INVESTOR TELECONFERENCE PRESENTATION - Fourth Quarter 2018 February 4, 2019 - Zone Bourse
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Avalon Dogpatch
San Francisco, CA
AVA North Point
INVESTOR TELECONFERENCE
PRESENTATION
Cambridge, MA
Fourth Quarter 2018
February 4, 2019
1
eaves South Coast
Costa Mesa, CA
See Appendix for information about
forward-looking statements and definitions
of non-GAAP financial measures and other terms.
2
PARTICIPANTS
TIM NAUGHTON CHAIRMAN & CHIEF EXECUTIVE OFFICER
KEVIN O’SHEA CHIEF FINANCIAL OFFICER
MATT BIRENBAUM CHIEF INVESTMENT OFFICER
SEAN BRESLIN CHIEF OPERATING OFFICER
3
2018 Review
REVIEW OF FOURTH QUARTER AND FULL YEAR RESULTS
2018 RESULTS Q4 FULL YEAR
CORE FFO PER SHARE GROWTH 2.7% 4.4%
SAME-STORE RENTAL REVENUE GROWTH | INCLUDING REDEVELOPMENT 2.7% | 2.8% 2.5% | 2.5%
DEVELOPMENT COMPLETIONS | WTD. AVG. INITIAL PROJECTED STABILIZED YIELD(1) N/A $ 740M | 6.4%
DEVELOPMENT STARTS $ 250M $ 720M
CAPITAL RAISED | WTD. AVG. INITIAL COST OF CAPITAL(2) $ 900M | ≈ 5.0% $ 1.7B | ≈ 4.7%
Source: Company reports.
See Appendix for defined terms and reconciliations, including a reconciliation of Net Income attributable to common stockholders to FFO and to Core FFO.
(1) AVA North Point (an unconsolidated joint venture community completed in Q3 2018) is excluded from the full year weighted average initial projected stabilized yield presented.
(2) Capital raised and weighted average initial cost of capital includes net proceeds from all debt (inclusive of the effect of interest rate hedges) and equity issuances, wholly-owned dispositions,
the New York City Joint Venture at share, and distributions and promotes from unconsolidated real estate entities.
4
2018 Review
TOTAL 2018 SAME-STORE REVENUE GROWTH CONSISTENT WITH 2017;
BOSTON AND NORTHERN CAL STRENGTHENED, PACIFIC NW SLOWED
AVB SAME-STORE RENTAL REVENUE GROWTH
YEAR-OVER-YEAR CHANGE
2017 & 2018
6%
5.4%
3.9%
3.6%
3%
3.0%
2.7%
2.5% 2.5% 2.4% 2.5%
2.1%
1.7% 1.8% 1.8%
1.6%
-
AVALONBAY NEW ENGLAND METRO NY/NJ MID-ATLANTIC PACIFIC NORTHERN SOUTHERN
NORTHWEST CALIFORNIA CALIFORNIA
2017 2018
Source: Company reports.
See Appendix for defined terms.
5
2018 Review
RENT GROWTH ACCELERATED IN THE SECOND HALF OF 2018
AVB SAME-STORE LIKE-TERM EFFECTIVE RENT CHANGE
YEAR-OVER-YEAR CHANGE
2017 & 2018
4%
3.3%
3.1%
2.8%
2.6% 2.5%
2%
1.8%
1.4% 1.3%
-
Q1 Q2 Q3 Q4
2017 2018
Source: Company reports.
See Appendix for defined terms.
Data presented is based on Established Communities for the three months ending December 31, 2018.
6
2018 Review
DEVELOPMENT COMPLETIONS DROVE EXTERNAL GROWTH LAST YEAR,
ALTHOUGH AT A LESSER RATE THAN IN PRIOR YEAR
AVB DEVELOPMENT COMPLETIONS AVB DEVELOPMENT DELIVERIES
2 8% 1,500
3,864 HOMES
$ 1.9B
NUMBER OF APARTMENT HOMES
6.4%
6.1%
$ BILLIONS
1,356 HOMES
1 4% 750
$ 0.7B
- - -
2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
TOTAL CAPITAL COST 2017 2018
WEIGHTED AVERAGE INITIAL PROJECTED STABILIZED YIELD
(RIGHT AXIS)
Source: Company reports.
See Appendix for defined terms.
72018 Review
≈ $1.7B IN NEW CAPITAL RAISED PRIMARILY THROUGH DISPOSITIONS
AT AN AVERAGE INITIAL COST OF 4.7%, 110 BASIS POINTS > 2017
2017 2018
AVB CAPITAL RAISED & WEIGHTED AVERAGE
TOTAL INITIAL COST TOTAL INITIAL COST
ESTIMATED INITIAL COST OF CAPITAL(1)
$ IN MILLIONS $ IN MILLIONS
DEBT(2) $ 1,890 3.1% $ 375 4.0%
WHOLLY-OWNED DISPOSITIONS 465 5.3% 610 4.6%
EQUITY 105 4.7% 45 5.0%
FUND DISTRIBUTIONS AND
95 2.9% 640 5.3%
THE NEW YORK CITY JOINT VENTURE AT SHARE
TOTAL $ 2,555 3.6% $ 1,670 4.7%
Source: Company reports.
(1) Capital raised and weighted average initial cost of capital includes net proceeds from all debt (inclusive of the effect of interest rate hedges) and equity issuances, wholly-owned dispositions,
the New York City Joint Venture at share, and distributions and promotes from unconsolidated real estate entities.
(2) Includes the Company’s pro rata share of secured debt originated in conjunction with the formation of the New York City Joint Venture.
82018 Review
DISPOSITION ACTIVITY RESULTED IN OUR LOWEST LEVERAGE
LEVEL SO FAR THIS CYCLE
AVB BALANCE SHEET METRICS Q4 2017 Q4 2018
NET DEBT-TO-CORE EBITDAre 4.9x 4.6x
INTEREST COVERAGE 7.0x 6.9x
UNENCUMBERED NOI 89% 91%
YEARS TO MATURITY OF TOTAL DEBT OUTSTANDING 9.9 9.7
Source: Company reports.
