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.
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.
AvalonBay Communities, Inc. (AVB): Read the Full
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AVALONBAY CMMTY (AVB): Free Stock Analysis
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