Avalonbay Communities, Inc. · NYSE:AVB
Avalonbay Communities — Q1 2025 Earnings Presentation
29 slides from Avalonbay Communities's earnings presentation, May 1, 2025
Slide 1: Investor Teleconference Presentation First Quarter 2025
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] INVESTOR TELECONFERENCE PRESENTATION FIRST QUARTER 2025 MAY 1, 2025 Avalon West Dublin Dublin, CA
Slide 2: Forward-Looking Statements
[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: Key Takeaways
[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, KEY TAKEAWAYS WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIOcoastal, • Supply-constrained POSITIONED TO OUTPERFORM] Suburban portfolio well-positioned heading into peak leasing season → Operating metr
Slide 5: Portfolio Across Markets, Submarkets, and Product Types
DIVERSIFIEDSUPPLY [FAVORABLE PORTFOLIO ACROSS BACKDROP FORLEADING MARKETS ESTABLISHED AND REGIONS PERSISTS, WHILE THE SUNBELT SUBMARKETS, ANDCONTINUES TO DIGESTTYPES ACROSS PRODUCT STANDING ANDINVENTORY] PRICE POINTS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Regional Allocation Submarket
Slide 6: High Occupancy and Minimal New Supply Support Pricing Power in Established Regions
HIGH OCCUPANCY [FAVORABLE SUPPLYAND MINIMAL BACKDROP FORNEW SUPPLY SUPPORT ESTABLISHED PRICING POWER REGIONS PERSISTS, WHILE THE SUNBELT IN ESTABLISHED CONTINUES TO DIGEST STANDING INVENTORY] REGIONS… [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] MARKET OCCUPANCY PROJECTED NEW MARKET RATE AP
Slide 7: Rental Affordability
…RENTAL AFFORDABILITY [FAVORABLE IS HEALTHY, SUPPLY BACKDROP AND RENTING FOR ESTABLISHED REMAINS REGIONS SIGNIFICANTLY PERSISTS, WHILE MORE THE SUNBELT CONTINUES AFFORDABLE TO DIGEST STANDING INVENTORY] THAN HOMEOWNERSHIP [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] INDEXED RENT-TO-INCOME R
Slide 8: 1Q25 Results and Activity
[FAVORABLE SUPPLY REVIEW OF 1Q25 BACKDROP RESULTS ANDFOR ESTABLISHED YTD ACTIVITY REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 1Q25 RESULTS AND ACTIVITY CORE FFO PER SHARE GROWTH 4.8% YEAR-OVER-YEAR SAME STORE RESID
Slide 9: Full Year Outlook
FULL YEAR OUTLOOK [FAVORABLE REAFFIRMED, SUPPLY BACKDROP WITH EXPECTED FOR ESTABLISHED SEASONAL REGIONS PERSISTS, INCREASE IN OPEX CONTINUES WHILE THE SUNBELT DURING 2QTO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] COMPONENTS OF 1Q 2025 TO 2Q 2025 PROJECTED CORE
Slide 10: Same Store Portfolio Metrics
SAME STORE [FAVORABLE PORTFOLIO SUPPLY METRICS BACKDROP HEALTHY IN 1Q; FOR ESTABLISHED REGIONS PERSISTS, PORTFOLIO WELL-POSITIONED WHILE THE SUNBELT HEADING CONTINUES TO INTO PEAKINVENTORY] DIGEST STANDING LEASING SEASON [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 2025 SAME STORE RESIDENTI
Slide 11: $3B of Development Underway
[FAVORABLE SUPPLY BACKDROP $3B OF DEVELOPMENT FOR ESTABLISHED UNDERWAY REGIONS PERSISTS, FULLY MATCH-FUNDED AND EXPECTED TO DRIVE WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] INCREMENTAL EARNINGS AND VALUE CREATION AS OCCUPANCIES RAMP [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM
Slide 12: Projected 2025 Development Starts
[FAVORABLE PROJECTED SUPPLY BACKDROP FORSTARTS 2025 DEVELOPMENT ESTABLISHED REGIONS BACK-HALF PERSISTS,TARIFF IMPACTS WEIGHTED; WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] BUFFERED BY SUBCONTRACTOR TAILWINDS AS INDUSTRY STARTS DECLINE [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFOR
Slide 13: Advancing Portfolio Optimization Objectives
[FAVORABLE ADVANCING SUPPLY BACKDROPOPTIMIZATION OUR PORTFOLIO FOR ESTABLISHED REGIONS PERSISTS, OBJECTIVES; WHILE $620MTHE IN SUNBELT CONTINUES TOENHANCES TEXAS ACQUISITIONS DIGEST STANDING SCALEINVENTORY] AT COMPELLING BASIS [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Suburban Allocation
Slide 14: Further Strengthening Our Preeminent Balance Sheet
[FAVORABLE FURTHER SUPPLY BACKDROP STRENGTHENING FOR OUR ESTABLISHEDBALANCE PREEMININET REGIONS PERSISTS, SHEET; WHILE THE SUNBELT PROVIDING CONTINUES FLEXIBILITY TO DIGEST TO FUND STANDING ACCRETIVE INVENTORY] GROWTH [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] KEY METRICS RECENT HIGHLIGHT
Slide 15: [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] 15
Slide 16: 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 May 1, 2025 is provided in connection with AvalonBay’s first quarter 2025 ea
Slide 17: 2024 Forward Equity Activity
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 18: EBITDA, EBITDAre and Core EBITDAre
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 19: FFO and Core FFO Definitions
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, deprec
Slide 20: [FAVORABLE BACKDROP FOR ESTABLISHED REGIONS
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] 20
Slide 21: Notes and Adjustments
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 for Q1 2025 consist primarily of net u
Slide 22: Market Cap Rate
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] Market Cap Rate is defined by the Company as Proje
Slide 23: Net Debt-to-Core EBITDAre
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] Net Debt-to-Core EBITDAre is calculated by the Com
Slide 24: NOI Definition
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] NOI is defined by the Company as total property re
Slide 25: Projected NOI Definition
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 26: Same Store and Suburban Definitions
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 27: Total Capital Cost Definition
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] Total Capital Cost includes all capitalized costs
Slide 28: Unencumbered NOI
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] Unencumbered NOI as calculated by the Company repr
Slide 29: [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] 29
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