See Appendix for defined terms and reconciliations.
92018 Review
EXCELLING WITH MULTIPLE STAKEHOLDERS
CUSTOMER SATISFACTION ASSOCIATE ENGAGEMENT
#1 O N L I N E
REPUTATION
Among Public
32 NPS MID-LEASE
NET PROMOTER SCORE
4.3 GLASSDOOR
R AT I N G
Multifamily REITs +5 Points from 2017 Score
TOP WORKPLACE
4.5 GOOGLE
R AT I N G 5
in DC M ETRO
6,789 Reviews
CORPORATE RESPONSIBILITY
LEADER IN
SUSTAINABILITY TOP 100 FTSE4Good Index
CORPORATE Based on ESG (environmental,
Awarded 4 Stars social & governance)
CITIZEN GLOBALLY performance
Source: Company reports.
102019 Outlook
2019 OUTLOOK SUMMARY
2019 OUTLOOK FULL YEAR
PROJECTED CORE FFO PER SHARE RANGE $ 9.05 - $ 9.55
PROJECTED CORE FFO PER SHARE CHANGE AT THE MIDPOINT OF THE OUTLOOK RANGE 3.3%
SAME-STORE COMMUNITIES
RENTAL REVENUE CHANGE 2.5% - 3.5%
OPERATING EXPENSE CHANGE 2.5% - 3.5%
NET OPERATING INCOME CHANGE 2.5% - 3.5%
DEVELOPMENT ACTIVITY (MILLIONS)
EXPECTED TOTAL CAPITAL COST FOR DEVELOPMENT STARTS IN 2019 (AT SHARE) $ 850 - $ 1,050
EXPECTED TOTAL CAPITAL COST FOR DEVELOPMENT COMPLETIONS IN 2019(1) $ 640
PROJECTED NOI FROM DEVELOPMENT COMMUNITIES(2) $ 22 - $ 32
Source: Company reports.
See Appendix for defined terms and a reconciliation of Projected Net Income attributable to common stockholders to Projected FFO and to Projected Core FFO.
(1) Excludes projected Total Capital Cost for 15 West 61st Street of $620 million.
(2) Includes Projected NOI of $3.5 to $4.5 related to the retail portion of 15 West 61st Street.
112019 Outlook
PROJECTED 2019 CORE FFO GROWTH DRIVEN BY STABILIZED PORTFOLIO;
NO NET CONTRIBUTION FROM NEW INVESTMENT ACTIVITY…
COMPONENTS OF CORE FFO PER SHARE GROWTH
2018 ACTUAL 2019 PROJECTED
BASED ON THE MIDPOINT OF OUTLOOK
$9.36 $9.66
+$0.57 -$0.23 +$0.33 -$0.34
6.6% (2.7%) 3.7% (3.8%)
-$0.12
-$0.01
(1.4%)
(0.1%)
$8.99 $9.33
$9.00
+$0.38 +$0.32
$9.30
4.4% 3.6%
+$0.30
3.3%
+$0.16
1.9%
$8.62 $9.00
NOI FROM NOI FROM NEW CAPITAL MARKETS OVERHEAD, CORE FFO NOI FROM NOI FROM NEW CAPITAL MARKETS OVERHEAD, CORE FFO
SAME-STORE & INVESTMENT ACTIVITY JV INCOME & PER SHARE SAME-STORE & INVESTMENT ACTIVITY JV INCOME & PER SHARE
REDEVELOPMENT (incl. Dev.) (incl. Acq. & Disp.) MGMT FEES (GROWTH) REDEVELOPMENT (incl. Dev.) (incl. Acq. & Disp.) MGMT FEES (GROWTH)
Source: Company reports.
%s represent the contribution to actual and projected Core FFO per share growth.
122019 Outlook
…DUE TO A LOWER VOLUME OF DEVELOPMENT COMPLETIONS…
DEVELOPMENT COMPLETION VOLUME
& WEIGHTED AVERAGE INITIAL STABILIZED YIELD
2.50 12%
AVERAGE VOLUME ≈ $ 1.2B AVERAGE VOLUME ≈ $ 0.7B
$ 1.9B
$ BILLIONS
7.1%
6.7% 6.7% 6.4%
1.25 6.1% 6%
$ 1.3B
$ 1.1B
$ 0.7B
$ 0.6B
$ 0.5B
- -
2014 2015 2016 2017 2018 2019
PROJECTED(1)
TOTAL CAPITAL COST WEIGHTED AVERAGE INITIAL STABILIZED YIELD (RIGHT AXIS)
Source: Company reports.
See Appendix for defined terms.
(1) Excludes projected Total Capital Cost for 15 West 61st Street of $620 million.
132019 Outlook
….HIGHER COSTS ON FLOATING RATE DEBT…
VARIABLE RATE DEBT OUTSTANDING
& VARIABLE RATE DEBT INTEREST RATE
2 6%
AVERAGE VARIABLE RATE AVERAGE VARIABLE RATE
DEBT OUTSTANDING ≈ $ 1.3B DEBT OUTSTANDING ≈ $ 1.3B
$ 1.3B $ 1.4B $ 1.4B
$ BILLIONS
$ 1.3B $ 1.2B
3.2% $ 1.1B
1 3%
2.6%
2.2%
1.8% 1.8%
- -
2014 2015 2016 2017 2018 2019
PROJECTED
VARIABLE RATE DEBT OUTSTANDING (QUARTERLY AVERAGE) WEIGHTED AVERAGE INTEREST RATE (RIGHT AXIS)
Source: Company reports.
142019 Outlook
….AND INCREASED FUNDING COSTS OF RECENTLY ISSUED DEBT AND
ASSET SALES
CAPITAL RAISED & WEIGHTED AVERAGE INITIAL COST(1)
4 8%
AVERAGE AVERAGE
CAPITAL RAISED ≈ $ 1.8B CAPITAL RAISED ≈ $ 1.3B
$ BILLIONS
4.7%
4.3%
2 4.0% 4%
3.7% 3.6%
- -
2014 2015 2016 2017 2018 2019
DEBT PROJECTED
COMMON EQUITY
WHOLLY-OWNED DISPOSITIONS, JOINT VENTURE ACTIVITY AND FUND DISTRIBUTIONS
Source: Company reports.
