AVALONBAY COMMUNITIES, INC. (NYSE:AVB) (the “Company”) announced today that for the three months ending September 30, 2021 it expects total residential rental revenue for Same Store communities to increase between 0.9% and 1.1% over the prior year period. The midpoint of this range is 180 basis points above what the Company’s expectation was for total residential rental revenue change for Same Store communities for the three months ending September 30, 2021 when the Company published its outlook on July 28, 2021. This outperformance is attributable to (i) lower-than-expected uncollectible lease revenue, due to higher-than-expected delinquent rent payments from COVID rental assistance programs(1), and (ii) better-than-expected effective lease rates and occupancy.
The Company also provided the following residential operating information for Same Store communities:
|
Average Physical Occupancy |
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|
2021 |
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|
Q1 |
Q2 |
July |
August |
September(2) |
|||||
| Suburban Communities |
95.6% |
96.3% |
96.4% |
96.5% |
96.3% |
||||
| Urban Communities |
93.6% |
94.8% |
94.8% |
95.9% |
96.1% |
||||
| Total |
95.0% |
95.9% |
96.0% |
96.3% |
96.3% |
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|
|
|
|
|
|
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|
Average Like-Term Effective Rent Change |
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|
2021 |
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|
Q1 |
Q2 |
July |
August |
September(2) |
|||||
| New England |
(10.4%) |
(1.8%) |
5.8% |
10.0% |
12.8% |
||||
| Metro New York / New Jersey |
(7.8%) |
(1.6%) |
4.0% |
8.1% |
11.4% |
||||
| Mid-Atlantic |
(8.0%) |
(2.2%) |
2.3% |
4.2% |
8.1% |
||||
| Southeast Florida |
1.0% |
7.3% |
16.2% |
19.3% |
23.8% |
||||
| Denver |
5.2% |
9.7% |
12.1% |
13.2% |
16.4% |
||||
| Pacific Northwest |
(11.7%) |
(0.5%) |
6.8% |
8.8% |
14.5% |
||||
| Northern California |
(15.7%) |
(7.5%) |
2.1% |
5.2% |
6.4% |
||||
| Southern California |
(1.4%) |
3.6% |
8.6% |
11.0% |
12.8% |
||||
| Total |
(8.3%) |
(1.3%) |
5.0% |
8.1% |
11.0% |
||||
|
|
|
|
|
|
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| Suburban Communities |
(3.8%) |
2.3% |
6.7% |
8.7% |
10.4% |
||||
| Urban Communities |
(17.4%) |
(8.3%) |
1.7% |
7.1% |
12.3% |
||||
| Total |
(8.3%) |
(1.3%) |
5.0% |
8.1% |
11.0% |
||||
The average Move-in Rent Value in September 2021, as of September 22, 2021, was approximately 24% above the average Move-in Rent Value for the month of December 2020, and it was approximately 6% above the average Move-in Rent Value for the month of September 2019.
|
(1) |
Between July 1st, 2021 and September 22nd, 2021, the Company recognized approximately $10 million of delinquent rent payments from COVID rental assistance programs as Same Store total residential rental revenue. This compares to the Company’s July 28, 2021 outlook for projected Same Store total residential rental revenue for the three months ending September 30, 2021, which included approximately $3 million of projected delinquent rent payments from COVID rental assistance programs. |
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(2) |
Data through September 22nd. |
In addition, the Company announced that it acquired:
- The Nexus Lakeside, located in Flower Mound, Texas, on September 1, 2021 for a purchase price of approximately $117 million. The Nexus Lakeside contains 425 apartment homes and approximately 18,000 square feet of commercial space.
- Hub South End, located in Charlotte, North Carolina, on September 23, 2021 for a purchase price of approximately $104 million. Hub South End contains 265 apartment homes and approximately 21,000 square feet of commercial space.
- Three30Five, located in Charlotte, North Carolina, on September 23, 2021 for a purchase price of approximately $53 million. Three30Five contains 164 apartment homes.
