Equity Residential (EQR) investor relations material

Deal rationale and strategic fit

• Merger creates the largest public apartment company in the modern REIT era, with over 180,000 apartments, a pro forma enterprise value of nearly $70 billion, and a $52 billion equity market capitalization.

• Expands investment opportunities, solidifies leadership in rental housing, and aims for structurally superior earnings and dividend growth.

• Combines complementary portfolios, deep talent, and strong cultures to build a differentiated company with a higher growth profile.

• Enhanced scale enables better technology adoption, data analytics, and capital allocation, positioning the new entity for sustainable outperformance.

• Commitment to affordable housing through new initiatives and partnerships with nonprofit developers.

Financial terms and conditions

• All-stock merger of equals; AvalonBay shareholders receive 2.793 newly issued Equity Residential shares per AvalonBay share.

• Pro forma ownership: 51.2% AvalonBay shareholders, 48.8% Equity Residential shareholders.

• The company will be dual-headquartered in Chicago and Arlington, with a new name to be announced at closing.

• Transaction unanimously approved by both boards and expected to qualify as a tax-free reorganization for U.S. federal income tax purposes.

• Initial annualized dividend of $2.81 per share, higher than AvalonBay's current yield.

Synergies and expected cost savings

• Projected $175 million in gross synergies and $125 million in net synergies after real estate tax reassessments.

• Synergies expected to be fully realized within 18 months post-closing, with over 85% in place by end of 2027.

• Efficiencies from combined corporate and property management overhead, technology, and portfolio NOI improvements.

• About 80% of NOI synergies are expense-driven, with 20% from service revenue enhancements.

• Enhanced operational scale and technology to drive incremental Net Operating Income and higher returns on new investments.