AVB - Embedded Expectations Analysis - 2021 06 09
AvalonBay Communities, Inc. (AVB:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 65.2x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about workspace trends, tenant evictions, and lingering pandemic headwindsSpecifically, management may have concerns about the sustainability of heightened net effective ask rents, maintenance expense normalization, and the need to add workspaces to their communities. Furthermore, they may lack confidence in their ability to capitalize on single-family market tailwinds and lease the remaining retail space in Park Loggia, and they may also be overstating the potential of their development rights pipeline. Finally, they may be concerned about potential increases in evictions, the progress of federal funds applications, and the impact of the pandemic on their margins
AvalonBay Communities is a real estate investment trust. The company develops, redevelops, acquires, owns and operates multifamily communities primarily in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. The company owns or holds a direct or indirect ownership interest in: operating apartment communities containing apartment homes in various states and the District of Columbia; communities under development; and rights to develop an additional communities.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.