AvalonBay Communities (AVB) 10-Q 10 Aug 09 2009 Q2 Quarterly report Financial data

1000 - CONDENSED CONSOLIDATED B

1000 - CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands	Jun. 30, 2009	Dec. 31, 2008
Real estate:
Land	$1,212,534	$1,151,456
Buildings and improvements	5,874,700	5,569,034
Furniture, fixtures and equipment	183,640	175,480
Total real estate assets	7,270,874	6,895,970
Less accumulated depreciation	(1,458,917)	(1,352,744)
Net operating real estate	5,811,957	5,543,226
Construction in progress, including land	783,934	867,061
Land held for development	225,634	239,456
Total real estate, net	6,821,525	6,649,743
Cash and cash equivalents	215,788	65,706
Cash in escrow	240,276	193,599
Resident security deposits	27,859	29,935
Investments in unconsolidated real estate entities	65,094	55,025
Deferred financing costs, net	34,602	31,374
Deferred development costs	74,764	57,365
Prepaid expenses and other assets	94,410	91,606
Total assets	7,574,318	7,174,353
LIABILITIES AND STOCKHOLDERS' EQUITY
Unsecured notes, net	1,795,590	2,002,965
Variable rate unsecured credit facility	0	124,000
Mortgage notes payable	2,354,298	1,547,492
Dividends payable	71,346	208,209
Payables for construction	55,263	64,363
Accrued expenses and other liabilities	226,577	227,721
Accrued interest payable	34,377	32,651
Resident security deposits	39,436	40,603
Total liabilities	4,576,887	4,248,004
Redeemable noncontrolling interests	6,722	10,234
Stockholders' equity:
Common stock, $0.01 par value; 140,000,000 shares authorized at both June 30, 2009 and December 31, 2008; 79,931,385 and 77,119,963 shares issued and outstanding at June 30, 2009 and December 31, 2008, respectively	799	771
Additional paid-in capital	3,087,770	2,940,499
Accumulated earnings less dividends	(95,725)	(22,223)
Accumulated other comprehensive loss	(2,135)	(2,932)
Total stockholders' equity	2,990,709	2,916,115
Total liabilities and stockholders' equity	$7,574,318	$7,174,353

1050 - PARANTHETICAL DATA TO TH

1050 - PARANTHETICAL DATA TO THE CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
	Jun. 30, 2009	Dec. 31, 2008
Stockholders' equity:
Common stock, par value	0.01	0.01
Common stock, shares authorized	140,000,000	140,000,000
Common stock, shares issued	79,931,385	77,119,963

2000 - CONDENSED CONSOLIDATED S

2000 - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (USD $)
In Thousands, except Per Share data	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Revenue:
Rental and other income	$220,067	$209,612	$438,278	$412,146
Management, development and other fees	2,077	1,579	3,545	3,217
Total revenue	222,144	211,191	441,823	415,363
Expenses:
Operating expenses, excluding property taxes	68,368	61,145	133,527	120,898
Property taxes	20,731	19,018	42,474	38,015
Interest expense, net	37,385	29,598	66,631	57,258
Depreciation expense	53,737	47,648	106,377	93,589
General and administrative expense	5,390	9,383	12,637	17,503
Impairment loss - land holdings	20,302	0	20,302	0
Total expenses	205,913	166,792	381,948	327,263
Equity in income of unconsolidated entities	492	3,800	3,949	3,833
Income from continuing operations	16,723	48,199	63,824	91,933
Discontinued operations:
Income from discontinued operations	0	5,101	0	9,921
Gain on sale of communities	0	74,139	0	74,139
Total discontinued operations	0	79,240	0	84,060
Net income	16,723	127,439	63,824	175,993
Net loss (income) attributable to redeemable noncontrolling interests	951	(105)	1,275	(210)
Net income attributable to the Company	17,674	127,334	65,099	175,783
Dividends attributable to preferred stock	0	(2,175)	0	(4,350)
Net income attributable to common stockholders	17,674	125,159	65,099	171,433
Other comprehensive income:
Unrealized gain on cash flow hedges	421	774	797	538
Comprehensive income	$18,095	$125,933	$65,896	$171,971
Earnings per common share - basic:
Income from continuing operations attributable to common stockholders (net of dividends attributable to preferred stock)	0.22	0.6	0.82	1.14
Discontinued operations attributable to common stockholders	$0	1.03	$0	1.09
Net income attributable to common stockholders	0.22	1.63	0.82	2.23
Earnings per common share - diluted:
Income from continuing operations attributable to common stockholders, net of preferred stock dividends	0.22	0.59	0.82	1.13
Discontinued operations attributable to common stockholders	$0	1.02	$0	1.08
Net income attributable to common stockholders	0.22	1.61	0.82	2.21

