AVALONBAY COMMUNITIES INC

Previous wording

•Net income attributable to common stockholders for the three months ended March 31, 2024 was $173,449,000, an increase of $26,547,000, or 18.1%, from the prior year period. The increase is primarily attributable to an increase in NOI from communities over the prior year period.

Current wording

•Net income attributable to common stockholders for the three months ended June 30, 2024 was $253,934,000, a decrease of $113,989,000, or 31.0%, from the prior year period. The decrease is primarily attributable to decreases in real estate sales and related gains, partially offset by an increase in NOI from communities, over the prior year period.

Previous wording

•Same Store NOI attributable to our apartment rental operations, including parking and other ancillary residential revenue ("Residential"), for the three months ended March 31, 2024 was $463,741,000, an increase of $16,671,000, or 3.7%, over the prior year period. The increase over the prior year period was due to an increase in Residential revenue of $26,845,000, or 4.2%, partially offset by an increase in Residential property operating expenses of $10,174,000, or 5.2%.

Current wording

•Same Store NOI attributable to our apartment rental operations, including parking and other ancillary residential revenue ("Residential"), for the three months ended June 30, 2024 was $462,074,000, an increase of $13,248,000, or 3.0%, over the prior year period. The increase over the prior year period was due to an increase in Residential revenue of $20,644,000, or 3.2%, partially offset by an increase in Residential property operating expenses of $7,396,000, or 3.8%.

Previous wording

•17 wholly-owned communities under construction, which are expected to contain 6,064 apartment homes with a projected total capitalized cost of $2,500,000,000.

Current wording

•17 wholly-owned communities under construction, which are expected to contain 6,066 apartment homes with a projected total capitalized cost of $2,537,000,000.

Previous wording

•Land or rights to land on which we expect to develop an additional 32 apartment communities that, if developed as expected, will contain 11,167 apartment homes.

Current wording

•Land or rights to land on which we expect to develop an additional 30 apartment communities that, if developed as expected, will contain 9,991 apartment homes.

Previous wording

•Same Store is composed of consolidated communities where a comparison of operating results from the prior year to the current year is meaningful as these communities were owned and had stabilized occupancy as of the beginning of the prior year period. For the three month periods ended March 31, 2024 and 2023, Same Store communities are consolidated for financial reporting purposes, had stabilized occupancy as of January 1, 2023, are not conducting or are not probable to conduct substantial redevelopment activities and are not held for sale as of March 31, 2024 or probable for disposition to unrelated third parties within the current year. A community is considered to have stabilized occupancy at the earlier of (i) attainment of 90% physical occupancy or (ii) the one-year anniversary of completion of development or redevelopment.

Current wording

•Same Store is composed of consolidated communities where a comparison of operating results from the prior year to the current year is meaningful as these communities were owned and had stabilized occupancy as of the beginning of the prior year period. For the six month periods ended June 30, 2024 and 2023, Same Store communities are consolidated for financial reporting purposes, had stabilized occupancy as of January 1, 2023, are not conducting or are not probable to conduct substantial redevelopment activities and are not held for sale as of June 30, 2024 or probable for disposition to unrelated third parties within the current year. A community is considered to have stabilized occupancy at the earlier of (i) attainment of 90% physical occupancy or (ii) the one-year anniversary of completion of development or redevelopment.

Previous wording

Our results of operations are driven by our operating platform and are primarily affected by both overall and individual geographic market conditions and apartment fundamentals and is reflected in changes in Same Store NOI; NOI derived from acquisitions, development completions and development under construction and in lease-up; loss of NOI related to disposed communities; and capital market and financing activity. A comparison of our operating results for the three months ended March 31, 2024 and 2023 is as follows (unaudited, dollars in thousands).

Current wording

Our results of operations are driven by our operating platform and are primarily affected by both overall and individual geographic market conditions and apartment fundamentals and is reflected in changes in Same Store NOI; NOI derived from acquisitions, development completions and development under construction and in lease-up; loss of NOI related to disposed communities; and capital market and financing activity. A comparison of our operating results for the three and six months ended June 30, 2024 and 2023 is as follows (unaudited, dollars in thousands).

Previous wording

Net income attributable to common stockholders increased $26,547,000, or 18.1%, to $173,449,000 for the three months ended March 31, 2024, as compared to the prior year period, primarily due to increases in NOI from communities over the prior year period.

