Good morning, ladies and gentlemen, welcome to the AvalonBay Communities and Equity Residential's merger of equals joint conference call. You may enter the question and answer queue at any time during this call by pressing star one. If your question has been answered or you wish to remove yourself from the queue, press star two. If you are using a speakerphone, please lift the handset before asking your question, and we will ask that you refrain from typing and have your cell phones turned off during the question- and- answer session. During the Q&A session, in an effort to get everyone's questions, the company asks that you limit your questions to one and re-enter the queue with additional questions or follow-ups. Your host for today's conference call is Marty McKenna, Senior Vice President of Investor and Public Relations at Equity Residential. You may begin your conference call. Thank you. Good morning, and thanks for joining us to discuss Equity Residential and AvalonBay's merger of equals. Our featured speakers today are Ben Schall, President and CEO of AvalonBay, and Mark Parrell, President and CEO of Equity Residential. Both the press release and investor presentation are available on both companies' investor websites. Please be advised that certain matters discussed during this conference call may constitute forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to certain economic risks and uncertainties. The companies assume no obligation to update or supplement these statements that become untrue because of subsequent events. Now, I will turn the call over to Ben Schall. Good morning, everyone, and thank you for joining us. On behalf of both companies and our boards of directors and trustees, Mark and I are extremely excited to announce the merger of equals between AvalonBay Communities and Equity Residential. This is a landmark combination, the largest merger in the modern REIT era, and one that we believe creates a new and fundamentally stronger company with the capabilities, scale, and balance sheet strength to redefine leadership in rental housing, enhance the experience of our residents, and deliver structurally superior earnings growth, dividend growth, and value creation for shareholders. Our combination brings together two premier public apartment companies with complementary portfolios spanning over 180,000 apartment homes and with a pro forma enterprise value of almost $70 billion, more than 2.5x the next closest peer. With that said, we want to emphasize upfront that our combination is not about getting bigger just to be bigger. The opportunity is to create a meaningfully stronger company, a true NewCo that will draw on the foundational strengths of both organizations while also bringing together a newly formed team, creating a new culture, and building a differentiated set of capabilities that will drive a step function change in our growth profile relative to what either company could achieve on its own. Both companies have built industry-leading platforms over many years with deep talent and associates who truly care, strong cultures, operating discipline, development expertise, and long-standing trusted relationships with residents, associates, communities, and investors. Our ambition, to build on those foundations to create a combined company that is stronger together, one that leverages its exceptional people and differentiating capabilities to unlock a structurally higher growth profile. Stronger together starts by creating a durable operating advantage. NewCo will be powered by a leading operating platform that leverages technology, AI, centralized services, and leading regional teams, enhancing the resident experience while driving operating efficiencies and margin expansion. Operational scale matters because it allows us to spread operating and technology investments across a much larger base of homes at a meaningfully lower cost per unit. It also provides greater data richness, stronger market knowledge, and deeper within market density, all of which improve decision-making across leasing, maintenance, resident services, marketing, purchasing, and capital allocation. Stronger together also means further unleashing earnings growth and value creation through development. Combined company will have a near-term tailwind of over $4 billion of development under construction, more than 10,000 market rate and dedicated affordable apartments across 32 communities. Our intention is to accelerate and further grow our development activity to generate even stronger returns for shareholders while also increasing overall housing stock. Every home we build creates construction jobs, supports local subcontractors and suppliers, and expands the property tax base that funds schools, infrastructure, and public services. Third, stronger together means combining two of the industry's strongest balance sheets, one that will have robust access to capital, including over $2 billion of annual cash flow and self-funding capacity to deploy into external growth opportunities. Our focus will be on allocating capital to those opportunities with the highest risk-adjusted returns from development to NOI enhancing reinvestment to acquisitions and other strategic opportunities. With a larger and more diverse asset base combined with stronger internal and external growth, the combined company will be positioned for a more enduring cost of capital advantage to further facilitate future growth. Finally, stronger together means drawing on the immense talent from both organizations. While we are not announcing the leadership team today, we expect the management team