See Appendix for defined terms. WEIGHTED AVERAGE INITIAL COST (RIGHT AXIS)
(1) Capital raised and weighted average initial cost of capital includes net proceeds from all debt (inclusive of the effect of interest rate hedges) and equity issuances, wholly-owned dispositions,
the New York City Joint Venture at share, and distributions and promotes from unconsolidated real estate entities.
15Economic Outlook
ECONOMIC GROWTH EXPECTED TO MODERATE IN 2019
2018 2019 COMMENTARY
GDP After a strong 2018 boosted by tax reform, the consensus outlook is for GDP growth to decelerate to 2.5% in 2019.
INDUSTRY
PROFITS Corporate profit growth is expected to slow.
HIRING 2018 was a rebound year for job growth. Labor tightness and Fed policy are expected to push job growth below 2 million in 2019.
INVESTMENT Investment was strong in 2018, but confidence is starting to erode and costs are rising.
TRADE Tariffs and slower global growth may dampen trade.
DEBT Non-financial corporate debt is at an all-time high, though balance sheets have not been overly pressured yet.
CONSUMER
INCOME The very tight market for labor should keep wages rising.
SPENDING Higher wages and confidence are leading to stronger consumer spending.
WEALTH Stocks are volatile, while homes prices continue to rise albeit at a moderating rate of growth.
DEBT Banks are wide open for business, but household borrowing remains conservative; late cycle concerns may tighten standards.
GOVERNMENT
FEDERAL SPENDING Deficit spending and procurement are set to rise sharply. However, government dysfunction and gridlock persist.
MONETARY POLICY The FOMC is starting to sound more dovish but absent sagging economic growth, rates are more likely to rise than fall.
STATE & LOCAL State and local payroll growth has flattened. Changes to the federal tax code may now pressure local spending in high tax areas.
Source: National Association for Business Economics, AVB Market Research Group.
16Economy & Labor Market
THE ECONOMY AND LABOR MARKET ARE WELL POSITIONED
AS WE START THE YEAR
1 GDP GROWTH REMAINS HEALTHY 2 JOB GROWTH IS STRONG
U.S. REAL GDP GROWTH U.S. EMPLOYMENT GROWTH
6% 4%
YEAR-OVER-YEAR CHANGE
SEASONALLY ADJUSTED
SEASONALLY ADJUSTED
ANNUALIZED RATE
4% 3%
2% 2%
- 1%
(2%) -
2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 2019
U.S. 25 TO 34 YR OLDS
3 EMPLOYERS HAVE PLENTY OF OPEN POSITIONS TO FILL; 4 …WHICH IS BEGINNING TO LURE MORE
WAGE GROWTH HIT A CYCLICAL HIGH IN LATE 2018… WORKERS INTO THE LABOR FORCE
U.S. JOB OPENINGS & U.S. AVERAGE HOURLY EARNINGS U.S. LABOR FORCE PARTICIPATION RATE
8 4% 64.5%
YEAR-OVER-YEAR CHANGE
SEASONALLY ADJUSTED
SEASONALLY ADJUSTED
SEASONALLY ADJUSTED
6 3% 64.0%
MILLIONS
4 2% 63.5%
2 1% 63.0%
- - 62.5%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019
JOB OPENINGS AVERAGE HOURLY EARNINGS (RIGHT AXIS)
Source: U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics.
17Consumer Fundamentals
THE CONSUMER IS IN GOOD SHAPE, SUPPORTING HEALTHY
CONSUMPTION AND HOUSEHOLD FORMATION
1 CONSUMERS ARE CONFIDENT… 2 …AND HOUSEHOLD FINANCIAL BURDENS REMAIN LOW
U.S. CONSUMER CONFIDENCE U.S. DEBT SERVICE RATIO & U.S. FINANCIAL OBLIGATIONS RATIO
150 15% 20%
INDEXED TO 100 IN 1985
SEASONALLY ADJUSTED
SEASONALLY ADJUSTED
SEASONALLY ADJUSTED
100 13% 18%
50 11% 16%
- 9% 14%
2011 2012 2013 2014 2015 2016 2017 2018 2019 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
DEBT SERVICE RATIO FINANCIAL OBLIGATIONS RATIO (RIGHT AXIS)
3 RETAIL SALES INCREASING 4 …AND THE RATE OF
AT A YEAR-OVER-YEAR PACE OF ≈ 5%... HOUSEHOLD FORMATION HAS IMPROVED
U.S. RETAIL SALES CHANGE IN THE NUMBER OF U.S. HOUSEHOLDS
9% 3
YEAR-OVER-YEAR CHANGE
SEASONALLY ADJUSTED
ANNUALIZED RATE
6% 2
MILLIONS
3% 1
- -
2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018
Source: The Conference Board, U.S. Board of Governors of the Federal Reserve, U.S. Census Bureau.
18Single Family Housing Market
AFTER YEARS OF RECOVERY AND EXPANSION THE FOR SALE MARKET
HAS BEGUN TO SLOW, DRIVEN BY DECLINING AFFORDABILITY
1 THE EXISTING FOR SALE HOME MARKET 2 …WHILE THE NEW-HOME MARKET SLOWED
PLATEAUED IN 2018… U.S. NEW SINGLE FAMILY HOME SUPPLY & SALES
U.S. EXISTING SINGLE FAMILY, CONDO AND CO-OP SUPPLY & SALES
9 6 9 900
SEASONALLY ADJUSTED
SEASONALLY ADJUSTED
SEASONALLY ADJUSTED
SEASONALLY ADJUSTED
ANNUALIZED RATE
ANNUALIZED RATE
THOUSANDS
6 4 6 600
MILLIONS
MONTHS
MONTHS
3 2 3 300
- - - -
2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018
MONTHS SUPPLY OF EXISTING HOMES ON THE MARKET MONTHS SUPPLY OF EXISTING HOMES ON THE MARKET
EXISTING HOME SALES (RIGHT AXIS) EXISTING HOME SALES (RIGHT AXIS)
3 HOUSING PRICES INCREASED STEADILY… 4 …AND MORTGAGE INTEREST RATES ROSE LAST YEAR
S&P CORELOGIC CASE-SHILLER INDEX; 20-METRO COMPOSITE FHFA INTEREST RATE TERMS ON CONVENTIONAL MORTGAGES
30 YEAR FIXED
YEAR-OVER-YEAR INDEX CHANGE
15% 6%
SEASONALLY ADJUSTED
10% 5%
5% 4%
- 3%
(5%) 2%
2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018
Source: National Association of Realtors, U.S. Census Bureau, S&P Dow Jones Indices, U.S. Federal Housing Finance Agency.
