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Published: 2023-10-26 06:58:43 ET

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EX-99.2 3 q32023ex-992.htm EX-99.2 Document

Exhibit 99.2

For Immediate News Release

October 25, 2023

AVALONBAY COMMUNITIES, INC.

ANNOUNCES THIRD QUARTER 2023 OPERATING RESULTS AND

FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL OUTLOOK

(Arlington, VA) AvalonBay Communities, Inc. (NYSE: AVB) (the “Company”) reported Earnings per Share – diluted (“EPS”), Funds from Operations attributable to common stockholders - diluted (“FFO”) per share and Core FFO per share (as defined in this release) for the three and nine months ended September 30, 2023 and 2022 as detailed below.



	Q3 2023		Q3 2022		% Change
EPS	$	1.21	$	3.53	(65.7)	%
FFO per share (1)	$	2.48	$	2.46	0.8	%
Core FFO per share (1)	$	2.66	$	2.50	6.4	%

	YTD 2023		YTD 2022		% Change
EPS	$	4.86	$	6.40	(24.1)	%
FFO per share (1)	$	7.69	$	7.11	8.2	%
Core FFO per share (1)	$	7.89	$	7.19	9.7	%

(1) For additional detail on reconciling items between net income attributable to common stockholders, FFO and Core FFO, see Attachment 12, table 3.

The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the three months ended September 30, 2023 to its results for the prior year period:



Q3 2023 Results Compared to Q3 2022
	Per Share
	EPS		FFO		Core FFO
Q3 2022 per share reported results	$	3.53	$	2.46	$	2.50
Same Store Residential NOI (1)	0.15		0.15		0.15
Development and Other Stabilized Residential NOI	0.06		0.06		0.06
Commercial NOI	(0.02)		(0.02)		(0.02)
Overhead and other	(0.02)		(0.02)		(0.02)
Capital markets and transaction activity	0.02		(0.01)		(0.01)
Non-core items (2)	(0.14)		(0.14)		—
Real estate gains, depreciation expense and other	(2.37)		—		—
Q3 2023 per share reported results	$	1.21	$	2.48	$	2.66

(1) Consists of increases of $0.22 in revenue and $0.07 in operating expenses.
(2) For detail of non-core items, see Attachment 12, table 3.

The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the three months ended September 30, 2023 to its July 2023 outlook:



Q3 2023 Results Compared to July 2023 Outlook
	Per Share
	EPS		FFO		Core FFO
Projected per share (1)	$	1.27	$	2.55	$	2.60
Same Store Residential NOI (2)	0.04		0.04		0.04
Development and Other Stabilized Residential NOI	0.01		0.01		0.01
Overhead and other	(0.01)		(0.01)		(0.01)
Capital markets and transaction activity	0.02		0.02		0.02
Non-core items (3)	(0.13)		(0.13)		—
Real estate gains, depreciation expense and other	0.01		—		—
Q3 2023 per share reported results	$	1.21	$	2.48	$	2.66
(1) The mid-point of the Company's July 2023 outlook.
(2) Consists of higher revenue of $0.02 and lower operating expenses of $0.02.
(3) For detail of non-core items for the three months ended September 30, 2023, see Attachment 12, table 3.

The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the nine months ended September 30, 2023 to its results for the prior year period:



YTD 2023 Results Compared to YTD 2022
	Per Share
	EPS		FFO		Core FFO
YTD 2022 per share reported results	$	6.40	$	7.11	$	7.19
Same Store Residential NOI (1)	0.60		0.60		0.60
Development and Other Stabilized Residential NOI	0.17		0.17		0.17
Commercial NOI	(0.01)		(0.01)		(0.01)
Overhead and other	(0.03)		(0.03)		(0.03)
Capital markets and transaction activity	(0.01)		(0.05)		(0.05)
Unconsolidated investment income and management fees	0.03		0.03		0.03
Non-core items (2)	(0.13)		(0.13)		(0.01)
Real estate gains, depreciation expense and other	(2.16)		—		—
YTD 2023 per share reported results	$	4.86	$	7.69	$	7.89

(1) Consists of increases of $0.87 in revenue and $0.27 in operating expenses.
(2) For detail of non-core items, see Attachment 12, table 3.

Same Store Operating Results for the Three Months Ended September 30, 2023 Compared to the Prior Year Period

Same Store total revenue increased $30,305,000, or 5.0%, to $642,093,000. Same Store Residential rental revenue increased $31,361,000, or 5.2%, to $635,318,000, as detailed in the following table:



Same Store Residential Rental Revenue Change
Q3 2023 Compared to Q3 2022

Lease rates	4.2	%
Concessions and other discounts	—	%
Economic occupancy	(0.2)	%
Other rental revenue	1.0	%
Uncollectible lease revenue (excluding rent relief) (1)	1.0	%
Rent relief (2)	(0.8)	%
Residential rental revenue	5.2	%

(1) Adjusting to remove the impact of rent relief, uncollectible lease revenue as a percentage of total Residential rental revenue decreased to 2.1% in Q3 2023 from 3.2% in Q3 2022. See Attachment 12, table 11 for further detail of uncollectible lease revenue for the Company’s Same Store portfolio.
(2) The Company recognized $1,516,000 and $6,490,000 from government rent relief programs during Q3 2023 and Q3 2022, respectively.

Same Store Residential operating expenses increased $9,736,000, or 5.0%, to $202,828,000 and Same Store Residential NOI increased $21,609,000, or 5.3%, to $432,922,000.

The following table presents percentage changes in Same Store Residential rental revenue, operating expenses and NOI for the three months ended September 30, 2023 compared to the three months ended September 30, 2022:



Q3 2023 Compared to Q3 2022
		Same Store Residential
	Rental Revenue (1)			Opex (2)				% of Q3 2023 NOI

						NOI
New England		5.7	%	8.0	%	4.4	%	14.1	%
Metro NY/NJ		4.7	%	5.6	%	4.3	%	20.5	%
Mid-Atlantic		5.2	%	1.8	%	6.9	%	14.6	%
Southeast FL		7.4	%	6.8	%	7.6	%	2.7	%
Denver, CO		4.0	%	6.0	%	3.2	%	1.2	%
Pacific NW		1.1	%	3.4	%	(0.1)	%	6.7	%
N. California		3.6	%	3.5	%	3.7	%	17.4	%
S. California		7.6	%	5.6	%	8.5	%	21.9	%
Other Expansion Regions		8.2	%	13.4	%	6.7	%	0.9	%
Total		5.2	%	5.0	%	5.3	%	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 Operating Results for the Nine Months Ended September 30, 2023 Compared to the Prior Year Period

Same Store total revenue increased $120,733,000, or 6.8%, to $1,899,041,000. Same Store Residential rental revenue increased $121,808,000, or 6.9%, to $1,878,017,000, as detailed in the following table:



Same Store Residential Rental Revenue Change
YTD 2023 Compared to YTD 2022

Lease rates	6.1	%
Concessions and other discounts	0.6	%
Economic occupancy	(0.2)	%
Other rental revenue	0.9	%
Uncollectible lease revenue (excluding rent relief) (1)	1.2	%
Rent relief (2)	(1.7)	%
Residential rental revenue	6.9	%

(1) Adjusting to remove the impact of rent relief, uncollectible lease revenue as a percentage of total Residential rental revenue decreased to 2.5% in YTD 2023 from 3.8% in YTD 2022. See Attachment 12, table 11 for further detail of uncollectible lease revenue for the Company’s Same Store portfolio.
(2) The Company recognized $6,944,000 and $36,341,000 from government rent relief programs during YTD 2023 and YTD 2022, respectively.

Same Store Residential operating expenses increased $37,261,000, or 6.8%, to $587,768,000 and Same Store Residential NOI increased $84,535,000, or 7.0%, to $1,291,576,000.

The following table presents percentage changes in Same Store Residential rental revenue, operating expenses and NOI for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022:



YTD 2023 Compared to YTD 2022
		Same Store Residential
	Rental Revenue (1)			Opex (2)				% of YTD 2023 NOI

						NOI
New England		8.5	%	6.8	%	9.4	%	14.1	%
Metro NY/NJ		8.2	%	8.3	%	8.2	%	20.7	%
Mid-Atlantic		6.7	%	3.2	%	8.3	%	14.7	%
Southeast FL		11.7	%	5.7	%	15.0	%	2.8	%
Denver, CO		5.9	%	16.6	%	2.0	%	1.1	%
Pacific NW		5.3	%	6.3	%	4.8	%	6.8	%
N. California		6.0	%	5.3	%	6.2	%	17.4	%
S. California		5.4	%	8.4	%	4.1	%	21.5	%
Other Expansion Regions		10.5	%	13.8	%	9.5	%	0.9	%
Total		6.9	%	6.8	%	7.0	%	100.0	%

(1) See Attachment 6, Year to Date Residential Rental Revenue and Occupancy Changes, for additional detail.
(2) See Attachment 7, Residential Opex, for discussion of variances.

Development Activity

Consolidated Development Communities

During the three months ended September 30, 2023, the Company completed the development of three communities:

•Avalon Somerville Station, located in Somerville, NJ;

•Avalon North Andover, located in North Andover, MA; and

•Avalon Merrick Park, located in Miami, FL.

These communities contain an aggregate of 849 apartment homes and were constructed for an aggregate Total Capital Cost of $302,000,000.

During the three months ended September 30, 2023, the Company started the construction of two apartment communities:

•Avalon Princeton Shopping Center, located in Princeton, NJ; and

•Avalon South Miami, located in South Miami, FL.

These communities are expected to contain an aggregate of 490 apartment homes and 32,000 square feet of commercial space, which is substantially leased, and be developed for an estimated Total Capital Cost of $268,000,000.

During the nine months ended September 30, 2023, the Company completed the development of five communities containing an aggregate of 1,172 apartment homes and 29,000 square feet of commercial space for an aggregate Total Capital Cost of $486,000,000.

At September 30, 2023, the Company had 16 consolidated Development communities under construction that are expected to contain 5,402 apartment homes and 59,000 square feet of commercial space. Estimated Total Capital Cost at completion for these Development communities is $2,257,000,000.

Disposition Activity

Consolidated Apartment Communities

During the three months ended September 30, 2023, the Company sold Avalon Columbia Pike, a wholly-owned community, located in Arlington, VA, for $105,000,000, resulting in a gain in accordance with GAAP of $22,345,000

and an Economic Loss of $2,409,000. Avalon Columbia Pike contains 269 apartment homes and 27,000 square feet of commercial space.

During the nine months ended September 30, 2023, the Company sold three wholly-owned communities containing an aggregate of 758 apartment homes and 27,000 square feet of commercial space. These communities were sold for $342,000,000 and a weighted average initial Market Cap Rate of 4.7%, resulting in a gain in accordance with GAAP of $209,686,000 and an Economic Gain of $120,869,000.

Acquisition Activity

During the three and nine months ended September 30, 2023, the Company acquired Avalon Frisco at Main, a wholly-owned community, located in Frisco, TX, containing 360 apartment homes for a purchase price of $83,100,000.

