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AVALONBAY COMMUNITIES, INC.
is an equity REIT in the business of developing, redeveloping,
acquiring and managing multifamily communities primarily in New
England, the New York/New Jersey metro area, the Mid-Atlantic,
the Pacific Northwest, and Northern and Southern California. We
focus on leading metropolitan areas in these regions that we believe
are characterized by growing employment in high wage sectors of
the economy, higher cost of home ownership and a diverse and
vibrant quality of life. We believe these market characteristics
offer the opportunity for superior risk-adjusted returns over the
long-term on apartment community investments relative to other
markets that do not have these characteristics.
AVALONBAY HAS A 24 YEAR HISTORY OF
OUTPERFORMANCE AND STRONG DIVIDEND GROWTH
TOTAL SHAREHOLDER RETURN SINCE IPO
REPRESENTS $100 INVESTED & THE REINVESTMENT OF DIVIDENDS
Source: S&P Global
2,000
1,500
1,000
500
-
400
300
200
100
-
1994 1998 2002 2006 2010 2014 2017
• AVALONBAY • S&P 500
ANNUAL COMMON DIVIDENDS PAID
INDEXED TO 100 IN 1994
Source: S&P Global
24 YEAR CAGR = 5.3%
1994 1998 2002 2006 2010 2014 2017
FINANCIAL HIGHLIGHTS
ANNUALIZED TOTAL SHAREHOLDER RETURN(1)
Source: S&P Global
6.1% 5.4%
9.0% 9.3%
10.8%
7.4%
3 YEAR
5 YEAR
10 YEAR
• AVB • MSCI US REIT INDEX (“RMZ”)
ANNUALIZED CORE FFO PER SHARE GROWTH(2)
Source: S&P Global
8.3% 7.3%
9.7%
7.8%
6.5%
4.5%
3 YEAR
5 YEAR
10 YEAR
• AVALONBAY • MULTIFAMILY SECTOR WEIGHTED AVERAGE
2
2
2017 AT A GLANCE
A COMPANY
RECORD!
$1.9 BILLON
DEVELOPMENT COMPLETIONS
7 COMMUNITIES
LEED ENVIRONMENTAL CERTIFICATION
DENVER
SOUTHEAST
FLORIDA
2
NEW MARKETS ENTERED
3 CONSECUTIVE YEARS!
NO. 1
ONLINE REPUTATION
EMPLOYEES
CHOICE
BEST PLACES TO WORK
Avalon West Hollywood West Hollywood, CA
3
3
AVALONBAY | 2017 Annual Report DEAR SHAREHOLDERS
THE YEAR IN REVIEW
2017 was a productive year for AvalonBay. We completed the
development of 14 new communities containing over 5,000
apartment homes, representing $1.9 billion in total capital
investment – a record for the Company. We project these
new communities will generate a weighted average initial
stabilized yield of 6.1%, which is well above our estimate of
market capitalization rates for existing like-product in our
markets. We sold the final three assets in our second private
discretionary real estate investment vehicle (“Fund II”). Based
on Fund II's performance since its formation in 2008, we
received $27 million of promote income in 2017 (in addition to
the $8 million of promote income received in prior years). We
entered two new markets with the intention of achieving scale
(approximately 5% of total NOI) in each market over the next
decade. During 2017 we acquired the Lodge Denver West in the
Denver metropolitan area and 850 Boca in Southeast Florida.
In addition, we continued to enhance our balance sheet by
reducing near-term debt maturities to less than $200 million
before 2020, extending the weighted average years to maturity
on our outstanding debt to approximately 10 years from 8.5
years at the end of 2016, and increasing our Unencumbered
NOI to 89%, up from 80% at the end of 2016.
Sustainability continues to be a priority for the business, and
we advanced this priority by completing another 32 light
emitting diode (LED) retrofits at existing communities in 2017.
We achieved Leadership in Energy and Environmental Design
(LEED) certifications at seven recently completed communities.
In total, AvalonBay now has 43 third-party environmentally
certified communities with another 27 in pursuit of certification.
In addition, our renewable strategy will result in the installation
of eight solar energy generation systems by the end of 2018.