to include substantial representation from both companies, as will be true down through the new organization. There's a longstanding mutual respect that exists between both companies that creates the foundation for success together. Looking forward, we are excited to build on that foundation by investing in our people, adopting best practices that will position us as an employer of choice, and tapping into the next layers of leadership to pursue new areas of growth. We also recognize that a combination of this size comes with responsibility to our residents, to the communities where we operate, and to the broader housing market. We welcome that responsibility. We have our track record, and our commitments demonstrate that we take it seriously. I will now turn the call over to Mark. Thanks, Ben, and thanks to all of you for joining us today. On behalf of the Equity Residential board and our entire team across the country, we are pleased to enter into this transaction to create the leading rental housing provider in the country. At Equity Residential, we have spent more than 30 years innovating and creating value for shareholders and believe that this is a natural next step on that journey. We are very proud of what we have accomplished as Equity Residential and very excited for this next chapter. For me, this will be the end of my time at the company after 27 years, with the last eight as its CEO and a prior 11-year stint as CFO. I was honored to lead an outstanding Equity Residential team that always strived to do the right thing for our customers, our shareholders, and for each other. Thanks to all my Equity Residential colleagues for an amazing ride. I am committed to working with Ben through this transition to put together two great teams that have a promising joint future. Why merge and why do it now? We see the rental housing industry as being at an important inflection point. First, the industry landscape has evolved, and from the perspective of both EQR and AVB, the status quo is not an option. The sector has matured, and it is harder for large apartment REITs to truly differentiate. This has been particularly true for EQR and AVB, given similar approaches and strategies. Too often, relative performance is dictated by geography, which markets are stronger in a given year or even a given quarter. This is not a sustainable way to consistently generate outsized returns. The investor landscape has also changed, with a continuing shift to ownership to index funds and generalists. To compete in this new world, one needs to become more relevant, and we see our greatly enhanced scale and distinct growth profile as providing that relevance and distinction. We firmly believe that the next phase of our outperformance in our sector will be driven less by simply owning assets in the right markets in that particular year or quarter, and more by having the capabilities to operate those assets better through cycles, especially by applying cutting-edge technology at scale, having the ability to invest through cycles more effectively, being able to efficiently convert scale into sustainable earnings growth. We also believe that the combined company will have a real cost of capital advantage over its public and private competitors. This should be different than the last 20 years, when private sector players and the broader industry benefited from declining interest rates and declining cap rates. The real estate economy no longer has the same tailwind from declining cap rates, and the combined company's scale, ability to apply more technology faster to all areas of its business, and its superior access to capital should provide a meaningful advantage relative to players in both the public and private rental housing space. Companies that can demonstrate structurally higher growth, superior capital allocation, and a stronger balance sheet, as the combined company is uniquely positioned to do, should have greater flexibility to invest when opportunities emerge and should win the return battle. I'm also excited to see the opportunities that the combined company creates for the fantastic teams from both companies. Ben talked about the mutual respect and admiration that EQR and AVB have for each other. This has been forged through decades of competing against one another and solidified more than a decade ago when we partnered together to acquire the Archstone assets. Archstone was a large and complicated transaction. Both EQR and AVB came through it with flying colors. We expect the combination to be accretive to both Equity Residential and AvalonBay shareholders. On a run rate basis and using 2026 Core FFO guidance as a base, we expect similar accretion to both companies in the range of about 2%. From a governance and leadership perspective, the combined company will have a board initially composed of seven existing Equity Residential trustees and seven existing AvalonBay directors. Steve Sterrett, EQR's lead independent trustee, will serve as chair of the new company. The company will be dual-headquartered in Chicago, Illinois, and Arlington, Virginia, and will operate under a new name to be announced at closing. This is a combination built around shared ownership, shared governance, and a shared opportunity to create the company that is stronger than either organization on its own. I'll turn the call back over to Ben to take you through the presentation. Thank you, Mark. I'm now going to go deeper into the combined company's areas of opportunity, referencing select pages from the investor presentation that we posted earlier this morning. For our combination to be successful, we