Avalonbay Communities Inc (NYSE: AVB)

AvalonBay Communities, Inc. is a Maryland corporation that has elected to be treated as a real estate investment trust for federal income tax purposes. The company develops, redevelops, acquires, owns and operates apartment communities in New England, the New York/New Jersey metro area, the Mid Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in expansion regions such as Raleigh Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. It focuses on leading metropolitan areas where it believes long term risk adjusted returns on apartment investments are attractive relative to other markets.

AvalonBay Communities, Inc. generates revenue principally from rental payments received from residents of its apartment communities. The company also earns income from property management services, from its Structured Investment Program that provides mezzanine loans or preferred equity to third party developers, and from leasing commercial space located at its properties. Additional revenue may arise from the sale of properties that no longer fit its long term strategy and from ancillary resident services offered through its taxable REIT subsidiary.

AvalonBay Communities, Inc. is one of the largest owners and operators of multifamily rental housing in the United States. It competes with other real estate investment trusts such as Equity Residential, UDR, Inc., Essex Property Trust, Inc., and faces competition from private equity funds, pension funds, and sovereign wealth funds that also seek to acquire and develop apartment communities. The company's competitive advantages include its integrated development and operating platforms, its in house construction expertise, its diversified brand portfolio that targets different renter segments, and its focus on markets with strong employment growth and high barriers to home ownership.

The company serves a broad base of residential renters that includes individuals, families, and professionals seeking housing in major metropolitan areas. Its apartment communities attract residents who value proximity to employment centers, transportation, shopping, dining, and recreational amenities. While AvalonBay Communities, Inc. does not disclose individual tenant names, its customer base consists primarily of households looking for rental homes in the markets where it operates.