Should AvalonBay Communities Stock be Retained in Your Portfolio Now?

Zacks2024-12-19

AvalonBay Communities AVB is well-poised to gain from the healthy renter demand driven by favorable demographic trends and rising home ownership costs. The company’s efforts to leverage technology and...

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The company’s efforts to leverage technology and...</p>\n\n<a href=\"https://finance.yahoo.com/news/avalonbay-communities-stock-retained-portfolio-164800532.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Should AvalonBay Communities Stock be Retained in Your Portfolio Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nShould AvalonBay Communities Stock be Retained in Your Portfolio Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-19 00:48 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/avalonbay-communities-stock-retained-portfolio-164800532.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AvalonBay Communities AVB is well-poised to gain from the healthy renter demand driven by favorable demographic trends and rising home ownership costs. The company’s efforts to leverage technology and...</p>\n\n<a href=\"https://finance.yahoo.com/news/avalonbay-communities-stock-retained-portfolio-164800532.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4215","symbol_name":"住宅房地产投资信托","start_time":0,"source_url":"https://finance.yahoo.com/news/avalonbay-communities-stock-retained-portfolio-164800532.html","article_id":"2492613719","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Ev_tIU5ISpaQ5VhHtkljDQ--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/23c511afca431213fbe7b29620c075b2"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492613719","pubTimestamp":1734540480,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"AvalonBay CommunitiesAVB is well-poised to gain from the healthy renter demand driven by favorable demographic trends and rising home ownership costs. The company’s efforts to leverage technology and scale to drive operational efficiency seem encouraging.Strategic buyouts and development projects, backed by a healthy balance sheet position, augur well for long-term growth. However, the elevated supply of rental units in certain markets and high interest expenses add to its woes.AvalonBay mainly focuses on adding properties in the leading metropolitan areas. The market is characterized by growing employment in high-wage sectors of the economy, higher homeownership costs and a diverse and vibrant quality of life. This offers it an edge for generating superior long-term risk-adjusted returns on apartment community investments over the other markets that lack such characteristics. We expect year-over-year growth of 3.5% in the company’s same-store revenues in 2024.The struggle to lure rent","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4215":"住宅房地产投资信托","BK4194":"办公房地产投资信托","ELS":"宜居生活资产信托","BK4228":"单户式住宅房地产信托","BK4585":"ETF&股票定投概念","VRE":"Veris Residential","BK4588":"碎股","AVB":"阿湾物产"},"translate_title":"AvalonBay Communities股票现在应该保留在您的投资组合中吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AVB":1,"ELS":1,"VRE":1},"content_text":"AvalonBay Communities AVB is well-poised to gain from the healthy renter demand driven by favorable demographic trends and rising home ownership costs. The company’s efforts to leverage technology and scale to drive operational efficiency seem encouraging.\nStrategic buyouts and development projects, backed by a healthy balance sheet position, augur well for long-term growth. However, the elevated supply of rental units in certain markets and high interest expenses add to its woes.\nOver the past six months, shares of this residential REIT with Zacks Rank #3 (Hold) have gained 12.1%, outperforming the industry's upside of 6.3%. Analysts, too, seem bullish on it, with the Zacks Consensus Estimate for its 2024 funds from operations (FFO) per share being raised marginally over the past week to $11.04.\nImage Source: Zacks Investment Research\nWhat’s Aiding AvalonBay Communities?\nAvalonBay mainly focuses on adding properties in the leading metropolitan areas. The market is characterized by growing employment in high-wage sectors of the economy, higher homeownership costs and a diverse and vibrant quality of life. This offers it an edge for generating superior long-term risk-adjusted returns on apartment community investments over the other markets that lack such characteristics. We expect year-over-year growth of 3.5% in the company’s same-store revenues in 2024.\nAvalonBay is leveraging technology, scale and organizational capabilities to drive margin expansion in its portfolio. Such efforts are likely to bring about operational efficiency and reduce costs, aiding net operating income (NOI) growth. The company targets to achieve a $10 million incremental NOI for 2024.\nAvalonBay’s growth over the intermediate term is likely to be further supported by the increased development deliveries. In the first nine months of 2024, AvalonBay developed five wholly owned communities with 1,530 apartment units and 9,200 square feet of commercial space. In the next few years, the developments underway upon completion and stabilization are expected to fuel FFO and net asset value growth. We expect core FFO to increase by 3.7% year over year in 2024 and 4.5% in 2025.\nAvalonBay has a healthy balance sheet with ample liquidity, placing it well to capitalize on long-term growth opportunities. As of Sept. 30, 2024, the company had $552.4 million in unrestricted cash and cash equivalents and did not have any borrowings outstanding under its $2.25 billion unsecured credit facility. The company has a well-laddered debt maturity schedule with a weighted average year-to-maturity of seven years. In addition, in the third quarter of 2024, its annualized net debt-to-core EBITDAre was 4.2 times. For the nine months ended Sept. 30, 2024, unencumbered NOI was 95%, providing scope for tapping the additional secured debt capital if required.\nWhat’s Hurting AvalonBay Communities?\nThe struggle to lure renters will persist as supply volume is expected to remain elevated in some markets where the company operates. Also, the company faces competition from other housing alternatives, such as rental apartments, condominiums and single-family homes. Such a competitive landscape limits the company’s ability to increase rent, restricting its growth momentum to some extent. The like-term effective rent change in the third quarter of 2024 decreased to 3.2% from 3.7% reported in the year-ago period. We expect same-store average rental rates to increase by 2.5%, 2% and 1.6%, respectively, in the first three quarters of 2025.\nDespite the Federal Reserve announcing rate cuts in recent times, the interest rate is still high and is a concern for AvalonBay. AvalonBay has a substantial debt burden, and its total debt was approximately $8.4 billion as of Sept. 30, 2024. For 2024, we project a year-over-year rise of 10.1% in the company’s interest expenses.\nStocks to Consider\nSome better-ranked stocks from the residential REIT sector are Equity Lifestyle Properties ELS and Veris Residential VRE, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nThe Zacks Consensus Estimate for Equity Lifestyle Properties’ current-year FFO per share has been raised marginally over the past two months to $2.92.\nThe Zacks Consensus Estimate for Veris Residential’s current-year FFO per share has been raised marginally over the past two months to 58 cents.\nNote: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.\nWant 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\nAvalonBay Communities, Inc. (AVB) : Free Stock Analysis Report\nEquity Lifestyle Properties, Inc. (ELS) : Free Stock Analysis Report\nVeris Residential, Inc. (VRE) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492613719"}