need the core to be strong. That means executing the integration extremely well, protecting the resident experience, bringing together the best of both organizations, and building a combined operating model that becomes the launchpad for future growth. The first step in this process is to execute on an identified set of corporate and operational efficiencies, as described on slide seven. We're projecting $175 million of gross synergies from corporate overhead savings, property management, overhead efficiencies, and property expense savings. After estimated real estate tax reassessments, we are expecting net synergies of $125 million. We expect $125 million of run- rate annual operating synergies to be fully in place by the end of 18 months, with more than 85% in place by the end of 2027. These synergies are the first rotation of the flywheel, the foundation from which we will invest and grow. As described on slide nine, the next rotations of the flywheel will be driven by further leveraging the combined company's differentiated capabilities. Operating scale and margin improvement, along with a larger and more diversified asset base, will drive superior internal growth. Those operational benefits also drive stronger returns on new investments, further allowing us to leverage the combined company's market presence, capabilities, and local teams to surface unique development and investment opportunities, all leading to superior external growth. NewCo's ability to consistently drive superior internal growth and superior external growth will translate into an enduring cost to capital advantage, which we can then utilize to facilitate future accretive growth, the accelerating flywheel in action. Zooming in closer on the operating platform, Northern California provides an example of what market depth makes possible, as highlighted on slide 11. Combined company will have 84 communities and approximately 24,000 homes in the region. When you have that kind of depth, the operating model changes in very tangible ways. Data becomes richer. Decision-making improves. Regional leaders can manage with better visibility and span of control. Teams can become more specialized. More activity can be insourced or centralized. Marketing and purchasing become more efficient. The outcomes are concrete. Lower operating expenses per unit, enhanced resident experiences, and improved operating margins. With approximately 95% market overlap, this is how we will drive enhanced margins and drive additional NOI region by region. As we add homes to the platform in the future via new investments, we'll bring them on at an even lower marginal cost, improving the return profile of future growth while enabling us to deliver better service to residents. Another critical advantage that the combined company will have is our ability to further accelerate the piloting and adoption of new technologies and to spread those costs across a wider portfolio. Slide 12 highlights AVB and EQR's very successful joint history with EliseAI, which allowed us to bring conversational AI to the vast majority of our prospective residents. A partnership that is now expanding to utilize AI tools to communicate across the full customer journey. The broader point is that NewCo will have the scale and capacity to invest in the next frontier of operations at a meaningfully lower cost per unit than competitors. We can identify emerging technologies, pilot them across a meaningful platform, scale what works, and spread the cost across a much larger base of homes. That investment benefits residents directly, faster response times, better digital tools, more consistent service, while also driving the operating efficiencies that benefit shareholders. We also expect a broader and richer set of data to optimize our operating and investment decisions and outcomes, as highlighted on slide 13. The combined company will have proprietary data from decades of interactions with residents, including over 60 million pieces of customer feedback. Our scale will allow us to mine these data sets to better serve customers, provide our associates with higher quality data for real-time decision-making, and inform new investment decisions. Let's now turn to development's role in driving growth. Moving to slide 14. NewCo will have approximately $4.4 billion of development in progress, representing roughly 10,800 homes, with projected initial stabilized yields above 6%. That creates embedded growth over the next several years. I want to be clear about what this development pipeline also represents beyond the financial returns. NewCo will be one of the country's leading creators of new rental housing. In a country with a significant and well-documented housing shortage, that matters. We're not just building earnings growth. We are building housing supply that communities need. We are confident that we can meaningfully grow the development platform from here through an improved cost structure from a larger pipeline, improved operating margins that allow more development to underwrite favorably, and deeper relationships with third-party developers. Beyond what we have under construction, combined company has approximately $4.2 billion of development rights, representing roughly 9,800 homes. More than half of that future pipeline includes affordable and mixed income components, reflecting a genuine commitment to be part of the housing solution. As Mark noted and is emphasized on slide 15, we also believe cost of capital will be a more important differentiator in the years ahead. Companies with scale, balance sheet strength, and structurally higher growth