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| Avalonbay Communities, Inc. Announces First Quarter 2000 Operating Results |
ALEXANDRIA, Va., April 25 /PRNewswire/ -- AvalonBay Communities, Inc. (NYSE: AVB) reported today that Funds from Operations ("FFO") for the quarter ended March 31, 2000 was $58,614,000 or $.87 per share (diluted) compared to $48,896,000 or $.75 per share (diluted) as previously reported for the comparable period of 1999, a per share increase of approximately 16.0%. The Company will hold a conference call on April 26, 2000 at 10:00 AM Eastern Time (EST) to review these results. The domestic number to call to participate is 1-800-952-4707. The international number to call to participate is 1-703-871-3077. The domestic number to hear a replay of this call is 1-888-266-2086, and the international number to hear a replay of this call is 1-703-925-2435 -- Access Code: 3715370. Operating Results for the Quarter Ended March 31, 2000 Compared to the Prior Year Period Total revenue increased by $16,142,000, or 13.6% to $135,088,000, and earnings before interest, income taxes, depreciation and amortization ("EBITDA") increased by $14,272,000 or 19.4% to $87,728,000. The overall increase in revenue and EBITDA is primarily attributable to newly developed and redeveloped communities as well as operating improvements related to Established Communities. Net income available to common stockholders was $37,227,000 or $.55 per share (diluted) compared to $4,955,000 or $.08 per share (diluted) for the prior year period. Established Communities Operating Results 1Q00 Compared to 1Q99 Rental Operating Revenue Expenses NOI ---------------------------------------------------- No. California 6.8% (1.3%) 9.6% So. California 7.9% 2.0% 12.8% Northeast 5.9% 1.1% 7.9% Mid-Atlantic 6.2% 1.8% 7.8% Midwest 4.7% 2.9% 5.8% Pacific Northwest 37.9% 10.9% 52.4% For Established Communities, rental revenue increased 6.6%, comprised of rental rate growth of 5.2% and an increase in economic occupancy of 1.4%. Total revenue increased $4,678,000 to $75,277,000. Operating expenses increased $112,000, or 0.6%. Accordingly, net operating income increased by $4,564,000 or 9.1%. Development and Redevelopment Activity During the first quarter, three new development communities were completed, Avalon Corners (Stamford, CT), Avalon Fox Mill (Herndon, VA) and Avalon Court North (Melville, NY). On an aggregate basis, these communities contain 700 apartment homes for a total investment of approximately $92.4 million. The Company expects the first full quarter of stabilized occupancy for these communities to be the second quarter of 2000. No assurance can be given that the expected dates of stabilization will be achieved. In addition, the redevelopment of two new communities, Avalon at Cortez Hill (San Diego, CA) and Lakeside (Burbank, CA) commenced during the first quarter of 2000. These two communities contain an aggregate of 1,042 apartment homes and have a projected total investment of approximately $109.1 million. Disposition Activity During the first quarter, the Company sold one existing community. The net proceeds from the sale of this community, which contains a total of 360 apartment homes, were approximately $29.3 million. The proceeds from the sale will be re-deployed to communities currently under construction or reconstruction. About AvalonBay Communities, Inc. AvalonBay, named the NAHB Development Company of the year for 1998/1999 and the Property Management Company of the Year for 1996/1997, currently owns or holds an ownership interest in 133 apartment communities containing 38,821 apartment homes in twelve states and the District of Columbia, of which nine communities are under construction and six communities are under reconstruction. AvalonBay is an equity REIT in the business of developing, redeveloping, acquiring and managing multifamily apartment communities in high barrier-to-entry markets of the United States. More information on AvalonBay may be found on AvalonBay's Web Site at http://www.avalonbay.com . For additional information, please contact Richard L. Michaux, President and Chief Executive Officer at 703-317-4602 or Thomas J. Sargeant, Executive Vice President and Chief Financial Officer at 703-317-4635. This release 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. The forward-looking statements contained in this release are statements that are subject to certain risks and uncertainties, including, but not limited to, possible changes in demand for apartment homes, the effects of economic conditions, the impact of competition and competitive pricing, changes in construction costs, the results of financing efforts, potential acquisitions under agreement, the effects of the Company's accounting policies and other matters detailed 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, 1999 under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Forward-Looking Statements". Management generally considers Funds from Operations ("FFO") to be an appropriate measure of the operating performance of the Company because it provides investors an understanding of the ability of the Company to incur and service debt and to make capital expenditures. FFO is determined based on a definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts which may differ from the methodology for computing FFO used by other REITs, and, accordingly, the Company's calculation of FFO may not be comparable to such other REITs. Revised Definition of FFO In the first quarter of 1999, the Company's previously reported FFO excluded a nonrecurring restructuring charge of $16,524 in conformance with the NAREIT definition of FFO calculations then in place ("Former Definition"). The Company has adopted NAREIT's new FFO calculation, pursuant to NAREIT's White Paper dated October 1999, which modifies the FFO calculation to include certain nonrecurring charges ("Current Definition"). Both FFO calculations are presented on the attached financial statements. Restating 1999 results using the Current Definition, the comparison of FFO per share would be $0.87 for first quarter 2000 versus $0.50 per share for first quarter 1999, a per share increase of 74.0%. The Company believes the comparison of FFO using the Former Definition represents the best guide to investors of comparable operations and growth between years. Earnings Release Attachments The Company produces Earnings Release Attachments ("the Attachments") that provide detailed information regarding operating, development, redevelopment, disposition and acquisition activity. These Attachments will not be included in the fax distribution, but the Attachments are available via the Company's web site and through e-mail distribution. To access the Attachments through the Company's web site at http://www.avalonbay.com, select "Press Releases" under "Investors Corner." If you would like to receive future press releases via e-mail, please register through the Company's web site at http://www.avalonbay.com/website/PressRegistration.nsf. Some items referenced in the earnings release may require the Adobe Acrobat 4.0 Reader. If you do not have the Adobe Acrobat 4.0 Reader, you may download it now at the following website address: http://www.adobe.com/products/acrobat/readstep.html. Copyright 2000 AvalonBay Communities, Inc. All Rights Reserved AVALONBAY COMMUNITIES, INC Company Profile at March 31, 2000 (Dollars in thousands except per share data) Selected Operating Information: Q1 00 Q1 99 % Change ----------- ----------- -------- FFO - Current Definition(1) $ 58,614 $ 32,372 81.1% Per common share - basic $ 0.88 $ 0.50 76.0% Per common share - diluted $ 0.87 $ 0.50 74.0% FFO - Former Definition(2) $ 58,614 $ 48,896 19.9% Per common share - basic $ 0.88 $ 0.75 17.3% Per common share - diluted $ 0.87 $ 0.75 16.0% Net income available to common stockholders $ 37,227 $ 4,955 651.3% Per common share - basic $ 0.56 $ 0.08 600.0% Per common share - diluted $ 0.55 $ 0.08 587.5% Dividends declared - common $ 36,942 $ 32,695 13.0% Per common share $ 0.56 $ 0.51 9.8% Total EBITDA $ 87,728 $ 73,456 19.4% Average shares outstanding - basic 66,688,478 64,863,179 Average shares outstanding - diluted 67,177,488 65,213,620 (1) FFO is calculated based on NAREIT's October 1999 White Paper on FFO. Non-recurring charges of $16,524 were previously excluded. (2) As previously reported for the quarter ended March 31, 1999.SOURCE AvalonBay Communities, Inc.
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