3000 - CONDENSED CONSOLIDATED S

3000 - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Cash flows from operating activities:
Net income	$63,824	$175,993
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation expense	106,377	93,589
Depreciation expense from discontinued operations	0	4,553
Amortization of deferred financing costs and debt premium/discount	3,598	2,650
Amortization of stock-based compensation	3,638	6,936
Equity in income of unconsolidated entities, net of eliminations	(4,288)	(3,246)
Impairment loss - land holdings	20,302	0
Gain on retirement of unsecured notes	(1,062)	0
Gain on sale of real estate assets	0	(74,139)
Increase in cash in operating escrows	(775)	(8,120)
Decrease (increase) in resident security deposits, prepaid expenses and other assets	(5,843)	(16,145)
Increase (decrease) in accrued expenses, other liabilities and accrued interest payable	3,957	(42,946)
Net cash provided by operating activities	189,728	139,125
Cash flows from investing activities:
Development/redevelopment of real estate assets including land acquisitions and deferred development costs	(311,577)	(419,079)
Capital expenditures - existing real estate assets	(1,708)	(1,659)
Capital expenditures - non-real estate assets	(383)	(2,280)
Proceeds from sale of real estate communities, net of selling costs	0	148,660
Decrease in payables for construction	(9,100)	(15,895)
Decrease in cash in construction escrows	47,413	89,402
Increase in investments in unconsolidated real estate entities	(702)	(1,900)
Net cash used in investing activities	(276,057)	(202,751)
Cash flows from financing activities:
Issuance of common stock	1,114	3,470
Repurchase of common stock	0	(42,159)
Dividends paid	(139,928)	(138,620)
Net repayments under unsecured credit facility	(124,000)	(514,500)
Issuance of mortgage notes payable and draws on construction loans	741,140	525,297
Repayments of mortgage notes payable	(27,774)	(47,295)
Issuance of unsecured notes	0	330,000
Repayment of unsecured notes	(206,173)	(60,000)
Payment of deferred financing costs	(7,727)	(5,294)
Redemption of units for cash by minority partners	(202)	0
Distributions to DownREIT partnership unitholders	(39)	(114)
Distributions to joint venture and profit-sharing partners	0	(96)
Net cash provided by financing activities	236,411	50,689
Net increase (decrease) in cash and cash equivalents	150,082	(12,937)
Cash and cash equivalents, beginning of period	65,706	20,284
Cash and cash equivalents, end of period	215,788	7,347
Cash paid during the period for interest, net of amount capitalized	$57,402	$53,609

