In part 2 of our 5 part series, Dividend.com analyzes AvalonBay (AVB ) where George Soros holds 18,121 shares, which equates to a stake of $3.1 million. That almost equals the stake he has in Equity Residential (EQR ), which we analyzed in Part 1 of this series. You can read Part 3 here and Part 4 here.
AvalonBay is an S&P 500 Company classified as a Multi-Family REIT that primarily owns or holds an indirect ownership in 282 apartment communities that contain 82,851 apartments on both the west and the east coasts of the U.S.
AvalonBay operates in areas which have an insufficient supply. Completions as a percentage of existing stock of homes in the past 20 years is 0.8% in AVB markets as against the U.S. top 50 metro average of 1.4%. It’s also accompanied by higher cost of ownership and higher household incomes in AVB markets vs the U.S. average. Unlike Equity Residential which targets only lifestyle seekers, AVB targets lifestyle seekers as well as value seekers.
All key macroeconomic factors like unemployment rates, job growth and a rising interest rate are positives for REITS in general. AvalonBay’s occupancy rate is 95.4%. They were more than 96.5% in 2Q13.