real Estate Entities - Narrative of Investment in Real Estate Entities (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)entityhome | Sep. 30, 2018USD ($)entity | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)entityhome | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Equity method investment | ||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 30,597 | $ 107,067 | $ 30,597 | $ 136,514 | ||
Equity method investment, difference between carrying amount and underlying equity | $ 34,225 | 34,225 | 34,225 | $ 35,402 | ||
Payments to Acquire Other Real Estate | 84,088 | 228,011 | ||||
Gain (Loss) on Extinguishment of Debt | $ (1,678) | 0 | $ (2,717) | (24,162) | ||
Unconsolidated real estate entities | ||||||
Equity method investment | ||||||
Number of unconsolidated real estate entities | entity | 6 | 6 | 6 | |||
Avalon Bay Value Added Fund II LP | ||||||
Equity method investment | ||||||
Equity Method Investment, Ownership Percentage | 31.30% | 31.30% | 31.30% | |||
Percentage of right of distribution | 40.00% | 40.00% | 40.00% | |||
Percentage of right of remaining distribution | 60.00% | 60.00% | 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 | $ 14,001 | $ 14,001 | $ 14,001 | $ 44,831 | ||
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% | 20.00% | 20.00% | |||
Maximum [Member] | Unconsolidated real estate entities | ||||||
Equity method investment | ||||||
Equity Method Investment, Ownership Percentage | 55.00% | 55.00% | 55.00% | |||
Archstone Toscano [Member] | ||||||
Equity method investment | ||||||
Proceeds from Legal Settlements | $ (554) | |||||
Avalon Arundel Crossing [Member] | ||||||
Equity method investment | ||||||
Number of Apartment Homes Acquired | home | 310 | |||||
Payments to Acquire Other Real Estate | $ 83,000 | |||||
Avalon Kirkland at Carillon [Member] | US Fund [Member] | ||||||
Equity method investment | ||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 8,636 | |||||
Repayments of secured mortgages | 27,928 | |||||
Gain (Loss) on Extinguishment of Debt | $ 89 | |||||
Number of Apartment Homes Sold | home | 131 | |||||
Proceeds from sale of real estate | $ 85,500 | |||||
Avalon Maplewood [Member] | ||||||
Equity method investment | ||||||
Gain on Business Interruption Insurance Recovery | 3,495 | 3,495 | ||||
Insurance Recoveries | $ 19,696 | $ 17,143 |
Investments in Real Estate En_4
Investments in Real Estate Entities - Financial Position and Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Assets: | |||||
Real estate, net | $ 731,006 | $ 731,006 | $ 695,077 | ||
Other assets | 90,712 | 90,712 | 39,976 | ||
Total assets | 821,718 | 821,718 | 735,053 | ||
Liabilities and partners' capital: | |||||
Mortgage notes payable and credit facility | 492,965 | 492,965 | 523,815 | ||
Other liabilities | 16,583 | 16,583 | 10,540 | ||
Partners' capital | 312,170 | 312,170 | 200,698 | ||
Total liabilities and partners' capital | 821,718 | 821,718 | $ 735,053 | ||
Combined summary of the operating results of the accounted for using the equity method | |||||
Rental and other income | 24,535 | $ 24,568 | 68,324 | $ 79,999 | |
Operating and other expenses | (8,749) | (9,378) | (26,066) | (30,386) | |
Gain on sale of communities | 30,597 | 107,067 | 30,597 | 136,514 | |
Interest expense, net | (5,938) | (7,867) | (17,130) | (21,415) | |
Depreciation expense | (6,288) | (5,938) | (18,704) | (20,059) | |
Net income | $ 34,157 | $ 108,452 | $ 37,021 | $ 144,653 |
Investments in Real Estate En_5
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 | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Equity method investment | |||||
Expensed transaction, development and other pursuit costs, net of recoveries | $ 1,020 | $ 789 | $ 2,709 | $ 2,087 | |
Impairment of investment in unconsolidated entities | 0 | 0 | 0 | 0 | |
Casualty and impairment (gain) loss, net | (554) | 0 | (612) | 11,688 | |
Net operating real estate | 16,082,262 | 16,082,262 | $ 16,342,893 | ||
Insurance proceeds for property damage claims | 58 | 13,268 | |||
Land Parcel [Member] | |||||
Equity method investment | |||||
Casualty and impairment (gain) loss, net | $ 0 | 0 | $ 0 | 9,350 | |
Avalon Maplewood [Member] | |||||
Equity method investment | |||||
Casualty and impairment (gain) loss, net | 2,338 | ||||
Casualty Loss | 19,481 | ||||
Net operating real estate | 16,361 | 16,361 | |||
Other nonrecurring expense | 3,120 | ||||