19Demographics
DEMOGRAPHICS AND FAMILY FORMATION TRENDS ARE EXPECTED TO
CONTINUE TO SUPPORT APARTMENT DEMAND IN 2019
1 24 TO 31 YEAR OLDS REPRESENT 2 AGE AT FIRST MARRIAGE AND FIRST BIRTH
THE EIGHT MOST POPULOUS AGES IN THE U.S. EACH UP ≈ 2 YEARS IN THE LAST DECADE
U.S. POPULATION BY AGE | 20 – 34 YEAR OLDS MEDIAN AGE AT FIRST MARRIAGE
AVERAGE AGE OF MOTHER AT FIRST BIRTH
15 30
14.3
14 26
14.0
MILLIONS
AGE
13.5
13.4
13 22
13.0
12 18
20 - 22 23 - 25 26 - 28 29 - 31 32 - 34 1970 1978 1986 1994 2002 2010 2018
AGE AS OF DECEMBER 2019
MEDIAN AGE AT FIRST MARRIAGE
AVERAGE AGE OF MOTHER AT FIRST BIRTH
Source: U.S. Census Bureau, Centers for Disease Control and Prevention.
20Business Fundamentals
BUSINESS SECTOR IS IN GOOD SHAPE BUT CONFIDENCE
MAY BE STARTING TO WANE; DEBT LEVELS ARE ON THE RISE
1 CORPORATE PROFITS ON PACE TO INCREASE 15+% IN 2018 2 BUSINESS INVESTMENT REMAINED HEALTHY
BUT TAILWINDS FROM THE TAX CUTS WILL SOON FADE THROUGH THE THIRD QUARTER OF 2018
U.S. CORPORATE PROFIT GROWTH AFTER TAX U.S. PRIVATE FIXED INVESTMENT GROWTH
30% 20%
SEASONALLY ADJUSTED
SEASONALLY ADJUSTED
ANNUALIZED RATE
ANNUALIZED RATE
15% 10%
- -
(15%) (10%)
2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018
NON-RESIDENTIAL EQUIPMENT INTELLECTUAL PROPERTY PRODUCTS
3 THE TRADE WAR AND GLOBAL STOCK MARKET ANXIETY 4 NON-FINANCIAL CORPORATE DEBT BURDENS
ARE BEGINNING TO WEIGH ON BUSINESS CONFIDENCE GROWING MORE QUICKLY THAN GDP
SURVEY OF BUSINESS CONFIDENCE U.S. NON-FINANCIAL CORPORATE DEBT & U.S. NOMINAL GDP
48 170
INDEXED TO 100 IN 2011
SEASONALLY ADJUSTED
DIFFUSION INDEX
36 150
24 130
12 110
- 90
2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 2018
GLOBAL U.S. U.S. NON-FINANCIAL CORPORATE BUSINESS DEBT U.S. NOMINAL GDP
Source: Federal Reserve Bank of St. Louis, U.S. Bureau of Economic Analysis, Moody’s Analytics, U.S. Board of Governors of the Federal Reserve System.
21Multifamily Production
MULTIFAMILY STARTS ARE FLAT AND REMAIN ELEVATED NATIONALLY
BUT ARE TRENDING DOWNWARD IN AVB MARKETS
1 MULTIFAMILY STARTS 2 …BUT DECLINED IN OUR MARKETS
RELATIVELY STABLE NATIONALLY… OVER THE COURSE OF 2018
U.S. MULTIFAMILY STARTS AVB MARKETS MULTIFAMILY STARTS
600 300
SEASONALLY ADJUSTED ANNUALIZED RATE
SEASONALLY ADJUSTED ANNUALIZED RATE
400 200
THOUSANDS
THOUSANDS
200 100
- -
2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018
Source: U.S. Census Bureau.
AVB Markets excludes expansion markets (Southeast Florida and Denver).
22Construction Market
COST PRESSURES AND INVESTOR SENTIMENT SHOULD HELP
TO RESTRAIN MULTIFAMILY START ACTIVITY OVER THE NEXT FEW YEARS
1 CONSTRUCTION COSTS CONTINUE TO INCREASE… 2 …AND LOAN OFFICERS ARE STILL TIGHTENING
LENDING STANDARDS
9% 50%
YEAR-OVER-YEAR CHANGE
6% 25%
3% -
- (25%)
2011 2012 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
NET % OF DOMESTIC SENIOR LOAN OFFICERS TIGHTENING
TURNER CONSTRUCTION COST INDEX
STANDARDS FOR MULTIFAMILY REAL ESTATE LOANS
Source: Turner Construction Company, The Federal Reserve Board.
23AVB Market Outlook
JOB GROWTH IS EXPECTED TO SLOW IN 2019,
BUT THE TIGHT LABOR MARKET IS EXPECTED TO BOOST WAGES
TOTAL PERSONAL INCOME GROWTH
ACTUAL 2018 & PROJECTED 2019
8%
4%
-
2018
U.S. 2019 ’18 ’19
AVB MARKETS ’18 ’19
NEW ENGLAND ’18BY/NJ
METRO ’19 ’18 ’19 ’18
’18 ’19 PACIFIC NORTHWESTNORTHERN
MID-ATLANTIC ’19 SOUTHERN’18
CALIFORNIA ’19
CALIFORNIA
U.S. AVB NEW METRO MID- PACIFIC NORTHERN SOUTHERN
MARKETS ENGLAND NY/NJ ATLANTIC NORTHWEST CALIFORNIA CALIFORNIA
JOB GROWTH WAGE GROWTH
Source: National Association of Business Economics, Moody’s Analytics, AVB Market Research Group.
