Q4 2022 | Q4 2021 | % | ||||||||||||||||||
Change | ||||||||||||||||||||
EPS | $ | 1.72 | $ | 2.40 | (28.3) | % | ||||||||||||||
FFO per share (1) | $ | 2.57 | $ | 2.27 | 13.2 | % | ||||||||||||||
Core FFO per share (1) | $ | 2.59 | $ | 2.27 | 14.1 | % | ||||||||||||||
(1) For additional detail on reconciling items between net income attributable to common stockholders, FFO and Core FFO, see Attachment 14, table 2. | ||||||||||||||||||||
Q4 2022 Results Compared to Q4 2021 | |||||||||||
Per Share | |||||||||||
EPS | FFO | Core FFO | |||||||||
Q4 2021 per share reported results | $ | 2.40 | $ | 2.27 | $ | 2.27 | |||||
Same Store Residential NOI (1) | 0.29 | 0.29 | 0.29 | ||||||||
Development and Other Stabilized Residential NOI | 0.08 | 0.08 | 0.08 | ||||||||
Commercial NOI | 0.01 | 0.01 | 0.01 | ||||||||
Overhead and other | (0.10) | (0.10) | (0.05) | ||||||||
Capital markets and transaction activity | — | 0.01 | (0.03) | ||||||||
Unconsolidated investment income | 0.03 | 0.03 | 0.02 | ||||||||
Income taxes | (0.02) | (0.02) | — | ||||||||
Gain on sale of real estate and depreciation expense | (0.97) | — | — | ||||||||
Q4 2022 per share reported results | $ | 1.72 | $ | 2.57 | $ | 2.59 | |||||
(1) Consists of increases of $0.38 in revenue and $0.09 in operating expenses. | |||||||||||
Q4 2022 Results Compared to November 2022 Outlook | |||||||||||
Per Share | |||||||||||
EPS | FFO | Core FFO | |||||||||
Projected per share (1) | $ | 1.75 | $ | 2.57 | $ | 2.60 | |||||
Same Store Residential NOI (2) | (0.02) | (0.02) | (0.02) | ||||||||
Development and Other Stabilized Residential NOI | — | — | — | ||||||||
Commercial NOI | — | — | — | ||||||||
Overhead and other | (0.06) | (0.06) | (0.02) | ||||||||
Capital markets and transaction activity | 0.04 | 0.04 | 0.01 | ||||||||
Unconsolidated investment income and other | 0.07 | 0.07 | 0.02 | ||||||||
Income taxes | (0.03) | (0.03) | — | ||||||||
Gain on sale of real estate and depreciation expense | (0.03) | — | — | ||||||||
Q4 2022 per share reported results | $ | 1.72 | $ | 2.57 | $ | 2.59 | |||||
(1) The mid-point of the Company's November 2022 outlook. | |||||||||||
(2) Consists of $0.01 for revenue and $0.01 for operating expenses. | |||||||||||
Full Year 2022 | Full Year 2021 | % | ||||||||||||||||||
Change | ||||||||||||||||||||
EPS | $ | 8.12 | $ | 7.19 | 12.9 | % | ||||||||||||||
FFO per share | $ | 9.67 | $ | 8.13 | 18.9 | % | ||||||||||||||
Core FFO per share | $ | 9.79 | $ | 8.26 | 18.5 | % | ||||||||||||||
Full Year 2022 Results Compared to Full Year 2021 | |||||||||||
Per Share | |||||||||||
EPS | FFO | Core FFO | |||||||||
2021 per share reported results | $ | 7.19 | $ | 8.13 | $ | 8.26 | |||||
Same Store Residential NOI (1) | 1.29 | 1.29 | 1.29 | ||||||||
Development and Other Stabilized Residential NOI | 0.42 | 0.42 | 0.42 | ||||||||
Commercial NOI | 0.07 | 0.07 | 0.07 | ||||||||
Overhead and other | (0.26) | (0.26) | (0.20) | ||||||||
Capital markets and transaction activity | 0.04 | 0.04 | (0.10) | ||||||||
Unconsolidated investment income | 0.04 | 0.04 | 0.05 | ||||||||
Income taxes | (0.06) | (0.06) | — | ||||||||
Gain on sale of real estate and depreciation expense | (0.61) | — | — | ||||||||
2022 per share reported results | $ | 8.12 | $ | 9.67 | $ | 9.79 | |||||
(1) Consists of increases of $1.57 in revenue and $0.28 in operating expenses. | |||||||||||
Same Store Residential Rental Revenue Change | |||||
Q4 2022 Compared to Q4 2021 | |||||
Residential rental revenue | |||||
Lease rates | 8.9 | % | |||
Concessions and other discounts | 1.7 | % | |||
Economic occupancy | (0.3) | % | |||
Other rental revenue | 1.2 | % | |||
Uncollectible lease revenue (excluding rent relief) (1) | 1.2 | % | |||
Rent relief (2) | (2.4) | % | |||
Residential rental revenue | 10.3 | % | |||
(1) Adjusting to remove the impact of rent relief, uncollectible lease revenue as a percentage of total Residential rental revenue decreased to 3.0% in Q4 2022 from 4.5% in Q4 2021. See Attachment 14, table 10 for further detail of uncollectible lease revenue for the Company’s Same Store portfolio. | |||||
(2) The Company recognized $3,060,000 and $15,452,000 from government rent relief programs during Q4 2022 and Q4 2021, respectively. | |||||
Q4 2022 Compared to Q4 2021 | ||||||||||||||||||||||||||
Same Store Residential | ||||||||||||||||||||||||||
Rental Revenue (1) | Opex (2) | % of Q4 2022 NOI | ||||||||||||||||||||||||
NOI | ||||||||||||||||||||||||||
New England | 13.3 | % | 8.5 | % | 15.9 | % | 15.0 | % | ||||||||||||||||||
Metro NY/NJ | 13.4 | % | 7.7 | % | 15.8 | % | 21.5 | % | ||||||||||||||||||
Mid-Atlantic | 8.4 | % | 4.4 | % | 10.2 | % | 14.8 | % | ||||||||||||||||||
Southeast FL | 17.4 | % | 34.4 | % | 9.6 | % | 1.6 | % | ||||||||||||||||||
Denver, CO | 13.2 | % | 10.6 | % | 14.2 | % | 1.3 | % | ||||||||||||||||||
Pacific NW | 14.2 | % | 9.2 | % | 16.4 | % | 6.2 | % | ||||||||||||||||||
N. California | 9.7 | % | 10.6 | % | 9.4 | % | 18.3 | % | ||||||||||||||||||
S. California | 5.5 | % | 7.0 | % | 5.0 | % | 21.3 | % | ||||||||||||||||||
Total | 10.3 | % | 8.2 | % | 11.3 | % | 100.0 | % | ||||||||||||||||||
(1) See Attachment 4, Quarterly Residential Rental Revenue and Occupancy Changes, for additional detail. | ||||||||||||||||||||||||||
(2) See Attachment 7, Residential Operating Expenses ("Opex"), for discussion of variances. | ||||||||||||||||||||||||||
Same Store Residential Rental Revenue Change | |||||
Full Year 2022 Compared to Full Year 2021 | |||||
Residential rental revenue | |||||
Lease rates | 7.8 | % | |||
Concessions and other discounts | 1.9 | % | |||
Economic occupancy | 0.1 | % | |||
Other rental revenue | 1.0 | % | |||
Uncollectible lease revenue (excluding rent relief) (1) | (0.1) | % | |||
Rent relief (2) | 0.2 | % | |||
Residential rental revenue | 10.9 | % | |||
(1) Adjusting to remove the impact of rent relief, uncollectible lease revenue as a percentage of total Residential rental revenue decreased to 3.4% in 2022 from 3.7% in 2021. | |||||
(2) The Company recognized $36,778,000 and $31,823,000 from government rent relief programs during 2022 and 2021, respectively. | |||||
Full Year 2022 Compared to Full Year 2021 | ||||||||||||||||||||||||||
Same Store Residential | ||||||||||||||||||||||||||
Rental Revenue (1) | Opex (2) | % of 2022 NOI | ||||||||||||||||||||||||
NOI | ||||||||||||||||||||||||||
New England | 12.5 | % | 6.0 | % | 16.2 | % | 14.7 | % | ||||||||||||||||||
Metro NY/NJ | 12.2 | % | 8.0 | % | 14.2 | % | 20.8 | % | ||||||||||||||||||
Mid-Atlantic | 7.4 | % | 4.6 | % | 8.8 | % | 14.6 | % | ||||||||||||||||||
Southeast FL | 20.7 | % | 10.4 | % | 27.0 | % | 1.6 | % | ||||||||||||||||||
Denver, CO | 13.1 | % | (1.3) | % | 19.5 | % | 1.3 | % | ||||||||||||||||||
Pacific NW | 15.3 | % | 4.8 | % | 20.3 | % | 6.4 | % | ||||||||||||||||||
N. California | 8.3 | % | 5.8 | % | 9.4 | % | 18.5 | % | ||||||||||||||||||
S. California | 11.2 | % | 5.9 | % | 13.6 | % | 22.1 | % | ||||||||||||||||||
Total | 10.9 | % | 6.0 | % | 13.2 | % | 100.0 | % | ||||||||||||||||||
(1) See Attachment 6, Full Year Residential Rental Revenue and Occupancy Changes, for additional detail. | ||||||||||||||||||||||||||
(2) See Attachment 7, Residential Opex, for discussion of variances. | ||||||||||||||||||||||||||
Projected EPS, Projected FFO and Projected Core FFO Outlook (1) | ||||||||||||||||||||||||||
Q1 2023 | Full Year 2023 | |||||||||||||||||||||||||
Low | High | Low | High | |||||||||||||||||||||||
Projected EPS | $ | 1.05 | — | $ | 1.15 | $ | 6.25 | — | $ | 6.75 | ||||||||||||||||
Projected FFO per share | $ | 2.46 | — | $ | 2.56 | $ | 9.99 | — | $ | 10.49 | ||||||||||||||||
Projected Core FFO per share | $ | 2.47 | — | $ | 2.57 | $ | 10.06 | — | $ | 10.56 | ||||||||||||||||
(1) See Attachment 14, table 8, for reconciliations of Projected FFO per share and Projected Core FFO per share to Projected EPS. | ||||||||||||||||||||||||||
Full Year 2023 Outlook Comparison to Full Year 2022 Full Year Results | |||||||||||
Per Share | |||||||||||
EPS | FFO | Core FFO | |||||||||
2022 per share reported results | $ | 8.12 | $ | 9.67 | $ | 9.79 | |||||
Same Store NOI (1) | 0.51 | 0.51 | 0.51 | ||||||||
Development and Other Stabilized Residential NOI | 0.20 | 0.20 | 0.19 | ||||||||
Commercial NOI | (0.01) | (0.01) | (0.01) | ||||||||
Overhead and other | 0.05 | 0.05 | 0.03 | ||||||||
Capital markets and transaction activity | (0.08) | (0.08) | (0.10) | ||||||||
Variable rate interest expense | (0.10) | (0.10) | (0.10) | ||||||||
Gain on sale of real estate and depreciation expense | (2.19) | — | — | ||||||||
Projected per share - 2023 outlook (2) | $ | 6.50 | $ | 10.24 | $ | 10.31 | |||||
(1) Consists of increases of $0.85 in revenue and $0.34 in operating expenses. | |||||||||||
(2) Represents the mid-point of the Company's February 2023 outlook. | |||||||||||
Q4 2022 Results Compared to Q1 2023 Outlook | |||||||||||
Per Share | |||||||||||
EPS | FFO | Core FFO | |||||||||
Q4 2022 per share reported results | $ | 1.72 | $ | 2.57 | $ | 2.59 | |||||
Same Store NOI (1) | (0.03) | (0.03) | (0.03) | ||||||||
Development and Other Stabilized Residential NOI | — | — | — | ||||||||
Commercial NOI | — | — | — | ||||||||
Overhead and other | (0.02) | (0.02) | (0.03) | ||||||||
Capital markets and transaction activity | — | — | — | ||||||||
Variable rate interest expense | (0.01) | (0.01) | (0.01) | ||||||||
Gain on sale of real estate and depreciation expense | (0.56) | — | — | ||||||||
