Apartment real estate investment trusts (REITs) like AvalonBay (NYSE: AVB) have lived through a very complex time period. The coronavirus pandemic upended normal business patterns first to the downside and then to the upside. Today there appears to be a mismatch between the performance of AvalonBay's business and its price, suggesting it might be worth buying for long-term investors.
Everyone needs a place to live, and that's exactly what AvalonBay offers across its nearly 300-building-strong portfolio. While it has exposure across the country, much of what it owns is focused around important coastal cities. That has, historically, been a very strong business model, since these areas witnessed year after year of demand growth. On top of that, the REIT has a penchant for keeping its portfolio modern and up to date, which allows it to charge top-tier rents.
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Source Fool.com