In October 2023, the Company acquired two wholly-owned communities:

•Avalon Mooresville, located in Mooresville, NC, contains 203 apartment homes for a purchase price of $52,100,000.

•Avalon West Plano, located in Carrollton, TX, contains 568 apartment homes for a purchase price of $142,000,000, which includes the assumption of a $63,041,000 fixed rate mortgage loan, with a contractual interest rate of 4.18%, maturing in May 2029.

Structured Investment Program ("SIP") Activity

During the three and nine months ended September 30, 2023, the Company entered into two additional commitments, agreeing to provide an aggregate investment of up to $51,660,000 in multifamily development projects in North Carolina and Florida. As of September 30, 2023, the Company had five commitments to fund either mezzanine loans or preferred equity investments for the development of multifamily projects in the Company's markets, up to $144,035,000 in the aggregate. At September 30, 2023, the Company's investment commitments had a weighted average rate of return of 10.9%. The commitments have initial maturity dates between September 2025 and August 2027. As of September 30, 2023, the Company had funded $76,274,000 of these commitments.

Liquidity and Capital Markets

At September 30, 2023, the Company had $508,571,000 in unrestricted cash and cash equivalents. In addition, the Company had $234,008,000 in restricted cash, which is composed of principal reserve funds for secured borrowing arrangements and proceeds from dispositions held in escrow for subsequent tax deferred exchange activity.

As of September 30, 2023, the Company did not have any borrowings outstanding under its $2,250,000,000 unsecured revolving credit facility (the "Credit Facility") and had $70,000,000 outstanding under its $500,000,000 unsecured commercial paper note program. The commercial paper program is backstopped by the Company's commitment to maintain available borrowing capacity under its Credit Facility in an amount equal to actual borrowings under the program.

The Company’s annualized Net Debt-to-Core EBITDAre (as defined in this release) for the third quarter of 2023 was 4.1 times and Unencumbered NOI (as defined in this release) for the nine months ended September 30, 2023 was 95%.

During the three months ended September 30, 2023, the Company repaid its $150,000,000 principal amount variable rate unsecured term loan at par in advance of its February 2024 maturity date.

During the nine months ended September 30, 2023, in addition to the debt activity discussed above, the Company repaid $250,000,000 principal amount of its 2.85% unsecured notes at its maturity.

During the nine months ended September 30, 2023, the Company settled the outstanding equity forward contracts entered into in April 2022 (the "Equity Forward"), issuing 2,000,000 shares of common stock for $491,912,000, or $245.96 per share, net of offering fees and discounts.

Fourth Quarter and Full Year 2023 Financial Outlook

For its fourth quarter and full year 2023 financial outlook, the Company expects the following:



Projected EPS, Projected FFO and Projected Core FFO Outlook (1)
	Q4 2023					Full Year 2023
	Low			High		Low			High
Projected EPS	$	1.76	—	$	1.86	$	6.61	—	$	6.71
Projected FFO per share	$	2.65	—	$	2.75	$	10.34	—	$	10.44
Projected Core FFO per share	$	2.69	—	$	2.79	$	10.58	—	$	10.68

(1) See Attachment 12, table 9, for reconciliations of Projected FFO per share and Projected Core FFO per share to Projected EPS.

Full Year Financial Outlook
						Full Year 2023
						vs. Full Year 2022
						Low			High
Same Store:
Residential revenue change						6.2%		—	6.4%
Residential Opex change						6.1%		—	6.5%
Residential NOI change						6.1%		—	6.5%

The following table compares the Company’s actual results for EPS, FFO per share and Core FFO per share for the third quarter 2023 to the mid-point of its fourth quarter 2023 financial outlook:



Q3 2023 Results Compared to Q4 2023 Outlook
	Per Share
	EPS		FFO		Core FFO
Q3 2023 per share reported results	$	1.21	$	2.48	$	2.66
Same Store Residential revenue	0.01		0.01		0.01
Same Store Residential Opex	0.06		0.06		0.06
Development and Other Stabilized Residential NOI	0.01		0.01		0.01
Overhead and other	0.01		0.01		0.01
Capital markets and transaction activity	(0.01)		(0.01)		(0.01)
Non-core items (1)	0.14		0.14		—
Gain on sale of real estate and depreciation expense	0.38		—		—
Projected per share - Q4 2023 outlook (2)	$	1.81	$	2.70	$	2.74

(1) For detail of non-core items, see Attachment 12, table 3 and table 9.
(2) Represents the mid-point of the Company's outlook.

The following table compares the mid-point of the Company’s October 2023 full year outlook for EPS, FFO per share and Core FFO per share to its July 2023 full year outlook:



October 2023 Full Year Outlook Compared to July 2023 Full Year Outlook
	Per Share
	EPS		FFO		Core FFO
Projected per share - July 2023 outlook (1)	$	6.93	$	10.47	$	10.56
Same Store Residential revenue	0.04		0.04		0.04
Same Store Residential Opex	0.01		0.01		0.01
Overhead and other	(0.03)		(0.03)		(0.03)
Capital markets and transaction activity	0.05		0.05		0.05
Non-core items (2)	(0.15)		(0.15)		—
Gain on sale of real estate and depreciation expense	(0.19)		—		—
Projected per share - October 2023 outlook (1)	$	6.66	$	10.39	$	10.63

(1) Represents the mid-point of the Company's outlook.
(2) For detail of non-core items, see Attachment 12, table 9.

Other Matters

The Company will hold a conference call on October 26, 2023 at 1:00 PM ET to review and answer questions about this release, its third quarter 2023 results, the Attachments (described below) and related matters. To participate on the call, dial 877-407-9716.

To hear a replay of the call, which will be available from October 26, 2023 at 4:00 PM ET to November 26, 2023, dial 844-512-2921 and use replay passcode: 13734361. A webcast of the conference call will also be available at https://investors.avalonbay.com, and an online playback of the webcast will be available for at least seven days following the call.

The Company produces Earnings Release Attachments (the "Attachments") that provide detailed information regarding operating, development, redevelopment, disposition and acquisition activity. These Attachments are considered a part of this earnings release and are available in full with this earnings release via the Company's website at https://investors.avalonbay.com. To receive future press releases via e-mail, please submit a request through https://investors.avalonbay.com/other-information.

In addition to the Attachments, the Company is providing a teleconference presentation that will be available on the Company's website at https://investors.avalonbay.com subsequent to this release and before the market opens on October 26, 2023.

About AvalonBay Communities, Inc.

As of September 30, 2023, the Company owned or held a direct or indirect ownership interest in 296 apartment communities containing 89,240 apartment homes in 12

states and the District of Columbia, of which 17 communities were under development and one community was under redevelopment. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. More information may be found on the Company’s website at https://www.avalonbay.com. For additional information, please contact Jason Reilley, Vice President of Investor Relations, at 703-317-4681.

Forward-Looking Statements

This release, including its Attachments, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, which you can identify by the Company’s use of words such as “expects,” “plans,” “estimates,” “anticipates,” “projects,” “intends,” “believes,” “outlook,” “may,” “shall,” “will,” “pursue” and similar expressions that predict or indicate future events and trends and that do not report historical matters, are based on the Company’s expectations, forecasts and assumptions at the time of this release, which may not be realized and involve risks and uncertainties that cannot be predicted accurately or that might not be anticipated. These could cause actual results, performance or achievements to differ materially from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements. Risks and uncertainties that might cause such differences include the following: we may abandon development or redevelopment opportunities for which we have already incurred costs; adverse capital and credit market conditions, including rising interest rates, may affect our access to various sources of capital and/or cost of capital, which may affect our business activities, earnings and common stock price, among other things; changes in local employment conditions, demand for apartment homes, supply of competitive housing products, landlord-tenant laws, including the adoption of rent control regulations, and other economic or regulatory conditions may result in lower than expected occupancy and/or rental rates and adversely affect the profitability of our communities; delays in completing development, redevelopment and/or lease-up, and general price inflation, may result in increased financing and construction costs and may delay and/or reduce the profitability of a community; debt and/or equity financing for development, redevelopment or acquisitions of

communities may not be available or may not be available on favorable terms; we may be unable to obtain, or experience delays in obtaining, necessary governmental permits and authorizations; expenses may result in communities that we develop or redevelop failing to achieve expected profitability; our assumptions concerning risks relating to joint ventures and our ability to successfully dispose of certain assets may not be realized; investments made under the SIP in either mezzanine debt or preferred equity of third-party multifamily development may not be repaid as expected; our assumptions and expectations in our financial outlook may prove to be too optimistic; litigation costs and consequences may exceed our expectations; and risks related to an outbreak of disease or other public health event may affect the multifamily industry and general economy, including from measures taken by businesses and the government and the preferences of consumers and businesses for living and working arrangements both during and after such an event. Additional discussions of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements appear in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 under the heading “Risk Factors” and under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements” and in subsequent quarterly reports on Form 10-Q.

The Company does not undertake a duty to update forward-looking statements, including its expected 2023 operating results and other financial data forecasts contained in this release. The Company may, in its discretion, provide information in future public announcements regarding its outlook that may be of interest to the investment community. The format and extent of future outlooks may be different from the format and extent of the information contained in this release.

Definitions and Reconciliations

Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined, reconciled and further explained on Attachment 12, Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. Attachment 12 is included in the full earnings release available at the Company’s website at https://investors.avalonbay.com.

THIRD QUARTER 2023

Supplemental Operating and Financial Data

Table of Contents


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
Year to Date Residential Rental Revenue and Occupancy Changes...........................................................................						Attachment 6
Residential Operating Expenses ("Opex")....................................................................................................................						Attachment 7

Development, Joint Venture and Debt Profile
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





Definitions and Reconciliations
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms...................................................						Attachment 12

The following is a "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The projections and estimates contained in the following attachments, including but not limited to Attachments 9, 10 and 12 contain forward-looking statements that involve risks and uncertainties, and actual results may differ materially from those projected in such statements. Risks associated with the Company's development, redevelopment, construction, and lease-up activities which could impact the forward-looking statements are discussed in the paragraph titled "Forward-Looking Statements" in the release that accompanies, and should be read in conjunction with, these attachments. These and other risks are also described in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and the Company's Quarterly Reports on Form 10-Q for subsequent quarters, and could cause actual results to differ materially from such projections and estimates.

Attachment 1

AvalonBay Communities, Inc.

