AvalonBay Communities (AVB) 10-Q 5 May 10 2010 Q1 Quarterly report Financial data

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands	Mar. 31, 2010	Dec. 31, 2009
Real estate:
Land	$1,273,615	$1,250,679
Buildings and improvements	6,066,355	5,988,330
Furniture, fixtures and equipment	189,490	186,301
Total operating real estate	7,529,460	7,425,310
Less accumulated depreciation	(1,533,579)	(1,477,772)
Net operating real estate	5,995,881	5,947,538
Construction in progress, including land	580,814	531,299
Land held for development	206,713	237,095
Operating real estate assets held for sale, net	86,610	117,555
Total real estate, net	6,870,018	6,833,487
Cash and cash equivalents	123,297	105,691
Cash in escrow	207,336	210,676
Resident security deposits	22,456	23,646
Investments in unconsolidated real estate entities	72,999	74,570
Deferred financing costs, net	32,375	34,531
Deferred development costs	85,302	87,763
Prepaid expenses and other assets	94,351	87,241
Total assets	7,508,134	7,457,605
LIABILITIES AND STOCKHOLDERS' EQUITY
Unsecured notes, net	1,659,529	1,658,029
Mortgage notes payable	2,290,378	2,316,843
Dividends payable	73,804	72,773
Payables for construction	48,368	49,623
Accrued expenses and other liabilities	235,951	233,029
Accrued interest payable	22,520	35,069
Resident security deposits	33,532	33,646
Liabilities related to real estate assets held for sale	1,679	2,669
Total liabilities	4,365,761	4,401,681
Redeemable noncontrolling interests	6,724	5,797
Stockholders' Equity [Abstract]
Common stock, $0.01 par value; 140,000,000 shares authorized at both March 31, 2010 and December 31, 2009; 82,693,377 and 81,528,957 shares issued and outstanding at March 31, 2010 and December 31, 2009, respectively	827	815
Additional paid-in capital	3,287,671	3,200,367
Accumulated earnings less dividends	(152,324)	(149,988)
Accumulated other comprehensive loss	(525)	(1,067)
Total stockholders' equity	3,135,649	3,050,127
Total liabilities and stockholders' equity	$7,508,134	$7,457,605

PARENTHETICAL DATA TO THE CONDE

PARENTHETICAL DATA TO THE CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
	Mar. 31, 2010	Dec. 31, 2009
Stockholders' Equity [Abstract]
Common stock, par value (in dollars per share)	0.01	0.01
Common stock, shares authorized (in shares)	140,000,000	140,000,000
Common stock, shares issued (in shares)	82,693,377	81,528,957
Preferred stock, par value (in dollars per share)	0.01	0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenue:
Rental and other income	$213,738	$208,265
Management, development and other fees	1,849	1,468
Total revenue	215,587	209,733
Expenses:
Operating expenses, excluding property taxes	65,031	62,780
Property taxes	23,172	20,886
Interest expense, net	42,541	30,130
Gain on extinguishment of debt, net		(1,062)
Depreciation expense	56,095	50,073
General and administrative expense	8,895	7,247
Total expenses	195,734	170,054
Equity in income of unconsolidated entities	227	3,457
Income from continuing operations	20,080	43,136
Discontinued operations:
Income from discontinued operations	1,995	3,965
Gain on sale of communities	50,291
Total discontinued operations	52,286	3,965
Net income	72,366	47,101
Net loss attributable to redeemable noncontrolling interests	157	324
Net income attributable to common stockholders	72,523	47,425
Other comprehensive income:
Unrealized gain on cash flow hedges	542	376
Comprehensive income	$73,065	$47,801
Earnings per common share - basic:
Income from continuing operations attributable to common stockholders	0.25	0.55
Discontinued operations attributable to common stockholders	0.64	0.05
Net income attributable to common stockholders	0.89	0.6
Earnings per common share - diluted:
Income from continuing operations attributable to common stockholders	0.25	0.54
Discontinued operations attributable to common stockholders	0.63	0.05
Net income attributable to common stockholders	0.88	0.59
Dividends per common share:	0.8925	0.8925