Projected per share - Q1 2023 outlook (2) | $ | 1.10 | $ | 2.51 | $ | 2.52 | |||||
(1) Consists of increases of $0.04 in revenue and $0.07 in operating expenses. | |||||||||||
(2) Represents the mid-point of the Company's February 2023 outlook. | |||||||||||
Company Profile | ||||||||
Condensed Consolidated Operating Information.......................................................................................................... | Attachment 1 | |||||||
Condensed Consolidated Balance Sheets.................................................................................................................... | Attachment 2 | |||||||
Sequential Operating Information................................................................................................................................. | Attachment 3 | |||||||
Market Profile - Same Store | ||||||||
Quarterly Residential Rental Revenue and Occupancy Changes................................................................................ | Attachment 4 | |||||||
Sequential Quarterly Residential Rental Revenue and Occupancy Changes.............................................................. | Attachment 5 | |||||||
Full Year Residential Rental Revenue and Occupancy Changes................................................................................. | Attachment 6 | |||||||
Residential Operating Expenses ("Opex").................................................................................................................... | Attachment 7 | |||||||
Development, Joint Venture, Debt Profile and Disposition Activity | ||||||||
Expensed Community Maintenance Costs and Capitalized Community Expenditures................................................ | Attachment 8 | |||||||
Development Communities........................................................................................................................................... | Attachment 9 | |||||||
Unconsolidated Real Estate Investments..................................................................................................................... | Attachment 10 | |||||||
Debt Structure and Select Debt Metrics........................................................................................................................ | Attachment 11 | |||||||
Summary of Disposition Activity.................................................................................................................................... | Attachment 12 | |||||||
Financial Outlook | ||||||||
2023 Financial Outlook................................................................................................................................................. | Attachment 13 | |||||||
Definitions and Reconciliations | ||||||||
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms................................................... | Attachment 14 |
Q4 | Q4 | Full Year | Full Year | |||||||||||||||||||||||||||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||
Rental and other income | $ | 666,394 | $ | 600,494 | 11.0 | % | $ | 2,587,113 | $ | 2,291,766 | 12.9 | % | ||||||||||||||||||||||||||
Management, development and other fees | 3,279 | 703 | 366.4 | % | 6,333 | 3,084 | 105.4 | % | ||||||||||||||||||||||||||||||
Total | 669,673 | 601,197 | 11.4 | % | 2,593,446 | 2,294,850 | 13.0 | % | ||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Direct property operating expenses, excluding property taxes | 127,411 | 115,218 | 10.6 | % | 509,529 | 469,123 | 8.6 | % | ||||||||||||||||||||||||||||||
Property taxes | 72,266 | 70,571 | 2.4 | % | 288,960 | 283,089 | 2.1 | % | ||||||||||||||||||||||||||||||
Total community operating expenses | 199,677 | 185,789 | 7.5 | % | 798,489 | 752,212 | 6.2 | % | ||||||||||||||||||||||||||||||
Property management and other indirect operating expenses | (29,463) | (25,258) | 16.6 | % | (120,625) | (101,730) | 18.6 | % | ||||||||||||||||||||||||||||||
Expensed transaction, development and other pursuit costs, net of recoveries (1) | (6,700) | (1,331) | 403.4 | % | (16,565) | (3,231) | 412.7 | % | ||||||||||||||||||||||||||||||
Interest expense, net (1) | (57,461) | (55,711) | 3.1 | % | (230,074) | (220,415) | 4.4 | % | ||||||||||||||||||||||||||||||
Loss on extinguishment of debt, net | — | (19) | 100.0 | % | (1,646) | (17,787) | (90.7) | % | ||||||||||||||||||||||||||||||
Depreciation expense | (207,232) | (197,036) | 5.2 | % | (814,978) | (758,596) | 7.4 | % | ||||||||||||||||||||||||||||||
General and administrative expense (1) | (20,741) | (16,481) | 25.8 | % | (74,064) | (69,611) | 6.4 | % | ||||||||||||||||||||||||||||||
Casualty loss | — | (2) | 100.0 | % | — | (3,119) | 100.0 | % | ||||||||||||||||||||||||||||||
Income from investments in unconsolidated entities | 6,820 | 5,626 | 21.2 | % | 53,394 | 38,585 | 38.4 | % | ||||||||||||||||||||||||||||||
Gain on sale of communities | 88,065 | 213,881 | (58.8) | % | 555,558 | 602,235 | (7.8) | % | ||||||||||||||||||||||||||||||
Gain on other real estate transactions, net | 4,944 | 95 | N/A | 5,039 | 2,097 | 140.3 | % | |||||||||||||||||||||||||||||||
Net for-sale condominium activity (2) | (381) | 425 | N/A | 88 | (977) | N/A | ||||||||||||||||||||||||||||||||
Income before income taxes | 247,847 | 339,597 | (27.0) | % | 1,151,084 | 1,010,089 | 14.0 | % | ||||||||||||||||||||||||||||||
Income tax expense (1) | (6,683) | (4,299) | 55.5 | % | (14,646) | (5,733) | 155.5 | % | ||||||||||||||||||||||||||||||
Net income | 241,164 | 335,298 | (28.1) | % | 1,136,438 | 1,004,356 | 13.2 | % | ||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | 129 | (89) | N/A | 337 | (57) | N/A | ||||||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 241,293 | $ | 335,209 | (28.0) | % | $ | 1,136,775 | $ | 1,004,299 | 13.2 | % | ||||||||||||||||||||||||||
Net income attributable to common stockholders per common share - basic | $ | 1.72 | $ | 2.40 | (28.3) | % | $ | 8.13 | $ | 7.19 | 13.1 | % | ||||||||||||||||||||||||||
Net income attributable to common stockholders per common share - diluted | $ | 1.72 | $ | 2.40 | (28.3) | % | $ | 8.12 | $ | 7.19 | 12.9 | % | ||||||||||||||||||||||||||
FFO (1) | $ | 359,135 | $ | 317,091 | 13.3 | % | $ | 1,353,732 | $ | 1,135,681 | 19.2 | % | ||||||||||||||||||||||||||
Per common share - diluted | $ | 2.57 | $ | 2.27 | 13.2 | % | $ | 9.67 | $ | 8.13 | 18.9 | % | ||||||||||||||||||||||||||
Core FFO (1) | $ | 363,087 | $ | 317,551 | 14.3 | % | $ | 1,369,999 | $ | 1,153,472 | 18.8 | % | ||||||||||||||||||||||||||
Per common share - diluted | $ | 2.59 | $ | 2.27 | 14.1 | % | $ | 9.79 | $ | 8.26 | 18.5 | % | ||||||||||||||||||||||||||
Dividends declared - common | $ | 222,911 | $ | 222,658 | 0.1 | % | $ | 891,190 | $ | 890,001 | 0.1 | % | ||||||||||||||||||||||||||
Per common share | $ | 1.59 | $ | 1.59 | — | % | $ | 6.36 | $ | 6.36 | — | % | ||||||||||||||||||||||||||
Average shares and participating securities outstanding - basic | 139,956,721 | 139,790,984 | 0.1 | % | 139,891,551 | 139,681,493 | 0.2 | % | ||||||||||||||||||||||||||||||
Average shares outstanding - diluted | 140,007,823 | 139,928,816 | 0.1 | % | 139,975,087 | 139,717,399 | 0.2 | % | ||||||||||||||||||||||||||||||
Total outstanding common shares and operating partnership units | 139,924,364 | 139,759,426 | 0.1 | % | 139,924,364 | 139,759,426 | 0.1 | % |
(1) | Amounts include non-Core items as detailed in Attachment 14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 2. | ||||
(2) | Amounts include $485 and $634 of for-sale condominium marketing, operating and administrative costs and are offset by $104 and $1,059 of gains on for-sale condominiums for the three months ended December 31, 2022 and 2021, respectively. Amounts include $2,129 and $4,087 of for-sale condominium marketing, operating and administrative costs and are offset by $2,217 and $3,110 of gains on for-sale condominiums for the years ended December 31, 2022 and 2021, respectively. See Attachment 14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 2. |
December 31, | December 31, | |||||||||||||
2022 | 2021 | |||||||||||||
Real estate | $ | 24,619,616 | $ | 23,799,947 | ||||||||||
Less accumulated depreciation | (6,878,556) | (6,208,610) | ||||||||||||
Net operating real estate | 17,741,060 | 17,591,337 | ||||||||||||
Construction in progress, including land | 1,072,543 | 807,101 | ||||||||||||
Land held for development | 179,204 | 147,546 | ||||||||||||
For-sale condominium inventory (1) | 32,532 | 146,535 | ||||||||||||
Real estate assets held for sale, net | — | 17,065 | ||||||||||||
Total real estate, net | 19,025,339 | 18,709,584 | ||||||||||||
Cash and cash equivalents | 613,189 | 420,251 | ||||||||||||
Cash in escrow | 121,056 | 123,537 | ||||||||||||
Resident security deposits | 36,815 | 33,757 | ||||||||||||
Investments in unconsolidated entities | 212,084 | 216,390 | ||||||||||||
Other assets | 449,281 | 398,497 | ||||||||||||
Total assets | $ | 20,457,764 | $ | 19,902,016 | ||||||||||
Unsecured notes, net | $ | 7,602,305 | $ | 7,349,394 | ||||||||||
Unsecured credit facility and commercial paper | — | — | ||||||||||||
Notes payable, net | 713,740 | 754,153 | ||||||||||||
Resident security deposits | 63,700 | 59,787 | ||||||||||||
Other liabilities | 821,781 | 802,221 | ||||||||||||
Total liabilities | 9,201,526 | 8,965,555 | ||||||||||||
Redeemable noncontrolling interests | 2,685 | 3,368 | ||||||||||||
Equity | 11,253,553 | 10,933,093 | ||||||||||||
Total liabilities and equity | $ | 20,457,764 | $ | 19,902,016 |
