AvalonBay and Equity Residential (EQR) announce merger of equals; will host a joint investor conference call on May 21 at 8:00 a.m. ET

[출처/시간] Briefing.com - 6:17 AM ET, 05/21/2026

Transaction Highlights: Creates the preeminent multifamily real estate company with a pro forma equity market capitalization of approximately $52 billion and an enterprise value of approximately $69 billion, with more than 180,000 rental apartments. Enhances the resident experience and expands margins by scaling proven operational innovations across a larger portfolio - through technology, centralized services, and leading regional teams - driving incremental Net Operating Income across existing assets and higher returns on new investments. Accretive to both AvalonBay and Equity Residential shareholders, generating $175 million of gross synergies and $125 million of net synergies after real estate tax reassessments, creating one of the most efficient operators in the industry. Combined $2 billion of annual cash flow and self-funding capacity to deploy across multiple channels of growth, utilizing operational scale and customer insights to allocate capital to the strongest risk-adjusted returns. Expands investment opportunities and solidifies the combined company as one of the country's leading creators of new rental housing, with $4.4 billion and 10,800 apartments under construction, serving as a continued driver of earnings growth and value for shareholders.Transaction Details: Under the terms of the agreement, which has been unanimously approved by the Board of Directors of AvalonBay and the Board of Trustees of Equity Residential, AvalonBay shareholders will receive 2.793 shares of Equity Residential common stock for each share of AvalonBay common stock owned. Upon closing, AvalonBay shareholders will own approximately 51.2% and Equity Residential shareholders will own approximately 48.8% of the combined company on a fully diluted basis. The transaction is expected to be completed in the second half of 2026, subject to shareholder approval by both AvalonBay and Equity Residential and satisfaction of other customary closing conditions. The transaction is expected to qualify as a tax-free reorganization for U.S. federal income tax purposes. Dividend: The combined company expects to deliver an attractive current yield to investors through the payment of an initial expected annualized dividend of $2.81 per share, equivalent to Equity Residential's existing dividend per share and higher than AvalonBay's current dividend yield. Conference Call: AvalonBay and Equity Residential will host a joint investor conference call on May 21 at 8:00 am Eastern Time.