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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Avalon Somerville Station Somerville, NJ FIRST QUARTER 2025 FEBRUARY 27, 2025 INVESTOR RELATIONS UPDATE
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] IMPORTANT INFORMATION 2 See Appendix for information about forward-looking statements and definitions and reconciliations of non-GAAP financial measures and other terms. For the reasons described in the referenced forward-looking statements our historical results may not be indicative of future results. The projections for AvalonBay Communities, Inc. included in this presentation were originally included in its February 5, 2025, earnings release, or its February 6, 2025, earnings conference call, both of which are available under “Investor Relations” at www.avalonbay.com. These projections are provided for historical reference and have not been reviewed or updated for purposes of this presentation, and the inclusion of these projections in this presentation is not a reaffirmation of these projections or a confirmation with respect to the accuracy of the projections as of any date after the date of the earnings release or the date of the earnings conference call, as applicable. The projections were based on the expectations, forecasts, and assumptions on the date of the earnings release or the date of the earnings conference call, as applicable, which may not be realized and/or may have changed since that date and involve risks and uncertainties that might not be anticipated or could not be predicted accurately. These could cause these projections to be inaccurate as of any date after the date of the earnings release or the date of the earnings conference call, as applicable, and may also cause actual results to differ materially from those expressed or implied by the projections, as described in “Forward-Looking Statements” in the Appendix. AvalonBay does not undertake a duty to update any projections or other forward-looking statements contained in this presentation, including but not limited to its expected 2025 operating results and other financial and economic data forecasts. AvalonBay may, in its discretion, provide information in future public announcements regarding its outlook that may be of interest to the investors, analysts and other members of the financial and investment communities. The format and extent of future outlooks may be different from the format and extent of the information contained in this presentation. AvalonBay files annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (the “SEC”). Our SEC filings are available to the public free of charge from the SEC website at www.sec.gov and on our website at the address above. You should read this presentation in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024, and the Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports and documents we file with the SEC after the date of this presentation before you make any investment decisions involving AvalonBay and its securities. The date of this presentation is February 27, 2025.
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 2025 OUTLOOK HIGHLIGHTS 3 • Sector-leading projected Core FFO per share growth in 2025; over 200bps above the peer weighted average based on initial outlooks(1) • Substantial progress on strategic focus areas in 2024, positioned for continued outperformance in 2025 • Outlook for apartment fundamentals in 2025 remains favorable in AVB Established Regions • Executing on investment opportunities across multiple platforms; $1.6B of projected Development starts in 2025 • Balance sheet position provides capacity to pursue accretive external growth → 2024 Forward Equity Activity funding ≈ 50% of 2025 capital plan Source: Internal company reports. See Appendix for a definition of Projected Core FFO. (1) Includes the most recent publicly available full year 2025 guidance midpoints, as of February [26], 2025, for Projected Core FFO per share growth (or the equivalent metrics) for EQR, ESS, UDR, MAA, and CPT. Weighted average based on Enterprise Value as of December 31, 2024. 3 Avalon Towson Towson, MD
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] The Company provided the following Same Store Residential operating metrics, which are generally consistent with the Company’s expectations for these metrics when the Company published its initial outlook for full year 2025 Same Store Residential revenue growth on February 5, 2025: 1Q25 SAME STORE OPERATING UPDATE 4 4Q24 QTD 25 ECONOMIC OCCUPANCY 95.6% 95.9%(1) LIKE-TERM EFFECTIVE RENT CHANGE 1.1% 1.6%(2) Avalon Westminster Promenade Broomfield, COSource: Internal company reports. See Appendix for a definition of Economic Occupancy, Like-term Effective Rent Change, Same Store. (1) Represents January actuals and management’s projection for February as of February 26, 2025 (2) As of February 26, 2025
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 5 Will Add Photo Later Avalon Redmond Campus Redmond, WA 5 ABOUT AVALONBAY
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] LARGEST PUBLICLY-TRADED MULTIFAMILY REIT; S&P 500 COMPANY WITH STRONG SHAREHOLDER RETURNS 6 $39B TOTAL ENTERPRISE VALUE A3 | A- MOODY’S | S&P CREDIT RATINGS 306 COMMUNITIES 93,518 APARTMENT HOMES 10 U.S. REGIONS 73% SUBURBAN PORTFOLIO 11.9% TOTAL SHAREHOLDER RETURN SINCE IPO(1) 4.9% ANNUALIZED DIVIDEND GROWTH SINCE 2000 Source: Internal company reports. Data as of December 31, 2024. Largest publicly-traded multifamily REIT based on Total Enterprise Value. See Appendix for a definition and reconciliation of Total Enterprise Value, a discussion of the Company’s credit ratings, and an explanation of the Total Shareholder Return and Dividend Growth calculations. (1) IPO (initial public offering) for Avalon Properties completed November 18, 1993.
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 30-YEARS OF OUTSTANDING GROWTH AS INDUSTRY LEADER 7 1993 1998 2007 2011 2013 2017 2021 AVALON PROPERTIES IPO AVALON & BAY MERGER JOINS S&P 500 CENTRALIZED CUSTOMER CARE CENTER OPENS FIRST ESG REPORT ARCHSTONE ACQUISITION EXPANDS TO DENVER & SOUTHEAST FLORIDA EXPANDS TO CHARLOTTE, RALEIGH-DURHAM, DALLAS-FORT WORTH, & AUSTIN Source: Internal company reports.
