EQUITY RESIDENTIAL (EQR) · Material Event (8-K) SEC Filing

EX-99.1 3 eqr-ex99_1.htm EX-99.1 EX-99.1 Exhibit 99.1 UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS IntroductionOn May 20, 2026, AvalonBay Communities, Inc., a Maryland corporation ( AvalonBay ), Equity Residential, a Maryland real estate investment trust ( Equity Residential ), ERP Operating Limited Partnership, an Illinois limited partnership ( ERP Operating Partnership ) and Canopy Merger Sub LLC, a Maryland limited liability company and a direct wholly owned subsidiary of Equity Residential ( Merger Sub ) entered into an Agreement and Plan of Merger (the Merger Agreement ) to combine through a stock-for-stock merger (the Merger ) and form the combined company (the Combined Company ). Upon the terms and subject to the conditions of the Merger Agreement, (i) on the closing date but prior to the effective time, AvalonBay will contribute certain assets in exchange for partnership interests in ERP Operating Partnership ( ERP Operating Partnership Units ) that have, in the aggregate, a value equal to the fair market value of such contributed assets and (ii) following the asset contribution and at the effective time, AvalonBay will merge with and into Merger Sub, with Merger Sub surviving the Merger as a direct, wholly owned subsidiary of Equity Residential. Immediately following the closing of the Merger, Merger Sub will merge with and into ERP Operating Partnership, with ERP Operating Partnership remaining as the surviving entity. Equity Residential is the general partner of, and as of June 30, 2026, owned an approximate 97.6% ownership interest in ERP Operating Partnership. ERP Operating Partnership Units can be exchanged on a one-for-one basis with common shares of beneficial interest, par value $0.01 per share, of Equity Residential ( Equity Residential Common Shares ). References to the Parent Company mean collectively Equity Residential and ERP Operating Partnership. The Parent Company refers to Common Shares and Units as equity securities for Equity Residential and General Partner Units and Limited Partner Units as equity securities for ERP Operating Partnership. The Merger Agreement provides that each outstanding share of common stock of AvalonBay, par value $0.01 per share ( AvalonBay Common Stock ) (other than shares of AvalonBay Common Stock held in treasury or held or owned by AvalonBay, Equity Residential or Merger Sub (collectively, the ( Cancelled Shares )) issued and outstanding immediately prior to the Merger will be converted at the effective time into the right to receive 2.793 Equity Residential Common Shares and cash in lieu of fractional shares, if any (the Exchange Ratio ). This Exchange Ratio is fixed and will not be adjusted to reflect stock price changes prior to the consummation of the Merger. Accordingly, the value of the consideration to be received in exchange for each share of AvalonBay Common Stock will fluctuate with the market value of Equity Residential Common Shares until the Merger is completed. Equity Residential and AvalonBay expect to complete the Merger in the second half of 2026, although Equity Residential and AvalonBay cannot assure completion by any particular date, if at all. Immediately following the completion of the Merger, legacy AvalonBay stockholders are expected to own approximately 51% and legacy Equity Residential shareholders approximately 49% of the Combined Company. After consideration of all applicable factors pursuant to the business combination accounting rules, the Merger results in a reverse acquisition in which Parent Company is considered the “legal acquirer” because Equity Residential issues Equity Residential Common Shares to AvalonBay stockholders, while AvalonBay is the “accounting acquirer” based on the following indicators: (i) legacy AvalonBay stockholders will hold the largest portion of the ownership percentage in the Combined Company; and (ii) AvalonBay’s senior management, including its Chief Executive Officer and President, will comprise the majority of the executive management team of the Combined Company. Although Equity Residential is issuing Equity Residential Common Shares to AvalonBay stockholders for legal purposes, AvalonBay is treated as the buyer for accounting purposes with Parent Company treated as the acquiree. Accordingly, the following Unaudited Pro Forma Condensed Consolidated Financial Statements present AvalonBay’s historical balances and results, with Parent Company’s assets and liabilities recorded at estimated fair value. On May 20, 2026, in connection with the Merger, ERP Operating Partnership entered into a commitment letter (the Commitment Letter ) with Morgan Stanley Senior Funding, Inc. ( MSSF ), Wells Fargo Securities, LLC and Wells Fargo Bank, National Association ( Wells Fargo Bank ), pursuant to which MSSF (and its designated affiliates) and Wells Fargo Bank committed to provide ERP Operating Partnership with, subject to the terms and conditions of the Commitment Letter, up to $2.0 billion of senior unsecured bridge loans (the Bridge Facility ). The proceeds of the Bridge Facility, together with cash on hand and proceeds of commercial paper issuances, are expected to be available to fund any repayment or refinancing of ERP Operating Partnership’s existing indebtedness and AvalonBay’s existing indebtedness and to pay fees and expenses related to the Merger, subject to the satisfaction of customary conditions set forth in the Commitment Letter. The Bridge Facility is expected to initially bear interest on amounts drawn at a rate of SOFR + 0.725% per annum (subject to change based on credit ratings and the time the Bridge Facility remains outstanding) plus additional fees, and will mature 364 days following the closing of the Merger. The timing and amounts of borrowings under the Bridge Facility, if any, have not yet been determined. Therefore, the pro forma financial information does not give effect to the Bridge Facility. However, the pro forma financial information gives effect to the expected issuance of commercial paper to finance estimated transaction costs that will be incurred for the Merger. Pro Forma InformationThe accompanying Unaudited Pro Forma Condensed Consolidated Balance Sheets as of June 30, 2026 have been prepared as if the Merger had occurred as of that date. The accompanying Unaudited Pro Forma Condensed Consolidated Statements of Operations for the year ended December 31, 2025 and for the six months ended June 30, 2026 have been prepared as if the Merger had occurred on January 1, 2025. This report combines the Unaudited Pro Forma Condensed Consolidated Financial Statements of Equity Residential and ERP Operating Partnership as Parent Company believes that combining them into this single report provides the following benefits:•enhances investors' understanding of the Parent Company by enabling investors to view the business as a whole in the same manner as management views and operates the business;•eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both Equity Residential and ERP Operating Partnership; and•creates time and cost efficiencies through the preparation of one combined report instead of two separate reports. Pro forma adjustments, and the assumptions on which they are based, are described in the accompanying “Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.” The pro forma adjustments and the preliminary fair value measurements as presented are based on estimates and certain information that is currently available. The total deemed consideration (calculated based on the fair value of shares of AvalonBay Common Stock as if AvalonBay had issued AvalonBay Common Stock to effect the Merger) and the assignment of fair values to Parent Company’s identifiable assets acquired and liabilities assumed are preliminary and based upon currently available information and certain assumptions, are subject to change and could vary materially from the actual amounts at the time the Merger is completed. The fair value allocation will be finalized subsequent to the Merger being consummated. The pro forma information has been prepared in accordance with Article 11 of Regulation S-X as promulgated by the Securities and Exchange Commission ( SEC ), as amended by the SEC’s final rule, Release No. 33-10786, “Amendments to Financial Disclosures about Acquired and Disposed Businesses.” All significant adjustments necessary to reflect the effects of the Merger are based on reasonable estimates using the information currently available. The pro forma information is presented for illustrative purposes only and is not necessarily indicative of the combined operating results or financial position that would have occurred if such transactions had been consummated on the dates and in accordance with the assumptions described herein, nor is it necessarily indicative of future operating results or financial position of the Combined Company. The Unaudited Pro Forma Condensed Consolidated Financial Statements, although helpful in illustrating the financial position and results of operations of the Combined Company under one set of assumptions, do not reflect the benefits of expected cost savings (or associated costs to achieve such savings), opportunities to earn additional revenue and any costs necessary to earn additional revenue, or other factors that may result as a consequence of the Merger and do not attempt to predict or suggest future results. You are urged to read the pro forma information below together with the historical audited and unaudited consolidated financial statements of each of AvalonBay and Parent Company and the related notes thereto. AVALONBAY AND EQUITY RESIDENTIALUNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETJune 30, 2026(Amounts in thousands) AvalonBayHistorical EquityResidentialHistorical (A) Pro FormaMergerAdjustments OtherPro FormaAdjustments CombinedCompanyPro Forma ASSETS Real estate, net $ 20,974,899 $ 18,986,902 $ 14,969,138 (C) $ — $ 54,930,939 Unconsolidated investments 199,046 323,342 32,260 (D) — 554,648 Cash and cash equivalents 80,682 36,405 — (50,470 ) (E) 66,617 Restricted cash 165,436 106,975 — — 272,411 Right-of-use lease assets 144,141 450,474 (3,504 ) (F) — 591,111 Other assets 736,147 371,479 (43,624 ) (G) — 1,064,002 Total assets $ 22,300,351 $ 20,275,577 $ 14,954,270 $ (50,470 ) $ 57,479,728 LIABILITIES AND EQUITY Liabilities: Unsecured debt, net $ 7,408,395 $ 6,002,002 $ (314,148 ) (H) $ — $ 13,096,249 Variable rate unsecured credit facility and commercial paper, net 915,786 667,846 (66 ) (H) 689,530 (H) 2,273,096 Mortgage notes payable, net 700,599 1,591,821 (56,299 ) (H) — 2,236,121 Dividends payable 256,954 269,489 — — 526,443 Accrued expenses and other liabilities 627,515 554,009 — — 1,181,524 Lease liabilities 162,444 303,831 (53,860 ) (F) — 412,415 Total liabilities 10,071,693 9,388,998 (424,373 ) 689,530 19,725,848 Redeemable Noncontrolling Interests – ERP Operating Partnership — 189,941 — (M) — 189,941 Equity: Shareholders' equity: Preferred shares — 17,155 — — 17,155 Common shares 1,419 3,749 (3,749 ) (I) 6,287 (I) 7,706 Additional paid-in-capital 11,739,908 9,840,190 15,663,270 (I) (6,287 ) (I) 37,237,081 Accumulated other comprehensive income 38,896 2,748 (2,748 ) (J) — 38,896 Retained earnings 242,188 651,138 (651,138 ) (K) (740,000 ) (K) (497,812 ) Total shareholders’ equity 12,022,411 10,514,980 15,005,635 (740,000 ) 36,803,026 Noncontrolling Interests: DownREIT Units and Partially Owned Properties 206,247 (1,158 ) 116,965 (L) — 322,054 ERP Operating Partnership — 182,816 256,043 (M) — 438,859 Total Noncontrolling Interests 206,247 181,658 373,008 — 760,913 Total equity 12,228,658 10,696,638 15,378,643 (740,000 ) 37,563,939 Total liabilities and equity $ 22,300,351 $ 20,275,577 $ 14,954,270 $ (50,470 ) $ 57,479,728 AVALONBAY AND EQUITY RESIDENTIALUNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONSSix months ended June 30, 2026(in thousands, except per share data) AvalonBayHistorical EquityResidentialHistorical (A) Pro FormaMergerAdjustments OtherPro FormaAdjustments CombinedCompanyPro Forma REVENUES Total revenue $ 1,548,047 $ 1,565,326 $ — (N) $ — $ 3,113,373 EXPENSES Operating expenses, excluding property taxes 394,188 402,698 — — 796,886 Property taxes 180,223 205,324 — — 385,547 Expensed transaction, development and other costs 28,011 1,610 — — 29,621 Interest expense, net 141,559 161,883 19,635 (P) 15,289 (P) 338,366 Depreciation expense 466,079 493,875 150,529 (Q) — 1,110,483 General and administrative expenses 49,214 78,045 — — 127,259 Total expenses 1,259,274 1,343,435 170,164 15,289 2,788,162 Income (loss) from investments in unconsolidated entities 1,120 5,997 — — 7,117 Structured Investment Program interest income 15,185 — — — 15,185 Gain (loss) on sale of real estate and other income 179,881 (16,214 ) — — 163,667 Income before income taxes 484,959 211,674 (170,164 ) (15,289 ) 511,180 Income tax benefit (expense) 224 (833 ) — — (609 ) Income from continuing operations 485,183 210,841 (170,164 ) (15,289 ) 510,571 Net income 485,183 210,841 (170,164 ) (15,289 ) 510,571 Net (income) loss attributable to Noncontrolling Interests: DownREIT Units and Partially Owned Properties (3,733 ) (2,173 ) 1,054 (R) — (4,852 ) ERP Operating Partnership — (4,454 ) (1,203 ) (S) 164 (S) (5,493 ) Preferred distributions — (711 ) — — (711 ) Net income attributable to common shareholders $ 481,450 $ 203,503 $ (170,313 ) $ (15,125 ) $ 499,515 Earnings per share – basic: $ 3.43 $ 0.54 $ 0.65 (T) Earnings per share – diluted: $ 3.43 $ 0.54 $ 0.65 (T) AVALONBAY AND EQUITY RESIDENTIALUNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONSYear ended December 31, 2025(in thousands, except per share data) AvalonBayHistorical EquityResidentialHistorical (A) Pro FormaMergerAdjustments OtherPro FormaAdjustments CombinedCompanyPro Forma REVENUES Total revenue $ 3,040,725 $ 3,095,208 $ — (N) $ — $ 6,135,933 EXPENSES Operating expenses, excluding property taxes 778,171 748,036 — — 1,526,207 Property taxes 342,743 401,457 — — 744,200 Expensed transaction, development and other costs 12,122 7,734 — 740,000 (O) 759,856 Interest expense, net 259,181 309,626 38,663 (P) 35,181 (P) 642,651 Depreciation expense 913,376 1,010,400 909,766 (Q) — 2,833,542 General and administrative expenses 86,679 114,029 — — 200,708 Total expenses 2,392,272 2,591,282 948,429 775,181 6,707,164 Income (loss) from investments in unconsolidated entities 39,691 6,433 — — 46,124 Structured Investment Program interest income 27,476 — — — 27,476 Gain (loss) on sale of real estate and other income 339,844 643,175 — — 983,019 Income before income taxes 1,055,464 1,153,534 (948,429 ) (775,181 ) 485,388 Income tax benefit (expense) 1,135 (1,585 ) — — (450 ) Income from continuing operations 1,056,599 1,151,949 (948,429 ) (775,181 ) 484,938 Net income 1,056,599 1,151,949 (948,429 ) (775,181 ) 484,938 Net (income) loss attributable to Noncontrolling Interests: DownREIT Units and Partially Owned Properties (5,298 ) (4,455 ) 2,433 (R) — (7,320 ) ERP Operating Partnership — (27,405 ) 13,901 (S) 8,307 (S) (5,197 ) Preferred distributions — (1,422 ) — — (1,422 ) Net income attributable to common shareholders $ 1,051,301 $ 1,118,667 $ (932,095 ) $ (766,874 ) $ 470,999 Earnings per share – basic: $ 7.40 $ 2.95 $ 0.61 (T) Earnings per share – diluted: $ 7.40 $ 2.94 $ 0.60 (T) AVALONBAY AND ERP OPERATING PARTNERSHIPUNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETJune 30, 2026(Amounts in thousands) AvalonBayHistorical (B) ERP Operating PartnershipHistorical (A) Pro FormaMergerAdjustments OtherPro FormaAdjustments CombinedCompanyPro Forma ASSETS Real estate, net $ 20,974,899 $ 18,986,902 $ 14,969,138 (C) $ — $ 54,930,939 Unconsolidated investments 199,046 323,342 32,260 (D) — 554,648 Cash and cash equivalents 80,682 36,405 — (50,470 ) (E) 66,617 Restricted cash 165,436 106,975 — — 272,411 Right-of-use lease assets 144,141 450,474 (3,504 ) (F) — 591,111 Other assets 736,147 371,479 (43,624 ) (G) — 1,064,002 Total assets $ 22,300,351 $ 20,275,577 $ 14,954,270 $ (50,470 ) $ 57,479,728 LIABILITIES AND EQUITY Liabilities: Unsecured debt, net $ 7,408,395 $ 6,002,002 $ (314,148 ) (H) $ — $ 13,096,249 Variable rate unsecured credit facility and commercial paper, net 915,786 667,846 (66 ) (H) 689,530 (H) 2,273,096 Mortgage notes payable, net 700,599 1,591,821 (56,299 ) (H) — 2,236,121 Dividends payable 256,954 269,489 — — 526,443 Accrued expenses and other liabilities 627,515 554,009 — — 1,181,524 Lease liabilities 162,444 303,831 (53,860 ) (F) — 412,415 Total liabilities 10,071,693 9,388,998 (424,373 ) 689,530 19,725,848 Redeemable Limited Partners — 189,941 — (M) — 189,941 Capital: Partners' capital: Preference Units — 17,155 — — 17,155 General Partner 11,983,515 10,495,077 15,008,383 (I)(K) (740,000 ) (I)(K) 36,746,975 Limited Partners — 182,816 256,043 (M) — 438,859 Accumulated other comprehensive income 38,896 2,748 (2,748 ) (J) — 38,896 Total partners' capital 12,022,411 10,697,796 15,261,678 (740,000 ) 37,241,885 Noncontrolling Interests: DownREIT Units and Partially Owned Properties 206,247 (1,158 ) 116,965 (L) — 322,054 Total Noncontrolling Interests 206,247 (1,158 ) 116,965 — 322,054 Total capital 12,228,658 10,696,638 15,378,643 (740,000 ) 37,563,939 Total liabilities and capital $ 22,300,351 $ 20,275,577 $ 14,954,270 $ (50,470 ) $ 57,479,728 AVALONBAY AND ERP OPERATING PARTNERSHIPUNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONSSix months ended June 30, 2026(in thousands, except per Unit data) AvalonBayHistorical (B) ERP Operating PartnershipHistorical (A) Pro FormaMergerAdjustments OtherPro FormaAdjustments CombinedCompanyPro Forma REVENUES Total revenue $ 1,548,047 $ 1,565,326 $ — (N) $ — $ 3,113,373 EXPENSES Operating expenses, excluding property taxes 394,188 402,698 — — 796,886 Property taxes 180,223 205,324 — — 385,547 Expensed transaction, development and other costs 28,011 1,610 — — 29,621 Interest expense, net 141,559 161,883 19,635 (P) 15,289 (P) 338,366 Depreciation expense 466,079 493,875 150,529 (Q) — 1,110,483 General and administrative expenses 49,214 78,045 — — 127,259 Total expenses 1,259,274 1,343,435 170,164 15,289 2,788,162 Income (loss) from investments in unconsolidated entities 1,120 5,997 — — 7,117 Structured Investment Program interest income 15,185 — — — 15,185 Gain (loss) on sale of real estate and other income 179,881 (16,214 ) — — 163,667 Income before income taxes 484,959 211,674 (170,164 ) (15,289 ) 511,180 Income tax benefit (expense) 224 (833 ) — — (609 ) Income from continuing operations 485,183 210,841 (170,164 ) (15,289 ) 510,571 Net income 485,183 210,841 (170,164 ) (15,289 ) 510,571 DownREIT Units and Partially Owned Properties (3,733 ) (2,173 ) 1,054 (R) — (4,852 ) Net income attributable to controlling interests $ 481,450 $ 208,668 $ (169,110 ) $ (15,289 ) $ 505,719 ALLOCATION OF NET INCOME: Preference Units $ — $ 711 $ — $ — $ 711 General Partner $ 481,450 $ 203,503 $ (170,313 ) $ (15,125 ) $ 499,515 Limited Partners — 4,454 1,203 (S) (164 ) (S) 5,493 Net income available to Units $ 481,450 $ 207,957 $ (169,110 ) $ (15,289 ) $ 505,008 Earnings per Unit – basic: $ 3.43 $ 0.54 $ 0.65 (U) Earnings per Unit – diluted: $ 3.43 $ 0.54 $ 0.65 (U) AVALONBAY AND ERP OPERATING PARTNERSHIPUNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONSYear ended December 31, 2025(in thousands, except per Unit data) AvalonBayHistorical (B) ERP Operating PartnershipHistorical (A) Pro FormaMergerAdjustments OtherPro FormaAdjustments CombinedCompanyPro Forma REVENUES Total revenue $ 3,040,725 $ 3,095,208 $ — (N) $ — $ 6,135,933 EXPENSES Operating expenses, excluding property taxes 778,171 748,036 — — 1,526,207 Property taxes 342,743 401,457 — — 744,200 Expensed transaction, development and other costs 12,122 7,734 — 740,000 (O) 759,856 Interest expense, net 259,181 309,626 38,663 (P) 35,181 (P) 642,651 Depreciation expense 913,376 1,010,400 909,766 (Q) — 2,833,542 General and administrative expenses 86,679 114,029 — — 200,708 Total expenses 2,392,272 2,591,282 948,429 775,181 6,707,164 Income (loss) from investments in unconsolidated entities 39,691 6,433 — — 46,124 Structured Investment Program interest income 27,476 — — — 27,476 Gain (loss) on sale of real estate and other income 339,844 643,175 — — 983,019 Income before income taxes 1,055,464 1,153,534 (948,429 ) (775,181 ) 485,388 Income tax benefit (expense) 1,135 (1,585 ) — — (450 ) Income from continuing operations 1,056,599 1,151,949 (948,429 ) (775,181 ) 484,938 Net income 1,056,599 1,151,949 (948,429 ) (775,181 ) 484,938 DownREIT Units and Partially Owned Properties (5,298 ) (4,455 ) 2,433 (R) — (7,320 ) Net income attributable to controlling interests $ 1,051,301 $ 1,147,494 $ (945,996 ) $ (775,181 ) $ 477,618 ALLOCATION OF NET INCOME: Preference Units $ — $ 1,422 $ — $ — $ 1,422 General Partner $ 1,051,301 $ 1,118,667 $ (932,095 ) $ (766,874 ) $ 470,999 Limited Partners — 27,405 (13,901 ) (S) (8,307 ) (S) 5,197 Net income available to Units $ 1,051,301 $ 1,146,072 $ (945,996 ) $ (775,181 ) $ 476,196 Earnings per Unit – basic: $ 7.40 $ 2.95 $ 0.61 (U) Earnings per Unit – diluted: $ 7.40 $ 2.94 $ 0.60 (U) NOTES TO UNAUDITED PRO FORMACONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1: Basis of Pro Forma PresentationFor purposes of the Unaudited Pro Forma Condensed Consolidated Financial Statements, which we refer to as the unaudited pro forma financial statements, we have assumed a total preliminary purchase price for the Merger of approximately $25.5 billion, which for accounting purposes as a reverse acquisition, consists of shares of AvalonBay Common Stock issued. The pro forma adjustments that give effect to the Merger assume the acquisition of Parent Company is a business combination, with AvalonBay considered the accounting acquirer of Parent Company. Accordingly, the purchase price is allocated to the underlying Parent Company tangible and intangible assets acquired and liabilities assumed based on their respective fair values. We expect that the Merger will create operational and general and administrative cost savings, including property management costs, investment management costs, and costs associated with corporate administration and infrastructure, including duplicative public company costs. There can be no assurance that we will be successful in achieving these anticipated cost savings. Therefore, the unaudited pro forma financial statements included herein do not give effect to any synergies or dis-synergies, potential cost reductions or other operating efficiencies expected to result from the Merger based on management’s plans or intent after the Merger. To the extent identified, certain reclassifications have been reflected in the unaudited pro forma financial statements to conform Parent Company’s financial statement presentation to that of AvalonBay as the accounting acquirer. However, consistent with the requirements of reverse acquisition accounting, the equity structure presented reflects that of the legal acquirer. Accordingly, because AvalonBay does not have a limited partnership capital structure, certain reclassifications have been reflected in the unaudited pro forma financial statements to conform the capital portion of AvalonBay's financial statement presentation to that of ERP Operating Partnership. The unaudited pro forma financial statements may not reflect all the adjustments necessary to conform Parent Company’s accounting policies to those of AvalonBay due to limitations on the availability of information as of the date of this report. (A)The Parent Company historical amounts include reclassification of certain Parent Company balances to conform to the AvalonBay presentation as described below: Balance Sheet: •Parent Company’s presentation included separate line items for Accounts payable and accrued expenses and Other liabilities. These balances have been reclassified to Accrued expenses and other liabilities to conform to AvalonBay’s presentation. Statement of Operations: •Parent Company’s presentation included asset management income and other income as a component of Interest and other income. These balances have been reclassified to Total revenue. Six Months EndedJune 30, 2026 Year EndedDecember 31, 2025 Rental income (historical) $ 1,564,895 $ 3,093,959 Add: Portion of Interest and other income 431 1,249 Total Revenue, as presented $ 1,565,326 $ 3,095,208 •Parent Company’s Property and maintenance and Property management line items have been reclassified to Operating expenses, excluding property taxes. Further, insurance from Parent Company’s Property taxes and insurance and a portion of Parent Company’s Other expenses line item primarily related to advocacy costs have been reclassified to Operating expenses, excluding property taxes. Six Months EndedJune 30, 2026 Year EndedDecember 31, 2025 Property and maintenance (historical) $ 292,410 $ 564,704 Property management (historical) 73,290 133,369 Add: Insurance from Real estate taxes and insurance 33,959 48,997 Add: Portion of Other expenses 3,039 966 Operating expenses, excluding property taxes, as presented $ 402,698 $ 748,036 •Parent Company’s presentation included Real estate taxes and insurance within one line item. Insurance costs have been reclassified to Operating expenses, excluding property taxes. Six Months EndedJune 30, 2026 Year EndedDecember 31, 2025 Real estate taxes and insurance $ 239,283 $ 450,454 Less: Insurance (33,959 ) (48,997 ) Property taxes, as presented $ 205,324 $ 401,457 •Parent Company’s presentation included transaction and pursuit costs of $1.6 million and $7.7 million for the six months ended June 30, 2026 and the year ended December 31, 2025, respectively, as part of the Other expenses line item. Transaction and pursuit costs have been reclassified to Expensed transaction, development and other costs.•Parent Company’s presentation separately disclosed interest income within Interest and other income and non-debt-related interest expense and bank fees within Other expenses. AvalonBay’s presentation discloses Interest expense, net which includes all interest expense and bank fees, and is net of interest income. Parent Company’s interest income, non-debt-related interest expense and bank fees were reclassified to Interest expense, net. Six Months EndedJune 30, 2026 Year EndedDecember 31, 2025 Interest expense incurred, net (historical) $ 159,832 $ 306,798 Amortization of deferred financing costs (historical) 4,290 8,768 Less: Portion of Interest and other income (3,843 ) (8,976 ) Add: Portion of Other expenses 1,604 3,036 Interest expense, net, as presented $ 161,883 $ 309,626 •Parent Company’s presentation of Other expenses included various litigation and other settlement costs that AvalonBay classifies as part of General and administrative expenses. Six Months EndedJune 30, 2026 Year EndedDecember 31, 2025 General and administrative (historical) $ 33,505 $ 65,280 Add: Portion of Other expenses 44,540 48,749 General and administrative, as presented $ 78,045 $ 114,029 •Parent Company’s presentation includes realized and unrealized gains and losses on investment securities as part of Interest and other income. These amounts were reclassified to Income from unconsolidated investments. Six Months EndedJune 30, 2026 Year EndedDecember 31, 2025 Income (loss) from investments in unconsolidated entities (historical) $ (4,360 ) $ (18,915 ) Add: Portion of Interest and other income 10,357 25,348 Income from unconsolidated investments, as presented $ 5,997 $ 6,433 •Parent Company’s presentation separately disclosed Net gain (loss) on sale of real estate properties and Net gain (loss) on sale of land parcels. These amounts were reclassified to Gain (loss) on sale of real estate and other income along with a portion of Interest and other income related to miscellaneous one-time tax credits. Six Months EndedJune 30, 2026 Year EndedDecember 31, 2025 Net gain (loss) on sales of real estate properties (historical) $ (16,776 ) $ 626,388 Net gain (loss) on sales of land parcels (historical) — (80 ) Add: Portion of Interest and other income 562 16,867 Gain (loss) on sale of real estate and other income $ (16,214 ) $ 643,175 (B)The AvalonBay historical presentation includes reclassification of certain AvalonBay financial statement line items to conform to the presentation of a limited partnership as described below: Balance Sheet: •AvalonBay's presentation of Equity - Common shares, Equity - Additional paid-in capital, and Equity - Retained earnings have been reclassified in total as Partners' Capital - General Partner. As of June 30, 2026 Equity - Common shares (historical) $ 1,419 Equity - Additional paid-in-capital (historical) 11,739,908 Equity - Retained earnings (historical) 242,188 Partners' Capital - General Partner, as presented $ 11,983,515 •AvalonBay's presentation included $12.0 billion on the Total shareholders' equity line item. This amount has been reclassified as Total partners' capital.•AvalonBay's presentation included $12.2 billion on the Total equity line item. This amount has been reclassified as Total capital.•AvalonBay's presentation included $22.3 billion on the Total liabilities and equity line item. This amount has been reclassified as Total liabilities and capital. Statement of Operations: •AvalonBay's presentation included Net income attributable to common shareholders of $481.5 million and $1.1 billion for the six months ended June 30, 2026 and the year ended December 31, 2025, respectively. These amounts have been reclassified as Net income attributable to controlling interests, Allocation of net income to General Partner, and Net income available to Units. The unaudited pro forma adjustments are based on preliminary estimates, accounting judgments and currently available assumptions that AvalonBay and Parent Company’s management believes are reasonable. All significant adjustments necessary to reflect the effects of the Merger are based on reasonable estimates using the information currently available. Transaction CostsFor purposes of the pro forma information, adjustments for the estimated transaction costs for the Merger have been included. The estimated transaction and integration costs ( Transaction Costs ) for both AvalonBay and Parent Company are expected to be approximately $740.0 million in the aggregate, comprised of (i) real estate transfer taxes, (ii) advisory fees, (iii) legal and accounting and other professional fees, (iv) financing costs, and (v) executive change-in-control and severance payments for executives not expected to continue with the Combined Company. These Transaction Costs are expensed as incurred and are reflected as a pro forma adjustment to the Unaudited Pro Forma Condensed Consolidated Statements of Operations for the year ended December 31, 2025. These Transaction Costs estimates are preliminary and subject to change as additional information becomes available; actual costs incurred may differ materially from these estimates. The Transaction Costs, together with the associated interest expense on the commercial paper issued to fund them, are non-recurring items directly attributable to the Merger and are not expected to affect the Combined Company's results of operations beyond the twelve months following the closing of the Merger.The unaudited pro forma financial statements do not reflect: (i) non-executive employee severance, redundancy or workforce reduction costs, (ii) technology, systems integration or data migration costs, (iii) any cost savings or operating synergies that the Combined Company may realize following the Merger or the costs necessary to achieve such synergies or (iv) any dis-synergies that may result from the Merger. Note 2: Significant Accounting PoliciesThe accounting policies used in the preparation of these unaudited pro forma financial statements are those set out in AvalonBay’s unaudited consolidated financial statements as of and for the six months ended June 30, 2026 and AvalonBay’s audited consolidated financial statements for the year ended December 31, 2025. Based on the procedures performed to date, AvalonBay and Parent Company’s management have not identified any significant accounting policy differences expected to have a material impact on the pro forma financial information. A more comprehensive review will be completed prior to the closing date.AvalonBay will continue to conduct a more detailed review of Parent Company’s accounting policies to determine if differences in accounting policies require further reclassification or adjustment of Parent Company’s assets, liabilities or noncontrolling interests, or reclassification or adjustment of results of operations to conform to AvalonBay’s accounting policies and classifications. Therefore, AvalonBay may identify additional differences between the accounting policies of the two companies that, when conformed, could have a material impact on the unaudited pro forma financial statements. In certain cases, the information necessary to evaluate the differences in accounting policies and the impacts thereof may not be available until after the closing date. Note 3: Preliminary Purchase Price and ConsiderationAs AvalonBay is the accounting acquirer, the calculation of the purchase price for accounting purposes is based on shares of AvalonBay Common Stock. However, under the terms of the Merger Agreement, each share of AvalonBay Common Stock (other than the Cancelled Shares) issued and outstanding immediately prior to the Merger will be converted at the effective time into the right to receive 2.793 Equity Residential Common Shares, plus cash in lieu of fractional shares, if any. The conversion would result in approximately 770.6 million common shares of the Combined Company outstanding following the Merger, based on the number of shares of AvalonBay Common Stock and Equity Residential Common Shares outstanding in each case as of June 30, 2026.The estimated aggregate consideration has been determined based on the closing price of shares of AvalonBay Common Stock on July 15, 2026, the latest practicable date prior to the date of this report, of $190.29.The pro forma financial information reflects estimated aggregate consideration of approximately $25.5 billion for the Merger, as calculated below due to AvalonBay being the accounting acquirer (in thousands, except price per share): Total estimated common shares of Combined Company 770,588 Equivalent pre-exchange shares of AvalonBay 275,900 Less: Outstanding shares of AvalonBay as of June 30, 2026 (141,876 ) Hypothetical AvalonBay shares to be issued to acquire Parent Company as of June 30, 2026 134,024 AvalonBay share price as of July 15, 2026 $ 190.29 Total estimated aggregate consideration $ 25,503,460 The above estimated aggregate consideration excludes an estimate for the fair value of the pre-combination portion of Equity Residential’s share-based compensation awards, as this amount is not expected to be material. In addition, we have not included an adjustment to the Unaudited Pro Forma Condensed Consolidated Statements of Operations to reflect the change in compensation expense as a result of the estimated fair value of Equity Residential’s unamortized share-based compensation awards attributable to the post-combination period as the impact is not expected to be material.The actual purchase price will fluctuate with the market price of shares of AvalonBay Common Stock until the Merger is consummated. As a result, the final purchase price could differ significantly from the current estimate, which could materially impact the unaudited pro forma financial statements.The following table presents the changes to the value of the consideration for the Merger and the total preliminary estimated purchase price based on a ten percent (10%) increase and decrease in the price per share of AvalonBay Common Stock (in thousands, except the per share price of AvalonBay Common Stock) and 134,024,000 shares to be issued. Changes in share price and the value of the consideration could impact the fair value of the acquired real estate assets and related depreciation recognized in the Combined Company’s financial statements. These estimates are preliminary and subject to change upon finalization of the purchase price allocation. Price of AvalonBayCommon Stock Estimated AggregateConsideration AvalonBay share price as of July 15, 2026 $ 190.29 $ 25,503,460 Decrease of 10% $ 171.26 $ 22,953,114 Increase of 10% $ 209.32 $ 28,053,807 Note 4: Preliminary Purchase Price AllocationThe preliminary estimated purchase price has been allocated to the assets acquired and liabilities assumed for purposes of these unaudited pro forma financial statements, based on their fair values, assuming the Merger was completed on June 30, 2026. The final fair values will be based upon valuations and other analyses for which there is currently insufficient information to make a definitive valuation. Accordingly, the purchase price allocation adjustments are preliminary and have been made solely for the purpose of providing these unaudited pro forma financial statements. The final purchase price allocation will be determined after the Merger is completed and all information necessary to determine the fair value of Parent Company’s assets and liabilities has been received. As a result, the final acquisition accounting adjustments could differ materially from the unaudited pro forma adjustments presented herein.The preliminary estimated purchase price of Parent Company (as calculated in the manner described above) is allocated to the assets to be acquired and the liabilities to be assumed on the following preliminary basis (in thousands): Real Estate, net $ 33,956,040 Unconsolidated investments 355,602 Cash and cash equivalents 36,405 Restricted cash 106,975 Right-of-use lease assets 446,970 Other assets 327,855 Unsecured debt, net (5,687,854 ) Variable rate unsecured credit facility and commercial paper, net (667,780 ) Mortgage notes payable, net (1,535,522 ) Dividends payable (269,489 ) Accrued expenses and other liabilities (554,009 ) Lease liabilities (249,971 ) Redeemable Noncontrolling Interests - ERP Operating Partnership (189,941 ) Preferred shares (17,155 ) Noncontrolling Interests - Partially Owned Properties (115,807 ) Noncontrolling Interests - ERP Operating Partnership (438,859 ) Total estimated aggregate consideration $ 25,503,460 Note 5: Pro Forma Adjustments to the Unaudited Pro Forma Condensed Consolidated Balance Sheet(C)Real estate, netThe real estate assets to be acquired by AvalonBay through the Merger are reflected in the Unaudited Pro Forma Condensed Consolidated Balance Sheet based on a preliminary estimated fair value using a discounted cash flow analysis. The real estate assets acquired generally consist of land and improvements, buildings and improvements, in-place leases and furniture, fixtures and equipment. The adjustments reflected in the Unaudited Pro Forma Condensed Consolidated Balance Sheet represent the differences between the preliminary fair value of the multifamily property assets to be acquired by AvalonBay through the Merger and Parent Company’s historical balances for investment in real estate, net of accumulated depreciation. Parent Company’s historical accumulated depreciation was eliminated since the assets are recognized and presented at fair value.(D)Unconsolidated investmentsThe interests in unconsolidated investments to be acquired by AvalonBay through the Merger are reflected in the Unaudited Pro Forma Condensed Consolidated Balance Sheet based on a preliminary estimated fair value. Parent Company’s historical unconsolidated investments in real estate assets have been adjusted to their estimated fair value based on Parent Company’s ownership percentage of the estimated total fair value of the real estate assets valued using a discounted cash flow approach, net of the estimated total fair value of the related debt. Parent Company’s historical unconsolidated investments in real estate technology funds/companies have been adjusted to the estimated fair value of Parent Company’s ownership percentage in the funds’ holdings as reported by the funds/companies. Income (loss) from unconsolidated entities is not expected to be materially different as a result of these adjustments.(E)Cash and cash equivalentsIn connection with the Merger, it is expected that Parent Company will issue commercial paper to cover Merger Transaction Costs. The aggregate Transaction Costs for both AvalonBay and Parent Company are expected to be approximately $740.0 million, as described above. The pro forma adjustment to cash and cash equivalents reflects (i) the receipt of gross proceeds of $740.0 million from the issuance of commercial paper, less (ii) the original issue discount of $50.5 million associated with the issuance of the commercial paper (interest expense) and (iii) the payment of $740.0 million of Transaction Costs. The following table summarizes the pro forma adjustment (in thousands): June 30, 2026 Issuance of commercial paper $ 740,000 Original issue discount on commercial paper (interest expense) (50,470 ) Payment of Transaction Costs (740,000 ) Total pro forma adjustment $ (50,470 ) (F)Right-of-use lease assets and Lease liabilitiesThe right-of-use lease assets and lease liabilities are related to ground and corporate office leases for which Parent Company is the lessee as of June 30, 2026. These leases, which will be acquired by AvalonBay through the Merger, are reflected as if the leases are new as of June 30, 2026. The lease liabilities are initially measured at the present value of the remaining contractual lease payments using AvalonBay’s incremental borrowing rate as the discount rate, as the rates implicit in the leases and the incremental borrowing rate of the Combined Company are not currently readily determinable. The weighted average discount rate used was 5.9%. The right-of-use lease assets are initially measured at an amount equal to the lease liability, adjusted for prepaid amounts and off-market lease intangibles. As the fair value of off-market lease intangibles as of June 30, 2026 are not expected to differ materially from Parent Company’s historical off-market lease intangible balances as of June 30, 2026, the related lease expense is not expected to materially change. These amounts are preliminary and subject to change upon finalization of the fair value allocation following the completion of the Merger.(G)Other assetsThe pro forma adjustment for Other assets included the elimination of historical carrying values for balances that are not treated as separately recognized net assets as well as the fair value of Parent Company’s equity investments. The following table summarizes the pro forma adjustment (in thousands): June 30, 2026 Straight-line rents receivable $ (30,914 ) Line of credit deferred financing fees (12,710 ) Total pro forma adjustment $ (43,624 ) (H)Unsecured debt, net, Variable rate unsecured credit facility and commercial paper, net, and Mortgage notes payable, netThe pro forma adjustments to debt balances reflect the estimated fair value and are inclusive of the elimination of historical unamortized deferred financing costs and discounts of $60.1 million which will not be a component of the net assets acquired by the Combined Company. In addition, in connection with the Merger, it is expected that Parent Company will issue $740.0 million in commercial paper to cover expected Transaction Costs, as described above. The amount and form of the borrowings has not yet been finalized, and AvalonBay and Parent Company continue to evaluate available debt financing alternatives. These amounts are preliminary and subject to change upon completion of the Merger. The pro forma adjustments for debt include the following (in thousands): Elimination of Historical Amounts Recognition of Post-Merger Amounts Net Pro Forma Merger Adjustments Debt Transaction Costs Total Pro Forma Adjustments Unsecured debt, net $ 40,023 $ (354,171 ) $ (314,148 ) $ — $ (314,148 ) Variable rate unsecured credit facility and commercial paper, net 154 (220 ) (66 ) 689,530 689,464 Mortgage notes payable, net 19,971 (76,270 ) (56,299 ) — (56,299 ) $ 60,148 $ (430,661 ) $ (370,513 ) $ 689,530 $ 319,017 The unsecured debt of AvalonBay that will be assumed by ERP Operating Partnership if it consummates the post-closing merger with Merger Sub (as successor to AvalonBay following the Merger of AvalonBay with and into Merger Sub), with ERP Operating Partnership surviving such post-closing merger as the surviving entity, will rank equally with all of ERP Operating Partnership’s other present and future unsecured and unsubordinated indebtedness, but will be effectively subordinated to ERP Operating Partnership's secured indebtedness and will not be the obligation of any of ERP Operating Partnership's subsidiaries.(I)Common shares and Additional paid-in capital/General partner's capitalAs AvalonBay is the accounting acquirer in this reverse acquisition, the pro forma adjustment reflects a deemed equity issuance measured at the fair value of AvalonBay Common Stock as of July 15, 2026 with the legal capital structure of the Combined Company reflected using Equity Residential’s Common Share/limited partnership structure. As such, the 396.3 million Equity Residential Common Shares issued to AvalonBay stockholders are recorded at $0.01 par value per share, with the excess of deemed fair value over par recorded to additional paid-in capital. AvalonBay’s historical par value of $1.4 million is eliminated and Equity Residential’s existing 374.3 million Common Shares outstanding are retained at their historical par value. Additional paid-in capital for the Combined Company is comprised of AvalonBay's historical additional paid-in-capital balance of $11.7 billion and the total estimated consideration of $25.5 billion for the acquisition of Parent Company (which creates an adjustment of $15.7 billion of additional paid-in capital over Parent Company's historical balance of $9.8 billion), less $6.3 million allocated to the par value of common shares of the Combined Company.General partner's capital for the Combined Company is comprised of AvalonBay's historical general partner's capital balance of $12.0 billion (as reclassified per Note B) and the total estimated consideration of $25.5 billion for the acquisition of Parent Company (which creates an adjustment of $15.0 billion of general partner's capital over Parent Company's historical balance of $10.5 billion), less $740.0 million of Transaction Costs.The following tables summarize the pro forma adjustments (in thousands, except the Exchange Ratio): As of June 30, 2026 Common shares: AvalonBay Common Stock outstanding 141,876 Exchange Ratio to convert AvalonBay Common Stock to Equity Residential Common Shares 2.793 Equity Residential Common Shares issued to AvalonBay stockholders 396,260 Equity Residential Common Shares outstanding 374,330 Total Combined Company common shares outstanding, $0.01 par value 770,590 Par value of total Combined Company common shares outstanding $ 7,706 Historical par value of AvalonBay Common Stock outstanding (1,419 ) Adjustment to reflect par value of total common shares of Combined Company $ 6,287 As of June 30, 2026 Additional paid-in capital: Historical balance of AvalonBay additional paid-in capital $ 11,739,908 Total estimated aggregate consideration for acquisition 25,503,460 Adjustment to reflect par value of total common shares of Combined Company (6,287 ) Combined Company additional paid-in capital $ 37,237,081 As of June 30, 2026 General Partner: AvalonBay General partner's capital outstanding $ 11,983,515 Total estimated aggregate consideration for acquisition 25,503,460 Recognition of Transaction Costs (740,000 ) Combined Company General partner's capital $ 36,746,975 (J)Accumulated other comprehensive incomeRepresents the elimination of Parent Company’s historical accumulated other comprehensive income related to the deferred gains and losses on Parent Company’s forward starting swaps designated as cash flow hedges.