Further, we again had our energy, water, waste and greenhouse
gas (GHG) emission data independently verified by Lloyd’s
Register Quality Assurance (LRQA). Our continued leadership
in providing sustainable communities and living experiences
for our residents was recognized in 2017. Specifically, the Global
Real Estate Sustainability Benchmark (GRESB) recognized
AvalonBay as an industry leader, awarding us four “Green
Stars” and an “A” rating in ESG public disclosure.
Our relentless focus on fostering a culture that brings out the
best in our associates was reflected in our annual Associate
Perspective Survey, where we ranked among the top 10% of
companies for associate engagement, with 90% of associates
recommending AvalonBay as a great place to work. Glassdoor
rated us as among the top 100 companies to work for in the U.S.,
based on ratings and reviews of employees.
We pride ourselves on creating experiences that customers
value. This focus led to a 600 basis point increase in our Net
Promoter Score (NPS) during 2017, a key customer satisfaction
and loyalty metric. We generated over 11,000 new online
reviews on sites like Yelp and Google at an average star rating
of 4.3 out of 5, and we were ranked #1 for online reputation
among public multifamily REITs by J. Turner Research for a
third consecutive year.
Our capability-led business strategy continues to produce
strong results. Since 2010, Core FFO per share has increased by
117%, as compared to a sector weighted average of 83% during
this period. Moreover, in January, we announced our seventh
consecutive increase to the annual dividend, which has grown
from $3.57 per share in 2010 to $5.88 per share in 2018.
LOOKING AHEAD
We expect the U.S. economy to strengthen in 2018, driven by
healthy business and consumer fundamentals. In our markets,
we expect job growth of 1.0% (down 20 basis points from 2017)
and wage growth of 3.6% (up 60 basis points from 2017).
We believe U.S. demographic trends will continue to support
apartment demand. The prime rental cohort, those between the
ages of 25 and 34, is projected to increase in size in each of the
next seven years. Furthermore, this segment of the population
continues to delay family formation and extend rental tenure;
since the beginning of the decade, the average age at first
marriage and a mother’s average age at first birth have both
increased by more than a year.
In response to the favorable demand outlook, we expect the
volume of new apartment deliveries in our markets in 2018
to increase to 2.4% of existing inventory, as compared to an
increase of 2.2% in 2017. As a result, we forecast same-store
revenue growth to moderate in 2018 to the low 2% range from
2.5% in 2017.
We plan to commence construction on approximately $900
million of new development in 2018. These anticipated
development starts are primarily located in more supply-
constrained, infill suburban submarkets where development
economics are currently most attractive. We will continue
to structure new development opportunities primarily as
longer-term purchase contracts with modest at-risk deposits to
preserve investment flexibility.
Finally, we enter 2018 with a very strong balance sheet. At year-
end 2017, Net debt-to-Core EBITDA was 5.0x, Interest Coverage
was 6.9x and our current development activity was 75% match-
funded with long-term capital. In 2018, we plan to continue
our practice of substantially match-funding new investment
commitments with long-term capital in order to maintain
financial flexibility, strong credit metrics and attractive
investment margins.
CONCLUSION
In 2017, we (i) produced a seventh consecutive year of above
sector average Core FFO per share growth, (ii) completed a
Company record $1.9 billion of new development activity, (iii)
further integrated our sustainability platform into our business,
and (iv) delivered another year of exceptional customer service,
spearheaded by our talented and committed associates.
While we expect apartment fundamentals to moderate in
2018, we believe AvalonBay is uniquely positioned to continue
delivering Core FFO and dividend per share growth that
exceeds the multifamily sector average.
Thank you for your continued support.
TIMOTHY J. NAUGHTON
Chairman and CEO
AVA NoMa Washington, DC
4
AVA DoBro Brooklyn, NY
Avalon Chino Hills Chino Hills, CA
5
AVALONBAY | 2017 Annual Report TABLE OF CONTENTS
Form 10-K Page
DEFINITIONS AND RECONCILIATIONS
Of Non-GAAP Financial Measures and Other Terms
Market for Registrant’s Common Equity,
Related Stockholder Matters and
Issuer Purchases of Equity Securities
Selected Financial Data
Management’s Discussion and
Analysis of Financial Condition and
Results of Operations
Quantitative and Qualitative Disclosures
about Market Risk
Changes in and Disagreements
with Accountants on Accounting
and Financial Disclosure
30
31
35
55
55
Consolidated Financial Statements
F-3
This Annual Report contains certain non-GAAP financial measures
and other terms. The definitions and calculations of these non-GAAP
financial measures and other terms may differ from the definitions
and methodologies used by other REITs and, accordingly, may not
be comparable. The non-GAAP financial measures referred to below
should not be considered an alternative to net income as an indication
of our performance. In addition, these non-GAAP financial measures
do not represent cash generated from operating activities in accordance
with GAAP and therefore should not be considered as an alternative
measure of liquidity or as indicative of cash available to fund cash
needs. The definitions of non-GAAP financial measures and other
terms not included below (Funds from Operations or FFO, Core FFO,
Net Operating Income or NOI, Established/Same-Store Communities)
are contained in our annual report on Form 10-K, which is distributed
with and a part of this Annual Report.