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POSITIONED FOR CONTINUED OUTPERFORMANCE IN 2025 Strategic Focus Areas To Deliver Superior Growth INNOVATE AND TRANSFORM OPERATIONS Driving Incremental NOI OPTIMIZE P0RTFOLIO ALLOCATION AND PERFORMANCE Positioning for superior growth GROW BY LEVERAGING DEVELOPMENT CAPABILITIES Generating accretive external growth LEVERAGE GROWTH-ORIENTED BALANCE SHEET Ensuring continuous access to cost effective capital 1 2 3 4 Avalon Montville Pine Brook, NJ 8
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 9 INNOVATE AND TRANSFORM OPERATIONS DELIVERED $39M OF ANNUAL INCREMENTAL NOI THROUGH YEAR-END 2024 AND PROJECTING ANOTHER $9M IN 2025; ADVANCING TOWARD $80M TARGET 1 Align with customer expectations & reduce staff involvement • Fully digitally enabled self-guided touring • Application & lease signing • Renewals • Resident App • Parking KEY OPERATING INITIATIVES Create an efficient operating platform that delivers excellent service and NOI growth Leverage market scale & long-standing Customer Care Center capabilities to drive efficiency • Expanding neighborhoods to include more communities • New centralized functions: renewals, leasing / sales support IMPACT → Reduced FTEs by ≈ 15% from onsite staff and regional overhead from 2021 baseline → Deployed Neighborhood model to 70% of portfolio at YE24 For Same Store Communities: → Delivered Other Rental Revenue Growth of 14% in 2024, with 9% forecasted in 2025 → Payroll growth rate flat in 2024, and declined by 4% in 2023 Automate key tasks for efficiency • Virtual leasing assistant • Back-office automation (RPA) • Collections • Voice AI • Associate Resource Assistant Generate income and enable digital service experiences • Bulk Wifi at 90% of communities • Smart Access at 70% of communities STRATEGIC PRIORITIES: ACCOMPLISHMENTS & NEXT STEPS Source: Internal company reports. See Appendix for an explanation of Incremental NOI. Items in italics are in-progress DELIVER SEAMLESS, DIGITAL, SELF-SERVE EXPERIENCES IMPLEMENT NEIGHBORHOOD & CENTRALIZED STAFFING MODELS ACCELERATE AI SOLUTIONS VALUE-ADD RESIDENT SERVICES
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] OPTIMIZE PORTFOLIO ALLOCATION AND PERFORMANCE INCREASING ALLOCATION TO THE SUBURBS AND AVB EXPANSION REGIONS 10 $725M VOLUME ($) $460M 5.2% MARKET CAP RATE 4.8% $474K (2) PRICE PER HOME $320K 30% | 70% SUBURBAN | URBAN 90% | 10% Acquisitions 90% AVB EXPANSION REGIONS Dispositions 100% AVB ESTABLISHED REGIONS 2024 TRANSACTION ACTIVITY Source: Internal company reports. See Appendix for a discussion of Target Allocation. (1) Represents the Company’s 2024 projected NOI for all communities with Stabilized Operations throughout the entire 12-month period ending December 31, 2024, and Management’s expectation for NOI for the first full year of Stabilized Operations for all acquisitions and Development communities in 2024. (2) Excludes value allocated to commercial space. Suburban Allocation 70% Year-End 2023 73% Year-End 2024(1) 80% Target Allocation AVB Expansion Region Allocation 8% Year-End 2023 10% Year-End 2024(1) 25% Target Allocation 2
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] DEVELOPER FUNDING PROGRAM (DFP) • PURPOSE: Support AVB Expansion Region growth via third-party development partnerships • ACTION: Three projects under construction; $280M projected Total Capital Cost BUILD-TO-RENT (BTR) • PURPOSE: Extension of our strategy, reinforced by demographic tailwinds favoring Suburban submarkets and larger units • ACTION: Grow BTR development pipeline through new DFP partnerships and inclusion of more townhomes in AVB Developments STRUCTURED INVESTMENT PROGRAM (SIP) • PURPOSE: Drive incremental earnings growth by providing mezzanine debt or preferred equity to third-party developers • ACTION: Projecting $75M of new commitments in 2025 DEVELOPMENT UNDERWAY PROJECTED TO INCREASE > 50% BY YEAR-END 2025 $2.5B $2.3B $3.5B - $2B $4B YE 2023 YE 2024 YE 2025 FORECAST GROW BY LEVERAGING DEVELOPMENT CAPABILITIES RAMPING DEVELOPMENT START ACTIVITY TO $1.6B IN 2025; BROADENING DEVELOPMENT CAPABILITIES TO MULTIPLE GROWTH CHANNELS 11 Source: Internal company reports. 2025 Development starts based on the midpoint of the outlook range as provided on Attachment 13 in the Company’s earnings supplemental dated February 5, 2025. 3
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] LEVERAGE GROWTH-ORIENTED BALANCE SHEET UTILIZING BALANCE SHEET STRENGTH TO SUPPORT EXTERNAL GROWTH; FORWARD EQUITY PROCEEDS TO FUND ≈ 50% OF ANTICIPATED CAPITAL PLAN 12 $890M 2024 FORWARD EQUITY ACTIVITY • Secured attractively priced capital to match-fund 2025 development starts • 100-150bps of accretive spread to projected Initial Stabilized Yields • Settlement by YE 2025 $400M 2024 UNSECURED DEBT OFFERING • 5.05% effective interest rate • 95bps above U.S. 10yr Treasury Yield $725M 2024 DISPOSITION ACTIVITY • 5.2% initial Market Cap Rate • Exclusively sourced from AVB Established Regions A3 | A- MOODY’S S&P 4.2x AVBNET DEBT-TO-CORE EBITDARE CREDIT RATINGS (MOODY’S | S&P) $2.0B 5.1% > 100% MATCH-FUNDED (DEVELOPMENT UNDERWAY) Source: Internal company reports. See Appendix for a discussion of the Company’s credit ratings, a definition and reconciliation of Net Debt-to-Core EBITDAre and Match-Funded (Development Underway), and a discussion of the Company’s 2024 Forward Equity Activity. Capital sourced includes net proceeds from all equity and debt issuances, wholly-owned dispositions, and distributions from unconsolidated real estate entities. Weighted average initial cost of capital includes all equity and debt (inclusive of the effect of interest rate hedges) issuances, and wholly-owned dispositions only. INITIAL COST OF CAPITAL WTD. AVG. 2024 CAPITAL SOURCED REVIEW OF 2024 CAPITAL SOURCING KEY METRICS 4
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Avalon North Andover Andover, MA 13 2025 OUTLOOK
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] FULL YEAR 2025 OUTLOOK SUMMARY 14 Avalon Annapolis Annapolis, MD 2025 OUTLOOK(1) FULL YEAR PROJECTED CORE FFO PER SHARE GROWTH MIDPOINT OF OUTLOOK RANGE 3.5% SAME STORE RESIDENTIAL REVENUE GROWTH OPERATING EXPENSE GROWTH NOI GROWTH 3.0% 4.1% 2.4% DEVELOPMENT ACTIVITY TOTAL CAPITAL COST FOR DEVELOPMENT STARTS RESIDENTIAL NOI FROM DEVELOPMENT COMMUNITIES $ 1.6B $ 30M KEY CAPITAL ITEMS NEW CAPITAL SOURCED FROM CAPITAL MARKETS ACTIVITY AND ASSET SALES SETTLEMENT OF FORWARD EQUITY CONTRACTS CAPITAL USED FOR INVESTMENT ACTIVITIES(2) CAPITAL USED FOR DEBT REDEMPTIONS $ 960M $ 890M $ 1.3B $ 835M Source: Internal company reports. See Appendix for a reconciliation of Projected Net Income attributable to common stockholders to Projected FFO and to Projected Core FFO. (1) Projected Core FFO growth, Same Store Residential rental revenue, operating expense, NOI growth, Total Capital Costs for Development starts and Residential NOI from Development communities are based on the midpoints of the outlook ranges as provided on Attachment 13 in the Company’s earnings supplement dated February 5, 2025. (2) Includes (i) Development and NOI enhancing capitalized expenditures, including land, (ii) funding the Company's SIP commitments and (iii) joint venture funding.