AVB markets excludes expansion markets (Southeast Florida and Denver).
24AVB Market Outlook
DELIVERIES PROJECTED TO INCREASE MODESTLY IN AVB MARKETS,
MOST NOTABLY IN NORTHERN CAL
NEW APARTMENT COMPLETIONS
ACTUAL 2018 & PROJECTED 2019
AS A % OF EXISTING MARKET RATE APARTMENT INVENTORY
6%
3%
-
AVB MARKETS NEW ENGLAND METRO NY/NJ MID-ATLANTIC PACIFIC NORTHERN SOUTHERN
NORTHWEST CALIFORNIA CALIFORNIA
2018 2019 PROJECTION
Source: AVB Market Research Group.
AVB markets excludes expansion markets (Southeast Florida and Denver).
25AVB Portfolio
2019 SAME-STORE REVENUE GROWTH EXPECTED TO BE ≈ 3%;
IMPROVEMENT ANTICIPATED IN ALL REGIONS EXCEPT SOUTHERN CAL
PROJECTED 2019 FULL YEAR AVB SAME-STORE RENTAL REVENUE GROWTH
6%
HIGH-END
3.5%
3%
LOW-END
2.5%
-
AVALONBAY NEW ENGLAND METRO NY/NJ MID-ATLANTIC PACIFIC NORTHERN SOUTHERN
NORTHWEST CALIFORNIA CALIFORNIA
2019 PROJECTED 2018 ACTUAL
Source: Company reports.
26AVB Development
AVB DEVELOPMENT STARTS EXPECTED TO REMAIN IN THE
$800M TO $1B RANGE, DOWN 40% FROM THE 2013 – 2016 PERIOD
AVB DEVELOPMENT STARTS
AVERAGE
2
START VOLUME ≈ $ 1.4B
AVERAGE
START VOLUME ≈ $ 825M
$ BILLIONS
1
-
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
PROJECTED
Source: Company reports.
Presented at share.
15 West 61st Street included in 2016.
27AVB Development
AGGRESSIVELY MANAGING EXPOSURE TO LAND INVENTORY
LATE IN THE CYCLE…
LAND HELD FOR DEVELOPMENT
AS OF YEAR-END
600 3%
400 2%
$ MILLIONS
200 1%
- -
2010 2011 2012 2013 2014 2015 2016 2017 2018
LAND HELD FOR DEVELOPMENT AT YEAR-END % OF TOTAL ENTERPRISE VALUE (RIGHT AXIS)
Source: Company reports.
See Appendix for defined terms.
28AVB Development
…AND DEVELOPMENT RIGHTS PIPELINE OFFERS PLENTY OF FLEXIBILITY
DEVELOPMENT RIGHTS PIPELINE
AS OF YEAR-END 2018
BY TYPE
ASSET
DENSIFICATION,
$ 0.9B
CONVENTIONAL,
$ 2.2B
PUBLIC-PRIVATE
PARTNERSHIP,
$ 1.0B
Source: Company reports.
See Appendix for defined terms.
29AVB Capital Management
DEVELOPMENT UNDERWAY IS ≈ 75% MATCH-FUNDED
DEVELOPMENT ACTIVITY UNDERWAY VERSUS AVAILABLE CAPITAL SOURCES
AS OF YEAR-END 2018
4
REMAINING TO FUND,
$ 0.8B
$ BILLIONS
Q4 2018 CASH FROM OPERATIONS AVAILABLE CASH & CASH
2 EQUIVALENTS,
FOR INVESTMENT, ANNUALIZED, $ 0.4B
$ 0.1B
DEVELOPMENT
ACTIVITY, $ 3.0B
SPENT-TO-DATE, $ 1.8B
-
PROJECTED TOTAL CAPITAL COST SOURCES
Source: Company reports.
See Appendix for defined terms and reconciliations.
Includes projected Total Capital Cost and spent-to-date for 15 West 61st Street.
30AVB Capital Management
WELL POSITIONED BALANCE SHEET
MULTIFAMILY
BALANCE SHEET METRICS AVB SECTOR
WTD. AVG.
LEVERAGE 23% 26%
NET DEBT-TO-CORE EBITDAre 4.6x 5.3x
UNENCUMBERED NOI 91% 83%
WTD. AVG. COST OF FIXED RATE DEBT 3.7% 4.1%
YEARS TO MATURITY OF TOTAL DEBT OUTSTANDING 9.7 6.5
PERCENTAGE OF TOTAL DEBT MATURITIES THROUGH YEAR-END 2021 17% 34%
Source: Company reports, S&P Global.
See Appendix for defined terms and reconciliations.
Multifamily Sector Weighted Average includes AIV, CPT, ESS, EQR, MAA, and UDR. Data for AVB, CPT, ESS, EQR, MAA as of December 31, 2018; data for AIV and UDR as of September 30, 2018.
AIV does not disclose Unencumbered NOI, or an equivalent measure, and is therefore excluded from the Multifamily Sector Weighted Average Unencumbered NOI figure.
31AVB Capital Management
MANAGEABLE DEBT MATURITY SCHEDULE
DEBT MATURITIES & AMORTIZATION
AS OF YEAR-END 2018
1.0 4%
$ BILLIONS
0.5 2%
- -
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
MATURITIES & AMORTIZATION % OF TOTAL ENTERPRISE VALUE (RIGHT AXIS)
Source: Company reports.
See Appendix for defined terms.