(K)Retained earningsRepresents the elimination of Equity Residential’s historical retained earnings of $651.1 million and the recognition of $740.0 million of Transaction Costs. Retained earnings is included in general partner's capital in the AvalonBay and ERP Operating Partnership Unaudited Pro Forma Condensed Consolidated Balance Sheet.(L)Noncontrolling Interests – DownREIT Units and Partially Owned PropertiesThe pro forma adjustment represents the fair value of minority interests in a number of Parent Company’s consolidated operating properties. Historical balances of non-controlling interest in certain operating properties have been adjusted to their estimated fair value calculated based on the minority interest ownership percentage of the estimated fair value of the underlying community assets, calculated based on a discounted cash flow analysis, net of the estimated total fair value of the related debt.(M)Noncontrolling Interests – ERP Operating Partnership/Limited Partners Capital and Redeemable Noncontrolling Interests – ERP Operating Partnership/Redeemable Limited PartnersThe Noncontrolling Interests – ERP Operating Partnership/Limited Partners Capital and Redeemable Noncontrolling Interests – ERP Operating Partnership/Redeemable Limited Partners to be acquired by AvalonBay through the Merger are reflected at fair value in the Unaudited Pro Forma Condensed Consolidated Balance Sheet based on the number of ERP Operating Partnership Units outstanding as of June 30, 2026 and the price of Equity Residential Common Shares as of June 30, 2026. The adjustment to Noncontrolling Interests – ERP Operating Partnership/Limited Partners Capital reflected in the Unaudited Pro Forma Condensed Consolidated Balance Sheet represents the difference between the fair value of the Noncontrolling Interests – ERP Operating Partnership/Limited Partners Capital and Parent Company’s historical balance.Redeemable Noncontrolling Interests – ERP Operating Partnership/Redeemable Limited Partners are those where Equity Residential is required, either by contract or securities law, to deliver registered common shares. Instruments that require settlement in registered shares cannot be classified in permanent equity as it is not always completely within an issuer’s control to deliver registered shares. Therefore, settlement in cash is assumed and that responsibility for settlement in cash is deemed to fall to ERP Operating Partnership as the primary source of cash for Equity Residential, resulting in presentation in the mezzanine section of the balance sheet and are presented at the greater of book value or fair market value based on the common share price at the end of each respective reporting period. The Redeemable Noncontrolling Interests – ERP Operating Partnership/Redeemable Limited Partners were adjusted to fair market value as of June 30, 2026 on Parent Company’s historical balance sheet; therefore, no pro forma adjustment was necessary on the Unaudited Pro Forma Condensed Consolidated Balance Sheet as of that date. Note 6: Pro Forma Adjustments to the Unaudited Pro Forma Condensed Consolidated Statement of Operations(N)Total revenueNo pro forma adjustment to Parent Company’s historical revenue related to deferred straight-line rent or above- or below-market in-place leases was recorded as the majority of Parent Company’s leases have a term of one year or less and do not contain rent increases. Additionally, because residential leases reset to prevailing market rates at each annual renewal, in-place residential rents are expected to approximate current market rents at the assumed acquisition date, with any above- or below-market variance limited to a remaining lease term of approximately six months or less, resulting in an immaterial fair value adjustment. With respect to Parent Company’s commercial leases, the impact of deferred straight-line rent and above- or below-market lease intangibles on revenue are likewise expected to be immaterial.(O)Expensed transaction, development, and other costsThe expensed transaction, development, and other costs adjustment of $740.0 million for the year ended December 31, 2025 is for estimated Transaction Costs in connection with the Merger, as described above.(P)Interest expense, netParent Company’s interest expense was adjusted to reflect the (i) removal of historical interest expense related to amortization of deferred financing costs, debt issuance premiums and discounts and amortization of deferred hedging gains and losses of $7.5 million and $15.5 million, for the six months ended June 30, 2026 and the year ended December 31, 2025, respectively, and (ii) the addition of interest expense related to amortization of premiums and discounts based on the estimated fair value of the debt of $27.1 million and $54.2 million for the six months ended June 30, 2026 and the year ended December 31, 2025, respectively.The Combined Company pro forma interest expense includes estimated interest expense of $15.3 million and $35.2 million for the six months ended June 30, 2026 and the year ended December 31, 2025, respectively, related to an estimated $740.0 million commercial paper issuance to fund Transaction Costs. The issuance was assumed to have occurred on January 1, 2025. Commercial paper interest rates are variable in nature. The estimated interest expense amounts represent an approximate 4.13% and 4.75% weighted average rate for the six months ended June 30, 2026 and the year ended December 31, 2025, respectively. A 10% fluctuation in the weighted average rates would change the estimated interest expense amounts by approximately $1.5 million and $3.5 million for the six months ended June 30, 2026 and the year ended December 31, 2025, respectively. (Q)Depreciation expenseDepreciation expense was adjusted to remove $493.9 million and $1.0 billion of Parent Company’s historical depreciation expense and recognize $644.4 million and $1.9 billion of depreciation expense for the six months ended June 30, 2026 and the year ended December 31, 2025, respectively. For purposes of this adjustment, the estimated depreciation expense recognized reflects the estimated fair values of the real estate, net, the estimated components of the real estate acquired, and an estimated useful life of 30 years for building and improvements, an estimated amortization period for in-place leases of 6 months and an estimated useful life of 7 years for furniture and fixtures, consistent with AvalonBay’s useful life policy.(R)Net (income) loss attributable to noncontrolling interests – DownREIT Units and Partially Owned PropertiesAn adjustment of $1.1 million for the six months ended June 30, 2026 and $2.4 million for the year ended December 31, 2025 was made to the income allocated to noncontrolling interests in the partially owned properties that Equity Residential consolidates. The adjustment was calculated based on the net impact of the purchase accounting adjustments to depreciation expense based on the fair values of the underlying real estate.(S)Net (income) loss attributable to Noncontrolling Interests – ERP Operating Partnership/Limited PartnersAn adjustment of $1.2 million for the six months ended June 30, 2026 and $13.9 million for the year ended December 31, 2025 was made to the income allocated to the ERP Operating Partnership unitholders/limited partners based on the adjusted net income of Parent Company and changes in the estimated non-controlling interest/limited partner ownership percentage in the Combined Company. Additionally, an adjustment of $0.2 million for the six months ended June 30, 2026 and $8.3 million for the year ended December 31, 2025 was made to the income allocated to the ERP Operating Partnership unitholders/limited partners based on the estimated Transaction Costs and interest expense associated with the Merger. Note 7: Pro Forma Net Income Available to Common Shareholders and Unitholders per Share/Unit(T)Earnings per sharePro forma basic and diluted earnings per share are calculated using the weighted average number of Equity Residential Common Shares outstanding during the period as Equity Residential is the legal acquirer for the reverse acquisition. The Equity Residential Common Shares issued to AvalonBay stockholders are included in the denominator for the full period presented because the pro forma income statement assumes the Merger was consummated at the beginning of the period. The weighted average shares attributable to AvalonBay stockholders are computed by multiplying the historical weighted average of AvalonBay Common Stock outstanding by the Exchange Ratio, converting them into an Equity Residential Common Share equivalent. The unaudited pro forma adjustment to earnings per share is as follows (in thousands, except per share data and the Exchange Ratio): Six Months EndedJune 30, 2026 Year EndedDecember 31, 2025 Numerator: Net Income attributable to shareholders - basic $ 499,515 $ 470,999 Net Income attributable to shareholders $ 499,515 $ 470,999 Net Income attributable to ERP Operating Partnership 5,493 5,197 Net Income attributable to shareholders – diluted $ 505,008 $ 476,196 Denominator: Weighted average common shares – basic 766,073 775,488 Effect of dilutive securities 13,172 13,837 Weighted average common shares – diluted 779,245 789,325 Earnings per share – basic $ 0.65 $ 0.61 Earnings per share – diluted $ 0.65 $ 0.60 Six Months EndedJune 30, 2026 Year EndedDecember 31, 2025 AvalonBay historical weighted average common shares – basic 140,052 141,739 Exchange Ratio 2.793 2.793 Adjusted AvalonBay weighted average common shares - basic 391,166 395,878 Equity Residential historical weighted average common shares - basic 374,907 379,610 Combined Company weighted average common shares - basic 766,073 775,488 AvalonBay historical dilutive securities 1,271 1,087 Exchange Ratio 2.793 2.793 Adjusted AvalonBay dilutive securities 3,551 3,036 Equity Residential historical dilutive securities 9,621 10,801 Combined Company dilutive securities 13,172 13,837 Combined Company weighted average common shares - diluted 779,245 789,325 (U)Earnings per UnitPro forma basic and diluted earnings per unit are calculated using the weighted average number of ERP Operating Partnership Units outstanding during the period as ERP Operating Partnership is the legal acquirer for the reverse acquisition. The ERP Operating Partnership Units issued to AvalonBay stockholders are included in the denominator for the full period presented because the pro forma income statement assumes the Merger was consummated at the beginning of the period. The weighted average ERP Operating Partnership Units attributable to AvalonBay stockholders are computed by multiplying the historical weighted average of AvalonBay Common Stock outstanding by the Exchange Ratio, converting them into an ERP Operating Partnership Unit equivalent. The unaudited pro forma adjustment to earnings per Unit is as follows (in thousands, except per Unit data and the Exchange Ratio): Six Months EndedJune 30, 2026 Year EndedDecember 31, 2025 Numerator: Net Income attributable to unitholders - basic and diluted $ 505,008 $ 476,196 Denominator: Weighted average Units – basic 774,275 784,979 Effect of dilutive securities 4,970 4,346 Weighted average Units – diluted 779,245 789,325 Earnings per Unit – basic $ 0.65 $ 0.61 Earnings per Unit – diluted $ 0.65 $ 0.60 Six Months EndedJune 30, 2026 Year EndedDecember 31, 2025 AvalonBay historical weighted average Units – basic 140,052 141,739 Exchange Ratio 2.793 2.793 Adjusted AvalonBay weighted average Units - basic 391,166 395,878 ERP Operating Partnership historical weighted average Units - basic 383,109 389,101 Combined Company weighted average Units - basic 774,275 784,979 AvalonBay historical dilutive securities 1,271 1,087 Exchange Ratio 2.793 2.793 Adjusted AvalonBay dilutive securities 3,551 3,036 ERP Operating Partnership historical dilutive securities 1,419 1,310 Combined Company dilutive securities 4,970 4,346 Combined Company weighted average Units - diluted 779,245 789,325

EX-99.2 4 eqr-ex99_2.htm EX-99.2 EX-99.2 Exhibit 99.2 Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of AvalonBay Communities, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of AvalonBay Communities, Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule (collectively referred to as the consolidated financial statements ). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosure to which it relates. F-1 Valuation of Deferred Development Costs and Land Held for Development Description of the Matter As of December 31, 2025, the Company’s deferred development costs and land held for development totaled $73.2 million and $123.8 million, respectively, collectively “Development Rights”. As discussed in Footnote 1 of the consolidated financial statements, the Company capitalizes costs associated with its development activities to the basis of land held when future development is probable, or if the Company has either not yet acquired the land or if the project is subject to a leasehold interest, the costs are capitalized as deferred development costs. Future development is dependent upon various factors, including zoning and regulatory approvals, rental market conditions, construction costs and the availability of capital. Auditing the valuation of deferred development costs and land held for development involved a high degree of subjectivity as management’s assessment of the probability that future development will occur was highly judgmental and subject to the various factors affecting future development discussed above. The Company’s assessment of probability of future development included an analysis of the likelihood of factors outside their control that could prevent the development from occurring and factors that could cause the Company to decide not to pursue or complete the development. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process to assess the valuation of deferred development costs and land held for development. For example, we tested controls over the Company’s pursuit monitoring process and management’s review of the probability assessment related to future development. Our procedures included, among others, evaluating the Company’s determination that the future development is probable. We performed procedures to test the accuracy and completeness of the information included in the Company’s qualitative analysis by agreeing data to underlying agreements, communications, minutes of management’s quarterly development meetings, and third-party evidence, where available. We further assessed the likelihood of the Company’s ability to obtain zoning and regulatory approvals for developments by considering, among other things, the Company’s prior experience with other development projects and the current status of the future projects for which pursuit or development rights costs were capitalized or land was held for development. We also met with executives who lead the Company’s development team to further understand the probability of future development. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2002. Tysons, Virginia February 27, 2026 F-2 AVALONBAY COMMUNITIES, INC.CONSOLIDATED BALANCE SHEETS(Dollars in thousands, except per share data) December 31, 2025 December 31, 2024 ASSETS Real estate: Land and improvements $ 4,960,568 $ 4,888,146 Buildings and improvements 21,252,137 20,454,276 Furniture, fixtures and equipment 1,546,813 1,387,506 27,759,518 26,729,928 Less accumulated depreciation (8,686,084) (8,164,411) Net operating real estate 19,073,434 18,565,517 Construction in progress, including land 1,458,795 1,042,673 Land held for development 123,751 151,922 Real estate assets held for sale, net 150,262 6,950 Total real estate, net 20,806,242 19,767,062 Cash and cash equivalents 187,234 108,576 Restricted cash 165,849 158,500 Unconsolidated investments 193,441 227,320 Deferred development costs 73,237 43,675 Prepaid expenses and other assets 618,597 540,950 Right of use lease assets 147,537 154,654 Total assets $ 22,192,137 $ 21,000,737 LIABILITIES AND EQUITY Unsecured debt, net $ 7,879,380 $ 7,358,784 Variable rate unsecured credit facility and commercial paper, net 739,608 — Mortgage notes payable, net 709,564 718,465 Dividends payable 250,548 244,967 Payables for construction 92,267 85,954 Accrued expenses and other liabilities 391,973 356,987 Lease liabilities 165,200 173,282 Accrued interest payable 68,591 58,377 Resident security deposits 60,689 62,829 Total liabilities 10,357,820 9,059,645 Commitments and contingencies Equity: F-3 Preferred stock, $0.01 par value; $25 liquidation preference; 50,000,000 shares authorized at December 31, 2025 and December 31, 2024; zero shares issued and outstanding at December 31, 2025 and December 31, 2024 — — Common stock, $0.01 par value; 280,000,000 shares authorized at December 31, 2025 and December 31, 2024; 140,080,657 and 142,254,022 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively 1,401 1,422 Additional paid-in capital 11,212,296 11,314,116 Accumulated earnings less dividends 371,157 591,250 Accumulated other comprehensive income 26,486 34,304 Total stockholders' equity 11,611,340 11,941,092 Noncontrolling interests 222,977 — Total equity 11,834,317 11,941,092 Total liabilities and equity $ 22,192,137 $ 21,000,737 See accompanying notes to Consolidated Financial Statements. F-4 AVALONBAY COMMUNITIES, INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Dollars in thousands, except per share data) For the year ended December 31, 2025 2024 2023 Revenue: Rental and other income $ 3,033,683 $ 2,906,676 $ 2,760,187 Management, development and other fees 7,042 7,081 7,722 Total revenue 3,040,725 2,913,757 2,767,909 Expenses: Operating expenses, excluding property taxes 778,171 745,846 681,338 Property taxes 342,743 327,611 306,794 Expensed transaction, development and other pursuit costs, net of recoveries 10,846 18,341 33,479 Interest expense, net 259,181 226,589 205,992 Loss on extinguishment of debt, net — — 150 Depreciation expense 913,376 846,853 816,965 General and administrative expense 86,679 77,697 76,534 Casualty and impairment loss 1,276 2,935 9,118 Total expenses 2,392,272 2,245,872 2,130,370 Income from unconsolidated investments 39,691 32,231 8,436 Structured Investment Program interest income 27,476 18,451 5,018 Gain on sale of communities, net 335,713 363,300 287,424 Other real estate activity 4,131 753 174 Income before income taxes 1,055,464 1,082,620 938,591 Income tax benefit (expense) 1,135 (445) (10,153) Net income 1,056,599 1,082,175 928,438 Net (income) loss attributable to noncontrolling interests (5,298) (181) 387 Net income attributable to common stockholders $ 1,051,301 $ 1,081,994 $ 928,825 Other comprehensive income: (Loss) gain on cash flow hedges (4,488) 18,659 13,332 Cash flow hedge (gains) losses reclassified to earnings (3,330) (471) 1,360 Comprehensive income $ 1,043,483 $ 1,100,182 $ 943,517 Earnings per common share - basic: Net income attributable to common stockholders $ 7.40 $ 7.61 $ 6.56 Earnings per common share - diluted: F-5 Net income attributable to common stockholders $ 7.40 $ 7.60 $ 6.56 See accompanying notes to Consolidated Financial Statements. F-6 AVALONBAY COMMUNITIES, INC.CONSOLIDATED STATEMENTS OF EQUITY(Dollars in thousands) Common stock shares issued Commonstock Additionalpaid-incapital Accumulatedearningslessdividends Accumulatedothercomprehensive(loss) income Total stockholder's equity Noncontrolling interests Totalequity Balance at December 31, 2022 139,916,864 $ 1,400 $ 10,765,508 $ 485,221 $ 1,424 $ 11,253,553 $ — $ 11,253,553 Net income attributable to common stockholders — — — 928,825 — 928,825 — 928,825 Gain on cash flow hedges, net — — — — 13,332 13,332 — 13,332 Cash flow hedge losses reclassified to earnings — — — — 1,360 1,360 — 1,360 Noncontrolling interest activity — — — (1,217) — (1,217) — (1,217) Dividends declared to common stockholders ($6.60 per share) — — — (935,305) — (935,305) — (935,305) Issuance of common stock, net of withholdings 2,120,392 20 485,029 1,635 — 486,684 — 486,684 Repurchase of common stock, including repurchase costs (11,800) — (908) (1,003) — (1,911) — (1,911) Stock-based compensation expense — — 37,997 — — 37,997 — 37,997 Balance at December 31, 2023 142,025,456 1,420 11,287,626 478,156 16,116 11,783,318 — 11,783,318 Net income attributable to common stockholders — — — 1,081,994 — 1,081,994 — 1,081,994 Gain on cash flow hedges, net — — — — 18,659 18,659 — 18,659 Cash flow hedge gains reclassified to earnings — — — — (471) (471) — (471) Noncontrolling interest activity — — (77) — — (77) — (77) Dividends declared to common stockholders ($6.80 per share) — — — (969,345) — (969,345) — (969,345) F-7 Issuance of common stock, net of withholdings 228,566 2 (9,875) 445 — (9,428) — (9,428) Stock-based compensation expense — — 36,442 — — 36,442 — 36,442 Balance at December 31, 2024 142,254,022 1,422 11,314,116 591,250 34,304 11,941,092 — 11,941,092 Net income — — — 1,051,301 — 1,051,301 5,298 1,056,599 Loss on cash flow hedges, net — — — — (4,488) (4,488) — (4,488) Cash flow hedge gains reclassified to earnings — — — — (3,330) (3,330) — (3,330) Issuance of DownREIT Units — — — — — — 222,653 222,653 Dividends declared to noncontrolling interests ($4.69 per share) — — — — — — (4,974) (4,974) Dividends declared to common stockholders ($7.00 per share) — — — (993,683) — (993,683) — (993,683) Issuance of common stock, net of withholdings 505,354 6 71,641 (1,094) — 70,553 — 70,553 Repurchase of common stock, including repurchase costs (2,678,719) (27) (211,471) (276,617) — (488,115) — (488,115) Amortization of deferred compensation — — 38,010 — — 38,010 — 38,010 Balance at December 31, 2025 140,080,657 $ 1,401 $ 11,212,296 $ 371,157 $ 26,486 $ 11,611,340 $ 222,977 $ 11,834,317 See accompanying notes to Consolidated Financial Statements. F-8 AVALONBAY COMMUNITIES, INCCONSOLIDATED STATEMENTS OF CASH FLOWS(Dollars in thousands) For the year ended December 31, 2025 2024 2023 Cash flows from operating activities: Net income $ 1,056,599 $ 1,082,175 $ 928,438 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 913,376 846,853 816,965 Amortization of deferred financing costs and debt discount 13,685 13,280 12,732 Loss on extinguishment of debt, net — — 150 Amortization of stock-based compensation 26,458 25,373 27,142 Equity in (income) loss of, and return on, unconsolidated investments and noncontrolling interests, net of eliminations (23,610) (21,693) 5,332 Casualty and impairment loss 1,276 1,415 4,622 Expensed transaction, development and other pursuit costs, net of recoveries 10,846 18,341 33,479 Cash flow hedge (gains) losses reclassified to earnings (1,292) (471) 1,360 Gain on sale of real estate assets, net (339,954) (364,159) (287,987) Increase in accrued interest receivable (26,124) (14,582) (5,803) (Increase) decrease in prepaid expenses and other assets (3,182) (16,576) 11,580 Increase in accrued expenses, other liabilities, accrued interest payable and resident security deposits 43,027 37,922 12,019 Net cash provided by operating activities 1,671,105 1,607,878 1,560,029 Cash flows from investing activities: Development/redevelopment of real estate assets including land acquisitions and deferred development costs (1,209,454) (951,101) (901,847) Acquisition of real estate assets, including partnership interest (682,163) (464,419) (215,889) Capital expenditures - existing real estate assets (261,769) (193,348) (178,312) Capital expenditures - non-real estate assets (3,173) (4,678) (18,962) Increase (decrease) in payables for construction 6,313 (1,749) 14,901 Proceeds from sale of real estate, net of selling costs 799,419 711,279 467,096 Note receivable lending (24,079) (90,088) (82,802) Note receivable payments 15,048 237 253 Distributions from unconsolidated entities and investment sale proceeds 7,500 11,178 5,468 Unconsolidated investments (40,009) (14,175) (18,861) Net cash used in investing activities (1,392,367) (996,864) (928,955) Cash flows from financing activities: Issuance of common stock, net 86,645 10,535 496,706 Repurchase of common stock, net (488,115) — (1,911) Dividends paid (992,333) (961,914) (922,657) Net borrowings under unsecured credit facility and commercial paper 739,608 — — Repayments of mortgage notes payable, including prepayment penalties (11,465) (9,793) (47,000) Issuance of unsecured debt 1,347,312 398,788 399,756 Repayment of unsecured debt (825,000) (300,000) (750,000) Payment of deferred financing costs (23,147) (3,763) (3,964) Receipt for termination of forward interest rate swaps 4,341 16,839 8,331 Payments related to tax withholding for share-based compensation (16,713) (16,883) (10,639) Noncontrolling interests, joint venture and preferred equity transactions (13,864) (8,707) (2,981) Net cash used in financing activities (192,731) (874,898) (834,359) Net increase (decrease) in cash, cash equivalents and restricted cash 86,007 (263,884) (203,285) F-9 Cash, cash equivalents and restricted cash, beginning of year 267,076 530,960 734,245 Cash, cash equivalents and restricted cash, end of year $ 353,083 $ 267,076 $ 530,960 Cash paid during the year for interest, net of amount capitalized $ 236,549 $ 213,253 $ 187,523 See accompanying notes to Consolidated Financial Statements. F-10 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported with the Consolidated Statements of Cash Flows (dollars in thousands): December 31, 2025 December 31, 2024 December 31, 2023 Cash and cash equivalents $ 187,234 $ 108,576 $ 397,890 Restricted cash 165,849 158,500 133,070 Cash, cash equivalents and restricted cash reported in the Consolidated Statements of Cash Flows $ 353,083 $ 267,076 $ 530,960 Supplemental disclosures of non-cash investing and financing activities: During the year ended December 31, 2025: •As described in Note 4, Equity, the Company issued 183,260 shares of common stock as part of the Company's stock-based compensation plans, of which 103,332 shares related to the conversion of performance awards to shares of common stock, and the remaining 79,928 shares valued at $17,678,000 were issued in connection with new stock grants; 3,761 shares valued at $749,000 were issued through the Company's dividend reinvestment plan; 74,517 shares valued at $16,678,000 were withheld to satisfy employees' tax withholding and other liabilities; and 3,116 restricted shares with an aggregate value of $614,000 were forfeited. •The Company acquired six apartment communities, in the Dallas-Fort Worth metropolitan area, containing 1,844 apartment homes for $415,579,000, with the consideration comprised of a cash payment of $193,000,000 and the issuance of 1,059,995 units representing limited partnership interests (the “DownREIT Units”). •Common stock and DownREIT Unit dividends declared but not paid totaled $247,436,000. •The Company recorded (i) a decrease to prepaid expenses and other assets of $4,488,000 and a corresponding adjustment to accumulated other comprehensive income; and (ii) reclassified $3,330,000 of cash flow hedge gains from other comprehensive income to interest expense, net, to record the impact of the Company's derivative and hedging activity. During the year ended December 31, 2024: •The Company issued 250,806 shares of common stock as part of the Company's stock-based compensation plans, of which 146,725 shares related to the conversion of performance awards to shares of common stock, and the remaining 104,081 shares valued at $18,020,000 were issued in connection with new stock grants; 12,290 shares valued at $1,972,000 were issued in conjunction with the conversion of deferred stock awards; 3,533 shares valued at $690,000 were issued through the Company’s dividend reinvestment plan; 94,288 shares valued at $16,892,000 were withheld to satisfy employees’ tax withholding and other liabilities; and 4,408 restricted shares with an aggregate value of $801,000 were forfeited. •Common stock dividends declared but not paid totaled $243,479,000. •The Company recorded (i) an increase to prepaid expenses and other assets of $18,659,000 and a corresponding adjustment to accumulated other comprehensive income; and (ii) reclassified $471,000 of cash flow hedge gains from other comprehensive income to interest expense, net, to record the impact of the Company's derivative and hedging activity. •The Company recorded $25,719,000 of lease liabilities and offsetting right of use lease assets related to the execution of one new ground lease for a development right. F-11 During the year ended December 31, 2023: •The Company issued 153,162 shares of common stock as part of the Company's stock based compensation plans, of which 60,016 shares related to the conversion of performance awards to shares of common stock, and the remaining 93,146 shares valued at $16,552,000 were issued in connection with new stock grants; 3,454 shares valued at $619,000 were issued through the Company’s dividend reinvestment plan; 62,937 shares valued at $10,639,000 were withheld to satisfy employees’ tax withholding and other liabilities; and 2,119 restricted shares with an aggregate value of $413,000 were forfeited. •Common stock dividends declared but not paid totaled $236,133,000. •The Company recorded (i) an increase to prepaid expenses and other assets of $13,332,000 and a corresponding adjustment to accumulated other comprehensive income; and (ii) reclassified $1,360,000 of cash flow hedge losses from other comprehensive income to interest expense, net, to record the impact of the Company's derivative and hedging activity. •The Company assumed a $63,041,000 fixed rate mortgage loan in conjunction with the acquisition of Avalon West Plano. See accompanying notes to Consolidated Financial Statements. F-12 AVALONBAY COMMUNITIES, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Organization, Basis of Presentation and Significant Accounting Policies Organization and Basis of Presentation AvalonBay Communities, Inc. (the Company, which term, unless the context otherwise requires, refers to AvalonBay Communities, Inc. together with its subsidiaries) is a Maryland corporation that has elected to be treated as a real estate investment trust ( REIT ) for federal income tax purposes under the Internal Revenue Code of 1986, as amended (the Code ). The Company develops, redevelops, acquires, owns and operates multifamily communities in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. At December 31, 2025, the Company owned or held a direct or indirect ownership interest in 320 apartment communities containing 98,694 apartment homes in 11 states and the District of Columbia, of which 24 communities were under construction. The Company also owned or held a direct or indirect ownership interest in land or rights to land on which the Company expects to develop an additional 32 communities that, if developed as expected, will contain an estimated 9,032 apartment homes (unaudited). Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, certain joint venture partnerships, subsidiary partnerships structured as DownREITs, and any variable interest entities that qualify for consolidation. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for joint venture entities and subsidiary partnerships in accordance with the consolidation guidance. The Company determines first whether to follow the variable interest entity ( VIE ) or the voting interest entity ( VOE ) model for each joint venture entity. The Company then evaluates whether it should consolidate the venture. Under the VIE model, the Company consolidates an investment when it has control to direct the activities of the venture and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company's maximum exposure for its VIEs is limited to its investments in the respective VIEs and its portion of any loan guarantee. Under the VOE model, the Company consolidates an investment when (i) it controls the investment through ownership of a majority voting interest if the investment is not a limited partnership or (ii) it controls the investment through its ability to remove the other partners in the investment, at its discretion, when the investment is a limited partnership. The Company generally uses the equity method of accounting or net asset value ( NAV ) for its unconsolidated investments, including when the Company holds a noncontrolling limited partner interest in a joint venture. Any investment in excess of the Company's cost basis at acquisition or formation of an equity method venture that owns real estate, will be recorded as a component of the Company's investment in the joint venture and recognized over the life of the underlying fixed assets of the venture as a reduction to its equity in income from the venture. Investments in which the Company has little or no influence are accounted for using the measurement alternative with the carrying amount of the investment adjusted to fair value when there is an observable transaction indicating a change in fair value. Real Estate Operating real estate assets are stated at cost and consist of land and improvements, buildings and improvements, furniture, fixtures and equipment, and other costs incurred during their development, redevelopment and acquisition. Significant expenditures that improve or extend the life of an existing asset and that will benefit the Company for periods greater than a year are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. F-13 Project costs related to the development, construction and redevelopment of real estate projects (including interest and related loan fees, property taxes and other direct costs) are capitalized as a cost of the project. Indirect project costs that relate to several projects are capitalized and allocated to the projects to which they relate. Indirect costs not clearly related to development, construction and redevelopment activity are expensed as incurred. For development, capitalization (i) begins when the Company has determined that development of the future asset is probable, (ii) can be suspended if there is no current development activity underway, but future development is still probable and (iii) ends when the asset, or a portion of an asset, is ready for its intended use, or the Company's intended use changes such that capitalization is no longer appropriate. For land parcels acquired for development improved with operating real estate, the Company generally manages the improvements until all tenant obligations have been satisfied or eliminated through negotiation, and construction of new apartment communities is ready to begin. Revenue from incidental operations received from the current improvements on land parcels in excess of any incremental costs are recorded as a reduction of total capitalized costs of the respective Development Right and not as part of net income. Incidental operating costs in excess of incidental operating income are expensed in the period incurred. For redevelopment efforts, the Company capitalizes costs either (i) in advance of taking homes out of service when significant renovation of the common area has begun until the redevelopment is completed, or (ii) when an apartment home is taken out of service for redevelopment until the redevelopment is completed and the apartment home is available for a new resident. Rental income and operating costs incurred during the initial lease-up or post-redevelopment lease-up period are recognized in earnings. The Company accounts for real estate acquisitions as either an asset acquisition or a business combination. Under either model, the Company identifies and determines the fair value of any assets acquired, liabilities assumed and any noncontrolling interest in the acquiree. The Company generally views acquisitions of operating communities as asset acquisitions, which results in the capitalization of acquisition costs and the allocation of purchase price to the assets acquired and liabilities assumed, based on the relative fair value of the respective assets and liabilities. Typical assets acquired and liabilities assumed include land, building, furniture, fixtures and equipment, debt and identified intangible assets and liabilities, consisting of the value of in-place leases and leases priced above or below market. The Company utilizes various sources to determine fair value, including its own analysis of recently acquired and existing comparable properties in its portfolio and other market data. The purchase price allocation to tangible assets is reflected in real estate assets and depreciated over their estimated useful lives. Any purchase price allocation to intangible assets, other than in-place lease intangibles, is included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets and amortized over the term of the acquired intangible asset. The Company values land based on a market approach, looking to recent sales of similar properties, adjusting for differences due to location, the state of entitlement as well as the shape and size of the parcel. Improvements to land are valued using a replacement cost approach and consider the structures and amenities included for the communities and is reduced by estimated depreciation. The value for furniture, fixtures and equipment is also determined based on a replacement cost approach, considering costs for both items in the apartment homes as well as common areas and is adjusted for estimated depreciation. The fair value of buildings is estimated using the replacement cost approach, assuming the buildings were vacant at acquisition. The replacement cost approach considers the composition of structures acquired, adjusted for depreciation which considers industry standard information and estimated useful life of the acquired property. The in-place lease intangible considers the estimated cost of leasing the apartment homes as if the acquired building(s) were vacant and is determined using an average total lease-up time, the number of apartment homes and market rent considering actual leasing and industry rental rate data generated during the lease-up time. The above or below market lease intangibles represent the value of the current leases relative to market-rate leases and is based on market comparables. Given the heterogeneous nature of multifamily real estate, the fair values for the land, debt, real estate assets and in-place leases incorporate significant unobservable inputs and therefore are considered to be Level 3 prices within the fair value hierarchy. Consideration for acquisitions is typically in the form of cash unless otherwise disclosed. F-14 Depreciation is generally calculated on a straight-line basis over the estimated useful lives of the assets, which for buildings and related improvements range from seven years to 30 years and for furniture, fixtures and equipment range from three years to seven years. Noncontrolling Interests The Company classifies the carrying value of the DownREIT Units as noncontrolling interests, as the units may be redeemed by unitholders on or after April 30, 2026 for cash or common stock at the Company's election. Net income is allocated to the DownREIT Units pro-rata based on the weighted average proportion of DownREIT Units to the weighted average combined total of outstanding common stock, participating securities, and DownREIT Units for the period. Income Taxes The Company elected to be treated as a REIT for federal income tax purposes for its tax year ended December 31, 1994 and has not revoked such election. A REIT is a corporate entity which holds real estate interests and can deduct from its federally taxable income qualifying dividends it pays if it meets a number of organizational and operational requirements, including a requirement that it distribute at least 90% of its adjusted taxable income to stockholders. Therefore, as a REIT, the Company generally will not be subject to corporate level federal income tax on its taxable income if it annually distributes 100% of its taxable income to its stockholders. The states in which the Company operates have similar tax provisions which recognize the Company as a REIT for state income tax purposes. Management believes that all such conditions for the exemption from income taxes on ordinary income have been or will be met for the periods presented. Accordingly, no provision for federal and state income taxes has been made. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal corporate income taxes at regular corporate rates and may not be able to qualify as a corporate REIT for four subsequent taxable years. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed taxable income and in certain other instances. Taxable income from activities performed through taxable REIT subsidiaries ( TRS ) is subject to federal, state and local income taxes. The Company recognized income tax benefit of $1,135,000 in 2025 and income tax expense of $445,000 and $10,153,000 in 2024 and 2023, respectively, with amounts in 2023 primarily due to dispositions of residential condominiums at The Park Loggia. In addition, the Company may sell tax credits related to solar installation projects at its communities, recognizing the sales proceeds as income tax benefit in the period of sale. As of December 31, 2025 and 2024, the Company did not have any unrecognized tax positions. The Company does not believe that there will be any material changes in its unrecognized tax positions over the next 12 months. The Company is subject to examination by the respective taxing authorities for the tax years 2022 through 2024. The following summarizes the tax components of the Company's common dividends declared for the years ended December 31, 2025, 2024 and 2023 (unaudited): 2025 2024 2023 Ordinary income 74% 90% 83% 20% capital gain 9% 4% 11% Unrecaptured 1250 gain 17% 6% 6% Total 100% 100% 100% F-15 Deferred Financing Costs Deferred financing costs include expenditures necessary to obtain debt financing and are amortized on a straight-line basis, which approximates the effective interest method, over the shorter of the loan term or the related credit enhancement facility, if applicable. Unamortized financing costs are charged to earnings when debt is retired before the maturity date. Deferred financing costs, except for costs associated with line-of-credit arrangements, are presented as a direct deduction from the related debt liability. Unamortized deferred financing costs for the Company's Credit Facility and commercial paper were $18,629,000 and $13,059,000 as of December 31, 2025 and 2024, respectively, and were included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents includes all cash and liquid investments with an original maturity of three months or less from the date acquired. Restricted cash includes principal reserve funds that are restricted for the repayment of specified secured financing, amounts the Company has designated for planned 1031 exchange activity and resident security deposits. The majority of the Company's cash, cash equivalents and restricted cash are held at major commercial banks. Comprehensive Income Comprehensive income, as reflected on the Consolidated Statements of Comprehensive Income, is defined as all changes in equity during each period except for those resulting from investments by or distributions to shareholders. Accumulated other comprehensive income (loss), as reflected on the Consolidated Statements of Equity, reflects the cumulative changes in the fair value of derivatives in qualifying cash flow hedge relationships and the related reclassifications to earnings. Earnings per Common Share Basic earnings per common share is computed by dividing net income attributable to common stockholders by the weighted average number of shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common stockholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per common share. Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per common share on a diluted basis. Diluted earnings per common share was computed using the treasury stock method for performance awards, options, participating securities and forward contracts, and using the if-converted method F-16 for DownREIT Units. The Company's earnings per common share are determined as follows (dollars in thousands, except per share data): For the year ended December 31, 2025 2024 2023 Basic and diluted shares outstanding Weighted average common shares—basic 141,739,349 142,000,934 141,307,186 Effect of dilutive securities 1,087,033 457,670 336,602 Weighted average common shares—diluted 142,826,382 142,458,604 141,643,788 Calculation of Earnings per Common Share—basic Net income attributable to common stockholders $ 1,051,301 $ 1,081,994 $ 928,825 Net income allocated to unvested restricted shares (1,974) (2,069) (1,663) Net income attributable to common stockholders—basic $ 1,049,327 $ 1,079,925 $ 927,162 Weighted average common shares—basic 141,739,349 142,000,934 141,307,186 Earnings per common share—basic $ 7.40 $ 7.61 $ 6.56 Calculation of Earnings per Common Share—diluted Net income attributable to common stockholders $ 1,051,301 $ 1,081,994 $ 928,825 Net income attributable to DownREIT unitholders in consolidated partnerships 5,298 — 25 Net income—diluted $ 1,056,599 $ 1,081,994 $ 928,850 Weighted average common shares—diluted 142,826,382 142,458,604 141,643,788 Earnings per common share—diluted $ 7.40 $ 7.60 $ 6.56 Certain options to purchase shares of common stock in the amounts of 31,917, forward contracts to sell shares of common stock in the amounts of 3,680,000, and unvested performance awards in the amounts of 42,686 as of December 31, 2025 were not included in the computation of diluted earnings per common share because they were anti-dilutive for the period. Certain options to purchase shares of common stock in the amounts of 9,793 and 303,784 were outstanding as of December 31, 2024 and 2023, respectively, were not included in the computation of diluted earnings per common share because they were anti-dilutive for the period. Expensed Transaction, Development and Other Pursuit Costs The Company capitalizes costs associated with its development activities to the basis of land held when future development is probable, or if the Company has either not yet acquired the land or if the project is subject to a leasehold interest, the costs are capitalized as deferred development costs ( Development Rights ). Future development of these Development Rights is dependent upon various factors, including zoning and regulatory approval, rental market conditions, construction costs and the availability of capital. Costs incurred for pursuits for which future development is not yet considered probable are expensed as incurred. In addition, if the Company determines a Development Right is no longer probable, the Company recognizes any necessary expense to write down its basis in the Development Right. The Company expensed costs related to development pursuits not yet considered probable for development and the abandonment of Development Rights, as well as costs incurred in pursuing the acquisition or disposition of assets for which such acquisition and disposition activity did not occur, in the amounts F-17 of $10,846,000, $18,341,000 and $33,479,000 during the years ended December 31, 2025, 2024 and 2023, respectively. These costs are included in expensed transaction, development and other pursuit costs, net of recoveries on the accompanying Consolidated Statements of Comprehensive Income. The amounts for the year ended December 31, 2025 and 2024 include a write-off of $3,668,000 and $8,947,000, respectively, for one development opportunity in each year that the Company determined is no longer probable. The amount for 2023 includes write-offs of $27,455,000 related to seven Development Rights that the Company determined were no longer probable. These costs can vary greatly, and the costs incurred in any given period may be significantly different in future periods. Casualty and Impairment of Long-Lived Assets The Company evaluates its real estate and other long-lived assets for impairment when potential indicators of impairment exist. Such assets are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is not recoverable. If events or circumstances indicate that the carrying amount of an asset may not be recoverable, the Company assesses its recoverability by comparing the carrying amount of the asset to its estimated undiscounted future cash flows. If the carrying amount exceeds the aggregate undiscounted future cash flows, the Company recognizes an impairment loss to the extent the carrying amount exceeds the estimated fair value of the asset. Based on periodic tests of recoverability of long-lived assets, for the years ended December 31, 2025, 2024 and 2023, the Company did not recognize any material impairment losses. During the years ended December 31, 2025, 2024 and 2023 the Company recognized expense of $1,276,000, $2,935,000 and $9,118,000, respectively, for the property and casualty damage to certain of the Company's communities, reported as casualty and impairment loss on the accompanying Consolidated Statements of Comprehensive Income. The charge for the year ended December 31, 2025 related primarily to damage from a water pipe break at a community in Massachusetts. The charges for the year ended December 31, 2024 related to flooding and water damage at communities in California from extensive rainfall and a fire at a community in New Jersey. The charges for the year ended December 31, 2023 related to damage to certain communities in the Northeast and California regions from severe weather. The Company assesses its portfolio of land held for both development and investment for impairment if the intent of the Company changes with respect to either the development of, or the expected holding period for, the land. For the years ended December 31, 2025, 2024 and 2023, the Company did not recognize any impairment charges on its investment in land. The Company evaluates its unconsolidated investments for other than temporary impairment, considering both whether the carrying value of the investment exceeds the fair value, and the Company’s intent and ability to hold the investment to recover its carrying value. The Company also evaluates its proportionate share of any impairment of assets held by unconsolidated investments. The Company did not recognize any other than temporary impairment losses during the years ended December 31, 2025, 2024 or 2023. F-18 Assets Held for Sale and Discontinued Operations The Company presents the assets and liabilities of any communities which have been sold, or otherwise qualify as held for sale, separately in the accompanying Consolidated Balance Sheets. In addition, the results of operations for those assets that meet the definition of discontinued operations are presented as such in the accompanying Consolidated Statements of Comprehensive Income. Real estate assets held for sale are measured at the lower of the carrying amount or the fair value less the cost to sell. Upon the classification of an asset as held for sale, no further depreciation is recorded. Disposals representing a strategic shift in operations (e.g., a disposal of a major geographic area, a major line of business or a major equity method investment) are presented as discontinued operations, and for those assets qualifying for classification as discontinued operations, the specific components of net income presented as discontinued operations include net operating income, depreciation expense and interest expense, net. For periods prior to the asset qualifying for discontinued operations, the Company reclassifies the results of operations to discontinued operations. In addition, the net gain or loss (including any impairment loss) on the eventual disposal of assets held for sale will be presented as discontinued operations when recognized. A change in presentation for held for sale or discontinued operations has no impact on the Company's financial condition or results of operations. The Company combines the operating, investing and financing portions of cash flows attributable to discontinued operations with the respective cash flows from continuing operations on the accompanying Consolidated Statements of Cash Flows. The Company had three real estate asset that qualified as held for sale at December 31, 2025. Derivative Instruments and Hedging Activities The Company enters into interest rate swap and interest rate cap agreements (collectively, Hedging Derivatives ) for interest rate risk management purposes and in conjunction with certain variable rate secured debt to satisfy lender requirements. The Company does not enter into Hedging Derivatives for trading or other speculative purposes. The Company assesses the effectiveness of qualifying hedges, both at inception and on an ongoing basis. The fair values of Hedging Derivatives that are in an asset position are recorded in prepaid expenses and other assets and the fair values of Hedging Derivatives that are in a liability position are included in accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets. Fair value changes for derivatives that are not in qualifying hedge relationships are reported as a component of interest expense, net on the accompanying Consolidated Statements of Comprehensive Income. For the Hedging Derivatives that qualify as effective cash flow hedges, the Company records the cumulative changes in the Hedging Derivatives' fair value in accumulated other comprehensive income on the accompanying Consolidated Statements of Comprehensive Income. Amounts recorded in accumulated other comprehensive income will be reclassified into earnings in the periods in which earnings are affected by the hedged cash flow. The effective portion of the change in fair value of the Hedging Derivatives that qualify as effective fair value hedges is reported as an adjustment to the carrying amount of the corresponding hedged item. Receipts or payments associated with the gains and losses on the Company’s cash flow hedges of future fixed rate debt issuances are presented as a component of cash flows from financing activities in the period the hedges are terminated and the receipt or payments for the Company’s cash flow hedges of interest on variable rate debt are presented as a component of cash flows from operating activities. Payments for derivatives that are not designated in hedging relationships are presented as a component of cash flows from operating activities. See Note 11, Fair Value, for further discussion of derivative financial instruments. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to amounts in prior years' financial statements and notes to the financial statements to conform to current year presentations as a result of changes in held for sale classification, disposition activity and segment classification. F-19 Leases The Company is party to leases as both a lessor and a lessee, primarily as follows: •lessor of residential and commercial space within its apartment communities; and•lessee under (i) ground leases for land underlying current operating or development communities and certain commercial and parking facilities and (ii) office leases for its corporate headquarters and regional offices. Lessee Considerations The Company assesses whether a contract is or contains a lease based on whether the contract conveys the right to control the use of an identified asset, including specified portions of larger assets, for a period of time in exchange for consideration. The Company’s leases include both fixed and variable lease payments that are based on an index or rate such as the consumer price index (CPI) or percentage rents based on total sales. Variable lease payments are generally not included in the lease liability, but recognized as variable lease expense in the period in which they are incurred. For leases that have options to extend the term or terminate the lease early, the Company only factored the impact of such options into the lease term if the option was considered reasonably certain to be exercised. The Company determines the discount rate associated with its ground and office leases on a lease-by-lease basis using the Company’s actual borrowing rates as well as indicative market pricing for longer term rates and taking into consideration the remaining term of the lease agreements. For leases that are 12 months or less, the Company elected the practical expedient to not recognize the lease asset and liability. Lessor Considerations The Company's residential and commercial leases at its apartment communities are operating leases. For leases that include rent concessions and/or fixed and determinable rent increases, rental income is recognized on a straight-line basis over the noncancellable term of the lease, which, for residential leases, is generally one year. Some of the Company’s commercial leases have renewal options which the Company will only include in the lease term if, at the commencement of the lease, it is reasonably certain that the lessee will exercise this option. For the Company’s leases, which are comprised of a lease component and common area maintenance as a non-lease component, the Company determined that (i) the leases are operating leases, (ii) the lease component is the predominant component and (iii) all components of its operating leases share the same timing and pattern of transfer. Revenue and Gain Recognition The Company recognizes revenue for the transfer of goods and services to customers for consideration that the Company expects to receive. The majority of the Company’s revenue is derived from residential and commercial rental and other lease income, which are accounted for as discussed above, under Leases . The Company's revenue streams that are not accounted for as residential and commercial rental and other lease income include: F-20 •Management fees - The Company has investment interests in real estate joint ventures, for which the Company may manage (i) the venture, (ii) the associated operating communities owned by the ventures and/or (iii) the construction, development or redevelopment of those communities. For these activities, the Company receives asset management, property management, development and/or redevelopment fee revenue. The performance obligation is the management of the venture, community or other defined task such as the development or redevelopment of the community. While the individual activities that comprise the performance obligation of the management fees can vary day to day, the nature of the overall performance obligation to provide management service is the same and considered by the Company to be a series of services that have the same pattern of transfer to the customer and the same method to measure progress toward satisfaction of the performance obligation. The Company also provides various third party back-office, financial administrative support services. The Company recognizes revenue for fees as earned. •Non-lease related revenue - The Company recognizes revenue for items not considered to be components of a lease as earned including, but not limited to, application fees, renters insurance fees and vendor revenue sharing. •Gains or losses on sales of real estate - The Company accounts for the sale of real estate and any related gain recognition in accordance with the accounting guidance applicable to sales of real estate, which establishes standards for recognition of profit on all real estate sales transactions. The Company recognizes the sale, and associated gain or loss from the disposition when the criteria for the sale of an asset have been met, which include when (i) a contract exists and (ii) the buyer obtained control of the nonfinancial asset that was sold. The following table details the Company’s revenue disaggregated by reportable operating segment, further discussed in Note 8, Segment Reporting, for the years ended December 31, 2025, 2024 and 2023. The segments are classified based on the individual community's status at December 31, 2025 for the years ended December 31, 2025 and 2024, and at December 31, 2024 for the year ended December 31, 2023. Segment information for total revenue excludes real estate assets that were sold from January 1, 2023 through December 31, 2025, or otherwise qualify as held for sale as of December 31, 2025, as described in Note 6, Real Estate Disposition Activities. (dollars in thousands): F-21 Same Store Other Stabilized Development/Redevelopment Non-allocated (1) Total For the period ended December 31, 2025 Management, development and other fees and other ancillary items $ — $ — $ — $ 7,042 $ 7,042 Non-lease related revenue (2) 8,753 6,494 364 — 15,611 Total non-lease revenue 8,753 6,494 364 7,042 22,653 Lease income (3) 2,730,758 168,121 47,174 — 2,946,053 Total revenue $ 2,739,511 $ 174,615 $ 47,538 $ 7,042 $ 2,968,706 For the period ended December 31, 2024 Management, development and other fees and other ancillary items $ — $ — $ — $ 7,081 $ 7,081 Non-lease related revenue (2) 10,479 5,563 148 — 16,190 Total non-lease revenue 10,479 5,563 148 7,081 23,271 Lease income (3) 2,662,792 77,771 9,519 — 2,750,082 Total revenue $ 2,673,271 $ 83,334 $ 9,667 $ 7,081 $ 2,773,353 For the year ended December 31, 2023 Management, development and other fees and other ancillary items $ — $ — $ — $ 7,722 $ 7,722 Non-lease related revenue (2) 12,752 4,697 128 — 17,577 Total non-lease revenue 12,752 4,697 128 7,722 25,299 Lease income (3) 2,482,052 73,628 6,042 — 2,561,722 Total revenue $ 2,494,804 $ 78,325 $ 6,170 $ 7,722 $ 2,587,021 __________________________________(1)Represents third-party property management, developer fees and miscellaneous income and other ancillary items which are not allocated to a reportable segment.(2)Amounts include revenue streams related to leasing activities that are not considered components of a lease, and revenue streams not related to leasing activities including, but not limited to, application fees, renters insurance fees and vendor revenue sharing.(3)Represents residential and commercial rental and other lease income, as discussed above, under Leases . Due to the nature and timing of the Company’s identified revenue streams, there were no material amounts of outstanding or unsatisfied performance obligations as of December 31, 2025. Uncollectible Lease Revenue Reserves The Company assesses the collectability of its lease revenue and receivables on an ongoing basis by (i) assessing the probability of receiving all lease amounts due on a lease-by-lease basis, (ii) fully reserving for those leases where collection of substantially all of the remaining lease payments is not probable and (iii) subsequently, only recognizing revenue to the extent cash is received. F-22 If the Company determines that collection of the remaining lease payments becomes probable at a future date, the Company will recognize the cumulative revenue that would have been recorded under the original lease agreement. In addition to the specific reserves recognized, the Company also evaluates its lease receivables for collectability at a portfolio level. The Company recognizes a reserve on a portfolio level when the uncollectible revenue is probable and reasonably estimable. The Company applies this reserve to the Company’s revenue and receivables not addressed as part of the specific reserve. The Company recorded an aggregate offset to income for uncollectible lease revenue, net of amounts received from government rent relief programs, for its residential and commercial portfolios of $47,240,000, $47,046,000 and $57,906,000 for the years ended December 31, 2025, 2024 and 2023, respectively. Recently Issued and Adopted Accounting Standards In December 2023, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) 2023-09, Improvements to Income Tax Disclosures, which requires (i) a tabular rate reconciliation of the reported income tax expense (benefit) from continuing operations into specific categories, (ii) separate disclosure for any reconciling items within certain categories above a quantitative threshold, (iii) disclosure of income taxes paid disaggregated by federal, state and material jurisdictions and (iv) disclosure of income tax expense from continuing operations disaggregated by federal and state. The Company adopted the guidance as of January 1, 2025, and it did not have a material effect on the Company’s consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires the disaggregation for certain expenses presented on the face of an entity’s income statement in the entity's disclosures. Additionally, it requires the disclosure of selling expenses and descriptions of amounts not separately disaggregated. The new standard will be effective for annual reporting periods beginning January 1, 2027, and interim reporting periods beginning January 1, 2028. The Company is assessing the standard and does not expect it to have a material effect on the Company’s consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software, which updates the accounting for software implementation and development, specifically with respect to cost capitalization. The amendments replace the former model which considered prescriptive and sequential software development stages with an approach that is focused on management authorization and probability that the project will be completed and used for its intended purpose. The new standard will be effective for annual reporting periods beginning January 1, 2027, and interim reporting periods within those annual periods. The Company is assessing the standard and does not expect it to have a material effect on the Company's financial position or results of operations. 2. Interest Capitalized The Company capitalizes interest during the development and redevelopment of real estate assets. Capitalized interest associated with the Company's development and redevelopment activities totaled $50,115,000, $43,185,000 and $47,133,000 for the years ended December 31, 2025, 2024 and 2023, respectively. F-23 3. Debt The Company's debt, which consists of unsecured notes, the variable rate term loan (the Term Loan ), mortgage notes payable, the Credit Facility and Commercial Paper, each as defined below, as of December 31, 2025 and 2024 is summarized below. The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of December 31, 2025 and 2024, as shown in the accompanying Consolidated Balance Sheets (dollars in thousands) (see Note 6, Real Estate Disposition Activities ). The weighted average interest rates in the following table for secured and unsecured debt include costs of financing including debt issuance costs as well as credit enhancement and trustees' fees, the impact of interest rate hedges and mark-to-market adjustments. December 31, 2025 December 31, 2024 Fixed rate unsecured debt (1) $ 7,925,000 3.6% $ 7,400,000 3.4% Fixed rate mortgage notes payable—conventional and tax-exempt 332,602 3.9% 333,479 3.9% Variable rate mortgage notes payable—conventional and tax-exempt 390,550 4.0% 400,950 5.2% Total mortgage notes payable, unsecured debt 8,648,152 3.6% 8,134,429 3.5% Credit Facility — —% — —% Commercial paper 740,000 4.0% — —% Total principal outstanding 9,388,152 3.7% 8,134,429 3.5% Less deferred financing costs and debt discount (2) (59,600) (57,180) Total $ 9,328,552 $ 8,077,249 _________________________________(1)Includes the $550,000,000 Term Loan that has been swapped to an effective fixed rate of 4.44% using interest rate hedges.(2)Excludes deferred financing costs associated with the Credit Facility and commercial paper, which are included in Prepaid expenses and other assets on the accompanying Consolidated Balance Sheets. The availability on the Company's Credit Facility as of December 31, 2025 and 2024 was as follows (dollars in thousands): December 31, 2025 December 31, 2024 Credit Facility commitment $ 2,500,000 $ 2,250,000 Credit Facility outstanding — — Commercial paper outstanding (740,000) — Letters of credit outstanding (1) (864) (1,714) Total Credit Facility available $ 1,759,136 $ 2,248,286 _____________________________________(1)In addition, the Company had $52,584 and $45,910 outstanding in additional letters of credit unrelated to the Credit Facility as of December 31, 2025 and 2024, respectively. The following debt activity occurred during the year ended December 31, 2025: F-24 •In April 2025, the Company entered into the Seventh Amended and Restated Revolving Loan Agreement with a syndicate of banks, amending the prior credit facility, dated September 27, 2022. The amended and restated Credit Facility (i) increased the borrowing capacity under the Credit Facility from $2,250,000,000 to $2,500,000,000, and (ii) extended the term from September 2026 to April 2030. The interest rate that would be applicable to borrowings under the Credit Facility was 4.58% at December 31, 2025 and was composed of (i) the Secured Overnight Financing Rate ( SOFR ), applicable to the period of borrowing for a particular draw of funds from the Credit Facility (e.g., one month to maturity, three months to maturity, etc.), plus (ii) the current borrowing spread to SOFR of 0.705% per annum, assuming a daily SOFR borrowing rate. The borrowing spread to SOFR can vary from SOFR plus 0.65% to SOFR plus 1.40% based upon the rating of the Company's unsecured senior notes. There is also an annual facility commitment fee of 0.12% of the borrowing capacity under the Credit Facility, which can vary from 0.10% to 0.30% based upon the rating of the Company's unsecured senior notes. The Credit Facility contains a sustainability-linked pricing component which provides for interest rate margin and commitment fee reductions or increases related to certain environmental sustainability targets, specifically greenhouse gas emission reductions, with the adjustment determined annually. An annual determination under the sustainability-linked pricing component occurred in July 2025, maintaining reductions of approximately 0.02% to the interest rate margin and 0.005% to the commitment fee due to the Company's achievement of sustainability targets. On August 1, 2025, the Company amended the Credit Facility to extend the applicability of its sustainability-linked pricing component. All other terms of the Credit Facility, including its maturity date of April 2030, remain unchanged. •In April 2025, the Company entered into a $450,000,000 Term Loan which matures in April 2029. On August 1, 2025, the Company amended the Term Loan to (i) exercise its full accordion option to increase the amount of its Term Loan by $100,000,000 to $550,000,000 and (ii) extend the applicability of its sustainability-linked pricing component. During the year ended December 31, 2025, the Company drew down the $550,000,000 available under the Term Loan and entered into $550,000,000 notional amount of interest rate swaps to hedge the impact of variability in interest rates on the Term Loan. The swaps are coterminous with the Term Loan, maturing in April 2029. The Term Loan bears interest at varying levels based on (i) the SOFR applicable to the period of borrowing for a particular draw of funds from the facility, which rate is recalculated at the end of each such period if the Term Loan remains outstanding, (ii) a stated spread over SOFR that can vary from SOFR plus 0.70% to SOFR plus 1.60% per annum based upon the rating of the Company’s unsecured and unsubordinated long-term indebtedness and (iii) a sustainability spread adjustment that can range from (0.02)% to 0.02%. The current borrowing spread to SOFR under the Term Loan is 0.78% per annum, inclusive of a sustainability spread adjustment of (0.02)%. Including the impact of these swaps and transaction costs, assuming the Term Loan will be fully drawn until maturity and the Company's current borrowing spread to SOFR, the effective interest rate on borrowings under the Term Loan is fixed at 4.44%. •In April 2025, the Company increased the capacity of the Commercial Paper Program from $500,000,000 to $1,000,000,000. Under the terms of the Commercial Paper Program, the Company may issue unsecured commercial paper notes with maturities of less than one year. The program is backstopped by the Company's commitment to maintain available borrowing capacity under its unsecured credit facility in an amount equal to actual borrowings under the program. •In June 2025, the Company repaid $525,000,000 of its 3.45% coupon unsecured notes at par upon maturity. F-25 •In July 2025, the Company issued $400,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for proceeds net of underwriting fees and discounts of approximately $394,888,000, before considering the impact of other offering costs. The notes mature in August 2035 and were issued at a 5.00% coupon. The effective interest rate on the notes is 5.05%, considering the net proceeds and including the impact of offering costs and hedging activity. •In November 2025, the Company repaid $300,000,000 of its 3.50% coupon unsecured notes at par upon maturity. •In December 2025, the Company issued $400,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for proceeds net of underwriting fees and discounts of approximately $397,424,000, before considering the impact of other offering costs. The notes mature in December 2030 and were issued at a 4.35% coupon. The effective interest rate on the notes is 4.52%, considering the net proceeds and including the impact of offering costs and hedging activity. In the aggregate, secured notes payable mature at various dates from March 2027 through July 2066, and are secured by certain apartment communities (with a net carrying value of $1,208,731,000, excluding communities classified as held for sale, as of December 31, 2025). Scheduled payments and maturities of secured notes payable and unsecured debt outstanding at December 31, 2025 were as follows (dollars in thousands): Year Secured notes principal payments and maturities Unsecured debt maturities Stated interest rate ofunsecured debt 2026 $ 11,811 $ 475,000 2.95% 300,000 2.90% 2027 248,859 400,000 3.35% 2028 13,902 450,000 3.20% 400,000 1.90% 2029 126,262 450,000 3.30% 550,000 SOFR + 0.78% 2030 3,300 700,000 2.30% 400,000 4.35% 2031 3,500 600,000 2.45% 2032 4,000 700,000 2.05% 2033 5,000 350,000 5.00% 400,000 5.30% 2034 10,900 400,000 5.35% 2035 13,400 400,000 5.00% Thereafter 282,218 350,000 3.90% 300,000 4.15% 300,000 4.35% $ 723,152 $ 7,925,000 F-26 The Company's unsecured notes are redeemable at the Company's option, in whole or in part, generally at a redemption price equal to the greater of (i) 100% of their principal amount or (ii) the sum of the present value of the remaining scheduled payments of principal and interest discounted at a rate equal to the yield on U.S. Treasury securities with a comparable maturity plus a spread between 10 and 30 basis points depending on the specific series of unsecured notes, plus accrued and unpaid interest to the redemption date. The Company is subject to financial covenants contained in the Credit Facility, the Term Loan and the indentures under which the unsecured notes were issued. The principal financial covenants include the following: •limitations on the amount of total and secured debt in relation to the Company's overall capital structure;•limitations on the amount of the Company's unsecured debt relative to the undepreciated basis of real estate assets that are not encumbered by property-specific financing; and•minimum levels of debt service coverage. The Company was in compliance with these covenants at December 31, 2025. 4. Equity As of December 31, 2025 and 2024, the Company's charter had authorized for issuance a total of 280,000,000 shares of common stock and 50,000,000 shares of preferred stock. During the year ended December 31, 2025, the Company: i.issued 8,759 shares of common stock in connection with stock options exercised;ii.issued 3,761 shares of common stock through the Company's dividend reinvestment plan;iii.issued 183,260 shares of common stock in connection with restricted stock grants and the conversion of performance awards to shares of common stock;iv.issued 20,094 shares of common stock through the Employee Stock Purchase Plan; v.issued 367,113 shares of common stock through the settlement of the equity forward contracts under the CEP;vi.withheld 74,517 shares of common stock to satisfy employees' tax withholding and other liabilities;vii.canceled 3,116 shares of restricted common stock upon forfeiture; andviii.repurchased 2,678,719 shares of common stock through the 2020 Stock Repurchase Program and 2025 Stock Repurchase Program, discussed below. Deferred compensation granted under the Company's Second Amended and Restated 2009 Equity Incentive Plan (the Plan ) does not impact the Company's Consolidated Financial Statements until recognized as compensation cost. The Company has a CEP under which the Company may sell (and/or enter into forward sale agreements for the sale of) up to $1,000,000,000 of its common stock from time to time. Actual sales will depend on a variety of factors to be determined by the Company, including market conditions, the trading price of the Company's common stock and the Company's determinations of the appropriate funding sources. The Company expects that, if entered into, it will physically settle each forward sale agreement on one or more dates specified by the Company on or prior to the maturity date of that particular forward sale agreement, in which case the Company will receive aggregate net cash proceeds at settlement equal to the number of shares underlying the particular forward agreement multiplied by the forward sale price. However, the Company may also elect to cash settle or net share settle a forward sale agreement. In connection with each forward sale agreement, the Company will pay the forward seller, in the form of a reduced initial forward sale price, a commission of up to 1.5% of the sales prices of all borrowed shares of common stock sold. During the year ended December 31, 2025, the Company settled the outstanding forward contracts that were entered into under the CEP during the year ended December 31, 2024, selling 367,113 shares of common stock for proceeds, net of fees, of $81,333,000, based on the gross weighted average price of $223.27 per share. During the year ended December 31, 2025, the Company did not have any new forward sale agreements under the CEP. As of December 31, 2025, the Company had $623,997,000 remaining authorized for issuance under the program. F-27 In addition to the CEP, during the year ended December 31, 2024, the Company entered into the September 2024 Equity Offering pursuant to which we entered into forward contracts to sell 3,680,000 shares of common stock at a discount to the closing price of $226.52 per share for approximate net proceeds of $808,606,000 based on the initial forward price. The final proceeds will be determined on the date(s) of settlement and are subject to certain customary adjustments for dividends and a daily interest factor. During the year ended December 31, 2025, the Company amended each of the forward contracts related to the September 2024 Equity Offering to extend the settlement of the forward contracts to a date no later than December 31, 2026. In October 2025, the Company terminated the 2020 Stock Repurchase Program, which had $162,407,000 remaining authorized for purchase, and adopted a new 2025 Stock Repurchase Program under which the Company may acquire shares of its common stock in open market or negotiated transactions up to an aggregate purchase price of $500,000,000. During the year ended December 31, 2025, the Company repurchased 2,678,719 shares of common stock at an average price of $182.20 per share, including fees, for a total of $488,115,000 under the 2020 Stock Repurchase Program and 2025 Stock Repurchase Program. During the year ended December 31, 2024, the Company had no repurchases under the 2020 Stock Repurchase Program. During the year ended December 31, 2023, the Company repurchased 11,800 shares of common stock at an average price of $161.96 under the 2020 Stock Repurchase program. As of December 31, 2025, the Company had $163,769,000 remaining authorized for purchase under the 2025 Stock Repurchase Program. 5. Investments Investments in Consolidated Real Estate Entities Details regarding communities acquired in 2025, 2024 and 2023, are summarized in the following table (dollars in thousands): Community name Location Number of communities Apartment Homes Purchase price Commercial square feet Avalon Hill Country Austin, TX 1 554 $ 136,000 — Avalon Wolf Ranch Georgetown, TX 1 303 51,000 — eaves Twin Creeks (1) Allen, TX 1 216 44,784 — Avalon Benbrook (1) Benbrook, TX 1 301 60,194 — Avalon Castle Hills (1) Lewisville, TX 1 276 65,491 — Avalon Frisco (1) Frisco, TX 1 330 80,419 — Avalon Frisco North (1) Frisco, TX 1 349 88,606 — eaves North Dallas (1) Dallas, TX 1 372 76,085 — Avalon at Palisades Charlotte, NC 1 274 72,300 — Avalon Coconut Creek Coconut Creek, FL 1 270 99,000 — eaves Redmond Campus II Redmond, WA 1 40 15,650 — Avalon Townhome Collection Brier Creek Durham, NC 1 93 36,500 — Total 2025 acquisitions 12 3,378 $ 826,029 — Total 2024 acquisitions 6 1,441 $ 460,100 1,700 Total 2023 acquisitions 3 1,131 $ 277,200 — (1) Included in the transaction to acquire six apartment communities in the Dallas-Fort Worth metropolitan area during the year ended December 31, 2025. During the year ended December 31, 2025, the Company acquired the six apartment communities in the Dallas-Fort Worth metropolitan area included in the list above, containing 1,844 apartment homes for $415,579,000. The consideration was comprised of a cash payment of $193,000,000 and the final shares issued, adjusted for rounding, of 1,059,995 DownREIT Units, F-28 which were valued based on the closing price of the Company's common stock on the acquisition date. The DownREIT Units are entitled to receive distributions at the same rate as dividends on a share of the Company’s common stock (pro rated for the time outstanding during the first quarter of issuance). Beginning on April 30, 2026, holders of DownREIT Units may present some or all of their units for redemption, being entitled to receive a cash amount per unit that is related to the then fair market value of the Company’s common stock, except that in lieu of such cash redemption the Company may elect to redeem units in exchange for an equal number of shares of the Company’s common stock. In addition, during the year ended December 31, 2025, the Company acquired its joint venture partner's 50% interest in Avalon Alderwood Place, a 328 home community in Lynnwood, WA for a purchase price of $71,250,000. With the buyout of the joint venture partner's interest, Avalon Alderwood Place is now a wholly owned community and consolidated for financial reporting purposes. Structured Investment Program The Company operates a Structured Investment Program (the SIP ), an investment platform through which the Company provides mezzanine loans or preferred equity to third-party multifamily developers. During the year ended December 31, 2025, the Company entered into two additional commitments, agreeing to provide an investment of up to $48,000,000 in multifamily development projects in California and Southeast Florida. As of December 31, 2025, the Company had nine commitments to fund up to $239,585,000 in the aggregate. The Company's investment commitments have a weighted average rate of return of 11.7% and a weighted average initial maturity date of May 2027. As of December 31, 2025 and 2024, the Company had funded $210,628,000 and $186,549,000 of its commitments, respectively. The Company recognized interest income of $27,172,000, $16,022,000 and $6,189,000 for the years ended December 31, 2025, 2024 and 2023, respectively, from the SIP. Interest income and any change in the expected credit loss are included as a component of Structured Investment Program interest income on the accompanying Consolidated Statements of Comprehensive Income. The Company evaluates each SIP commitment to determine the classification as a loan or an investment in a real estate development project. As of December 31, 2025, all of the SIP commitments are classified as loans. The Company includes amounts outstanding under the SIP as a component of prepaid expenses and other assets on the accompanying Consolidated Balance Sheets. The Company evaluates the credit risk for each commitment on an ongoing basis, estimating the reserve for credit losses using relevant available information from internal and external sources. Market-based historical credit loss data provides the basis for the estimation of expected credit losses, with adjustments, if necessary, for differences in current commitment-specific risk characteristics, such as the amount of equity capital provided by a borrower, amount of senior debt secured by the project, nature of the real estate being developed or other factors. Unconsolidated Investments The Company accounts for its investments in unconsolidated entities under the equity method of accounting, NAV, or under the measurement alternative, as discussed in Note 1, Organization, Basis of Presentation and Significant Accounting Policies, under Principles of Consolidation. As of December 31, 2025, the Company had investments in four unconsolidated entities with real estate holdings, with ownership interests ranging from 20.0% to 28.6%, coupled with other unconsolidated investments including investments in third-party property technology and sustainability focused companies through investment management funds. The significant accounting policies of the unconsolidated investments are consistent with those of the Company in all material respects. Certain of these investments are subject to various buy‑sell provisions or other rights which are customary in real estate joint venture agreements. The Company and its partners in these entities may initiate these provisions to either sell the Company's interest or acquire the interest from the Company's partner. The Company is responsible for the day-to-day operations of the unconsolidated communities below and is the management agent subject to the terms of management agreements for all communities except for Brandywine Apartments of Maryland, LLC, which is managed by a third party. The following presents the Company's unconsolidated investments for the years ended December 31, 2025, 2024 and 2023, including significant activities during those years: F-29 Legacy JV—As part of the Archstone Acquisition the Company entered into a limited liability company agreement with Equity Residential, through which it assumed obligations of Archstone in the form of preferred interests, some of which were governed by tax protection arrangements (the Legacy JV ). The Company has a 40.0% interest in the Legacy JV. During the years ended December 31, 2025, the Legacy JV redeemed the remaining outstanding preferred interest, with the Company contributing its proportionate share of $13,864,000 to the Legacy JV. During the years ended December 31, 2024 and 2023, the Legacy JV redeemed certain of the preferred interests and paid accrued dividends, for which the Company contributed $1,320,000 and $940,000, respectively. At December 31, 2025, after redemption, the Legacy JV had no remaining outstanding preferred interests. NYTA MF Investors LLC ( NYC Joint Venture )—During 2018, the Company contributed five wholly-owned communities containing an aggregate of 1,301 apartment homes and 58,000 square feet of commercial space, located in New York City, NY, to a newly formed joint venture with the intent to own and operate the communities. The Company retained a 20.0% equity interest in the venture with the partners sharing in returns in accordance with their ownership interests. NYC Joint Venture has outstanding $394,734,000 fixed rate mortgage loans that are payable by the venture. The Company has not guaranteed the debt of NYC Joint Venture, nor does the Company have any obligation to fund this debt should NYC Joint Venture be unable to do so. MVP I, LLC—During 2004, the Company entered into a joint venture agreement with an unrelated third-party to develop Avalon at Mission Bay II, an apartment community located in San Francisco, CA, which completed construction during 2006 and contains 313 apartment homes. The Company has a 25.0% equity interest in the venture. During the year ended December 31, 2025, MVP I, LLC repaid its $103,000,000 outstanding fixed rate mortgage loan at par upon maturity. The equity investors contributed capital in proportion to their ownership interests to repay the outstanding loan. Brandywine Apartments of Maryland, LLC ( Brandywine )—The Company acquired its interest in Brandywine as part of the Archstone Acquisition. Brandywine owns a 305 apartment home community located in Washington, D.C. Brandywine is comprised of five members who hold various interests in the joint venture, with the Company having a 28.6% equity interest in Brandywine. Brandywine had an outstanding $17,651,000 fixed rate mortgage loan that is payable by the venture. The Company has not guaranteed the debt of Brandywine, nor does the Company have any obligation to fund this debt should Brandywine be unable to do so. Avalon Alderwood MF Member, LLC—During 2019, the Company entered into a joint venture to develop, own, and operate Avalon Alderwood Place, an apartment community located in Lynnwood, WA, which completed construction during 2022 and contains 328 apartment homes. The Company owned a 50% interest in the venture prior to acquiring its joint venture partner's 50% interest during the year ended December 31, 2025 for a purchase price of $71,250,000 accounted for under the cost accumulation method. With the buyout of the joint venture partner's interest, Avalon Alderwood Place is now a wholly owned community and consolidated for financial reporting purposes. Arts District Joint Venture—During 2020, the Company entered into a joint venture to develop, own, and operate AVA Arts District, an apartment community located in Los Angeles, CA, which completed construction and contains 475 apartment homes and 57,000 square feet of commercial space. As of December 31, 2025, the Company has a 25.0% interest in the venture. In June 2025, the Arts District joint venture secured a variable rate loan of up to $173,000,000. The outstanding borrowing is subject to an interest rate cap, which will limit the interest rate to 8.2%, based on the current borrowing spread. The loan matures in July 2028 and has two one-year extension options, subject to certain conditions. The joint venture used the proceeds to repay its outstanding $158,735,000, variable rate construction loan which was scheduled to mature in August 2025. The Company has provided the lender a partial payment guarantee for 25% of the loan's maximum borrowing capacity, on behalf of the venture. Any amounts payable under the 25% loan guarantee by the Company are obligations of the joint venture partners in proportion to their ownership interest, and in the event the Company is obligated to perform under its loan guarantee, its joint venture partner is obligated to reimburse the Company for 75% of amounts paid. As of December 31, 2025, the loan had an outstanding principal balance of $162,104,000. The venture is an unconsolidated VIE as the Company is not the primary beneficiary due to shared control and decision making with its venture partner. The Company and its venture partner share decision making authority for all significant aspects of the venture's activities including, but not limited to, changes in ownership, changes to the development plan or budget, and major operating decisions including annual business plans. F-30 Property Technology and Environmental Investments—The Company has invested $72,428,000 in various third-party property technology and sustainability focused companies directly and indirectly through investment management funds. The Company’s interest in each individual investment is minor such that the Company does not have influence over operating or financial policies of the investments. In addition, as of December 31, 2025, the Company had $46,287,000 in outstanding equity commitments, with the timing and amount for these commitments to be fulfilled dependent on if, and when, investment opportunities are identified by the respective funds. During the years ended December 31, 2025, 2024 and 2023, the Company recognized realized and unrealized gains of $39,247,000, $33,137,000 and $4,161,000, respectively, related to these investments, which was reported as a component of income from unconsolidated investments on the accompanying Consolidated Statements of Comprehensive Income. 