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] $0.31 $0.33 ($0.29) $11.39 $ 11.01 $ 11.41 $ 11.81 NOI FROM SAME STORE & REDEVELOPMENT NOI FROM NEW INVESTMENT (incl. Dev.) CAPITAL MARKETS ACTIVITY (incl. Acq. & Disp.) OVERHEAD, JV INCOME, & MGMT FEES PROJECTED CORE FFO PER SHARE 2025 PROJECTED CORE FFO PER SHARE GROWTH DRIVERS PARTIALLY OFFSET BY CAPITAL MARKETS ACTIVITIES 15 SELECT CAPITAL MARKET ITEMS INTEREST INCOME (LOWER CASH BALANCES) - $ [0.13] IMPACT OF 2025 FORWARD EQUITY SETTLEMENT - $ [0.08] OTHER ITEMS, NET(2) - $ [0.08] COMPONENTS OF 2025 FULL YEAR PROJECTED CORE FFO PER SHARE GROWTH BASED ON THE MIDPOINT OF OUTLOOK RANGE Source: Internal company reports. See Appendix for a reconciliation of Projected Net Income attributable to common stockholders to Projected FFO and to Projected Core FFO. (1) Includes Commercial NOI (2) Other items, net includes growth from SIP interest income and higher capitalized interest, offset by the projected impact of net disposition activity and refinancing activity. (1) (1)
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 1.4% 1.0% 3.9% 3.7% - 3% 6% 2024 2025 U.S. TOTAL PERSONAL INCOME GROWTH JOB GROWTH WAGE GROWTH 5.3% 4.7% U.S. JOB AND WAGE GROWTH FORECASTS MODERATING IN 2025, JOB GROWTH IN KEY AVB RESIDENT SECTORS EXPECTED TO IMPROVE 16 Source: National Association for Business Economics, U.S. Census Bureau, Moody’s Analytics, AVB Market Research Group. 1.8% 1.4% 1.0% 1.2% 0.4% 0.7% - 1% 2% 2023 2024 2025 U.S. TOTAL FINANCE, PROFESSIONAL SERVICE, AND INFORMATION SECTORS U.S. JOB GROWTH FORECAST TOTAL AND KEY RESIDENT INDUSTRIES
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] ($250) $1,000 $2,250 2020 2021 2022 2023 2024 85 100 115 2020 2021 2022 2023 2024 INDEXED TO 100 IN 1Q 2020 RENTAL AFFORDABILITY HAS IMPROVED IN AVB ESTABLISHED REGIONS; RENTING REMAINS SIGNIFICANTLY MORE AFFORDABLE THAN HOMEOWNERSHIP 17 Source: CoStar, U.S. Census Bureau, Moody’s Analytics, National Association of Realtors, Freddie Mac, National Association of Homebuilders, AVB Market Research Group. (1) Annual effective rent (net of concessions) divided by annual median household income. (2) Based on a median monthly mortgage payment (30-year fixed rate, 20% down payment, average property tax) minus monthly apartment rent (80+ unit buildings). STRONG INCOME GROWTH SUPPORTING RENTAL AFFORDABILITY IN AVB ESTABLISHED REGIONS INDEXED RENT-TO-INCOME RATIO(1) RENTING MATERIALLY MORE AFFORDABLE THAN OWNING A HOME IN AVB ESTABLISHED REGIONS MEDIAN MORTGAGE PAYMENT LESS APARTMENT RENT(2)
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] FAVORABLE SUPPLY OUTLOOK FOR AVB ESTABLISHED REGIONS; AVB’S SUBURBAN PORTFOLIO RELATIVELY WELL POSITIONED 18 1.7% 3.9% 1.4% - 2% 4% U.S. AVB EXPANSION REGIONS AVB ESTABLISHED REGIONS PROJECTED 2025 NEW MARKET RATE APARTMENT DELIVERIES AS A % OF EXISTING INVENTORY 1.6% 1.2% - 2% 4% URBAN SUBMARKETS SUBURBAN SUBMARKETS PROJECTED 2025 NEW MARKET RATE APARTMENT DELIVERIES AS A % OF EXISTING INVENTORY AVB ESTABLISHED REGIONS Source: CoStar, AVB Market Research Group. (1) AVB Same Store portfolio weightings based on projected weighted unit count. 26% 74% AVB SAME STORE PORTFOLIO(1)
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 0.6% 0.4% 3.0% - 2% 4% RESIDENTIAL LEASE RATES CONCESSIONS & OTHER DISCOUNTS ECONOMIC OCCUPANCY OTHER RENTAL REVENUE (incl. Initiatives) UNCOLLECTIBLE LEASE REVENUE RENT RELIEF COLLECTIONS RESIDENTIAL RENTAL REVENUE GROWTH EARN-IN 0.9% SAME STORE REVENUE GROWTH OUTLOOK DRIVEN BY AN INCREASE IN LEASE RATES, OTHER RENTAL REVENUE, AND LOWER UNCOLLECTIBLE LEASE REVENUE 19 COMPONENTS OF 2025 FULL YEAR PROJECTED SAME STORE RESIDENTIAL REVENUE GROWTH BASED ON THE MIDPOINT OF OUTLOOK RANGE Source: Internal company reports. (1) Represents expected growth based on existing in-place leases as of the date of this presentation (“Embedded Gross Potential”) and projected growth in new leases signed in 2025. The Company’s forecast for Like-Term Effective Rent Change during 2025 is ≈ 3%. (2) Other rental revenue is expected to increase by ≈ 9% in 2025 (as compared to 2024). (3) Uncollectible Residential lease revenue as a % of gross Residential revenue before government rent relief is expected to be ≈ 1.4% in 2025, decreasing from ≈ 1.8% in 2024. (4) The Company expects to recognize ≈ $ 1.8 million of revenue from government rent relief collections in 2025, as compared to ≈ $ 4.3 million of recognized government rent relief collections in 2024. (2) (3) (4)(1) - 2% 4% Q1 Q2 Q3 Q4 PROJECTED 2025 QUARTERLY SAME STORE RESIDENTIAL RENTAL REVENUE GROWTH
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] (3%) - 3% 6% TOTAL SAME STORE NEW ENGLAND METRO NY/NJ MID-ATL PACIFIC NW NORTHERN CAL SOUTHERN CAL SE FLORIDA DENVER OTHER EXPANSION REGIONS 20 HIGH-END 4.0% LOW-END 2.0% MIDPOINT OF AVB ESTABLISHED REGIONS ≈ 3.1% SAME STORE REVENUE GROWTH PROJECTED TO BE RELATIVELY SIMILAR ON EAST AND WEST COASTS IN 2025 PROJECTED 2025 FULL YEAR SAME STORE RESIDENTIAL REVENUE GROWTH BY REGION MIDPOINT OF AVB EXPANSION REGIONS ≈ 1.7% Source: Internal company reports. (1) AVB Established Regions projected to represent ≈ 93% of Same Store Residential revenue in 2025; AVB Expansion Regions projected to represent approximately ≈ 7% of Same Store Residential revenue in 2025. (2) Represents 2,512 homes in Charlotte, North Carolina and Dallas, Texas. (2) (1)(1)
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] PROJECTED FULL YEAR ORGANIC SAME STORE RESIDENTIAL OPERATING EXPENSE GROWTH 3.0% PROJECTED INITIATIVE EXPENSES AVALON CONNECT, FURNISHED HOUSING LABOR EFFICIENCES PROJECTED TOTAL INITIATIVE EXPENSES 0.8% (0.3%) 0.5% 0.5% PROJECTED PHASE-OUT OF PROPERTY TAX ABATEMENT PROGRAMS 0.6% PROJECTED FULL YEAR SAME STORE RESIDENTIAL OPERATING EXPENSE GROWTH (MIDPOINT) 4.1% 21 SAME STORE OPERATING EXPENSE GROWTH PROJECTED TO DECELERATE AS OPERATING INITIATIVES AND TAX ABATEMENT PRESSURES EASE Source: Internal company reports. SELECT COMPONENTS OF PROJECTED 2025 FULL YEAR SAME STORE RESIDENTIAL OPERATING EXPENSE GROWTH - 5% 10% Q1 Q2 Q3 Q4 PROJECTED 2025 QUARTERLY SAME STORE RESIDENTIAL OPERATING EXPENSE GROWTH
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] DEVELOPMENT STARTS $ 1.6 BILLION OF NEW STARTS • Low-to-mid 6% wtd. avg. projected Initial Stabilized Yield • All projected starts in Suburban submarkets; 45% in AVB Expansion Regions TRANSACTION MARKET ACTIVITY EXPECTING TO BE NET NEUTRAL ON ASSET TRADING • Dispositions concentrated in AVB Established Regions • Acquisitions concentrated in AVB Expansion Regions SIP ACTIVITY $ 75 MILLION OF NEW COMMITMENTS • Targeting ≈ 12% rate of return on new commitments • $ 192 million of total commitments at year-end 2024 PORTFOLIO REINVESTMENT $ 110 MILLION OF ACCRETIVE INVESTMENTS • Targeting initial returns of 10%+ • Accessory dwelling units (ADUS), apartment and solar upgrades 22 PROJECTING ACCRETIVE INVESTMENTS IN 2025 ACROSS MULTIPLE PLATFORMS Source: Internal company reports 2025 Development starts based on the midpoint of the outlook range as provided on Attachment 13 in the Company’s earnings supplement dated February 5, 2025.
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] START ACTIVITY CONCENTRATED IN AVB EXPANSION REGIONS AND WEST COAST; EXCLUSIVELY IN SUBURBAN SUBMARKETS 23 PROJECTED 2025 DEVELOPMENT STARTS $1.6B PROJECTED START VOLUME 45% AVB EXPANSION REGIONS 100% SUBURBAN SELECT 2025 DEVELOPMENT STARTS Avalon San Ramon San Ramon, CA 460 homes Mid-rise Avalon Parker Parker, CO 310 homes Garden / Direct entry Source: Internal company reports 2025 Development starts based on the midpoint of the outlook range as provided on Attachment 13 in the Company’s earnings supplement dated February 5, 2025.
