Apartment REIT AvalonBay drops on stock offering launch

AvalonBay Communities,.

05/09/2024 22:12

** Shares of AvalonBay Communities  AVB.N  down 2% at $222
post-market after co commences stock offering
    ** Arlington, Va-based apartment REIT announces 3.2 mln
share offering
    ** Deal size would be ~$725 mln based on stock's last sale
on Thurs. AVB finished session down 0.3% at $226.52
    ** Co to enter into 15-mth forward sales agreements with
bookrunners Goldman Sachs, BofA, Deutsche Bank and Morgan
Stanley
    ** Upon settlement of such agreements, co plans to use net
proceeds for land acquisitions, development/redevelopment and
acquisitions of apartment communities, and for other uses
including debt repayment
    ** Co has ~142.22 mln shares outstanding for ~$32.1 bln
market cap
    ** Through Thurs, AVB up 21% YTD and well outperforming S&P
500 Real Estate sector's  .SPLRCR  8.6% advance and S&P 500's
 .SPX  15.4% gain

 (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))