Condensed Consolidated Operating Information (1)

September 30, 2023

(Dollars in thousands, except per share data)

(unaudited)


	Q3		Q3				YTD		YTD
	2023		2022		% Change		2023		2022		% Change
Revenue:
Rental and other income	$	695,701	$	663,889	4.8	%	$	2,057,492	$	1,920,721	7.1	%
Management, development and other fees	1,934		1,399		38.2	%	5,712		3,054		87.0	%
Total	697,635		665,288		4.9	%	2,063,204		1,923,775		7.2	%
Operating expenses:
Direct property operating expenses, excluding property taxes	142,832		134,810		6.0	%	413,977		382,119		8.3	%
Property taxes	78,399		75,091		4.4	%	227,882		216,695		5.2	%
Total community operating expenses	221,231		209,901		5.4	%	641,859		598,814		7.2	%

Property management and other indirect operating expenses	(32,359)		(30,770)		5.2	%	(95,894)		(91,162)		5.2	%
Expensed transaction, development and other pursuit costs, net of recoveries	(18,959)		(6,514)		191.1	%	(23,212)		(9,865)		135.3	%
Interest expense, net (2)	(48,115)		(57,290)		(16.0)	%	(156,521)		(172,613)		(9.3)	%
Loss on extinguishment of debt, net	(150)		(1,646)		(90.9)	%	(150)		(1,646)		(90.9)	%
Depreciation expense	(200,982)		(206,658)		(2.7)	%	(606,271)		(607,746)		(0.2)	%
General and administrative expense (3)	(20,466)		(14,611)		40.1	%	(58,542)		(53,323)		9.8	%
Casualty loss	(3,499)		—		(100.0)	%	(8,550)		—		(100.0)	%
Income from unconsolidated investments	1,930		43,777		(95.6)	%	11,745		46,574		(74.8)	%
Gain on sale of communities	22,121		318,289		(93.1)	%	209,430		467,493		(55.2)	%
Other real estate activity	237		319		(25.7)	%	707		564		25.4	%
Income before income taxes	176,162		500,283		(64.8)	%	694,087		903,237		(23.2)	%

Income tax expense	(4,372)		(5,651)		(22.6)	%	(7,715)		(7,963)		(3.1)	%
Net income	171,790		494,632		(65.3)	%	686,372		895,274		(23.3)	%

Net loss attributable to noncontrolling interests	241		115		109.6	%	484		208		132.7	%
Net income attributable to common stockholders	$	172,031	$	494,747	(65.2)	%	$	686,856	$	895,482	(23.3)	%

Net income attributable to common stockholders per common share - basic	$	1.21	$	3.54	(65.8)	%	$	4.86	$	6.40	(24.1)	%
Net income attributable to common stockholders per common share - diluted	$	1.21	$	3.53	(65.7)	%	$	4.86	$	6.40	(24.1)	%

FFO	$	352,955	$	343,897	2.6	%	$	1,088,024	$	994,597	9.4	%
Per common share - diluted	$	2.48	$	2.46	0.8	%	$	7.69	$	7.11	8.2	%

Core FFO	$	377,734	$	349,964	7.9	%	$	1,115,886	$	1,006,912	10.8	%
Per common share - diluted	$	2.66	$	2.50	6.4	%	$	7.89	$	7.19	9.7	%

Dividends declared - common	$	234,777	$	222,753	5.4	%	$	700,988	$	668,279	4.9	%
Per common share	$	1.65	$	1.59	3.8	%	$	4.95	$	4.77	3.8	%

Average shares and participating securities outstanding - basic	142,094,001		139,891,547		1.6	%	141,381,390		139,869,827		1.1	%
Average shares outstanding - diluted	142,198,099		139,981,959		1.6	%	141,448,675		139,964,172		1.1	%
Total outstanding common shares and operating partnership units	142,013,995		139,835,842		1.6	%	142,013,995		139,835,842		1.6	%


(1)			For detail of non-Core items which are included in this attachment, see Attachment 12 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 3.
(2)			Amounts include $10,892 and $24,305 of interest income on cash and restricted cash for the three and nine months ended September 30, 2023, respectively, and $356 and $457 of interest income on cash and restricted cash for the three and nine months ended September 30, 2022, respectively.
(3)			Amounts for 2022 include $6,000 of legal settlement proceeds received by the Company as well as severance and other non-Core items. See Attachment 12 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 3.

Attachment 2

AvalonBay Communities, Inc.

Condensed Consolidated Balance Sheets

September 30, 2023

(Dollars in thousands)

(unaudited)



	September 30,		December 31,
	2023		2022

Real estate	$	24,966,988	$	24,619,616
Less accumulated depreciation	(7,349,202)		(6,878,556)

Net operating real estate	17,617,786		17,741,060
Construction in progress, including land	1,317,350		1,072,543
Land held for development	183,158		179,204
Real estate assets held for sale, net	24,731		—

Total real estate, net	19,143,025		18,992,807

Cash and cash equivalents	508,571		613,189
Restricted cash (1)	234,008		121,056
Resident security deposits	37,527		36,815
Unconsolidated investments	217,449		212,084
Other assets	562,258		481,813

Total assets	$	20,702,838	$	20,457,764

Unsecured notes, net	$	7,207,793	$	7,602,305
Unsecured credit facility and commercial paper, net	69,989		—
Notes payable, net	669,212		713,740
Resident security deposits	63,856		63,700
Other liabilities	912,658		821,781
Total liabilities	8,923,508		9,201,526

Redeemable noncontrolling interests	1,729		2,685
Equity	11,777,601		11,253,553

Total liabilities and equity	$	20,702,838	$	20,457,764


(1)			Amount at September 30, 2023 includes $139,255 related to proceeds from dispositions held in escrow for subsequent tax deferred exchange activity.

Attachment 3

AvalonBay Communities, Inc.

Sequential Operating Information (1)

September 30, 2023

(Dollars in thousands, except per home data)

(unaudited)


	Total Apartment Homes	Quarter Ended September 30, 2023			Quarter Ended June 30, 2023			Quarter Ended March 31, 2023			Quarter Ended December 31, 2022
Residential Rental Revenue (2)
Same Store	74,726	$	635,318		$	627,534		$	615,164		$	608,567
Other Stabilized (3)	4,103	28,663			27,833			27,401			26,621
Development/Redevelopment (4)	7,460	17,020			12,733			10,326			8,858
Commercial Rental Revenue (2)	N/A	9,945			10,175			10,244			10,769
Total Rental Revenue	86,289	$	690,946		$	678,275		$	663,135		$	654,815

Residential Operating Expense
Same Store		$	202,828		$	194,574		$	190,366		$	184,442
Other Stabilized (3)		8,521			8,764			8,210			6,752
Development/Redevelopment		6,598			5,006			4,242			3,386
Commercial Operating Expense		1,847			1,646			1,679			1,611
Total Operating Expense		$	219,794		$	209,990		$	204,497		$	196,191

Residential NOI
Same Store		$	432,922		$	433,382		$	425,272		$	424,644
Other Stabilized (3)		20,926			19,701			19,765			20,237
Development/Redevelopment		10,431			7,733			6,092			5,480
Commercial NOI		8,098			8,529			8,565			9,158
Total NOI		$	472,377		$	469,345		$	459,694		$	459,519

Same Store Average Rental Revenue per Occupied Home (5)		$	2,962		$	2,920		$	2,856		$	2,833

Same Store Economic Occupancy		95.7		%	95.9		%	96.1		%	95.8		%

Same Store Turnover (6)
Current year period / Prior year period		57.4% / 55.6%			49.9% / 47.3%			37.2% / 35.9%			39.3% / 37.8%
Current year period YTD / Prior year period YTD		48.2% / 46.4%									44.6% / 46.2%



	SAME STORE LIKE-TERM EFFECTIVE RENT CHANGE
	July 2023		August 2023		September 2023		Q3 2023			October 2023 (8)
New England	4.1	%	4.1	%	4.0	%	4.1	%		3.0	%
Metro NY/NJ	5.2	%	4.8	%	3.7	%	4.6	%		2.7	%
Mid-Atlantic	5.2	%	3.6	%	3.1	%	4.1	%		3.3	%
Southeast FL	0.9	%	0.2	%	(0.9)	%	0.1	%		(0.1)	%
Denver, CO	2.5	%	2.7	%	2.8	%	2.6	%		4.1	%
Pacific NW	(0.3)	%	(1.1)	%	1.2	%	(0.1)	%		3.6	%
N. California	2.3	%	0.3	%	(2.4)	%	0.2	%		(3.2)	%
S. California	4.2	%	3.0	%	3.0	%	3.4	%		2.6	%
Other Expansion Regions	0.6	%	(1.4)	%	(2.0)	%	(0.8)	%		(2.1)	%
Total	3.9	%	3.0	%	2.3	%	3.1	%	(7)	1.8	%	(7)



(1)			Includes consolidated communities and excludes communities that have been sold or that are classified as held for sale. See Attachment 12 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms for the definition of capitalized terms.
(2)			Rental revenue excludes non-qualified REIT income.
(3)			Results for these communities prior to January 1, 2023 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)			Reflects the effect of Residential concessions amortized over the average lease term and includes uncollectible lease revenue and revenue from government rent relief programs.
(6)			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, and excludes any third-party managed communities.
(7)			For the three months ended September 30, 2023, New Move-In Like-Term Effective Rent Change was 1.6% and Renewal Like-Term Effective Rent Change was 4.5%. New Move-In Like-Term Effective Rent Change was (0.8)% and Renewal Like-Term Effective Rent Change was 4.0% for October 1, 2023 to October 20, 2023.
(8)			Rent change percentage for activity in October 2023 through October 20, 2023.

Attachment 4

AvalonBay Communities, Inc.

Quarterly Residential Rental Revenue and Occupancy Changes - Same Store

September 30, 2023

(unaudited)


	Apartment Homes	Average Monthly Rental Revenue Per Occupied Home						Economic Occupancy						Residential Rental Revenue ($000s)(1)
																				% Change Excluding Rent Relief (2)
		Q3 23		Q3 22		% Change		Q3 23		Q3 22		% Change		Q3 23		Q3 22		% Change



New England	9,577	$	3,344	$	3,153	6.1	%	96.5	%	96.9	%	(0.4)	%	$	92,745	$	87,783	5.7	%	6.0	%

Metro NY/NJ
New York City, NY	3,788	4,085		3,878		5.3	%	95.7	%	97.2	%	(1.5)	%	44,412		42,777		3.8	%	4.6	%
New York - Suburban	3,563	3,575		3,442		3.9	%	95.2	%	94.3	%	0.9	%	36,380		34,718		4.8	%	7.5	%
New Jersey	5,415	3,330		3,159		5.4	%	95.5	%	95.5	%	0.0	%	51,656		49,021		5.4	%	5.8	%
Metro NY/NJ	12,766	3,623		3,450		5.0	%	95.5	%	95.8	%	(0.3)	%	132,448		126,516		4.7	%	5.8	%

Mid-Atlantic
Washington DC	2,626	2,644		2,487		6.3	%	91.8	%	93.6	%	(1.8)	%	19,124		18,292		4.5	%	5.1	%
Northern Virginia	5,763	2,580		2,458		5.0	%	95.8	%	95.2	%	0.6	%	42,747		40,474		5.6	%	6.0	%
Suburban Maryland	2,595	2,219		2,117		4.8	%	96.0	%	95.6	%	0.4	%	16,584		15,761		5.2	%	5.2	%
Baltimore, MD	2,317	2,169		2,076		4.5	%	96.0	%	95.5	%	0.5	%	14,471		13,786		5.0	%	5.1	%
Mid-Atlantic	13,301	2,451		2,330		5.2	%	95.0	%	95.0	%	0.0	%	92,926		88,313		5.2	%	5.5	%