CORE FFO RECONCILIATION TO NET INCOME (Dollars in thousands)
Full Year 2017 Full Year 2014 Full Year 2012 Full Year 2007
Net income attributable to common stockholders
$876,921
$683,567
$423,869
$358,160
Depreciation - real estate assets, including joint venture adjustments
582,907
449,769
265,627
184,731
Distributions to noncontrolling interests
42
35
28
-
Gain on sale of unconsolidated entities holding previously depreciated real estate
(40,053)
(73,674)
(7,972)
(59,927)
Gain on sale of previously depreciated real estate
(252,599)
(108,662)
(146,311)
(106,487)
Gain on acquisition of unconsolidated real estate entity
Dividends attributable to preferred stock
Minority interest expense, including discontinued operations
-
-
-
-
-
-
(14,194)
-
-
-
(8,700)
280
FFO attributable to common stockholders
$1,167,218
$951,035
$521,047
$368,057
Adjusting Items
Joint venture losses (gains)
Joint venture promote
Impairment loss on real estate
Casualty loss (gain), net on real estate
Business interruption insurance proceeds
Lost NOI from casualty losses covered by business interruption insurance
Loss (gain) on extinguishment of debt
Hedge ineffectiveness
Severance related costs, compensation plan redesign
Development pursuit and other write-offs
Loss (gain) on sale of other real estate
Acquisition costs
Legal settlements
950
(63,322)
(4,995)
(26,742)
9,350
(3,100)
(3,495)
7,904
25,472
(753)
87
1,406
10,907
92
680
-
-
-
(2,494)
-
412
-
815
2,564
8,753
(7,682)
-
-
-
3,321
-
-
2,070
-
-
-
(280)
9,965
1,362
-
-
-
-
-
-
-
-
-
-
(544)
-
-
Core FFO attributable to common stockholders
$1,189,976
$890,081
$532,490
$367,513
Average shares outstanding - diluted
Earnings per share - diluted
FFO per common share - diluted
Core FFO per common share - diluted
138,066,686
131,237,502
98,025,152
79,856,927
$6.35
$8.45
$8.62
$5.21
$7.25
$6.78
$4.32
$5.32
$5.43
$4.49
$4.61
$4.60
7
FINANCIALS
6
AVA DoBro Brooklyn, NY
AVALONBAY | 2017 Annual Report Interest Coverage is calculated by the Company as Core EBITDA
divided by the sum of interest expense, net, and preferred dividends,
if applicable. The Company presents Interest Coverage because
it provides rating agencies and investors an additional means of
comparing our ability to service debt obligations to that of other
companies. EBITDA is defined by the Company as net income or
loss attributable to the Company before interest income and expense,
income taxes, depreciation and amortization. A reconciliation of
Core EBITDA and a calculation of Interest Coverage for the three
months ended December 31, 2017 are as follows:
Net Debt-to-Core EBITDA is calculated by the Company as total
debt that is consolidated for financial reporting purposes, less
consolidated cash and cash in escrow, divided by annualized fourth
quarter 2017 Core EBITDA, as adjusted. For a calculation of Core
EBITDA, see "Interest Coverage”. A calculation of Net Debt-to-Core
EBITDA is as follows:
CALCULATION OF NET DEBT-TO-CORE EBITDA
(Dollars in thousands)
INTEREST COVERAGE RECONCILIATION
TO NET INCOME (Dollars in thousands)
Quarter Ending
12/31/2017
$237,573
53,833
39
157,100
$448,545
$(1,369)
(92,845)
11,153
(358)
$365,126
$(5,438)
1,662
92
(66)
232
589
$362,197
$52,523
6.9x
Net income attributable to
common stockholders
Interest expense, net, inclusive of loss on
extinguishment of debt, net
Income tax expense
Depreciation expense
EBITDA
NOI from real estate assets sold or held for sale
Gain on sale of communities
Loss on other real estate transactions
Joint venture income
Consolidated EBITDA after
disposition activity
Casualty and impairment gain
Lost NOI from casualty losses covered by
business interruption insurance
Acquisition costs
Severance related costs
Development pursuit and other write-offs
Legal settlements
Core EBITDA
Interest expense, net
Interest Coverage
8
Total debt principal(1)
Cash and cash in escrow
Net Debt
Core EBITDA
Core EBITDA, annualized
Net Debt-to-Core EBITDA
Quarter Ending
12/31/2017
$7,404,313
(201,906)
$7,202,407
$362,197
$1,448,788
5.0x
(1) Balance at December 31, 2017 excludes $10,850 of debt discount and $36,386 of
deferred financing costs as reflected in unsecured notes, net, and $16,351 of debt
discount and $11,256 of deferred financing costs as reflected in notes payable on the
Condensed Consolidated Balance Sheets.