1_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities:
Net income	$72,366	$47,101
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation expense	56,095	50,073
Depreciation expense from discontinued operations		2,567
Amortization of deferred financing costs and debt premium/discount	2,246	2,223
Amortization of stock-based compensation	2,226	2,368
Equity in loss (income) of unconsolidated entities, net of eliminations	226	(4,281)
Gain on extinguishment of debt, net		(1,062)
Gain on sale of real estate assets	(50,291)
Decrease (increase) in cash in operating escrows	269	(166)
Increase in resident security deposits, prepaid expenses and other assets	(4,813)	(2,669)
Decrease in accrued expenses, other liabilities and accrued interest payable	(9,441)	(5,333)
Net cash provided by operating activities	68,883	90,821
Cash flows from investing activities:
Development/redevelopment of real estate assets including land acquisitions and deferred development costs	(118,604)	(148,333)
Capital expenditures - existing real estate assets	(1,475)	(839)
Capital expenditures - non-real estate assets	(359)	(294)
Proceeds from sale of real estate, net of selling costs	81,335
Decrease in payables for construction	(1,255)	(7,128)
Decrease in cash in construction escrows	3,071	23,884
Decrease in investments in unconsolidated real estate entities	1,244	3,029
Net cash used in investing activities	(36,043)	(129,681)
Cash flows from financing activities:
Issuance of common stock	83,896	35
Dividends paid	(72,603)	(68,841)
Net borrowings under unsecured credit facility		235,000
Repayments of mortgage notes payable	(26,465)	(2,107)
Repayment of unsecured notes		(100,573)
Distributions to DownREIT partnership unitholders	(14)	(25)
Distributions to joint venture and profit-sharing partners	(48)
Net cash (used in) provided by financing activities	(15,234)	63,489
Net increase in cash and cash equivalents	17,606	24,629
Cash and cash equivalents, beginning of period	105,691	65,706
Cash and cash equivalents, end of period	123,297	90,335
Cash paid during the period for interest, net of amount capitalized	$49,552	$33,717

Organization, Basis of Presenta

Organization, Basis of Presentation and Significant Accounting Policies
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Organization, Basis of Presentation and Significant Accounting Policies	1.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 consolidated subsidiaries), is a Maryland corporation that elected to be taxed as a real estate investment trust (REIT) under the Internal Revenue Code of 1986 (the Code). 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 March 31, 2010, the Company owned or held a direct or indirect ownership interest in 165 operating apartment communities containing 47,813 apartment homes in ten states and the District of Columbia, of which seven communities containing 2,615 apartment homes were under reconstruction.In addition, the Company owned or held a direct or indirect ownership interest in seven communities under construction that are expected to contain an aggregate of 2,509 apartment homes when completed.The Company also owned or held a direct or indirect ownership interest in rights to develop an additional 29 communities that, if developed as expected, will contain an estimated 7,361 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 Companys 2009 Annual Report on Form 10-K.The results of operations for the three months ended March 31, 2010 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. All capitalized terms have the meaning as 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

Interest Capitalized

Interest Capitalized
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Interest Capitalized	2.Interest Capitalized The Company capitalizes interest during the development and redevelopment of real estate assets. Capitalized interest associated with the Companys development or redevelopment activities totaled $9,836 and $12,368 for the three months ended March, 31, 2010 and 2009, respectively.

