AvalonBay Communities Inc AVB

Development Pipeline Drives Continued FFO Growth for AvalonBay Even as NOI Growth Slows

AvalonBay Communities owns and operates high-quality multifamily buildings in urban and suburban coastal markets with demographics that allow the company to maintain high occupancies and drive strong rent growth, specifically, New England, New York/New Jersey, the mid-Atlantic, Southern California, Northern California, and Seattle. These markets exhibit traits that create strong demand for apartments, such as job growth, income growth, decreasing homeownership rates, high relative cost of single-family housing, and attractive urban centers that attract younger people. The company regularly recycles capital by selling noncore assets or exiting markets and using the proceeds to fund its development pipeline or acquisitions with promising growth prospects, a sound strategy that continues to produce strong returns.