Projected Stabilized Yield (also expressed as “weighted average
initial stabilized yield”) is defined as Projected NOI as a percentage
of Total Capital Cost.
Projected NOI represents management’s estimate of projected
stabilized rental revenue minus projected stabilized operating
expenses. Projected NOI is calculated based on the first twelve
months of Stabilized Operations, which is defined as the earlier
of (i) attainment of 95% physical occupancy or (ii) the one-year
anniversary of completion of development, 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 for
development communities do not include property management fee
expense. Projected gross potential for development communities is
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. The
weighted average Projected NOI as a percentage of Total Capital Cost
is weighted based on the Total Capital Cost of each community.
Total Capital Cost includes all capitalized costs projected to be or
actually incurred to develop the respective development community
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.
Unencumbered NOI as calculated by the Company represents NOI generated by real estate assets unencumbered by outstanding secured debt as
a percentage of total NOI generated by real estate assets. The Company believes that current and prospective unsecured creditors of the Company
view Unencumbered NOI as one indication of the borrowing capacity of the Company. Therefore, when reviewed together with the Company’s
Interest Coverage, EBITDA and cash flow from operations, the Company believes that investors and creditors view Unencumbered NOI as a
useful supplemental measure for determining the financial flexibility of an entity. A calculation of Unencumbered NOI for the years ending
December 31, 2017 and December 31, 2016 are as follows:
CALCULATIONS OF UNENCUMBERED NOI (Dollars in thousands)
Net income
Indirect operating expenses, net of corporate income
Investments and investment management expense
Expensed acquisition, development and other pursuit costs, net of recoveries
Interest expense, net
Loss on extinguishment of debt, net
General and administrative expense
Joint venture income
Depreciation expense
Casualty and impairment (gain) loss, net
Gain on sale of communities
Loss (gain) on other real estate transactions
NOI from real estate assets sold or held for sale
NOI
NOI for Established Communities
NOI for Other Stabilized Communities(1)
NOI for Development/Redevelopment Communities(2)
NOI from real estate assets sold or held for sale
Total NOI generated by real estate assets
NOI on encumbered assets
NOI on unencumbered assets
Unencumbered NOI
2017
2016
$876,660
$1,033,708
65,398
61,403
5,936
2,736
4,822
9,922
199,661
187,510
25,472
7,075
50,814
46,076
(70,744)
(64,962)
584,150
531,434
6,250
(3,935)
(252,599)
(374,623)
10,907
(10,224)
(14,573)
(44,263)
$1,490,068
$1,383,943
$1,112,472
$1,084,351
196,733
165,530
180,863
160,816
14,573
17,509
$1,504,641
$1,428,206
168,005
281,142
$1,336,636
$1,147,064
89%
80%
(1) NOI for Other Stabilized Communities in 2016 includes $20,306 of business interruption insurance proceeds related to the Edgewater casualty loss.
(2) NOI for Development/Redevelopment Communities in 2017 includes $3,495 of business interruption insurance proceeds related to the Maplewood casualty loss.
9
AVALONBAY | 2017 Annual Report S
E
T
O
N
1. TOTAL SHAREHOLDER RETURN: The change in the value
over the period stated with all dividends reinvested.