32Summary
KEY TAKEAWAYS
2018 WAS A BETTER-THAN-EXPECTED YEAR FOR AVB
→ DELIVERED FULL YEAR CORE FFO PER SHARE OF $9.00, WHICH WAS $0.07 PER SHARE > INITIAL OUTLOOK(1)
→ YEAR-OVER-YEAR LIKE-TERM EFFECTIVE RENT CHANGE ACCELERATED IN THE SECOND HALF OF THE YEAR
→ DECREASED PORTFOLIO ALLOCATION TO THE NORTHEAST; INCREASED PORTFOLIO ALLOCATION TO SE FLORIDA AND DENVER
→ REDUCED NET DEBT-TO-CORE EBITDARE TO 4.6X (A CYCLE LOW) AND INCREASED UNENCUMBERED NOI TO 91%
IN 2019, WE EXPECT APARTMENT MARKET FUNDAMENTALS TO REMAIN HEALTHY
→ PROJECTING FULL YEAR SAME-STORE REVENUE GROWTH OF ≈ 3%, 50 BASIS POINTS > 2018
→ EXPECTING A SMALLER CONTRIBUTION FROM NEW DEVELOPMENT DUE TO A LOWER VOLUME OF COMPLETIONS IN 2018 AND ’19
→ CONTINUING TO MANAGE LIQUIDITY AND THE BALANCE SHEET TO PURSUE GROWTH IN A RISK-MEASURED WAY
Source: Company reports.
See Appendix for defined terms and reconciliations.
(1) As provided on January 31, 2018.
33FORWARD-LOOKING STATEMENTS
This presentation dated February 4, 2019 is provided in connection with AvalonBay’s fourth quarter 2018 earnings conference call on February 5, 2019.
This presentation is intended to accompany AvalonBay’s earnings release dated February 4, 2019, and should be read in conjunction with the earnings
release. AvalonBay does not intend to update any of these documents, which speak only as of their respective dates.
The earnings release is available on AvalonBay’s website at www.avalonbay.com/earnings
For definitions, additional information and reconciliations of non-GAAP financial information and certain defined terms included in this presentation, see
pages 35 to 44 in this presentation in addition to Attachment 15 to the earnings release.
This presentation dated February 4, 2019 contains forward-looking statements, which are indicated by the use of words such as “expects,” “projects,”
“forecast,” “outlook,” “estimate” and other words that do not relate to historical matters. Actual results may differ materially. For information concerning
risks and other factors that could cause such differences, see “Forward Looking Statements” in AvalonBay’s earnings release that accompanies this
presentation. The Company does not undertake a duty to update the projections and expectations stated in this presentation, which speak only as of the
date of this presentation unless otherwise referenced.
34ADDITIONAL DEFINITIONS AND RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES AND OTHER TERMS
Development Communities are communities that are under construction and for which a certificate or certificates of occupancy for the entire community
has not been received. These communities may be partially complete and operating.
Development Rights are development opportunities in the early phase of the development process for which the Company either has an option to acquire
land or enter into a leasehold interest, for which the Company is the buyer under a long-term conditional contract to purchase land, where the Company
controls the land through a ground lease or owns land to develop a new community, or where the Company is the designated developer in a public-private
partnership. The Company capitalizes related pre-development costs incurred in pursuit of new developments for which the Company currently believes
future development is probable.
→ Asset Densification Development Rights are when the Company develops additional apartment homes at existing stabilized operating
communities the Company owns, and will be constructed on land currently associated with those operating communities.
→ Conventional Development Rights are when the Company either has an option to acquire the land or enter into a leasehold interest, for which the
Company is the buyer under a long-term conditional contract to purchase land, where the Company controls the land through a ground lease or
owns the land to develop a new community.
→ Public-Private Partnership Development Rights are when the Company either has an option to acquire the land or enter into a leasehold interest,
for which the Company is the buyer under a long-term conditional contract to purchase the land, where the Company is the designated developer
in a public-private partnership with a local government entity.
35ADDITIONAL DEFINITIONS AND RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES AND OTHER TERMS
EBITDA, EBITDAre and Core EBITDAre are considered by management to be Q4 Q4
supplemental measures of our financial performance. EBITDA is defined by $ IN THOUSANDS 2018 2017
the Company as net income or loss attributable to the Company before Net income $ 385,636 $ 237,486
interest income and expense, income taxes, depreciation and amortization. Interest expense, net, inclusive of loss on
EBITDAre is calculated by the Company in accordance with the definition extinguishment of debt, net 69,955 53,833
adopted by the Board of Governors of the National Association of Real Estate Income tax (refund) expense (247) 39
Investment Trusts (“NAREIT”), as EBITDA plus or minus losses and gains on Depreciation expense 158,914 157,100
the disposition of depreciated property, plus impairment write-downs of EBITDA $ 614,258 $ 448,458
depreciated property, with adjustments to reflect the Company's share of
EBITDAre of unconsolidated entities. Core EBITDAre is the Company’s Gain on sale of communities (242,532) (92,845)
EBITDAre as adjusted for noncore items outlined in the table below. By Joint venture EBITDAre adjustments 1,413 2,925
further adjusting for items that are not considered part of the Company’s
EBITDAre $ 373,139 $ 358,538
core business operations, Core EBITDAre can help one compare the core
operating and financial performance of the Company between periods. A
(Gain) loss on other real estate transactions (9) 11,153
reconciliation of EBITDA, EBITDAre and Core EBITDAre to net income for Q4
Joint venture promote - -
2018 and Q4 2017 is presented to the right:
Casualty and impairment loss (gain) 826 (5,438)
Lost NOI from casualty losses covered by business
- 1,662
interruption insurance
Business interruption insurance proceeds (26) -
Advocacy contributions 2,040 -
Severance related costs 884 (66)
Development pursuit write-offs and expensed
transaction costs, net 566 232
Asset management fee intangible write-off 538 -
Legal settlements 146 589
Core EBITDAre $ 378,104 $ 366,670
36ADDITIONAL DEFINITIONS AND RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES AND OTHER TERMS
Established Communities (or same-store communities) are consolidated communities in the markets where the Company has a significant presence (New
England, New York/New Jersey, Mid-Atlantic, Pacific Northwest, and Northern and Southern California) and 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 2018 operating results, Established Communities are consolidated communities that have Stabilized
Operations as of January 1, 2017, are not conducting or planning to conduct substantial redevelopment activities and are not held for sale or planned for
disposition within the current year.