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 24 Will Add Photo Later Avalon Princeton Circle Princeton, NJ 24 INCREMENTAL HIGHLIGHTS
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] $620M IN TEXAS ACQUISITIONS EXPECTED TO INCREASE PORTFOLIO ALLOCATION TO AUSTIN AND DALLAS-FORT WORTH 25 TRANSACTION DETAILS 2 assets in Austin under contract for $187M → Cash purchase funded from disposition proceeds 6 assets in Dallas-Fort Worth under agreement for $432M → Funded with ~$193M of cash and ~$239M of DownREIT Units priced at $225 per unit 8 Communities 2,700 Homes 2014 Wtd. Avg. Year Built $230k Avg. Price per Home $1,675 Wtd. Avg. Rent per Home TEXAS ACQUISITION OVERVIEW Source: Internal company reports. See the Company’s press release dated February 27, 2025 for additional details. AVB Austin Assets AVB Dallas Assets TEXAS ACQUISITION OPERATING ASSETS DEVELOPMENT UNDERWAY
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] POSITIONING PORTFOLIO TO CAPTURE DEMOGRAPHIC TAILWINDS AND RESIDENT PREFERENCES; ACTIVELY PURSUING BUILD-TO-RENT (BTR) 26 93,518 HOMES 14,609 LARGE FORMAT HOMES BUILD-TO-RENT HOMES 3,554 CURRENT PORTFOLIO ACTIVELY PURSUING BTR Strategic Rationale • Extension of existing strategy, positioning in Suburban submarkets with larger unit types Product & Location • Townhomes, single family homes, mixed-density development (garden and townhome mix) Quality & Design • Low-maintenance finishes designed for long-term ownership • Attached garages, private yards, direct entry Operating Synergies • Proximity to existing AVB communities and operating neighborhoods PRIMARY GROWTH CHANNELS Developer Funding Program (DFP) • Avalon Plano → 3Q24 DFP start → 155 townhome-community, direct-entry product with two-car garages Acquisitions • Avalon Townhomes at Bee Cave → 4Q24 Acquisition → 126 townhome-community Development • 5 developments currently underway with townhome or direct entry product (TX (2), CA, NC, NJ) • Three 2025 Development starts with townhome or direct entry components (NC, CO) Source: Internal company reports. Data as of December 31, 2024. Large format homes include townhomes, 3-bedroom flats, and apartments with a den or a loft. Build-to-rent homes include duplexes, triplexes, townhomes and other direct entry homes, which, in most cases, include attached, private garage parking.
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] - 1750 3500 2024 2025 2026 # OF NEW APARTMENT HOMES OCCUPIED 3,100 homes PROJECTED 2025 DEVELOPMENT OCCUPANCIES ARE BELOW 2024 LEVELS AND EXPECTED TO REBOUND IN 2026 DEVELOPMENT OCCUPANCIES ACTUAL & PROJECTED 2024 TO 2026 DEVELOPMENT OCCUPANCIES RESIDENTIAL NOI FROM DEVELOPMENT: $44M RESIDENTIAL NOI FROM DEVELOPMENT: $30M(1) RESIDENTIAL NOI FROM DEVELOPMENT: TBD 2,125 homes 3,000 homes Source: Internal company reports. (1) 2025 Projected Residential NOI from Development based on the midpoint of the outlook range as provided on Attachment 13 in the Company’s earnings supplement dated February 5, 2025. 27
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] PROJECTED 2025 AND 2026 NEW MARKET RATE APARTMENT DELIVERIES AS A % OF EXISTING INVENTORY FAVORABLE SUPPLY OUTLOOK FOR AVB ESTABLISHED REGIONS EXPECTED TO PERSIST AND IMPROVE FURTHER INTO 2026 28 1.7% 3.9% 1.4%1.4% 2.7% 1.0% - 2% 4% U.S. AVB EXPANSION REGIONS AVB ESTABLISHED REGIONS 2025 2026 Source: CoStar, AVB Market Research Group. Long-Term Average 2000-2024 U.S.: 1.7% AVB EXPANSION REGIONS: 2.7% AVB ESTABLISHED REGIONS: 1.2%
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Avalon Bothell Commons Bothell, WA 29 APPENDIX
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] FORWARD-LOOKING STATEMENTS 30 This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company's forward-looking statements generally use the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "project," "plan," "may,“ "shall," "will," "pursue" and other similar expressions that indicate future events and trends and do not report historical matters. These statements, among other things, address the Company's intent, belief or expectations with respect to: development, redevelopment, acquisition or disposition of communities; the timing and cost of completion of communities under development or redevelopment; the timing of lease-up, occupancy and stabilization of communities; the pursuit of land for future development; the anticipated operating performance of our communities; cost, yield, revenue, NOI and earnings estimates; the impact of landlord-tenant laws and rent regulations, including rent caps; our expansion into new regions; our declaration or payment of dividends; our joint venture activities; our policies regarding investments, indebtedness, acquisitions, dispositions, financings and other matters; our qualification as a REIT under the Code; the real estate markets in regions where we operate and in general; the availability of debt and equity financing; interest rates; inflation, tariffs and other economic conditions, and their potential impacts; trends affecting our financial condition or results of operations; regulatory changes that may affect us; and the impact of legal proceedings. The Company cannot assure the future results or outcome of the matters described in these statements; rather, these statements merely reflect our current expectations of the outcomes of the matters discussed. We do not undertake a duty to update these forward-looking statements, and therefore they may not represent our estimates and assumptions after the date of this report. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, some of which are beyond our control. These risks, uncertainties and other factors may cause our actual results, performance or achievements to differ materially from the anticipated future results, performance or achievements expressed or implied by these forward-looking statements. You should carefully review the discussion under Part I, Item 1A. "Risk Factors" in this Form 10-K for further discussion of risks associated with forward-looking statements. Some of the factors that could cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, the following: we may fail to secure development opportunities due to an inability to reach agreements with third parties to obtain land at attractive prices or to obtain desired zoning and other local approvals; we may abandon or defer development opportunities for a number of reasons, including changes in local market conditions which make development less desirable, increases in costs of development, increases in the cost of capital or lack of capital availability, resulting in losses; construction costs of a community may exceed original estimates; we may not complete construction and lease-up of communities under development or redevelopment on schedule, resulting in increased interest costs and construction costs and a decrease in expected rental revenues; occupancy rates and market rents may be adversely affected by competition and local economic and market conditions which are beyond our control; our cash flows from operations and access to cost-effective capital may be insufficient for the development of our pipeline, which could limit our pursuit of opportunities; an outbreak of disease or other public health event may affect the multifamily industry and general economy; our cash flows may be insufficient to meet required payments of principal and interest, and we may be unable to refinance existing indebtedness or the terms of such refinancing may not be as favorable as the terms of existing indebtedness; we may be unsuccessful in our management of joint ventures and the REIT vehicles that are used with certain joint ventures; we may experience a casualty loss, natural disaster or severe weather event, including those caused by climate change; new or existing laws and regulations implementing rent control or rent stabilization, or otherwise limiting our ability to increase rents, charge fees or evict tenants, may impact our revenue or increase our costs; our expectations, estimates and assumptions as of the date of this filing regarding legal proceedings are subject to change; the possibility that we may choose to pay dividends in our stock instead of cash, which may result in stockholders having to pay taxes with respect to such dividends in excess of the cash received, if any; and investments made under the SIP may not be repaid as expected or the development may not be completed on schedule, which could require us to engage in litigation, foreclosure actions, and/or first party project completion to recover our investment, which may not be recovered in full or at all in such event.