Total Shareholder Return is presented as the compound
annual growth rate. Total Shareholder Return for each
year within the timeframe presented may vary.
2. CORE FFO PER SHARE GROWTH: The compound annual growth
rate of Operating FFO per Share, as Reported (which represents
Core FFO or the equivalent measure per S&P Global) during
the periods indicated. Core FFO per Share Growth for each
year within the timeframe presented may vary. The multifamily
sector weighted average includes AIV, CPT, EQR, ESS, MAA
and UDR and is weighted based on total market capitalization
per S&P Global as of December 31, 2017. 2017 Core FFO per
share for CPT and EQR is adjusted to account for large portfolio
dispositions which occurred in 2016 (both companies) and
resulted in the payment of special dividends. For the purpose
of this calculation, the weighted average share count used to
calculate the Core FFO per share amounts for CPT and EQR
was reduced by the estimated total amount of special dividends
paid (per share special dividend multiplied by the quarterly
weighted average share count in which the special dividend was
paid) divided by the 20-day trailing average stock price prior
to the ex-dividend date (see following table for calculations).
EQR (Dollars in thousands)
Core FFO
Wtd. avg. common shares outstanding
Reported Core FFO per share
Special dividend per share
Ex-dividend date
Trailing 20 day stock price period to special dividend
Shares repurchased
Cumulative shares repurchased
Adjusted wtd. avg. common shares
Adjusted Core FFO per share
CPT (Dollars in thousands)
Core FFO
Wtd. avg. common shares outstanding
Reported Core FFO per share
Special dividend per share
Ex-dividend date
Trailing 20 day stock price period to special dividend
Shares repurchased
Cumulative shares repurchased
Adjusted wtd. avg. common shares
Adjusted Core FFO per share
Q1 2016
Q2 2016
Q3 2016
Q4 2016 Full Year 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017 Full Year 2017
$289,481
$290,359
$297,190
$302,620
$1,179,650
$283,721
$293,891
$304,838
$316,787
$1,199,237
382,243
382,065
382,373
381,860
382,135
382,280
382,692
382,945
383,105
382,756
$0.76
$8.00
3/1/16
$73.54
41,585
$0.76
-
-
-
-
$0.78
$3.00
9/22/16
$64.59
17,761
$0.79
$3.09
$0.74
$0.77
$0.80
$0.83
$3.13
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41,585
41,585
59,345
59,345
59,345
59,345
59,345
59,345
59,345
340,658
340,480
323,028
322,515
331,670
322,935
323,347
323,600
323,760
382,756
$0.85
$0.85
$0.92
$0.94
$3.56
$0.88
$0.91
$0.94
$0.98
$3.71
Q1 2016
Q2 2016
Q3 2016
Q4 2016 Full Year 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017 Full Year 2017
$110,110
$105,578
$104,232
$105,544
$425,464
$100,355
$105,978
$103,187
$114,552
$424,072
91,593
91,753
91,901
91,926
91,793
92,029
92,074
93,111
97,068
93,571
$1.20
$1.15
-
-
-
-
-
-
-
-
-
-
$1.13
$4.25
9/21/16
$87.01
4,489
4,489
$1.15
$4.64
$1.09
$1.15
$1.11
$1.18
$4.53
-
-
-
-
4,489
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,489
4,489
4,489
4,489
91,593
91,753
87,412
87,437
89,549
87,540
87,585
88,622
92,579
93,571
$1.20
$1.15
$1.19
$1.21
$4.75
$1.15
$1.21
$1.16
$1.24
$4.76
View from AVA DoBro
Brooklyn, NY
10
11
AVALONBAY | 2017 Annual Report BOARD OF DIRECTORS
Timothy J. Naughton (4)
Chairman of the Board,
Chief Executive Officer & President,
AvalonBay Communities, Inc.
Glyn F. Aeppel (4, 5)
Chief Executive Officer & President,
Glencove Capital
A hotel investment and advisory company
Terry S. Brown (2, 4)
Chairman of the Board &
Chief Executive Officer,
Asana Partners
A real estate investment company
Alan B. Buckelew (2, 3)
Chief Information Officer,
Carnival Corporation & plc
A global cruise line
EXECUTIVE OFFICERS
Timothy J. Naughton
Chairman, Chief Executive Officer
& President
Kevin P. O’Shea
Chief Financial Officer
Matthew H. Birenbaum
Chief Investment Officer
Ronald L. Havner, Jr. (2, 4)
Chairman of the Board &
Chief Executive Officer,
Public Storage, Inc.
