Story perspectives

AvalonBay and Equity Residential Merge, Form $2.81-Dividend REIT

5/22/2026

Summary

AvalonBay Merges

AvalonBay Communities and Equity Residential agreed on May 21, 2026 to merge in an all-stock deal.
AvalonBay shareholders will receive 2.793 Equity Residential shares per share, giving them about 51.2% of the combined company.
Benjamin Schall will be president and CEO of the new REIT and Steve Sterrett will serve as chairman.
The companies expect $175 million of gross annual synergies, $125 million of net operating synergies and a $2.81 per-share dividend.

Summary

AvalonBay Forms Board

The new board will initially include seven trustees from Equity Residential and seven directors from AvalonBay.
Goldman Sachs, Morgan Stanley, Centerview Partners and BofA Securities serve as advisers while the firms plan to expand AI for demand forecasting and operational automation.
Leaders intend to create an affordable-housing bridge-loan facility to provide pre-development capital to nonprofit developers.

History

Historical Context

The 2026 AvalonBay-Equity Residential merger, valuing AvalonBay at 2.793 Equity shares per share and naming Benjamin Schall CEO, echoes Blackstone’s 2007 $39 billion takeover of Equity Office that created the nation’s largest office REIT. That deal marked the peak of the 2006-07 buyout boom and set a precedent for later consolidations such as EQ Office’s 2025 merger into Perform Properties.

1 of 3

AvalonBay Merges

AvalonBay Communities and Equity Residential agreed on May 21, 2026 to merge in an all-stock deal.
AvalonBay shareholders will receive 2.793 Equity Residential shares per share, giving them about 51.2% of the combined company.
Benjamin Schall will be president and CEO of the new REIT and Steve Sterrett will serve as chairman.
The companies expect $175 million of gross annual synergies, $125 million of net operating synergies and a $2.81 per-share dividend.

1 / 3