Analogy 1: The Starbucks of urban apartments.

Analogy 2: Like a Marriott or Hilton, but for long-term apartment living in big cities instead of hotel stays.

• Residential Property Leasing: Leasing apartment units to high-quality, long-term renters across various major U.S. cities.
• Residential Property Development: Developing new residential properties to expand their portfolio of apartment communities.
• Residential Property Management: Managing the operations, maintenance, and resident experience for their extensive portfolio of apartment units.

Vivmark Residential (VMRK), formed from the merger of Equity Residential and AvalonBay Communities, operates as a residential real estate investment trust (REIT) focused on the acquisition, development, and management of apartment properties in dynamic metropolitan areas.

The key risks to Vivmark Residential's business include:

1. Macroeconomic Conditions and Rental Market Dynamics: The company's performance is significantly influenced by the overall health of the economy, including employment rates, wage growth, and population trends in its target metropolitan areas. An economic downturn, job losses, or stagnant wages can lead to reduced demand for apartment rentals, lower occupancy rates, and downward pressure on rental income and growth.
2. Interest Rate Environment: As a REIT, Vivmark Residential is sensitive to changes in interest rates. Rising interest rates can increase the cost of borrowing for property acquisitions, development projects, and the refinancing of existing debt. This can lead to higher operating expenses, compressed profit margins, and potentially lower property valuations.
3. Competition and Oversupply in Key Markets: Vivmark Residential operates in highly sought-after metropolitan areas, which are often subject to significant development and competition from other residential property owners and developers. An oversupply of new rental units or intense competition within these markets could lead to lower occupancy levels and a decrease in rental rates.

Widespread adoption of remote and hybrid work models, fundamentally challenging the premium value proposition of living in expensive, dense urban centers by enabling high-quality long-term renters to relocate to more affordable areas while maintaining city-based employment.

The addressable markets for Vivmark Residential of Beneficial Interest (symbol: VMRK) relate to the rental housing sector in the United States.

Vivmark Residential's core business involves the acquisition, development, and management of multifamily residential properties, primarily apartment units, located in and around dynamic U.S. cities, including coastal markets and high-growth metropolitan areas such as Atlanta, Dallas/Austin, and Denver.

Based on current estimates, the addressable markets are:

• U.S. Rental Housing Market: This market, which includes single-family homes, multifamily apartments, and condominiums leased to tenants, was valued at an estimated USD 1.91 trillion in 2026. It is projected to grow to USD 2.41 trillion by 2034, demonstrating a compound annual growth rate (CAGR) of 3% from 2026 to 2034.
• U.S. Multifamily Market: A segment of the broader rental housing market, the U.S. multifamily market was valued at USD 265 billion in 2022 and is expected to reach USD 466 billion by 2030, with a CAGR of 7.31% between 2023 and 2030. The apartment segment leads this market, with over 40 million apartment units in the U.S.

Vivmark Residential of Beneficial Interest (VMRK) is expected to drive future revenue growth over the next 2-3 years through several key strategies following its recent merger of equals between AvalonBay Communities (AVB) and Equity Residential (EQR) in August 2026. These drivers capitalize on the combined entity's enhanced scale and market position.

One significant driver is the company's **ability to increase rental income and leverage pricing power** across its portfolio. Vivmark Residential benefits from strong resident retention, a scarcity of alternative owned housing options, and reduced concessions, which collectively support recurring revenue and the ability to command higher rental rates. For instance, the company reported a modest year-over-year growth in rental income for the first half of 2026.

Secondly, **disciplined capital allocation through strategic deployment**, encompassing development, acquisitions, and portfolio transactions, will contribute to revenue growth. Vivmark Residential aims to optimize its portfolio by focusing on investments with the highest risk-adjusted returns, including capital recycling and per-unit cash flow optimization.

Thirdly, the company's continued focus on **expansion within urban and high-demand metropolitan markets** is a key growth driver. The company specializes in strategically located rental properties that attract high-quality, long-term renters. Vivmark Residential develops, redevelops, acquires, and manages apartment communities in prominent areas such as Boston, New York, Washington D.C., Seattle, San Francisco, Southern California, Denver, and expansion regions like Raleigh-Durham, Charlotte, Southeast Florida, Dallas, and Austin.

A fourth major driver stems directly from the **benefits of the merger of equals**, which created Vivmark Residential. This merger significantly enhances the company's self-funding capacity, projected to exceed $2 billion annually, thereby amplifying earnings growth and shareholder value. The combined entity now boasts over 184,000 rental apartments and more than 11,100 apartments under construction, providing substantial scale and capabilities to drive structurally superior earnings growth.

Finally, a **reduction in new housing supply within its target markets** is expected to create a favorable environment for revenue growth. Projections indicate a substantial decline in new apartment deliveries in Vivmark Residential's markets over the next few years. This decrease in competition is likely to lead to higher occupancy rates and increased rental pricing power for the company's properties.

Capital Allocation Decisions for Vivmark Residentialof Beneficial Interest (VMRK)

Share Repurchases

• Vivmark Residential (formerly Equity Residential) repurchased $220 million of common shares during the first quarter of 2026, contributing to a total repurchase activity of $500 million since August 2025.
• In the fourth quarter of 2025, the company repurchased approximately 3.4 million common shares for about $205.7 million.
• The Board of Trustees reauthorized a share repurchase program on December 11, 2025, allowing for the repurchase of up to 13.0 million common shares.

Share Issuance

• As part of the "merger of equals" with AvalonBay Communities, Inc., completed on August 17, 2026, each share of AvalonBay common stock converted into 2.793 Vivmark Residential common shares, resulting in AvalonBay shareholders owning approximately 51.2% of the combined entity.
• During the fourth quarter of 2025, Vivmark Residential issued 304,188 common shares in exchange for 304,188 operating partnership units.

Inbound Investments

• The "merger of equals" with AvalonBay Communities, Inc., completed on August 17, 2026, formed Vivmark Residential, creating a combined entity with a pro forma equity market capitalization of approximately $53 billion and an enterprise value of roughly $71 billion.
• S&P Global Ratings upgraded the combined company's credit rating to 'A', citing materially larger scale, operating efficiencies, and a conservative financial policy due to the merger.

Outbound Investments

• In 2025, Vivmark Residential was a net seller of assets, disposing of 11 properties for approximately $1.1 billion while acquiring nine properties for approximately $636.8 million.
• During the second quarter of 2026, the company sold two properties, comprising 515 apartment units in Los Angeles and San Francisco, for an aggregate sale price of about $164.0 million.
• Vivmark Residential maintains a strategy of recycling capital by selling noncore assets or exiting markets, using the proceeds for its development pipeline or acquisitions.

Capital Expenditures

• For 2026, expected capital expenditures for Residential Same Store Properties include $125.0 million for NOI-Enhancing initiatives and $185.0 million for Recurring Capital Expenditures, totaling $310.0 million.
• The company's capital expenditures are primarily focused on maintaining and enhancing its portfolio of high-quality multifamily residential properties in urban and coastal markets.
• The combined company (Vivmark Residential) will have over 10,000 apartment units under construction, reflecting continued investment in development.