Vivmark Residential (VMRK) Investor presentation summary

Merger overview and strategic rationale

• Announced an all-stock merger of equals, creating a combined enterprise value of $71B and over 184,000 apartment homes across 634 communities.

• The merger aims to redefine leadership in rental housing, with 95% regional overlap by NOI, enabling significant margin expansion.

• The combined company will have an initial annualized dividend of $2.81 per share, higher than AVB's current yield.

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

• Executive leadership will be led by Benjamin Schall as CEO, with a balanced board from both companies.

Financial and operational highlights

• Both companies delivered earnings accretion, with Equity Residential reporting 2Q26 normalized FFO per share growth of 3.0% and AvalonBay reporting 1.4%.

• Equity Residential increased its full-year same store revenue and NOI guidance midpoints, reflecting strong occupancy and rent growth, especially in San Francisco and New York.

• AvalonBay exceeded its 2Q26 core FFO outlook, driven by higher effective lease rates and lower expenses, and raised its full-year revenue and NOI growth outlook.

• Both companies benefited from lower-than-expected repairs, maintenance, and payroll costs, supporting NOI outperformance.

Market and regional performance

• San Francisco and New York led performance with strong demand and rent increases; Washington, D.C. and Seattle saw softer demand.

• AvalonBay's Northern California and Metro NY/NJ regions showed accelerating rent growth, while Seattle underperformed due to tech layoffs.

• Established markets represent the majority of revenue for both companies, with expansion markets contributing less but monitored for growth.