Current wording

Net income attributable to common stockholders decreased $113,989,000, or 31.0%, to $253,934,000 and $87,442,000, or 17.0%, to $427,383,000 for the three and six months ended June 30, 2024, respectively, as compared to the prior year periods, primarily due to decreases in real estate sales and related gains, partially offset by an increase in NOI from communities, over the prior year periods.

Previous wording

NOI. We define NOI as total property revenue less direct property operating expenses (including property taxes), and excluding corporate-level income (including management, development and other fees), property management and other indirect operating expenses, net of corporate income, expensed transaction, development and other pursuit costs, net of recoveries, interest expense, net, loss on extinguishment of debt, net, general and administrative expense, income from unconsolidated investments, depreciation expense, income tax expense, casualty and impairment loss, gain on sale of communities, other real estate activity and net operating income from real estate assets sold or held for sale. Management considers NOI to be an important and appropriate supplemental performance measure to net income because it helps both investors and management to understand the core operations of a community or communities prior to the allocation of any corporate-level property management overhead or financing-related costs. NOI reflects the operating performance of a community and allows for an easier comparison of the operating performance of individual assets or groups of assets. In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impact to overhead as a result of acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets.

Current wording

NOI. We define NOI as total property revenue less direct property operating expenses (including property taxes), and excluding corporate-level income (including management, development and other fees), property management and other indirect operating expenses, net of corporate income, expensed transaction, development and other pursuit costs, net of recoveries, interest expense, net, loss on extinguishment of debt, net, general and administrative expense, income from unconsolidated investments, depreciation expense, income tax (benefit) expense, casualty and impairment loss, gain on sale of communities, other real estate activity and net operating income from real estate assets sold or held for sale. Management considers NOI to be an important and appropriate supplemental performance measure to net income because it helps both investors and management to understand the core operations of a community or communities prior to the allocation of any corporate-level property management overhead or financing-related costs. NOI reflects the operating performance of a community and allows for an easier comparison of the operating performance of individual assets or groups of assets. In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impact to overhead as a result of acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets.

Previous wording

In conjunction with our continued centralization of operating activities into a shared services model, we changed our presentation for centralized shared service costs to reflect these platform costs in property management and other indirect operating expenses, net of corporate income for all periods presented. Total property management and other indirect operating expenses, net of corporate income for the three months ended March 31, 2023 as presented in the following tables includes $3,152,000 of shared services costs for this change.

Current wording

In conjunction with our continued centralization of operating activities into a shared services model, we changed our presentation for centralized shared service costs to reflect these platform costs in property management and other indirect operating expenses, net of corporate income for all periods presented. Total property management and other indirect operating expenses, net of corporate income for the three and six months ended June 30, 2023 as presented in the following tables includes $3,143,000 and $6,295,000, respectively, of shared services costs for this change.

Previous wording

NOI does not represent cash generated from operating activities in accordance with GAAP, and NOI should not be considered an alternative to net income as an indication of our performance. NOI should also not be considered an alternative to net cash flow from operating activities, as determined by GAAP, as a measure of liquidity, nor is NOI indicative of cash available to fund cash needs. Residential NOI represents results attributable to our apartment rental operations, including parking and other ancillary residential revenue. Reconciliations of NOI and Residential NOI for the three months ended March 31, 2024 and 2023 to net income for each period are as follows (unaudited, dollars in thousands):

Current wording

NOI does not represent cash generated from operating activities in accordance with GAAP, and NOI should not be considered an alternative to net income as an indication of our performance. NOI should also not be considered an alternative to net cash flow from operating activities, as determined by GAAP, as a measure of liquidity, nor is NOI indicative of cash available to fund cash needs. Residential NOI represents results attributable to our apartment rental operations, including parking and other ancillary residential revenue. Reconciliations of NOI and Residential NOI for the three and six months ended June 30, 2024 and 2023 to net income for each period are as follows (unaudited, dollars in thousands):

Previous wording

The following presents our Residential NOI and respective changes for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 (unaudited, dollars in thousands):

Current wording

The following presents our Residential NOI and respective changes for the three and six months ended June 30, 2024 as compared to the three and six months ended June 30, 2023 (unaudited, dollars in thousands):

Previous wording

The 3.7% increase in our Same Store Residential NOI for the three months ended March 31, 2024 is due to an increase in Residential revenue of $26,845,000, or 4.2%, partially offset by an increase in Residential property operating expenses of $10,174,000, or 5.2%, over the prior year period.