6000 - Organization and Signifi

6000 - Organization and Significant Accounting Policies
	3 Months Ended Jun. 30, 2009 USD / shares
Organization and Significant Accounting Policies
Organization and Significant Accounting Policies	1.Organization and Significant Accounting Policies Organization AvalonBay Communities, Inc. (the Company, which term, unless the context otherwise requires, refers to AvalonBay Communities, Inc. together with its consolidated subsidiaries), is a Maryland corporation that has elected to be taxed as a real estate investment trust (REIT) under the Internal Revenue Code of 1986 (the Code), as amended. The Company focuses on the development, acquisition, ownership and operation of apartment communities in high barrier to entry markets of the United States. These markets are located in the New England, Metro New York/New Jersey, Mid-Atlantic, Midwest, Pacific Northwest, and Northern and Southern California regions of the country. At June 30, 2009, the Company owned or held a direct or indirect ownership interest in 162 operating apartment communities containing 46,476 apartment homes in ten states and the District of Columbia, of which seven communities containing 2,577 apartment homes were under reconstruction.In addition, the Company owned or helda direct or indirect ownership interest in 12 communities under construction that are expected to contain an aggregate of 4,035 apartment homes when completed.The Company also owned or held a direct or indirect ownership interest in rights to develop an additional 26 communities that, if developed as expected, will contain an estimated 6,688 apartment homes. During the three months ended June 30, 2009: The Company completed the redevelopment of two communities: Essex Place, located in Peabody, Massachusetts and Avalon Mountain View, located in Mountain View, California.These two communities contain an aggregate of 534 apartment homes and were redeveloped for a total capitalized cost of approximately $18,600, excluding costs incurred prior to redevelopment. The Company commenced the redevelopment of two communities: Avalon Pleasanton, located in Pleasanton, California and Avalon Watch, located in West Windsor, New Jersey.These two communities contain an aggregate of 968 apartment homes and will be redeveloped for an estimated total capitalized cost of $38,300, excluding costs incurred prior toredevelopment. The Company completed a 5.86% fixed rate, pooled secured financing transaction for aggregate borrowing of $741,140.The financing consists of fourteen separate mortgage loans each with a 10-year term. Each loan provides for payment of interest only during the first and second years of the loan term, with payment of principal and interest (based on a 30 year amortization schedule) thereafter and the remaining principal amount and any unpaid interest due at maturity on the tenth anniversary. The Company announced the second and final closing of AvalonBay Value Added Fund II, LP (Fund II).In this closing, a new institutional investor was admitted and the Company reduced its net investment and equity interest, resulting in total equity commitments to Fund II increasing by $67,000. Fund II acquired one community, see Note 6, Investments in Real Estate Entities. The interim unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting princi

6010 - Interest Capitalized

6010 - Interest Capitalized
	6 Months Ended Jun. 30, 2009 USD / shares
Interest Capitalized
Interest Capitalized	2.Interest Capitalized The Company capitalizes interest during the development and redevelopment of real estate assets in accordance with SFAS No. 34, Capitalization of Interest Cost.Capitalized interest associated with communities under development or redevelopment totaled $13,677 and $19,159 for the three months ended June 30, 2009and 2008, respectively and $26,045 and $38,822 for the six months ended June 30, 2009 and 2008, respectively.

