Jefferies Raises Its PT On AvalonBay Communities To $111

Management at AvalonBay Communities AVB has an outlook for 2011 that includes $800-$900M of new development starts and expected acquisitions of land for future developments, which would be in addition to the $879.5M of projects AVB had under development as of 4Q10. AVB's 2011 outlook also includes the disbursement of $600-$800M related to ongoing and new developments, as well as expected acquisitions of land for future development. While AVB continues to focus on developments as its primary source of external growth, Jefferies notes that AVB plans on being active in acquisitions in 2011. Specifically: AVB expects its JV Fund II to make acquisitions of $300-$500M in 2011; AVB expects its JV Fund I to make dispositions of $200M in 2011. Jefferies is revising its core 2011/2012 FFO/sh estimates to $4.57/$5.43, from $4.44/$5.42. Its adjustments reflect 4Q10 results, updated rental rate and occupancy forecasts, as well as revised acquisition, development, and financing assumptions in its model. Jefferies has a $111 PT and Hold rating on AVB AVB closed Monday at $116.09