Take What The Market Gives
Source: AvalonBay August 2019 Update
AvalonBay Communities (AVB) has always been on our radar but rarely in our sights. The reason? It typically trades with a sub-3% yield and price-to-Funds from Operations ("FFO") multiple well above 20x. It doesn't have the growth to support that elevated of a valuation based on our analysis. In summary: it's consistently too expensive.
In the rare event it does trade down, other REITs tend to offer better risk-adjusted returns. March of 2020, however, is no ordinary time. Even perfectly situated