Aided by growth in rental rates, AvalonBay's second-quarter 2014
FFO came in 3% ahead of the Zacks Consensus Estimate and rose 10.3%
from the prior-year quarter figure. Improved performance of its
newly developed and acquired communities has helped this
residential REIT to post encouraging quarterly results. Going
forward, improving economy, job growth, rising consumer confidence
and favorable demographics along its markets keep us optimistic
about the company's growth prospects. 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, we retain our Neutral recommendation on the stock.
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 Jun 30, 2014, AvalonBay owned or held a direct or indirect
ownership stake in 275 apartment communities. These communities
included 82,348 apartment homes in 11 states and the District of
Columbia. Of the total communities, 32 were under construction and
6 under redevelopment as of that date.
AvalonBay Communities, Inc. (AVB): Read the Full
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
AVALONBAY CMMTY (AVB): Free Stock Analysis
To read this article on Zacks.com click here.