AvalonBay Communities
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As of December 31, 2018, the Company owned or held a direct or indirect ownership interest in 291 apartment communities containing 85,158 apartment homes in 12 states and the District of Columbia, of which 21 communities were under development and nine communities were under redevelopment. The last earnings update was 16 days ago. More info.
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AVB Share Price and Events
7 Day Returns
1 Year Returns
AVB Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| AvalonBay Communities (AVB) | 0.1% | 6.5% | 5.4% | 24.7% | 13.4% | 53.9% |
| US REITs | 0.5% | 6.3% | 5.6% | 15.2% | 17.2% | 26.7% |
| US Market | 1.4% | 5.6% | 5.7% | 2.3% | 44.2% | 40.9% |
1 Year Return vs Industry and Market
- AVB outperformed the REITs industry which returned 15.2% over the past year.
- AVB outperformed the Market in United States of America which returned 2.3% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
AvalonBay Communities
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for AvalonBay Communities.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations | |
| Levered Adjusted Funds From Operations | Average of 13 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 7.3% |
| REITs Unlevered Beta | Simply Wall St/ S&P Global | 0.55 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.554 (1 + (1- 21%) (26.25%)) |
0.668 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 7.27%) |
8.55% |
Discounted Cash Flow Calculation for NYSE:AVB using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model
The calculations below outline how an intrinsic value for AvalonBay Communities is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
AvalonBay Communities is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Adjusted Funds From Operations (AFFO) (USD, Millions) | 1,227.94 | 1,298.95 | 1,372.66 | 1,398.09 | 1,431.29 |
| Source | Analyst x10 | Analyst x9 | Analyst x3 | Analyst x1 | Analyst x1 |
|
Present Value Discounted (@ 8.55%) |
1,131.26 | 1,102.46 | 1,073.30 | 1,007.11 | 949.86 |
| Present value of next 5 years cash flows | $5,264.00 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $1,431.29 × (1 + 2.73%) ÷ (8.55% – 2.73%) |
$25,281.38 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $25,281.38 ÷ (1 + 8.55%)5 |
$16,777.67 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $5,264.00 + $16,777.67 |
$22,041.67 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $22,041.67 / 138.16 |
$161.03 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $161.03 |
| Current discount | Discount to share price of
$195.91
= -1 x ($195.91 - $161.03) / $161.03 |
-21.7% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of AvalonBay Communities is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for AvalonBay Communities's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
AvalonBay Communities's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $7.05 |
| NYSE:AVB Share Price ** | NYSE (2019-02-21) in USD | $195.91 |
| United States of America REITs Industry PE Ratio | Median Figure of 156 Publicly-Listed REITs Companies | 31.79x |
| United States of America Market PE Ratio | Median Figure of 3,045 Publicly-Listed Companies | 17.39x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of AvalonBay Communities.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:AVB Share Price ÷ EPS (both in USD) = 195.91 ÷ 7.05 |
27.79x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- AvalonBay Communities is good value based on earnings compared to the US REITs industry average.
- AvalonBay Communities is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
AvalonBay Communities's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 27.79x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts |
-8.4%per year |
| United States of America REITs Industry PEG Ratio | Median Figure of 141 Publicly-Listed REITs Companies | 0.87x |
| United States of America Market PEG Ratio | Median Figure of 2,118 Publicly-Listed Companies | 1.44x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 27.79x ÷ -8.4% |
-3.3x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- AvalonBay Communities earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
AvalonBay Communities's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $76.97 |
| NYSE:AVB Share Price * | NYSE (2019-02-21) in USD | $195.91 |
| United States of America REITs Industry PB Ratio | Median Figure of 192 Publicly-Listed REITs Companies | 1.79x |
| United States of America Market PB Ratio | Median Figure of 5,129 Publicly-Listed Companies | 1.87x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:AVB Share Price ÷ Book Value per Share (both in USD) = 195.91 ÷ 76.97 |
2.55x |
* Primary Listing of AvalonBay Communities.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- AvalonBay Communities is overvalued based on assets compared to the US REITs industry average.