will have greater flexibility to invest when opportunities arise. For NewCo, capital allocation will be a core capability. Not just having more capital, but deploying it to the highest risk-adjusted returns across development, acquisitions, reinvestment, and across markets, submarkets, product types, and price points. Moving to slide 16 to bring us to a close on our prepared remarks. In year one, success is about integration excellence. A seamless day one, meaningful progress on synergies, and a team operating as one. That is the foundation everything else is built on. I want to be direct about what it means for our residents. They should experience no disruption. The people they know, the service they expect, the communities they call home, all of that continues without interruption. In years two and three, success means platform acceleration Combined operating model delivering margin expansion, development starts meaningfully scaled, and technology and AI advantages compounding across the portfolio. Over time, success means market leadership, providing superior rental housing solutions and customer service to residents, expanding housing supply, delivering superior earnings growth and total shareholder performance for our shareholders. A company that is recognized not just for its superior financial performance, but for the quality of homes it provides and the communities it invests in. We are extremely excited by the opportunity in front of us. With that, we appreciate your time today. We are happy to take your questions. Thank you. As a reminder, if you'd like to join the question queue, please press star one on your telephone keypad. We ask that you each keep to one question and rejoin the queue for additional questions. Our first question comes from the line of Eric Wolfe with Citi. Please proceed with your question. Thanks. It's Nick Joseph here with Eric. Mark, appreciate your comments on, I guess, the apartment sector broadly and challenges for the companies in terms of differentiation and driving alpha. Can you just walk through why this merger versus different alternatives, either leaning into more asset sales and buying back stock or a larger company sale? Did you explore other alternatives as part of this process? Thanks for that question, Nick. We're going to save some of those details for the proxy. Want to leave you that to enjoy later. Certainly, the idea of doing stock buybacks isn't something NewCo dismisses either. The ability to create perpetual continuous earnings growth from these operational improvements, from a better cost of capital giving us better capital allocation decisions, development and otherwise, and then all the other things that NewCo can unlock that Ben just went through, is just very attractive to our board, I think very attractive to our shareholders. We do see this combination as unique among the choices the company had because of its ability to accelerate earnings growth through the years. Again, we think the integration efforts here will be relatively straightforward given the very similar cultures, a lot of similarity in systems. We're ready for the challenge. We're excited for that. I think it's going to be, again, a growth accelerant for our shareholders. Nick, from an AvalonBay perspective, I want to emphasize again the trust and respect that exists across the organizations top-down. That's a key ingredient here. Mark just touched on the complementary natures of these businesses, which is part of what gives us confidence as we think about integration and moving forward with this new company. The other part is it's complementary, but it's also very differentiating, right? The ability here to create a truly differentiated model where we can lean into a set of capabilities to deliver a structurally higher level of growth. That's beyond what either of our companies can deliver today, and that's what we're excited about going forward. Hey, it's Eric. Can you guys, I guess along the same lines, can you just talk about what's in that sort of portfolio NOI synergies? I think it goes back to what you were just saying about operating at a sort of higher level, and then you kind of gave the timeline to achieve, I think the overall synergies. Just curious for this specific bucket when you might be able to achieve those? Sure. For folks' reference, if you go to slide seven in the presentation, we have the breakdown of synergies across corporate overhead, property management overhead, and portfolio NOI. The core part here and the enduring part are the efficiencies that we can create going forward. That very much is driven out of what I refer to as the ecosystem of leveraging technology, centralized services, and the neighborhood benefits. You think about the two companies together, that opportunity is on steroids, right? We can really lean in. On the operating side, I'm particularly excited about the future opportunities from technology. The NewCo is going to be positioned to be able to make investments both at levels and in ways really that very few competitors will be able to make. We'll continue to lean in there to really strengthen that ecosystem. That's the bulk of what's driving it. With respect to timing, as I said in the prepared remarks, for the $125 million of net synergies, they'll be in place by the end of 18 months. We expect the bulk of it to be in place by the end of 2027. If I could just tack on just a little because it's sort of a little bit of storytelling. There's a slide in the deck about EliseAI, which is a company that both Equity Residential and AvalonBay have been involved with, and that's an excellent