AvalonBay Communities Inc

According to the University of Michigan, the consumer sentiment index for May 2017 gained 2.5% year-over-year, standing at 97.1%.

According to President Trump’s proposed budget for fiscal 2018, the administration is expected to slash $6 million from the U.S. Department of Housing and Urban Development budget, decreasing its funding by 13.2% to $40.7 billion.

There is wide anticipation in the market that the Federal Reserve could raise interest rates again during its upcoming meeting on June 14, 2017.

According to NHAB’s Housing Economics survey, housing starts are expected to rise 6.2% in 2017 and ~6.3% in 2018, backed by respective 9.6% and ~11.8% gains in single-family home sales.

AvalonBay’s 1Q17 revenues came in at ~$522.3 million and surpassed estimates by 0.3%.

In May 2017, 11 of 23 analysts covering AvalonBay Communities (AVB) stock issued “buy” or “strong buy” ratings. Eleven analysts gave AVB a “hold” rating, and one analyst gave it a “sell” or a “strong sell” rating.

AMT maintains non-cancellable long-term leases with an initial term of ten years. Almost 50% of the company’s leases have a renewal date of 2022 or beyond.

Zoning protects existing property values by preventing incompatible uses of a property. It also protects residential properties from commercial development.

As more and more people seek apartments, rent has also been rising rapidly. In fact, rent has been rising faster than the overall cost of living in the US.

Post Properties’ EV-to-EBITDA ratio is in line with its historical valuation, ranging between 12.2x–25.5x, with a current EV-to-EBITDA ratio of ~21.7x.

Post Properties’ TTM price-to-FFO multiple is in line with its historical valuation at around 18.9x.

Headquartered in Atlanta, Georgia, Post Properties is structured as an REIT and completed its initial public offering in 1993.

MAA’s EBITDA margin is lower than the industry average of 57.7%, as well as the margins reported by some of the company’s peers.

Camden Property Trust (CPT) is the fifth largest apartment REIT in the United States. At the end of fiscal 2014, it had 181 multifamily properties comprised of 63,163 apartment homes.

A close look at Essex Property Trust’s trailing-12-month price-to-FFO multiple shows that it’s in line with its historical valuation.

The most common way to calculate the relative value of a REIT like Equity Residential (EQR) is the price-to-FFO (funds from operations) multiple.

AvalonBay Communities’ brands focus on consumer preference as well as location and price. They help differentiate its apartments from the competition.

The distribution of properties in attractive US coastal markets reflects AvalonBay Communities’ geographic diversification strategy.

AvalonBay Communities is a REIT focused on developing, redeveloping, acquiring, and managing high-quality apartment communities in high barrier-to-entry US markets.

Equity Residential was formed as a REIT. It became a publicly traded company in 1993. It’s part of the S&P 500 Index. It employs about 3,500 people.