(1) | Consists of the aggregate carrying value of the unsold for-sale residential condominiums of The Park Loggia. |
Total Apartment Homes | Quarter Ended December 31, 2022 | Quarter Ended September 30, 2022 | Quarter Ended June 30, 2022 | Quarter Ended March 31, 2022 | Quarter Ended December 31, 2021 | |||||||||||||||||||||||||||||||||
Residential Rental Revenue (2) | ||||||||||||||||||||||||||||||||||||||
Same Store | 69,493 | $ | 571,828 | $ | 567,890 | $ | 555,528 | $ | 528,879 | $ | 518,381 | |||||||||||||||||||||||||||
Other Stabilized (3) | 7,527 | 54,061 | 50,495 | 45,104 | 41,633 | 37,950 | ||||||||||||||||||||||||||||||||
Development/Redevelopment (4) | 8,733 | 26,883 | 24,436 | 20,796 | 17,176 | 14,545 | ||||||||||||||||||||||||||||||||
Commercial Rental Revenue (2) | N/A | 10,891 | 12,577 | 9,235 | 9,924 | 9,284 | ||||||||||||||||||||||||||||||||
Total Rental Revenue | 85,753 | $ | 663,663 | $ | 655,398 | $ | 630,663 | $ | 597,612 | $ | 580,160 | |||||||||||||||||||||||||||
Residential Operating Expense | ||||||||||||||||||||||||||||||||||||||
Same Store | $ | 171,600 | $ | 179,907 | $ | 168,458 | $ | 165,504 | $ | 158,572 | ||||||||||||||||||||||||||||
Other Stabilized (3) | 17,824 | 17,814 | 14,668 | 15,178 | 13,160 | |||||||||||||||||||||||||||||||||
Development/Redevelopment | 8,238 | 8,132 | 6,879 | 5,177 | 5,216 | |||||||||||||||||||||||||||||||||
Commercial Operating Expense | 1,649 | 1,572 | 1,562 | 1,700 | 1,339 | |||||||||||||||||||||||||||||||||
Total Operating Expense | $ | 199,311 | $ | 207,425 | $ | 191,567 | $ | 187,559 | $ | 178,287 | ||||||||||||||||||||||||||||
Residential NOI (5) | ||||||||||||||||||||||||||||||||||||||
Same Store | $ | 400,722 | $ | 388,397 | $ | 387,555 | $ | 363,716 | $ | 360,149 | ||||||||||||||||||||||||||||
Other Stabilized (3) | 37,095 | 33,432 | 30,973 | 26,846 | 25,081 | |||||||||||||||||||||||||||||||||
Development/Redevelopment | 18,656 | 16,318 | 13,925 | 12,007 | 9,338 | |||||||||||||||||||||||||||||||||
Commercial NOI (5) | 9,242 | 11,005 | 7,673 | 8,224 | 7,945 | |||||||||||||||||||||||||||||||||
Total NOI | $ | 465,715 | $ | 449,152 | $ | 440,126 | $ | 410,793 | $ | 402,513 | ||||||||||||||||||||||||||||
Same Store Average Rental Revenue per Occupied Home (6) | $ | 2,861 | $ | 2,839 | $ | 2,766 | $ | 2,634 | $ | 2,586 | ||||||||||||||||||||||||||||
Same Store Economic Occupancy | 95.9 | % | 96.0 | % | 96.4 | % | 96.3 | % | 96.2 | % | ||||||||||||||||||||||||||||
Same Store Turnover (7) | ||||||||||||||||||||||||||||||||||||||
Current year period / Prior year period | 38.8% / 37.5% | 55.0% / 55.8% | 46.8% / 50.8% | 35.3% / 44.2% | 37.5% / 47.9% | |||||||||||||||||||||||||||||||||
Current year / Prior year | 44.0% / 47.1% | 47.1% / 52.7% |
SAME STORE LIKE-TERM EFFECTIVE RENT CHANGE (5) | ||||||||||||||||||||||||||
October 2022 | November 2022 | December 2022 | January 2023 | |||||||||||||||||||||||
New England | 7.0 | % | 4.6 | % | 3.9 | % | 4.9 | % | ||||||||||||||||||
Metro NY/NJ | 8.8 | % | 7.3 | % | 5.4 | % | 5.7 | % | ||||||||||||||||||
Mid-Atlantic | 6.2 | % | 5.8 | % | 4.9 | % | 2.3 | % | ||||||||||||||||||
Southeast FL | 7.4 | % | 7.9 | % | 8.9 | % | 7.3 | % | ||||||||||||||||||
Denver, CO | 5.3 | % | 4.6 | % | 2.5 | % | 1.9 | % | ||||||||||||||||||
Pacific NW | 5.2 | % | 2.7 | % | 1.1 | % | 3.0 | % | ||||||||||||||||||
N. California | 3.8 | % | 3.4 | % | 2.5 | % | 2.6 | % | ||||||||||||||||||
S. California | 5.2 | % | 5.3 | % | 2.6 | % | 2.4 | % | ||||||||||||||||||
Total | 6.2 | % | 5.1 | % | 3.6 | % | 3.6 | % |
(1) | Includes consolidated communities and excludes communities that have been sold or that are classified as held for sale. | ||||
(2) | Rental revenue excludes non-qualified REIT income. | ||||
(3) | Results for these communities prior to January 1, 2022 may reflect operations prior to stabilization, including lease-up, such that occupancy is not stabilized. | ||||
(4) | For per home rent projections and Economic Occupancy for Development communities currently under construction, see Attachment 9 - Development Communities. | ||||
(5) | See Attachment 14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. | ||||
(6) | Reflects the effect of Residential concessions amortized over the average lease term and includes uncollectible lease revenue and revenue from government rent relief programs. | ||||
(7) | Turnover is the annualized number of units turned over during the period, divided by the total number of Same Store apartment homes for the respective period. |
Apartment Homes | Average Monthly Rental Revenue Per Occupied Home | Economic Occupancy | Residential Rental Revenue ($000s)(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
% Change Excluding Rent Relief (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q4 22 | Q4 21 | % Change | Q4 22 | Q4 21 | % Change | Q4 22 | Q4 21 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New England | 9,618 | $ | 3,206 | $ | 2,827 | 13.4 | % | 96.7 | % | 96.8 | % | (0.1) | % | $ | 89,478 | $ | 78,967 | 13.3 | % | 14.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Metro NY/NJ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New York City, NY | 3,788 | 3,936 | 3,321 | 18.5 | % | 97.0 | % | 96.9 | % | 0.1 | % | 43,402 | 36,602 | 18.6 | % | 19.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
New York - Suburban | 3,202 | 3,595 | 3,368 | 6.7 | % | 95.3 | % | 96.2 | % | (0.9) | % | 32,907 | 31,097 | 5.8 | % | 7.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
New Jersey | 4,651 | 3,286 | 2,837 | 15.8 | % | 96.3 | % | 97.6 | % | (1.3) | % | 44,157 | 38,567 | 14.5 | % | 15.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Metro NY/NJ | 11,641 | 3,583 | 3,139 | 14.1 | % | 96.3 | % | 97.0 | % | (0.7) | % | 120,466 | 106,266 | 13.4 | % | 14.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Washington Metro | 11,015 | 2,411 | 2,211 | 9.0 | % | 94.8 | % | 95.3 | % | (0.5) | % | 75,562 | 69,617 | 8.5 | % | 9.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Baltimore, MD | 1,562 | 2,035 | 1,875 | 8.5 | % | 95.8 | % | 97.4 | % | (1.6) | % | 9,139 | 8,546 | 6.9 | % | 7.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mid-Atlantic | 12,577 | 2,364 | 2,170 | 8.9 | % | 95.0 | % | 95.5 | % | (0.5) | % | 84,701 | 78,163 | 8.4 | % | 9.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Southeast FL | 1,214 | 2,861 | 2,426 | 17.9 | % | 96.7 | % | 97.2 | % | (0.5) | % | 10,082 | 8,589 | 17.4 | % | 18.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Denver, CO | 1,086 | 2,246 | 1,995 | 12.6 | % | 95.4 | % | 94.8 | % | 0.6 | % | 6,979 | 6,166 | 13.2 | % | 12.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pacific Northwest | 4,807 | 2,638 | 2,313 | 14.1 | % | 94.5 | % | 94.4 | % | 0.1 | % | 35,953 | 31,487 | 14.2 | % | 14.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Northern California | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
San Jose, CA | 4,723 | 2,918 | 2,619 | 11.4 | % | 95.6 | % | 96.5 | % | (0.9) | % | 39,521 | 35,750 | 10.5 | % | 11.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Oakland - East Bay, CA | 4,138 | 2,647 | 2,474 | 7.0 | % | 96.2 | % | 95.9 | % | 0.3 | % | 31,596 | 29,453 | 7.3 | % | 8.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
San Francisco, CA | 3,267 | 3,325 | 2,998 | 10.9 | % | 95.8 | % | 95.5 | % | 0.3 | % | 31,207 | 28,062 | 11.2 | % | 13.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Northern California | 12,128 | 2,935 | 2,670 | 9.9 | % | 95.8 | % | 96.0 | % | (0.2) | % | 102,324 | 93,265 | 9.7 | % | 11.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Southern California | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | 11,284 | 2,543 | 2,462 | 3.3 | % | 96.2 | % | 95.9 | % | 0.3 | % | 82,822 | 79,910 | 3.6 | % | 15.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Orange County, CA | 3,371 | 2,647 | 2,388 | 10.8 | % | 94.8 | % | 96.3 | % | (1.5) | % | 25,391 | 23,240 | 9.3 | % | 12.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
San Diego, CA | 1,767 | 2,685 | 2,414 | 11.2 | % | 95.8 | % | 96.4 | % | (0.6) | % | 13,632 | 12,328 | 10.6 | % | 13.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Southern California | 16,422 | 2,579 | 2,442 | 5.6 | % | 95.9 | % | 96.0 | % | (0.1) | % | 121,845 | 115,478 | 5.5 | % | 14.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Same Store | 69,493 | $ | 2,861 | $ | 2,586 | 10.6 | % | 95.9 | % | 96.2 | % | (0.3) | % | $ | 571,828 | $ | 518,381 | 10.3 | % | 13.1 | % |
Apartment Homes | Average Monthly Rental Revenue Per Occupied Home | Economic Occupancy | Residential Rental Revenue ($000s)(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
% Change Excluding Rent Relief (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q4 22 | Q3 22 | % Change | Q4 22 | Q3 22 | % Change | Q4 22 | Q3 22 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New England | 9,618 | $ | 3,206 | $ | 3,166 | 1.3 | % | 96.7 | % | 96.9 | % | (0.2) | % | $ | 89,478 | $ | 88,490 | 1.1 | % | 1.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Metro NY/NJ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New York City, NY | 3,788 | 3,936 | 3,871 | 1.7 | % | 97.0 | % | 97.2 | % | (0.2) | % | 43,402 | 42,777 | 1.5 | % | 2.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
New York - Suburban | 3,202 | 3,595 | 3,585 | 0.3 | % | 95.3 | % | 94.6 | % | 0.7 | % | 32,907 | 32,566 | 1.0 | % | 2.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