6. Real Estate Disposition Activities Details regarding the real estate sales, which resulted in a net gain in accordance with GAAP of $335,713,000, excluding residential condominiums at The Park Loggia and post disposition gain (loss) true ups, are summarized in the following table (dollars in thousands): Community name Location Period of sale Apartment Homes Grosssales price Gain (Loss) on disposition (1) Commercial square feet Avalon Wilton on River Road Wilton, CT Q1 2025 102 $ 65,100 $ 56,476 — Avalon Wesmont Station I & II Wood-Ridge, NJ Q2 2025 406 161,500 99,636 18,000 Avalon at Gallery Place Washington D.C. Q3 2025 203 87,100 63,026 9,000 Avalon First and M Washington D.C. Q3 2025 469 181,750 41,499 4,000 AVA NoMa Washington D.C. Q3 2025 438 142,480 31,051 7,000 Avalon Brooklyn Bay Brooklyn, NY Q3 2025 180 74,500 (1,668) — Archstone Redmond Lakeview Redmond, WA Q3 2025 166 63,250 34,454 — AVA H Street Washington D.C. Q3 2025 138 36,000 12,175 — Other real estate Multiple 2025 N/A — 4,241 — Total of 2025 asset sales 2,102 $ 811,680 $ 340,890 38,000 Total of 2024 asset sales 1,532 $ 726,200 $ 363,208 24,000 Total of 2023 asset sales 987 $ 446,000 $ 287,587 27,000 (1) Gain (Loss) on disposition was reported in gain on sale of communities, net on the accompanying Consolidated Statements of Comprehensive Income. As of December 31, 2025, the Company had three real estate assets that qualified as held for sale. 7. Commitments and Contingencies Employment Agreements and Arrangements The standard restricted stock, option and performance award agreements used by the Company in its compensation program provide that upon an employee's termination without cause or the employee's Retirement (as defined in the agreement), (i) all outstanding stock options and restricted shares of stock held by the employee will vest, and the employee will have up to 12 months or until the fifth anniversary of the grant date, if later, or until the option expiration date, if earlier, to exercise any options F-31 then held and (ii) a pro rata share (based on the portion of the performance period that has been completed) of performance awards that have completed at least one year of their performance period shall vest, with settlement to occur at the end of the performance period in accordance with achievement thereunder. Under the agreements, Retirement generally means a termination of employment and other business relationships, other than for cause, after attainment of age 50, provided certain conditions are met, including that (i) the employee has worked for the Company for at least 10 years, (ii) the employee's age at Retirement plus years of employment with the Company equals at least 70 and (iii) the employee provides at least six months written notice of intent to retire. If a sale event (as defined in the agreement) of the Company occurs, all outstanding multiyear performance awards will vest at their target value and will settle. The Company also has an Officer Severance Program (the “Program”). Under the Program, in the event an officer who is not otherwise covered by a severance arrangement is terminated (other than for cause), or chooses to terminate his or her employment for good reason (as defined in the agreement), in either case in connection with or within 24 months following a sale event (as defined in the agreement) of the Company, such officer will generally receive a cash lump sum payment equal to a multiple of the officer's covered compensation (base salary plus annual cash bonus). The multiple is one time for vice presidents and senior vice presidents, two times for executive vice presidents and three times for the chief executive officer. The officer's restricted stock, options and performance awards would also vest. Costs related to the Program are deferred and recognized over the requisite service period when considered by management to be probable and estimable. Legal Contingencies The Company recognizes a loss associated with contingent legal matters when the loss is probable and estimable. In 2022 and early 2023, the Company was named as a defendant in cases brought by private litigants alleging antitrust violations by RealPage, Inc. and owners and/or operators of multifamily housing which utilize revenue management systems provided by RealPage, Inc. The Company engaged with the plaintiffs' counsel to explain why it believed that these cases were without merit as they pertained to the Company. Following these discussions, the plaintiffs filed a notice of voluntary dismissal in July 2023, which resulted in the Company being dismissed without prejudice from these cases. Subsequently, on November 1, 2023, the District of Columbia filed a lawsuit in the Superior Court of the District of Columbia against RealPage, Inc. and a number of owners and/or operators of multifamily housing in the District of Columbia, including the Company, alleging that the defendants violated the District of Columbia Antitrust Act by unlawfully agreeing to use RealPage, Inc. revenue management systems and sharing sensitive data (the D.C. Antitrust Litigation ). The court has denied the Company’s motions to dismiss and for judgment on the pleadings.On January 15, 2025, the Office of the Attorney General of the State of Maryland filed a lawsuit similar to the D.C. Antitrust Litigation in the Circuit Court for Prince George’s County, Maryland in which RealPage, Inc. and a number of owners and/or operators of multifamily properties in Maryland, including the Company, have been named and alleged to have violated state antitrust law (the “Maryland Antitrust Litigation”). On February 28, 2025, the Company filed a motion to dismiss. On April 23, 2025, the Attorney General of the State of New Jersey and the New Jersey Division of Consumer Affairs filed a lawsuit similar to the D.C. Antitrust Litigation and the Maryland Antitrust Litigation in the U.S. District Court for the District of New Jersey. The lawsuit alleges that RealPage, Inc. and a number of owners and/or operators of multifamily properties in New Jersey, including the Company, violated federal and state antitrust laws and the state consumer fraud law (the “New Jersey Antitrust Litigation”) by unlawfully agreeing to use RealPage, Inc. revenue management systems and other related actions. On July 29, 2025, the Company filed a motion to dismiss. While the Company intends to vigorously defend against the D.C. Antitrust Litigation, the Maryland Antitrust Litigation and the New Jersey Antitrust Litigation, the Company is unable to predict the outcome or estimate the amount of loss, if any, that may result from the lawsuits. The Company is involved in various other claims and/or administrative proceedings that arise in the ordinary course of its business. While no assurances can be given, the Company does not currently believe that any of these other outstanding litigation matters, individually or in the aggregate, will have a material adverse effect on its financial condition or results of operations. F-32 Lease Obligations The Company owns seven apartment communities, two commercial properties and one development community located on land subject to ground leases expiring between July 2046 and May 2123. The Company has purchase options for all ground leases expiring prior to 2062. The ground leases for six of the seven apartment communities, the two commercial properties and one development community are operating leases, with rental expense recognized on a straight-line basis over the lease term. In addition, the Company is party to 13 leases for its corporate and regional offices with varying terms through 2033, all of which are operating leases. During the year ended December 31, 2025, the Company did not enter into any new ground leases. During the year ended December 31, 2024, the Company entered into a new ground lease at Avalon Mission Valley, a development community in San Diego, CA, expiring May 2123, resulting in minimum lease payments over the term of the lease of $155,600,000. During the year ended December 31, 2025, the Company reached a construction milestone under the ground lease which activated a completion guaranty, obligating the Company to complete construction of the community and certain off-site infrastructure improvements prior to May 2030. As of December 31, 2025 and 2024, the Company had total operating lease assets of $119,888,000 and $126,572,000, respectively, and lease obligations of $145,319,000 and $153,333,000, respectively, reported as components of right of use lease assets and lease liabilities, respectively, on the accompanying Consolidated Balance Sheets. The Company incurred costs of $14,827,000, $16,298,000 and $16,342,000 for the years ended December 31, 2025, 2024 and 2023, respectively, related to operating leases. The Company has one apartment community located on land subject to a ground lease and four leases for portions of parking garages adjacent to apartment communities, that are finance leases. As of December 31, 2025 and 2024, the Company had total finance lease assets of $27,649,000 and $28,082,000, respectively, and total finance lease obligations of $19,881,000 and $19,949,000, respectively, reported as components of right of use lease assets and lease liabilities on the accompanying Consolidated Balance Sheets. The following table details the weighted average remaining lease term and discount rates for the Company’s ground and office leases: Weighted-average remaining lease term - finance leases 20 years Weighted-average remaining lease term - operating leases 52 years Weighted-average discount rate - finance leases 4.63% Weighted-average discount rate - operating leases 5.20% The following table details the future minimum payments of the Company's current leases as of December 31, 2025 (dollars in thousands): Operating Leases Financing Leases 2026 $ 15,653 $ 1,091 2027 15,732 1,095 2028 14,838 1,096 2029 13,887 1,099 2030 12,742 1,101 Thereafter 392,364 33,562 Total 465,216 39,044 Less discount for time value (319,897) (19,163) Lease liability $ 145,319 $ 19,881 F-33 8. Segment Reporting The Company's reportable operating segments include Same Store, Other Stabilized and Development/Redevelopment. Annually as of January 1, the Company determines which of its communities fall into each of these categories and generally maintains that classification throughout the year for the purpose of reporting segment operations, unless disposition or redevelopment plans regarding a community change. •Same Store is composed of consolidated communities where a comparison of operating results from the prior year to the current year is meaningful as these communities were owned and had stabilized occupancy as of the beginning of the respective prior year. For the year ended December 31, 2025, Same Store communities are consolidated for financial reporting purposes, had stabilized occupancy as of January 1, 2024, are not conducting or are not expected to conduct substantial redevelopment activities and are not held for sale as of December 31, 2025. A community is considered to have stabilized occupancy at the earlier of (i) attainment of 90% physical occupancy or (ii) the one year anniversary of completion of development or redevelopment. •Other Stabilized is composed of completed consolidated communities that the Company owns and that are not Same Store but that had stabilized occupancy, as defined above, as of January 1, 2025, or which were acquired during the years ended December 31, 2025 or 2024. Other Stabilized excludes communities that are conducting or are probable to conduct substantial redevelopment activities within the fiscal year. •Development/Redevelopment is composed of (i) consolidated communities that are either currently under construction, or were under construction during the fiscal year, which may be partially or fully complete and operating, (ii) consolidated communities where substantial redevelopment is in progress or is probable to begin during the fiscal year and (iii) communities that have been complete for less than one year and did not have stabilized occupancy, as defined above, as of January 1, 2025. In addition, the Company owns land for future development and has other corporate assets that are not allocated to an operating segment. The Company's segment disclosures present the measure(s) used by the Chief Operating Decision Maker ( CODM ) for assessing each segment's performance. The Company's CODM is comprised of several members of its executive management team, including its Chief Executive Officer and President, Chief Financial Officer, Chief Investment Officer, Chief Operating Officer, and Executive Vice President- Portfolio and Asset Management. The CODM uses net operating income ( NOI ) as the primary financial measure for Same Store communities and Other Stabilized communities. NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excluding corporate-level income (including management, development and other fees), property management and other indirect operating expenses, net of corporate income, expensed transaction, development and other pursuit costs, net of recoveries, interest expense, net, loss on extinguishment of debt, net, general and administrative expense, income from unconsolidated investments, Structured Investment Program interest income, depreciation expense, income tax expense (benefit), casualty and impairment loss, gain on sale of communities, net, other real estate activity and net operating income from real estate assets sold or held for sale. The CODM evaluates the Company's financial performance on a consolidated residential and commercial basis. The commercial results attributable to the non-apartment components of the Company's mixed-use communities and other nonresidential operations represent 1.6%, 1.7% and 1.8% of total NOI for the years ended December 31, 2025, 2024 and 2023, respectively. Although the Company considers NOI a useful measure of a community's or communities' operating performance, NOI should not be considered an alternative to net income or net cash flow from operating activities, as determined in accordance with GAAP. NOI excludes a number of income and expense categories as detailed in the reconciliation of NOI to net income and consistent with how the Company's CODM evaluates total NOI. F-34 A reconciliation of NOI to net income for years ended December 31, 2025, 2024 and 2023 is as follows (dollars in thousands): For the year ended December 31, 2025 2024 2023 Net income $ 1,056,599 $ 1,082,175 $ 928,438 Property management and other indirect operating expenses, net of corporate income 147,548 162,594 134,312 Expensed transaction, development and other pursuit costs, net of recoveries 10,846 18,341 33,479 Interest expense, net 259,181 226,589 205,992 Loss on extinguishment of debt, net — — 150 General and administrative expense 86,679 77,697 76,534 Income from unconsolidated investments (39,691) (32,231) (8,436) Structured Investment Program interest income (27,476) (18,451) (5,018) Depreciation expense 913,376 846,853 816,965 Income tax (benefit) expense (1,135) 445 10,153 Casualty and impairment loss 1,276 2,935 9,118 Gain on sale of communities, net (335,713) (363,300) (287,424) Other real estate activity (4,131) (753) (174) Net operating income from real estate assets sold or held for sale (46,410) (92,814) (123,303) Net operating income $ 2,020,949 $ 1,910,080 $ 1,790,786 The following is a summary of NOI from real estate assets sold or held for sale for the periods presented (dollars in thousands): For the year ended December 31, 2025 2024 2023 Rental income from real estate assets sold or held for sale $ 72,019 $ 140,404 $ 180,888 Operating expenses from real estate assets sold or held for sale (25,609) (47,590) (57,585) Net operating income from real estate assets sold or held for sale $ 46,410 $ 92,814 $ 123,303 The primary performance measure for communities under development or redevelopment depends on the stage of completion. While under development, management monitors actual construction costs against budgeted costs as well as lease-up pace and rent levels compared to budget. The following table details the Company's segment information as of the dates specified (dollars in thousands). The segments are classified based on the individual community's status at December 31, 2025 for the years ended December 31, 2025 and 2024 and at December 31, 2024 for the year ended December 31, 2023. Segment information for the years ended December 31, 2025, 2024 and 2023 has been adjusted to exclude the real estate assets that were sold from January 1, 2023 through December 31, 2025, or otherwise qualify as held for sale as of December 31, 2025, as described in Note 6, Real Estate Disposition Activities. F-35 For the year ended December 31, 2025 Same Store Other Stabilized Development / Redevelopment Total (1) (2) Total Revenue $ 2,739,511 $ 174,615 $ 47,538 $ 2,961,664 Same Store Operating Expense Property Taxes (306,405) (306,405) Payroll (156,693) (156,693) Repairs & Maintenance (159,930) (159,930) Utilities (112,313) (112,313) Office Operations (62,249) (62,249) Insurance (42,098) (42,098) Marketing (16,929) (16,929) Same Store Operating Expense (856,617) — — (856,617) Non-Same Store Operating Expense — (61,014) (23,084) (84,098) Total Expenses (856,617) (61,014) (23,084) (940,715) Total NOI $ 1,882,894 $ 113,601 $ 24,454 $ 2,020,949 Gross Real Estate $ 23,850,464 $ 2,592,636 $ 2,675,257 $ 29,118,357 For the year ended December 31, 2024 Same Store Other Stabilized Development / Redevelopment Total (1) (2) Total Revenue $ 2,673,271 $ 83,334 $ 9,667 $ 2,766,272 Same Store Operating Expense Property Taxes (303,406) (303,406) Payroll (150,476) (150,476) Repairs & Maintenance (146,516) (146,516) Utilities (106,687) (106,687) Office Operations (62,250) (62,250) Insurance (39,434) (39,434) Marketing (15,259) (15,259) Same Store Operating Expense (824,028) — — (824,028) Non-Same Store Operating Expense — (26,305) (5,859) (32,164) Total Expenses (824,028) (26,305) (5,859) (856,192) Total NOI $ 1,849,243 $ 57,029 $ 3,808 $ 1,910,080 Gross Real Estate $ 23,563,613 $ 1,618,830 $ 1,519,907 $ 26,702,350 For the year ended December 31, 2023 Same Store Other Stabilized Development / Redevelopment Total (1) (2) Total Revenue $ 2,494,804 $ 78,325 $ 6,170 $ 2,579,299 Same Store Operating Expense Property Taxes (278,381) (278,381) Payroll (145,542) (145,542) Repairs & Maintenance (135,751) (135,751) F-36 Utilities (88,642) (88,642) Office Operations (61,676) (61,676) Insurance (34,941) (34,941) Marketing (14,151) (14,151) Same Store Operating Expense (759,084) — — (759,084) Non-Same Store Operating Expense — (24,587) (4,842) (29,429) Total Expenses (759,084) (24,587) (4,842) (788,513) Total NOI $ 1,735,720 $ 53,738 $ 1,328 $ 1,790,786 Gross Real Estate $ 22,236,978 $ 1,269,462 $ 1,600,314 $ 25,106,754 ________________________(1)Does not include non-allocated revenue. Non-allocated revenue represents third-party property management, developer fees and miscellaneous income and other ancillary items which are not allocated to a reportable segment. Non-allocated revenue is $7,042, $7,081 and $7,722 for the years ended December 31, 2025, 2024 and 2023, respectively. (2)Does not include non-allocated gross real estate and land held for development. Non-allocated gross real estate is $99,952, $118,341 and $70,822 for the years ended December 31, 2025, 2024 and 2023, respectively. Land held for development gross real estate is $123,751, $151,922 and $199,062 for the years ended December 31, 2025, 2024 and 2023, respectively. 9. Stock-Based Compensation Plans The Company's Plan includes an authorization to issue shares of the Company's common stock, par value $0.01 per share. At December 31, 2025, the Company had 4,497,534 shares remaining available to issue under the Plan, exclusive of shares that may be issued to satisfy currently outstanding awards such as stock options or performance awards. The Plan provides for equity awards to associates, officers, non-employee directors and other key personnel of the Company and its subsidiaries in the form of restricted stock, restricted stock units, stock options that qualify as incentive stock options ( ISOs ) under Section 422 of the Code, non-qualified stock options, stock appreciation rights and performance awards, among others. The Plan expires in 2027, however before its expiration the Company expects to amend the plan or adopt a new plan to allow for continued grants of equity awards. The Company's share-based compensation framework includes annual restricted stock awards and multi-year performance awards (the Performance Awards ). The annual restricted stock vests over a three-year period at one-third per year. For annual restricted stock awards, in lieu of restricted stock, an officer may elect to receive up to 100% of the award value, in increments of 25%, in the form of stock options, which vests consistent with the restricted stock awards. Annually, the Company grants a target number of performance awards, with the ultimate award determined by the total shareholder return of the Company's common stock and/or operating performance metrics, measured over a performance period of three years. Performance units earned at the end of the measurement period are settled in fully vested shares of common stock and a payment of a cash amount representing accrued dividends on earned performance awards. The Company granted supplemental stock options in February 2021, that have a ten-year term and cliff vested on March 1, 2023. The options were granted at an exercise price that equaled the closing stock price on the grant date with recipients having 12 months to exercise the option if terminated without cause and will have until the expiration date to exercise the options if they retire. For Performance Awards, after the first year of the performance period, if an employee's employment terminates on account of death, disability, retirement, or termination without cause, the employee's target grant will be pro-rated based on the employee's service time during the performance period. The final payout is based on actual performance, at which time the units will be converted into shares and a payment of a cash amount for accrued dividends based on actual performance. For other terminating events, performance awards are generally forfeited. Information with respect to stock options granted under the Plan is as follows: F-37 Options Weighted averageexercise priceper option Options Outstanding at December 31, 2022 293,813 $ 181.85 Granted (1) 15,744 177.83 Exercised (5,773) 163.56 Forfeited — — Options Outstanding at December 31, 2023 303,784 $ 181.99 Granted (1) 13,759 172.11 Exercised (41,619) 179.89 Forfeited — — Expired (5,062) 180.32 Options Outstanding at December 31, 2024 270,862 $ 181.84 Granted (1) 9,473 221.58 Exercised (8,759) 180.32 Forfeited — — Options Outstanding at December 31, 2025 271,576 $ 183.28 Options Exercisable: December 31, 2023 279,894 $ 180.97 December 31, 2024 246,877 $ 181.82 December 31, 2025 249,486 $ 182.29 __________________________________(1)All options are from recipient elections to receive a portion of earned restricted stock awards in the form of stock options. The Company used the Black-Scholes Option Pricing model to determine the grant date fair value of options. The assumptions used are as follows: 2025 Dividend yield 3.5% Estimated volatility 30.1% Risk free rate 4.06% Expected life of options 5 years Estimated fair value $50.92 The following summarizes the exercise prices and contractual lives of options outstanding as of December 31, 2025: The PlanNumber of Options Range—Exercise Price Weighted AverageRemaining Contractual Term(in years) 252,310 $172.00 - $181.99 5.4 9,473 $221.00 - $230.99 9.2 9,793 $236.00 - $245.99 6.1 271,576 Options outstanding at December 31, 2025 had an intrinsic value of $384,000. Options exercisable had an intrinsic value of $292,000 and had a weighted average contractual life of 5.3 years. The intrinsic value of options exercised under the Plan during 2025, 2024 and 2023 was $288,000, $1,394,000 and $113,000, respectively. F-38 Information with respect to performance awards granted is as follows: Performance awards Weighted average grant date fair value per award Outstanding at December 31, 2022 279,067 $ 225.46 Granted 90,215 193.85 Change in awards based on performance (1) (31,345) 241.49 Converted to shares of common stock (60,016) 238.71 Forfeited (2,719) 212.05 Outstanding at December 31, 2023 275,202 $ 210.52 Granted 95,782 185.97 Change in awards based on performance (1) 30,375 216.50 Converted to shares of common stock (146,725) 201.07 Forfeited (4,511) 201.41 Outstanding at December 31, 2024 250,123 $ 207.55 Granted 79,077 222.89 Change in awards based on performance (1) 34,016 257.33 Converted to shares of common stock (103,332) 254.95 Forfeited (3,507) 196.08 Outstanding at December 31, 2025 256,377 $ 199.94 _________________________________(1) Represents the change in the number of performance awards earned based on performance achievement. The Company grants performance awards based on (i) the total shareholder return metrics for the Company’s common stock or (ii) financial metrics related to operating performance, net asset value and leverage metrics of the Company. The number of performance awards granted that are based on total shareholder return metrics and financial metrics are as follows: 2025 2024 2023 Total shareholder return metrics 43,495 52,683 49,611 Financial metrics 35,582 43,099 40,604 Total granted 79,077 95,782 90,215 The Company used a Monte Carlo model to assess the compensation cost associated with the portion of the performance awards granted for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows: 2025 2024 2023 Dividend yield 3.2% 3.9% 3.7% Estimated volatility over the life of the plan (1) 20.4% - 21.6% 20.5% - 22.8% 22.9% - 26.1% Risk free rate 4.00% - 4.01% 3.92% - 4.59% 4.35% - 4.61% Estimated performance award value based on total shareholder return measure $224.11 $189.47 $206.97 _________________________________(1) Estimated volatility over the life of the plan is using 50% historical volatility and 50% implied volatility. For the portion of the performance awards granted for which achievement will be determined by using financial metrics, the compensation cost was based on an average grant date value of $221.58, $175.54 and $177.83, for the years ended December 31, 2025, 2024 and 2023, respectively, and the Company's estimate of corporate achievement for the financial metrics. F-39 Information with respect to restricted stock granted is as follows: Restricted stock shares Weighted average grant date fair value per share Restricted stock shares converted from performance awards Outstanding at December 31, 2022 161,714 $ 210.97 26,370 Granted 93,146 177.70 — Vested (79,450) 207.93 (26,370) Forfeited (2,119) 194.78 — Outstanding at December 31, 2023 173,291 $ 194.68 — Granted 104,081 173.14 — Vested (90,582) 194.89 — Forfeited (4,408) 181.73 — Outstanding at December 31, 2024 182,382 $ 182.59 — Granted 79,928 221.17 — Vested (92,015) 191.69 — Forfeited (3,116) 197.01 — Outstanding at December 31, 2025 167,179 $ 195.76 — Total employee stock-based compensation cost recognized in income was $26,614,000, $25,390,000 and $27,417,000 for the years ended December 31, 2025, 2024 and 2023, respectively, and total capitalized stock-based compensation cost was $11,459,000, $11,117,000 and $10,906,000 for the years ended December 31, 2025, 2024 and 2023, respectively. At December 31, 2025, there was a total unrecognized compensation cost of $28,107,000 for unvested restricted stock, stock options and performance awards, which is expected to be recognized over a weighted average period of 1.8 years. The Company reverses any previously recognized compensation cost for forfeitures as they occur. Employee Stock Purchase Plan In October 1996, the Company adopted the 1996 Non-Qualified Employee Stock Purchase Plan (as amended, the ESPP ). Initially, 1,000,000 shares of common stock were reserved for issuance, and as of December 31, 2025, there are 529,908 shares remaining available for issuance under the ESPP. Employees of the Company generally are eligible to participate in the ESPP if, as of the last day of the applicable purchase period, they have been employed by the Company for at least one calendar month. Under the ESPP, eligible employees can acquire shares of the Company's common stock through payroll deductions, subject to maximum purchase limitations, during two purchase periods. The first purchase period begins January 1 and ends June 10, and the second purchase period begins July 1 and ends December 10. The purchase price for common stock under the plan is 85% of the lesser of the fair market value of the Company's common stock on the first or the last day of the applicable purchase period. The offering dates, purchase dates and duration of purchase periods may be changed if the change is announced prior to the beginning of the affected date or purchase period. The Company issued 20,094, 19,014 and 23,059 shares and recognized compensation expense of $575,000, $859,000 and $911,000 under the ESPP for the years ended December 31, 2025, 2024 and 2023, respectively. The Company accounts for transactions under the ESPP using the fair value method prescribed by accounting guidance applicable to entities that use employee share purchase plans. F-40 10. Related Party Arrangements Unconsolidated Entities The Company manages unconsolidated real estate entities and provides other real estate related services to third parties, for which it receives asset management, property management, construction, development and redevelopment fee revenue. From these entities, the Company earned fees of $7,042,000, $7,081,000 and $7,722,000 for the years ended December 31, 2025, 2024 and 2023, respectively. In addition, the Company had outstanding receivables associated with its property and construction management roles of $1,395,000 and $1,680,000 as of December 31, 2025 and 2024, respectively. Director Compensation Directors of the Company who are also employees receive no additional compensation for their services as a director. Following each annual meeting of stockholders, non-employee directors receive (i) a number of shares of restricted stock (or deferred stock units) having a value of $200,000 and (ii) a cash payment of $100,000, payable in equal quarterly installments of $25,000. The number of shares of restricted stock (or deferred stock units) is calculated based on the closing price on the day of the award. Non-employee directors may elect to receive all or a portion of cash payments in the form of deferred stock units. Additionally, the non-executive Chairman receives an additional annual fee of $250,000 payable in equal quarterly installments of $62,500, the Lead Independent Director receives in the aggregate an additional annual fee of $50,000 payable in equal quarterly installments of $12,500, the non-employee director serving as the chairperson of the Audit Committee receives an additional annual fee of $30,000 per year payable in equal quarterly installments of $7,500, the non-employee director serving as the chairperson of the Compensation Committee receives an additional annual fee of $25,000 per year payable in equal quarterly installments of $6,250 and the Nominating, Governance and Corporate Responsibility and Investment and Finance Committee chairpersons receive an additional annual fee of $20,000 payable in equal quarterly installments of $5,000. The Company recorded non-employee director compensation expense relating to restricted stock grants and deferred stock units in the amount of $2,476,000, $2,397,000 and $2,446,000 for the years ended December 31, 2025, 2024 and 2023, respectively, as a component of general and administrative expense on the accompanying Consolidated Statements of Comprehensive Income. Deferred compensation relating to these restricted stock grants and deferred stock units to non-employee directors was $910,000, $786,000 and $799,000 on December 31, 2025, 2024 and 2023, respectively, reported as a component of prepaid expenses and other assets on the accompanying Consolidated Balance Sheets. 11. Fair Value Financial Instruments Carried at Fair Value Derivative Financial Instruments Hedging Derivatives are carried at fair value in the Company's financial statements. The Company minimizes its credit risk on these transactions by dealing with major, creditworthy financial institutions which have an A- or better credit rating by the Standard & Poor's Ratings Group or equivalent, and monitors the credit ratings of counterparties and the exposure of the Company to any single entity. The Company believes the likelihood of realizing losses from counterparty nonperformance is remote. The Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, such as interest rate, term to maturity and volatility. The Hedging Derivatives credit valuation adjustments associated with its derivatives use Level 3 inputs, such as estimates of current credit spreads, which the Company concluded are not significant. As a result, the Company determined that its derivative valuations are classified in Level 2 of the fair value hierarchy. The following table summarizes the consolidated derivative positions at December 31, 2025 (dollars in thousands): F-41 Non-designated Hedges Cash Flow Hedges Interest Rate Caps Interest Rate Swaps Notional balance $ 391,846 $ 550,000 Weighted average interest rate (1) 4.0% N/A Weighted average capped/swapped interest rate 6.7% 3.5% Earliest maturity date February 2026 April 2029 Latest maturity date January 2027 April 2029 _________________________________(1)For debt hedged by interest rate caps, represents the weighted average interest rate on the hedged debt prior to any impact of the associated interest rate caps. The following derivative activity occurred during the year ended December 31, 2025: •The Company entered into interest rate swap agreements with a notional amount of $550,000,000 to reduce the impact of variability in interest rates on the Term Loan, which the Company expects to remain outstanding through maturity of the Term Loan. •In connection with the issuance of the Company's $400,000,000 unsecured notes in July 2025 maturing in August 2035, the Company terminated $200,000,000 of interest rate swap agreements designated as cash flow hedges of the interest rate variability on the issuance of the unsecured notes, receiving payments of $4,099,000 in July 2025 which will be recognized over the life of the unsecured notes as a reduction in the effective interest rate. Of the $200,000,000 forward interest rate swap agreements terminated, $100,000,000 were entered into during the year ended December 31, 2025. The Company has deferred these gains in accumulated other comprehensive income on the accompanying Consolidated Balance Sheets, and is recognizing the impact as a component of interest expense, net, over the term of the respective hedged debt. •In connection with the issuance of the Company's $400,000,000 unsecured notes in December 2025 maturing in December 2030, the Company entered into and terminated $100,000,000 of interest rate swap agreements designated as cash flow hedges of the interest rate variability on the issuance of the unsecured notes, receiving payments of $242,000 in November 2025 which will be recognized over the life of the unsecured notes as a reduction in the effective interest rate. The Company has deferred these gains in accumulated other comprehensive income on the accompanying Consolidated Balance Sheets, and is recognizing the impact as a component of interest expense, net, over the term of the respective hedged debt. The Company had certain derivatives not designated as hedges during the years ended December 31, 2025, 2024 and 2023, for which fair value changes during each of the respective years were not material. Cash flow hedge gains reclassified from accumulated other comprehensive income into earnings were $3,330,000 and $471,000 for the years ended December 31, 2025 and 2024. Cash flow hedge losses reclassified from accumulated other comprehensive income into earnings were $1,360,000 for the year ended December 31, 2023. The Company anticipates reclassifying approximately $2,478,000 of net hedging gains from accumulated other comprehensive income into earnings within the next 12 months as an offset to the hedged item during this period. F-42 Financial Instruments Not Carried at Fair Value Cash, Cash Equivalents and Restricted Cash Cash, cash equivalent and restricted cash balances are held with various financial institutions within accounts designed to preserve principal. The Company monitors credit ratings of these financial institutions and the concentration of cash, cash equivalents and restricted cash balances with any one financial institution and believes the likelihood of realizing material losses related to cash, cash equivalent and restricted cash balances is remote. Cash, cash equivalents and restricted cash are carried at their face amounts, which reasonably approximate their fair values and are Level 1 within the fair value hierarchy. Other Financial Instruments Rents and other receivables and prepaid expenses, accounts and construction payable and accrued expenses and other liabilities are carried at their face amounts, which reasonably approximate their fair values. The Company determined that its notes receivables approximate fair value, because interest rates, yields and other terms are consistent with interest rates, yields and other terms currently available for similar instruments and are considered to be a Level 2 price within the fair value hierarchy. Equity Securities The Company has direct equity investments in third-party property technology companies. These investments are accounted for using the measurement alternative and are valued at the market price of observable transactions. During the years ended December 31, 2025, 2024 and 2023, the Company recognized unrealized gains of $36,096,000, $21,790,000 and $1,899,000, respectively, related to these investments, which was reported as a component of income from unconsolidated investments on the accompanying Consolidated Statements of Comprehensive Income. As of December 31, 2025, the Company had recorded cumulative fair value adjustments of $67,572,000 for unrealized gains related to equity securities. Indebtedness The Company values its fixed rate unsecured debt using quoted market prices, a Level 1 price within the fair value hierarchy. The Company values its mortgage notes payable, the Term Loan and any outstanding amounts under the Credit Facility and Commercial Paper Program using a discounted cash flow analysis on the expected cash flows of each instrument. This analysis reflects the contractual terms of the instrument, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The process also considers credit valuation adjustments to appropriately reflect the Company's nonperformance risk. The Company has concluded that the value of its mortgage notes payable, Term Loan and any outstanding amounts under the Credit Facility and Commercial Paper Program are Level 2 prices as the majority of the inputs used to value its positions fall within Level 2 of the fair value hierarchy. Financial Instruments Measured/Disclosed at Fair Value on a Recurring Basis The following tables summarize the classification between the three levels of the fair value hierarchy of the Company's financial instruments measured or disclosed at fair value on a recurring basis (dollars in thousands): F-43 December 31, 2025 Description Total FairValue Quoted Pricesin ActiveMarkets forIdentical Assets(Level 1) SignificantOtherObservableInputs(Level 2) SignificantUnobservableInputs(Level 3) Assets Investments Notes Receivable, net $ 259,051 $ — $ 259,051 $ — Total Assets $ 259,051 $ — $ 259,051 $ — Liabilities Interest Rate Swaps - Liabilities $ 4,046 $ — $ 4,046 $ — Indebtedness Fixed rate unsecured debt 7,025,656 7,025,656 — — Mortgage notes payable, Commercial Paper and Term Loan 1,970,177 — 1,970,177 — Total Liabilities $ 8,999,879 $ 7,025,656 $ 1,974,223 $ — December 31, 2024 Description Total FairValue Quoted Pricesin ActiveMarkets forIdentical Assets(Level 1) SignificantOtherObservableInputs(Level 2) SignificantUnobservableInputs(Level 3) Assets Investments Notes Receivable, net $ 223,896 $ — $ 223,896 $ — Non-Designated Hedges Interest Rate Caps 24 — 24 — Interest Rate Swaps - Assets 6,821 — 6,821 — Total Assets $ 230,741 $ — $ 230,741 $ — Liabilities Indebtedness Fixed rate unsecured debt $ 6,796,066 $ 6,796,066 $ — $ — Mortgage notes payable and Commercial Paper Program 660,170 — 660,170 — Total Liabilities $ 7,456,236 $ 6,796,066 $ 660,170 $ — F-44 12. Subsequent Events The Company has evaluated subsequent events, through the date on which this Form 10-K was filed, the date on which these financial statements were issued, and identified the items below for discussion. In 2026, the Company had the following activity: •In January 2026, the Company sold Avalon Sunset Towers, located in San Francisco, CA, containing 243 apartment homes for $105,000,000. •In February 2026, the Company sold Avalon White Plains, located in White Plains, NY, containing 407 apartment homes for $166,000,000. •From January 1, 2026 through February 26, 2026, the Company repurchased 637,958 shares of common stock at an average price of $176.85 per share, including fees, for a total of $112,824,000 under the 2025 Stock Repurchase Program. On February 26, 2026, the Company terminated the remaining authorization under the 2025 Stock Repurchase Program and adopted a new stock repurchase program under which the Company may acquire shares of its common stock in open market or negotiated transactions up to an aggregate purchase price of $1,000,000,000 (the “2026 Stock Repurchase Program”). Purchases of common stock under the 2026 Stock Repurchase Program may occur from time to time at the Company’s discretion. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities. The 2026 Stock Repurchase Program does not have an expiration date and may be suspended or terminated at any time without prior notice. F-45 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition SAME STORE NEW ENGLAND Avalon at Lexington Lexington, MA 198 $ 2,124 $ 12,561 $ 18,294 $ 2,124 $ 30,855 $ 32,979 $ 23,856 $ 9,123 $ 9,397 $ — 1994 eaves Wilmington Wilmington, MA 204 2,129 17,563 12,669 2,129 30,232 32,361 23,432 8,929 8,956 — 1999 eaves Quincy Quincy, MA 245 1,743 14,662 18,709 1,743 33,371 35,114 26,235 8,879 10,307 — 1986/1995 eaves Wilmington West Wilmington, MA 120 3,318 13,465 6,026 3,318 19,491 22,809 14,807 8,002 8,631 — 2002 Avalon at The Pinehills Plymouth, MA 192 6,876 30,313 12,207 6,876 42,520 49,396 26,836 22,560 23,765 — 2004 eaves Peabody Peabody, MA 286 4,645 18,919 20,161 4,645 39,080 43,725 25,661 18,064 17,782 — 1962/2004 Avalon at Bedford Center Bedford, MA 139 4,258 20,551 6,316 4,258 26,867 31,125 19,641 11,484 12,238 — 2006 Avalon at Chestnut Hill Chestnut Hill, MA 204 14,572 45,868 21,199 14,572 67,067 81,639 39,594 42,045 43,107 — 2007 Avalon at Lexington Hills Lexington, MA 387 8,691 78,502 22,847 8,691 101,349 110,040 64,455 45,585 47,461 — 2008 Avalon Acton Acton, MA 380 13,124 48,630 14,025 13,124 62,655 75,779 38,843 36,936 39,493 45,000 2008 Avalon at the Hingham Shipyard Hingham, MA 235 12,218 41,516 17,341 12,218 58,857 71,075 37,312 33,763 35,185 — 2009 Avalon Acton II Acton, MA 86 1,723 29,375 26 1,723 29,401 31,124 5,749 25,375 26,466 — 2021 Avalon Northborough Northborough, MA 382 8,144 52,178 13,565 8,144 65,743 73,887 36,466 37,421 38,547 — 2009 Avalon Exeter (1) Boston, MA 187 — 109,978 5,910 — 115,888 115,888 45,950 69,938 73,163 — 2014 Avalon Natick Natick, MA 407 15,645 64,845 6,764 15,645 71,609 87,254 31,404 55,850 57,856 — 2013 Avalon at Assembly Row Somerville, MA 195 8,599 52,454 9,980 8,599 62,434 71,033 26,020 45,013 46,552 — 2015 AVA Somerville Somerville, MA 250 10,944 56,457 9,618 10,944 66,075 77,019 27,149 49,870 50,751 — 2015 F-46 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition AVA Back Bay Boston, MA 271 9,034 36,536 54,944 9,034 91,480 100,514 60,425 40,089 42,653 — 1968/1998 Avalon at Prudential Center II Boston, MA 266 8,776 35,479 67,208 8,776 102,687 111,463 62,514 48,949 52,210 — 1968/1998 Avalon at Prudential Center I Boston, MA 243 8,002 32,349 59,007 8,002 91,356 99,358 54,803 44,555 47,261 — 1968/1998 eaves Burlington Burlington, MA 203 7,714 32,499 11,802 7,714 44,301 52,015 20,575 31,440 32,237 — 1988/2012 Avalon Burlington Burlington, MA 312 15,600 63,549 21,738 15,600 85,287 100,887 37,389 63,498 65,324 — 1989/2013 Avalon Marlborough Marlborough, MA 350 15,367 59,723 5,507 15,367 65,230 80,597 24,219 56,378 58,252 — 2015 Avalon North Station Boston, MA 503 22,796 247,270 1,684 22,796 248,954 271,750 74,882 196,868 204,645 — 2017 Avalon Framingham Framingham, MA 180 9,315 34,604 1,302 9,315 35,906 45,221 12,852 32,369 33,154 — 2015 Avalon Quincy Quincy, MA 395 14,694 79,655 2,565 14,694 82,220 96,914 26,237 70,677 72,608 — 2017 Avalon Easton South Easton, MA 290 3,170 60,785 2,987 3,170 63,772 66,942 19,307 47,635 48,807 — 2017 Avalon Residences at the Hingham Shipyard Hingham, MA 190 8,998 55,366 1,400 8,998 56,766 65,764 15,153 50,611 52,248 — 2019 Avalon Sudbury Sudbury, MA 250 20,280 66,510 1,477 20,280 67,987 88,267 18,697 69,570 71,743 — 2019 Avalon Saugus Saugus, MA 280 17,808 72,196 1,750 17,808 73,946 91,754 18,304 73,450 75,704 — 2019 Avalon Norwood Norwood, MA 198 9,478 51,762 376 9,478 52,138 61,616 12,316 49,300 50,954 — 2020 Avalon Marlborough II Marlborough, MA 123 5,523 36,175 72 5,523 36,247 41,770 7,380 34,390 35,746 — 2020 Avalon Easton II South Easton, MA 44 570 14,090 12 570 14,102 14,672 2,224 12,448 12,975 — 2021 Avalon Woburn Woburn, MA 350 $ 21,576 $ 97,848 $ 1,161 $ 21,576 $ 99,009 $ 120,585 $ 16,270 $ 104,315 $ 108,276 $ — 2022 F-47 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon North Andover North Andover, MA 221 13,618 63,125 11 13,618 63,136 76,754 7,276 69,478 71,885 — 2023 Avalon Brighton Boston, MA 180 11,166 77,850 342 11,166 78,192 89,358 8,344 81,014 84,147 — 2023 AVA North Point Cambridge, MA 265 31,263 83,829 2,526 31,263 86,355 117,618 22,089 95,529 96,336 — 2018/2019 Avalon Bear Hill Waltham, MA 324 27,350 98,537 31,136 27,350 129,673 157,023 60,856 96,167 98,288 — 1999/2013 TOTAL NEW ENGLAND 9,535 $ 400,851 $ 2,107,574 $ 484,664 $ 400,851 $ 2,592,238 $ 2,993,089 $ 1,095,522 $ 1,897,567 $ 1,965,110 $ 45,000 METRO NY/NJ New York City, NY Avalon Riverview (3) Long Island City, NY 372 $ — $ 94,061 $ 21,901 $ — $ 115,962 $ 115,962 $ 88,595 $ 27,367 $ 29,433 $ — 2002 Avalon Riverview North (3) Long Island City, NY 602 — 165,932 22,825 — 188,757 188,757 111,601 77,156 81,586 — 2008 AVA Fort Greene Brooklyn, NY 631 83,038 216,802 14,660 83,038 231,462 314,500 123,589 190,911 198,019 — 2010 AVA DoBro Brooklyn, NY 500 76,127 206,762 2,775 76,127 209,537 285,664 70,877 214,787 221,044 — 2017 Avalon Willoughby Square Brooklyn, NY 326 49,635 134,840 2,280 49,635 137,120 186,755 44,350 142,405 146,091 — 2017 Avalon Midtown West New York, NY 550 154,730 191,891 42,405 154,730 234,296 389,026 102,925 286,101 293,624 62,500 1998/2013 Avalon Clinton North New York, NY 339 84,069 111,729 13,003 84,069 124,732 208,801 57,555 151,246 154,989 126,400 2008/2013 Avalon Clinton South New York, NY 288 71,421 94,948 7,226 71,421 102,174 173,595 48,139 125,456 128,467 104,500 2007/2013 Total New York City, NY 3,608 $ 519,020 $ 1,216,965 $ 127,075 $ 519,020 $ 1,344,040 $ 1,863,060 $ 647,631 $ 1,215,429 $ 1,253,253 $ 293,400 F-48 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition New York - Suburban Avalon Commons (2) Smithtown, NY 312 $ 4,679 $ 27,811 $ 21,265 $ 4,679 $ 49,076 $ 53,755 $ 37,179 $ 16,576 $ 16,197 $ — 1997 Avalon Melville Melville, NY 494 9,228 50,059 29,043 9,228 79,102 88,330 61,006 27,324 28,680 — 1997 Avalon Rockville Centre I Rockville Centre, NY 349 32,212 78,806 8,866 32,212 87,672 119,884 45,607 74,277 76,914 — 2012 Avalon Garden City Garden City, NY 204 18,205 49,301 3,343 18,205 52,644 70,849 24,166 46,683 47,850 — 2013 Avalon Huntington Station Huntington Station, NY 303 21,899 58,429 4,731 21,899 63,160 85,059 24,835 60,224 61,511 — 2014 Avalon Great Neck Great Neck, NY 191 14,777 65,412 1,863 14,777 67,275 82,052 20,712 61,340 62,472 — 2017 Avalon Rockville Centre II Rockville Centre, NY 165 7,534 50,981 902 7,534 51,883 59,417 15,841 43,576 45,126 — 2017 Avalon Somers Baldwin Place, NY 152 5,608 40,591 166 5,608 40,757 46,365 12,263 34,102 35,299 — 2018 Avalon Yonkers Yonkers, NY 590 28,343 164,203 1,369 28,343 165,572 193,915 35,669 158,246 172,597 — 2021 Avalon Harrison Harrison, NY 143 14,380 75,914 1,470 14,380 77,384 91,764 10,669 81,095 83,243 — 2023 Avalon Harbor Isle Island Park, NY 172 18,812 75,401 10 18,812 75,411 94,223 9,728 84,495 88,467 — 2022 Avalon Westbury Westbury, NY 396 69,620 49,350 18,255 69,620 67,605 137,225 38,196 99,029 99,962 — 2006/2013 Total New York - Suburban 3,471 $ 245,297 $ 786,258 $ 91,283 $ 245,297 $ 877,541 $ 1,122,838 $ 335,871 $ 786,967 $ 818,318 $ — New Jersey Avalon Cove Jersey City, NJ 504 $ 8,760 $ 82,422 $ 38,243 $ 8,760 $ 120,665 $ 129,425 $ 102,535 $ 26,890 $ 30,246 $ — 1997 eaves West Windsor West Windsor, NJ 512 5,585 21,752 38,583 5,585 60,335 65,920 42,971 22,949 23,263 — 1988/1993 F-49 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon at Edgewater I Edgewater, NJ 168 $ 5,982 $ 24,389 $ 12,341 $ 5,982 $ 36,730 $ 42,712 $ 26,766 $ 15,946 $ 16,377 $ — 2002 Avalon Townhome Collection Florham Park Florham Park, NJ 270 6,647 34,906 19,771 6,647 54,677 61,324 39,951 21,373 22,179 — 2001 Avalon North Bergen North Bergen, NJ 164 8,984 30,994 2,468 8,984 33,462 42,446 15,605 26,841 27,270 — 2012 Avalon Bloomingdale Bloomingdale, NJ 174 3,006 27,801 1,799 3,006 29,600 32,606 12,399 20,207 20,930 — 2014 Avalon Wharton Wharton, NJ 247 2,273 48,609 2,322 2,273 50,931 53,204 19,630 33,574 34,831 — 2015 Avalon Bloomfield Station (1) Bloomfield, NJ 224 10,701 36,430 4,011 10,701 40,441 51,142 14,549 36,593 36,716 — 2015 Avalon Townhome Collection Roseland Roseland, NJ 136 11,288 34,868 1,633 11,288 36,501 47,789 13,428 34,361 35,348 — 2015 Avalon Princeton Princeton, NJ 280 26,461 68,003 2,793 26,461 70,796 97,257 23,256 74,001 75,869 — 2017 Avalon Union Union, NJ 202 11,695 36,315 2,191 11,695 38,506 50,201 13,367 36,834 37,981 — 2016 Avalon Hoboken Hoboken, NJ 217 37,237 94,990 4,490 37,237 99,480 136,717 39,319 97,398 99,651 — 2008/2016 Avalon Maplewood Maplewood, NJ 235 15,179 49,425 4,664 15,179 54,089 69,268 16,998 52,270 52,695 — 2018 Avalon Boonton Boonton, NJ 350 3,595 89,407 2,251 3,595 91,658 95,253 22,690 72,563 75,547 — 2019 Avalon Teaneck Teaneck, NJ 248 12,588 60,257 437 12,588 60,694 73,282 14,439 58,843 60,513 — 2020 Avalon Piscataway Piscataway, NJ 360 14,329 75,897 1,839 14,329 77,736 92,065 20,751 71,314 73,604 — 2019 Avalon Old Bridge Old Bridge, NJ 252 6,895 64,907 1,462 6,895 66,369 73,264 13,365 59,899 61,822 — 2021 Avalon Somerville Station (1) Somerville, NJ 374 16,672 98,229 898 16,672 99,127 115,799 13,100 102,699 106,769 — 2023 Avalon at Edgewater II Edgewater, NJ 240 8,605 60,809 818 8,605 61,627 70,232 17,654 52,578 54,071 — 2018 F-50 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Total New Jersey 5,157 $ 216,482 $ 1,040,410 $ 143,014 $ 216,482 $ 1,183,424 $ 1,399,906 $ 482,773 $ 917,133 $ 945,682 $ — TOTAL METRO NY/NJ 12,236 $ 980,799 $ 3,043,633 $ 361,372 $ 980,799 $ 3,405,005 $ 4,385,804 $ 1,466,275 $ 2,919,529 $ 3,017,253 $ 293,400 MID-ATLANTIC Washington Metro/Baltimore, MD Avalon at Foxhall Washington, D.C. 308 $ 6,848 $ 27,614 $ 28,108 $ 6,848 $ 55,722 $ 62,570 $ 46,433 $ 16,137 $ 16,874 $ — 1982/1994 eaves Tunlaw Gardens Washington, D.C. 166 16,430 24,602 1,987 16,430 26,589 43,019 12,891 30,128 30,788 — 1944/2013 The Statesman Washington, D.C. 281 38,140 38,732 4,457 38,140 43,189 81,329 22,254 59,075 60,389 — 1961/2013 eaves Glover Park Washington, D.C. 120 9,580 28,082 3,215 9,580 31,297 40,877 14,844 26,033 25,405 — 1953/2013 AVA Van Ness Washington, D.C. 269 22,890 61,701 24,876 22,890 86,577 109,467 36,891 72,576 74,131 — 1978/2013 eaves Washingtonian Center North Potomac, MD 288 4,047 18,553 11,065 4,047 29,618 33,665 25,216 8,449 8,817 — 1996 eaves Columbia Town Center I Columbia, MD 392 8,802 35,536 19,715 8,802 55,251 64,053 36,250 27,803 28,175 — 1986/1993 Avalon at Grosvenor Station North Bethesda, MD 497 29,159 52,993 16,112 29,159 69,105 98,264 48,166 50,098 50,267 — 2004 Avalon at Traville Rockville, MD 520 14,365 55,398 14,824 14,365 70,222 84,587 50,322 34,265 34,483 — 2004 AVA Wheaton Wheaton, MD 319 6,494 69,027 857 6,494 69,884 76,378 21,275 55,103 56,841 — 2018 Kanso Twinbrook Rockville, MD 238 9,151 56,955 63 9,151 57,018 66,169 10,758 55,411 57,613 — 2021 Avalon Hunt Valley Hunt Valley, MD 332 10,872 62,974 2,135 10,872 65,109 75,981 20,797 55,184 56,371 — 2017 Avalon Laurel (2) Laurel, MD 344 10,130 61,685 6,603 10,130 68,288 78,418 20,734 57,684 57,552 — 2017 F-51 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon Towson Towson, MD 371 12,906 98,279 188 12,906 98,467 111,373 21,128 90,245 93,746 — 2020 Avalon Fairway Hills - Meadows Columbia, MD 192 $ 2,323 $ 9,297 $ 11,975 $ 2,323 $ 21,272 $ 23,595 $ 14,500 $ 9,095 $ 7,887 $ — 1987/1996 Avalon Fairway Hills - Woods Columbia, MD 336 3,958 15,839 17,655 3,958 33,494 37,452 24,440 13,012 13,865 — 1987/1996 Avalon Arundel Crossing II Linthicum Heights, MD 310 12,208 72,422 1,064 12,208 73,486 85,694 23,319 62,375 64,620 — 2018/2018 Avalon 555 President Baltimore, MD 400 13,168 121,759 128 13,168 121,887 135,055 26,800 108,255 113,743 — 2021 Kanso Silver Spring Silver Spring, MD 151 3,471 42,108 2,230 3,471 44,338 47,809 11,654 36,155 37,413 — 2009/2019 Avalon Foundry Row Owings Mills, MD 437 11,132 86,261 17 11,132 86,278 97,410 15,700 81,710 85,280 — 2022 Avalon Arundel Crossing Linthicum Heights, MD 384 9,933 111,114 1,049 9,933 112,163 122,096 25,857 96,239 100,962 — 2020/2021 Avalon Russett Laurel, MD 238 10,200 49,834 7,088 10,200 56,922 67,122 28,100 39,022 40,992 32,200 1999/2013 eaves Fair Lakes Fairfax, VA 420 6,096 24,400 17,364 6,096 41,764 47,860 35,380 12,480 13,628 — 1989/1996 AVA Ballston Arlington, VA 344 7,291 29,177 29,588 7,291 58,765 66,056 41,472 24,584 25,016 — 1990 eaves Fairfax City Fairfax, VA 141 2,152 8,907 6,390 2,152 15,297 17,449 12,093 5,356 5,486 — 1988/1997 Avalon Tysons Corner (2) Tysons Corner, VA 558 13,851 43,397 36,888 13,851 80,285 94,136 52,008 42,128 33,672 — 1996 Avalon at Arlington Square (2) Arlington, VA 842 22,041 90,296 47,129 22,041 137,425 159,466 91,204 68,262 68,783 — 2001 eaves Fairfax Towers Falls Church, VA 415 17,889 74,727 18,802 17,889 93,529 111,418 45,934 65,484 67,222 — 1978/2011 Avalon Mosaic Fairfax, VA 531 33,490 75,801 4,459 33,490 80,260 113,750 32,580 81,170 83,233 — 2014 Avalon Potomac Yard Alexandria, VA 323 24,225 84,530 2,693 24,225 87,223 111,448 33,952 77,496 79,784 — 2014/2016 F-52 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon Clarendon Arlington, VA 300 22,573 99,297 9,757 22,573 109,054 131,627 42,511 89,116 91,786 — 2002/2016 Avalon Dunn Loring Vienna, VA 440 29,377 120,884 2,635 29,377 123,519 152,896 43,450 109,446 113,080 — 2012/2017 eaves Tysons Corner Vienna, VA 217 16,030 47,572 5,436 16,030 53,008 69,038 26,810 42,228 42,016 — 1980/2013 AVA Ballston Square (2) Arlington, VA 714 71,640 225,206 58,020 71,640 283,226 354,866 125,435 229,431 237,093 — 1992/2013 Avalon Courthouse Place Arlington, VA 564 56,550 185,632 15,875 56,550 201,507 258,057 94,158 163,899 169,625 — 1999/2013 Avalon Arlington North Arlington, VA 228 21,600 59,076 10,737 21,600 69,813 91,413 28,617 62,796 64,568 — 2014 Avalon Reston Landing Reston, VA 400 26,710 86,934 15,580 26,710 102,514 129,224 54,030 75,194 77,988 — 2000/2013 Avalon Falls Church (2) Falls Church, VA 384 39,544 66,160 11,704 39,544 77,864 117,408 25,133 92,275 88,414 — 2016 TOTAL MID-ATLANTIC 13,714 $ 677,266 $ 2,522,761 $ 468,468 $ 677,266 $ 2,991,229 $ 3,668,495 $ 1,343,096 $ 2,325,399 $ 2,377,608 $ 32,200 SOUTHEAST FLORIDA Avalon 850 Boca Boca Raton, FL 370 $ 21,430 $ 117,895 $ 3,884 $ 21,430 $ 121,779 $ 143,209 $ 39,525 $ 103,684 $ 106,556 $ — 2017/2017 Avalon Doral Doral, FL 350 23,375 92,966 534 23,375 93,500 116,875 17,521 99,354 102,281 — 2020 Avalon West Palm Beach West Palm Beach, FL 290 9,597 94,119 5,264 9,597 99,383 108,980 29,903 79,077 82,000 — 2018/2018 Avalon Bonterra Hialeah, FL 314 16,655 73,977 2,601 16,655 76,578 93,233 23,327 69,906 70,979 — 2018/2019 Avalon Toscana Margate, FL 240 9,213 51,480 1,646 9,213 53,126 62,339 14,765 47,574 48,957 — 2016/2019 Avalon Fort Lauderdale Fort Lauderdale, FL 243 20,029 126,505 3,434 20,029 129,939 149,968 24,138 125,830 130,485 — 2020/2021 Avalon Miramar Miramar, FL 380 17,959 116,276 1,236 17,959 117,512 135,471 24,765 110,706 115,062 — 2018/2021 F-53 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon Miramar Park Place Miramar, FL 650 50,919 245,728 1,559 50,919 247,287 298,206 49,933 248,273 258,233 — 2022/2022 TOTAL SOUTHEAST FLORIDA 2,837 $ 169,177 $ 918,946 $ 20,158 $ 169,177 $ 939,104 $ 1,108,281 $ 223,877 $ 884,404 $ 914,553 $ — DENVER,CO Avalon Denver West Lakewood, CO 252 $ 8,047 $ 69,373 $ 3,445 $ 8,047 $ 72,818 $ 80,865 $ 24,492 $ 56,373 $ 57,900 $ — 2016/2017 Avalon Castle Rock at the Meadows Castle Rock, CO 240 8,527 65,325 1,194 8,527 66,519 75,046 20,539 54,507 56,545 — 2018/2018 Avalon Red Rocks Littleton, CO 256 4,461 71,477 1,588 4,461 73,065 77,526 22,528 54,998 56,268 — 2018/2018 Avalon Southlands Aurora, CO 338 5,101 86,653 1,783 5,101 88,436 93,537 26,548 66,989 68,668 — 2018/2019 AVA RiNo Denver, CO 246 15,152 71,662 604 15,152 72,266 87,418 11,173 76,245 78,529 — 2022 Avalon Flatirons Lafayette, CO 207 7,390 88,438 601 7,390 89,039 96,429 15,175 81,254 84,673 — 2020/2022 TOTAL DENVER, CO 1,539 $ 48,678 $ 452,928 $ 9,215 $ 48,678 $ 462,143 $ 510,821 $ 120,455 $ 390,366 $ 402,583 $ — PACIFIC NORTHWEST Seattle, WA Avalon at Bear Creek Redmond, WA 264 $ 6,786 $ 27,641 $ 12,077 $ 6,786 $ 39,718 $ 46,504 $ 33,232 $ 13,272 $ 13,295 $ — 1998/1998 Avalon Bellevue Bellevue, WA 201 6,664 24,119 8,723 6,664 32,842 39,506 25,971 13,535 14,705 — 2001 eaves RockMeadow (2) Bothell, WA 206 4,777 19,765 10,013 4,777 29,778 34,555 21,983 12,572 11,265 — 2000/2000 Avalon ParcSquare Redmond, WA 124 3,789 15,139 7,297 3,789 22,436 26,225 17,114 9,111 8,682 — 2000/2000 F-54 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon Meydenbauer Bellevue, WA 368 12,697 77,450 13,006 12,697 90,456 103,153 52,718 50,435 50,802 — 2008 Avalon Towers Bellevue (3) Bellevue, WA 397 — 123,029 11,008 — 134,037 134,037 68,905 65,132 68,324 — 2011 AVA Queen Anne Seattle, WA 203 12,081 41,618 2,603 12,081 44,221 56,302 21,424 34,878 36,135 — 2012 Avalon Alderwood I Lynnwood, WA 367 12,294 55,627 2,284 12,294 57,911 70,205 22,464 47,741 48,933 — 2015 AVA Capitol Hill Seattle, WA 249 20,613 59,986 2,220 20,613 62,206 82,819 22,390 60,429 62,049 — 2016 Avalon Esterra Park Redmond, WA 482 23,178 112,986 2,660 23,178 115,646 138,824 38,203 100,621 103,858 — 2017 Avalon Alderwood II Lynnwood, WA 124 5,072 21,418 505 5,072 21,923 26,995 7,111 19,884 20,377 — 2016 Avalon Newcastle Commons I Newcastle, WA 378 9,649 111,600 3,061 9,649 114,661 124,310 34,127 90,183 93,082 — 2017 Avalon Belltown Towers Seattle, WA 274 24,638 121,064 1,509 24,638 122,573 147,211 29,924 117,287 121,084 — 2019 AVA Esterra Park Redmond, WA 323 16,405 74,568 583 16,405 75,151 91,556 19,321 72,235 74,188 — 2019 Avalon Newcastle Commons II Newcastle, WA 293 6,982 99,831 687 6,982 100,518 107,500 18,374 89,126 92,725 — 2021 Avalon North Creek Bothell, WA 316 13,498 69,013 213 13,498 69,226 82,724 16,828 65,896 68,008 — 2020 eaves Redmond Campus Redmond, WA 374 15,665 84,852 29,514 15,665 114,366 130,031 54,498 75,533 79,094 — 1991/2013 TOTAL PACIFIC NORTHWEST 4,943 $ 194,788 $ 1,139,706 $ 107,963 $ 194,788 $ 1,247,669 $ 1,442,457 $ 504,587 $ 937,870 $ 966,606 $ — NORTHERN CALIFORNIA San Jose, CA F-55 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon Campbell Campbell, CA 348 $ 11,830 $ 47,825 $ 18,028 $ 11,830 $ 65,853 $ 77,683 $ 53,204 $ 24,479 $ 25,118 $ — 1995 eaves San Jose San Jose, CA 442 12,920 53,047 21,985 12,920 75,032 87,952 56,087 31,865 33,399 — 1985/1996 Avalon on the Alameda San Jose, CA 307 6,119 50,214 16,758 6,119 66,972 73,091 53,671 19,420 20,138 — 1999 Avalon Silicon Valley Sunnyvale, CA 714 20,713 99,573 43,293 20,713 142,866 163,579 110,891 52,688 56,039 — 1998 Avalon Mountain View Mountain View, CA 248 9,755 39,387 16,729 9,755 56,116 65,871 45,899 19,972 18,884 — 1986 eaves Creekside Mountain View, CA 300 $ 6,546 $ 26,263 $ 24,748 $ 6,546 $ 51,011 $ 57,557 $ 39,538 $ 18,019 $ 18,512 $ — 1962/1997 Avalon at Cahill Park San Jose, CA 218 4,765 47,600 6,393 4,765 53,993 58,758 41,649 17,109 18,071 — 2002 Avalon Towers on the Peninsula Mountain View, CA 211 9,560 56,136 17,112 9,560 73,248 82,808 51,940 30,868 33,201 — 2002 Avalon Morrison Park San Jose, CA 250 13,837 64,521 3,858 13,837 68,379 82,216 27,704 54,512 55,227 — 2014 Avalon Willow Glen San Jose, CA 412 46,060 85,637 6,543 46,060 92,180 138,240 48,566 89,674 92,429 — 2002/2013 eaves West Valley San Jose, CA 873 90,890 138,555 14,391 90,890 152,946 243,836 77,275 166,561 169,311 — 1970/2013 eaves Mountain View at Middlefield Mountain View, CA 404 64,070 73,438 16,490 64,070 89,928 153,998 50,141 103,857 106,151 — 1969/2013 Total San Jose, CA 4,727 $ 297,065 $ 782,196 $ 206,328 $ 297,065 $ 988,524 $ 1,285,589 $ 656,565 $ 629,024 $ 646,480 $ — East Bay, CA Avalon Fremont (2) Fremont, CA 308 $ 10,746 $ 43,399 $ 34,107 $ 10,746 $ 77,506 $ 88,252 $ 51,668 $ 36,584 $ 37,059 $ — 1992/1994 eaves Dublin (2) Dublin, CA 204 5,276 19,642 28,080 5,276 47,722 52,998 27,150 25,848 26,621 — 1989/1997 F-56 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition eaves Pleasanton (2) Pleasanton, CA 460 11,610 46,552 57,091 11,610 103,643 115,253 62,462 52,791 53,818 — 1988/1994 eaves Union City Union City, CA 208 4,249 16,820 7,213 4,249 24,033 28,282 20,370 7,912 7,717 — 1973/1996 eaves Fremont Fremont, CA 237 6,581 26,583 14,454 6,581 41,037 47,618 33,744 13,874 14,359 — 1985/1994 Avalon Union City Union City, CA 439 14,732 104,024 9,215 14,732 113,239 127,971 62,626 65,345 68,623 — 2009 Avalon Walnut Creek (3) Walnut Creek, CA 422 — 148,846 9,934 — 158,780 158,780 83,240 75,540 79,649 4,868 2010 Avalon Dublin Station Dublin, CA 253 7,772 72,142 4,072 7,772 76,214 83,986 30,543 53,443 54,541 — 2014 Avalon Dublin Station II Dublin, CA 252 7,762 76,587 2,997 7,762 79,584 87,346 26,558 60,788 62,213 — 2016 Avalon Public Market (1) Emeryville, CA 289 27,394 145,898 689 27,394 146,587 173,981 33,019 140,962 145,325 — 2020 Avalon Walnut Creek II (3) Walnut Creek, CA 200 — 112,768 795 — 113,563 113,563 23,040 90,523 94,760 — 2020 eaves Walnut Creek Walnut Creek, CA 510 30,320 86,475 16,471 30,320 102,946 133,266 48,784 84,482 87,164 — 1987/2013 Avalon Walnut Ridge I Walnut Creek, CA 106 9,860 20,630 5,605 9,860 26,235 36,095 12,402 23,693 24,541 — 2000/2013 Avalon Walnut Ridge II Walnut Creek, CA 360 27,190 60,209 11,893 27,190 72,102 99,292 35,050 64,242 66,282 — 1989/2013 Total East Bay, CA 4,248 $ 163,492 $ 980,575 $ 202,616 $ 163,492 $ 1,183,191 $ 1,346,683 $ 550,656 $ 796,027 $ 822,672 $ 4,868 San Francisco, CA AVA Nob Hill San Francisco, CA 185 $ 5,403 $ 21,567 $ 12,658 $ 5,403 $ 34,225 $ 39,628 $ 27,562 $ 12,066 $ 13,470 $ — 1990/1995 F-57 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition eaves Foster City Foster City, CA 290 7,852 31,445 19,085 7,852 50,530 58,382 39,994 18,388 19,045 — 1973/1994 eaves Pacifica Pacifica, CA 220 6,125 24,792 8,329 6,125 33,121 39,246 28,057 11,189 10,359 — 1971/1995 Avalon at Mission Bay I San Francisco, CA 250 14,029 78,452 13,328 14,029 91,780 105,809 70,083 35,726 37,589 — 2003 Avalon at Mission Bay III San Francisco, CA 261 28,687 119,156 3,888 28,687 123,044 151,731 67,544 84,187 86,627 — 2009 Avalon Ocean Avenue San Francisco, CA 173 5,544 50,906 4,559 5,544 55,465 61,009 25,972 35,037 36,227 — 2012 AVA 55 Ninth San Francisco, CA 273 20,267 97,321 2,232 20,267 99,553 119,820 40,655 79,165 82,153 — 2014 Avalon Hayes Valley San Francisco, CA 182 12,595 81,228 1,754 12,595 82,982 95,577 30,910 64,667 67,324 — 2015 Avalon Dogpatch San Francisco, CA 326 23,523 180,698 1,300 23,523 181,998 205,521 52,136 153,385 158,894 — 2018 Avalon San Bruno I San Bruno, CA 300 40,780 71,352 8,084 40,780 79,436 120,216 40,824 79,392 81,835 52,150 2004/2013 Avalon San Bruno II San Bruno, CA 185 $ 23,787 $ 46,609 $ 3,483 $ 23,787 $ 50,092 $ 73,879 $ 23,186 $ 50,693 $ 52,125 $ — 2007/2013 Avalon San Bruno III San Bruno, CA 187 33,303 65,255 2,321 33,303 67,576 100,879 31,138 69,741 71,884 51,000 2010/2013 Total San Francisco, CA 2,832 $ 221,895 $ 868,781 $ 81,021 $ 221,895 $ 949,802 $ 1,171,697 $ 478,061 $ 693,636 $ 717,532 $ 103,150 TOTAL NORTHERN CALIFORNIA 11,807 $ 682,452 $ 2,631,552 $ 489,965 $ 682,452 $ 3,121,517 $ 3,803,969 $ 1,685,282 $ 2,118,687 $ 2,186,684 $ 108,018 SOUTHERN CALIFORNIA Los Angeles, CA F-58 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition AVA Burbank (2) Burbank, CA 750 $ 22,483 $ 28,078 $ 62,627 $ 22,483 $ 90,705 $ 113,188 $ 65,654 $ 47,534 $ 48,073 $ — 1961/1997 Avalon Woodland Hills Woodland Hills, CA 663 23,828 40,329 92,876 23,828 133,205 157,033 78,669 78,364 80,697 — 1989/1997 eaves Warner Center (2) Woodland Hills, CA 228 7,045 12,974 21,385 7,045 34,359 41,404 24,694 16,710 14,823 — 1979/1998 Avalon Glendale (3) Glendale, CA 223 — 42,564 4,928 — 47,492 47,492 35,413 12,079 13,423 — 2003 Avalon Burbank Burbank, CA 403 14,053 56,814 34,670 14,053 91,484 105,537 62,954 42,583 44,288 — 1988/2002 Avalon Camarillo Camarillo, CA 249 8,446 40,239 6,194 8,446 46,433 54,879 30,747 24,132 25,524 — 2006 Avalon Wilshire Los Angeles, CA 125 5,459 41,174 8,516 5,459 49,690 55,149 32,315 22,834 24,271 — 2007 Avalon Encino Encino, CA 132 12,789 49,062 5,452 12,789 54,514 67,303 31,315 35,988 38,011 — 2008 Avalon Warner Place Canoga Park, CA 210 7,920 44,823 4,494 7,920 49,317 57,237 29,284 27,953 29,533 — 2008 AVA Little Tokyo Los Angeles, CA 280 14,734 93,977 3,338 14,734 97,315 112,049 37,848 74,201 77,050 — 2015 eaves Phillips Ranch (2) Pomona, CA 503 9,796 41,675 21,196 9,796 62,871 72,667 30,741 41,926 42,283 — 1989/2011 eaves San Dimas San Dimas, CA 102 1,916 7,803 3,586 1,916 11,389 13,305 5,967 7,338 7,532 — 1978/2011 eaves San Dimas Canyon San Dimas, CA 156 2,953 12,369 3,515 2,953 15,884 18,837 8,122 10,715 10,705 — 1981/2011 AVA Pasadena Pasadena, CA 84 8,400 11,522 7,429 8,400 18,951 27,351 8,547 18,804 19,037 — 1973/2012 eaves Cerritos Artesia, CA 151 8,305 21,195 3,629 8,305 24,824 33,129 11,407 21,722 22,361 — 1973/2012 Avalon Playa Vista Los Angeles, CA 309 30,900 71,944 11,406 30,900 83,350 114,250 41,232 73,018 75,275 — 2006/2012 Avalon San Dimas San Dimas, CA 162 9,141 30,726 4,395 9,141 35,121 44,262 13,594 30,668 31,719 — 2014 Avalon Glendora Glendora, CA 281 18,311 64,303 1,613 18,311 65,916 84,227 23,741 60,486 62,586 — 2016 F-59 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon West Hollywood West Hollywood, CA 294 35,214 118,926 3,619 35,214 122,545 157,759 38,084 119,675 122,819 — 2017 Avalon Mission Oaks Camarillo, CA 160 9,600 38,666 2,874 9,600 41,540 51,140 17,388 33,752 34,471 — 2014 Avalon Chino Hills Chino Hills, CA 331 16,617 79,829 2,986 16,617 82,815 99,432 25,542 73,890 75,465 — 2017 AVA Hollywood at La Pietra Place Los Angeles, CA 695 99,309 272,546 3,164 99,309 275,710 375,019 58,502 316,517 325,874 — 2021 Avalon Cerritos Cerritos, CA 132 8,869 52,025 931 8,869 52,956 61,825 14,223 47,602 49,111 30,250 2017/2019 Avalon Monrovia Monrovia, CA 154 12,125 56,202 579 12,125 56,781 68,906 10,212 58,694 60,783 — 2021 Avalon Simi Valley Simi Valley, CA 500 42,020 77,521 13,681 42,020 91,202 133,222 44,625 88,597 89,709 — 2007/2013 AVA Studio City II Studio City, CA 101 4,626 23,840 7,731 4,626 31,571 36,197 14,611 21,586 22,327 — 1991/2013 Avalon Studio City Studio City, CA 276 15,756 81,318 17,699 15,756 99,017 114,773 48,279 66,494 69,461 — 2002/2013 Avalon Calabasas Calabasas, CA 600 42,720 112,911 29,041 42,720 141,952 184,672 81,346 103,326 106,785 — 1988/2013 Avalon Oak Creek Agoura Hills, CA 338 43,540 83,625 14,112 43,540 97,737 141,277 54,897 86,380 88,053 — 2004/2013 Avalon Santa Monica on Main Santa Monica, CA 133 32,000 63,612 14,662 32,000 78,274 110,274 35,852 74,422 76,991 — 2007/2013 eaves Old Town Pasadena Pasadena, CA 96 $ 9,110 $ 16,316 $ 7,084 $ 9,110 $ 23,400 $ 32,510 $ 10,879 $ 21,631 $ 22,089 $ — 1972/2013 eaves Thousand Oaks Thousand Oaks, CA 158 13,950 21,574 7,193 13,950 28,767 42,717 16,925 25,792 26,085 — 1992/2013 eaves Los Feliz Los Angeles, CA 263 18,940 46,201 14,359 18,940 60,560 79,500 28,895 50,605 51,172 41,400 1989/2013 AVA Toluca Hills (2) Los Angeles, CA 1,151 86,450 170,241 107,790 86,450 278,031 364,481 110,754 253,727 249,772 — 1973/2013 eaves Woodland Hills Woodland Hills, CA 894 68,940 96,808 27,583 68,940 124,391 193,331 66,383 126,948 129,746 111,500 1971/2013 F-60 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon Thousand Oaks Plaza Thousand Oaks, CA 148 12,810 24,025 6,251 12,810 30,276 43,086 14,971 28,115 27,550 — 2002/2013 Avalon Pasadena Pasadena, CA 120 10,240 33,038 6,287 10,240 39,325 49,565 17,946 31,619 32,409 — 2004/2013 AVA Studio City I Studio City, CA 450 17,658 94,094 36,414 17,658 130,508 148,166 58,823 89,343 92,791 — 1987/2013 Total Los Angeles, CA 12,005 $ 806,973 $ 2,274,889 $ 625,289 $ 806,973 $ 2,900,178 $ 3,707,151 $ 1,341,381 $ 2,365,770 $ 2,420,654 $ 183,150 Orange County, CA AVA Newport Costa Mesa, CA 145 $ 1,975 $ 3,814 $ 12,822 $ 1,975 $ 16,636 $ 18,611 $ 11,306 $ 7,305 $ 7,103 $ — 1956/1996 eaves Mission Viejo Mission Viejo, CA 166 2,517 9,241 7,910 2,517 17,151 19,668 13,954 5,714 5,713 — 1984/1996 eaves South Coast Costa Mesa, CA 258 4,709 16,063 17,148 4,709 33,211 37,920 25,669 12,251 12,099 — 1973/1996 eaves Santa Margarita (2) Rancho Santa Margarita, CA 302 4,607 16,895 19,343 4,607 36,238 40,845 25,979 14,866 13,001 — 1990/1997 eaves Huntington Beach Huntington Beach, CA 304 4,871 19,729 14,702 4,871 34,431 39,302 29,914 9,388 9,785 — 1971/1997 Avalon Irvine I Irvine, CA 279 9,911 67,504 10,140 9,911 77,644 87,555 42,634 44,921 47,455 — 2010 Avalon Irvine II Irvine, CA 179 4,358 40,890 2,606 4,358 43,496 47,854 19,289 28,565 29,404 — 2013 eaves Lake Forest Lake Forest, CA 225 5,199 21,117 9,385 5,199 30,502 35,701 16,093 19,608 20,489 — 1975/2011 Avalon Baker Ranch Lake Forest, CA 430 31,689 98,004 2,834 31,689 100,838 132,527 37,364 95,163 97,389 — 2015 Avalon Irvine III Irvine, CA 156 11,607 43,973 1,012 11,607 44,985 56,592 15,447 41,145 42,401 — 2016 Avalon Brea Place Brea, CA 653 72,925 220,151 117 72,925 220,268 293,193 34,402 258,791 267,340 — 2022 eaves Seal Beach Seal Beach, CA 549 46,790 104,129 34,789 46,790 138,918 185,708 61,413 124,295 128,808 — 1971/2013 F-61 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon Huntington Beach Huntington Beach, CA 378 13,055 105,981 2,040 13,055 108,021 121,076 35,453 85,623 88,709 — 2017 Total Orange County, CA 4,024 $ 214,213 $ 767,491 $ 134,848 $ 214,213 $ 902,339 $ 1,116,552 $ 368,917 $ 747,635 $ 769,696 $ — San Diego, CA AVA Pacific Beach San Diego, CA 564 $ 9,922 $ 40,580 $ 45,215 $ 9,922 $ 85,795 $ 95,717 $ 65,063 $ 30,654 $ 33,574 $ — 1969/1997 eaves Mission Ridge San Diego, CA 200 2,710 10,924 17,891 2,710 28,815 31,525 23,546 7,979 8,435 — 1960/1997 eaves San Marcos San Marcos, CA 186 3,277 13,385 10,869 3,277 24,254 27,531 10,666 16,865 17,013 — 1988/2011 eaves Rancho Penasquitos San Diego, CA 250 6,692 27,143 14,558 6,692 41,701 48,393 22,125 26,268 27,835 — 1986/2011 Avalon Vista Vista, CA 221 12,689 43,328 2,003 12,689 45,331 58,020 17,149 40,871 41,783 — 2015 eaves La Mesa La Mesa, CA 168 9,490 29,412 5,348 9,490 34,760 44,250 19,709 24,541 25,900 — 1989/2013 Avalon La Jolla Colony San Diego, CA 180 16,760 29,234 11,600 16,760 40,834 57,594 20,595 36,999 38,110 — 1987/2013 Total San Diego, CA 1,769 $ 61,540 $ 194,006 $ 107,484 $ 61,540 $ 301,490 $ 363,030 $ 178,853 $ 184,177 $ 192,650 $ — TOTAL SOUTHERN CALIFORNIA 17,798 $ 1,082,726 $ 3,236,386 $ 867,621 $ 1,082,726 $ 4,104,007 $ 5,186,733 $ 1,889,151 $ 3,297,582 $ 3,383,000 $ 183,150 OTHER EXPANSION REGIONS North Carolina Avalon South End Charlotte, NC 265 $ 13,723 $ 90,017 $ 4,694 $ 13,723 $ 94,711 $ 108,434 $ 19,681 $ 88,753 $ 92,498 $ — 2020/2021 AVA South End Charlotte, NC 164 9,367 45,277 4,812 9,367 50,089 59,456 9,002 50,454 50,284 — 2013/2021 F-62 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon Hawk (1) Charlotte, NC 71 2,564 44,255 310 2,564 44,565 47,129 7,167 39,962 41,379 — 2021/2021 Avalon Highland Creek Charlotte, NC 260 4,586 73,014 875 4,586 73,889 78,475 12,516 65,959 68,671 — 2022/2022 Avalon Mooresville Mooresville, NC 203 3,770 48,862 501 3,770 49,363 53,133 5,470 47,663 49,488 — 2017/2023 Total North Carolina 963 $ 34,010 $ 301,425 $ 11,192 $ 34,010 $ 312,617 $ 346,627 $ 53,836 $ 292,791 $ 302,320 $ — Texas Avalon Lakeside Flower Mound, TX 425 $ 15,073 $ 102,992 $ 1,265 $ 15,073 $ 104,257 $ 119,330 $ 23,530 $ 95,800 $ 99,577 $ — 2015/2021 Avalon Addison Addison, TX 196 11,174 59,132 1,260 11,174 60,392 71,566 9,914 61,652 63,526 — 1995/2022 Avalon Frisco at Main Frisco, TX 360 11,919 71,978 1,597 11,919 73,575 85,494 10,470 75,024 77,462 — 2013/2023 Avalon West Plano Carrollton, TX 568 14,100 123,617 1,607 14,100 125,224 139,324 19,181 120,143 124,700 61,384 2016/2023 Total Texas 1,549 $ 52,266 $ 357,719 $ 5,729 $ 52,266 $ 363,448 $ 415,714 $ 63,095 $ 352,619 $ 365,265 $ 61,384 TOTAL OTHER EXPANSION REGIONS 2,512 $ 86,276 $ 659,144 $ 16,921 $ 86,276 $ 676,065 $ 762,341 $ 116,931 $ 645,410 $ 667,585 $ 61,384 TOTAL SAME STORE 76,921 $ 4,323,013 $ 16,712,630 $ 2,826,347 $ 4,323,013 $ 19,538,977 $ 23,861,990 $ 8,445,176 $ 15,416,814 $ 15,880,982 $ 723,152 F-63 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition OTHER STABILIZED Avalon Sunset Towers (4) San Francisco, CA 243 $ 3,561 $ 21,313 $ 18,081 $ 3,561 $ 39,394 $ 42,955 $ 30,847 $ 12,108 $ 13,002 $ — 1961/1996 Avalon West Dublin Dublin, CA 499 39,070 223,281 4 39,070 223,285 262,355 14,985 247,370 253,859 — 2024 AVA Balboa Park San Diego, CA 100 10,537 40,706 1,160 10,537 41,866 52,403 2,608 49,795 50,313 — 2015/2024 Avalon Cherry Hills Englewood, CO 306 9,798 85,404 4,209 9,798 89,613 99,411 7,632 91,779 91,855 — 2015/2024 Avalon Lowry Denver, CO 347 15,382 121,829 160 15,382 121,989 137,371 8,757 128,614 136,211 — 2019/2024 Avalon The Albemarle (4) Washington, D.C. 234 25,140 55,945 9,668 25,140 65,613 90,753 32,378 58,375 58,681 — 1966/2013 Avalon Merrick Park Miami, FL 254 23,779 79,305 — 23,779 79,305 103,084 7,922 95,162 98,105 — 2023 Avalon Coconut Creek Coconut Creek, FL 270 17,551 81,659 112 17,551 81,771 99,322 3,224 96,098 — — 2014/2025 Avalon Perimeter Park Morrisville, NC 262 11,533 55,229 2,597 11,533 57,826 69,359 5,047 64,312 64,486 — 2018/2024 Avalon Townhome Collection Brier Creek Durham, NC 93 4,564 32,225 — 4,564 32,225 36,789 328 36,461 — — 2020/2025 Avalon at Palisades Charlotte, NC 274 5,881 66,081 62 5,881 66,143 72,024 2,606 69,418 — — 2020/2025 Avalon Princeton Circle Princeton, NJ 221 11,705 75,465 364 11,705 75,829 87,534 6,898 80,636 83,596 — 2023 Avalon White Plains (4) White Plains, NY 407 15,391 137,312 7,291 15,391 144,603 159,994 80,216 79,778 82,287 — 2009 Avalon Amityville Amityville, NY 338 22,466 113,145 8 22,466 113,153 135,619 8,857 126,762 131,423 — 2024 Kanso Milford Milford, MA 162 14,361 48,955 6 14,361 48,961 63,322 2,949 60,373 60,710 — 2024 Avalon at Pier 121 Lewisville, TX 300 8,418 53,793 1,456 8,418 55,249 63,667 5,611 58,056 59,372 — 2014/2024 Avalon Townhome Bee Cave, TX 126 7,955 41,352 365 7,955 41,717 49,672 2,608 47,064 48,748 — 2022/2024 F-64 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Collection Bee Cave Avalon Hill Country Austin, TX 554 19,430 117,062 409 19,430 117,471 136,901 10,478 126,423 — — 2015/2025 Avalon Wolf Ranch Georgetown, TX 303 6,891 44,462 545 6,891 45,007 51,898 3,123 48,775 — — 2017/2025 eaves Twin Creeks Allen, TX 216 9,762 35,812 208 9,762 36,020 45,782 2,176 43,606 — — 2025 Avalon Benbrook Benbrook, TX 301 3,623 57,314 96 3,623 57,410 61,033 3,733 57,300 — — 2025 Avalon Castle Hills Lewisville, TX 276 7,522 59,007 396 7,522 59,403 66,925 3,369 63,556 — — 2025 Avalon Frisco Frisco, TX 330 6,559 74,620 127 6,559 74,747 81,306 4,699 76,607 — — 2025 Avalon Frisco North Frisco, TX 349 12,118 77,253 155 12,118 77,408 89,526 5,356 84,170 — — 2025 eaves North Dallas Dallas, TX 372 16,558 60,334 166 16,558 60,500 77,058 4,908 72,150 — — 2025 Avalon Bothell Commons Bothell, WA 467 26,699 206,444 156 26,699 206,600 233,299 14,874 218,425 225,208 — 2024 Avalon Redmond Campus Redmond, WA 214 7,007 81,817 104 7,007 81,921 88,928 5,657 83,271 85,846 — 2024 eaves Redmond Campus II Redmond, WA 40 10,951 4,949 — 10,951 4,949 15,900 60 15,840 — — 1987/2025 Avalon Alderwood Place Lynnwood, WA 328 12,524 109,227 7 12,524 109,234 121,758 2,261 119,497 — — 2022/2025 The Park Loggia Commercial New York, NY N/A 77,393 76,410 12,247 77,393 88,657 166,050 19,629 146,421 148,167 — 2019 TOTAL OTHER STABILIZED 8,186 $ 464,129 $ 2,337,710 $ 60,159 $ 464,129 $ 2,397,869 $ 2,861,998 $ 303,796 $ 2,558,202 $ 1,691,869 $ — TOTAL CURRENT COMMUNITIES (5) 85,107 $ 4,787,142 $ 19,050,340 $ 2,886,506 $ 4,787,142 $ 21,936,846 $ 26,723,988 $ 8,748,972 $ 17,975,016 $ 17,572,851 $ 723,152 DEVELOPMENT (5) F-65 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon Pleasanton Pleasanton, CA 362 $ 6,202 $ 118,419 $ 2 $ 6,202 $ 118,421 $ 124,623 $ 395 $ 124,228 $ 20,275 $ — N/A Avalon Mission Valley (3) San Diego, CA 621 — 41,756 113 — 41,869 41,869 — 41,869 — — N/A Kanso Hillcrest San Diego, CA 182 — 40,718 56 — 40,774 40,774 — 40,774 15,807 — N/A Avalon San Ramon San Ramon, CA 456 — 37,557 — — 37,557 37,557 — 37,557 — — N/A Avalon Westminster Promenade Westminster, CO 312 6,291 105,184 — 6,291 105,184 111,475 5,255 106,220 112,719 — 2024 Avalon Governor's Park Denver, CO 304 10,302 126,946 — 10,302 126,946 137,248 5,523 131,725 134,764 — 2024 Avalon Parker Parker, CO 312 — 56,148 — — 56,148 56,148 — 56,148 — — N/A Avalon South Miami South Miami, FL 290 24,472 144,735 — 24,472 144,735 169,207 1,041 168,166 126,402 — 2025 Avalon North Palm Beach Lake Park, FL 279 1,241 50,037 — 1,241 50,037 51,278 358 50,920 — — N/A Avalon Kendall Kendall, FL 224 — 38,324 — — 38,324 38,324 — 38,324 — — N/A Avalon Quincy Adams Quincy, MA 288 — 91,394 95 — 91,489 91,489 — 91,489 38,834 — N/A Avalon Billerica Billerica, MA 200 — 16,789 — — 16,789 16,789 — 16,789 — — N/A Avalon Annapolis Annapolis, MD 508 47,599 141,862 12 47,599 141,874 189,473 4,722 184,751 173,284 — 2025 Avalon Hunt Valley West Hunt Valley, MD 322 10,021 86,721 — 10,021 86,721 96,742 1,426 95,316 79,435 — 2025 AVA Brewer's Hill Baltimore, MD 418 — 44,508 — — 44,508 44,508 — 44,508 23,182 — N/A Avalon Townhome Collection Arundel Mills Hanover, MD 90 — 6,537 — — 6,537 6,537 — 6,537 — — N/A Avalon Durham Durham, NC 336 17,331 100,922 — 17,331 100,922 118,253 5,472 112,781 115,657 — 2024 F-66 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Avalon Lake Norman Mooresville, NC 345 5,575 93,096 — 5,575 93,096 98,671 912 97,759 59,909 — N/A Avalon Carmel Charlotte, NC 360 — 88,292 — — 88,292 88,292 — 88,292 29,299 — N/A Avalon Oakridge I Durham, NC 459 — 57,271 — — 57,271 57,271 — 57,271 25,229 — N/A Avalon Brier Creek Durham, NC 400 — 33,258 — — 33,258 33,258 — 33,258 — — N/A Avalon Southpoint Durham, NC 394 — 16,385 — — 16,385 16,385 — 16,385 — — N/A Avalon W Squared at Princeton Junction West Windsor, NJ 535 7,336 188,361 — 7,336 188,361 195,697 525 195,172 118,103 — N/A Avalon Princeton on Harrison Princeton, NJ 200 8,891 68,871 — 8,891 68,871 77,762 2,078 75,684 68,584 — 2025 Avalon Wayne Wayne, NJ 473 3,602 147,252 — 3,602 147,252 150,854 371 150,483 73,596 — N/A Avalon Parsippany Parsippany, NJ 410 7,827 130,370 — 7,827 130,370 138,197 296 137,901 61,470 — N/A Avalon at Becker Farm Roseland, NJ 533 2,389 148,361 — 2,389 148,361 150,750 58 150,692 65,048 — N/A Kanso Parsippany Parsippany, NJ 280 — 30,552 — — 30,552 30,552 — 30,552 — — N/A Avalon Montville Pine Brook, NJ 349 8,471 117,315 1 8,471 117,316 125,787 8,371 117,416 121,183 — 2024 Avalon Plano Plano, TX 155 — 19,949 — — 19,949 19,949 — 19,949 14,502 — N/A Avalon Tech Ridge I Austin, TX 544 — 92,397 — — 92,397 92,397 — 92,397 29,142 — N/A Avalon Northwest Hills Austin, TX 252 — 16,368 — — 16,368 16,368 — 16,368 — — N/A TOTAL DEVELOPMENT 11,193 $ 167,550 $ 2,496,655 $ 279 $ 167,550 $ 2,496,934 $ 2,664,484 $ 36,803 $ 2,627,681 $ 1,506,424 $ — Land Held for Development N/A $ 123,751 $ 8,663 $ — $ 123,751 $ 8,663 $ 132,414 $ — $ 132,414 $ 151,922 $ — F-67 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) 2025 2024 2025 Initial Cost Total Cost Community City and state # of homes Land and Improvements Building /Construction inProgress &Improvements CostsSubsequent toAcquisition /Construction Land and Improvements Building /Construction inProgress &Improvements Total AccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Total Cost,Net ofAccumulatedDepreciation Encumbrances Year ofCompletion /Acquisition Corporate Overhead N/A 49,968 11,414 53,498 49,968 64,912 114,880 43,749 71,131 80,458 7,375,000 2025 Disposed Communities N/A — — — — — — — — 455,407 — TOTAL 96,300 $ 5,128,411 $ 21,567,072 $ 2,940,283 $ 5,128,411 $ 24,507,355 $ 29,635,766 $ 8,829,524 $ 20,806,242 $ 19,767,062 $ 8,098,152 (6) _________________________________(1)Some or all of the land or an associated parking structure for this community is subject to a finance lease. (2)This community was under redevelopment for some or all of 2025, with the redevelopment activities not expected to materially impact community operations, and therefore this community is included in the Same Store portfolio and not classified as a Redevelopment Community.(3)Some or all of the land for this community is subject to an operating lease.(4)As of December 31, 2025, this community qualified as held for sale. (5)Current and Development Communities excludes Unconsolidated Communities and Unconsolidated Development Communities.(6)Balance outstanding represents total amount due at maturity, and excludes deferred financing costs and debt discount associated with the unsecured and secured notes of $45,620 and $13,588, respectively. F-68 AVALONBAY COMMUNITIES, INC.REAL ESTATE AND ACCUMULATED DEPRECIATIONDecember 31, 2025(Dollars in thousands) Amounts include real estate assets held for sale. The aggregate cost of total real estate for federal income tax purposes was approximately $28,049,554 at December 31, 2025. The changes in total real estate assets for the years ended December 31, 2025, 2024 and 2023 are as follows: December 31, 2025 December 31, 2024 December 31, 2023 Balance, beginning of period $ 27,949,782 $ 26,864,833 $ 25,871,363 Acquisitions, construction costs and improvements (1) 2,385,984 1,602,790 1,272,558 Dispositions, including casualty losses, and other activity (700,000) (517,841) (279,088) Balance, end of period $ 29,635,766 $ 27,949,782 $ 26,864,833 _________________________________(1) 2023 amounts have been adjusted to reflect the reclassification of software development costs from Furniture, fixtures and equipment to Prepaid expenses and other assets on the Consolidated Balance Sheet. The changes in accumulated depreciation for the years ended December 31, 2025, 2024 and 2023, are as follows: December 31, 2025 December 31, 2024 December 31, 2023 Balance, beginning of period $ 8,182,720 $ 7,521,962 $ 6,878,556 Depreciation (1) 913,376 846,853 781,313 Dispositions, including casualty losses, and other activity (266,572) (186,095) (137,907) Balance, end of period $ 8,829,524 $ 8,182,720 $ 7,521,962 _________________________________(1) 2023 amounts have been adjusted to reflect the reclassification of software development costs from Furniture, fixtures and equipment to Prepaid expenses and other assets on the Consolidated Balance Sheet. F-69

EX-99.3 5 eqr-ex99_3.htm EX-99.3 EX-99.3 Exhibit 99.3 AVALONBAY COMMUNITIES, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Dollars in thousands, except per share data) March 31, 2026 December 31, 2025 (unaudited) ASSETS Real estate: Land and improvements $ 4,989,148 $ 4,960,568 Buildings and improvements 21,444,491 21,252,137 Furniture, fixtures and equipment 1,596,077 1,546,813 28,029,716 27,759,518 Less accumulated depreciation (8,914,545) (8,686,084) Net operating real estate 19,115,171 19,073,434 Construction in progress, including land 1,575,669 1,458,795 Land held for development 135,134 123,751 Real estate assets held for sale, net — 150,262 Total real estate, net 20,825,974 20,806,242 Cash and cash equivalents 121,231 187,234 Restricted cash 169,863 165,849 Unconsolidated investments 193,271 193,441 Deferred development costs 68,765 73,237 Prepaid expenses and other assets 602,145 618,597 Right of use lease assets 145,704 147,537 Total assets $ 22,126,953 $ 22,192,137 LIABILITIES AND EQUITY Unsecured debt, net $ 7,881,320 $ 7,879,380 Variable rate unsecured credit facility and commercial paper, net 769,722 739,608 Mortgage notes payable, net 709,176 709,564 Dividends payable 251,694 250,548 Payables for construction 107,546 92,267 Accrued expenses and other liabilities 391,768 391,973 Lease liabilities 163,517 165,200 Accrued interest payable 76,415 68,591 Resident security deposits 61,174 60,689 Total liabilities 10,412,332 10,357,820 Commitments and contingencies Equity: Preferred stock, $0.01 par value; $25 liquidation preference; 50,000,000 shares authorized at March 31, 2026 and December 31, 2025; zero shares issued and outstanding at March 31, 2026 and December 31, 2025 — — Common stock, $0.01 par value; 280,000,000 shares authorized at March 31, 2026 and December 31, 2025; 139,111,007 and 140,080,657 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 1,391 1,401 Additional paid-in capital 11,117,451 11,212,296 Accumulated earnings less dividends 339,630 371,157 Accumulated other comprehensive income 32,453 26,486 Total stockholders' equity 11,490,925 11,611,340 Noncontrolling interests 223,696 222,977 1 Total equity 11,714,621 11,834,317 Total liabilities and equity $ 22,126,953 $ 22,192,137 See accompanying notes to Condensed Consolidated Financial Statements. 2 AVALONBAY COMMUNITIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)(Dollars in thousands, except per share data) For the three months ended March 31, 2026 2025 Revenue: Rental and other income $ 768,446 $ 744,138 Management, development and other fees 1,833 1,742 Total revenue 770,279 745,880 Expenses: Operating expenses, excluding property taxes 198,419 187,030 Property taxes 90,109 81,831 Expensed transaction, development and other pursuit costs, net of recoveries 3,416 4,744 Interest expense, net 71,489 59,864 Depreciation expense 233,104 217,888 General and administrative expense 22,077 19,780 Casualty and impairment loss 4,619 — Total expenses 623,233 571,137 Loss from unconsolidated investments (6,527) (999) Structured Investment Program interest income 7,481 6,113 Gain on sale of communities 179,912 56,469 Other real estate activity 84 155 Income before income taxes 327,996 236,481 Income tax benefit 294 116 Net income 328,290 236,597 Net income attributable to noncontrolling interests (2,560) — Net income attributable to common stockholders $ 325,730 $ 236,597 Earnings per common share - basic: Net income attributable to common stockholders $ 2.33 $ 1.66 Earnings per common share - diluted: Net income attributable to common stockholders $ 2.33 $ 1.66 See accompanying notes to Condensed Consolidated Financial Statements. 3 AVALONBAY COMMUNITIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(unaudited)(Dollars in thousands) For the three months ended March 31, 2026 2025 Comprehensive income: Net income $ 328,290 $ 236,597 Other comprehensive income (loss): Gain (loss) on cash flow hedges 6,576 (3,597) Cash flow hedge gains reclassified to earnings (563) (273) Other comprehensive income (loss) 6,013 (3,870) Comprehensive income 334,303 232,727 Comprehensive income attributable to noncontrolling interests (2,606) — Comprehensive income attributable to common stockholders $ 331,697 $ 232,727 See accompanying notes to Condensed Consolidated Financial Statements. 4 AVALONBAY COMMUNITIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF EQUITY(unaudited)(Dollars in thousands) Commonstock Additionalpaid-incapital Accumulatedearningslessdividends Accumulatedothercomprehensiveincome (loss) Total stockholders' equity Noncontrolling interests Totalequity Balance at December 31, 2025 $ 1,401 $ 11,212,296 $ 371,157 $ 26,486 $ 11,611,340 $ 222,977 $ 11,834,317 Net income — — 325,730 — 325,730 2,560 328,290 Gain on cash flow hedges, net — — — 6,526 6,526 50 6,576 Cash flow hedge gains reclassified to earnings — — — (559) (559) (4) (563) Dividends declared ($1.78 per share) — — (248,883) — (248,883) (1,887) (250,770) Issuance of common stock, net of withholdings 2 (13,165) 371 — (12,792) — (12,792) Repurchase of common stock, including repurchase costs (12) (89,723) (108,745) — (198,480) — (198,480) Amortization of deferred compensation — 8,043 — — 8,043 — 8,043 Balance at March 31, 2026 $ 1,391 $ 11,117,451 $ 339,630 $ 32,453 $ 11,490,925 $ 223,696 $ 11,714,621 5 Commonstock Additionalpaid-incapital Accumulatedearningslessdividends Accumulatedothercomprehensiveincome (loss) Total stockholders' equity Noncontrolling interests Totalequity Balance at December 31, 2024 $ 1,422 $ 11,314,116 $ 591,250 $ 34,304 $ 11,941,092 $ — $ 11,941,092 Net income attributable to common stockholders — — 236,597 — 236,597 — 236,597 Loss on cash flow hedges, net — — — (3,597) (3,597) — (3,597) Cash flow hedge gains reclassified to earnings — — — (273) (273) — (273) Dividends declared to common stockholders ($1.75 per share) — — (250,265) — (250,265) — (250,265) Issuance of common stock, net of withholdings 1 (14,371) (1,096) — (15,466) — (15,466) Amortization of deferred compensation — 8,195 — — 8,195 — 8,195 Balance at March 31, 2025 $ 1,423 $ 11,307,940 $ 576,486 $ 30,434 $ 11,916,283 $ — $ 11,916,283 See accompanying notes to Condensed Consolidated Financial Statements. 6 AVALONBAY COMMUNITIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)(Dollars in thousands) For the three months ended March 31, 2026 2025 Cash flows from operating activities: Net income $ 328,290 $ 236,597 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 233,104 217,888 Amortization of deferred financing costs and debt discount 3,634 3,233 Amortization of stock-based compensation 5,699 5,662 Equity in loss of, and return on, unconsolidated investments and noncontrolling interests, net of eliminations 9,851 3,093 Casualty and impairment loss 2,007 — Expensed transaction, development and other pursuit costs, net of recoveries 3,416 4,744 Cash flow hedge gains reclassified to earnings (388) (273) Gain on sale of real estate assets (179,996) (56,660) Increase in accrued interest receivable (7,186) (5,806) Decrease (increase) in prepaid expenses and other assets 13,111 (3,157) Increase in accrued expenses, other liabilities, accrued interest payable and resident security deposits 7,391 10,582 Net cash provided by operating activities 418,933 415,903 Cash flows from investing activities: Development/redevelopment of real estate assets including land acquisitions and deferred development costs (336,820) (237,282) Acquisition of real estate assets, including partnership interest — (187,362) Capital expenditures - existing real estate assets (59,453) (48,370) Capital expenditures - non-real estate assets (514) (256) Increase (decrease) in payables for construction 15,279 (3,400) Proceeds from sale of real estate, net of selling costs 330,378 63,651 Note receivable lending (11,999) (12,560) Note receivable repayments 17,580 109 Distributions from unconsolidated entities and investment sale proceeds 180 — Unconsolidated investments (3,611) (2,395) Net cash used in investing activities (48,980) (427,865) Cash flows from financing activities: Issuance of common stock, net — 693 Repurchase of common stock, net (198,480) — Dividends paid (249,300) (243,678) Net borrowings under unsecured credit facility and commercial paper 30,114 224,942 Repayments of mortgage notes payable, including prepayment penalties (982) (1,171) Payment of deferred financing costs (224) — Payments related to tax withholding for share-based compensation (13,070) (16,353) Noncontrolling interests, joint venture and preferred equity transactions — (440) Net cash used in financing activities (431,942) (36,007) Net decrease in cash, cash equivalents and restricted cash (61,989) (47,969) Cash, cash equivalents and restricted cash, beginning of period 353,083 267,076 Cash, cash equivalents and restricted cash, end of period $ 291,094 $ 219,107 7 Cash paid during the period for interest, net of amount capitalized $ 60,407 $ 40,160 See accompanying notes to Condensed Consolidated Financial Statements. 