efficiency discussion because it's something that because of the technology involved, is very powerful. It's also very expensive to develop this kind of software. Equity Residential is co-developing it with the software firm, and that'll be sold. That product will be. We won't own it. NewCo will have the ability to create those kind of products on its own and either resell them to the industry more broadly or keep it for its own benefit. There are things that NewCo will be uniquely able to do and accelerate even beyond the numbers on the page Ben just narrated that I think are really special, like invest in technology at scale, that even at the size Equity Residential or AvalonBay is right now, we just can't do. It's just not possible. That I think in the future, NewCo will be able to do. Thank you. Thank you. Our next question comes from the line of Adam Kramer with Morgan Stanley. Please proceed with your question. Just unpacking the synergies a little bit more. I was wondering if you could double-click on maybe the scale benefits of what a combined company would look like, right? If I just look at sort of the Boston or broader Massachusetts exposure, I think it would be 16,000, 17,000 units on a combined basis, or maybe that same store, but thereabout. A slight sort of look at what would be the efficiencies of having that sort of exposure versus 7,000 or 10,000 on a standalone basis, right? I think of both you guys as sort of being really good operators, right? Having already done the paring, other efficiencies over time. What would sort of be the added benefits, added efficiencies from a property management perspective on a combined basis? Yeah. Thanks for that, Adam, and let's use Northern California, which we have on slide 11 in the presentation, as an example. The two companies together are going to have over 80 communities, over 20,000 units, real market depth. I do comment that it sounds like a lot, but in terms of its percentage of overall stock, it's still only 3% of overall stock. When we think about putting the SIS portfolio together, and to my comments about combining it with the technology and centralization benefits, we will be able to drive real operating efficiencies. We've underwritten a component of that in our synergy numbers, but that is just the start, right? There is definitely more to come over time. In terms of more specifics as we think about what comes from this market depth. Obviously, more and more data helps to improve our decision making, enhance span of control for regional leaders. We think about a regional leader being able to handle a wider portfolio of assets. Having teams in these markets where you can have certain groups who can specialize just in certain functions, right? They're really good at this one function, and they can then take that across a broader portfolio. There are, for sure, economies of scale, right? Think about marketing. Great example. The ability for a NewCo, and we will have a new name for NewCo. We think about NewCo's reach and its presence, particularly online. Think about NewCo's reach in the world of AI search. All of that will be very powerful as we look ahead. Thank you. Our next question comes from the line of Steve Sakwa with Evercore ISI. Please proceed with your question. Yeah, thanks. I was wondering if you could just maybe touch on the Proposition 13 impact. I know you've got a $50 million sort of placeholder here. Is that applicable to just one of the two companies? Obviously, one is the buyer and effectively one is a seller here. I guess just how do we sort of think about that $50 million, and what do you think the timing of that is to kind of bleed into the pro forma financials? Hey, Steve, it's Mark. We did put in a $50 million estimate on page seven. That is under the assumption that AvalonBay, as we said, will merge into the Equity Residential legal structure. That would be how the transfer taxes and property tax reassessment would be triggered. It's almost entirely California, though there are some other states. There is back and forth there. This estimate is just that, an estimate. I would say, Steve, once the transaction is concluded, there's going to be a back and forth with assessors. We have very capable teams that'll have those very robust conversations. We think $50 million is a good estimate, again, there will be some back and forth. As Ben said, it's kind of an 18-month process for the synergies. It's also, frankly, probably an 18-month to two-year process of determining the final landing point on some of these property tax reassessment issues. Thank you. Our next question comes from the line of John Pawlowski with Green Street. Please proceed with your question. Hey, good morning. Thanks for the time. I had a follow-up on Eric's question on the $60 million in NOI synergies. Are there any revenue synergies embedded in that number? I couldn't tell from your comments whether these are costs that the current standalone companies are incurring today that are visible that you can cut, or it's more speculation on AI and other costs you would have to spend if you went alone down the line that you think will be unlocked, if it's more speculative in terms of cost savings down the line. Yeah, thanks for that, John. Again, referencing slide 11. The figures here, we've got pretty detailed roadmaps for each one of these components, including on the property management overhead and portfolio NOI. These are tangible, out-of-the-gate, we're executing types of items. As I said before, this is just the starting point, your comments about sort of places where we're making further investments, I