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 2024 Forward Equity Activity, as discussed in this presentation, describes forward contracts the Company entered into during the year ended December 31, 2024, the Company entered into forward contracts to sell 4,047,113 shares of common stock with settlement expected to occur no later than December 31, 2025 at a gross weighted average price of $226.22 per share for approximate proceeds of $889,293,000, net of fees. The proceeds that the Company expects to receive on the date or dates of settlement are subject to certain customary adjustments during the term of the forward contracts for the Company's dividends and a daily interest rate adjustment. As of December 31, 2024, the Company had not settled any of the outstanding forward contracts. Asset Preservation Capex represents capital expenditures that the Company does not expect will directly result in increased revenue or expense savings. AVB Established Regions include markets located in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. AVB Expansion Regions include markets located in Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. Commercial represents results attributable to the non-apartment components of the Company's mixed-use communities and other non-residential operations. Credit ratings, as provided in this presentation, may not reflect the potential impact of risks relating to the structure or trading of the Company's securities and are provided solely for informational purposes. Credit ratings are not recommendations to buy, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in its sole discretion. The Company does not undertake any obligation to maintain the ratings or to advise of any change in ratings. Each agency's rating should be evaluated independently of any other agency's rating. An explanation of the significance of the ratings may be obtained from each of the rating agencies. Development is composed of consolidated communities that are either currently under construction or were under construction and were completed during the current year. These communities may be partially or fully complete and operating. Dividend Growth, presented as annualized dividend growth in this presentation, represents the change in the Company’s annual common dividend per share as a compound annual growth rate. DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS 31
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] DownREIT Units means units representing limited partnership interests in the AVB DownREIT. Each DownREIT Unit will be entitled to receive quarterly distributions at the same rate as quarterly dividends on a share of the Company’s common stock. Following the one-year anniversary of the closing date, each holder of a DownREIT Unit will have the right to initiate a transaction in which each DownREIT Unit may be redeemed for a cash amount related to the then-current trading price of one share of the Company’s common stock or, at the Company’s election, one share of the Company’s common stock. DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS 32
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] EBITDA, EBITDAre and Core EBITDAre are considered by management to be supplemental measures of our financial performance. EBITDA is defined by the Company as net income or loss computed in accordance with GAAP before interest expense, income taxes, depreciation and amortization. EBITDAre is calculated by the Company in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), as EBITDA plus or minus losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property, with adjustments to reflect the Company's share of EBITDAre of unconsolidated entities. Core EBITDAre is the Company’s EBITDAre as adjusted for non-core items outlined in the table below. By further adjusting for items that are not considered part of the Company’s core business operations, Core EBITDAre can help one compare the core operating and financial performance of the Company between periods. A reconciliation of EBITDA, EBITDAre and Core EBITDAre to net income is as follows (dollars in thousands): DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS 33 Q4 2024 Net income 282,092$ Interest expense and loss on extinguishment of debt 64,519 Income tax benefit (253) Depreciation expense 215,539 EBITDA 561,897$ Gain on sale of communities (121,841) Unconsolidated entity EBITDAre adjustments (1) 4,102 EBITDAre 444,158$ Unconsolidated entity losses, net 1,686 Structured Investment Program loan reserve (286) Advocacy contributions 13,242 Hedge accounting activity (19) Severance related costs (192) Expensed transaction, development and other pursuit costs, net of recoveries 9,792 Other real estate activity (117) Legal settlements and costs 713 Core EBITDAre 468,977$
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 1) Includes joint venture interest, taxes, depreciation, gain on dispositions of depreciated real estate and impairment losses, if applicable, included in net income. Economic Occupancy is defined as total possible Residential revenue less vacancy loss as a percentage of total possible Residential revenue. Total possible Residential revenue (also known as “gross potential”) is determined by valuing occupied units at contract rates and vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant apartments at their Market Rents, Economic Occupancy takes into account the fact that apartment homes of different sizes and locations within a community have different economic impacts on a community’s gross revenue. FFO and Core FFO are generally considered by management to be appropriate supplemental measures of our operating and financial performance. FFO is calculated by the Company in accordance with the definition adopted by Nareit. FFO is calculated by the Company as Net income or loss attributable to common stockholders computed in accordance with GAAP, adjusted for gains or losses on sales of previously depreciated operating communities, cumulative effect of a change in accounting principle, impairment write-downs of depreciable real estate assets, write-downs of investments in affiliates due to a decrease in the value of depreciable real estate assets held by those affiliates and depreciation of real estate assets, including similar adjustments for unconsolidated partnerships and joint ventures, including those from a change in control. FFO can help one compare the operating and financial performance of a real estate company between periods or as compared to different companies because adjustments such as (i) gains or losses on sales of previously depreciated property or (ii) real estate depreciation may impact comparability between companies as the amount and timing of these or similar items can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates. Core FFO is the Company's FFO as adjusted for non-core items outlined in the table below. By further adjusting for items that we do not consider be part of our core business operations, Core FFO can help with the comparison of core operating performance of the Company between periods. A reconciliation of Net income attributable to common stockholders to FFO and to Core FFO is as follows (dollars in thousands): DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS 34
