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, with dual headquarters and a new board structure.

• 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.

• Report covers the quarter ended June 30, 2026, for a large multifamily REIT operating 312 properties with 85,520 apartment units across 10 states and D.C., all operations through its operating partnership.

• Merger announced May 21, 2026; combined executive leadership and board announced in June, with closing expected in the second half of 2026.

Financial highlights

• Q2 2026 EPS was $0.30, down from $0.50 year-over-year; Normalized FFO per share was $1.02, up 3% year-over-year.

• Rental income for the six months ended June 30, 2026, was $1.565B, up 2.3% year-over-year; net income was $210.8M, down from $463.6M in the prior year.

• Same store NOI increased 1.4% to $1.004B, driven by higher occupancy and renewal rates; consolidated NOI rose 0.8% to $1.033B.

• FFO for the six months was $723.4M, with Normalized FFO at $774.5M.

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

Outlook and guidance

• Both companies raised full-year 2026 guidance for same store revenue and NOI growth, with Equity Residential increasing midpoints by 20 and 30 basis points, and AvalonBay by 20 and 40 basis points.

• The merger is expected to close in the second half of 2026, subject to approvals, with anticipated synergies and operational efficiencies.

• Physical occupancy guidance at 96.3% for the full year.

• Dividend/distribution for Q2 2026 was $0.7025 per share/unit, annualized up 1.4% from 2025.

• EPS and FFO guidance withdrawn due to pending merger.