Notes Payable, Unsecured Notes

Notes Payable, Unsecured Notes and Credit Facility
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Notes Payable, Unsecured Notes and Credit Facility	3.Notes Payable, Unsecured Notes and Credit Facility The Companys mortgage notes payable, unsecured notes and Credit Facility, as defined below, as of March 31, 2010 and December 31, 2009, are summarized below.The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of March 31, 2010 and December 31, 2009, as shown in the Condensed Consolidated Balance Sheets (see Note 7, Real Estate Disposition Activities). 3-31-10 12-31-09 Fixed rate unsecured notes(1) $1,358,347 $1,358,257 Variable rate unsecured notes(2) 301,182 299,772 Fixed rate mortgage notes payable - conventional and tax-exempt 1,606,254 1,632,605 Variable rate mortgage notes payable - conventional and tax-exempt 684,124 684,238 Total notes payable and unsecured notes 3,949,907 3,974,872 Variable rate unsecured credit facility -- -- Total mortgage notes payable, unsecured notes and Credit Facility $3,949,907 $3,974,872 (1) Balances at March 31, 2010 and December 31, 2009 include $2,130 and $2,220 of debt discount. (2) Balances at March 31, 2010 and December 31, 2009 include $1,182 and ($228) for basis adjustments resulting from qualifying fair value hedging relationships. The following debt activity occurred during the three months ended March 31, 2010: In February 2010, the Company repaid a 6.47% fixed rate secured mortgage note in the amount of $13,961 in advance of its March 2012 scheduled maturity date. In March 2010, the Company repaid a 6.95% fixed rate secured mortgage note in the amount of $11,226 in advance of its February 2025 scheduled maturity date. In the aggregate, secured notes payable mature at various dates from October 2010 through July 2066, and are secured by certain apartment communities and improved land parcels (with a net carrying value of $1,829,247 as of March 31, 2010).As of March 31, 2010, the Company has guaranteed approximately $437,729 of mortgage notes payable held by wholly owned subsidiaries; all such mortgage notes payable are consolidated for financial reporting purposes.The weighted average interest rate of the Companys fixed rate mortgage notes payable (conventional and tax-exempt) was 5.1% at March 31, 2010 and December 31, 2009.The weighted average interest rate of the Companys variable rate mortgage notes payable and its Credit Facility, including the effect of certain financing related fees, was 3.4% at March 31, 2010 and 2.9% at December 31, 2009. Scheduled payments and maturities of mortgage notes payable and unsecured notes outstanding at March 31, 2010 are as follows: Year Secured notes payments (1) Secured notes maturities Unsecured notes maturities Stated interest rate of unsecured notes 2010 $3,589 $29,387 $14,576 7.500% 75,000 7.038% (2) 2011 10,776 36,610 39,900 6.625% 150,000 5.667% (2) 2012 14,034 108,224 201,601 6.125% 104,400 5.500% 75,000

Stockholders' Equity

Stockholders' Equity
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Stockholders' Equity	4.Stockholders Equity The following summarizes the changes in stockholders equity for the three months ended March 31, 2010: Accumulated Accumulated Additional earnings other Total Common paid-in less comprehensive stockholders' stock capital dividends loss equity Balance at December 31, 2009 $815 $3,200,367 $(149,988) $(1,067) $3,050,127 Net income attributable to common stockholders -- -- 72,523 -- 72,523 Unrealized gain on cash flow hedges -- -- -- 542 542 Change in redemption value of redeemable noncontrolling interest -- -- (1,145) -- (1,145) Dividends declared to common stockholders -- -- (73,804) -- (73,804) Issuance of common stock 12 80,909 90 -- 81,011 Amortization of deferred compensation -- 6,395 -- -- 6,395 Balance at March 31, 2010 $827 $3,287,671 $(152,324) $(525) $3,135,649 During the three months ended March 31, 2010, the Company: (i) issued 891,685 shares of common stock through public offerings; (ii) issued 211,320 shares of common stock in connection with stock options exercised; (iii) issued 1,998 common shares through the Companys dividend reinvestment plan; (iv) issued 96,394 common shares in connection with stock grants; (v) issued 3,283 shares to members of the Board of Directors in fulfillment of deferred stock awards; (vi) withheld 38,960 common shares to satisfy employees tax withholding and other liabilities; and (vii) had 1,300 shares of restricted common stock forfeited. In addition, the Company granted 126,484 options for common stock to employees.Any deferred compensation related to the Companys stock option and restricted stock grants during the three months ended March 31, 2010 is not reflected on the Companys Condensed Consolidated Balance Sheet as of March 31, 2010, and will not be reflected until earned as compensation cost. In August 2009, the Company commenced a continuous equity program (the CEP), under which the Company may sell up to $400,000 of its common stock until August 2012. During the three months ended March 31, 2010, the Company sold 891,685 shares under this program at an average sales price of $84.10 per share, for net proceeds of $73,870.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
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) 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 derivative transactions for trading or other speculative purposes.The following table summarizes the consolidated Hedging Derivatives at March 31, 2010, excluding derivatives executed to hedge debt on communities classified as held for sale (dollars in thousands): Non-designated Hedges Cash Flow Hedges Fair Value Hedges Interest Interest Interest Interest Rate Caps Rate Caps Rate Swaps Rate Swaps Notional balance $109,847 $15,615 $43,044 $300,000 Weighted average interest rate (1) 1.5% 1.7% 6.5% 5.7% Weighted average capped interest rate 6.9% 6.0% n/a n/a Earliest maturity date Apr-11 Jun-12 Jun-10 Dec-10 Latest maturity date Mar-14 Jun-12 Jun-10 Jan-12 Estimated fair value, asset/(liability) $33 $6 $(365) $1,182 (1) For interest rate caps, this represents the weighted average interest rate on 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, five derivatives designated as fair value hedges and five derivatives not designated as hedges at March 31, 2010. Fair value changes for derivatives that are not in qualifying hedge relationships are reported as a component of general and administrative expenses on the accompanying Condensed Consolidated Statements of Operations and Other Comprehensive Income.Fair value changes for derivatives not in qualifying hedge relationships for the three months ended March 31, 2010, were not material. For the derivative positions that the Company has determined qualify as effective cash flow hedges, the Company has recorded the effective portion of cumulative changes in the fair value of 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 in qualifying cash flow hedges to their fair value and recognize the impact of hedge accounting, the Company recorded an increase in other comprehensive income of $542 and $376 during the three months ended March 31, 2010 and 2009, respectively. The amount reclassified into earnings for the three months ended March 31, 2010, as well as the estimated amount included in accumulated other comprehensive income as of March 31, 2010, 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. For the derivative positions that the Company has determined qualify as effective fair value hedges, the Company has recorded an increase in the fair value of $1,410 with the derivatives fair value report