6020 - Notes Payable, Unsecure

6020 - Notes Payable, Unsecured Notes and Credit Facility
	6 Months Ended Jun. 30, 2009 USD / shares
Notes Payable, Unsecured Notes and Credit Facility
Notes Payable, Unsecured Notes and Credit Facility	3.Notes Payable, Unsecured Notes and Credit Facility The Companys mortgage notes payable, unsecured notes and variable rate unsecured credit facility as of June 30, 2009 and December 31, 2008 are summarized below. 6-30-09 12-31-08 Fixed rate unsecured notes(1) $ 1,571,190 $ 1,672,965 Variable rate unsecured notes 224,400 330,000 Fixed rate mortgage notes payable - conventional and tax-exempt 1,635,410 901,181 Variable rate mortgage notes payable - conventional and tax-exempt 718,888 646,311 Total notes payable and unsecured notes 4,149,888 3,550,457 Variable rate unsecured credit facility -- 124,000 Total mortgage notes payable, unsecured notes and unsecured credit facility $ 4,149,888 $ 3,674,457 (1) Balances at June 30, 2009 and December 31, 2008 include $1,950 and $2,035 of debt discount, respectively. The following debt activity occurred during the six months ended June 30, 2009: In January 2009, the Company made a cash tender offer for any and all of its 7.5% medium-term notes due in August 2009 and December 2010. The Company purchased $37,438 principal amount of its $150,000, 7.5% medium-term notes due in August 2009 at par. In addition, the Company purchased $64,423 principal amount of its $200,000, 7.5% medium-term notes dueDecember 2010 at 98% of par, for approximately $63,135, representing a yield to maturity of 8.66%. The Company recorded a gain of approximately $1,062 net of the write-off of related deferred financing costs during the first quarter of 2009 in conjunction with the purchase of the medium-term notes due December 2010 as a reduction in interest expense, net. All of the notes purchased in the tender offer were cancelled. The Company had previously acquired and cancelled an aggregate of $10,000 of the 7.5% medium-term notes due in August 2009. In April 2009, the Company completed a 5.86% fixed rate, pooled secured financing transaction for aggregate borrowing of $741,140.The financing consists of fourteen separate mortgage loans each with a 10-year term. Each loan provides for payment of interest only during the first and second years of the loan term, with payment of principal andinterest (based on a 30 year amortization schedule) thereafter and the remaining principal amount and any unpaid interest due at maturity on the tenth anniversary. In April 2009, the Company repaid the $4,143 principal, 8.08% fixed rate loan secured by a real estate asset formerly classified as a Development Right in Alexandria, Virginia pursuant to its scheduled maturity. In May 2009, the Company repaid $19,470 in variable rate debt secured by Avalon at Flanders Hill, located in Westborough, Massachusetts. In May 2009, the Company repaid $105,600 in unsecured debt, representing the first tranche of its $330,000 unsecured variable rate term loan, pursuant to its scheduled maturity. In May 2009, the Company obtained $93,440 in variable rate tax-exempt bond financing related to a Development Right, the proceeds of which will be held in escrow until requisitioned for construction fun

6030 - Stockholders' Equity

6030 - Stockholders' Equity
	1/1/2009 - 6/30/2009 USD / shares
Stockholders' Equity
Stockholders' Equity	4.Stockholders Equity The following summarizes the changes in stockholders equity for the six months ended June 30, 2009: Accumulated Accumulated Additional earnings other Total Common paid-in less comprehensive stockholders' stock capital dividends loss equity Balance at December 31, 2008 $ 771 $ 2,940,499 $ (22,223 ) $ (2,932 ) $ 2,916,115 Net income attributable to Company common stockholders -- -- 65,099 -- 65,099 Unrealized gain on cash flow hedges -- -- -- 797 797 Redeemable noncontrolling interests -- -- 2,827 -- 2,827 Dividends declared to common stockholders -- -- (142,631 ) -- (142,631 ) Issuance of common stock 28 137,975 1,203 -- 139,206 Amortization of deferred compensation -- 9,296 -- -- 9,296 Balance at June 30, 2009 $ 799 $ 3,087,770 $ (95,725 ) $ (2,135 ) $ 2,990,709 During the six months ended June 30, 2009, the Company: (i) issued 42,950 shares of common stock in connection with stock options exercised; (ii) issued 2,624,641 shares in connection with the dividend declared in December 2008; (iii) issued 5,623 shares through the Companys dividend reinvestment plan; (iv) issued 169,851 common shares in connection with stock grants; (v) withheld 30,612 shares to satisfy employees tax withholding and other liabilities; and (vi) had 1,031 shares of restricted stock forfeited. In addition, the Company granted 344,801 options for common stock to employees.As required under SFAS No. 123(R), any deferred compensation related to the Companys stock option and restricted stock grants during the six months ended June 30, 2009 is not reflected on the Companys Condensed Consolidated Balance Sheetas of June 30, 2009, and will not be reflected until earned as compensation cost. The Company declared dividends per common share of $0.8925 and $1.785 for the three and six month periods ended June 30, 2008 and 2009.The Company also offers a Dividend Reinvestment and Stock Purchase Plan (the DRIP), which allows holders of the Companys common stock to purchase shares of common stock througheither reinvested dividends or optional cash payments.The purchase price per share for newly issued shares of common stock under the DRIP will be equal to the last reported sale price for a share of the Companys common stock as reported by the New York Stock Exchange (NYSE) on the applicable investment date.