Southeast FL	2,187	2,895		2,727		6.2	%	96.5	%	95.3	%	1.2	%	18,319		17,053		7.4	%	8.7	%

Denver, CO	1,086	2,284		2,209		3.4	%	96.3	%	95.7	%	0.6	%	7,166		6,891		4.0	%	4.5	%

Pacific Northwest	5,474	2,684		2,650		1.3	%	95.0	%	95.2	%	(0.2)	%	41,878		41,435		1.1	%	1.3	%

Northern California
San Jose, CA	4,723	3,017		2,897		4.1	%	96.1	%	95.6	%	0.5	%	41,069		39,255		4.6	%	5.0	%
Oakland - East Bay, CA	4,338	2,769		2,695		2.7	%	95.6	%	96.0	%	(0.4)	%	34,436		33,649		2.3	%	4.5	%
San Francisco, CA	3,072	3,441		3,316		3.8	%	95.4	%	95.4	%	0.0	%	30,244		29,148		3.8	%	4.4	%
Northern California	12,133	3,035		2,930		3.6	%	95.7	%	95.7	%	0.0	%	105,749		102,052		3.6	%	4.7	%

Southern California
Los Angeles, CA	12,139	2,784		2,570		8.3	%	95.6	%	96.2	%	(0.6)	%	96,880		89,926		7.7	%	9.4	%
Orange County, CA	3,371	2,765		2,567		7.7	%	96.1	%	95.9	%	0.2	%	26,864		24,892		7.9	%	8.8	%
San Diego, CA	1,767	2,836		2,657		6.7	%	96.7	%	97.5	%	(0.8)	%	14,540		13,734		5.9	%	7.3	%
Southern California	17,277	2,786		2,577		8.1	%	95.8	%	96.3	%	(0.5)	%	138,284		128,552		7.6	%	9.1	%

Other Expansion Regions	925	2,194		2,018		8.7	%	95.3	%	95.8	%	(0.5)	%	5,803		5,362		8.2	%	8.2	%

Total Same Store	74,726	$	2,962	$	2,810	5.4	%	95.7	%	95.9	%	(0.2)	%	$	635,318	$	603,957	5.2	%	6.1	%

(1) Reflects Residential concessions amortized over the average lease term and includes uncollectible lease revenue and revenue from government rent relief programs. Residential Rental Revenue with Concessions on a Cash Basis

for the Company's Same Store portfolio was 4.6%. See Attachment 12, table 10.

(2) Represents the change in Residential Rental Revenue adjusted to remove the impact of governmental rent relief in the periods presented. See Attachment 12, table 11 for further detail of uncollectible lease revenue and government

rent relief for the Company's Same Store portfolio.

Attachment 5

AvalonBay Communities, Inc.

Sequential Quarterly Residential Rental Revenue and Occupancy Changes - Same Store

September 30, 2023

(unaudited)


	Apartment Homes	Average Monthly Rental Revenue Per Occupied Home						Economic Occupancy						Residential Rental Revenue ($000s)(1)
																				% Change Excluding Rent Relief (2)
		Q3 23		Q2 23		% Change		Q3 23		Q2 23		% Change		Q3 23		Q2 23		% Change



New England	9,577	$	3,344	$	3,292	1.6	%	96.5	%	96.5	%	0.0	%	$	92,745	$	91,252	1.6	%	2.0	%

Metro NY/NJ
New York City, NY	3,788	4,085		4,004		2.0	%	95.7	%	96.4	%	(0.7)	%	44,412		43,860		1.3	%	1.5	%
New York - Suburban	3,563	3,575		3,499		2.2	%	95.2	%	94.4	%	0.8	%	36,380		35,317		3.0	%	3.9	%
New Jersey	5,415	3,330		3,260		2.1	%	95.5	%	96.2	%	(0.7)	%	51,656		50,938		1.4	%	1.7	%
Metro NY/NJ	12,766	3,623		3,548		2.1	%	95.5	%	95.8	%	(0.3)	%	132,448		130,115		1.8	%	2.3	%

Mid-Atlantic
Washington DC	2,626	2,644		2,602		1.6	%	91.8	%	93.5	%	(1.7)	%	19,124		19,134		(0.1)	%	0.3	%
Northern Virginia	5,763	2,580		2,510		2.8	%	95.8	%	96.3	%	(0.5)	%	42,747		41,799		2.3	%	2.2	%
Suburban Maryland	2,595	2,219		2,209		0.5	%	96.0	%	96.0	%	0.0	%	16,584		16,505		0.5	%	0.2	%
Baltimore, MD	2,317	2,169		2,159		0.5	%	96.0	%	96.5	%	(0.5)	%	14,471		14,477		0.0	%	0.9	%
Mid-Atlantic	13,301	2,451		2,408		1.8	%	95.0	%	95.7	%	(0.7)	%	92,926		91,915		1.1	%	1.3	%

Southeast FL	2,187	2,895		2,909		(0.5)	%	96.5	%	96.2	%	0.3	%	18,319		18,351		(0.2)	%	0.3	%

Denver, CO	1,086	2,284		2,245		1.7	%	96.3	%	96.2	%	0.1	%	7,166		7,036		1.8	%	1.9	%

Pacific Northwest	5,474	2,684		2,689		(0.2)	%	95.0	%	95.0	%	0.0	%	41,878		41,944		(0.2)	%	(0.2)	%

Northern California
San Jose, CA	4,723	3,017		2,996		0.7	%	96.1	%	96.6	%	(0.5)	%	41,069		40,982		0.2	%	0.2	%
Oakland - East Bay, CA	4,338	2,769		2,757		0.4	%	95.6	%	96.0	%	(0.4)	%	34,436		34,435		0.0	%	(0.1)	%
San Francisco, CA	3,072	3,441		3,433		0.2	%	95.4	%	96.0	%	(0.6)	%	30,244		30,363		(0.4)	%	(0.4)	%
Northern California	12,133	3,035		3,021		0.5	%	95.7	%	96.2	%	(0.5)	%	105,749		105,780		0.0	%	(0.1)	%

Southern California
Los Angeles, CA	12,139	2,784		2,715		2.5	%	95.6	%	95.7	%	(0.1)	%	96,880		94,630		2.4	%	2.3	%
Orange County, CA	3,371	2,765		2,710		2.0	%	96.1	%	96.4	%	(0.3)	%	26,864		26,417		1.7	%	1.6	%
San Diego, CA	1,767	2,836		2,804		1.1	%	96.7	%	96.5	%	0.2	%	14,540		14,347		1.3	%	1.4	%
Southern California	17,277	2,786		2,725		2.2	%	95.8	%	95.9	%	(0.1)	%	138,284		135,394		2.1	%	2.1	%

Other Expansion Regions	925	2,194		2,177		0.8	%	95.3	%	95.1	%	0.2	%	5,803		5,747		1.0	%	1.0	%

Total Same Store	74,726	$	2,962	$	2,920	1.4	%	95.7	%	95.9	%	(0.2)	%	$	635,318	$	627,534	1.2	%	1.4	%

for the Company's Same Store portfolio was 0.8%. See Attachment 12, table 10.

rent relief for the Company's Same Store portfolio.

Attachment 6

AvalonBay Communities, Inc.

Year to Date Residential Rental Revenue and Occupancy Changes - Same Store

September 30, 2023

(unaudited)


	Apartment Homes	Average Monthly Rental Revenue Per Occupied Home						Economic Occupancy						Residential Rental Revenue ($000s)(1)
																				% Change Excluding Rent Relief (2)
		YTD 2023		YTD 2022		% Change		YTD 2023		YTD 2022		% Change		YTD 2023		YTD 2022		% Change

New England	9,577	$	3,285	$	3,007	9.2	%	96.5	%	97.2	%	(0.7)	%	$	273,305	$	251,856	8.5	%	9.5	%

Metro NY/NJ
New York City, NY	3,788	4,017		3,647		10.1	%	96.3	%	97.2	%	(0.9)	%	131,910		120,768		9.2	%	9.9	%
New York - Suburban	3,563	3,514		3,319		5.9	%	94.8	%	95.1	%	(0.3)	%	106,774		101,156		5.6	%	6.3	%
New Jersey	5,415	3,259		2,975		9.5	%	96.0	%	96.2	%	(0.2)	%	152,392		139,381		9.3	%	9.6	%
Metro NY/NJ	12,766	3,555		3,269		8.7	%	95.7	%	96.2	%	(0.5)	%	391,076		361,305		8.2	%	8.8	%

Mid-Atlantic
Washington DC	2,626	2,601		2,417		7.6	%	92.9	%	93.8	%	(0.9)	%	57,126		53,525		6.7	%	7.1	%
Northern Virginia	5,763	2,518		2,356		6.9	%	96.0	%	95.7	%	0.3	%	125,337		116,959		7.2	%	7.7	%
Suburban Maryland	2,595	2,192		2,079		5.4	%	96.1	%	95.7	%	0.4	%	49,190		46,497		5.8	%	6.2	%
Baltimore, MD	2,317	2,130		2,013		5.8	%	96.1	%	95.5	%	0.6	%	42,667		40,097		6.4	%	6.7	%
Mid-Atlantic	13,301	2,403		2,254		6.6	%	95.4	%	95.3	%	0.1	%	274,320		257,078		6.7	%	7.1	%

Southeast FL	2,187	2,896		2,619		10.6	%	96.7	%	95.6	%	1.1	%	55,111		49,341		11.7	%	13.4	%

Denver, CO	1,086	2,246		2,120		5.9	%	95.9	%	95.9	%	0.0	%	21,048		19,867		5.9	%	6.5	%

Pacific Northwest	5,474	2,673		2,525		5.9	%	95.1	%	95.7	%	(0.6)	%	125,278		119,021		5.3	%	5.6	%

Northern California
San Jose, CA	4,723	2,985		2,797		6.7	%	96.5	%	96.2	%	0.3	%	122,426		114,366		7.0	%	8.1	%
Oakland - East Bay, CA	4,338	2,738		2,614		4.7	%	96.0	%	96.1	%	(0.1)	%	102,584		98,045		4.6	%	6.7	%
San Francisco, CA	3,072	3,426		3,245		5.6	%	95.8	%	95.4	%	0.4	%	90,734		85,586		6.0	%	7.8	%
Northern California	12,133	3,008		2,844		5.8	%	96.1	%	95.9	%	0.2	%	315,744		297,997		6.0	%	7.6	%

Southern California
Los Angeles, CA	12,139	2,705		2,574		5.1	%	95.8	%	96.3	%	(0.5)	%	283,238		270,868		4.6	%	11.4	%
Orange County, CA	3,371	2,710		2,519		7.6	%	96.0	%	96.4	%	(0.4)	%	78,981		73,686		7.2	%	10.2	%
San Diego, CA	1,767	2,776		2,560		8.4	%	96.7	%	97.3	%	(0.6)	%	42,696		39,602		7.8	%	9.6	%
Southern California	17,277	2,713		2,564		5.8	%	96.0	%	96.4	%	(0.4)	%	404,915		384,156		5.4	%	11.0	%

Other Expansion Regions	925	2,171		1,968		10.3	%	95.3	%	95.1	%	0.2	%	17,220		15,588		10.5	%	10.5	%

Total Same Store	74,726	$	2,912	$	2,718	7.1	%	95.9	%	96.1	%	(0.2)	%	$	1,878,017	$	1,756,209	6.9	%	8.8	%

for the Company's Same Store portfolio was 6.1%. See Attachment 12, table 10.

rent relief for the Company's Same Store portfolio.