New Jersey | 4,651 | 3,286 | 3,255 | 1.0 | % | 96.3 | % | 96.0 | % | 0.3 | % | 44,157 | 43,581 | 1.3 | % | 0.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Metro NY/NJ | 11,641 | 3,583 | 3,546 | 1.0 | % | 96.3 | % | 96.0 | % | 0.3 | % | 120,466 | 118,924 | 1.3 | % | 1.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Washington Metro | 11,015 | 2,411 | 2,400 | 0.5 | % | 94.8 | % | 94.9 | % | (0.1) | % | 75,562 | 75,271 | 0.4 | % | 0.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Baltimore, MD | 1,562 | 2,035 | 2,017 | 0.9 | % | 95.8 | % | 96.1 | % | (0.3) | % | 9,139 | 9,087 | 0.6 | % | 0.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mid-Atlantic | 12,577 | 2,364 | 2,352 | 0.5 | % | 95.0 | % | 95.1 | % | (0.1) | % | 84,701 | 84,358 | 0.4 | % | 0.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Southeast FL | 1,214 | 2,861 | 2,784 | 2.8 | % | 96.7 | % | 94.9 | % | 1.8 | % | 10,082 | 9,642 | 4.6 | % | 4.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Denver, CO | 1,086 | 2,246 | 2,210 | 1.6 | % | 95.4 | % | 95.7 | % | (0.3) | % | 6,979 | 6,891 | 1.3 | % | 0.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pacific Northwest | 4,807 | 2,638 | 2,642 | (0.2) | % | 94.5 | % | 95.1 | % | (0.6) | % | 35,953 | 36,232 | (0.8) | % | (0.7) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Northern California | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
San Jose, CA | 4,723 | 2,918 | 2,897 | 0.7 | % | 95.6 | % | 95.6 | % | 0.0 | % | 39,521 | 39,255 | 0.7 | % | 1.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Oakland - East Bay, CA | 4,138 | 2,647 | 2,666 | (0.7) | % | 96.2 | % | 96.0 | % | 0.2 | % | 31,596 | 31,757 | (0.5) | % | 0.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
San Francisco, CA | 3,267 | 3,325 | 3,277 | 1.5 | % | 95.8 | % | 95.4 | % | 0.4 | % | 31,207 | 30,633 | 1.9 | % | 2.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Northern California | 12,128 | 2,935 | 2,918 | 0.6 | % | 95.8 | % | 95.7 | % | 0.1 | % | 102,324 | 101,645 | 0.7 | % | 1.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Southern California | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | 11,284 | 2,543 | 2,544 | 0.0 | % | 96.2 | % | 96.5 | % | (0.3) | % | 82,822 | 83,082 | (0.3) | % | 1.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Orange County, CA | 3,371 | 2,647 | 2,567 | 3.1 | % | 94.8 | % | 95.9 | % | (1.1) | % | 25,391 | 24,892 | 2.0 | % | 2.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
San Diego, CA | 1,767 | 2,685 | 2,658 | 1.0 | % | 95.8 | % | 97.5 | % | (1.7) | % | 13,632 | 13,734 | (0.7) | % | 0.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Southern California | 16,422 | 2,579 | 2,561 | 0.7 | % | 95.9 | % | 96.5 | % | (0.6) | % | 121,845 | 121,708 | 0.1 | % | 1.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Same Store | 69,493 | $ | 2,861 | $ | 2,839 | 0.8 | % | 95.9 | % | 96.0 | % | (0.1) | % | $ | 571,828 | $ | 567,890 | 0.7 | % | 1.2 | % |
Apartment Homes | Average Monthly Rental Revenue Per Occupied Home | Economic Occupancy | Residential Rental Revenue ($000s)(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
% Change Excluding Rent Relief (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Full Year 2022 | Full Year 2021 | % Change | Full Year 2022 | Full Year 2021 | % Change | Full Year 2022 | Full Year 2021 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New England | 9,618 | $ | 3,064 | $ | 2,744 | 11.7 | % | 97.0 | % | 96.2 | % | 0.8 | % | $ | 343,179 | $ | 305,040 | 12.5 | % | 12.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Metro NY/NJ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New York City, NY | 3,788 | 3,717 | 3,222 | 15.4 | % | 97.2 | % | 96.7 | % | 0.5 | % | 164,170 | 141,699 | 15.9 | % | 15.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
New York - Suburban | 3,202 | 3,511 | 3,253 | 7.9 | % | 95.3 | % | 95.9 | % | (0.6) | % | 128,535 | 119,741 | 7.3 | % | 6.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
New Jersey | 4,651 | 3,123 | 2,768 | 12.8 | % | 96.4 | % | 96.6 | % | (0.2) | % | 168,069 | 149,286 | 12.6 | % | 12.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Metro NY/NJ | 11,641 | 3,423 | 3,048 | 12.3 | % | 96.4 | % | 96.5 | % | (0.1) | % | 460,774 | 410,726 | 12.2 | % | 12.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mid-Atlantic | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Washington Metro | 11,015 | 2,343 | 2,186 | 7.2 | % | 95.1 | % | 95.0 | % | 0.1 | % | 294,552 | 274,425 | 7.3 | % | 7.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Baltimore, MD | 1,562 | 1,976 | 1,816 | 8.8 | % | 96.5 | % | 97.4 | % | (0.9) | % | 35,720 | 33,104 | 7.9 | % | 7.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mid-Atlantic | 12,577 | 2,297 | 2,140 | 7.3 | % | 95.3 | % | 95.2 | % | 0.1 | % | 330,272 | 307,529 | 7.4 | % | 7.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Southeast FL | 1,214 | 2,734 | 2,253 | 21.3 | % | 95.9 | % | 96.5 | % | (0.6) | % | 38,206 | 31,644 | 20.7 | % | 19.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Denver, CO | 1,086 | 2,151 | 1,896 | 13.4 | % | 95.8 | % | 96.1 | % | (0.3) | % | 26,845 | 23,739 | 13.1 | % | 12.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pacific Northwest | 4,807 | 2,555 | 2,218 | 15.2 | % | 95.2 | % | 95.1 | % | 0.1 | % | 140,384 | 121,791 | 15.3 | % | 15.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Northern California | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
San Jose, CA | 4,723 | 2,827 | 2,605 | 8.5 | % | 96.0 | % | 96.3 | % | (0.3) | % | 153,887 | 142,172 | 8.2 | % | 8.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Oakland - East Bay, CA | 4,138 | 2,600 | 2,449 | 6.2 | % | 96.1 | % | 95.9 | % | 0.2 | % | 124,085 | 116,633 | 6.4 | % | 5.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
San Francisco, CA | 3,267 | 3,237 | 2,928 | 10.6 | % | 95.5 | % | 95.5 | % | 0.0 | % | 121,180 | 109,614 | 10.6 | % | 10.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Northern California | 12,128 | 2,860 | 2,640 | 8.3 | % | 95.9 | % | 95.9 | % | 0.0 | % | 399,152 | 368,419 | 8.3 | % | 8.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Southern California | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | 11,284 | 2,550 | 2,304 | 10.7 | % | 96.4 | % | 96.3 | % | 0.1 | % | 333,002 | 300,519 | 10.8 | % | 10.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Orange County, CA | 3,371 | 2,552 | 2,270 | 12.4 | % | 96.0 | % | 96.9 | % | (0.9) | % | 99,077 | 88,854 | 11.5 | % | 11.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
San Diego, CA | 1,767 | 2,591 | 2,295 | 12.9 | % | 96.9 | % | 96.9 | % | 0.0 | % | 53,234 | 47,172 | 12.9 | % | 13.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Southern California | 16,422 | 2,555 | 2,296 | 11.3 | % | 96.4 | % | 96.5 | % | (0.1) | % | 485,313 | 436,545 | 11.2 | % | 11.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Same Store | 69,493 | $ | 2,774 | $ | 2,504 | 10.8 | % | 96.1 | % | 96.0 | % | 0.1 | % | $ | 2,224,125 | $ | 2,005,433 | 10.9 | % | 10.8 | % |
Q4 2022 | Q4 2021 | % Change | Q4 2022 % of Total Opex | Full Year 2022 | Full Year 2021 | % Change | Full Year 2022 % of Total Opex | |||||||||||||||||||||||||||||||||||||||||||
Property taxes (2) | $ | 61,366 | $ | 58,589 | 4.7 | % | 35.8 | % | $ | 242,742 | $ | 236,898 | 2.5 | % | 35.4 | % | ||||||||||||||||||||||||||||||||||
Payroll (3) | 35,203 | 32,800 | 7.3 | % | 20.5 | % | 143,525 | 140,325 | 2.3 | % | 20.9 | % | ||||||||||||||||||||||||||||||||||||||
Repairs & maintenance (4) | 29,959 | 27,147 | 10.4 | % | 17.4 | % | 121,846 | 113,398 | 7.4 | % | 17.8 | % | ||||||||||||||||||||||||||||||||||||||
Utilities (5) | 19,941 | 15,907 | 25.4 | % | 11.6 | % | 74,894 | 62,272 | 20.3 | % | 10.9 | % | ||||||||||||||||||||||||||||||||||||||
Office operations (6) | 16,134 | 13,470 | 19.8 | % | 9.4 | % | 61,503 | 51,522 | 19.4 | % | 9.0 | % | ||||||||||||||||||||||||||||||||||||||
Insurance (7) | 5,994 | 7,057 | (15.1) | % | 3.5 | % | 27,935 | 27,961 | (0.1) | % | 4.1 | % | ||||||||||||||||||||||||||||||||||||||
Marketing (8) | 3,003 | 3,602 | (16.6) | % | 1.8 | % | 13,024 | 14,078 | (7.5) | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||||
Total Same Store Residential Operating Expenses | $ | 171,600 | $ | 158,572 | 8.2 | % | 100.0 | % | $ | 685,469 | $ | 646,454 | 6.0 | % | 100.0 | % |
(1) | Same Store operating expenses exclude indirect costs for corporate-level property management and other support-related expenses. | ||||
(2) | Property taxes increased for the three months and year ended December 31, 2022 over the prior year periods due to (i) increased assessments across the portfolio and (ii) the expiration of property tax incentive programs at certain of our properties in New York City. The increase for the year ended December 31, 2022 is partially offset by successful appeals in the current year in excess of the prior year. The expiration of property tax incentive programs represents $1,130 or 41% of the 4.7% increase in property taxes for the three months ended December 31, 2022 and $3,898 or 67% of the 2.5% increase in property taxes for the year ended December 31, 2022. | ||||
(3) | Payroll costs increased for the three months and year ended December 31, 2022 over the prior year periods primarily due to a refundable payroll tax credit in the prior year periods, merit increases, benefits costs and maintenance overtime, partially offset by a reduction in on-site leasing and administrative personnel. | ||||