6040 - Derivative Instruments a

6040 - Derivative Instruments and Hedging Activities
	6 Months Ended Jun. 30, 2009 USD / shares
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities	5.Derivative Instruments and Hedging Activities The Company enters into interest rate swap and interest rate cap agreements (collectively, the Hedging Derivatives) to reduce the impact of interest rate fluctuations on its variable rate, tax-exempt bonds and its variable rate conventional secured debt (collectively, the Hedged Debt).The Companyhas not entered into any interest rate hedge agreements for its conventional unsecured debt and does not enter into derivative transactions for trading or other speculative purposes.The following table summarizes the consolidated Hedging Derivatives at June 30, 2009, excluding derivatives executed to hedge debt on communities classified as held for sale: Non-designated Hedges Cash Flow Hedges Interest Interest Interest Rate Caps Rate Caps Rate Swaps Notional balance $ 149,847 $ 15,994 $ 44,199 Weighted average interest rate (1) 1.7 % 1.9 % 6.5 % Weighted average capped interest rate 7.0 % 6.0 % n/a Earliest maturity date Dec-09 Jun-12 Jun-10 Latest maturity date Mar-14 Jun-12 Jun-10 Estimated fair value, asset/(liability) $ 404 $ 35 $ (1,890 ) (1) For interest rate caps, this represents the weighted average interest rateon the debt. Excluding derivatives executed to hedge debt on communities classified as held for sale, the Company had three derivatives designated as cash flow hedges and six derivatives not designated as hedges at June 30, 2009. For the derivative positions that the Company has determined qualify as effective cash flow hedges under SFAS No. 133, the Company has recorded the effective portion of cumulative changes in the fair value of the Hedging Derivatives in other comprehensive income.Amounts recorded in other comprehensive income will be reclassified into earnings in the periods in which earnings are affected by the hedged cash flow.To adjust the Hedging Derivatives to their fair value and recognize the impact of hedge accounting, the Company recorded an increase in other comprehensive income of $797 during the six months endedJune 30, 2009 and an increase of $538 during the six months ended June 30, 2008.Amounts in other comprehensive income will be reclassified into earnings in conjunction with the periodic adjustment of the floating rates on the Hedged Debt, in interest expense, net.The amount reclassified into earnings for the six months ended June 30, 2009, as well as the estimated amount included in accumulated other comprehensive loss as of June 30, 2009, expected to be reclassified into earnings within the next twelve months to offset the variability of cash flows of the hedged items during this period are not material. The Company assesses both at inception and on an on-going basis, the effectiveness of qualifying cash flow hedges.Hedge ineffectiveness, reported as a component of general and administrative expenses, did not have a material impact on earnings of the Company for any period presented, and the Company does not anticipate that it will have a material effect in the future.The fair values of the Hedging Derivatives are included in

