Excluding impairments and other charges, the company's 4Q FFO [funds from operations] increased 6.7% vs. the prior year period.

Due to recent share price declines, current valuations are compelling. Investors now have the opportunity to acquire a blue-chip apartment REIT at a significant discount to asset values. AVB has a solid balance sheet with manageable near-term debt maturities. In addition, the company has plenty of capacity to fund its development pipeline.

We still like apartments vs. other REITs sectors going into 2009. Apartment landlords should be less affected by the economic downturn than retail, office, industrial or self storage. The continued slowdown in home sales has created a larger pool of renters.

Read the full analyst report on AVB

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