Avalonbay Communities: 2Q26 First Look

Research evidence excerpt

Avalonbay Communities: 2Q26 First Look

s.

K: Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation (including compensation for brokerage services,

if applicable) from Avalonbay Communities within the past 12 months.

L: Avalonbay Communities is, or during the past 12 months has been, an investment banking client of Barclays Bank PLC and/or an affiliate.

M: Avalonbay Communities is, or during the past 12 months has been, a non-investment banking client (securities related services) of Barclays Bank

PLC and/or an affiliate.

Valuation Methodology: Our price target is based on a -10% discount to our F-NAV estimate, which assumes a 5.5% going-in cap rate and long-term

unlevered IRR of 6.8% for the core real estate portfolio, plus adjustments for our estimate of NPV for the company's development platform.

Risks which May Impede the Achievement of the Barclays Research Valuation and Price Target: Upside risks include: - High levels of supply in

certain markets could negatively impact the company’s ability to grow rents. - High rates of inflation could negatively impact the company’s operating

expense structure, inclusive of repairs & maintenance, real estate taxes, insurance, utilities, employee wages and benefits, and other general

corporate expenses. - Rising interest rates could negatively impact the company’s cost of debt financing, as well as the market value of its owned real

estate. - Geographic concentration in certain U.S. markets could negatively impact the company’s operations in the event of adverse local economic

conditions, regulatory or environmental conditions, or other events. Downside risks include worse-than-expected rent growth or less accretive

investment activity than we are currently modeling.

22 July 2026 7