FAQs
REIT OVERVIEW
What is a REIT?
Real estate investment trusts (REIT's) engage in a wide range of real estate activities and related services. To qualify for REIT status, a company's assets must be primarily long-term real estate and it's income must be primarily derived from rents on real estate. A REIT is generally not taxed at the corporate level on net income to the extent net income is distributed to the REIT's stockholders. REITs currently must pay out at least 90% of their net income in dividends to shareholders.
What are the advantages of investing in REITs?
A REIT provides an indirect interest in the income, cash flow and value of real estate. Many REIT investors are attracted to those REIT's that provide:
- Current, stable dividend income;
- Dividend growth that has consistently exceeded the rate of consumer price inflation;
- High dividend yields;
- Liquidity: shares of publicly traded REITs are readily converted into cash because they are traded on the major stock exchanges;
- Management by skilled, experienced real estate professionals;
- Portfolio diversification to minimize risk; and
- Monitoring on a regular basis by independent directors of the REIT, independent analysts, independent auditors, and the business and financial media. This scrutiny provides the investor a measure of protection and more than one barometer of the REIT's financial condition.
Why should I invest in AvalonBay?
AvalonBay Communities has achieved sector-leading performance during its tenure as as public company. This strong financial performance is driven by the high barrier-to-entry markets in which we operate, our premium portfolio and our experienced, proven management team.
These factors, combined with our sound financial practices, have contributed to Funds from Operations (FFO) per share growth that is almost 370 bps greater than the multifamily average over the last ten years. In addition, our compound annual dividend growth rate of 6.1% during this same period is the second highest within the multifamily sector. Strong FFO and dividend growth have contributed to a Total Shareholder Return Compounded Annual Growth Rate (CAGR) of 19.6% from 4th Quarter of 1996 to the 4th Quarter of 2006 compared to 16.4% for the RMS, 7.5% for the S&P 500, and 7.0% for NASDAQ.
PORTFOLIO OVERVIEW
How large is AvalonBay's portfolio?
At September 30, 2007 AvalonBay owned or held interest in 182 apartment communities containing 51,898 apartment homes in ten states and the District of Columbia, of which 19 communities were under construction and nine communities were under reconstruction. In addition, we held future development rights for 52 communities.
What markets does AvalonBay operate in?
AvalonBay operates in high barrier-to-entry markets of the United States. These markets are in the Northeast, Mid-Atlantic, Midwest, Pacific Northwest, Northern California and Southern California regions of the country.
VALUE CREATION
How does AvalonBay create value for stockholders?
AvalonBay creates value through new development, redevelopment and acquisitions as well as through Established Communities' rental revenue growth and high occupancy. AvalonBay harvests this value through selective dispositions and ultimately returns that value to its shareholders.
STOCKHOLDER MATTERS
How do I contact the Investor Relations Department?
You may contact the Investor Relations Department via telephone by calling 703-329-6300 or by mail at:
AvalonBay Communities, Inc.
Attn: Investor Relations
2900 Eisenhower Ave., Suite 300
Alexandria, VA 22314
Who is the stock transfer agent, and how can they help me?
AvalonBay's stock transfer agent is The Bank of New York located in New York City. Our transfer agent can help you with your account information, address changes, account consolidation, direct or electronic deposit or registration, dividend information, information on AVB's Dividend Reinvestment and Stock Purchase Plan, registration changes, replacement of lost, stolen or destroyed certificates and stock transfers.
How do I initiate a name change regarding my AVB stock ownership?
In order to change the registration of shares to reflect a new name, a physical transfer of the share certificate(s) is necessary.
Complete a stock power form endorsed as follows: "Lisa Smith, now known as Lisa Jones." You can use the stock power form attached or you may contact The Bank of New York at 1-800-524-4458 to have one mailed to you.
Your signature must be guaranteed with a signature guarantee from a financial institution, such as a commercial bank, trust company, national bank, credit union, brokerage firm, etc., that is participating in a Medallion Program, such as STAMP, SEMP, MSP or other STA approved Medallion Program.
Indicate the following information on the stock power form or include a separate letter of instruction:
- New full name;
- Taxpayer identification number (social security number);
- Complete mailing address;
- Share amount to be issued. Specify the combined total of the shares you wish to transfer. Be sure to include both shares held in certificate form and those held in reinvestment accounts.
Complete and return a substitute W-9 certification form for each transferee (each new account). To obtain a W-9 certification form, contact The Bank of New York at 1-800-524-4458.
If the taxpayer I.D. of the transferee is not certified, the account will be subject to withholding by the I.R.S. at the rate of 31% of all dividend disbursements. Additional forms should be available from your local bank or brokerage firm. Send completed information WITH YOUR CERTIFICATE(S) via Registered Mail insured for 2% of the current market value, or via Certified Mail which is tracked but not insurable, to our address.
How do I transfer shares to a new shareholder?
In order to transfer shares to a new shareholder, a physical transfer of the share certificate(s) is necessary.
Complete a stock power form endorsed as the registered shareholder. You can use the stock power form attached or you may contact The Bank of New York at 1-800-524-4458 to have one mailed to you.
Your signature must be guaranteed with a signature guarantee from a financial institution, such as a commercial bank, trust company, national bank, credit union, brokerage firm, etc., that is participating in a Medallion Program, such as STAMP, SEMP, MSP or other STA approved Medallion Program.
Indicate the following information on the stock power form or include a separate letter of instruction:
- New full name;
- Taxpayer identification number (social security number);
- Complete mailing address;
- Share amount to be issued. Specify the combined total of the shares you wish to transfer. Be sure to include both shares held in certificate form and those held in reinvestment accounts.
Complete and return a substitute W-9 certification form for each transferee (each new account). To obtain a W-9 certification form, contact The Bank of New York at 1-800-524-4458.
If the taxpayer I.D. of the transferee is not certified, the account will be subject to withholding by the I.R.S. at the rate of 31% of all dividend disbursements. Additional forms should be available from your local bank or brokerage firm.
Send completed information WITH YOUR CERTIFICATE(S) via Registered Mail insured for 2% of the current market value, or via Certified Mail which is tracked but not insurable, to our address.
What is the taxable distribution of dividends distributed by AvalonBay?
The taxable distribution of dividends distributed by AvalonBay differs from year-to-year and is classified as taxable ordinary income, return of capital, 20% rate gain and/or unrecaptured section 1250 gain. To view current common and preferred share dividend distributions, visit our press releases.
Does AvalonBay have a Dividend Reinvestment Plan (DRIP)? If so, how can I participate?
AvalonBay offers an active DRIP. To obtain an authorization form call please call The Bank of New York at 1-800-524-4458 or for more information please click here.
How Many AvalonBay Common Shares are outstanding?
At December 31, 2006, there were 74,668,372 common shares and 144,955 OP units outstanding.
What are the terms of AvalonBay's Preferred Stock Series?
The following Series of Preferred Stock are currently outstanding. Details for each of the Series of Preferred Stock are as follows:
Series | Shares Outstanding at March 31, 2004 | Payable Quarterly | Annual Rate | Liquidation Preference | Non-redeemable prior to: |
H | 4,000,000 | Mar., Jun., Sept., Dec. | 8.70% | $25 | October 15, 2008 |
