EQUITY RESIDENTIAL

Equity Residential reported its second quarter 2026 financial results, with diluted EPS of $0.30 and Normalized FFO per share of $1.02. The company also provided an update on its pending all-stock merger of equals with AvalonBay Communities, Inc., which is expected to create a leading real estate company with a pro forma equity market capitalization of approximately $53 billion and over 180,000 rental apartments. Equity Residential raised the midpoint of its full-year 2026 guidance for same-store revenues and Net Operating Income, reflecting strong demand and market momentum, though it withdrew other financial guidance due to the merger.

Equity Residential and AvalonBay Communities announced the executive leadership team for their combined company, effective upon the closing of their merger of equals. Benjamin Schall will serve as President and Chief Executive Officer, with his compensation for fiscal year 2027 confirmed. The companies also announced other key executive appointments, including Michael Manelis as EVP & COO, Kevin O’Shea as EVP & CFO, and Scott Fenster as EVP, General Counsel & Corporate Secretary, along with their respective compensation packages. The merger is expected to close in the second half of 2026, creating a combined entity with a pro forma enterprise value of approximately $69 billion.

Equity Residential and AvalonBay Communities announced a definitive agreement to combine in an all-stock merger of equals. This transaction will create a leading real estate company with a pro forma equity market capitalization of approximately $52 billion and an enterprise value of approximately $69 billion, managing over 180,000 rental apartments. The merger is anticipated to generate $175 million in gross synergies and $125 million in net synergies. AvalonBay shareholders will receive 2.793 Equity Residential common shares for each share owned, resulting in AvalonBay shareholders owning approximately 51.2% of the combined entity. The combined company's board will have 14 members, with Stephen E. Sterrett as Chairman and Benjamin W. Schall as CEO, and is expected to deliver an initial annualized dividend of $2.81 per share. The transaction is projected to close in the second half of 2026, pending shareholder approvals.

Equity Residential (EQR) reported Q1 2026 net income of $93.1 million, a significant decrease from $264.8 million in Q1 2025. Basic EPS also fell to $0.24 from $0.68. Despite this, rental income increased by 2.5% to $779.8 million. The company repurchased $219.4 million in common shares and increased distributions per common share to $0.7025. The report combines financial statements for EQR and ERP Operating Limited Partnership, reflecting their UPREIT structure.

Equity Residential reported its first quarter 2026 results, with Normalized FFO per share increasing 4.2% year-over-year to $0.99. Same store Net Operating Income (NOI) grew by 1.4%, driven by strong performance in San Francisco and New York markets, and the company achieved its lowest resident turnover in history. The company also repurchased $219.4 million of its common shares and increased its annual dividend by 1.4% to $2.81 per share.

Equity Residential has entered into a settlement agreement to resolve a class action antitrust lawsuit. The company will pay an aggregate of $56.0 million into a settlement fund to address claims of alleged collusion with RealPage, Inc. and other multifamily housing owners to illegally fix and inflate rental prices. The agreement, signed on April 13, 2026, is pending preliminary and final approval by the United States District Court for the Middle District of Tennessee.