Insurance Recoveries | 19,696 | 17,143 | |||
Insurance proceeds for property damage claims | $ 7,076 | $ 13,268 |
Real Estate Disposition Activ_2
Real Estate Disposition Activities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)communityland_parcel | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)communityhomeland_parcel | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Summary of income from discontinued operations | |||||
Gain on sale of communities | $ 27,243 | $ 27,738 | $ 132,444 | $ 159,754 | |
Cash in escrow | $ 225,704 | $ 181,069 | $ 225,704 | 181,069 | $ 134,818 |
Number of communities held for sale | community | 3 | 3 | |||
Number of land parcels held for sale | land_parcel | 1 | 1 | |||
Mortgage note receivable payments | $ 50,929 | $ 0 | |||
Avalon at Blue Hills and Avalon Canton at Blue Hills [Member] | |||||
Summary of income from discontinued operations | |||||
Number of Apartment Homes Sold | home | 472 | ||||
Proceeds from sale of real estate | $ 131,250 | ||||
Gain on sale of communities | $ 57,666 | ||||
Eaves North Quincy [Member] | |||||
Summary of income from discontinued operations | |||||
Number of Apartment Homes Sold | home | 224 | ||||
Proceeds from sale of real estate | $ 64,250 | ||||
Gain on sale of communities | $ 18,055 | ||||
Avalon Anaheim Stadium [Member] | |||||
Summary of income from discontinued operations | |||||
Number of Apartment Homes Sold | home | 251 | ||||
Proceeds from sale of real estate | $ 111,600 | ||||
Gain on sale of communities | $ 29,490 | ||||
Avalon Ballston Place [Member] | |||||
Summary of income from discontinued operations | |||||
Number of Apartment Homes Sold | home | 383 | ||||
Proceeds from sale of real estate | $ 169,000 | ||||
Gain on sale of communities | 27,215 | ||||
Cash in escrow | $ 85,828 | $ 85,828 | |||
West Hollywood Affordable [Member] | |||||
Summary of income from discontinued operations | |||||
Number of Apartment Homes Sold | home | 77 | ||||
Mortgage note receivable payments, including interest | 16,627 | ||||
Mortgage note receivable payments | $ 15,900 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation of NOI to net income | ||||
Net income | $ 192,407 | $ 238,199 | $ 588,540 | $ 639,174 |
Indirect operating expenses, net of corporate income | 18,855 | 15,752 | 55,850 | 48,472 |
Investments and investment management expense | 1,726 | 1,501 | 4,898 | 4,277 |
Expensed transaction, development and other pursuit costs, net of recoveries | 1,020 | 789 | 2,709 | 2,087 |
Interest expense, net | 54,097 | 47,741 | 165,795 | 147,138 |
Loss on extinguishment of debt, net | 1,678 | 0 | 2,717 | 24,162 |
General and administrative expense | 13,905 | 11,655 | 42,013 | 38,808 |
Equity in income of unconsolidated real estate entities | (10,031) | (52,568) | (12,560) | (70,386) |
Depreciation expense | 156,538 | 144,990 | 472,282 | 427,050 |
Income tax expense | 29 | 24 | 87 | 102 |
Casualty and impairment (gain) loss, net | (554) | 0 | (612) | 11,688 |
Gain on sale of communities | (27,243) | (27,738) | (132,444) | (159,754) |
(Gain) loss on other real estate transactions, net | (12) | 120 | (335) | (246) |
Net operating income from real estate assets sold or held for sale | (2,545) | (10,340) | (15,913) | (35,162) |
Net operating income | $ 399,870 | 370,125 | $ 1,173,027 | 1,077,410 |
Avalon Maplewood [Member] | ||||
Business Interruption Loss [Line Items] | ||||
Gain on Business Interruption Insurance Recovery | $ 3,495 | 3,495 | ||
Reconciliation of NOI to net income | ||||
Casualty and impairment (gain) loss, net | $ 2,338 |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting [Abstract] | ||||
Rental income from real estate assets sold or held for sale | $ 4,006 | $ 16,280 | $ 24,747 | $ 54,803 |
Operating expenses from real estate assets sold or held for sale | (1,461) | (5,940) | (8,834) | (19,641) |
Net operating income from real estate assets sold or held for sale | $ 2,545 | $ 10,340 | $ 15,913 | $ 35,162 |
Segment Reporting (Details 3)
Segment Reporting (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting | ||||
Total revenue | $ 575,982 | $ 550,500 | $ 1,706,015 | $ 1,603,337 |
NOI | 399,870 | 370,125 | 1,173,027 | 1,077,410 |
Gross real estate | 22,435,859 | 21,546,649 | 22,435,859 | 21,546,649 |
Gross real estate assets held for sale | 109,900 | 53,723 | 109,900 | 53,723 |
Operating Segments | Established | ||||