Value checks
We assess AvalonBay Communities's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check) AvalonBay Communities has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- AvalonBay Communities's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
- AvalonBay Communities's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
- AvalonBay Communities's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:AVB Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts | -8.4% |
| NYSE:AVB Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts | 4% |
| United States of America REITs Industry Earnings Growth Rate | Market Cap Weighted Average | 0.3% |
| United States of America REITs Industry Revenue Growth Rate | Market Cap Weighted Average | 3.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 12.7% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 2,837 | 744 | 1 | |
| 2022-12-31 | 2,733 | 733 | 1 | |
| 2021-12-31 | 2,604 | 756 | 4 | |
| 2020-12-31 | 2,450 | 1,404 | 702 | 13 |
| 2019-12-31 | 2,348 | 1,312 | 672 | 10 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 2,289 | 975 | |
| 2018-09-30 | 2,225 | 1,304 | 824 |
| 2018-06-30 | 2,251 | 1,306 | 870 |
| 2018-03-31 | 2,221 | 1,272 | 780 |
| 2017-12-31 | 2,189 | 1,256 | 874 |
| 2017-09-30 | 2,144 | 1,233 | 879 |
| 2017-06-30 | 2,057 | 1,183 | 997 |
| 2017-03-31 | 2,055 | 1,182 | 1,029 |
| 2016-12-31 | 2,052 | 1,160 | 1,031 |
| 2016-09-30 | 2,033 | 1,123 | 945 |
| 2016-06-30 | 2,013 | 1,118 | 795 |
| 2016-03-31 | 1,955 | 1,098 | 770 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
All data from AvalonBay Communities Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 5.36 | 5.36 | 5.36 | 1.00 |
| 2022-12-31 | 5.28 | 5.28 | 5.28 | 1.00 |
| 2021-12-31 | 5.45 | 5.66 | 5.19 | 3.00 |
| 2020-12-31 | 5.04 | 5.22 | 4.90 | 8.00 |
| 2019-12-31 | 4.86 | 5.40 | 4.68 | 10.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 7.05 |
| 2018-09-30 | 5.98 |
| 2018-06-30 | 6.31 |
| 2018-03-31 | 5.67 |
| 2017-12-31 | 6.36 |
| 2017-09-30 | 6.40 |
| 2017-06-30 | 7.27 |
| 2017-03-31 | 7.51 |
| 2016-12-31 | 7.53 |
| 2016-09-30 | 6.90 |
| 2016-06-30 | 5.84 |
| 2016-03-31 | 5.71 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- AvalonBay Communities is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Future performance checks
We assess AvalonBay Communities's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
AvalonBay Communities has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has AvalonBay Communities performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- AvalonBay Communities's year on year earnings growth rate has been positive over the past 5 years.
- AvalonBay Communities's 1-year earnings growth is less than its 5-year average (11.4% vs 17.7%)
- AvalonBay Communities's earnings growth has not exceeded the US REITs industry average in the past year (11.4% vs 18.9%).
Earnings and Revenue History
All data from AvalonBay Communities Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 2,289.15 | 974.53 | 56.21 | |
| 2018-09-30 | 2,225.48 | 823.97 | 53.88 | |
| 2018-06-30 | 2,251.17 | 869.62 | 51.63 | |
| 2018-03-31 | 2,221.49 | 780.45 | 50.83 | |
| 2017-12-31 | 2,189.26 | 874.46 | 50.67 | |
| 2017-09-30 | 2,143.99 | 879.22 | 49.24 | |
| 2017-06-30 | 2,056.79 | 997.14 | 49.51 | |
| 2017-03-31 | 2,054.59 | 1,029.31 | 47.57 | |
| 2016-12-31 | 2,052.06 | 1,031.39 | 45.77 | |
| 2016-09-30 | 2,033.13 | 944.83 | 46.85 | |
| 2016-06-30 | 2,013.18 | 795.00 | 45.39 | |
| 2016-03-31 | 1,954.98 | 769.95 | 43.71 | |
| 2015-12-31 | 1,895.45 | 740.26 | 42.77 | |
| 2015-09-30 | 1,814.55 | 727.14 | 43.88 | |
| 2015-06-30 | 1,879.76 | 762.20 | 44.71 | |
| 2015-03-31 | 1,830.01 | 748.15 | 44.59 | |
| 2014-12-31 | 1,758.84 | 643.87 | 43.36 | |
| 2014-09-30 | 1,772.92 | 589.83 | 39.06 | |
| 2014-06-30 | 1,604.25 | 333.34 | 37.65 | |
| 2014-03-31 | 1,560.00 | 175.91 | 38.77 | |
| 2013-12-31 | 1,437.12 | 57.63 | 39.57 | |
| 2013-09-30 | 1,314.14 | 28.78 | 38.97 | |
| 2013-06-30 | 1,188.57 | 126.85 | 37.46 | |
| 2013-03-31 | 1,057.78 | 181.47 | 34.43 | |
| 2012-12-31 | 963.09 | 249.47 | 34.10 | |
| 2012-09-30 | 991.58 | 231.59 | 34.25 | |
| 2012-06-30 | 971.04 | 193.57 | 31.96 | |
| 2012-03-31 | 960.53 | 173.84 | 31.79 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- AvalonBay Communities has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- AvalonBay Communities used its assets more efficiently than the US REITs industry average last year based on Return on Assets.
