AvalonBay Communities, Inc.

Overview

• Corporate form: Maryland corporation elected to be taxed as a real estate investment trust (REIT) for federal income tax purposes.
• Core business: Develop, redevelop, acquire, own and operate apartment communities. Also engages in related investment activities through joint ventures and a mezzanine loan/preferred equity platform.
• Purpose: Operates under the banner “Creating a Better Way to Live,” focusing on customer value, associate engagement, and shareholder returns.
• Brand strategy:
  • Avalon: Upscale apartment living with high-end amenities.
  • AVA: High-energy, transit-served neighborhoods with smaller, often roommate-friendly units.
  • eaves by Avalon: Value segment in suburban areas.
  • Kanso: Simpler, lower-cost living with high-quality homes and low-touch operations.

Portfolio and geographic footprint (as of January 31, 2026)

• 292 operating apartment communities containing 88,768 apartment homes across 11 states and the District of Columbia.
  • 284 communities with 86,374 homes consolidated for financial reporting.
  • 8 communities with 2,394 homes held by unconsolidated entities in which AvalonBay holds an ownership interest.
• Development and expansion pipeline:
  • 27 wholly-owned development communities under construction or completed and in lease-up, expected to contain 9,692 apartment homes at completion.
  • Rights to develop an additional 33 communities that, if developed as expected, would contain 10,532 apartment homes.
• Target markets:
  • Established focus markets: New England; New York/New Jersey metropolitan area; Mid-Atlantic; Pacific Northwest; Northern and Southern California.
  • Expansion regions: Raleigh-Durham and Charlotte (NC); Southeast Florida; Dallas and Austin (TX); Denver (CO).
  • Primary operations and development are concentrated in regions with high employment growth, high-wage sectors, and favorable quality-of-life attributes.

Operations and development approach

• Development and redevelopment:
  • Acts as its own development manager, general contractor and construction manager, sometimes via a wholly owned subsidiary; uses third-party developers or contractors when advantageous.
  • Uses a Development Finance Program (DFP) to source and construct communities owned and operated by AvalonBay.
  • Redevelopment strategy aims to keep total investment below replacement cost and maintain market position, including smaller-scale interior renovations to enhance resident experience.
• Asset management and operations:
  • In-house development and investments platform with dedicated development, redevelopment, and property management teams.
  • Centralized shared services center handles back-office and administrative functions (billing, collections, resident inquiries), enabling on-site associates to focus on resident services.
  • On-site teams are incentivized with performance-based bonuses tied to revenue, expenses, NOI, occupancy, retention, and service metrics.
  • May engage third-party managers in certain regions or circumstances.
• Additional activities:
  • Structured Investment Program (SIP): mezzanine loans or preferred equity to third-party multifamily developers in existing regions.
  • Occasional development, ownership, or leasing of commercial space at communities when it enhances value or supports entitlements.
  • Investments through a taxable REIT subsidiary (TRS) in technology, sustainability, and related real estate services; TRS can also support non-customary resident services.
  • For-sale real estate development partnerships and opportunities to develop and hold real estate for sale via TRS when advantageous.

Financing and capital structure

• Liquidity and capital flexibility:
  • $2.5 billion revolving unsecured credit facility.
  • $1.0 billion unsecured commercial paper program (backed by credit facility capacity).
  • Uses a diverse funding approach, including potential dispositions of operating communities and equity or debt issuances as needed.
• Joint ventures:
  • May enter into joint ventures to own or develop communities with varying ownership percentages; JV terms determine operating and disposition discretion.
• Other capital strategies:
  • Employs equity, debt, and potential property exchanges and continually evaluates additional capital strategies to balance liquidity, growth, and risk.

Summary

AvalonBay is a large-scale REIT that owns and operates multifamily residential communities in major U.S. markets. The company combines in-house development and asset management capabilities with centralized back-office operations, a multi-brand approach to serve varied renter segments, and multiple financing tools to support growth and shareholder value.