Investments in Real Estate Enti

Investments in Real Estate Entities
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Investments in Real Estate Entities	6.Investments in Real Estate Entities As of March 31, 2010, the Company had investments in six unconsolidated real estate entities with ownership interest percentages ranging from 15.2% to 50%. There were no changes in the Companys ownership interest in, or presentation of, its investments in unconsolidated real estate entities during the three months ended March 31, 2010. Detail of the real estate and associated funding underlying the Companys unconsolidated investments is presented in the following table (unaudited). Company # of Total Debt Ownership Apartment Capitalized Interest Maturity Unconsolidated Real Estate Investments Percentage Homes Cost (1) Amount Type Rate (2) Date Fund I 1. Avalon at Redondo Beach - Los Angeles, CA 105 $24,622 $21,033 Fixed 4.87% Oct 2011 2. Avalon Lakeside - Chicago, IL 204 18,231 12,056 Fixed 5.74% Mar 2012 3. Avalon Columbia - Baltimore, MD 170 29,346 22,275 Fixed 5.48% Apr 2012 4. Avalon Sunset - Los Angeles, CA 82 20,903 12,750 Fixed 5.41% Mar 2014 5. Avalon at Poplar Creek - Chicago, IL 196 28,014 16,500 Fixed 4.83% Oct 2012 6. Avalon at Civic Center - Norwalk, CA 192 42,756 27,001 Fixed 5.38% Aug 2013 7. Avalon Paseo Place - Fremont, CA 134 24,825 11,800 Fixed 5.74% Nov 2013 8. Avalon at Yerba Buena - San Francisco, CA 160 66,791 41,500 Fixed 5.88% Mar 2014 9. Avalon at Aberdeen Station - Aberdeen, NJ 290 58,219 39,842 Fixed 5.64% Sep 2013 10. The Springs - Corona, CA 320 48,392 26,000 Fixed 6.06% Oct 2014 11. Avalon Lombard - Lombard, IL 256 35,319 17,243 Fixed 5.43% Jan 2014 12. Avalon Cedar Place - Columbia, MD 156 24,399 12,000 Fixed 5.68% Feb 2014 13. Avalon Centerpoint - Baltimore, MD 392 79,557 45,000 Fixed 5.74% Dec 2013 - 14. Middlesex Crossing - Billerica, MA 252 38,043 24,100 Fixed 5.49% Dec 2013 15. Avalon Crystal Hill - Ponoma, NY 168 38,603 24,500 Fixed 5.43% Dec 2013 16. Avalon Skyway - San Jose, CA 348 78,218 37,500 Fixed 6.11% Mar 2014 17. Avalon Rutherford Station - East Rutherford, NJ 108 36,771 20,019 Fixed 6.13% Sep 2016 18. South Hills Apartments - West Covina, CA 85 24,756 11,761 Fixed 5.92% Oct 2013 19. Weymouth Place - Weymouth, MA 211 25,298 13,455 Fixed 5.12% Mar 2015 Total Fund I 15.2% 3,829 $743,063 $4