Attachment 7

AvalonBay Communities, Inc.

Residential Operating Expenses ("Opex") - Same Store (1)

September 30, 2023

(Dollars in thousands)

(unaudited)


	Q3 2023		Q3 2022		% Change		Q3 2023 % of Total Opex		YTD 2023		YTD 2022		% Change		YTD 2023 % of Total Opex

Property taxes (2)	$	71,907	$	68,677	4.7	%	35.4	%	$	207,988	$	198,471	4.8	%	35.4	%
Payroll (3)	37,490		38,339		(2.2)	%	18.5	%	112,576		114,953		(2.1)	%	19.1	%
Repairs & maintenance (4)	37,712		35,494		6.2	%	18.6	%	104,422		96,916		7.7	%	17.8	%
Utilities (5)	24,112		21,046		14.6	%	11.9	%	70,128		57,343		22.3	%	11.9	%
Office operations (6)	18,212		17,557		3.7	%	9.0	%	54,528		48,131		13.3	%	9.3	%
Insurance (7)	8,983		8,276		8.5	%	4.4	%	26,211		23,953		9.4	%	4.5	%
Marketing (8)	4,412		3,703		19.1	%	2.2	%	11,915		10,740		10.9	%	2.0	%
Total Same Store Residential Operating Expenses	$	202,828	$	193,092	5.0	%	100.0	%	$	587,768	$	550,507	6.8	%	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 and nine months ended September 30, 2023 over the prior year periods due to (i) increased assessments across the portfolio and (ii) the expiration of property tax incentive programs primarily at certain of our properties in New York City. The expiration of property tax incentive programs represents $1,948 or 60% of the 4.7% increase in property taxes for the three months ended September 30, 2023 and $4,594 or 48% of the 4.8% increase in property taxes for the nine months ended September 30, 2023.

(3)			Payroll costs decreased for the three and nine months ended September 30, 2023 from the prior year periods primarily due to a reduction in on-site leasing and administrative personnel and decreased incentive compensation. The decrease for the three months ended September 30, 2023 is also due to a reduction in on-site maintenance personnel, partially offset by higher benefit costs.

(4)			Repairs and maintenance increased for the three and nine months ended September 30, 2023 over the prior year periods due to increased contract labor and turnover costs and increased uninsured loss, partially offset by increased damage receipts and maintenance rebates as compared to the prior year periods.

(5)			Utilities represents aggregate utility costs, net of resident reimbursements. The increases for the three and nine months ended September 30, 2023 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 trash removal costs and sewer fees. The increase for the nine months ended September 30, 2023 is also due to increase in electricity and gas rates. The bulk internet offering represents $2,167 or 71% of the 14.6% increase in utilities for the three months ended September 30, 2023 and $6,447 or 50% of the 22.3% increase in utilities for the nine months ended September 30, 2023.

(6)			Office operations includes administrative costs, legal and eviction costs, land and furniture lease expense and association and license fees. The increases for the three and nine months ended September 30, 2023 over the prior year periods are primarily due to (i) bad debt expense associated with resident expense reimbursements, damage receipts and other related items, (ii) legal costs and (iii) furnished housing furniture rental costs which are more than offset by furnished housing rental premiums. Bad debt expense and legal costs represent $3,691 or 58% of the 13.3% increase in office operations for the nine months ended September 30, 2023.

(7)			Insurance is composed of premiums, expected claims activity and associated reductions from receipt of claims recoveries. The increases for the three and nine months ended September 30, 2023 over the prior year periods are due to 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 increased for the three and nine months ended September 30, 2023 over the prior year periods due to increased internet advertising costs and customer service incentives.

Attachment 8

AvalonBay Communities, Inc.

Expensed Community Maintenance Costs and Capitalized Community Expenditures

September 30, 2023

(Dollars in thousands, except per home data)

(unaudited)



		YTD 2023 Maintenance Expensed Per Home						Categorization of YTD 2023 Additional Capitalized Value (1)
Current Communities	Apartment Homes (2)	Carpet Replacement		Other Maintenance (3)		Total		Acquisitions, Construction, Redevelopment & Dispositions (4)			NOI Enhancing (5)		Asset Preservation		YTD 2023 Additional Capitalized Value		NOI Enhancing Per Home		Asset Preservation Per Home

Same Store	74,726	$	101	$	2,100	$	2,201	$	24,000	(6)	$	34,361	$	83,384	$	141,745	$	460	$	1,116
Other Stabilized	4,103	35		1,562		1,597		89,314		(7)	266		370		89,950		$	65	$	90
Development/Redevelopment (8)	7,460	9		470		479		633,212			—		—		633,212		—		—
Dispositions (9)	—	—		—		—		(235,209)			—		—		(235,209)		—		—
Total	86,289	$	90	$	1,934	$	2,024	$	511,317		$	34,627	$	83,754	$	629,698	N/A		N/A


(1)						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.
(2)						Includes consolidated communities and excludes communities that have been sold or that are classified as held for sale.
(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 $2,722 and $2,179, 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
Q3 2023	$	12,170	$	12,460
Q2 2023	$	11,606	$	13,458
Q1 2023	$	11,018	$	13,552
Q4 2022	$	10,430	$	11,600

Attachment 9

AvalonBay Communities, Inc.

Development Communities as of September 30, 2023

(unaudited)



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 October 11, 2023							Q3 '23

	Communities Under Construction:
1.	Avalon Amityville	Amityville, NY	338	$	135		Q2 2021	Q3 2023	Q2 2024	Q4 2024	$	3,350	28	%	24	%		11	%	3	%
2.	Avalon Bothell Commons I	Bothell, WA	467	236			Q2 2021	Q3 2023	Q3 2024	Q2 2025	2,965		11	%	10	%		8	%	7	%
3.	Avalon Westminster Promenade	Westminster, CO	312	110			Q3 2021	Q2 2024	Q3 2024	Q2 2025	2,130		—		—			—		—
4.	Avalon West Dublin	Dublin, CA	499	270			Q3 2021	Q4 2023	Q4 2024	Q2 2025	3,245		—		6	%		—		—
5.	Avalon Princeton Circle	Princeton, NJ	221	88			Q4 2021	Q2 2023	Q4 2023	Q2 2024	3,920		41	%	29	%		24	%	18	%
6.	Avalon Montville	Montville, NJ	349	127			Q4 2021	Q4 2023	Q3 2024	Q4 2024	2,895		—		3	%		—		—
7.	Avalon Redmond Campus (1)	Redmond, WA	214	85			Q4 2021	Q4 2023	Q2 2024	Q4 2024	2,795		—		—			—		—
8.	Avalon Governor's Park	Denver, CO	304	135			Q1 2022	Q3 2024	Q4 2024	Q2 2025	2,690		—		—			—		—
9.	Avalon West Windsor (2)	West Windsor, NJ	535	201			Q2 2022	Q2 2025	Q3 2026	Q1 2027	2,995		—		—			—		—
10.	Avalon Durham (3)	Durham, NC	336	125			Q2 2022	Q2 2024	Q3 2024	Q2 2025	2,270		—		—			—		—
11.	Avalon Annapolis	Annapolis, MD	508	202			Q3 2022	Q3 2024	Q3 2025	Q2 2026	2,700		—		—			—		—
12.	Kanso Milford	Milford, MA	162	65			Q4 2022	Q1 2024	Q3 2024	Q1 2025	2,600		—		—			—		—
13.	Avalon Lake Norman (3)	Mooresville, NC	345	101			Q1 2023	Q4 2024	Q4 2025	Q2 2026	1,945		—		—			—		—
14.	Avalon Hunt Valley West	Hunt Valley, MD	322	109			Q2 2023	Q1 2025	Q1 2026	Q3 2026	2,485		—		—			—		—
15.	Avalon South Miami (2)	South Miami, FL	290	186			Q3 2023	Q3 2025	Q1 2026	Q3 2026	4,535		—		—			—		—
16.	Avalon Princeton Shopping Center	Princeton, NJ	200	82			Q3 2023	Q1 2025	Q2 2025	Q4 2025	3,275		—		—			—		—
	Total / Weighted Average Under Construction		5,402	$	2,257						$	2,905

	Communities Completed this Quarter:
1.	Avalon Somerville Station	Somerville, NJ	374	$	121		Q4 2020	Q2 2022	Q3 2023	Q4 2023	$	3,160	100	%	96	%		93	%	90	%
2.	Avalon North Andover	North Andover, MA	221	77			Q2 2021	Q4 2022	Q3 2023	Q4 2023	2,795		100	%	98	%		97	%	86	%
3.	Avalon Merrick Park (3)	Miami, FL	254	104			Q2 2021	Q2 2023	Q3 2023	Q2 2024	3,625		100	%	56	%		48	%	28	%
	Communities Completed Subtotal/Weighted Average		849	$	302						$	3,205

	Total/Weighted Average Under Construction and Completed this quarter		6,251	$	2,559						$	2,945

	Total Weighted Average Projected NOI as a % of Total Capital Cost			6.0		%

Asset Cost Basis (millions) (4):
	Total Capital Cost, under construction and completed			$	2,742
	Total Capital Cost, disbursed to date			(1,688)
	Total Capital Cost, remaining to invest			$	1,054


(1)			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.

(2)			Developments containing at least 10,000 square feet of commercial space include Avalon West Windsor (19,000 sf) and Avalon South Miami (32,000 sf).

(3)			Communities being developed through the Developer Funding Program ("DFP"). The DFP utilizes third-party multifamily developers to source and construct communities which the Company owns and operates.

(4)			Includes the communities presented and two additional communities with 323 apartment homes representing $183 million in Total Capital Costs which completed construction but have not yet achieved Stabilized Operations for the full quarter. Q3 2023 total NOI for these 21 communities was $5 million.

Attachment 10

AvalonBay Communities, Inc.

Unconsolidated Real Estate Investments

September 30, 2023

(Dollars in thousands)

(unaudited)



Operating Communities
					NOI (1)(2)				Debt
		AVB		Apartment	Q3		YTD		Principal		Interest
Venture	Communities	Ownership		Homes	2023		2023		Amount (1)		Rate (3)

NYTA MF Investors, LLC	5	20.0	%	1,301	$	10,433	$	30,876	$	394,969	3.88	%
MVP I, LLC	1	25.0	%	313	2,179		6,368		103,000		3.24	%
Brandywine Apartments of Maryland, LLC	1	28.7	%	305	877		2,685		19,231		3.40	%
Avalon Alderwood MF, LLC	1	50.0	%	328	1,829		5,334		—		—	%
Total Unconsolidated Real Estate Investments	8			2,247	$	15,318	$	45,263	$	517,200	3.73	%

Development Communities

Projected

Avg

% Economic Occ.

