AvalonBay Communities : Third Quarter 2022 Investor Teleconference Presentation

Avalon Doral

Doral, FL

AVA RiNo

Denver, CO

eaves Santa Margarita Santa Margarita, CA

INVESTOR TELECONFERENCE

PRESENTATION

Third Quarter 2022

November 3, 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 THIRD QUARTER AND YEAR-TO-DATE RESULTS AND ACTIVITY

THIRD QUARTER & YEAR-TO-DATE 2022 RESULTS & ACTIVITY	Q3	YTD
CORE FFO PER SHARE YEAR-OVER-YEAR GROWTH	21.4%	20.0%
SAME STORE RESIDENTIAL RENTAL REVENUE GROWTH
YEAR-OVER-YEAR	11.8%	11.1%
SEQUENTIAL	2.2%	N/A
DEVELOPMENT COMPLETIONS | WTD. AVG. INITIAL PROJECTED STABILIZED YIELD(1)	N/A	$ 600M | 6.2%
DEVELOPMENT STARTS	$ 200M	$ 665M
STRUCTURED INVESTMENT PROGRAM ("SIP") COMMITMENTS	$ 15M	$ 90M
CAPITAL RAISED | WTD. AVG. INITIAL COST OF CAPITAL(2)	$ 630M | 4.1%	$ 940M | 3.9%
EQUITY FORWARD(3)	N/A	$ 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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UPDATED FULL YEAR FINANCIAL AND OPERATING OUTLOOK

	FULL YEAR 2022 UPDATED OUTLOOK SUMMARY(1)	REVISED	JULY
	OUTLOOK	OUTLOOK(2)
PROJECTED CORE FFO PER SHARE GROWTH	18.5%	19.4%
SAME STORE COMMUNITIES(RESIDENTIAL ONLY)
RENTAL REVENUE GROWTH	11.0%	11.25%
	KEY DRIVER  SLIGHTLY LOWER LEASE RATES
OPERATING EXPENSE GROWTH	5.75%	5.0%
	KEY DRIVERS  HIGHER-THAN-EXPECTED RESIDENT TURNOVER IN THE THIRD QUARTER,
	AND INCREASED UTILITY COSTS IN THE FOURTH QUARTER
NET OPERATING INCOME GROWTH	13.4%	14.25%

Source: Internal company reports.

See Appendix for a reconciliation of Projected EPS to Projected FFO and to Projected Core FFO.

1. All figures based on the midpoint of the Company's outlook ranges.
2. July outlook provided on July 27, 2022.

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