Real Estate Disposition Activit

Real Estate Disposition Activities
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Real Estate Disposition Activities	7.Real Estate Disposition Activities During the three months ended March 31, 2010, the Company sold two wholly owned communities, Avalon at Danada Farms, located in Wheaton, Illinois and Avalon Knoll, located in Germantown, Maryland. In the aggregate, these two communities contain 595 apartment homes and were sold for a gross sales price of $82,950. These dispositions resulted in a gain in accordance with GAAP of approximately $50,291. As of March 31, 2010, the Company had one community that qualified as discontinued operations and held for sale. The operations for any real estate assets sold from January 1, 2009 through March 31, 2010 and the real estate assets that qualified as discontinued operations and held for sale as of March 31, 2010 have been presented as such in the accompanying Condensed Consolidated Financial Statements. Accordingly, certain reclassifications have been made to prior years to reflect discontinued operations consistent with current year presentation. The following is a summary of income from discontinued operations for the periods presented: For the three months ended 3-31-10 3-31-09 Rental income $3,202 $9,946 Operating and other expenses (1,207) (3,237) Interest expense, net -- (177) Depreciation expense -- (2,567) Income from discontinued operations $1,995 $3,965

Segment Reporting

Segment Reporting
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
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 of these categories and maintains that classification, unless disposition plans regarding a community change, throughout the year for the purpose of reporting segment operations. In addition, the Company owns land for future development and has other corporate assets that are not allocated to an operating segment. The Companys 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 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 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 three months ended March 31, 2010 and 2009 is as follows: For the three months ended 3-31-10 3-31-09 Net income $72,366 $47,101 Indirect operating expenses, net of corporate income 7,232 8,575 Investments and investment management expense 1,039 916 Expensed development and other pursuit costs 505 1,093 Interest expense, net 42,541 30,130 Gain on extinguishment of debt, net -- (1,062) General and administrative expense 8,895 7,247 Equity in income of unconsolidated entities (227) (3,457) Depreciation expense 56,095 50,073 Gain on sale of real estate assets (50,291) -- Income from discontinued operations (1,995) (3,965) Net operating income $136,160 $136,651 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 Companys segment information as of the dates specified. The segments are classified based on the individual communitys status as of the beginning of the given calendar year. Therefore, each year the composition of communities within each business segment is adjusted.Accordingly, the amounts between years are not directly comparable. Segment information for the three months ended March 31, 2010 and 2009 have been adjusted for the communities that were sold from January 1, 2009 through March 31, 2010, or otherwise qualify as discontinued operations as of March 31, 2010, as described in Note 7, Real

Stock-Based Compensation Plans

Stock-Based Compensation Plans
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Stock-Based Compensation Plans	9.Stock-Based Compensation Plans Information with respect to stock options granted under the Companys 1994 Stock Option and Incentive Plan (the 1994 Plan) and under the AvalonBay Communities, Inc. 2009 Stock Option and Incentive Plan (the 2009 Plan) are as follows: Weighted Weighted average average 2009 Plan exercise price 1994 Plan exercise price shares per share shares per share Options Outstanding, December 31, 2009 -- $- 2,836,254 $80.76 Exercised -- -- (211,320) 48.41 Granted 126,484 74.20 -- -- Forfeited -- -- (11,571) 90.74 Options Outstanding, March 31, 2010 126,484 $74.20 2,613,363 $83.34 Options Exercisable March 31, 2010 -- N/A 2,256,938 $86.58 The weighted average fair value of the options granted under the 2009 Plan during the three months ended March 31, 2010 is estimated at $19.45 per share on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: dividend yield of 5.5% over the expected life of the option, volatility of 43.00%, risk-free interest rate of 3.15% and an expected life of approximately seven years. At March 31, 2010, the Company had 234,611 outstanding unvested shares granted under restricted stock awards. The Company issued 96,394 shares of restricted stock valued at $7,152 as part of its stock-based compensation plan during the three months ended March 31, 2010. Restricted stock vesting during the three months ended March 31, 2010 totaled 106,423 shares and had fair values at the grant date ranging from $48.60 to $147.75 per share.The total fair value of shares vested was $8,913 and $9,794 for the three months ended March 31, 2010 and 2009, respectively. Total employee stock-based compensation cost recognized in income was $3,485, and $3,536 for the three months ended March 31, 2010 and 2009, respectively, and total capitalized stock-based compensation cost was $1,329 and $1,546 for the three months ended March 31, 2010 and 2009, respectively.At March 31, 2010, there was a total of $2,999 and $9,088 in unrecognized compensation cost for unvested stock options and unvested restricted stock, respectively, which does not include estimated forfeitures. The unrecognized compensation cost for unvested stock options and restricted stock is expected to be recognized over a weighted average period of 2.10 years and 2.70 years, respectively. Deferred Stock Performance Plan The total cost recognized in earnings in connection with the multi-year performance plan implemented by the Company in 2008 was $427 and $437 for the three months ended March 31, 2010 and 2009, respectively, and total capitalized stock-based compensation cost was $233 and $249 for the three months ended March 31, 2010 and 2009, respectively.