Total Capital

Full Qtr

Monthly

AVB

Apartment

Cost

Initial

Stabilized

Rental Rev

Complete

Leased

Occupied

Venture

Location

Ownership

Homes

(millions) (1)

Start

Occupancy

Complete

Ops

Per Home

As of October 11, 2023

Q3 '23

Arts District Joint Venture (4)

Los Angeles, CA

25.0

475

288

Q3 2020

Q3 2023

Q4 2023

Q2 2024

3,360

(1)NOI, debt principal amount and projected Total Capital Cost are presented at 100% ownership.

(2)NOI excludes property management fees as the Company serves as the property management company for all ventures except Brandywine Apartments of Maryland, LLC.

(3)Represents the weighted average interest rate as of September 30, 2023.

(4)This development is expected to include 56,000 square feet of commercial space. As of September 30, 2023, the Company had contributed substantially all of its equity commitment. The remaining development costs are primarily expected to be funded by the venture's variable rate construction loan. The venture had drawn $127,803 of the $167,147 maximum borrowing capacity of the construction loan as of September 30, 2023.

Attachment 11

AvalonBay Communities, Inc.

Debt Structure and Select Debt Metrics

September 30, 2023

(Dollars in thousands)

(unaudited)



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	$	200	$	350,000	$	350,200
	Fixed rate	$	270,851	3.4	%	2024	9,100		300,000		309,100
	Variable rate	411,450		5.6	%	2025	9,700		825,000		834,700
	Subtotal, secured notes	682,301		4.7	%	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	7,250,000		3.3	%	2029	74,750		450,000		524,750
	Subtotal, unsecured notes	7,250,000		3.3	%	2030	9,000		700,000		709,000
						2031	9,600		600,000		609,600
Variable rate facility (3)		—		—	%	2032	10,300		700,000		710,300
Commercial paper (3)		70,000		5.9	%	Thereafter	282,451		1,300,000		1,582,451
Total Debt		$	8,002,301	3.4	%		$	682,301	$	7,250,000	$	7,932,301

SELECT DEBT METRICS

Q3 2023 Net Debt-to-Core EBITDAre (4)

4.1x

Q3 2023 Interest Coverage (4)

7.5x

YTD 2023 Unencumbered NOI (4)

95%

Weighted avg years to maturity of total debt (2)

7.5



DEBT COVENANT COMPLIANCE

Unsecured Line of Credit Covenants		September 30, 2023		Requirement

	Total Outstanding Indebtedness to Capitalization Value (5)	24.4	%	<	65%
	Combined EBITDA to Combined Debt Service	6.35x		>	1.50x
	Unsecured Indebtedness to Unencumbered Asset Value	22.6	%	<	65%
	Secured Indebtedness to Capitalization Value (5)	2.4	%	<	40%

Unsecured Senior Notes Covenants (6)		September 30, 2023		Requirement

	Total Outstanding Indebtedness to Total Assets (7)	29.6	%	<	65%
	Secured Indebtedness to Total Assets (7)	2.5	%	<	40%
	Unencumbered Assets to Unsecured Indebtedness	350.1	%	>	150%
	Consolidated Income Available for Debt Service to the Annual Service Charge	7.26x		>	1.50x


(1)			Rates are as of September 30, 2023 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 September 30, 2023 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. The weighted average contractual rate on the commercial paper outstanding is 5.5%.
(4)			See Attachment 12 - 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 September 30, 2023, 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 12 - 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 12 - 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 12 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

Attachment 12

AvalonBay Communities, Inc.

Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms

September 30, 2023

(unaudited)

This release, including its attachments, contains certain non-GAAP financial measures and other terms. The definitions and calculations of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. The non-GAAP financial measures referred to below should not be considered an alternative to net income as an indication of our performance. In addition, these non-GAAP financial measures do not represent cash generated from operating activities in accordance with GAAP and therefore should not be considered as an alternative measure of liquidity or as indicative of cash available to fund cash needs.

Asset Preservation Capex represents capital expenditures that the Company does not expect will directly result in increased revenue or expense savings.

Average Monthly Rental Revenue per Home, as calculated for certain Development communities in lease-up, reflects management’s projected stabilized rents net of estimated stabilized concessions, including estimated stabilized other rental revenue and excluding projected commercial revenue. Projected stabilized rents are based on one or more of the following: (i) actual average leased rents on apartments leased through quarter end, (ii) projected rollover rents on apartments leased through quarter end where the lease term expires within the first twelve months of Stabilized Operations and (iii) Market Rents on unleased homes.

Average Monthly Rental Revenue per Occupied Home is calculated by the Company as Residential rental revenue in accordance with GAAP, divided by the weighted average number of occupied apartment homes.

Commercial represents results attributable to the non-apartment components of the Company's mixed-use communities and other non-residential operations.

Debt Covenant Compliance ratios for the Unsecured Line of Credit Covenants show the Company's compliance with selected covenants provided in the Company’s Sixth Amended and Restated Revolving Loan Agreement dated as of September 27, 2022 which has been filed as an exhibit to the Company’s SEC reports. The ratios for the Unsecured Senior Notes Covenants show only the Company's compliance with selected covenants provided in the Company’s Indenture dated as of January 16, 1998, as supplemented by the First Supplemental Indenture dated as of January 20, 1998, Second Supplemental Indenture dated as of July 7, 1998, Amended and Restated Third Supplemental Indenture dated as of July 20, 2000, Fourth Supplemental Indenture dated as of September 18, 2006 and Fifth Supplemental Indenture dated as of November 21, 2014 (collectively, the “1998 Indenture"), which have been filed as exhibits to the Company’s SEC reports. Different covenants apply to debt securities outstanding under the Company’s Indenture dated as of February 23, 2018, as supplemented by the First Supplemental Indenture dated as of March 26, 2018 and the Second Supplemental Indenture dated as of May 29, 2018 (collectively, the “2018 Indenture”), which have been filed as exhibits to the Company's SEC reports. Compliance with selected covenants under the 2018 Indenture is excluded from the presentation of Debt Covenant Compliance in this release.

The Debt Covenant Compliance ratios are provided only to show the Company’s compliance with certain covenants contained in the 1998 Indenture governing a majority of the Company's unsecured debt securities and in the Company’s Credit Facility, as of the date reported. These ratios should not be used for any other purpose, including without limitation to evaluate the Company’s financial condition or results of operations, nor do they indicate the Company’s covenant compliance as of any other date or for any other period. The capitalized terms in the disclosure are defined in the Indenture or the Credit Facility, and may differ materially from similar terms (i) used elsewhere in this release and the Attachments and (ii) used by other companies that present information about their covenant compliance. For risks related to failure to comply with these covenants, see “Risk Factors – Risks related to indebtedness” and other risks discussed in the Company’s 2022 Annual Report on Form 10-K and the Company’s other reports filed with the SEC.

Development is composed of consolidated communities that are either currently under construction, or were under construction and were completed during the current year. These communities may be partially or fully complete and operating.

EBITDA, EBITDAre and Core EBITDAre are considered by management to be supplemental measures of our financial performance. EBITDA is defined by the Company as net income or loss computed in accordance with GAAP before interest expense, income taxes, depreciation and amortization. EBITDAre is calculated by the Company in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), as EBITDA plus or minus losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property, with adjustments to reflect the Company's share of EBITDAre of unconsolidated entities. Core EBITDAre is the Company’s EBITDAre as adjusted for non-core items outlined in the table below. By further adjusting for items that are not considered part of the Company’s core business operations, Core EBITDAre can help one compare the core operating and financial performance of the Company between periods. A reconciliation of EBITDA, EBITDAre and Core EBITDAre to net income is as follows (dollars in thousands):

Attachment 12


TABLE 1
	Q3
	2023
Net income	$	171,790
Interest expense and loss on extinguishment of debt	59,091
Income tax expense	4,372
Depreciation expense	200,982
EBITDA	$	436,235

Casualty loss	3,499
Gain on sale of communities	(22,121)
Unconsolidated entity EBITDAre adjustments (1)	2,770
EBITDAre	$	420,383

Unconsolidated entity losses, net	827
Joint venture promote	(424)
Structured Investment Program loan reserve	539
Hedge accounting activity	65
Executive transition compensation costs	300
Severance related costs	993
Expensed transaction, development and other pursuit costs, net of recoveries	18,070
Other real estate activity	(237)
Legal settlements	14
Core EBITDAre	$	440,530

(1) Includes joint venture interest, taxes, depreciation, gain on dispositions of depreciated real estate and impairment losses, if applicable, included in net income.

Economic (Loss) Gain is calculated by the Company as the gain on sale in accordance with GAAP, less accumulated depreciation through the date of sale and any other adjustments that may be required under GAAP accounting. Management generally considers Economic (Loss) Gain to be an appropriate supplemental measure to gain on sale in accordance with GAAP because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold community. The Economic (Loss) Gain for disposed communities is based on their respective final settlement statements. A reconciliation of the aggregate Economic (Loss) Gain to the aggregate gain on sale in accordance with GAAP for the wholly-owned communities disposed of during the three and nine months ended September 30, 2023 is as follows (dollars in thousands):


TABLE 2
	Q3 2023		YTD 2023
GAAP Gain	$	22,345	$	209,686

Accumulated Depreciation and Other	(24,754)		(88,817)

Economic (Loss) Gain	$	(2,409)	$	120,869

Economic Occupancy is defined as total possible Residential revenue less vacancy loss as a percentage of total possible Residential revenue. Total possible Residential revenue (also known as “gross potential”) is determined by valuing occupied units at contract rates and vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant apartments at their Market Rents, Economic Occupancy takes into account the fact that apartment homes of different sizes and locations within a community have different economic impacts on a community’s gross revenue.