A real estate investment trust
Stephen P. Hills
Founding Director, Business
Law Scholars Program,
Georgetown Law
Richard J. Lieb (2, 4)
Managing Director,
Chairman of Real Estate
Greenhill & Co., LLC
An investment bank
Peter S. Rummell (4, 5)
Private Investor
H. Jay Sarles (1, 3, 5)
Private Investor
Susan Swanezy (2, 4)
Partner
Hodes Weill & Associates, LP
A global advisory firm
W. Edward Walter (3, 5)
Professor, McDonough School of Business,
Georgetown University
(1) Lead Independent Director
(2) Audit Committee
(3) Compensation Committee
(4) Investment and Finance Committee
(5) Nominating and Corporate Governance Committee
Sean J. Breslin
Chief Operating Officer
Michael M. Feigin
Chief Construction Officer
Leo. S. Horey III
Chief Administrative Officer
William M. McLaughlin
Executive Vice President Development –
Northeast
Edward M. Schulman
Executive Vice President
General Counsel & Secretary
Stephen W. Wilson
Executive Vice President Development –
West Coast & Mid-Atlantic
Keri A. Shea
Senior Vice President - Finance & Treasurer
(Principal Accounting Officer)
our purpose:
CREATING A BETTER WAY TO LIVE
our core values:
Commitment to Integrity Focus on Continuous Improvement Spirit of Caring
12
Avalon West Hollywood West Hollywood, CA
13
AVALONBAY | 2017 Annual Report
AVA DoBro Brooklyn, NY
INVESTOR INFORMATION
Corporate Office
AvalonBay Communities, Inc.
671 North Glebe Road, Suite 800
Arlington, VA 22203
Phone: 703.329.6300
Website
www.avalonbay.com
Common Stock Listing
(Symbol: AVB)
New York Stock Exchange
Investor Relations Contact
Jason Reilley
AvalonBay Communities, Inc.
671 North Glebe Road, Suite 800
Arlington, VA 22203
Phone: 703.329.6300
Email: ir@avalonbay.com
Form 10-K
A copy of the Company’s Annual Report
on Form 10-K as filed with the Securities
and Exchange Commission is being
distributed with this Annual Report and
also may be obtained without charge by
contacting Investor Relations.
Transfer Agent
Computershare Shareowner Services
Regular Mail
P.O. Box 505000
Louisville, KY 40233
Overnight Delivery
462 South 4th Street, Suite 1600
Louisville, KY 40202
Phone: 866.230.0668
www.computershare.com
Forward-Looking Statements
This Annual Report contains “forward-
looking statements” within the meaning
of the Securities Act of 1933 and the
Securities Exchange Act of 1934. Please
see our discussion titled “Forward-
Looking Statements” on page 51 of our
accompanying Annual Report on Form
10-K for a discussion regarding risks
associated with these statements.
historical information set forth below
is not necessarily indicative of future
performance. Data for the FTSE NAREIT
Apartment REIT Index and the S&P 500
Index were provided to the Company by
S&P Global Market Intelligence.
The Stock Performance Graph
provides a comparison, from December
2012 through December 2017, of the
cumulative total shareholder return
(assuming reinvestment of dividends)
among the Company, a peer group index
(the FTSE NAREIT Apartment REIT Index)
that includes the Company, and the S&P
500 based on an initial purchase price
of $100. The FTSE NAREIT Apartment
REIT Index includes only REITs that
invest directly or indirectly primarily in the
equity ownership of multifamily residential
apartment communities. Upon written
request to the Company’s secretary, the
Company will provide any stockholder
with a list of REITs included in the FTSE
NAREIT Apartment REIT Index. The
STOCK PERFORMANCE
$250
$200
$150
$100
$50
14
15
2012
2013
2014
2015
2016
2017
• AvalonBay • FTSE NAREIT Apartment • S&P 500
Period Ending
AvalonBay Communities, Inc.
FTSE NAREIT Apartment REIT Index
S&P 500
2012
$100
100
100
2013
90
94
132
2014
129
131
151
2015
149
153
153
2016
148
157
171
2017
154
163
208
AVALONBAY | 2017 Annual Report 16
AVALONBAY | 2017 Annual Report