Related Party Arrangements

Related Party Arrangements
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
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 $1,849 and $1,468 in the three months ended March 31, 2010 and 2009, respectively.These fees are included in management, development and other fees on the accompanying Condensed Consolidated Statements of Operations and Other Comprehensive Income. In addition, the Company has outstanding receivables associated with its management role of $3,803 and $2,125 as of March 31, 2010 and 2009, respectively. Director Compensation The Company recorded non-employee director compensation expense relating to the restricted stock grants and deferred stock awards in the amount of $219 for three months ended March 31, 2010 as a component of general and administrative expense.Deferred compensation relating to these restricted stock grants and deferred stock awards was $146 and $365 on March 31, 2010 and December 31, 2009, respectively.

Fair Value

Fair Value
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Fair Value	11.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 March 31, 2010 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 March 31, 2010, 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. Redeemable Noncontrolling Interests Puts The Company provided redemption options (the Puts) that allow two of the Companys joint venture partners to require the Company to purchase their interests in the investments at the future fair market value.One Put is payable in cash or, at the Companys option, common stock of the Company, and the second is 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. The Company applies discount factors to the estimated future cash flowsof the asset underlying the associated joint venture, which in the case of the Puts is the NOI from an apartment community, as well as potential disposition proceeds utilizing market capitalization rates, to derive the fair value of the position.Given the significance of the unobservable inputs, the valuations are classified in Level 3 of the fair value hierarchy. At December 31, 2009, the Puts aggregate fair value was $4,101. At March 31, 2010, the aggregate fair value of the Puts was $4,963. DownREIT units 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 a cash amount as determined by the applicable 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 Companys 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 in the Companys common stock. The limite

Subsequent Events

Subsequent Events
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Subsequent Events	12.Subsequent Events The Company has evaluated subsequent events through the date on which this Form 10-Q was filed, the date on which these financial statements were issued, and identified the items below for discussion. In April 2010, the Company sold one community, Avalon on the Sound, located in New Rochelle, New York. Avalon on the Sound contains 412 apartment homes and was sold for $107,500. The Company estimates that it will record a GAAP gain of approximately $19,500 related to this disposition. In April 2010, the Company settled a lawsuit relating to the Companys former Avalon Wynhaven community, which was sold in 2008. In conjunction with the settlement the Company made a payment to the homeowners association and an indemnification payment to the buyer of Avalon Wynhaven, of approximately $1,350.The Company previously had deferred recognition of $3,272 from the gain in disposition related to these costs, and will recognize the remainder of the deferred gain in the second quarter of 2010. In April 2010, the Company sold an additional 271,700 shares under its CEP at an average sales price of $92.00 per share, for net proceeds of $24,620.

Document Information

Document Information
	3 Months Ended Mar. 31, 2010
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2010-03-31

Entity Information

Entity Information (USD $)
	3 Months Ended Mar. 31, 2010	Apr. 30, 2010	Dec. 31, 2009
Entity [Text Block]
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			$4,435,004,264
Entity Common Stock, Shares Outstanding		82,984,697
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1