Current wording

The 3.0% increase in our Same Store Residential NOI for the three months ended June 30, 2024 is due to an increase in Residential revenue of $20,644,000, or 3.2%, partially offset by an increase in Residential property operating expenses of $7,396,000, or 3.8%, over the prior year period. The 3.3% increase in our Same Store Residential NOI for the six months ended June 30, 2024 is due to an increase in Residential revenue of $47,122,000, or 3.7%, partially offset by an increase in Residential property operating expenses of $17,532,000, or 4.5%, over the prior year period.

Previous wording

Rental and other income increased $37,422,000, or 5.6%, for the three months ended March 31, 2024, compared to the prior year period, primarily due to the increased rental revenue from our Same Store communities, discussed below.

Current wording

Rental and other income increased $36,063,000, or 5.2%, and $73,484,000, or 5.4%, for the three and six months ended June 30, 2024, respectively, compared to the prior year periods, primarily due to the increased rental revenue from our Same Store communities, discussed below.

Previous wording

Consolidated Communities — The weighted average number of occupied apartment homes for consolidated communities increased to 78,829 apartment homes for the three months ended March 31, 2024, compared to 77,482 homes for the prior year period. The weighted average monthly revenue per occupied apartment home increased to $2,999 for the three months ended March 31, 2024, compared to $2,892 in the prior year period.

Current wording

Consolidated Communities — The weighted average number of occupied apartment homes for consolidated communities increased to 79,111 apartment homes for the six months ended June 30, 2024, compared to 77,507 homes for the prior year period. The weighted average monthly revenue per occupied apartment home increased to $3,016 for the six months ended June 30, 2024, compared to $2,922 in the prior year period.

Previous wording

Same Store Communities — The following table presents the change in Same Store Residential revenue, including the attribution of the change between average revenue per occupied home and Economic Occupancy (as defined below) for the three months ended March 31, 2024 (unaudited, dollars in thousands).

Current wording

Same Store Communities — The following table presents the change in Same Store Residential revenue, including the attribution of the change between average revenue per occupied home and Economic Occupancy (as defined below) for the six months ended June 30, 2024 (unaudited, dollars in thousands).

Previous wording

Same Store uncollectible lease revenue decreased for the three months ended March 31, 2024 by $5,519,000. Uncollectible lease revenue was impacted by a decrease in government rent relief of $1,427,000 for the three months ended March 31, 2024, from the prior year period. Adjusting to remove the impact of rent relief, uncollectible lease revenue as a percentage of Same Store Residential revenue decreased to 1.9% in the three months ended March 31, 2024 from 3.0% in the three months ended March 31, 2023.

Current wording

Same Store uncollectible lease revenue decreased for the three and six months ended June 30, 2024 by $966,000 and $6,402,000, respectively. The decrease in Same Store uncollectible lease revenue was partially offset by a decrease in government rent relief of $1,555,000 and $2,931,000 for the three and six months ended June 30, 2024, respectively, from the prior year periods. Adjusting to remove the impact of rent relief, uncollectible lease revenue as a percentage of Same Store Residential revenue decreased to 1.9% in both the three and six months ended June 30, 2024 from 2.3% and 2.6%, respectively, in the three and six months ended June 30, 2023.

Previous wording

Direct property operating expenses, excluding property taxes, increased $9,082,000, or 7.0%, for the three months ended March 31, 2024, compared to the prior year period, primarily due to the addition of newly developed apartment communities as well as increased Residential operating expenses at our Same Store communities as discussed below.

Current wording

Direct property operating expenses, excluding property taxes, increased $5,180,000, or 3.8%, and $14,262,000, or 5.4%, for the three and six months ended June 30, 2024, respectively, compared to the prior year periods, primarily due to the addition of newly developed apartment communities as well as increased Residential operating expenses at our Same Store communities as discussed below.

Previous wording

Same Store Residential direct property operating expenses, excluding property taxes, increased $6,758,000, or 5.4%, for the three months ended March 31, 2024, compared to the prior year period, primarily due to increased utility costs from our bulk internet offering and trash, as well as maintenance costs.

Current wording

Same Store Residential direct property operating expenses, excluding property taxes, increased $3,010,000, or 2.4%, and $9,700,000, or 3.9%, for the three and six months ended June 30, 2024, respectively, compared to the prior year periods, primarily due to increased utility costs from our bulk internet offering, trash costs and increased property insurance premiums.

