AvalonBay Communities

Management prioritizes high‑return development and disciplined acquisitions/dispositions to recycle capital. As of Q2 2025, AVB had 20 wholly owned development communities under construction, representing $2.78 billion of total capital cost, along with incremental starts in Florida and North Carolina and an expansion in Pleasanton, CA.

The company also pursues a measured Structured Investment Program (SIP) lending to third‑party developers at an 11.6% weighted‑average return, providing fee‑like income with collateral protection. Dividend growth continued in 2025 to $1.75 per quarter.

Equity issuance has been prudent but present: 2024 forward equity (~3.68 million shares) settling by end‑2025 modestly dilutes per‑share growth, though raised proceeds fund development at attractive risk‑adjusted returns.

Overall, reinvestment discipline is solid, with sensible use of CP, term loan hedges and long‑dated notes to balance cost of capital and project timing.