Vivmark Residential Reports Third Quarter 2026 Results and Provides Fourth Quarter and Full Year 2026 Guidance

ARLINGTON, Va. & CHICAGO--(BUSINESS WIRE)--Vivmark Residential (NYSE: VMRK) ("Vivmark" or the "Company") today reported results for the three and nine months ended September 30, 2026 as detailed below.

Commenting on the Company's performance, Benjamin W. Schall, President and CEO of the Company, said, “In our first quarter as Vivmark, we delivered operating results ahead of plan and are increasing our expectations for synergies and upfront value creation. In addition to these strong financial results, we are advancing our priorities of using our scale and capabilities to deliver more responsive service, better digital tools and greater convenience for our residents. As we look ahead to 2027, our strong operating momentum and outsized contributions from development communities completing and in lease up set the table for superior earnings growth. My huge thank you to our Vivmark team members for maintaining our discipline, executing at a high level, and advancing on our integration priorities. You are displaying the power of Vivmark.”

Merger Completion and Updates

On August 17, 2026 (the “Merger Date”), Equity Residential (“EQR”) and AvalonBay Communities, Inc. (“AVB”) completed their merger of equals (the “Merger”), forming Vivmark Residential. The Merger was accounted for as a reverse acquisition. EQR was the legal acquirer and AVB was the accounting acquirer. As a result:

• Historical financial statements. The Company’s financial statements continue those of AVB. Results for all periods before the Merger Date, including prior-period comparatives, are AVB’s alone.
• Results of operations. Results for the three and nine months ended September 30, 2026 reflect AVB alone before the Merger Date and the combined Company after it.
• Balance sheet. AVB’s assets and liabilities remain at their historical carrying amounts. EQR’s assets acquired and liabilities assumed were recorded at fair value as of the Merger Date.
• Legal and capital structure. The Company’s legal and capital structure, and outstanding equity securities are a continuation of EQR’s. Each AVB common share was exchanged for 2.793 Vivmark common shares (the “Exchange Ratio”).
• Development and transaction activity. Activity for the three and nine months ended September 30, 2026 reflect AVB alone before the Merger Date and the combined Company after it.

Since the Merger Date, the Company has made progress on several key aspects of the Merger, including:

• Operating synergies. The Company has increased its expected annual net run-rate operating synergies by $10 million to $135 million, driven by increased portfolio NOI opportunities. The Company expects to reach the full run-rate by March 2028, 18 months after the Merger Date.
• Merger-related costs. The Company now expects total Merger-related costs of approximately $725 million, $25 million below its initial estimate of $750 million. The initial estimate included transaction costs only, whereas the updated estimate includes both transaction and integration costs.
• Credit rating. On August 18, 2026, following completion of the Merger, S&P Global Ratings raised the Company’s long-term issuer credit rating to ‘A’ with a stable outlook from ‘A-’ for both AVB and EQR.

Per share amounts and weighted average shares for periods before the Merger Date have been retroactively adjusted to reflect the Exchange Ratio. The operational and financial metrics disclosed in this earnings release and supplemental schedules represent a combination of those previously disclosed by AVB and EQR. The operational metrics generally reflect those previously presented by EQR and the financial metrics for development generally reflect those previously presented by AVB.

Q3 and YTD 2026 Results

Commenting on the Company's operating performance, Michael Manelis, COO of the Company, said, "We are pleased with the performance of our combined portfolio in the third quarter, with strong physical occupancy and improving pricing momentum across much of the portfolio. Our teams have maintained an intense focus on operating fundamentals throughout the integration, and that discipline is reflected in our results. These strong fundamentals position us well for growth in 2027 and beyond as we use our scale and operating expertise to improve the resident experience and create a lasting competitive advantage with significant opportunities to drive sustainable NOI growth.”

Merged Same Store Residential Operating Statistics

Following the Merger, the Company's Same Store Portfolio includes communities that were owned and had Stabilized Operations as of the beginning of the prior year. Because the EQR communities have been owned by the Company only since the Merger Date, they are not included in the Company's Same Store Portfolio. The EQR communities will not be eligible to enter the Company's Same Store Portfolio until January 1, 2028. To provide relevant operating metrics for the quarter and year-to-date results, and an understanding of the operating performance and growth potential of the combined company, stabilized EQR communities that would otherwise have met the Company's Same Store criteria are presented on a merged basis, as if owned by the Company during all periods presented. The Merged Same Store Portfolio presentation below represents the Company's Same Store Portfolio and the EQR Adjusted Same Store Portfolio as a single portfolio. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for more details.

