Avalonbay Communities, Inc. · NYSE:AVB
Avalonbay Communities — Q4 2024 Earnings Presentation
33 slides from Avalonbay Communities's earnings presentation, Feb 6, 2025
Slide 1: Investor Teleconference Presentation Fourth Quarter 2024
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] INVESTOR TELECONFERENCE PRESENTATION FOURTH QUARTER 2024 FEBRUARY 6, 2025 Avalon Westminster Promenade Westminster, CO
Slide 2: See Appendix for forward-looking statements and non-GAAP information
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] See Appendix for information about forward- looking statements and definitions and reconciliations of non-GAAP financial measur
Slide 3: Participants
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, PARTICIPANTS WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] BEN SCHALL Chief Executive Officer & President KEVIN O’SHEA Chief Financial Officer MATT BIRENBAUM Chief Investmen
Slide 4: Review of 4Q and Full Year 2024 Results and Activity
[FAVORABLE SUPPLY REVIEW OF 4Q ANDBACKDROP FULL YEARFOR ESTABLISHED 2024 RESULTS REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] AND ACTIVITY [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 4Q | FULL YEAR RESULTS AND ACTIVITY 4Q FULL YEAR CORE FFO PER SHARE GROWTH Y
Slide 5: Positioned for Continued Outperformance in 2025
POSITIONED FOR CONTINUED OUTPERFORMANCE IN 2025 Strategic Focus Areas To Deliver Superior Growth 1 INNOVATE AND TRANSFORM OPERATIONS Driving Incremental NOI OPTIMIZE P0RTFOLIO ALLOCATION AND 2 PERFORMANCE Positioning for superior growth 3 GROW BY LEVERAGING DEVELOPMENT CAPABILITIES Generating accret
Slide 6: Innovate and Transform Operations
[FAVORABLE SUPPLY 1 INNOVATE AND BACKDROP TRANSFORM FOR ESTABLISHED REGIONS PERSISTS, OPERATIONS DELIVERED WHILE $39M OF THE SUNBELT ANNUAL TO CONTINUES INCREMENTAL NOI THROUGH DIGEST STANDING YEAR-END 2024 AND INVENTORY] PROJECTING ANOTHER [SUBURBAN COASTAL PORTFOLIO $9M POSITIONED IN 2025; ADVANCI
Slide 7: Optimize Portfolio Allocation and Performance
[FAVORABLE SUPPLY 2 OPTIMIZE PORTFOLIO BACKDROP ALLOCATION AND FOR ESTABLISHED REGIONS PERSISTS, PERFORMANCE INCREASING ALLOCATION WHILE THE SUNBELT TO THE CONTINUES SUBURBS TO DIGEST AND AVB STANDING EXPANSION REGIONS INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 2024 TRANSACTION
Slide 8: Grow by Leveraging Development Capabilities
[FAVORABLE SUPPLYDEVELOPMENT 3 GROW BY LEVERAGING BACKDROPCAPABILITIES FOR ESTABLISHED REGIONS PERSISTS, RAMPING WHILE THE DEVELOPMENT START SUNBELT CONTINUES TOACTIVITY TO $1.6BINVENTORY] DIGEST STANDING IN 2025; BROADENING DEVELOPMENT [SUBURBAN COASTAL PORTFOLIO CAPABILITIES TO MULTIPLE GROWTH CHA
Slide 9: Leverage Growth-Oriented Balance Sheet
[FAVORABLE SUPPLY BACKDROP 4 LEVERAGE GROWTH-ORIENTED BALANCEFOR ESTABLISHED REGIONS PERSISTS, SHEET UTILIZING WHILE THE BALANCE SHEET STRENGTH SUNBELT CONTINUES TOSTANDING TO DIGEST SUPPORT EXTERNAL GROWTH; INVENTORY] FORWARD EQUITY [SUBURBAN COASTAL PROCEEDS PORTFOLIO POSITIONED TO FUND ≈ 50% OF A
Slide 10: Full Year 2025 Outlook Summary
[FAVORABLE SUPPLY FULL YEAR 2025 BACKDROP OUTLOOK FOR ESTABLISHED REGIONS PERSISTS, SUMMARY WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 2025 OUTLOOK(1) FULL YEAR PROJECTED CORE FFO PER SHARE GROWTH 3.5% MIDPOINT OF OUTLOOK RANGE SAM
Slide 11: Core FFO per Share Growth Drivers for 2025
[FAVORABLE SUPPLYCORE 2025 PROJECTED BACKDROP FORSHARE FFO PER ESTABLISHED GROWTHREGIONS PERSISTS, DRIVERS PARTIALLY OFFSET WHILE THE SUNBELT BY CAPITAL MARKETSCONTINUES TO DIGEST STANDING INVENTORY] ACTIVITIES [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] COMPONENTS OF 2025 FULL YEAR PROJEC
Slide 12: U.S. Job and Wage Growth Forecasts
U.S. JOB AND [FAVORABLE WAGEBACKDROP SUPPLY GROWTH FORECASTS MODERATING FOR ESTABLISHED REGIONS IN 2025, PERSISTS, WHILE THE SUNBELT JOB GROWTH CONTINUES IN KEY TO DIGEST AVB RESIDENT STANDING SECTORS INVENTORY] EXPECTED TO IMPROVE [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] U.S. TOTAL PER
Slide 13: Rental Affordability Has Improved in Established Regions
RENTAL AFFORDABILITY [FAVORABLE HAS IMPROVED SUPPLY BACKDROP IN AVBREGIONS FOR ESTABLISHED ESTABLISHED REGIONS; PERSISTS, WHILE THEREMAINS RENTING SUNBELT CONTINUES TO DIGEST SIGNIFICANTLY MORESTANDING INVENTORY] AFFORDABLE THAN HOMEOWNERSHIP [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] STR
Slide 14: Outlook for AVB Established Regions; Suburban Portfolio Well Positioned
