AvalonBay Communities, Inc. (AVB): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
Helped by growth in rental rates, AvalonBay's first-quarter 2014 core FFO came well ahead of the prior-year quarter figure and was in line with the Zacks Consensus Estimate. Improved results from its existing portfolio along with leasing from its developed communities have helped this residential REIT post encouraging quarterly results. Though excess utility and snow removal costs at its properties in the first quarter due to tough winters has lowered its same store NOI results. We believe that going forward, the company's FFO per share is expected to experience solid contribution from development deliveries. Moreover, favorable demographics along its markets keep us optimistic about its growth prospects. However, with a notable number of projects in the market nearing completion, we expect the supply to increase in the near term. This may temper the growth momentum of rents.

Overview:

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, a low supply of zoned apartment land, and lengthy and contentious entitlement processes. The company has a principal executive office in Arlington, VA, and number of regional offices, administrative offices or specialty offices in its markets.

As of Mar 31, 2014, AvalonBay owned or held a direct or indirect ownership interest in 276 apartment communities. These communities included 82,374 apartment homes in 12 states and the District of Columbia. Of the total communities, 31 were under construction and 5 under redevelopment as of that date.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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