Equity Residential to Acquire AvalonBay Communities for $34.91 Billion

Equity Residential (EQR) entered a merger agreement on May 21, 2026, to acquire AvalonBay Communities, Inc. (AVB) in an all-stock deal valued at $34.91 billion.

Deal Structure:

AvalonBay shareholders will receive 2.793 shares of Equity Residential common stock for each share of AvalonBay common stock owned, representing a value of $185.12 per AvalonBay share, which is at a discount of 0.84% from the stock’s last close.

Company Profile:

AvalonBay is an equity REIT that develops, acquires, redevelops, and manages apartment communities across major metropolitan markets in the U.S. The company owns interests in 319 apartment communities with over 98,000 apartment homes across 11 states and Washington, D.C.

Equity Residential is an equity REIT that acquires, develops, owns, and manages apartment properties in major U.S. metropolitan markets. The company owns or has investments in more than 300 properties with over 85,000 apartment units across coastal and high-growth cities in the U.S.

Deal Details and Timeline:

The Board will initially comprise seven trustees of Equity Residential and seven directors of AvalonBay. Steve Sterrett, the Lead Independent Trustee of Equity Residential, will serve as Chairman of the combined company. David Neithercut, Non-Executive Chair of Equity Residential, and Tim Naughton, Non-Executive Chairman of AvalonBay, will each serve as trustees of the combined company.

Benjamin Schall, AvalonBay’s CEO, will become the CEO of the combined company. Mark Parrell, Equity Residential’s CEO, will retire when the deal closes.

The combined company will maintain dual headquarters in Arlington, Virginia, and Chicago, Illinois. The company will operate under a new name.

After the merger, AvalonBay shareholders will own about 51.2% of the combined company, while Equity Residential shareholders will own about 48.8%.

The deal is expected to be completed in the second half of 2026.

The combined company expects to provide investors with an initial annualized dividend of $2.81 per share. Both companies also intend to continue paying their regular quarterly dividends until the transaction is completed.

AvalonBay received financial advice on the deal from Goldman Sachs, J.P. Morgan, and Wells Fargo, while Goodwin Procter served as its legal advisor. Equity Residential was advised financially by Morgan Stanley, Centerview Partners, and BofA Securities, with Wachtell, Lipton, Rosen & Katz acting as its legal counsel.

Equity Residential is paying 18.43 times the adjusted funds from operations (AFFO) for AvalonBay Communities.

Deal Metrics:

For an in-depth analysis of this merger and acquisition transaction’s metrics, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of AvalonBay Communities, Inc. (AVB) by Equity Residential (EQR)

The Deal Metrics page for each merger or acquisition includes:

• A comprehensive spread history chart tracking the merger from its announcement to completion or failure.
• A detailed timeline of every event as the merger progresses, including the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
• Access to news and SEC filings relevant to the merger.
• A history of deal updates.
• And much more.

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Editor’s Note: Baranjot Kaur contributed to this article