Segment Reporting | ||||
Total revenue | 427,023 | 417,330 | 1,266,066 | 1,236,208 |
NOI | 303,076 | 293,955 | 897,954 | 876,922 |
Gross real estate | 14,585,970 | 14,411,614 | 14,585,970 | 14,411,614 |
Operating Segments | Established | New England | ||||
Segment Reporting | ||||
Total revenue | 60,690 | 58,872 | 178,841 | 174,018 |
NOI | 40,005 | 38,635 | 117,008 | 113,423 |
Gross real estate | 2,006,671 | 1,988,987 | 2,006,671 | 1,988,987 |
Operating Segments | Established | Metro NY/NJ | ||||
Segment Reporting | ||||
Total revenue | 106,341 | 105,225 | 315,683 | 311,301 |
NOI | 74,562 | 71,864 | 219,396 | 215,187 |
Gross real estate | 3,729,612 | 3,617,773 | 3,729,612 | 3,617,773 |
Operating Segments | Established | Mid-Atlantic | ||||
Segment Reporting | ||||
Total revenue | 59,752 | 58,561 | 177,342 | 174,653 |
NOI | 41,432 | 40,020 | 123,056 | 120,186 |
Gross real estate | 2,223,386 | 2,213,522 | 2,223,386 | 2,213,522 |
Operating Segments | Established | Pacific Northwest | ||||
Segment Reporting | ||||
Total revenue | 22,014 | 21,531 | 64,609 | 62,833 |
NOI | 15,681 | 15,692 | 45,753 | 45,632 |
Gross real estate | 726,752 | 723,674 | 726,752 | 723,674 |
Operating Segments | Established | Northern California | ||||
Segment Reporting | ||||
Total revenue | 92,292 | 89,798 | 274,206 | 267,316 |
NOI | 70,465 | 68,731 | 209,866 | 205,168 |
Gross real estate | 2,983,019 | 2,966,133 | 2,983,019 | 2,966,133 |
Operating Segments | Established | Southern California | ||||
Segment Reporting | ||||
Total revenue | 85,934 | 83,343 | 255,385 | 246,087 |
NOI | 60,931 | 59,013 | 182,875 | 177,326 |
Gross real estate | 2,916,530 | 2,901,525 | 2,916,530 | 2,901,525 |
Operating Segments | Other Stabilized | ||||
Segment Reporting | ||||
Total revenue | 66,542 | 52,885 | 195,034 | 137,739 |
NOI | 45,196 | 34,746 | 132,498 | 88,946 |
Gross real estate | 2,740,944 | 2,477,846 | 2,740,944 | 2,477,846 |
Operating Segments | Development / Redevelopment | ||||
Segment Reporting | ||||
Total revenue | 77,499 | 63,012 | 217,416 | 171,297 |
NOI | 51,598 | 41,424 | 142,575 | 111,542 |
Gross real estate | 4,895,487 | 3,847,578 | 4,895,487 | 3,847,578 |
Operating Segments | Disposals [Member] | ||||
Segment Reporting | ||||
Gross real estate | 629,970 | 629,970 | ||
Land Held for Future Development | ||||
Segment Reporting | ||||
Gross real estate | 116,582 | 85,863 | 116,582 | 85,863 |
Non-allocated | ||||
Segment Reporting | ||||
Total revenue | 912 | 993 | 2,752 | 3,290 |
Gross real estate | 96,876 | 93,778 | 96,876 | 93,778 |
Continuing Operations | ||||
Segment Reporting | ||||
Gain on Business Interruption Insurance Recovery | 3,495 | 3,495 | ||
Total revenue | 571,976 | 534,220 | 1,681,268 | 1,548,534 |
Continuing Operations | Operating Segments | Established | ||||
Segment Reporting | ||||
Gain on Business Interruption Insurance Recovery | 0 | 0 | ||
Total revenue | 427,023 | 417,330 | 1,266,066 | 1,236,208 |
Continuing Operations | Operating Segments | Other Stabilized | ||||
Segment Reporting | ||||
Gain on Business Interruption Insurance Recovery | 0 | 0 | ||
Total revenue | 66,542 | 52,885 | 195,034 | 137,739 |
Continuing Operations | Non-allocated | ||||
Segment Reporting | ||||
Gain on Business Interruption Insurance Recovery | 0 | 0 | ||
Total revenue | $ 912 | 993 | $ 2,752 | 3,290 |
Avalon Maplewood [Member] | ||||
Segment Reporting | ||||
Gain on Business Interruption Insurance Recovery | $ 3,495 | $ 3,495 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Shares | |
Exercised (in shares) | (5,263) |
2009 Plan | Employee and Directors Stock Options | |
Stock-Based Compensation Plans | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 146,973 |
Shares | |
Options outstanding at the beginning of the period (in shares) | 149,973 |
Exercised (in shares) | (3,000) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 6,995 |
Forfeited (in shares) | 0 |
Options outstanding at the end of the period (in shares) | 153,968 |
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 | 130.23 |
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 | 128.26 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 126.70 |
1994 Plan | Employee and Directors Stock Options | |
Stock-Based Compensation Plans | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 5,515 |
Shares | |
Options outstanding at the beginning of the period (in shares) | 7,778 |