very much see this as a consistent roadmap of driving stronger and stronger operating margins over time. To the second piece of your question. About 80% of this NOI is expense driven. The other 20% is in the service revenue component, give you one example. We have a furnished housing program that we think has opportunities to bring to the wider portfolio, we've underwritten some dollars associated with that uplift. Thank you. Our next question comes from the line of John Kim with BMO Capital Markets. Please proceed with your question. Thank you. I guess one of the hurdles of being a larger company is the impact of developments. I'm wondering if you could talk about if you could grow the development pipeline to be a larger percentage of your enterprise value so that it has a more meaningful impact to earnings? Avalon has been focusing a lot on suburban development. I'm wondering if this changes your strategy in terms of where you developed and at what price points. Yeah, thanks, John. From a development perspective, I'd say that the baseline is to double the level of activity that both the companies have going on today. The ambition is to find opportunities where we can grow even further to generate a larger portion of external growth. I talked about some of the potential reasons for that. One of them being with a stronger operating model, we'll be able to deliver stronger returns, inherently, there are more projects that we'll underwrite. We'll be best positioned to execute on more projects. Another way to put it, we'll be best positioned to get a larger portion of the share of development that's happening in these markets. In terms of suburban, urban, where this capital heads, I think as both companies have been, we're going to focus capital on where the highest risk-adjusted returns are. That will change over time, and that happens at the market level, sub-market level, product, price point. That's definitely a commitment going forward. Thank you. Our next question comes from the line of Alexander Goldfarb with Piper Sandler. Please proceed with your question. Hey, good morning. Congrats, Ben and Mark. Wish you best in retirement. Just a bigger question, and you highlighted it with the comments on housing and affordability, clearly more politicized environment. Real estate tends to not be subject to antitrust and all that fun stuff, but just if you could provide some thoughts given the climate, if there's any concern over regulators or antitrust or anything like that that's going on currently. Yeah. Hey, Alex. Mark Parrell. Thanks for that question. We think of this deal as very pro-housing because as Ben elaborated, it's very pro-housing supply. There'll certainly be people throwing rocks and such, but this deal is helpful overall to the amount of housing production in our country. In no market are we more than 2% or 3% of the competitive stock. All of these markets, via development, via investments, that's true in the established regions collectively for the company and each of our expansion regions. I do expect over time, as I hope you would expect, we'll go through a process. We'll have a lot more data. We think about each sub-market and market differently. When you roll in the benefits of neighborhooding, that could potentially lead to some different decisions. Really, the emphasis will be in and around just continuing to optimize the portfolio for superior growth. That'll be an element of kind of top-down direction as we spend more time on the collective portfolio, then also asset and bottoms-up. You'll continue to see that refinement for us, and you should expect it in a company of this size and scale. We'll be investing a lot of dollars, and we're also going to want to be recycling capital into new investments as we look forward. Thank you. Our next question comes from the line of Nick Yulico with Scotiabank. Please proceed with your question. Oh, thanks. Good morning. Question is, clearly there's a lot of operating synergies that you laid out here, which are substantial, and there's a benefit to immediate FFO accretion. I guess my question is how the companies are thinking about driving improved FFO growth over time as a combined entity. What I'm wondering is if there's a way to kind of use your platform here to consolidate more of the private market. Are you thinking about a third-party management business, a funds business? Any other sort of opportunity to kind of use this combined best-in-breed platform to help drive sort of better earnings growth over time, which I think it sounds like was one of the reasons for the merger as you guys gave some significant thought to that, and the board as well on driving better stock valuations. Thanks. Yeah, definitely. The short answer is yes. Right? The premise here is, this company, we're going to get the core right, have a set of differentiated capabilities, and use that as the launchpad for a supercharged level of growth. The series of areas that you just ran through, I consider all those as potential opportunities. I do think about the power of the combined company just having an expanded market presence, more relevant to public equity investors, also more relevant to private capital investors. You're seeing a number of the large-scaled REITs move in that direction. That's an opportunity we can consider down the road. To have a set of capabilities both on the operating side, on the investment side, we're going to want to translate that into a cost of capital advantage and put that cost of capital advantage to work to increase further and further scale. Thank you. Our next question comes from the line of