8 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) The following table provides a reconciliation of cash, cash equivalents and restricted cash reported with the Condensed Consolidated Statements of Cash Flows (dollars in thousands): March 31, 2026 March 31, 2025 Cash and cash equivalents $ 121,231 $ 53,255 Restricted cash 169,863 165,852 Cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statements of Cash Flows $ 291,094 $ 219,107 Supplemental disclosures of non-cash investing and financing activities: During the three months ended March 31, 2026: •As described in Note 4, Equity, the Company issued 233,363 shares of common stock as part of the Company's stock-based compensation plans, of which 123,221 shares related to the conversion of performance awards to shares of common stock, and the remaining 110,142 shares valued at $19,790,000 were issued in connection with new stock grants; 1,790 shares valued at $324,000 were issued through the Company's dividend reinvestment plan; 74,065 shares valued at $13,124,000 were withheld to satisfy employees' tax withholding and other liabilities; and 402 restricted shares with an aggregate value of $79,000 were forfeited. •Common stock and DownREIT Unit dividends declared but not paid totaled $250,593,000. •The Company recorded (i) a decrease to prepaid expenses and other assets of $6,576,000 and a corresponding adjustment to accumulated other comprehensive income; and (ii) reclassified $563,000 of cash flow hedge gains from other comprehensive income to interest expense, net, to record the impact of the Company's derivative and hedging activity. During the three months ended March 31, 2025: •The Company issued 181,588 shares of common stock as part of the Company's stock-based compensation plans, of which 103,332 shares related to the conversion of performance awards to shares of common stock, and the remaining 78,256 shares valued at $17,346,000 were issued in connection with new stock grants; 811 shares valued at $176,000 were issued through the Company's dividend reinvestment plan; and 72,196 shares valued at $16,229,000 were withheld to satisfy employees' tax withholding and other liabilities. •Common stock dividends declared but not paid totaled $249,599,000. •The Company recorded (i) a decrease to prepaid expenses and other assets of $3,597,000 and a corresponding adjustment to accumulated other comprehensive income; and (ii) reclassified $273,000 of cash flow hedge gains from other comprehensive income to interest expense, net, to record the impact of the Company's derivative and hedging activity. 9 AVALONBAY COMMUNITIES, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(unaudited) 1. Organization, Basis of Presentation and Significant Accounting Policies Organization and Basis of Presentation AvalonBay Communities, Inc. (the Company, which term, unless the context otherwise requires, refers to AvalonBay Communities, Inc. together with its subsidiaries) is a Maryland corporation that has elected to be treated as a real estate investment trust ( REIT ) for federal income tax purposes under the Internal Revenue Code of 1986, as amended (the Code ). The Company develops, redevelops, acquires, owns and operates multifamily communities in Boston, Massachusetts, the New York/New Jersey metro area, the Mid-Atlantic, Seattle, Washington, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. As of March 31, 2026, the Company owned or held a direct or indirect ownership interest in 319 apartment communities containing 98,271 apartment homes in 11 states and the District of Columbia, of which 25 communities were under construction. The Company also owned or held a direct or indirect ownership interest in land or rights to land on which the Company expects to develop an additional 30 communities that, if developed as expected, will contain an estimated 9,866 apartment homes. The interim unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles ( GAAP ) for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission ( SEC ). Certain information and footnote disclosures normally included in financial statements required by GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements should be read in conjunction with the financial statements and notes included in this Form 8-K. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the operating results for the full year. Management believes the disclosures are adequate to ensure the information presented is not misleading. In the opinion of management, all adjustments and eliminations, consisting only of normal, recurring adjustments necessary for a fair presentation of the financial statements for the interim periods, have been included. Principles of Consolidation The accompanying Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, certain joint venture partnerships, subsidiary partnerships structured as DownREITs, and any variable interest entities that qualify for consolidation. All significant intercompany balances and transactions have been eliminated in consolidation. Noncontrolling Interests The Company classifies the carrying value of the DownREIT Units as noncontrolling interests, as the units may be redeemed by unitholders on or after April 30, 2026 for cash or common stock at the Company's election. Net income and comprehensive income is allocated to the DownREIT Units pro-rata based on the weighted average proportion of DownREIT Units to the weighted average combined total of outstanding common stock, participating securities, and DownREIT Units for the period. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents includes all cash and liquid investments with an original maturity of three months or less from the date acquired. Restricted cash includes principal reserve funds that are restricted for the repayment of specified secured financing, 10 amounts the Company has designated for planned 1031 exchange activity and resident security deposits. The majority of the Company's cash, cash equivalents and restricted cash are held at major commercial banks. Earnings per Common Share Basic earnings per common share is computed by dividing net income attributable to common stockholders by the weighted average number of shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common stockholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per common share. Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per common share on a diluted basis. Diluted earnings per common share was computed using the treasury stock method for performance awards, options, participating securities and forward contracts, and using the if-converted method for DownREIT Units. The Company's earnings per common share are determined as follows (dollars in thousands, except per share data): For the three months ended March 31, 2026 2025 Basic and diluted shares outstanding Weighted average common shares - basic 139,549,709 142,113,283 Effect of dilutive securities 1,263,077 373,275 Weighted average common shares - diluted 140,812,786 142,486,558 Calculation of Earnings per Common Share - basic Net income attributable to common stockholders $ 325,730 $ 236,597 Net income allocated to unvested restricted shares (649) (445) Net income attributable to common stockholders - basic $ 325,081 $ 236,152 Weighted average common shares - basic 139,549,709 142,113,283 Earnings per common share - basic $ 2.33 $ 1.66 Calculation of Earnings per Common Share - diluted Net income attributable to common stockholders $ 325,730 $ 236,597 Net income attributable to DownREIT unitholders in consolidated partnerships 2,560 — Net income - diluted $ 328,290 $ 236,597 Weighted average common shares - diluted 140,812,786 142,486,558 Earnings per common share - diluted $ 2.33 $ 1.66 Certain options to purchase shares of common stock in the amounts of 294,892, forward contracts to sell shares of common stock in the amounts of 3,680,000, and unvested performance awards in the amounts of 96,575 as of March 31, 2026 were not included in the computation of diluted earnings per common share because they were anti-dilutive for the period. Certain options to purchase shares of common stock in the amounts of 19,266, forward contracts to sell shares of common stock in the amounts of 11 3,921,738, and unvested performance awards in the amount of 43,105 as of March 31, 2025 were not included in the computation of diluted earnings per common share because they were anti-dilutive for the period. Derivative Instruments and Hedging Activities The Company enters into interest rate swap and interest rate cap agreements (collectively, Hedging Derivatives ) for interest rate risk management purposes and in conjunction with certain variable rate secured debt to satisfy lender requirements. The Company does not enter into Hedging Derivatives for trading or other speculative purposes. The Company assesses the effectiveness of qualifying hedges, both at inception and on an ongoing basis. The fair values of Hedging Derivatives that are in an asset position are recorded in prepaid expenses and other assets and the fair values of Hedging Derivatives that are in a liability position are included in accrued expenses and other liabilities on the accompanying Condensed Consolidated Balance Sheets. Fair value changes for derivatives that are not in qualifying hedge relationships are reported as a component of interest expense, net on the accompanying Condensed Consolidated Statements of Operations. For the Hedging Derivatives that qualify as effective cash flow hedges, the Company records the cumulative changes in the Hedging Derivatives' fair value in accumulated other comprehensive income on the accompanying Condensed Consolidated Statements of Comprehensive Income. Amounts recorded in accumulated other comprehensive income will be reclassified into earnings in the periods in which earnings are affected by the hedged cash flow. The effective portion of the change in fair value of the Hedging Derivatives that qualify as effective fair value hedges is reported as an adjustment to the carrying amount of the corresponding hedged item. Receipts or payments associated with the gains and losses on the Company’s cash flow hedges of future fixed rate debt issuances are presented as a component of cash flows from financing activities in the period the hedges are terminated and the receipt or payments for the Company’s cash flow hedges of interest on variable rate debt are presented as a component of cash flows from operating activities. Payments for derivatives that are not designated in hedging relationships are presented as a component of cash flows from operating activities. See Note 11, “Fair Value,” for further discussion of derivative financial instruments. Acquisitions of Investments in Real Estate The Company accounts for real estate acquisitions as either an asset acquisition or a business combination. Under either model, the Company identifies and determines the fair value of any assets acquired, liabilities assumed and any noncontrolling interest in the acquiree. Typical assets acquired and liabilities assumed include land, building, furniture, fixtures and equipment, debt and identified intangible assets and liabilities, consisting of the value of above or below market leases and in-place leases. The Company utilizes various sources to determine fair value, including its own analysis of recently acquired and existing comparable properties in its portfolio and other market data. Consideration for acquisitions is typically in the form of cash unless otherwise disclosed. For a business combination, the Company records the assets acquired and liabilities assumed based on the fair value of each respective item. For an asset acquisition, the purchase price is allocated based on the relative fair value of the net assets. The Company expenses all applicable acquisition costs for a business combination and capitalizes all applicable acquisition costs for an asset acquisition. The Company expects that acquisitions of individual operating communities will generally be asset acquisitions. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to amounts in prior years' financial statements and notes to the financial statements to conform to current year presentations as a result of changes in held for sale classification, disposition activity and segment classification. 12 Leases The Company is party to leases as both a lessor and a lessee, primarily as follows: •lessor of residential and commercial space within its apartment communities; and•lessee under (i) ground leases for land underlying current operating or development communities and certain commercial and parking facilities and (ii) office leases for its corporate headquarters and regional offices. Lessee Considerations The Company assesses whether a contract is or contains a lease based on whether the contract conveys the right to control the use of an identified asset, including specified portions of larger assets, for a period of time in exchange for consideration.The Company’s leases include both fixed and variable lease payments that are based on an index or rate such as the consumer price index (CPI) or percentage rents based on total sales. Variable lease payments are generally not included in the lease liability, but recognized as variable lease expense in the period in which they are incurred. For leases that have options to extend the term or terminate the lease early, the Company only factored the impact of such options into the lease term if the option was considered reasonably certain to be exercised. The Company determines the discount rate associated with its ground and office leases on a lease-by-lease basis using the Company’s actual borrowing rates as well as indicative market pricing for longer term rates and taking into consideration the remaining term of the lease agreements. For leases that are 12 months or less, the Company elected the practical expedient to not recognize the lease asset and liability. Lessor Considerations The Company's residential and commercial leases at its apartment communities are operating leases. For leases that include rent concessions and/or fixed and determinable rent increases, rental income is recognized on a straight-line basis over the noncancellable term of the lease, which, for residential leases, is generally one year. Some of the Company’s commercial leases have renewal options which the Company will only include in the lease term if, at the commencement of the lease, it is reasonably certain that the lessee will exercise this option. For the Company’s leases, which are comprised of a lease component and common area maintenance as a non-lease component, the Company determined that (i) the leases are operating leases, (ii) the lease component is the predominant component and (iii) all components of its operating leases share the same timing and pattern of transfer. Revenue and Gain Recognition The Company recognizes revenue for the transfer of goods and services to customers for consideration that the Company expects to receive. The majority of the Company’s revenue is derived from residential and commercial rental and other lease income, which are accounted for as discussed above, under Leases. The Company's revenue streams that are not accounted for as residential and commercial rental and other lease income include (i) management, development and other fees, (ii) non-lease related revenue and (iii) gains or losses on the sale of real estate. The following table details the Company’s revenue disaggregated by reportable operating segment, further discussed in Note 8, “Segment Reporting,” for the three months ended March 31, 2026 and 2025. Segment information for total revenue excludes real 13 estate assets that were sold from January 1, 2025 through March 31, 2026, or otherwise qualify as held for sale as of March 31, 2026, as described in Note 6, Real Estate Disposition Activities (dollars in thousands): Same Store Other Stabilized Development/Redevelopment Non-allocated (1) Total For the three months ended March 31, 2026 Management, development and other fees and other ancillary items $ — $ — $ — $ 1,833 $ 1,833 Non-lease related revenue (2) 2,296 1,556 179 — 4,031 Total non-lease revenue 2,296 1,556 179 1,833 5,864 Lease income (3) 709,122 32,310 18,585 — 760,017 Total revenue $ 711,418 $ 33,866 $ 18,764 $ 1,833 $ 765,881 For the three months ended March 31, 2025 Management, development and other fees and other ancillary items $ — $ — $ — $ 1,742 $ 1,742 Non-lease related revenue (2) 2,203 1,366 46 — 3,615 Total non-lease revenue 2,203 1,366 46 1,742 5,357 Lease income (3) 698,763 8,643 7,874 — 715,280 Total revenue $ 700,966 $ 10,009 $ 7,920 $ 1,742 $ 720,637 ______________________________(1)Represents third-party property management, developer fees and miscellaneous income and other ancillary items which are not allocated to a reportable segment.(2)Amounts include revenue streams related to leasing activities that are not considered components of a lease, and revenue streams not related to leasing activities including, but not limited to, application fees, renters insurance fees and vendor revenue sharing.(3)Represents residential and commercial rental and other lease income, as discussed above, under Leases. Due to the nature and timing of the Company’s identified revenue streams, there were no material amounts of outstanding or unsatisfied performance obligations as of March 31, 2026. Uncollectible Lease Revenue Reserves The Company recorded an aggregate offset to income for uncollectible lease revenue, net of amounts received from government rent relief programs, for its residential and commercial portfolios of $10,643,000 and $12,074,000 for the three months ended March 31, 2026 and 2025, respectively. 14 Recently Issued and Adopted Accounting Standards In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires the disaggregation for certain expenses presented on the face of an entity’s income statement in the entity's disclosures. Additionally, it requires the disclosure of selling expenses and descriptions of amounts not separately disaggregated. The new standard will be effective for annual reporting periods beginning January 1, 2027, and interim reporting periods beginning January 1, 2028. The Company is assessing the standard and does not expect it to have a material effect on the Company’s consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software, which updates the accounting for software implementation and development, specifically with respect to cost capitalization. The amendments replace the former model which considered prescriptive and sequential software development stages with an approach that is focused on management authorization and probability that the project will be completed and used for its intended purpose. The new standard will be effective for annual reporting periods beginning January 1, 2027, and interim reporting periods within those annual periods. The Company is assessing the standard and does not expect it to have a material effect on the Company's financial position or results of operations. 2. Interest Capitalized The Company capitalizes interest during the development and redevelopment of real estate assets. Capitalized interest associated with the Company's development and redevelopment activities totaled $14,557,000 and $10,479,000 for the three months ended March 31, 2026 and 2025, respectively. 15 3. Debt The Company's debt, which consists of unsecured notes, the variable rate term loan (the Term Loan ), mortgage notes payable, the Credit Facility and Commercial Paper, each as defined below, as of March 31, 2026 and December 31, 2025 is summarized below. The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of March 31, 2026 and December 31, 2025, as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, Real Estate Disposition Activities ). The weighted average interest rates in the following table for secured and unsecured debt include financing costs, including debt issuance costs as well as credit enhancement and trustees' fees, the impact of interest rate hedges and mark-to-market adjustments. March 31, 2026 December 31, 2025 Fixed rate unsecured debt (1) $ 7,925,000 3.6% $ 7,925,000 3.6% Fixed rate mortgage notes payable—conventional and tax-exempt 332,320 3.9% 332,602 3.9% Variable rate mortgage notes payable—conventional and tax-exempt 389,850 4.0% 390,550 4.0% Total mortgage notes payable and unsecured debt 8,647,170 3.6% 8,648,152 3.6% Credit Facility — —% — —% Commercial paper 770,000 4.1% 740,000 4.0% Total principal outstanding 9,417,170 3.7% 9,388,152 3.7% Less deferred financing costs and debt discount (2) (56,952) (59,600) Total $ 9,360,218 $ 9,328,552 _____________________________________(1)Includes the $550,000 Term Loan that has been swapped to an effective fixed rate of 4.44% using interest rate hedges. (2)Excludes deferred financing costs associated with the Credit Facility and Commercial Paper, which are included in Prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets. The Company has a $2,500,000,000 revolving variable rate unsecured credit facility with a syndicate of banks (the Credit Facility ) which matures in April 2030. The interest rate that would be applicable to borrowings under the Credit Facility was 4.39% at March 31, 2026 and was composed of (i) the Secured Overnight Financing Rate ( SOFR ), applicable to the period of borrowing for a particular draw of funds from the Credit Facility (e.g., one month to maturity, three months to maturity, etc.), plus (ii) the current borrowing spread to SOFR of 0.705% per annum, assuming a daily SOFR borrowing rate. The borrowing spread to SOFR can vary from SOFR plus 0.65% to SOFR plus 1.40% based upon the rating of the Company's unsecured senior notes. There is also an annual facility commitment fee of 0.12% of the borrowing capacity under the Credit Facility, which can vary from 0.10% to 0.30% based upon the rating of the Company's unsecured senior notes. The Credit Facility contains a sustainability-linked pricing component which provides for interest rate margin and commitment fee reductions or increases related to certain environmental sustainability targets, specifically greenhouse gas emission reductions, with the adjustment determined annually. The annual determination under the sustainability-linked pricing component occurred in July 2025, maintaining reductions of approximately 0.02% to the interest rate margin and 0.005% to the commitment fee due to the Company's achievement of sustainability targets. The Company has an unsecured commercial paper note program (the “Commercial Paper Program”) with a maximum amount of commercial paper notes that can be outstanding at any one time not to exceed $1,000,000,000. Under the terms of the Commercial Paper Program, the Company may issue unsecured commercial paper notes with maturities of less than one year. The Commercial Paper Program is backstopped by the Company's commitment to maintain available borrowing capacity under its Credit Facility in an amount equal to actual borrowings under the Commercial Paper Program. 16 The availability under the Company's Credit Facility as of March 31, 2026 and December 31, 2025 was as follows (dollars in thousands): March 31, 2026 December 31, 2025 Credit Facility commitment $ 2,500,000 $ 2,500,000 Credit Facility outstanding — — Commercial paper outstanding (770,000) (740,000) Letters of credit outstanding (1) (864) (864) Total Credit Facility available $ 1,729,136 $ 1,759,136 _____________________________________(1)In addition, the Company had $49,584 and $52,584 outstanding in additional letters of credit unrelated to the Credit Facility as of March 31, 2026 and December 31, 2025, respectively. In the aggregate, secured notes payable mature at various dates from March 2027 through July 2066, and are secured by certain apartment communities with a net carrying value of $1,198,667,000, excluding communities classified as held for sale, if any, as of March 31, 2026. Scheduled payments and maturities of secured notes payable and unsecured debt outstanding at March 31, 2026 were as follows (dollars in thousands): Year Secured notes principal payments and maturities Unsecured debt maturities Stated interest rate of unsecured debt 2026 10,829 475,000 2.95% 300,000 2.90% 2027 248,859 400,000 3.35% 2028 13,902 450,000 3.20% 400,000 1.90% 2029 126,262 450,000 3.30% 550,000 SOFR + 0.78% 2030 3,300 700,000 2.30% 400,000 4.35% 2031 3,500 600,000 2.45% 2032 4,000 700,000 2.05% 2033 5,000 350,000 5.00% 400,000 5.30% 2034 10,900 400,000 5.35% 2035 13,400 400,000 5.00% Thereafter 282,218 350,000 3.90% 300,000 4.15% 300,000 4.35% $ 722,170 $ 7,925,000 The Company was in compliance at March 31, 2026 with customary covenants under the Credit Facility, the Term Loan and the indentures under which the unsecured notes were issued. 17 4. Equity As of March 31, 2026 and December 31, 2025, the Company's charter had authorized for issuance a total of 280,000,000 shares of common stock and 50,000,000 shares of preferred stock. During the three months ended March 31, 2026, the Company: i.issued 1,790 shares of common stock through the Company's dividend reinvestment plan;ii.issued 233,363 shares of common stock in connection with restricted stock grants and the conversion of performance awards to shares of common stock;iii.withheld 74,065 shares of common stock to satisfy employees' tax withholding and other liabilities;iv.canceled 402 shares of restricted common stock upon forfeiture; andv.repurchased 1,130,336 shares of common stock through the 2025 Stock Repurchase Program and 2026 Stock Repurchase Program, discussed below. Deferred compensation granted under the Company's Second Amended and Restated 2009 Equity Incentive Plan (the Plan ) does not impact the Company's Condensed Consolidated Financial Statements until recognized as compensation cost. The Company has a continuous equity program (the CEP ) under which the Company may sell (and/or enter into forward sale agreements for the sale of) up to $1,000,000,000 of its common stock from time to time. During the three months ended March 31, 2026 and 2025, the Company had no sales under the CEP. As of March 31, 2026, the Company had $623,997,000 remaining authorized for issuance under the program. In addition to the CEP, during the year ended December 31, 2024, the Company completed an underwritten public offering pursuant to which it entered into forward contracts to sell 3,680,000 shares of common stock at a discount to the closing price of $226.52 per share for approximate net proceeds of $808,606,000 based on the initial forward price. Settlement of the forward contracts is expected to occur on one or more dates not later than December 31, 2026. The final proceeds will be determined on the date(s) of settlement and are subject to certain customary adjustments for dividends and a daily interest factor.In February 2026, the Company terminated its then-existing stock repurchase program (the 2025 Stock Repurchase Program ) and adopted a new stock repurchase program under which the Company may acquire shares of its common stock in open market or negotiated transactions up to an aggregate purchase price of $1,000,000,000 (the 2026 Stock Repurchase Program ). Purchases of common stock under the 2026 Stock Repurchase Program may occur from time to time at the Company’s discretion. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities. The 2026 Stock Repurchase Program does not have an expiration date and may be suspended or terminated at any time without prior notice. During the three months ended March 31, 2026, the Company repurchased 1,130,336 shares of common stock at an average price of $175.59 per share, including fees, for a total of $198,480,000 under the 2025 Stock Repurchase Program and the 2026 Stock Repurchase Program. As of March 31, 2026, the Company had $914,354,000 remaining capacity under the 2026 Stock Repurchase Program. 5. Investments Structured Investment Program The Company operates a Structured Investment Program (the SIP ), an investment platform through which the Company provides mezzanine loans or preferred equity to third-party multifamily developers. During the three months ended March 31, 2026, the Company received full repayment of $17,580,000 which includes principal and interest for one mezzanine loan. As of March 31, 2026, the Company had eight commitments to fund up to $226,785,000 in the aggregate with a weighted average rate of return of 11.8% and a weighted average final maturity date of October 2028. As of March 31, 2026, the Company had funded $209,827,000 of these commitments and recognized interest income, exclusive of expected credit losses, of $7,216,000 and $6,130,000 for the three months ended March 31, 2026 and 2025, respectively, from the SIP. Interest income and any change in 18 the expected credit loss are included as a component of Structured Investment Program interest income on the accompanying Condensed Consolidated Statements of Operations. The Company evaluates each SIP commitment to determine the classification as a loan or an investment in a real estate development project. As of March 31, 2026, all of the SIP commitments are classified as loans. The Company includes amounts outstanding under the SIP as a component of prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets. The Company evaluates the credit risk for each commitment on an ongoing basis, estimating the reserve for credit losses using relevant available information from internal and external sources. Market-based historical credit loss data provides the basis for the estimation of expected credit losses, with adjustments, if necessary, for differences in current commitment-specific risk characteristics, such as the amount of equity capital provided by a borrower, amount of senior debt secured by the project, nature of the real estate being developed or other factors. Unconsolidated Investments As of March 31, 2026, the Company had investments in four unconsolidated entities with real estate holdings, with ownership interests ranging from 20.0% to 28.6%, coupled with other unconsolidated investments including third-party property technology and sustainability focused companies and investment management funds. The Arts District joint venture, in which the Company holds a 25% ownership interest, owns one apartment community that is subject to a mortgage loan with an outstanding balance of $162,911,000 as of March 31, 2026. The Company has provided the lender a partial payment guarantee for 25% of the loan's maximum borrowing capacity. Any amounts payable under the 25% loan guarantee by the Company are obligations of the joint venture partners in proportion to their ownership interest, and in the event the Company is obligated to perform under its loan guarantee, its joint venture partner is obligated to reimburse the Company for 75% of amounts paid. The Company accounts for its unconsolidated investments under the equity method of accounting, net asset value or the measurement alternative with the carrying amount of the investment adjusted to fair value when there is an observable transaction for the same or similar investment of the same issuer indicating a change in fair value. The significant accounting policies of the unconsolidated investments are consistent with those of the Company in all material respects. Certain of these investments are subject to various buy‑sell provisions or other rights which are customary in real estate joint venture agreements. The Company and its partners in these entities may initiate these provisions to either sell the Company's interest or acquire the interest from the Company's joint venture partner. 19 Expensed Transaction, Development and Other Pursuit Costs The Company capitalizes costs associated with its development activities to the basis of land held when future development is probable, or if the Company has either not yet acquired the land or if the project is subject to a leasehold interest, the costs are capitalized as deferred development costs ( Development Rights ). Future development of these Development Rights is dependent upon various factors, including zoning and regulatory approval, rental market conditions, construction costs and the availability of capital. Costs incurred for pursuits for which future development is not yet considered probable are expensed as incurred. If the Company determines a Development Right is no longer probable, the Company recognizes any necessary expense to write down its basis. The Company assesses its portfolio of land held for development and land held for investment for impairment if the intent of the Company changes with respect to either the development of, or the expected holding period for, the land. The Company incurred expenses of $3,416,000 and $4,744,000 for the three months ended March 31, 2026 and 2025, respectively, for expensed transaction, development and other pursuit costs, net of recoveries, which include costs related to development pursuits that were not yet probable of future development at the time incurred, or for pursuits that the Company determined are no longer probable of being developed. The amount for the three months ended March 31, 2025 includes a write-off of $3,668,000 for one development opportunity that the Company determined was no longer probable. These costs are included in expensed transaction, development and other pursuit costs, net of recoveries on the accompanying Condensed Consolidated Statements of Operations. These costs can vary greatly, and the costs incurred in any given period may be significantly different in future periods. Long-Lived Assets Casualty Loss For the three months ended March 31, 2026, the Company recognized $4,619,000 of expense from property damage at certain of the Company's communities, reported as casualty and impairment loss on the accompanying Condensed Consolidated Statements of Operations. The expense for the three months ended March 31, 2026 relates to damage from a water pipe break at a community in New Jersey and damage at communities throughout the portfolio from winter storms. 6. Real Estate Disposition Activities The following real estate sales occurred during the three months ended March 31, 2026 (dollars in thousands): Community name Location Period of sale Apartment homes Gross sales price Gain on disposition (1) Commercial square feet Avalon Sunset Towers San Francisco, CA Q1 2026 243 $ 105,000 $ 85,567 — Avalon White Plains White Plains, NY Q1 2026 407 166,000 84,408 — Avalon The Albemarle Washington D.C. Q1 2026 234 69,750 9,713 1,000 Total 884 $ 340,750 $ 179,688 1,000 _________________________________(1) Gain on disposition was reported in gain on sale of communities on the accompanying Condensed Consolidated Statements of Operations. At March 31, 2026, the Company had no real estate assets that qualified as held for sale. 7. Commitments and Contingencies Legal Contingencies The Company recognizes a loss associated with contingent legal matters when the loss is probable and estimable. In 2022 and early 2023, the Company was named as a defendant in cases brought by private litigants alleging antitrust violations by RealPage, Inc. and owners and/or operators of multifamily housing which utilize revenue management systems provided by 20 RealPage, Inc. The Company engaged with the plaintiffs' counsel to explain why it believed that these cases were without merit as they pertained to the Company. Following these discussions, the plaintiffs filed a notice of voluntary dismissal in July 2023, which resulted in the Company being dismissed without prejudice from these cases. Subsequently, on November 1, 2023, the District of Columbia filed a lawsuit in the Superior Court of the District of Columbia against RealPage, Inc. and a number of owners and/or operators of multifamily housing in the District of Columbia, including the Company, alleging that the defendants violated the District of Columbia Antitrust Act by unlawfully agreeing to use RealPage, Inc. revenue management systems and sharing sensitive data (the “D.C. Antitrust Litigation”). The court has denied the Company's motions to dismiss and for judgment on the pleadings. On January 15, 2025, the Office of the Attorney General of the State of Maryland filed a lawsuit similar to the D.C. Antitrust Litigation in the Circuit Court for Prince George’s County, Maryland in which RealPage, Inc. and a number of owners and/or operators of multifamily properties in Maryland, including the Company, have been named and alleged to have violated state antitrust law (the “Maryland Antitrust Litigation”). On February 28, 2025, the Company filed a motion to dismiss. On April 23, 2025, the Attorney General of the State of New Jersey and the New Jersey Division of Consumer Affairs filed a lawsuit similar to the D.C. Antitrust Litigation and the Maryland Antitrust Litigation in the U.S. District Court for the District of New Jersey. The lawsuit alleges that RealPage, Inc. and a number of owners and/or operators of multifamily properties in New Jersey, including the Company, violated federal and state antitrust laws and the state consumer fraud law (the “New Jersey Antitrust Litigation”) by unlawfully agreeing to use RealPage, Inc. revenue management systems and other related actions. On July 29, 2025, the Company filed a motion to dismiss. On March 31, 2026, the court granted without prejudice the Company’s motion with respect to the federal and state antitrust claims but denied it with respect to the state consumer fraud claim. See Note 12, Subsequent Events, for further discussion of the New Jersey Antitrust Litigation. While the Company intends to vigorously defend against the D.C. Antitrust Litigation, the Maryland Antitrust Litigation and the New Jersey Antitrust Litigation, the Company is unable to predict the outcome or estimate the amount of loss, if any, that may result from the lawsuits. The Company is involved in various other claims and/or administrative proceedings that arise in the ordinary course of its business. While no assurances can be given, the Company does not currently believe that any of these other outstanding litigation matters, individually or in the aggregate, will have a material adverse effect on its financial condition or results of operations. Lease Obligations The Company owns seven apartment communities, two commercial properties and one development community located on land subject to ground leases expiring between July 2046 and May 2123. The Company has purchase options for all ground leases expiring prior to 2062. The ground leases for six of the seven apartment communities, the two commercial properties and one development community are operating leases, with rental expense recognized on a straight-line basis over the lease term. In addition, the Company is party to 13 leases for its corporate and regional offices with varying terms through August 2031, all of which are operating leases. During the three months ended March 31, 2026, the Company did not enter into any new ground leases. The ground lease for the development community includes a completion guaranty that obligates the Company to complete construction of the community and certain off-site infrastructure improvements prior to May 2030. The Company expects to complete construction in Q1 2029 for an estimated total capital cost of $302,000,000. As of March 31, 2026 and December 31, 2025, the Company had total operating lease assets of $118,168,000 and $119,888,000, respectively, and lease obligations of $143,655,000 and $145,319,000, respectively, reported as components of right of use lease assets and lease liabilities, respectively, on the accompanying Condensed Consolidated Balance Sheets. The Company incurred costs of $3,924,000 and $3,935,000 for the three months ended March 31, 2026 and 2025, respectively, related to operating leases. 21 The Company has one apartment community located on land subject to a ground lease and four leases for portions of parking garages adjacent to apartment communities that are finance leases. As of March 31, 2026 and December 31, 2025, the Company had total finance lease assets of $27,536,000 and $27,649,000, respectively, and total finance lease obligations of $19,862,000 and $19,881,000, respectively, reported as components of right of use lease assets and lease liabilities on the accompanying Condensed Consolidated Balance Sheets. 8. Segment Reporting The Company's reportable operating segments include Same Store, Other Stabilized and Development/Redevelopment. Annually as of January 1, the Company determines which of its communities fall into each of these categories and generally maintains that classification throughout the year for the purpose of reporting segment operations, unless disposition or redevelopment plans regarding a community change. In addition, the Company owns land for future development and has other corporate assets that are not allocated to an operating segment. The Company's segment disclosures present the measure(s) used by the Chief Operating Decision Maker ( CODM ) for assessing each segment's performance. The Company's CODM is comprised of several members of its executive management team, including its Chief Executive Officer and President, Chief Financial Officer, Chief Investment Officer, Chief Operating Officer, and Executive Vice President- Portfolio and Asset Management. The CODM uses net operating income ( NOI ) as the primary financial measure for Same Store communities and Other Stabilized communities. NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excluding corporate-level income (including management, development and other fees), property management and other indirect operating expenses, net of corporate income, expensed transaction, development and other pursuit costs, net of recoveries, interest expense, net, loss on extinguishment of debt, net, general and administrative expense, income from unconsolidated investments, Structured Investment Program interest income, depreciation expense, income tax expense (benefit), casualty and impairment loss, gain on sale of communities, other real estate activity and net operating income from real estate assets sold or held for sale. The CODM evaluates the Company's financial performance on a consolidated residential and commercial basis. The commercial results attributable to the non-apartment components of the Company's mixed-use communities and other nonresidential operations represent 1.6% and 2.0% of total NOI for the three months ended March 31, 2026 and 2025, respectively. Although the Company considers NOI a useful measure of a community's or communities' operating performance, NOI should not be considered an alternative to net income or net cash flow from operating activities, as determined in accordance with GAAP. NOI excludes a number of income and expense categories as detailed in the reconciliation of NOI to net income and consistent with how the Company's CODM evaluates total NOI. 22 A reconciliation of NOI to net income for the three months ended March 31, 2026 and 2025 is as follows (dollars in thousands): For the three months ended March 31, 2026 2025 Net income $ 328,290 $ 236,597 Property management and other indirect operating expenses, net of corporate income 38,100 36,100 Expensed transaction, development and other pursuit costs, net of recoveries 3,416 4,744 Interest expense, net 71,489 59,864 General and administrative expense 22,077 19,780 Loss from unconsolidated investments 6,527 999 Structured Investment Program interest income (7,481) (6,113) Depreciation expense 233,104 217,888 Income tax benefit (294) (116) Casualty and impairment loss 4,619 — Gain on sale of communities (179,912) (56,469) Other real estate activity (84) (155) Net operating income from real estate assets sold or held for sale (2,358) (16,724) Net operating income $ 517,493 $ 496,395 The following is a summary of NOI from real estate assets sold or held for sale for the periods presented (dollars in thousands): For the three months ended March 31, 2026 2025 Rental income from real estate assets sold or held for sale $ 4,398 $ 25,243 Operating expenses from real estate assets sold or held for sale (2,040) (8,519) Net operating income from real estate assets sold or held for sale $ 2,358 $ 16,724 The primary performance measure for communities under development or redevelopment depends on the stage of completion. While under development, management monitors actual construction costs against budgeted costs as well as lease-up pace and rent levels compared to budget. The following table details the Company's segment information as of the dates specified (dollars in thousands). The segments are classified based on the individual community's status at January 1, 2026. Segment information for the three months ended March 31, 2026 and 2025 has been adjusted to exclude the real estate assets that were sold from January 1, 2025 through March 31, 2026, or otherwise qualify as held for sale as of March 31, 2026, as described in Note 6, Real Estate Disposition Activities. 23 For the three months ended March 31, 2026 Same Store Other Stabilized Development / Redevelopment Total (1) (2) Total Revenue $ 711,418 $ 33,866 $ 18,764 $ 764,048 Same Store Operating Expense Property Taxes (82,042) (82,042) Payroll (40,311) (40,311) Repairs & Maintenance (39,249) (39,249) Utilities (33,644) (33,644) Office Operations (16,211) (16,211) Insurance (10,449) (10,449) Marketing (3,632) (3,632) Same Store Operating Expense (225,538) — — (225,538) Non-Same Store Operating Expense — (12,843) (8,174) (21,017) Total Expenses (225,538) (12,843) (8,174) (246,555) Total NOI $ 485,880 $ 21,023 $ 10,590 $ 517,493 Gross Real Estate $ 25,209,461 $ 1,721,462 $ 2,568,160 $ 29,499,083 For the three months ended March 31, 2025 Same Store Other Stabilized Development / Redevelopment Total (1) (2) Total Revenue $ 700,966 $ 10,009 $ 7,920 $ 718,895 Same Store Operating Expense Property Taxes (77,363) (77,363) Payroll (39,833) (39,833) Repairs & Maintenance (37,956) (37,956) Utilities (29,721) (29,721) Office Operations (15,962) (15,962) Insurance (10,530) (10,530) Marketing (3,750) (3,750) Same Store Operating Expense (215,115) — — (215,115) Non-Same Store Operating Expense — (4,174) (3,211) (7,385) Total Expenses (215,115) (4,174) (3,211) (222,500) Total NOI $ 485,851 $ 5,835 $ 4,709 $ 496,395 Gross Real Estate $ 24,896,320 $ 941,909 $ 1,329,542 $ 27,167,771 __________________________________(1)Does not include non-allocated revenue. Non-allocated revenue represents third-party property management, developer fees and miscellaneous income and other ancillary items which are not allocated to a reportable segment. Non-allocated revenue is $1,833 and $1,742 for the three months ended March 31, 2026 and 2025, respectively. (2)Does not include non-allocated gross real estate and land held for development. Non-allocated gross real estate is $106,319 and $118,630 as of March 31, 2026 and 2025, respectively. Land held for development is $135,134 and $141,978 as of March 31, 2026 and 2025, respectively. 