(4) | Repairs and maintenance increased for the three months and year ended December 31, 2022 over the prior year periods due to increased turnover costs as well as common area amenities which re-opened in 2022 and a decrease in rebates as compared to the prior year periods. | ||||
(5) | Utilities represents aggregate utility costs, net of resident reimbursements. The increases for the three months and year ended December 31, 2022 over the prior year periods are primarily due to the Company’s implementation of a bulk internet offering at its communities, which is more than offset by bulk internet revenue, as well as increases in electricity rates and trash removal. The increase for the year ended December 31, 2022 is also due to increased gas rates, water and sewer charges and a refund for water and sewer in the prior year not present in the current year. | ||||
(6) | Office operations includes administrative costs, legal and eviction costs, land lease expense and association and license fees. The increases for the three months and year ended December 31, 2022 over the prior year periods are primarily due to (i) bad debt expense associated with amounts due from residents for utility reimbursements, damage receipts and other related items, (ii) credit card fees (which are offset in revenue) and (iii) furnished housing furniture rental costs which are more than offset by furnished housing revenue premiums. The increase for the year ended December 31, 2022 over the prior year is also due to government licenses and association fees in Northern California. | ||||
(7) | Insurance is composed of premiums, expected claims activity and associated reductions from receipt of claims recoveries. The decrease for the three months ended December 31, 2022 from the prior year period is due to the timing of claims, partially offset by increased property insurance premiums. Insurance costs can be variable due to the amounts and timing of estimated and actual claim activity and the related recoveries received. | ||||
(8) | Marketing costs decreased for the three months and year ended December 31, 2022 from the prior year period due to decreased internet advertising costs and third-party call center costs. | ||||
Full Year 2022 Maintenance Expensed Per Home | Categorization of Full Year 2022 Additional Capitalized Value (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Communities | Apartment Homes (1) | Carpet Replacement | Other Maintenance (3) | Total | Acquisitions, Construction, Redevelopment & Dispositions (4) | NOI Enhancing (5) | Asset Preservation | 2022 Additional Capitalized Value | NOI Enhancing Per Home | Asset Preservation Per Home | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | 69,493 | $ | 122 | $ | 2,709 | $ | 2,831 | $ | 62,448 | (6) | $ | 37,647 | $ | 109,512 | $ | 209,607 | $ | 542 | $ | 1,576 | ||||||||||||||||||||||||||||||||||||||||||
Other Stabilized | 7,527 | 44 | 2,102 | 2,146 | 547,802 | (7) | 413 | 2,662 | 550,877 | $ | 55 | $ | 354 | |||||||||||||||||||||||||||||||||||||||||||||||||
Development/Redevelopment (8) | 8,733 | 22 | 787 | 809 | 816,630 | — | — | 816,630 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dispositions (9) | — | — | — | — | (622,722) | — | — | (622,722) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 85,753 | $ | 105 | $ | 2,460 | $ | 2,565 | $ | 804,158 | $ | 38,060 | $ | 112,174 | $ | 954,392 | N/A | N/A |
(1) | Includes consolidated communities and excludes communities that have been sold or that are classified as held for sale. | |||||||
(2) | Expenditures are capitalized for the acquisition or development of new assets or for expenditures that extend the life of existing assets and benefit the Company for periods greater than a year. | |||||||
(3) | Other maintenance includes maintenance, landscaping and redecorating costs, as well as maintenance related payroll expense. | |||||||
(4) | Includes the write-off of impaired assets and additional capitalized expenditures related to recognized casualty losses, if applicable. | |||||||
(5) | This Attachment excludes capitalized expenditures for the commercial component of communities, which the Company classifies as NOI Enhancing. Same Store and Other Stabilized exclude $748 and $8,902, respectively, related to commercial space. | |||||||
(6) | Consists primarily of expenditures for communities under redevelopment that have remained in Same Store with stabilized occupancy. | |||||||
(7) | Represents acquired communities coupled with commitment close-outs and construction true-ups on recently constructed communities. | |||||||
(8) | Includes communities under construction/reconstruction during the period, including communities where construction/reconstruction is complete. | |||||||
(9) | Includes The Park Loggia condominium sales. |
Other Capitalized Costs | ||||||||
Interest | Overhead | |||||||
Q4 2022 | $ | 10,430 | $ | 11,600 | ||||
Q3 2022 | $ | 9,131 | $ | 12,934 | ||||
Q2 2022 | $ | 8,193 | $ | 13,417 | ||||
Q1 2022 | $ | 7,100 | $ | 12,088 |
Community Information | Number | Total | Actual/Projected Schedule | Avg | % | % | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of | Capital | Full Qtr | Monthly | Complete | Leased | Occupied | Economic | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Apt | Cost | Initial | Stabilized | Rental Rev | Occ. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Development Name | Location | Homes | (millions) | Start | Occupancy | Complete | Ops | Per Home | As of January 12, 2023 | Q4 '22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Communities Under Construction: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. | Avalon Harrison (1) | Harrison, NY | 143 | $ | 94 | Q4 2018 | Q3 2021 | Q2 2023 | Q3 2023 | $ | 4,070 | 58 | % | 54 | % | 52 | % | 52 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2. | Avalon Somerville Station | Somerville, NJ | 374 | 122 | Q4 2020 | Q2 2022 | Q3 2023 | Q1 2024 | 3,070 | 68 | % | 59 | % | 53 | % | 42 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. | Avalon North Andover | North Andover, MA | 221 | 78 | Q2 2021 | Q4 2022 | Q3 2023 | Q4 2023 | 2,665 | 57 | % | 38 | % | 31 | % | 21 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4. | Avalon Brighton | Boston, MA | 180 | 89 | Q2 2021 | Q1 2023 | Q2 2023 | Q4 2023 | 3,315 | — | 1 | % | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5. | Avalon Merrick Park | Miami, FL | 254 | 101 | Q2 2021 | Q1 2023 | Q2 2023 | Q1 2024 | 2,835 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6. | Avalon Amityville I | Amityville, NY | 338 | 135 | Q2 2021 | Q4 2023 | Q2 2024 | Q4 2024 | 3,110 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7. | Avalon Bothell Commons I | Bothell, WA | 467 | 236 | Q2 2021 | Q3 2023 | Q3 2024 | Q2 2025 | 2,965 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8. | Avalon Westminster Promenade | Westminster, CO | 312 | 110 | Q3 2021 | Q1 2024 | Q2 2024 | Q1 2025 | 2,130 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9. | Avalon West Dublin | Dublin, CA | 499 | 270 | Q3 2021 | Q4 2023 | Q1 2025 | Q2 2025 | 3,245 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10. | Avalon Princeton Circle | Princeton, NJ | 221 | 88 | Q4 2021 | Q2 2023 | Q1 2024 | Q3 2024 | 3,565 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11. | Avalon Montville | Montville, NJ | 349 | 127 | Q4 2021 | Q4 2023 | Q3 2024 | Q4 2024 | 2,895 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12. | Avalon Redmond Campus (2) | Redmond, WA | 214 | 80 | Q4 2021 | Q3 2023 | Q1 2024 | Q3 2024 | 2,795 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13. | Avalon Governor's Park | Denver, CO | 304 | 135 | Q1 2022 | Q2 2024 | Q3 2024 | Q2 2025 | 2,690 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14. | Avalon West Windsor (1) | West Windsor, NJ | 535 | 201 | Q2 2022 | Q3 2024 | Q4 2025 | Q2 2026 | 2,995 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15. | Avalon Durham | Durham, NC | 336 | 125 | Q2 2022 | Q2 2024 | Q3 2024 | Q2 2025 | 2,270 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16. | Avalon Annapolis | Annapolis, MD | 508 | 202 | Q3 2022 | Q3 2024 | Q3 2025 | Q2 2026 | 2,700 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17. | Kanso Milford | Milford, MA | 162 | 66 | Q4 2022 | Q1 2024 | Q3 2024 | Q1 2025 | 2,590 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total / Weighted Average Under Construction | 5,417 | $ | 2,259 | $ | 2,900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Communities Completed this Quarter: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. | Avalon Harbor Isle | Island Park, NY | 172 | $ | 94 | Q4 2020 | Q2 2022 | Q4 2022 | Q2 2023 | $ | 4,720 | 100 | % | 70 | % | 69 | % | 50 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Communities Completed Subtotal/Weighted Average | 172 | $ | 94 | $ | 4,720 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average Under Construction and Completed this quarter | 5,589 | $ | 2,353 | $ | 2,815 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Weighted Average Projected NOI as a % of Total Capital Cost | 5.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Cost Basis (millions) (3): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital Cost, under construction and completed | $ | 2,353 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital Cost, disbursed to date | (1,183) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital Cost, remaining to invest | $ | 1,170 |
(1) | Developments containing at least 10,000 square feet of commercial space include Avalon Harrison (27,000 sf) and Avalon West Windsor (19,000 sf). | ||||
