5 Best REIT Stocks To Buy Right Now

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

Number of Hedge Fund Holders: 36

AvalonBay Communities, Inc. (NYSE:AVB) is a residential real estate investment trust that focuses on acquiring, developing and operating apartment communities across the United States. It owns more than 86,000 apartment homes across 11 states, making it the third largest apartment owner in the US.

In early March, AvalonBay Communities, Inc. (NYSE:AVB) reported year-on-year growth of 7.3% in same store residential rental revenue for first two months of 2022. This growth stood 60 basis points above the firm’s expectations. The firm also announced the establishment of a $500 million unsecured commercial paper note program in the United States, proceeds from which will be used for general corporate purposes.

On March 24, Deutsche Bank analyst Derek Johnston maintained a ‘Buy’ rating on AvalonBay Communities, Inc. (NYSE:AVB) shares, and lowered the price target to $272 from $285. Truist analyst Michael Lewis in March gave AvalonBay a ‘Hold’ rating, noting that he expects the REIT to generate 15% FFO per share growth in 2022, and 9% in 2023. He sees stock valuations across the apartment REIT sector going up, reflecting the sector’s strong earnings growth and low property cap rates.

Investors were seen buying up on AvalonBay Communities, Inc. (NYSE:AVB) in the fourth quarter of 2021, where 36 hedge funds were long on the company shares. In contrast, 28 hedge funds were holding shares in the REIT a quarter ago. Zimmer Partners held roughly 918,000 shares worth $231.75 million of AvalonBay Communities, Inc. (NYSE:AVB) in Q4 2021, making it the biggest shareholder of the firm.