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS 35 Q4 Q4 Full Year Full Year 2024 2023 2024 2023 Net income attributable to common stockholders 282,092$ 241,969$ 1,081,994$ 928,825$ Depreciation - real estate assets, including joint venture adjustments 214,547 209,694 843,224 811,717 Distributions to noncontrolling interests - - - 25 Gain on sale of previously depreciated real estate (121,841) (77,994) (363,300) (287,424) Casualty loss on real estate - 568 2,935 9,118 FFO attributable to common stockholders 374,798 374,237 1,564,853 1,462,261 Adjusting items: Unconsolidated entity (gains) losses, net (1) 1,686 (137) (33,137) (4,161) Joint venture promote (2) - (23) - (1,519) Structured Investment Program loan reserve (3) (286) 771 (1,057) 1,186 Loss on extinguishment of consolidated debt - - - 150 Hedge accounting activity (19) 310 61 566 Advocacy contributions 13,242 1,425 19,156 1,625 Executive transition compensation costs - 300 304 1,244 Severance related costs (192) 132 1,787 2,625 Expensed transaction, development and other pursuit costs, net of recoveries (4) 9,792 9,265 13,649 30,583 Other real estate activity (117) 533 (753) (174) For-sale condominium imputed carry cost (5) 22 68 84 602 Legal settlements and costs (6) 713 393 3,002 457 Income tax benefit (7) (253) 2,438 445 10,153 Core FFO attributable to common stockholders 399,386$ 389,712$ 1,568,394$ 1,505,598$ Weighted average common shares outstanding - diluted 142,705,114 142,229,122 142,458,604 141,643,788 Earnings per common share - diluted 1.98$ 1.70$ 7.60$ 6.56$ FFO per common share - diluted 2.63$ 2.63$ 10.98$ 10.32$ Core FFO per common share - diluted 2.80$ 2.74$ 11.01$ 10.63$
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 1) Amounts consist primarily of net unrealized gains on technology investments. 2) Amount for 2023 is for the Company's recognition of its promoted interest in Archstone Multifamily Partners AC LP. 3) Changes are the expected credit losses associated with the Company's lending commitments primarily under its SIP. The timing and amount of any actual losses that will be incurred, if any, is to be determined. 4) Amounts for 2024 include a write-off of $8,947 for one development opportunity that the Company determined is no longer probable. Amounts for 2023 include write-offs of $27,455 for seven development opportunities that the Company determined are no longer probable. 5) Represents the imputed carry cost of the for-sale residential condominiums at The Park Loggia. The Company computes this adjustment by multiplying the Total Capital Cost of completed and unsold for-sale residential condominiums by the Company's weighted average unsecured debt effective interest rate. 6) Amounts for 2024 include legal costs associated with various antitrust litigation matters. 7) Amounts for 2023 are primarily for the recognition of taxes associated with The Park Loggia dispositions. Incremental NOI represents additional NOI that was not achieved in the prior period before the implementation of the initiatives and that is attributable, in future periods, to the implementation of the initiatives. Initial Stabilized Yield represents NOI as a percentage of Total Capital Cost for the first 12 months after Stabilized Operations and is weighted based on the Total Capital Cost of each community. DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS 36
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Like-Term Effective Rent Change for an individual apartment home represents the percentage change in effective rent between two leases of the same lease term category for the same apartment. The Company defines effective rent as the contractual rent for an apartment less amortized concessions and discounts. Like-Term Effective Rent Change with respect to multiple apartment homes represents an average. New Move-In Like-Term Effective Rent Change is the change in effective rent between the contractual rent for a resident who moves out of an apartment, and the contractual rent for a resident who moves into the same apartment with the same lease term category. Renewal Like-Term Effective Rent Change is the change in effective rent between two consecutive leases of the same lease term category for the same resident occupying the same apartment. Market Cap Rate is defined by the Company as Projected NOI of a single community for the first 12 months of operations (assuming no repositioning), less an estimate of typical capital expenditure allowance per apartment home, divided by the gross sales price for the community. Projected NOI, as referred to above, represents management’s estimate of projected rental revenue minus projected operating expenses before interest, income taxes (if any), depreciation and amortization. For this purpose, management’s projection of operating expenses for the community includes a management fee of 2.5% and an estimate of typical market costs for insurance, payroll and other operating expenses for which the Company may have proprietary advantages not available to a typical buyer. The Market Cap Rate, which may be determined in a different manner by others, is a measure frequently used in the real estate industry when determining the appropriate purchase price for a property or estimating the value for a property. Buyers may assign different Market Cap Rates to different communities when determining the appropriate value because they (i) may project different rates of change in operating expenses and capital expenditure estimates and (ii) may project different rates of change in future rental revenue due to different estimates for changes in rent and occupancy levels. The weighted average Market Cap Rate is weighted based on the gross sales price of each community. Match-Funded (Development Underway) is calculated by the Company as the sum of (i) Total Capital Cost, disbursed to date for all wholly-owned Development communities that had not achieved Stabilized Operations for the entire three month period ended December 31, 2024, (ii) cash and cash equivalents, (iii) 2024 Forward Equity Activity, and (iv) Q4 2024 cash from operations available for investment, annualized divided by the Total Capital Cost, under construction for all wholly-owned Development communities that had not achieved Stabilized Operations for the entire three month period ended December 31, 2024. A calculation of Match-funded (Development Underway) is as follows (dollars in millions): DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS 37
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Net Debt-to-Core EBITDAre is calculated by the Company as total debt (secured and unsecured notes, and the Company's Credit Facility and commercial paper program) that is consolidated for financial reporting purposes, less consolidated cash and restricted cash, divided by annualized fourth quarter 2024 Core EBITDAre. A calculation of Net Debt-to-Core EBITDAre is as follows (dollars in thousands): DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS 38 Total debt principal (1) 8,134,429$ Cash and cash equivalents and restricted cash (229,684) Net debt 7,904,745$ Core EBITDAre 468,977$ Core EBITDAre, annualized 1,875,908$ Net Debt-to-Core EBITDAre 4.2x Q4 2024 Total Capital Cost, disbursed to date 1,702$ Cash and cash equivalents 109 2024 Forward Equity Activity 889 Q4 2024 cash from operations available for investment, annualized 473 Total 3,172$ Total Capital Cost, under construction and completed 3,016$ Match-funded (Development underway) 105%
