10 Best Residential REITs to Buy in 2025

4. AvalonBay Communities, Inc. (NYSE:AVB)

Number of Hedge Fund Holders: 32

AvalonBay Communities, Inc. (NYSE:AVB) is one of the best residential REITs to buy. On July 10, AVB finalized a public issuance of $400 million in 5.000% Senior Notes, maturing in 2035, as part of its long-term capital financing strategy.

The $400 million senior notes offering was executed under AvalonBay’s Form S-3 shelf registration, and the underwriting team consisted of Wells Fargo Securities, Barclays Capital, Scotia Capital, and Truist Securities, reflecting strong institutional backing.

AvalonBay’s notes have started earning interest from July 10, 2025, with payments made twice a year on February 1 and August 1, starting in 2026. The notes are set to mature on August 1, 2035, unless the company decides to pay them off earlier.

AvalonBay anticipates net proceeds of approximately $393.9 million from the offering, after deducting underwriting discounts and related expenses. The company has indicated that these funds will be allocated toward repayment of outstanding obligations under its commercial paper program, as well as investments in land acquisitions, residential projects, community acquisitions, structured investment program funding, and the repayment of existing debts. The funds may be held in cash or near-cash assets, or managed according to AvalonBay’s liquidity strategy, until they are allocated.

AvalonBay Communities, Inc. (NYSE:AVB) is an REIT that develops, acquires, and manages apartment communities across major US metropolitan cities.