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• The Marriott or Hilton of apartment complexes. (Like these well-known hotel chains, AvalonBay develops, owns, and professionally manages a portfolio of branded properties, but for long-term residential rentals instead of short-term hotel stays.)
• The Enterprise Rent-A-Car for apartments. (Similar to how Enterprise owns and manages a large fleet of vehicles for rent, AvalonBay owns and manages a vast portfolio of apartment units available for lease.)

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• Residential Apartment Leasing: Providing apartment homes for lease to individuals and families across various markets.
• Multifamily Property Development: Engaging in the acquisition, design, and construction of new apartment communities.
• Property Management: Overseeing the day-to-day operations, maintenance, and resident services for its portfolio of apartment properties.

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AvalonBay Communities (symbol: AVB) is a Real Estate Investment Trust (REIT) that develops, acquires, owns, and operates apartment communities. As such, it sells primarily to individuals who rent apartments directly from the company. It does not have major corporate customers in the traditional sense.

The company serves the following categories of individual customers:

1. Young Professionals and Millennials: This segment includes individuals and couples, typically in their 20s and 30s, who are often early-to-mid career professionals. They seek modern, amenity-rich apartment living in prime urban or desirable suburban locations with convenient access to employment centers, transportation, and entertainment. They value flexibility, convenience, and a vibrant community atmosphere, often prioritizing renting over homeownership for lifestyle or financial reasons.
2. Established Professionals and Small Families: This category encompasses individuals and couples in their late 30s through 50s, including those with young children. They typically have more established careers and stable incomes. They rent high-quality apartments or townhomes, often seeking excellent school districts, spacious layouts, and premium amenities in well-located communities that offer a desirable lifestyle without the burdens of homeownership.
3. Empty Nesters and Lifestyle Renters: This group consists of older adults, often in their 50s and beyond, including those who have sold larger homes or are downsizing. They seek a maintenance-free, convenient, and amenity-rich living experience. They are often drawn to communities that offer social opportunities, easy access to services, and a lock-and-leave lifestyle in desirable urban or suburban settings.

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Benjamin W. Schall, Chief Executive Officer and President

Mr. Schall joined AvalonBay Communities as President and a director in January 2021, and became Chief Executive Officer effective January 3, 2022. Before joining AvalonBay, Mr. Schall served as the Chief Executive Officer and President and a trustee of Seritage Growth Properties, a publicly traded REIT. Earlier in his career, he was the Chief Operating Officer of Rouse Properties, Inc., a publicly traded mall and retail REIT that was subsequently acquired. He also held the position of Senior Vice President at Vornado Realty Trust, another publicly traded REIT.

Kevin P. O'Shea, Chief Financial Officer

Mr. O'Shea has served as AvalonBay's Chief Financial Officer since June 2014. His prior roles at AvalonBay include Executive Vice President—Capital Markets from January 2013 to May 2014 and Senior Vice President—Investment Management from July 2003 until January 2013. Before joining the company, Mr. O'Shea was an Executive Director at UBS Investment Bank, where he gained experience in real estate investment banking. Earlier in his career, he practiced commercial real estate and banking law as an attorney. Mr. O'Shea is also a Trustee of Urban Edge Properties, a publicly traded REIT.

Sean J. Breslin, Chief Operating Officer

Mr. Breslin has been the Chief Operating Officer of AvalonBay Communities since January 2015, with responsibility for the company's operating platform. He joined AvalonBay in 2002, holding various roles including Executive Vice President—Investments and Asset Management, and Senior Vice President—Redevelopment and Asset Management. Prior to joining AvalonBay, Mr. Breslin was the Chief Operating Officer of CWS Capital Partners.

Matthew H. Birenbaum, Chief Investment Officer

Mr. Birenbaum has been AvalonBay's Chief Investment Officer since January 2015, overseeing the company's investment strategy, development, construction, investments, and market research functions. Before re-joining AvalonBay in October 2011, he was the founding principal of Abbey Road Property Group, LLC, a multifamily development and investment firm. He also served as a Senior Vice President at EYA. Earlier in his career, Mr. Birenbaum was a Regional Vice President of Development with AvalonBay.