6050 - Investments in Real Esta

6050 - Investments in Real Estate Entities
	6 Months Ended Jun. 30, 2009 USD / shares
Investments in Real Estate Entities
Investments in Real Estate Entities	6.Investments in Real Estate Entities The Company accounts for its investments in unconsolidated real estate entities in accordance with the literature discussed in Note 1, Organization and Significant Accounting Policies, under Principles of Consolidation.During the six months ended June 30,2009, in conjunction with the second closing of Fund II, the Companys equity ownership interest decreased to 31% from 45%. There were no other changes in the Companys ownership interest in, or presentation of, its investments in unconsolidated real estate entities. As of June 30, 2009, the Company had investments in the following unconsolidated real estate entities: a 20% limited liability company membership interest (with a right to 50% of distributions after achievement of a threshold return, which was achieved in the first quarter of 2009) in the limited liability company that owns the Avalon Chrystie Place community; a 25% limited liability company membership interest (with a right to 45% of distributions after achievement of a threshold return) in the limited liability company that owns the Avalon at Mission Bay North II community; a 30% limited liability company membership interest (with a right to 45% or the residual distribution after the joint venture partners receive both a return of their initial investment and an achievement of a threshold return on that investment)in the limited liability company that owns theAvalon Del Rey community; a 50% limited liability company membership interest (with a right to 95% of distributions until the Company receives a return of our invested capital and a threshold return thereon) in the limited liability company that is developing for-sale town homes adjacent to the Companys Avalon Danvers community; a 15.2% combined general partner and indirect limited partner equity interest in the Fund (with the opportunity to receive as much as 20% of the Funds distributions in excess of return of capital, as an additional distribution, based on the achievement of certain threshold returns), which owns the following 19 communities: Avalon at Redondo Beach, Avalon Lakeside, Avalon Columbia, Avalon Sunset, Avalon at Poplar Creek, Avalon at Civic Center, Avalon Paseo Place, Avalon Yerba Buena, Avalon at Aberdeen Station, The Springs, Avalon Lombard, Avalon Cedar Place, Avalon Crystal Hill, Middlesex Crossing, Avalon Centerpoint, Skyway Terrace, Avalon Rutherford Station, South Hills Apartments and Weymouth Place; and a 31% combined general partner and indirect limited partner equity interest in Fund II (with the opportunity to receive as much as 20% of Fund IIs distributions in excess of return of capital, as an additional distribution, based on the achievement of certain threshold returns). During the three months ended June 30, 2009, Fund II acquired VeronaApartments located in Bellevue, WA for $33,100. Verona Apartments is a mid-rise style community containing 220 apartment homes. In addition, as part of the formation of the Fund and Fund II, the Company provided separate and distinct guarantees to one of the limited partners in each of the ventures.These guarantees are specific to the respecti

6060 - Real Estate Disposition

6060 - Real Estate Disposition Activities
	6 Months Ended Jun. 30, 2009 USD / shares
Real Estate Disposition Activities
Real Estate Disposition Activities	7.Real Estate Disposition Activities During the six months ended June 30, 2009, the Company did not sell any communities. As of June 30, 2009, the Company did not have any assets that qualified as discontinued operations and held for sale under the provisions of SFAS No. 144. In accordance with the requirements of SFAS No. 144, the operations for any real estate assets sold from January 1, 2008 through June 30, 2009 and the real estate assets that qualified as discontinued operations and held for sale as of June 30, 2009 have been presented as such in the accompanying Condensed Consolidated Financial Statements.Accordingly, certain reclassifications have been made in prior periods to reflect discontinued operations consistent with current period presentation. The following is a summary of income from discontinued operations for the periods presented: For the three months ended For the six months ended 6-30-09 6-30-08 6-30-09 6-30-08 Rental income $ -- $ 10,625 $ -- $ 22,640 Operating and other expenses -- (3,276 ) -- (7,090 ) Interest expense, net -- (546 ) -- (1,076 ) Depreciation expense -- (1,702 ) -- (4,553 ) Income from discontinued operations $ -- $ 5,101 $ -- $ 9,921

