AvalonBay Communities (AVB) delivered another solid quarter in its Q2 2019 results. The REIT should continue to benefit from demographic trends, and favorable supply and demand dynamics in its key markets. AvalonBay also has a robust development pipeline that will expand its portfolio of apartment units by 11.7% in the next few years. The REIT has a strong balance sheet as well. The REIT is a fine choice for investors seeking a stable and steadily growing dividend income. However, its shares are not cheap right now. Therefore, investors may want to wait for a pullback before initiating a position.

AvalonBay delivered positive top and bottom line growth in its Q2 2019 earnings. In the quarter, the REIT saw its core funds from operations grew to $2.27 per share. This was better than last year’s $2.23 per share. The increase was primarily driven by growth in its net operating income from new and existing communities. Its NOI in the same-store portfolio grew by 2.8%. Its occupancy rate improved slightly to 96.1% in Q2 2019 from 96.0% in Q2 2018.

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