AvalonBay Communities, Inc. Prices $400 Million Senior Notes Offering

AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”) announced today that it priced an underwritten public offering of $400 million of 5.350% senior unsecured notes due 2034 (the “Notes”). The offering is expected to close on May 14, 2024, subject to the satisfaction of customary closing conditions.

Details of the offering are set forth in the table below:

The effective interest rate of the Notes is 4.961%, including the impact of prior interest rate hedges, but excluding offering costs.

Interest on the Notes will be paid semi-annually on June 1 and December 1, with the first payment to be made on December 1, 2024. The Notes will mature on June 1, 2034, unless earlier redeemed.

The Company expects to use the net proceeds, after deducting the underwriting discount and estimated offering expenses, of approximately $395.2 million from the sale of the Notes for identified and prospective land acquisitions, the development and redevelopment of apartment communities, the acquisition of communities, funding of its structured investment program investments, and working capital and general corporate purposes, which may include the repayment of outstanding indebtedness under its commercial paper program, which allows the Company to issue, from time to time, unsecured commercial paper notes with varying maturities of less than one year up to a maximum amount outstanding at any one time of $500 million, or its $2.25 billion revolving variable rate unsecured credit facility. General corporate purposes may also include the repayment and refinancing of other indebtedness. Pending the application of such net proceeds, the Company may temporarily invest all or a portion of the net proceeds from the offering in cash or cash equivalents and/or hold such proceeds in accordance with its internal liquidity policy.

BofA Securities, PNC Capital Markets LLC, RBC Capital Markets, TD Securities, Goldman Sachs & Co. LLC, J.P. Morgan, Morgan Stanley, Scotiabank, Truist Securities and Wells Fargo Securities are acting as joint book-running managers of the offering. Barclays, BNP Paribas, Deutsche Bank Securities, Mizuho, US Bancorp, and Ramirez & Co., Inc. are acting as co-managers of the offering.

The offering is being made pursuant to an automatic shelf registration statement that became effective upon filing with the Securities and Exchange Commission on February 23, 2024. The prospectus supplement and accompanying base prospectus relating to the offering will be filed with the Securities and Exchange Commission (the “SEC”). When available, a copy of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained by contacting: BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department, telephone: 1-800-294-1322 or by email at dg.prospectus_requests@bofa.com; PNC Capital Markets LLC, 300 Fifth Avenue, Pittsburgh, Pennsylvania 15222, telephone: 1-855-881-0697 or by email at pnccmprospectus@pnc.com; RBC Capital Markets, LLC, Brookfield Place, 200 Vesey Street, 8th Floor, New York, New York 10281, Attention: Syndicate Operations, telephone: 1-866-375-6829 or by email at: rbcnyfixedincomeprospectus@rbccm.com; TD Securities (USA) LLC, 1 Vanderbilt Avenue, 11th Floor, New York, New York 10017, Attention: DCM-Transaction Advisory, telephone: 1-855-495-9846; or by visiting the EDGAR database on the SEC’s web site at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which include, but are not limited to, statements related to the offering of the Notes and the expected use of the net proceeds from the offering. The Company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of complying with those safe harbor provisions, in each case, to the extent applicable. The Company cautions investors that any such forward-looking statements are based on current beliefs or expectations of future events and on assumptions made by, and information currently available to, management. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “project,” “plan,” “may,” “shall,” “will,” “pursue” and other similar expressions in this press release, that predict or indicate future events and trends and that do not report historical matters. Such forward-looking statements are subject to various risks and uncertainties, including, among others, the availability of debt and equity financing and the trends affecting the Company’s financial condition or results of operations. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are described under the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as such factors may be updated from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.

About AvalonBay Communities, Inc.

As of March 31, 2024, the Company owned or held a direct or indirect ownership interest in 299 operating apartment communities containing 90,673 apartment homes in 12 states and the District of Columbia, of which 17 communities were under development. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado.

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