Benjamin Schall, CEO and president of AvalonBay Communities Inc. (NYSE: AVB), sat down for a video interview at Nareit’s REITweek: 2024 Investor Conference, held in New York from June 3-6.
Schall highlighted the company's robust performance and strategic initiatives for 2024. He noted that AvalonBay's operating results and momentum had exceeded expectations, leading to increased guidance and projected sector-leading revenue growth.
On the demand side, Schall emphasized strong job growth among college-educated workers and the significant cost disparity between renting and owning homes, particularly in AvalonBay's markets, where owning a home is $2,000 per month more expensive than renting. This has led to lower turnover rates and sustained demand for their apartments.
AvalonBay benefits from less new supply in suburban coastal markets, which comprises 70% of their portfolio, contributing to their strong performance: "East Coast markets are generally outperforming the West Coast, and both are outperforming Sunbelt markets,” he added.
Looking ahead, Schall outlined key strategic initiatives, including investments in operating model enhancements through technology and centralized services, aiming to deliver more value to residents and drive operational efficiencies. He also highlighted their development platform, with projects yielding higher than expected returns and new investment programs providing capital to third-party developers.