(2) | Avalon Redmond Campus is a densification of the Company's existing eaves Redmond Campus wholly-owned community, where 48 existing older apartment homes were demolished and are being replaced by Avalon Redmond Campus. As a densification, this community is excluded from the weighted average projected NOI as a % of Total Capital Cost. | ||||
(3) | Q4 2022 total NOI for the 18 communities presented was $2.4 million. | ||||
Operating Communities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOI (1)(2) | Debt | Disposition Gains and Other Activity (1)(4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
AVB | Apartment | Q4 | Full Year | Principal | Interest | Q4 | Full Year | |||||||||||||||||||||||||||||||||||||||||||||||||
Venture | Communities | Ownership | Homes | 2022 | 2022 | Amount (1) | Rate (3) | 2022 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
NYTA MF Investors LLC | 5 | 20.0 | % | 1,301 | $ | 10,255 | $ | 39,325 | $ | 395,189 | 3.88 | % | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||
Archstone Multifamily Partners AC LP (the "U.S. Fund") | — | 28.6 | % | — | — | 8,042 | — | — | % | — | 137,642 | |||||||||||||||||||||||||||||||||||||||||||||
MVP I, LLC | 1 | 25.0 | % | 313 | 2,111 | 8,094 | 103,000 | 3.24 | % | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Brandywine Apartments of Maryland, LLC | 1 | 28.7 | % | 305 | 1,236 | 4,119 | 19,731 | 3.40 | % | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Avalon Alderwood MF, LLC | 1 | 50.0 | % | 328 | 1,687 | 4,426 | — | — | % | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total Unconsolidated Real Estate Investments | 8 | 2,247 | $ | 15,289 | $ | 64,006 | $ | 517,920 | 3.73 | % | $ | — | $ | 137,642 |
Development Communities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Avg | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital | Projected | Monthly | Complete | |||||||||||||||||||||||||||||||||||||||||||||||||||||
AVB | Apartment | Cost | Initial | Rental Rev | As of January 12, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Venture | Location | Ownership | Homes | (millions) (1) | Start | Occupancy | Complete | Per Home | ||||||||||||||||||||||||||||||||||||||||||||||||
Under Construction: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arts District Joint Venture (5) | Los Angeles, CA | 25.0 | % | 475 | $ | 276 | Q3 2020 | Q3 2023 | Q4 2023 | $ | 3,360 | — |
DEBT COMPOSITION AND MATURITIES | |||||||||||||||||||||||||||||||||||
Average Interest Rate (1) | Principal Amortization Payments and Maturities (2) | ||||||||||||||||||||||||||||||||||
Debt Composition | Amount | Year | Secured notes amortization and maturities | Unsecured notes maturities | Total | ||||||||||||||||||||||||||||||
Secured notes | 2023 | $ | 8,300 | $ | 600,000 | $ | 608,300 | ||||||||||||||||||||||||||||
Fixed rate | $ | 270,677 | 3.4 | % | 2024 | 9,100 | 450,000 | 459,100 | |||||||||||||||||||||||||||
Variable rate | 457,150 | 5.3 | % | 2025 | 9,700 | 825,000 | 834,700 | ||||||||||||||||||||||||||||
Subtotal, secured notes | 727,827 | 4.6 | % | 2026 | 10,600 | 775,000 | 785,600 | ||||||||||||||||||||||||||||
2027 | 249,000 | 400,000 | 649,000 | ||||||||||||||||||||||||||||||||
Unsecured notes | 2028 | 17,600 | 850,000 | 867,600 | |||||||||||||||||||||||||||||||
Fixed rate | 7,500,000 | 3.3 | % | 2029 | 74,750 | 450,000 | 524,750 | ||||||||||||||||||||||||||||
Variable rate | 150,000 | 5.4 | % | 2030 | 9,000 | 700,000 | 709,000 | ||||||||||||||||||||||||||||
Subtotal, unsecured notes | 7,650,000 | 3.3 | % | 2031 | 9,600 | 600,000 | 609,600 | ||||||||||||||||||||||||||||
2032 | 10,300 | 700,000 | 710,300 | ||||||||||||||||||||||||||||||||
Variable rate facility (3) | — | — | % | Thereafter | 319,877 | 1,300,000 | 1,619,877 | ||||||||||||||||||||||||||||
Commercial paper (3) | — | — | % | $ | 727,827 | $ | 7,650,000 | $ | 8,377,827 | ||||||||||||||||||||||||||
Total Debt | $ | 8,377,827 | 3.4 | % |
SELECT DEBT METRICS | ||||||||||||||||||||||||||||||||
Q4 2022 Net Debt-to-Core EBITDAre (4) | 4.5x | Q4 2022 Interest Coverage (4) | 7.2x | Full Year 2022 Unencumbered NOI (4) | 95% | Weighted avg years to maturity of total debt (2) | 7.9 |
DEBT COVENANT COMPLIANCE | |||||||||||||||||||||||||||||
Unsecured Line of Credit Covenants | December 31, 2022 | Requirement | |||||||||||||||||||||||||||
Total Outstanding Indebtedness to Capitalization Value (5) | 26.9 | % | < | 65% | |||||||||||||||||||||||||
Combined EBITDA to Combined Debt Service | 6.15x | > | 1.50x | ||||||||||||||||||||||||||
Unsecured Indebtedness to Unencumbered Asset Value | 25.1 | % | < | 65% | |||||||||||||||||||||||||
Secured Indebtedness to Capitalization Value (5) | 2.9 | % | < | 40% | |||||||||||||||||||||||||
Unsecured Senior Notes Covenants (6) | December 31, 2022 | Requirement | |||||||||||||||||||||||||||
Total Outstanding Indebtedness to Total Assets (7) | 31.8 | % | < | 65% | |||||||||||||||||||||||||
Secured Indebtedness to Total Assets (7) | 2.7 | % | < | 40% | |||||||||||||||||||||||||
Unencumbered Assets to Unsecured Indebtedness | 326.1 | % | > | 150% | |||||||||||||||||||||||||
Consolidated Income Available for Debt Service to the Annual Service Charge | 6.47x | > | 1.50x |
(1) | Rates are as of December 31, 2022 and, for secured and unsecured notes, include costs of financing such as credit enhancement fees, trustees' fees, the impact of interest rate hedges and mark-to-market adjustments. | ||||
(2) | Excludes the Company's (i) Credit Facility, (ii) commercial paper and (iii) any associated issuance discount, mark-to-market discounts and deferred financing costs, if applicable. | ||||
(3) | Represents amounts outstanding at December 31, 2022 under the Company's (i) $2.25 billion Credit Facility and (ii) $500 million unsecured commercial paper program, which is backstopped by, and reduces the borrowing capacity of, the Credit Facility. | ||||
(4) | See Attachment 14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. | ||||
(5) | Capitalization Value represents the Company’s Combined EBITDA for operating communities that the Company has owned for at least 12 months as of December 31, 2022, capitalized at a rate of 5.75% per annum, plus the book value of Development communities and real estate communities acquired. For discussion of other defined terms, see "Debt Covenant Compliance" in Attachment 14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. | ||||
(6) | The information about the Company’s unsecured senior notes covenants shows compliance with selected covenants under the Company’s 1998 Indenture, under which debt securities are outstanding with maturity dates through 2047, subject to prepayment or redemption at the Company’s election. See “Debt Covenant Compliance” in Attachment 14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. Different covenants apply to debt securities outstanding under the Company’s 2018 Indenture. | ||||
(7) | Total Assets represents the sum of the Company's undepreciated real estate assets and other assets, excluding accounts receivable. See "Debt Covenant Compliance" in Attachment 14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. |
Weighted Average | Accumulated | Weighted Average | Weighted Average | |||||||||||||||||||||||||||||||||||||||||
Number of | Investment Period | Gross Sales | Depreciation | Economic | Market | Unleveraged | ||||||||||||||||||||||||||||||||||||||
Communities Sold | (Years) | Price | GAAP Gain | and Other | Gain (2) | Cap Rate | IRR | |||||||||||||||||||||||||||||||||||||
2013 - 2017: | ||||||||||||||||||||||||||||||||||||||||||||
28 Communities (3) | 12.5 | $ | 2,492,850 | $ | 1,121,458 | $ | 381,182 | $ | 740,276 | 5.1% | 12.5% | |||||||||||||||||||||||||||||||||
2018: | ||||||||||||||||||||||||||||||||||||||||||||
8 Communities (4) | 6.7 | $ | 618,750 | $ | 195,115 | $ | 102,170 | $ | 92,945 | 4.6% | 7.6% | |||||||||||||||||||||||||||||||||
2019: | ||||||||||||||||||||||||||||||||||||||||||||
6 Communities | 9.8 | $ | 427,600 | $ | 166,105 | $ | 95,233 | $ | 70,872 | 4.6% | 8.2% | |||||||||||||||||||||||||||||||||
2020: | ||||||||||||||||||||||||||||||||||||||||||||
9 Communities | 14.0 | $ | 627,750 | $ | 340,444 | $ | 129,743 | $ | 210,701 | 4.4% | 10.8% | |||||||||||||||||||||||||||||||||
2021: | ||||||||||||||||||||||||||||||||||||||||||||
9 Communities | 21.9 | $ | 867,200 | $ | 602,235 | $ | 257,542 | $ | 344,693 | 3.7% | 10.5% | |||||||||||||||||||||||||||||||||
2022: | ||||||||||||||||||||||||||||||||||||||||||||
9 Communities | 11.7 | $ | 924,450 | $ | 555,558 | $ | 150,377 | $ | 405,181 | 4.0% | 12.0% | |||||||||||||||||||||||||||||||||
2013 - 2022 Total: | ||||||||||||||||||||||||||||||||||||||||||||
69 Communities | 13.2 | $ | 5,958,600 | $ | 2,980,915 | $ | 1,116,247 | $ | 1,864,668 | 4.6% | 11.1% |
Key Outputs (1) | ||||||||||||||||||||||||||||||||
2022 Actual | Full Year 2023 Projected | 2023 Midpoint | Change | |||||||||||||||||||||||||||||
EPS | $8.12 | $6.25 | to | $6.75 | $6.50 | (20.0)% | ||||||||||||||||||||||||||
FFO per share | $9.67 | $9.99 | to | $10.49 | $10.24 | 5.9% | ||||||||||||||||||||||||||
Core FFO per share | $9.79 | $10.06 | to | $10.56 | $10.31 | 5.3% |
Assumptions | Key Capital Items | ||||||||||||||||||||||||||||||||||||||||
US | AVB Established Regions | AVB Expansion Regions | New capital sourced from capital markets activity and asset sales | $400 | |||||||||||||||||||||||||||||||||||||
