Jana Galen

Jana Galen asked about AvalonBay's capital allocation strategy, specifically comparing future development projects with share repurchase activity.

Answer

Chief Investment Officer Matt Birenbaum detailed the company's strong balance sheet and flexible capital allocation, outlining a baseline of $1 billion in 2026 development starts in established regions with projected yields of 6.5% to high 6%. He noted the opportunity for share buybacks, as seen in Q3. CFO Kevin O'Shea later elaborated on the balance sheet strength and liquidity, confirming a reloaded $500 million share repurchase authorization and a nimble approach to capital deployment.

Jana Galen asked about AvalonBay's strategy for the next crop of development projects and the capital allocation decisions between new developments and share repurchases.

Answer

Matt Birenbaum, Chief Investment Officer, highlighted the strong balance sheet and a projected $1 billion in 2026 development starts, primarily in established regions, with attractive yields of 6.5% to high 6%. Kevin O'Shea, Chief Financial Officer, elaborated on the company's financial flexibility, including low leverage, $500 million in reauthorized share repurchase capacity, and the ability to fund buybacks through available liquidity and asset sales, emphasizing a nimble approach to capital allocation.