Exercised (in shares) | (2,263) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 |
Forfeited (in shares) | 0 |
Options outstanding at the end of the period (in shares) | 5,515 |
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 | 48.60 |
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 Plan_3
Stock-Based Compensation Plans (Details 2) - Performance Shares | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Performance awards | |
Equity instruments outstanding at the beginning of the period (in shares) | 251,770 |
Equity instruments granted (in shares) | 100,965 |
Change in awards based on performance (in shares) | 5,990 |
Converted to restricted stock (in shares) | (88,477) |
Forfeited (in shares) | (2,309) |
Equity instruments outstanding at the end of the period (in shares) | 267,939 |
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 | 158.52 |
Equity instruments outstanding at the end of the period (in dollars per share) | $ / shares | $ 157.23 |
Grants in period based on total shareholder metrics | 62,043 |
Grants in period based on financial metrics | 38,922 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans Stock-Based Compensation Plans (Details 3) - Performance Shares | 9 Months Ended |
Sep. 30, 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 Plan_5
Stock-Based Compensation Plans Stock-Based Compensation Plans (Details 4) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Restricted stock | ||
Restricted stock shares | ||
Equity instruments outstanding at the beginning of the period (in shares) | 133,633 | |
Equity instruments granted (in shares) | 98,713 | 72,832 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | (66,764) | |
Forfeited (in shares) | (3,865) | |
Equity instruments outstanding at the end of the period (in shares) | 161,717 | |
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) | 161.58 | |
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) | 171.31 | |
Forfeited (in dollars per share) | 166.70 | |
Equity instruments outstanding at the end of the period (in dollars per share) | $ 166.32 | |
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) | (112,230) | |
Forfeited (in shares) | (757) | |
Equity instruments outstanding at the end of the period (in shares) | 209,238 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans (Details 5) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Additional disclosures | ||
Stock-based compensation expense | $ 15,189 | $ 13,245 |
Capitalized stock-based compensation cost | $ 8,391 | $ 7,644 |
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 | $ 34,159 | |
Weighted average period for recognition of unrecognized compensation cost | 2 years 8 months 12 days |
Related Party Arrangements (Det
Related Party Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Arrangements | |||||
Compensation expense | $ 15,189 | $ 13,245 | |||
Unconsolidated real estate entities | |||||
Related Party Arrangements | |||||
Outstanding receivables | $ 2,966 | 2,966 | $ 2,449 | ||
Non Employee Director | Restricted stock and deferred stock awards | |||||
Related Party Arrangements | |||||
Compensation expense | 454 | $ 368 | 1,200 | $ 1,127 | |
Amount of deferred compensation | $ 928 | $ 928 | $ 525 |
Fair Value (Details)
Fair Value (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)derivative | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)venturederivative | Sep. 30, 2017USD ($) | |
Derivative instruments and Hedging Activities | ||||
Derivative, notional amounts settled during period | $ 300,000 | |||
Receipts (payments) for termination of forward interest rate swaps | $ (12,598) | $ (391) | ||
Amortization period of deferred gain (loss) on discontinuation of interest rate fair value hedge | 10 years | |||
(Loss) gain on cash flow hedges | $ 11,499 | |||
Gain (loss) on cash flow hedges | $ 0 | $ 359 | $ 11,499 | $ (15,654) |
Cash Flow Hedges | ||||
Derivative instruments and Hedging Activities | ||||
Number of derivative instruments held | derivative | 1 | 1 | ||
Interest Rate Cap | Cash Flow Hedges | ||||
Derivative instruments and Hedging Activities | ||||
Notional amount | $ 34,378 | $ 34,378 | ||
Interest Rate Swap | Cash Flow Hedges | ||||
Derivative instruments and Hedging Activities | ||||
Notional amount | $ 0 | $ 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 | 10 | 10 | ||
Not Designated as Hedging Instrument | Interest Rate Cap | ||||