37ADDITIONAL DEFINITIONS AND RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES AND OTHER TERMS
Q4 Q4 FULL YEAR FULL YEAR
FFO and Core FFO are considered by management to be supplemental $ IN THOUSANDS EXCEPT PER SHARE DATA 2018 2017 2018 2017
measures of our operating and financial performance. FFO is calculated Net income attributable to common stockholders $ 385,734 $ 237,573 $ 974,525 $ 876,921
by the Company in accordance with the definition adopted by NAREIT. Depreciation - real estate assets, including joint
158,838 156,413 629,814 582,907
FFO is calculated by the Company as Net income or loss attributable to venture adjustments
Distributions to noncontrolling interests 11 10 44 42
common stockholders computed in accordance with GAAP, adjusted for (Gain) loss on sale of unconsolidated entities
gains or losses on sales of previously depreciated operating communities, (2,019) 57 (10,655) (40,053)
holding previously depreciated real estate
cumulative effect of a change in accounting principle, impairment write- Gain on sale of previously depreciated real estate (242,532) (92,845) (374,976) (252,599)
downs of depreciable real estate assets, write-downs of investments in FFO attributable to common stockholders $ 300,032 $ 301,208 $ 1,218,752 $ 1,167,218
affiliates which are driven by a decrease in the value of depreciable real Adjusting items:
estate assets held by the affiliate and depreciation of real estate assets, Joint venture losses 538 139 852 950
including adjustments for unconsolidated partnerships and joint Joint venture promote - - (925) (26,742)
Impairment loss on real estate 826 - 826 9,350
ventures. By excluding gains or losses related to dispositions of previously Casualty (gain) loss, net on real estate - (5,438) (612) (3,100)
depreciated operating communities and excluding real estate Business interruption insurance proceeds (26) - (26) (3,495)
depreciation (which can vary among owners of identical assets in similar Lost NOI from casualty losses covered by business
- 1,662 1,730 7,904
interruption insurance
condition based on historical cost accounting and useful life estimates),
Loss on extinguishment of consolidated debt 14,775 1,310 17,492 25,472
FFO can help one compare the operating and financial performance of a Advocacy contributions 2,040 - 3,489 -
company’s real estate between periods or as compared to different Hedge ineffectiveness - - - (753)
companies. Core FFO is the Company's FFO as adjusted for non-core Severance related costs 884 (66) 1,466 87
Development pursuit write-offs and expensed
items outlined in the table below. By further adjusting for items that are transaction costs, net
566 232 1,324 1,406
not considered part of our core business operations, Core FFO can help (Gain) loss on other real estate transactions (9) 11,153 (344) 10,907
one compare the core operating and financial performance of the Acquisition costs - 92 - 92
Legal settlements 146 589 513 680
Company between periods. A reconciliation of Net income attributable to Income taxes (251) - (251) -
common stockholders to FFO and to Core FFO for Q4 2018, Q4 2017 and Core FFO attributable to common stockholders $ 319,521 $ 310,881 $ 1,244,286 $ 1,189,976
full year 2018 and full year 2017 is presented to the right:
Average shares outstanding - diluted 138,463,943 138,245,981 138,289,241 138,066,686
Earnings per share - diluted $ 2.79 $ 1.72 $ 7.05 $ 6.35
FFO per common share - diluted $ 2.17 $ 2.18 $ 8.81 $ 8.45
Core FFO per common share - diluted $ 2.31 $ 2.25 $ 9.00 $ 8.62
38ADDITIONAL DEFINITIONS AND RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES AND OTHER TERMS
Interest Coverage is calculated by the Company as Core EBITDAre, divided by Leverage is the outstanding principal balance of the Company’s debt as
interest expense, net. Interest Coverage is presented by the Company a percentage of Total Enterprise Value. Management believes that
because it provides rating agencies and investors an additional means of Leverage can be one useful measure of a real estate operating
comparing our ability to service debt obligations to that of other companies. company’s long-term liquidity and balance sheet strength, because it
A calculation of Interest Coverage for Q4 2018 and Q4 2017 is presented shows an approximate relationship between a company’s total debt and
below (a reconciliation of Core EBITDAre to net income for Q4 2018 and Q4 the current total market value of its assets based on the current price at
2017 is located on page 36): which the Company’s common stock trades. Changes in Leverage as a
result of changes in debt levels also can influence changes in per share
results. A calculation of Leverage as of December 31, 2018 is presented
Q4 Q4 below:
$ IN THOUSANDS 2018 2017
AS OF
Core EBITDAre $ 378,104 $ 366,670 $ IN THOUSANDS 12/31/2018
Common stock $ 24,107,391
Interest expense, net $ 55,180 $ 52,523
Operating partnership units 1,305
Total debt 7,102,354
Interest Coverage 6.9x 7.0x Total Enterprise Value $ 31,211,051
Leverage 23%
39ADDITIONAL DEFINITIONS AND RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES AND OTHER TERMS
Like-Term Effective Rent Change represents the percentage change in Net Debt-to-Core EBITDAre is calculated by the Company as total debt
effective rent between two leases of the same lease term category for the that is consolidated for financial reporting purposes, less consolidated
same apartment. The Company defines effective rent as the contractual rent cash and cash in escrow, divided by annualized fourth quarter 2018
for an apartment less amortized concessions and discounts. Average Like- Core EBITDAre. A calculation of Net Debt-to-Core EBITDAre for Q4 2018
Term Effective Rent Change is weighted based on the number of leases and Q4 2017 is presented below (a reconciliation of Core EBITDAre to
meeting the criteria for new move-in and renewal like-term effective rent net income for Q4 2018 and Q4 2017 is located on page 36 of this
change. New move-in like-term effective rent change is the change in presentation):
effective rent between the contractual rent for a resident who moves out of
Q4 Q4
an apartment, and the contractual rent for a resident who moves into the
$ IN THOUSANDS 2018 2017
same apartment with the same lease term category. Renewal like-term
Total debt principal $ 7,102,355 $ 7,404,313
effective rent change is the change in effective rent between two
Cash and cash in escrow (217,864) (201,906)
consecutive leases of the same lease term category for the same resident Net debt $ 6,884,491 $ 7,202,407
occupying the same apartment.
