AVB & EQR: Slightly Lowering NFFO Estimates, But Slightly Raising PTs and Maintaining Buy Ratings

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AVB & EQR: Slightly Lowering NFFO Estimates, But Slightly Raising PTs and Maintaining Buy Ratings

Truist Securities

Equity Research Report June 15, 2026

REAL ESTATE INVESTMENT

TRUSTS: Apartment REITs AVB & EQR: Slightly Lowering NFFO

Estimates, But Slightly Raising PTs and

Michael Lewis, CFA Maintaining Buy Ratings

212-319-5659 What’s Incremental to Our View: We are lowering our 2026 and 2027 NFFO estimates Michael.R.Lewis@truist.com

by about 1% for AVB and EQR, but slightly raising our 12-month price targets as detailed

below. Our AVB and EQR models are separate and do not contemplate the merger

Deniz Gunaydin announced last month, which management suggested will be ~2% NFFOps accretive

212-326-6074 to both companies with 100% of synergies in place within 18 months of closing. That Deniz.Gunaydin@truist.com

said, our price targets for the two companies are consistent with the 2.793 to 1 EQR

to AVB share ratio.

15 Page Document

Investors may read our 5/21 note for our initial view of the merger. In that note, we

Reasons for this report wrote, “We have existing Buy ratings on both these separate stocks, which we view as

good companies at good prices, and we do not think this plan diminishes our positive

✓ Adjusting Estimates and Price Targets investment thesis.”

Lowering AVB FFO Estimates: We are lowering our 2026 FFO estimate to

$11.09 per share from $11.23ps, which is within management’s $10.80-$11.30ps

guidance range. Excluding unrealized losses on property technology investments,

the distribution from an unconsolidated real estate venture, legal settlements/costs,

expensed transaction/development/pursuit costs, advocacy contributions, severance

costs, and other smaller nonrecurring items, our 2026 normalized FFO estimate goes

to $11.30ps from $11.42ps.