Apartment REIT AvalonBay drops on pricing $710 mln stock deal

AvalonBay Communities,.

06/09/2024 12:50

** Shares of AvalonBay Communities  AVB.N  down 1.9% at
$222.20 premarket after overnight follow-on priced
     ** Arlington, Va-based apartment REIT late Thurs announced
3.2 mln shares as part of forward sale for deal size of ~$710.4
mln
    ** Offering priced at $222, 2% discount to stock's last sale
of $226.52
    ** Co entered into 15-mth forward sales agreements with
bookrunners Goldman Sachs, BofA, Deutsche Bank and Morgan
Stanley
    ** Upon settlement of agreements, co to use net proceeds for
land acquisitions, development/redevelopment and acquisitions of
apartment communities, and for other purposes including debt
repayment
    ** With ~142.22 mln shares outstanding, co has ~$32.2 bln
market cap
    ** Through Thurs, AVB up 21% YTD. Stock well outperforming
S&P 500 Real Estate sector's  .SPLRCR  8.6% advance and S&P
500's  .SPX  15.4% gain this year
    ** Avg rating among 21 analysts is "hold" and median PT is
$227, up from $213 a month ago, per LSEG data

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))