Attachment 12

FFO and Core FFO are generally considered by management to be appropriate supplemental measures of our operating and financial performance. FFO is calculated by the Company in accordance with the definition adopted by Nareit. FFO is calculated by the Company as Net income or loss attributable to common stockholders computed in accordance with GAAP, adjusted for gains or losses on sales of previously depreciated operating communities, cumulative effect of a change in accounting principle, impairment write-downs of depreciable real estate assets, write-downs of investments in affiliates which are driven by a decrease in the value of depreciable real estate assets held by the affiliate and depreciation of real estate assets, including adjustments for unconsolidated partnerships and joint ventures. FFO can help one compare the operating and financial performance of a real estate company between periods or as compared to different companies because adjustments such as (i) gains or losses on sales of previously depreciated property or (ii) real estate depreciation may impact comparability between companies as the amount and timing of these or similar items can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates. Core FFO is the Company's FFO as adjusted for non-core items outlined in the table below. By further adjusting for items that are not considered by us to be part of our core business operations, Core FFO can help with the comparison of core operating performance of the Company between periods. A reconciliation of Net income attributable to common stockholders to FFO and to Core FFO is as follows (dollars in thousands):

Attachment 12


TABLE 3
	Q3		Q3		YTD		YTD
	2023		2022		2023		2022
Net income attributable to common stockholders	$	172,031	$	494,747	$	686,856	$	895,482
Depreciation - real estate assets, including joint venture adjustments	199,546		205,489		602,023		604,634
Distributions to noncontrolling interests	—		12		25		36
Gain on sale of unconsolidated entities holding previously depreciated real estate	—		(38,062)		—		(38,062)
Gain on sale of previously depreciated real estate	(22,121)		(318,289)		(209,430)		(467,493)
Casualty loss on real estate	3,499		—		8,550		—
FFO attributable to common stockholders	352,955		343,897		1,088,024		994,597

Adjusting items:
Unconsolidated entity losses (gains), net (1)	827		307		(4,024)		(1,988)
Joint venture promote (2)	(424)		(4,690)		(1,496)		(4,690)
Structured Investment Program loan reserve (3)	539		45		415		1,653
Loss on extinguishment of consolidated debt	150		1,646		150		1,646
Hedge accounting activity	65		(64)		256		(496)
Advocacy contributions	—		—		200		534
Executive transition compensation costs	300		411		944		1,220
Severance related costs	993		574		2,493		639
Expensed transaction, development and other pursuit costs, net of recoveries (4)	18,070		5,783		21,318		7,781
Other real estate activity	(237)		(319)		(707)		(564)
For-sale condominium imputed carry cost (5)	110		400		534		2,035
Legal settlements (6)	14		(3,677)		64		(3,418)
Income tax expense (7)	4,372		5,651		7,715		7,963
Core FFO attributable to common stockholders	$	377,734	$	349,964	$	1,115,886	$	1,006,912

Average shares outstanding - diluted	142,198,099		139,981,959		141,448,675		139,964,172

Earnings per share - diluted	$	1.21	$	3.53	$	4.86	$	6.40
FFO per common share - diluted	$	2.48	$	2.46	$	7.69	$	7.11
Core FFO per common share - diluted	$	2.66	$	2.50	$	7.89	$	7.19

(1) Amounts consist primarily of net unrealized gains on technology investments.
(2) Amounts for 2023 and 2022 are 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 SIP. The timing and amount of any actual losses that will be incurred, if any, is to be determined.
(4) Amounts for 2023 include the write-offs of $17,111 for three development opportunities in Northern and Southern California and the Mid-Atlantic that the Company determined are no longer probable. Amounts for 2022 include the write-off of $5,335 for a development opportunity in the Pacific Northwest that the Company determined is no longer probable.
(5) 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.
(6) In 2022, the Company received $6,000 of legal settlement proceeds, of which $3,684 is adjusted for Core FFO.
(7) Amounts are primarily for the recognition of taxes associated with The Park Loggia.

Interest Coverage is calculated by the Company as Core EBITDAre divided by interest expense. Interest Coverage is presented by the Company because it provides rating agencies and investors an additional means of comparing our ability to service debt obligations to that of other companies. A calculation of Interest Coverage for the three months ended September 30, 2023 is as follows (dollars in thousands):

Attachment 12


TABLE 4

Core EBITDAre (1)	$	440,530

Interest expense (2)	$	59,091

Interest Coverage	7.5 times

(1) For additional detail, see Attachment 12 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 1.
(2) Excludes the impact of non-core hedge accounting activity.

Like-Term Effective Rent Change for an individual apartment home represents the percentage change in effective rent between two leases of the same lease term category for the same apartment. The Company defines effective rent as the contractual rent for an apartment less amortized concessions and discounts. Like-Term Effective Rent Change with respect to multiple apartment homes represents an average. New Move-In Like-Term Effective Rent Change is the change in effective rent between the contractual rent for a resident who moves out of an apartment, and the contractual rent for a resident who moves into the same apartment with the same lease term category. Renewal Like-Term Effective Rent Change is the change in effective rent between two consecutive leases of the same lease term category for the same resident occupying the same apartment. Like-term effective rent change as presented excludes any third-party managed communities for the three months ended September 30, 2023.

Market Cap Rate is defined by the Company as Projected NOI of a single community for the first 12 months of operations (assuming no repositioning), less estimates for non-routine allowance of approximately $300 - $500 per apartment home, divided by the gross sales price for the community. Projected NOI, as referred to above, represents management’s estimate of projected rental revenue minus projected operating expenses before interest, income taxes (if any), depreciation and amortization. For this purpose, management’s projection of operating expenses for the community includes a management fee of 2.25%. The Market Cap Rate, which may be determined in a different manner by others, is a measure frequently used in the real estate industry when determining the appropriate purchase price for a property or estimating the value for a property. Buyers may assign different Market Cap Rates to different communities when determining the appropriate value because they (i) may project different rates of change in operating expenses and capital expenditure estimates and (ii) may project different rates of change in future rental revenue due to different estimates for changes in rent and occupancy levels. The weighted average Market Cap Rate is weighted based on the gross sales price of each community.

Market Rents as reported by the Company are based on the current market rates set by the Company based on its experience in renting apartments and publicly available market data. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions.

Net Debt-to-Core EBITDAre is calculated by the Company as total debt (secured and unsecured notes, and the Company's Credit Facility and commercial paper program) that is consolidated for financial reporting purposes, less consolidated cash and restricted cash, divided by annualized third quarter 2023 Core EBITDAre. A calculation of Net Debt-to-Core EBITDAre is as follows (dollars in thousands):


TABLE 5

Total debt principal (1)	$	8,002,301
Cash and cash equivalents and restricted cash	(742,579)
Net debt	$	7,259,722

Core EBITDAre (2)	$	440,530

Core EBITDAre, annualized	$	1,762,120

Net Debt-to-Core EBITDAre	4.1 times

(1) Balance at September 30, 2023 excludes $42,207 of debt discount and deferred financing costs as reflected in unsecured notes, net, and $13,089 of debt discount and deferred financing costs as reflected in notes payable, net, on the Condensed Consolidated Balance Sheets.
(2) For additional detail, see Attachment 12 - Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms, table 1.

Attachment 12

NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excluding corporate-level income (including management, development and other fees), corporate-level property management and other indirect operating expenses, expensed transaction, development and other pursuit costs, net of recoveries, interest expense, net, loss on extinguishment of debt, net, general and administrative expense, income from unconsolidated investments, depreciation expense, income tax expense (benefit), casualty loss, gain on sale of communities, other real estate activity and net operating income from real estate assets sold or held for sale. The Company considers NOI to be an important and appropriate supplemental performance measure to net income of operating performance of a community or communities because it helps both investors and management to understand the core operations of a community or communities prior to the allocation of any corporate-level property management overhead or financing-related costs. NOI reflects the operating performance of a community, and allows for an easier comparison of the operating performance of individual assets or groups of assets. In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impact to overhead as a result of acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or groups of assets.

Residential NOI represents results attributable to the Company's apartment rental operations, including parking and other ancillary Residential revenue. A reconciliation of Residential NOI to net income, as well as a breakdown of Residential NOI by operating segment, is as follows (dollars in thousands):

Attachment 12


TABLE 6
	Q3		Q3		Q2		Q1		Q4		YTD		YTD
	2023		2022		2023		2023		2022		2023		2022
Net income	$	171,790	$	494,632	$	367,807	$	146,775	$	241,164	$	686,372	$	895,274
Property management and other indirect operating expenses, net of corporate income	30,421		29,374		28,972		30,784		26,081		90,177		88,119
Expensed transaction, development and other pursuit costs, net of recoveries	18,959		6,514		1,261		2,992		6,700		23,212		9,865
Interest expense, net	48,115		57,290		51,585		56,821		57,461		156,521		172,613
Loss on extinguishment of debt, net	150		1,646		—		—		—		150		1,646
General and administrative expense	20,466		14,611		17,676		20,400		20,741		58,542		53,323
Income from unconsolidated investments	(1,930)		(43,777)		(4,970)		(4,845)		(6,820)		(11,745)		(46,574)
Depreciation expense	200,982		206,658		200,546		204,743		207,232		606,271		607,746
Income tax expense (benefit)	4,372		5,651		(217)		3,560		6,683		7,715		7,963
Casualty loss	3,499		—		—		5,051		—		8,550		—
(Gain) loss on sale of communities	(22,121)		(318,289)		(187,322)		13		(88,065)		(209,430)		(467,493)
Other real estate activity	(237)		(319)		(341)		(129)		(4,563)		(707)		(564)
NOI from real estate assets sold or held for sale	(2,089)		(10,994)		(5,652)		(6,471)		(7,095)		(14,212)		(39,583)
NOI	472,377		442,997		469,345		459,694		459,519		1,401,416		1,282,335

Commercial NOI	(8,098)		(10,801)		(8,529)		(8,565)		(9,158)		(25,192)		(26,494)
Residential NOI	$	464,279	$	432,196	$	460,816	$	451,129	$	450,361	$	1,376,224	$	1,255,841

Residential NOI
Same Store:
New England	$	60,944	$	58,356	$	61,567	$	59,241	$	59,677	$	181,752	$	166,148
Metro NY/NJ	89,084		85,428		89,090		88,989		90,837		267,163		246,938
Mid-Atlantic	63,158		59,078		63,437		62,950		62,304		189,545		174,953
Southeast FL	11,889		11,048		11,984		12,172		11,359		36,045		31,335
Denver, CO	5,061		4,905		4,821		4,945		5,121		14,827		14,531
Pacific NW	29,069		29,085		29,657		29,411		28,929		88,137		84,130
N. California	75,209		72,543		75,767		74,123		73,386		225,099		211,932
S. California	94,739		87,337		93,195		89,507		89,178		277,441		266,509
Other Expansion Regions	3,769		3,533		3,864		3,934		3,853		11,567		10,565
Total Same Store	432,922		411,313		433,382		425,272		424,644		1,291,576		1,207,041
Other Stabilized	20,926		16,541		19,701		19,765		20,237		60,392		37,032
Development/Redevelopment	10,431		4,342		7,733		6,092		5,480		24,256		11,768
Residential NOI	$	464,279	$	432,196	$	460,816	$	451,129	$	450,361	$	1,376,224	$	1,255,841

NOI as reported by the Company does not include the operating results from assets sold or classified as held for sale. A reconciliation of NOI from communities sold or classified as held for sale is as follows (dollars in thousands):


TABLE 7
	Q3		Q3		Q2		Q1		Q4		YTD		YTD
	2023		2022		2023		2023		2022		2023		2022

Revenue from real estate assets sold or held for sale	$	3,058	$	16,242	$	8,339	$	9,003	$	10,119	$	20,402	$	59,663
Operating expenses from real estate assets sold or held for sale	(969)		(5,248)		(2,687)		(2,532)		(3,024)		(6,190)		(20,080)
NOI from real estate assets sold or held for sale	$	2,089	$	10,994	$	5,652	$	6,471	$	7,095	$	14,212	$	39,583

Attachment 12

Commercial NOI is composed of the following components (in thousands):


TABLE 8
	Q3		Q3		Q2		Q1		Q4		YTD		YTD
	2023		2022		2023		2023		2022		2023		2022

Commercial Revenue	$	9,945	$	12,331	$	10,175	$	10,244	$	10,769	$	30,364	$	31,211
Commercial Operating Expenses	(1,847)		(1,530)		(1,646)		(1,679)		(1,611)		(5,172)		(4,717)
Commercial NOI	$	8,098	$	10,801	$	8,529	$	8,565	$	9,158	$	25,192	$	26,494

NOI Enhancing Capex represents capital expenditures that the Company expects will directly result in increased revenue or expense savings, and excludes any capital expenditures for redevelopment.

