AvalonBay Communities (AVB) investor relations material

Executive summary

• Equity Residential and AvalonBay Communities announced a transformative all-stock merger of equals, creating a leading rental housing platform with an enterprise value of $71B, over 184,000 apartment homes, and a pro forma equity market cap of $53B.

• The merger is expected to deliver earnings accretion, margin expansion, and enhanced growth opportunities for shareholders of both companies.

• Integration priorities include seamless resident experience, organizational readiness, and realization of $175M gross synergies within 18 months.

• Q2 2026 delivered strong operational results, with performance exceeding expectations and a robust portfolio in supply-constrained markets.

• The company suspended EPS, FFO, and Core FFO outlooks due to the pending merger.

Financial highlights

• Equity Residential reported 2Q26 Normalized FFO per share growth of 3.0% year-over-year, with Same Store Residential Revenue up 2.1% and NOI up 1.7%.

• AvalonBay reported 2Q26 Core FFO per share growth of 1.4% year-over-year, with Same Store Residential Revenue up 1.6% and NOI up 1.0%.

• Q2 2026 EPS was $1.11, down 41% year-over-year; FFO per share was $2.73 (down 2.5%), and Core FFO per share was $2.86 (up 1.4%).

• Both companies increased their full-year 2026 Same Store Revenue and NOI growth outlooks, reflecting strong operating trends.

• Dividends per share increased 1.7% year-over-year to $1.78 for Q2.

Outlook and guidance

• Equity Residential raised its full-year 2026 Same Store Revenue and NOI growth midpoints by 20 and 30 basis points, respectively.

• AvalonBay increased its full-year Same Store Residential Revenue and NOI growth outlooks by 20 and 40 basis points, respectively.

• Updated 2026 Same Store outlook: projected revenue growth of 1.1–2.1%, operating expense growth of 3.0–4.0%, and NOI growth of 0.0–1.4% over 2025.

• Both companies expect established markets to continue outperforming expansion markets, with San Francisco and New York leading growth.

• Full-year guidance for EPS, FFO, and Core FFO suspended due to the pending merger.