Operating results for the Merged Same Store Portfolio of 157,377 apartment homes are presented below:

Development Activity

As of quarter-end, the Company's development activity, including communities under construction and those completed this quarter, represented a Total Capital Cost of $3.8 billion and a weighted average Projected NOI as a percentage of Total Capital Cost of 6.2%.

During the quarter and year-to-date, the Company reported the following development activity, which reflects AVB alone before the Merger Date and the combined Company after it:

Transaction Activity

During the quarter and year-to-date, the Company completed the following transactions, which reflects AVB alone before the Merger Date and the combined Company after it:

Capital Markets & Balance Sheet:

As of quarter-end, the Company had:

During the quarter, the Company completed the following activity:

In addition, in August 2026, prior to completing the Merger, EQR issued $600.0 million aggregate principal amount of 4.95% coupon notes due October 1, 2031, and $400.0 million aggregate principal amount of 5.45% coupon notes due October 1, 2036, in a public offering.

Fourth Quarter 2026 and Full Year 2026 Guidance

The Company has established the following guidance for fourth quarter 2026 EPS, FFO per share and Core FFO per share, and full year 2026 Merged Same Store operating performance:

About Vivmark Residential

Vivmark Residential (NYSE: VMRK), a S&P 500 company, sets the mark for what home can be, and our vision is to be the most trusted and best-performing rental housing company in America, one that only gets better as it grows. Our people, scale and capabilities create a self-reinforcing performance cycle that is designed to deliver structurally higher growth. With more than 185,000 apartment homes across premier U.S. markets and $4.4 billion of Development Underway, Vivmark is redefining what rental housing can be. For more details, please visit www.VivmarkResidential.com.

Forward-Looking Statements, Definitions and Non-GAAP Reconciliations

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms 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, the Company's historical results may not be indicative of future results.

The Company will hold a conference call on November 5, 2026 at 1:00 PM ET to discuss and answer questions about these results. Please visit the Investor section of the Company’s website at www.VivmarkResidential.com for the webcast link.

Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms

($ in thousands except where otherwise indicated, per share and per apartment home data)
(All per share data is diluted)

The operational and financial metrics disclosed in this earnings release and supplemental schedules represent a combination of those previously disclosed by AVB and EQR. The operational metrics generally reflect those previously presented by EQR and the financial metrics for development generally consist of those previously provided by AVB.

Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined, reconciled and further explained on Attachment 13, Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms. Attachment 13 is included in the full earnings release available at the Company’s website at https://investors.vivmarkresidential.com. This wire distribution includes only the following definitions and reconciliations.

Average Monthly Revenue per Home – As calculated for certain Development communities under construction and in lease-up, reflects management’s projected stabilized rents net of estimated stabilized concessions, including estimated stabilized other revenue and excluding projected Non-Residential revenue.

Bad Debt, Net – Amount of previously recognized revenue that the Company estimates it will not collect.

Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved.

Debt Balances:

Commercial Paper Program – The Company may borrow up to a maximum of $2.5 billion under its Commercial Paper Program subject to market conditions.

Revolving Credit Facilities – The Company may borrow up to a maximum of $5 billion under two separate unsecured Revolving Credit Facilities. One of the Company’s $2.5 billion Revolving Credit Facilities matures April 3, 2030, and the other matures December 3, 2030. The interest rate on advances under both facilities will generally be SOFR plus a spread (currently 0.70%), or based on bids received from the lending group, and an annual facility fee (currently 0.10%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. In addition, the Company limits its utilization of the facilities in order to maintain liquidity to support its $2.5 billion Commercial Paper Program along with certain other obligations. The following table presents the available liquidity on the Company’s total unsecured Revolving Credit Facilities:

Term Loan Facility – As of September 30, 2026, the Company had $550 million outstanding under its senior unsecured term loan facility, the full amount available under the facility. The facility matures on April 3, 2029 and bears interest at SOFR plus a spread, which is based on the credit ratings of the Company’s long-term unsecured debt and was 0.800% as of September 30, 2026. The Company has entered into interest rate swaps that effectively fix the interest rate on the full $550 million facility.

