05:14 PM EDT, 09/05/2024 (MT Newswires) -- AvalonBay Communities ( AVB ) said late Thursday it is starting an underwritten public offering of 3.2 million shares in connection with forward sale agreements with certain banks.

The company said it plans to grant underwriters a 30-day option to buy up to an additional 480,000 shares.

AvalonBay said it expects to sign forward sale agreements with Goldman Sachs, Bank of America, Deutsche Bank Securities and Morgan Stanley. The forward purchasers or their affiliates will borrow or sell to underwriters a total of 3.2 million shares.

The company said it plans to use proceeds from the future settlement of forward sale agreements for land acquisitions, development and redevelopment of apartment communities, acquisition of communities, funding of structured investment programs, working capital and general corporate purposes.

Shares of the company were down nearly 2% in recent after-hours activity.

Price: 222.10, Change: -4.42, Percent Change: -1.95