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AvalonBay Communities Inc AVB

Morningstar Rating
$178.14 +1.11 (0.63%)
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Company Report

Despite Slowing Revenue Growth in 2024, Long-Term Apartment Demand Should Support Avalonbay's Growth

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 like job growth, income growth, decreasing homeownership rates, high relative cost of single-family housing, and attractive urban centers that draw younger people. The company regularly recycles capital by selling noncore assets or exiting markets and using the proceeds for its development pipeline or acquisitions with promising growth prospects, a sound strategy that continues to produce strong returns.

Price vs Fair Value

AVB is trading at a 16% discount.
Price
$178.14
Fair Value
$483.00
Uncertainty
Medium
1-Star Price
$219.29
5-Star Price
$596.60
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

AvalonBay has a history of finding accretive development opportunities to bolster its growth prospects.

Bears

The pandemic has made many millennials consider alternatives to urban apartments, including suburban apartments and single-family homeownership. This demographic has put off many major adult milestones but may finally be making the shift toward the suburbs.

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News

Trading Information

Previous Close Price
$177.03
Day Range
$174.46178.49
52-Week Range
$153.07198.66
Bid/Ask
$168.09 / $180.08
Market Cap
$25.30 Bil
Volume/Avg
832,846 / 892,174

Key Statistics

Price/Earnings (Normalized)
36.35
Price/Sales
9.12
Dividend Yield (Trailing)
3.71%
Dividend Yield (Forward)
3.82%
Total Yield
3.71%

Company Profile

AvalonBay Communities owns a portfolio of 281 apartment communities with over 87,000 units and is developing 18 additional properties with over 6,200 units. The company focuses on owning large, high-quality properties in major metropolitan areas of New England, New York/New Jersey, Washington D.C., California, and the Pacific Northwest.
Sector
Real Estate
Industry
REIT - Residential
Stock Style Box
Mid Value
Total Number of Employees
3,039

Competitors

Valuation

Metric
AVB
AIRC
ESS
Price/Earnings (Normalized)
36.357.1041.72
Price/Book Value
2.151.902.77
Price/Sales
9.125.659.02
Price/Cash Flow
16.3611.6715.34
Price/Earnings
AVB
AIRC
ESS

Financial Strength

Metric
AVB
AIRC
ESS
Quick Ratio
0.570.461.85
Current Ratio
0.760.531.88
Interest Coverage
5.566.272.81
Quick Ratio
AVB
AIRC
ESS

Profitability

Metric
AVB
AIRC
ESS
Return on Assets (Normalized)
4.86%10.92%3.10%
Return on Equity (Normalized)
8.64%31.64%6.87%
Return on Invested Capital (Normalized)
6.08%13.79%4.33%
Return on Assets
AVB
AIRC
ESS
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REIT - Residential Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
EQR
Equity ResidentialShjh$23.1 Bil
INVH
Invitation Homes IncCzmr$21.1 Bil
SUI
Sun Communities IncSjcrg$16.5 Bil
ESS
Essex Property Trust IncKml$15.0 Bil
MAA
Mid-America Apartment Communities IncPtd$14.9 Bil
AMH
American Homes 4 Rent Class ARdbh$13.5 Bil
ELS
Equity Lifestyle Properties IncNpzyc$12.5 Bil
UDR
UDR IncVrn$11.8 Bil
AIRC
Apartment Income REIT Corp Class ASfy$4.5 Bil

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