Debt Covenant Compliance – Our unsecured debt includes certain financial and operating covenants including, among other things, maintenance of certain financial ratios. These provisions are contained in the indentures applicable to each note payable and the credit agreements for our Revolving Credit Facilities. The Company was in compliance with its unsecured debt covenants for all periods presented.

Development – Is composed of communities that are either currently under construction or for which construction has completed, but were not stabilized as of January 1 of the current year. These communities may be partially or fully complete and operating.

Development Underway – Development Underway refers to the Company’s wholly-owned communities under construction as of September 30, 2026 and Development completions that have not yet achieved Stabilized Operations.

Disposition Yield – The Projected NOI that the Company expects to give up over the 12 months following the sale of a community to a third party, divided by the sum of (i) the gross sales price and (ii) any significant capital expenditures the Company expects to avoid over the same 12 months. The weighted average Disposition Yield for communities sold during the period is calculated by weighting each community’s Disposition Yield by its relative gross sales price.

Earnings Per Share ("EPS") – Net income per share calculated in accordance with GAAP. Expected EPS is calculated on a basis consistent with actual EPS. Due to the uncertain timing and extent of community dispositions and the resulting gains/losses on sales, actual EPS could differ materially from expected EPS.

EBITDA for Real Estate and Core EBITDA for Real Estate:

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) – The National Association of Real Estate Investment Trusts (“Nareit”) defines EBITDAre (September 2017 White Paper) as net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating communities, impairment write-downs of depreciated operating communities, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating communities within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities.

The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating communities, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies.

Core Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“Core EBITDAre”) – Represents net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for non-comparable items. Core EBITDAre, total debt to Core EBITDAre and net debt to Core EBITDAre are important metrics in evaluating the credit strength of the Company and its ability to service its debt obligations. The Company believes that Core EBITDAre, total debt to Core EBITDAre, and net debt to Core EBITDAre are useful to investors, creditors and rating agencies because they allow investors to compare the Company’s credit strength to prior reporting periods and to other companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual credit quality.

Economic Gain (Loss) – Economic Gain (Loss) is calculated as the net gain (loss) on sales of real estate communities in accordance with GAAP, excluding accumulated depreciation. The Company generally considers Economic Gain (Loss) to be an appropriate supplemental measure to net gain (loss) on sales of real estate communities in accordance with GAAP because it is one indication of the gross value created by the Company's acquisition, development, renovation, management and ultimate sale of a community and because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold community.

FFO and Core FFO:

Funds From Operations (“FFO”) – is defined by The National Association of Real Estate Investment Trusts (“Nareit” - December 2018 White Paper) as net income (computed in accordance with GAAP), excluding gains or losses from sales and impairment write-downs of depreciable real estate and land when connected to the main business of a REIT, impairment write-downs of investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and depreciation and amortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Expected FFO per share is calculated on a basis consistent with actual FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS.

The Company believes that FFO and FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company, because they are recognized measures of performance by the real estate industry and by excluding gains or losses from sales and impairment write-downs of depreciable real estate and excluding depreciation related to real estate (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help compare the operating performance of a company’s real estate between periods or as compared to different companies.

Core Funds From Operations ("Core FFO" or "CFFO") – Core FFO is the Company's FFO as adjusted for non-core items outlined in the table below.

Expected Core FFO per share is calculated on a basis consistent with actual Core FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS.

The Company believes that Core FFO and Core FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company because they allow investors to compare the Company's operating performance to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company's actual operating results.

FFO, FFO available to Common Shares and Units, Core FFO and Core FFO available to Common Shares and Units do not represent net income, net income available to Common Shares or net cash flows from operating activities in accordance with GAAP. Therefore, FFO, FFO available to Common Shares and Units, Core FFO and Core FFO available to Common Shares and Units should not be exclusively considered as alternatives to net income, net income available to Common Shares or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company's calculation of FFO, FFO available to Common Shares and Units, Core FFO and Core FFO available to Common Shares and Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies.

FFO available to Common Shares and Units and Core FFO available to Common Shares and Units are calculated on a basis consistent with net income available to Common Shares and reflect adjustments to net income for preferred distributions and premiums on redemption of preferred shares in accordance with GAAP.

The followi

Marty McKenna, marty.mckenna@vivmark.res