24 9. Stock-Based Compensation Plans As part of its long-term compensation plans, the Company has granted stock options, performance awards and restricted stock under the Plan. Details of the outstanding awards and activity under the Plan for the three months ended March 31, 2026 are presented below. Stock Options: Options Weighted average exerciseprice per option Options Outstanding at December 31, 2025 271,576 $ 183.28 Granted (1) 23,316 179.67 Exercised — — Forfeited — — Expired — — Options Outstanding at March 31, 2026 294,892 $ 182.99 Options Exercisable at March 31, 2026 261,043 $ 182.53 __________________________________(1)All options are from recipient elections to receive a portion of earned restricted stock awards in the form of stock options. Performance Awards: Performance awards Weighted average grant date fair value per award Outstanding at December 31, 2025 256,377 $ 199.94 Granted 99,172 173.72 Change in awards based on performance (1) 31,695 198.68 Converted to shares of common stock (123,221) 198.41 Forfeited (1,136) 206.88 Outstanding at March 31, 2026 262,887 $ 190.58 __________________________________(1)Represents the change in the number of performance awards earned based on performance achievement. The Company grants performance awards based on (i) the total shareholder return metrics for the Company’s common stock and (ii) financial metrics related to operating performance and leverage metrics of the Company. The number of performance awards granted that are based on total shareholder return metrics and financial metrics are as follows: 2026 Total shareholder return metrics 54,543 Financial metrics 44,629 Total granted 99,172 25 The Company used a Monte Carlo model to assess the compensation cost associated with the portion of the performance awards granted for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows: 2026 Dividend yield 4.0% Estimated volatility over the life of the plan (1) 17.2% - 21.7% Risk free rate 3.39% - 3.43% Estimated performance award value based on total shareholder return measure $168.69 __________________________________(1)Estimated volatility over the life of the plan is using 50% historical volatility and 50% implied volatility. For the portion of the performance awards granted in 2026 for which achievement will be determined by using financial metrics, the compensation cost was based on an average grant date value of $179.67. Restricted Stock: Restricted stock shares Weighted average grant date fair value per share Outstanding at December 31, 2025 167,179 $ 195.76 Granted 110,142 179.68 Vested (86,599) 189.34 Forfeited (402) 195.63 Outstanding at March 31, 2026 190,320 $ 189.38 Total employee stock-based compensation cost recognized in income was $5,786,000 and $5,731,000 for the three months ended March 31, 2026 and 2025, respectively, and total capitalized stock-based compensation cost was $2,294,000 and $2,534,000 for the three months ended March 31, 2026 and 2025, respectively. At March 31, 2026, total unrecognized compensation cost was $57,433,000 for unvested restricted stock, stock options and performance awards, which is expected to be recognized over a weighted average period of 2.4 years. The Company reverses any previously recognized compensation cost for forfeitures as they occur. 10. Related Party Arrangements Unconsolidated Entities The Company manages unconsolidated real estate entities and provides other real estate related services to third parties, for which it receives asset management, property management, construction, development and redevelopment fee revenue. From these entities, the Company earned fees of $1,833,000 and $1,742,000 for the three months ended March 31, 2026 and 2025, respectively. In addition, the Company had outstanding receivables associated with its property and construction management roles of $1,337,000 and $1,395,000 as of March 31, 2026 and December 31, 2025, respectively. 26 Director Compensation The Company recorded non-employee director compensation expense relating to restricted stock grants and deferred stock units in the amount of $692,000 and $589,000 for the three months ended March 31, 2026 and 2025, respectively, as a component of general and administrative expense on the accompanying Condensed Consolidated Statements of Operations. Deferred compensation relating to these restricted stock grants and deferred stock units to non-employee directors was $364,000 and $910,000 on March 31, 2026 and December 31, 2025, respectively, reported as a component of prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets. 11. Fair Value Financial Instruments Carried at Fair Value Derivative Financial Instruments Hedging Derivatives are carried at fair value in the Company's financial statements. The Company minimizes its credit risk on these transactions by dealing with major, creditworthy financial institutions and monitors the credit ratings of counterparties and the exposure of the Company to any single entity. The Company believes the likelihood of realizing losses from counterparty nonperformance is remote. The Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, such as interest rate, term to maturity and volatility. The Hedging Derivatives credit valuation adjustments associated with its derivatives use Level 3 inputs, such as estimates of current credit spreads, which the Company concluded are not significant. As a result, the Company determined that its derivative valuations are classified in Level 2 of the fair value hierarchy. The following table summarizes the consolidated derivative positions at March 31, 2026 (dollars in thousands): Non-designated Hedges Cash Flow Hedges Interest Rate Caps Interest Rate Swaps Notional balance $ 357,289 $ 700,000 Weighted average interest rate (1) 4.0% N/A Weighted average capped/swapped interest rate 6.7% 3.6% Earliest maturity date July 2026 January 2027 Latest maturity date May 2029 April 2029 ____________________________________(1)For debt hedged by interest rate caps, represents the weighted average interest rate on the hedged debt prior to any impact of the associated interest rate caps. During the three months ended March 31, 2026, the Company entered into $150,000,000 of forward starting interest rate swap agreements designated as cash flow hedges of interest rate variability on future debt issuance activity through December 31, 2026. The Company expects to cash settle the swaps and either pay or receive cash for the then current fair value. Assuming that the Company issues the debt as expected, the hedging impact from these positions will then be recognized over the life of the issued debt as a yield adjustment. The Company had certain derivatives not designated as hedges during the three months ended March 31, 2026 and 2025, for which fair value changes during each of the respective periods were not material. The Company anticipates reclassifying approximately $3,437,000 of net hedging gains from accumulated other comprehensive income into earnings within the next 12 months as an offset to the hedged item during this period. 27 Financial Instruments Not Carried at Fair Value Cash, Cash Equivalents and Restricted Cash Cash, cash equivalent and restricted cash balances are held with various financial institutions within accounts designed to preserve principal. The Company monitors credit ratings of these financial institutions and the concentration of cash, cash equivalents and restricted cash balances with any one financial institution and believes the likelihood of realizing material losses related to cash, cash equivalent and restricted cash balances is remote. Cash, cash equivalents and restricted cash are carried at their face amounts, which reasonably approximate their fair values and are Level 1 within the fair value hierarchy. Other Financial Instruments Other financial instruments consist of (i) rents, (ii) other receivables, including notes receivable, (iii) prepaid expenses, (iv) accounts and construction payable and (v) accrued expenses and other liabilities. These assets and liabilities are carried at their face amounts, which reasonably approximate their fair values. The Company determined that its notes receivable approximate fair value because interest rates, yields and other terms are consistent with interest rates, yields and other terms currently available for similar instruments and are considered to be a Level 2 price within the fair value hierarchy. Equity Securities The Company has direct equity investments in third-party property technology companies. These investments are accounted for using the measurement alternative and are valued at the market price of observable transactions. During the three months ended March 31, 2026, the Company recognized an unrealized loss of $6,250,000 related to these investments, which was reported as a component of loss from unconsolidated investments on the accompanying Condensed Consolidated Statements of Operations. As of March 31, 2026, the Company had recorded cumulative fair value adjustments of $61,322,000 for net unrealized gains on equity securities. Indebtedness The Company values its fixed rate unsecured debt using quoted market prices, a Level 1 price within the fair value hierarchy. The Company values its mortgage notes payable, the Term Loan and any outstanding amounts under the Credit Facility and Commercial Paper Program using a discounted cash flow analysis on the expected cash flows of each instrument. This analysis reflects the contractual terms of the instrument, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The process also considers credit valuation adjustments to appropriately reflect the Company's nonperformance risk. The Company has concluded that the value of its mortgage notes payable, Term Loan and any outstanding amounts under the Credit Facility and Commercial Paper Program are Level 2 prices as the majority of the inputs used to value its positions fall within Level 2 of the fair value hierarchy. 28 Financial Instruments Measured/Disclosed at Fair Value on a Recurring Basis The following tables summarize the classification between the three levels of the fair value hierarchy of the Company's financial instruments measured or disclosed at fair value on a recurring basis (dollars in thousands): March 31, 2026 Description Total Fair Value Quoted Pricesin ActiveMarkets for Identical Assets(Level 1) SignificantOtherObservable Inputs (Level 2) SignificantUnobservable Inputs(Level 3) Assets Investments Notes Receivable, net $ 258,128 $ — $ 258,128 $ — Non-designated Hedges Interest Rate Caps 20 — 20 — Interest Rate Swaps - Assets 3,375 — 3,375 — Total Assets $ 261,523 $ — $ 261,523 $ — Liabilities Interest Rate Swaps - Liabilities $ 1,022 $ — $ 1,022 $ — Indebtedness Fixed rate unsecured debt 6,951,060 6,951,060 — — Mortgage notes payable, Commercial Paper and Term Loan 2,001,371 — 2,001,371 — Total Liabilities $ 8,953,453 $ 6,951,060 $ 2,002,393 $ — December 31, 2025 Description Total Fair Value Quoted Pricesin ActiveMarkets for Identical Asset(Level 1) SignificantOtherObservable Inputs (Level 2) SignificantUnobservable Inputs(Level 3) Assets Investments Notes Receivable, net $ 259,051 $ — $ 259,051 $ — Total Assets $ 259,051 $ — $ 259,051 $ — Liabilities Interest Rate Swaps - Liabilities $ 4,046 $ — $ 4,046 $ — Indebtedness Fixed rate unsecured debt 7,025,656 7,025,656 — — Mortgage notes payable, Commercial Paper and Term Loan 1,970,177 — 1,970,177 — Total Liabilities $ 8,999,879 $ 7,025,656 $ 1,974,223 $ — 29 12. Subsequent Events The Company has evaluated subsequent events through the date on which this Form 10-Q was filed, the date on which these financial statements were issued, and identified the items below for discussion. In April 2026 and through the date this Form 10-Q was filed, the Company had the following activity: •The Company entered into one new SIP commitment, agreeing to provide an aggregate investment of up to $15,000,000 in a multifamily development project in Metro NY/NJ. •On April 14, 2026, the Company filed a motion to reconsider the court’s ruling on the Company’s motion to dismiss the New Jersey Antitrust Litigation insofar as it did not dismiss the remaining state consumer fraud claim. See Note 7, Commitments and Contingencies, for further discussion of the New Jersey Antitrust Litigation. 30

EX-99.4 6 eqr-ex99_4.htm EX-99.4 EX-99.4 Exhibit 99.4 AVALONBAY COMMUNITIES, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Dollars in thousands, except per share data) June 30, 2026 December 31, 2025 (unaudited) ASSETS Real estate: Land and improvements $ 5,007,247 $ 4,960,568 Buildings and improvements 21,628,963 21,252,137 Furniture, fixtures and equipment 1,642,780 1,546,813 28,278,990 27,759,518 Less accumulated depreciation (9,116,539) (8,686,084) Net operating real estate 19,162,451 19,073,434 Construction in progress, including land 1,668,998 1,458,795 Land held for development 101,508 123,751 Real estate assets held for sale, net 41,942 150,262 Total real estate, net 20,974,899 20,806,242 Cash and cash equivalents 80,682 187,234 Restricted cash 165,436 165,849 Unconsolidated investments 199,046 193,441 Deferred development costs 75,440 73,237 Prepaid expenses and other assets 660,707 618,597 Right of use lease assets 144,141 147,537 Total assets $ 22,300,351 $ 22,192,137 LIABILITIES AND EQUITY Unsecured debt, net $ 7,408,395 $ 7,879,380 Variable rate unsecured credit facility and commercial paper, net 915,786 739,608 Mortgage notes payable, net 700,599 709,564 Dividends payable 256,954 250,548 Payables for construction 113,585 92,267 Accrued expenses and other liabilities 385,901 391,973 Lease liabilities 162,444 165,200 Accrued interest payable 65,814 68,591 Resident security deposits 62,215 60,689 Total liabilities 10,071,693 10,357,820 Commitments and contingencies Equity: Preferred stock, $0.01 par value; $25 liquidation preference; 50,000,000 shares authorized at June 30, 2026 and December 31, 2025; zero shares issued and outstanding at June 30, 2026 and December 31, 2025 — — Common stock, $0.01 par value; 280,000,000 shares authorized at June 30, 2026 and December 31, 2025; 141,875,567 and 140,080,657 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively 1,419 1,401 Additional paid-in capital 11,739,908 11,212,296 Accumulated earnings less dividends 242,188 371,157 Accumulated other comprehensive income 38,896 26,486 Total stockholders' equity 12,022,411 11,611,340 Noncontrolling interests 206,247 222,977 1 Total equity 12,228,658 11,834,317 Total liabilities and equity $ 22,300,351 $ 22,192,137 See accompanying notes to Condensed Consolidated Financial Statements. 2 AVALONBAY COMMUNITIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)(Dollars in thousands, except per share data) For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Revenue: Rental and other income $ 775,986 $ 758,601 $ 1,544,432 $ 1,502,739 Management, development and other fees 1,782 1,594 3,615 3,336 Total revenue 777,768 760,195 1,548,047 1,506,075 Expenses: Operating expenses, excluding property taxes 195,769 190,940 394,188 377,970 Property taxes 90,114 86,031 180,223 167,862 Expensed transaction, development and other pursuit costs, net of recoveries 19,976 2,493 23,392 7,237 Interest expense, net 70,070 64,801 141,559 124,665 Depreciation expense 232,975 231,730 466,079 449,618 General and administrative expense 27,137 22,997 49,214 42,777 Casualty and impairment loss — 858 4,619 858 Total expenses 636,041 599,850 1,259,274 1,170,987 Income (loss) from unconsolidated investments 7,647 (1,052) 1,120 (2,051) Structured Investment Program interest income 7,704 6,937 15,185 13,050 (Loss) gain on sale of communities (338) 99,457 179,574 155,926 Other real estate activity 223 3,637 307 3,792 Income before income taxes 156,963 269,324 484,959 505,805 Income tax (expense) benefit (70) 531 224 647 Net income 156,893 269,855 485,183 506,452 Net income attributable to noncontrolling interests (1,173) (1,190) (3,733) (1,190) Net income attributable to common stockholders $ 155,720 $ 268,665 $ 481,450 $ 505,262 Earnings per common share - basic: Net income attributable to common stockholders $ 1.11 $ 1.89 $ 3.43 $ 3.55 Earnings per common share - diluted: Net income attributable to common stockholders $ 1.11 $ 1.88 $ 3.43 $ 3.54 See accompanying notes to Condensed Consolidated Financial Statements. 3 AVALONBAY COMMUNITIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(unaudited)(Dollars in thousands) For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Comprehensive income: Net income $ 156,893 $ 269,855 $ 485,183 $ 506,452 Other comprehensive income (loss): Gain (loss) on cash flow hedges 7,178 (2,263) 13,754 (5,860) Cash flow hedge gains reclassified to earnings (687) (570) (1,250) (843) Other comprehensive income (loss) 6,491 (2,833) 12,504 (6,703) Comprehensive income 163,384 267,022 497,687 499,749 Comprehensive income attributable to noncontrolling interests (1,221) (1,190) (3,827) (1,190) Comprehensive income attributable to common stockholders $ 162,163 $ 265,832 $ 493,860 $ 498,559 See accompanying notes to Condensed Consolidated Financial Statements. 4 AVALONBAY COMMUNITIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF EQUITY(unaudited)(Dollars in thousands) Commonstock Additionalpaid-incapital Accumulatedearningslessdividends Accumulatedothercomprehensiveincome (loss) Total stockholders' equity Noncontrolling interests Totalequity Balance at December 31, 2025 $ 1,401 $ 11,212,296 $ 371,157 $ 26,486 $ 11,611,340 $ 222,977 $ 11,834,317 Net income — — 325,730 — 325,730 2,560 328,290 Gain on cash flow hedges, net — — — 6,526 6,526 50 6,576 Cash flow hedge gains reclassified to earnings — — — (559) (559) (4) (563) Dividends declared ($1.78 per share) — — (248,883) — (248,883) (1,887) (250,770) Issuance of common stock, net of withholdings 2 (13,165) 371 — (12,792) — (12,792) Repurchase of common stock, including repurchase costs (12) (89,723) (108,745) — (198,480) — (198,480) Amortization of deferred compensation — 8,043 — — 8,043 — 8,043 Balance at March 31, 2026 $ 1,391 $ 11,117,451 $ 339,630 $ 32,453 $ 11,490,925 $ 223,696 $ 11,714,621 Net income — — 155,720 — 155,720 1,173 156,893 Gain on cash flow hedges, net — — — 7,125 7,125 53 7,178 Cash flow hedge gains reclassified to earnings — — — (682) (682) (5) (687) Redemption of DownREIT Units — 2,656 — — 2,656 (16,925) (14,269) Dividends declared ($1.78 per share) — — (253,212) — (253,212) (1,745) (254,957) Issuance of common stock, net of withholdings 28 608,158 50 — 608,236 — 608,236 Amortization of deferred compensation — 11,643 — — 11,643 — 11,643 Balance at June 30, 2026 $ 1,419 $ 11,739,908 $ 242,188 $ 38,896 $ 12,022,411 $ 206,247 $ 12,228,658 5 Commonstock Additionalpaid-incapital Accumulatedearningslessdividends Accumulatedothercomprehensiveincome (loss) Total stockholders' equity Noncontrolling interests Totalequity Balance at December 31, 2024 $ 1,422 $ 11,314,116 $ 591,250 $ 34,304 $ 11,941,092 $ — $ 11,941,092 Net income attributable to common stockholders — — 236,597 — 236,597 — 236,597 Loss on cash flow hedges, net — — — (3,597) (3,597) — (3,597) Cash flow hedge gains reclassified to earnings — — — (273) (273) — (273) Dividends declared to common stockholders ($1.75 per share) — — (250,265) — (250,265) — (250,265) Issuance of common stock, net of withholdings 1 (14,371) (1,096) — (15,466) — (15,466) Amortization of deferred compensation — 8,195 — — 8,195 — 8,195 Balance at March 31, 2025 $ 1,423 $ 11,307,940 $ 576,486 $ 30,434 $ 11,916,283 $ — $ 11,916,283 Net income — — 268,665 — 268,665 1,190 269,855 Loss on cash flow hedges, net — — — (2,263) (2,263) — (2,263) Cash flow hedge gains reclassified to earnings — — — (570) (570) — (570) Issuance of DownREIT Units — — — — — 222,653 222,653 Dividends declared to noncontrolling interests ($1.19 per share) — — — — — (1,264) (1,264) Dividends declared to common stockholders ($1.75 per share) — — (249,610) — (249,610) — (249,610) Issuance of common stock, net of withholdings — 2,676 (6) — 2,670 — 2,670 Amortization of deferred compensation — 12,544 — — 12,544 — 12,544 Balance at June 30, 2025 $ 1,423 $ 11,323,160 $ 595,535 $ 27,601 $ 11,947,719 $ 222,579 $ 12,170,298 See accompanying notes to Condensed Consolidated Financial Statements. 6 AVALONBAY COMMUNITIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)(Dollars in thousands) For the six months ended June 30, 2026 2025 Cash flows from operating activities: Net income $ 485,183 $ 506,452 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 466,079 449,618 Amortization of deferred financing costs and debt discount 7,235 6,280 Amortization of stock-based compensation 13,729 14,119 Equity in loss of, and return on, unconsolidated investments and noncontrolling interests, net of eliminations 7,249 6,666 Casualty and impairment loss 2,007 858 Abandonment of development pursuits, net of recoveries 11,025 7,237 Cash flow hedge gains reclassified to earnings (961) (843) Gain on sale of real estate assets (179,881) (159,786) Increase in accrued interest receivable (14,626) (12,605) Increase in prepaid expenses and other assets (7,907) (23,264) Decrease in accrued expenses, other liabilities, accrued interest payable and resident security deposits (6,060) (1,017) Net cash provided by operating activities 783,072 793,715 Cash flows from investing activities: Development/redevelopment of real estate assets including land acquisitions and deferred development costs (650,896) (549,366) Acquisition of real estate assets, including partnership interest — (384,495) Capital expenditures - existing real estate assets (134,257) (109,039) Capital expenditures - non-real estate assets (3,322) (1,875) Increase in payables for construction 21,318 15,665 Proceeds from sale of real estate, net of selling costs 330,378 228,058 Note receivable lending (39,908) (15,630) Note receivable repayments 17,580 25 Distributions from unconsolidated entities and investment sale proceeds 180 — Unconsolidated investments (6,954) (6,553) Net cash used in investing activities (465,881) (823,210) Cash flows from financing activities: Issuance of common stock, net 609,806 3,377 Repurchase of common stock, net (198,480) — Dividends paid (498,794) (492,646) Net borrowings under unsecured credit facility and commercial paper 176,178 665,000 Repayments of mortgage notes payable, including prepayment penalties (10,153) (9,430) Issuance of unsecured debt — 450,000 Repayment of unsecured debt (475,000) (525,000) Payment of deferred financing costs (225) (15,966) Payments related to tax withholding for share-based compensation (13,219) (16,544) Noncontrolling interests, joint venture and preferred equity transactions (14,269) (1,000) Net cash (used in) provided by financing activities (424,156) 57,791 Net (decrease) increase in cash, cash equivalents and restricted cash (106,965) 28,296 7 Cash, cash equivalents and restricted cash, beginning of period 353,083 267,076 Cash, cash equivalents and restricted cash, end of period $ 246,118 $ 295,372 Cash paid during the period for interest, net of amount capitalized $ 138,050 $ 130,414 See accompanying notes to Condensed Consolidated Financial Statements. 8 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) The following table provides a reconciliation of cash, cash equivalents and restricted cash reported with the Condensed Consolidated Statements of Cash Flows (dollars in thousands): June 30, 2026 June 30, 2025 Cash and cash equivalents $ 80,682 $ 102,825 Restricted cash 165,436 192,547 Cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statements of Cash Flows $ 246,118 $ 295,372 Supplemental disclosures of non-cash investing and financing activities: During the six months ended June 30, 2026: •As described in Note 4, Equity, the Company issued 234,445 shares of common stock as part of the Company's stock-based compensation plans, of which 123,221 shares related to the conversion of performance awards to shares of common stock, and the remaining 111,224 shares valued at $19,990,000 were issued in connection with new stock grants; 2,987 shares valued at $529,000 were issued through the Company's dividend reinvestment plan; 83,467 shares valued at $14,792,000 were withheld to satisfy employees' tax withholding and other liabilities; and 1,518 restricted shares with an aggregate value of $292,000 were forfeited. •Common stock and DownREIT Unit dividends declared but not paid totaled $254,748,000. •The Company recorded (i) a decrease to prepaid expenses and other assets of $13,754,000 and a corresponding adjustment to accumulated other comprehensive income; and (ii) reclassified $1,250,000 of cash flow hedge gains from other comprehensive income to interest expense, net, to record the impact of the Company's derivative and hedging activity. During the six months ended June 30, 2025: •The Company issued 182,559 shares of common stock as part of the Company's stock-based compensation plans, of which 103,332 shares related to the conversion of performance awards to shares of common stock, and the remaining 79,227 shares valued at $17,546,000 were issued in connection with new stock grants; 1,691 shares valued at $353,000 were issued through the Company's dividend reinvestment plan; and 72,998 shares valued at $16,395,000 were withheld to satisfy employees' tax withholding and other liabilities. •The Company acquired six apartment communities, in the Dallas-Fort Worth metropolitan area, containing 1,844 apartment homes for $415,579,000, with the consideration comprised of a cash payment of $193,000,000 and the issuance of 1,059,995 units representing limited partnership interests (the “DownREIT Units”). •Common stock and DownREIT Unit dividends declared but not paid totaled $250,874,000. •The Company recorded (i) a decrease to prepaid expenses and other assets of $5,860,000 and a corresponding adjustment to accumulated other comprehensive income; and (ii) reclassified $843,000 of cash flow hedge gains from other comprehensive income to interest expense, net, to record the impact of the Company's derivative and hedging activity. 9 AVALONBAY COMMUNITIES, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(unaudited) 1. Organization, Basis of Presentation and Significant Accounting Policies Organization AvalonBay Communities, Inc. (the Company, which term, unless the context otherwise requires, refers to AvalonBay Communities, Inc. together with its subsidiaries) is a Maryland corporation that has elected to be treated as a real estate investment trust ( REIT ) for federal income tax purposes under the Internal Revenue Code of 1986, as amended (the Code ). The Company develops, redevelops, acquires, owns and operates multifamily communities in Boston, Massachusetts, the New York/New Jersey metro area, the Mid-Atlantic, Seattle, Washington, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. As of June 30, 2026, the Company owned or held a direct or indirect ownership interest in 322 apartment communities containing 99,072 apartment homes in 11 states and the District of Columbia, of which 27 communities were under construction. The Company also owned or held a direct or indirect ownership interest in land or rights to land on which the Company expects to develop an additional 31 communities that, if developed as expected, will contain an estimated 9,997 apartment homes. Proposed Merger with Equity Residential On May 20, 2026, the Company, Equity Residential, a Maryland real estate investment trust (“Equity Residential”), ERP Operating Limited Partnership, an Illinois limited partnership (the “ERP Operating Partnership”), and Canopy Merger Sub LLC, a Maryland limited liability company and a direct wholly owned subsidiary of Equity Residential (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the Merger Agreement, (i) on the closing date but prior to the effective time (the “Effective Time”) of the Merger (as defined below), the Company will contribute certain assets set forth in an exhibit to the Merger Agreement (the “Asset Contribution”) in exchange for units of partnership interest in the ERP Operating Partnership that have, in the aggregate, a value equal to the fair market value of such contributed assets and (ii) following the Asset Contribution and at the Effective Time, AvalonBay will merge with and into Merger Sub, with Merger Sub surviving as a direct, wholly owned subsidiary of Equity Residential (the “Merger” and, together with the Asset Contribution and the other transactions contemplated by the Merger Agreement, the “Transactions”). At the Effective Time, each outstanding share of AvalonBay common stock will be converted into the right to receive 2.793 Equity Residential common shares (the “Exchange Ratio”), resulting in legacy Equity Residential shareholders and former AvalonBay stockholders owning approximately 49% and 51% of the combined company, respectively. The board of trustees and board of directors of both companies, as applicable, have each unanimously approved the Merger Agreement and the Transactions. The Merger will be accounted for as a reverse acquisition under the business combination accounting rules in which Equity Residential is considered the legal acquirer because Equity Residential will issue common shares to AvalonBay stockholders, while AvalonBay is designated as the accounting acquirer based primarily on post-Merger relative ownership percentage and the composition of senior executive leadership. Consequently, Equity Residential’s historical assets and liabilities will be recorded at estimated fair value as of the closing date of the Merger, and the combined financial statements will present AvalonBay’s historical balances and results. The Merger Agreement contains provisions granting each of AvalonBay and Equity Residential the right to terminate the Merger Agreement under specified circumstances. Upon a termination of the Merger Agreement, under certain circumstances, (i) Equity Residential may be required to pay AvalonBay a termination fee of the lesser of approximately $1,005,000,000 or the maximum amount that could be paid to AvalonBay without causing it to fail to meet the REIT requirements for such year, or (ii) AvalonBay may be required to pay Equity Residential a termination fee of the lesser of approximately $1,070,000,000 or the maximum amount that could be paid to Equity Residential without causing it to fail to meet the REIT requirements for such year. 10 Following the closing of the Merger, the combined company will operate under a new name and will maintain dual headquarters in Chicago, Illinois and Arlington, Virginia. The Transactions are expected to be completed in the second half of 2026, subject to reciprocal shareholder approvals and other customary closing conditions. Basis of Presentation The interim unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles ( GAAP ) for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission ( SEC ). Certain information and footnote disclosures normally included in financial statements required by GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited financial statements should be read in conjunction with the financial statements and notes included in this Form 8-K. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the operating results for the full year. Management believes the disclosures are adequate to ensure the information presented is not misleading. In the opinion of management, all adjustments and eliminations, consisting only of normal, recurring adjustments necessary for a fair presentation of the financial statements for the interim periods, have been included. Principles of Consolidation The accompanying Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, certain joint venture partnerships, subsidiary partnerships structured as DownREITs, and any variable interest entities that qualify for consolidation. All significant intercompany balances and transactions have been eliminated in consolidation. Noncontrolling Interests The Company classifies the carrying value of the DownREIT Units as noncontrolling interests, as the units may be redeemed by unitholders on or after April 30, 2026 for cash or common stock at the Company's election. Net income and comprehensive income is allocated to the DownREIT Units pro-rata based on the weighted average proportion of DownREIT Units to the weighted average combined total of outstanding common stock, participating securities, and DownREIT Units for the period. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents includes all cash and liquid investments with an original maturity of three months or less from the date acquired. Restricted cash includes principal reserve funds that are restricted for the repayment of specified secured financing, amounts the Company has designated for planned 1031 exchange activity and resident security deposits. The majority of the Company's cash, cash equivalents and restricted cash are held at major commercial banks. Earnings per Common Share Basic earnings per common share is computed by dividing net income attributable to common stockholders by the weighted average number of shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common stockholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per common share. Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per common share on a diluted basis. Diluted earnings per common share was computed using the treasury stock method for performance awards, options, participating securities and forward contracts, and using the if-converted method 11 for DownREIT Units. The Company's earnings per common share are determined as follows (dollars in thousands, except per share data): For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Basic and diluted shares outstanding Weighted average common shares - basic 140,555,264 142,195,859 140,052,487 142,154,571 Effect of dilutive securities 1,279,505 1,096,447 1,271,292 734,861 Weighted average common shares - diluted 141,834,769 143,292,306 141,323,779 142,889,432 Calculation of Earnings per Common Share - basic Net income attributable to common stockholders $ 155,720 $ 268,665 $ 481,450 $ 505,262 Net income allocated to unvested restricted shares (327) (497) (984) (942) Net income attributable to common stockholders - basic $ 155,393 $ 268,168 $ 480,466 $ 504,320 Weighted average common shares - basic 140,555,264 142,195,859 140,052,487 142,154,571 Earnings per common share - basic $ 1.11 $ 1.89 $ 3.43 $ 3.55 Calculation of Earnings per Common Share - diluted Net income attributable to common stockholders $ 155,720 $ 268,665 $ 481,450 $ 505,262 Net income attributable to DownREIT unitholders in consolidated partnerships 1,173 1,190 3,733 1,190 Net income - diluted $ 156,893 $ 269,855 $ 485,183 $ 506,452 Weighted average common shares - diluted 141,834,769 143,292,306 141,323,779 142,889,432 Earnings per common share - diluted $ 1.11 $ 1.88 $ 3.43 $ 3.54 Certain options to purchase shares of common stock in the amounts of 42,582, forward contracts to sell shares of common stock in the amounts of 920,000, and unvested performance awards in the amounts of 96,506 as of June 30, 2026 were not included in the computation of diluted earnings per common share because they were anti-dilutive for the period. Certain options to purchase shares of common stock in the amounts of 19,266, forward contracts to sell shares of common stock in the amounts of 4,047,113, and unvested performance awards in the amount of 42,790 as of June 30, 2025 were not included in the computation of diluted earnings per common share because they were anti-dilutive for the period. Derivative Instruments and Hedging Activities The Company enters into interest rate swap and interest rate cap agreements (collectively, Hedging Derivatives ) for interest rate risk management purposes and in conjunction with certain variable rate secured debt to satisfy lender requirements. The Company does not enter into Hedging Derivatives for trading or other speculative purposes. The Company assesses the effectiveness of qualifying hedges, both at inception and on an ongoing basis. The fair values of Hedging Derivatives that are in an asset position are recorded in prepaid expenses and other assets and the fair values of Hedging Derivatives that are in a liability position are included in accrued expenses and other liabilities on the accompanying Condensed Consolidated Balance Sheets. Fair value changes for derivatives that are not in qualifying hedge relationships are reported as a component of interest expense, net on the accompanying Condensed Consolidated Statements of Operations. For the Hedging Derivatives that qualify as effective cash flow hedges, the Company records the cumulative changes in the Hedging Derivatives' fair value in accumulated other comprehensive income on the accompanying Condensed Consolidated Statements of Comprehensive Income. Amounts recorded in accumulated other comprehensive income will be reclassified into earnings in the periods in which earnings are affected by 12 the hedged cash flow. The effective portion of the change in fair value of the Hedging Derivatives that qualify as effective fair value hedges is reported as an adjustment to the carrying amount of the corresponding hedged item. Receipts or payments associated with the gains and losses on the Company’s cash flow hedges of future fixed rate debt issuances are presented as a component of cash flows from financing activities in the period the hedges are terminated and the receipt or payments for the Company’s cash flow hedges of interest on variable rate debt are presented as a component of cash flows from operating activities. Payments for derivatives that are not designated in hedging relationships are presented as a component of cash flows from operating activities. See Note 11, “Fair Value,” for further discussion of derivative financial instruments. Acquisitions of Investments in Real Estate The Company accounts for real estate acquisitions as either an asset acquisition or a business combination. Under either model, the Company identifies and determines the fair value of any assets acquired, liabilities assumed and any noncontrolling interest in the acquiree. Typical assets acquired and liabilities assumed include land, building, furniture, fixtures and equipment, debt and identified intangible assets and liabilities, consisting of the value of above or below market leases and in-place leases. The Company utilizes various sources to determine fair value, including its own analysis of recently acquired and existing comparable properties in its portfolio and other market data. Consideration for acquisitions is typically in the form of cash unless otherwise disclosed. For a business combination, the Company records the assets acquired and liabilities assumed based on the fair value of each respective item. For an asset acquisition, the purchase price is allocated based on the relative fair value of the net assets. The Company expenses all applicable acquisition costs for a business combination and capitalizes all applicable acquisition costs for an asset acquisition. The Company expects that acquisitions of individual operating communities will generally be asset acquisitions. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to amounts in prior years' financial statements and notes to the financial statements to conform to current year presentations as a result of changes in held for sale classification, disposition activity and segment classification. Leases The Company is party to leases as both a lessor and a lessee, primarily as follows: •lessor of residential and commercial space within its apartment communities; and•lessee under (i) ground leases for land underlying current operating or development communities and certain commercial and parking facilities and (ii) office leases for its corporate headquarters and regional offices. Lessee Considerations The Company assesses whether a contract is or contains a lease based on whether the contract conveys the right to control the use of an identified asset, including specified portions of larger assets, for a period of time in exchange for consideration. 13 The Company’s leases include both fixed and variable lease payments that are based on an index or rate such as the consumer price index (CPI) or percentage rents based on total sales. Variable lease payments are generally not included in the lease liability, but recognized as variable lease expense in the period in which they are incurred. For leases that have options to extend the term or terminate the lease early, the Company only factored the impact of such options into the lease term if the option was considered reasonably certain to be exercised. The Company determines the discount rate associated with its ground and office leases on a lease-by-lease basis using the Company’s actual borrowing rates as well as indicative market pricing for longer term rates and taking into consideration the remaining term of the lease agreements. For leases that are 12 months or less, the Company elected the practical expedient to not recognize the lease asset and liability. Lessor Considerations The Company's residential and commercial leases at its apartment communities are operating leases. For leases that include rent concessions and/or fixed and determinable rent increases, rental income is recognized on a straight-line basis over the noncancellable term of the lease, which, for residential leases, is generally one year. Some of the Company’s commercial leases have renewal options which the Company will only include in the lease term if, at the commencement of the lease, it is reasonably certain that the lessee will exercise this option. For the Company’s leases, which are comprised of a lease component and common area maintenance as a non-lease component, the Company determined that (i) the leases are operating leases, (ii) the lease component is the predominant component and (iii) all components of its operating leases share the same timing and pattern of transfer. Revenue and Gain Recognition The Company recognizes revenue for the transfer of goods and services to customers for consideration that the Company expects to receive. The majority of the Company’s revenue is derived from residential and commercial rental and other lease income, which are accounted for as discussed above, under Leases. The Company's revenue streams that are not accounted for as residential and commercial rental and other lease income include (i) management, development and other fees, (ii) non-lease related revenue and (iii) gains or losses on the sale of real estate. The following table details the Company’s revenue disaggregated by reportable operating segment, further discussed in Note 8, “Segment Reporting,” for the three and six months ended June 30, 2026 and 2025. Segment information for total revenue excludes real estate assets that were sold from January 1, 2025 through June 30, 2026, or otherwise qualify as held for sale as of June 30, 2026, as described in Note 6, Real Estate Disposition Activities (dollars in thousands): 14 Same Store Other Stabilized Development/Redevelopment Non-allocated (1) Total For the three months ended June 30, 2026 Management, development and other fees and other ancillary items $ — $ — $ — $ 1,782 $ 1,782 Non-lease related revenue (2) 2,938 1,661 194 — 4,793 Total non-lease revenue 2,938 1,661 194 1,782 6,575 Lease income (3) 713,370 32,236 24,017 — 769,623 Total revenue $ 716,308 $ 33,897 $ 24,211 $ 1,782 $ 776,198 For the three months ended June 30, 2025 Management, development and other fees and other ancillary items $ — $ — $ — $ 1,594 $ 1,594 Non-lease related revenue (2) 2,716 1,520 73 — 4,309 Total non-lease revenue 2,716 1,520 73 1,594 5,903 Lease income (3) 701,671 20,129 8,827 — 730,627 Total revenue $ 704,387 $ 21,649 $ 8,900 $ 1,594 $ 736,530 Same Store Other Stabilized Development/Redevelopment Non-allocated (1) Total For the six months ended June 30, 2026 Management, development and other fees and other ancillary items $ — $ — $ — $ 3,615 $ 3,615 Non-lease related revenue (2) 5,230 3,217 372 — 8,819 Total non-lease revenue 5,230 3,217 372 3,615 12,434 Lease income (3) 1,420,939 64,547 42,602 — 1,528,088 Total revenue $ 1,426,169 $ 67,764 $ 42,974 $ 3,615 $ 1,540,522 For the six months ended June 30, 2025 Management, development and other fees and other ancillary items $ — $ — $ — $ 3,336 $ 3,336 Non-lease related revenue (2) 4,915 2,885 119 — 7,919 Total non-lease revenue 4,915 2,885 119 3,336 11,255 Lease income (3) 1,398,938 28,774 16,701 — 1,444,413 Total revenue $ 1,403,853 $ 31,659 $ 16,820 $ 3,336 $ 1,455,668 ______________________________(1)Represents third-party property management, developer fees and miscellaneous income and other ancillary items which are not allocated to a reportable segment. 15 (2)Amounts include revenue streams related to leasing activities that are not considered components of a lease, and revenue streams not related to leasing activities including, but not limited to, application fees, renters insurance fees and vendor revenue sharing.(3)Represents residential and commercial rental and other lease income, as discussed above, under Leases. Due to the nature and timing of the Company’s identified revenue streams, there were no material amounts of outstanding or unsatisfied performance obligations as of June 30, 2026. Uncollectible Lease Revenue Reserves The Company recorded an aggregate offset to income for uncollectible lease revenue, net of amounts received from government rent relief programs, for its residential and commercial portfolios of $10,853,000 and $11,806,000 for the three months ended June 30, 2026 and 2025, respectively, and $21,496,000 and $23,880,000 for the six months ended June 30, 2026 and 2025, respectively. Recently Issued and Adopted Accounting Standards In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires the disaggregation for certain expenses presented on the face of an entity’s income statement in the entity's disclosures. Additionally, it requires the disclosure of selling expenses and descriptions of amounts not separately disaggregated. The new standard will be effective for annual reporting periods beginning January 1, 2027, and interim reporting periods beginning January 1, 2028. The Company is assessing the standard and does not expect it to have a material effect on the Company’s consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software, which updates the accounting for software implementation and development, specifically with respect to cost capitalization. The amendments replace the former model which considered prescriptive and sequential software development stages with an approach that is focused on management authorization and probability that the project will be completed and used for its intended purpose. The new standard will be effective for annual reporting periods beginning January 1, 2027, and interim reporting periods within those annual periods. The Company is assessing the standard and does not expect it to have a material effect on the Company's financial position or results of operations. 