- AvalonBay Communities has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess AvalonBay Communities's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
AvalonBay Communities has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is AvalonBay Communities's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up AvalonBay Communities's finances.
The net worth of a company is the difference between its assets and liabilities.
- AvalonBay Communities's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- AvalonBay Communities's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from AvalonBay Communities Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 10,635.85 | 7,040.26 | 91.66 |
| 2018-09-30 | 10,403.48 | 7,533.23 | 55.89 |
| 2018-06-30 | 10,404.20 | 7,571.28 | 101.57 |
| 2018-03-31 | 10,341.08 | 7,599.46 | 137.24 |
| 2017-12-31 | 10,394.10 | 7,349.59 | 67.09 |
| 2017-09-30 | 10,342.55 | 7,128.03 | 36.04 |
| 2017-06-30 | 10,291.25 | 6,991.76 | 53.48 |
| 2017-03-31 | 10,275.40 | 7,005.73 | 121.71 |
| 2016-12-31 | 10,179.18 | 7,030.88 | 214.99 |
| 2016-09-30 | 10,046.57 | 6,815.97 | 65.90 |
| 2016-06-30 | 9,866.49 | 6,833.99 | 182.31 |
| 2016-03-31 | 9,856.66 | 6,502.58 | 97.54 |
| 2015-12-31 | 9,850.52 | 6,456.95 | 400.51 |
| 2015-09-30 | 9,839.97 | 6,306.73 | 318.56 |
| 2015-06-30 | 9,221.07 | 6,487.13 | 65.13 |
| 2015-03-31 | 9,108.02 | 6,562.33 | 194.93 |
| 2014-12-31 | 9,059.17 | 6,489.71 | 509.46 |
| 2014-09-30 | 9,057.88 | 6,241.77 | 440.03 |
| 2014-06-30 | 8,837.62 | 6,254.87 | 425.74 |
| 2014-03-31 | 8,623.07 | 6,381.80 | 386.19 |
| 2013-12-31 | 8,617.05 | 6,134.35 | 281.36 |
| 2013-09-30 | 8,491.59 | 6,112.63 | 112.91 |
| 2013-06-30 | 8,583.28 | 5,853.32 | 111.15 |
| 2013-03-31 | 8,679.66 | 5,928.29 | 447.46 |
| 2012-12-31 | 6,847.82 | 3,904.52 | 2,733.62 |
| 2012-09-30 | 4,728.08 | 3,877.39 | 664.13 |
| 2012-06-30 | 4,589.56 | 3,464.61 | 358.26 |
| 2012-03-31 | 4,397.47 | 3,454.75 | 248.24 |
- AvalonBay Communities's level of debt (66.2%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (71.2% vs 66.2% today).
- Debt is not well covered by operating cash flow (18.5%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).
Financial health checks
We assess AvalonBay Communities's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) AvalonBay Communities has a total score of 2/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is AvalonBay Communities's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
AvalonBay Communities
shares you are expected to receive
$62
in your first year as a dividend.
Dividend Amount
- AvalonBay Communities's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
- AvalonBay Communities's dividend is below the markets top 25% of dividend payers in United States of America (3.54%).
