Avalonbay Communities, Inc. (AVB) CEO Benjamin Schall on Q2 2022 Results - Earnings Call Transcript

Avalonbay Communities, Inc. (NYSE:AVB) Q2 2022 Earnings Conference Call July 28, 2022 1:00 PM ET

Company Participants

Jason Reilley - VP, IR

Benjamin Schall - President, CEO & Director

Sean Breslin - COO

Kevin O'Shea - CFO

Matthew Birenbaum - CIO

Conference Call Participants

Nicholas Joseph - Citigroup

Austin Wurschmidt - KeyBanc Capital Markets

Stephen Sakwa - Evercore ISI

Chandni Luthra - Goldman Sachs Group

Connor Mitchell - Piper Sandler & Co.

Bradley Heffern - RBC Capital Markets

Alan Peterson - Green Street Advisors

Richard Anderson - SMBC

Joshua Dennerlein - Bank of America Merrill Lynch

Adam Kramer - Morgan Stanley

Operator

Good morning, ladies and gentlemen, and welcome to AvalonBay Communities Second Quarter 2022 Earnings Conference Call. [Operator Instructions]. Your host for today's conference call is Mr. Jason Reilley, Vice President of Investor Relations. Mr. Reilley, you may begin your conference.

Jason Reilley

Thank you, Kyle, and welcome to AvalonBay Communities Second Quarter 2022 Earnings Conference Call. Before we begin, please note that forward-looking statements may be made during this discussion. There are a variety of risks and uncertainties associated with forward-looking statements, and actual results may differ materially. There is a discussion of these risks and uncertainties in yesterday afternoon's press release as well as in the company's Form 10-K and Form 10-Q filed with the SEC.

As usual, this press release does include an attachment with definitions and reconciliations of non-GAAP financial measures and other terms, which may be used in today's discussion. The attachment is also available on our website at www.avalonbay.com/earnings, and we encourage you to refer to this information during the review of our operating results and financial performance.

And with that, I will turn the call over to Ben Schall, CEO and President of AvalonBay Communities, for his remarks. Ben?

Benjamin Schall

Thank you, Jason, and thanks, everyone, for joining us today. Kevin, Sean and I will share some prepared remarks, and Matt is with us as well for Q&A. I'll start by discussing our financial and operating performance as well as our latest approaches to capital allocation.

On operations, we had a very strong second quarter with core FFO of $2.43 per share, exceeding our prior guidance by $0.12 per share or more than 5% above expectations. This magnitude of outperformance is atypical, particularly since we increased Q2 guidance at the end of April and was driven by continued asking rent growth, above-average occupancy and favorable net bad debt.