According to a recent update on Q2 numbers from Avalonbay Communities Inc., total rental revenue for established communities for the three months ending June 30, 2018 is expected to increase between 2.4% and 2.5% over the prior year period. The midpoint of this range is approximately 15 basis-points above what the company’s expectation for second quarter performance was when the company published its outlook in January of this year.
Avalonbay also revealed that during the quarter to date, it sold two wholly-owned operating communities for an aggregate sale price of approximately $195 million, has two additional wholly-owned communities under contract or in advanced marketing for an expected aggregate sale price of approximately $280 million, and started construction on two new communities for an expected aggregate total capital cost of approximately $205 million.
As of March 31, 2018, the company owned or held a direct or indirect ownership interest in 288 apartment communities containing 84,162 apartment homes in 12 states and the District of Columbia, of which 18 communities were under development and 15 communities were under redevelopment. The company is in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas primarily in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and the Northern and Southern California regions of the United States.
As reported previously by The REIT Wire, the company entered new markets in the past year. Last September, the REIT revealed that it had acquired The Lodge Denver West, a 252-unit apartment home community completed in 2016, located in Lakewood, CO. The Company acquired the community on September 1, 2017 for a purchase price of approximately $76.8 million. At the time, the company said that “Denver shares many of the best characteristics of our established core markets and has become an attractive region for well-educated workers in knowledge-based industries that are driving the 21st Century economy. We look forward to growing our presence in the greater Denver area over time, through a combination of acquisitions and new development activity.”
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