Upcoming dividend payment
Purchase AvalonBay Communities on or before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| United States of America REITs Industry Average Dividend Yield | Market Cap Weighted Average of 185 Stocks | 4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2001 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.5% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 7.27 | 2.00 |
| 2022-12-31 | 7.02 | 2.00 |
| 2021-12-31 | 6.70 | 5.00 |
| 2020-12-31 | 6.34 | 14.00 |
| 2019-12-31 | 6.09 | 13.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-04 | 6.080 | 3.121 |
| 2018-09-18 | 5.880 | 3.251 |
| 2018-05-23 | 5.880 | 3.371 |
| 2018-01-31 | 5.880 | 3.634 |
| 2017-11-09 | 5.680 | 3.194 |
| 2017-09-14 | 5.680 | 3.141 |
| 2017-05-18 | 5.680 | 2.980 |
| 2017-02-01 | 5.680 | 3.080 |
| 2016-11-10 | 5.400 | 3.161 |
| 2016-09-12 | 5.400 | 3.147 |
| 2016-05-19 | 5.400 | 3.025 |
| 2016-02-03 | 5.400 | 3.003 |
| 2015-11-12 | 5.000 | 2.809 |
| 2015-09-02 | 5.000 | 2.877 |
| 2015-05-22 | 5.000 | 2.984 |
| 2015-01-28 | 5.000 | 2.935 |
| 2014-11-19 | 4.640 | 2.775 |
| 2014-09-04 | 4.640 | 3.097 |
| 2014-05-21 | 4.640 | 3.180 |
| 2014-01-29 | 4.640 | 3.524 |
| 2013-11-20 | 4.280 | 3.577 |
| 2013-09-10 | 4.280 | 3.363 |
| 2013-05-22 | 4.280 | 3.224 |
| 2013-01-30 | 4.280 | 3.288 |
| 2012-11-08 | 3.880 | 2.893 |
| 2012-09-07 | 3.880 | 2.840 |
| 2012-05-23 | 3.880 | 2.727 |
| 2012-02-01 | 3.880 | 2.794 |
| 2011-11-15 | 3.570 | 2.812 |
| 2011-09-15 | 3.570 | 2.900 |
| 2011-05-12 | 3.570 | 2.727 |
| 2011-02-16 | 3.570 | 2.982 |
| 2010-12-08 | 3.570 | 3.167 |
| 2010-09-07 | 3.570 | 3.282 |
| 2010-05-19 | 3.570 | 3.551 |
| 2010-05-05 | 3.570 | 3.522 |
| 2010-04-28 | 3.570 | 3.398 |
| 2009-12-14 | 3.570 | 4.285 |
| 2009-09-16 | 3.570 | 4.913 |
| 2009-05-21 | 3.570 | 5.928 |
| 2009-02-24 | 3.570 | 7.052 |
| 2009-02-23 | 3.570 | 8.322 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
AvalonBay Communities's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.5x coverage).
- Dividends after 3 years are expected to be thoroughly covered by earnings (213.2x coverage).
Income/ dividend checks
We assess AvalonBay Communities's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can AvalonBay Communities afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) AvalonBay Communities has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $7,893,827 |
| AGE | 57 |
| TENURE AS CEO | 7.1 years |
CEO Bio
Mr. Timothy J. Naughton, also known as Tim, has been the Chief Executive Officer of AvalonBay Communities Inc. since January 1, 2012 and has been its President since February 23, 2015. Mr. Naughton serves as an Officer of the National Association of Real Estate Investment Trusts. Mr. Naughton has over 20 years of experience in the REIT and commercial real estate sectors. Previously, he served as the President at AvalonBay Communities Inc. since February 23, 2005 and was responsible for the performance and coordination of various activities, including development, redevelopment, construction, acquisitions, dispositions, asset management and property operations. Mr. Naughton served as the Chief Operating Officer at AvalonBay Communities Inc. since February 2001 and served as its Chief Investment Officer and Senior Vice President since January 2000. He also served as Regional Vice President of Development and Acquisitions at AvalonBay Communities Inc., with responsibility primarily in the Mid-Atlantic and Midwest regions of the country. He was responsible for the performance and coordination of development, construction, acquisitions, dispositions and property operations. Since August 1993, he served as a Vice President of Development at Avalon Properties Inc., with the responsibility for the Virginia and Maryland markets. He joined the Mid-Atlantic Group of TCR in 1989 and had development responsibilities for multifamily rental communities in Delaware, Virginia and Maryland. Mr. Naughton was a Development Partner at the Mid-Atlantic Group of TCR from 1989 to 1993. From 1987 to 1989, he served as a Development Officer at Bourque/Perez Group in Lexington, Massachusetts, where he directed the development of townhouses and multifamily communities. Mr. Naughton has been Chairman of AvalonBay Communities Inc. since May 22, 2013 and has been its Director since September 1, 2005. He has been a Director of Park Hotels & Resorts Inc. since January 04, 2017. He has been an Independent Director of Welltower Inc. since December 18, 2013. He serves as a Member of National Multi Housing Council, where he serves on the Executive Committee. Mr. Naughton serves on the Board of Governors of National Association of Real Estate Investment Trusts. He was the Chairman of the Multifamily Council of the Urban Land Institute. He serves as a Member of the Real Estate Round Table and the Multifamily Council of the Urban Land Institute. Mr. Naughton holds an Masters of Business Administration from Harvard Business School in 1987 and a B.A. in Economics from the University of Virginia in 1983, where he graduated with High Distinction and was elected to Phi Beta Kappa.