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 1) Balance at December 31, 2024 excludes $41,216 of debt discount and deferred financing costs as reflected in unsecured notes, net, and $15,964 of debt discount and deferred financing costs as reflected in notes payable, net, on the Condensed Consolidated Balance Sheets. 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, depreciation expense, income tax expense (benefit), casualty loss, (gain) loss on sale of communities, other real estate activity and net operating income from real estate assets sold or held for sale. The Company considers NOI to be an important and appropriate supplemental performance measure to net income because it helps both investors and management to understand the core operations of a community or communities prior to the allocation of any corporate-level property management overhead or financing-related costs. NOI reflects the operating performance of a community and allows for an easier comparison of the operating performance of individual assets or groups of assets. In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impact to overhead as a result of acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets. Projected FFO and Projected Core FFO, as provided within this presentation in the Company’s outlook, are calculated on a basis consistent with historical FFO and Core FFO, and are therefore considered to be appropriate supplemental measures to projected net income from projected operating performance. A reconciliation of the ranges provided for Projected FFO per share (diluted) for the full year 2025 to the ranges provided for projected EPS (diluted) and corresponding reconciliation of the ranges for Projected FFO per share to the ranges for Projected Core FFO per share are as follows: DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS 39 ` Low High Range Range Projected EPS (diluted) - Full Year 2025 8.24$ 8.74$ Depreciation (real estate related) 6.12 6.12 Gain on sale of communities (3.29) (3.29) Projected FFO per share (diluted) - Full Year 2025 11.07 11.57 Unconsolidated entity gains, net 0.01 0.01 Expensed transaction, development and other pursuit costs, net of recoveries 0.04 0.04 Legal settlements and costs 0.02 0.02 Projected Core FFO per share (diluted) - Full Year 2025 11.14$ 11.64$
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Projected NOI, as used within this presentation for certain Development communities and in calculating the Market Cap Rate for dispositions, represents management’s estimate, as of the date of this presentation (or as of the date of the buyer’s valuation in the case of dispositions), of projected stabilized rental revenue minus projected stabilized operating expenses. For Development communities, Projected NOI is calculated based on the first twelve months of Stabilized Operations following the completion of construction. In calculating the Market Cap Rate, Projected NOI for dispositions is calculated for the first twelve months following the date of the buyer’s valuation. Projected stabilized rental revenue represents management’s estimate of projected gross potential minus projected stabilized economic vacancy and adjusted for projected stabilized concessions plus projected stabilized other rental revenue. Projected stabilized operating expenses do not include interest, income taxes (if any), depreciation or amortization, or any allocation of corporate-level property management overhead or general and administrative costs. In addition, projected stabilized operating expenses for Development communities do not include property management fee expense. Projected gross potential for Development communities and dispositions is generally based on leased rents for occupied homes and management’s best estimate of rental levels for homes which are currently unleased, as well as those homes which will become available for lease during the twelve-month forward period used to develop Projected NOI. The weighted average Projected NOI as a percentage of Total Capital Cost is weighted based on the Company’s share of the Total Capital Cost of each community, based on its percentage ownership. Residential represents results attributable to the Company's apartment rental operations, including parking and other ancillary Residential revenue. Q4 2024 cash from operations available for investment, annualized is the Company’s fourth quarter 2024 Core FFO, less (i) fourth quarter 2024 dividends declared – common and (ii) fourth quarter 2024 Asset Preservation Capex, annualized. Q4 2024 cash from operations available for investment, annualized does not represent the Company’s Net cash provided by operating activities as presented in the Company’s consolidated financial statements. A reconciliation of Q4 2024 cash from operations available for investment, annualized to Core FFO is as follows (dollars in thousands): DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS 40 Q4 2024 Core FFO attributable to common stockholders 399,386$ Dividends declared - common (242,252) Established and Other Stabilized Asset Preservation Capex (38,990) Q4 2024 cash from operations available for investment 118,144$ Q4 2024 cash from operations available for investment, annualized 472,576$
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 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 Operations, as of the beginning of the respective prior year period. Therefore, for 2024 operating results, Same Store is composed of consolidated communities that have Stabilized Operations as of January 1, 2023, are not conducting or are not probable to conduct substantial redevelopment activities and are not held for sale or probable for disposition within the current year. Stabilized Operations is defined as operations of a community that occur after the earlier of (i) attainment of 90% physical occupancy or (ii) the one-year anniversary of completion of development or redevelopment. Suburban locations are defined as submarkets having less than 3,500 households per square mile. Sunbelt Regions include Alabama, Arizona, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, New Mexico, Nevada, South Carolina, Tennessee, and Texas. Target Allocation represents the Company’s future target allocation based on the Company’s Current Allocation. Total Capital Cost includes all capitalized costs projected to be or actually incurred to develop the respective Development or Redevelopment community, including land acquisition costs, construction costs, real estate taxes, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees and a contingency estimate, offset by proceeds from the sale of any associated land or improvements, all as determined in accordance with GAAP. Total Capital Cost also includes costs incurred related to first generation commercial tenants, such as tenant improvements and leasing commissions. For Redevelopment communities, Total Capital Cost excludes costs incurred prior to the start of redevelopment when indicated. With respect to communities where development or redevelopment was completed in a prior period or the current period, Total Capital Cost reflects the actual cost incurred, plus any contingency estimate made by management. Total Capital Cost for communities identified as having joint venture ownership, either during construction or upon construction completion, represents the total projected joint venture contribution amount. For joint ventures not in construction, Total Capital Cost is equal to gross real estate cost. DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS 41
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] Total Enterprise Value represents the aggregate of the market value of a company’s common stock and the outstanding principal balance of a company’s debt. A calculation of the Company’s Total Enterprise Value is as follows (dollars in thousands): Total Shareholder Return, presented as cumulative total shareholder return and annualized total shareholder return in this presentation, represents the change in value with all dividends reinvested. Annualized total shareholder return is presented as the compound annual growth rate. Urban (locations) are defined as submarkets having 3,500 or more households per square mile. DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS 42 As of December 31, 2024 Common stock 31,291,617$ Total debt 8,134,429 Total Enterprise Value 39,426,046$
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[FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] 43