Capital sourced in 2022 from the Equity Forward (4) | $490 | ||||||||||||||||||||||||||||||||||||||||
2023 Growth assumptions (2): | |||||||||||||||||||||||||||||||||||||||||
Expected job growth | 0.6% | 0.5% | 1.0% | Capital used for debt redemptions and amortization | $610 | ||||||||||||||||||||||||||||||||||||
Expected total personal income growth | 4.2% | 4.4% | 5.5% | ||||||||||||||||||||||||||||||||||||||
Expected new supply | 2.7% | 1.6% | 3.5% | Capital used for investment activities (5) | $1,170 | ||||||||||||||||||||||||||||||||||||
Projected cash and cash equivalents, 12/31/2023 | $85 | ||||||||||||||||||||||||||||||||||||||||
Same Store assumptions: | |||||||||||||||||||||||||||||||||||||||||
Residential revenue change | 4.0% to 6.0% | ||||||||||||||||||||||||||||||||||||||||
Residential Opex change | 5.75% to 7.25% | ||||||||||||||||||||||||||||||||||||||||
Residential NOI change | 3.0% to 5.5% | Additional Information | |||||||||||||||||||||||||||||||||||||||
Capitalized interest | $45 to $55 | Apartment | Q4 2022 | ||||||||||||||||||||||||||||||||||||||
Homes | NOI (1) | ||||||||||||||||||||||||||||||||||||||||
Expected capital cost for Development started in 2023 | $875 | Q4 2022 NOI - recast for 2023 segments | |||||||||||||||||||||||||||||||||||||||
Residential NOI | |||||||||||||||||||||||||||||||||||||||||
Same Store | 75,707 | $ | 430,755 | ||||||||||||||||||||||||||||||||||||||
Development homes completed and delivered in 2023 | 2,125 | Other Stabilized | 3,743 | 20,237 | |||||||||||||||||||||||||||||||||||||
Development | 714 | 3,406 | |||||||||||||||||||||||||||||||||||||||
Development homes occupied in 2023 | 1,550 | Redevelopment | 5,589 | 2,075 | |||||||||||||||||||||||||||||||||||||
Commercial NOI | N/A | 9,242 | |||||||||||||||||||||||||||||||||||||||
2023 Projected Residential NOI - Development | $18 to $24 | Total | 85,753 | $ | 465,715 | ||||||||||||||||||||||||||||||||||||
Structured Investment Program (SIP) | |||||||||||||||||||||||||||||||||||||||||
New commitments in 2023 | $75 to $125 | ||||||||||||||||||||||||||||||||||||||||
Total amount funded in 2023 | $50 to $100 | ||||||||||||||||||||||||||||||||||||||||
Expensed overhead (3) | $187 to $197 | ||||||||||||||||||||||||||||||||||||||||
Expensed overhead, included in Core FFO (3) | $186 to $196 |
TABLE 1 | ||||||||
Q4 | ||||||||
2022 | ||||||||
Net income | $ | 241,164 | ||||||
Interest expense and loss on extinguishment of debt | 59,400 | |||||||
Income tax expense | 6,683 | |||||||
Depreciation expense | 207,232 | |||||||
EBITDA | $ | 514,479 | ||||||
Gain on sale of communities | (88,065) | |||||||
Unconsolidated entity EBITDAre adjustments (1) | 2,728 | |||||||
EBITDAre | $ | 429,142 | ||||||
Unconsolidated entity gains, net | (6,367) | |||||||
Structured Investment Program loan reserve | (21) | |||||||
Advocacy contributions | 100 | |||||||
Loss on interest rate contract | 267 | |||||||
Executive transition compensation costs | 411 | |||||||
Severance related costs | 458 | |||||||
Expensed transaction, development and other pursuit costs, net of recoveries | 5,507 | |||||||
Gain on for-sale condominiums | (104) | |||||||
For-sale condominium marketing, operating and administrative costs | 485 | |||||||
Gain on other real estate transactions, net | (4,944) | |||||||
Legal settlements | 1,206 | |||||||
Core EBITDAre | $ | 426,140 | ||||||
(1) Includes joint venture interest, taxes, depreciation, gain on dispositions of depreciated real estate and impairment losses, if applicable, included in net income. | ||||||||
TABLE 2 | ||||||||||||||||||||||||||
Q4 | Q4 | Full Year | Full Year | |||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net income attributable to common stockholders | $ | 241,293 | $ | 335,209 | $ | 1,136,775 | $ | 1,004,299 | ||||||||||||||||||
Depreciation - real estate assets, including joint venture adjustments | 205,977 | 195,749 | 810,611 | 753,755 | ||||||||||||||||||||||
Distributions to noncontrolling interests | 12 | 12 | 48 | 48 | ||||||||||||||||||||||
Gain on sale of unconsolidated entities holding previously depreciated real estate | (82) | — | (38,144) | (23,305) | ||||||||||||||||||||||
Gain on sale of previously depreciated real estate | (88,065) | (213,881) | (555,558) | (602,235) | ||||||||||||||||||||||
Casualty loss on real estate | — | 2 | — | 3,119 | ||||||||||||||||||||||
FFO attributable to common stockholders | 359,135 | 317,091 | 1,353,732 | 1,135,681 | ||||||||||||||||||||||
Adjusting items: | ||||||||||||||||||||||||||
Unconsolidated entity gains, net (1) | (6,367) | (5,814) | (8,355) | (14,870) | ||||||||||||||||||||||
Joint venture promote (2) | — | — | (4,690) | — | ||||||||||||||||||||||
Structured Investment Program loan reserve (3) | (21) | — | 1,632 | — | ||||||||||||||||||||||
Loss on extinguishment of consolidated debt | — | 19 | 1,646 | 17,787 | ||||||||||||||||||||||
Loss (gain) on interest rate contract | 267 | — | (229) | (2,654) | ||||||||||||||||||||||
Advocacy contributions | 100 | 59 | 634 | 59 | ||||||||||||||||||||||
Executive transition compensation costs | 411 | 411 | 1,631 | 3,010 | ||||||||||||||||||||||
Severance related costs | 458 | (73) | 1,097 | 313 | ||||||||||||||||||||||
Expensed transaction, development and other pursuit costs, net of recoveries (4) | 5,507 | 788 | 13,288 | 1,363 | ||||||||||||||||||||||
Gain on for-sale condominiums (5) | (104) | (1,059) | (2,217) | (3,110) | ||||||||||||||||||||||
For-sale condominium marketing, operating and administrative costs (5) | 485 | 634 | 2,129 | 4,087 | ||||||||||||||||||||||
For-sale condominium imputed carry cost (6) | 271 | 1,252 | 2,306 | 7,031 | ||||||||||||||||||||||
Gain on other real estate transactions, net | (4,944) | (95) | (5,039) | (2,097) | ||||||||||||||||||||||
Legal settlements | 1,206 | 39 | (2,212) | 1,139 | ||||||||||||||||||||||
Income tax expense (7) | 6,683 | 4,299 | 14,646 | 5,733 | ||||||||||||||||||||||
Core FFO attributable to common stockholders | $ | 363,087 | $ | 317,551 | $ | 1,369,999 | $ | 1,153,472 | ||||||||||||||||||
Average shares outstanding - diluted | 140,007,823 | 139,928,816 | 139,975,087 | 139,717,399 | ||||||||||||||||||||||
Earnings per share - diluted | $ | 1.72 | $ | 2.40 | $ | 8.12 | $ | 7.19 | ||||||||||||||||||
FFO per common share - diluted | $ | 2.57 | $ | 2.27 | $ | 9.67 | $ | 8.13 | ||||||||||||||||||
Core FFO per common share - diluted | $ | 2.59 | $ | 2.27 | $ | 9.79 | $ | 8.26 | ||||||||||||||||||
(1) Amounts consist primarily of net unrealized gains on technology investments. | ||||||||||||||||||||||||||
(2) Amount for 2022 is for the Company's recognition of its promoted interest in the U.S. Fund. | ||||||||||||||||||||||||||
(3) Amounts are the expected credit losses associated with the Company's lending commitments under its Structured Investment Program. The timing and amount of any actual losses that will be incurred, if any, is to be determined. | ||||||||||||||||||||||||||
(4) Amount for 2022 includes the charges of $10,073 primarily related to development opportunities in the Pacific Northwest and Southern California that we determined are no longer probable. | ||||||||||||||||||||||||||
(5) Aggregate impact of (i) Gain on for-sale condominiums and (ii) For-sale condominium marketing, operating and administrative costs, is a net expense of $381 for Q4 2022 and net gain $88 for full year 2022 and a net gain of $425 for Q4 2021 and net expense of $977 for full year 2021, respectively, as shown on Attachment 1 - Condensed Consolidated Operating Information. | ||||||||||||||||||||||||||
(6) Represents the imputed carry cost of the for-sale residential condominiums at The Park Loggia. The Company computes this adjustment by multiplying the Total Capital Cost of completed and unsold for-sale residential condominiums by the Company's weighted average unsecured debt effective interest rate. | ||||||||||||||||||||||||||
(7) Amounts are primarily for the recognition of taxes associated with The Park Loggia. | ||||||||||||||||||||||||||
TABLE 3 | |||||
Core EBITDAre (1) | $ | 426,140 | |||
Interest expense (2) | $ | 59,400 | |||
Interest Coverage | 7.2 times | ||||
(1) For additional detail, see Attachment 14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 1. | |||||
(2) Excludes the impact of gain on interest rate contract. | |||||
TABLE 4 | |||||
Total debt principal (1) | $ | 8,377,827 | |||
Cash and cash in escrow | (734,245) | ||||
Net debt | $ | 7,643,582 | |||
Core EBITDAre (2) | $ | 426,140 | |||
Core EBITDAre, annualized | $ | 1,704,560 | |||
Net Debt-to-Core EBITDAre | 4.5 times | ||||
(1) Balance at December 31, 2022 excludes $47,695 of debt discount and deferred financing costs as reflected in unsecured notes, net, and $14,087 of debt discount and deferred financing costs as reflected in notes payable on the Condensed Consolidated Balance Sheets. | |||||
(2) For additional detail, see Attachment 14 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 1. | |||||
TABLE 5 | ||||||||||||||||||||||||||||||||||||||||||||
Q4 | Q4 | Q3 | Q2 | Q1 | Full Year | Full Year | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||
Net income | $ | 241,164 | $ | 335,298 | $ | 494,632 | $ | 138,566 | $ | 262,076 | $ | 1,136,438 | $ | 1,004,356 | ||||||||||||||||||||||||||||||
Property management and other indirect operating expenses, net of corporate income | 26,081 | 24,555 | 29,374 | 30,632 | 28,113 | 114,200 | 98,665 | |||||||||||||||||||||||||||||||||||||