6070 - Segment Reporting

6070 - Segment Reporting
	6 Months Ended Jun. 30, 2009 USD / shares
Segment Reporting
Segment Reporting	8.Segment Reporting The Companys reportable operating segments include Established Communities, Other Stabilized Communities, and Development/Redevelopment Communities.Annually as of January 1st, the Company determines which of its communities fall into each ofthese categories and maintains that classification, unless disposition plans regarding a community change, throughout the year for the purpose of reporting segment operations. Established Communities (also known as Same Store Communities) are communities where a comparison of operating results from the prior year to the current year is meaningful, as these communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior year.For the year 2009, the Established Communities are communities that are consolidated for financial reporting purposes, had stabilized occupancy and operating expenses as of January 1, 2008, are not conducting or planning to conduct substantial redevelopment activities and are not held for sale or planned for disposition within the current year.A community is considered to have stabilized occupancy at the earlier of (i) attainment of 95% physical occupancy or (ii) the one-year anniversaryof completion of development or redevelopment. Other Stabilized Communities includes all other completed communities that have stabilized occupancy, as defined above.Other Stabilized Communities does not include communities that are conducting or planning to conduct substantial redevelopment activities within the current year. Development/Redevelopment Communities consists of communities that are under construction and have not received a final certificate of occupancy, communities where the company owns a majority interest and where substantial redevelopment is in progress or is planned to begin during the current year and communities under lease-up that had not reached stabilized occupancy, as defined above, as of January 1, 2009. In addition, the Company owns land for future development and has other corporate assets that are not allocated to an operating segment. SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information, requires that segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing such segments performance.The Companys chief operating decision maker is comprised of severalmembers 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 revenue less direct property operating expenses.Although the Company considers NOI a useful measure of a communitys 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 six months ended June 30, 2009 and 2008 is as follows: For the three months ended For the six mon

Based Compensation Plans

Based Compensation Plans
	6 Months Ended Jun. 30, 2009 USD / shares
Stock-Based Compensation Plans
Stock-Based Compensation Plans	9.Stock-Based Compensation Plans On May 21, 2009, the stockholders of the Company, upon the recommendation of the Board of Directors, approved the AvalonBay Communities, Inc. 2009 Stock Option and Incentive Plan (the 2009 Plan). The 2009 Plan includes an authorization to issue up to 4,199,822 shares of the Companys common stock, par value $0.01 per share, (2,930,000 newly authorized shares plus 1,269,822 shares that were available for grant as of May 21, 2009 under the Companys 1994 Stock Option and Incentive Plan (the 1994 Plan)), pursuant to awards under the 2009 Plan. The 2009 Plan provides for various types of equity awards to employees, officers, non-employee directors and agents of the Company and its subsidiaries. The types of awards that may be granted under the 2009 Plan include restricted and deferred stock, stock optionsthat qualify as incentive stock options (ISOs) under Section 422 of the Internal Revenue Code, non-qualified options, and stock appreciation rights. The 2009 Plan will expire on May 21, 2019. Effective as of the close of business on May 21, 2009, and as part of the proposal to approve the 2009 Plan described above, the Board of Directors terminated the 1994 Plan with respect to new awards. The 1994 Plan provided for the same types of equity awards as the 2009 Plan, and would have expired by its terms on May 8, 2011. Outstanding awards previously granted under the 1994 Plan will not be affected by termination of the 1994 Plan, the terms of which shall continue to govern such previously granted awards.In addition to the 4,199,822 shares available for awards under the 2009 Plan as described above, any awards that were outstanding under the 1994 Plan on May 21, 2009 that are subsequently forfeited, canceled, surrendered or terminated (other than by exercise) will become available for awards under the 2009 Plan. Information with respect to stock options granted under the 1994 Plan is as follows: Weighted average 1994 Plan exercise price shares per share Options Outstanding, December 31, 2008 2,623,135 $ 83.49 Exercised (42,950 ) 34.05 Granted 344,801 48.60 Forfeited (13,365 ) 103.86 Options Outstanding, June 30, 2009 2,911,621 $ 79.99 Options Exercisable: June 30, 2009 2,187,979 $ 80.97 The weighted average fair value of the options granted during the six months ended June 30, 2009 is estimated at $6.53 per share on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: dividend yield of 8.5% over the expected life of the option, volatility of 36.57%, risk-free interestrate of 2.17% and an expected life of approximately seven years. At June 30, 2009, the Company had 253,215 outstanding unvested shares granted under restricted stock awards.The Company issued 169,851 shares of restricted stock valued at $8,360 as part of its stock-based compensation plan during the six months ended June 30, 2009.Compensation cost is recognized over the requisiteservice period, which varies, but does not exceed five years.The fair value of restricted stock is t