Michael Goldsmith with UBS. Please proceed with your question. Good morning. Thanks a lot for taking my question. Both sides have historically talked about wanting to achieve margin expansion, margins have been stuck kind of right around 70%. Do you think this gives you the scale to help push through that ceiling? Thanks. I'm going to start. It's Mark. Part of the conversation about margin is about revenue growth, frankly, not being particularly good the last couple of years. If you look at expense growth, especially controllable expense growth, has been better, and I think NewCo is positioned to have even better controllable expense growth going forward. I think that's part, Michael, of the margin discussion. On the revenue side, again, it isn't mostly about raising rents above market as much as it is providing other services, as Ben said, to our residents that they want. Bulk cable was a great example. Bulk internet, pardon me. Of that, Ben gave another example. Certainly, we could provide property-level insurance to people. They need that service. We could provide it over scale better. Insurance is a statistical game helped by having larger numbers. There's just so many levers to pull here on the helpful revenue side, I'll call it, and on the expense side, that we expect that whatever the natural rate of revenue growth is and whatever the natural rate of expense growth is, we'll be higher or lower, respectively, than those numbers and drive the machine that will give us better margins to do investment activity, as Ben just elaborated in the prior question. Yeah. Michael, my one addition to that is I do very much see this combination as this is a breakout type of moment. As it relates to operating margins, when you think about this level of scale, the cost of bringing on that next asset. That marginal cost, take it across in terms of staffing, technology, becomes very low. Part of it's unlocking that next future wave of growth, which will then, as an overall basis, bring down our expense structure over time. Thank you. Our next question comes from the line of Haendel St. Juste with Mizuho Securities. Please proceed with your question. Hey, guys. Thanks for taking the question. I wanted to go back to Rich's earlier question about this expansion markets. You each had a preexisting goal of getting to about 20%, 25% exposure there. Curious how this kind of stacks up amongst your near-term priorities. This deal clearly makes that a bit more challenging. Just a question on the closing here. What are the important things to focus on? Is it just the proxy? When do you expect to hold the votes? Any regulatory reviews expected to occur? Thanks. Sure. Let me take the second part there first. Yeah, expected to be a fairly normal course process. In the next 30- 45 days, we'll file the proxy. It'll go through the normal SEC review. We've commented that we're expecting a close in the second half of this year. It's not subject to any regulatory types of approvals. On your first question on the expansion markets, I do expect the combined company to continue to grow in those markets. As everyone knows, it's a select set of markets and sub-markets and positioning there. We're not at this point putting out new portfolio allocation targets for the new company. Going back to my comments earlier, that'll be part of the process as we go through and look at a top-down level and in a very detailed kind of asset by asset, sub-market by sub-market level to determine what we think is the optimized target portfolio allocation that we can set NewCo's sights on. Thank you. Our next question comes from the line of Julien Blouin with Goldman Sachs. Please proceed with your question. Yeah. Hi. Thank you for taking my question. I was wondering if you could maybe dig into a little bit more the advantage you get from a larger proprietary data set. Specifically sort of like how does that maybe differ today, that advantage, versus, I don't know, 5, 10 years ago? How do you see that really sort of playing out? Yeah. The increasing power of data analytics connected with AI tools is a momentous one that both companies have sort of been headed down the path on. One, this just gives us double the amount of proprietary data to mine. If you go to slide 13, you can see some of the statistics we put together over the last, call it couple decades. 4 million lease transactions, 9 million service requests, 60 million touch points in terms of customer feedback, right? When you think about then applying that, the way we think about it, there's a set of operational outcomes and there's a set of investment outcomes. The operational outcomes that we've highlighted, think about optimizing renewals and concession activity. Doing a better job or sort of a more refined approach to demand forecasting. Predictive analytics as it relates to CapEx, right? All of that is helping drive superior internal growth. On the investment side, having just more data, more touch points, we really do feel like the next chapter here is to take that data and apply it even further to our investment decisions, and help drive when we talk about driving at the highest risk-adjusted returns, right? Really looking at that and doing that across different types of capital allocation and also different markets, sub-markets, price points, and product, all of it being very much data informed. The collective power that we have together and then the ability to invest in that data analytics capability is markedly different. I put this very much in a category. There are not going to be many other platforms that are going to have the size, scale, and opportunity