Why AvalonBay Communities Rallied 20% in November
Shares of real estate investment trust (REIT) AvalonBay Communities (NYSE: AVB) rose just shy of 20% in November, according to data from S&P Global Market Intelligence. Although that monthly gain is impressive, at the end of November the stock is still down by 20% for the year.
The big story, as is so often the case in 2020, is about the coronavirus pandemic. AvalonBay owns apartments in densely populated regions with high average incomes. That means its assets are located in and around large coastal cities. It is exactly these cities that are seeing an exodus because of fears surrounding COVID-19. To put a number on the impact this is having, AvalonBay's core funds from operations fell 12% year over year in the third quarter; this is why the stock has fallen so much this year.
Image source: Getty Images.
Source Fool.com
