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Research Alert: Avalonbay Communities And Equity Residential Announce Merger

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

AVB and EQR announced an all-stock merger with AVB shareholders receiving 2.793 EQR shares per AVB share, creating pro forma ownership of 51.2% AVB and 48.8% EQR, expected to close 2H 2026. The transaction creates the largest multifamily residential REIT with $125M initial operating savings and $175M gross synergies, accretive to both companies' core FFO. We believe the merger delivers significant scale advantages through 95% regional property overlap and AI-led platform capabilities that will drive operational efficiencies and market opportunities. Both boards approved the transaction with projected synergies from enhanced density and technology integration. The combined development pipeline totals $4.4B for 10,800 homes underway and $4.2B for 9,800 future homes. We think integration shows year-one synergy capture, years two-three platform acceleration with wider margins, and year three+ accretive FFO growth through technology advantages and reduced per-unit costs from greater community density.

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