Previous wording

Property taxes increased $5,285,000, or 7.1%, for the three months ended March 31, 2024, compared to the prior year period, primarily due to the addition of newly developed apartment communities and increases for our Same Store Residential portfolio, partially offset by decreased property taxes from dispositions.

Current wording

Property taxes increased $6,069,000, or 8.1%, and $11,353,000, or 7.6%, for the three and six months ended June 30, 2024, respectively, compared to the prior year periods, primarily due to the addition of newly developed apartment communities and increases for our Same Store Residential portfolio, partially offset by decreased property taxes from dispositions.

Previous wording

Same Store Residential property taxes increased $3,416,000, or 4.8%, for the three months ended March 31, 2024, compared to the prior year period, due to increased assessments across the portfolio, successful appeals in the prior year period and the expiration of property tax incentive programs primarily at certain of our properties in New York City. The expiration of property tax incentive programs represents $1,476,000 or 43% of the 4.8% increase in property taxes for the three months ended March 31, 2024.

Current wording

Same Store Residential property taxes increased $4,386,000, or 6.3%, and $7,832,000, or 5.6%, for the three and six months ended June 30, 2024, respectively, compared to the prior year periods, due to increased assessments and rates across the portfolio, successful appeals in the prior year period in excess of current period successful appeals and the expiration of property tax incentive programs primarily at certain of our properties in New York City. The expiration of property tax incentive programs represents $1,810,000, or 41%, of the 6.3% increase in property taxes for the three months ended June 30, 2024 and $3,199,000, or 41%, of the 5.6% increase in property taxes for the six months ended June 30, 2024.

Previous wording

Property management and other indirect operating expenses increased $2,002,000, or 5.7%, for the three months ended March 31, 2024, compared to the prior year period, primarily due to increased costs related to initiatives to improve future efficiency in services for residents and prospects and investments in technology.

Current wording

Property management and other indirect operating expenses, net of corporate income increased $4,567,000, or 13.1%, and $6,569,000, or 9.4%, for the three and six months ended June 30, 2024, respectively, compared to the prior year periods, primarily due to increased costs related to investments in technology and process related spend for initiatives to improve future efficiency in services for residents and prospects and increased advocacy costs.

Previous wording

Expensed transaction, development and other pursuit costs, net of recoveries primarily reflect costs incurred for write downs and abandonment of Development Rights and development pursuits not yet considered probable for development, as well as costs related to abandoned acquisition and disposition pursuits, offset by any recoveries of costs incurred. In periods of increased acquisition pursuit activity, periods of economic downturn or when there is limited access to capital, these costs can be volatile and may vary significantly from year to year. In addition, the timing for potential recoveries will not always align with the timing for expensing an abandoned pursuit. Expensed transaction, development and other pursuit costs, net of recoveries, was $4,245,000 and $2,992,000 for the three months ended March 31, 2024 and 2023, respectively.

Current wording

Expensed transaction, development and other pursuit costs, net of recoveries includes costs incurred for write downs and abandonment of Development Rights and development pursuits not yet considered probable for development, as well as costs related to abandoned acquisition and disposition pursuits, offset by any recoveries of costs incurred. In periods of increased acquisition and pursuit activity, periods of economic downturn or when there is limited access to capital, these costs can be volatile and may vary significantly from year to year. In addition, the timing for potential recoveries will not always align with the timing for expensing an abandoned pursuit. Expensed transaction, development and other pursuit costs, net of recoveries, was $1,417,000 and $5,662,000 for the three and six months ended June 30, 2024, respectively, and $1,261,000 and $4,253,000 for the three and six months ended June 30, 2023, respectively.

Previous wording

Interest expense, netdecreased $2,055,000, or 3.6% for the three months ended March 31, 2024, compared to the prior year period. This category includes interest costs offset by capitalized interest pertaining to development and redevelopment activity, amortization of premium/discount on debt, interest income and any mark-to-market impact from derivatives not in qualifying hedge relationships. The decrease for the three months ended March 31, 2024 is primarily due to a decrease in amounts of unsecured indebtedness from the repayment of the variable rate unsecured term loan in the prior year, as well as an increased capitalized interest, compared to the prior year period.

