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AvalonBay Trims Its Sails on Construction Outlook
AvalonBay’s near-term development outlook has been clouded by the national emergency surrounding the coronavirus. Of the 22 projects the Arlington, VA-based multifamily REIT had under construction at the end of 2019, three have been completed, four have been suspended and progress on the remaining 15 has been slowed by safety precautions.
Furthermore, AvalonBay hasn’t launched any new development in 2020, and will evaluate future starts on an individual basis, based on evolving economic and market conditions. In addition, the company said it had begun taking action “to substantially reduce redevelopment and other non-essential capex investment.”
Due to the “inherent uncertainty surrounding the social and economic disruption from this national emergency,” the REIT has withdrawn its full-year 2020 outlook, which was included in its earnings release last month. It doesn’t plan to provide an update to the FY2020 outlook “until there is further clarity on economic conditions.”
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- ◦Development
