Aided by growth in revenues, AvalonBay came up with encouraging
third-quarter 2014 results. FFO per share came in 6.5% ahead of the
Zacks Consensus Estimate and rose 81.4% from the prior-year quarter
figure. The performance of its newly developed and operating
communities remained the driver. Going forward, improving economy,
job growth and rising consumer confidence keep us optimistic on the
company's growth prospects. Also, we believe the company will
experience solid contribution from development deliveries.
Particularly, the West Coast is witnessing improved fundamentals
and healthier growth. Yet, completion of a number of projects in
the Metro DC area and modest job growth keeps the fundamentals of
this market challenged. Therefore, our Neutral recommendation on
the stock remains in place.
AvalonBay Communities, Inc. is a real estate investment trust
(REIT) primarily focusing on developing multifamily apartment
communities for higher-income clients in high barrier-to-entry
regions of the U.S. These markets include the New England, the New
York/New Jersey metro area, the Mid-Atlantic, the Pacific
Northwest, and the Northern and Southern California regions of the
U.S., typically characterized by dense population, low supply of
zoned apartment land, and lengthy, contentious entitlement
processes. The company has a principal executive office in
Arlington, VA, and a number of regional offices, administrative
offices or specialty offices in its markets.
As of Sep 30, 2014, AvalonBay owned or held a direct or indirect
ownership stake in 274 apartment communities. These communities
included 82,333 apartment homes in 11 states and the District of
Columbia. Of the total communities, 27 were under construction and
6 under redevelopment as of that date.
AvalonBay Communities, Inc. (AVB): Read the Full
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AVALONBAY CMMTY (AVB): Free Stock Analysis
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