Current wording

Interest expense, netincreased $5,493,000, or 10.6%, and $3,438,000, or 3.2%, for the three and six months ended June 30, 2024, respectively, compared to the prior year periods. This category includes interest costs offset by capitalized interest pertaining to development and redevelopment activity, amortization of premium/discount on debt, interest income and any mark-to-market impact from derivatives not in qualifying hedge relationships. The increases for the three and six months ended June 30, 2024 are primarily due to increases in amounts of unsecured indebtedness and decreases in interest income compared to the prior year periods due to lower cash amounts invested. The increase for the three months ended June 30, 2024 is also due to decreased capitalized interest, compared to the prior year period.

Previous wording

Casualty and impairment loss for the three months ended March 31, 2024 and 2023 of $2,935,000 and $5,051,000, respectively, for the property and casualty damage to certain of our communities. The charge for the three months ended March 31, 2024 relates to damage at communities in California from extensive rainfall and a fire at a community in New Jersey. The charge for the three months ended March 31, 2023 relates to damage across certain communities in our Northeast and California regions related to severe weather.

Current wording

Casualty and impairment loss for the six months ended June 30, 2024 and 2023 was $2,935,000 and $5,051,000, respectively, for the property and casualty damage to certain of our communities. The charge for the six months ended June 30, 2024 relates to damage at communities in California from extensive rainfall and a fire at a community in New Jersey. The charge for the six months ended June 30, 2023 relates to damage across certain communities in our Northeast and California regions related to severe weather.

Previous wording

Income from unconsolidated investments increased $6,002,000 for the three months ended March 31, 2024, compared to the prior year period, primarily due to unrealized property technology investments gains.

Current wording

Income from unconsolidated investments increased $5,854,000 for the six months ended June 30, 2024 compared to the prior year period primarily due to unrealized property technology investments gains, partially offset by the recognition of $1,072,000 of our promoted interest associated with the achievement of a threshold return with the Archstone Multifamily Partners AC LP (the “U.S. Fund”) in the prior year period.

Previous wording

Income tax expenseof $3,560,000 for the three months ended March 31, 2023 was primarily related to The Park Loggia.

Current wording

Income tax expenseof $3,343,000 for the six months ended June 30, 2023 was primarily related to The Park Loggia.

Previous wording

(2)Reflects changes to expected credit losses associated with our lending commitments primarily under our SIP. The timing and amount of actual losses that will be incurred, if any, is to be determined.

Current wording

(3)Reflects changes to expected credit losses associated with our lending commitments primarily under our SIP. The timing and amount of actual losses that will be incurred, if any, is to be determined.

Previous wording

(3)Represents the imputed carry cost of for-sale residential condominiums at The Park Loggia. We compute this adjustment by multiplying the total capitalized cost of completed and unsold for-sale residential condominiums by our weighted average unsecured debt effective interest rate.

Current wording

(4)Represents the imputed carry cost of for-sale residential condominiums at The Park Loggia. We compute this adjustment by multiplying the total capitalized cost of completed and unsold for-sale residential condominiums by our weighted average unsecured debt effective interest rate.

Previous wording

(4)Amount for the three months ended March 31, 2023 is primarily for the recognition of taxes associated with The Park Loggia.

Current wording

(5)Amounts for the three and six months ended June 30, 2023 is primarily for the recognition of taxes associated with The Park Loggia.

Previous wording

We had cash, cash equivalents and restricted cash of $423,550,000 at March 31, 2024, a decrease of $107,410,000 from $530,960,000 at December 31, 2023. The following discussion relates to changes in cash, cash equivalents and restricted cash due to operating, investing and financing activities.

Current wording

We had cash, cash equivalents and restricted cash of $765,353,000 at June 30, 2024, an increase of $234,393,000 from $530,960,000 at December 31, 2023. The following discussion relates to changes in cash, cash equivalents and restricted cash due to operating, investing and financing activities.

Previous wording

•Net cash used in investing activities was primarily due to (i) investment of $207,568,000 in the development and redevelopment of communities and (ii) capital expenditures of $38,690,000 for our wholly-owned communities and non-real estate assets.

Current wording

•Net cash used in investing activities was primarily due to (i) the investment of $439,900,000 in the development and redevelopment of communities, (ii) capital expenditures of $87,036,000 for our wholly-owned communities and non-real estate assets and (iii) acquisition of one wholly-owned community for $62,192,000. These amounts were partially offset by net proceeds from the disposition of three wholly-owned communities of $176,325,000.

Previous wording

•Net cash used in financing activities was primarily due to payment of cash dividends in the amount of $237,005,000.