and invest the ways that we are in data analytics, and I see that as a key driver of our success going forward. Thank you. Our next question comes from the line of Rich Anderson with Cantor Fitzgerald. Please proceed with your question. Hey, thanks. Good morning. Excuse me. Congratulations, everyone, particularly Mark. Job well done. I wanted to go back, Mark, you mentioned the shared Archstone acquisition with AvalonBay. Both of your companies are a product of past M&A activity, whether it's Merry Land or Evans Withycombe or the Avalon and Bay merger in 1998. I'm curious how that history of M&A activity informed this ultimate decision to come together. How much did it play a role in your process? Is that history just too far back to have mattered in the decision tree that you went through in the present tense? Thanks. I'm going to split that up. We're not doing M&A for M&A's sake. This deal had a moment. This moment is now. We've talked about those reasons that I think, Rich, are pretty evident here, the operational benefits, the data richness, capital allocation efficacy, and the ability to sort of do some new and special things like third-party management otherwise. The history does help. There's a lot of us here together doing this deal that worked together on Archstone. It just creates this sort of shared culture of directness and honesty when you're doing a complicated deal like this. I would say that that shared history was helpful because it just allowed us to be more efficient. A lot of this process was, of course, complex, but we were able to get through it because everyone here has got a sense of goodwill, knows each other well, or many of us know each other well from Archstone. Ben and I have gotten to know each other very well over the last five years of him being in our industry. I think that shared history helped make the process easier, but the moment wasn't driven by M&A. It was driven just the opportunity to be better, to be bigger, but better, is what I think really drove it, as opposed to just M&A for M&A's sake. Thank you. Our next question comes from the line of Omotayo Okusanya with Deutsche Bank. Please proceed with your question. Yes. Good morning, everyone. I wanted to kind of go back to this idea around the regulatory environment. It's just been really noisy. The RealPage settlement on the single family for rent side. A lot of those guys own less than 1% of the industry, yet they may be barred from buying homes going forward. Yet a big part of the argument for this deal is kind of bigger will get you better. I think right now, regulators look at that and kind of say bigger has not been better for the average consumer, and they're kind of pushing back against that concept on the residential side. I just would love to kind of hear your thoughts a little bit more about from a regulatory perspective, how do you kind of expect to avoid some of the potential pushback that could come to the deal? Yeah, thanks. Two major themes there. One is we very much see the combined company as part of the solution here. Again, the combined company is going to be one of the larger creators of new housing in our markets. Beyond that, I do want to touch on both companies have a history. We're long-term owners. We've got regional teams that are embedded in those markets, right? Long-standing relationships with nonprofit partners, including on the affordable housing side, long-standing relationships with local governments. They come to us when they want multifamily built in their markets. We have that reputation coming in. We also highlighted in our press release, we're going to build on our prior commitments as it relates to affordable housing with some new initiatives, and we're launching a seed fund to help nonprofit developers get more affordable housing built. We'll be expanding our relationships with affordable housing and nonprofit developers as we think about preserving affordable housing in our marketplaces. We're very much here to be part of the solution, create new housing and partner with local municipalities and communities. Thank you. Our next question comes from the line of Alex Kim with Zelman & Associates. Please proceed with your question. Hey, guys. Thanks for taking my question, and all the detail that you've provided on the synergies. I was curious, what are the biggest execution risks to achieving the timeline that you've laid out, and which synergy category carries the most integration risk? Thanks for that, Alex. We feel pretty confident in the upfront synergy numbers that we've identified. Again, we've got the collective teams who have gone into a lot of detail here, have detailed roadmaps mapped out month by month. The big next part, which I'm excited about, spending a lot of time getting to know the EQR teams, getting our teams together, and get the next step going here as it relates to the integration. When we get to closing, day one, we want to be out on a sprint, right? No disruption to the business, but more importantly, we're moving. I'm excited to take that next step together and to bring the two companies together and embark on that journey. Thank you. Ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to Mr. Schall for any final comments. Thank you, Mark. Appreciate your partnership. Congratulations to both companies, to our associates. Thank you for your commitment, your leadership, your dedication. Very excited to embark on this next journey for both of the companies and to launch NewCo as one of the country's great real estate companies. Thank you for your time. Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.