AvalonBay Communities : Second Quarter 2022 Investor Teleconference Presentation

Avalon Doral

Doral, FL

AVA RiNo

Denver, CO

eaves Santa Margarita Santa Margarita, CA

INVESTOR TELECONFERENCE

PRESENTATION

Second Quarter 2022

July 27, 2022

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, including the impact of the COVID-19 pandemic and related governmental actions and changes in economic conditions,

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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REVIEW OF SECOND QUARTER AND YEAR-TO-DATE RESULTS AND ACTIVITY

Q2 & YTD 2022 RESULTS & ACTIVITY	Q2	YTD
CORE FFO PER SHARE YEAR-OVER-YEAR GROWTH	22.7%	19.3%
SAME STORE TOTAL RESIDENTIAL RENTAL REVENUE GROWTH
YEAR-OVER-YEAR	12.9%	10.7%
SEQUENTIAL	5.0%	N/A
DEVELOPMENT COMPLETIONS | WTD. AVG. INITIAL PROJECTED STABILIZED YIELD(1)	$ 380M | 5.7%	$ 600M | 6.2%
DEVELOPMENT STARTS	$ 325M	$ 460M
STRUCTURED INVESTMENT PROGRAM ("SIP") COMMITMENTS	$ 80M	$ 80M
CAPITAL RAISED | WTD. AVG. INITIAL COST OF CAPITAL(2)	$ 40M | 3.2%	$ 310M | 3.7%
EQUITY FORWARD(3)	$ 495M	$ 495M

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 consolidated Development completions only.
2. Capital raised includes net proceeds from all 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 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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SECOND QUARTER SAME STORE RENTAL REVENUE GROWTH DRIVEN BY STRONG EFFECTIVE LEASE RATE GROWTH AND HIGHER RENT RELIEF…

AVB SECOND QUARTER 2022 SAME STORE YEAR-OVER-YEAR

COMPONENTS OF RESIDENTIAL RENTAL REVENUE GROWTH

(1)

16%

YEAR-OVER-YEAR GROWTH

12.9%

1.0%

0.2%

(0.6%)

8%

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RESIDENTIAL	CONCESSIONS	ECONOMIC	OTHER	UNCOLLECTIBLE	RENT	RESIDENTIAL
LEASE RATES	& OTHER	OCCUPANCY	RENTAL	LEASE	RELIEF(1)	RENTAL REVENUE
	DISCOUNTS		REVENUE	REVENUE		GROWTH
				(EXCLUDING RENT RELIEF)

Source: Internal company reports.

The Company amortizes concessions over the term of the lease.

1. Includes rent relief ("Rent Relief") recognized by the Company from the Emergency Rental Assistance Program funded by the U.S. Department of Treasury to assist households that are unable to pay rent and utilities due to the COVID-19 pandemic. During the second quarter of 2022, the Company recognized ≈ $15.0 million of Rent Relief for Same Store communities, as compared to ≈ $3.0 million of Rent Relief during the second quarter of 2021.

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