Avalon Woburn

Woburn, MA

Kanso Twinbrook

Rockville, MD

AVA Hollywood at La Pietra Place

Los Angeles, CA

INVESTOR TELECONFERENCE

PRESENTATION

Fourth Quarter 2022

February 8, 2023

See Appendix for information about forward-looking statements

and definitions and reconciliations of non-GAAP financial measures and other terms.

For the reasons described in the referenced forward-looking statements

our historical results may not be indicative of future results.

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PARTICIPANTS

BEN SCHALL

CHIEF EXECUTIVE OFFICER & PRESIDENT

KEVIN O'SHEA

CHIEF FINANCIAL OFFICER

MATT BIRENBAUM

CHIEF INVESTMENT OFFICER

SEAN BRESLIN

CHIEF OPERATING OFFICER

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2022 Review

REVIEW OF FOURTH QUARTER AND FULL YEAR 2022 RESULTS AND ACTIVITY

FOURTH QUARTER | FULL YEAR 2022 RESULTS & ACTIVITY

Q4

FULL YEAR

CORE FFO PER SHARE YEAR-OVER-YEAR GROWTH

14.1%

18.5%

SAME STORE RESIDENTIAL RENTAL REVENUE YEAR-OVER-YEAR GROWTH

10.3%

10.9%

DEVELOPMENT COMPLETIONS | WTD. AVG. INITIAL PROJECTED STABILIZED YIELD(1)

$ 95M | 7.5%

$ 690M | 6.4%

DEVELOPMENT STARTS

$ 65M

$ 730M

CAPITAL RAISED | WTD. AVG. INITIAL COST OF CAPITAL(2)

$ 515M | 4.3%

$ 1.5B | 4.1%

EQUITY FORWARD | % OF PROCEEDS AVAILABLE FOR SETTLEMENT IN 2023(3)

N/A

$ 495M | 100%

Source: Internal company reports.

See Appendix for a reconciliation of Net Income attributable to common shareholders to FFO and to Core FFO.

  1. Development completions and the weighted average Initial Projected Stabilized Yield include wholly-owned Development completions only.
  2. Capital raised includes net proceeds from all debt and equity issuances, wholly-owned dispositions (including residential condominium sales at The Park Loggia), and distributions from unconsolidated real estate entities. Weighted average initial cost of capital includes all debt (inclusive of the effect of interest rate hedges) and equity issuances, and wholly-owned dispositions (including the average imputed carry cost of the residential condominiums at The Park Loggia) only.
  3. In April 2022, in connection with an underwritten offering of shares, the Company entered into forward contracts to sell 2,000,000 shares of common stock by the end of 2023 for approximate proceeds of $494.2 million net of offering fees and discounts based on the initial forward price. The proceeds that the Company expects to receive on the date or dates of settlement are subject to certain customary adjustments during the term of the forward contract for the Company's dividends and a daily interest charge.

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2022 Review

OPERATING MODEL TRANSFORMATION DELIVERED ≈ $11M OF INCREMENTAL NOI IN 2022, WITH MEANINGFUL CONTRIBUTIONS EXPECTED IN 2023

  • CONTINUED TO DEPLOY AVALON CONNECT (OUR BULK INTERNET | MANAGED WI-FI AND SMART HOME TECHNOLOGY OFFERING) ACROSS THE PORTFOLIO
    • IN THE AGGREGATE, GENERATED NEARLY $2 MILLION OF INCREMENTAL NOI
      • GENERATED ≈ $2.5 MILLION OF ANNUALIZED INCREMENTAL NOI IN THE FOURTH QUARTER
  • EXPANDED ON-DEMAND FURNISHED HOUSING PROGRAM
    • PRODUCED ≈ $1 MILLION OF INCREMENTAL NOI
  • DIGITALIZATION AND AUTOMATION EFFORTS INCREASED OPERATING EFFICIENCIES
    • ONSITE OFFICE HEADCOUNT DECLINED BY ≈ 5%, WHICH DELIVERED ≈ $4 MILLION IN OFFICE LABOR SAVINGS
    • ONSITE MAINTENANCE HEADCOUNT DECLINED BY ≈ 4%, WHICH RESULTED IN ≈ $4 MILLION OF MAINTENANCE LABOR SAVINGS

Source: Internal company reports.

All data presented above is for Same Store communities only.

Incremental NOI represents NOI recognized by the Company in 2022 that was not present in the prior year period.

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