Equity Residential (EQR) investor relations material

Executive summary

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

• The merger aims to deliver earnings accretion, margin expansion, and enhanced growth opportunities, with $175M in gross synergies expected within 18 months.

• Both companies reported strong Q2 2026 results, with above-expectation revenue and NOI growth, and raised full-year guidance.

• Q2 2026 EPS was $0.30, down 40% year-over-year, while Normalized FFO per share rose 3% to $1.02.

• Special shareholder meetings to approve the transaction are scheduled for August 12, 2026.

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 posted 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: $0.30 vs. $0.50 in Q2 2025; Normalized FFO per share: $1.02 vs. $0.99.

• Net income for Q2 2026: $117.7M; six months: $210.8M.

• Both companies exceeded their respective FFO per share outlooks due to favorable revenue and expense performance.

Outlook and guidance

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

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

• Raised midpoint of 2026 same store revenue growth to 2.1%-2.7% and NOI growth to 1.5%-2.1%.

• Physical occupancy guidance at 96.3% for full year.

• EPS and FFO guidance withdrawn due to pending merger.