FAVORABLESUPPLY [FAVORABLE SUPPLYBACKDROP OUTLOOK FOR FORESTABLISHED AVB ESTABLISHED REGIONS; REGIONS PERSISTS, WHILE AVB’S THE SUNBELTPORTFOLIO SUBURBAN CONTINUES TO DIGEST STANDING RELATIVELY INVENTORY] WELL POSITIONED [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] PROJECTED 2025 NEW MARKET
Slide 15: Same Store Revenue Growth Outlook
SAME STORE [FAVORABLE REVENUE SUPPLY GROWTH BACKDROP FOROUTLOOK DRIVEN ESTABLISHED BY ANPERSISTS, REGIONS INCREASE IN LEASE RATES, OTHER WHILE THE RENTAL SUNBELT REVENUE, CONTINUES AND LOWER TO DIGEST UNCOLLECTIBLE STANDING INVENTORY] LEASE REVENUE [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFOR
Slide 16: Same Store Revenue Growth Projected by Region
[FAVORABLE SAME STORESUPPLY BACKDROP REVENUE GROWTH FORPROJECTED ESTABLISHED TOREGIONS PERSISTS, BE RELATIVELY SIMILAR ON WHILEAND EAST THE SUNBELT CONTINUES WEST COASTS TO DIGEST STANDING INVENTORY] IN 2025 [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] PROJECTED 2025 FULL YEAR SAME STORE RE
Slide 17: Same Store Operating Expense Growth Projected to Decelerate
[FAVORABLE SAME STORE SUPPLY BACKDROP OPERATING FOR ESTABLISHED EXPENSE REGIONS PERSISTS, GROWTH PROJECTED TO DECELERATE WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] AS OPERATING INITIATIVES AND TAX ABATEMENT PRESSURES EASE [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] PROJECTED
Slide 18: Projecting Accretive Investments Across Multiple Platforms
PROJECTING ACCRETIVE [FAVORABLE SUPPLY INVESTMENTS BACKDROP IN 2025 REGIONS FOR ESTABLISHED ACROSS PERSISTS, MULTIPLE PLATFORMS WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] DEVELOPMENT $ 1.6 BILLION OF NEW STARTS • Low-to-mid 6% wtd.
Slide 19: Development Start Activity Concentrated in Expansion Regions and West Coast
START ACTIVITY [FAVORABLE CONCENTRATED SUPPLY BACKDROP FORINESTABLISHED AVB EXPANSION REGIONS REGIONS AND WEST COAST; PERSISTS, WHILE THE SUNBELT EXCLUSIVELY CONTINUES IN SUBURBAN TO DIGEST STANDING INVENTORY] SUBMARKETS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] PROJECTED 2025 DEVELOPMEN
Slide 20: Key Takeaways
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, KEY TAKEAWAYS WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] • Delivered strong financial and operating results in 2024 → Core FFO per share increased 3.6% → Same Store Resid
Slide 21: Appendix
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 21
Slide 22: Forward-Looking Statements
FORWARD-LOOKING [FAVORABLE STATEMENTS SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] This presentation dated February 6, 2025 is provided in connection with AvalonBay’s fourth quarter 2
Slide 23: Definitions and Reconciliations of Non-GAAP Financial Measures
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 2024 Forward Equity Activity, as discussed in this
Slide 24: Definitions and Reconciliations of Non-GAAP Financial Measures
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] EBITDA, EBITDAre and Core EBITDAre are considered
Slide 25: Definitions and Reconciliations of Non-GAAP Financial Measures
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 1) Includes joint venture interest, taxes, depreci
Slide 26: Definitions and Reconciliations of Non-GAAP Financial Measures
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Q4 Q4 Full Year Full Year 2024 2023 2024 2023 Net
Slide 27: Definitions and Reconciliations of Non-GAAP Financial Measures
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 1) Amounts consist primarily of net unrealized gai
Slide 28: Definitions and Reconciliations of Non-GAAP Financial Measures
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Like-Term Effective Rent Change for an individual
Slide 29: Definitions and Reconciliations of Non-GAAP Financial Measures
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Q4 2024 Total Capital Cost, disbursed to date $ 1,
Slide 30: Definitions and Reconciliations of Non-GAAP Financial Measures
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 1) Balance at December 31, 2024 excludes $41,216 o
Slide 31: Definitions and Reconciliations of Non-GAAP Financial Measures
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Projected NOI, as used within this presentation fo
Slide 32: Definitions and Reconciliations of Non-GAAP Financial Measures
DEFINITIONSSUPPLY [FAVORABLE AND RECONCILIATIONS OF NON-GAAP BACKDROP FOR ESTABLISHED FINANCIAL REGIONS MEASURES AND PERSISTS, WHILE OTHERTHE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] TERMS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Same Store is composed of consolidated communities
Slide 33: [FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 33
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