Cantor Fitzgerald reported on Friday that they have downgraded real estate investment trust (REIT), AvalonBay Communities, Inc. (AVB) to a “Hold”.
The firm has downgraded AVB from a “Buy” to a “Hold,” and has decreased the company’s price target from $157 to $142. This new price target suggests a 5% increase from the stock’s current price of $134.32.
An analyst from the firm commented, “the adjustments are predicated upon valuation changes: less development NPV (the biggest impact), a higher overall portfolio cap rate, and a lower applied premium. With the Archstone purchase, we also view the company as straying from its core strategy, a move we expect could impact overall portfolio value (e.g., a higher aggregate cap rate) and performance.”
AvalonBay is a REIT that focuses on the development, redevelopment, acquisition, and operation of apartment buildings in ten states in the US. AVB reported net income of $88.6 million, or 89 cents per share, and revenue of $271.9 million during its most recent quarter.AvalonBay Dividend In Focus
AvalonBay has paid out a quarterly dividend of 97 cents for the last three quarters. The company currently has a 2.85% dividend yield, and an annualized dividend of $3.88. There is an ex-dividend date of December 27 for this stock. The 97 cent dividend will be paid on January 15. (view the Dividend.com Ex-Dividend Tool for information on all upcoming ex-dividend dates).
Recent AvalonBay dividends include:
- September 26, 2012: $0.97
- June 29, 2012: $0.97
- March 28, 2012: $0.97
- December 28, 2011: $0.89
The company’s payout ratio has declined in the past three years, meaning the percentage of earnings AVB pays out in dividends is trending lower.
|Year||Dividend ($M)||Payout Ratio|
Dividend.com has put several companies in the same category as AVB, which are considered to be direct competition. These companies include Apartment Investment & Management Co (AIV), Equity Residential (EQR), and American Campus Communities (ACC). The chart below shows the dividend yield and DARS™ Rating of AVB’s competitors.
|AIV||Apartment Investment & Management||3.14%||3.3|
|ACC||American Campus Communities||3.03%||3.4|
Use the Dividend.com screener to see all dividend-paying consumer goods stocks, or run other custom searches for dividend-paying stocks.
AvalonBay shares were down -$1.66, or -1.22% during Friday morning trading. The stock is up 3.18% YTD.
AvalonBay Communities, Inc.(AVB) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.