AVB is set to gain from healthy renter demand, strategic buyouts and technological enhancements. Yet, elevated supply and high interest expenses are concerns.
AVB is set to gain from the solid demand for high-quality assets in premium markets with portfolio diversification. The high supply of rental units is a concern.
The S&P 500 index (^GSPC 0.30%) average yield is just 1.2% today. You can do much better than that without too much effort.
We are currently maintaining our hold recommendation for AvalonBay. Our fair value estimate for the stock ranges from $210.36 to $219.73. AVB offers a potential total return of 5.26% as compared to 5.17% for their fixed-income instrument. The 9 bps premium for the equity is insufficient compensation in our view. In evaluating the apartment REIT sector dividend yield as compared to single-A corporate bond effective yield, we also see signs that the sector may be overvalued.
This Stock Deserves a Closer Look by Savvy Investors
Here is how AvalonBay Communities (AVB) and American Express (AXP) have performed compared to their sector so far this year.
AvalonBay Communities, Inc. (NYSE:AVB ) Q3 2024 Earnings Conference Call November 5, 2024 11:00 AM ET Company Participants Jason Reilley - Vice President, Investor Relations Benjamin Schall - Chief Executive Officer and President Kevin O'Shea - Chief Financial Officer Sean Breslin - Chief Operating Officer Matthew Birenbaum - Chief Investment Officer Conference Call Participants Eric Wolfe - Citi Jamie Feldman - Wells Fargo Adam Kramer - Morgan Stanley Steve Sakwa - Evercore ISI Austin Wurschmidt - KeyBanc Capital Markets Josh Dennerlein - Bank of America Brad Heffern - RBC Capital Markets John Kim - BMO Capital Markets Amy Provost - UBS Rich Anderson - Wedbush Alexander Goldfarb - Piper Sandler Haendel St. Juste - Mizuho Securities Linda Tsai - Jefferies Alexander Kim - Zelman & Associates Operator Good morning, ladies and gentlemen, and welcome to AvalonBay Communities Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Your host for today's call is Mr.
AVB's Q3 results reflect higher same-store residential revenues and a rise in average monthly revenue per occupied home.
Although the revenue and EPS for AvalonBay (AVB) give a sense of how its business performed in the quarter ended September 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
AvalonBay Communities (AVB) came out with quarterly funds from operations (FFO) of $2.74 per share, beating the Zacks Consensus Estimate of $2.71 per share. This compares to FFO of $2.66 per share a year ago.
AvalonBay's Q3 results are likely to show the benefits of its diversified portfolio and technological initiatives.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for AvalonBay (AVB), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended September 2024.