2. Interest Capitalized The Company capitalizes interest during the development and redevelopment of real estate assets. Capitalized interest associated with the Company's development and redevelopment activities totaled $15,930,000 and $11,904,000 for the three months ended June 30, 2026 and 2025, respectively, and $30,487,000 and $22,383,000 for the six months ended June 30, 2026 and 2025, respectively. 16 3. Debt The Company's debt, which consists of unsecured notes, the variable rate term loan (the Term Loan ), mortgage notes payable, the Credit Facility and Commercial Paper, each as defined below, as of June 30, 2026 and December 31, 2025 is summarized below. The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of June 30, 2026 and December 31, 2025, as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, Real Estate Disposition Activities ). The weighted average interest rates in the following table for secured and unsecured debt include financing costs, including debt issuance costs as well as credit enhancement and trustees' fees, the impact of interest rate hedges and mark-to-market adjustments. June 30, 2026 December 31, 2025 Fixed rate unsecured debt (1) $ 7,450,000 3.6% $ 7,925,000 3.6% Fixed rate mortgage notes payable—conventional and tax-exempt 332,049 3.9% 332,602 3.9% Variable rate mortgage notes payable—conventional and tax-exempt 380,950 4.3% 390,550 4.0% Total mortgage notes payable and unsecured debt 8,162,999 3.7% 8,648,152 3.6% Credit Facility — —% — —% Commercial paper 916,100 4.0% 740,000 4.0% Total principal outstanding 9,079,099 3.7% 9,388,152 3.7% Less deferred financing costs and debt discount (2) (54,319) (59,600) Total $ 9,024,780 $ 9,328,552 _____________________________________(1)Includes the $550,000 Term Loan that has been swapped to an effective fixed rate of 4.44% using interest rate hedges. (2)Excludes deferred financing costs associated with the Credit Facility and Commercial Paper, which are included in Prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets. The Company has a $2,500,000,000 revolving variable rate unsecured credit facility with a syndicate of banks (the Credit Facility ) which matures in April 2030. The interest rate that would be applicable to borrowings under the Credit Facility was 4.39% at June 30, 2026 and was composed of (i) the Secured Overnight Financing Rate ( SOFR ), applicable to the period of borrowing for a particular draw of funds from the Credit Facility (e.g., one month to maturity, three months to maturity, etc.), plus (ii) the current borrowing spread to SOFR of 0.705% per annum, assuming a daily SOFR borrowing rate. The borrowing spread to SOFR can vary from SOFR plus 0.65% to SOFR plus 1.40% based upon the rating of the Company's unsecured senior notes. There is also an annual facility commitment fee of 0.12% of the borrowing capacity under the Credit Facility, which can vary from 0.10% to 0.30% based upon the rating of the Company's unsecured senior notes. The Credit Facility contains a sustainability-linked pricing component which provides for interest rate margin and commitment fee reductions or increases related to certain environmental sustainability targets, specifically greenhouse gas emission reductions, with the adjustment determined annually. The annual determination under the sustainability-linked pricing component occurred in July 2025, maintaining reductions of approximately 0.02% to the interest rate margin and 0.005% to the commitment fee due to the Company's achievement of sustainability targets. The Company has an unsecured commercial paper note program (the “Commercial Paper Program”) with a maximum amount of commercial paper notes that can be outstanding at any one time not to exceed $1,000,000,000. Under the terms of the Commercial Paper Program, the Company may issue unsecured commercial paper notes with maturities of less than one year. The Commercial Paper Program is backstopped by the Company's commitment to maintain available borrowing capacity under its Credit Facility in an amount equal to actual borrowings under the Commercial Paper Program. 17 The availability under the Company's Credit Facility as of June 30, 2026 and December 31, 2025 was as follows (dollars in thousands): June 30, 2026 December 31, 2025 Credit Facility commitment $ 2,500,000 $ 2,500,000 Credit Facility outstanding — — Commercial paper outstanding (916,100) (740,000) Letters of credit outstanding (1) (864) (864) Total Credit Facility available $ 1,583,036 $ 1,759,136 _____________________________________(1)In addition, the Company had $60,627 and $52,584 outstanding in additional letters of credit unrelated to the Credit Facility as of June 30, 2026 and December 31, 2025, respectively. In May 2026, the Company repaid $475,000,000 of its 2.95% unsecured notes at par upon maturity. In the aggregate, secured notes payable mature at various dates from March 2027 through July 2066, and are secured by certain apartment communities with a net carrying value of $1,190,937,000, excluding communities classified as held for sale, if any, as of June 30, 2026. Scheduled payments and maturities of secured notes payable and unsecured debt outstanding at June 30, 2026 were as follows (dollars in thousands): Year Secured notes principal payments and maturities Unsecured debt maturities Stated interest rate of unsecured debt 2026 1,658 300,000 2.90% 2027 248,859 400,000 3.35% 2028 13,902 450,000 3.20% 400,000 1.90% 2029 126,262 450,000 3.30% 550,000 SOFR + 0.78% 2030 3,300 700,000 2.30% 400,000 4.35% 2031 3,500 600,000 2.45% 2032 4,000 700,000 2.05% 2033 5,000 350,000 5.00% 400,000 5.30% 2034 10,900 400,000 5.35% 2035 13,400 400,000 5.00% Thereafter 282,218 350,000 3.90% 300,000 4.15% 300,000 4.35% $ 712,999 $ 7,450,000 The Company was in compliance at June 30, 2026 with customary covenants under the Credit Facility, the Term Loan and the indentures under which the unsecured notes were issued. 18 4. Equity As of June 30, 2026 and December 31, 2025, the Company's charter had authorized for issuance a total of 280,000,000 shares of common stock and 50,000,000 shares of preferred stock. During the six months ended June 30, 2026, the Company: i.issued 2,444 shares of common stock in connection with stock options exercised;ii.issued 2,987 shares of common stock through the Company's dividend reinvestment plan;iii.issued 234,445 shares of common stock in connection with restricted stock grants and the conversion of performance awards to shares of common stock;iv.issued 10,355 shares of common stock through the Employee Stock Purchase Plan;v.issued 2,760,000 shares of common stock through the settlement of equity forward contracts;vi.withheld 83,467 shares of common stock to satisfy employees' tax withholding and other liabilities;vii.canceled 1,518 shares of restricted common stock upon forfeiture; andviii.repurchased 1,130,336 shares of common stock through the 2025 Stock Repurchase Program and 2026 Stock Repurchase Program, discussed below. Deferred compensation related to the Company's stock option, performance award and restricted stock grants does not impact the Company's Condensed Consolidated Financial Statements until recognized as compensation cost. The Company has a continuous equity program (the CEP ) under which the Company may sell (and/or enter into forward sale agreements for the sale of) up to $1,000,000,000 of its common stock from time to time. During the three and six months ended June 30, 2026 and 2025, the Company had no sales under the CEP. In connection with the pending Merger, the CEP was suspended as of the date of the Merger Agreement. In addition to the CEP, during the year ended December 31, 2024, the Company completed an underwritten public offering pursuant to which it entered into forward contracts to sell 3,680,000 shares of common stock at a discount to the closing price of $226.52 per share for net proceeds of $808,606,000 based on the initial forward price. During the three months ended June 30, 2026, the Company partially settled the outstanding forward contracts, issuing 2,760,000 shares of common stock at $220.08 per share for proceeds of $607,433,000. See Note 12, Subsequent Events, for further discussion of equity activity subsequent to June 30, 2026. In February 2026, the Company terminated its then-existing stock repurchase program (the 2025 Stock Repurchase Program ) and adopted a new stock repurchase program under which the Company may acquire shares of its common stock in open market or negotiated transactions up to an aggregate purchase price of $1,000,000,000 (the 2026 Stock Repurchase Program ). Purchases of common stock under the 2026 Stock Repurchase Program may occur from time to time at the Company’s discretion. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities. The 2026 Stock Repurchase Program does not have an expiration date and may be suspended or terminated at any time without prior notice. During the six months ended June 30, 2026, the Company repurchased 1,130,336 shares of common stock at an average price of $175.59 per share, including fees, for a total of $198,480,000 under the 2025 Stock Repurchase Program and the 2026 Stock Repurchase Program. In connection with the pending Merger, the 2026 Stock Repurchase Program was suspended as of the date of the Merger Agreement. 5. Investments Structured Investment Program The Company operates a Structured Investment Program (the SIP ), an investment platform through which the Company provides mezzanine loans or preferred equity to third-party multifamily developers. During the three months ended June 30, 19 2026, the Company entered into one new SIP commitment, agreeing to provide an aggregate investment of up to $15,000,000 in a multifamily development project in Metro NY/NJ. During the six months ended June 30, 2026, the Company received full repayment of $17,580,000 which includes principal and interest for one mezzanine loan. As of June 30, 2026, the Company had nine commitments to fund up to $241,785,000 in the aggregate with a weighted average rate of return of 11.8% and a weighted average final maturity date of November 2028. As of June 30, 2026, the Company had funded $237,774,000 of these commitments and recognized interest income, exclusive of expected credit losses, of $7,806,000 and $6,689,000 for the three months ended June 30, 2026 and 2025, respectively, and $15,022,000 and $12,820,000 for the six months ended June 30, 2026 and 2025, respectively, from the SIP. Interest income and any change in the expected credit loss are included as a component of Structured Investment Program interest income on the accompanying Condensed Consolidated Statements of Operations. The Company evaluates each SIP commitment to determine the classification as a loan or an investment in a real estate development project. As of June 30, 2026, all of the SIP commitments are classified as loans. The Company includes amounts outstanding under the SIP as a component of prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets. The Company evaluates the credit risk for each commitment on an ongoing basis, estimating the reserve for credit losses using relevant available information from internal and external sources. Market-based historical credit loss data provides the basis for the estimation of expected credit losses, with adjustments, if necessary, for differences in current commitment-specific risk characteristics, such as the amount of equity capital provided by a borrower, amount of senior debt secured by the project, nature of the real estate being developed or other factors. Unconsolidated Investments As of June 30, 2026, the Company had investments in four unconsolidated entities with real estate holdings, with ownership interests ranging from 20.0% to 28.6%, coupled with other unconsolidated investments including third-party property technology and sustainability focused companies and investment management funds. The Arts District joint venture, in which the Company holds a 25% ownership interest, owns one apartment community that is subject to a mortgage loan with an outstanding balance of $162,911,000 as of June 30, 2026. The Company has provided the lender a partial payment guarantee for 25% of the loan's maximum borrowing capacity. Any amounts payable under the 25% loan guarantee by the Company are obligations of the joint venture partners in proportion to their ownership interest, and in the event the Company is obligated to perform under its loan guarantee, its joint venture partner is obligated to reimburse the Company for 75% of amounts paid. The Company accounts for its unconsolidated investments under the equity method of accounting, net asset value or the measurement alternative with the carrying amount of the investment adjusted to fair value when there is an observable transaction for the same or similar investment of the same issuer indicating a change in fair value. The significant accounting policies of the unconsolidated investments are consistent with those of the Company in all material respects. Certain of these investments are subject to various buy‑sell provisions or other rights which are customary in real estate joint venture agreements. The Company and its partners in these entities may initiate these provisions to either sell the Company's interest or acquire the interest from the Company's joint venture partner. Expensed Transaction, Development and Other Pursuit Costs The Company capitalizes costs associated with its development activities to the basis of land held when future development is probable, or if the Company has either not yet acquired the land or if the project is subject to a leasehold interest, the costs are capitalized as deferred development costs ( Development Rights ). Future development of these Development Rights is dependent upon various factors, including zoning and regulatory approval, rental market conditions, construction costs and the availability of capital. Costs incurred for pursuits for which future development is not yet considered probable are expensed as incurred. If the Company determines a Development Right is no longer probable, the Company recognizes any necessary expense to write down its basis. The Company assesses its portfolio of land held for development and land held for investment for impairment if the intent of the Company changes with respect to either the development of, or the expected holding period for, the land. The Company incurred expense of $7,609,000 and $2,493,000 for the three months ended June 30, 2026 and 2025, 20 respectively, and $11,025,000 and $7,237,000 for the six months ended June 30, 2026 and 2025, respectively, for expensed development and other pursuit costs, net of recoveries, which include development pursuits that were not yet probable of future development at the time incurred, or for pursuits that we determined were no longer probable of being developed. The amount for the three and six months ended June 30, 2026 includes a write-off of $4,545,000 for one development opportunity that the Company determined was no longer probable. The amount for the six months ended June 30, 2025 includes a write-off of $3,668,000 for one development opportunity that the Company determined was no longer probable. In addition, the Company incurred costs of $12,367,000 during the three and six months ended June 30, 2026 related to the proposed Merger with Equity Residential. See Note 1, Organization, Basis of Presentation and Significant Accounting Policies, for more information on the Merger. These costs are included in expensed transaction, development and other pursuit costs, net of recoveries on the accompanying Condensed Consolidated Statements of Operations. These costs can vary greatly, and the costs incurred in any given period may be significantly different in future periods. Long-Lived Assets Casualty Loss For the six months ended June 30, 2026, the Company recognized $4,619,000 of expense from property damage at certain of the Company's communities, reported as casualty and impairment loss on the accompanying Condensed Consolidated Statements of Operations. For the three and six months ended June 30, 2025, the Company recognized $858,000 for the property damage to one of the Company's communities, reported as casualty and impairment loss on the accompanying Condensed Consolidated Statements of Operations. The expense for the six months ended June 30, 2026 relates to damage from a water pipe break at a community in New Jersey and damage at communities throughout the portfolio from winter storms. The expense for the three and six months ended June 30, 2025 relates to damage from a water pipe break at a community in Massachusetts. 6. Real Estate Disposition Activities The following real estate sales occurred during the six months ended June 30, 2026 (dollars in thousands): Community name Location Period of sale Apartment homes Gross sales price Gain on disposition (1) Commercial square feet Avalon Sunset Towers San Francisco, CA Q1 2026 243 $ 105,000 $ 85,567 — Avalon White Plains White Plains, NY Q1 2026 407 166,000 84,408 — Avalon The Albemarle Washington D.C. Q1 2026 234 69,750 9,713 1,000 Total 884 $ 340,750 $ 179,688 1,000 _________________________________(1) Gain on disposition was reported in gain on sale of communities on the accompanying Condensed Consolidated Statements of Operations. At June 30, 2026, the Company had one real estate asset that qualified as held for sale. 7. Commitments and Contingencies Legal Contingencies The Company recognizes a loss associated with contingent legal matters when the loss is probable and estimable. In 2022 and early 2023, the Company was named as a defendant in cases brought by private litigants alleging antitrust violations by RealPage, Inc. and owners and/or operators of multifamily housing which utilize revenue management systems provided by RealPage, Inc. The Company engaged with the plaintiffs' counsel to explain why it believed that these cases were without merit as they pertained to the Company. Following these discussions, the plaintiffs filed a notice of voluntary dismissal in July 2023, which resulted in the Company being dismissed without prejudice from these cases. Subsequently, on November 1, 2023, the District of Columbia filed a lawsuit in the Superior Court of the District of Columbia against RealPage, Inc. and a number of 21 owners and/or operators of multifamily housing in the District of Columbia, including the Company, alleging that the defendants violated the District of Columbia Antitrust Act by unlawfully agreeing to use RealPage, Inc. revenue management systems and sharing sensitive data (the “D.C. Antitrust Litigation”). The court has denied the Company's motions to dismiss and for judgment on the pleadings. See Note 12, Subsequent Events, for further discussion of the D.C. Antitrust Litigation. On January 15, 2025, the Office of the Attorney General of the State of Maryland filed a lawsuit similar to the D.C. Antitrust Litigation in the Circuit Court for Prince George’s County, Maryland in which RealPage, Inc. and a number of owners and/or operators of multifamily properties in Maryland, including the Company, have been named and alleged to have violated state antitrust law (the “Maryland Antitrust Litigation”). On February 28, 2025, the Company filed a motion to dismiss. Maryland filed an amended complaint on June 5, 2026, and, on June 29, 2026, the court denied as moot the Company’s motion to dismiss the original complaint due to Maryland’s amended complaint. On April 23, 2025, the Attorney General of the State of New Jersey and the New Jersey Division of Consumer Affairs filed a lawsuit similar to the D.C. Antitrust Litigation and the Maryland Antitrust Litigation in the U.S. District Court for the District of New Jersey. The lawsuit alleges that RealPage, Inc. and a number of owners and/or operators of multifamily properties in New Jersey, including the Company, violated federal and state antitrust laws and the state consumer fraud law (the “New Jersey Antitrust Litigation”) by unlawfully agreeing to use RealPage, Inc. revenue management systems and other related actions. On July 29, 2025, the Company filed a motion to dismiss. On March 31, 2026, the court granted without prejudice the Company’s motion with respect to the federal and state antitrust claims but denied it with respect to the state consumer fraud claim. On April 14, 2026, the Company filed a motion to reconsider the court’s ruling on the Company’s motion to dismiss the New Jersey Antitrust Litigation insofar as it did not dismiss the remaining state consumer fraud claim. While the Company intends to vigorously defend against the D.C. Antitrust Litigation, the Maryland Antitrust Litigation and the New Jersey Antitrust Litigation, the Company is unable to predict the outcome or estimate the amount of loss, if any, that may result from the lawsuits. The Company is involved in various other claims and/or administrative proceedings that arise in the ordinary course of its business. While no assurances can be given, the Company does not currently believe that any of these other outstanding litigation matters, individually or in the aggregate, will have a material adverse effect on its financial condition or results of operations. Lease Obligations The Company owns seven apartment communities, two commercial properties and one development community located on land subject to ground leases expiring between July 2046 and May 2123. The Company has purchase options for all ground leases expiring prior to 2062. The ground leases for six of the seven apartment communities, the two commercial properties and one development community are operating leases, with rental expense recognized on a straight-line basis over the lease term. In addition, the Company is party to 15 leases for its corporate and regional offices with varying terms through December 2033, all of which are operating leases. During the six months ended June 30, 2026, the Company did not enter into any new ground leases. The ground lease for the development community includes a completion guaranty that obligates the Company to complete construction of the community and certain off-site infrastructure improvements prior to May 2030. The Company expects to complete construction in Q1 2029 for an estimated total capital cost of $302,000,000. As of June 30, 2026 and December 31, 2025, the Company had total operating lease assets of $116,712,000 and $119,888,000, respectively, and lease obligations of $142,601,000 and $145,319,000, respectively, reported as components of right of use lease assets and lease liabilities, respectively, on the accompanying Condensed Consolidated Balance Sheets. The Company incurred costs of $3,842,000 and $3,836,000 for the three months ended June 30, 2026 and 2025, respectively, and $7,766,000 and $7,771,000 for the six months ended June 30, 2026 and 2025, respectively, related to operating leases. 22 The Company has one apartment community located on land subject to a ground lease and four leases for portions of parking garages adjacent to apartment communities that are finance leases. As of June 30, 2026 and December 31, 2025, the Company had total finance lease assets of $27,429,000 and $27,649,000, respectively, and total finance lease obligations of $19,843,000 and $19,881,000, respectively, reported as components of right of use lease assets and lease liabilities on the accompanying Condensed Consolidated Balance Sheets. 8. Segment Reporting The Company's reportable operating segments include Same Store, Other Stabilized and Development/Redevelopment. Annually as of January 1, the Company determines which of its communities fall into each of these categories and generally maintains that classification throughout the year for the purpose of reporting segment operations, unless disposition or redevelopment plans regarding a community change. In addition, the Company owns land for future development and has other corporate assets that are not allocated to an operating segment. The Company's segment disclosures present the measure(s) used by the Chief Operating Decision Maker ( CODM ) for assessing each segment's performance. The Company's CODM is comprised of several members of its executive management team, including its Chief Executive Officer and President, Chief Financial Officer, Chief Investment Officer, Chief Operating Officer, and Executive Vice President- Portfolio and Asset Management. The CODM uses net operating income ( NOI ) as the primary financial measure for Same Store communities and Other Stabilized communities. NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excluding corporate-level income (including management, development and other fees), property management and other indirect operating expenses, net of corporate income, expensed transaction, development and other pursuit costs, net of recoveries, interest expense, net, loss on extinguishment of debt, net, general and administrative expense, income from unconsolidated investments, Structured Investment Program interest income, depreciation expense, income tax expense (benefit), casualty and impairment loss, gain on sale of communities, other real estate activity and net operating income from real estate assets sold or held for sale. The CODM evaluates the Company's financial performance on a consolidated residential and commercial basis. The commercial results attributable to the non-apartment components of the Company's mixed-use communities and other nonresidential operations represent 1.4% of total NOI for both the three months ended June 30, 2026 and 2025 and 1.5% and 1.7% of total NOI for the six months ended June 30, 2026 and 2025, respectively. Although the Company considers NOI a useful measure of a community's or communities' operating performance, NOI should not be considered an alternative to net income or net cash flow from operating activities, as determined in accordance with GAAP. NOI excludes a number of income and expense categories as detailed in the reconciliation of NOI to net income and consistent with how the Company's CODM evaluates total NOI. A reconciliation of NOI to net income for the three and six months ended June 30, 2026 and 2025 is as follows (dollars in thousands): 23 For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Net income $ 156,893 $ 269,855 $ 485,183 $ 506,452 Property management and other indirect operating expenses, net of corporate income 38,483 38,153 76,583 74,254 Expensed transaction, development and other pursuit costs, net of recoveries 19,976 2,493 23,392 7,237 Interest expense, net 70,070 64,801 141,559 124,665 General and administrative expense 27,137 22,997 49,214 42,777 (Income) loss from unconsolidated investments (7,647) 1,052 (1,120) 2,051 Structured Investment Program interest income (7,704) (6,937) (15,185) (13,050) Depreciation expense 232,975 231,730 466,079 449,618 Income tax expense (benefit) 70 (531) (224) (647) Casualty and impairment loss — 858 4,619 858 Loss (gain) on sale of communities, net 338 (99,457) (179,574) (155,926) Other real estate activity (223) (3,637) (307) (3,792) Net operating income from real estate assets sold or held for sale (1,124) (15,631) (4,516) (33,379) Net operating income $ 529,244 $ 505,746 $ 1,045,703 $ 1,001,118 The following is a summary of NOI from real estate assets sold or held for sale for the periods presented (dollars in thousands): For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Rental income from real estate assets sold or held for sale $ 1,570 $ 23,665 $ 7,525 $ 50,407 Operating expenses from real estate assets sold or held for sale (446) (8,034) (3,009) (17,028) Net operating income from real estate assets sold or held for sale $ 1,124 $ 15,631 $ 4,516 $ 33,379 The primary performance measure for communities under development or redevelopment depends on the stage of completion. While under development, management monitors actual construction costs against budgeted costs as well as lease-up pace and rent levels compared to budget. The following table details the Company's segment information as of the dates specified (dollars in thousands). The segments are classified based on the individual community's status at January 1, 2026. Segment information for the three and six months ended June 30, 2026 and 2025 has been adjusted to exclude the real estate assets that were sold from January 1, 2025 through June 30, 2026, or otherwise qualify as held for sale as of June 30, 2026, as described in Note 6, Real Estate Disposition Activities. 24 For the three months ended June 30, 2026 Same Store Other Stabilized Development / Redevelopment Total (1) (2) Total Revenue $ 716,308 $ 33,897 $ 24,211 $ 774,416 Same Store Operating Expense Property Taxes (82,021) (82,021) Payroll (40,582) (40,582) Repairs & Maintenance (40,975) (40,975) Utilities (27,499) (27,499) Office Operations (15,031) (15,031) Insurance (11,343) (11,343) Marketing (5,002) (5,002) Same Store Operating Expense (222,453) — — (222,453) Non-Same Store Operating Expense — (12,523) (10,196) (22,719) Total Expenses (222,453) (12,523) (10,196) (245,172) Total NOI $ 493,855 $ 21,374 $ 14,015 $ 529,244 Gross Real Estate $ 25,229,174 $ 1,726,436 $ 2,879,771 $ 29,835,381 For the three months ended June 30, 2025 Same Store Other Stabilized Development / Redevelopment Total (1) (2) Total Revenue $ 704,387 $ 21,649 $ 8,900 $ 734,936 Same Store Operating Expense Property Taxes (79,262) (79,262) Payroll (40,112) (40,112) Repairs & Maintenance (39,198) (39,198) Utilities (25,642) (25,642) Office Operations (16,412) (16,412) Insurance (10,513) (10,513) Marketing (4,945) (4,945) Same Store Operating Expense (216,084) — — (216,084) Non-Same Store Operating Expense — (9,098) (4,008) (13,106) Total Expenses (216,084) (9,098) (4,008) (229,190) Total NOI $ 488,303 $ 12,551 $ 4,892 $ 505,746 Gross Real Estate $ 24,896,266 $ 1,364,932 $ 1,658,532 $ 27,919,730 25 For the six months ended June 30, 2026 Same Store Other Stabilized Development / Redevelopment Total (1) (2) Total Revenue $ 1,426,169 $ 67,764 $ 42,974 $ 1,536,907 Same Store Operating Expense Property Taxes (163,846) — — (163,846) Payroll (80,797) — — (80,797) Repairs & Maintenance (80,102) — — (80,102) Utilities (61,096) — — (61,096) Office Operations (31,224) — — (31,224) Insurance (21,778) — — (21,778) Marketing (8,625) — — (8,625) Same Store Operating Expense (447,468) — — (447,468) Non-Same Store Operating Expense — (25,366) (18,370) (43,736) Total Expenses (447,468) (25,366) (18,370) (491,204) Total NOI $ 978,701 $ 42,398 $ 24,604 $ 1,045,703 Gross Real Estate $ 25,229,174 $ 1,726,436 $ 2,879,771 $ 29,835,381 For the six months ended June 30, 2025 Same Store Other Stabilized Development / Redevelopment Total (1) (2) Total Revenue $ 1,403,853 $ 31,659 $ 16,820 $ 1,452,332 Same Store Operating Expense Property Taxes (156,418) — — (156,418) Payroll (79,859) — — (79,859) Repairs & Maintenance (77,051) — — (77,051) Utilities (55,325) — — (55,325) Office Operations (32,350) — — (32,350) Insurance (21,033) — — (21,033) Marketing (8,687) — — (8,687) Same Store Operating Expense (430,723) — — (430,723) Non-Same Store Operating Expense — (13,274) (7,217) (20,491) Total Expenses (430,723) (13,274) (7,217) (451,214) Total NOI $ 973,130 $ 18,385 $ 9,603 $ 1,001,118 Gross Real Estate $ 24,896,266 $ 1,364,932 $ 1,658,532 $ 27,919,730 __________________________________(1)Does not include non-allocated revenue. Non-allocated revenue represents third-party property management, developer fees and miscellaneous income and other ancillary items which are not allocated to a reportable segment. Non-allocated revenue is $1,782 and $1,594 for the three months ended June 30, 2026 and 2025, respectively, and $3,615 and $3,336 for the six months ended June 30, 2026 and 2025, respectively. 26 (2)Does not include non-allocated gross real estate and land held for development. Non-allocated gross real estate is $112,539 and $117,894 as of June 30, 2026 and 2025, respectively. Land held for development is $101,508 and $101,066 as of June 30, 2026 and 2025, respectively. 9. Stock-Based Compensation Plans On May 20, 2026, the stockholders of the Company approved the 2026 Equity Incentive Plan (the 2026 Plan ), which replaced the Company's Second Amended and Restated 2009 Equity Incentive Plan (the 2009 Plan ). The 2026 Plan includes an authorization to issue up to 4,000,000 shares of the Company's common stock, par value $0.01 per share and permits the Company to grant stock options, performance awards, restricted stock units, stock appreciation rights and restricted stock to eligible employees, directors, and other service providers. Shares issued under the 2009 Plan from March 15, 2026 through May 20, 2026 were counted towards the 2026 Plan authorization, which reduced the number of shares available for future grants to 3,999,180. The 2026 Plan will expire on May 20, 2036. Effective as of the close of business on May 20, 2026, no awards may be granted under the 2009 Plan. The 2009 Plan provided for the same types of equity awards as the 2026 Plan, and would have expired by its terms on May 15, 2027. Outstanding awards previously granted under the 2009 Plan will not be affected by termination of the 2009 Plan, the terms of which shall continue to govern such previously granted awards. In addition to the 3,999,180 shares authorized for issuance under the 2026 Plan as described above, any awards that were outstanding under the 2009 Plan on May 20, 2026 that are subsequently forfeited, canceled, surrendered or terminated (other than by exercise) will become available for awards under the 2026 Plan. Details of the outstanding awards and activity under the 2026 Plan and 2009 Plan for the six months ended June 30, 2026 are presented below. Stock Options: Options Weighted average exerciseprice per option Options Outstanding at December 31, 2025 271,576 $ 183.28 Granted (1) 23,316 179.67 Exercised (2,444) 180.32 Forfeited — — Expired — — Options Outstanding at June 30, 2026 292,448 $ 183.01 Options Exercisable at June 30, 2026 258,599 $ 182.55 __________________________________(1)All options are from recipient elections to receive a portion of earned restricted stock awards in the form of stock options. Performance Awards: Performance awards Weighted average grant date fair value per award Outstanding at December 31, 2025 256,377 $ 199.94 Granted 99,434 173.73 Change in awards based on performance (1) 31,695 198.68 Converted to shares of common stock (123,221) 198.41 Forfeited (1,580) 201.43 Outstanding at June 30, 2026 262,705 $ 190.57 __________________________________(1)Represents the change in the number of performance awards earned based on performance achievement. 27 The Company grants performance awards based on (i) the total shareholder return metrics for the Company’s common stock and (ii) financial metrics related to operating performance and leverage metrics of the Company. The number of performance awards granted that are based on total shareholder return metrics and financial metrics are as follows: 2026 Total shareholder return metrics 54,687 Financial metrics 44,747 Total granted 99,434 The Company used a Monte Carlo model to assess the compensation cost associated with the portion of the performance awards granted for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows: 2026 Dividend yield 4.0% Estimated volatility over the life of the plan (1) 17.2% - 21.7% Risk free rate 3.39% - 3.43% Estimated performance award value based on total shareholder return measure $168.69 __________________________________(1)Estimated volatility over the life of the plan is using 50% historical volatility and 50% implied volatility. For the portion of the performance awards granted in 2026 for which achievement will be determined by using financial metrics, the compensation cost was based on an average grant date value of $179.67. Restricted Stock: Restricted stock shares Weighted average grant date fair value per share Outstanding at December 31, 2025 167,179 $ 195.76 Granted 111,224 179.73 Vested (88,553) 189.43 Forfeited (1,518) 192.57 Outstanding at June 30, 2026 188,332 $ 189.29 Total employee stock-based compensation cost recognized in income was $13,816,000 and $14,188,000 for the six months ended June 30, 2026 and 2025, respectively, and total capitalized stock-based compensation cost was $5,884,000 and $6,630,000 for the six months ended June 30, 2026 and 2025, respectively. At June 30, 2026, total unrecognized compensation cost was $46,174,000 for unvested restricted stock, stock options and performance awards, which is expected to be recognized over a weighted average period of 2.2 years. The Company reverses any previously recognized compensation cost for forfeitures as they occur. 28 10. Related Party Arrangements Unconsolidated Entities The Company manages unconsolidated real estate entities and provides other real estate related services to third parties, for which it receives asset management, property management, construction, development and redevelopment fee revenue. From these entities, the Company earned fees of $1,782,000 and $1,594,000 for the three months ended June 30, 2026 and 2025, respectively, and $3,615,000 and $3,336,000 for the six months ended June 30, 2026 and 2025. In addition, the Company had outstanding receivables associated with its property and construction management roles of $915,000 and $1,395,000 as of June 30, 2026 and December 31, 2025, respectively. Director Compensation The Company recorded non-employee director compensation expense relating to restricted stock grants and deferred stock units in the amount of $692,000 and $604,000 for the three months ended June 30, 2026 and 2025, respectively, and $1,383,000 and $1,192,000 for the six months ended June 30, 2026 and 2025, respectively, as a component of general and administrative expense on the accompanying Condensed Consolidated Statements of Operations. Deferred compensation relating to these restricted stock grants and deferred stock units to non-employee directors was $2,017,000 and $910,000 on June 30, 2026 and December 31, 2025, respectively, reported as a component of prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets. 11. Fair Value Financial Instruments Carried at Fair Value Derivative Financial Instruments Hedging Derivatives are carried at fair value in the Company's financial statements. The Company minimizes its credit risk on these transactions by dealing with major, creditworthy financial institutions and monitors the credit ratings of counterparties and the exposure of the Company to any single entity. The Company believes the likelihood of realizing losses from counterparty nonperformance is remote. The Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, such as interest rate, term to maturity and volatility. The Hedging Derivatives credit valuation adjustments associated with its derivatives use Level 3 inputs, such as estimates of current credit spreads, which the Company concluded are not significant. As a result, the Company determined that its derivative valuations are classified in Level 2 of the fair value hierarchy. The following table summarizes the consolidated derivative positions at June 30, 2026 (dollars in thousands): Non-designated Hedges Cash Flow Hedges Interest Rate Caps Interest Rate Swaps Notional balance $ 357,289 $ 700,000 Weighted average interest rate (1) 4.3% N/A Weighted average capped/swapped interest rate 6.7% 3.6% Earliest maturity date July 2026 January 2027 Latest maturity date May 2029 April 2029 ____________________________________(1)For debt hedged by interest rate caps, represents the weighted average interest rate on the hedged debt prior to any impact of the associated interest rate caps. 29 During the six months ended June 30, 2026, the Company entered into $150,000,000 of forward starting interest rate swap agreements designated as cash flow hedges of interest rate variability on future debt issuance activity through December 31, 2026. The Company expects to cash settle the swaps and either pay or receive cash for the then current fair value. Assuming that the Company issues the debt as expected, the hedging impact from these positions will then be recognized over the life of the issued debt as a yield adjustment. The Company had certain derivatives not designated as hedges during the three and six months ended June 30, 2026 and 2025, for which fair value changes during each of the respective periods were not material. The Company anticipates reclassifying approximately $5,189,000 of net hedging gains from accumulated other comprehensive income into earnings within the next 12 months as an offset to the hedged item during this period. Financial Instruments Not Carried at Fair Value Cash, Cash Equivalents and Restricted Cash Cash, cash equivalent and restricted cash balances are held with various financial institutions within accounts designed to preserve principal. The Company monitors credit ratings of these financial institutions and the concentration of cash, cash equivalents and restricted cash balances with any one financial institution and believes the likelihood of realizing material losses related to cash, cash equivalent and restricted cash balances is remote. Cash, cash equivalents and restricted cash are carried at their face amounts, which reasonably approximate their fair values and are Level 1 within the fair value hierarchy. Other Financial Instruments Other financial instruments consist of (i) rents, (ii) other receivables, including notes receivable, (iii) prepaid expenses, (iv) accounts and construction payable and (v) accrued expenses and other liabilities. These assets and liabilities are carried at their face amounts, which reasonably approximate their fair values. The Company determined that its notes receivable approximate fair value because interest rates, yields and other terms are consistent with interest rates, yields and other terms currently available for similar instruments and are considered to be a Level 2 price within the fair value hierarchy. Equity Securities The Company has direct equity investments in third-party property technology companies. These investments are accounted for using the measurement alternative and are valued at the market price of observable transactions. During the three months ended June 30, 2026 and 2025, the Company recognized unrealized gains of $170,000 and unrealized losses of $1,203,000, respectively, and unrealized losses of $6,080,000 and $2,445,000 during the six months ended June 30, 2026 and 2025, respectively, related to these investments, which was reported as a component of loss from unconsolidated investments on the accompanying Condensed Consolidated Statements of Operations. As of June 30, 2026, the Company had recorded cumulative fair value adjustments of $61,429,000 for net unrealized gains on equity securities. 30 Indebtedness The Company values its fixed rate unsecured debt using quoted market prices, a Level 1 price within the fair value hierarchy. The Company values its mortgage notes payable, the Term Loan and any outstanding amounts under the Credit Facility and Commercial Paper Program using a discounted cash flow analysis on the expected cash flows of each instrument. This analysis reflects the contractual terms of the instrument, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The process also considers credit valuation adjustments to appropriately reflect the Company's nonperformance risk. The Company has concluded that the value of its mortgage notes payable, Term Loan and any outstanding amounts under the Credit Facility and Commercial Paper Program are Level 2 prices as the majority of the inputs used to value its positions fall within Level 2 of the fair value hierarchy. Financial Instruments Measured/Disclosed at Fair Value on a Recurring Basis The following tables summarize the classification between the three levels of the fair value hierarchy of the Company's financial instruments measured or disclosed at fair value on a recurring basis (dollars in thousands): June 30, 2026 Description Total Fair Value Quoted Pricesin ActiveMarkets for Identical Assets(Level 1) SignificantOtherObservable Inputs (Level 2) SignificantUnobservable Inputs(Level 3) Assets Investments Notes receivable, net $ 293,662 $ — $ 293,662 $ — Non-designated hedges Interest rate caps 20 — 20 — Interest rate swaps - assets 9,419 — 9,419 — Total Assets $ 303,101 $ — $ 303,101 $ — Liabilities Indebtedness Fixed rate unsecured debt 6,482,606 6,482,606 — — Mortgage notes payable, Commercial Paper and Term Loan 2,136,623 — 2,136,623 — Total Liabilities $ 8,619,229 $ 6,482,606 $ 2,136,623 $ — 31 December 31, 2025 Description Total Fair Value Quoted Pricesin ActiveMarkets for Identical Asset(Level 1) SignificantOtherObservable Inputs (Level 2) SignificantUnobservable Inputs(Level 3) Assets Investments Notes receivable, net $ 259,051 $ — $ 259,051 $ — Total Assets $ 259,051 $ — $ 259,051 $ — Liabilities Interest rate swaps - liabilities $ 4,046 $ — $ 4,046 $ — Indebtedness Fixed rate unsecured debt 7,025,656 7,025,656 — — Mortgage notes payable, Commercial Paper and Term Loan 1,970,177 — 1,970,177 — Total Liabilities $ 8,999,879 $ 7,025,656 $ 1,974,223 $ — 12. Subsequent Events The Company has evaluated subsequent events through the date on which this Form 10-Q was filed, the date on which these financial statements were issued, and identified the items below for discussion. In July 2026, the Company had the following activity: •The Company sold eaves Tysons Corner, located in Vienna, VA, containing 217 apartment homes for $68,050,000. •The Company settled the remaining outstanding equity forward contracts entered into during 2024, issuing 920,000 shares of common stock at $219.52 per share for proceeds of $201,958,000. •On July 16, 2026, the Company and the District of Columbia both filed motions for summary judgment in the D.C. Antitrust Litigation. See Note 7, Commitments and Contingencies, for further discussion of the D.C. Antitrust Litigation. 32