Timothy J. Naughton, Chairman of the Board

Mr. Naughton has served as the Chairman of the Board of AvalonBay Communities since May 2013, and as Executive Chairman throughout 2022. He was the Chief Executive Officer from 2012 until January 2022, and President from 2005 until January 2021. Mr. Naughton has been with AvalonBay and its predecessors since 1989, holding positions such as Chief Operating Officer, Chief Investment Officer, and Regional Vice President – Development and Acquisitions. He is a senior advisor to Navitas Capital, a property technology early-stage venture capital firm, and Energy Impact Partners, a climate technology venture capital firm. Mr. Naughton is also a director of Park Hotels & Resorts, Inc. and previously served as a director of Welltower, Inc.

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The key risks to AvalonBay Communities (AVB) include:

1. High Interest Rates and Rising Costs: AvalonBay Communities faces significant challenges from high interest rates, which increase borrowing costs for new developments and existing debt. Inflation also contributes to rising operating expenses and construction costs, putting pressure on the company's earnings and growth plans. Operational efficiency in its core portfolio is currently under pressure due to these rising costs, with operating expenses outpacing rental revenue growth in some periods.
2. Economic and Political Uncertainties, and Regulatory Changes: The company is exposed to risks from economic downturns, job market fluctuations, and shifts in housing affordability, particularly in its concentrated high-cost, high-wage metropolitan areas. Furthermore, changes in government regulations, such as zoning laws, building codes, and especially rent control policies (as seen in areas like Los Angeles), can significantly impact operations and profitability. Market pressures, including elevated concessions in urban areas and political climates, also contribute to these uncertainties.
3. Competitive Landscape and Oversupply in Certain Markets: The real estate market is highly competitive, with numerous well-capitalized investors and developers vying for similar assets and development opportunities. This intense competition, coupled with new entrants and alternative living arrangements, can place pressure on rental rates and occupancy levels. While new supply is projected to decrease in some core coastal regions, AvalonBay's expansion into new markets may initially face headwinds due to a high volume of new apartment deliveries and existing inventory.

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The widespread and potentially permanent adoption of remote and hybrid work models, which diminishes the necessity for professionals to reside in high-cost, high-density urban centers near traditional employment hubs. This shift could reduce demand, erode pricing power, and lessen the premium associated with AvalonBay's core markets, potentially leading to slower rental growth or decreased occupancy as residents pursue more affordable or spacious housing options in secondary cities or suburban/exurban areas.

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The main product or service of AvalonBay Communities (AVB) is multifamily apartment rentals.

The addressable market for their main product/service in the U.S. is:

• The market size of the Apartment Rental industry in the United States is estimated to be $295.3 billion in 2025.
• The United States multifamily market size was valued at USD 265 billion in 2022 and is projected to reach USD 466 billion in 2030.

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Share Repurchases

• AvalonBay completed its $500 million 2020 Stock Repurchase Program, repurchasing 2,024,387 shares for $337.66 million, with $151.8 million used in Q3 2025 for 786,797 shares.
• Following the completion of the 2020 program in Q3 2025, a new $500 million stock repurchase program (the "2025 Stock Repurchase Program") was adopted with no expiration date.

Share Issuance

• In September 2024, AvalonBay commenced an underwritten public offering of 3,200,000 shares of common stock through forward sale agreements, with potential net proceeds of approximately $808.61 million upon full physical settlement, expected no later than December 31, 2025.
• Additionally, in 2024, the company entered into forward contracts under its continuous equity program to sell 367,113 shares for approximately $80.69 million, also expected to settle by December 31, 2025.

Outbound Investments

• During the nine months ended September 30, 2025, the company acquired eleven communities (excluding a joint venture buyout) totaling 3,285 apartment homes for a total purchase price of $805.45 million, which included DownREIT units for six Dallas-Fort Worth assets.
• In Q1 2025, AvalonBay expanded its presence in Texas by acquiring eight apartment communities, including two in Austin for $187 million and six in Dallas-Fort Worth for $431.5 million.
• The company committed to provide aggregate investments of up to $48 million in multifamily development projects through two new Structured Investment Program (SIP) commitments during the nine months ended September 30, 2025.

Capital Expenditures

• AvalonBay's capital expenditures for fiscal years 2020 to 2024 averaged $15.417 million, peaking in 2020 at $28.505 million and reaching a five-year low of $4.678 million in 2024.
• As of September 30, 2025, the company had 21 wholly-owned development communities under construction, with an estimated total capital cost of $3.012 billion.
• During the nine months ended September 30, 2025, AvalonBay completed two wholly-owned communities for $274 million and started construction on six apartment communities with an estimated total capital cost of $1.044 billion.