Current wording

•Net cash used in financing activities was primarily due to payment of cash dividends in the amount of $478,533,000, partially offset by proceeds from the issuance of unsecured notes in the amount of $398,787,000.

Previous wording

The $2,250,000,000 Credit Facility matures in September 2026. The interest rate that would be applicable to borrowings under the Credit Facility is 6.15% at April 30, 2024 and is composed of (i) the Secured Overnight Financing Rate ("SOFR"), applicable to the period of borrowing for a particular draw of funds from the facility (e.g., one month to maturity, three months to maturity, etc.), plus (ii) the current borrowing spread to SOFR of 0.805% per annum, which consists of a 0.10% SOFR adjustment plus 0.705% per annum, assuming a daily SOFR borrowing rate. The borrowing spread to SOFR can vary from SOFR plus 0.63% to SOFR plus 1.38% based upon the rating of our unsecured senior notes. There is also an annual facility commitment fee of 0.12% of the borrowing capacity under the facility, which can vary from 0.095% to 0.295% based upon the rating of our unsecured senior notes. The Credit Facility contains a sustainability-linked pricing component which provides for interest rate margin and commitment fee reductions or increases by meeting or missing targets related to environmental sustainability, specifically greenhouse gas emission reductions, with the adjustment determined annually. The first determination under the sustainability-linked pricing component occurred in July 2023, resulting in reductions of approximately 0.02% to the interest rate margin and 0.005% to the commitment fee due to our achievement of sustainability targets.

Current wording

The $2,250,000,000 Credit Facility matures in September 2026. The interest rate that would be applicable to borrowings under the Credit Facility is 6.19% at July 31, 2024 and is composed of (i) the Secured Overnight Financing Rate ("SOFR"), applicable to the period of borrowing for a particular draw of funds from the facility (e.g., one month to maturity, three months to maturity, etc.), plus (ii) the current borrowing spread to SOFR of 0.805% per annum, which consists of a 0.10% SOFR adjustment plus 0.705% per annum, assuming a daily SOFR borrowing rate. The borrowing spread to SOFR can vary from SOFR plus 0.63% to SOFR plus 1.38% based upon the rating of our unsecured senior notes. There is also an annual facility commitment fee of 0.12% of the borrowing capacity under the facility, which can vary from 0.095% to 0.295% based upon the rating of our unsecured senior notes. The Credit Facility contains a sustainability-linked pricing component which provides for interest rate margin and commitment fee reductions or increases by meeting or missing targets related to environmental sustainability, specifically greenhouse gas emission reductions, with the adjustment determined annually. The annual determination under the sustainability-linked pricing component occurred in July 2024, maintaining reductions of approximately 0.02% to the interest rate margin and 0.005% to the commitment fee due to our achievement of sustainability targets.

Previous wording

(1)In addition, we had $67,010 outstanding in additional letters of credit unrelated to the Credit Facility as of April 30, 2024.

Current wording

(1)In addition, we had $60,913 outstanding in additional letters of credit unrelated to the Credit Facility as of July 31, 2024.

Previous wording

We have a Commercial Paper Program with the maximum aggregate face or principal amount outstanding at any one time not to exceed $500,000,000. Under the terms of the Commercial Paper Program, we may issue, from time to time, unsecured commercial paper notes with varying maturities of less than one year. The Commercial Paper Program is backstopped by our commitment to maintain available borrowing capacity under the Credit Facility in an amount equal to actual borrowings under the Commercial Paper Program. As of April 30, 2024, we had $130,000,000 outstanding under the Commercial Paper Program at a weighted average contractual interest rate of 5.5%.

Current wording

We have a Commercial Paper Program with the maximum aggregate face or principal amount outstanding at any one time not to exceed $500,000,000. Under the terms of the Commercial Paper Program, we may issue, from time to time, unsecured commercial paper notes with varying maturities of less than one year. The Commercial Paper Program is backstopped by our commitment to maintain available borrowing capacity under the Credit Facility in an amount equal to actual borrowings under the Commercial Paper Program.

Previous wording

Under our continuous equity program (the "CEP"), we may sell (and/or enter into forward sale agreements for the sale of) up to $1,000,000,000 of our common stock from time to time. During the three months ended March 31, 2024 and through April 30, 2024, we did not have any sales under this program. As of April 30, 2024, we had $705,961,000 remaining authorized for issuance under this program.