CEO Compensation
- Tim's compensation has been consistent with company performance over the past year.
- Tim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the AvalonBay Communities management team in years:
- The average tenure for the AvalonBay Communities management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Tim Naughton
Chairman
$8M
57
7.1 yrs
Kevin O'Shea
Chief Financial Officer
$3M
52
4.7 yrs
Sean Breslin
Chief Operating Officer
$3M
51
4.1 yrs
Matt Birenbaum
Chief Investment Officer
$3M
52
4.1 yrs
Steve Wilson
Executive Vice President of Development - West Coast & Mid-Atlantic
$2M
61
9 yrs
Keri Shea
Senior VP of Finance
48
9.6 yrs
Leo Horey
Chief Administrative Officer
$3M
55
6.8 yrs
Jason Reilley
Vice President of Investor Relations
Edward Schulman
Executive VP
$1M
55
20 yrs
Kurt Conway
Senior Vice President of Brand Strategy & Marketing
58
8.5 yrs
Board of Directors Tenure
Average tenure and age of the AvalonBay Communities board of directors in years:
- The tenure for the AvalonBay Communities board of directors is about average.
Board of Directors
Tim Naughton
Chairman
$8M
57
5.8 yrs
H. Sarles
Lead Independent Director
$250K
73
3.8 yrs
Ed Walter
Director
$225K
62
10.4 yrs
Alan Buckelew
Director
$225K
69
7.4 yrs
Glyn Aeppel
Director
$223K
59
5.8 yrs
Peter Rummell
Director
$210K
72
11.4 yrs
Ron Havner
Director
$210K
60
4.4 yrs
Terry Brown
Director
$210K
56
4.1 yrs
Susan Swanezy
Director
$210K
59
2.4 yrs
Richard Lieb
Director
$210K
58
2.4 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 06. Dec 18 | Sell | Sean Breslin | Individual | 06. Dec 18 | 06. Dec 18 | -39 | $188.50 | $-7,352 | ||
| 27. Nov 18 | Sell | Stephen Wilson | Individual | 26. Nov 18 | 26. Nov 18 | -2,905 | $185.89 | $-540,010 | ||
| 21. Nov 18 | Sell | Leo Horey | Individual | 19. Nov 18 | 19. Nov 18 | -2,000 | $186.88 | $-373,760 | ||
| 21. Nov 18 | Sell | Keri Shea | Individual | 19. Nov 18 | 19. Nov 18 | -1,880 | $185.10 | $-347,983 | ||
| 20. Nov 18 | Sell | Edward Schulman | Individual | 16. Nov 18 | 16. Nov 18 | -1,400 | $183.76 | $-257,264 | ||
| 09. Nov 18 | Sell | Kevin O'Shea | Individual | 07. Nov 18 | 07. Nov 18 | -1,000 | $182.24 | $-182,240 | ||
| 07. Nov 18 | Sell | Kevin O'Shea | Individual | 06. Nov 18 | 06. Nov 18 | -1,500 | $179.51 | $-269,265 | ||
| 28. Aug 18 | Sell | Sean Breslin | Individual | 24. Aug 18 | 24. Aug 18 | -4,200 | $182.20 | $-765,240 | ||
| 06. Aug 18 | Sell | Kevin O'Shea | Individual | 03. Aug 18 | 03. Aug 18 | -2,000 | $179.85 | $-359,691 | ||
Management checks
We assess AvalonBay Communities's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) AvalonBay Communities has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Have Insiders Been Selling AvalonBay Communities, Inc. (NYSE:AVB) Shares?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So we know that an insider sold shares at around the present share price of US$178
Simply Wall St - – Full articleWill AvalonBay Communities, Inc.'s (NYSE:AVB) Earnings Grow In Next 12 Months?
