AVB merges with Equity Residential; net income falls 42% on below-the-line drags

Filed July 30, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 7, 2025 · ~2 min read

Key Changes

• high

  Definitive merger agreement with Equity Residential signed May 20, 2026: each AVB share converts to 2.793 Equity Residential shares at a fixed ratio (no price adjustment). Expected to close H2 2026 pending shareholder approvals. AVB stockholders will own ~51% of the combined company, diluting voting influence. $1.070 billion termination fee payable to Equity Residential if AVB pursues an alternative transaction.

  Risk Factors: Merger completion risk verify on EDGAR →
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  Net income fell 42% to $155.7M (from $269.9M prior year) while operating income rose 5% to $529.2M. The $113M net-income decline did NOT come from operations: below-the-line drags totaled -$136.4M (non-operating/other -$135.9M, income tax -$601K, noncontrolling interest +$17K). Merger costs of $12.4M and lower real estate sale gains (Q2 2026 loss of $338K vs. Q2 2025 gain of $99.5M) drove the bottom-line deterioration.

  MD&A: Net income decline verify on EDGAR →
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  Same Store NOI growth decelerated to 1.0% (from 2.7% prior year) as revenue growth of 1.6% was offset by operating expense growth of 2.9%. Property tax increases accelerated to 3.4% (from 2.3%) due to higher rates/assessments, fewer tax appeal benefits, and expiring NYC incentive programs. Margin compression reflects softer operating fundamentals in the core portfolio.

  MD&A: Same Store NOI growth verify on EDGAR →