Apartment REIT AvalonBay drops on pricing $710 mln stock deal
** Shares of AvalonBay Communities AVB.N down 1.9% at $222.20 premarket after overnight follow-on priced
** Arlington, Va-based apartment REIT late Thurs announced 3.2 mln shares as part of forward sale for deal size of ~$710.4 mln
** Offering priced at $222, 2% discount to stock's last sale of $226.52
** Co entered into 15-mth forward sales agreements with bookrunners Goldman Sachs, BofA, Deutsche Bank and Morgan Stanley
** Upon settlement of agreements, co to use net proceeds for land acquisitions, development/redevelopment and acquisitions of apartment communities, and for other purposes including debt repayment
** With ~142.22 mln shares outstanding, co has ~$32.2 bln market cap
** Through Thurs, AVB up 21% YTD. Stock well outperforming S&P 500 Real Estate sector's .SPLRCR 8.6% advance and S&P 500's .SPX 15.4% gain this year
** Avg rating among 21 analysts is "hold" and median PT is $227, up from $213 a month ago, per LSEG data
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
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