(NYSE:AVB) released its earnings in September 2018, … the consensus outlook from analysts appear … with earnings expected to decline by -17% in the upcoming year
Simply Wall St - – Full articleWhy You Shouldn't Look At AvalonBay Communities Inc's (NYSE:AVB) Bottom Line
real estate investment trust (REIT) based in Arlington, United States. … REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities … These items can distort the bottom line and not necessarily reflective of AVB’s daily operations
Simply Wall St - – Full articleHow Much Did AvalonBay Communities Inc's (NYSE:AVB) CEO Pocket Last Year?
First, this article will compare CEO compensation with compensation at other large companies. … At the time of writing our data says that AvalonBay Communities Inc has a market cap of US$24.2b, and is paying total annual CEO compensation of US$8m. … When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m.
Simply Wall St - – Full articleWith An ROE Of 8.4%, Has AvalonBay Communities Inc's (NYSE:AVB) Management Done Well?
Our data shows AvalonBay Communities has a return on equity of 8.4% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.084 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleInvesting In AvalonBay Communities Inc (NYSE:AVB): What You Need To Know
real estate investment trust (REIT) based in Arlington, United States. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company. … They have to meet certain requirements in order to become a REIT, meaning they should be analyzed a different way.
Simply Wall St - – Full article1 Days Left To Cash In On AvalonBay Communities Inc (NYSE:AVB) Dividend, Is It Worth Buying?
Important news for shareholders and potential investors in AvalonBay Communities Inc (NYSE:AVB): The dividend payment of US$1.47 per share will be distributed into shareholder on 16 July 2018, and the stock will begin trading ex-dividend at an earlier date, 28 June 2018. … Is this future income a persuasive enough catalyst for investors to think about AvalonBay Communities as an investment today? … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Simply Wall St - – Full articleHow Should Investors Feel About AvalonBay Communities Inc's (NYSE:AVB) CEO Pay?
Performance can be measured based on factors such as earnings and total shareholder return (TSR). … I believe earnings is a cleaner proxy, since many factors can impact share price, and therefore, TSR. … Based on AVB's size and performance, in terms of market cap and earnings, it appears that Naughton is paid in-line with the average US large-cap CEO This may mean that AVB is appropriately compensating its CEO.
Simply Wall St - – Full articleWhat Kind Of Risk Should You Expect For AvalonBay Communities Inc (NYSE:AVB)?
AVB's beta implies it may be a stock that investors with high-beta portfolios might find relevant if they wanted to reduce their exposure to market risk, especially during times of downturns. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive. … Thus, we can expect AVB to be more volatile in the face of market movements, relative to its peers of similar size but with a lower proportion of fixed assets on their books.
Simply Wall St - – Full articleShould You Be Concerned About AvalonBay Communities Inc's (NYSE:AVB) Shareholders?
See our latest analysis for AvalonBay Communities NYSE:AVB Ownership_summary May 11th 18 Institutional Ownership AVB's 97.51% institutional ownership seems enough to cause large share price movements in the case of significant share sell-off or acquisitions by institutions, particularly when there is a low level of public shares available on the market to trade. … Insider Ownership Another important group of shareholders are company insiders. … Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.
Simply Wall St - – Full articleCompany Info
Map
Description
As of December 31, 2018, the Company owned or held a direct or indirect ownership interest in 291 apartment communities containing 85,158 apartment homes in 12 states and the District of Columbia, of which 21 communities were under development and nine communities were under redevelopment. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas primarily in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and the Northern and Southern California regions of the United States.
Details
| Name: | AvalonBay Communities, Inc. |
| AVB | |
| Exchange: | NYSE |
| Founded: | 1978 |
| $26,816,185,384 | |
| $26,814,729,634 | |
| 138,156,545 | |
| Website: | http://www.avalonbay.com |
| Address: |
AvalonBay Communities, Inc. Ballston Tower, Suite 800, Arlington, Virginia, 22203, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | AVB | Common Stock | New York Stock Exchange | US | USD | 11. Mar 1994 | |
| DB | WV8 | Common Stock | Deutsche Boerse AG | DE | EUR | 11. Mar 1994 | |
| LSE | 0HJO | Common Stock | London Stock Exchange | GB | USD | 11. Mar 1994 |
Number of employees
Current staff
Industry
| Residential REITs | |
| Real Estate |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/02/21 23:33 |
| End of day share price update: | 2019/02/21 00:00 |
| Last estimates confirmation: | 2019/02/21 |
| Last earnings filing: | 2019/02/05 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