Current wording

Under our continuous equity program (the "CEP"), we may sell (and/or enter into forward sale agreements for the sale of) up to $1,000,000,000 of our common stock from time to time. During the three and six months ended June 30, 2024 and through July 31, 2024, we did not have any sales under this program. As of July 31, 2024, we had $705,961,000 remaining authorized for issuance under this program.

Previous wording

We have a stock repurchase program under which we may acquire shares of our common stock in open market or negotiated transactions up to an aggregate purchase price of $500,000,000 (the "Stock Repurchase Program"). During the three months ended March 31, 2024 and through April 30, 2024, we had no repurchases of shares under this program. As of April 30, 2024, we had $314,237,000 remaining authorized for purchase under this program.

Current wording

We have a stock repurchase program under which we may acquire shares of our common stock in open market or negotiated transactions up to an aggregate purchase price of $500,000,000 (the "Stock Repurchase Program"). During the three and six months ended June 30, 2024 and through July 31, 2024, we had no repurchases of shares under this program. As of July 31, 2024, we had $314,237,000 remaining authorized for purchase under this program.

Previous wording

Future Financing and Capital Needs — Debt Maturities and Material Obligations

Current wording

Debt Maturities, Material Obligations, Future Financing and Capital Needs

Previous wording

One of our principal long-term liquidity needs is the repayment of long-term debt at maturity. For both our unsecured and secured notes, a portion of the principal of these notes may be repaid prior to maturity. Early retirement of our unsecured or secured notes could result in gains or losses on extinguishment. If we do not have funds on hand sufficient to repay our indebtedness as it becomes due, it will be necessary for us to refinance or otherwise provide liquidity to satisfy the debt at maturity. This refinancing may be accomplished by uncollateralized private or public debt offerings, equity issuances, additional debt financing that is secured by mortgages on individual communities or groups of communities or borrowings under our Credit Facility or Commercial Paper Program. In addition, to the extent we have amounts outstanding under the Commercial Paper Program, we are obligated to repay the short-term indebtedness at maturity through either current cash on hand or by incurring other indebtedness, including by way of borrowing under our Credit Facility. Although we believe we will have the capacity to meet our currently anticipated liquidity needs, we cannot assure you that capital from additional debt financing or debt or equity offerings will be available or, if available, that they will be on terms we consider satisfactory.

Current wording

One of our principal long-term liquidity needs is the repayment of long-term debt at maturity. For both our unsecured and secured notes, a portion of the principal of these notes may be repaid prior to maturity. Early retirement of our unsecured or secured notes could result in gains or losses on extinguishment. We may use capital from a variety of sources to repay debt at maturity, including proceeds received from the dispositions of our operating communities or other direct and indirect investments in real estate and cash from operations. If we do not have funds on hand sufficient to repay our indebtedness as it becomes due, it will be necessary for us to refinance or otherwise provide liquidity to satisfy the debt at maturity. This refinancing may be accomplished by uncollateralized private or public debt offerings, equity issuances, additional debt financing that is secured by mortgages on individual communities or groups of communities or borrowings under our Credit Facility or Commercial Paper Program. In addition, to the extent we have amounts outstanding under the Commercial Paper Program, we are obligated to repay the short-term indebtedness at maturity through either current cash on hand or by incurring other indebtedness, including by way of borrowing under our Credit Facility. Although we believe we will have the capacity to meet our currently anticipated liquidity needs, we cannot assure you that capital from additional debt financing or debt or equity offerings will be available or, if available, that they will be on terms we consider satisfactory.

Previous wording

(2)Balances outstanding represent total amounts due at maturity, and exclude deferred financing costs and debt discount for the unsecured notes of $42,194 and $43,848 as of March 31, 2024 and December 31, 2023, respectively, deferred financing costs and debt discount associated with secured notes of $17,777 and $18,372 as of March 31, 2024 and December 31, 2023, respectively, as reflected on our Condensed Consolidated Balance Sheets included elsewhere in this report.

Current wording

(2)Balances outstanding represent total amounts due at maturity, and exclude deferred financing costs and debt discount for the unsecured notes of $44,848 and $43,848 as of June 30, 2024 and December 31, 2023, respectively, deferred financing costs and debt discount associated with secured notes of $17,182 and $18,372 as of June 30, 2024 and December 31, 2023, respectively, as reflected on our Condensed Consolidated Balance Sheets included elsewhere in this report.