Expensed transaction, development and other pursuit costs, net of recoveries | 6,700 | 1,331 | 6,514 | 2,364 | 987 | 16,565 | 3,231 | |||||||||||||||||||||||||||||||||||||
Interest expense, net | 57,461 | 55,711 | 57,290 | 58,797 | 56,526 | 230,074 | 220,415 | |||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt, net | — | 19 | 1,646 | — | — | 1,646 | 17,787 | |||||||||||||||||||||||||||||||||||||
General and administrative expense | 20,741 | 16,481 | 14,611 | 21,291 | 17,421 | 74,064 | 69,611 | |||||||||||||||||||||||||||||||||||||
Income from investments in unconsolidated entities | (6,820) | (5,626) | (43,777) | (2,480) | (317) | (53,394) | (38,585) | |||||||||||||||||||||||||||||||||||||
Depreciation expense | 207,232 | 197,036 | 206,658 | 199,302 | 201,786 | 814,978 | 758,596 | |||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 6,683 | 4,299 | 5,651 | (159) | 2,471 | 14,646 | 5,733 | |||||||||||||||||||||||||||||||||||||
Casualty loss | — | 2 | — | — | — | — | 3,119 | |||||||||||||||||||||||||||||||||||||
Gain on sale of communities | (88,065) | (213,881) | (318,289) | (404) | (148,800) | (555,558) | (602,235) | |||||||||||||||||||||||||||||||||||||
Gain on other real estate transactions, net | (4,944) | (95) | (15) | (43) | (37) | (5,039) | (2,097) | |||||||||||||||||||||||||||||||||||||
Net for-sale condominium activity | 381 | (425) | (304) | 71 | (236) | (88) | 977 | |||||||||||||||||||||||||||||||||||||
NOI from real estate assets sold or held for sale | (899) | (12,192) | (4,839) | (7,811) | (9,197) | (22,746) | (61,105) | |||||||||||||||||||||||||||||||||||||
NOI | 465,715 | 402,513 | 449,152 | 440,126 | 410,793 | 1,765,786 | 1,478,468 | |||||||||||||||||||||||||||||||||||||
Commercial NOI | (9,242) | (7,945) | (11,005) | (7,673) | (8,224) | (36,144) | (25,326) | |||||||||||||||||||||||||||||||||||||
Residential NOI | $ | 456,473 | $ | 394,568 | $ | 438,147 | $ | 432,453 | $ | 402,569 | $ | 1,729,642 | $ | 1,453,142 | ||||||||||||||||||||||||||||||
Residential NOI | ||||||||||||||||||||||||||||||||||||||||||||
Same Store: | ||||||||||||||||||||||||||||||||||||||||||||
New England | $ | 60,055 | $ | 51,816 | $ | 58,675 | $ | 56,523 | $ | 51,901 | $ | 227,154 | $ | 195,526 | ||||||||||||||||||||||||||||||
Metro NY/NJ | 86,109 | 74,329 | 80,865 | 78,483 | 74,707 | 320,164 | 280,448 | |||||||||||||||||||||||||||||||||||||
Mid-Atlantic | 59,210 | 53,727 | 55,903 | 55,767 | 53,946 | 224,826 | 206,638 | |||||||||||||||||||||||||||||||||||||
Southeast FL | 6,468 | 5,904 | 6,359 | 6,161 | 5,965 | 24,953 | 19,642 | |||||||||||||||||||||||||||||||||||||
Denver, CO | 5,121 | 4,486 | 4,904 | 4,900 | 4,727 | 19,652 | 16,451 | |||||||||||||||||||||||||||||||||||||
Pacific NW | 25,133 | 21,598 | 25,325 | 25,212 | 23,122 | 98,792 | 82,133 | |||||||||||||||||||||||||||||||||||||
N. California | 73,348 | 67,052 | 72,440 | 71,439 | 67,807 | 285,034 | 260,509 | |||||||||||||||||||||||||||||||||||||
S. California | 85,278 | 81,237 | 83,926 | 89,070 | 81,541 | 339,815 | 299,102 | |||||||||||||||||||||||||||||||||||||
Total Same Store | 400,722 | 360,149 | 388,397 | 387,555 | 363,716 | 1,540,390 | 1,360,449 | |||||||||||||||||||||||||||||||||||||
Other Stabilized | 37,095 | 25,081 | 33,432 | 30,973 | 26,846 | 128,346 | 68,392 | |||||||||||||||||||||||||||||||||||||
Development/Redevelopment | 18,656 | 9,338 | 16,318 | 13,925 | 12,007 | 60,906 | 24,301 | |||||||||||||||||||||||||||||||||||||
Residential NOI | $ | 456,473 | $ | 394,568 | $ | 438,147 | $ | 432,453 | $ | 402,569 | $ | 1,729,642 | $ | 1,453,142 | ||||||||||||||||||||||||||||||
TABLE 6 | ||||||||||||||||||||||||||||||||||||||||||||
Q4 | Q4 | Q3 | Q2 | Q1 | Full Year | Full Year | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||
Revenue from real estate assets sold or held for sale | $ | 1,265 | $ | 19,694 | $ | 7,315 | $ | 11,956 | $ | 14,838 | $ | 35,374 | $ | 99,684 | ||||||||||||||||||||||||||||||
Operating expenses from real estate assets sold or held for sale | (366) | (7,502) | (2,476) | (4,145) | (5,641) | (12,628) | (38,579) | |||||||||||||||||||||||||||||||||||||
NOI from real estate assets sold or held for sale | $ | 899 | $ | 12,192 | $ | 4,839 | $ | 7,811 | $ | 9,197 | $ | 22,746 | $ | 61,105 | ||||||||||||||||||||||||||||||
TABLE 7 | ||||||||||||||||||||||||||||||||||||||||||||
Q4 | Q4 | Q3 | Q2 | Q1 | Full Year | Full Year | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||
Commercial Revenue | $ | 10,891 | $ | 9,284 | $ | 12,577 | $ | 9,235 | $ | 9,924 | $ | 42,627 | $ | 31,015 | ||||||||||||||||||||||||||||||
Commercial Operating Expenses | (1,649) | (1,339) | (1,572) | (1,562) | (1,700) | (6,483) | (5,689) | |||||||||||||||||||||||||||||||||||||
Commercial NOI | $ | 9,242 | $ | 7,945 | $ | 11,005 | $ | 7,673 | $ | 8,224 | $ | 36,144 | $ | 25,326 | ||||||||||||||||||||||||||||||
TABLE 8 | ||||||||||||||
Low Range | High Range | |||||||||||||
Projected EPS (diluted) - Q1 2023 | $ | 1.05 | $ | 1.15 | ||||||||||
Depreciation (real estate related) | 1.41 | 1.41 | ||||||||||||
Projected FFO per share (diluted) - Q1 2023 | 2.46 | 2.56 | ||||||||||||
Expensed transaction, development and other pursuit costs, net of recoveries | 0.01 | 0.01 | ||||||||||||
Projected Core FFO per share (diluted) - Q1 2023 | $ | 2.47 | $ | 2.57 | ||||||||||
Projected EPS (diluted) - Full Year 2023 | $ | 6.25 | $ | 6.75 | ||||||||||
Depreciation (real estate related) | 5.67 | 5.67 | ||||||||||||
Gain on sale of communities | (1.93) | (1.93) | ||||||||||||
Projected FFO per share (diluted) - Full Year 2023 | 9.99 | 10.49 | ||||||||||||
Expensed transaction, development and other pursuit costs, net of recoveries | 0.03 | 0.03 | ||||||||||||
Executive transition compensation costs | 0.01 | 0.01 | ||||||||||||
Structured Investment Program loan reserve | 0.01 | 0.01 | ||||||||||||
Income tax expense | 0.02 | 0.02 | ||||||||||||
Adjustments related to residential for-sale condominiums at The Park Loggia (1) | 0.01 | 0.01 | ||||||||||||
Gain on other real estate transactions, net | (0.01) | (0.01) | ||||||||||||
Projected Core FFO per share (diluted) - Full Year 2023 | $ | 10.06 | $ | 10.56 | ||||||||||
(1) The Park Loggia adjustments include expected operating expenses, GAAP gain and imputed carry costs for unsold condominiums held in inventory. | ||||||||||||||
TABLE 9 | ||||||||||||||||||||||||||||||||
Q4 | Q4 | Q3 | Full Year | Full Year | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2022 | 2021 | ||||||||||||||||||||||||||||
Residential rental revenue (GAAP basis) | $ | 571,828 | $ | 518,381 | $ | 567,890 | $ | 2,224,125 | $ | 2,005,433 | ||||||||||||||||||||||
Residential concessions amortized | 2,629 | 11,829 | 2,883 | 18,923 | 58,855 | |||||||||||||||||||||||||||
Residential concessions granted | (4,588) | (4,429) | (1,932) | (10,514) | (42,131) | |||||||||||||||||||||||||||
Residential Rental Revenue with Concessions on a Cash Basis | $ | 569,869 | $ | 525,781 | $ | 568,841 | $ | 2,232,534 | $ | 2,022,157 | ||||||||||||||||||||||
Q4 2022 vs. Q4 2021 | Q4 2022 vs. Q3 2022 | Full Year 2022 vs. Full Year 2021 | ||||||||||||||||||||||||||||||
% change -- GAAP revenue | 10.3 | % | 0.7 | % | 10.9 | % | ||||||||||||||||||||||||||
% change -- cash revenue | 8.4 | % | 0.2 | % | 10.4 | % | ||||||||||||||||||||||||||
TABLE 10 | |||||||||||||||||||||||||||||||||||||||||||||||
Same Store Uncollectible Residential Lease Revenue | |||||||||||||||||||||||||||||||||||||||||||||||
Q4 | Q3 | Q2 | Q1 | Q4 | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||
Total | Excluding Rent Relief | Total | Excluding Rent Relief | Total | Excluding Rent Relief | Total | Excluding Rent Relief | Total | Excluding Rent Relief | ||||||||||||||||||||||||||||||||||||||
New England | 1.1 | % | 1.7 | % | 0.8 | % | 1.5 | % | 0.4 | % | 2.0 | % | 0.7 | % | 2.5 | % | 0.3 | % | 2.1 | % | |||||||||||||||||||||||||||
Metro NY/NJ | 2.2 | % | 3.0 | % | 1.4 | % | 2.6 | % | 2.0 | % | 3.0 | % | 2.4 | % | 3.7 | % | 2.1 | % | 3.9 | % | |||||||||||||||||||||||||||
Mid-Atlantic | 2.0 | % | 2.4 | % | 2.1 | % | 2.7 | % | 1.9 | % | 2.5 | % | 1.8 | % | 2.6 | % | 1.6 | % | 2.6 | % | |||||||||||||||||||||||||||
Southeast FL | 2.5 | % | 3.2 | % | 2.8 | % | 3.4 | % | 1.4 | % | 2.8 | % | 1.6 | % | 4.2 | % | 1.6 | % | 2.8 | % | |||||||||||||||||||||||||||
Denver, CO | 0.6 | % | 1.6 | % | 0.2 | % | 0.7 | % | 0.6 | % | 1.5 | % | 0.4 | % | 0.9 | % | 0.3 | % | 0.8 | % | |||||||||||||||||||||||||||
Pacific NW | 0.8 | % | 1.1 | % | 0.9 | % | 1.3 | % | — | % | 0.7 | % | 0.5 | % | 1.1 | % | 1.1 | % | 1.8 | % | |||||||||||||||||||||||||||
N. California | 1.8 | % | 2.2 | % | 1.0 | % | 2.1 | % | 0.6 | % | 2.8 | % | 2.0 | % | 3.6 | % | 2.0 | % | 3.8 | % | |||||||||||||||||||||||||||
S. California | 5.2 | % | 5.6 | % | 4.1 | % | 5.6 | % | (0.8) | % | 6.7 | % | 3.3 | % | 9.6 | % | 1.8 | % | 9.8 | % | |||||||||||||||||||||||||||
Total Same Store | 2.5 | % | 3.0 | % | 1.9 | % | 2.9 | % | 0.7 | % | 3.4 | % | 2.0 | % | 4.5 | % | 1.6 | % | 4.5 | % | |||||||||||||||||||||||||||
TABLE 11 | ||||||||
Full Year 2022 | ||||||||
NOI | ||||||||
Residential NOI: | ||||||||
Same Store | $ | 1,540,390 | ||||||
Other Stabilized | 128,346 | |||||||
Development/Redevelopment | 60,906 | |||||||
Total Residential NOI | 1,729,642 | |||||||
Commercial NOI | 36,144 | |||||||
NOI from real estate assets sold or held for sale | 22,746 | |||||||
Total NOI generated by real estate assets | 1,788,532 | |||||||
Less NOI on encumbered assets | (85,501) | |||||||
NOI on unencumbered assets | $ | 1,703,031 | ||||||
Unencumbered NOI | 95 | % | ||||||