Derivative instruments and Hedging Activities | ||||
Notional amount | $ 589,470 | $ 589,470 | ||
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 | Sep. 30, 2018USD ($) |
Not Designated as Hedging Instrument | Interest Rate Cap | |
Derivative instruments and Hedging Activities | |
Notional amount | $ 589,470 |
Derivative weighted average interest rate | 3.30% |
Derivative, average cap interest rate | 6.60% |
Cash Flow Hedges | Interest Rate Cap | |
Derivative instruments and Hedging Activities | |
Notional amount | $ 34,378 |
Derivative weighted average interest rate | 4.80% |
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | ||||
Cash flow hedge losses reclassified to earnings | $ (1,466) | $ (1,767) | $ (4,679) | $ (5,301) |
Fair Value (Details 4)
Fair Value (Details 4) - Recurring basis - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Estimate of Fair Value Measurement | ||
Financial Instruments Measured/Discussed at Fair Value | ||
DownREIT units | $ (1,359) | $ (1,338) |
Total | (7,202,827) | (7,299,937) |
Estimate of Fair Value Measurement | Unsecured notes | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (5,499,043) | (5,446,604) |
Estimate of Fair Value Measurement | Secured Debt and Variable Rate Unsecured Indebtedness | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (1,699,182) | (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 | 2 | 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 | (1,359) | (1,338) |
Total | (5,500,402) | (5,447,942) |
Fair Value, Inputs, Level 1 | Unsecured notes | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (5,499,043) | (5,446,604) |
Fair Value, Inputs, Level 2 | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Total | (1,699,180) | (1,848,750) |
Fair Value, Inputs, Level 2 | Secured Debt and Variable Rate Unsecured Indebtedness | ||
Financial Instruments Measured/Discussed at Fair Value | ||
Indebtedness | (1,699,182) | (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 | 2 | 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) ft² in Thousands | 1 Months Ended | 9 Months Ended | ||||||
Nov. 02, 2018USD ($)communityhomephaseft² | Oct. 31, 2018USD ($)home | Aug. 31, 2018USD ($) | Apr. 30, 2018USD ($) | Feb. 28, 2018USD ($) | Sep. 30, 2018USD ($)community | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Subsequent Event [Line Items] | ||||||||
Number of communities held for sale | community | 3 | |||||||
Real Estate Investments, Net | $ 17,930,213,000 | $ 17,717,557,000 | ||||||
Credit Facility | 56,000,000 | 0 | ||||||
Payments to Acquire Other Real Estate | 84,088,000 | $ 228,011,000 | ||||||
Line of Credit [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Credit Facility | $ 56,000,000 | $ 0 | ||||||
Line of Credit [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Credit Facility | $ 175,000,000 | |||||||
Secured notes | Notes Payable Maturities 2018 | ||||||||
Subsequent Event [Line Items] | ||||||||
Repayments of secured mortgages | $ 51,449,000 | $ 13,380,000 | $ 11,038,000 | |||||
Avalon at Fairway Hills [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of Phases in a Community Sold | phase | 3 | |||||||
Subsequent Event Acquisitions [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of Communities Acquired | community | 2 | |||||||
Number of Apartment Homes Acquired | home | 546 | |||||||
Payments to Acquire Other Real Estate | $ 178,400,000 | |||||||
NYC JV [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 20.00% | |||||||
Avalon at Fairway Hills - Fields [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of Sold Phases in a Community Sold | phase | 1 | |||||||
NY Joint Venture [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of communities held for sale | community | 5 | |||||||
Number of Apartment Homes Held for Sale | home | 1,301 | |||||||
Retail Square Feet Held for Sale | ft² | 58 | |||||||
Real Estate Investments, Net | $ 516,214,000 | |||||||
Avalon Woodland Park [Member] | AC JV [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of Apartment Homes Sold | home | 392 | |||||||
Proceeds from sale of real estate | $ 94,250,000 | |||||||
Subsequent Event Dispositions [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of Communities Sold | community | 3 | |||||||
Number of Apartment Homes Sold | home | 468 | |||||||
Proceeds from sale of real estate | $ 142,650,000 |