6090 - Related Party Arrangemen

6090 - Related Party Arrangements
	6 Months Ended Jun. 30, 2009 USD / shares
Related Party Arrangements
Related Party Arrangements	10.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 received fees of $2,077 and $1,579 in the three months ended June 30, 2009 and 2008, respectively and $3,545 and $3,217 for the six monthsended June 30, 2009 and 2008, respectively. These fees are included in management, development and other fees on the accompanying Condensed Consolidated Statements of Operations and Other Comprehensive Income. Director Compensation Directors of the Company who are also employees receive no additional compensation for their service as a director.Following each annual meeting of stockholders starting with the 2008 annual meeting, non-employee directors receive (i) a number of shares of restricted stock (or deferred stock awards) having a value of $125 and(ii) a cash payment of $50, payable in quarterly installments of $12.5.The number of shares of restricted stock (or deferred stock awards) is calculated based on the closing price on the day of the award.Non-employee directors may elect to receive all or a portion of cash payments in the form of a deferred stock award.In addition, the Lead Independent Director receives an annual fee of $30 payable in equal monthly installments of $2.5. The Company recorded non-employee director compensation expense relating to the restricted stock grants and deferred stock awards in the amount of $96 and $179 for the three and six months ended June 30, 2009 as a component of general and administrative expense.Deferred compensation relating to these restricted stock grantsand deferred stock awards was $458 and $137 on June 30, 2009 and December 31, 2008, respectively.

6100 - Fair Value Measurements

6100 - Fair Value Measurements
	6 Months Ended Jun. 30, 2009 USD / shares
Fair Value Measurements
Fair Value Measurements	11.Fair Value Fair Value Methodology As a basis for applying a market-based approach in fair value measurements, SFAS No. 157 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entitys own assumptions about market participant assumptions. The valuation of financial instruments can be determined using widely accepted valuation techniques. To comply with the provisions of SFAS No. 157, the Company applies widely accepted valuation models such as discounted cash flow analysis on the expected cash flows of each instrument which considers the contractual terms of the instruments, including the period to maturity, and uses observable market-based inputs, including interest rate curves and market prices, as available and applicable.In addition, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterpartys nonperformance risk in the fair value measurements as discussed below.When market-based inputs are not available in valuing the Companys financial instruments, such as for valuing the redeemable noncontrolling interests, the Company uses unobservable inputs consideringthe assumptions that market participants would make in deriving the fair value.The use of different market assumptions and/or estimation methodologies may have a material effect on the Companys estimates of fair value. Financial Instruments Carried at Fair Value Derivative Financial Instruments Currently, the Company uses interest rate swap and interest rate cap agreements to manage its interest raterisk.These instruments are carried at fair value in the Companys financial statements.See Note 5, Derivative Instruments and Hedging Activities, for derivative values at June 30, 2009 and a description of where these amounts are recorded in the 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.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, 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 June 30, 2009, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determinedit is not significant.As a result, the Company has determined that its derivative valuations are classified in Level 2 of the fair value hierarchy. Redeemable Noncontrolling Interests Redeemable noncontrolling interests are reported at fair value, with reductions in fair value recorded only to the extent that the Company has previously recorded increases in fair value above th

6110 - Subsequent Events

6110 - Subsequent Events
	6 Months Ended Jun. 30, 2009 USD / shares
Subsequent Events
Subsequent Events	12.Subsequent Events Subsequent events have been evaluated through August 7, 2009, the date the financial statements were issued. Pursuant to the requirements of SFAS 165, there were no events or transactions subsequent to June 30, 2009 that required recognition or disclosure in the financial statements.

Document Information

Document Information
	6 Months Ended Jun. 30, 2009 USD / shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Amendment Description	none
Document Period End Date	2009-06-30

Entity Information

Entity Information (USD $)
	6 Months Ended Jun. 30, 2009	Jul. 31, 2009	Jun. 30, 2008
Entity Information [Line Items]
Entity Registrant Name	Avalonbay Communities, Inc.
Entity Central Index Key	0000915912
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$6,818,282,578
Entity Common Stock, Shares Outstanding		79,934,963