Core EBITDAre $ 378,104 $ 366,670
Core EBITDAre, annualized $ 1,512,416 $ 1,466,680
Net Debt-to-Core EBITDAre 4.6x 4.9x
40ADDITIONAL DEFINITIONS AND RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES AND OTHER TERMS
Projected FFO and Projected Core FFO, as provided within this presentation 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 full year 2019 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 is as follows:
LOW HIGH
RANGE RANGE
Projected EPS (diluted) - Full Year 2019 $ 5.18 $ 5.68
Depreciation (real estate related) 4.61 4.81
Gain on sale of communities (0.79) (0.99)
Projected FFO per share (diluted) - Full Year 2019 $ 9.00 $ 9.50
Joint venture promote and other income,
0.01 0.01
development pursuit and other write-offs
Adjustments related to condo activities at 15 West
0.04 0.04
61st Street
Projected Core FFO per share (diluted) - Full Year 2019 $ 9.05 $ 9.55
41ADDITIONAL DEFINITIONS AND RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES AND OTHER TERMS
Projected NOI, as used within this presentation for certain Development represents management’s estimate, as of the date of this presentation, of
projected stabilized rental revenue minus projected stabilized operating expenses. Projected NOI is calculated based on the first twelve months of
Stabilized Operations following the completion of construction. 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 do not include property
management fee expense. Projected gross potential 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.
Projected Stabilized Yield (also expressed as “weighted average initial stabilized yield” or words of similar meaning) means Projected NOI as a percentage
of Total Capital Cost (weighting based on Total Capital Cost).
42ADDITIONAL DEFINITIONS AND RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES AND OTHER TERMS
Q4 2018 cash from operations available for investment, annualized is the Company’s fourth quarter 2018 Core FFO, less (i) fourth quarter 2018 dividends
declared – common and (ii) fourth quarter 2018 Asset Preservation costs, annualized. Q4 2018 cash from operations available for investment, annualized
does not represent the Company’s Net cash provided by operating activities as presented in the Company’s consolidated financial statements. A
reconciliation of Q4 2018 cash from operations available for investment, annualized to Core FFO is as follows:
Q4
$ IN THOUSANDS 2018
Core FFO attributable to common stockholders $ 319,521
Dividends declared - common (203,750)
Established and Other Stabilized Asset
(20,145)
Preservation Capex
Q4 2018 cash from operations available for
$ 95,626
investment
Q4 2018 cash from operations available for
$ 382,504
investment, annualized
Total Capital Cost includes all capitalized costs projected to be or actually incurred to develop the respective Development Community, or Development
Right, including land acquisition costs, construction costs, real estate taxes, capitalized interest and loan fees, permits, professional fees, allocated
development overhead and other regulatory fees, offset by proceeds from the sale of any associated land or improvements, all as determined in
accordance with GAAP. With respect to communities where development was completed in a prior 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.
43ADDITIONAL DEFINITIONS AND RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES AND OTHER TERMS
FULL YEAR FULL YEAR
$ IN THOUSANDS 2018 2017
Total Enterprise Value represents the aggregate of the market value of the
Net income $ 974,175 $ 876,660
Company’s common stock, the market value of the Company’s operating Indirect operating expenses, net of corporate
partnership units outstanding (based on the market value of the 76,522 65,398
income
Company’s common stock) and the outstanding principal balance of the Investments and investment management
7,709 5,936
Company’s debt. A calculation of Total Enterprise Value as of December 31, expense
Expensed transaction, development and other
2018 is presented below: 4,309 2,736
pursuit costs, net of recoveries
Interest expense, net 220,974 199,661
AS OF Loss on extinguishment of debt, net 17,492 25,472
$ IN THOUSANDS 12/31/2018 General and administrative expense 56,205 50,814
Common stock $ 24,107,391 Joint venture income (15,270) (70,744)
Depreciation expense 631,196 584,150
Operating partnership units 1,305
Casualty and impairment loss (gain), net 215 6,250
Total debt 7,102,354
Gain on sale of communities (374,976) (252,599)
(Gain) loss on other real estate transactions (345) 10,907
Total Enterprise Value $ 31,211,051 NOI from real estate assets sold or held for sale (58,620) (14,573)
NOI $ 1,539,586 $ 1,490,068
Total Established $ 1,165,509 $ 1,112,472
Other Stabilized 178,172 196,733
Unencumbered NOI as calculated by the Company represents NOI Redevelopment 143,471 118,062
Development 52,434 62,801
generated by real estate assets unencumbered by outstanding secured NOI $ 1,539,586 $ 1,490,068
debt as a percentage of total NOI generated by real estate assets. The
NOI for Established Communities $ 1,165,509 $ 1,112,472
Company believes that current and prospective unsecured creditors of the
NOI for Other Stabilized Communities 178,172 196,733
Company view Unencumbered NOI as one indication of the borrowing NOI for Redevelopment Communities 143,471 118,062
capacity of the Company. Therefore, when reviewed together with the NOI for Development Communities 52,434 62,801
Company’s Interest Coverage, EBITDA and cash flow from operations, the NOI from real estate assets sold or held for sale 58,620 14,573
Company believes that investors and creditors view Unencumbered NOI as Total NOI generated by real estate assets $ 1,598,206 $ 1,504,641
NOI on encumbered assets 142,271 168,005
a useful supplemental measure for determining the financial flexibility of
NOI on unencumbered assets $ 1,455,935 $ 1,336,636
an entity. A calculation of Unencumbered NOI for 2018 and 2017 is
Unencumbered NOI 91% 89%
presented to the right:
44You can also read