Other Stabilized is composed of completed consolidated communities that the Company owns, which have Stabilized Operations as of January 1, 2023, or which were acquired subsequent to January 1, 2022. Other Stabilized excludes communities that are conducting or are probable to conduct substantial redevelopment activities.

Projected FFO and Projected Core FFO, as provided within this release in the Company’s outlook, are calculated on a basis consistent with historical FFO and Core FFO, and are therefore considered to be appropriate supplemental measures to projected net income from projected operating performance. A reconciliation of the ranges provided for Projected FFO per share (diluted) for the fourth quarter and full year 2023 to the ranges provided for projected EPS (diluted) and corresponding reconciliation of the ranges for Projected FFO per share to the ranges for Projected Core FFO per share are as follows:


TABLE 9
		Low Range		High Range
Projected EPS (diluted) - Q4 2023		$	1.76	$	1.86
	Depreciation (real estate related)	1.43		1.43
	Gain on sale of communities	(0.54)		(0.54)
Projected FFO per share (diluted) - Q4 2023		2.65		2.75
	Expensed transaction, development and other pursuit costs, net of recoveries	0.01		0.01
	Advocacy contributions	0.03		0.03
Projected Core FFO per share (diluted) - Q4 2023		$	2.69	$	2.79

Projected EPS (diluted) - Full Year 2023		$	6.61	$	6.71
	Depreciation (real estate related)	5.69		5.69
	Gain on sale of communities	(2.02)		(2.02)
	Casualty loss	0.06		0.06
Projected FFO per share (diluted) - Full Year 2023		10.34		10.44
	Joint venture promote and unconsolidated entity gains, net	(0.03)		(0.03)
	Structured Investment Program loan reserve	0.01		0.01
	Executive transition compensation costs	0.01		0.01
	Severance related costs	0.02		0.02
	Expensed transaction, development and other pursuit costs, net of recoveries	0.16		0.16
	Income tax expense	0.05		0.05
	Other real estate activity	(0.01)		(0.01)
	Advocacy contributions	0.03		0.03
Projected Core FFO per share (diluted) - Full Year 2023		$	10.58	$	10.68

Attachment 12

Projected NOI, as used within this release for certain Development communities and in calculating the Market Cap Rate for dispositions, represents management’s estimate, as of the date of this release (or as of the date of the buyer’s valuation in the case of dispositions), of projected stabilized rental revenue minus projected stabilized operating expenses. For Development communities, Projected NOI is calculated based on the first twelve months of Stabilized Operations following the completion of construction. In calculating the Market Cap Rate, Projected NOI for dispositions is calculated for the first twelve months following the date of the buyer’s valuation. Projected stabilized rental revenue represents management’s estimate of projected gross potential minus projected stabilized economic vacancy and adjusted for projected stabilized concessions plus projected stabilized other rental revenue. Projected stabilized operating expenses do not include interest, income taxes (if any), depreciation or amortization, or any allocation of corporate-level property management overhead or general and administrative costs. In addition, projected stabilized operating expenses for Development communities do not include property management fee expense. Projected gross potential for Development communities and dispositions is generally based on leased rents for occupied homes and management’s best estimate of rental levels for homes which are currently unleased, as well as those homes which will become available for lease during the twelve-month forward period used to develop Projected NOI. The weighted average Projected NOI as a percentage of Total Capital Cost is weighted based on the Company’s share of the Total Capital Cost of each community, based on its percentage ownership.

Management believes that Projected NOI of the Development communities, on an aggregated weighted average basis, assists investors in understanding management's estimate of the likely impact on operations of the Development communities when the assets are complete and achieve stabilized occupancy (before allocation of any corporate-level property management overhead, general and administrative costs or interest expense). However, in this release the Company has not given a projection of NOI on a company-wide basis. Given the different dates and fiscal years for which NOI is projected for these communities, the projected allocation of corporate-level property management overhead, general and administrative costs and interest expense to communities under development is complex, impractical to develop, and may not be meaningful. Projected NOI of these communities is not a projection of the Company's overall financial performance or cash flow. There can be no assurance that the communities under development will achieve the Projected NOI as described in this release.

Redevelopment is composed of consolidated communities where substantial redevelopment is in progress or is probable to begin during the current year. Redevelopment is considered substantial when (i) capital invested during the reconstruction effort is expected to exceed the lesser of $5,000,000 or 10% of the community’s pre-redevelopment basis and (ii) physical occupancy is below or is expected to be below 90% during or as a result of the redevelopment activity. Redevelopment includes one community containing 714 apartment homes that is currently under active redevelopment as of September 30, 2023.

Residential represents results attributable to the Company's apartment rental operations, including parking and other ancillary Residential revenue.

Residential Rental Revenue with Concessions on a Cash Basis is considered by the Company to be a supplemental measure to Residential rental revenue in conformity with GAAP to help investors evaluate the impact of both current and historical concessions on GAAP-based Residential rental revenue and to more readily enable comparisons to revenue as reported by other companies. In addition, Residential Rental Revenue with Concessions on a Cash Basis allows an investor to understand the historical trend in cash concessions.

A reconciliation of Same Store Residential rental revenue in conformity with GAAP to Residential Rental Revenue with Concessions on a Cash Basis is as follows (dollars in thousands):


TABLE 10
	Q3		Q3			Q2			YTD		YTD
	2023		2022			2023			2023		2022
Residential rental revenue (GAAP basis)	$	635,318	$	603,957		$	627,534		$	1,878,017	$	1,756,209
Residential concessions amortized	4,066		3,469			3,265			10,433		19,059
Residential concessions granted	(6,194)		(2,225)			(2,768)			(12,539)		(6,764)

Residential Rental Revenue with Concessions on a Cash Basis	$	633,190	$	605,201		$	628,031		$	1,875,911	$	1,768,504

			Q3 2023 vs. Q3 2022			Q3 2023 vs. Q2 2023					YTD 2023 vs. YTD 2022

% change -- GAAP revenue			5.2		%	1.2		%			6.9		%

% change -- cash revenue			4.6		%	0.8		%			6.1		%

Attachment 12

Same Store is composed of consolidated communities where a comparison of operating results from the prior year to the current year is meaningful as these communities were owned and had Stabilized Operations, as defined below, as of the beginning of the respective prior year period. Therefore, for 2023 operating results, Same Store is composed of consolidated communities that have Stabilized Operations as of January 1, 2022, are not conducting or are not probable to conduct substantial redevelopment activities and are not held for sale or probable for disposition within the current year.

Stabilized Operations/Restabilized Operations is defined as the earlier of (i) attainment of 90% physical occupancy or (ii) the one-year anniversary of completion of development or redevelopment.

Total Capital Cost includes all capitalized costs projected to be or actually incurred to develop the respective Development or Redevelopment community, including land acquisition costs, construction costs, real estate taxes, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees and a contingency estimate, offset by proceeds from the sale of any associated land or improvements, all as determined in accordance with GAAP. Total Capital Cost also includes costs incurred related to first generation commercial tenants, such as tenant improvements and leasing commissions. For Redevelopment communities, Total Capital Cost excludes costs incurred prior to the start of redevelopment when indicated. With respect to communities where development or redevelopment was completed in a prior period or the current period, Total Capital Cost reflects the actual cost incurred, plus any contingency estimate made by management. Total Capital Cost for communities identified as having joint venture ownership, either during construction or upon construction completion, represents the total projected joint venture contribution amount. For joint ventures not in construction, Total Capital Cost is equal to gross real estate cost.

Uncollectible lease revenue and government rent relief

The following table provides uncollectible Residential lease revenue as a percentage of total Residential rental revenue in the aggregate and excluding amounts recognized from government rent relief programs in each respective period. Government rent relief reduces the amount of uncollectible Residential lease revenue. The Company expects the amount of rent relief recognized to continue to decline in 2023 absent additional funding from the Federal government.


TABLE 11
	Same Store Uncollectible Residential Lease Revenue
	Q3				Q3				Q2				Q1
	2023				2022				2023				2023
	Total		Excluding Rent Relief		Total		Excluding Rent Relief		Total		Excluding Rent Relief		Total		Excluding Rent Relief
New England	0.9	%	1.2	%	0.9	%	1.5	%	0.6	%	1.1	%	0.9	%	1.4	%
Metro NY/NJ	2.3	%	2.7	%	1.8	%	3.3	%	2.3	%	3.2	%	2.4	%	3.5	%
Mid-Atlantic	2.2	%	2.4	%	2.3	%	2.7	%	1.9	%	2.3	%	2.6	%	2.7	%
Southeast FL	3.0	%	3.0	%	3.5	%	4.6	%	2.6	%	3.1	%	2.3	%	3.0	%
Denver, CO	1.5	%	1.5	%	0.2	%	0.7	%	1.0	%	1.0	%	1.4	%	1.7	%
Pacific NW	1.6	%	1.8	%	0.9	%	1.3	%	0.8	%	1.0	%	0.9	%	1.2	%
N. California	1.2	%	1.4	%	1.0	%	2.2	%	1.2	%	1.3	%	1.7	%	1.9	%
S. California	2.5	%	2.7	%	4.5	%	5.9	%	3.4	%	3.5	%	4.9	%	5.2	%
Other Expansion Regions	0.5	%	0.5	%	1.4	%	1.4	%	0.3	%	0.3	%	0.6	%	0.6	%
Total Same Store	1.9	%	2.1	%	2.2	%	3.2	%	1.9	%	2.3	%	2.5	%	3.0	%

Unconsolidated Development is composed of communities that are either currently under construction, or were under construction and were completed during the current year, in which we have an indirect ownership interest through our investment interest in an unconsolidated joint venture. These communities may be partially or fully complete and operating.

Unencumbered NOI as calculated by the Company represents NOI generated by real estate assets unencumbered by outstanding secured notes payable as of September 30, 2023 as a percentage of total NOI generated by real estate assets. The Company believes that current and prospective unsecured creditors of the Company view Unencumbered NOI as one indication of the borrowing capacity of the Company. Therefore, when reviewed together with the Company’s Interest Coverage, EBITDA and cash flow from operations, the Company believes that investors and creditors view Unencumbered NOI as a useful supplemental measure for determining the financial flexibility of an entity. A calculation of Unencumbered NOI for the nine months ended September 30, 2023 is as follows (dollars in thousands):

Attachment 12


TABLE 12
	YTD 2023
	NOI
Residential NOI:
Same Store	$	1,291,576
Other Stabilized	60,392
Development/Redevelopment	24,256
Total Residential NOI	1,376,224
Commercial NOI	25,192
NOI from real estate assets sold or held for sale	14,212
Total NOI generated by real estate assets	1,415,628
Less NOI on encumbered assets	(66,572)
NOI on unencumbered assets	$	1,349,056

Unencumbered NOI	95		%